1998-045-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 23RD DAY
RESOLUTION NO. 98-045
WHEREAS, the City Council of the City of Paris did heretofore, on the 23rd day of
March, 1998, in Resolution No. 98-042, establish certain guidelines and criteria governing tax
abatement incentives within that portion of the City of Paris described as Reinvestment Zone No.
5; and,
WHEREAS, such guidelines and criteria are in need of revision, and the form of the
amended Guidelines and Criteria for Reinvestment Zone Number 5, attached hereto as Exhibit A,
should, in all things, be approved; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS, that the amended Guidelines and Criteria for Reinvestment Zone Number 5, attached
hereto as Exhibit A, be, and the same are hereby, adopted; and,
BE IF FURTHER RESOLVED, that this resolution was passed by a vote of at least three-
fourths (3/4) of the members of the City Council of the City of Paris.
PASSED AND ADOPTED this 13th day of APrk::::> _
Eric S. Clifford, Mayor
ATTEST:
Mattie Cunningham, City Clerk
CITY OF PARIS, PARIS, TEXAS
GUIDELINES AND CRITERIA FOR
REINVESTMENT ZONE NUMBER FIVE
I. Purpose and Objective
The City of Paris is committed to the promotion of quality development in all parts of the
city and to an ongoing improvement in the quality of life for its citizens. Insofar as these
objectives are generally served by the enhancement and expansion of the local economy, the City
of Paris will, on a case-by-case basis, give consideration to providing tax abatement incentives as
a stimulation for economic development in Paris. It is the policy of the City of Paris that said
consideration will be provided in accordance with the procedures and criteria outlined in this
document. However, nothing herein shall imply or suggest that the City of Paris is under
obligation to provide any incentive to any applicant. All applicants shall be considered on a case-
by-case basis. Furthermore, the adoption by the City Council of these guidelines and criteria does
not limit the discretion of the City Council to decide whether to enter into a specific. tax abatement
agreement; limit the discretion of the City Council to delegate to its employees the authority to
determine whether or not the City Council should consider a particular application or request for
tax abatement; or create any property, contract, or other legal right in any person to have the
governing body consider or grant a specific application or request for tax abatement.
II. Criteria for Tax Abatement Incentives
The following threshold criteria shall be used to determine whether any tax abatement
incentives shall be granted:
1) The proposed development or redevelopment must create at least twenty-two (22)
or more jobs. Such jobs to be filled with priority being given to promote among
equally qualified job applicants the hiring of employees first from within the
Enterprise Zone, second from within the corporate limits of the City of Paris, and
third from within the County of Lamar, State of Texas, subject to the laws and
regulations of the United States of America and the State of Texas and subject to
any labor contracts currently in effect and any successive contracts or past
practices.
2) An investment of at least $1,800,000.00 in property improvements is required.
3) The project meets all relevant zoning requirements.
In addition to the threshold criteria, the following shall be considered:
1) The project is consistent with the comprehensive plan of the City of Paris.
GUIDELINES & CRITERIA. Page. I
EXHIBIT A
2) Types and cost of public improvements and services (water and sewer main
extensions, streets and alleys, etc.) required of the City. Types and values of
public improvements to be furnished by the applicant.
III. Types of Incentives
It is the intent of the City of Paris to customize the offering of tax abatement incentives on
a case-by-case basis. This individualized design is intended to allow maximum flexibility in
addressing the unique concerns of each applicant while enabling the City to better respond to the
changing needs of the community.
The criteria outlined in Section II above will be used to determine whether it is in the best
interest of the City of Paris to provide any tax abatement incentives to a particular applicant. The
degree to which the specified project furthers the goals and objectives of the City of Paris and the
relative impact of the specified project will be used to determine the total value of the tax
abatement incentives provided. As a general rule, no tax abatement will be provided to any
applicant in an amount exceeding the value of the following:
No tax abatement incentive shall be provided which abates more than 100% of the
estimated total tax increase to be levied on the proposed property improvements
and such abatement shall not exceed a term of seven (7) years.
