19 - Tax Abatement Agreement with SpiralWeldRESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF PARIS, TEXAS AND AMERICAN SPIRALWELD
PIPE COMPANY, LLC; MAKING, OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris, Texas has been presented a
proposed agreement by and between the City and American SpiralWeld Pipe Company,
LLC, ("American") providing for a commercial and industrial tax abatement for certain
improvements, a copy of which is attached hereto as Exhibit 1 and incorporated herein by
reference, hereinafter called the "Agreement"; and,
WHEREAS, the City Council did heretofore, on the 22nd day of January, 2018, in
Resolution No. 2018-004, reaffirm its election to be eligible to participate in tax abatement
agreements authorized by the Property Redevelopment and Tax abatement Act, Texas
Government Code Chapter 312, et seq. (the Act"), in order to maintain and enhance the
commercial and industrial economic and employment base of the Paris area for the long
term interest and benefit of the City and its citizens; and,
WHEREAS, under the Texas Enterprise Zone Act (Texas Government Code Chapter
2303), the designation of an area as an Enterprise Zone also constitutes designation of the
area as a reinvestment zone (the "Reinvestment Zone"); and
WHEREAS, pursuant to the 2010 census, the property of the Company within the
City is included within an Enterprise Zone; and
WHEREAS, the contemplated use of the property, and the improvements to be
constructed and installed thereon in the amounts set forth in the Agreement and the other
terms therein are consistent with encouraging development of said Reinvestment Zone in
accordance with the purposes for which it was created and are in compliance with the
City's policy of tax abatement incentives and the ordinance creating such Reinvestment
Zone adopted by the City and all applicable laws;
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 therein meet the Guidelines and Criteria for Tax Abatement and should be
approved, and that the Mayor or Mayor Pro Tem 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, THAT:
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 and the property the
subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by the
City of Paris by Resolution No. 2018-004.
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as Exhibit 1, 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 or Mayor Pro Tem 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 1.
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.
DULY PASSED AND APPROVED this 24th day of September, 2018.
Derrick Hughes, Mayor Pro Tem
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
STATE OF TEXAS )
COUNTY OF LAMAR )
TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement (the "Agreement") is entered into by and between
the CITY OF 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 AMERICAN SPIRALWELD PIPE COMPANY, LLC, acting by and through
its authorized officer whose signature appears below (hereinafter referred to as "Owner").
WITNESSETH:
WHEREAS, the City Council of the City of Paris did heretofore, on the 22nd day of
January, 2018, in Resolution No. 2018-004, elect to be eligible to participate in tax
abatement agreements in order to maintain and enhance the commercial and industrial
economic and employment base of the Paris area for the long term interest and benefit of
the City and its citizens; and,
WHEREAS, under the Texas Enterprise Zone Act (Government Code Chapter 2303),
the designation of an area as an Enterprise Zone also constitutes designation of the area as
a reinvestment zone (the "Reinvestment Zone"); and
WHEREAS, concurrently herewith, the City and Owner and the Paris Economic
Development Corporation, a Type A economic development corporation with the duties
and authorities granted to it in Tex.Loc.Gov. Code Chapters 501 and 504, are executing a
Master Economic Development Agreement, to which this Agreement is attached as Exhibit
C and incorporated therein by reference, conveying certain real property (the "Property")
to Owner as an inducement to Owner to construct and operate a spiral weld pipe
manufacturing mill; and
WHEREAS, pursuant to the 2010 Census, the Property within City of Paris, Lamar
County, Texas, is included within an Enterprise Zone, as is shown in the print-out from the
Office of the Governor of the State of Texas on its website in Exhibit 1„ attached hereto and
made a part hereof for all purposes; and
WHEREAS, Owner has agreed to make the Improvements specified herein, said
Improvements related to the construction of the spiral weld pipe manufacturing mill
referred to herein above; and
WHEREAS, in connection with the Master Economic Development Agreement, the
Owner has agreed to create and maintain at least sixty (60) full-time equivalent
employment positions; and
WHEREAS, the contemplated use of the Improvements, as hereinafter defined, in
the amount as set forth in this Agreement upon and within the Property, and the other
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terms hereof 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 abatement incentives and the ordinance creating such Enterprise Zone
adopted by the City and all applicable laws; and
NOW, THEREFORE, pursuant to Chapter 312 of the Texas Tax Code and the
Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2016-08, the parties
hereto do mutually contract and agree as follows:
I.
Term
1.1 The effective date of this Agreement is the 24th day of September, 2018, with
the tax abatement being effective from and after January 1, 2 02 0, and terminating on
December 31, 2026 (an abatement period of seven (7) years (the "Abatement
Period")). Said Abatement Period will terminate on December 31, 2026, regardless of
when Owner completes the Improvements described in Sections II and III herein below.
H.
The "Property" - Area to be Improved
2.1 The Improvements defined in paragraph III below and made the subject of
this Agreement shall be located on the Property located in Paris, Lamar County, Texas Plant
and described in Exhibit attached hereto and incorporated herein by reference, which
Property is within the Enterprise Zone.
III.
Consideration: Improvements
3.1 The Owner shall construct and operate a state of the art spiral weld steel
pipe plant (herein called the "Improvements") at the Property located in Paris, Lamar
County, Texas, which are more particularly described in Exhibit 3, attached hereto and
incorporated herein by reference. The Improvements shall include the production facility,
an office building, and the installation of equipment to manufacture steel pipe and will
service large diameter water transmission projects in the South Central United States.
When completed, the Improvements will contain approximately 250,000 square feet under
roof. The manufacturing process will require substantial land dedicated to pipe laydown or
storage prior to shipment. The majority of the finished product will typically be shipped
within a 250 to 500 mile radius of the Improvements via flatbed carrier. Over a period of
three years, beginning in 2018, Owner commits herein to invest no less than
$72,000,000.00 and up to approximately $91,000,000.00 to construct the
Improvements, which shall be completed prior to September 15, 2021. All of said
improvements shall be described in the City's Certificates of Completion defined Section X,
"Reporting Requirements." For the purposes of this the default provision of this Tax
Abatement Agreement (Section V), the Improvements will be deemed completed upon the
issuance by the City of Certificates of Occupancy for the structures included in the
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Improvements. Once Owner has applied for said Certificates of Occupancy, the City shall
not unreasonably delay the issuance of same. Notwithstanding the foregoing, however,
Owner shall have such additional time to complete the Improvements as may be required
in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of
the Improvements. For this purpose, "force majeure" shall mean any contingency or cause
beyond the reasonable control of Owner including, without limitation, acts of God, any
natural disaster, war, riot civil commotion, insurrection, governmental or de facto
governmental action unless caused by acts or omissions of Owner, fires, explosions,
accidents, floods, and labor disputes or strikes.
