HomeMy WebLinkAboutMin - Economic Development Corporation - 2003 - 08/20 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
AUGUST 20, 2003
Board:
Staff:
Others:
Jim Brazeal
Charisse Reaume
Rick Stacy, Stacy Furniture
Ken Fulk
Jennifer Grimm
Chris Ryan, Xtera
Kurt Kizer
Josie Zendejas
Kris Shankar, Metro-Optix
Tim Wood
Absent:
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 (AFDC) was called to order by President Jim Brazeal at 6:12 p.m. on Wednesday, August
20, 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 July 16. 2003 Regular Meeting of the AEDC Board of Directors
The minutes of the July 16, 2003 Regular Meeting of the AEDC Board of Directors were approved as
submitted on a motion by Ken Fulk, seconded by Tim Wood.
6:20 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
Incentives for Project Fairway.
1.2. 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.
7:10 o m. Reconvene into Regular Session
Consider and take Action for the Approval of Incentives for Project Fairway.
Rick Stacy, Stacy Furniture, discussed tentative plans to purchase the vacant Kmart building in Twin
Creeks Village Shopping Center on the northwest corner of US 75 and McDermott Drive. He plans to
open a store following the design of his existing family-owned facility in Grapevine and wishes to
expand into this market. The store would feature an interior street with multiple store fronts. Stacy
requested assistance with the infrastructure costs and a possible sales tax rebate to assist with the
extensive finish -out costs.
Allen Economic Development Corporation
Regular Meeting, August 20, 2003
Page 2
On a motion made by Ken Fulk and seconded by Kurt Kizer, the Board approved a recommendation to
the City Council for a 50% rebate of the 1% City sales tax up to 10 years with a $1 million cap. The
rebate will be paid annually on the anniversary date of the certificate of occupancy.
The Board also approved an economic development incentive grant from the AEDC up to $100,000
for qualified infrastructure costs. Pete Smith will list the qualified uses in the incentives contract and
the documentation of expenses will be required from Stacy Furniture for reimbursement by the AFDC.
Consider and take Action for the Sale of Property Owned by the AEDC to Project App
Charisse reported that Allen is still being considered as a location for their new facility. Company
representatives were not present and asked for no action to be taken at this meeting.
Consider and take Action on a Recommendation to the Allen City Council Regarding the Recapture of
Tax Abatement Incentives for Metro-Optix.
Metro-Optix ceased operations in Allen on June 20, 2003. On July 16, 2003, the AEDC approved a
recommendation to the City for the removal of the tax abatement for 2003 and future years and to seek
recapture of the back taxes that were abated. Chris Ryan, Xtem Telecommunications, and Kris
Shankar, Metro-Optix, discussed with the Board their desire to have the back taxes forgiven.
Foremost, Xtera would like to purchase Metro-Optix' assets and the lien on the personal property has
caused concern with their funding source. Xtem would maintain the taxable value in Allen following
the asset acquisition. After discussion, on a motion made by Kurt Kizer and seconded by Tim Wood,
the Board agreed to make a recommendation for the City of Allen to forgive the city's back taxes
owed by Meno-Optix contingent upon Xtera purchasing the assets. The Board further expressed that in
addition to maintaining the value in Allen, the measure is a show of goodwill towards Xtera and their
continued growth and operations in Allen.
Consider and take Action for the Approval of the Amended and Restated Economic Development
Agreement for Chelsea Allen Development L.P.
On January 1, 2003, the AEDC Board approved the major deal points of the contract. On a motion
made by Ken Fulk and seconded by Kurt Kizer, the Board approved the amended and restated
economic development agreement for Chelsea Allen Development, L.P. (Jim Brazeal had previously
been authorized to execute and negotiate the contract).
Consider and take Action on a Recommendation to the Allen Citv Council Resardine the Continuation
of Tax Abatement Incentives for InterCommercial Business Svstems (ICBS).
InterCommercial Business Systems (ICBS) currently occupies only a portion of their original space
and has hired Mark V Realty to market sublease space. The company has been hit hard by the
economy as a telecom -related independent contractor. Tom Lacey, CEO, sent a letter requesting the
AEDC to consider a recommendation for the removal of the tax abatement for 2003 and future years,
asking for leniency for non -recapture of the previous years' taxes based on the financial hardship this
would impose. The company is not delinquent in their tax payments. After discussion, the Board
approved, on a motion made by Kurt Kizer and seconded by Ken Fulk, to waive default for the 2003
Allen Economic Development Corporation
Regular Meeting, August 20, 2003
Page 3
tax year and to reconsider the company's status in 2004 (the action included a recommendation to the
City to remove the abatement for 2003).
Consider and take Action on a Recommendation to the Allen City Council for the Continuation of the
Policv Statement for Tax Abatement Guidelines for the City of Allen
On a motion by Ken Falk, seconded by Tim Wood, the Board approved a recommendation to the
Allen City Council for the approval of a resolution renewing and extending the policy for tax
abatement guidelines for the City of Allen.
Approval of AEDC Financial Reports.
Josie Zendejas presented the financial statements for July 2003. The financial report was approved on
a motion by Tim Wood, seconded by Ken Fulk.
Discuss Administrative and Marketine Activities of the AEDC
Jennifer Grimm invited Board members to attend the NTCAR Expo at the Hotel Intercontinental on
Thursday, September 4, from 4:00 p.m. to 8:00 p.m. The AEDC will have a booth marketing Allen
during the show.
It was reported Ceterus is launching their product during the week of August 25
Charisse spoke to the Board about the procedures for the pending local option election allowing
beer/wine sales in Allen. The election is tentatively scheduled for February. A steering committee is
being developed to organize the effort. The AEDC Bond agreed that, as a City Board, it would not
take a leading role in organizing the campaign; however, Bond members may participate in the effort
on a personal level.
Scheduline of Next AEDC Board of Directors Meetins.
The next bond meeting was scheduled for Wednesday, September 17, 2003 at 6:00 p.m.
Adiourn.
On a motion by Tim Wood, seconded by Ken Falk, the meeting was officially adjourned at 8:53 p.m.
Allen Economic Development Corporation
Regular Meeting, August 20, 2003
Page 4
These minutes approved this 170 day of September, 2003.
`,Jim Brazeal, President J Kenneth Fulk, Se retary