16 - Chapter 380 Retail Economic Development Program

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EXISTING CHAPTER 380 POLICY—TO BE REPLACED BY NEW PROGRAM rax. Abateriuneints Section I. Criteria Any application for an ad valorem tax abatement shall be reviewed and approved or disapproved by the Paris City Council. In the review process, the council will, if applicable, consider the recommendations of the Paris Economic Development Corporation and/or the Lamar County Chamber of Commerce. Considerations will be based on the same criteria as for development grants, as described above in "Economic Development Grants, Loans, and Other Incentives. Section 1. Criteria", as well as a com-parison of the use of abatements to that of other potential incentives. Section II. Value of the Abatement The amount of the abatement will be determined by the city council based on the merits of the project including, but not limited to, the factors referenced above, and the following specific economic considerations: • total capital investment, in both real and personal property; • added employment and types thereof, and • generation of tax revenues, both direct and indirect. Abatements may be granted only for the additional value of eligible property improvements made subsequent to and listed in the executed tax abatement agreement. Target thresholds are established as expected qualifying levels for abatement consideration as indicated in paragraphs A and B as follows: A. New Businesses. The project must be reasonably expected to produce an added value of $2.5 million in real and personal property improvements within the City of Paris; or to create a minimum of 100 full-time jobs with an average annual salary of at least $35,000; or to generate annual sales tax revenues to the city of at least $80,000. B. Expansion or Modernization of Existing Businesses. The project must be reasonably expected to produce an added value of $1.5 million in real and personal property improvements within the city; or to create a minimum of 50 full-time jobs with an average annual salary of at least $35,000; or to generate additional annual sales tax revenues to the City of at least $50,000. Section III. Term of Abatement An abatement may be granted for a maximum of ten years. The term of the abatement may be granted for a lesser number of years depending upon the anticipated value added to the city. The term of the abatement may also be changed in accordance with the Inspection and Inspection and Verification section of this policy if the applicant fails to comply with the terms of the contractual agreement for the abatement originally granted. Section IV. Inspection, Verification and Abatement Modification The City of Paris shall maintain its right to: (a) require the submission of an annual certification of compliance for the property receiving abatement; (b) conduct an on-site inspection of the project in each year during the life of the abatement to verify compliance with the terms of the agreement; and (c) reduce or eliminate the granted tax abatement if the applicant has failed to comply with the requirements of the abatement agreement.