Min - Economic Development Corporation - 2015 - 01/07 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OFDIRECTORS REGULAR MEETING
WEDNESDAY, JANUARY 015
Board
Scott Sutherland
Michael Schaeffer
Greg Kennedy
Joey Herald
Jeff Burkhardt
Peter Vargas
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David Ellis
Pete Smith
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Guests
Chnis Flanigan
Garret Cook
Morris Simmons
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*n a motion by Joey Herald, seconded by Michael Schaefer, the Board unanimously approved' the
Minutes of the December 31, 2014, Regular AEDC Board" Meeting.
Chris Flanig
projects. Current projects under construction include the Bray Central Widening, Riidgeview Drive,
and US 75. Th e US 75 expansion project, expected to be completed by 20,16, will,greatly increase
mobility. By adding a fourth lane in both directions, it will remove a bottleneck and make US 75 four
lanes from downtown Dallas to north of Melissa.
Future road construction projects include Alma Drive by widening the road from Bethany Dr. to SH
121, extending Ridgeview Dr. from Watters, Rd. to Chelsea Blvd. and various intersection
improvements. Collin County is partnering with the City of'Allen with a 510150 match of funding.
Joey Herald noted a correction to the Ridgeview Ramp, Greg Kennedy inquired about traffic counts
for US 75 and Chn's Flanigan said that they are around 2010,0100 cars per day.
3, Acknowledgement of the 'Taxabil c Val uc Submitted by KONE-Mr the! Tenns of the Amended and
Restated -Economic Development Agreement.
Bowman stated that KONE's, taxable values had fallen below $6 million, the required amount under
the terms of the original incentive ageement. The new incentive agreement with KONE includes a
lower taxable value requirement of $5 million. Currently, KONE's taxable values and employment
numbers are above the requirements in the new agreement; however, the lower minimum taxable
AEDC Meeting Minutes
Januaiy 7, 2015 - Page 2
value does not take effect until after the construction of the facility is complete. On a motion by Greg
Kenriedy, seconded by Joey Herald, t�he Board 'unanimously approved a motion to acknowledge
KONE's, taxable value and to waive the requirement to maintain the taxable value! for 2014,,
4. Conveneinto ClosedExecutive Session: Pursuant to Texas Govemmqa1,Q9dq,..Section 551,087;
Peliberation of Economic Develoment Negotiations: To Deliberate Commercial and Financial
Information and Economic for the Foll,owin&
a. Consider Approval of Letter of Intent for development of a Hotel and Conference Cent
b. Consider Incentives to Support Office Development in Allen Central Park. i
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The Board reconvened into regular session at 7:08 pm.
61. Actions Resulting from Executive Session
On a motion by Joey Herald, seconded Greg Kennedy,. the Board unanimously authorized the
Executive Director to negotiate and execute the Letter of Intent with'TCH Altera, LLC', subject to the
approval of the Letter of Intent by the Allen City Council.
7. Approval of AEDC Financial Reports
Greg Kennedy reviewed the financial reports. Revenue for the month was on target with the budget.
Sales, tax collections in November were down slightly by 2%. There was an increase in the Sale of
Land due to the recording of the AllenPlaice sale.
Marketing, expenses were under budget, Marketing outlays will ramp up with the new marketing plan.
Michael Schaeffer inquired if the marketing forecast was made by dividing the annual marketing
budget by, 12.
Net Operating Income, was $1.7 million for the month and essentially on budget. There was a material
change in the Balance Sheet due to the sale of land at AllenPlace.
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AFDC' Afeeling Minitites
Jantingi 7, 2015 - Peart, 3
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Bowman reported data center interest and office opportunities along SH 12 1. The AEDC is seeing
office opportunities along SH 12 1. Staff is working with four ex,ist�ing companies on potential
expansi�ons. Sentinel Capital. indicated that they are working through some cost issues with KOiNE
and plan to break ground at the end of January 2015.
Geneva Aragon left AEDC to, pursue another poon. The Allen Economic Development
Corporation is moving forward with the marketing plan and pursuing a replacement for the
marketing director position.
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The next AEDC Board meeting is scheduled fair Wednesday, February 4, 2015, at 6.00 A
10. Discussion of Future Alr,,,gnda Items
Bowman oiffereld to bring, in an expert to discuss business accelerators with the Board. Joey Hera
indicated that his previous request is mostly educational and could be! postponed until later in the
wear.
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7'i 17 p.m.
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Scott Sutherland, President Michael Schaleffer, Vice President