2025-026 - Authorizing an Economic Development Agreement and Tax Abatement Agreement with EXL Capital Group (Jakir Malek) – 5 in 5 Housing Infill Development ProgramRESOLUTION NO. 2025-026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS APPROVING AND AUTHORIZING AN ECONOMIC
DEVELOPMENT AGREEMENT AND TAX ABATEMENT AGREEMENT
WITH EXL CAPITAL GROUP, LLC PURSUANT TO THE 5 IN 5
HOUSING INFILL DEVELOPMENT PROGRAM; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on January 27, 2025, the City Council of the City of Paris, Texas
passed Ordinance No. 2025-003 creating Reinvestment Zone 2025-1 and 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, which guidelines and criteria from time to time have been amended,
most recently on May 12, 2025 by Resolution No. 2025-025; and
WHEREAS, the City Council has, in said guidelines and criteria, designated an
area within Reinvestment Zone 2025-1 as being eligible for the Program; and
WHEREAS, on February 24, 2025, the City Council approved resolution 2025-
010 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 therein, 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 four (4) single family homes on 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 properties
are located within the boundaries of the defined geographic area and Reinvestment
Zone 2025-1 and meet the requirements for Improvements set forth in the guidelines
and criteria for the Program as set forth in City Resolution No. 2025-025.
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 are incorporated herein for all purposes.
Section 2. That the terms of the Economic Development Agreement and Tax
Abatement Agreement between the city and EXL Capital Group, LLC and the property
the subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted
by the City of Paris by Resolution No. 2025-010 and will lead to the economic
development of the Program Area described in said Resolution No. 2025-025, which
Program falls entirely within Reinvestment Zone 2025-1.
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as Exhibit A and incorporated herein by reference, having been reviewed by
the City Council of the City of Paris and found to be acceptable and in the best interests
of the City of Paris and its citizens, be, and the same are hereby, in all things approved.
Section 4. That the Mayor is hereby authorized to execute the Agreement and
all other documents in connection therewith on behalf of the City of Paris
substantially according to the terms and conditions set forth in the Agreement
attached hereto as Exhibit A.
Section 5. That the planned use of the property the subject of the tax
abatement will not constitute a hazard to public safety, health, or morals.
Section 6. That this approval and execution of the agreement on behalf of the
City is not conditioned upon approval and execution of any other tax abatement
agreement by any other taxing entity.
PASSED AND APPROVED by the City Council of the City of Paris, Texas at its
regular meeting on the 91h day of June, 2025.
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ATTEST: ..........
1S, TEy`P
lice Ellis, City Clerk
Mihir Pankaj, Mayor
APPROVED AS TO FORM:
..........
Sepanie H. Harris, City Attorney
Exhibit A
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 EXL CAPITAL GROUP LLC
(hereinafter referred to as Owner).
WITNESSETH:
WHEREAS, on January 27, 2025, the City Council passed Ordinance No. 2025-003
creating Reinvestment Zone 2025-1, 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 2025-1 (then known as Reinvestment Zone 2020-1) as being eligible for the
Program (the Program Area); and
WHEREAS, City Council has revised the guidelines and criteria for the Program and for
tax abatement agreements granted thereunder three times, the most recent revisions adopted by
Resolution 2025-025 on May 12, 2025; and
WHEREAS, Owner has submitted an application for a 5 In 5 Housing Infill
Development project to construct four (4) single family homes (hereinafter the Improvements) at
the properties described herein below in Paris, Texas (the Properties); and
WHEREAS, city staff has reviewed the application and the location of the above
described residential Improvements and has determined that the Properties are located within the
boundaries of Reinvestment Zone 2025-1 and are within the defined geographic area of the
Program Area, and the application meets the requirements for Improvements set
1
forth in the Guidelines and Criteria for the 5 In 5 Housing Infill Development Program as set
forth in City Resolution No. 2025-025.
NOW, THEREFORE, in consideration of the terms and conditions referenced herein,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City and Owner (collectively referred to as Parties) hereby mutually agree as
follows:
I.
Recitals
1.1 The Recitals set forth hereinabove are incorporated into this Agreement for all
purposes.
II.
Component Parts
2.1 This Agreement comprises 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.
III.
