15 - Agreement to terminate a tax abatement with T& K Machine, Inc. (Aequs Aero Machine, Inc)Item No. 15
TO: City Council
Gene Anderson, Interim City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Document terminating 2012 Tax Abatement Agreement with T & K Machine, Inc.,
now known as Aequs Aero Machine, Inc.
DATE: December 2, 2019
BACKGROUND: On October 14th, Council directed me to prepare documents to terminate the
November 12, 2012 Tax Abatement Agreement with T & K Machine, which has been succeeded
in interest by Aequs Aero Machine. As you will recall, due to market conditions and an
acquisition of T & K Machine by Aequs, the company was unable to meet its obligations under
the agreement. Aequs has agreed to the termination of the abatement agreement, which is due to
expire on December 31, 2019, and in order to assist the company with its financial situation, the
City has agreed to suspend making a demand for taxes abated under the terms of the agreement
until after April 1, 2020. Because T & K/Aequs made only a small portion of the required
improvements, taxes actually abated under the agreement were less than $9,000.00.
STATUS OF ISSUE: Council will need to approve a resolution authorizing the mayor to sign the
attached agreement to terminate the tax abatement agreement with T & K/Aequs.
BUDGET: In 2020, Aequs will repay the City the taxes abated under the tax abatement
agreement in the sum of approximately $9,000.00.
RECOMMENDATION: Approve a resolution approving the attached resolution and agreement
terminating the 2012 tax abatement agreement with T & K Machine, Inc., now known as Aequs
Aero Machine, Inc.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING AN AGREEMENT TO TERMINATE TAX
ABATEMENT AGREEMENT BETWEEN THE CITY OF PARIS, TEXAS AND
T & K MACHINE, INC., SUCCEDED IN INTEREST BY AEQUS AERO
MACHINE, INC., DATED NOVEMBER 12,2012; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, heretofore, on November 12, 2012, the City Council of the City of Paris,
Texas approved the Tax Abatement Agreement (the "Agreement") attached hereto to as a
part of Exhibit A and incorporated by reference as if fully set forth herein with T & K
Machine, Inc., which has been succeeded in interest by Aequs Aero Machine, Inc., ("the
Company"); and
WHEREAS, the term of said Agreement expires on December 31,2019; and
WHEREAS, said Agreement relates to property owned by the Company within the
City of Paris, which property is located within an Enterprise Zone as set forth in the
Agreement;
WHEREAS, the Texas Tax Code Sec. 312.208 and tax abatement guidelines in effect
in 2013 and on the date of this Resolution allow for the modification and termination of a
tax abatement agreement during the term of said agreement; and
WHEREAS, due to prevailing conditions in the industry, OWNER was unable to meet
its obligations under the Agreement; and
WHEREAS, in consequence thereof, the Company has agreed with the City to
terminate 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 the Tax Abatement Agreement dated November 12, 2012
between the City of Paris, Texas and T & K Machine, Inc., succeeded in interest by Aequs
Aero Machine, Inc., shall be terminated in accordance with the agreement attached hereto
as Exhibit A,, and that said termination agreement, having been reviewed by the City
Council and found acceptable and in the best interests of the City of Paris and its citizens,
be, and the same is hereby, in all things approved.
Section 3. That the Mayor is hereby authorized to execute the Agreement to
Terminate Tax Abatement Agreement Dated November 12, 2012 between the City of Paris,
Texas and T & K Machine, Inc., now known as Aequs Aero Machine, Inc. attached hereto as
Exhibit A and incorporated herein by reference.
Section 6. That this approval and the execution of the agreement on behalf of the
City is not conditioned upon approval and execution of any other tax abatement agreement
amendment or termination by any other taxing entity.
DULY PASSED AND APPROVED this 9th day of December, 2019.
Steven J. Clifford, M.D. Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
THE STATE OF TEXAS
COUNTY OF LAMAR
AGREEMENT TO TERMINATE TAX ABATEMENT AGREEMENT DATED
NOVEMBER 12, 2012 BETWEEN THE CITY OF PARIS, TEXAS
AND T & K MACHINE, INC., NOW KNOWN AS AEQUS AERO MACHINE, INC.
This Agreement to Terminate (the "TERMINATION AGREEMENT") a Tax Abatement
Agreement (the "AGREEMENT") dated November 12, 2012 is entered into by and between the
CITY OF PARIS, TEXAS ("CITY"), a Texas municipal corporation situated in Lamar
County, Texas, acting by its authorized officer whose signature appears below, and AEQUS
AERO MACHINE, INC., the successor in interest to T & K MACHINE, INC. ("OWNER")
acting by and through its authorized officer whose signature appears below.
