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06 - Boards & Commissions - MinutesItem No. 6 PARIS ECONOMIC DEVELOPMENT CORPORATION MONTHLY MEETING Paris City Council Chambers 107 East Kaufman St. Paris, Texas 75460 Tuesda f Se )tember 18 2018 4:00 O'CLOCK P.M. MINUTES Board Members Present: Staff Present: Richard Manning, Chairman Michael Paris, Executive Director Shay Bills, Vice -Chairman Chris Stout, Economic Development Associate Tim Hernandez, Secretary/Treasurer Paula Brownfield, Administrative Assistant Marion Hamill Ex -Officio Members Present: Guest(s) Present: John Godwin, City Manager (Arrived at 4:20 p.m.) Terry Neeld, Lamar National Bank Pam Anglin, President PJC Mary Madewell, The Paris News Linda Knox, City Council Chad Lindsey, 1' Street Studios Paul Allen, Lamar County Chamber of Commerce Bobby Walters, Citizen Legal Counsel: Stephanie Harris, City Attorney Call to Order. City Council Liaison: Paula Portugal Billy Trenado Mr. Manning called the meeting of the Paris Economic Development Corporation to order at 4:00 p.m. on September 18, 2018. Citizens' In Lut. Mr. Manning invited those present to speak during Citizens' Input. No one came forward and the Citizens' Input was closed. Discuss and possibly nthly Meeting and the Se tember 11 2018 S ecial Meetin . Mr. Manning asked if there were any changes to the minutes. No changes were submitted by the Board. Mr. Hamill made a motion to approve the minutes. Ms. Bills seconded the motion. Vote was 4 - ayes to 0 -nays. PEDC Board Meeting Minutes September 18, 2018 Page 2 of 4 Discuss andossibly a) rove Au ° ust 2018 Financials. Mr. Hernandez said the first item shown in the August disbursements was $400,000.00 to J. Skinner. Mr. Paris commented that J. Skinner has fulfilled and exceeded their agreement. Mr. Hernandez stated the next item was the bond payment. This was the last payment on the ten-year bond. Under the Personnel Expenses the amount was higher because there were three pay periods in August. The Administration Expenses were normal for the month. Mr. Paris pointed out that Marketing and Promotion shows GHD Services was for Phase I environmental on our properties and Hayter Engineering was additional surveying for our prospect American SpiralWeld, Mr. Hernandez stated that The Results Company was reimbursed $50,000.00 for the completion of job training. Under the Equipment expense the amount $6,895.00 was the purchase of a new copier. Ms. Bills made a motion to approve the August financials. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 -nays. Discuss and ossibly avorove a Master Economic Development Agreement with American S airalWeld Pipe Com an � LLC relatingto an incentive packa a offered to that company. Mr. Paris said the Master Agreement has components for the Incentive Agreement. There was a change to the incentives from 35 hours FTE to 32 hours FTE per week. This was at American SpiralWeld's request because of the fluctuation in the market. Ms. Harris added that American will still pay benefits on a 32 hour workweek schedule. Ms. Harris stated that American made an addition of a sentence to the Indemnity paragraph at the end of the agreement. She said it was legalese and she did not have a problem with the sentence. The tax abatement agreement will be changing to account for construction taking place over more than a one year period. Mr. Paris let the Board know American would use temp -to -hire staffing for the first 90 days before permanent hiring. The temp positions will not count toward the incentive agreement. Mr. Paris asked the Board to look on page two of the agreement where the components that make up the agreement are listed. The first component is the land transfer: Phase I is the Greenfield, Phase II is the Brownfield, and Phase III is the Wetlands. Also included in the first component of the agreement, are the cash incentives of $1.5 million after the first fourteen days of construction and the cash -for -jobs incentive of up to $1 million based on job creation. The second component is a Chapter 380 agreement between the City and American granting the 9 acres with the SuddenLink tower on it. Since the land is City owned, a Chapter 380 is needed for the land transfer. The third component is the Tax Abatement agreement between the City and American. Ms. Harris