2013-016 RES APPROVING AND AUTHORIZING TAX ABATEMENT AGREEMENT WITH JAMES SKINNER CO

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Paris, Texas Economic Development Corporation POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT Tax abatement may only be granted for additional value of eligible property improvements made subsequent to and specified in an abatement agreement between the City 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 af the owner already on the taa ro11 within the jurisdiction of the City. Change in appraised value does not qualify for abatement except in an instance where a previously vacant authorized facility is utiiized. 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 abateinent will be utilized, the Tax Abatement Committee will examine the potential return 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 investment). V. Eligibility Criteria for Tax Abatement for Real and Personal Property A properly owner and/or lessee shall be eligible for tax abatement only upon the following criteria. Eli ibili Criteria for Tax 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 facility must be created, or an exis[in� authorized facility must be improved, modernized or expanded. 3. If a leased 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. If the ageement is with the lessor, lessor shall demonstrate binding contracts with the lessee to uarantee com liance with the terms of the a reement. Eligible 1. The property involved must be a newly 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 pmperty not located on the real property at any time before the abatement agreement becomes effective. 3. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the operation and administration of the authorized facility. 4. lnvento or su lies shall not be eli ible for abatement. Historic 1. If the property involved is a historic property in the City's Historic Distriets there are certain Properry commerciai and residential ta�c exemptions allowed. Located in 2. Exterior improvements in the historic districts are allowed at 100% for seven (7) years with a Historic minimum investment of $5,000 for residential properry and $10,000 for commercial property. District 3. New residential construction requires a minimum investment of $100,000 to be considered for a three (3) year 100°/a exemption. 4. New commercial construction requires a minimum investment of $200,000 for a 100% tax exem tion for three (3) ears. Value and 1. The City will decide whether to grant tax abatemeni 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. The term of abatement granted under any agreement may not exceed that permitted by a licable state law.