Min - Economic Development Corporation - 2009 - 02/18 - RegularALLEN F.('ONOMI ' DEVELOPMENT C-ORPORATION (AFD(')
BOARD OF DIRECTORS
REGULAR MEETING
WF.DNF.SDAY, FEBRUARY 18, 2009
Boat
Siall
Guests
Kurt Kizer
Robert Winninghom
Joey I Jerald
Tint Wood
Jcnnifcl Grimm
Cathy Dinkel
Cm'I Clemencich
Daniel Bowman
Pyrone Wilson
Gaty Qtplingel
Nete Sntith
Maxine Sweet
Call to Eder and Announce aQuo,11111 PI client
With a looumt of the Boaid pre>cnl, the Reg[dal Meeting ol'the Allen Economic Development
Cmpotnnou (AFDC') was called to oidel by husldenl Kid Kilo m 6:24 p.m. on Wednesday,
Febl only 18, 2009 al the AFDC Off ice.
1 1. Aj;pioval of Minutes of -the -Jammy 21, 2009 Recibir Mee
On it million by Maxine Sweet, econded by Call Clemencich, the Board unammously approved
the minuleS of the January 21, 2000 Regular Mccling as presented.
2 Itati llcalam of Pconnmic Ihyelopmmt Agicentent with Vaulh onics,.I,I ('
Gary Caplingcl inquired ih Vaul»onics, I.L(' was planning to occupy the emiro budding. Robert
Winninghaul noted that the company woUld occupy Iluce quarters of the building, with the
remainder of the building being occupied by it physivan's office. The company owns the entire
building.
On a lotion by Maxine Sweet, Seconded by Gary ('aplinger, [lie Board unnnimouxly approved
ratificn»on ofthe Economic Development Agteemenl with Vaullrones, LJ.('
3. C'onsidcr and lake Action_ iq Approval of I'urch[ue of F\CCmI\'C Pulse
Robert Winningh:un uowd that Business Rclenlion and Expansion is a kcy component of the
Allen City Council Strategic Plat, as well as one of the AFD("s key prim itics. With the current
dowiltuln in the economy and the slow growllt being expel fenced by most Allen contpmtic.,
Busnress ILelculion an[I lixpammn iv becoming a mole unpurlmtt Junction of the AI -.UC'
'file
1 AFDC nec[Is to know intpor tial details about local companies, includ mg the toning lin Icasc
expo atrntrs, employment needs, and plans fa fiiUuc grawlh. I be AP:UC s1alT cm icntly works to
uhedule monthly meetings wFh Incnl nnploya s, but ttndd use an ad[hhunal wwm ce such as
I:xcc Ul we Pu Ise to help coolhnale , clwit ics.
. I01C llnurd,# lhre I,., Regale, A/oeon,
I ' eb, m, I/S. 20(19 - l'ugv
Daniel Bowman described LXCCULIvu Hulse, ccononuc development son Iva Ie developed
specifically to heel the needs of the professional econoinic development community I he
solhva'e allows Ibe AFDC to coordinate its internal activities by organving projects, coil aces,
[asks, and meetings. Each local Allen employer is entered late the syslem as a sepmate project,
and meetings, tasks, contacts, and olha pertinent infnrnnalion ac tracked through the system.
I he AE'DC call also track new business prospects, which are filler converted to 'existing
businesses' if and when they choose In locale in Allen.
'I lie software Would allow each AFDC stat nromben to input the relevant information regarding
their specific work nn individual projects, solid tasks out to other staff members, and ensure Ihnl
their efforts ore cooldmated with eweyone else in the office 'Phe system allows for extensive
surveying and reporting, so the AFDC can bend keep track of company infomnatioo and Ieport
the tangible results of AFDC staff el'fon its.
