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2011-035 ORD AUTHORIZING CITY OF PARIS TO PARTICIPATE IN TX ENTERPRISE ZONE PROGRAMORDINANCE NO. 2011-035 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS AUTHORIZING THE CITY OF PARIS TO PARTICIPATE I1V THE TEXAS ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE; PROVIDING TAX INCENTIVES; NOMINATING ESSEIVT PRMC, LP TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT AND TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS A QUALIFIED BUSIIYESS AND ENTERPRISE PROJECT UNDER THE ACT; DESIGNATING A LIAISON FOR OVERSEEING ENTERPRISE PROJECTS AND COMMUNICATING WITH INTERESTED PARTIES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Paris, Texas ("the City") desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the City and to provide employment to residents of those areas; and, WHEREAS, Essent PRMC, LP, (d/b/a Paris Regional Medical Center), 865 DeShong Drive, Paris, Texas continues to be a major employer for the City of Paris, Lamar County, Texas; and, WHEREAS, the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code, as amended, (the "Act") authorizes the designation of enterprise projects within an enterprise zone (or, if the requirements of Section 2303.402(a)(2) of the Act are met, within an area that does not qualify as an enterprise zone); and, WHEREAS, under the 2003 amendments to the Act, the Act is now administered by the Office of the Governor Economic Development and Tourism ("OOGEDT") through the Texas Economic Development Bank ("Bank"); and, WHEREAS, following posting and publication of the notice of hearing, a public hearing was held by the Paris City Council at the Council Chambers, Paris City Hall, 107 E. Kaufman, Paris, Texas to consider this ordinance and to allow all interested persons to appear and be heard; and, WHEREAS, the City Council has determined that passage of this Ordinance would be in the best interests of the City of Paris and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUIVCIL OF THE CITY OF PARIS, TEXAS THAT: Section 1. The findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. As required by Section 2303.4051(b) of the Act, the City's local incentives available in each area within an enterprise zone and in each area not in an enterprise zone are identified and summarized in the attached Exhibit "A;" and at least one of the local incentives is unique to the enterprise zone area. The City is in full compliance with the Act. Section 3. The City finds that Essent PRMC, LP, Northward Bound Project ("Essent PRMC, LP Northward Bound"), meets the criteria for designation as an enterprise project under the Act on the following grounds: (a) Essent PRMC, LP is a"qualified business" under Section 2303.402 of the Act because it is engaged in the active conduct of a trade or business at a qualified business site and at least twenty-five percent (25%) of its new employees at the qualified business site will be residents of an enterprise zone in this state or are economically disadvantaged individuals; (b)The Essent PRMC, LP Northward Bound project is qualified under Section 2303.404 of the Act because (1) it involves "an expansion, renovation, or new construction"; (2) it will be completed within a predetermined period not to exceed five years; and (3) Paris Regional Medical Center is a wholly owned subsidiary of Essent Healthcare, Inc. for which separate books and records are kept; (c) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the jurisdiction of the City; (d) The designation of Essent PRMC, LP Northward Bound as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area in which the enterprise project will be located; and Section 4. The City Council of the City of Paris hereby nominates Essent PRMC, LP, to be known as Northward Bound as an Enterprise Project under the Act and designates the City's Director of Engineering, Planning & Community Development as liaison to oversee enterprise projects nominated by the City and to perform the other duties described in Section 2303.204 of the Act (hereinafter "Director"). The City authorizes the Director to file an application requesting designation of Essent PRMC, LP Northward Bound as an Enterprise Project with the Bank, and to execute all documents and agreements necessary to process the application. Further, the City directs the Director or his designee to submit to the Bank the information required by section 2303.4052 of the Act. Section 5. The City finds that Essent PRMC, LP Northward Bound meets the