19 - Resolution Approving an Additional 40 Acres for American Spiral Weld (2)Item No. 19
TO: City Council
John Godwin, City Manager
FROM: Michael Paris, PEDC Executive Director
SUBJECT: RESOLUTION FOR CITY COUNCIL TO APPROVE AN ADDITIONAL 40
ACRES
DATE: January 8, 2018
BACKGROUND: PEDC Board approved an additional 40 acres of land for American
SpiralWeld at the December 19, 2017, inecting.
The additional properties are:
LOAD ID
124273
8.46 acres (owned by PEDC)
L,CAD 1D
18627
7.57 acres (owned by City of Paris)
[,CAD ID
18623
15.57 acres (owned by MDC)
LOAD ID
115909
11.44 acres (owned by PEDC)
STATUS OF ISSUE': 'The PEDC Board approved the additional 40 acres for
American SpiralWeld; The PEDC Board is requesting that the City Council approve
the additional 40 acres by resolution.
BUDGET: N/A
RECOMMENDATION: Motion to approve the resolution for City Council to approve an
additional 40 acres added to American Spiral Weld.
Draft
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING A REVISION TO AN OFFER BY THE PARIS ECONOMIC
DEVELOPMENT CORPORATION TO AMERICAN SPIRALWIRE PIPE
COMPANY, LLC TO PROVIDE THE OFFER OF FORTY (40) ACRES OF LAN
TO BE ADDED TO THE ONE HUNDRED AND ONE (101) ACRES APPROVED
DECEMBER 11, 2017 BY RESOLUTION 2017-041; TO INCLUDE IN THE
OFFER A 9.09 ACRE TRACT OWNED BY THE CITY OF PARIS SUBJECT TO
CERTAIN RESERVATIONS OF RIGHTS AND FINDING A PUBLIC PURPOSE
THEREFOR; MAILING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, pursuant to the bylaws of the Paris Economic Development Corporation
("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 (NAICS 332996), seeks to invest $60"000,000.00 to build and operate
a manufacturing 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
p p (",
WHEREAS, the Paris Economic Development Corporation ,EDC„) 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 jab base that the project will bring to the area; and
WHEREAS, at its regular meeting on December 11, 2017, in Resolution No.
2017-041, a copy of which is attached hereto as Exhibit 1 and incorporated herein by
reference, the City Council approved an economic development package previously
approved by the PEDC Board of Directors to offer the Company as inducement to locate its
new plant operation in Paris, Texas, said package including a forgivable loan on some one
hundred one (101) acres; and
WHEREAS, in a regular meeting on December 19�, 2017, the PEDC approved a
motion by a vote of 5 ayes to 0 nays to offer an additional forty (40) acres in the Industrial
Park to be added to the one hundred and one (101) acres previously offered to the
Company as an incentive for the Company to locate their proposed plant in Paris, Texas,
said additional parcels being identified on Exhibit 1 attached hereto and incorporated.
herein by reference; and
WHEREAS, included within that additional forty (40) acres is a 9.09 acre
commercial tract owned by the City of Paris and commonly referred to as the "Legion
Airport Properties," which tract is vacant save and except for a telecommunications tower;
WHEREAS, the City is authorized under Texas Local Government Code Chapter 380
to establish and administer economic development programs which may provide for
making loans and grants of public money to promote state or local economic development
and to stimulate business and commercial activity in the municipality; and
WHEREAS, the City Council has adopted and readopted such an economic
development program, most recently in its regular meeting on September 25, 2017; and
WHEREAS, the City Council finds that a public purpose will be served in including
said commercial 9.09 acre tract in the incentive package due to the significant positive
economic impact associated with the construction and operation of the Company's new
plant and the associated addition of at least 100 jobs to the local economy and to the return
of said vacant commercial 9.09 acre tract to the tax rolls, and that such a grant is consistent
with the economic development program adopted previously and the authorizing
legislation therefor; and
WHEREAS, notwithstanding the foregoing, any such transfer of the property will be
subject to the City's retention of the rights to all revenues due the City under an amended
lease by and between the City of Paris and Cox Southwest Holdings, L.P and assigned by
Cox Southwest Holdings, L.P. to Cebridge Acquisition Co., LLC and any future leases, of the
telecommunications tower located on said property and will be further subject to the grant
of any easements necessary for the continued operation and maintenance of the
telecommunications tower and facilities referred to herein; 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 additional forty (40) acres as set forth
herein, including the 9.09 acres owned by the City of Paris subject to the reservations of
rights and necessary easements related to the telecommunications tower described herein;
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 PEDC's offer of an additional forty (40) acres in the Industrial
Park as set forth in Exhibit 2 attached hereto be added to the one hundred and one (101)
acres for AMERICAN SpiralWeld Pipe Company, LLC as an incentive for the Company to
locate their proposed plant in Paris, Texas is hereby in all things approved.
