2016-034 - Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code; Providing Tax Incentives; Nominating Kimberly-Clark Corporation ...ORDINANCE NO. 2016 -034
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
AUTHORIZING THE CITY OF PARIS TO PARTICIPATE IN THE TEXAS
ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE
ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE; PROVIDING TAX
INCENTIVES; NOMINATING KIMBERLY -CLARK CORPORATION TO THE
OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT AND TOURISM
THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS
A QUALIFIED BUSINESS AND ENTERPRISE PROJECT UNDER THE ACT;
DESIGNATING A LIAISON FOR OVERSEEING ENTERPRISE PROJECTS AND
COMMUNICATING WITH INTERESTED PARTIES; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Texas ( "the City") desires to create the proper
economic and social environment to induce the investment of private resources in
productive business enterprises located in severely distressed areas of the City and to
provide employment to residents of those areas; and,
WHEREAS, Kimberly -Clark Corporation ( " Kimberly- Clark ")was previously
designated an Enterprise Project on December 22, 1999, with an expiration date of
December 22, 2004, by the Texas Department of Economic Development and successfully
completed all elements of its designation; and,
WHEREAS, Kimberly -Clark was previously designated an Enterprise Project on
December 1, 2005, with an expiration date of December 1, 2010, by the Texas Department
of Economic Development and successfully completed all elements of its designation; and,
WHEREAS, Kimberly -Clark was previously designated an Enterprise Project on
September 1, 2011, with an expiration date of September 1, 2016, by the Texas Department
of Economic Development and successfully completed all elements of its designation;
WHEREAS, the project or activity nominated herein is not located in an area
designated as an enterprise zone;
WHEREAS, pursuant to the Texas Enterprise Zone Act, Chapter 2303, Subchapter F
Texas Government Code (the "Act "), Kimberly -Clark has applied to the City for designation
as an enterprise project;
WHEREAS, the Act authorizes the designation of enterprise projects within an
enterprise zone (or, if the requirements of Section 2303.402(a)(2) of the Act are met,
within an area that does not qualify as an enterprise zone); and,
WHEREAS, under the 2003 amendments to the Act, the Act is now administered by
the Office of the Governor Economic Development and Tourism ( "OOGEDT ") through the
Texas Economic Development Bank ( "Bank ");
WHEREAS, Kimberly -Clark continues to be a major employer for the City of Paris,
Lamar County, Texas;
WHEREAS, the City finds that Kimberly -Clark meets the criteria for tax relief and
other incentives adopted by the City on the grounds that it will be located at the qualified
business site, will create a higher level of employment, economic activity and stability;
WHEREAS, following posting and publication of the notice of hearing, a public
hearing was held by the Paris City Council at the Council Chambers, Paris City Hall, 107 E.
Kaufman, Paris, Texas on November 14, 2016 to consider this ordinance and to allow all
interested persons to appear and be heard; and,
WHEREAS, the City Council has determined that passage of this Ordinance would be
in the best interests of the City of Paris and its citizens.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS THAT:
Section 1. The findings set out in the preamble to this ordinance are hereby in all
things approved.
Section 2. The City Council of the City of Paris hereby nominates Kimberly -Clark
as an Enterprise Project under the Act
Section 3. As required by Section 2303.4051(b) of the Act, the City's local
incentives available in each area within an enterprise zone and in each area not in an
enterprise zone are identified and summarized in the attached Exhibit "A;" and at least one
of the local incentives is unique to the enterprise zone area. The City is in full compliance
with the Act.
Section 4. As required by Section 2303.4051(c)(2) of the Act, the City's local
incentives, including tax incentives, that at the election of the City Council, are or will be
made available to Kimberly - Clark, the nominated project, are identified and summarized in
the attached Exhibit "B ".
Section S. The enterprise zone areas within the City are reinvestment zones in
accordance with the Texas Tax Code, Chapter 312.
Section 6. The City of Paris areas that meet the 2003 requirements in Section
2303.101 of the Act for automatic qualification for designation as an enterprise zone are
shown in the attached Exhibit "C ".
Section 7. The City Council of the City of Paris designates the City Engineer, as the
City's liaison to communicate and negotiate with the OOGEDT through the Bank and
enterprise project(s) and to oversee zone activities and communications with qualified
businesses and other entities in an enterprise zone or affected by an enterprise project.
Additionally, the City Engineer shall oversee enterprise projects nominated by the City and
to perform the other duties described in Section 2303.204 of the Act. The City authorizes
the City Engineer to file an application requesting designation of Kimberly -Clark as an
Enterprise Project with the Bank, and to execute all documents and agreements necessary
to process the application. Further, the City directs the City Engineer or her designee to
submit to the Bank the information required by section 2303.4052 of the Act.
