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HomeMy WebLinkAboutMin - Economic Development Corporation - 2007 - 01/17 - RegularCall 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 6:15 p.m. on Wednesday, January 17. 2007 at the AEDC Office. Consent Agenda On a motion by Maxine Sweet, seconded by Mark Pacheco, the Board voted unanimously to remove Agenda Item No. 2 from the consent agenda and adopt the consent agenda as follows: 1 Approval of Minutes of the December 13, 2006 Regular Meeting The motion carred. 2. Amiroval of the Architectural. Landscaoina. Liehting and Site Plans for Allen Towne Situate. LT Allen Towne Square L.P is planning to construct a multi -use "town community center" development at the southwest comer of Cedar Drive and McDermott Drive. The AEDC Board previously approved an Economic Development Agreement for the payment of incentives to support this development. The agreement stated that payment of incentives is contingent upon Allen Town Square L.P. obtaining approval of the Architectural, Landscaping, Lighting and Site Plans for the project. Architectural renderings and the site plan for the development were presented to the Board. Carl Clemencich mentioned that the site plan did not show any screening between the development and the adjacent residential neighborhood. David Hoover assured Clemencich that the developer is planning to construct an eight foot masonry wall between the development and the neighborhood. Robert Winningham informed the Board that the landscaping and lighting plans for the development were not submitted for approval. The Board discussed City of Allen regulations regarding lighting and landscaping of commercial buildings. ALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS REGULAR MEETING January 17, 2007 Board Staff Guests Kurt Kizer Robert Winningham Pete Smith Tim Wood Jennifer Gomm David Hoover Carl Clemencich Daniel Bowman Tom Carter Mark Pacheco Gar Herring Maxine Sweet Buddy Herring Kevin Cummings Barry Knight David Stautz 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 6:15 p.m. on Wednesday, January 17. 2007 at the AEDC Office. Consent Agenda On a motion by Maxine Sweet, seconded by Mark Pacheco, the Board voted unanimously to remove Agenda Item No. 2 from the consent agenda and adopt the consent agenda as follows: 1 Approval of Minutes of the December 13, 2006 Regular Meeting The motion carred. 2. Amiroval of the Architectural. Landscaoina. Liehting and Site Plans for Allen Towne Situate. LT Allen Towne Square L.P is planning to construct a multi -use "town community center" development at the southwest comer of Cedar Drive and McDermott Drive. The AEDC Board previously approved an Economic Development Agreement for the payment of incentives to support this development. The agreement stated that payment of incentives is contingent upon Allen Town Square L.P. obtaining approval of the Architectural, Landscaping, Lighting and Site Plans for the project. Architectural renderings and the site plan for the development were presented to the Board. Carl Clemencich mentioned that the site plan did not show any screening between the development and the adjacent residential neighborhood. David Hoover assured Clemencich that the developer is planning to construct an eight foot masonry wall between the development and the neighborhood. Robert Winningham informed the Board that the landscaping and lighting plans for the development were not submitted for approval. The Board discussed City of Allen regulations regarding lighting and landscaping of commercial buildings. Allen Economic Development Corporation Regular Meeting, January 17, 2007 Page 2 On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board voted unanimously to approve the architectural and site plans for the multi -use development being constructed by Allen Towne Square L.P at the southwest comer of Cedar Street and McDermott Drive. The Board waived the requirement for AEDC Board approval of the landscaping and lighting plans for the development. Regular Aeenda 3. Consider and Take Action for Approval of Changes to the Design of the Landscaped Common Park Area and Monument Sienase in Allen Central Pazk Duke representatives were not able to appear before the Board to discuss proposed changes to the design of the landscaped common park area and monument signage in Allen Central Park. No action was taken on this item. 4. Citizens' Comments No citizen comments were made. 5. Convene into Closed Executive Session. The Board convened into closed executive session at 6:25 p.m. to deliberate commercial and financial information and economic incentives for the following: • Discussion of the Development of the Village at Allen, L.P • Development of Allen Station Business Park Reconvene in Open Session. The Board reconvened into regular session at 7 42 p.m. 6. Consider and Take Action for the Development of the Village at Allen, L.P Representatives from the Village at Allen, L.P appeared before the Board to request incentives to support the Village at Allen development located at the southeast comer of Stacy Road and US 75. Tom Carter, Trademark Property Company, also appeared before the before to discuss the impact the Village at Allen will have on the Watters Creek at Montgomery Farm development, currently under construction at the southwest comer of Bethany Drive and US 75. Carter informed the Board that in his opinion, the Village at Allen development does not pose significant competition for the Watters Creek at Montgomery Farm Development. Rather, Carter explained that the Village at Fairview development, planned for the northeast corner of Stacy Road and US 75, would hurt both the Watters Creek development and any potential development on the tract owned by General Growth Properties at the southwest comer of US 75 and SH 121. Carter stated that successful retail developments typically occur in five or six mile increments. The Village at Fairview is located too close to both the General Growth's property and Watters Creek, and will pose serious competition that could potentially cause all three developments to fail. Allen Economic Development Corporation Regular Meeting, January 17, 2007 Page 3 Carter believes that the MG Herring Group is trying to move forward quickly with the Village at Allen because the Village at Fairview is no longer a viable development. The department stores that have been recruited to the Village at Fairview do not pay rent; rather, a variety of other tenants