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PEDC Board Meeting Minutes <br />May 15, 2012 <br />Bonds were renegotiated for a lower interest rate in 2008. The Paris EDC Chairman, Dan Smith, verbally <br />committed that all the savings on the renegotiated Bonds were be passed on to Paris Packaging who has <br />recently been acquired by Huhtamaki. The Principal amount owed is around $2.2 million. The amount <br />received from Huhtamaki was $1.7 million. There is a process called Defeasance of Bonds where a third <br />party controls the annual payments through an escrow account at which point the Paris EDC commits the <br />funds and the debt is removed from the balance sheet. This process doesn't affect the current bond rating <br />but does have costs related to legal and financial advisor fees, etc. Takes about 60 to 90 days to process. <br />The Board asked that Gene and Steve Gilbert get information on the defeasance process by contacting Dan <br />Almon, S W Securities and Dan Culver, attorney to produce a timeline and costs related to the process and <br />bring back to the Board in the near future. No action was taken on the item. <br />Director's Renort. Steve Gilbert updated the Board as to the status of the EDA/USDA Grant submittal. <br />Due to the fact that the Paris EDC had not used/activated a certain module with the Grants.gov site, within <br />the last year, the application was rejected. But, he was encouraged to deliver unsolicited grant proposals to <br />various agencies that he had made contacts with through the Austin Trip and the recent Washington, DC <br />trip. We expect an upcoming Manufacturing Jobs Accelerator Grant opportunity in the next few weeks. <br />Kenny Dority left the meeting at 3:49 p.m. <br />The Board convened into executive session at 4:09 p.m. pursuant to Section 551.072, and Section <br />551.087 of the Texas Government Code to discuss and deliberate on the following: <br />A. Section 551.072 - Real Property <br />B. Section 551.087 - Economic Development Negotiations <br />Executive session ended at 5:50 p.m. The Board reconvened into open session. There was no action as a <br />result of executive session discussion. <br />Bruce Carr made a motion to adjourn at 5:51 pm.; seconded by Rick Poston. Motion Carried <br />3-0. <br />Respectfully submitted, <br />Shannon Barrentine <br />Asst. Executive Director <br />Paris EDC <br />23 <br />