2006-042-RES-Tax Abatement Incentives
RESOLUTION NO. 2006-042
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AMENDING RESOLUTION NO. 2005-144 ESTABLISHING
GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
INCENTIVES WITHIN THE CITY OF PARIS AND ITS
EXTRATERRITORIAL JURISDICTION; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of
December, 2005, adopt Resolution No. 2005-144; and,
WHEREAS, Resolution No. 2005-144 established Guidelines and Criteria Governing Tax
Abatement Incentives within the City of Paris and its extraterritorial jurisdiction; and,
WHEREAS, the City Council deems it necessary to amend the Guidelines and Criteria
Governing Tax Abatement Incentives within the City of Paris and its extraterritorial jurisdiction;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That Resolution No. 2005-144 is amended to include the attached Criteria and
Guidelines for Tax Abatement attached hereto as Exhibit A.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 13th day of
ATTEST:
J'r\
ice Ellis, City Clerk
APPROVED AS TO FORM:
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J / D. Lestock, Assistant City Attorney
CITY OF PARIS, TEXAS
POLICY STATEMENT
CRITERIA AND GUIDELINES
FOR TAX ABATEMENT
I. General Purpose and Objectives.
The City of Paris, Texas (herein called the "City") is committed to enhancing the
competitiveness and the expansion potential of the City's manufacturing industry; to attracting
and encouraging new manufacturing industry and investment; to improving the City and its
infrastructure which attracts and supports development; and, to expanding the tax base,
employment opportunities, and the overall quality of life for its citizenry. Therefore, the City
will give consideration, on a case-by-case basis, to providing tax abatement according to state
law to the owners of real property for projects which stimulate economic growth and
diversification in the City.
Tax abatement benefits may be made available to industrial, manufacturing,
distribution, and service facilities currently in the City or locating in the City if located in a
designated Enterprise Zone or Reinvestment Zone. New facilities and structures as well as the
expansion and modernization of existing facilities and structures, will be considered.
Evaluation of a tax abatement request will be based on the information provided in the tax
abatement application. However, the City is under no obligation to provide tax abatement to
any applicant.
II. Definitions
a) "Abatement" or "abatement" means "tax abatement", which is the full or partial
exemption from ad valorem taxes of certain real and tangible personal property in a
Reinvestment Zone designated for economic development purposes.
b) "Agreement" means the written agreement for tax abatement between a property
owner and/ or lessee and the City.
c) "Authorized Facility". A facility may be eligible for abatement if it is a Manufacturing
Facility, a Research Facility, a Regional Distribution Facility, a Regional Tourist Entertainment
Facility or Other Basic Industry (all of which terms are defined below); or if the facility is a
Historic Property defined in Section IV (b) below within a City of Paris Historical District.
d) "Base Year Value" means the assessed value of eligible property as of January 1,
preceding the date of execution of the agreement plus the agreed upon value of eligible
property improvements made after January 1, but before the execution of the agreement. The
Base Year Value may be adjusted either up or down from year to year as per renditions by the
Lamar County Appraisal District.
e) "Employer" means the owner or lessee of Property who provides Jobs within the
Reinvestment Zone or within the Enterprise Zone, applying for tax abatement.
EXHIBIT A.
f) "Enterprise Zone" means an area of land designated as such under Chapter 2303 of
the Texas Government Code.
g) "Jobs" or "a Job" as used herein means a position of full-time employment for an
individual to work 32 hours or more per week for an Employer, in which position the
individual is provided the benefits normally offered by the Employer, such as health insurance,
vacation time and some form of retirement benefit. A Job is not a position filled for the
Employer as a worker or employee of an employment agency or service. "Jobs" as used herein
includes "Full-time Equivalent Jobs", as defined below.
h) "Full-time Equivalent Jobs" means a number of part-time jobs where the hours
worked in each such job is less than 32 hours per week, made available by one Employer and
added together. For example, sixteen (16) part-time jobs made available by one Employer
where all such part-time jobs added together require a total of 352 hours of work per week (but
no such part-time job requires 32 hours of work or more per week), will equal eleven (11) Full-
time Equivalent Jobs (352 hours divided by 32 hours per week equal 11). Full-time Equivalent
Jobs do not require the employee to receive benefits from the Employer.
i) "Manufacturing Facility" means buildings and structures, including fixed machinery
and equipment, the purpose of which is or will be the manufacture of tangible goods or
materials or the processing of such goods or materials by physical or chemical change.
