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03-B PEDC (07/23/03)MINUTES OF THE REGULAR MEETING OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION July 23, 2003 The Paris Economic Development Corporation met in regular session on Wednesday, July 23, 2003, 4:00 P.M., at Paris Junior College, Applied Technology Building, Room 1206, 2400 Clarksville Street, Paris, Texas. President Don Wall called the meeting to order with the following Directors present: Dick Severson, Mike Dunn, Rodney Bass, and Sims Norment. Also present were Executive Director Gary Vest, Ex-officio Member Mike Graxiola, City Manager Michael E. Malone, City Attorney Larry W. Schenk, Director of Finance Gene Anderson, and City Clerk Mattie Cunningham. President Wall announced that the first order of business was election of officers for the ensuing year and called for nominations for President. Director Norment nominated Don Wall for President of the Paris Economic Development Corporation. A motion was made by Director Bass that nominations cease. The motion was seconded by Director Severson, and carried unanimously with Don Wall being elected President. President Wall called for the election of Vice President of the Paris Economic Development Corporation. Director Norment nominated Mike Dunn for Vice President. A motion was made by Director Bass that nominations cease. The motion was seconded by Director Severson and carried unanimously with Mike Dunn being elected Vice President. President Wall called for nominations for Secretary-Treasurer for the Paris Economic Development Corporation. Director Norment nominated Dick Severson for Secretary-Treasurer of the Paris Economic Development Corporation. A motion was made by Director Bass that nominations cease. The motion was seconded by Director Dunn and carried unanimously with Dick Severson being elected Secretary-Treasurer. Paris Economic Development Corp. July 23, 2003 Page 2 President Wall advised that the next item on the agenda was presentation of plaques to departing Board Members Curtis Fendley and Jay Guest, and further advised that they were not present. President Wall said the plaques would be given to them at an appropriate time and place. President Wall called for the approval of the minutes from the previous meeting of June 16, 2003. A motion was made by Director Severson, seconded by Director Dunn, for approval of the minutes as presented. The motion carried unanimously. President Wall called for the approval of the minutes from the previous meeting of June 18, 2003. A motion was made by Director Norment, seconded by Director Bass, for approval of the minutes as presented. The motion carried 5 ayes, 0 nays. President Wall called for the financial report. Gene Anderson, Director of Finance for the City of Paris, came forward advising that he had information on the latest sales tax and the board had been furnished that information. He said the July number is up noticeably over the previous year due to an audit adjustment that is reflected; otherwise, it would have been close to what last year's number was. Mr. Anderson explained that the State of Texas will go in and review those sales tax numbers for several months and if they find a mistake, it is reflected in a later report. Mr. Anderson advised that this helps offset October, 2001, where there was a negative audit adjustment that hurt so much. Mr. Anderson also furnished a copy of the cash flow statement indicating that the sales tax collection for June was $70,048.00. He also pointed out that there is a negative interest amount because, in order to process part of the $500,000.00 loan to C-Tech, he did have to redeem a couple of CD's prior to their due date. He said one of the banks actually charged an interest penalty for doing that, and that is why that turned out to be a negative. Mr. Anderson said Paris Economic Development Corp. July 23, 2003 Page 3 they also had the Paris Packaging payment. Mr. Anderson discussed the cash outside indicating that a number of those items are routine and indicating where the $500,000.00 payment was made to C-Tech and the payments for work done by Phil Smith. Mr. Anderson said the "New Industry Project" is the only other unusual item, but the bulk of that, almost $23,000.00 of the $26,000.00, had to do with preliminary work that is being done on the Industrial Park area such as cleaning it up and preparing it for the work that is coming up. A motion was made by Director Severson, seconded by Director Dunn, to accept the financial report that was presented by Mr. Anderson. The motion carried 5 ayes, 0 nays. President Wall announced that Curtis Fendley had arrived and asked Mr. Fendley to come forward. President Wall presented Mr. Fendley with a plaque for his outstanding service with the Paris Economic Development Corporation. President Wall called for the