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Home My WebLink AboutMin - Economic Development Corporation - 2013 - 07/10 - RegularALLE,N ECONOMIC DEVELOPME'NTCORPORATION (AEDQ BOARD OF DIRET"I"ORS REGULAR MIT TTING WEDNESDAY, JULY 10, 2013 Board S taff Guests Scott Sutherland Harry Whalen Peter Varga,, Susan Bartlemay Dan w Boman Bo Bass, Greg Kennedy John Scriven Kent Smith Joey Herald -A bsent Tracey, Cline Judy Brown Michael Schaeffer Pete Smith Chris Brown :all to Order and Announce a Quorurn Present With a quorum of the Board present, tile Regular Meeting of the Allen Economic Deveklpvnej,it Corporation (AEDQ Board of Directors was called to order by President Scott Sutherland at 6:04 p.m. oil Wednesday, July 10, 20,13 at the AIDC Office, 1. Approval of time .Minutes Of the June 5 2013 Regular BoardMg "fin On a motion by Susan Bartlernay, seconded by Greg Kennedy, the Board unaaimously approved the Minutes of the June 5, 2013 Regular Board Meeting as presented. 2. Approval of Economic DevelgpmgjL�greernent with Trintas LLC. Harry Whalen briefed the Board on the credit card reader company,'Trintas. Mr. Whalen said the company plans on signing a lease this week for a building in Allen Station Business Park and has a goal of Occupying the facility in Allen on Septrernber 1, 2013. The company will sign a sixty-four nionth lease with a right of first option to expand to adjacent space. It is possible that the company could expand, within 90 days of obtaining a new deal. The Econornic DeveloMnent Agreement will provide'frintas $30,000 for nioving expenses. On a motion by Greg Kennedy, seconded by Michiel Schaeffer, the Board unanin'10LIsly approved the Economic Development Agreement with Trintas LLC as presented. 3. Apq,tqval of Economic Qevelqp!,pDj1 ire gi _A�Tykjt with Lewis &Ellis Inc. Harry Whalen presented details about the Economic Development Agreement with Lewis & Ellis, an actuarial firin. The firman has signed the Economic Development Agreement which will provide the conipany $130,000 for the purpose of offsetting existing lease payments and assistance with inoving expenses. The agreement wil,l be paid, in two installments of $65,000 each. At the request of the company, the agreement has been changed to nicike the second p�aynient payable at eight rnontlis instead of twelve months. Oni amotion by Greg Kennedy, seconded by Susan Bartlemay, the Roard unaniniouslyapproved tile Econoinic Development Agreement with Lewis & Ellis Inc, as presented. ALDCMeeting, Minutes July 10, 2013'- Page 2 4. Convene into Closed Executive evn_; P Lirsuantjgjem,s GovcLILninent (gdeZSeqion .5LL087I)lertionoIL-oiiotiiia,_DeKelpMi�NeZL)tl�,itioM-.-roF)elibet,,tte oMMejcLaln14Fjnancia1 JnLc�irna!ion and E_cOLionitcLIncenti�Les forlb–,e—Followin j, a. Cons j der Incentives to Retai n and Expand a Loc al A I len Cornpany Reconvene into Open Session The Board reconvened into regular session at 6:58 p,rn. 5. Actions 'RCSUlti g from Executive Session No action taken 6. �Ruovai of the Amc Financial Tie ,3Loarts — Greg Kennedy presented the AEDC Financial Reports. Mr, Kennedy noted that sales tax revenue was down for the nionili, but the total income is up 2 -percent year-to-date. The notes Summary handout provided as detailed explanation about Rental/Leasing, Consulting and Marketing expenses, The monthly cash balance sheet indicates no ma or changes for the current nionth. In August 2013, a ,large grant, amount will be paid orit for Cabela's and possibly Cisco. Cisco's numbers should be firmed up when the tax appraisal report beconies available a( 'the end Of JUly, Dan Bowman will verify Cisco's tax, value in, ALIgUSt and will work with Pete Smith to notify Cisco if their tax value does not comply with the Economic Development Agreenient. Michael Schaeffer inquired about the investment income category. Mr. Kennedy commented that there acre only as few investment options available. Peter Vargas stated the investruents must be sale and backed by collateral, Mr. Vargas