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PEDC Board Meeting Minutes September 18, 2018 Page 3 of 4 business park took shape, it was decided to incorporate this purchase into the loan from the Local Banks. Mr. Terry Neeld, Executive Vice -President of Lamar National Bank came to the Board with the details of the loan. Mr. Neeld stated the financing would be split between five banks with each bank taking a share of the $2,100,000.00. The first part would be done as a construction loan for six to nine months which gives the PEDC time to have the construction completed. At the end of nine months the loan would be rolled into a permanent loan with a fifteen year term. The interest rate on the loan would start at 3.75% fixed for five years. Starting in the sixth year the interest would be Wall Street Journal Prime Rate minus 1.5%. This rate would be adjusted yearly with a 2% annual cap on the interest rate and a 5% cap for the life of the loan. The interest rate would never be more than 8.75% in the life of the loan. Mr. Hamill made a motion to approve giving the authority to move forward with the loan arrangement as described. Mr. Hernandez seconded the motion. Vote was 4 -ayes to 0 -nays. Discuss and possibly approve purchase of South Loop property for New Business Park. Mr. Paris told the Board we made a mistake putting this on the agenda. This item was approved at the last monthly meeting. Discussion and possibly approve Budget Amendments for the 2017-2018 Budget. Mr. Hernandez spoke about the budget amendments for 2017-2018. The Personnel expenses are increasing by $7,000.00 mostly for the increase of Insurance Benefits. Our insurance rerate occurs each year with the March payment. Mr. Paris pointed out the $7,000.00 we put into the Personnel budget was taken out of the Administration budget. Mr. Hernandez told the Board that our total operating expenses did not change. Mr. Paris went on to the Job Training expenses saying that the budget will be increased because of the $25,000.00 High Demand Job Training Grant we paid. Direct Business Incentives show: Paris Lakes did not receive a $250,000.00 incentive, BodyGuard was paid last September before the new budget started, Potters was in the budget and was paid out, and Daisy Dairy did not qualify for the $94,900.00. We increased the budget because of the incentives offered to Campbell's and J. Skinner. The Debt Service did not have any changes and this was the last year to pay on the Bond. Under Capital Expenses we show the purchase of Superior Switch and the funds used to prepare for American SpiralWeld. The budget increase for the year is $752,277.97 making the Total Amended Budget $1,953,953.97. Mr. Hernandez made a motion to approve the 2017-2018 budget amendments. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 -nays. Executive Director's Monthly Report. • The TEDC Fall Conference is coming up. • The TEAM Texas Road Show was in Atlanta. We participated in thirteen meetings, made twenty contacts with decision makers, and have followed up with two of the contacts. • We will be participating with Oncor in FABTECH which is taking place in Atlanta this November. • The land purchase for a new business park will be presented to City Council on Monday night. • Dr. Hashmi made the recommendation that we visit with PepsiCo executives in New York. An appointment has been set for November.