21 - Resolution Terminating Paris Regional Medical Center Tax AbatementItem No. 21
TO: City Council
John Godwin, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Tax Abatement Agreement between the City of Paris and Paris Regional Medical
Center.
DATE: December 5, 2018
BACKGROUND: The city entered into a Tax Abatement Agreement with Paris Regional
Medical Center in 2012 under which PRMC was to make certain improvements to both their
Northward Bound campus and their South Campus. The terms of the Agreement required that
PRMC operate both campuses as acute care hospitals during the term of the Agreement. In
2017, PRMC closed the geriatric psychiatric unit at the South Campus, and in 2018 the company
operating the long-term acute care facility at the South Campus closed its facility, and PRMC
closed the hospital license for the South Campus. There is no acute care hospital in operation at
the South Campus at this time, and PRMC is thus in default under the Agreement.
STATUS OF ISSUE: On September 5, 2018, as provided by the Agreement, the city provided
PRMC with a notice of default giving PRMC 60 days to cure its breach of the Agreement.
Thereafter, PRMC filed a lawsuit requesting a temporary restraining order and injunction
prohibiting Council from terminating the Agreement and requesting a declaratory judgment that
PRMC is not in default under the Agreement. To date, the city has not been served with either
the lawsuit or a TRO. As the 60 day cure period expired in early November and PRMC did not
cure, Council may now consider terminating the Agreement. Should Council terminate the
Agreement, PRMC would owe the city all taxes that would have been owed but for the
Agreement along with penalties and interest as allowed by the Texas Tax Code. The attached
resolution would terminate the Agreement.
BUDGET: According to the Chief Appraiser of the Lamar County Appraisal District, taxes,
penalties and interest up through the 2018 tax year that would be due but for the Agreement run
to approximately $1,137,000.00.
RECOMMENDATION: Discuss and possibly approve the resolution terminating the Tax
Abatement Agreement between the city and PRMC.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
TERMINATING A TAX ABATEMENT AGREEMENT WITH ESSENT PRMC
L.P. d/b/a/ PARIS REGIONAL MEDICAL CENTER; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on October 8, 2012, by Resolution No. 2012-088, the City Council of the
City of Paris approved an agreement by and between the City of Paris, Texas and Essent
PRMC L.P. d/b/a Paris Regional Medical Center, a Limited Partnership ("PRMC") providing
for a commercial and industrial tax abatement for certain improvements; and
WHEREAS, said Tax Abatement Agreement ("Agreement"), a copy of which is
attached hereto as Exhibit A and incorporated by reference as if fully setout herein, was
executed by the parties on October 8, 2012; and
WHEREAS, said Agreement related to capital improvements to be made at both
PRMC's Northward Bound Campus and it's South Campus, located in the downtown area of
the City; and
WHEREAS, said Agreement contains a recital, to wit:
"WHEREAS, the contemplated use of the improvements located and to be placed
at the South Campus at a cost to the Owner [PRMC] of at least $100,000.00 will
enable the South Campus to continue to be used as an operational and viable
hospital and health care facility in the City of Paris, Lamar County, Texas, for its
residents and for others; and this is consistent with encouraging development of
said Enterprise Zone in which the South Campus is located in accordance with the
purposes for which it was created and is in compliance with the City's policy on tax
abatement incentives and the ordinance creating the Enterprise Zone adopted by
the City of Paris, Texas, and all applicable laws;"
[Emphasis added.]; and
WHEREAS, paragraph 5.1 of said Agreement provides, to wit:
"5.1 The Owner agrees and covenants that it will diligently and faithfully, in a
good and workmanlike manner, pursue the completion of the Improvements
described in Sections III and IV, above ... 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 Certificate of
Occupancy is issued or the Improvements are completed as agreed, until the
expiration of this AGREEMENT, continuously operate and maintain the real
properties and the Improvements thereon, including the specific units of new
property and equipment as identified herein, as acute care hospitals serving
persons seeing hospitalization services and care."
[Emphasis added.]; and
WHEREAS, paragraph 6.2 of said Agreement provides, to wit:
"6.2 The Owner agrees to retain sufficient employment levels to efficiently
operate and support its Northward Bound and South Campus hospitals during the
term of this Tax Abatement Agreement."
[Emphasis added.]; and
WHEREAS, consequently, continuous operation of the South Campus as an acute
care hospital is a material term of the Agreement; and
WHEREAS, PRMC closed the inpatient geriatric psychiatric unit at the South
Campus in 2017; and
WHEREAS, in May of 2018, the third -party company operating the long-term acute
care hospital on the South Campus announced its decision to no longer rent space from
PRMC, thereby ending all patient services at the South Campus; and
WHEREAS, PRMC has since closed its license to operate the South Campus as a
hospital; and
WHEREAS, accordingly, PRMC has committed a material breach of the Agreement,
including but not limited to Sections 5.1 and 6.2 and is in default thereof; and
WHEREAS, the City sent PRMC a Notice of Default on or about September 5, 2018
thus triggering the sixty (60) day cure period set forth in Section 7.1 of the Agreement; and
WHEREAS, said sixty (60) day cure period has elapsed, and PRMC has not come into
compliance with the terms of the Agreement;
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 pursuant to Section 7.1 of the Agreement, the City Council
hereby terminates said Agreement effective immediately.