Section 8. The City finds that Kimberly -Clark meets the criteria for designation as
an enterprise project under the Act on the following grounds:
(a) Kimberly -Clark is a "qualified business" under Section 2303.402 of the Act
because it is engaged in the active conduct of a trade or business at a qualified
business site within the governing body's jurisdiction, located outside of an
enterprise zone, and at least thirty-five percent (35 %) of its new employees at
the qualified business site will be residents of an enterprise zone in this state or
economically disadvantaged individuals;
(b)The Kimberly -Clark project is qualified under Section 2303.404 of the Act
because (1) it involves "an expansion, renovation, or new construction "; (2) it
will be completed within a predetermined period not to exceed five years; and
(3) Kimberly -Clark maintains separate books and records for the Paris
manufacturing operations;
(c) There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities within the jurisdiction of the City;
(d) The designation of Kimberly -Clark as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and
revitalization of the area in which the enterprise project will be located; and
Section 9. Upon approval by the Bank, the Enterprise Project will be named
KIMBERLY -CLARK CORPORATION PROJECT ( "Project ").
Section 10. The Enterprise Project designation must be for a predetermined
designation period approved by the Bank, with a beginning date and ending date for the
Project; and the designation period for the Project may not exceed five (5) years from the
date on which the designation is made, as required by Section 2303.404 of the Act.
Kimberly -Clark and the City request that the Bank approve December 1, 2016, as the
beginning date and December 1, 2021, as the ending date of the Project.
Section 11. That this ordinance shall be effective following passage and
publication as required by law.
PASSED, APPROVED, AND ADOPTED this 14th day of November, 2016.
CITy
ATTEST:
=Cn.
nice Ellis, City
RO ED AS TO FORM:
vlaa-) Y4144
Step anie H. Harris, City Attorney
Billie Sue Lancaster, Mayor Pro -Tem
Exhibit A
Paris, Texas Financial Incentives
(Cash, Tax Abatements, Exemptions and Related Programs)
PEDC Staff will assist your company all of the following programs to maximize the ftaaneud incentives
foryourcompany. Each project is unique# and PEDC will couddarand pursue a varlety,of options, for
direct loans (can be bank su inate} l tees, interest downs, site , development
including extension of utilities, is for job creation, rent subsidies, build-to-suit with 1 back or
purchase options, customizedjob training, loans,with forgiveness on job creation, reimbursement of
relocation expenses, and other options subject to negotiation. Typical incentives include the follow"
Pro-Business
Because of a pro- business attitude, Texas has limited the number of state controls and taxes
Climate
in regulating the activities of business. Texas is a right -to -work State, and has no personal or
corporate income tax, nor a state property tax.
Tax Abatements
The City of Paris has a proven track record of negotiating tax abatements for up to 10 years
for new and expanding industries. In addition, Lamar County and Paris Jr. College will
consider local tax abatements for projects with significant job creation and private capital
investment.
Local Cash
The citizens of Paris adopted a' /4 cent sales tax as an incentive assistance program to
Incentive for Job
facilitate industrial locations and expansions. This program is administered directly by the
Creation
Paris Economic Development Corporation.
Industrial Dev.
PEDC has a history of providing industrial development bonds as a viable alternative for
Bonds
financing industrial expansion and construction.
Skills
An incentive to relocating or expanding businesses through Texas community and technical
Development
colleges and workforce boards to provide customized assessment and training services to
Fund
business in a timely, efficient and responsive manner.
Enterprise Zone
Depending on the exact site location, Paris is a qualified Enterprise Zone (EZ). If your
development or revitalization project is located in the EZ, the City of Paris can approve
partial or deferred payment of sales and use taxes for qualified purchases, leases, or rentals.
Specifically, the EZ provides sales and use tax rebates on machinery and equipment, building
materials, labor for the rehabilitation of existing buildings, and electricity and natural gas
purchases. The EZ also provides priority job training, and other preferential treatment on
state and federal programs. The tax refund is $2,000 for each permanent job the project
creates or retains during the five year designation period. Qualifying projects may also be
eligible for franchise tax reduction, property tax abatement up to 100% of the estimated local
tax increase to be levied on the proposed property improvements for a term not to exceed ten
(10) years, and other regulatory relief.
Freeport Law
Article VIII, Section 1 of the Texas Constitution has been amended to allow real and
Tax Exemptions
personal property to be tax - exempt (city, county and school districts.) All goods, wares,
merchandise, other than tangible personal property (inventory) acquired in or imported into
Texas to be forwarded outside this state, which is detained for storing, assembling,
manufacturing, processing, or fabricating in Texas for 175 days or less, may be tax exempt.
Financial
Local financial services companies in Paris and Lamar County are committed to the
Services
economic growth of the region through aggressive commercial and industrial development.
Paris is currently served by seven commercial banks, two savings & loan associations, and
has access to mortgage bankers, and other creative financial services.
