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03-B PEDC Mtg Min 03-08-06 Board Minutes for the Paris Economic Development Corporation March 8, 2006 4:00 P.M. Board Members Present: Sims Norment Dick Severson Rodney Bass Board Members Absent: Mike Dunn Glen Bawcum Ex-officio Members Present: Brady Fisher Curtis Fendley Jamie Fussell Staff Present: Gary Vest Chad Madding Phil Smith Gene Anderson Guest: Sims Norment called the meeting to order at 4:02 p.m. The minutes of the February, 2006 meeting were approved on a motion by Dick Severson and a second by Rodney Bass. The financial report was presented by Gene Anderson for the month ending January 28, 2006. Gene stated that all is well and our collections are up from last year. Gene answered questions about the audit finding. The PEDC was sited for having too much money in one bank. Gene said that when the state sends our tax collections they are deposited into one bank and it is there until Mr. Anderson distributes to the other banks. The financial report was approved on a motion by Dick Severson and a second by Rodney Bass. Gary spoke about the C-Tech Inc. Project and the approval by PEDC of the subordination document to financing provided by Stuart Ackerberg and Bremer Bank N.A. of Minneapolis, Minnesota. Phil Smith talked about the reverter of land if the C-Tech company fails. The PEDC will be 3rd in the subordination under Bremer Bank and Stuart Ackerberg (Paris Holdings LLC). There were requests to change the dates of the payback periods but Gary Vest changed them back to the original dates. The Paris Holdings LLC is using Bremer Bank to help .. - r PEDC Minutes March 8, 2006 Page 2 in securing the $1,100,000 loan to build the C- Tech building. To receive the loan Bremer Bank needs to be the listed first in the right of reverter. C- Tech will lease the building from Paris Holdings LLC for 17 years. If for some reason C- Tech needs to leave the building the company must stay in the county. The group discussed the agreement where Bremer Bank will be listed first in the lien, Paris Holdings LLC will be second and the PEDC will be listed third. There will be no release of liability on PEDC's part. The bank wants to close on Friday if the board will approve this amendment. Rodney Bass wanted more time to review the incentive agreement change because this was the first time he had seen the document. No action was taken. The board decided to proceed with the other items on the agenda and a recess will be taken until Thursday, March 9th at 1:30 PM so that more time can be taken to read over the C- Tech amendment. Phil discussed the tax abehnent for Campbell's Soup. This project will create 28 new jobs and will be a $17,700,000 project. Campbell's has asked for 10 years at 100%. The board agreed with the tax abatement committee in giving them an 100% abatement for 3 years and 20% less for the next 4 years. The abatement was approved on a motion by Rodney Bass and a second by Dick Severson. We-Pack wants to start construction on a new 150,000 SF building behind their existing facility. They are asking for and abatement for only 150,000 SF building due to the fact that this is still in the planning phase. This will not add new jobs but is a $3,150,000 project. The tax abatement committee recommended that the PEDC give We-Pack and 80% abatement for 3 years and 20% less each year after that for the next 4 years. This was approved on a motion by Dick Severson and a second by Rodney Bass. Project Hurricane will not receive anything from the Governor's Office due to the fact that they feel this is a start up company. The owners have been notified and will get back to us on their decision. Gary talked about giving the company more money up front to help them in getting their loan. Sims Norment said he does not want this project to leave and said we should do what ever we can to get this project. Gary said the PEDC has the money to do this but it will put us back some. Gary will talk with the company and we will wait to hear back from them before taking any action. PEDC Minutes March 8, 2006 Page 3 Gary talked about a request from Spencer's Wholesale Food Distribution on purchasing land at our industrial park. The board agreed to sell the land for $30,000 an acre. This was approved on a motion by Rodney Bass and a second by Dick Severson. The PEDC audit performed by McClanahan & Holmes, LLC, for the fiscal year ending on September 30, 2005 was approved on a motion by Rodney Bass and a second by Dick Severson. The director's report was given by Gary Vest. Kay O'Dell, from the Workforce Board has asked the PEDC to help in a matching grant for job training at Campbell's Soup. The exact amount is not known at this time. Gary will place this on the agenda when more information is known. PJC is applying for a skills development loan. TxDOT is asking for assistance in creating a deceleration lane in front of the Campbell's plant. TxDOT will run the numbers on the project and get back to the PEDC with the exact cost. There have been several close calls in front of the plant in the past and they feel an extra lane will prevent accidents. Mike Dunn is involved in this project as well. Project Feeder is on hold due to the owner's birth of twins. Project Verde is still in the works. Gary and Chad will meet with Mike Morrow and area soy bean growers to discuss the possibility of creating a co-op and a soy bean crushing facility. Gary talked about We-Pack's extension of the Enterprise Project and offering this service to Campbell's as well. The PEDC staff attended the NETMOB meeting in February. Gary Vest, Don Wall, Bobby Littlefield and Mike Blackerburn met with the Mt. Pleasant city manager to discussed pass through tolling for SH271. In February the staff also attended the ARCIT (Association for Rural Cities in Texas) meeting. We discussed their legislative agenda for the coming year. Gary discussed the La Quinta article in the Paris News and the fact that the company has never contacted the PEDC about assistance in building a new hotel in the Paris area. Gary met with the hotel owners association and they said this hotel would be bad for the city and they do not want a permit given for them to build. Gary brought up the Economic Development Survey that has been given out to local industries; we will be collecting them and using them along with the city's survey to evaluate the business environment of the area. The meeting was recessed until Thursday, March 9, 2006 at 1:30 PM. PEDe Minutes March 8, 2006 Page 4 The meeting was reconvened at 1:36 PM on Thursday, March 9th. The board took time to discuss the changes to the C-Tech Amendment. The board agreed to move the dates back to the original dates and accept the other changes. This was approved on a motion by Rodney Bass and a second by Dick Severson. There was no chairman's report given. With no further business to come before the Board, the meeting adjourned at 1:40 p.m. Sims Norment stayed to sign the documents. R4Z/::a< / Chad Madding ~ Assistant Director