15 - Tax Abatement Agreement for Ametsa PackagingItem No. 15
TO:
Mayor, Mayor Pro Tem, and City Council
Grayson Path, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Tax Abatement Agreement for Ametsa Packaging, LLC
DATE: April 24, 2023
BACKGROUND: Ametsa Packaging, LLC ("Ametsa") recently purchased the property and
facility 2020 19" NW formerly owned and operated by J. Skinner and intends to convert it to a
facility for the manufacturing and packaging of sugar and sweeteners through the installation of
specialized high speed equipment, with the possibility of changing product lines or adding product
lines at a later date. The attached agreement provides for a minimum capital investment of $3.5
million, with minimum job creation and retention of 15 FTEs with benefits throughout the term
of the agreement, although the company estimates that it will create up to 50 new jobs by the end
of the first year of operation. The PEDC will be entering a performance agreement with Ametsa
as well.
The abatement is for 7 years and will be granted on a de-escalating basis: 100% for the first two
years, 75% years 3 and 4, 50% for years 5 and 6, and 25% for year 7. The abatement expires on
December 31, 2030.
STATUS OF ISSUE: Pending City Council approval of tax abatement agreement.
BUDGET: Seven year abatement on the improvements set out in the Agreement.
RECOMMENDATION: Motion to adopt a resolution approving tax abatement agreement
between City of Paris and Ametsa Packaging, LLC in substantial conformance with the attached
agreement and authorize the mayor to execute same on behalf of the city,.
RESOLUTION
employment base of the Paris area for the long term interest and benefit of the City and il
citizens; and,
WHEREAS, under the Texas Enterprise Zone Act (Texas Government Code Chapter
2303), and the Redevelopment and Tax Abatement Act (Texas Tax Code Sec. 312.2011) the
designation of an area as an Enterprise Zone also constitutes designation of the area as a
reinvestment i i
WHEREAS,WHEREAS, Owner owns certain property located at 2020 19th St. NW, Paris, Texas
75460 (the "Property") within the City of Paris, Lamar County� Texas, which, pursuant to the
2020 Census is included within an Enterprise Zone; and
Owner has agreed to install equipment and machinery (the
"Improvements") at the existing facility located on the Property, for the purpose of
manufacturing and packaging of sweeteners and sugars; and
WHEREAS, the Owner has agreed to create and maintain at lust thirty-five (3 5) full-
time equivalent employment positions with benefits in the first year of operation and up to
one hundred (100) such positions by the end of the fifth year sof operation; and
WHEREAS, the contemplated use of the Improvements as hereinafter defined, in the
amount as set forth in this Agreement upon and within the Property, and the other terms
hereof are consistent with encouraging development of said Enterprise Zone in accordance
with the purposes for which it was created and are in compliance with the City's policy on
tax abatement incentives and all applicable laws; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section The findings set out in the preamble to this resolution are hereby in all
things approved®
Section 2. That the terms of the Tax Abatement Agreement and the property the
subject thereof meet the Citv's Guidelines and Criteria for Tax Abaternentadowtff",w-tVe
of Paris by Resolution No. 2022-002 and will lead to the economic development of the
Enterprise Zone.
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as Exhibit A. having been reviewed by the City Council of the City of Paris and found
to be acceptable and in the best interests of the City of Paris and its citizens, be, and the same
are hereby, in all things approved.
Section 4. That the Mayor is hereby authorized to execute the Agreement and all
other documents in connection therewith on behalf of the City of Paris substantially
according to the terms and conditions set forth in the Agreement attached hereto as Exhibit
A.
Section 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 24th day of April, 2023.
Paula Portugal, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
STATE OF TEXAS
COUNTY OF LAMAR
TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement (the "Agreement") is entered into by and between the
CITY OF PARIS, TEXAS, a municipal corporation, situated in Lamar County, Texas, acting by
and through its authorized officer whose signature appears below (hereinafter called "City"),
and AMETSA PACKAGING, LLC, a Texas Limited Liability Company, acting by and through
its authorized officer whose signature appears below (hereinafter referred to as "Owner').
WITNESSETH:
WHEREAS, the City Council of the City of Paris did heretofore, on the 10th day of
January, 2022, in Resolution No. 2022-002, elect to be eligible to participate in tax abatement
agreements in order to maintain and enhance the commercial and industrial economic and
employment base of the Paris area for the long term interest and benefit of the City and its
citizens; and,
WHEREAS, under the Texas Enterprise Zone Act (Texas Government Code Chapter
2303), and the Redevelopment and Tax Abatement Act (Texas Tax Code Sec. 312.2011) the
designation of an area as an Enterprise Zone also constitutes designation of the area as a
reinvestment zone (the "Reinvestment Zone"); and
WHEREAS, Owner owns certain property located at 2020 19th St. NW, Paris, Texas
75460 (the "Property") within the City of Paris, Lamar County, Texas, which, pursuant to the
2020 Census is included within an Enterprise Zone, as is shown in the print-out from the
Office of the Governor of the State of Texas on its website in Exhi i 1, attached hereto and
made a part hereof for all purposes; and
WHEREAS, Owner has agreed to install the equipment and machinery ("Business
Personal Property" or "BPP") set forth herein at the existing facility located on the Property,
for the purpose of manufacturing and packaging of sweeteners and sugars via the installation
of specialized, high-speed equipment, packaging lines, and ancillary equipment; and
WHEREAS, the Owner has agreed to create and maintain at least thirty-five (35) full-
time equivalent employment positions with benefits in the first year of operation and up to
one hundred (100) such positions by the end of the fifth year of operation; and
WHEREAS, the contemplated use of the BPP as herein defined, in the amount as set
forth in this Agreement upon and within the Property, and the other terms hereof are
consistent with encouraging development of said Enterprise Zone in accordance with the
purposes for which it was created and are in compliance with the City's policy on tax
abatement incentives and the ordinance creating such Enterprise Zone adopted by the City
and all applicable laws; and
NOW, THEREFORE, pursuant to Chapter 312 of the Texas Tax Code and the
Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2020-002, the parties
hereto do mutually contract and agree as follows:
I.
Term
1.1 The effective date of this Agreement is the 24th day of April, 2023, with the
tax abatement being effective from and after January 1, 2024, or January 1St of the year
immediately following completion of the installation of BPP set forth herein, and
terminating on December 31, 2030 (an abatement period of seven (7) years (the
"Abatement Period")). Said Abatement Period will terminate on December 31, 2030,
regardless of when Owner completes the Improvements described in Sections II and III
herein below.
II.
The "Property" = Area to be Improved
2.1 The Improvements defined in paragraph III below and made the subject of this
Agreement shall be located on the Property located in Paris, Lamar County, Texas and
described in Exhibit 2. attached hereto and incorporated herein by reference, which
Property is within the Enterprise Zone.
III.
Consideration: Installation of BPP
3.1 The Owner shall convert and operate an existing facility into a facility for the
manufacturing and packaging of sweeteners and sugars via the installation of specialized,
high-speed equipment, packaging lines, and ancillary equipment (herein called the
"Equipment" or the "BPP") at the Property located in Paris, Lamar County, Texas, which BPP
is more particularly described in Exhibit 3 attached hereto and incorporated herein by
reference. Owner commits herein to invest no less than THREE MILLION FIVE HUNDRED
THOUSAND AND NO/100 DOLLARS ($3,500,000.00) to construct the Improvements and
install BPP. All of said improvements shall be described in the City's Certificates of
Completion defined in Section X, "Reporting Requirements." For the purposes of the default
provision of this Tax Abatement Agreement (Section V), the installation of the Equipment
will be deemed completed upon the issuance by the City of a Certificate of Occupancy for the
structure in which the Equipment has been installed. Once Owner has applied for said
Certificate of Occupancy, the City shall not unreasonably delay the issuance of same.
Notwithstanding the foregoing, however, Owner shall have such additional time to complete
the installation of the Equipment as may be required in the event of "force majeure" if Owner
is diligently and faithfully pursuing completion of thereof. For this purpose, "force majeure"
shall mean any contingency or cause beyond the reasonable control of Owner including,
without limitation, acts of God, any natural disaster, war, riot civil commotion, insurrection,
governmental or de facto governmental action unless caused by acts or omissions of Owner,
fires, explosions, accidents, floods, and labor disputes or strikes.