3.2 The Owner agrees and covenants that it will diligently and faithfully, in a
good and workmanlike manner, pursue the completion of the Improvements. As good and
valuable consideration for this Agreement, Owner further covenants and agrees that all
construction of the Improvements will be in accordance with all applicable state and local
laws, codes and regulations, or Owner will procure a valid waiver thereof. In further
consideration, Owner shall thereafter, from the date a Certificates of Occupancy for the
structures on the Property are issued or the Improvements are completed as agreed until
the expiration of this Agreement, continuously operate and maintain the Property and the
Improvements as a spiral weld pipe manufacturing plant.
IV.
Consideration
Jobs
4.1 The City has provided in its Guidelines and Criteria for Tax Abatements, that
in order to be eligible for a tax abatement, a new employer must make a minimal capital
investment of $1,000,000.00 and create at least ten (10) new jobs. Owner herein has
committed to a minimum investment of $72,000,000.00, and as a part of the Master
Economic Development Agreement, has committed to creating at least sixty (60) new full-
time equivalent positions with an estimated direct payroll of approximately $3,147,027.00.
Due to the substantial penalties set forth in Master Economic Development Agreement
should Owner fail to create and maintain said sixty (60) full-time equivalent positions, the
City has agreed to forego any penalties for such failure in this Tax Abatement Agreement.
In so doing, the City Council has determined that the penalties set forth in the Master
Economic Develop Agreement provide sufficient protections for the City.
V.
Default
5.1 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 allows its ad
valorem taxes owed the City to become delinquent and fails to timely and properly follow
the legal procedures for protest or contest of any such ad valorem taxes; or (c) Owner
materially breaches any of the other terms and conditions of this Agreement, then this
Agreement shall be in default. In the event the Owner defaults in its performance of either
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(a), (b), or (c) above, the City shall give the Owner written notice of such default. 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 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 a determined
by Section 33.01 of the Tax Code of the State of Texas, with all penalties permitted by the
Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas,
shall be recaptured and will become a debt to the City and shall be due, owning, 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 lawful 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.
VI.
Tax Abatement
6.1 Subject to the terms and conditions of this Agreement, and subject to the
rights and holders of any outstanding bonds of the City, a portion of ad valorem Property
taxes from the Property otherwise owed to the City shall be abated. Said abatement shall
be an amount equal to the following percentages of the taxes assessed upon the increased
value of the Improvements made by Owner to the Property described in Section III of this
Agreement, over the value in the year which this Agreement is executed (the "Base Value"),
in accordance with the terms of this Agreement and all applicable state and local
regulations or valid waivers thereof; provided that the Owner shall have the right to
protest or contest any assessment of the Property and said abatement shall be applied to
the amount of taxes finally determined to be due as a result of any such protest or contest:
Year 1
100%
Year 2
100%
Year 3
70%
Year 4
70%
Year 5
50%
Year 6
25%
Year 7
25%
For the purposes of this Agreement, the Base Value of the existing real property shall be
deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as
of January 1, 2018.
6.2 The abatement granted herein shall be subject to and governed by the
Criteria and Guidelines for Tax Abatement, a copy of which is attached hereto as Exhibit 4
and incorporated herein by reference, save and except that, in the event of a conflict
between the requirements of Exhibit 4 and this Agreement, this Agreement shall control.
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6.3 Owner covenants and agrees that subsequent to the date of this Agreement,
any application by Owner for a new tax abatement for equipment or real property located
within the Property and the Enterprise Zone applicable to this Agreement shall be subject
to and governed by the City's Criteria and Guidelines for Tax Abatement in effect at the
time of the new application.
VII.
No Conflict of Interest
7.1 The Owner represents and warrants that the Property does not include any
Property that is owned or leased by a member of the Planning and Zoning Commission of
the City of Paris, nor by a member of the City Council approving, or having responsibility
for the approval of, this Agreement.
VIII.
Conditions
8.1 The terms and conditions of this Agreement are binding upon and
enforceable against and with respect to the successors and assigns of all parties hereto.
8.2 It is understood and agreed between the parties that the Owner, in
performing its obligations hereunder, is acting independently; the City assumes no
responsibility or liability in connection therewith to third parties; and Owner agrees to
indemnify and hold the City harmless therefrom. It is further understood and agreed
among the parties that the City, in performing its obligations hereunder, is acting
independently; the Owner assumes no responsibility or liability in connection therewith to
third parties; and, to the extent permissible by law, the City agrees to indemnify and hold
harmless the Owner therefrom.
IX.
Compliance Provisions
9.1 City's Right of Access to Records: The Owner agrees that the City, its
agents and employees, shall have the reasonable right of access to records concerning the
Owner's investment in the Improvements for the purpose of conducting an audit of the
Project Improvements and Project costs. Any such audit shall be made only after giving the
Owner at least fourteen (14) days advance written notice and will be conducted in such a
manner as to not unreasonably interfere with the operation of the facility. Upon request,
the Owner will provide the City with a detailed Asset Report with an itemized list of assets
placed into service from the date of execution of this Agreement to the date of completion.
The Asset Report will provide for each asset a unique serial and/or other identification
number (if available), the date on which the asset was capitalized, the acquisition amount,
and the accumulated depreciation amount. At the City's request, the Owner will provide
actual invoices to support the amounts shown on the Asset Report.
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9.2 Cit 's Riahts of Access to Pro er The Owner further agrees that the City,
its agents and employees, shall have reasonable right of access to the Property to inspect
the Improvements in order to insure that the construction of the improvements is in
accordance with this Agreement and all applicable state and local laws and regulations or
valid waiver thereof. After completion of the Improvements, the City shall have the
continuing right to inspect the Property to insure that it is thereafter maintained and
operated in accordance with the Agreement during the term of the Agreement. All
inspections will be made only after giving the Owner written notice at least seventy-two
(72) hours in advance, and such inspections shall be conducted in such a manner so as not
to interfere with the operation of the facility. Representatives of the City inspecting the
Property and Improvements shall be accompanied and by one (1) or more representatives
of the Owner and shall sign an Agreement promising to maintain the confidentiality of any
information they obtain in connection therewith except for the purposes of assessing and
collecting ad valorem taxes and verifying or enforcing compliance with this Agreement, or
as otherwise required by law. Said representative shall also be required to observe any
facility rule and regulation applicable to the Property. Nothing herein shall be construed as
limiting the City's ability to perform inspections or to enter the Property the subject of this
Agreement.
