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677 <br /> <br /> Minutes of Special Meeting PEDC <br /> October 17, 2001 <br /> Page 2 <br /> <br /> withdrawn their request for all of the incentives except the tax abatement. Mr. <br /> Vest pointed out that one of the concerns that the PEDC had was about the <br /> financing. His understanding is they have 90 percent financing from HUD, <br /> which means they will have to do 10 percent of the financing locally. Mr. Vest <br /> advised that the PEDC has not done this type of tax abatement in the past. He <br /> said the other abatements that have been given were for industrial type facilities. <br /> He stated that it is allowed under state law because it is in an enterprise zone, <br /> and there is goodwill that could be established. Mr. Vest said he did not know <br /> if the City Council would go through with this tax abatement because of the <br /> perception of East and West Paris. He advised that this would be a significant <br /> addition to West Paris. Mr. Vest further advised that there are other things that <br /> they need to look at if the PEDC is going to recommend a tax abatement of this <br /> type. Mr. Vest said his recommendation to the Board would be to do the tax <br /> abatement on a phase-in basis for this type project. He said they would give 80 <br /> percent abatement for yearS one through three; year four would be reduced by <br /> 25 percent; and then continue to reduce the tax abatement for years five, six, <br /> seven. After seven years the property would be on the tax roll at one 100 <br /> percent. <br /> <br /> Mr. Vest said that the proposal that he and City Attorney Schenk have been <br /> working on is still not refined, and it will come to the Board as soon as it is <br /> finished. He said the recommendation of this type of tax abatement phase-in <br /> would be based on the amount of capital investment and job creation. He said <br /> for this project, the Board and Council could expect 2.7 million dollars for <br /> capital investment and 25 employees with a $400,000.00 annual payroll, so it <br /> would be a very significant investment for the area of town where it would be <br /> located. Mr. Vest further advised that the PEDC can only make a <br /> recommendation to the City Council. <br /> <br /> Director Guest suggested that the PEDC adopt a policy for use in the future. <br /> <br /> Mr. Gary Kammer came forward speaking on behalf of their request for a tax <br /> abatement. Mr. Kammer said that they had chosen West Paris to attempt tO <br /> develop the area. Mr. Kammer advised that he was not aware of the enterprise <br /> <br /> <br />