09-B PEDC MINUTES OF THE
PARIS ECONOMIC DEVELOPMENT CORPORATION
SPECIAL MEETING
SEPTEMBER 12, 2001
The Paris Economic Development Corporation met in special session on
Tuesday, September 12, 2001, 4:00 P. M., Paris Junior College, Applied
Technology Building, Room 1016, 2400 Clarksville Street, Paris, Texas.
President Mike Rhodes called the meeting to order with the following
Board Members present: Jay Guest, Michael Dunn, and Curtis Fendley;
ex-officio Board Members Bobby Walters, and Terry Christian. Also
present were Executive Director Gary Vest, City Attorney Larry Schenk,
City Manager Michael E. Malone, Director of Finance W. E. Anderson,
City Engineer Shawn Napier, and City Clerk Mattie Cunningham.
President Rhodes called for approval of minutes from the previous
meeting. A motion was made by Director Guest, seconded by Director
Fendley, for approval of the minutes as presented. The motion carried
unanimously.
President Rhodes introduced Shawn Napier, the new City Engineer for the
City of Paris.
President Rhodes asked Gene Anderson, Director of Finance, to give the
financial report for the month of August. Mr. Anderson came forward
telling the Board that the interest amount is up because all of the CD's
paid their interest, other than that, they would see the usual revenue. He
said regarding the expenditures, the line item, associations, represents the
payment to the World Economic Development Alliance. Other than that,
you will see the usual repetitive expenditures.
A motion was made by Director Fendley, seconded by Director Guest, for
approval of the financial report as presented. The motion carried
unanimously.
Paris Economic Development Corp.
Sept. 12, 2001
Page 2
President Rhodes called for consideration of and action on a
recommendation to the City Council of the City of Paris on the tax
abatement application from S. I. Management, Inc. And KG Properties,
LLP.
President Rhodes advised that a few months ago it was agreed that all tax
abatement requests would come through the Paris Economic Development
Corporation before they go to the City Council. Mr. Rhodes said this is
our first request.
Gary Vest, Executive Director of the Paris Economic Development
Corporation, reported that this request is for an Assisted Living Center,
which will be located at 1746 Bonham Street. He said it would employee
twenty-five people, and will have a $400,000.00 payroll. They will have a
capital investment of $2,744,000.00. Mr. Vest said normally this type of
project would not be considered for a tax abatement, but the Assisted
Living Center will be within the enterprise zone, and would be eligible for
tax abatement under the state tax abatement laws. Mr. Vest advised that
the Paris Economic Development Corporation's guidelines and procedures
is to give tax abatements to manufacturing and warehouse distribution
facilities. Mr. Vest said there would be goodwill to be gained from a new
project in West Paris. Mr. Vest advised that the first thing that this
company asked for was a one hundred percent seven year tax abatement.
Mr. Vest said that he and the City Attorney have been working on a tax
abatement policy which has not been presented to this board or the City
Council. I t has a scale that calls for a graduated tax phase-in. He said if
this board makes a recommendation to the City Council, his suggestion
would be that they go in with an eighty percent abatement for the first
three years and reduce that by twenty-five percent for the next four years
so that after seven years they will be paying one hundred percent of the
tax.
Paris Economic Development Corp.
Sept. 12, 2001
Page 3
Mr. Vest said the company has asked for a one hundred percent refund of
Local Sales and Use Tax. This is the first time this has been requested.
Mr. Vest advised that in order for the PEDC to do this, they would also
have to receive enterprise designation to qualify for this request. He said
it was really doubtful that this type project could receive enterprise status.
The company was also asking for a Direct -Interest Loan package. Mr.
Vest would not recommend that PEDC enter into such an incentive.
Other requests were to promote economic development in the zone and
give prompt consideration to building permit request; utilization of the
Waterworks and Sewer System Revenue Bonds for the purpose of
improvements and the payment of professional services related to the
construction and financing of such projects; increase in Police and Fire
Protection for this vulnerable segment of our community; reduce utility
rates on Water and Wastewater by ten (10) percent, as well as the five (5)
percent rate reduction rider offered by TXU Electric and Gas, both for
seven years; and provide funding for improving of existing roads to the site
as needed.
Mr. Vest told the Board that the only thing he would recommend is the tax
abatement using the tax phase-in basis, which is a performance agreement,
and they would not get a tax break if they do not perform.
President Rhodes called for consideration of and action on a
recommendation to the City Council of the City of Paris on the tax
abatement application from S.I. Management, Inc. And KG Properties,
LLP.
No motion was made and the item died for lack of a motion.
Paris Economic Development Corp.
Sept. 12, 2001
Page 4
Mr. Vest reported that they have had only four leads since the last
meeting. One was from Outlook Magazine, another from Area
Development and two from the World Economic Development Alliance.
Mr. Vest said he and Eric attended a show, which was the Northeast
Equipment Manufacturers, as an attendees to this show, they passed out
brochures, pens, and business cards. Mr. Vest explained that they will
place this information into the computer and will be able to direct mail
those manufacturers and continue to work with them.
Mr. Vest showed the Board a sample of the postcard that they are
developing that will be distributed in California.
Mr. Vest advised that yesterday, in Austin, he attended a meeting with the
Texas Good Roads Association. At the next PEDC meeting he will bring
to the Board a proposed resolution to support Proposition 15 which will
allow TxDOT to issue bonds to finance highway construction. He said this
is something that PEDC has promoted to retain and attract manufacturers
and warehouse distribution companies.
Mr. Vest reported that he and Eric entertained a prospect today for the
Oliver Rubber Building. He said it is a good company and project and felt
that it is something that he will be visiting with the Board about, because
he felt that the PEDC may have to participate in some degree to make this
happen. Mr. Vest discussed the building with the Board. He said this
company is a sister company with Flex-O-Lite and they would take the
Flex-O-Lite product and use it in a further manufacturing process. Mr.
Vest advised that this company would start with one shift of 15 people and
eventually go to three shifts.
Paris Economic Development Corp.
Sept. 12, 2001
Page 5
There being no further business, the meeting was adjourned.
MICHAEL RHODES, PRESIDENT
ATTEST:
MATTIE CUNNINGHAM
City Clerk