2020-006 - Approving And Authorizing A Tax Abatement Agreement With Lionshead Specialty Tire & Wheel, LLC.RESOLUTION NO. 2020-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH
LIONSHEAD SPECIALTY TIRE & WHEEL, 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 Lionshead Specialty Tire & Wheel, LLC providing for
a commercial and industrial tax abatement for certain improvements, a copy of which is
attached hereto as Exhibit A and incorporated herein by reference, hereinafter called the
"Agreement"; and,
WHEREAS, the City Council did heretofore, on the 13th day of January, 2020, in
Resolution No. 2020-001, reaffirm its election to be eligible to participate in tax abatement
agreements authorized by the Property Redevelopment and Tax Abatement Act, Texas Tax
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 (Government Code Chapter 2303)
and Texas Tax Code Sec. 312.2011, the designation of an area as an enterprise zone also
constitutes designation of the area as a reinvestment zone (the "Reinvestment Zone"); and
WHEREAS, the property defined in the Agreement and improvements to be made
under the Agreement is situated within an enterprise zone, and thus a reinvestment zone, by
virtue of 2010 U.S. Census data related to poverty levels within the zone; and
WHEREAS, the contemplated use of the property, and the improvements to be
installed therein 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 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 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. 2020-001.
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as Exhibit A. 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 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
A.
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.
C1Ty'`%,,
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ATTEST:
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z ice Ellis, City Clerk
APPROVED AS TO FORM:
S anie H. Harris, City Attorney
Site Cliffordlvkb., Mayor
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 LIONSHEAD SPECIALTY TIRE & WHEEL, 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 13th day of
January, 2020, in Resolution No. 2020-001, 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 (Texas Government Code Chapter
2303), and the Redevelopment and Tax Abatement Act (Texas Tax Code Sec. 312.2011) 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 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 a manufacturing and warehousing facility for
the assembly and distribution of tires and wheel assemblies; and
WHEREAS, the Owner has agreed to create and maintain at least eighteen (18) 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 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. 2020-001, the parties
hereto do mutually contract and agree as follows:
L
Term
1.1 The effective date of this Agreement is the 28th day of January, 2020, with the
tax abatement being effective from and after January 1, 2021, and terminating on
December 31, 2027 (an abatement period of seven (7) years (the "Abatement
Period")). Said Abatement Period will terminate on December 31, 2027, regardless of when
Owner completes the Improvements described in Sections II and III herein below.
II.
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 an assembling and warehousing plant
to be used in its business of assembling tire and wheel assemblies (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.
Owner commits herein to invest no less than SIX MILLION AND NO/100 DOLLARS
($6,000,000.00) to construct the Improvements, which shall be completed prior to
December 31, 2020. 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 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
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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 tire and wheel assembly and warehousing 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 $6,000,000.00, and has committed to creating at
least eighteen (18) new full-time equivalent with benefits positions with an estimated direct
payroll of approximately SIX HUNDRED AND SEVENTY THOUSAND AND NO/100 DOLLARS
($670,000.00). These eighteen (18) full-time equivalent with benefits positions will be
created on the following schedule:
By June 30, 2021: Ten (10) full time equivalent positions with benefits, to be
retained throughout the remainder of the abatement period
By June 30, 2 02 2: Five (5) additional full time equivalent positions with benefits,
to be retained throughout the remainder of the abatement
period
By June 30, 2023: Three (3) additional full time equivalent positions with benefits,
to be retained throughout the remainder of the abatement
period
In order to qualify for the tax abatement provided for herein, Owner must both create said
eighteen (18) full-time equivalent positions according to the above schedule and retain those
positions throughout the remaining years of the abatement period.
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 fails
to create and retain the required full-time equivalent positions set forth herein and on the
schedule set forth herein; or (d) 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 (a), (b), (c), or (d) 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. In the event of default, and in accordance with
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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
75%
Year 4
75%
Year 5
50%
Year 6
50%
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, 2020.
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.
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
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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 Ci 's Rieht of Access o 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.
9.2 Ci w �is of Acce _ to Pro ert 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
5
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 Initial or: The Owner further agrees that it will, by April 15, 2020,
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 year 2020:
(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.
10.2 Annual Re ort on Comnliance for Each Year of the Abatement Period:
In addition to the report required in Paragraph 10.1 hereinabove, Owner further agrees
that by A '1 -thi of each year of this Agreement beginning in the year 2021, 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 herein by reference
and shall reflect the prior fiscal year. Owner shall attach thereto copies of the employer
0
reference summary page of its Texas Workforce Commission Employer's Quarterly
Reports for the calendar year immediately preceding the date of the annual report
required by this section, and the report shall contain a sworn statement signed 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
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.
f/
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 28th day of January, 2019, authorizing the Mayor to
execute the Agreement on behalf of the City.
12.2 This Agreement was entered into by Lionshead Specialty Tire & Wheel, 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:
OWNER:
Lionshead Specialty Tire & Wheel, LLC
Attn: Gary Graham and Galen Miller
305 Steury Ave.
Goshen, IN 46528
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P.O. Box 9037
Paris, TX 75461-9037
With a copy 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.
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 .__ „ 2020.
THE CITY OF PARIS, TEXAS
Mayor
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ce Ellis, City Clerk
A.11111ROVED AS TO FORM:
Stephanie H. Harris, City Attorney
ATTEST -
Title:
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LIONSHEAD SPECIALTY TIRE &WHEEL, LLC
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Title:
Date:
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LIST. O:F EXHIRITS
1. 2010 Designation of Enterprise Zone which includes the Property
2. Map of the Property
3. Diagrams of Improvements
4. Resolution No. 2020-_; Criteria and Guidelines for Tax Abatement
5. FORM: Annual Certificate of Compliance
6. FORMS: Certificates of Completion
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I'L�,SOli.0 IIr'1110N NoIII 2020-001
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
UTI -1 Iii E CITY TO BE ELIGIRIII.X711170 PARTICIPATE IN PROPERTY
TAX ABATEMENTS AND APPROVING u UIDE ..II II ISIS AND CRITERIAFOR
GRANTINGI'AX ABATEMENTS IN "THIP CITY OF PARIS, T S MAKING
OTHER"I DI S AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLAIUNG AN EFFECTIVE DA,TE.
WHEREAS, Section 1312,002 oi'the'Texas ll°ax Code requires local taxing units to state every
Wo years their in -tent tun participate in property tax abatement ag7vernents and to adopt guidelines
and criteria for granting tax abatements and to conduct a public hearing prior to said aunt orizatior.n
and adoption; and
'WHEREAS, on jaounanay 13, 2013, the City Council conduu.awted said public hearing as required
y laws and
' ,HER S, the City Council last a.u:iointed Criteria and Guidelines for- Ta .Abatemenut on
January 11, 2018; and
WHEREAS, after oornsidi.,,�rinn, public: comment, if any, at said, Ipurriaiio hearing, the QqT Council
of the City of Paris, Texas hereby reaffirms its intent to be eligible town participate in. property tax
abatements in ao::orrdannce with. Chapter 312 of the Texa Ta.x Code and to adopt. tine Guidelines and.