Cal I Clemencich noted that the sof ware seemed usoftil. (nary Caplinger inquued as to ehelbe
AE.DC staff had checked with other 1'exas economic developers that were using the software and,
If so, o'ha( they had to stiv about the usefulness of file product. Fo vnimi noted that he had talked
With a couple of Texas economic developers that provided glowing acvicW> of'the sufhvauc
Kurt Kizm noted Thal he needed mole infounauon in oidm'to detei mine it the snilwarc would be
worth the cost of approximately $10,000. Caplingei agreed, requesting that AFDC staff
undei take additional research to dem mine other economic developers that me using file software,
and plastic the possibility of hying the enflwaic on a tenpoouy basis before purchasing
Bowman noted that the cost of costomizing the sothvare may make it cost-prohiblive fur the
developers of Exeentive Pulse to alluW the AFDC temporny access to the full product, but lie
would definitely check on the possibility
'I he general consensus of the Iluard was to have AFD(' staff hr iog the den back to the Board is
the point whew the additional newarch had [cell cnnq)leold
4 Utimidcr and fake Action @n Apgrnval of Assignment of Ilse Final Incentive Payment fol
Greens(reet FuJ)caiies of'_] exmLl,C In the Bank of the O'arks
Robed Winningham explained Gicenstecl Properties has contacted the AFDC still'[ to sec it the
Baud will ennsider assignment otthe final installment of $375,000 to the Bank of the Ozarks
Bank of the Oruks is considering taking (irecnstrcel's conduction loan, as the pmvmus lenders
have dissolved.
It was noled that Ilse Boar',] previously approved early payment of $375,000 of the economic
development giant to he provided to Oteenslrecl Rnpettics per the Fconoaic Development
Agreement between fine Ali DC and (iaccnslrcel Progenies ol`Pcxas, LEC I his agreement.
which stipulates a lolal mnentive pa}inenl ill $1 million Gum AIDC when all the tern hake
been me, was assigned to Greensuecl by Bloc Star, the previous developer ofthe connnmcial
property located at SI 1 121 and Waucis Road
Winningham mentioned that, under the conenl terms of the agnecmenl, the company now
construct 75,000 square feel of new tela) space oil of before January 31, 2011 in oiler to receive
the final payment of $375,000. Article 3 1 ol'the Amended and Restated I'conomic Development
Agreement between the AFDC, Bloc Slip Land and (heensticet, dated December 12, 2006,
staled that [lie company world not be allowed In assign the agreement to it financial institution.
I LDC Rom J n/Un rr/are Regulw Aleelmg
hehr'um 1, LY, _'009 - P,Nv 3
Kort Kim inquired as to whether the AI'I7Cwould be at risk if the company were to not perforin
ace ur dung to the Icqu u e nt cats of the aflec nt ell Pete Smith noted that in the event Ihat
(ireensheet does not perloini. the bank will request Ihat the AFDC send notice and provide an
oppo tunny to cmc Deal nig with this Ill hd party wdl complicate the Ii ancaction.
Jenndcr Grimm noted that AFDC' stall has not received Iced back Ilom Suikz regm'ding the
proposed Economic Development Agrccmcal. Grimm was under the impression That when the
Board oa'iginally drafted (lie Economic Development Agreement with Gicemitect Properties, the
Board had explicitly slated (hat they did not want to assign the agreement to a diffclent developer
at any point ill Ilic f ttm'c.
Pete Smith noted that there is a dilfercnce between assigning the entire agreement to the bank and
pledging the payment of the final incentive payment to the bank. fhc assignment of the full
agreement involves the I allsicr of all the rights and respoosibilities under the afreemenl, whereas
simply assigning payment of the final incentive grant to the book would still leave Gieonsn'ecl
responsible to fulfill their obligations under the agreement
No action was liken on this mem.
5 CORMIC into Closed E.\eCntlVe Session:
I lie Boaid convened into closed executive session at 7 05 p.m to deliberate commercial and
1 linanead inlbl'nrltion mrd econonuc incentives lin the Retention and P<p imion of Local
Businesses
Reconvenc in Coen Session
I he Bored rccorrvcned into regular session a( 7 58 p nt
G Ac_lions Reslillmg fall H>nvtivc Session
No actions Weic taken on the dean discussed is executive session.
7 Approval of Al'.DC I_inancial_Repoi is
Damel Bowman presculed the AFDC hmancial Reports The Buaul discussed the slate of the
Walters Creek devclopntmm. Robe't Winningham indic:mcd Ibal the Jevelopmcnl has been
allected by the economic duwn(uun, but remains msdrcnl m light of the situation. It was noted
that the restaurant NAAN is no longer a tenant in the development Ott a motion by Carl
C'lemencich, seconded by I uu Wood, the Bowd approved da AR.DC financial repo is as
prescrded
g. Discos Adminisbative and Marketing Activities of the ALD( and I Ipcuni ng local Events
Jennilct Gi inun updated the Board on the mar kclmg actit ilics of the Af.IA: and invited Board
members to attend the Wl LAM Inc open house on March 12, 2009 (it intm noted that the
AFDC has hosted it number of suable business pmspecls over the past alunlh, which indicates
that Aller is generally seen as a posilmc place to locate.
