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HomeMy WebLinkAboutMin - Economic Development Corporation - 2006 - 06/08 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING June 8, 2006 Board Staff Guests Kurt Kizer Chansse Bodisch Matt Elliott Tim Wood Jennifer Gnmm Tim Powell Ken Fulk Dan Bowman Calvin Ray Maxine Sweet Rob Meche Carl Clemencich John Wright Ron Roberto Stuart Tison 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 6.05 p.m. on Wednesday, June 8, 2006 at the AEDC Office. The following items were discussed: Approve Minutes of the May 17 2006 Regular Meeting The minutes of the May 17, 2006 Regular Meering 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 6:08 p.m to deliberate commercial and financial information and economic incentives for the following' • Expansion of Celerity Inc at 915 Enterprise Boulevard. • Expansion of Protect Bubbles in Allen Station Business Park • Expansion of Mustang Technology in Allen. Reconvene into Reeular Session The Board reconvened into regular session at 8 14 p.m. Consider Approval of Incentives Supporting the Expansion of Celerity Inc at 915 Enterprise Boulevard. Stuart Tison, Celerity, Inc., appeared before the Board to request incentives to offset relocation and building improvement costs involved with the company's expansion at 915 Enterprise Boulevard. The company is in the process of consolidating various operations and is considering locating divisions into the Allen facility Allen Economic Development Corporation Regular Meeting, June 8, 2006 Page 2 The company plans to invest in capital improvements, locate additional inventory and hire approximately 179 new employees at the Allen facility On a motion by Carl Clemencich, seconded by Ken Fulk, the Board approved $250,000 in incentives to be paid according to the following schedule: • $125,000 paid upon the receipt of paid invoices (totaling $3 million) for finishout expenses and equipment related to their expansion • $125,000 paid upon the verification of 300 total employees at the Allen facility. The company must maintain operations in the City of Allen for a period of 5 years from the expiration date of the company's current lease at 915 Enterprise Boulevard (until June 1, 2012), maintain a taxable personal property value of $5,000,000 greater than the company's taxable personal property value for tax year 2006 (as determined by the Collin County Appraisal District) and maintain 300 employees for 1 year from the date of the second incentive request If the company falls below 300 employees prior to 1 year from the date of the second incentive request, the company is required to repay a prorated amount of the incentive grant, The Board authorized the President of the AEDC Board to negotiate and execute the contract. Consider Approval of Incentives Supporting the Expansion of Protect Bubbles in Allen Station Business Park. The AEDC Board previously approved incentives for Project Bubbles to support their Phase 11 development of an approximately 53,000 square foot facility in Allen Station Business Park. The company is considering a site in Allen and a site in McKinney for the construction of the facility Company representatives appeared before the Board to request reconsideration of incentives for their Phase B expansion in Allen Station Business Park. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved the following: • A $290,000 incentive grant to be paid to the company upon receipt of a final certificate of occupancy on an approximately 53,000 square foot building in Allen Station Business Park. • Funding the construction of the portion of Noble Drive that will be adjacent to the facility • Funding the construction of the portion of Allen Station Parkway that will be adjacent to the facility The incentives are contingent upon the following • Company must have a minimum of 75 employees at the facility as of the first anniversary of the receipt of a final certificate of occupancy • Company must maintain 75 employees and a combined taxable value on the budding and business personal property of $7.5 million for a period of 5 years. • Company must designate the City of Allen as the point of sale for taxable sales made at the Allen facility. • The AEDC Board must approve the final architectural, landscaping, lighting and site plans for the facility Allen Economic Development Corporation Regular Meeting, June 8, 2006 Page 3 The Board authorized the President of the AEDC Board to negotiate and execute the contract and in the same motion, the Board also approved a recommendation to the City of Allen, Collin County and Collin County Community College District for consideration of a 40% tax abatement for 10 years on the building and personal property, contingent upon the company maintaining a combined taxable value on the building and business personal property of $7.5 million for the full term of the tax abatement. Consider Approval of Incentives Supporting the Expansion of Mustang Technology in Allen John Wright, Mustang Technology, appeared before the Board to request incentives to assist with the finish -out of additional space in the Bethany Tech Center for