2017-033 - Kimberly-Clark Tax Abatement0411,1111111
KIMBERLY-CLARK CORPORATION- MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO TH� SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris, Texas has been presented a
proposed agreement by and between the City and Kimberly-Clark Corporation providing
for a commercial and industrial tax abatement for certain improvements, a copy of which is
attached hereto as Exhibit 1 and incorporated herein by reference, hereinafter called the
"Agreement",and,
WHEREAS, the City Council did heretofore, on the 1111, day of January, 2016, in
Resolution No. 2016-003, reaffirm its election to be eligible to participate in tax abatement
agreements authorized by the Property Redevelopment and Tax abatement Act, Texas
Government Code Chapter 312, et seq. (the Act"), in order to maintain and enhance the
commercial and industrial economic and employment base of the Paris area for the long
term interest and benefit of the City and its citizens; and,
WHEREAS, the City Council did heretofore, on the 14d, day of November 2016, pass
Ordinance No. 2016-034 (hereinafter referred to as the `°Ordinance") authorizing the City
of Paris to participate in the Texas Enterprise Zone Program Linder the Texas Enterprise
Zone, Act, Chapter 2303 of the Texas Government Code (the "Act"); 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; and
WHEREAS, an Enterprise Zone Project Designation was granted for the, "project"
described in the Ordinance and in the Agreement attached hereto (hereinafter called the
"Project") by letter addressed to the City of Paris, Texas, and to the Company, dated
February 27, 2017, by the Office of the Governor of the State of Texas (Economic
Development & Tourism)!, in which a project designation number of EP1056-1201116-P was
assigned to this Project; and
WHEREAS, under the Texas Enterprise Zone Act (Government Code Chapter 2303),
the designation of an area as an Enterprise Zone also constitutes designation of the area as
a reinvestment zone (the "Reinvestment Zone"); and the City of Paris, Texas, ordained in
section 5 of the Ordinance that the Enterprise Zone areas within the City are Reinvestment
Zones under the provisions of the Texas Tax Code, Chapter 312; and
WHEREAS, the property defined in the Agreement and the Project and
improvements to be made under the Agreement are Situated within the Reinvestment Zone
described or referred to in the Ordinance; and
WHEREAS, the contemplated use of the property, and the improvements to be
installed therein in the amounts set forth in the Agreement and the other terms therein are
consistent with encouraging development of said Reinvestment Zone in accordance with
the purposes for which it was created and are in compliance with the City's policy of tax
abatement incentives and the ordinance creating such Reinvestment Zone adopted by the
City and all applicable laws;
WHEREAS, upon review and consideration of the Agreement, and all 'matters
attendant and related thereto, the City Council is of the opinion that the terms and
conditions therein meet the Guidelines and Criteria for Tax Abatement and should be
approved, and that the Mayor should be authorized to execute it oil behalf of the City of
Paris, Texas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
PARIS, TEXAS, THAT:
Section 1. The findings set Out in the preamble to this resolution are hereby in
all things approved.
,Section 2. That the terms of the Tax Abatement Agreement and the property the
subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by the
City of Paris by Resolution No, 2016-003,
Section 3. That, the terms, and conditions of the proposed Agreement attached
hereto as Exhibit, having been reviewed by the City Council of the City of Paris and found
to be acceptable and in the best interests of the City of Paris and its citizens, be, and the
same are hereby, in all things approved.
Section 4. That the Mayor is hereby authorized to execute the Agreement and
all other documents in connection therewith on behalf of the City of Pat -is substantially
according to the terms and conditions set forth in the Agreement attached hereto as
Exhibit 1.
Section 5. That the planned use of the property the subject of the tax abatement
will not constitute a hazard to public safety, health, or morals.
Section 6. That this approval and execution of the agreement on behalf of the
City is not conditioned upon approval and execution of any other tax abatement agreement
by any other taxing entity.
DULY PASSED AND APPROVED this 25th day of September, 2017.
k ,ydldillVi�l tll6dl®A,!! � "�' �A
Steve j,,, lifford, D., Mayor
ATTEST:
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nice Ellis, City Clerk
AP*S'ephme
ROVED AS TO FORM:H. Harris, City Attorney
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This Tax Abatement Agreement (the "Agreement") is entered into by and
between the CITY OF PARIS, TEXAS, a municipal corporation, situated in Lamar
County, Texas, acting by and through its authorized officer whose signature appears
below (hereinafter called "City"), and KIMBERLY-CLARK CORPORATION, acting by
and through its authorized officer whose signature appears below (hereinafter referred
to as "Owner").