Criteria for Tax Abatement attached hereto and incorporated erein as hihtt ; and
I"'iiEREA$, a quarters r najority vote of the City Council of the City of :Pari s, "Texas i
reo uired to amend the Guidelines and Criteria for-, TaxAbatement; and
'WHEREAS, the Ci y Council elects to read.olpt the Guidelines and Criteria for Tax Abatement
adopted on January 11, 201.8 witi:nouut amendment,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL L F THE CITYOF PAJUS,
Section ..11 'The findings set out in i::iue preamble to this resolution are hereby in all throngs
approved..
Section 2. "Heine City hereby elect, to be eligible to (participate in a property tax abatement
progyrarn and approves and adopus the Guidelines and Criteria for "Tax Abatement attached hereto
and. incorporated herein as E W.A.
Sect.omn I II, This resolution utionn shall iaeoo e effective from aind after the date ofpassage.,
PASSED AND APPROVED this 13th day of ][annuuary, 2070.
StevI, i � Clifford, 14J), Mayor
ATTEST:
nice Ellis, City Clerk
APPROVED AT TO FORM:
Stepnie H. Harris, City Attorney
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
I. General Purpose and Objectives.
The City of Paris (City) and Lamar County Government (County) (collectively, herein called the
"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 infrastructure, which attracts and supports
development; and, to expanding the tax base, employment 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 guidelines.
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 State
of Texas. The facility must be currently in, or locating in the areas served by the Taxing
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 a tax abatement request will be based on the information provided in
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.
H. Definitions.
Definitions are provided as an Appendix A.
III. Designation 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 Sec. 312.401 (b)). Pursuant to Texas Tax Code Sec. 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 hearing or procedural
requirements other than those provided under said Chapter 2303.
IV. Tax Abatement Authorized.
The Taxing Jurisdictions, through their elected governing bodies, may agree in writing with the
owner and/or lessee of taxable real and/or personal property that is located in a reinvestment zone,
but that is not in an improvement project financed by tax increment bonds, to exempt from
(Readopted 01-13-2020)
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 the
term authorized by law. Such agreement will be based on the condition that the owner or
lessee of the property makes specific improvements or repairs to the property. An agreement
may provide for the exemption of the real property in each year covered by the agreement only to
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 for additional value of eligible property improvements
made subsequent to and specified in an abatement agreement between the Taxing Jurisdictions
and the property owner or lessee subject to such limitation as the Taxing Jurisdictions may require.
The additional value must exceed any reduction in the fair market value of other property of the
owner already on the tax roll within the area served by the Taxing Jurisdictions. Change in
appraised value does not qualify for abatement except in an instance where a previously vacant
authorized facility is utilized. Value added to the tax rolls must come from actual capital
expenditures.
The negotiation of tax abatement agreements will be conducted by the Paris 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, (ii) jobs retained in cases of existing employers within the
Taxing Jurisdictions, and (iii) broadening of the tax base and expansion of the economic base
(e.g. capital investment, payroll, local spending, etc.).
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
criteria.
Ehibih� Criteria for Tax Abatement
Authorized 11. An authorized facilityis used for manufacturing, research, regional distribution, regional -se rv-ices, regional
Facility
tourist entertainment, other basic industry, or any primary jobs creating industry. (See Appendix A for
definitions.)
2. A new authorized facility must be created, or an existing authorized facility must be improved, modernized
or expanded.
3. If a leased authorized facility is granted abatement, the agreement may be executed with the lessor and/or
lessee, depending upon the particular circumstances of the proposed project. If the agreement is with the
lessor, lessor shall demonstrate binding contracts with the lessee to guarantee compliance with the terms of
thea Bement.
W.______ ......... �.
Eligible
1. The property involved 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, 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 authorized facilit
2
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
4.
lnventory or supphles shall not be eligible for abasement
_ .......
Historic For historic property located in the City of Paris Historic District, see Chapter 30, Article N of the City of
Property Paris Code of Ordinances — Tax Exemption for Historically Significant Sites. Contact the City of Paris,
Community Development Department for additional information on these and other programs offered by the
City of Pans. __ __ _.._... -...
Value and 1.
_...... --- -- - ---- � ..... .
The governing bodies of the local Taxing Jurisdictions Jurisdictions will decide whether to ant a tax abatement to an
Term of
applicant, and the amount, if any, of such abatement, on a case-by-case basis and in accordance with these
Abatement
Policies, Criteria and Guidelines.
2.
The term of abatements granted under any agreement may not exceed that permitted by applicable
state law.
3.
The amount of the abatement shall be based upon a percentage (0 to 100%) of all or a portion of the
eligible property within the authorized facility.
1 4.
Abatements may only be granted for the additional value of eligible real and personal property
improvements made pursuant to and listed in the agreement between the Taxing Jurisdictions and property
owner and/or lessee, subject to such limitations as the Taxing Jurisdictions may require.
5.
Real property tax abatement may be granted only to the extent that its value for each year of the agreement
exceeds its value for the year in which the agreement is executed.
6.
If a modernization project includes the replacement of improvements within an authorized facility, the
gible
abatet shall be the of e new of
used evaluateaced unit(s).
s llimited
Abatement The criteria to prop sedprojectlap for abatement includes, but not
application to:
Evaluation 1.
The dollar amount of the increase in the tax roll.
Criteria 2.
The number of jobs created or retained by the employer involved.
3.
The possible effect on attracting other taxable improvements into the Taxing Jurisdictions.
4.
The nature of and overall effect on the Taxing Jurisdictions.
5.
The effect on the safety, health, and morals of the Taxing Jurisdictions' residents.
6.
Any substantial long-term adverse effect on the provision of the Taxing Jurisdictions' services or tax bases.
7.
Meeting all relevant zoning requirements.
8.
Consistent with the comprehensive plan of the City of Paris and County of Lamar.
9.
The types and cost of public improvements and services (water and sewer main extensions, streets and roads,
etc.) required of the Taxing Jurisdictions.
10.
The tyres and values of public improvements to be furnished by the applicant
Economic To
be eligible to receive tax abatement, the planned improvements:
Qualification 1.
Must be reasonably expected to increase the appraised value of the property.
2.
Must be expected to prevent the loss of employment, or assist in the retention or creation of jobs in the Taxing
Jurisdictions during the term of the agreement.
3.
Should not be expected to solely or primarily have the effect of merely transferring existing employment
from one part of the Taxing Jurisdictions to another without demonstration of increased future investment
(dollars or jobs) or unusual circumstances whereby without such a move employment is likely to be reduced.
4.
Must be necessary because capacity cannot be provided efficiently utilizing existing improved property
when reasonable allowance is made for necessaa v imp Tovements or relevant governmental actions.
