1999-06-16-Minutes 447
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION
REGULAR MEETING
June 16, 1999
The Paris Economic Development Corporation met in a regular meeting on
Wednesday, June 16, 1999, at 4:00 P.M., in the City Council Chambers, City Hall,
Paris, Texas. President Mike Rhodes called the meeting to order with the
following boardmembers present: Jay Guest, Barney Bray, Melba Harris, and
Dick Amis. Also, present were ex-officio boardmembers Bobby Walters, Mayor
Charles Neeley, Chamber President George Struve, City Manager Michael E.
Malone, and Executive Director Gary Vest.
448
President Rhodes 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 were none. Boardmember Barney Bray made
a motion, seconded by Boardmember Melba Harris, that the minutes be approved
as presented. The motion carried unanimously.
President Rhodes asked Gene Anderson, Director of Finance, to give the financial
report for the month of May. Mr. Anderson gave the financial report. Mr. Anderson
stated that he would be glad to answer any questions concerning this report.
Boardmember Barney Bray made a motion, seconded by Boardmember Jay
Guest, that the financial report be approved as presented. The motion carried
unanimously.
President Rhodes asked Gary Vest to give the Director's Report. Mr. Vest
discussed responses received due to the advertising program, and stated that he
had attended the regional meeting of the Northeast Texas Economic Developers
Roundtable in Carthage on June 10. Mr. Vest stated that the groundbreaking at
the power plant had been held this past month. Mr. Vest stated that an
application has been submitted for an enterprise project for Campbell Soup on
the Pace Project.
President Rhodes stated that the next item was consideration of and action on a
resolution approving the Annual Plan of Work to be undertaken by the Board
during the fiscal year 1999/2000. Mr. Vest discussed the Annual Plan of Work for
fiscal year 199912000, as well as the Annual Budget for fiscal year 1999/2000. Mr.
Vest said that he would be glad to answer questions concerning these items.
After discussion, Boardmember Amis requested that Mr. Anderson at a future
date discuss the Board's current bonding capacity.
Mr. Vest stated that in connection with the BITCO lawsuit in Federal Court last
week we received a summary judgment and our Attorney Clark McCoy will file the
paperwork for the summary judgement of 1.4 million dollars against BITCO. He
said that the only item left is to pursue David Rhoades, who has been separated
off due to legal counsel, and has fought with us all through this lawsuit. Mr. Vest
stated that at some point the Board will have to decide whether to pursue this
item. After discussion, it was the consensus of the Board that Mr. Vest should
contact our attorney and ask him to contact Mr. Rhoades attorney regarding the
negotiation of a settlement and bring this information back to the next meeting
for discussion.
Resolution No. 99-003A, approving the Annual Plan of Work outlining the
activities, tasks, projects and programs to be undertaken by the Board during the
fiscal year 1999/2000.
449
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 99-003A
-- WHEREAS, the Paris Economic Development Corporation, in keeping with Section 4.03.
(4) of its Bylaws, is obligated to develop an annual plan of work outlining the activities, tasks,
projects and programs to be undertaken by the Board during the upcoming fiscal year and to
deliver the same to the City Manager of the City of Paris on or before June 30 of each year; and,
WHEREAS, the annual plan of work attached hereto as Exhibit A is hereby presented by
the Director of Economic Development, and it is appropriate that such plan be approved; NOW
THEREFORE;
BE IT RESOLVED' BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the 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 annual plan of work to the City Manager of the City of Paris.
PASSED AND ADOPTED this 16th day of June, 1999.
Michael Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
APPROVED AS TO FORM:
James C. Henderson, Acting City Attorney
450
Program of Work
1999 - 2000
Paris Economic
Development Corporation
451
Paris Economic 1999-:2000
PROGRAM OF WORK
Development Corporation
Executive Summary
The 1998-1999 year has seen tremendous growth and economic
activity for the Paris area. Paris has been experiencing a building
boom in commercial activity that has exceeded the level of activity
the year after the great tornado. This kind of activity supports the
very concept that drives the PEDC. If the employment opportunities
are available in the industrial sector: primary employers in
manufacturing, distribution/warehousing, and basic industrial
activities that conduct a value added activity, the commercial activity.
will follow. For those who say we are in the information age and that
is the expressway to the future, they are right. However, man cannot
survive on information alone. There is and always will be a need for
basic industry doing such things as pipe fabrication, Hght bulbs, food
products, plastic products, generating electricity, product packaging
and even diapers. The production of basic products that supply our
everyday human needs will always exist. That is where the PEDC
enters the picture to.carry out this program of work..
