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07-B Ord. Creat ReinvestmentAGENDA INFORMATION SHEET PROJECT: Consideration of an ordinance establishing Reinvestment Zone No. 10 for tax abatement purposes. BACKGROUND: As a preliminary step to approval of a tax abatement agreement, Section 312.201 of the Texas Tax Code requires a municipality by ordinance to designate as a reinvestment zone an area of real property wherein the improvements subject to tax abatement are located. Paris Warehouse 107, Inc. has applied for a tax abatement applicable to a portion of properly adj acent to the existing Paris Warehouse 107, Inc.'s facility. Therefore, the City Council must consider formal action on an ordinance establishing a reinvestment zone on the designated property. This zone will be designated as Reinvestment Zone No. 10. DESCRIPTION: The enclosed ordinance satisfies State law requirements for an ordinance designating a reinvestment zone area. The area referenced in the ordinance is that area where the real property improvements subject to tax abatement will be constructed by Paris Warehouse 107, Inc. RECOMMENDED ACTION: Approval of the enclosed ordinance. STAFF CONTACT: Larry W. Schenk, City Attorney, and Gary Vest, Director of Economic Development of the Paris Economic Development Corporation. LOCATION: The property is located at the existing Paris Warehouse 107, Inc. facility, 2300 13`'' S.W., Paris, Texas. SUPPLEMENTAL MATERIALS: See attached ordinance along with the accompanying description of the reinvestment zone. COUNCIL DATE: Consider for adoption at the City Council's regular meeting of Thursday, October 7, 2004. FORM ENTERPRISE ZONEUAPIICE\WAREHOUSE\Ordinance Establishing Zone -w-o hrg LAST REVISED 3/7/2001 by LWS ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, PROVIDING THAT THE CODE OF ORDINANCES, CITY OF PARIS, BE REVISED BY AMENDING CHAPTER 30 OF SAID CODE; PROVIDING FOR THE ESTABLISHMENT OF REINVESTMENT ZONE NO. 10; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE OF OCTOBER 7, 2004. WHEREAS, the City Council of the City of Paris, Paris, Texas, desires to promote the development or redevelopment of a certain contiguous geographic area within its jurisdiction by the creation of a reinvestment zone for commercial and industrial tax abatement, as authorized by the Property Redevelopment and Tax Abatement Act, as amended; and, WHEREAS, on the 19th day of September,1996, and the 7th day of August,1997, hearings before the City Council were held, and the City, at such public hearings, invited any interested person to appear and speak for or against the designation of an area of the City of Paris as an enterprise zone; and, WHEREAS, the City Council of the City of Paris did heretofore, on the 14th day of October, 1996, in Ordinance No. 96-060, which was amended on the 11 th day of August,1997, by Ordinance No. 97-039, nominate an area of the City of Paris as a state-designated enterprise zone; and, WHEREAS, the City Council of the City of Paris did heretofore, on the 4th day of December, 1997, in Resolution No. 97-146, authorize the execution of the Agreement for Designation of an Enterprise Zone which designated an area of the City as an enterprise zone known as the City of Paris Enterprise Zone; and, WHEREAS, V.T.C.A., Tax Code, Section 312.2011, states that designation of an area as an enterprise zone constitutes designation of the area as a reinvestment zone without the necessity of further hearing or other procedural requirements; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. Section 2. That the City has made the following findings and determinations: a) That the boundaries of a proposed reinvestment zone are described by metes and bounds and depicted on the plat attached hereto as Exhibit A, hereinafter referred to as Reinvestment Zone No. 10; and, b) That creation of the proposed reinvestment zone will result in benefits to the City and to land included in the zone and that the improvements sought are feasible and practical; and, c) That the proposed reinvestment zone meets the criteria for the creation of a reinvestment zone as set forth in the Property Redevelopment and Tax Abatement Act, as amended, in that it is "reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City"; and, d) That the proposed reinvestment zone meets the City's guidelines and criteria for the creation of a tax abatement reinvestment zone and is eligible for tax abatement. Section 3. That, pursuant to the Property Redevelopment and Tax Abatement Act, as amended, the City hereby creates a reinvestment zone for commercial and industrial tax abatement encompassing only the area described by the metes and bounds description and depicted on the plat attached hereto as Exhibit A, and such reinvestment zone is hereby designated and shall hereafter be referred to as Reinvestment Zone No. 10 of the City of Paris, Paris, Texas. Section 4. That the zone shall take effect on October 7, 2004, and shall remain designated as a commercial and industrial reinvestment zone for a period of seven (7) years from such date of designation. Section 5. That, to be considered for execution of an agreement for tax abatement, the commercial and industrial project shall: a) Be located entirely within the designated zone; and, b) Be reasonably expected to increase the appraised value of the property; and, c) Be expected to prevent the loss of employment, retain, or create employment on a permanent, full-time basis in the City during the term of the Agreement; and, d) Not be expected to solely or primarily have the effect of inerely 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; and, e) 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, subj ect 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; and, fl Not include property that is owned or leased by a member of the City Council of the City of Paris nor by a member of the Planning and Zoning Commission; and, g) Conform to all the requirements of the City's zoning ordinance; and, h) Be consistent with the comprehensive plan of the City of Paris. Section 6. That