Min - Economic Development Corporation - 2010 - 08/18 - RegularCall to Order and Announce a Quorum Present
With a quomm of the Board present, the Regular Meeting of the Allen Economic
Development Corporation (AEDC) was called to order by President Tim Wood at
6:10 p.m. on Wednesday, August 18, 2010 at the AEDC Office.
1. Approval of Minutes of the July 21 2010 Regular Meeting.
On a motion by Tim Wood, seconded by Gary Caplinger, the Board unanimously approved
the Minutes of the July 21, 2010 Regular Meeting as presented.
2. Consider and Take Action Regarding Companies in Non -Compliance with AEDC
Economic Development Agreements
Dan Bowman updated the Board on five companies that are in non-compliance with AEDC
Economic Development Agreements or City of Allen Tax Abatement Agreements for the
current tax year. Bowman noted that Applied Signal Technology and Cornerstone
Development have taken measures to correct the discrepancies in their minimum taxable
values in order to comply with their Economic Development Agreements.
Bowman mentioned that Amphenol Fiber Systems has an approximately $800,000
discrepancy in its taxable value. The company has indicated that this is the result of an error
in their property appraisal from a previous year and the fact that more of their inventory was
non-taxable than previously expected. Amphenol Fiber Systems plans to send representatives
to the September AEDC Board Meeting to discuss their non-compliance.
Bowman stated that Twin Creeks Hospital plans to pay approximately $70.00 to both the City
of Allen and the AEDC in order to maintain compliance with its Economic Development
Agreement
ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, AUGUST 18, 2010
Board
Staff Guests
Tim Wood
Robert Winningham Peter Vargas
Susan Bartlemay
Daniel Bowman Lee Battle
Guy Caplinger
Ryan Shook John Baumgartner
Maxine Sweet
Kevin Laughlin Eric Rose, Visitor
Carl Clemencich -Absent
Bryan Kasprowicz, Local Company
Call to Order and Announce a Quorum Present
With a quomm of the Board present, the Regular Meeting of the Allen Economic
Development Corporation (AEDC) was called to order by President Tim Wood at
6:10 p.m. on Wednesday, August 18, 2010 at the AEDC Office.
1. Approval of Minutes of the July 21 2010 Regular Meeting.
On a motion by Tim Wood, seconded by Gary Caplinger, the Board unanimously approved
the Minutes of the July 21, 2010 Regular Meeting as presented.
2. Consider and Take Action Regarding Companies in Non -Compliance with AEDC
Economic Development Agreements
Dan Bowman updated the Board on five companies that are in non-compliance with AEDC
Economic Development Agreements or City of Allen Tax Abatement Agreements for the
current tax year. Bowman noted that Applied Signal Technology and Cornerstone
Development have taken measures to correct the discrepancies in their minimum taxable
values in order to comply with their Economic Development Agreements.
Bowman mentioned that Amphenol Fiber Systems has an approximately $800,000
discrepancy in its taxable value. The company has indicated that this is the result of an error
in their property appraisal from a previous year and the fact that more of their inventory was
non-taxable than previously expected. Amphenol Fiber Systems plans to send representatives
to the September AEDC Board Meeting to discuss their non-compliance.
Bowman stated that Twin Creeks Hospital plans to pay approximately $70.00 to both the City
of Allen and the AEDC in order to maintain compliance with its Economic Development
Agreement
AFDC Meenng Minules
August 18, 2010- Page 2
3. Consider Approval of Funds Toward the Construction of a U.S. Highway 75 Acceleration
Lane.
John Baumgartner presented a plan to construct an acceleration lane to help facilitate the
increase in traffic that will result from Cabela's new Allen location. Baumgartner stated that
the total cost of construction is estimated to be approximately $200,000 and Cabela's has
agreed to pay half the total cost. Baumgartner proposed that the remaining cost of the project
be split between the City of Allen and the AEDC.
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board
unanimously approved funding the construction of an acceleration lane on U.S. Highway 75
in the amount of twenty-five percent of the total cost of the project up to $50,000.
4. Consider Approval of a Joint Agreement by and between the AEDC City of Allen and
Aerial Spins.
Dan Bowman updated the Board on a proposed agreement between the AEDC, City of Allen
and Aerial Spins for the creation of an interactive panoramic map of Allen that includes aerial
images of various Allen locations. This map would be displayed on both the AEDC and City
of Allen websites. Bowman explained that the project would initially include seventy-two
panoramic maps with icons for community facilities, tourism destinations and commercial
building vacancies. The initial cost of the map to be created by Aerial Spins would be
$60,000, with a recurring $7,500 annual maintenance cost. The costs would be split evenly
between the AEDC and the City of Allen.
