11 - Resolution Approving Agreement to Terminate Tax Abatement Agreement with Campbell SoupIM, 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING AN AGREEMENT TO TERMINATE TAX
ABATEMENT AGREEMENT DATED FEBRUARY 25, 2013 BETWEEN THE
CITY OF PARIS AND CAMPBELL SOUP SUPPLY COMPANY, LLC; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE,
WHEREAS, heretofore, on February 25, 2013, the City Council of the City of Paris, Texas
and Campbell Soup Supply Company I -LC ("Canipbell Soup" or "the Company") entered into the
Tax Abatement Agreement (the "Agreement") attached as an Exhibit hereto and incorporated by
reference as if fully set forth herein, related to the Company's Single Serve Beverage Line; and
WHEREAS, heretofore, ozi October 23, 2017, the City Council approved an Addendum to
Tax Abatement Agreement (the "Addendum"), also attached as an Exhibit and incorporated by
reference as if fully set forth herein, modifying certain terms of said Agreement; and
WHEREAS, the term of said Agreement, as modified by the Addendum,, expires on
December 31, 2020; and
WHEREAS, said Agreement relates to property owned by the Company within the City of
Paris, which property is located within an Enterprise Zone as set forth In the Agreement; and
WHEREAS, the Texas Tax Code Sec. 312.208(b) provides that a tax abatement
agreement may be terminated by mutual consent of the parties in the same manner that the
agreement was approved and executed-, and
WHEREAS, due to prevailing conditions in the industry, the Company has determined to
replace the Single Serve Beverage Line at its PROPERTY with a new product line; and
WHEREAS, as a result of this determination, the Company has asked to terminate the
Agreement; and
WHEREAS, at the tirne of approval of this Agreement to Terminate Tax Abatement
Agreement Dated February 25, 2013 Between the City of Paris, Texas and Campbell Soup Supply
Company LLC (the "Termination Agreement"), Campbell Soup is in compliance with the terms of
the Agreement, as modified by the Addendum; and
WHEREAS, the City Council has agreed to said termination of the Agreement as
modified by the Addendum because the replacement of the Single Serve Beverage 1.,ine with a new
product line is in the best interest of the City and the Enterprise Zone in which it is located in that it
will contribute to the SLIstainability and growth of the Company's property; and
WHEREAS, termination of the Agreement as modified by the Addendum is consistent
with encouraging development of said Enterprise Zone in accordance with the purposes for which
it was created and is in compliance with the City's policy on tax abatements and all applicable laws
and otherwise serves a public purpose in maintaining a niaJor employer in the City;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
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 Tax Abatement Agreement dated February 25, 2013
between the City of Paris, Texas and Campbell Soup Company, L.L.C. should be terminated.
Section 3. That the terms and conditions of the proposed Agreement to
Terminate Tax Abatement Agreement Dated February 25, 20 13 Between the City of Pal -'is,
Texas and Campbell Soup Supply Company LLC attached hereto as Exhibit I 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 said Termination
Agreement on behalf of the City of Paris
Section S. That this approval and execution of the agreement on behalf of the
City is not conditioned upon approval and execution of any other termination of tax
abatement agreement by any other taxing entity,
DULY PASSED AND APPROVED this 23rd day of October, 2017.
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice E'llis, City Clerk
APPROVED AS TO FORM:
Stephanie H. I farris, City Attorney
THE STATE OF TEXAS
COUNTY OFLAMAR
11111, VII U
0 W Diu aly-1
L
This Agreement to Terminate (the "TERMINATION AGREEMENT") a lax Abatement
Agreement (the "AGREEMENT") dated February 25, 2013 is entered into by and between the
CITY OF PARIS, TEXAS ("CITY"), a Texas municipal corporation situated in Lamar
County, Texas, acting by its authorized officer whose signature appears below, and
CAMPBELL SOUP SUPPLY COMPANY LLC ("OWNER") acting by andthrough its
authorized officer whose signature appears below.
WITNESSETH:
WHEREAS, heretofore, on February 25, 2013, the CITY and OWNER entered into the
Tax Abatement Agreement (the "AGREEMENT"), attached as hereto as Exhibit I of Exhibit A
hereto and incorporated by reference as if fully set forth herein, related to OWNER's Single
Serve Beverage Line; and
WHEREAS, heretofore, on October 23, 2017, CITY and OWNER entered into an
Addendum to Tax Abatement Agreement (the "ADDENDUMattached hereto as Exhibit A
and incorporated by reference as if fiffly set forth herein, modifying certain terms of said
AGREEMENT; and
WHEREAS, the term of said AGREEMENT, as modified by the ADDENDUM, expires
M n December 31, 2020; and
WHEREAS, said AGREEMENT relates to PROPERTY owned by OWNER within the
City of Paris, which PROPERTY is located within an Enterprise Zone as set forth in the
AGREEMENT;
WHEREAS, the Texas Tax Code Sec. 312.208(b) provides that a tax abatement
agreement may be terminated by mutual consent of the parties in the same manner that the
agreement was approved and executed; and
goo
WHEREAS, as a result of this determination, OWNER has asked to ten-ninate the
AGREEMENT; and
JJ
. .... . .. .
WHEREAS, the CITY has agreed to said termination of the AGREEMENT because the
replacement of the Single Serve Beverage Line with a new product line is in the best interest of
the CITY and the Enterprise Zone in that it will contribute to the sustainability and growth of
OWNER's PROPERTY; and
WHEREAS, termination of the AGREEMENT is consistent with encouraging
development of said Enterprise Zone in accordance with the purposes for which it was created
and is in compliance with the CITY's policy on tax abatements and all applicable laws and
otherwise serves a public purpose in maintaining a major employer in the CITY;
NOW, THEREFORE,
For all of the foregoing reasons, CITY and OWNER hereto do hereby mutually contract
and agree to terminate the Tax Abatement Agreement dated February 25, 2013 and attached
hereto as Exhibit 1 to Exhibit A and incorporated herein by reference, as modified by the
Addendum to Tax Abatement Agreement dated October 23, 2017 and attached hereto as Exhibit
A and incorporated by reference.
Henceforth, neither CITY nor OWNER owe any further obligations to one another as a
result of the AGREEMENT or the ADDENDUM.
d
ITNESS our hands this day o 2017.
THE CITY OF PARIS, TEXAS
Steven ,I4 Clifford, .M, :IIS,,, Mayor
ATTEST:
Jaiinu:iiee Ellis, r'w';ity Cleric
APPROVED AS TO FORM:
raw FORM 01 li'M ERNFlol got wolfroll -
Richard I Landers, Vice President
Tax & Real Estate
Secretary
1111ST OF.FX'MB.IT S TO THISAGREEMENT:
...................................................................
