1999-07-07-PEDC 468
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION
July 7, 1999
The Paris Economic Development Corporation met in a special meeting on
Wednesday, July 7, 1999, at 4:00 P.M., in the City Council Chambers, City Hall,
Paris, Texas. President Mike Rhodes called the meeting to order with the
following boardmembers present: Jay Guest and Dick Amis. Also, present were
ex-officio boardmembers Mayor Charles Neeley, Chamber President George
Struve, City Manager Michael E. Malone, and Executive Director Gary Vest.
President Rhodes stated that the purpose of this special meeting was
consideration of and action authorizing the execution of an Incentive Agreement
with Mark Cunningham for warehouse distribution facilities. Mr. Rhodes asked
Mr. Vest to discuss this item.
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Mr. Vest indicated on overhead projector the Northwest Industrial Site currently
owned by Paris Industrial Foundation which consists of 143 acres, and stated
that the P.E.D.C. Board has sixteen acres adjacent to this site. He said this area
-- is our next proposed industrial development site. He said that it currently
belongs to the Paris Industrial Foundation, and we are in the process of obtaining
a clear title in order that development can begin in a Master Plan Industrial Park.
He said currently there is a street that P.E.D.C. resurfaced several years ago for T
& K Machine due to the street's condition. Mr. Vest said that the proposal is take
five (5) acres out of this acreage for Ms. Vaughan's import business. He said that
Ms. Vaughan had spoken with Mr. Mark Cunningham concerning construction of
a new warehouse distribution facility. Mr. Vest stated that he had shown Mr.
Cunningham the property, and Mr. Cunningham had indicated that the five acres
area would work well for this particular project.. Mr. Vest provided the Board with
copies of the recent survey. Mr. Vest said that a street extension of approximately
600 ft. will be needed with an cost estimate of approximately $50,000.00. Mr. Vest
said that this project will include a transfer title of this five (5) acres with a
reversionary clause, that if Mr. Cunningham does not build the building within
one year from this date then it will revert back to P.E.D.C. Mr. Vest said that the
donation this five (5) acres to Mark Cunningham will put the acreage back on the
tax roll along with the new building.
City Engineer Earl Smith discussed the location of this particular building on the
five acres.
-- Mr. Vest said that there are approximately thirty people employed by this
company and they work in packaging and assembly. Mr. Vest discussed the bid
process in connection with the street. City Manager Michael Malone stated that it
will be a city street and, therefore, the city will inspect the street and the City
Engineer will be in charge of the construction of the street. After discussion, it
was consensus of the Board that the City Engineer Earl Smith would be in charge
of construction of the street. City Engineer Smith stated that the bid process
would take approximately six weeks to two months. Mr. Smith said that there
was a 30-car parking lot and a truck entrance to a dock that needs to be built
prior to the street construction. Mr. Smith said that the street would not be a'
curbed street. Mr. Smith provided copies to the Board of two proposed possible
methods of construction. After further discussion, it was the consensus of the
Board that City Engineer Earl Smith would construct the street, and Mr.
Cunningham would take care of the construction of the building, parking lot and
truck entrance.
Resolution No. 99-005, authorizing the execution of an Incentive Agreement with
Mark Cunningham for warehouse distribution facilities.
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 99-005
WHEREAS, the Paris Economic Development Corporation is a non-profit corporation
governed by the Development Corporation Act of 1979 (the Act) and was established for the
purposes of promoting, assisting, and enhancing economic development; and,
WHEREAS, the means and measures attthorized by the Act and the assistance provided
therein with respect to financing are Ibund to be in the public interest and serve a public purpose
of the state in promoting the welfare of the citizens of the state economically by the securing and
retaining of business enterprises and the resulting maintenance ofa higher level of employment,
economic activity, and stability; and,
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WHEREAS, in keeping with the purposes for which the legislature enacted the
Development Corporation Act of 1979 and the purposes for which the voters of the City of Paris
established the Paris Economic Development Corporation, it is deemed appropriate that an
incentive agreement be entered into with Mark Cunningham; and,
WHEREAS, the forms of the Incentive Agreement, attached hereto :ts Exhibit A, and the
General Warranty Deed, attached hereto as Exhibit B, should, in all things, be approved, and the
President, Michael R. Rhodes, should be authorized to execute the same; NOW, THEREFORE,
BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT
CORPORATION, that the form of the Incentive Agreement with Mark Cunningham, attached
hereto as Exhibit, be, and the same is hereby, approved; and,
BE IT FURTHER RESOLVED, that the form of the General Warranty Deed to Mark
Cunningham, attached hereto as Exhibit B, be, and the same is hereby, approved; and,
BE IT FURTItER RESOLVED, that the P,'esident, Michael R. Rhodes, be, and he is
hereby, authorized and directed to execute, on behalf of the Paris Economic Development
Corporation, the Incentive Agreement, under the terms and conditions and in the form shown in
Exhibit A, attached hereto.
PASSED AND ADOPTED this 7th day of July, 1999.
President
ATTEST:
Secretary-Treasurer
APPROVED AS TO FORM:
James Corley Henderson,
Acting City Attorney
INCENTIVE AGREEMENT
STATE OF TEXAS )
) KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR )
THAT, the PARIS ECONOMIC DEVELOPMENT CORPORATION, acting by and through
its President, Michael R. Rhodes, duly authorized, hereinafter called PEDC, and MARK
CUNNINGHAM, hereinafter called CUNNINGHAM, do hereby contract and agree as follows:
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1. CUNNINGHAM agrees to construct a thirty thousand (30,000) square foot
warehouse distribution facility on the 5.739 acre tract of land described in Exhibit A,
attached hereto.
2. PEDC agrees to transfer ownership of said 5.739 acre tract of land described in
Exhibit A, attached hereto, to CUNNlNGHAM within thirty (30) days of the date of
this Agreement, said transfer to be subject to the condition of reversion set out below.
3. PEDC agrees to extend Park Street as shown in the engineering plans attached hereto
as Exhibit B.
4. In the event that CUNNINGHAM fails to complete construction of the warehouse
distribution facility described herein within one (1) year of the date of this Agreement,
ownership of the 5.739 acre tract of land shall revert back to PEDC.
EXECUTED on this 7th day of July, 1999.
PARIS ECONOMIC DEVELOPMENT
CORPORATION
By:
Michael R. Rhodes, President
MARK CUNNINGHAM
Mark Cnnningham
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, tile undersigned authority, on this day personally appeared MICHAEL R.
RHODES, President of the Paris Economic Development Corporation, Paris, Texas, known to me
to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that
he executed the same for the purposes and consideration therein expressed and in the capacity therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 7th day of July, 1999.
Notary Public, State of Texas
STATE OF TEXAS )
-- )
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared MARK
CUNNINGHAM, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed the same for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of July, 1999.
Notary Public, State of Texas
47'2
GENERAL WARRANTY DEED
STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR §
That the PARIS ECONOMIC DEVELOPMENT CORPORATION, of the County of Lamar,
State of Texas, acting by and through its President, Michael R. Rhodes, duly authorized by
Resolution No. 99-005, for and in consideration of the sum often and no/100 Dollars ($10.00) cash
and other good and valuable consideration to it in hand paid by MARK CUNNINGHAM, the receipt
and sufficiency of which is hereby acknowledged; have Granted, Sold, and Conveyed, and by these
presents do Grant, Sell, and Convey unto the said MARK CUNNINGHAM, of the County of Lamar,
State of Texas, whose mailing address is 6220 Lamar Avenue, Paris, Texas 75462, subject to the
reservations and exceptions hereinafter made and with the restrictions and upon the covenants below
stated; all that certain tract or parcel of land situated in Lamar County, Texas, and described as
fbllows:
Situated within the Corporate Limits of the City of Paris, County of Lamar,
and State of Texas, a part of the John Herrington Survey #436, and being a part of
a called 16.66 acre tract of land conveyed the PEDC by deed recorded in Volume
494, Page 300, Real Property Records, Lamar County, Texas, said 16.66 acre tract
being originally conveyed out of a called 196.7 acm tract ofland conveyed the Paris,
Texas Industrial Foundation, Inc., by deed recorded in Volume 360, Page 320, Deed
Records, Lamar County, Texas, and being more particularly described as follows:
BEGINNING at an iron pin(s) for corner at the Northeast corner of this tract,
said point being South 0 Deg. 19 Min. 27 Sec. East a distance of 100.22 feet to an
iron pin (f) at an el corner of said 196.7 acre tract, and South 89 Deg. 47 Min. 57 Sec.
