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HomeMy WebLinkAboutMin - Economic Development Corporation - 2009 - 05/13 - RegularI I ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, MAY 13, 2009 Board Staff Tim Wood Robert Winningham Gary Caplinger Jennifer Grimm Maxine Sweet Daniel Bowman Call to Order and Announce a Quorum Present. Guests Pete Smith John Ho Joey Herald Helen -Eve Liebman Cade Thompson Paul Williams Melissa Lindelow Amy Gerber Ann Marie Wessner-Collins With a quorum of the Board present, the Regular Meeting of the Allen Economic Development Corporation (AEDC) was called to order by President Tim Wood at 6:12 p.m. on Wednesday, May 13, 2009 at the AEDC Office. 1. Approval of Minutes of the April 15 2009 Regular Meeting On a motion by Gary Caplinger, seconded by Maxine Sweet, the Board unanimously approved the minutes of the April 15, 2009 Regular Meeting as presented 2. Convene into Closed Executive Session: The Board convened into closed executive session at 6:14 p.m. to deliberate commercial and financial information and economic incentives for the following: • Consider Economic Development Agreement with Cisco Systems, Inc • Consider Modification of the Recommendation to the Allen City Council and the Collin County Commissioners Court Regarding the Tax Abatement Agreement with Cisco Systems, Inc. • Consider Incentives for the Retention and Expansion of Tenant at One Allen Center Reconvene in Open Session The Board reconvened into regular session at 8:05 p.m. AEDC Board of Directors Regular Meeting May 13, 2009 - Page 2 3 Actions Resulting from Executive Session On a motion by Gary Caplinger, seconded by Maxine Sweet, the Board unanimously approved authorizing the AEDC Executive Director to continue to negotiate the Tax Abatement Agreement and to negotiate and execute the Economic Development Agreement with Cisco Systems, Inc. The Board also moved to modify the Board's previous recommendation to the Allen City Council regarding the Tax Abatement Agreement with Cisco Systems, Inc. based on final contract negotiations and to send that recommendation forward for consideration by the Allen City Council. On a motion by Gary Caplinger, seconded by Tim Wood, the Board authorized the AEDC Executive Director to negotiate and execute an Economic Development Agreement with Halo Group to provide an incentive grant of up to $150,000 to support the expansion of Halo Group in Allen. Maxine Sweet abstained from voting on this item. 4 Approval of AEDC Financial Reports Daniel Bowman presented the AEDC Financial Reports. Tim Wood inquired as to whether Turrentine-Jackson-Morrow was still interested in pursuing an incentive grant from the AEDC. Robert Winningham indicated that the company was still interested in the grant On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board unanimously approved tthe AEDC Financial Reports as presented. 5. Review the Allen Economic Development Corporation's Preliminary Budget for Fiscal Year 2010 and Adiustments for Fiscal Year 2009 Robert Winningham noted that AEDC staff has prepared preliminary budget numbers for the AEDC Board to review Daniel Bowman identified the following notable changes to the AEDC Budget: • The Allen Central Park Property Owner's Association will be taking over management of Allen Central Park as of July 1, 2009 Therefore, the AEDC can budget less in accounts such as Water, Electricity and Landscaping, and instead budget more in the Dues & Subscriptions Account in order to pay Association dues. Duke Realty will use the dues that are collected to cover maintenance -related expenses for the park. • It is proposed that the marketing budget increase $60,000 for the current fiscal year and increase by $110,000 next fiscal year to provide the necessary funds to support strategic AEDC marketing initiatives. • The 'Direct Grants' line item fluctuates each year based on the varmus projects approved by the AEDC Board. AFDC Board of Directors Regulai Meeting May 13, 2009 - Page 3 Bowman also noted that when the increase to the Marketing account is excluded, the proposed modifications to the budget for Fiscal Year 2009 would cause the AEDC operating budget to decrease by 9 -percent (or approximately $60,000). Including the increase to the Marketing account, the operating budget for the AEDC would remain approximately the same with the proposed changes. The overall budgeted expenses for the current fiscal year would decrease by 2.5 -percent (or approximately $100,000), due primarily to a reduction in the budget for paying Chelsea (Allen Premium Outlets) their monthly sales tax reimbursements. Bowman also noted that when the increase to the Marketing account is excluded, the proposed budget for Fiscal Year 2010 would cause the AEDC operating budget to decrease by 4.4% (or approximately $42,000). Including the increase to the Marketing account, the operating budget for the AEDC would increase by 7.21 -percent (or approximately $68,500). The overall budgeted expenses for Fiscal Year 2010 would increase by 13.60 -percent (or approximately $667,187), due primarily to the incentive obligations that exist under outstanding Economic Development Agreements. Jennifer Grimm distributed the proposed AEDC Marketing Plan. Grimm noted that the AEDC has historically increased the marketing budget by very small amounts from year-to- year. It is now proposed that the AFDC make a larger increase to the marketing budget in order to compete more