21 - Residential Tax Abatement with Habitat for Humanity - Gibbons Park Addition Block 2 Lot 22 and East 24 ft of Lot 23 - 743 East PolkItem No. 21
TO: Mayor, Mayor Pro Tem and City Council
Grayson Path, City Manager
FROM: Andrew Mack, AICP Director Planning & Community Development
SUBJECT: Discuss and act on a Resolution approving a Residential Tax Abatement
Agreement with Paris/Lamar County Habitat for Humanity for the property
located at Gibbons Park Addition, Block 2, Lot 22 and East 24 ft. of Lot 23,
743 East Polk (LCAD Property ID 11781)
DATE: May 23, 2022
BACKGROUND
Habitat for Humanity is seeking approval of building permit to construct a new home at 743 East
Polk Street. They have included this property the recently acquired this year on their application
for 5 In 5 agreement application, but do not have control over the other 4 lots at this time.
Accordingly, staff has worked with the organization to achieve 1 of the 4 incentives of the 5 In 5
program with a 5 year 100% tax abatement. This, similar to an approval 2 weeks ago for the former
Westgate site, would modify the standard policy of de-escalating clause to a full 100% over 5 years
as in the 5 In 5. Habitat may also wish to pursue the same approvals with Lamar County as well.
Upon completion of the house construction, the tax abatement can be re -assigned to the new owner.
There may also be an opportunity at that time to add this property into a full 5 In 5 Agreement so
as to allow the other 3 incentives under the policy to apply for Habitat over the next five years.
This has been the topic of discussion with the organization to this point in time and staff would
fully support that recommended action should the additional 4 properties be secured by Habitat
prior to completion of the house and any proposed re -assignment of the abatement.
RECOMMENDATION
Staff recommends approval of a 5 -Year 100% Residential Tax Abatement Agreement with
Paris/Lamar County Habitat for Humanity for the property located at 743 East Polk Street.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS APPROVING A RESIDENTIAL TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF PARIS, TEXAS, ("CITY") AND PARIS/LAMAR
COUNTY HABITAT FOR HUMANITY, ("OWNER"); MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT AND
DECLARING AN EFFECTIVE DATE.
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 April 12, 2021, the City Council of the City
of Paris, Texas passed Resolution No. 2021-012 reauthorizing the city to become
eligible to participate in residential tax abatements and approving guidelines and
criteria for the program; and
WHEREAS, Owner has submitted an application for a residential tax
abatement agreement related to its purchase and rehabilitation (the
"Improvements") of the property located at 743 E. Polk St., Paris, Texas 75460 (the
"Property") for the purpose of constructing a new single-family dwelling (the
"Improvements:); and
WHEREAS, city staff has reviewed the application and the location of the
above described improvements (hereinafter "Improvements") and has determined
that the property is located within the boundaries of Reinvestment Zone 2020-1 and
meets the requirements for Improvements set forth in the guidelines and criteria set
forth in Resolution No. 2021-012; and
WHEREAS, Owner has a demonstrated track record of constructing quality
homes for lower income people in the city, and
WHEREAS, the location of the home to be constructed is within the zone set
forth in the city's 5 in 5 Housing Infill Development Program dedicated to
incentivizing investments in housing in the city's core; and
WHEREAS, as such, the City Council finds justification for an upward deviation
from the guidelines set forth in said Resolution No. 2021-012;
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 Residential Tax Abatement Agreement and
the property the subject thereof meet the City's Guidelines and Criteria for Residential
Tax Abatement adopted by the City of Paris by Resolution No. 2021-12 save and
except the following: the City Council finds that the project justifies an increase in the
percentage of abatement granted to one hundred percent (100%) for five years
because:
• The Property has been a vacant lot and the Improvements proposed thereto
will have a positive impact on the surrounding neighborhood and the area in
general; and
• The development of the Property will help to alleviate a housing shortage for
lower income people within the city.
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.
