HomeMy WebLinkAboutMin - Economic Development Corporation - 2006 - 09/20 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
September 20, 2006
Board
Kurt Kizer
Tim Wood
Carl Clemencich
Mark Pacheco
Maxine Sweet
staff
Robert Winningham
Jennifer Grimm
Dan Bowman
Call to Order and Announce a Ouomm Present
Guests
Joe Vaney
Steve Skalski
Charles Chalifoux
Al Horstmann
Kevin Samaularia
Susan Singer
Paul Van Meter
Julias Farkas
Jim Colson
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,
September 20, 2006 at the AEDC Office. The following items were discussed:
1 Arinve Minutes of the A east 16 2006 Regular Meeting of the AEDC Board of Directors
On a motion by Carl Clemencich, amended by Mark Pacheco, the minutes of the August 16, 2006
Regular Meeting of the AEDC Board of Directors were approved with the following revisions:
• Under the item relating to the reconsideration of incentives for Twin Creeks Medical
Center Two, L P., wording in the minutes was added stating that Mark Pacheco
abstained from discussion and voting on this item.
2. Convene into Closed Executive Session
The Board convened into closed executive session at 6:06 p.m. to deliberate commercial and Financial
information and economic incentives for the following:
• Recruitment of Project Cork
• Recruitment of Project Eagle
• Reconsideration of Incentives for the Retention and Expansion of Project Wi-Fi
Reconvene in Coca Session
The Board reconvened into regular session at 8.51 p in
Allen Economic Development Corporation
Regular Meeting, September 20, 2006
Page 2
_3_._ Consider and Take Action on the Recruitment of Proiect Cork
Project Cork representatives appeared before the Board to request incentives to support the relocation
of Project Cork, a sports and game trading card manufacturing company, into approximately 120,000 -
SF at 300 E. Bethany A primary reason for the company's interest in leasing this space is that it is
located adjacent to ColorDynamics, a commercial printer that could be capable of handling the
company's required printing volume. RCIJColorDymmnics has negotiated with the company to
provide these services if the company decides to locate to the building.
In order to meet the company's requirements, ColorDynamics would need to expand their printing
capacity by adding additional equipment and employees. LFP Real Estate, the owner of the building,
would also have to make significant improvements to the facility to meet the requirements of Project
Cork.
ColorDym mics appeared before the Board to request incentives to support their expansion to meet the
needs of Project Cork. LFP Real Estate appeared before the Board to request incentives to help cover
the cost of improvements to the facility at 300 E. Bethany that are required to meet the needs of
Project Cork.
The Board took into consideration that the space at 300 E. Bethany has been vacant since 2003, the
improvements to the facility would increase the taxable value of the facility, the occupancy of the
facility would increase the taxable value of the facility, the expansion of ColorDynamics would create
additional jobs and provide additional taxable value, and the relocation of Project Cork would create
additionaljobs and taxable value.
On a motion by Maxine Sweet, seconded by Mark Pacheco, the Board approved an incentive grant for
Project Cork in the amount of $650,000, to be paid on the following schedule:
• $250,000 paid upon the company's receipt of a certificate of occupancy at 300 E.
Bethany Drive
• $200,000 paid upon the first anniversary of the company's receipt of a certificate of
occupancy
• $200,000 paid upon the second anniversary of the company's receipt of a certificate of
occupancy
The incentive grant for Project Cork is contingent upon the following:
• The company must sign a 7 -year lease (with a 7 -year option) on approximately
120,000 -square feet of space at 300 E. Bethany Drive.
• The company must have 100 full time employment positions at the facility within 120
days of receiving a certificate of occupancy and maintain 100 employment positions
for the full tern of the initial lease.
• The company must have $7 million in taxable business personal property as of
January la of the year following the six month anniversary of the receipt of a
certificate of occupancy at 300 E. Bethany Drive, and maintain $7 million in taxable
business personal property for the full term of the initial lease.
Allen Economic Development Corporation
Regular Meeting, September 20, 2006
Page 3
The Board approved an incentive grant in the amount of $200,000 to be paid to ColorDynamics to
support their expansion, contingent upon Project Cork signing a 7 -year lease on approximately
120,000 -square feet of space at 300 E. Bethany Drive.
The Board approved an incentive grant in the amount of $75,000 to be paid to LFP Real Estate to
support improvements to the facility located at 300 E. Bethany Drive, contingent upon Project Cork
signing a 7 -year lease on approximately 120,000 -square feet of space at 300 E. Bethany Drive.
The Board also authorized the President of the AEDC Board to negotiate and execute the contract.
4. Consider and Take Action on the Recruitment of Protect Eaele
Project Eagle representatives appeared before the AEDC Board to request the consideration of
incentives to support the relocation of Protea Eagle, an integrated hardware/software applications
company, to Allen and the future expansion of the company. The company is based outside the United
States and is looking to open a manufacturing facility within the United States in order to better service
their client base and manage costs.
The company is considering signing a 3 -year lease on approximately 25,000 -square feet of space at
505 Century Parkway and is willing to commit to the creation of a substantial number ofjobs within
the first two (2) years if they proceed with the relocation. Assuming the company's growth continues
as the company expects, they anticipate the possibility of constructing a 50,000-60,000 square foot
facility in Allen for occupancy once their lease at 505 Century Parkway expires.
The company would be willing to designate Allen as the "point of sale" for their product (for sales tax
purposes) if they decide to locate to Allen.
No action was taken on this item.
5 Consider and Take Action on the Reconsideration of Incentives for the Retention and Expansion
of Project Wi-Fi
Company representatives did not appear before the Board.
No action was taken on this item.
6 Consider Approval of Revisions to the Covenants and Restrictions for Allen Central Park
Pete Smith, AEDC attorney, is still in the process of drafting the revisions to the Covenants and
Restrictions for Allen Central Park.
No action was taken on this item. Mark Pacheco abstained from discussion on this item.
Allen Economic Development Coiporanon
Regular Meeting, September 20, 2006
Page 4
7. Approval of AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. The Board discussed the Dallas Area Rapid
Transit resolution recently passed by the Allen City Council. On a motion by Tim Wood, seconded by
Maxine Sweet, the Board approved the AEDC financial reports as presented.
8. Discuss Administrative and Marketing Activities of the AFDC.
Jennifer Grimm updated the Board on marketing activities and invited the Board to attend Allies Day
on October 2"a and the Allen Chamber of Commerce event welcoming Robert Winningham as the new
AEDC Executive Director on October 0. General Growth is trying to determine what type of office
product the AEDC would recommend for their Allen site.
9. Executive Director's Report
Robert Winningham gave the Executive Director's Report. The following items were mentioned:
• The NTCAR event on September 10 was good exposure for Allen.
• Robert is working quickly to meet important Allen community and business
representatives.
• Robert has been working on projects including the construction of Noble Drive, the
Wilcox development, the Trammell Crow development, and the Bradford
development.
• Robert will be at the Annual Texas Economic Development Council (TEDC) Meeting
next week. He is also in the process of moving out of his house in Greenville.
Maxine Sweet mentioned the importance of the AFDC working closely with the Allen Chamber of
Commerce to promote economic development activity in Allen.
10 Scheduling of Next AEDC Board of Directors Meeting.
The next Regular Board meeting was scheduled for October 18, 2006 at 6:00 p.m.
I1 Adioum.
On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at 9:35
p.m.
71 ase minutes approved this 18" day of October, 2006.
Kurt IGzeS P idem Carl Clemencich, Secretary