Tim Wood inquired if businesses would pay to have their information incorporated into the
map. Bowman responded that building owners would assume the cost of interior shots of
their buildings. Gary Caplinger and Susan Bartlemay inquired if the AEDC might receive
compensation in the future from businesses utilizing the map in order to recoup pan of the
initial investment. Robert Winningham agreed that it was worthwhile to investigate potential
financial benefits for the AEDC and City
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board
unanimously approved authorizing the Executive Director to negotiate a contract with Aerial
Spins in an amount no greater than $30,000 plus the cost of half the annual maintenance fee.
5. Consider and Take Action on a Recommendation to the Allen City Council for Approval
of the City of Allen Tax Abatement Policy.
Robert Winningham noted that every two years the Allen City Council approves the City of
Allen Tax Abatement policy. Winningham recommended extending the policy in its current
form, explaining that the policy has been very successful in past years.
On a motion by Maxine Sweet, seconded by Susan Bartlemay, the AEDC Board unanimously
approved a recommendation to the Allen City Council for approval of the City of Allen Tax
Abatement policy.
AEDC Meeting Minutes
August 18, 2010 - Page 3
6. Convene into Closed Executive Session
The Board convened into closed executive session at 6:55 P.M. to deliberate real property,
commercial and financial information and economic incentives for the following:
• Consider Incentives for the Recruitment of Project Mastermind
• Consider Incentives for the Retention and Expansion of Local Company A
• Consider Incentives for the Retention and Expansion of Local Company B
Reconvene into Open Session
The Board reconvened into regular session at 7,47 p.m.
7 Actions Resulting from Executive Session
On a motion by Maxine Sweet, seconded by Gary Caplinger, the AEDC Board unanimously
approved authorizing the Executive Director to negotiate an Economic Development
Agreement with Project Mastermind.
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board
unanimously approved authorizing the Executive Director to negotiate an Economic
® Development Agreement with Photronics to provide a $50,000 grant to assist the company in
locating a new biomedical division in Allen.
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Robert Winningham requested that the AEDC Board authorize him to extend the AEDC',
option to purchase land on State Highway 121. Kevin Laughlin notes that if an amendment to
the existing contract is passed, the Board can still authorize the AEDC Executive Director to
terminate the agreement prior to the next Board meeting if such action becomes necessary
On a motion by Susan Bartlemay, seconded by Maxine Sweet, the AEDC Board unanimously
approved authorizing the Executive Director to negotiate and sign a Fourth Amendment to the
Real Estate Sales Contract dated November 20, 2009 with Southern One Twenty One
Investments, Ltd. extending the inspection period to December 20, 2010, and closing date to
January 31, 2011, and further authorize the Executive Director to terminate said contract in
whole or in part on or before said December 20, 2010, without further action from the Board.
9 Approval of the AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. Bowman mentioned that Project
Mastermind has been included on the AEDC cash flow analysis as a pending project. He also
AFDC Meeting Minutes
August 18, 2010 - Page 4
stated that the AEDC expects to make payments to Cisco, KONE Elevators, and Homeland
Healthcare prior to the end of the current Fiscal Year.
On a motion by Guy Caplinger, seconded by Maxine Sweet, the Board unanimously
approved the AEDC Financial Reports as presented.
10. Discuss Administrative and Marketing Activities of the AEDC and Uncoming Local
Events.
Robert Winningham discussed the administrative and marketing activities of the AEDC and
upcoming local events. Winningham noted that the AEDC is featured in a half -page
advertisement in the program for the Chinese Institute of Engineers banquet, which will take
place at the Intercontinental Hotel in Addison on Saturday, August 21. He also noted that the
AEDC will host a real estate broker event at the B.B. King concert on Sunday, August 29 at
the Allen Events Center. Winningham invited the Board to attend the Tech Titans Awards
Gala on August 27 and the Taste of Watters Creek event in September. Winningham
mentioned that the AEDC will begin mailing the new Allen aerial map to brokers and
developers soon.
Peter Vargas and Gary Caplinger noted that the City Council Budget Retreat was very
successful. Vargas commented that the redevelopment of the Chase Oaks Golf Course is
going to occur later than projected. Lee Battle mentioned that a plethora of restaurants and
retail companies will be locating to Allen in the upcoming months.
11. AEDC Executive Director's Report Regarding Office Industrial Data Center Retail
Proiects, and Local Partnershros
The AEDC Executive Director did not report on any additional projects.
12. Determine Next Meeting Date
The next AEDC Board meeting was scheduled for Wednesday, September 15, 2010 at
6:00 p.m.
13. Adjourn
The meeting was officially adjourned on a motion by Maxine Sweet, seconded by Gary
Caplinger, at 8:30 p.m.
These Minutes approved is 15'" day of September 2010.
Tim Wood, President Carl Clemencich, Secretary/Treasurer