written agreements with the property owner(s) located within the zone 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 facility, nature of construction, time schedule, plat, property description, and improvement list, as provided in the Application; fl 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 zone during the period that property tax exemptions aze in effect; h) that access to the project be 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 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 Council that the owner is in compliance with each applicable terxn 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 Council may cancel or modify the agreement if the property owner fails to comply with the agreement. Section 7. That if any section, paragraph, clause, or provision of this Ordinance shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance. Section 8. That it is hereby found, determined, and declared that a sufficient notice of the date, hour, place, and subj ect of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times as required by the Open Meetings Act, V.T.C.A., Government Code, Chapter 551. Section 9. That this Ordinance shall take effect immediately from and after its passage by the City Council. PASSED AND ADOPTED this 7th day of October, 2004, by the City Council of the City of Paris, Paris, Texas. Curtis Fendley, Mayor ATTEST: Sherian Dixon, Assistant City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney DESCRIPTION OF REINVESTMENT ZONE NUMBER TEN All that certain tracts or parcels of land situated in Lamar County, Texas, described as follows: First Tract: (unplatted lot) A part of the James Bourland Survey No. 69, located in Lamar County, Texas, and being that portion of the Southwest Industrial Park No. 1 as shown on Exhibit "A" hereto attached, located at the Northeast corner thereof and shown as being North of a 120 foot rail and utility right-of-way and East of the East Boundary line of a tract of land depicted as a 17.9 acre tract on Exhibit "A" hereto attached, and being the tract depicted as containing 21.8 acres, more or less. Second Tract: All the certain property in the James Bourland Survey, No. 69, and being a part of the Southwest Industrial Park No. 1, a plat of which is attached hereto as Exhibit "A" and described as follows: Being Lots lA, 2A, 3A, 4A as shown on said Exhibit "A" and that portion of Lot 3-B described as follows: BEGINNING at the Northeast corner of Tract 3B; THENCE South with the East Boundary line of Tract 3B a distance of 367 feet, to a stake; THENCE West parallel with the North Boundary line of Tract 3B a distance of 367 feet, to a stake in the Northwest corner of same; THENCE North with the West Boundary line of Tract 3B a distance of 367 feet, to a stake in the Northwest corner of same; THENCE East with the North Boundary line of Tract 3B 1998 feet to the place of beginning. Third Tract: All that certain property being a part of the Asa Jarman Survey, Abstract 479, and the James Bourland Survey, Abstract 069, also being Tract 2 conveyed to James L. Clifford and Geraldine Clifford by deed recorded in Volume 644, Page 941, of the Lamar County Deed Records, and being further described as follows: Beginning at an iron pin found at the Southeast corner of said Tract 2 and in the North Line of Lot 5-A of Paris Industrial Park No. 1 as shown by plat recorded in Envelope 286-A of the Lamar County Plat Records, and being further described as follows: Thence West with the South Line of Tract 2 and with the North Line of said Lot 5, (same line called West in Volume 655, Page 941, and used as the bearing base) a distance of 925.56 to an iron pin found at the Southwest corner of Tract 2, at the Northwest corner of Lot 5, in the East right-of-way of the Sante Fe Railroad, and in a curve to the left having a radius of 5495.85 feet; Thence Northeasterly with said East right-of-way the following: Around said curve to the left, long chord bears North 42° 11' 5 6" East a distance of 1233.84 feet, an arc distance of 1236.45 feet to a point for corner; South 54° 14' 47" East a distance of 12.96 feet to a point for corner in a to the left having a radius of 5508.74 feet; EXH i BIT L Around said curve to the left, long chord bears North 29° 57' 00" East a distance of 1113.34, an arc distance of 1115.24 feet to an iron pin found corner; North 64° 10' 33" West a distance of 12.89 feet to an iron pin found for corner in a to the left having a radius of 5495.85 feet; Around said curve to the left, long chord bears North 22° 37' S8" East a distance of 291.10, an arc distance 291.13 feet to point at the northwest corner of Tract 2; Thence South 68° 53' OS" East a distance of 4.41 feet to an iron pin found at the Northeast corner of Tract 2 and in the West right-of-way of the former Southern Pacific Railroad, said point also being in a curve to the left having a radius of 3995.15 feet; Thence Southerly with said West right-of-way and around said curve to the left, long chord bears South 16° 32' 32" West a distance of 614.69, an arc distance of 615.30 feet to a point for corner; Thence South 14° 23' 5 1" West, continuing with said West right-of-way, a distance of 1605.00 feet to the place of beginning, and containing 15.704 acres of land. i 's i i ~ ~ , ~ ~ . , _ ~ ~ : ' . ~ : . . . . ; , ~ . . ~ ~ . ; : ~ f , . ~ • ~ . ~ ~ . . y ~ ~ 's i~ . . . . ~ ~ 1 . . . . i~.:I a ~ • R=5495.85 / Chord °53'05" E N 22°3T58' E point S~ ' 291.10 4.41 ' L=291.13 F.I.P. N 8933,~~.P R=3995.15 hord . S 16°32'32" 614.69 . ` =615.30 ~a e m ~ ~ - Polnt ~ , . ~ ~ ^4, h ^ ~ O ~ v s~ ~ " s Scale: 9" = 300' i, O P.O.B.=Point of Beginning F.I.P.=Found Iron Pin Point=Unmonumented Comer Point ~ -k o Chaney Engineering, Inc. Point (903) 784-6393 40 o File Name: WEPACK ' . 4 ~h • . ~`b. b6 ~ o v WEST (Record Bearinc F.I.P. 925.56 y ~ Lot 5, Blodc A Southwest Industrial Park No.1 Envelope 286-A L.C.P.R. a o c3 ^ a~ 15.704 Acres co i ~ ~ 0 C? ~ ~ ~ ~ ~ E n ~ ~'F'~►• . AC,~~.~,. • ^..y~,~+.. ~~~J)}l~~:L~y07~1~~• P.O.B. .I.P. s R. ERMiD'+JN CH.41EY A, `rvJ f _s ~~y~~. F5~1C 1 i~u (9~ t C)