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15 - Second Public Hearing on disannexation request - CR 22500Item No. 15 TO: City Council Robert G. Vine, Interim City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Disannexation Request—LCAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500—FIRST PUBLIC HEARING. DATE: August 12, 2024 UPDATED FROM AUGUST 5,2024: Council will conduct the SECOND public hearing on the disannexation petition at its regular meeting on August 12, 2024. The other taxing entities have been notified as required by law, and the required notice was published in the Paris News on Thursday, July 25th. This is NOT AN ACTION ITEM. BACKGROUND: Nexus Renewable Power, LLC ("Nexus"), on behalf of Robert Moore, the property owner, has submitted a petition to disannex the four above -referenced parcels located on or around CR 22500 west of Paris. The parcels are located to the west, southwest, and south of the Kimberly-Clark plant.* *The thin yellow line is the city finfits line; the t1iick green lines outline the parcels,, Nexus has leased the parcels frorn. Mr. Moore as part ofthe MIZG Gc)ody Solar Project (the "Pro " ject"). '.rhe Project will occupy additional pareels owned by the cornpany to the west and out in the county. As a part of the develol,mieritt process, Nexus discovered that, all of parcel. 70423 and portions of the remaining parcels lie within the city limib.,..; of Paris. As a part of the application for disannexation and in. rneetings between the developer arid city staff, Nexus has presented the fbIlowing factors as impetus for seeking disartnexation- * Maintaining Jiniforrrihy ii:A Development for, City Protection, Over 90% of the acreage and costs for the Project are docated outside of the City of Pairis city lir alts, Disannexafloin ailows us to utilize a uir4orrn and coinsMent design style, coirnporients, and construction a1ppiroach, whl ch woWd minirnize potenda4 delays, reduce investment risk, reduce fire hazards, and genemHy reduce l:)otenttical mishalps due to disparate requiverneints. * Minimizing City of Paris Obfigations., l:) fsarnrnaoratfoun wotfld remove the burden frorn the City to offer locall services, a particii.ilar concern for a rerncae edge of dw City of Paris' property. * Acceleiratiing Substantial Economic Benefits to C11-0surn W. The Pr-r,::)jecL is participating in a Chapter 313 Agreement' (the "Agreemeirit") witl,-n Chisii.jm Independent School IDislAct (1(."hisurn ISD")., ...Fhe Agreement iIII pirovHe it -nor e than, million, dollars thIsum ISID over the next 35 years, and nearly $11 million fin the first 10 years., Iirniitiiallly, it was phinned for the I' to�ect to cc)rripiete construction in 2027, imeaning Chisum ISE) wouldn"t re-ceive any sigrilificarit revenues uuntfll 2028. Fhe Project approached CNSUrn ASID to arc-ridthe Agireernent in 2024, hoping to accelerate the Project firrieline by carnpdetiirig constrLICtion fin 2.025, allowing CNsuirn ISID to begin receivingsignificant revenues 412026 — twoyraars earfier than origlinally planned. The aforernentioned delays created by the SUP jeopardize the Fliroject's abHity to begin constn.,iction in 202-4and rnay further je)parr ize the ProjecIt's development. * Au..Aerating Ecoiriornic Beim fits to Larnar, Colunt.Y,. Par is Junior College and the Gtv of Paris. The Project is anticpate dl to accelerate its tirrieline by nearly two years with the aim of starfirig construction before the end c)f 2.024. 11 -tis woulld result in sijbstantW tax paygneints begininirig fin '.2025. Disannexation helps ensure this accelerated tirnehne can be rnafintah'led by conforming permitting requirerneirits, across the entive Project and providng moire . tirning, regulatory, arid revenue certainty to the ProJect and each of 11 arnar-County,I)ans ,R,iinior CoHege, and the City of Paris. The Slpiec'ffic t..lse permft Patendalliy IC Negates air Investment- W6in Gty oliL Paris Llirnits,...i..he Project has engaged in Ifnll,gftly respoin.n ible development by comrnittirn,1:, to a fifty--lz:sot-buffer, whk:,, n is higher than ir-ndn.ustiry standards and signilican lly iarger than other cn::nrnpairabble solar 1,xo.11er:;Its in ILarnar County, The Ionnr....11°nuandred...:foot bluffer required by Ordirnarnr.:e 2.01.7....0001,98....29-1.00 woanlld eiirnirnate f°ve (5) of ttie .,:uenrern (7) so6ar arlrays plh nrned foo these i:aarr::ek, creafling rrnu kiplle years a::nf devea Oprnent delays, and redUcirng the Project irwestrrnernt irn the, cky iirrnits by over 50'Yo, AS a iresn.uit:, a ima.joirity of the i:.)oternda6 tax irewrernlue to the City of Paris from the 9rll is a4ez* ju:an:.)pardized by SUP even Gro the absence of a disa nnexatlloirn As a resu k, disann°nexx,Aion IoHiowed by irivestrn°rernt is a net li.noskive for the City of Parks. o Hgure 1.......... Project