Taxability During the term of the agreement, taxes shall be payable as follows:
1.
The base year of eligible property as determined each year by the Lamar County Appraisal District, shall be
fully taxable.
2.
The additional value of eligible property above the base year value shall be taxable in the manner described
3.
in the agreement.
The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the
real and personal property comprising the reinvestment zone.
4.
Each year, the employer, company or individual receiving an abatement pursuant to an agreement shall
furnish the assessor with such information as may be necessary to determine the amount of any abatement.
5.
Once such value has been established, the Chief Appraiser shall notify the affected Taxing Jurisdictions
which levy taxes on such property and also notify the Paris EDC.
6.
The employer, owner or lessee of eligible property requesting tax abatement within a reinvestment zone
shall, prior to the commencement of eligible property improvements, agree to expend a designated sum of
more _and to create or retain a certain number of Jobs, or annual ayroll as further defined below.
(IlReadopted 01-13-2020)
POLICY ST"ATEMENT
CRITERIA—AND GUIDELANES FORT AXABATEMENT
. . ...... . _, O�p#zllnvestment,.Pa old and Job Creation Criteria
. . ... . ...... . ............ ... . ---- - . . ........... . . . . .... ....
. ...... . . ...... ........... ........... . . . .... ...... . ...... . - - ---- . . . ..... .. ...... . . —11---,",
ababnnent may be made available to employers Who are increasing new capivAl investment and cre-a-ti n --g--
jobs with reV.eet to
anauthori7ed fhaility located anywhere mathin the area served by the 'l7axing Jurisdic-tionsbased on theEollowing cn.teria.
1. To be eligible for any tax abatement, there mustlie an minimum capital investment inMe autlu)rized facility of$ 1,000,000 and
at least ten (10) new jobs added to the new employer's labon force.
1 Any project with a cpiital investment of more di an t-wenty five million dollars ($25,000,000), AND accompanied by an
newly created minimum. annual payroll oft o and one-half million dollars ($2.1500:,000), OR creating more diian two
bundred twenty-five (2125) jobs will be individually negotiated.
1 As specifiediin state law, no abatemtmt will be granted for more than 10 yea , and fl -ie toW abatementshall riot exceed
.1.0011/0.
4. knewly created business must be (or will be) located wit1iinan enterprise one or a desigmited reinvestment zone.
5. The taxii�g jurisdons recognize a sigrifficant difference in the valuation of real proper t y -versus pensonal prqperty.
Because of depreciation schedules, the abatement of personal prol.:=ty could result in a tax exemption. For this rewon, the
abatement sebedulefor personal property versus real property may be different, Each. industrial account is In at and
valued on -win. individw-A basis by the Latnar County.Appraisal District (1.,CAD). The typical d q, breciation used - for
indwstrial accokmts by LCAD is as followb:
a. Cru.. paters — 3 year life
b. Furniture& Fixtures .10 year Efe
c. 'Vehicles .7 to 10 year life, (depending on type)
& Machinery & Equipment 15y.earlife (m,,vybelonp!,ii,ror,.shorter dcl)e,,ndin onthaw type)
6. For each abatemerit request the PEDC -will evaluate the equipaient (personal property) investment and use:fia life separate
from the real estate (yea] property) investment to determine the lenLah of rthe alma ternent for aell
7. If personal property should become obsolete and bereplaced while under an abat ment agreement, the, re.placement
persond. property is not eligible for abatement.
8.. The cham below provide capital invesent guidelines to clunlify for tax,-dbalialment and the related sd.hedule and
percentage of ab aternent
Investment ($1.M minimurn in.vestment ANDIO iobs for new
Yearl
Ye�ar 2
Year 3
X.e.arl-5111 J
Ye�r 6
Ye#r 7--
50%
301ye
20%
10%
1
7�06 ['
_ 60%
400,
3 1.
F
20%
90% �
80%
70%'—
- - � 1-�6
40% 1
. . ......... -
30%
$25,000,00 1. and Above Forprojects, with capkal inve-iftent abow $2-5'AN D$2.5MM new annualpigyroll OR
creadng Pnore than.225 xewph�, the term andpercentage of the abatement are. 110th
. .. . .. . ............. - negofiabk but cannot exceed.10)wars or.100191,66.
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
9. An additional 20% abatement for new job creation is available based on the following 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 excluding
retail trade and accommodation and food services ($41,15$ annually for 2013. Source: Texas Workforce Commission
via www.tracer2xom. (Note: This represents 547 companies, 10, 470 jabs and 56% of all private sector employment in
Lamar County.)
c. The taxing jurisdictions and the company must 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 agreement.
VI. 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 Jurisdictions 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
property by constructing new improvements on its real property and/or adding new personal
property to its authorized facility which qualify for tax abatement under these Policies, Criteria
and Guidelines, such employer may be eligible for tax abatement with respect to such
improvements to its real property or its new personal property under the provisions of Article V
above, even if no new jobs or newly created minimum annual payroll are created.
In projects involving existing employers, the criteria for tax abatements for improvements to real
property and for new personal property at authorized facilities set forth in Article V above shall be
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
waived, provided state law is fully complied with.
The local taxing jurisdictions encourage existing employers to retain as many jobs and as much
existing annual payroll as is economically feasible for the existing employer, while remaining
competitive in its industry.
VII. Greenfield projects
In order to encourage the development of greenfield properties and also to be able to expedite
certain new projects, the criteria for tax abatements for improvements to real property and for new
personal property at authorized facilities set forth in Article V above shall be waived for projects
exclusively involving greenfield properties, provided state law is fully complied with.
VIII. Application Process
µ Alhcahon Process
Eligibility Any present or potential owner of taxable propertyin the Taxingns may request tax
abatement by filing a written request with the City Manager or CountyJudge,
Jude w
udg with a copy of the
a �
i
�.The
u cation o rwarded by the applicant to the Executive Director of the Paris EDC
Form application ilianha he followin,...
l consist of a completed application form accompanied by the
1.
A general description of the improvements to be undertaken together with the projected new
value to the property and the type of business operation proposed.
2.
A detailed, descriptive list of the improvements for which abatement is requested.
3.
A list of the kind, number, and location of all proposed improvements of the property.
4.
A list of the number and type of jobs created, including information pertaining to anticipated
job transfers (if any).
5.
A metes and bounds description and plat of the proposed reinvestment zone that shows all
roadways within 200 feet of the reinvestment zone and all existing zoning and land uses
within 200 feet of the reinvestment zone.
6.
A time schedule for undertaking and completing the proposed improvements.
7.
The type and value of any additional economic development incentives requested.
8.
Any other information about the proposed project as may be required by the Taxing
Jurisdictions or as deemed desirable by the T�yN fii Jurisdictions.
_.T_. �... . ..�.w _
Review 1.
All applications will be initially reviewed by the PEDC executive director.
