1995-08-06-Minutes 91
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION
REGULAR MEETING
August 16, 1995
The Paris Economic Development Corporation met in a regular
meeting on Wednesday, August 16, 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 boardmembers present: Dick Amis, Curtis Fendley,
Leon Williams, and Barney Bray. Also present were ex-officio
board members, Bill Vaughan, Bobby Walters, Gary Vest, Economic
Development Director, Michael E. Malone, City Manager and T. K.
Haynes, City Attorney as Counselor.
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 Anderson to give the financial
report. Mr. Amderson 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 reported that the Texas
Economic Development Council Annual Conference is scheduled for
the month of September.
192
Mr. Vest stated that the next item on the agenda concerned
Prospect #08-101-95. He stated that the key element of this
project is the Bits International Company, and is a startup
manufacturing company. The company is relatively small by some
standards in that their initial employment will be eighteen
working in the factory and six management people for a total of
twenty-four. He said the hourly will have a good salary plus a
tremendous profit sharing program. He said the tax values with
the plant and the equipment that will be taxed will add over
one-half million dollars to our assessment rolls. He said the
company has made a commitment to utilize local suppliers and
vendors when possible. He said they would need a 20,000 square
foot pre-engineered metal building with a sixteen foot wall
height, 2,000 square foot of office and some varying foundation
requirements due to machinery. He said most of the machinery
in this plant will be controlled, heavy equipment with some of
the slabs isolated due to vibration. He said their product
will be mining bits.
Mr. Vest said BITCO is asking the Paris Economic Development
Corporation to construct the building. The board would enter
a contract with them on a lease/purchase contract whereby after
the third year they would purchase the building for the
outstanding costs of the building and the site. He said the
estimated cost of the building is $350,000.00. BITCO will be
using approximately $250,000.00 worth of equipment and they
have gone to the Northeast Texas Economic Development District
for this amount. He said the Northeast Texas Economic
Development District has agreed to provide the $250,000.00
equipment loan and will take a subordinate position on that
loan. Mr Vest said a revolving loan fund requires 25%
community participation and the Paris Economic Development
Corporation is being asked to provide that '25% which will be
$62,500.00 to make this loan. Working capital to be utilized
by the company is approximately $350,000.00 put together by a
bank consortium in Paris. Paris Economic Development
Corporation has asked BITCO to secure their loan with a cash
deposit, or an irrevocable letter of credit for Three years.
When the loans are repaid the $250,000.00 plus interest comes
back into the community and can be reloaned for other business
loans.
Mr. Vest said that in connection with the location he would
like to propose the northwest industrial area that the board
has looked at for constructing the model building. The
Industrial Foundation owns ten acres and his recommendation is
that they take five acres out of the ten acre site to locate
the building, giving more room for parking, outdoor storage and
future expansion. This property has the infrastructure the
sewer at the back of the property. It would just be a matter of
making a tap and the water would have to be extended five
hundred feet. Mr. Vest said this was the most cost effective
site which gives us some keys things such as the exposure to
the Loop frontage.
Boardmember Fendley questioned the wall height of sixteen
feet. Mr. Vest said there was significantly more cost involved
and they don't need the additional height. He said the sixteen
foot height was still a good height and can be used for a lot
of purposes.
193
President Cecil asked if the prospect was agreeable with the
proposed site selected and Mr. Vest said yes. Mr. Vest advised
that the cost of the waterline extension was approximately
$20,000.00.
-- President Cecil stated that Mr. Fendley's point was well taken
and the Board might want to negotiate some higher side walls.
Mr. 'Vest said they would be willing to do that. President
Cecil called for questions concerning this prospect and there
were none.
President Cecil asked the City Engineer to give a report
concerning the Model Building Project. Mr. Smith reported
there was no progress at this time. President Cecil stated
that if we approve the BITCO building project, the model
building will be on hold. This was the consensus of the board.
City Engineer Earl Smith stated that the beginning target date
in connection with the improvements to Industrial Drive was
August 28.