effectively with other cities. The newly proposed AEDC Marketing Plan focuses on visibility and sponsorship opportunities, and contains a variety of objectives and benchmarks to measure its effectiveness. Grimm mentioned that marketing items related to the Allen Central Business District are not included in the proposal because the AEDC is waiting for more specific direction from the Allen City Council. Grimm described the various objectives of the AEDC Marketing Plan, including sponsorship of key trade shows, visibility at broker and site selector events, efforts related to the retention of Allen companies, efforts to suppoit retail and mixed-use developments in Allen, communication with Allen citizens, use of new media channels, and workforce development efforts. Grimm also included a calendar of events that the AEDC will participate in order to gain more public exposure for the City of Allen. Winningham noted that it is helpful to have all this information in a single book. Grimm cited examples of several new marketing avenues that AEDC will be pursuing: • Facebook • New trade shows such as the Consumer Electronics Show • Texas One events • Partnerships with the Greater Dallas Chamber • Partnerships with Site Consultants Tim Wood noted that the AEDC marketing efforts should be targeted towards specific decision makers. Maxine Sweet inquired as to whether the AEDC tracks leads that are generated by participation in trade shows Grimm stated that the AFDC tracks these leads and often uses the AEDC website as a tool for doing so. Winningham noted that the Board can change elements of the AEDC Marketing Plan at any time. AEDC Board of Directon Regular Meeong May 13, 2009 - Page 4 Winningham also mentioned that the AEDC will host an annual town hall meeting and get citizens involved in determining the types of projects the AEDC will pursue. This would also provide an opportunity for AEDC staff to educate the community on economic development and receive feedback from citizens. Winningham stated that Grimm is enhancing the AEDC marketing efforts at his request. He complimented Grimm and Dan Bowman on their efforts to maintain the AEDC website, which currently displays the most recent news and information on Allen Winningham also noted that the AEDC Newsletter may eventually be produced primarily in electronic form, although a small number of hard copies could be made available if needed. Grimm mentioned that a company has issued a Letter -of -Intent to lease the space previously occupied by Celebrity Bakery in Watters Creek. The Board did not have any feedback on the AEDC marketing proposal at this time. Gary Caplinger requested that AEDC staff define various acronyms that were used in the marketing proposal. 6. Board Discussion Regarding the Allen Central Business District This item was tabled until the June AEDC Board Meeting. 7 Board Discussion Regarding the Format of the AEDC Weekly Staff Report Tim Wood stated that he would prefer to not have information related to marketing, meetings with AEDC partners, and other such items included in the AEDC Weekly Staff Report. Rather, he would prefer that the Weekly Report be a one page document that just highlights important facts related to key AEDC projects. Other AEDC activities should only be covered in the AEDC Monthly Staff Report. The general consensus of the Board was to have AEDC staff modify the Weekly Reports to conform to the recommendation of Tim Wood, 8. Discuss Administrative and Marketing Activities of the AEDC and Upcoming Local Events Jennifer Grimm updated the Board on the marketing activities of the AEDC and distributed small gifts supplied by the Origins store located in the Watters Creek development. Grimm also noted that the Greater Dallas Chamber recently released the results of a global survey that ranks Dallas as an elite metropolitan area. AEDC staff will attend an event later this month that showcases this study C H l_� AEDC Boa'd ofDirectms Regular Meering Mav 13, 2009- Page 5 9 AEDC Executive Director's Report Regarding Office Industria] Data Center, and Retail Protects, and Local Partnerships Robert Winningham noted that Project Boss is progressing with their site search and is planning to visit Allen in late May Maxine Sweet inquired about recente-mails she received from Tracey Cline regarding City training. Pete Smith responded that the Texas Economic Development Council will be hosting an Economic Development Sales Tax training seminar in June. Winningham invited Board members to attend this seminar, noting that it is helpful for all Board members to learn the details of the legal application of AEDC sales tax funds In addition, such seminars typically have very useful question and answer sessions Smith also mentioned that the City's annual Boards and Commissions Training will take place in the coming months. Sweet inquired about the appointment of a new AEDC Board member to replace Kurt Kizer. Gaiy Caplinger stated that the Council would be meeting soon to make a decision on the appointment. 10. Scheduling of Next AEDC Board of Directors Meetin The next Board meeting was scheduled for Wednesday, June 17, 2009 at 6:00 p.m. Maxine Sweet noted that she will be unable to attend the lune AEDC Board meeting. ll. Adjourn The meeting was officially adjourned on a motion by Maxine Sweet, seconded by Gary Caplinger, at 8:34 p.m These minutes approved this 17"' day of June 2009. Tim Wood, President Carl Clemencich, Secretary/Treasurer