PEDC continues to follow its strategic long-term plan and
addresses the original charge by the Paris City Council. As we enter
the twenty-first century some immediate needs must be addressed to
support our industrial and economic .development. There is an old
cliche you only get one chance to make a first impression", Paris
needs a quality industrial park to present for potential industrial
locations. Through the cooperative efforts, of the Paris Industrial
Foundation merged with the marketing abilities of the PEDC, this can
be accomplished. Transportation continues to be at the forefront for
our community. If yo.u cannot move product in and out.with easy
access, you cannot win in the economic development game. Paris has
a need to make some of our industries more accessible by motor
freight carriers.
1651 Clarksville Street · Paris, Texas 75460
(903) 784-2501 · 1-800-PARIS, TX · Fax (903) 784-2503
452
Page 2
1999-2000
Program Of Work
Another point, of emphasis, whether we tike it or not, is as basic
as counting heads. Paris must have a good and accurate census
count in 2000. A 65% response rate will not accomplish what PEDC
wants for this city. Whatever our count, we will live with it for the
entire next decade. All federal programs will be derived from our
2000 census count.
The PEDC will continue to be the engine for Paris and Lamar
County. As we strive to have the best information possible and
communicate the best information possible, Paris will be a choice
location for primary employers.
TABLE OF CONTENTS
· Mission Statement
· Original Charge as Offered by the Paris City Council
· PEDC Overall Economic Development Program
· 1999-2000 Program of Work: Goals, Objectives, and Actions
Goal I - Retention and Expansion of Existing Industries
Goal II - Recruitment of New Primary Employers
Goal III - Start-Up Business and Small Business Development
Goal IV - Infrastructure/Training
· Projects
· Budget for 1999-2000
· 1998-1999 Report of Accomplishment
453
Mission Statement
PARIS ECONOMIC DEVELOPMENT CORPORATION
TO PLAN, PROMOTE, FINANCE, AND CONSTRUCT
OPPORTUNITIES FOR THE RETENTION, GROWTH, AND
ATTRACTION OF BUSINESS* THAT ENTHANCE THE LEVEL
OF EMPLOYMENT, THE ECONOMIC BASE AND QUALITY
OF LIFE IN PARIS AND LAMAR COUNTY, TEXAS
Goal I. Retention and Expansion of the Paris area existing
industrial sector jobs.
Goal II. Recruitment of new primary employers in
manufacturing, distribution/warehousing, and basic
industrial activities by marketing the locational
advantages and amenities of Paris.
Goal III. Encourage start-up business and small business
development through the entrepreneurial spirit of the
Paris economic environment.
Goal IV. Infrastructure development and workforce training to
support the other goals of the Paris Economic
Development Corporation.
* Definition of Business as used in this mission statement includes primary employers in
manufacturing, distribution/warehousing, and basic industrial activities which conduct
a value added activity which brings new dollars into the Paris economy.
454
ORIGINAL CHARGE
AS OFFERED BY THE PARIS CITY COUNCIL
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 following responsibilities and actions:
· To focus all Corporation endeavors on implementation of the Mission
Statement for the PEDC
· To operate only in a manner consistent with all federal, state, and local laws.
· To follow and implement the "501 (c) (3) Operational Guidelines" with the advice
and counsel of the City Attorney of the City of Paris. @
·To follow the Council "Policy Directives" for the PEDC in carrying out the
Council Charge. @
· To take all actions identified in the "Critical Path 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 the best legal,
ethical, and long-term 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 comprehensive business incentive 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
455
_ 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 charge of the Paris City Council was simple in
statement: To develop a comprehensive business incentive package with
approval criteria that would encourage 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 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 concentrating 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 policy recommendations; and
· Implementing specific actions.
Integral to the process of selecting goals and objectives is the
acknowledgment 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.
456
OVERALL ECONOMIC DEVELOPMENT PROGRAM
PAGE -2-
This program is founded on the retention, expansion, and
attraction of industrial/manufacturing activity because this economic
sector offers Paris the best potential to expand and diversify its economic
base - thereby creating and upgrading job opportunities and the Paris
quality of life. The development and attraction of primary employers
performing value added services and drawing new dollars from outside
the immediate and limited confines of the Paris market will best
accomplish this long-term objective.
The long term commitment to economic development should be
focused in the following area:
· The retention and expansion of existing industry.