X.
Reporting Requirements
10.1 Annual Re ort on Im rovements for the Years 2019-2021: The
Owner further agrees that it will, by December 31 of each year 2019-2021, provide the
City with a sworn report, written on Owner's letterhead and signed by a designated
representative of Owner, which contains the following information relating to the
improvements completed in the applicable calendar year:
(a) A copy of the printout from the Lamar County Appraisal District showing
the market value of the Property as of January 1, 2018, prior to the
construction of the Improvements;
(b) Detailed description of the Improvements;
(c) A detailed description of any miscellaneous items of office equipment and
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;
(e) A detailed list of and the actual cost of added machinery and equipment;
(f) The actual cost of capital Improvements; and,
(g) The date of substantial completion of the Improvements as defined in
paragraph 3.1 hereof.
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10.2 Annual Report on Compliance for Each Year of the Abatement Period:
In addition to the report required
that by October 31st of each year of this Agreement it will provide the City with an
annual sworn report which shall certify, in writing, that it is in compliance with each
applicable term of this Agreement. Such annual report shall be furnished in the form
attached hereto as Exhibit 5 and incorporated
prior fiscal year. Owner shall attach thereto copies of the employer reference summary
page of its Texas Workforce Commission Employer's Quarterly Reports for the calendar
year immediately preceding the a"_
signed of the annual report required by this section, and
the report shall contain a sworn statement by the Plant Manager or an Officer of
the Company certifying that the information provided in the summary page is a true and
valid report filed with the Texas Workforce Commission.
10.3 The reporting requirements and deadlines set forth herein are an integral
and material part of this Agreement, and Owner acknowledges that failure to timely
submit any report or sworn statement required herein is a breach and default of this
Agreement as set forth hereinabove. Owner further agrees to timely submit said reports
and/or sworn statements without prompting by the City.
10.4 Owner shall submit all compliance reports required to by this section via
certified mail, return receipt requested, to:
City of Paris
c/o Office of the City Attorney
P.O. Box 9037
Paris, Texas 75461-9037
Alternatively, said reports may be delivered personally to the Office of the City Attorney
at 135 SE 1st St., Paris, Texas 75460.
XI.
City's Certificate of Completion
11.1 Within thirty (30) days of receipt of each Annual Report on Improvements
required by paragraph 10.1 hereinabove, or as soon thereafter as practicable should the
City require additional information from the Owner, the City shall:
(a) review same for compliance with the terms of this Agreement;
(b) verify that the Improvements identified in the Report and required by the
terms of this Agreement have been completed;
(c) and, if the required Improvements have been made, deliver a Certificate of
Completion in the forms attached hereto as Exhibit 6 and executed by the
Mayor to the Chief Appraiser of the Lamar County Appraisal District. The City
shall attach to said Certificate of Completion a copy of the information
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provided by Owner in its Annual Report on Improvements as an
identification of the Improvements upon which the tax abatement is to be
granted.
11.2 In the event that the City requires additional information in order to conduct
the review and verification contemplated by paragraph 11.1 hereinabove, the City shall
notify the Owner of same as soon as is practicable, but no later than thirty (30) days after
receipt of the Annual Report on Improvements.
11.3 Nothing in this section shall prohibit the City from exercising its right to
declare Owner in default or Owner's right to cure same in accordance with the terms of
Section V hereinabove.
XII.
Authority to Contract
12.1 This Agreement was authorized by resolution of the City Council at its
regularly scheduled meeting on the 24th day of September, 2018, authorizing the Mayor to
execute the Agreement on behalf of the City.
12.2 This Agreement was entered into by American SpiralWeld Pipe Company,
LLC pursuant to the authority granted to the authorized official whose signature appears
below.
12.3 This Agreement shall constitute a valid and binding Agreement between the
City and Owner when executed in accordance herewith, regardless of whether any other
taxing unit executes a similar Agreement for tax abatement.
XIII.
Legal
13.1 No officer, official or agent of the City has the power to amend, modify or
alter this Agreement or waive any of its conditions or to bind the City by making any
promise or representation not contained herein.
13.2 This Agreement, except by operation of law, shall not be assigned or
transferred by Owner, without the prior written consent of City, which consent shall be at
the sole discretion of the City.
13.3 Any written notice required or permitted under the terms of this Agreement
shall be given and be deemed to have been duly served if either (1) delivered in person, or
(2) deposited certified mail, return receipt requested, postage prepaid in the United States
mail, addressed to the designated representative of the respective parties which are
designated as follows:
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OWNER:
AMERICAN SPIRALWELD PIPE COMPANY LLC
Attn: Pat Hook, VP of Operations
2061 American Italian Way
Columbia, SC 29209
With a copy to;
W. Lee Thuston
Burr & Forman, LLP
420 North 20th Street
Suite 3400
Birmingham, AL 35203
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P.O. Box 9037
Paris, TX 75461-9037
With a coDv to:
City Clerk, City of Paris, Texas (address same as above)
City Attorney, City of Paris, Texas (address same as above)
13.4 If any term or provision of this Agreement shall be declared unconstitutional or void
by any court of competent jurisdiction, the constitutionality and validity of the remainder
of said Agreement shall not be affected thereby, and to this end the terms and provisions of
this Agreement are declared to be severable.
13.5 This Agreement sets forth the entire understanding between the parties, and any
other understandings or agreements shall be canceled and superseded by this Agreement
upon the date of execution hereof. None of the terms of this Agreement shall be 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
are included for convenience only and shall not be taken into consideration in any
construction or interpretation of this Agreement or any of its provisions. This Agreement
is performable in Lamar County, Texas, and shall be governed by, construed and enforced
in accordance with the laws of the State of Texas. The provisions of this Agreement shall
apply to, bind and inure to the benefit of the City, Owner, and their respective successors,
and permitted assigns, if any.
13.6 Venue for any actions arising under this Agreement 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.
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13.7 Owner and the City have both contributed to the drafting of this Agreement, and no
ambiguity, if any, contained in this Agreement shall be construed against either party.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective
as of the date set forth below.
WITNESS our hands this ® day of , 2018.
THE CITY OF PARIS, TEXAS
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
AMERICAN SPIRALWELD PIPE COMPANY, LLC
ATTEST:
Title:
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LIST OF EXHIBITS:
1. 2010 Designation of Enterprise Zone which includes the Property
2. Map of the Property
3. List of Construction Improvements and drawings showing the location of the
Improvements on the Property and the layout of the buildings to be constructed
on the Property
4. Resolution No. 2018-004; Criteria and Guidelines for Tax Abatement
S. FORM: Annual Certificate of Compliance
6. FORMS: Certificates of Completion
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Construction Scope:
1. Provide construction management and general conditions to perform requested
new plant operations.