told the Board that the documents are structured for ease of use. Mr. Manning praised the City Attorney, Ms. Harris, for all the work she has put into the agreements. Mr. Paris advised the Board that their approval of the Master Agreement is needed. After approval, the Master Agreement will be taken to City Council for their approval. Mr. Manning made a motion that the PEDC approve a Master Economic Development Agreement with American SpiralWeld Company, LLC, and authorize the Chairman to execute such an agreement in substantial conformance to what we may have presented in our agenda packets subject to a change. The definition of FTE positions from 35 to 32 hours per week subject to the approval of City Council. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 - nays. Discuss and possibly aimrove terms for the Loan with Local Banks. $1 million for American SpiralWeld and $1.5 million for land aeguisition and develo ment. it '(.uuu.Tectii011 illlile am oiii;int or�� land aciiluisitiouus and d velllropuuui�ui.euuii, is $1 1. iu:niilio,n no $1 ,,, a indilll.ion.) Mr. Paris stated there was a discussion about using the local banks to provide a loan arrangement of the upfront monies for American SpiralWeld. As the purchase of the land on the South Loop for a new PEDC Board Meeting Minutes September 18, 2018 Page 3 of 4 business park took shape, it was decided to incorporate this purchase into the loan from the Local Banks. Mr. Terry Neeld, Executive Vice -President of Lamar National Bank came to the Board with the details of the loan. Mr. Neeld stated the financing would be split between five banks with each bank taking a share of the $2,100,000.00. The first part would be done as a construction loan for six to nine months which gives the PEDC time to have the construction completed. At the end of nine months the loan would be rolled into a permanent loan with a fifteen year term. The interest rate on the loan would start at 3.75% fixed for five years. Starting in the sixth year the interest would be Wall Street Journal Prime Rate minus 1.5%. This rate would be adjusted yearly with a 2% annual cap on the interest rate and a 5% cap for the life of the loan. The interest rate would never be more than 8.75% in the life of the loan. Mr. Hamill made a motion to approve giving the authority to move forward with the loan arrangement as described. Mr. Hernandez seconded the motion. Vote was 4 -ayes to 0 -nays. Discuss and possibly approve purchase of South Looe ra erty for New Business Park. Mr. Paris told the Board we made a mistake putting this on the agenda. This item was approved at the last monthly meeting. Discussion and possibly a W,,)rove Bud yet Amendments for the 2017-2018 Bud yet. Mr. Hernandez spoke about the budget amendments for 2017-2018. The Personnel expenses are increasing by $7,000.00 mostly for the increase of Insurance Benefits. Our insurance rerate occurs each year with the March payment. Mr. Paris pointed out the $7,000.00 we put into the Personnel budget was taken out of the Administration budget. Mr. Hernandez told the Board that our total operating expenses did not change. Mr. Paris went on to the Job Training expenses saying that the budget will be increased because of the $25,000.00 High Demand Job Training Grant we paid. Direct Business Incentives show: Paris Lakes did not receive a $250,000.00 incentive, BodyGuard was paid last September before the new budget started, Potters was in the budget and was paid out, and Daisy Dairy did not qualify for the $94,900.00. We increased the budget because of the incentives offered to Campbell's and J. Skinner. The Debt Service did not have any changes and this was the last year to pay on the Bond. Under Capital Expenses we show the purchase of Superior Switch and the funds used to prepare for American SpiralWeld. The budget increase for the year is $752,277.97 making the Total Amended Budget $1,953,953.97. Mr. Hernandez made a motion to approve the 2017-2018 budget amendments. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 -nays. Executive Director's Monthly Re )ort. • The TEDC Fall Conference is coming up. • The TEAM Texas Road Show was in Atlanta. We participated in thirteen meetings, made twenty contacts with decision makers, and have followed up with two of the contacts. • We will be participating with Oncor in FABTECH which is taking place in Atlanta this November. • The land purchase for a new business park will be presented to City Council on Monday night. • Dr. Hashmi made the recommendation that we visit with PepsiCo executives in New York. An appointment has been set for November. PEDC Board Meeting Minutes September 18, 2018 Page 4 of 4 Discuss Future Agenda Items. Ms. Bills asked for the next agenda to include revisiting the time of day the Board meetings are held. Adjourn Mr. Manning made a motion to adjourn. W. Hamill seconded the motion. Vote was 4 -ayes to 0 -nays. The meeting was adjourned at 4:41 p.m. Respectfully submitted, Paula Brownfield Administrative Assistant Paris Economic Development Corporation Paris Public Library Advisory Board Meeting Minutes September 19, 2018 Opening: The regular meeting of the Paris Public Library Advisory Board was called to order at 4:02 p.m. by Connie Dodd, acting Chair. Present: Board members present were Connie Dodd, Christina Schock, Ashley Lassiter, Marilyn Threadgill, Rebecca Umphrey, Denise Kornegay and Director Priscilla McAnally. Absent was Carol James. Approval of Minutes: The minutes of the August 15, 2018 meeting were unanimously approved with one correction, that being the correction of Marilyn's name spelling. New Business: Staff members Ron Hervey and Rebecca Taylor gave presentations on their duties and contributions at the library. Director discussed upcoming Halloween program by Bernadette Nason. Cost is $590 and funding is as follows: $295 by Texas Commission on the Arts, and $295 requested from the library expendable trust. Motion to fund the $295 from the expendable trust made by Denise, 2"a by Marilyn, motion unanimously passed. Ashley presented an idea to construct interactive reading stations along the Trail de Paris. • Old Business: The debt from roof replacement will be paid off using surplus funds in the library's budget for FY 2017- 2018. • Presentations: • Budget Report was presented with no comments. • Statistical Report was presented with no comments. • Friends of the Library: Children's department pajama party with Santa scheduled for December 6. • Director's Remarks: Director has requested 50 new chairs for the Gallery. Old chairs are stained and damaged. Director will begin to research options and cost. The next meeting will be October 17. Adjournment: Meeting was adjourned at 4:46 p.m. Submitted by Ashley Lassiter, Secretary MINUTES REGULAR MEETING R.._...ADVISORY BO AXRPO.-.-�............. TARD COX FIELD AIIxPOR" " 1 7 LLIER DRIVE PARIS TEXAS THURSDAY. SEPTEMBER 20.2018 ..._. 5:30 O'CLOCK P.M.mm 1. The Airport Advisory Board meeting was called to order by Chairman Ray Ball at S: 32 p. m. The following members were present: Anna Spencer, Nathan Bell, Ray Ball and Jimmy Noble. Also present: John Godwin, City Manager, Jerry Richey, Airport Manager; Paula Portugal, City Council Liaison and Triniti Frazier, Community Development Coordinator Absent members: David Taylor. 2. Approval of minutes from previous meeting o fAugust 16, 2018. Motion was made by Nathan Bell and seconded by Jimmy Noble. Motion carried 4-0. 3. Discussion regarding delinquent hangar rentals. Triniti Frazier, City staff reported the following delinquent hangar rentals in the 60-90 day range are: Jimmy Smyers for $9.00 and Cody Stephens for $135.00. Ray Ball requested a delinquent notice be mailed to them. Nathan Bell asked for clarification on the account aging report because it appears to be a negative. Jerry Richey states some accounts are pre -paid. City staff will. confirm with the Finance Office if the report is indicating negative or a credit for those that pre -paid. 4. Discussion regarding the eviction process and implementation of an inflation clause in the old hangar lease agreement. Ray Ball referred to the document in the packet showing the hangar rental fees, stating some of these are old hangar leases, some are current, some are not, also some have not been adjusted in years on the rates, some of them have a clause on the rates that can be adjusted every year but we have never done it. Ball opened the discussion on how to catch this up to where it needs to be and get people on board with their current lease. Anna Spencer states those that have it in their lease for an adjustment, she thinks