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Home My WebLink AboutMin - Economic Development Corporation - 2012 - 09/19 - RegularCall to Order and Announce a Quorum Present 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 6:05 p.m. on Wednesday, September 19, 2012 at the AEDC Office. �! 1 Approval of the Minutes of the August 15, 2012 Regular Board Meeting ® On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the August 15, 2012 Regular Meeting as presented 2. Consider and Take Action on a Recommendation to the Allen City Council for Approval of the City of Allen Tax Abatement Policy Dan Bowman indicated that every two years the Allen City Council is required to review and approve the City of Allen Tax Abatement Policy The policy that is currently used originated in 1992 and was slightly revised in 2008. The policy states that a project with capital investment expenses between $5 million and $100 million are eligible for a 40 -percent, 5 -year tax abatement. For those projects that have a capital investment over $100 million, the tax abatement can be 50 -percent for a period of 10 years. These guidelines allow the City to go beyond the recommended amounts on a case-by-case basis. On a motion by Debbie Stout, seconded by Gary Caplinger, the Board unanimously approved a recommendation to the Allen City Council for approval of the City of Allen Tax Abatement Policy as presented. 3. Consider Approval of Incentive Payment to LIT Finance, LP The AEDC Board discussed the payment of an incentive grant to LIT Finance related to expenses incurred to attract and retain State Farm Insurance. The State Farm location in Allen is a disaster recovery center. ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, SEPTEMBER 19, 2012 Board Staff Guests Tim Wood Harry Whalen Peter Vargas Susan Bartlemay Dan Bowman Bo Bass Scott Sutherland Tracey Cline Joey Herald Gary Caplinger John Scriven Tom Potts Debbie Stout Kevin Laughlin Larry Holley Jan Elwell Call to Order and Announce a Quorum Present 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 6:05 p.m. on Wednesday, September 19, 2012 at the AEDC Office. �! 1 Approval of the Minutes of the August 15, 2012 Regular Board Meeting ® On a motion by Susan Bartlemay, seconded by Gary Caplinger, the Board unanimously approved the Minutes of the August 15, 2012 Regular Meeting as presented 2. Consider and Take Action on a Recommendation to the Allen City Council for Approval of the City of Allen Tax Abatement Policy Dan Bowman indicated that every two years the Allen City Council is required to review and approve the City of Allen Tax Abatement Policy The policy that is currently used originated in 1992 and was slightly revised in 2008. The policy states that a project with capital investment expenses between $5 million and $100 million are eligible for a 40 -percent, 5 -year tax abatement. For those projects that have a capital investment over $100 million, the tax abatement can be 50 -percent for a period of 10 years. These guidelines allow the City to go beyond the recommended amounts on a case-by-case basis. On a motion by Debbie Stout, seconded by Gary Caplinger, the Board unanimously approved a recommendation to the Allen City Council for approval of the City of Allen Tax Abatement Policy as presented. 3. Consider Approval of Incentive Payment to LIT Finance, LP The AEDC Board discussed the payment of an incentive grant to LIT Finance related to expenses incurred to attract and retain State Farm Insurance. The State Farm location in Allen is a disaster recovery center. AFDC Meeting Minutes September l9, 202 - Page 2 �A The Economic Development Agreement was signed with the landlord, LIT Finance LP Based ® on the requirements of the agreement, all components have been met with the exception of the initial employment requirement. The company was deficient on the initial employment requirement by only a small margin. AEDC staff recommends approval of the first and second installments of the incentive grant in the amount of $150.000. On a motion by Susan Bartlemay, seconded by Debbie Stout, the Board unanimously approved the payment of the incentive grant provided in the Economic Development Agreement with LIT Finance, LP 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. Discuss AEDC Projects Considering Locations on or Near US 75 and SH 121 Reconvene into Open Session: The Board reconvened into regular session at 6:35 p.m. 1 5. Actions Resulting from Executive Session No actions were taken. 6. Approval of the AEDC Financial Reports Harry Whalen and Dan Bowman presented the financial reports. Dan Bowman noted that with two weeks left in Fiscal Year 2012, 78 -percent of the marketing budget has been expended. The AEDC will be using Forbes magazine to run a marketing ad at a cost of $37,000. The AEDC fund balance is currently at approximately $2.9 million with $2.2 million in current grant payments designated for Cisco. If Cisco doesn't meet the requirements of their Economic Development Agreement, the fund balance will jump to more than $5 million. Additional incentive grants coming due include the Cabela's grant, PFSweb grant, State Farm (LIT Finance) grant and the Turrentine-Jackson grant. Current monthly sales tax receipts for AEDC are up 15 -percent over the budgeted amount and are 13 -percent higher than the previous year. Peter Vargas indicated that a very robust economy has caused both the AEDC and ACDC sales tax receipts to increase. On a motion by Debbie Stout, seconded by Susan Bartlemay, the Board unanimously approved the AEDC Financial Reports as presented. AEDC Meenng Minutes September 19, 20/2 - Page 3 7 Discussion of AEDC Staff Goals and Objectives Hairy Whalen provided an update to the AEDC Program of Work and provided a handout. The revised Program of Work includes measurable objectives for Fiscal Year 2013. Whalen reviewed six key objectives on which AEDC staff will focus throughout the coming year. AEDC Staff recently participated in the annual NTCAR Expo in Dallas, a networking event at the Hall & Oates concert, a tour of the Collin College campus in Frisco, a D -CEO neworking event, and master plan discussions regarding acreage located at US 75 and SH 121. 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 Dan Bowman updated the Board on office, industrial, and retail projects. Whalen indicated that the Halo Group is considering expanding in Allen. AEDC Staff is still considering options for several build -to -suit office projects on the AEDC-owned 18.5 acre tract located east of US 75. Greg Nelson with Triad Partners notified AEDC staff that a mortgage company may be considering a location in Allen. A seafood restaurant has been talking with AEDC and City of Allen Planning and Engineering departments about budding a restaurant on a 6 -acre site located along US 75 south of Allen Drive. AEDC Staff has met with company officials who want to establish a call center in Allen and need about 30,000 -square feet to employ 200-300 workers. A manufacturing company is considering Allen as a possible location for a 150 -employee headquarters operation. KONE has an interest in building a 110 -foot elevator test tower in either Allen or McKinney. A prospect in the healthcare field is considering Allen and could create 100 new positions. Allen is in the running for Project Azalea, a high tech manufacturing project requiring 150-225 acres of land for a build -to -suit. The Howard Hughes property along US 75 and SH 121 is the primary site that has been proposed by the AEDC This potential client has a large daily water requirement. Peter Vargas commented that the client would need to contract directly with the North Texas Municipal Water District concerning their water consumption. This project could result in a multi -billion dollar investment and employ over 1,000 employees. 9 Determine Next Meeting Date — October 17, 2012 The next AEDC Board meeting is scheduled for Wednesday, October 17, 2012 at 6:00 p.m. 10. Adioumment On a motion by Debbie Stout, seconded by Gary Caplinger, the meeting was adjourned at 7,11 p.m. AFDC Meeting Minutes September 19, 2012 - Page 4 These Minutes approved this 17" day of October 2012. W�aod:-Prt�sit,ertt- San —5,q' U76e - pres;den't I �I Scott Sutherland, Secretary/Treasurer