2. Demolition to include removal of existing utilities as need for tie-in services.
a. 8" PVC Water line —1201f
b. 12" PVC Water Line — 8701f
c. Fire Hydrant Removals — 2 ea
3. Earthwork for production building, business office/ locker room, shipping office,
gravel pipe laydown, concrete parking and service drives.
a. Production Building:
i. Moisture Conditioning 10 ft depth
ii. Select Fill 3 ft depth
b. Business Office —
i. Moisture Conditioning 10 ft depth
ii. Select Fill 3 ft depth
c. Shipping Office -
i. Moisture Conditioning 10 ft depth
ii. Select Fill 3 ft depth
4. Utilities include water, fire loop, sewer, gas and storm water.
a. 6" Sewer - 2451f
b. Water & Fire Line — 3,7171f
c. Storm—1,6001f
d. Gas Line — 2,7001f
e. Sewer Manholes — 2 ea
f. Fire Hydrants — 9 ea
5. Site features include extending railroad track, 6 -foot chain-link fence with gates,
gravel pipe laydown areas, concrete pavement with pavement markings and
signage.
a. Railroad Track — 1,7121f
b. Chain -Link Fence—10,4001f
c. Sliding Drive Gates — 2 ea
d. Swing Gates at Railroad — 2 ea
e. Lift Gates at Shipping Office — 2 ea
f. 24" Gravel (Laydown Area) - 26.4 acres
g. 8" Gravel at Paving — 370,778 sf
h. 15" Concrete Paving Aprons — 63,024 sf
1 818 1 510 South Church p
i. 10" Concrete Paving at Production Building and Drives — 319,225 sf
j. 6" Paving at Employee Parking — 56,238 sf
k. Pavement at Railroad Crossovers — 3 ea
1. 4" Sidewalks/Stoops — 8,083 sf
6. Concrete foundations included for production building, poly storage, boiler
building and business office. (Slab on Grade with associated grade beams)
a. Production Building — 290,640 sf
i. 6'-0" thick Concrete at Coiling Machine
ii. 2'-6" thick Concrete at Coil Staging Area
iii. 1'-8" thick Concrete at Curing Area
iv. 1'-0" thick Concrete at Other Areas
v. Cased Piers - 380 ea
vi. Equipment Pits included as shown on layout provided
vii. Concrete Slabs on Metal Deck at interior offices
b. Poly Storage Building — 2,050 sf
i. 1'-0" thick Concrete
ii. Piers - 8 ea
c. Boiler Building —1,200 sf
i. 1'-0" thick Concrete
ii. Piers — 4 ea
d. Business Building — 14,400 sf
i. 6" thick Concrete
ii. Piers - 24 ea
7. Masonry 8" CMU walls for poly storage building, interior production offices,
production restrooms and split -face CMU wainscot at business office.
a. Poly Storage Building — 2,850 sf
b. Interior Production Offices & Restrooms — 9,500 sf
c. Business Office Split -Faced CMU Wainscot - 2,240 sf
8. Structural steel supports for 3 areas of production cranes, roof structures for CMU
walls areas, bollards, ladders, and embeds.
a. Roof Ladders — 2 ea
b. Bollards — 300 ea
c. Concrete Embeds at Machinery - Allowance
d. Embeds, Joists and Metal Decking
i. Interior Offices — 5,000 sf
ii. Production Area Restrooms — 610 sf
iii. Production Coil Office — 144 sf
iv. Poly Storage — 2,050 sf
e. Independent Crane Steel Structures — 3 ea
9. Millwork cabinets and countertops have been included for breakrooms in
production office and business office areas.
a. Production Offices — Allowance of $32,000.00
b. Business Office — Allowance $22,000.00
10. Expansion/ control joint sealants for paving, foundations, and CMU walls.
11. Hollow metal frames, hollow metal & wood doors with hardware for production
building, business office/ locker room and shipping office.
12. Overhead steel rolling doors at production building.
a. 20'-0" x 16'-0" O.H. Coiling Doors — 22 ea
b. 26'-0" x 20'-0" O.H. Coiling Doors — 5 ea
c. 12'-0" x 8'-0' O.H. Coiling Doors — 3 ea
d. 20'-0" x 60'-0" Manual Sliding Door —1 ea
13. Interior stud framing and drywall, ceilings, painting, floor finishes, miscellaneous
specialties for production office/ restrooms, business office/ locker room and
shipping office.
44-. Doek equipme4# for- the ofte loreatien a4 pr-oduetion building ineludes dersk seats—,
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15. Appliance allowance for production and business office breakroom areas.
16. Pre -Engineered metal buildings:
a. Production Building - 290,640 PEMB with roof and wall insulation.
b. Business Office Building —14,400 SF PEMB with roof and wall
insulation.
17. Mobile/ Portable building for 1,000 SF shipping office.
18. Cranes at production building include: 3 -ton for maintenance, 55 -ton for coil
storage,'/2-ton jib at coil storage, 1 -ton at curing, 1 -ton at lining and 10 -ton at
lining.
19. Plumbing systems:
a. Production Building — Water, sewer and vent piping for office restroom
fixtures and production restrooms fixtures, floor drains, natural gas lines,
compressed air lines and steam lines.
b. Business Office — Water, sewer and vent for fixtures at restrooms, locker
room and breakroom.
c. Shipping Office — Water, sewer and vent for fixtures at restroom.
20. New fire sprinkler protection system at production coating area and poly storage
building only.
21. Mechanical systems:
a. Production Building - Heat and AC to production offices/ breakroom/
restrooms, infrared tube heat and dehumidification at coating area, heat
and AC to coating mixing room with roof top exhaust and unit heaters at
Soi,.ftfh Church
poly storage building, production areas to receive roof top exhaust fans to
perform 6 air changes per hour.
b. Business Office — Heat and AC for whole building with restroom and
locker exhaust fans.
c. Shipping Office — Heat and AC for whole building with restroom exhaust.
22. Fire Alarm Systems to include strobe, horns and wiring at production building,
office building. Includes an independent aspiration system at production coating
area.
23. Electrical Systems:
a. Site — Provide conduit distribution to each building location from service
provider transformer, site lighting for laydown, parking lots and roadways.
b. Production Building — Provide electrical distribution for power and
lighting, conduits raceways, light fixtures, gear and panels, transformers,
MSA gear, MCC gear, disconnects, connection to equipment, overhead
doors, cranes, installation of grounding system, perform volt testing and
terminations.
c. Business Office — Provide electrical distribution for power and lighting,
conduits raceways, light fixtures, gear and panels, data drops at office to
above ceiling.
d. Shipping Office — Provide electrical distribution for power and lighting,
conduits raceways, light fixtures, gear and panels, data drops at office to
above ceiling.
