2000-06-28-Minutes 527
-- MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATIOH
ANNUAL MEETING
JUNE 28, 2000
The Paris Economic Development Corporation held their annual meeting on
Wednesday, June 28, 2000, at 4:00 P.M., in the City Council Chambers, City Hall,
Paris, Texas. President Michael Rhodes called the meeting to order with the
following boardmembers present: Jay Guest, Don Wall, and Melba Harris. Also,
present were ex-officio boardmembers Bobby Walters, Paul Swasko, County Judge
Chuck Superville, Mayor Michael Pfiester, Executive Director Gary Vest, City
Manager Michael E. Malone, and City Attorney Larry Schenk.
President Michael 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 Don Wall made a motion,
seconded by Boardmember Melba Harris, that the minutes be approved as
presented. The motion carried unanimously.
President Rhodes asked Mr. Vest to give the Director's Report. Mr. Vest discussed
responses received since the last meeting. Mr. Vest said that this past month he had
-- attended a meeting with SESACO concerning a possible future expansion. He
mentioned a recent trip to the TCIM Facility in Denison, a trip to Austin in connection
with the East Texas Gulf Highway Association Annual Presentation for the Green
Carpet Route, and the Chamber of Commerce trip to Washington, D.C. President
Rhodes asked if there were any other questions and there were none.
President Rhodes stated that the next item on the agenda was consideration of and
action on a resolution approving the Annual Plan of Work outlining the activities,
tasks, projects and programs to be undertaken by the Board during the fiscal year
2000/2001. Mr. Vest discussed the Annual Plan of Work for fiscal year 2000/2001
and stated that he would be glad to answer any questions concerning this item.
City Attorney Larry Schenk read the resolution.
Resolution No. 2000-003, approving the Annual Plan of Work outlining the activities,
tasks, projects and programs to be undertaken by the Board during the fiscal year
2000/2001.
After discussion by the Board, Boardmember Don Wall made a motion, seconded by
Boardmember Melba Harris that this resolution be adopted. The Board voted
__ unanimously to adopt the resolution.
528
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2000-003
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING THE
ANNUAL PLAN OF WORK; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
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:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the annual plan of work attached hereto as Exhibit A be, and the same
is hereby, approved.
Section 3. 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.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 28th day of June, 2000.
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
529
Larry W. Schenk, City- Attorney
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Program of Work
2000-2001
Paris Economic
Development Corporation
EXHIBIT A
531
2000-2001
Paris Economic PROGRAM OF WORK
· Development Corporation
Executive Summary
the Paris Economic Development Corporation looks at a program of work
beginning this new millennium it would benefit us to reflect back over the last couple of
decades to realize the changes in economic development.
During the 1990's only 15 states have shown any kind of increase in
manufacturing employment. Yet the amount of production has shown significant gains.
Automation and technology have allowed us to produce more with fewer and fewer
people. There could be no greater evidence of that than right here in our own Campbell's
Soup facility. Although Campbell's has been able to maintain a strong labor force with
the additions in Prego Sauce and the Pace Picante' Sauce, they produce significantly
more with less.
There has been so much advancement in the last two decades in our computing
-- ability. The personal computer on my desk has more capability than the building full of
computers that NASA used when it launched its first manned spacecraft. This
information age we live in today and the technology we possess is magnifying what we
can do in the workplace. When AT&T invented the cellular phone in 1985, the CEO of
AT&T was asked in a press conference what he thought the impact of cell phones would
be in the year 2000. AT&T's Chief Executive said he would not be surprised if there
were 900,000 cell phones use by the year 2000. Today there are 900,000 new cell phones
connected every three days.
Competition and deregulation have had a major impact in our business world.
Just look at the airline industry and the telephone business. With the impending
deregulation of the electric industry we can only guess what the future holds for that
industry. One thing we can be sure of is that as we embark into this new frontier of
electric deregulation, things will be changing faster than we can imagine. Paris is poised
to be a leader in this area with the continued service of TXU Gas and Electric, Lamar
1651 Clarksville Street * Paris, Texas 75460 · (903) 784-2501 * 1-800-PARIS, TX * Fax (903) 784-2503
http://www.paristexas.com "Email: pedc@paristexas.com
532
PEDC Executive Summary
2000-2001
: Page 2
Electric Cooperative, and the availability of power for our area through Lamar Power
Partners and Tenaska.
The reinvention of Encyclopedia Britannica is a good example of a company
changing with technology. Today you can access the entire encyclopedia via the Intemet
and it is updated daily. Encyclopedia Britannica has 300 employees now doing what they
used to do with 25,000. Instead of selling the volumes of information door to door, it is
totally free to users, paid for by the advertisers posted on their web site.
In the 1980's the Texas State Agency for economic development operated with a
budget of $1.5 million annually. Today the economic development corporations
supported by the sales tax spend more than $300 million a year on economic
development. The economic development function is no longer driven solely by the
smoke stack chaser with an incentive package in hand. The cookie cutter presentation is
no longer good enough, each development opportunity must be considered on an
individual basis considering what is right for the industry and what is right for the
community.
To compete in today's industrial revolution we must be constantly imaovative to
address new productivity potential in a global economy. Paris has a great history of pro-
active leadership in economic development going back to working with railroads, the
utility companies and now the economic development corporation. Paris and Lamar
County have the potential to have a steady economic growth over the next decade
(1.5%/year) if we maintain an open mind, are prepared with necessary infrastructure
(water, sewer, streets and highways, electricity, and broad band communications),
provide necessary dollars and a pro-active leadership.
