2025-026 - Authorizing an Economic Development Agreement and Tax Abatement Agreement with EXL Capital Group (Jakir Malek) – 5 in 5 Housing Infill Development Program

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PL -INFO -0007 (rev 05/12/25) The abatement will become effective on January 1st of the year following issuance of a Certificate of Completion following final construction inspection. As provided in the Act, a tax abatement may only be granted for the value of the Residential Improvements which exceed the base year value of the property and which are listed in an Agreement between the City of Paris and the applicant, subject to such limitations as the City of Paris may require. The base value will be set as of January 1st of the year in which the Agreement is executed. Upon completion of construction, the Applicant shall provide a copy of all material and: fixture purchase invoices to prove that those materials and: fixtures were purchased locally within the City of Paris when possible. The tax abatement is available only for improvements made after the execution of the Agreement. The Agreement may not be approved by the City Council until at least thirty (30) days after notice of the consideration and possible action on the Agreement has been posted. Reduced Fees for Building Plan Review and Permitting -The Applicant will be entitled to reduced rates for building plan review and permit fees as referenced in the Incentive Table. Reduced Fees for Water & Sewer Tap Labor - The Applicant will be entitled to reduced rates for water and sewertap laborfees, where required by the Public Works Department, sas referenced in the Incentive Table for all new dwelling units under agreement with the City. Claw Back Provision - The Applicant who enters into an Agreement with the City of Paris shall construct new housing dwelling units on one (1) or more parcels within five (5) years from the effective date of the Agreement, or a within a shorter time if agreed to by the parties and reflected in the Agreement, or the City shall have the right to automatically take back any undeveloped parcel under the terms of the agreement and transfer of the property by all taxing entities. This shall be recorded with or as a part of the deed as a right of reversion for all uncompleted construction lots deeded underthis agreement against the property. The Applicant may request approval of an extension for such failure to construct a new residential dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to another individual except by prior approval and re -assignment of the parcel(s) and approval of a new agreement by the City Council. Failure to meet the requirements of constructing the agreed upon new dwelling -units within the required period will result in a reversion of all parcels upon which Residential Improvements have not been constructed and completed to the City and will result in the Applicant being ineligible to participate in this program in the future. As a further claw back provision, and in accordance with Texas Tax Code Sec. 312.205, the Agreement shall provide for recapturing property tax revenue lost as a result of the agreement if the owner of the property fails to make all the Residential Improvements as provided in the Agreement regardless of how many dwelling units applicant builds. Compliance with all other City Requirements - The Applicant shall be fully responsible for compliance with all zoning, subdivision platting, and building code requirements as may specifically pertain to the subject parcel(s) under the approved Agreement. The applicant shall be fully responsible for all such costs which may include, but not be limited to: Zoning Changes, Special Use Permits, Variances, Platting and Surveying Costs, Plan Preparation, and Building Permit Fees. Page 5 of 7 /J i � / ' � / / ,,,ii: / .ro a ,,./ .:,. / ;iii ./ / i ' /, / l//,///.,/ /i „ ///,/i/ , /,i,iiii/Oaa///////%iia/ iii/, %%/ / % ///%/ //, ////% ii / „/., ,, ///J,, / / f / ///// /// //, // , // // // / / /