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2025-050 - Approving a residential tax abatement & economic development agreement w/ Christopher Martinez d/b/a ASA Electric & Construction, LLC as part of the 5 in 5 Housing Infill Redevelopment ProgramRESOLUTION NO, 2025-050 11 A RESOLUTION OF THE CITY COUNCIL OF THE CITE" OF PARIS, TEXAS APPROVING ANIS AUTHORIZING AN ECONOMIC DEVELOPMENT T AGREEMENT AND TAX ABATEMENT AGREEMENT T WITH CHRISTOPHER SEBASTIAN MARTINEZ D/B/A ASA ELECTRIC . CONSTRUCTION, , LLC PURSUANT TO THE 5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM; NAMING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING G A 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 Councilof 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 leo. 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 five (5) 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 Zonae 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 Christopher Sebastian Martinez D/B/A ASA Electric & Construction, LLC and the property the subject thereof meets the City's Guidelines and Criteria for Tax Abatement adopted by the City of Paris by Resolution No. 2025-025 and will lead to the economic development of the Program Area described in said Resolution No. 2025-025. Section I That the terms and conditions of the proposed Agreement attached hereto as E hib it 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 Exhibift A. Secti"on S. 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 13th day of October, 2025. ... ...... Mihir Pankaj, Mayor '; , ............... 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 CHRISTOPHER SEBASTIAN MARTINEZ DIB/A ASA ELECTRIC & CONSTRUCTION, LLC (hereinafter referred to as Owner). WITNESSETH* # *I loll W 1W forth in, the Guidelines and Cn*,ten*a for the 5 In 5 Housing In.fill Development Program as set forth in City Resolution No. 2025-025. NOW, THUREFORE, in. consideration of the terms and conditions referenced herein, and of good, and, valuable consideration, the receipt and sufficiency of which is hereby acluiowledged, the. City-, and Owner, (collectively referred to as Parties) hereby mutually agree as followsr. 1.1 The Recitals set forth hereinabove are incorporated into this Agreement for all wffff� 11. 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, 111. Terms Applicable to both the Economic Development Agreement and the Residential Tax Abatement Agreement: A. The Prop erti es—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 descn*bed in Exhibit I attached hereto and incorporated herein by reference, which Properties *thin Reinvestment Zone No. 2025-1 and within the area set forth in the Program: are wi * LCAD# 15463, City of Paris Block 97, Lot 5,3r' St. NW & LCAD# 16167, City of Paris Block 133, Lot 10, 542 0 LCAD# 113 64, Few Addition Block I . Lot 12, 1209 17" St. NW 0 LCAD# 22029, Park Addition Block 1. Lot 5, 7hSt. NW LCAD# 15228, City aBlock 87, Lot 16., 725 7" St. NW 3.2 The Properties listed are Tax Foreclosure City Trustee (City Trustee) status properties with the exception of LCAD# 15228, which is a Lamar County Timstee status property. B. Cons lidera d" on—Improvements 3.3 The Improvements to be completed consist of five (5) single family home structures (the Structure or Structures) on the above described Properties as more fully described in the application for the Program attached hereto and incorporated herein as Exhibit 1. 2 Q I. 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 October 13, 2025 and shall continue for a period of five (5) years ending on October 12, 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-Teferenced 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 by and between the City of Paris, Texas, Lamar County, Texas, Paris Independent School District, and Paris Junior College (approved by: the City of Paris, City Council agenda of January 24, 2022, item #22; Paris Junior College, Regents' agenda of January 24, 2022, item #6; Lamar County, Commissioners Court 9 1 agenda of January 24, 2022, item #2; and the Paris Independent School District, Trustees' agenda of January 24, 2022, item #4). 4.3 The conveyance of.the property by the City to the Owner shall be tax sale deed without warranty and with right of reversion, 4.4 City hereby transfers the property in an, "as is" condition and does not warrant or provide clear title with respect to the aforementioned City 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 4.5 hi consideration for Owner's construction and completion of the above -referenced Impiovements, 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 constnicted pursuant to is Agreement. D. Reduced Fees for Water and Sewer Tap Labor 4.6 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 mcnty-five percent (25%) where required by the City's Public Works Department. E. Local Purchasing 4.7 As further consideration for the incentives granted herein, where possible, OvMer shall purchase building materials and fixtures from vendors located within the City of Paris. 4 4.8 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 October 12, 2030). V, Terms Specific to the Residential Tax Abatement Agreement Texas Tax Code Chapter 312 A. Reinvestment Zone,; NAICS Code. 5.1 The properties subject to this residential Tax Abatement Agreement are located within City of Paris Reinvestment Zone No. 2025-1. For purposes of reportiniz this Tax Abatement Agreement to the Office of the Comptroller of the State of Texas, the applicable NAICS Code is 2361. 