WITNESSETH:
WHEREAS, heretofore, on November 12, 2012, the CITY and OWNER entered into the
Tax Abatement Agreement (the "AGREEMENT"), attached as hereto as Exhibit 1 hereto and
incorporated by reference as if fully set forth herein, related to OWNER's Single Serve Beverage
Line; and
WHEREAS, the term of said AGREEMENT expires on December 31, 2019; and
WHEREAS, said AGREEMENT relates to PROPERTY owned by OWNER within the
City of Paris, which PROPERTY is located within an Enterprise Zone as set forth in the
AGREEMENT;
WHEREAS, the Texas Tax Code Sec. 312.208(b) provides that a tax abatement
agreement may be terminated by mutual consent of the parties in the same manner that the
agreement was approved and executed; and
WHEREAS, due to prevailing conditions in the industry, OWNER was unable to comply
with its obligations under said AGREEMENT; and
WHEREAS, as a result of same, CITY and OWNER agree to terminate the
AGREEMENT; and
NOW, THEREFORE,
For all of the foregoing reasons, CITY and OWNER hereto do hereby mutually contract
and agree to terminate the Tax Abatement Agreement dated November 12, 2012 and attached
hereto as Exhibit 1 and incorporated herein by reference.
WITNESS our hands this day of ....................... 92012.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
WITNESS:
THE CITY OF PARIS, TEXAS
-0
Steven J. Clifford, M. D., Mayor
AEQUS AERO MACHINE, INC., successor in
interest to T & K MACHINE, INC.
Name: Lawrence Layne Miller
Title General, Mana ,ger
2
TSE STATE OF TEXAS
COUNTY OF LAMAR
TAX ABATEMENT AGREEMENT
This agreement is entered into by and between the CITY OF PARIS, 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 T & K MACHINE,
INC., a Texas corporation, 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, Texas, did heretofore, on the 13a' day
of August, 2012, in Resolution No. 2012-072 , (1) 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 (2) pass and adopt appropriate Guidelines and Criteria governing Tax Abatement
Agreements to be entered into by the CITY as required by the Property Redevelopment and Tax
Abatement Act, as amended;
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; and pursuant to the 2010 United States Government Census, the
IMPROVEMENTS which are the subject of this AGREEMENT situated upon the Land
(hereinafter defined) within City of Paris, Texas, are included within an ENTERPRISE ZONE,
as is shown in the print-out of such ENTERPRISE ZONE from the Office of the Governor of the
State of Texas on its website, as shown in &h1hft A attached hereto and made a part hereof for
all purposes; and
WHEREAS, the use of the IMPROVEMENTS, the addition by the OWNER of
additional employees as is herein described, amd the other 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
WHEREAS, the City of Paris, Texas, is on this date entering into this Tax Abatement
Agreement with the OWNER to abate the taxes assessed by the City of Paris over a period of
seven (7) years, commencing January 1, 2013, and ending December 31, 2019, under the
provisions of the CITY's Guidelines and Criteria for Tax Abatements pertaining to the
IMPROVEMENTS to be made to the OWNER's existing plant located at 2220 West Park Street
in Paris, Lamar County, Texas;
p1m
The eftective date of this AGREEMENT is the 12'b day of November, 2012, with tax
abatement begirining with the tax year commencinglasm . r.
W 10777111 Will
Cliteria for Tax Abatements in effect in the CITY. MnLitictill an
11.
