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26 - Tax Abatement Agreement for Lionshead Paris LLCItem No. 26 Memorandum TO: Mayor, Mayor Pro Tem, and City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Tax Abatement Agreement for Lionshead Paris, LLC DATE: June 27, 2022 BACKGROUND: On June 13, 2022, the City Council directed me to prepare a tax abatement agreement for a new tax abatement with Lionshead Paris, LLC ("Lionshead"). Lionshead is an Indiana corporation new to Paris which plans to build an assembly and warehousing plant for its business of assembling tire and wheel assemblies on property currently owned by the Paris Economic Development Corporation in the Northwest Business Park on NW Loop 286. PEDC will be entering a performance agreement with Lionshead as well by which PEDC will be conveying the property to Lionshead subject to performance standards and claw back provisions. The improvements, which will come in at a total cost of between approximately $20,000,000.00 and $23,000,000.00, will necessitate the hiring of at least 15 employees with an estimated 40 new employees eventually retained. The agreement requires that at least 15 employees be retained throughout the remainder of the agreement as well. The abatement is for 7 years and will be granted on a de-escalating basis: 100% for the first two years, 75% years 3 and 4, 50% for years 5 and 6, and 25% for year 7. The abatement expires on December 31, 2030. STATUS OF ISSUE: Pending City Council approval of tax abatement agreement. BUDGET: Seven year abatement on the improvements set out in the Agreement. RECOMMENDATION: Motion to adopt a resolution approving tax abatement agreement between City of Paris and Lionshead Paris, LLC in substantial conformance with the attached agreement and authorize the mayor to execute same on behalf of the city. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH LIONSHEAD PARIS, LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris did heretofore, on the 10th day of January, 2022, in Resolution No. 2022-002, elect to be eligible to participate in tax abatement agreements in order to maintain and enhance the commercial and industrial economic and employment base of the Paris area for the long term interest and benefit of the City and its citizens; and, WHEREAS, under the Texas Enterprise Zone Act (Texas Government Code Chapter 2303), and the Redevelopment and Tax Abatement Act (Texas Tax Code Sec. 312.2011) the designation of an area as an Enterprise Zone also constitutes designation of the area as a reinvestment zone (the "Reinvestment Zone"); and WHEREAS, pursuant to the 2020 Census, the Property within City of Paris, Lamar County, Texas, is included within an Enterprise Zone, as is shown in the print-out from the Office of the Governor of the State of Texas on its website in Exhibit 1 to Exhibit A, attached hereto and made a part hereof for all purposes; and WHEREAS, Owner has agreed to make the Improvements specified in the Tax Abatement Agreement attached hereto as Exhibit A, said Improvements related to the construction of a manufacturing and warehousing facility for the assembly and distribution of tires and wheel assemblies; and WHEREAS, the Owner has agreed to create and maintain at least fifteen (15) full-time equivalent employment positions; and WHEREAS, the contemplated use of the Improvements as hereinafter defined, in the amount as set forth in this Agreement upon and within the Property, and the other terms hereof are consistent with encouraging development of said Enterprise Zone in accordance with the purposes for which it was created and are in compliance with the City's policy on tax abatement incentives and all applicable laws; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the terms of the Tax Abatement Agreement and the property the subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by the City of Paris by Resolution No. 2022-002 and will lead to the economic development of the Enterprise Zone. Section 3. That the terms and conditions of the proposed Agreement attached hereto as Exhibit 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 Exhi it 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 27th day of June, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney STATE OF TEXAS COUNTY OF LAMAR TAX ABATEMENT AGREEMENT This Tax Abatement Agreement (the "Agreement") is entered into by and between the CITY OF PARIS, TEXAS, a municipal corporation, situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "City"), and LIONSHEAD PARIS, LLC, acting by and through its authorized officer whose signature appears below (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, the City Council of the City of Paris did heretofore, on the 10th day of January, 2022, in Resolution No. 2022-002, elect to be eligible to participate in tax abatement agreements in order to maintain and enhance the commercial and industrial economic and employment base of the Paris area for the long term interest and benefit of the City and its citizens; and, WHEREAS, under the Texas Enterprise Zone Act (Texas Government Code Chapter 2303), and the Redevelopment and Tax Abatement Act (Texas Tax Code Sec. 312.2011) the designation of an area as an Enterprise Zone also constitutes designation of the area as a reinvestment zone (the "Reinvestment Zone"); and WHEREAS, pursuant to the 2020 Census, the Property within City of Paris, Lamar County, Texas, is included within an Enterprise Zone, as is shown in the print-out from the Office of the Governor of the State of Texas on its website in Exhi • i l 1, attached hereto and made a part hereof for all purposes; and WHEREAS, Owner has agreed to make the Improvements specified herein, said Improvements related to the construction of a manufacturing and warehousing facility for the assembly and distribution of tires and wheel assemblies; and WHEREAS, the Owner has agreed to create and maintain at least twenty (20) full- time equivalent employment positions; and WHEREAS, the contemplated use of the Improvements as hereinafter defined, in the amount as set forth in this Agreement upon and within the Property, and the other terms hereof are consistent with encouraging development of said Enterprise Zone in accordance with the purposes for which it was created and are in compliance with the City's policy on tax abatement incentives and the ordinance creating such Enterprise Zone adopted by the City and all applicable laws; and NOW, THEREFORE, pursuant to Chapter 312 of the Texas Tax Code and the Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2020-002, the parties hereto do mutually contract and agree as follows: I. Term 1.1 The effective date of this Agreement is the 27th day of June, 2022, with the tax abatement being effective from and after January 1, 2024, or January 1St of the year immediately following completion of construction, and terminating on December 31, 2030 (an abatement period of seven (7) years (the "Abatement Period")). Said Abatement Period will terminate on December 31, 2030, regardless of when Owner completes the Improvements described in Sections II and III herein below. II. The "Property" - Area to be Improved 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Property located in Paris, Lamar County, Texas Plant and described in Exhi LiL 2, attached hereto and incorporated herein by reference, which Property is within the Enterprise Zone. III. Consideration: Improvements 3.1 The Owner shall construct and operate an assembling and warehousing plant including approximately 120,000 square feet under roof to be used in its business of assembling tire and wheel assemblies (herein called the "Improvements") at the Property located in Paris, Lamar County, Texas, which Improvements are more particularly described in Exhibit attached hereto and incorporated herein by reference. Owner commits herein to invest no less than TWENTY MILLION AND NO/100 DOLLARS ($20,000,000.00) to construct the Improvements, which shall be completed prior to December 31, 2023. All of said improvements shall be described in the City's Certificates of Completion defined in Section X, "Reporting Requirements." For the purposes of the default provision of this Tax Abatement Agreement (Section V), the Improvements will be deemed completed upon the issuance by the City of Certificates of Occupancy for the structures included in the Improvements. Once Owner has applied for said Certificates of Occupancy, the City shall not unreasonably delay the issuance of same. Notwithstanding the foregoing, however, Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God, any natural disaster, war, riot civil commotion, insurrection, governmental or de facto governmental action unless caused by acts or omissions of Owner, fires, explosions, accidents, floods, and labor disputes or strikes. 3.2 The Owner agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the Improvements. As good and valuable consideration for this Agreement, Owner further covenants and agrees that all 2 construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations, or Owner will procure a valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificates of Occupancy for the structures on the Property are issued or the Improvements are completed as agreed until the expiration of this Agreement, continuously operate and maintain the Property and the Improvements as a tire and wheel assembly and warehousing plant. IV. Consideration Jobs 4.1 The City has provided in its Guidelines and Criteria for Tax Abatements, that in order to be eligible for a tax abatement, a new employer must make a minimal capital investment of $1,000,000.00 and create at least ten (10) new jobs. Owner herein has committed to a minimum investment of $20,000,000.00, and has committed to creating at least fifteen (15) and up to forty (40) new full-time equivalent with benefits positions with an estimated direct payroll of approximately TWO MILLION AND NO/100 DOLLARS ($2,000,000.00). These fifteen (15) full-time equivalent with benefits positions shall be created and staffed within one (1) year of the City's issuance of the Certificate of Occupancy. 