Nationwide we are facing a shrinking pool of labor while Texas and Paris have an
available labor force that can be a location advantage and a potential for growth. The key
to utilizing this advantage will be in education. Can we train this potential workforce to
533
PEDC Executive Summary
2000-2001
Page 3
meet the jobs of tomorrow? Business should have a major interest in education, primarily
because of what business and industry are spending to prepare its workforce.
PEDC will continue to be the focal point for the development of Paris but we
must continually work to be innovative in what we do.
534
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 2000 - 2001
· 1999-2000 Report of Accomplishment
535
-- Mission Statement
PARIS ECONOMIC DEVELOPMENT CORPORATION
TO PLAN, PROMOTE, FINANCE, AND CONSTRUCT OPPORTUNITIES FOR THE
RETENTION, GROWTH, AND ATTRACTION OF BUSINESS* THAT ENHANCE
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 H. 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 workfome 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.
536
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 Counell 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
-- 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.
538
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.
539
-- 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. Participate with the Chamber of Commerce Industrial Managers Group.
3. Recognize local industries for expansion, growth, and outstanding contribution to the
Paris economy.
4. Initiate a program of personal visitation by PEDC to local industries.
5. Work with the Chamber of Commeme to publish and distribute a directory of Paris
and Lamar County manufacturers.
6. Work with local industry to secure prospect leads.
7. 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.
8. Conduct cost-benefit analysis to be used in determining incentive packaging.
9. Utilize staff to effectively carry out all economic development functions of the PEDC.
54O
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.
OBJECTIVE
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 industry sectors.
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 TXU Electric & 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.
9. Participate in the ACCRA Community Profile Program.
10. Maintain a Home Page for PEDC on the Interact with direct links to other assisting
agencies such as TDED, PJC and others that may be developed.
541
-- GOAL II. RECRUITMENT OF NEW PRIMARY
· EMPLOYERS
(continued)
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 Developer's Roundtable.
16. Participate in the American Economic Development Council.
17. Participate in the TEDSTA (Texas Economic Development Sales Tax Association).
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.
542
GOAL IH. START-UP BUSINESS AND SMALL
BUSINESS DEVELOPMENT
Encourage start-up business and small business development through the entrepreneurial
spirit of the Paris economic environment.
OBJECTIVE
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.
543
GOAL IV. INFRASTRUCTURE/TRAINING
Infrastructure development and workforce training to support the other goals of the
PEDC.
OBJECTIVE
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 Texas Workforce Commission and 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.
544
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 Plan
· Business and Retention Program
· Visioning
3.) Chamber Contract
· StaffServices
4.) B&W Sewer Line
· 208' of 8" sanitary sewer
· 1890' of 15" sanitary sewer
· Crossing under railroad
5.) Soup Street Project
· 80,000 lb. Capacity railroad
· Concrete roadway
6.) Land Purchase
· 16.66 acres in NW Industrial Park from Tom Westbrooks on request
from Paris Industrial Foundation
7.) Support of East Texas Gulf Highway Association ~- Green Carpet
Memorial Route
545
8.) Improvement to Industria! 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 Industrial Park in conjunction with the Paris
Industrial Foundation
10.) Electro Mechanical Technology Program
· Paris Junior College - 2 years funding
· Year 1 ,~ $105,000
· Year 2 -~ $45,000
11.) 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 ora 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 SW Industrial Park
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"
546
20.) Location of Exide Warehouse
21.) Paving Of 7th Street SW for the SW Industrial Park enhancement
22.) Buster Paving Transportation services
23.) Turner International Piping
24.) Extension of Park St. in NW Industrial Park
25.) 5 acre land grant to Mark Cunningham for construction of a 30,000 ft
warehouse
26.) Lansing Grain Company-transloading facility on the Kiamichi
Railroad
547
PARIS ECONOMIC DEVELOPMENT CORPORATION
Revenue Statement
2000 - 2001
-- Anticipated Cash Position 9/30/00 $1,417,796
(These funds will be carried over to 2000/01 budget)
Revenue 2000 - 2001:
Estimated Sales Tax $900,000
Estimated Interest 25,000
Paris Packaging Payments 384,000
Total Current Revenue $1,309,000
Total Resources $2,726,796
Committed Funds:
Texas Air Quality Coalition 5,000
Bond Debt Payments 393,811
Turner International Piping Systems 500,000
($2,500,000 over 5 years)
Hearne Street Extension 250,000
__ Chapman Loan Payments 53,906
TCIM ($500,000 over 5 years) 150,000
Audit 3,500
Chamber of Commerce 226,593
Total Commitment of Existing Funds $1,582,810
Available Funds For Projects 2000 ~- 2001 $1,143,986
Long Term Obligations (as of 9-30-00):