WHEREAS, the City Council of the City of Paris did heretofore, on the 14th day of
November 2016, pass Ordinance No. 2016-034 (hereinafter referred to as the
"Ordinance") authorizing the City of Paris to participate in the Texas Enterprise Zone
Program under the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government
Code (the "Act"); 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; and
WHEREAS, an Enterprise Zone Project Designation was granted for the "project"
described in the Ordinance and in this Agreement (hereinafter called the "Project") by
letter addressed to the City of Paris, Texas, and to the Company, dated February 27,
2017, by the Office of the Governor of the State of Texas (Economic Development &
Tourism), in which a project designation number of EP1056-120116-P was assigned to
this Project; and
WHEREAS, under the Texas Enterprise Zone Act (Government Code Chapter
2303), the designation of an area as an Enterprise Zone also constitutes designation of
the area as a reinvestment zone (the "Reinvestment Zone"); and the City of Paris,
Texas, ordained in section 5 of the Ordinance that the Enterprise Zone areas within the
City are Reinvestment Zones under the provisions of the Texas Tax Code, Chapter 312;
and
WHEREAS, the City Council of the City of Faris did heretofore, on the 11th day of
January, 2016, in Resolution No. 2016-003, pass and adopt appropriate Guidelines and
Criteria governing tax abatement agreements to be entered into by the City as required
by the Property Redevelopment and Tax Abatement Act, as amended;
WHEREAS, the Property, as hereinafter defined, and the Project and
Improvements to be made as described herein are situated within the Reinvestment
Zone described or referred to in the Ordinance; and
WHEREAS, the contemplated use of the Property, and the Improvements to be
installed therein in the amounts set forth in this Agreement, and the other terms hereof
are consistent with encouraging development of said Reinvestment Zone in accordance
with the purposes for which it was created and are in compliance with the City's policy
of tax abatement incentives and the ordinance creating such Reinvestment Zone
adopted by the City and all applicable laws;
NOW, THEREFORE, pursuant to Chapter 312 of the Texas Tax Code and the
Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2016-08, the
parties hereto do mutually contract and agree as follows:
I.
Term
1.1 The effective date of this Agreement is the 25th day of September, 2017,
with tax abatement being effective from and after January 1, 2019, and
terminating on December 31, 2028 (an abatement period of ten (10) years (the
"Abatement Period")). Said Abatement Period will terminate on December 31, 2028,
regardless of when Owner completes the Improvements described in Sections II and III
herein below.
II.
The "Property" Area to be Improved
2.1 The Improvements defined in paragraph III below and made the subject of
this Agreement shall be located within that portion of the buildings (herein called the
"Property") located at the Paris, Texas Plant (the "Plant") owned by the Owner and
described in Exhibit A, attached hereto and Incorporated herein by reference, which
Property is within the Reinvestment Zone and the Enterprise Zone.
III.
Consideration: Improvements
3.1 The Owner's current facilities consist of land, buildings, and other
structural improvements at the Owner's Plant described in Exhibit B, attached hereto
and incorporated herein by reference. The Owner shall make improvements and
replacements (herein called the "Improvements") to the equipment within the Property in
the locations shown on Exhibit A. The Owner's Plant in Paris, Texas is part of its
Personal Care Division and manufactures disposable diapers, training and youth pants
and swim pants. Over a period of five years beginning in 2018, Owner has determined
to invest approximately $121,000,000.00 to significantly enhance its machinery and
equipment at its Plant located at Loop 286 SW and FM 137 in Paris, Lamar County,
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Texas, to keep the Plant's diaper and pant production lines state-of-the-art in efficiency,
speed and quality. Said Improvements are more particularly set forth in Exhibit C,
attached hereto and incorporated herein by reference, and are related to new
machinery and improvements to existing machinery at the Plant which will allow Owner
to remain competitive with competing product offerings in the market. Capital spending
investments will be made annually for a period of five (5) years, as is shown below and
in Exhibit C attached hereto, and the Improvements completed in each year will
become eligible for tax abatement beginning on January 15t of the calendar year after
said Improvements are completed. A detailed list of the Improvements proposed to be
installed by the Owner in the years 2018 through 2022 is set out in Exhibit C, with an
estimated yearly investment as follows:
Year
Amount of Investment
Years of Tax Abatement
2018
$25,225,000.00
Abated for ten (10) years
2019
$24,442,800.00
Abated for nine (9) years
2020
$19,602,500.00
Abated for eight (8) years
2021
$22,142,100.00
Abated for seven (7) years
2022
$30,101,700.00
Abated for six (6) years
All of said Improvements will be described in the City's Certificate of Completion defined
in section X. Reporting Requirements. The Improvements will cost approximately
$121,000,000.00 in the aggregate and shall be substantially completed in various
phases prior to December 31, 2022, as is shown on the chart attached hereto as
Exhibit E and incorporated herein by reference; provided that, however, Owner shall
have such additional time to complete the Improvements as may be required in the
event of 'force majeure" if Owner is diligently and faithfully pursuing completion of the
Improvements. For this purpose, "force majeure" shall mean any contingency or cause
beyond the reasonable control of Owner including, without limitation, acts of God, any
natural disaster, war, riot civil commotion, insurrection, governmental or de facto
governmental action unless caused by acts or omissions of Owner, fires, explosions,
accidents, floods, and labor disputes or strikes. The date of completion of the
Improvements shall be defined as the date a Certificate of Occupancy is issued by the
city of Paris, or as otherwise agreed in writing by the parties.
3.2 The Owner agrees and covenants that it will diligently and faithfully, in
good and workmanlike manner, pursue the completion of the Improvements. As a good
and valuable consideration for this Agreement, Owner further covenants and agrees
that all construction of the Improvements will be in accordance with all applicable state
and local laws, codes and regulations, or Owner will procure a valid waiver thereof. In
further consideration, Owner shall thereafter, from the date a Certificate of Occupancy is
issued or the Improvements are completed as agreed until the expiration of this
Agreement, continuously operate and maintain the Property and the Improvements,
including the specific units of new equipment as identified herein, as a production and
manufacturing plant.
IV.