: I1i1)C ltuor J n/ pn rr(rn r Re,¢u1m dlerlm.K
A•dr oar i /3, 2009. Page J
Glinun also invited the Board In attend the Topping-OfI event lin the Miunot Coralvind Hotel on
Peer unpy 26"', as well as Ilie Rest Real Isore Deals event hosted by Ilie Da//us Una meas dounud
Oil Fdoliaiv 26' Allen has two sepia ale projects —I lie Village at Allen and Fairview, and
Watters Ch cek al Montgonnery I arm — that have been nominated tit aw•at(is, The Ci ), is moving
forward on schedule with the const action of the Allen Fvem Centel, The manager Ihat
previously managed the American Air fines Centel has been hired it, manage the Allen Event
Centel,
Grimm noted Ilia( the AFDC Is moving futwaud In oiganiiiug:m event that will be co -hosted by
Bradford Prupeities and the Allen Phdhai ounic Symphony oil April 17"' The event will
showcase [lie 'I\win Ci eeks Business Centel development Robert Winningham noted Thal
Jenmt'a Grinun hos been commended lin her svurk to assist with the organization 01'Ihc CoicNet
Global Sunurul Babeque to be held in Dallas It April.
9 AFDC Executive Director s Report Repidi ig Office. Industi ial, DataCenterand Retail
Ih_o ects and Local Patoerxhips
Robert Winningham updated the Board en the Slntu%of various projccls, uxphniaing that it was
recently announced Ihal Piojccl Lavender will be localing in Oklahoma. Although it is
disappointing to have lost the deal, Spring Air site consultant Vicki I lotion has agreed to visit
with AGDC MOT in 6 weeks to discuss the project and outline the factors that were taken into
consideration when evaluating the Allen site lot the poijecl. It was noted that Oklahoma has a
very strong program fm recruiting these types 01'pr0jects (nary C'aplmgel mentioned that there is
as existing 301,000 -square foot building located in Oklahoma ncai Interstate 35, which was a
major atlmclion I'mSpring Aur Winningham stated that (lie process of parsmng Picket Lmvenderr
was a positive one lot (he AIMC.
Winningham also noted that At UC stall had good inlel actions wall the members of the I'cx.rs
Slate LegisImut e during the Iecelrt I exas P.conum is Develuptell l COU lie iI ( IT IX Legtslalivc
Conlcrence the I'.emumuc Devclupoeru Subcommittee for [lie 'I'exos I louse of Repiesenlntives
was u ccently appoiuled. Winningham ouI ked on several legislative issues, including obtaining
Nide money Im the Allen ISI) C'aicer-Tech (enter, moniloing h:uupurlation bills that would
give local mamma 11 res more flexibility m undctlakc hanspotlmion projects, tracking legislation
Ihn( could change the'feaas Prmchisc'fox. and tacking hills that affect the Im s Entetpnse
Fund (TIT) and the Skulls Development fund (S)P) Winningham is hopeful that the I I'I and
SUP wBl be funded Im the upcommg biennium, In ganer'al, legislates ate wmlching revenue
streams my cmefully and will be very selective in thou' use of uaccolices
Damsel liowmmn mentioned that it has been putposcd by several legislalous that the Slate focus its
incentive lunds priunal ly on renewable encigy projects Winningham noted dial the City and
AP.DC are actively looking for 01)1)01'IuniticS to ohtam fala'al SlllanlaS dollars for Allen
10 Schcdulirg uf'Ncxt At.[)(: Bonn i_ of Uueclors Mecline
the next 130ard meclung was scheduled for Wednesday, Minch 18, 2009 at 6:00 p in
ICU(' E.., vd u/ Dh e, lura Ragulw A/conn.,
/-,,I .. ..... r /.Y, 2009 - Peyer i
I1 Adjourn
'I he meeting wa%Officia l ly adjnuined on a motion by 1 im Wood, seconded by Maxine Sweet, of
7.'_G p in.
I hew minoteS approved this 18"day of Minch 2009
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