HomeMy WebLinkAboutMin - Economic Development Corporation - 2003 - 05/14 - RegularBoard
Jim Brazeal
Tim Wood
Ken Folk
Maxine Sweet
Kurt Kizer
ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
MAY 14, 2003
Staff:
Charisse Resume
Jennifer Grimm
Call to Order and Announce a Quorum Present
Others
David Hoover, Cin, of Allen
Mike - Project Choice
Chris - Project Choice
With a quorum of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Jim Brazeal at 6.10 p.m. on Wednesday, May
14, 2003 in the Conference Room of the Allen Economic Development Corporation, 100 Allentown
Parkway, Suite 211, Allen, Texas The following items were discussed.
Approve Minutes of the April 16, 2003 Regular Meeting of the AEDC Board of Directors
The minutes of the April 16, 2003 Regular Meeting of the AEDC Board of Directors were approved
as submitted on a motion by Ken Fulk, seconded by Maxine Sweet.
6:15 p.m. Convene into Closed Executive Session
1 1. Pursuant to Texas Government Code, Section 551.087 Deliberation of Economic
Development Negotiations: Deliberate Commercial and Financial Information and
Economic Development Incentives for Project Choice.
12. Pursuant to Texas Government Code, Section 551.087 Deliberation of Economic
Development Incentives: Discuss the Development of an Office Building on Property in
Millennium Corporate Center Owned by the AEDC.
6*25 p.m. Reconvene into Regular Session.
Consider and take Action to Approve Economic Development Interni 'es for Project Choice
Project Choice previously appeared before the AEDC Board and requested incentives. Since that
time, they have committed to signing a lease on office space in Allen until 2010. They also adjusted
the previous numbers provided. The company will nos provide 400 jobs in 2003 and 500jobs for
years 2004-2009 They will also provide a minimum personal properp tapable value as follows:
2003 $2.3 million
2004 $3 million
2005-2009 $3.5 million
Based on the company, maintaining the above criteria, the Board approved on a motion by Maxine
Sweet. seconded by Ken Fulk to provide incentives (prorated off the previous incentives offered) to
be $30,000 per year for 7 }ears. All other conditions of the previous contract will remain the same.
Allen Economic Development Corporation
Regular Meeting, May 14, 2003
Page 2
Consider and take Action on the Development of an Office Building on Property- in Mi Ilennmm
Corporate Center owned by the AEDC
The Board reviewed the revised Letter of Understanding received from a developer and discussed the
sharing of development fees and the rate of return expected on the project. On a motion by Maxine
Sweet, seconded by Kurt Kizer, the Board approved its general agreement with the Letter of
Understanding and gave the Subcommittee authority to act on the Board's behalf to further negotiate
and settle issues related to the rate of return for investors as outlined in Item 9 of the document. It was
the general consensus of the Board that the document still gives flexibility to determine the sharing of
fees as the project moves forward
Consider and take Action for the Reconfiguration of the Northern Detention Pond on Lot 4 Block 3
Millennium Business Park
The Board discussed the submitted bids and the disparity of the amounts submitted for borrowed
material. All the bids were above the estimate provided by Corwin Engineering. The Board discussed
the possibility of reusing the existing pipe to save costs It was pointed out that none of the bids
included reseeding the property and that would be an additional expense in the future. On a motion by
Maxine Sweet, seconded by Ken Folk the Board approved the following:
I. Staff will visit with the City Engineer to see if the City will permit the reuse of existing pipe
and who maintains the line thereafter:
2. Have Corwin Engineering contact the three lowest bidders for their interest in doing the
project with a cost not to exceed $175,000 and the requirement that they are to reuse the
existing pipe (if permitted by the City);
3. Have the construction begin immediately;
4. Authorized Jim Brazeal to execute a contract with a vendor for approximately $175,000.
Approval of AEDC Financial Reports
Charisse Resume presented the financial statements for April 2003. It was reported that sales tax
(based on March sales) was up 7.01% over budget for the month. It is the first month over budget for
the fiscal year The financial report was approved on a motion by Ken Fulk, seconded by Maxine
Sweet.
Discuss Administrative and Marketing Activities of the AEDC
The Board was updated on a number of activities.
• Jennifer Grimm reported the agenda has been set for ICSC with six a isits scheduled.
• A copy of the City Strategic Plan was made available for members to vjew. It was reported
the City has established a Retail Task Force to augment the AEDC's retail recruitment
activities.
• The Board was updated on a pending zoning case on the property located at the Northwest
Corner of Bethany Drive and Watters Drive, which is across from the AEDC's Millennium
Corporate Center. The re -zoning will change the setback allowance to 25' and permit Daycare
use. The Board did not object to the changes.
Allen Economic Development Corporation
Regular Meeting, May 14, 2003
Page 3
Daisytek has filed for bankruptcy, which is a condition of default in their tax abatement
agreement. Charisse will contact the company and also have the AEDC attorney, Pete Smith,
draft a non -adversarial letter explaining the contract and default status. The goal is to open
conversations with the company and find an amicable resolution. The company met all the
valuation requirements for 2002, which was the first year of abatement.
Philip Williams approached Ken Falk about the ongoing issue of what is owed for the
construction of Bethany Drive by the AFDC. Ken is researching all the back data and will
continue conversations with Philip. The AEDC will withhold legal action pending these
conversations.
Tim Wood and Kurt Kizer were selected to serve on the AEDC subcommittee to review the
applications for hotel/motel funds. They will meet sometime during the week of July 7'"
Update on Legislative Activities
It was reported that the HB 2912 (affecting 4A/4B Corporations) passed the House and went to the
Senate State Affairs Committee on May 13, 2002.
ScheduI in of Next AEDC Board of Directors Meetin¢
The next board meeting was scheduled for Wednesday, June 18, 2003 at 6.00 p.m.
Adioum.
On a motion by Kurt Kizer, seconded by Ken Fulk, the meeting was officially adjourned at 8:07 p.m
These minutes approved this 18°i day of June, 2003
hm Br eal. President
Al.
2nneth Fulk, Secret ry