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06/12/2012 MINUTESParis Economic Development Corporation Regular Meeting Minutes June 12, 2012 Board Members Staff Present: Pike Burkhart, Chairman Present: Steve Gilbert, PEDC Rick Poston Bruce Carr Doug Wehrman Ex- Officio Members Guest(s) Present: Jon Landers, Chamber Chairman Present: Pam Anglin, PJC President John Godwin, City Manager Legal Counsel: Kent McIlyar City Council Liaison: None Shannon Barrentine, PEDC Laurie O'Neal, Governor's Office of Economic Development Jeff Parish, eParisTexas.com Charles Richards, eParis Extra Pike Burkhart, Chairman, called the meeting to order at 3:10 p.m. He welcomed those present. Amended Minutes from the April 26, 2012 Called Board meeting were reviewed. Bruce Carr made a motion to approve the Amended Minutes, as submitted; seconded by Doug Wehrman. Motion Carried 4 -0. Minutes from the May 15, 2012 Regular Board meeting were reviewed. Rick Poston made a motion to approve the May 15, 2012 Minutes, as submitted; seconded by Bruce Carr. Motion Carried 4 -0. Financial report for April, 2012 was reviewed. The Financials were approved, as submitted, by a motion from Rick Poston; seconded by Bruce Carr. Motion Carried 4 -0. Steve Gilbert led a discussion about the April through August calendar of events for the Paris EDC Board and Staff. In addition, he announced that the Red River Region Business Incubator (R3bi) was a recipient of a $50,000 Grant from the USDA to establish a revolving loan fund to benefit small business and entrepreneurs. The R3bi Board will oversee the applicants and administer the fund through a newly formed loan committee. Steve also reported that a grant application for $600,000 through the EDA/Public Works to support a kitchen incubator, to assist smaller communities in the region to start a business incubator, assist with technical training, etc. This application will require the joint effort of Paris Jr. College, Lamar County Coalition for Business, Education & Industry along with Texas A &M- Commerce. The full application is available for viewing on the Paris EDC's website by entering "edapw" in the Proposal Box located in the upper right hand corner. Steve had received a telephone call the day before, from an EDA staff person, evaluating the submittal. Bruce Carr wanted to confirm that the grant opportunities are a direct result of our recent visits to Austin and Washington, DC, and based on the just completed business plan, and the work of Richard Seline. Grant awards will increase the ROI of our manufacturing initiative. PEDC Board Meeting Minutes June 12, 2012 Discussion took place on what a grant writer would cost. Steve said he felt Rachel Schory had done an excellent job on the 2 to 3 Grant applications that had been submitted. Grant writers aren't cheap. They can charge up to 10% of the total Grant amount and the Grants that have currently been applied for did not include administration fees. Steve has a trip planned to visit with TMAC /TEEX personnel on their ability to assist with a Manufacturing Jobs Accelerator Grant the last week of June. Discussion and possible action regarding proposed revisions to the current City of Paris' Policy Statement Criteria and Guidelines for Tax Abatement: Kent McIlyar, Legal Counsel, addressed those present. He told them that he had looked at other communities' policies. The Paris City Council wants to . see the process streamlined and less complicated. The City Council deferred action at their last meeting in June. The original policy had charts pertaining to what level an abatement would apply. Most abatements are relative to job creation. Although, Plano, Texas' policy doesn't focus on job creation but the amount of capital investment. Pam Anglin stated that she felt the current policy that was agreed to by all three taxing entities made it simpler to provide a letter to prospective industry stating exactly what abatements would be approved (meeting the designated criteria) rather than have to take each issue before the entities' respective Boards for a decision. More discussion took place. Doug Wehrman made a motion to recommend to the Paris City Council to approve renewal of the existing Tax Abatement Policy between the three local taxing entities (City of Paris, Lamar County and the Paris Junior College) for the short-term, and to activate the "Tax Abatement Committee" (Section 11, (s)) to review any proposed changes, including: a) Simplify and clarify the criteria and policies based on jobs and capital investment; b) Provide an abatement policy for residential properties, including release of City liens for property located inside City limits; and c) Provide a policy for property located outside of the City limits, but within the County and Paris Junior College's jurisdictions and to finalize a revised policy for approval by all governing bodies within 90 days. Motion Carried 4 -0. Discussion and possible action regarding consideration and approval of a Resolution by the Board of Directors of the Paris Economic Development Corporation pledging certain "Pledged Revenues" of the Corporation, including "Gross Sales Tax Revenues ", to the payment of the Corporation's Obligations to the Sulphur River Mobility Authority pursuant to an Interlocal Cooperative Agreement relating to the State Highway 24 Project; Approving the substantially Final Versions of the Two State Infrastructure Bank Loan Agreements between the Authority and the Texas Department of Transportation and the Interlocal Cooperative Agreement between the Authority and the Participants; and other matters relating thereto: Steve informed the Board that the State Infrastructure Bank (SIB) Loan documents had changed drastically. That due to Paris EDC's current outstanding Bonds for Paris Packaging that TxDOT wanted parity obligation on future sales tax revenues to debt. There was a SuRRMA Board meeting the week prior and Delbert Horton, Chairman, was negotiating between SuRRMA and TxDOT attorneys. Steve would be meeting with Paris EDC's attorney on the matter, June 13`h in San Marcos. Not ready to take action on this item at this time. Discussion and possible action regarding Revenue Bond Payments pertaining to the Paris Packaging Bonds and the timeline and costs affiliated with the defeasance process for payment, to term, of same. Steve asked them to view the document provided by Southwest Securities. For Paris EDC to create a defeasance on the existing Bond debt a third party (escrow) account would need to be established in the amount of $2,370,940.15. The defeasance process takes about 90 days. The Board asked if that amount included all processing fees associated with the process. Steve said he would check into it. No action was taken on this item. PEDC Board Meeting Minutes June 12, 2012 Discussion and possible action of the revised Policy & Procedure Manuel for the Paris EDC. The Board reviewed the Draft of the Policy & Procedure Manual. It was asked that the evaluation forms for all positions, disciplinary action form and travel allowance language be amended. Not action was taken on this item. The Board convened into executive session at 4:36 p.m. pursuant to Section 551.072, and Section 551.087 of the Texas Government Code to discuss and deliberate on the following: A. Section 551.072 - Real Property B. Section 551.087 — Economic Development Negotiations Executive session ended at 5:50 p.m. The Board reconvened into open session. The following action was taken as a result of executive session discussion: Rick Poston made a motion for the Executive Director to explore contract options for Special Counsel with Fulbright & Jaworski and to further negotiations on Projects: Tiger Tale and White Space; seconded by Bruce Carr. Motion Carried 4 -0. Doug Wehrman made a motion to adjourn at 5:51 p.m.; seconded by Rick Poston. Motion Carried 4 -0. Respectfully submitted, Shannon Barrentine Asst. Executive Director Paris EDC