08-A Tax Abat Agree-Paris Wareh - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider a resolution authorizing the execution of a tax abatement agreement with Paris Warehouse 107, Inc. BACKGROUND: Paris Warehouse 107, Inc. forwarded to the Paris Economic Development Corporation on August 20, 2004, an application for tax abatement and reinvestment zone designation. The City staff, as a result of such application, prepared the customary tax abatement agreement in customary form for approval of the tax abatement. The agreement contains all State-mandated requirements for a taac abatement agreement plus supplemental requirements imposed by the City's Guidelines and criteria or by the City's legal staff. DESCRIPTION: The enclosed agreement would grant a tax abatement to Paris Warehouse 107, Inc. for new construction in the amount of $5,245,000.00, the taxes to be abated on such improvements for a period of seven (7) years. An additional condition of the grant of the tax abatement is the creation of thirty (30) new jobs. The agreement contains the customary other provisions, including a description or means of identifying all proposed personal and real property improvements subject to the tax abatement, authorizing a means of access and inspection to verify that the improvements have been made, a provision for recapturing property tax revenue lost if the basic contract obligations are not met, a requirement for annual certification of compliance by the company, termination clauses, a clause allowing the company to assign the agreement to subsidiaries or parent corporations without approval of the City, but requiring approval for any other kind of assignment, and general clauses dealing with the administration of the agreement. RECOMMENDED ACTION: Consideration of and approval of the resolution authorizing the execution of the tax abatement agreement with Paris Warehouse 107, Inc. STAFF CONTACT: Larry W. Schenk, City Attorney, and Gary Vest, Director of Economic Development of the Paris Economic Development Corporation. COST: Abatement of taxes on a$5,245,000.00 improvement for a period of seven (7) years. SCHEDULE: Construction of the new improvements is anticipated to begin very soon after all tax abatements for which the company is eligible are approved. LOCATION: The location of the property to be abated is located at the existing Paris Warehouse 107, Inc. facility, 2300 13t'' S.W., Paris, Texas. SUPPLEMENTAL MATERIALS: See attached tax abatement agreement and accompanying approval resolution. COUNCIL DATE: Consider for final approval at the City Council's regular meeting of Thursday, October 7, 2004.