Loading...
HomeMy WebLinkAboutMin - Economic Development Corporation - 2011 - 10/19 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, OCTOBER 19, 2011 Board Tim Wood Susan Bartlemay Carl Clemencich Gary Caplinger Scott Sutherland Staff Daniel Bowman Ryan Shook Garrett Weaver Kevin Laughlin Call to Order and Announce a Ouorum Present Guests Peter Vargas Ross Obermeyer Kenneth Chandler Daniel Henn 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 6:07 p.m. on Wednesday, October 19, 2011 at the AEDC Office. 1 1 Approval of the Minutes of the September 21, 2011 Regular Meeting Scott Sutherland noted that on the Minutes of the September 21, 2011 Regular Meeting, related to the Annual Performance Review of the Executive Director/CEO, the phrase "to award a bonus for meeting AEDC's annual goals" was included. Sutherland indicated that the general consensus of the Board was that the annual bonus was not awarded based on specific annual AEDC goals. Dan Bowman indicated that this reference to annual goals would be stricken from the minutes. On a motion by Scott Sutherland, seconded by Susan Bartlemay, the Board unanimously approved the Minutes of the September 21, 2011 Regular Meeting with the aforementioned change. 2 Approval of the Minutes of the October 7, 2011 Special Called Meeting On a motion by Scott Sutherland, seconded by Susan Bartlemay, the Board unanimously approved the Minutes of the October 7, 2011 Special Called Meeting as presented. 1, Approval of an Economic Development Agreement with TelStrat International, Ltd Dan Bowman presented the Economic Development Agreement with TelStrat International, Ltd. for Board consideration. Bowman noted that the company has agreed to sign a 5 -year lease to occupy over 17,000-sf at the Office Campus at Allen located at Ridgemont and US AEDC Meenng Minutes October 19, 2011 - Page 2 75. The lease will commence in November of 2011. The company has committed to initially employ 34 individuals at the facility, increasing to 42 employees over a 5 -year period. Bowman noted that an Economic Development Agreement with Telstrat International Ltd. has been drafted based on direction provided by the Board at the September 21, 2011 AEDC Board Meeting. Telstrat officials have executed the Agreement. On a motion by Susan Bartlemay, seconded by Scott Sutherland, the Board unanimously approved the Economic Development Agreement with Telstrat International, Ltd as presented. 4. Approval of an Economic Development Agreement with Priority Fulfillment Services Inc. Dan Bowman presented the Economic Development Agreement with Priority Fulfillment Services, Inc. for Board consideration. The agreement calls for an incentive grant payment of $1,750 per employee. The grant is to be paid to the company in five installments over a period of five years. The company must reach a total employment level of 650 by the fifth year in order to receive the maximum benefit under the agreement. During the negotiation process, company officials had indicated a concern with the repayment clause in the agreement. In particular, the company noted that the incentive grant cannot be recorded as a revenue until the point at which the repayment clause expires. The concern was resolved based on the structure of the payment terms. The company is required to repay the first two installments of the grant if they fail to maintain their corporate headquarters and 250 employment positions in Allen for a period of 10 years. The amount of the repayment is prorated based on the number of years remaining in the agreement and the number of employees the company has in Allen at the time of default. The company will be required to repay the final three installments of the grant if they fail to maintain the employment levels associated with each grant payment for a one year period following payment of each grant. On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved the Economic Development Agreement with Priority Fulfillment Services, Inc. as presented. 5. Convene into Closed Executive Session The Board convened into closed executive session at 6:14 p.m. to deliberate real property, commercial and financial information and economic incentives for the following: • Consider Incentives for the Recruitment of Project Med-Tech • Consider Incentives for the Recruitment of Project Organic • Consider Incentives for the Recruitment of Project Appaloosa Pollma AFDC Meeting Minutes October 19, 2011 - Page 7 Reconvene into Open Session: The Board reconvened into regular session at 7, 10 p.m. 6. Actions Resulting from Executive Session On a motion by Susan Bartlemay, seconded by Scott Sutherland, the Board authorized the Interim Executive Director to negotiate an Economic Development Agreement with Project Appaloosa Pollina. The Board also authorized the Interim Executive Director to include on an upcoming Allen City Council agenda a recommendation by the AEDC Board to support a tax abatement for Project Appaloosa Pollina if the company proceeds with the project in Allen. On a motion by Susan Bartlemay, seconded by Scott Sutherland, the Board authorized the Interim Executive Director to negotiate an Economic Development Agreement with Project Organic. 7 Approval of AEDC Financial RCDOrtS Daniel Bowman presented the AEDC financial reports. Bowman noted that the AEDC made 1 payments to No Magic and Atlas Copco in September. Bowman also noted that the AEDC plans to make payments to State Farm, Photronics and Turrentine-Jackson-Morrow in the near future. Bowman mentioned that grants to Cisco Systems and KONE are projected to be paid in the upcoming month; however, AEDC staff is currently addressing compliance issues related to the respective companies. Bowman also noted that sales tax revenue for the current fiscal yea is 10 -percent greater than the budgeted amount and has shown a 20 -percent increase over the prior year. Peter Vargas mentioned that sales tax revenue collections are expected to increase in the future with the opening of Anthropologie and Pier 1 Imports. On a motion by Gary Caplinger, seconded by Susan Bartlemay, the Board unanimously approved the AEDC Financial Reports as presented. 8. Discussion of AEDC Board Particrnation in Prospect Meennes Tim Wood led the discussion with the Board regarding AEDC Board participation in prospect meetings. The general consensus of the Board was that having a Board member present at prospect meetings would be useful for prospect recruitment. Wood noted that invitations to attend prospect meetings should be extended to all Board members. The Board agreed that Board members with specific areas of professional expertise should attend meetings with prospects that fall within those areas of expertise. Susan Bartlemay noted that ample notice should be given to Board members regarding prospect meetings, in order for Board members to have adequate time to coordinate their schedules. AEDC Meeting Minutes October 19 2011 - Page 4 9 Discuss Administrative and Marketing Activities of the AEDC and Upcoming_ Local Events Daniel Bowman updated the Board on the administrative and marketing activities of the AEDC, upcoming events and local partnerships. Bowman mentioned that AEDC staff is working with a local design firm to proceed with the design and printing of the AEDC aerial map. Bowman also noted that AEDC staff was in the final stages of completing an updated demographics book to be used for marketing purposes. Bowman also noted that the AEDC is part of the Collin County Regional Marketing team, which is considering pursuing marketing opportunities through the D -CEO Real Points real estate blog. Bowman noted that AEDC staff appeared before the Allen City Council, along with Elizabeth Morris of Insight Research, to present the AEDC Impact Report. 10. AEDC Executive Director's Report Regarding Office. Industrial. and Retail Proiects Daniel Bowman updated the Board on office, industrial and retail projects. Bowman mentioned that Project Labor. This information technology firm is considering leasing significant space in the city. 11. Determine Next Meeting Date The next AEDC Board meeting was scheduled for Wednesday, November 16, 2011 at 6:00 p.m. 12. Convene into Closed Executive Session The Board convened into closed executive session at 7:30 p.m. for discussion regarding the employment of the AEDC Executive Director / CEO. Reconvene into OWn Session: The Board reconvened into regular session at 7:58 p.m. 13. Actions Resulting from Executive Session No actions were taken. 14. Adjournment EThe meeting was adjourned at 8:00 p m. AFDC Meeting Minutes October 19, 2011 - Page 5 These Minutes approved this 161, day of November 2011 d vV !.� Tim Wood, President I Hu Carl Clemencich, Secretary/Treasurer