12 - Direction to Staff - loan from City of Paris to the PEDC

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Item No. 12 Memorandum TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Loan from the City of Paris to PEDC DATE: April 12, 2021 BACKGROUND: At previous meetings, both the City Council and the Board of Directors of the PEDC authorized staff to move forward on a loan from the city to the PEDC to retire all or some of PEDC's existing debt. STATUS OF ISSUE: I am working with Casey Gain, attorney for the PEDC, to put together documents to effectuate the Council's and the Board's intent. The question has arisen as to whether this is to be an unsecured demand note or a secured note. After speaking with Mr. Gain, we have determined that the best way to secure the note would be to take a position in the land owned by PEDC, which would become a first position when the existing debt is paid off and those liens are extinguished. BUDGET: N/A RECOMMENDATION: Provide direction to staff as to whether this note should be secured or unsecured.