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HomeMy WebLinkAboutMin - Economic Development Corporation - 2010 - 08/18 - RegularCall to Order and Announce a Quorum Present With a quomm of the Board present, the Regular Meeting of the Allen Economic Development Corporation (AEDC) was called to order by President Tim Wood at 6:10 p.m. on Wednesday, August 18, 2010 at the AEDC Office. 1. Approval of Minutes of the July 21 2010 Regular Meeting. On a motion by Tim Wood, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the July 21, 2010 Regular Meeting as presented. 2. Consider and Take Action Regarding Companies in Non -Compliance with AEDC Economic Development Agreements Dan Bowman updated the Board on five companies that are in non-compliance with AEDC Economic Development Agreements or City of Allen Tax Abatement Agreements for the current tax year. Bowman noted that Applied Signal Technology and Cornerstone Development have taken measures to correct the discrepancies in their minimum taxable values in order to comply with their Economic Development Agreements. Bowman mentioned that Amphenol Fiber Systems has an approximately $800,000 discrepancy in its taxable value. The company has indicated that this is the result of an error in their property appraisal from a previous year and the fact that more of their inventory was non-taxable than previously expected. Amphenol Fiber Systems plans to send representatives to the September AEDC Board Meeting to discuss their non-compliance. Bowman stated that Twin Creeks Hospital plans to pay approximately $70.00 to both the City of Allen and the AEDC in order to maintain compliance with its Economic Development Agreement ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, AUGUST 18, 2010 Board Staff Guests Tim Wood Robert Winningham Peter Vargas Susan Bartlemay Daniel Bowman Lee Battle Guy Caplinger Ryan Shook John Baumgartner Maxine Sweet Kevin Laughlin Eric Rose, Visitor Carl Clemencich -Absent Bryan Kasprowicz, Local Company Call to Order and Announce a Quorum Present With a quomm of the Board present, the Regular Meeting of the Allen Economic Development Corporation (AEDC) was called to order by President Tim Wood at 6:10 p.m. on Wednesday, August 18, 2010 at the AEDC Office. 1. Approval of Minutes of the July 21 2010 Regular Meeting. On a motion by Tim Wood, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the July 21, 2010 Regular Meeting as presented. 2. Consider and Take Action Regarding Companies in Non -Compliance with AEDC Economic Development Agreements Dan Bowman updated the Board on five companies that are in non-compliance with AEDC Economic Development Agreements or City of Allen Tax Abatement Agreements for the current tax year. Bowman noted that Applied Signal Technology and Cornerstone Development have taken measures to correct the discrepancies in their minimum taxable values in order to comply with their Economic Development Agreements. Bowman mentioned that Amphenol Fiber Systems has an approximately $800,000 discrepancy in its taxable value. The company has indicated that this is the result of an error in their property appraisal from a previous year and the fact that more of their inventory was non-taxable than previously expected. Amphenol Fiber Systems plans to send representatives to the September AEDC Board Meeting to discuss their non-compliance. Bowman stated that Twin Creeks Hospital plans to pay approximately $70.00 to both the City of Allen and the AEDC in order to maintain compliance with its Economic Development Agreement AFDC Meenng Minules August 18, 2010- Page 2 3. Consider Approval of Funds Toward the Construction of a U.S. Highway 75 Acceleration Lane. John Baumgartner presented a plan to construct an acceleration lane to help facilitate the increase in traffic that will result from Cabela's new Allen location. Baumgartner stated that the total cost of construction is estimated to be approximately $200,000 and Cabela's has agreed to pay half the total cost. Baumgartner proposed that the remaining cost of the project be split between the City of Allen and the AEDC. On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board unanimously approved funding the construction of an acceleration lane on U.S. Highway 75 in the amount of twenty-five percent of the total cost of the project up to $50,000. 4. Consider Approval of a Joint Agreement by and between the AEDC City of Allen and Aerial Spins. Dan Bowman updated the Board on a proposed agreement between the AEDC, City of Allen and Aerial Spins for the creation of an interactive panoramic map of Allen that includes aerial images of various Allen locations. This map would be displayed on both the AEDC and City of Allen websites. Bowman explained that the project would initially include seventy-two panoramic maps with icons for community facilities, tourism destinations and commercial building vacancies. The initial cost of the map to be created by Aerial Spins would be $60,000, with a recurring $7,500 annual maintenance cost. The costs would be split evenly between the AEDC and the City of Allen. Tim Wood inquired if businesses would pay to have their information incorporated into the map. Bowman responded that building owners would assume the cost of interior shots of their buildings. Gary Caplinger and Susan Bartlemay inquired if the