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HomeMy WebLinkAboutMin - Economic Development Corporation - 2012 - 06/20 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, JUNE 20, 2012 Board Tim Wood Susan Bartlemay Scott Sutherland Gary Caplinger Debbie Stout Staff Harry Whalen Daniel Bowman John Scnven Joe Gorda, Jr Call to Order and Announce a Ouomm Present Guests Peter Vargas Bo Bass Kevin Hammeke Joey Herald Tameka Loewecke Tommy Baril Larry Holley Ben Trahan With a quorum of the Board present, the Regular Meeting of the Allen Economic Development Corporation (AEDC) Board of Directors was called to order by President Tim Wood at 6.00 p.m. on Wednesday, June 20, 2012 at the AEDC Office. 1. Approval of the Minutes of the May 16, 2012 Regular Meeting On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the May l6, 2012 Regular Meeting as presented. 2. Convene into Closed Executive Session: Pursuant to Texas Government Code Section 551.087: Deliberation of Economic Development Negotiations: To Deliberate Commercial and Financial Information and Economic Incentives for the Following a. Consider Incentives to Support the Recruitment of Project Chef Reconvene into Open Session: The Board reconvened into regular session at 6:08 p.m 3. Actions Resulting from Executive Session On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved authorizing the AEDC Executive Director to negotiate and execute an economic development agreement with Standex International. AFDC Meeting Minutes June 20, 2012 - Page 2 4. Approval of the AEDC Financial Reports Dan Bowman presented the AEDC Financial Reports. Bowman stated that Experian is moving forward with expansion plans at their current location and has engaged a real estate firm to assist them with this effort. PFSweb is expected to seek their first grant payment of $262,500 in July Bowman pointed out that AEDC sales tax receipts for the current month are slightly below budget by four percent. Kevin Hammeke noted that this is only an estimate because the city has not received an updated report from state agencies. In addition, it was noted by Hammeke that this same month last year was the first month to reflect increased sales tax receipts due to the opening of the new Cabela's store. On a motion by Susan Bartlemay, seconded by Scott Sutherland, the Board unanimously approved the AEDC Financial Reports as presented. 5. Consider Approval of the Allen Economic Development Corporation Budeet for Fiscal Year 2013 and Adjustments for Fiscal Year 2012 Harry Whalen and Daniel Bowman presented the proposed AFDC Budget that includes both adjustments to the budget for the current fiscal year (FY 2012) and projections for the upcoming fiscal year (FY 2013). The AEDC Fiscal Year runs from October through September. Bowman stated that the budget for Office Supplies and Professional Services expenses had been adjusted. The Office Supplies Budget was increased due to the purchase of iPads for Board Members and the Professional Services Budget was adjusted for services provided by the AEDC Attorney Susan Bartlemay requested clarification on the status of the marketing contract with consultant Linda Burns. Harry Whalen commented that the agreement with Bums would be renegotiated. Whalen has scheduled a meeting with Burns for the end of July. Currently, the AEDC Office is paying Burns $1,000 per month for her consulting services, which falls under the Marketing Budget. Burns provides the AEDC with site consultant meetings, coordinates marketing events such as the Texas Stampede, prepares nominations for various awards, and completes various other tasks from time to time. Susan Bartlemay inquired about what js included in the budget amount that is paid by the AEDC to the City of Allen for Administrative Services. Peter Vargas said it includes Administration, IT, Professional and Human Resource Services, Accounts Payable. Engineering, and Project Management. In response to Susan Bartlemay's question about expenses related to the AEDC Holiday Event, Bowman mentioned that these expenses are included in the Marketing Budget. Gary Caplinger wanted to know if all staff members receive a mileage reimbursement. Harry Whalen said he receives a car allowance, but all other staff receive this reimbursement. I AFDC Meeting Mmutec June 20. 2012 - Page 3 Debbie Stout inquired about which staff members are eligible for overtime. Harry Whalen stated Tracey Cline and John Scriven receive overtime pay and these expenses have been higher than normal because the office was recently short staffed. According to Kevin Hammeke, the budget for overtime was projected based on numbers from 2011. Clarification of the difference between Travel and Meeting expenses was requested by Debbie Stout. Bowman indicated that Meetings involve activities such as bus tours, luncheons, and meetings in the DFW area with local brokers and developers, while Travel involves conferences and site consultant meetings outside the Metroplex. Concerning the operating expenses of the AEDC, Scott Sutherland was interested in comparing the AEDC Budget with other similar EDC's. Bowman is aware of an annual publication that is prepared by the Comptroller's office that provides this information. Further, Bowman stated that the AEDC Marketing Budget can legally be ten percent of the total annual budget. On a motion by Scott Sutherland, seconded by Debbie Stout, the Board unanimously approved the AEDC Financial Reports as presented. 