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1995-01-11-PEDC 0 MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION January 11, 1995 The Paris Economic Development Corporation met in a regular meeting on Thursday, January 11, 1995, at 4:00 P.M., in the City Hall North Annex, Fire Training Room, Paris, Texas. Chairman Philip Cecil called the meeting to order with the following board members present: Dick Amis, Curtis Fendley, Leon Williams, and Barney Bray. Also present were ex-officio board members, Deane Loughmiller, Ike Jewett (representing Gary Cunningham), Bobby Walters, Bill Vaughan, Gary Vest, Economic Development Director, Michael E. Malone, City Manager, and T.K. Haynes, City Attorney, as counselor. 71 Mr. Cecil stated that the first item on the agenda was approval of the minutes from the previous meeting of the Paris Economic Development Corporation. He asked if there were any corrections or additions to the minutes of the previous meeting and there being none the minutes stood approved as received. -- Chairman Cecil asked Mr. Anderson to give a brief summation of the financial report. Mr. Anderson noted that at some point in time as the balance grows the board may want to consider an investment earning more interest than the present interest bearing account. Boardmember Amis made a motion which was seconded by Boardmember Bray, to approve the financial report as presented which carried unanimously. Chairman Cecil stated that Mr. Don Wall, President of the East Texas Gulf Highways Association had delivered a written request concerning'the promotion of Highway 271 south between Paris and Mt. Pleasant through the East Texas Gulf Highways Association which the Chamber of Commerce has been involved in. Chairman Cecil opened the request for discussion by the Board. Mr. Vaughan, President of the Chamber of Commerce, stated that Mr. Vest and Mr. Wall were in the process of soliciting contributions from all members of the East Texas Gulf Highways Association. He said the major issue is the distance between Paris and Mt. Pleasant. Chairman Cecil stated this would be reimbursement of actual expenses for promotion of the meeting, reception, etc., and Mr. Vaughan agreed. Mr. Vaughan said he would to hear from the other boardmembers since this was not an action item on the agenda for this meeting, but it will be on the agenda for the next meeting. Boardmember Fendley questioned the amount budgeted for expenditure and Mr. Vest stated the $3,000.00 is the estimated expenditure. Mr. Vest said this has become an economic development issue which effects Paris' ability to expand our industrial base and to service the existing industries. He said the numbers reflect the industrial activity in our community and the need for the four lane development to enhance the industrial activity. Mr. Vest said they would like to bring the bills to the Board to cover the expenses incurred. Chairman Cecil suggested that since it was the consensus of the Board that transportation was critical to industrial success at the next board meeting the board consider the approval of $3,000.00 backed up by actual expenses reflected in the bills. Chairman Cecil asked Mr. Vest to make his report. Mr. Vest said they participated in a survey recently done by the Tyler Economic Development Group and provided copies to the boardmembers. Chairman Cecil stated that at the meeting in December the board asked Mr. Vest to communicate with cities involved in the building business. Mr. Vest said he had contacted several cities that had done this type building program and discussed the information he had received. Mr. Vest stated he had also talked to our allies such as T.U. Electric, Lone Star Gas and SWEPCO regarding spec building programs and each indicated 75% to 85% of all prospects they handle look at existing facilities. He said that SWEPCO recommended a 100,000 sq. foot building and have also offered to do some financing for some of the communities that are interested in taking on this type building program. He said they had stated typically they would participate anywhere from 10% to 50% of the project. 