Min - Economic Development Corporation - 2011 - 02/16 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, FEBRUARY 16, 2011
Board
Staff
Tim Wood
Robert Winningham
Susan Bartlemay
Daniel Bowman
Carl Clemencich
Ryan Shook
Gary Caplinger
Pete Smith
Scott Sutherland
Call to Order and Announce a
Quorum Present
Guests
Peter Vargas
Matthew Shoemake — Wham! Inc.
Nadeem Ahmed — Wlmm! Inc.
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
6:12 p.m. on Wednesday, February 16. 2011 at the AEDC Office.
1. Approval of Minutes of the January 19 2011 Regular Meeting
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously
approved the Minutes of the January 19, 2011 Regular Meeting as presented.
2. Approval of Minutes of the January 31, 2011 Special Called Meeting
On a motion by Gary Caplinger, seconded by Susan Bartlemay, the Board unanimously
approved the Minutes of the January 31, 2011 Special Called Meeting as presented.
3. Consideration of Incentives to Sunport the Retention and Exoansion of WHAM! Inc
Robert Winningham introduced Matthew Shoemake and Nadeem Ahmed, founders of
WHAM! Inc. Shoemake explained that he has worked and lived in Allen for many years and
has had a long relationship with the AEDC. Shoemake noted that Mr. Ahmed and he were
both involved in the formation of W iQuest Communications, growing the company to 120
employees in Allen.
Shoemake noted that he approached the AEDC Board in 2008 regarding his newly formed
company, WHAM! Inc. to request incentives to support the company's initial growth in
Allen. With the help of a $50,000 grant approved by the AEDC in October of 2008, WHAM!
AEDC Meeting Minutes
Februam 16. 2011 - Page 2
was able to locate into 1,500 -square feet at One Allen Center. Shoemake noted that they kept
costs and employment low during the first several years of the company's existence in order
to remain solvent in the initial research and development phases of their product.
The company has secured $1 million in funding from the Texas Emerging Technology Fund
(ETF) through the Governor's Office and $3 million in recently approved venture capital
financing from Palomar Ventures in California.
Shoemake thanked Winningham for supporting WHAM! in its pursuit of venture capital
financing by serving as a positive reference for the company. Shoemake's business plan calls
for WHAM! to grow from six employees to fifty employees with an average wage of
$120,000 over the next three years. The company also plans to begin production in 2011,
initially distributing its product through online retailers such as Amazon.com. Shoemake also
anticipates requiring additional office lease space by 2014 and would prefer that the company
remain in Allen in the future.
Convene into Closed Executive Session
The Board convened into closed executive session at 6:40 p.m. to deliberate real property,
commercial and financial information and economic incentives for the Consideration of
Incentives to Support the Retention and Expansion of WHAM! Inc.
IReconvene into Open Session:
The Board reconvened into regular session at 8:15 p.m.
4. Actions Resulting from Executive Session
No action was taken.
5. Discussion of Allen Indeuendent School District Career & Technology Center and other
Educational Challenges
The Board tabled this item to be revisited at a later date.
6. Aooroval of AEDC Financial Reoorts
Dan Bowman presented the AEDC financial reports. Bowman noted that the AEDC recently
made an incentive grant payment to Cisco Systems. It is anticipated that the AEDC will make
incentive grant payments to the Halo Group, Virtual Surveillance, Photronics. Experian and
Turrentine-Jackson-Morrow in the near future. Bowman noted that the AEDC has pending
grants for Mustang Technology and Project Pavilion that must be formally approved before
they can be paid. Bowman also noted that sales tax revenues increased 15% from the
previous year.
AFDC Meeting Minutes
Febnan 16, 2011 - Page 3
Robert Winningham noted that AFDC Staff plans to visit with Kevin Hammeke to discuss the
reserve fund that the AFDC must have in order to maintain its bond rating.
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On a motion by Carl Clemencich, seconded by Scott Sutherland, the Board unanimously
approved the AEDC Financial Reports as presented.
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
AFDC and upcoming local events. Winningham noted that a developer from Beijing will be
visiting the AEDC on Monday, February 21" to discuss investment and development options
in Allen. Winningham also noted that a data center group will be meeting with the AEDC on
February 17". The Cisco Systems project has brought much attention and interest to Allen
from the data center industry
Winningham noted that the Dallas Business Journal's Heavy Hitters event will be held on
April 281" at a site to be determined. Winningham also mentioned that the AEDC has
submitted Cabela's, Andrews Distribution and The Village at Allen as candidates for the Best
Real Estate Deals Awards, which will be presented by the Dallas Business Journal on
February 24ih at the Adolphus Hotel.
Winningham stated that the Watchguard Video Open House will be held on March 3rd, the
Dinner with Neil McCoy will be held on Friday, March 11'", and the grand opening for
Cabela's will be held on April 14'h The Board has been placed on the VIP list for the
Cabela's event.
8. AEDC Executive Director's Report Regarding Office, Industrial. Data Center, Retail
Projects, and Local Partnerships
Dan Bowman mentioned that Project Red, a 450 -person call center, has identified Allen as a
finalist location. The company has selected 505 Millennium, the Sage Telecom Building and
Cornerstone Crossing as possible facilities for the new operation. Bowman noted that
Okmetic is considering an expansion in Allen, as well as the possibility of donating a tract of
land to the AEDC in exchange for tax benefits.
Robert Winningham noted that the AEDC recently paid its annual dues to the Allen Chamber
of Commerce.
9 Determine Next Meeting Date
The next AEDC Board meeting was scheduled for Wednesday, March 16, 2011 at
.i 6:00 p.m.
AFDC Meeting Minutes
Februan16. 2011 - Page J
10. Adioum
The meeting was officially adjourned on a motion by Susan Bartlemay, seconded by Carl
Clemencich, at 8:33 p m.
These Minutes approved this 16ih day of March 2011.
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Tim Wood, President Carl Clemencich, Secretary/Treasurer
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