· The marketing of Paris to recruit new industry.
· The coordination and cooperation of all Paris entities to
encourage the entrepreneurial spirit for start-up business and
small business development.
· The development of the community's infrastructure and
training to support industry.
457
GOAL I. Retention and Expansion
of Existing Industries
Retention and expansion of the Paris area existing industrial sector jobs.
OBJECTIVE
To maintain and retain existing industry in the Paris area and encourage
and assist the expansion of these currently existing industries and their
employment base.
ACTIONS
1.) Increase manufacturing sector employment.
2.) Increase Lamar County population by encouraging Census 2000
participation through the Census Count Committee.
3.) Participate with the Chamber of Commerce Industrial Managers
Group.
4.) Recognize local industries for expansion, growth, and outstanding
contribution to the Paris economy.
-- 5.) Initiate a program of personal visitation by PEDC to local industries.
6.) Work with the Chamber of Commerce to publish and distribute a
directory of Paris and Lamar County manufacturers.
7.) Work with local industry to secure prospect leads.
8.) Make local industries aware of any and all assistance programs for
the expansion of existing operations, such as: Enterprise Project, Tax
Phase-In, Industrial training, Skills Development Fund, and Smart Jobs.
GOAL I. Retention and Expansion
of Existing Industries
(continued)
ACTIONS
9.) Develop a cost-benefit analysis model to be used in determining
incentive packaging.
10.) Utilize staff to effectively carry out all economic development
functions of the PEDC.
458
GOAL II. Recruitment of New Primary Employers
Recruitment of new primary employers in manufacturing,
distribution/warehousing, and basic industrial activities by marketing
the locational advantages and amenities of Paris.
OBIECTIVE
Gain regional, state, and national recognition of the positive aspects of
doing business in Paris, to attract new primary employers.
ACTIONS
1.) Publish brochures that promote Paris as an optimal business
location.
2.) Develop advertising materials to be used in magazines, newspapers,
billboards, and direct mail.
3.) Develop target industry groups and conduct direct solicitation.
4.) Participate with industrial allies in trade shows of target industa'y
sectors, also participate with the World Economic Development
Alliance.
5.) Contact prospective industries for facility locations in Paris.
6.) Develop a library of statistical and demographic information on
Paris and the trade area.
7.) Work in close cooperation with industrial allies, such as TU Electric,
Lone Star Gas, Railroads, Texas Department of Agriculture, and the
Texas Department of Economic Development.
8.) Participate in the American Chambers of Commerce Researchers
Association (ACCRA) Cost of Living Survey.
459
-- GOAL II. Recruitment of New Primary Employers
(continued)
ACTIONS
9.) Participate in the ACCRA Community Profile Program.
10.) Maintain a Home Page for PEDC on the Internet with direct links to
other assisting agencies such as TDED, PJC and others that may be
developed.
11.) Participate in the Texas Department of Economic Development
Community Profile Program.
12.) Develop an industrial allies appreciation day.
13.) Promote Paris as a Lone Star City.
14.) Participate in the Texas Economic Development Council.
15.) Participate in the North East Texas Economic Developers
Roundtable.
16.) Participate in the American Economic Development Council.
17.) Participate in the Alliance of Sales Tax Cities to preserve the
Economic Development Sales Tax legislation.
18.) Utilize the tax phase-in incentive programs as defined by the City
of Paris.
19.) Promote the "Freeport Exemption" of taxes on goods in transit as a
location incentive.
460
GOAL III. Start-Up Business and Small
Business Development
Encourage start-up business and small business development through
the entrepreneurial spirit of the Paris economic environment.
OBIECTIVE
To have new innovative businesses develop in Paris, as well as to
increase the small business sector.
ACTIONS
1.) Coordinate closely with the Small Business Development Center to
provide assistance in the development of business plans and creative
financing.
2.) Work with the Ark-Tex Council of Governments to develop a
Revolving Loan Fund for Paris small businesses.
3.) Work with Ark-Tex Council of Governments to utilize the Chapman
Revolving Loan Fund.
4.) Work diligently with city government to establish one-stop, fast-
track business permitting.
5.) Promote the Paris Enterprise Zone Program as a locational incentive.
6.) Encourage and assist new industrial support services.
461
GOAL IV. Infrastructure/Training
Infrastructure development and workforce training to support the other
goals of the PEDC.
OBIECTIVE
Provide necessary support systems to entice existing industry to expand
in Paris and new industries to locate in Paris and provide a trained and
ready workforce for industry.
