2017-021 - Addendum to Tax Abatement Agreement with JS Baking, LLC

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Paris, Texas Economic Development Corporation POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT 3. The amount of the abatement shall be based upon a percentage (0 to 100 %) of all or a portion of the eligible property within the authorized facility. 4. Abatements may only be granted for the additional value of eligible real and personal property improvements made pursuant to and listed in the agreement between the City and property owner and/or lessee, subject to such limitations as the City may require. 5. Real property tax abatement may be granted only to the extent that its value for each year of the agreement exceeds its value for the year in which the agreement is executed. 6. if a modernization project includes the replacement of improvements within an authorized facility, the value eligible for abatement shall be the value of the new unit(s), less the value of the replaced unit(s). Abatement The criteria used to evaluate a proposed project application for abatement includes, but is not Evaluation limited to: Criteria 1. The dollar amount of the increase in the tax roll. 2. The number of jobs created or retained by the employer involved. 3. The possible effect on attracting other taxable improvements into the City. 4. The nature of, and overall effect on the City. 5. The effect on the safety, health, and morals of the City's residents. 6. Any substantial long -term adverse effect on the provision of City services or its tax base. 7. Meeting all relevant zoning requirements. 8. Consistent with the comprehensive plan of the City or County of Lamar. 9. The types and cost of public improvements and services (water and sewer main extensions, streets and roads, etc.) required of the City. 10. The types and values of public improvements to be furnished by the applicant. Economic To be eligible to receive tax abatement, the planned improvements: Qualification 1. Must be reasonably expected to increase the appraised value of the property. 2. Must be expected to prevent the loss of employment, or assist in the retention or creation of jobs in the City during the term of the agreement. 3. Should not be expected to solely or primarily have the effect of merely transferring existing employment from one part of the City to another without demonstration of increased future investment (dollars or jobs) or unusual circumstances whereby without such a move employment is likely to be reduced. 4. Must be necessary because capacity cannot be provided efficiently utilizing existing improved property when reasonable allowance is made necessary improvements or relevant governmental actions. Taxability During the term of the agreement, taxes shall be payable as follows: 1. The base year of eligible property as determined each year by the Lamar County Appraisal District, shall be fully taxable. 2. The additional value of eligible property above the base year value shall be taxable in the manner described in the agreement. 3. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the real and personal property comprising the reinvestment zone. 4. Each year, the employer, the company or individual receiving abatement pursuant to an agreement shall furnish the assessor with such information as may be necessary to determine the amount of any abatement. 5. Once such value has been established, the Chief Appraiser shall notify the affected jurisdictions, which levy taxes on such property and also notify the Paris EDC. 6. The employer, owner or lessee of eligible property requesting tax abatement within a reinvestment zone shall, prior to the commencement of eligible property improvements, agree to expend a designated sum of money and to create or retain a certain number ofjobs, or annual payroll as further defined below.