4.2 In order to qualify for the tax abatement provided for herein, Owner must both create said fifteen (15) full-time equivalent positions according to the above schedule and retain those positions throughout the remaining years of the abatement period. V. Default 5.1 In the event that (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or the expenditure for the Improvements does not meet the amount required herein; or (b) Owner allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such ad valorem taxes; or (c) Owner fails to create and retain the required full-time equivalent positions set forth herein and on the schedule set forth herein; or (d) Owner materially breaches any of the other terms and conditions of this Agreement, then this Agreement shall be in default. In the event the Owner defaults in its performance of either (a), (b), (c), or (d) above, the City shall give the Owner written notice of such default. If the Owner has not cured such default within sixty (60) days of said written notice, this Agreement may be modified or terminated by the City. Notice shall be in accordance with paragraph 13.3. As damages in the event of default, 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, together with interest to be charged at the statutory rate for delinquent taxes a determined by Section 33.01 of the Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owning, and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. VI. Tax Abatement 6.1 Subj ect to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of ad valorem Property taxes from the Property otherwise owed to the City shall be abated. Said abatement shall be an amount equal to the following percentages of the taxes assessed upon the increased value of the Improvements made by Owner to the Property described in Section III of this Agreement, over the value in the year which this Agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers thereof; provided that the Owner shall have the right to protest or contest any assessment of the Property and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest or contest: Year 1 100% Year 2 100% Year 3 75% Year 4 75% Year 5 50% Year 6 50% Year 7 25% For the purposes of this Agreement, the Base Value of the existing real property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2022. 6.2 The abatement granted herein shall be subject to and governed by the Criteria and Guidelines for Tax Abatement, a copy of which is attached hereto as Exhibit 4 and incorporated herein by reference, save and except that, in the event of a conflict between the requirements of Exhibit 4 and this Agreement, this Agreement shall control. 6.3 Owner covenants and agrees that subsequent to the date of this Agreement, any application by Owner for a new tax abatement for equipment or real property located within the Property and the Enterprise Zone applicable to this Agreement shall be subject to and governed by the City's Criteria and Guidelines for Tax Abatement in effect at the time of the new application. VII. No Conflict of Interest 7.1 The Owner represents and warrants that the Property does not include any Property that is owned or leased by a member of the Planning and Zoning Commission of the 4 City of Paris, nor by a member of the City Council approving, or having responsibility for the approval of, this Agreement. VIII. Conditions 8.1 The terms and conditions of this Agreement are binding upon and enforceable against and with respect to the successors and assigns of all parties hereto. 8.2 It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently; the City assumes no responsibility or liability in connection therewith to third parties; and Owner agrees to indemnify and hold the City harmless therefrom. It is further understood and agreed among the parties that the City, in performing its obligations hereunder, is acting independently; the Owner assumes no responsibility or liability in connection therewith to third parties; and, to the extent permissible by law, the City agrees to indemnify and hold harmless the Owner therefrom. IX. Compliance Provisions 9.1 xt ''s Right of Access to Records: The Owner agrees that the City, its agents and employees, shall have the reasonable right of access to records concerning the Owner's investment in the Improvements for the purpose of conducting an audit of the Project Improvements and Project costs. Any such audit shall be made only after giving the Owner at least fourteen (14) days advance written notice and will be conducted in such a manner as to not unreasonably interfere with the operation of the facility. Upon request, the Owner will provide the City with a detailed Asset Report with an itemized list of assets placed into service from the date of execution of this Agreement to the date of completion. The Asset Report will provide for each asset a unique serial and/or other identification number (if available), the date on which the asset was capitalized, the acquisition amount, and the accumulated depreciation amount. At the City's request, the Owner will provide actual invoices to support the amounts shown on the Asset Report. 9.2 City's,, Rights of Access to Property: The Owner further agrees that the City, its agents and employees, shall have reasonable right of access to the Property to inspect the Improvements in order to insure that the construction of the improvements is in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, the City shall have the continuing right to inspect the Property to insure that it is thereafter maintained and operated in accordance with the Agreement during the term of the Agreement. All inspections will be made only after giving the Owner written notice at least seventy-two (72) hours in advance, and such inspections shall be conducted in such a manner so as not to interfere with the operation of the facility. Representatives of the City inspecting the Property and Improvements shall be accompanied and by one (1) or more representatives of the Owner and shall sign an Agreement promising to maintain the confidentiality of any information they obtain in connection therewith except for the purposes of assessing and collecting ad valorem taxes and verifying or enforcing compliance with this Agreement, or as otherwise required by law. Said representative shall also be required to observe any facility rule and regulation applicable to the Property. Nothing herein shall be construed as limiting the City's ability to perform inspections or to enter the Property the subject of this Agreement. X. Reporting Requirements 10.1 Initial Report: The Owner further agrees that it will, by April 15, 2024, provide the City with a sworn report, written on Owner's letterhead and signed by a designated representative of Owner, which contains the following information relating to the improvements completed in the year 2023: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property as of January 1, 2022, prior to the construction of the Improvements; (b) Detailed description of the Improvements; (c) A detailed description of any miscellaneous items of office equipment and the actual cost of such added office equipment; (d) A copy of or identification of plans and specifications of constructed improvements and the location of the same for inspection by City's certification team; (e) A detailed list of and the actual cost of added machinery and equipment; (f) The actual cost of capital Improvements; and, (g) The date of substantial completion of the Improvements as defined in paragraph 3.1 hereof. 10.2 Annual ReDort on Year of the Abatement Perio : In addition to the report required in Paragraph 10.1 hereinabove, Owner further agrees that by April 15th of each year of this Agreement beginning in the year 2025, it will provide the City with an annual sworn report which shall certify, in writing, that it is in compliance with each applicable term of this Agreement. Such annual report shall be furnished in the form attached hereto as Exhibit 5 and incorporated herein by reference and shall reflect the prior fiscal year. Owner shall attach thereto copies of the employer reference summary page of its Texas Workforce Commission Employer's Quarterly Reports for the calendar year immediately preceding the date of the annual report required by this section, and the report shall contain a sworn statement signed by the Plant Manager or an Officer of the Company certifying that the information provided in the summary page is a true and valid report filed with the Texas Workforce Commission. 10.3 The reporting requirements and deadlines set forth herein are an integral and material part of this Agreement, and Owner acknowledges that failure to timely submit any report or sworn statement required herein is a breach and default of this Agreement as set forth hereinabove. Owner further agrees to timely submit said reports and/or sworn statements without prompting by the City. 10.4 Owner shall submit all compliance reports required to by this section via certified mail, return receipt requested, to: City of Paris c/o Office of the City Attorney P.O. Box 9037 Paris, Texas 75461-9037 Alternatively, said reports may be delivered personally to the Office of the City Attorney at 135 SE 1st St., Paris, Texas 75460. XI. City's Certificate of Completion 11.1 Within thirty (30) days of receipt of each Annual Report on Improvements required by paragraph 10.1 hereinabove, or as soon thereafter as practicable should the City require additional information from the Owner, the City shall: (a) review same for compliance with the terms of this Agreement; (b) verify that the Improvements identified in the Report and required by the terms of this Agreement have been completed; (c) and, if the required Improvements have been made, deliver a Certificate of Completion in the forms attached hereto as Exhibit 6 and executed by the Mayor to the Chief Appraiser of the Lamar County Appraisal District. The City shall attach to said Certificate of Completion a copy of the information provided by Owner in its Annual Report on Improvements as an identification of the Improvements upon which the tax abatement is to be granted. 11.2 In the event that the City requires additional information in order to conduct the review and verification contemplated by paragraph 11.1 hereinabove, the City shall notify the Owner of same as soon as is practicable, but no later than thirty (30) days after receipt of the Annual Report on Improvements. 