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13 - Brown 5 In 5 Infill Developmenmt Agreement - LCAD 10486-88 Lots 1-3 Block 2 Campbell AdditionItem No. 13 Memorandum TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Brown 5 In 5 Infill Development Agreement — LCAD's 10486,10487 & 10488 Lots 1, 2 &3, Block 2 Campbell Addition DATE: April 11, 2022 BACKGROUND & DISCUSSION Attached please find the draft agreement between the City and Mr. Jeffery S. Brown for the construction of 3 new duplexes. Attached are examples of the new homes Mr. Brown proposes to construct on these properties. Mr. Adam Bolton is the General Contractor for the project. The agreement spells out all the requirements under the 5 In 5 Infill Development Program Guidelines. Mr. Brown and Mr. Bolton plan to attend the meeting on Monday night and present their building plans under the agreement to the City Council. Recommendation Approval of the 5 In 5 Infill Development Agreement with Jeffery S. Brown is recommended. 11'aZlazny mmme IN PARIS, 'TEXAS P0.80X919 • PARISS TEXAS 75461-0919 • PHONEDOS-785-8655 WILLIAM COLEMAN EXHOUMM VICE PRESMMr I COMPLIANCR OFFICE& March 9, 2022 City of Paris Attn: Andrew Mack Director of Planning and Community Development 150 SE 1s1 Paris, TX 75460 Ref: Shane and Nicki Brown Pre -Approval Mr. Mack, This letter is to Inform you that Shane and Nick! Brown have been pre -approved for a loan to construct three duplexes (six units) on property located at the 1200 block of S.E. 12th St. Total cost of the project will be approximately $ 551,500.00 with an estimated construction period of two years. This pre -approval Is subject to the appraisal justifying the loan amount and satisfactory title documentation. Please contact me if you have any questions regarding this matter. Sincerely, William H. Coleman Executive Vice President RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT AGREEMENT AND TAX ABATEMENT AGREEMENT WITH JEFFREY S. BROWN; 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 Jeffery S. Brown providing for a an Economic Development Agreement and Tax Abatement Agreement (the "Agreement") under the 5 in 5 Housing Infill Development Program (the "Program") adopted by the City Council on January 10, 2022, a copy of which Agreement is attached hereto as Exhibit A and incorporated herein by reference; and, WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits eligible for the Residential Tax Abatement Program; and WHEREAS, the property defined in the Agreement and improvements to be made under the Agreement is situated within Reinvestment Zone 2020-1 and within the Program Area described in the Program; and WHEREAS, the contemplated use of the property, and the improvements to be installed thereon 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 adopted on January 10, 2022 and all applicable laws; WHEREAS, the City Council also wishes to offer the additional development incentives set forth in the Agreement pursuant to Chapter 380 of the Texas Local Government Code, and WHEREAS, the City Council finds that the incentives offered in the Agreement will encourage development in the Program Area described in Resolution 2022-003 through the provision of much needed housing stock for the growing labor force in the City; and 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 set forth in the Program and should be approved, and that the City Manager 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 Economic Development Agreement and Tax Abatement Agreement between the City and Jeffery S. Brown, 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. 2022-003 and will lead to the economic development of the Program Area described in said Resolution No. 2022-003. 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 City Manager 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 Exhibi 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. PASSED AND APPROVED this 11th day of April, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE STATE OF TEXAS COUNTY OF LAMAR ECONOMIC DEVELOPMENT AND RESIDENTIAL TAX ABATEMENT AGREEMENT This Economic Development and Residential Tax Abatement Agreement (hereinafter the "Agreement) is entered into by and between the CITY OF PARIS, TEXAS, a home rule municipality, situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "CITY'), and JEFFERY S. BROWN (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on January 10, 2022, the City Council of the City of Paris, Texas passed Resolution No. 2022-003 stating its intent to establish 5 In 5 Housing In -Fill Development Program (hereinafter "the Program") including a low cost land sale and residential tax abatements and adopting guidelines and criteria for the Program; and WHEREAS, Resolution 2022-003, City Council designated an area within Reinvestment Zone 2020-1 as being eligible for the Program; and WHEREAS, on April 22, 2019, the City Council approved resolution 2019-013 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criteria for the residential tax abatement program; and WHEREAS, the Program has additional criteria and guidelines for participation in said Program, including criteria and guidelines for eligibility for residential tax abatements; and WHEREAS, Owner has submitted an application for a 5 In 5 Housing In -Fill Development project to construct three (3) new duplex structures for a total of six (6) dwelling units at the above described properties in Paris, Texas (hereinafter "Improvements"); and WHEREAS, city staff has reviewed the application and the location of the above described residential duplex improvements (hereinafter "Improvements") and has determined that the property is located within the boundaries of the defined geographic area and meets the requirements for Improvements set forth in the Guidelines and Criteria for the 5 In 5 Housing In - Fill Development Program as set forth in City Resolution No. 2022-003. NOW, THEREFORE, in consideration of the terms and conditions referenced herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City, and Owner, (collectively referred to as "Parties") hereby mutually agree as follows: Component Parts This Agreement comprises two component parts, including an economic development agreement pursuant to Texas Government Code Chapter 380 and a residential tax abatement agreement pursuant to Texas Tax Code Section 312. Terms Applicable to both the Economic Development Agreement and the Residential Tax Abatement Agreement: I. The Properties—Areas to be Improved 1.