HomeMy WebLinkAboutMin - Economic Development Corporation - 2003 - 07/16 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
JULY 16, 2003
Board:
Staff:
Others.
Jim Brazeal
Charisse Resume
Russell, Project Kenny
Ken Fulk
Jennifer Grimm
Bryan. Project Kemry
Kurt Kizer
Josie Zendejas
Stefan, Project Kennt•
Absent:
Tim Wood
Maxine Sweet
Call to Order and Announce a Ouorum Present
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 6:08 p.m on Wednesday, July
16, 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 June 18 2003 Regular Meeting of the AEDC Board of Directors
The minutes of the June 18, 2003 Regular Meeting of the AEDC Board of Directors were approved as
submitted on a motion by Ken Fulk, seconded by Kurt Kizer.
6:10 p in. Convene into Closed Executive Session.
1 I Pursuant to Texas Government Code, Section 551.087 Deliberation of Economic
Development Negotiations and Incentive; and Texas Government Code, Section 551.072:
Deliberate the Sale of Property Owned by the AEDC to Project Apple.
1 2. Pursuant to Texas Government Code, Section 551.087 Deliberation of Economic
Development Negotiations: Deliberate Commercial and Financial Information and Economic
Incentives for Project Kenny
1 3. Pursuant to Texas Government Code, Section 551.072 Deliberation of Real Property
Deliberate the Sale of Approximately 4.24 Acres Owned by the AEDC at the Southeast
Comer of Butler Drive and Century Parkway to Project Eagle.
Consider and Take Action for the Sale of Property Owned by the AEDC to Project Apple
The company has requested that the AEDC approve and present pricing for the Ridoemont Tract and
the front property in Millennium Corporate Center at the southwest corner of Venture and US 75.
On a motion made by Ken Fulk and seconded by Kurt Kizer, the Board approved the following offer
for the Millennium Corporate Center
• To sell the 5.5 acre site to the company for $4 00 per square foot
• The company is responsible for the cost of the overflow parking for one row of parking (26
additional spaces)
• The AEDC will contribute the design plans already completed for the project (valued at
$100,000)
Allen Economic Development Corporation
Regular Meeting, July 16, 2003
Page 2
• Contingent upon the current building, designed by the AEDC, being constructed
• Approval by the AEDC Board on the architectural. lighting and landscaping plans
• The company cannot purchase the land and resell to another user
On a motion made by Kurt Kizer and seconded by Ken Fulk. the Board approved the following offer
for the Ridgemont site.
9.29 acres (usable) for $1.00 per square foot
• Approval by the AEDC Board on architectural, lighting and landscaping plans
• The company cannot purchase and resell the property to another user.
Consider and Take Action for the Approval of Incentives for Proiect Kenny.
Representatives Russell, Stefan, and Bryan with Project Kenny presented the AEDC Board of
Directors their plans for possibly relocating to Allen and requested incentives in the form of tax
abatement and cash grants to subsidize the cost of relocating to Allen. They are very interested in the
ktera building, which has an existing 40% tax abatement for 10 years. On a motion made by Ken Fulk
and seconded by Kurt Kizer, the Board approved a performance -driven cash grant of $20,000 annually
for three consecutive years and a recommendation to the City, County and CCCCD for a 40% tax
abatement for 5 years subject to Board's approval of the company's financial statements. The contracts
will be based on the company maintaining a minimum of 15 employees and a minimum of $6 million
taxable value on the local tax rolls.
Consider and Take Action for the Sale of Approximately 4 14 Acres Owned by the AEDC at the
Southeast Comer of Butler Drive and Century Parkway to Project Ea -le.
The Company's Board of Directors met and decided not to pursue the purchase of the 4.24 acres
owned by the AEDC at the southeast corner of Butler Drive and Century Parkway Ken suggested that
we offer to trade the land for a piece of property that the Company owns elsewhere in Allen. The
general consensus was to pursue the land swap.
Consider and Take Action on a Recommendation to the Allen Citv Council for Distribution of
Hotel/Motel Tax Revenues for Fiscal Year 3003-04
The Subcommittee presented its recommendations for the distribution of hotel/motel funds. It was
explained that the recommendation was based on those projects that will potentially generate hotel
rooms and fit within the categories defined by state law The subcommittee's recommendations were
approved on a motion by Ken Fulk, seconded by Kurt Kizer. The recommendation will be submitted to
the Allen City Council for consideration as part of the City budget process.
Consider and Take Action on a Recommendation to the Allen Citv Council Reoardina tie
Continuation of Tax Abatement Incentives for Metro-Opnx
On a motion made by Ken Full, and seconded by Kurt Kizer, the Board approved a recommendation to
the Allen City Council to discontinue the tax abatement for 2003 and future years for Metro-Optix
(because they are no longer in business) and to seek the recapture of back taxes. The recommendation
will be forwarded to the City, and upon their approval a subsequent letter w ill be sent to the company
explaining the default and repayment process.
Allen Economic Development Corporation
Regular Meeting, July 16, 2003
Page 3
Consider and Take Action on a Recommendation to the Allen City Council Re ardine the
Continuation of Tax Abatement Incentives for Daisvtek
The Board discussed the tax abatement in place for Daisytek, which is not in contract compliance for
the 2003 tax abatement consideration. The company has filed bankruptcy, which automatically puts it
into default. On a motion made by Ken Fulk and seconded by Kurt Kizer, the Board approved a
recommendation to the Allen City Council to discontinue the tax abatement for 2003 and future years
for Daisytek and to seek the recapture of back taxes. The recommendation will be forwarded to the
City, and upon their approval a subsequent letter will be sent to the company explaining the default
and repayment process.
Consider and Take Action on the Approval of the Allen Economic Development Corporation's Budget
for Fiscal Year 2003-2004.
The Board reviewed the Allen Economic Development Corporation's budget for fiscal year 2003-
2004. On a motion made by Ken Fulk and seconded by Kurt Kizer, the Board approved the budget as
presented adding the revised personnel salary figures which will be provided to the City's Finance
Department. The budget will be presented to the City Council and considered as part of the City
budget process
Approval of AEDC Financial Reports
Josie Zendejas presented the financial statements for June 2003. She pointed out the revisions made to
reflect the new budget projections for the remainder of the current fiscal year. The financial report was
approved on a motion by Ken Fulk, seconded by Kurt Kizer,
Discuss Administrative and Marketin¢ Activities of the AEDC
The Board was updated on a number of activities. Jennifer Grimm reported that the nomination forms
for the Millennium Awards 2003 will be ready for review by the subcommittee during the week of
Julv 21 Ken has not been able to contact Philip Williams to provide the research results which Mr.
Williams had requested. Ken has left several messages and will follow-up and report during the next
AEDC Board meeting. An explanation of SB 972 was given to the Board. The bill in essence requires
a municipality to eliminate the 4A and/or 4B corporations in order to enter into a mass transit
authority The bill permits the city to eliminate the 4AAB corporations and enter into a mass transit
authority with the same election.
9 40 p.m Convene into Closed Executive Session,
1 4. Pursuant to Texas Government Code, Section 551.074 Personnel Annual Performance
Evaluation of Executive Director/CEO.
10.00 p in. Reconvene into Regular Session
Consider and take Action Related to the Performance Evaluation of the Executise Director/CEO of the
AEDC.
The Board of Directors considered the performance evaluation of the Executive Director/CEO and on
a motion made by Kurt Kizer and seconded by Ken Fulk, approved a raise in base salary b} $10.000
Allen Economic Development Corporation
Regular Meeting, July 16, 2003
Page 4
and an incentive pay of $5.000 effective immediately They also approved a 55% incentive pay bonus
for the Marketing Director and E.D. Analyst.
Scheduling of Next AEDC Board of Directors Meetim,
The next board meeting was scheduled for Wednesday, August 20, 2003 at 6:00 p.m.
Adioum.
On a motion by Kurt Kizer, seconded by Ken Fulk, the meeting was officially adjourned at 10:10 p m.
These minutes approved this 20" day of August, 2003.
Jimrah zeah President Kenneth Fulk. Secretary