14 - Huhtamaki Nomination for Enterprise Project

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'-W",RIST [1ffM0H'0WC" 015VELOPMENT con01INWITION TO: Mayor, Mayor Pro Tem & Paris City Council CC: Grayson Path FROM: Maureen Hammond, Executive Director of Paris Economic Development Corp. SUBJECT: Huhtamaki DATE: October 17, 2023 BACKGROUND: Item No. 14 As you know, the PEDC recently supported and announced the expansion of Huhtamaki. The expansion project anticipates creating 80 new jobs, increasing the existing workforce of 200 to nearly 300 jobs total. The project is also set to drive an estimated investment of 85 million into our local economy, positioning it as one of the most significant capital expansion projects in Paris within the last decade. As part of Huhtamaki's incentive package, we are supporting and assisting with the application to Texas Enterprise Zone. ("TEZ"). The Texas Enterprise Zone (TEZ) Program is a discretionary, economic and business development incentive used by the State of Texas, in partnership with local communities, to stimulate investment and job retention and creation. Projects are eligible for refunds of the state -portion of sales and use taxes paid on taxable purchases made for the designated facility for a five-year period. No local taxes are refunded or abated under this program, thus there is no cost to the local jurisdiction. To obtain an Enterprise Project designation, a qualified business must first be nominated as an enterprise project by the local jurisdiction (county or city). Following a nomination, the qualified business must submit an application for competitive review by the Governor's Office. Fortunately, the City of Paris has previously issued a Nominating Ordinance in 2016 to participate in the TEZ program and designate its first project. As such, any subsequent designation by the City of Paris only requires a Nominating Resolution to the original Nominating Ordinance in order for this requirement to be met. Huhtamaki's consultant and Stephanie Harris have been working on the resolution that will be submitted or attached to my memo. STATUS OF ISSUE: We are seeking the City Council of the City of Paris to approve and submit a Nominating Resolution in support of Huhtamaki's application for the Texas Enterprise Zone program. RECOMMENDATION: Accept the Nominating Resolution in support of Huhtamaki's application for the Texas Enterprise Zone program.