2020-007 - TIRZ Final Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number One

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1. INTRODUCTION 1_1 Authority and,,Nf1.L9„sp, The City of Paris, Texas, a Texas incorporated home rule municipality (the City), has the authority under Chapter 311, Texas Tax Code, as amended (the "Act") to designate a contiguous or noncontiguous geographic area within the corporate limits or extraterritorial jurisdiction ("M") of the City as a tax increment reinvestment zone to promote development of the area if the governing body of the City (the "City Council") determines that development would not occur solely through private investment in the reasonable foreseeable future, that the zone is feasible, and that creation of the zone is in the best interest of the City and the property in the zone. The purpose of the zone is to facilitate such development by financing the costs of public works, public improvements, programs, and other projects benefiting the zone, plus other costs incidental to those expenditures, all of which costs are authorized by the Act. 1.2 _ ,ligibilft„ , Rei. uireme„nts, An area is eligible under the Act to be designated as a tax increment reinvestment zone if the area arrests or impairs the sound growth of the City because the Zone is predominately open and undeveloped and has the need for public infrastructure to attract new commercial and residential activity to the Zone for the purpose of providing long term economic benefits for all taxing units in the Zone. The City cannot, however, designate a zone if more than 30% of the property in the proposed zone, excluding property that is publicly owned, is "used for residential purposes” (defined by the Act as follows: ... property is used for residential purposes if it is occupied by a house having fewer than five living units...") or if the total appraised value of taxable real property in the proposed zone and in existing reinvestment zones exceeds 50% of the total appraised value of taxable real property in the City and in industrial districts created by the City. 1.3 The Proposed Zone. The City is considering the creation of a tax increment � reinvestment zone to be known as "Reinvestment Zone Number One, City of Paris, Texas" (the "Zone") that will include approximately 2176 acres (including public right- of-way) which includes large generally open areas in the north, south, northwest and southwest areas of the City plus a portion of the downtown area, all of which is located within the City's corporate limits. The property meets the eligibility requirements of the Act. The property substantially impairs or arrests the sound growth of this area of the City because of its challenges to development with the lack of public amenities and enhancements. There is a need for economic incentives to attract development and redevelopment in the Zone for the purpose of providing long-term economic benefits including, but not limited to, increased real property tax base for all taxing units in the Zone, Increased sales and use tax, and increased job opportunities for residents of the City and County. If the Zone is created and the public works, public improvements, programs and other projects are financed as contemplated by this Preliminary Plan, the City envisions that the property will be