HomeMy WebLinkAboutMin - Economic Development Corporation - 2012 - 12/05 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
WEDNESDAY, DECEMBER 5, 2012
Board Staff Guests
Susan Bartlemay Harry Whalen
Scott Sutherland Dan Bowman
Joey Herald John Scriven
Greg Kennedy Pete Smith
Michael Schaeffer
Call to Order and Announce a Ouomm 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 Vice -President Susan Bartlemay
at 7-43 p.m. on Wednesday, December 5, 2012 at the AEDC Office.
1. Approval of the Minutes of the October 17, 2012 Regular Board Meeting
On a motion by Scott Sutherland, seconded by Michael Schaeffer, the Board unanimously
approved the Minutes of the October 17, 2012 Regular Meeting as presented.
2. Approval of the Minutes of the October 30, 2012 Special Called Meeting
On a motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanimously
approved the Minutes of the October 30, 2012 Special Called Meeting as presented.
3. Election of Officers of the Allen Economic Development Corporation Board of Directors
Susan Bartlemay stated the floor was open to discuss and nominate officers for the Allen
Economic Development Corporation Board of Directors. Pete Smith said that the Board would
need to make a motion to elect Board Members to the officer positions.
On a motion by Michael Schaeffer, seconded by Greg Kennedy, the Board unanimously
approved the election of Scott Sutherland as AEDC Board President.
On a motion by Greg Kennedy, seconded by Joey Herald, the Board unanimously approved the
election of Susan Bartlemay as AEDC Board Vice President.
On a motion by Scott Sutherland, seconded by Michael Schaeffer, the Board unanimously
approved the election of Greg Kennedy as AEDC Board Secretary/Treasurer.
AFDC Meeting Minutes
December 5, 2012 - Page 2
4. Approval of Economic Development Agreement with Global IP Networks
Harry Whalen provided an update regarding the Global IP Networks project. The client plans to
purchase 5 acres of Peter Ng's land and build a Colocation Data Center. The client also wants an
option to purchase an additional 5 acres. The plan is to build five 20,000 -square foot data center
pods over a period of ten years, with one pod being built every two years. The client spoke with
Dan Bowman and indicated that they plan to move forward with the location in Allen.
The AEDC proposal provided an incentive grant of $333,000 upon the ground breaking for the
first pod, $333,000 on the first anniversary and $333,000 upon ground breaking for the second
pod. hi addition, the agreement would include paying one-third of the total rollback tax cost of
$140,000.
Scott Sutherland is concerned about heavily front loading the incentives and commented that the
deal is too optimistic. Joey Herald agrees with Scott, but understands the marketing value of a
data center campus and suggested waiting on making the third payment until the issuance of the
Certificate of Occupancy (CO) for the second pod. Michael Schaeffer recommended paying half
of the incentive payment for the second pod upon construction and the other half when the
second pod is completed.
Susan Bartlemay mentioned that the AEDC is taking a risk providing an incentive for this
project, but the biggest advantage is securing a quality business on Peter Ng's land and she feels
the Board should move forward in providing the incentive.
The consensus of the Board was to pay the first incentive grant of $333,000 upon ground
breaking of the first pod, pay the second incentive grant of $333,000 one year later or when the
CO is issued, and pay the third incentive grant of $333,000 in two installments (half upon ground
breaking of the second pod and half when the CO is issued for the second pod). The Board also
agreed to pay one-third of the rollback taxes, which are $140,000.
On a motion by Michael Schaeffer, seconded by Greg Kennedy, the Board unanimously agreed
to authorize the Executive Director to renegotiate and execute an Economic Development
Agreement with Global IP Networks.
5. Approval of Economic Development Agreement with Bridge Metrics, LLC
Harry Whalen gave an update on Bridge Metrics, a cloud -based internet marking firm. This
company is planning to relocate from Frisco and is considering leasing 15,000 -square feet in the
HIT budding with an option to expand into an additional 15,000 square feet. In addition to
Allen, they are looking at locations in Frisco and Addison.
The company stated they will employ 50 people by the end of 2013 and grow to 150 employees
in three years. They would sign a 4 1/2 year lease and invest $75,000. Parking spaces are not an
issue for the client at this site. The recommended incentive agreement is to provide the company
with a $500 grant per employment position
AEDC Meeting Minutes
December 5, 2012 - Page 3
On motion by Greg Kennedy, seconded by Joey Herald, the Board unanimously agreed to
authorize the Executive Director to negotiate and execute an incentive agreement with Bridge
Metrics, LLC.
6. 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 an Agreement for Pre -Development Services for Allen Central Park
Reconvene into Open Session:
The Board reconvened into regular session at 8:43 p.m.
7 Actions Resulting from Executive Session
No action was taken.
8. Approval of the AEDC Financial Reports
1 Harry Whalen and Dan Bowman presented the financial reports. Dan Bowman referenced the
Cash Balance report stating that the Acceleration Lane and KONE grants are expected to be paid
in the next month. The Statutes grant payment will be coming soon. Pending incentive grant
payments for Bridge Metrics, Global IP Networks, and Diversified Healthcare are anticipated in
2013.
Bowman stated there is a healthy cash balance with the lowest point in the $4 million range.
With consumer confidence in the market and retail attraction of people to Allen, sales tax
revenue has exceeded the budget for the month and the year.
On a motion by Greg Kennedy, seconded by Joey Herald, the Board unanimously approved the
AEDC Financial Reports as presented
9 AEDC Report Regarding Administrative and Marketing Activities of the AEDC, Upcomine
Local Events, Office, Industrial, Data Center, Retail, and Business Retention Protects
Harry Whalen and Dan Bowman updated the Board on office, industrial, and retail projects.
Harry Whalen updated the Board on his trip to China. While in Shanghai, several investors
showed an interest in EB -5 and were interested in coming to Allen and Dallas. Whalen met with
a former colleague and banker while in Seoul, Korea and learned about a large Korean
population in Dallas that is interested in establishing a branch office in the Dallas area.
Upon returning from China, Whalen went on a California Mission Trip to attend the Investment
Management Network (IMN) conference. This was a data center conference with 400 in
attendance that covered real estate and financing for data centers. Whalen concluded this
conference was very beneficial and plans on displaying an AEDC Booth at the event next year.
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AFDC Meeting Minutes
De, ember 5, 2012 - Page 4
Harry Whalen and Ray Dunlap, Executive Director for Fairview Economic Development, met
with Yahoo site consultants. Whalen also interacted with sixty companies that are considering
relocating to other states outside of California due in part to tax increases.
Salesforce, an online data management software tool, will be implemented by the AEDC Staff
and will provide a central location to record project information and contacts. The Applied
Marketing Group will be assessing key target industries and will schedule five trips in 2013 for
the AEDC Staff to meet with company executives and site consultants involved in these key
industries. The Allen High School Football Game and Texas Stampede were two marketing
events hosted by the AEDC to build and extend relationships with brokers, clients, site
consultants and existing business leaders in Allen.
Clients from Project Central Cap visited Allen for the second time last week. A site consultant
from North Carolina and clients from Michigan are considering 915 Enterprise for their roofing
business. The client manufactures a plastic membrane roof.
10. Determine Next Meeting Date — January 9, 2013
The next AEDC Board meeting is scheduled for Wednesday, January 9, 2013 at 6:00 p.m.
11. Adioumment
On a motion by Joey Herald, seconded by Michael Schaeffer, the meeting was adjourned at
9-14 p.m.
These Minutes approved this 6" day of February 2013.
Scott Sutherland, President Susan Bartlemay, Vice P sident