Loading...
HomeMy WebLinkAboutMin - Economic Development Corporation - 2005 - 08/17 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS REGULAR MEETING August 17, 2005 Board Staff Guests Kurt Kizer Charisse Canfield Kent Foster Tim Wood Jennifer Grimm Raymond Harnson Ken Fulk Dan Bowman Steve Chilton Maxine Sweet Cut 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 (AFDC) was called to order by President Kurt Kizer at 6:05 p.m. on Wednesday, August 17, 2005 at the AEDC Office. The following items were discussed: Approve Minutes of the July 20. 2005 Regular Meeting of the AEDC Board of Directors The minutes of the July 20, 2005 Regular Meeting of the AEDC Board of Directors were approved as submitted on a motion Maxine Sweet, seconded by Tim Wood. Convene into Closed Executive Session The Board convened into closed executive session at 6:13 p.m. to deliberate the sale of property owned by the AEDC in Millennium Corporate Center and related incentives supporting the construction of an office building and also to deliberate commercial and economic incentives supporting commercial development in the Montgomery Farm Garden District. Reconvene into Regular Session The Board reconvened into regular session at 8:42 p.m Consider and take Action for the Sale of Prooertv Owned by the AEDC and the Approval of Incentives Supporting Office Development in Millennium Corporate Center. Representatives from Opus West Corporation appeared before the Board to request incentives to help with the development of a speculative 5 -story, 130,526 square foot office building in Millennium Corporate Center. Opus West is a 53 -year old company with 28 offices across the United States. In 2004 they were ranked as the largest U.S. office developer and the second largest U.S. industrial developer. Opus presented an architectural design for consideration that is different from the BOKA Powell design that was developed for the AFDC. The Opus design included additional parking with a ratio of 5:1000 and a pre -cast and glass building structure. Allen Economic Development Corporation Regular Meeting, August 17, 2005 Page 2 Opus would prefer to develop the entire business park and envisions the fully developed park having a total of 1,413,000 square feet of office space in 7 buildings ranging from 5 to 15 stories. They presented a revised master plan for the park that included: • Puking garages constructed of pre -cast (to match the buildings) • A parking garage fronting on US 75 • Possible use of paved parking for the first building, with construction of parking garages once the second building develops • Central water feature • 5:1000 parking ratio for all buildings Opus would purchase 6 acres at the southeast comer of Epoch Drive and Venture Drive to develop the initial building. The developer plans on hiring CB Richard Ellis, the largest leasing firm in the world, to represent them in leasing space in the building. Kent Foster, Opus West, also presented an aggressive plan to market space in the building, which included visiting 12-15 corporate users per month and coordinating leasing efforts with both CB Richard Ellis and the AFDC. The Board expressed reservations regarding the proposed parking garage fronting on US 75. Steve Chilton, Opus West, assured the Board that the parking garage could be covered in greenery, used for signage or moved to another location if the Board desired. The item was tabled on a motion by Carl Clemencich, seconded by Ken Fulk and the Board recommended that both Opus West and Duke Realty revisit their proposed master plans for Millennium Corporate Center in light of feedback from the AEDC Board. Consider and take Action for the Approval of Incentives Supporting Commercial Development in the Montgomery Farm Garden District. The Montgomery Farts Garden District is the commercial portion of the Montgomery Farm Development located at the southwest comer of Bethany Drive and US 75. The Garden District consists of approximately 64 acres (exclusive of greenbelts) and contains space for retail, office, hotel and a wellness center. The project is designed as a lifestyle center with the inclusion of residential above the retail and office. The AEDC previously approved an infrastructure grant to support the commercial development and approved a recommendation to the Allen City Council for the approval of the formation of a Tax Increment Financing District with the reimbursement of 50% of the increase in ad valorem value in the TIF zone over a 20 -year period and 50% of the City of Allen sales tax generated within the development for a 10 year period. Ken Fulk updated the Board on feedback from the Allen City Council regarding incentives supporting commercial development in the Montgomery Farm Garden District. Allen Economic Development Corporation Regular Meeting, August 17, 2005 Page 3 On a motion by Ken Fulk, seconded by Tim Wood, the Board approved offering an AEDC incentive grant up to $4,635,000 for the reimbursement of infrastructure -related expenses in the Montgomery Farm Garden District, with payments to be based on 50% of the sales tax generated annually in the development for 15 years. The AEDC incentive is tied to specific performance benchmarks. Trademark must also be a partner in developing the retail portion of the development. The Board farther approved a recommendation to the Allen City Council for the formation of a TIF that would return 50% of the incremental increase in the real property ad valorem taxes generated within the development (not including the town homes) and 50% of the sales taxes generated within the development for a 10 year period. The Board further recommended that the total reimbursement within the TIF be capped at $22,710,000 and the City of Allen incentive offering be tied to specific performance benchmarks. The Board also suggested that the Allen Community Development Corporation also offer $4,635,000 in incentives to support the development. Consider and take Action on a Recommendation to the Allen City Council for the Continuation of the Policy Statement for Tax Abatement Guidelines for the City of Allen The State of Texas requires municipalities who offer tax abatements to review their tax abatement policies every two years. The current City of Allen Tax Abatement Policy was originally implemented in 1992. It provides a base for tax abatement incentives and also gives the City flexibility in going beyond the recommended amounts on a case-by-case basis. The Allen City Council is currently looking at incentives that could be used to spur development in the Central Business District, including the use of tax abatement. It was recommended that Charisse visit with Peter Vargas about amending the tax abatement policy to support this use of tax abatement at a future date. On a motion by Maxine Sweet, seconded by Ken Fulk, 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 Dan Bowman presented the AEDC financial reports. On a motion by Ken Fulk, seconded by Maxine Sweet, the Board approved the AEDC financial reports as presented. Discuss Administrative and Marketing Activities of the AEDC Jennifer Grimm updated the Board on marketing activities of the AEDC and announced the winners of the 2005 AEDC Millennium Business Awards. She thanked the subcommittee that selected the award recipients for thew efforts. The Millennium Business Awards luncheon will be held September 13' at the Hilton Hotel in Allen. Allen Economic Development Corporation Regular Meeting, August 17, 2005 Page 4 The luncheon and groundbreaking for BSM Financial is planned for September 2& and the NTCAR Expo will occur on September 28'". Jennifer invited the Board to attend a gala on November 196 to raise money for the Real Estate Council Foundation, an organization that redevelops inner-city real estate. Ajoint AEDC and Allen City Council Workshop will be held on August 30'" Dan distnbuted the recently compiled 2005 Allen Wage & Benefit Survey results to the Board. Scheduling of Next AEDC Board of Duectors Meetine. The next Regular Board meeting was scheduled for September 21" at 6:00 p.m. Adjourn. On a motion by Ken Fulk, seconded by Maxine Sweet, the meeting was officially adjourned at 9:03 p.m. These minutes approved this 21" day of September, 2005. i Kurt Kizer, President Ken Fulk, Secretary