PASSED AND APPROVED this 23th day of May, 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
RESIDENTIAL TAX ABATEMENT AGREEMENT
This 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 PARIS/LAMAR COUNTY HABITAT FOR HUMANITY
(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 April 12, 2021, the City Council of the City of
Paris, Texas passed Resolution No. 2021-012 reauthorizing the city to become eligible to
participate in residential tax abatements and approving guidelines and criteria for the program;
and
WHEREAS, Owner has submitted an application for a residential tax abatement related
to its purchase of the property located at 743 E. Polk St., Paris, Texas 75460 (the "Property") for
the purpose of constructing a new single-family dwelling (the "Improvements"); and
WHEREAS, city staff has reviewed the application and the location of the above
described improvements and has determined that the property is located within the boundaries of
Reinvestment Zone 2020-1 and meets the requirements for Improvements set forth in guidelines
and criteria as set forth in Resolution No. 2021-012; and
WHEREAS, Owner has a demonstrated track record of constructing quality homes for
lower income people in the city; and
WHEREAS, the location of the home to be constructed is within the zone set forth in the
city's 5 in 5 Housing Infill Development Program dedicated to incentivizing investments in
housing in the city's core; and
WHEREAS, as such, the City Council finds justification for an upward deviation from
the guidelines set forth in Exhibit 2 herein;
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:
I.
Term
1.1 The Effective Date of this Agreement is May 23, 2022. The five (5) year abatement
period set forth herein shall commence on January 1St of the year following City's issuance of a
Certificate of Completion. This Agreement shall terminate upon the expiration of the abatement
period and the completion of Owner's reporting requirements under Article IX unless otherwise
terminated by default or agreement of the Parties.
II.
Improvements
2.1 The Improvements to be constructed consist of a single-family residential
structure with approximately 1209 square feet of enclosed living space located at 743 East Polk
St., Paris, Texas, Gibbons Park Addition Block 2, Lot 22 and East 24 ft. of Lot 23, LCAD
#11781 and further described in the deed attached hereto and incorporated herein as Exhibit 1.
The proposed cost of capital investment in the Property and Improvements is EIGHTY
THOUSAND AND NO/100 DOLLARS ($80,000.00)
2.2 Owner shall obtain City approval for all necessary plats, plans, building permits,
inspections and green tags as are required by City Ordinance or state law.
2.3 Owner shall allow City access to the Property and Improvements throughout
construction and completion of Improvements for inspection purposes.
2.4 Owner agrees and covenants that it will diligently and faithfully, construct the
Improvements referenced herein in a good and workmanlike manner to completion within twelve
(12) months of obtaining building permits from City. 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.
2.5 Owner shall contact City Building Official for final inspection once
Improvements are completed.
2.6 Owner shall notify the Lamar County Appraisal District upon completion of
Improvements and request an updated appraisal of the Improvements.
2.7 Owner shall provide City with appraised value of Improvements upon receipt of
same from Lamar County Appraisal District.
III.
Tax Abatement
3.1 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 the ad valorem property taxes assessed
upon the Improvements and otherwise owed to the City shall be abated for a five-year period at
2
one hundred percent (100%) per year.*
*Abatement is applied only to increased value of the residential improvements that
exceeds the base year value as determined by the Lamar County Appraisal District. The base
year value being the assessed value of any improvements that were on the property as of
January 1, 2015, the year that this Agreement is signed.
3.2 Said abatement shall be an amount equal to the percentage referenced in the
table above for the applicable year but subject, however, to Owner's rights to protest such
value and cause it to be adjusted as is provided for under the applicable laws of the State of
Texas. This tax abatement shall be implemented and enforced in accordance with all
applicable state and local laws and regulations or valid waiver 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.
3.3 This abatement is granted in accordance with the City's Guidelines and Criteria
for Residential Tax Abatements a copy of which is attached hereto as Exhibit _2 provided,
however, in the event of any conflict between this Agreement and the Guidelines and Criteria
for Residential Tax Abatement this Agreement shall control.
IV.
Default
4.1 If (a) the Improvements for which an abatement is being granted are not
completed and maintained in accordance the terms of this Agreement; or (b) the appraised
value of the Improvements does not satisfy the City's Guidelines and Criteria for Residential
Tax Abatement; or (c) Owner allows its property taxes owed the City or any other local taxing
entity to become delinquent without a timely protest or appeal; or (d) Owner materially
breaches any of the other terms, provisions or conditions of this Agreement, then Owner shall
be considered in default of this Agreement. In the event the Owner defaults in its performance
of either (a), (b), (c), or (d) above, then the City shall give the Owner written notice of such
default and if the Owner has not cured such default within sixty (60) days of said written
notice, this Agreement may be terminated by the City. Notice of default shall be given in
accordance with Article XI of this Agreement.
