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15 - Residential Tax Abatement Agreement - 5 In 5 Housing Infill Program - 448-10th S.E.Item No. 15 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 a Residential Tax Abatement Agreement with Paris/Lamar County Habitat for Humanity for the property located at 743 E. Polk, Block 2, Lot 22, Gibbons Park Addition (LCAD #11781); 448 10`h St. N.E., City of Paris Block 69-13, Lot 3, (LCAD #14651); 813 5th St. S.E., City of Paris Block 161, Lot I (LCAD #16659); and 1274 15th St. S.E., Block 8, Lots 3 and 4, (Gibbons Park Addition (LCAD #11594) pursuant to the 5 In 5 Housing Infill Development Program. MTG. DATE: April 10, 2023 BACKGROUND At its meeting held on May 23, 2022, Council approved a tax abatement agreement with Habitat for Humanity for the property located at 743 E. Polk. The intent of Habitat at that time was for the approval of the first of 5 lots for construction of a new home in their 2022 build under the new 5 In 5 Program. That home was permitted last fall and is nearing completion. At that time the process for obtaining approval of the tax deeds for the other 3 lots, including 1 lot to be divided in two, were not ready to go. The City then this year produced the tax deeds for these properties and Council approved their ownership transfer to Habitat 4 Humanity in February 2023. We are now prepared to bring forward the full 5 In 5 Agreement for the remaining 4 dwelling units as required by the 5 In 5 Policy. Habitat will also pursue the same tax abatement approvals with Lamar County following city action. Upon completion of the house construction, the tax abatement can be re- assigned to the new owner. They will be brought back for Council approval prior to closing with the new home owners. Staff is pleased that we are now able to package up the full agreement which will carry their organization forward with their mission over the next several years. RECOMMENDATION Staff recommends approval of a Year 100% Residential Property Tax Abatement Agreement with Paris/Lamar County Habitat for Humanity, pursuant to the 5 In 5 Housing Infill Development Program. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT AGREEMENT AND TAX ABATEMENT AGREEMENT WITH PARIS/LAMAR COUNTY HABITAT FOR HUMANITY PURSUANT TO THE 5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on January 10, 2022, the City Council of the City of Paris, Texas passed Resolution No. 2022-003 stating its intent to establish a 5 In 5 Housing In -Fill Development Program (hereinafter "the Program") including low cost land sales 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, on or about May 23, 2022 by Resolution No. 2022-038, the City Council approved a Residential Tax Abatement Agreement with Paris/Lamar County Habitat for Humanity ("Owner") regarding property located at 743 E. Polk St., Paris, Texas; and WHEREAS, on or about February 13, 2023, Owner acquired three additional properties located at 44810th St. N.E., City Of Paris Block 69-13, Lot 3, (LCAD #14651); 813 5th St. S.E., City Of Paris Block 161, Lot 1 (LCAD #16659); and 1274 15th St. S.E., Block 8, Lots 3 and 4, Gibbons Park Addition (LCAD #11594) (the "Newly Acquired Properties") via Tax Deed upon which it intends to build four (4) single family dwellings; and WHEREAS, by combining the single family dwelling under construction on the original property at 743 E. Polk St. and the proposed additional four (4) single family dwellings on the Newly Acquired Properties, Owner has become eligible for the Program; and WHEREAS, Owner has submitted an application for a 5 In 5 Housing Infill Development Program project in accordance with the above; and WHEREAS, city staff has reviewed the application and the locations of the above described proposed residential improvements (hereinafter "Improvements") and has determined that the properties are located within the boundaries of the defined geographic area and meet the requirements for Improvements set forth in the Guidelines and Criteria for the Program as set forth in City Resolution No. 2022- 003; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the terms of the Economic Development Agreement and Tax Abatement Agreement and the property the subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by the City of Paris by Resolution No. 2022- 003 and will lead to the economic development of the Program Area described in said Resolution No. 2022-003. Section 3. That the terms and conditions of the proposed Agreement attached hereto as Exhibit A, having been reviewed by the City Council of the City of Paris and found to be acceptable and in the best interests of the City of Paris and its citizens, be, and the same are hereby, in all things approved. Section 4. That the City Manager is hereby authorized to execute the Agreement and all other documents in connection therewith on behalf of the City of Paris substantially according to the terms and conditions set forth in the Agreement attached hereto as 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. 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 10th day of April, 2023. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE STATE OF TEXAS COUNTY OF LAMAR ECONOMIC DEVELOPMENT AND RESIDENTIAL TAX ABATEMENT AGREEMENT This Economic Development and Residential Tax Abatement Agreement (hereinafter the "Agreement) is entered into by and between the CITY OF PARIS, TEXAS, a home rule municipality situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "City"), and PARIS/LAMAR COUNTY HABITAT FOR HUMANITY (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on January 10, 2022, the City Council of the City of Paris, Texas passed Resolution No. 2022-003 stating its intent to establish a 5 In 5 Housing In - Fill Development Program (hereinafter "the Program") including low cost land sales 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, on or about May 23, 2022 by Resolution No. 2022-038, the City Council approved a Residential Tax Abatement Agreement with Owner regarding property located at 743 E. Polk St., Paris, Texas; and WHEREAS, on or about February 13, 2023, Owner acquired three additional properties (the "Newly Acquired Properties") via Tax Deed upon which it intends to build four (4) single family dwellings; and WHEREAS, by combining the single family dwelling under construction on the original property at 743 E. Polk St. and the proposed additional four (4) single family dwellings on the Newly Acquired Properties, Owner has become eligible for the Program; and WHEREAS, Owner has submitted an application for a 5 In 5 Housing Infill Development Program project in accordance with the above; and WHEREAS, city staff has reviewed the application and the locations of the above described proposed residential improvements (hereinafter "Improvements") and has determined that the properties are located within the boundaries of the defined geographic area and meet the requirements for Improvements set forth in the Guidelines and Criteria for the Program as set forth in City Resolution No. 2022-003. NOW, THEREFORE, in consideration of the terms and conditions referenced herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City, and Owner, (collectively referred to as "Parties") hereby mutually agree as follows: I. Recitals 1.1 The Recitals set forth hereinabove are incorporated into this Agreement for all purposes. II. Component Parts 2.1 This Agreement comprises three component parts, including an economic development agreement pursuant to Texas Government Code Chapter 380 and two residential tax abatement agreements pursuant to Texas Tax Code Section 312 as follows: • An Economic Development Agreement covering all four Properties set forth below. • The existing Residential Tax Abatement Agreement dated May 23, 2022 (the "Prior Agreement") on the property located at 743 E. Polk St., a copy of which is attached hereto as Exhibit 2, and incorporated herein by reference. • A new Residential Tax Abatement as to the three newly acquired properties listed below. III. Terms Applicable to both the Economic Development Agreement and the Residential Tax Abatement Agreement: A. The Properties—Areas to be Improved 3.