Facilities primarily engaged in assembling component parts of manufactured products are also
considered manufacturing facilities.
j) "Modernization" means the replacement and upgrading of existing facilities which
increases the productive input or output, updates the technology, or substantially lowers the
unit cost of operation. Modernization may result from the construction, alteration or
installation of buildings, structures, fixed machinery or equipment, but shall not be for the
purpose of reconditioning, refurbishing, repairing, or deferred maintenance.
k) "Other Basic Industry" means buildings and structures, including fixed machinery
and equipment, not elsewhere described, used, or to be used for the production of products or
services which result in the creation of new Jobs and bring new wealth into the City.
1) "Personal Property" means machinery, equipment, tools, shelving or materials eligible
under applicable law for tax abatement, which can be removed from an authorized facility
described in Section IV (a) below.
m) "Property" means Real Property or Personal Property defined herein, as is applicable
according to the context where used herein, that is eligible for tax abatement.
n) "Real Property" means the land within an Enterprise Zone or a Reinvestment Zone,
together with all improvements and fixtures constructed or otherwise situated thereon.
0) "Regional Distribution Facility" means buildings and structures, including fixed
machinery and equipment, used or to be used primarily to receive, store, service, or distribute
goods or materials where a majority of the goods or services are distributed to points at least
100 miles from its location in the City.
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p) "Regional Tourist Entertainment Facility" means buildings and structures, including
fixed machinery and equipment, used or to be used in providing amusement! entertainment
through the admission of the general public where the majority of users reside at least 100 miles
from the City and where the majority of users are likely to stay in the City for more than one
day and will therefore likely utilize local restaurants and hotelj motel accommodations.
q) "Reinvestment Zone" is an area where the City or County has decided to influence
development patterns and attract major investments that will contribute to the development of
the area through the use of tax abatement for specified improvements.
r) "Research Facility" means buildings and structures, including fixed machinery and
equipment, used or to be used primarily for research or experimentation to improve or develop
new tangible goods or materials or to improve or develop the production processes thereto.
s) "Tax Abatement Committee" means the committee of persons designated from time
to time by the Paris Economic Development Corporation to study, review and recommend tax
abatement to the applicable taxing entities in the community. The Tax Abatement Committee
will be composed of one person from each of the City (the City Manager or designee), the
County of Lamar (the County Judge or designee), Paris Junior College (the President or
designee), the Chief Appraiser of the Lamar County Appraisal District, and the Executive
Director of the Paris Economic Development Corporation.
III. Designation of a Reinvestment Zone.
The City or County may designate an area as a Reinvestment Zone in accordance with
the criteria and procedural requirements set forth in the Property Redevelopment & Tax
Abatement Act, as amended (Texas Tax Code Sec. 312.401 (b)).
For any area within the jurisdiction of the City to be eligible for tax abatement it must
meet the criteria for designation as a tax abatement Reinvestment Zone as set forth in the
Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312.
IV. Tax Abatement Authorized.
The City, through its Council, may agree in writing with the owner and/ or lessee of
taxable Real Property that is located in a Reinvestment Zone, but that is not in an improvement
project financed by tax increment bonds, to exempt from taxation a portion of the value of the
Real Property, or of Personal Property located on the Real Property, or both. The period of the
abatement granted under the agreement shall not exceed the term authorized by law. Such
agreement will be based on the condition that the owner or lessee of the Property makes
specific improvements or repairs to the Property. An agreement may provide for the exemption
of the Real Property in each year covered by the agreement only to the extent its value for that
year exceeds the Base Year Value. An agreement may provide for the exemption of Personal
Property located on the Real Property in each year covered by the agreement other than
Personal Property that was located on the Real Property at any time before the period covered
by the agreement. Inventory or supplies cannot be abated as Personal Property.
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Tax abatement may only be granted for additional value of eligible Property
improvements made subsequent to and specified in an abatement agreement between the City
and the Property owner or lessee subject to such limitation as the City may require. The
additional value must exceed any reduction in the fair market value of other property of the
owner already on the tax role with the jurisdiction of the City. Change in appraised value does
not qualify for abatement except in an instance where a previously vacant Authorized Facility
is utilized. Value added to the tax rolls must come from actual capital expenditures.