the company's expansion. The company plans to occupy the building next to their current facility, leasing approximately 16,500 square feet of additional space. The company is in negotiations to sign a 5 -year lease on the space in Allen with a cancellation option half -way through the lease. This will provide the company Flexibility as they plan to expand further and occupy additional space within the next 5 years. The company is also considering leasing space in Plano. They are requesting funds to help offset finishout expenses at the Allen facility. On a motion by Maxine Sweet, seconded by Ken Falk, the Board approved $80,000 in incentives to be paid according to the following schedule: • $40,000 paid based on the company submitting $100,000 in paid invoices for finishout expenses and equipment related to their expansion and verification of 45 total employees. • $40,000 paid upon the verification of 60 total employees at the Allen facility The company must maintain 60 employees for a year after the second incentive payment is made The company must maintain operations in Allen until January 1, 2010 and maintain 60 employees for one year from the date of the second incentive request If the company falls below 60 employees prior to one year from the date of the second incentive request, the company is required to repay a prorated amount of the incentive grant The Board authorized the President of the AEDC Board to negotiate and execute the contract Consider Approval for a Recommendation to the Allen City Council for Distribution of Hotel/Motel Tax Revenues that will be Available During Fiscal Year 2006-2007 On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved a recommendation for the distribution of Hotel/Motel tax revenues totaling $46,000 for fiscal year 2006-07 to community organizations. The recommended distribution is as follows • Allen Chamber of Commerce — $25,430 —To be used for a tourism promotion campaign, tounsm-related advertising and regional organization memberships. • Allen Civic Ballet — $2,820 —To be used for expenses associated with the Allen Dance Festival. • Allen Heritage Guild — $1,750 — To be used for the purchase of preservation equipment to be housed at the Allen Heritage Center. Allen Economic Development Corporation Regular Meeting, June 8, 2006 Page 4 • Allen Philharmonic Symphony — $14,000 — To be used for expenses associated with radio advertising for the 2006-07 season, the Allen Harvest Festival and the Annual Tea & Fashion Show • Friends of the Allen Public Library — $2,000 — To be used for advertising in publications outside the DEW Metroplex for upcoming programs. The Allen City Council will consider the recommendation as part of the city budget process. Consider Approval of the Allen Economic Development Corporation's Budget for Fiscal Year 2006- 2007 and Admstments for Fiscal Year 2005-2006 Charisse Bodisch presented the AFDC 2006-2007 FY budget and recommendations for adjustments to the 2005-2006 FY budget Of special note were adjustments to the following accounts: • Administrative Transfer to the City of Allen — increasing to $62,500 to cover the increased cost of city services and to cover additional resources required by the City for retail recruitment. • Travel — increasing for additional International Council of Shopping Centers (ICSC) expenses, corporate visits and recruitment trips. • Allen Central Park — funds are budgeted for the cost of changing the signage in the park to reflect the new name and the cost of separating out the water meters in the park. On a motion by Ken Fulk, seconded by Maxine Sweet, the Board approved the Allen Economic Development Corporation's budget for Fiscal Year 2006-2007 and adjustments to the budget for Fiscal Year 2005-2006 as presented. Approval of AFDC Financial Reports Dan Bowman presented the AEDC financial reports. On a motion by Tim Wood, seconded by Ken Fulk, the Board approved the AFDC financial reports as presented. Discuss Administrative and Marketing Activities of the AEDC Jennifer Grimm updated the Board on marketing activities and distributed copies of the Duke Realty article that appeared in the Dallas Business Journal on June 2. She presented the AFDC bags that were distributed on the City of Allen Family First Day Maxine and Carl will serve as judges for the Millennium Business Awards. Chansse updated the Board on the status of vinous projects. Allen representatives met with U S Postal Service representatives. The USPS does not have plans to undertake any new capital construction projects, including a new post office in Allen AEDC and City representatives will be meeting with Trademark on June 9 Kurt Kizer presented a small gift and a card to Ken Fulk in recognition of his service on the AEDC Board. Allen Economic Development Corporation Regular Meeting, June S, 2006 Page 5 Scheduling of Next AEDC Board of Directors Meeting The next Regular Board meeting was scheduled for July 19, 2006 at 6:00 p.m. Adioum On a motion by Ken Falk, seconded by Maxine Sweet, the meeting was officially adjourned at 9:02 p.m. These minutes approved this 190 day of July, 2006. Kurt Kizer. President Secretary