HomeMy WebLinkAboutMin - Economic Development Corporation - 2006 - 02/15 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
Board
Kurt Kizer
Tim Wood
Ken Fulk
Maxine Sweet
Carl Clemencich
REGULAR MEETING
February 15, 2006
Staff
Charisse Bodisch
Jennifer Grimm
Dan Bowman
Call to Order and Announced Quorum Present
Guests
Daniel Spika
Ian Hale
Bob Faisal
Mike Villalobos
Eric Benavides
Robert Boss
Matt Bmmlett
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 6:02 p.m. on Wednesday,
February 15, 2006 at the AEDC Office. The following items were discussed:
Approve Minutes of the January 18, 2006 Regular Meeting of the AEDC Board of Directors
The minutes of the January 18, 2006 Regular Meeting of the AEDC Board of Directors were approved
as submitted on a motion by Ken Folk, seconded by Maxine Sweet.
Convene into Closed Executive Session.
The Board convened into closed executive session at 6:05 p.m. to deliberate commercial and financial
information and economic incentives for the following:
• The recruitment of Project Simon to Allen.
• Development of McDermott Business Pat Phase Il in Allen's Central Business District.
• Development of McDermott Square in Allen's Central Business District.
• The Retention of HIT Entertainment in Allen
Reconvene into Regular Session
The Board reconvened into regular session at 8:18 p.m.
Consider Approval of Incentives Supporting the Recruitment of Project Simon to Allen.
Project Simon is an international supplier of drilling equipment with a facility in Garland. The
company is expanding and is considering taking approximately 80,000 square feet of space at 815
Enterprise Boulevard in Allen. They would continue to maintain their operations in Garland.
Allen Economic Development Corporation
Regular Meeting, February 15, 2006
Page 2
Bob Fassl with Project Simon appeared before the Board to request incentives from the AEDC to
offset relocation costs. Through this expansion they plan to double the size of the company. Fassl
projected that approximately half of the existing employees involved in distribution operations at the
Garland facility would transfer to the Allen facility, with the remaining employees being hired in the
Allen area.
The company plans to make a location decision before the end of February and have the facility
operational in May 2006. The company would sign an initial 5 -year lease with up to two 5 -year
options. The Board took into consideration that 815 Enterprise Boulevard has been unoccupied since
1999.
On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved an $80,000 incentive
grant to offset moving costs (not including payments to internal company employees) incurred by
Project Simon for which qualified receipts are provided. The incentive is payable upon the issuance of
a certificate of occupancy and is contingent upon the company signing a 5 -year lease on approximately
80,000 square feet of space in 815 Enterprise Boulevard, maintaining a minimum taxable value of
$1,000,000 in business personal property and 30 fulltime employees for the 5 -year term of the lease.
The Board authorized the president of the AEDC Board to negotiate and execute the contract.
Consider Approval of Development Scenarios Supporting the Construction of an Office Building in
McDermott Business Park Phase 11 in Allen's Central Business District
Mike V illalobos, PRO Capital, appeared before the Board to request incentives from the AEDC to
offset infrastructure costs associated with the development of Phase 11 of McDermott Business Park.
The company has to solve unanticipated drainage issues associated with the site, including grading the
property to redirect the flow of water and prevent flooding of a nearby residential neighborhood. These
improvements have increased their costs.
Phase B will consist of a 5,400 square foot building with a taxable value of approximately $485,000,
constructed in the same architectural style as the first building in the park. PRG already has tenants
interested in leasing space in the second building.
On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved up to $50,000 in
infrastructure assistance to be paid in a single lump sum upon the issuance of the first certificate of
occupancy for the building and contingent upon the submittal of qualifying infrastructure receipts for
expenses incurred by PRG Capital. The Board authorized the president of the AEDC Board to
negotiate and execute the contract.
Consider Approval of Development Spenarms Supporting the Co structio r of Office Retail and
Restaurant Space in McDermott Square in Allen's Central Business District.
A developer is planning to construct three 2 -story buildings containing a combination of office, retail
and restaurant space on appm mmitely 4.2 acres at the southwest comer of McDermott Drive and
Cedar Drive in Allen's Central Business District. Plans include approximately 42,320 square feet of
office space, 46,343 square feet of retail space and 13,916 square feet of restaurant space.