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the parcels located in Paris, Lamar County, Texas more fully described in Exhibit 1 and Exhibit 2 attached hereto and incorporated herein by reference, which parcels are located within Reinvestment Zone No. 2020-1 and within the area set forth in the Program: • Block 2, Lot 22, Gibbons Park Addition, 743 E. Polk, Paris, Texas, LCAD #11781 • City of Paris Block 69-13, Lot 3, 448 10' St. Northeast, Paris, Texas, LCAD #14651 2 • City of Paris Block 161, Lot 1, 813 5'b St. Southeast, Paris, Texas, LCAD #16659 • Block 8, Lots 3 and 4, Gibbons Park Addition, 1274 15"' St. Southeast, Paris Texas, LCAD #11594 The properties at 448 10'h St. Northeast St., 813 5'l' St. Southeast, and 1274 15'x' St. Southeast, shall hereinafter be referred to as the "Newly Acquired Properties." All four listed properties shall be referred to collectively as the "Properties." B. Consideration --Improvements 3.2 The Improvements to be completed consist of constructing five single family dwellings on the above described parcels and as more fully described in the application for the Program attached hereto and incorporated herein as Exhibit 1, incorporated herein by reference and in the Prior Agreement (Exhibit 2). Said Improvements must be completed within the term of the Economic Development Agreement, set herein to expire on April 9, 2028. 3.3 The total estimated value of the Improvements to be constructed on the above - referenced parcels is FOUR HUNDRED THOUSAND AND NO/100 ($400,000.00). 3.4 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. 3.5 Owner shall allow city inspectors access to the Properties and Improvements throughout construction and completion of Improvements. 3.6 Owner agrees and covenants that it will diligently and faithfully construct each Improvement/dwelling 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. Owner shall complete all Improvements required herein by April 9, 2028. 3.7 Owner shall contact City Building Official for final inspection as Improvements are completed and obtain a Certificate of Completion for the new residential dwellings as completed. 3.8 Owner shall notify the Lamar County Appraisal District upon completion of Improvements and request an updated appraisal of the Improvements. 3.9 Owner shall provide City with appraised value of Improvements upon receipt of same from Lamar County Appraisal District. 3.10 Owner may not use the parcels described in Section 1.1 and conveyed to Owner pursuant to the terms of this Agreement for any other purpose other than to construct the Improvements set forth in this Article. Use of any parcel for any other purpose shall constitute a separate act of default of the Agreement and will trigger the default provisions and remedies set forth hereunder. IV. Terms Specific to the Economic Development Agreement— Texas greementTexas Local Government Code Chapter 380 A. Term 4.1 The term of this Economic Development Agreement shall commence on April 10, 2023 and shall continue for a period of five (5) years ending on April 9, 2028. B. Reduced Fees for Building Plan Review and Permitting 4.2 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 4.3 In further consideration for Owner's construction and completion of the above - referenced Improvements, City agrees to reduce rates for water and sewer tap labor fees by fifty percent (50%) where required by the City's Public Works Department. D. Local Purchasing 4.4 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 4.5 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. V. Terms Specific to the Residential Tax Abatement Agreement as to the Newly Acquired Properties—Texas Tax Code Chapter 312 5.1 The provisions in this Article IV shall apply to the Newly Acquired Properties. The property located at 743 E. Polk St. shall continue to be the subject of the Prior Agreement and shall be governed by the terms of said Prior Agreement. A. Term 5.2 The term of this Tax Abatement Agreement shall commence on April 10, 2023. 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. 4 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 (5h) 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 5.3 Subject to the terms and conditions of this Economic Development Agreement and Tax Abatement Agreement, in further consideration for the construction and completion of the Improvements required herein and subject to the rights and holders of any outstanding bonds of the City, a portion of the ad valorem property taxes assessed upon each Improvement and otherwise owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per year of the taxes assessed upon the increased value of the Improvements made by Owner to the Properties described in Section 1.1 of this Agreement, over the value in the year by which this agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers thereof; provided that the Owner shall have the right to protest or contest any assessment of the Properties and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest or contest. For the purposes of this Agreement, the Base Value of the existing real property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2023. 5.4 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 2 provided, however, in the event of any conflict between this Agreement and the Guidelines and Criteria for the Program attached hereto as Exhibit 2, this Agreement shall control. 5.5 Upon receipt of the documentation set forth in Article II and in Section 5.6 herein as to each constructed and completed dwelling unit, City will notify the Lamar County Appraisal District to begin the tax abatement as to said unit. C. Default 5.6 If (a) the Improvements (all five 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, including but not limited to the Mandatory Anti - Discrimination Provisions set forth herein, 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. 5.7 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. VI. Additional Terms applicable to both the Economic Development Agreement and the Tax Abatement Agreement on the Newly Acquired Properties A. No Conflict of Interest. 6.1 The Owner represents and warrants that neither the Properties nor the Improvements include any real or personal property that is owned or leased by a member of the Paris City Council or the Planning and Zoning Commission or any member thereof having responsibility for approval of this Agreement. B. Conditions. 6.2 The terms and conditions of this Agreement are binding upon the parties hereto and their successors and assigns. 6.3 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. C. Compliance Provisions 6.4 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 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. 6 6.5 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. 