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HomeMy WebLinkAboutMin - Economic Development Corporation - 2013 - 08/07 - RegularALLENECONOMIC DEVELOPMENT CORPORATION (AEDQ BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, AUGUST 7,2013 Board Scott Sutherland - Absent Susan Bartlernay - Late Greg Kennedy Joey Herald Michael Schaeffer Staff Harry 'Whalen John Scar vena Pete Snai-th -- Late Call to Order and Announce as Ouorurn Present Guests Peter Vargas Bo Bass Kevin Harnmeke Connie Duehl David fettle Torn McElroy Lawrence Cosby Dan Metevier, Jason Wright Elaine Flesch Douglas Trent With a quorurn of the Bow -d present, the Regular MeetillgoftheAflen Economic Development Corporation (AEDC) Board of Directors was called to order by Secretary/Treasurer GregKennedy at 6:01 p.m. on Wednesday, August 7, 2013 at the AE )C Office. 1, A )roval ail the Minutes of the July 10, ?z,Ql 3 t�L lar Board Me t' qS, On as motion by Joey I 1"eraid,seconded by Michael Schaeffer, tile Board unanimously approved the Minutes of the July 10, 2013 Regular Board Meeting as presented, 2. Convene intaa (,',Ioscd Executive Session: Pursuaritto Texas, Goverrinient Co 11, e,,! �q�tjon5�LLto�87- Deliberation of Economic Deyelru�maacr�t,Npgcjtiat ions: To Deliberate Coninlercial .... and Financial .. ........ .... Inl6rination and Economic Incentives for theFollowjqg; a. Consider issues Related to tile Development ofAllen entral Park b. Consider Incentives for the Recruitment of Project Television c. Consider Incentives for the Recruitment cif Pro.ject Diverse d. Consider Incentives to Retain and Expand, as Local Allen ("ornpany Reconvene into Open Session The Board reconvened into regularsession at 7:11 pml. AEDC,Weeeing, APivaes Auguse 7,2013 - Page 2 3, Actions,lZesultlinzy fi-orn Executive Session On a motion by Joey Herald, seconded by Michael Schaeffer, the Board unanimously approved authorizing the Chief'Executive Officer to negotiate and execute an incentive agreement on behalf of the AEDC with ReSource for an incentive of $5l to be paid upon issuance ofa Certificate of Occupancy (CO) of 15,000 to 20,000 square feet of space in One Allen Center. 4. Approval_9f the AEDC Financial gils Greg Kennedy presented the AEDC Financial Reports. Mr. Kennedy stated the revenue receipts for the month of June were tinder budget about 3 -percent, but show a 10 -percent increase over the amount received same month prior year. The Income/Expense Statement indicates the Sales Tax, and Interest on Investments is under 4 -percent for the month, but essentially on target year-to-date. On the expense side, the Temporary Salaries include amounts paid to Jobn Scriven when he was a temp. No additional money will be paid out of this category, so this should be a final number. Dues and subscriptions reflect an a(tjustinent of$21,705.26 which was transferred to the Marketing expense liar TexasOne fees, Mr. Kennedy noted the Marketing expense is over year-to-date, but the goal is to stay within the forecast aniourit of $3 10,000. Office supplies were over budget, but there is sonLe encumbered money, fort ffice Depot that was not spent, 'I"he Protessional Service category is the expense where temporary :salaries are located, not the `Fernporary Salaries category which is designated for city employees. 'Mr. Kennedy has advised Staff that if the run rate for Professional Services is S 123,5001 this expense needs to bereviewed. This amount is equivalent to a couple fE's. Using temps should be evaluated to determine if they are always necessary. In addition, the hourly rate and surcharge fee with the tcj,np service should be neg(Aiatecl. Mr. Kennedy rioted it may make more sense to hire a couple part-time employees who can be flexible and become ffitnifiar with the office routine., Overall, operating expenses are Linder tZ)j- the month and running a little over year-to-date by 7 - percent, but in line with forecast for the remainder of the year. Direct grants are expected to be $12 million Linder budget. The actual forecast is $3.4 million and the budget amount is $5.6 million with a large portion designated for Cisco. Mr. Kennedy commented that additional review by AFDC Staff needs to be pursued regarding the Cisco grant. Mr. Whalen stated the appraisal district provided in.f6rination showing the numbers are under the amount specified in the agreement, AEDC Staff will bring a recommendation to the Board at the September Board Meeting regarding Cisco's incentive milestones. Mr. Kennedy noted the Monthly Cash Balance surin-nary shows incentive grants, in August of $2 irfillion for Cisco and $50,000 for Turrentine-Jackson. It is unlikely that either of these grants will be paid out in August. 