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HomeMy WebLinkAboutMin - Economic Development Corporation - 2012 - 08/15 - RegularI ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, AUGUST 15, 2012 Board Staff Guests Tim Wood Harry Whalen Peter Vargas Susan Bartlemay Dan Bowman Lee Battle Scott Sutherland - Absent John Scriven Joey Herald Gary Caplinger Pete Smith Jeffrey Rasco Debbie Stout Paul Williams Lyall Newby Joe Lundgren Larry Holley Call to Order and Announce a Ouomm Present With a quomm 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 6:03 p.m. on Wednesday. August 15, 2012 at the AEDC Office. 1. Approval of the Minutes of the July 18, 2012 Regular Meeting On a motion by Debbie Stout, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the July 18, 2012 Regular Meeting as presented. 2 Approval of Economic Development Agreement with Andrews Distributing Company of North Texas LLC AEDC staff updated the Board on incentive negotiations with Andrews Distributing Company. The company originally purchased land in Allen in 2007 and at that time had visited with AEDC staff about a 40 -percent tax abatement for 10 years on their real property Company officials have requested that the AEDC provide a grant that is equivalent to this 40 -percent tax abatement. Staff has proposed a grant from the AEDC that would provide Andrews Distributing the equivalent of a 40 -percent tax abatement for 10 years The appraised value of the Andrews facility was certified by the Collin County Central Appraisal District in July of 2012. Based on the certified assessed value of the Andrews Distributing building, an annual grant of $47,138 from the AEDC would provide Andrews the equivalent of the requested tax abatement. On a motion by Susan Bartlemay, seconded by Debbie Stout, the Board unanimously approved the Economic Development Agreement with Andrews Distributing Company of North Texas, LLC to provide an annual grant not to exceed $47,138 for a period of 10 years. AFDC Meeting Minutes August 15, 2012 - Page 2 3. Approval of Economic Development Agreement with Standex International Corporation AEDC staff updated the Board on this project and presented the negotiated Economic Development Agreement with Standex International Corporation. This agreement would provide an incentive grant to assist Standex in locating a divisional headquarters to Allen. The company would relocate staff to Allen from locations in both Dallas and Wyoming. Standex plans to employ 40 individuals initially and grow the headcount to 63 by the third year. The average annual salary at the facility would be $60,000. On a motion by Gary Caplinger, seconded by Susan Bartlemay, the Board unanimously approved the Economic Development Agreement with Standex International Corporation as presented. 4. 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 for the Recruitment of Project Refinance Reconvene into Open Session: The Board reconvened into regular session at 6:55 p in. 5. Actions Resulting from Executive Session No actions were taken. 6. Approval of the AEDC Financial Reports Harry Whalen and Dan Bowman presented the AEDC Financial Reports. Bowman indicated that the AEDC could potentially pay two incentive grant installments to Cisco Systems in the coming months. Each grant installment would be in the amount of $1.1 million for a total grant of $2.2 million. Cisco has not applied for the grant installment from 2011 and it appears there may be a compliance issue related to the terms of their Economic Development Agreement. Jones Lang LaSalle is managing compliance on behalf of Cisco. Other incentive grants due in September include $100,000 to KONE and $262,500 to PFSweb. In September, the AEDC will be paying for the first half of the acceleration lane located between Cabela's and Stacy Road in the amount of $397,500. Sales tax receipts were slightly lower than originally projected this month due in part to retailers waiting to submit their sales tax receipts until the end of the quarter. On a motion by Debbie Stout, seconded by Susan Bartlemay, the Board unanimously approved the AEDC Financial Reports as presented. AFDC Meeting Minate� August 15, 2012 - Page 3 7 Discussion of AEDC Board Member Ouahfications Harry Whalen and Tim Wood asked Board members for feedback on qualifications for AEDC Board members. Whalen indicated that the current AEDC Board members have a good combination of skill sets. The Board members comprise a cross-section of experience including corporate and small business, the medical field, and entrepreneurs. Susan Bartlemay stated the Board is well represented in terms of age, number of years residing in the city, and commitment to future economic development in Allen. Tim Wood would welcome any feedback from Board members in the future. 8. AEDC Report Regarding Administrative and Marketing Activities of the AEDC, Upcoming Local Events, Office, Industrial, Data Center, Retail, and Business Retention Projects Harry Whalen and Daniel Bowman updated the Board on office, industrial and retail projects. AEDC staff continues to evaluate Experian's expansion plans in Allen. Staff recently met with No Magic on multiple occasions to discuss the company's merger with two other companies, as well as their proposed data center projects. A medical company is considering relocating to Millennium Technology Park in Allen Discussions are still ongoing with Triad Partners regarding a master planned development on AEDC-owned acreage. The contract with a developer for pre -development services related to the AEDC-owned property south of 700 Central Expressway is being reviewed by the City Attorney AEDC staff will have a booth at the NTCAR Expo in Dallas on August 291b in order to market Allen to local commercial real estate brokers and developers. Forbes Magazine will be highlighting the State of Texas in an upcoming issue and the AEDC will run an advertisement in that issue. Whalen shared information about several prospects from Michigan that are considering Allen. One company manufactures composite fiber cables for constmetion projects, another is a medical company working on a gene therapy treatment for the blind, and a third company makes glue patches used during surgery. Bowman recently attended a data center conference in Washington, DC. Whalen participated in the Southern Economic Development Council Conference in South Carolina. Whalen plans on inviting site consultants to the Texas Stampede event in November AEDC staff met with Frontier Communications and learned that the company's Board of Directors were thrilled with the support from the City of Allen during their recent board meeting. Whalen mentioned that AEDC staff will utilize two online property database programs, CoStar and Xceligent, since they both have benefits The company that provides the interactive aerial map that is displayed on the AEDC website is going out of business at the end of September. AEDC staff is working with the City of Allen IT Department to migrate the program to city servers Whalen presented AEDC accomplishments and goals at the City Council Workshop meeting on August 14" Lee Battle has been assisting the AEDC in creating a new aerial map of Allen. AFDC Meeting Minutes August 15. 2012 - Page 4 9 Determine Next Meeting Date — September 19, 2012 The next AEDC Board meeting is scheduled for Wednesday, September 19, 2012 at 6:00 p.m. 10. Adiournment On a motion by Debbie Stout, seconded by Gary Caplinger, the meeting was adjourned at 7:19 p.m. These Minutes approved this 19ih day of September 2012. Tim Wood, President I A Scott Sutherland, Secretaryfrreasurer