27 - Economic Development Residentail Tax Abatement Agreement - Michael Davidson -Distinguished Property & Investments - 5 in 5 Housing Infill Development ProgramItem No. 27
Memorandum
TO: Mayor, Mayor Pro Tem and City Council
Grayson Path, City Manager
FROM: Andrew Mack, AICP Director Planning & Community Development
SUBJECT: Discuss and act on a Resolution approving an Economic Development
Residential Tax Abatement Agreement with Michael Davidson, Distinguished
Property & Investments, LLC, pursuant to the City's 5 in 5 Housing Infill
Development Program.
DATE: July 25, 2022
BACKGROUND & DISCUSSION
Attached please find the draft agreement between the City and Mr. Michael Davidson for the
construction of 3 new duplexes at the NWC of Fitzhugh and Clement Road. This property was
rezoned in the past 2 months and a plat was then approved the next month by the City. The last
step prior to issuance of building permits is approval of a 5 In 5 Agreement by the City, and
possibly the County. The property is located immediately diagonal to the established 5 In 5
Boundary Area. The previous Council Agenda item clarifies this as appropriate action to the
established boundary based upon the original intention of the 5 In 5 Guidelines. This was
promoted prior to and following inception of the policy by staff in discussion with numerous
builders. All 3 units will be built this year. Assay Construction is the General Contractor for
the project and the investor is Michael Davidson of Distinguished Property Investments, LLC
(DPI). The agreement spells out all the requirements under the 5 In 5 Infill Development
Program Guidelines. Mr. Assay plans to attend the meeting on Monday night and present their
building plans under the agreement to the City Council.
Recommendation
Approval of the 5 In 5 Infill Development Agreement with Distinguished Property Investments,
LLC for 3 duplexes is recommended.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS APPROVING AN ECONOMIC DEVELOPMENT AND
RESIDENTIAL TAX ABATEMENT AGREEMENT BETWEEN THE CITY
OF PARIS, TEXAS, ("CITY") AND DISTINGUISHED PROPERTY &
INVESTMENTS, LLC, ("OWNER"); MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, on February 10, 2020, the City Council of the City of Paris, Texas
passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating
certain areas inside the city limits to be eligible for the Residential Tax Abatement
Program; and
WHEREAS, after a public hearing on January 10, 2022, the City Council passed
Resolution No. 2022-003 stating its intent to establish the 5 In 5 Housing Infill
Development Program (hereinafter "the Program") including a low cost land sale and
residential tax abatements and adopting guidelines and criteria for the Program; and
WHEREAS, Resolution 2022-003, City Council designated an area within
Reinvestment Zone 2020-1 as being eligible for the Program; and
WHEREAS, on April 12, 2021, the City Council approved resolution 2021-012
re -authorizing the City to become eligible to participate in residential tax abatements
and approving guidelines and criteria for the residential tax abatement program; and
WHEREAS, the Program has additional criteria and guidelines for
participation in said Program, including criteria and guidelines for eligibility for
residential tax abatements; and
WHEREAS, the Program Guidelines require that for a property to be eligible
to participate in the Program, the property must be within a defined Program Area,
with an exception for property transferred via a tax foreclosure process; and
WHEREAS, on July 25, 2022, by Resolution No. 2022-_, the City Council
amended the guidelines and criteria of the Program to make properties immediately
adjacent to the Program Area eligible to participate in the Program; and
WHEREAS, Owner has submitted an application for a 5 In 5 Housing In -Fill
Development project to construct three (3) new duplexes with six (6) total dwelling
units on property owned by it located at 891 Clement Road in Paris, Texas
(hereinafter "Improvements"); and
WHEREAS, city staff has reviewed the application and the location of the
above described residential duplex improvements (hereinafter "Improvements") and
has determined that the property at 891 Clement Road (the "Property") is located
immediately adjacent to the Program Area and meets the requirements for
Improvements set forth in the Guidelines and Criteria for the 5 In 5 Housing Infill
Development Program as set forth in City Resolution No. 2022-003, as amended by
Resolution No. 2022 -
NOW, THEREFORE, in consideration of the terms and conditions referenced
herein, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the City, and Owner, (collectively referred to as
"Parties") hereby mutually agree as follows:
Section 1. The findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the terms of the Economic Development Agreement and
Residential Tax Abatement Agreement and the property the subject thereof meet the
5 in 5 Housing Infill Development Program adopted by the City of Paris by Resolution
No. 2022-003 as amended by Resolution No. 2022 -
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as Exhibit A and incorporated herein by reference, having been reviewed by
the City Council of the City of Paris and found to be acceptable and in the best interests
of the City of Paris and its citizens, be, and the same are hereby, in all things approved.
Section 4. That the Mayor is hereby authorized to execute the Agreement and
all other documents in connection therewith on behalf of the City of Paris
substantially according to the terms and conditions set forth in the Agreement
attached hereto as Exhibit A.
Section 5. That the planned use of the property the subject of the tax
abatement will not constitute a hazard to public safety, health, or morals.
PASSED AND APPROVED this 25th day of July, 2022.
Paula Portugal, Mayor
ATTEST:
Skylar Unger, Deputy City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
AFTER RECORDING RETURN TO:
Distinguished Property & Investments,
LLC ._ ......m
....� ..5 414L. µ...
192751-2022 WD
04114/2022 02:36 PM Total Pages: 4
Ruth Sisson, County Clerk - Lamar County, TX
BY:STONE TITLE COMPANY, INC
iNOTICE OF CONFIDENTIALITY RIGHTS: IF
YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE ANY OR ALL OF THE FOLLOW NG
INFORMATION FROM ANY INSTRUMENT THAT
TRANSFERS ANY INTEREST IN REAL PROPERTY
BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR
YOUR DRIvER'S LICENSE NUMBER.
GENE RAL WARRANTY DEED
CASII
22-13526
STATE OF TEXAS §
§ KNOW ALL MEN BY TMSE PRESENTS:
COUNTY OF 1AMAR §
That R XUM PROPERTIES, LLC, a Texas Waited liability company, ("Grantor") for
and in consideration of the sum of TEN AND NO1I00 DOLLARS ($10.00) and other valuable
consideration to the undersigned paid by the Grantee herein named, the receipt of which is
hereby acknowledged, have GRANTED, SOLD AND CONVEYED, and by these presents do
GRANT, SELL AND CONVEY unto DISTINGUISHED PROPERTY & INVESTMENTS,
LLC, a Texas limited liability company, with an address of
("Grantee") all of the following
described real property in Lamar County, Texas, to -wit:
All those certain tracts, lots or parcels of land situated in Lamar County, Texas, a part of
the REDDIN RUSSELL SURVEY and being more particularly described in the attached
Exhibit "A", incorporated herein by reference.
TO HAVE AND TO HOLD the above-described premises, together with all and singular
the rights and appurtenances thereto in anywise belonging, unto the said Grantee, Grantee's,
heirs, executors, adarinistr'ators, successors and assigns forever; and Grantor does horeby bind
Grantor, Grantor's heirs, executors, administrators, successors and assigns to WARRANT AND
FOREVER DEFEND all and singular the said premises unto the said Grantee, Grantee's heirs,
executors, administrators, successors and assigns, against every person Whomsoever lawfully
claiming or to claim the same or any part thereof.
1
ry „,iµ3,-
TN1125 Page 2 of 4
192751-2022 Page 2 of 4
This conveyance is made and accepted subject to any and all easements, restrictions and
reservations ofrecord affecting the title to the above-described property and filed in the office of
the County Clerk of Lamar County, Texas, including, but not limited to the following:
a. Any visible and apparent easements or roadways over or across subject property,
the existence of which may not be of record.
b. Utility easement from James and Johnna McNeal to the City of Paris dated
November 19, 2001, of record in Volume 1182, Page 338, Lamar County Ileal
Property Records.
c. Easement from Leslie Howie to the Texas Power & Light Co., dated Mai b 23,
1944, recorded in Book 274, Page 106, Lamar County Deed Records.
d, Basement from Leslie Howie to City of Paris dated May 19, 1979, recorded in
Boole 513, Page 108, Lamar County Deed Records.
e. Easement from H. A. Clement to Lone Star Gas Co., dated August 22, 1929,
recorded in Book 225, page 299, Lamar County Deed Records.
f Power lines, transmission lines, gas Iines, water lines and drainage and utility
easements as shown on survey taken on the ground by I M. Nelson RPLS dated
April 2,1990.
g. Easement from J. L. Jenkins to Texas Polder & Light Co., dated December 19,
1949, recorded in Book 315, Page 364, Lamar County Deed Records.
h. Drainage and utility easement to the City of Paris, dated May 19, 1979, recorded
in Book 513, Page 98 and 102.
EXECUTED this _^day of April, 2022.
EXUM PROPERTMI S, LLC, a Texas
Limited Liability Company
1. Y CHAD
Sole Mauaging Member
TN1125
192751-2022
THE STATE OF TEXAS
COUNTY or, LAMAR
Page 3 of 4
Page 3 of 4
This instrument was aelmowledged before mo on this L*—day of April, 2022, by
TONY CHAD EXUK in his capacity as sole managing member of =M PROPS,RTIP+ S,
LLC, a Texas limited liability company.
(SEAL)
A {
futbIlEdState of Texas
*,..�s.. Amanda Posey IT
NotntyPu411c,stateol"r"as
y, ,� �! CUmm.l2tp�NovcDlber IOS'ifT�
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TN 1125 Page 4 of 4
192751-2022 Page 4 of 4
LrXMIT aA"
A part of the REDDIN RUSSELL HEADRIGHT SURVEY within the corporate limits of the
City of Paris, and of a 10-aoir. tract of land described in Deed from Mrs. Emma. Jones et Al to
Leslie ITowle, DATED July 8,1943, ofreoord in Book 269, Page 503, Lamar County Deed
Records, described by metes and bounds as follows:
BEGINNING at the intersection of the NB lime of Clement Road with the VSB line of
StiIlhouse Road, at the SB comer of property conveyed by Leslie Howie et ux to J. L. Jenkins on
January 20, 1944, by Beed of record in Book 275, Page 275, Lamar County Deed Records;
THENCE WEST with the NB line of Clement Road 104.5 feet, a stake at the SW corner
of the HowielJenkilns tract;
THENCE NORTH with its WB line 218 feet, a stake;
THENCE EAST 104.5 feet, a stake in the WB line of Stillhouse Road;
THENCE SOUTH 218 feet to the PLACE OF BEGINNING, and being the same
property described in Deed from Bobby Wand to L U. Swindle and wife, Kathy Swindle, dated
February 5, 1993, of record in Book 338, Page 24, Lamar County Real Property Records,
reference being made in all the above mentioned instruments and records for all necessary
purposes,
CITY OF PAWS, j1C
APPLICATION FOR RESIDENTIAL TAX A.BATP
Mk
Property owner: NT
Name Current: Name Planned,
�c'
Mailing Address;
Telephone Number:
Builder or Contact if diffej;�jt __email •h Cc'
Name. man et"Tent/plaxined owner)4 -L,111,,��'--
Mailing Address:
Telephone Number: 470
Sale and Tax Abatela
Low Cost Land Si
Property Pareeks) V., J
(Please submit an attached list of addresses and/or LCAD O's ent:
Street Addresses: 011 Excel SPreadsheet, if vOssijj,,)
LCAD Vs
Summary -Legal —n
--puon Lot: -a�)- Block. - ��
RM
I'Ull L08181 Description, Include as an attachment a fall legal description
and a cOPY of the deed, if available, with metes and bounds
Improvements:
Type improvements for new Construction: SF— 2F MF—No. ofDweUingUjjits:
Estimated Value of Improvements by type. "—!' Me
Please attach a lending institution pre -loan approval letter. Attached: yes No
Estimated Start Date of Construction -
Estimated Date of Completion of Project(s) I.— I. -
Description of Project (attach site plan, floor plan,
Applicant(s) Signature:
