So I updated the SDK via SDK Manager.exe and still did not solve this problem. When I looked at the adb Android documentation it says
When you connect a device running Android 4.2.2 or higher to your computer, the system shows a dialog asking whether to accept an RSA key that allows debugging through this computer. This security mechanism protects user devices because it ensures that USB debugging and other adb commands cannot be executed unless you're able to unlock the device and acknowledge the dialog. This requires that you have adb version 1.0.31 (available with SDK Platform-tools r16.0.1 and higher) in order to debug on a device running Android 4.2.2 or higher.
When i checked my adb version after updating, it was still 1.0.29, strange somehow it did not download 1.0.31. So I downloaded the latest tool set from http://developer.android.com/sdk/index.html and copied the platform-tools folder to my existing folder and I did "adb version" and got 1.0.31. Now when I tried "adb devices" still not getting the device. Finally I unplugged the USB cable and re-connected and It worked.
Make sure to check "trust this computer" so it will save the settings.