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07-PEDC Executive Director quarterly reportCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: 04/08/2010 Council Date: 04/ 12/2010 Originaring Department: Paris Economic Development Corp. Presented By: Steve Gilbert Agenda Item No.: 7. RECOMMENDED MOTION: Not an action item. POLICY ISSUE(S): Fiscal oversight BACKGROUND: PEDC Executive Director Steve Gilbert will present their quarterly report. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: 2010 Plan of Work; Community Highlights ACTION: BUDGET INFO: F] Financial Report ❑ Minute Order Expense $ ❑ Department Report ❑ Resolution Budgeted Amt. $ Z Presentation ❑ Ordinance y'I'D Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: REVIEWED AND APPROVED BY: Z Administration 2 City Clerk ❑ Communiry Development ❑ EMS/IT ❑ Eng. ❑ Finance ❑ Fire ❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Public Works ❑ Utilities City of Paris FIl; Revised 2/04/08 ~ ~.3 ~.J 1. i 3 A 1_1 R I s 2010 Plan of Work PURPOSE, GOALS & DUTIES (Based on Staff Reorganization and Updated Bylaws) PEDC's Purpose To promote, stimulate and enhance economic development in Paris and Lamar County. PEDC's Goals l. To create new jobs and retain existing jobs. 2. Conduct planning, research and job training activities to promote: i. Business retention and expansion. ii. Formation of new business. iii. Business attraction. 3. Develop and implement marketing strategies to promote PEDC's programs and services and educate stakeholders. PEDC Duties 1. Strategic Planniniz A. Develop an overall ED plan for the City, including long- and short-term goals to be approved by City Council. 2. Managiniz Resources A. Manage finances within the law for economic development goals that have a direct benefit to the citizens of Paris, Lamar County, Texas. B. Develop parameters for ED funding requests and collaborate with the City and County to negotiate and implement ED funding agreements. 3. Accountability Reportin~ A. Prepare & submit to City Council by June 30"' annually: i. Updated ED plan. ii. Proposed annual budget and plan of work with programs, projects and tasks for the fiscal year. B. Present Quarterly Reports (Jan., Apr., Jul., Oct.) and an Annual Report to City Council by Feb. 1 S` t a 01 0 0 f,?5 a0~_ 2010 Plan of Work PEDC'S CORE BUSINESS: TO DRIVE THE ECONOMIC DEVELOPMENT PROCESS 1. Earn Role as Lead Organization for Business Recruiting, Retention, Expansion and Creation. A. Single Point of Contact for Prospects. B. Develop & Nurture Collaborative Partnerships. 2. Brand Management for Paris, Texas' Location Advantages. A. Launch Targeted Marketing to Fill Project Pipeline. B. Create a Quick Response Proposal Management Engine. C. Provide Tools for Development & Real Estate Community. 3. Listen and Champion Pro-Business Public Policy. 2010 PLAN OF WORK ACTION STEPS (January to September 2010) 1. Business Attraction & Marketing 4. Business Incubator & Entrepreneur A. Pursue Targets and Prospect Deal 5upport Flow A. Director On-Board (PEDC's on- B. Sell Paris' Competitive Advantages going funding commitment...) C. Complete Content & Design Update: B. Business Plan Completed i. Sales Pitch & Proposal C. Facility Underway Template ii. Website & Social Media 5. Site Ready Industrial Parks Strategy A. Grounds Maintenance & iii. Collateral & Ad Placement Beautification B. Existing Land Assets & Future 2. Business Retention & Expansion Expansion A. Prove PEDC's Value C. GTech Spec. Building B. Manage Existing Incentive D. Airport Master Plan & Airpark Agreements Development C. Identify Prospects for Retention & Expansion (Synchronist Prime) 6. PEDC Reporting D. Host Industry Appreciation Week A. Results E. The Chamber, Industrial Mgr's Grp., B. Financial Red River Valley HR Assoc., etc. C. Relationships (City, County, State, Regional, National) 3. Develop and Promote a Positive, Pro- D. Pursue Accredited ED Organization Business Climate for Paris and Lamar County (Strategic Planning). 