HomeMy WebLinkAboutMin - Economic Development Corporation - 2012 - 02/15 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, FEBRUARY 15, 2012
Board
Staff
Guests
Tim Wood - Absent
Daniel Bowman
Peter Vargas
Susan Bartlemay
Ryan Shook
Lee Battle
Carl Clemencich
Garrett Weaver
John Baumgartner
Gary Caplinger
Pete Smith
Kevin Hammeke
Scott Sutherland
John Scriven
Call to Order and Announce a Ouorum Present
With a quorum of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by Vice President Susan Bartlemay at 6:00 p m. on
Wednesday, February 15, 2012 at the AEDC Office.
1. Approval of the Minutes of the January 18, 2012 Regular Meeting
On a motion by Scott Sutherland, seconded by Gary Caplinger, the Board unanimously approved
the Minutes of the January 18, 2012 Regular Meeting as presented.
2. Convene into Closed Executive Session
The Board convened into closed executive session at 6:05 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 Rocket
Reconvene into Open Session:
The Board reconvened into regular session at 6:24 p.m.
3. Actions Resulting from Executive Session
On a motion by Scott Sutherland, seconded by Gary Caplinger, the Board unanimously approved
authorizing the Interim Executive Director to negotiate and execute an Economic Development
Agreement with Statlab.
AFDC Meeting Mantles
Febrnan 15, 2012 - Page 2
4. Approval of the AFDC Financial Reports
Daniel Bowman presented the AEDC financial reports. Bowman noted that the AFDC Cash
Flow Analysis includes a transfer of $541,654 from the AEDC debt service fund into the AEDC
operating fund. Bowman indicated that the remaining bond funds from the EDC Series 2010B
Bonds would be used to pay the FY 2012 annual debt service payment for the AEDC bonds.
Bowman noted that the AEDC plans to make grant payments to Experian and State Farm in the
coming month. Bowman stated that Zynga, formerly known as Project Pavilion, recently
executed a lease to occupy 17,000 -square feet in the Xtera Building. Zynga chose not to pursue
the incentive grant that was previously offered by the AEDC
Bowman mentioned that sales tax revenues are 11.25 -percent higher than the amount budgeted
for the current month and 11.28 -percent above the revenues received for the same month during
the previous fiscal year.
On a motion by Gary Caplinger, seconded by Scott Sutherland, the Board unanimously approved
the AFDC Financial Reports as presented.
5 Consider Authorizing Transfer of the Surplus Bond Proceeds from the EDC Series 2010B
Bonds to the EDC Bond Fund Pursuant to the Bond Resolution
Daniel Bowman requested that the Board consider authorizing the transfer of surplus bond
proceeds from the EDC Series 2010B Bonds to the EDC Bond Fund pursuant to the Bond
Resolution. Bowman noted that Cabela's provided an official letter stating that the company will
not be submitting additional requests for reimbursement from the EDC Series 2010B Bonds.
Bowman stated that the EDC Series 2010B Bonds have an available balance of $1,471,411.
Bowman indicated that the AEDC bond attorney has recommended that the surplus proceeds and
interest be credited to the EDC Bond Fund to be used for the FY 2012 debt service payment.
The EDC Bond Fund currently has a balance of $666,371, which would increase to a total of
$2,137,782 if the remaining $1,471,411 balance is transferred into the account. These funds
could then be used to pay the annual AEDC debt service payment of $1,596,128 for FY 2012.
Kevin Hammeke stated that the AEDC is contractually obligated to use surplus bond funds to
pay off the existing bond debt service. He noted that this will increase the available funds in the
AEDC operating budget.
On a motion by Carl Clemencich, seconded by Gary Caplinger, the Board unanimously approved
authorizing the transfer of the surplus bond proceeds from the EDC Series 2010B Bonds to the
EDC Bond Fund pursuant to the Bond Resolution.
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AFDC Meeting Minutes
February /5, 20/2 - Page 3
6. Consider Providing an Economic Development Grant to the Citv of Allen to Fund
Construction of an Acceleration Lane to Mitigate Traffic Congestion on Cabela Drive and
Improve Ingress and Egress to the Cabela s Retail Store and Authorize the Interim Executive
Director to Execute an Agreement on Behalf of the AEDC
John Baumgartner, Director of Engineering for the City of Allen, appeared before the Board to
request an economic development grant to fund construction of an acceleration lane to mitigate
traffic congestion on Cabela Drive Baumgartner noted that the City of Allen has been working
to determine solutions for relieving traffic congestion generated by recent commercial
development on Andrews Parkway, Cabela Drive, the US 75 frontage road and Stacy Road.
