08 - Re-Establishing Reinvestment Zone 2015-1 as Reinvestment Zone 2020-1Item No. 8
memorandum
TO: City Council
Gene Anderson, Interim City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: REAUTHORIZATION OF RESIDENTIAL REINVESTMENT ZONE
DATE: February 3, 2020
BACKGROUND: In 2013, council authorized a reinvestment zone for the purpose of granting
residential tax abatements. Said reinvestment zone included City Council Districts 1-5, and was
designated as Reinvestment Zone 2013-1. Council expanded the reinvestment zone in 2015 to
have it include all council districts. The expanded reinvestment zone was named Reinvestment
Zone 2015-1. Under the Texas tax code, reinvestment districts expire 5 years after creation but
may be renewed. Since 2013, the city has granted 7 residential tax abatements, all granted in 2015,
and all now expired. Last year, council reaffirmed its desire to participate in residential tax
abatements and readopted the criteria and guidelines regarding such abatements.
STATUS OF ISSUE: Should council wish to continue the residential tax abatement program, we
will need to reauthorize Reinvestment Zone 2015-1 for another 5 years. A public hearing must be
held prior to renewal. I have prepared an ordinance reauthorizing the zone and naming it
Reinvestment Zone 2020-1. Council will need to reaffirm its desire to participate in such
abatements and readopt criteria and guidelines in 2 02 1.
BUDGET: Based on prior years, there should be minimal impact to the budget.
RECOMMENDATION: Conduct a public hearing and adopt an ordinance creating residential
Reinvestment Zone No. 2020-1.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS DESIGNATING
THE CITY LIMITS OF THE CITY OF PARIS, TEXAS, MORE PARTICULARLY DESCRIBED
IN EXHIBIT "A" ATTACHED HERETO, AS REINVESTMENT ZONE NO. 2020-1 FOR
RESIDENTIAL TAX ABATEMENT; DESCRIBING THE BOUNDARIES THEREOF;
PROVIDING FOR ELIGIBILITY REQUIREMENTS FOR TAX ABATEMENT WITHIN SAID
ZONE; PROVIDING REQUIREMENTS FOR TAX ABATEMENT AGREEMENTS AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, on October 14, 2013, the City Council of the City of Paris, Texas, enacted
Ordinance No. 2013-036 creating Reinvestment Zone No. 2013-1 for Residential Tax
Abatement in City Council District Nos. 1 - 5 as depicted in the map included with
Ordinance 2013-036 as authorized by the Property Redevelopment Tax Abatement Act,
Chapter 312 of the Texas Tax Code, to promote the development or redevelopment of a
certain contiguous geographic area through the use of tax abatement; and,
WHEREAS, concurrent with Ordinance No. 2013-036, the City Council also
approved Resolution No. 2013-036 electing to be eligible to participate in a residential tax
abatement program and approving Guidelines and Criteria for Residential Tax Abatement
Program as required by statute; and
WHEREAS, on February 9, 2015, the City Council passed Ordinance No. 2015-002
amending Reinvestment Zone 2013-1 for Residential Tax Abatements to expand it to
include all Council Districts in the City and designated the new reinvestment zone as
Reinvestment Zone No. 2015-1; and
WHEREAS, on January 9, 2017 and April 22, 2019, the City Council approved
Resolution 2017-001 and Resolution 2019-013 respectively reauthorizing the City to
become eligible to participate in residential tax abatements and approving guidelines and
criterial for the residential tax abatement program; and
WHEREAS, pursuant to Texas Tax Code Section 312.203, the designation of a
reinvestment zone is effective for a period of five years; and
WHEREAS, the City Council continues to desire to participate in a residential tax
abatement program in the City of Paris and desires to reauthorize a reinvestment zone for
a contiguous geographic area comprising City Council Districts 1-7 as depicted herein as
Exhibit A which is incorporated herein by reference and to designate said zone as
Reinvestment Zone No. 2020-1;
WHEREAS, a public hearing before the City Council was called on January 27, 2020
at 5:30 p.m., such date being at least seven (7) days after the date of publication of the
notice of such public hearing; and,
WHEREAS, the City held such public hearing after giving written notice of said
hearing to all taxing units overlapping the territory inside the proposed reinvestment zone;
and
WHEREAS, at the hearing the City invited all interested persons to appear for or
against the creation of the reinvestment zone, the boundaries of the proposed
reinvestment zone, and the concept of residential tax abatement in the proposed
reinvestment zone.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
SECTION 1. Definitions. In this Ordinance, the following words shall be defined as
follows:
(a) Improvement shall include, for the purpose of establishing eligibility under
section 312.202, TEX. TAX CODE, new single-family construction and expansion or
modernization of existing single-family structures.
