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
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We're Going to Paris, LLC
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(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
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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.
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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:
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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)
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