2001-02-14-Minutes 591
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION
REGULAR MEETING
FEBRUARY 14, 2001
The Paris Economic Development corporation met in regular session on Wednesday,
February 14, 2001, 4:00 P. M., at Heritage Hall, 1009 West Kaufman Street, Paris,
Texas. President Mike Rhodes called the meeting to order with the following
Directors present: Jay Guest, Melba Harris, and Don Wall. Also present were ex-
officio boardmembers Bobby Waiters, Terry Christian, Executive Director Gary
Vest, City Attorney Larry Schenk and City Clerk Mattie Cunningham.
President Rhodes announced that the boardmembers had been furnished minutes of
previous meetings 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. B oardmember Don Wall made a motion, seconded by Boardmember
Melba Harris, for approval of the minutes as presented. The motion carried
unanimously.
President Rhodes asked Gene Anderson, Director of Finance for the City of Paris, to
give the financial reports for the months of November and December 2000, and
January 2001. Mr. Anderson came forward presenting the financial reports and said
due to the length of the agenda, he would present the financial reports and if the
Board Members had questions, he would answer them at a later date. A motion was
made by Boardmember Don Wall, seconded by Boardmember Melba Harris,
approving the financial reports as presented. The motion carried unanimously.
President Rhodes asked Mr. Gary Vest to give the Director's Report. Mr. Vest
reported that he has received a letter from Dave Ford with Southwest Foundry
expressing his appreciation for the Paris Economic Development Corporation
considering in his request. Mr. Vest said they reported their year end, they had a good
month and things were looking very well.
Mr. Vest reported that since the beginning of January, they had 82 responses to their
ad campaign. He said he had a request for an existing building and presented the
Board with a copy of the e-mail he had received. He said, as you can see, they do not
want a response if we can not meet their basic criteria of good outflow and we get
eliminated a lot times from those things. Mr. Vest said Commerce built a spec
building of 50,000 square feet last year and they sold that building and the company
that purchased is in the process of building another spec building. He just wanted the
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Board to have this information so they are aware of how important it is to have a good
building to show. Mr. Vest said that they do have a good building to show, but
unfortunately it is not a showable building. Mr. Vest said they have a brochure being
prepared for the Oliver Rubber facility and it is at the printer at this time. It will have
a full color pictureof the plant. It will have a map of Texas behind the Eiffel Tower
with the red, white, and blue colors. Mr. Vest showed a diagram of the site plan that
will be shown on the brochure and it will show where the building is located on the
lot. Mr. Vest said they had a 28 acre site which has been changed to 24 acres because
they sold 4 acres to Flex-O-Lite. Mr. Vest advised the Board that this building has
been listed with Collier International out of Dallas and they set a price on it for
$430,000.00. Mr. Vest said that on January 23, 2001, they had the annual meeting
of the Northeast Texas Economic District and they also attended the Northeast
Texas Economic Round Table. Mr. Vest said they will be hosting that Northeast
Texas Economic Round Table next week, and invited the Board to attend the meeting.
Mr. Vest also reported that he attended the Legislative meeting in Austin on January
16th through the 19th. Mr. Vest advised that there are six bills proposed that will affect
the Economic Sales Tax. He said the Texas Economic Development Sales Taxes
Association took the position of opposing all six of those bills and followed that with
the bid sponsors and Legislatures they were opposed to the changes. Mr. Vest
explained that the Senator from El Paso is proposing these bills and the reason he has
done this is because El Paso cannot pass the sales tax because of their population.
Mr. Vest advised the Board that since the last meeting, Paris Packaging has received
a Skilled Development Grant in the amount of $289,000.00 for training for Paris
Packaging, which will be run and conducted by Paris Jr. College. Mr. Vest said the
Smart Job Program has been closed because of the administrative problems and now
it has been transferred to the Texas Work Force Commission, but it has been closed
and they have not been able to access it for the last few months.
Mr. Vest presented an ad that they have been running regarding electricity from
Florida Power and Light's, and on the back of the ad, it addresses the infrastructure.
Mr. Vest said they are sending this ad to the California area because this is a prime
market area.
Mr. Vest said it is time for the payment to Turner International and as soon as he
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receives their report, he will be making that payment, which will be sometime in
March.
Mr. Vest advised that the Restitution Center is a project that we are still moving
ahead, but it is up to the legislature right now and they are going to have to approve
of the physical mode to do the Restitution Center. He said the TDJ was going to ask
for 500 bids, but they may have upped it now.