The negotiation of tax abatement contracts will be conducted by the Paris Economic
Development Corporation, in conjunction with the City Manager or designee to the Tax
Abatement Committee. In determining where and how tax abatement will be utilized, the Tax
Abatement Committee will examine the potential return on the public's investment. Return on
public investment will be measured in terms of (i) Jobs created, (ii) Jobs retained in cases of
existing Employers within the City, and (iii) broadening of the tax base, and expansion of the
economic base.
A property owner and/ or lessee shall be eligible for tax abatement only upon the
following terms and conditions:
a) If the Property involved is an Authorized Facility.
b) If the Property involved is a Historic Property. In the City Historic Districts there are
certain commercial and residential tax exemptions allowed. Exterior improvements in the
historic districts are allowed at 100% for seven (7) years with a minimum investment of $5,000
for residential property and $10,000 for commercial property. New residential construction
requires a minimum investment of $100,000 to be considered for a three (3) year 100%
exemption. New commercial construction requires a minimum investment of $200,000, for a
100% tax exemption for three (3) years.
c) If there will be the creation of new value. Abatements may only be granted for the
additional value of eligible Real and Personal Property improvements, subject to such
limitations as the City may require. Real Property tax abatement may be granted only to the
extent that its value for each year of the agreement exceeds its value for the year in which the
agreement is executed.
d) If there will be new Authorized Facilities created, or if existing Authorized Facilities
will be improved for purposes of modernization or expansion.
e) Eligible Property. Abatement may be extended to the value of buildings, structures,
fixed machinery and equipment, site improvements, tangible personal property, and that office
space and related fixed improvements necessary to the operation and administration of the
Authorized Facility; provided, however, that inventory or supplies shall not be eligible for
abatement. Eligible property for which abatement may be granted includes nonresidential real
property and/ or tangible personal property not located on the real property at any time before
the abatement agreement becomes effective.
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D Leased Authorized Facilities. If a leased Authorized Facility is granted abatement,
the agreement may be executed with the lessor and/ or lessee, depending upon the particular
circumstances of the proposed project. If the agreement is with the lessor, lessor shall
demonstrate binding contracts with the lessee to guarantee compliance with the terms of the
agreement.
g) Value and Term of Abatement. The City will decide whether to grant tax abatement
to an applicant, and the amount, if any, of such abatement, on a case-by-case basis and in
accordance with these Criteria and Guidelines. The term of abatement granted under any
agreement may not exceed that permitted by applicable state law. The amount of the
abatement shall be based upon a percentage (0 to 100%) of all or a portion of the eligible
property within the Authorized Facility. Abatement may only be granted for the additional
value of eligible property improvements made pursuant to and listed in the agreement between
the City and property owner and/ or lessee subject to such limitations as the City may require.
If a modernization project includes the replacement of improvements within an Authorized
Facility, the value eligible for abatement shall be the value of the new unit(s), less the value of
the replaced unit(s). The criteria that will be used in evaluating a particular application for
abatement will include, but not be limited to:
1) The dollar amount of the increase in the tax roll for the proposed project;
2) The number of Jobs created or retained by the Employer involved;
3) The possible effect the proposed project will have on attracting other taxable
improvements into the City;
4) The nature of the proposed project and its overall effect on the City;
5) The proposed project's effect on the safety, health, and morals of the City's
residents;
6) Whether the proposed project will have any substantial long-term adverse
effect on the provision of City services or its tax base;
7) Whether the project meets all relevant zoning requirements;
8) Whether the project is consistent with the comprehensive plan of the City or
County of Lamar; and
9) The types and cost of public improvements and services (water and sewer
main extensions, streets and roads, etc.) required of the City and the types
and values of public improvements to be furnished by the applicant.
h) Economic Qualification. In order to be eligible to receive tax abatement, the planned
improvements:
1) Must be reasonably expected to increase the appraised value of the Property;
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2) Must be expected to prevent the loss of employment, or the retention or
creation of Jobs in the City during the term of the agreement;
3) Should not be expected to solely or primarily have the effect of merely
transferring existing employment from one part of the City to another without
demonstration of increased future investment (Dollars or Jobs) or unusual
circumstances whereby without such a move employment is likely to be
reduced;
4) Must be necessary because capacity cannot be provided efficiently utilizing
existing improved Property when reasonable allowance is made necessary
improvements or relevant governmental actions.
i) Taxability. During the term of the agreement, taxes shall be payable as follows:
1) The Base Year of eligible property as determined each year by the Lamar
County Appraisal District shall be fully taxable; and
2) The additional value of eligible property above the Base Year Value shall be
taxable in the manner described in the agreement.
