Min - Economic Development Corporation - 2014 - 02/05 - RegularALLEN ECONOMIC DEVELOPMEN' r CORPORATION (AEDC)
BOA" OF DIRECTORS
REGULAR MEETING'
WEDNESDAY, FEBRUARY 5,2014
Board
Scott Sutherland
Michael Schaeffer
Greg Kennedy
Joey Herald
Jeff Burkhardt
Staff
Harry Whalen
Dan Bownian,
John Scriven
Pete Sulith
Call to Order and Antlouncezi Qpor�qrn Present
Guests
Peter Vargas
I.= Battle
Carlton Schwab
Murl Richardson
With a quorurn of the Board present withnicnibers Scott Sutherland, Michael Schaeffer, Greg
Kennedy, Joey Herald and Jeff Burkhardt in attendance, the Regular Meeting of tile Allen Economic
Development Corporation (AEDC') Board of Directors was called to order by President Scott
Sutherland at 6:02 p,m, on Wednesday, 1,ebruary 5, 2014 at the AEDC Office,
1. Approval cal the Minutes of the !anLiqL
y 15,2014,Re ru]ArBoard Meetiro &
On a motion by (Jreg Kennedy, seconded by Joey Herald, the Board unanimously approved the
Minutes of the January 15, 2014 Regiflar Board Meeting as presented.
2. Presentation by Carlton Schwab, President & CEOJ'exas Economic Development Council —
CoLmnjoijaljtyofExcqlleijcq jongEDC'sinTexas
Carlton Schwab shared information with the Board about the history and PLI-fl)OSC ofthe Texas
Economic Development Cotinell (TEDC), Mr. Schwab provided all overview of economic
development, bow it has progressed over the past forty years and the current role of economic
devc1opment organizations.
3. Prc�sentafion update fi-om Murl Richardson of Peloto. i i Leal 1state Advisors for 23 acres in Allen
Central Park.
A presentation by MUH Richardson with Peloton outlined the developer's proposed responsibilities
for Allen Central Park. Mr. Richardson noted that tile development agrcement between the AEN'
and Pelotonisbeings finalized. A schedule of acti vi ties over tile next several months was discussed,
Mr. Richardson propose(] that the AEDC,I
participate in a design charrette to provide input into the
master planning process.
AEJJC iWeefing Alimiles
Fehruwy 5, 2014 - Page 2
4. Convene into Closed Executive Session: Pursuant to 'rexas Government Code Section 55 1,087,
Deliberation of Econornic DeveWment Newtiations: To Deliberate Commercial and Financial
Information and Econornic hicentivesfor the Followin
a. Consider Incentives to SLIpport the Expansion of Atlas Copco
Convene into Closed Executive Session: Pursuant to'11'exas. ("Jovernment Code, Section, '551 071
, Urc
Deliberation of t L .......... , chase Exchan c, or Value of Real Proveriv:
alc �P - � �
a. Consider Sale of AEDC', -Owned Tract in M i I lenniurn Technology Park
b. Consider Option Agreement forthe Purchase of a Tract in Millennium'I"echnology Park
'rhe Board convened into closed executive session at 6:56 p,m,
Reconvene MtL) ( )ej
I Session
The Board reconvened into regular session at 7A4 pmi.
5. Actions Resultine frorn Executive Session
No action taken,
6. the AEDC"Financial ire ppils
Greg Keruiedy presented the AEDC'Financial Reports. Mr, Kennedy stated the AE DC Staff is
working with the Finance Department to review the year to data sales tax revenue Figures. $1.4
million in sales tax revenues, have been received by the AEDC since October. Mr. Kennedy
reminded the Board that sales tax collections lag by two months. AEDC, expenses, year to date are
approximately $904,000.
Mr. Kennedy noted that expenses for Consulting Services were higher for the month due to attorney
fees for KONE and Peloton econornic developnient agreenicrits, Payments for incentives in February
include No Magic for $15,000, Photronies at $12,000, Standex at $35,00,0 and Turrentine-Jackson for
$50,000. TUrrctitine-Jackson has not requestedthis gyrant; Dan Bowman will tbIlOW-LIP with therm to
deterrnine if they will be, requesting this incentive. The payment of $300,000 in December was for
Frontier.
Sales tax receipts for November were in excess of the budget, but December nurnbers will need to be
watched because the budget ainoUnt is high at $981,000, Overall, the reventic arnount is trending Up,
Mr. Kennedy indicated there were no material changes on the Balance Sheet regarding the assets and
liabilities. The ending ffind balance is ck)se to $8,000,000
On z7t inotion by Michael Schaeffer, seconded by Joey Herald, the Board Unanimously approved the
AFDC" Financial Reports as presented,
A EDC.Weefing Iffinwes
Fehruary 5, 2014 - Page 3
7, AE C" Report &a�arctt.PZ.Adniinistrative and Marketing, Activities of tile AEDC,-Vp
Local Events, Office, Industrial Data enter Business Retentkm
rRetaiI44�t Business .............. . .. --i
'Harry Whalenupdated the Board on office, Industrial, and retail, projects. K,ONE is expected to sign
a lease within the next week. Project Horne Run is waiting on a response Bonn the State regarding
their application herr the Texas Enterprise Fund.
