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HomeMy WebLinkAboutMin - Economic Development Corporation - 2006 - 11/15 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS REGULAR MEETING November 15, 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 Quorum Present Guests Pete Smith Kathleen Vaughn Jon Staples Scott Freeman Efrem Colmenem Julian Ross Thomas Acevedo George Mitchell 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 6:07 p.m. on Wednesday, November 15, 2006 at the AEDC Office. Consent Agenda On a motion by Mark Pacheco, seconded by Tim Wood, the Board voted five (5) for and none (0) opposed to remove Agenda Items No. 2, No. 3, No. 7, and No. 9 from the consent agenda and adopt the consent agenda as follows: 1. Approval of Minutes of the October 18. 2006 Regular Meeting 4 Approval of Economic Development Agreement with Graphic Convertins. inc 5 Approval of Economic Development Agreement _witliLFP Real Estate. L.P. 6. Approval of Economic Development Agreement with RCL Enteipdses, Inc. S. Approval of Release Agreement with Ente rigs Inc The motion earned. 2. Approval of AEDC Financial Reports Dan Bowman presented the AFDC Financial Reports. On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board voted five (5) for and none (0) opposed to approve the Financial Reports as presented. Allen Economic Development Co,paw ion Regular Meeting, November 15, 1006 Page 1 Approval of Revisions to the Covenants and Restrictions for Allen Central Park On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board voted four (4) for, one (1) abstained with Mark Pacheco abstaining, and none (0) opposed to approve revisions to the Covenants and Restrictions for Allen Central Park. Mark Pacheco abstained from discussion on this item. 7 Approval of Amended and R stated Economic Development Agreement with Bradford Development Compal On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board voted four (4) for, one (1) abstained with Mark Pacheco abstaining, and none (0) opposed to approve the Amended and Restated Economic Development Agreement with Bradford Development Company. Mark Pacheco abstained from discussion on this item. 9 Anoroval of Economic Developmentgreement with Celerity Inc Dan Bowman updated the Board on the following changes to the agreement that were requested by Celerity, Inc.. • Change the definition of"Employment Positions" to include the full-time workers Erred by Celerity, Inc. through the Spherion Staffing Agency. • Change Section 5.2 so that if the company defaults on the agreement, the repayment of the grant is prorated based on the number of years that the company has maintained compliance with the agreement. The general consensus of the Board was not to change Section 5.2, and to have the employment requirement in the contract include only full-time, non -temporary employment positions. On a motion by Maxine Sweet, seconded by Tim Wood, the Board voted five (5) for and none (0) opposed to approve the Economic Development Agreement with Celerity, Inc. and authorize the President of the Board to negotiate and execute the contract. lAeglar Agenda 10. Citizen's Comments No citizen comments were made. 11, Convene into Closed Executive Session. The Board convened into closed executive session at 6:26 p.m. to deliberate commercial and financial information and economic incentives for the following: • Reconsideration of Incentives for the Retention and Expansion of Project Wi-Fi • Recruitment of Project Exhale • Discussion of Economic Development Agreement with Blue Star Allen Land, L.P. Reconvene in Open Session The Board reconvened into regular session at 9:02 p.m. Allen Economic Development Coiporanon Regular Meeting, November 15, 2006 Page 3 12 Consider and Take Action on the Reconsideration of Incentives for the Retention and Expansion of Proiect Wi-Fi Representatives from Project Wi-Fi did not appear before the Board. The AEDC and Project Wi-Fi executed an Economic Development Agreement on January 5, 2005 that provided an incentive grant to the company in the amount of $50,000, to be paid on the following schedule: • $30,000 to be paid upon the issuance of a certificate of occupancy • $20,000 to be paid upon the fust anniversary of the issuance of a certificate of occupancy Payment of the incentive was based upon the company fulfilling the following requirements: • Company must lease at least 8,000 square feet of space at 601 Century Parkway for a period of 18 months • Company must enter into the lease on or before January 1, 2005 • Company must create, maintain and fill at least ten (10) employment positions within twelve (12) calendar months of receiving a certficate of occupancy • Company must maintain tangible personal property with a minimum taxable value of $550,000 for the full 18 -month term of the agreement, beginning January 2006 The company received a certificate of occupancy for at least 8,000 square feet at 601 Century Parkway on March 22, 2005. Since the company had met all the requirements under the agreement that could be verified at that time, the initial $30,000 grant was paid to the company. The company relocated to 915 Enterprise Boulevard in Allen prior to the fust anniversary date of their receipt of a certificate of occupancy at 601 Century Parkway While the company has maintained a lease of at least 8,000 square feet of space in Allen, they have failed to maintain space at 601 Century Parkway specifically. Based on the wording in the contract, this failure puts the company in default on the agreement and requires the repayment of the $30,000 incentive grant with interest. The 18 -month period for which the company