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02/15/2018 Minutes PARIS ECONOMIC DEVELOPMENT CORPORATION MONTHLY MEETING Community Room 1125 Bonham Street Paris, Texas 75460 Thursday, February 15, 2018 4:00 P.M. MINUTES Board Members Present: Staff Present: Richard Manning, Chairman Michael Paris, Executive Director Marion Hamill, Vice-Chairman (arrived 4:04 pm) Chris Stout, Economic Development Associate Tim Hernandez, Secretary/Treasurer Paula Brownfield, Administrative Assistant Derrick Hughes Ray Banks Ex-Officio Members Present: Guest(s) Present: John Godwin, City Manager (arrived 4:14 pm) Brittany Martin, McClanahan & Holmes Mary Madewell, The Paris News Legal Counsel: City Council Liaison: Stephanie Harris, City Attorney Paula Portugal Call to Order. Mr. Manning called the meeting of the Paris Economic Development Corporation to order at 4:00 p.m. on February 15, 2018. osed. Discuss and possibly approve Minutes of the January 23, 2018, Monthly Meeting. Mr. Manning asked if the Board Members had a chance to look at the minutes. The Board had no changes. Mr. Manning made a motion to approve the January 23, 2018, minutes. Mr. Hughes seconded the motion. Vote was 3-ayes, 0-nays and 1-abstention by Mr. Banks. Discuss and possibly approve January 2018 Financials. Mr. Hernandez went over the financials pointing out there were two pay periods in January and the Administrative costs were normal. The item listed under Associations for $500.00 is the yearly TEDC membership dues. In Marketing $3000.00 for TEAM TEXAS was our yearly marketing fee and $1000.00 for ONCOR-PLASTEC was our portion of booth space at the PLASTEC Conference. Mr. Banks inquired on the TEDC charge of $400.00 and Mr. Paris answered that it was for the TEDC Winter Conference in San Antonio. Mr. Paris said when American Spiralweld looked at two t95/ .ƚğƩķ aĻĻƷźƓŭ aźƓǒƷĻƭ CĻĬƩǒğƩǤ ЊЎͲ ЋЉЊБ tğŭĻ Ћ ƚŅ Ѝ properties, Oliver Rubber and Superior Switch, we realized the Phase I studies done in 2003 were not current. GHD Services completed a new Phase I study for $5800.00, a Phase II strategy for $1900.00 and the extra fees of $91.38 were to obtain documents. Berg-Oliver is for a wetlands study of the 140 acres. The rest of the items were normal expenses. Mr. Banks asked about the TD Ameritrade amount and it was concluded that it was a retirement expense. Mr. Banks made a motion to accept the financials as presented. Mr. Hughes seconded the motion. Vote was 5-ayes to 0-nays. Discuss and possibly approve the yearly Audit Report for the 2016-2017 year as presented by Brittany Martin of McClanahan and Holmes. Ms. Brittany Martin with McClanahan and Holmes presented the PEDC yearly audit. The audit was the Balance Sheet under Accrued Liabilities. Mr. Hernandez asked if the statement was converted from a cash basis to an accrual basis. Ms. Martin answered that it was. On the Income Statement most items were very consistent except for a difference in the Personnel and the Administration accounts is due to employees becoming permanent and not contract labor. Other Financing Sources was unique this past year with the return of land from Powder Innovations; and SuRRMA return of income from the Highway 24 project. Mr. Banks asked Mr. Paris when the final payment from SuRRMA would be received. Mr. Paris said he would check on it. Mr. Banks questioned item 4 - Retail and Office Structure on page 10 under Commitments. He asked if this was Paris Lakes and Mr. Paris affirmed it was. Mr. Banks stated that this commitment expires May 31, 2018, and if Paris Lakes did not meet the requirements by then we were not under any obligation to them going forward. Mr. Paris said it was his understanding and he would examine the documents. Mr. Manning asked about the Excess Expenditures on page 6 which says that for the year ended on September 20, 2017, our Personnel expenditures exceeded the budget by $6002.00. Ms. Martin said that page 12 shows the budgeted amounts and the actual amounts. Mr. Hamill made a motion to approve the 2016-2017 Audit Report. Mr. Hernandez seconded the motion. Vote was 5-ayes to 0-nays. Discuss the Mr. Banks asked Mr. Paris if he could give a name of one or more companies that have come to Paris to look at a site as a as a result of contact at the conferences that he attended. Mr. Paris said the first contact was Paul Ghany from Columbia. He met him at FABTECH with the Oncor group. Mr. company works with KIA and other car manufacturers doing after-market components. He belongs to SEMA and knows of Bodyguard. His company is looking at assembly of components not manufacturing. Mr. Ghany will be coming back at the end of March to talk to Bodyguard and looking at space for his company. The second contact came from Select USA, his name Shrinath Sundaram from India. He has close ties to the US Consulate and India Chamber of Commerce in Houston. A group met with him about a flight school at Cox Field and a medical device component that sends vital statistics to a doctor via satellite. He is looking for a place to manufacture the component. Mr. Paris stated these were the two primary businesses that visited Paris based on his travel. Mr. Hamill left at 4:30 p.m. Mr. Hernandez commented that the first trip listed was to Germany and represents over 31% of the total Marketing budget. Hannover Messe. Mr. Hernandez asked about the type of companies that go to Hannover Messe. Mr. Paris stated the European American Investment Council has given us leads for foreign companies ready to invest in the US. The EAIC came through the Longview EDC. We do not want other t95/ .