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2026-011 - Amending the tax abatement agreement, as previously amended, with We’re Going to Paris, LLC on the property located at 6354 Northwest 7th Street, Martin St., Addition Block A, LotsRESOLUTION NO. 2026-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING A SECOND AMENDMENT TO THE RESIDENTIAL TAX ABATEMENT AGREEMENT BY AND BETWEEN THE CITY OF PARIS, TEXAS AND WE'RE GOING TO PARIS, LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on May 9, 2022, the City Council of the City of Paris adopted Resolution No. 2022-033 approving a Residential Tax Abatement Agreement (the "Agreement") by and between the city and We're Going to Paris, LLC ("Owner") relating to the renovation and redevelopment of the property in Northwest Paris commonly referred to as the Westgate Apartment Complex comprising 20 separate buildings; and WHEREAS, said Agreement provides that the Owner was to have completed the project within 12 months of the effective date thereof, and WHEREAS, due to issues with financing and other concerns, Owner was unable to commence the improvements required under the Agreement and requested additional time to complete same; and WHEREAS, on December 11, 2023, by Resolution No. 2023-051, the City Council approved an amendment to the Agreement (the "Amendment") extending the deadline for completion of the improvements to May 31, 2024 providing certain other conditions were met; and WHEREAS, Owner was not able to commence the improvements in time to complete same by the May 31, 2025 deadline and has asked for an additional extension until June 15, 2027;and WHEREAS, Owner has commenced the improvements, pulling permits on all 20 buildings, and hopes to have a leasing office on one of the residential buildings completed by the end of April, 2026; and WHEREAS, the City Council continues to believe that the renovation of the property will provide much needed housing for residents of the city and will contribute to the economic redevelopment of the Northwest quadrant of the city; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved and incorporated herein by reference for all purposes. Section 2. That the terms of the Residential Tax Abatement Agreement as amended by the original Amendment and by the Second Amendment attached hereto as Exhibit A and the property the subject thereof continues to meet the city's Guidelines and Criteria for residential tax abatements adopted by the City of Paris by Resolution No. 2021-012 (in effect at the time of the approval of the Agreement) and as readopted on April 10, 2023 by Resolution No. 2023-018, and will lead to the economic development of the city. Section 3. That the terms and conditions of the proposed Second Amendment, 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 Amendment 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. PASSED AND APPROVED in a regularly scheduled meeting of the City Council of the City of Paris, Texas on this the 23rd day of February, 2026. ATTEST: r, Deputy ROVED AS TO FORM. d ,,, Mihir lranfkaj, Mayor CITY Clerf� gRIS, Stephanie H. Harr"is, City Attorney Exhibit A SECOND AMENDMENT TO RESIDENTIAL TAX ABATEMENT AGREEMENT We're Going to Paris, LLC WHEREAS, the City of Paris, Texas ("City"), a Texas home rule municipal corporation, and We're Going to Paris, LLC, a Texas limited liability company ("Owner"), acting by and through their respective authorized officers, have entered into a Residential Tax Abatement Agreement (the "Agreement") with an effective date of May 9, 2022 (the "Effective Date"), a copy of which is attached hereto as Exhibit 1 and incorporated herein by reference; and WHEREAS, said Agreement related to the rehabilitation of property in Northwest Paris commonly referred to as the Westgate Apartment Complex (the "Properly"), provided that as consideration for said tax abatement, the Owner was to have completed the required improvements to the real property within twelve (12) months of the Effective Date; and WHEREAS, twelve months from the Effective Date was May 8, 2023; and WHEREAS, as of December 11, 2023, due to issues with financing and other considerations, the Owner had not begun construction on the improvements; and WHEREAS, on December 11, 2023, the City approved and executed an Amendment to Residential Tax Abatement Agreement (the "First