22 - TAX ABATEMENT AGREEMENT FOR PARIS LAKES MEDICAL CENTER

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Item No. 22 memorandum TO: City Council John Godwin, City Manager FROM: Kent McIlyar, City Attorney SUBJECT: Tax Abatement Agreement for Paris Lakes Medical Center DATE: June 1, 2015 BACKGROUND: On December 8, 2014, the City Council created Reinvestment Zone No. 2014 -1 on 40 acres of land near the intersection of SE Loop 286 and FM 905 for the proposed Paris Lakes Medical Center Project. Since that time, PLMC has obtained rezoning of the property from Agricultural to Commercial and they have met with City Engineering staff to discuss necessary public infrastructure improvements for the Project. PLMC has also had several meetings with the Tax Abatement Committee to refine the scope of the proposed project and to move forward with a proposed Tax Abatement Agreement. Paris Lakes Medical Center, LLC ( "PLMC ") is requesting a ten (10) year tax abatement on 100% of the Improvements to be constructed on the 40 acre parcel located inside City of Paris Reinvestment Zone No. 2014 -1. In order to receive the tax abatement, PLMC must invest a minimum of $108,000,000.00 in the Project and complete construction of the following Improvements no later than June 1, 2018: A. An acute care hospital with at least 64 beds and a minimum of 170,000 square feet of finished hospital space; B. Medical Office Building No. 1 ( "MOB 1 ") with a minimum 60,000 square feet of finished space to include: an ambulatory surgical center, radiology, physical therapy and pathology capabilities and physician offices with related fixtures, equipment, furniture and landscaping, parking and ingress and egress roads; C. Medical Office Building No. 2 ( "MOB 2 ") with a minimum 60,000 square feet of finished space, which will include: an oncology center and physician offices with related fixtures, equipment, furniture and landscaping, parking and ingress and egress roads; D. Medical Office Building No. 3 ( "MOB 3 ") with a minimum 60,000 square feet of finished space, which will include: a long -term acute care skilled nursing facility and physician offices with related fixtures, equipment, furniture and landscaping, parking and ingress and egress roads;