Min - Economic Development Corporation - 2007 - 05/16 - RegularI
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ALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
May 16, 2007
Board
Kurt Kizer
Tim Wood
Carl Clemencich
Mark Pacheco
Maxine Sweet
Staff
Robert Winningham
Jennifer Grimm
Daniel Bowman
Call to Order and Announce a Ouomm Present.
Guests
Mayor Steve Terrell
Peter Vargas, City of Allen
David Hoover, City of Allen
Pete Smith, AEDC Attorney
Dave Noble, Trammell Crow Company
Frank O'Reilly, Sanmma-SCI
Josh Buis, CB Richard Ellis
Bryan Loewen, OVA Cawley
With a quorum of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kurt Kizer at 6:10 p.m. on Wednesday, May 16,
2007 at the AEDC Office.
1. Approval of Minutes of the March 21. 2007 Regular Meeting
The minutes of the March 21, 2007 Regular Meeting of the AEDC Board of Directors were approved
unanimously as submitted on a motion by Maxine Sweet, seconded by Mark Pacheco.
2. Citizens' Comments
Dave Noble, Trammell Crow Company, addressed the Board regarding Allen Station Business Park.
Noble was previously under the impression that the AFDC prospect for Allen Station Business Park
was Andrews Corporation, and only recently became aware that the prospect is actually a beer
distributor. He does not believe that this is the type of product the Board should attract to Allen
Station Business Park.
Noble stated that distribution product was not part of the AEDC Board's previous vision for the Park.
As an example, Noble cited the Blockbuster distribution project that the Board chose not to pursue in
the 1990s. Noble expressed his displeasure with this type of development and requested that the
AEDC Board insure that this new project is not constructed with dock doors facing Trammell Crow's
existing buildings in Allen Station Business Park
Noble requested that the AEDC Board adopt a Building Site Restriction Agreement similar to the
agreement that is in effect for Trammell Crow's buildings in the Park, and apply such restrictions to
the land currently under option by the AEDC in the Park. Noble stated that his investor, ING Group,
would not tum a blind eye to dock doors facing Trammell Crow's existing buildings.
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Regular Meeting, May 16, 2007
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Noble mentioned that the original vision for Allen Station Business Park was to create a large,
premier, master -planned light industrial park. Noble expressed his regret for not purchasing acreage in
the Park sooner. He also expressed his desire to possibly construct Class AA office space elsewhere in
Allen eventually.
3. Approval of AEDC Financial Reports
Daniel Bowman presented the AFDC Financial Reports. Peter Vargas discussed possible reasons for
the current trend in sales tax receipts for the City of Allen. On a motion by Carl Clemencich, seconded
by Tim Wood, the Board unanimously approved the AEDC Financial Reports as presented.
4. Convene into Closed Executive Session.
The Board convened into closed executive session at 6:42 p.m. to deliberate commercial and financial
information and economic incentives for the following:
• Recruitment of Project Twist -Off
• Recruitment of Project G
• Retention of Sanmina-SCI
Reconvene in Open Session.
The Board reconvened into regular session at 8:23 p.m.
5. Consider and Take Action for Recruitment of Project Twist -Off
Mayor Terrell updated the Board on the status of Project Twist -Off. The Board discussed possible
incentives for the recruitment of the project.
On a motion by Carl Clemencich, seconded by Maxine Sweet, the Board unanimously approved
authorizing the AFDC Executive Director to execute the following agreements:
• A real estate contract with Andrews Family Properties Ltd. for the sale of 63 acres that the
AEDC has under contract with LLG Lands, Inc.
• A real estate contract with the City of Allen to purchase 19 acres for subsequent resale by the
AEDC to Andrews Family Properties, Ltd.
• A real estate contract with Andrews Family Ltd. for the purchase of the 19 acres that the
AFDC will acquire from the City of Allen
• Any amendments or instruments related thereto
The Board also stipulated that each real estate contract require a restriction or other agreement to
require certain commercial and retail development according to agreed schedules and an option and
right of first refusal in favor of the AEDC in the event the development conditions are not satisfied.
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Allen Economic Development Corporation
Regular Meeting, Mav 16, 1007
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1, 6. Consider and Take Action for Project G
Peter Vargas updated the Board on the status of Project G. The Board discussed possible incentives
for the recruitment of the project.
No action was taken on this item.
7. Consider and Take Action for Sanmina-SCI
Frank O'Reilly, Sanmina-SCI, appeared before the Board to request incentives to assist with the
retention of the company in Allen. The AEDC Board discussed the project.