Allen Economic Development Corporation
Regular Meeting, February 15, 2006
Page 3
Eric Benavides, the developer, appeared before the Board to request infrastructure assistance from the
AEDC to offset development costs. The mixed-use commercial development will target upscale,
locally -operated boutiques and offices and have a pedestrian friendly "downtown" feel. The City
Planning Department has reviewed the developer's plans and is in favor of the project.
On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board approved providing up to
$200,000 in assistance to offset infrastructure costs incurred by the company for which receipts are
provided, to be paid on the following schedule:
• $100,000 paid upon receipt of a certificate of completion on the final building
• $100,000 paid upon the first anniversary of the certificate of completion on the final
building
Payment of incentives is contingent upon the company maintaining a taxable value of $9,000,000 on
the buildings and zero employees for the first 2 years of full valuation. The Board authorized the
president of the AEDC Board to negotiate and execute the contract.
Reg ousrder Incentives for the Retention of HIT Entertainment in Allen
HIT Entertainment, an audio-visual entertainment company currently located in Allen, was recently
acquired by an investment company that has outsourced some of its operations. The company has
released approximately 70 employees and is considering selling the Allen facility. They currently have
approximately 65 employees remaining.
Robert Boss, HIT Entertainment, appeared before the Board to update the AEDC Board on their plans
regarding the Allen facility. With the potential sale of the building, HIT is considering its options
including subleasing space in the existing building or leasing space elsewhere in Allen. The company
desires to stay in Allen, since most of their employees live in the area.
The Board recommended that Charisse get an opinion from the AEDC attorney regarding calling the
company into default.
Approval of a Corporate Resolution Supporting the Sale of AFDC -Owned Land in Millennium
Comorate Center.
The AEDC Board provided an incentive package to Duke Realty to support the development of a six -
story, 120,000-140,000 square foot Class A office building in Millennium Corporate Center. To
facilitate the closing on the property in Millennium Corporate Center with Duke Realty and in
accordance with contractual requirements, the title company requires a Corporate Resolution
authorizing Kurt Kizer, AEDC President, to execute the sale on behalf of the Allen Economic
Development Corporation.
On a motion by Maxine Sweet, seconded by Ken Folk, the Board approved a Corporate Resolution
authorizing Kurt Kizer, AEDC President, to execute the sale of 7 447 acres of AEDC-owned land in
Millennium Corporate Center to Duke Realty on behalf of the Allen Economic Development
Corporation.
Allen Economic Development Corporation
Regular Meeting, February 15, 2006
Page 4
Approval of AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. On a motion by Ken Fulk, seconded by Tim
Wood, 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. Maxine Sweet updated
the Board on the possibility of Experian relocating a portion of their Allen operations to McKinney.
The company is aware that if Allen is no longer the location of their primary data center, AEDC
incentives would be discontinued. They don't anticipate anything happening for another year or more.
Charisse distributed an economic development study done by the Perryman Group and updated the
Board on the status of various AEDC projects. The AEDC is facilitating a meeting between City of
Allen, AEDC and Blue Star Development representatives on February 21" to discuss the StarCmek
development. The AEDC is scheduling a meeting on March 13" or 10 with City of Allen, Allen
Chamber of Commerce, AEDC and Telecom Corridor representatives to discuss Allen's participation
in the Telecom Corridor. The AEDC will host a series of meetings on March 21" where General
Growth Properties will update City Council, City Staff, AEDC Board members and AEDC staff on
their project. The Allen City Council and the AEDC will hold a joint meeting on March 28' to discuss
strategic objectives as outlined in the City of Allen Strategic Plan. The tax abatement for Duke Realty
will be considered for approval by both the Collin County Commissioners Court and the Collin County
Community College District Board of Trustees on February 281"
Scheduling of Next AEDC Board of Directors Meeting
The next Regular Board meeting was scheduled for March 15, 2006 at 6:00 p.m.
Adjourn
On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at
9.20 p.m.
These minutes approved this 15' day of March, 2006.
i
Kurt Kizer, Pidsident Keh Fulk, Secretary