Section 3. That as a consequence of termination of the Agreement, pursuant to
Section 7.1 thereof and in accordance with Texas Tax Code Sec. 312.205(a)(4), all taxes
which otherwise would have been paid to the City without the benefit of the abatement,
together with interest to be charged at the statutory rate for delinquent taxes as
determined by Section 33.01 of the said Tax Code, with all penalties allowed by law, shall
be recaptured and will become a debt due, owing, and paid to the City within sixty (60)
days of the expiration of the sixty (60) day cure period referred to herein, said cure period
having expired November 5, 2018.
DULY PASSED AND APPROVED this 10th day of December, 2018.
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
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Medical f. acting ii and through °..! ti authorized officer whose 'J1 appears
below (hereinafter referred to as "Owner").
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Project under the Act; designating a liaison fbr Overseeing Entequise
Projects d
communicating / interested parties; makit` other findings I f provisions :M 1 1f
subject; and declaring an effictive date; and
WHEREAS, the Enterprise Project described in the ORDINANCE and above, in
this Agreement (hereinafter called the "Northward Bound Project'), qualified as an
EntmIniseZone Project 1 verbal l F4 I7 11 1 1 -F 1 f 1 ICtheOffice 1: theCiovernor1 the
State 1(EconomicDevelopment&Tourism), made p,the City1 Paris,Texas,1 1:
to the Owner,( 1 1 Enterprise Pr*ct covered the realproperty ann
improvements 1 Paris, County, described 1 E 1 1attwhed hereto 1 C.. 1^
made
.: part hereof,as is shownin theCensusBureau 1; on i..attached
hereto and made part 'r hereof ' A ! purposes; and
WHEREAS, [ 1 ai' the TexasEnterprise Zone (TexasGovernment Code
Chapter1 the designation 1 anarea :, 1Enterprise A[:alsoconstitutesdesignation
of the area as a
reinvestment zone ! "Reinvestment and the Cityof Paris,
ordained in Section 8 of the ORDINANCE that the Enterprise Zone areas within the city
1 whichthis Project
4 located) areReinvestment # I e under the provisionsof the Texas
Tax Code, Chapter and
f f,,.
WHEREAS, the City Council of the City of Paris. did heretofore, on the 13' day of
tin Resolution No. 2012-072, pass andadoptappropriateGuidelines :s 1 f-.
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upon !L;--�-
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Ikcdve daft t& ft AGRFEhMT being the cffwthv date Of &0 ORDMWD;ANM NCE
Augu9t 22, 2011, when the tax abatement bevein descnlzd was suflwdzed by the City
Pa* Tolm; I
I : ( M all=
IITITIMI 4 1=41 IMMIPJ �41
M
1.1 nw term of ftAvc=ent " re4161 onthe 22!4 &y of August 2011, with
-nin ir i 1ri1 M, fri, tw-lb-Imr 1 r -1I -in Jamury
1. 2013. and
IL
The "Property" - Area to be huproved
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3.1 TU OwnWs Northward Bound pmperty oonsha of land, buffifings, anI
- M ,
IhOvmn 1he 1w11p aukhad havio as MAN" and madc a part hamf 71M
shan make ft ImMvements VwAmUy dmibed m said &b
jo m 14' amount
$27,100,000.00.
IV.
The South Campus Improvements spun which Tnu are to be Abated
M -, 4M., 1 trio 74774r.TT
To
5.1 Tbe Owwm agnm and covmnts dmt it will diligmfly md 1; Mf in
ir"mwl*H .10 41
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6.2 Un Owner algrms to Main sufficignt mPlOYment 19veh 10 efficieUdY
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md ffic Propmy Tax Code of ft Stift of To=, sha be :c% .d 1 wfll becom
p
MUM 7-IM73111,77, =7,
Mll T—T=I, Apt
be cuffied. The Parties wkwwkdr dW aftW dmftu in ft CVMA of defildt md
t:amin8fien would be up=ULIWW md &McLdt to deftmlbm
9.1 SuWed to ft t=s and conditions of it AGREMWENT, and mAded ,
the rights and holdus of ow oubtanding bands of &a City, a pmlion of ad vad
proputy am fn= *o Pwputy othemse owed to *e City sWI be abgftd. S
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621—YUML=17M.M.M. �Tl �R?TWi=a
of tcn (10) ycom beginning Jamury 1, 2013.
8.2 The abacuml Vmftd hmdu doU bc suWaa to and govemd by tahm ow*
Tr—
is 1.7 f r r1 -
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Copy of the printout An the I.=iICounty AWm&aI District showing the
AI arket value of ewh Al and the impummuts *ereon pmr to
ft Construction of 1he Improymnen";
61 a 7,77- 777. 2
(c.) Copy of or identification. of plaris and specifications of constructed
jrrqxov=n=u and the location of the zmne for hopection by City's
emocationumn;
Date of rabst"fid completion of f as deflud in paragraph
3.1 hemof
12.2 u owm fwther agrem tat it will provide City h an annual, amm
mport which &a ca*, in writing, *0 i in complizf-�' with Mh APPlicablO telm Of
tbb AGREEMENT. Such annoal report Amll be finnished In smh form 88 ft CIV
raq
12.3 In addition to the annual rCpW required mdcr Swtion 12.2 hamt
Emuloym Reference
Wll
4i i
This AGREEMENT w" authmized by rmlution of the CKY Council at its
repWy Whe"ed nmdng an he e dgy of October, 2012, m9wrizing the Iftor to
execute &e AGREEMENT on 1ehalf 1f the City.