Date -
Date:
Page 7 of 7
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RESOLUTION NO. 2022-003
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
ESTABLISHING THE 5 IN 5 HOUSING IN -FILL DEVELOPMENT
PROGRAM; AUTHORIZING THE CITY TO BECOME ELIGIBLE TO
PARTICIPATE IN RESIDENTIAL HOUSING TAX ABATEMENTS AND
APPROVING GUIDELINES, CRITERIA AND AN APPLICATION FORM FOR
THE PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their
intent to participate in tax abatement agreements and to adopt guidelines and criteria for granting
such tax abatements; and
WHEREAS, on October 14, 2013 in Ordinance No. 2013-036, the City Council designated
Reinvestment Zone No. 2013-1 for residential tax abatements; and
WHEREAS, concurrent with Ordinance No. 2013-036, the City Council also approved
Resolution No. 2013-036 electing to be eligible to participate in a residential tax abatement
program and approving Guidelines and Criteria for Residential Tax Abatement Program as
required by statute; and
WHEREAS, on February 9, 2015, the City Council passed Ordinance No. 2015-002
amending Reinvestment Zone 2013-1 for Residential Tax Abatements to expand it to include all
Council Districts in the City and designated the new reinvestment zone as Reinvestment Zone No.
2015-1; and
WHEREAS, on January 9, 2017, the City Council approved Resolution 2017-001 re-
authorizing the City to become eligible to participate in residential tax abatements and approving
guidelines and criterial for the residential tax abatement program; and
WHEREAS, on April 22, 2019, the City Council approved Resolution 2019-013 re-
authorizing the City to become eligible to participate in residential tax abatements and approving
guidelines and criteria) for the residential tax abatement program; and
WHEREAS, in 2020, City Council re -authorized Reinvestment zone 2015-01 and renamed
it Reinvestment Zone No. 2020-1; and
WHEREAS, on April 12, 2021, the City Council approved Resolution 2021-012 re-
authorizing the City to become eligible to participate in residential tax abatements and approving
guidelines and criterial for the residential tax abatement program; and
WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criteria for tax
abatements are effective for two years from the date adopted; and
WHEREAS, the City Council desire to continue to participate in a residential tax abatement
program in the City of Paris and has now been presented with a new program to be known as the
"5 In 5 Housing In -Fill Development Program" (the "Program') with specific guidelines and
criteria for residential tax abatements entered into pursuant to Program; and
WHEREAS, the City Council has identified a specific geographic area within the City of
Paris and within Reinvestment Zone 2020-1 in which lie properties eligibile for the Program; and
WHEREAS, the City Council wishes to offer other incentives in the Program through
Chapter 380 of the Texas Government Code; and
WHEREAS, said the City Council finds that Program and the incentives offered therein will
contribute to economic development within the Program area and the Reinvestment Zone through
the provision of much needed housing for workforce for industries and other employers within
the City; and
WHEREAS, on January 10, 2022, the City Council conducted a public hearing regarding
the Program guidelines and criteria for residential tax abatements, and having taken into account
any testimony from said public hearing, wishes to adopt the Program and the guidelines and
criteria for residential tax abatements set forth therein;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. The City hereby adopts the "5 In 5 Housing In -Fill Development Program," a copy
of which is and attached hereto and incorporated herein as Exhibit "A," elects to be eligible to
participate in a residential tax abatement program under said Program, and adopts the Guidelines
and Criteria for residential tax abatements contained in said Exhibit "A."
Section 3. The City Council hereby designates the defined geographic area for properties to
be eligible to participate and enter into an agreement for the "5 In 5 Affordable Housing In -Fill
Program", a map of which is attached hereto and incorporated herein as Exhibit "B".
Section 4. In order to qualify for the Program, an applicant shall agree to construct at least
five (5) new residential dwelling units on one (1) or more parcels within the boundaries set out
in Exhibit "B", which area lies within Reinvestment Zone 2020-1, within five (5) years of entering
into an Economic Development Agreement and Tax Abatement Agreement with the City.
Section 5. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 10th day of January, 2022.
Paula Portugal, o
��•��'CHti CITY''•,,, �� � ...F..
ATTEST: vOF•• •' • ��,o''� � . Ma Y
Ellis, City Clerk
APPROVED AS TO FORM:
Step is , ie H. Harris, City Attorney
5 IN 5 HOUSING IN -FELL DEVELOPMENT PROGRAM
GUIDELINES, CRITERIA AND APPLICATION FORM
CITY OF PARIS, TEXAS
January 10, 2022
I. GENERAL PURPOSE AND_OBJECTIVES
The City of Paris, working with our local government partners, is seeking to provide a series of
builder incentives designed to encourage new home construction for the purpose of neighborhood
revitalization and the provision of work force housing. New home construction within the existing
interior of the community can have a positive effect towards reinvestment in our neighborhoods
by providing stability and enhanced character, as well as a means to expand our community's local
labor force. Focusing on the existing interior of the City allows the builder to utilize existing
infrastructure rather than the extension of costly streets and utilities in undeveloped lands at or
beyond the urban fringe.