criteria for tax relief and other incentives adopted by the City and that Essent PRMC, LP Northward Bound will be located wholly within the qualified business site and will retain jobs and increase economic activity and stability. As required by Section 2303.4051(c)(2) of the Act, the City's local incentives, including tax incentives, that at the election of the City Council, are or will be made available to Essent PRMC, LP Northward Bound, the nominated project, are identified and summarized in the attached Exhibit "B". Section 6. Upon approval by the Bank, the Enterprise Project will be named Essent PRMC, LP Northward Bound Project ("Project"). Section 7. The Enterprise Project designation must be for a predetermined designation period approved by the Bank, with a beginning date and ending date for the Project; and the designation period for the Project may not exceed five (5) years from the date on which the designation is made, as required by Section 2303.404 of the Act. Essent PRMC, LP Northward Bound and the City request that the Bank approve August 22, 2011, as the beginning date and August 21, 2012, as the ending date of the Project. -N Section B. The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312. Section 9. The Paris areas that meet the 2003 requirements in Section 2303.101 of the Act for automatic qualification for designation as an enterprise zone are shown in the attached Exhibit "C". Section 10. That the City Council voted by a supermajority vote of the entire Council to suspend the rule requiring two readings before adoption of ordinances 6 ayes and 0 nays. Section 11. That this ordinance shall be effective following passage and publication as required by law. PASSED, APPROVED, AND ADOPTED this 22nd day of August, 2011. TTEST: , , J n ce Ellis, City Clerk APPROVED AS TO ORM: W. Kent McII Ci Attorney Exhibit A Paris, Texas Financial Incentives (Cash, Tax Abatements, Exemptions and Related Programs) wit~ ~6tlowiri g ~ ~e=the f - ~~'aros to ~uaxim 13~`F ~f'~ .,1C=i~tt+nin.:~:.~: _ 111AnCwi for or Pro-Business Climate Ta$ Abatements Local Cash Incentive for Job Creation Industrial Dev. Bonds Skilis Deveiopment Fund Enterprise Zone Freeport Law Taz Eaemptions Financial Services SBA and Other Loan Programs I ?u~iua~: ~µra1[ovvlil : i11 Because of a pro-business athtude, Te~s has limited the number of state controls and taxes regulating the activities of business. Texas is a right-to-work State, and has no personal or co orate income tax, nor a state ro e ta~c. The City of Paris has a proven track record of negotiating tax abatements for up to 10 years for new and expanding industries. In addition, Lamar County and paris Jr. College will consider local tax abatements for projects with significant job creation and private capital investment. The citizens of Paris adopted a'/ cent sales tax as an incentive assistance program to facilitate industrial locations and expansions. This program is administered directly by the Paris Economic Develo ment Co oration. PEDC has a history of providing industrial development bonds as a viable alternative for financin industrial ex ansion and construction. An incentive to relocating or expanding businesses through Texas community and technical colleges and workforce boards to provide customized assessment and training services to business in a timel , efficient and res onsive manner. Depending on the exact site location, Paris is a qualified Enterprise Zone (EZ). If your development or revitalization project is located in the EZ, the City of Paris can approve partial or deferred payment of sales and use taxes for qualified purchases, leases, or rentals. Specifically, the EZ provides sales and use tax rebates on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, and electricity and natural gas purchases. The EZ also provides priority job training, and other preferential treatrnent on state and federal programs. The taac refund is $2,000 for each permanent job the project creates or retains during the five year designation period. Qualifying projects may also be eligible for franchise tax reduction, property tax abatement up to 100% of the estimated local tax increase to be levied on the proposed property improvements for a term not to exceed ten (10 ears, and other regulatory relief. Article VIII, Section 1 of the Texas Constitution has been amended to allow real and personal properly to be tax-exempt (city, county and school districts.) All goods, wares, merchandise, other than tangible personal property (inventoty) acquired