6.6 The Owner further agrees that it will, within thirty (30) days of completion of each dwelling unit as it issued a Certificate of Completion by the City, provide the CITY with a sworn report, written on Owner's letterhead and signed by a designated representative of Owner, which contains the following information: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property prior to the construction of the Improvements; (b) Detailed description of the Improvements; (c) A copy of or identification of plans and specifications of constructed improvements and the location of the same for inspection by City's Building Official; (d) The actual cost of the specific capital Improvements; and, (e) The date of substantial completion of the specific Improvements as defined in paragraph 2.1 hereof; and (f) Receipts showing that the purchase of building materials and fixtures for the construction were made from vendors within the City of Paris, when possible. 6.7 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. 6.8. This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 10th day of January 2022, authorizing the City Manager to execute the Agreement on behalf of the City. 6.9 This Agreement was entered into by Owner pursuant to the authority granted to the authorized official whose signature appears below. 7 6.10. 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. 6.11 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. 6.12 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. 6.13 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, addressed to the designated representative of the respective parties which are designated as follows: OWNER: Paris/Lamar County Habitat for Humanity Attn: Judy Martin P.O. Box 1555 Paris, Texas 75461 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O. Box 9037 Paris, TX 75461-9037 With a cop to: City Clerk, City of Paris, Texas (Address same as above) 6.14 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. 6.15 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 8 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. 6.16 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. 6.17 MANDATORY ANTI -BOYCOTT AND OTHER PROVISIONS. Owner, by executing this agreement, certifies the following: i. Pursuant to Section 2271.002 of the Texas Government Code, Consultant certifies that either (i) it meets an exemption criterion under Section 2271.002; or (ii) it does not boycott Israel and will not boycott Israel during the term of the Agreement. Consultant acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. ii. Pursuant to SB 13, 87th Texas Legislature, Consultant certifies that either (i) it meets an exemption criterion under SB 13, 87th Texas Legislature; or (ii) it does not boycott energy companies, as defined in Section 1 of SB 13, 87th Texas Legislature, and will not boycott energy companies during the term of the Agreement. Consultant acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. iii. Pursuant to SB 19, 87th Texas Legislature, Consultant certifies that either (i) it meets an exemption criterion under SB 19, 87th Texas Legislature; or (ii) it does not discriminate against a firearm entity or firearm trade association, as defined in Section 1 of SB 19, 87th Texas Legislature, and will not discriminate against a firearm entity or firearm trade association during the term of the Agreement. Consultant acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. iv. Pursuant to Subchapter F, Chapter 2252, Texas Government Code, Consultant certifies Consultant (1) is not engaged in business with Iran, Sudan, or a foreign terrorist organization. Consultant acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. Signature page to follow: E WITNESS our hands this 10' day of April, 2023. ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE CITY OF PARIS, TEXAS 1-fi Paula Portugal, Mayor PARIS/LAMAR COUNTY HABITAT FOR HUMANITY Donna Burnett, President 10 STATE OF TEXAS } COUNTY OF LAMAR } BEFORE ME, the undersigned authority, on this day personally appeared Paula Portugal, Mayor, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, and in the capacity therein stated. Given under my hand and seal of office this day of April, 2023. Notary Public, State of Texas STATE OF TEXAS } COUNTY OF LAMAR } BEFORE ME, the undersigned authority, on this day personally appeared Donna Burnett, President of Paris Lamar County Habitat for Humanity, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, and in the capacity therein stated. Given under my hand and seal of office this day of April, 2023. Notary Public, State of Texas 11 Exhibit 1 CITY OF PARIS, TEXAS APPLICATION FOR RESIDENTIAL TAX ABATEMENT -5 In 5 Infill Housing Program Property Owner: Paria f1,aw v- cbKvti'VY Name Current: pPlanned*: (*Do you plan to re asst �to a buyer upon comAletion? Yes_No Mailing Address: b_ . Sox � x"755 0 Telephone Number: email: Builder or Contact (if different than current/planned owner): Name: Mailing Address: State GC License No: Telephone Number: e103 2,L3 05P? email Ar, ,s ii*teme I.eem, Property Parcel(s) Proposed For 5 In 5 Agreement: (Please submit an attached list of addresses and/or LCAD #'s on Excel Spreadsheet, if possible) No. LCAD Address Lot B& Addition 22 2. bF 3 4. f�7 5- T/ JCC g R ddqA Full Legal Description: Include as an attachment a full legal description with metes and bounds or a copy of the deed, if available. Improvements: Type improvements for new Construction: SF ✓' F 3F Quad MF— Total Number of Dwelling Units ";p m Estimated Value of Improvements by type: ,� �a n� _- �W rl f,'C e7cc tt p eo/ Estimated Start Date of Construction: . L Estimated Date of Completion of Project(s) Description of Project (attach site plan, floor plan, etc. afa vhCitidcr� , Owner's Signature: m/I1'pL • Date: -23 Applicantz i Applicant(s) Signature: �% ��� ��� � � �� � �W��� � mm,,,�� Date: � � _ Page 7 of 7 TAX DEED (Private Sale: 15 is 5' Infill Program) STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF LAMAR § THAT WHEREAS, the below described real property or properties (the "Property") was previously bid off and sold to the City of Paris, Trustee, as trustee for itself, Lamar County, Paris ISD and Paris Junior College (hereinafter the "Grantors") at public auction; and, WHEREAS PARIS/LAMAR COUNTY HABITAT FOR HUMANITY (hereinafter "Grantee") has offered to purchase the Property by private sale; and, WHEREAS all of the taxing units entitled to receive proceeds from the sale of the Property have consented to the private sale of the Property to the Grantee, in advance, as permitted by Section 34.051 of the Texas Property Tax Code; this advance consent is evidenced by that interlocal agreement approved by all Grantors on January 24, 2022, an original being maintained by the City of Paris (approved by: the City of Paris, City Council agenda of January 24, 2022, item #22; Paris Junior College, Regents' agenda of January 24, 2022, item #6; Lamar County, Commissioners Court agenda of January 24, 2022, item #2; and the Paris Independent School District, Trustees' agenda of January 24, 2022, item #4). THEREFORE, the Property is hereby sold and struck off, for the total sum of THREE AND NO/100 ($3.00) DOLLARS, to the Grantee: PARIS/LAMAR COUNTY HABITAT FOR HUMANITY PO Box 1555 Paris TX 75461 NOW, THEREFORE, in consideration of the premises aforesaid, and of the payment of the aforesaid sum, the receipt of which is hereby acknowledged, I, REGINALD B. HUGHES, as MAYOR PRO -TEM, acting on behalf of City of Paris, Lamar County, Paris ISD and Paris Junior College, have Granted, Sold, and Conveyed, and by these presents do Grant, Sell, and Convey unto the said grantee(s) all of the estate, right, title, and interest to said property being located