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02/15/2022 MinutesPARIS ECONOMIC DEVELOPMENT CORPORATION MONTHLY MEETING Paris City Council Chambers 107 East Kaufman St. Paris, Texas 75460 Tuesday, February 15, 2022 5:30 O'CLOCK P.M. MINUTES Board Members Present: Josh Bray, Chairman Curtis Fendley, Vice Chairman Chase Coleman, Secretary/Treasurer Stephen Terrell Erik Roddy Mark Homer Ex -Officio Members Present: Paula Portugal, City Mayor Grayson Path, City Manager Pam Anglin, President PJC Clayton Pilgrim, City Council Liaison Paul Allen, Lamar County Chamber President rail to (briar Staff Present: Maureen Hammond, Executive Director Chris Stout, Economic Development Associate Stephen Kelly, Executive Assistant Legal Counsel: Casey Gain, PEDC Attorney Guest(s) Present: Andrew Mack, City of Paris Mary Madewell, The Paris News Brittany Martin, McClanahan and Holmes Shawn Napier, EST Inc. Page 1 of 3 Mr. Bray called the monthly meeting of the Paris Economic Development Corporation to order at 5:30 p.m. on February 15, 2022. I nunratinn Mr. Erik Roddy gave the invocation. Citizens' Input Mr. Bray invited those present to speak during Citizens' Input. No one came forward and the Citizens' Input was closed. Discuss and Consider Approval of the Minutes of the Regular Meeting held January 18, 2022 Mr. Bray asked for discussion and approval of the minutes. Mr. Roddy noted a typo in the minutes where Mr. Fendley is shown as both making and seconding a motion and suggested correcting the error before approval. Mr. Fendley made a motion to approve the January 18, 2022, minutes with the suggested correction. Mr. Terrell seconded the motion. Vote was 6 -ayes to 0 -nays. PEDC Board Meeting Minutes Monday, February 15, 2022 Page 2 of 5 Discuss and Consider Approval of the 2020-2021 Audit Report as Presented by Brittany Martin of McClanahan and Holmes Ms. Martin presented the 2020-2021 audit report to the Board. As of September 30, 2021, total assets came to $6.6 million. The total liabilities amounted to $1.2 million. The total net position was $5.4 million with a positive unrestricted net position. Ms. Martin informed the Board that the cash flow increased due to less business incentives going out for the year. She continued by stating Land Development costs decreased with the final land transfers of 2021. She also showed that sales tax revenue increased compared to last year and expenses were up due to personnel changes and hiring of a replacement. At this point, Ms. Martin concluded her report and Chairman Bray opened the floor for questions and discussion. Following discussion, Mr. Roddy made a motion to accept the 2020-2021 audit report as presented. Mr. Coleman seconded the motion. Vote: 6 -ayes to 0 -nays. Discuss and Consider Approval of Resolution for Application of Economic Development Administration (EDA) Grant Ms. Hammond discussed the continuous process of making PEDC properties site -ready and the funding of infrastructure improvements. Following the board approval during last month's meeting, the PEDC will be applying for an EDA grant. The PEDC entered an Interlocal Agreement with the Ark -Tex Council of Governments (ATCOG) to assist with the management and administrative services of the grant process. Additionally, the Board approved EST inc. as the engineering firm of record to conduct the PER (Preliminary Engineering Report). She continued by stating EST Inc. has completed the PER for the road and infrastructure improvements to be made in the remaining acreage of the NW Industrial Park on NW Loop 286. The completed PER will be used to complete the information needed for various components of the EDA grant application process. Ms. Hammond asked Shawn Napier of EST Inc. to present his findings. Shawn Napier presented a PER (Preliminary Engineering Report) draft to the board and gave a preliminary overview of the renderings provided along with estimations of cost and scope of work. Ms. Hammond concluded by stating that if the EDA grant is awarded, the PEDC does not have to accept the grant. The grant is highly competitive, but she believes that the PEDC has a great opportunity at obtaining an award. Ms. Hammond made the recommendation for the board to approve the following through the proposed resolution: 1. The Board formally authorizes the completion and submission of the EDA grant application. 