CVE T ectniologies is moving forward with permitting for 915 Enterprise, Project Chicken Fry
involves a restaurant chain that has requested the EDC or CDC to, build two restaurants and then lease
thenen back to the company, Sales and property tax would be just under $400,000 with total sales r -or
the chicken restaurant at $3.9 million and the steak restaurant at $2.3 million.
AEDC Staff have been in dis,cuss,ions with a hotel group from Dallas that is considering construction
of a hotel and corrterence center. Ali MOU has been received by the AFDC" and is under review.
Staff continues to meet with land owners, developers and brokers, in the Dallas market area.
annin
8. Up it Retreat for Februmum
date on the AEDC Plannh
. . . ..........
Mr. Kennedy handed out an overview of the agenda Ibr the Board Retreat. Mr. Kennedy stated the
Board needs to review the City's Strategic Plan and provide any feedback to Bill Wagoner by Sunday
evening. Mr. Sutherland reminded the Board to express any opinions about the agenda before the
posting deadline of Tuesday, Febr-uary 18,
Mr, Wagoner will call all the Board rriernbers next week. On Friday February 21, Mr. Wagoner
wants to meet individually with each Board rnernber and City officials. Tracey Cline will email
calendar invitations for these niectirigs. Mr. Sutherland requested that the Board receive details about
the dinner planned t6r the Friday evening prior to the Board Retreat.
9 R mit jpgliding Ci of AllenStratqgLq-,-r Jo
-ZtIqningRetreqt Herak
Mr. Herald stated the City Council met on January 25 to discuss the strategic plan fbi, the City.
Mr. Herald commented that the strategies did not change dramatically, but the session did identify
short list of items, that should receive locus ti-om the AFDC" and City Staft' Mr, Herald briefly shared
with the Board seven items that are a priority for the City'.
1, Cl. Determine Next Micetin-, �Qat!� --_M, t 5_, 2014
The next SEDC; Board meeting is scheduled for Wednesday, March 5, 2014 at 6:00 prn.
11, DiSCUSSi011 of Future AgqjL(t gLjn,�
Mr. Sutherland shared that as policy needs to be created for the approval of expenses above $2,500
that are not already included in the approved budget, Pete Smith retrunded the Board that there is not
a policy regarding the amount that the AEDC'Executive Director can spend on individual line items
within the budget.
ADC'Meeling Uhnnes
Fetwtuvy 5, 2014- Page 4
12., Convene into Closed Exccu I ' ivc Session, Pursuant to Texas Goverrunctit Code, Section 551.074
for Personnel Matters: Discussion of th nd
ErpployiLieqt of the Executive Director
1' he Board convened into closed executive session at 8: 17 prn,
Reconvene int p () 3en S,��ssion
j__ _5 _
The Board reconvened into regular session at 8:56 p.m.
Harry Whalen announced his resignation as Executive Director effective February 7, 2014 and
presented a written resignation to the Board.
13, Actions resultinp- from executive session
On a motion made by Greg Kennedy, seconded by Joey Herald the Board unarnmouslyapproved
the resignation offlarry Whalen and waived the 60 day notice required under the employment
agreement and agreed to make the resignation effective Febniary 7, 2014.
On a motion made by Michael Schaeffer, seconded by Joey Herald the Board unanimously
authorized the AED(.,' Board President to negotiate and execute a consulting agreement with
Harry Whalen for a period ot'90 days for the sum of $15,000.
On a rnotion made by Teff Burkhardt, seconded by (..jreg Kennedy the Board unanimously
approved appointing Dan Bowman as Interim Executive Director effective February 7, 2014.
14. Board Reconvened into Closed Executive Session: Pursuant to "'Fexas Government Code, Section
551.@74 for Persojuiel Matters: Discussion of the DutiesResponsibilities Perfognance,
Evaluation and EmploylLient of time ExecutiveDirectorat 9. 1 Op.m..
Reconvene into j 0
en. Session
The Board reconvened into regular session at 9:25 p.m,
15. Actions Resulting" fironi r,:Xecufive Session
On a motion made by Michael Schaeffer, seconded by Joey Herald the Board unanirnously approved
the appointment of Joey Herald and Greg Kennedy to search for as search firm for the new Executive
Director.
16. A )Irtimcnt
On a motion by Greg Kenncdy, secondedby Joey Herald, the rn.ecting was ad ourncd at
9.26 p.m.
1'ehruevy 5, 2014 - Page
These Minutes approved this 12'11 day, or March, 2014.
..... ........
Scott S-Ljthcrland, President Michail Schaeffer, Vice President