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3.2 The Owner agrees and covenants that it will diligently and faithfully, in a good
and workmanlike manner, pursue the completion of the installation of Equipment specified
in Exhibit 3. As good and valuable consideration for this Agreement, Owner further
covenants and agrees that all installation of the Equipment will be in accordance with all
applicable state and local laws, codes, and regulations, or Owner will procure a valid waiver
thereof. In further consideration, Owner shall thereafter, from the date a Certificate of
Occupancy for the structures in which the Equipment is located is issued or the installation
of the Equipment is completed as agreed until the expiration of this Agreement, continuously
operate and maintain the Equipment for the manufacturing and packaging of sweeteners and
sugars, or additional lawful business purposes so long as Owner's employment obligations
under Section IV are met.
IV.
Consideration
Jobs
4.1 The City has provided in its Guidelines and Criteria for Tax Abatements, that
in order to be eligible for a tax abatement, a new employer must make a minimal capital
investment of $1,000,000.00 and create at least ten (10) new jobs. Owner herein has
committed to a minimum investment of $3,500,000.00, and has committed to creating at
least fifteen (15) new full-time equivalent with benefits positions by the end of the first year
of operation with an estimated direct payroll of approximately two hundred fifty thousand
($250,000) per month after said first year of operation. These full-time equivalent with
benefits positions shall be created and staffed within one (1) year of the commencement of
this Agreement.
4.2 In order to qualify for the tax abatement provided for herein, Owner must both
create said fifteen (15) full-time equivalent positions according to the above schedule and
retain those positions throughout the remaining years of the abatement period.
V.
Default
5.1 In the event that (a) the installation of the Equipment for which an abatement
has been granted is not completed in accordance with this Agreement or the expenditure for
the Equipment does not meet the amount required herein; or (b) Owner allows its ad
valorem taxes owed the City to become delinquent and fails to timely and properly follow
the legal procedures for protest or contest of any such ad valorem taxes; or (c) Owner fails
to create and retain the required full-time equivalent positions set forth herein and on the
schedule set forth herein; or (d) Owner materially breaches any of the other terms and
conditions of this Agreement, then this Agreement shall be in default. In the event the Owner
defaults in its performance of either (a), (b), (c), or (d) above, the City shall give the Owner
written notice of such default. If the Owner has not cured such default within sixty (60) days
of said written notice, this Agreement may be modified or terminated by the City. Notice
shall be in accordance with paragraph 13.3. As damages in the event of default, in accordance
with the requirements of Section 312.205 (a)(4) of the Tax Code of the State of Texas, all
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taxes which otherwise would have been paid to the City without the benefit of abatement,
together with interest to be charged at the statutory rate for delinquent taxes a determined
by Section 33.01 of the Tax Code of the State of Texas, with all penalties permitted by the
Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall
be recaptured and will become a debt to the City and shall be due, owning, and paid by Owner
to the City within sixty (60) days of the expiration of the above-mentioned applicable cure
period as the sole remedy of the City, subject to any and all lawful offsets, settlements,
deductions, or credits to which Owner may be entitled.
VI.
Tax Abatement
6.1 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 ad valorem taxes from the
Property otherwise owed to the City shall be abated. Said abatement shall be an amount
equal to the following percentages of the maintenance and operation (M&0) portion of the
taxes assessed upon the increased value of the Property attributed to the Equipment
described in Section III of this Agreement and specified in Exhibit 3 hereto, over the value
in the year which this Agreement is executed (the "Base Value"), in accordance with the
terms of this Agreement and all applicable state and local regulations or valid waivers
thereof, provided that the Owner shall have the right to protest or contest any assessment of
the Property and said abatement shall be applied to the amount of taxes finally determined
to be due as a result of any such protest or contest:
Year 1
100%
Year 2
100%
Year 3
75%
Year 4
75%
Year 5
50%
Year 6
50%
Year 7
25%
For the purposes of this Agreement, the Base Value of the existing real property shall be
deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as
of January 1, 2023. Owner understands and agrees that pursuant to Texas Tax Code Sec.
312.204, no taxes will be abated under this agreement for any BPP located on the
Property prior to the effective date of this Agreement, nor will the abatement apply to
any BPP acquired and installed after the issuance of the City has issued its Certificate
of Completion
6.2 The abatement granted herein shall be subject to and governed by the Criteria
and Guidelines for Tax Abatement, a copy of which is attached hereto as Exh' ' 4 and
incorporated herein by reference, save and except that, in the event of a conflict between the
requirements of Exhibit 4 and this Agreement, this Agreement shall control.
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6.3 Owner covenants and agrees that subsequent to the date of this Agreement,
any application by Owner for a new tax abatement for equipment or real property located
within the Property and the Enterprise Zone applicable to this Agreement shall be subject to
and governed by the City's Criteria and Guidelines for Tax Abatement in effect at the time of
the new application.
VII.
No Conflict of Interest
7.1 The Owner represents and warrants that the Property does not include any
Property that is owned or leased by a member of the Planning and Zoning Commission of the
City of Paris, nor by a member of the City Council approving, or having responsibility for the
approval of, this Agreement.
VIII.
Conditions
8.1 The terms and conditions of this Agreement are binding upon and enforceable
against and with respect to the successors and assigns of all parties hereto.
8.2 It is understood and agreed between the parties that the Owner, in performing
its obligations hereunder, is acting independently; the City assumes no responsibility or
liability in connection therewith to third parties; and Owner agrees to indemnify and hold
the City harmless therefrom. It is further understood and agreed among the parties that the
City, in performing its obligations hereunder, is acting independently; the Owner assumes
no responsibility or liability in connection therewith to third parties; and, to the extent
permissible by law, the City agrees to indemnify and hold harmless the Owner therefrom.
IX.
Compliance Provisions
9.1 Ci Right o Re r : The Owner agrees that the City, its agents
and employees, shall have the reasonable right to review records concerning the Owner's
investment in the Improvements for the purpose of conducting an audit of the Project
Improvements and Project costs. Any such audit shall be made only after giving the Owner
at least fourteen (14) days advance written notice and will be conducted in such a manner
as to not unreasonably interfere with the operation of the facility. Upon request, the Owner
will provide the City with a detailed Asset Report with an itemized list of assets placed into
service from the date of execution of this Agreement to the date of completion. The Asset
Report will provide for each asset a unique serial and/or other identification number (if
available), the date on which the asset was capitalized, the acquisition amount, and the
accumulated depreciation amount. At the City's request, the Owner will provide actual
invoices to support the amounts shown on the Asset Report. To the extent allowed by the
Texas Public Information Act, the City shall maintain all Owner records and details as
confidential.
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AceoProe9.2 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 ensure that the installation of any Equipment is in accordance
with this Agreement and all applicable state and local laws and regulations or valid waiver
thereof. After completion of the installation of the Equipment, the City shall have the
continuing right to inspect the Property during the term of the Agreement. All inspections
will be made only after giving the Owner written notice at least seventy-two (72) hours in
advance, and such inspections shall be conducted in such a manner so as not to interfere with
the operation of the facility. Representatives of the City inspecting the Property and
Improvements shall be accompanied and by one (1) or more representatives of the Owner
and shall sign an Agreement promising to maintain the confidentiality of any information
they obtain in connection therewith except for the purposes of assessing and collecting ad
valorem taxes and verifying or enforcing compliance with this Agreement, or as otherwise
required by law. Said representative shall also be required to observe any facility rule and
regulation applicable to the Property. Nothing herein shall be construed as limiting the City's
ability to perform inspections or to enter the Property the subject of this Agreement.
X.
Reporting Requirements
10.1 Initial Report: The Owner further agrees that it will, by April 15, 2024,
provide the City with a sworn report, written on Owner's letterhead and signed by a
designated representative of Owner, which contains the following information relating to
the Improvements completed and Equipment installed in the year 2023:
(a) A copy of the printout from the Lamar County Appraisal District showing the
market value of the Property as of January 1, 2023, prior to the construction
of the Improvements and installation of Equipment;
(b) Detailed description of the Improvements or Equipment;
(c) A detailed description of any miscellaneous items of capitalized office
equipment and the actual cost of such added office equipment;
(d) A detailed list of and the actual cost of added machinery and equipment;
(e) The actual cost of capital Improvements; and,
(f) The date of substantial completion of the installation of the Equipment as
defined in paragraph 3.1 hereof.