Consideration
Jobs
4.1 The City has provided in its Guidelines and Criteria for Tax Abatements
substantially as follows: If an existing Employer owns or leases an Authorized Facility
(such as the Plant of the Owner herein), and it has plans to improve such property by
constructing new improvements on its real property or to add new personal property
(which includes equipment, such as that to be installed by Owner herein at the
Property), such existing employer may be eligible for tax abatement with respect to such
Improvements to its real property or its new personal property even though no new jobs
or newly created minimum annual payroll are created. In such cases, however, the
Owner is encouraged to retain as many jobs and as much existing annual payroll as is
economically feasible for the existing employer to be and remain competitive in its
industry.
4.2 The Owner agrees to retain sufficient employment levels to efficiently
operate and support its Plant operations and not to drop below 500 full-time employees
(with benefits) at any time during the term of this Tax Abatement Agreement.
5.1 In the event that (a) the Improvements for which an abatement has been
granted are not completed in accordance with this Agreement or the expenditure for the
Improvements does not meet the amount required herein; or (b) Owner allows its ad
valorem taxes owed the City to become delinquent and fails to timely and properly
follow the legal procedures for protest or contest of any such ad valorem taxes; or (c)
Owner materially breaches any of the other terms and conditions of this Agreement,
then this Agreement shall be in default. In the event the Owner defaults in its
performance of either (a), (b), or (c) above, the City shall give the Owner written notice
of such default. If the Owner has not cured such default within sixty (60) days of said
written notice, this Agreement may be modified or terminated by the City. Notice shall
be in accordance with paragraph 13.3. As liquidated damages in the event of default,
and in accordance with the requirements of Section 312.205 (a)(4) of the Tax Code of
the State of Texas, all taxes which otherwise would have been paid to the City without
the benefit of abatement, together with interest to be charged at the statutory rate for
delinquent taxes a determined by Section 33.01 of the Tax Code of the State of Texas,
with all penalties permitted by the Property Redevelopment and Tax Abatement Act and
the Tax Code of the State of Texas, shall be recaptured and will become a debt to the
City and shall be due, owning, and paid to the City within sixty (60) days of the
expiration of the above-mentioned applicable cure period as the sole remedy of the City,
subject to any and all lawful offsets, settlements, deductions, or credits to which Owner
may be entitled. The parties acknowledge that actual damages in the event of default
and termination would be speculative and difficult to determine.
VI.
Tax Abatement
6.1 Subject to the terms and conditions of this Agreement, and subject to the
rights and holders of any outstanding bonds of the City, a portion of ad valorem
Property taxes from the Property otherwise owed to the City shall be abated. Said
abatement shall be an amount equal to one hundred percent (100%) of the taxes
assessed upon the increased value of the Improvements made by Owner to the
Property described in Section III of this Agreement, over the value in the year which this
Agreement is executed, in accordance with the terms of this Agreement and all
applicable state and local regulations or valid waivers thereof; provided that the Owner
shall have the right to protest or contest any assessment of the Property and said
abatement shall be applied to the amount of taxes finally determined to be due as a
result of any such protest or contest. For the purposes of this Agreement, the initial
value of the existing real and personal property (not subject to abatement) shall be
deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District
as of January 1, 2017. The current abatement which is the subject of this Agreement
shall extend for a period of ten (10) years beginning January 1, 2019 as set forth
hereinabove in Paragraph 1.1 and as further set forth hereinabove in Paragraph 3.1.
6.2 The abatement granted herein shall be subject to and governed by the
Guidelines and Criteria for Tax Abatement, a copy of which is attached hereto as
Exhibit F and incorporated herein by reference, save and except that, in the event of a
conflict between the requirements of Exhibit F and this Agreement, this Agreement
shall control.
6.3 Owner covenants and agrees that subsequent to the date of this
Agreement, any application by Owner for a new tax abatement for equipment or real
property located within the Property and the Reinvestment Zone applicable to this
Agreement shall be subject to and governed by the City's Criteria and Guidelines for
Tax Abatement in effect at the time of the new application.
VII.
No Conflict of Interest
7.1 The Owner represents and warrants that the Property does not include
any Property that is owned or leased by a member of the Planning and Zoning
Commission of the City of Paris, nor by a member of the City Council approving, or
having responsibility for the approval of, this Agreement.
8.1 The terms and conditions of this Agreement are binding upon and
enforceable against and with respect to the successors and assigns of all parties
hereto.
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8.2 It is understood and agreed between the parties that the Owner, in
performing its obligations hereunder, is acting independently; the City assumes no
responsibility or liability in connection therewith to third parties; and Owner agrees to
indemnify and hold the City harmless therefrom. It is further understood and agreed
among the parties that the City, in performing its obligations hereunder, is acting
independently; the Owner assumes no responsibility or liability in connection therewith
to third parties; and, to the extent permissible by law, the City agrees to indemnify and
hold harmless the Owner therefrom.
IX.
Compliance Provisions
9.1 City's Right of Access to Records: The Owner agrees that the City, its
agents and employees, shall have the reasonable right of access to records concerning
the Owner's investment in the Improvements for the purpose of conducting an audit of
the Project Improvements and Project costs. Any such audit shall be made only after
giving the Owner at least fourteen (14) days advance written notice and will be
conducted in such a manner as to not unreasonably interfere with the operation of the
facility. Upon request, the Owner will provide the City with a detailed Asset Report with
an itemized list of assets placed into service from the date of execution of this
Agreement to the date of completion. The Asset Report will provide for each asset a
unique serial and/or other identification number (if available), the date on which the
asset was capitalized, the acquisition amount, and the accumulated depreciation
amount. At the City's request, the Owner will provide actual invoices to support the
amounts shown on the Asset Report.
