2006-042-RES-Tax Abatement Incentives

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2) Must be expected to prevent the loss of employment, or the retention or creation of Jobs in the City during the term of the agreement; 3) Should not be expected to solely or primarily have the effect of merely transferring existing employment from one part of the City to another without demonstration of increased future investment (Dollars or Jobs) or unusual circumstances whereby without such a move employment is likely to be reduced; 4) Must be necessary because capacity cannot be provided efficiently utilizing existing improved Property when reasonable allowance is made necessary improvements or relevant governmental actions. i) Taxability. During the term of the agreement, taxes shall be payable as follows: 1) The Base Year of eligible property as determined each year by the Lamar County Appraisal District shall be fully taxable; and 2) The additional value of eligible property above the Base Year Value shall be taxable in the manner described in the agreement. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the Real and Personal Property comprising the Reinvestment Zone. Each year, the Employer, the company or individual receiving abatement pursuant to an agreement shall furnish the assessor with such information as may be necessary to determine the amount of any abatement. Once such value has been established, the Chief Appraiser shall notify the affected jurisdictions which levy taxes on such Property and the Paris Economic Development Corporation. The Employer, owner or lessee of eligible Property requesting tax abatement within a Reinvestment Zone shall, prior to the commencement of eligible property improvements, agree to expend a designated sum of money and to create or retain a certain number of Jobs, or annual payroll as further defined below. V. Tax Abatement for Real Property; Creation of Jobs: Tax abatement may be made available to Employers creating Jobs with respect to an Authorized Facility located anywhere within the City or its extra territorial jurisdiction based on the following: a) To be eligible for any tax abatement, there must be a minimum capital investment in the Authorized Facility of $250,000 and at least ten (10) new Jobs added to the Employer's labor force. b) When an abatement percentage has been agreed upon it shall be granted for years one (1) through three (3); thereafter, there will be a 20% reduction in the original 3ffiOl:ln( percentage abated beginning with year four (4) and a similar reduction of 20% in each of the next 6