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1995-07-12-Minutes MINUTES OF THE PTLRIS ECONOMIC DEVELOPMENT CORPORATION ;%NNTJ/kLMEETING July 12, 1995 The Paris Economic Development Corporation met in a regular meeting on Wednesday, July 12, 1995, at 4:00 P.M., in the City Hall North Annex, Fire Training Room, Paris, Texas. President -- Philip Cecil called the meeting to order with the following boardmendoers present: Dick 7tmis, Curtis Fendley, Leon Williams, and Barney Bray. Also present were ex-officio board members, Bill Vaughan, Gary Vest, Economic Development Director, Eric Clifford, Mayor, Michael E. Malone, City Manager and T. K. Haynes, City Attorney as Counselor. President Cecil asked City Attorney T. K. Ha3nes to administer the oaths of office to Curtis Fendley and Leon Williams reappointed directors of the Corporation. President Cecil stated that the next item on the agenda was approval of the minutes from the previous meeting of the Paris Economic Development Corporation. He asked if there were any corrections or additions to the minutes of the previous meeting, and there being none the minutes stood approved as presented. President Cecil asked Gene ~derson to give the financial report. Mr. Anderson gave the report. President Cecil called for questions and there being none, Boardmember Fendley made a motion which was seconded by Boardmember Barney Bray, to approve the financial report as presented which carried unanimously. President Cecil stated that he'did not have a report to give at this time. President Cecil asked Mr. Vest to make his report. Mr. Vest said that due to advertising they had received several inquiries since the last meeting. He said he had given a Quarterly Report to the City Council in order to update them on the Board's activities Mr. Vest passed around copies of the revisions to the Plan of Work and Budget figures provided at the last meeting. President Cecil asked for questions and there were none. President Cecil asked the City Engineer to give the projects report and was advised that he was absent due a death in his family. President Cecil asked Mr. Amis to give his report regarding the purchase from the Paris Industrial Foundation. Mr. Amis said that since the last meeting the group had met at the site and asked the City Engineer to check the engineering. The engineer's report indicated that this particular tract would require more infrastructure work than envisioned. He said they were either going to have to pick a different site, or decide to do the infrastructure work and that the committee has not met on that issue at this time. City Manager Malone advised he did not think that the City Engineer had made a firm estimate of cost to go down the creek and connect to the lift station. Mr. Amis said the committee would develop additional information with the City Engineer relating to the cost of the sewer, etc., and decide feasibility and report back to the Board. President Cecil asked City Manager Malone to discuss the request of the City of Paris for matching funds necessary for the Texas Department of Transportation airport improvement projects at Cox Field Airport. Mr. Malone advised there was an Airport Master Plan for Cox Field by Bucher, Willis & Ratliff completed July, 1991, which covered the years of 1990 thru 2010. He said this plan was initiated and adopted by the City to determine the existing and future role of the airport and to provide information and direction in the future planning and continued development of the facility. This Master Plan was developed with input from local officials, aviation users, representatives of local business and industry, and the general public. The airport serves primarily the Lamar County area as a transport facility and is recognized as a "business service" airport by the Texas Department of Transportation. He stated that of the two projects being considered at this time totalling $630,000.00, the construction of a new terminal facility is expected to cost $400,000.00, with the cost to be shared 50/50 between the State of Texas, through the Texas Department of Transportation, and the City of Paris. The present terminal building was constructed in 1957. According to the Airport Master Plan, the terminal "lacks adequate space for many pilot and general aviation passenger functions, and the building is in only fair condition and remodeling/expansion of the building would be required, at a minimum". The Manager stated that an important part of the Cox Field Airport activity is the corporate and industrial user. Mr. Malone said executives of the industries in Paris that utilize the airport support the development of the airport and utilize it a great deal in their businesses. The Manager stated that the Aviation Facilities Development Financial Assistance Program provides assistance through loans or grants to public entities for the purpose of establishing, constructing, reconstructing or repairing airports, airstrips and aviational facilities. A