Mains ( irnt:'ire (Project) o Figure 2---- [Project Maps ('Selected Airea iirn City of ParrisBoundary) o IFigare 2........Sellect(.:.d Area irn 'ituy of Paris Propen•ty..i..a itever°uuie .u.irrer'nt .508 Se't,baclk/iBLnffer SUP 4(XY Setback/ Bi..ilreir... e u,usSeeks a MuMutu.0y.... enellicial Outcorne with the L.ocall Cornimunity. Nexus is, and has been, a iorng-tir ne su.upporter of the Oty r)l Paris, Lamar County and the initiatives IIm.ursued any they iocai cornrnu..urdty...to that end, Ne n.is wlifl rnegodate flan good faith r.egaf&ng r: �i,sarnraexat:'ion firnancia� cow•ntrillau dons to ssn.ullaport:: the pity of Paris aina;i the irnitiaflves, of the local coirnmilu nity,. [From the Application for Disannexation attached hereto and incorporated by reference as Exhibit A.] A primary issue for Nexus is that Zoning Ordinance No. 1710 Sec. 29, "Required Components Regarding Solar Farm Specific Use Permits," will apply to portions of the Project that will lie within the city limits. Nexus contends that the SUP requirement will subject those portions of the Project to different regulations than will apply to the remainder of the installation in the county. In addition, Sec. 29 requires a 400 foot setbackibuffer when its plans call for a 50 foot setback/buffer. This would require Nexus to scale down the Project_ somewhat to comply with the setback requirement: Because solar arrays must be of a certain size and number of panels to function, Nexus would have to remove everything in red in the above photograph, not simply the panels within the city limits. Lamar County has entered into a tax abatement agreement with Nexus/other property owners, and Chisum ISD either has entered or is working towards entering a Chapter 313 agreement with the developers with respect to this project. STATUS OF ISSUE: The city's annexation/disannexation policy (see attached Exhibit B) provides that "the City will consider disannexation of any area within its corporate limits if so requested by a majority of property owner(s) and if the area fails to meet at least one of the above seven criteria, and if ...the proposed disannexation is part of an identifiable, logical whole (versus individual parces) which neither creates `holes' inside the existing corporate city limits, nor forces any other area of the city outside the revised boundary line (`islands' outside the revised lines)."' See Exhibit B, p. 16. The seven factors relate to: Whether the parcels form an enclave; Whether the area has developed as an urban area; Whether the area is a designated growth center; 1 Underlining is original to the text; italics are added by the authors. The policy requires only that the city consider disannexation, not that the city grant it. • Whether the retaining the area within the city limits would result in an adverse impact to the city, including adverse fiscal impacts; • Whether disannexation would present an opportunity for incorporation of the area into a new municipality or for an existing municipality to annex the area; • Whether the area is populated with residential development; and • Whether the area is proposed for long-term development. See Exhibit B, pp. 15-16 for the full text of the policy.2 Each of these criteria also contains a requirement relating to the provision of city services. In this instance, the Council may consider the property for disannexation because (a) the area proposed to be disannexed comprises more that an individual parcel (although the fact that it is only four parcels makes this point arguable given the language of the policy); (2) the area is not populated with residential development (criteria #6); and (3) disannexation of the area will not create any keyholes or islands. Nexus does not argue that the city has failed to provide services to the area; rather it argues that by disannexing the area, the city will be absolved from providing services, and that will be a benefit to the city. In reality, the area will continue to receive both fire and EMS services under existing agreements between the city and Lamar County, and in any event, given the nature of solar farms, the Paris Fire Department would be dispatched to any fire calls at the Project because it is the regional provider of hazmat services in this part of the state. The primary issue with disannexation of the proposed area as far as the city is concerned is that of lost potential property tax revenue. Nexus has estimated taxes on the parcels for the next 30 years in an amount between $307,267.00 (using the 400 foot setback) and $768,167.00 (using the 50 foot setback) based on the 2023-2024 tax rate and taking into account depreciation of the assets. In discussions and meetings with staff, Nexus has proposed entering into an agreement3 with the City whereby the city would disannex the property, and