15 - Tax Abatement Agreement for Ametsa Packaging

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Item No. 15 TO: Mayor, Mayor Pro Tem, and City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Tax Abatement Agreement for Ametsa Packaging, LLC DATE: April 24, 2023 BACKGROUND: Ametsa Packaging, LLC ("Ametsa") recently purchased the property and facility 2020 19" NW formerly owned and operated by J. Skinner and intends to convert it to a facility for the manufacturing and packaging of sugar and sweeteners through the installation of specialized high speed equipment, with the possibility of changing product lines or adding product lines at a later date. The attached agreement provides for a minimum capital investment of $3.5 million, with minimum job creation and retention of 15 FTEs with benefits throughout the term of the agreement, although the company estimates that it will create up to 50 new jobs by the end of the first year of operation. The PEDC will be entering a performance agreement with Ametsa as well. The abatement is for 7 years and will be granted on a de-escalating basis: 100% for the first two years, 75% years 3 and 4, 50% for years 5 and 6, and 25% for year 7. The abatement expires on December 31, 2030. STATUS OF ISSUE: Pending City Council approval of tax abatement agreement. BUDGET: Seven year abatement on the improvements set out in the Agreement. RECOMMENDATION: Motion to adopt a resolution approving tax abatement agreement between City of Paris and Ametsa Packaging, LLC in substantial conformance with the attached agreement and authorize the mayor to execute same on behalf of the city,.