Min - Economic Development Corporation - 2010 - 04/28 - Special CalledCall to Order and Announce a Quorum Present
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
6:04 p.m. on Wednesday, April 28, 2010 at the AEDC Office.
1. Approval of Minutes of the March 24 2010 Regular Meetin
On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board unanimously
approved the Minutes of the March 24, 2010 Regular Meeting as presented.
2. Approval of Minutes of the April l2 2010 Special Called Meeting
Tim Wood noted that the Minutes should be amended to state that the Board convened into
closed executive session at 7 13 a.m. on April 12, 2010. On a motion by Gary Caplinger,
seconded by Maxine Sweet, the Board unanimously approved the Minutes of the April 12,
2010 Special Called Meeting with the change noted above.
3. Approval of Second Amended and Restated Economic Development Agreement with
Graphic Converting Inc
At the March AEDC Board meeting, the Board directed AEDC staff to negotiate an
amendment to the economic development agreement with Graphic Converting, Inc. The
purpose of the amendment was to eliminate the final installment of the incentive grant and
adjust the requirements stated in the agreement.
ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
SPECIAL CALLED MEETING
WEDNESDAY, APRIL 2S, 2010
Board Staff Guests
Tim Wood Robert Winningham David Hicks
Susan Bartlemay Daniel Bowman Andy Messer
Gary Caplinger Pete Smith Lee Battle
Maxine Sweet Peter Vargas
Carl Clemencich
Joey Herald — Ex -Officio Member
Call to Order and Announce a Quorum Present
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
6:04 p.m. on Wednesday, April 28, 2010 at the AEDC Office.
1. Approval of Minutes of the March 24 2010 Regular Meetin
On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board unanimously
approved the Minutes of the March 24, 2010 Regular Meeting as presented.
2. Approval of Minutes of the April l2 2010 Special Called Meeting
Tim Wood noted that the Minutes should be amended to state that the Board convened into
closed executive session at 7 13 a.m. on April 12, 2010. On a motion by Gary Caplinger,
seconded by Maxine Sweet, the Board unanimously approved the Minutes of the April 12,
2010 Special Called Meeting with the change noted above.
3. Approval of Second Amended and Restated Economic Development Agreement with
Graphic Converting Inc
At the March AEDC Board meeting, the Board directed AEDC staff to negotiate an
amendment to the economic development agreement with Graphic Converting, Inc. The
purpose of the amendment was to eliminate the final installment of the incentive grant and
adjust the requirements stated in the agreement.
April 28, 2010 - Page 2
Staff negotiated an amended economic development agreement that would provide the
following:
• Eliminate the final $200,000 payment
• Adjust the annual taxable value requirement to $3.5 million
• Adjust the annual employment requirement to 55
• Require that Graphic Converting, Inc. retain majority ownership of GC Packaging,
LLC
Dan Bowman explained that Graphic Converting, Inc. transferred assets related to its
collectable card business in Allen to GC Packaging, LLC (GCP) in exchange for 70%
ownership in GCP ColorDynamics, a commercial printing company located in Allen, owns
the remaining 30% of GCP
Wood remarked that this is a situation where the company has achieved roughly two-thirds of
their required taxable value and employment, and the AEDC has provided roughly two-thirds
of the grant funds originally stated in the economic development agreement.
On a motion by Maxine Sweet, seconded by Susan Bartlemay, the Board unammously
approved the Second Amended and Restated Economic Development Agreement with
Graphic Converting, Inc.
4 Approval of Mutual Termination Agreement with Green Shield Financial LLC
At the March AEDC Board meeting, the Board directed AEDC staff to negotiate a Mutual
Termination Agreement to terminate the economic development agreement between the
AEDC and Green Shield Financial, LLC. This termination agreement would eliminate the
payment of any future installments of the AEDC incentive grant to Green Shield.
Robert Winningham updated the Board on the company's situation, explaining that Green
Shield vacated 60,000 -square feet in Allen in 2009, bringing its total footprint in Allen to
approximately 22,000 -square feet. The company has approximately 100 employees in Allen,
but has not grown its employment base to the extent originally projected.
Sweet inquired if the buildings originally leased by Green Shield, at the corner of Ridgemont
Drive and US 75, are currently vacant. Bowman indicated that the 60,000 -square foot
building is completely vacant, but the 50,000 -square foot building is almost completely leased
by Green Shield and a variety of smaller tenants.
On a motion by Gary Caplinger, seconded by Maxine Sweet, the Board unanimously
approved the Mutual Termination Agreement with Green Shield Financial, LLC.
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April 28, 2010 - Page 3
5. Aooroval of Economic Development Agreement Between the City of Allen and the Allen
Economic Development Corporation
Winningham updated the Board on the Economic Development Agreement, explaining that
the AEDC is providing funding to assist with infrastructure projects that will benefit
important economic development -related projects in Allen.
