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Home My WebLink AboutMin - Economic Development Corporation - 2014 - 02/05 - RegularALLEN ECONOMIC DEVELOPMEN' r CORPORATION (AEDC) BOA" OF DIRECTORS REGULAR MEETING' WEDNESDAY, FEBRUARY 5,2014 Board Scott Sutherland Michael Schaeffer Greg Kennedy Joey Herald Jeff Burkhardt Staff Harry Whalen Dan Bownian, John Scriven Pete Sulith Call to Order and Antlouncezi Qpor�qrn Present Guests Peter Vargas I.= Battle Carlton Schwab Murl Richardson With a quorurn of the Board present withnicnibers Scott Sutherland, Michael Schaeffer, Greg Kennedy, Joey Herald and Jeff Burkhardt in attendance, the Regular Meeting of tile Allen Economic Development Corporation (AEDC') Board of Directors was called to order by President Scott Sutherland at 6:02 p,m, on Wednesday, 1,ebruary 5, 2014 at the AEDC Office, 1. Approval cal the Minutes of the !anLiqL y 15,2014,Re ru]ArBoard Meetiro & On a motion by (Jreg Kennedy, seconded by Joey Herald, the Board unanimously approved the Minutes of the January 15, 2014 Regiflar Board Meeting as presented. 2. Presentation by Carlton Schwab, President & CEOJ'exas Economic Development Council — CoLmnjoijaljtyofExcqlleijcq jongEDC'sinTexas Carlton Schwab shared information with the Board about the history and PLI-fl)OSC ofthe Texas Economic Development Cotinell (TEDC), Mr. Schwab provided all overview of economic development, bow it has progressed over the past forty years and the current role of economic devc1opment organizations. 3. Prc�sentafion update fi-om Murl Richardson of Peloto. i i Leal 1state Advisors for 23 acres in Allen Central Park. A presentation by MUH Richardson with Peloton outlined the developer's proposed responsibilities for Allen Central Park. Mr. Richardson noted that tile development agrcement between the AEN' and Pelotonisbeings finalized. A schedule of acti vi ties over tile next several months was discussed, Mr. Richardson propose(] that the AEDC,I participate in a design charrette to provide input into the master planning process. AEJJC iWeefing Alimiles Fehruwy 5, 2014 - Page 2 4. Convene into Closed Executive Session: Pursuant to 'rexas Government Code Section 55 1,087, Deliberation of Econornic DeveWment Newtiations: To Deliberate Commercial and Financial Information and Econornic hicentivesfor the Followin a. Consider Incentives to SLIpport the Expansion of Atlas Copco Convene into Closed Executive Session: Pursuant to'11'exas. ("Jovernment Code, Section, '551 071 , Urc Deliberation of t L .......... , chase Exchan c, or Value of Real Proveriv: alc �P - � � a. Consider Sale of AEDC', -Owned Tract in M i I lenniurn Technology Park b. Consider Option Agreement forthe Purchase of a Tract in Millennium'I"echnology Park 'rhe Board convened into closed executive session at 6:56 p,m, Reconvene MtL) ( )ej I Session The Board reconvened into regular session at 7A4 pmi. 5. Actions Resultine frorn Executive Session No action taken, 6. the AEDC"Financial ire ppils Greg Keruiedy presented the AEDC'Financial Reports. Mr, Kennedy stated the AE DC Staff is working with the Finance Department to review the year to data sales tax revenue Figures. $1.4 million in sales tax revenues, have been received by the AEDC since October. Mr. Kennedy reminded the Board that sales tax collections lag by two months. AEDC, expenses, year to date are approximately $904,000. Mr. Kennedy noted that expenses for Consulting Services were higher for the month due to attorney fees for KONE and Peloton econornic developnient agreenicrits, Payments for incentives in February include No Magic for $15,000, Photronies at $12,000, Standex at $35,00,0 and Turrentine-Jackson for $50,000. TUrrctitine-Jackson has not requestedthis gyrant; Dan Bowman will tbIlOW-LIP with therm to deterrnine if they will be, requesting this incentive. The payment of $300,000 in December was for Frontier. Sales tax receipts for November were in excess of the budget, but December nurnbers will need to be watched because the budget ainoUnt is high at $981,000, Overall, the reventic arnount is trending Up, Mr. Kennedy indicated there were no material changes on the Balance Sheet regarding the assets and liabilities. The ending ffind balance is ck)se to $8,000,000 On z7t inotion by Michael Schaeffer, seconded by Joey Herald, the Board Unanimously approved the AFDC" Financial Reports as presented, A EDC.Weefing Iffinwes Fehruary 5, 2014 - Page 3 7, AE C" Report &a�arctt.PZ.Adniinistrative and Marketing, Activities of tile AEDC,-Vp Local Events, Office, Industrial Data enter Business Retentkm rRetaiI44�t Business .............. . .. --i 'Harry Whalenupdated the Board on