Baumgartner stated that after reviewing various options, City staff determined that the most
effective means of relieving traffic congestion would be the construction of an acceleration lane
on the US 75 frontage road from Cabela Drive to Stacy Road. Baumgartner requested that the
AEDC Board consider approval of a $795,000 grant to fund construction of the acceleration lane.
Baumgartner noted that the City of Allen would pay for the design of the acceleration lane at a
cost of $52,800.
Daniel Bowman mentioned that this request would utilize the funds in the operating budget that
were previously allocated to pay the monthly AEDC bond debt service. Scott Sutherland
inquired if the acceleration lane would be a temporary solution to the congestion problems
generated by the rapid increase in retail traffic. Baumgartner stated that City staff is aware of the
congestion problems and will address these concerns through incremental changes to the
roadway infrastructure. Bowman stated that AEDC staff recommends approval of an economic
development grant to fund the construction of an acceleration lane.
On a motion by Carl Clemencich, seconded by Scott Sutherland, the Board unanimously
approved an economic development grant to be provided to the City of Allen to fund
construction of an acceleration lane to mitigate traffic congestion on Cabela Drive and improve
ingress and egress to the Cabela s retail store. The Board also authorized the Interim Executive
Director to execute an agreement on behalf of the AEDC.
7 Discussion of Development Scenarios for the AEDC-Owned 18.5 -Acre Tract in Millennium
Technology Park
Daniel Bowman updated the Board on development scenarios for the AEDC-owned 18.5 -acre
tract in Millennium Technology Park. Bowman noted that the 18.5 -acre parcel was originally
part of a 92 -acre tract that was purchased by the AEDC in the early 1990s for $1,270,000. Since
that time, the AEDC sold approximately 55 acres to support the development of six office and
office/warehouse facilities, dedicated approximately 15 acres for detention ponds and road right-
of-way, and retained approximately 23 acres for future development.
Bowman presented the historical projects recruited by the AEDC to Millennium Technology
Park and the payback period used by the AEDC Board when evaluating these projects, based on
original capital investment and job creation projections.
AFDC Meeting Minutes
February 15, 2012 - Page d
Bowman indicated that in January of 2012, AEDC staff learned that the cost of
relocating/undergroundmg the electrical infrastructure located on the 18.5 -acre parcel would be
approximately $2.5 million. Bowman also mentioned that commercial development in Allen
over the past five years has had a significant impact on land prices, increasing the estimated
value of the 18.5 -acre tract to a possible price of $6-8 per square foot.
Bowman presented four possible development scenarios for the 18 -acre parcel, indicating the
estimated payback period for each hypothetical project based on job creation, capital investment,
infrastructure costs and incentives. Peter Vargas mentioned alternate uses that have been
discussed recently for the AEDC land in Millennium Technology Park.
The general consensus of the Board was for staff to pursue technology manufacturing projects
and office projects that utilize the 12 -acre portion of the tract fronting on US 75.
8. Executive Director's Report Regarding Administrative and Marketing Activities of the
AEDC, Upcoming Local Events, Office, Industrial Data Center, Retail, and Business
Retention Proiects
Daniel Bowman updated the Board on office, industrial and retail projects. Bowman noted that
Dongbu HiTek, a Korean software company with approximately 45 employees, has received an
incentive offer from the McKinney Economic Development Corporation and is strongly
considering relocating in McKinney The company's CEO resides in McKinney Bowman
mentioned that Sedgwick has chosen to locate its office project close to the Dallas North
Tollway and is no longer considering Allen.
Bowman presented the recently completed AEDC Demographics Book and AEDC Aerial Map,
both of which staff will be using for marketing purposes in the coming year. Bowman
mentioned that NTCAR will be giving a bus tour of local office buildings to brokers in March.
Staff is coordinating with NTCAR to add Allen to the list of cities on the bus tour.
Bowman noted that he recently wrote an article in the Neighbor's Go section of the Dallas
Morning News, which provided positive media attention for the AEDC and the City of Allen.
Bowman also noted that an AEDC Broker Event will be held at the Allen Event Center on
March 9" Bowman mentioned that both PFSweb and Greenling will hold ribbon cutting events
in the near future
9 Determine Next Meeting Date
The next AEDC Board meeting was scheduled for Wednesday, March 21, 2012 at 6:00 p.m.
10. Convene into Closed Executive Session
The Board convened into Closed Executive Session at 7.43 p.m. to discuss the employment of
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the AEDC Executive Director.
AFDC Meeting Minutes
Februan 15, 2012 - Page 5
Reconvene into Open Session:
The Board convened into regular session at 7:58 p.m.
11. Actions Resultine from Executive Session
No actions were taken.
12. Adjournment
On a motion by Carl Clemencich, seconded by Gary Caplinger, the meeting was adjourned at
7:59 p.m.
These Minutes approved this 21" day of March 2012.
Tim CWood, President
I
Secretaryfrreasurer