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HomeMy WebLinkAboutMin - Economic Development Corporation - 2011 - 02/16 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, FEBRUARY 16, 2011 Board Staff Tim Wood Robert Winningham Susan Bartlemay Daniel Bowman Carl Clemencich Ryan Shook Gary Caplinger Pete Smith Scott Sutherland Call to Order and Announce a Quorum Present Guests Peter Vargas Matthew Shoemake — Wham! Inc. Nadeem Ahmed — Wlmm! Inc. 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, February 16. 2011 at the AEDC Office. 1. Approval of Minutes of the January 19 2011 Regular Meeting On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the January 19, 2011 Regular Meeting as presented. 2. Approval of Minutes of the January 31, 2011 Special Called Meeting On a motion by Gary Caplinger, seconded by Susan Bartlemay, the Board unanimously approved the Minutes of the January 31, 2011 Special Called Meeting as presented. 3. Consideration of Incentives to Sunport the Retention and Exoansion of WHAM! Inc Robert Winningham introduced Matthew Shoemake and Nadeem Ahmed, founders of WHAM! Inc. Shoemake explained that he has worked and lived in Allen for many years and has had a long relationship with the AEDC. Shoemake noted that Mr. Ahmed and he were both involved in the formation of W iQuest Communications, growing the company to 120 employees in Allen. Shoemake noted that he approached the AEDC Board in 2008 regarding his newly formed company, WHAM! Inc. to request incentives to support the company's initial growth in Allen. With the help of a $50,000 grant approved by the AEDC in October of 2008, WHAM! AEDC Meeting Minutes Februam 16. 2011 - Page 2 was able to locate into 1,500 -square feet at One Allen Center. Shoemake noted that they kept costs and employment low during the first several years of the company's existence in order to remain solvent in the initial research and development phases of their product. The company has secured $1 million in funding from the Texas Emerging Technology Fund (ETF) through the Governor's Office and $3 million in recently approved venture capital financing from Palomar Ventures in California. Shoemake thanked Winningham for supporting WHAM! in its pursuit of venture capital financing by serving as a positive reference for the company. Shoemake's business plan calls for WHAM! to grow from six employees to fifty employees with an average wage of $120,000 over the next three years. The company also plans to begin production in 2011, initially distributing its product through online retailers such as Amazon.com. Shoemake also anticipates requiring additional office lease space by 2014 and would prefer that the company remain in Allen in the future. Convene into Closed Executive Session The Board convened into closed executive session at 6:40 p.m. to deliberate real property, commercial and financial information and economic incentives for the Consideration of Incentives to Support the Retention and Expansion of WHAM! Inc. IReconvene into Open Session: The Board reconvened into regular session at 8:15 p.m. 4. Actions Resulting from Executive Session No action was taken. 5. Discussion of Allen Indeuendent School District Career & Technology Center and other Educational Challenges The Board tabled this item to be revisited at a later date. 6. Aooroval of AEDC Financial Reoorts Dan Bowman presented the AEDC financial reports. Bowman noted that the AEDC recently made an incentive grant payment to Cisco Systems. It is anticipated that the AEDC will make incentive grant payments to the Halo Group, Virtual Surveillance, Photronics. Experian and Turrentine-Jackson-Morrow in the near future. Bowman noted that the AEDC has pending grants for Mustang Technology and Project Pavilion that must be formally approved before they can be paid. Bowman also noted that sales tax revenues increased 15% from the previous year. AFDC Meeting Minutes Febnan 16, 2011 - Page 3 Robert Winningham noted that AFDC Staff plans to visit with Kevin Hammeke to discuss the reserve fund that the AFDC must have in order to maintain its bond rating. 9 On a motion by Carl Clemencich, seconded by Scott Sutherland, the Board unanimously approved the AEDC Financial Reports as presented. 7 Discuss Administrative and Marketing Activities of the AEDC and Upcoming Local Events Robert Winningham updated the Board on the administrative and marketing activities of the AFDC and upcoming local events. Winningham noted that a developer from Beijing will be visiting the AEDC on Monday, February 21" to discuss investment and development options in Allen. Winningham also noted that a data center group will be meeting with the AEDC on February 17". The Cisco Systems project has brought much attention and interest to Allen from the data center industry Winningham noted that the Dallas Business Journal's Heavy Hitters event will be held on April 281" at a site to be determined. Winningham also mentioned that the AEDC has submitted Cabela's, Andrews Distribution and The Village at Allen as candidates for the Best Real Estate Deals Awards, which will be presented by the Dallas Business Journal on February 24ih at the Adolphus Hotel. Winningham stated that the Watchguard Video Open House will be held on March 3rd, the Dinner with Neil McCoy will be held on Friday, March 11'", and the grand opening for Cabela's will be held on April 14'h The Board has been placed on the VIP list for the Cabela's event. 8. AEDC Executive Director's Report Regarding Office, Industrial. Data Center, Retail Projects, and Local Partnerships Dan Bowman mentioned that Project Red, a 450 -person call center, has identified Allen as a finalist location. The company has selected 505 Millennium, the Sage Telecom Building and Cornerstone Crossing as possible facilities for the new operation. Bowman noted that Okmetic is considering an expansion in Allen, as well as the possibility of donating a tract of land to the AEDC in exchange for tax benefits. Robert Winningham noted that the AEDC recently paid its annual dues to the Allen Chamber of Commerce. 9 Determine Next Meeting Date The next AEDC Board meeting was scheduled for Wednesday, March 16, 2011 at .i 6:00 p.m. AFDC Meeting Minutes Februan16. 2011 - Page J 10. Adioum The meeting was officially adjourned on a motion by Susan Bartlemay, seconded by Carl Clemencich, at 8:33 p m. These Minutes approved this 16ih day of March 2011. Y Tim Wood, President Carl Clemencich, Secretary/Treasurer I 0