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Regular Council Meeting <br />September 9, 2013 <br />Page 4 <br />William Strathern said he filed a public information request with the City of Paris, after <br />reading a Dallas newspaper article casting doubt on Economic Development Corporations and <br />their monitoring of company compliance agreements. He said that Mr. Gilbert claimed that <br />1,750 jobs were saved and 600 new jobs were created, which was a gross exaggeration. Mr. <br />Strathern further said the US Census showed no growth from 1990 thru 2000 and 2010. In <br />addition, Mr. Strathern said in 2010 the total number of industrial jobs was 2,816 and in 2013 <br />that number was 2,944, citing his personal investigation and the PEDC web -site. <br />Mr. Strathern explained that PEDC was established by a vote of the citizens on May 1, <br />1993 when the following proposition was approved, "The adoption of an additional Sales and <br />Use Tax within the City of Paris, Texas, at a rate of one -fourth of one percent to be used for the <br />benefit of a corporation to carry out industrial development programs consistent with the <br />purposes and duties set out in the Development Corporation Act of 1979." <br />Mr. Strathern said vendor invoices combined with credit card expenses reflected <br />uncontrolled and unexplained expenditures. He also said after reviewing the data, he had more <br />questions which led to a second public information request. Mr. Strathern questioned the <br />expenses for Lamar County Days. He also said he found expenses that were paid for by credit <br />card did not generate an expense form, so there was no explanation for the money spent. He also <br />questioned if compliance progress was adequate. Mr. Strathern said his preliminary findings <br />were that the voters' wishes had been ignored, there was a pattern of misinformation, a pattern of <br />waste, a pattern of abuse and there was no oversight by PEDC Board of Directors. In closing, <br />Mr. Strathern recommended that the data be validated, that PEDC focus on primary jobs, that the <br />PEDC Board be required to stop all unnecessary expenditures for 90 days or until the Charter <br />was reviewed and necessary changes were made; and that the PEDC Board update policies and <br />procedures to provide oversight that would force adherence to sound business practices. <br />Council Member Frierson stated that the Sara Lee facility closed and the PEDC was <br />instrumental in bringing the plant back to life. He also said that Mr. Gilbert had accomplished <br />some positive things for Paris. Council Member Grossnickle said there had been personal <br />attacks against Mr. Gilbert, which may not have been warranted and that he thought Mr. Gilbert <br />was trying to do the best he could to keep the current companies in Paris. Council Member <br />Drake said they could not change the past, but needed to move forward with the PEDC Board's <br />recommendations. She also said the taxpayers' money should be spent wisely and in the manner <br />which it was intended. Council Member Drake said they needed to make Paris a place where <br />businesses wanted to locate and a place where they wanted to bring their families. She said they <br />needed to learn from their past and let the current Board set up new policies to insure this doesn't <br />happen again. Council Member Lancaster said there had been some things that they probably <br />did not want to hear, but needed to hear. Council Member Drake said it was a good time to get <br />PEDC back on track, focus on getting jobs into the community, and presenting a clear, honest <br />picture for the citizens. Council Member Jenkins expressed appreciation to Mrs. Clifford, Mr. <br />Strathem, the PEDC and City Council. He said everyone must make sure they do their jobs and <br />do the best for Paris. Council Member Wright said the discussions and presentations had been <br />helpful in solving the problems and that he had the utmost faith in the Board. He also said if <br />