Nexus would pay an agreed upon sum in three installments beginning 30 days after disannexation and ending 30 days after beginning of operations, anticipated to be in December of 2025. In addition to, or in lieu of a portion of the agreed upon taxes, Nexus is also open to developing the portion of the proposed extension of the Trail de Paris that runs through the property. Terms of any such agreement would be negotiable and determined and approved by Council after discussions in executive session. In any event, it must be remembered that regardless of any up front payment of "taxes," once disannexed, given current annexation law, it would be nearly impossible to reannex the property, and the city would be giving up all future property taxes forever. This is not insignificant given that Nexus has estimated the 2026 taxable value of the parcels (after installation of the Project) at $15,800,000.00 and depreciating to $3,713,000.00 by year ten. On the other hand, should Council decide against disannexation, staff can investigate the possibility of a waiver of the 400 foot setback requirement and/or other requirements of the solar Z The policy for disannexation is simply the inverse of the policy for annexation. Other than the prohibitions against keyholes and islands, the policy on disannexation is sparse. Likewise, state law regarding disannexation is simply that the procedures used in disannexing property must not conflict with the procedures for annexing property. 3 The agreement could take the form of a development agreement, a disannexation agreement, or a Chapter 380 agreement. The type of agreement would be determined in the negotiation process. farm SUP to accommodate the needs of Project. We anticipate that this would take the form of a Chapter 380 agreement and would be tied to trail development. Should Council wish to undertake disannexation proceedings with respect to this property, the following procedure will need to be followed: J�une 24, 2024 Git�, Couneil Meeting The City Couneil will diseuss the petition and detenni whether- or- T not to pr-eeee`7 Tari Gotmeil wishes to pre ee it s1,.-.,,l.a side ,,.7 act , �Nthe i � is in the diser-efieft of the Couneil. if Catmeil deteimiines to pr-eeeed, from here, the entire pr-eeess, m-ustbe eomplete within 90 da�,s. if Cotmeil determines iiet to pr-oeeed, there will be no 4Hth aefien on the petition. If Council chooses to proceed: Yune 25 ittly 6, 2024 The eit-y a#omey will send out nefiees te other- taxing entities, sen4ee pi v=azcicrs9and railroads us-iicccusz-r-y, wrrr 11 1.....sL .,.. done by 30 days befer-e the fifst of two p4lie My 16 26, 2024 P41ish notiee ef first public heafing in the Par-is News (publicatien must b et, eei the-2491'4-4 oth day out f•.,,,, the 1' pub,lie hearing). T 1 23 A t 2, 02 Publish ,efiee of s ,public hearing i1 the Par-is News (Y „V; ,t;, must be between ee the 70� The two publiention periods ever-lap between jub, 23 july 26, 2024, so both h be published togetheF on J 7 7c „ate .. r.. bliention fee. August5, 2024Ci-ty Gouneil Speeit`il Meeting 1' publie hearing (public l,o.,,-ings must be held b et, e ffir tb,o 919114 "nth A t f.,-.,�, fie the or-di,anee_to .a;s,,,,nex) �' riniczivirruccivrr vrrcrla ..,........ ... ....... .� August 12, 2024—City Council Meeting--),,d public hearing September 9, 2024—City Council Meeting—Act on ordinance to disannex (day 77 from institution of disannexation proceedings) BUDGET: The requested disannexation would deprive the City of the property tax revenue for the disannexed property; however, the developer is interested in entering into an agreement to mitigate the loss as described above. OPTIONS- 1. Diseuss and aet on a resolution stating the intent of eity Gouneil to institute T r A D Pare '71 1 1 1 '71 1 1 Z 22 an 70423 �Y.�e�cCt�exr-�rvee�ii�g$-on--�c�-r�-��sr�elB–, , ; ,'ZA4Z , , loeate G t, Read 22500 ,-,.7 a ,-:;,-, ..im tel„ 291 µeros µn.7 provide dir-eetien te staff as to next steps. Authorizing disannexationpreee& does not obligate Couneff to ultimately disannex the par-eels. T! ADD 71 1 1 7 71 1 1 Z 7 22 an 7047'2 1.,ea4e�l o 6�-�}Sc`lihie�'cE�ti63�i5-t�zc--z-r�rcarcel`' , �-04__, ____ ....--,-------- _-- PA a 1 I NITA I -Walla bM m MIN I loft-KEANDREWS qW VALVATIO N•TAX•SO LUTID.....