Min - Economic Development Corporation - 2013 - 03/06 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGUI.,AR MEETING
WEDNE'SDAY, MARCH 6, 01
Board
Scott Sutherland
Susan Bartleiriay - Absent
Greg Kennedy
Joey Iferald
Michael Schaeffer
Staff
Harry Whalen
Dan Bownian
John criven
Pete Smith
Call to Orderand AnnQUIlCe a )U0111111resen
Pt
Q� s
Guests
Peter Vargas
Lee Battle
Kevin Harnmeke
Greg Nelson
Jeremy Myers
Rick Cashen
With a quorum. of the Board present„ the Regular Meeting of the Allen Economic Developmeflt
Corporation (AEDC) Board of Directors was called to order by President Scott Sutherland at
6:03 p.m. on Wednesday, March 6, 2013 at the AEDC.` Office,
On as motion by Greg Kennedy, seconded by Joey Iferald, the Board Unanimously approved the
Minutes of the �"ebruary 6, 2013 Regular Board Meeting as presented.
2. Consider. Ai9proval of Ainendi"nents to the AEDC B lans
Greg Kennedy introduced the discussion, cornmenting that the AEDC currently pays the City of
Allen $92,000 each fiscal year for city services. Mr—Kennedy questioned why the Bylaws
should be changed to specifically require the EDC' tar contract for city services, Peter Vargas
stated that during the Strategic Planning Meeting the City Council discussed this item. Mr.
Vargas also noted that the AFDC" has always used city services in the past and the Council would
like to elISLIfe that this is the case going forward,
It was also Proposed that the AEDC Bylaws be amended to state that the AEDC shallfollow the
Pers onnelPolicies of the City of Allen regarding employment issues. Mr. Vargas indicated that
this would ensure uniforinity between the City of Allen and the AEDC and would be beneficial
for the AFDC. The AEDC Board requested an opportunity to review the City of Allen Personnel
Policies and Procedures,
The consensus, of the Board is to review the services provided to the AEDC by the City of Allen
and become familiar with city personnel policies prior to makiflg a final decision on changes to
the Bylaws.
On it motion by Greg Kennedy, seconded by Joey Herald, the Board UnaninIOUSly agreed. to table
this itcal.
AEDC Meethig Minates
March 6�, 2013 - Page 2
3. DiSCLUSSiOn and Approval of Second Amended and Restated EconoLnic D
sor to C.ovennita 11 DT R/Trademark
Mopjjorn,��Fqrg
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Peter Vargas provided background, information regarding the Econornic Development
I
Agreetnent with Watters Crock owner LI.C, Trademark, the developer of Watters, Creek, has
indicated that they will not meet the development deadlines stipulated in the agreement and has
requested that the agreement be amended to eliminate the requirement for additional
development. Mr. Vargas noted the city agreed to cooperate with Trademark and revise the
terms of the agreement to eliminate certain development requirements and also decrease the
incentive payment clue to the company, Several changes have been proposed to the provisions in
Phase I and Phase II of the development.
On a motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanitnously
approved the Second Amended and Restated 'ELo n o rnic Development Agreement with Walters
Creek.
4. Presentation of AllcnPlace Development by'"friad Partners
Greg Nelson of Triad Partners updated the Board on the development of the AEDC-owned 18.5
acres located in MilleninuraTechnology Park. The proposed development would be called
AllenPlace and would consist of three (3)126,000 -squat -e foot three-story buildings and one
90,000 -square foot four-story building, This Class A office park would contain as conference
center, fitness facility, dry clearri n.g service, parking garages and covered walkways, The lease
rate will start at $19.50 per square foot plus electric and increase to the $20+ per square foot
range.
Jeremy Myers with Triad Partners will be located in the Dallas area and represent Triad Partners
locally. Ben Appleby with PM Realty will be the broker- for the project, and will assist Jeremy in
niarketing the property. Financing is available for the project and the potential lenders, have
requested thatthe first. building be 30 -percent preleased before Triad breaks. ground. It WOUld
lake 12-14 months to build the first building.
Harry Whalen stated the AEDC has discussed providing the ]arid to Triad at no cost initially,
with `triad Partners paying the AEDD C for the land, after the building is, completed. AEDC Staff
has three significant company leads with an interest in leasing space at AllenPlace. These
projects expect to lease space within the next eighteen months.