Amendment"—attached to Exhibit 1 hereto) to provide for a five (5) year abatement period to begin on January 1" of the year following the City's issuance of a certificate of completion contingent upon Owner's completion of certain milestones by February 12, 2024; and WHEREAS, Owner failed to timely meet those milestones, but in the intervening period has pulled permits for all of the buildings in the complex, has begun substantial work, and is due to complete construction of the leasing office and one residential building in April of 2026; and WHEREAS, the City continues to believe that the restoration of the Property will lead to additional economic development in the Northwest quadrant of the City and provide valuable housing opportunities for its residents, and thus desires to provide additional time to the Owner to complete the improvements; and WHEREAS, an extension of the timelines set forth in the First Amendment will allow Owner to retain financing and complete the entire project, improving the neighborhood and substantially increasing the number of rental units available in West Paris; CAA "►��-SV-M W Section 1. The recitals contained hereinabove are incorporated herein for all purposes. Section 2. The effective date of this Second Amendment shall be February 23, 2026. Section 3. Article I, Sec. A ("Term"), paragraph 1.1 (incorrectly labeled as 4.1 in the Agreement) as amended is hereby further amended to read as follows: 1.1 The Effective Date of this Agreement is May 9, 2022. The five (5) year abatement period set forth herein shall commence on January 1st, 2024, of the year following City's issuance of a Certificate of Completion and is contingent upon Owner's completion of all the Improvements required herein by May 31, 202 -June 15, 2027. tax abatement is also eeiAiagei# upon OA%er's oempleting of one ef the felloA4ag eendifiens on or before- Febraar 12, 22024: .,m...,neing .,enstruetion o .... hnprevemeift er- (2) seeur4ag the entire Property by boar -ding up the buildings die-Foon so buildings up tbretigh eempletien of the This Agreement shall terminate upon the expiration of the abatement period unless otherwise terminated by default or agreement of the Parties. Section 4. Article III, Section 3.5 is hereby amended to read as follows: 3.5 Owner agrees and covenants that it will diligently and faithfully complete construct the Improvements referenced herein in a good and workmanlike manner no later than May 31, 2025. June 15, 2027. Owner further covenants and agrees that construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations or Owner will procure a valid waiver or variance thereof. Section 5. Article IV, Section B ("Default"), paragraph 4.5 is hereby amended to read as follows: 4.5 If (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement no later- tha May 31, 205 by June 15, 2027); 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 Agreement, then Owner shall be considered in default of this Agreement. In the event Owner defaults in its performance of either (a), (b), or (c) above, then City shall give Owner written notice of such default and if Owner has not cured such default within sixty (60) days of said written notice, this Tax Abatement Agreement may be terminated by the City. Notice of default shall be given in accordance with Article V of this Agreement. ATTEST: Skylar Unger Deputy City Clerk APPROVED AS TO FORM: Stephanie H. Harris City Attorney CITY OF PARIS By: Mihir Pankaj Mayor Date Signed: WE'RE GOING TO PARIS, LLC go Seth Bame, Manager Date Signed: EXHIBIT 1 AMENDMENT TO RESIDENTIAL TAX ABATEMENT AGREEMENT We're Going to Paris, LLC WHEREAS, the City of Paris, Texas ("City"), a Texas home rule municipal corporation, and We're Going to Paris, LLC, a Texas limited liability company ("Owner"), acting by and through their respective authorized officers, have entered into a Residential Tax Abatement Agreement (the "Agreement") with an effective date ofMay 9, 2022 (the "Effective Date"), a copy of which is attached hereto as Exhibit 1 and incorporated herein by reference; and WHEREAS, said Agreement related to the rehabilitation of property in Northwest Paris commonly referred to as the Westgate Apartment Complex (the "Property"), provided that as consideration for said tax abatement, the Owner was to have completed the required improvements to the real