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 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 with 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 abatement, there must be a minimum capital investment in the authorized facility of $250,000 and at least ten (10) new jobs added to the empioyer's labor force. The chart below provides ��Vhen an abatement percentage has been agreed upon it shal] be granted based on the following schedule. This chart does not imply that ] 00% of the valuation will be abated. Ik refers to the ratio of the agreed-to abatement. Timeframe Percent of Abatement A reed To Year 1 100% Year 2 100% Year 3 100% Year 4 80% Year 5 60% Year 6 40% Year 7 20% Year 8 Valuation full back on tax rolls �% 3. Any project with a capital investment of more than ten million dollars ($10,000,000), accompanied by a newly created minimum annual payrol] of two and one-half million dollars ($2,500,000), 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 located or will locate within an enterprise zone, an additional 10 to 20% abatement may be available as individually negotiated, with total abatement not to exceed 100%. b. The City recognizes a significant difference in the vatuation of rea] property 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 property versus real property may be different. 7. !f personal property should become obsolete and be replaced while under an abatement agreement, the reqlacement personal pronerty is not eli�ible for abatement. VI. Tax Abatement for Existing Emplo,yers Regarding Real or Personal Property. The Ciry recognizes the value of its existing employers to the wellbeing of the community. The City desires to encourage existin� employers to remain in the City and to improve their respective businesses and industries, as well as their profitability.