office, Industrial, and retail, projects. K,ONE is expected to sign a lease within the next week. Project Horne Run is waiting on a response Bonn the State regarding their application herr the Texas Enterprise Fund. CVE T ectniologies is moving forward with permitting for 915 Enterprise, Project Chicken Fry involves a restaurant chain that has requested the EDC or CDC to, build two restaurants and then lease thenen back to the company, Sales and property tax would be just under $400,000 with total sales r -or the chicken restaurant at $3.9 million and the steak restaurant at $2.3 million. AEDC Staff have been in dis,cuss,ions with a hotel group from Dallas that is considering construction of a hotel and corrterence center. Ali MOU has been received by the AFDC" and is under review. Staff continues to meet with land owners, developers and brokers, in the Dallas market area. annin 8. Up it Retreat for Februmum date on the AEDC Plannh . . . .......... Mr. Kennedy handed out an overview of the agenda Ibr the Board Retreat. Mr. Kennedy stated the Board needs to review the City's Strategic Plan and provide any feedback to Bill Wagoner by Sunday evening. Mr. Sutherland reminded the Board to express any opinions about the agenda before the posting deadline of Tuesday, Febr-uary 18, Mr, Wagoner will call all the Board rriernbers next week. On Friday February 21, Mr. Wagoner wants to meet individually with each Board rnernber and City officials. Tracey Cline will email calendar invitations for these niectirigs. Mr. Sutherland requested that the Board receive details about the dinner planned t6r the Friday evening prior to the Board Retreat. 9 R mit jpgliding Ci of AllenStratqgLq-,-r Jo -ZtIqningRetreqt Herak Mr. Herald stated the City Council met on January 25 to discuss the strategic plan fbi, the City. Mr. Herald commented that the strategies did not change dramatically, but the session did identify short list of items, that should receive locus ti-om the AFDC" and City Staft' Mr, Herald briefly shared with the Board seven items that are a priority for the City'. 1, Cl. Determine Next Micetin-, �Qat!� --_M, t 5_, 2014 The next SEDC; Board meeting is scheduled for Wednesday, March 5, 2014 at 6:00 prn. 11, DiSCUSSi011 of Future AgqjL(t gLjn,� Mr. Sutherland shared that as policy needs to be created for the approval of expenses above $2,500 that are not already included in the approved budget, Pete Smith retrunded the Board that there is not a policy regarding the amount that the AEDC'Executive Director can spend on individual line items within the budget. ADC'Meeling Uhnnes Fetwtuvy 5, 2014- Page 4 12., Convene into Closed Exccu I ' ivc Session, Pursuant to Texas Goverrunctit Code, Section 551.074 for Personnel Matters: Discussion of th nd ErpployiLieqt of the Executive Director 1' he Board convened into closed executive session at 8: 17 prn, Reconvene int p () 3en S,��ssion j__ _5 _ The Board reconvened into regular session at 8:56 p.m. Harry Whalen announced his resignation as Executive Director effective February 7, 2014 and presented a written resignation to the Board. 13, Actions resultinp- from executive session On a motion made by Greg Kennedy, seconded by Joey Herald the Board unarnmouslyapproved the resignation offlarry Whalen and waived the 60 day notice required under the employment agreement and agreed to make the resignation effective Febniary 7, 2014. On a motion made by Michael Schaeffer, seconded by Joey Herald the Board unanimously authorized the AED(.,' Board President to negotiate and execute a consulting agreement with Harry Whalen for a period ot'90 days for the sum of $15,000. On a rnotion made by Teff Burkhardt, seconded by (..jreg Kennedy the Board unanimously approved appointing Dan Bowman as Interim Executive Director effective February 7, 2014. 14. Board Reconvened into Closed Executive Session: Pursuant to "'Fexas Government Code, Section 551.@74 for Persojuiel Matters: Discussion of the DutiesResponsibilities Perfognance, Evaluation and EmploylLient of time ExecutiveDirectorat 9. 1 Op.m.. Reconvene into j 0 en. Session The Board reconvened into regular session at 9:25 p.m, 15. Actions Resulting" fironi r,:Xecufive Session On a motion made by Michael Schaeffer, seconded by Joey Herald the Board unanirnously approved the appointment of Joey Herald and Greg Kennedy to search for as search firm for the new Executive Director. 16. A )Irtimcnt On a motion by Greg Kenncdy, secondedby Joey Herald, the rn.ecting was ad ourncd at 9.26 p.m. 1'ehruevy 5, 2014 - Page These Minutes approved this 12'11 day, or March, 2014. ..... ........ Scott S-Ljthcrland, President Michail Schaeffer, Vice President