in Lamar County, and described as follows: PROPERTY DESCRIPTION • Tract 1: "GIBBONS-BRADEN ADDITION, BLOCK 8, LOT 34", commonly known as 1274 SE 15TH, Paris, Lamar County, Texas [Lamar CAD 411594,$1.001 • Tract 2: "CITY OF PARIS, BLOCK 69-B, LOT 3", commonly known as 44810TH NE, Paris, Lamar County, Texas [Lamar CAD #14651, $1.001 • Tract 3: "CITY OF PARIS, BLOCK 161, LOT 1", commonly known as 813 SE 5TH, Paris, Lamar County, Texas [Lamar CAD #16659, $1.001 201850-2023 Pages: 3 DTS Tax Deed (`5 in 5' Infill Program), Page I of 3 02/15/2023 10:02:39 AM By: f dunean Lamar County, TX Ruth Sisson - County Clerk 1111111111111111111111111111111111111111111111111111 IN 1111111 I I 111111111111111 IN I TO HAVE AND TO HOLD the above described premises, together with all an, -4 singular the rights, privileges, and appurtenances thereto in any manner belonging unto the sait grantee(s), his heirs and assigns forever, the aforesaid premises or appurtenances, or any pax) thereof, as fully and absolute as 1, REGINALD B. HUGHES, as MAYOR PRO -TEM aforesaid, can convey; 01 31F.W[M I'M I I 1 11 t I I I WTWO-,T-Mailtion, ITIVID11111y lor any use, property description, property size or dimension, or location of the property. No survey of the property has been conducted by the taxing units prior to sale: some of prop" descriptions come from the tax maps of the City of Paris and the Lamar County Appraisal Districts rather than from recorded plat maps. It is the responsibility of the Grantee(s) to determine what rights, if any, have been conveyed by the Grantors to the Grantee(s) by this instrument. This conveyance is also made expressly subject to any existing right of redemption remaining to the former owner(s) of the property under the provisions of law and also subrect to aWj recorded restrictive wvenam-1s r record as of the date of this sale. Ownership of any single Property conveyed by this deed shall revert to the City of Paris, at its sole option without compensation to the Grantee, should any of the following events occur during the period in which the Grantee has an ownership interest in the Property and during the term of the '5 in 51 Program agreement between the City of Paris and Grantee or Grantee's successors (said agreement is hereby incorporated into this deed by reference as if written word-for-word herein): (1) failure to maintain the property as required by law, evidenced by any affidavit of violation being 277 fORM is pres n efi to Grantee if hand delivered to the Grantee, otherwise the second business day after the I otice is turned over to the United States Postal Service or other delivery service for I elivery to the Grantee). IN TESTIMONY W+hhHEREOF, and executed this G day of 20�. t e � 0, ®y .J. r a 1,B R LD B. HUGHES, r _ MA*,,, Oil �,�RO- TEM, CITY OF PARIS, TEXA'- STATE OF TEXAS LAMAR COUNTY BEFORE ME the undersigned authority, on this day personally appeared REGINALD B. HUGHES, as MAYOR PRO -TEM, 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, consideration, and in the capacity therein expressed. GIVEN UNDER MY HAND AND SEAL OF 20. After recording return to: ,E THIS THE DAY OF 1�' jc iP �1 r rr 0 VVV FN rlr i acre d d Sion 1; xp=, : � U xa �, 11 ''�� Nr ��N�� %� �, u m✓/6 e,. A PARIS/LAMAR COUNTY HABITAT FOR HUMANITY ri" PO Boz 1555 Paris TX 75461 Tax Dood ('5 in 5' InfiIl Program), Page 3 of 3 9 I .. r .... 7yp� M&64 O � S © 4.'Ask BEDROOM 2� BEDROOM 8 MAStER BEDROOM t._ ay .. Hvac OM! j a HALLWAY a 4 .01E mi"l a x.r r k�] _ 4 _ n BREAKFASST 'q � OO !; KtFCHEN ROOM _ 1 u MASTERSEDP BEfiviNG Room 2 ... PJ I r t x° _ r er KITCHEN TV rBATH T BATHROO 11 _ r . ._,........ .T PROHiPORCI muujm 6fROCWRA6 uNrc SUPPORT POST i b. 1n 40 Exhibit 2 ;. . 161 D1 D113 I DION] This Residential Tax Abatement Agreement (hereinafter the "Agreement) is entered into by and between the CITY OF PARIS, TEXAS, a home rule municipality, situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "CITY"), and PARIS/LAMAR COUNTY HABITAT FOR HUMANITY (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on April 12, 2021, the City Council of the City of Paris, Texas passed Resolution No. 2021-012 reauthorizing the city to become eligible to participate in residential tax abatements and approving guidelines and criteria for the program; and WHEREAS, Owner has submitted an application for a residential tax abatement related to its purchase of the property located at 743 E. Polk St., Paris, Texas 75460 (the "Property") for the purpose of constructing a new single-family dwelling (the "Improvements"); and WHEREAS, city staff has reviewed the application and the location of the above described improvements and has determined that the property is located within the boundaries of Reinvestment Zone 2020-1 and meets the requirements for Improvements set forth in guidelines and criteria as set forth in Resolution No. 2021-012; and WHEREAS, Owner has a demonstrated track record of constructing quality homes for lower income people in the city; and WHEREAS, the location of the home to be constructed is within the zone set forth in the city's 5 in 5 Housing Infill Development Program dedicated to incentivizing investments in housing in the city's core; and WHEREAS, as such, the City Council finds justification for an upward deviation from the guidelines set forth in Exhibit 2 herein; NOW, THEREFORE, in consideration of the terms and conditions referenced herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City, and Owner (collectively referred to as "Parties") hereby mutually agree as follows: F'. 1.1 The Effective Date of this Agreement is May 23, 2022. The five (5) year abatement period set forth herein shall commence on January l st of the year following City's issuance of a Certificate of Completion. This Agreement shall terminate upon the expiration of the abatement period and the completion of Owner's reporting requirements under Article IX unless otherwise terminated by default or agreement of the Parties. I.I. Improvements 2.1 The Improvements to be constructed consist of a single-family residential structure with approximately 1209 square feet of enclosed living space located at 743 East Polk St., Paris, Texas, Gibbons Park Addition Block 2, Lot 22 and East 24 ft. of Lot 23, LCAD #11781 and further described in the deed attached hereto and incorporated herein as Exhibit wwl The proposed cost of capital investment in the Property and Improvements is EIGHTY THOUSAND AND N01100 DOLLARS ($80,000.00) 2.2 Owner shall obtain City approval for all necessary plats, plans, building permits, inspections and green tags as are required by City Ordinance or state law. 2.3 Owner shall allow City access to the Property and Improvements throughout construction and completion of Improvements for inspection purposes. 2.4 Owner agrees and covenants that it will diligently and faithfully, construct the Improvements referenced herein in a good and workmanlike manner to completion within twelve (12) months of obtaining building permits from City. Owner further covenants and agrees that construction of the Improvements will be in accordance with all applicable state and local laws, codes and regulations or Owner will procure a valid waiver or variance thereof. 2.5 Owner shall contact City Building Official for final inspection once Improvements are completed. 2.6 Owner shall notify the Lamar County Appraisal District upon completion of Improvements and request an updated appraisal of the Improvements. 