4.2 As damages in the event of default in accordance with the requirements of
Section 312.205(a)(4) of the Property 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 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 Property 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. The parties acknowledge that actual damages in the
event of default and termination would be speculative and difficult to determine.
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V.
No Conflict of Interest
5.1 The Owner represents and warrants that neither the Property 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 of the City of Paris, or any
member thereof having responsibility for approval of this Agreement.
VI.
Assignment
6.1 The terms and conditions of this Agreement are binding upon the parties hereto
and their successors and assigns.
6.2 This Agreement may not be assigned without the express written consent of the
City Council of the City of Paris, Texas.
VII.
Indemnification
7.1 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 arising from or related to this
Agreement.
VIII.
Retention of Records/Audit/Inspection
8.1 Owner shall maintain all fiscal records related to the construction of the
Improvements, including, but not limited to: purchase orders, contracts, receipts, materials
orders or other fiscal records and supporting documentation for expenditures associated with
this Agreement or the Improvements referenced herein. Owner shall retain such records, and
any supporting documentation for the greater of:
(a) Five (5) years from the end of the Agreement period; or
(b) The period required by other applicable laws and regulations.
8.2 Owner grants City, or any of its duly authorized agents or representatives
access to and the right to examine Owner's books, accounts, ledgers, purchase orders, records,
reports, files, photographs, video and digital tapes/files, electronic files or other documents
related to this Agreement or the Improvements referenced herein. The City's access to
Owner's books and records will be limited to information needed to verify that Owner is and
4
has been complying with the terms of this Agreement.
8.3 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.
IX.
Initial and Annual Reporting
9.1 The Owner further agrees that it will, within sixty (60) days of completion of the
Improvements, provide the City with the following information:
(a) A copy of the deed showing good title to the Property and Improvements in the
name of the Owner;
(b) A copy of any mortgages, notes, loans, liens financing statements or deeds of trust
against the Property and Improvements.
(c) Detailed description of the Improvements subject to this Agreement;
(d) A copy of the building plans and specifications for the constructed
Improvements if same has not already been filed with the City Building Official;
(e) The actual cost of the completed Improvements including all labor and materials;
(f) The date of substantial completion of the Improvements;
(g) A copy of the updated appraisal of the Improvements from Lamar County
Appraisal District (if available).
9.2 Owner shall file Annual Reports with the City on or before February 1St of each
year stating that Owner is in compliance with the terms of this Agreement. Owner shall also
provide notice to City of any ownership changes or transfer or assignments of liens, notes or
mortgages related to the Property or Improvements.
X.
Authority to Contract
10.1. Each person signing this Agreement represents and warrants that he or she is
duly authorized and has legal capacity to execute and deliver this Agreement.
10.2 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.
XI.
Miscellaneous Provisions
11.1 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.
11.2 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.
11.3 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:
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)
OWNER:
Paris/Lamar County Habitat for Humanity
P.O. Box 1555
Paris, Texas 75461
11.4 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.
11.5 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.
6
11.6 This Agreement shall be governed by, construed and enforced in accordance
with the laws of the State of Texas. This Agreement shall be performed in Paris, Lamar
County, Texas. 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.
Signature page to follow.
7
WITNESS our hands this 23rd day of May, 2022.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
THE CITY OF PARIS, TEXAS
Paula Portugal, Mayor
PARIS LAMAR COUNTY
HABITAT FOR HUMANITY
Name:
Title:
STATE OF TEXAS }
COUNTY OF LAMAR }
BEFORE ME, the undersigned authority, on this day personally appeared Paula
Portugal, Mayor, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that she 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 May, 2022.
,w
Notary Public, State of Texas
STATE OF TEXAS }
COUNTY OF LAMAR }
BEFORE ME, the undersigned authority, on this day personally appeared
of Paris Lamar County Habitat for Humanity, known
to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged
to me that she 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 May, 2022.