was required to maintain space at 601 Century Parkway expired on September 22, 2006. On a motion by Mark Pacheco, seconded by Maxine Sweet, the Board voted five (5) for and none (0) opposed to authorize the President of the AEDC Board to negotiate and execute an Amendment to the Economic Development Agreement between the AEDC and Project Wi-Fi to provide for the following: • Require the company to maintain at least 8,000 square feet of space in the City of Allen (as opposed to maintaining space at 601 Century Parkway specifically) • Require the company to supply the AEDC with a copy of their lease at 915 Enterprise Boulevard • Require the company to submit verification of the employment requirement prior to the payment of the second installment of the grant. All other terms in the agreement will remain the same Allen Economic Development Carpo anon Regular Meeting, November 15, 2006 Page 4 13 Consider and Take Action for the Recruitment of Project Exhale Company representatives from Project Exhale appeared before the Board to request assistance to support the company's relocation to space in Allen. No action was taken on this item. 14. Consider-lnnd Take Action on Economic Develoomen[ A¢reement with Blue Star Allen Lend L P Company representatives with Blue Star Allen land, LY and company representatives with a retail developer interested in purchasing the Star Creek commercial development (located on the south side of SH 121, west of US 75 and north of Stacy Road) appeared before the Board to request the modification and assignment of the Economic Development Agreement between the AEDC and Blue Star Allen Land, L.P., executed October 28, 2005. In 2004, Blue Star Allen Land, L P. purchased approximately 529 acres of property located on the south side of SH 121 in Allen for a mixed-use development. The company executed an Economic Development Agreement with the AEDC for the provision of $4 million in incentives to offset some of their costs of building infrastructure and special amenities on the 34.18 -acre (net of floodplain) commercial portion of the property. The commercial portion of this development currently contains the Life Time Fitness and Cinemark Theater facilities and was planned by Blue Star Allen Land, L.P. to ultimately contain 345,000 square feet of retail, restaurant and entertainment venues. The Economic Development Agreement provided for the payment of the $4 million incentive grant on the following schedule: • $1.5 million to paid after January 1, 2006, following the occurrence of (i) the commencement of construction of the Life Time Fitness Center and the Cinemark Movie Theater before January 1, 2006; (ii) completion of the construction of required roadway improvements before January 1, 2006; and (iii) the Company having incurred or paid infrastructure costs of at least $1.5 million. • $1 million to be paid after January 1, 2007, following the occurrence of (i) the company completing construction on two or more buildings that contain at least 175,000 square feet of retail space before January 1, 2007; and (ii) the company completing construction on the Central Fountain before January 1, 2007. • $1 million to be paid after January 1, 2008, following the occurrence of (i) the taxable value of the improvement being at least $18 million as of January 1, 2007; and (ii) the company completing construction of required project infrastructure and providing verification that the ad valorem taxes assessed by the City against the land, improvements and the tangible personal property for the project are current and paid for 2007. $500,000 to be paid after January 1, 2009, following the occurrence of (i) the taxable value of the improvements being at least $36 million by January 1, 2008; (ii) required special amenities being completed on or before January 1, 2009; and (iii) the company supplying documentation of infrastructure costs and payment of taxes. Blue Star Allen Land, L.P., completed all of the requirements associated with the first installment of the grant and received the initial $1.5 million grant installment in April 2006. No action was taken on this item. Allen Economic Development Cmporanon Regular Meeting, November 15, 2006 Page 5 15 Discuss Administrative and Marketing Activities of the AEDC Jennifer Grimm updated the Board on marketing activities and presented the newly redesigned AEDC Newsletter for 4" Quarter 2006. The Board was invited to attend the AEDC Holiday Party on December 7" and the City of Allen Boards and Commissions Dinner on December 8" 16. Executive Director's Reoort Robert Winningham gave the Executive Director's Report. The following items were mentioned: • Robert represented Allen at Corenet in Orlando as a member of the Dallas/Fort Worth Marketing Team • Robert attended meetings with the Allen Independent School District (AISD), Triad Committee, and Allen Chamber of Commerce. • Robert met with local developers and brokers including Buz Franklin, Bruce Heller and Charles Nies. • The AEDC staff is "coalescing" as a team and beginning to further utilize the talents of individual staff members. • Robert recommended that a short AEDC Board Retreat be held for the purpose of team -building and strategic planning. • Project Tel -Drug is still waiting to receive information on the development costs for constructing a building in Allen. 17, Schedulinp of Next AFDC Board of Directors Meeting The next Regular Board meeting was scheduled for December 13, 2006 at 6:00 p.m. 18. Adioum. On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at 9:17 p.m. These minutes approved this 13" day of December, 2006. i C Kurt Kizer, sidem C mencich, Secretary