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HomeMy WebLinkAboutMin - Economic Development Corporation - 2010 - 10/20 - RegularCall 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 6:10 p.m. on Wednesday, October 20, 2010 at the AEDC Office. 1 1. Approval of Minutes of the September 15 2010 Regular Meeting On a motion by Maxine Sweet, seconded by Gary Caplinger, the AEDC Board unanimously approved the Minutes of the September 15, 2010 Regular Meeting as presented 2. Approval of First Amendment to Amended and Restated Economic Development Agreement with Coventry II DDR/Trademark Montgomery Farm LT. Robert Winningham presented the First Amendment to Amended and Restated Economic Development Agreement with Coventry 11 DDR/Trademark Montgomery Farm L.P Dan Bowman mentioned that per the Board's direction, the amended Economic Development Agreement increases the annual grant payments from 50 -percent of the AEDC sales tax receipts to 100 -percent of the AEDC sales tax receipts beginning on April 1, 2012. These increased payments will be limited to a period of 5 -years and should not be construed as increasing the cap on the total AEDC grant amount. Carl Clemencich inquired if the maximum grant cap amount of $4.635 million could be added to Section 3 of the amended Economic Development Agreement to ensure clarity Joe Goifida responded that they would add the specified number to Section 3 as requested. On a motion by Susan Bartlemay, seconded by Maxine Sweet, the AEDC Board unanimously approved the First Amended and Restated Economic Development Agreement with Coventry 11 DDR/Trademark Montgomery Farm L.P with the recommended change. ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, OCTOBER 20, 2010 Board Staff Guests Tim Wood Robert Winningham Joey Herald Susan Bartlemay Daniel Bowman Bo Bass Gary Caplinger Ryan Shook Lydia Collins —Atlas Copco Maxine Sweet Joe Gorfida Bob Hagewood — Stream Realtv Carl Clemencich Steve Horowitz—Allen ISD 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 6:10 p.m. on Wednesday, October 20, 2010 at the AEDC Office. 1 1. Approval of Minutes of the September 15 2010 Regular Meeting On a motion by Maxine Sweet, seconded by Gary Caplinger, the AEDC Board unanimously approved the Minutes of the September 15, 2010 Regular Meeting as presented 2. Approval of First Amendment to Amended and Restated Economic Development Agreement with Coventry II DDR/Trademark Montgomery Farm LT. Robert Winningham presented the First Amendment to Amended and Restated Economic Development Agreement with Coventry 11 DDR/Trademark Montgomery Farm L.P Dan Bowman mentioned that per the Board's direction, the amended Economic Development Agreement increases the annual grant payments from 50 -percent of the AEDC sales tax receipts to 100 -percent of the AEDC sales tax receipts beginning on April 1, 2012. These increased payments will be limited to a period of 5 -years and should not be construed as increasing the cap on the total AEDC grant amount. Carl Clemencich inquired if the maximum grant cap amount of $4.635 million could be added to Section 3 of the amended Economic Development Agreement to ensure clarity Joe Goifida responded that they would add the specified number to Section 3 as requested. On a motion by Susan Bartlemay, seconded by Maxine Sweet, the AEDC Board unanimously approved the First Amended and Restated Economic Development Agreement with Coventry 11 DDR/Trademark Montgomery Farm L.P with the recommended change. AFDC Meeting Matures October 20, 2010 - Page 2 3. Approval of Amended and Restated Economic Development Agreement with Amohenol Fiber Systems International Dan Bowman presented the Amended and Restated Economic Development Agreement with Amphenol Fiber Systems International. Bowman stated that the Economic Development Agreement had been adjusted per the Board's direction by increasing the minimum number of employees and decreasing the minimum taxable values required for the company to remain in compliance. On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board unanimously approved the Amended and Restated Economic Development with Amphenol Fiber Systems International as presented. 4. Convene into Closed Executive Session The Board convened into closed executive session at 6 18 p m, to deliberate real property, commercial and financial information and economic incentives for the following: • Consider Incentives for the Retention and Expansion of a Local Company A • Consider Incentives for the Retention and expansion of a Local Company B • Consider Incentives for the Recruitment of Project Pavilion Reconvene into Open Session - The Board reconvened into regular session at 7:31 p m. 5 Actions Resulting from Executive Session The AEDC Board unanimously approved authorizing the Executive Director to negotiate an agreement with Project Pavilion in accordance with the terms presented to the Board 6. Consider Approval of Training Funds for the AISD Career -Tech Center Erudnqerin Program Robert Winningham and Steve Horowitz presented a proposal for the AEDC to provide a grant to support the AISD Career -Tech Center Engineering Program. Winningham stated that the Allen Independent School District (AISD) Career -Tech Center is currently under construction and is being funded by $21 million in bonds. Winningham also noted that he has spoken with several local companies that will consider donating funds and equipment to help facilitate a high school dual -credit engineering program. Steve Horowitz stated that starting such a program is important because there is currently a shortage of engineers graduating from national universities. He mentioned that Collin College has recently emphasized its engineering program to help combat this trend. Collin College has agreed to partner with the AISD to create a high-school dual -credit engineering program that would allow high school students to earn credit toward a degree at Collin AFDC Meering Minutes October 20, 2010 - Page 3 College or the University of Texas at Dallas. He mentioned this would be beneficial