that could possibly locate new the department stores would pay rent and make the development profitable. Carter stated that of the approximately 150 tenants that could possibly located to the Village at Fairview, only 100 currently have expansion plans. Trademark has secured contracts or letters -of - intent with 65 of those tenants, and Carter does not believe that there are enough tenants remaining to make the Village at Fairview profitable. Carter also insisted that there would not be any duplication of tenants between the Village at Fairview and Watters Creek, since stores that did so would "cannibalize" (compete with) themselves and not be able to make their required sales quotas. Carter stated that 25% of all Watters Creek leases are signed, 12% of leases will eminently be signed, and 24% are approved through a committee by the tenants. The effect of a possible retail development by MG Herring Group is decreasing lease rates at Watters Creek by 10-15%. Carter suggested that the AEDC Board request copies of the contracts between the MG Herring Group and the department stores that we purported to locate at the Village at Fairview This would be in the City of Allen's interest, since the Village at Allen has low visibility and will likely have poor performance if the Village at Fairview does not develop. Carter also believes that General Growth Properties is exploring the development of major retail on their site at SH 121 and US 75. Kurt Kizer inquired as to whether the location of a specialty grocer in the Village at Allen would have a negative impact on Watters Creek. Carter responded that it would, since specialty grocers typically have very low margins. Carter believes that if the Village at Fairview is not developed, and if the Village at Allen does not contain a specialty grocer, a bookstore, or a theater, then the MG Herring Group's proposed development will not have a negative impact on Watters Creek. Carter gave the Board an update on Watters Creek, stating that Trademark Property Company has negotiated several important retail leases. It is expected that "Gen X" type tenants, such as American Eagle and Pac Sun, will likely locate at Watters Creek instead of the MG Hering Group's developments. Trademark is also planning to construct office space and loft apartments at Watters Creek, and is in the process of recruiting a neighborhood pub. It is unlikely that Crate & Barrel will open a retail location in Allen. Watters Creek will have stores that sell the types of products that people typically go to department stores to buy, such as suits, shoes and cosmetics. Carter also mentioned that retail developers typically request financial information from potential tenants before negotiating a lease. 5. Convene into Closed Executive Session. The Board convened into closed executive session at 8:53 p.m. to deliberate commercial and financial information and economic incentives for the following: • Discussion of the Development of the Village at Allen, L.P • Development of Allen Station Business Park Reconvene in Open Session. The Board reconvened into regular session at 9'44 p.m. Allen Economic Development Corporation Regular Meeting, January 17, 2007 Page 4 6. Consider and Take Action for the Development of the Village at Allen. L.P. No action was taken on this item. The general consensus of the Board was to discuss this item further in a meeting with representatives from the AEDC Board and the Allen City Council before making a decision. 7 Consider and Take Action for the Development of Allen Station Business Park No action was taken on this item. 8. Approval of AEDC Financial Reports Daniel Bowman presented the AEDC Financial Reports. On a motion by Tim Wood, seconded by Carl Clemencich, the Board unanimously approved the AEDC Financial Reports as presented. 9 Discuss Administrative and Marketing Activities of the AFDC. Jennifer Grimm updated the Board on the marketing activities of the AFDC. Maxine Sweet informed the Board that she will be representing Allen in an upcoming "Dancing with the Stars" competition on February 3itl and requested that Board members support her in this endeavor. The competition will be a fundraiser for Allen Community Outreach. Mark Pacheco inquired as to the status of Project Exhale. The company has not currently made a decision, but is being required by the building owner to make a decision before the end of the week. 10. Consider and Take Action on the Addition of a Senior Administrative Assistant Robert Winningham updated the Board on the AEDC staffs need for an executive assistant. Since Winningham entered into the position of Executive Director, AEDC staff member functions have changed. Jennifer Grimm's job functions have changed to include a greater involvement in recmiting retail projects and workforce development, while Daniel Bowman's job functions have changed to include an increased involvement in office/industrial recruitment and the development of proposals for prospects. There is no AEDC staff member that currently fills the role of administrative assistant. The AEDC Board reviewed the job descriptions used by the City of Allen for both the Administrative Assistant and Senior Administrative Assistant positions. Winningham mentioned that providing benefits to this potential employee would cost an additional 33%-04% of the proposed salary. Pacheco stated that in his recent experience, $44,000 is the minimum salary that would have to be paid to hire an adequate Senior Administrative Assistant Pacheco also suggested that the AEDC advertise an Administrative Assistant position with a lower salary, and give the new employee the opportunity to advance into a Senior Administrative Assistant position over time. On a motion by Carl Clemencich, seconded by Mark Pacheco, the Board unanimously approved the addition of an administrative assistant to the AEDC staff and authorized the Executive Director of the AEDC to initiate the process for filling the new position. Allen Economic Development Corporation Regular Meeting, January 17, 2007 Page 5 11. Executive Director's Report Robert Winningham did not add anything to the report that was presented in the packet. 12. Scheduling of Next AEDC Board of Directors Meeting. The next Regular Board meeting was scheduled for February 21, 2007 at 6:00 p.m. 13. Adjourn. On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at 10:07 p.m. These minutes approved this 2l' day of February, 2007. i Ej Kurt Kizer, siden[ Vlarlm�=�6Scretary 11