Process 2.
An initial project briefing meeting will be conducted between the company's representatives,
the PEDC executive director, the city manager, and the county judge.
3.
The PEDC executive director will evaluate the request for tax abatement in accordance with
these criteria and guidelines and will make his/her recommendation to the Paris City Council
and Lamar County Commissioners Court for their review and possible approval.
4.
After the Paris City Council has been briefed on the proposed tax abatement offer and they
have directed the PEDC executive director to move forward, the Paris City Attorney will draft
the initial tax abatement agreement for review by the PEDC Board and representatives of
each Taxing Jurisdiction.
5.
Electronic versions of the City's abatement agreement will be provided to the County so all
agreements have consistent language, terms and conditions.
6.
Following review of the draft agreement, it will be sent to the applicant's legal counsel for
review and comment. Any changes requested by the tax abatement applicant will be
reviewed by the City Attorney.
7.
Once the Agreement is finalized, it will be placed on the PEDC Agenda for board
recommendation.
8.
Once the Tax Abatement Agreement has been acted on by the PEDC Board, the Agreement
shall be forwarded to the Paris City Council and Lamar County Commissioner's Court for
final consideration and action.
Public Hearing 1.
The Taxing Jurisdictions will 11 comply with certain public notices and hearings required 11 as
mandated by state law under the Propel Redevelopment and Tax Abatement Act prior to the �
(II RI.eadopted 01-13-2020)
POLIC11Y STATEMENT
CRITEIZIA AND GUIDELINES FOR TA-'K ABATEMENT
designation of a reinvestment zone and execution of a tax abaternent agreement.
2. The lead"I"axing Jurisdiction (typiadly the City of Paris) may adopt an ordinance designating a
tax abar=ent reffivestmentzone only after notice of a public hwiring has been published at
least ,-wven, (7) days before the date of the hearing
and aH (.Aher procedural requirt-anents of
q,�2 oftheTexas Tax Code, have been satisfied.
........... . . .......
Findings En circ vir to enterinto an agreement, the Taxing Jurisdictions mwst find that:
t. Tlae ternis of the proposed agreement comply with these Policies, Criteria, and
Guidelines,,
I There will The no substandal adverse effect on time pravrisioin of Taxing,jurisdictions' services
or tax. base,.
I 11at the planned usse of the property will not consfitute a bazard to public safiety, healdi or
morals.
4a Incident to approval of any ordinmice desig
.,nating a reinvestment zone, the '77axing
Jurisdictions sly: fid that the im1wovernents sought me feasible anti pTactical and would be a
benefdt to the ilan.d to be included in. the reffivestment one anct to time "t"axing Jurisdictions
after the expir,ation of the reernrnt.
.. ................. . . . ..... . .. . ..... .
umri
ances Re� -variance fi-om the provisions of these Policies, Criteria and Guidelines may be n.11ade
in vaiting to the 'Taxing Jurisdictions; provided, however, that iin no event shall the (ei m. of any
abatement exceed, the pffiod authoirl.,zed by app lic6le state law., Such. request -,hall inchade a
complete description. of the circumstances rexlybing a variance. Approval of a request for variance
shafi require the affih-mative vate of thme-46wihs (,3/4) of the niernbers of each of the Taxing
kwisdic,tio i4qypn
Ills_ jit:t��_�odv.
. .. . .............. . . . . ........ . . . ........ .... . . ...........
Prcqused The adoption of these Policies, Crited'a and Guideu h-es by theTaxing hrisdictiow, does not hmit
Agreements the discretion of de Taxing Jurisdictions' gciverning barn di.es to decide Whether 'to enter into a
Decided on bWxific tax abatement agreement. Nor does it limit ffieir discretion, to delegate to their employees
IndividiiW the authorill-ly to detertnine 'whether or not the Taxing Jurk-Aiction. s1bould consider a particular
Basis application or request for tax, abatement, or craatc any propedy, contract, or other legal right, fia any
person or entity to have the Ta.prom ghirisAbirtion, consider or gapmt a sipecified application or request
oTt�abate=ent.
- --l-11- -- . . . ...... ... . . . . ............ . ................ . . .
VITI—A-bmint emest Agreememit Terms and Conditions.
Appendix B provides many of the terms and oonditions to be included in, any fonnal tax
abatement legal agreement.
LX'. Amendments to Policies, Criteria and Guldefines
These Policies, Criteria and Guidelines are ef%ctive f a two (2) year period ftonn the date of
thlti,r adoptior4 unless amended earlier by the affir-Imative vote of three fiburt.1-is (3/4) of" brine
members of each governing body (Cify, Coimty).
For a to abatement application or additional hiformatinom contact:
Pans Economic Develolpmetat Corporation.
11.25 Botffiatn Street
Paril.&,, "I"exas 75460
Ph(mcr 903 784 -6964 -
Fax: 903-784-2503
Website: www.iiaristexas-Lisa.com
...... ... . ... ... ........ ..
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
APPENDIX A
Term
......... _.
Definition
..:_m
.._
Abatement or Tax
--- _ -
The full or partial exemption from ad valorem taxes of certain real and tangible personal
Abatement ...._
pro !prt p m a , _ ... .m . g economic development ��xiToses
i...,,�,w�.� . Reinvestment Zone desi ��ated.for eco., _ .,... � _.. �,,...m..
Agreement or
The written legal agreement for tax abatement between a property owner and/or lessee and
Agreements
the Cit�� ar County and Paris
mobs el
uthorized
facility gible, for. abatement fLitlis a facility used for manufacturing, research,
Commercial or
I regional distribution, regional services, regional tourist entertainment, other basic industry, or
Industrial Facility
any primary jobs creating industry (see definitions below). All authorized facility definitions
include buildings and structures, including fixed machinery and equipment used in operating
the facili(N,.
Authorized
.... _
The City Council of the City of Paris may also designate areas of the City where residential
Residential Facility
properties may be considered for abatement of City taxes only. The City of Paris will
approve their residential abatement policies, criteria and guidelines separate from these
ohcies
Manufacturing
The purpose of which is or will be the manufacture of tangible goods or materials or the_
Facility
processing of such goods or materials by physical or chemical change. Facilities
primarily engaged in assembling component parts of manufactured products are also
considered manufacturing facilities_
Regional
1p
Used primarily to receive store service or distribute goods or materials where a
P � � Y � g majority of
Distribution Facility
the goods or services are distributed to points at least 100 miles from its location in the
Taxinu Jurisdictions of Paris and Lamar County.
,�
Regional Tourist
'
_....... � . ®� , . -..
Used in providing amusemenbentertainment through the admission of the general public
lib
Entertainment
where the majority of users reside at least 100 miles from the Taxing Jurisdictions and where
Facility
the majority of users are likely to stay in the Taxing Jurisdictions for more than one day and
®
1 will therefore likely utilize local restaurants . ......... --._ .......
