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<br />RESOLUTION 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 1998; retain Southwest
<br />Securities as bond counsel for the 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 />PEDe's needs; and,
<br />
<br />WHEREAS, the City Council of the City of Paris did heretofore, on the 29th day of June,
<br />1998, by motion reflected in the minutes, approve said PEDC Resolution No. 98-008; and,
<br />
<br />WHEREAS, the PEDC did heretofore, on the 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 PEDC,
<br />authorize the borrowing of $4,000,000.00 from a local financial institution or institutions;
<br />authorize the President of the PEDC to execute a loan agreement and any and all documents
<br />necessary to finalize the same and bind the PEDC thereto, with the forms of all such documents
<br />being first approved by the City Attorney, Scott P. Foster; and, pledge its one-quarter (1/4) cent
<br />economic development sales tax to the repayment of said loan, 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) year period based on a twenty (20) year amortization
<br />schedule; and,
<br />
<br />WHEREAS, it is deemed appropriate that the City Council approve said Resolution No.
<br />98-010; NOW, THEREFORE,
<br />
<br />BE IT RESOLVED BY THE CITY COUNCIL O.~ THE CITY OF PARIS, that:
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<br />1. The Resolution adopted by the PEDC on July 10, 1998, including the documents
<br />(substantially in the form attached hereto as Exhibit A) securing the Sales Tax Loan from
<br />Liberty National Bank in the amount of $4,000,000 for this 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 (the "Project") is for the specific purpose of
<br />the promotion and encouragement of employment and the public welfare.
<br />
<br />2. The City of Paris further approves this Project and finds that the Sales Tax Loan of
<br />$4,000,000 with the proceeds to be loaned to Paris Packaging, Inc. is in furtherance of the
<br />purpose of Article 5190.6, Section 4A, V.A.T.C.S. for the promotion of development and
<br />expansion of manufacturing and industrial facilities for the benefit of the City of Paris.
<br />
<br />3. The City of Paris, in addition, approves the Commitment Letter between PEDC and Paris
<br />Packaging, Inc. (attached hereto as Exhibit B), and does hereby affirm that the City has,
<br />through its control of the PEDC, sufficient power to control this Project and to insure that
<br />Paris Packaging, Inc. will acquire and operate the Project as long as the loan is
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