Exhibit .A-1: Tax Abatement Agreement dated February 25,2013
THE STATE OF TEXAS
This AddendumADDENDUM") to a tax abatement agreement ("the
AGREEMENT") dated February 25, 2013 is entered into by and between the CITY OF PARIS,
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
CAMPBELL SOUP SUPPLY COMPANY LLC acting by and through its authorized officer
whose signature appears below (hereinafter referred to as "OWNEW).
WITNESSETH:
VJ-*-
1 AX4"�* V I
WHEREAS, said AGREEMENT relates to PROPERTY owned by OWNER within the
City of Paris, which PROPERTY is located within an Enterprise Zone as set forth in the
AGREEMENT;
WHEREAS, the Texas Tax Code312.208 and tax abatement guidelines in effect in
2013 and on the date of the execution of this ADDENDUM (a copy of which tax abatement
guidelines effective January 11, 2016 are attached hereto as Exhibit 2 and incorporated herein
by reference) allow for modifications of a tax abatement agreement during the term of said
agreement; and
WHEREAS, due prevailing conditions in the industry, OWNER has determined to
replace the Single Serve Beverage Line at OWNER's PROPERTY with a new product line and
therefore, OWNER has requested certain modifications to the AGREEMENT relating to the
number of eniflo=es OWNER is re:s�uired to maintain on the Sin le Serve Bever aSe1-Linw4&W
PROPERTY during the AGREEMENT; and
WHEREAS, the CITY has agreed to said modifications of the AGREEMENT because
sM id modifications are consistent with encouraging development of said Enterprise Zone in
accordance with the purposes for which it was created and are in compliance with the CITY's
policy on tax abatements and the ordinance creating such Enterprise Zone adopted by the CITY
the CITY;
NOW, THEREFORE,
The CITY and OWNER hereto do mutually contract and agree to modify the
AGREEMENTas follows:
A. Section V, "Consideration (Jobs)" is hereby amended in its entirety to read as
follows:
Ile new line of business described above to be conducted at theTRUPEKYT, provided, however,
that this number of employees may vary one way or another by a few employees as this
I"ROJECT nears the commencement of its operations.
gle julip) list IM 0i rtis tom or.) Por -2 V-) mvilla o I [.a
MMM",
Janice Ellis, C,,ity Clerk
Stephanie.H.Llarris,, 'Jit Att micy
y D
LI;
M
,Steveli!-1 J CK11101IIA".M.D., Mayor
M
Richard L.L.zffliders:, "Vicie.pre-sident
Tax� &Rea] E�,,aee
IQ
LIST IDDU!J.I.I: :iIIC"]III S "11DIE") ":IIICFUSARD] ol'DIIIE :
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T1 7.( x,t ;� x: ,; ll `; 111111,111111
�,
.....
AbatementsExhibit 2: CITY'S Guidelines and Criteria for Tax d January 11,
iii
RESOLUTION No. 2013-011.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH
CAMPBELL SOUP SUPPLY COMPANY LLC, MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE
DATE.
wilicn Lq arracnea nereto as hxnwit --A , anu
"Agreemene; and,
WHEREAS, a public hearing was held before the City Council on February 25, 2013, to
allIf w interested persons to comment on the proposed Tax Abatement Agreement, and,
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 thereof
meet the Guidelines and Criteria for Tax Abatement and should be approved, and that the
Mayor should be authorized to execute it on behalf of the City of Paris, Texas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS,
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 attached hereto as
rxrkf"" 2ni *,G for Tax
Abatement adopted by the City of Paris by Resolution No. 2012-072 passed on August 13, 2 012.
Section 3. That the terms and conditions of the Tax Abatement Agreement between
R,. b6� the Ci[ uncil 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 Paris substantially according
to the terms and conditions set forth in the Agreement attached hereto as Exhibit "A".
Section S. 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.
11 111 pill
FAII,*11,111,
of-, "nice �Eliis, City Clerk
THE STATE F TEXAS
TAX ABATEMENT AGREEMENT
agreement4 into by and between the CITY OF rr
municipall f 7 fi el in Lamar County, Texas, acting by and through its authofized
officer l g#.ture appears below 1 and CAMPBELL
SUPPLY
r y q
ANY7 LLC, acting by and through its authorized officer whose
appears : below 4 as " O f
WITNESSETH:
WHEREAS, the City Council of the City of did heretofore, l day of
August, 2012, in Resolution No. 2012-07, elect to be r participate if tax abatement
agreements I order l maintain andenhance the commercialand industrW economicand
employment base of the Paris area for the long term interest and benefit of the City and its
and,
f I I
F
website 11Exhibit attached ` 1fheretoandmadet. part hereof for purposes; and
WHEREAS, 1`contemplateduseoftheIMPROVEMENTS,as hereinafterdefined,
the amount forthAGREEMENT upon f PROPERTY
w it r
-1
ther► � and l l I ` 1.� � 1 `:'.1 1,� r w l ..: ♦ l Ll (hereinf f� 1,
4 Mune 1F 7: purposes l ii f' 1 are in
_, ,
complian
with the CITY's policy on ►, andtheordinance creatingsuch Enterpri
Zone adopted 1the CITY andall applicable and
f:.
WHEREAS, the City Council of the City of Paris did heretofore, on the 13'ffi day o
August, 2012 in Resolution pass and adopt appropriateguidelines a cri
governing tax abatement agreements to be entered into by the CITY as required by the
Redevelopment and Tax Abatement Act, as amended;
NOW, fE` 1
The Parties hereto ll mutually contractand agree as follows:
1.1 The effective date ofthis AGREEMENT is the 250' day of February, 2013, wit,
tax abatement beginning with the tax year commencing January 1, 2014, and expiring on
December 31, 2020.
11.
Area to be Improved
2.1 The PROJECT consists of new building modifications to the real property of the
OWNE& and the addition and installation Of equipment and Personal Property described in
Article III bel hhU2&.,j:01A6*14Wz�K aj
the OWNER'S plant in Paris, Lamar County, Texas. Collectively, all such improvements which
are the subject hereof shall be called the "B4PROVEMENTS". 'Me IMPROVEMENTS shall be
located upon and within the OWNER'S current facilities consisting of the OWNER'S land also
described in Exhibit , attached hereto and made a part hereof for all purposes (as are all
Exhibits which are mentioned herein), and within the building at the location shown within the
drawings attached hereto as Exhibit Bl. The land and building are herein called the
"PROPERTY".
III.
