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Lamar County — Paris Economic Development Plan <br />Employer Incentive Program <br />Primary target industries are among the most desirable and sought after in the United <br />States. Since there are a limited number of businesses that meet this profile, and since they <br />contribute a significant amount of wealth to their local economies, many communities are <br />offering financial incentives to attract and retain them. In order to compete in this marketplace, <br />Paris will likewise have to offer various types of financial and non - financial inducements, such <br />as expedited permitting, regulatory relief, low - interest loans, employee training, and property tax <br />refunds, to qualified companies. <br />Used wisely, competitive business incentives for companies creating high -wage jobs can <br />act as a catalyst for economic development efforts, facilitate a pro- business climate, and ensure a <br />trained and diversified workforce. It must be recognized, however, that without a dependable <br />funding source and a workable implementation methodology, any incentive program will be <br />ineffective. To ensure its effectiveness, local governments must consistently fund and implement <br />the incentive program over time, which will require political leadership, a reliable source of <br />funding, and an ongoing monitoring system. <br />To assist with this process, an incentives matrix, or mathematical screening process that <br />can be used to pre - qualify a company for particular incentives, has been created. Table 1 -1 <br />provides an example of criteria that could be used to determine what incentives should be <br />offered. Each criterion evaluates a business characteristic that can be measured in numerical <br />units, such as number of workers, dollars, square feet, or percentage points. For example, a <br />company may anticipate creating 300 new jobs that will have an average salary of $47,000, be <br />housed in a 100,000- square -foot building, and conduct business activity that is 100 percent <br />primary in nature. <br />Table 1 -1 <br />Example of Weighted Criteria to be Used in the Incentives Matrix <br />Maximum <br />Minimum <br />Weight <br />Primary employer <br />100% <br />50% <br />20 <br />Wages to be paid (% of area average) <br />150% <br />110% <br />20 <br />Square feet of building per worker <br />250 <br />500 <br />10 <br />Floor to area ratio <br />65% <br />25% <br />10 <br />Workers per acre <br />100 <br />25 <br />10 <br />Wage impact jobs <br />50 <br />10 <br />20 <br />Real property tax per acre (current) <br />$245000 <br />$89000 <br />5 <br />Real property tax per acre (new money) <br />$2411000 <br />$81,000 <br />20 <br />Renovation impact points <br />200% <br />50% <br />20 <br />Payroll per acre <br />$5,230,464 <br />$958,918 <br />10 <br />Total Weight <br />145 <br />Paris Economic Development Corporation Page 40 <br />