Bonds Payable (over 18 years) $3,980,000
Chapman Loan (over 3 years) 158,565
TIPS (over 3 years) 1,500,000
TCIM (over 3 years) 300,000
Total Long Term Obligations $5,938,565
548
PARIS ECONOMIC DEVELOPMENT CORPORATION
2000-2001
BUDGET
Acct. ~ ACTUAL ACTUAL PROJECTED BUDGET
# DESCRIPTION .: 97-98 98-99 99-00 :2000,01
0001 New Industry Projects 7,206 571,993
Panda 300,000 0
Model Building 0 0
Turner International Piping 500,000 500,000 500,000
BITCO 388,812 10,023 3,849 0
Exide 20,000 0 0
PIF 50,000 0 0
Lansing Grain 6,000 0
Texas Air Quality Coalition 5,000 5,000 5,000
TCIM 5,000 200,000 125,000
Existing Industry Projects 571,993
0002 Paris Packaging 64,000 64,000 379,096 393,811
We Pack 20,796 262,383 3,488 0
Hearn St. Extension 1,200 250,000
Cox Field 0 0
Park St. Extension 57,600 0
Bond Issuance Costs 55,778 0
Chapman Note 53,906 53,906 53,906
SUB TOTAL
..555,814 1,251,090 1,210,139 2,471,703
1001 Office Equipment 250 2,800 1,500 2,000
0201 Office Supplies 3,503 2,720 4,700 3,000.
0202 Postage 4,882 661 1,500 1,500
SUB TOTAL $8,636 $6,181 $7,700 $6,500
10301 ! Communications 1,316 1,718 1,865 2,000
0305 ! Specisl Services Fees/Cons. 19, 216 11,175 375 20,000
0306 Travel 8,565 12,638 15,000 20,000
0307 Subscriptions 566 0 250
0310 Miscellaneous 3,004 25 500 26,000
0311 Associations 11,725 1,308 5,000 5,000
0315 Promotional/Advertising 78,265 12,414 70,000 90,000
0349 City Services 0 0 0
0350 Compensation - Director 31,159 30,373 33,708 35,843
0351 Compensation - Asst. Director 40,469 43,721 42,412 33,000
Audit 3,040 3,550 3,500
SUB TOTAL $194,287 $116,412 $172,410 $235,593
0610 Reference Materials 0 1,000 3,000
0610-11 Contingency 883 4,927 234 10,000
SUB TOTAL $883 $4,927 $1,234 $13,000
TOTALEXPENDITURES $759,620 $1,378,610 $1,391,483 $2,726,796
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PEDC - ACCOUNT DESCRIPTIONS
ACCOUNT # DESCRIPTION -
0001 New Industry Projects - funds committed to
accommodate new industrial locations to
Paris
0002 Existing Industry Projects - funds committed
to the retention and/or expansion of
industrial facilities in Paris
0201 Office Supplies
0202 Postage
0301 Communications - Long distance telephone
0305 Special Service Fees - Consultants, Legal,
etc.
0306 Travel expenses for Director, training,
seminars, travel claims, plane tickets,
special meeting lunches, etc.
0307 Subscriptions - newspapers
0310 Miscellaneous
0311 Contractual Associations - Texas Marketing
Team, American Economic Development Council.,
Texas Research League, World Economic
Development Alliance, Texas Economic
Development Council
0315 Promotional - Advertising
0349 Services provided by the City of Paris
0350 Compensation - Director
0351 Compensation - Assistant Director
0610 Contingency - Industrial Appreciation AWards
and reference materials
1001 Office furniture & fixtures
550
PEDC Sales Tax Revenue
94-95 95-96 96-97 97-98 98-99 99-00
October 61,765.67 53,728.02 59,244.84 63,583.43 58,570.48 57,958.09
November 82,395.67 79,569.37 77,412.27 83,381.20 85,921.83 88,720.24
December 55,341.23 54,066.72 59,246.13 59,805.55 55,807.36 81,282.23
January 56,854.28 54,022.05 50,817.13 54,321.15 71,219.01 63,696.47
February 99,900.57 92,169.45 97,196.07 107,747.64 114,895.72 108,920.58
March 49,948.78 53,800,70 55,002.26 48,096,80 69,519.52 68,882.75
April 48,711.67 50,769.21 50,091.71 51,420.20 62,863.87 62,538.06
May 74,241.91 80,037.49 82,059.57 78,511.00 77,153.29 131,801.54
June 56,438.99 59,784.04 59,567.29 70,011.97 68,425.87
July 53,677.72 52,223.32 54,530.95 56,428.61 61,688.08
August 80,082.96 81,267.98 84,145.53 91,223.12 98,697.42
September 64,865.45 70,390.05 75,433.13 70,447.58 67,370.03
PEDC 784,024.89 781,826.41 804,746.89 834,978.23 892,132.49 663,797.96
Average per month 65,335.41 65,152.20 67,062.24 69,581.52 74,344.37 82,974.75
Average Revenue Per Month
551
PEDC 1999
ACTIVITY sUMMARY
Advertising Responses: 102
Prospect Visits: 9
Three New Testimonial Ads:
Dave Chapman, Turner International Piping Systems
Lowell Trotter, FP&L Lamar Power Partners
Bill Carver, Paris Packaging
Major Projects:
Extension of Park Street in N. W. Industrial Park.
Land Grant to Mark Curmingham.
Lansing Grain, transloading facility.
Kimberly-Clark, Enterprise Project for distribution center expansion.
Earth Grains, 35,000 square feet expansion, 40 new jobs, received
Smart Jobs Grant (announced unofficially).
Ground Breaking Ceremony for FP&L Lamar Power Partners May
18, incentive payment made to Panda.
Turner International Piping Systems, Enterprise Project, April,
incentive payment made to TIPS.