property within twelve (12) months of the Effective Date; and WHEREAS, twelve months from the Effective Date was May 8, 2023; and WHEREAS, due to issues with financing and other considerations, the Owner has not begun construction on the improvements; and WHEREAS, the City continues to believe that the restoration of the Property will lead to additional economic development in the Northwest quadrant of the City and provide valuable housing opportunities for its residents, and thus desires to provide additional time to the Owner to complete the improvements; and WHEREAS, in consideration for this extension of the deadline for completion of the improvements, the City will require that either construction is commenced or the property is properly secured by February 12, 2024; WITNESSETH: Section 1. The recitals contained hereinabove are incorporated herein for all purposes. Section 2. The effective date of this Amendment shall be December 11, 2023. Section 3. Article I, Sec. A ("Term°'), paragraph 1.1 (incorrectly labeled as 4.1 in the Agreement) is hereby amended to read as follows: 1.1 The Effective Date of this Agreement is May 9, 2022. The five (5) year abatement period set forth herein shall commence on January lst, ''� of the year following City's issuance of a Certificate of Completion and is contingent upon Owner's completion of all the Improvements required herein by May 31. 2025. Said tax abatement is also contingent upon Owner's com 1p etiria of one of the following two conditions on or before February 12, 2024: (1)_qommencinu. construction of the Imi) ' rovements: " or " (2 ' ) securing the entire Property by boarding up the buildings thereon so as to j?jqyentjjersop or persons from gaining entry thereto and continuing= to secure the buildings,�hr�ouglj completion of the Improvements. This Agreement shall terminate upon the expiration of the abatement period on -May -&,-2-G9 unless other -wise terminated by default or agreement of the Parties. Section 4. Article III, Section 3.5 is hereby amended to read as follows: 3.5 Owner agrees and covenants that it will diligently and faithfully doom jjlctc eanotiret the Improvements referenced herein in a good and workmanlike manner no later than Maw, 31, 2025 Owner farther covenants and agrees that construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations or Owner will procure a valid waiver or variance thereof. Section 5. Article IV, Section B ("Default"), paragraph 4.5 is hereby amended to read as follows: 4.5 If (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement date4ieFesf no later than Mav 31. 2025); 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 Agreement, then Owner shall be considered in default of this Agreement. In the event Owner defaults in its performance of either (a), (b), or (c) above, then City shall give Owner written notice of such default and if Owner has not cured such default within sixty (60) days of said written notice, this Tax Abatement Agreement may be terminated by the City. Notice of default shall be given in accordance with Article V of this Agreement. CITY OF PARIS 4;,t-,4nald B. Hughes Mayor Date Signed: ,X%jj I I I I fill//// JIRE C17-k7ll, ................... ATTEST: ice Ellis .ity Clerk VED AS TO FORM: H. Harris City WE'RE GOING TO PARIS, LLC LI'm Sethi TM47ager Date Signed: gned: .1 /11/2024 THE STATE OF TEXAS COUNTY OF LAMAR RESIIDENTUL TAX ABATEMENT AGREEMENT This 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 WE'RE GOING TO PARIS, LLC (hereinafter referred to as "owner"). WITNESSETH; WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on April 12, 2021, the City Council of the City of Paris, Texas passed Resolution No. 2021-012 reauthorizing the city to become eligible to participate in residential tax abatements and approving guidelines and criteria for the program; and WHEREAS, Owner has submitted an application for a residential tax abatement related to its purchase and rehabilitation (the "Improvements") of the property located at 635 N.W. ')s' St., commonly referred to as the Westgate Apartments (the "Property"); and WHEREAS, city staff has reviewed the application and the location of the above dmeribed improvements (hereinafter " Improvemen&s and has determined that the property is located within the boundaries of Reinvestment Zone 2020-1 and meets the requirements for Improvements