9.2 City's Rights of Access to Property: The Owner further agrees that the
City, its agents and employees, shall have reasonable right of access to the Property to
inspect the Improvements in order to insure that the construction of the improvements is
in accordance with this Agreement and all applicable state and local laws and
regulations or valid waiver thereof. After completion of the Improvements, the City shall
have the continuing right to inspect the Property to insure that it is thereafter maintained
and operated in accordance with the Agreement during the term of the Agreement. All
inspections will be made only after giving the Owner written notice at least seventy-two
(72) hours in advance, and such inspections shall be conducted in such a manner so as
not to interfere with the operation of the facility. Representatives of the City inspecting
the Property and Improvements shall be accompanied and by one (1) or more
representatives of the Owner and shall sign an Agreement promising to maintain the
confidentiality of any information they obtain in connection therewith except for the
purposes of assessing and collecting ad valorem taxes and verifying or enforcing
compliance with this Agreement, or as otherwise required by law. Said representative
shall also be required to observe any facility rule and regulation applicable to the
Property. Nothing herein shall be construed as limiting the City's ability to perform
inspections or to enter the Property the subject of this Agreement.
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9 -M. -HIM
10.1 Annual Report on Improvements for the Years 2018-2022: For each of
the years 2018 through 2022, Owner further agrees that it will by April 15"' provide City
with a sworn report, written on Owner's company letterhead and signed by a
designated representative of Owner, containing information on improvements applicable
to the most recent concluded calendar year as follows:
(a) Copy of the printout from the Lamar County Appraisal district showing the
market value of the Property prior to the construction of the Improvement;
(b) Detailed description of Improvements;
(c) Copy of or identification of plans and specifications of constructed
Improvements and the location of the same for inspection by City's
certification team;
(d) Actual cost of capital Improvements; and,
(e) Date of substantial completion of the Improvement as set forth in
paragraph 3.1 hereof.
10.2 Annual Report on Compliance for Each Year of the Abatement
Period: In addition to the reports required in Paragraph 10.1 hereinabove, for the years
2018 through 2022, the Owner further agrees that it will provide the City by April 151h
with an annual sworn report which shall certify, in writing, that it is in compliance with
each applicable term of this Agreement. Such annual report shall be furnished in the
form attached hereto as Exhibit G and incorporated herein by reference. Owner shall
attach thereto copies of the employer reference summary page of its Texas Workforce
Commission Employer's Quarterly Reports for the calendar year immediately preceding
the date of the annual report required by this section, and the report shall contain a
sworn statement signed by the Plant Manager or an Officer of the Company certifying
that the information provided in the summary page is a true and valid report filed with
the Texas Workforce Commission.
10.3 The reporting requirements and deadlines set forth herein are an integral
and material part of this Agreement, and Owner acknowledges that failure to timely
submit any report or sworn statement required herein is a breach and default of this
Agreement as set forth hereinabove. Owner further agrees to timely submit said reports
and/or sworn statements without prompting by the City.
10.4 Owner shall submit all compliance reports required to by this section via
certified mail, return receipt requested, to:
N
City of Paris
c/o Office of the City Attorney
P.O. Box 9037
Paris, Texas 75461-9037
Alternatively, said reports may be delivered personally to the Office of the City Attorney
at 125 SP 15t St., Paris, Texas 75460.
City's 4Completior
11.1 Within thirty (30) days of receipt of each Annual Report on Improvements
required by paragraph 10.1 hereinabove, or as soon thereafter as practicable should the
City require additional information from the Owner, the City shall:
(a) review same for compliance with the terms of this Agreement;
(b) verify that the Improvements identified in the Report and required by the
terms of this Agreement have been completed;
(c) and, if the required Improvements have been made, deliver a Certificate of
Completion in the form attached hereto as Exhibit D and executed by the
Mayor to the Chief Appraiser of the Lamar County Appraisal District. The City
shall attach to said Certificate of Completion a copy of the information
provided by Owner in the Annual Report on Improvements as an identification
of the Improvements upon which the tax abatement is to be granted.
11.2 In the event that the City requires additional information in order to
conduct the review and verification contemplated by paragraph 11.1 hereinabove, the
City shall notify the Owner of same as soon as is practicable, but no later than thirty (30)
days after receipt of the Annual Report on Improvements.
11.3 Nothing in this section shall prohibit the City from exercising its right to
declare Owner in default or Owner's right to cure same in accordance with the terms of
Section V hereinabove.
12.1 This Agreement was authorized by resolution of the City Council at its
regularly scheduled meeting on the 25th day of September, 2017, authorizing the Mayor
to execute the Agreement on behalf of the City.
12.2 This Agreement was entered into by Kimberly-Clark Corporation pursuant
to the authority granted to the authorized official whose signature appears below.
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12.3 This Agreement shall constitute a valid and binding Agreement between
the City and Owner when executed in accordance herewith, regardless of whether any
other taxing unit executes a similar Agreement for tax abatement.
13.1 No officer, official or agent of the City has the power to amend, modify or
alter this Agreement or waive any of its conditions or to bind the City by making any
promise or representation not contained herein.
13.2 This Agreement, except by operation of law, shall not be assigned or
transferred by Owner, without the prior written consent of City, which consent shall be at
the sole discretion of the City.