2.7 Owner shall provide City with appraised value of Improvements upon receipt of same from Lamar County Appraisal District. III. Tax Abatement 3.1 Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of the ad valorem property taxes assessed upon the Improvements and otherwise owed to the City shall be abated for a five-year period at 2 one hundred percent (100%) per year.* *Abatement is applied only to increased value of the residential improvements that exceeds the base year value as determined by the Lamar County Appraisal District. The base year value being the assessed value of any improvements that were on the property as of January 1, 2015, the year that this Agreement is signed. 3.2 Said abatement shall be an amount equal to the percentage referenced in the table above for the applicable year but subject, however, to Owner's rights to protest such value and cause it to be adjusted as is provided for under the applicable laws of the State of Texas. This tax abatement shall be implemented and enforced in accordance with all applicable state and local laws and regulations or valid waiver thereof; provided that the Owner shall have the right to protest or contest any assessment of the Property, and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest or contest. 3.3 This abatement is granted in accordance with the City's Guidelines and Criteria for Residential Tax Abatements a copy of which is attached hereto as Exhibit 2 provided, however, in the event of any conflict between this Agreement and the Guidelines and Criteria for Residential Tax Abatement this Agreement shall control. IV. Default 4.1 If (a) the Improvements for which an abatement is being granted are not completed and maintained in accordance the terms of this Agreement; or (b) the appraised value of the Improvements does not satisfy the City's Guidelines and Criteria for Residential Tax Abatement; or (c) Owner allows its property taxes owed the City or any other local taxing entity to become delinquent without a timely protest or appeal; or (d) Owner materially breaches any of the other terms, provisions or conditions of this Agreement, then Owner shall be considered in default of this Agreement. In the event the Owner defaults in its performance of either (a), (b), (c), or (d) above, then the City shall give the Owner written notice of such default and if the Owner has not cured such default within sixty (60) days of said written notice, this Agreement may be terminated by the City. Notice of default shall be given in accordance with Article XI of this Agreement. 4.2 As damages in the event of default in accordance with the requirements of Section 312.205(a)(4) of the Property Tax Code of the State of Texas, all taxes which otherwise would have been paid to the City without the benefit of abatement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Property Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owing, and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. V. No Conflict of Interest 5.1 The Owner represents and warrants that neither the Property nor the Improvements include any real or personal property that is owned or leased by a member of the Paris City Council or the Planning and Zoning Commission of the City of Paris, or any member thereof having responsibility for approval of this Agreement. VI. Assignment 6.1 The terms and conditions of this Agreement are binding upon the parties hereto and their successors and assigns. 6.2 This Agreement may not be assigned without the express written consent of the City Council of the City of Paris, Texas. VII. Indemnification 7.1 It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City assumes no responsibility or liability in connection therewith to third parties; and Owner agrees to release, indemnify and hold the City its elected officials, officers, employees and attorneys harmless from any claims, lawsuits, damages, costs or attorney's fees arising from or related to this Agreement. VIII. Retention of Records/Audit/Inspection 8.1 Owner shall maintain all fiscal records related to the construction of the Improvements, including, but not limited to: purchase orders; contracts, receipts, materials orders or other fiscal records and supporting documentation for expenditures associated with this Agreement or the Improvements referenced herein. Owner shall retain such records, and any supporting documentation for the greater of: (a) Five (5) years from the end of the Agreement period; or (b) The period required by other applicable laws and regulations. 8.2 Owner grants City, or any of its duly authorized agents or representatives access to and the right to examine Owner's books, accounts, ledgers, purchase orders, records, reports, files, photographs, video and digital tapes/files, electronic files or other documents related to this Agreement or the Improvements referenced herein. The City's access to Owner's books and records will be limited to information needed to verify that Owner is and 4 has been complying with the terms of this Agreement. 8.3 The Owner further agrees that the City, its agents and employees, shall have reasonable right of access to the Property to inspect the Improvements in order to insure that the construction of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, the City shall have the right to enter the Property and conduct an inspection of the completed Improvements. IX. Initial and Annual Reporting 9.1 The Owner further agrees that it will, within sixty (60) days of completion of the Improvements, provide the City with the following information: (a) A copy of the deed showing good title to the Property and Improvements in the name of the Owner; (b) A copy of any mortgages, notes, loans, liens financing statements or deeds of trust against the Property and Improvements. (c) Detailed description of the Improvements subject to this Agreement; (d) A copy of the building plans and specifications for the constructed Improvements if same has not already been filed with the City Building Official; (e) The actual cost of the completed Improvements including all labor and materials; (f) The date of substantial completion of the Improvements; (g) A copy of the updated appraisal of the Improvements from Lamar County Appraisal District (if available). 9.2 Owner shall file Annual Reports with the City on or before February 11 of each year stating that Owner is in compliance with the terms of this Agreement. Owner shall also provide notice to City of any ownership changes or transfer or assignments of liens, notes or mortgages related to the Property or Improvements. X. Authority to Contract 10.1. Each person signing this Agreement represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this Agreement. 10.2 This Agreement shall constitute a valid and binding Agreement between the City and Owner when executed in accordance herewith, regardless of whether any other taxing 5 unit executes a similar agreement for tax abatement. M. Miscellaneous Provisions 11.1 No officer, official or agent of the City has the power to amend, modify or alter this Agreement or waive any of its conditions or to bind the City by making any promise or representation not contained herein. 11.2 This Agreement, except by operation of law, shall not be assigned or transferred by Owner, without the prior written consent of City, which consent shall be at the sole discretion of the City. 11.3 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, addressed to the designated representative of the respective parties which are designated as follows: CITY OF PARIS, TEXAS Attn: City Manager P. 0. Box 9037 Paris, TX 75461-9037 With a co��w Q City '#-M lerk, City of Paris, Texas (address same as above) City Attorney, City of Paris, Texas (address same as above) OWNER: Paris/Lamar County Habitat for Humanity P.O. Box 1555 Paris, Texas 75461 11.4 If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of this Agreement are declared to be severable. 