On a motion by Mark Pacheco, Seconded by Tim Wood, the Board unanimously approved authorizing
the AEDC Executive Director to negotiate and execute an incentive agreement with Samiina-SCI
consistent with the direction provided by the Board and subject to the review and approval of the
AEDC Board President.
4. Convene into Closed Executive Session.
The Board convened into closed executive session at 8:24 p.m. to deliberate commercial and financial
information and economic incentives for the recruitment of Project Long Haul.
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Reconvene in Ooen Session
The Board reconvened into regular session at 9:16 p.m.
8. Consider and Take Action for Project Lone Haul
Representatives of Project Long Haul appeared before the Board to request assistance with securing
land for the protect. The Board discussed the project.
No action was taken on this item.
9. Consider and Take Action for Approval of Landscape Design Changes to the Common Park Area
in Allen Central Park
The Board discussed changes to the design of the Common Park Area in Allen Central Park requested
by Duke Realty Duke realty is currently in the process of constructing an approximately 150,000-sf
Class A office building in Allen Central Park, located at the northwest comer of Bethany Drive and
US 75, and is partnering with the AEDC on the development of the Central Park Area. The AEDC
Board previously approved an Economic Development Agreement to assist with this development,
which requires that Duke Realty obtain AEDC Board approval of the Common Area Park design.
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Regular Meeting, May 16, 2007
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Carl Clemencich updated the Board on his recent meeting with Blair Oden, Duke Realty, regarding the
design of the Common Area Park. Oden assured Clemencich that Duke Realty plans to visit with the
AEDC Board in the future regarding the possibility of adding additional features to the park, such as a
water feature. Oden also told Clemencich that Duke Realty plans to add additional tables and benches
to the park in the future.
It was noted that Phase I of the Common Area Park will only contain a spot for a statue, with plans to
locate a statue to the park in a future phase.
On a motion by Carl Clemencich, seconded by Kurt Kizer, the Board voted four (4) for, one (1)
abstained with Mark Pacheco abstaining, and none (0) opposed to approve the new design of the
Common Area Park in Allen Central Park as submitted by Duke Realty, with the understanding that
Duke will revisit the concept of a water feature and add additional tables and benches at a later date.
Mark Pacheco abstained from discussion on this item.
10. Review the Allen Economic Development Corporation's Preliminary Budget for Fiscal Year
2007-08 and Adjustments for Fiscal Year 2006-07
Robert Winningham presented the AEDC's Preliminary Budget for Fiscal Year 2007-08 and
Adjustments for Fiscal Year 2006-07 Carl Clemencich inquired about the amounts budgeted for
salaries and benefits and the $60,000 budgeted for furniture. Daniel Bowman stated that the salaries
and benefits figures have not yet been updated by the City Finance Department. Jennifer Grimm
explained that the amount budgeted for furniture is a preliminary projection of the cost of purchasing
furniture to famish the new AEDC office.
The Board will consider approval of the final AFDC Budget for Fiscal Year 2007-08 and the final
adjustments to the AEDC Budget for Fiscal Year 2006-07 at their June meeting.
11. Administrative and Marketing Activities of the AEDC / Executive Director's Report
David Hoover, City of Allen Planning Director, updated the Board on the status of the Allen Town
Square development in Allen's Central Business District. As of last week, the developer for the
project had not started their architectural planning or engineering for the project. Hoover estimates
that it will be at least 3 months before they could start constructing the building. It was noted that such
a timeline would not meet the requirements of the Economic Development Agreement between the
AEDC and the developer.
Jennifer Grimm updated the Board on marketing activities of the AFDC. Robert W inningbam thanked
Jennifer Grimm and Tracey Cline for their work on planning for City of Allen representatives to attend
the upcoming International Council of Shopping Centers (ICSC) Convention in Las Vegas.
Winningham also informed the Board that Project Tel-Dmg is once again actively considering locating
to Allen. Tel -Drug representatives visited Allen recently and are planning to return in 3 weeks.
Winningham noted that Project Fortress is still in the process of considering Allen. He also announced
that he and his wife are expecting a baby boy.
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Regular Meeting, Mav 16, 1007
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12. Scheduling of Next AEDC Board of Directors Meeting
The next Regular Board meeting was scheduled for June 20, 2007 at 6:00 p.m.
13. Adioum.
On a motion by Tim Wood, seconded by Maxine Sweet, the meeting was officially adjourned at 9.40
p.m.
These minutes approved this 20" day of June, 2007
Kurt Kizer, Pres ent
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Carl Clemencich, Secretary