set firth in guidelines and criteria as set forth in Resolution No. 2021-012; and WHEREAS, the property has long been an a dilapidated condition and the Improvements proposed thereto will have a significant impact on the surrounding neighborhood and on West Paris in general thus justifying an upward deviation from the guidelines and criteria; and WHEREAS, furthermore, the restoration of the Property will help to alleviate a housing shortage within the city; 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. Term A. Terns 4.1 The Effective Date of this Agreement is May 9, 2022. The five (5) year abatement period set forth herein shall commence on January 1, 2024, the year following City's issuance of a Certificate of Completion. This Agreement shall terminate upon the expiration of the abatement period on May 8, 2029 unless otherwise terminated by default or agreement of the Parties. 111. The Property .res to be Improved 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Properties located in Paris, Lamar County, Texas more fully described in Exhibit 1 attached hereto and incorporated herein by reference, which Property is within Reinvestment Zone No. 2020-1 and within the area set forth in the Program: • Martin St Addition Block A, Lots 1-20, located at 635 NW 71h St., Paris, Texas, LOAD #129332, as more fully set forth in Exhibit 11 hereto, which is incorporated by reference as if fully set forth herein. III. Consideration—Improvements 3.1 The Improvements to be completed consist of the rehabilitation of the dilapidated apartment complex located on the Property comprising twenty (20) separate structures, said Improvements to include: • Remodel of existing apartment project with new kitchens, flooring, drywall, mechanical, plumbing, electrical, and roof. 3.2 The total minimum investment in the Improvements shall be ONE MILLION EIGHT HUNDRED THOUSAND NO1100 DOLLARS ($1,800,000.00). 3.3 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. 3.4 Owner shall allow city inspectors access to the Property and Improvctnents throughout construction and completion of Improvements. 3.5 Owner agrees and covenants that it will diligently and faithfully construct the Improvements referenced herein in a good and workmanlike manner within twelve (12) months of the Effective Bate of this Agreement. Owner further covenants and agrees that construction of the Improvements w=ill be in accordance with all applicable state and local laws, codes, and 2 regulations or Owner will procure a valid waiver or variance thereof. 3.6 Owner shall contact City Building Official for final inspection once Improvements are completed and obtain a Certificate of Completion for the Property. 3.7 Owner may not use the parcels described in Section 2.1 and conveyed to Owner pursuant to the terms of this Agreement for any other purpose other than to construct the Improvements set forth in this Article. Use. of any parcel for any other purpose than residential dwelling units shall constitute a separate act of default of the Agreement and will trigger the default provisions and remedies set forth hereunder. IV. Tax Abatement A. The Abatement 4.1 Subject to the terms and conditions of this Agreement, and 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 ad valorem property taxes assessed upon the Improvements 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 2.1 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 tris 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, 2022. 4.3 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, in the event of any conflict between this Agreement and the Guidelines Wand for the Program attached hereto as Exhibit 2, this Agreement shall control. B. Default 4.5 If (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement (within twelve (12) months of the effective date hereof}; or (b) Owner allows its taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such; or (c) Owner materially breaches any of the other terms, provisions or conditions of this Agreement, 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 3 Article V of this Agreement. 4.6 As damages in the event of default, and in accordance with the requirements of Section 312.205(aX4) 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 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. V. Additional Terms A. No Conflict of Interest. 