11.3 Nothing in this section shall prohibit the City from exercising its right to declare Owner in default or Owner's right to cure same in accordance with the terms of Section V hereinabove. 7 XII. Authority to Contract 12.1 This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 28th day of January, 2019, authorizing the Mayor to execute the Agreement on behalf of the City. 12.2 This Agreement was entered into by Lionshead Paris, LLC pursuant to the authority granted to the authorized official whose signature appears below. 12.3 This Agreement shall constitute a valid and binding Agreement between the City and Owner when executed in accordance herewith, regardless of whether any other taxing unit executes a similar Agreement for tax abatement. XIII. Legal 13.1 No officer, official or agent of the City has the power to amend, modify or alter this Agreement or waive any of its conditions or to bind the City by making any promise or representation not contained herein. 13.2 This Agreement, except by operation of law, shall not be assigned or transferred by Owner, without the prior written consent of City, which consent shall be at the sole discretion of the City. 13.3 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, addressed to the designated representative of the respective parties which are designated as follows: OWNER: Lionshead Paris, LLC Attn: Gary Graham and Galen Miller 305 Steury Ave. Goshen, IN 46528 CITY: CITY OF PARIS, TEXAS Attn: City Manager P.O. Box 9037 Paris, TX 75461-9037 With a copy to: City Clerk, City of Paris, Texas (address same as above) City Attorney, City of Paris, Texas (address same as above) 13.4 If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of this Agreement are declared to be severable. 13.5 This Agreement sets forth the entire understanding between the parties, and any other understandings or agreements shall be canceled and superseded by this Agreement upon the date of execution hereof. None of the terms of this Agreement shall be waived, discharged, altered or modified in any respect, except by an Agreement in writing signed by both parties and specifically referring to this Agreement. The captions in this Agreement are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions. This Agreement is performable in Lamar County, Texas, and shall be governed by, construed and enforced in accordance with the laws of the State of Texas. The provisions of this Agreement shall apply to, bind and inure to the benefit of the City, Owner, and their respective successors, and permitted assigns, if any. 13.6 Venue for any actions arising under this Agreement shall lie exclusively in the courts of Lamar County, Texas for any State Court action, and in the U.S. District Court for the Eastern District of Texas for any federal court action. 13.7 Owner and the City have both contributed to the drafting of this Agreement, and no ambiguity, if any, contained in this Agreement shall be construed against either party. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date set forth below. WITNESS our hands this ® day of 2022. THE CITY OF PARIS, TEXAS By:.- Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney LIONSHEAD PARIS, LLC Los ATTEST: Title: Title: Date: 10 LIST F EXHIBITS: 2020 Designation of Enterprise Zone which includes the Property 2. Map of the Property and Property Description Description of Improvements 4. Resolution No. 2022-002; Criteria and Guidelines for Tax Abatement 5. FORM: Certificate of Completion 6. FORMS: Certificates of Compliance 11 A J J N .r cu CL N N C O_ J i i N C O N N .L Q L— c W 7 Cb M N N N O IN O N CD F� Hl JAMBI Y U O FO N D C N U N m X 9 E x y � v Z W c 6 m Q yuyp — N V �w o i m CD LO- M O .... co p c qr C7 c r 00 a N to CL F� C ui O C U S c = i ww 2~ w W N Wc W Q O N ow 7 Cb M N N N O IN O N CD F� Hl JAMBI Y U O FO N D C N U N m X 9 b;f z Fxhl Field Notes Being a 19.58 acre tract of land in the Francis Morrison Survey, Abstract No. 592 and the John Herrington Survey, Abstract No. 436, in the City of Paris, Lamar County, Texas; being all of the former Lot 1, Block A of Northwest Paris Industrial Park, as recorded in Envelope 386-C, L.C.P.R.; and being part of that certain tract of land described in deed to Paris Economic Development Corporation, dated November 18, 2003, recorded in Vol. 1403, Pg. 53, L.C.O.P.R, said 19.58 acre tract of land is more particularly described by metes and bounds as follows: BEGINNING at a 1/2 -inch iron rod with cap found in the south right-of-way line of Loop Highway 286 (width varies according to Vol. 361, Pg. 157 and Vol. 557, Pg. 643, L.C.D.R.) for the northwest corner of Lot 2 of said Block A and the most northerly northeast corner of the herein described tract, from which a 1/2 -inch iron rod with cap found in the south right-of-way line of Loop Highway 286 for an angle point in the north boundary line of said Lot 2 bears North 71 deg. 22 min. 13 sec., a distance of 175.65 feet; 1.) THENCE South 22 deg. 09 min. 59 sec. East, along the west boundary line of said Lot 2, a distance of337.75 feet to a 1/2 -inch iron rod with cap found for the southwest corner of said Lot 2; 2.) THENCE North 68 deg. 59 min. 47 sec. East, along the south boundary line of said Lot 2, a distance of 215.09 feet to a 1/2 -inch iron rod with cap found in a curve to the right in the west right-of-way line of 30th Street NW (80 feet wide according to Env. 386-C, L.C.P.R.) for the southeast corner of said Lot 2' 3.) THENCE along the west right-of-way line of 30th Street NW as follows: with said curve to the right having a radius of 915.00 feet, a central angle of 26 deg. 51 min. 10 sec., an arc length of 428.83 feet, and a chord that bears South 17 deg. 21 min. 51 sec. West, a distance of 424.92 feet to a 1/2 -inch iron rod with cap found for the end of said curve to the right; South 30 deg. 49 min. 42 sec. West, a distance of 22.81feet to a 1/2 -inch iron rod with cap found for the beginning of a curve to the left; with said curve to the left having a radius of 1030.00 feet, a central angle of 18 deg. 07 min. 28 sec., an arc length of 325.82 feet, and a chord that bears South 21 deg. 42 min. 43 sec. West, a distance of 324.46 feet to a 1/2 -inch iron rod with cap found for the end of said curve to the left and the beginning of a curve to the right; with said curve to the right having a radius of 14.00 feet, a central angle of 89 deg. 22 min. 15 sec. an arc length of 21.84 feet, and a chord that bears South 56 deg. 56 min. 07 sec. West, a distance of 19.6 feet to a 1/2 -inch iron rod with cap found in the north right-of-way line of Park Street (80.00 feet wide at this point according to Env. 386-C, L.C.P.R.); 4.) THENCE North 77 deg. 39 min. 34 sec. West, along the north right-of-way line of Park Street, a distance of35.95 feet to a 1/2 -inch iron rod with cap found for an interior corner of Northwest Paris Industrial Park; 5.) THENCE along the most westerly south boundary line of Northwest Paris Industrial Park as follows: North 76 deg. 48 min. 33 sec. West, a distance of 83.99 feet to a 1/2 -inch iron rod with cap found for the beginning of a curve to the left; with said curve to the left having a radius of 2240.00 feet, a central angle of 15 deg. 56 min. 17 sec., an are length of 623.11 feet, and a chord that bears North 84 deg. 36 min. 51 sec. West, a distance of 621.10 feet to a 1/2 -inch iron rod with cap found for the end of said curve to the left; South 87 deg. 25 min. 49 sec. West, a distance of 126.44 feet to a found 1/2 -inch iron rod with cap; North 85 deg. 54 min. 11 sec. West, a distance of 100.12 feet to a found 1/2 -inch iron rod with cap; North 89 deg. 38 min. 23 sec. West, a distance of 127.67 feet to a 1/2 -inch iron rod with cap found in the monumented cast right-of-way line of 34th Street NW (monumented width varies; no dedication found) for the southwest corner of Northwest Paris Industrial Park; 6.) THENCE along the monumented east right-of-way line of 34th Street NW and the west boundary line of Northwest Paris Industrial Park as follows: North 02 deg. 39 min. 40 sec. East, a distance of 266.74 feet to a found 1/2 -inch iron rod; North 01 deg. 50 min. 56 sec. East, a distance of 110.98 feet to a point in a curve to the right in the south right-of-way line of Loop Highway 286 for the northwest comer of said Block A, from which a found 1/2 -inch iron rod with cap bears South 01 deg. 50 min. 56 sec. West, distance of 0.29 feet, and a TxDOT Type I concrete monument found in the south right-of-way line of Loop Highway 286 bears South 50 deg. 53 min. 46 sec. West, a distance of 190.74 feet, 7.) THENCE along the south right-of-way line of Loop Highway 286 as follows: with said curve to the right having a radius of 2697.79 feet, a central angle of 15 deg. 34 min. 25 sec., an arc length of 733.29 feet, and a chord that bears North 60 deg. 42 min. 32 sec. East, a distance of731.04 feet to a TxDOT Type I concrete monument found for the end of said curve to the right; North 68 deg. 19 min. 28 sec. East, a distance of 386,24 feet to a set 1/2 -inch iron rod with cap stamped "RPLS 5469'; North 71 deg. 22 min. 13 sec. East, a distance of 24.73 feet to the POINT OF BEGINNING and containing 19.58 acres of land. oM ftIN� o °1 'i'o01m�w" 1 AD OV ( III°IV I E W Lionshead Specialty Tire & Wheel LLC (Lionshead), a family-owned business, is experiencing significant growth in the manufacturing sector. Our headquarters is located in Goshen, Indiana with rapidly growing production facilities in Indiana, Texas, North Carolina, Idaho, Georgia and Minnesota. We specialize in the development, manufacturing, and distribution of tire and wheel assemblies and component parts for the recreation vehicle, marine, livestock, cargo, and utility trailer industries. Our intense focus on customer experience and satisfaction levels is made evident in our customer service and quality products. We make it a priority to reinvest in new products and services to consistently provide the best value exchange in a constantly changing environment. At Lionshead, we focus on being best -in -class by providing a first-class working environment, retaining and developing talented employees, operating our business with integrity and character, valuing our employees by helping them