Notary Public, State of Texas
0
L,�Q t CE OF CONFIDENT) Y RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION
FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY
BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR. SOCIAL
SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
"TF.J DEED
THE STATE OF TEXAS )
1 KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR
THAT I, LYNN PATTERSON, as duly authorized agent and attorney in fact for
DORIS PATTERSON (herein called "grantor"), of Lamar County, Texas, for the purpose of
making a gift to the grantee hereinafter named;
have Granted, Given and Conveyed, and by these presents do Grant, Give and Convey, unto
PARIS/LAMAR COUNTY HABITAT FOR HUMANITY, INC., A Texas Nan -Profit
Corporation (herein called "grantee"), of the County of Lamar, State of Texas, where its mailing
address is P. O. Box 1555, Paris, Texas 75461-1555, all those certain tracts or parcels of land in
Lamar County, Texas, described as follows:
Two (2) Tracts of land within the corporate limits of the City of Paris, part of the Larkin Rattan
Survey; more fully described in Exhibit "A" attached hereto and made a part hereof for all necessary
purposes.
The conveyance evidenced by this deed is made subject to any and all easements, rights-of-way,
restrictions, covenants, conditions and reservations of record applicable to the within described property or
any part thereof.
TO HAVE AND TO HOLD the within described property and premises, together with all
and singular the rights and appurtenances thereto in anywise belonging unto PARIS/LAMAR
COUNTY HABITAT FORHUMANITY, INC., A Texas Non -Profit Corporation, its successors
or assigns forever.
9A1111
isses6-2021 Pages: 3 DG
11/12/2021 10:06:33 AM By: Julian
Lamar County, TX
Ruth Sisson - County Clerk
111111 l 111111111411111111111111111111110111111111111111111111111111111111 I I I I
WITNESS my hand this I ' day of November, 2021.
LYNN ATTERSON, as duly authorized
agent and attorney in fact for DORIS
PATTERSON
TIM STATE OF TE.XAS
ACKNOWLEDGMENT
COUNTY OF LAMAR
TIES instrument was acknowledged before me on, the eday of Novem er, 2021,, by
LYNN PATTERSON, in the capacity herein stated.
lEy
P We '� Xtary 'P lic, State of T4
STATE OF'
THIS INSTRUMENT WAS PREPARED SOLELY FROM INFORMATION AND ON
INSTRUCTIONS GIVEN TO US BY OUR CLIENTS. NO TITLE OPINION, TITLE
EXAMINATION, OR OTHER INFORMATION HAS SEEN FURNISHED TO US IN
CONNECTION WITH ITS PREPARATION. CASEY GAIN, ATTORNEY
FTER RECO DING RETURN_'x0: PR g IN THE LAW_Of,F[ E OF
Paris/Lamar County Habitat for Casey Gain, Attorney
Humanity, P. 0. Box 1555 do The Moore Law Firm, L.L.P.
Paris, Texas 75461-1555 100 N. Main, Paris, TX 75460-4222
j% e -
A W C-Ar-8iMR7li 2' IYY,i Texas
tract or paroel of land, a part at the lurkin Rattan surrey in Lamar County. 7exaa,bsing
lot 22 and s part of tat 23 in block 2 of the Gibbous Park addition to the Cit? of 7arisl
and descrlbed by metes and bounds as follOwei
Seginning at a stake 7.n the 28 21he of talk Streets acme being the Sit corner of lot .22 In black
2 of said addition.
Thence north with the WB 1112* of ams 150 feet too stake in a 20 toot alley. safes belva Lh*
liw oornar at said lot 22 inbloak/76t said Addition;
Thanae eaat with the SS line of Said alloy 50 feet$ a etakel being the US corner of lot 22
and the Wd comer of lot 23 of said block 2, coatinuing on soot 23 foot to a striae in the
E IM litre of asU lot 231
Thenoe south 154 feet to a stake In the, 10 line of polls Street, Nhieh point Is e,iaa the 5a
line of lot 23 in block 2. of said additiont
i TLence vast Kith the tit line or said Street and the SB line of Into 22 end 23, 73 feet to
the place of bogiadingt !
