06/08/2010 MINUTES - Laserfiche WebLink

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PEDC Board Meeting Minutes June 8, 2010 Diversity Compact — Steve had invited Rev. James Price to attend the meeting today, but he had a conflict and couldn't make it. The Compact will be pro- active /pro- business conunitment to diversity — no written document yet. This effort will tie back to the Turner Retention Strategy resulting in a clear statement as a community regarding diversity. Fred Green, Director of the Red River Region Business Incubator, reported that his Community Awareness Program had been in full force by speaking to both Rotary clubs, Kiwanis, Lions club and Industrial Managers. He is also beginning a "Logo -You Go" contest to get ideas submitted for an incubator logo. The winner will get two tickets to the Texas vs. Oklahoma game in October sponsored by Liberty National Bank -Carl Cecil. June 29th will be a Social Networking Conference sponsored by the Small Business Development Center. He has visited with all nine lending institutions (stakeholders) in Lamar County. He will conduct a training of current Small Business Administration (SBA) Loan procedures with these stakeholders in the near future. He plans to complete the Incubator Business Plan in the following week. He also needs an Incubator Advisory Board comprised of Attorney(s), Certified Public Accountant(s) and various others to participate and give advice to the clients. He plans to tour the incubators in Tyler and Temple to ask questions and get ideas. He plans to submit a press release once a month with updates to keep the community and future clients informed. Discussion and possible action authorizing amendment to existing agreement and passing the interest savings to Paris Packaging from the issuance and sale of Paris Economic Development Corporation Sales Tax Revenue Refunding Bonds, Taxable Series 2010. Steve stated that the intention of refinancing the bonds was to be able to pass on the annual savings to Paris Packaging. Unfortunately, the Board has never taken official action on this item and that is needed in order to complete the process along with an amended agreement reflecting the reduction in interest from 7% to 3.75% and an amortization schedule for the City of Paris Finance Department. Ken McIlyar is working on the amended agreement and plans to have it for review and approval by the next Board meeting. Steve stated that himself and Rachel Schory had performed a Business Retention and Expansion (BRE) visit with Paris Packaging in the past week and they currently employ 170 employees. The Paris facility was built in 1972 and the company recently acquired their 4th plant branded Paris Packaging located in Houston. They toured the facility and the company is moving forward with equipment upgrades and is very positive. Discuss budget highlights and take action on setting date and time for a called PEDC Board meeting to discuss FY 2010 -11 Budget. Steve told the members present that currently the cash position for the PEDC is $1.734 million with operating costs around $400 - $450,000 a year. The Revenue carry over fund balance is $1 million. He will provide a clear budget "picture" of where PEDC is currently and where PEDC wants to go in the future. The proposed revenue figure from the City of Paris is $1,106,890 but Steve stated he wasn't comfortable with using that figure. He would rather use a more conservative figure of $1 million for sales tax revenue with all actual revenues over the estimated amount rolling forward to improve the PEDC's annual cash position. Steve believes in an "open book" policy regarding budgets. His proposed budget will be tying together figures from the actual audit of FY 2009 -10, Chamber expenses, along with reports from the City of Paris producing a very conservative budget. Steve would like to present the approved PEDC budget to the city council on June 28th, since it is actually due to them by July 1St. Dan Smith made a motion to have a called PEDC Board meeting to discuss the proposed PEDC Budget for FY 2010 -11 on Thursday, June 24th at 11:00 a.m.; seconded by Chad Brown. Motion carried. 2