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RESOLUTION N0. ,2221- 053 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, <br />APPROVING A LOAN IN THE AMOUNT OF TWO MILLION FIVE HUNDRED <br />THOUSAND DOLLARS AND NO/100 ($2,500,000.00) TO THE PARIS <br />ECONOMIC DEVELOPMENT CORPORATION; APPROVING A PROMISSORY <br />NOTE REGARDING SAID LOAN; AUTHORIZING THE MAYOR TO SIGN <br />PROMISSORY NOTE; MAKING OTHER FINDINGS AND PROVISIONS RELATED <br />TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. <br />WHEREAS, the Paris Economic Development Corporation (PEDC) is a non-profit <br />economic development corporation formed by the City of Paris in 1993 pursuant to Chapters <br />501 and 504 of the Texas Local Government Code and after said formation was approved by the <br />registered voters of the City of Paris 1993; and <br />WHEREAS, the PEDC and the City cooperate to encourage and foster economic <br />development within the City; and <br />WHEREAS, the PEDC currently has outstanding indebtedness and needs additional cash <br />flow for future projects and potential land acquisitions; and <br />WHERAS, the City currently has funds in cash reserves available to lend to the PEDC <br />which will reduce the PEDC's interest rate for the repayment of its indebtedness and give it <br />additional funds for future projects and potential land acquisitions; and <br />WHEREAS, furthermore, by loaning funds to the PEDC, the City can realize a greater rate <br />of return on its funds than it could by leaving said funds in the accounts in which they are <br />currently placed; and <br />WHEREAS, the Council of the City of Paris, Texas finds that it will be in the best interest of <br />both the City and the PEDC to loan the PEDC the sum of TWO MILLION FIVE HUNDRED <br />THOUSAND DOLLARS AND N0/100 ($2,500,000.00) for a ten year term at the initial interest <br />rate of 2.14%; <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, <br />TEXAS: <br />Section 1. That the findings set out in the preamble of this resolution are hereby in all <br />things approved. <br />Section 2. That the City Council hereby approves a loan to the PEDC in the amount of <br />TWO MILLION FIVE HUNDRED THOUSAND DOLLARS AND N0/100 ($2,500,000.00) for a ten <br />year term at the initial interest rate of 2.14% in accordance with the terms of the Promissory <br />Note attached hereto as Exhibit A and incorporated herein by reference, which Promissory Note <br />the City Council also hereby approves. <br />