1998-01-14-PEDC 307
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION
REGULAR MEETING
January 14, 1998
The Paris Economic Development Corporation met in their regular meeting on
Wednesday, January 14, 1998, at 4:00 P.M., in the City Hall North Annex, Meeting
Room, Paris, Texas. President Curtis Fendley called the meeting to order with
__ the following boardmembers present: Dick Amis, Michael Rhodes, and Barney
Bray. Also present at this meeting were ex-officio boardmembers, Bobby
Walters, Sims Norment, Executive Director Gary Vest, Michael Malone, City
Manager, and City Attorney T. K. Haynes.
President Fendley stated that the next 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 were none. President Fendley stated since
there were no corrections or additions to these minutes they stood approved as
presented.
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President Fendley asked Mr. Gene Anderson, Director of Finance, to give the
financial report. Mr. Anderson gave the December report. Mr. Fendley called for
questions and there were none. Boardmember Dick Amis made a motion,
seconded by Boardmember Michael Rhodes that the report be approved as
presented. The motion carried unanimously.
President Fendley stated that there would not be a President's Report given at
this time.
President Fendley asked Mr. Vest to make his report. Mr. Vest discussed the
responses received since the last meeting, and the required Annual Report to the
State Comptroller. Mr. Vest stated that he had attended a very successful and
worthwhile meeting with President Fendley and Mayor Clifford in New Orleans
with a representative of Babcock & Wilcox parent company McDermott. He said
that the next official meeting will be held in February. Mr. Vest stated that the
thirty-eight (38) acre land purchase from the Paris Industrial Foundation had been
completed. President Fendley called for questions concerning Mr. Vest's report
and there were none.
President Fendley stated the next item on the agenda was discussion of the loan
guaranty payoff to the local bank consortium and asked Boardmember Dick Amis
to discuss this item. Mr. Amis said that we are proposing a shift in the timing of
the guaranty. He stated that the written method was that the equipment was to
be sold first and then pay the guaranty. He said that in working with the current
prospect that this causes a problem in selling the equipment and basically they
would like to move up the guaranty payment. Mr. Amis said they have a tentative
agreement with the bank group subject to this Board's approval that we pay the
75% guaranty which is $270,000.00, and pay them the same interest that the
S.B.A. would have paid in a similar situation. Mr. Amis said in the history of this
project from the beginning, the P.E.D.C. was coming in as the S.B.A. Mr. Amis
said that they have agreement on this interest which amounts to $12,131.50.
Mr. Amis stated that Nations Bank, as the lead lender in preparing the equipment
for sale, was out $12,458.33 to a company that was going to handle the auction
and Nations Bank would like to be paid this amount.
Mr. Amis stated that there are three (3) items which are the principle amount of
$270,000.00, the interest and paying Nations Bank for their obligation. Mr. Amis
stated that the sum total was a little over $300,000.00. Mr. Amis stated that this
amount had been outstanding for a long time with the bank group. Mr. Amis
advised that the other part of the agreement was that the Board would agree to
sell the equipment subject to the current prospect's failure to complete the
purchase. Mr. Amis said that after the equipment auction, the proceeds would be
used to reimburse the banks the remainder of the amount owed to them, and if
there is anything left at that time then it would be returned to the P.E.D.C. Mr.
Amis stated he would be glad to answer any questions concerning this item.
After discussion, President Fendley called for a motion. Boardmember Rhodes
made a motion, seconded by Boardmember Barney Bray to pay off the loan
guaranty to the local bank consortium as outlined by Mr. Amis. The motion
carried unanimously,
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President Fendley asked if there was any other business and there being none he
declared the board meeting adjourned.
President Curtis Fendley
ATTEST:
Assistant City Clerk, Barbara Denny