1998-042-RES WHEREAS, CITY COUNCIL DESIRES TO PROMOTE ECONOMIC
RESOLUTION NO. 98-042
WHEREAS, the City Council of the City of Paris desires to promote economic
development within the corporate limits of the City of Paris or within the extraterritorial
jurisdiction of said city; and
WHEREAS, the provision of certain economic development incentives may encourage
prospective businesses and companies to locate within such corporate limits or extraterritorial
jurisdiction or existing businesses and companies located therein to expand; and,
WHEREAS, the establishment of specific guidelines, criteria, and procedures are
necessary to insure that tax abatement incentives are given and administered effectively; and,
WHEREAS, the adoption of guidelines and criteria are required by state law before an
area may be established as a reinvestment zone; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
1. That the City of Paris hereby establishes certain guidelines and criteria, attached
hereto as Exhibit A, governing tax abatement incentives within that portion of the City of Paris
described as Reinvestment Zone Number 5, and such guidelines and criteria shall expressly govern
all subsequent tax abatement agreements in said Zone.
2. That such guidelines and criteria shall be effective for two (2) years from the date
of adoption and may only be amended or repealed by a vote of three-fourths vote of the City
Council.
PASSED AND ADOPTED this 23rd day of March, 1998.
Eric S. Clifford, Mayor
ATTEST:
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Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
CITY OF PARIS, PARIS, TEXAS
GUIDELINES AND CRITERIA FOR
REINVESTMENT ZONE NUMBER 5
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.
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 business must have a minimum of 10 new full-time positions, with full-time
being defined as at least 1040 hours annually, or
2) Add at least $100,000 ad valorem value to the current value of the business.
3) Must make 1,000 points if a new industry or 250 points if existing industry making
an expansion. Points are awarded in the following manner:
a) Locating in an abandoned building - 200 points.
b) For each newly created full-time position on the payroll- 7 points.
c) For each newly created full-time position on the payroll that is occupied by
a handicapped or economically disadvantaged person - an additional 7
points to the already awarded 7 points.
d) For each $10,000.00 in capital investment generated -10 points.
e) For each $20,000.00 in annual payroll - 5 points.
4) The project meets all relevant zoning requirements.
GUIDELINES & CRITERIA. Page 1
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EXHIBIT A
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.
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.
The City may abate taxes on the increase in value of real property improvements and
eligible personal property that locate in a designated enterprise zone. The level of abatement shall
be based upon the extent to which the business receiving the abatement creates jobs for qualified
employees, with qualified employee being defined by the Act, in accordance with the method for
awarding points described in Section II (3) hereof.
Abatement percentages will be awarded depending upon points collected in
the following categories for new and expanding-existing industries:
Points
Year 250 to 600 601 to 1.000 1.001 or more
1 100% 100% 100%
2 75% 100% 100%
3 50% 100% 100%
4 25% 75% 100%
5 10% 50% 75%
6 0% 25% 50%
7 0% 10% 25%
Rehabilitation will be given preference over new construction. No tax abatement incentive
shall exceed a term of seven (7) years.
GUIDELINES & CRITERIA . Page 2
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
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
agreements shall be drafted and approved by the City Attorney.
GUIDELINES & CRITERIA . Page 3
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.
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; and,
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.
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 23rd day of March, 1998.
Eric S. Clifford, Mayor
GUIDELINES & CRITERIA . Page 4
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
T. K. Haynes, City Attorney
GUIDELINES & CRITERIA . Page 5