On a motion by Susan Bartlemay, seconded by Maxine Sweet, the AEDC Board unanimously
approved the Economic Development Agreement between the City of Allen and the Allen
Economic Development Corporation,
6. Convene into Closed_ Executive Session
The Board convened into closed executive session at 6:12 p in. pursuant to the provisions of
Chapter 551, TEXAS GOVERNMENT CODE, Section 551.071 to seek legal advice of its
Attorney about a pending or contemplated litigation or settlement offer, regarding:
• ]in Mei Investment, Inc v Bank of America, N.A., et al., Cause No. 380-00650-2010,
380th Judicial District, Collin County, Texas
Reconvene in Open Session
1 The Board reconvened into regular session 6.52 p.m.
7 Actions Resulting from Executive Session
No actions taken.
8. Approval of AEDC Financial Reports
Bowman presented the AEDC Financial Reports. On a motion by Susan Bartlemay, seconded
by Gary Caplinger, the Board unanimously approved the AEDC Financial Reports as
presented.
9. Discussion of AEDC's Collaborative Efforts to Achieve Goals as Outlined in the City
Council 2010 Strategic Plan
Wood noted that the purpose of this discussion is to evaluate AEDC Board efforts to support
the Allen City Council Strategic Plan, identify areas on which the Board may need to increase
its focus, and identify areas where the Board is doing well. Wood would like the AEDC
Board to have clarity on its objectives.
Winningham stated that AEDC staff participates in the City strategic planning process each
year. The City of Allen undertakes a very unique and effective strategic planning process.
April 28. 2010 - Page 4
City and AEDC staff works in unison to further the strategic plan and help secure important
projects, such as the Allen Event Center, the Cisco data center and Cabela's.
Peter Vargas indicated that development along SH 121 continues to be a high priority for the
City of Allen and remains a primary focus for staff The Council gave staff four new
directives, and SH 121 was one of them.
Wood indicated that the economy has impacted the ability of the City to pursue certain types
of goals and priorities. Bardemay indicated that in past years, there was a lack of
communication and coordination between the efforts of the AEDC and the efforts of the City
That disconnect no longer exists, she stated. Vargas noted that there has been significant
communication between the AEDC and the City of Allen, which has been helpful to the
economic development process.
Clemencich thanked Wood for initiating this discussion, since vision and cooperation are very
important to the success of any city Wood noted that alignment on these types of issues has
contributed to Allen's success in recruiting commercial projects.
Winningham indicated that he has contemplated having a public forum to discuss potential
AEDC projects, but instead decided to use the City Council as a window to the desires of the
public. Bartlemay indicated that it would not be appropriate to discuss sensitive economic
development projects in a public foram due to many projects being under nondisclosure
agreements. Clemencich agreed, noting that sometimes companies do not want certain types
of information to be released.
Winningham stated that the AEDC office helps to facilitate economic efforts, such as working
with Cisco and Experian to get these companies involved with the AISD Career -Tech Center.
AEDC efforts to support workforce development are very important.
Wood noted that the AEDC has a much better partnership with the AND now Wood thanked
Winningham for improving communication with the AISD. Sweet stated that the AEDC
should work to persuade businesses to become more involved in the community.
David Hicks indicated that Allen has emerged as a city with a unified vision among the City
Council, AEDC Board, and staff. This unified vision gives the real estate community the
impression that Allen is an easy place to do business.
10. AEDC Executive Director's Report Regarding Office Industrial Data Center, and Retail
Projects, and Local Partnerships
Winningham did not report on any additional projects
11. Discuss Administrative and Marketing Activities of the AEDC and Upcoming Local
Events
Winningham updated the Board on the administrative and marketing activities of the AEDC,
thanking Clemencich and Mayor Steve Terrell for participating in the Dallas Business
April 28, 2010 - Page 5
�! Journal Heavy Hitters Breakfast recently. The Collin County Marketing Team, of which the
® AEDC is a participant, sponsored the event. AEDC staff will be sending congratulatory notes
to brokers that received Heavy Hitters awards.
Winningham noted that the AEDC recently redesigned its logo and printed stationery items.
The new logo points directly to the AEDC website, AllenTx.com. The NTCAR Expo is
coming up in August of 2010, and Dan Bowman will be attending the Bio -Tech Expo in
Chicago in May. Winningham noted that he monitors the AEDC conference list on an
ongoing basis and ensures that AFDC staff only attends conferences and meetings that are
worthwhile. For example, Winningham did not go to Denver recently because he did not find
the trip worthwhile due to meeting participant cancellations.
Winningham would like to create a scoring system to rate the success of AEDC recruitment
trips. This would help ensure that marketing dollars are spent effectively. Staff is also
working on an entertainment policy
Winningham also noted that the AEDC is a sponsor of Allen USA and will be providing an
inexpensive marketing item at the event. AEDC staff recently ordered USB drives, and
engaged with a local website design firm to help integrate social media into the AEDC
website.
Allen has received significant press from the recent Cabela's announcement. Bowman
updated the Board on data center projects, indicating that there has been serious interest in the
Ball Semiconductor building.
12. Scheduling of Next AFDC Board of Directors Meetine
The next AEDC Board meeting was scheduled for Wednesday, May 19, 2010
13. Adjourn
The meeting was officially adjourned on a motion by Cart Clemencich, seconded by Gary
Caplinger, at 7:20 p.m.
These minutes approved this 19'" day of May 2010.
�tJ
Tim Wood, President Carl Clemencich, Secretary/Treasurer
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