SBA and Other
Small business loans are available through the SBA 504 program. Up to 40% of total cost
Loan Programs
can be provided in the form of subordinate debt to SBA for most fixed asset projects at
interest cost of 2 to 3% below market for periods of 15 -25 years. This type of financing can
provide 90% of the long -term financing needs of a small business. Also available are the
SBA 7(A) Loan Guarantee program, the FmHA, Paris' local Revolving Loan Fund, various
programs of the ArkTex Council of Governments, and the Texas Leverage Fund.
(Updated 11- 14 -16)
Exhibit A
Paris, Texas Financial Incentives
(Cash, Tax Abatements, Exemptions and Related Programs)
Tax Increment
Financing
Financing through the creation of tax increment reinvestment zones.
Low- Interest
The City may offer low- interest loans to develop or revitalize the zone.
Loans
Municipal Sales
The City may refund the amount of tax paid under the Municipal Sales and Use Tax (Texas
and Use Tax
Tax Code, Chapter 321) by the business and remitted to the Comptroller of Public Account
Refund
up to the maximum extent authorized by Sections 2303.505 and 2303.506 of the Act, and for
a period determined by the City, but which shall not exceed five (5) years.
Bonds
Tax-Exempt Industrial Bonds.
Fee Waivers
The City may waive or refund any and all applicable fees due or paid.
Infrastructure
The City may provide infrastructure improvements for industries.
Improvements
Zoning Changes
Allows changes in the zoning and variances.
or Variances
One -Stop
The City allows permit applications and supporting materials to be tendered to one
Permitting
department for distribution to the appropriate ci departments.
Enhances
Municipal
Daily convenience for City residents.
Services
Increased Fire
and Police
Safety and protection for City residents.
Protection
Community
Crime Prevention
Community crime prevention programs such as D.A.R.E., Crime Watch, Think Child Safety,
Pr
and Think Senior Safety.
rams
Capital
Improvements in
The City can provide resources for a capital improvement plan related to water and sewer
Water and Sewer
service.
Road Repair
The City is responsible for maintaining and repairing all public streets and alleys inside city
limits.
Creation or
Improvement of
Maintain healthy lifestyle for city residents. Parks are located in city limits and are the
Parks
responsibility of city government.
Low- Interest
Loans for
Encourage home ownership for City residents.
Housing
Public Land for
Development
Strategic sustenance and growth for the City.
Purposes
Promotion and
Marketing
Assistance offered by Lamar County Chamber of Commerce and Paris Economic
Service
Development Corporation.
Job Training
Offered in conjunction with Paris Junior College.
Streamlined
The City may allow permit applications and supporting materials to be tendered to one
Permitting
department for distribution to the appropriate ci departments.
(Updated 11- 14 -16)
Exhibit A
Paris, Texas Financial Incentives
(Cash, Tax Abatements, Exemptions and Related Programs)
Retraining
Offered in conjunction with Paris Junior College.
Program
Literacy and
Employment
Offered in conjunction with Paris Junior college and public school districts.
Skills Programs
Vocational
Education
Offered in conjunction with Paris Junior College and public school districts.
Cash Grants
Offered by Paris Economic Development Corporation (4A Economic Development Sales
Tax).
Customized Job
Offered in conjunction with Paris Junior College
Training
Grants, Loans or
As authorized in Chapter 380 of the Texas Local Government Code
Other Incentives
(Updated 11- 14 -16)
Exhibit B
Incentives that may be considered and offered by the City of Paris to
Nominated Texas Enterprise Zone Projects 2010 -17
Name of Incentive Description of Incentive Availability
Fee waiver for tax
Waive fees associated with
Enterprise Zone
1
abatement application
tax abatement application.
Projects /Enterprise
Zone areas on a
Case -by -Case
Basis
Exhibit A
On a case -by -case basis.
Enterprise
2
Zone/Where
Applicable/City-
Wide
Exhibit C
Paris Areas meeting the 2016 Requirements for
Texas Enterprise Zone (Sections 2303.101 and 2303.109)
Lamar
Census
Block
I
31.901%
County
Tract
Group
Poverty Rate
Lamar
700
1
31.901%
Lamar
800
1
40.432%
Lamar
800
4
32.660%
Lamar
1000
3
21.942%
Lamar
600
3
42.964%
Lamar
500
1
50.899%
Lamar
1000
2
22.232%
Lamar
500
4
41.063%
Lamar
800
3
27.829%
Lamar
500
2
37.562%
Lamar
500
3
37.741%
Lamar
600
1
34.279%
Lamar
1000
1
27.220%
Lamar
200
2
29.358%
Lamar
401
1
22.912%
Lamar
600
2
34.820%
Lamar
101
1
22.946%
Lamar
101
2
23.056%