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 Capital Investment, Payroll and Job Creation Criteria A tax abatement may be made available to employers who are creating jobs and increasing new capital investment wiih respect to an authorized facility located anywhere within the City or its extra territorial jurisdiction based on the following criteria. To be eligible for any ta�c abaterr�ent, there must be a minimum capital investment in the authorized facility of $250,000 and at Ieast ten (] 0) new jobs added to the employer's labor force. The chart below provides When an abatement percentage has been agreed upon it shaU be granted based on the following schedule. This chart does not imply that 100% of the vaivation will be abated. lt refers to the ratio of the agreed-to abatement. Timeframe �ercent of Abatement A reed To Year ] ] 00% Year 2 104% Year 3 l00% Year 4 $0% Yea�' S 60% Year 6 40% Year 7 20% Year 8 Valuation full back on tax rolls) 0% 3. Any project with a capital investment of more than ten million dollars ($10,000,000), accompanied by a newly created minimum annua! payroll of two and one-half million dollars ($2,SQO,Q00), or creating more than two hundred twenty-five (225) jobs will be individually negotiated. 4. No abatement will be granted for more than specified in state law. 5. If a newly created business is iocated or will locate within an enterprise zone, an additiona] 10 to 20% abatement may be available as individually negotiated, with total abatement not to exceed 104%. 6. The City recognizes a significant difference in the vaIuation of real propsrty and personal property. Because of depreciation schedules, often the abatement of personal property is basically a tax exemption. For this reason, the abatement schedule for personal properly versus real property may be different. 7. If persona] property should become obsolete and be replaced while under an abatement agreement, the replacement personal properly is not eli�ible for abatement. VI. Tax Abatement for Existing Employers Regarding Real or Personal Pr�perty. The City recognizes the value of its existing employers to the wellbeing of the community. The City desires to encourage existing emplayers to remain in the City and to irnprove their respective businesses and industries, as well as their profitability.