number of priorities were used in developing these projects and the chief of them was safety preservation. He said that the plan that's adopted is a tentative program where they identify projects in a five year plan. Mr. Malone said this particular matter has two different projects combined in one presentation. One project is the construction of a new terminal building to replace the existing terminal building as noted in the Master Plan which was one of the options to be considered. The present terminal does not meet A.D.A. requirements. Mr. Malone stated that the state officials in charge of these programs believe that the best plan is construction of a new terminal facility. Boarctmember Bray asked if they had a report as to the development of the criteria that the terminal needed to be replaced and not repaired. City Manager Malone said he understood that the gentleman in charge of the program had been in Tennessee and his goal in Tennessee was to have a new terminal in every county of the state. The state spends a great deal of money through their Department of Commerce and to promote the idea of bringing in industry fro~ other states and desires a nice terminal facility that represents a good "front door" to a community. Mr. Malone said we know that the only reason that we have Cox Field Airport is for business and industrial purposes, and that all other purposes and activities are secondary. 159 Boardmember Bray questioned the number of times several of the local industries flew into the airport. City Manager Malone stated he felt the majority of the usage of the airport was business and industry. Mr. Malone said that the City of Paris cannot afford to take that amount of money out of the General Fund and apply it to the building, and we cannot afford to be -- sued because someone's unhappy that they do not have access to the airport building under A.D.A. Mr. Malone said that we have an airport that is an integral part of an industrial park, and we are looking to the future. He said we have zoning and industrial areas outlined in the Master Plan and everyone is interested in trying to attract aviation related industries and make use of this asset. Mr. Malone stated "the airport is worth more than twenty million dollars, and as long as we have the airport we are going to have to maintain it". The City Manager stated that we cannot afford to maintain an airport out of the General Fund and the property taxes. It is being used for industry and business, otherwise we would not fund it. He said the airport is less than a half percent of the total budget of the City of Paris. People that live in Paris and own property and pay taxes have provided the bulk of the support for economic development in this county. He said his recommendation is that this particular project is a bona fide industrial development infrastructure type project that serves business and industry, and that the law specifically addresses an airport which has been designated, contemplated and planned as an integral part of an industrial park in the Master Plan. Rather than put pressure on the general fund and raise taxes to pay for any __ improvement at the airport which would not be supported by people who are not business people, he would reco~unend utilizing money that's being paid by people living in the county as well as the citizens of Paris and southeast Oklahoma.. Mr. Malone said essentiallv this is a State project and all they are asking fr~m us is matching money and local input. President Cecil stated that he understood where Boardmember Bray was coming from, but felt it was very important for the industrial development in this area to have a top flight airport, and he agreed with Boardmember Amis. After discussion President Cecil called for a motion to move Item 12-B forward at this time. Boardmember Fendley made a motion to move Item 12-B forward to Item 9-A at this time, which was seconded by Boardmember Amis. The motion carried unanimously. Res.95-009, committing funds in the amount of $223,000.00 to the City of Paris for matching funds necessary fo secure financial assistance for airport improvement projects at Cox Field Airport, Paris, Texas, for taxiway improvements, drainage improvements, navigational aids and terminal reconstruction in the event that the City of Paris' request to the State of Texas for financial assistance be approved was presented. -- RESOLUTION NO. 95-009 WHEREAS, the Texas Department of Transportation provides funding ~r ai~ort improvement grants, and the City of Paris is desirous of requesting financial assistance ~r ~ort improvement pr~ects at Cox Field Ai~on, Paris, Texas, ~r taxiway improvements, drainage improvements, navigational aids and terminal reconstruction, at a total cost of $630,000.00, with $407,000.00 to be provided by the State of Texas and $223,000.00 to be provid~ in the ~rm of local contribution funds and in-~nd services, as authorized; and, WHEREAS, the Paris Economic Development Co~oration has