President Cecil asked Mr. Amis to give his report regarding the
purchase from the Paris Industrial Foundation. Mr. Amis said
he asked Earl, before the board gave up on that site, to look
at going the other direction with the sewer connecting with the
Battle's Lift Station. Mr. Smith said he felt that it was
prudent for the board to look at that because the entire 143
acres is unsewered at this point in time. Mr. Smith said he
looked at the drainage area that approaches the site, as that
-- is the most logical and best place to locate the sanitary sewer
for serving that area. Mr. Smith said the service area on the
inside of the Loop would be appr6ximately 300 acres and he
would propose a fifteen inch sewer, and the cost would be
approximately $220,000.00 including all the other costs of
construction, engineering, administration and legal. He said
he assumed we had to purchase easements and that there was
approximately 10% included for contingencies on the project.
Mr. Smith said he felt this was the route the Board should take
if they decide to go with this project. City Engineer Earl
Smith stated that the cost estimate includes enough money for a
consultant, if needed.
President Cecil advised that the next item was in connection
with Addendum No. One to the Employment Agreement. City
Attorney Haynes advised in accordance with the Board's request
they had amended the Contract to provide the numbers that were
authorized.
Res. 95-013,-Authorizing the execution of Addendum No. One to
the Employment Agreement dated June 15, 1994, between the Paris
Economic Development Corporation, the Lamar County Chamber of
Commerce, and Mr. Gray L. Vest was presented.
JOINT RESOLUTION NO. 95-001
RESOLUTION NO. 95-013
WHEREAS, the Paris Economic Development Co~oration and the Lamar County
Chamber of Commerce did heretofore, in PEDC Resolution No. 94-001 and Joint Resolution
No. 94-001, approve the execution of an Employmcnt Agreement with Gary L. Vest; and,
WHEREAS, the terms of the employment agreement are in need of revision, and an
Addendum Number One to Employment Agreement dated June 15, 1994, in the form attached
hereto as Exhibit A, should, in all things, be approved; NOW, THEREFORE,
194
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION AND THE LAMAR COUNTY CHAMBER OF COMMERCE, that
Addendum Number One to Employment Agreement dated June 15, 1994, in the form attached
hereto as Exhibit A, be, and the same is hereby, approved; and,
BE IT FURTHER RESOLVED, that Philip R. Cecil, President of the Paris Economic
Development Corporation, be, and he is hereby, authorized and directed to execute, on behalf
of the Paris Economic Development Corporation, Addendum Number One to Employment
Agreement dated June 15, 1994, in the form attached hereto as Exhibit A; and,
BE IT FURTHER RESOLVED, that William D. Vaughan, President of the Lamar
· County Chamber of Commerce, be, and he is hereby, authorized and directed to execute, on
behalf of the Lamar County Chamber of Commerce, Addendum Number One to Employment
Agreement dated June 15, 1994, in the form attached hereto as Exhibit A.
PASSED AND ADOPTED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION this 16th day of August, 1995.
Philip R. Cecil, President
ATTEST:
Richard 'M. Amis, Secretary-Treasurer
T.. K.Haynes,~City Attorney
PASSED AND ADOPTED BY THE LAMAR COUNTY CHAMBER OF
COMMERCE this 27th day of 'June , 1995.
William D. Vaughan, President
ATTEST:
George Struve, Secretary
195
ADDENDUM NUMBER ONE TO EMPLOYMENT-AGREEMENT
DATED JUNE 15, 1994, BETWEEN
THE PARIS ECONOMIC DEVELOPMENT CORPORATION,
THE LAMAR COUNTY CHAMBER OF COMMERCE AND
GARY L. VEST
STATE OF TEXAS )
)
COUNTY OF LAMAR )
KNOW ALL MEN BY THESE PRESENTS, that this Addendum Number One to
Employment Agreement dated June 15, 1994, between the Paris Economic Development
Corporation, the Lamar County Chamber of Commerce and Gary L. Vest, is made this 16th day
of August, 1995, by and between the Paris Economic Development Corporation, by and through
its President, Philip R. Cecil, duly authorized, hereinafter called PEDC, the Lamar County
Chamber of Commerce, by and through its President, William D. Vaughan, duly authorized,
hereinafter called CHAMBER, and Gary L. Vest, hereinafter called VEST.
WlTNESSETH
It is hereby mutually agreed by and among PEDC, CHAMBER and VEST that the
following paragraphs be amended to read as follows:
SECTION 3. Compensations
"PEDC and CHAMBER shall pay VEST a salary, before required deductions, of not less
than $5,687.50 per month, payable monthly. All such compensation shall be subject to the
customary withholding tax, Social Security tax, and other employment or payroll taxes as may
be required and provided by the United States of America or the State of Texas."
