14 - Huhtamaki Nomination for Enterprise Project'-W",RIST
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TO: Mayor, Mayor Pro Tem & Paris City Council
CC: Grayson Path
FROM: Maureen Hammond, Executive Director of Paris Economic Development Corp.
SUBJECT: Huhtamaki
DATE: October 17, 2023
BACKGROUND:
Item No. 14
As you know, the PEDC recently supported and announced the expansion of Huhtamaki. The expansion
project anticipates creating 80 new jobs, increasing the existing workforce of 200 to nearly 300 jobs total.
The project is also set to drive an estimated investment of 85 million into our local economy, positioning
it as one of the most significant capital expansion projects in Paris within the last decade.
As part of Huhtamaki's incentive package, we are supporting and assisting with the application to Texas
Enterprise Zone. ("TEZ"). The Texas Enterprise Zone (TEZ) Program is a discretionary, economic and
business development incentive used by the State of Texas, in partnership with local communities, to
stimulate investment and job retention and creation. Projects are eligible for refunds of the state -portion
of sales and use taxes paid on taxable purchases made for the designated facility for a five-year period. No
local taxes are refunded or abated under this program, thus there is no cost to the local jurisdiction.
To obtain an Enterprise Project designation, a qualified business must first be nominated as an enterprise
project by the local jurisdiction (county or city). Following a nomination, the qualified business must
submit an application for competitive review by the Governor's Office.
Fortunately, the City of Paris has previously issued a Nominating Ordinance in 2016 to participate in the
TEZ program and designate its first project. As such, any subsequent designation by the City of Paris only
requires a Nominating Resolution to the original Nominating Ordinance in order for this requirement to
be met. Huhtamaki's consultant and Stephanie Harris have been working on the resolution that will be
submitted or attached to my memo.
STATUS OF ISSUE: We are seeking the City Council of the City of Paris to approve and submit a
Nominating Resolution in support of Huhtamaki's application for the Texas Enterprise Zone program.
RECOMMENDATION: Accept the Nominating Resolution in support of Huhtamaki's application for the
Texas Enterprise Zone program.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
NOMINATING HUHTAMAKI, INC. TO THE OFFICE OF THE GOVERNOR, ECONOMIC
DEVELOPMENT AND TOURISM ("OOGEDT") THROUGH THE ECONOMIC
DEVELOPMENT BANK ("BANK") FOR DESIGNATION AS A QUALIFIED BUSINESS
AND AN ENTERPRISE PROJECT ("PROJECT") UNDER THE TEXAS ENTERPRISE
ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303,
TEXAS GOVERNMENT CODE ("ACT"); AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code, as
amended (the "Act"), authorizes the designation of enterprise projects within an enterprise zone
(or, if the requirements of Section 2303.402 (a) (2) of the Act are met, within an area that does not
qualify as an enterprise zone); and
WHEREAS, the City Council of the City of Paris, Texas ("City") desires to pursue the creation
of the proper economic and social environment in order to induce the investment of private
resources in productive business enterprises located in the City and to provide employment to
residents of enterprise zones and to other economically disadvantaged individuals; and
WHEREAS, on November 14, 2016 the City Council of the City of Paris, Texas approved
Ordinance No. 2016-034 electing to participate in the Texas Enterprise Zone Program and
providing for local incentives available in each area within an enterprise zone and in each area not
in an enterprise zone, which local incentives are the same today as they were provided in
Ordinance No. 2016-034 approved on November 14,2016; and
WHEREAS, the Office of the Governor Economic Development and Tourism (OOGEDT)
through the Economic Development Bank (the "Bank") will consider Huhtamaki, Inc. as an
Enterprise Project pursuant to a nomination and an application made by the City; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act,
Texas Government Code, Huhtamaki, Inc. has applied to the City for designation as an Enterprise
Project; and
WHEREAS, the City finds that Huhtamaki, Inc. has represented to the City that it meets the
criteria for designation as an Enterprise Project under Chapter 2303, Subchapter F of the Act on
the following grounds:
1. Huhtamaki, Inc. is a "qualified business" under Section 2303.402 of the Act since it will be
engaged in the active conduct of a trade or business at a qualified business site within the
governing body's jurisdiction located outside of an enterprise zone and at least thirty-five
percent (35.0%) of the business' new employees will be residents of an enterprise zone,
economically disadvantaged individuals, or veterans; and
2. There has been and will continue to be a high level of cooperation between public, private,
and neighborhood entities within the area; and
3. The designation of Huhtamaki, Inc. as an Enterprise Project will contribute significantly to
the achievement of the plans of the City for development and revitalization of the area; and
WHEREAS, the City finds that Huhtamaki, Inc. meets the criteria for tax relief and other
Vr
grounds that it will be located at the qualified business site, will create a higher level of
employment, economic activity and stability; and
WHEREAS, the City finds that it is in the best interest of the City to nominate Huhtamaki,
Inc. as an Enterprise Project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section 1. The recitals herein above are hereby approved and are incorporated herein
for all purposes.
Section 2. The City Council finds that Huhtamaki, Inc. is a "qualified business" as defined
in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as
set forth in Section 2303, Subchapter F of the Act.
Section 3. That the findings of the City and its actions approving this resolution taken at
the City Council meeting are hereby approved and adopted.
Section 4. That the Enterprise Project shall take effect on the date of the designation of
the enterprise project by OOGEDT and terminate five years from the date of designation.
Section 5. The City Engineer, or his authorized designee, is hereby authorized to execute
Section 6. This Resolution shall become effective immediately upon its passage.
Reginald B. Hughes, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney