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HomeMy WebLinkAboutMin - Economic Development Corporation - 2005 - 10/19 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS REGULAR MEETING October 19, 2005 Board Staff Guests KurtKizer Charisse Bodisch Charles Edwards Tim Wood Jennifer Grimm Dennis Sheridan Ken Fulk Dan Bowman Fred Gans Maxine Sweet Dale Caraway Carl Clemencich - Absent Carl Johnson Call to Order and Announce a Quorum 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 6:00 p.m. on Wednesday, October 19, 2005 at the AEDC Office. The following items were discussed: Election of Officers for the Allen Economic Development Corporation Board of Directors. Officers were elected for the current fiscal year. Kurt Kizer was elected president by acclamation as nominated by Maxine Sweet and seconded by Ken Folk. Tim Wood was elected Vice President by acclamation as nominated by Ken Fulk and seconded by Maxine Swat. Ken Fulk was elected Secretary/Treasurer by acclamation as nominated by Tim Wood and seconded by Maxine Sweet. The officers will serve in these capacities until October 2006. Approve Minutes of the September 21 2005 Regular Meeting of the AEDC Board of Directors The minutes of the September 21, 2005 Regular Meeting of the AEDC Board of Directors were approved as submitted on a motion Maxine Sweet, seconded by Ken Fulk. Convene into Closed Executive Session. The Board convened into closed executive session at 6:03 p.m. to discuss financial information and incentives supporting the development of office/tech/warehouse space in Allen Business Center and to deliberate the sale of property owned by the AEDC at the southeast comer of Ridgemont Drive and US 75 to support the development of an office building and also to deliberate the sale of property owned by the AEDC at the southeast comer of Century Parkway and Butler Drive to support the development of an office/warehouse building. Reconvene into Regular Session. The Board reconvened into regular session at 7:42 p.m. Allen Economic Development Corporation Regular Meeting, October 19, 2005 Page 2 Consider and take Action for Incentives Supporting the Development of Office/Tech/ Warehouse Space in Allen Business Center. Allen Business Center is a 54,000 SF red brick building located in Allen Business Park at the northwest comer of Bethany Drive and Greenville Avenue. Allen Business Center representatives have consistently been successful in renting space to smaller office/tech users and start-up businesses that eventually expand to take more space. Dennis Sheridan, representing the Allen Business Center owners/investors, appeared before the Board to request incentives to support the construction of another approximately 60,000 square foot building in Allen Business Center on land that they own adjacent to the existing building. The building would be constructed on a speculative basis and offer low rents to small to mid-size tenants. The leases would cover all exterior costs while the ter ants pay any interior costs. They plan to use the same type of brick as Allen Business Center in constructing the building and would design the building to be more architecturally interesting. Given the competitive market, in order to maintain a lower lease rate, it is cost prohibitive to add these exterior finishes on this size of building. Dennis also informed the Board that there are few developers constructing this type of product in the Dallas area because it is not profitable. AEDC incentives are needed in order to obtain competitive lease rates and create an aesthetically pleasing building. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved a $330,000 incentive grant to be distributed on the following schedule: • $110,000 payable upon the receipt of a certificate of occupancy • $110,000 payable on the first anniversary of the certificate of occupancy • $110,000 payable on the second anniversary of the certificate of occupancy The incentives are based upon the company maintaining $3.5 million in taxable value on the building for a period of 5 years and 0 employees. The Board must approve the final landscaping, lighting and architectural designs for the project. The Board authorized the President of the AEDC Board to negotiate the contract. Fred Gans, Cornerstone Development, purchased the southern portion of the AEDC-owned Ridgemont tract at the southeast comer of US 75 and Ridgemont Drive and is currently under construction on a two-story, 50,000 SF office building. The building is nearly 100% leased. The AEDC Board previously approved the sale of the northern portion of the Ridgemont tract consisting of 4.552 acres net of the Right of Way (5.288 acres gross) for the construction of another two-story office building with approximately 60,000 SF. A Purchase and Sale Contract has been developed. Allen Economic Development Corporation Regular Meeting, October 19, 2005 Page 3 Gans appeared before the Board to request that the Purchase and Sale Contract be changed to require that Cornerstone Development start construction 180 days from the closing of the