Research Facility
Used primarily for research or experimentation to improve or develop new tangible goods or
materials or to improve or develov the iHrodirocesses thereto
Other Basic or
Not elsewhere described, used for the production of products or services which result in the
Service Industry
creation of new jobs and bring new wealth into the Taxing Jurisdictions (e.g. healthcare-
relatedindustries .
Primary Jabs
Any industry creating "primary jobs" defined as a job that is available at a company for
Creating Industry
which a majority of the products or services of that company are ultimately exported to
regional, statewide, national, or international markets infusing new dollars into the local
Base Year Value The assessed value of eligible property as of January 1, preceding the date of execution of the
agreement plus the agreed upon value of eligible property improvements made after January
1, but before the execution of the agreement. The Base Year Value may be adjusted either up
or down from dear to year as per renditions b w the Lamar CC un v Apjpr sal District.
Employer The owner or lessee of property, who is applying for tax abatement and who will provide
w jobs_and cajntal investment within the Reinvestment Zone or within the Enter.4 rise Zone.
Reinvestment Zone An area where the Taxing Jurisdictions have decided to influence development patterns and
attract major investments that will contribute to the development of the area through the use
of tax abatement for specified improvements. These statues are found in Chapter 312 of the
Texas Tax Code.
of land desi nated as such under Chapter 2303 of the Texas Government Code.
Entex rase Zone An area„ d.. -- __ _.. .
Job or Jobs A "job" is when an individual works 40 hours per week for an employer, and in the position
y the individual is provided the benefits normally offered by the employer, such as health
insurance, vacation and some form of retirement benefit. A job is not a position filled for the
employer as a worker or employee of an employment agency or employment service. "Jobs"
also includes "Full-time Equivalent Jobs" defined below.
__ x_ .._---------- _ .
Full-time Equivalent The intention of the governing bodies is to provide a company the maximum flexibility in
(FTE) Jobs running their business and making business decisions, especially related to staffing. The
following definition of FTE will be reflected in all incentive a.°eements. An FTE is:
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Modernization
Personal Property
Real Property
Tax Abatement
Advisory Committee
1. An individual working 40 hours per week in a job defined above.
2. A number of part-time jobs where the hours worked in each such job is less than 40 hours
per week, made available by one employer and added together to total 40 hours per week.
For example, fourteen (14) part-time jobs made available by one employer where all such
part-time jobs added together require a total of 380 hours of work per week (but no such
part-time job requires 40 hours of work or more per week), will equal nine and one-half
(9.5) FTE jobs (380 hours divided by 40 hours per week equals 9.5).
3. FTE gobs do not reaiuire the em. wlom, ee to receive benefits from the ems rlo er
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,
refurbishm, re11.pairing, or deferred maintenance.
Machinery, equipment, tools, shelving or materials eligible under applicable law for tax
abatement, which can be removed from an authorized facilites
1..111 ...__
Real ProFeriy or Personal Pr( e! v defined herein that is eligible for tax abatement.
The land within an Enterprise Zone or a Reinvestment Zone, together with all improvements
and fixtures constructed or otherwise situated thereon.
The Tax Abatement Advisory Committee will be convened from time to time by the Paris
Economic Development Corporation to study, review and recommend tax abatements to the
applicable Taxing Jurisdictions in the City of Paris and Lamar County, Texas. The Tax
Abatement Advisory Committee will be composed of one person from each of the Taxing
Jurisdictions: the City of Paris (the City Manager or designee), the County of Lamar (the
County Judge or designee), Paris Junior College (the President or designee), the Chief
Appraiser of the Lamar County Appraisal District, and the Executive Director of the Paris
Economic Development Corporation. Recommendations from the Tax Abatement Advisory
Committee shall be decided by majority vote of the representatives from the three taxing
entities referenced above.
(Readopted 01 13 20 20)
POLICY STATEMENT
CRITERIA AND GUI.DELINES FOR I'AX AIIATEMENT
APPENDIX B
Aba,temont Agreernexit Terms and, Conditions
Afte,T,-,ipp�iii.,,t,h(.-,'T'axink Judsdichi ons sha'111.1 :t nal (a
an rder or resolution d a
aniuthonze
P
the executiotem of an agreemetat witti, the owner and/or lessee of the authorized facilitwhic s
y, h hall
include,bmit not be limited to the Ulowing tir,-,rms onifitions:
Pnoject
Descn.ption
Defindt
Confidenth,:.Ilhty
of Proprietwy
Information
Contract Te'luns & Conditions
The fofl.ovdng project specifics will be included:
L 'Fhelmse year value.
I Percent of inermsed vulue to be abated each,ar
Ye .
I The commencement, date and the tenmination date of almtement.
4. Amount of investment and average nung.-)er of Jobs involved duling the tenn of the
ment
5. rbe proposed -use of the authonzed facifity, nature, of construction., time schedule, plat,
pr opo description,and improvement list, as pro,6,Ied in the app lication.
6. A fisfing of the kind, uuimber, location, and costs of all proposed. improvements of the
property�,
7., A ftteinent limidng the uses of the prcpcity consistent with dic, gtmcral purpose of
encouraging deve'lopment or redevelopme-nt ofdid reinvestment, zone during, the peii!iod that,
prop
erty tax abatement is hi effect.
8. That access to the project is provided to allow for the inspection by iowe
iwTq ex,,tors and officidis irp. order to ensure that the, iMprovernents or rep. airs are made
according to the %pecifications and condition. S of the agreement.
9" That I.xroperty tax. revenue lost as a resiAt of the tax: abatement agreement will belv4.,,aptured byr
the, 'p" .inn Jurisdictions if the owner of the property fails to make the, improvements or
.repairs as provided by Itie agreement,
10Edch term agreed to by the awoer of the property.
IL A regairemext that the, (,)wner of the ptx-)perty she certily annually to the Taxing Junisdictions
ffiat ffie owneris in compliance with ea6h. applicable tenn oftlie agreement.
12. ("Ontractmi obligatiorn in the event of def hult, violation of tenns or conditions, delitiquent
taxes, rorapt ure, a(kninistration and assignment, or other provisions that may be required by
TAW lamr, or in the disicr etion. of the Taxhig Ainisdictions' governing body.