13.2 This AGREEMENT was entered into by Owner punuent to the audiority
granted to the authorized official whose signetwe appears below.
lit-�,A-10j 1 2:1 tot IM VIM o =MINI SCMITIVI, 7J C -s
14.1 No officer, official or agent of the City has the povver to amend, moIfs & or
alter dis AGREEMENT or waive any of its conditions or to bind &e City by making Noy
promise or representation mot contained herein.
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City
city Mona
City of Paris
P.O. Box 9037
city 4l ti
City of Pauh Timm
FIA Box 9037
14.4 if any term or provision of this AGREEMENT sball be declared
unoonWtutirel al or void by any court of ompdant jwisdicdon. *e amMitudonality and
validity of ffie remainder of mid AGREEhMU shall not be affwted dweby, and to this end
Ir tmW and povisions of mid AGREEMENT an declared to be severablc
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proow or A
owner, and their respective successors, and permitted assigos, if any.
14.6 Venue fbT any sefions arising under this AGREEMENT shall lie exclusivdy in
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WITNESS our hands this e day of October, 2012, but this AGREEMENT io
zffective from and after August 22, 2011, as first authorized by the ORDINANCE.
Ellis, City Clerk
ATTEST ;��""
ONJ
Lin
CITY PAINS. TEXAS
Fim"
KentMeflyar, Cityx6orney
ESSENT PRMC, L.P.
("/a pariis�,gional MediW Center)
By -
President
A-- Legal description f Northward i 1 f 1 real estate.
Enterprise Zone 'f [ IC. Northward t 1 (,d.1Project4, located.
4. ,.
description f SouthCampus estate.
D Enterprise Zone 11 which South Cmpus
and I If '.}: showing I 'I f of Northward Bound izaprovements on
whichtaxes areF be abated under this Agreement.
i
are
to be A.: ? 1under this m1
✓ 1 " Of Completion.
R = Tax rolls of properties of Owner as of September 30, 2010,
1 = City of Paris, Texas Guidelines and Criteria for Tax Abatement&
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ay
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367
34.820%
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257
22.946%
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City of Paris, Block 110, Lot 5, ani
V2-Ln!i 11 If 1 s if -� f 1 ll Sdi it
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f-l"at-tFindex Cl�
820 Clartsvffle St, Paris, TX IS460
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1. Q-rsus Tract 10. Lamar County. Texas
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32.66DIC
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42.964%
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fLaw;ir �1
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812 305
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29.358%
Lamar
f
1
886 203
-4
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. 1 L2.-.
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iliO
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MIT1 1;
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F 1 1 h
a. Renovate Adndtting, Financial Counselors Area
b. Renovate Main Lobby Wafting
c. Creme a Pre Admit Testing Area for Patients
d. Relocate the Cardio Diagnostic Arm to the First Floor
c. Relocate Outpatient PT/OT Speech Area to the First Floor
f Mocate, Imaging to the First Floor
g. Creme an Emeslency Miage and Fast Track Ex= Area
h. Provide Connector 1111 WomeWs Lobby to Main Hospital
i. Provide a New Surgery, PACU, Prep/Holding Unit
j. Renovate Cenval Sterile Supply Area
k. Renovate for CCU Waiting and Support Spaces
L Renovate Pharmacy and Provide an IV 797 Room
m. Renovate Vacarit Patient Rom Floor Finishes
n. Gmimd breaking cm=ony held on August 4, 2011.
a. Renovate Area for New CVICU Unit.
b. Provide Now Oversized Patient Elevator.
c. Renovate Kitchen and Dining Area.
d, Provide Physician Laungg/Dictation/Chart.
e. Relocate Endo Sufte to New Tower,
f Renovate Patient Rom Floor Finishes.
g. Relocate Acbministration Suite.
h. Provide New Nurse Call SyMn.
i. Provide New Code Blue System.
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1) Renovations to South Campus:
a. Endoscopy1;. movedfrom the 1 floor1 the newly renovated t.. floor.
♦ Endoscopy waiting:. has been mmodeled.
r11- has 1!'1 cf o the South Campus.
/ Construction is completeon fi'.floor{Iaccommodate the relocation of
GaOPSYdL
41 fr, "I :i/ 1 1 A 1 !> %!11 • i_ a ""J 4 / li a �
Qjjf 1.r: M1 i'. 14 ; 1 1 I . .11
$ / TIP
1 ° 1
�1 I
-nie City ofPans, Tam,bas indwied the Pmpedy desmibed in &hgztA .al Wlied hemomto two
installed at the P. t1' two hospiW facWties located in Pwis, Lmm County, Texas.
ESSENTPRMC, L. P.,hasomnplieduiffi 11 Ir" temns ofthe Tax Abawnent Agmm=t, mmd
�--f M&TIEI�
been compleW as provided for in the Tax Abatement Agreement.
