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HomeMy WebLinkAboutMin - Economic Development Corporation - 2010 - 12/15 - Regular1 ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, DECEMBER 15, 2010 Board Staff Guests Tim Wood Robert Winningham Joey Herald Susan Bartlemay Daniel Bowman Bo Bass Carl Clemencich Ryan Shook Peter Vargas Guy Caplinger Pete Smith Jeff Montgomery — KONE Inc. Scott Sutherland Call to Order and Announce a Quorum 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, December 15, 2010 at the AEDC Office. L Election of Officers of the AEDC Board of Directors Robert Winningham noted that the AEDC Board of Directors elects officers annually. The three officer positions are the President, Vice President, and Secretuy/Treasumr. Winningham noted that Maxine Sweet, who has been replaced on the Board by Scott Sutherland, had served as Board Vice President for the past several terms. Winningham also noted that Carl Clemencich has assumed the responsibilities of Treasurer/Secretary for the past several terms. Pete Smith noted that the results of the election of officers will become effective as of January 1, 2011. Carl Clemencich nominated Tim Wood as President of the AEDC Board of Directors, stating that Wood has done an excellent job in his duty as President in the past year. Gary Caplinger nominated Carl Clemencich for the Secretaiy/Treasurer positron, stating that Clemencich has done an excellent job in fulfilling his responsibilities. Caplinger also nominated Susan Bartlemay as Vice President of the AEDC Board Robert Winningham noted that it is the responsibility of the Vice President to assume the duties of the President in the President's absence On a motion by Gary Caplinger, seconded by Scott Sutherland, the Board unanimously elected Tim Wood as President, Susan Bartlemay as Vice President, and Carl Clemencich as Secretary/Treasurer of the AEDC Board of Directors. The elected officers will serve in these capacities until December 2011 AEDCMeelmg Minute, December 15, 2010 - Page 2 2. Approval of Minutes of the November 17 2010 Regular Meeting_ On a motion by Gary Caplinger, seconded by Scott Sutherland, the Board unanimously approved the Minutes of the November 17, 2010 Regular Meeting as presented. 3 Approval of Amended and Restated Economic Development A reement with KONE Inc Jeff Montgomery updated the Board on KONE's progress at both its One Allen Center and Twin Creeks Business Center locations. The company has exceeded its employment Projections, with a total of 90 individuals employed between both facilities. The company anticipates that the taxable value of the business personal property at its Twin Creeks location will exceed $10 million as of January t, 2011, which is well over the $6 million taxable value required in the agreement. The company was required to invest $1.5 million at One Allen Center; however, based on cost savings that the company obtained in finishing out the space, the company only invested $1,128,807 at the building. On the other hand, KONE was required to invest $6 million at Twin Creeks Business Center and actually invested $11,343,506. Overall, the company was required to invest $7.5 million between the two buildings but has exceeded expectations by investing $12.4 million. The proposed amendment of the Economic Development Agreement would require that the total combined capital investment at the two facilities be at least $7 5 1 million, allowing the company to remain in compliance with its Economic Development Agreement. On a motion by Susan Bartlemay, seconded by Gary Caplinger, the AEDC Board of Directors unanimously approved the Amended and Restated Economic Development Agreement with KONE Inc. 4. Consider Authorizing an Amendment to and/or Termination in Whole or in Part of the Real Estate Sales Contract with Southern One Twenty -One Investments Ltd. ReRardiniaa 76.599 acre Tract of Land out of the Francis Dosser Survey,Abst. No. 280 and George Fitzhugh Survey, Abst No 321 City of Allen Collin County Texas Robert Winningham updated the Board on the AEDC's contract to purchase a 76.599 -acre property on SH 121 for economic development purposes. Since more than one prospect is looking to locate on all or a portion of this property, Peter Ng has offered to extend the contract between Southern One -Twenty -One Investments and the AEDC through March 31, 2011 The current 4" Amendment is set to expire December 20, 2010. If the Board does not take action to extend or terminate the agreement, the AEDC would be required to purchase the 76.599 -acre property and would lose the ability to recover the $119,000 earnest money presently in escrow On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved terminating the Real Estate Sales Contract with Southern One Twenty -One Investments, Ltd. regarding a 76.599 acre tract of land out of the Francis Dosser Survey, Abst. No. 280 and George Fitzhugh Survey, Abst. No. 321, City of Allen, Collin County, Texas AFDC Meeting Minutes December 15, 2010 - Page 3 5. Consider Approval of the AEDC Entertainment Policv Robert Winningham presented the revised AEDC Entertainment Policy to be considered by the Board for approval. Winningham noted changes from the policy presented to the Board in October, including an allowance for the purchase of alcohol in special circumstances and the incorporation of existing City of Allen policies regarding meals and travel -related expenses. Winningham noted that the approved use of AEDC funds to purchase alcohol would provide flexibility in certain situations and allow the AEDC to compete with other cities that already allow for such expenditures. Peter Vargas noted that this is a delicate issue because the use of tax funds for the purchase of alcohol could elicit criticism and scrutiny from citizens. Vargas suggested that the AEDC solicit corporate sponsorships whenever hosting an event. Scott Sutherland noted that AEDC Staff should not have to expend personal funds to purchase alcohol in order to entertain clients. Susan Bartlemay stated that if the AEDC is to purchase alcohol with AEDC funds, it must be on a controlled and limited basis in order to limit the AEDC's potential liability The general consensus of the Board was to revisit this matter at a later time. No action was taken. 6. Approval of AEDC Financial Reports Dan Bowman presented the AEDC financial reports Bowman noted that the negative balance in the AEDC interest account was due to an accounting correction made by the Finance Department. Carl Clemencich inquired as to why the AEDC had already spent a large amount from the marketing account foi the current fiscal year. Winningham noted that many AEDC ad contracts require payment in advance for the entire year. Bowman noted that the Economic Development Agreement with Atlas Copco was executed and the company will receive its first incentive payment in January, 2011. Bowman stated that AEDC sales tax receipts are 3.5% under budget and 17% greater than they were at this point in the previous year. On a motion by Carl Clemencich, seconded by Susan Bartlemay, the Board unanimously approved the AEDC Financial Reports as presented. _1 4FDC Ale, lnrg Maadrs Decrmher 152010 Paged 7 Discuss Administrative and Marketing Activities of the AFDC and Upcoming Local Events. Robert Winningham discussed the adminisuanve and marketing activities of the AFDC and Upcoming local events. Winningham noted that the AFDC Holiday Party went very well this year and had strong attendance Winningham noted that the AFDC office would be closed on Friday, December 24, Monday, December 27 and Friday, December 31 8. AFDC Executive Director's Report ReizardinOffice,Industrial Data Center Retail Projects, and Local Partnership Robert Winningham updated the Board on office, industrial, data center, retail projects and local partnerships Winningham noted that Project Race Car is currently on hold while local company officials await direction from their corporate headquarters. Winningham noted that Dan Bowman has been working with City Staff to recruit a wakeboarding park to Allen. 9 Determine Next Meeting Date The next AFDC Board meeting seas scheduled for Wednesday, January 19, 2010 at 6'00 p.m 10. Adiourn The meehng was officially adjourned on a motion by Tim Wood, seconded by Susan Bortlemay at 7 15 p.m These Minutes approved this 19ie day of January 2011. Tim Wood, President Carl Clemencich, Secretarv/Treasurer