10.2 Annual Report on Compliance for Each Year of the Abatement Period:
In addition to the report required in Paragraph 10.1 hereinabove, Owner further agrees
that by April 15th of each year of this Agreement beginning in the year 2025, it will
provide the City with an annual sworn report which shall certify, in writing, that it is in
compliance with each applicable term of this Agreement. Such annual report shall be
furnished in the form attached hereto as Exhi and shall reflect the prior fiscal year.
Owner shall attach thereto copies of the employer reference summary page of its Texas
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Workforce Commission Employer's Quarterly Reports for the calendar year immediately
preceding the date of the annual report required by this section, and the report shall
contain a sworn statement signed by the Plant Manager or an Officer of the Company
certifying that the information provided in the summary page is a true and valid report
filed with the Texas Workforce Commission.
10.3 The reporting requirements and deadlines set forth herein are an integral
and material part of this Agreement, and Owner acknowledges that failure to timely
submit any report or sworn statement required herein is a breach and default of this
Agreement as set forth hereinabove. Owner further agrees to timely submit said reports
and/or sworn statements without prompting by the City.
10.4 Owner shall submit all compliance reports required to by this section via
certified mail, return receipt requested, to:
City of Paris
c/o Office of the City Attorney
P.O. Box 9037
Paris, Texas 75461-9037
Alternatively, said reports may be delivered personally to the Office of the City Attorney at
135 SE 1st St., Paris, Texas 75460.
XI.
City's Certificate of Completion
11.1 Within thirty (30) days of receipt of the Initial Report required by paragraph
10.1 hereinabove, or as soon thereafter as practicable should the City require additional
information from the Owner, the City shall:
(a) review same for compliance with the terms of this Agreement;
(b) verify that the Equipment installations identified in the Report and required
by the terms of this Agreement have been completed;
(c) and, if the required installations have been made, deliver a Certificate of
Completion in the forms attached hereto as Exhibit G and executed by the
Mayor to the Chief Appraiser of the Lamar County Appraisal District. The City
shall attach to said Certificate of Completion a copy of the information
provided by Owner in its Initial Report as an identification of Equipment upon
which the tax abatement is to be granted.
11.2 In the event that the City requires additional information in order to conduct
the review and verification contemplated by paragraph 11.1 hereinabove, the City shall
notify the Owner of same as soon as is practicable, but no later than thirty (30) days after
receipt of the Initial Report.
11.3 Nothing in this section shall prohibit the City from exercising its right to declare
Owner in default or Owner's right to cure same in accordance with the terms of Section V
hereinabove.
XII.
Authority to Contract
12.1 This Agreement was authorized by resolution of the City Council at its
regularly scheduled meeting on the 24th day of April, 2023, authorizing the Mayor to execute
the Agreement on behalf of the City.
12.2 This Agreement was entered into by Ametsa Packaging, LLC pursuant to the
authority granted to the authorized official whose signature appears below.
12.3 This Agreement shall constitute a valid and binding Agreement between the
City and Owner when executed in accordance herewith, regardless of whether any other
taxing unit executes a similar Agreement for tax abatement.
XIII.
Legal
13.1 No officer, official or agent of the City has the power to amend, modify or alter
this Agreement or waive any of its conditions or to bind the City by making any promise or
representation not contained herein.
13.2 This Agreement, except by operation of law, shall not be assigned or
transferred by Owner, without the prior written consent of City, which consent, not to be
unreasonably withheld, shall be at the sole discretion of the City.
13.3 Any written notice required or permitted under the terms of this Agreement
shall be given and be deemed to have been duly served if either (1) delivered in person, (2)
deposited certified mail, return receipt requested, postage prepaid in the United States mail,
or (3) sent by recognized carrier with shipment tracking number addressed to the
designated representative of the respective parties which are designated as follows:
OWNER:
Ametsa Packaging, LLC
Attn: President
202019th St. NW
Paris, Texas 75460
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P.O. Box 9037
Paris, TX 75461-9037
Alternatively, said reports may be delivered personally to the City Manager at 135 SE
1st St., Paris, Texas 75460
With a copy to:
City Clerk, City of Paris, Texas (address same as above)
City Attorney, City of Paris, Texas (address same as above)
13.4 If any term or provision of this Agreement shall be declared unconstitutional
or void by any court of competent jurisdiction, the constitutionality and validity of the
remainder of said Agreement shall not be affected thereby, and to this end the terms and
provisions of this Agreement are declared to be severable.
13.5 This Agreement sets forth the entire understanding between the parties, and
any other understandings or agreements shall be canceled and superseded by this
Agreement upon the date of execution hereof. None of the terms of this Agreement shall be
waived, discharged, altered or modified in any respect, except by an Agreement in writing
signed by both parties and specifically referring to this Agreement. The captions in this
Agreement are included for convenience only and shall not be taken into consideration in
any construction or interpretation of this Agreement or any of its provisions. This
Agreement is performable in Lamar County, Texas, and shall be governed by, construed and
enforced in accordance with the laws of the State of Texas. The provisions of this Agreement
shall apply to, bind and inure to the benefit of the City, Owner, and their respective
successors, and permitted assigns, if any.
13.6 Venue for any actions arising under this Agreement shall lie exclusively in the
courts of Lamar County, Texas for any State Court action, and in the U.S. District Court for the
Eastern District of Texas for any federal court action.
13.7 Owner and the City have both contributed to the drafting of this Agreement,
and no ambiguity, if any, contained in this Agreement shall be construed against either party.
13.8 MANDAURY ANTI -B Y TT AND_QT_HEg PROVISION.S. Owner, by executing
this agreement, certifies the following:
Pursuant to Section 2271.002 of the Texas Government Code, Owner
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. Owner acknowledges this Agreement
may be terminated and payment withheld if this certification is
inaccurate.
ii. Pursuant to SB 13, 87th Texas Legislature, Owner 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. Owner acknowledges this Agreement may be
terminated and payment withheld if this certification is inaccurate.
iii. Pursuant to SB 19, 87th Texas Legislature, Owner 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. Owner acknowledges this Agreement
may be terminated and payment withheld if this certification is inaccurate.
iv. Pursuant to Subchapter F, Chapter 2252, Texas Government Code, Owner
certifies Owner (1) is not engaged in business with Iran, Sudan, or a foreign
terrorist organization. Owner acknowledges this Agreement may be
terminated and payment withheld if this certification is inaccurate
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as
of the date set forth below.
WITNESS our hands this _ day of2023.