Terms Applicable to both the Economic Development Agreement and the Residential Tax
Abatement Agreement:
A. The Properties—Areas to be Improved
3.1 The Improvements defined in section III B 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. 2025-1 and within the area set forth in the Program:
• LCAD- 13833, 128 NE 10' St., City of Paris Block 32-B, Lot 10
• LCAD- 13802, 203 NE 13' St., City of Paris Block 32, Lot 7
• LCAD- 10706, 1758 W. Shiloh, Colonial Addition Block 5, Lot 10
• LCAD- 10707, W. Shiloh, Colonial Addition Block 5, Lot 11
3.2 The Properties listed are Tax Foreclosure City Trustee (City Trustee) status
properties except that Parcel No. 13802 is a Lamar County Trustee (County Trustee) property.
01
B. Consideration --Improvements
3.3 The Improvements to be completed consist of four (4) single family homes
structures (the Structure or Structures) on the above described Properties and as more fully
described in the application for the Program attached hereto and incorporated herein as Exhibit
1.
3.4 The total estimated value of the Improvements to be constructed on the above -
referenced parcels is at least FIVE HUNDRED TWENTY THOUSAND AND NO/100
DOLLARS ($520,000.00) ($130,000.00--$150,000.00 per unit).
3.5 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.
3.6 Owner shall allow city inspectors access to the Properties and Improvements
throughout construction and completion of Improvements.
3.7 Owner agrees and covenants that it will diligently and faithfully construct each
Improvement/Structure referenced herein in a good and workmanlike manner within 12 months
of obtaining building permits from City for each Structure. Owner further covenants and agrees
that construction of the Improvements will be in accordance with all applicable state and local
laws, codes, regulations, and Program Guidelines or Owner will procure a valid waiver or
variance thereof. Owner shall complete all Improvements required herein on or before June 8,
2030.
3.8 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.
3.9 Owner shall notify the Lamar County Appraisal District upon completion of
Improvements and request an updated appraisal of the Improvements.
3.10 Owner shall provide City with appraised value of Improvements upon receipt of
same from Lamar County Appraisal District.
3.11 Owner may not use the parcels described in Section 3.1 for any other purpose
other than to construct the Improvements set forth in this Article. Use of any parcel for any other
purpose shall constitute a separate act of default of the Agreement and will trigger the default
provisions and remedies set forth hereunder.
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IV.
Terms Specific to the Economic Development Agreement—
Texas Local Government Code Chapter 380
A. Term
4.1 The term of this Economic Development Agreement shall commence on June 9,
2025 and shall continue for a period of five (5) years ending on June 8, 2030.
B. Land Conveyance
4.2 In consideration for Owner's construction and completion of the above -referenced
Improvements, City agrees to convey the above -referenced parcels to Owner in exchange for
payment in the amount of City's proportionate share of $1.00 per parcel in accordance with the
Interlocal Agreement for establishing alternate manner of sale of land acquired by the City of
Paris, Texas pursuant to Section 34.051 of the Texas Tax Code executed on or about January 14,
2022 by and between the City of Paris, Texas, Lamar County, Texas, Paris Independent School
District, and Paris Junior College.
4.3 The conveyance of the property by the City to the Builder shall be by tax sale deed
without warranty with right of reversion.
4.4 LCAD Parcel No. 13802, located at 203 NE 13th Street, is a Lamar County trustee
property and shall be conveyed by the County by a separate deed.
4.5 City and Lamar County hereby transfer property in an "as is" condition and do not
warrant or provide clear title with respect to the aforementioned City Trustee and County Trustee
status of the Property. Owner assumes full responsibility for title insurance for the property and
all new residential improvements thereto by Owner under the terms of this Agreement.
C. Reduced Fees for Building Plan Review and Permitting
4.6 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 one hundred percent (100%) for each Structure constructed pursuant
to this Agreement.
D. Reduced Fees for Water and Sewer Tap Labor
4.7 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
twenty-five percent (25%) where required by the City's Public Works Department.
E. Local Purchasing
4.8 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.
4
E. Default
4.9 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 period set forth herein (by June 8, 2030).
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 8, 2025. It is
the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on
each Structure constructed as it is completed and issued a Certificate of Completion by City.
Consequently, each Structure constructed and completed shall have its own five (5) year
abatement period. The abatement period for each constructed and completed dwelling unit shall
commence on January 1 of the year following City's issuance of a Certificate of Completion on
said dwelling unit and end on the fifth (5a') 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
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, 2025.