Area to be Improved
TBEL LP, a Texas limited partnership CTaylor"') is the Owner of the real property (the
"Land") upon which the IMPROVENIENTS are situated. Taylor, as landlord, has leased the
land under the provisions of a long-term lease of 5 Yms (such lease terminating in the year,
2017), to T & K MACHINE, INC., as tenant (defined above as the OWNER for purposes- of
convenience in documenting this AGREEMENT). The Land is described in E
_A�b
attached hereto and made a part hereof for all purposes, Under the terms of the lease OWNER
is and has been in possession of the Land and OWNS 0 buildings and other improvements on
the Land, and will continue to do so during and exceeding the tenn of this AGREEMENT,
unless otherwise agreed to by all parties. OWNER is the party conducting the business on s-ach
ALI MIM, Mail I W COT No 11 h O&W MO4 Fri
'1{ -11 on
'1*1
T
machined to be supplied to the aerospace industry. OWNER'S existing facility at the time
of exeoution of this AGREEMENT consists of a 27,000 squ= foot group of buildings
composed of 15,000 square fed of production is and 12,000 square feet of office and
support space. OWNER will over the first five (5) years of the term of this AaREEMENT
purchase and install eight (8) uew machining centers at a total cost of $1,400,000.00, which will
be placed within the additional 5,000 square foot building to be constructed. A possible
additional seven (7) machining centers may later be purchased and placed within a
contemplated second additionol building not included within this tax abatement, to be
constructed on the Land. In addition, during the initial 5 -Year term of this AGREEMENT,
iq
OWNER contemplates hiring twenty-two (22) new personnel as full-time employees of
OWNER to work at OWNER'S facility in Paris, Texas. The additional building of 5,000 s4uare
fed and the 8 new machinin,,-i centers whiclije cljov
.0
be called the "IWROVEMENTS". f %?
construction and installation of the IMPROVEMENT -S will re uire
engineering and design work, procurement of equipme i q
modifications and electrical and mechanical installations on the 'It, nfrastructure and -utilitim
Land. The IMPROVP-MENTS
are being made to enable the OWNER to increasc its caPability to manufacture precision
machined parts for the aerospace industry. The IMPROVEMENTS are more specificWly
descxibed as follows, and are to be located as is shown in Exhibit C attached hereto:
A. To the Land, building modifications to add 5,000 new square feet of building
space to house the new machining centers and employees.
B . New machining centers to be placed within the new building described as folloi
9 111NATA
►
IMPROVEMENTS shall be reflected in the Certificate of Completion issued by the City
Paris, Texas, referred to above. I
V ff
F ra r4
L' 179-F IM, YT
completed as agreed, until the expiration of this AGREEMENT, continuously operate an
maintain the PROPERTY, including the specc units of 1. t' and equipment
identified herein, as a fbod production plant.
5J OWNER is adding twenty-two (22) new full-time jobs to its employment base
over the fint five f
,fir,tan of the term of this
OWNER'S customer demands req -vire. OWNER currently employs sixty-five (65) persons at an
annual payroll of $2,542,000.00,
11
WISMANK4A, IM1114 0 a UVAI P Zly
to do and remain competitive in i s stry.
U
R .1 In the event that (a)(1) the IMPROVEMENTS for which an abatement hAs be
granted are not completed in accordance with this AGREEMENT, (2) the expenditure for
IMPROVEMENTS does not meet the amount required herein, or (3) OWNER does not hire
least twenty-two (22) new employees over the first five (s) years of the temrm of th
AGREEMENT, as is represented herein; or (b) OWNER allows its ad valorem taxes owed,
!P1ifVL*jsV-1Ti4EFT6 =1-11-01Z
,iefault by OWNER hereunder due to a significant downturn in the warket for parts in the
aerospace industry.
V11.
Personal Property Tax Abatement
Inalumin"Tiv, 11Mim,
R
ex;lioi-@-v� Wit I OIQ
t -4 4 4
;e4
VM.
No Conflict of Interest
NUM
I j;:111 Jill liti
9.1 7he terms and conditions of the AGREEMENT are binding upon the, successo
and assigns of all parties hereto. i
P
10 J The OWNER agrees that the CITY, its agents and employees, shall have the
reasonable right of access torecords concerning the OWNER's investment in the
IMPROVEMENTS for the purpose of conducting an audit of the proiect iTw-rwo
4T4Fa7o.r4r*W&7411TJn.—dg4A-iWo
,pT.J
00 0 1.-,
ei A 0
execution of this AGREEMENT to December 31, 2012, The Asset Report vAll provide the
date on whiob the asset was capitalized, the acquisition amoimt, and the awmulated
depreciation amount. At the CITY's request the OWNER will provide actual invoices to
support the amounts shown on the Asset Report.
