Min - Economic Development Corporation - 2015 - 02/04 - RegularALLEN ECONOMIC DEVELOPORPORATIOX AEDC)
BOARD OF DIRECTORS REGULAR MEETING
WEDNESDAY, FEBRUARY4,2015
Board
Scott Sutherland
Michael Schaeffer
Greg Kennedy -Absent
Joey Herald
Jeff Burkhardt
Peter Vargas
Staff
Dan Bowman
David Ellis
Kevin Laughlin
Call to Order and Announce a Oulorum Present
Guest's
Brad McJu,
and Jeff Burkhardt in attendance, the Regul�ar Meeting of the Allen Economic Development
Corporation (AEDC) Board of Directors was called to order by President Sutherland at 6:03 p.m. on
Wednesday, February 4, 2015, at the AEDC Office.
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On a motion, by Michael, Schaefer, seconded by Joey Hicrald, the Board unanimously approved the
Minutes of the January 7, 2015, Regular AEDC Board Meeting.
Bowman noted that the original agreement with KB K, LLCrequires that the company commence
construction on its, new facility in February of 2014 and complete construction by April of 2014. it
also stated that the company would receive its initial payment on the first anniversary of receipt of a
certificate of occupancy (CO). Bowman said that after a review of the agreement, it is his opinion that
the completion date of construction was in error and should be changed from April 2014 to April
20151. He also added that compa
nies typically receive their initial payments upon, receipt of CO, not
after the first anniversary of ipit of Co.
KBKK, LLC has submitted a request for grant payment based on their receipt of a temporary CO and
the submission of other required documentation according to the agreement. The proposed Amended
and Restated Economic Development Agreement would authorize the company to receive the initial
grant payment of $25,0010.
On a motion by Joey Herald, seconded by Jeff Burkhardt, the Board unanimously approved the
Amended and Restated Economic Development Agreement with KBKKLLC (db,a Nine Band
Brewing) and authorized payment of the initial installment of thegrant based on the company's
receipt of a temporary certificate of occupancy.
A EDC Aleeting Alinates
Febriany 4, 20 15 - Page 2
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Consider Incentives to the Pielotion Office Development in Allen Central Park
b. Consider Incentives to Support Oiffice Development on SH 121
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5. Actions Resulting_flrom Exqcutave -Session
On a motion by Joey Herald, seconded by Michael Schaeffer, the Board unanimously authorized the
AEDC Executive Director to negotiate and execute a purchase and sale agreement with Simon Lebow
Trust to purchase 311.24+ acres for S6 million with $1.6 million cash and a $4A million promissory
note secured by a deed trust lien or such other financing mechanism as agreed by the parties and sign
such other documents necessary to carry out the obligations of said agreement.
On a motion by, Michael Schaeffer, secondied by Joey Herald, the Board unanimously authorized the
AEDC Executive Director to negotiate and execute a development agreement with TIG to provide up,
to $38,:500 fbT design fees for a 3 -story building oon property owned by Cottonwood Creek
Baptist Church,
Dan Bowman reviewed the financial reports. Revenue for the month. was on target with the budget.
Sales tax coillections in December were up by 2%. Salaries and Benefits we,re diown due to, vacancies
of the Marketing & Research Director and Economic Development Specialist positions. Consulting
Services were higher due to the HVS study and the Board Rictreat. Training/Travel was higher
because of the IEDC Annual Conference, which was reported in the current fiscal year,Economic
Development Grantswere discussedare listed with reference to, the expected dates of
payments.
On a motion by Michael Schaeffer, seconded by Jeff Burkhardt, the Board unanimoed the
MDC Financial Reports as presented.
AEDC Meeling Minwa�
Febmmy 4, 20f 5 -Page 3
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Bowman explained the draft projec(scorecard developed by AEDC staff to help evaluate projects.
The scorecard incorporates the qualitative factors of projects to provide a more objective, eqvitabl
anI consistent evaluation. Bowman explained the scorecard"s methodology and reviewedeach of i
10 categories in detail. Lat�er he showed examples of two past projects that were measured by the,
scorecard. To
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aspects of a project and second page for the qualitative aspects. Jeff Burkhardt requested that
supplemental project presentations and information be made available on Dropbox. I
S. Report on AFDC Office Iniclu.s.trial, Data Center, Retail and Business Retention Proiects and
Marketing Activities
Bowman provided an update on the status of'the AEDC Plan of Work. The majority of the staff
member's efforts have been focused on introducing efficiencies, such, as the Board Packet process.
Business Retention and Expansion has recurring ievents with Human Resources and Facilities
managers scheduled, along with a monthly dinner wiith Allen Executives, A,EDC Board, City leadiers
and spouses, Bowman added, that the Plan of Work has, been helpful in, providing direction and focus
IIr the staff.
The IntelliEPI agreement is expected to be completed' by February 13,, 21 15, should break ground
shortly thereafter. A large data center project is still in the works.
City Council approved [hie Letter of Intent for the Hotel/Conference center. A development
agreement is expected to be executed in March. A boutique hotel is evaluating space at, Watters
Creek. Developer KC is, seeking to partner with a landowner near SH 12 1.
Ari -Tex has a draft incentive agreement, The company is negotiating an casement agrreemcrit with the
owner of the adjoining property.
10. Discussion of Future Agenda Items,
No items were discussed,
11. Convene into Closed Executive Session: Pursuant to TexasGovernment Code, Section 55 1.0
fI r Personnel Matters: Discussiog, of the Duties�, Responsibilities. Performance, Evaluation an
EmployMent of the Executive Director
The Board convened into closed p.m.
A EDC Afeenhg Minuiew
February 4, 2015 - Page 4
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218
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On a motion from Joey Herald, seconded by Jeff Burkhardt, the Board unartimously, approved
atithorizing the Board President to negotiate and execute an amendment to the employment contract
with the Executive Director to increase the Executive Director base salary to $120,000.
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S�cott Sutherland, President Michael 'chafer Vcc President