13. That the T&King Jurisdiii:,,,tions nray cancel ar modify the agreement if tlie propeay, owner
fails to cOM, 11 met. n
1� y' with the �Vea
. . ...... . . .. .. ........... ..... ............. . . . .... . . - - - -
If the Tax ig Jurisdictions 4-Jetermine that ffi e perwn or entity. receiving an ahatf.eYncnt is in default
acoording to the terras med conditions of its agreemcnt, the Taxing Jurisdictions sl:iall notify the
compway or individual in writing at the wldrtlss rAatx-,d in the agreement, arid if mch dei' nrht is not,
cured within a reasonable time specified in such notice ("cure; peniod"), then the agi exa.nemt may
be modified or terminated vAthout further notice. In the event the company m:)r individual allows
its ad valorem tues owed to the'raxing Jurisdictions to became delinquent andffils tom mnely
and pmperiyfollow the legal prom—duires :for their protest and/or conteA, or violates any of the
t=s and conditions of the ag..cement arid fOs to cure during the cuire period, the agreement then
may, be modified or tenninated without further nckice, and the agreement may provide a formula
or recapture of all ar part of the taxes abated. At any time before, the eapiration, any tax
abatern mt agmement may be tenninated by mutual consent. of all pardes involveAl in. the same
Mumer t, the a eni was executed,
- --------------------------- - - ----- ----
TAffirmation that is provided to a Taxing harisdiction in connection with m, apphcation or reque-st
fortax abatement under these Policies, Cniteria and Guidelines, and that describes the specific
processes or busine%m aztivitim to be conducted or the equipment or other property to be located on
the property for Which tax abatement is soughtis confidentiad and not mNect to public disclosure
Until the agrttrnent is executed. Skx,-,h irdbrmation in the custody af the Tax-ingJarisdictiodms after
the pgreen-�.� is execated is not confidential here-unden
- -------- - -------- . ..... ........ . . ...... ... . . ...... 111- ............... ..... ...................... . . ...............
The agm�nwnt %'hall s late that emplqyces and( or designated rqiresp��ative of 03C
S
... ...... ..... ........ . . ......
M
(Readopted 01-13-2020)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
IF
Jurisdictions will have access to the reinvestment zone during the term of the agreement to inspect
the authorized facility to determine if the terms and conditions of the agreement are being met. All
inspections will be made only after the giving of at least twenty-four (24) hours' prior notice
and will only be conducted in such a manner as to not unreasonably interfere with the
construction and/or operation of the authorized facility. All inspections will be made with one or
more representatives of the company or individual and in accordance with its safety standards.
Upon completion of construction, the Taxing Jurisdictions shall annually evaluate each authorized
facility receiving abatement to ensure compliance with the agreement and report possible
violationsu'eement to the Taxing Jurisdictions govemin bodies.
-tune of the
M odifications
anbef ore the expiration of an agreement made under these Policies, Criteria and
of Agreement
Guidelines, the agreement may be modified by the parties to the agreement to include other
provisions that could have been included in the original agreement or to delete provisions that
were contained in the original agreement. The modification must be made by the same procedure
by which the original agreement was approved and executed. The original agreement, however,
may not be modified to extend the term of the agreement or the term of the abatement granted
therein beyond the time permitted bar State law.
Assignment
An agreement may be assrgned to a new owner or lessee of the authorized facility only with the
prior written consent of the Taxing Jurisdictions. 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, and the Taxing Jurisdictions' approval shall
be subject to the determination of the financial capability of such assignee. 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 is indebted to the Taxing Jurisdictions for ad valorem
y taxes or other obligations gattons, or if any event of default under the agreement remains uncured.
'
1 Each Jurisdiction shall be le for review, and g
T
Contract
tax abatement agreements authorized by them axing Jurisdictions under these Policiesf
Review,
Criteria and Guidelines. These responsibilities shall include annually verifying participants in
Monitoring and
tax abatement agreements are in full compliance with the terms of the agreement, including
Reporting
completion 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 participants. 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
monitoring and compliance activities and the status of all existing abatement agreements.
IF
Ig
\ < ■< :
w/.
Annual Certificate of Coilri.pliaiince/Non-Coinplion ce Year x,,,,2021
'TaxAbatement Agreement ("the Agm:'Illment")
Betweein the City of Paris,']'. exas
And I.Jonshead Specialty 117ire & Wheel, 1AX
Dated janivary 22, 2020
THE STA.1'rE OFTEXAS §
COUNTY OFLAMAR
INITIAL WHIE'RE APIM01"RIII'ATE:
no
.......... —Lionshead. Specialty Tire & Wheel, UC (the "Cornu pany") hereby certifies that,
(1) All ad valoreni taxef, have 11,)een paid. to City and all other taxing entities.
By April 15, 2021, the Company hii.-ed ii'lo fewer than ten (10) full dryle,
1les to operate the Paris Facility arid maintained those
ernployees. The total number offfill-time enipl,oyees working at the
Facility as of the date of this report is .. __ ..........
(3) 'The Company has contirmously operated the Property and
linprovernents describled in the Agreement as a tire an wheel
assernbly and warehousing plant.
(4) The Cw-npany submits herelAlith and attaches hereto copies of the
Employer Reference su.mniary page of its Texas Workforce
Commission Quarterly Reports for the Paris Facility for each quarter of
20121.
(6) All oth.er terry -Is and c(,3nd3tion.s of this Agreement have been complied
Witt].
............... - ................. Lioinshead Specially 11.1re & Wheel Company, LLC certifies that, the company is
not in c(nnl,,.)Jiance with its agreement with it of Paris for the year . . ......................... .
Please Circle the niurnl)er ofthe it ern(s) above in which you believe that the Company
has failed tin comply aid state in hat was compliance with the term or ternas were
not met. Attach. additiona.1 Pages if necessary.
Certificate of Compliance/Non-Compliance
Page 2
STATE OF TEXAS §
COUN,'ry OF LAMAR §
BIII�',TORE ME, ffie undersigned notary, on this day personally appeared
the afflant a. persoii, whose identity is known to, rne. After I administered
an oath to affiant, affiant testifie&
"My narrie is I am, capable of making this verification. I have read
tbe foregoing Certifk:ate of Compliance/Non Corniphance. The facts stated in it are withill.
nanny personal knowledge and are tn.ie and correct, and I further certify, that the En-.iplo,yer
Deference Surnmary pages are true and correct copies of those reports filed with the Texas
Work -force (',ornmission."
Signature of 0-.)rnpany Representative
Position/Title
Sworn to and subscribed before me this the day of . . . ....... . ............ . .._ ,, 20®e
Notary Public, State of Texas
Annual Certificate of Compflance/Nm Compflarice Year, 2--2022
Tax,Abaunaient Agi�-eejnent ("the Agreement")
Between the City, of Paris, Texas
And. Lionshead Specialty rir(,:� & Wheel, I.JJC
Dated Jaiiatiary 22, 2020
THE STATE OF 'TEXAS §
COUNTY OF LAMAR §
INITIAL WHERE Al"PROPRIATE.-
M
...... . .... ........ . ....... . . 'Lionshead. Specialty Tire & Wheel, LLC (the "Company") hereby certifies that:
(1) All ad valorem taxes have been I.mid to City aiiad all the taxing entities,
(2) By April 15, 2022, the Couipany hired no fewer than five (5) full time
erriployees to operate t1le Paris Facility aind maintained those
employees as well as the ten (10) employees hired in2021. T'lle total
num.L.)er of f"u.11 time ernployees working at the Facility as of the date of
tfiis relport is .vu
.............
