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1996-09-18-Minutes 265 MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING September 18, 1996 The Paris Economic Development Corporation met in their regular meeting on Wednesday, September 18, 1996, at 4:00 P.M., in the City Hall North Annex, Fire Training Room, Paris, Texas. President Curtis Fendley called the meeting to order with the following boardmembers presenf: Dick Amis, Michael Rhodes, and Barney Bray. Also present at this meeting were ex-officio boardmembers, Ike Jewett, Bobby Walters, Dr. Marshall Dougherty, Gary Vest, City Manager Michael E. Malone, and City Attorney T.K. Haynes. President Fendley stated 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 correction or additions to the minutes of the previous meeting and there were none. President Fendley stated since there were no corrections or additions to these minutes they stood approved as presented. President Fendley asked Boardmember Dick Amis to give the financial report in the absence of Mr. Gene Anderson, Director of Finance. Mr. Amis gave the report. Mr. Fendley called for questions and there were none. Boardmember Michael Rhodes made a motion, seconded by Boardmember Barney Bray, that the report be approved as presented. The motion carried unanimously. President Fendley stated that there would not be a President's Report given at this time. President Fendley asked Mr. Vest to give the Director's Report. Mr. Vest advised that due to advertising they had received fifty (50) responses since the last meeting. Mr. Vest stated that they had spent a great deal of time this last month on the Campbell Soup Project. He said that they had worked with all the elected officials and put together a proposal to Campbell Soup. He said Campbell Soup had made an announcement about reorganization in their North American Operations. He stated that in the press release, Campbell Soup advised there would be other asset utilization moves announced within the next thirty to forty-five days. Mr. Vest said one of the things Campbell Soup mentioned was the possibility of growth for the facility based on the closing of one of the other plants. Mr. Vest said that they based their proposal with all the incentives offered by P.E.D.C., the City, the County, and everyone involved on expansion. He said that he worked with the Texas Department of Commerce utilizing all the programs. He said Campbell Soup was extremely interested in training programs, the Skills Development Fund, the Smart Jobs Programs, etc. He said that Campbell Soup was extremely interested in utilizing the Enterprise Zone Program. He said that he applauded the Lamar County Appraisal District and the Mayor of Paris for their efforts. He said that they are currently working with Kimberly Clark in connection with their 266 distribution center. President Fendley called for questions concerning Mr. Vest's report and there were none. City Attorney Haynes stated that the City Council was holding a public hearing on the Enterprise Zone on Thursday, September 19, 1996, if anyone was interested in attending and thinks that someone should speak at this hearing. Boardmember Bray asked if the Board would consider having an outside consultant perform a study on the freeport exemption, etc. and the effects to the community comprised of a twenty-five mile radius. Mr. Vest said he had been in contact with a company concerning this information. Mr. Vest said there were several companies that the Board could look at when they get ready to have a study done. President Fendley asked Mr. Vest if he had enough information to bring this back to the Board in the next couple of months, and Mr. Vest agreed. President Fendley noted that the City Engineer was not present at the meeting and there was nothing to report. President Fendley asked Mr. Vest to discuss the resolution sponsoring the Northeast Texas Economic Development District Revolving Loan Fund. Mr. Vest said that they did not get funded in January when the Board had passed the previous resolution, so they had to reapply and they needed a new resolution to reapply for the Revolving Loan Fund. Mr. Vest said that all indications are that they will be funded this time. President Fendley called for questions concerning this request and there was none. City Attorney T.K. Haynes read the resolution. Resolution No. 96-011, sponsoring the Northeast Texas Economic Development District Revolving Loan Fund. , Boardmember Dick Amis made a motion, seconded by Boardmember Bray that this resolution be adopted, and the Board voted unanimously to adopt the resolution. PARIS ECONOMIC DEVELOPMENT CORPORATION RESOLUTION NO. 96-011 WHEREAS, the North East Texas Economic Development District includes areas which have been designated as Long Term Economically Distressed (LTED) by the Federal Economic Development Administration; and, WHEREAS, the North East Texas Economic Development District, because of such LTED designations, is eligible to apply for an Economic Development Administration Title IX Revolving Loan Fund Grant under the provisions of the Public Works and Economic Development Act of 1965, as amended; and, WHEREAS, the Revolving Loan Fund Grant in the amount of $500,000.00 would require a local match in the amount of $167,000.00; and, WHEREAS, these funds can only be used in