2 ` ~ G is Cl COMMUNITY HIGHLIGHTS (MARCH 2010) Numerous manufacturing plants and a diverse mix of other companies believe Paris, Texas is an ideal location for them to produce and distribute their goods and services to national markets. Manufacturing, food processing and other production industries, as well as distribution centers based in Paris make and distribute goods throughout Texas and principal markets throughout the Southern United States. Paric_ TPxac ic _ _ _ Top 20 1. - - - The Count Seat of Lamar Count . Location Advantages 2. The business, retail and healthcare hub for the surrounding region of Northeast Texas and Southeastern Oklahoma. 3. Borderin a four State Re ion: Texas, Oklahoma, Arkansas, and Louisiana. 4. Strategically situated to serve the Northeast Texas region, the Dallas-Ft. Worth Metro lex (100 miles to the east) and the Southern United States. 5. In the Central time zone. 6. Midwa between the East and West coasts for national distribution. 7. Easily accessible to major Texas markets (DFW, Houston, Austin, San Antonio) and the entire Southern US and Mexico. 8. A atewa to the South and Southeast United States. 9. Attractive to a diversified mix of business and industr 10. Home to four FORTUNE 500 Companies (Campbell's Soup, Kimberly Clark, Sara Lee, Florida Power and Li ht). 11. A central location to ma'or consumer markets. 12. An excellent multi-modal trans ortation network (hi hwa s, air, rail). 13. Sitting on industrial land and sites to meet the needs of both large and small industrial users. 14. Home to an available, skilled workforce. 15. Willin to rovide s ecialized and customized trainin b Paris Junior Colle e. 16. An abundant water su 1 from Pat Ma se Lake - now and in the future. 17. A lace that rovides a rich ualit of life for our citizens. 18. Home to the Tour de Paris Bike Tour and numerous events, festivals and celebrations. 19. A lace of rich and colorful histor . 20. Waitin to make our location decision uick, eas and en'o able. Shovel-Ready Paris PEDC has developed 200 acres of light industrial and commercial land in Industrial Park the City of Paris. This property is shovel-ready with all utilities and roads in place. It also offers rail access and frontage to four-lane divided highway. Lot sizes are flexible to accommodate a variety of projects and can ran e from 1 to 40 acres and above. Highways Paris is 38 miles from Interstate 30 Paris is the intersection of US Highways 82 and 271 and Texas Highways 19 and 24 Paris is surrounded by a divided 4-lane, controlled access loo W.!t OUOn? ; COMMUNITY HIGHLIGHTS (MAxcx 2010) Commercial Airport Cox Field (In Paris City Limits) Service • 6,000 ft. asphalt, lighted runway • 2 crosswa s of 4,500 ft. each Dallas/Ft. Worth International Ai ort (114 miles) Dallas Love Field (112 miles) Rail Service Paris is served by the Kiamichi Short Line Railroad Company with services linking to major rail carriers. Post-Secondary Schools Paris Junior College (PJC) • Excellent collaboration with many local business and industry clients. • Approach is to listen to and understand your talent needs and deliver value-added, flexible workforce tools & services to your business, including: - Hiring - Training - Human Resources Services Texas A&M - Commerce • Located 40 miles south of Paris in Commerce, Texas. • Four-year University with a wide range of undergraduate and graduate de ree ro rams. K-12 Public Schools Paris Independent School District (PISD) • 3,794 Students; 641 Faculty; Budget: $30,726,371 • Hi hli hts: Academicall Unacce table State Ratin North Lamar Independent School District • 2,973 Students; 477 Faculty; Budget: $24,165,847 • Hi hli hts: Reco nized State Ratin Chisum Independent