Section 3. That the 9.09 acre parcel owned by the City of Paris identified as
Block 305, Lot 6, City of Paris (LCAD Parcel ID No. 18627), which parcel is located within
said additional forty (40) acres, shall be offered to the Company as part of the package and
subject to the terms thereof, subject to the City's retention of the rights to all revenues due
the City under an amended lease by and between the City of Paris, and Cox Southwest
Holdings, LY and assigned by Cox Southwest Holdings, L.P. to Cebridge Acquisition Co.,, LLC
and any future leases of the telecommunications tower located on said property, and
further subject to any easements necessary for the continued operation and maintenance
of the telecommunications tower and facilities referred to herein; that such grant of said
tract is consistent with the City's economic development program adopted pursuant to the
authority granted in Texas Local Government Code Chapter 380; and that there exists a
public purpose for said grant as described more particularly herein,
PASSED AND ADOPTED this 22nd day of January, 2018,
Steven J. Clifford, M.D. Mayor
Janice Ellis, City Clerk
Stephanie H. Harris, City Attorney
°
1 I I r
1
ND,, ».
ww,�„ "'° , II ,wAND .D I'DINGS A
RING AN
713FFECTIVE DATE.
WHEREAS,
tr f
1
WHEREAS,AMERICAN Company, a South
Carolina limited liability company engaged in the business of fabricated pipe and pipe
fitting manufacturing (NAICS 3329961) seeks toinvest $60,000,,000.00 to build and operate
a manufacturing plant y N and
WHEREAS, w two finalists as a location for the
above -referenced ^ R
r1 a, ,.. N !i • , ^
;- IM #� , • . � � / i . i ^ � � * ,M � " . :Ili
WHEREAS, on r voted to send tit,
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 proposedplant
WHEREAS,addition ^ offered M the
PEDC, the City
Ainducementof ,^ tax abatement
1" improvements;r real
property, and
WHEREAS, also desiresiapplication
Officeof the Governor for - grant Texas Enterprise Fund; and
interestWHEREAS, the City Council hereby finds that it is in the best
Exhibit—A
applicationN the Texas Enterprise Fund;
T �n
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COONCIL OF T14E CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble of this resolution arc- hereby
in all things approved.
Section 2. That the econornic, 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 EXE bftt_A
herein by reference, is hereby ratified and approved . , attached heret�o and incorporated
Seefion 3. That in the event t�h�at AMERICAN SpiraiWeld Pipe Company, L
choloses to locate its new plant in Paris, Texas, the Ci�y Council hereby directs an
authorizes the City Attorney to prepare a tax abatement agreement related to a probab
investment of $60,000,000.00 with an associated 100 jobs for an abatement of proper
taxes on irnprovements made at the rate of 100% for a period of 10 years and any oth
necessary documents related thereto. I
Section 4. That the City Council hereby authorizes the director of community
development to certify AMERICAN SpiralWeld Pipe Company, LLC's application fGr 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 I 1.th day of Decernber, 2017..
Steven t,Jifford, M.. Mayor,
An'EST:
�nice Ellis, City Clerk ......
EDAS 7 0 F 11R51.
Std i n i e H, II a rri s, C ty, Atto rn ey
111104JECT,, cos,r SUMMARY WORKSHEET
11'ro'Aject Orange Fire
it) 10107 HOTS
B) S20M HuMing
0 $40M Machinery & EqjuipRient
D) $120M Inventor) Ann"ally
W 100 KmPkwmS
PR(MECTIC'
UR(]HASE 1ANV ANI) BUILDINGS
Acquisk Bu j?d iung (Nd
(Lanum
I
RK
E
(hukhng, two sat*� and sheti)
;7ri—AR11 —ff/k'T"KM1 —/C'—ONSTR"—UCT10N
(,onmruchun Cwiongenc:k ( ........ ...
Fus and MmS
07HER DIETRECIAME
IMOFESM 3NAL FXES
OHD Firm (suggemod by prwWct)
Neu Nswqc o Erwinmrmmlul on p�,cqden�
Fruin INTETHC Mfland SWO
Rc,d WakI Atowney C'Mug"(Ium, Moore
App-aaa�aaL Markcl aaaIAy, Ern ktpom, Conmdrmg, Ccvo Ucxflfica6un, tqc,
WwCnmng"n"IV H Arld %-Cp amdr.
573, 1', 1 7 'S
P ERI FEE
IncentNes
I"Orgju-oblc Loan fw 3Av6,""Iff-Sel Rb1H co"ds sjqwawa l)
KnXimWe Loan W Ond (Myl 11 aon% - JAL Vah1c S214M)
(70.5'rq RESPONSITHI.MV
Paris rSDC(taengiiyilCiLyln.°ouii(.if approval)
City of'Paris (pending prwWb1c upprovat)
LaMar County (pending pastdb!c app"wal)
PEOCTOTAL
14NOW Apt 2M4)
", Na�DcPays (,m, panel puu-bww and dcm(Ai6ou a,I, prhc aII,al ouUay
ff,vinimc rwear In
R'c'U.118 te sum 10
IMNSEMEMBEEMMM
I PEnc
PEDC!
City of Paris
2, E: ILumgArCounky
,T;
P r ix",
FEM'
ICS EDC
I PEnc
PEDC!
City of Paris
2, E: ILumgArCounky
EX1,11BIl"ll 10