2018-003 Approving Revision to an Offer by PEDC to American Spiralweld Pip to provide the offer of forty acres of land adn to include a 9.09 acre tract owned by the City subject to Certain Reservations1 w IN M 1 F a t g r w r
r r x r w w r x
TIVI
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 SpiralWVeld Pipe Company, LLC ("the Company")I, a South
Carolina limited liability company engaged in the business of fabricated pipe and pipe
fitting manufacturing (NAILS 332996), seeps to invest $60,000,0010.00 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
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 bring to the area; and
WHEREAS, at its regular meeting on December 11, 2017, in Resolution Pio.
2017-041., a copy of which is attached hereto as Exhibit 1 and incorporated herein b
reference,
the City
CouncilDirectorsapproved an econornic development package previously
approved by the P DCBoard of to ffer 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 2 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;
and
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 PEDCs 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'
F."ARIS, 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, 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
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 �ith the City's economic development pro grare adopted pursuant to the
authority granted 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.
(-1-Y Stev J:/Clifford, Mayor
ATTEST:
e"" J .......
nice Ellis, City Clerk
7=SFORM:
Steph'anie 11. Harris, City Attorney
A RESOLUTION OF'THE CITY COUNCIL OF THE CITY OF PARIS, TEXA
APPROVING AN ECONOMIC INCENTIVE PACKAGE FROM THE PAR
ECONOMIC DEVELOPMENT CORPORATION TO AMERICAN SPIRALWEL
PIPE COMPANY)AUTHORIZING AND DIRECTING THE CIT
ATTORNEY TO PREPARE A TAX ABATEMENT AGREEMENT BE'TWEE
THE CITY AND AMERICAN SPIRALWELD PIPE COMPANY, LL
AUTHORIZING THE DIRECTOR OF' COMMUNITY DEVELOPMENT T
CERTIFY AN APPLICATION BY AMERICAN SPIRALWELD PIPE COMPAN:
LLC TO THE TEXAS' ENTERPRISE FUND; MAKING OTHER FINDINGS AN
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING Al
EFFECTIVE DATE.
WHEREAS, pursuant to the bylaws, of the PEDC', tile 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 bllSineSS of fabricated I�Ape and pipe
fitting manufacturing (NAICS 332'996) 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
WHEREAS, the Paris Fconon-iic Development Corporation ("PEDC") and the City of
Paris desire to induce the Company to locate said plant operation in pari s, because of
the positive economic impact and job base that the project will bring to the area; and
WHEREAS, in a special nleeting 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 arnount of $1,283,000J)0 as an incentive for the Company Spiral Weld to
locate their proposed plant in Paris, 'Texas; and
WHEREAS, in addition to the econ0lT1iC incentives offered by the PEDC, the City
Council wishes to offer the further inducement of a tax abatement on improvernents on real
property; and
WHEREAS, the City Council also desires to support the Companys application to the
Office of the Governor for a grant from the Texas F n terpri se Fund, and.
WHEREAS, the City Council hereby finds that it is in the best interest of the City to
approve the P'EDC's offer to the Company of an economic incentive package as set forth in
ExhLibit A hereto; to approve a tax abatement as set forth herein; and to SUPPOYt the
company's application to the Texas Enterprise Fund;
-11OW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY (I
PARIS, TEXAS:
Section 1. That the findings set out in the preamble of this resolution are hereby
ill all things approved.
Section 2. That the economic incentive package approved oil Decernber 1, 201.7
by the Paris Economic Development Corporation to AMERICAN SpiralWeld Pipe Company,
LLC, the components of which are set forth in Eabibis 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 wit], an associated 100 jobs for an abatement Of property
taxes oil 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, 20,17,
0
71
Steven lifforfo
-d, M, Mayor
ATTEST:
%
nice Ellis, City Clerk
7P;1"ED AS TO FJr1RM:
-ney
st�-r I nie H. Harris, City Attoi
PROJECTCOST SUMMARY WORKSHEET
Project Orange Fire
A) 101-67 at!rcs
B) $20m Building
(7) S40M Mavhinerro & Fquipinent
D) Sv.!oM Inventory Ammally
100 LlilluoyeeS
PROJECTCATEGORIFS
PROJI"ICTCOSTS
BUIDGET
PURCHASE LAND AND BVILMNGS
S220,000
PLDC
Accliflsition - I,wd & Ridkhm,, (0W.qnpe6or Si6trb blkl,s )
(I.mnar(boot, Appmisaf Distrid 11) - V8943; MALl ,yore of
SITE,WORK
$r'(.)0'D(m
PLDC
DcTrwditbm and rear ov.d of lmflkfinp Sm(t dchn
(lxOkfiIig, ovnJdis mid shed)
REFIABILITAXION/ CONSTR41CTJON
So
0141PA DEPRI,"CLABLU"
PRO FF'SSIONAL FEES
Of: ID hwjn(^(,6ng Fil In (SlIggested b), prospect)
New Illmsc I l'Xi% Dl minwDul on iIJ suggested llrcqwlll
8"j, 9
I
Bmiin �N � FIRTIA WcflgndStwl�
sl'20o
PEIX
ReA Emaf'I.-Aaornv% Ckm, Mf, mt. li%N)
S:" 0 "'o
marl,cl tiAtld%' I"mD H.Clwil, (°mSWO]ly' Cos', vtc
Othci nd
$lo,(,)Oo
PEDC
FEES
PFDC Incentives
FIEDC,
Forg8ull'k' Lod 'm I< JOr�' R�iil
s'5cp0'00()
Lo,M kq LWd M'NS - L"A VAM $2!�,JM)
So"
PROJ E(T cos'rs RESPONSIBILITY
flaris EDC(periding Cily Councii approval)
City of Paris possibic approval)
(Nstimate over m vjs) $3,031,700
City of Paris
((pending
Ounty (pending possible approval)
(i'Aimaw m er lo.waEs) $2,365,800
Lamar 0 purl
PEUCTOTAL
S9,28,3.000
Vcl,don
1+1 IIA I'md prvh'-te umd dcmohnon is dw, cr1 d moW
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