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24 Rural Business Enterprise GrantCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: March 4, 2008 Community Lisa A. Wright, Director Council Date: Development 24 March 10, 2008 RECOMMENDED MOTION: Approve a resolution approving submission of an application for $100,000.00 of Rural Business Enterprise Grant - Revolving Loan Fund (RBEG-RLF) funds to purchase a commercial building in order to allow a local business to expand its operation and hire additional employees. POLICY ISSUE(S~: BACKGROUND: The City of Paris is the recipient of $200,000.00 in Rural Business Enterprise Grant - Revolving Loan Fund (RBEG-RLF) funds to assist small and emerging businesses. In 2003, the City of Pans provided a $100,000.00 loan to Charles Fulbright to construct a restaurant, leaving a remaining balance of $100,000.00 funds available to the City. Kenneth White, d.b.a. White's Flooring Depot, contacted the City to inquire about any possible assistance to help him purchase a new building in order to expand his operation and hire additional employees. He and his financial institution were made aware of the RLF funds and are now formally requesting assistance to help with the purchase of the building located at 2030 N. Main Street. The expansion wi11 allow Mr. White to add two (2) additional employees to his payroll. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Loan summary and required submittal information to the USDA. ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $100,000.00 ❑ Department Report ~ Resolution Budgeted Amt. $100,000.00 ❑ Presentation ❑ Ordinance yTD Actual $ ❑ Public Hearing ❑ Other Acct. Name Revolving Loan Fund Acct. Number FISCAL NOTES: These grant funds are repayable to the City under the terms and condirions stated on the loan summary. REVIEWED AND APPROVED BY: ,gJJ Administration City Clerk ~ Community Development ❑ EMS/IT ❑ Finance ❑ Fire Munici al Court Le al Libra Police En . Public Works Utilities City of Paris Revised 2/04/08 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING SUBMISSION OF AN APPLICATION FOR $100,000.00 OF RURAL BUSINESS ENTERPRISE GRANT-REVOLVING LOAN FUND (RBEG-RLF) FUNDS TO PURCHASE A COMMERCIAL BUILDING IN ORDER FOR A LOCAL BUSINESS TO EXPAND ITS OPERATION; MAHING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris did heretofore, on the 6th day of August, 1998, in Resolution No. 98-104, authorize an application to be made to the United States Department of Agriculture, Rural Economic and Community Development Division, for a Revolving Loan Fund grant; and, WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of June, 2000, in Resolution No. 2000-076, authorize the acceptance of a Rural Business Enterprise Grant - Revolving Loan Fund (RBEG-RLF) to fund small and emerging businesses; and, WHEREAS, Kenneth White, d.b.a. White's Flooring Depot, has requested approval to submit an application to the Rural Economic and Community Development Division for RBEG- RLF funds in the amount of $100,000.00 to assist with the purchase of property at 2030 N. Main Street in order to expand his operation and add employees; and, WHEREAS, it is deemed to be in the best interests of the citizens of Paris that the City of Paris approve submission of Mr. White's application and continue its efforts to fund small and emerging businesses in the city of Paris; and, WHEREAS, the forms of the Request for Funding and the Request for Environmental Information, attached hereto as Exhibit A, should in all things be approved, and the City Manager should be authorized to execute the same; and, WHEREAS, the City Council desires to authorize the Mayor, City Manager, and appropriate City staff to accept and implement said funding (if same is received) without further action of City Council; and,; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section l. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the submission of an application to the Rural Economic and Community Development Division from Kenneth White, d.b.a. White's Flooring Depot, for $100,000.00 of Rural Business Enterprise Grant-Revolving Loan Fund (RBEG-RLF) funds to purchase a commercial building at 2030 N. Main Street in order to expand his operation and add employees be, and the same is hereby, approved. Section 3. That the City Manager be, and he is hereby, authorized and directed to execute, on behalf of the City of Paris, the Request for Funding and the Request for Environmental Information, under the terms and conditions and in forms shown in Exhibit A, attached hereto. Section 4. That the City Manager, the Director of Community Development, and any other appropriate City officials are hereby authorized to execute any and all necessary documents incident to the funding application approved herein. Section 5. That the Mayor, City Manager, Director of Community Development, and the Finance Director be authorized and directed to execute, on behalf of the City of Paris, any and all documents necessary for acceptance and implementation of said funding upon notice of award thereof by the Rural Economic and Community Development Division, under the terms and conditions and in the forms approved by the City Attorney, and to proceed with use of said funds upon receipt thereof for the purposes stated herein and in accordance with the grant conditions. Section 6. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this l Oth day of March, 2008. Jesse James Freelen, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney xEVOLVnvc Loalv FUxn LOAN SUMMARY BORROWER; Whites Flooring Depot of Paris CO-BORROWER; Kenneth White ADDRESS; (new) 2030 North Main Street CITy; P a r i s STATE; BUSINESS; Custom floorin (was) 1131 NW Loop 286 Texas zip; 75460 TotalNceded;$ 200,000 purppse; Purchase building Owner; 80,000 12mos. workina capital Lender; 60,000 real estate GiLy; 60 p 000 real estate Lender; _Lamar National Bank Terms; 7.75% 5 yrs. amortized over 15 yrs. Lien Position; f i r s t ' Collateral; land, buildinq, contents, inventory LoanOfficer; Dick Severson, Executive V.P. CityTerms; 4.9% fixed, over 15 years Lien position; s econd Cp]]$teml; same as above Jobs Greated; 4 r e t a i n e d, 2 n ew Cost Per Job; 10 , 0 0 0 Recommendation: , roval; cityy consu.ttant ; Approval; ( ) City Manager Disapproval; ( ) isa proval ( ) Date 5-s. Date Comments: Buildinq appraised at $135,000, purchased for $120,000. _Business 1 year in operation. No tax return, Used 3 years personal tax returns +P/L and BSe E M I ig I 7 A RLF NOTE INSTRUCTIONS Pursuant to our agreement and City Council approval, please have a Note and Deed of Trust developed based upon the following: Date:Marchl l, 2008 Property: 2030 North Main Street North Main Street Borrower: Kenneth White, dba Whites Flooring Depot of Paris Payee: City of Paris P.O. Box 9037 Paris, Texas 75461-9037 Trustee: Jesse James Freelen Mayor of Pazis Amount:$b0,000.00 Interest:4.90% fixed Repayment Term: 15 years Payment: $471.35 Security: Real Estate and improvements subordinated to Lamaz National Bank Please provide documents to City Attorney for review prior to loan closing. We look forward to assisting you in this financial arrangement in the near future. Sincerely Robert Jones, RLF Manager \ \ \ \ ~ , , March 11, 2008 Mr. Don Williams, Economic Development Specialist USDA-RECD 1809 Ferguson, Suite E Mount Pleasant, Texas 75455 Dear Mr. Williams: Subject: City of Paris RBEG Funds Enclosed please find USDA Form RD 1940-20 with all attachments. On March 10, 2008, Paris City Council approved a loan to Whites' Flooring to expand and add more full time