McKINNEY ECONOMIC DEVELOPMENT CORPORATION by aj4VO0

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									     McKINNEY ECONOMIC DEVELOPMENT CORPORATION                                               07-391
                     REGULAR BOARD MEETING
                                   May 17, 2007
         The McKinney Economic Development Corporation met on Thursday, May 17,
2007, at 8:10 a.m. in the Dowdy Boardroom of the Corporation office. Board members
present were Chairman Ray Ricchi, Vice-Chairman Stan McWilliams, Secretary-
Treasurer Rick Franklin, Director Laurie Clegg and Director Steven O’Neill. Ex-officio
member present was Thad Helsley with Michael Puhl absent.
         Staff present was President & CEO David Pitstick, Director of Business
Development Jim Young, Director of Marketing Chris Potter, Administrative Assistant
Durinda Fisher and Corporation Attorney Jeff Moore.
         The Board reviewed the minutes from the Regular Board Meeting of April 19
2007, and minutes from the Strategic Planning Meeting of April 26, 2007. On a motion
by Rick Franklin, seconded by Stan McWilliams, the April 19, 2007 minutes were
approved. On a motion by Stan McWilliams, seconded by Laurie Clegg, the April 26,
2007, minutes were approved. Both motions carried.
         The Board next reviewed the Consent Items. Ms. Fisher reported on the month’s
check requests. Payments were made to RMCN Credit Services for the relocation and
installation of new equipment to their offices located at the building previously owned by
Diebold. A payment was made to Jacobs Consultancy for MEDC’s portion of the CCRA
Feasibility Study. Assistant Finance Director, Jason Weeks, reviewed the April 2007
balance sheet and operating statements. The sales tax receipts for April were up 18%
compared to the previous year. May sales tax receipts were $783,132. Vice-Chairman
Stan McWilliams inquired about the interest income amount. Mr. Weeks advised that
the MEDC had recently purchased a $1 Million Certificate of Deposit with money from
interest earned. Jim Young reported on the RMCN project and that Blue Mountain
Equipment had accepted the MEDC’s offer and plan to stay in McKinney. On a motion
by Stan McWilliams, seconded by Rick Franklin, the Consent Items were approved.
Motion carried.
         Chris Potter gave the Marketing Report. The MEDC spring newsletter featuring
the relocation of Erchonia, RMCN’s expansion and several other projects is being
published. It will be mailed out to McKinney citizens and to our Metroplex allies. Area
brokers and developers were mailed the new aerial map packets upon requests
generated by phone and e-mail inquires. Several companies have been contacted to
provide quotes on bronze or metal plaques for placement on MEDC funded projects.
McKinney’s local company, Brandon Industries, is one company that has placed a bid for
the project. Depending on the project, the plaques would be displayed on the outside of
the building or in the lobby of the company. Director McWilliams praised developer Don
Day for the excellent job in the completion of the Grand Hotel on McKinney’s Square. A
new brochure was produced by O&S Holdings to promote the McKinney Bridge Street
project.
         David Pitstick gave his President’s Report. Staff has had several conference
calls with Jon Roberts with TIP Strategies regarding the final draft of the MEDC Strategic
Plan. The report will provide direction as well as identify new target markets. The
Bridge Street project has been featured in several articles in the local papers. O&S
Holdings plans to have all of the Bridge Street property purchased by the end of the
year. Mr. Pitstick and Director Rick Franklin will be attending the ICSC Conference in
Las Vegas next week. Retail brokers across in the country attend the conference.
Director Steve O’Neill suggested taking marketing materials to the conference to
promote McKinney. O&S Holdings will have a booth at the conference to display such
materials.
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          The Board next heard the Liaison’s Reports:
          Jeannie Lester, BREP Director, reported that thirty people attended the Business
Development meeting and reviewed the Development Services packet for the city. Ms.
Lester works closely with the area companies regarding labor market information to
make sure the companies are competitive in the market. Chairman Ricchi expressed
that the BREP program needs more exposure to the local companies informing them
that it is available.
          City Councilman Thad Helsley reported that city staff is in Washington, D.C.
promoting CCRA with plans to meet with the FAA. Council has been busy preparing the
FY 2007-2008 Budget. The city had no election in May. Council approved the hangar
project of CCHOA.
          John Sowerby, CCRA Board member, reported that the airport is seeking
additional funding from the MEDC for the Feasibility Study. Bids are being collected for
the resurfacing of the runway and negotiations are not complete concerning the tenants
and the closing of the runway. The entrance of the airport may be widening. President
Pitstick added that the work being done on the southern loop road that encircles FM 546
will open up more developable land around the airport.
          McKinney ISD Board member, Michael Puhl, reported that Judy Poe was elected
to the school board replacing Betty Petkovsek who did not seek re-election. There will be
133 new teachers hired for the 2007-2008 school year with approximately 23,000
students enrolled which will be an 8 to 9 percent increase from last year. Construction
continues at Boyd High School to complete all the phases. Many graduations and choir
concerts will take place in the next few weeks.
          Ray Eckenrode, MCDC Board member, reported that a ten-year anniversary
brochure is being developed. A meeting was held with MPAC regarding their operating
budget for the coming year.
          The Board was introduced to Paul Pogue, Randy Pogue and Ben Pogue
representing Prospect #07-07. The company formed in 1979 and moved to McKinney in
1991. The company has outgrown their current location and is interested in buying
approximately 5.8 acres owned by the MEDC in University Business Park. The project
would be combining their three companies into one location for their headquarter offices.
The new facility would be a 20-30,000 square foot 2-story building. Groundbreaking
would take place by the end of 2007 with a completion date of ten to eleven months.
          The Board was next introduced to Jeff Pool representing Project #07-12. The
company manufacturers’ food service equipment used in commercial and charter
aircraft. To manufacture the products, FAA guidelines must be followed and the projects
must be certified by the FAA. The building must also be approved by the FAA. The
company currently has 21 employees but plans to hire up to 50 employees after the
move and expansion. The company now has 17,000 sf and would expand to 49,000 sf
at a new location under contract on Elm Street.
          Karen Klassen, Melvin Fain and Garry Jones next presented Project #07-11 to
the Board. The project involves a move from the current location in downtown McKinney
to a larger building that Ms. Klassen owns. It was questioned how the MEDC could
legally assist the project. The building is currently appraised at $650,000 but with the
anticipated upgrades the new appraised value could be $1,000,000.
          In accordance with TXE GOV’T CODE ANN. S 551.071 et. seq. the meeting was
adjourned into executive session at 10:02 a.m. The Board adjourned out of executive
session into open session at 11:30 a.m.
          The Board next reviewed the Action Items.
          The Board discussed Project #05-22. On a motion by Stan McWilliams,
seconded by Laurie Clegg, the Board approved to extend the project’s receipt of a
certificate of occupancy from December 31, 2006 to June 30, 2007, a six month

