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HomeMy WebLinkAboutMin - Economic Development Corporation - 2006 - 01/18 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING January 18, 2006 Board Staff Guests Kurt Ktzer Charisse Bodisch Blau Oden Tim Wood Jennifer Grimm Ben Appleby Ken Fulk Dan Bowman David Hoover Maxine Sweet Shane Vance Carl Clemencich Call to Order and Announce a Ouorum Present. With a quorum of the Board present, the Regular Meeting of the Allen Economic Development Corporation (AFDC) was called to order by President Kurt Kizer at 6:06 p.m. on Wednesday, January 18, 2006 at the AFDC Office The following items were discussed: Approve Minutes of the December 21 2005 Regular Meeting of the AEDC Board of Directors The minutes of the December 21, 2005 Regular Meeting of the AEDC Board of Directors were approved as submitted on a motion by Maxine Sweet, seconded by Tim Wood. Convene into Closed Executive Session. The Board convened into closed executive session at 6:07 p.m. to deliberate commercial and financial information and economic incentives for: • The recruitment of Project Homecoming to Allen • Development of an office building on property owned by the AFDC in Millennium Corpmate Center • The recruitment of Project Smarty to Allen • Development in Allen's Central Business District • The recruitment of Project Life to Allen. Reconvene into Regular Session. The Board reconvened into regular session at 7:38 pan. Allen Economic Development Corporation Regular Meeting, January 18, 2006 Page 2 Consider Aooroval of Incentives Suim rting the Recruitment of Protect Homecoming to Allen Project Homecoming, a developer of NVIDIA -based graphics cards, is interested in locating their company from Illinois to the Dallas area and is considering taking approximately 45,000-60,000 square feet at 815 Enterprise Boulevard. Shrine Vance with Project Homecoming appeared before the Board to request incentives from the AEDC to offset the company's relocation costs. The company packages and ships a large amount of inventory that would have an Allen address printed on the packaging if the company relocated. They would keep a large stock of inventory at their Allen location, making it likely that the company would eventually need additional square feet of space for future expansion. The company also hosts computer conventions that bring a large number of consumers to the area to use Allen hotel and conference facilities. The company is looking for a long term relocation and would be willing to sign 10 -year lease. Vance informed the Board that the business taxes are higher in Illinois than in Texas. The Board took into consideration that 815 Enterprise Boulevard has been unoccupied since 1999 On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board approved $150,000 in incentives to be paid to the company on the following schedule: • $50,000 upon receipt of a certificate of occupancy • $50,000 upon the first anniversary of the receipt of a certificate of occupancy • $50,000 upon the second anniversary of the receipt of a certificate of occupancy Payment of incentives is contingent upon the company signing a 10 -year lease on 45,000-60,000 square feet of space in 815 Enterprise Boulevard, maintaining a minimum taxable value of $600,000 in business personal property for 10 years and maintaining 15 fulltime employees for 10 years. The Board also stipulated that the company would have to pay back a prorated amount of the incentive grant if they defaulted in any particular tax year. The Board authorized the president of the AEDC Board to negotiate and execute the contract. Consider Approval of Development Scenarios Supporting the Development of an Office Budding on Property Owned by the AEDC in Millennium Corporate Center The AFDC Board provided an incentive package to Duke Realty to support the development of a six - story, 120,000-140,000 SF Class A office building in Millennium Corporate Center. Duke is required to receive AEDC Board approval of the renderings for the building. Blair Orion, Duke Realty, presented several building renderings to the Board to seek input on the design concept to pursue. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved the building design that features a continuous parapet mound the top of the building, subject to changes based on the selection of budding materials and the final approval of architectural designs by the AEDC Board at a later date. Allen Economic Development Corporation Regular Meeting, January 18, 2006 Page 3 Consider Approval of Incentives SUDnort ng the Recruitment of Project Security to Allen Company representatives did not attend the meeting; therefore, no action was taken. Consider AUnroval of Incentives Suonortine Develonment in Allen's Central Business Distric As part of the City of Allen's plan to enhance the Central Business District (CBD) and mcmit commercial projects to the area, new infrastructure is being constructed and old infrastructure is being replaced or enhanced. St. Mary Drive is a major planned connector for the CBD, providing access between Greenville Avemm/SH5 and Allen Drive. David Hoover, City Planning Director, appeared before the Board to request the Board's consideration to provide $375,000 to assist with the final phase of the construction of St. Mary Drive. There are several commercial users that have indicated interest in the area and this thoroughfare will greatly enhance the traffic flow On a motion by Ken Fulk, seconded by Carl Clemencich, the Board approved providing up to $375,000 to assist with the final phase of the construction of St. Mary Drive to promote commercial development in the CBD. The Board authorized the president of the AEDC Board to negotiate the contract. Consider Anoroval of Incentives Sunoortme the Recruitment of Project Life to Allen Project Life desires to locate a Physical Medicine & Rehabilitation Hospital into Twin Creeks Business Park. They are currently negotiating a long-term, 40 -year lease with JaRyCo for the construction of a two-story, 35,000 SF (expandable to 50,000 SF) building with an estimated taxable value of $8.5 million (building only) and $ l.8 million (personal property). The AEDC Board previously approved incentives to facilitate the development of the medical building and also approved a recommendation for a 50%, 10 -year tax abatement from the City of Allen. Contracts were developed including the Incentive Agreement and Tax Abatement Agreement. On a motion by Ken Fulk, seconded by Carl Clemencich, the Board approved the Tax Abatement contract (to be recommended to the Allen City Council). The Board also approved the Incentive Agreement contract with the following provisions: • $300,000 incentive grant to be paid upon the company's receipt of a certificate of occupancy • Maintaining a taxable value of $10,000,000 in improvements and business personal property • The company must repay the AEDC $30,000 for any year that they are in default on the agreement The incentives are contingent upon the Board's approval of the final architectural, landscaping, lighting and site plan The Board authorized the president of the AEDC Board to negotiate and execute the contract. Allen Economic Development Corporation Regular Meeting, January 18, 2006 Page 4 Approval of AEDC Financial Reports. Dan Bowman presented the AEDC financial reports. On a motion by Ken Fulk, seconded by Tim Wood, the Board approved the AEDC financial reports as presented. Discuss Administrative and Marketing Activities of the AFDC Jennifer Grimm updated the Board on the marketing activities of the AEDC. The Allen Chamber of Commerce "Mardi Gras" Celebration will occur on January 28'" and the City of Allen grand opening for the new Senior Center will be held on January 21" Chansse distributed a memorandum between Montgomery Farm and Trademark. She also informed the Board that Hadden Landscaping has given the AEDC a quote of $10,000 to break out the water system for Millennium Corporate Center. Hadden's full proposal will be brought to the Board at a later date. Fred Gans plans to close on the remaining portion of the Ridgemom Tract in February Scheduling of Next AEDC Board of Directors Meeting. The next Regular Board meeting was scheduled for February 15, 2006 at 6:00 p.m. d' urn. On a motion by Tim Wood, seconded by Ken Falk, the meeting was officially adjourned at 8:09 p.m. These minutes approved this 15" day of February, 2006. l Lk ItL4-4 Kurt Kizer, President n Fulk, Secretary Approval of Minutes of the January 18, 2006 Regular Meeting of the AEDC Board of Directors Wording for the following item in the minutes of the Jaimary 18, 2006 AEDC Board Meeting has changed. Consider approval of Incentives Supporting the Recruitment of Project Life to Allen. Changes: The Board approved incentives for Project Life contingent upon the company maintaining a taxable value of $10,000,000 in improvements and business personal property; however, the approved minutes stated that the company must maintain a taxable value of $10,000,000 in business personal property only The minutes have been changed to state that incentives for Project Life are contingent upon the company "Maintaining a taxable value of $10,000,000 in improvements and business personal property"