Improvements
3.1 The installation of the IMPROVEMENTS will require engineering, design and
construction work to prepare the site within OWNER'S building where the newequipment will
be located, and the procurement of equipment, infiastructure and utties modcations and
electrical and mechanical installation. The IMPROVEMENTS are being made to enable the
OWNER to manufacture singIe-serve beverages in aluminum containers at the PROPERTY.
The single -serve beverages will consist of red juices, Fusion, potential for teas and potential for
carbonated products. The aluminum container sizes to be manufactured will be 5.5 ounce, 8.4
.tunce and 11.5 ounce. The IMPROVEMENTS are described as fbilo
A. To the real property of OWNEX building modifications to support proper
operation and sanitation of the installed equipment. This includes utties, floor,
wall, and ceng finishes, as well as some structural improvements to the building
to support static, live and dynamic equipment loading.
B. Container Delivery, to consist of depalletizer for purchased aluminum containers
and dedicated container lines by diameter to filling operation.
C. Prep Operation, to consist of multiple ingredient handling systems and hold/pre-
blend tanks, and independent tomato paste standardization system.
D. Blending Operation, consisting of a single 1,000 gallon blend tank, supported by
pre -blend, 1old and feed tanks.
continuously operate and maintain the PROPERTY, including the specific units of new
machinery and equipment as identified herein, as a food production plant.
5.1 OWNER agrees that it will employ fift (50) full-time employees to operate the
new line of business described above to be conducted at the PROPERTY, provided, however,
that this number of employees may vary one way or another by a few employees as this
PROJECT nears the commencement of its operation.
6.1 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 aHows: its ad
wg� -XIkes; Im tc) *1W'.r1EA—m-7HRfaTFy
breaches any of the other terms and conditions of this AGREEMENT, then this
AGREEMENT shall be in default. In the event the OWNER defitults in its perfbrmance of
either (a), (b) or (c) above, then the CITY shall give the OWNER written notice of such
default and 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 Property 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 as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all
penalties permitted by the Property Redevelopment and Tax Abatement Act and the Property
Tax Code of k: of Texas, shall be recaptured and will become a debt to the CITY and
shall be due, owing, 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
lawfid 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.
11I.
Real and Personal Property Tax Abatement
7 71"Ti He 2 17 7 NO I WW LM I N
2
6-1 A detailed description of any miscellaneous items of office equipment and
I
the actual cost of such added office equipment;
(d) A copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by CITY'S
certification team;
7-4 ".14 n M, 174 RTIMMM � t I -
(g) The date of substantial completion of the IMPROVEMENTS as defined in
par&—AaTh 3.1 hereof
11.2 The OWNER firther agrees that it will provide CITY with an annual, sworn
report which shall certif�r, in writing, that it is in compliance with each applicable term of this
AGREEMENT. Such annual report shall be fin-nished on l provided by the City.
11.3 In addition to the annual report required under Section 11.2 herweof, tM
OWNER further agrees that it will provide CITY a copy of its Texas Workforce Commissi
Employer"s Quarterly Report within thirty (30) days of its filing of the same with the
Workfbrr&-r.n- I
12.1. This AGREEMENT was authorized by resolution of the City Counncil at
regularly scheduled meeting on the 25;h day of February, 2013, authorizing the Mayor
execute the AGREEMENT on behalf of the CITY.
III
j 11T
tr� pursuant w ne au-nonty:TS-101 to -LIC aJ1 A I On ZCU ANN,
whose signature appears below.
Itro 11 1 .
between 37e UM e neMMUL I
any other taxing unit executes a similar agreement for tax abatement.
H,
13.1 No officer, official or agent of the CITY hw the power to amend, modify or 11!19
0
13.2 M AGREEMENT, except by operation of law, UMI not be assigned or
transferred by OWNER, without the prior written consent of CITY, which consent shall be e -
sole discretion of
•. 4 r 'f f 1 f I r" 1- 1 f " "
`I 41-fWg—lven and be r" emed to have been duly served - r delivered in person, M
deposited certified mail, return receipt requested, postage prepaid in the United States mail,
addressed to the designated representativeof the respective parties1 are designated
follows:
OWNER:
Attn: RichardJ. Landers,"
►0NW Loop 286
Paris,
Witha coRy f
Caruso,Michael !..
Campbell Place
Camden,"8 10 1
Attn: City Manager
P. •Box 9037
I75461-9037
With a Copyto
#f " " (address 1 IkLvel
### 1 f f 1 I► # 4 I f { # ► # / r
of { AUZU4f I' ," r I" r i # 1
f f # I
understandingsof this AGREEMENT are declared to be severable.
13.5 This AGREEMENT sets forth the entire understanding between the parties, and any
other
upon 1 " date of execution hereof. None of of this AGREEMENT shall
► '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 areincluded # f only d shall not be taken intoconsideration
in
AGREEMENTiThists AGREEMENTany construction or interpretation of this ons.perfonnable4: shall be governed by, f 1 1
f enforced in accordanceI the laws of of provisions of
AGREEMENT shall apply to, bind and inure to the benefit of the CITY, OWNEF, and their
respective successors,and permitted gf. any.
13
13.6 Venue for any actions arising under this AGREEA4ENT 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.
ANION MMMMUVA' � 111 il
'W. Kent McIlyar, Ci�y Attomey
FNI-IRM
secre,ftq,
0
By: . ............. . ..... . .................
A. I HaAmi, A D., Wyor
By:
Richard I Landers, Vice President —
Tax & Real Estate
0
"M I, 7� 11111 !ll 4, Ill I �� 11111�111 lllll!,
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i I I i , i i , ; Pill
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Campbell Soup Plant
500 Loop 286 NW
a
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www-texuaitescardLeom
August 20, 2012
Map Layers
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2010
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Work FoTce
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2s described m the Agreement, which plant is located within an ENTERPRISE ZONE
esmblished by the United States Census in 2010.
The Company has conmplied with all of the terms of the Agreetnent, and the City of Paris
herein veres that the Improvements agreed to be built, installed and used have in fact been
completed as provided for in the Agreement.
..........
W& 00 ft"',
T
IN"G..4M 7, 7; =,.. r 7M�W
lm� - NO -
duration of seven M yew, with the tax abatement for the Improventents beginning Januay 1,
2014.
APPROVED this _ day of 20—.
........... 11 ............ . ... . . ..................
, ayo�r
. ..................................
Jaako.x� BUI is, Cit.,, Clir.,.irk
y
U"- T"WOWN's "WTORA
i . ...... . ............................
il. Dltyar, ilr.w'',ity,Aftoyniry
COMPbell SOUP
COMRa
Parls.'FX Plant
K" 1
Asset Value Real
1,376,103
UsefulUfa
1,307,297
Tatal InvaWneint
24,222,913
Wfears
e r r
Reall
1,376,103
40.0
$ 34,403
ME
22,846,710
1.
