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BM 1997-02-25 EcDevCOPPELL ECONOMIC DEVELOPMENT PARTNERSHIP SPECIAL CALLED MEETING FEBRUARY 25, 1997 The Coppell Economic Development Partnership met at 7:30 a.m. on Tuesday morning, February 25, 1997 in a special called meeting, at Coppell Town Center, 2nd floor conference room, 255 Parkway Boulevard, Coppell, Texas. The following were present: Tim Brancheau, Chad Beach, Debbie Cook, Mary Ann Kellum, Isabelle Moro, Pat Murphy, Ron Pankey, Dixon Rich, Gary Sieb, Bill Stearman, and Mayor Tom Morton. Also in attendance were Dan Vander Sander and Stuart Smith. 1. Call to Order Chauman Ron Pankey called the special called meeting to order at 7:35 a.m. 2. Review of Tax Abatement Application: Derse Exhibits Chairman Pankey turned the formal presentation over to Stunt Smith of Fults Oncor Real Estate Services, who introduced Mr. Daniel J. Vander Sanden of Derse Exhibits. Mr. Vander Sanden who permnaily owns 36% of the company, then proceeded to explain the operation of the Derse Company --a convention exhit its firm --and the reason for their tax abatement request. He outlined the rapid growth of the company, and staged that they were located in Milwaukee (their home office), and Racine, WI., and Grand Rapids, MI. They also had a small office in Las Vegas, NE. He went on to state that the company had opened a Dallas area office (Carrollton) approximately 8 months ago and had already outgrown their leased space, hence, the possibility of relocating to Coppell. He further stated that their proposed development would initially be a 105,000 square foot building containing about 10,000 feet of office space with expansion to 165,000 total square feet, probably within the next three years, if not sooner. The site in Copped was an approximate 10 acre parcel, located at the northeast corner of Royal Lane and Creekview Drive. Mr. Vander Sanden also stated that the company would own the budding and Land outright. In addition, the company was very much interested in this site, and had meet with staff on Monday to discuss the development review process as well as explain the potential development plan. He also recognized that the company did not meet the generally accepted $5.5M minimum threshold for tax abatement approval (the application stated a $3.5 M initial investment) but suggested that with the potential expansion of the facility approximating an additional $1.5 M (provided business remained as solid as it is today), they would come very close to the threshold. He went on to state that recognition of the community might be enhanced because of the clients of his company which included Frito-Lay, Kohler Industries, and Loftland Tile, among others. He conclude by noting that the manager of this facility was building a home in Coppell, thus adding to the attractiveness of the City. After a series of questions from the Partnership which focused on the site, the possible expansion, debt owed by the company, ownership breakdown, and a series of other discussion items, the Chairman thanked Mr. Vander Sanden and Mr. Smith and excused them from the meeting at approximately 8:15 a.m. After considerable discussion revolving around the application, Mr. Vander Sanden's presentation, the tax abatement numbers, the feasibility of possible expansion of the business, and several questions directed to staff regarding this business, the Partnership took the following action: It was moved by Bill Stearman, seconded by Pat Murphy that the Partnership recommend to the City Council that Derse Exhibits be granted a 50% tax abatement for five years. If an additional building permit to expand the facility to a total of approximately 165,000 square feet is procured within two years of the initial abatement, and the addition is completed within two and one-half years of the initial abatement, the Partnership further recommends that the remaining abatement offered would be increased to 75 %. The motion passed unanimously. It was then moved by Bill Roloff, seconded by Bill Stearman that any sates tax rebate request be handled m the same manner as earlm requests. Specifically, any sales tax generated in excess of $150,000 per year would be- side -red by the Partnership for rebate ap-1io tioe9 anything less would not meet favorable cAnsa cae. The motion passed unanimously. 