10.2 The OWNER further agrees that the CITY, its agents and emPloYees, shall hav-,
reasonable right of access to the PROPERTY to inspect the IMPRovEMENTS in order to
insure that the construction Of the IMPROVEMENTS are 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 this AGREEMENT during the term of the AGREEMENT. All inspections wifl be made
only after giving the OWNER notice at least s0venty-two (72) hours in advance, and such
inspections shall be conducted in such a manner so as -rot
MIT M0- 12-1161
Jpl`scs 01 asseil4glng ana C011mung ad valorem taxes andverifying or
enforcing compliance with this AGREEMENT. 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 CrlY's ability to perform inspections or to enter _..O. the
subject of this AGREEMENT,
J
infonuation: the following
(a) Coi-fy of the 1trintout frora the Lam
market value of the PROPERTY prior to the construction of the
BAPROVEMENTS;
d
(b) Detailed description of the IMPROVEMENTS;
(c) Detailed description of any miscellaneous items of office equipment and
the actual cost of such added office equipment;
(d) Copy of oridentification of plans and specifications of Constructed
improvements and the location of the same for inspection by CITY's
certification team;
(e) Detailed list of and actual cost of added machinery and equipment;
(f) Actual cost of capital rWROVEMENTS; and,
(g) Date of substwitial completion of the IMPROVEMENTS for the yen, 2017,
as defined in paragraph 3.1 hereof.
11.2 The OWNER further agrees that it wfll 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 on the forms provided by the
city.
11.3 In addition to the amusl report required under Section 11.2 hereof, the
OWNER further agr=s that it will provide CITY a copy of its Texas Workforce Commission
Employer's Quarterly Report within thirty (30) days of its filing of the same with the Texas
WorkfbTce Commission.
i®
Authority to Contract
This AGREEMENT was authorized by resolution of the City Council at its
regularly scheduled meeting on this date of November 12, 2012, authorizing the Mayor to
execute the AGREEMENT on behalf of the CITY.
12.2 This AGREEMENT was entered into by OWNER pursuant to the authority
granted to the authorized official whose signature appears below.
12.3. This AGREEMENT shall constitute a valid and binding AGREEMEA
0 , w4i
0
vonamons or io ninFIce UIT-1 by Inalung afty promise
or representation not contained herein.
13.2 This AGREEMENT, except by operation of law, shall not be assigned or
transf=ed by OWNEF, without the prior written consent of CITY, which consent shall be at
the `R.l'"a -ir of the CJTY.
got I i ►
PETS031, or k4
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:
OWNER:
T & K Machine� Inc.
Attn; Corey C. Campbell, Vice President, Operatiom
2220 W. Park St
Paris, TX 75460 (corevcQtknaris.com)
With a 9L)
T & K Machine, Inc.
Attn: David Landrith, Controller
2220 W. Park St
Paris, TX 75460 (davidl@Lkparis.corn) AND TO:
CITT:
City of Paris, Texas
Attn: City Manager
P. 0. Box 9037
Paris, TX 754-61-9037
WIM a copy to: '
Citv Clerk- City of Paris, Texas faddrm-s—,,�.gwf -e as, eky,&�
L
0
of said AGREEWNT shall not be affected thereby, and to this end the terms and provisions
of saidd AGREEMENT are declared to be severabie.
13.5 This AGREEMENT sets forth the entire undemanding between the parties, and any
other understandings or agreements shWI be canceled end 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 writmg signed by
both parties and speccally referring to this AGREEMENT. The captions in this
AGREEMENT we included for convenience onl�LancUYT_Mwj�
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, consumed
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 CTW, OWNER, and their
mpective successors, and permitted assigns, if any.
13.6 Venuc 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.
/o.
"dill 'A
ty Clerk
APPROVEK) 0 FORM:
0
M
T & K MACHINE, INC---'
........ .. ......... ................ . . . ................ ........ ..
shall Taylor, P '.,Ient
PROPERTY,
-LT rise onew C'117VEA'
Land of OWNER in Paris� Texas
8 = Land Description of OWNER'S fac11W in Parls, Lamar County, Texas
Drawings showing the new building and the location of the IMPROVEMENTS
within the new building,
CITY'S Certificate of Completion
Property Tax Abatement Schedule
E CITY'S Guidelines and Criteria for Tax Ab2tements
IF
A = 2010 Designation of Enterprise Zone which Includes OWNER'S PROPERTY$ and
Land of OWNER in Paris, Texas
B - Land Description of OWNER'S facility in Paris, Laroar County, Texas
C = Drawings showing the new building and the location of the MPROVEMIENTS
wkbk the new building.
D = CITY'S Certificate of Compleflas
E = Prop" Tax Abatement Schedule
F = CITY'S Guidelines and Criteria for Tax Abatements
,in
1, e .
�F
state
MMO
P M A6
T� �blit�e lum
2220 W. Park Strom
r
o i y " Aper
August 20,2012
6-,"A
All,j/
Ent se Zones -
�: W
-2,01 .,..... ._....... „...P��.��.
r.