NOW TBEREFORF, the City afPans authowes th9ft Propmty descnbed mExbbit A allacbed
WOO
JWce
is, City Clerk
U-701 # * r #MIITM
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yv
issto
C LP
a2O ClarksWe SL
Real
167,470M
LDI Or, Pail of Red FbW 0*
[lion
Emnt PRMC LP
820 Cbftvple SL
PilsiPmww
# 587,150.Oi
aim* 110. LOW
HDIPRIM
bwwAmnla
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Eesti PRMG LP
820 Ciatvple tit
Real Properly
5 7151 1OO.OD
cny of PadL Bkmk 11
d
' 114i9B8
Eemm PRMC LP
886 DeShotrq Dr.
Rani Properly
8 2A80,84D.00
CRY of ®
lffpvvumb
Lot 1
7
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N0000 ���
EwmW
886 Dr.
$ 11,i1B4,00i.O0
bkxk308Lot1LP 0
H"ft1
Bill, Aft, MI
-Thc City offtis, Texas (hmiu called the "CW) is committed to 0*0cing the
compatitiveness and the axPAwi0n Pofimfisl Of the City% manuhicturing industry; to attracting and
encouraging new manufacturing ind" and inveistment; to finproving dw City and its
infia;tructure Wbich aftrub and Supports dovftment, and, to expanding the tn b&..v
employment opportunities, and the overall NUWjtn of HW%%ey
sive consideTation. on a mwby-caa basis, to providing tax abatement aw4n1ing to ghk law to
the ownen of real property for projwu which stimulate economic growth and dk=jfic&jon in
the, Cll)�
Tax abatement beneft may be made aWable to industrial, minufActaft. distributicm,
anI service facties cwrm* in the City of locating fn the City if locateddeWpated
Enterprise Zone or Reinvestment Zone, New fimilities and structures as well as the &4=skm
and modem btation OfOxisling fROJINes and structum. will be considenA. Evaluation of a tax
abatemeM requW will be based on the information provided in he tax abwaent application.
However, the City is under no obligation to provide tax abatement to any applicarg,
IL Definitions
a) "Abatiii/ Ot" 01"1demcrit" met= -tax dat.AA ent". which is tk full orpartlal
exemption from ad valorem taxes of cejwn real and tangible personal pqwty in a
Reinvesftmt Zone designated for economic development purposes.
V'4 "Agreement" meang 6e written agreement for tax abatement between a property
owner and/or lessm and the City,
c) "AuthoTizcd Padlity". A faeffity may be eligible for abatement if it is a
Manuftoftwing. Facty, a RueardFacift
_C'miTr,
I I I I
4A 411 q
UP or 00" IMM year to Year as Pet Mnftons by the
LaMar C1unty Ajy,,.*wsal District.
C) *Employer" means the owner or lessee of Property who provides Jobs within the
Reinvtonent. Zone or within the Enterprise zone, appift for tax abatement.
0 TAUMist Zwea means an am of land dedjulcd as such under CNqtw 2303 of
theTexasGovegnment Code.
"Jobs" 11 Job"as used butin mem [. PositimOffull-time
11 w' A ! 11 .'1 for In
-mosition the 1ndivi&W
is provided
benaftam O&
1 1 Employer, A+1asAuhb 17 n',.vacation
time 1 some11 % I .*mebantftJob not position s f filled for
the Employer
worka or employee 4 f: employment Macorservice. "Jobs" 1herein ineludes'pull-
time
Jobs", as dermil below.
h) Tulkbe Bqulvalent Jobs" means a number of part4knejobp where the hours worked
\• 1. .T 1/ hours per
1i Employer 7:1added
week .I I 1
I :IY
together. For example, sixteen (16) partAWA jobs made available by one Employer WhM all
such f. `:.1 I 11,
added 1 + .1 1 I total obours1 work per w.' I: 1
such
{; 1
job r+I II 32 hoursY YI or more/1equalill1
,Equivalent Job(352 s I: 1 divided 1 / equFullal Equivalent 'Y per
bs
do not +"
employee A receivebenefits from 1Employer.
,ManufiLcturing buildings, 1 sbuctures,.., 1
achbiary
{ 1` 1 11e. A I' 1Y:.will bethe •11 1 - A tangiblegoods 11 widerials
or
the
prmcssing Of such goods or materials by physical or chemical change, Facilldts
primarily engaged in ar
,semblin' component parts 'Amanufacturedproducts\considwed,
manufacturing
'Modernization" 1 1upgrading1existingfacilities which
ipormes
the productive Inputor output. I M ! 1' Of
t. /.Ij l Y ]Owen
,w I
unit cost '.•' Mod0MiZ81IDDmay result
from
the constractiMalftmft 1'.n...
I f s :1 1 I'.. of Y I
stnicues, fixed machliterY11 ./ 1' 1' 1l shall1 1 II 1
pur.pose of roccaMoniM refurbishing, "i 1 1 or W maintenance.
k) nother Basic Industry" means bWldhW wA sMX&M, hich1ding fixed "MchirsaY Bad
equipment, not elsewhere ! 1 1 t1 1used t.. production 1 products 1!
services which Muft in the creation ofnew Jobs 1 1 bring new wealth into the
�, /.a'. 1 +: 1 ! 1 n r 4 11 tools,
'. ( 11 ' or
1 f .t 1,
applicable law for / wlw which can1 rll;1 l from an authorized
n) "Rai PropeW means the land within am Enkrow Zone or a RrAvestment Zone,
jagetbor vdth all improveyncra and fixUm constructed or otherwise situated thmm.