To achieve this purpose, the City will offer a series of incentives:
1. Where applicable, the City will provide low cost residential lots in the Program Area in tax
foreclosure city receivership. If a builder obtains properties through other traditional means
within the Program Area, other incentives within this policy may apply.
2. The City will offer a five (5) year 100% residential tax abatement of City property taxes.
3. The City will offer reduced rates on building plan review and permit fees.
4. The City will offer reduced rates on labor charges on water and sewer tap fees.
The city staff will work with interested builders to identify parcels from a pool of tax sale lots in
trustee status to develop a list of properties that will be suitable for the construction of new
dwelling units. This may consist of single-family, two-family, medium density, or high density
residences. Prior to any construction occurring from which the builder is seeking incentives, the
builder will enter into an Agreement to be approved by the City Council for the construction of a
minimum of five (5) or more dwelling units on one (1) or more parcels. Each of the dwelling units
subject to the Agreement must be constructed under the terms of the agreement within five (5)
years from the date of the Agreement, unless such deadline is extended by subsequent approval of
the City Council. All parcels under the Agreement must be built upon within five (5) years to
satisfy the terms of the Agreement. Failure to achieve this goal will result in certain claw backs as
provided in the Agreement. All applications shall be considered on a first come, first serve basis.
There will be no income guidelines under this program for occupants of the dwelling units, whether
owner or renter occupied. In the event the applicant constructs a new dwelling unit and sells said
unit, the tax abatement shall lapse and be terminated as to that parcel unless the City Council
approves an assignment of the tax abatement agreement to the new owner.
Page 1 of 7
In order to further encourage local development, employment and enhancement of our economy,
to be eligible for incentives in this policy, building materials and fixtures used in the construction
of new dwelling units, where possible, must be purchased locally within the City of Paris.
II. DEFINITION OF TERMS
Act - The Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et.
seq., as amended from time to time.
Agreement - A contractual agreement between an applicant and the City of Paris for the purposes
of a 5 In 5 Housing In -Fill Development Program to include an economic development agreement
pursuant to Chapter 380 of the Texas Local Government Code and a residential tax abatement
agreement pursuant to the Act.
Applicant - An owner, proposed owner, builder or authorized agent of the owner of eligible
property seeking an agreement under this policy.
Base Year Value — The assessed value of eligible property on January 1, preceding the date of
execution.
Eligible Property - Property located in the defined Program Area, whether foreclosed on due to
taxes or not. Also, property located outside the Program Area if foreclosed on due to taxes.
New Structure - Residential improvements made to a property previously undeveloped or a vacant
parcel which is placed into use by means other than by expansion or modernization without full
demolition of an existing substandard or condemned structure.
Program Area - An area depicted in "Exhibit B" of the approved resolution for the 5 In 5 Housing
In -Fill Development Program, which area is wholly within the boundaries of Reinvestment Zone
2020-1 for the purpose of residential tax abatements.
Residential Improvements - The construction of new residential structures and all the
appurtenances thereto. This term includes single family, duplexes and multi -family structures.
Value of Lnprovements —The appraised value of the Residential Improvements as determined
by the Lamar County Appraisal District and as described in the Agreement.
III. ELIGIBILITY AND GUIDELINES
Real property is determined eligible under this policy as provided in the Definitions. If property
is eligible, an Applicant may apply for an Agreement to receive incentives provided for in this
policy. For tax foreclosed properties, all taxing jurisdictions shall be required to sign off on the
low cost land sale according to the provisions of State Law prior to transfer of the property to the
applicant.
Page 2 of 7
Minimum Investment — To be eligible for residential tax abatement, an Applicant must construct
a new structure or structures on the property parcel(s) identified in an Agreement between the
applicant and the City.
Incentives
Low Cost Sale of Foreclosed Proerkies — As part of their agreement, an applicant may choose to
purchase eligible properties that are in a state of tax foreclosure. These properties are strictly first
come, first serve and the City makes no warranty on having available properties for this incentive.
The City will work with the Lamar County, Paris Independent School District, and Paris Junior
College to seek a low cost sale of the foreclosed property, but the City can only guarantee a low
cost of its share.
Tax Abatement - An Applicant who has satisfied all the criteria and guidelines for the low cost
property sale and residential tax abatement as set out herein, will be eligible for a 100% five (5)
year tax abatement on each parcel on which a dwelling unit or units are constructed and completed.
The abatement will become effective on January 1' of the year following issuance of a Certificate
of Completion following final construction inspection. As provided in the Act, a tax abatement
may only be granted for the value of the Residential Improvements which exceed the base year
value of the property and which are listed in an Agreement between the City of Paris and the
applicant, subject to such limitations as the City of Paris may require. The base value will be set
as of January 1 a of the year in which the Agreement is executed. Upon completion of construction,
the Applicant shall provide a copy of all material and fixture purchase invoices to prove that those
materials and fixtures were purchased locally within the City of Paris when possible. The tax
abatement is available only for improvements made after the execution of the Agreement.
The Agreement may not be approved by the City Council until at least thirty (30) days after
notice of the consideration and possible action on the Agreement has been posted.