Eraterg%a Zoned
04
/r
6-,"A
All,j/
Worse FOTCO d
Aerospace Mg.
force - ,Aa ars
04
Wining aI4hinery
Work force 4 Aeie
'<Transporbtion
Mrk F
0
Architecture
Engfnearing
C24
WaTk Force - Auto
"
Btu
Nelson Suirveying Compan
920 North Main Stmet Pads, fiiii4 ..........
903 -768 -Mi fax "3-7U-3399
J.M. Nelson, RPLS of Texas, #4025 date
I
fo
CHAPTER Property Ident Location and Deseliptlon
lv�
rpAN , !
wm
MW
----------
*am Am
ASPWLT RM (PAW WW)
c,��E-IIYVIIX =r-#77- T
- ME-MUMW WARWOMM
wm*m a== IM
FAUM MW UNE
M M.
gm
I
ME
I
EMAID
WX.
4 1 0
The City of Parls, Texas (the "City"), has executed and defivered a Tax Abatement
Agreement with T & K MACHINE, INC., a Texas corporaflon, for the abaternent of ad valorem
taxes to be collected for the City upon certain new equiprnem"Improvements") to be
instaRed at the corporation's plant in Paris, Tem.
T & K MACHINE, INC. hu complied with The tax Abatement Agreemen4 and the City,
acting herein by and through the its dWy elected MaM verifies that the Improvements agreed
to be built, installed and used have in fact been. completed as provided for in the Tax Abatwnent
Agreeme-at.
NOW THEREFOn, the City authorizes that the Property described in the Tax
Abatement Agreement shall receive at abatement Of City taxes of 100% of such taxes asscssed
-apon the increased value of the bnorovew(wo-pq go �,,stgi jaxvur 6P voi, ip I -r. Ada
- WE
to 0% in tho year, 2020.
Jul I I
HIM=
X y r
A, F ,,
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMpNT
1. Geaeral Purpose and Objectives.
The 01Y Of Paris, Tens (heivin called the "City") is cormnd to enharteing the competitiveness
and the expansion potential of the City's manufacturing indu�, to attracting and encouraging
mw manufictuting industry and investnent; to improving the City and its inbstruchre, wwrh
attracts and dcvelM= and to emoLlre- 0 P. ITT. It9dep—
J7011NIF-MI-Rars - I ntrciolre, We-U"W] give consideration, on a case.
by -me basiproAding tax abstament according to state law to the owners of real and
Personal PrOPertY fQr P"Riects that stimulate eConornic growth and diversification in the city.
Tax abatement benefits may be made available to industrial, manu&cturing, distribution, and
service fadlities. or any "primary jobEel creating industry as defted by the Economic
Development Act of the State of Texa& The facility must be currently in the City or lomfing in
the City, and located in a designated Enterprise Zone or Reinvestment Zone. New fkailities and
structures as well as the oxi2ansion and M
considered. Evaluatica of a tax abaterneut request Will be based on the informationprovided in
the tax abstemerA application. However, the Cit34 Lamar County and paris Junior College am
under no obligation to provide tax abat=cnt to any applicant.
The Paris CiV Council acts 8S the lead entity for projects located in the cily Hnits. The Lamar
County Board of Commissioners and the Paris Junior College Board of Regents bave also
adopted We policy and will consider tax abatement request that qual* under these policies,
H. Definitions.
Definitions areprovided. as an Appendix A.
111. Designs dou of a Reinvestment Zone.
The City or County may designate an area as a reinvestment zone in accordance with the
critetia. and procedural requirements set forth in r
Uir
city to be ellgible for tax abat:cment it must meet the criteria for designation as a tax abftt=e4
reinvestment mne as set forffi in the Property Redevelopment and Tax Abatement Act, Texas
Tax Code Ctmp$er 312.
IV. Tax Abatement Authorized.
The City, !Lr�ou its ekZted City Council, 111:1111::
N I
If *411*111 Y461., M. -o i ffWTCMrs777—.fL
Paris, Texas Economic Development Corporatiori
POLfCY STATBMENT
CRITERIA AND GUIDELMS FOR TAX A13ATEMENT
Tax abatement in only be aranir-d. for Z. I
I ............... ................