these LTED designated areas for the ..... purpose of providing financing for economic development incentives; and, 267 WHEREAS, the Paris Economic Development Corporation has interest in and is located within an LTED designated area, recognizes the advantages of having access to a Revolving Loan Fund Program, and desires that these funds are made available to the North East Texas Economic Development District's LTED designated areas; and, WHEREAS, the North East Texas Economic Development District will serve as the applicant agency to receive and administer such funds; and, WHEREAS, the Paris Economic Development Corporation has funds which can be used, as needed, up to the amount of $167,000.00 for the purpose of satisfying the local match requirements; provided that the Economic Development Administration approves the North East Texas Economic Development Districts Revolving Loan Fund Grant Application, that other LTED areas will be given the opportunity and encouraged to participate as needed in the local match responsibilities, and that the Paris Economic Development Corporation reserves the right to periodically review and evaluate any changes in program guidelines which might affect the Paris Economic Development Corporation's commitment; NOW, THEREFORE, BE IT RESOLVED BY THE PARIS. ECONOMIC DEVELOPMENT CORPORATION, that the Paris Economic Development Corporation commits, as needed, up to $167,000.00 for local matching funds for the Revolving Loan Fund Program Grant; provided that the Economic Development Administration approves the North East Texas Economic Development Districts Revolving Loan Fund Grant Application, that other LTED areas will be given the opportunity and encouraged to participate as needed in the local match responsibilities, and that the Paris Economic Development Corporation reserves the right to periodically review and evaluate any changes in program guidelines which might affect the Paris Economic Development Corporation's commitment. PASSED AND ADOPTED this the 18th day of September, 1996. Curtis Fendley ATTEST: Richard M. Amis, Secretary-Treasurer APPROVE AS TO FORM: T. K. Haynes, City Attorney President Fendley discussed the public hearing on Enterprise Zone at the City Council Meeting to be held on September 19, 1996, and Mr. Vest stated that he would attend this meeting. He encouraged any other Boardmembers that would be interested in the Enterprise Zone to attend this meeting. President Fendley asked if there were any other items to be discussed at this time. Mr. Skipper Steely stated that he would like t.o be considered for a publication on a handbook of Paris Industries. He said perhaps a Handbook of Paris in the Year 2000 could be considered and review the past one hundred years. 268 President Fendley asked if there was any other business and there being none he declared the board meeting adjourned. President Curtis Fendley Assistant City Clerk Barbara Denny PARIS ECONOMIC DEVELOPMENT CORPORATION RESOLUTION NO. 96-012 WHEREAS, the Paris Economic Dcvclopmcnt Corporation is a non-profit corporation governed by the Development Corporation Act of 1979, and was established for the purpose of promoting, assisting, and enhancing economic development; and, WHEREAS, thc promotion and development of new business enterprises is deemed to benefit the public welfare, as the same results in the maintenance of a higher level of employment, economic activity, and stability; and, WHEREAS, the Paris Economic Development Corporation bas granted assistance to Bits International Company, dba Bitco, in the form of the construction of three (3) buildings on 8.119 acres of property on Loop 286 N.W.; the granting of a three (3) year lease agreement with an option to buy said property at PEDC's cost; the contribution of $62,500.00 to the Northeast Texas Economic Developmcnt District as PEDC's share of thc total loan made to Bitco; and the guaranteeing or seventy-five percent (75%) or the master loan made to Bitco by participating banks; and, WHEREAS, in order to assure Bitco's success in maintaining thc newly created jobs which are essential to the welfare and prosperity of the citizens of Paris, it is deemed appropriate that a loan in the amount of $50,000.00 be granted to Bitco under thc terms and conditions shown in the Promissory Note, tile form of which is attached hereto as Exhibit A; and, WHEREAS, in the interest of time, it further deemed appropriate that this resolution granting such loan be executed in accordance with Section 5.06 of the Bylaws of the Paris Economic Development Corporation; NOW, THEREFORE, BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that an operating costs loan in the amount of $50,000.00 be, and the same is hereby, granted to Bits International Company, dba Bitco, under the terms and conditions shown in the Promissory Note, tile form of which is attached hereto as Exhibit A; and, BE IT FURTHER RESOLVED, that this resolution be executed in accordance with Section 5.06 of the Bylaws of the 'Paris Economic Development Corporation. 269 PASSED AND ADOPTED this 27th day of September, 1996. Curtis Fendley, President Barney Bray,lll, Vice-President Richard M. Amis, Secretary-Treasurer Leon Williams, Director Michael Rhodes, Director ATTF~T: Richard M. Amis, Secretary-Treasurer APPROVED AS TO FORM: T. K. Haynes, City Attorney