13.3 Any written notice required or permitted under the terms of this Agreement
shall be given and be deemed to have been duly served if either (1) delivered in person,
or (2) deposited certified mail, return receipt requested, postage prepaid in the United
States mail, addressed to the designated representative of the respective parties which
are designated as follows:
Owner
KIMBERLY-CLARK CORPORATION
Attn: James Alspaugh, Plant Manager
2466 F.M. 137
Paris, Texas 75460
With a Copy To:
Mr. Kirk Glasby
DuCharme, McMillen & Associates, Inc
12710 Research Blvd., Suite 305
Austin, Texas 78759
City
City Manager
City of Paris
P.O. Box 9037
Paris, Texas 75461-9037
City Clerk
City of Paris, Texas
P.O. Box 9037
Paris, Texas 75461-9037
Office of the City Attorney
City of Paris, Texas
P.O. Box 9037
Paris, Texas 75461-9037
13.4 If any term or provision of this Agreement shall be declared
unconstitutional or void by any court of competent jurisdiction, the constitutionality and
validity of the remainder of said Agreement shall not be affected thereby, and to this end
the terms and provisions of said Agreement are declared to be severable.
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13.5 This Agreement sets forth the entire understanding between the parties,
and any other understandings or agreements shall be canceled and superseded by this
Agreement upon the date of execution hereof. None of the terms of this Agreement
shall be waived, discharged, altered or modified in any respect except by an agreement
in writing signed by both parties and specifically referring to this Agreement. The
captions in this Agreement are included for convenience only and shall not be taken into
consideration in any construction or interpretation of this Agreement or any of its
provisions. This Agreement is performable in Lamar County, Texas, and shall be
governed by, construed and enforced in accordance with the laws of the State of Texas.
The provisions of this Agreement shall apply to, bind and inure to the benefit of the City,
Owner, and their respective successors, and permitted assigns, if any.
13.6 Venue for any actions arising under this Agreement shall lie exclusively in
the courts of Lamar County, Texas, for any state court action, and in the U.S. District
Court for the Eastern District of Texas for any Federal Court action
Witness our hands this 25th day of September, 2017.
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Janice Ellis, City Clerk Stephanie H. Harris, City Attorney
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II....IIS °.I... OF E::.:, IHIIII IT&
..............................................................................................................
= The Property—Legal description of the property within the Enterprise Zone and
diagram of the buildings in which the Improvements are to be made
I := Field notes or plat of the Kimberly-Clark Plant in Paris, Texas
Detailed descriptive list of the new Improvements which are the subject of this Tax
Abatement
= City of Paris Certificate of Completion
II..... Completion Chart Showing Plans for Capital Investment to Install the Improvements
by the Company and Tax Abatement
F,= City of Paris, Texas Guidelines and Criteria for Tax Abatement
= Form for Annual Report on Compliance
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The City of Paris, Texas has included the property described in Exhibit A
attached hereto into an Enterprise Zone established by Ordinance No. 2016-034 and
has executed a Tax Abatement Agreement with KIMBERLY-CLARK CORPORATION,
(the "Company"), for certain improvements and other equipment (the "Improvements")
to be installed at the Company's plant located in Paris, Lamar County, Texas.
Based on information provided by Company, and verified by the City, the City of
Paris herein verifies that the Improvements agreed to be built, installed and used in the
calendar year have in fact been completed as provided for in the Tax Abatement
Agreement.
NOW, THEREFORE, the City of Paris authorizes that the property described in
Exhibit A attached hereto shall receive a tax abatement during each year through the
end of the term the Tax Abatement Agreement equal to 100% of the taxes assessed
upon the increased value of the real and personal property of the Company located in
Paris, Texas, over the value at which the property was last appraised on January 1,
2017, which is the year in which the Tax Abatement Agreement was executed, as
recited in the Tax Abatement Agreement. The tax abatement will extend for a duration
of _ years, with the tax abatement beginning January 1 . ........................._, and ending
December 31, 2028.
APPROVED this ........... ............................... day of
llayoii,,,
Janice IEllis, City Clerk
Mftl�bo ti JA
Stephanie IIS. IHarris, City Attorney
IN
'11'ax Abal,ement J�R.equiest Applileafilolin,
puis, "I 11rocas
(City of Parus, Larnar Count, & Pads,,Jr Ciofl!ge)
Y !� I
SECTION -4-S,
1) General Description of Improvements as Planned
2) Projected New Value to the Property
TIT77=104- Proice-19-io-WVolve C XCVT macr wL"M I rig
machinery used in the manufacturing process to keep Paris Plant's diaper and pant
production lines state-of-the-art in efficiency, speed and quality.
1111 -
into (See Attachment) in taxable value of personal property subject to depreciation of up to
10 years. A projected schedule of incremental increases in taxable value in the first five
Vears is as follows:
_IF(Aal. �1. 2�114194,1 10 0
April 2015 updated October 2015 6
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RESOLUTION NO...ZQ 1,.6=03 . . ....... ... ..............
R3
110 3e 31, VX 9 MA A 1 OM I 0,
WITMAS, Section 312.002 of the Texas Tax Code requires local taxing units to state their
intent to participate in tax abatement agreements and to adopt guidelines and criteria for granting tax
abatements every two years; and
WHEREAS, these updated policies, guidelines and criteria for tax abatement agreements were
reviewed and approved by the Paris Economic Development Corporation Board at their meeting on
November 17, 2015, a copy of which is attached as Exhibit "A", and incorporated herein by reference,
hereinafter referred to as "Agreement"; and
WHEREAS, the City Council of the City of PI Texas hereby affirms its intent to be eligible to
participate in tax abatement in accordance with Chapter 312 of the Texas Tax Code and to adopt the
Guidelines and Criteria for Tax Abatement attached hereto and incorporated herein as Exhibit "A;" and
WHEREAS, a three-quarters majority vote of the City Council of the City of Paris, Texas is
required to amend the Guidelines and Criteria for Tax Abatement.