received a request from the City of Paris to furnish such matching funds in the amount of $223,000.00; and WHEREAS, the economic development of Paris is dependent upon Cox Field Airport being capable of meeting the needs of both industries currently located in Paris and industries considering establishing a location in Paris; NOW, THEREFORE, BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that the matching funds necessary to secure financial assistance for airport improvement projects at Cox Field Airport, Paris, Texas, for taxiway improvements, drainage improvements, navigational aids and terminal reconstruction in the amount of $223,000.00 be, and the same are hereby, committed to be provided to the City of Paris in the event that its request to the State of Texas for financial assistance be approved; and, BE IT FURTHER RESOLVED, that the Director of Finance, Gene Anderson, be, and he is hereby, authorized and directed to transfer funds in the amount of $223,000.00 to the City of Pads upon receipt of evidence that stich financial assistance has been approved by the State of Texas. PASSED AND ADOPTED this 12th day of July, 1995. P~ip R. President Cecil, ATTEST: ~6h~rd M. Amis, Secretary-Treasurer "'-"~T. 'K.~ Haynes, Efty Attorney Boardmember Amis made a motion, seconded by Boardmember Fendley to adopt the resolution. The motion carried unanimously. President Cecil asked the Board to move into executive session and he excused everyone else, other than ex-officio .member Mayor Eric Clifford, City officials and Mr. Vest. The Board reconvened from executive session. President Cecil stated that the next item was consideration of and action on employment of personnel. Boardmeraber g~is made a motion that the position of Assistant Director as outlined by Mr. Vest be created and that the line item.on the budget be $35,000.00 to include salary, benefits, and expenses, which was seconded by Boardur~ember Bray and carried unanimously. President Cecil called for consideration of establishing a regular monthly meeting date and time. After discussion, it was the consensus of the board that the Wednesday following the second Monday of the month would be the regular monthly meeting date. Resolutio]~ No. 95-010, setting the monthly meetings of the Paris Economic Development Corporation for 4:00 o'clock p.m., on the following dates, August 16, 1995, September 13, 1995, October 11, 1995, November 15, 1995, December 13, 1995, January 10, 1996, February 14, 1996, March 13, 1996, April 10, 1996, May 15, 1996, June 12, 1996, and July 10, 1996, was presented. 161 RESOLUTION NO. 95-010 WHEREAS, in keeping with Section 5.02 of the Bylaws of the Paris Economic Development Corporation, the President is obligated to, at the beginning of his term, set the regular meeting dates and times for the upcoming year; NOW, THEREFORE, -- BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that the monthly meetings of the Paris Economic Development Corporation be, and they are hereby, set for 4:00 o'clock p.m. on the following dates: August 16, 1995, September 13, 1995, October 11, 1995, November 15, 1995, December 13, 1995, January 10, 1996, February 14, 1996, March 13, 1996, April 10, 1996, May 15, 1996, June 12, 1996, and July 10, 1996. PASSED AND ADOPTED this 12th day of July, 1995. R. Cecil, President ATTEST: R46hard 1{4. Amis, Secretary-Treasurer A,','ROVE /gS yO FO .. T. K. HayneS, CiI,~ttorney Boardmember Amis made a motion, seconded by Boardmember Bray to adopt the resolution. The motion carried unanimously. President Cecil stated that the next item on the agenda was approving the amended Amnual Plan of Work outlining the activities, tasks, projects and programs to be undertaken by the Board during the fiscal year 1995/1996. Resolution No. 95-011, amending the previously approved annual plan of work outlining the activities, tasks, projects and programs to be undertaken by the Board during the upcoming fiscal year and directing the Director of Economic Development to deliver the same to the City Manager of the City of Paris was presented. RESOLUTION NO. 95-011 WHEREAS, the Paris Economic Development Corporation, in keeping with Section 4.03 (4) of its Bylaws, did, on the 14th day of June, 1995, in Resolution No. 95-007, approve an annual plan of work outlining the activities, tasks, projects and programs to be undertaken by the Board during the upcoming fiscal year; and, WHEREAS, it is necessary that such annual plan of work be amended; and, WHEREAS, the amended annual plan of work, attached hereto as Exhibit A, is hereby presented by the Director of Economic Development, and it is appropi'iate that such amended plan be approved; NOW THEREFORE; 162 BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that the amended annual plan of work, attached hereto as Exhibit A, be, and the same is hereby, approved; and, BE IT FURTHER RESOLVED, that the Director of Economic Development be, and he is hereby, directed to deliver the amended annual plan of work to the