AEDC might receive compensation in the future from businesses utilizing the map in order to recoup pan of the initial investment. Robert Winningham agreed that it was worthwhile to investigate potential financial benefits for the AEDC and City On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board unanimously approved authorizing the Executive Director to negotiate a contract with Aerial Spins in an amount no greater than $30,000 plus the cost of half the annual maintenance fee. 5. Consider and Take Action on a Recommendation to the Allen City Council for Approval of the City of Allen Tax Abatement Policy. Robert Winningham noted that every two years the Allen City Council approves the City of Allen Tax Abatement policy. Winningham recommended extending the policy in its current form, explaining that the policy has been very successful in past years. On a motion by Maxine Sweet, seconded by Susan Bartlemay, the AEDC Board unanimously approved a recommendation to the Allen City Council for approval of the City of Allen Tax Abatement policy. AEDC Meeting Minutes August 18, 2010 - Page 3 6. Convene into Closed Executive Session The Board convened into closed executive session at 6:55 P.M. to deliberate real property, commercial and financial information and economic incentives for the following: • Consider Incentives for the Recruitment of Project Mastermind • Consider Incentives for the Retention and Expansion of Local Company A • Consider Incentives for the Retention and Expansion of Local Company B Reconvene into Open Session The Board reconvened into regular session at 7,47 p.m. 7 Actions Resulting from Executive Session On a motion by Maxine Sweet, seconded by Gary Caplinger, the AEDC Board unanimously approved authorizing the Executive Director to negotiate an Economic Development Agreement with Project Mastermind. On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board unanimously approved authorizing the Executive Director to negotiate an Economic ® Development Agreement with Photronics to provide a $50,000 grant to assist the company in locating a new biomedical division in Allen. 8. Consider Authorizing nn Amrndmrnr in and1nr T,.... ;n,.:,.., :., un.,ae ,._:_ o__. _,— Fitzhugh Survey. Abst No 321 City of Allen Collin County Texas Robert Winningham requested that the AEDC Board authorize him to extend the AEDC', option to purchase land on State Highway 121. Kevin Laughlin notes that if an amendment to the existing contract is passed, the Board can still authorize the AEDC Executive Director to terminate the agreement prior to the next Board meeting if such action becomes necessary On a motion by Susan Bartlemay, seconded by Maxine Sweet, the AEDC Board unanimously approved authorizing the Executive Director to negotiate and sign a Fourth Amendment to the Real Estate Sales Contract dated November 20, 2009 with Southern One Twenty One Investments, Ltd. extending the inspection period to December 20, 2010, and closing date to January 31, 2011, and further authorize the Executive Director to terminate said contract in whole or in part on or before said December 20, 2010, without further action from the Board. 9 Approval of the AEDC Financial Reports Dan Bowman presented the AEDC financial reports. Bowman mentioned that Project Mastermind has been included on the AEDC cash flow analysis as a pending project. He also AFDC Meeting Minutes August 18, 2010 - Page 4 stated that the AEDC expects to make payments to Cisco, KONE Elevators, and Homeland Healthcare prior to the end of the current Fiscal Year. On a motion by Guy Caplinger, seconded by Maxine Sweet, the Board unanimously approved the AEDC Financial Reports as presented. 10. Discuss Administrative and Marketing Activities of the AEDC and Uncoming Local Events. Robert Winningham discussed the administrative and marketing activities of the AEDC and upcoming local events. Winningham noted that the AEDC is featured in a half -page advertisement in the program for the Chinese Institute of Engineers banquet, which will take place at the Intercontinental Hotel in Addison on Saturday, August 21. He also noted that the AEDC will host a real estate broker event at the B.B. King concert on Sunday, August 29 at the Allen Events Center. Winningham invited the Board to attend the Tech Titans Awards Gala on August 27 and the Taste of Watters Creek event in September. Winningham mentioned that the AEDC will begin mailing the new Allen aerial map to brokers and developers soon. Peter Vargas and Gary Caplinger noted that the City Council Budget Retreat was very successful. Vargas commented that the redevelopment of the Chase Oaks Golf Course is going to occur later than projected. Lee Battle mentioned that a plethora of restaurants and retail companies will be locating to Allen in the upcoming months. 11. AEDC Executive Director's Report Regarding Office Industrial Data Center Retail Proiects, and Local Partnershros The AEDC Executive Director did not report on any additional projects. 12. Determine Next Meeting Date The next AEDC Board meeting was scheduled for Wednesday, September 15, 2010 at 6:00 p.m. 13. Adjourn The meeting was officially adjourned on a motion by Maxine Sweet, seconded by Gary Caplinger, at 8:30 p.m. These Minutes approved is 15'" day of September 2010. Tim Wood, President Carl Clemencich, Secretary/Treasurer