IV. Application Procedures
Any person, organization, or corporation desiring that the City of Paris provide tax
abatement incentives to encourage their location or expansion of operations within the city limits
or the extraterritorial jurisdiction of Paris shall be required to comply with the following
application procedures. However, nothing within these guidelines shall imply or suggest that the
City is under any obligation to provide any incentive to any applicant.
Any applicant desiring tax abatement incentives shall file an application request which shall
include at least the following information:
1) A plat showing the precise location of the property, all roadways within 200 feet
of the site, and all existing zoning and land uses within 200 feet of the site.
2) If the property is described by metes and bounds, a complete legal description
should be provided.
3) A brief description of the proposed improvements or expansion and its projected
costs; the type of business operation proposed; the number and type of jobs
created, including information pertaining to anticipated job transfers; the projected
GUIDELINES & CRITERIA - Page - 2
date of operation; and the type and value of any economic development incentives
requested.
4) Any other information about the proposed project as may be required by the City
or as deemed desirable.
Once the application has been received, the information submitted will be reviewed by the
City Manager for completeness and accuracy. The City Manager will then distribute the
application to the appropriate department heads for internal review and comments. Following staff
review, copies of the complete application package and staff comments will be provided to the City
Council and to other taxing entities that may be willing to participate in offering tax abatement
incentives. Generally, the City Council, staff and other taxing entities will discuss the proposed
application at a work session prior to its formal consideration by the Council. Following the work
session, the City Manager may be requested to obtain other information prior to further
consideration of the application.
At a subsequent regular City Council meeting, the application for any tax abatement
incentive may be considered. The City will comply with certain public notice and hearings are
required as mandated by state law under the Property Redevelopment and Tax Abatement Act
prior to the designation of a reinvestment zone and execution of a tax abatement agreement. Prior
to final approval, all legal documents to effect such reinvestment zone(s) and tax abatement
agreement(s) shall be drafted and approved by the City Attorney.
Should the City Council determine that it is in the best interest of the City of Paris to
provide tax abatement incentives to a particular applicant, a resolution shall be adopted declaring
that, under the guidelines and criteria established herein, the applicant is eligible for tax abatement
and that the Mayor is authorized to execute a contract with the applicant, enumerating the type of
incentives and governing any conditions applicable to it. Any agreement so adopted must include
at least the following specific items:
1) Description of the type of tax abatement to be provided and its duration;
2) Legal description of the property to be designated as a reinvestment zone;
3) Detailed information regarding the type, number, location, and costs of planned
improvements;
4) A statement granting the access to and inspection of the property and proposed
improvements by City inspectors and officials to ensure that the improvements or
repairs are made according to specifications and conditions of the agreements;
GUIDELINES & CRITERIA. Page. 3
5) A statement limiting the uses of the property consistent with the general purpose
of encouraging development or redevelopment of the zone during the period that
property tax exemptions are in effect;
6) A statement providing for the recapturing of property tax revenue lost as a result
of the agreement if the owner of the property fails to make the improvements or
repairs as provided by the agreement;
7) Each term agreed to by the owner of the property;
8) A statement requiring the property owner to certify annually to the City Council
that the owner is in compliance with each applicable term of the agreement; and,
9) A statement providing that the City Council may cancel or modify the agreement
if the property owner fails to comply with the agreement.
V. Amendments to these Guidelines and Criteria
The guidelines and criteria adopted herein shall not be amended or repealed except by
three-fourths (3/4) vote of the City Council.
VI. Effective Date
These guidelines and criteria adopted herein shall be effective from the date of passage and
remain effective for two (2) years from such date of adoption, unless otherwise repealed by a
three-fourths (3/4) vote of the City Council.
PASSED AND ADOPTED this 13th day of April, 1998.
Eric S. Clifford, Mayor
ATTEST:
Mattie Cunningham, City Clerk
GUIDELINES & CRITERIA - Page - 4
APPROVED AS TO FORM:
T. K. Haynes, City Attorney
GUIDELINES & CRITERIA - Page - 5