(3) The Company has continuously operated the Properry and
Improvements described in. the Agreerneii-A as a tire and wheel.
assembly andwarehousing plant.
(4) The Company subrnits herewith, and attaches hereto copies of the
Ernployer Reference sum.mary page of its I'exas Workforce
Commission Quarterly Reports foz- the Paris Facility for- each quarter, of
2022.
(6) AI] other terms and conditions of this Agreement have been coii,nphed
With.
. ....... . ........................ I.Jonshead Specialty Tire & Wheel Company, U,Ccertifies that t1li.e company is
not in compliance with its agreement With City of Paris for the year ............. . ......... -.,.
Please Circle the nurnbeii- of the itern(s) above in which,you I.,)efieve that the� Company
has failed, to comply and state inwhat way compfimwe with the term. or terms were
not met, Attacli additional pages if'riecessary,
Certificate of Compliance/Non-Compliance
Page 2
�FTATE OF TEXAS §
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 m....._._._y...............__ �.._� I am capable of making this verification. I have read
the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within
my personal knowledge and are true and correct, 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 _ ............... , 20—.
Notary Public, State of Texas
Annual Certfficate of Compliai-Ice/NOn-Complian.ce Year 3 -2023
Tax Abaternent Agreement ("the Agreement")
Between. the City of'Paris, Texas
And I,ionshead Specialty 'Tire & Mee], ILIC
Dated January 22, 2020
THE S"'J'ATE OF "I'EXAS §
COUNTY OF LAMAR §
INITIAL WHERE APPROPRIATE:
RM
.I...._.. . . ........... Lionshead Specialt�y ""ire & Wheel, 11C (the "Company") hereby certifies that.
(1) All ad valorem taxes have been paid to City and all other taxing entities,
(2) By April 15, 2 012 3, the Company hired no f6wer than three (3) fufl-th,,ne
elo,yees to operate the Paris Facility at -Ad maintained those
employees as well as the twelve (1.2)employees hired in 2021. arid
2023 The total number of full-time erloyees working at tl.,Ie Facility
as of the date of this report is .....
.... ...................... 1.
(3), "'I"he Company has continuously operated the Property an.d
Improvements described in. the Agreement as a tire and. wheel
assembly and warehousing plant.
(4) The Company submits herewith and altaclies flereto copies of the,
Employer- Reference surnrnary page a its "re :a Workforce
Cornmiscion Quarterly IlReports for the Paris Facility for each quarter of
2023.
(6)All other, terms and conditions of this Agreement have been. complied
witli
................. . .... . Lionshead Specialty Tire & Wfie(,d Coa- pany �ertif
I . , LLC c fes that the company is
not in cornpfid,:Ince with its agreement with. City oflIaris for the year ............ . .........................•
Please Circle the nu mbeirofthe item(( ) above in which you believe that the Company
has failed to cornplY and state in, what way compliance with the term, or terms were
not met,., Attach additional pages if necessary,,
WIM-111A
Page 2
STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned. notary, on this day personally appeared
— ------ the affiant, a J„)erson. whose identity is known. to me., After I administered
an oath. to affiant, affiant testified:
"My narne is i... . ..... I am capable of rnaking this verifl.cation. I have read.
the foregoing Certificate of Coml ' iliance/Non-Compliance. The facts stated in. it are within
my personal knowledge and are true and. correct, and I further certify that the Employer
Reference Summary pages are, true and correct cor)ies of those reports filed with theTexas
Workforce Comi-nission.”
Signature of Company Representative
Position/Title
Sworn to and subscribed before me this the — day of -- ........................—, 20—.
Notary Public, State of Texas
Annual Ceirtificate of CoiTipliance/No�n.Coin�plian.ce Year 4 -2024
Tax Abatement.Agreernent ("the Agree. ment")
BeLween the City olf Parisjexas
And Lioiiishead Specialty, Tire & Wbeel, LIC'
Dated. January 22, 2020
THE sill OF TEXAS §
CO UNTY OF LAMA §
lNrr1AL WHERE APPROPRIATE:
MR
...... . . . ........... —Li onshead Specialty Tire & Wheel, LLC (-the"Cornplany") hereby certifies that::
(1),All ad valorem taxes have been plaid to City and a.11 other taxing entities,,
(2) In 2024, the Company inaintained no fewer thari. fifteen. (15) full. time
employees to operate the Paris Facility, The total nwnber of full- tin -le
employees working at the Facility a,s of the (Jate of this report is .........................
(3) The Company has continxiously operated the Proper and
Improvements described in the Agreement as a, tire and'Y wheel
assembly and wareh.ousfi.,ig plan.r.
(4) l Conipany submits herewith and attaches heireto copies of the
Ern. ployer Reference summary page of its 'TexasWorkfor-ce
Commission Quarterly Relports ft)r the Paris Facility. for each quarter of
2024.
(6) All other terms and con.ditions of this Agreement have been complied
with.
. ......................... . .... -Lionsh[eadSpecialty "I'ire & Wheel Company, LLC certifies that the company is
not in compliance with its agreement with City of Paris for the year ..... ....................
Please Circle the nuniber of'the item(s) above inwhich, you 11'.),elieve that the (,'om.pany
has failed to comply, and state in. what way comphaii.i.ce with the teirm or tertris were
not met. Attach. additional ]j,-)a,ges if necessat°y.
Certificate of Compliance/Non-Compliance
Page 2
YEj-jLFI(�A:.]][0,N
STATE OF TEXAS §
COUNTY OF l.AMAR §
BEFORE ME, the undersigned notary, on this day personall'y appeared
— -------t he affiant, a person. whose identj�y is known to me. After- 11[ administered
an oath. to affiant, affiant testifli.(-.,,&�
"My iiarne is ... - I am capable of ma this verification. I leave read
the foregoing Certificate of CoTnpliarice/Noti,-.Coirnpll,i,ance,. I'he facts stated in it are within
my perSOMI knowledge and are tr,ue and correct, and I further certify that the Em.1-Aoyer
Reference Summary pages are true and correct copies of those reports filed with. the Texas
Workforce Coinmission."
Signature of CornpanY r Representative
Position/Title
Sworn to and subscribed before me this the . ........... day of ... . ....... . ..... __, 20—.
Notary Public, State of Texas
Annual Certificate of Compliance/Non-Compliance Year 5- 2025
J'ax Abatement Agl-eernent ("the Agreerneirit")
Betweeii the City of Paris, Texas
And Lionshead. SpecialtyTire & Wheel, 11C
Dated January 22, 2020
THE' STATE OF TEXAS §
COUNTY OF 1A.MAR §
INITIAL WHERE APPROPRIATE:
no
. ........................ . ............. Lionshead Specialty Tire & Wheel, LLC (tem. e "Comlmny") h.ereby certifies that:
(1) All ad valorem. tax�es have been paid to City and all othertaxing entities,
(2) In 2025, the Company maintained no few(,,r than fifteen (15) full.-tirne
employees to operate the Pax -is Facility. 'The total nUmber cmc' full time
employees working at the Facility as cmc tem date of this report is....