School District • 900 Students; 137 Faculty; Budget: $8,963,650 • Hi hli hts: Academicall Acce table State Ratin Prairiland Independent School District • 1,125 Students; 137 Faculty; Budget: $10,853,414 • Hi hli hts: AcademicallAcce table State Ratin 2 - '0 G r, ? -3 COMMUNITY HIGHLIGHTS (MARCH ZOlO) Population Cit of Paris (2000) 25,898 (US Census Bureau) Lamar Count (2008) 49,286 NETEA 13 County Region 706,062 Anderson Count (Palestine) Gre Count (Kil ore) Henderson Count (Athens) Ho kins Count (Sul hur S rin s) Hunt Count (Commerce) Lamar Count (Paris) Titus Count (Mt. Pleasant) Cam Count Delta Count Franklin Count Smith Count U shur Count Wood Count Labor Force Statistics Location Labor Force Unemployment Rate Median HH Income (December 2009) Cit of Paris 12,568 8.1 °Io $35,044 Lamar Count 25,164 7.9°Io $40,487 Lamar County # Households Per-Capita Median % of Adults 25 + Statistics Personal HH HS Bachelor's Income Income Di loma + De ree + 19,077 $27,500 $38,110 76.3°Io 14.5% (As of) F (2000) (2007) (2007) (2000) (2000) Tax Rates Corporate Tax For reports originally due on or after January l, 2008, the tax rate is 1% for most taxable entities. Significant changes were recently made to Corporate Franchise Tax, see: www.window.state.tx.us/taxinfo/franchise Sales and Use Tax Total Rate 8.25% State 6.25% Cit 1.5% Count .5% Pro ert /Inventor Tax Cit $0.52 Count $0.4226 Paris Jr. Colle e $0.1850 Paris Ind. School District $1.3250 - 000 C 9 13' COMMUNITY HIGHLIGHTS (MARCH 2010) Major Industries (2008 Paris Industry 5ector # of Companies # of Jobs in Count % of Jobs in Count Avg. Annual Wa e and Lamar Manufacturin 67 4,434 21.7% $48,057 County) Retail, Accommodation, Food Svc. 273 4,045 19.9°Io $17,986 Healthcare & Social Services 171 3,184 15.6% $30,612 Construction 114 1,307 6.4% $35,191 Finance, Insurance, Real Estate 107 880 4.3% $27,624 Administrative, Waste Services 50 869 4.3% $24,711 Trans ortation/Distribution/Lo istics 61 759 3.7% $31,318 Professional & Technical Svc's., IT 188 639 3.1 °10 $35,992 Utilities 8 336 1.6% $79,114 Wholesale Trade 54 328 1.6% $40,538 Arts, Entertainment, Recreation 15 129 0.6% $19,927 Total Private Sector 1,108 16,910 82.8% $35,552 Total Education & Public Sector 56 662 3.2% $23,366 1. 000030 COMMUNITY HIGHLIGHTS (MARCH ZOlO) Attractive to Business and Industry Ma'or Em lo ers Com an Industr No. Em loyees Healthcare 1,000 Paris Re ional Medical Center (Two Hos iral Cam uses) Manufacturing - Food Processing/Production 900 Cam bell Sou Com an (Sou s/ 7uice/Sauces) Manufacturing - Paper Products 800 Kimberl -Clark Co oration (Dis osable Dia ers) Manufacturing - Metal Fabrication 700 Turner Industries (Pi e Products) Education 640 Paris ISD (K-12 Public School) Education 500 North Lamar ISD (K-12 Public School) Professional/Technical Services 480 TCIM (Telecom/Call Center) Manufacturing - Food Processing/Production 425 Sara Lee Baker Grou (Snack Cakes/Bread) City of Paris Government 320 Transportation/Distribution/Logistics 300 We-PaCk Lo 1St1CS InC. (Product Packa in , Warehousin & Distribution) Construction 250 RK Hall Construction (Hi hwa & Brid e Contractin & As halt Products) Education 245 FT Paris Jr. Colle e(PJC) (2-Year 7r. Colle e) 150 PT Lamar Count Government 190 Manufacturing 176 Paris Packa in (Pa er Cartons) Manufacturing 90 Sil an Can Com an (Sou Cans) Manufacturing 79 T& K Machiner (Aircraft Machined Parts) The Paris News Local News a er 50 NextEra Energy Resources - 33 Lamar Power Partners (Florida Utilities Power & Li ht) (Gas-Fired Electric Generation) go- 0 0 0 0 3 1 COMMUNITY HIGHLIGHTS (MARCH ZOlO) Financial Incentives: Cash, Tax Abatements, Exemntions and Related Programs PEDC Staff will assist your company with all of the following programs to maximize the financial incentives for your company. Each project is unique, and PEDC will consider and