2002-10-09-Minutes MINUTES OF THE PARIS ECONOMIC DEVELOPMENT
CORPORATION REGULAR MEETING
October 9, 2002
The Paris Economic Development Corporation met in a regular session on
Wednesday,. October 9, 2002, 4:00 P. M. at Paris Junior College, Applied
Technology Building, Koom 1016, 2400 Clarksville Street. President Jay Guest
called the meeting to order with the following Directors present: Curtis Fendley,
Don Wall and Mike Dunn. Also present were ex-officio Board Members Bobby
Walters, Executive Director Gary Vest, City Attomey Larry W. Schenk and City
Clerk Mattie Cunningham.
President Guest called for the approval of the minutes from the meeting. A
motion was made by Director Fendley, seconded by Director Wall, for approval
of the minutes as presented. The motion carried unanimously.
President Guest advised the Board Members that Mr. Anderson was not able to
attend the meeting, but he had furnished a statement of the sales tax revenues for
fiscal year 2001-2002.
President Guest called for consideration, of and possible action on a proposal
from Cliff Parker for assistance from the PEDC in a manufacturing operation.
Mr. Parker came forward telling the Board that what they are looking to do is
actually manufacture jewelry. Mr. Parker explained what a lot of importers are
doing is the bead work and the crimp work including using a lot of different
stone in the jewelry industry. He advised that this a very simple form of
manufacturing and they do some of this type work in the store now without
stock for the general public. What he wants to do is hire two full time
employees who produce jewelry in the back of the store. The stock will go out
with a traveling sales representative Who will sell to other businesses in a four-
state area, Oklahoma, Arkansas, Louisiana and Texas. Mr. Parker said most of
this year, he has been wholesaling jewelry to other businesses, which he started
up basically for buying power. Mr. Parker told the Board that stonework has
become really popular.
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Mr, Parker advised the Board that the funding would be used to purchase
gemstones, sterling silver spacers and ail the materials that he uses to make and
assemble jewelry. Mr..Parker advised he has a cargo trailer that he is
customizing with shelving covering three wails with individual compartments
for the jewelry.
Mr. Parker said he has mass-produced jewelry that he buys and distributes, but
there is only a 25% to 30% mark up for this type jewelry. Mr. Parker explained
that if a person manufactures the jewelry, then he can keystone it, and it is a lot
more impressive. He said what this would allow them to do, eventually, is, if
they develop a large wholesale business, it will allow them to go ahead and get
the casting equipment and everything they need to actuaily produce things by
the hundreds and thousands when it comes to sterling silver charms and that
type of thing where you already have a market established for the product. Mr.
Parker said it was their plan to eventuaily have several full time jobs with
jewelers that can manufacture the product in Paris.
The Board discussed with Mr. Parker the process of keeping his retail operation
separate from his manufacturing business. Mr. Vest explained that there has
been Economic Development Corporations that have done retail projects, but the
intent of the legislation was never to do retail projects. He said since some
corporations have done that, our representative, Mark Homer, is going to
introduce legislation to remove the retail from the Economic Development
Corporations. He said that is why the Paris Economic Development Corporation
is being careful and making sure there is a separation and they follow the intent
of the law.
President Guest said the PEDC is going to have to come up with the verbiage
so that the PEDC stays consistent with the charter and with other people who
might want money in this community. This is something that Mr. Vest, City
Attorney Sehenk and the Board will have to work through.
Mr. Vest advised that he has talked with First Federal, who Mr. Parker does
business with, and First Federal has financed him in the retail sector. Mr. Vest
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said he had spoken with people at First Federal and they did not have a problem
with doing business with Mr. Parker, but he has over extended and they cannot,
under their guidelines, loan him any more money even though he is a good
customer. Mr. Vest advised that he asked First Federal if the PEDC gave a loan
guarantee so they could finance him to continue this operation. Mr. Vest said
all the PEDC would be doing is securing his note with First Federal so they will
make the Loan. First Federal came back and wanted an 100% guarantee. Mr.
Vest said in order for Mr. Parker to get started with this operation he would need
about $40,000.00.
President Guest said he had been told that the City of Paris has $200,000.00 in
a cash account that has never been lent to any enterprise like this. Mr. Vest
advised that he sent Mr. Parker to see Tommy Haynes with the City of Paris, and
he met with Bob Jones. Mr. Jones rejected his request for a loan.
President Guest said it his understanding that the money is going to be pulled
by the USDA if the City does not do something, because they have not made a
loan. Director Fendley asked why don't the PEDC administer that grant. Mr.
Vest advised that this grant money has been contracted out to Mr. Bob Jones,
and Mr. Jones administers the fund for the city. Mr. Vest said there are
restrictions on it. It requires a bank participation like Mr, Parker is wanting for
the $40,000.00. The bank would put up $20,000.00 and the loan fund would
have to put up $20,000.00.
After discussion, it was the consensus of the Board to invite Mr. Haynes to their
next meeting and ask him to explain the USDA Grant and see if there is a way
the PEDC could work with Mr. Jones in this effort.
Resolution No. 2002-006, supporting the Northeast Texas Regional Mobility
Council (NETMOB) developing State Highway 24 from a two-lane roadway to
a four-lane divided highway, thus closing the gap between Paris and Interstate
30 through Delta County, was presented.