City Manager of the City of Paris. PASSED AND ADOPTED this 12th day of July, 1995. /~ilip R. Cecil, President ATTEST: q~ichard M. Amis, Secretary-Treasurer 163 .. Development Corpor~tibn PROGRAM OF WORK 1995-1996 TABLE OF CONTENTS Mission Statement Charge of Paris City Council PEDC Overall Economic Development Program 1995-1996.Program of Work: Goals, Objectives, andActions Goal I - Public Relations Goal II - Recruitment/Marketing Materials Goal III - Recruitment/Retention aztd Expansion Goal IV - Community Development Flexible Incentive Plan Goals Activities Permitted Recommended Guidelines Participation Cost Benefits Evaluation Factors Evaluation - Evaluation Teams Evaluation Process Closing/Monitoring Budget for 1995-1996 MISSION STATEMENT -- PARIS ECONOMIC DEVELOPMENT CORPORATION TO PLAN, PROMOTE, FINANCE, AND CONSTRUCT OPPORTUNITIES FOR TILE. RETENTION, GROWTH, AND ATTRACTION OF BUSINESSES THAT ENHANCE THE LEVEL OF EMPLO~NT, THE ECONOMIC BASE AND QUALITY OF LIFE IN PARIS AND LAMAR COUNTY, TEXAS. Goal I.Public Rehlions: Develop a public rehtfons progr,nm to solidt local support of projects and programs of : PEDC. Goal IL Recruitment/Marketing Materials: Develop a m~rketing campaign that specifically addresses the locational advantages and posk~ve aspects of Paris as a site for manufacturh~g, distribution, and service type facili ties. Goal III. Recruitment/Retention and Expansion: Establish a comprehensive industrial recruitment program induding retention and expansion of existing industrial sector jobs. Goal IV. Community Development Support community development by enl~ancing the local infrastructure to support industry, and providh~g educaffonal · opporttmities and trahzing to enhance the local workforce. COUNCIL CHARGE ~ PARIS ECONOMIC DEVELOPMENT CORPORATION Definition: To entrust or burden with; to command, instruct, or exhort with right or authority;, to impose a task or responsibilities on. The Paris City Council charges the directors of the Paris Economic Development Corporation (PEDC) with the followh~g respmrsibilities mid actiolrs: * To focus all Corporate endeavors on i. mplementation of the Mission Statement for the PEDC. * To operate only in a mariner consistent with all federal, state, and local laws. * To follow and implement the "501 (c) (3) Operational GuidelLnes" with the advice and counsel of the City Attorney of the City of Paris.@ * To follow the Council"Pollcy Directives" for the PEDC in carrying out the Council Charge.@ * To take al/actions identi/ied in the "Critical Dath of Start-up".@ * To complete a "Strategic Plan" following the guidelines of the "Strategic Plan Process" by May 31, 1994.@ * To clearly delineate in writing the roles of other community organizations in assisting the PEDC in carrying out the Council Charge. * To the very best of the Board's ability, make decisions that are in the best legal ethical and long-turin economic interests of the overall community of Paris. * To encourage employment growth in all segments of the Paris citizenry without regard to race, creed, sex, or age. * To develop a compreheusive business h~centive package and project approval criteria for adoption of the Paris City Council. * To follow the guidelines set out in the incentive package and project approval criteria. @ Resource Manual Prepared by Day and Associates for the PEDC. PARIS ECONOMIC DEVELOPMENT CORPORATION _ OVERALL ECONOMIC DEVELOPMENT PROGRAM Pursuant to the voters of Paris desires expressed in the May, 1993, election, the Paris City Council created the Paris Economic Development Corporation (PEDC). The clmrge of the Paris City Council was simple in statement: To develop a comprehensive business incentive package with approval criteria that would encoku'age employment growth, focusing all endeavors on the implementation of the Mission Statement. However, an overall economic development program is anything but simple. Economic development, in the fullest sense, is a mix of economic -- activities that have the primary purpose of bringing money (new dollars) and investment into the City. The PEDC Program of Work develops specific actions and programs that take advantage of Paris' strengths and mitigate weaknesses in order to accomplish the Council's charge. It focuses the activities of the PEDC by concen- trating on those programs that have the best chance of succeeding. The Program of Work involves the process of: * Establishing goals and objectives; * Concentrating on limited issues; * Developing general pohcy recommendations; and * Implementing specific actions. 