(3) Tl -ie Cornpany lias continuously operated the Property and
Improvements described in the Agreernent as a tire and Wheel
assembly and warehousing plant.
(4) The Company submits herewith and. attaches heret(,:) copies of the
Employer Reference summary page of its Texas Workf6rce,
Commission Quarterly Reports f6ir the Paris Facility for each quarter of
2025.
() All other terms and conditions cmc this Agreement have been complied
with,
. ............
_...P_ flmmmnshecialty Tire & WheelConapany, LLC certifies that the conapany is
not in compliance with its a reernerit with City of'Paris for the yeaT, . ..........
9 ..................._...w
Please Circle the number of the it above �n,%which you believe that t[je Company
has failed to cornply and state in what way cornphance with, the term or terms were
not met. Attach additiorial pages if necessary,
STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned notary, on this day personally appeared
the affiant, a person whose identity is known tome. After I administered
an oathtoaffiant, affiant testified:
"My name is —, . ..................._ ......... ..__........ ". I am capable of making this verification. I have read
the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within
my personal knowledge and are true and correct, 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 .................... _,.......... _... 20_.
Notary Public, State of Texas
Annual Certificate of Compl�iance/Noyiii.-Coirnplliance Year 6-2026
Tax.Abatement Agreement ("the Agii-ec-.!ment")
3
Between the it of as s,
And I Jonshead Specialty Tire & Whee1jIX
Dated January 22, 2020
THE STATE OF TEXAS §
COUNTY OF L §
INIIIAL W'11HERE APPROPRIATE:
M
—I.ionshead Specialty "Fire & Whec.l, I,LC (the "Compan'y".) hereby certifies that:
(1) All ad valorein taxes have been imid to City and all. other taxing entities.
(2) In 2026, the Company maintained no f6wer than fifteen (1.5) fiAl-time
employees to operate the Paris Facifity The total nurn.ber. of fiffl-tirne
emj.)Ioyees working at the Facility as of the date of this report is _......_........_µ
(3) The Conipany has continuously operated the Propey and
Improvements described in. theAgreement as a tire and wheel
assembly andwarehousing plant'.
(4) The Cornpany submits herewith and. attaches hereto copies of the
Eniployer Reference sumniarry page of its Texas Workforce
C'omrnission Quarterly Reports for the Paris Facility for each quarter of
2026
(6) All other terms and. conditions of this Agreement have been complied
with
I . .... Lionshead. Spec ialty Tire & Wheel Company, LIC certifies that the company is
not in compliance with its agreement with City of Paris for the ear
........................................... ...
Please Circle the number of the ,.^ item(s) above in. which you. believe that the Compaiiay
has failed to comply and state in What way compliance with the tern'.1. or terms were
not met. Attach a(Iditiorial pages if necessary,
2222
• • • r • •
Page
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 .2_,222. , .. 2--I. I am capable of making this verification. I have read
the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within
my personal knowledge and are true and correct, 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 204.
Notary Public, State of Texas
kianual Ceirtificate of Compidian.ce/Non Compliaince Ye ar 7--2 02 7
11'ax.Abateineiiiit Agreernent ("the Agreement")
Betmfeeir� the City of'Paris,,rexas
And Lions headSpeciall.ty 1111re & Wheel, LIC
Dated January 22, 2020
THE STATE OFTEXAS §
COUNTY OF LAMAR, §
INITIA1, WHERE APPROPRIATE
An
-Lionshea.d. SpecialtyTire & Wheel, UC (the "Co mpaiiay") herelby certifies tfl.at:
(1) A11.1 ad valorem. taxes have been paid to City and all other taxing entities.
(2) In 2027, the Company maintained no fewer than fifteen (1-5.) full tin�ie
employees to operate the Paris Facility The total number of fiAl-tirne
employees working at the Facility as of the date of this report is
(3) The Cornpany has con dnw:)tisly operated the Property arid
Im,provements described psi i the Agreement as a Ur e and wheel
assembly andwarehousing plant.
(4) The Company submits herewith and attaches hereto copies of the
Eniployer Refi,�rence summ.ary page of its T'exansa Workforce
Comrnis�-.;ion. Qsiarterly Reports for the Paris Facility fi:)r each quarter of
2027.
(6),All other terms and conditions ofthis Agreement have beeirl compfied
with
Specialty Tire & "app C
wiorn]parry LIX certifies that the conipany is
rrot in compfiance with its agreern.eirit, th City. of Paris for the yeai . . .......... I . ...........
Please Circle the ra,irriber oft e iteni(s) a.11:)ove in which yoti, believe that the Cor.lipany
�r
has failed to comply arid state in what way compliance with the teryll'i ol- ter-nis wel-e
riot met. Attach additional pages if necessary,
-C-effiTi-ca-t-e-o-T-C-o-m-pffa-n-c e/I on -C ompi ianc,;�
Page 2
VERIFICATION
STATE OF I'EXAS §
COUN"I'YOF LAMAR, §
BEFORE ME., the undersigned notary, on this day personally apj,.')ea.red
.t
-- - ----------- ----- - — the afflant, a person, w1hose identity is kn.own, to Afeir I a.d.ministered
an oath a to affiant, A , 1. - jant testifie&
"My narn.e is - ------ I capa.11L.Ae of making this verification. 1. have read.
the foregoing Certificate of Comphanceffion Couiphance, '"I"he facts stated. in it are wftllain
inY person.al knowledge and are true and correct, and, 1. further certify, that the Ern.pe-rjoy
'
II.efeireii:-A.ce Si.mim.ary pages are true and correct col,)ies of those reports flied with the 1'exas
W'orkf(..)rce C"orn.m.ission."
SignIature olf Corni?any lZepresentative
Position/Title
Sworn to and subscribed before me this the —day of-,, ,-1,20-,
Notary Public, State of Texas
f�l� � J»� � I% J / F 17
/w
CERTIFICATE OF COMPLETION
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 October 23, 2017, with LIONSHEAD SPECIALTY TIRE & WHEEL, LLC, for
certain improvements and other equipment (the "Improvements") to be installed on
property plant located in Paris, Lamar County, Texas, said Improvements 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 the calendar
year 2020 have in fact been completed as provided for in the Agreement and that the
Company has complied with all other terms of the Agreement including those related to
employment levels.
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 equal to 100% in years 2021 and 2022; 75% in years
2023 and 2024; 50% in years 2025 and 2026; and 25% in the year 2027, 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, 2020,
which is the year in which the Tax Abatement Agreement was executed, as recited in the
Agreement. The tax abatement will extend for a duration of seven (7) years, with the tax
abatement beginning January 1, 2021, and ending December 31, 2027®
APPROVED this day of „
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney