Min - Economic Development Corporation - 2007 - 11/14 - RegularA
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ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
Wednesday, November 14, 2007
Board
Kurt Kizer
Tim Wood
Carl Clemencich
Mark Pacheco —Absent
Maxine Sweet -Absent
Staff
Robert Winningham - Absent
Jennifer Grimm -Absent
Daniel Bowman
Call to Order and Announce a Quorum Present.
Guests
Peter Vargas
Pete Smith
Kevin Harrmeke
David Hoover
Kerby Smith
Bill Dahlstrom
Susan Singer
Landy Rodriguez
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 6:07 p.m. on Wednesday,
November 14, 2007 at the AEDC Office.
Consent Agenda
On a motion by Tim Wood, seconded by Carl Clemencich, the Board voted to remove Agenda Items
No. 2 from the consent agenda and adopt the consent agenda as follows:
1. Approval of Minutes of the October 17, 2007 Regular Meeting
The motion carried.
2. Approval of Economic Development Agreement with Sanmina, L.P.
No action was taken on this item.
3. Citizens' Comments
Kurt Kizer requested that Citizens' Comments not be included as an item on future AFDC Board
Agendas.
4. Approval of AEDC Financial Reports
Daniel Bowman presented the AEDC Financial Reports. Kevin Hammeke mentioned that any
references to debt payments for the Multi -Purpose Events Center should be titled `AEDC Series
2007/2008 Bonds' Hammeke also noted that debt payments for the Multi -Purpose Events Centers
will not commence until January, 2008. On a motion by Carl Clemencich, seconded by Tim Wood,
the Board unanimously approved the AEDC Financial Reports as presented.
Allen Economic Development Corporation
Regular Meeting, November 14. 2007 - Page 2
5. Approval of Revisions to the Economic Development Agreement with Montgomery Farm Garden
District. Ltd and Coventry 11 DDR/Trademark Montgomery Farm L P a Texas Limited Partnership
for the Development of Watters Creek at Montgomery Faren
Pete Smith, AEDC Attorney, updated the Board on proposed amendments to the Economic
Development Agreement with Montgomery Farm Garden District, Ltd. The amendments will provide
for the following:
• All of Emerson Partners' rights in the agreement will now pass to Trademark
• Adjust the outside date for the Completion of Construction for Phase I, II, and III from
October 1, 2013 to October 1, 2012
• Revise floor areas for Retail Phase I from 672,463 to 805,000 square feet
• Decrease the taxable value requirement for Retail Phase I -A from $49 million to $29 million
to reflect the taxable improvements and land that Trademark is responsible for and controls
• Decrease the taxable value requirement for the Garden District from $100 million to $80
million to reflect the taxable improvements and land that Trademark is responsible for and
controls
• Decrease the capital investment requirement for Retail Phase 1-A from $49 million to $29
million to reflect the improvements that Trademark is responsible for and controls
• Decrease the capital investment requirement for Retail Phase I from $100 million to $80
million to reflect the improvements that Trademark is responsible for and controls
• Revise required parking spaces to 1,985 (with Trademark responsible for 1,667 spaces)
Additional minor revismns to the agreement were also requested. Pete Smith explained that the
summary of proposed revisions that is being presented to the Board is accurate and reflects the
wording in the amended document. He recommended that the Board approve the agreement
substantially as presented. Peter Vargas noted that the AEDC Board would be given time to review
the full agreement and submit any minor changes to Pete Smith prior to the execution of the
agreement.
Kurt Kizer inquired as to why the required taxable value in the agreement is being decreased. Peter
Vargas explained that the project has been segregated into smaller components, with the AEDC
agreement only covering 62 acres of the overall project. The AEDC agreement had previously
covered 92 acres, which accounts for the decrease in the required taxable value. Kerby Smith
mentioned that Trademark is not increasing their total request, but simply requesting that the
requirements be prorated to fit the new scope of the project.
Kevin Hammeke noted that the TIF Board for this project has already approved a financing plan that
reflects the amended wording of the AEDC, ACDC, and City of Allen TIF agreements.
Kerby Smith, Trademark Property Company, stated that Trademark has invested $35 million in capital
improvements for this project to date. The company now controls all of the property down to the
Green Tract. Kerby Smith feels that the company will exceed the projections that were originally
presented to the City of Allen in December 2005. Trademark has secured a tenant that will have a
sales volume projected to exceed $1,000 per square foot. Approximately 300,000-350,000 square
feet of the development should be completed by the grand opening in April or May of 2008. Kerby
Smith also noted that the office component of the development is moving forward and Trademark
would enjoy having the AEDC as a tenant in the development.
1 Bill Dahlstrom, Attorney for Trademark Property Company, thanked Peter Vargas, Kevin Hammeke,
and Pete Smith for their efforts on the amended agreement. Peter Vargas recognized Kevin
Hammeke's efforts.
Allen Economic Development Corporation
Regular Meeting, November 14, 2007 - Page 3
On a motion by Tim Wood, seconded by Carl Clemencich, the Board voted unanimously to approve
the Amended and Restated Economic Development Agreement with Montgomery Farm Garden
District, Ltd. and Coventry II DDR/Trademark Montgomery Farm L.P., a Texas Limited Partnership,
substantially as presented, contingent upon the document being reviewed by the AEDC Attorney and
any required minor revisions being made.
6. Convene into Closed Executive Session
The Board convened into closed executive session at 6:59 p.m. to deliberate commercial and financial
information and economic incentives for the recruitment of Project Olympia, and to seek confidential
legal advice from the AEDC Attorney regarding the repayment of an AEDC incentive grant per an
Economic Development Agreement
Reconvene in Open Session
The Board reconvened into regular session at 7.47 p.m.
7 Consider and Take Action for the Recruitment of Project Olympia
On a motion by Tim Wood, seconded by Carl Clemencich, the Board authorized the Executive
Director of the AEDC to negotiate an Economic Development Agreement with Project Olympia based
on the Board's direction.
8. Authorize the Executive Director to Pursue Repayment of Incentive Grant From Local Business
Per Terms of Previously Executed Economic Development Agreement
No action was taken on this item.
9. Administrative and Marketing Activities of the AEDC /Executive Director's Report
Daniel Bowman invited the Board to attend several upcoming events, including the AEDC Christmas
Party and the City of Allen Boards and Commissions Dinner. Bowman also updated the Board on the
status of Sage Telecom, explaining that the company was recently purchased by an investment group
and is undergoing some changes. The company will be making some important decisions over the
next three months.
Bowman noted that Duke has executed leases on a total of 13,500 square feet at One Allen Center.
Duke is fairly certain that leases will be executed on an additional 9,000 square feet shortly. The
Common Park Area for Allen Central Park has been completed.
Bowman also noted that the Collin County Association of Realtors (CCAR) has not come to terms
with the Cottonwood Creek Baptist Church for the purchase of land at Stacy Road and SH 121 to
construct their office building. The company is now evaluating other sites, including the DBSI tract
located on SH 121.
No Marketing Report or Executive Director's Report was given.
Allen Economic Development Corporation
Regular Meeting, November 14, 2007 - Page 4
10. Scheduling of Next AEDC Board of Directors Meeting
The next Board meeting was scheduled for Wednesday, December 19, 2007 at 6:00 p.m.
11. Adjourn
On a motion by Tim Wood, seconded by Carl Clemencich, the meeting was officially adjourned at
7:50 p.m.
These minutes approved this 19' day of December, 2007
Kurt Kizer, Pres crit Carl Clemencich, Sec `��,°�
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