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HomeMy WebLinkAboutMin - Economic Development Corporation - 2008 - 05/14 - Special CalledP PI ALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC) BOARD OF DIRECTORS SPECIAL CALLED MEETING WEDNESDAY, MAY 14, 2008 Board Staff Guests Kurt Kizer Robert Winningham Pete Smith Tim Wood Jennifer Grimm Peter Vargas Carl Clemencich Daniel Bowman David Hoover Gary Caplinger Maxine Sweet Call to Order and Announce a Ouorum Present. With a quorum of the Board present, the Special Called Meeting of the Allen Economic Development Corporation (AEDC) was called to order by President Kurt Kizer at 6:02 p.m. on Wednesday, May 14, 2008 at the AEDC Office. 1. Approval of Minutes of the April 21, 2008 Special Called Meeting On a motion by Carl Clemencich, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the April 21, 2008 Special Called Meeting of the AEDC Board of Directors. 2. Convene into Closed Executive Session: The Board convened into closed executive session at 6:09 p.m. to deliberate commercial and financial information and economic incentives for the following: • Recruitment of Project Arbitrator • Recruitment of Project PDC2 • Discussion of Local Business Reconvene in Open Session The Board reconvened into regular session at 7:23 p.m. 3 Consider and Take Action for the Recruitment of Protect Arbitrator The Board discussed the project and considered providing assistance. No action was taken on this item. 4. Consider and Take Action for the Recruitment of Project PDC2 The Board discussed the project and considered providing assistance. On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board authorized the Executive Director of the AEDC to enter into a contract with Oncor Electric Delivery to complete a study related to the construction of an electric substation and transmission breaker system to support Project PDC2. AFDC Board of Directors Special Called Meeting Alay N, 2008 - Page 1 5. Discussion of Millennium Technology Park Robert Winningham informed the Board that the owner of an office building located in Millennium Technology Park is considering the possibility of leasing the facility to a church. Winningham proposed that AEDC representatives meet with other property owners to discuss the status of the Covenants and Restrictions (CCAs) for the park. Pete Smith, AEDC attorney, recommended that the AEDC draft a list of uses that would be allowable within the business park and present that list to the Board of Directors of the Millennium Technology Park Property Owner's Association. If the association approves, the CCRs could be amended to reflect the proposed list of allowable uses. Smith mentioned that the CCRs are the primary means that a private association has for restricting uses in a business park. Kurt Kizer recommended that the AEDC use language from other CCR documents, such as those related to the Trammell Crow buildings located in Allen Station Business Park. Pete Smith recommended that AEDC staff draft a list of allowable uses before meeting with other members of the association. The Board requested that staff determine how many votes each property owner is allowed under the current bylaws for the business park. The Board gave the AEDC Executive Director direction to move forward to convene a meeting of the Board of Directors of the Millennium Technology Park Property Owner's Association to discuss the CCRs. 6. Review the Allen Economic Development Corporation's Preliminary Budeet for Fiscal Year 2008-09 and Adjustments for Fiscal Year 2007-08 The AEDC Board typically reviews the proposed preliminary AEDC Budget at the May Board meeting each year. This document includes both adjustments to the budget for the current fiscal year (FY2008) and projections for the upcoming fiscal year (FY2009). Robert Winningham presented the proposed AEDC Budget. Daniel Bowman distributed updated budget documents to the Board. The following line items were noted: • Interest on Investments Account: This revenue account was revised down from $251,000 to $70,000 for the current budget year and revised to $80,000 for the next budget year. These revisions are based on an analysis completed by the City of Allen Finance Department, which was based upon the current schedule of expected AEDC monthly cash balances. • Personnel Salary and Benefit Accounts: The salary and benefit figures were revised based on current AEDC staff salary levels. • Conferences and Training Account: Given the AEDC's increased business recruitment travel, including the cost of attending conferences such as AFCOM, InterOpNet, OFC, NXCOMM, CoreNet, Bio2008, and various TexasOne Events, a slight increase in this line item was proposed. • Dues & Subscriptions Account: This line item is decreasing for the current fiscal year to account for the fact that the Millennium Technology Park Property Owner's Association did not charge the AEDC for association dues during one quarter in 2007 Please note that this item will be increasing in the upcoming fiscal year to account for the cost of the AEDC subscription to Xceligent, the online real estate listing service that provides the property listings for the AEDC website. AEDC Board of Directors Special Called Meeting d4ap 14, 2008 - Page 3 • Rental/Office Lease Account: This line item is decreasing for the current fiscal year Inc to the delay in the AEDC office moving to the Duke building and to account for the two months of free rent the AFDC is receiving from Duke Realty. • AEDC Land Expenses: Due to lower than expected maintenance costs, the 'Sprinkler Maintenance' and 'Miscellaneous Maintenance' accounts are decreasing for the current fiscal year. The cost of mowing AEDC properties has increased significantly, requiring that the'Landscape/Forestry' account