President Rhodes asked W. E. Anderson, Director of Finance, to come forward and
present the Annual Audit Report for the Paris Economic Development Corporation
for the fiscal year ending September 30, 2000, which was prepared by McClanahan
& Holmes, Certified Public Accountants. Mr. Anderson came forward giving each
member an Audit Report and went over portions of the audit with the Board. Mr.
Anderson pointed out the General Purpose Financial Statement and read the final
paragraph, which states their opinion of the General Purpose Financial Statement
referred to as the Audit.
After discussion, a motion was made by Boardmember Jay Guest, seconded by
Boardmember Don Wall, approving the Annual Audit Report for the Paris Economic
Development Corporation for the fiscal year ending September 30, 2000 as presented.
The motion carried unanimously.
President Rhodes called for consideration of and action on a resolution approving and
authorizing the execution of an Incentive Agreement with Agpro, Inc.
Gary Vest introduced Donald Gribble, his wife and Linda Tolliver from Agpro. Mr.
Vest said that Agpro was in a mode where they expect some growth over the next
three years. Mr. Vest said what the incentive agreement does is call for expansion of
the fiscal plant and real and personal property in the amount of $250,000.00 or more.
He said we also agreed if they do this expansion ,we would pay them an incentive as
listed in our Flexible Incentive Plan which is $2,000.00 per job up to 20 jobs. He said
they would maintain it for the five year period of the agreement.
· Resolution No. 2001-001, approving the form of the Incentive Agreement with
Agpro, Inc. and authorizing and directing the President of the Board to execute on
behalf of the Paris Economic Development Corporation, the Incentive Agreement,
was presented by City Attorney Schenk. A motion was made by Boardmember Don
Wall, seconded by Boardmember Jay Guest, for approval of the resolution. The
motion carded unanimously.
594
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2001-001
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING AND
AUTHORIZING THE EXECUTION OF AN INCENTIVE AGREEMENT
WITH AGPRO, 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 Agpro 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 Agpro, Inc., attached hereto as
Exhibit A, be, and the same is hereby, approved.
Section 3. Thai the President of 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.
595
PASSED AND ADOPTED this 14th day of February, 2001.
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
596
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 AGPRO, INC.,
acting by and through its Owner and Member of the Board of Directors, Donald Gribble, duly
authorized, hereinafter called AGPRO, do hereby contract and agree as follows:
1. AGPRO agrees to expand its production floor area, construct an inventory storage
facility, and procure new equipment to facilitate this expansion at the facilities
located on the property described on Exhibit A, attached hereto, and guarantees to
maintain the same for not less than five (5) years from the date of this agreement.
AGPRO further agrees to maintain a workforce of at least sixteen (16) persons paid
at a rate of at least $6.00 per hour, or more, with benefits, during said five (5) year
period.
2. The improvements and procurements described in Paragraph 1 hereof will be at a
cost in excess of $250,000.00, and shall be substantially completed over a three (3)
year period from the date of this agreement; provided, that AGPRO shall have such
additional time to complete the IMPROVEMENTS as may be required in the event
of "force majeure" if AGPRO 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 AGPRO 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 AGPRO, rites, explosions, accidents, floods, and labor disputes or
strikes.
3. In accordance with established policy, if any property wherein the business activity
is located for which incentives are given is not located within the corporate limits of
the City of Paris, then AGPRO must petition the City of Paris for annexation.
Accordingly, AGPRO agrees that, for and in consideration of the incentive payments
made by PEDC, if any of the property described on Exhibit A is not located within
the corporate limits of the City of Paris, then AGPRO will petition the City of Paris
for annexation within ninety (90) days of the date of this Agreement, or within ninety
(90) days of when the property is identified as outside the corporate limits, whichever
date is later.
EXHIBIT A
597
4. In return for the consideration described in Paragraphs 1, 2, and 3 hereof, PEDC
agrees to provide Two Thousand and no/100 Dollars ($2,000.00) for each new,
permanent, full-time (or equivalent) job created as a result of the expansion in excess
of the sixteen (16) jobs already in existence at the time negotiations first began, not
to exceed twenty (20) additional jobs in excess of the initial sixteen (16) provided
herein, for a total incentive not to exceed Forty thousand and no/100 dollari
($40,000.00). All jobs created to receive the PEDC incentive shall be located at the
AGPRO facility at F.M. 1508 in Paris, Texas. Such new, permanent jobs shall be
created not later than November 3, 2003, and must be at the AGPRO facilities at
F.M. 1508 in Paris, Texas for a period of five (5).years from the date of this
agreement. For purposes of this agreement, a full-time job shall be one in which the
employee works a minimum of forty (40) hours in a seven (7) day work week, fifty-
two (52) weeks per year, less holidays, sick leave, and vacation.
