Min - Economic Development Corporation - 2011 - 04/20 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, APRIL 20, 2011
Board
Staff Guests
Tim Wood
Robert Winningham Peter Vargas
Susan Bartlemay
Daniel Bowman Lee Battle
Carl Clemencich
Ryan Shook Joey Herald
Gary Caplinger
Pete Smith Dan Rakieta
Scott Sutherland
Baron Aldrine — Project Lunchbox
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, April 20, 2011 at the AEDC Office.
I Approval of Minutes of the March 16, 2011 Regular Meeting
Susan Bartlemay noted that she was cited for the motion of the adjournment of the
March 16, 2011 Board meeting; however, she was not present at the meeting. Ryan Shook
reviewed his notes from the previous meeting and noted that Gary Caplinger made the motion
for adjournment.
On a motion by Gary Caplinger, seconded by Susan Bartlemay, the Board unanimously
approved the Minutes of the March 16, 2011 Regular Meeting as presented with the
aforementioned change.
2. Approval of the Amended and Restated Economic Development Agreement with Halo
Group, Inc.
Robert Winningham updated the Board on the Economic Development Agreement with Halo
Group. Inc., indicating that the company has requested an amendment to the agreement.
Winningham noted that the company recently approached AEDC staff to discuss the
possibility of receiving a portion of the second installment of its grant payment, despite
having not yet reached the 160 employee benchmark outlined in the agreement. Company
officials claim that they currently employ 123 individuals in Allen, having created 33
positions above and beyond the 90 positions that existed initially They must still create an
additional 37 positions in order to meet the total employment requirement stated in the
agreement.
AFDC Meeting Minutes
4pril 20, 2011 - Page 2
The Halo Group has requested that the AEDC Board consider paying a prorated portion of the
second $75.000 installment of the grant, based upon the 33 jobs the company has created to
date. They have created 47 -percent of the additional employment and are requesting 47 -
percent of the grant, or $35.357
The general direction of the Board was to have AEDC staff further explore the financial
situation of Halo Group, Inc., and request that the company present a timeline outlining their
estimations for future job creation. No action was taken on this matter.
3. Consider Approval of Amending the Economic Development Agreement with Photronics
Texas Allen, Inc.
Daniel Bowman updated the Board on Photronics, indicating that the company recently
contacted the AEDC to discuss the status of its new biotechnology division. Bowman noted
that nothing has changed with regards to the company's intention to create and grow this new
division in Allen; however, it has taken the company longer to get started than originally
anticipated.
Bowman noted that Photronics had some internal priorities that required use of the company's
clean room space, making the space unavailable for use by the new division. As a result, the
company did not officially create the new division until April 4, 2011, roughly three months
after the required date of December 31, 2011, as stated in the Economic Development
Agreement. The company requested that the required date for creation of the division be
extended to May 1, 2011.
Carl Clemencich recommended that the date of creation be extended further than May 1, 2011
to allow the company adequate time to remain in compliance with the Amended Economic
Development Agreement.
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board
unanimously approved authorizing the Executive Director to amend the Economic
Development Agreement with Photronics Texas Allen, Inc. to extend the required date for
creation of the new division.
4. 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 Lunch Box
• Consider Incentives for the Recruitment of Project Red
• Consider Incentives to Support the Expansion of a Local Company
• Consider Incentives for the Recruitment of Project Global
• Discussion of Data Center Projects
AFDC Meeting Minutes
April 20, 2011 - Page 3
Reconvene into Open Session:
The Board reconvened into regular session at 8:27 p.m
5. Actions Resulting from Executive Session
On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously
approved an $800,000 incentive grant to be paid to the company on the following schedule:
$250,000 paid upon the receipt of a Certificate of Occupancy, assuming the
company has created a minimum of 400jobs in Allen
$250,000 paid upon the second anniversary of the company's receipt of a
Certificate of Occupancy, assuming the company has created a minimum of
600 jobs in Allen
$300,000 Paid upon the third anniversary of the company's receipt of a
Certificate of Occupancy, assuming the company has maintained a minimum
of 600 jobs in Allen
The Board further stipulated that the company meet the following requirements as a condition
of receiving the incentive grant:
• Company will execute a 10 -year lease for a minimum of 80,000-sf of space in
Allen. It is permissible that the lease include a clause that allows the company
to pay a penalty fee in order to terminate the lease at the end of the seventh
year.
• Company will employ a minimum of 600 employees
• Company will offer a comprehensive benefits and insurance coverage package
to its employees
• Company will invest a minimum of $2,900,000 in improvements to the
building
• Company will invest $1,200,000 in furniture, fixtures and equipment to be
located at the building
The Board also authorized the AEDC Director to negotiate and execute an Economic
Development Agreement in accordance with these terms.
6. Approval of AEDC Financial Reports
Daniel Bowman presented the AEDC financial reports. It is anticipated that the AEDC will
make incentive grant payments to State Farm, Photronics, and Turrentine-Jackson-Morrow in
the near future. Bowman noted that the AEDC has pending grants for Mustang Technology
and Project Pavillion that must be formally approved before they can be paid.
On a motion by Gary Caplinger, seconded by Carl Clemencich, the Board unanimously
approved the AEDC Financial Reports as presented.
AFDC' Meeting Minutes
April 20, 2011 - Page J
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 and upcoming local events. Winningham noted that the Cabela's grand opening event
was highly successful and very well attended. Winningham mentioned that the AEDC hosted
Cabela's management in the City of Allen suite for the Allen Americans game following the
grand opening.
Winningham mentioned that the AEDC, as part of the Collin County Partnership, will be
sponsoring the Dallas Business Journal Heavy Hitters of Commercial Real Estate Breakfast
on April 28th Winningham noted that the Annual CREW Golf Tournament that was
sponsored by the AEDC was a successful networking event. Winningham also noted that the
Top Golf grand opening event will be held on May 2P
Winningham mentioned that AEDC staff is in the process of completing an updated Allen
Demographics Book for marketing purposes. Gary Caplinger noted that Carl Clemencich did
a great lob representing the AEDC Board at the Cabela's grand opening. Caplinger also noted
that the Cisco data center grand opening was a fascinating event.
8. AEDC Executive Director's Report Regarding Office, Industrial Data Center Retail
additional
and Local Partnerships
No additional projects were mentioned.
9 Determine Next Meeting Date
The next AEDC Board meeting was scheduled for Wednesday, May 18, 2011 at 6:00 p.m.
10. Adjourn
The meeting was officially adjourned on a motion by Susan Bartlemay, seconded by Gary
Caplinger, at 8:50 p.m.
These Minutes approved this 18th day of May 2011.
Tim Wood, President Carl Clemencich, Secretaryfrreasurer