q) '!Regional Distribution Facility" means bungs and strucftuix� including &M
mwbinvy and equipment, used or to be used primarily to receive, Store, service, or distribute
7-3) 1 =F] 57*T5
p) "Regional Tourist Entertainment Facility"mems buildinp and structures, including
fixed machinvy and equipment, used or to be used in providing armismmtkntertainment
through Ow admission of the general public where the majority of ums reside at lead ] 00 miles
ftm the, LIty and whem the majceity of us= we ftely to stay In the City for more than out day
and will therefore likely utilize local restmrants; and hottYmoft] accomodeflow.
q) "Reinvestment Zone" is an area what the City or County has decided to influeuce
uea through ft use of tax abatement fbr speced improvements.
r) I%esearch Facility" means buildings and structures, including fted Inwhinery and
equipment, used or lo be used primm* fbr research or aWimentation to improve or develop
new tangible goods or mataials or to improve oT develop the productionc 4thorew
pro c & =
s) "Tax Abatement Committee memo the committee of persons desiJI. ted from time
to time by the Pari's Emomic: Development CorpondiIII to sUdy, review and recommwd twc
abatement to the applicable toring enes in the community, 7he Twt Abatement Comynktoc
will be composed of cm pe;= from eta ofibc City (the City M=W or designeeX the
County of Law (the Courtly Judge or desipce� Paris Junior College (ft Presidew or
designee), the Chief Appraiser of the lAnm County Appraisal MvWct, anid the Executive
Dhaor of the Paris Economic Development Corporation.
m, Dcsipation of a Reinvesbant Zen&
The City or County may designate an arva as a Reinvestment Zone, in acCordance with
the criteria and procedurW requirements set Ant in the Property RzdcycloWeat & Tax
Abatement Act, as amended (Tun Tax Code Soo. 312.401 (b)).
For my am whMn thejurisdiction of the City to be eflipble Ir "A tax aMement it mug
meet the critzie for dw4nation as a tax abstment Reinvestment Zone as set forth In the
Property Redevelopment and Tax Abatement Act, Tom Tax Code Chapter 312.
The City,
through Council,may 1viliftwith theowner 1 1: *ter,. '.1
tanble Real Property/ M,:' 1 1 IA Zone, 1 not 1 11 •11 1 e.': e1':
f nM ,h -/ Ytax Increment 11 1 / to p f f I taxation in. portion of the value1 `: 1
Pjal Property,
I...t.I 1' ofPersonalPro"located an the Real Property,or both.
abatement granted aunder'Ir'agreementl exceedthe termauthorized by I
r
agreementwill be based on 11 R if { the owneror 1': Property
specific /r repairs Tthe Property. A 'J .rm.I ►m provide for theti a f! 1 1
ofthe Real !
pmty in each year covered by the aSrmuW only to the extent its value for that
year exceedsAnaucement may provide 1..:. exemption4 personal
PrVerty : • n 1 1on the Rol Property inend yearcovered bythe agreement Cr than ♦ 11
Property
'1 1 that waslocated eI 1 1RealProperty at anythebefore the period co"Wed
by the
agreement, Inventory or supplies canot be abated as PenmW Property.
Tax abatement may only be granted for additional value of eligible Property
improvements 1and specified A an •.1;K 1.1ragreement betw= the City AtA
the /11 n ownerorlessee subject tosuchI f, f.las the
City may require. 71m
additional
value must exceed 1reduction 1he fair market vAlueof other pro"of theowneralready
1'. tax roleith ^1 HI 1 the City.ChangeY:appraised value does , r 7r:'
abatement wl in an instance whenMey-iouslN vacantAuthorized Facil
er
added to the tax rolls,'; come 1 r Rcapital.! 7m:;!
The negotiation of tax abatement contracts will be conducted by the Paris Economic
Development Corporation, in 00nJunction with the City MwuW or designee to the TaX
Abatment Committee. In determining wbac and how tax abatement, will be utilized, the Tax
Abatement. /vl l ill - potential remm,on thepublics{ nl i Return 1; 1;`;
public investment will be measured I 1w IR:= 1 Jobs Mto Jobs rt a 1' Y.
ses of
existingEmployers 1 1".the City,and broadening LI ll ! : the taxbase, and expansionof the
economic !•
property owner and/or shall Ialigiblo fortax abatementonly ,!:1 the
following terms and conditions:
b) If the Property Involved is a Historic Property. in the City Historic Districts them an
1 «♦ NLR-Ur r r --76
r I 7LX -z-ow.
1 11 fI'
distdcts am allowedatFI`, forKIyears with a minimumI w 11.r of 0 for
and 10.000 2-r commerci
.. 1 �: 1 � ♦ I I IIF+ ♦ 1 v 1: l y -�: 1 1{. rs.., F F `::: .+ .I r 7 1
r `r
c) if that will be the creation of now value, Abatements may only be grarited for the
additional v&lue of eligible Real and Pasonal Pmperty improvements, subjew to such
limitations as the City may requim Real Property tax abatement may be granted only to the
ommt that its value for each you of the agreement exceeds its value for the year in which the
Agimnot is executed.
