08 - 5 In 5 TaxAbatement Agreement with P-Town Property HoldingsItem No. 8
jVlemorandum
TO: Mayor, Mayor Pro Tem and City Council
Grayson Path, City Manager
FROM: Andrew Mack, AICP Director Planning & Community Development
SUBJECT: Discuss and Act Upon a 5 In 5 Tax Abatement Agreement with P -Town Property Holdings
DATE: June 12, 2023
BACKGROUND & DISCUSSION
Attached please find the draft resolution and agreement between the City and P -Town Property Holdings
for the construction of 3 new Tri-Plex and 2 new Duplex homes. These are all on private parcels which
were not part of a prior tax sale, however they are still eligible for a City property tax abatement through
the program. The properties are in the process of being replatted and received a front yard setback variance
by the Board of Adjustment on 6/5/23. This agreement will be through the 5 In 5 Infill Housing Program
Area for the following parcels:
Parcel No. LCAD # Address
l 18257 500 Block of 20th NE
------------
218256 410 NE 20th St
All of the homes are planned for construction this year, but could be phased. Attached are site plans, floor
plans and elevation drawings of the new residential dwellings proposed to be constructed on all the
properties. Richardson Custom Homes of Paris, Texas is planned to be the General Contractor for the
projects. The agreement spells out all the requirements under the 5 In 5 Infill Development Program
Guidelines. Mr. Tim Risinger plans to attend the meeting on Monday night to present their building plans
under the agreement to the City Council.
Recommendation
Approval of the 5 In 5 Infill Development Agreement with P -Town Property Holdings for the construction
of 3 new Tri -flex and 2 new Duplex homes in the 5 In 5 Area is recommended.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT
AGREEMENT AND TAX ABATEMENT AGREEMENT WITH P -TOWN
PROPERTY HOLDINGS 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, the City Council of the City of Paris, Texas has been presented a proposed
agreement by and between the City and P -Town Property Holdings ("Owner") providing for
an Economic Development Agreement and Tax Abatement Agreement (the "Agreement")
under the 5 in 5 Housing Infill Development Program (the "Program") adopted by the City
Council on January 10, 2022 and amended by Resolution 2022-055 on July 25, 2022, a copy
of which Agreement is attached hereto as Exb1bilt A and incorporated herein by reference;
and,
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 eligible
for the Residential Tax Abatement Program; and
WHEREAS, the properties the subject of the Agreement and the improvements to be
made thereon are situated within Reinvestment Zone 2020-1 and lie within the Program
Area described in the Guidelines and Criteria for the Program; and
WHEREAS, the contemplated use of the property, and the improvements to be
installed thereon in the amounts set forth in the Agreement and the other terms therein are
consistent with encouraging development of said reinvestment zone in accordance with the
purposes for which it was created and are in compliance with the City's policy of tax
abatement incentives adopted by the City adopted on January 10, 2022 and all applicable
laws;
WHEREAS, the City Council also wishes to offer the additional development
incentives set forth in the Agreement pursuant to Chapter 380 of the Texas Local
Government Code, and
WHEREAS, the City Council finds that the incentives offered in the Agreement will
encourage development in the Program Area described in Resolution 2022-003 through the
provision of much needed housing stock for the growing labor force in the City; and
WHEREAS, upon review and consideration of the Agreement, and all matters
attendant and related thereto, the City Council finds that the terms and conditions therein
meet the guidelines and criteria for tax abatement and other incentives set forth in the
Program and should be approved, and that the Mayor should be authorized to execute it on
behalf of the City of Paris, Texas.
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 and incorporated herein for all purposes.
Section 2. That the properties the subject of the Economic Development
Agreement and Tax Abatement Agreement between the City and P -Town Property Holdings
("Owner"), attached hereto as Exhibit A and incorporated herein by reference, lie within
Reinvestment Zone 2020-1 and the Program Area described in Resolution 2022-055, to wit:
• LCAD-18257, 500 Block of NE 29th St., City of Paris Lot 2-0, Block 258-A
• LCAD- 18256,410 NE 20th St., City of Paris Lot 2-A, Block 258-A
Section 3. That the terms of the Agreement meet the City's guidelines and criteria
for tax abatement and other incentives adopted by the City of Paris by Resolution No. 2022-
055 and will lead to the economic development of the Reinvestment Zone 2020-1 and
Program Area.
Section 4. 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 5. 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 6. 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 7. 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 12th day of June, 2023.
Reginald B. Hughes, 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 P -TOWN PROPERTY
HOLDINGS (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, by Resolution 2022-003, City Council designated an area within
Reinvestment Zone 2020-1 as being eligible for the Program; and
WHEREAS, on July 25, 2022, City Council, by Resolution 2022-055, revised the
guidelines and criteria for the Program;
WHEREAS, on April 10, 2023, the City Council approved resolution 2023-018 re-
authorizing the City to become eligible to participate in residential tax abatements and approving
guidelines and criteria for the residential tax abatement program; and
WHEREAS, the Program has additional criteria and guidelines for participation in said
Program, including criteria and guidelines for eligibility for residential tax abatements; and
WHEREAS, Owner has submitted an application for a 5 In 5 Housing Infill
Development project to construct three (3) triplexes and (2) duplexes for a total of thirteen (13)
new residential units at the properties described herein below in Paris, Texas (hereinafter
"Improvements"); and
WHEREAS, city staff has reviewed the application and the location of the above
described residential Improvements and has determined that the property is located within the
boundaries of the defined geographic area and meets the requirements for Improvements set
forth in the Guidelines and Criteria for the 5 In 5 Housing Infill Development Program as set
forth in City Resolution No. 2022-055.
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
2.2 This Agreement comprises two component parts, including an economic
development agreement pursuant to Texas Government Code Chapter 380 and a residential tax
abatement agreement pursuant to Texas Tax Code Section 312.
HI.
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 Properties located in Paris, Lamar County, Texas more fully
described in Exhibit 1 attached hereto and incorporated herein by reference, which Properties
are within Reinvestment Zone No. 2020-1 and within the area set forth in the Program:
City of Paris, Block 258-A, Lot 2-13 (to be addressed—in the 500 Block of NE 20th
St.), LCAD #18257
• 410 NE 20'' St., City of Paris Block 258-A, Lot 2-A, LCAD #18256
B. Consideration --Improvements
3.2 The Improvements to be completed consist of constructing three (3) triplexes and
two (2) duplexes on the above described Properties and as more fully described in the application
for the Program attached hereto and incorporated herein as Exhibit 1. Said Improvements must
be completed within the term of the Economic Development Agreement, set herein to expire on
June 11, 2028.
3.3 The total estimated value of the Improvements to be constructed on the above -
referenced parcels is SEVEN HUNDRED FIFTY THOUSAND AND NO/100 ($750,000.00).
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 twelve (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 June 11, 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 3.1 for any other purpose
other than to construct the Irnprovements 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 June 12,
2023 and shall continue for a period of five (5) years ending on June 11, 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 seventy-five percent (75%) for each dwelling unit constructed
pursuant to this Agreement.
3
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
seventy-five percent (75%) 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—Texas Tax Code Chapter
312
A. Term
5.1 The term of this Tax Abatement Agreement shall commence on June 12, 2023. It is
the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on
each separate structure constructed as it is completed and issued a Certificate of Completion by
City. Consequently, each residential structure constructed and completed shall have its own five
(5) year abatement period. The abatement period for each constructed and completed residential
structure shall commence on January 1 of the year following City's issuance of a Certificate of
Completion on said structure and end on the fifth (5t') 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
5.2 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 maintenance and operations (M & O) 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 3.1 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
4
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.
5.3 This abatement is granted in accordance with the City's guidelines and criteria for
the Program, a copy of which is attached hereto as Exhibit 2, provided, however, that in the
event of any conflict between this Agreement Exhibit 2, this Agreement shall control.
5.4 Upon receipt of the documentation set forth in Article III and in Section 6.6
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
5.5 If (a) the Improvements (all thirteen residential 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.
5.6 As damages in the event of default, and in accordance with the requirements of
Section 312.205(a)(4) of the Tax Code of the State of Texas, all taxes which otherwise would
have been paid to the City without the benefit of abatement, including taxes on those dwelling
units constructed and completed according to the terms of this Agreement, together with interest
to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the
Property Tax Code of the State of Texas, with all penalties and attorney's fees 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 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.
6.5 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 is 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;
6
(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 12th day of June 2023, authorizing the Mayor 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.
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 Owner 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:
P -Town Property Holdings
Attn: Tim Risinger
550 CR 33970
Powderly, Texas 75461
7°
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a coy , 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
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, 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 that it (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 12fl' day of June, 2023.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
THE CITY OF PARIS, TEXAS
LI -A
Reginald B. Hughes, Mayor
P -TOWN PROPERTY HOLDINGS
By:_..m�_.............. �_.......M..._�......
Tim Risinger:
Title:
10
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared Reginald B.
Hughes, Mayor, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated.
Given under my hand and seal of office this day of June, 2023.
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared Tim Risinger,
m. of P -Town Property Holdings, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he executed the same for
the purposes and consideration therein expressed, and in the capacity therein stated.
y day of June, 2023.
Given under m and an seal o office this „
Notary Public, State of Texas
11
Exhibit 1
M
CITY OF PARIS, TEXAS
APPLICATION FOR RESIDENTIAL TAX ABATEMENT -5 In 5 Infill Housing Program
Property Owner; ... ........ ..