5.1 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. 5.2 The terms and conditions of this Agreement are binding upon the parties hereto and their successors and assigns. 5.3 It is understood and agreed between the parties that the Owner, in perforating 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 finther 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 and, to the extent permissible by law, the City agrees to indernnify and hold harmless the Owner therefrom. C. Compliance Provisions 5.4 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 residential Improvements. Any such audit shall be wade 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 Ouner's property. Upon request, the Owner wilt provide the City with a detailed list of all Improvements, including a 4 list of materials used and cost thereof. 5.5 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, 5.6 The Owner further agrees that it will, within thirty (30) days of completion of the Improvements and issuance of 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 (f) Receipts showing that the purchase of building materials and fixtures from for the construction were made from vendors within the City of Paris, when possible. 5.7 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 and shall be due on each yearly anniversary of the Initial Report required by Section 5.6. 5.8 Owner recognizes that these reporting requirements are material conditions of this Agreement, and a failure to submit such reports when due will constitute a breach hereof. E. Authority to Contrast. 5.9. This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 91 day of May 2022, which further authorized the City Manager to execute the Agreement on behalf of the City. 5 5.10 This Agreement was entered into by Owner pursuant to the authority granted to the authorized official whose signature appears below. 5.11. 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. 5.12 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. 5.13 This Agreement, except by operation of law, shall not be assigned or transferred by Builder, without the prior written consent of City, which consent shall be at the sale discretion ofthe City. 5.14 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: BUILDER: We're Going to Paris, LLC Attn: Seth Bame 6060 N. Central Expressway Ste. 770 Dallas, Texas 75206 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O, Box 9037 Paris, TX 75461-9437 With a CORI to: City Clerk, City of Paris, Texas (Address same as above) 5.15 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. 5.16 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 daic ,4 hexeF, i,,Jcn� Vnu �4;'f`kAa,�; ou, Ix'; ei5charFee, e4e-rcc-!w` ea "y IUVW wirw by to 6"wUpw scmump Agwd bcth illc' Spvdk,4Y Yell Qw lilt AEPWnrys oijy an' �`,irJ; T(,A 1-,- ndt"frr2 tra�c, ,w intei—pretwd-oni cf this Alrecinru�-nn". or arny, on", pfcvIckja51. -,iz Agp-v-;m)(,w: 1�-, p-t,-fd)amp-ble in Lamar Coun, Ara, emd W be rwcmfm,�` romrJ-w,-d ail-ld in. vdvn the ?a° ofVwaMfr F' o�TFxzs, 7he ;w v NO; Do Whis A afj.� If apjJ-f r, 17-10 W47-10 to to WN P. 1',-i,ys 0v1,-nr,.-,, uc` arvI, 7 V c fair an, y WUMA Moog wd", 41df. ; Wffl lie exclusWaly M th(, c�--,uris of Lanw-,,xunty, Texaq W nay SM Coal wdoG W 4 lk It A MAO (Owi kbr & Twomm A Q EST L .2022- -DE C,77Y TF We're Going to Paris, LLC 0 (Ti0e) BEFORE MIE4 the undersigned authority, on this day personally appeared Grayson Path, City Manager of the City of Paris, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the sante for the ptoses and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of May, 2022, i c, Si a ie�a f. Texa s� Nour% Pu BEFORE ME, the undersigned authority, on this day personally appeared Seth Bame, of We're Going to Paris, LLC, known to me to be the person whose nwiae is su&if d to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and comideration therein expressed and in the capacity therein stated. GFVEN UNDER MY HAND AND SEAL OF OFFICE this k L day of May, 2022. 