2002-008-PEDCR
PARIS ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. 2002-008
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS
ECONOMIC DEVELOPMENT CORPORATION, APPROVING AND
AUTHORIZING THE EXECUTION OF AN INCENTIVE AGREEMENT
WITH PARIS CUSTOM TRAILER; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Paris Economic Development Corporation is a non-profit corporation
governed by the Development Corporation Act of 1979 (the Act) and was established for the
purposes of promoting, assisting, and enhancing economic development; and,
WHEREAS, the means and measures authorized by the Act and the assistance provided
therein with respect to financing are found to be in the public interest and serve a public purpose of
the state in promoting the welfare of the citizens of the state economically by the securing and
retaining of business enterprises and the resulting maintenance of a higher level of employment,
economic activity, and stability; and,
WHEREAS, in keeping with the purposes for which the legislature enacted the Development
Corporation Act of 1979 and the purposes for which the voters of the City of Paris established the
P3Iis Economic Development Corporation, it is deemed appropriate that an incentive agreement be
entered into with Paris Custom Trailer; and,
WHEREAS, the form ofthe Incentive Agreement, attached hereto as Exhibit A, should, in
all things, be approved, and the President should be authorized to execute the same; NOW,
THEREFORE,
BE IT RESOLVED
CORPORATION:
BY
THE
PARIS
ECONOMIC
DEVELOPMENT
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the form of the Incentive Agreement with Paris Custom Trailer, attached
hereto as Exhibit A, be, and the same is hereby, approved.
Section 3. That the President of Board be, and he is hereby, authorized and directed to
execute, on behalf of the Paris Economic Development Corporation, the Incentive Agreement, under
the terms and conditions and in the form shown in Exhibit A, attached hereto.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 18th day of D~
Jay Guest, President
ATTEST:
~~~~-¿- -. cC_--
Curtis Fendley, eêretary- Treasurer
APPROVED AS TO FORM:
INCENTIVE AGREEMENT
STATE OF TEXAS
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KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR
THAT, the PARIS ECONOMIC DEVELOPMENT CORPORATION, acting by and
through its President, Jay Guest, duly authorized, hereinafter called PEDC, and PARIS CUSTOM
TRAILER, acting by and through its Owner, Cleve Fendley, duly authorized, hereinafter called
PCT, do hereby contract and agree as follows:
WI TNE SSE T H:
WHEREAS, PEDC, an Economic Development Corporation organized under the Texas
Development Corporation Act of 1979, Article 5190.6 of Vernon's Texas Civil Statutes, exists
for the purpose of encouraging and assisting qualified service and manufacturing entities in the
creation of jobs in the Paris, Texas, area; and,
WHEREAS, PCT currently operates a custom trailer construction facility at Paris, Texas,
hereinafter referred to as the "Facility, " and intends to create an additional seven (7) to twelve (12)
permanent, full-time jobs over the next eighteen (18) months, and to invest a minimum of Thirty
Thousand and no/loo Dollars ($30,000.00) on expansion of a building and equipment at the Paris
location; and,
WHEREAS, PCT has requested that PEDC provide a grant for the creation of such new,
permanent jobs; and,
WHEREAS, the new jobs and investment by PCT in Paris, Texas, will encourage
economic development in Paris, Texas, and PEDC is willing to grant Two Thousand and no/lOO
Dollars ($2,000.00) per full-time job, up to a maximum of Twenty-four Thousand and no/lOO
Dollars ($24,000.00), pursuant to the terms and conditions of this Agreement for the creation of
new jobs and investment in equipment; and,
WHEREAS, the Board of Directors of PEDC has determined that it is in the best interest
of Paris, Texas, that financial incentives be offered to PCT in order to encourage it to expand its
business in Paris, Texas, and to create jobs in Paris, Texas;
NOW, THEREFORE, for and in consideration of the covenants, promises, and conditions
hereinafter contained, PEDC and PCT agree as follows:
Page 1 of 5
EXHIBIT A.
1.
PCT agrees to make improvements to the Facility in Paris, Texas, located at F.M. 1508,
Paris, Texas, as follows: construct six (6) additional bays. Such improvements will consist
of equipment to facilitate this expansion at the Facility. PCT further agrees to create at
least seven (7) new, permanent, full-time jobs paid at a rate of at least $9.00 per hour or
more, with benefits, during a three (3) year period, beginning December 18, 2002, and
ending December 17, 2003.
2.
The improvements and procurements described in Paragraph 1 hereof will be at a minimum
cost of Thirty Thousand and no/loo Dollars ($30,000.00), and shall be substantially
completed by June 17, 2003; provided, that PCT shall have such additional time to
complete the improvements as may be required in the event of "force majeure" if PCT is
diligently and faithfully pursuing completion of the improvements. For this purpose,
"force majeure" shall mean any contingency or cause beyond the reasonable control of
PCT including, without limitation, acts of God, or the public enemy, any natural disaster,
war, riot, civil commotion, insurrection, governmental or de facto governmental action,
unless caused by acts or omissions ofPCT, fires, explosions, accidents, floods, and labor
disputes or strikes.
3.
