C.A.F.R., FY 2011-12 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements September 30, 2012 V. Other Information (Continued) F. Contingent Liabilities, Commitments and Subsequent Events (Continued) PEDC has extended several incentive agreements to various companies: (1) Warehouse company - Company is to create 35 new jobs providing an incentive amount of $105,000. (2) Commercial dairy - The incentive is to provide cash payments far creating 150 new jobs in Paris and Lamar County for five years. This amount is estimated to be $664,300 and expected to begin in 2017. (3) Soup manufacturer - The incentive is to participate in the cost of a solar storage structure to the extent of $100,000. (4) Truck accessories - Company is to open a manufacturing facility in Paris, Texas, and create 15 new jobs. The incentive is for $324,250 for new jobs, training, and infrastructure. At September 30, 2012, $226,118 of the incentive remains to be satisfied. PEDC has also executed a guaranty in connection with a$100,000 note to a bank. (5) Retail and office structure — The incentive is to participate in reimbursement of sewer line construction to the extent of $250,000. (6) Therapeutic proteins manufacturer and distributor — Facilities to be located at Paris Industrial Park to create new jobs. PEDC has committed $219,760 to complete a market analysis, a site and facilities plan, and a bridge loan. Additional incentives may be extended in the future. In connection with a first lien loan by a bank to a commercial operation in the amount of $5,800,000, PEDC has entered into a Guaranty of Collection agreement. The loan payment is guaranteed by an individual (and a related company), and in addition, PEDC has guaranteed the full and prompt collection of the principal and interest due under the note together with limited cost of collection. If the lender makes demand under the Guaranty of Collection agreement, the lender will allow PEDC to satisfy its liability in monthly installments as specified in the original note. The agreement is dated September 23, 2010, and will terminate when the note is paid or the expiration of ten years. In August 2012, the Board of Directors approved the renewal of a$2,000,000 revolving line of credit with a bank for future economic development projects. The note is dated September 18, 2012, and bears interest at the initial rate of 1.29% which is due monthly. The principal is due in one payment on September 18, 2014, and is secured by sales tax revenues and other income received by PEDC except that portion of income currently obligated or subsequent bond issued as contemplated by the Series 2010 bonds. The interest rate is subject to change based on changes in an independent index and the rate charged is to be 1.96% under the index which at September 12, 2012, was 3.25%. The note documents also provide for right of setoff by the lender in all accounts the lender holds and other restrictions pertaining to issuance of additional debt, maintenance of 47