become the best version of themselves, and giving back to our community. We are excited for the opportunity to be part of the City of Paris and Lamar County and serving the towable trailer and recreational vehicle industry throughout Texas, New Mexico, Oklahoma, Arkansas, Kansas and Louisiana. The organization plans to build a 120,000 sgft plant in Paris, Texas. This green -field development will include investments in property, plant and equipment over $20,000,000 and bring over 40 new jobs to the area over a 5 -year period. We believe the environment in which our team members work is an important part of our corporate culture. This includes an emphasis on state-of-the-art humanities and space that supports employee welfare. This includes the thoughtful use of windows to bring natural light into every work area, cleanliness throughout, terrazzo floors, personal lockers, an inviting employee lunch room, expansive bathrooms, focus on safety, and Lionshead provided complementary uniforms and personal protective equipment. Lionshead also offers every team member competitive pay, benefits (medical, dental, vision), matching 401k, performance incentives that subsidizes food and Lionshead SWAG and many other unique cultural approaches that are rarely seen in a manufacturing environment. Upon breaking ground, we expect the project will take approximately 18 -months to complete. Our overall investment in the City of Paris and Lamar County is expected to be the following: Overall Capital Investment Land Building Equipment Total Capital Average Annual Salaries 6. 10 Xhil 6,1 t 's $0 $16,500,000 $6,500,000 $23,000,000 $2,000,000 y14 AI \myj��m� moimoo� � � �� iuumuuuu a ��I� wu SALES AND STAFFING PROJECTIONS Sales Asys (monthly) Sales $ (monthly) Sales Asys (yearly) Sales $ (yearly) Personnel - Operations Total Production Personnel Sales TotolSales Personnel - Salaries Operations Sales Total Labor STAFFING DETAILS 2 Texas Economic Development 2024 mm 2024 2025 2026 2027 2028 15,556 17,778 20,000 22,222 24,444 $2,333,333 $2,666,667 $3,000,000 $3,333,333 $3,666,667 186,667 213,333 240,000 266,667 293,333 $28,000,000 $32,000,000 $36,000,000 $40,000,000 $44,000,000 30 32 35 37 40 4 4 4 4 4 $1,404,360 $1,483,400 $1,601,960 $1,681,000 $1,799,560 $477,000 $477,000 $477,000 $477,000 ........ $477,000 1 .....�.... $ 881,360 .....--_ $1,960,400 $2,078,960 $2,158,000 $2,276,560 2 Avg Salary .... 2024 mm ^ 2025 20 2027 2028 Operations Plant Manager $ 90,000 1 1 1 1 1 Asst Plant Manager $ 70,000 1 1 1 1 1 Shipping/ Receiving Manager $ 55,000 1 1 1 1 1 CDLA Drivers $ 67,500 4 4 4 4 4 Production $ 39,520 14 16 19 21 24 Production - forklift $ 41,600 3 3 3 3 3 Receiving Staff $ 39,520 4 4 4 4 4 Receiving/Shipping forklift $ 41,600 2 2 2 2 2 Total Production 30 _ 32 35 37 40 Sales Regional Sales Manager $ 130,000 2 2 2 2 2 Market Analyst $ 67,000 1 1 1 1 1 Regional Sales Director 150,000 1 „ 1 mmmm 1 . .......�� 1 -- 1 TotolSa/es 4 4 4 4 4 Personnel - Salaries Operations $ 1,404,360 $ 1,483,400 $ 1,601,960 $ 1,681,000 $ 1,799,560 Sa les $ 477,000 $ 477,000 $ a 477,000 $ wwwww477,000$ 477,000 TotalLabor $ 1,881,360 $ 1,960,400 $ 2,078,960 $ 2,158,000 $ 2,276,560 Average salary per employee $ 55,334 $ 54,456 $ 53,307 $ 52,634 $ 51,740 Average per hour basis $ 26.60 $ 26.18 $ 25.63 $ 25.30 $ 24.88 2 pmiuui � N muu� wq N nuuu� � �gpuu wn� � uwno Investment Overview Building Building $ 15,000,000 Building Contingency (10%) $ 1,500,000 Total Building $ 16,500,000 Equipment and Furniture (3 -year Investment) Items Qty Total Air Compressors - Nitrogen System & Components 1 $ 1,477,896 Airline Piping 1 $ 300,000 Belt Conveyor (Prep Conveyors) 6 $ 59,407 Roller Conveyor (Prep Conveyors) 1 $ 25,786 Camera Security System 1 $ 2,229 Morrisette - Shrink Wrap Machine 2 $ 69,943 Landmark Security System 1 $ 40,907 L/A Wheel Systems Inflation Machines 2 $ 800,000 Forklift Toyota 5000# - 2 $ 66,520 Forklift Toyota 6500# 1 $ 39,000 Baler for Recycables. 2 $ 60,750 Office Furniture/Breakroom/Conf. Room 1 $ 246,114 FMH Stationary Conveyors (Receiving) 2 $ 418,040 Tire Mounters 9 $ 135,000 Big Ass Fans 1 $ 54,559 Gorbel Crane - Lift Assist 1 $ 59,681 A/V Equipment 1 $ 12,859 IT Setup (Cable and Internetnet_Wiring & Equipment) 1 $ 65,782 Cell Phone Coverage/Boosters - Teledata 1 $ 27,802 Door Security system 1 $ 70,091 Guard Rails/Safety Gates/Pole Potectors 2 $ 12,500 Production Work Tables/Podiums 1 $ 9,375 Tools and Production Equipment 1 $ 9,375 Kitchen Appliances 1 $ 6,250 Floor sweeper 1 $ 27,723 Printers - Gordon Flesch 1 $ 22,500 Pool Cars 2 $ 100,000 Truck / Trailer (4) 4 $ 1,000,000 LSolar Panels 1 $ 750,000 Contingency $ 500,000 Total Equipment and Furniture Investment $ 6,470,087 TOTAL ESTIMATED CAPITAL INVESTMENT $mM22,970,087 3 c� g A ra L4 o yy g'g-D4.`x � m 3.g W ��l p I IN, :3 gSAS �a m 01 c�g � ca kill 2'— � �t��� �o m N m � Q �• f[aF�b �§ 'na 0 ....... . . . . - � . « �! \ .. \ ./� .. � »� . .. . , - ------- ---------- - NP, ..... .. ... . ..... . . ...... . . ....... .. . .. . ..... - - - - - --------- --"­,-"­-- . ......... ...... .. ............ ...... . ............. tf� W� f i N mu 751 Coui I ^ I g _ � , , � — s fi Ln �.r m L r m m ry S m <. ..� 1 II M ry o ®a Dumb q, �m 1 !bp a . }. , .�' C: 111 t- I yy. • t° I i� i9 13 ...... ,. , ,. __... ..... . . ... _ RESOLUTION NO. ,.2022--002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS AUTHORIZING THE CITY TO BE ELIGIBLE TO PARTICIPATE IN PROPERTY TAX ABATEMENTS AND APPROVING GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENTS IN THE CITY OF PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Section 312.002 of the Texas Tax Code requires local taxing units to state every two years their intent to participate in property tax abatement agreements, and to adopt guidelines and criteria for granting tax abatements, and to conduct a public hearing prior to said authorization and adoption; and WHEREAS, the City Council last adopted Criteria and Guidelines for Tax Abatement on January 13, 2020; and WHEREAS, on January 10, 2022, the City Council conducted a public hearing as required by law; and WHEREAS, after considering public comment, if any, at said public hearing, the City Council of the City of Paris, Texas hereby reaffirms its intent to be eligible to participate in property tax abatements in accordance with Chapter 312 of the Texas Tax Code and to adopt the Guidelines and Criteria for Tax Abatement attached hereto and incorporated herein as Exhibit A: and WHEREAS, a three-quarters majority vote of the City Council of the City of Paris, Texas is required to amend the Guidelines and Criteria for Talc Abatement; and WHEREAS, the City Council elects to readopt the Guidelines and Criteria for Tax Abatement adopted on January 13, 2013 without amendment; 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 elects to be eligible to participate in a property tax abatement program and approves and adopts the Guidelines and Criteria for Tax Abatement 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 10th day of January, 2022. Yortn��."��`� Paula Portugal, Ma Bilis, City Clerk �..,a.� rte' ;/`•� Stephanie H. Harris, City Attorney (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FORTAXABATEMENT I. General Purpose and Objectives. The City of Paris (City) and Lamar County Government (County) (collectively, herein called the "Taxing Jurisdictions") are committed to enhancing the competitiveness and expansion potential of local industry; to attracting and encouraging new manufacturing industry and investment; to improving the City of Paris, Lamar County and its infrastructure, which attracts and supports development; and, to expanding the tax base, employment opportunities, and the overall quality of life for its citizens. Therefore, the governing bodies of the Taxing Jurisdictions will give consideration, on a case-by-case basis, to providing tax abatements to the owners of real and personal property for projects that stimulate economic growth and diversification in the geographic areas served by the Taxing Jurisdictions, according to state law and consistent with these policies, criteria and guidelines. Tax abatements maybe made available to industrial, manufacturing, distribution, service facilities, or any "primary jobs" creating industry as defined by the Economic Development Act of the State of Texas. The facility must be currently in, or locating in the areas served by the Taxing Jurisdictions, and located in a designated Enterprise Zone or Reinvestment Zone. New facilities and structures as well as the expansion and modernization of existing facilities and structures, will be considered. Evaluation of a tax abatement request will be based on the information provided in the tax abatement application. However, the City of Paris and Lamar County are under no obligation to provide tax abatements to any applicant. The Paris City Council acts as the lead entity for projects located in the City limits. The Lamar County Board of Commissioners acts as the lead entity for projects in Lamar County, which are located outside of the City limits. All governing bodies of the Taxing Jurisdictions have adopted like policies, criteria and guidelines and will consider tax abatement requests that qualify thereunder. II. Definitions. Definitions are provided as an Appendix A. III. Designation of a Reinvestment Zone. For any facility located within the area served by the Taxing Jurisdictions to be eligible for tax abatement it must meet the criteria for designation as a tax abatement reinvestment zone as set forth in the Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312, The City or County may designate an area as a reinvestment zone in accordance with the criteria and procedural requirements set forth in the Property Redevelopment & Tax Abatement Act, as amended (Texas Tax Code See. 312.401 (b)). Pursuant to Texas Tax Code Sec. 312.2011, designation of an area as an enterprise zone under Chapter 2303 of the Texas Government Code constitutes designation of the area as a reinvestment zone without further hearing or procedural requirements other than those provided under said Chapter 2303. IV. Tax Abatement Authorized. The Taxing Jurisdictions, through their elected governing bodies, may agree in writing with the owner and/or lessee of taxable real