Loading...
HomeMy WebLinkAboutMin - Economic Development Corporation - 2015 - 05/06 - RegularBoard Scott Sutherland Michael Schaeffer Greg Kennedy Joey Herald Jeff Burkhardt BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, MAY 6,2015 Staff' Daniel Bowman David Ellis Melissa Reecer Pete Smith Peter Vargas Call to Order and Announce a Quorum Present Guests David Hartman Tom Arnold Dean Harkins Ruben Alvarado Ken Jones Jeff Summers Brad MeJunkin With a quorum of the Board present with members Scott Sutherland, Michael Schaeffer, Greg Kennedy, Joey Herald and Jeff Burkhardt in attendance, the Regular, Meeting of the Allen Economic Development Corporation (AFDC) Board of Directors was called to order by President Sutherland at 6:0�7 p.m. on Wednesday, May 6, 2015, at the AEDC Office, 1. Approval of the Minutes of the April 1, 2015 Re lar AEDC Board Meeting, On a motion by Greg, Kennedy, seconded by Joey Herald, the Board unanimously approved the Minutes of the April 1, 2015 Regular AEDC Board Meeting, 2. AV11roval of Second ended and Restated Economic Devellopment-Aagement with CVE Technology GrouInc. Daniel Bowman requested that the Board approve an amendment to the CVE Economic Development, agreement that extends the timeframe for creating the 300 required employment positions until the 6 month anniversary of the company's receipt of their certificate of occupancy. He also requested that the Board combine the first two grants of $ 175,0010 and 125,000, into one single grant payment of $300,000 payable at the one year anniversary date of the certificate of occupancy, Ruben Alvarado, Vice President of Technology, updated the Board on the status, ofC'A'E and explained that the company is expanding rapidly at the Allen location. On a motion by Joey Herald, seconded by Jeff Burkhardt, the Board unanimously approved the terms of the Second Amended and Restated Economic Development Agreement with CVE'Technoloig,y Group Inc. and authorized the Executive Director to execute the agreement. 3. Approval of First Amendment to Economic Development Agreement with MonkeySparts Inc. Daniel Bowman requested that the Board approve an amendment to the original Economic Development Agreement with, MonkeySports by requiring the company to have 125 employees by the six month anniversary of the date they receivetheir certificate of occupancy and extending the timeframe for creating the full 203 positions until the nine month anniversary of their receipt of a certificate ofoccupancy. AEDC Mecting Afinures Alay 6, 20,15 - Page 2 On a motion by Michael Schaeffer, seconded by Greg Kennedy, the Board unanimously approved the terms of the First Amendment to Economic Development Agreement with Monkey ports Inc, and authorized the Executive Director to execute the agreement. 4. Approval of Economic Develo pment Agreement with Ari -Tex Electric Inc. and Allentown Five, Inc. Daniel Bowman asked the Board to approve adding an additional incentive of up to $25,000 for a left turn lane to the existing Aug; -Tex Economic Development Agreement terms. This amount covers up to half of the amount of the turn lane; the City of Allen is covering the remaining half. Scott Sutherland inquired about the length of time that the owner had known about the need for the tum lane. Ari -Tex representatives had indicated that they were just informed within the last month. Peter Vargas indicated that the left turn lane is a requirement of the City of Allen. On a motion by Joey Herald, seconded by Jeff Burkhardt, the Board unanimously approved the terns of the Economic Development Agreement with Ari -Tex Electric Inc. and Allentown Five, Inc, and authorized the Executive Director to execute the agreement as, presented. 5. Approval of Economic Development Aarreernent with Atrion Co;Moration. Daniel Bowman presented the Economic Agreement with Atrion Corporation. The agreement was negotiated in accordance with the AEDC Board's original offer, of Sl,0100,001 to be paid over 5 years based on Atrion (Quest Medical) installing $ 1,000,000 in equipment up front with an additional approximately $ 1,000,1000 worth of equipment within 5 years. In addition., the company must maintain the operation in Allen for a minimum of 10 years. Ken Jones and Jeff Summers updated the Board on the status, of the project, indicating the additional equipment is due to be delivered within the, year. On a motion by Greg Kennedy, seconded by Joey Herald, the Board unanimously approved the terms of the Economic Development Agreement with Atrion Corporation and authorized the Executive Director to negotiate and execute the agreement. 6. Approval of Ecoliornic Development AgLeement with Gorilla Technology Americas, In Daniel Bowman requested that the Board approve the Economic Agreement with Gorilla Technology. The agreement was negotiated based on, the terms originally provided by the: Board, providing a $50,00:0 grant to be paid in two installments based on maintaining 30, employees for 5 years, along with a $,100,000 capital investment. On a motion by Jeff Burkhardt, seconded by Michael Schaeffer, the Board unanimously approved the terrns of the Economic Development Agreement, with Gorilla Technology Americas, Inc., and authorized the Executive Director to execute the agreement as, presented, AEDCMcesingMinwes W, 6 2015 - Page 3 7. Approval of Economic Development Agreement with TCH Altera LLC. Daniel Bowman updated the Board on the Hotel Conference Center and requested that the Board approve the Ecornoomic Development Agreement with TCH Altera, The Board discussed the possibility of sharing parking between the hotel and the future office building; bete Smith stated that TC'H Altera is planning to utilize the entire parking garage for their project and shared parking had not been included in the negotiations. Bowman stated that a future office developer will be responsible for the parking for, the office building. On a motion by Michael Schaeffer, seconded by Greg Kennedy, the Board unanimously approved the terms of the Economic, Development Agreement with TCH Altera LLC, and authorized the Executive - Director to execute the agreement. 