11.5 This Agreement sets forth the entire understanding between the parties, and any other understandings or agreements shall be canceled and superseded by this Agreement upon the date of execution hereof. None of the terms of this Agreement shall be waived, discharged, altered or modified in any respect, except by an Agreement in writing signed by both parties and specifically referring to this Agreement. The captions in this Agreement are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions. 6 11.6 This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Texas. This Agreement shall be performed in Paris, Lamar County, Texas. Venue for any actions arising under this Agreement shall lie exclusively in the courts of Lamar County, Texas, for any State Court action, and in the U.S. District Court for the Eastern District of Texas for any federal court action. Signature page to follow. ATTEST: &.nicc Ellis, City Clerk PP -)LVED AS TO F )RM: St ha ie H. Harris, City Attorney By: ) _— ------ ---- - Paula Portugal, Mayo, PARIS LAMAR COUNTY HABITAT FOR HUMANITY By: - Name: ©n r1le- Title: 8 J101091 W&4) A W-10 M 414 BEFORE ME, the undersigned authority, on this day personally appeared Paula Portugal, Mayor, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, and in the capacity therein stated. Given under my hand and seal of office this ay, 2022. N oW'' Public, State oto Texas BEFORE ME, the undersigned authority, on this day personally appeared Ton h _wi bo r't— of Paris Lamar County Habitat for Humanity, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, and in the capacity therein stated. Ane Given under my hand and seal of office this_ day of4ft 2022. U Ale '•"p . fi Ile w . • d ofti�% • ,YID E)(? I 1 1111111100 0 Public, State kf Texas THE STATE OF TEXAS ) KNOW ALL MEN 13Y THESE PRESENTS. THAT 1, LYNN PATTERSON, as duly authorized agent and attorney in fact for i)ORIS PATTERSON (herein called "grantor"), of Lamar county, Texas, for the purpose of making a gift to the grantee hereinafter named; pAWSg,AMAR COUNTY HABITAT FOR HUMANITY,Texas Non -Profit Corporation (herein called "grantee"), of the County of Lamar, state of Texas, where its mailing address is P- 0. Box 1555, Paiis, Texas 75461-1555, all those certain tracts or parcels of land ix Two (2) rracts of land within the corporate Hinits of the City of Paris, part of tho Larkin Rattan Survey; more fully described in Exhibit 'W' attached hereto and made a part hereof for all necessary purposes. The conveyance evidenced by this deed is made subject to any and all easements, rights-of-way, restrictions, covenants, conditions and reservations of record applicable to the within described property or any part thereof. TO HAVE AND TO HOLD the within described property and premises, together with all and singular the rights and appurtenances thereto in anywise, belonging unto PARIS/LAMAR TV• 2 . I ITI-M 11111111q�111 ;;1111� �� liq 1111111;jIlI1111111111pill 11111111111 1 or assigns forever- 11�x � 11;k I pages: 3 DS isaagra-2e2l By. Julian 11/12/2021 10:06:33 0" Lamar COunty, TX Ruth sisson I Cou,nty clerk WITNESS my hand this 10 A day of November, 2021. A ERSON, as duly authorized agent and attorney in fact for DORIS PATTERSON THE STATE OF TEXAS ACKNOWLEDGIv ENT COUNTY OF LAMAR THIS instnment was acknowledged before me on the jeday of November, 2021, by LYNN PA ON, in the capacity herein stated. CASEY GAJ N NobW Pubil c 0 It ST Wo�ta4ry Pu lic, �State o�ffexa�s lfflf OF TE AS 1 1M1830 . 73133111*41 viol a,.& 21 'IT -0 11 6 0 &FTK9 REP RDWQR0—'1QR Q: PREPARED IN T HE LAW OFFICE OF: A— Paris/Lamar e Cob unty Haitat for Casy Gain, Attorney Humanity, P. 0. Box 1555 e/b The Moore Law Firm, L.L.P. Paris, Texas 75461-1555 100 N. Main, Paris, TX 75460-4222 .f SMC_pw at J.WWVToxas togwa tract or paro4 at land, a part of the larkiz Ratter Surrsy•iv Low Cougtr, TorAa,boUw lob 22 and a part of lob 23 in block 2 of the 00bons Part sAdition to the City of Panic® and doecribod by metas sad bOutas As lbtlowa' ssalunl= wt a atatca in the 178 ldksa of 1p" Strast, rano being the Sit corner of lot 22 in block 2 of sAid sddition. Thence north With. the N8 lino o! aami 150 fess toe atake in a 20 fact alloy, same bei the AW *Omar of and lot 22 SablooY/74f said Additlbn; :hone esot 4dth the SS 31nG of said allot 50 feet® a atoka' bents the ME colter or tot 22 seed the rd namer of lot 23 6f said blaok 2, soutiauing oA eaat 23 Fast to a @take in the IM lino et did lot 23; Thenoa south 150 test to i stake In tbo, tib lino ai Polk street, which point is Aire the as Tito of lot 23 in block 2L Of said sdditioni Tbense v2oet kith the Iib live or asid Street enc tbs SH lino of lata 22 and 23® 73 foot to the place of beg4naing,t , Daing the soma MOV -7 dsapklbod it► deed f xargavot X. rap beery to Berl Yields® 'Tr, dated SopCamisY 12, 14it6, r000rdAd in deed Ic x9jr pagan 171-2 br the rsaotAs of Uww County. Tasaa. m . Pa t j pvrcal or tract of ]sad deecc?bed as follaNaTe�s� No. 30, bock No- 18oi� the bard i t Oilobta—park Addition in the Citr of ` , or , r Tr'ct U in a Sartain judgement of the 67hd. J Court, t8 Tems, in Cause No. 25, 106tibiad fta C. va t PAM i vnb est al. "Id Jn t being of racbrd In Vol. 'M, pages 15'inola-ivor r County, TG=8 ,band record-. 1�°J7�Yi ��P�%Il1r�lUrtilPf�&'ilivi�99i�UUiUUllYil�a,'UWU - b G p1CD11Jd7!/JJ lll6U/1111(/%(hUd6lllllllrti�dl("UU'PZfO%IIIIP 12 RESOLUTION , 1 1 RESIDENTIAL TAX ABATEMENTS AND APPROVING GUIDELINESAND CRITERIAO' THE RESIDENTIALPROGRAM; FINDINGSMAKING OTHER 1 PROVISIONS RELATED TO THE 1 DECLARING AN EFFECTIVE DATE. WHEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their intent to participate in abatement agreements and to adopt guidelines and criteria for granting tax abatements; and WHEREAS, on October 14, 2013 in Ordinance No. 2013-036, the City Council designated Reinvestment Zone No. 2013-1 for residential tax abatements; and WHEREAS, concurrent with Ordinance No. 2013-036, the City Council also approved Resolution No. 2013-036 electing to be eligible to participate in a residential tax abatement program and approving Guidelines and Criteria for Residential Tax Abatement Program as required by statute; and WHEREAS, on February 9, 2015, the City Council passed Ordinance No. 2015-002 amending Reinvestment Zone 2013-1 for Residential Tax Abatements to expand it to include all Council Districts in the City and designated the new reinvestment zone as Reinvestment Zone No. 2015-1; and WHEREAS, on January 9, 2017, the City Council approved Resoulution 2017-001 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, on April 22, 2019, the City Council approved Resoulution 2019-013 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and in 2021, City Council re -authorized Reinvestment zone 2015-01 and renamed it Reinvestment Zone No. 2020-1; and WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criteria for tax abatements are effective for two years from the date adopted; and WHEREAS, the City Council continues to desire to participate in a residential tax abatement program in the City of Paris and has been presented Guidelines and Criteria for a Residential Tax Abatement Program; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City hereby elects to be eligible to participate in a residential tax abatement program and adopts the Guidelines and Criteria for Residential Tax Abatement Program attached hereto and incorporated herein as Exhibit "A". Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 12th day of April, 2021. %J11111MAh'i '10 + �m. :+o? Steve Clifford, D., Mayor ATTEST: =y` %A� 7 ..I... Tice EllPis, City Clerk Stephpie H. Harris, City Attorney GUIDELINES AND CRITERIA APRILCITY OF PARIS, TEXAS 1 The City of Faris will offer residential tax abatement as a stimulus for economic development in designated reinvestment zones located within the corporate city limits of the City of Paris, Texas. The policy of the City is to grant residential tax abatement for new residential structures and modernization, rehabilitation or expansion of existing residential structures that meet minimum investment threshold and comply with these Guidelines and Criteria. All applicants shall be considered on a case-by-case basis. r291419111111, 1 Act -means the Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et, seq., as amended from time to time. Agreement -means a contractual agreement between an applicant and the City of Paris for the purposes of tax abatement. Applicant -means an owner of real property or his authorized agent located in a reinvestment zone or proposed reinvestment zone who requests tax abatement in accordance with these guidelines. Base Year Value — means the assessed value of eligible property on January 1, preceding the date of execution. Eligible Property - means new structure or residential improvements located in a designated Reinvestment Zone. Modernization — means the replacement, expansion and/or upgrading of single-family residential improvements for the purpose of reconditioning, refurbishing or expanding a single-family residence. New Structure - means residential improvements made to a property previously undeveloped which is placed into use by means other than or in conjunction with expansion or modernization_ Reinvestment Zone - means an area designated in accordance with the Act by the City of Paris. Only property in a Reinvestment Zone may be eligible for tax abatement. Residential Improvements - means the construction of new single-family residential structures and all the appurtenances thereto, and includes modernization of existing structures. This term does not include duplexes or multi -family structures. Total Facility - means all improvements constructed. Page 1 of 5 �rr111,'<�I �I�IIrc Value of Improvements — means the appraised value of the residential improvements as determined by the Lamar County Appraisal District and as described in the tax abatement agreement. M. ELIGIBILITY AND GUIDELINES Any real property located within a designated reinvestment zone and zoned by the City of Paris for single family residential development is eligible and may apply for residential tax abatement. As provided in the Art, abatement may only be granted for the value of the Residential Improvements which exceed the base year value of the property and which are listed in an Abatement Agreement between the City of Paris and the property owner, subject to such limitations as the City of Paris may require. Minimum Investment — To be eligible for residential tax abatement, an applicant must construct a new structure on their property or make residential improvements to an existing structure in a minimum amount of twenty percent (20%) of the appraised value of the property as of January I" of the year that the tax abatement agreement between the applicant and the City is signed. Term and.ftMen4jL emwof,Abatement - An applicant who has satisfied all the criteria and guidelines for residential tax abatement as set out herein, will be eligible for tax abatement in accordance with the schedule below. Abatement will become effective in the tax year following the date of completion of the improvements and appraisal of the improvements by Lamar County Appraisal District (LCAD). IV. -SCHEDULE OFWwARATE'„ ANT T* TAX YEAR ABATEM 1 100% 2 100% 3 80% 4 60% $ 40% 6 Zero% *Abatement is applied only to the increased value of the residential improvements that exceeds the base year value as determined by the Lamar County Appraisal District. V. APPLICATION. PROCEDURES Applications for residential tax abatement shall be reviewed for completeness. City staff shall determine whether the application satisfies guidelines and criteria and Staff may request additional information or documents from Applicant. City Staff will make final recommendations on each application to City Council. Any person, partnership, organization, corporation or other entity desiring a residential tax abatement to encourage development within a designated Reinvestment Zone shall comply with the following procedural guidelines. All tax abatement applications shall be evaluated on their own merits within the parameters of these Guidelines and Criteria. 1. Preliminary Application Steps A. Applicant or applicant's agent shall submit an "Application for Residential Tax Abatement" contemporaneously with the application for a building permit. If the building permit is for new single family residential construction or expansion or Page 2 of 5 y�»>' remodeling of a single-family residential structure in an amount that would make the owner eligible for residential tax abatement, then staff will provide applicant with a form application for residential tax abatement. If the applicant for the building permit is not the owner of the real estate and does not make application for residential tax abatement on behalf of the owner, the city staff shall notify the owner (according to Lamar County Appraisal District records) by certified mail, return receipt requested, that residential tax abatement must be filed with the City within ten (10) business days of receipt of the notice. B. If applicant chooses not to apply for residential tax abatement at the time that the building permit is issued, or if the owner fails to respond to the written notice of availability for residential tax abatement, the opportunity for residential tax abatement is waived. City staff shall make a record to reflect owner's election not to participate in the program or to document that owner did not respond to City's notice of opportunity to participate in the residential tax abatement program. The refusal or waiver to participate in residential tax abatement by the owner or applicant shall be binding on subsequent owners of the real property. C. A complete legal description shall be provided. D. Applicant shall complete all forms and information detailed above and submit all forms to the City of Paris Building Official. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. If necessary, applicant will meet with City staff to discuss details of the application and to prepare presentation of the application to the City Council. 3. The application shall designate whether the structure is new or an existing structure and provide an estimate of the value of improvements. 4. If Application for residential tax abatement is approved by staff, Applicant must enter into a tax abatement agreement with the City of Paris and as prepared by the City Attorney. If the Applicant's property is not located within a designated reinvestment zone the application will be rejected and returned to Applicant. b. The City Council reserves the right to amend the boundaries of a reinvestment zone or to designate new reinvestment zones. 7. The City Council reserves the right to amend these policies and guidelines as needed. LEGALDOCUMENTATION PREPARATION VI. D4CUMENTA'I'ION.�......