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HomeMy WebLinkAboutMin - Economic Development Corporation - 2005 - 07/20 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS REGULAR MEETING July 20, 2005 Board Staff Guests Kurt Kizer Charisse Canfield Ted Munger Tim Wood Jennifer Grimm Tom Lacey Ken Fulk Dan Bowman Gregory Smith Maxine Sweet Carl Clemencich Call to Order and Announce a Ouomm Present. With a quorum of the Board present, the Regular Meeting of the Allen Economic Development Corporation (AEDC) was called to order by President Kurt Kizer at 6:07 p.m. on Wednesday, July 20, 2005 at the AEDC Office. The following items were discussed: Aporove Minutes of the June 15, 2005 Regular Meeting and the June 30, 2005 Soecial Called Meeting of the AEDC Board of Directors. The minutes of the June 15, 2005 Regular Meeting and the June 30, 2005 Special Called Meeting of the AEDC Board of Directors were approved as submitted on a motion by Carl Clemencich, seconded by Ken Folk. Consider and take Action Regardine the Compliance Status of ICBS ICBS, a provider of telecommunication services including installation, switching and transmission repair, custom cables and software support, is located at 606 Millennium Drive in Millennium Technology Park. Tom Lacey and other members of his family own the building in which ICBS is located. The company originally negotiated a 40%, 10 year tax abatement with the local taxing authorities that became effective in 2000. The company received the benefit of tax abatement for tax years 2000, 2001 and 2002. In 2003 and 2004, the company was not able to meet its contractual requirements and Lacey appeared before the AEDC Board to request a recommendation to forgive the past abated taxes and to terminate the abatement. The AEDC did not make a recommendation for the forgiveness of the past abated taxes and opted to have Lacey appear annually to discuss his situation. ICBS will not meet the contractual requirements of the tax abatement agreement for 2005. Tom Lacey appeared before the Board to request any consideration for leniency the Board will give regarding his current non-compliance status. ICBS was significantly impacted by the downturn in the U.S. economy, which caused them to reduce their employees and space requirements. ICBS has been actively recruiting companies to fill vacant space in the ICBS building and expects to secure another major tenant in the near future. Allen Economic Development Corporation Regular Meeting, July 20, 2005 Page 2 Lacey does not anticipate the company being in compliance with the terms of the agreement in future years. He is willing to pay the abated taxes, but requested that the Board waive the penalty. He also asked for consideration in structuring the payments over time, due to current fmancial restrictions on the company. On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved waiving the penalty fees associated with the payment of abated taxes, conditional upon the company repaying the abated taxes according to the following schedule: • Abated taxes in the amount of $16,469 from tax year 2000 must be paid in full by June 2006 • Abated taxes in the amount of $16,774 from tax year2001 must be paid in full by June 2007 • Abated taxes in the amount of $16,633 from rax year 2002 must be paid in full by June 2008 Convene into Closed Executive Session. The Board convened into closed executive session at 6:54 p.m. to deliberate commercial and economic incentives supporting the expansion of Project Safeguard in Allen. Reconvene into Regular Session. The Board reconvened into regular session at 7:35 p.m. Consider and take Action for the Approval of Incentives Supporting the Expansion of Project Safeguard in Allen. Project Safeguard provides data validation through innovative technology and cutting edge data transmission. The company is currently located at 206 W McDermott in the Allen Chamber of Commerce building. The company has been in conversations with Bruce Heller, JaRyCo, to construct a 12,000 SF stand alone building in the Corporate Center at Twin Creeks. The building would be owned by a partnership consisting of members of Project Safeguard. They plan to own the building and then lease 5,000 SF back to the company with an additional 7,000 SF of space available for other tenants. Greg Smith, President and CEO of Project Safeguard, appeared before the Board to request incentives to support the relocation of the company. Project Safeguard's relocation decision hinges upon whether the AEDC is willing to provide incentives. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved an infrastructure incentive up to $40,000, based upon infrastructure costs incurred by Project Safeguard for which receipts are provided. The Board further approved an incentive grant of $30,000 to be paid upon receipt of a certificate of occupancy for Project Safeguard. The Board approved allowing Greg Smith to decide how the $30,000 will be divided between the developer and the company. These incentives are contingent upon the building having a minimum value of $1.5 million on the local tax rolls, the architecture, landscaping and lighting being consistent with surrounding developments and Project Safeguard maintaining I employee at the facility. Allen Economic Development Corporation Regular Meeting, July 20, 2005 Page 3 Consider and take Action on the Approval of the Allen Economic Development Corporation's Budget for Fiscal Year 2005-2006 and Adjustments to the Budget for Fiscal Year 2004-2005 Charisse Canfield presented the AEDC 2005-06 FY budget and recommendations for adjustments to the 2004-05 FY budget. Increases (of note) in the 2004-2005 AEDC budget accounts included: • Direct Grants/Incentives — for the payment of incentive grants approved by the AEDC Board during the current fiscal year. • Ridgemont Tract — for placing electric and telecommunications lines underground and installing the road on the northern tract. • Marketing — $25,000 increase for regional marketing effort. C operational expenses budgeted for Fiscal Year 2005-2006 only increased by approximately $25,000 over Fiscal Year 2004-2005. The general consensus of the Board was to wait on budgeting construction expenses related to development in Millennium Corporate Center until a commitment has been made to develop the site. The adjustment would possibly occur during the mid -year adjustments for Fiscal Year 2005-2006. On a motion by Tim Wood, seconded by Carl Clemencich, the Board approved the Allen Economic Development Corporation's budget for Fiscal Year 2005-2006 and adjustments to the budget for Fiscal Year 2004-2005 as presented. Aooroval of AEDC Financial Reports Dan Bowman presented the AEDC financial reports and the final compliance values for Allen companies that have rax abatement and incentive contracts with the AFDC. On a motion by Tim Wood, seconded by Ken Fulk, the Board approved the AEDC financial reports as presented. Discuss Administrative and Marketmg Activities of the AFDC. Jennifer Grimm updated the Board on marketing activities of the AEDC and described the AEDC's advertisement for the DFW Marketing Team booth that will be displayed at upcoming trade shows. The AEDC has purchased a toll free telephone number (1-877-4-ALLENTX) for marketing purposes. Jennifer also updated the Board on the progress of the Collin County Regional Marketing Team, explaining that the group is currently in the process of developing a regional website for marketing the area that would include such features as a "cost of living calculator" for Collin County. Jennifer expects that all Millennium Business Award Nominations will be received by Friday, July 22n°. The AEDC subcommittee will meet the week of July 25" to select the award recipients. Chansse updated the Board on upcoming AEDC meetings. A schedule of AEDC meetings will be e-mailed to Board members so they can select meetings to attend. The Board requested a list of subcommittees be distributed at the next AEDC Board Meeting. Convene into Closed Executive Session. Allen Economic Development Corporation Regular Meeting, July 20, 2005 Page 4 The Board convened into closed executive session at 8:46 p.m. to consider and take action related to the performance evaluation of the Executive Director/CEO of the AFDC. Reconvene into Regular Session The Board reconvened into regular session at approximately 9:25 p.m. Consider and take Action Related to the Performance Evaluation of the Executive Director/CEO of the AEDC. The Board of Directors considered the performance evaluation of the Executive Director/CEO and on a motion by Carl Clemencich, seconded by Ken Falk, approved a raise in base salary and an incentive pay bonus effective immediately. The Board also authorized the Executive Director to provide the Marketing Director and Economic Development Analyst with an incentive pay bonus. Scheduling of Next AEDC Board of Directors Meeting. The next Regular Board meeting was scheduled for August 17' at 6:00 p.m. A Special Called Board meeting will be held on August 11" at either 5:00 or 6:00 p.m. Adioum. On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at 9:30 p.m. These minutes approved this 17s' day of August, 2005. i !