2003-004-PEDCR
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2003-004
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING AND
AUTHORIZING THE EXECUTION OF A DEVELOPMENT CONTRACT
WITH PARIS PACKAGING, INC., EXTENDING THE TERMS AND
CONDITIONS OF THE ORIGINAL DEVELOPMENT CONTRACT DATED
JULY 15, 1998; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Paris Economic Development Corporation, hereinafter called "PEDC," and
Paris Packaging, Inc., a Texas Corporation, have previously entered into a Development Contract
dated July 15, 1998, containing certain representations and promises associated with the loan of
$4,000,000.00 in funds from PEDC to Paris Packaging, Inc. to carry on a manufacturing
operation in the city of Paris, Texas; and,
WHEREAS, the aforesaid original note securing the loan of said $4,000,000.00 between
Paris Packaging, Inc. and PEDC is scheduled to mature on July 15, 2003, the same date that the
obligations of Paris Packaging, Inc. under the original Development Contract would expire; and,
WHEREAS, Paris Packaging, Inc. has requested a renewal and extension of the existing
note such that said note in the remaining principal amount of $3,392,165.54 would be extended
beginning July 15,2003, for an additional one hundred sixty-five (165) monthly payments in the
amount of $32,000.00 each, with the final monthly payment ofthe unpaid balance being due and
payable on April 15, 2017; and,
WHEREAS, in consideration of the acceptance of said renewed and extended note, Paris
Packaging, Inc. is prepared to enter into an extended Development Contract on the terms and
conditions as set out herein; NOW, THEREFORE,
BE IT RESOLVED BY THE
CORPORATION:
PARIS
ECONOMIC
D EVELO PMENT
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the President of the Paris Economic Development Corporation, Jay Guest,
be, and he is hereby, authorized and directed to execute, on behalf of the Paris Economic
Development Corporation, that certain Development Agreement by and between Paris Packaging,
Inc. and the Paris Economic Development Corporation, a copy of which is attached hereto as
Exhibit A and for all purposes incorporated herein.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 16th day of Ap,ril, 2003.
hY~nt
ATTEST:
( "( 'j....f--~
Curtis Fendley, S
í
~ .-
etary- Treasurer
\
APPROVED AS TO FORM:
STATE OF TEXAS
)
)
)
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR
DEVELOPMENT CONTRACT
WHEREAS, Paris Economic Development Corporation, hereinafter called "PEDC," and
Paris Packaging, Inc., a Texas Corporation, have previously entered into a Development Contract
dated July 15, 1998, containing certain representations and promises associated with the loan of
$4,000,000.00 in funds from PEDC to Paris Packaging, Inc. to carryon a manufacturing
operation in the city of Paris, Texas; and,
WHEREAS, the aforesaid original note securing the loan of said $4,000,000.00 between
Paris Packaging, Inc. and PEDC is scheduled to mature on July 15,2003, the same date that the
obligations of Paris Packaging, Inc. under the original Development Contract would expire; and,
WHEREAS, Paris Packaging, Inc. has requested a renewal and extension of the existing
note such that said note in the remaining principal amount of $3,392,165.54 would be extended
beginning July 15,2003, for an additional one hundred sixty-five (165) monthly payments in the
amount of $32,000.00 each, with the final monthly payment ofthe unpaid balance being due and
payable on April 15, 2017; and,
WHEREAS, in consideration of the acceptance of said renewed and extended note, Paris
Packaging, Inc. is prepared to enter into an extended Development Contract on the terms and
conditions as set out herein; NOW, THEREFORE,
FOR AND IN CONSIDERATION OF THESE PREMISES, Paris Packaging, Inc. and
PEDC agree as follows:
1.
That, for the term of this Contract, the same being for an additional one hundred sixty-five
(165) months, beginning July 15, 2003, and ending on April 15, 2017, Paris Packaging,
Inc. shall operate a business located in Paris, Texas, with a manufacturing facility located
at 800 W. Center Street, Paris, Texas, and shall at that location operate said business as
a printing, folding carton, and packaging manufacturing facility and/or related
manufacturing facility.
2.
That Paris Packaging, Inc. agrees to keep employed at the manufacturing facility located
in Paris, Texas, at least one hundred sixty (160) employees for the term of this contact,
said employment level to be verified by furnishing PEDC a copy of the employer's
quarterly employee report furnished to the Texas Workforce Commission.
3.
That Paris Packaging, Inc. shall keep the assets purchased insured against fire and the
elements in an amount of at least $12,000,000.00, or in an amount equal to the most
current appraised value of the property for taxation purposes as said value shall be
established by the Lamar County Appraisal District, whichever amount shall be greater,
EXHIBIT ß...
established by the Lamar County Appraisal District, whichever amount shall be greater,
with a loss payable to PEDC as its interest may appear.
4.
That, in the event of default on the promissory note approved by PEDC of even date
herewith and as described herein, said note shall become a personal liability of David D.
Hickerson of Franklin County, Texas.
5.
That venue on any controversy arising under this agreement or with regard to the aforesaid
note shall lie exclusively in Lamar County, Texas, and shall be subject to and resolved in
accordance with the laws of the State of Texas, and in the event of enforcement of said
note by the payee, the maker shall be liable for reasonable attorney's fees incurred by the
holder for enforcement thereof.
DATED this 16th day of April, 2003.
PARIS ECONOMIC DEVELOPMENT
CORPORATION, INC.
By:
Jay Guest, President
ATTEST:
Curtis Fendley, Secretary-Treasurer
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
PARIS PACKAGING, INC.
By:
David D. Hickerson, President
ATTEST:
Secretary