72 City Attorney Haynes asked Mr. Vest if they participated in financing for 10% to 50% of the building and Mr. Vest said that was correct. Mr. Vest said it was his understanding they had not actually done this, but they had offered this to their communities in their service territory which is a new program and this was a loan to be repaid. He said most of the people he talked with had success with spec building programs. Chairman Cecil asked Mr. Vest whether based on experience and the information developed anyone regretted this type program. Mr. Vest said he did not find anyone that regretted this type program. Chairman Cecil called for questions regarding the study and whether it was appropriate for the Board to move forward at this time, or whether additional information was needed. Boardmember Fendley stated he felt it was important to listen to the allies and the board should investigate the cost, but felt the program should be pursued. Boardmembers Amis, Williams, and Bray agreed with Boarmember Fendley that the Board should move forward with this project. Ex-officio Boardmember Vaughan advised that Mr. Vest had briefed the Executive Committee of the Chamber and they were fully supportive of the concept. Mr. Vest said he had presented this project to the Industrial Managers Group and they were supportive of the idea. Chairman Cecil stated he felt everyone was in agreement with the idea and in anticipation of reaching that conclusion he asked Mr. Haynes to be prepared to discuss the board's charge from the City Council as it relates to projects that the City can undertake. City Attorney Haynes read that portion of the bylaws. Boardmember Bray stated most major building corporations are willing to design foundations, structural and building design asking only for the opportunity to sell the building,and no expenditure is required. City Manager Malone advised that an analysis of all the existing properties available and location of utilities needs to be made. He said someone is going to have to contact the companies selling the buildings and analyze information in terms of engineering design, location on lot, lot cleaning and maintenance and as well as sign building. Chairman Cecil asked Mr. Haynes if he interpreted this to mean that in the event that the City makes the service available that this Board is required to avail itself. Mr. Haynes said that was correct. City Attorney Haynes advised the reason this section was put in the bylaws by the City Council at the time this was done is that all services can be provided cheaper through the City than any other method. After discussion, Chairman Cecil stated he felt the Board was talking about a 60,000 foot building that's twice as long as it is wide with at least a 28 foot clearance. City Manager Malone stated he saw this as a collaborative effort with Mr. Vest, the City Engineer, the City Staff and the Board drawing the information together and bringing it before the Board. Mr. Vest stated he would like to get with the City Engineer and develop the specifications for the building and then evaluate the sites. Chairman Cecil stated he was going to appoint a committee to evaluate the sites and report to the Board. Mr. Vest said he felt Boardmember Bray was correct and that the City Engineer could develop the specifications and then you contact the manufacturers who perform the mechanical and structural design, etc., and report to the Board at a later date with the recommendations. 73 After discussion by boardmembers relating to sites, Chairman Cecil called for a motion. Boardmember Fendley made a motion, seconded by Boardmember Amis to instruct the City Staff to proceed with the design of the building which carried unanimously. Chairman Cecil appointed a committee comprised of Mr. Amis, Chairman, Mr. Bray and Mr. Vest to study the site situation and report back to this Board considering the availability of utilities, all the items mentioned, by Mr. Bray, and the availability of sites already in the Industrial Foundation or other acceptable sites. Mr. Vest stated he had been working with the City Engineer Earl Smith and there are a lot of variables to be taken into consideration such as the Enterprise Zone tax abatement. Chairman Cecil called for any other