49 TAOAM BRADLEY notary ID 07049570 P", 'i'dtaryPublic, State of Texas, septembm 'Z9, 2625 LAMAR TEXAS LEGAL DESCRIPTION: BEING AN 7.936 ACRE TRACT OF LAND SITUATED IN THE ASA JARMAN SURREY, ABSTRACT NO, 479, LAMAR COUNTY, TEXAS, AND BEING ALL OF MARTIN BLOCK ADDITION, BLOCK A, LOTS 1-20, AS RECORDED IN ENVELOPE 439-B, OFFICIAL PUBLIC RECORDS, LAMAR COUNTY, TEXAS. SAID 7.938 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A 112 IRON ROD (N: 7302105.79, E: 2861328.28) FOUND FOR THE WEST -MOST NORTHWEST CORNER OF SAID 7.936 ACRE TRACT. THENCE N 34°39'02" E, A DISTANCE OF 88.79 FEET TO A 112" IRON ROD FOUND FOR THE NORTH -MOST NORTHWEST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND PK NAIL BEARS N 34'5532" E, A DISTANCE OF 12.48 FEET (TIE); THENCE N 88'48`18" E, A DISTANCE OF 559.18 FEET TO A 1" IRON ROD FOUND FOR THE NORTHEAST CORNER OF SAID 7.936 ACRE_ TRACT FROM WHICH A FOUND "X" IN CONCRETE BEARS N 27045'57" E. A DISTANCE OF 5.72 FEET (TIE); THENCE S 02"4110" E, A DISTANCE OF 554.56 FEET TO A 112" CAPPED IRON ROD "POGUE ENG&DEV" FOUND FOR THE SOUTHEAST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND 318" IRON ROD BEARS N 40°36'32" W, A DISTANCE OF 4.56 FEET (TIE); THENCE S 88045'12" W, A DISTANCE OF 619.08 FEET TO A 112" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICE" SET FOR THE SOUTHWEST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND 1" IRON ROD BEARS N 02012'01" E. A DISTANCE OF 7.99 FEET (TIE); THENCE N 01659'00" W, A DISTANCE OF 493.00 FEET TO THE POINT OF BEGINNING, CONTAINING 7.936 ACRES OR 345.707 SQUARE FEET OF LAND, MORE OR LESS. 3�.5, "��. ��[3¢eY{�a fqq�1 ..� ` - L �.:> Yy<.aH�y4e Ott• 1 ois.L' Irur � . � .an.M(1' u ' � 1 �� L 1 t: �0119A, ee v � •., ,•:3ii <� • "r�„_ �''m.4•t.�ig ` e t �� yAo- At yZ,,,,b+�'nYi!` t l� ' � �q � � � � � ���F�S I F) i w 1.� � } � . � .!('+jj v S�x ! • ,i�, _ r[7 � _. � �1 ��;a � �s i � J`. � �t• � i �1 �� � �x�'I¢y Mit )� 11 �� �1 Z�t �`�� � '�L �;' t° .. 43 <—"� ae rl ����`<.� y. ,i � S d ; � � �`�•tiles �1 6�p di 1'p ���R � �� t� a '" - i I J!1 1 _ >Fk�r.:"11atxtt; •`�,�� iv f ��, A L r. ;fit a, . ;Y,�+ rte' irk z f 1 �. t•.i i , ai � � • ' r' .� f€ ,t ^!II! r 4tr �. . -;FY ,[�'j _i '�! ))))i` `�tr°e w,f, n, frAN.>Fc i-•_ i�i�Y .s t t ^{, i Rc � «q q � �`� ,Ai • t i• 1 �" Sae ',' � r,;, ��_, ' '� •rP_>F � � �', iii Y; . } K ��, i}' !�! �.1 � ti ''� p a X of t � •a d"{ x; ,a � I" �"`_ >: 'a lip e ¢ { r ��^ p¢C01°I 1 � ���.. ! <' f 1 •� A'i � N... h S -1 lr , i E�8 'Y � d 1 f .,•-� ts�ly�'�. SII � ! ���f t �a-����`'��.i� ,j '� � � �.r � X r �+, R , Ja } .'." ., �_ .—...a._..... ery a 9R�o- i 4 y �v RESOLUTION NO. 2021-,012 ARESOLUTIONOFTHE CITY COUNCIL OF THE CITY OF PARIS, Tires RE -AUTHORIZING THE CITYTO BECOME ELIGIBLE TO PARTICIPATE IN RESIDENTIAL TAIL ABATEMENTS AND APPROVING GUIDELINES AND CRITERIA FOR THE RESIDENTIAL TAX ABATEMENT PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATA. WHEREAS, Sec. 312.002 ofthe Texas Tax Code requires local tasingentities to state their Intent to participate in abatement agreements and to adopt guidelines and criteria for granting tax abatements; and WHEREAS, on October 14, 2013 in Ordinance No. 2013-036, the City Council designated Reinvestment Zone No. 2013-1 for residential tax abatements; and WHEREAS, concurrent with Ordinance No. 2013.036, the City Council also approved Resolution No. 2013-036 electing to be eligible to participate In a residential tax abatement program and approving Guidelines and Criteria for Residential Tax Abatement Program as required by statute; and WHEREAS, on February 9, 2015, the City Council -passed Ordinance No. 2015-002 amending Reinvestment Zone 2013.1 for Residential Tax Abatements to expand it to include all Council Districts in the City and designated the new reinvestment zone as Reinvestment Zone No. 2015-1; and WHEREAS, on January 9, 2017, the City Council approved Resoulution 2017-001 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, on April 22, 2019, the City Council approved Resoulution 2019-013 re- authorizingthe City to become eligible to participate in residential tax abatements: and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, in 2021, City Council re -authorized Reinvestment zone 2 015-0 1 and renamed it Reinvestment Zone No. 2020-1; and WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criterla for tax abatements are effective for two years from the date adopted; and WHEREAS, the City Council continues to desire to participate in a residential tax abatement program in the City of Paris and has been presented Guidelines and Criteria for a Residential Tax Abatement Program; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL Of THE CITY OF PARIS, TEXAS, THAT - Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City hereby elects to be eligible to participate in a residential tau abatement program and adopts the Guidelines and Criteria for Residential Tax Abatement Program attached hereto and incorporated herein as Exhibit W, Section 3. This resolution shall become effective from and after the date ofpassage. PASSED AND APPROVED this 12* day of April, 2021. ATTEST. 