2017-041 - Approving an Economic Incentive Package from PEDC to American Spiralweld Pip Company LLCA RES01LUTION OF THE CITY COUNCIL OFTHE CITY OF PARIS, TEXAS,
APPROVING AN ECONOMIC INCENTIVE PACKAGE FROM THE PARIS
ECONOMIC DEVELOPMENT CORPORATION TO AMERICAN SPIRALW�ELD
PIPE COMPANY, LLQ AUTHORIZING AND DIRECTING
BETWEENATTORNEY TO PREPARE A TAX ABATEMENT AGREEMENT
THE CITY AND D+ y rK SPIRALWELD
• •i COMPANY,
AUTHORIZING s • COMMUNITY DEVELOPMENT
,I• l
CERTIFY AN APPLICATION BY AMERICAN SPIRALWEILD PIPE COMPANY,
LLC TO THE TEXAS ENTERPRISE FUND; MAKING OTHER FINDINGS AND
1PIROVISIONS
RELATED
yI\. T i. SUBJECT,: AND DECLARING
.R L.
r3FFECTIVE 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 $400,000.00;
and
WHEREAS, AMERICAN SpiralWeld Pipe Company„ LLC ("the Company") a South
Carolina limited liability company engaged in the business of fabricated pipe and pipe
fitting; manufacturing; (l'~,1AICS 332996) seeks to invest $60,000,000.00 to build and operate
a manufacturing; plant which will employ 1.00 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 the Company to locate said plant operation in Paris, Texas because of
the positive economic impact and job base that the project will brings 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 the Company in the
approximate amount of $1.,283,000.00 as an incentive for the Company 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 the Company'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, the Company 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 app'ro'ved.
Section 2. That the economic incentive package approved on December 1, 2017
by the Paris Economic Development Corporation to AMERICAN SpiralWeld Pipe Company,
LLC, the components of which are set forth in Exhibit A, attached hereto and incorporated
herein by reference, is hereby ratified and approved.
Section 3. That in the event that AMERICAN Spira]Weld Pipe Company, LLC
chooses 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 and any other
necessary documents related thereto.
Section 4. That the City Council hereby authorizes the director of community
development to certify AMERICAN SpiralWeld Pipe Company, LLC'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 1.1th day of December', 2017.
.0
S'tm. even4i,,�iiffo�t-d,m.61,"Mayor
ATTEST:
�nice Ellis, City Clerk
,CPV AS 0 FORM:
Sf"fi&nie I -I. flarris, City Attorney
PROJECT COST SUMMARY WORKSHEET
Project Orange Fire
A) 101.67acres
B) $20M Building
Q $400 Machinery & F�quipment
D) ST200 InventoryAnnually
h) mo Empboyces
PRO,.) ECTCATEGORI FIS
PROJECTCOSTS
BUDGET
PURCHASE LAND AND BkJILI)#N(.,S
$210,000
PEDC
A(�(IuWtjon – T,and & Building (Old Suim-ioT- Switch bldl)
(Lanun- Count.y Aj)l)nikfl NstHut lf) .. 18943� 191 4 nelvs)
SITE WORK
8,-,00,000
Jkinolhi)n and rvnioval (jfbufldn)�is and debrly
(building, two slabs and shed)
- - -- --- ------
RIA 1ABILITATION / CoNs'rRUC" HON
SO
('onsti-uc6on ContingencY
Fees and lletnnts
$53,000
OTHI-%R DFIPRECIABLE
PROFFSSIONA1, F1',FS
( HF) Flngincci,ing, F�h-in (suggested by Twospect)
NeiPhase i 1^�n)Ironnwntal on afl suggestvd
14r"qoo
Pf"DC
Bruin INIT"WITIVW01and Study
$1,200
PFDC
Real Istate Attomc,y ("Plug" 0eln, M0(a1v Law)
$2,000
PEDC
AI)Inaisal, Market Study, f`nv kej)ol't, Consulting, 0,)sl Cc'!ificatknl, etc
7—slo,000
Offier 0)fflingency (I'liase It and Wetkoids fn,(ogress)
i
PEDC
DEVELOPER'S FEf,1S
PEDC' Incentives
PEDC,
F(nrgivablc Loan (oi,,Jrabs (Off -set 1Cafl costs $jro,(aoo)
$500,000
F'oi-gavabk., Loan lor, Land (mi ,j, a(ivs - L'SL Value $2 F,4NI)
SO—
PROJEC`FCOSTS RESPONSIBILITV
Paris FDC (pending City Council approval)
$t,282,10<)
PEl C
City of Paris (pending possible approval)
(FIStinute over m 4 aaa-S)
$3,011,700
City of' Paris
Lamar County (pending possible approval)
Mstimate Over Io vears)
$2,365,800
Lamar County
8 3-0 0 1-1
Al,
Version: ApHl 200()
I* 11FIX, ria.v�a fear land liuuliasc and dcinolliffi)n as the wal oudaY