Incentive payments for such new, permanent jobs shall be made upon the
presentation by AGPRO to the PEDC of its Texas Workforce Commission
Employer's Quarterly Reports. These reports must be presented to the PEDC within
thirty (30) days of the day AGPRO begins construction, and these reports shall begin
with the sixteen (16) jobs as mentioned above and continue up to the date
construction began. Thereafter, AGPRO shall 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 jobs and to evidence additional jobs
created for additional incentive payments from the PEDC.
PEDC agrees to pay the incentive payments within sixty (60) days of receipt of
copies of the Texas Workforce Commission Employer's Quarterly Report.
5. AGPRO agrees that the PEDC, its agents and employees, shall have the reasonable
right of access to records concerning AGPRO's investment in the improvements for
the purpose of conducting an audit of the project improvements and project costs.
Any such audit shall be made only after giving AGPRO notice at least fourteen (14)
days in advance and will be conducted in such a manner as to not unreasonably
interfere with the operation of the facility. Upon request, AGPRO will provide the
PEDC with a detailed Asset Report with an itemized list of assets placed into service
from the date of execution of this Agreement to February 13, 2004. The Asset
Report will provide the date on which the asset was capitalized, the acquisition
amount, and the accumulated depreciation amount. At the PEDC' s request, AGPRO
will provide actual invoices to support the amounts shown on the Asset Report.
6. AGPRO further agrees that the PEDC, its agents and employees, shall have
reasonable fight of access to the property to inspect the improvements in order to
insure that the construction of the improvements are in accordance with this
Agreement and all applicable state and local laws and regulations or valid waiver
thereof. After completion of the improvements, the PEDC shall have the continuing
598
right to inspect the property to insure that it is thereafter maintained and operated in
accordance with this agreement during the term of the Agreement, and AGPRO shall
provide evidence as to the creation of any new, permanent jobs described in this
Agreement. All inspections will be made only after giving AGPRO notice-at least
seventy-two (72) hours in advance, and such inspections shall be conducted in such
a manner so as not to interfere with the operation of the facility. Representatives of
the PEDC inspecting the property and improvements shall be accompanied by one
(1) or more representatives of AGPRO and shall sign an agreement promising to
maintain the confidentiality of any information they obtain in connection therewith
except for the purposes of verifying or enforcing compliance with this Agreement.
Said representative shall also be required to observe any facility rule and regulation
applicable to the property. Nothing herein shall be construed as limiting the PEDC's
ability to perform inspections or to enter the Property the subject of this Agreement.
7. 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 AGPRO shall return all incentives paid to it
within one hundred twenty (120) days of the date of notice of default.
8. In the event that the jobs created under this Agreement are not maintained in
accordance with this Agreement for the defined five (5) year period, then AGPRO
shall return any and all incentives paid to it for the non-maintained jobs within one
hundred twenty (120) days of the date of notice of default.
9. In the event that AGPRO fails to petition for annexation as provided herein, this
Agreement shall be canceled immediately.
10. In the event that AGPRO fails to voluntarily return any and all incentives paid to it
as required under paragraph 7, 8, or 9 of this agreement, and the PEDC is compelled
to enforce such requirements by filing suit or seeking other legal remedies, AGPRO
shall, upon a finding of default and obligation to pay, pay all costs incurred by the
PEDC in such collection effort, including court costs and attorneys fees.
EXECUTED on the 14th day of February, 2001.
PARIS ECONOMIC DEVELOPMENT
CORPORATION
By:
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
599
AGPRO, INC.
By:
· Rick Petty, Vice President
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 14th day of February, 2001.
Notary Public, State of Texas
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared RICK PETTY,
Vice President of Agpro, 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 February, 2001.
Notary Public, State of Texas
600
FIELD NOTES .-
Situated about 5½ miles South 82 D .
East of the City of Paris, County of Lamar,
and State of Texas, a part of the William
Scott Survey #856, and being a part of a
1552.97 acre tract of land conveyed the City
Map of Paris by deed recorded in Vol. 208, Page
287, of the Deed Records of said County and
State.
Beginning at a stake for corner in the
East Boundary Line of Farm Road 1508 at the
present Northwest corner of said City of
Paris tract of land.
