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HomeMy WebLinkAboutMin - Economic Development Corporation - 2007 - 08/15 - RegularI ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING Wednesday, August 15, 2007 Board Staff Guests Kurt Kizer Robert Winningham Pete Smith Tim Wood Jennifer Grimm David Hoover Mark Pacheco Daniel Bowman Paul Colan Maxine Sweet Tracey Cline Rick Hughes Carl Clemencich -Absent Call to Order and Announce a Ouorum 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 6:25 p.m. on Wednesday, August 15, 2007 at the AEDC Office. 1. Approval of Minutes of the July 18, 2007 Regular Meeting On a motion by Tim Wood, seconded by Mark Pacheco, the Board unanimously approved the minutes of the July 18, 2007 Regular Meeting of the AEDC Board of Directors. 2. Citizens' Comments No citizens' comments were made. 3. Approval of AEDC Financial Reports Daniel Bowman presented the AEDC Financial Reports. Mark Pacheco asked if Green Street Development is currently on schedule to meet the required benchmarks stated in their Economic Development Agreement with the AEDC. David Hoover confirmed that such is the case. On a motion by Maxine Sweet, seconded by Mark Pacheco, the Board unanimously approved the AEDC Financial Reports as presented. 4. Convene into Closed Executive Session. The Board convened into closed executive session at 6:32 p.m. to deliberate commercial and financial information and economic incentives for the recruitment of Project Bond, the recruitment of Project Long Haul, and the retention of local businesses. Allen Economic Development Corporation Regular Afeetmg, August 15, 2007 - Page 2 Reconvene in Open Session. 1 The Board reconvened into regular session at 7:55 p.m. 5. Consider and Take Action on Recruitment of Project Bond No action was taken on this item. 6. Recruitment of Proiect Lone Haul No action was taken on this item. 7. Retention of Local Businesses Representatives from Xtem Communications appeared before the Board to request AEDC assistance to retain the company in Allen and support their future expansion. On a motion by Mark Pacheco, seconded by Tim Wood, the Board approved a $200,000 incentive grant to he paid to Xtera Communications in one lump sum payment upon the company's execution of a 7 -year lease on a minimum of 35,000-sf of space at 500 W Bethany Drive. The incentive grant is also contingent upon the company maintaining their operations in Allen for a minimum of 7 years, maintaining a minimum employment level, and maintaining taxable business personal property values at their facility in accordance with the following schedule: • Year I - $3,700,000 • Year 2 - $3,800,000 • Year 3 - $4,100,000 • Year 4 - $4,575,000 • Year 5 - $4,950,000 • Year 6 - $5,725,000 • Year 7 - $6,350,000 The Board also authorized the Executive Director of the AEDC to negotiate the contract with Xtera Communications. 8. Administrative and Marketing Activities of the AEDC / Executive Director's Report Jennifer Grimm announced the winners of the 2007 Millennium Business Awards: • Corporme/Manufacturing Category: Finisar • Local Independent Business Categoy Mustang Technology • Retail/Service Category, Two Rows - Allen • Individual Category: Judge Ron Harris Grimm also invited the Board to attend the Open House for Twin Creeks Rehabilitation Hospital that " will take place on September 76 and announced that the new AEDC website is expected to be active within the next week. Grimm also updated the Board on the status of the new AEDC office lease, noting that she is working on a "Plan B" for the new location of the AEDC office. Allen Economic Development Corporation Regular Meeting, August 15, 2007 - Page 3 Maxine Sweet mentioned that Worley Stein and other members of the Board of the Allen Chamber of Commerce were very impressed with the excellent content of the most recent AEDC newsletter. Sweet complimented Grimm on the newsletter. Sweet also invited the Board to attend Panache, a black tie event that will take place in November and benefits the Allen Arts Alliance. Grimm mentioned that the Allen Arts Alliance is providing the AEDC with a reserved table at the event. Robert Winningham distributed the AEDC budget presentation that was presented at the recent Allen City Council Budget Retreat. The presentation highlighted AEDC projects such as the Cingular Data Center and the new multi-purpose event center. Winningham thanked that Board for allowing the AEDC to complete all of the recent projects. Mark Pacheco mentioned that Winningham did a good job on his budget presentation. Winningham noted that he and Kurt Kizer will appear before the City Council on August 28' to present the recently released 2006 AEDC Impact Report. He also updated the Board on the status of pending AEDC projects, explaining that the formal agreements with Global Entertainment are nearly complete and should be ready for approval in September. Grimm is working with Teresa Warren to prepare for upcoming press and events related to the Multi -Purpose Events Center. It was also noted that The MGHerring Group recently reported an upswing in leasing activity for their development. Winningham mentioned that the AEDC is now directly connected to the City of Allen server. This provides the AEDC office with more accessibility to files stored on the server and allows AEDC staff to interact with City of Allen staff more easily. Winningham also distributed a letter from Chuck Chalifoux, President of RCL Enterprises Inc., thanking the AEDC Board for thew assistance in helping his company expand their operations in Allen. David Hoover noted that the City of Allen is 6 months ahead of schedule on the new Allen multi- purpose events center, according to the construction arm of Global Entertainment. Grimm informed the Board that she will be calling Board members to request their participation in the upcoming Millennium Business Awards Luncheon. 9. Scheduling of Next AEDC Board of Directors Meeting. The next Regular Board meeting was scheduled for Wednesday, September 19, 2007 at 6:00 p.m. 10. Convene into Closed Executive Session. The Board convened into closed executive session at 8:17 p.m. to consider the annual performance review of the Executive Director/CEO. Reconvene in Open Session. The Board reconvened into regular session at 9:10 p.m. 11. Consider and Take Action Relating to the Annual Performance Review of the Executive Director/CEO j On a motion by Mark Pacheco, seconded by Maxine Sweet, the Board approved a salary increase and bonus for the AEDC Executive Director/CEO. I 1 Allen Economic Development Corporation Regular Meeting. August 15. 2007 - Page 4 12. Adjoum. On a motion by Maxine Sweet, seconded by Tim Wood, the meeting was officially adjourned at 9:20 p.m. These minutes approved this W day of September, 2007 Kurt Kizer, P dent Carl Clemencich, Secretary