TEAM
L'i; Mow I ull']"
I'l
RESOLUTION NO. 2018-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
AUTHORIZING THE CITY TO BE ELIGIBLE TO PARTICIPATE IN PROPERTY
TAX ABATEMENTS AND APPROVING GUIDELINES AND CRITERIA FOR
GRANTING TAX ABATEMENTS IN THE CITY OF PARIS, TEXAS; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, Section 312.002 of the Texas Tax Code requires local taxing units to state every
two years their intent to participate in property tax abatement agreements and to adopt guidelines
and criteria for granting tax abatements; and
WHEREAS, the City Council of the City of Paris, Texas hereby reaffirms its intent to be
eligible to participate in property tax abatements 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 three-quarters majority vote of the City Council of the City of Paris, Texas is
required to amend the Guidelines and Criteria for Tax Abatement;
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. The City hereby elects to be eligible to participate in a property tax abatement
program and approves and adopts the amended Guidelines and Criteria for Tax Abatement
attached hereto and incorporated herein as Exhibit A.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 22nd day of January, 2018.
APPROVED AT TO FORM:
(2414
.2
Steph nie H. Harris, City Attorney
Stever J ford, M. ., l ayor
m.
(Updated 01-08-18)
POLICY STATEMENT
'CRITERIA AND GUIDELINES FOR TAX ABATEMENT
1. General Purpose and Objectives.
The Citg of Paris (Citili, and Lamaii 1:F
"Taxing Jurisdictions") are committed to enhancing the competitiveness, and expansion potential
of local industry; to attracting and encouraging new manufacturing industry and investment; to
improving the City of Paris, Lamar County and its infiastructure, which attracts and supports
development; and, to expanding the tax base, ernpioyment opportunities, and the overall quality
of life for its citizens. Therefore, the governing bodies of the Taxing Jurisdictions will give
consideration, on a case-by-case basis, to providing tax abatements to the owners of real and
personal property for projects that stimulate economic growth and diversification in the
geographic areas served by the Taxing Jurisdictions, according to state law and consistent with
these policies, criteria and guidelinm
Tax abatements may be made available to industrial, manufacturing, distribution, service facilities,
or any "primary jobs" creating industry as defined by the Economic Development Act of the Stat -i
of Texas. The facility must be currently in, or locating in the areas served by the Taxin��
Jurisdictions, and located in a designated Enterprise Zone or Reinvestment Zone. New facilities
and structures as well as the expansion and modernization of existing facilities and structures, will
be considered. Evaluation of
the tax abatement application. However, the City of Paris and Lamar County are under no
obligation to provide tax abatements to any applicant.
The Paris City Council acts as the lead entity for projects located in the City limits. The Lamar
County Board of Commissioners acts as the lead entity for projects in Lamar County, which are
located outside of the City limits. All governing bodies of the Taxing Jurisdictions have adopted
like policies, criteria and guidelines and will consider tax abatement requests that qualify
thereunder.
11. Derinitions.
,Definitions are Movided as an AUpendix A.
111. DeSIgRAtiOR of a Reinvestment Zone.
For any facility located within the area served by the Taxing Jurisdictions to be eligible for tax
abatement it must meet the criteria for designation as a tax abatement reinvestment zone as set
forth in the Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312. The
City or County may designate an area as a reinvestment zone in accordance with the criteria and
procedural requirements set forth in the Property Redevelopment & Tax Abatement Act, as
amended (Texas Tax Code See. 312.401 (b)). Pursuant to Texas Tax Code See. 312.2011,
designation of an area as an enterprise zone under Chapter 2303 of the Texas Government Code
constitutes designation of the area as a reinvestment zone without further hewing or procedural
requirements other than those provided under said Chapter 2303.
TV. Tax Abatement Authorized.
Ile Taxing Jurisdictions, through their elected governing bodies, may agree in writing with the
ow
but that is not in an improvement project financed by tax increment bonds, to exempt fr1m
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
taxation a portion of the value of the real property, or of personal property located on the real
property, or both. The period of the abatement granted under the agreement shall not exceed th(i-,
term authorized by law. Such agreement will be ba"d on the condition that the owner or
lessee of the property makes specific improvements or repairs to the property. An agreement
oa*—vide for the exem:4tion of the real ioxcys-,ertVA in each = mcvered ithe
the extent its value for that year exceeds the base 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 personal property that was located on the real property at any time before
the period covered by the agreement. Inventory or supplies cannot be abated as personal
property.
Tax abatements may only be granted tbr additional value of eligible property improvern
made subsNuent to and specified in an abatement agreement between the Taxing Jurisdictio
The additional value must exceed any reduction in the fair market value of other property of tf
owner already on the tax roll within the area served by the Taxing Jurisdo m. Change i
7,- 1VM*aS7'F'1M1
authorized facility is utilized. Value added to the tax rolls must come from actual capit
expenditures.
The negotiation of tax abatement agreements will be conducted by the Pads Economic
Development Corporation's ("PEDC') executive director, in close consultation with the city
manager. In determining where and how tax abatements will be utilized, the executive director
will examine the potential return on the public's investment. Return on public investment will be
measured in terms of (i) jobs created, (h) jobs retained in cases of existing employers within the
Taxing Jurisdictions, and broadening of the tax base and expansion of the economic base
capital investment, payroll, local spending,
V. Eligibility Criteria for Tax Abatement for Real and Personal Property
A property owner and/or lessee shall be eligible for tax abatement only upon the following
ciile4a.
Facility
tourist entertainment, other basic industry, or any prinuiry jobs creating industry. (See Appendix A for
definitions.)
2.
A new authorized facility must be created, or an existing authorized facility must be improved, moderrked
or expanded.
leased autliurized facty is granted abatemeni the agreement may be executed with the lessor and/or
lessee, depending upon the particular circumstances of the proposed project. If the agreement Ls with the
lessor, lessor shall demonstrate binding contracts with the lessee to guarantee compliance with the terms of
m ent.
1,
The pr must be a newly created, or improvements to an existing, authorized facility,
Property 2.
Eligible property for which abatement may be granted includes nonresidential real property and/or tangible
personal property not located on the real property at any time before the abatement agreement becomes
effective.
3,
Abatement may be extended to the value of buildings, strtictures, fixed machinery and equipment, site
improvements, tangible personal property, and that office space and related fixed improvements necessary
to the operation and administration of the authorized facility. . ........... . ... .... -
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
vestment, Payroil and Job Crenflon Criteria
" 4 .
