2012-072 RES AUTHORIZING CITY TO BECOME ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT

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rv. Tax Abatement Authorized. The City, through its Council, may agree in writing with the owner and/or lessee of taxable Real Property that is located in a Reinvestrnent Zone, but that is not in an improvement project financed by tax increment bonds, to exempt from taxation a portion of the value of the Real Property, or of Personal Property located on the Real Property, or both. The period of the abatement granted under the agreement shall not exceed the term authorized by law. Such agreement will be based on the condition that the owner or lessee of the Property makes specific improvements or repairs to the Property. An agreement may provide for the exemption of the Real Property in each year covered by the agreement only to the extent its value for that year exceeds the Base Year Value. An agreement may provide for the exemption of Personal Property located on the Real Property in each year covered by the agreement other than Personal Property that was located on the Real Property at any time before the period covered by the agreement. Inventory or supplies cannot be abated as Personal Property. Tax abatement may only be granted for additional value of eligible Property improvements made subsequent to and specified in an abatement agreement between the City and the Property owner or lessee subject to such limitation as the City may require. The additional value must exceed any reduction in the fair market value of other property of the owner already on the tax role with the jurisdiction of the City. Change in appraised value does not qualify for abatement except in an instance where a previously vacant Authorized Facility is utilized. Value added to the tax rolls must come from actual capital expenditures. The negotiation of tax abatement contracts will be conducted by the Paris Economic Development Corporation, in conjunction with the City Manager or designee to the Tax Abatement Committee. In determining where and how tax abatement will be utilized, the Tax Abatement Committee will examine the potential return on the public's investment. Return on public investment will be measured in terms of (i) Jobs created, (ii) Jobs retained in cases of existing Employers within the City, and (iii) broadening of the tax base, and expansion of the economic base. A property owner and/or lessee shall be eligible for tax abatement only upon the following terms and conditions: a) If the Property involved is an Authorized Facility. b) If the Property involved is a Historic Property. In the City Historic Districts there are certain commercial and residential tax exemptions allowed. Exterior improvements in the historic districts are allowed at 100% for seven (7) years with a minimum investrnent of $5,000 for residential property and $10,000 for commercial property. New residential construction requires a minimum investment of $100,000 to be considered for a three (3) year 100% exemption. New commercial construction requires a minimum investment of $200,000, for a 100% tax exemption for three (3) years.