Min - Economic Development Corporation - 2007 - 10/17 - RegularE
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ALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
Wednesday, October 17, 2007
Board
Kurt Kizer
Tim Wood
Mark Pacheco - Absent
Maxine Sweet - Absent
Carl Clemencich
Staff
Robert Winningham
Jennifer Grimm
Daniel Bowman
Call to Order and Announce a Ouorum Present.
Guests
Peter Vargas
Pete Smith
Kevin Hammeke
Robbie Clark
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 6:02 p.m. on Wednesday,
October 17, 2007 at the AEDC Office.
1. Citizens' Comments
Robbie Clark introduced himself as the Senior Vice President of Legacy Bank in McKinney.
2. Approval of Minutes of the September 19, 2007 Regular Meeting
On a motion by Tim Wood, seconded by Carl Clemencich, the Board unanimously approved the
minutes of the September 19, 2007 Regular Meeting of the AEDC Board of Directors.
3. Approval of AEDC Financial Reports
Daniel Bowman presented the AEDC Financial Reports. On a motion by Carl Clemencich, seconded
by Tim Wood, the Board unanimously approved the AEDC Financial Reports as presented.
4. Adopt a Resolution Authorizing the Issuance of Allen Economic Development Corporation Sales
Tax Revenue Bonds Series 2007
Kevin Hammeke updated the Board on the status of the AEDC Bond Issuance. AEDC bonds will pay
for the improvement of Stacy Road, drainage, Allen Station Parkway, US 75 frontage road
improvements, US 75 ramp reversals, improvement of the US 75 and Stacy Road intersection, and
other such infrastructure associated with Project G. Hammeke estimated that the AEDC will need to
issue between $15.43 - $15.44 million in bonds to pay for these improvements. The interest is
estimated at between 3.7 - 4.9%.
Allen Economic Development Corporation
Regular Meeting, October 17, 2007- Page 2
The City has prepared a Preliminary Official Statement associated with the issuance of bonds. It has
been determined that the AEDC rating on debt is "At" Hammeke anticipates that the bond issuance
will be presented to the Allen Cit Council for their approval on November 27ih, with closing on the
bonds to follow on December 13
Peter Vargas explained that the City of Allen has completed all of its work related to Project G, but
that Global Entertainment is now slowing the process down. There is an outstanding issue with one of
the guarantees included in the Management Agreement being negotiated between the City and Global.
It is expected that this issue will be resolved after a meeting between Global and City officials on
October 191°
Hammeke mentioned that the annual impact of the bond payments on the AEDC budget will still be
roughly in line with what was previously discussed ($1,050,000 - $1,100,000). Pending Board
approval of the resolution authorizing the issuance of AEDC sales tax revenue bonds, there are a
number of documents associated with the issuance of bonds that must be executed by the AEDC Board
President and Secretary.
On a motion by Carl Clemencich, seconded by Tim Wood, the Board adopted the resolution
authorizing the issuance of Allen Economic Development Corporation Sales Tax Revenue Bonds,
Series 2007, establishing parameters for the sale and issuance of such bonds and delegating certain
matters related to the sale and issuance of such bonds to an authorized officer of the Corporation. It
was noted that the authorized officer to which these matters were delegated is Peter Vargas, City
Manager.
5 Consider and Take Action on a Recommendation to the Allen City Council for Revision of the
City of Allen Tax Abatement Guidelines
No action was taken on this item.
6. Convene into Closed Executive Session
The Board convened into closed executive session at 6:40 p.m. to deliberate commercial and financial
information and economic incentives for the retention of a local business and the recruitment of
Project Halo.
Reconvene in Open Session
The Board reconvened into regular session at 7:06 p.m.
7. Consider and Take Action for Approval of an Economic Development Agreement Between the
AEDC and a Local Business
The AEDC Board gave the AFDC Executive Director direction to continue negotiating an Economic
Development Agreement with a local business.
Allen Economic Development Corporation
Regular Meeting, October I �, 2007 - Page 3
8. Consider and Take Action for the Recruitment of Proiect Halo
No action was taken on this item.
9. Administrative and Marketing Activities of the AFDC /Executive Director's Report
Robert Winningham updated the Board on the status of various projects. Winningham, John
Baumgartner, David Hoover, Peter Vargas, and the Mayor met recently to discuss the thoroughfare
road that will run through Allen Station Business Park and the Village at Allen development. Project
Twist -Off recently decided to increase their building footprint, which dictated the design of the
proposed thoroughfare road. The second building that Project Twist -Off is considering constructing
would be located near the creek on the eastern portion of the Allen Station Business Park tract. Project
Twist -Off is moving forward as planned, but the company does not want to announce the project yet.
Winningham also mentioned that he is working with David Hoover on issues related to multi -family
zoning. He noted that the transactions associated with the acquisition of land for the city service
center are now complete. Duke Realty's building in Allen Central Park is nearly complete and the
AFDC is assisting Duke with their leasing efforts. AFDC staff will be touring the new Bradford
project located at the corner of Watters Road and Raintree Circle tomorrow. Winningham also
mentioned that Dan Bowman continues to work to recruit data centers to Allen and will be attending
the upcoming meeting of the Dallas/Fort Worth Chapter of AFCOM.
Jennifer Grimm updated the Board on marketing activities of the AEDC and mentioned that the AFDC
newsletter will be finished and ready for distribution next week. She extended her apologies to the
Board for the last-minute cancellation of the tour of the Trademark development (due to rain).
Grimm updated the Board of the status of the new AEDC office lease, explaining that staff has
received a proposed space plan and are in negotiations with Trademark to lease 3,455 rentable square
feet in the Watters Creek at Montgomery Farm development. She anticipated that the lease will be
brought to the Board for approval next month. Trademark is currently offering the AEDC nine (9)
months of free rent. Carl Clemencich inquired as to how the AEDC would financially account for free
rent. Hammeke stated that the City of Allen Finance Department has not dealt with free rent in the
past and would need to determine an accounting method for this particular item.
Grimm mentioned that $21.90/square foot is the lease rate being offered by Trademark. Clemencich
noted that there are intangible benefits that accompany locating in the Trademark development,
including the benefit of being part of a premiere retail development.
Grimm noted that she is working with a couple of retailers that are considering locating to Allen. She
also mentioned that the Allen Hilton Hotel is unable to accommodate the needs of Market Street for
meeting space to interview and train their employees. Grimm inquired as to whether a city facility
might be available for them to use for this purpose. Vargas suggested that she contact Connie
Schofield to find out about other city facilities that might be available.
I 10. Scheduling of Next AEDC Board of Directors Meetine
The next Board meeting was scheduled for Wednesday, November 14, 2007 at 6,00 p.m.
Allen Economic Development Corporation
Regular Meeting, October 17, 2007 - Page 4
ll. Adjourn
On a motion by Tim Wood, seconded by Carl Clemencich, the meeting was officially adjourned at
7 10 p.m.
These minutes approved this 10 day of November, 2007
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Kurt Kizer, President
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Carl Clemencich, Secretary