2. The Board designates the ATCOG to act as the administrators for the grant, 3. The Board designates EST Inc. to provide engineering services for the process, and 4. The Board authorizes the Executive Director as a Representative to act on the Board's behalf on all matters related to the grant, and 5. The Board authorizes the application for an estimated $ 1.5 million, with 80% of the grant would be requested from EDA with a remaining 20% responsibility of the PEDC at $ 300,000.00. PEDC Board Meeting Minutes Monday, February 15, 2022 Page 3 of 5 Ms. Hammond added that in partnership with the City and Mr. Grayson Path, a range of infrastructure improvements (largely water line installation) at the NW Industrial Park have been discussed and will be performed by the City. As such, the PEDC will pursue using the expenses made by the City for these improvements as in-kind contributions towards the 20% responsibility of $ 300,000. Chairman Bray asked Ms. Hammond for an estimate of expenses associated with funding of the grant. Ms. Hammond responded with a projected total of $15,000 for engineering fees and Mr. Shawn Napier concurred with the amount stated. Mr. Coleman made a motion to approve the resolution as presented. Mr. Fendley seconded the motion. Vote: 6 -ayes to 0 -nays. Discuss and Consider Approval of Proposal and Scope of Work of North Star Place Branding and Marketing for branding and marketing services Ms. Hammond summarized and provided an update regarding the joint branding project with the PEDC, City of Paris and Lamar County Chamber of Commerce. The Branding Steering Committee consists of the following members: PEDC: Ms. Maureen Hammond; Exec. Director, Dr. AJ Hashmi; Board Member, Stephen Terrell; Board Member, City: Mr. Grayson Path; City Manager, Reginald Hughes; Mayor Pro Tem, Mihir Pankaj; Council Member, Chamber/VCC: Paul Allen; President, Jay Hodge; Chairman, Vicki Ballard; Incoming Chairman. Ms. Hammond provided an update on the Steering Committee's activity as follows: The Branding Steering Committee held interviews during the week of Jan. 101h with the five finalists selected by Mr. Grayson Path, Ms. Maureen Hammond and Mr. Paul Allen. The last interview was followed by a meeting of the Steering Committee to evaluate, discuss, and select the top bidder. Following the meeting, the selection process for the Branding/Identity Development RFP was narrowed down to two potential candidates: North Star and Chandlerthinks. Following evaluation and discussion of the two finalists Branding Steering Committee on Jan. 13th, the consensus was that both firms would be capable of delivering a great product, but the majority of members chose North Star as their top choice. Therefore, she stated that the Steering Committee is making the recommendation to move forward with North Star's proposal of $85,000. Hammond explained that there were several factors that led to the selection of North Star as the top bidder - their approach appears to be more meticulous; they have a larger team, and they more clearly identify deliverables. She also stated that North Star proposals includes the implementation of the brand in addition to proposed deliverables, which was another important deciding factor. Ms. Hammond concluded by stating the City will execute the contract instead of there being individual contracts for each entity. On Feb. 14th, 2022, Mr. Path presented the agreement to the council for approval, with the understanding that the approvals from each board approving the scope of services as presented would also be required. While all three entities have budgeted for this expense, Ms. Hammond noted that she, Mr. Path and Mr. Allen felt it was important to allow each board to review and accept the proposal and the scope of work before moving forward. Mr. Terrell added that he is really proud and excited for the community for the cross -functional group that has come together to include the three entities for a branding project. Ms. Hammond made the recommendation for the board to approve the North Star Place Branding and Marketing's Proposal and Scope of Work for branding and marketing services. PEDC Board Meeting Minutes Monday, February 15, 2022 Page 4 of 5 Mr. Terrell made a motion to approve the proposal as presented. Mr. Homer seconded the motion. Vote: 6 -ayes to 0 -nays. Receive and Discuss Report from Executive Director Ms. Hammond discussed the Business and Industry Survey as part of the PEDC's 2 -year plan of work that was launched in January in partnership with Paris Junior College. This consists of a formal survey and visitation program to proactively respond to the needs of businesses and gather information that will aid in policy decision-making moving forward. To date, there have been a total of 4 employer visits, with a total goal of 20 employers completed by the end of August. Ms. Hammond