Trade Shows and Conferences:
Eurotex Trade Show - Dallas Info Mart April 15 & 16, sponsored by
the Texas Department of Economic Development.
Supply Chain Expo - Baltimore convention Center September 20-25.
Export Conference, North East Texas Economic Developers
Roundtable, Marshall, TX March 11.
Economic Development Workshop, East Texas Council of
Governments, Tyler, TX May 18.
Texas Capital Fund Seminar, TDED, A&M Extension, Overton, TX.
Texas Economic Development Conference, September - Mid-Year
Conference in May.
552
Active Association Participation:
North East Texas Economic Developers Roundtable
Texas Economic Development Council
Texas Air Quality Coalition
Texas Economic Development Sales Tax Association
Southern Economic Development Council
American Economic Development council
Other significant Points of Interest:.
Lamar County qualifies as a full purpose Strategic Investment Area -
this qualifies industrial locations for Job Creation Tax Credits,
Investment Tax Credits, and Research and Development Tax
Credits (PEDC adopted a resolution supporting this legislation).
Secured the Post Office location for downtown Paris.
Supported the East Texas gulf Highway Association in the Green
Carpet Memorial Route presentation to TxDOT.
Received a bonus Enterprise Project Designation for the outstanding
work of Lisa Wright on the TIPS application.
Southwestern Foundry - change in ownership, open house on June 17
Two significant meetings with the Texas Natural Resource
Conservation Commission
1. Met with Commissioner Ralph Marquez in Gainesville
January 25.
2. Met with Jeff Saitas, Executive Director, in Austin on July 7.
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President Rhodes stated that the next item on the agenda was consideration of and
action on a resolution approving the Annual Budclet for fiscal year 2000/2001. Mr.
Vest discussed the Annual Budget for fiscal year 2000/2001, and stated that he
would be glad to answer any questions concerning this item.
City Attorney Larry Schenk read the resolution.
Resolution No. 2000-004, approving the Annual Budget for fiscal year 2000,2001.
After discussion by the Board, Boardmember Meiba Harris made a motion, seconded
by Boardmember Don Wall, that this resolution be adopted. The Board voted
unanimously to adopt the resolution.
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PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2000-004
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING THE
ANNUAL BUDGET; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
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:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
__ Section 2. That the budget attached hereto as Exhibit A be, and the same is hereby,
approved.
Section 3. 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.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 28th day of June, 2000.
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
558
APPROVED AS TO FORM:
Larry ySchenk, City Attorney
559
PARIS ECONOMIC DEVELOPMENT CORPORATION
2000-2001
BUDGET
Acct
# ACTUAL ACTUAL PROJECTED BUDGET
· DESCRIPTlON ~ 97-98 98-99 : 99-00 :2000-01 ·
0001 New Industry Projects 7,206 571,993
Panda 300,000 0
Model Building 0 0
Turner International Piping 500,000 500,000 500,000
BITCO 388,812 10,023 3,849 0
Exide 20,000 0 0
PIF 50,000 0 0
Lansing Grain 6,000 0
Texas Air Quality Coalition 5,000 5,000 5,000
TCIM 5,000 200,000 125,000
Existing Industry Projects 571,993
0002 Paris Packaging 64,000 64,000 379,096 393,811
We Pack 20,796 262,383 3,488 0
Hearn St. Extension 1,200 250,000
Cox Field 0 0
Park St. Extension 57,600 0
Bond Issuance Costs 55,778 0
Chapman Note 53,906 53,906 53,906
SUBTOTAL 555,814 1,251,090 1,210,139 2,471,703
1001 Office Equipment 250 2,800 1,500 2,000
0201 Office Supplies 3,503 2,720 4,700 3,000
0202 Postage 4,882 661 1,500 1,500
SUB TOTAL $8,636 $6,1 81 $7,700' $6,500
10301 I Communications 1,316 1,718 1,865 2,000
0305 Special Services Fees/Cons. 19,218 11,175 375 20,000
0306 Travel 8,565 12,638 15,000 20,000
0307 ~ Subscriptions 565 0 250
0310 Miscellaneous 3,004 25 500 26,000
0311 Associations 11,725 1,308 5,000 5,000
0315 Promotional/Advertising 78,265: 12,414 70,000 90,000
0349 City Services 0 0 0
0350 Compensation - Director 31,159 30,373 33,708 35,843
0351 Compensation - Asst. Director 40,469 43,721 42,412 33,000
Audit 3,040 3,550 3,500
SUB TOTAL $194,287 $116,412 $172,410 $235,593
0610 Reference Materials 0 1,000 3,000
06~0-]~ Contingency 883 4,927 234 10,000
SUB TOTAL $883 $4,927 $1,234 $13,000
TOTAL EXPENDITURES $759,620 $1,378,610 $1,391,483 $2 726 796
EXHIBIT A
56O
PEDC - ACCOUNT DESCRIPTIONS
ACCOUNT ~ DESCRIPTION
0001 New' Industry Projects - funds committed to
accommodate new industrial locations to
Paris
0002 Existing Industry Projects - funds committed
to the retention and/or expansion of
industrial facilities in Paris
0201 Office Supplies
0202 Postage
0301 Communications - Long distance telephone
0305 Special Service Fees - Consultants, Legal,
etc.
0306 Travel expenses for Director, training,
seminars, travel claims, plane tickets,
special meeting lunches, etc.
