Min - Economic Development Corporation - 2014 - 01/15 - RegularALLEN ECONOMIC DEVELOPMENTCORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETINGY
WEDNESDAY, JANUARY 15, 2O 14
Board
Staff Guests
Scott Sutherland
Harry Whalen Peter Vargas
Michael Schaeffer
Dan Bowman Lee Battle
Greg, Kennedy
John Scri'ven
,Joey Herald
Kevin Laughlin
Jeff Burkhardt
and Announgga )u(,)r-n Present
With a quorum of the Board present with members Scott Sutherland, Michael Schaeffer, Greg
Kennedy, Joey Herald and Jeff Burkhardt in attendance, the Regular Meeting of the.Allen Economic
Development Corporation (AEDC) Board of Directors was called to order by President Scott
Sutherland at 6:03 pm. on Wednesday, January 15, 2014 at the AEDC Office.
1. A42prqyal of the Minutes of the ,Decen-iber 4,20131�
Mr. Sutherland inibrii-ied the Board that item number 9 in the minutes was changed and that the
printed copy of the minutes is different than what appears in NovusAgenda, Rather than including a
lot ot"commentary, the minutes need to be kept brief Mr. Sutherland stated going, foilvard, the
minutes will be prepared one week after the Board Meeting and distributed to the secret ary/treasurer,
Mr. Kennedy. Mr. Kennedy will review the minutes and then distribute them to the Board fbr review.
On a motion by Michael Schaeff"�r, seconded by Joey Herald, tho Board unanimously approval the
Minutes of the December 4, 2013 Regular Board Meeting as presented.
2, Convene,jiltp Closed Executive Session: Pursuant tole -ru.'rient Co e,
G,vei d Section 551,087,
Deliberation of Economic Developin n...,t Newtiations: To Deliberate Commercial and Financial
....... . . . 1-1-11-1 . ......
lnforniation and Economic Incentives for the Following:
Consider Sale of Land, and Other Incentives to Support the Development of. llci lace
Office Center.
The Board convened into closed executive session at 6-07 p.ni.
Reconvene into Open Session
The Board reconvened. into regular session at 6:49 pm.
AE DC Axleejing Minutes
AlInsavy 15, 2014 - 11age 2
3,.AcItlionsResulting from Executive Session
On a motion by Joey Herald, seconded by ((reg Kennedy, the Board unanimously authorized the:
AEDC President to negotiate and execute ail economic development agreement with KONE, Inc. for
a grant in the amount of $500,000 filar infrastructure and relocation costs reimbursement and a grant of
up to $200,000 for r firibursenicrit of construction costs of a test tower subject to leasing up to 21,000
square feet of office space and 24,000 square feet of space fZ)r the test tower for a period of riot less
than 10 years on land owned by the AEDC in Mi Ilenniurn Technology Park.
4. A nroval ofthe AEDC Financial Re orts
Greg Kennedy presented the AEL" C F iiiancial Reports. Mr. Kennedy noted the sales tax re'venue.t6r
November was 3 -percent under budget, but ahead of November 2012 by about $6,000. The arnount
received in, December was under by 1.5 -percent; however January collections based on November
sales, are up 17 -percent to budget and 22 -percent ahead of 2013 collections, Mr. Kennedy cautioned
the Board that the sales tax numbers need to be reviewed over several months because the increase in
Novernber sales tax may be due to early discounts by retailers.
Mr. Kennedy pointed out various line item expenses mentioning those that were under budget and the
ones that were over. For the month, expenses totaled $408,000 oil a budget of S432,000 mid income
totaled $717,000 on a budget of 741,000 with net income at $309,000. Net, operating income year-
to-date is206,000
Economic grant donations for November included PF'Sweb in the amount of $263,000 and ReSource
received$50,000�. Committed projects on the Cash. Balance street include Cisco at $2.2 million which
will be evaluated in July, S 15000 for No Magic and $12,000 for Pbotronics. Turrentine Jacksori has
not requested their grant in the amount of 50,000..
On a motion by Joey Herald, seconded by Michael Schaefer, the Board unanimously approved the
A,EDC Financial Reports as presented.