$ 1,523,114
T-- -_ -
- -
Rate/$0
1.0626
1.1365
CRY
.53107
1.3003
1.3261
County
0.43870
107,056
99,735
.UC
0.19700
83,782
78,855
NU.USD
$ 1.1215
91,897
85,612
Year ----- --------a
1
2
3 4 5 6 7
96 Tax Abated
42,405
1
10 1 1 1
Asset Value Real
1,376,103
1,341,700
1,307,297
1,272,894
1,238,491
, 4,1,169,685
161,001
Asset Val
21,300,627
19,605,767
18,207,686
17,396,742
16,477,047
15,1 ,22
14,259,637
Tax before
IL134 1.0216
1.0626
1.1365
1.20201.2544
1.3003
1.3261
CUty
115,894
107,056
99,735
95,415
90,539
83,782
78,855
County
99,483
91,897
85,612
81,904
77,718
71,917
67,688
PJC
42,405
39,172
36,493
34,912
33,128
30,656
28,853
Total
257,782
238,125
221,840
212,231
201,385
186,355
175,396
Abated Taxes
Ciity
115,894
107,056
99,735
95,415
90,539
83,782
78,855
County
99,483
91,897
85,612
81,904
77,718
71,917
67,688
PJC
42,405
39,172
36,493
34,912
33,128
30,656
28,853
Total
257,782
238,125
221,840
212,231
201,385
186,355
175,396
Taxes Realized
clay
_
-
-
-
County
PJC
-
-
-
Total
7 Yr Total AM
671,276
72,383
576,219
62,133
245,619
26,485
1,493,114
161,001
671,276
-
575,219
-
245,619
183,851
1,493,114
158,838
Year
72,383
-
62,133
5
26,485
-
161,001
MUSD Taxes
254,320 234,926
218,860
209,380
198,680
183,851
173,040 1,473,057
158,838
Year
1 2
3
4
5
6
7
8
Est Index Factor
IL134 1.0216
1.0626
1.1365
1.20201.2544
1.3003
1.3261
Est %good factor
0.92 0.84
0.75
0.67
0.60
0.53
0.48
0.43
" DO= I MFl..,i �14 J. =-- M
The City of Paris, Tom (herein called ft ty) is committed to enhancing the
encowaging new manufacturing industry and investment; to improving the City and its
infimstructure which attracts and supports development, and, to expanding the tax base,
employment opportunitic.% and the overall quality of life for its citizenry. Therefom the City will
give oonsidemiM on a case-by-case basis, to providing tax abatement according to state. law to
the owners of real property for projects which stimulate economic growth and diversifleation in
the City.
Tax aboament benefits may be made available to industrial, manufactutrin& distribution,
and service facilities currently in the City or locafing in the City if located in a designated
Eamprise Zone or Reinvestment Zone- Now facilities and stracUM as well as the expansion
and modernization of exisdng facilities and structure4 will be considered. Evaluation of a tax
abatunent request will be based on the information provided in the tax abatement application.
However, the City is under no obligation to provkie tax abatement to any Vplicant.
a) "Abatement"or "abatemanO means "tax abatement!'. which is the 0I-ntpanW—
exemption fmm ad valorem taxes of certain real and tangible pamnal property in a
Reinvestment Zone designated for econornic development purposes.
b) "Agreement" means the written agreement for tax abatement between a property
owner mWor lame and the City.
c) hAuthorized Factf . A MI ity may be eligible for abatement if it is a
R onabvt
evil Von Mion
a Facil f, a Distriion Facility. a Regional Towir
facility is a iNistoric WME SM11
Ustrict.
d) "Base Yew Value" means the assessed value of eligible property as of January 1,
preceding the daft of execution of the agreement plus the agreed upon value of eble
property improvements made after January 1, but before the execution ofthe agreernent. The
ff.m.e Year Value may be adjusted either up or down from year to year as per renditions by the
r,amar County Apprai W District,
f: 1 • I.:: 1 ei • 4 � A f t # A 4 A •
0 "Enterprise Zone" means an area of land designated as such under Chapter 2303
the Tam Government Code.
"Jobs" A Job" as used herein meansposition A of full-timeemployment for an
is provided the benefits normally offered by the Employer, such as heWth insurance, vacation
time and some form of red=ent benefit. A Job is not a position filled for the Employer as a
worker or employee of an anployment agency or service. "Jobs" as used havein includes 'Tull
time Equivalent Jobs'. as defitned below.
1 Equivalent Jobs" moma number ofpart-timejobs wherethehouums
in each suchjob is less then 32 hours per week, made available by one Employer and added
together. For example, sixteen (16) part-time jobs made available by one Employer where all
such put -time jobs added together require a total of 352 hours of work per week (but no such
part-time job requires 3 2 hours of work or more per week). will equal eleven (11) Full-time
Equivalent Jobs (352 hours divided by 32 hours per week equal 11). FWl-time Equivalent Jobs
do not require the employee to receive benefits ftorn the Employer.
i) "Manufacturing Facility" me= buildings and structures, including fixed machinery
which is -,r will be the manufliewre of -z --ods or materil
or the processing of such goods or materials by physical or chemical change. Facilities
primarily engapd in assembling component parts of manufacured products are also oonsidem
j) 'Modernization" means the replacement and upgrading of existing facilities which
incroases the productive input or 7 1':updates� or substantially lowers
unit cost of operation. Modernization may result ftn the construction. alteration or
instaliationof buildings, rkmaeftery orequipment, 1 :ll notbefor the
purpose of reconditioning, rdiwbishing, rVairingi or da*nW maintenance.
XI`,.rBasic Industry"buildingsand structures, # fixedmachinery ana'
equipment, not e],sewhere described, use4 or to be used for the produotion of products or
sery ices which result in the creation of new Jobs and bring new wealth into the City.
1) ,personal property" me=s mwhinery, equipment, tools, shelving or materials eligib
under applicable law for tax abetment whi1 can be removed from a ( A
hicility
describedSection rV below.