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Properties located in Paris, Lamar County, Texas more fully described in Exhibit 1 attached hereto and incorporated herein by reference, which Property is within Reinvestment Zone No. 2020-1 and within the area set forth in the Program: • Part of the Larkin Rattan Survey, being Lots 1, 2, and 3 of Block 2 of the Campbell Addition to the City of Paris, County of Lamar, as recorded in Plat Book 1, Page 17, of the Deed Records of Lamar County, Texas, as more fully set forth in Exhibit 1 hereto, which is incorporated by reference as if fully set forth herein. II. Consideration --Improvements 2.1 The Improvements to be completed consist of constructing three (3) new residential duplex structures upon the above described parcels and as more fully described in the application for the Program attached hereto and incorporated herein as Exhibit 2 and incorporated herein by reference. Said Improvements must be completed within the term of the Economic Development Agreement, set herein to expire on April 10, 2027. 2.2 The total estimated value of the Improvements to be constructed on the above - referenced parcels is FIVE HUNDRED SIX THOUSAND, NINE HUNDRED AND TEN AND NO/100 DOLLARS ($506,910.00). 2.3 Owner shall obtain City approval for all necessary platting (if required) and plans, building permits, green tags and a Certificate of Completion from the City of Paris. 2.4 Owner shall allow city inspectors' access to the Property and Improvements throughout construction and completion of Improvements. 2.5 Owner agrees and covenants that it will diligently and faithfully construct the 2 Improvements referenced herein in a good and workmanlike manner within 12 months of obtaining building permits from City for each structure. Owner further covenants and agrees that 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 or variance thereof. 2.6 Owner shall contact City Building Official for final inspection once Improvements are completed and obtain a Certificate of Completion for the new residential dwellings as completed. 2.7 Owner shall notify the Lamar County Appraisal District upon completion of Improvements and request an updated appraisal of the Improvements. 2.8 Owner shall provide City with appraised value of Improvements upon receipt of same from Lamar County Appraisal District. 2.9 Owner may not use the parcels described in Section 1.1 and conveyed to Owner pursuant to the terms of this Agreement for any other purpose other than to construct the Improvements set forth in this Article. Use of any parcel for any other purpose shall constitute a separate act of default of the Agreement and will trigger the default provisions and remedies set forth hereunder. III. Terms Specific to the Economic Development Agreement— Texas greementTexas Local Government Code Chapter 380 A. Term 3.1 The term of this Economic Development Agreement shall commence on April 11, 2022 and shall continue for a period of five (5) years ending on April 10, 2027. B. Reduced Fees for Building Plan Review and Permitting 3.2 In further consideration for Owner's construction and completion of the above - referenced Improvements, City agrees to reduce rates for building plan review by one hundred percent (100%) and permit fees by fifty percent (50%) for each dwelling unit constructed pursuant to this Agreement. C. Reduced Fees for Water and Sewer Tap Labor 3.3 In further consideration for Owner's construction and completion of the above - referenced Improvements, City agrees to reduce rates for water and sewer tap labor fees by fifty percent (50%) where required by the City's Public Works Department. D. Local Purchasing 3.4 As further consideration for the incentives granted herein, where possible, Owner shall purchase building materials and fixtures from vendors located within the City of Paris. E. Default 3.5 It shall be an act of default of the Economic Development Agreement should Owner fail to construct and compete all of the Improvements specified herein within the five (5) year term set forth herein. In such case, City will exercise its right of reversion to each parcel on which a residential development has not been constructed and completed, and Owner agrees to divest itself of any ownership interest in any and all such parcels conveyed to Owner under this Agreement. IV. Terms Specific to the Residential Tax Abatement Agreement Texas Tax Code Chapter 312 A. Term 4.1 The term of this Tax Abatement Agreement shall commence on April 11, 2022. It is the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on each dwelling unit constructed as it is completed and issued a Certificate of Completion by City. Consequently, each dwelling unit constructed and completed shall have its own five (5) year abatement period. The abatement period for each constructed and completed dwelling unit shall commence on January 1 of the year following City's issuance of a Certificate of Completion on said dwelling unit and end on the fifth (5) anniversary of the commencement of the abatement period. This Tax Abatement Agreement shall terminate upon the expiration of the final abatement period granted herein unless otherwise terminated by default or agreement of the Parties. B. Abatement 4.2 Subject to the terms and conditions of this Economic Development Agreement and Tax Abatement Agreement, and in further consideration for the construction and completion of the Improvements required herein and subject to the rights and holders of any outstanding bonds of the City, a portion of the ad valorem property taxes assessed upon each Improvement and otherwise owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per year of the taxes assessed upon the increased value of the Improvements made by Owner to the Properties described in Section 1.1 of this Agreement, over the value in the year by 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 Properties 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. 