Min - Economic Development Corporation - 2008 - 10/15 - RegularI ALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, OCTOBER 15, 2008
Board
Kurt Kizer
Tim Wood
Carl Clemencich
Gary Caplinger
Maxine Sweet
Staff
Robert Winningham
Jennifer Grimm
Daniel Bowman
Call to Order and Announce a Quorum Present.
Guests
Pete Smith
Peter Vargas
Joey Herald
Nicol Hebert
Ron Lacey
Richard Turcotte
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,
October 15, 2008 at the AEDC Office.
1 Consent Agenda
On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board voted unanimously to
adopt the consent agenda as follows:
1. Approval of Minutes of the September 17, 2008 Regular Meeting
2. Approval of Economic Development Agreement with Wham! Inc.
The motion carried.
3. Convene into Closed Executive Session:
The Board convened into closed executive session at 6:10 p.m. to deliberate commercial and
financial information and economic incentives for the following:
• Consider Incentives for the Recruitment of Project Natural
• Consider Economic Development Agreement with Celerity Inc.
• Consider Incentives for the Recruitment of Project PDC2
Reconvene in Ooen Session
The Board reconvened into regular session at 7.45 p.m.
4. Actions Resulting from Executive Session
No actions were taken on Project Natural and Project PDC2.
AFDC Board of Directors Regular Meeting
October 15, 2008 - Page 2
1 On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board unanimously approved
amending the Economic Development Agreement with Celerity Inc. as follows:
• Decreasing the required taxable value of the tangible personal property from $8 million
to $4 million
• Decreasing the required employment from 350 (of which no more than 100 employees
could be fulltime equivalent employees) to 300 (of which no more than 100 employees
could be fulltime equivalent employees)
5. Approval of AEDC Financial Reports
Daniel Bowman presented the AEDC Financial Reports. Kurt Kizer inquired as to whether the
ailing U.S. credit market would affect the AEDC's ability to borrow funds to finance future
projects. Peter Vargas noted that municipal bonds remain relative strong as municipal credit
ratings continue to improve. As of now, there is no problem with municipal borrowing. Carl
Clemencich asked if AEDC sales tax projections would be lowered for fiscal year 2009, given the
current state of the economy Vargas replied that the City was not changing the estimates at this
point in time, since local sales tax receipts are still being adjusted based on the new retail
developments recently constructed in Allen The City had projected an 8% increase in sales tax
receipts for fiscal year 2009. They will closely monitor the sales tax numbers on a monthly basis,
but there is not a need to make a decision regarding adjustment of the projections at the current
time.
On a motion by Carl Clemencich, seconded by Gary Caplinger, the Board unanimously approved
the Financial Reports as submitted.
6. Administrative and Marketing Activities of the AEDC / Executive Director's Report
Jennifer Grimm updated the Board on the marketing activities of the AEDC and invited Board
members to attend the Taste of Watters Creek event on October 23" Grimm also invited the
Board to attend the upcoming meeting of the AISD B.E.S.T Committee on October 23`d and the
Triad Meeting on November 3rd It is expected that the Triad meeting would be especially
pertinent to the AEDC, since economic development -related issues will be discussed.
Robert Winningham updated the Board on various projects, noting that the AEDC recently
amended the Economic Development Agreement with RESQdebt to lower the required
employment. RESQdebt had originally committed to creating 600 employment positions;
however, parking is only available for 500 employees at the new facility they will be leasing.
Maxine Sweet inquired as to what would happen if the parking at the facility is not sufficient to
meet the company's needs in the long run. Daniel Bowman suggested that the company may run
multiple shifts, allowing employees to work at different times of day and increasing parking
utilization.
7. Scheduling of Next AEDC Board of Directors Meeting
The next Board meeting was scheduled for Wednesday, November 19, 2008 at 6:00 p.m. Maxine
Sweet noted that she will be out of town on November W and unable to attend the meeting.
AFDC Board ojDrrectors Regular Meeting
October /5, 2008 - Page 3
8. Adioum
The meeting was officially adjourned at 8:01 p.m.
These minutes approved this 19n day of November 2008.
Kurt Kizer. Pr ident
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Carl Clemencich, Secretary