10-APPROVE ABATEMENT REQUEST OF T&K MACHINE

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Aaris, Texas Economic Development Corporation POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT 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 vaiue of other property of the owner already on the tax role with the jurisdiction of the City. Change in appraised value daes not qualify for abatement except in an instance where a previously vacant authorized facility is utilized. Value added to the tax roils must come from actual capital expenditures. The negotiation of tax abatement agreements will be conducted by the Paris Economic Development Corporation (Paris EDC} 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 (e.g, capital investrnent). V. Eligibility Criteria for Tax Abatement for Real and Persanal Property A property owner andlor lessee shall be eligible for tax abatement only upon the following criteria. Eli 'bili Criteria for Tax Abatement Authorized t. An authorized facility is used for manufacturing, research, ragional distribution, regional Facility tourist entertainment, other basic industry, or any primary jobs creating industry. (See Appendix A for detailed definitions.) 2. A new authorized faeility must be created, or an existing authorized facility must be improved, modernized or expanded. 3. If a Ieased authorized faciliry is granted abatement, the agreement may be executed with the lessor and/or lessee, depending upon the particular circumstances of the proposed project if the agreement is with the lessor, lessor shall demonstrate binding contracts with the lessee to uarantee com liance with the terms of the a reement. Eligible 1_ The property involved must be a newly created or improvements to an existing authorized Property facility 2. Eligible property for which abatement may be granted includes nonresidentiaE real property and/or Tangible personal property not located on the real property at any time before the abatement agreement becomes effective. 3. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the opetation and administration of the authoriaed facitity. 4. Invento or su lies shall not be eli ible for abatement Historic I. lf the property invoIved is a historic properly in the Gity's Historic Districts there are certain Property commercial and residential tax exemptions allowed. Located in 2. Exterior improvements in the historic districts are allowed at 100% for seven {7) years with a Historic minimum investment of $5,000 €or residential property and $10,000 for commercial property_ District 3. New residential construction requires a minimum investment of $100,000 to be considered for a three (3) year ] 00% exemption. 4. New commercial construction requires a minimum investment of $200,000 for a 100°/a tax exem iion for three (3) ears. Value and ]. The City will decide whether to grant tax abatement to an applicant, and the amount, if any, of Term of such abatement, on a case-by-case basis and in accordance with these Criteria and Guidelines. Ahatement 2. Theterm ofabatementgranted underany agreement may not exceed that permitted by a licable state law. • �