8. Approval of Pqr_c_hggUnd, Sale Agreement with TCH Altera LLQ, 9. Review and Approval of Master Lease Aurcement with Peloton Real Estate Advisiors, Inc. and other Documents Associated with the Construction ofa Class A Off a Q Building in Watters Creek Office Park at Bethany and US 75. Daniel Bowman stated that Protective Life Insurance submitted their feedback and., due to the complexity of the transaction, it was in the best interest of the AEDC to seek outside legal, advice regarding the agreement. They came up with a draft tri -party agreement between AEDC, Protective and Peloton. Protective is, still reviewing the agreement and plans to respond this week. The Board expressed their concern over how long it has taken to come to an agreement with a] I parties regarding the master lease. They would like to review Protective's response. 10. Review Designs bTIG for the Development of Rideeview Business Center and Consider Oytio, Agreements, Associated with Land of SH 121 Identified for Bowman updated the board on the lUdgieview Business Center office development and asked the Board to approve the option agreements with Betty Williams, Trust and the Cottonwood Creek Baptist Church based on the Letters of Intent that were presented. Brad MirJunkin updated the Board on the project, showing renderings of the proposed phase I office building in the park. Scott Sutherland asked why TIG is not optioning the land directly; McJunkin stated. that AFDC is handling the option agreements as a partner in the development. On a motion by Greg Kennedy, seconded by Joey Herald, the Board unanimously authorized the Executive Director to negotiate and execute a real estate option agreement with Betty C. Williams Trust and a real estate option agreement with Cottonwood Creek Baptist Church pursuant to the Letters of Intent with those respective entities. AEDC Meeting Minutes May 6. 015 - Page 4 11. Rgview AED�C Budget for FY 2016 and Adiustmenis to AEDC Bud yet for FY 2015. Bowmen shared a proposed draft for the revised 2015 fiscal year budget and the upcoming 20,16 fiscal year budget. Overall, the entirety of the revised FY 20,16 budget as proposed would decrease by ',/% a percent and the new budget for FYI 6 would increase by 6%. Persotaiel will remain close, to the current budget for FY 2015, but is expected to increase in about 3 , 5�% in FY 2016 due to the new staff. Bowman presented the staff positions planned or currently in place at the AEDC, including the Marketing Manager, Economic Development Analyst, Assistant Director, Business Retention Manager, Office Manager and Executive Director. The AFDC Board generally agreed with these outlined positions and directed Bowman to proceed with this staffing plan. Bowman proposed that a new account be set up for BRE (Business, Retention and Expansion). Bowman discussed the AEDC disconnecting, from City I.T. services and purchasing I.T. equipment and services through a third party vendor. The AEDC Board stated their preference to retain phone service tbyough the City of Allen if that is feasible. The AEDC Board generally agreed with outsourcing AEDC I.T. equipment and services to, a, third party vendor and directed Bowman to proceed with this, I.T. transition. Scott Sutherland requested, a comparison with neighboring ED,Cs of costs and budgets. fie also inquired about the increase of'the lease: payments; Dan explained that the price will increase slightly due to needing to, extend the lease another 18 months. Greg Kennedy reviewed the financial reports with the Board. Sales tax revenue was received at the budgeted amount for tile month of March, It came in 5% above the same month from the previous year. Sales tax revenue for the month of April was, 6% below budget and approximately 31V'6 below the same month from the previous year. This is, because the AEDC had significant one-time purchases reported for April 201.4 that resulted in a one-time increase in sales tax receipts. Consulting services was alit higher than previous months due to, additional need of legal services for the many economic development agreements under review. Andrews Distributing received their annual grant payment in March. The earnest money for the Lebow land Purchase was paid out in March. May is projected to have quite a few large grant payments due to upcoming incentive deadlines, 13. Report on AEDCOffigg. Industrial., Data gr Retail and Business Retention Proi,ects and update'u the Status or AEDC Marketing Activities, Dan Bowman updated the Board on the numerous projects being pursued by the AEDC. AEDC Meeting Minutes May 6, 2015 - Page 5 14. Discussion or AEDC Br4 Mcmber Candidate Characteristics. Scott Sutherland requested that board members review the existing Board Member Candidate, Characteristics; no comments were given by Board members. He asked the Board to submit any additional comments to him within the next week 15. Determine Next Meeting Date-- June 3, 2015 11111111 11111 � p 11111111ill 71190-IMPT ININ No items were discussed, 17. Adioumment On a motion by Greg, Kennedy,, seconded by Michael Schaeffer, the meeting was adjourned at 8:33 p.m. These Minutes approved this 3" day of June, 2015, . . ................................... . . . . . . . ............................................................ . . . . . . . . ........ Scott Sutherland, President Michael Schaeffer, Vice President mm