Reduced Fees for Building Plan Review and Permitting —The Applicant will be entitled to reduced
rates for building plan review and permit fees on a cumulative basis for all new dwelling units
under agreement with the City according to the following schedule:
Total Dwelling Units Plan Review Fee Discount Building Permit Fee Discount
5-9 100% 50%
10-19 100% 75%
20+ 100% 100%
Reduced Fees for Water and Sewer Tai Labor, — The Applicant will be entitled to reduced rates
for water and sewer tap labor fees, where required by the Public Works Department, on a
cumulative basis for all new dwelling units under agreement with the City according to the
following schedule:
Total Dwelling Units Water Tap Labor Fees Discount Sewer Tap Labor Fees
Discount
5-9 50% 50%
10-19 75% 75%
20+ 100% 100%
Claw Back Provision — The Applicant who enters into an Agreement with the City of Paris shall
construct at least five (5) or more new housing dwelling units on one (1) or more parcels within
five (5) years from the effective date of the Agreement, or the City shall have the right to
automatically take back any undeveloped parcel under the terms of the agreement and transfer of
the property by all taxing entities. This shall be recorded with or as a part of the deed as a right of
reversion for all uncompleted construction lots deeded under this agreement against the property.
The Applicant may request approval of an extension for such failure to construct a new residential
dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council
under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to
another individual except by prior approval and re -assignment of the parcel(s) and approval of a
new agreement by the City Council. Failure to meet the requirements of construction the minimum
of five (5) dwellings within the five (5) year period will result in a reversion of the all parcels
upon which Residential Improvements have not been constructed and completed to the City and
will result in the Applicant's being ineligible to participate in this program in the future.
As a further claw back provision, and in accordance with Texas Tax Code Sec. 312.205, the
Agreement shall provide for recapturing property tax revenue lost as a result of the agreement if
the owner of the property fails to make all the Residential Improvements as provided in the
Agreement regardless of how many dwelling units applicant builds.
Compliance with all other City Re ulrements — The Applicant shall be fully responsible for
compliance with all zoning, subdivision platting, and building code requirements as may
specifically pertain to the subject parcel(s) under the approved Agreement. The applicant shall be
fully responsible for all such costs which may include, but not be limited to: Zoning Changes,
Special Use Permits, Variances, Platting and Surveying Costs, Plan Preparation, and Building
Permit Fees.
IV. APPLICATION PROCEDURES
Applications for an Agreement with the City shall be reviewed for completeness. City Staff shall
determine whether the application satisfies guidelines and criteria and Staff may request additional
information or documents from Applicant. City Staff will make final recommendations on each
application to the City Council. Any Applicant desiring approval of an Agreement shall comply
with the following procedural guidelines. All applications shall be evaluated on their own merits
within the parameters of these Guidelines and Criteria.
Preliminary Application Steps
A. Applicant shall work with City Staff to identify eligible tax foreclosure City Trustee
Page 4 of 7
or other parcels within the defined geographic area. City Staff will provide a list
and corresponding map from which tax foreclosure City receivership parcels may
be reviewed. The Applicant may submit an application for this program
concurrently with an application for a building permit(s). If the Applicant for the
building permit is not the owner of the real estate and does not make application
for an agreement on behalf of the owner of the real estate and does not make
application for an Agreement on behalf of the owner, the City Staff shall notify the
owner (according to the most current records of the Lamar County Appraisal
District) by certified mail, return receipt requested, that the application must be
signed and filed with the City within ten (10) business days of receipt of the
affidavit of ownership notice.
B. A pre -approval letter must be attached to the application from Applicant's
financial institution stating that the Applicant will have financial capital available
to compete all new dwelling unit construction under the five (5) year Agreement
with the City. Verification of such financial capability may be reviewed over the
course of the Agreement.
C. If the building permit applicant does not apply for an Agreement prior the time the
building permit is issued, or if the owner fails to respond to the written notice
availability of the Agreement, this policy shall be considered waived by the
applicant and/or owner. City Staff shall make a record to reflect owner's election
not to participate in the Program or to document that owner did not respond to
City's notice of opportunity to participate in the program. The refusal or waiver to
participate in the program by the building permit applicant or owner shall be
binding on subsequent owners of the real property.
D. A complete legal description shall be provided with a copy of the current deed of
the land, unless the parcel(s) are being transferred by tax resale deed by the City
of Paris.
E. Applicant shall complete all forms and information detailed above and submit all
forms to the City of Paris Director of Planning and Community Development.
2. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as needed. If
necessary, Applicant will meet with City Staff to discuss details of the application and to
prepare presentation of the application to the City Council.
3. The application shall designate whether the dwellings(s) to be constructed are to be retained
for ownership, or sold to another owner upon completion of construction. Applicant shall
also provide an estimate of the value of improvements as required for building permit
application.
4. If an application for the 5 In 5 Housing In -Fill Development Agreement is to be
recommended for approval by staff, then an Agreement as defined herein with the City of
Paris as prepared by the City Attorney for approval by the City Council.
Page 5 of 7
5. If the Applicant's property is not found to be eligible, the application will be rejected and
returned to Applicant.
6. The City Council reserves the right to amend these policies and guidelines as needed.
V. LEGAL DOCUMENTATION PREPARATION
The Director of Planning and Community Development and the City Attorney will be responsible
for drafting the required Agreement in accordance with state law and this Policy.
The legal document will include the following:
1. Estimated value of new structure or residential improvements to be constructed.
2. Total amount of value to be abated over five (5) years.
3. Effective date and the termination date of abatement.
4. Description of the Residential Improvements, schedule of completion, property
description, all required City approval requirements and a platted lot site plan or sketch of
the parcel(s) to be platted and developed.
5. Applicant agrees to make the new structure or residential improvements available for
inspection by City of Paris, or its authorized representatives, and Lamar County Appraisal
District (LCAD) during construction and upon completion of the project.
6. Contractual obligations in the event of default, violation of terms or conditions, delinquent
taxes, recapture and administration.
7. A signed and notarized statement as an attachment to the application agreeing to construct
five (5) dwelling units on one (1) or more parcels within five (5) years from the date of
City Council approval of an Agreement, unless extended by the City Council, or consenting
to allow the City to automatically take back the parcel(s) under the initial terms of an
approved agreement.
