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17 - 5 in 5 Tax Abatement Agreement with Sky-Mar VenturesItem No. 17 TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Discuss and Act Upon a 5 In 5 Tax Abatement Agreement with Skyler Burchinal DATE: June 27, 2022 BACKGROUND & DISCUSSION Attached please find the draft resolution and agreement located along SW 4th St. and Sherman Ave. between the City and Mr. Skyler Burchinal of Sky -Mar Ventures, LLC for the construction of a new 10 unit apartment in the 5 In 5 Area for a total of 10 dwelling units. The apartments are planned for construction this year and a platting process will follow this agreement prior to construction. Attached are examples of the new apartment Mr. Burchinal proposes to construct on the property and will be the General Contractor for the project. The agreement spells out all the requirements under the 5 In 5 Infill Development Program Guidelines. Mr. Burchinal plans to attend the meeting on Monday night and present his building plans under the agreement to the City Council. I also attended the Lamar County Board Meeting with Mr. Burchinal on June 13"'. The tax abatement agreement will be back on the county board agenda on July l It" for final approval. Recommendation Approval of the 5 In 5 Infill Development Agreement with Skyler Burchinal of Sky -Mar Ventures, LLC for the construction of a new 10 unit apartment in the 5 In 5 Area is recommended. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT AND TAX ABATEMENT AGREEMENT WITH SKY -MAR VENTURES, LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris, Texas has been presented a proposed agreement by and between the City and Sky -Mar Ventures, LLC providing for an Economic Development Agreement and Tax Abatement Agreement (the "Agreement") under the 5 in 5 Housing In -fill Development Program (the "Program") adopted by the City Council on January 10, 2022 by Resolution No. 2022-003; and, WHEREAS, on February 10, 2020, the City Council of the City of Paris, Texas 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, Resolution 2022-003, City Council designated an area within Reinvestment Zone 2020-1 as being eligible for the Program; 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 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 under the program to construct a new apartment building with ten (10) dwelling units on property owned by him in the 300 block of West Sherman St. in Paris, Texas (hereinafter "Improvements"); and WHEREAS, city staff has reviewed the application and the location of the above described residential apartment building (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, 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 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 Exhi _' A and incorporated herein by reference, 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 Exhib A. Section 5. 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 27th day of June, 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 SKY -MAR VENTURES, LLC (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, on February 10, 2020, the City Council of the City of Paris, Texas 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 passed Resolution No. 2022-003 stating its intent to establish the 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 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 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 a new apartment building with ten (10) dwelling units on property owned by him in the 300 block of West Sherman St. 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. 1 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: • 332 W. Sherman, City of Paris Block 118, Lot 17-A (LCAD# 15936) 0 338 W. Sherman, City of Paris Block 118, Lot 18 (LCAD# 15938) 0 348 W. Sherman, City of Paris Block 118, Lot 19 (LCAD# 15939) • 358 W. Sherman, City of Paris Block 118, Lot 20 (LCAD# 15940) II. Consideration --Improvements 2.1 The Improvements to be completed consist of constructing a new apartment building comprising ten (10) residential dwelling units 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 THOUSAND AND NO/100 DOLLARS ($500,000.00). 