Min - Economic Development Corporation - 2010 - 03/24 - RegularH
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ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, MARCH 24, 2010
Board
Tim Wood
Susan Bartlemay
Gary Caplinger
Maxine Sweet
Carl Clemencich
Staff
Robert Winningham
Daniel Bowman
Call to Order and Announce a Ouomm Present
Guests
Kevin Laughlin
Peter Vargas
Joey Herald
Kevin Hammeke
With a quorum of the Board present, the Regular Meeting of the Allen Economic
Development Corporation (AEDC) was called to order by President Tim Wood at
6:11 p.m. on Wednesday, March 24, 2010 at the AEDC Office.
1. Approval of Minutes of the February 17 2010 Regular Meeting
On a motion by Maxine Sweet, seconded by Susan Bartlemay, the Board unanimously
approved the Minutes of the February 17, 2010 Regular Meeting as presented.
2. Approval of Economic Development Agreement with KONE Inc
Robert Winningham updated the Board on the negotiations with KONE, Inc. related to the
proposed Economic Development Agreement. He noted that Bo Bass, City Planning
Director, helped with zoning issues related to the project. KONE, Inc. was previously located
in McKinney, and the company approached the AEDC regarding the possibility of relocating
to Allen.
Daniel Bowman updated the Board on the terms of the agreement, noting that the company
will be required to maintain $6 million in business personal property value, lease space in
Allen for a 6 -year term, and maintain at least 73 employees in Allen
On a motion by Carl Clemencich, seconded by Gary Caplinger, the Board unanimously
approved the Economic Development Agreement with KONE, Inc. as presented.
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3. Convene into Closed Executive Session:
The Board convened into closed executive session at 6:20 p.m. to deliberate real property,
commercial and financial information and economic incentives for the following:
• Consider Incentives for the Recruitment of Project Quick
Reconvene in Open Session
The Board reconvened into regular session 7:07 p.m.
4. Actions Resulting from Executive Session
No actions taken.
5. Approval of AEDC Financial Reports
Daniel Bowman presented the AEDC Financial Reports. It was noted that the AEDC is
unlikely to pay future incentive grants to certain companies with which the AEDC has
economic development agreements, including Graphic Converting, Greenstreet, RESQdebt,
and Sanmina-SCI. The AEDC Board provided feedback on these agreements, and instructed
staff to go back and negotiate modified agreements with RESQdebt and Graphic Converting.
On a motion by Susan Bartlemay, seconded by Maxine Sweet, the Board unanimously
approved the AEDC Financial Reports as presented.
6. Discuss Future Development of S H 121 Corridor
Tim Wood recommended that the Board discuss this matter in more depth at a future AEDC
Board meeting. Wood indicated that he would like to make sure that the AEDC Board has the
same vision for SH 121 as the Allen City Council
Peter Vargas noted that the Frisco City Council recently indicated that it is not willing to issue
any additional debt to support the Arts of Collin County The Frisco City Council also
indicated that it will undertake an analysis to see if it can afford to issue debt. Vargas noted
that there is a very vocal group in Frisco that supports the Arts of Collin County, which may
help the project.
Carl Clemencich inquired if there was a timeframe for completing consnvction of the project.
Vargas noted that the donor that originally provided the land for the Arts of Collin County has
rescinded the caveat that the land must be returned to them if the building is not constructed
within 10 years of the donation date. This gives the Arts of Collin County additional time to
construct a facility
Mardi 24, 2010 -Page 3
Robert Winningham noted that McKinney recently announced that it will be setting aside land
for a corporate office park. The McKinney Economic Development Corporation sent out a
Request -For -Proposal (RFP) for a 100 -acre office park on SH 121. He believes the market is
not ready to support such a development, but it could in several years.
Maxine Sweet indicated that McKinney formed a new partnership with the express purpose of
helping to plan the SH 121 corridor. Sweet recommended that the AEDC visit with this new
partnership. Winningham noted that Allen is planned and positioned to help ensure that
landowners do not split up large tracts and sell off small portions for gas stations, self storage,
and other similar types of uses. Winningham agreed to discuss these issues with the Collin
County Marketing Team.
7 Discuss Administrative and Marketing Activities of the AEDC and Upcoming Local
Events
Robert Winningham updated the Board on the administrative and marketing activities of the
AEDC, noting that the AEDC is receiving a CiCi Award from Trade & Industry Development
Magazine for the Cisco data center project. Winningham also described the new AEDC logo,
and informed the Board that Sage Telecom recently relocated out of Allen.
Carl Clemencich and Peter Vargas noted that the Allen Americans Hockey Team recently
won awards among Central Hockey League (CHL) cities for the Best City, Best Logo, Best
Uniform, and Best Hotel.
Daniel Bowman noted that Richardson recently announced that Digital Realty Trust will be
constructing a data center park in the City. Winningham mentioned that Cisco recently had a
Topping Off lunch at its new data center in Allen.
S. AEDC Executive Director's Report Regarding Office Industrial Data Center, and Retail
Projects, and Local Partnerships
Robert Winningham did not report on any additional projects.
9 Scheduling of Next AEDC Board of Directors Meeting
The next AEDC Board meeting was tentatively scheduled for Monday, April 12, 2010. The
date of the next Board meeting is dependent upon the receipt of final documents for Project
Quick. Gary Caplinger requested that the AEDC take the Allen Americans playoff schedule
into account when scheduling Special Called meetings.
10. Adioum
The meeting was officially adjourned on a motion by Maxine Sweet, seconded by Carl
I Clemencich, at 7*47 p.m.
Anne 24. 2010 - Page 4
These minutes approved this 28°i day of April 2010
Tim Wood, President Carl Clemencich, Secretarya easmer
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