� ) 1� . i �4' �: . .. ...
v",
Name Current: if � �' I
amePlanned*:
('11)o ybu PIAI'l to e-assigri to A buyer upon,,�corn?letion? 'i es No
X'J
Mailing Address: �j) r,f
.. . ........ ...... . .. . . . 1- 1 11 1 /1,
Telephone Number: 'f 0 . . .. .....
.........
Builder qr, Contapi, (if different than current/planned owner):
Name:
. . . . . ......... . ..............
Mailing Address"[0.
State GC License N
nf,, email
Telephone Number: � L141,11"I'll. /z, . . ...... �/
.. .. . ...... . . .. .............. .............. -
Property Parcel(s) Proposed For 5 In 5 Agreement:
(Please submit an attached list of addresses and/or LOAD Ws on Excel Spreadsheet, if possible)
No. LCAD Address Lot,-,/,,,,, Blk. Addition
`7
. . . .... .
4--
17,
2.
. . ...........
3. -------
4. . ..... . .
5.
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— 2F3F_Quad—
Ng
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: S
Pa �e' of 7
PrcettyAWISS 410 20th Sf NE
Oty Parts
County
Stale Tx ZOG011e 75460
Form SKT.8L0SKI 'TOTAL" appraisal software by a 12 mage. mc. 1-880-ALAMODE
2®'
20,
zo
Car Carport
� 2
Car Carport
Cq
6'
6'
26
t Patio
Patio -`-
26'
®�
c'
`90
Utility
Utility
Bedroom
Bedroom
Kitchen
Kitchen
CIO Bath
Bath CIO
N
w
M
Dining
Dining
Bath CIO
CIO Bath
Living
Living
Bedroom
Bedroom
�r
.�.
Porch
Porch
wor�14
12'
��������� �1dw.
._ 14' ��„
rar swmn..�
Area Gkulatlorta Summar",
Wag Area
Cokulotlon Debtls
First Flwr
800 sq R
26 x 32- 832
22 x 4 - 48
Fira Floor
880 6q R
26 x 32- 832
4-12 = 48
Total Wag Area (Rounded):
1760 Sq it
Nat-0Wne Area
Gamete Patio
24 Sq R
4 x 6 24
2 car Carpet
360 sq R
20- 38. 360
Open Porch
s6 Sq R
4 x 14 = 56
Open Porch
56 Sq R
14 x 4 - S6
conaete Patio
24 Sq R
4 .6 - 24
2 Car CarW
360 Sq it
20 x 18= 360
Form SKT.8L0SKI 'TOTAL" appraisal software by a 12 mage. mc. 1-880-ALAMODE
Eft
ff
Dim Relkil MUM ILI all E417, Ey
BEFORE rf IS FILED OR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL
SECURITYNIUMBE R OR YOUR DRIVER'S LICENSE N UMBEW'
WARRANTYDEED
(Cash)
THE STATE OF TEXAS § z Q. I
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY Or LAMAR §
THAT, 1,. TI It I ' JNDERSIGNED, KARFNTANNr. JULIAN, a single person, hereinafter
.referred io as "Granto) whether one or inore, for ants in consideration of'lhc'surn of TEN
DOLLARS ('.$1'0.00.) cash. and other loud Z1110 `401.10 1c. C0ll 11,91CILTHlioin hind paid h)' the OranLee
here'i.nnanied, (lie receipt and sufflicioncy of'which is heruby Ibily acknowledged and confessed, have
GRANTED, SOLD and CONVEYED, and by these presents does hereby GRANT, SELL and
"CON ' VEY unto P-TOVM PROPERTY HOLDINGS LLC, a Texas limited fiabUity- company,
herein r6'f&red to as "(h= - tee", the* real property located in Lamar County, Texas, and being
dese'ribed. as fol.lowg:
This.convcyance, however, is made rind accepted Subject to any and all outstanding mineral
interest, restritbons, reservations, aasemeiit%, covenzinis and c0lid1tions, if'airy, relating to the
hereinabove -described properly as (be saly)c arc filed kw record In the CounLy C.icrk's 01'1`ict✓ ol'.
Lapear ('ounly,.Teras, including but nils -11111iLed to the C011.0%V1,11g: I. All eavenlreils, rights of way, set beck fines
and other twarfers appearing oijR&-P1arq(City Hlo&2.78-A, of record in V01111ne 10 Page 13, PIN ReeordsofEinar County,
7'exom 2, Righiof "Deed to the Slate of raxayfrana Enano Rotherum darediuly 24, 1949, of record in Yolume 290 Page
6#,Peed Recor4vqf1.amarCoan(p, Taws, 3. Righloffaylothe City OfParisfroni BMW Ratherafti dated September 12,1952,
of r6cord.in Volume 337 Page 597, DeedRecordy of Ltmnorr Cb"ty, Taim. .
F0 HAVE AND TO HOLD the above described preraises, together v6 th all and singular the
rights and appurtenances thereto in anywise belonging unto the said Grantee, Grantee's heirs,
exceutom, administrators, successors arid/orassieT—s foi-ever.
1%uth Sisson, County Clerk - Lamar County, TX
Dalcd the\LIDay ol'NOVEi MR[,' 1;, 2022.
KAREN ANNE- AU"L"l-A'�/,"
64mm-M&
K0111,411
,11 k
The foregoing instramentwas acknowledged-ljerbremeon the),, _, day of�V�,.-- 2022)
by KAREN ANNE JULIAN.
NOTARY PU LIC, ST = TEXAS
Grantee's Address.
Recording, Return To.-)
DIAMN BRANCH
%IOT,\R'l PUSLIC
STATE OF I'EXAS
MY OOMM. W. 08107126
NOTAW lb 49198D-3
Exhibit 2
RESOLUTION NO. mgg _ na5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS AMENDING THE GUIDELINES AND CRITERIA OF THE 5 IN
5 HOUSING INFILL DEVELOPMENT PROGRAM TO ALLOW
PROPERTIES IMMEDIATELY ADJACENT TO THE PROGRAM AREA
TO BE ELIGIBLE TO PARTICIPATE IN THE PROGRAM AND TO
REVISE APPLICATION FORM; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, on February 10, 2020, the City Council of the City of Paris, Texas passed
Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas
inside the city limits to be eligible for the Residential Tax Abatement Program; and
WHEREAS, after a public hearing on January 10, 2022, the City Council passed
Resolution No. 2022-003 stating its intent to establish the 5 In 5 Housing Infill Development
Program (hereinafter "the Program") including a low cost land sale and residential tax
abatements and adopting guidelines and criteria for the Program; and
WHEREAS, Resolution 2022-003, City Council designated an area within
Reinvestment Zone 2020-1 (the "Program Area'J as being eligible for the Program; and
WHEREAS, on April 12, 2021, the City Council approved resolution 2021-012 re-
authorizing the City to become eligible to participate in residential tax abatements and
approving guidelines and criteria for the residential tax abatement program; and
WHEREAS, the Program has additional criteria and guidelines for participation in
said Program, including criteria and guidelines for eligibility for residential tax abatements;
and
WHEREAS, the Program guidelines require that for a property to be eligible to
participate in the Program, the property must be within the defined Program Area, with an
exception for property transferred via a tax foreclosure process; and
WHEREAS, the City Council wishes to amend the Program guidelines to allow
properties 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:
*JW.. ,
,anHarris, 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
E-:XHISIT-&
In order to further encourage local development, employment, and enhancement of our economy,
to be eligible for incentives in this policy, building materials and fixtures used in the construction
of new dwelling units, where possible, must be purchased locally within the City of Paris.
II. DEFINITION OF TERMS
Act - The Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et.
seq., as amended from time to time.
Agreement - A contractual agreement between an applicant and the City of Paris for the purposes
of a 5 In 5 Housing 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 Immediate l Ad�aaeiat
thereto, whether foreclosed on due to taxes or not. Also, property located outside the Program
Area if foreclosed on due to taxes.
lmIT __.edi telt:..& j ggq j ro erh .-Frofertt .which lies immediatelv next to the boundary of' the
Prop earn Area, includinropert - across a street or intersection or located diagonally therefx°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 Irnprovements 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 la of the year following issuance of Certificate
of Completion following final constriction inspection. As provided in the Act, a tax abatement
may only be granted for the value of the Residential Improvements which exceed the base year
value of the property and which are listed in an Agreement between the City of Paris and the
applicant, subject to such limitations as the City of Paris may require. The base value will be set
as of January 1" 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 Buildin 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+ 100% 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
Total Dwelling Units Water Tap Labor Sewer Tap Labor
Fee Discount Fee Discount
5-9 50010 50%
10-19 75% 75%
20+ 100°/u 100%
PkMAs ovlision — 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 constricting 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 liance with ail other City Re uirements — The Applicant shall be fully responsible for
compliance with all zoning, subdivision platting, and building code requirements as may
specifically pertain to the subject pared(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 these Guidelines and Criteria.
1. Preliminary Application Steps
Page 4 of 7
I
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 pe=t(s). If the
Applicant for the building permit is not the owner of the real estate and does not
make application for an agreement on behalf of the owner, 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
notto participate in the program orto document that owner did notrespond 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 std% 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.
S. 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 -asst to
(* y p iga a buyer upon completion? Yes No
Mailing Address: —
Telephone Number: email: _
Builder or Contact (ff different than current/planned owner):
Name:
Mailing Address:
State GC License No:
Telephone Number: email .
Property Pareel(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 Blk. 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' 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