Thence East a distance of 437 ft.. to
· a stake for corner;
Thence South a distance of 1025 ft. to
a stake for corner;
Thence West a distance of 400 ff. to a
stake for corner;
Thence along the East Boundary Line of
Farm Road 1508 as follows: North a distance
of 115 ft. to a concrete marker; Northerly
around a curve to the left a distance of
18.3 ft.; North 7 Deg. West a distance of
43 ft.; Northerly around a curve to the right
a distance of 227 ft.; North a distance'o
459 ft. to the place .of beginning and con-
taining 10 acres of .land.
SCALE :. 1"= 2OO'
I, W. R. Abbott, Registered Public Surveyor of Texas, No. 1443, certify
that the above depicted and described tract of land was taken from an actual
survey made by me on the ground on the 21st day of August, 1972.
'W. R. Abbott, R.P.S. No. 1443
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, a Notary Public in and for said
County and State, on this day personally appeared W. R. Abbott, 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 purpose and considera-
ion therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 22nd day of August, 1972
601
DESCRIPTION OF PROPERTY
The subject property is 10 acres of land and all improvements
thereon known as Agpro, Inc. on Airport Road (FM 1508),
approximately 5.5 miles southeast of the city of Paris, Lamar
County, Texas.
LEGAL DESCRIPTION
Situated about 5.5 miles South 82 degees East of the City of
Paris, County of Lamar, and State of Texas, a part of the
William Scott Survey #856, and being a part of a 1552.97 acre
tract of land conveyed the city of Paris by deed recorded in
Vol. 208, Page 287, of the Deed Records of said county and
State.
BEGINNING at a stake for corner in the East Boundary Line of
Farm Road 1508 at the present Northwest corner of said city
of Paris tract of land;
THENCE East a distance of 437 feet to a stake for corner;
THENCE South a distance of 1025 feet to a stake for corner;
THENCE West a distance of 400 feet to a stake for corner;
THENCE along the East Boundary Line of Farm Road 1508 as
follows: North a distance of 115 feet to a concrete marker;
.Northerly around a curve to the left a distance of 183.feet;
North 7 degrees West a distance of 43 feet; Northerly around
a curve to the right a distance of 227 feet; North a distance
of 459 feet to the place of beginning and containing 10 acres
of land.
Being described in accordance with an actual survey made on
the ground by W.R. Abbott, Registered Public Surveyor of
Texas, No. 1443, on the 21st day of August 1972.
602
President Rhodes called for consideration of and action on a resolution regarding the
breach of contract by Exide.
Mr. Vest explained that the incentive agreement that the Paris Economic
Development Corporation had with Exide required that they stay in operation in the
City of Paris for five years. He said they operated for three years and vacated the
premises in October of 2000, so they are in violation of the incentive agreement. Mr.
Vest further explained that the Paris Economic Development Corporation gave them
$20,000.00 for improvements to the facility. Mr. Vest advised that all of the
improvements stayed with the facility, but the agreement called for them to operate
at least five years. Mr. Vest said Exide is a solid corporation and he feels they will
try to stay with the agreement.
Resolution No. 2001-002, resolving that Exide Corporation has breached the
Incentive Agreement dated October 2, 1997 with the Paris Economic Development
Corporation, and the Board of Directors of the Paris Economic Development
Corporation does hereby request the City Attorney of the City of Paris to take any and
all necessary and appropriate action against Exide Corporation for it breach of
contract under the Incentive Agreement dated October 2, 1997, was presented. A
motion was made by Boardmember Melba Harris, seconded by Boardmember Jay
Guest, for approval of the resolution. The motion carried unanimously.
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2001-002
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION DECLARING EXIDE
CORPORATION IN BREACH OF THAT ECONOMIC INCENTIVE
AGREEMENT BETWEEN THE PARIS ECONOMIC DEVELOPMENT
CORPORATION AND EXIDE CORPORATION; REQUESTING THE CITY
ATTORNEY TAKE ACTION WITH REGARD TO THE BREACH OF SAID
CONTRACT BY EXIDE CORPORATION; 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
govemed 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, the PEDC did heretofore, on the 2nd day of October,
1997, by and through its Director of Economic Development, Gary Vest, enter into an Incentive
Agreement with Exide Corporation for the establishment of a warehouse operation in Paris, Texas,
and the maintenance of a workforce of at least twenty (20) persons for a period of at least five (5)
years, in consideration of the PEDC providing $20,000.00 for facility improvements; and,
WHEREAS, it has come to the attention of the PEDC that Exide Corporation did,
October 1, 2000, cease operations in Paris, Texas, and vacate its facility at 1221 Church Street, and
it is now in default and breach of the terms of the aforesaid Incentive Agreement for failure to
maintain a workforce of at least twenty (20) persons for a period of at least five (5) years, and on
'other bases as the City Attorney shall determine; and,
WHEREAS, the Board of Directors of the Paris Economic Development Corporation deems
it appropriate to request the City Attorney to take necessary and appropriate action against Exide
Corporation for said breach; NOW, THEREFORE,
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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 Exide Corporation has breached that Incentive Agreement dated October
2, 1997, with the Paris Economic Development Corporation.