questions or information which needed to be discussed regarding the building project. Chairman Cecil stated that at the last meeting Mr. Vest presented a Preliminary Marketing Plan for study by the Board with action to be taken at the January meeting. Mr. Vest commented in his Assessment of Strengths and Weaknesses that he listed in the Workforce Section high unionization as a possible weakness. He said he would like to bring it to the Board's attention that this should be removed from our Strengths and Weaknesses Assessment because it could be an indication of a problem when there is actually not a problem. Boardmembers discussed the items under Weaknesses concerning the Location Section of being too close to D/FW, and under the Workforce -- Section regarding high tech training limited. After discussion, a motion was made by Boardmember Amis, seconded by Boardmember Bray to approve the Proposed Marketing Plan as amended which carried unanimously. Resolution No. 95-001-adopting a Marketing Plan as amended. A motion was made by Boardmember Amis, seconded by Mr. Bray for approval of the resolution adopting a Marketing Plan as amended. The motion carried unanimously. RESOLUTION NO. 95-001 WHEREAS, it is deemed appropriate that the Paris Economic Development Corporation adopt a marketing plan; and, WHEREAS, the Director of Economic Development, Gary Vest, has prepared and presented a marketing plan which appears to meet the immediate needs of the Paris Economic Development Corporation, a copy of which plan is attached hereto as Exhibit A; NOW, THEREFORE, -- BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that the marketing plan attached hereto as Exhibit A be, and the same is hereby, adopted. PASSED AND ADOPTED this 11th day of January, 1995. Philip R. Cecil, President 74 ATTEST: Richard M. Amis, Secretary-Treasurer APPROVED AS TO FORM: T.K .Haynes, City Attorney PARIS ECONOMIC DEVELOPMENT CORPORATION PRELIMINARY MARKETING PLAN 75 TABLE OF CONTENTS PARIS ECONOMIC DEVELOPMENT CORPORATION PRELIMINARY MARKETING PROGRAM TABLE OF CONTENTS Page 1 Objective Page 2 Program Elements Retention & Expansion Collateral Materials Image Materials Page 3 Trade Shows Advertising Direct Mail Page 4 Property Promotions Allies Day Texas Marketing Team Page 5 Resource Materials Page 6 Ad Schedule Page 7 Strengths & Weaknesses Assessments Appendix A Allies Trade Show Schedules TU LSG TDOC -- Appendix B Sample Ads Appendix C Economic Impact Appendix D Proposal from PACE 76 PRELIMINARY MARKETING PROGRAM PARIS ECONOMIC DEVELOPMENT CORPORATION 1994-1995 STRATEGY The Paris Economic Development Corporation Marketing Program is a multifaceted effort. The primary goal is prospect development through inquiry generation and image building. Target industry groups will be reached through participation in trade shows, direct mail, some advertising, and personal contact. While target marketing has been the "craze" of the late eighties and early nineties, there remains a significant need to do a more broad range marketing which PEDC hopes to accomplish through general advertising, working with the Texas Marketing Team, and allies communication. Theme While a specific them has not yet been settled upon by the PEDC, areas of consideration include: testimonials of existing industry, association with local recognized corporate names, a central geographic location, the rural advantages, etc. COMMUNICATION OBJECTIVES * Recognition of Paris as a viable industrial location * Make the selection short list for site searches OBJECTIVES * Expand existing economic and industrial base. * Expand employment opportunities community wide. * Attract new industrial sector jobs. PEDC MARKETING PROGRAM 1.) Retention and expansion efforts - Monthly visits to local industries $ 1,000 - Monthly industrial managers meetings N/C - Support for local industry needs; infrastructure development, training, permitting, etc. N/A - export assistance, especially to Mexico - corporate headquarters contacts of existing industry SUB-TOTAL $ 1,000 77 2.) Collateral Materials - Promotional brochures/pamphlets $ 3,000 - Fact book 5,000 - Community profiles 1,000 - Customized presentations 2,500 - Video production 1,500 - Resource materials (directories) 4,359 Details Page 4 SUB-TOTAL $17,359 3.) Image Materials - Specialty advertising products to be used for public relations, trade shows, prospect visits, etc. $10,000 SUB-TOTAL $10,000 4.) Trade Shows - TU, Lone Star, TDOC* See Appendix A - Trends 2000, Anaheim, CA Feb. 14 & 15 (TU) 1,500 - Plant-Ex, Toronto May 1 4 (LSG) 1,500 - Medical Design & Technology June 6 - 8 (LSG & TU) 1,500 - Food Plants '95 TBA (LSG) 1,500 SUB-TOTAL $ 6,000 5.) Advertising (see ad schedule Page 6) $18,340 See Appendix B SUB-TOTAL $18,340 6.) Direct Mail - periodic mailings $10,000 Target Groups: Food Plastics Pharmaceuticals Geographic Areas: Dallas/Ft. Worth Houston Oklahoma City Los Angeles New York Chicago Customers/Suppliers of Existing Industry Companies Marketing to Mexico SUB-TOTAL $10,000 78 * Cost to participate with TDOC, $2,000 per show. Because of this expense TDOC should only be utilized as last resort. 7.) Marketing Properties, sites and buildings $15,000 - Mowing - Clearing - Bill Boards SUB-TOTAL $15,000 8 .) Allies Day - hosting allies in Paris 3,000 SUB-TOTAL $ 3,000 9.) Texas Marketing Team - Dues 2,000 - IDRC Meeting's 5,000 SUB-TOTAL $ 7,000 Proposed Marketing Budget $65,600 RESOURCE MATERIALS REFERENCE ANNUAL MATERIALS SUBSCRIPTION Directory of Corporate Affiliations $ 950 Texas Directory Manufacturers 170 Gale Research, Inc.: Manufacturing USA 160 American Chamber of Commerce Researchers Association 50 U.S. Industrial Outlook 40 Standard Industrial Classification Manual 150 The Wall Street Journal 99 Sales and Marketing Management 130 Misc. Mailing. Lists 1,500 SUB-TOTAL $ 3,249 79 ASSOCIATION DUES Texas Research League 240 American Economic Development Council 250 Southern Industrial Development Council 75 Texas Economic Development Council 5 PEDC Board Members @ $65 325 Mike Malone & Gary Vest @ $95 190 North East Texas Economic Development Roundtable 30 SUB-TOTAL $ 1,110 TOTAL $ 4,359 PEDC AD SCHEDULE 1995 EDITORIAL PUBLICATION ISSUE SUBJEC T COST Area Development Feb. '95 Texas Report $1,830 -- 1/4 Page B & W (Close Dec. 25) July '95 1/4 Page B & W Close May 25 Rural Locations 1,830 Add one color: $585; 4-color: $1,615 Business Facilities April '95 Texas Report 1,780 1/4 Page B & W (Close Mar. 11) Add one color: $500; 4-color: $1,500 Next Year Jan. '96 Site Seekers Guide (2,000) Expansion 2,000 TBA Outlook Texas Annual TX Department 1,900 1/4 Page B & W (Close Dec. 15) of Commerce -- Site Selection Handbook 2,000 TBA Plant's Sites & Parks 2,000 TBA Target Ads 5,000 TBA TOTAL $18,340 PEDC -- MARKETING PROGR/U4S ASSESSMENT STRENGTHS WEAKNESSES Location Location - Defined market area - Too close to D/FW - Four state region - No interstate highway - Central U.S. Incentives Incentives - Freeport Exemption - Limited financing - Enterprise Zone creative capital - Tax abatement - Venture capital - Sales Tax Revenues Workforce Workforce - Large # of available - Limited skilled workers workers - Strong work ethic High unionization - Access to higher education High tech training - Smart Jobs Fund limited Transportation Transportation - Excellent motor freight - No air service carriers - No public - 2 short line railroads transportation - Contract trucking Infrastructure Infrastructure - Excellent water supply with - Limited main ample capacity development - Solid waste disposal - Sewage treatment - Telecommunications capacity Industrial Base - Strong & diverse Health Care - Excellent available service Sites Sites - Excellent availability - Limited ownership or - Good price control - Good access Buildings Buildings - Possible speculative - None available Climate - Mild, uninterrupted to manufacturing operations Quality of Life Quality of Life - Outstanding Livability - Limited recreational & entertainment options APPENDIX A 81 1995 TRADE SHOW AND MARKETING SCHEDULE Trade Shows: Feb. 14-15 Trends 2000 - Anaheim, CA., TUE Booth - Gary Kennedy Feb. 28-March 3 NEPCON - Anaheim, CA., TDOC Booth - John Bennett with TUE communities June 3-7 Institute of Food Technology - Anaheim, CA., Johnson County - TUE Booth - Pat Jamison June 6-8 Medical Desiqn & Technology - New York, N.Y., · East Texas Croup - Layne Ballard Sept. 27-29 NBAA - Las Vegas, NV, Waco & NTC John Prickette, Roy Wolfe Nov. 7-9 WESCON - San Francisco, TUE Booth, 135 Corridor, -- Ernest Harris Marketing Trips: May 1-4 PLASTEX - Toronto, Canada, MIDAS Group, Thom Lambert Sept. 12-14 Plastic USA - Chicago, Two Business Development Executives Sept. 2S-28 Iron And Steel EXPO. - Pittsburgh, PA., Two Business Development Executives 82 1995 Trade Shows Texas Marketing Team Lone Star Gas Company 83 Potential Trade Shows For Fall 1994-1995 (TDOC booth use or participation by attendance) 84 Potential Trade Shows For Fall 1994-1995 (continued) 85 Potential Trade Shows For Fall 1994-1995 (continued) 86 APPENDIX B PARIS, TEXAS "Where Industry Is Welcome" Quality Living Diversified Labor Force We appreciate our present industrial family of 13 major companies and always remain on call to support their special needs. The the best to be found in the Southwest. Contact our experienced industrial team for further information. Chamber of Commerce of Lamar County P.O. Box 1096 Pads, Texas 75460 (214) 784-2501 87 - Small town flexibility. ONE WAY -- Enthusiasm, flexibility, and collaboration is more common broad-based community support than confrontation. make all the difference in the You'll feel right at home in the world when you're selecting a small toxwls of New Mexico, new business location. U.S.A. Our communities want to If you're sincerely interested attract your company to their area. in joining forces, we'd like to So we'll do everything we Can to show you a few places where make business a pleasure. there's a long history of pulling Discover small town sites with together for the mutual benefit of big potential. Call us today, and everyone concerned. Where we'll work with you to achieve businesses are still welcomed your goals. There's more than with open arms. And "one way" to get the job done. A welcome change of place Contact George W. Bootes, III, Director of Economic Development c/o Plains Electric, 2401 Aztec Road NE, Albuquerque. New Mexico 87107 Phone (505) 889-7314 Fax (505) 889-7349. Circle 357 on Executive Inquiry Card 88 Sioux City, Iowa Ad 89 Deal Urban-Live Rural Ever wish you could enjoy the rura lifestyle without sacrificing competitive edge? Make the move that affords both. Businesses on the Plains of the Southwest If your priorities fit our style, contact enjoy lower overhead and operating costs, plus Thompson Mayberry for an information packet. increased productivity from a labor force that's well above average. On thc home front, workers live in secure, pleasant surroundings, enjoying a mild SOUTHWESTERN PUBLIC SERVICE COMPANY climate, a comfortable pace Economic Development Department and better schools. P.O. Box 1261 · Amarillo, Texas 79170 (806) 378-2176 · FAX (806) 378-2181 Circle 373 on Executlvo Inquiry Card 90 Top 10 Reasons To Choose Lehigh Valley, Pennsylvania Locatlon Location Location For more informatlon on howwe can help, contact: Northampton County Industrial Development Development Corporation Corporation of Lehigh County Jody Oliver, Director of Marketing Francis "Bud" Hackett. Executive Dir. 157 S. 4th Street EO. Box 637 P.O. Box 1410 Easton, PA 18044-0537 Allentown. PA 18105 Ph. {610) 253-4213 Ph. (610) 437-5581 FAX (610) 253-6114 FAX (610) 437-5583 Circle 559 on Executive Inquiry Card 52 91 San Angelo, Texas Business Frontier Ad 92 APPENDIX C What 100 New Factory Workers Mean .. To A Town $ 1,948,353 202 61 More More Personal More People School Children Income Per Year 102 $490,000 7 More More More .Bank Retail Families Deposits Establishments 64 More $1,477,453 Employed in More Retail Non-Manufacturing . Sales Per Year 93 APPENDIX D November 21, 1994 Mr. Philip Cecil Mr. Gray Vest Paris Economic Development Corporation Paris, Texas Gentlemen: Thank you for your time Friday. I told my wife when I got home how much I really enjoy Paris, Texas, and the nice people of your community. Listed below are our understanding of your needs in reference to a Marketing Plan: 1. Interview P.E.D.C. Board Members and 5 - 7 members of the Chamber of Commerce Marketing Committee to solicit their opinions on a Three.Year Marketing Plan. 2. Work with Paris leaders to define Job goals for 1995, 1998 end 1997. Jobs will be counted by the existing manufacturing companies and new companies brought into the community. 3. Make recommendations on resource materials required to effectively sell Paris, Texas. 4. Establish Marketing Strategies for 1995, 1998 and 1997, These will be bullet-point recommendations. 5. Work with Mr. Gary Vest on geographical targets and S.I.C. targets, 6. Evaluate all existng sales tools and make recommendations with approximate cost for each recommendation. 7. Recommend which trade shows to attend and what strategies to effectively sell Paris at these shows. 8. Recommend a Marketing Campaign which would Include direct mall, tele-marketing, public relations, advertising, speeches end articles and corporate prospecting trips. 9. Recommend strategies to assist existing industries to stay and expand in Paris, Texas. This would include costs of each strategy. 94 Paris Economic Development Corporation November 21, 1994 Page 2 10. P.E.D.C. Boazd responsibilities. 11. Chamber of Commerce Market3ng Committee Responsibilities 12. Networking - What marking allies are required to visit and form to effectively sell Paris and the costs related to each item. Please remember that it will require dollar resources to effectively market Paris, Texas. This document will be a concise report With specific dollar resources outlined. Staffing will be provided by John Lovorn and/or Dr. Brenda Shull depending on the timing of the project. The cost will be $25,000 plus expenses. We will do everything possible to keep expenses to a minimum, Should the P.E.D.C. require a detailed Target Industry Analysis with growth trends and detailed analysis of these analyzed targets, please add $18,500 to our base bid of $25,000. Thank you for your consideration of this proposal, Sincerely, John M. Lovorn, Jr., C.E.D. President Chairman Cecil advised the Board at the last meeting they had given Mr. Vest an indication that the board would be willing to reimburse the Chamber if they made a payment in the amount of $1,900.00 due to time restraints. Mr. Vest advised that there have been no expenditures at this time, but there has been a commitment to spend the money, and they did sign up with the Texas Department of Commerce for the "Outlook Texas" publication. Mr. Vest stated that since the Marketing Plan has been approved that this amount would fall under the Marketing Plan. Resolution No. 95-002, authorizing and directing preparation of a check in the amount of $1,900.00 for the appropriate execution and to transmit the same to the Lamar County Chamber of Commerce, was presented. A motion was made by Boardmember Amis, seconded by Boardmember Fendley for approval of the resolution. The motion carried unanimously. 95 RESOLUTION NO. 95-002 WHEREAS, it is deemed appropriate, desirable and essential to our industrial development effort that advertising, at the cost of $1,900.00, in the Texas Department of Commerce publication entitled Outlook Texas be financed by the Paris Economic Development Corporation; and, WHEREAS, the Lamar County Chamber of Commerce obligated for such expenditure due to the deadline for being included in said publication, and it would be appropriate that the Lamar County Chamber of Commerce's obligation be paid by the Paris Economic Development Corporation; NOW, THEREFORE, BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION, that the Lamar County Chamber of Commerce's obligation in the amount of $1,900.00 for the advertisement in the Texas Department of Commerce publication entitled Outlook Texas be paid by the Paris Economic Development Corporation; and, BE IT FURTHER RESOLVED that the Director of Finance, Gene Anderson, be, and he is hereby, authorized and directed to prepare a check for appropriate execution and to transmi[ the same to the Lamar County Chamber of Commerce. PASSED AND ADOPTED this 11th day of January, 1995. Philip R. Cecil, President ATTEST: Richard M. Amis, Secretary-Treasurer APPROVED AS TO FORM: T. K. Haynes, City Attorney Chairman Cecil asked if there was any other business and there -- being none he declared the board meeting adjourned. CHAIRMAN PHILIP CECIL ATTEST: ASSISTANT CITY CLERK, BARBARA DENNY