The Chief Appraiser of the Lamar County Appraisal District shall annually determine
an assessment of the Real and Personal Property comprising the Reinvestment Zone. Each
year, the Employer, the company or individual receiving abatement pursuant to an agreement
shall furnish the assessor with such information as may be necessary to determine the amount
of any abatement. Once such value has been established, the Chief Appraiser shall notify the
affected jurisdictions which levy taxes on such Property and the Paris Economic Development
Corporation.
The Employer, owner or lessee of eligible Property requesting tax abatement within a
Reinvestment Zone shall, prior to the commencement of eligible property improvements, agree
to expend a designated sum of money and to create or retain a certain number of Jobs, or
annual payroll as further defined below.
V. Tax Abatement for Real Property; Creation of Jobs:
Tax abatement may be made available to Employers creating Jobs with respect to an
Authorized Facility located anywhere within the City or its extra territorial jurisdiction based
on the following:
a) To be eligible for any tax abatement, there must be a minimum capital investment in
the Authorized Facility of $250,000 and at least ten (10) new Jobs added to the Employer's labor
force.
b) When an abatement percentage has been agreed upon it shall be granted for years
one (1) through three (3); thereafter, there will be a 20% reduction in the original 3ffiOl:ln(
percentage abated beginning with year four (4) and a similar reduction of 20% in each of the next
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three years unti1100% of the Real Property valuation is added to the tax rolls. This formula is
exemplified in Exhibit "A ", attached to this document.
c) Criteria for qualification for tax abatement are as follows:
Capital Investment and Newly Created or Jobs Possible Abatement
Minimum Annual Payroll Created (1st 3 Years Onlyl
$250,000-$500,000 $125,000 10-25 20%
$500,001-$750,000 $325,000 26-50 30%
$750,001-$1,000,000 $635,000 51-75 40%
$1,000,001-$1,500,000 $945,000 76-100 50%
$1,500,001-$2,000,000 $1,260,000 101-125 60%
$2,000,001-$3,000,000 $1,570,000 126-150 70%
$3,000,001-$4,000,000 $1,880,000 151-175 80%
$4,000,001-$5,000,000 $2,190,000 176-200 90%
$5,000,001-$10,000,000 $2,500,000 201-225 100%
d) Any project with a capital investment of more than ten million dollars ($10,000,000),
accompanied by a newly created minimum annual payroll of two and one-half million dollars
($2,500,000), or creating more than two hundred twenty-five (225) Jobs will be individually
negotiated. No abatement will be granted for more than specified in state law.
e) If a newly created business is located or will locate within an Enterprise Zone, an
additional 10 to 20% abatement may be available as individually negotiated, with total
abatement not to exceed 100%.
VI. Tax Abatement for Personal Property; Creation of Jobs:
The City recognizes a significant difference in the valuation of real property and
personal property. Because of depreciation schedules, often the abatement of personal property
is basically a tax exemption. For this reason, the abatement schedule for personal property
versus real property is significantly different. If personal property should become obsolete and
be replaced while under an abatement agreement, the replacement personal property is not
eligible for abatement.
a) To be eligible for any tax abatement on Personal Property, there must be a minimum
capital investment of $250,000 in Personal Property and at least ten (10) new Jobs added to the
Employer's labor force.
b) When an abatement percentage has been agreed upon it shall be granted for years
one (1) through three (3); thereafter, there will be a 20% reduction in the original amount
percentage abated beginning with year four (4) and a similar reduction of 20% in each of the next
three years until 100% of the Real Property valuation is added to the tax rolls. This formula is
exemplified in Exhibit "B", attached to this document.
