17-ECONOMIC DEVELOPMENT - AD VALOREM TAX ABATEMENT POLICY

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(h) Modernization - means the replacement and upgrading of existing facilities which increases the productive input or output, updates the technology or substantially lowers the unit cost of the operation. Modernization may result from the construction, alteration or installarion of buildings, structures, fixed machinery or equipinent, but shall not include reconditioning, refurbishing or repairing. (i) Reinvestment Zone - means an area within the corporate city limits of the City of Paris, Texas designated in accordance with the Act. Section 3. Availability of Tax Abatements. (a) Tax abatement is available for new facilities, structures, and equipment and for the Expansion or Modernization of existing facilities and structures. (b) As provided in the Act, abatement may only be granted for the value of Eligible Property listed in an agreement between the Ciry and the property owner and lessee (if required), subject to such liinitations as the City may require and to the following limitations. In the case of real property that is Eligible Property, an Agreement may provide for exemption of the real property in each year covered by the Agreement only to the extent its value for that year exceeds its value for the year in which the Agreement is executed. In the case of tangible personal property that is Eligible Property, and Agreement may not provide for the exemption of tangible personal property that is located on the real property at any time before the period covered by the Agreement. (c) Tax abateinent is not available for Ineligible Property. (d) Upon determination that tax abatement should be offered to the Applicant, the value and tenns of the abatement will be detennined by the City on a case-by-case basis. (e) Abatement will be granted effective with the first valuation date immediately following the date of execution of the Agreement. The period of abatement may not exceed ten (10) years including the construction period. Section 4. Tax Abatement Agreements. (a) The City council may not enter into a tax abatement agreement unless it finds that the terms of the Agreement and the property subject to the Agreement meet these Guidelines and Criteria. (b) An Agreement must contain the following provisions: (1) A list of the kind, number and location of all proposed improvements of the Eligible Property; (2) Applicant shall provide access to and authorize inspection of the Eligible Property by Ciry or the City's employees or agents to insure compliance with the specifications and conditions of the Agreement; 2 62