"Property" Propertyor PersonalPTopeatydefinedherein, as is applicable
together!,ccording to the cDntw where used herein, that is eligible for tax abatement
n) "Real Property" means the land within an Enterprise Zone or a Reinvestment Zone,
1 +P• and fixtures or otherwise situated thereon.
o) "Regional Distribution Facility" means buildings and structim including fixed
machinery and equipment, used or io be used primarily to receive, store, service. or distribute
goods or mataWs where a majority of the goods or services am distributed to points at least 100
miles from its location
p) -Regional Tourist EntertairimeW Facility" mom buildings and struchm including
fixedryischinoy and equipment used or to be used in providing amusement/entertainment
througli ft admission o1majorityof + 1 least 100 miles
1 AT
071nmi rT45#7TIffZ;7IT77TTI1 :+A 1. f . 1A ; 1
A"ReinvestmentZone"or Countydecided
A ► ►: ■ 1 1 : 1 1 1 f A +► 1 1►
area through the use of tax abatement fbr specified improvements.
Countys) "rax, Abatement Committee" mans ihe conimittee, of persons designated from timt
tbaternent to the applicable axing entities in the community. ne Tax, Abatement Committee
will be composed of one person ficm each of the City (the City Manager or designee), the
of Lwnu
County Judgedesignee), CollegePresident
l 1
designee), the Chief Appraiser ofthe, Lamar County Appraisal Distrim and the Executive
Director of the Paris Economic Development Corporation.
U), Designation of a Reinvestment Zone.
The or Countydesignate an a= as a ReinvestmentZone in accordance
the criteda and procedural requirementsProperty, t 1
Abatementamended rs 1 Code 1'' ►
The City, tivough its Council, may agree in writing with the owner and/or lessee of
texcable Real Property that is located in a Reinveshnent. Zone, but that is not in an improvement
project financed 1tax increment bonds, 1 exempt taxation # f •: of the valueofthe
Real Property, or of Personal Property lontad on the Real Property, or both. The period of the
abatement granted under the agreamw shal I not wmead the term authorized by law. Such
agreementbe based on the 7 1 • owneror of
specific improvements or repairs to the Property. An agreement may provide fbr the exemptior.
ofthe Real Property in each year covered by the agreement only to the extent its value for the
year exceeds the Ban Year Value. An agreement may provide for the exemption of Personal
Property located on the Real Property in each year covered by the agreement other than Persons
Property located ♦ Property 1timebefore periodcovered by the
agreement Inventory or supplies cannot be abated as Personal Property.
Tax abatement may only be granted for additional value of eligible Property
the Property owner 15'lessee subjectosuch limitationthe mayrequire. Theadditional
value must exceed any reduction in the fair market value of other property of the owner akeady
1 the tax rolef M 1/ ofthe City.Changeappraisedvaluedoesnot qualify•
added to the tax rolls must come from actual capital expendkares.
The negotiation of tax abatement con"m will be conducted by the Paris Economic
Development Corporation, in conjunction with the City Manager or designee to the Tax
Abatement Committee. In determining where and how Ux abatement will be utilized, the Tax
Abatement Committee wfll examine the potential return on the public's investMWA. Return. on
public investmentmeasured interm1 Jobs created, Jobs 1 rf cases *.:. 1
existing Einployers within the City, and (W) broadening of the tax base, and expansion of the
economic base.
A property owner and/or lessee shall be eligible for tax abatement only upon the
following terms and conditions; I
a) If the Property involved is an Authorized Facility.
b) if the Property involved is a Historic Property. In the City Historic Districts them are
Iluineiziet 1 AnmAlzfExtetirr1 :1 1 /, 1e xi=xc
districts we allowed at 100% for seven (7) yaw with a minimum investment of $5,000 fbr
residential property and $10,000 for commercial property. New residential constuction requires
minimm investrnent1 $100,000 to be 1. e1 for 7 04% exemptio
three=nmercial construction requires a minimum investment of $200,000, for a 100% tax exemption
for
limitationse) Ifthere will be the creation of new value. Abatanents may only be granted for
Witional value of eligible Real and Personal Pro;mrty improvement.% subject to such
..Propertyabaleinentbe 1` only to the
extimt that1`valuefDr each year1the agreement exceeds 1,valuefor the year in which the
agreement1
d) If there will be new Authorized Facilities created, or if existing Authorized
Facilities will be improved for purposes of modernizadon, or expansion.
e) Eligible Property. Abatement may be maended to the value of buildings, structures.
fixed machinny and equipment site improvements, tangible pasonal property, and that office
space and relawd fixed improvernerts necessary to the operation and uhninistration of the
Authorized Facility; provided. however, that inventory or supplies shall not be eligible for
abatement. 11gible property for which abatement may be granted incliudes nonresidential Yen]
0 Leased AuthorizedFacilities. If a leased AuthorizedFaailfty is grarrtedabatem.N
ihe agymnent may be, executed with the lessor and/or lessee, depending upon the pwficular
circumstances of the proposed project. If the agreement is with die lessor, lessor shall
temon,strate binding contracts with ft lessee to guarantee compliance with the terms Of the
g) Value and Term of Abatement. The City will decide whether to grant tax abattsrrient
to an appBoaM and the amount, if any, of such abatement on a case4oe-case basis and in
accordancewith tese Criteria and Guidelines. ne term ofabatement grantedunder
agreement may not exceed that permitted by applicable state law, The amount of the
sl,1 1 1 :! TItT a1 '.1 1 tm I 11' • 1 r i! 1♦ & Tf Ae eligHe • RfZ.
within1 -♦ Facility. Abatementonly be granted ♦r. ft additional1
eligible property 1 °. pursuanttoand listedin the agreementbetween
and property owner and/or lessee subject to such limitations as the City may requim If a
modernization project includes the replacement of improvements within an Authorized Facfflty�
AUWOVM�'AMUM; 21 need
unit(s). The criteria that will be used in evaluating a particular application fbr abatement will
incLude,but not be I to:
i) The dollar amount of the increase in the tax roll for the proposed project;
2) The numberof Jobsor E• by Employer involved;
3) Tbe possible effect the proposed project Nvill have on attracting other MI
improvements i►
4) The nature of the proposed project and its overall effect on the City;
5) Ibe proposed ! ojeefs effect on the safety, haddi, andmoralsofthe City's
residents;
► i Whethertheproposed p 1 ill have ► .1 1 long-term adverse
on the provision of City services or its tax base,
7) Whether the project meets all relmnt zoning requirements,'
8) Whether the project is consistent with the comprehensive plan ofthe City or
County of
planned9) The types and cost of public improvements end services (water and sewer main
adensions, meets and rmds, m.) required of the City and the types and values of
pub] ic improvements to be fUrn ished by the applicant.
h) Economic Qualification. In order to be eligible to receive tax abatement, the
improvements:
1) Must be reasonably expected to increase the appraised value of the Property,
2) Must be expected to prevent the loss of employment Or the retention Or
creation of Jobs duringof
3) Should not be expected to solely or primarily have the effeet of merely
bwaferring existing employment from one part of the City to another
without demonstration of increased Um inves=ent (Dollars or Jobs) or
Unusual circumstances where, i move ! . }
e re Iv,d
4) Must be necessary because capacity oannot be provided efficiently utilizing
existing improved Property w1hen reasonable allowance is made necessary
improvements or governmental acti
3mTiai0RhVLIFw.hXw the term of the -agreement, taxes sbal I be able as follows -
Base Year 4 eligible} E F determined ..: year bythe Lamar
taxableCounty Appraisal District shall be fully taxable; and
2) Tbeadilitional value of eligible property above the Base Yew Value shall be
1; described in the agreement.