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c) Criteria for qualification for tax abatement are as follows:
Capital Investment
$250,000-$350,000
$350,001-$500,000
$500,001-$750,000
$750,001-$1,000,000
$1,000,001-$1,250,000
$1,250,001-$1,500,000
$1,500,001-$1,750,000
$1,750,001-$2,000,000
$2,000,001-$3,000,000
Newly Created
Minimum Annual Payroll
$125,000
$325,000
$635,000
$945,000
$1,260,000
$1,570,000
$1,880,000
$2,190,000
$2,500,000
or Jobs
Created
10-25
26-50
51-75
76-100
101-125
126-150
151-175
176-200
201-225
Possible Abatement
(1st 3 Years Onlyl
20%
30%
40%
50%
60%
70%
80%
90%
100%
d) Any project with a capital investment in personal property of more than three million
dollars ($3,000,000), accompanied by a newly created minimum annual payroll of two and one-
half million dollars ($2,500,000), or creating more than two hundred twenty-five (225) new Jobs
will be individually negotiated. No abatement will be granted for more than specified in state
law.
e) If a newly created business is located or will locate within an Enterprise Zone, an
additional 10 to 20% abatement may be available as individually negotiated, with total
abatement not to exceed 100%.
VII. Tax Abatement for Existing Employers Regarding Real or Personal Property.
The City recognizes the value of its existing Employers to the well-being of the
community and desires to encourage existing Employers to remain in the City and to improve
their respective businesses and industries, as well as their profitability. Accordingly, if an
existing Employer (as opposed to a newly created business or industry moving into the City),
owns or leases an Authorized Facility and has plans to improve such Property by constructing
new improvements on its Real Property and/ or adding new Personal Property to its
Authorized Facility which qualify for tax abatement under these Criteria and Guidelines, such
Employer may be eligible for tax abatement with respect to such improvements to its Real
Property or its new Personal Property under the provisions of Article V and IV above, even if
no new Jobs or Newly Created Minimum Annual Payroll are created. In these cases involving
existing Employers, the criteria for tax abatement for improvements to Real Property at
Authorized Facilities are identical to that set forth in Article V above (except that no new Jobs
or Newly Created Minimum Annual Payroll are required); and the criteria for tax abatement
for new Personal Property added to Authorized Facilities are identical to that set forth in
Article VI above (except that no new Jobs or Newly Created Minimum Annual Payroll are
required). In this regard, however, the City encourages existing Employers to retain as many
Jobs and as much existing Annual Payroll as is economically feasible for the existing Employer
to do and remain competitive in its industry.
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VIII. Application.
a) Eligibility. Any present or potential owner of taxable property in the City may
request tax abatement by filing a written request with the City Manager or County Judge, with
a copy of the said application to be forwarded by the applicant to the Executive Director of the
Paris Economic Development Corporation.
b) Form. The application shall consist of a completed application form accompanied by
the following items:
1) A general description of the improvements to be undertaken together with the
projected new value to the Property and the type of business operation
proposed;
2) A detailed descriptive list of the improvements for which abatement is
requested;
3) A list of the kind, number, and location of all proposed improvements of the
Property;
4) A list of the number and type of Jobs created, including information
pertaining to anticipated job transfers;
5) A metes and bounds description and plat of the proposed Reinvestment Zone
that shows all roadways within 200 feet of the Reinvestment Zone and all
existing zoning and land uses within 200 feet of the Reinvestment Zone;
6) A time schedule for undertaking and completing the proposed
improvements;
7) The type and value of any economic development incentives requested; and
8) Any other information about the proposed project as may be required by the
City or as deemed desirable by the City.
c) Review. Once the application has been received, the information submitted will be
reviewed by the Tax Abatement Committee for completeness and accuracy. The Committee
will then distribute the application to the appropriate department heads and taxing entities for
review and comment. In addition, no tax abatement application shall be considered for further
processing by the governmental entities unless first approved by the governing board of the
Paris Economic Development Corporation.
d) Public Hearing. The City will comply with certain public notices and hearings
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.
The City may adopt an ordinance designating a tax abatement Reinvestment Zone only after
notice of a public hearing has been published at least seven (7) days before the date of the
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hearing, and all other procedural requirements of Chapter 312 of the Texas Tax Code have been
satisfied.
e) Findings. In order to enter into an agreement, the City must find that the terms of the
proposed agreement comply with these Guidelines and Criteria, that there will be no
substantial adverse affect on the provision of City services or tax base, and that the planned use
of the Property will not constitute a hazard to public safety, health or morals. Incident to
approval of any ordinance designating a Reinvestment Zone, the City shall find that the
improvements sought are feasible and practical and would be a benefit to the land to be
included in the Reinvestment Zone and to the City after the expiration of the agreement.
fj Variances. Requests for variance from the provisions of these Guidelines may be
made in writing to the City; provided, however, that in no event shall the term of any
abatement exceed the period authorized by applicable state law. Such request shall include a
complete description of the circumstances requiring a variance. Approval of a request for
variance shall require the affirmative vote of three-fourths (3/4) of the members of the City
Council.