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 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 June 27, 2022 and shall continue for a period of five (5) years ending on June 26, 2027, B. Reduced Fees for Building Plan Review and Permitting 3.2 In 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 seventy-five percent (75%) 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 seventy-five percent (75%) 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. 3 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. IV. Terms Specific to the Residential Tax Abatement Agreement— Texas greementTexas Tax Code Chapter 312 A. Term 4.1 The term of this Tax Abatement Agreement shall commence on April 11, 2022. The abatement period shall commence on January 1 of the year following City's issuance of a Certificate of Completion on said Improvements and end on the fifth (5t') anniversary of the commencement of the abatement period. 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 the Improvements 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 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, City will notify the Lamar County Appraisal District to begin the tax abatement. C. Default 4.5 If (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement (within five (5) years of the effective date hereof); 4 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. 5.3 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. ZJ 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 theIm. prove eats 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 Irnprovements, the City shall have the right to enter the Property and conduct an inspection of the completed prove eats. 5.6 The Owner further agrees that it will., within thirty (30) days of completion. of the Improvements and issuance of 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 infon-nation: (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 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. 53 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 to of this Agreement. Such annual report shall be furnished on the forms provided by the City. T E. Authority to Contract. 5.8. This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 27th day of June 2022, which further authorized 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: OWNER: Sky -Mar Ventures, LLC Attn: Skyler Burcinal 1324 N. Main Paris, Texas 75460 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O. Box 9037 Paris, TX 75461-9037 With �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 7 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. Signature eaggjahRM WITNESS our hands this day of , 2022. ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE CITY OF PARIS, TEXAS Grayson Path, City Manager SKY -MAR VENTURES, LLC Skyler Burchinal, President 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 June, 2022. Notary Public, State of Texas N BEFORE ME, the undersigned authority, on this day personally appeared Skyler Burchinal, President of Sky -Mar Ventures, LLC 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 June, 2022. Notary Public, State of Texas 10 LIST OF EXHIBITS TO THIS AGREEMENT: 1=Property Description 2 = Owner's 5 in 5 Program Application 3 = City's Guidelines and Criteria for 5 In 5 Housing In -Fill Affordable Development Program 11 0313112022 02:37 PM Total Pages: 4 Ruth Sisson, County BY:STONE TITLE COMPANY, INC NOTICE OF CONFIDENTIALITY RIGM; IF YOU ARE A NATURAVOERSON, YOU MAY REMOVE O STRIKE ANY OR ALL OF THE FOLLOWING INFO ;ATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAS OP'EjtTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:; ; VbUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. A.N T Y lD IE!: E D _. THE STATE OF TEXAS KNOW ALL MEN BY TRES`I?RESESr COUNTY OF LAMAR f, THAT I, STEVE LANDERS, a single person (iter ti called' ntor"), of the County of �•.`, •� CJI Lamar, State of Texas, for and in consideration of the sum of 1 en (i�,#l0) and more Dollars cash to me in hand paid by SKY -MAR VE NTURES, LLP;, Texas Limited Liability Company, receipt of which is hereby acknowledged; and have Granted, Sold and Conveyed, and by'thgse,pceWnts do Grant, Sell and Convey unto SKY - MAR VENT , LLC, A Texas Una' tetl•,�;i�liiili;ty Company (herein called "grantee"), of the County of Lamar, State of Texas, vvMre its ma`ilirg address is 2625 Spur 139, Paris, 'Texas 75462, all ;f that certain tract or parcel of larl in t:auiar-06uiity, 'Texas, described as follows: SEE EXH113rr "A,`X17,AdNtDBERETO AND MADE A PART HEREOF FOR ALL NECESSARY PURPOS`FS� i The convey,ri e' evi�ienbed-by this deed is made subject