Min - Economic Development Corporation - 2014 - 03/12 - Special CalledALLEN ECON01MIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
SPECIAL CALLED MEETING
WEDNESDAY, MARCH 12,2014
Boardj aff Owst5i
Scott Sutherland Dan Bowman Peter Vargas
Michael Schaeffer John Scriven Rich Jolm%on
Greg Kennedy Pete Smith
Joey Herald - absent
Jeff Burkhardt
Call to Qrdprand Ann,�,)unce..a..-Q:qQrgll!–Prcs—cllt
With a quorum of the Board present with members Scott Sutherland, Michael Schaeffer, Greg
Kennedy and JeffBurkhardt in attendance, the Regular Meeting of the Allen Economic Development
Corporation (ADC) Board of'Directors was called to order by President Scott Sutherland at 6:t 1.
p.m. on Wednesday, March 12, 2014 at the Al,DC Office.
I. -A 5 2 ar Board Me
4jMyqj_ f the Minutes of the February.,,
, _, 014 Re�guk etjt)Z
Greg Kennedy pointed out that the text in Item I I should be changed to reference the AEDC
Executive Director (as opposed to the .EDC President), Dan Bowman indicated that staff would.
make that change,
On a motion by Michael Schaeffer, seconded by Jeff Burkhardt, the Board unanimously approved the
Minutes orthe February 5, 2014 Regular Board Meeting as amended.
2. Approval of the I inutes
ial
Park'. i n
Cha ette Meeti
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On a motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanfinously approved the
Minutes, of the February 20, 2014 Special Called Allen Central Park Design Charrette Meeting as
presented.
3. Lkpp
-Tovda1Q.Cl e Minutes the F 1jary 2
of "QbL _2014��' 1 al tre
� 5
------ jig!ja C led Board Re at M
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On as motion by Greg Kennedy, seconded by Jeff Burkhardt, the Board unanimously approved the
Minutes of the February 22, 2014 Special Called Board Retreat Meeting as presented.
AEDC Meeting Ubmtes
March 12, 2014 - Page 2
4. Consider App '.9 �"tate
_royq,t,p gyp E,
Advism.Jn.c,
Dan Bownuin shared the proposed changes to the Peloton agreement with the Board. Bowman
pointed out that after 36 months the property will be reappraised and the tract prices will be adjusted
to the higher of the amounts included in, the agreement or the new appraised values, The AEDC
Board will maintain control of the hotel development process by renioving lots 5 and 6 from the
option agreement, Additional changes were made to the agreement to allow Lot I and Lot 2 to
contain 4 -story, 150,000 square foot office buildings, with the remainder of the lots containing
buildings with a minimum of 6 -stories and 150,000 square feet.
On a motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanimously approved the,
changes to the agreenient and authorized the AEDC InteruilExecutive Director to negotiate and
execute the Development and Option Purchase Agreement with Peloton Real Estate Advisors, Inc.
5. Convene into Closed'F,.,xecutive Session. Pursuant to "I'exas n
Goverment Code
m087;
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Deliberafion,ttf c e e ations: To Deliberate,(',pnj I and Financial
n9jLii D v I ment Npgoti
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Information, and
........ . .. ... Abe, AmyLinz.,
a. Consider Incentives to Suppj)jI the Expansion of Local Alleli Businesses
b. Discuss AEDC Initiatives to Support the Allen Central Business District
Convene into Ch e Executive Session - P
. . . .0 a. .
Deliberation of tli,c SaIC,fUrchase. Exchamw or Value of Real property:
a. Discuss Option Agreement for the Purchase ofaTract in Millennium 'Fechnology Park
b. Discuss Sale ofAEDC-Owned Land in Millennium Technology Park to Sentinel Capital
The Board convened into closed executive session at 6:06 p.m.
Reconvene into 0pren Session
The Board reconvened into regular session at 6:36 p.m..
