Min - Economic Development Corporation - 2004 - 08/18 - RegularBqgrd
Jim Brazeal
Ken Fulk
Kurt Kizer
Tim Wood
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ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDQ
BOARD OF DIRECTORS
REGULAR MEETING
August 18, 2004
Staff,
Charisse Canfield
Jennifer Grimm
Dan Bowman
Others
David Hoover
Brandon Davidson
Chris Mason
Thomas �Owens
Don Evans
David Bishop
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' WINITIM—AIC
August 18, 2004 at the AEDC Office. The following items were discussed:
'The minutes of the July 21, 2004 RAED,C Board of Directors were approved as
subinitied on a motion by Ken Fulk, seconded by Kurt Kizer.
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The Board, also deliberated commercial and financial information and economic incentives for Project
Spotlight to locate to the: Blue Star Development.
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David Bishop updatedthe Board on the 4.9 -acre development located on the southeast corner of US 7j
and Exchange Parkway. He discussed additional unanticipated costs associated with developing the
site including:
Allen Ecol Development Corporation
Regular Mectiin& August 18, 2004
Page 2
• Cost of raising the property in order to clear, a shallowly buried water main located on the
southern border of the: property to allow for water and sewer lines to e installed.
• Cost of boring underneath the railroad tracks toinstall storm drains at thie northern edge of the
property -
Cost of retaining walls.
He also mentioned indirect costs that inhibit the development of the property, including,,
• Restrictions on the square footage of the buildings.
• The inability of the property to support more than 38,0100 square feet of office space.
• Problems with accessing the property from US 75.
• The high price that has been paid to purchase the property,
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Planning Director, explained to the Board that issues related to w of the! water line: did not
surface! during thic Technical Review Committee's, review of the project.
On a motion by Kurt Kizer, seconded by Ken Fulk, the Board approved an infrastructure incentive up
to $175,0100, to be paid following the issuance of a certificate: of occupancy for the first building on the
property, given that the following requirements are met,
0 $1.5 million taxable value for the first building.
0 Construction,of the first bu illd iing, within 18 months to get the certificate of occupancy.
0 Infrastructure receipts must be provided for reimbursement.
0 10,000 square feetminimum, on the first building
0 15 employees on location.
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The Board,considered the request of Project Security to divide the 9.29 usable acres of the A.EDC-
owned Ridgemont Tract at the southeast comer of Ridgemont Drive and US 75. Project Security only
desires a 4.77 -acre plortion of the property. The: company is interested in constructing a two-story,
60,000 SIF corporate headquarters on the southern portion of the Ridgemiont Tract.The developer is
seeking relief for the developmental costs associated with the steeptopography of the property. On a
motion by Kurt Kizer, seconded by Ken Fulk, the Board approved the following:
0 An offer of land up to 4.77 acres (usable! portion) plus floodplain consisting of approximately
7.0 26 acres (which is to be dedicated to City of Allen) for a total of up to 11.796 acres.
0 Land, price of $2.00/square foot based on usable portion up to 4.77 acres.
9 Recommendation to the City of Allen and Collin County for consideration of a 50%, tax
abatement for 10 years ion the building.
a Up to S 100,000, infrastructure grant to be paid based on invoices submitted for reimbursement
The incentives offired were contingent upon the following:,
Approval of the architectural, lighting and landscaping plans for the project by the AE,DC
Board of'Directors.
-J a Electric lines adjoining the property must gounderground. The Apay for pilaci�ng the
electric lines undergrounid adjoining their remaining property.
0 TaxabS. on the building of at least $5 million (fbr tax abatement purposes).
Regular Meeting,, August 18, 2004
Page 3
The property must provide access/parking for the proposed trailhead to be located within the
floodpl�ain as part of the parks & Trails master plan. Access is via a sidewalk leading to the
main trail.
Project must develop with an office product 1111,not officeltech or uses requiring dock doors.
Building must not be tilt -wall with a preference toward brick, stone or, a combination thereof
Snotl iaht to tfireBlue Star_Devel0m
Project Spotlight is interested in locating a 56,000 SF destinationfentertainment facility in the Blue
P
Star Development along SH 12 ]1. The company a peared before the AEiDC Board n July for
consideration of incentives. Following the Board's decision, the company selected the Blue Star site
for Us project pending modification of several items in the contract including:
0 Prorating the infrastructure! grant in years 6-10 in the event of a default. if the company went
of out of business anytimein the first 5 years, they would owe the full incentive: grant.
0 The compor consideration on the minimum $7 million Wable personal
property value that must be maintained fbr 10 years. They preferred the amount be stated as an
al value required,
The Board reviewed a draft incent Eve contract. with Project Spotlight and made recommendations. On
motion by Ken Fulk, seconded by Tim Wood, the Board approved prorating Project Security's
infrastructure grant in years 6-10. to the event of default within the first 5 years the company wou ld
owe the full incentive grant and in years 6-10 the company would owe the prorated amount for the
years not in compliance. The Board also approved a $7 million taxable personal property value for th
first year and authorized Jim Brazeal to, negotiate the fine details of the incentivecontract.
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azeal, President
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t Fulk, Secretary