09-Deliberate and act on a Resolution approving the PEDC Resolution authorizing the Amended Promissory Note and Second Addendum to Security Agreement between Paris Pkg.and Paris Economic Dev. Corp.

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Otiginating Department: Presented By: Agenda Item No.: 6/22/2010 Council Date: Finance Gene Anderson 9. 6/28/2010 RECOMMENDED MOTION: Move to approve a resolution validating the PEDC resolution amending the promissory note and security agreement between Paris Packaging, Inc. and Paris Economic Development Corporation. PoLICY ISSUE(s): Fiscal management. In 1998, PEDC issued $4.2 million worth of sales tax revenue bonds. The proceeds of these bonds were loaned to Paris Packaging, Inc as part of an incentive package. At the time of the loan a separate loan and security agreement were entered into between Paris Packaging, Inc. and PEDC. The 1998 bond issue was refunded for savings by PEDC in 2010. The PEDC Board voted to pass along the full dollar savings of the refunding to Paris Packaging, Inc. by amending the promissory note with Paris Packaging to lower the interest rate of the note but leaving the final maturity date the same. The dollar savings from the refunding amounted to $276,572. The interest rate on the note is being changed from 7.00% to 3.55°Io resulting in savings to Paris Packaging equal to the savings from the bond refunding. BOARD/ COMMISSION RECOMMENDATION: None EXHIBITS: Resolution ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $NA ❑ Department Report Z Resolution Budgeted Amt. $NA ❑ Presentation ❑ Ordinance yTD Actual $NA ❑ Public Hearing ❑ Other Acct. Name NA Acct. Number NA FISCAL NOTES: None REVIEWED AND APPROVED BY: Z Administration ❑ City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire ❑ Municipal Court Z Legal ❑ Libraty ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris C~ Revised 2/04/08 ~Y