Section 3. That the Board of Directors of the Paris Economic Development Corporation does
hereby request the. City Attorney of the City of Paris to take any and all necessary and appropriate
action against Exide Corporation for its breach of contract under the Incentive Agreement dated
October 2, 1997.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 14th day of February, 2001.
Michael R. Rhodes, President
ATTEST:
Melba Harris, Secretary-Treasurer
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
605
President Rhodes announced that the Board would move to Agenda Item No. 8,
consideration of and action on a recommendation to the City Council of the City of
Paris on the tax abatement application from Sesaco, Inc.
Mr. Vest stated that the reason this item was placed on the agenda is because he and
City Attorney Schenk has been working on a new set of guidelines and criteria for
tax abatements for the City of Paris. He said in the new guidelines and criteria it
specifies that the City Council will look to the Paris Economic Development
Corporation's Board for recommendations on all tax abatements. Mr. Vest advised
that this Board will need to make a recommendation to approve or not to approve on
this tax abatement application from Sesaco, Inc. He advised that City Attorney
Schenk had hoped to present the new guidelines and criteria this month to the City
Council, but he has a heavy load this month, and he will probably present it to the
City Council in March. Mr. Vest stated that all future tax abatements will come
before this Board for recommendation to approve or not to approve the requested tax
abatements. Mr. Vest said on the new tax abatement guidelines and criteria in on a
floating scale, and explained that the greater investment in real and personal property,
the greater number of employment, and the dollars in pay rate. He said the greater
that a company qualifies in each one of those, the greater the tax abatement benefits
will be to that company. Mr. Vest also advised that there will be a maximum for the
minimum limits where they must at least make a certain investment service
performance to get the tax abatement, and then, you have to have maximum where
you are above that limit, then the contract is negotiated independently. He said that
most of the contracts will call for a few years of 100% abatement with a phase in with
the percentage phase in each year after that, until it is placed on the tax roll. Mr. Vest
advised that if they exceed the scale that is in the guidelines and criteria, the contract
will be negotiated independently.
Mr. Vest advised that on the Sesaco tax abatement, they expect to spend between
eight hundred thousand and 1.1 million on their plant. Mr. Vest said under this
abatement there are no new jobs involved and the situation is job retention. Mr.
Vest said he has met with the owners of Sesaco and Glenn Smith and he has been
working with them for about a year. They have been in Paris for a long time and have
had control of this plant for several years and they have reached a crossroad where
they either need to expand the business or close the business. Mr. Vest said they did
decide to go ahead and make the expansion and it is going to cost them a lot. Mr.
Vest said in August of 2000, they were awarded a patent on sesame seed and that
patent is where they can harvest the seed mechanically. Mr. Vest said it was his
recommendation that the Paris Economic Development corporation forward this to
the City Council, asking the city to give them the tax abatement. He felt that they do
qualify for the tax abatement whether it is under current guidelines and criteria or
under the new guidelines criteria.
After discussion, President Rhodes announced that the Board would return to Agenda
Item No. 7C, and called for consideration of and action on a resolution approving
participation in the Northeast Texas Economic Development District Revolving Loan
606
Fund and the Chapman Revolving Loan Bund in the amount of $125,000.00 for use
by Sesaco, Inc.
After further discussion, a motion was made by Boardmember Melba Harris,
seconded by Boardmember Jay Guest, to table action on this resolution. The motion
carded unanimously.
A motion was made by Boardmember Melba Harris, seconded by Boardmember Jay
Guest, to table action on a recommendation to the City Council of the City of Paris
for a tax abatement application from Sesaco, Inc.
There being no further business, a motion was made by Boardmember Melba Harris,
seconded by Boardmember Don Wall, to adjourn the meeting. The motion carded
unanimously.
MICHAEL RHODES, PRESIDENT
ATTEST:
MATTIE CUNNINGHAM, CITY CLERK