pursue a variety of options, for exarnple: direct loans (can be bank subordinate), loan guarantees, interest rate write downs, site development costs, including extension of utilities, cash grants for job creation, rent subsidies, build-to-suit with lease-back or purchase options, customized job training, loans with fargiveness based on job creation, reimbursement of relocation ex enses, and other o tions sub'ect to ne otiation. T ical incentives include the followirr : Pro-Business Because of a pro-business attitude, Texas has limited the number of state controls and taxes Climate in regulating the activities of business. Texas is a right-to-work State, and has no personal or cor orate income tax, nor a state ro ert tax. Tax Abatements The City of Paris has a proven track record of negotiating tax abatements for up to 10 years for new and expanding industries. In addition, Lamar County and Paris Jr. College will consider local tax abatements for projects with significant job creation and private capital investment. Local Cash The citizens of Paris adopted a'/a cent sales tax as an incentive assistance program to Incentive for Job facilitate industrial locations and expansions. This program is administered directly by the Creation Paris Economic Develo ment Cor oration. Industrial Dev. PEDC has a history of providing industrial development bonds as a viable alternative for Bonds financin industrial ex ansion and construction. Skills An incentive to relocating or expanding businesses through Texas community and technical Development colleges and workforce boards to provide customized assessment and training services to Fund business in a timel , efficient and res onsive manner. Enterprise Zone Depending on the exact site location, Paris is a qualified Enterprise Zone (EZ). If your development or revitalization project is located in the EZ, the City of Paris can approve partial or deferred payment of sales and use taxes for qualified purchases, leases, or rentals. Specifically, the EZ provides sales and use tax rebates on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, and electricity and natural gas purchases. The EZ also provides priority job training, and other preferential treatment on state and federal programs. The tax refund is $2,000 for each permanent job the project creates or retains during the five year designation period. Qualifying projects may also be eli ible for franchise tax reduction, ro ert tax abatement and other re lato relief. Freeport Law Article VIII, Section 1 of the Texas Constitution has been amended to allow real and Tax Exemptions personal property to be tax-exempt (city, county and school districts.) All goods, wares, merchandise, other than tangible personal property (inventory) acquired in or imported into Texas to be forwarded outside this state, which is detained for storing, assembling, manufacturin , rocessin , or fabricatin in Texas for 175 da s or less, ma be tax exem t. Financial Local financial services companies in Paris and Lamar County are committed to the Services economic growth of the region through aggressive commercial and industrial development. Paris is currently served by seven commercial banks, two savings & loan associations, and has access to mort a e bankers, and other creative financial services. SBA and Other Small business loans are available through the SBA 504 program. Up to 40°Io of total cost Loan Programs can be provided in the form of subordinate debt to SBA for most fixed asset projects at interest cost of 2 to 3% below market for periods of 15-25 years. This type of financing can provide 90% of the long-term financing needs of a small business. Also available are the SBA 7(A) Loan Guarantee program, the FmHA, Paris' local Revolving Loan Fund, various ro rams of the ArkTex Council of Governments, and the Texas Levera e Fund. 0 ~0 P, 32