AU -1411 .011-MVIL. 01 A M1 ij Kid; 1*310117j Zieqq
The negotiation of tax abatemerd agrcwmts will be conducted by the Paris Economic
Development Corporation (Paris EDO in W;tk, 01A ri'inj �IL
711. IM PEOIJUS Weffm M --f Aen=
on public investment win be MMWtd in tOrm Of WAS cmted, obs retained in cases of
existing OMPIOYers Widlin 6P City, and (ifi) broadening of the tax base, and eXpaMfOn of the
economic bw (e.g. capital investment).
bft Criteria for Tax Abatement for Real and Personal Property
A PrVatY Owner and/or lenee SMI be ellgiblefor tax abatement only Upo010
u the f I wing
criterk
...... . . .. . .....
Uthorized 1.
...... ....
An authorized facility is used for manufacturing, nuem rMonadi ......
stri6aon' regional
Facility
tourist entertainment, other basic industry, or any primary jobs creating industry. (see
Appendix A for 4atailed deftitions.)
2.
A new auOWTIUd racHity must be cyeated, or am existing "Oriud heflity must be
Jmwov4 modemized or expanded.
3.
Ita kaged wAmized facility is granted abatement, the Agreementrilay be executed with
lessor and/or lessee, depending upon the particular circumstences ofthc proposed project. I
thle agreement Ls with Ike lemor, Icssor shag demonstrate binding contracts with the lessee to
the
... .......
0144=; 44MV
"ro we Coy
PMPCqiy
am
Located in 12,
Ex
(7) yam with a
Historic
erciel prope
DistrictrMn
canstFu
WnSUU On MqUiMS R MWIMUM InVOOMWnt Df $100,000 to be considered
thfte(a)year 100% exemption.
4.
New commercial constmedort requires a minimum Investment cyf $200,00 for a 190% lax
!!!MnV f .
Ai.—LThe
. . .. . . . . ............. .
City will decide whetherto grAlt tax ibatement to an applicant, and the namount ffany,
Term of
such abatement oil a cawbycase 1r;asis and in accordance with fifte Criteria and (3uidelines.
Abatement 2.
ne term of abatement granted under any agreem enj may not exceed that perm itted by
_kpplicable state Ian,.
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATFMENT
3. The amount of the abatement sho be bjtWA up . . ..... -"- .. ....... ..
on a percentage (0 to 71t%) of all or IN
portion Otthe eligible property within t6 authicrized facility,
4. Abatements may only be granted fbr the additional value of eligible Mal MA personal
POPWY iluVrvvernellts made P=uant to and listed in tJw agreement between the city and
PrOWLY 0wftW and/or leace, subject to such jIIF Wons as the Ctty mo require.
5. Real propeAy tax abaternerit may be Winded only to the wont that its vWw ft each ym of
the sgree1o`4 exceeds Its value fbr the year in which the osmwent is execaw.
6- lfa modern'zat'00 Proled includes the T01311100fumt Of improvements within an authodzed
lkzilky. the value eligible ft abdernent shall be the value ofthe new unit(,X Im the value of
therepkcedunft(c.
L
.crwa u:5ed to
Abatement j1DYo
Evaluation Limited to., evit Udc R PrOPOSel PrOJOCI aPPlication for abatment incia-des0bu-t-j"s-,
I. The dollar amoLmt Of the incjugie in ;f roll,
numW Ofjcb$ crexted or retained by ft employer involved.
3. 7le poodble affect cm afteting other taxable impriovemeM fift the City.
4. The nabre of, and overal I effect on the City.
5. 7be effect an the W*, health, and moral$ Ofthe CiVs residents.
6. Any substmtW long-kTm adveme Off"t On the PrOvisitln Of City Services or its tax b
7. Meeting all relevant zoning reqWments. 890
8- C`owimft with " cOmPrehmin plan of1he City or Comity ofL4MJtr.
9. The ty" and cost of public iMPTUVarieft and services (water and sewer main extensions.
street$ and roads, etc.) iquired of the C'kty.
----------
Paris, Texas Economic Deve)opment Corporation
POLICY STATEMENT
mn-t' m- a—y- !!R!1'F , " andJab!q"!!p#C4" . ......
mr2q .-- —I"', -
be made avdilable to enVloYm who am creatingjabs. and in C M "''69'—ne—W "PI I
With MpeCt tD AN AAO&Cd facility lWaled anywhem within the City orits
ft following criteri& ex" tgrTitorilkl jurisdiction based an
L To be eligible for any tax abateMmt, Ojere mustbe a minimum capital invagmealn the aulorizLd facility
S250.000 and at kast ton (10) newjobs added to the employees jgbDr ibme. Ile dunt below provides
dared i
tqw-kbe-.- 10,440151 for tax abatm�-4ct.
tr A I I
1.1#
2- When an Ab2t"afn=tP0rcahta98 has been agreed UPon it shan bcgrauted busd On th6lbilowing sobedule. TVs
chart does not imply that 100% of the valuation will be abated, ltrofm to the ratio of the ggmr
abatement. d.tc
"!n ,
Y 100%
Year 4
eariA
ValuatiDn full, back on
H
.........