mentioned investments would involve bonds, Texas Pool, mutual funds and mortgage banks. Mr. Kennedy recently received bond rates and will share this infori-nation at the next Board Meeting. Mr. Kennedy stated sales tax revenue for April was down 3 --percent to budget and Lip for tile sarrie nnonth,prior year 10 -percent. Mr. Vargas said sales tax revenue Will increase 1.8-percerit next month. Mr. Kennedy added that sales tax revenues are prqjected to increase and that assets/liabilities look good. On a motion by Greg Kennedy, seconded by Michael Schaeffer, the Board unanimouslyapproved the AEDC Financial Reports as presented. 7. U. R 4!� - i s - of tyre AF-DADCrt j 41 jinisqtive ts flarry Whalen and Dan it updated the, Board on office, inclustrial, and retail projects, AEDC Staff have been working closely with the Frontier managenient tearn in the Allen Offic'e, to position Allen as a viable headquarter relocation for Frontier Coinrilunications, should this becofne an option, A ED C 'e(� 'MIing Ms inute 'Wy /0, 2013 - Page 3 Zynga was forced to completely close their Allen office due to cost cutting measures nationwide. Several former Zynga, employees are trying to start a new company with plans to locate in Allen. The AEDC provided meeting space for a planning session by the Zynga redundant team. Gary Riggs Interiors appears to be vaicating their building on Century Parkway which will result in a violation of their ED Agreement. The company was scheduled to receive two $50,0(lO payn)entsfor Ea total, of $100,000. They received one payment of $50,000 with the second installment withheld. If they are in violation this amount would need to be paid back to the AEDC. AEDC Staffwill work with Pete Sinith to request re -payment of this grant if they are in violation. A notification will be Sent to the company after an attempt is made to speak with Gary Riggs. AEDC Staff met with three development firms to discuss plans for Allen Central Park. They only specialize in office development., but have connections with hotel developers. The goal is to tie Allen Central Park with Watters Creek, An updated hotel study is due by Monday or Tuesday next week. Details about Project Hightower were presented to the Board. This project involves a 350K square foot distribution center on the Peter Ng property, would create 250-350 jobs and would result, in a capital investment of $100 million. Ms. Bartlernay and Mr. Kennedy concurred that the best use of this land would be for data centers. Mr. Schaeffer stated it is premature to develop this property due to the foreclosure issue, Mr. Vargas commented this is a premier property with a prernier use. 'The consensus of the Board is for this distribution client to pursue locations other than Allen, Mr. Bowman participated in the 'FexasOne NY Recruitment trip. Several site selection firms and insurance companies showed an interest in relocating jobs to Texas and North Carolina. Applied Marketing assisted Mr. Bowman to identify a finance project. as a result of this trip, Mr. Schaeffer requested an update on Greenling, Mr. Whalen said AEDC Staff recently conducted. as BRE visit with Greenling management. The company is growing, but pays a low wage, $7-$10 per hour. Originally, the goal was for Greenling to attract other businesses, but this has not been the case. Mr. Whalen noted tliat Greenling is a lifestyle business and receives an annual grant of $40,000. Concerning the AEDC Staff report, Mr. Whalen stated it will be distributed on a inoriffily basis. A paragraph format will be used to include new proJects and significant changes to existing ones, S. Determine Next Meeting Date — ALWUSt'7, 2013 The next A141)(" Board meeting is scheduled for Wednesday,, August 7, 201.3 at 6:00 p.m. 9. Mmmn�-,At On as motion by Greg Kennedy, seconded by Michael Schaeffer, the 11"WeLifIg was adjourned a[ 7:38 p.tn. These Minutes app.roved, this U, dayo.fAugust 2013, X . . . .... ...... . . . ..... Sif I Susan Balllclnu 'ay' dent,