jobs. With this application, the City completes the draw down of previously approved RBEG-RLF funds. If there are any questions, please notify me. Sincerely' Jesse James Freelen, Mayor of Paris enclosures c: file RBEG Trans Ltr P.O. BOX 9037 • PARIS, TEXAS 75461-9037 •(903) 785-7511 • FAX (903) 785-8519 USDA Posirion 3 FORM APPROVED Form RD 1940-20 OMB No. 0575-0094 (Rev. 4-06) Name of Project REQUEST FOR ENVIRONMENTAL INFORMATTON City of Paris RECD/Rt,F Location Paris, Lamar County, TX item i a. rias a r eaerai, ~itate, or 1,oca1 Environmental lmpact 5tatement or Analysis been prepared for this project? ❑ Yes 0 No ❑ Copy attachad as E?CFHBIT I-A. lb. If "No." provide We information requested in Instructions as EXHIBIT I. Item 2. The State Historic Preservation Officer (SHPO) has been provided a detailed project description and has been reyuested to submit comments to the appropriate Rwal Development Office. 0 Yes ❑ No Date descrip6on submitted to SHPO Item 3. Are any o t e o owmg an uses or envuonment resources ett er to e a ected y the proposal or ocate "ith in or adjacent to the project site(s)? (Check appropriate box for every item of the following checklist). Yes No Uuknown Yes No Unknown 1. Industrial ❑ El ❑ 19. Dunes......................... ❑ 0 ❑ 2. Commercial IZI ❑ ❑ 20. Estuary ❑ 0 ❑ 3. Residential ❑ 0 ❑ 21. Wetlands............................. ❑ 0 ❑ 4. Agricultural ❑ 0 ❑ 22. Floodplain....................................... ❑ MV ❑ 5. Grazing ❑ ~ ❑ 23. Wilderness....................................... ❑ ~ ❑ (designated or proposed under 6. Mu► •ing, QUany•mg ❑ M ❑ the WildernessAct) 7. Forests. . ~ ~ ~ 24. Wild or Scenic River ❑ ~ ❑ (proposed or designated under the Wild 8. Recreational ❑ ~ ❑ and Scenic Rivers Ac t) 25. Historical, Archeologicai Sites........... ❑ ~ ❑ 9. Transportatian ❑ El ❑ (Listed on the National Regrster of Hlstoric Places or which may be 10. Parks ❑ vM ❑ elfgible for listing) ll. Hospital ❑ ~ ❑ 26. Critical Habitats......... ❑ ED ❑ (endrnrgered/threatewed species) 12. Schools ❑ F, 1 ❑ 27. Wildlife........................................... ❑ 0 ❑ 13. Open spaces ❑ f-v-l ❑ 28. Air uali Q ty ❑ ~ ❑ 14. Aquifer Recharge Area ❑ m ❑ 29. Solid Waste Management ❑ P1 ❑ 15. Steep 3lopes ❑ ~ ❑ 30. EnergY SupPlies............................... ❑ ❑ 16. Wildlife Refuge ❑ 0 ❑ 31. Natural Laadv►ark........ ❑ ~ ❑ 17. Shore]ine ❑ ~ ❑ (Listed on Natronal Registry of Natural Gandmarks) 18. Beaches ❑ r±1 ❑ 32. Coastal Barrier Resources System..... ❑ 0 ❑ Item 4. Are any facilities under your ownership, lease, or supervision to be utilized in the aceomplishment of this project, either listed or under consideration for listing an the Environmental Protection Agency 's List of Violating Facilities7 ❑ Yes 0 No (Date) Signed: (Applicm#J Mayor, City of Paris (7'itle) According to the Paperwork lteduction ,4ct of 1993, an agency may not conducr or sponsor, and a person is not requrred to respond to, a collection of information unless it displays a valid OMB control number. The valid OMB control numberfor this informqtron collections is 0375-0094. The dme required to complete thrs information collection rs estimated to average 6 to 10 hours per resp onse, i»cludirrg the dme for reviewing rnslructions, aearching existing data sowces, gatherirtg and maixtafning the data needed, and campleting and reviewing the collection of infnrmation. (1) Primary Beneficiaries The beneficiary of this RECD project will be the Whites Flooring Depot of Paris. This business will relocate from the outskirts of Paris to 2030 Mai_n Street. They will purchase and occupy a metal free standing building on slab. This building is completely finished inside and has all working utilities. This area is developed and commercial in it's zoning and use. This building is flanked by commercial buildings