Director's report. Gary Vest, Executive Director of the Paris Economic Development Corporation, came forward advising that they have had quite a bit of activity on some of the things that he had previously reported to the Board. They are working with a prospect for a Distribution Center and they are expecting the president of that company to make a site visit during the month of August. Mr. Vest said they thought this was going to be a fast-moving project, but the president of the company slowed it down. He said they would be distributing their product over about a five-state area from this proposed warehouse. Mr. Vest said that TEXED had a project called Project Dakota, which is a company that makes industrial fans. They had submitted a proposal on this project. They think they met all of the company's requirements but they are waiting for a response. Paris Economic Development Corp. July 23, 2003 Page 4 Mr. Vest said they previously had a good prospect for the Oliver Rubber building with the parent company of Flex-O-Lite. The prospect had dropped when negotiations with the parent company ended. He and Eric went out and met with the plant manager about three weeks ago and it did not look good. They tried to get him to reopen negotiations. He reported that Rett Hogan from Cooper Tire called today and told them that they were talking again. Mr. Vest said that Eric was in Chicago the week of June 23 through 27, 2003, for the National Plastic Exposition. He said they did that show in conjunction with the Texas Economic Development Corporation and this is the first time they had ever worked with them on a Trade Show. Mr. Vest said that Eric was pleased with the show and he was following up on seventy-three leads. Mr. Vest said last week he was at a TEDC meeting in Houston and they had a good meeting. He advised that he will be the new Chairman of the Texas Economic Development Sales Tax Association starting in September. Mr. Vest said that he and Eric will be having lunch tomorrow with Madhu Khanna, who is the new Plant Manager with Philips Lighting. She is from India. Mr. Vest invited the Board Members to join them and meet with Ms. Khanna. President Wall said he received a report today that Philip's was moving this plant to Mexico. Mr. Vest advised that Philip's was down to seventy-two employees, but he was hopeful that Madhu will be able to help them. Mr. Vest stated that the plans for Paris Industrial Park - Phase I were available for review by the Board members. He said they met with the engineers on Tuesday. They were looking at the hydraulics and where they were going to put drainage structures on the site. He said they are going to have a detention pond and a retention pond in the Industrial Park and that is really all they lack as far as the plans. Then they will go in and ask for the permits. Mr. Vest said they advised that they should be ready to go out for bids in two to three weeks for the streets, water and sewer, etc. Mr. Vest advised that the goal is to complete that Paris Economic Development Corp. July 23, 2003 Page 5 by the fall, but it depends on the bids and what kind of prices they receive. He said there is a small amount of surveying that is needed. They have been working with Shawn Napier, the City Engineer, and they already have the locations for the water and sewer lines, but over on Campbell Street and the north - south street, which is about 34th Street, how they are going to bring that to the Park is not resolved yet and that is why they will be needing two or three more weeks. Mr. Vest discussed the C-Tech Company with the Board and advised that they were doing good. They have hired five people and had an enormous number of applicants. Resolution No. 2003-012, setting the monthly meetings of the Paris Economic Development Corporation for 4:00 0' clock P.M. on the following dates: August 20, 2003; September 17, 2003; October 22, 2003; November 19, 2003; December 17, 2003; January 21, 2004: February 18, 2004; March 17, 2004; April 21, 2004; May 19, 2004; June 23, 2004; and July 21, 2004, was presented. A motion was made by Director Severson, seconded by Director Dunn, for approval of the resolution. The motion carried unanimously. President Wall announced at 4:24 P.M. that the Board would go into executive session in accordance with Sec. 551.087 of the Open Meetings Act to discuss possible incentives, pending negotiations, and commercial or financial information from a business prospect. At 4:38 P.M., President Wall declared the executive session closed and the Board went back into open session. Paris Economic Development Corp. July 23, 2003 Page 6 There being no further business, a motion was made by Director Dunn, seconded by Director Severson, to adjourn the meeting. The motion carried 5 ayes, 0 nays. DON WALL, PRESIDENT ATTEST: MATTIE CUNNINGHAM, CITY CLERK