96-060 ORD NOMINATING AREA AS ENTERPRISE ZONE PURSUANT TO TX ENTERPRISE ZONE ACT

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EXHIBIT B Local Business lncentive: Tax Abatement 1. Proposed Incentive: The City of Paris proposes the offering of tax abatement to local qualified businesses. 2. Description uf the Incentive• The City of Paris has agreed to abate the increased valuation of property taxes on real property developed, redeveloped, or improved to qualitied businesses in the enterprise zone. The amount of tax abated on any increment in value addeci to the ad valorem value of the property will be determined by the following objective criteria. A. Economic Development Policy 1. Ob,jective Requirements. a. The business must have a minimum of 10 new full-time positions, with full-time being defined as at least 1040 hours annually, or b. Add at least $100,000 ad valorem value to the current value of the business. c. Must make 1,000 points if a new inclustry or 250 points if existing industry making an expansion. Points are awarded in the following manner: 1) Locating in an abandoned huilding - 200 points. 2) For each newly created full-time position on the payroll - 7 points. 3) For each newly created full-time position on the payroll that is occupied by a handicapped or economically disadvantaged person - an aciditional 7 points to the already awarded 7 points. 4) For each $10,000.00 in capital investment generated -10 points. 5) For each $20,000.00 in annual payrull - 5 points. B. Abatement Eligibility. Abatement percentages will be awarded depending upon points collected in the following categories tor new and expanding-existing industries: Points Year 250 to 600 601 to 1.000 1,001 or more 1 100 % 100 % 100 % 2 75 % 100 % 100 % 3 50 % 100 % 100 % 4 25 % 75 % 100 % 5 10% 50% 75% 6 0% 25% 50% 7 0% 10% 25% Rehahilitation will he given pretierence over new construction. 5