0307 Subscriptions - newspapers
0310 Miscellaneous
0311 Contractual Associations - Texas Marketing
Team, American Economic Development Council,
Texas Research League, World Economic
Development Alliance, Texas Economic
Development Council
0315 Promotional - Advertising
0349 Services provided by the City of Paris
0350 Compensation - Director
0351 Compensation - Assistant Director
0610 Contingency - Industrial Appreciation Awards
and reference materials
1001 office furniture & fixtures
561
-- President Rhodes stated that the next item on the agenda was authorizing the
execution of an Incentive Agreement with the Earthgrains Company. He said that
this company has an ongoing expansion at this time and Mr. Vest advised that this
expansion is almost complete. Mr. Vest said that this Incentive Agreement has been
discussed for approximately one year. He said that one of the items presented to
this company was an incentive payment whiCh called for the minimum creation of
twenty (20) jobs according to our Flexible Incentive Plan at $2,000.00 per job, with
some flexibility of anywhere from 20 to 40 jobs created in this project. He said that
it specified in the agreement the time period that they have to create these jobs and
the time period required for jobs retention. He asked for any questions concerning
this item.
City Attorney Larry Schenk read the resolution.
Resolution No. 2000-005, authorizing the execution of an Incentive Agreement with
The Earthgrains Company.
After discussion by the Board, Boardmember Jay Guest made a motion, seconded
by Boardmember Don Wall, that this resolution be adopted. The Board voted
unanimously to adopt the resolution.
562
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2000-005
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING AND
AUTHORIZING THE EXECUTION OF AN INCENTIVE AGREEMENT
WITH THE EARTHGRAINS COMPANY; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Paris Economic Development Corporation is a non-profit corporation
governed by the Development Corporation Act of 1979 (the Act) and was established for the
purposes of promoting, assisting, and enhancing economic development; and,
WHEREAS, the means and measures authorized by the Act and the assistance provided
therein with respect to financing are found to be in the public interest and serve a public purpose
of the state in promoting the welfare of the citizens of the state economically by the securing and
retaining of business enterprises and the resulting maintenance of a higher level of employment,
economic activity, and stability; and,
WHEREAS, in keeping with the purposes for which the legislature enacted the
Development Corporation Act of 1979 and the purposes for which the voters of the City of Paris
established the Paris Economic Development Corporation, it is deemed appropriate that an
incentive agreement be entered into with The Earthgralns Company; and,
WHEREAS, the form of the Incentive Agreement, attached hereto as Exhibit A, should,
in all things, be approved, and the President, Michael R. Rhodes, should be authorized to execute
the same; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the form of the Incentive Agreement with The Earthgralns Company,
attached hereto as Exhibit A, be, and the same is hereby, approved.
Section 3. That the President of the Board be, and he is hereby, authorized and directed
to execute, on behalf of the Paris Economic Development Corporation, the Incentive Agreement,
under the terms and conditions and in the form shown in Exhibit A, attached hereto.
Section 4. That this resolution shall be effective from and after its date of passage.
563
PASSED AND ADOPTED this 28th day of June, 2000.
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
564
INCENTIVE AGREEMENT
STATE OF TEXAS ) --
) KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR )
THAT, the PARIS ECONOMIC DEVELOPMENT CORPORATION, acting by and
through its President, Michael R. Rhodes, duly authorized, hereinafter called PEDC, and THE
EARTHGRAINS COMPANY, acting by and through its authorized officer whose signature
appears below, hereinafter called EARTHGRAINS, do hereby contract and agree as follows:
1. EARTHGRAINS agrees to make improvements to its existing facilities in Paris,
Texas, as follows: Expansion in production capacity in the Paris plant consisting
of additional production lines and modifications to the existing buildings and
utilities. Such improvements will be made upon the same property described in
that certain Tax Abatement Agreement between the City of Paris, Paris, Texas, and
The Ear.grains Company, dated February 14, 2000, and will consist of
machinery, equipment, and utilities installed to manufacture bakery products; and
an approximately 33,000 square foot expansion to the existing bakery.
EARTHGRAINS further agrees to create at least twenty (20) new, permanent jobs
either (a) at the site of the improvements, or (b) in support of operations performed
by others at the site of the improvements.
2. The improvements described in Paragraph 1 hereof will be at a cost in excess of
$I0,000,000.00 (subject to verification as described in the aforementioned Tax
Abatement Agreement), and shall be substantially completod on or about March 28,
2001; provided, that EARTHGRAINS shall have such additional time to complete
the improvements as may be required in thc event of "force majeure" if
EARTHGRAINS is diligently and faithfully pursuing completion of-the
improvements, For this purpose, "force majeure" shall mean any contingency or
cause beyond the reasonable control of EARTHGRAINS including, without
limitation, acts of God, or the public enemy, any natural disaster, war, riot, civil
commotion, insurrection, governmental or de facto governmental action, unless
caused by acts or omissions of EARTHGRAINS, fires, explosions, accidents,
floods, and labor disputes or strikes.
It is further agreed that the new, permanent jobs describod in Paragraph 1 hereof
shall be created by not later than June 20, 2001.
