2011-035 ORD AUTHORIZING CITY OF PARIS TO PARTICIPATE IN TX ENTERPRISE ZONE PROGRAM

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Exhibit A Paris, Texas Financial Incentives (Cash, Tax Abatements, Exemptions and Related Programs) wit~ ~6tlowiri g ~ ~e=the f - ~~'aros to ~uaxim 13~`F ~f'~ .,1C=i~tt+nin.:~:.~: _ 111AnCwi for or Pro-Business Climate Ta$ Abatements Local Cash Incentive for Job Creation Industrial Dev. Bonds Skilis Deveiopment Fund Enterprise Zone Freeport Law Taz Eaemptions Financial Services SBA and Other Loan Programs I ?u~iua~: ~µra1[ovvlil : i11 Because of a pro-business athtude, Te~s has limited the number of state controls and taxes regulating the activities of business. Texas is a right-to-work State, and has no personal or co orate income tax, nor a state ro e ta~c. The City of Paris has a proven track record of negotiating tax abatements for up to 10 years for new and expanding industries. In addition, Lamar County and paris Jr. College will consider local tax abatements for projects with significant job creation and private capital investment. The citizens of Paris adopted a'/ cent sales tax as an incentive assistance program to facilitate industrial locations and expansions. This program is administered directly by the Paris Economic Develo ment Co oration. PEDC has a history of providing industrial development bonds as a viable alternative for financin industrial ex ansion and construction. An incentive to relocating or expanding businesses through Texas community and technical colleges and workforce boards to provide customized assessment and training services to business in a timel , efficient and res onsive manner. Depending on the exact site location, Paris is a qualified Enterprise Zone (EZ). If your development or revitalization project is located in the EZ, the City of Paris can approve partial or deferred payment of sales and use taxes for qualified purchases, leases, or rentals. Specifically, the EZ provides sales and use tax rebates on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, and electricity and natural gas purchases. The EZ also provides priority job training, and other preferential treatrnent on state and federal programs. The taac refund is $2,000 for each permanent job the project creates or retains during the five year designation period. Qualifying projects may also be eligible for franchise tax reduction, property tax abatement up to 100% of the estimated local tax increase to be levied on the proposed property improvements for a term not to exceed ten (10 ears, and other regulatory relief. Article VIII, Section 1 of the Texas Constitution has been amended to allow real and personal properly to be tax-exempt (city, county and school districts.) All goods, wares, merchandise, other than tangible personal property (inventoty) acquired in or imported into Texas to be forwarded outside this state, which is detained for storing, assembling, manufacturing, processing, or fabricating in Texas for 175 days or less, may be tax exempt Local financial services companies m Pans and Lamar County are committed to the economic growth of the region through aggressive commercial and industrial development. Paris is currently served by seven commercial banks, two savings & loan associations, and has access to mort a e bankers, and other creative fmancial services. Small business loans are available through the SBA 504 program. Up to 40% of total cost can be provided in the form of subordinate debt to SBA for most fixed asset projects at interest cost of 2 to 3% below market for periods of 15-25 years. This type of financing can provide 90% of the long-term financing needs of a small business. Also available axe the SBA 7(A) Loan Guazantee program, the FmHA, paris' local Revolving Loan Fund, various programs of the ArkTex Council of Governments, and the Texas Leverage Fund. (Updated 8-4-11)