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, 2022. 4.3 This abatement is granted in accordance with the City's Guidelines and Criteria for the Program, a copy of which is attached hereto as Exhibit 3 provided, however, in the event 4 of any conflict between this Agreement and the Guidelines and Criteria for the Program attached hereto as Exhibit 3, this Agreement shall control. 4.4 Upon receipt of the documentation set forth in Article II and in Section 5.6 herein as to each constructed and completed duplex, City will notify the Lamar County Appraisal District to begin the tax abatement as to said unit. C. Default 4.5 If (a) the Improvements (all seven units) for which an abatement has been granted are not completed in accordance with this Agreement (within five (5) years of the effective date hereof); or (b) Owner allows its taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such; or (c) Owner materially breaches any of the other terms, provisions or conditions of this Economic Development Agreement and Tax Abatement Agreement, then owner shall be considered in default of this Agreement. In the event Owner defaults in its performance of either (a), (b), or (c) above, then City shall give Owner written notice of such default and if Owner has not cured such default within sixty (60) days of said written notice, this Tax Abatement Agreement may be terminated by the City. Notice of default shall be given in accordance with Article V of this Agreement. 4.6 As damages in the event of default, and in accordance with 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, including taxes on those dwelling units constructed and completed according to the terms of this Agreement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property 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, owing, 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. V. Additional Terms applicable to both the Economic Development Agreement and the Tax Abatement Agreement A. No Conflict of Interest. 5.1 The Owner represents and warrants that neither the Properties nor the Improvements include any real or personal property that is owned or leased by a member of the Paris City Council or the Planning and Zoning Commission or any member thereof having responsibility for approval of this Agreement. B. Conditions. 5.2 The terms and conditions of this Agreement are binding upon the parties hereto and their successors and assigns. 5 5.3 It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City assumes no responsibility or liability in connection therewith to third parties; and Owner agrees to release, indemnify and hold the City its elected officials, officers, employees and attorneys harmless from any claims, lawsuits, damages, costs or attorney's fees related to this Agreement. It is further understood and agreed among the parties that the City, in performing its obligations hereunder, is acting independently, and 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. C. Compliance Provisions 5.4 The Owner agrees that the City, its agents and employees, shall have reasonable right of access to any and all records concerning Owner's investment in the Improvements for the purpose of conducting an audit of the Residential Improvements. Any such audit shall be made only after giving the Owner notice at least fourteen (14) days in advance and will be conducted in such a manner as to not unreasonably interfere with Owner's property. Upon request, the Owner will provide the City with a detailed list of all Improvements, including a list of materials used and cost thereof. 5.5 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 are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, the City shall have the right to enter the Property and conduct an inspection of the completed Improvements. D. Initial and Annual Reporting. 5.6 The Owner further agrees that it will, within thirty (30) days of completion of each dwelling unit as it issued a Certificate of Completion by the City, 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: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property prior to the construction of the Improvements; (b) Detailed description of the Improvements; (c) A copy of or identification of plans and specifications of constructed improvements and the location of the same for inspection by City's Building Official; (d) The actual cost of the specific capital Improvements; and, (e) The date of substantial completion of the specific Improvements as defined 6 in paragraph 2.1 hereof, and (f) Receipts showing that the purchase of building materials and fixtures from for the construction were made from vendors within the City of Paris, when possible. 5.7 Owner further agrees that it will provide City with an annual, sworn report which shall certify, in writing, that it is in compliance with each applicable term of this Agreement. Such annual report shall be furnished on the forms provided by the City. E. Authority to Contract. 5.8. This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 11th day of April 2022, which further authroized the City Manager to execute the Agreement on behalf of the City. 5.9 This Agreement was entered into by Owner pursuant to the authority granted to the authorized official whose signature appears below. 5.10. 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. F. Legal. 5.11 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. 5.12 This Agreement, except by operation of law, shall not be assigned or transferred by Builder, without the prior written consent of City, which consent shall be at the sole discretion of the City. 5.13 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: BUILDER: Jeffery S. Brown 32 CR 33090 Sumner, Texas 75486 7 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O. Box 9037 Paris, TX 75461-9037 With a cqpy to City Clerk, City of Paris, Texas (Address same as above) 5.14 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. 