IX. Agreement.
After approval, the City shall formally pass an order or resolution and authorize the
execution of an agreement with the owner and/ or lessee of the Authorized Facility which shall
include, but not be limited to the following terms:
a) The Base Year Value;
b) Percent of increased value to be abated each year;
c) The commencement date and the termination date of abatement;
d) Amount of investment and average number of jobs involved during the term of the
agreement;
e) The proposed use of the Authorized Facility, nature of construction, time schedule,
plat, property description, and improvement list, as provided in the application;
fj A listing of the kind, number, location, and costs of all proposed improvements of the
Property;
g) A statement limiting the uses of the property consistent with the general purpose of
encouraging development or redevelopment of the Reinvestment Zone during the
period that property tax abatement is in effect;
h) That access to the project is provided to allow for the inspection by City inspectors
and officials in order to ensure that the improvements or repairs are made according to
the specifications and conditions of the agreement;
i) That property tax revenue lost as a result of the tax abatement agreement will be
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recaptured by the City if the owner of the Property fails to make the improvements or
repairs as provided by the agreement;
j) Each term agreed to by the owner of the Property;
k) A requirement that the owner of the Property shall certify annually to the City that
the owner is in compliance with each applicable term of the agreement;
1) Contractual obligations in the event of default, violation of terms or conditions,
delinquent taxes, recapture, administration and assignment, or other provisions that
may be required by state law, or in the discretion of the City Council; and
m) That the City may cancel or modify the agreement if the Property owner fails to
comply with the agreement.
X. Default. If the City determines that the person or entity receiving an abatement is in default
according to the terms and conditions of its agreement, the City shall notify the company or
individual in writing at the address stated in the agreement, and if such default is not cured
within a reasonable time specified in such notice ("Cure Period"), then the agreement may be
modified or terminated without further notice. In the event the company or individual allows
its ad valorem taxes owed to the City to become delinquent and fails to timely and properly
follow the legal procedures for their protest and/ or contest, or violates any of the terms and
conditions of the agreement and fails to cure during the Cure Period, the agreement then may
be modified or terminated without further notice, and the agreement may provide a formula
for recapture of all or part of the taxes abated. At any time before the expiration, any tax
abatement agreement may be terminated by mutual consent of all parties involved in the same
manner that the agreement was executed.
XI. Confidentiality of Proprietary Information. Information that is provided to a taxing unit
in connection with an application or request for tax abatement under these Guidelines and that
describes the specific processes or business activities to be conducted or the equipment or other
property to be located on the Property for which tax abatement is sought is confidential and not
subject to public disclosure until the agreement is executed. Such information in the custody of
the City after the agreement is executed is not confidential under these Guidelines.
XII. Proposed Tax Abatement Agreements to be decided on an Individual Basis. The
adoption of these Guidelines by the City does not limit the discretion of the City Council to
decide whether to enter into a specific tax abatement agreement, or limit the discretion of the
City Council to delegate to its employees the authority to determine whether or not the City
should consider a particular application or request for tax abatement, or create any property,
contract, or other legal right in any person or entity to have the City Council consider or grant a
specified application or request for tax abatement.
XIII. Inspections. The agreement shall stipulate that employees and/ or designated
representatives of the City will have access to the Reinvestment Zone during the term of the
agreement to inspect the Authorized Facility to determine if the terms and conditions of the
agreement are being met. All inspections will be made only after the giving of at least twenty-
four (24) hours' prior notice and will only be conducted in such a manner as to not
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umeasonably interfere with the construction and/ or operation of the Authorized Facility. All
inspections will be made with one or more representatives of the company or individual and in
accordance with its safety standards.
Upon completion of construction, the City shall annually evaluate each Authorized Facility
receiving abatement to ensure compliance with the agreement and report possible violations of
the agreement to the City Council.
