07-B Tax Abatement EligibilityDRAFT
H:/ATTORNEY/JANICE/ENTERPRISE/WAREHOUSE
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, ELECTING TO BECOME ELIGIBLE TO PARTICIPATE
IN TAX ABATEMENT AGREEMENTS AS AUTHORIZED UNDER THE
PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT, AS
AMENDED; DIRECTING THE CITY MANAGER TO DEVELOP
GUIDELINES AND CRITERIA TO GOVERN ALL TAX ABATEMENT
AGREEMENTS WITH THE CITY OF PARIS; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris desires to promote economic development
within Paris; and,
WHEREAS, the creation of certain reinvestment zones for tax abatement purposes within
the City of Paris and its extraterritorial jurisdiction, especially within the City's enterprise zone area,
will likely contribute to the economic development ofParis by encouraging major investment and the
creation of jobs; and,
WHEREAS, the passage of Senate Bill 1225 (70th Legislature) amended the Property
Redevelopment and Tax Abatement Act to allow cities to establish their own local criteria for the
designation of reinvestment zones for tax abatement purposes; 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 the City of Paris does hereby elect to become eligible to participate in tax
abatement agreements as authorized under the Property Redevelopment and Tax Abatement Act,
Chapter 312 of the Texas Tax Code, as amended.
Section 3. That the City Manager shall develop guidelines and criteria to govern all tax
abatement agreements with the City of Paris as required by the Property Redevelopment and Tax
Abatement Act, as amended.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 22nd day of September, 2004.
Curtis Fendley, Mayor
ATTEST:
Sherian Dixon, Assistant City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
AGENDA INFORMATION SHEET
PROJECT: A resolution declaring the City of Paris eligible to participate in a tax abatement program.
BACKGROUND: On August 20, 2004, Paris Warehouse 107, Inc. d/b/a WePack, presented an application
for tax abatement to the Paris Economic Development Corporation (PEDC). A copy of that application is
included with this packet. As a consequence, the city staffis preparing the necessary documents in accordance
with state law to present a tax abatement agreement for consideration by the City Council in the near future.
DESCRIPTION: As required by Section 312.002 of the Texas Tax Code, the first step to enable a
municipality to participate in tax abatement is the adoption of a resolution stating that the municipality elects
to become eligible to so participate. While the City of Paris has adopted similar resolutions in the past, before
it can participate in future tax abatements, a new statement of intent must be adopted. The enclosed resolution
satisfies State law requirements stating the intention of the City of Paris to become eligible to participate in tax
abatement. Adoption of this resolution is the first step enabling the City of Paris to grant a tax abatement to
Paris Warehouse 107, Inc.
RECOMMENDED ACTION: Approval of the resolution.
STAFF CONTACT: Larry W. Schenk, City Attorney, and Gary Vest, Director of Economic Development
of the Paris Economic Development Corporation.
SUPPLEMENTAL MATERIALS: See attached resolution for consideration.
COUNCII, DATE: Consider for adoption at the City Council's special meeting of Wednesday, September
22, 2004.
FUTURE COUNCII, DATES: City staff anticipates presenting the tax abatement agreement for
consideration at Council's regularly scheduled meeting in October, 2004.
. .
,
CITY OF PARIS, PARIS, TEXAS TAX ABATEMENT AND REINVESTMENT ZONE DESIGNATION
APPLICATION
THISAPPLICATIONMUSTBERECEIVEDBYTHECITYNOTLESS THANSIXTY(60) DAYSPRIOR TO THE
DATE THAT CONSTRUCTION OF THE IMPROVEMENTS IS EXPECTED TO COMMENCE
1• NAME OF APPLICANT FIRM;
Paris Wazehouse 107, Inc.
2. ADDRESS:
2300 13m S.W., Paris, Texas 75460
3. TELEPHONE: 903-737-0522
4. PROJECT ADDRESS (if different from above):
2300 13th SW, Paris, Texas
5• TYPE OF BUSINESS ORGANIZATION (corporation, etc.):
_Corporatiion in the state of Texas
6. NAME(S) OF PRINCIl'AL OWNERS OR OFFICERS:
_.Woodrow WiLson Harper
_Susan Harper
7. IS THIS BUSINESS SEASONAL IN NATURE: YES X NO
8• NUMBER OF CURRENT EMPLOYEES: We Pack Paris Employees
(in Enterprise Zone) 76
(in City of Paris) 121
(in Lamaz County) 127
9. CURRENT PAYROLL (in City of Paris): $ 50,000 weekly
10. NUMBER OF NEW JOBS PROPOSED: 30
11. LIST TFE TYPE AND NUMBER OF NEW JOBS TO BE CREATED AND THE PROJECTED
SALARY FOR EACH JOB:
_20 Packagers, 5 Forklift Operators, 4 Clerical, 1 Supervision
12• PLEASE PROVIDE INFORMATION PERTAINING TO T'HE TRANSFER OF JOBS RELATED
TO TI-E IlVtpROVEMENTS OR EXPANSION:
This is based on moving current production in Sulphur Springs at one of our facilities to Paris and
the projected increase in business based on our customer feedback.
13. TOTAL IlVIl'ACT ON PAYROLL FROM NEW JOBS:
$470,000 annually
14. PRE-PROJECT MARKET VALUES, AS DETERMIINED FOR LOCAL PROPERTY TAXATION,
OF THE EXISTING FACILITY, SIT'E, TANGIBLE PERSONAL PROPERTY, AND
INVENTORY:
A. REAL PROPERTY: 5 acres @$1,500 per acre
$ 7,500
B. TANGIBLE PERSONAL PROPERTY $ 0
15. GNE A DETAILED DESCRIPTION OF THE PROPOSED IMPROVEMENTS OR EXPANSION
(ATTACH ADDITTONAL SHEETS, IF NECESSARY):
We are planning to add approxunately 172,000 square feet to our cwrent facility located at 2300
13" S. W., Paris, Texas with the conshuction of a new building joined to our cuirent building. In addition to
expanded warehousing to service our customers, we are going to expand our packaging azea to accommodate
our growing business.