THE CITY OF PARIS, TEXAS
Paula Portugal, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
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AMETSA PACKAGING, LLC
Name: Carlos de Aldecoa
Title: President
Date:
ATTEST„
Title:
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LIST OF EXHIBITS:
2020 Designation of Enterprise Zone which includes the Property
2. Map of the Property and Property Description
3. Description of Equipment
4. Resolution No. 2022-002; Criteria and Guidelines for Tax Abatement
FORMS: Certificates of Compliance
6. FORM: Certificate of Completion
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Exhibit 1
2020 Designation of Enterprise Zone which includes the Property
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Legal Description:
Exhibit 2
Map of the Property and Property Description
The Property
Situated within the Corporate Limits of the City of Paris, County of Lamar, and State of Texas, a part of the
Reding Russell Survey, Abstract No. 786, and being a part of a tract of land conveyed to 2020 Paris, LLC,
by deed recorded as Lamar County Document Number 198120-2022, and being further described as
follows:
Beginning at a concrete monument found at the intersection of the East Boundary line of 19th Street
Northwest (F.M. Highway 79) and the South Boundary Line of Loop Highway 286, being the Northwest
corner of said 2020 Paris tract;
Thence along the South Boundary Line of Loop Highway 286 as follows:
North 58005'51" East a distance of 340.95 feet to a concrete monument found for corner;
North 67004'56" East a distance of 250.95 feet to a concrete monument found for corner;
North 60°11'00" East a distance of 351.99 feet to a concrete monument found for corner;
North 68°02'24" East a distance of 203.33 feet to an iron pin found for corner;
North 89°13'00" East a distance of 104.00 feet to an iron pin found for corner;
North 01°14'00" West a distance of 43.00 feet to an iron pin found for corner;
North 66°51'00" East a distance of 191.20 feet to a nail found for corner;
North 58°19'00" East a distance of 101.10 feet to a concrete monument found for corner;
North 66053'56" East a distance of 400.41 feet to a concrete monument found for corner;
North 72030'43" East a distance of 147.66 feet to a nail found for corner;
North 66053'56" East a distance of 35.40 feet to a nail found at the most Northerly Northeast corner of
said 2020 Paris tract, the Northwest corner of a tract of land conveyed to AAA Mini Storage Addition by
deed recorded as Lamar County Doc. No. 172912-2020 and a Northwest corner of a channel easement
recorded in Volume 610, Page 113, of the Lamar County Deed Records;
Thence South 03°10'26" East with the East Boundary Line of said 2020 Paris tract and the West Boundary
Line of said AAA Mini Storage tract and of said channel easement a distance of 371.86 feet to a nail found
for corner;
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Thence South 04'10'00" West, continuing with said common line and at 30.76 feet passing the Southwest
corner of the AAA Mini Storage tract and a Northwest corner of a tract of land conveyed to Rentone, LLC,
by deed recorded as Lamar Co. Doc. No. 172912-2022, continuing in all a distance of 783.00 feet to a point
at an inside corner of the 2020 Paris tract and the Southwest corner of said Rentone tract;
Thence South 80°27'10" East with the North Boundary Line of said 2020 Paris tract and the South
Boundary Line of said Rentone tract a distance of 254.10 feet to a wood fence post found for corner,
Thence Easterly along a barbed-wire fence, being the North Boundary Line of said 2020 Paris tract and the
South Boundary Line of said Rentone tract as follows:
South 08°11'41" East a distance of 41.84 feet to a wood fence post found for corner;
South 89°19'06" East a distance of 223.24 feet to a wood fence post found for corner;
North 76°45'51" East a distance of 409.67 feet to a wood fence post found for corner;
North 85010'34" East a distance of 185.59 feet to a wood fence post found for the most Easterly Northeast
corner of said 2020 Paris tract and the Southeast corner of said Rentone tract;
Thence South 00°39'56" East with the East Boundary Line of said 2020 Paris tract and the West Boundary
Line of a Cemetery a distance of 63.20 feet to a wood fence post found for corner;
Thence South 81°03'00" West with the South Boundary Line of said 2020 Paris tract and the North
Boundary Line of said Cemetery a distance of 9.69 feet to a wood fence post found for corner;
Thence South 00°08'39" West with the East Boundary Line of said 2020 Paris tract and the West Boundary
Line of said Cemetery, along this course passing the Southwest corner of the Cemetery tract and the
Northwest corner of a tract of land conveyed to Huhtamaki, Inc., by deed recorded as Lamar County
Document #090649-2011, continuing in all a distance of 816.87 feet to an iron pin found at the Southeast
corner of said 2020 Paris tract and the Southwest corner of said Huhtamaki tract;
Thence North 86°00'00" West with the South Boundary Line of said 2020 Paris tract and the North
Boundary Line of Center Street a distance of 296.00 feet to an iron pin found for corner;
Thence South 89°20'58" West, continuing with said common line, a distance of 2654.63 feet to an iron pin
set in the East Boundary Line of 19th Street Northwest (F.M. Highway 79), being the most Southerly
Southwest corner of said 2020 Paris tract;
Thence North 45°00'00" West with the West Boundary Line of said 2020 Paris tract and said East Boundary
Line a distance of 28.00 feet to a concrete R.O.W. marker found for corner;
Thence North with said common line (bearing per Doc. #198120-2022) a distance of 800.66 feet to a
concrete monument found for corner;
Thence North 06°28'17" East, continuing with said common line, a distance of 284.43 feet to the point of
beginning, and containing 89.345 acres of land.
15
16
Exhibit 3
Description of Equipment
Automated packaging lines for varying formats and sizes of packaging for sweeteners,
sugars and related products.
Types of equipment may include:
• Silos
• Hoppers
• Bag formers
• Fillers
• Cappers
• Sealers
• Weighers
• Metal detectors
• Conveyors
• Box formers
• Label machines
• Ink jets
• Stackers/palletizers
• Shrink wrappers
• Controllers
• Other related machinery
17
Exhibit 4
Resolution No. 2022-002; Criteria and Guidelines for Tax Abatement
18
RESOLUTION N0. 2022-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
AUTHORIZING THE CITY TO BE ELIGIBLE TO PARTICIPATE IN PROPERTY
TAX ABATEMENTS AND APPROVING GUIDELINES AND CRITERIA FOR
GRANTING TAX ABATEMENTS IN THE CITY OF PARIS, TEXAS; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, Section 312.002 of the Texas Tax Code requires local taxing units to state every
two years their intent to participate in property tax abatement agreements, and to adopt guidelines
and criteria for granting tax abatements, and to conduct a public hearing prior to said authorization
and adoption; and
WHEREAS, the City Council last adopted Criteria and Guidelines for Tax Abatement on
January 13,2020; and
WHEREAS, on January 10, 2022, the City Council conducted a public hearing as required by
law; and
WHEREAS, after considering public comment, if any, at said public hearing, the City Council
of the City of Paris, Texas hereby reaffirms its intent to be eligible to participate in property tax
abatements in accordance with Chapter 312 of the Texas Tax Code and to adopt the Guidelines and
Criteria for Tax Abatement attached hereto and incorporated herein as FSA; and
WHEREAS, a three-quarters majority vote of the City Council of the City of Paris, Texas is
required to amend the Guidelines and Criteria for Tax Abatement; and
WHEREAS, the City Council elects to readopt the Guidelines and Criteria for Tax Abatement
adopted on January 13, 2013 without amendment;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. The City hereby elects to be eligible to participate in a property tax abatement
program and approves and adopts the Guidelines and Criteria for Tax Abatement attached hereto
and incorporated herein as ExhibkA.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 10th day of January, 2022.
Paula Portugal, Mayor�r'
STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned notary, on this day personally appeared
the affiant, a person whose identity is known to me. After I administered
an oath to affiant, affiant testified:
"My name is .. _.... _. m. I am capable of making this verification. I have read
the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within
my personal knowledge and are true and correct, and I further certify that the Employer
Reference Summary pages are true and correct copies of those reports filed with the Texas
Workforce Commission."
Signature of Company Representative
Position/Title
Sworn to and subscribed before me this the day of _- ..............-. w., ,.,.,,,, 20_.
Notary Public, State of Texas
FA wt*qj IA
Ellis, City Clerk
APPROVED AT TO FORM:
Stephanie H. Harris, City Attorney
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAXABATEMENT
I. General Purpose and Objectives.
The City of Paris (City) and Lamar County Government (County) (collectively, herein called the
"Taxing Jurisdictions") are committed to enhancing the competitiveness and expansion potential of
local industry; to attracting and encouraging new manufacturing industry and investment; to
improving the City of Paris, Lamar County and its infrastructure, which attracts and supports
development; and, to expanding the tax base, employment opportunities, and the overall quality of
life for its citizens. Therefore, the governing bodies of the Taxing Jurisdictions will give
consideration, on a case-by-case basis, to providing tax abatements to the owners of real and
personal property for projects that stimulate economic growth and diversification in the geographic
areas served by the Taxing Jurisdictions, according to state law and consistent with these policies,
criteria and guidelines.
Tax abatements may be made available to industrial, manufacturing, distribution, service facilities,
or any "primary jobs" creating industry as defined by the Economic Development Act of the State
of Texas. The facility must be currently in, or locating in the areas served by the Taxing
Jurisdictions, and located in a designated Enterprise Zone or Reinvestment Zone. New facilities
and structures as well as the expansion and modernization of existing facilities and structures, will
be considered. Evaluation of a tax abatement request will be based on the information provided in
the tax abatement application. However, the City of Paris and Lamar County are under no
obligation to provide tax abatements to any applicant.
The Paris City Council acts as the lead entity for projects located in the City limits. The Lamar
County Board of Commissioners acts as the lead entity for projects in Lamar County, which are
located outside of the City limits. All governing bodies of the Taxing Jurisdictions have adopted
like policies, criteria and guidelines and will consider tax abatement requests that qualify
thereunder_
II. Definitions.
Definitions are provided as an Appendix A.
M. Designation of a Reinvestment Zone.
For any facility located within the area served by the Taxing Jurisdictions to be eligible for tax
abatement it must meet the criteria for designation as a tax abatement reinvestment zone as set forth
in the Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312. The City
or County may designate an area as a reinvestment zone in accordance with the criteria and
procedural requirements set forth in the Property Redevelopment & Tax Abatement Act, as
amended (Texas Tax Code Sec. 312.401. (b)). Pursuant to Texas Tax Code Sec. 312.2011,
designation of an area as an enterprise zone under Chapter 2303 of the Texas Government Code
constitutes designation of the area as a reinvestment zone without further hearing or procedural
requirements other than those provided under said Chapter 2303.
IV. Tax Abatement Authorized.
The Taxing Jurisdictions, through their elected governing bodies, may agree in writing with the
owner and/or lessee of taxable real and/or personal property that is located in a reinvestment zone,
but that is not in an improvement project financed by tax increment bonds, to exempt from taxation
EXHIBIT k
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
a portion of the value of the real property, or of personal property located on the real property, or
both. The period of the abatement granted under the agreement shall not exceed the term authorized
by law. Such agreement will be based on the condition that the owner or lessee of the property
makes specific improvements or repairs to the property. An agreement may provide for the
exemption of the real property in each year covered by the agreement only to the extent its value
for that year exceeds the base year value. An agreement may provide for the exemption of personal
property located on the real property in each year covered by the agreement other than personal
property that was located on the real property at any time before the period covered by the
agreement. Inventory or supplies cannot be abated as personal property.
Tax abatements may only be granted for additional value of eligible property improvements made
subsequent to and specified in an abatement agreement between the Taxing Jurisdictions and the
property owner or lessee subject to such limitation as the Taxing Jurisdictions may require. The
additional value must exceed any reduction in the fair market value of other property of the owner
already on the tax roll within the area served by the Taxing Jurisdictions. Change in appraised
value does not qualify for abatement except in an instance where a previously vacant authorized
facility is utilized. Value added to the tax rolls must come from actual capital expenditures.
The negotiation of tax abatement agreements will be conducted by the Paris Economic
Development Corporation's ("PEDC") executive director, in close consultation with the city
manager. In determining where and how tax abatements will be utilized, the executive director
will examine the potential return on the public's investment. Return on public investment will be
measured in terms of (i) jobs created, (ii) jobs retained in cases of existing employers within the
Taxing Jurisdictions, and (iii) broadening of the tax base and expansion of the economic base (e.g.
capital investment, payroll, local spending, etc.).
V. Eligibility Criteria for Tag Abatement for Real and Personal Property
A property owner and/or lessee shall be eligible for tax abatement only upon the following criteria.
Fllg_tbilitl Criteria for Tax Abatement
Authorized I. An authorized facility is used for manufacturing, research, regional distribution, regional services, regional
Facility tourist entertainment, other basic industry, or any primary jobs creating industry. (See Appendix A for
definitions.)
2. A new authorized facility must be created, or an existing authorized facility must be improved, modernized
or expanded.
3. If a leased authorized facility is granted abatement, the agreement may be executed with the lessor and/or
lessee, depending upon the particular circumstances of the proposed project. If the agreement is with the lessor,
lessor shall demonstrate binding contracts with the lessee to guarantee compliance with the terms of the
Eligible 1. The property involved must be a newly created, or improvements to an existing, authorized facility.
Property 2. Eligible property for which abatement may be granted includes nonresidential real property and/or tangible
personal property not located on the real property at any time before the abatement agreement becomes
effective.
3. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site
improvements, tangible personal property, and that office space and related fixed improvements necessary
to the operation and administration of the authorized facility.
4. Inventory or supplies shall not be eligible for abatement.
Historic For historic property located in the City of Paris Historic District, see Chapter 30, Article IV of the City of Paris
PFopcqy Code of Ordinances — Tax Exemption for Historically Significant Sites. Contact the City of Paris, Community
2
Value and
Term of
Abatement
Abatement
Evaluation
Criteria
Economic
Qualification
Taxability
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
_ information on these and other programs offered
e ...p grams d b�� the City of Paris.
1. DeveTh g vternmg b dinesf of theocal .m., --
Taxing Jurisdictions will decide whether to grant a tax abatement to an
applicant, and the amount, if any, of such abatement, on a case-by-case basis and in accordance with these
Policies, Criteria and Guidelines.
2. The term of abatements granted under any agreement may not exceed that permitted by applicable
state law.
3. The amount of the abatement shall be based upon a percentage (0 to 100%) of all or a portion of the eligible
property within the authorized facility.
4. Abatements may only be granted for the additional value of eligible real and personal property improvements
made pursuant to and listed in the agreement between the Taxing Jurisdictions and property owner and/or
lessee, subject to such limitations as the Taxing Jurisdictions may require.
5. Real property tax abatement may be granted only to the extent that its value for each year of the agreement
exceeds its value for the year in which the agreement is executed.
6. If a modernization project includes the replacement of improvements within an authorized facility, the value
eligible for abatement shall be the value• of the new.umt(s), less the value of the rlaced
The criteria used to evaluate a proposed project application for abatement includes, but is not limited to:
1. The dollar amount of the increase in the tax roll.
2. The number of jobs created or retained by the employer involved.
3. The possible effect on attracting other taxable improvements into the Taxing Jurisdictions,
4. The nature of and overall effect on the Taxing Jurisdictions.
5. The effect on the safety, health, and morals of the Taxing Jurisdictions' residents.
6. Any substantial long-term adverse effect on the provision of the Taxing Jurisdictions' services or tax bases.
7. Meeting all relevant zoning requirements.
8. Consistent with the comprehensive plan of the City of Paris and County of Lamar.
9. The types and cost of public improvements and services (water and sewer main extensions, streets and roads,
etc.) required of the Taxing Jurisdictions.
10 The hues and values of public improvements to be f mished by the applicant.
To be eligible to receive tax abatement, the planned improvements:
1. Must be reasonably expected to increase the appraised value of the property.
2. Must be expected to prevent the loss of employment, or assist in the retention or creation of jobs in the Taxing
Jurisdictions during the term of the agreement.
3. Should not be expected to solely or primarily have the effect of merely transferring existing employment from
one part of the Taxing Jurisdictions to another without demonstration of increased future investment (dollars
or jobs) or unusual circumstances whereby without such a move employment is likely to be reduced.
4. Must be necessary because capacity cannot be provided efficiently utilizing existing improved property when
reasonable allowance is made for necessary improvements or relevant t,ovemmental actions.
During the term of the agreement, taxes shall be payable as follows:
1. The base year of eligible property as determined each year by the Lamar County Appraisal District, shall be
fully taxable.
2. The additional value of eligible property above the base year value shall be taxable in the manner described in
the agreement.
3. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the
real and personal property comprising the reinvestment zone.
4. Each year, the employer, company or individual receiving an abatement pursuant to an agreement shall furnish
the assessor with such information as may be necessary to determine the amount of any abatement.
5. Once such value has been established, the Chief Appraiser shall notify the affected Taxing Jurisdictions which
levy taxes on such property and also notify the Paris EDC.
6. The employer, owner or lessee of eligible property requesting tax abatement within a reinvestment zone
shall, prior to the commencement of eligible property improvements, agree to expend a designated sum of
money and to create or retain a certain number ofiobss or annual payroll as fiutkher defined below.
Capital Investoren Payroll and Job Creation Catena
m.. _ .�., ®. ��,� .� .. �_ ��� _ _..
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
__ _. _ ... W -
A tax abatement may be made available to employers who are increasing new capital investment and creating jobs with respect to
an authorized facility located anywhere within the area served by the Taxing Jurisdictions based on the following criteria.
1. To be eligible for any tax abatement, there must be a minimum capital investment in the authorized facility of $1,000,000 and
at least ten (10) new jobs added to the new employer's labor force.
2. Any project with a capital investment of more than twenty-five million dollars ($25,000,000), AND accompanied by a
newly created minimum annual payroll of two and one-half million dollars ($2,500,000), OR creating more than two
hundred twenty-five (225) jobs will be individually negotiated
3. As specified in state law, no abatement will be granted for more than 10 years and the total abatement shall not exceed
100%.
4. A newly created business must be (or will be) located within an enterprise zone or a designated reinvestment zone.
5. The taxing jurisdictions recognize a significant difference in the valuation of real property versus personal property.