ACTIONS
1.) Support the improvement and preservation of transportation access
into Paris, ground, rail, and air.
2.) Develop industrial sites for prospective industry: cleared, identified
with development plans, including clear title to N.W. Industrial
District site.
3.) Re-evaluate a model building program to attract prospective
industry.
4.) Coordinate industry training needs with local school districts and
Paris Junior College
5.) Support the Local Workforce Development Board in providing
training and assistance to the Paris' area workforce.
6.) Promote the Smart Jobs Program to Paris and Lamar County
industries.
7.) Promote the Skills Development Fund to Finance training of Paris
area technical workforce through Paris Junior College.
8.) Encourage local industry and employers to utilize the Job Training
Partnership Act to facilitate training of new employers.
9.) Support the Texas Air Quality Coalition to maintain Paris'
attainment status.
10.) Explore projects to access the Texas Capital FUnd.
11.) Complete the I-Ieame Street Project to serve industry in that part of
Paris.
462
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 o Staff Services
4.) B&W Sewer Line
° 208' of 8" sanitary sewer
° 1,890' of 15" sanitary sewer
° Crossing under railroad
5.) Soup Street Project
° 80,000 lb. Capacity reinforced
° concrete roadway
6.) Land Purchase
° 16.66 acres in NW Industrial Park from Tom Westbrooks on
request from Paris Industrial Foundation
463
PEDC
Industrial Projects
(continued)
7.) Support of East Texas Gulf Highway Association
- Green Carpet Memorial Route
8.) Improvement to Industrial Drive resurfacing of
entry street to NW Industrial Park and T&K Machine
9.) Site in NW Industrial Park
° 16 acres for Model Building
° Clearing of NW Indusitrial Park in conjunction with
the Paris l ndustrial Foundation
10.) Electro Mechanical Technology Program
° Paris Junior College ~ 2 year funding
° Year 1 ~ $105,000
-- ° Year 2 ~ $45,000
1l.) Bitco - Bits International Company Construction
of Manufacturing Facility on NW Loop 286
12.) Improvement to Cox Field in conjunction with
TxDot Airport Improvement Grant Program
13.) Support of a study by Texas A&M University and the
Texas Economic Development Council on the effectiveness
of the Economic Development Sales Tax
14.) Acquisition of the Texas Northeastern Railroad right-of-way
to preserve for Rail Banking
15.) Campbell Soup retention project
16.) We Pack expansion in S.W. Industrial Park
464
PEDC
Industrial Projects
(continued)
17.) Acquisition of Precision Printing- Bond Issue $4.2 million, now
Paris Packaging
18.) Location of Panda Energy gas fired 1,000 mw electric generation
facility - Lamar Power Partners
19.) Chisum ISD adoption of the "Freeport Exemption"
20.) Location of Exide Warehouse
21.) Paving of 7th Street S.W. for the S.W. Industrial Park enhancement
22.) Buster Paving Transportation Services
23.) Turner International Piping Systems
465
PARIS ECONOMIC DEVELOPMENT CORPORATION
Revenue Statement
1999-2000
Anticipated Cash Position 9/30/99 $791,446
(These funds will be carried over to '99-'00 budget)
Revenue 1999-2000:
Estimated Sales Tax $850,000
Estimated Interest 25,000
Paris Packaging Payments 384,000
Total Current Revenue 1,259,000
Total Resouzces 2,050;446
Committed
Texas Air Quality Coalition 5,000
Bond Debt Payments 397,500
_ Tttrner International Piping Systems 500,000
($2,500,000 over 5 years)
Chapman Loan Payments 53,906
Audit 3,500
Chamber of Commerce 183,441
TotalCommitment-of Existing Funds 1,143,347
Available Funds For Projects '99-'00 $907;099
Long Term Obligations (as of 9-30-99):
Bonds Payable (over 19 years) $4,095,000
Chapman Loan (over 4 years) 202,950
TIPS (over 4 years) 2,000,000
__ Total Long Term Obligations $6,297,950
After discussion by the Board, Boardmember Jay Guest made a motion,
seconded by Boardmember Barney Bray that this resolution be adopted, and the
Board voted unanimously to adopt the resolution.
Resolution No. 99-004, approving the Annual budget for fiscal year 1999/2000.