In return for the consideration described in Paragraphs 1 and 2 hereof, PEDC agrees to
provide Two Thousand and no/loo Dollars ($2,000.00) for each new, permanent, full-time
job created as a result of the expansion in excess of the twenty-three (23) jobs already in
existence at the time negotiations first began; provided PCT shall create a minimum of at
least seven (7) new jobs and shall be eligible to receive incentive payments of Two
Thousand and no/loo Dollars ($2,000.00) per new job for up to no more than a total of
twelve (12) additional jobs in excess of the existing twenty-three (23) jobs referenced
herein; for a total potential incentive not to exceed Twenty-four Thousand and no/loo
Dollars ($24,000.00). All jobs created to receive the PEDC incentive shall be located at
the PCT facility at F.M. 1508 in Paris, Texas. The seven (7) initial new, permanent jobs
shall be created not later than December 17, 2003, and must be maintained during the
remainder of the term of this agreement. As referenced above, PCT may receive
incentives for up to five (5) additional new, permanent jobs in excess of the required seven
(7) jobs so long as those jobs are created not later than June 17, 2004, and such additional
jobs must be maintained during the remainder of the term of this agreement. For purposes
of this agreement, a full-time job shall be one in which the employee works a minimum
of forty (40) hours in a seven (7) day work week, fifty-two (52) weeks per year, less
holidays, sick leave, and vacation, or its equivalent.
An advance incentive payment in the amount of Fourteen Thousand and no/loo Dollars
($14,000.00) in anticipation of the first seven (7) new, permanent jobs shall be made to
PCT within sixty (60) days of the date of this agreement. IfPCT creates more than seven
(7) new, permanent jobs, not to exceed twelve (12), PEDC agrees to pay the incentive
payments within sixty (60) days of receipt of copies of the Texas Workforce Commission
Employer's Quarterly Report evidencing the creation of such additional jobs. These
Page 2 of 5
reports must be presented to the PEDC within thirty (30) days of the day PCT begins
construction, and these reports shall begin with the twenty-three (23) existing jobs as
mentioned above and continue up to the date construction began. Thereafter, PCT shall
continue to provide the PEDC with a copy of its Texas Workforce Commission
Employer's Quarterly Report within thirty (30) days of its filing of the same with the
Texas Workforce Commission to evidence the continued existence of such new jobs and
to evidence additional jobs created for additional incentive payments from the PEDC.
4.
PCT agrees that the PEDC, its agents and employees, shall have the reasonable right of
access to records concerning PCT I S investment in the improvements for the purpose of
conducting an audit of the project improvements and project costs. Any such audit shall
be made only after giving PCT notice at least fourteen (14) days in advance and will be
conducted in such a manner as to not unreasonably interfere with the operation of the
Facility. Upon request, PCT will provide the PEDC with a detailed Asset Report with an
itemized list of assets placed into service from the date of execution of this Agreement to
June 17, 2003. The Asset Report will provide the date on which the asset was capitalized,
the acquisition amount, and the accumulated depreciation amount. At the PEDC' s request,
PCT will provide actual invoices to support the amounts shown on the Asset Report.
5.
PCT further agrees that the PEDC, its agents and employees, shall have reasonable right
of access to the property to inspect the improvements in order to insure that the
construction of the improvements are in accordance with this Agreement and all applicable
state and local laws and regulations or valid waiver thereof. After completion of the
improvements, the PEDC shall have the continuing right to inspect the property to insure
that it is thereafter maintained and operated in accordance with this Agreement during the
term of the Agreement, and PCT shall provide evidence as to the creation of any new,
permanent jobs described in this Agreement. All inspections will be made only after
giving PCT notice at least seventy-two (72) hours in advance, and such inspections shall
be conducted in such a manner so as not to interfere with the operation of the Facility.
Representatives of the PEDC inspecting the property and improvements shall be
accompanied by one (1) or more representatives of PCT and shall sign an agreement
promising to maintain the confidentiality of any information they obtain in connection
therewith except for the purposes of verifying or enforcing compliance with this
Agreement. Said representative shall also be required to observe any facility rule and
regulation applicable to the property. Nothing herein shall be construed as limiting the
PEDC's ability to perform inspections or to enter the Property the subject of this
Agreement.
6.
In the event that the improvements described in Paragraph 1 hereof are not completed in
accordance with this Agreement or the expenditure for the improvements does not meet the
amount required herein, then PCT shall return all incentives paid to it within one hundred
twenty (120) days of the date of notice of default.
Page 3 of 5
7.
In the event that any new job created in accordance with this agreement, and for which
incentives are paid by PEDC, is abolished, or created and later becomes vacant, or remains
unfilled, pro rata return of the funds provided by PEDC shall occur.
EXAMPLE:
If the number of new employees falls from twelve (12) to five (5) for six (6) months during
2003 and then returns to one hundred percent (100%) new employment, i.e. twelve (12)
new employees, the following formula will be used:
$24,000.00 (funds provided by PEDC) +36 months (guaranteed period that
new jobs must be maintained) +12 employees (number of new jobs created
up to that point) x 7 employees (number of jobs previously created but
vacated) x 6 months (length of time number of employees fell below the
number previously created and for which incentives were paid)
8.
In the event that PCT fails to voluntarily return any and all incentives paid to it as required
under paragraphs 6 and 7 of this agreement, and the PEDC is compelled to enforce such
requirements by filing suit or seeking other legal remedies, PCT shall, upon a finding of
default and obligation to pay, pay all costs incurred by the PEDC in such collection effort,
including court costs and attorneys fees.
EXECUTED on the 18th day of December, 2002.
PARIS ECONOMIC DEVELOPMENT
CORPORATION
By:
Jay Guest, President
ATTEST:
Curtis Fendley, Secretary-Treasurer
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
PARIS CUSTOM TRAILER
By:
Cleve Fendley, Owner
Page 4 of 5
STATE OF TEXAS
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COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared JAY GUEST,
President of Economic Development of the Paris Economic Development Corporation, Paris, Texas,
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein expressed
and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 18th day of December, 2002.
Notary Public, State of Texas
STATE OF TEXAS
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COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared CLEVE
FENDLEY, Owner of Paris Custom Trailer, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this
day of December,
2002.
Notary Public, State of Texas
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