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HomeMy WebLinkAboutMin - Economic Development Corporation - 2005 - 12/21 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS REGULAR MEETING December 21, 2005 Board Staff Guests Kurt Kizer Jennifer Grimm Blair Oden Tim Wood Dan Bowman Alex Bemett Ken Fulk Bruce Heller Maxine Sweet Bill Kaupas Carl Clemencich Robby Hefton Doug Carignan Charisse Bodisch— Via Phone from 6:07 p.m. to 7:03 p.m. 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 Kurt Kizer at 6:06 p.m. on Wednesday, December 21, 2005 at the AEDC Office. The following items were discussed: Approve Minutes of the November 16. 2005 Regular Meeting and the December 8, 2005 Special Called Meeting of the AEDC Board of Directors The minutes of the November 16, 2005 Regular Meeting and the December 8, 2005 Special Called Meeting of the AEDC Board of Directors were approved as submitted on a motion by Carl Clemencich, seconded by Ken Fulk. Convene into Closed Executive Session. The Board convened into closed executive session at 6:17 p.m. to deliberate the sale of property owned by the AEDC in Millennium Corporate Center and incentives to support the development of an office building and to deliberate commercial and financial information and economic incentives for the recruitment of Project Life to Twin Creeks Business Park and also to deliberate commercial and financial information and economic incentives for the retention and expansion of Project Wi-Fi in Allen. Reconvene into Regular Session. The Board reconvened into regular session at 9:24 p.m. Allen Economic Development Corporation Regular Meeting, December 21, 2005 Page 2 Consider and take Action for the Aooroval of a Purchase & Sale Agreement. Restriction Agreement Incentive Agreement and Lease Agreement Supporting the Development of an Office Building on Property Owned by the AEDC in Millennium Corporate Center. The AEDC Board previously approved an incentive package for Duke Realty to support the development of a six -story, 120,000 - 140,000 square foot Class A office building in Millennium Corporate Center, located at the northwest comer of Bethany Drive and US 75. Based on the incentive package negotiated, contracts have been developed including the Purchase & Sale Agreement, Restriction Agreement, Incentive Agreement, Lease Agreement and Tax Abatement Agreement. Blair Oden, Duke Realty, appeared before the Board to request approval of these contracts pending several changes. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved the Purchase and Sale Agreement and Incentive Agreement as presented. The Board approved the Lease Agreement with the following changes: • In the event the building or a portion of the building is destroyed during the term of the lease agreement, the AEDC lease payments stop while the property is under repair The payments will start again upon completion of the repairs and continue until the AEDC has paid 18 months of rent or 50% of the building is leased. The AEDC Board has the option to terminate the agreement if Duke has not commenced the repairs within 180 days. The Board also approved the Restriction Agreement with the following changes: • The 3 -year Right of First Refusal (ROFR) period will be renewed upon the contract execution date each time Duke purchases an additional portion of the remaining AEDC ROFR tract. • If there is a bona fide offer for land, Duke has 30 days to respond and exercise their ROFR. The AEDC will also forward all bona fide prospect leads to Duke. • If a developer wants to construct a build -to -suit for an end user who will lease and/or occupy the majority of the building, or if an end user would like to have a building constructed and does not want to use Duke as the developer, Duke will forfeit the ROFR. The Board authorized the president of the AEDC Board to negotiate remaining revisions and negotiate and execute the contracts. Consider and take Action for a Recommendation to the Taxing Entities for the Approval of a Tax Abatement Agreement Supporting the Development of an Office Building on Property Owned by the AEDC in Millennium Corporate Center. Blau Oden, Duke Realty, appeared before the Board to request approval of a Tax Abatement Agreement to support the development of a six -story, 120,000 -140,000 SF Class A office building in Millennium Corporate Center, located at the northwest comer of Bethany Drive and US 75. On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved a recommendation to the City of Allen, Collin County and Collin County Community College for consideration of a 50% tax abatement for 10 years on the improvements (including the building and the parking garage). The Board authorized the president of the AEDC Board to negotiate and execute the contract. Allen Economic Development Corporation Regular Meeting, December 21, 2005 Page 3 Consider and take Action for the Approval of Incentives Suoportinu the Recruitment of Project Life to