6. Presentation and Discussion of Preliminary AEDC Marketing Plan Harry Whalen presented an outline of the AEDC Marketing Plan. Whalen reviewed six key areas of focus on which the AEDC will concentrate in the coming years. These key areas are National and International Business Attraction, Prospect Recruitment in IT, Medical Device, and Medical Products Sectors, Business Retention and Expansion, Site Development Strategy Identification, Collaboration with Economic Development Allies for New Business Development, and Enhancement of AEDC Operations. The AEDC will proactively pursue applicable trade shows and conferences, advertising in key magazines, calls and/or visits to businesses in Allen, meetings with local and state officials and local college presidents, and AEDC staff training. Whalen stated that each marketing activity will be evaluated prior to spending any marketing dollars. In addition, the results of activities and events in which AEDC Staff participates will be measured and reported. Susan Bartlemay does not recommend attracting businesses to Allen from other cities in the DFW metroplex. Peter Vargas suggested the AEDC pay attention to legislative actions and changes to the criteria for how state funds are administered. Vargas believes that Allen needs to draw more office development to the city Whalen has a strong desire to create a master development plan for State Highway 121 in order to attract corporate headquarters. Whalen plans on having the AEDC Staff prepare a marketing schedule. Whalen's vision for the future includes monthly meetings with board members and bi-annual board retreats to foster teamwork, collaboration and unity Scott Sutherland would like the AEDC to create and present a detailed marketing budget. Susan Bartlemay stated that the marketing plan should have clear goals that can be measured and evaluated based on AEDC objectives. Tim Wood commented that this is the first pass at the marketing plan and it will be discussed in more detail during the July Board Meeting. AFDC Meeting Muarte� June 20, 2012 - Page a 7 Presentation and Discussion of AEDC Staff Goals and Objectives No information was presented. 8. AEDC Report Regarding Administrative and Marketing Activities of the AEDC. Upcoming Local Events, Office, Industrial, Data Center. Retail, and Business Retention Proiects Harry Whalen and Daniel Bowman updated the Board on office, industrial and retail projects. Whalen noted that part of the AEDC Business Retention and Expansion Plan involved having Mayor Terrell send Billings Productions a letter welcoming them to the City of Allen. AEDC Staff visited with management at Pace Analytical during their open house. Pace anticipates business growth and is considering expansion at their current location. Whalen is confident that the AEDC proposal for Project Chef will result in the company relocating to Allen. AEDC Staff met with the CFO of the Halo Group and a developer to discuss an upscale development of the AEDC-owned 18.5 acres located between US 75 and Century Parkway. Bowman mentioned that the AEDC is working on four projects involving a total of 150,000-sf and the potential of 500 new employment positions. Whalen indicated that he plans to work on the development of a Master Development Plan for a corporate campus near the Howard Hughes and Peter Ng properties. The goal is for the AEDC to host a meeting with the landowners with properties on State Highway 121 to discuss plans to develop the area into a master planned corporate office park. Peter Vargas stated that with the completion of Chelsea Boulevard, the infrastructure will be in place to draw companies to this location in Allen. Susan Bartlemay emphasized that all city departments, developers, brokers, and landowners should agree on this master plan so that it will be a successful venture. Jordan Real Estate Group has met with the AEDC and presented a development plan for the AEDC-owned land at Bethany Drive and Central Park. Their plan involves a mixed use concept with retail, office, and multi -family buildings The AEDC Staff realizes this land is prime real estate in Allen and therefore will only consider Class A Office buildings as part of a master plan. Whalen stated that the occupancy rate for businesses in the Village at Allen is about 76 -percent while the Village at Fairview is only 56 -percent. Havertys Furniture Store will open a new 50,000-sf showroom later this year in the Village at Allen. The AEDC Staff met with the management of Watters Creek to discuss possible tenants for the former Borders building. The goal is to seek a single tenant for the space. 9 Determine Next Meeting Date The next AEDC Board meeting is scheduled for Wednesday, July 18, 2012 at 6:00 p.m I I I AFDC Meeting Minutes June 20, 2012 - Page 5 10. Adiournment On a motion by Susan Bartlemay, seconded by Debbie Stout, the meeting was adjourned at 7 32 p.m. These Minutes approved this 18ih day of July 2012. Tim Wood, President >J � Scott Sutherland, S�^e1c',retary/T a sure /