5. Update ' Board Plata ning &treat — Februar 22 2014
-qq AEDC
11 . ... ...... .
Mr. Kennedy stated a draft agenda has been, prepared with input fi-orn Bill Wagoner, The foal is to
approve the agenda by the February 5, 2014 Board Meeting, The City's Economic Development plan
has been provided for each Board Member to review, make notes and prioritize the items focusing on
FY14'and FY 15'. Mr. Kennedy advised the: Board to prepare comments oil the plan and Ibi-ward
them to Mr. Whalen so lie can send them to Mr. Wagoner prior to the: retreat.
Mr. 'Wagoner plans to meet individually with each Board Member either at the office or by phone,
Mr. Whalen prefers that each Board Member triect with Mr. Wagoner at the AE C' Office, Mr.
Wagoner would like to meet with other key stakeholders, Mayor Terrell and the City Council.
There will be an informal dinner Friday night fbr Board Mernber's who would like to attend. The
plan will be to start the retreat at. 8 AM Saturday morning and end no later than 2 PM, Mr.
Sutherland emphasized that the Board should read the City Strategic Plan and provide tedback to
Jmmcr'r° , 15 2014 1'a, 'e m
Mr. Whalen. Mr. Scliaeftir would like the Board to receive r. Wa er's Bio; Mr. Whalen n will
forward this information to the Board.
Mr. VN`halen noted the Board should review the City's Strategic Plan to develop the. Marketing,
Strategy and Phan o'"Fork for the AFDC, Mr, Kennedy said creating an economic development plan
throu gb 1m)I15' would help support the City Council iur their strategic plarming process.
6. AE S � ca�� lE� ��u�c�u rrmuu�u�.tb �� arad,l alk l�ul ct mt e:s of the E�_ l e .t
l rn al F t ._C h �...lrndanstrial, l u a_!L er,.... nil, arrL u.0 inessRet nt onprojects
l-larry Whalen updated the Board on office, industrial, and retail projects. Mr. Whalen stated project
:Home Run did sign an agreement to purchase 105 Bethany, in Allen with plains to employ 203 people.
The company will be relocating their headquarters ~ons California. "Their operation will include
retail, warehouse and distribution within the facility,
Project Cellular signed a lease on December r 18, 2013 linr 72,000 square Feet and will staff 400
employees. Future plans arc to lease the entire building and increase employment to 1,20 jobs.
The Site Certification process on the Howard Hughes hes laird in Allen has continued with a development
meeting attended by Mr. Sutherland, AEDC Staff", Howard Hughes Staff and their land planner. The
development of an office/business park carrnpus on the Howard Hughes property was discussed.. Mr.
Whalen noted the land planner- suggested that a research hark ca7nnpus should be considered for this
area of the city and that if adjacent land was included along with the Howard Hughes property there
would be close to 1,000 acres firr developnnent. Mr, Whalen said to plan a major development like
this could take five years before construction would begin,
Mr. Whalen contacted the site consultants for ProWject Azalea, the multi -billion dollar project from last
year, letting them know the site certification process has been cornnpleted on the Howard Hughes
property and that the site is still available,
7. Dtmm rniii-te Nest Meetiunan . Eebruuary 5, 2014
The next AEDf C Board meeting is scheduled for Wednesday, February 5, 2014 at 6:00 pry.
S, Convene into Closed Executive Session Pursuant to Texas Government {"¢',tile Section 551.074
fbr Personnel Matters:.:Discussion ofthe Duties, and Respornsibilitres,,cw,.f tlne,,,Er'»ecrutive Director -
The board convened into closed executive session at 7:1 S pa rrn.
Reconvene into Open Session
`C."he board reconvened into regular sessions at 813,p,nn.,
A EI)c Xleeling Afinutes
deametty ], 2014 - Page 4
9.ActionsResultingfiQ11 -'
1 L,;sgcqtive ssion
No action taken
The meeting was adjourned at 8:14 pm,
These Minutes approved this 5"' (lay of February, 2014.
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Scott Sutherland, President Michael Schaeffer, Vice President