14 - Economic Development Agreement and Tax Abatement AGreement with Essential Housing Corporation

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Item No. 14 Memorandum TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Marc McKinney 5 In 5 Infill Development Agreement DATE: January 10, 2022 BACKGROUND & DISCUSSION For several months now City Staff has been working with Mr. Marc McKinney an interested builder/investor during the development of the new program initiative to encourage and incentivize new infill development housing in the core area of the City. Mr. McKinney's company Essential Housing Corporation, LLC has developed and built many home across North Texas, most recently in Bonham Texas, and has been really attracted to begin building new homes in Paris with the opportunity he has recognized with this program. He proposes to construct 7 new single-family homes on current City Trustee tax foreclosure lots which have been vacant for many years on the 1400 blocks of Fitzhugh and 10"' Streets NE. His list of interest also includes other eligible tax foreclosure properties that have been prioritized with our Tax Attorney Mr. Tracy Pounders, to be brought forward for future delinquent tax sale which may result in the non -sale of the property and therefore making them eligible trustee properties that may become available inventory lots for use in the 5 In 5 Infill Development Program being approved by the City Council. If the agreement is approved by City Council on Monday night, City Staff with the assistance of Mr. Tracy Pounders, will work to present the Low Cost $1 lot sale incentive to the other 3 taxing jurisdiction boards to complete the requirements of the #1 incentive under this program. This is a brand new program for the community and we will learn from the initial steps in the process and how to make the program process more efficient over time as we go. Attached please find the draft agreement between the City and Mr. McKinney's development company, which includes attachments and examples of the new single-family owner occupied homes Mr. McKinney proposes to construct on these properties. The agreements spell out all the requirements under the 5 In 5 Infill Development Program Guidelines. He plans to attend the meeting on Monday night and present to the Council. Recommendation Approval of the 5 In 5 Infill Development Agreement with Essential Housing Corporation, LLC is strongly recommended.