3. In return for the consideration described in Paragraphs 1 and 2 hereof, PEDC
agrees to provide forty thousand dollars ($40,000.00) immediately upon receipt of
evidence of the creation of the new, permanent jobs described in Paragraph I
565
hereof. Thereafter, PEDC agrees to pay two thousand dollars ($2,000.00) per job
for each new, permanent job created as a result of the expansion in excess of the
twenty (20) jobs described in Paragraph 1 hereof, and created in the tinge frame
-- ending December 20, 2002, not to exceed twenty (20) additional jobs in excess of
the initial twenty (20) provided herein. Said additional jobs must be for work to
be performed substantially either (a) at the site of the improvements, or (b) in
support of operations performed by others at the site of the improvements.
Incentive payments for all such new, permanent jobs shall be made upon the
presentation by EARTHGRAINS to the PEDC of its Texas Workforce Commission
Employer's Quarterly Report evidencing such jobs. EARTHGRAINS further
agrees that, for a period of seven (7) years from the date of this Agreement, it will
continue to provide the PEDC with a copy of its Texas Workforce Commission
Employer's Quarterly Report within thirty (30) days of its filing of the same with
the Texas Workforce Commission to evidence the continued existence of such new,
permanent jobs.
EARTHGRAINS agrees that, for a period of seven (7) years from the date of this
Agreement, it will not reduce the number of such new, permanent jobs so created.
4. In the event that the improvements described in Paragraph 1 hereof are not
completed in accordance with this Agreement or the expenditure for the
improvements does not meet the amount required herein, then EARTHGRAINS
'-- shall return all incentives paid to it within sixty (60) days of the date of notice of
default.
5. In the event that the jobs created under this Agreement are not maintained in
accordance with this Agreement, then EARTHGRAINS shall return any and all
incentives paid to it for the non-maintained jobs within sixty (60) days of the date
of notice of default.
6. This Agreement sets forth the entire understanding regarding cash incentives
between the parties, and any other understandings or agreements shall be canceled
and superseded by this Agreement upon the date of execution hereof. None of the
terms of this Agreement shall be waived, discharged, altered or modified in any
respect, except by an agreement in writing signed by both parties and specifically
referring to this Agreement. The captions in this Agreement are included for
convenience only and shall not be taken into consideration in any construction or
interpretation of this Agreement or any of its provisions. This Agreement is
performable in Lamar County, Texas, and shall be governed by, construed and
enforced in accordance with the laws of the State of Texas. The provisions of this
Agreement shall apply to, bind and inure to the benefit of the PEDC,
EARTHGRAINS, and their respective successors, and permitted assigns, if any.
566
7. The terms and conditions of this Agreement are binding upon the successors and
assigns of all parties hereto. However, this Agreement shall not be assigned or
transferred by EARTHGRAINS, without the prior written consent of the PEDC,
which consent shall be at the sole discretion of the PEDC, except that this
Agreement may be assigned to either the Parent Corporation or a wholly-owned
subsidiary of EARTHGRAINS without prior approval of the PEDC, provided that
the facility remains in operation in the city of Paris.
8. Venue for any actions arising under this Agreement shall lie exclusively in the
courts of Lamar County, Texas, for any state court action, and in the U.S. District
Court for the Eastern District of Texas for any Federal Court action.
EXECUTED on the 28th day of June; 2000.
PARIS ECONOMIC DEVELOPMENT
CORPORATION
By:
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
THE EARTHGRAINS COMPANY
By:
Name:
Title:
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared MICHAEL R.
RHODES, President of Economic Development of the Paris Economic Development Corporation,
Paris, Texas, 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 28th day of June, 2000.
Notary Public, State of Texas
567
STATE OF )
)
COUNTY OF )
__ BEFORE ME, the undersigned authority, on this day personally appeared
(Name), (Title)
of The Earthgrains Company, 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
,2000.
Notary Public, State of Texas
568
President Rhodes stated that the next item on the agenda was authorizing the
execution of an Incentive Agreement with TCIM Services. He asked Mr. Vest to
discuss this item. Mr. Vest said that this Incentive Agreement was discussed in
great detail at a recent board meeting. Mr. Vest said that he negotiated within the
parameters that were given to him by the Board and this incentive agreement was
the result of his negotiations with TCIM Services. The Board discussed the Incentive
Agreement and there were no questions.
City Attorney Larry Schenk read the resolution.
Resolution No. 2000-006, authorizing the execution of an Incentive Agreement with
TCIM Services.
After discussion bythe Board, Boardmember Melba Harris made a motion, seconded
by Boardmember Jay Guest, that this resolution be adopted. The Board voted
unanimously to adopt the resolution.
568
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2000-006
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING AND
AUTHORIZING THE EXECUTION OF AN INCENTIVE AGREEMENT
WITH TCIM SERVICES, INC.; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND 'PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Paris Economic Development Corporation is a non-profit corporation
governed by the Development Corporation Act of 1979 (the Act) and was established for the
purposes of promoting, assisting, and enhancing economic development; and,
WHEREAS, the means and measures authorized by the Act and the assistance provided
therein with respect to financing are found to be in the public interest and serve a public purpose
of the state in promoting the welfare of the citizens of the state economically by the securing and
retaining of business enterprises and the resulting maintenance of a higher level of employment,
economic activity, and stability; and,
WHEREAS, in keeping with the purposes for which the legislature enacted the
-- Development Corporation Act of 1979 and the purposes for which the voters of the City of Paris
established the Paris Economic Development Corporation, it is deemed appropriate that an
incentive agreement be entered into with TClM Services, Inc.; and,
WHEREAS, the form of the Incentive Agreement, attached hereto as Exhibit A, should,
in all things, be approved, and the President, Michael R. Rhodes, should be authorized to execute
the same; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the form of the Incentive Agreement with TCIM Services, Inc., attached
hereto as Exhibit A, be, and the same is hereby, approved.