168 OVERALL ECONOMIC DEVELOPMENT FROGRAM PAGE 2 Integral to the process of selecting goals and objectives is the acknowledgement that there are restraints on the program and activities selected for inclusion. Besides the legal restrictions that dictate how the sales tax revenues can be spent, there is the reality that to be successful the efforts of the Corporation must be targeted. This program is fotmded on the retention, expansion, and attraction of industrial/manufacturing activity because that economic sector offers Paris the best potential to expand and diverisfy its economic base - thereby creating and upgrading job opportunities and the Paris quality of life. The long term commitment to economic development should be focused in the following areas: * The retention and expansion of existing industry. * The marketing of Paris to recruit new industry. * The development of the community's infrastructure to support industry. * The development of public sentiment and support for the projects of the PEDC. 169 GOAL I: Public Relations Develop a public relations program to solicit local support of projects and programs of the PEDC. OBJECTIVE To educate and inform the Paris general public as to the need and benefit of PEDC projects and programs. ACTIONS Positive interaction with all local media through explanation of actions by Board Members, availability for interviews, serve as guest columnist for newspaper. Conduct and support community wide visioning. Utilize outside consultant groups if necessary. . Coordinate with the Public Affairs Committee of the Chamber of Commerce. Utilize local labor organizations for communications. Direct communications with local minority leadership and special interest groups. 170 GOAL I: Public Relations (continued) OBJECTIVE Present a unified and focused effort of the community for economic growth. ACTIONS Presentation to local and area civic clubs and organizations. Interact with other area economic development agendes and groups. Encourage individual salesmanship through local Parisian entrepreneurs and existing businesses. 171 GOAL II. Recruitment/Marketing Materials Develop a marketing campaign that specifically addresses the locational advantages and positive aspects of Paris as a site for manufacturing, distribution, and service type facilities. OBJECTIVE Gain regional, state, and national recognition of the positive aspects of doing business in .Paris. ACTIONS _ Coordinate with the Chamber of Commerce Marketing Committee to publish brochures that promote Paris. Develop advertising materials to be used in magazines, newspapers, billboards, and direct mail. Participate in promotional activities such as those supported by the Texas Marketing Team. Participate in the Texas International Reception. Participate in the Texas Industrial Development Council. Participate in the North East Texas Economic Developers Roundtable. _ Participate in the American Economic Development Council. 172 GOAL II: Recruitment/Marketing Materials (continued) ACTIONS Work in close cooperation with industrial allies, such as TU Electric, Lone Star Gas, Railroads, and the Texas Department of Commerce. Develop an industrial allies appreciation day. Establish relationship with state and national legislature to influence decisions that affect economic development and enhance the local and state business climate. Have Paris recognized as a Lone Star City. Participate in select target market Trade Shows. 173 GOAL III: Recruitment/Retention and Expansion Establish a comprehensive industrial recruitment program including retention and expansion of existing industrial sector jobs. OBIECTIVE Attraction of new industrial jobs while retaining and expanding the currently existing industrial base. ACTIONS Contact prospective industries for facility locations in Paris. -- Develop target industry groups. Acquire necessary directories for prospecting activities. Develop a library of statistical and demographic information on Paris and its trade area. Participate with the Chamber of Commerce Industrial Managers Group. Recognize local industries for expansion, growth, and outstanding contribution to the Paris economy. Initiate a program of personal visitation by PEDC to local industries. Solicit Parisians to make personal calls on corporate headquarters of -- existing industry and prospective industry. 174 GOAL III: Recruitment/Retention and Expansion (continued) ACTIONS Work with the Chamber of Commerce to publish and distribute a directory of Paris and Lamar County manufacturers. Utilize survey of existing industry to devdop prospect list. Leverage PEDC to finance industrial projects. Explore all development options that could affect the Paris economy such as tourism attraction projects, retail and wholesale development. Expand staff to effectively carry out all economic development functions of the PEDC 175 GOAL IV: COMMUNITY DEVELOPMENT Support community development by enthancing the local infrastructure -- to support industry, and providing educational, opportunities and training to enhance the local workforce. OBJECTIVE ' Provide necessary support systems to entice industry and provide a trained and ready workforce. ACTIONS Support the improvement of transportation access into Paris, ground and air. Develop industrial sites for prospective industry cleared, identified, __ with development plans. Carry out construction of a modal building to attract prospective industry. Coordinate industry training needs with local school district and Paris Junior College. Promote the Smart Jobs Program to Paris and Lamar County industries. Promote the Paris Enterprise Zone as a locational incentive. Utilize the tax abatement incentive program as defined by the City of Paris. Promote the "Freeport Exemption" of taxes on goods in transit as a locational incentive. 