Beim the Gama pwPorty dasoribea is deed from ifargaret X. Wontgoaxry to marl Ylelds, 1r,dated Soptombar 12, 1946, recorded in toed book 293, pages 121-22 of the reco2ds of Lomar
County, Texas.
Tphc,iss F. Palld
4 vel or tract of land re
d desabed as folior�s2 Lot No, $0, Block Die. 1 of the
t�•c
OiT+bonc�Pazk Addition in the City of Paris, Texas. Being the asses tract of land
j as Trac,. 12 in a certain jqudgemmt of the 62nd. Sud�ieiel. Court, Lar•.at Oounty,
T=xas, in Cause No. 25, 700 titled (IMMi].la C. Parmer vs. Ao913uat at a1. Said
Judgment being of record in Vol. 4U, pages 5-15'incluslYa, Tamar County, Texas
deed records.
EXHIBIT
#1
ME
RESOLUTION NO. _. 2021-012_
52
ARESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
RE -AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE IN
RESIDENTIAL TAX ABATEMENTS AND APPROVING GUIDELINES AND
CRITERIA FOR THE RESIDENTIAL TAX ABATEMENT 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 abatement agreements and to adopt guidelines and criteria for granting
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 Resoulution 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 Resoulution 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 2021, City Council re -authorized Reinvestment zone 2015-01 and renamed
it Reinvestment Zone No. 2020-1; 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 continues to desire to participate in a residential tax
abatement program in the City of Paris and has been presented Guidelines and Criteria for a
Residential Tax Abatement Program;
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
so
approved.
Section 2. The City hereby elects to be eligible to participate in a residential tax abatement
program and adopts the Guidelines and Criteria for Residential Tax Abatement Program attached
hereto and incorporated herein as Exhibit "A".
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 12th day of April, 2021.
NE
Steve Clifford, D., May,
ATTEST:
?G
ice Ellis, City Clerk
APPROVED AS TO FORM:
teph nie H. Harris, City Attorney
RESIDENTIAL TAX ABATEMENT PROGRAM
GUIDELINES AND CRITERIA
CITY OF PARIS, TEXAS
APRIL 12, 2021
I. GENERAL PURPOSE AND OBJECTIVES
The City of Paris will offer residential tax abatement as a stimulus for economic development in
designated reinvestment zones located within the corporate city limits of the City of Paris, Texas.
The policy of the City is to grant residential tax abatement for new residential structures and
modernization, rehabilitation or expansion of existing residential structures that meet minimum
investment threshold and comply with these Guidelines and Criteria. All applicants shall be
considered on a case-by-case basis.
II. DEFINITION OF TERMS
Act -means the Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et. seq.,
as amended from time to time.
Agreement -means a contractual agreement between an applicant and the City of Paris for the purposes
of tax abatement.
Applicant -means an owner of real property or his authorized agent located in a reinvestment zone or
proposed reinvestment zone who requests tax abatement in accordance with these guidelines.
Base Year Value — means the assessed value of eligible property on January 1, preceding the date of
execution.
Eligible Property - means new structure or residential improvements located in a designated
Reinvestment Zone.
Modernization — means the replacement, expansion and/or upgrading of single-family residential
improvements for the purpose of reconditioning, refurbishing or expanding a single-family residence.
New Structure - means residential improvements made to a property previously undeveloped which is
placed into use by means other than or in conjunction with expansion or modernization.
Reinvestment Zone - means an area designated in accordance with the Act by the City of Paris. Only
property in a Reinvestment Zone may be eligible for tax abatement.
Residential Improvements - means the construction of new single-family residential structures and all
the appurtenances thereto, and includes modernization of existing structures. This term does not include
duplexes or multi -family structures.
Total Facility - means all improvements constructed.
Pagel of 5
1
Value of Improvements — means the appraised value of the residential improvements as determined by
the Lamar County Appraisal District and as described in the tax abatement agreement.
III. ELIGIBILITY AND GUIDELINES
Any real property located within a designated reinvestment zone and zoned by the City of Paris for
single-family residential development is eligible and may apply for residential tax abatement. As provided
in the Act, abatement may only be granted for the value of the Residential Improvements which exceed
the base year value of the property and which are listed in an Abatement Agreement between the City of
Paris and the property owner, subject to such limitations as the City of Paris may require.
