33 - Approving a loan from the City of Paris to the Paris Economic Development Corpation in the amount of $2.5 million

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RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING A LOAN IN THE AMOUNT OF TWO MILLION FIVE HUNDRED THOUSAND DOLLARS AND NO/100 ($2,500,000.00) TO THE PARIS ECONOMIC DEVELOPMENT CORPORATION; APPROVING A PROMISSORY NOTE REGARDING SAID LOAN; AUTHORIZING THE MAYOR TO SIGN PROMISSORY NOTE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the Paris Economic Development Corporation (PEDC) is a non-profit economic development corporation formed by the City of Paris in 1993 pursuant to Chapters 501 and 504 of the Texas Local Government Code and after said formation was approved by the registered voters of the City of Paris 1993; and WHEREAS, the PEDC and the City cooperate to encourage and foster economic development within the City; and WHEREAS, the PEDC currently has outstanding indebtedness and needs additional cash flow for future projects and potential land acquisitions; and WHERAS, the City currently has funds in cash reserves available to lend to the PEDC which will reduce the PEDC's interest rate for the repayment of its indebtedness and give it additional funds for future projects and potential land acquisitions; and WHEREAS, furthermore, by loaning funds to the PEDC, the City can realize a greater rate of return on its funds than it could by leaving said funds in the accounts in which they are currently placed; and WHEREAS, the Council of the City of Paris, Texas finds that it will be in the best interest of both the City and the PEDC to loan the PEDC the sum of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS AND NO/100 ($2,500,000.00) for a ten year term at the initial interest rate of 2.14%; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble of this resolution are hereby in all things approved. Section 2. That the City Council hereby approves a loan to the PEDC in the amount of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS AND NO/100 ($2,500,000.00) for a ten year term at the initial interest rate of 2.14% in accordance with the terms of the Promissory Note attached hereto as Exhibit A and incorporated herein by reference, which Promissory Note the City Council also hereby approves.