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
5.4 Upon receipt of the documentation set forth in Article III and in Section 6.6
herein as to each constructed and completed Structure, City will notify the Lamar County
Appraisal District to begin the tax abatement as to said Structure.
C. Default
5.5 If (a) the Improvements (all seven residential Structures) for which an abatement
has been granted are not completed in accordance with this Agreement (by June 8, 2030); 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 VI of this Agreement.
5.7 As damages in the event of default, and in accordance with the requirements and
discretionary provisions of Section 312.205 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
A. No Conflict of Interest.
6.1 The Owner represents and warrants that neither the Properties nor the Improvements
include any real or personal property that is owned or leased by a member of the Paris City
Council or the Planning and Zoning Commission or any member thereof having responsibility
for approval of this Agreement.
B. Conditions.
6.2 The terms and conditions of this Agreement are binding upon the parties hereto
and their successors and assigns.
C
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 issued a Certificate of Completion by the City, provide the CITY with a sworn
report, written on Owner's letterhead and signed by a designated representative of Owner, which
contains the following information:
(a) A copy of the printout from the Lamar County Appraisal District showing the
market value of the Property prior to the construction of the Improvements;
(b) Detailed description of the Improvements;
(c) A copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by City's Building
Official;
(d) The actual cost of the specific capital Improvements; and,
(e) The date of substantial completion of the specific Improvements as defined in
paragraph 2.1 hereof, and
7
(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 9th day of June 2025 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:
EXL Capital Group LLC
593 W. Commerce St. #5257
Dallas, Texas 75208
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a conr 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 Owner (1) is not engaged in business with Iran, Sudan, or a foreign
9
terrorist organization. Owner acknowledges this Agreement may be
terminated and payment withheld if this certification is inaccurate.
WITNESS our hands this 9t' day of June, 2025.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
THE CITY OF PARIS, TEXAS
im
Mihir Pankaj, Mayor
EXL CAPITAL GROUP LLC
By: ....... .......__
Name:
Title:
10
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared Mihir Pankaj,
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 9th day of June, 2025.
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF
BEFORE ME, the undersigned authority, on this day personally appeared
of EXL Capital Group LLC, 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, 2025.
Notary Public, State of Texas
11
Exhibit 1
12
BoloForms Envelope ID: 281 a7bd8-480-400-974840809H 18da9
PL -INFO -0007 (rev 08/24)
X A S,
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J ".L71
CITY OF PARIS, TEXAS
APPLICATION FOR RESIDENTIAL TAX ABATEMENT (5 in 5)
Applicant:
Name: EXL_PppL Gro- al_G- o- p LLC DBA: EXL Realty Group
Mailing Address: 539 W. COMMERCE ST #525 Dalles.TX75208 _--- . .. . ..... ..... .... . ...... . . ... . .....
........... . ...... .
Telephone M,Email: infoQexlqroup1x rom
;�14-799
1775
-
Owner:
Name: EXL Capital Group LLC
Mailing Address:, 539 W. COMMERCE ST #5257, Dail
Telephone #: 214-799-11775 -------
Property Parcel(s) Proposed for Agreement:
No. LCAD # Adress
DBA: EXL Realty Group
TX 75208
Email: e -gqnI
Lot Block Addition
Improvements:
Type improvements for new Construction (check one): @ SF 0 2F 0 MP
Total Number of Dwelling Units: 5
130k -$150k
Estimated Value of improvements by type: - $-- --
Estimated Start Date of Construction: 03/18/2025 . . . ..........
Estimated Date of Completion of Project(s) 03/1 - 6/2029
Description of Project (attach site plan, floor plan, etc.): Attached
Date: 01/29/
Applicant's Signature: ......... 2025
Date: 01/29/2025
Owner's Signature: .. I . . . .... ......
Page 7 of 7
13833
128 NE 10TH, Paris, TX, 75,460 10 32-B
CITY OF PARIS, BLOCK 32-13, LOT 10
2.
13802
203 NE 13TH, Paris TX 75460 7 32
CITY OF PARIS, BLOCK 32, LOT 7
3.PARIS
13867
1405 E HOUSTON, Paris TX 75460 7 33-A
. . ..................
CITY OF , BLOCK 33-A, LOT 7
. . ...... . ...... . . . .... . . ..............
4,10706
1758 W SHILOH, Paris, TX, 75460 10 5
COLONIAL ADDITION, BLOCK 5, LOT 10
— — - --------
-5---1-0707
SHILOH, Paris, TX, 75460 11 5
COLONIAL ADDITION, BLOCK 5, LOT 11
Add
additional
sheets if necessary. Full Legal Description: Include as an attachment a full legal description with metes and
bounds or a copy of the deed, if available.
Improvements:
Type improvements for new Construction (check one): @ SF 0 2F 0 MP
Total Number of Dwelling Units: 5
130k -$150k
Estimated Value of improvements by type: - $-- --
Estimated Start Date of Construction: 03/18/2025 . . . ..........
Estimated Date of Completion of Project(s) 03/1 - 6/2029
Description of Project (attach site plan, floor plan, etc.): Attached
Date: 01/29/
Applicant's Signature: ......... 2025
Date: 01/29/2025
Owner's Signature: .. I . . . .... ......
Page 7 of 7
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Date: 9/24/2024
Dear Sir or Madam,
EXL Capltal Group LLC has been pre -qualified for a mortgage with Lima One Capital, LLC for $350,000.
The final approval is contingent upon an acceptable appraisal and final review of all outstanding
stipulations by the underwriter. This letter does not guarantee loan approval, nor is It an offer or
commitment to make a loan.
This pre -qualification is valid for 90 days from the date of the original application assuming there are no
changes In EXL Capital Group LLCs flnanclal situation. Please do not hesitate to contact me at 864-404-
8442 or brandon@llmaone.com If you have any questions or concerns.
Sincerely,
Foa
Brandon CampbellSenior Sates Manager
Jr NMLS 1504134
�� lima One Capital
i
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+1864 404 8442��N�. A
(� brandon@Limaone.corn
Q Lima One Website�"L� �
5 nGUYA MAM
#atary. 1D 0.134462348
MY Cammisslon Expire$
F� July 19, 2027
Lima one Capital
201 E- McBee Ave. Suite 300
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Exhibit 2
RESOLUTION NO. 2025-025
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; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on January 27, 2025, the City Council of the City of Paris, Texas passed
Ordinance No. 2025-003 creating Reinvestment Zone 2025-1 designating certain areas
inside the city limits to be eligible for the Residential Tax Abatement Program, said
ordinance re -designating and renaming Reinvestment Zone 2020-1; 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 such incentives as low cost land sales and
residential tax abatements, and adopting guidelines and criteria ("Guidelines") for the
Program; and
WHEREAS, in Resolution No. 2022-003, City Council designated an area within
Reinvestment Zone 2020-1, now named Reinvestment Zone 2025-1, (the "Program Area")
as being eligible for the Program; and
WHEREAS, the City Council has, from time to time amended the Guidelines so as to
better align the Program with desired outcomes; and
WHEREAS, the City Council finds it in the best interest of the city and the Program
Area to provide that new construction under the Program be in accordance with the
general design of homes within individual neighborhoods so as to provide neighborhood
uniformity within the Program Area;
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 for all purposes.
Section 2. The City hereby amends the guidelines and criteria of the 5 in 5
Residential Infill Development Program in conformance with ExhibitA attached hereto and
incorporated herein by reference.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 12th day of May, 2025.
Mi iir P 1ka', Mayor
ATTEST:
J ice Ellis, Deputy City Clerk
APPROVED AS TO FORM:
S h nie H. Hari is, Ci Attorney tep City
PL -INFO -0007 (rev 05/12/25)
5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM GUIDELINES,
CRITERIA & APPLICATION FORM CITY OF PARIS, TEXAS
Revised M@3L1;L 2025
-1. 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. The City further seeks to
ensure that new construction within the Program Area and undertaken in connection with the Program is
consistent with existing housing within the neighborhood in which it is being built so as to provide for a
pleasant aesthetic for both current and new residents in the area.
To achieve this purpose, the City will offer a series of incentives depending on the type of housing to be
constructed (see Section IV herein):
1. The City will provide low cost residential lots in the Program Area in tax foreclosure city receivership
to Applicants for the construction of single-family homes. This incentive is available only for the
construction of single-family homes. if an Applicant obtains properties through other traditional
means within the Program Area, other incentives within this policy may apply.