176 Paris Economic Development Corporation FLEXIBLE INCENTIVE PLAN PARIS, TEXAS MAY 12, 1994 1651 Clarksville Street * Paris, Texas 75460 (903) 784-2501 * 1-800-PARIS, TX * Fax: (903)784-2503 177 GOALS: The Paris Economic Development Corporation will.consider participation in projects which will: * create new jobs * retain existing jobs * attract new business * encourage new business formation 178 ACTIVITIES SPECIFICALLY PERMITTED UNDER TEXAS LAW (Section 4a Cities): * Acquistion of land, buildings, and equipment; * Paying principal ,and interest on debt; * Improving airports that are an integral part of an industrial park; * Making improvements to support waterborne commerce; or * Leasing, selling by installment payments, making secured or unsecured loans, or issuing bonds, providing temporary or . permanent financing or refinancing (including refunding of outstanding obligations) for projects of the development corporation. PROJECTS SPECIFICALLY ALLOWED INCLUDE: * New or existing land, buildings, equipment, facilties and improvements required or suitable for the promotion or development and expansion of manufacturing facilities; * Transportation and other public services such as sewer and water to industrial sites and faclities; * Distribution centers; * Small warehouse facilities capable of serving as decentralized storage and distribution centers; and * Facilities which are related to the foregoing. 179 RECOMMENDED GUIDELINES: The Paris Economic Development Corporation wants to encourage the _ development of vigourous, competitive businesses and to maximize the impact of the funds generated by the economic development sales tax. Therefore, the PEDC wig make its investment derisions in accordance with the following principles: a) Businesses must demonstrate financial health and the ability to remain financially sound. b) Funds committed by the Paris Economic Development Corporation should be used to enhance or leverage commitments from private sector lenders and/or other public sector programs including: * enterprise zone * SBA 7(a) loan guarantees * SBA 504 fixed asset loan -- * Texas Capital Ftmd * Texas Leverage Fund * Texas Smart Jobs Fund * Exporters Loan Guarantee Program * Ark-Tex Regional Development Company Revolving Loan Fund * Economic Development Administration and other new state and federal programs. c) Techniques which provide substantial support to businesses in the job creation process and at the same time preserve capital for future use with other businesses will be used whenever possible. Such teclmiques could include loans rather than grants, loan guarantees, interest rate write-downs, subsidized rent during a start-up or relocation time frame, leveraging bank loans by taking a subordinated position, etc. -- d) The project must be located within Lamar County. 180 PARTICIPATION: The Paris Economic Development Corporation will determine on a case by case basis the best way to encourage job creation by new or existing industry. The PEDC may participate in any of the following ways: * direct loans, including subordinated to bank debt * loan guarantees * extension of utilities to an industrial site/site development * interest rate write-downs * rent subsidies * land or building purchase/lease (could include remodeling) * build/lease-back * job training * loans with forgiveness based on job creation * reimbursement of relocation expenses * issuance of bonds or participation in the Texas Leverage Fund The Laws governing the economic devdopment sales tax are subject to change. The Paris Economic Development Corporation should rely on legal counsel in each and every case to make sure that commitments are within the parameters of the law. 181 COST BENEFIT EVALUATION FACTORS: The Paris Economic Development Corporation will evaluate potential -- projects based on cost/benefit analysis taking into consideration the following criteria: a) Commitment of company funds: The Company must make a cash commitment to the project. A company commitment in the range of 15-30% is preferred; 20% can be used as a general guideline; the specific contribution will be negotiated on a case by case basis.. b) Leverage of other funds: The ratio of all other funds to the funds committed by the Paris Economic Development Corporation shall not be less than 1:1. "Other funds" may include company equity, private debt, and state or federal grants or loans. C) Dollars per job: A flexible approach is recommended in this case, depending on the extent of a company's economic impact. The general guideline which will be used is. I job per $10,000 in loam funds and I job per $2,000 in grant funds. For companies Which are adding to the property tax base, provide higher wages, have substantial related economic benefits (i.e. purchasing of locally grown agricultural products, extensive use of local machine shops, etc.), and make a long term commitment to the community (i.e. purchase vs. lease), tile PEDC may elect to increase the financial commitment per job on an individual case by case basis. 