1998-101-RES WHEREAS, PARIS ECONOMIC DEVELOPMENT CORPORATION (PEDC) DID HERETOFORE
RESOLUTION NO. 98-101
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
PEDe'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 did heretofore, on the 10th day of July, 1998, in Resolution No.
98-010, passed and adopted in accordance with Section 5.06 of the Bylaws of the PEDC,
authorize the borrowing of $4,000,000.00 from a local financial institution or institutions;
authorize the President of the PEDC to execute 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, pledge its one-quarter (1/4) cent
economic development sales tax to the repayment of said loan, with said note bearing interest in
an amount not to exceed seven percent (7 %) per annum and being payable to the financial
institution or institutions over a five (5) year period based on a twenty (20) year amortization
schedule; and,
WHEREAS, it is deemed appropriate that the City Council approve said Resolution No.
98-010; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL O.~ THE CITY OF PARIS, that:
1. 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.
2. The City of Paris further approves this Project and finds that the Sales Tax Loan of
$4,000,000 with the 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 the City of Paris.
3. The City of Paris, in addition, approves the Commitment Letter between PEDC and Paris
Packaging, Inc. (attached hereto as Exhibit B), and does hereby affirm that the City has,
through its control of the PEDC, sufficient power to control this Project and to insure that
Paris Packaging, Inc. will acquire and operate the Project as long as the loan is
outstanding.
4. The officers and employees of the City of Paris are hereby authorized and directed to do
any and all things necessary in order to accomplish the execution of the loan.
5. Resolution No. 98-010 of the Paris Economic Development Corporation be, and the same
is hereby, approved.
PASSED AND ADOPTED this 13th day of July, 1998.
ATTEST:
'w~~'~~~
Mattie Cunningham, City Clerk
APPROVE~ AS TO FORM: ~
q~/?~
Scott P. Foster, City Attorney
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 98-010
. \YHEREAS, 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
PEDe'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,
\YHEREAS, 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 FlJRTHER RESOLVED, that this Resolution be executed in accordance with
Section 5.06 of the Bylaws of the Paris Economic Development Corporation.
EXHIBIT A
PASSED AND ADOPTED this 10th day of July
Barney Bray, III, Vice-President
ard M. Amis, Secretary-Treasurer
Leon Williams, Director
Michael R. Rhodes, Director
ATTEST:
~~/
ard M. Amis, Secretary-Treasurer
APPROVED AS TO FORM:
Scott P. Foster, City Attorney
Paris Economic
Development Corporation
July 9, 1998
Mr. Eldon Fulgham and Mr. David Hickerson
Paris Packaging, Inc.
800 West Center Street
Paris, Texas 75460
Delivered via facsimile: 800-527-3909
Dear Mr. Fulgham and Mr. Hickerson:
,I
I
This document is to confirm to you the commitment of the
Paris Economic Development Corporation (PEDC) to loan Paris
Packaging, Inc. $4,000,000.00 for the acquisition of the Precision
Printing & Packaging, Inc. facility here in Paris, Texas. As you can
see from the attached PEDC Resolution, PEDC has authorized the
issuance of this debt through a local bank consortium to assist Paris
Packaging, Inc. All loan documents are being prepared as soon as
possible by J. D. McLaughlin of McLaughlin, Hutchison & Hunt.
The terms and conditions of the note will be detailed in the loan
documents. A summary of those conditions are a $4,000,000.00 loan
at a 7% interest rate paid on a 20 year amortization with a balloon or
maturity at five years.
,.
USincerely y?urs,
. ,
~
.
Curtis Fendley
President
~
EXHIBIT B
, I
1651 Clarksville Street . Paris, Texas 75460
(903) 784-2501 . I-S00-PARIS, TX . fax (903) 7S4-2503