( I n rf ! «1 1 -71 ► ,.. { I 1 • - ►"i 1 (, ► 4 : li ',1
tha assessor with such i• ►! be necmaryto determbm the amount
abatement. Once such value has been established, the Chief Appraiser shaV notify the dfboftd
jurisdictions which levy taxes on such Property and the Paris Economic Development
Corporation.
The Employer, owner or lessee of eligible Property requesting tax abatement within a
Reirivestinvit Zone shall, prior to the commencement of eligible property improva=ts, agree
to aqwnd a desipated sum of money and to create or retain a caWn number offobs, or annual
payrollas furtherdefined below.
Tax abatement may be made available W Employers creating Jobs with respect to an
5711; Mil I }
a) To be eligible for any tax Wxftment them mug be a minimum capital investment in
Authorized Facility of $250,000[ at least tan1) new Jobs added to the Employeeslabor
force.
b) When an abatementpmeritage hasbeen Jreed upon it shallbe gmniedfor years
one (1) through three (3); thereaftm there will be a 20% nduction in the original amount abal
beginning with yar four (4) and a similar mduction of 20% in each of the nw three years und
00'. of the Real Property► !►'! to thetax rolls.
c) Critaft for qualification for tax aMtement am as follows: I
d) Any project with a capital investmerd of mom than tan million dollars($] 0,000,000),
I
q) If a newly created business is located or wig locate within an Enterprise Zone, an
additional 10 to 20% Abateisir nt may be available as individually negotiated, with total
abatement not to exceed 100%.
NX r7w TT MITTTUM M=T, - I, - , - I
The City recognizes a significant difference in the valuation of real property and
Drow Because of dwreciation "" *& ".(:rrt
A
lfj-67�7707773 fUT-07-37MMIMMIM L7j�,-7M7xj-I pr3,Mnjr7SFVTvM5
property is significantly diffmwt If personal property should become obsolete and be replaced
while under an abatement agreemM the replacement personal property is not eligible for
aYatement.
a) To be eligible for any tax abawinent on Personal Property, there must be a minimum
i n v e-Vom -a 1 M111
b) When an abatement percentage has been agreed upon it shall be granted for years
6 `�'A - - mal
Alaar Tim
'IC;'�k) Ming- 4TIV % 74 -tj (--,Jrn I IM F -L -,Al LIrOC :t U d LR I
u
100% of the Real Property valuation is added to the tax rolls.
:91MU47't MW#71771ff F - i o i - I ; 4 0
d) Any project with a capital investnent in personal property of mom than ftee million
dollars ($3,000,0001 accompanied by a newly creaftd minimum annual payroll of two and one-
half million dollars (S7,500,000), or creating more than two hundred twenty-five (225) new Jobs
will be individually negotiated. No abatement will be granted for more Ow specified in state
law.
R111 115, 1M
aMOOTITO
171
- MOMIRMfl
HAIgsW77 fjj*js'TMTM
MM
F.Wil'Tir"I)S11M M
d) Any project with a capital investnent in personal property of mom than ftee million
dollars ($3,000,0001 accompanied by a newly creaftd minimum annual payroll of two and one-
half million dollars (S7,500,000), or creating more than two hundred twenty-five (225) new Jobs
will be individually negotiated. No abatement will be granted for more Ow specified in state
law.
e) If a newly created business located or
will locateEnterprise Zone,
additional 10 to 20% 6atement may be available as indMdually negotiated, with total
abatement not. exceed 11..,:
k ,1-77.r1 i%1 7 ' ! i 1' 1 1 ;=Dj I r
recognizesThe City ofits exisfmg Employm• of
community and desires to encourage Wsfing Employers to remain in the City and to impmve
their businesses and industries, profitability. • !
existing Employer (as opposed to a newly created business or industry moving into the City),
owns or ]cases an Authorized Facility and has plans to improve such Property by cmtructing
Faeffity which qua]* for tsx abatement under these Criteria and OWdelines, such Employer
Newly Created Minimum Annual Payroll we creftd. In these cases involving existing
Employers, the criteria for tax abatement for improvements to Real Property at Authorized
Fwiliticsidentical Rthat setforthR► (except1newJobs or Newly
Created Minimum Annual Payroll are required); and the criteria for tax abatement fcxr now
•Prop"added toAuthorizedFacilitiesweIdentical#that setforth
above (except that no now Jobs or Newly Created. Minimum Annual Payroll at required). In
this 1 however,V 4 existing Employerstoretain many Jobs 1 as
much existing Annual Payroll as is economically feasible for the existing Employer to do and
remain competitive industry.
VIII. Application.
a) FAigibility. Any present or potential owner of taxable property in the City may
rl !1 ■ f r( w R ♦ Director1 1Paris Economic Development Corporation.
copy of the said application to be forwarded by the applicant to the Executive
b) Form. Ile application shall consist of a compleW application form accompanied by
the following
1) A general description of1he improvements to beundertaken together with the I
2) A detailed descriptive list of the briprovements for which abateraw
requested;
3) A list of the kind,number,and location •'.all proposed improvementsof
Property;
A ►.l 1'. M ►' ►1 Y♦ I ► 1 };Y
5) A metes and bounds description and plat of the proposed Reinvestment Zone that
• • . •. ' 211 if t
rand uses within 200 fbet of the Reinvestmew Zone,
f) A time schedule for undauking and completing the proposed
improvements,
7) The type andvalueofany economicdevelopment requested;
8) Any other information about the proposed project as maybe required by tbo City or
as 4 rml e■ desirable byc) Review. 0= the application has been received� the infonTuWon submitted will be
the City.
by the TaxAbatement Committaefor completenessIi
and comment. In addition, no tax abatement application "I be considered fbr further
processing by the governmental entities unless first approved by the governing board of the
Paris Economic Development i • A1r. • ~;
d) Public Hearing. The City will comply with cartain public notices and hearings
required { ,• A M I Rstate law mss die Property
! ■ Redevelopment and Abatement
a) Findings. In order to enter into an agmmen; the City must find that the terms of the
proposed agreement oomply with these Guidelines and Criteria, that there will be no
we fbasible and priactical and would be a beneflt to the land to be incAuded in the Reinvestment
Zone and to the City after the expiration of the agreement.