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extension. Motion carried.
         The Board next reviewed Project #06-09. On a motion by Steven O’Neill,
seconded by Rick Franklin, the Board approved to extend the project’s receipt of a
certificate of occupancy from December 31, 2006 to June 30, 2007, a six month
extension. Motion carried.
         The Board reviewed Project #06-18. On a motion by Steven O’Neill, seconded
by Stan McWilliams, the board tabled the project for further review at the next regular
scheduled Board meeting. Motion carried.
         The Board discussed Project #07-07. On a motion by Stan McWilliams,
seconded by Laurie Clegg, the Board approved the following:
         (A) MEDC will reimburse the company up to $200,000 in expenses incurred for
             Impact Fees and other infrastructure related expenses associated with the
             development of the facility.
         (B) Upon receiving the CO (prior to December 31, 2008) the company will apply
             for reimbursement and submit all invoices relating to said expenses.
         (C) Upon reaching a CAD Valuation of $4.2MM (or rendering same) (excluding
             land) in 2009, Jersey would be eligible for the first $100,000 incentive. The
             second incentive of $50,000 would be predicated on the 2010 valuation
             being $6.25MM. The third $50,000 incentive would require a $7.6MM
             valuation in 2011.
         (D) MEDC requests the building substantially match the site plans shown to the
             Board on April 19, 2007.
             Motion carried.
         The Board next reviewed Project #07-10. On a motion by Rick Franklin,
seconded by Steven O’Neill, the Board approved the following:
         (A) MEDC to sell the company 5.8 acres at the northeast corner of Bray Central
              Drive and Corporate Drive at $1.50 a square foot.
         (B) MEDC can buy back at $1.50 a square foot if construction has not begun
              within one (1) year. Company cannot sell to a third party without the
              MEDC’s approval.
         (C) Survey of the property will be at buyer’s expense, to be credited to buyer at
              closing.
         (D) A minimum assessed value of $20 million to be rendered to Collin CAD on
              January 1, 2010.
         (E) MEDC requests the project substantially match the site plans shown to the
              Board on May 17, 2007.
              Motion carried.
         The Board next reviewed Project #07-11. On a motion by Laurie Clegg,
seconded by Rick Franklin, the Board approved the following:
         (A) MEDC to reimburse the company up to $10,000 in eligible infrastructure
              expenses incurred in the development of the facility.
         (B) Upon receiving the CO (prior to December 31, 2007) the company will
              apply for reimbursement and submit all invoices relating to said expenses.
         (C) The offer is contingent upon the completed building having an increased
              value of at least $200,000 as evaluated by the Collin County Tax Appraisal
              District (including both Real and Business Personal Property, but excluding
              land) on January 1, 2008.
              Motion carried.
         The Board next reviewed Project #07-12: On a motion by Steven O’Neill,
seconded by Stan McWilliams, the Board approved the following:
         (A) MEDC to reimburse the company up to $150,000 in expenses incurred
              associated with the development of the new facility.

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       (B)   Upon receipt of the CO (prior to December 31, 2007) the company will
             apply for reimbursement and submit all invoices relating to said expenses.
       (C) The offer is contingent upon the property having an increased value of at
             least $2,000,000 as evaluated by the Collin County Tax Appraisal District
             (including both Real and Business Personal Property, but excluding land)
             on January 1, 2008.
             Motion carried.
       The Board requested that the Action Item of refunding and/or issuing of new
bonds be rescheduled for the next Board meeting.
       The Board reviewed the upcoming dates for next several Board meetings. The
June Board meeting will be on June 21st, the July Board meeting will be moved to July
12th and on Monday, August 20th, the TIP Strategic staff will present their MEDC
Strategic Plan to the City Council Work Session starting at 5:00 p.m.
       There being no further business, the meeting adjourned at 11:45 a.m. on a
motion by Rick Franklin, seconded by Laurie Clegg.



                                    RICK FRANKLIN
                                    MEDC SECRETARY/TREASURER




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