1998-06-29-PEDC 366
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION
SPECIAL MEETING
June 29, 1998
The Paris Economic Development Corporation met in a special meeting on
Monday, June 29, 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 Leon
Williams. Also present at this meeting were ex-officio boardmembers, Sims
Norment, Mayor Charles Neeley, Executive Director Gary Vest, City Manager
Michael E. Malone and City Attorney Scott Foster.
President Fendley stated that the first item on the agenda was consideration of a
resolution authorizing Southwest Securities as financial advisor and authorizing
the City Attorney to procure bond counsel to initiate the process of issuing
approximately $4,000,000.00 in Sales Tax Revenue Bonds, Series 1998, and to
seek the concurrence of the Paris City Council in authorizing the same.
President Fendley stated that the board wanted to amend the resolution to also
include other financing options. He asked Mr. Vest to explain this action. Mr.
Vest stated that the Board would like to have the freedom to either issue and sell
the bonds at a public sale or secure the same type financing through our local
lending institutions.
After discussion by the Board, City Attorney Scott Foster read the resolution.
Resolution No. 98-008, authorizing the Paris Economic Development Corporation
to initiate the process of issuing approximately $4,000,000.00 in Sales Tax
Revenue Bonds, Series 1998. By resolution, Southwest Securities is retained as
financial advisor and City Attorney Scott P. Foster is requested to procure bond
counsel, and in the alternative Paris Economic Development Corporation should
seek financing in a means that best suits its needs for said process subject to
authorization of such process initiation by the City Council of the City of Paris.
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PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 98-008
WHEREAS, the Board of Directors of the Paris Economic Development Corporation is
-- desirous of initiating the process of issuing approximately $4,000,000.00 in Sales Tax Revenue
Bonds, Series 1998; and,
WHEREAS, it is deemed appropriate that the authorization of the City Council of the City
of Paris be sought with regard to such issuance and that, upon such authorization, Southwest
Securities be retained as financial advisor and that the City Attorney, Scott P. Foster, be requested
to procure bond counsel; and,
WHEREAS, it is further deemed appropriate that, in the alternative, the PEDC should
seek financing in a means that best suits its needs; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the City Council of the City of Paris, be, and it is hereby, requested to
authorize the PEDC to initiate the process of issuing approximately $4,000,000.00 in Sales Tax
Revenue Bonds, Series 1998; and,
BE IS FURTHER RESOLVED, that Southwest Securities be, and it is hereby, retained
as bond counsel for said process, subject to authorization of such process initiation by the City
Council of the City of Paris; and,
BE IT FURTHER RESOLVED, that the City Attorney, Scott P. Foster, be and he is
hereby, requested to procure bond counsel for said process, subject to authorization of such
process initiation by the City Council of the City of Paris; and,
BE IT FURTHER RESOLVED, that, in the alternative, the PEDC be, and it is hereby,
authorized to seek financing in a means that best suits its needs.
PASSED AND ADOPTED this 29th day of June, 1998.
Curtis Fendley, President
ATTEST:
Richard M. Amis, Secretary-Treasurer
-- APPROVED AS TO FORM:
Scott P. Foster, City Attorney
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After discussion, Boardmember Mike Rhodes made a motion, seconded by
Boardmember Dick Amis that this resolution be adopted, and the Board voted
unanimously to adopt the resolution. Mr. Vest stated that Boardmember Barney
Bray was advised of this action, and he had executed a proxy indicating his
approval.
President Fendley stated the next item on the agenda was approving the Annual
Budget for fiscal year 1998/1999. He asked Mr. Vest to discuss this item. Mr.
Vest presented the proposal for the Annual Budget for the upcoming fiscal year.
He discussed the revenue statement and the Board's commitments. Mr. Vest
also discussed the budget based on the revenues. President Fendley called for
questions concerning the proposed budget. Boardmember Amis requested, due
to the budget restraints, more Board involvement with travel, advertising, etc.
City Attorney Scoff Foster read the resolution.
Resolution 98-009, approving the Annual Budget for fiscal year 1998/1999.
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 95-009
WHEREAS, the Paris Economic Development Corporation, in keeping with Section 8.03
of its bylaws, is obligated to have a proposed budget prepared, approved and delivered to the City
Manager of the City of Paris on or before June 30 of each year for inclusion in his annual budget
to be presented to the City Council in accordance with the Charter of the City of Paris; and,
WHEREAS, the budget attached hereto as Exhibit A is hereby presented by the Secretary-
Treasurer, and it is appropriate that such budget be approved; NOW THEREFORE;
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the budget attached hereto as Exhibit A be, and the same is hereby,
approved; and,
BE IT FURTHER RESOLVED, that the Secretary-Treasurer be, and he is hereby,
directed to deliver the budget attached hereto as Exhibit A to the City Manager of the City of
Paris for inclusion in his annual budget to be presented to the City Council in accordance with the
Charter of the City of Paris.