7
1;1 C.-ALYJ J 114 11
1. To be eligible for any tax abaterawt, there must be a minimum capital investment in the authorized facility of $ 1,000,000 an
at least ten (10) newjobs added to die new employer's labor force.
2. Any project with a capital investment of more than twenty-five million dollars ($25,000,000), AND accompanied by a
newly created minimum aruival payroll of two and one-half million dollars ($2,500,000), OR creating more than two
hundred twenty-five (225) jobs will be individually negr&
specified in slate law, no abatement will be granted for more than 10 years and the total abatement shall not exceed
100%.
4. A newly created business must be (or will be) located within an enterprise zone or a. reinvestment zone.
5. The taxing jurisdictions recognize a significant difference in the valuation of real property versus personal property.
Because of depreciation schedules, the abatement of personal property could result in a tax exemption. For this reasan, t
abatement schedule for personal property versus real property may be different. Each industrial account is looked at and
valued on an individual basis by the Lamar County Appraisal District (LCAD). The typical depreciation used for
industrial accounts by LCAD is as follows:
a. Computers — 3 year fife
b. Furniture& Fixtures— 10 year life
c. Vehicles— 7 to 10 year life (depending on type)
d. Machinery& Equipment— 15 year life (maybe longer or shorter depending on the type)
6. For each abatement request the P. will evaluate the equipment (personal property) investment and useful life separate
from the real estate (real property) investment to determine Me length of the abatement for each,
7. If personal property should become obsolete and be replaced while under an abatement agreement, the replacement
personal property is not eligible for abatement.
8. The charts below provide capital investment guidelines to qualify for tax abatement and the related schedule and
percentage of abatement.
2
Year 3
.. .... . ...........
50
600
P
$25,000,001 and Above
2
(Updated 01-08-18�
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMEV-1
9. An additional 20% abatement for new job creation is available based on the Mowing requirements:
a. A project that creates a minimum of 10 new jobs.
b. The new job wages are equal to or greater than the current County average wage for all private sector jobs excludirig
retail trade and accommodation and food services ($41,158 annually for 2013. Source: Texas Workforce Commission
via %A-nA,,W,,_traccr2.qnm. Mote.- Ais repments 547 companies. 10,470jobs and 56% pf allprivate sector employment in
Lamar County.)
c. The taxing jurisdictions and the company inust agree to include measuring, tracking and annual reporting of the net
job increases (existing jobs plus new jobs) for the entire term of the abatement agreenwat.
... I -"'' . . . ......... ..... . ...................... - --------- - . . ....... -
For Net Nee.eeeeeew Jobs (New Job Creation and Retention of Exi )Obs)
Net New Jobss. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
10 new jobs minimum. *20% 20% 20% 20% 20% 20% 20%
2. New job wages =car > average annual
wages for prNate secior jobs in Lamar
County. (Excluding reuil, acconmwdaUons, food
service. See It 9.b. above.)
3, Agree to maintain existing base and now
jobs during the entire bum of agreement,
4. *Year I cannot, exceed 100%-
. ... ...... - . -1-1--'_ -," -- -, -1- -- ........................
V1. Tax Abatement for Existing Employers Regarding Real or Personal Property,
The Taxing Jurisdictions recognize the value of its existing employers to the well-being of the
City and County. The Taxing Junsdictions desire to encourage existing employers to remain in
the Taxing Jurisdictions and to improve their respective businesses and industries, as well as their
profitability.
Accordingly, if an existing employer (as opposed to a newly created business or industry moving
into the Taxing Jurisdictions), owns or leases an authorized facility and has plans to improve such
iffoperty by constructing new improvements on its real property and/or adding new personal
property to r facty which qualify for tax abatement under these Policies, Criteria
Y-nd Guidelines, such employer may be eble for tax abatement with respect to such
improvements to its real property or its new personal property under the provisions of Article V
".bojobs or newly created minimum annual payroll are created.
M 71 - . I Iff 11111 -* I * - 1 0 9MM
; W-1 to t1 i v 4 F�r
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
The local taxing jurisdictions encourage existing employers to retain as many jobs and as mueb
existing annual payroll as is economically feasible for the existing employer, while remaining
compeve in its industry.
V11. Greenfield projects
In order to encourage the development of greenfield properties and also to be able to expedite
y Ulu, U i At odlim, A
11
'1111111,1001111111 1 ING W I 1 4, a 10111011411" . I I I I I
r -F- I- --JV. F -
V1 A pp"#9n Process
.. .............. . .. —
Eligibility Any present or potential owner of taxable property in the Taxing Jurisdictions may request tax
fient b ling 0-"., 11—a
1 NOR A.
to I I
1,14 M*
1 i4
FMOARFMNAO. ft;a(41W-;MJ MI'li'd 4
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
. ...... ...
designation of a reinvestment zone and execution of a tax abatement agreement.
2. The lead Taxing Jurisdiction (typically the City of Paris) may adopt an ordinance designating a
tax abatement reinvestment zone only after notice of a public hearing has been published at
least seven (7) days before the date of the hearing, and all other procedural requirements of
ter 312 of the Texas Tax Code have been satisfied,
- ---- -----
In order to enter into an agreement, the Taxing Jurisdictions must find that:
I . The terms of the proposed agreement comply with these Policies, Criteria and
Guidelines.
2. There will be no substantial adverse effect on the provision of Taxing Jurisdictions' services
or tax base.
3. That the planned use of N will not constitute a hazard to public safety� health, or
morals.
4. Incident to approval of any ordinance designating a reinvestment zone, the Taxing
Jurisdictions shall find that the improvements sought ate fe.asible and practical and would be a
benefit to the land to be included in the reinvestment zone and to the Taxing Jurisdictions
after the expiration of the �&!ep
1' 1variance from the provisions of these Policies, Criteria and Guidelines may be made
in writing to the Taxing Jurisdictions; provided, however, that in no event shall the term of any
abatement exceed the period authorized by applicable state law. Such request shall include a
complete description of the Ili,stances requiring a variance, Approval of a request for variance
shall require the affirmative vote of three-fourths (3/4) of the members of each of the Taxing
Jurisdictions' Vernlnsbqd��
e afttion of ihese Policies, Criteria and Guidelines by the Taxing JurL-,&tions does not limit
the discretion of the Taxing Jurisdictions' governing bodies to decide whether to enter into a
specific tax abatement agreement. Nor does it limit their discretion to delegate to their employees
the audwrity to determine whether or not the Taxing Jurisdiction should consider a particular
arDlicadon or request for tax abatement, or create agy roTa&.o 1 orother SqaA^ ltn
an
v
V f 1 1 1 �,Ij 11 1 1 1 A 11 , 11 1 T: 19006 UMjqqjjT'—T#W t1b
V111. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terms and conditions to be included in any formal tax
abatement legal agreement.