5.2 The term of this Tax Abatement Agreement shall commence on October 13, 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 it's own five (5) year abatement period, The abatement pen'od for each constructed and completed dwelling unit shall commence on January I of the year following City's issuance of a Certificate of Completion on said dwelling unit and end on the fifth (5th) 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. C', Abatement 5 eoEconomic ct to the tenns and cnditi"ons of this , tievelopment Agreement and 9 Tax Abatement Agreement, in further consideration for the construction and completion of the Improvements required herein (new construction of five (5) single-family homes) and subject to the rights and holders of any outstanding bonds of the City, a portion of the maintenance and operations (M & 0) 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 detennined to be due as a result of any such protest or 5 C1, Default row s applicable � � , eAgreementa a b the'T,ax Abatement A. No Conflict of Interest. includepersonal �p m . ° f the 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, Compliance Provisiolls 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 reasonabl e right of access to the Property to inspect the Improvements in order to insure that the const:ruction 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 Improvemients, the City shall have the right to enter the Property and conduct an, inspection of the completed Improvements. D. Initial and Annual Reporting.. (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; W (c) A copy of or identification of plans and specifications of constructed a improvements and the location of the same for inspection by Citys 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 (f) Receipts showing that the purchase of building materials and fixtures for the construction were made *om vendors within the City of Paris, when possible. N6 OWTIER: Christopher Sebastian 1\4artinez d/b/a A.S.A. Electric & Construction, LLC 1025 Kings Row McKu*mey, Texas 75069 (For the purposes of reporting this Agreement to the Office of the Comptroller of the State of Texas, Owner's telephone number is 469-918-9608) CITY: CITY OF PARIS, TEXAS Attn: City Manager P, 0. Box 9037 Paris, TX 75461-9037 With a coU to: City Clerk, City of Paris, Texas (Address same as above) olk ill T* Y4dM d i. Pursuant to Section 2271.002 of the Texas Govemment 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. Pursuant to SB 13$ 87th Texas Legislature, Owner certifies that either (1) it meets an exemption criterion under SB 13, 87th Texas Legislature; or (ii) it 9 does not boycott energy companies, as defined in Section I 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 M*accural W. 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 disefirninate against a firearm entity or firearm trade association, as defined in Section I of SB 19, 87th Texas Legislature, and will not discriminate against a firearm entity or firearm trade association during the term of the Agreement. Owner acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. iv. Pursuant to Subchapter F, Chapter 2252, Texas Government Code, Owner certifies Owner (1) is not engaged in business with Iran, Sudan, or a foreign terrorist organization. Owner acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. WITNESS our hands this 13thday of October, 2025. FOAV-Vl--:- -ILII Janice Ellis, City Clerk --------- -- Stephanie H. Ham* s, City Attorney By: Mihir Pankaj, Mayor CHRISTOPHER SEBASTIAN MART1NEZ d/b/a ASA ELECT I+ & CONSTRUCTION, LLC By: Chistopher Sebastian Martinez C# STATE OF TEXAS COUNTY OF LAMAR Given, under my hand and sea] of office this 136 day of October, 2025. .. .... ...... . Notary Public, State of Texas BEFORE ME, the undersigned authority, on this day personally appeared Christopher Sebastian Martinez d/b/a A.S.A. Electric & Construction, LLC, known to me to be the person whose name is subscribed to the foregoing M*strment, 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 October, 202 5. Notary Public, State of Texas W ON ILAF TEXAS r ➢ l " / j �,//ui 'i f / ANSI t;No p PAK APPLICATION SOS RIDENTIAL� S In 5 r7 ,,xMre �INyNMNN4 000(0', ri ?n ASAW^I U-%- moomw.Pf" lot As.,-s/ � ', 61/ lf;�momo rkrYUYu a9r oNu�aw' namJfxa«1 a1)emrr'- Mm4ne 40 2 1 1/ Erma. 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This approval is subject to all conditions being met under the borrowing agreement, If you need further information, please feel free to contact me at 469-766-7548. �a Ja Wim.e President 7 777K Alf, i 40 . ...... .. ... I ..... .. .. .. ............ ---, . ......... ... . .. .. . . . .. . . . . . ao . . ........... ........... NV I OVy lull e. . . . . .. . .. ............ NN NN,f 7 . .. .. ...... 610 �IINa .. .. .... ... )w', 149143H 10013, Xe" :48T, 14, 111 dl wo. . . II v� of ,V`P I�. ( u ,o III f� f . . .......... yyy .... . ..................... . ..... . W 0 �...o.o..o.o.o.o,o,o,o�. . . .. .. . l ''11 , 5 1 "almoll", u '"I .... .... .. . 1, ..... .. . . . .. .... .... . . .. . .. .. .... . .. . . .. . ..... Ir I If 110 .. ..... .. JI I �y l ` 1 e Ir II 0,,All 16 ... . . .. yi , . .... .. .. .. .......... . . ..... ... ... .. tO I . ... .. .. . . ,,u ., o ..... .. ..... III IN" ,II ............. .......... ........ J'A . . . . . ........................ 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