we should do that. Ball asked if it has been five or six years and it hasn't been adjusted do we adjust it to where it should be or start with adjustments now and go forward. John Godwin states he wouldn't want them to pay back money but he would not mind bringing the rate up to where it should be. Ball states the ground leases shown in red he believes are expired and does not have a lease at all. Godwin states we have a standard rate that was adopted so once your lease expires you would then go to that standard rate according to the rule adopted a year and a half ago they're supposed to start using the new lease. Godwin states we need to create a calendar so we know when to contact them about an expiring lease. Jerry Richey states all of the old Ieases that go back 25-30 years were privately built and are on a totally different lease than we have now and probably had no ground lease. Bell requested that City staff bring a detail status of each lease to the board. Roy Allison asked what would be the difference, are they going to go up 2% or 10%, what kind of sticker shock are we looking to put on people and what are the comps to other airports like Bonham and several others similar to Cox. Ball states he can't answer that right now but he does know that Bonham averages over $200 per hangar. Godwin states over time you should have one ground lease hangar and one airport lease hangar. The plan is to phase out those old leases when they expire. Ball states we also need to maintain control of the exchange of hangars fi-om under the table when we don't know who is doing what. S. Discuss and take action on a letter a f intent for the no match grant funding. Nathan Bell states what was explored is that we are not qualified as a Microplex and we're not just automatically qualified we have to have justification. He believes the City should move forward with trying to get a grant to get a taxiway built wherever we can justify is easiest and best. Further stating, we need to allow some of these people to start putting hangars in here on a ground lease basis to get airplanes coming in and out, fuel flowing and things of that nature. He states that is the first thing you can do for economic development. Bell states this airport is real nice but does not have the things to normally attract pilots in here. Ray Ball states he will entertain a motion that indicates a letter be sent to that organization with the request for funding for that extension of taxiway west. Motion was made by Nathan Bell, and seconded by Anna Spencer to immediately put together a request and apply for funding from the no match grant for taxiways due to the demand for hangars that we can't get access to without the taxiway. Motion carried 4-0. 6. Discussion regarding Colin Marino new private hangar construction project. John Godwin states this is a project that we're trying to move along and was actually put on the City Council agenda last week. Council approved executing the lease agreement pending the Airport board approval of the location Colin Marino has asked for. Motion was made by Nathan Bell to approve the location and seconded by Jimmy Noble. Motion carried 4-0. 7. Discussion regarding taxiway extension west from current position to the fence line. John Godwin states at some point we want to run the taxiway all the way to the West fence so there is ingress/egress access for security and public safety. It is already in the Master Plan. 8. Discussion regarding movement of current fences to square zip the hangar construction area. Godwin states he will run Items 8 and 9 together for this discussion. Godwin states we have talked about running a new taxiway parallel to the existing taxiway which opens it up for people to build a row of privately built hangars. It is currently a little tight because of the placement of the fence so we talked about moving the fence back 27 feet and making it straight. Godwin read a letter aloud submitted by board member David Taylor in his absence. 9. Review and take action on the Airport Master Plan, including possible amendments and future capital projects. Motion was made by Ray Ball to arrange the fences further to the west as necessary for the project discussed and also East and West to the road giving it a square lot as well as moving dirt over to fill the ponds and level out all of that area, seconded by Jimmy Noble. Motion carried 4-0.. Jimmy Noble excused himself from the meeting. 