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HomeMy WebLinkAboutMin - Economic Development Corporation - 2007 - 11/14 - RegularA I A ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING Wednesday, November 14, 2007 Board Kurt Kizer Tim Wood Carl Clemencich Mark Pacheco —Absent Maxine Sweet -Absent Staff Robert Winningham - Absent Jennifer Grimm -Absent Daniel Bowman Call to Order and Announce a Quorum Present. Guests Peter Vargas Pete Smith Kevin Harrmeke David Hoover Kerby Smith Bill Dahlstrom Susan Singer Landy Rodriguez 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 14, 2007 at the AEDC Office. Consent Agenda On a motion by Tim Wood, seconded by Carl Clemencich, the Board voted to remove Agenda Items No. 2 from the consent agenda and adopt the consent agenda as follows: 1. Approval of Minutes of the October 17, 2007 Regular Meeting The motion carried. 2. Approval of Economic Development Agreement with Sanmina, L.P. No action was taken on this item. 3. Citizens' Comments Kurt Kizer requested that Citizens' Comments not be included as an item on future AFDC Board Agendas. 4. Approval of AEDC Financial Reports Daniel Bowman presented the AEDC Financial Reports. Kevin Hammeke mentioned that any references to debt payments for the Multi -Purpose Events Center should be titled `AEDC Series 2007/2008 Bonds' Hammeke also noted that debt payments for the Multi -Purpose Events Centers will not commence until January, 2008. On a motion by Carl Clemencich, seconded by Tim Wood, the Board unanimously approved the AEDC Financial Reports as presented. Allen Economic Development Corporation Regular Meeting, November 14. 2007 - Page 2 5. Approval of Revisions to the Economic Development Agreement with Montgomery Farm Garden District. Ltd and Coventry 11 DDR/Trademark Montgomery Farm L P a Texas Limited Partnership for the Development of Watters Creek at Montgomery Faren Pete Smith, AEDC Attorney, updated the Board on proposed amendments to the Economic Development Agreement with Montgomery Farm Garden District, Ltd. The amendments will provide for the following: • All of Emerson Partners' rights in the agreement will now pass to Trademark • Adjust the outside date for the Completion of Construction for Phase I, II, and III from October 1, 2013 to October 1, 2012 • Revise floor areas for Retail Phase I from 672,463 to 805,000 square feet • Decrease the taxable value requirement for Retail Phase I -A from $49 million to $29 million to reflect the taxable improvements and land that Trademark is responsible for and controls • Decrease the taxable value requirement for the Garden District from $100 million to $80 million to reflect the taxable improvements and land that Trademark is responsible for and controls • Decrease the capital investment requirement for Retail Phase 1-A from $49 million to $29 million to reflect the improvements that Trademark is responsible for and controls • Decrease the capital investment requirement for Retail Phase I from $100 million to $80 million to reflect the improvements that Trademark is responsible for and controls • Revise required parking spaces to 1,985 (with Trademark responsible for 1,667 spaces) Additional minor revismns to the agreement were also requested. Pete Smith explained that the summary of proposed revisions that is being presented to the Board is accurate and reflects the wording in the amended document. He recommended that the Board approve the agreement substantially as presented. Peter Vargas noted that the AEDC Board would be given time to review the full agreement and submit any minor changes to Pete Smith prior to the execution of the agreement. Kurt Kizer inquired as to why the required taxable value in the agreement is being decreased. Peter Vargas explained that the project has been segregated into smaller components, with the AEDC agreement only covering 62 acres of the overall project. The AEDC agreement had previously covered 92 acres, which accounts for the decrease in the required taxable value. Kerby Smith mentioned that Trademark is not increasing their total request, but simply requesting that the requirements be prorated to fit the new scope of the project. Kevin Hammeke noted that the TIF Board for this project has already approved a financing plan that reflects the amended wording of the AEDC, ACDC, and City of Allen TIF agreements. Kerby Smith, Trademark Property Company, stated that Trademark has invested $35 million in capital improvements for this project to date. The company now controls all of the property down to the Green Tract. Kerby Smith feels that the company will exceed the projections that were originally presented to the City of Allen in December 2005. Trademark has secured a tenant that will have a sales volume projected to exceed $1,000 per square foot. Approximately 300,000-350,000 square feet of the development should be completed by the grand opening in April or May of 2008. Kerby Smith also noted that the office component of the development is moving forward and Trademark would enjoy having the AEDC as a tenant in the development. 1 Bill Dahlstrom, Attorney for Trademark Property Company, thanked Peter Vargas, Kevin Hammeke, and Pete Smith for their efforts on the amended agreement. Peter Vargas recognized Kevin Hammeke's efforts. Allen Economic Development Corporation Regular Meeting, November 14, 2007 - Page 3 On a motion by Tim Wood, seconded by Carl Clemencich, the Board voted unanimously to approve the Amended and Restated Economic Development Agreement with Montgomery Farm Garden District, Ltd. and Coventry II DDR/Trademark Montgomery Farm L.P., a Texas Limited Partnership, substantially as presented, contingent upon the document being reviewed by the AEDC Attorney and any required minor revisions being made. 6. Convene into Closed Executive Session The Board convened into closed executive session at 6:59 p.m. to deliberate commercial and financial information and economic incentives for the recruitment of Project Olympia, and to seek confidential legal advice from the AEDC Attorney regarding the repayment of an AEDC incentive grant per an Economic Development Agreement Reconvene in Open Session The Board reconvened into regular session at 7.47 p.m. 7 Consider and Take Action for the Recruitment of Project Olympia On a motion by Tim Wood, seconded by Carl Clemencich, the Board authorized the Executive Director of the AEDC to negotiate an Economic Development Agreement with Project Olympia based on the Board's direction. 8. Authorize the Executive Director to Pursue Repayment of Incentive Grant From Local Business Per Terms of Previously Executed Economic Development Agreement No action was taken on this item. 9. Administrative and Marketing Activities of the AEDC /Executive Director's Report Daniel Bowman invited the Board to attend several upcoming events, including the AEDC Christmas Party and the City of Allen Boards and Commissions Dinner. Bowman also updated the Board on the status of Sage Telecom, explaining that the company was recently purchased by an investment group and is undergoing some changes. The company will be making some important decisions over the next three months. Bowman noted that Duke has executed leases on a total of 13,500 square feet at One Allen Center. Duke is fairly certain that leases will be executed on an additional 9,000 square feet shortly. The Common Park Area for Allen Central Park has been completed. Bowman also noted that the Collin County Association of Realtors (CCAR) has not come to terms with the Cottonwood Creek Baptist Church for the purchase of land at Stacy Road and SH 121 to construct their office building. The company is now evaluating other sites, including the DBSI tract located on SH 121. No Marketing Report or Executive Director's Report was given. Allen Economic Development Corporation Regular Meeting, November 14, 2007 - Page 4 10. Scheduling of Next AEDC Board of Directors Meeting The next Board meeting was scheduled for Wednesday, December 19, 2007 at 6:00 p.m. 11. Adjourn On a motion by Tim Wood, seconded by Carl Clemencich, the meeting was officially adjourned at 7:50 p.m. These minutes approved this 19' day of December, 2007 Kurt Kizer, Pres crit Carl Clemencich, Sec `��,°� 0 n