Section 1. The findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. The City hereby elects to be elble to participate in a tax abatement program and
2pproves and adopts the amended Guidelines and CMeria for Tax Abatement attached hereto and
incorporated herein as Exhibit
TTEST-
,c
!;F
"I
ice Ellis, City Clerk
(Updated 1-11-16)
POLICY STATEMENT
.. .. .. .. .. .. . I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.�,.� .. .. .. .. .. . I.I.I.I.I.I.I.I.I.I.I-1--,.-.-.,.,.,.�-.1.1.1.1.1.1.1.1.1 .. .. .. .. .. .. .. .. .
41 an,4 4�b Creadoit C'rlter a
... ....... ..... ....... ........... .. .. . . ......... ynD I
.. .. .. .. .. . . .....
Value and I
The governing bodies of the local Taxing Jurisdictions will decide whether to grant a tax abatement to aii-
Term of
applicant, and the amount, if any, of such abatement, on a case-by-case: basis and in accordance with these
Abatement !I
Policies, Criteria and Guidelines. 11!
2.
The tam of abatements granted under any agreement may not exceed that permitted by applicableme
state law.
3.
The amount of the abatement shall be based upon a percentage (0 to 1009%) of all or a portion of the
eligible property within the authorized facility.
4.
Abatements may only be granted for the additional value of eligible real and personal property
improvements made pursuant to and listed in a between the Taxing Jurisdictions and property
owner and/or lessee, subject to such limitations as the Taxing Jurisdictions may require.
5.
Real property tax abatement may be granted only to the extent that its value fi)r each year of the agreement
exceeds its value for the year in which the agreement is executed.
6-
If a modernization project includes the replacement of improvements within an authorized facility,
the vat= of � replaced
The criteria used to evaluate a proposed project application for abatement includes, but is not limited to:
I .
The dollar amount of the increase in the tax roll.
2.
The number ofjobs created or retained by the employer involved.
3.
The possible effect on attracting other taxable m43rovements into the Taxing Jurisdictions.
4.
The nature of and overall effect on the Taxing Jurisdictions.
5.
The efied on the sakly, health, and morals of the Taxing Jurisdictions! residents.
6.
Any substantial long-term adverse effect on the provision of the Taxing Jurisdictions' services or tax base.
7.
Meeting all relevant zoning requirements.
8.
Consistent with the comprehensive plan of the City of Paris aW County of Lamar.
9.
The types and cost of public improvements and services (water and sewer main extensions, streets and roads,
required of theTaxing Jurisdictions.
10
Th and values of tic kpiuv'fl ents to be fiunished by the r,ll,aI,.
FN71,W,7kT,7R, ;A I f T','
1,101 1 4 11111111
'Affy) a
A 1 pi 0190 &N-;NIHOFAI;� I MA
14
.. .. .. .. .. .. . I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.�,.� .. .. .. .. .. . I.I.I.I.I.I.I.I.I.I.I-1--,.-.-.,.,.,.�-.1.1.1.1.1.1.1.1.1 .. .. .. .. .. .. .. .. .
41 an,4 4�b Creadoit C'rlter a
... ....... ..... ....... ........... .. .. . . ......... ynD I
.. .. .. .. .. . . .....
(Updated 1-11-16)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
............ . . . . .
f = „iF ''##`t #'-', x�A;"-., K;"'"#" ""� ,.., -. i,� ,i, ', l,:t #it. '#"�,#, ;� ""4. ,ll�
I I A -
'Y W
An additional 20% abatement for new job creation is available based on the following requirements:
a. A project that creates a minimum of 10 new jobs.
b. The newjob wages are equal to or greater dm the current County average wage for all private sectorjobs excluding
m -tail trade and accommodation and food services ($41,158 annually for 2013. Source: Texas Workforce Commissio-ii,
(Updated 1-11-16)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
via www.tracer2.corn. (Note: Ms represents 547 companW 10,470jobs and 56Y6 of allprivate sector employme
in Lamar County)
c. The =ing jurisdictions and the company must agree to include measuring, tracldng and annual reporting of the net
job increases (existing jobs plus newjobs) for the entire term of the abatement agreement.
L 10 newjobs minimum.
:2. Now job wages = or > average annual
wages forprivate sectorjobs in Lamar
County. (Excluding reWl, acconnnoMms, food
service. See &M 9.b. abovt)
3. Agree to maintain existing base and new
jobs during the entire term of agreement.
4. *Year I cannot exceed 100%.
%T11. Tax Abatement for Existing Employers Regarding Real or Personal Property.
The Taxing Jurisdictions recognize the value of its existing employers to the wellbeing of the
City and County. The Taxing Jurisdictions desire to encourage existing employers to remain in
the Taxing Jurisdictions and to improve their respective businesses and industries, as well as their
jw,rofitability.
#
a -M 71 -MMA- mydr-717
MM IAWVr7?WG V& W
property by conshvcting new improvements on its real property and/or adding new personal
M; operty to its authorized facility which qualify for tax abatement under these Policies, Criteria
and Guidelines, such employer may be eligible for tax abatement with respect to such
improvements to its real property or its new personal property under the provisions of Article V
above, even if no now jobs or newly created minimum annual payroll are created.