Twin Creeks Business Park in Allen Project Life, a provider of physical medicine and rehabilitation services, is interested in having an approximately 35,000 square foot Physical Medicine and Rehabilitation Hospital constructed in Twin Creeks Business Park. The building would be located to the south of Twin Creeks Medical Center. Bruce Heller, JaRyCo, would construct the building with a long-term lease to the company. Bill Kaupas, Project Life, appeared before the Board to request the approval of incentives to support the construction of the hospital. Kaupas informed the Board that Project Life provides a specialized health service that does not currently exist in the North Dallas area. The company provides services that are complimentary to Presbyterian Hospital and would work with the hospital to facilitate the transfer of patients between the two facilities. This type of Rehabilitation Hospital tends to draw, patients from a wide radius, making it unlikely that the Allen -Plano -McKinney area would have more than one such facility. Bruce Heller informed the Board that the building to be constructed would be two stories and adjacent to additional land for possible future expansion of the building to 50,000 square feet. The building design would be similar to existing medical office buildings in the area. On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board approved a recommendation to the City of Allen only for consideration of a 50% tax abatement for 10 years on the building. The Board discussed a variety of incentive amounts and payment options. The Board authorized the president of the AEDC Board to negotiate the contract. Consider and take Action for the Approval of Incentives Supporting the Retention and Expansion of Proicet Wi-Fi in Allen. Project Wi-Fr, a fabless semiconductor company currently located in the ICBS building at 601 Century Parkway, has outgrown its space and is considering locating to larger space in Allen. The AFDC previously provided an incentive package to the company to retain them in Allen and to assist with the short-term space need in the ICBS building. A total of $50,000 was provided to the company with $30,000 paid upon the issuance of a certificate of occupancy on March 22, 2005 and $20,000 to be paid upon the fust anniversary date of the issuance of a certificate of occupancy on March 22, 2006. The incentive is based on Project Wi-Fi leasing space in the ICBS building for 18 months and maintaining 10 employees and $550,000 on the local tax rolls beginning January 1, 2006. Robby Heflon, Project Wi-Fi, appeared before the Board to request incentives to assist with the relocation of Project Wi-Fi into new space in Allen and the transfer of incentives from the existing incentive agreement. The company is considering a 28 -month sublease on approximately 35,000 square feet in Allen, which would allow them to grow to 150 employees. After the expiration of this lease, the company would consider Allen as a location for a long-term lease or the potential construction of a build -to -suit facility. In order to be financially prudent for the shareholders, the company has also researched the possibility of locating into space in Plano. Allen Economic Development Corporation Regular Meeting, December 21, 2005 Page 4 On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved the transfer of the remaining $20,000 incentive grant from the original incentive agreement, which is due on March 22, 2006. The requirements from the original incentive agreement will remain in effect. The Board also approved a $30,000 incentive grant to be paid upon the receipt of a certificate of occupancy in the new space, contingent upon on the company signing a 28 -month lease on approximately 35,000 square feet in Allen. The Board also approved a $70,000 incentive grant to be paid if the company signs a 5 -year lease on 35,000 or more square feet of space in Allen any time during the 28 -month period. The Board authorized the president of the AEDC Board to negotiate the contract. Approval of AEDC Financial Reports Dan Bowman presented the AEDC financial reports. On a motion by Tim Wood, seconded by Ken Fulk, the Board approved the AEDC financial reports as presented. Discuss Administrative and Marketing Activities of the AEDC Jennifer Grimm updated the Board on the marketing activities of the AEDC. The AEDC Holiday Party was a complete success and had good attendance. Plans are being made for members of the AEDC Board, AEDC staff, City of Allen Staff and members of the Allen City Council to attend the International Council of Shopping Center (ICSC) convention in Cas Vegas in May 2006. Scheduling of Next AEDC Board of Directors Meeting The next Regular Board meeting was scheduled for January 18, 2006 at 6:00 p.m. Adjoum. On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at 9:45 p.m. These minutes approved this 18' day of January, 2006. 61LY11 Kurt Kizer, President Fulk, Secretary