3. General. Discussion and Other Business The Chairman noted that a regular meeting would be held on Wednesday, March 5, 1997 at 7:00 p.m., second floor conference room of Town Center to discuss a variety of economic development issues including additional information regarding Derse Exhibits, the Partnership bylaws, and other topics. The spacial called meeting was adjourned at 8:30 a.m. 3 ' "` ' COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP INOSPECIAL CALLED MEETING FEBRUARY 25, 1997 The Coppell Economic Development Partnership met at 7:30 a.m. on Tuesday morning, February 25, 1997 in a special called meeting, at Coppell Town Center, 2nd floor conference room, 255 Parkway Boulevard, Coppell, Texas. The following were present: Tim Brancheau, Chad Beach, Debbie Cook, Mary Ann Kellum, Isabelle Moro, Pat Murphy, Ron Pankey, Dixon Rich, Gary Sieb, Bill Stearman, and Mayor Tom Morton. Also in attendance were Dan Vander Sanden and Stuart Smith. 1. Call to Order Chairman Ron Pankey called the special called meeting to order at 7:35 a.m. 2. Review of Tax Abatement Application: Derse Exhibits Chairman Pankey turned the formal presentation over to Stuart Smith of Fults Oncor Real Estate Services, who introduced Mr. Daniel J. Vander Sanden of Derse Exhibits. Mr. Vander Sanden who personally owns 36% of the company, their proceeded to explain the operation of the Derse Company --a convention exhibits firm --and the reason for their tax abatement request. He outlined the rapid growth of the company, and staged that they were located in Milwaukee (their home office), and Racine, WI. , and Grand Rapids, MI. They also had a small office in Las Vegas, NE. He went on to state that the company had opened a Dallas area office (Carrollton) approximately 8 months ago and had already outgrown their leased space, hence, the possibility of relocating to Coppell. He further stated that their proposed development would initially be a 105,000 square foot building containing about 10,000 feet of office space with expansion to 1659000 total square feet, probably within the next three years, if not sooner. The site in Coppell was an approximate 10 acre parcel, located at the northeast corner of Royal Lane and Creekview Drive. Mr. Vander Sanden also stated that the company would own the building and land outright. In addition, the company was very much interested in this site, and had meet with staff on Monday to discuss the development review process as well as explain the potential development plan. He also recognized that the company did not meet the generally accepted $5.5M minimum threshold for tax abatement approval (the application stated a $3.5 M initial investment) but suggested that with the potential expansion of the facility approximating an additional $1.5 M (provided business remained as solid as it is today), they would come very close to the threshold. He went on to state that recognition of the community might be enhanced because of the clients of his company which included Frito-Lay, Kohler Industries, and Loftland Tile, among others. He conclude by noting that the manager of this facility was building a home in Coppell, thus adding to the attractiveness of the City. of questions from the Partnership which focused on the site, the possible *,nes , debt owed by the company, ownership breakdown, and a series of other items, the Chairman thanked Mr. Vander Sanden and Mr. Smith and excused `4 then from the meeting at approximately 8:15 a.m. 4Sti After considerable discussion revolving around the application, Mr. Vander Sanden, s Presentation, the tax abatement numbers, the feasibility of possible expansion of the business, and several questions directed to staff regarding this business, the Partnership took the following action: It was moved by Bill Stearman, seconded by Pat Murphy that the Partnership recommend to the City Council that Derse Exhibits be granted a 50% tax abatement for five years. If an additional building permit to expand the facility to a total of approximately 165,000 square feet is procured within two years of the initial abatement, and the addition is completed within two and one-half years of the initial abatement, the Partnership further recommends that the remaining abatement offered would be increased to 75%. The motion passed unanimously. It was then moved by Bill Roloff, seconded by Bill Stearman that any sales tax rebate request be handled in the same manner as earlier requests. specifically, any sales tax generated ,in excess of $150,000 per year would be considered by the Partnership for rebate application, anything less would not meet favorable consideration. Thi )a"on passed unanimously. 3. General Discussion and Other Business The Chairman noted that a regular meeting would be held on Wednesday, March 5, 1997 at 7:00 p.m., second floor conference room of Town Center to discuss a variety of economic development issues including additional information regarding Derse Exhibits, the Partnership bylaws, and other topics. The special called meeting was adjourned at 8:30 a.m. Respectfully submitted, Gary L. Sieb, Acting Secretary econ297