5.15 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. 5.16 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. WITNESS our hands this day of , 2022. THE CITY OF PARIS, TEXAS Grayson Path, City Manager ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney JEFFERY S. BROWN BEFORE ME, the undersigned authority, on this day personally appeared Grayson Path, City Manager of the City of Paris, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _ day of April, 2022. Notary Public, State of Texas BEFORE ME, the undersigned authority, on this day personally appeared Jeffery S. Brown, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ® day of April, 2022. Notary Public, State of Texas 9 LIST OF EXHIBITS TO THIS AGREEMENT: 1= Owner's Program Application for low cost sale of property and 5 year tax abatement 2 = City's Guidelines and Criteria for 5 In 5 Housing In -Fill Affordable Development Program 10 E411copy NOTICE OF C-ONFIDJENUALITY RIGHTS: IF YOU ARI J A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTERE& NTERE&' IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC REk ORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. WARRANTY DEED THE STATE OF TEXAS KNOW ALL MEN BY THESE COUNTY OF LAMAR THAT 1, CAROL JEAN SMITH, a widow (herein cal '), ate County cif mar, State of Texas, for and in consideration of the sum of Ten( 10.00) "Dollars cash to me in hand paid by JEFFERY SHANE BROWN, receipt of which in full is hereby cknowledgcd; and have Granted, Sold and Conveyed, and by these presents do Orwit, Sell and Convey unto The conveyance evidenced by this deed is made subject to any I I i I I I I I I 1 1 1 11: 1 11 1 1 ; Jill 11111111111 : S�=' assigns forever, and grantor hereby binds herself, her heirs, executo i, administrators, personal rs J, 1 !11 ill I ill !1111 '111 Ill, Jill 111111111, 1111111 1111111111 Illillill Mliff"T'Iff" 5''WIT, 3�=� 21' WITNESS my hand this day of November, 2020. CAROL JEAN THE STATE OF TEXAS a�'Vlo COUNTY OF LAMAR ) THIS instrument was acknowledged before me on thea` d off" ovember, 2020, by CAROL JEAN SMITH. Notary a tic, Statc of Texas Nok7PU x STATE n� THIS INSTRUMENT WAS PREPARED SOLELY FROM!INFORMATION AND ON INSTRUCTIONS GIVEN TO US BY OUR CLIENT. NO TITLE OPINION, TITLE EXAMINATION, OR OTHER INFORMATION HAS BEENPROVIDED TO US IN CONNECTION WITH ITS PREPARATION. W. CLEM, ATTORNEY AFTER RECORDING RETURN TO: A. �, : AJ Jk jll� R .L,, Jeffrey Brown W. Cleo , Attorney (ar) 32 CR 33090 c% The Mr ore Law Firm, L.L.P. Sumner, TX 75486 100 N. Moi ti St., Paris, TX 75460-4222 CITY OF PARIS, TEXAS APPLICATION FOR RESIDENTIAL TAX ABATEMENT Property Owner; Name Current: Name Planned: _. MailingAddress: .....w,,, .� ...Y..�w.�.... �' Telephone Number �; ; 1 / ` l', , a r 1 Builder or Contact ..i different than curren... Tann...._ � � � ������ r� �;���� (� � t/p ed owner): ., � Name:D' ,.6 ..... w.. Mailing Address: �! c l/ i„ �1„ i, r ? ! % 1, .� J (//SfBte GC License NO /r .. lt / � � Telephone Number _. ., 1..!.,....7 .. Property Parcel(s) For Low Cost Land Sale and Tag Abatement: (Please submit an attached list of addresses and/or LCAD Vs on Excel Spreadsheet, if possible) Street Addresses d F.� WR ,rs,k f f . .... ...... Summary Legal Description Lot. Block: �,'_ y ,Addition Full Legal Description: Include as an attachment a full legal description with metes and bounds and a copy of the deed, if available. I Improvements: Type improvements for new Construction: SF 2F MF No. of Dwelling Units: n Estimated Value of Improvements 1 by ... Please attach a lending institution pre -loan approval liter. Attached: -No],,, -Yes"'- t Estimated Start Date of Construction• °�i r neo,'. ' r Estimated Date of Completion of Project(s) fes. Description of Project (attach site plan, floor plan, etc.:, �ti�, Applicant(s) Signatur ` r G Date, f llrl , Ifo o, (:.. k,6 . Date. i I Page 7 of 7 ' f 1 �.,,1 ,�„ �� II A f ( 0,„) f "I ��` ....... I a, ; s ,d �r f(i ,y�✓�” y k ; 5 IN 5 HOUSING IN -FILL DEVELOPMENT PROGRAM GUIDELINES, CRITERIA AND APPLICATION FORM CITY OF PARIS, TEXAS January 10, 2022 I. GENERAL PURPOSE AND OBJECTIVES The City of Paris, working with our local government partners, is seeking to provide a series of builder incentives designed to encourage new home construction for the purpose of neighborhood revitalization and the provision of work force housing. New home construction within the existing interior of the community can have a positive effect towards reinvestment in our neighborhoods by providing stability and enhanced character, as well as a means to expand our community's local labor force. Focusing on the existing interior of the City allows the builder to utilize existing infrastructure rather than the extension of costly streets and utilities in undeveloped lands at or beyond the urban fringe. To achieve this purpose, the City will offer a series of incentives: 1. Where applicable, the City will provide low cost residential lots in the Program Area in tax foreclosure city receivership. If a builder obtains properties through other traditional means within the Program Area, other incentives within this policy may apply. 2. The City will offer a five (5) year 100% residential tax abatement of City property taxes. 