19-ADOPT RESOLUTION APPROVING TWO YEAR EXTENSION OF PEDC LINE OF CREDITCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
9/3/2012
Council Date:
PEDC
Steve Gilbert, Execurive Director
19.
9/ 10/2012
RECOMMENDED MOTION:
Adopt a resolution approving a two year extension of the Paris EDC $2M Line of Credit with Capital
One Bank that expires 9/15/2012.
POLICY ISSUE(S):
Economic Development
BACKGROUND:
This is a renewal of an existing $2 million dollar line of credit. The Paris EDC has this line of credit
available in case an Economic Development Project requires it to be used. Terms of the line of credit
are:
• 2 year line of credit.
• Prime - 1.96 = Current rate of 1.29%.
• Monthly Interest Payment Only.
• Maintain $750,000 in liquidity.
• 1% renewal fee at closing.
BOARD/COMMISSION RECOMMENDATION:
Approved by Paris EDC Board on August 14, 2012, subject to Legal Counsel approval.
EXHIBITS:
Resolution
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
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❑ Department Report Z Resolution
Budgeted Amt.
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❑ Presentation ❑ Ordinance
y'TD Actual
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❑ Public Hearing ❑ Other
Acct. Name
Acct. Number
FiscAL NoTES:
Citv of Paris
P;evised 6/20/12
116
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, ACKNOWLEDGING AND APPROVING THE RENEWAL OF A
LOAN AGREEMENT AND PROMISSORY NOTE BY AND BETWEEN
THE PARIS ECONOMIC DEVELOPMENT CORP. "BORROWER" AND
CAPITAL ONE, N.A. BANK "LENDER" FOR A REVOLVING LINE OF
CREDIT IN THE AMOUNT OF TWO MILLION DOLLARS
($2,000.000.00); MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
Draft
WHEREAS, the Paris Economic Development Corporation is a non-profit
corporation established under the Development Corporation Act of 1979 (the Act)
and was created for the purposes of promoting, assisting, and enhancing economic
development in the City of Paris, Lamar County, Texas; and,
WHEREAS, on August 14, 2012 at a regular meeting of the Paris Economic
Development Corporation the PEDC Board voted unanimously to renew a loan
agreement in the amount of TWO MILLION DOLLAR ($2,000,000.00) with Capital Orie
Bank, N.A. for future economic development projects; and
WHEREAS, the City of Paris, Texas is not a party to the loan agreement and
promissory note between Paris Economic Development Corporation "Borrower" and
Capital One Bank, N.A., but the "Lender" but has requested the City Council of the Cit.y
of Paris to acknowledge the financing agreements between the Paris Economuc
Development Corporation and Capital One Bank, N.A.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, PARIS, TEXAS:
Section 1. That the findings set out in the preamble of this resolution are
hereby in all things approved.
Section 2. That the City Council of the City of Paris, Texas acknowledges and
approves the renewal of the loan agreement, promissory note and other related loan
documents between the Paris Economic Development Corporation and Capital Ona
Bank, N.A. for the TWO MILLION DOLLAR (2,000,000.00) revolving line of credit for
future economic development projects.
Section 3. That this resolution shall be effective from and after the date of
passage.
PASSED AND APPROVED this 10th day of September, 2012.
11'7
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
11 8
A.J. Hashmi, M.D., Mayor