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

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Paris, Texas Economic Development Corporation POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT T� abatement may only be granted for additional value of eligible property improvements made subsequent to and specified in an abatement agreement between the Caty 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 value 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 rolls 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 retnrn 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. Eiigibility Criteria for Tax Abatement for Real and Persanal Property A property owner andior lessee shall be eligible for tax abatement only upon the follow�ng criteria. . Eli 'bili Criteria for Taa Abatement Authorized 1. An authorized facility is used for manufacturing, research, regional distribution, regional Facility tourist entertainment, other basic industry, or any primary jobs creating industry. (See Appendix A for detailed definitions.) 2. A new authorized facifity must be created, or an existing authorized facility must be improved, modernized or expanded. 3. If a Ieased authorized facility is granted abatement, the agreement may be executed with the lessor and/or lessee, depending upon the particular circumstances of the proposed project lf the agreement is with the lessor, lessor shaU demonstrate binding contracts with the lessee to uarantee com liance with the terms of the a reemenY. Bligible 1. The property involved must be a newiy created or improvements to an existing authorized Property facility 2. Eligible property for which abatement may be granted includes nonresidential real property and/or tangible personal property not located on the real properiy at any time before the abatement agreement becomes affective. 3. Abatement may be extended to the value of buildings, siructures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the operation and administrahion of the authorized facility. 4. Invento or su lies shall not be eli ible for abatement Historic I. If the property invoIved is a historic property in the City's Historic Districts there are certain 1'roperty commercial and residential tax exemptions allowed. Located in 2. Exterior improvements in the historic districts are allowed at ]00% for seven (7) years with a Historic minimum investment of $5,000 for residential property and $ I0,000 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 conshvction requires a minimum invesiment of $200,000 for a 100% tax exem tion for three (3) ears. Value and ]. The City wil) 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. Abatement 2. Theterm ofabatementgranted underany agreement may not exceed that permitted by a licable state law.