in or imported into Texas to be forwarded outside this state, which is detained for storing, assembling, manufacturing, processing, or fabricating in Texas for 175 days or less, may be tax exempt Local financial services companies m Pans and Lamar County are committed to the economic growth of the region through aggressive commercial and industrial development. Paris is currently served by seven commercial banks, two savings & loan associations, and has access to mort a e bankers, and other creative fmancial services. Small business loans are available through the SBA 504 program. Up to 40% of total cost can be provided in the form of subordinate debt to SBA for most fixed asset projects at interest cost of 2 to 3% below market for periods of 15-25 years. This type of financing can provide 90% of the long-term financing needs of a small business. Also available axe the SBA 7(A) Loan Guazantee program, the FmHA, paris' local Revolving Loan Fund, various programs of the ArkTex Council of Governments, and the Texas Leverage Fund. (Updated 8-4-11) Exhibit A Paris, Texas Financial Incentives (Cash, Tax Abatements, Exemptions and Related Programs) Tag Increment Financing Financing through the creation of tax increment reinvesttnent zones. Low-Interest Loans The City may offer low-interest loans to develop or revitalize the zone. Municipal Sales and Use Taa The City may refund the amount of tax paid under the Municipal Sales and Use Tax (Texas Tax Code, Chapter 321) by the busi d Refund ness an remitted to the Comptroller of Public Account up to the malcimum extent authorized by Sections 2303.505 and 2303 506 of th A Bonds . e ct, and for a eriod determined b the Ci , but which shall not exceed five 5 ears. Tax-Exem t Industrial Bonds. Fee Waivers Infrastructure The Ci ma waive or refund an and all a licable fees due or aid. Im rovements The City may provide infrastructure improvements for industries. Zoning CLanges or Variances Allows changes in the zonin and variances. g Streamlined Permittin The City may allow permit applications and supporting materials to be tendered to one de artment for distribution to th i Enhances e a ro r ate ci de artments. Municipsl Daily convenience for City residents. Services Increased Fire and Police Safety and protection for City residents. Protection Community Crime Prevention Community crime prevention programs such as D.A.R.E., Crime Watch, Think Child Safet d Pro rams y, an Think Senior Safety. Capital Improvements in The City can provide resources for a ca tal im rovement plan related to water and sewer Pi p i Water and Sewer serv ce. Road Repair The City is responsible for maintaining and repairing all public streets and alleys inside it c y limits. Creation or Improvement of Maintain healthy lifestyle for city residents. Parks are located in city limits and are the Parks res onsibili of ci p tY ty government. ~ Low-Interest Loans for Encourage home ownership for City residents. Housin Public Land for Development Strategic sustenance and growth for the City. Pur ses Promotion and Marketing Assistance offered by Lamar County Chamber of Commerce and Paris Economic Service Development Corporation. Job Trainin Offered in con'unction with Paris Junior College_ 2 (IJpdated 8-4-11) Exhibit A Paris, Texas Financial Incentives (Cash, Tax Abatements, Ezemptions and Related Programs) Retraining Pro ram Offered in conjunction with Paris Junior College. Literacy and Employment Offered in conjunction with Paris Junior college and public school districts. Skilis Pro rams Vocational Education ~~ered in conjunction with Paris Junior College and public school districts. Cash Grants Offered by Paris Economic Development Corporation (4A Economic Development Sales Taac). (LJpdated 8-4-11) Exhibit B 2 Incentives that may be ccnsidered and offered by the C' Nominated Texas Enterprise Zone Projects 2p112 PaliS to Fee waiver for tax abatement application Exhibit A Waive fees associated with tax abatement application. On a case-by case basis. EMerprise Zone Proi areas e on a Cas~e-~~y- ~Case Basis Enterprise ZoneANhere Exhibft C Paris Areas meeting the 2011 Requirements for Texas Enterprise Zone (Sections 2303.101 and 2303,I09) to°" Census Tract Blodc Grou lamar P!t"Cl11t POt Lamar ~2~ 2 0.227170 lamar 0005pp 0.240ppp Lamar p~)0 . 1 0.474128 Lamar 3 0.330309 Lamar 4 0.308gqO Lamar ppp~~ 1 0.264624 Lamar pp~~ 2 0.603846 Lamar ppp~ 3 0.460733 Lamar 4 0.274131 Lamar p~ 1 0.27S218 Lamar 000800 1 0.405204 Lamar pp0800 2 0.255940 Lamar 001000 i 0.204124 0.3i1111