3. The City will offer reduced rates on building plan review and permit fees. 4. The City will offer reduced rates on labor charges on water and sewer tap fees. The city staff will work with interested builders to identify parcels from a pool of tax sale lots in trustee status to develop a list of properties that will be suitable for the construction of new dwelling units. This may consist of single-family, two-family, medium density, or high density residences. Prior to any construction occurring from which the builder is seeking incentives, the builder will enter into an Agreement to be approved by the City Council for the construction of a minimum of five (5) or more dwelling units on one (1) or more parcels. Each of the dwelling units subject to the Agreement must be constructed under the terms of the agreement within five (5) years from the date of the Agreement, unless such deadline is extended by subsequent approval of the City Council. All parcels under the Agreement must be built upon within five (5) years to satisfy the terms of the Agreement. Failure to achieve this goal will result in certain claw backs as provided in the Agreement. All applications shall be considered on a first come, first serve basis. There will be no income guidelines under this program for occupants of the dwelling units, whether owner or renter occupied. In the event the applicant constructs a new dwelling unit and sells said unit, the tax abatement shall lapse and be terminated as to that parcel unless the City Council approves an assignment of the tax abatement agreement to the new owner. Page 1 of 7 In order to further encourage local development, employment and enhancement of our economy, to be eligible for incentives in this policy, building materials and fixtures used in the construction of new dwelling units, where possible, must be purchased locally within the City of Paris. II. DEFINITION OF TERMS Act - The Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et. seq., as amended from time to time. Agreement - A contractual agreement between an applicant and the City of Paris for the purposes of a 5 In 5 Housing In -Fill Development Program to include an economic development agreement pursuant to Chapter 380 of the Texas Local Government Code and a residential tax abatement agreement pursuant to the Act. Applicant - An owner, proposed owner, builder or authorized agent of the owner of eligible property seeking an agreement under this policy. Base Year Value — The assessed value of eligible property on January 1, preceding the date of execution. Eligible Property - Property located in the defined Program Area, whether foreclosed on due to taxes or not. Also, property located outside the Program Area if foreclosed on due to taxes. New Structure - Residential improvements made to a property previously undeveloped or a vacant parcel which is placed into use by means other than by expansion or modernization without full demolition of an existing substandard or condemned structure. Program Area - An area depicted in "Exhibit B" of the approved resolution for the 5 In 5 Housing In -Fill Development Program, which area is wholly within the boundaries of Reinvestment Zone 2020-1 for the purpose of residential tax abatements. Residential Improvements - The construction of new residential structures and all the appurtenances thereto. This term includes single family, duplexes and multi -family structures. Value of Improvements — The appraised value of the Residential Improvements as determined by the Lamar County Appraisal District and as described in the Agreement. III. ELIGIBILITY AND GUIDELINES Real property is determined eligible under this policy as provided in the Definitions. If property is eligible, an Applicant may apply for an Agreement to receive incentives provided for in this policy. For tax foreclosed properties, all taxing jurisdictions shall be required to sign off on the low cost land sale according to the provisions of State Law prior to transfer of the property to the applicant. Page 2 of 7 oouiui�muiuuu��um Minimum Investment — To be eligible for residential tax abatement, an Applicant must construct a new structure or structures on the property parcel(s) identified in an Agreement between the applicant and the City Incentives Low Cost Sale of Foreclosed Progierties — As part of their agreement, an applicant may choose to purchase eligible properties that are in a state of tax foreclosure. These properties are strictly first come, first serve and the City makes no warranty on having available properties for this incentive. The City will work with the Lamar County, Paris Independent School District, and Paris Junior College to seek a low cost sale of the foreclosed property, but the City can only guarantee a low cost of its share. Tax Abatement - An Applicant who has satisfied all the criteria and guidelines for the low cost property sale and residential tax abatement as set out herein, will be eligible for a 100% five (5) year tax abatement on each parcel on which a dwelling unit or units are constructed and completed. The abatement will become effective on January 1' of the year following issuance of a Certificate of Completion following final construction inspection. As provided in the Act, a tax abatement may only be granted for the value of the Residential hnprovements which exceed the base year value of the property and which are listed in an Agreement between the City of Paris and the applicant, subject to such limitations as the City of Paris may require. The base value will be set as of January 111 of the year in which the Agreement is executed. Upon completion of construction, the Applicant shall provide a copy of all material and fixture purchase invoices to prove that those materials and fixtures were purchased locally within the City of Paris when possible. The tax abatement is available only for improvements made after the execution of the Agreement. The Agreement may not be approved by the City Council until at least thirty (30) days after notice of the consideration and possible action on the Agreement has been posted. Reduced Fees for Building Plan Review and Pennittin; The Applicant will be entitled to reduced ....,... rates for building plan review and permit fees on a cumulative basis for all new dwelling units under agreement with the City according to the following schedule: Total Dwelling Units Plan Review Fee Discount Building Permit Fee Discount 5-9 100% 50% 10-19 100% 75% 20+ 100% 100% Reduced Fees for Water and Sewer Tap Labor — The Applicant will be entitled to reduced rates for water and sewer tap labor fees, where required by the Public Works Department, on a cumulative basis for all new dwelling units under agreement with the City according