10. Request items for future agendas. Items requested are detailed status of leases, discuss the feasibility of building private hangars and discuss aviation class with Paris Junior College. 11. Adjournment. A motion to adjourn was made by Ray Ball and seconded by Anna Spencer to adjourn at 6:40p.m. APPROVED THIS 18`h DAY OF OCTOBER, "')18. ,d t.'bairmaii MINUTES PLANNING AND ZONING COMMISSION 107 E. KAUFMAN STREET O'CLOCKP.M. The meeting of the Planning and Zoning Commission was called to order at 5: 30 p. m. by Keith Flowers, Chairman. The following members were present: John Lee, Chad Lindsey, Rick Hundley, Keith Flowers, James O'Bryan and Sims Norment. Also present were John Godwin, City Manager; Carla Easton, City Engineer; Clyde Crews, Fire Marshal; Billy Trenado, City Council Liaison; Triniti Frazier, Community Development Coordinator and concerned citizens. Absent member(s): Mihir Pankaj. 2. Approval of minutes from previous meetings. (September 18, 2018) Motion was made by Sims Norment, seconded by John Lee to approve minutes for the September 18, 2018 meeting with correction to Item 11 showing motion carried 5-0 with James O'Bryan abstaining. Motion carried 6-0. 3. Public hearing to consider and take action regarding the petition of Lynda Pranulis for a change in zoning from a General Retail District (GR) to a General Retail District (GR) with a Specific Use Permit (SUP) for Permanent Make -Up Cosmetic Tattoos, in the Brookside Addition, Block 11, Lots S, 6 & PT Lot 7, being located at 835 SE 24th Street. John Godwin recommends approval stating the existing ordinance requires a Specific Use Permit for this type service in General Retail but we expect to fix this next month at the November 5U' Planning and Zoning meeting with an ordinance amendment as previously discussed with the board. Public hearing declared open. Ashley Skipworth, 119 FM 2648 Powderly, TX states she is in favor of the petition. Public hearing was declared closed. Motion was made by Chad Lindsey, seconded by John Lee to approve the zoning change. Motion carried 6-0. 4. Public hearing to consider and take action regarding the petition of Makensie Jones for a change in zoningftom a General Retail District (GR) to a General Retail District (GR) with a Specific Use Permit (SUP) for Permanent Make- Up Cosmetic Tattoos, in the MK Properties Addition CB 286, BlockA, Lot 1, being located at 2 740 E Price Street. John Godwin recommends approval stating again this is a technicality that they have to get a Specific Use Permit due to the nature of their business. Public hearing declared open. No one spoke in favor nor against. Public hearing declared closed. Motion was made by Rick Hundley, seconded by John Lee to approve the zoning change. Motion carried 6-0. 5. Public hearing to consider and take action regarding the petition ofDaniel Garzafor a chan in zoningftom a General Retail District (GR) to a General Retail District (GR) with a Spec* Use Permit (SUP)for a Tattoo Studio, in the City of Paris, Block 315, Lot PT -1A, being locatil I t 3605 NE Loop 286 [-I U*)tIvel 0""1 ties glu-nrall-41 rg---j- Daniel Garza, 3920 Castlegate Paris, TX spoke in favor of the petition. Garza states he hopes to be the owner of the Lion's Den tattoo studio. He has worked as a tattoo artist for 5 years in qilil W1 i I . Ga-rn Rt.9-teq w-k-.1mil L _i001 W F kM j1-- I AV department. Garz booked up 2 months in of walk-ins or foot traffic. Garza hopes the board would approve his petition. ra"On"'Im all! I I - JMAW WEbT �T to grow and expand and he doesn't want to put the stipulation of appointment only on the Specific Use Permit. Chad Lindsey states he is in agreement with O'Bryan that it is a little restrictive to have the stipulation of being by appointment only. Godwin reminded the board that the applicant didn't ask for that and further states Garza applied for a zoning change for a tattoo studio by appointment only. Motion was made Keith Flowers, seconded by John Lee to approve the Specific Use Permit for a tattoo studio by appointment only. Motion carried 4-2 with O'Bryan and Lindsey in opposition of the appointment only restriction. 6. Meeting adjourned at 5:45 P.M. Al�I&C131w"tn Chairman