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Minutes of Special Meeting PEDC <br />October 17, 2001 <br />Page 2 <br /> <br />withdrawn their request for all of the incentives except the tax abatement. Mr. <br />Vest pointed out that one of the concerns that the PEDC had was about the <br />financing. His understanding is they have 90 percent financing from HUD, <br />which means they will have to do 10 percent of the financing locally. Mr. Vest <br />advised that the PEDC has not done this type of tax abatement in the past. He <br />said the other abatements that have been given were for industrial type <br />facilities. He stated that it is allowed under state law because it is in an <br />enterprise zone, and there is goodwill that could be established. Mr. Vest said <br />he did not know if the City Council would go through with this tax abatement <br />because of the perception of East and West Paris. He advised that this would <br />be a significant addition to West Paris. Mr. Vest further advised that there are <br />other things that they need to look at if the PEDC is going to recommend a tax <br />abatement of this type. Mr. Vest said his recommendation to the Board would <br />be to do the tax abatement on a phase-in basis for this type project. He said <br />they would give 80 percent abatement for year one through three; year four <br />would be reduced by 25 percent; and then continue to reduce the tax <br />abatement for years five, six, seven. After seven years the property would be <br />on the tax roll at one 100 percent. <br /> <br />Mr. Vest said that the proposal that he and City Attorney Schenk have been <br />working on is still not refined, and it will come to the Board as soon as it is <br />finished. He said the recommendation of this type of tax abatement phase-in <br />would be based on the amount of capital investment and j ob creation. He said <br />for this project, the Board and Council could expect 2.7 million dollars for <br />capital investment and 25 employees with a $400,000.00 annual payroll, so it <br />would be a very significant investment for the area of town where it would be <br />located. Mr. Vest further advised that the PEDC can only make a <br />recommendation to the City Council. <br /> <br />Director Guest suggested that the PEDC adopt a policy for use in the future. <br /> <br />Mr. Gary Kammer came forward speaking on behalf of their request for a tax <br />abatement. Mr. Kammer said that they had chosen West Paris to attempt to <br /> <br /> <br />