IX 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 affirmative vote of three -fourth& (3/4) of the
memE`rs of each governing body (City, County).
For a tax abatement application or additional information contact:
Paris Economic Development Corporation
1125 Bonharn Street
Paris, Texas 75460
Phow 903-784-6964
Fax: 903-784-2503
Website, www— texasusa,com
Email: aa -janslexasusa,com
'Term
Abar ment or Tax The
Deflnition
or [',atiisl exeimlion from ad valorem taxes of certain real and tankable personal
Commercial or
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEVE107i
y.
70
t
776177-7 n
properties my be considered for abatement of City taxes only. The City of Paris will
approve their residential abatement policies, criteria and guidelines separate from these
" --' 6, ' -, - - -- - ---- ------- . .. . ..........
The purpose of which is or will be the manufacture of tangible goods or materials or the
processing of such goods or materials by physical or chemical change. Facilities
primarily engaged in assembling component parts of n-onufactured products are also
considered manufacturing facilities.
— --------- - - --- --
Used &KA1
the goods or services are distributed to points at least 100 miles from its location in the
jaxj,qgj di�qt-LI q, of Paris and Lamar Couyaty�_,
Used in pFoviding amusemeat/enwminment duough the admission of the general public
where the rmjority of users reside at least 100 miles from the Taxing Jurisdictions and where
the majority of users are likely to stay in the Taxing Jurisdictions for more than one day and
will therefore likely utilize local restaurants wW hotellniotel accommodations.
Research Facility
- �♦'U" - "T P104"t "ITT. "T WATT,'y444 iii
T
materials or to wqr i-, v I1ip, ki A- es; thereto.
C or
Set -vice industry
c us"y
creation or new jobs ana bring new weatM Ulto the I axing Jurisdictions (e.g. healtheare-
related
ry 3 s
Any industry creating "primary jobe' defined as a job that is available at a oompany for
Cremating Industry
which a majority of the product-, or services of that company are ultimawly exported to
regional, statewide, national, or international markets infusing new dollars into the local
.. ......... . ........ . ...... . ........
Base Year Value
Th ed value of elieible i as of Janua I recedine the date of e
Employer
-one
k meni, Z
Entel ise 4pne
. . . . . . . . . I
Job or Jobs
kT*wifrall s- mdwlp 11i. 00601
employer as a worker or employee of an employment agemy or employment sery ce. "Jobs"
also includes "Full-timeggiviyaleat Jobs" defined below.
Full-time EquiGGi
The intention of the governing bodies is to provide a company the maximum f!"ibrility, m
(FTE) Jobs
running their business and making business decisions, especially related tostaffing. The
following definitioti of FTE will be reflected in all incentive agreements. An FTE is�
individual working 40 hours per week in ajob defined above.
2. A number of pan -time jot$ where the hours worked in each such job is less than 40 hours
per week, made avdable by one employer and added together to total 40 hours per week.
For examrAe, f4 obs made available by one emplo,,,�tx where all such
1 1 1 a '! 01-08-18)
part-timePOLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
part-tftne jobs added together require a total of 380 hours of work per week (butno such
I M b requires / �r hours� 1' , more ,. . ► i 1 w
0
5) FTE jobs (3 80 hours divided by 40 bours per week equals 9.5).
output, updates the technology, or substantially lowers the unit cost of operation.
Modernization may result ftom the construction, alteration or installation of buildings,
structures, fixed machinery or equipment, but shall not be for the purpose of reconditioning,
refurb or defund maintenance.
t}f.►: ►, iF `:Machinery,
equipment, of shelving or materials iF' f applicable law for tax
abatement, ; i. be removed from a ! authorized
u,:l�"
1' U f ► "!I' !' r_ 1 ! "4� s: f '1'
i
11�1�f, M^'� !f fl:. ! 1-! � ♦': '". ! � � !y' M � ! ► �+l� f.� �-. c '
0
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Abatement Agreement Terms and CoRdifions
After approval, the Taxing Jurisdictions shall formally pass an order or resolution and authori
the execution of an agreement with the owner and/or lessee of the authorized facility, which sh911
include, but not be limited to the following terms and conditions:
NE .
RE
�74 217"
no -u=
Contract
Review,
IV* T
4W fj-W)1C-o4
1
(Updated 01-08-18)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
were contu ea in
by which the original agreement was approved and executed., The original agreement, however,
may not be moded to extend the term of the agreement or the term of the abatement granted
1. h -a -ch -Taxing J&Crvdi—ctj-on--sha1F6e res—porisiffl-e-fo—rl-ie�adm—uumzuon, review, and monitoring or
tax abatement agreements authorized by them Taxing Jurisdictions under these Policies,
Criteria and Guidelines. These responsibilities shall include awmally veri6ing participants in
tax abatement agreements are in full compliance with the terms of the agreement, including
compiction and submission of all required documents in a timely manner.
2. The Paris City Attorney shall expeditiously advise the Taxing Jurisdictions in writing of any
instances of contract non-compliance by tax abatement peorticipants. In addition, the Paris City
Attorney shall, on an annual basis, conduct a performance 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 independently review and
audit the activities of tax abatement participants, and shall be responsible for enforcement of
the terms of any tax abatement agreement authorized hereunder.
4. Annually the Paris City Attorney shall report to each of the governing bodies on its
moriftlo and conapliaqp5.�ities and the status of all exis abatement t ,
pn?enls, .......... . .
1
Annual Certificate of Compliance for
Tax Abatement Agreement ("the Agreement")
Between the City of Paris, Texas
And American SpiralWeld Pipe Company, LLC
Dated September___, 2018
THE STATE OF TEXAS
COUNTY OF LAMAR
INITIAL WHERE APPROPRIATE:
American SpiralWeld Pipe Company, LLC (the "Company") hereby certifies
that for the year
OR:
(1) All ad valorem taxes have been paid to City and all other taxing
entities.
(2) The Company has continuously operated the Property and
Improvements described in the Agreement as a spiral weld pipe
manufacturing plant.
(4) The Company submits herewith and attaches hereto copies of the
Employer Reference summary page of its Texas Workforce
Commission Quarterly Reports for each quarter of
(6) All other terms and conditions of this Agreement have been complied
with.
