Min - Economic Development Corporation - 2013 - 06/05 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC")
BOARD OF DIRECTORS
REGIULAR MEETING
WEDNESDAY, JUNE 5,,2013
Board
Staff
Guests
Scott Sutherland
I'larry Whalen
i eter V,argas
Susan Bartlemay
Dan Bowman
Bo Bass
Greg Kennedy
JohnScriven
Joanne Stoelir
Joey I ferald
Tracey Cline
Michael Aubrey
Michael Schaeffer
Joe Gorfida
Dan Henn
Bob Robbins
Daniel McKinney
Cabe Chadick
John Allen
Ben Appleby
Jeremy Myers
Dr. Larry Holley
Call to Orderamid
With a quorum of the Board present, the Regular Meeting of the Allen Economic Developn-rent
Corporation (A DC) Board of Directors was called to order by President Scott Sutherland at 6:03
p.rn. on Wednesday, June 5, 2013 at the AEDC Office,
L APPLoval of the MinU CS Of tlaq MU 1 2013 egglIL Boarrd.Melipg
On a motion by Joey Herald, seconded by Greg Kennedy, the Board unanimously approved [he
Minutes of tl,,ie May 1, 2013 Regular Board Meeting as presented.
2. Convene into Closed EXCCUtive Session: pU rsuant.to, Texas Government
.. . ..... ....... ... ....... .—Code, Section 551-087,
Deliberation of Economic Q v - . .....
Commercial and Financial
In1Wta na< trcrra rnd Eco mic
nc ptives for the FoLIq
a. Consider Incentives to Retain and Expand a Local Allen Company
b. Consider Incentives for the Recruitri-tent of Project Med-Tech
c. Consider1ricentives for the RecIllitinent of Project Top l7loor
d. Consider incentives for the Recruit inent of Project Credit Card
c. Consider Support for a flotel Project in Watter's Creek
Reconvene into Open Session
The Board reconvened into I-CgUlar SCSSion at 9.17 p.rr),
AEDC Meeting Minutes
June 5, 2013 - Page 2
3. Actions,' S hi
jL—I", f0ru I XeCUtive Session
Re gj_
No action, taken
4,
Greg Kennedy presented the AED,C Financial Reports, Mr. Kennedy noted that the AEDC Budget
was revised by the City Finance Department, Revenue for the month was down 2 -percent, but Lip 4
percent year -to -dale, Operating expenses were up 7 -percent: year -to --date, but down 4 -percent for the
current month, Dues are down 14 -percent, for the nionthand over 10 -percent year-to-date. Grants
are under budget 4 -percent year-to-date because of'a credit aqjustnient of $52,000 related, to the
Cabela's,grant.
On a motion by Michael Schaeffer, seconded by Susan Bartleinay, the Board unanin-tously approved
the AEDC Financial Reports as presented,
5, to the AIDC' FY 20131: udpt
Greg Kennedy provided an overview of the FY 2014 Buciget and revisions to the FY 2013 Budget.
The FY 2014 budget will increase to $8.5 million in revenue with expenses of W9 rnillion. The
total AEDC Fund Balance is forecast to be $6.9 million. Salary and benefit expenses will increase
9.5 -percent. The biggest difference from the FY 2013 Budget is that operating costs will decrease
by $1,677,000,
Greg Kennedy requested the 2008/201,0 interest and bond rates. Joanne Stoehr with the City of
Allen Finance department will provide Mr. Kennedy with this infort-nation. The total bond debt is
$19 niillion with principal and interest al. $800,000.
On as motion by Michael Schaeffer, seconded by Susan Bartlernay, the Board unanitnously approved
the AEDC FY 20 114 Budget and revisions to the EDC. FY 2013 Budget as presented.
6. AM,royal of AE C" Personnel Poli
Joe Gorfida presented the ,FDC-" Personnel Policy. Mr. Gorfida changed the language rehated to the
UI R and Finance, departments. Holidays and all benefits will be the same as the City of fallen..
Discipline is handled by the AFDC, CEO not HR; the CEO can obtain advice from HR and the City
Attorney, The AEDCpolicy covers discrimination and harassment issues. The FarnilyNiedical
Leave Act (FMLA) is included in the policy manual.
Mr. Gorfida, noted the Board needs to make an), changes to the policy and then approve it. Greg
Kennedy inquired about,, the tnavel policy, Mr. Gorfida stated the travel policy as well as the
entertainnicut policy will be handled separ,"itely,
On as rnotion by Greg Kennedy, seconded by Michael Schaefter, the Board unaniniously approved
the AFD C Personnel Policy as presented.