Page 6 of 7
CITY OF PARIS, TEXAS
APPLICATION FOR RESIDENTIAL TAX ABATEMENT
Property Owner:
Name Current:
Mailing Address:
Name Planned:
Telephone Number: w �w.....................mm..................._....._.�..,,m,,,. ,,....aemail:...
Builder or Contact (if different than current/planned owner):
Name:
Mailing Address: State GC License No:
Telephone Number:
Property Parcel(s) For Low Cost Land Sale and Tax Abatement:
(Please submit an attached list of addresses and/or LCAD #'s on Excel Spreadsheet, if possible)
Street Addresses:
LCAD #'s
Summary Legal Description Lot: -- Block: Additiol
Full Legal Description: Include as an attachment a fall legal description with metes and bounds
and a copy of the deed, if available.
Improvements:
Type improvements for new Construction: SF_ 2F MF No. of Dwelling Units:
Estimated Value of Improvements by type:
Please attach a lending institution pre -loan approval letter. Attached: Yes No
Estimated Start Date of Construction:
Estimated Date of Completion of Project(s)
Description of Project (attach site plan, floor plan, etc.:
Applicant(s) Signature:
Page 7 of 7
Date:
Date:
THE STATE OF TEXAS )
COUNTY OF LAMAR )
ECONOMIC DEVELOPMENT AND RESIDENTIAL TAX ABATEMENT
AGREEMENT
This Economic Development and Residential Tax Abatement Agreement (hereinafter the
"Agreement") is entered into by and between the CITY OF PARIS, TEXAS, a home rule
municipality situated in Lamar County, Texas, acting by and through its authorized officer
whose signature appears below (hereinafter called "CITY"), and DISTINGUISHED
PROPERTY & INVESTMENTS, LLC (hereinafter referred to as "Owner").
WITNESSETH:
WHEREAS, on February 10, 2020, the City Council of the City of Paris, Texas passed
Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside
the city limits to be eligible for the Residential Tax Abatement Program; and
WHEREAS, after a public hearing on January 10, 2022, the City Council passed
Resolution No. 2022-003 stating its intent to establish the 5 In 5 Housing In -Fill Development
Program (hereinafter "the Program") including a low cost land sale and residential tax
abatements and adopting guidelines and criteria for the Program; and
WHEREAS, Resolution 2022-003, City Council designated an area within Reinvestment
Zone 2020-1 as being eligible for the Program; and
WHEREAS, on April 12, 2021, the City Council approved resolution 2021-012 re-
authorizing the City to become eligible to participate in residential tax abatements and approving
guidelines and criteria for the residential tax abatement program; and
WHEREAS, the Program has additional criteria and guidelines for participation in said
Program, including criteria and guidelines for eligibility for residential tax abatements; and
WHEREAS, the Program Guidelines require that for a property to be eligible to
participate in the Program, the property must be within a defined Program Area, with an
exception for property transferred via a tax foreclosure process; and
WHEREAS, on July 25, 2022, by Resolution No. 2022-_--, the City Council amended
the guidelines and criteria of the Program to make properties immediately adjacent to the
Program Area eligible to participate in the Program; and
WHEREAS, Owner has submitted an application for a 5 In 5 Housing In -Fill
Development project to construct three (3) new duplexes with six (6) total dwelling units on
property owned by it located at 891 Clement Road in Paris, Texas (hereinafter "Improvements");
and
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WHEREAS, city staff has reviewed the application and the location of the above
described residential duplex improvements (hereinafter "Improvements") and has determined
that the property at 891 Clement Road (the "Property") is located immediately adjacent to the
Program Area and meets the requirements for Improvements set forth in the Guidelines and
Criteria for the 5 In 5 Housing In -Fill Development Program as set forth in City Resolution No.
2022-003, as amended by Resolution No. 2022 -
NOW, THEREFORE, in consideration of the terms and conditions referenced herein,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City, and Owner, (collectively referred to as "Parties") hereby mutually agree
as follows:
Component Parts
This Agreement comprises two component parts, including an economic development
agreement pursuant to Texas Government Code Chapter 380 and a residential tax abatement
agreement pursuant to Texas Tax Code Section 312.
Terms Applicable to both the Economic Development Agreement and the Residential Tax
Abatement Agreement:
I.
The Properties—Areas to be Improved
1.1 The Improvements defined in paragraph III below and made the subject of this
Agreement shall be located on the Property located in Paris, Lamar County, Texas more fully
described in Exhibit 1 attached hereto and incorporated herein by reference, which Property is
within Reinvestment Zone No. 2020-1 and immediately adjacent to the Program Area set forth in
the Program: 891 Clement Road, Paris, Texas 75460, City of Paris Block 250, Lot 32, LCAD
Parcel # 53721.
II.
Consideration --Improvements
2.1 The Improvements to be completed consist of constructing three (3) new duplexes
comprising six (6) residential dwelling units upon the above described parcel and as more fully
described in the application for the Program attached hereto and incorporated herein as Exhibit 2
and incorporated herein by reference. Said Improvements must be completed within the term of
the Economic Development Agreement, set herein to expire on July 24, 2027.
2.2 The total estimated value of the Improvements to be constructed on the above -
referenced parcels is SIX HUNDRED THOUSAND AND NO/100 DOLLARS ($600,000.00).
2.3 Owner shall obtain City approval for all necessary platting (if required) and plans,
building permits, green tags and a Certificate of Completion from the City of Paris.
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2.4 Owner shall allow city inspectors' access to the Property and Improvements
throughout construction and completion of Improvements.
2.5 Owner agrees and covenants that it will diligently and faithfully construct the
Improvements referenced herein in a good and workmanlike manner within 12 months of
obtaining building permits from City for each structure. Owner further covenants and agrees that
construction of the Improvements will be in accordance with all applicable state and local laws,
codes and regulations or Owner will procure a valid waiver or variance thereof.