on either side. Whites Flooring is involved in the construction of flooring of all kind. This includes carpet, wood floors, ceramic tile and all custom applications. Besides the owners, this business provides full time jobs to 4 employees. This move will not only insure their continues employment, but add at least two rriore jobs plus work for a half dozen contractor installers. RECD funds, matched by a loan from the Lamar National Bank, will be used to purchase the building located at 2030 Main Street. The owner will provide working capital for the project. (2) Axea Description (a) The primary beneficiary will locate in a fully developed, commercial area. This free standing building in located facing Main Street, about two miles north of the square. The building fronts to a paved street with curb and gutter. The terrain is flat with surface water drainage controlled by City stornl sewer facilities. The building is flanked by commercial operations as well as the building directly across Main Street. City utilities are provided to this area. (b) There will be no effects on air quality q Attached as Exhibit 1 Eghibit 1 1) USGS Map 2) FEMA Map 3) Site Photos 4) Soil 5urvey (n/a) 5) Aerial Photo ~ ~ J ~ ~ ~ ~ VI ~V~~\ ~ \ J ~~A t_ ° - ~ i ~ ~ ~ ~ o~ ~ ~ • - ~ I ~ • ~ 3c~ { ~ ~i-~ , o ~ \ ~ ~ ' ~ ~ ~ , ♦ • ' ~ ~ ' ~ ' - ~ ; ~ ` I - - ~ ' ~ o ~ r , > o ~ ~ '~I y ~ ` _ i ~ ~ --'I ~ I.\~; _ - ~ ~ ~ Ei ~~J I _LJ E G.. ~T 1 J, y$ ~ / Z ' _ ~ ~ ~ J I_ ~ _ Qm ~ i ~I _ / i lb •j N12! \ ---J ~ ~ / o ' C. A _ _ ~ % ~,ay .o~ i • J~% , I,~- ~'J/ ~p / ~O ~I ~ ~ o' ~ li-' \ / / ~ ~ ~ ~ ~ ~ ~ ~JL a ~ _ ~ ~ 3 ~ 15 I H18 r i ~ ■ - ~a ~ 35 1S ' • % ~ ~ ~ ~ ~ I ~ ` ~ I~ L ~ _ ~ j ~ o . ~ R ",r ~ W - ~ ~ - ~ ~ \ ~ : . i. N ~ ~ ~ ~ - ~ ~ . ~ - ~ ~ ~ ~ e• - ~ - ~ _ l •~.a a. ~ . ❑ ~ l:. = ae _ s s,~ NIM > _ i n~ \ : ~ •o . ~ • c ~ ~ m . , ' 1 ~ ~ ~ MN ~ W ~ r+--~~ ) - \ / ~ / ~ "~L:" L/l7 ~ o ~~'Y•- MN i~ ~ r - I - F11 I ~ _ _ . ~ ~ ~ J ~ ~ ~ . ~ I x I I W i.... / ~ 550 r,% L~ ~ _ . le r . . . . c _ - ~ ~ ~ ' ~ ~ - m w rr ~ ~ ~~C j~~,~ ~ J~ I ~ ;,.y,, o~ i I : - ~ . i ~ ~ • ~ ~ ~ ~ . ~'O , . ( ~ / ~ ru.j y I~ . ~ ~ ' \ l,. I ~ ~ ~ J . ~ / ~ ' I o : j \ ~ J• i ~ ~L 1% , I i . m \ _J I~ p \ i~ t I osSO a ` ~ ~ \ ~I_ 0 L- ~ ~ - C') ~ r ~ 1`~~: lL~~` / \ • I r"'_ ^ 1 y y / , ' / I ^ I J P I~p,7 )V U O 'p 15~ I~~ • ' C ~j ~ ~ ~ ~ :vp~ -I' ~ , \ ~ ~ ~Ie i J~~ i ~'"~/i ~ ~ 9- J ~ ii~% 7~t ~ i ~i ~ ~ ~ 1 I _ . _ ~ jC..:...'....~ ~ L / /J ~ ~ • - j u 1 i.' _ ; G ~ i ~ d ~ r / r . i - 1 `y 55 o J 500 a / t - _I~~_~+~ ~ /Y •L~ .~D I,-7_,-~- . ~.I 0_ ri z'' ~ I I \V ` ' ~ ° ' v ~ - ~ i~ , , r ~ )~r~ - ° ~ ~ . ~ ~ ~ ~ ~ ~Ci~ , ~J~ ~~-7 ~ oss ( • ( ~ ~ ~ • (f Q I - -j---- Z~- ~ ~ [S:IGISIDWGSIAEItIALSlsids1864 306 I.sid] Scale I:I5760.441 ur.VTD V1PLt7Pr (13) Public Reaction Because of competitive sensitivity, the purchase of this building by Whites Flooring Depot is not widely known. Reaction of current customers at the out lying location has been very positive, (a) There have no objections to this project. This business represents the highest and best use of this building in the neighborhood. (b) No Public Hearing has been held. (c) There have been no newspaper articles or advertising regarding the purchase of this building. (15) Mitigation Measures There will be no negative effects on the environment with the iocation of Whites Flooring Depot in this area. There will be no construction necessary, no restriction of traffic flow, no air or surface discharge from this business. (16) Permits (a) There will be no permits for this business to assume operations at this location. (b) n/a (17) Other Federal Actions There are no other federal programs or actions related to, or located in, the geographical area of this project. To the City's knowledge, there are no plans regarding this immediate location.