Min - Economic Development Corporation - 2004 - 07/21 - RegularBoard
Jim Brazeal
Ken Full
Kurt Kizer
Maxine Sweet
Tim Wood
ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDQ
BOARD OF DIRECTORS
REGULAR MEETING
July 21, 2004
Staff
Chiarisse Canfield
Jennifer Grimm
Dan Bowman
Call to Order and Announce a -Quorum Present
Others
David Hoover
Felix Aniobi
Jud Heflin
Thomas Owens
Paul Chapman
Jim Francis
Kerry Craven
Paul Chapman
Bobby Hawthorne
Brant Landry
John Gates
'Tom Lacey
Mike Villalobos
With a quor ' um of the Board present, the Regular Meeting of the Allen Economic Development
Corporatioln,(AE,DC) was called to order by President Jim Brazeal at 6:02 p.m. on Wednesday,
July 21, 2004 at the AEDC Office. The following items were discussed-
Apgrove Minutes of the June 23 2004 Regular Meeting of the AEDC Board of Directors.
The minutes of the June 23, 2004 Regular Meeting of the AEDC Board of Directors, were approved as
submitted on a motion by Ken pulls, seconded by Maxine Sweet,
Convene into Closed Executive Session.
The Board convened into closed executivesession at 6:104 p.m. to deliberate commercial and financial
information and economic incentives for Project Flash to locate into 600 Millennium Drive and
commercial and financial information and economic incentives for Project Spotlight to [locate to the
Blue Star Development.
Reconvene. Lnt-Q--R—egalar Session.
The Board reconvened into, rcgular session at approximately 8:110 p.m.
Regular Meeting, July 21, 2004
F"age 2
Consider and take Action for theApULgya I of the Landscaping. Lighting and Architectural Designs
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for McDermott Business Eack Located at the Southwest Comer of McDermott Drive and Ash Drive.
Mike Villalobos with Marcoin Construction updated the Board on, plans for the development of
McDermott Business Park located at the southwest corner of McDermott Drive and .Ash Drive. Be
presented the lighting and architectural designs; however the landscaping plans were not yet available.
for presentation. Villalobos agreed to return to the Board when he has all the plans completed and is
ready for approval. The Board reviewed the architectural plans and Ken Fulk suggested Villalobos
consider adding more stone features and canopies. The general consensus, of the Board was to not
impede progress at the site and to pern-dt Villalobos to proceed with site grading,; however before any
incentives will be committed, the full landscaping,, lighting and architectural plans will need to be
approved at a future AEDC Board meeting.
Consider and take Action on a Recommendation to the Allen Ci ly Council Regarding the
Continuation offaxIncenti
AbA=c or Inter -Commercial Business SylLems
(_ves f -(ICBS) an
Illormas M, LAUY,
Tom Lacey, ICBS, explained to the Board that for at least the next two years, ICBS cannot meet the
minimum $5 million compliance value required on their tax abatement. He requested the. Board make
a recommendation to end the abatement permanently without the recapture of black taxes. The Board
discussed the various options available. On a motion by Maxine Sweet, seconded by Ken Fulk, the
Board approved offering ICBS several options;
Option #I: Removal of the tax abatement for 2004 and review of the company's status if]
2005.
Option #2: Removal of the tax abatement for all future years with ICBS paying the
previously abated taxes.
A certified letter will be sent to Lacey giving him a deadline to respond to the: options. If he doesn't
respond by the deadline, the Board can recommend Option #2 under the default clause in the tax
abatement agreement.
Consider and take Action Regarding Incentives Su2plorting the Recruitment of Pro'ect Flash to Locate
into 600 Millennium Drive.
The company discussed their interest in locating operations to, 600 Millennium Drive. Their decision
hinges on incentives and the cost of doling business between the Allen location and one in California
close to their corporate headquarters.
On a motion by Ken Folk, seconded, by Maxine Sweet, the Board approved $,900,000 in incentive
grants, to, be: distributed on the following schedule:
$300,000 upon the issuance of a Certificate of Occupancy,
$300,0010 on the first anniversary of the Certificate of Occupancy.
0 $300,0010 on the second anniversary of the Certificate of Occupancy.
The incentives are contingent upon Project Flash occupying the facility for at least 10 years and
maintaining 100, employees and $5.9 million in taxable business personal property value for the
10 year period.
Allen Economic Development Corporation
Regular Meeting, July 21,,2004
Page 3
Consider and take Action, ReBard -ingIncentives -5uppqqing the Recruitment of Project Spotlight to th
Blue Star Develoornent in, Allen..
The company discussed their interest in constructing a 56,000 F entertainment -related project within
the Blue Star Development along SH 121. The Allen site is in competition with other sites in the area
and incentives will be one of the deciding factors.
On a motion by Kurt Kizer, seconded by Tim Wood, the Board approved $900,000, in incentive grants
to be distributed on the following schedule:
• $500,,000 upon the issuance of'a Certificate of Occupancy for the building,
$200:,,000 on the first anniversary of the Certificate of Occupancy,
• $2010,,000 on the second anniversary of the Certificate of Occupancy.
The incentives are based on infrastructure costs associated with the development and will require the
company to, submit the appropriate construction receipts for payment, The incentives are also
contingent upon the company occupying the facility for at least 10 years and maintaining a minimum
of 30 employees and at least $7 million in taxable business personal property value for the 10, year
period.
ONr IClyllrMT1 is- 0i"
Dan Bowman, presented the AEDC financial reports and updated the Board on the status of tax
abatement and incentive compliance for AEDC companies. ICBS and Fiber Systems International. are
the only two companies in danger of being in default on their contracts. Charisse will meet with Fiber
Systems representatives to discuss their incentive commitment. On a motion by Tim Wood, seconded
by Kurt Kizer, the Board approved the AEDC financial reports.
Discuss Administrative and Marketing Activitie5 Qf the AEDQ,
Jennifer Grimm updated the Board on the marketing activities of the AEDC and announced that
Allies Day is tentatively, scheduled for May 2, 2005.
Charisse informed the Board that developer has approached the AED,C about the possibility of
constructing an office project on the Ridgemont tract. The office project would include the building
for an end-user prospect. BMR -W2 LP, who, currently has a Letter of Intent with the AFDC on the:
Ridgemont tract, is unable to fulfill the request of the prospect due to specific requirements the
prospect has relating to ownership of the building, The prospect desires to be located in Allen and
specifically on the tract., The Letter of Intent provides the AEDC flexibility to work with another
party for a specific end-user. The consensus of the Board was to visit with BMR -W2 and make them
aware of the request. Jim Brazeal and Charisse will schedule a meeting with BMR -W2 immediately.
NWAPIN
Replax Mecting, July 21, 2004
Page 4
On a motion by Ken Fulk, seconided, by 'Tim Wood, the meeting was officially adjourned at 9:37 p,rn,
These minutes approved this 18"' day of August, 2004.
razeal, President "J Kenneth Fulk, Seery