2.6 Owner shall contact City Building Official for final inspection once
Improvements are completed and obtain a Certificate of Completion for the new residential
dwellings as completed.
2.7 Owner shall notify the Lamar County Appraisal District upon completion of
Improvements and request an updated appraisal of the Improvements.
2.8 Owner shall provide City with appraised value of Improvements upon receipt of
same from Lamar County Appraisal District.
2.9 Owner may not use the parcels described in Section 1.1 for any other purpose
other than to construct the Improvements set forth in this Article. Use of any parcel for any other
purpose shall constitute a separate act of default of the Agreement and will trigger the default
provisions and remedies set forth hereunder.
M.
Terms Specific to the Economic Development Agreement—
Texas Local Government Code Chapter 380
A. Term
3.1 The term of this Economic Development Agreement shall commence on June 27,
2022 and shall continue for a period of five (5) years ending on July 24, 2027.
B. Reduced Fees for Building Plan Review and Permitting
3.2 In consideration for Owner's construction and completion of the above -referenced
Improvements, City agrees to reduce rates for building plan review by one hundred percent
(100%) and permit fees by fifty percent (50%) for each dwelling unit constructed pursuant to this
Agreement.
C. Reduced Fees for Water and Sewer Tap Labor
3.3 In further consideration for Owner's construction and completion of the above -
referenced Improvements, City agrees to reduce rates for water and sewer tap labor fees by fifty
percent (50%) where required by the City's Public Works Department.
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D. Local Purchasing
3.4 As further consideration for the incentives granted herein, where possible, Owner
shall purchase building materials and fixtures from vendors located within the City of Paris.
E. Default
3.5 It shall be an act of default of the Economic Development Agreement should
Owner fail to construct and compete all of the Improvements specified herein within the five (5)
year term set forth herein.
IV.
Terms Specific to the Residential Tax Abatement Agreement—
Texas Tax Code Chapter 312
A. Term
4.1 The term of this Tax Abatement Agreement shall commence on July 25, 2022. It is
the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on
each dwelling unit constructed as it is completed and issued a Certificate of Completion by City.
Consequently, each dwelling unit constructed and completed shall have its own five (5) year
abatement period. The abatement period for each constructed and completed dwelling unit shall
commence on January 1 of the year following City's issuance of a Certificate of Completion on
said dwelling unit and end on the fifth (5') anniversary of the commencement of the abatement
period. This Tax Abatement Agreement shall terminate upon the expiration of the final
abatement period granted herein unless otherwise terminated by default or agreement of the
Parties.
B. Abatement
4.2 Subject to the terms and conditions of this Economic Development Agreement and
Tax Abatement Agreement, and in further consideration for the construction and completion of
the Improvements required herein and subject to the rights and holders of any outstanding bonds
of the City, a portion of the ad valorem property taxes assessed upon each Improvement and
otherwise owed to the City shall be abated for a period of five (5) years in an amount equal to
100% per year of the taxes assessed upon the increased value of the Improvements made by
Owner to the Property described in Section 1.1 of this Agreement, over the value in the year by
which this agreement is executed (the "Base Value"), in accordance with the terms of this
Agreement and all applicable state and local regulations or valid waivers thereof; provided that
the Owner shall have the right to protest or contest any assessment of the 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. 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.
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4.3 This abatement is granted in accordance with the City's Guidelines and Criteria
for the Program, a copy of which is attached hereto as Exhibit 3 as amended by Resolution No.
2022-_ provided, however, in the event of any conflict between this Agreement and the
Guidelines and Criteria for the Program attached hereto as Exhibit 3, this Agreement shall
control.
4.4 Upon receipt of the documentation set forth in Article II and in Section 5.6 herein
as to each constructed and completed duplex, City will notify the Lamar County Appraisal
District to begin the tax abatement as to said unit.
C. Default
4.5 If (a) the Improvements (all three units) for which an abatement has been granted
are not completed in accordance with this Agreement (within five (5) years of the effective date
hereof); or (b) Owner allows its taxes owed the City to become delinquent and fails to timely and
properly follow the legal procedures for protest or contest of any such; or (c) Owner materially
breaches any of the other terms, provisions or conditions of this Economic Development
Agreement and Tax Abatement Agreement, then owner shall be considered in default of this
Agreement. In the event Owner defaults in its performance of either (a), (b), or (c) above, then
City shall give Owner written notice of such default and if Owner has not cured such default
within sixty (60) days of said written notice, this Tax Abatement Agreement may be terminated
by the City. Notice of default shall be given in accordance with Article V of this Agreement.
4.6 As damages in the event of default, and in accordance with the requirements of
Section 312.205(a)(4) of the Tax Code of the State of Texas, all taxes which otherwise would
have been paid to the City without the benefit of abatement, including taxes on those dwelling
units constructed and completed according to the terms of this Agreement, together with interest
to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the
Property Tax Code of the State of Texas, with all penalties permitted by the Property
Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be
recaptured and will become a debt to the City and shall be due, owing, and paid to the City
within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole
remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to
which Owner may be entitled.
V.
Additional Terms applicable to both the Economic Development Agreement and
the Tax Abatement Agreement
A. No Conflict of Interest.
5.1 The Owner represents and warrants that neither the Property nor the Improvements
include any real or personal property that is owned or leased by a member of the Paris City
Council or the Planning and Zoning Commission or any member thereof having responsibility
for approval of this Agreement.
B. Conditions.
5.2 The terms and conditions of this Agreement are binding upon the parties hereto
and their successors and assigns.