and/or personal property that is located in a reinvestment zone, but that is not in an improvement project financed by tax increment bonds, to exempt from. taxation Im (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT a portion of the value of the real property, or of personal property located on the real property, or both. The period of the abatement granted under the agreement shall not exceed the term authorized by law. Such agreement will be based on the condition that the owner or lessee of the property makes specific improvements or repairs to the property. An agreement may provide for the exemption of the real property in each year covered by the agreement only to the extent its value for that year exceeds the b ase year value. An agreement may provide for the exemption of personal property located on the real property in each year covered by the agreement other than personal property that was located on the real property at any time before the period covered by the agreement. Inventory or supplies cannot be abated as personal property. Tax abatements may only be granted for additional value of eligible property improvements made subsequent to and specified in an abatement agreement between the Taxing Jurisdictions and the property owner or lessee subject to such limitation as the Taxing Jurisdictions may require. The additional value must exceed any reduction in the fair market value of other property of the owner already on the tax roll within the area served by the Taxing Jurisdictions. Change in appraised value does not qualify for abatement except in an instance where a previously vacant authorized facility is utilized. Value added to the tax rolls must come from actual capital expenditures. The negotiation of tax abatement agreements will be conducted by the Paris Economic Development Corporation's CTEDC") executive director, in close consultation with the city manager. In determining where and how tax abatements will be utilized, the executive director will examine the potential return on the public's investment. Return on public investment will be measured in terms of (i) jobs created, (ii) jobs retained in cases of existing employers within the Taxing Jurisdictions, and (iii) broadening of the tax base and expansion of the economic base (e.g. capital investment, payroll, local spending, etc.). V. Eligibility Criteria for Tax Abatement for Real and Personal Property A property owner and/or lessee shall be eligible for tax abatement only upon the following criteria. I lt�biltt ° Criteria for Tax Abatement Authorized 1. An authorized facility is used for manufac taring, research, regional distribution, regional services, regional Facility tourist entertainment, other basic industry, or any primary jobs creating industry. (See Appendix A for definitions.) 2. A new authorized facility must be created, or an existing authorized facility must be improved, modernized or expanded. 3. If a leased authorized facility is granted abatement, the agreement may be executed with the lessor and/or lessee, depcnding upon the particular circumstances ofthe proposed project. If the agreement is with the lessor, lessor shall demonstrate binding contracts with the lessee to guarantee compliance with the terms of the Pro ble 2. Elie propropertyv for which abatement created, ... ._, e �� —_ � _.,. a+-reemen . gi property ' newly created, or improvements to an existing, authorized facility. Property gr y be granted includes nonresidential real property and/or tangible personal property not located on the real property at any time before the abatement agreement becomes effective. 3. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the operation and administration of the authorized facility. I 4. Inventory or supplies shall not be eligible for abatement. Historic For historic property located in the City of Paris Historic District, see Chapter 30, Article IV of the City of Paris Property Code of Ordinances - Tax Exemption for Historically Significant Sites. Contact the City of Parisi Community Value and Term of Abatement Abatement Evaluation Criteria Economic Qualification Taxability (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT Development Department for additional mformation on these and other programs offered by the Cite of Paris. e __ 1. The governing bodies of the local 'faxing Jurisdictions will decide whether to grant a tax abatement to an applicant, and the amount, if any, of such abatement, on a case-by-case basis and in accordance with these Policies, Criteria and Guidelines. 2. The term of abatements granted under any agreement may not exceed that permitted by applicable state law. 3. The amount of the abatement shall be based upon a percentage (0 to 100%) of all or a portion of the eligible property within the authorized facility. 4. Abatements may only be granted for the additional value of eligible real and personal property improvements made pursuant to and listed in the agreement between the Taxing Jurisdictions and property owner and/or lessee, subject to such limitations as the Taxing Jurisdictions may require. 5. Real property tax abatement may be granted only to the extent that its value for each year of the agreement exceeds its value for the year in which the agreement is executed. 6. If a modernization project includes the replacement of improvements within an authorized facility, the value eligible for abatement shall be the value of the new unit(s), less the value of the replaced unit The criteria used to evaluate a proposed project application for abatement includes, but is not limited to: 1. The dollar amount of the increase in the tax roll. 2. The number of jobs created or retained by the employer involved. 3. The possible effect on attracting other taxable improvements into the Taxing Jurisdictions. 4. The nature of and overall effect on the Taxing Jurisdictions. 5. The effect on the safety, health, and morals ofthe Taxing Jurisdictions' residents. 6. Any substantial long-term adverse effect on the provision of the Taxing Jurisdictions' services or tax bases. 7. Meeting all relevant zoning requirements. 8. Consistent with the comprehensive plan of the City of Paris and County of Jamar. 9. The types and cost of public improvements and services (water and sewer main extensions, streets and roads, etc. diction. 10 The ty es and allues ofu bhcjnn provements to be furnished by the applicant. To be eligible to receive tax abatement, the planned improvements: 1. Must be reasonably expected to increase the appraised value of the property. 2. Must be expected to prevent the loss of employment, or assist in the retention or creation of jobs in the Taxing Jurisdictions during the term of the agreement. 3. Should not be expected to solely or primarily have the effect of merely transferring existing employment from one pari of the Taxing Jurisdictions to another without demonstration of increased future investment (dollars or jobs) or unusual circumstances whereby without such a move employment is likely to be reduced. 4. Must be necessary because capacity cannotbe provided efficiently utilizing existing improved property when is made for necess:sr� rmi�rovemenis or relevant P-ovemmental actions. During base � of the eligible as determined each year by the Lamar County Appraisal ^^e reasonable allowance agreement, taxes shall be payable as follows: y g• property praisal District, shall be , fully taxable. 2. The additional value of eligible property above the base year value shall be taxable in the manner described in the agreement 3. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the real and personal property comprising the reinvestment zone. 4. Each year, the employer, company or individual receiving an abatement pursuant to an agreement shall fiunish the assessor with such information as maybe necessary to determine the amount of any abatement. 5. Once such value has been established, the Chief Appraiser shall notify the affected Taxing Jurisdictions which levy taxes on such property and also notify the Paris EDC. 6. The employer, owner or lessee of eligible property requesting tax abatement within a reinvestment zone shall, prior to the commencement of eligible property improvements, agree to expend a designated sum of mond and to create or retain a certain number of jobs, or annual payroll as further defined below. ll and Job Creation Criteria Caiital Investtmenl Pavro U (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT A tax abatement may be made available to employers who are increasing new capital investment and creating jobs with respect to an authorized facility located anywhere within the area served by the Taxing Jurisdictions based on the following criteria. 1. To be eligible for any tax abatement, there must be a minimum capital investment in the authorized facility of $1,000,000 and at least ten (10) new jobs added to the new employer's labor force. 2. Any project with a capital investment of more than twenty-five million dollars ($25,000,000), AND accompanied by a newly created minimum annual payroll of two and one-half million dollars ($2,500,000), OR creating more than two hundred twenty-five (225) jobs will be individually negotiated. 3. As specified in state law, no abatement will be granted for more than 10 years and the total abatement shall not exceed 100%. 4. A newly created business must be (or will be) located within an enterprise zone or a designated reinvestment zone. 5. The taxing jurisdictions recognize a significant difference in the valuation of real property versus personal property. Because of depreciation schedules, the abatement of personal property could result in a tax exemption. For this reason, the abatement schedule for personal property versus real property may be different. Each industrial account is looked at and valued on an individual basis by the Lamar County Appraisal District (LCAD). The typical depreciation used for industrial accounts by LCAD is as follows: a. Computers — 3 year life b. Furniture & Fixtures —10 year life c. Vehicles— 7 to 10 year life (depending on type) d. Machinery & Equipment —15 year life (maybe longer or shorter depending on the type) For each abatement request the PEDC will evaluate the equipment (personal property) investment and useful life separate from the real estate (real property) investment to determine the length of the abatement for each. If personal property should become obsolete and be replaced while under an abatement agreement, the replacement personal property is not eligible for abatement. The charts below provide capital investment guidelines to qualify for tax abatement and the related schedule and percentage of abatement. For Ca ital Investment ($1M minimum investment AND 10 jabs for new employers ) .... j Amount of Investment I Year 1( Year 2 Year 3 µYear 4 Year fi Year 6 Year 7 m $1,000,000 to $5,000,000 1 70% 60% 1 50% 40% 30% 20% 10% $5,000,001 to $20,000,000 80% ; 70% 60% 50% 40% _ _30°10 „ 20% $20,000,001 to $25,000,000 _ n 90% 80%�_ 70% 1 60% 50%�.. 