to any and all casements, rights-of-way, restrictions, covensAti(, conditions aiid reservation ofrecord appl icable to the within described property or any part thereof. T0JfAVE A PTO HOLD the within described premises, together with all and singular the ,t rights ai d appur�tenndces thereto in anywise belonging unto SKY -MAR VENTURES, LLC, A Texas Company, its successors or assigns forever, and grantor hereby binds himself, his he rs,execut�rs, administrators, personal representatives, successors and assigns, to Warrant and Forever Defend,�611 and singular the said premises unto -MAR VENTURES, LLC, A Texas Limited Liabi ity Company, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part thereof. 1W4i3U-;eU;e;e U;$A311;euzz Uz:;If:bl HM rage of 4 anfflzz1 -4415`0' STEVE LANDERS THE STATE OF TEXAS THIS instrument was acknowledged before me on the. LANDERS. fl Nofku,"T'lublic, State o07`exas v DENISE MOFFI7T NOTARY PUBLIC STATE OF TEXAS. v MY COMM. EXP. 1210PJ25 NOTARY 10 390967-6 Q RDkMG RM -URN TO: Sk.)46r Ventures, LLC 2625 Spur 139 Paris, TX 75462 RRVAILED H �,jp� E LAW QFF14ZJL0F Casey Gain, Attorney (ar) Oo The Moore Law Firm, L.L.P. 100 N. Main, Paris, TX 75460-4222 I Wz;5;3U_zU;ez U313111U11 ww:pi i -m Fage 3 apf Ali .that cert' tr .0 0 3Yf 'a'. wn. to;;w ttf in Lamar`Copnt9, T and d K q: bxas A Y- bk� N6. `Being 'a part �Au Ve 14. Ck6y , Blo Ile of the City - of Pariso T�Yciia; Beginning 41,2%feet fti-th pfihe iiit or so tion: of Ahe .NB 1�6 WB-*31qe,6�.3rd st. -S. W.� line of West Shefrian StreWmi,4h t0i IL for - mealy designat6i' '�iK8�',:Ket:, Thence North 46�- more -ss to t 1q. r -Wite. the' 4th. trAct, de_6cri �d I Aeed Trofn 3; W* --Jopli� afid' Rae Joplin, to Chirlie'.'Wakd said treat; l07--oT,:r,6et -afid.vjto., Lula Waild.-by dd6d'; Januaty 24; 191+6.... as-drio'wn of in in "Hook' 86"' 2 Couhty Deed Recordsr.- .Therice'West. vith tIig:�Pia nEi - a stake - TheAce-SOUA 46.'8'feet,j.'a-8t-a.kA,.;­,• 'feet to�-the. �Ih:de of-beii Thence Zast':107-aI. - 9 -4 a Being the sarfie Property'-deidAbod -in 04 -do. d, Ir 6n� Clarkson, a vi'dov., EVY. lee. RaPqr,,,:,1ff .9-Aiam d', "do bait to- nON, -a., P -, -Ophelia. Kenyoi Goldke. Wright`Wrighf Jack Reeivetr ddated.Ocrtdb-er. .-U '1969,;; ft 10d in 396. Lamar CovAty all that certain lot or parcel of D the Larkin Rattan, Survey and part Beginning 11+3 ft.- Last of the with the EB line of 4th St. 8,W, foit Thence. last 40 ft, to the W-7qX Reed. ! / /' Thence Ndrth with the WB .tine Thence West 40 ft. 9 stak0w, Thence South 80 ft. t6,:`tJXe'%V1-a Ricks, City Engineer of the 'Gi�ty, 'br. 1946. To have.and to 0'. Wlrbed",!,'n Laimar County, Texas, part of (AIG,6k No. 118. ion of the NB line of Sherman St. 166ignated Travis St,, :k'>a lot conveyed by us to 1. IN, of ie Reed 'lot 80 ft. a stake;,' cjw,of beginning,, as surveyed by Tf. F. --P&rls, Texas on the 1st tday of � uly 0 151j3U-1U11 U:wl:i11lulz U1:;1/,b1 t'm rage 4 Ot 4 4 Marvin Lester of the (bounty of Lamar, State of Texas all that oer`Gain lot or parcel of land situated an. Lamar County, Texas, part of the L$rkin Rattan tirvey and part of Gity Block No. 118. • Beginning 103 tt. East of the intersection o. St. with the E. B. line of 4th St. S. W., formerly Thence North 80 feet, a. fence corner; the N. -B. line o� Sherman designated Travis; t.; Thence Last 27 feet, a stake, the S. E. corner oaf Thence North 59 feet, a stake, thb N. E. corner Thence East 27 feet, a feces corner; . Thence South 14 feet, a �enoe corner; Thence East f# feet, a corner; Thence South 41P feet a fence corner; 1phenoe West 21 feat, a stake; Thence South 80 feet, a stake; Thence West 40 feet to the place of beginning. To have and to hold etc. � Ed Harrisn lit; of Ed Ham-lr_t ; wt All that certain let or parcel of laEnd`41tu -d is la�nar Cduhty, Texas and described as felle4s, to-•wjt-.