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Min - Economic Development Corporation - 2013 - 10/02 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AE,DC) BOARD OF DIRECTORS REGULAR MEETING Board Scott Sutherland Greg Kennedy . Joey Herald Michael Schaeffer Jeff Burkhardt WEDNESDAY, OCTOBER 2, 2013 Staff Harry Whalen Dan Bowman John Scriven Pete Sinith Call to Order and Announ�e a _Quonnil PrcsMt Guests Mayor Terrell Gary Caplinger Peter Vargas Kevin 1-laninicke cicorge'ran ghones Ruben Alvarado J in Kang Greg Nelson Ben Appleb�y With a quorum of the Board present, the RCgUhIr Meeting of the Allen Econornic Development Corporation (AE,DQ Board of Directors was called to order by President Scott Sutherland at 6:02 p.m. on Wednesday, October 2, 2013 at the AEDC Office. 1. roval of the Minutes of the Senternber 42013 Regular Board Meq tJM _ On, a motion by Greg Kennedy, seconded by Joey Herald, the Board tin,anfinously approved the Minutes of the September 4, 2013 Regular Board Meeting as presented. 2. Welcome to New AEDC Board Mernber - JeffBurkhardt Board president Scott Sutherland welcomed Jeff Burkhardt to the AEDC:" Board aurid said tile Board will setup informal meetings with Mr. Burkhardt as everyone's schedule allows. 3. Convem., Into Closed Executive 5-cssiQj];-Pursuant to'l'cxas Government Cok.Section 551,087; Deliberation of Econonmic Development Negotiations: To, Deliberate Coimnercial and Financial Inforrnation and Econon-ric Incentives for the Followin& a. Consider Incentives to Support the Recruitment of Project Cellular bConsider Issues Related to the Development of AllenPlace Office Center c. Consider Incentives to Support the Retention and Expansion of a Local Business d, ConsiderIncentives to ,Support the Recruitment of Project Television e. Consider ISSUes Related to the Developnient of Allen Central Park. Reconvene into Open Session The Board reconvened into regular session at 994 p,rn. AEDClAveing lfintete%� Ocloher 2, 2013 .- Page 2 4. Actions Result'ji1gfronn Executive Session On as motion by Jeff Burkhardt, seconded by Michael Schaeffer the Board authorized the Chief Executive Officer to negotiate and execute an incentive agreementwith CVE GroupInc conditioned on the company leasing and occupying at least 45,000 sqUare feet of space at 915 Enterprise AIICD, Texas, to provide an incentive 'based oil the number of full tiaras eiriploynient positions at the Allen location. 5. Afwroval oftlicAEDC Financial R�c)oqS Greg Kennedy presented the AFDC Financial Reports. Income for the month was 2 -percent under budget on sales tax, but according to the sales tax analysis incorne- is I -percent ahead of budget year- to-date. Mr. Kennedy stated the estimated annualized sales tax incoine is just below $8,000,000, Mr. Ken aedy noted that expenses were up for some line items, Such as, Texas Municipal Retirement System (TMRS), because there were three pay periods during; the month or August, Rental & Leasing and Office Supplies were over budget, but Mr. Whalen has mitigated any additional office supply expenses. Mr. Kennedy reminded the Board that September expenses will still be coming out of the budget for the current fiscal year. Total operating expenses were over budget for the month dric to fill] time salary allocations. Regarding incentive grants, $1,000,00O came OUtfor tile water arid sewer infrastructure payrnent made to tyre City which is a transfer to Cabela's. Year-to-date rants acre at $2.9 million out of $4.4 million in the budget; tile difference is the $2.2 million for Cisco. The grant f"or Cisccca has not been paid out and it is not anticipated that it will be paid out at least in the Current fiscal year. In an effort to make the financial report easier to read; the total expenses, total income and net operating income items were added at the end of tile report. The forecast for FY2013 shows an actual amount of $5.7 million on an $8.5 million budget. Total ineorne is close to the forecast amount and [lie net, operating income shows the actual aniorint compared to the variance in the forecast, Mr. Schaeffer AlggOted that with the actual budget.just under $8 million and the forecast at $8.5 million the half million dollars variance should be reviewed. Concerning the Sales Tax Analysis for J'une sales and August collections, the amount wasjust as little under budget. The prior sales tax amount year over year is up 14 -percent, so collectively up almost 7 -percent year over year. Collections through September are up over I -percent; for the month of September $635,000 was budgeted and $628,000 was collected, The Interest & Sinking Reserve on the Balance Sliect, which is essentially the Bond payment, has been decreasing from the pa for n-ionth. As the bonds are paid the fund is built back, Lip, The fund is at $6.3 million and there are no material changes in tennis of liabilities, fund equity or assets other than the Interest & Sinking Reserve line item. On a motion by Joey Herald, seconded by Scott Sutherland, the Board unanimously approved the AEDC Financial Reports as presented. AEYWA,kwfing Minutes October 2, 2013 - Page3 6, AEOC ReportReaardimy Administrative and Marketine Activities of the AU, Upcon' Local Evqnts, Of fildLiStriad, B l, Data Center Retail anusi ness Retention Proiccts ffl.jcz Harry Whalen updated tile Board on office, industrial, and retail projects. BRE activity has resulted in ReSource relocating to the top floor of 700 Central Expressway with ReSource receiving an incentive grant of $50,000. Staff has 'been working oil the relocation ofthe retail headquarters for a restaurant chain to locate in secondgeneration office space. An 800 employee IT company is considering Allen due to Mr. Bowman's 'Wash i ngton/Ph i lade 1ph is marketing trip that was setup by Applied Marketing, Also as a result of this trip, Applied Marketing introduced AEDC Staff to a global service center with a, 600-800 employee operation, An Engineering and R&Dfirrri with 400 employees is looking at going into the Sannnna building at 105 Bethany. CNIT World briefed the Board several months ago on a high bay distribution center. Staff has been in discussions with P&Z to discuss a location for this company along 121. Peter Ng's property, is no longer a consideration for CNITWorld. A paving company was discovered as a result of Mr. Whalon's ("hicago, trip that would employ 20-25 people, Another project ject frons the trip to Chicago is a. video garning company,- the president and his wife have been invited to the Texas Stampede in November. AEDC Staff is working with an indoor sports facility for tennis and racquetball and have included Parks and Recreation in the discussion. Pr()Jcct Genesis is as wholesaler that is, looking to relocate frorn Plano to a 2 acre tract off Prestige. Frith Ashley, with the brewery project, has also made an 01 offer on tile san-ic 2, acre tract, Project I-Iorne Run is one of three prqjeels interested in the Saninina building at 105 Bethany. The company has put a 60 day contract on the building and they are a sports apparel operation with a $3.5 million investment. 'The company will employ 60-70 office staff with a total of 225 employees. The third company, Project Cookie, interested in 105 Bethany is a Canadian bakery. They would bring 200-: 00 with plans to invest $45 million.. Mr, Scriven attended an EB -5 event hosted by the Frisco EDC which is a foreign investment. program. Mr. Whalen met with an attorney frorn Detroit to discuss EB -5 locations and project recornincridations in Allen, i.e. Greg Nelson's office park development. A presentation to the Celina EDC"Board will be conducted by Mr, Whalen on October 7"'. AEDC Board Members are invited to attend this meeting to see how other Boards conduct business, If more -than twoAEDC Board Members attend, a inceting notice will need to be posted. Mr. Smith stated his office is (heir attorney for some prQjccts and that some of the Allen staff work at Cclina. Board Planning Retreat dates, were presented to the Board by Mr. Whalen. Thesc dates include November 7-8 or 15-16 and February 6-7 or 1 -14 which coincide with availability of [tic I'acilitator, Mr. Wagoner. Mr. Herald is ok with Saturday, but Linde rstan ds Mr. Kennedy prefers weekdays. The retreat cannot be held outside the City of Allen. Mr. Whalen stated the agenda would fi'lClUde dinner the night belbre with the retreat beginning the next morning at 8 AM concluding with lunch. November 15-16, Friday aaaacl Saturday, would work for Mr. Kentiodyand Mr. Sutherland. The Board confirmed these dates would work for a retreat, Mr. Whalen will follow up with Ilic facilitator. AFDCAleefing Albuo(es October 2, 201.3 - Page 4 Mr. Wagoner, the recommender] facilitator for the Board Retreat, has been on EDC Boards for about 16 years; he is a developer, entreprenCUr and contractor with an econor nic developrnent perspective. ale has chaired EDC Boards and worked withChambers. 7. Determine Next MectinDate -- Novennber201 6 - �j The next AFDC Board meeting is scheduled for Wednesday, November 6, 2013 at 6:00 p.m. Mr. Whalen recommended cancellation of the January 2014 Board Meeting with no discussion. 8. AcFi'qlrrnment On a motion by ("ire, Kennedy, seconded by Joey Herald, the meeting was adjourned at 10:08 P.Ilt These Minutes approved this 6'h day of November, 2013, Scott Sutherland, President r1-1 Mcard of Director.