0 Variances. Requests for variance from the provisions of these Guidelines maybe
made in writing to the City-, provided, howeva, that in no event shall the term of any
complete dewiption of the circumstances requiring a variance. Approval of a Mquest for
variance shall require the affirmative vote of three-fourths (3/4) of the marribers of the City
execution ot'an agreement wItn the owner an-kor lessee OT tile Authorized Facility Whi MSZ
include, but not be limited to the following terms:
a) The Base Year Value,
b) Percent of increased value to be abated each year;
c) The commencement date and the termination date of abatement;
d) Amount of investment and average number ofjobs involved duTing the term of the
a) The proposed use of the Authorized Facility, nature of construction, time schedulej
plat, property description. and improvement lis% as provided in ft application,
S) A staternent limiting the uses of the property consistent with the general purpose of
that property abatement
h) lbat access to the project is provided to allow for the inspeWon by City inspectors
and officials in order to ensure &at the improvements or repairs am made according to
the specifications andconditions1the agreement;
1� Mw property tax revenue lost as a result of the tax abaternent agreement w0l be
recapurred by the City if 1 owner a f;thePro" to mab the improvementsor
:,7afts as provided by the agreement;
1 f 1 1 1� • 1 • 1
1 f " t t =+ !
the owner is in compliance with cad applicable term Of the apternant;
Contractualobligations eY"' of dabult. vioManof 4.1 1 `. or conditions.
delinquent taxes, rwaptum administradoi and a.,Wgmnen% or other provisions that
may be .i! [ 1state law,or in thediscretion the City Council;
m) JUt the City may cancel or
modify !agreementProperty f Y
complythe agreement.
If the City determines that theperson or entity receiving on abatementdefault
according 1the termsand condI t of its agreement,notifythe company4
individual in writino at theaddress e, the : %it aik 1 if m6,1 ': . w 4
all 'C 11
or termhuded without finther notice. In the event the company or individual allows its ad
• 4 MI Aity r►. 4 1 1 + Y, -, rt l ri U. 1 4 1 1 1 �► r 1 4 ! T
'.f: f ! r , 1 , 4± .1,Y :1 U ! • 1 4 4 4
agreement and fails to cure during the Cum Period, the agreement then may be modi d or
fie
terminated • notice,
and
the �a 1 provide s r 1 of
or pan of the taxes absted. At any time before the expiration, any tax abatement agreement may
be *minated by mutual consent of all parties involved in the same manrier that the agreement
was executed.
,: ConfidwtislityIProprietary1 11 A f..
Inforrnation that is provided to a taxing unit in connection with an application or request foir
f:► abatement underr describes processes or business
activities to be cmducted or the equipment or other property to be located an the Property for
which tax abatement is sought is confidential and not subject to public disclosure until the
agreement is executed. Such information in the custody of the City after the agreement is
examted is not confidential under these Guidelines.
XIL ProposedTaxAbatementAgreements 3' be decided l lanIndividual
The adoption of these Guidelines by the City does not limit the discretion offt City
of the City Council to delegm to its employees the Whority to determine whether or not the
Y 1 1 •I !� 1 1 i 1 1• r �r "{ r %- 1/ �'; Y'. r f
contract, or other leo right in any person or entity to have the City Council consider or grant a
specif
led application or request for tax abatement.
iM Inspections.
accessThe agreement shall stipulate that employees and/ or designated representatives ofthe City
will have to the Reinvestment Zoneduring the term of the agreement ► inspect
AuthorizedFacility to determine of the agreement"beingmet. All
inspections be made only after the givingItwenty-fourhours'prior notice
andwill only be conductedin such= manneras ► not r- + Nly 1
construction and/or operation ofthe Authorized Facility. AJI inspections will be made with one
Upon of construction,annuallyll eacb Authorized
Facility receiving abatement4ensum complianceagreement +'reportpossible
RESOLMON NO. 2JU-9Q3
Kill 01MOC" MAO oil) D144 14 CRTAMM
WHEREAS, Section 312.002 of the Texas Tax Code requires local taxing units to mate 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 wen
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 and incorporated herein by reference,
hereinaftex referred to as "Agreement"; and
WHEREAS, the City Council of the City of Paris, 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 dwee-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
?pproved.
Section 2. The City hereby elects to be eble to participate in a tax abatement program and
approves and adopts the amended Guidelines and Criteria for Tax Abatement attached hereto and
incorporated herein as Exhibit "'A".
. .. ........ 111111 111''1111
FR!ice Ellis, CLity Clerk
111 11111111111111111111 111 illillilillilifilli FPIJI 11111111111111111 11�1;1�pii�111111 1111111111
MUM 9,711M
(Updated R
POLICY
j
• .!. 1: I I' f f" : Y++' I! : A S 1 1 f 11} i x 1
!r
authorized facility located anywhere wit1 li the area served by the Taxing Jurisdictions based on the following
To be eligibLa for any taxt, there must be minimum w, investment n authorized r, y of $ 1,000,000 611.w�
at least an ! newjobs added to 11' new" employees lf f
2. Any I a capitalinvestmentof more ISI r': million +if 000001 M accompanied by
newly createdminimum ::fl" ; payroll of fand one-half million dollars I0044i 4" creating more than two
hundred I jobs will be of n negotiated.
specified in state law, If abatement be granted for more#' years and the totalabatement
#1
newly business mustbe (or willbe) locatedwithinan enterprise1 designated reinvestment
jurisdictions5. Tlic taxing felsignificant difkrence in the valuation Mrealproperty personaproperty,
Bec
t.',-
a'` + depreciationI abatement of personal M F f' 1' fresult1 i tax exemption. For this reason, } "'
abatement sc! ;r" 1 personal property - property may be diftbrent. Each industrial f It is looked at and
d on an individual basis by die Iamar Countyrw:iW; District Ai). The typicaldepreciation tilt 'ed for
industrial accounts by i is as
a. Computers
Vehicles—b. Furniture&Fbftres— loyear life
c. to 10 year life (depending ontype)
d. Machinery & Equipment — 15 year life (maybe longer or shorter depending on the type)
iA or each abatement reqI Abatement Committee A' equipment(personal f kMinvestment%11
useful life separatefromthe real estatefif" investment to d1'the length1theabatementfor each.
personal property should become obsoleteY bereplacedwhile underIabatementagreementthereplacement
personal property is not ig A forabatement.
achartsbelowprovidecapital guidelines yr qualifyfor taxabatement and i 7related schedule and
percentage of abatement.