IF!'1 1 11 0141 ! l .1, at it .11 • ' 1 i .#
Eligible Property. 1 If" i .+ be a .f 1 .i tothe vWueof
buildings,
/ i1 i' structuM
fixed mwJAwy andequipmeM site improvements, fg . penonalproperty, and ( office
space.:.. 1related fixed impivaments necemq to the opmation a. f 111 , 1 :I Ioof
AwborizedFacift provided,howem.that inventory orsupplies ll 1.1 be t for
abatement. Eligible property for which abatement maybe granted includes nonresidential real
� Lemed Authorized Facilities. If a lcmd Authorized Facility is gmted aWament;
agreement be i1 1The lemor and/or 1 • of i 1upon:particular
circumstances 1 proposed 1 i 1 the lessor�1' f' shall
e ♦Vn 1 :f binding 1with 11guarwiteecompliance
nreement.
g) Value and Term of Abatement. Tle City willdmide whether to Smut tax abatemnt
to 1 :I/ ! M: 1 it amount of 1 abatemaKA:4 case-by-onse basis and 1;
agreementaccordance with thwe Criteria and Guidelines. 71e term of aWemat Wwftd under any
1 4 permitted byapplicableamount
:i ti1''... 1'.. 1; 1 ;ir•i [•' r� ( I1 !{�' 1 11 t t11 fl ;s ! 1„11y
within the Authurized Facility, Abatement may only be granted for ft additional value of
r1i
J! property.../f1 ovemogs medr, pursuant toandlined 1 agreementbetw= the City
and property owner and/or lerm s*ject to such limitations as the City may requhe. Ifa
modemizaticiiproject includes:1 ..e J 1 improverrimbwithinan Authoriwd is
uniXs). ne, crWa that will be used in evaluating a paWcular application for Wwwmerit will
Inclukbut f' be limited to.
1) 7'be dollar amount of the inur=e in the tax roll for the proposed project;
FAR 71 -TIM TIT -71W. 1. 7. , nl ,11 1 1:
I..,. i�tr us�f•_./� r` .1..1.:1-• ,, /.!
I f ! i=i4- 1 Iji
5) ne PmPAi" prcjeds effect on flw snfivly, health, And morals ofte Chys
residents;
6) Whether the proposed projea will have any substantial long-term adverse effect
on the provision of City services or its tax bast;
7) WheMerik project meets all relavantuaflng requirements;
8) Whether the projed is consistent with tk comprehenisive plan ofte City or
Caurity of Lamar, and
9) The types and cost Of Public improvanents and services (water and sewer main
extensions, streets and roads, etc.) required of the City nd the types and values of
public improvements to be furnished by the applicant.
h) Economic Qualification. In ordcrto beebit to =4vt tax abatement, the
planned improvements.,
1) Must be reasonably expected to inomr, the appraised value of the property;
2) Must be expected to pmvent the loss ofemployment or the reterWon or
ereation of Jobs in the City during the term of the agreement;
3) Should not be cxp=W to solely oy primarily have the cffect ofmcrely
transfMing existing emplopmen;t Ban one part of the Citylo anodw
without demonstration of kaustd f6ture Investawd (DoUars or Jobs) or
munuil circmistences whereby without mh a move employment. is likely to
be reduced;
4) Mum be neoessmy bemuse capacky cannot be provided efficiently uhlbing
existing improved Property when reasonable allowance is ma& necessary
improvements or mlevant govanumtel actions.
Tr'-2am—m WAS
1) Ile Bast Yew of eligible pr%wV as determined each yea by the Lamar
County Appraisal District sWI be fidly taxable, and
2) IIe additional value of e4ble property above the Bue Year Value ghall be
taxable in t1e manner (lescribed I agreement.
. . . . . . . . . . 1:'. . . . . . .
FMPIoycr, lot eA:J.LL "'Ij UMI
the mw wiffi such inibrmalion a my I to &*Miw the MUM9 Of any
abMeine
once such value has bwn egablislied, it Chief APPWWZ $hall nOdfY the affecW
soclions whieb levy taxes on surh Property and the, Pods Econ=ic Developmem
Corporation.
The Employer. owner or lessee oftfigible Property requesting tax abatumt witbin a
Rckvgftcnt Une shall, prior to the; coriimencerrient of eligible property impmements, agree
erw7 obs,
to expend a 64griated sum ofmOM7 and to create OF ietain a c m number of) of annual
payroll as forther defined below.
V. Tax Abstewtat for Real Property; Creation of Jobr.
Tox abgtonem may be made available to Employan creating Jobs with respect to an
AutbMized. yuflky located anywhere wn the CRY Or its extra kmiWl] jurisdiction based
on the followinr-
a) To be eligible for any ux abatement, 0= must be a roininum caphal Inveftelit In Ole
Audxffbctd Facility of $250,000 and at lead tan (10) new Jobs added to the EmployeA labor
form b) I When an abatment percentage has ben agreed upon it sMIT be granted for yams
one (1) tbmugh thi= (3); dMader, d9ft will be a 20% reduction in the original amount aboad
bc&mipg with year fbUr (4) and a simMer reduaicin of20% in each of the nt7A OM yeBrs until
100% of the Real PropertY valuation is added to the tax rolls'
d) Any project with a capital inVestMeni Of MOM thAn ten WUiOD dollars ($10,000,00%
i.ollaftwo d -h million dollars
,f,u an out alf
(SZ500,0()O). or creating more than two hundred twatqflve (225) Jobs will be individually
negotiated. No abatement will be granted for more than specifted in state law.