5. DiSCLISSion and 6Lppra'rwralmm¢ Site Assessment Studies to Provide Certified Site Staatus, for the
Alle.litowne Mal I LLC-(Ejq� jjjjliuglies 1
t�qq) !,,ocate�0-4t the SouthwestQ jrdj-ant of US 75
and SH 121
Harry Whalen shared his plan for Site Certification of cornrnercial land that. is available rot,
development in Allen. Mr. Whalen presented a comparison between as certified land site in
North Carolina and a site on SH 121 in Allen. Certifying a parcel of land would provide AEDC
I
prospects with all of the details required to make as decision regarding, as given site, In reference
AEDC Meering Minute's
March 6, 201'3 - Page 3
to p'ro'ject ' Azalea, this infotInation. would have been beneficial 'to provide to the site COnRlltaS
nt
when they toured the Howard Hughes site in September of 2012.
It has been proposed that the AEDC pay to have the Howard Hughes site: certified and be
reimbursed by the owner within two years. QL10teS for the certification of the Howard Hughes
site are being obtainect from several engineering firms. Tho Texas Economic Development
Corporation (TEDC) is in the process of creating site certification standards for the State of'
Texas. Joey Herald cominented that Allen's standards should match the standards used by the
state, Greg Kennedy agreed that certification would help assure that Allen sites are competitive,
On as motion by Michael Schaeffer, seconded by Joey Heral,d, the AEDC Board Linanirliously
approved contracting for site assessment studies to provide Certified Site Status for the
Allentowne Mall LLC (Howard HughesTract) located at theS011thwest quadrant of 1.1S 75 and
SH 12L
6. Convene into Closed Executive Ses,,J011: PLU-SUallt to Texas Government Co(
je, Section
55 L.0.8.7- Deliberation of Economic Development Negotiations: To Deliberate Commercial
and Financial Information and Econornic Incentives for theoljowvin �u
• Consider Incentives for the Recruitment of Project Brew
• I.Jpdate and Consideration of Incentives for Project Global Data, Pr(jject Diverse arid
Pro.ject Mascot
Reconvcrac intra CJ u n essi n:
,rhe Board reconvened into regular session at 7:55 p,m.
7. A..ctionsResultinig froln Exect, Live -,Scs�siop
No action taken
8. DiscUssion of AE C �Partic . p�t kjq in Allen ,..1 f, Celebrzition Event
. .. . .......
flarry Whalen provided backgrOlUnd on AEDC involvement with Allen"s Fourth of July event at
Celebration Park. In the past, AEDC Staff hosted a booth and gave away promotional items.
AEDC sponsored the event with as donation of $5,0100 and received 5 tickets arid access to the
VIII tent for marking purposes.
t�
Mr. Whalen noted that Scott Sutherland would like the Bc)ard to review this event becaUSC tiler
is not as direct return on investment four this rnarketing activity. The Board agreed that this is as
worthwhile coin.munity event that contributes to (lie well-beinCP a of Allen and therefore AEDC!
should C011til'ILIC to be a sponsor,
Oil as motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanit-nously
approved the Al"'DC sponsorship of the Allen USA Celebration Event,
AEDCMeetin,; Minwes
blarch 6, 2013 - Pa,ge 4
9. Presentation of the 2013 AEDC Marketing Agend
Harry Whalen presented the Marketing Strategy for FY2013. Applied Marketing has been hired
by the AEDC to identify prospects, leads, and projects. Meetings with these prospects will be,
scheduled to coincide with five annual conference events. Mr. Whalen explained that Texas has
two state inarketing agencies, Tearn Texas and TexasOne and the AEDp C has niernbership and
involvement with both agencies. In an effort to prudently nianage the marketing budget., the
AEDC staff evaluates each conference to determine the value it brings to the City o1" Allen. As
an example, staff has decided not to attend the Biotechnology Conference because it is not a
beneficial marketing event for the AEDC.
The AEDC will host, several marketing event.,; in Allen that, include luncheons, football and
hockey games, and the Texas Stampede. The focus oof these activities will be networking with
local brokers and developers, sharing real estate information and providing details on city
planning and zoning.
