1992-073-RES WHEREAS, the City Council of the City to promote economic development within the of the City of Paris
RESOLUTION NO.
92-073
WHEREAS, the City Council of the City
to promote economic development within the
of the City of Paris or within the
jurisdiction of said City; and,
of Paris desires
corporate limits
extraterritorial
WHEREAS, the provision of certain economic development
incentives may encourage prospective businesses and companies
to locate within such corporate limits or extraterritorial
jurisdiction or existing businesses and companies located
therein to expand; and,
WHEREAS, the establishment of specific guidelines,
criteria, and procedures are necessary to insure that tax
abatement incentives are given and administered effectively;
and,
WHEREAS, the Property Redevelopment and Tax Abatement
Act requires municipalities to establish local criteria for
the creation of reinvestment zones and the granting of tax
abatement within such zones as a prerequisite to granting tax
abatement; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS;
that the City of Paris does hereby elect to become eligible
to participate in tax abatement pursuant to the Act; and,
BE IT FURTHER RESOLVED, that the City of Paris does
hereby establish and adopt the Guidelines and Criteria for
Reinvestment Zones and Tax Abatement Agreements attached
hereto as Exhibit A and incorporated herein for all purposes,
which shall govern tax abatement within a reinvestment zone
in accordance with the Act.
Passed and adopted this 14th day of September, 1992.
~ %.',t-v
~st!er, Mayor
ATTEST:
Cunningham,
City Attorney
GUIDELINES AND CRITERIA
FOR REINVESTMENT ZONE NUMBER THREE
FOR THE CITY OF PARIS, TEXAS
The City of Paris is committed to the promotion of
quality development in all parts of the City and to an
ongoing improvement in the quality of life for its citizens.
Insofar as these objectives are generally served by the
enhancement and expansion of the local economy, the City of
Paris will, on a case-by-case basis, give consideration to
providing tax abatement incentives as a stimulation for
economic development in Paris. It is the policy of the City
of Paris that said consideration will be provided in
accordance with the procedures and criteria outlined in these
Guidelines. However, nothing herein shall imply or suggest
that the City of Paris is under obligation to provide any
incentive to any applicant. All applicants shall be
considered on a case-by-case basis.
The adoption of these Guidelines by the City Council of
the City of Paris does not (1) limit the discretion of the
City Council to decide whether to enter into a specific tax
abatement agreement or (2) limit the discretion of the City
Council to delegate to its employees the authority to
determine whether or not the City Council should consider a
particular application or request for tax abatement.
Further, by adopting these Guidelines, the City Council is
not nor does it intend to create any property, contract, or
other legal right in any person or entity to have the City
Council consider or grant a specific application or request
for tax abatement.
1.
(a) "Abatement" means the full or partial
from ad valorem taxes of certain real and tangible
property in a Reinvestment Zone designated for
development purposes.
exemption
personal
economic
(b) "Act" means the Property Redevelopment
Abatement Act, Texas Tax Code, Section 312.001, et
amended from time to time.
and Tax
seq., as
(c)
abatement
City.
"Agreement"
between a
means the wr i tten agreement
property owner and/or lessee
for
and
tax
the
EXHIBIT A
(d) "Base Year Value" means the assessed value of
Eligible Property as of the January 1 immediately preceding
the execution of the Agreement plus the agreed upon value of
eligible property improvements made after January 1 but
before the execution of the Agreement.
(e) "Eligible Property" means buildings, structures,
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 facility. Inventory and supplies are not included in
eligible property and are not eligible for Abatement.
(f) "Modernization" means the replacement and upgrading
of existing facilities which increases the productive input
or output, updates the technology or substantially lowers the
unit cost of operation. Modernization may result from the
construction, alteration or installation of buildings,
structures, fixed machinery or equipment, but shall not be
for the purpose of reconditioning, refurbishing or repairing.
(g) "Reinvestment Zone" is an area where the City of
Paris or Lamar County has decided to influence development
patterns and attract major investments that will contribute
to the development of the City or County through the use of
tax abatement for specified improvements.
2. DESIGNATION OF A REINVESTMENT ZONE
The City may designate an area as a Reinvestment Zone in
accordance with the criteria and procedural requirements set
forth in the Act.
3. TAX ABATEMENT AUTHORIZED
The City of Paris may agree in writing with the owner or
lessee of taxable real property that is located in a
Reinvestment Zone, but that is not in an improvement project
financed by tax increment bonds, to exempt from taxation a
portion of the value of the real property or of tangible
personal property located on the real property, or both. The
period of the Abatement granted under the Agreement shall not
exceed the term authorized by law. Such Agreement will be
based on the condition that the owner or lessee of the
property make specific improvements or repairs to the
property. An abatement may provide for the exemption of the
GUIDELINES & CRITERIA - Page 2
real property in each year covered by the Agreement unly to
the extent its value for that year exceeds its value for the
year in which the Agreement is executed. An Agreement may
provide for the exemption of tangible personal property
located on the real property in each year covered by the
Agreement other than tangible 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 tangible personal property.
It is the intent of the City of Paris to customize the
offering of tax abatement incentives on a case-by-case basis.
This individualized design is intended to allow maximum
flexibility in addressing the unique concerns of each
applicant while enabling the City to better respond to the
changing needs of the community. As a general rule, no tax
abatement will be granted to any applicant in an amount
exceeding 10010 of the estimated total tax increase to be
levied on the proposed property improvement or for a term
exceeding seven (7) years. The threshold criteria that will
be utilized in evaluating a particular abatement will
include, but not be limited to, the following:
(i) The proposed project must create at
least 40 or more jobs and to promote among
equally qualified job applicants the hiring of
employees from the enterprise zone, City of
Paris, and Lamar County, Texas, subject to the
laws and regulations of the United States of
America and the State of Texas and subject to
any labor contracts currently in effect and
any successive contracts or past practices.
( i i) An
$4,000,000.00
required.
(iii) The project must meet all relevant
zoning requirements.
investment
in property
of at least
improvements is
(iv) The types and cost of public
improvements and services (water and sewer main
extensions, streets and alleys, etc.) will be
required of the City? What types and values of
public improvements, if any, will be made by the
applicant?
GUIDELINES & CRITERIA - Page 3
The criteria outlined above will be used to determine
whether it is in the best interest of the City of Paris to
provide any tax abatement incentives to a particular
applicant. The degree to which the specified project
furthers the goals and objectives of the City of Paris and
the relative impact of the specified project will be used to
determine the total value of the tax abatement incentives
provided.
During the term of the Agreement, taxes shall be payable
as follows:
(i) the Base Year Value of existing
property shall be fully taxable; and,
(ii) the additional value of new Eligible
Property shall be taxable in the manner described
in the Agreement.
(a) Eligibility. Any present, future or potential
owner of taxable property in the corporate limits or within
the extraterritorial jurisdiction of the City of Paris may
request a tax abatement by filing a written application with
the City Manager.
(b) Application. The application shall include: (i)
name, address and telephone number of applicant and of a
principal contact person; (ii) nature of business (i.e.,
manufacturing, industrial entertainment, etc.); (iii) type of
entity (i .e., proprietorship, partnership, joint venture or
corporation; (iv) general description of the improvements to
be undertaken together with the projected new value to the
property; (v) descriptive list of the improvements for which
an abatement is requested; (vi) list of the kind, number and
location of all proposed improvements of the property; (vii)
estimate of the number of new jobs to be created; (viii)
metes and bounds description and plat of the property on
which the proposed improvements will be situated and
identification of the Reinvestment Zone in which such
property is or will be located and all roadways and existing
zoning and land uses within 200 feet of the property; (ix)
time schedule for undertaking and completing the proposed
improvements; and (x) any other information about the
proposed project as may be requested by the City.
GUIDELINES & CRITERIA - Page 4
(c) Review. Upon receipt of a completed application,
the information submitted will be reviewed by the City
Manager for completeness and accuracy. The City Manager will
then distribute the application to the appropriate department
heads for internal review and comments. Following staff
review, copies of the complete application package and staff
comments will be provided to the City Council and to other
taxing units that may be willing to participate in offering
tax abatement incentives. Generally, the City Council, staff
and other taxing entities will discuss the proposed
application at a work session prior to its formal
consideration by the Council. Following the work session,
the City Manager may be requested to obtain other information
prior to further consideration of the application.
At a subsequent regular City Council meeting, the
appl icat ion for any tax aba tement incent i ve may be
considered. The City will comply with certain required
public notice and hearings as mandated by state law under the
Act prior to the designation of a Reinvestment Zone and
execution of an Agreement. Prior to final approval, all
legal documents to effect such Reinvestment Zone(s) and
Agreements shall be approved by the City Attorney.
5. CONFIDENTIALITY OF PROPRIETARY INFORMATION
Information that is provided to a taxing unit in
connection with an application or request for tax abatement
under these Guidelines that describes the specific processes
or business activities to be conducted or the equipment or
other property to be located on the property for which tax
abatement is sought is confidential and not subject to public
disclosure until the Agreement is executed. Information in
the custody of the City after the Agreement is executed is
not confidential under these Guidelines.
6. TERMS OF AGREEMENT
After approval of a request for tax abatement, the City
shall formally pass an ordinance and execute an Agreement
with the owner of the facility and/or lessee as required
which shall include, but not be limited to, the following
terms:
(a) Description of the type of Abatement to be provided
and its duration;
GUIDELINES & CRITERIA - Page 5
(b) Legal description of the property to be designated
as a Reinvestment Zone;
(c) Detailed information regarding the type, number,
location, and costs of planned improvements;
(d) A statement granting access to and inspection of
the property and proposed improvements by City
inspectors and officials to ensure that the
improvements or repairs are made according to
specifications and conditions of the Agreement;
(e) A statement limiting the uses of the property
consistent with the general purpose of encouraging
development or redevelopment of the Reinvestment
Zone during the period that property tax exemptions
are in effect; and,
(f) A statement providing for the recapturing of
property tax revenue lost as a result of the
Agreement if the owner of the Property fails to
make the improvements or repairs as provided by the
Agreement.
7. ASSIGNMENT
Tax abatement agreements may be assigned to a new owner
or lessee of the facility only with the prior written consent
of the City. Any assignment shall provide that the assignee
shall irrevocably and unconditionally assume all the duties
and obligations of the assignor upon the same terms and
conditions as set out in the Agreement. Any assignment of an
Agreement shall be to an entity that contemplates the same
improvements or repairs to the property, except to the extent
such improvements or repairs have been completed. No
assignment shall be approved if the assignor or the assignee
are indebted to the City for ad valorem taxes or other
obligations, or if any event of default under the Agreement
remains uncured.
8. AMENDMENTS
These Guidelines are effective for a two year period
unless amended or repealed by a three-fourths vote of the
members of the City Council.
GUIDELINES & CRITERIA - Page 6
9. ADOPTION
These Guidelines were duly adopted by the City Council
of the City of Paris on September 14, 1992, and supersede and
replace any existing Guidelines.
George Fisher, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
T. K. Haynes, City Attorney
GUIDELINES & CRITERIA - Page 7