2. The City will offer three (3) to five (5) year residential tax abatements of City property taxes
attributable to constructed improvements depending on housing type and as reflected in Section IV
herein.
3. The City will offer reduced rates on building plan review and permit fees as reflected in Section IV
herein.
4. The City will offer reduced rates on labor charges on water and sewer tap fees as reflected in Section
IV herein.
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 Applicant will enter into an
Agreement to be approved by the City Council for the new construction of residential 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 or unless the City and Applicant agree to a shorter
period of time, which deviation shall be reflected in the Agreement. All parcels under the Agreement must
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PL -INFO -0007 (rev 05/12/25)
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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, and the City will not maintain a wait list. 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.
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. An Active Agreement is an Agreement under which the Applicant has not yet completed all the
improvements required therein.
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 Immediately Adjacent thereto,
whether foreclosed on due to taxes or not. Also, property located outside the Program Area if foreclosed
on due to taxes.
Immediately Adjacent Property — Property which lies immediately next to the boundary of the Program
Area, including property across a street or intersection or located diagonally therefrom.
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.
Neighborhood Uniformity — Consistency or similarity in the characteristics of homes, properties, and
overall design within a specific neighborhood, primarily concerned with maintaining consistency and
cohesion in architectural styles within a given street, block or larger area.
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.
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PL -INFO -0007 (rev 05/12/25)
Residential Improvements - The construction of new residential structures and all the appurtenances
thereto. This term includes single family, duplexes and multi -family structures.
Value of Improvements - The appraised value of the Residential Improvements as determined by the
Lamar County Appraisal District and as described in the Agreement.
III. ELI '1131LITY 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 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.
Limitations:
1. Maximum of 10 dwelling units per agreement.
2. An Applicant with whom the city has entered into an Active Agreement pursuant to which the City
has conveyed a low-cost residential lot or lots shall not be eligible to apply for an additional
Agreement involving such a conveyance until at least 803'0 of all structures required under the Active
Agreement have been constructed and the City has issued certificates of completion for same. This
80% completion requirement does not apply to Applicants with Active Agreements that do not
provide for the City to convey land. If an Active Agreement applies to a mix of privately owned
property and the conveyance of trustee parcels, the Applicant must have completed construction on
at least 80% of the conveyed parcels to be eligible for a new agreement.
3. Pre -Approved building plans may be accepted. Examples of acceptable architectural styles may be
found in Appendix A attached hereto. Applicants are advised to consult the photographs when
completing their designs to determine whether a given style is consistent with the homes in the
immediate area of any parcel upon which Applicant wishes to build. [Appendix A to be added at a
later date.] The City may deny approval to any design, even if consistent with an example in Appendix
A, if it is not consistent with structures in the surrounding neighborhood of the particular parcel.
4. No zoning change unless there is a substantial change in neighborhood or compatible with the future
land use map.
S. Neighborhood Uniformity—Applicants will submit proposed designs for each dwelling unit sought to
be built as part of the Agreement, Such designs must bear Neighborhood Uniformity in mind and must
conform in basic architectural style to the existing homes in the area in which the structures are to be
built. A design for one neighborhood may not be appropriate for another neighborhood in which the
Applicant seeks to build, so a tailoring of designs to individual neighborhoods is required. No flat or
or shed -type roof lines will be permitted. Submitted designs are subject to the approval of the City,
and once approved, the Applicant/developer/builder/may not deviate from those designs without
prior written approval of the City.
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PL -INFO -0007 (rev 05/12/25)
Is
TEXAS
Where Texans Reach Higher
IV. Incentives—The incentives set forth above are available as follows:
Incentive Table
Incentives......... —
uplex
Multi -Family
Low -Cost
tingjl�e-Family
Residential Lots
fax Abatement
5 -yea at 100 %
y
y °
3- ear at 100/
�/ Basin
3 -Year Decreasing
Year 1: 100%
Year 2: 75%
... ..�m.........
Year 3: 50%
Red uced Building
100%
100% for sprinkled
n Review
Plan
building
-OR-
50% non -sprinkled
building
Reduced Permit
100%
100% forsprinkled
25%
Fees
building
-OR-
30% non -sprinkled
50%
uilding
educed rates on
V2,%
25%
25%
,"`ater/Sewertap
fees
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 available on a strictly first
come, first serve basis and the City makes no warranty on having available properties for this incentive,
nor will it maintain any type of waiting list for available properties. 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. As noted herein, the City will
only convey such properties for the construction of single-family homes.