466
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 99-004
WHEREAS, the Paris Economic Development Corporation, in keeping with Section 8.03
of its bylaws, is obligated to have a proposed budget prepared, approved and delivered to the City
Manager of the City of Paris on or before June 30 of each year 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, the budget attached hereto as Exhibit A is hereby presented by the Secretary-
Treasurer, and it is appropriate that such budget be approved; NOW THEREFORE;
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the budget attached hereto as Exhibit A be, and the same is hereby,
approved; and,
BE IT FURTHER RESOLVED, that the Secretary-Treasurer be, and she is hereby,
directed to deliver the 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
Charter of the City of Paris.
PASSED AND ADOPTED this 16th day of June, 1999.
Michael R Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
APPROVED AS TO FORM:
James C. Henderson, Acting City Attorney
467
PARIS ECONOMIC DEVELOPMENT CORPORATION
1999-2000
BUDGET
Acct. Description Actual Actual Projected Budget
# 96-97 97-98 98-99 99-2000
0001 New Industry Projects 1,300 7,206 3,600 453,560
Panda 300,000
Model Building 5,000
Turner International Piping 500,000 500,000
BITCO 98,113 388,812 10,000
Exide 20,000
PIF 50,000
Texas Air Quality Coalition 5,000 5,000
Existing Industry Projects 453,549
0002 Paris Packaging 64,000 384,000 397,500
We Pack 20,796 230,000
Cox Field 213,500
Bond Issuance Costs 55,778
Chapman Note 60,000 53,906
SUB TOTAL 312,913 555,814 1,548,278 1,863,505
1001 Office Equipment 250 2,778
0201 Office Supplies 9 3,503 3,073 3,000
0202 Postage 125 4,882 3,000 5,000
Sub Total 134.00 . $8,636 $8,851 $8,000
0301 Communications 1,316 1,480 1,500
0305 Spec. Service Fees/Consult. 4,216 19,218 10,650 10,000
0306 Travel 285 8,565 10,500 20,000
0307 Subscriptions 566 118 250
0310 Miscellaneous 429 3,004 0 1,000
0311 Associafions 65 11,725 1,200 10,000
0315 Promofional/Advertislng 89,949 78,265 8,659 50,000
0349 City Services 47,232 0 0: 0
0350 Compensation - Director 25,268 31,159 30,373 33,872
0351 Compensation - Asst. Director 16,100 40,469 41,508 37,819
Audit 3,500 3,500
SUB TOT~ 183,544 $194,287 $107,988 $167,941
0610 Reference Materials 3,000 1,000
0610-11 Contingency 883 883 10,000
SUB TOTAL 0.00 $883. $3,883 $11,000
TOTAL EXPENDITURES 496,591 759,620 1,660,149 2,050,446
468
PEDC SALES TAX
PARIS, TEXAS
PAYMENT RECEIVED
MONTH FY 93-94 FY 94-95 FY 95-96 FY 96-97 FY'97-98 FY98-99
OCTOBER $0.00 $61,765.67 $53,726.02 $50,244.83 $63,683.44 $58,570.47 --
NOVEMBER $0.00 $82,395.66 $79.569.37 $77,412.28 $53,381.20 $85.921.83
DECEMBER $47,393.79 $55,341,23 $54.066.71 $59,246.14 $59,805.56 $55,807.35
JANUARY $53;433.06 $56,654.28 $54,022.05 $50,817.15 $54,321.14 $71,219.00
FEBRUARY $91,394.36 $99,900.56 $92,166.94 $97.196.07 $107,747.64 $114,895.71
MARCH $43,959.84 $49.948.77 $53,800.70 $55.002.26 $48,096.79 $69,519.51
APRIL $47.077.25 $48,711.67 $50.769.21 $50,091.70 $51,420.19 $82.86'1.37
MAY $81,485.82 $74,241.91 $80,037.49 $82,059.57 $78,510.99 $77,153.28
JUNE $51,065.72 $56,438.98 $59,784.04 $59,567.28 $70,011.97 $68,425.88
JULY $51,893.82 $53,677.71 $52,223.32 $54,530.95 $56,428.61
AUGUST $82.277.18 $80,082.98 $81.267.97 $84,145.53 $91,223.12
SEPTEMBER $56,945.48 $64,865.46 $70,390.04 $75,433.10 $70.447.57
TOTAL $606,926.32 $784,024.88 $781,823.86 $804.746.86 $834,978.22 $654,374.40
President Rhodes asked if there was any other business and there being none he
declared the board meeting adjourned.
President Michael Rhodes
ATTEST:
City Clerk, Matfle Cunningham,