Minimum Investment — To be eligible for residential tax abatement, an applicant must construct a new
structure on their property or make residential improvements to an existing structure in a minimum
amount of twenty percent (20%) of the appraised value of the property as of January 1St of the year that
the tax abatement agreement between the applicant and the City is signed.
Term and Percents a of Abatement - An applicant who has satisfied all the criteria and guidelines for
residential tax abatement as set out herein, will be eligible for tax abatement in accordance with the
schedule below. Abatement will become effective in the tax year following the date of completion of the
improvements and appraisal of the improvements by Lamar County Appraisal District (LCAD).
IV. SCHEDULE OF ABATEMENT
TAX YEAR ABATEMENT*
1 100%
2 100%
3 80%
4 60%
5 40%
6 Zero%
*Abatement is applied only to the increased value of the residential improvements that exceeds the base
year value as determined by the Lamar County Appraisal District.
V. ,APPLICATION PROCEDURES
Applications for residential tax abatement 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 City
Council. Any person, partnership, organization, corporation or other entity desiring a residential tax
abatement to encourage development within a designated Reinvestment Zone shall comply with the
following procedural guidelines. All tax abatement applications shall be evaluated on their own merits
within the parameters of these Guidelines and Criteria.
1. Preliminary Application Steps
A. Applicant or applicant's agent shall submit an "Application for Residential Tax
Abatement" contemporaneously with the application for a building permit. If the
building permit is for new single family residential construction or expansion or
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remodeling of a single-family residential structure in an amount that would make the
owner eligible for residential tax abatement, then staff will provide applicant with a form
application for residential tax abatement. If the applicant for the building permit is not the
owner of the real estate and does not make application for residential tax abatement on
behalf of the owner, the city staff shall notify the owner (according to Lamar County
Appraisal District records) by certified mail, return receipt requested, that residential tax
abatement must be filed with the City within ten (10) business days of receipt of the
notice.
B. If applicant chooses not to apply for residential tax abatement at the time that the building
permit is issued, or if the owner fails to respond to the written notice of availability for
residential tax abatement, the opportunity for residential tax abatement is waived. 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
residential tax abatement program. The refusal or waiver to participate in residential tax
abatement by the owner or applicant shall be binding on subsequent owners of the real
property.
C. A complete legal description shall be provided.
D. Applicant shall complete all forms and information detailed above and submit all forms
to the City of Faris Building Official.
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 structure is new or an existing structure and provide
an estimate of the value of improvements.
4. If Application for residential tax abatement is approved by staff, Applicant must enter into a tax
abatement agreement with the City of Paris and as prepared by the City Attorney.
If the Applicant's property is not located within a designated reinvestment zone the application
will be rejected and returned to Applicant.
6. The City Council reserves the right to amend the boundaries of a reinvestment zone or to
designate new reinvestment zones.
7. The City Council reserves the right to amend these policies and guidelines as needed.
VI. LEGAL DOCUMENTATION PREPARATION
The City Attorney will be responsible for drafting the Residential Tax Abatement Agreement in
accordance with state law and these Guidelines and Criteria.
The legal document will include the following:
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1. Estimated value of new structure or residential improvements to be constructed.
2. Percent of value to be abated each year.
3. Effective date and the termination date of abatement.
4. Description of the Improvements, schedule of completion, property description and/or site plan.
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 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.
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e
CITY OF PARIS, TEXAS
PLICATION FOR RESIDENTIALTAX ABATEMENT
Property Owner:
Name:
Mailing Address:
Telephone Number:
Contact (if different than owner):
Name:
Mailing Address:
Telephone Number:
Property Requesting Tax Abatement:
Street Address:
Summary Legal Description Lot: _ --- . Block: _ _...... m _ Addition:
Full Legal Description: Include as an attachment a full legal description with metes and bounds.
Improvements:
Type of Improvements (please check one). New Construction: . ............... e_ Remodeling:
Estimated Value of Improvements:
Estimated Start Date of Construction:
Estimated Date of Completion of Project:
Description of Project:
Applicant(s):
Date:
_ Date:
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