Section 3. That the President of the Board be, and he is hereby, authorized and directed
to execute, on behalf of the Paris Economic Development Corporation, the Incentive Agreement,
under the terms and conditions and in the form shown in Exhibit A, attached hereto.
-- Section 4. That this resolution shall be effective from and after its date of passage.
57O
PASSED AND ADOPTED this 28th day of June, 2000.
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
571
INCENTIVE AGREEMENT
STATE OF TEXAS ) -
) KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR )
THAT, the PARIS ECONOMIC DEVELOPMENT CORPORATION, acting by and
through its President, Michael R. Rhodes, duly authorized, hereinafter called PEDC, and TCIM
SERVICES, INC., acting by and through its Executive Vice-President, Lee Rattigan, duly
authorized, hereinafter called TCIM, do hereby contract and agree as follows:
WlTNESSETH:
WHEREAS, PEDC, an Economic Development Corporation organized ~mder the Texas
Development Corporation Act of 1979, Article 5190.6 of Vernon's Texas Civil Statutes, exists for
the purpose of encouraging and assisting qualified service and manufacturing entities in the creation
of jobs in the Paris, Texas, area; and,
WHEREAS, TCIM plans to operate a call center facility at Paris, Texas, hereinafter referred
to as the "Facility," and intends to employ a minimum of two hundred (200) new, permanent
employees over the next sixty (60) months, and to invest a minimum of one million six hundred fifty
thousand dollars ($1,650,000.00) on renovations of a building and furniture and equipment at the
Paris location; and,
WHEREAS, TCIM has requested that PEDC provide a grant for the creation of such new,
permanent jobs; and,
WHEREAS, the new jobs and investment by TCIM in Paris, Texas, will encourage economic
development in Paris, Texas, and PEDC is willing to grant two thousand five hundred dollars
($2,500.00) per full-time equivalency job, up to a maximum of five hundred thousand dollars
($500,000.00), pursuant to the terms and conditions of this Agreement for the creation of new jobs
and investment in equipment; and,
WHEREAS, the Board of Directors of PEDC has determined that it is in the best interest of
Paris, Texas, that financial incentives be offered to TCLM in order to encourage it to locate its
business in Paris, Texas, and to create jobs in Paris, Texas;
NOW, THEREFORE, for and in consideration of the covenants, promises, and conditions
hereinafter contained, PEDC and TCIM agree as follows:
A. TCIM.agrees to make improvements to the Facility in Paris, Texas, located at 3050
Clarksville Street, Paris, Texas, as follows: a minimum of $200,000.00 in tenant
EXHIBIT A
572
improvements to the Facility; an in-bound switch; a server; Dell PCs; and furniture.
: Such improvements will consist of furniture and equipment installed to operate a call
center. The improvements described herein will be at a total cost in excess of
$1,650,000.00, and shall be substantially completed prior to start-up.
TCIM agrees to locate and thereafter maintain its call-center operations at the Facility
for a term of not less than sixty (60) consecutive months following start-up of
operations in its Facility, with such start-up to be not later than December 31, 2000.
B. TCIM further agrees to create and maintain at least two hundred (200) new,
permanent jobs at the site of the improvements.
For purposes of this Agreement, a "full-time equivalent (FTE) employee" shall be one
or more persons employed by TCIM to perform a single job, either individually or
between them, at the Facility, which in the aggregate totals an average of thirty-five
(35) working hours during a calendar week, as determined over a one (1) year period,
measured from the anniversary date ofthe start-up of the Facility (hereinafter referred
to as the "anniversary").
It is further agreed that the new, permanent jobs described herein shall be created in
accordance with the following schedule:
First anniversary not less than 130 FTE jobs
Second anniversary not less than 170 FTE jobs
Third anniversary not less than 190 FTE jobs
Fourth anniversary not less than 200 FTE jobs
Each new job created must be a full-time equivalent job in Paris, Texas.
C. In consideration for opening and operating the Facility and for the creation and
maintenance of two hundred (200) full-time equivalent (FTE) employees by TCIM
as stated herein, PEDC agrees to pay to TCIM two thousand five hundred dollars
(52,500.00) per job for each FTE job created and maintained during the sixty (60)
month term of this Agreement, for a total not to exceed $500,000.00, as follows:
Amount To Be Paid
$200,000.00 At start-up
$125,000.00 One year anniversary
$100,000.00 Second anniversary
$ 50,000.00 Third anniversary
$ 25,000.00 Fourth anniversary
These payments shall be referred to herealter as the "Economic Incentive" or
"Incentives." TCIM recognizes and accepts its obligation hereunder that as a
573
condition 0fthe grant of this Economic Incentive by PEDC, it will ultimately employ .
a minimum o. ftwo hundred (200) full-time equivalent employees at the Facility. All
jobs must be performed by actual employees of TCIM at its Facility in order for
-- TCIM to receive credit therefor.
TCIM agrees that it will provide the PEDC with a copy of its Texas Workforee
Commission Employer's Quarterly Report within thirty (30) days of its filing of the
same with the Texas Workforce Commission to evidence the creation and continued
existence of such new, permanent jobs.