(I pd I -11 -16)
POLICY STATEMENT
'CRITERIA AND GUIDELINES FOR TAX ABATEMEMP
W-Wrim"W"EngmRwi� W 1- V
J- MI1
-luleigi AAUW-� Akk
existing annual payroll as is economically feasible for the existing ernployer, while remaining
wmpetitive in its industry.
V11. Greenfield projects
In order to encourage the development of greenfield properties and also to be able to expedite
certain new mil cts, 6
JVVII,�,U6,17ty W 4,A�L'104 Mtf 1 -T -171M 1-77 Wt IMM -711 71 -alVe 1-967TUT 071 Tv 117771- Tur projects
exclusively involving greenfield properties.
41 1
V,
Any present or potential owner of taxable propefty in the Taxing may request tax
abatement bjLfift a wri I -or twi— -Manw-A} �
a cW of the a theation forwarded by the to the Executive Director of the Paris EDC.
The application shall consist of a completed application &;—m7� ;';411 4anied by the following: 7
general description of the improvements to be undertakm together with the projected new
value to the property and the type of business operation propose&
2.
A detailed descriptive list of the improvements for which abatement is requested.
3.
A list of the kind, number, and location of all proposed improvements of the property.
4.
A list of the number and type of jobs created, including information pertaining to anticipated
job transfas (if any).
5.
A metes and bounds description and plat of the proposed reinvestment zone that shows an
roadways within 200 feet of the reinvestment zone and all existing zoning and land uses
within 200 feet of the reinvestinent zone.
6.
A time schedule for undertaking and completing "i improvements.
7.
The type and value of any additional economic development incentives requested.
8.
Any other information about the proposed project as may be required by the Taxing
Jurisdictions or as deemed desirable by the raxing Jurisdictions.
L
AA applications will be initially reviewed by members of the Tax Abatement Advisory
Committee.
2.
An initial project briefing meeting will be conducted between the company's representatives
and the Tax Abatement Advisory Committee.
3.
The Committee will evaluate the request for tax abatenmt in acc"dance with these crite&
and guidelines and will make its recommendation to the Paris City Council, Lamar County
Commissioners Court and Paris Junior College Board for their review and approval,
4.
After the Paris City Council has been briefed on the proposed tax abatement offer and they
have directed the Committee to move forward, the Paris City Attorney will draft the initial tax
abatement agreement for review by the Tax Abatement Committee, the PEDC Board and
representatives of each Taxing Jurisdiction.
5.
Electronic versions of the City's abatement agreement will be provided to the County and i
PJC so all agreements have consistent language, terms and conditions.
6.
Following Tax Abatement Committee review of the draft agreement, it will be sent to the
applicant's legal counsel for review and comment Any changes requested by the t, 3,
applicant will be reviewed and considered by the Committee and City Attorney.
7.
Once the Agreement is finalized, it will be placed on the PEDC Agenda for review and action
by the PEDC Board.
a.
Once the Tax Abatement Agreement has been formally approved by the PEDC Board,
Agreement shall be forwarded to the Paris City Council, Lamar County Commissioner'r
Court and Paris Junior College Board of Regents for finat consideration and action.
(Updated 1-11-16)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
mandated by state law under the PropoV Redevelopment and Tax Abatement Act prior to the
designation of a reinvestment zone and execution of a tax abatement agreement.
2. The lead Taxing Jurisdiction (typically the City of Paris) may adopt an ordinance designating a
tax abatement reinvestment zone only after notice of a public hearing has been published at
least seven (7) days before the date of the hearing, and all other procedural requirements of
Tax Code have been satisfied.
In order to enter into an agreement the Taxing Jurisdictions must find that -
The terms of the proposed agreement comply with these Policies, Criteria and
Guidelines.
2. There will be no substantial adverse cffba on the provision of Taxing Jurisdictions' services
or tax base.
3, That the planned use of the property will not constibite a hazard to public safi*, health or
morals.
4. incident to approval of any ordinance designating a reinvestment zone, the Taxing
Junsdictons shall find that the improvements sought am feasible and practical and would be a
benefit to the Imid to be included in the ,;n -,44 zone and to the Taxing Jurisdictions
aft" the
E
WO
N *;, �5 M VE= 'A
MA
hi shall the term
,To �&&pti(w-pW % �toggy__e_r_ that in no event of an.,
an
Maw= M
sh7:11 require the affirmative vote of 'f ",4 (3/4) of the members of each of the Taxing
j urisdictionsi !n ody.
does not limit
The adoption of these Policies, Criteria and Guidelines by the Taxing Jurisdictions
the discretion of the Taxing Jurisdictions' governing bodies to decide whether to enter into a
specific tax abatement agreemcnL Nor does it linut their discretion to delegate to their employees
articular
the authority to determine whether or not the Taxing Jurisdiction should consider a p
application or request for tax abatemient, or create any property, contract, or other legal nght in anY
person or entity to have the Taxing Jurisdiction consider or grant a specified application or request
for tax abatement
V1111. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terms and conditions to be included in any formal tax
abatement legal agreement.
IX. Amendments to Policies, Criteria and Guidelines
These Policies, Criteria and Guidelines are effective for a two (2) year period from the date of
their adoption, unless amended earlier by the affirmative vote of three-fourths (3/4) of the
members of each governing body (City, County,
Paris Economic Development Corporation
1125 Bonham Street I
Paris, Texas 75460
how 903-78446964
Fax: 903-784-2503
Website: wwyw.p,
Iristexasusaxom
0
(Updated 1-11-16)
POLICY STATEMENT
rlkl-T-E-117111.4, AN"tYIDE-L—HI�E����WT
Authorized
Commercial or
Industrial Facility
Authorized
. . . . . . . . .....