property, as opposed to 180 days from the effective date of the contract. On a motion by Ken Falk, seconded by Tim Wood, the Board approved the Purchase and Sale Contract for the sale of the northern portion of the Ridgemont tract consisting of 4.552 acres net of the Right of Way (5.288 acres gross) with the change requested by Gans. The Board authorized the President of the AEDC Board to negotiate the contract. Approve the Landscaping Lighting and Architectural Plans for an Office Building to be Located at the Southeast Comer of Ridtiemont Drive and US 75. The AEDC Board previously approved the sale of the northern portion of the Ridgemont tract consisting of 4.552 acres net of the Right of Way (5.288 acres gross) at the southeast comer of US 75 and Rrdgemont Drive for the construction of an approximately 50,000 square foot, two-story office building. A Purchase and Sale Contract for the property has been developed. As a requirement of the contract, Gans must receive final approval from the AEDC Board on the landscaping, lighting and architectural plans for the property. Fred Gans, Cornerstone Development, appeared before the Board to present the landscaping, lighting and architectural plans for the property. On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved the landscaping, lighting and architectural plans for the building as presented. Consider and take Action for the We of Property Owned by the AEDC at the Southeast Comer of Century Parkway and Butler Drive and the Approval of Incentives Supporting Office/Warehouse Development. The AEDC owns 4.302 acres at the southeast comer of Century Parkway and Butler Drive that was repurchased from JSC Realty in March 2003. Dale Caraway and Carl Johnson appeared before the Board to request the AEDC's consideration to provide the 4.302 acre site at no land cost to facilitate the development of a 70,000 square foot officeltech/warehouse building on a speculative basis with space for mid-sized users from 10,000- 35,000 square feet. Dale informed the Board that the development group typically holds properties they develop for the long-term and keeps them well maintained. They are still considering the possibility of reconfiguring the detention pond and presented possible development proposals: • Construct a 70,000 square foot building on 4.302 aces with the existing detention pond configuration. • Engineering permitting, reconfigure the detention pond in its present location to allow for the construction of both the initial 70,000 square foot building and a second building of up to 55,000 square feet. Allen Economic Development Corporation Regular Meeting, October 19, 2005 Page 4 • Engineering permitting, reconfigure the site by locating the detention pond to the southeast corner of Butler and Century. They would then construct the two buildings as outlined in the proposal above. Carl informed the Board that they envision a multi -phase development. In order to allow for tenants to expand and remain within the business park, they requested that the Board offer them a right of first refusal on a portion of the AEDC-owned 18 acre tract located on the west side of Century Parkway for the construction of future buildings. AEDC incentives we needed because constructing this size of building and creating smaller partitions is cost prohibitive. Free AEDC land would allow them to offer competitive rents for space in the building. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved an offer of 4.302 acres of AEDC-owned land at the southeast comer of Century Parkway and Butler Drive for sale to the development group for $3.00 per square foot, contingent upon Board approval of the landscaping, lighting and architectural plans for the building. Approval of AEDC Financial Reports, Dan Bowman presented the AEDC financial reports. On a motion by Tim Wood, seconded by Maxine Sweet, the Board approved the AEDC financial reports as presented. Discuss Administrative and Marketine Activities of the AEDC Jennifer Grimm invited the Board to attend the "topping off' ceremony for BSM Financial Center on October 26. The grand re -opening for Chase Oaks Golf Club will be November 12 and the City of Allen Christmas Tree Lighting will occur on December 2. Charisse informed the Board that, according to Texas State law, Board members will have to attend an Open Meetings Act training session during the 2006 calendar year. The Board agreed that Dan should be the Public Information Officer for the AEDC. Blue Star is considering changing thew site plan for StarCreek to have the restaurants surrounding the central fountain. The changes will be brought forward to the Board at a future date for approval. Schedulmg of Next AEDC Board of Directors Meeting, The next Regular Board meeting was scheduled for November 166 at 6:00 p.m. Adjourn. On a motion by Maxine Sweet, seconded by Ken Fulk, the meeting was officially adjourned at 8:05 p.m. Allen Economic Development Corporation Regular Meeting, October 19, 2005 Page 5 These minutes approved this 16' day of November, 2005. Kurt Kizer, President K& Fulk, Secretary