TCIM agrees that, for a period of sixty (60) months from the date of start-up of the
Facility, it will not reduce the'number of such new, permanent jobs so created in
accordance with the schedule stated above.
D. In addition to the reports required herein, TCIM agrees to provide PEDC a sworn
certificate by its corporate officer in charge of Personnel Records certifying the
number of full-time employees of TCIM at the Facility, in order to verify
employment requirements hereunder. Additionally, TCIM shall allow PEDC
reasonable access to its personnel records to audit information reported hereunder.
E. In the event that the improvements described in Paragraph A hereof are not timely
completed in accordance with this Agreement or the expenditure for the
improvements does not meet the amount required herein, or start-up of the Facility
does not occur within the time frame described herein, then PEDC shall have no
-- obligation to pay further incentives and TCIM shall return all incentives previously
paid to it within sixty (60) days of the date of notice of default.
F. In the event that the jobs created under this Agreement are not created and
maintained in accordance with this Agreement, then PEDC shall have no obligation
to pay further incentives and TCIM shall return any and all incentives paid to it for
the non-maintained jobs within sixty (60) days of the date of notice of default.
G. TCIM shall pay all applicable ad valorem taxes due and owing by it to the City of
Paris and all other taxing authorities having jurisdiction. In addition, TCIM will pay
all employment, income, franchise, and all other taxes, due and owing by it to all
local, Texas, and Federal entities. In the event TCIM should fail to pay any other
taxing entity and such taxes should become delinquent, PEDC will have no further
obligations under this Agreement and PEDC may immediately terminate this
Agreement.
H. TCIM hereby warrants and represents to PEDC the following:
1. TCIM is a corporation duly organized, validly existing, and in good standing
under the laws of the State of Delaware and has all corporate power and
authority to carry on its business as presently conducted in the State of Texas.
.574
TCIM further warrants and represents that if has the authority to enter into
and perform, and will perform, the terms of this Agreement.
2. TCIM has and will maintain all necessary rights, licenses, permits and
authority to caw/on its business where and as presently conducted.
3. TCIM is aware of the statutory limitations on this grant and the use of'funds
under Article 5190.6 of the Texas Revised Civil Statutes ("Statutory
Purposes"), and TCIM acknowledges that such funds herein granted shall be
utilized solely for purposes authorized under such state law and by the terms
&this Agreement and grant. In the event that an audit determines that such
funds were not used forStatutory Purposes, TCIM agrees to reimburse PEDC
for the sums of money spent for purposes not authorized by law.
4. There are no bankruptcy proceedings currently pending concerning TCIM,
nor are any such proceedings contemplated by TCIM as of the Effective Date
& this Agreement or within the 36-month period following sach date. In the
event that TCIM is the subject of voluntary or involuntary bankruptcy
proceedings during the tern hereof, the filing of same shall constitute an
immediate breach of this warranty, In such event, any remaining payments
due hereunder shall immediately cease and this agreement shall be of no
further force and effect.
5. The parties executing this Agreement on behalfofTCIM are duly authorized
by its Board of Directors to execute this Agreement on behalfofTCIM.
I. This Agreement sets forth the entire understanding between the parties, and any other
understandings or agreements shall be canceled and superseded by this Agreement
upon the date of execution hereof. None of the terms of this Agreement shall be
waived, discharged, altered or modified in any respect, except by an agreement in
writing signed by both parties and specifically referring to this Agreement. This
: Agreement is performable in Lamar County, Texas, and shall be governed by,
construed and enforced in accordance with the laws of the State of Texas. The
provisions of this Agreement shall apply to, bind and inure to the benefit of the PEDC,
TCIM, and their respective successors, and permitted assigns, if any.
J. The terms and conditions &this Agreement are binding upon the successors and
assigns of all parties hereto. Neither this Agreement, nor any interest therein, shall
be assigned by TCIM without the prior written consent o£PEDC.
K. Venue for any actions arising under this Agreement shall lie exclusively in the courts
of Lamar County, Texas, for any state court action, and in the U.S. District Court for
the Eastern District of'Texas for any Federal Court action.
57,5
L. All representations, warranties, covenants and agreements of the parties, as well as
any rights and benefits of the parties, pertaining to the transaction contemplated
hereby shall survive the original execution date ofthe Agreement.
M. Any notices required to be given hereunder shall be in writing and shall be deemed to
be duly given by mailing same postage prepaid, by certified mail, return receipt
requested, to the parties at the addresses shown opposite their signatures to this
Agreement. Such addresses maybe changed by a party only by giving written notice
of such change to all other parties in accordance with this paragraph.
EXECUTED on the 28th day of June, 2000.
PARIS ECONOMIC DEVELOPMENT
CORPORATION
By:
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
TCIM SERVICES, INC.
By:
Lee Rattigan, Executive Vice-President
ATTEST:
Secretary
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared MICHAEL R.
RHODES, President of Economic Development of the Paris Economic Development Corporation,
Paris, Texas, 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.
576
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 28th day of June, 2000.
Notary Public, State of Texas
STATE OF )
)
COUNTY OF )
BEFORE ME, the undersigned authority, on this day personally appeared LEE RATTIGAN,
Executive Vice-President of TCIM Services, Inc., 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
,2000. .'
Notary Public, State of Texas
577
President Rhodes asked if there was any other business and, there being none, he
declared the board meeting adjourned.
President Michael Rhodes
ATTEST:
Assistant City Clerk Barbara Denny