40% 30% $25,000,001 and Above Forprojects with capital investment above $25MAND $2.5Min new annual payroll OR creating more than 225 new jobs, the term and percentage of the abatement are both . !!S oti ble, but cannot exceed 10 years or 100°Jw _ 9. An additional 20% abatement for neve job creation is available based on the following requirements: a. A project that creates a minimum of 10 new jobs. i b. The new job wages are equal to or greater than the current County average wage for all private sector jobs excluding �odati. _ ...—.. u e a , Commission �� retail trade and accommodation and food services ($41,158 annually for 20,13 Source Texas Workforce �� (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT via www tracer2 cgm. (Note: This represents 547 companies, 10,470 jobs and 56% of all private sector employment in .Lamar County.) l c. The taxing jurisdictions and the company must agree to include measuring, tracking and annual reporting of the net job increases (existing jobs plus new jobs) for the entire term of the abatement agreement. ..__ �.m... For Net New .. .... (N Job Creation , .._ _ _ ion and r 1Retention of Net Net New Jobs ew 1. 10 new jobs minimum. 2. New job wages � or> average annual wages for private sector jobs in Lamar County. (Excluding retail. accommodations, food service. See Item 9.b. above.) 3. Agree to maintain existing base and new jobs during the entire term of agreement. 4. ;Year 1 cannot exceed 100%. 20% 20% � r 4 Year 5 Year b Year 7 0% 20% 20% 20% VI. Tax Abatement for Existing Employers Regarding Real or Personal Property. The Taxing Jurisdictions recognize the value of its existing employers to the well-being of the City and County. The Taxing Jurisdictions desire to encourage existing employers to remain in the Taxing Jurisdictions and to improve their respective businesses and industries, as well as their profitability. Accordingly, if an existing employer (as opposed to a newly created business or industry moving into the Taxing Jurisdictions), owns or leases an authorized facility and has plans to improve such property by constructing new improvements on its real property and/or adding new personal property to its authorized facility which qualify for tax abatement under these Policies, Criteria and Guidelines, such employer maybe eligible for tax abatement with respect to such improvements to its real property or its new personal property under the provisions of Article V above, even if no new jobs or newly created minimum annual payroll are created. In projects involving existing employers, the criteria for tax abatements for improvements to real property and for new personal property at authorized facilities set forth in Article V above shall be (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FORTAXABATEMENT waived, provided state law is fully complied with. The local taxing jurisdictions encourage existing employers to retain as many jobs and as much existing annual payroll as is economically feasible for the existing employer, while remaining competitive in its industry. VII. Greenfield projects In order to encourage the development of greenfield properties and also to be able to expedite certain new projects, the criteria for tax abatements for improvements to real property and for new personal property at authorized facilities set forth in Article V above shall be waived for projects exclusively involving greenfield properties, provided state law is fully complied with. VIH, Application Process Eligibility Any present or potential owner of taxable property in the Taxing Jurisdictions may request tax abatement by filing a written request with the City Manager or County Judge, with a copy of the t i �lrcation forwarded by the applicant to the Executive Director of the Paris IDC. m _. ,._ - Form The application shall consist of a completed application form accompanied by the following: I . A general description of the improvements to be undertaken together with the proj ected new value to the property and the type of business operation proposed. 2. A detailed, descriptive list of the improvements for which abatement is requested. 3. A list of the kind, number, and location of all proposed improvements of the property. 4. A list of the number and type of jobs created, including information pertaining to anticipated job transfers (if any). 5. A metes and bounds description and plat of the proposed reinvestment zone that shows all roadways within 200 feet of the reinvestment zone and all existing zoning and land uses within 200 feet ofthe reinvestment zone. b. A time schedule for undertaking and completing the proposed improvements. 7. The type and value of any additional economic development incentives requested. 8. Any other information about the proposed project as may be required by the Taxing Jurisdictions or as deemed desirable by the TaxingJurisdictions. Review 1. All applications will be initially reviewed by the PEDC executive director. Process 2. An initial project briefing meeting will be conducted between the company's representatives, the PEDC executive director, the city manager, and the county judge. 3. The PEDC executive director will evaluate the request for tax abatement in accordance with these criteria and guidelines and will make his/her recommendation to the Paris City Council and Lamar County Commissioners Court for their review and possible approval. 4. After the Paris City Council has been briefed on the proposed tax abatement offer and they have directed the PEDC executive director to move forward, the Paris City Attorney will draft the initial tax abatement agreement for review by the PEDC Board and representatives of each Taxing Jurisdiction. 5. Electronic versions of the City's abatement agreement will be provided to the County so all agreements have consistent language, terms and conditions. 6. Following review of the draft agreement, it will be sent to the applicant's legal counsel for review and comment. Any changes requested by the tax abatement applicant will be reviewed by the City Attorney. 7. Once the Agreement is finalized, it will be placed on the PEDC Agenda for board recommendation. 8. Once the Tax Abatement Agreement has been acted on by the PEDC Board, the Agreement shall be forwarded to the Paris City Council and Lamar County Commissioner's Court for , final consideration and action. Public Hearing 1. The Taxing Jurisdictions will comply with certain public notices and hearings required as mandated bstate law under the Proiierty Redevelopment and Tax Abatement Act prior to� 6 (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FORTAXABATEMENT the designation of a reinvestment zonand execution o) a tax abatement agreement j 2. The lead Taxing Jurisdiction (typicallythe Ci ofParis may adopt an ordinance designating a tax abatement reinvestment zone only after notice of a public hearing has been published at least seven (7) days before the date of the hearing, and all other procedural requirements of 1 Texas Tax Code have been satisfied. Findings In Chapter 312 of these proposed agreement comply with these Policies agreement, the Taxing Jurisdictions must find that: p p g p y ,Criteria and Guidelines. 2. There will be no substantial adverse effect on the provision of Taxing Jurisdictions' services or tax base. 3. That the planned use of the property will not constitute a hazard to public safety, health or morals. 4. Incident to approval of any ordinance designating a reinvestment zone, the Taxing Jurisdictions shall find that the improvements sought are feasible and practical and would be a benefit to the land to be included in the reinvestment zone and to the Taxing Jurisdictions after the thea Variances Requests for variance from the agreement_-- Variances of these iratton of Policies, Criteria and Guidelines may be made in writing to the Taxing Jurisdictions; provided, however, that in no event shall the term of any abatement exceed the period authorized by applicable state law. Such request shall include a complete description of the circumstances requiring a variance. Approval of a request for variance shall require the affirmative vote of three-fourths (3/4) of the members of each of the Taxjjg ud Proposed The adoption ofthese Policies,Cnterra and Guidelines . �g�ei �t limit Agreements the discretion of the Taxing Jurisdictions' governing ning bodies todecdecide to en into a Decided on specific tax abatement agreement Nor does it limit their discretion to delegate to their employees Individual the authority to determine whether or not the Taxing Jurisdiction should consider a particular Basis application or request for tax abatement, or create any property, contract, or other legal right in any person or entity to have the Taxing Jurisdiction consider or grant a specified application or request for tax abatement. VIII. Abatement Agreement Terms and Conditions. Appendix B provides many of the terms and conditions to be included in any formal tax abatement legal agreement. IX. Amendments to Policies, Criteria and Guidelines These Policies, Criteria and Guidelines are effective for a two (2) year period from the date of their adoption, unless amended earlier by the affirmative vote of three-fourths (3/4) of the members of each governing body (City, County). For a tax abatement application or additional information contact: Paris Economic Development Corporation 1125 Bonham Street Paris, Texas 75460 Phone: 903-784-6964 Fax: 903-784-2503 Website: _ paristexasusa.com Email: t rise crii:paristex susa com (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT APPENDIX A Dermion ..:.mm_�..-.-. Abatement or Tax or artial exemption from d valorem�taxes of certain real and tangible personal f p p m a Abatement pTheJ in a Reinvestment Zone designated for economic develo pment 1 wu K poses,_, ent or Agreement Tae he written legal agreement far tax abatement between a property owner and/or lessee and the �: Paris, mar County and Pans Junior College.,- uthorized _ _ A facility may be eligible for abatement if it is a facility used for manufacturing, research, Commercial or regional distribution, regional services, regional tourist entertainment, other basic industry, or Industrial. Facility w any primary jobs creating industry (see definitions below). All authorized facility definitions include buildings and structures, including fixed machinery and equipment used in operating the Authorized The City. Council of the City of Paris may also designate areas of the City where residenti Residential Facility properties may be considered for abatement of City taxes only. The City of Paris will approve theirresidential abatement policies, criteria and guidelines so crate from these rolicies. _ -_ _ Manufacturing T _ . he purpose of which is or will be the manufacture of tangible goads or materials or the Facility processing of such goods or materials by physical or chemical change. Facilities primarily engaged in assembling component parts of manufactured products are also f considered manufactu!jRg facihhes. i Regional Used primarily to receive, store, service, or distribute goods or materials where a majority of Distribution Fa ciliy the goods or services are distributed to points at least 100 miles from its location in the Taxing �public Regional Tourist Jurisdictions of Paris and T amCounty, Used in providing amm ntertainment through the admission of the general � _— where Entertainment the majority of users reside at least 100 miles from the Taxing Jurisdictions and where the Facility majority of users are likely to stay in the Taxing Jurisdictions for more than one day and will therefore likely utilize local restaurants and hotel/motel accommodations. __. _, Research Faciliy __ — ....- ._ Used primarily for research or experimentation to improve or develop new tangible goods or _ _ materials processes thereto. P m... 0 production w—.—— tither Basic or Not elsewhere described, fon he productioneof oducts or sere � pr ices which result in the Service Industry creation of new j bring the Taxing Jurisdictions (e.g. healthcare - related industries). IPrimaary Jobs Any industry creating "primary jobs" defined as a job that is available at a company for which Creating Industry a majority of the products or services of that company are ultimately exported to regional, statewide, .� econom>. �of Base Year Value � .� prop_ �$new g The assessed value eh�ahro property as of Januar 1, preceding the date of execution of the agreement plus the agreed upon value of eligible property improvements made after January 1, but before the execution of the agreement. The Base Year Value may be adjusted either up or down from leer to pear as per renrhhons icy the Iamar Counter A s raisal District. ployer The owner or lessee of property, who is applying for tax abatement and who will provide jobs and cal)ital investment within the Reinvestment Zone or within the Enterprise •se Zone— Reinvestment Zone An area where the Taxing Jurisdictions have decided to influence development patterns and attract major investments that will contribute to the development of the area through the use of tax abatement for specified improvements. These statues are found in Chapter 312 of the Texas Tax Code. Enter1�nse ZoneAn area of land designated as such under Chap ter 2303 of the Texas Government Code lob or Jobs A "job" is when an individual works 40 hours per week for an employer, and in the position the individual is provided the benefits normally offered by the employer, such as health insurance, vacation and some form of retirement benefit. A jab is not a position filled for the employer as a worker or employee of an employment agency or employment service. "Jobs" also me Etxivalent defined below h - ebb Full-time Equivalent g g provide a company the maximum flexibility in running "-the intheir fande-no busuiessJdecis e {FTE) Jobs business making ions, especially related to staffing. The following definition of FTE willbe reflected in all incentive agreements. An FTE is: 1. An individual working 40 hours per week in a job defined above. 2 A number of Dart -time ' oa bs where the hours worked in each such job is less than 40 hoursler 8 (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT ..... ........ W.... _ . ......- _ - made available by one employer and added together to total 40 hours per week. For example, fourteen (14) part-time jobs made available by one employer where all such part- time jobs added together require a total of 380 hours of work per week (but no such part- time job requires 40 hours of work or more per week), will equal nine and one-half (9.5) FTE jobs (380 hours divided by 40 hours per week equals 9.5). 3 FTE jobs do not re ire the employ p to receive benefits from the eruj)1oyer m... The lacement d upgrading f existing facilities, which increases the Modernization 1 output; updates the tecbnology, or sbstantially lowers the unit cost of operation. Modernizatione may result from the construction, alteration or installation of buildings, structures, fixed machinery or equipment, but shall not be for the purpose of reconditioning, refurbishing, Frei )aHILIg, or deferred maintenance. _ -•__-- __ Personal Pro Machinery, i mertt, tools, shelving or materials eligible under applicable law w for tax I abatemenJ Perry �' ..•..._., which can be Pp Pro -_. _Real Property or Personal Property ed facrht�r .._._ ._.__.� _ defined herein that is eligible for tax abatement. Real Property The land within an Enterprise Zone o a Reinvestm p rty ent Zone, together with all improvements and cted or otherwise situated thereon constructed _� _— -. , . _ _, Tax Abatement I The Tax fixtures Advisory Committee will be convened from time to time by the Paris Advisory Committee Economic Development Corporation to study, review and recommend tax abatements to the applicable Taxing Jurisdictions in the City of Paris and Lamar County, Texas. The Tax Abatement Advisory Committee will be composed of one person from each of the Taxing Jurisdictions: the City of Paris (the City Manager or designee), the County of Lamar (the County Judge or designee), Paris Junior College (the President or designee), the Chief Appraiser of the Lamar County Appraisal District, and the Executive Director of the Paris Economic Development Corporation. Recommendations from the Tax Abatement Advisory Committee shall be decided by majority vote of the representatives from the three taxing I' entities referenced above. ] (Updated 01-10-2022) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT APPENDIX B Abatement Agreement Terms and Conditions After approval, the Taxing Jurisdictions shall formally pass an order or resolution and authorize the execution of an agreement with the owner and/or lessee of the authorized facility, which shall include, but not be limited to the following terms and conditions: Contract Terms & Conditi ' 'ons Project The following project specifies willbe included: Description 1. The base year value. 2. Percent of increased value to be abated each year. 3. The commencement date and the termination date of abatement. 4. Amount of investment and average number of jobs involved during the term of the agreement. 5. The proposed use of the authorized facility, nature of construction, time schedule, plat, property description, and improvement list, as provided in the application. 6. A listing of the land, number, location, and costs of all proposed improvements of the property. 7. A statement limiting the uses of the property consistent with the general purpose of encouraging development or redevelopment of the reinvestment zone during the period that I property tax abatement is in effect. 8. That access to the project is provided to allow for the inspection by Taxing Jurisdictions' inspectors and officials in order to ensure that the improvements or repairs are made according to the specifications and conditions of the agreement. 4. That property tax revenue lost as a result of the tax abatement agreement will be recaptured by the Taxing Jurisdictions if the owner of the property fails to make the improvements or repairs as provided by the agreement. 10. Each term agreed to by the owner of the property. 11. A requirement that the owner of the property shall certify annually to the Taxing Jurisdictions that the owner is in compliance with each applicable term of the agreement. 12. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, administration and assignment, or other provisions that may be required by stats law, or in the discretion of the Taxing Jurisdictions' governing body. 13. That the Taxing Jurisdictions may cancel or modify the agreement if the property owner fails to compl. with themagreement. _ _..