.....
. .. ... ..
2- When an Ab2t"afn=tP0rcahta98 has been agreed UPon it shan bcgrauted busd On th6lbilowing sobedule. TVs
chart does not imply that 100% of the valuation will be abated, ltrofm to the ratio of the ggmr
abatement. d.tc
"!n ,
Y 100%
Year 4
eariA
ValuatiDn full, back on
H
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUID81,IWES FORTAXABATEMENT
Accordingly, if an existing employer (as opposed to a newiy cmaW business or industry
moving into the City), owns or leases an authorized facility and has plaw to improve such
Property by conStruCtIP9 new improvements on its real property and/or adding new persorW
property to its authorized f4cility which qualify for tax abatement under these Criteria and
ew a V, T;Ajftl R
R
. – �N #I — UM; iW-59N-Wflur improvements to remal
property atd for new personal property at authorized facilities am identical to that set forth ill
Atticle V above (except that no new jobs or newly created minimum annual payroll are
required). The City encourages existing employers to retain as If jobs and a much existi
annual payroll as is economically feasible for the existing employer, wbile remain competitii
in its industry. I
313M���
Findings In order to enter Into an agreement, the City must find that.
1. The tmw oftbe proposed agroe ment comply with these OWdefines and Criteria.
2. There will be no submeaft adveme airman theprovWan ofatysemoel ortax bum
-3. That the planed use of the pro;wiv will rot constitute abnard to buh9c safiiv. heafth �
...........
Findings In order to enter Into an agreement, the City must find that.
1. The tmw oftbe proposed agroe ment comply with these OWdefines and Criteria.
2. There will be no submeaft adveme airman theprovWan ofatysemoel ortax bum
-3. That the planed use of the pro;wiv will rot constitute abnard to buh9c safiiv. heafth �
Varis, Texas Economic Development Corporatl6n--
POLICY STATEMENT
CRITERIA AND GUIDELMS FOR TAX A13ATEMENT
morals,
4. brIeWentto '"roval of" ord'wme des'Faft a Wnvc�slfflentwnk the UVA411 find thn
the imPrOVemenls Sought M ftdble nd pracdcal aW would be mL bengfit to the land to be
hi the Mky"ptzone and to the
1 —0
V-111. Abatement `!fment Terms and Candiflons.
ti rkM# B videsmamyofthe. tergis and
M Ameadmeuts to Gtddelhm and Criteria
nese Guidelines and Qdte:ri-%qvP—; �t 2��,7zrjj; fC-'V-U7&! U -UT?" -a
adoption, unless amended or repealed by the affirmadve vote of ftee-fourths (514) of the
members we City Coundl.
-k WIMUT177=71,1771 I CORM
Paris Economic Develoik;=t Corpors0on.
1125 Bonham Street
Pads, Tun 75460
9M -7944W
Fox 903-784-2503
P4,ris, Texus Economic Development Corpor&tlor
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATFMENT
..................
Paris, Texas Economic 4 1 Corporation
POLICY r NT
CRI TIERIA AND GUIDELINES
134uivalent
f' F
Jobs
Per 1availableM one Y ;f`
part-timejobs Smaden oneemployeT
pan-timejobeadded
togetheral1s':i of hours ♦: 4 per „ no such part.time job
hoursut
requires 32 f pereqijal eleven t ni. (352
hours divided by 32 hours per week eqW 11). IFTEjobs do not
require the employee
receive to
PI and up increases theproductive
fnput or output, updates the technology, or tubataniia4 lowere tha unit cost of
QmWiorl. Modernization may resuft from I o " I Rl sk i or insWluionof
Mubinery, equipment, tools, shelving or materials elJ11gib`T'e'-u"n'dw- app–lic—ahl,
Property
abatement, which can be removed from an authorized facility described in Secdon TV
i Ai '
Pro 1 II `1 I n y I
lk
I
... lli
Development Corporationtonreview andY.'- i t# w
the
applicabletaxingentities 1 community,Abatement
r t.s 1
composed ' Peru= i1 r f c.: 1 CRY nager or designee), the
County of Lamar (tht County Judge or designee), I'Mris -TUW0r College fthe Praident or
designft)ft Chief Appraiser of nrY Appraisal District r' the
Paris, Texas EcOuOtniv Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Abatement Agreement Terms and Coladitions
Afte'r WrOval, the CitY Shull fOMW r an order Or res Ir q.Td I"t, �—Jj
",
F511o.,45RAF-Till.vol Emynl I ......