be increased for both the current and upcoming fiscal year • Professional Services Account: $8,000 was originally budgeted to pay for expenses related to land surveys and environmental studies for AEDC traces of land. While we did not incur any of these types of expenses thus far in the current fiscal year, we did have a $9,500 expense related to professional services required for the sale of AEDC sales tax bonds. Staff recommends that we increase the budget to account for this additional cost, as well as the cost of several land and utility studies that may be required for upcoming projects. • Chelsea Payment Account: This amount represents an incentive paid to the owners of the Allen Outlet Mall. This line item is projected by the Finance Department based on sales tax projections and other factors. • Capital Expenditures / Land Account: The amount included in this line item accounts for the property taxes paid by the AEDC on behalf of the previous owner of the tract purchased by the AEDC for the City of Allen Service Center. These taxes were offset by a reduction in the total purchase price of the land. Bowman noted that the amounts in the 'Dues & Subscriptions' account and the accounts related to the maintenance of AEDC land tracts may change once the Allen Central Park Property Owner's Association meets and approves a budget. It is expected that the AEDC will begin paying dues to the association, which will in turn maintain the land owned by the AEDC at Bethany & US 75. Assuming this happens, the AEDC will need to take funds out of accounts such as 'Sprinkler Maintenance' and 'Miscellaneous Maintenance' and put it into the 'Dues & Subscriptions' account. Given that the Board is not planning to hold a Regular Board meeting in June, it was decided that the Board would approve the final budget as of this meeting. On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved the AEDC Budget for Fiscal Year 2009 and adjustments to the AEDC Budget for Fiscal Year 2008 with the allowance for minor revisions as needed. 7 Approval of AEDC Financial Reports Daniel Bowman presented the AEDC Financial Reports. On a motion by Carl Clemencich, seconded by Gary Caplinger, the Board unanimously approved the Financial Reports as submitted. 8. Administrative and Marketing Activities of the AEDC / Executive Director's Report Maxine Sweet inquired about the amount of business that the new Cinemark Theater located on SH 121 is receiving. Kurt Kizer believes the theater is receiving a good deal of business. Jennifer Grimm mentioned that business appears to be "fair," although it is better at peak movie - watching times of the week. Grimm noted that Project Z is close to purchasing land on SH 121, AEDC Board of Directors Special Called Meeling Afav 14, 2008 - Page 4 which should help Cinemark's business. Sweet also inquired about leasing activity at Fred Gans' buildings located at Ridgemont Drive and US 75. Grimm noted that Ganz's buildings have had little activity in recent months. Bowman mentioned that several call centers have been considering the facility. Grimm stated that approximately 55,000 square feet on the first two floors of the Duke building have been leased by various tenants. Grimm updated the Board on the marketing activities of the AEDC. She informed the Board that Allies Day was a great success, despite the rain and the car wreck on US 75 that caused some brokers to not attend the event. Over the course of the day, 130 brokers attended the event and one bus load of brokers participated in the tour. Attendees played five holes of golf and then came inside the Chase Oaks clubhouse for the awards ceremony Grimm mentioned that there were many sponsors for this event, including Duke Realty, Oncor, CoServ, Trademark, and Montgomery Farm. Sweet noted that Duke's sponsorship was very generous. Grimm anticipates that the Allen Event Center may be an excellent venue for hosting this event in future years. Robert Winningham announced that Andrews Distributing is moving forward with their project and is in the process of hiring a general contractor. He also noted that Grimm and Tracey Cline have been working hard to complete all of the preparations related to the upcoming International Council of Shopping Centers (ICSC) convention. ICSC attendees will meet briefly after the Board meeting to obtain an agenda for the conference. Winningham mentioned that Mike Konderla with Global Entertainment is already working to sell sponsorships for the Allen Event Center. It appears that Konderla will be very proactive in selling sponsorships. He also noted that Dr. Toni Jenkins took AEDC staff on a tour of the Frisco Collin College campus and gave input regarding the formation of the Allen Career Tech Center. Collin College has very impressive certification programs. Winningham noted that AEDC staff is very busy in June, traveling to various events and moving office locations. Sweet stated that some of the brokers that attended Allies Day thought that $65 million was too much for the AISD to spend on their proposed football stadium. Winningham thanked the AEDC staff for their recent work in assisting with various projects and events. Grimm informed the Board that the City of Allen IT Department had been very generous in loaning the AEDC one of their staff members to assist with the upcoming office move. 9. Scheduling of Next AEDC Board of Directors Meeting The Board determined that there would not be a Regular Board meeting in June. The next Board meeting was scheduled for Wednesday, July 16, 2008 at 6:00 p.m. 10. Adioum On a motion by Maxine Sweet, seconded by Gary Caplinger, the meeting was officially adjourned at 8:03 p in. These minutes approved this 16" day of July 2008. �ll� C-1 Kurt Kizer, sident Carl Clemencich, Secretary