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RESOLUTION NO. 2010-069
<br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
<br />APPROVING THE PEDC RESOLUTION AUTHORIZING THE FIRST
<br />AMENDED RENEWAL AND EXTENSION PROMISSORY NOTE AND SECOND
<br />ADDENDUM TO THE SECURITY AGREEMENT BETWEEN PARIS
<br />PACKAGING, INC. AND PARIS ECONOMIC DEVELOPMENT CORPORATION
<br />(PEDC), TO REFLECT A LOWER INTEREST RATE; MAKING OTHER
<br />FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
<br />PROVIDING AN EFFECTIVE DATE.
<br />WHEREAS, on July 13, 1998, the Paris Economic Development Corporation passed
<br />Resolution No. 98-011, authorizing and approving a loan in the amount of $4,000,000.00
<br />to Paris Packaging, Inc. with a five-year term and a seven percent (7%) interest rate; and,
<br />WHEREAS, on April 16, 2003, the PEDC passed Resolution No. 2003-003
<br />authorizing and approving a Renewal and Extension of the 1998 Promissory 1Vote by
<br />extending the maturity date of the Note from July 15, 2003 to April 15, 2017; and,
<br />WHEREAS, the original $4,000,000 loan from PEDC to Paris Packaging, Inc. was
<br />financed in part through PEDC's issuance of $4,000,000 in Sales Tax Revenue Bonds,
<br />Series 1998; and,
<br />WHEREAS, on March 22, 2010, the PEDC passed a resolution authorizing the
<br />issuance of $2,685,000.00 in Refunding Bonds to refinance the 1998 Series Sales Tax
<br />Revenue Bonds at a Net Interest Cost (NIC) of 3.689%; and,
<br />WHEREAS, on March 22, 2010, the Paris Economic Development Corporation
<br />voted to pass the interest rate savings generated from the 2010 Refunding Bonds to Paris
<br />Packaging, Inc.; and,
<br />WHEREAS, it is now deemed necessary and appropriate to amend the 2003
<br />Renewal and Extension Promissory IVote and the Security Agreement between the PEDC
<br />and Paris Packaging, Inc. to reflect the lower interest rate and revised amortization
<br />schedule.
<br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
<br />PARIS, TEXAS:
<br />Section 1. That the findings set out in the preamble to this resolution are hereby
<br />in all things approved.
<br />Section 2. That the Resolution of the Paris Economic Development Corporation
<br />dated June 24, 2010 which approved and authorized the Chairman of the PEDC to enter
<br />into a First Amended Renewal and Extension Promissory Note with Paris Packaging, Inc.,
<br />as Maker, and payable to the order of Paris Economic Development Corporation, as Payee,
<br />
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