XIV. Modifications of Agreement. At any time before the expiration of an agreement made
under these Guidelines, the agreement may be modified by the parties to the agreement to
include other provisions that could have been included in original agreement or to delete
provisions that were contained in the original agreement. The modification must be made by
the same procedure by which the original agreement was approved and executed. The original
agreement, however, may not be modified to extend the term of the agreement or the term of
the abatement granted therein beyond the time permitted by state law.
XV. Assignment. An agreement may be assigned to a new owner or lessee of the Authorized
Facility only with the prior written consent of the City. Any assignment shall provide that the
assignee shall irrevocably and unconditionally assume all the duties and obligations of the
assignor upon the same terms and conditions as set out in the agreement, and the City's
approval shall be subject to the determination of the financial capability of such assignee. Any
assignment of an agreement shall be to an entity that contemplates the same improvements or
repairs to the Property, except to the extent such improvements or repairs have been
completed. No assignment shall be approved if the assignor or the assignee is indebted to the
City for ad valorem taxes or other obligations, or if any event of default under the agreement
remains uncured.
XVI. Administration, Contract Review and Monitoring, and Reporting.
a) The Paris Economic Development Corporation shall be primarily responsible for the
administration, review, and monitoring of tax abatement agreements authorized by the City
under these Guidelines. These responsibilities shall include verifying that participants in tax
abatement agreements are in full compliance with the terms of the agreement.
b) The Paris Economic Development Corporation shall expeditiously advise the City in
writing of any instances of contract non-compliance by tax abatement participants. In addition,
the Paris Economic Development Corporation shall, on an annual basis, conduct a performance
review of the activities of each tax abatement participant and report the findings of such review
to the City Council.
c) The City shall retain the right to independently review and audit the activities of tax
abatement participants.
d) The City shall be responsible for enforcement of the terms of any tax abatement
agreement authorized hereunder.
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XVII. Amendments. These Guidelines are effective for a two (2) year period from the date of
their adoption, unless amended or repealed by the affirmative vote of three-fourths (3/4) of the
members of the City Council.
For a tax abatement application or additional information contact:
Paris Economic Development Corporation
1125 Bonham Street
Paris, Texas 75460
903-784-2501
800-727-4789
Fax 903-784-2503
Email pedc@paristexas.com
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Tax Abatement for Personal Property; Creation of Jobs
For Campbell's Soup Company LLC
Annual
Year Abatement Abatement % Appraised Value Abatement Amount
Schedule**
1 100% 100.0% $ 17,700,000.00 $ 17,700,000.00
2 100% 100.0% $ 17,700,000.00 $ 17,700,000.00
3 100% 100.0% $ 17,700,000.00 $ 17,700,000.00
4 80% 80.0% $ 17,700,000.00 $ 14,160,000.00
5 60% 60.0% $ 17,700,000.00 $ 10,620,000.00
6 40% 40.0% $ 17,700,000.00 $ 7,080,000.00
7 20% 20.0% $ 17,700,000.00 $ 3,540,000.00
8* 0% 0.0% $ 17,700,000.00 $ -
· Starting the 8th year the company will pay 100% of their taxes.
.. This schedule shows how the original abatement % is affected for a
specific year. (Example: During the first 3 years the company will receive
100% of the original abatement percentage. In year 4the company will
receive 80% of the original abatement percentage.)
Exhibit B
Tax Abatement for Real Property; Creation of Jobs
For Paris Warehouse 107, Inc. (We Pack)
Exhibit A
Annual
Year Abatement Abatement % Appraised Value Abatement Amount
Schedule**
1 100% 80.0% $ 3,150,000.00 $ 2,520,000.00
2 100% 80.0% $ 3,150,000.00 $ 2,520,000.00
3 100% 80.0% $ 3,150,000.00 $ 2,520,000.00
4 80% 64.0% $ 3,150,000.00 $ 2,016,000.00
5 60% 48.0% $ 3,150,000.00 $ 1,512,000.00
6 40% 32.0% $ 3,150,000.00 $ 1,008,000.00
7 20% 16.0% $ 3,150,000.00 $ 504,000.00
8* 0% 0.0% $ 3,150,000.00 $ -
· Starting the 8th year the company will pay 100% of their taxes.
.. This schedule shows how the original abatement % is affected for a
specific year. (Example: During the first 3 years the company will receive
100% of the original abatement percentage. In year 4the company will
receive 80% of the original abatement percentage.)