�.. NS May 13th, 2024 City of Paris 135 SE First Street Paris, TX 75460 RE: Application for Disannexation (Nexus Renewable Power, LLC c/o Mr. Robert Moore) Dear City Council: K.E. Andrews is pleased to have the opportunity to assist MRG Goody Solar Project in their ongoing project development efforts southwest of the City of Paris. MRG Goody Solar Project is being developed by Nexus Renewable Power, LLC ("Nexus"). Nexus is a Texas-based company that develops, finances, and operates solar and energy storage assets. Specifically in Lamar County, Nexus has developed three utility -scale solar projects. Tyson Nick Solar Project, is currently under construction. MRG Goody Solar Project is currently in late -stage development, expecting to begin construction by the end of 2024. SGT Hoskins Solar Project is currently in mid -stage development, expecting to begin construction by 2026.1 Nexus is committed to responsible renewable energy development in Lamar County and the greater Paris area. Together, these three projects represent a capital investment of nearly $1 Billion dollars in Lamar County, and will inject tens of millions of dollars collectively into local public schools, Paris Junior College, and Lamar County. As part of its commitment to responsible renewable energy development, Nexus is seeking the approval from City Council of a Disannexation ("Disannexation") from the City of Paris, for the MRG Goody Solar Project, in a mutually beneficial manner to the City of Paris and Nexus. The enclosed Application for Disannexation details Nexus' request. The approval of this Disannexation would contribute to the local economy by reducing the City of Paris' potential liabilities and costs, providing the City of Paris with additional potential assets, allowing Nexus to maximize its investment and enabling Nexus to accelerate development of the MRG Goody Solar Project, to bring significant tax revenue to Chisum Independent School District, Paris Junior College, and Lamar County. Kind Regards, Garrett Peters Senior Tax Manager KE Andrews 1 Nexus names all its projects after soldiers that have died in the line of duty. Nexus also works closely with the families of these soldiers to provide support directly and through certain charitable foundations supported by Nexus and Nexus' partners. KEANDREWS VALUATION*TAX•50LUTIONS APPLICATION FOR DISANNEXATION NAME OF APPLICANTS: MRG GOODY SOLAR PROJECT C/O MR. ROBERT MOORE MAILING ADDRESS: 5160TENNYSON PARKWAY, SUITE 1000W, PLANO, TEXAS 75024 TELEPHONE NUMBER: 903-517-5354 VOTING DISTRICT NUMBER: 3G VOTER REGISTRATION NUMBER: 1220499252 ADDRESS OF PROPERTY: COUNTY ROAD 22500, PARIS, TEXAS (LAMAR COUNTYAPPRAISAL DISTRICT PROPERTY ID'S 71112, 71113, 70422, 70423) NUMBER OF PEOPLE RESIDING ATTHIS ADDRESS: 0 I/We, the undersigned owner(s) of the above-described property, do hereby petition the City of Paris to disannex my/our property or the following reasons: SEE ENCLOSED EXHIBIT REQUIREMENTS: Attach a complete copy of the latest deed of record for the above-described property evidencing ownership (Exhibit B). This deed must include a legal description of the property requested to be disannexed along with a plat or a drawing indicating the area to be disannexed (Exhibit Q. Include a copy of the City Ordinance showing when this property was first annexed into the City of Paris corporate city limits (Exhibit D). I/We understand that the City of Paris has no obligation to disannex property except as may be required by law. This application must be completed, in its entirety, with all required attachments. City staff will review the application for completeness and conformance with City policies before taking it to City Council for discussion. You will be notified when staff schedules your disannexation petition for consideration and discussion by the City Council. You should plan to attend this meeting of the Paris City Council. A 5/13/24 Applicant(s) Signature Date (owner of all parcels) 1 KEANDREWS o VALUATIONmmmmm� •TAX • 50 LUTIO NS May 13th, 2024 City of Paris 135 SE First Street Paris, TX 75460 RE: Exhibit A - Application for Disannexation (Nexus Renewable Power, LLC c/o Mr. Robert Moore) Reasons for Disannexation Dear City Council: MRG Goody Solar Project (the "Project") requests Disannexation for the following reasons: Maintaining Uniformity of Development for City Protection. Over 90% of the acreage and costs for the Project are located outside of the City of Paris city limits. Disannexation allows us to utilize a uniform and consistent design style, components, and construction approach, which would minimize potential delays, reduce investment risk, reduce fire hazards, and generally reduce potential mishaps due to disparate requirements. Minimizing City of Paris Obligations. Disannexation would remove the burden from the City to offer local services; a particular concern for a remote edge of the City of Paris' property, Accelerating Substantial Economic Benefits to Chisum ISD. The Project is participating in a Chapter 313 Agreement2 (the "Agreement") with Chisum Independent School District ("Chisum ISD"). The Agreement will provide more than $23 million dollars to Chisum ISD over the next 35 years, and nearly $11 million in the first 10 years. Initially, it was planned for the Project to complete construction in 2027, meaning Chisum ISD wouldn't receive any