_...._....w, The City Attorney will be responsible for drafting the Residential Tax Abatement Agreement in accordance with state law and these Guidelines and Criteria. The legal document will include the following: Page 3 of 5 1. Estimated value of new structure or residential improvements to be constructed. 2. Percent of value to be abated each year. Effective date and the termination date of abatement. 4. Description of the Improvements, schedule of completion, property description and/or site plan. Applicant agrees to make the new structure or residential improvements available for inspection by City of Paris, or its authorized representatives, and Lamar County Appraisal District during construction and upon completion of the project. 6. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture and administration. CITY OF PARIS, TEXAS APPLICATION FOR RESIDENTIAL TAX ABATEMENT Name: Im. Telephone Number: Contact (if different than owner): Name: I 1VJf . I a J1.(" �#_ �04,'17 � Summary Legal Description Lot: —Block: _ ""-" _Addition: Full Legal Description: Include as an attachment a full legal description with metes and bounds. Improvements: Type of Improvements (please check one). New Constraction: Remodeling: Estimated Value of Improvements: --- - - -- — _- Estimated Start Date of Construction:—_. Estimated Date of Completion of Project: Descriptionof Project: ... . ... . .. ..... ____ . ..... . . ........... .. - - - --- -------- . ..... .. . .... . ...... Applicant(s): [!M Date: Page 5 of 5 Exhibit 3 RESOLUTION NO. -2az2--_DU VCHE w pfoperties immediately adjacent to the Program Area to be eligible to participate In the Program, and WHEREAS, staff has identified changes to the Program's application form that will make the form more user-friendly; 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 amends the guidelines and criteria of the 5 in 5 Residential Infill Development Program in conformance with Exhibit A. attached hereto and incorporated herein by reference to allow properties immediately adjacent to the Program Area eligible to participate in the Program and to revise the Program's application form.. Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 25th day of July, 2022. Paula Portugal, Mayo, APPROVED AS TO FORM: Ste anH. Harris, .... City Attorney 5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM GUIDELINES, CRITERIA & APPLICATION FORM CITY OF PARIS, TEXAS Revised July 25, 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 F-XHISIT E 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. H. 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 Infill 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__and lmmediatel Adjacent thereto, whether foreclosed on due to taxes or not. Also, property located outside the Program Area if foreclosed on due to taxes. _.e i to w aceaxtla al erty ProjLggy whjch lies immediately next to the boundat v of the Proaam Area., includin l2ronertti across a street or intersection or located diagonal_there, om. 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 Infill Development Program, which area is wholly within the boundaries of Reinvestment Zone 2020-1 for the purpose of residential tax abatements. Residential Improvements - The construction of new residential structures and all the appurtenances thereto. This term includes single family, duplexes and multi -family structures. Value of Improvements — The appraised value of the Residential Improvements as determined by the Lamar County Appraisal District and as described in the Agreement. III. ELIGIBILITY AND GUIDELINES Real property is determined eligible under this policy as provided in the Definitions. If property is eligible, an Applicant may apply for an Agreement to receive incentives provided for in this Page 2 of 7 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. 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 Properties -- 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 11 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 11 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 1000/0 50% 10-19 100% 75% 20+ 1000/0 100% Reduced Fees for Water & Sewer Ta Labor — The Applicant will be entitled to reduced rates for water and sewer tap labor fees, where required by the Public Works Department, on a cumulative basis for all new dwelling units under agreement with the City according to the following schedule: Page 3 of 7 No Total Dwelling Units Water Tap Labor Sewer Tap Labor Fee Discount Fee Discount 5-9 50010 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 constructing a minimum of five (5) dwellings within the five (5) year period will result in a reversion of all parcels upon which Residential Improvements have not been constructed and completed to the City and will result in the Applicant 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. Com Bance with all other C:ijy Requirements — The Applicant shall be fully responsible for compliance with all zoning, subdivision platting, and building code requirements as may specifically pertain to the subject paroel(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. V. 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 theme Guidelines and Criteria. 1. Preliminary Application Steps Page 4 of 7 A. Applicant shall work with City Staff to identify eligible tax foreclosure City Trustee 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 at the same time with an application for a building permit(s). I£ 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, the City Staff shall notify the owner (according to the most current records of the Lamar County Appraisal District records) 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 complete 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 to apply for an Agreement prior to the time that the building permit is issued, or if the owner fails to respond to the written notice of availability for 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 deed without warranty 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 dwelling(s) to be constructed are to be retained for ownership, or sold to another owner upon completion of construction. The applicant shall also provide an estimate of the value of improvements as required for building permit application. Page 5 of 7 4. If an application for the 5 In 5 Housing Infill Development Agreement is to be recommended for approval by staff; then an Agreement as defined herein with the City of Paris will be prepared by the City Attorney for approval by the City Council. 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. VI. 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 (5 in 5) Property Owner: Name Current: Name Planned* _ (*Do you plan to re -assign to a buyer upon completion? Yes No Mailing Address: Telephone Number: email: _ Builder or Contact (if different than currentlplanned owner): Name: MaihngAddress: State OC License No: Telephone Number: email Property Parcel(s) Proposed For 5 In 5 Agreement: (Please submit an attached list of addresses and/or LCAD Vs on Excel Spreadsheet, if possible) No. LCAD Address Lot BIL Addition 1. .2. 3. 4. 5. Add additional sheets if necessary. Full Legal Description: Include as an attachment a full legal description with metes and bounds or a copy of the deed, if available. Improvements: Type improvements for new Construction: SF_ 2F 3F Quad MF Total Number of Dwelling Units: Estimated Value of Improvements by type: Estimated Start Date of Construction: Estimated Date of Completion of Project(s) _ Description of Project (attach site plan, floor plan, etc.: Owner's Signature: Date: Applicant(s) Signature: Date: Page 7 of 7