—" A part ok the Larkin Ragan Survey, within the corporate limits of the City of Paris on Vhe 'hvrth side of West'Sherman Street, and being the same lot ao iveye to ®;'V. Baceus by B. C. Hum hriee on AvVxst 2$, 1912, by deddof iecord in Vol. 14j, page 15 Lamar County Deed Reda. Beg Ng at the SR cos -mer 61",a/19t--fold by G. 1. Bread Adm. to X. V. Baccus an March --9, by deed of record in fol. 129, page 12 LamAr County Dead``4*c r: s; Thence last with the..Ai w ,5. `•lizev of West Skerman Street 4.0 feet; Then,ee Ne th $0 X0 Whence West 40 f et,.i3 BacggU5s N. c®riser Thence South wi.th.',Baeeuz-13 . d0 feet to t o place of be- Being the same prR�aeri��.,desgribed in the deed from X. L. Adams and wife J ula ,Ad'aEms, '`to Jack R. Reeves, dated June 7 19610 of recur , i, Later County Deed Reeord BQ®k 377.0 page 148, referenced he- a iiecesaary nurn®ses. State of - '1'exda� AU dL&t tauk tx+F or of land situated in Lamr county, Text and described as foijolgp, to -;Witt g_ __._a••A� aYt of the Larkin MttaA Survey within the corporate 13mitti of Paxis In Lamar CCunty, Toxins, tatuated at the IM caroar at tarseatiou of 8hermn atateet and 4th street OW; DkCtNNrNti at said corner► `•. TJISNCB North 80 feet, `TJM(X' Bast 63 feQt, TMWCE SOUth 00 feet to the \' TWest with this RD .ins a! Shhpim nline ofs PNstre street, 88• teaot to the P2A of begifting. The above deffor;UM0 property is th6 sam$ as that u`�sso131X�ai LA Caod froze C. z: gwoud' n striltor, to R. V. Daaoltst eC lbt, dtted iWroh 9. U09t xacordid in Mak 129, page 12e Deed Reoaxd , p a. tYe '� t �` t0 Which JA I�Y+n for all bebeL CITY OF PARIS, TEXAS APPLICATION FOR RESIDENTIAL TAX ABATEMENT Property Owner: Name Curtut; Name Planned: hWingAddress: Telephone Number: email: BuBder or Contact than current/planned owner): Name: .... . ..... - LCAD Ws [5�,13 � . ............ . . . . ............ . Summary Legal Description 1,0t: Block: Addition: r Full Legg 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— 2FMFNo. of Dwelling Units: J, Estimated Value of Improvements by type: Please attach a lending institution pre -loan approval letter. Attached: Yes No Estimated Start Date of Construction: Estimated Date of Completion of Projects) Description of Project (attach site plan, floor plan, etc.: ............ ... ... Applicant(s) SignaiILLM Date: Date: Page 7 of 7 g g1k L AFA99 WN.N1' J ' Y ' .� 11! ��� _ a r e i�arr I r ip lop t lil r Ni i O r� .•: °Intl #� z w e i 3 6 Y 9`• 111019 ANHUI ligR —r it. Z_ .t! ' f 1 WI s:,r:,'!. ...x;•_®- fi � 1f s c' i I ��' a 931 Ll 13 r I t �. 51 j_I�1 E i_!_e A.s�tis N N O N LO a W 2 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 "5 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 development within 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 "S 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 S. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 10th day of January, 2022. Paula Portugal, Mayo ATTEST: Ellis, City Clerk APPROVED AS TO FORM: Step iai ie H. Harris, City Attorney 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 er 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. M. 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 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 Pro jcrties — 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 Improvements 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 I' ofthe 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, Pwermittinng — 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 SewerTanLabor — 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 finther 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. o ilEhanee with other City Reguirements — The Applicant shall be fully responsible for compliance with all zoning, subdivision platting, and building code requirements as may specifically pertain to the subject parcel(s) under the approved Agreement. The applicant shall be My 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. L Preliminary Application Steps A. Applicant shall work with City Staffto identify eligible tax foreclosure City Trustee Page 4 of 7 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. 4, 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 (LCAD) 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. Page 6 of 7 CITY OF PARIS, TEXAS APPLICATION FOR RESIDENTIAL TAX ABATEMENT Property Owner: Name Current: Mailing Address: Name Planned: Telephone Number:................................................................................._.w_._..�� a..� email:....��.._. Builder or Contact (if different than current/planned owner): Name: Mailing Address: Telephone Number: email State GC License No: Property Parcel(s) For Low Cost Land Sale and Tax Abatement: (Please submit an attached list of addresses and/or LOAD 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 No Estimated Start Date of Construction: Estimated Date of Completion of Project(s) Description of Project (attach site plan, floor plan, etc.: Applicant(s) Signature: Page 7 of 7 Date: Date: