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HomeMy WebLinkAboutMin - Economic Development Corporation - 2010 - 09/15 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, SEPTEMBER 15, 2010 Board Staff Guests Tim Wood Robert Winningham Peter Vargas Susan Bartlemay Daniel Bowman Bo Bass Guy Caplinger Ryan Shook Timothy Carr — Fiber Systems Maxine Sweet Pete Smith William Guernsey—Fiber Systems Carl Clemencich Rob Meche - Local Company Call to Order and Announce a Ouomm Present 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 6:07 p.m. on Wednesday, September 15, 2010 at the AEDC Office. 1 1. Approval of Minutes of the August 18 2010 Regular Meeting. Maxine Sweet noted that the motion from the approval of the minutes should be changed from Tim Wood to Maxine Sweet. On a motion by Maxine Sweet, seconded by Susan Bartlemay, the AEDC Bond unanimously approved the Minutes of the August 18, 2010 Regular Meeting as presented with the aforementioned changes. 2. Approval of the Economic Development Agreement with Photromcs Inc Dan Bowman presented an Economic Development Agreement with Photromcs, Inc. that was drafted based on the Board's previous direction The agreement includes a grant reimbursing the company five -percent of capital expenditures related to the project, not to exceed a total of $50,000. Photronics must maintain two full-time employees in order to remain in compliance with the agreement. Bowman noted that Phorronics would commit to fulfill these terms by the end of the calendar yen. On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board unanimously approved the Economic Development Agreement with Photromcs, Inc. A AEDCMemng Minutes September /5. 20/0- Page 2 3. Consider and Take Action Regarding the Economic Development A reement with Amphenol Fiber Systems International Bill Guernsey and Tim Carr appeared before the Board to explain the reasons why Amphenol Fiber Systems International is currently below the minimum taxable value stated in their Economic Development Agreement. The company is below the minimum taxable value due to higher than expected inventory meeting the criteria for Freeport exemption, depressed oil and gas prices, more efficient use of capital expenditures, and the relocation of a major client as a result of an acquisition. Guernsey and Carr noted that the company has 140 full-time employees, which is well above the minimum employment requirement of 125 full-time employees. Guernsey and Carr requested that the Board amend the Economic Development Agreement with Amphenol Fiber Systems to adjust the minimum taxable value and increase the employment requirement to ensure compliance in the future. Carl Clemencich noted that a change in the Economic Development Agreement would only result in a loss of $24,000 in revenue to local taxing entities and that the company has been a good corporate citizen of the community. The Board requested that the AEDC Executive Director negotiate a revised agreement with Amphenol Fiber Systems International. �t 4. Consider Amendment or Elimination of the AEDC Restriction Agreement for ® Approximately 1.449 Acres of Land Previously Owned By DBSI 121/Alma Land L.P. on Alma Drive Near SH 121 Robert Winningham updated the Board on the AEDC Restriction Agreement related to land on Alma Drive near SH 121, requesting that the Board consider amending or eliminating the AEDC restriction agreement for the land previously owned by DBSI. The restriction, implemented in 2006, requires that the land be used only for access to retail and office related developments. Winningham noted that the AEDC was working with a developer that was considering purchasing the +/- 140 -acre tract previously owned by DBSI. It was requested that the AEDC Board consider terminating the Restriction Agreement for the 1.449 -acre tract in order to provide potential purchasers of the land greater flexibility in site -planning the overall development. The Board took no action on the matter at the current time 5 Convene into Closed Executive Session The Board Convened into closed executive session at 637 p.m to deliberate real property, commercial and financial information and economic incentives for the following: • Consider Incentives for the Recruitment of Project Scout • Consider Incentives for the Retention and expansion of a Local Company AEDCMeetmg Minutes September 15, 2010- Page Reconvene into Open Session - The Board reconvened into regular session at 7:31 p.m. 6. Actions Resulting from Executive Session No Actions Taken. 7 Approval of AEDC Financial Reports Dan Bowman presented the AEDC financial reports. Bowman mentioned that the AEDC will be under -budget on operating expenses for the 2010 Fiscal Year. Bowman noted that the AEDC anticipates making Incentive Grant payments to Cisco Systems, KONE Elevators and Homeland Healthcare by the end of the current Fiscal Year. He also noted that the last incentive grant payment to Wham! will occur in October, 2010. He also mentioned that the sales tax revenue for the current fiscal year is up 12 -percent from the previous fiscal year. On a motion by Maxine Sweet, seconded by Gary Caplinger, the Board unanimously approved the AEDC Financial Reports as presented. 8. Discuss Administrative and Marketing Activities of the AEDC and Upcoming Local Events. Robert Winningham discussed the administrative and marketing activities of the AEDC and upcoming local events. Winningham thanked the Board for attending the Taste of Watters Creek event, and helping make it a successful promotional event for the development and Allen Chamber of Commerce. Dan Bowman and Ryan Shook presented the new AEDC website that was recently launched, updating the Board on features including social media interactivity, maps, and incentive information. Robert Winningham announced that the AEDC has been notified that it will receive the Community Economic Development Award (CEDA) at the Annual Texas Economic Development Council Conference in Houston in early October for the Cisco Systems project. Winningham extended an invitation to the AEDC Board to join the staff in Houston to help celebrate this momentous accomplishment for the AEDC. 9 AEDC Executive Director's Report Regarding Office Industria] Data Center Retail Projects. and Local Partnerships IThe AEDC Executive Director did not report on any additional projects. AFDC Meeting Minutes Seplettber 15.2010 - Page 4 10. Determine Next Meeting Date The next AEDC Board meeting was scheduled for Wednesday, October 20, 2010 at 6:00 p.m. 11. Convene into Closed Executive Sessmn: Pursuant to Texas Government Code Section 551.074: Annual Performance Review of the Executive Director/CEO The Board reconvened into regular session at 7:31 p m. 12. Consider and Take Action Relating to the Annual Performance Review of the Executive Director/CEO On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved a motion to increase the base salary of the Executive Director/CEO, effective October 1, 2010, and to award a bonus for meeting AEDC's annual goals. 13. Adioum The meeting was officially adjourned on a motion by Tim Wood, seconded by Carl Clemencich, at 9:18 p.m. These Minutes approved this 20°i day of October 2010. —' Tim Wood, P sident Carl Clemencich, Secretary/Treasurer I