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 tax abatement on each parcel
on which a dwelling unit or units are constructed and completed in accordance with the foregoing table.
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PL -INFO -0007 (rev 05/12/25)
The abatement will become effective on January 1st of the year following issuance of a Certificate of
Completion following final construction inspection. As provided in the Act, a tax abatement may only be
granted for the value of the Residential Improvements which exceed the base year value of the property
and which are listed in an Agreement between the City of Paris and the applicant, subject to such
limitations as the City of Paris may require. The base value will be set as of January 1st of the year in which
the Agreement is executed. Upon completion of construction, the Applicant shall provide a copy of all
material and: fixture purchase invoices to prove that those materials and: fixtures were purchased locally
within the City of Paris when possible. The tax abatement is available only for improvements made after
the execution of the Agreement. The Agreement may not be approved by the City Council until at least
thirty (30) days after notice of the consideration and possible action on the Agreement has been posted.
Reduced Fees for Building Plan Review and Permitting -The Applicant will be entitled to reduced rates for
building plan review and permit fees as referenced in the Incentive Table.
Reduced Fees for Water & Sewer Tap Labor - The Applicant will be entitled to reduced rates for water
and sewertap laborfees, where required by the Public Works Department, sas referenced in the Incentive
Table for all new dwelling units under agreement with the City.
Claw Back Provision - The Applicant who enters into an Agreement with the City of Paris shall construct
new housing dwelling units on one (1) or more parcels within five (5) years from the effective date of the
Agreement, or a within a shorter time if agreed to by the parties and reflected in 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 underthis agreement against
the property. The Applicant may request approval of an extension for such failure to construct a new
residential dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council
under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to
another individual except by prior approval and re -assignment of the parcel(s) and approval of a new
agreement by the City Council. Failure to meet the requirements of constructing the agreed upon new
dwelling -units within the required 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.
Compliance with all other City Requirements - The Applicant shall be fully responsible for compliance
with all zoning, subdivision platting, and building code requirements as may specifically pertain to the
subject parcel(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.
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V. APPLICATION PROCEDURES
PL -INFO -0007 (rev 05/12/25)
Applications for an Agreement with the City shall be reviewed for completeness. Incomplete Applications
shall not be processed. 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
A. Applicant shall work with City Staff to identify eligible City Trustee or other parcels within the
defined geographic area. City Staff will provide a list and corresponding map from which City
Trustee parcels may be reviewed.
B. For applications seeking the conveyance of one or more low-cost Trustee parcels, the
Applicant shall attach a notarized/verified pre -approval letter or other notarized verification
from Applicant's financial institution stating that the Applicant will have financial capital
available to complete all new dwelling unit construction under the Agreement with the City.
Such verification of financial capability shall be on the letterhead of the financial institution
and will be reviewed over the course of the Agreement. Applications subject to this subsection
B submitted while the Applicant already has an Active Agreement in place, regardless of
whether the Active Agreement involves the conveyance of low-cost Trustee properties, shall
include verification that Applicant has the financial ability to complete the construction
required under both the Active Agreement and the proposed new Agreement.
C. 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.
D. 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..
4. If an application for the 5 In 5 Housing Infill Development Agreement is to be recommended for
approval by staff, then an Agreement as defined herein with the City of Paris will be prepared by the
City Attorney for approval by the City Council.
5. If the Applicant's property is not found to be eligible, the application will be rejected.
6. The City Council reserves the right to amend these policies and guidelines as needed.
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VI.
LEGAL DOCUMENTATION PREPARATION
PL -INFO -0007 (rev 05/12/25)
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 depending on the terms of the Agreement.
3. Effective date and the termination date of abatement.
4. Description of the Residential Improvements, schedule of completion, property description, all
required City approval requirements and a platted lot site plan or sketch of the parcel(s) to be platted
and developed.
5. Applicant agrees to make the new structure or residential improvements available for inspection by
City of Paris, or its authorized representatives, and Lamar County Appraisal District (LCAD) during
construction and upon completion of the project.
6. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes,
recapture and administration.
7. A signed and notarized statement as an attachment to the application agreeing to construct the new
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.
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