Regional Tourist
Entertainment
Facility
itesearch Facility
Baseyearvalue
loy
Reinvestment Zone
,F,j� �Zone
Job or Jobs
Tull -time —Equivalent
(FTE) Jobs
'Hill'
M"NOWN Owl
The City Council 01 the i�;Ity`--01 tws MRY 8150 QMY3b';W =Xds V4.
properties may be considered for abatement of City taxes only. The City of P" will
approve their residential abatement policies, criteria and guidelines separate from these
The purpose of Wincz a of Wilrbe t"'he Maritime oi
processing of such goods or materials by physical or chemical change. Facilities
primarily engaged in assemblitig component parts of manufactured products are also
considered manufac ilities.
Used pnmanjy x rcucivu,
the goods or servioes are distributed to points at least 100 miles from its location in the
Taxing Jurisdictions of Paris and I-aluar—
XT
alum,
creation of new jobs and bring new wealth into the Taxing Jurisdictions (c.g. healthcare -
related industrie
Any industry creating "pri
ary ohq
ojn
Mj- detmed a that is avafldble-�� foi,
which a majority of the products or services of that company am ultimately exported to
regionaL statewide, national, or international markets infusing new dollars into the IOCal
. ...................... .. ..............
'A A
employer as a worker or employee of an =VIDY'nent agency Or employment savice- "Jobs"
also includes "Full-time E ivalent Jobs" defined below.
(Updated 1-11-16)
POLICY STATEMENT
*CRITERIA AND GUIDELINES FOR TAX ABATEMEN2;
1. An individual working 40 hours per week in ajob defined above.
2. A number of pait-tim jobs where the hours worked in each such job is less than 40 hours
per week made available by one employer and added together to total 40 hours per weelL
For example, fourteen (14) put -time jobs made available by one employer where all such
part-time jobs added together require a total of 380 hours of work per week (but no such
part-time job requires 40 hours of work or more per week), will equal nine and one-half
(9.5) FTEjobs (380 hours divided by 40 hours per week equals 9.5).
3. FTE jobs do not require the emplon to receive benefits from the aLo
The replacement and upgrading of existing facties, which increases the productive input or
output; updates the technology, or substantially lowers the unit cost of operation.
n. may result from the construction, alteration or installation of buildings,
machinery or equipment, but shall not be for the purpose of reconditioning,
r ' * . or.deferred maintenance.
. . it . . . . . . .
Machinery, cqaw for tax
abatement, which can be removed fi-orn an authorized facil!!y.
WV, 44 14:111,41,41,
The Tax Abatement Advisory Committee will be convened from time to tim by the Pon's
Economic D"elopment Corporation to study, review and recommend tax abatements to the
applicable Taxing Jurisdictions in the City of Paris and Lamar County, Texas. The Tax
Abatement Advisory Cominuttee will be composed of one person from each of the Taxing
Jurisdictions: the City of Paris (the City Manager or design=), the County of Lamar (the
County Judge or designee), Paris Junior College (the President or designee), the Chief
Appraiser of the Lamar County Appraisal Dist, d the Executive Duector of the Paris
Economic Development Corporatiozi. Recommendations from the Tax Abatement Advisory
Committee shall be decided by majority „i„ of the representatives from the three taxing
entities referenced above.
(Updated
POLICY STATEMENT
CV.ITERIA AND GUIDELINES FOR TAX ABATEMENT
APPENDIX B
Abatement Agreement Terms and Conditions
After approval, the Taxing Jurisdictions shall formally pass an order or resolution and authorize
the execution of an agreement with the owner and/or lessee of the authorized facility, which shall
include, but not be limited to the following terms and conditions:
Contract Terms & Conditions
(Updated 1-11-16)
POLICY STATEMENT
LCRITERIA AND GUIDELINES FOR TAX ABATEMENI
11
W4 00 V-1t0l
MDdi cations
of AVwment
beyond the time -Y State law.
"t be assigned to a new owm or lesWe of the auth0fizOd fiLcilitY OnlY with the
fillnuMoir W,
kAll
Al
11
16WENJ 111 311 1
Annual Certificate of Corn pliancelNon-Comp llance Year -
Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas
And Kimberly-Clark Corporation Dated September 25, 2017
X:;
Kimberly-Clark Corporation (the "Company") hereby certifies that:
(1) All ad valorem taxes have been paid to City and all other taxing entities.
(2) The Company has retained sufficient employment levels to efficiently
operate and support its plant operations.
(3) The Company has continuously operated the Property and Improvements
described in the Agreement as a production and manufacturing plant.
(4) The Company submits herewith and attaches hereto copies of the
Employer Reference summary page of its Texas Workforce Commission
Quarterly Reports for each quarter of
(6) All other terms and conditions of this Agreement have been complied
with.
Kimberly-Clark Corporation hereby certifies that the company is not in
compliance with its agreement with City of Paris for the year ..................................
Please Circle the number of the item(s) above in which you believe that you have
failed to comply.
STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned notary, on this day personally appeared
the affiant, a person whose identity is known to me. After I
administered an oath to affiant, affiant testified:
"My name is . I am capable of making this verification. I have
read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within
my personal knowledge and are true and correct, and I further certify that the Employer
Reference summary pages are true and valid copies of those reports filed with the Texas
Workforce Commission."
Certificate of Compliance/Non-Compliance
Page 2
Sworn to and subscribed before me this the day of 20
Notary Public, State of Texas