Min - Economic Development Corporation - 2010 - 09/15 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, SEPTEMBER 15, 2010
Board Staff Guests
Tim Wood Robert Winningham Peter Vargas
Susan Bartlemay Daniel Bowman Bo Bass
Guy Caplinger Ryan Shook Timothy Carr — Fiber Systems
Maxine Sweet Pete Smith William Guernsey—Fiber Systems
Carl Clemencich Rob Meche - Local Company
Call to Order and Announce a Ouomm 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
6:07 p.m. on Wednesday, September 15, 2010 at the AEDC Office.
1 1. Approval of Minutes of the August 18 2010 Regular Meeting.
Maxine Sweet noted that the motion from the approval of the minutes should be changed from
Tim Wood to Maxine Sweet. On a motion by Maxine Sweet, seconded by Susan Bartlemay,
the AEDC Bond unanimously approved the Minutes of the August 18, 2010 Regular Meeting
as presented with the aforementioned changes.
2. Approval of the Economic Development Agreement with Photromcs Inc
Dan Bowman presented an Economic Development Agreement with Photromcs, Inc. that was
drafted based on the Board's previous direction The agreement includes a grant reimbursing
the company five -percent of capital expenditures related to the project, not to exceed a total of
$50,000. Photronics must maintain two full-time employees in order to remain in compliance
with the agreement. Bowman noted that Phorronics would commit to fulfill these terms by
the end of the calendar yen.
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board
unanimously approved the Economic Development Agreement with Photromcs, Inc.
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AEDCMemng Minutes
September /5. 20/0- Page 2
3. Consider and Take Action Regarding the Economic Development A reement with
Amphenol Fiber Systems International
Bill Guernsey and Tim Carr appeared before the Board to explain the reasons why Amphenol
Fiber Systems International is currently below the minimum taxable value stated in their
Economic Development Agreement. The company is below the minimum taxable value due
to higher than expected inventory meeting the criteria for Freeport exemption, depressed oil
and gas prices, more efficient use of capital expenditures, and the relocation of a major client
as a result of an acquisition. Guernsey and Carr noted that the company has 140 full-time
employees, which is well above the minimum employment requirement of 125 full-time
employees.
Guernsey and Carr requested that the Board amend the Economic Development Agreement
with Amphenol Fiber Systems to adjust the minimum taxable value and increase the
employment requirement to ensure compliance in the future. Carl Clemencich noted that a
change in the Economic Development Agreement would only result in a loss of $24,000 in
revenue to local taxing entities and that the company has been a good corporate citizen of the
community.
The Board requested that the AEDC Executive Director negotiate a revised agreement with
Amphenol Fiber Systems International.
�t 4. Consider Amendment or Elimination of the AEDC Restriction Agreement for
® Approximately 1.449 Acres of Land Previously Owned By DBSI 121/Alma Land L.P.
on Alma Drive Near SH 121
Robert Winningham updated the Board on the AEDC Restriction Agreement related to land
on Alma Drive near SH 121, requesting that the Board consider amending or eliminating the
AEDC restriction agreement for the land previously owned by DBSI. The restriction,
implemented in 2006, requires that the land be used only for access to retail and office related
developments.
Winningham noted that the AEDC was working with a developer that was considering
purchasing the +/- 140 -acre tract previously owned by DBSI. It was requested that the AEDC
Board consider terminating the Restriction Agreement for the 1.449 -acre tract in order to
provide potential purchasers of the land greater flexibility in site -planning the overall
development.
The Board took no action on the matter at the current time
5 Convene into Closed Executive Session
The Board Convened into closed executive session at 637 p.m to deliberate real property,
commercial and financial information and economic incentives for the following:
• Consider Incentives for the Recruitment of Project Scout
• Consider Incentives for the Retention and expansion of a Local Company
AEDCMeetmg Minutes
September 15, 2010- Page
Reconvene into Open Session -
The Board reconvened into regular session at 7:31 p.m.
6. Actions Resulting from Executive Session
No Actions Taken.
7 Approval of AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. Bowman mentioned that the AEDC will
be under -budget on operating expenses for the 2010 Fiscal Year. Bowman noted that the
AEDC anticipates making Incentive Grant payments to Cisco Systems, KONE Elevators and
Homeland Healthcare by the end of the current Fiscal Year. He also noted that the last
incentive grant payment to Wham! will occur in October, 2010. He also mentioned that the
sales tax revenue for the current fiscal year is up 12 -percent from the previous fiscal year.
On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board unanimously
approved the AEDC Financial Reports as presented.
8. Discuss Administrative and Marketing Activities of the AEDC and Upcoming Local
Events.
Robert Winningham discussed the administrative and marketing activities of the AEDC and
upcoming local events. Winningham thanked the Board for attending the Taste of Watters
Creek event, and helping make it a successful promotional event for the development and
Allen Chamber of Commerce.
Dan Bowman and Ryan Shook presented the new AEDC website that was recently launched,
updating the Board on features including social media interactivity, maps, and incentive
information.
Robert Winningham announced that the AEDC has been notified that it will receive the
Community Economic Development Award (CEDA) at the Annual Texas Economic
Development Council Conference in Houston in early October for the Cisco Systems project.
Winningham extended an invitation to the AEDC Board to join the staff in Houston to help
celebrate this momentous accomplishment for the AEDC.
9 AEDC Executive Director's Report Regarding Office Industria] Data Center Retail
Projects. and Local Partnerships
IThe AEDC Executive Director did not report on any additional projects.
AFDC Meeting Minutes
Seplettber 15.2010 - Page 4
10. Determine Next Meeting Date
The next AEDC Board meeting was scheduled for Wednesday, October 20, 2010 at 6:00 p.m.
11. Convene into Closed Executive Sessmn: Pursuant to Texas Government Code Section
551.074: Annual Performance Review of the Executive Director/CEO
The Board reconvened into regular session at 7:31 p m.
12. Consider and Take Action Relating to the Annual Performance Review of the Executive
Director/CEO
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously
approved a motion to increase the base salary of the Executive Director/CEO, effective
October 1, 2010, and to award a bonus for meeting AEDC's annual goals.
13. Adioum
The meeting was officially adjourned on a motion by Tim Wood, seconded by Carl
Clemencich, at 9:18 p.m.
These Minutes approved this 20°i day of October 2010.
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Tim Wood, P sident Carl Clemencich, Secretary/Treasurer
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