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<br />Tax abatement may only be granted for additional value of eligible Property <br />improvements made subsequent to and specified in an abatement agreement between the City <br />and the Property owner or lessee subject to such limitation as the City may require. The <br />additional value must exceed any reduction in the fair market value of other property of the <br />owner already on the tax role with the jurisdiction of the City. Change in appraised value does <br />not qualify for abatement except in an instance where a previously vacant Authorized Facility <br />is utilized. Value added to the tax rolls must come from actual capital expenditures. <br /> <br />The negotiation of tax abatement contracts will be conducted by the Paris Economic <br />Development Corporation, in conjunction with the City Manager or designee to the Tax <br />Abatement Committee. In determining where and how tax abatement will be utilized, the Tax <br />Abatement Committee will examine the potential return on the public's investment. Return on <br />public investment will be measured in terms of (i) Jobs created, (ii) Jobs retained in cases of <br />existing Employers within the City, and (iii) broadening of the tax base, and expansion of the <br />economic base. <br /> <br />A property owner and/ or lessee shall be eligible for tax abatement only upon the <br />following terms and conditions: <br /> <br />a) If the Property involved is an Authorized Facility. <br /> <br />b) If the Property involved is a Historic Property. In the City Historic Districts there are <br />certain commercial and residential tax exemptions allowed. Exterior improvements in the <br />historic districts are allowed at 100% for seven (7) years with a minimum investment of $5,000 <br />for residential property and $10,000 for commercial property. New residential construction <br />requires a minimum investment of $100,000 to be considered for a three (3) year 100% <br />exemption. New commercial construction requires a minimum investment of $200,000, for a <br />100% tax exemption for three (3) years. <br /> <br />c) If there will be the creation of new value. Abatements may only be granted for the <br />additional value of eligible Real and Personal Property improvements, subject to such <br />limitations as the City may require. Real Property tax abatement may be granted only to the <br />extent that its value for each year of the agreement exceeds its value for the year in which the <br />agreement is executed. <br /> <br />d) If there will be new Authorized Facilities created, or if existing Authorized Facilities <br />will be improved for purposes of modernization or expansion. <br /> <br />e) Eligible Property. Abatement may be extended to the value of buildings, structures, <br />fixed machinery and equipment, site improvements, tangible personal property, and that office <br />space and related fixed improvements necessary to the operation and administration of the <br />Authorized Facility; provided, however, that inventory or supplies shall not be eligible for <br />abatement. Eligible property for which abatement may be granted includes nonresidential real <br />property and/ or tangible personal property not located on the real property at any time before <br />the abatement agreement becomes effective. <br /> <br />4 <br />