16.
THE ESTIlMATED DATE OF COMPLETION OF THE IMPROVEMENTS:
Apri101, 2005
17. THE ESTIMATED DATE OF OPERATION OF THE IlVIPROVEMENTS OR EXPANSION:
April 0 1, 2005
18. ESTIMAT'ES OF AMOUNTS TO BE INVESTED:
A.
PURCHASE OF LANDBLJII,DiNG:
$
$15,000
B.
NEW BUILDING CONSTRUCTION:
$
C.
BUII,DING ADDTTIONS:
$
4,900,000
D.
IMPROVEMENTS TO EXISTIING BLDG.
$
20,000
E.
MACHIlNERY & EQIIIl'MENT:
$
3005000
F.
FURNITURE & FIXTURES:
$
10,000
TOTAL 1NVESTMENT AMOUNT
$
5,245,000
19. TOTAL INVESTMENT ELIGIBLE FOR ABATEMENT:
$ 5,245,000 from item 17 (please circle) A B C D E F
20. LIST THE TYPE AND VALUE OF ECONOMIC DEVELOPMENT INCENTIVES REQUESTED
(I.E., TAX ABATEMENT, LOCAL SALES TAX REFUND, SALE OF CITY-OWNED
PROPERTY, ETC.):
Tax Abatement $
Local Sales Tax as available through the Enterprise Zone $ $40,000
$
21. FOR TOTAL PERSONAL PROPERTY INVESTMENT INDICATED A.BOVE IN ITEM 19, LINES
E& F, SHOW PROJECTED DOLLAR VALUE IN EACH DEPRECIATTON SCHEDULE.
1. (7 yr) _$310,000 N. (16 yr)
U. (10 yr) V. (18 yr)
III. (12 Yr) VI. (20 Yr)
22. NORTH AMERICAN IlNDUSTRY CLASSIFICATION SYSTEM NUMBER: 4931 1 / 488991
23. NAME, ADDRESS, AND PHONE NUMBER OF CONTACT FOR THE PURPOSES OF THIS
APPLICATION:
David Owens, 2510 South Church, Paris, Texas 75460 903-783-7139
24. 1NDICATE THE DATE AND TDVIE THAT CITY OFFICIALS MAY INSPECT THE CURRENT
FACILITIES PRIOR TO THE COMMENCEMENT OF CONSTRUCTION:
August 16, 2204 through August 20, 2004, by appointment with David Owens
25. IF APPLICABLE, TBE NAME, ADDRESS, AND PHONE NUMBER OF ANY CONSULTANT/
FINANCIAL ADVISOR ASSISTIlVG YOU WITH THIS APPLICATION:
26. NAME AND TITLE OF PERSON WHO WII.,L HAVE AUTHORITY TO SIGN ANY
AGREEMENTS RELATED TO THIS APPLICATION:
Woodrow Wilson Harper
27. DO YOU INTEND TO SUBMIT AN ENTERPRISE PROJECT APPLICATION?
28. PLEASE ATTACH THE FOLLOWING:
l. A PLAT SHOWING THE PRECISE LOCATION OF THE PROPERTY, ALL
ROADWAYS WITHIN 200 FEET OF THE SITE, AND ALL EXISTIlNG ZONING
AND LAND USES WITHIN 200 FEET TO T'FE SITE.
2. IF THE PROPERTY IS DESCRIBED BY METES AND BOUNDS, A COMPLETE
LEGAL DESCRIPTION.
3. IF A RECENT APPRAISAL HAS BEEN DONE, ATTACH TBE SAME HERETO.
OTHERWISE, ATTACH A COPY OF THE PRINTOUT FROM THE LAMAR
COUNTY APPRAISAL DISTRICT WHICH SHOWS THE VALUE OF THE
PROPERTY. THIS PRINTOUT SHOULD BE AVAILABLE UPON REQUEST.
a
CERTIFICATIONS
1. THE APPLICANT, BELIEVES THE INFORMATION CONTAINED HEREIN AND
SUBMITTED HEREWITH IS COMPLETE AND CORRECT TO THE BEST OF HIS
OR HER KNOWLEDGE.
2. THE APPLICANT HEREBY CERTIFIES THAT THE EXPANSION OR
CONSTRUCTION OF IMPROVEMENTS THE SUBJECT OF THIS APPLICATION
HAS NOT BEEN COMMENCED.
3. THE APPLICANT UNDERSTANDS THAT INITIATION OF THE PROJECT PRIOR
TO RECEIVING FINAL LOCAL APPROVAL MAY RESULT IN THE LOSS OF
THE ABATEMENT.
4. THE APPLICANT UNDERSTANDS THAT, IF APPROVED, THE INFORMATION
CONTAINED IN THIS APPLICATION WILL FORM THE BASIS FOR A SIGNED
AGREEMENT BETWEEN THE APPLICANT FIRM AND THE CITY. STATE LAW
AND LOCAL POLICY REQUIRE ANNUAL MONITORING FOR COMPLIANCE TO
THAT AGREEMENT. FAILURE TO COMPLY MAY RESULT IN LOSS OF
INCENTIVES.
5. THE APPLICANT HEREBY CERTIFIES THAT THE FIRM IS CURRENT IN ALL
TAX OBLIGATIONS TO THE CITY OF PARIS.
COMPANY:
_Pa War h e 07, Inc.
By: lfle ( ignatu e
Name: David Owens
Title:_Vice-President - Operations
,
Date: August 16, 2004