182 EVALUATION EVALUATION TEAM: A project review committee should should be established. Members of this committee should have the capability to evaluate the business plan and financial information provided by the company. The committee may include some or all of the members of the Paris Economic Development Corporation and other appointees in a decision making or advisory capacity. Characteristics and skills which are important to the project review team are as follows: * understanding of the community, its economy and goals * unquestioned integrity * ethical, can be trusted with confidential business information * able to balance caution, creativity, and risk-taking * good communicator, fosters enlightened debate while maintaining a positive team spirit * significant business experience * understanding of finance and ability/willingness to combine various economic development tools into a financing package * ability to recognize positive attributes of various proposals as well as the ability to identify projects most likely to fail * ability to identify and to manage risk * legal, accounting, construction/engineering, lending, manufacturing, and entrepreneurial skills 183 EVALUATION PROCESS: The project review teams should request and review the following information for each project -- * the company, its structure and ownerskip * the company's principals and management team * markets and market strategy * balance sheet and profit and loss (three years) * pro-forma financial statements (three years) * last available tax return * personal financial statements may be requested, depending on corporate structure * lender and lending institution * job creation or retention: general types of employment and compensation * special utility or environmental considerations Based on the above information, the project review team will evaluate the feasibility of the project and structure of the incentive package and recommend its approval, disapproval or restructuring. 184 CLOSING/MONITORING: Accountability to the taxpayers requires attention to resporisible closing and monitoring of projects which have received economic development support. Such attention can also be an opportunity to raise public awareness and to create a sense of community pride and achievement. The following elements should be part of follow-up activities with assisted company: a) Make all commitments in writing to avoid misunderstandings b) Establish a time frame for the commitment, ie. if construction is not started withing six months, the agreement is .null and void. Time frames help ensure that city funds do not get tied up with troubled projects and will not be available for others. c) If a loan, loan guarantee, or similar incentive is used, make sure all loan agreements are executed and security positions recorded. d) Hold ground-breaking or ribbon cutting ceremonies. Conduct plant tours or hold a Chamber/Industrial Foundation annual. meeting in a new or expanded plant to recognize the successful partnership between industry and the community. Build a broad base of support by inviting business and community leaders, employees and as large an audience as possible. Get good media coverage. Celebrate the company's success and your successes as a community. Everyone in the conununity has contributed through the sales tax; help them to feel they are part of the success. e) Require a simple annual report from the company identifying number of jobs created or retained, additional payroll and the increase in purchasing from local vendors. Companies can also be encouraged to note their participation in community affairs, such as United Way contributions, support for other non-profit civic aixd cultural activities. Use this information in newletters, local media, economic development promotitonal activities and annual reports. Use it in setting goals and reviewing progress. 