ƚğƩķ aĻĻƷźƓŭ aźƓǒƷĻƭ CĻĬƩǒğƩǤ ЊЎͲ ЋЉЊБ tğŭĻ Ќ ƚŅ Ѝ communities to benefit from foreign investment without us taking advantage of this opportunity. Mr. Mr. Paris reminded everyone that even though the Hannover Messe conference is 30% of the Marketing budget we are not using the total amount that we could use. We have accumulated approximately $300,000 in marketing funds. Mr. Manning asked about the $8,000.00 registration expense and was told it included hotel and travel expense within Germany. Mr. Hughes stated that reminded the Board there were no guarantees on the number of prospects we receive at any conference. The Board asked Mr. Paris for more information at the next meeting. The staff met a couple of weeks ago with the subject being productivity. We plan to follow up leads with the Sales Funnel. J Skinner has met the first phase of their performance agreement. We reviewed the ADP report and the Workforce report and they have exceeded the 55 new employees by 12 to 70 new employees. J Skinner documented 203 full-time employees. In the next six months they will need to retain these jobs and meet their performance agreement before the $400,000 will be paid. lized their paperwork and a check for the forgivable loan is being processed. The promissory note is for $400,000. Potters Industries was required to maintain their workforce of 23 full-time employees and to add 10 extra full-time employees by December 31, 2017. We received documents from them showing a total of 43 full-time employees at the end of the year. The final payment of $8,000 is being processed for Potters. Paris Lakes contract is being reviewed in anticipation of the final date on the contract, May 31, 2018. We are asking for clear information on the guarantee of the loan for HWH. A letter asking for documentation of the loan was mailed to HWH. The ag company is being talked to about the rail spur we gave to them. We sent a letter asking that the rail spur be cleaned up. American Spiralweld application for the Texas Enterprise Fund has passed its due diligence through the Department of Economic Development and Tourism. It is now in front of the Governor, Lieutenant Governor and the Speaker of the House. The 30 day review process has started and a 14 day extension can be filed to complete the review. We are looking at Paris leadership traveling to Austin to support the application. If American Spiralweld chooses Paris, they will be building on the southern part of the Business Park. The PEDC will be doing Phase II cleanup on old Superior Switch and Oliver Rubber properties. Mr. Banks asked what the testing of the soil showed. Mr. Paris said the primary element is barium and our first goal will be to remove the barium around the rail spur. GHD advised us that it could take up to a year to clean up the property. Berg Oliver did the wetlands study and the wetland can be remediated very quickly. t95/ .ƚğƩķ aĻĻƷźƓŭ aźƓǒƷĻƭ CĻĬƩǒğƩǤ ЊЎͲ ЋЉЊБ tğŭĻ Ѝ ƚŅ Ѝ PLASTEC Conference was in Anaheim last week. 75 leads were created. Robotics is the biggest thing. Community visits were Paul Ghany and Shirith Sundaram. Our office wants to welcome visitors. We always want to invite to Paris. Convene into Executive Session: a) Section 551.087; Deliberation of Economic Development Negotiations to deliberate Commercial and Financial Information and Economic Incentives relating to the following: Commercial real-estate development. 1) Discuss Land Purchase 2) Project American SpiralWeld Chairman Manning convened the Board into Executive Session at 4:57 p.m. Reconvene into Open Session and possibly take action on item(s) discussed in Executive Session. Chairman Manning reconvened the Board into open session at 5:25 p.m. No items were acted on. Discuss Future Agenda Items. Mr. Paris asked about putting travel on the next agenda and if the Board wanted both a discussion and approval. Mr. Hernandez replied that he would like more discussion. Mr. Paris said he would put more detail into travel at the next meeting. Adjourn Mr. Banks made a motion to adjourn. Mr. Hughes seconded the motion. Vote was 4-ayes to 0-nays. The meeting was adjourned at 5:27 p.m. Respectfully submitted, Paula Brownfield Administrative Assistant Paris Economic Development Corporation