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HomeMy WebLinkAboutMin - Economic Development Corporation - 2011 - 12/14 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, DECEMBER 14, 2011 Board Staff Guests Tim Wood Daniel Bowman Peter Vargas Susan Bartlemay Ryan Shook Bo Bass Carl Clemencich Garrett Weaver Joey Herald Gary Caplinger Pete Smith Steve Terrell Scott Sutherland Doug Hollidge Kenneth Walsh 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, December 14, 2011 at the AEDC Office. 1. Approval of the Minutes of the November 16, 2011 Regular Meeting On a motion by Gary Caplinger, seconded by Susan Bartlemay, the Board unanimously approved the Minutes of the November 16, 2011 Regular Meeting as presented. 2. Election of Officers of the AEDC Board of Directors Daniel Bowman noted that the AEDC Board of Directors elects officers on an annual basis. The three Board officer positions are President, Vice President, and Secretary/Treasurer. Bowman noted that in 2011 Tim Wood served as President. Susan Bardemay as Vice President and Carl Clemencich as Secretary/Treasurer. Gary Caplinger nominated Tim Wood. Susan Bartlemay and Carl Clemencich to be reelected to serve in their current respective positions, noting that each of them has done an excellent job in the past year. 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 of 2012. AFDC Meeting Minutes December 14, 2011 - Page 2 3. Discussion of Data Center Development in Allen Daniel Bowman introduced Doug Hollidge of Five 9's Digital and Kenneth Walsh of Jones Lang LaSalle and asked them to speak on current issues impacting data center development. Bowman stated that demand for data center space in the Dallas -Fort Worth area is anticipated to outstrip supply through 2014, creating a window of opportunity for data center development in Allen. Data center space in the Dallas -Fort Worth area is currently 97 -percent leased. Hollidge updated the Board on data center development activity Five 9's Digital is a data center development firm based in Charlotte, North Carolina that specializes in advisory and site selection for the data center industry Five 9's has been involved in major projects such as the Charlotte Gateway Project and the development of a 138,000 -square foot Tier III data center in Egan, Minnesota. Hollidge mentioned that Allen has an opportunity for future data center development based on the City's available electric and fiber resources. Kenneth Walsh with Jones Lang LaSalle updated the Board on data center activity in the Dallas - Fort Worth area, noting that Jones Lang LaSalle has a Dallas mission critical brokerage team that specializes in data center activity in the region. Walsh noted that Allen has a significant advantage for future data center development as a result of the utilities put in place to support the Cisco Data Center. Walsh also mentioned that Five 9's is looking to develop a shell data center facility in the Dallas -Fort Worth area that provides flexibility for potential tenants. Daniel Bowman stated that the AEDC and Five 9's have been working to put together a development plan for land designated for data center development in Allen. Bowman indicated that a development plan is a missing component from Allen's current data center recruitment efforts. 4. Convene into Closed Executive Session The Board convened into closed executive session at 6:25 p.m. to deliberate real property, commercial and financial information and economic incentives for the following: • Consider Incentives for the Recruitment of Project Legal • General Discussion of Plans for Allen Central Park • Consider Incentives for the Recruitment of Project Onshore Reconvene into Open Session: The Board convened into regular session at 7:05 p.m. 5. Actions Resulting from Executive Session No actions were taken. AFDC Meeting Minutes Decemberl4,2011- Page3 6. Approval of AEDC Financial Reports Daniel Bowman presented the AFDC financial reports. Susan Bardemay inquired about the the budget for temporary salaries and consulting services. Bowman mentioned that the temporary salary budget has been adjusted to accommodate the current staffing situation at the AEDC. Bowman mentioned that consulting fees to Linda Bums are paid out of the marketing budget, which was an arrangement established by the former executive director. Bowman stated that Project Pavilion will likely execute a lease in Allen by the end of 2011. Bowman also stated that the AFDC plans to make payments to KONE, Frontier Communications and Telstrat in the upcoming month. Gary Caplinger inquired if the Frontier Communications ribbon cutting ceremony coincided with the ribbon cutting for the new Allen fire station. Bowman stated that he will look into the scheduling of both events. Bowman mentioned that sales tax revenues are 12 -percent higher than anticipated for the current fiscal year. Tim Wood inquired about the total AFDC operational budget in 2011. Bowman noted that the total budget was approximately $6.8 million. On a motion by Carl Clemencich, seconded by Gary Caplinger, the Board unanimously approved the AEDC Financial Reports as presented. 7 Discussion of Customized AEDC Impact Model Daniel Bowman requested additional Board feedback on the AFDC Impact Model that was developed by AEDC staff and Impact Data Source. Bowman noted that there are two separate summaries in the impact report that each provide a breakdown of the impact values according to taxing entity. Bowman indicated that items in the report can be customized at the request of the Board. Scott Sutherland noted that the changes made to the impact model have added clarity to the analysis. Carl Clemencich inquired about the product license cost of the impact model. Bowman agreed to provide a detailed breakdown of the cost. 8. 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 the AFDC Holiday Open House was a successful event and was well attended. Bowman mentioned that the keynote speaker at the TexasOne Board Meeting, Mark Arend of Site Selection Magazine, mentioned his positive experience in Allen during a speech to state economic development officials. Bowman indicated that this was excellent press for the AEDC. H H 1 AFDC Meeting Minutes December 14, 2011 - Page 4 9 AEDC Executive Director's Report Regarding Office Industrial and Retail Projects Daniel Bowman updated the Board on office, industrial and retail projects. Bowman mentioned that Project Rocket, a 20,000 -30,000 -square foot prospect, has identified 915 Enterprise and Allen Station Business Park as possible locations for their project. Bowman noted that PFSweb recently announced the relocation of their corporate headquarters to 505 Millennium Drive. Bowman also noted that Cisco representatives spoke highly of Allen and the AEDC during a recent tour of the Cisco facility 10. Determine Next Meeting Date The next AEDC Board meeting was scheduled for Wednesday, January 18, 2012 at 6:00 p.m. 11. Convene into Closed Executive Session The Board convened into Closed Executive Session at 7:30 p.m. to discuss matter regarding the employment of the AEDC Executive Director. Reconvene into Open Session - The Board convened into regular session at 7:40 p.m. 12. Actions Resulting from Executive Session No actions were taken. 13. Adioumment On a motion by Carl Clemencich, seconded by Gary Caplinger, the meeting was adjourned at 7 41 p.m. These Minutes approved this 18 is day of January 2012. UL Tim Wood, President Carl Clemencich, Secretaryt i reasurer