Because of depreciation schedules, the abatement of personal property could result in a tax exemption. For this reason, the
abatement schedule for personal property versus real property may be different. Each industrial account is looked at and
valued on an individual basis by the Lamar County Appraisal District (LCAD). The typical depreciation used for
industrial accounts by LCAD is as follows:
a. Computers – 3 year life
b. Furniture & Fixtures –10 year life
c. Vehicles – 7 to 10 year life (depending on type)
d Machinery & Equipment –15 year life (maybe longer or shorter depending on the type)
b. For each abatement request the PEDC will evaluate the equipment (personal property) investment and useful life separate
from the real estate (real property) investment to determine the length of the abatement for each.
7. If personal property should become obsolete and be replaced while under an abatement agreement, the replacement
personal property is not eligible for abatement.
8. The charts below provide capital investment guidelines to qualify for tax abatement and the related schedule and
percentage of abatement.
For Capital Investment ($1M minimum investment AND 10 iobs for new
Amount of Investment
Year Year 2 Year 4 Year 5 Year 6' Year
-Year 3
1 i
150%
m �o
$5 000 001 o $20,000,000 1
80 % 70'/0 �� b0 /0 50 /o 40 /0
30 /o
0
20%
20,000,001 to $25,000 000
■
90% ! 80% 70% 60% T 50% 4D%
-- — . �..._ .v. _ a
30%
$25,000,001 and Above
....... ... — p y
For ro acts with ca ual investment above $25MAND $2-5M in new annual a roll OR
p � p
creating more than 225 new jobs, the term and percentage of the abatement are both
net otiabl but cannot exceed 10 years or 100%
f
9. An additional 20% abatement for new job creation is available based on the following requirements:
a. A project that creates a minimum of 10 new jobs.
b. The new job wages are equal to or greater than the current County average wage for all private sector jobs excluding
retail trade and accommodation and food services ($41,158 annually for 2013. Source: Texas Workforce Commission
L—..— _ ..........
4
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
via www,tracer2 com. (Note: Ais represents 547 companies, 10,470 jobs and 56% of all private
sector
e
„n vate sector employment in ;
Lamar County.)
c. The taxing jurisdictions and the company must agree to include measuring, tracldng and annual reporting of the net
job increases (existing jobs plus new jobs) for the entire term of the abatement agreement.
Net New Jobs �I Year YeExsstin Jobs
For Net New Jobs ew Job Creation and Retention of E
ar 3 Year 4 Year 5 Year b Year 7
E. 10 new jobs --- ' *- um, *20% 20% 20/9 20% 20% 20% 20%
2. New job wages = or > average annual
wages for private sector jobs in Lamar
i
County. (Excluding retail, accommodations, food ,
service. See Item 9.b. above.)
3. Agree to maintain existing base and new
jobs during the entire term of agreement.
4. *Year 1 cannot exceed 100%.
VI. Tax Abatement for Existing Employers Regarding Real or Personal Property.
The Taxing Jurisdictions recognize the value of its existing employers to the well-being of the City
and County. The Taxing Jurisdictions desire to encourage existing employers to remain in the
Taxing Jurisdictions and to improve their respective businesses and industries, as well as their
profitability.
Accordingly, if an existing employer (as opposed to a newly created business or industry moving
into the Taxing Jurisdictions), owns or leases an authorized facility and has plans to improve such
property by constructing new improvements on its real property and/or adding new personal
property to its authorized facility which qualify for tax abatement under these Policies, Criteria and
Guidelines, such employer may be eligible for tax abatement with respect to such improvements to
its real property or its new personal property under the provisions of Article V above, even if no
new jobs or newly created minimum annual payroll are created.
In projects involving existing employers, the criteria for tax abatements for improvements to real
property and for new personal property at authorized facilities set forth in Article V above shall be
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
waived, provided state law is fully complied with.
The local taxing jurisdictions encourage existing employers to retain as many jobs and as much
existing annual payroll as is economically feasible for the existing employer, while remaining
competitive in its industry.
VII. Greenfield projects
In order to encourage the development of greenfield properties and also to be able to expedite
certain new projects, the criteria for tax abatements for improvements to real property and for new
personal property at authorized facilities set forth in Article V above shall be waived for projects
exclusively involving greenfield properties, provided state law is fully complied with.
VII�.I App4cj#qn Process
........... _e,......_.... _ _.._...._ __,
- A lication Process ..:_.................
Eli esent o._�_._.....__�.n�._ :.n,�.�......
g ty y pr r. potential owner of taxable property in the Taxing Jurisdictions may request tax
abatement by filing a written request with the City Manager or County Judge, with a copy of the
api)hcation
forwarded by the aMilicant to the Executive Director of the Paris EDC.
Form i The application shall consist of a completed application form accompanied by the following:
1.
A general description of the improvements to be undertaken together with the pro j e cted new
value to the property and the type of business operation proposed.
2.
A detailed, descriptive list of the improvements for which abatement is requested.
3.
A list of the kind, number, and location of all proposed improvements of the property.
4.
A list of the number and type of jobs created, including information pertaining to anticipated
job transfers (if any).
5.
A metes and bounds description and plat of the proposed reinvestment zone that shows all
roadways within 200 feet of the reinvestment zone and all existing zoning and land uses
within 200 feet of the reinvestment zone.
6.
A time schedule for undertaking and completing the proposed improvements.
7.
The type and value of any additional economic development incentives requested
8.
tion about the proposed project as may be required by the Taxing
Any other Drina Pop
Jurisdictions or as deemed desirable bti the Tahug-Jurisdicti
1 111-.................. ons.
Review 1.
All applications will be initially reviewed by the PEDC executive director.
Process 2.
An initial project briefing meeting will be conducted between the company's representatives,
the PEDC executive director, the city manager, and the county judge.
3.
The PEDC executive director will evaluate the request for tax abatement in accordance with
these criteria and guidelines and will make his/her recommendation to the Paris City Council
and Lamar County Commissioners Court for their review and possible approval.
4.
After the Paris City Council has been briefed on the proposed tax abatement offer and they
have directed the PEDC executive director to move forward, the Paris City Attorney will
draft the initial tax abatement agreement for review by the PEDC Board and representatives
of each Taxing Jurisdiction.
5.
Electronic versions of the City's abatement agreement will be provided to the County so all
agreements have consistent language, terms and conditions.
6.
Following review of the draft agreement, it will be sent to the applicant's legal counsel for
review and comment. Any changes requested by the tax abatement applicant will be
reviewed by the City Attorney.
7.
Once the Agreement is finalized, it will be placed on the PEDC Agenda for board
recommendation.
S.
Once the Tax Abatement Agreement has been acted on by the PEDC Board, the Agreement
shall be forwarded to the Paris City Council and Lamar County Commissioner's Court for
1
fina consideration and action i
_�
Public Hearing 1.
���
The Taxing Jurisdictions will comply with certainpublic
public notices and hearings required as
mandated b� state law under the Property Redevelopment and Tax Abatement Act irnor to
-
6
Proposed
Agreements
Decided on
Individual
Basis
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
9
the designation of a reinvestment zone and execution of a tax abatement agreement.
The lead Taxing Jurisdiction (typically the City of Paris) may adopt an ordinance designating
a tax abatement reinvestment zone only after notice of a public hearing has been published at
least seven (7) days before the date of the hearing, and all other procedural requirements of
Chaliter 312 of the Texas Tax Code have been satisfied.
In order to enter into an agreement, the Taxing Jurisdictions must find that:
1. The terms of the proposed agreement comply with these Policies, Criteria and
Guidelines.
2. There will be no substantial adverse effect on the provision of Taxing Jurisdictions' services
or tax base.
3. That the planned use of the property will not constitute a hazard to public safety, health or
morals.
4. Incident to approval of any ordinance designating a reinvestment zone, the Taxing
Jurisdictions shall find that the improvements sought are feasible and practical and would be
a benefit to the land to be included in the reinvestment zone and to the Taxing Jurisdictions
after the expiration of the a Bement.
Requests for variance from the provisions of these Policies, Criteria and Guidelines may be made
in writing to the Taxing Jurisdictions; provided, however, that in no event shall the term of any
abatement exceed the period authorized by applicable state law. Such request shall include a
complete description of the circumstances requiring a variance. Approval of a request for
variance shall require the affirmative vote of three-fourths (3/4) of the members of each of the
Taxin�i Jurisdictions' �ryoverninv body.
...... .............................. --- wm
The adoption of these Policies, Criteria and Guidelines by the Taxing Jurisdictions does not limit
the discretion of the Taxing Jurisdictions' governing bodies to decide whether to enter into a
specific tax abatement agreement. Nor does it limit their discretion to delegate to their employees
the authority to determine whether or not the Taxing Jurisdiction should consider a particular
application or request for tax abatement, or create any property, contract, or other legal right in any
person or entity to have the Taxing Jurisdiction consider or grant a specified application or request
for tax abatement.
VIII. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terms and conditions to be included in any formal tax abatement
legal agreement.
DL Amendments to Policies, Criteria and Guidelines
These Policies, Criteria and Guidelines are effective for a two (2) year period from the date of their
adoption, unless amended earlier by the affirmative vote of three-fourths (3/4) of the members of
each governing body (City, County).
For a tax abatement application or additional information contact:
Paris Economic Development Corporation
1125 Bonham Street
Paris, Texas 75460
Phone: 903-784-6964
Fax: 903-784-2503
Website: wvaw_,_ L)qj ste asusc.,coin
Email: [ sedc(&paristexasusa.co
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FORTAXABATEMENT
APPENDIX A
Ition
Abatement or Tax
The fall or pa—r-ti'a"1--e'xe-m—p-ti'on from ad valorem taxes of certain real and tangible personal. i
Abatement ement
in a Reinvestment Zone,desigua� for economic,developme
or
The written legal agreement for tax abatement between a property owner and/or lessee and the
reements
I :C"itv pfPar,is,,Lamar County and Pans Junior -College.
Authorized
A facility may be eligible for abatement if it is a facility used for manufacturing, research,
Commercial or
regional distribution, regional services, regional tourist entertainment, other basic industry, or
Industrial Facility
any primary jobs mating industry (see definitions below). All authorized facility definitions
include buildings and structures, including fixed machinery and equipment used in operating
the facility,
i
Authorized
oize(T—
. . . ............ .
The City Council of the City of Paris may also designate areas of the City where residential
Residential Facility
properties may be considered for abatement of City taxes only. The City of Paris will approve
their residential abatement policies,criteria and guidelines separate from these policies.
. . .... ....
. .. - . I - - , , , - I
-4 "
�utlari�j—
Manufacturing_
The purpose �which is or ill be the manufacture. of tangible goods
or materials or the
Facility
processing of such goods or materials by physical or chemical change. Facilities
primarily engaged in assembling component parts of manufactured products are also
. . . ..... . .. .........
considered 1��c facilities. . .. ..... . . .
Regional
Used primarily to receive, store, service, or distribute goods or materials where a majority of
Distribution Facility
the goods or services are distributed to points at least 100 miles from its location in the Taxing
Jurisdictions of Paris and Lamar County.
Regional Tourist
Used in providing amusement/cirtcrtairiment through the admission of the general public where
Entertainment
the majority of users reside at least 100 miles from the Taxing Jurisdictions and where the
Facility
majority of users are likely to stay in the Taxing Jurisdictions for more than one day and will
therefore likely utilize local restaurants and hotel/motel accommodations.
. ........ .
Research Fac—Jh—ty---]'
Used primarily for researchorexperimentation to improve or develop new tangible goods or
I materials or to improve or lqpffie rodu onp
prove p_ p� .
. .............
Other Basic or
1 11--, 1-- I'll, -. dev� . . .....
Not elsewhere described, used for the production of products or services which result in the
Service Industry
g creation of now jobs and bring new wealth into the Taxing Jurisdictions (e.g. healthcare-
related mou�
J� I'll
Primary Jobs
- --1dL -
Any industry creating "primary jobs" defined as a job that is available at a company for which
Creating Industry
a majority of the products or services of that company are ultimately exported to regional,
statewide, national, or international markets infusiq rk�,Oollars, into the local economy.
. . ...................... . . ...... . . ............... ....... . ...... .. . ... .. .... .
YearBase Value
The assessed value of eligible property as of January 1, preceding the date of execution of the
agreement plus the agreed upon value of eligible property improvements made after January
1, but before the execution of the agreement. The Base Year Value may be adjusted either up
or down from y�w to year Appy*a! District.
r as per renditions by the Lamar County
Employer
-` .......... . -'--
;the owner or lessee of property, who is applying for tax abatement and who will provide jobs
and capital investment within the Reinvestment Zone or within the Enterprise Zone.
ri
-decided" 'e,
iiei�eni Zone
An area where the....
Ju�� h- av e to influence u
n"c' e development patterns and
attract major investments that will contribute to the development of the area through the use of
tax abatement for specified improvements. These statues are found in Chapter 312 of the
Texas Tax Code.
Enter r ' Zone
......... .... .
An Elm of lan�*nated as such under Clmpter 2303 of the Texas Government Code.
, ,
i"week '-for , "a
Job or Jobs
A "job" is when an individual works 40 hours per ne m" pl-o"y—er,—,a-n,-d-in---th-e--po—siti-on
the individual is provided the benefits normally offered by the employer, such as health
insurance, vacation and some form of retirement benefit A job is not a position filled for the
employer as a worker or employee of an employment agency or employment service. "Jobs"
also includes "Full-time E,,uivalent Jobs" defined below.
Full-time Equivalent
.............. . ....... .
The intention of the governing bodies is to provide a company the maximum flexibility in running
(FM) Jobs
their business and making business decisions, especially related to staffing. The following
definition of FTE will be reflected in all incentive agreements. An FTE is:
1. An individual working 40 hours per week in ajob defined above.
2. A number o jobs where the hours worked in each suchjob is less than 40 hours Baer..... . .. . .....
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Y employer g........-. �A...
week, made available b one em to er and added to ether to total 40 hours per week For
example, fourteen (14) part-time jobs made available by one employer where all such part-
time jobs added together require a total of 380 hours of work per week (but no such part-
time job requires 40 hours of work or more per week), will equal nine and one-half (9.5)
FTE jobs (380 hours divided by 40 hours per week equals 9.5).
3 FTEJ94o not quire the employee to receive benefits from the emi aloyer.
Modem�zation The replacement and upgrading of existing facilities, which increases the productive input
or
output, updates the technology, or substantially lowers the unit cost of operation. Modernization
may result from the construction, alteration or installation of buildings, structures, fixed
machinery or equipment, but shall not be for the purpose of reconditioning, refurbishing,
relsuzn, or deferred maintenance.
Personal Pro Machin la
Property Machinery, equipment, tools, shelving or materials eligible under applicable law for tax
a abatement, which can be removed from an authorized facili r
Proeri�� Real r,�qy or Personal Proper defined herein that is eligible for tax abatement.
Real Property The land within an Enterprise Zone or a Reinvestment Zonetogether with all "
, g improvements
and fixtures constructed or otherwise situated thereon.
-Tax Abatement The Tax Abatement Advisory Com m .- - - _ . h
" ry mmittee will be convened from time to time by the Paris
Advisory Committee Economic Development Corporation to study, review and recommend tax abatements to the
applicable Taxing Jurisdictions in the City of Paris and Lamar County, Texas. The Tax
Abatement Advisory Committee will be composed of one person from each of the Taxing
Jurisdictions: the City of Paris (the City Manager or designee), the County of Lamar (the
County Judge or designee), Paris Junior College (the President or designee), the Chief
Appraiser of the Lamar County Appraisal District, and the Executive Director of the Paris
Economic Development Corporation. Recommendations from the Tax Abatement Advisory
Committee shall be decided by majority vote of the representatives from the three taxing
entities referenced above.
9
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
APPENDIX B
Abatement Agreement Terms and Conditions
After approval, the Taxing Jurisdictions shall formally pass an order or resolution and authorize the
execution of an agreement with the owner and/or lessee of the authorized facility, which shall
include, but not be limited to the following terms and conditions:
Contract Terms & Conditions
Project The following project specifics will be included:
Description 1. The base year value.
2. Percent of increased value to be abated each year.
3. The commencement date and the termination date of abatement.
4. Amount of investment and average number of jobs involved during the term of the
agreement.
5. The proposed use of the authorized facility, nature of construction, time schedule, plat,
property description, and improvement list, as provided in the application.
6. A listing of the kind, member, location, and costs of all proposed improvements of the
property.
7. A statement limiting the uses of the property consistent with the general purpose of
encouraging development or redevelopment of the reinvestment zone during the period that
property tax abatement is in effect.
8. That access to the project is provided to allow for the inspection by Taxing Jurisdictions'
inspectors and officials in order to ensure that the improvements or repairs are made
according to the specifications and conditions of the agreement.