6, Ac,tiqns Result ing-fronj..Execut j ve Session
No action taken
7. Al2p , 11111-1----agi
_Ko �Laj qLhe AED(,,,,,F' iancia
Greg Kennedy presented the AEDC f�i.nanejal Reports. Kennedy noted that sales tax revenue
received in January was up 16 -percent, driven by increased sales tax fiorn Cisco Systems. February
sales, tax was down 3.6 -percent, but up ftom, the prior year by 4 -percent. December was the, highest
sales tax month with 5940,000 in receipts.
AEDCMeefirig Alfinutes
March 12, 2014 -Page 3
In reviewing expenses, Personnel expenses tbr the month of January were high due to the fiact there
w -e three pay periods. The Dues and Subscriptions line item was high for the month because of
payments for the Allen Central Park and Millennium Technology Park property owners associations.
Overtime is over budget year-to-date due to overtime related to the Texas Stampede. Consulting is
over budget for the month because of tacreased services fiom the AEDC Attorney for contracts and
negotiations, Marketing expenses were originally forecasted at $320,000, but have been reduced 19 -
percent to $260,000.
Regarding the Monthly Cash Balance sheet, Kennedy noted the $2.2 million f6r Cisco Systems will
remain as a liability until July,, at which point the certified appraisals will be available and the AFDC
can ascertain ifthe grant will be owed to Cisco. Experiaaa is, expected to receive a grwit of $450,000
in March. TUrrentine-Jackson's grant will probably be taken off the books.
On a motion by Jeft' Burkhardt, seconded by Michael Schaeffer, the Board unanimously approved the
AEDC Financial Reports as presented.
8, AEDC Report Regardf"ninjstrative and Markeffiv, Activities ofthe AEDC, 1�pgqqjiri
Loc.a.1-events, Office s al
, I Lidp r 1_ i Data Center. Retaal, and Business RetentjonPropec s
Dan, Bowman updated the Board on office, industrial, and retail projects. Ground breaking for Nine
Band Brewing will occur next month. 'Rich Johnson was introduced as the PR Agent that is working
on behalf of the AEDC. Rich will be preparing press releases lbr the AEDC and has begun with a
press release fbi- Monkey ports. AFDC will be sponsoring an upcoming D CEO Magazine event to
market Allen to top performing real estate professionals.
9. Determine Next Meeting,!) 2. 2014
The next AEI: C Board meeting is scheduled for Wednesday, April 2, 2014 at 6:00 pin, Greg
Kennedy will not be available to attend this rnectin&
10. Discussion of FLI A&Le
t Lire qd it liqlLs
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Michael Schaeffer proposed joint sessions with the City Council on a quarterly or biannual basis.
Scott Sutherland stated this should be added as an agenda item for a future Board rnei4irig,
. ..... ........... -- ---- 3 C
11. Convene into Closed Executive Session: Pursuaiit toTexaS ('oven"nent
fbi-T.ff 1.�-Q,niieIMa,tter.s:,,DiSCLIssio,n o f"the Duties lq5,1.)g!15ibilities,Pei.,-tbrm qp,,,aqluation and
............. U,U-,--"-",", . ......
Emplaymentp t f- mAive Director
The Board convened into closed executive session at 6-46 p.ni,
Reconvene into Qp,�q,$pssion
The Board reconvened into regular session at 7:15 pmi.
1IF0C Alketing Alinwes
March 12, 2014 .. Paw 4
12. Actions resulting fi-om executive session
On a motion made by Michael Schaeffer, seconded by.leff Burkhardt the Board unanimously
approved a motion to authorize the President to negotiate and execute a contract with Watters
Consulting to conduct an executive search for the AEDC Executive Director.
13. Adourij,Lpent
L_ —
On a motion by Greg Kennedy, seconded by Michael Schaeffer, the meeting was adjourned at
7:15 p, m.
These Minutes approved this 2',d day of April, 2014.
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Scott Sutherland, President Michael Schaeffer, Vice President