'fFlice Ellis, City Cleric APPROVED AS TO FORM: r Steph nie H. Harris, City Attorney steve&j Cliilord,,tt.D., Mayor RESIDENTIAL TAX ABATENBUgT PROGRAM GUIDELINES AND CRITERIA CITY OF PARIS* TEXAS APRIL 1i2, 2021 I. GENERAL PURPOSEAND tDBJECTIVES JU City of Paris will offer residential tax abatement as a stimulus for economic development in designated reinvestment zones located within the corporate city limits of the City of Paris, Texas. The policy of the City is to grant residential tax abatement for new residential structures and modernization, rehabilitation or expansion of existing residential structures that meet minimum investment threshold and comply with these Guidelines and Criteria All applicants shall be considered on a case-by-case basis. IL IDEFMTION OF TERMS Act -means the Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann, 312001 et, seq., as amended from time to time. Agreement means a contractual agreement between an applicant and the City of Paris for the purposes oftax abatement. Applicant -means an owner of real property or his authorized agent located in a reinvestment zone or proposed reinvestment zone who requests tax abatement in accordance with these guidelines, Base Year Value — means the assessed value of eligible property on January 1, preceding tate date of execution. Eligible Property - means new shuett" or residential improvements located in a designated Reinvestment zone. Motlermlrationi — means the replacement, expansion and/or upgrading of single-family residential improvements for the purpose of moond1 ioning, refurbishing or expanding a single-family residence. New Stmaure - means residential improvements made to a property previously undeveloped which is placed into use by means other than or in conjundien with expansion or modornizetion. Relnvestmerat Zone - means an area designated in accordance with the .Act by the City of Paris. Only property in a Reinvestment Zone may be eligible for tax abatement. Residential hitprove ments - means the construction ofnew single-flimily residential structuras and all the appurtenances thereto, and includes modernization of existing structures. Thl$ term does not incleuie duplexes or multi -family stnrctures. Totnl Facility - means all improvements constructed. Page 1 of 5 Value of Improvements — means the appraised value of the residential improvements as determined by the Lamar County Appraisal District and as described in the tax abatement agreement. HL ELIGIBILITY MS%GUIDELUMS Any veal property located within a designated reinvestment zone and zoned by the City of Paris for single-family residential development is eligible and may apply For residential tax abatement. As provided in the Act, abatement may only be granted for the value of the Residential Improvements which wMeed the base year value of the property and which are listed in an Abatement Agreement Wwen the City of Paris and the property owner, subject to such limitations as the City of Paris may requiem. Minimum Itayestmen — To be eligible for residential tax abatement, an applicant must construct a now structure on their property or make residential improvements to an existing structure in a minimum amount of twenty percent (20%) of the appraised value of tate property as of January 151 of the year that the tax abatement agreement between the applicant and the City is signed. Teras and Pereentage of Abatement - An applicant who has satisfied all the criteria and guidelines for residential tax abatement as set out herein, will be eligible for tax abamnent in accordance with the schedule below. Abatement will become effective in the tax year following the date of completion of the improvements and appraisal of the improvements by Lamar County Appraisal District (LCAD). IV. SCiiEDUlLE OF A BAT7EIi+l INIT I" YEAR AWARAM 1 100'x6 2 100'!''0 3 SWO 4 6tl% 5 4U°/n 6 Zero'/0 *Abatement is applied only to the increased value of