Zan an
lfz=MycrakdbuskessbIocaWorwiUlocalewW&DO
additional 10 to 20% abatement may be available as Wividually nagafiat4 with total
abateowd DOt to exceed IOOSL
VI. Tax Abatement for Persolial PrGPcrtY; Craflon of Jobs:
The City tccognizes a significant difference in the valuation of real property and
PCOMW propegy. Beause of dtpedation schedules, ofto the abatement Of PMSO1W PrOPertY is
versu MW
this the abatement schedule for Permnal FqrAY s
pmperty is sjgWfi=tly diftent. If pvrmal propwy should became obsolete and be replaced
while under an abilii =t '.1 ...1 the Tepigmnea, penonal pnVerty is not ebJe for
abatenvent
a) To be eli1pble for any tax abatement on PermW Propaity, there must be a minimum
capital lovestma of S250,000 in Personal Ptopcdy and id )east ten 0 0) n6w Jobs added to the
Employer's labor force.
b) When an abatonent percentage has been agreed upon it shall be granted for yexs
one (1) through three (3y, thereafter, there vAll be a 20% reduction in the MOW amcAmt AbaW
ars Wr
boginning with year four (4) and a similar reduction of 20% in each of the n0d three A 11
IWA of he pad property valuation is added to the, tax FOUL
MW
ff.. MmAk*&
.77pr
hAlfiniffin 00 ;
will be inodividually nc,01219d. NO abgment will be granted for more than Spec' k--fttr-
law.
createde) If a newly businesso .I wY. f, Mll locate within an Enuq)dse Zone,
additional 10 to 20% abatement may be available as individually negotiated, with toml
abatement not'i1 exceed 11
The City recopizes the valueof .Y* Employers `• the well-beingof the
community 1 1 desires1emoDurageEmplwym to remain the and 1 improve
1
theft respwft businesses and industries, as well as thtirprofitability. Accordinglyj ifan
existing 1 • 1'•..i(asopposed toa newly craged business or industry into 1
owns{..:.kases1 f I 1Facilityandhasplans toimproveu t Propiertyby 1' 11 1 1
ng
1 ! 1 r l ''. f 1 1♦ 1 1 11 i l 1
Facility which qualify for tax Iq:! r 1 under these Oitcria and Guidelines,1 Employ..
may be cligibic %1, abatement with mspeaX:such11: 1 ! r! t'rl 1 : to its propety or its
Newly Created Minimum Annual Payroll aro cremed. to these cases Involving existing
Employw, the criteria fbr tax abateirient for Improvements to Real Property at Authorized
Facilities are Identical to tW set forth in Article V above (except that no new Jobs or Newly
CreatedMUmurnAnnual!ll are required);and the criterfe•1tax abatement for new
Payrollpersonal Property added to AuthorizW Facilities am Idenficial to that set forth in Article VI
Above (except that no new Jobs or Newly Cmted Minimum Annud Payroll are required). in
this rel;W, however. the City encourago misting Employers to Wain as many Jobs and as
much axisting Annual as is WAMomicallyfor theexistingEmployerto doand
remain /industry.
Eligibility. prescril or potential owner 1 taicable property :,.
copy 1the sidd application t1•' Itirwarded by the applicant to the Executive i I s 1 of the
Pads Emomic Deytiopmew 1:'. If Id".
1 Form. le application consistWi Ia complaWappliration form :.. r 1 1 1. ,..
td by
the i1 {
descripdon9 improveirm to be 1 e' , d 1 a 1 rlwith the
2) A detailed descriptive list of the improvements for which abatement is
rq+....:
3) A list of1he kind, number, and location of all proposed Improvements ofths
Property;
:d ofthe numberandWeA JobsOMMAincludinginkirmation
pertaining1anticipatedjob transfers;
metes and boundsdescriWonandplatl proposed .R `.. rtnj 1ne ,
skiws all4: 4 1 1 d21A.4 Am 1 �snj
land ums Wift 209 feet of the Reinvestment Zone;
6time schedulefor undert"gandcompletingthe proposed
♦. 4 -fl M::..
7) 7be type and value of any economic development fficenfivC8 mquested; and
9) Any 'illlinformation about proposed 17 1: .a be required by the City or
as / KI1 desirable 1
• / ( • I: !' 1 • / 11 { 1 1'.11 i ♦ ♦ ::
I:
and cornment. In addition, no tax abatement application shall be considered for forta
processingby govermnentalenfities unlessfirst approved 1 1 governing R+4: 1 of the
mifis
Economic Development 4.. f / :11 !I
1Publicicomply certainpublic notim ad hearings
1 1as mandated / Y under Property 1 I '1 •ff :4 Abatement
(: 1: / '1 •.I.Y R i 1 d ': / ".,1 * V . U 4 r F, f +1 !/ r
! ! • ♦ r :.1 r t :, '.II - 11 � r.r ! - .il � .I t .�' /l SII ♦ / !. '..! /
EM ♦ lyrl
I f l 1, / orderto
enter
intoan Agreementmust I s 1thatTh terms oI I
r.
proposedagreemently theseith r.. ! ACriteria, thatbe no
} '.1 ' R. . —rf-
sm feasibleandpracdcalandwouldbe a*+^A 1it . the Al to included 1e Iteinveshmg
}. 1. and tothe City after theexpiration ofthe agreement.
Q Viriances. Requests for variance fiam the provisions of Owe Guidelines may be
mae in wrWng to the City, providied, however, that in no varA "I the term of any
1 � ; •♦ Y.., s.. A 1 1 ;! 1 11 !: /+fl ! r ! 1;i t: 1 -.M !
variance shall require the affirmative. vote of dvvefburffis (3/4) of the manbersof the City
council.
IY
After WMMVW, the City shall formally pm an order or ftsolution and authorize the
},.
f an agmment with theowner andlor lessee1(the AuthorizedFacility which
include, but not be limited to the following tems:
a) Th@BwYeNrValue.
b) permt of increased value to be abated each year;
commencement dale andthe terngustiondate of f1 d i
of investment AnumberR i/ R!1, 1
f the
1Amount
a.... n
1 popfsFA k 1 1 fl rl R } iiNb{ t !MI 1 Mt +1 '.
plat property description, I improvement:: provided in application;
listing
of the kind, number. location,
'M: 1 1 f 1 ll proposedimprovementsi.
fthe
f a
S) A statement IiMWAA the uses Of ftPrOPOrtyconssmatwith the general PuUmeof
'.e 1..development
R ♦ll or TWevelopmentof1he ReinvestmentZonedMnjj the1 M 1 A.
that property tax abatement is in efibet.
h) Thm W,,ms to ihe project is provided to allow for the inspection by City inspectors
and OjEtials in order to ensure that the imprOvOMWU Or rePaits ate mb& aM*T&g to
the specifications and conditions ofthe agreement;
.I paperty tarevenuelost as a resultofthe taxabatement <.1 l l`.
t will be
recaptured
41.1 r l' by the City ifthc owner / L - property fails 1 make the improvementsor
.p1 as provided / 11 r
j) EaGb tam agreed A by owner 1 f 1 f e
/ M that the owner f the Property shall M' .1 ll 3 1 to
1' that
Ik RWW is I t R• i A Ve eack applicable ✓ 1 Of
•.l 11
Contractualobligations inthe event of deftviolation • 1:. I! 1 , Is.
1 11 1 .IA :, A:
. A I 1 1 .I 11 : andassignmerg, or other ! A o1 1:I'.
may be required by state law, or in the disaction of te City Council,- and
M) That the City may cancel or modify 115agreement
Property
1 1} owner fails 7
X. r;
If the City 1 I f _ 1hat ! 1 M: 7 or entity 1abatement
according 1 the terms and conditions1itsagmernent,the city shall • #':thecompany
individual in writing at the address stated in the agreement, and if such deftit is not cured within
reasonable specifiedin such noticeI` 1 ti 1RthenThe aV=nentbe modified
or 1 1 1withoutfurther / n the event the companyor individual allows1:.
J !'RY♦ 111 'i'1w 1i. AIS# 1 1 if f1
agreement and falls to cum during the Cure Period, the agreement then may be modified or
terminated ; fwithoutnotice,I 11*: agmenitntprovWt aI; 1. 11: recapture 1
or pan of the taxes abated.any timebefore expiration, :I .1 abatement - J aro a
be Wininsted by mutual consent of all parties involved in the some marmw that the agreement
wu rl
XL ConfideaWty ofProprietaryit I I.: f++':
Information ffid is provided to a taxing unit in connection with an : 1' t 1 :,,1 1 1,s..
ta dwervient under then Guidelines
acovIies to be conducted or the equipmad or other pmperty to be loca1W on the •f .1 1
which tax abaterneal is sougbi is confidential and not subject to public disclosure until the
agreement is executed. Such inibrmation, in the custody of the City aftr the agreement is
,itecutedis not confidential/ .I
Proposed I I 1 I be deeldedan I Individual
The adoption {these Guidelina by the Citydoes I limit ! 1 "'kl 1. {IL ofthe City
C-Tuxcil1 ! r 1 ,. 1Aar tr iff { sp2-WaficA, f ": 1 i ll 'z +.' R I�Mit 11 1 'A1 f I
oftheCouncil City delegate, o employeesthe authority tdetermine or not 11
City should coraider at :1'yr application1. request {' tax abaftnen%Orem any property,
co,nuart, or other legal rightin any person or enthy1 the City Council consider +r 1 grant
specified application or request for tax abatement.
•MMli. [ I.i "...
The agr=ment shall stipulate that employees andl or das4wited represcritativesofthe City
will have m 11'the ftinvestment4during 11 1I:. ♦theagreement1 11 1w 11
AuthorizedFadfily1 deternflne1 lt1 conditions1 I agreementbeing met. AM
and wHI only be conducted in such a manner as to not unressmbly interhm With the
construction and/w 1/ .± : t 1 1 f..Authorized inspections made !:. one
Tr ME• II ,.R of Ae Or—a7elyor 1 • ♦O M! ix qacxV-f-n--)A ;--0,
Uponcompletion F. construction,shallCityannually '1'1 1 • R
IsII -FM' =,-
•IL 1/ 1 / H /: 1 1
mal rl � 1 I:1 •1 t 1 1 ;. 1 1.•, -.
1'. 1 !
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1 ' � : ':'! .1.•,1 w :1, 1:1 / .-1 ;11 / 1 : 1 f 1 �.: ' ...Y � " l ' .�:�, f ):
1.11 lrf �1 .s P1 v:. 1#74♦ =V[= Il fi l /`. ;ftlwl
414
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