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Regular Council Meeting July 24, 2017 Page 6 Mayor Clifford said the PEDC was created almost 24 years ago with the hope and promise of fostering economic development in Paris, and that many in the community did not believe this organization had been effective. Mayor Clifford also said the PEDC collected and spent roughly $1.2 Million Dollars in sales tax revenue each year. Mayor Clifford stated some were very disappointed with the results towards economic development, some suggested that the City of Paris try a different model for economic development, and others proposed diverting a part or even all of that $1.2 Million Dollars to streets and roads which were in need of repair. During the almost quarter of a century that the PEDC had been in existence, Mayor Clifford said the citizens of Paris had never been asked whether or not they wished to continue funding PEDC with their tax dollars. He explained some of the people living here 24 years ago were no longer living in Paris, and new people to community over the last 24 years had not been allowed to vote on this. In response to these citizens, Mayor Clifford said the City Council passed a motion mandating a ballot initiative redirecting the revenue from the PEDC to street and road repair. He cited concerns raised by Council Members Knox and Portugal, as well as concerns raised by the public. Mayor Clifford emphasized that neither he, nor anyone else on the City Council wanted to stop economic development in Paris and then said he wished to propose a compromise regarding economic development and improvement of streets and roads. Mayor Clifford proposed that the City Council approve the ballot language as presented which would, if approved by the citizens, would cease funding of the type A EDC and divert the approximately $1.2 Million Dollars to street and road repair. He further proposed that the $600,000 the City currently spent on street materials, road and bridge repairs be redirected toward establishing a program of economic development as defined by Chapter 380 of the Texas Local Government, if the citizens approve the ballot initiative. Mayor Clifford explained by doing this, they would be reserving $600,000 for economic development while doubling the amount of money spent on roads. Mayor Clifford explained in detail that the Chapter 380 program was more flexible than either a type A or type B EDC. He said there must also be safeguards and controls to insure that the public purpose is carried out and more specifically, all economic development projects must be approved by the City Council. He also explained that overhead and administrative costs relating to economic development should be substantially reduced which would increase the amount of money available for economic development. Mayor Clifford said an economic development director could be hired who would report to the City Manager, annual reports could be required, and metrics could be set up to define success. He also said having this type of economic development program, would allow the City to offer incentives of all types to new and existing businesses when appropriate to encourage economic development. Council Member Drake said as she was thinking about what was right for the citizens of Paris and after listening to everyone, she felt the community should have the right to vote on this. She said they did need economic development of some type, but that times had changed in the last 24 years. She said she was in favor of passing this tonight. She also said she was all for economic development.