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HomeMy WebLinkAboutMin - Economic Development Corporation - 2012 - 10/17 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, OCTOBER 17, 2012 Board Staff Guests Susan Bartlemay Harry Whalen Peter Vargas Scott Sutherland Dan Bowman Bo Bass Joey Herald Tracey Cline Kent Smith Greg Kennedy John Scriven Brandon Kirkham Michael Schaeffer Pete Smith Lee Wagner Christian O'Connor Cribb Altman Bill Carroll Lee Kleinman Reyner Natahamidjaja Lusy Natahamidjaja Call to Order and Announce a Quorum 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 Vice-president Susan Bartlemay at 6:03 p.m. on Wednesday, October 17, 2012 at the AEDC Office, 1. Approval of the Minutes of the September 19, 2012 Regular Board Meeting On a motion by Greg Kennedy, seconded by Scott Sutherland, the Board unanimously approved the Minutes of the September 19, 2012 Regular Meeting as presented. 2. Election of Officers of the Allen Economic Development Corporation Board of Directors Susan Bartlemay suggested postponing the election of officers until the next Board Meeting. On a motion by Joey Herald, seconded by Greg Kennedy, the Board unanimously approved tabling the election of officers until the next Board Meeting. 3. 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: • Consider Incentives to Support the Recruitment of Project Call Center • Consider Incentives to Support the Recruitment of Project Diverse • Consider Incentives to Support the Recruitment of Project London • Consider Incentives to Support the Recruitment of Project Global Data AEDC Meeting Minutes O, taber 1I, 2012 - Page 2 Reconvene into Open Session: The Board reconvened into regular session at 8:45 p.m. 4. Actions Resulting from Executive Session On a motion by Scott Sutherland, seconded by Joey Herald, the Board unanimously approved authorizing the Executive Director to negotiate and execute an economic development agreement with Safeguard Properties, Inc. based on the terms discussed in executive session. On a motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanimously approved authorizing the Executive Director to negotiate and execute an economic development agreement with Bridge Metrics based on the terms discussed in executive session. 5. Approval of the AEDC Financial Reports Harry Whalen and Dan Bowman presented the financial reports. According to Whalen, the AEDC has expended 78 -percent of the AEDC budget for FY 2012. Whalen mentioned that there were increased expenditures for temporary salaries due to the temporary status of John Scriven. Overtime was also up because of various projects and events worked after hours by Tracey Cline and John Scriven. It was noted by Whalen that the Conference and Training expense was 14 - percent over budget. Whalen stated that a mid -year review of the AEDC Budget is allowed to make necessary adjustments to the various expense categories. The Incentive Grant budget category is under budget by slightly more than $1.5 million. Grants scheduled to be paid over the next several months include the Cabela's Acceleration Lane payment, the PFSweb grant, and an incentive to State Farm. The grants to Cisco Systems are still being reviewed by staff in order to resolve capital investment and tax valuation issues. Regarding the Sales Tax Report. Whalen said it exceeded the budget by 10 -percent noting that positive retail sales were a contributing factor. On a motion by Joey Herald, seconded by Scott Sutherland, the Board unanimously approved the AEDC Financial Reports as presented. 6. Discussion of Meeting Location for AEDC Board Meetings It has been proposed that the Regular AEDC Board Meeting be moved to City Hall. Reasons for this change include more seating capacity and better audio-visual equipment. A joint meeting with the AEDC and City Council is scheduled for October 30. During this meeting, the proposed meeting location will be discussed. The AEDC Board decided to combine the November and December meetings and will meet at the AEDC Offices on Wednesday, December 5. AEDC Meeting Mantes October 17. 2012 - Page 3 7 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 Dan Bowman updated the Board on office, industrial, and retail projects. Standex is working out the details of their building permit and lease agreement with plans to make a formal announcement in January 2013. Allen is still in the running for Project Azalea, a multi -billion dollar project that could bring 1,000 jobs to Allen. Water consumption required by this company will have to be addressed should they pick Allen for their new location. Project Cigar is a retail cigar smoking lounge that is looking at land in Allen for a build -to -suit facility that would be their second location in the US. Currently, they have a warehouse in Pennsylvania that transacts online sales of over $60 million per year. AEDC Staff is working with Applied Marketing to complete a validation study to evaluate recommended target industry sectors for the City of Allen. Whalen will be making plans for a China Mission Trip in November that will be funded by former colleagues from Michigan. This trip will be in line with the EB -5 initiative to attract foreign investment to Allen. EB -5 allows foreign investors from China and other foreign countries to invest $1 million and create jobs in exchange for citizenship status. International trips were originally scheduled for 2013, but have been moved to 2012 due to the opportunity presented by the State of Michigan. The AEDC will be sponsoring and hosting two events the weekend of November 9" Sixty brokers and site consultants will be invited to attend the final home football game for the Allen Eagles. At the same time, over 40 local business guests and brokers have been invited to the AEDC Suite at the Allen Event Center for the annual Texas Stampede. The Texas Stampede will have one performance Friday night and two performances on Saturday featuring rodeo events and music concerts. AEDC Staff informed the Board that every two years board members are required to attend a TEDC Sales Tax Workshop. Because Greg Kennedy and Michael Schaeffer are new board members, they will need to attend this class. 8. Determine Next Meeting Date — December 5, 2012 The next AEDC Board meeting is scheduled for Wednesday, December 5, 2012 at 6:00 p.m. 9 Adiournment On a motion by Greg Kennedy, seconded by Joey Herald, the meeting was adjourned at 9:32 p.m. I I AFDC Meeting Minutes October 17, 2012 - Page 4 These Minutes approved this 5`h day of December 2012. Susan Bartlemay, Vice Pres' ent Scott Sutherland, Secretary/Treasurer