2012-090 RES APPROVING/AUTHORIZING TAX ABATEMENT AGREEMENT WITH T & K MACHINE INC

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Paris, Texas Economic Deveiopment Corporation POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT I. Generat Purpose and Objectives. The City of Paris, Texas (herein called the "City") is committed to enhancing the competitiveness and the expansion potential of the City's manufacturing industry; to attracting and encouraging new manufacturing industry and investment; to improving the Ciiy and its infrastructure which amacts and supports development; and, to expanding the tax base, employment opportunities, and the overall quality of life for its citizenry. Therefore, the City will give consideration, on a case- by-case basis, to providing tax abatement according to state law to the owners of real and personal property for projects that stimulate economic growth and diversification in the City. Ta�c abatement benefits may be made available to industrial, manufacturing, distribution, and service facilities, or any "primary jobs" creating industry as defined by the Economic Development Act of the State of Texas. The facility must be currently in the City or locating in the City, and located in a designated Enterprise Zone or Reinvestnnent Zone. New facili#ies and structures as well as the expansion and modernization of existing facilities and structures, will be considered. Evaluation of a tax abatement request will be based on the information provided in the tax abatement application. However, the City, Lamar County and Paris Junior College are under no obligation to pravide tax abatement to any applicant. The Paris Ciry Council acts as the lead entity for projects located in the city Jimits. The Lamar County Board of Commissioners and the Paris Junior College Board of Regents have also adopted this policy and will consider tax abatement request that qualify under these policies. iI. Definitions. Definitions are provided as an Appendix A. III. Designation of a Reinvestment Zone. The City or County may designate an area as a reinvestment zone in accordance with the criteria and procedural requirements set forth in the Property Redevelopment & Tax Abatement Act, as amended (Texas Tax Code Sec. 312.401 (b)}, For any area within the jurisdiction of the City to be eligible for tax abatement it must meet the criteria for designation as a tax abatement reinvestment zone as set forth in the Property Redevelopnnent and Tax Abatement Act, Texas Tax Code Chapter 312. TV. Tax Abatement Authorixed. The City, through its elected City Council, may agree in w.citing with the owner and/or Iessee of taxable real and/or personal property tha.t is located in a reinvestment zone, but that is not in an improvement proj ect financed by tax increment bonds, to exempt from taxation a partion of the value of the real properly, ar of personal property located on the real property, ar both. The period of the abatement granted under the agreement shall not exceed the term authorized by law. Such agreement will be based on the conditiQn that the owner or lessee of the property rnakes specific improvezxients or repairs to the property. An agreement may provide for the exemption of the real property in each year covered by the agreement only to the exteni its value for that year exceeds the base year value. An agreement may provide for the exemption of personal property located on the real property in each year covered by the agreement other than personal property that was located on the real property at any time before the period cavered by the agreement. Inventory or supplies cannot be abated as personal property.