(b) Taxable Real Property shall be as defined in the Texas Property Tax Code and
shall not include personal property located in the reinvestment zone.
(c) Base Year the base year for determining increased value shall be the taxable
value of the real property and any fixed improvements as of January 1 of the year in
which the tax abatement is executed.
SECTION 2. Determinations. The Paris City Council, after conducting a public
hearing, receiving evidence and testimony from all persons wishing to be heard, hereby
makes the following findings and determinations:
(a) That a public hearing on the adoption of the Reinvestment Zone has been
properly called, held and conducted and that the required notice of such hearing has
been given to the public and to all taxing units overlapping the territory inside the
proposed reinvestment zone;
(b) That the boundaries of the area of the reinvestment zone shall be the area
described and depicted in Exhibit A which is attached hereto and incorporated
herein by reference;
(c) That the creation of the Reinvestment Zone for residential tax abatement with
boundaries as described and depicted in Exhibit A will result in benefits to the City
and to the land included in the Reinvestment Zone and the improvements sought are
feasible and practical;
(d) That the Reinvestment Zone, as described and depicted in Exhibit A, satisfies the
criteria for the creation of a Reinvestment Zone as set forth in Section 312.202 of the
Act;
(e) That the Reinvestment Zone as defined and depicted in Exhibit A meets the
criteria for the creation of a reinvestment zone as set forth in the City of Paris
Guidelines and Criteria for Residential Tax Abatement;
SECTION 3. Creation of Reinvestment Zone. Pursuant to the Property
Redevelopment and Tax Abatement Act, Chapter 312 TEX. TAX CODE, the City Council of
the City of Paris hereby creates and designates a Reinvestment Zone for residential tax
abatement encompassing the areas as described and depicted in Exhibit A which shall be
known as Reinvestment Zone 2020-1 of the City of Paris, Texas.
SECTION 4. Term. The term of Reinvestment Zone 2020-1 shall be for a period of
five (5) years and may be renewed for successive five-year terms.
SECTION S. Eligibility for Tax Abatement. To be eligible for residential tax
abatement within City of Paris Reinvestment Zone No. 2020-1, a project shall:
(a) Meet the standards set forth in the City of Paris Guidelines and Criteria for
Residential Tax Abatement program;
(b) Be located wholly within the reinvestment zone as established herein;
(c) Not include property that is owned or leased by a member of the City Council of
the City of Paris or by a member of the Planning and Zoning Commission;
(d) Conform to the requirements of the City's Zoning Ordinance and all other
applicable laws and regulations;
(e) Have and maintain all land and improvements located within the designated
reinvestment zone, appraised at market value for tax purposes.
SECTION 6. Tax Abatement Agreement Requirements. All agreements for
abatement of taxes within Reinvestment Zone No. 2020-1 shall comply with Section
312.205 (a) of the Act and must:
(a) List the kind, number and location of all proposed residential improvements to
the property;
(b) Provide for access to the property and authorize inspection of the property by
municipal employees to insure that the improvements are made according to the
terms, conditions and specifications of the Agreement;
(c) Limit the uses of the property consistent with the general purpose of encouraging
the development and redevelopment of the Reinvestment Zone during the period
that property tax exemptions are in effect; and
(d) Provide for recapturing property tax revenue lost as a result of the Agreement if
the owner of the property fails to make the improvements or maintain the
improvements as provided in the Agreement.
(e) Require the owner of the property to certify annually to the governing body that
the owner is in compliance with each applicable term of the Agreement;
(f) Provide that the governing body of the municipality may cancel or modify the
Agreement if the property owner fails to comply with the Agreement.
SECTION 7. Severability. That it is the intention of the City Council of the City of
Paris that this ordinance and every provision hereof, shall be considered severable, and the
invalidity or partial invalidity of any section, clause, or provisions of this ordinance shall
not affect the validity of any other portion of this ordinance.
SECTION 8. Effective Date. This ordinance shall become effective from and after its
passage and publication as required by law.
PASSED AND ADOPTED this 10th day of February, 2020.
Steven 1. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
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