significant revenues until 2028. The Project approached Chisum ISD to amend the Agreement in 2024, hoping to accelerate the Project timeline by completing construction in 2025, allowing Chisum ISD to begin receiving significant revenues in 2026 —two years earlier than originally planned. The aforementioned delays created by the SUP jeopardize the Project's ability to begin construction in 2024 and may further jeopardize the Project's development. Acceleratinfz Economic Benefits to Lamar Count, Paris Junior College and the City of Paris. The Project is anticipated to accelerate its timeline by nearly two years with the aim of starting construction before the end of 2024. This would result in substantial tax payments beginning in 2025. Disannexation helps ensure this accelerated timeline can be maintained by conforming permitting requirements across the entire Project and providing more timing, regulatory, and revenue certainty to the Project and each of Lamar County, Paris Junior College, and the City of Paris. 2 These Chapter 313 Agreements no longer exist so this Project presents one of the final opportunities for Chisum ISD to recognize this material benefit to the school district. 2424 Ridge Road 469.298.1594 www-keataxcorn Rockwall,O8 Anil, ._ . VALUATION"r •TAX•5OL UTIO N5 The Specific Use Permit Potentially Negates all Investment Within City of Paris Limits. The Project has engaged in highly responsible development by committing to a fifty -foot -buffer, which is higher than industry standards and significantly larger than other comparable solar projects in Lamar County. The four -hundred -foot buffer required by Ordinance 2017-0001,98-29-100 would eliminate five (5) of the seven (7) solar arrays planned for these parcels, creating multiple years of development delays, and reducing the Project investment in the city limits by over 50%. As a result, a majority of the potential tax revenue to the City of Paris from the Project is already jeopardized by SUP even in the absence of a disannexation As a result, disannexation followed by investment is a net positive for the City of Paris. o Figure 1—Project Maps (Entire Project) o Figure 2—Project Maps (Selected Area in City of Paris Boundary) o Figure 3 —Selected Area in City of Paris Property Tax Revenue ■ Current 50' Setback/Buffer ■ SUP 400' Setback/Buffer Nexus Seeks a Mutually -Beneficial Outcome with the Local Community. Nexus is, and has been, a long-time supporter of the City of Paris, Lamar County and the initiatives pursued by the local community. To that end, Nexus will negotiate in good faith regarding disannexation financial contributions to support the City of Paris and the initiatives of the local community. 2424 Ridge Boal 469.298.1594o FIGURE 1 AOR 111111ii kKEANDREWS ..- ........... vwVALUATI ON OTAXOSO LUTIO NS I MRG Goody Solar Project, LLC A 0 025 05 9 Win FIGURE 2 MRG Goody Solar Project, LLC KEANDREWS VALUATION -- ---- -TA' X ........ S -O L'U"T'I 0 .... N -S 0 005 09 a2 mfls FIMAWITWRI� FIGURE 3 �ffk KEANDREWS mrN�ALUATIOilsl #TAX- SOLUTIONS 71- Potential City of Paris Property Tax Revenue I . . ................ ... . . .... . . . .......... . . ............ .. ..... - 11111111"�--,--:- . . ......... . . _- - ------- ............... CURRENT SO' Setback/Buffer . ......... NET PRESENT VALUE: $408551 TAXABLE CITY OF PARIS ESTIMATED WITH SUP 400'Setback/Buffer ----- ------ NET PRESENT VALUE: $163420 TAXABLE CITY OF PARIS ESTIMATED YEAR VALUE TAX RATE TAXES . .. .. .. ...... YEAR VALUE .. . . ... . TAX RATE ............ . . . . . . . TAXES 15,800,000 0.4778% 75,496 2026 6,320,0000.4778% - - --- ----- 30,198 . . .......... . . . ...... . . . _?026 2027 14,457,000 0.4778% 69,078 ........... 2027 11 1 1 5,782,800 0.,4,778,% ....... . . ------- ........ 27,631 2028 . . . .................. 13,114,000 --------- 0.4778% - - 62,661 2028 . ... ....... .. - 5,245,600 0.4778% . . ...... . ................. 25,065 2029 . ... 11,771,000 . . . ................ 0.4778% 56,244 2029 4,708,400 ............. - 0.4778% . 22,498 . . . . . .................... 2030 10,428,000 ........... . . . . . . - O�4 78% 49,827" .............. .......... . 2030 . . ........ 4,171,200 0.4778% 19,931 - - - ------ 2031 9,085,000 0.4778% 43,410 2031 ........... 3,634,000 0.4778... .4778 J7,364 2032 7,742,000 0.4778% 36,993 2032 ...... ... ... . 3,096,800 0.4778% 1-1-111, . . . ........... 14,797 .. .... . . ........... 2033 6,399,000 0.4778% 30,576 2033 2,559,600 0.,4778% 12,230 2034 ..... . 5,056,000 . ........... - . 0.4778% ...... 24,159 ... .... . ..... .. 2034 2,022,400 0.4778% 9,663" 2035 3,713,000 0.4778% 17,741 2035 1,485,200 0.4-77_8_%_ 7,097 2036 3,160,000 0.4778% 15,099 2036 ............. ..... 1,264,000 0.4778% 6,040 2037 3,160,000 0.4778% 15,099 2037 1,264,000 -------- - 0.4778% ...... . .... 6,040 2038 3,160,000 0.4778% . . ......... 