5.3 It is understood and agreed between the parties that the Owner, in performing
its obligations hereunder, is acting independently, and the City assumes no responsibility or
liability in connection therewith to third parties; and Owner agrees to release, indemnify
and hold the City its elected officials, officers, employees and attorneys harmless from
any claims, lawsuits, damages, costs or attorney's fees related to this Agreement. It is
further understood and agreed among the parties that the City, in performing its obligations
hereunder, is acting independently, and the Owner assumes no responsibility or liability in
connection therewith to third parties and, to the extent permissible by law, the City agrees to
indemnify and hold harmless the Owner therefrom.
C. Compliance Provisions
5.4 The Owner agrees that the City, its agents and employees, shall have reasonable
right of access to any and all records concerning Owner's investment in the Improvements for
the purpose of conducting an audit of the Residential Improvements. Any such audit shall be
made only after giving the Owner notice at least fourteen (14) days in advance and will be
conducted in such a manner as to not unreasonably interfere with Owner's property. Upon
request, the Owner will provide the City with a detailed list of all Improvements, including a
list of materials used and cost thereof.
5.5 The Owner further agrees that the City, its agents and employees, shall have
reasonable right of access to the Property to inspect the Improvements in order to insure that
the construction of the Improvements are in accordance with this Agreement and all applicable
state and local laws and regulations or valid waiver thereof. After completion of the
Improvements, the City shall have the right to enter the Property and conduct an inspection of
the completed Improvements.
D. Initial and Annual Reporting.
5.6 The Owner further agrees that it will, within thirty (30) days of completion of
each dwelling unit as it issued a Certificate of Completion by the City, provide the CITY with
a sworn report, written on Owner's letterhead and signed by a designated representative of
Owner, which contains the following information:
(a) A copy of the printout from the Lamar County Appraisal District showing
the market value of the Property prior to the construction of the Improvements;
(b) Detailed description of the Improvements;
(c) A copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by City's Building
Official;
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(d) The actual cost of the specific capital Improvements; and,
(e) The date of substantial completion of the specific Improvements as defined
in paragraph 2.1 hereof, and
(f) Receipts showing that the purchase of building materials and fixtures from
for the construction were made from vendors within the City of Paris, when
possible.
5.7 Owner further agrees that it will provide City with an annual, sworn report
which shall certify, in writing, that it is in compliance with each applicable term of this
Agreement. Such annual report shall be furnished on the forms provided by the City.
E. Authority to Contract.
5.8. This Agreement was authorized by resolution of the City Council at its regularly
scheduled meeting on the 25th day of July 2022, which resolution further authorized the City
Manager to execute the Agreement on behalf of the City.
5.9 This Agreement was entered into by Owner pursuant to the authority granted to
the authorized official whose signature appears below.
5.10. This Agreement shall constitute a valid and binding Agreement between the
City and Owner when executed in accordance herewith, regardless of whether any other taxing
unit executes a similar agreement for tax abatement.
F. Legal.
5.11 No officer, official or agent of the City has the power to amend, modify or alter
this Agreement or waive any of its conditions or to bind the City by making any promise or
representation not contained herein.
5.12 This Agreement, except by operation of law, shall not be assigned or transferred
by Builder, without the prior written consent of City, which consent shall be at the sole
discretion of the City.
5.13 Any written notice required or permitted under the terms of this Agreement shall
be given and be deemed to have been duly served if either (1) delivered in person, or (2)
deposited certified mail, return receipt requested, postage prepaid in the United States mail,
addressed to the designated representative of the respective parties which are designated as
follows:
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OWNER:
Distinguished Property & Investments, LLC
Attn: Michael Davidson
3675 Darnell Dr.
Paris, Texas 75462
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a co to
City Clerk, City of Paris, Texas
(Address same as above)
5.14 If any term or provision of this Agreement shall be declared unconstitutional or
void by any court of competent jurisdiction, the constitutionality and validity of the remainder
of said Agreement shall not be affected thereby, and to this end the terms and provisions of
this Agreement are declared to be severable.
5.15 This Agreement sets forth the entire understanding between the parties, and any
other understandings or agreements shall be canceled and superseded by this Agreement upon
the date of execution hereof. None of the terms of this Agreement shall be waived,
discharged, altered or modified in any respect, except by an Agreement in writing signed by
both parties and specifically referring to this Agreement. The captions in this Agreement are
included for convenience only and shall not be taken into consideration in any construction or
interpretation of this Agreement or any of its provisions. This Agreement is performable in
Lamar County, Texas, and shall be governed by, construed and enforced in accordance with
the laws of the State of Texas. The provisions of this Agreement shall apply to, bind and inure
to the benefit of the City, Owner, and their respective successors, and permitted assigns, if any.
5.16 Venue for any actions arising under this Agreement shall lie exclusively in the
courts of Lamar County, Texas, for any State Court action, and in the U.S. District Court for
the Eastern District of Texas for any federal court action.
Signature age to follow.
WITNESS our hands this day of , 2022.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
THE CITY OF PARIS, TEXAS
Grayson Path, City Manager
DISTINGUISHED PROPERTY &
INVESTMENTS, LLC
Lo
Michael Davidson,
BEFORE ME, the undersigned authority, on this day personally appeared Grayson Path, City
Manager of the City of Paris, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of July, 2022.
Notary Public, State of Texas
BEFORE ME, the undersigned authority, on this day personally appeared Michael Davidson,
_____ _ of Distinguished Property & Investments, LLC known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same for the purposes and consideration therein expressed and in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this _ day of July, 2022.
Notary Public, State of Texas
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1=Property Description (Deed
2 = Owner's 5 in 5 Program Application
3 = City's Guidelines and Criteria for 5 In 5 Housing In -Fill Affordable Development
Program
11