� . _m ... Default if the Taxing Jurisdictions determine that the person or entity receiving an abatement is in default according to the terms and conditions of its agreement, the Taxing Jurisdictions shall notify the company or individual in writing at the address stated in the agreement, and if such default is not cured within a reasonable time specified in such notice ("cure period"), then the agreement may be modified or terminated without further notice. In the event the company or individual allows its ad valorem taxes owed to the Taxing Jurisdictions to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest, or violates any of the terms and conditions of the agreement and fails to cure during the cure period, the agreement j then may be modified or terminated without further notice, and the agreement may provide a formula for recapture of all orpart of the taxes abated. At any time before the expiration, any tax abatement agreement may be terminated by mutual consent of all parties involved in the same manner that^ the aftreement was executed. ded a Taxing on in n with an application est fProprietary ryfor tax abatement undormation that is er thee Policies, Criteria and Guidelines d that describes the specific P �y Information processes or business activities to be conducted or the equipment or other property to be located on the property for which tax abatement is sought is confidential and not subject to public disclosure until the agreement is executed. Such information in the custody of the Taxing Jurisdictions after the aRree ment is executed is not confidential hereunder. actions I_ The agreement shall stipulate that em oyees and/ or desi$nated representatives of the Taxing 10 Modifications of Agreement kaigmuent Admiruit_rat=3 Contract review„ Monitoring and Reporting (Updated 01-10-2022) poi,jcy' s"rA'rEMENT CRITERIA AND GUIDELINES FOR TAXABATEMENT . . . .......................... Jun'sdictions will have access to the reinvestment zone during the term of the Weement to inspect the authorized facility to determine if the terms and conditions of the agreement are being .met. /W inspections will be awade only after the giving of at least twent3p.four (24) hours' prior notice and will only be conducted in such an manner as to not unreasonably interfere with the constrtiction and/or operation of the authorized facility, All inspections will be made, with one ormore Teprezerttatives of thr company or individual and in woorchmce vd."th its safbty MMIZU va standards. 'Upon oorapletion of constmetion, the Taxing Twisdictions shall : y eluate each authorized -facility receiving abatement to ensure, compliance with the, agreement and report j -aossible violations of the �&r an 'axing In dictions goveming bodies. ec . . .... At any -time before the expimuon of an agreement made under these Policies, Criteria and Guidelines, the agreement may be modifiedby the pardess to the agmme to include other pro -visions that could have been included in the original agrement or to delete provisions that were contained in the original agreentent. 'Me inodificafion must be rnade by th- e same procedure by which the or.iginal agreement was approved and exccuteA. The original agreement, however, may not be modified to extend the to of the agreement or the term of abatement. ted therein bey me perxrdqp�b , tat�. law __oad the fi An agreement. may be awmigned to a new ovnw or lessee of the authorized fficility only vdth the prior written consent of the Taxing,Jurisdictions. Any assigranent shall provide thatt the assignee shall hTevocably and unconditionaRy ass all the dudes a -ad obligations of" the assignar upon the sme to and conditions as set out W. the, agreernent, and the Taxing Jurisffictions' approval shall be subject to the determinafion of the financial capabdity of such assignee. Any assignment of an agreement sba ll. be to an entity that contemplates -the same improvements or repairs to the propeaty, except W the extent sunh improvements or repairs have been comply te&:loco assigntnent shall be approved if the assignor or the assignee is ind6bted to the Taxing Jurisdictions for and valorem taxes cw other obligations, or if any event of default under the agreement remains uncure& . . ...... . . . . ......... Each Taxing Jurisrhodon shall be respansiblefbr th- e administration, review, and monitoring of tax, abatement agreements autherized by, ffiem Taxing Jurisdictions iiinder these, Policies, Criteria and, Guidelines., These responsibilities shalliIude annually verifying participants in tax abatement agreemetrLs are in full compliance with the to of the agreement, including completion and submission of all required documents in a timely mianne.r. I The .pans C4 Aftomey shall exP rditiouJun dy advise the Taxing sdictions in writing of any instances of contract non., -compliance by tax abatement participants. Lu addition, the Pmis (,'ity Atte rneyshall, on an annual basis, conduct a perfannance rev tew of the activities, ofeach M abatement participant and report the findings of such review to the leadership and governing 'bodies of each taxing entity., 3 ° 'rho Taxing Jurisdictions' governing bodies s1rall retain the right to indepoudently renliew and aadit the activities gni" tax. abatement, participants, aind shdIbe respomible for enforcement of the tenns ofa4y tax abatement agreement autharm.ed hcreunder. 4" Annually the Buis City Attomey shall report to each of the gone bodies on its u2nitqriq, asd compliance activities and the status of all existing abatement. agreev�q ... .................... 11 CERTIFICATE OF COMPLETION STATE OF TEXAS § COUNTY OF LAMAR § CITY OF PARIS § The City of Paris, Texas has executed and delivered a Tax Abatement Agreement (the "Agreement") dated June 27, 2022, with LIONSHEAD PARIS, LLC, for certain improvements and other equipment (the "Improvements") to be installed on property plant located in Paris, Lamar County, Texas, said Improvements described in ExhibitA attached hereto, which property is located within an Enterprise Zone established by the United States Census in 2010. Based on information provided by Company and verified by the City, the City of Paris herein verifies that the Improvements agreed to be built, installed and used in the calendar year 2023 have in fact been completed as provided for in the Agreement and that the Company has complied with all other terms of the Agreement including those related to employment levels. NOW, THEREFORE, the City of Paris authorizes that the property described in Exhibit A attached hereto shall receive a tax abatement during each year through the end of the term the Tax Abatement Agreement equal to 100% in years 2024 and 2025; 75% in years 2026 and 2027; 50% in years 2028 and 2029; and 25% in the year 2030, of the taxes assessed upon the increased value of the real and personal property of the Company located in Paris, Texas, over the value at which the property was last appraised on January 1, 2022, which is the year in which the Tax Abatement Agreement was executed, as recited in the Agreement. The tax abatement will extend for a duration of seven (7) years, with the tax abatement beginning January 1, 2024, and ending December 31, 2030. APPROVED this day of 0 . m...m_ .......,................ Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney EXHIBIT 5 Annual Certificate of Compliance/Non-Compliance Year 1--2024 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC THE STATE OF TEXAS § COUNTY OF LAMAR § INITIAL WHERE APPROPRIATE: OR: Dated June 27, 2022 Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2024, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2024. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. EXHIBIT 6 VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared �.. _ the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is m...m...... I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of _......................—, 20_. Notary Public, State of Texas Annual Certificate of Compliance/Non-Compliance Year 2--2025 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC Dated June 27, 2022 THE STATE OF TEXAS § COUNTY OF LAMAR INITIAL WHERE APPROPRIATE: I Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2025, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2025. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared ....................„ the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of ._„ 20_. Notary Public, State of Texas Annual Certificate of Compliance/Non-Compliance Year 3--2026 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC Dated June 27, 2022 THE STATE OF TEXAS § COUNTY OF LAMAR § INITIAL WHERE APPROPRIATE: OR: Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2026, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2026. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is w w ... I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the day of . „ 20_. Notary Public, State of Texas Annual Certificate of Compliance/Non-Compliance Year 4--2027 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC THE STATE OF TEXAS § COUNTY OF LAMAR § INITIAL WHERE APPROPRIATE: OR: Dated June 27, 2022 Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2027, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2027. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of ........mmmmm................. _ 20_. Notary Public, State of Texas Annual Certificate of Compliance/Non-Compliance Year 5--2028 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC Dated June 27, 2022 THE STATE OF TEXAS § COUNTY OF LAMAR § INITIAL WHERE APPROPRIATE: OR: Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2028, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2028. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. VERIELAJTQN STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared .._.. m, the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is �., .............. ....__.....—. I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of _.., 20_. Notary Public, State of Texas Annual Certificate of Compliance/Non-Compliance Year 6--2029 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC Dated June 27, 2022 THE STATE OF TEXAS § COUNTY OF LAMAR § INITIAL WHERE APPROPRIATE: OR: Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2029, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2029. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of .... .. 20_. Notary Public, State of Texas Annual Certificate of Compliance/Non-Compliance Year 7--2030 Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And Lionshead Paris, LLC Dated June 27, 2022 THE STATE OF TEXAS § COUNTY OF LAMAR § INITIAL WHERE APPROPRIATE: Lionshead Paris, LLC (the "Company") hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In 2030, the Company maintained no fewer than fifteen (15) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is (3) The Company has continuously operated the Property and Improvements described in the Agreement as a tire and wheel assembly and warehousing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of 2030. (6) All other terms and conditions of this Agreement have been complied with. Lionshead Paris, LLC certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary,. VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is ........ .. I am capable of making this verification. I have read the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of w,..w 20_. Notary Public, State of Texas