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Paris <br />Economic <br />Development <br />Corporation <br />December 10, 2001 <br />Address to Paris City Council <br />Via Erik Roddy <br />Tax abatement is always a/potentially can#rSversi issue and should <br />always be considered in a most ~incere fidulrrary manner~s far as the request to <br />the City of Paris by KG Propertigs, SY;Ivfa~agement, it is }}Yowing new ground. <br />Historically the City has nQt-use'c~,#~x in entives outsi ~of those for what we <br />define as primary employ s, i.e.: manu~acturin.g isiribution/warehousing, and <br />basic industrial activities thftQq~nduct alvalue-added activity that brings new <br />dollars into the Paris economy. <br />There were six major points of disciission by the PEDC. 1.) This assisted living center is not the traditional type of project for which <br />PEDC has offered incentives. All tax abatements to date have been for <br />industrial type facilities. ' <br />2.) Staff recommendation to the PEDC Board was for a tax phase-in: <br />80% abatement for years lthru 3, <br />Year 4- 25% reduction in the abatement amount <br />Year 5- 50% reduction of original abatement <br />Year 6- 75°/a reduction of original abatement <br />Year 7 - no abatement. <br />The PEDC Board rejected this proposal twice. <br />3.) Potential to have this project designated as an enterprise project is <br />very minimal. That designation would be zequired to receive the <br />original incentives requested. <br />4.) Some concerns raised by the PEDC: <br />Would this business compete with similar existing businesses? <br />What would be the advantage to the community to grant such an <br />abatement? <br />Where do we draw the line on tax incentives that are not industrial <br />manufacturing type facilities? <br />5.) Typically tax abatements are granted in an attempt to atiract the location of <br />facilities that may not otherwise have occurred. The general consensus of this <br />project was that it would occur with or without the abatement. The property <br />for the facility has already been purchased. <br />6.) PEDC could not support the various incentives requested, however, it is the <br />hope of the PEDC that this project will become a realiiy:': <br />1651 Clarksville Street - Paris, Texas 75460 <br />(903) 784-2501 - 1-800-PARISTX - Fax (903) 784-2503 <br />http://www.paristexas.com <br />