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<br />7-21-1998 8:39AM
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<br />FROM CITY (F PARIS 903 785 8519
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<br />P.2
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<br />: EXHIBIT A
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<br />RF..50LUTION NO. 98-101
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<br />WHEREAS, the Paris Economic Development Corporation (PEDC) did heretofore, on '
<br />the 29th day of June, 1998, in Resolution No. 98-008, authorize the initiation of the process of
<br />issuing approximately $4,000,000.00 in Sales Tax Revenue Bonds, Series t 998; retain Southwest
<br />Securities as bond counsel for tlle same; request the City Attorney to procure bond counsel for the
<br />same; and, in the alternative, authorize the seeking of financing in a means that best suits the
<br />PEDC's needs; and,
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<br />WHEREAS, tlle City Council of the City of Paris did hererofore. on the 29th day of June,
<br />1998, by motion reflected in the minutes, approve said PEDe Resolution No. 98-008; and,
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<br />WHEREAS, tlle PEDe did heretofore, on rhe 10th day of July, 1998, in Resolution No.
<br />98~010, passed and adopted in accordance with Section 5.06 of the Bylaws of the PEDe,'
<br />authorize the borrowing of $4,000,000.00 from a local financial institution or institutions;
<br />authorize the President of the PEDe to execute n loan agreement and any and all docu~ents
<br />necessary to finalize the same and bind the PEDC therero. with the forms of all such documents
<br />being first approved by the City Attorney, Scott P. Foster; and. pledge its one-quartcr (1/4) cent
<br />economic development sales tax to the repayment of said 10<'\11. with said note bearing interest in
<br />an amount not to exceed seven percent (7%) per annum and being payable to the financial
<br />institution or institutions over a five (5) Y~'lr period based on a twenty (20) year amortization
<br />. schedule; and,
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<br />WHEREAS, it is deemed appropriate that the City Council approve said Resolution No.
<br />98-010; NOW, THEREFORE,
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<br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, that:
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<br />I. The Resolution adopted by the PEDe on July 10, 1998, including the documents
<br />(substantially in the fonn attached hereto as Exhibit A) securing the Sales Tax Loan from
<br />Liberty National Bank in the amount of $4,000,000 for U,is project to be used for the
<br />purpose of loaning monies to Paris Packaging, Inc., which is hereby approved, will be
<br />applied to the purchase of the Precision' Printing Plant, which plant would be closed unless
<br />this acquisition is accomplished and that this (lhe "Project") is for the specific purpose of
<br />the promotion and encouragement of employment and the public welfare.
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<br />2. The City of Paris further approves this Project and finds that the Sales Tax Loa~l of '
<br />$4,000,000 with the proceeds to be loaned to Paris Pac~'lging. Inc. is in ~urtherance of the
<br />purpose of Article 5190.6. Section 4A, V.A.T.C.S. for tlle promotion of development and
<br />expansion of manufacturing and industrial facilities for the benefit of U'e City of Pans.
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<br />3. The City of Paris, in addition, approves Lhe Commitment Letter between PEDC and Paris
<br />'Packaging,..Inc. (attached hereto as Exhibit B), and doe~ hereby affirm that the City has,
<br />through its control of the PEDe, sufficient power to control this Project and to insu're that
<br />Paris Packaging, rnc. will acquire and operate the Project as long a~ the Joan is
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