for local student retention. The AEDC grant money would go toward purchasing text books or scholarships for low income students. Gary Caplinger expressed his concern that if the AEDC offers a grant to this program, it will be difficult to decipher what other causes the AEDC should support. Caplinger explained that unlike private sector corporations, the AEDC has political ramifications they must consider when offering grants. Robert Winningham agreed and stated that giving a grant to the AISD Career -Tech Center Engineering Program would be beneficial for the AEDC because it shows an interest in the educational development of a target industry of Allen. Gary Caplinger agreed that the program is a suitable use of AEDC funds, however it is important that the designated funds be used appropriately and efficiently. Caplinger inquired how often the text books will change editions, and also if 4A funds can legally be allocated for this type of program. Caplinger noted that if the Board agrees to provide funds to this program, it might spur other community programs to approach the AEDC for financial support. Steve Horowitz stated that the books will be used by several different students before changing editions. Horowitz mentioned that AEDC funding of books would allow more students to access the program Joe Gorfida noted that 4A funds could be used for this project. Susan Bartlemay agreed that the AEDC should develop criteria to determine which programs can apply to receive AEDC grant funds. Bardemay also noted that the AEDC should be directly involved with the program. Robert Winningham stated that the AEDC's involvement and investment in the Engineering Program would be helpful in convincing local businesses to donate funds and equipment to the program. Winningham also noted that the AEDC's grant would assist local students in pursuing higher education objectives. On a motion by Maxine Sweet, seconded by Susan Bartlemay, the AEDC Board unanimously approved a $10,000 grant to the Foundation for Allen Schools to be designated specifically for the AISD Career -Tech Center Engineering Program, 7 Discuss Proposed Rental of Cinemark Facilitv Located on SH 121 Bo Bass noted that the current AEDC Economic Development Agreement with Cinemark requires that the Cmemark facility be used primarily as a theater. A national trend has shown that renting theater space for church and other organizational use has become prominent. Dan Bowman noted that the AEDC does not plan to change the language in the original contract with Cmemark. It is requested that the Board provide feedback on whether the temporary rental of the Cmemark theater to a church would cause the company to be in non- compliance with its Economic Development Agreement. The City has made the decision to allow rental of the Cinemark complex for religious services on a limited basis. AFDC Meeting Minutes October 20, 2010 - Page i The general consensus of the Board was that such a rental would not adversely affect the compliance of Cinemark with its Economic Development Agreement. 8. Consider Approval of the AEDC Entertainment Policy Robert Winningham presented the proposed AEDC Entertainment Policy. Winningham noted that it would be beneficial for the Board to establish an Entertainment Policy in order to ensure AEDC marketing funds are used appropriately The Entertainment Policy would encompass the AEDC use of the Allen Event Center, as well as the use of AEDC funds for general entertainment with brokers, developers, site selectors and prospective companies. The draft policy states that at least one AEDC staff member must be present for events at the Allen Event Center, and two tickets will be designated for Board member attendance. For general entertainment events, either the Executive Director or Assistant Director must be present, Board member attendance is preferred, and receipts must be submitted. Receipts over $1,000 must be approved by the Executive Director, Board President and Board Treasurer. A code of conduct that is consistent with the city code of conduct will be implemented as well. Carl Clemencich recommended creating a form for entertainment authorizations similar to the form used for travel authorizations No action was taken on the policy at the current time. 1 9 Discussion of the Allen Central Business District Discussion will occur during the November Board meeting. 10. Aporoval of AEDC Financial Reports Dan Bowman presented the AEDC financial reports. Bowman mentioned that the AEDC was under -budget on operating expenses for the 2010 Fiscal Year Bowman noted that the AEDC anticipates making incentive grant payments to Cisco Systems and KONE Elevators soon. 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. 11. 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 mentioned that the Texas Stampede will occur in Allen in November. Winningham mentioned that Tim Wood will present the AEDC Annual Report to the Allen City Council on Tuesday, October 26 AEDC Meeting Minutes October 20. 2010 - Page 5 Winningham presented the Community Economic Development Award (CEDA) which was given to the AEDC by the Texas Economic Development Council during the recent annual convention in Houston. The CEDA is given to communities that have completed a project in the past year that displays the highest level of excellence in professional economic development. Winningham also presented a Dallas Morning News article showing that recent Allen housing sales figures were strong in comparison to the rest of the Metroplex. 12. AEDC Executive Director's Report Regarding Office Industrial Data Center Retail Projects, and Local Partnerships The AEDC Executive Director did not report on any additional projects. 13. Determine Next Meeting Date The next AEDC Board meeting was scheduled for Wednesday, November 17, 2010 at 6:00 p.m. 14. Adiourn 1 The meeting was officially adjourned on a motion by Tim Wood, .seconded by Maxine Sweet, at 9:00pm. These Minutes approved this 17'" day of November 2010. Tim Wood, President Carl Clemencich, Secretary/Treasurer P4