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673 <br /> <br /> Paris Economic Development Corp. <br /> Sept. 12, 2001 <br /> Page 2 <br /> <br /> abatement application from S. I. Management, Inc. And KG Properties, <br /> LLP. <br /> <br /> President Rhodes advised that a few months ago it was agreed that all tax <br /> abatement requests would come through the Paris Economic Development <br /> Corporation before they go to the City Council. Mr. Rhodes said this is our <br /> first request. <br /> <br /> Gary Vest, Executive Director of the Paris Economic Development <br /> Corporation, reported that this request is for an Assisted Living Center, <br /> which will be located at 1746 Bonham Street. He said it would employee <br /> twenty-five people, and will have a $400,000.00 payroll. They will have a <br /> capital investment of $2,744,000.00. Mr. Vest said normally this type of <br /> project would not be considered for a tax abatement, but the Assisted <br /> Living Center will be within the enterprise zone, and would be eligible for <br /> tax abatement under the state tax abatement laws. Mr. Vest advised that <br /> the Paris Economic Development Corporation's guidelines and procedures <br /> is to give tax abatements to manufacturing and warehouse distribution <br /> facilities. Mr. Vest said there would be goodwill to be gained from a new <br /> project in West Paris. Mr. Vest advised that the first thing that this <br /> company asked for was a one hundred percent seven year tax abatement. <br /> Mr. Vest said that he and the City Attorney have been working on a tax <br /> abatement policy which has not been presented to this board or the City <br /> Council. It has a scale that calls for a graduated tax phase-in. He said if <br /> this board makes a recommendation to the City Council, his suggestion <br /> would be that they go in with an eighty percent abatement for the first <br /> three years and reduce that by twenty-five percent for the next four years <br /> so that after seven years they will be paying one hundred percent of the <br /> tax. <br /> <br /> Mr. Vest said the company has asked for a one hundred percent refund of <br /> Local Sales and Use Tax. This is the first time this has been requested. <br /> Mr. Vest advised that in order for the PEDC to do this, they would also <br /> have to receive enterprise designation to qualify for this request. He said <br /> <br /> <br />