SECTION 15. PEDC's Contribution
"PEDC agrees to pay to CHAMBER $26,250.00 annually to fund its agreed proportional
one-third (1/3) of VEST's compensation. Such payment shall be paid monthly on or before the
196
first day of each month in the amount of $2,187.50."
EXECUTED on the 16th day of August, 1995.
PARIS ECONOMIC DEVELOPMENT
CORPORATION
By:
Philip R. Cecil, President
ATTEST:
Richard M. Amis, Secretary
APPROVED AS TO FORM:
T. K. Haynes, City Attorney
LAMAR COUNTY CHAMBER OF
COMMERCE
By:
William D. Vaughan, President
ATTEST:
George Struve, Secretary
Gary L. Vest
197
STATE OF TEXAS )
)
COUNTY OF LAMAR ) '
BEFORE ME, the undersigned authority, on this day personally appeared Philip R.
-- Cecil, President, Paris Economic Development Corporation, known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed
the same for the purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this __ day of August,
1995.
Notary Public, State of Texas
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared WILLIAM
D. VAUGHAN, President, Lamar County Chamber of Commerce, known to me to be the
person whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same for the purposes and consideration therein expressed and in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this __ day of August,
1995.
Notary Public, .State of Texas
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared GARY L.
VEST, known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this __ day of August,
1995.
Notary Public, State of Texas
-- Boardmember Curtis Fendley made a motion, seconded by
Boardmember Williams, that the resolution be adopted. The
motion carried unanimously.
President Cecil advised that the next agenda item was an action
item in connection with Prospect #08-101-95. Discussion by
board members was, subject to approval by the bank group, that
P.E.D.C. agree to build and lease back this building through a
lease/purchase agreement subject to negotiation of lease terms
and building specifications including building height and lease
breakdown. The second motion would be authorizing the Board's
participation subject to approval by the banks and authorizing
198
Corporation to the extent of $62,500.00 in the working capital
portion of this loan. Boardmember Amis made a motion that we
provide assistance to Prospect #08-101-95, which was seconded
by Boardmember Curtis Fendley.
Resolution No. 95-014,-providing assistance to Prospect
#08-101-95 including the 20,000 square building, a three year
lease/purchase at cost of land and building and $62,500.00 to
the Northeast Texas Economic Development Corporation
conditioned upon the bank group making their loan was presented.
RESOLUTION NO. 95-016
WHEREAS, the Paris Economic Development Corporation, hereinafter called PEDC,
has received a request for assistance from Prospect No. 08-101-95, Bits International Company
dba Bitco, hereinafter called Bitco, and it is deemed appropriate that such assistance be
provided; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the request for assistance from Bitco be, and the same is hereby, granted
as follows:
1. PEDC shall construct and furnish to Bitco upon a building site furnished
by PEDC and agreed to by Bitco a 20,000 square foot building containing
side walls of at least 16 feet, in accordance with specifications agreed to
by PEDC and Bitco, upon a lease purchase agreement at PEDC's cost for
a term of approximately three (3) years, or as otherwise negotiated; and
2. PEDC shall contribute $62,500.00, as PEDC's twenty-five percent (25 %)
share of the total loan by Northeast Texas Economic Development
District, hereinafter called NETEDD, to Bitco, such PEDC contribution
shall be secured by irrevocable letter of credit or Certificate of Deposit;
all of which is conditioned upon the loan in the amount of $250,000.00 being made by
NETEDD, and the master loan in the amount of approximately $350,000.00 being made by the
local participating banks as a 7(a) Small Business Administration (SBA) Loan to Bitco.
PASSED AND ADOPTED this 16th day of August, 1995.
Philip R. Cecil, President
ATTEST:
Richard M. Amis, 'Secretary-Treasurer
APPROVED AS TO FORM: ,
T. K. Haynes, City' Attorney
199
The motion carried unanimously and the resolution was adopted.
President Cecil asked if there was any other.business and there
being none he declared the board meeting adjourned.
PRESENT PHILIP CECIL
ATTEST:
ASSISTANT CITY CLERK, BARBARA DENNY