185 -- PARIS, TEXAS ECONOMIC DEVELOPMENT 114% SALES TAX COLLECTION DATE PAYMENT CUMULATIVE PERIOD RECEIVED TO CITY AMOUNT Oct. 93 12-07-93 $47,393.79 $47,393.79 NOV. 01-11-94 53,433.06 100,826.85 Dec. 02-08-94 91,394.36 192,221.21 Jan. 94 03-08-94 43,959.84 236,181.05 Feb. 04-05-94 47,077.25 · 283,258.30 Mar. 05-10-94 81,485.82 364,744.12 Apr. 06-07-94 51,065.72 415,809.84 May 07-06-94 51,893.82 467,703.66 Jun. 08-09-94 82,277.18 549,980.84 Jul. 09-07-94 56,945.48 606,926.32 Aug. 10-11-94 61,765.67 668,691.99 Spt. 11-08-94 82,395.94 751,087.93 TOTAL 93-94 751,087.93 Oct. 12-06-94 55 341 23 806,429.16 Nov. 01-10-94 56 654 28 863,083.44 Dec. 02-07-94 99 900 56 962,984.00 -- Jan. 95 03-07-95 49 948 77 1,012,932.77 Feb. 04-11-95 48711 67 1,061,644.44 Mar. 05-09-95 74 241 91 1,135,886.35 Six Month Total 384.798.42 TOTAL COLLECTED $1,135,886.35 PARIS ECONOMIC DEVELOPMENT CORPORATION 1995-96 BUDGET ACCOUNT DESCRIPTION 93-94 94-95 YEAR TO PROPOSED ACTUAL BUDGET DATE 5/31/95 95-96 New Industry Projects $527 $290,000 -0- $666,125 Existing Industry Projects $51,560 290,000 $126,973 666,125 Paris Junior College -0- -0- -0- 97,500 T & K, Inc. -0- -0- -0- 25,000 B & W Sewer Line 135,640 -0- -0- -0- Debit Service Subtotal 187,728 580,000 126,973 1,454,750 office Supplies 97 -0- 1,346 4,000 Postage 41 -0- 352 2,000 Supplies Subtotal 139 -0- 1,698 6,000 Court costs: Special Services -0- -0- 465 -0- Travel Expenses 403 -0- 489 3,000 Contractural-Associations 1,500 -0- -0- -0- Promotional-Advertising -0- 70,000 28,270 77,000 Consultants 27,483 -0- 254 -0- Services Provided by City -0- 25,000 155 25,000 Compensation-Chamber CEO11,458 25,000 14,583 26,250 Charaber Assistant -0- -0- -0- 40,000 Contractural Subtotal 40,845 120,000 44,217 171,250 Leases 312 -0- -0- -0- Contingency -0- -0- -0- 10,000 Sundry Charges Subtotal 312 -0- -0- 10,000 Machinery Tools Eqpt. -0- -0- -0- 10,000 Capital Outlay-Eqpt. Subtotal -0- -0- -0- 10,000 Program Total 299,025 700,000 172,889 1,652,000 Dept. Total 229,025 700,000 172,889 1,652,000 187 PARIS ECONOMIC DEVELOPMENT CORPORATION 1995-96 BUDGET 93-94 94-95 YEAR PROPOSED REVENUE ACTUAL BUDGET TO DATE 95-96 5/31/95 Sales Tax $606,926 $741,260 $528,954 $770,000 Int. Earned 4,480 -0- 7,320 12,000 TOTAL REVENUE $611,406 $741,260 $536,279 $782,000 CASH CARRY OVER 870,000 ECONOMIC DEVELOPMENT PROJECTS - UNDESIGNATED FUND BALANCE 1,652,000 188 PEDC Industrial Projects 1.) Organizational Structure by Day & Associates Mission Statement Charge from Council Articles of Incorporation Bylaws Strategies Planning Process Critical Path Start-up 501 (c) (3) Operational Guidelines 2.) Pace Group Flexible Incentive Program Business and Retention Program Visioning 3.) Chamber Contract Staff Services $25,000.00 4.) B & W Sewer Line $135,640.53 208' of 8" sanitary sewer 1,890' of 15" sanitary sewer Crossing under railroad 5.) Soup Street Project $143,276.18 80,000 lbs. capacity reinforced concrete roadway 6.) Land Purchase $18,381.00 16.66 acres in NW Industrial Park from Tom Westbrooks on request from Paris Industrial Foundation 189 7.) Support of East Texas Gulf Highway $3,000.00 Association - Green Carpet Memorial Route 8.) Improvement to Industrial Drive $25,000.00 resurfacing of entry street to N.W. Industrial Park & T & K Machine. 9.) Site in N.W. Industrial Park 10 Acres for Model Building 10.) Electro Mechanical Technology Program $150,000.00 Paris Junior College - 2 year funding Year I - $105,000 Year 2 - $ 45,000 Boardmember Leon Williams made a motion, seconded by Boardmember Amis to adopt resolution. The motion carried unanimously. President Cecil stated that the next agenda item was consideration of and action on approving the amended Annual Budget for fiscal year 1995/1996. Resolution No. 95-012, amending the previously approved budget for the fiscal year 1995-1996 and directing the Secretary-Treasurer to delivery to the City Manager of the City of Paris for inclusion in his annual budget to be presented to the City Council was read. RESOLUTION NO. 95-012 WHEREAS, the Paris Economic Development Corporation, in keeping with Section 8.03 of its bylaws, did, on the 14th day of June, 1995, in Resolution No. 95-008, approve the budget for the fiscal year 1995-1996 and direct the Secretary-Treasurer to deliver the same to the City -- Manager of the City of Paris for inclusion in his annual budget to be presented to the City Council in accordance with the Charter of the City of Paris; and, WHEREAS, it is necessary that such budget be amended; and, WHEREAS, the amended budget, attached hereto as Exhibit A,' is hereby presented by the Secretary-Treasurer, and it is appropriate that such amended budget be approved; NOW THEREFORE; BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that tile amended budget, attached hereto as Exhibit A, be, and the same is hereby, approved; and, 190 BE IT FURTHER RESOLVED, that the Secretary-Treasurer be, and he is bereby, directed to deliver the amended budget, attached hereto as Exhibit A, to the City Manager of the City of Paris for inclusion in his annual budget to be presented to the City Council in accordance with the Cbarter of tbe City of Paris. PASSED AND ADOPTED this 12th day of July, 1995. Philip R. Cecil, President ATTEST: Richard M. Amis, Secretary-Treasurer T. K. Haynes, City Attorney City of Paris Budget Preparation Worksheet Economic Development Council : . 191 Boardmermber Fendley made a motion, seconded.by Boardmember Bray to adopt this resolution. The motion carried unanimously. President Cecil asked if there was any other business and there being none he declared the board meeting adjourned. PRESIDENT PHILIP CECIL ATTEST: ASSISTANT CITY CLERK BARBARA DENNY