0I1 ' #'. 1 11 N :+. 111a'
r
1114
$25,000 ,001 and Above
Forprojec& with atpilat investment above WMAND ON
creating more awn 225 newJobs, dw &= andpervenrage ofther abatement are bed
n4p*ft but 5qnnof exceed 101"M or 10091
An additional #' abatement f newjob creation is available based on the following requirements:
project ti. f #+ new wb
f. Tim 1' fw wages aree S to4 greater than theCounty • - wage, br a private1 Mi" excluding
retailtrade 1 accommodation and f 1 fi fannuallyor 2013. Source:Workforce! p! f fil:
(Updated 1-11-16)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
via www.tracer2.com. (Note: This represents 54 7 companies, 10,470jobs and 56% of allprivate sector employme
in Lamar County.)
The taxing jurisdictions and the company must agree to include measuring, tracldng and annual reporting of the ne,
jMM increases (existing jobs plus newjobs) for the entire term of the abatement agreement.
For Net New Jobs (New Job Creation and
-- ----- ------------
Retention of Existing Jobs)
1. 10 new jobs rnu- iii -uiii, .
2. Newjob wages = or > average annual
wages forprivate sectorjobs in Lamar
County. (Excluding retail, acomnioMons, food
service. See Rem 9.b. above.)
3. Agree to maintain existing base and new
jobs dunng the entire term of agreement.
4. *Year I cannot exceed 100%.
V1. Tax Abatement for Existing Employers Regarding Real or Personal Property.
The Taxing Jurisdictions woognize 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
profitability.
NOW L' Oil
�roperly by constructing new improvements on its real property and/or adding new pemonal
Itiroperty to its authorized facty which qualify for tax abatement under these Policies, Critcriz
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 new jobs or newly created minimum annual payroll are created.
(Updated 1-11-16)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
mandated by state law under the Property Redevelopment and Tax Abatement Act prior to the
i designation of a reinvestment zone and execution of a tax abatement agreement.
The lead Taxing Jurisdiction (typically the City of Paris) may adopt an ordinance designating a
F:.... abatement reinvestment zone only after notice of a public hewn has been published at
least seven (7) days befive the date of the hearing, and all other procedural requirements of
Chapter 312 of the Texas Tax Code have been satisfied.
T.I114 rder to enter into an agreement, the Taxing Jurisdictions must find that:
I . The tearis of the proposed agreement comply with these Policies, Criteria and
Guidelines.
2. There will be no substantial adverse effrct on the provision of Taxing Jurisdictions' services
or tax base.
3. That the planned use of the property will not coristitute a I: i11. to public safety, health or
morals.
4. Incident to approval of any ordinance dengriating a reinvestment zone, the Taxing
Jurisdictions shall find that the improvements sought are feasible and practical and would be a
benefit W the land to be included f- reinvestment zone and to the Taxing Jurisdictions
after the "x iration of the gveement
Requests for variance from the provisions of these Policies, Criteria and Guidelines may be made
in writing to the Taxing Jurisdons; provided, however, that in no event shall the terzn of any
abatement exceed the period audaued by applicable state law. Such request &hall include a
complete description of the circumstances requiring a varia=. Approval of a request fDr variance
shall require the afflumative vote of thrm-fourths (3/4) of the members of each of the Taxing
Jurisdictions' governing body�
I 1 A
person or entity to have the Twang Jurisdiction consider or grant a speced application or request
for tax abatement.
VIII. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terms and conditions to be included in any foffnal tax
abatement legal agreement.
DL 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 affinmative vote of fluee-fourths (3/4) of the
membm of each governing body (City, County, PJC).
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Economic Development Corporation
1125 Bonham Street
Paris, Texas T�&, 60
Pbo w 903-7844W
Fax: 903-784-2503
Website: ww aristexasusa.com
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(Updated 1-11-16)
POLICY STATEMENT
'CRITERIA AND GUIDELINES FOR TAX ABATEMENT
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The replacement and upgrading of existing facilities, vv-Wch increases the productive input or
output, updates the fthnology, or substantially lowers the unit cost of operation.
Modernization may result from the construction, alteration or installation of builidings,
structures, fixed machinery or equipment, but shall not be for the purpose of reconditioning,
refurbishing, Mmiring, or deferred maintenance. — ---------------
Machinery, equipment, tools, shelving or materials eligible under applicable i" tax
which can be removed fiorn an authorized facil
The land within an Enterprise Zone or a Reinvestimt Zone, together with all improvements
and fixtures or otherwise situated thereon.
-constructed
Th Tax Abatement Advisory Committee will be convened from time to time by the Paris
Economic Development Corporation to study, review and recommend tax 8batementS to the
applicable Taxing Jurisdictions in the City of Paris and Lamar County, Tem. The Tax
Abatement Advisory Committee will be composed of one person 1111.e of the Taxing
Jurisdictions: the City of Pads (the City MaWer or designee), the County of Lamar (the
County Judge or designee), Paris Junior College (the President or designee), the Chief
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Appraism of the Lamar County Appraisal District, and the Exemitive Director of the P'
Economic Development Corporation. Reconmendations from the AAdvw'fy
Committee shall be decided by majority vote of die representatives fm flie three taxing
entities referenced above.
(Updated 1-11-16)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
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I? abatement to ensure compliance with the agreement and report posm
violations of &e vwqe11 `1 to the Taxing bodies.
rmtj"tton must be made by ffie same procedure
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may not be milared to extew Rue tam or'lle-awmilmum JLC CI OIL
therein be,39nd the time by State law. — -----------------
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tax abatement agreements auffiorized by them Taxing Jurisdictions under these Policies,
criteria and Guidelines. Them responsibilities shall include annually ven4w Participants in
tax abatement agreements are in full compliance with the terms of the agreement, includling
completion and submissionof all required documents in a timely manner.
2. The Paris City Attorney "I expeditiously advise the Taxing Jurisdictions in writing of any
instances of contract non-compliance by tax abatement participants. In addition, the Paris City
Attorney shall, on an annual basis, conduct & perfimnance review of the activities of each tax
abatement participant and report the findings of such review to the leadership and governing
bodies of each taxing entity.
3. The Taxing Jurisdictions' governing bodies shall retain the right to WdependentlY review and
au&t tbe activities of tax abatement participants, and shall be responsible for enforcement of
the terms of any tax abatmnent agreement authorized hereunder.
Aimually the Paris City Attorney sWl report to each of the governing bodies on its
ring and com iiance activities and the status of allodmin
oruto _P abatementAVOCTMUL -----
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