West a distance of 50 feet from an iron pin (f) at the Northeast corner of said 16.66
acre tract;
THENCE South 0 Deg. 08 Min. 48 Sec. West along the West Boundary Line
of a 50-foot ROW Easement a distance of 500 feet to an iron pin (s) for corner at the
Southeast corner of this tract;
THENCE South 89 Deg. 47 Min. 57 Sec. West a distance of 500 feet to an
iron pin (s) for comer at the Southwest corner of this tract;
THENCE North 0 Deg. 08 Min. 48 Sec. East a distance of 500 feet to an iron
pin (s) for corner at the Northwest corner of this tract;
THENCE North 89 Deg. 47 Min. 57 Sec. East a distance of 500 feet to the
place of beginning and containing 5.739 acres of land.
TO HAVE AND TO HOLD the above described premises, together with all and singular,
the rights and appurtenances thereto in anywise belonging unto the said MARK CUNNINGHAM,
his heirs and assigns forever; and it does hereby bind itself, its successors and assigns, to Warrant and
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Forever Defend all ,and singular tile said premises unto the said MARK CUNNINGHAM, Iris heirs
and assigns, against every person whomsoever lawfully claiming, or to claim the same, or any part
thereof; title to the same.
The further covenant, consideration and condition is that by July 7, 2000, grantee,
MARK CUNNINGHAM, shall cause to be constructed to substantial completion, as determined by
the Executive Director of the grantor, PARIS ECONOMIC DEVELOPMENT CORPORATION,
a warehouse distribution facility on the subject parcel of land. This covenant, consideration and
condition shall be binding upon grantee, his heirs, legal representatives and assigns until July 7, 2000,
and in case of any violation thereof the title to said premises shall, without entry or suit, immediately
revert to and vest in the grantor herein, his heirs or assigns, and the conveyance hereunder shall be
null and void, and grantor, his beirs or assigns shall be entitled to immediate possession of such
premises and the improvements thereon; and no act or omission upon the part of grantor herein, his
-- heirs or assigns, shall be a waiver of the operation or enforcement of such condition, provided,
however, that such reversion shall not affect any mortgage or lien which may be in good faith existing
upon said premises or upon any improvements thereon. Upon the snbstantial completion of the
warehouse distribution faccility, if same is accomplished by July 7, 2000, then all of the above
described real property shall vest in grantee in fee simple absolute.
WITNESS my hand at Paris, Texas, this 7th day of July, 1999.
Michael R. Rhodes, President
STATE OF TEXAS }
COUNTY OF LAMAR }
BEFORE ME, the undersigned authority, on this day personally appeared Michael R.
Rhodes, President of the Paris Economic Development Corporation, known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the
same for the pnrposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 7th day of July, 1999.
Notary Public, State of Texas
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After discussion by the Board, Boardmember Dick Amis made a motion,
seconded by Boardmember Jay Guest that this resolution be adopted, and the
Board voted unanimously to adopt the resolution.
Finance Director Anderson stated at the last meeting that the Board requested
information as to additional borrowing capacity of the P.E.D.C. and he discussed
this information with the Board.
President Rhodes asked if there was any other business and there being none he
declared the board meeting adjourned.
President Michael Rhodes
ATTEST:
Assistant City Clerk, Barbara Denny