13 - Economic Incentive Package-Project Orange FireItem No. 13
TO: City Council
John Godwin, City Manager
FROM: Michael Paris, PEDC Executive Director
SUBJECT: PROJECT ORANGE FIRE
DATE: December 11, 20 17
BACKGROUND: The Paris EDC Board met on December 1, 2017, and approved an economic
incentive package related to Project Orange Fire.
STATUS OF ISSUE: Discuss and act on a resolution approving an econornic incentive package
related to Project Orange Fire, a project under the North American Industry Classification
System (NAICS) 332996 Fabricated Pipe and Pipe Fitting Manufacturing, said package to
include economic incentives previously approved by the Paris Economic Development
Corporation in the approximate arnount of $1,283,000.00, including land and forgivable loans,
and a tax abatement by the City of Paris.
BUDGET: Expense of $1,283,000,00 from PEDC funds,
RECOMMENDATION: Motion to act on a resolution approving the economic incentive
package for Project Orange Fire.
MR. I'
RESOLUTION
RESOLUTIONPARIS,
DEVELOPMENTAPPROVING AN ECONOMIC INCENTIVE PACKAGE FROM THE PARLON
ECONOMIC CORPORATION ` O
AUTHORIZING AND DIRECTING» PREPARE
»rr ,
TAX ABATEMENT AGREEMENT' BETWEEN THE CITY AND
AUTHORIZING
» i.. DIRECTOR
DEVELOPMENT OF COMMUNITY
N CERTIFYAPPLICATION AN
TO THE TEXAS ENTERPRISE FUND; MAKING OTHER FINDINGS AND
PROVISIONS RELATED M D DECLARING
EFFECTIVE DATE.
WHEREAS, pursuant to the bylaws of the PEDC, the City Council shall review and
approve all economic incentive projects involving an expenditure in excess of $400,008O0.0i1
and
WHEREAS,
business of
a company engaged in the
seeks to invest $6Q,0P0,i 07 0.0'O to build and operate a
plant which will employ 100 people; and
WHEREAS, Paris, Texas is one of the top two finalists as a location. for the
above -referenced investment; and
"WHEREAS, the Paris Economic Development Corporation ("PEDC") and the City of
Paris desire to induce to locate said plant operation in Paris,
Texas because of the positive economic impact and job base that the p'roje'ct will bring to
the area; and
WHEREAS, in a special meeting on. December 1, 2017, the PEDC voted to send to
City Council for approval an offer of an economic incentive package to
in the approximate amount of $1,283,0'00 .00 as an incentive for
American Spiral Weld to locate their proposed plant in Paris, Texas; and
WHEREAS, in addition to the economic incentives offered by the PEDC, the City
Council wishes to offer the further inducement of a tax abatement on improvements on real
property, and
WHEREAS, the City Council also desires to support "s
application to the Office of the Governor for a grant from the Texas Enterprise Fund; and
WHEREAS, the City Council hereby finds that it is in the best interest of the City to
approve the PEDC's offer to of an economic incentive
package as set forth in Exhibit A hereto; to approve a tax abatement as set forth herein;
and to support the company's application to the Texas Enterprise Fund;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1., That the findings set out in the preamble of this resolution are hereby
in all things approved..
Section 2. That the economic incentive package approved on December 1, 2017
by the Paris Economic Development Corporation to I'll, the components
of which are set forth in ExhibitA attached hereto and incorporated herein by reference,
is hereby ratified and approved.
Section 3. That in the event that -hooses to locate its new
plant in Paris, Texas, the City Council hereby directs and authorizes the City Attorney to
prepare a tax abatement agreement related to a probable investment of $60,000,000.00
with an associated 100 jobs for an abatement of property taxes on improvements made at
the rate of 100% for a period of 10 years.
Section 4. That the City Council hereby authorizes the director of community
development to certify )s application for a grant from the Texas
Enterprise Fund and to provide other, aid in support of said application as may be
necessary.
PASSED AND ADOPTED this 11th day of December, 2017.
Steven J. Clifford, M.D. Mayor
ATTEST:
Janice Ellis, City Clerk
,Stephanie H. Harris, City Attorney
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