to the following schedule: Page 3 of 7 Total Dwelling Units Water Tap Labor Fees Discount Sewer Tap Labor Fees Discount 5-9 50% 50% 10-19 75% 75% 20+ 100% 100% Claw Back Provision — The Applicant who enters into an Agreement with the City of Paris shall construct at least five (5) or more new housing dwelling units on one (1) or more parcels within five (5) years from the effective date of the Agreement, or the City shall have the right to automatically take back any undeveloped parcel under the terms of the agreement and transfer of the property by all taxing entities. This shall be recorded with or as a part of the deed as a right of reversion for all uncompleted construction lots deeded under this agreement against the property. The Applicant may request approval of an extension for such failure to construct a new residential dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to another individual except by prior approval and re -assignment of the parcel(s) and approval of a new agreement by the City Council. Failure to meet the requirements of construction the minimum of five (5) dwellings within the five (5) year period will result in a reversion of the all parcels upon which Residential Improvements have not been constructed and completed to the City and will result in the Applicant's being ineligible to participate in this program in the future. As a further claw back provision, and in accordance with Texas Tax Code Sec. 312.205, the Agreement shall provide for recapturing property tax revenue lost as a result of the agreement if the owner of the property fails to make all the Residential Improvements as provided in the Agreement regardless of how many dwelling units applicant builds. C_gV1pl ance with all other Cit � Re!,luirements — The Applicant shall be fully responsible for compliance with all zoning, subdivision platting, and building code requirements as may specifically pertain to the subject parcels) under the approved Agreement. The applicant shall be fully responsible for all such costs which may include, but not be limited to: Zoning Changes, Special Use Permits, Variances, Platting and Surveying Costs, Plan Preparation, and Building Permit Fees. IV. APPLICATION PROCEDURES Applications for an Agreement with the City shall be reviewed for completeness. City Staff shall determine whether the application satisfies guidelines and criteria and Staff may request additional information or documents from Applicant. City Staff will make final recommendations on each application to the City Council. Any Applicant desiring approval of an Agreement shall comply with the following procedural guidelines. All applications shall be evaluated on their own merits within the parameters of these Guidelines and Criteria. Preliminary Application Steps A. Applicant shall work with City Staff to identify eligible tax foreclosure City Trustee 030 or other parcels within the defined geographic area. City Staff will provide a list and corresponding map from which tax foreclosure City receivership parcels may be reviewed. The Applicant may submit an application for this program concurrently with an application for a building permit(s). If the Applicant for the building permit is not the owner of the real estate and does not make application for an agreement on behalf of the owner of the real estate and does not make application for an Agreement on behalf of the owner, the City Staff shall notify the owner (according to the most current records of the Lamar County Appraisal District) by certified mail, return receipt requested, that the application must be signed and filed with the City within ten (10) business days of receipt of the affidavit of ownership notice. B. A pre -approval letter must be attached to the application from Applicant's financial institution stating that the Applicant will have financial capital available to compete all new dwelling unit construction under the five (5) year Agreement with the City. Verification of such financial capability may be reviewed over the course of the Agreement. C. If the building permit applicant does not apply for an Agreement prior the time the building permit is issued, or if the owner fails to respond to the written notice availability of the Agreement, this policy shall be considered waived by the applicant and/or owner. City Staff shall make a record to reflect owner's election not to participate in the Program or to document that owner did not respond to City's notice of opportunity to participate in the program. The refusal or waiver to participate in the program by the building permit applicant or owner shall be binding on subsequent owners of the real property. D. A complete legal description shall be provided with a copy of the current deed of the land, unless the parcel(s) are being transferred by tax resale deed by the City of Paris. E. Applicant shall complete all forms and information detailed above and submit all forms to the City of Paris Director of Planning and Community Development. 2. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. If necessary, Applicant will meet with City Staff to discuss details of the application and to prepare presentation of the application to the City Council. 3. The application shall designate whether the dwellings(s) to be constructed are to be retained for ownership, or sold to another owner upon completion of construction. Applicant shall also provide an estimate of the value of improvements as required for building permit application. 4e If an application for the 5 In 5 Housing In -Fill Development Agreement is to be recommended for approval by staff, then an Agreement as defined herein with the City of Paris as prepared by the City Attorney for approval by the City Council. Page 5 of 7 5. If the Applicant's property is not found to be eligible, the application will be rejected and returned to Applicant. 