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Paris Economic Development Corp. Sept. 12, 2001 Page 2 President Rhodes called for consideration of and action on a recommendation to the City Council of the City of Paris on the tax abatement application from S. I. Management, Inc. And KG Properties, LLP. President Rhodes advised that a few months ago it was agreed that all tax abatement requests would come through the Paris Economic Development Corporation before they go to the City Council. Mr. Rhodes said this is our first request. Gary Vest, Executive Director of the Paris Economic Development Corporation, reported that this request is for an Assisted Living Center, which will be located at 1746 Bonham Street. He said it would employee twenty-five people, and will have a $400,000.00 payroll. They will have a capital investment of $2,744,000.00. Mr. Vest said normally this type of project would not be considered for a tax abatement, but the Assisted Living Center will be within the enterprise zone, and would be eligible for tax abatement under the state tax abatement laws. Mr. Vest advised that the Paris Economic Development Corporation's guidelines and procedures is to give tax abatements to manufacturing and warehouse distribution facilities. Mr. Vest said there would be goodwill to be gained from a new project in West Paris. Mr. Vest advised that the first thing that this company asked for was a one hundred percent seven year tax abatement. Mr. Vest said that he and the City Attorney have been working on a tax abatement policy which has not been presented to this board or the City Council. I t has a scale that calls for a graduated tax phase-in. He said if this board makes a recommendation to the City Council, his suggestion would be that they go in with an eighty percent abatement for the first three years and reduce that by twenty-five percent for the next four years so that after seven years they will be paying one hundred percent of the tax.