06/08/2010 MINUTESParis Economic Development Corporation
Meeting Minutes
June 8, 2010
Board Members Staff Steve Gilbert
Present: Dan Smith Present: Shannon Barrentine
Rick Poston
Chad Brown
Pike Burkhart, Sr.
Ex- officio Members
Present: Mindy Moree
Pam Anglin
Will Beard
Kent McIlyar
Kevin Carruth
Edwin Pickle
Guest
Present: Connie Beard, Paris News
Jordan Harper, COO
Harrison, Walker & Harper
Jennifer Veal, Pres. of Finance &
Future, Harrison, Walker & Harper;
We Pack; We Stow & Chisum Steel
Fred Green, Director
Red River Region Business
Incubator
Dan Smith, President, called the meeting to order at 4:02 p.m.
Minutes from the May 13, 2010 meeting were approved, as submitted, by a motion from Pike
Burkhart; seconded by Chad Brown. Motion carried.
Financial reports for May 2010 were not available.
Steve Gilbert presented his Director's Report to the Board. He told them that if they had any
questions to get with him. He then covered the following project update and activity report:
a) Turner Industries support trip to Baton Rouge, Louisiana was very successful. He was
pleased with the letter published in The Paris News from Mr. Toups. A follow -up meeting with the
group from Paris will be in the near future. It's a great group of people committed to moving
forward for the community. PISD requested 3 mig welding units for High School training at a cost
of $6,000 to $9,000 be included in the Retention Strategy implementation.
b) Airport Comprehensive Plan — Draft report under review. Reviewing existing airport
land/hangar lease agreement with members of Airport Advisory Board. Pike Burkhart asked about
the status of the Airport Comprehensive Plan. Steve stated that the PEDC and the City of Paris are
advocating that the runway should remain the same width. Steve had sent a letter from PEDC since
major companies purchase newer aircraft wider runways are needed. Texas Department of
Transportation advocated no increase in runway width in a meeting over a year ago.
C) Daisy Dairy — Develop and approve final incentive agreement with PEDC. Dan Smith
asked what was the status of development with Daisy Dairy. Kevin Carruth said the water line
project should begin on Monday, June 14`x'. Steve said he had talked with Kent McIlyar and David
Sokolsky regarding the incentive agreement for year 6 through 10. Working on a draft of the
incentive agreement based on a letter of understanding. Still need to get the agreement finalized
with the attorneys.
PEDC Board Meeting Minutes
June 8, 2010
Diversity Compact — Steve had invited Rev. James Price to attend the meeting today, but he had a
conflict and couldn't make it. The Compact will be pro- active /pro- business conunitment to
diversity — no written document yet. This effort will tie back to the Turner Retention Strategy
resulting in a clear statement as a community regarding diversity.
Fred Green, Director of the Red River Region Business Incubator, reported that his Community
Awareness Program had been in full force by speaking to both Rotary clubs, Kiwanis, Lions club and
Industrial Managers. He is also beginning a "Logo -You Go" contest to get ideas submitted for an
incubator logo. The winner will get two tickets to the Texas vs. Oklahoma game in October sponsored by
Liberty National Bank -Carl Cecil. June 29th will be a Social Networking Conference sponsored by the
Small Business Development Center. He has visited with all nine lending institutions (stakeholders) in
Lamar County. He will conduct a training of current Small Business Administration (SBA) Loan
procedures with these stakeholders in the near future. He plans to complete the Incubator Business Plan in
the following week. He also needs an Incubator Advisory Board comprised of Attorney(s), Certified
Public Accountant(s) and various others to participate and give advice to the clients. He plans to tour the
incubators in Tyler and Temple to ask questions and get ideas. He plans to submit a press release once a
month with updates to keep the community and future clients informed.
Discussion and possible action authorizing amendment to existing agreement and passing the
interest savings to Paris Packaging from the issuance and sale of Paris Economic Development
Corporation Sales Tax Revenue Refunding Bonds, Taxable Series 2010. Steve stated that the intention of
refinancing the bonds was to be able to pass on the annual savings to Paris Packaging. Unfortunately, the
Board has never taken official action on this item and that is needed in order to complete the process along
with an amended agreement reflecting the reduction in interest from 7% to 3.75% and an amortization
schedule for the City of Paris Finance Department. Ken McIlyar is working on the amended agreement
and plans to have it for review and approval by the next Board meeting. Steve stated that himself and
Rachel Schory had performed a Business Retention and Expansion (BRE) visit with Paris Packaging in
the past week and they currently employ 170 employees. The Paris facility was built in 1972 and the
company recently acquired their 4th plant branded Paris Packaging located in Houston. They toured the
facility and the company is moving forward with equipment upgrades and is very positive.
Discuss budget highlights and take action on setting date and time for a called PEDC Board
meeting to discuss FY 2010 -11 Budget. Steve told the members present that currently the cash position for
the PEDC is $1.734 million with operating costs around $400 - $450,000 a year. The Revenue carry over
fund balance is $1 million. He will provide a clear budget "picture" of where PEDC is currently and where
PEDC wants to go in the future. The proposed revenue figure from the City of Paris is $1,106,890 but
Steve stated he wasn't comfortable with using that figure. He would rather use a more conservative figure
of $1 million for sales tax revenue with all actual revenues over the estimated amount rolling forward to
improve the PEDC's annual cash position. Steve believes in an "open book" policy regarding budgets. His
proposed budget will be tying together figures from the actual audit of FY 2009 -10, Chamber expenses,
along with reports from the City of Paris producing a very conservative budget. Steve would like to
present the approved PEDC budget to the city council on June 28th, since it is actually due to them by July
1St. Dan Smith made a motion to have a called PEDC Board meeting to discuss the proposed PEDC
Budget for FY 2010 -11 on Thursday, June 24th at 11:00 a.m.; seconded by Chad Brown. Motion carried.
2
PEDC Board Meeting Minutes
June 8, 2010
The board convened into executive session at 4:40 p.m.. pursuant to Section 551.087 and Section
551.072 of the Texas Government Code to discuss and deliberate on the following:
A. Section 551.087 — Economic Development Negotiations
B. Section 551.072 — Real Property
Executive session ended at 6:40 p.m. There was no action taken as a result of executive session.
Pike Burkhart made a motion to adjourn at 6:40 p.m.; seconded by Chad Brown. Motion carried.
Respectfully submitted,
Shannon Barrentine
PEDC — Comm. Dev. Specialist
3