Greg Kennedy wants to be part of the budget and marketing process on a monthly basis to assist
in evaluating marketing activities to determine tile return oil investment (Rol). Mr. Kennedy
mentioned that 42 -percent, of the AEDC budget is spent on marketing and would like to see a
comparison of how other EDC's allocate their revenue. Joey Flerald stated that his job directly
involves marketing and he sees the benefit ofspending money on marketing activities.
In response to Scott Sutherland's question regarding how the current AEDC marketing schedtfle
compares to previous AED1 C marketing activities, Mr. Whalen indicated that the marketing plan
is very aggressive. It was noted that the targeted marketing expense is $280,000, well below the
$320,000 budget set by the Board for the CUTretit fiscal year. Mr. Sutherland asked Dan Bownian
which conferences have been the most worthwhile in tile past. Mr. Bowl-rian responded that
IMN, IC&C and Corel et conferences are afew of the more beneficial conferences.
Joey Herald noted that the AEDC Holiday Event was not included in this year's marketing plan,
Mr, Whalen stated that this event was not, the most effective use of the marketing budgeL Mr.
Whalen also did not renew the annual $11,000 contract for Floovers. Ryan'Tlhaip, with the
Dallas Regional Chamber, agreed to freely assist the AEDC with reports front I-loovers.
10. A rtrval of the AEDC Fin ane
ial Re,129�rt
Greg Kennedy presented [lie financial reports, sharing, inc orne and expenses on a monthly and
year-to-date basis, Mr. Kennedy pointed out that the nionthly budget is currently calculated by
taking the annual budget and dividing it by 12. This explains wily sorne monthly line items are
over budget, Mr. Kennedy, requested that the monthly budget numbers eventually be niore
closely aligned with the actual expected monthly expenses. Both the original format and the new
monthly format of the budget will be included in the financial reports going forward,
Mr. Kennedy plans to tneet with AEDC staff on a monthly basis prior to each Board Meeting and
with Kevin I larnnicke each quarter to, discuss and review the AEDC Budget. Mr. Kennedy's
(goal for the budget is to build positive cashbalances and allocate, some of those dollars for
Ln
developnient of the 121 Corridor.
A 1,,VC Meeting Min tues
Alarch 6, 2013 - Page 5
On as motion by Joey Herald, seconded by Michael Schaeffer, the Board unanimously approved
the AICA Financial reports , orts as presented.
,
11. AFDC: Report -Regarding Administrative andMarketing Activities of the AEDC, UpcoMLng
Local Eve iness Retention Proiects
Harry Whalen and Dan Bowrnan updated the Board on office, industrial, and retail projects. Mr.
Whalen mentioned that as roofing company is still considering leasing space at 915 Enterprise,
however the AEDC has not provided the company with an incentive offer, A west, coast based
C01,11pany with 40 fulltime employees plans tca relocate to Allen and the CEO of that company has
already relocated to the area. It was not necessary to provide any incentives to this coiripany, A
local Allen business niay be a great prospect for AllenPlace, along with an engineering center
requiring 100,000 -square feet.
Mr. Whalen will be attending the Industrial Asset Management Council (IAMC) Conference in
two weeks. On Thursday of this week, Mr. Whalen will be attending the Governor's Breakfast
in Austin and participating in the TexasOne Board of Directors Meeting.
12. Determine Next Meeting Date —.April_3, 013
The next AEDC Board meeting is scheduled for Wednesday, April 3, 2013 at 6:00 p.rn.
13. Convene into C losed Executive Session: Pursuant to Texas Government Code Sectio
551.074for Personnel Nlatter,s:
a. Discussion of Full -Time Economic Development Specialist Position
b, Discussion of the Duties and Responsibilities of the Executive Director
Reconvene into Open Session:
The Board reconvened into regular session at 10:35 p,ni,
Actions resulting from Executive Session — No action taken
14. Adjournment
On as motion by Jon ey Herald,, seconded by Michael Schaeffer, the meeting was adjourned at
10:36 p.m.
These Mina t�es approved this 3rd day of April 2013.
LC
Scott Sutherland, President Susan Bartlernay, Vice Preside, mm