6. The City Council reserves the right to amend these policies and guidelines as needed. V. LEGAL DOCUMENTATION PREPARATION The Director of Planning and Community Development and the City Attorney will be responsible for drafting the required Agreement in accordance with state law and this Policy. The legal document will include the following: 1. Estimated value of new structure or residential improvements to be constructed. 2. Total amount of value to be abated over five (5) years. 3. Effective date and the termination date of abatement. 4. Description of the Residential Improvements, schedule of completion, property description, all required City approval requirements and a platted lot site plan or sketch of the parcel(s) to be platted and developed. 5. Applicant agrees to make the new structure or residential improvements available for inspection by City of Paris, or its authorized representatives, and Lamar County Appraisal District (LOAD) during construction and upon completion of the project. 6. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture and administration. 7. A signed and notarized statement as an attachment to the application agreeing to construct five (5) dwelling units on one (1) or more parcels within five (5) years from the date of City Council approval of an Agreement, unless extended by the City Council, or consenting to allow the City to automatically take back the parcel(s) under the initial terms of an approved agreement. CITY OF PARIS, TEXAS APPLICATION FOR RESIDENTIAL TAX ABATEMENT Property Owner: Name Current: Mailing Address: Name Planned: Telephone Number: email: Builder or Contact (if different than current/planned owner): Name: Mailing Address: State GC License No: Telephone Number: email _... Property Parcel(s) For Low Cost Land Sale and Tax Abatement: (Please submit an attached list of addresses and/or LCAD Ws on Excel Spreadsheet, if possible) Street Addresses: LCAD Ws Summary Legal Description Lot: Block: Addition: Full Legal Description: Include as an attachment a full legal description with metes and bounds and a copy of the deed, if available. Improvements: Type improvements for new Construction: SF_ 2F MF No. of Dwelling Units: Estimated Value of Improvements by type: Please attach a lending institution pre -loan approval letter. Attached: Yes Estimated Start Date of Construction: Estimated Date of Completion of Project(s) Description of Project (attach site plan, floor plan, etc.: Applicant(s) Signature: Date: Date: NO MCLE WORK DATE: No N-lember 23,192# - SALE PRICE: $6.000.00 frmwufONr0611 t e Paris, Texas 75460 "Law Firm". 1) The Law Firm, is acting only as an intermediary and scrivw Buyer, and does note represent either party to the exclusio of the other. The La Firm will not give legal advice to either of the parties without the other party or including the other party in any discus involved. The Law Firm has prepared all documents for this tra- �11 m pIlprovides no opinion, information vided to it by Seller and Buyer. e Law pro kind or assurance, warranty or guaranty of any re Far"i information. Any defects, raisrepresentations, or other errors in a, the Law Firm are solely attributable to Seller and/or Buyer. 2) The Law Firm has advised Seller and Buyer to have title work p &do and purchase ofthe property. Seller and Buyer hereby requers! the documents concerning the sale of the property without any tit work. The Law Firm, at the request of Seller and Buyer, has not conducted any title exami" ti or other examination regarding title to the property. The Law Fix ME the property, nor has it checked for judgments, easements, ri mineral reservations, deeds of trust, child support liens, paying li abstracts ofludgment, or other encumbrances which may affect has not conducted or reviewed any surveys of the property, nor of the legal descron of the property furnished to it, In short, th and cannot advise Seller or Buyer that the title to the property is, title issues which may affect the property. 3) The Law Firm is not a Title Company or Title Insurer; it does regarding title to the property being sold. 4) TIUS IS A NO TITLE WORK TRANSACTION, AND IS . M4 ill SUCH AT THE REQUEST OF SELLER AND BUYER 5) SELLER AND BUYER ARE ADVISED THAT SELLER SI -1 OULD REPORT THIS SALE AND ANY PROFITS THEREFROM UPON HISAIKI JTHEIR/ITS INCOME TAX RETURN FOR THE YEAR IN WHICH THO T1'TRANSACTION IS CONSUMMATED. 6) Each Seller and each Buyer agrees to Hold Harmless and I demnify the Law Firm from any claims, causes of action, demands, disputes, damages or liabilities which may arise in any way from the transaction described in this Disc 'mer and Agreement. 7) A Closing Statement isvNOT being prepared. 8) Seller and Buyer are responsible for proration of ad valorem 9) A report of this sale to the Internal Revenue Service will be to it at the end of the year in which this transaction is const BY SIGNING BELOW, Seller and Buyer agree that they have above disclaimer and agreement. Any questions they have concerning I answered to the satisfaction of each Seller and each Buyer. Seller and Bt provided with copies of the documents related to this transaction; have l them; have had the documents explained to their satisfaction; the docume Seller and Buyer requested; and each Seller and each Buyer rstands th( L'L A ,SLG CAROL JEAN SMITH if applicable. and forwarded read and understand the ie transaction have been wyer agree they have been ad ample time to review Is have been prepared as documents being signed. All that certain tract or parcel of land situated within the Corporate Limits of the City of Paris, in Lamar County, Texas; part of the Larkin Rattan Survey, Abstract No. 778, and being all of Lots 1, 2, and 3 of Block 2, of the Campbell Addition, located in Plat Book 1, Page 15 of the Lamar County Plat Records, same being all of the called Lots 1, 2, and 3 in Block 2 of said Addition, a tract of land described in a Deed to Jeffery Shane Brown, and recorded in Document 176751-2020, of the Official Public Records of Lamar County, and being more particularly described as follows, to wit: Beginning at a''/z" iron pin (set) for a corner at an intersection of East Jackson Street and 12'h Street Southeast, same being the Northeast corner of said Lot l; Thence S 00' 00' 00" W with the East Line of said Lot 1 and with a West Line of said 12'h Street, at approx. 