PASSED AND ADOPTED this 29th day of June, 1998.
Curtis Fendley, President
ATTEST:
Richard M. Amis, Secretary-Treasurer
APPROVED AS TO FORM:
Scott P. Foster, City Attorney
369
PARIS E,.,ONOMIC DEVELOPMENT CORPORATION
1998-1999
BUDGET
Acct # Description Actual Projected Budget
'96-'97 '97-'98 '98-'99
0001 New Industry Projects 1,300 3,500
Panda 300,000
Model Building 5,000
Babcock & Wilcox 500,000
BITCO 98,113 282,458
Exide 20,000
PIF 50,000
0002 Existing Industry Projects
Campbell Soup Co. 300,000
Precision Printing & Pkg. 460,000
We Pack 250,000
Cox Field 213,500
SUB TOTAL $312;913 $360,958 $1,810,000
1001 Office Equipment 250
0201 Office Supplies 9 3,051 3,000
0202 Postage 125 5,000 5,000
SUB TOTAL $134 $8,301 $8,000
0301 Communications 1,200 1,200
0305 Special Services Fees/Consultants 4,216 25,910 0
0306 Travel 285 12,855 10,500
0307 Subscriptions 396 500
0310 Miscellaneous 429 2,899 0
0311 Associations 65 20,787 14,000
0315 Promotional/Advertising 89,949 79,000 0
0349 City Services 47,232 3,800
0350 Compensation - Director 25,268 28,980 . 30,500
0351 Compensation - Asst. Director 16,100 36,750 38,500
SUB TOTAL $183,544 $208,777 $99,000
0610 Reference Materials 1,765 2,000
0610-11 Contingency 883 0
SUB TOTAL $0 $2,648 $2,000
TOTAL EXPENDITURES $496,591 $580,684 $1,919,000
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After discussion, Boardmember Dick Amis made a motion, seconded by
Boardmember Leon Williams, that this resolution be adopted and the Board voted
unanimously to adopt the resolution.
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
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 95-010
WHEREAS, the Paris Economic Development Corporation (PEDC) did heretofore, on
the 29th day of June, 1998, in Resolution No. 98-008, authorize the initiation of the process of
issuing approximately $4,000,000.00 in Sales Tax Revenue Bonds, Series 1998; retain Southwest
Securities as bond counsel for the same; request the City Attorney to procure bond counsel for
the same; and, in the alternative, authorize the seeking of financing in a means that best suits the
PEDC's needs; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 29th day of June,
1998, by motion reflected in the minutes, approve said PEDC Resolution No. 98-008; and,
WHEREAS, the PEDC deems it to be in its best interest to borrow said $4,000,000.00
from a local financial institution or institutions; and,
WHEREAS, said note shall bear interest in an amount not to exceed seven percent (7%)
per annum, and shall be payable to the financial institution or institutions in two hundred forty
(240) equal monthly installments of $38,333.32; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the PEDC borrow $4,000,000.00 from a local financial institution or
institutions; and,
BE IT FURTHER RESOLVED, that the President, Curtis Fendley, be, and he is hereby,
authorized and directed to execute, on behalf of the PEDC, a loan agreement and any and all
documents necessary to finalize the same and bind the PEDC thereto, with the forms of all such
documents being first approved by the City Attorney, Scott P. Foster; and,
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BE IT FURTHER RESOLVED, that the PEDC does hereby pledge its one-quarter (1/4)
cent economic development sales tax to the repayment of said loan; and,
__ BE IT FURTHER RESOLVED, that said note shall bear interest in.an amount not to
exceed seven percent (7%) per annum, and shall be payable to the financial institution or
institutions in two hundred forty (240) equal monthly installments of $38,333.32.
PASSED AND ADOPTED this 9th day of July, 1998.
Curtis Fendley, President
Barney Bray,III, Vice-President
Richard M. Amis, Secretary-Treasurer
Leon Williams, Director
Michael R. Rhodes, Director
ATTEST:
Richard M. Amis, Secretary-Treasurer
APPROVED AS TO FORM:
Scott P. Foster, City Attorney
372
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 98-010-A
WHEREAS, the Paris Economic Development Corporation (PEDC) did heretofore, on
the 29th day of June, 1998, in Resolution No. 98-008, authorize the initiation of the process of
issuing approximately $4,000,000.00 in Sales Tax Revenue Bonds, Series 1998; retain Southwest
Securities as bond counsel for the same; request the City Attorney to procure bond counsel for
the same; and, in the alternative, authorize the seeking of financing in a means that best suits the
PEDC's needs; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 29th day of June,
1998, by motion reflected in the minutes, approve said PEDC Resolution No. 98-008; and,
WHEREAS, the PEDC deems it to be in its best interest to borrow said $4,000,000.00
from a local financial institution or institutions; and,
WHEREAS, said note shall bear interest in an amount not to exceed seven percent (7 %)
per annum, and shall be payable to the financial institution or institutions over a five (5) year
period based on a twenty (20) year amortization schedule; and,
WHEREAS, in the interest of time, it is deemed appropriate that this resolution be
executed in accordance with Section 5.06 of the Bylaws of the Paris Economic Development
Corporation; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the PEDC borrow $4,000,000.00 from a local financial institution or
institutions; and,
BE IT FURTHER RESOLVED, that the President, Curtis Fendley, be, and he is hereby,
authorized and directed to execute, on behalf of the PEDC, a loan agreement and any and all
documents necessary to finalize the same and bind the PEDC thereto, with the forms of all such
documents being first approved by the City Attorney, Scott P. Foster; and,
BE IT FURTHER RESOLVED, that the PEDC does hereby pledge its one-quarter (1/4)
cent economic development sales tax to the repayment of said loan; and,
BE IT FURTHER RESOLVED, that said note shall bear interest in an amount not to
exceed seven percent (7%) per annum, and shall be payable to the financial institution or
institutions over a five (5) year period based on a twenty (20) year amortization schedule; and,
BE IT FURTHER RESOLVED, that this Resolution be executed in accordance with
Section 5.06 of the Bylaws of the Paris Economic Development Corporation.
PASSED AND ADOPTED this 10th day of July, 1998.
· Curtis Fendley, President
Barney Bray, III, Vice President
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Ridhard M. Amis, Secretary-Treasurer
Leon Williams, Director
Michael R. Rhodes, Director
ATTEST:
Richard M. Amis, Secretary-Treasurer
APPROVED AS TO FORM:
Scott P. Foster, City Attorney
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 98-011-A
WHEREAS, the Paris Economic Development Corporation (PEDC) did heretofore, on
the 10th day of July, 1998, in Resolution No. 98-010, authorize the process of borrowing
approximately $4,000,000.00 from local lending institutions; and
WHEREAS, the City Council of tile City of Paris did heretofore, on tile 13th day of July,
1998, by Resolution, approve said PEDC Resolution No. 98-010; and,
WHEREAS, the Resolution adopted by the PEDC on July 10, 1998, including the
documents (substantially in the form attached hereto as Exhibit A) securing the Sales Tax Loan
from Liberty National Bank in the amount of $4,000,000 for this project to be used for the
purpose of loaning monies to Paris Packaging, Inc., which is hereby approved, will be applied
to the purchase of the Precision Printing Plant, which plant would be closed unless this acquisition
is accomplished and that this (the "Project") is for the specific purpose of the promotion and
encouragement of employment and the public welfare.
WHEREAS, the City of Paris further approves this Project and finds that tile Sales Tax
Loan of $4,000,000 with tile proceeds to be loaned to Paris Packaging, Inc. is in furtherance of
the purpose of Article 5190.6, Section 4A, V.A.T.C.S. for the promotion of development and
expansion of manufacturing and industrial facilities for the benefit of tile City of Paris.
WHEREAS, in the interest of tirne, it is deemed appropriate that this resolution be
executed in accordance with Section 5.06 of the Bylaws of tile Paris Economic Development
Corporation;
NOW, THEREFORE,
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BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the PEDC lend $4,000,000.00 to Paris Packaging, Inc.; and,
BE IT FURTHER RESOLVED, that the President, Curtis Fendley, be, and he is hereby,
authorized and directed to execute, on behalf of the PEDC, a loan contract and any and all
documents necessary to finalize the same and bind the PEDC thereto, in the form attached hereto
as Exhibit "A" and incorporated herein; and
BE IT FURTHER RESOLVED, that said note shall bear interest in an amount not to
exceed seven percent (7%) per annum, and shall be payable to the financial institution or
institutions over a five (5) year period based on a twenty (20) year amortization schedule; and,
BE IT FURTHER RESOLVED, that this Resolution be executed in accordance with
Section 5.06 of the Bylaws of the Paris Economic Development Corporation.
PASSED AND ADOPTED this 13th day of July, 1998.
Curtis Fendley, President
Barney Bray, III, Vice-President
Richard M. Amis, Secretary-Treasurer
Leon Williams, Director
Michael R Rhodes, Director
ATTEST:
Richard M. Amis, Secretary-Treasurer
APPROVED AS TO FORM:
Scott P. Foster, City Attorney