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 3. The amount of the abatement shall be based upon a percentage (0 to l00%} of all or a portion ofthe eligible property within the authorized facility. 4. Abatements may only be granted for the additiona] value of eligible real and personal property improvements made pursuant to and listed in the agreement between the City and progerty owner and/or lessee, subject to such limitations as the City may require. S. Real property tax abatement may be granted anly to the extent that its vatue for each year of the agreement exceeds its value for the year in which the agreement is executed. 6. If a modernization project includes the replacement of improvements within an authorized facility, the value eligible for abatement shall be the value ofthe new unit{s), less the value of the re taced unit(s). Abatement The criteria used to evaluate a proposed project application for abatement includes, but is not Evaluation limited to: Criteria ]. The dollar amount of the increase in the ta�c roll. 2. The number of jobs created or retained by the employer involved. 3. The possible effect on attracting other taxable improvements into the City. 4. The nature of, and overall effect on the City. 5. The effect on the safefy, health, and morals ofthe City's residents. 6. Any substantial long-term adverse effect on the provision of City services or its tax base. 7. Meeting all relevant zoning requirements. 8. Consistent witE► the comprehensive plan of the City or County of Lamar. 9. The types and cost of public improvemenu and services (water and sewer main extensions, streets and roads, etc.) required of the City. 10. The es and values of ubiic im rovements to be furnished b the a licant. Economic To be eiigible to receive tax abatement, the planned improvements: Qualification 1. Must be reasonably expected to increase the appraised value of the property. 2. Musi be expected to prevent tkre [oss of employment, or assist in the retention or creation of jobs in the City during the term of the agreement. 3. Should not be expected to solely or primarily have the effect of inerely transferring existing employment from one part of the Ciry to another without demonstration of increased future investmeni {do[lars or jobs) or unusual circumstances w6ereby wiihout such a move employment is likely to be reduced. 4. Must be necessary because capacity cannot be provided efficientty utilizing existing improved properry when reasonable allowance is made necessary improvements or relevant overnmental actions. Taxabiliry During the term of the agreement, taxes shall be payable as follows: l. The base year of eligible property as determined each year by the Lamar County Appraisal District, shal] be fully taxable. 2. The additional value of eligible property above the base year value shall be taxable in the manner described in the agreemeni. 3. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the real and personal property comprising the reinvestment zone. 4. Each year, the employer, the company or individua] receiving abatement pursuant to an agreement shal] fumish the assessor with such information as may be necessary Yo determine the amount of any abatement. 5. Once such value has been established, the Chief Appraiser shall notify the affected jurisdictions, which levy taxes on such property and also notify the Paris EDC. 6. The employer, owner or lessee of eligible property requesting tax abatement within a reinvestment zone shall, prior to the commencement of eligible property improvements, agree to expend a designazed sum of money and to create or retain a certain number of jobs, or annual a oll as further defined below.