50', passing the Southeast corner of said Lot 1, same being the Northeast corner of said Lot 2, and continuing same course, at approx. 100', passing the Southeast corner of said Lot 2, same being the Northeast corner of said Lot 3, and continuing same course, in all, a distance of 149.584', to a 3/4" iron pin (found) for a corner, same being the Southeast comer of said Lot 3, and same also being the Northeast corner of Lot 4 of said Addition; Thence N 89° 16' 57" W with the South Line of said Lot 3 and with the North Line of said Lot 4, a distance of 150.000', to a''/z" iron pin (set) for a corner, same being the Southwest corner of said Lot 3 and the Northwest corner of said Lot 4, and same also being the Northeast corner of Lot 15 and the Southeast corner of Lot 16 of said Addition; Thence N 00' 00' 00" E with the West Line of said Lot 3 and with the East Line of said Lot 16, at approx. 50', passing the Northwest corner of said Lot 3 and the Southwest comer of said Lot 2, same also being the Northeast corner of said Lot 16 and the Southeast corner of Lot 17 of said Addition, and continuing same course, at approx. 100', passing the Northwest corner of said Lot 2 and the Southwest corner of said Lot 1, same being the Northeast corner of said Lot 17 and the Southeast corner of Lot 18 of said Addition, and continuing same course, in all, a distance of 149.584', to a 1/2" iron pin (set) for a corner in a South Line of said Jackson Street, and same also being the Northwest corner of said Lot 1 and the Northeast corner of said Lot 18; Thence S 89° 16' 57" E with the North Line of said Lot l and with a South Line of said Jackson Street, a distance of 150.000', to the Place of Beginning and containing 0.515 acre of land. The bearings recited herein are based upon the East Line of said Lots 1, 2 and 3, being S 90° 00' 00" W. This description was prepared from an actual survey made on the ground and under my supervision, with field notes completed May 19, 2021. May 19, 2021 WENDELL .. MOORE q 572' Wendell I Mv ooreSs���yo ° Registered Professional SUR w.. Land Surveyor No. 5723 1 of 2 Hansen —Moore Surveying, 1015 Cannon Place, Paris, Texas, 75462 (903) 784-1245 Ph. RESOLUTION NO. 2022-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS ESTABLISHING THE 5 IN 5 HOUSING IN -FILL DEVELOPMENT PROGRAM; AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE IN RESIDENTIAL HOUSING TAX ABATEMENTS AND APPROVING GUIDELINES, CRITERIA AND AN APPLICATION FORM FOR THE PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their intent to participate in tax abatement agreements and to adopt guidelines and criteria for granting such tax abatements; and WHEREAS, on October 14, 2013 in Ordinance No. 2013-036, the City Council designated Reinvestment Zone No. 2013-1 for residential tax abatements; 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, the City Council approved Resolution 2017-001 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, on April 22, 2019, the City Council approved Resolution 2019-013 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, in 2020, City Council re -authorized Reinvestment zone 2015-01 and renamed it Reinvestment Zone No. 2020-1; and WHEREAS, on April 12, 2021, the City Council approved Resolution 2021-012 re- authorizing 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 Sec. 312.002(c), guidelines and criteria for tax abatements are effective for two years from the date adopted; and WHEREAS, the City Council desire to continue to participate in a residential tax abatement program in the City of Paris and has now been presented with a new program to be known as the "S In 5 Housing In -Fill Development Program" (the "Program") with specific guidelines and criteria for residential tax abatements entered into pursuant to Program; and WHEREAS, the City Council has identified a specific geographic area within the City of Paris and within Reinvestment Zone 2020-1 in which lie properties eligibile for the Program; and WHEREAS, the City Council wishes to offer other incentives in the Program through Chapter 380 of the Texas Government Code; and WHEREAS, said the City Council finds that Program and the incentives offered therein will contribute to economic developmentwithin the Program area and the Reinvestment Zone through the provision of much needed housing for workforce for industries and other employers within the City; and WHEREAS, on January 10, 2022, the City Council conducted a public hearing regarding the Program guidelines and criteria for residential tax abatements, and having taken into account any testimony from said public hearing, wishes to adopt the Program and the guidelines and criteria for residential tax abatements set forth therein; 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. The City hereby adopts the "5 In 5 Housing In -Fill Development Program," a copy of which is and attached hereto and incorporated herein as Exhibit "A," elects to be eligible to participate in a residential tax abatement program under said Program, and adopts the Guidelines and Criteria for residential tax abatements contained in said Exhibit "A." Section 3. The City Council hereby designates the defined geographic area for properties to be eligible to participate and enter into an agreement for the "5 In 5 Affordable Housing In -Fill Program", a map of which is attached hereto and incorporated herein as Exhibit "B". Section 4. In order to qualify for the Program, an applicant shall agree to construct at least five (5) new residential dwelling units on one (1) or more parcels within the boundaries set out in Exhibit "B", which area lies within Reinvestment Zone 2020-1, within five (5) years of entering into an Economic Development Agreement and Tax Abatement Agreement with the City. Section 5. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 10th day of January, 2022. Paula Portugal, Mayos r ATTEST: Ellis, City Clerk APPROVED AS TO FORM: a' Ste°..�.... _ ��" _.................... ................ paaie H. Harris, City Attorney