14"the Cisco gran't is not paid, then the Cash Balance doesn't change much. Sales Tax Analysis report shows that for May sales and July collections, $616,600 were budgeted and $627,,000 was collected. This,%vas an increase of about 2 -percent over last month and about 8 -Percent ahead of prior year.'Year-to-date shows an increase ofah-nost 8.5 -percent compared to the prior year period in terms of tax revenue, In reviewing the Balance Sheet with Mr. Ilam -peke, Mr. Kennedy noted there were no material changes. AEDCAIeefing Alintoes August 7, 2'013 - I'lage 3 Mr. Kennedy provided the Board with a copy of the resolution passed by the City Council regarding the policy for the investment of Municipal Funds, Mr, Kennedy shared that the Series 2008 bonds have a call date of'Septen-ib er 20,17 with a rate of 3.5 -percent, the Series 2010 A bonds, have a call date ofSepternber 2019 with a 4 -percent rate and the Series 201 () B bonds have a call date of September 20 19 with a rate of about 4.6 -percent. MT. Schaeffer inquired about a bond resolution, how often they need to be reviewed and if you can save an amount that can be bought back. Mr, Vargas stated there is no policy regarding this; however a financial adviser does review them periodically. Most banking institutions will review the debt to determine if there is a significant amount of savings. 'The policy of the city is to save at least 3 - percent of -the total outstanding debt because when you re -issue debt, expenses need to be paid. On a motion by Joey Herald, seconded by Michael Schaeffer,the Board unanimously approved the AEDC Financial Reports as presented. 5�. AE C" Report,RgUrding Administrativeand Marketirw Activities of the AE! k1g, ... .... . . .. . ......... --.. -.-- Locall-Ey,ep.t Centgr,_Reta-il. and Business Retention Prqj(�qt,5 ........ ...... Harry Whalen updated the Board on office, industrial, and retail projects. AEDC Staff is working with a corripany in Allen to relocate into Greg Nelson's new building at AllenPlace. In two to three weeks there should be a signed lease liar 30,000 square f6et at Allen -Place, Project "relevision may also have an interest in rnoving, into AllenPlace, A company is looking at the AEDC-owned 4.3 acres located between WatchGuard and City Hall for an expansion project. Meetings have: been conducted with City Engineering to discuss the detention pond redesign which was reconfigured about three years ago. Options are being considered on how to allow this company to expand. Several Business Retention calls were made with 0knietic, Finisar, Cisco, Andrew's and Frontier. Project Diverse was discussed earlier and we expect this company to relocate to Allen at 1101 Central Expressway. Project CreditfFrintas, LLC has been offered an incentive, they signed a lease and should occupy in Allen on September I,", Project Social APP is as small company that tnay locate at 700 Central Expressway and back fill as vacant space. Project Distribution with a high bay tower is looking at land that is $545.50 per square foot, but inost distributioilL/iiidustrial properties want a $3 range per square foot. Keith Ashley's project is going forward and ho has identified a new tract of land on Ridgernont that appears to, be suitable fiver- his business. A fbod beverage company was looking to locate in Allen, but they didn't feel the incentive offer was adequate and are looking at other options. Mr. Whalen participated in a,rearn Texas Showcase event with twelve site consultants. Jim Renzas, asite