asked PJC President Dr. Pam Anglin if she would like to add any additional comments; Dr. Anglin stated that the information has proven to be very beneficial not just to the PEDC and PJC but will also be valuable to the city moving forward as well. She continued the report with a discussion of the cost -of -living index. The Council for Community and Economic Research (C2ER) is a national firm that conducts community, economic, and workforce development research. She explained that they are widely known for compiling cost of living index data and disseminate the data on a quarterly basis. The last time the PEDC participated was in 2014 and Ms. Hammond thought it was important to continue collection of this information starting Jan. I" during the first quarter. At the end of the three quarters, the compiled cost of living index data will be produced into an annual report for review. Ms. Hammond reported next on the High Demand Job Training Grant. In accordance with the 2021-2022 fiscal year budget and in partnership with the Texas Workforce Commission, the PEDC contributes $25,000 with a 50/50 matched grant totaling $50,000 towards expenses for training for high -demand occupations. These funds were utilized to aid in the expansion of PJC's program with the purchase of 5 new welding machines for skill development and workforce development. She added that this is another way the PEDC is supporting workforce development by with a pipeline of talent to our workforce. Ms. Hammond concluded her report by briefly discussing the Community Investment Program. As part of the financing of the Delco project the company has been working with Rural Development Partners. Part of the financing package for Delco through new market tax credits required that Rural Development Partners set aside $90,000 for workforce development training. Delco matched their funding, bringing the total to $180,000 to be used towards a workforce development project and or program that benefits the broader community. Ms. Hammond stated that this is one of the many highlights that has come out of Delco's expansion project. Since PEDC is the primary economic development entity for the region, Rural Development Partners asked the PEDC to facilitate the forming of a Community Advisory Board. This Advisory Board consists of members from the local school systems and Texas Workforce, including the following: • Ms. Maureen Hammond, PEDC Executive Director • Dr. Pam Anglin, President PJC • Ms. Kelli Stewart, Superintendent of NLISD • Mr. Paul Jones, Superintendent Paris ISD • Mr. Wes Brown, Career and Technology Director NLISD • Mr. Caleb Tindel, Career and Technology Director PISD • Mr. Bart Spivey; Business Development Project Manager, Workforce Solutions Northeast Texas PEDC Board Meeting Minutes Monday, February 15, 2022 Page 5 of 5 The board is responsible for developing and submitting a proposal to utilize the funds along with continuous engagement with local employers to identify current needs. She concluded the report by expressing her excitement for the ideas that will be developed with the collaborated effort. Chairman Bray thanked Dr. Anglin for her time contributed on the Business and Industry Survey. No action was taken on these items. Convene into Executive Session: 1) Pursuant to Section 551.072 of the Texas Government Code to discuss and deliberate the purchase, exchange, lease, or value of real property. 2) Pursuant to Section 551.087 of the Texas Government Code to (1) discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1), to wit: • Project Pecan Grove • Project Red Maple • Project Iron Horse 3) Section 551.071 of the Texas Government Code, Consultation with Attorney, to receive legal advice from the PEDC Attorney about (1) pending or contemplated litigation and/or (2) on matters in which the duty of an attorney to their client under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with this chapter, regarding potential loan to Paris Economic Development Corporation. Chairman Bray convened the Board into Executive Session at 5:55 p.m. Reconvene into Open Session and Consider Action on Item(s) Discussed in Executive Session Chairman Bray reconvened the Board into Open Session at 6:23 p.m. No action was taken on items from executive session. Discuss Future Agenda Items No future agenda items were brought forward to discuss. Adiourn Mr. Roddy made a motion to adjourn the meeting. Mr. Homer seconded the motion. Vote was 6 -ayes to 0 -nays Mr. Bray adjourned the meeting at 6:25 p.m. Respectfully submitted, Stephen Kelly'" Executive Assistant Paris Economic Development Corporation