A motion was made by Director Wall, seconded by Director Fendley, for
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approval of the resolution. The motion carried unanimously.
Mr. Vest explained that what they are asking for is support of NETMOB
because NETMOB is going before the Commission on October 31, 2002, and
they have asked for resolutions from the PEDC, the City of Paris, the Chamber
of Commerce, and Lamar County to show they have public support for the four-
laning of Highway 24. He said there is sixteen miles through Delta County that
is not four-lane. Mr. Vest told the Board that NETMOB is making an all out
effort to try to get funding. He advised that they have already received federal
funds from Max Sandlin designated toward the project, and he is continuing to
work trying to get additional federal funds. They are trying to get the State of
Texas to make a commitment to finish this project.
A motion was made by Director Wall, seconded by Director Fendley, for
approval of the resolution for the support of developing State Highway 24. The
motion carried unanimously.
Mr. Vest said if anyone could go to Austin in support of developing State
Highway 24, it would be a great help.
Mr. Wall advised that the Highway Department said this is their best shot in
getting the funding to complete this project. If NETMOB does not receive the
funding, it will be six years before they will get another shot at it. Mr. Wall said
they stand a really good chance in getting the Highway 24 funding. He said they
were asking for twenty-one million dollars.
Mr. Vest explained that any time one of these highway projects, the local group
has to buy the right-of-way or has to pay a part of the right-of-way. Delta
County is unable to come up with their share of the funding.
Mr. Wall stressed the need to have a large contingency in Austinand they count
heads in support of projects. They know how far you drive and they have to
have total community support from the four counties that are backing this
project.
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President. Guest called for the Director's report.
Mr. Vest said since the last meeting, there have been ten inquiries to the
advertisement program. Two proposals have been submitted for food
processing through the Texas Department of Economic Development.
Mr. Vest advised that Eric has submitted a proposal on the Oliver Rubber
building from a prospect that came from the Texas Department of Economic
Development.
Mr. Vest said on September 3, 2002, they had a rather large Fortune 500
Company looking at a site just north of Kimberly Clark. He said this project is
called Project Winner and it came through the Texas Department of Economic
Development, which is highly confidential. Mr. Vest advised that it is a
tremendous project and they would need a million square feet of building, and
it would create several hundred jobs. Mr. Vest said he was furnishing this
company with additional information. In the next several weeks, he is going to
have to put the PEDC's proposal in writing to them as for as incentives, and will
continue to pursue this project. Mr. Vest said he would keep the Board posted
on the progress of the project.
Mr. Vest advised that he met with Senator Ratliff on August 30, 2002 about
some of the legislation coming down, and he assured him that if Mark Homer
can get his legislation through the House, he will push it through the Senate.
Mr. Vest said he has been concerned about a lot of the bills that are being
proposed to do away with the Economic Development sales tax and Senator
Ratliff is going to really keep a watch on that.
Mr. Vest said he met with Ralph Bill and Bill Dickey about the medical
development north of Paris. Mr. Bill asked him about the PEDC doing the
infrastructure out there, and Mr. Vest said he told him the PEDC could not do
that and gave him the AG's opinion where Sweetwater, Texas was asked to do
that for a medical facility and the AG's said no, they could not do that.
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Mr. Vest Said the week of September 23 - 27, 2002, he and Eric attended the
annual Texas Economic Development Council meeting in San Antonio. Mr.
Vest said he participated in this by doing an hour and one-half presentation. Mr.
Vest advised that also that week, he had an opportunity to meet with the Texas
Commission on Environmental Quality, which they had formerly know as
TNRCC, and they have changed their name to the Texas Commission on
Environmental Quality (TCEQ). Mr. Vest said they have a new Commissioner,
Cathleen Wyatt, and he had a chance to meet with her on Friday. One of the
reasons that he went to this meeting was because they have a new Executive
Director. Mr. Vest advised that if the city gets this new industry, permitting is
going to be a big thing for them, and they will be down there and will be dealing
with TCEQ.
Mr. Vest mentioned the fact that when they move to the Depot, there is going
to be a need to extend the fiber optic from the Paris Police Department to the
Depot in order to run their computer systems. He said the Chamber of
Commerce does not have the resources to do that, which is approximately two
to three thousand dollars. After discussion, it was the consensus of the Board
to continue with the extension of the fiber optic and bring it back to the Board
for approval.
Mr. Vest advised the Board that the City of Paris received a TIFF Grant and
when the Chamber of Commerce is moved to the Depot, there are going to be
four computers available for public use. These computers can be used to pay
their water bills, the council agenda will be available, the web sites for the
Chamber of Commerce, City of Paris, PEDC, Paris Jr. College, and things of
that nature. Mr. Vest said' this is going to be handled by the TIFF Grant and all
they have to do is get the fiber optic to the Depot.
Mr. Vest passed out a brochure on Cox Field Airport.
Director Wall stated that now that he has been elected as the Chairman of the
Chamber of Commerce and the Chairman of the Chamber of Commerce is an
ex-offocio of this Board, can Mike Graxiola continue as an ex-officio member.
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City Attomey Schenk advised that he was not sure about this, but he would
check into this and report back to the Board, and pointed out that would make
the PEDC one member short.
There being no further business, the meeting was adjourned.
JAY GUEST, PRESIDENT
ATTEST:
MATTIE CUNNINGHAM, CITY CLERK