10-APPROVE ABATEMENT REQUEST OF T&K MACHINE

Home Browse Search

Submittal Date: 10/18/2012 Council Date: 11/12/2012 CITY COUNCIL AGENDA ITEM BRIEFING SHEET Originating Department: � Presented By: PEDC Steve Gilbert, Executive Director RECOMMENDED MOTION: Approve abatement request of T&K Machine, Inc. Agenda Item No.: �1� POLICY ISSUE�S�: This abatement request complies with the abatement policies, guidelines and criteria approved by the Paris City Council on August 13, 2012 in Resolution 2012-072. This tax abatement helps maintain and enhance the commercial and industrial economic and employment base of the Paris area for the long- term interest and benefit of the City of Paris and its citizens. BACKGROUND: T&K is a long-time Paris aerospace parts manufacturing company, currently employing 65 people. The aerospace industry is very active for the foreseeable future based on a number of factors. T&K must position itself to expand. T&K currently sub-contracts some work out to Dallas suppliers due to a lack of capacity at the existing facility. This work can come back in-house with the expansion. Year 1 plans are to construct a new 5,000 sq. ft. building and to purchase and install three new CNC machines, employing an additional 15 employees. Five year plans for which this abatement is requested, are: 5-Year Proiect Plans New Jobs: 44 New Machines: 15 CapitalInvestment: Buildings: Equipment: $ 160,000 (New 5,000 sq. ft. expansion) 4,056,000 $4,216,000 BOARD�COMMISSION RECOMMENDATION: Approve abatement request as proposed. EXHIBITS: Resolution ACTION: ❑ Financial Report ❑ Department Report ❑ Presentation � Public Hearing ❑ Minute Order � Resolution ❑ Ordinance ❑ Other BUDGET INFO: Expense $ Budgeted Amt. $ YTD Actual $ Acct. Name Acct. Number City of Paris , � � 6 Revised 2/04/08