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Paris Economic Development Corp. Y <br />Sept.12,2001 <br />Page 2 <br />abatement application from S. I. Management, Inc. And KG Properties, <br />LLP. <br />President Rhodes advised that a few months ago it was agreed that all tax <br />abatement requests would come through the Paris Economic Development <br />Corporation before they go to the City Council. Mr. Rhodes said this is our <br />first request. <br />Gary Vest, Executive Director of the Paris Economic Development <br />Corporation, reported that this request is for an Assisted Living Center, <br />which will be located at 1746 Bonham Street. He said it would employee <br />twenty-five people, and will have a$400,000.00 payroll. They will have a <br />capital investment of $2,744,000.00. Mr. Vest said normally this type of <br />project would not be considered for a tax abatement, but the Assisted <br />Living Center will be within the enterprise zone, and would be eligible for <br />tax abatement under the state tax abatement laws. Mr. Vest advised that <br />the Paris Economic Development Corporation's guidelines and procedures <br />is to give tax abatements to manufacturing and warehouse distribution <br />facilities. Mr. Vest said there would be goodwill to be gained from a new <br />project in West Paris. Mr. Vest advised that the first thing that this <br />compan.y asked for was a one hundred percent seven year tax abatement. <br />Mr. Vest said that he and the City Attorney have been working on a tax <br />abatement policy which has not been presented to this board or the City <br />Council. I t has a scale that calls for a graduated tax phase-in. 1Ie said if <br />this board makes a recommendation to the City Council, his suggestion <br />would be that they go in with an eighty percent abatement for the first , <br />three years and reduce that by twenty-five percent for the next four years <br />so that after seven years they will be paying one hundred percent of the <br />tax. <br />Mr. Vest said the compan.y has asked for a one hundred percent refund of <br />Local Sales and Use Tax. This is the first time this has been requested. <br />Mr. Vest advised that in order for the PEDC to do this, they would also <br />have to receive enterprise designation to qualify for this request. He said <br />