1,264,000 0.4778% ..... ......... 6,040 2039 ... .......... - 3,160,000 ----- 0,4778% -1�5,099 15,099 ................ 2039 1,264,000 0.4778% 6,040 2040 ........... 3,160,000 0 . 4778% 15,099 2040 1,264,000 0.4778% 6,040 2041 3,160,000 OA778% 15,099 - ---------- .......... 2041 . .................. 1,264,000 ... . .. ....... 02.4778% . ... ... 6,040 ........ .. 2042 . 3,160,000 ..... . . . ........ 0.4778% 15,099 2042 1,264,000 0.4778% 6,040 2043 3,160,000 . ........ ..... 0.4778% 15,099 2043 ................ 1,264,000 0.4778% 6,04.0 2044 3,160,000 0.4778% 15,099 2044 1,264,000 .0.4778% 6,040, 2045 ........ ........ 3,160,000 . . . . . . . . . . . 0.4778% 15,099 . . ........... 2045 1,264,000 , . ... ........ . ....... 0.4778% 6,040 2046 3,160,000 0.4778% 15,099 2046 1,264,000 ... ................. . . . . ...... 0.4778% 6,040 .. . ........ 2047 . . ............ 3,160,000 - - - --------- 0.4778% . 15,099 .............. ..... 2047 ...... 1,264,000 - --- ------- - - - --- --- 0.4778% ........ .......... 6,040 ................ 2048 . . . . ................ ............................. 3,160,000 ........ . 0.4778% 15,099 2048 1,264,000 0.4778% ----------- 6,040 2049 3,160,000 0.47789/o 15,099 2049 1,264,000 . . ....... 0.4778% . . . ....... ...... 6,040 2050 . . . . .. . . ....... 3,160,000 0.4778% 15,099 2050 1,264,000 . . . .. ........................... 0.4778% ... 6,040 2051 3,160,000 . . 0.4778% . . ............ 15,099 . . . . . . ........... 2051 1,264,000 0.4778% 6,040 2052 . ......... . . .. . .... - 3,160,000 ---- 0.47789/o 15,099 2052 1,264,000 ..... ...... .... 0.4778% .... .. .... 6,040 2053 3,160,000 0.4778% 15,099 2053 1,264,000 0.4778% 6,040 --- ..... 2054 . . . .......... 3,160,000 0.4778% 15,099 ..... . . ...... 2054 1,264,000 . . .............. 0.4778% 6,040 2055 . . . ........ ..... . . . 3,160,000 0.4778% 15.,-0..99. 2055_ 1,264,0,00 0.4778% 6,04,01, Years 1- 10 466,185 Years 11- 30 301,982 Totals: 768,167 Elwww.keatax.com Years I - 10 186,474 Years11 - 30 120,793 ........... - Totals: 307,267 May 9, 2024 MRG Goody Solar Project, LLC c/o Nexus Renewable Power 5160 Tennyson Pkwy, Suite 1000W, Plano, Texas 75024 Dear Paris City Council, I am writing in support of the MRG Goody Solar Project (the "Project") being proposed southwest of Paris, Texas. The project is wholly within Chisum Independent School District ("Chisum ISD"). The Project will promote clean, renewable energy, create hundreds of good paying construction jobs, and provide millions in additional revenue for the landowners and the local community. Chisum ISD is participating in a Chapter 313 Agreement (the "Agreement") with the Project. On December 12, 2022, the Chisum ISD School Board unanimously a proved the Agreement. The Agreement will provide more than $23 million dollars to Chisum ISD over the next 35 years, and nearly $11 million in the first 10 years. Initially, the Agreement stated the Project would complete construction in 2027, meaning Chisum ISD wouldn't receive any significant revenues until 2028. The Project approached Chisum ISD to amend the Agreement in 2024, hoping to accelerate the Project timeline by completing construction in 2025, allowing Chisum ISD to begin receiving significant revenues in 2025 — two years earlier than originally planned. This would result in substantial tax payments beginning in 2025 for the all the relevant taxing authorities. The requests of the Project from the City helps ensure this accelerated timeline can be maintained by conforming permitting requirements across the entire Project and providing more timing, regulatory, and revenue certainty to the Project and each of Lamar County, Chisum ISD, Paris Junior College, and the City of Paris. Once constructed, MRG Goody Solar Project will be the second lar est taxpayer in Chisum ISD, following La Frontera Holdings' Lamar Energy Center. I respectfully request that the City Council support this Project in its requests to bring these benefits to Chisum ISD's students, families, staff, and the greater Paris area. Kind Regards, T c4ev,"& Superintendent — Chisum ISD Chisum Independent School District 3250 Church Street, Paris, Texas 75462 903-737-2830 AM - KE ' ANDREWS qW, VALUATI ON -TAX*S 0 LUTIO N5 EXHIBIT B DEEDS OF RECORD 2424 Ridge Road KI 469.298.1594 www.keatax.com Rockwall, TX 75087 194574-2422 WD Ruth Sisson, County Clerk - Lamar County, TX BY:STONE TITLE COMPANY, INC GENERAL WARRANTY DEED 22-13828 (Vendor's Lien Reserved and Assigned to Third Party Lender) NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Effective Date: June :`;42022 Grantor: Charles G. Dunagan, a single man Grantee: Robert L. Moore Consideration: TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, and the further consideration of the execution and delivery by the Grantee of that one certain promissory note of even date herewith in the principal sum of $300,000.00, payable to the order of Guaranty Bank & Trust, N.A., ("Lender"), as therein specified, providing for acceleration of maturity and for attorney's fees, secured by the vendor's lien herein retained, and is additionally secured by a deed of trust of even date herewith to i_t� IC.. (,..,,.. ..... ........_.. Trustee. Property: SEE EXHIBIT "A" ATTACHED HERETO Reservations From and Exceptions to Conveyance and Warranty: This conveyance, however, is made and accepted subject to all outstanding mineral interest, restrictions, reservations, easements, covenants and conditions, relating to the herein above described property as now reflected by the records of the County Clerk of Lamar County, Texas. 194574-2022 06/15/2022 01;40:50 PM Page 2 of 6 194574-2022 Page 2 of 6 1. Right of Way Deed to the State of Texas dated July 2, 1952, recorded in Volume 325, Page 501, Lamar County Deed Records. 2. Channel Easement to the State of Texas dated July 2, 1952, recorded in Volume 325, Page 500, Lamar County Deed Records. 3. Right of Way Deed to Gulf Colorado & Santa Fe Railway Company, dated October 23, 1886, recorded in Volume 53, Page 71, Lamar County Deed Records. 4. Easement to Lamar County Water Control and Improvement District #1 dated March 3,1959, recorded in Volume 356, Page 499, Lamar County Deed Records. 5. Easement and Right of Way to Texas Power and Light Company of Dallas, Texas dated March 8, 1961, recorded in Volume 374, Page 231, Lamar County Deed Records. 6. Easement to Lamar County Water Control and Improvement District #1 Auds Creek, dated February 25, 1963, recorded in Volume 398, Page 70, Lamar County Deed Records. 7. Boundary Agreement between Grace Dunagan and Kimberly -Clary Corporation dated November 30, 1982, recorded in Volume 651, Page 680, Lamar County Deed Records. 8. Easement and Right of Way to Texas Power and Light Company of Dallas, Texas dated April 25, 1975, recorded in Volume 568, Page 578, Lamar County Deed Records. Grantor, for the consideration, receipt of which is acknowledged, and subject to the reservations from and exceptions to conveyance and warranty, grants, sells and conveys to Grantee the property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and hold it to Grantee, Grantee's heirs, executor, administrators, successors or assigns forever. Grantor binds Grantor and Grantor's heirs, executors, administrators and successors to warrant and forever defend all and singular the property to Grantee and Grantee's heirs, executors, administrators, successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the reservations from and exceptions to conveyance and warranty. But it is expressly agreed that the Vendor's Lien, as well as Superior Title in and to the above described premises, is retained against the above described property, premises and improvements until the above described note and all interest thereon are fully paid according to the face, tenor, effect and reading thereof, when this Deed shall become absolute. THAT, Lender, at the instance and request of the Grantee herein, having advanced and paid in cash to the Grantor herein that portion of the purchase price of the herein 194574-2022 06/15/2022 01:40:50 PM Page 3 of 6 194574-2022 Page 3 of 6 described property as is evidenced by the herein above described Note, the Vendor's Lien, together with the Superior Title to said property, is retained herein for the benefit of said Lender and the same are hereby TRANSFERRED AND ASSIGNED to said Lender, its successors and assigns. Payment of ad valorem taxes for the current year having been assumed by grantee. When the context requires, singular nouns and pronouns include the plural. Chanes G. Dunagan ,) STATE OF TEXAS COUNTY OF LAMAR 194574-2022 194574-2022 06/15/2022 01:40:50 PM Page 4 of 6 Page 4 of 6 T This instrument was acknowledged before me on the /S'41�day of 2022, by Charles G. Dunacian. RY Pio xa.'I 0 ,an -y oSe u —7 Amanda Posey OfTe tL' to .2 24 Notuy Public, State ofTexas _ E N W. 2024 No ID 13089733-2 After Recording Return To: kd' e � - - ---------- ;�� db'�t�aary Public, State of Texa§ OX 194574-2022 06/15/2022 01:40:50 PM Page 5 of 6 194574-2022 Page 5 of 6 L,G. po>... ten_ c.S CtbSc3..2.02.1 3,9 7 �w 4 G tti 'i. r 2obat--•�- f�tmp}�o,� i r� cJo"o6'�ti t11.3�:z�� 0 co M "3q e o fi fi P 3� i AC1iS1T,q 4 -p t O O'h � A ui 7 _ Lq h.......... N ai d a W • M "3q e o fi fi P 3� i AC1iS1T,q 194574-2022 06/15/2022 01:40:50 PM Page 6 of 6 194574-2022 Page 6 of 6 Field Notes Being all that certain tract of land situated in the City of Paris, Lamar County, 'Texas, a part of the Lemuel Ewer Survey, Abstract No, 313, the M, E. R and P. R. R. Survey, Section. No. 37, Abstract No. 637, including the 177.44 acre tract in said M, E. P, and P. R. R. Survey and the 15 acre tract in the Ewer Survey conveyed to G. O. Dunagan by Partition Deed between Oscar and May Belle Dunagan, G. O. and Bertha Dunagan and Etto Richie as part of the Second Part recorded in Volume 223, Page 588 of the Lamar County Deed Records and being further described as follows. Beginning at a 112" iron pin found for corner, the Northeast corner of said 177.44 acres; Thence South with the East line of said 177.44 acres and the West line of Tract 11 conveyed to Kimberly Clark Corporation by deed recorded in Volume 647, Page 239 of the Lamar County Deed Records a distance of 944.58 feet to a 112" iron pin found for cornier (capped Chaney 4057), the Northwest corner of said 15.0 acres; Thence North 89046' East with South line of said Kimberly Clark Tract 11 and the North line of said 15 acres a distance of 1249.14 feet to a found wood fence coiner in the West line of R M. Highway No, 137; Thence South 34°59' West with said West line a distance of 506.35 feet to a 112" iron pin set for corner (capped Chaney 4057) in the intersection with the North line of the former G. C. and S. F. Railroad; Thence South 67°27' West with said North line a distance of 5195.24 feet to a 112" iron pin set for corner (capped Chaney 4057), the Southwest corner of said 177,44 acres; Thence North 1155117" East with the West line of said 177.44 acres and the East line of a 160.328 acre tract conveyed to Robert Moore by deed recorded as Lamar County Document No. 180059-2021 a distance of 1913.97 feet to a found 3" steel fence corner, the Westerly Northwest corner of said 177.44 acres; Thence East with the North line of said 177.44 acres and the South line of said 160.328 acres a distance of 1372.47 feet to a 112" iron pin set for corner (capped Chaney 4057); Thence North 01,06' West with, the West line of said 177.44 acres and the East line of said 160,328 acres a distance of 1433.75 feet to a 1/2" iron pin found for corner, the Northerly Northwest corner of said 177,44 acres; Thence East (basis of bearing per North line 177.44 acres Vol. 223, Pg. 588 Lamar County Deed Records) with said North line and the South line of a 231.7 acre tract conveyed to Kimberly Clark Corporation by deed recorded in Volume 647, Page 249 of the Lamar County Deed Records a distance of 2405.09 feet to the point of beginning and containing 190.878 acres of land. 1, R. Brandon Chaney, Registered Professional Land Surveyor No. 4057, Stole of Texas, state actual Survey made t5n t� Mitnd under my ' sent an ac F. 2022 s ,......... f.::. , A that the above Plat and Frei Notes depict an re re supervision and finished .. W. _ P` { P ✓ d u t Stl' �pu'.� R. Brandon Chaney R P L. S. No 4 Chaney Engineering, Inc. 903-7,0-o'O Firm No. 10153700 Job No. 106May22f �1— op- z EXHIBITA ti �+ Crone Gruba Sa+�w7' 1761 ��.�� Its am am. JIF vxb 04- am WSWIR —{ y6C.Y18 AG 4LEP. p_q k Sv-cy /$]7 W. 14 L*dwd 5ynrc , �g } Y b,.. Y i J +, Ai _r r-j on Surveing CO- OMRMEX ao taa 750 KEANDREWS VALUATI ON *TAX•5O LOTIONS EXH I BIT C AREA TO BE DISANNEXED COUNTY ROAD 22500, PARIS, TEXAS (LAMAR COUNTY APPRAISAL DISTRICT PROPERTY ID'S 71112, 71113, 70422, 70423) 2424 Ridge Road �13 469.298.1594 www.keatax.corr Rockwall, TX 750 13 Lamar CAD Web Map 5/10/2024, 7:43:41 PM 1:18,056 -� Parcels Abstracts 0 0.13 0.25 0.5 mi 0 0.2 0.4 0.8 km ® OpenStreetMap (and) contributors, CC -BY -SA Lamar County Appraisal District, BIS Consulting - www.bisconsulting.com Disclaimer. This product is for informational purposes only and has not been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on -the -ground survey Lamar CAD Web Map 5/10/2024, 7:44:43 PM 1:18,056 Parcels Abstracts 3 0.13 0.25 0.5 mi 0.2 0.4 0.8 km ® OpenStreetMap (and) contributors, CC -BY -SA Lamar County Appraisal District, BIS Consulting-www.bisconsulting.com Disclaimer: This product is for informational purposes only and has not been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on -the -ground survey Lamar CAD Web Map 5/10/2024, 7:45:18 PM 1:18,056 Parcels Abstracts 0.13 0.25 0.5 mi 0.2 0.4 0.8 km 0 OpenStreetMap (and) contributors, CC -BY -SA Lamar County Appraisal District, BIS Consulting - www.bisconsulUng.com Disclaimer: This product is for informational purposes only and has not been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on -the -ground survey Lamar CAD Web Map 5/10/2024, 7:45:49 PM 1:18,056 — Parcels Abstracts 0 0.13 0.25 0.5 mi ........ �Q 0 0.2 0.4 0.8 krr © OpenStreetMap (and) contributors, CC -BY -SA Lamar County Appraisal District, BIS Consulting - www.bisconsulting.com Disclaimer: This product is for informational purposes only and has not been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on -the -ground survey KEANDREWS VALUATI ON -TAX-SO LUTIO NS EXHIBIT D CITY ORDINANCE 2424 Ridge Road., •, 13 www.keatax.com Rockwall, TX 750