1998-11-09-PEDC - Laserfiche WebLink

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390 RESOLUTION AUTHORIZING THE ISSUANCE OF TAXABLE SALES TAX REVENUE BONDS, SERIES 1998, PROVIDING FOR THE SECURITY OF THE BONDS, AND ALL OTHER AUTHORIZATIONS AS NECESSARY, INCLUDING SALES TAX REMITTANCE AGREEMENT, AND ALL OTHER MATTERS RELATED THERETO THE STATE OF TEXAS § PARIS ECONOMIC DEVELOPMENT CORPORATION § WHEREAS, the City Council of the City of Paris, Texas (the "City"), a town located partially in a county with a population of 500,000 or fewer according to the most recent federal decennial census, called an election for thc purpose of receiving authority to levy a sales and use tax for the benefit of an industrial development corporation created under authority of thc Development Corporation Act of 1979, Article 5190.6, V.A.T.C.S., as amended (the "Act"), all pursuant to the provisions of Section 4A of the Act; and WHEREAS, at an election held on May 1, 1993 a majority of the citizens of the City voting at said election authorized thc City to levy a sales and use tax on the receipts at retail of taxable items within the City at a rate of one-quarter of one percent; and WHEREAS, pursuant to the provisions of the Act, the City created the Paris Economic Development Corporation (the "Issuer"), a nonstock, nonprofit industrial development corporation created to act on behalf of the City to satisfy thc public purposes set forth in the Act; and WHEREAS, for the purpose of promoting and encouraging employment and the public welfare, the Issuer desires to refund a note entered into by the Issuer on July 15, 1998 with Liberty National Bank in the original principal amount, of $4,000,000 ("Note") which pledged the sales tax for security, which note was incurred in order to loan the proceeds to Paris Packaging, Inc. for the acquisition of Precision Packaging Plant in Paris, Texas which was to be closed with a loss of jobs unless this acquisition was accomplished in accordance with the Act; and WHEREAS, the Issuer has entered into a Development Contract dated as of July 15, 1998 with Paris Packaging, Inc. by which Paris Packaging, Inc. agrees to maintain a specified amount of employees with the manufacturing facility located at Paris, Texas in order to prevent thc loss ofjobs; and WHEREAS, such Note is subject to prepayment at any time and will be retired upon the delivery date of the Bonds; and WHEREAS, in accordance with thc provisions of Section 4A of thc Act, the City shall timely transfer to the Issuer the proceeds of the aforesaid sales and use tax, in accordance with the terms and conditions of that certain sales Tax Remittance A. greement, dated as of December 1, 1998, between the City and the Issuer; and 1