A EDC Meeting Minutes
June 5, 2013 - Page 3
7. AEDCRepoi,-tReardirl&Aciiiirnist'ra,liveatidMark.etil,!gAct i„vibes ofthe A�ET)Cl�P� �llin�
Local. Events, Office, Industrial )ata Centel- Retail, and Business Retention PjaecLs
a,. AEDC Monthly Staff and Vacancy Reports
Harry Whalen and Dan Bowinall updated the Board, on office, industrial, and retail protects. Harry
Whalen and lean :f attended the ICSC conference in Las Vegas, According to Mr. Whalen,
the key contacts they rnet. with were developers from the Dallas area. Mr. Whalen spoke with
representatives from Denny's, Krogers and Toni Thumb, Kroger's located on Bethany Drive is
interested in acquiring the park near that store, butMr. Whalen learned that it is not for sale.
Mr. Whalen also attended theIMN Forurn in New York City. boring the conference, Mr. Whalen
discovered that a Frisco business may be interested in relocating their data center to Allen. Mr.
Bowman will be attending a conference in NY with TexasOne and Site Consultants,
AEDC' Staff met with a developer in Dallas to discuss plans for the AEDC-owned 23 acres in Allen
Central Park. This firm has as strong interest in office development witIl retail oil the .1" floor and
multi-farri-ily oil the back side of the property. The firm plans to propose 3 development scenarios,
although they have not been engaged in hotel construction.
Mr. Whalen commented this relationship will be different from that of the previous firm that wanted
$200,000 to proceed with the development in Allen ("entral Park, According to Mr. Whalen, the
new firin was quoted its saying, "We don't expect, to be paid for our business we do". 'rhe firm plans
on a five year build-OLIt, is expecting discounted land and wants to do an exclusive joint venture with
the AEDC. AEDC Staff has requested Board participation to provide input for this deal,
The firm is looking at as Master Lease; 18, 24, at- 36 months and would support a hotel with 250-300
rooms. I,Jsually the firm builds and turns properties in three years, Greg Kennedy suggested
obtaining three: proposals from the firm; then present these to the Board. AE,DC Staff has met with
rour developers, beat this is the only one that, can work this deal. Peter Vargas reconirnellded shari fig
existing concepts with the firm glue to the amOUllt of time and resources that have been in vested
previously. Susan Bart-lemay and Joey Herald expressed an interest in Participating with the AEDC
Staff in future nieetings with the firm.
b. Discussion of AEDC Board Planning Retreat
Harry Whalen stated his past experience with EDC' Board's always included, an annual Board
Retreat. The Allen AEDC Board has never held a retreat, Mr. Whalen likes an engaged Board, but
no[ one that micro manages the AEDC. Mr. Whalen feels the Board can provide valuable
inforn-tation to the AEDC thrOUgh their vision with the goal of establishing as strategic plan.
Mr. Whalen thinks a target date for the retreat would be in the ALIgUSt/Septernber thriefi-arrie. Scott
Sutherland prefers to meet in September. Peter Vargas tneritioned the Council Budget Retreat will
flernay, believe as brief tin-ic for tearn building wotdd be
he in ALIgLISt. Scott Sutherland and SusanBat-
beneficial to breakdown any barriers an(] help to foster Open CORIMUnication. Mr. Whalen suggests
holding the retreat on as Saturday.from. 8 AM to 2 PM,
AEDCMeeting Min ales
June 5, 2013 - Pap? 4
c. Discussion of AFDC Board Member Profile Response forCity Council
The Board discussed the 2013 Board Evaluation Form, 'I'lie Board made several reconn-riendations
and. comments. The Board believes there should be at least one female member. A Board Member
should be someone who has lived in. Allen for several years and will have the best, interest of the
City in mind. Also, an ideal Board Member would be someone from a larger corporation. In
addition, qualified Board Member,.; will have a solid financial background, business experience,
represent the demographics of the city and be a team player.
S. Determine Next Meeting Date — July 3, 2013 (Alternate Date: July 10, 2013)
The next AEDC Board meeting is scheduled for Wednesday, July 10, 2013.at 6:0O p.m.
9.
Convene 'Into Closed 'E',"xecutive Session: Pursuant to Texas Government Code, Section 551.074
..-
for Personnel Matters — Discussion of the Duties and Responsibilities of the ExeCUIi ve Director,
a. Annual Review for Harry Whalen, CEO
Reconvene into Open Session
The Board unanimously approved an increase in the base salary of 2% for Harry Whalen, CEO
retroactive to the anniversary date of April 16, 2013.
10. Adjournment
On as inotion by Joey Herald, seconded by Michael Schaeffer, the meeting was adjourned at:
11:26 p.m.
These.Minutes approved this 10"' day of July 2011
Waro
Scott: Sutherland, President U'S an Bartleinay, Vice Presidel