the residential improvements that exceeds tate base year value as determined by the LamarCounty Appraisal District. V. A►iE'FLICATION PROCEDiJ1gE Applications for residential tax abatement shall be reviewed for completeness. City staff shall determine whether the application satisfies guidelines and criteria and Staff may request additional infarmation or documents from Applicant. City Staff will make final recommendations on each application to City Council. Any person, partnership, organization, corporation or other entity desiring a residential tax abatement to encourage development within a designated Reinvestment Tone shall comply with the following procedural guidelines. All tax abatement applications shall be evaluated on their own merits within the parameters of these Guidelines and Criteria. Preliminary Application Steps Applicant or applicant's agent shall submit an "Application for Residential Tax Abatement' contemporaneously with the application for a building permit. if the building permit Is for new single family residential construction or expansion or Page 2 of 3 remodeling of a single-family residential structure in an amount that would snake the owner eligible for residential lax abatement, then staff will provide applicant with a form applieWon for residential tax abatement. If the applicant for the building permit is not the owner of the real estate and does not make application for residential tax abatement on behalf of the owner, the city slaif shall notify the owner (according to Lamar County Appraisal District records) by ceatif' ted mail, return receipt requested, that residential tax abatement must be filed with the City within ten (10) business days of receipt of the notice. B. If applicant chooses not to apply for residential tax abatement at the time that the building permit is issued, or if the owner faits to respond to the written notice of availability for residential tax abatement, the opportunity for residential tax abatement is waived. City staff shall make a record to reflect owner's election not to participate in the program or to docu c:nt that owner did not respond to City's notice of opportunity to participate in the residential tax abatement program. The refusal or waiver to participate in residential tax abatement by the owner or applicant shall be binding on subsequent owners of the veal property. C, A complete legal description shall be provided. D. Applicant skill complete all forms and information detailed above and submit all forms to the City of Paris Building Oficial. 2. Ali 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 sweat with City staff to discuss details of the application and to prepare presentation of the application to the City Council. 3. The application shall desiSnate whether the structure is new or an existing structure and pravide an estimate of the value of improvements. 4. If Application for residential tax abatement is approved by staff, Applicant must enter into a tax abatement agreement with the City of Paris and as prepared by the City Attorney. S. If the Applicants property is not located within a designated reinvestment zone the application will be rejected and returned to Applicant. 6, The City Council reserves the right to amend the boundaries of a reinvestment sane or to designate new reinvestment zones. 7. The City Council reserves the right to amend these policies and guidelines as needed. VL LEGAL 1DOCUN ENTATIOId PREPARATION Thi City Attorney urill be responsible for dra ing the Residential Tax Abatement Agreement in accordance with state law and these Guidelines and Criteria. The legal document will include the following: Page 3 of 5 i. Estimated value ofnew structure or residential improvements to be c onstru ud. 2. Percent of value to be abated each year. 3. Effective date and the w mination date of abatement. 4. Description of the Improvements, schedule of completion, proparty description and/or site plan. 5. Applicaat agrees to make the new structure or residential impmvemerits available for itagmflon by City of Paris, or its authorized representatives, and Lamar County Appraisal District during construction and upon completion of the project. b. Contractual obligations in the event of default, violation of terms or conditions, delinquent teaaes, recapture and administration. [REMAINDER OF PAGE BLANK) Page 4 of 5