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2008-021-RES-approving submission of an application for $60,000.00 of rural business enterprise grant-revolving loan fundRESOLUTION N0. 2008-021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING SUBMISSION OF AN APPLICATION FOR $60,000.00 OF RURAL BUSINESS ENTERPRISE GRANT-REVOLVING LOAN FUND (RBEG-RLF) FUNDS TO ASSIST WITH THE PURCHASE OF A COMMERCIAL BUILDING IN ORDER FOR A LOCAL BUSINESS TO EXPAND ITS OPERATION; MAKING 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 Cou~cil 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 $60,000.00 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 1. 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 $60,000.00 of Rural Business Enterprise Grant-Revolving Loan Fund (RBEG-RLF) funds to assist with the purchase of 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 lOth day of March, 2008. Ma`yor ATTEST: , J ce Ellis, City Clerk APPROVED AS TO FORM: ~-4), - 'e'7~ W. Kent M lyar, Ci Attorney REVOLVING LOAN FUND LOAN SUMMARY BORROWER; Whites Flooring Depot of Paris CO-BORROWER; Kenneth White ADDRESS; (new) 2030 North Main Street CTTY; Paris STATE; (was) 1131 NW Loop 286 Texas zip; 75460 BUSINESS; Custom f loorin TotalNeeded; $ 200, 000 purpose; Purchase building Owner; 80,000 12mas. workina capital Lender; 60,000 real estate Gity ; 60,000 real estate Lender; samar 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 e c o n d Cpl]ateral; same as above Jobs Created; 4 r e t a i n e d, 2 new Cost Per Job; 10,000 Recommendstion: Disapproval; ( ) City Constiltant Approval; ( ) City Manager Date Date Comments: Buildinq appraised at $135,000, purchased for $120,000. Business 1 year in operationo No tax return. Used 3 years personal tax returns +P/L and BS. EX++iso 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:Mazchl 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 Paris Amount: $60,000.00 Interest:4.90% fixed Repayment Term: 15 years Payment: $471.35 Security: Real Estate and improvements subordinated to Lamar 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 \ ` ~ (1111 ~ ~ ~ ; ~ qr PAM , . ~ ;S; ~0~ ~o~~~~~~.~~~cs~0 ~a~~~~~~~.. ~~~~~~A~~~~~~~p March 11, 2 008 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) 785-751 1• FAX (903) 785-8519 USDA Position 3 FORM APPROVED Form RD I940-20 OMB No. 0575-0094 (Rev. 4-06) Naroe of Project REQUEST FOR ENVIRONMENTAL INFORMATION City of Paris RECD/RLF Location Paris, Lamar County, TX item l a. Has a Federal, State, or Local Environmental Impact Statement or Analysis been prepared for this project? ❑ Yes 0 No ❑ Copy attachad as EXHIBIT I-A. 1 b. If "No." provide the information requested in Instructions as EXIIBIT I. Item 2. The State Historic Preservation Officer (SHPO) has been provided a detailed project description and has been requested to submit comments to the appropriate Rutal Development Office. El Ycs ❑ No Date descrip6on submitted to SHPO Ttem 3. Are any o t e o owmg anuses or envuonment resources eit er to be a ecte y the proposal or ocate with in or a jacent to the project site(s)? (Check approprrate box for every item of the following checklist). Yes No Unknown Yes No Unknown 1. Industrial ❑ El ❑ 19. Dunes......................... ❑ Fli ❑ 2. Commercial.................................... 0 ❑ ❑ 20. Estuary ❑ Rl ❑ 3. Residential ❑ ~ ❑ 21. Watlands................................ ❑ 0 ❑ 4. Agricultural ❑ ~ ❑ 22. Ploodplain....................................... ❑ El ❑ 5. Grazing ❑ ~ ❑ 23. Wildemess....................................... ❑ F-1 ❑ (designated or proposed under 6. Mining, Quarn,-mg . ❑ ~ ❑ the Wilderness Act) 7. Forests.......................................... ~ 0 ~ 24. Wild or Scenic River ❑ ~ ❑ (proposed or designated under the Wild 8. Recreational ❑ ~ ❑ and Scenic Rivers Act) 25. Historical, Archeological Sites........... ❑ Q ❑ 9. Transpqrtation ❑ ~ ❑ (Listed on !he Natianal Register of Historic Places or which may be 10. Parks ❑ ~ ❑ eligible for listing) 11. Hospital ❑ 0 ❑ 26. Critical Habitats................................ ❑ ~ ❑ (ettdmrgered/threatened species) 12. Schools ❑ ~ ❑ 27. Wildiife ❑ 0 ❑ 13. Open spaces ❑ I ❑ 28. Air uali Q ty ❑ 0 ❑ 14. AquiferRecltazge Area ❑ ~ ❑ . 29. SoLd Waste Management ❑ 0 ❑ 15. Steep Slopes ❑ ~ ❑ 30. Energy Supplies ❑ El ❑ 16. Wildlife Refuge ❑ El ❑ 3 L Natural Lmmdmark............................ ❑ [D ❑ 17. Shoreline....................................... ❑ ED ❑ (Listed on National Registry ofNatural Lw:dmarks) 18. Beaches ❑ Im ❑ 32. Coastai Bartier Resources System..... ❑ ~ ❑ Ttem 4. Are any facilities under your ownership, lease, or supervision to be utilized in the aceomplishment of this project, either lisied or under considerarion for listing on the Environmental Protection Ag,ency's List of Violating Facilities? ❑ Yes M No (Date) (Appliccmt) Mayor, City of Paris (Title) According to lhe Paperwork Reducrion Rct of 1995, an agency may not conduct 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 number for this infarmation collections is 0575-0094. The tlme required to complete thrs information collection is estimated to average 6 to 10 hours per response, includi»g the time for reviewing instructions, searching esistrng data sowces, gathering and maintaining the data needed, and campleting and reviewing the col/ection of informatiorc Signed: (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 Main 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 cantinues employment, but add at least two more 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) Area 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 storm 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 (0) Attached as Exhibit 1 Exhibit 1 1) USGS Map 2) FEMA Map 3) Site Photos 4) Soil Survey (nla) 5) Aerial Photo - _ ~l ' ~ J ~ ~ j ~ ~ • ~ s I _ _ 9 \ I \ I / / ° ~ 3; ' \ ~~E ~ ~ ~ ~ `.i ~ ~ r I ~ ~ ~ . . N / : ~ - ~ _ ~ ~ . i V II , ~ , ~ - ~ ; Ll - - - - o , I wo ~ /¢C. ~ ~ / ~ ~ L~' ~ ~ ~ ~ 3 - 1S F4d8 I -35. ~ +fi 1S i ~ f • ' I _ I - ~ _ ~ • ~ ~ lm~~ _ ~ 1. ~ - • ~ f ~ l ~ " ❑ . ~ ~ _ ~e« ~ i _ • ~ ' r . • ~ ~ \ ~ - I -rT.. • ~ ] ~n \ .N ~ - / J I ~ 15 w . • i ~ ~ . o ~ ~e • I ir _ , ~ ~ 9 m ~~n ~ ' ~ °Q~ ~ I \ N • V ~ / \ • ~ I ~F I ~ \ _ I • ~ ~~~-~i~ ~ ~ -t- • / ~ - 1L' \ I\~ C O I ~ ~ ~'i~ J ~ • ~ I I. '19 \ ` 1 1 ~ I I • - ii p ( - / ~ o~ t~ ~ ` C J• _ ~ : /II I ■ ~G/\\•~/ Ui ~ • ~ if_ ' - ~ > \ JR~,-J k15, ~G~ . . I J- . . ~ ~P I ~ y~ - ~ o p ~ ~ ~ . ~ h ' ~ _ ~ ~ ~ ~ 'r' . ~ ru~~ w 0 0 C ~ ~ • i , \ . I ° \ ` r0 ~ ~ I ~ „ ' . ~ ~ ~ Ij / , ~ o . ~O "F _ ' • . . - • ~ ~ i To ~ N ~ ` a ~ . ~ ~ ~ . ~ • . ~ ~ w _ v ~ ~ ~ I ~ > o ' ~~%:~J , ~ i ~ ~ I o ~ ~ • ~ ~ , 1 ' ~ A I w ` 4; . i p l o e ~ J I I• i d g O / 0 ~ ~ / ~4 . ~ \ ~ - • _ ~ ~ c-i ~ ° ' ~ • , ~ r) ~ , , ~ • ~ ~ , ~ ~ - ~ ~ ~ ~ CJn~ ~ \ I ~ V `1 J / q ~ 1 ~ \ . - - ~ 1 . ~lr I/ \ f __l~ I ~ ~ ~ ~ V~~\ 7 a ~b-~~ l \ -F a ~ O ~ ( ~ / 1 - ~J O~ ~ . _ ~ • ~ ~~i ~ i ~ ~O ~ o ~ ~l`• ~ ❑ G ~'r ~1 , ~ U C~ ~ - z= 1-2 s ~ r \ d~ 1 • ~ (r ~ i, / ~"_7 I 099 r ° ] ~ ,":N [S:IGISIDWGSI4EIZI4LSIsidsl864 306 I.sid] Scale 1:15760.441 (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 highes# 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 location 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 imrnediate location.