Description The following projw-t specifics will k inef .......... .. . ........ . . ............
I The base year value.
2- Percent of increased value to be abated each year.
3. 7be com-encement date and the termination date ofabatement.
4. A -mount Of investment and average number Ofjobs involved during the term of the
8grWnenL
5. IMP. pmpowd use Of the authorized facility, rmture of construction, time schedule, plat
mpetty description, and 11WOVenient list, as provided in the applicaflon,
6 A ]left ofthe kind, uumber� locetior, and coots of all propmd improvements of the
property.
7. A statement Ihniting the uses Of the Property Ponsistent with the general purpose of
encouraging development or redgvelopment of the reinvestment zone during the period that
property tax abetment is in affact.
B. That WMIS to the Pytect is provided to allow for the inspection by City Inspecton and
officials in order to ensure that the improvements or MPalm am in&& according to the
Speccations and conditions of the %neingnt
9. rilat property t" revenue lost as dLresult of the tax Abatement Wtftmc#t will be recaptured by
the, City Ifthe owner of the property fails to make the irnproverneuts or repairs as provided
Vy tie agreement,
10. Bub term agmd to by the owner of the prop".
requirement that the owner ofthe properly shall Certify W=zlly to the City tbar the owner
in compliance with each applicable term afthe agreemeryL is
12. Conbutual obligations in the event of depiult; vjohflori ofterms or condi6ons, dplinquent
tBxe% recaptum adroinistation and assignment, or other provisions that may be required by
state law, or in the arrerion of the City Council.
13. 11W the City may camel or modify thr agreginern if (he property ownetr fails 10 emply with
the &urt-"r,,t.t
. ....... ..... I — --
.�' Y dd--
It 12c C4etermines: that the Person Or entity reaCivin
g an abdembnt is in efoult Re mg to
the terms and conditions of its Rgrement. the City shall no* the pompqny or h4vidW a
wriflng at the address stated ln the agreement and ifMA default is not rated within a reasonable
time $PecW1Cd in str-h n0licP ("Cure period"), then the egrftment may be modified Or te=inated
without further notice, 11) the event the company or Individual allows its ad valorein taxes owed
to the City to become delhquent and "s to timety and properly fbilow the legal procMures for
their prolat andfor contes; or violates any Of the terms and conditiODS ofthe ag;rement and Wls
to cure dwitig the cure period, the Sgresmentthm May be moded or terininated without firther
notice,
I/ agreement may provide a fbMull for mcapture of all or pad of the tan &baW.
At any fte belbre the eViration, any teit gb=nept agrement may be terminated by r
00rtsellt of all parties Involved in do nutull
'some niariner thw the
to a taking unit in appikation or i4 i(W
of Proprietary abaterneot under these Guidelines and Marla and that describes the sperific processes or busine,ss
Wormation tif: be conducted or the equipment or ollm Property to f ori the prop" for
which tax abstenulnt is $ought is coffideivia] and not subject to public disclosure Una] the
agreemc;rt is executed. f8uch infixuiation in the Custody Of the City after the agymment is
vod not ecuteIs
. ......... e!
The� ... .. ...... ... ... . .. .
Stemployeasen ordesigoatedrepresentativesof"
t t4 inswa a
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA O. TAX ABATEMENT
if the Uwm and cond4im of the agrearawt are j;�_Ma met. Ali
Will be made onlyafterthe4
fy 1 hours,prior
hotice and wil
A lY beAS to notunmasonably
l
the
construction and/oroperation of
Ii f R V
im'
f' f:
1 1
f t
k
k
r ♦f .
,000
Review, These revonsibi
Monitoring and are in fiffl compiam
t f'
f •7 II
f f
Reporting
non-compliance by r: a participants.addditim EDC
011nual basis, conducti parformancey f r acdvffics
ofeatilAbatement
PRdiciPfUlt2 1trepod the findingsIreview th the i t
3. The Cily shall retain the right ;findependentlyy he _
ctivides of tax
abatement f:' p:
4. 'Me City shall be responsilleforenforcementofthe W= of ally tax abatement agreement
an
10