American SpiralWeld Pipe Company, LLC hereby certifies that the company is
not in compliance with its agreement with City of Paris for the year
Please Circle the number of the item(s) above in which you believe that the
Company has failed to comply and state in what way compliance with the term or
terms were not met. Attach additional pages if necessary.
Annual Certificate of Compliance
Page 2
VERIFICATION
STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned notary, on this day personally appeared
the affiant, a person whose identity is known to me. After I
administered an oath to affiant, affiant testified:
"My name is . I am capable of making this verification. I have read
the foregoing Annual Certificate of Compliance, and I further certify that the Employer
Reference Summary pages are true and correct copies of those reports filed with the Texas
Workforce Commission."
Signature of Company Representative
Position/Title
Sworn to and subscribed before me this the _ day of IT ITITITmmmmm__ 20_,
Notary Public, State of Texas
T
CERTIFICATE OF COMPLETION FOR THE YEAR 2019
AMERICAN SPIRALWELD PIPE COMPANY, LLC
STATE OF TEXAS }
COUNTY OF LAMAR }
CITY OF PARIS }
The City of Paris, Texas has executed and delivered a Tax Abatement Agreement
(the "Agreement") dated September . 2018, with AMERICAN SPIRALWELD PIPE
COMPANY, LLC, for certain improvements and other equipment (the "Improvements") to
be installed at the Company's property located in Paris, Lamar County, Texas, as described
in Exhibit A attached hereto, which property is located within an Enterprise Zone
established by the United States Census in 2010.
Based on information provided by Company and verified by the City, the City of
Paris herein verifies that the Improvements agreed to be built, installed and used in
accordance with said Agreement have in fact been completed as provided for in the
Agreement and that the Company has complied with all other terms of the Agreement.
NOW, THEREFORE, the City of Paris authorizes that the property described in
Exhibit A attached hereto shall receive a tax abatement during each year through the end
of the term the Tax Abatement Agreement of the taxes assessed upon the increased value of
the real and personal property of the Company located in Paris, Texas, over the value at
which the property was last appraised on January 1, 2018, which is the year in which the
Tax Abatement Agreement was executed, as recited in the Agreement. The term of the tax
abatement is seven (7) years, with the tax abatement beginning January 1, 2020, and
ending December 31, 2026. Said tax abatement shall be equal to the following:
Year 1 (beginning January 1, 2020)
100%
Year 2 (beginning January 1, 202 1)
100%
Year 3 (beginning January 1, 2022)
70%
Year 4 (beginning January 1, 2023)
70%
Year 5 (beginning January 1, 2024)
50%
Year 6 (beginning January 1, 2025)
25%
Year 7 (beginning January 1, 2026)
25%
APPROVED this day of _J
.
Mayor
32354874 v2
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
32354874 v2
CERTIFICATE OF COMPLETION FOR THE YEAR 2020
AMERICAN SPIRALWELD PIPE COMPANY, LLC
STATE OF TEXAS
COUNTY OF LAMAR
CITY OF PARIS
}
H
}
The City of Paris, Texas has executed and delivered a Tax Abatement Agreement
(the "Agreement") dated September , 2018, with AMERICAN SPIRALWELD PIPE
COMPANY, LLC, for certain improvements and other equipment (the "Improvements") to
be installed at the Company's property located in Paris, Lamar County, Texas, as described
in Exhibit A attached hereto, which property is located within an Enterprise Zone
established by the United States Census in 2010.
Based on information provided by Company and verified by the City, the City of
Paris herein verifies that the Improvements agreed to be built, installed and used in
accordance with said Agreement have in fact been completed as provided for in the
Agreement and that the Company has complied with all other terms of the Agreement.
NOW, THEREFORE, the City of Paris authorizes that the property described in
Exhibit A attached hereto shall receive a tax abatement during each year through the end
of the term the Tax Abatement Agreement of the taxes assessed upon the increased value of
the real and personal property of the Company located in Paris, Texas, over the value at
which the property was last appraised on January 1, 2018, which is the year in which the
Tax Abatement Agreement was executed, as recited in the Agreement. The tax abatement
shall continue for a duration of six years (6) years, ending December 31, 2026. Said tax
abatement shall be equal to the following:
Year 1 (begin .inn ianu ry 1 2020)
Year 2 (beginning January 1, 2021)
Year 3 (beginning January 1, 2022)
Year 4 (beginning January 1, 2023)
Year 5 (beginning January 1, 2024)
Year 6 (beginning January 1, 2025)
Year 7 (beginning January 1, 2026)
APPROVED this
32354876 v2
day of _ITITIT_
Mayor
a (NOT APPLICABLE)
100%
70%
70%
50%
25%
25%
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
32354675 v2
CERTIFICATE OF COMPLETION FOR THE YEAR 2021
AMERICAN SPIRALWELD PIPE COMPANY, LLC
STATE OF TEXAS }
COUNTY OF LAMAR }
CITY OF PARIS }
The City of Paris, Texas has executed and delivered a Tax Abatement Agreement
(the "Agreement") dated September 2018, with AMERICAN SPIRALWELD PIPE
COMPANY, LLC, for certain improvements and other equipment (the "Improvements") to
be installed at the Company's property located in Paris, Lamar County, Texas, as described
in Exhibit A attached hereto, which property is located within an Enterprise Zone
established by the United States Census in 2010.
Based on information provided by Company and verified by the City, the City of
Paris herein verifies that the Improvements agreed to be built, installed and used in
accordance with said Agreement have in fact been completed as provided for in the
Agreement and that the Company has complied with all other terms of the Agreement.
NOW, THEREFORE, the City of Paris authorizes that the property described in
Exhibit A attached hereto shall receive a tax abatement during each year through the end
of the term the Tax Abatement Agreement of the taxes assessed upon the increased value of
the real and personal property of the Company located in Paris, Texas, over the value at
which the property was last appraised on January 1, 2018, which is the year in which the
Tax Abatement Agreement was executed, as recited in the Agreement. The tax abatement
will continue for a duration of five years (5) years, with the tax abatement ending
December 31, 2026. Said tax abatement shall be equal to the following:
Year- r(beginning jams ~.•,', 20 0) 100g<a
(NOT APPLICABLE)
Year- 2 (beginning jams r -y 1,'1100%
(NOT APPLICABLE)
Year 3 (beginning January 1, 2022)
70%
Year 4 (beginning January 1, 2023)
70%
Year 5 (beginning January 1, 2024)
50%
Year 6 (beginning January 1, 2025)
25%
Year 7 (beginning January 1, 2026)
25%
APPROVED this day of
Mayor
32354883 v2
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
32354883 v2