consultant froni Irvine, CA, is hosting an event in San Francisco that will be attended by 45 CEO's. Mr, Whalen, would like to sponsor a private dinner with about 6-8 CEO's, An update on the Site Cer-tification of the Howard Hughes property located on the southwest corner of 121 and 75 was presented by Mr. criven. The process began in February when several engineering firins were contacted to provide a proposal. AEDC Staff along, with Mark Buhnash and Nick 1rowne with I-loward flughes narrowed the selection down to two firms, A decision was inade A1IX7 Meeting Minutes Atfsuist 7, 2013 - PagC4 to select both firms as each specializes in certain aspects of site certification, AEDC Staffexpect to receive a site certification repoft by the end of September or first week in October, Mr. Whalen hopes to gain publicity on having what appears to be the first certified site in the Dallas market, Lyne of the goals and objectives of the AEDC is to obtain free media coverage and city highlights for Allen, Family Circle has identified Allen as one of (lie Top 10 Family locations in the nation and Nerd' allet identified Allen as the number 2 location in, Texas forjob seekers. AEDC is talking with Develop Design Construct magazine to highlight a feature story on AllenPlace Business Park. Mr. Whalen will be making a presentation at the City Council Workshop on August 13 to provide the AEI C year in review. The Board is invited to attend this meeting. On September 4, Elizabeth Mon -is with Insight Research will provide an R,01 report to the AEDC Board regarding AFDC's activities over the past 2 years, This study has been conducted since 1992, and shows the impact A:EDC has on generating sales, tax revenue and job creation. On September 10, Ms. Morris will provide this same presentation tai the City Council. Several Ynontlis ago AED( Stat'J"i-net with a law firm in Dallas to discuss EB -5 Regional Center certification for Allen. Af"DC learned that Frisco had already applied fbr this certification and they have approached AEDC to be an affiliate partner with them along with the other EDC 's in Collin County. Mr. Whalen recommends partnering with Frisco to avoid incurring additional expenses. Introductions have been oracle between potential EB ­5 investors ftoni China and Greg Nelson regarding AilenPlacc, Mr. Whalen recorriniended a Board Retreat for the AEDC Board to be field this fhll, perhaps October or November, The agenda would be a dinner the evening before the retreat and a meeting the next morning fi-orn 8 AM to Noon ending, with lunch and a presentation. In talking with a facilitator, he: did not see how we could possibly accomplish all the goals and objectives with a f -bur person staff. Mr. Kennedy prefers Thursday evening and Friday. Michael Schaeffer is totally flexible and Joey 1-ferald said Saturday would be best. Susan Bartlemay will not be here during October or November. Mr. Smith, City Attorney, noted that the Board Retreat must be held in Allen, Mr. Kennedy had a question about the Special Called Board meeting on August 22 to be held at 3 PM. Some Board Members would prefer to niect at 4 PM to accommodate their. schedules, Mr. Whalen said the meeting will begin at 4 I'M and will be siniflar to this evening's presentation; however there will be three, possibly fourw presentations by potential developers. Ms. Bartlernay co.nuncrited that if a developer does not want to build a rind -rise or high-rise office/hotel complex then they should not be presenting, at this meeting. Mr. Whalen said that this particular developer may not be asked to attend this meeting, because the vision of that firm is f6r a low-rise project. 6, Determine Next Mcetiqg.Datc ­ Septernber.4,2013 The next AEDC Board meeting is scheduled for Wednesday, September 4, 2013 at 6:00 p.m. A EDC Meefing Afinules August 7, 201'3 - Page, 5 7, Adjournment On a motion by Michael Schaeffer, seconded by Susan Baftlemay, the meeting was adjoumed a.t 7':42 pm,, These Minutes approved this 0" day of'September, 2013,, ...... . ........... . . Scott Sutherland, President Susan Bartlemay, Vice Pres', ent