9. That property tax revenue lost as a result of the tax abatement agreement will be recaptured
by the Taxing Jurisdictions if the owner of the property fails to make the improvements or
repairs as provided by the agreement.
10. Each term agreed to by the owner of the property.
11. A requirement that the owner of the property shall certify annually to the Taxing Jurisdictions
that the owner is in compliance with each applicable term of the agreement.
12. Contractual obligations in the event of default, violation of terms or conditions, delinquent
taxes, recapture, administration and assignment, or other provisions that may be required by
state law, or in the discretion of the Taxing Jurisdictions' governing body.
13. That the Taxing Jurisdictions may cancel or modify the agreement if the property owner
fails to comph with the agreement.
Default If the Taxing Jurisdictions determine that the person or entity receiving an abatement is in default
according to the terms and conditions of its agreement, the Taxing Jurisdictions shall notify the
company or individual in writing at the address stated in the agreement, and if such default is not
cured within a reasonable time specified in such notice ("cure period"), then the agreement may
be modified or terminated without further notice. In the event the company or individual allows
its ad valorem taxes owed to the Taxing Jurisdictions to become delinquent and fails to timely
and properly follow the legal procedures for their protest and/or contest, or violates any of the
terms and conditions of the agreement and fails to cure during the cure period, the agreement
then may be modified or terminated without further notice, and the agreement may provide a
formula for recapture of all or part of the taxes abated. At any time before the expiration, any tax
abatement agreement may be terminated by mutual consent of all parties involved in the same
manner that the agreement was executed
., _...�
Confidentiality Information that is provided to a Taxing Jurisdiction in connection with an application or request
of Proprietary for tax abatement under these Policies, Criteria and Guidelines, and that describes the specific
Information processes or business activities to be conducted or the equipment or other property to be located
on the property for which tax abatement is sought is confidential and not subject to public
disclosure until the agreement is executed. Such information in the custody of the Taxing
Jurisdictions after the aeement is executed ise not confidential hereunder.
Inspections The agroament shall stipulate that employees and/ or desienated representatives of the Taxine
10
Modifications
of Agreement
Assignment
(Updated 01-10-2022)
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Jurisdictions will have access to the reinvestment zone during the term of the agreement to inspect
the authorized facility to determine if the terms and conditions of the agreement are being met.
All inspections will be made only after the giving of at least twenty-four (24) hours' prior
notice and will only be conducted in such a manner as to not unreasonably interfere
with the construction and/or operation of the authorized facility. All inspections will be made
with one or more representatives of the company or individual and in accordance with its safety
standards. Upon completion of construction, the Taxing Jurisdictions shall annually evaluate
each authorized facility receiving abatement to ensure compliance with the agreement and report
possible violations of the agreement to the Taxm Jurisdictions goverrnng bodies
. �.
At any time before the expiration of an agreement made under these Policies, Criteria and
Guidelines, the agreement may be modified by the parties to the agreement to include other
provisions that could have been included in the original agreement or to delete provisions that
were contained in the original agreement. The modification must be made by the same
procedure by which the original agreement was approved and executed. The original agreement,
however, may not be modified to extend the term of the agreement or the term of the abatement
!„ ted therein beyond the time ermrtted by State law.
__ �...�.
i An agreement may be assigned to a new owner or lessee of the authorized facility only with the
prior written consent of the Taxing Jurisdictions. Any assignment shall provide that the assignee
shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon
the same terms and conditions as set out in the agreement, and the Taxing Jurisdictions' approval
shall be subject to the determination of the financial capability of such assignee. Any assignment
of an agreement shall be to an entity that contemplates the same improvements or repairs to the
property, except to the extent such improvements or repairs have been completed. No assignment
shall be approved if the assignor or the assignee is indebted to the Taxing Jurisdictions for ad
valorem taxes or other obligations, or if any event of default under the agreement remains
uncured.
Administration, 1. Each Taxing Jurisdiction shall be responsible for the administration, review, and momtormg
Contract of tax abatement agreements authorized by them Taxing Jurisdictions under these Policies,
Review, Criteria and Guidelines. These responsibilities shall include annually verifying participants in
Monitoring and tax abatement agreements are in full compliance with the terms of the agreement, including
Reporting completion and submission of all required documents in a timely manner.
2. The Paris City Attorney shall expeditiously advise the Taxing Jurisdictions in writing of any
instances of contract non-compliance by tax abatement participants. In addition, the Paris City
Attorney shall, on an annual basis, conduct a performance review of the activities of each tax
abatement participant and report the findings of such review to the leadership and governing
bodies of each taxing entity.
3. The Taxing Jurisdictions' governing bodies shall retain the right to independently review and
audit the activities of tax abatement participants, and shall be responsible for enforcement of
the terms of any tax abatement agreement authorized hereunder.
4. Annually the Paris City Attorney shall report to each of the governing bodies on its
momtong and compliance activities and the status of all existing abatement agreements.
11
Exhibit 5
FORM: Certificate of Compliance
19
EXHIBIT 5
Annual Certificate of Compliance/Non-Compliance Year —20_
Pursuant to the Tax Abatement Agreement ("the Agreement")
Between the City of Paris, Texas
And Ametsa Packaging, LLC
Dated April 24, 2023
THE STATE OF TEXAS §
COUNTY OF LAMAR §
INITIAL WHERE APPROPRIATE:
Ametsa Packaging, LLC (the "Company") hereby certifies that:
(1) All ad valorem taxes have been paid to City and all other taxing entities.
(2) In . the Company maintained no fewer than fifteen (15) full-time
employees to operate the Paris Facility. The total number of full-time
employees working at the Facility as of the date of this report is
(3) The Company has continuously operated the Property and
Improvements described in the Agreement in accordance with the
terms thereof.
(4) The Company submits herewith and attaches hereto copies of the
Employer Reference summary page of its Texas Workforce
Commission Quarterly Reports for the Paris Facility for each quarter of
(year preceding the date of the certification).
(6) All other terms and conditions of this Agreement have been complied
with.
Ametsa Packaging, LLC certifies that the company is not in compliance with its
agreement with City of Paris for the year
Please Circle the number of the item(s) above in which you believe that the Company
has failed to comply and state in what way compliance with the term or terms were
not met. Attach additional pages if necessary.
VERIFICATION
STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned notary, on this day personally appeared
J the affiant, a person whose identity is known to me. After I administered
an oath to affiant, affiant testified:
M name is
y I am capable of making this verification. I have read
mm.,.. ..�
the foregoing Certificate of Compliance/Non-Compliance. The facts stated in it are within
my personal knowledge and are true and correct, and I further certify that the Employer
Reference Summary pages are true and correct copies of those reports filed with the Texas
Workforce Commission."
Signature of Company Representative
Position/Title
Sworn to and subscribed before me this the _ day of,.,,,,,,a 20_.
Notary Public, State of Texas
Exhibit 6
FORM: Certificate of Completion
20
CERTIFICATE OF COMPLETION
STATE OF TEXAS §
COUNTY OF LAMAR §
CITY OF PARIS §
The City of Paris, Texas has executed and delivered a Tax Abatement Agreement (the
"Agreement") dated April 24, 2023, with AMETSA PACKAGING, LLC, for certain
improvements and equipment (collectively, the "Improvements") to be installed on property
located in Paris, Lamar County, Texas, said Improvements described in Exhibit A attached
hereto, which property is located within an Enterprise Zone established by the United States
Census in 2010.
Based on information provided by Company and verified by the City, the City of Paris
herein verifies that the Improvements agreed to be installed and used in the calendar year
2023 have in fact been completed as provided for in the Agreement and that the Company
has complied with all other terms of the Agreement including those related to employment
levels.
NOW, THEREFORE, the City of Paris authorizes that the property described in
Exhi]Li—tA attached hereto shall receive a tax abatement during each year through the end of
the term the Tax Abatement Agreement equal to 100% in years 2024 and 2025; 75% in years
2026 and 2027; 50% in years 2028 and 2029; and 25% in the year 2030, of the taxes
assessed upon the increased value of the real and personal property of the Company located
in Paris, Texas, over the value at which the property was last appraised on January 1, 2023,
which is the year in which the Tax Abatement Agreement was executed, as recited in the
Agreement. The tax abatement will extend for a duration of seven (7) years, with the tax
abatement beginning January 1, 2024, and ending December 31, 2030.
APPROVED this day of _.
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney