07-A K-C Tax Abatement Res
DRAFT
F:A TIORNEY\R.ESWORK\CURREN1\ K-C Tax Abatements Agreement Res
Sepœmber28,2005
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, APPROVING AND AUTHORIZING A TAX ABATEMENT
AGREEMENT WITH KIMBERLY-CLARK CORPORATION; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris has been presented a proposed agreement
by and between the City of Paris, Paris, Texas, and Kimberly-Clark Corporation, providing for a
commercial and industrial tax abatement for certain improvements, a copy of which is attached
hereto and incorporated herein by reference hereinafter called "AGREEMENT"; and,
WHEREAS, upon full review and consideration of the AGREEMENT, and all matters
attendant and related thereto, the City Council is of the opinion that the terms and conditions thereof
should be approved, and that the Mayor should be authorized to execute it on behalf of the City of
Paris; 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 terms and conditions of the proposed AGREEMENT, having been
reviewed by the City Council of the City of Paris and found to be acceptable and in the best interests
of the City of Paris and its citizens, be, and the same are hereby, in all things, approved.
Section 3. That the Mayor is hereby authorized to execute the AGREEMENT and all other
documents in connection therewith on behalf of the City of Paris substantially according to the terms
and conditions set forth in the AGREEMENT.
Section 4. That the terms of the Tax Abatement Agreement and the property the subject
thereof meet the Guidelines and Criteria heretofore adopted by the City of Paris by Resolution No.
2004-165, passed September 22,2004.
Section 5. That, by hereby granting the tax abatement, there will be no substantial adverse
effect on the provision of City services or on its tax base.
Section 6. That the planned use of the property the subject of the tax abatement will not
constitute a hazard to public safety, health, or morals.
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Section 7. That this approval and execution of the AGREEMENT on behalf of the- City is
not conditional upon approval and execution of any other tax abatement agreement by any other
taxing entity.
Section 8. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this the 10th day of October, 2005.
Curtis Fendley, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
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THE STATE OF TEXAS )
)
COUNTY OF LAMAR )
TAX ABATEMENT AGREEMENT
This agreement is entered into by and between the CITY OF PARIS, PARIS,
TEXAS, a municipal corporation, situated in Lamar County, Texas, acting by and
through its authorized officer whose signature appears below (hereinafter called
"CITY"), and KIMBERLY-CLARK CORPORATION, acting by and through its
authorized officer whose signature appears below (hereinafter rèferred to as "OWNER").
WITNESSETH:
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WHEREAS, the City Council of the City of Paris did heretofore, on the 22nd day
of September, 2004, in Resolution No. 2004-164, elect to be eligible to participate in tax
abatement agreements in order to maintain and enhance the commercial and industrial
economic and employment base of the Paris area for the long term interest and benefit of
the City and its citizens; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 22nd day
of September, 2004, in Resolution No. 2004-165, pass and adopt a policy on tax
abatement incentives; and,
WHEREAS, the policy on tax abatement incentives constitutes appropriate
guidelines and criteria governing tax abatement agreements to be entered into by the
CITY as required by the Property Redevelopment and Tax Abatement Act, as amended;
and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 10th day
of October, 2005, pass Ordinance No.2005-_, establishing a Reinvestment Zone in
the City of Paris, hereinafter called CITY, for commercial and industrial tax abatement
(hereinafter referred to as the "ORDINANCE"), as authorized by the Property
Redevelopment and Tax Abatement Act, Chapter 312, Texas Property Tax Code, as
amended (the "Act"); and,
WHEREAS, in accordance with the Act, with proper notice to the public, a
public hearing to consider the Ordinance was held on October 10, 2005, during a regular
meeting of the City Council, Love Civic Center, 2025 South Collegiate Drive, Paris,
Texas, during which all interested persons were allowed to appear and be heard;
WHEREAS, the contemplated use of the PROPERTY, as hereinafter defined, the
contemplated improvements to the PROPERTY in the amount as set forth in this
AGREEMENT, and the other terms hereof are consistent with encouraging development
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EXHIBIT A
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of said Reinvestment Zone in accordance with the purposes for which it was created and
are in compliance with the CITY's policy on tax abatement incentives and the ordinance
creating such Reinvestment Zone adopted by the CITY and all applicable laws; NOW,
THEREFO RE,
The Parties hereto do mutually contract and agree as follows:
I.
Term
1.1 The term of this AGREEMENT shall begin on the 10th day of October,
2005, with, as hereinafter provided, tax abatement granted herein beginning with the tax
year beginning January 1,2007, and expiring on December 31,2016.
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II.
Area to be Improved
2.1 The PROPERTY to .be the subj~ct of this AGREEMENT shall be that
PROPERTY described in Exhibit A, attached hereto, which is made a part hereof and
shall be hereinafter referred to as PROPERTY (the Reinvestment Zone).
III.
Improvements
3.1 The OWNER's current facilities consist of land, buildings, and other
structural improvements, all as shown on Exhibit B, attached hereto. The OWNER shall
make improvements to the PROPERTY in the locations shown on Exhibit A attached
hereto, as follows: The OWNER will add one robotic unitizing cell, associated conveying
and controls, and distribution infrastructure improvements. Included in the distribution
infrastructure improvements will be a building sprinkler upgrade, decoupling of existing
palletizers, additional palletizing capability on current equipment, improved divert table
scanning and the addition of a mega bailer on the South side of the building. Additional
manufacturing support space and engineering project preparation and equipment storage
requirements of approximately 121,000 square feet will be added west of the existing
Child Care South spline area (described by survey in Exhibit C attached hereto) to
support Baby and Child Care material flows, shipment of finished goods, and provide
replacement space that will be lost to planned unitizing capacity increases, all of which
will be particularly described in CITY'S Certificate of Completion prepared for City by
Owner and verified by City after the completion and installation of the improvements and
machinery herein described, which shall be furnished to and filed with the Chief
Appraiser of the Lamar County Appraisal District. Said Certificate shall be duly
executed by the Mayor of the City of Paris in the form attached hereto as Exhibit D. The
purpose of the improvements is to improve the effectiveness of the Paris Operations and
Distribution functions by increasing the OWNER'S manufacturing support space, and
adding capability to automatically palletize retail cases. The improvements described in
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this paragraph shall be hereinafter referred to as IMPROVEMENTS. The
IMPROVEMENTS will be at a cost equal to or in excess of $4,500,000.00 for building
additions, $250,000.00 for improvements to the existing building, and $4,750,000.00 for
purchase and installation of machinery and equipment, for a total investment of
$9,500,000.00, and shall be substantially completed on or about August 1, 2006;
provided, that OWNER shall have such additional time to complete the
IMPROVEMENTS as may be required in the event of "force majeure" if OWNER is
diligently and faithfully pursuing completion of the IMPROVEMENTS. For this
purpose, "force majeure" shall mean any contingency or cause beyond the reasonable
control of OWNER including, without limitation, acts of God, or the public enemy, any
natural disaster, war, riot, civil commotion, insurrection, governmental or de facto
governmental action, unless caused by acts or omissions of OWNER, fires, explosions,
accidents, floods, and labor disputes or strikes. The date of completion of the
, ,IMPROVEMENTS shall be defined as the date a Certificate of Occupancy is issued by
the City of Paris, or as otherwise agreed in writing by the parties.
IV.
Consideration
Improvements
4.1 The OWNER agrees and covenants that it will diligently and faithfully, in
a good and workmanlike manner, pursue the completion of the IMPROVEMENTS. As a
good and valuable consideration of this AGREEMENT, OWNER further covenants and
agrees that all construction of the IMPROVEMENTS \vill be in accordance with all
applicable state and local laws, codes and regulations or will procure a valid waiver
thereof. In further consideration, OWNER shall thereafter, from the date a Certificate of
Occupancy is issued or the IMPROVEMENTS are completed as agreed, until the
expiration of this AGREEMENT, continuously operate and maintain the PROPERTY,
including the specific units of new equipment as identified herein, as a production and
manufacturing plant.
V.
Consideration
Jobs
5.1 The OWNER currently has in excess of 800 permanent full-time
employees at the existing site. The OWNER does not anticipate creating additional jobs
as a result of the addition of the IMPROVEMENTS described herein.
5.2 The OWNER will retain sufficient employment levels to efficiently
support its plant operations.
VI.
Default
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6.1 In the event that (a) the IMPROVEMENTS for which an abatement has
been granted are not completed in accordance with this AGREEMENT or the
expenditure for the IMPROVEMENTS does not meet the amount required herein; or (b)
OWNER allows its ad valorem taxes owed the CITY to become delinquent and fails to
. timely and properly follow the legal procedures for protest or contest of any such ad
valorem taxes; or (c) OWNER materially breaches any of the other terms and conditions
of this AGREEMENT, then this AGREEMENT shall be in default. In the event the
OWNER defaults in its performance of either (a), (b) or (c) above, then the CITY shall
give the OWNER written notice of such default and if the OWNER has not cured such
default within sixty (60) days of said written notice, this AGREEMENT may be modified
or terminated by the CITY. Notice shall be in accordance with paragraph 13.3. As
liquidated damages in the event of default, and in accordance with the requirements of
Section 312.205 (c) of the Property Tax Code of the State of Texas, all taxes which
, ,otherwise would have been paid to the CITY without the benefit of abatement, together
with interest to be charged at the statutory rate for delinquent taxes as determined by
Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted
by the Property Redevelopment and Tax Abatement Act and the Property Tax Code of
the State of Texas, shall be recaptured and will become a debt to the CITY and shall be
due, owing, and paid to the CITY within sixty (60) days of the expiration of the above-
mentioned applicable cure period as the sole remedy of the CITY, subject to any and all
lawful offsets, settlements, deductions, or credits to which OWNER may be entitled. The
parties acknowledge that actual damages in the event of default and termination would be
speculative and difficult to determine.
VII.
Tax Abatement
7.1 Subject to the terms and conditions of this AGREEMENT, and subject to
the rights and holders of any outstanding bonds of the CITY, a portion of ad valorem
property taxes from the PROPERTY otherwise owed to the CITY shall be abated. Said
abatement shall be an amount equal to one hundred percent (100%) of the taxes assess€d
upon the increased value of the REAL PROPERTY IMPROVEMENTS over the value in
the year in which this AGREEMENT is executed and one hundred percent (100%) of the
taxes assessed upon the NEW TANGIBLE PERSONAL PROPERTY described in
Section III of this agreement, other than inventory and supplies, not previously located on
the property in accordance with the terms of this AGREEMENT and all applicable state
and local regulations or valid waiver thereof; provided that the OWNER shall have the
right to protest or contest any assessment of the PROPERTY and said abatement shall be
applied to the amount of taxes finally determined to be due as a result of any such protest
or contest. For the purposes of this AGREEMENT, the initial value of the existing real
property (not subject to abatement) shall be deemed to be the value as shown on the tax
rolls of the Lamar County Appraisal District as of January 1 of the year in which the
AGREEMENT is executed, said amount being $15,244,600.00 for Land and Buildings.
The current abatement which is the subject of this AGREEMENT shall extend for a
period often (10) years beginning January 1,2007.
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7.2 The abatement granted herein shall be subject to and governed by the
Guidelines and Criteria for Tax Abatements, a copy of which is attached hereto as
Exhibit E, and OWNER shall comply with the requirements of Exhibit E in the
performance of this AGREEMENT, save and except that, in the event of a conflict
between the requirements of Exhibit E and this AGREEMENT, this AGREEMENT shall
control.
7.3 Owner covenants and agrees that subsequent to the date of this
AGREEMENT, any application by OWNER for a new tax abatement for equipment or
real property located within the PROPERTY and the Investment Zone applicable to this
AGREEMENT shall be subject to and governed by the CITY's Criteria and Guidelines
for Tax Abatement in effect at the time of the new application, and not by the Criteria
, ,and Guidelines utilized for this Agreement.
VIII.
No Conflict of Interest
8.1 The OWNER represents and warrants that the PROPERTY does not
include any property that is owned or leased by a member of the Planning and Zoning'
Commission of the City of Paris, nor by a member of the City Council approving, or
having responsibility for the approval of, this AGREEMENT.
IX.
Conditions
9.1 The terms and conditions of the AGREEMENT are binding upon the
successors and assigns of all parties hereto.
9.2 It is understood and agreed between the parties that the OWNER, in
performing its obligations hereunder, is acting independently, and the CITY assumes no
responsibility or liability in connection therewith to third parties; and OWNER agrees to
indemnify and hold harmless the CITY therefrom. It is further understood and agreed
among the parties that the CITY, in performing its obligations hereunder, is acting
independently, and the OWNER assumes no responsibility or liability in connection
therewith to third parties and, to the extent permissible by law, the CITY agrees to
indemnify and hold harmless the OWNER therefrom.
x.
Compliance Provisions
10.1 The OWNER agrees that the CITY, its agents and employees, shall have
the reasonable right of access to records concerning the OWNER's investment in the
IMPROVEMENTS for the purpose of conducting an audit of the project improvements
and project costs. Any such audit shall be made only after giving the OWNER notice at
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least fourteen (14) days in advance and will be conducted in such a manner as to not
unreasonably interfere with the operation of the facility. Upon request, the OWNER will
provide the CITY with a detailed Asset Report with an itemized list of assets placed into
service from the date of execution of this AGREEMENT to the date of completion. The
Asset Report will provide for each asset a unique serial and/or other identification
number (if available ),the date on which the asset was capitalized, the acquisition amount,
and the accumulated depreciation amount. At the CITY's request, the OWNER will
provide actual invoices to support the amounts shown on the Asset Report.
10.2 The OWNER further agrees that the CITY, its agents and employees, shall
have reasonable right of access to the PROPERTY to inspect the IMPROVEMENTS in
order to insure that the construction of the IMPROVEMENTS are in accordance with this
AGREEMENT and all applicable state and local laws and regulations or valid waiver
, ,thereof. After completion of the IMPROVEMENTS, the CITY shall have the continuing
right to inspect the PROPERTY to insure that it is thereafter maintained and operated in
accordance with this AGREEMENT during the term of the AGREEMENT. All
inspections will be made only after giving the OWNER notice at least seventy-two (72)
hours in advance, and such inspections shall be conducted in such a manner so as not to
interfere with the operation of the facility. Representatives of the CITY inspecting the
PROPERTY and improvements shall be accompanied by one (1) or more representatives
of the OWNER and shall sign an agreement promising to maintain the confidentiality of
any information they obtain in connection therewith except for the purposes of assessing
and collecting ad valorem taxes and verifying or enforcing compliance with this
AGREEMENT. Said representative shall also be required to observe any facility rule
and regulation applicable to the PROPERTY. Nothing herein shall be construed as
limiting the CITY's ability to perform inspections or to enter the PROPERTY the subject
of this AGREEMENT.
XI.
Initial and Annual Reporting
11.1 The OWNER further agrees that it will, within thirty (30) days of
completion of the IMPROVEMENTS, provide CITY with a' sworn report, written on
company letterhead and signed by a designated representative of OWNER, which
contains the following information:
(a)
Copy of the printout from the Lamar County Appraisal District showing
the market value of the PROPERTY prior to the construction of the
IMPROVEMENTS;
(b)
Detailed description of IMPROVEMENTS;
(c)
Copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by CITY's
certification team;
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(d)
(e)
Detailed list of and actual cost of added machinery and equipment; .
Actual cost of capital IMPROVEMENTS; and,
(f)
Date of substantial completion of the IMPROVEMENTS as defined in
paragraph 3.1 hereof.
11.2 The OWNER further agrees that it will provide CITY with an annual,
sworn report which shall certify, in writing, that it is in compliance with each applicable
term of this AGREEMENT. Such annual report shall be furnished in such form as the
City shall require.
11.3 In addition to the annual report required under Section 11.2 hereof, the
OWNER further agrees that it will provide CITY a copy of the Employer Reference
summary page of its Texas Workforce Commission Employer's Quarterly Report within
thirty (30) days of its filing of the same with the Texas Workforce Commission. The
OWNER will provide an affidavit signed by the Plant Manager or an Officer of the
Company certifying that the information provided in the summary page is a true and
valid report filed with the Texas Workforce Commission. .
XII.
Authority to Contract
12.1. This AGREEMENT was authorized by resolution of the City Council at
its regularly scheduled meeting on the 10th day of October, 2005, authorizing the Mayor
to execute the AGREEMENT on behalf of the CITY.
12.2 This AGREEMENT was entered into by KIMBERLY-CLARK
CORPORATION pursuant to the authority granted to the authorized official whose
signature appears below.
12.3. This AGREEMENT shall constitute a valid and binding AGREEMENT
between the CITY and OWNER when executed in accordance herewith, regardless of
whether any other taxing unit executes a similar agreement for tax abatement.
XIII.
Legal
13.1 No officer, official or agent of the CITY has the power to amend, modify
or alter this AGREEMENT or waive any of its conditions or to bind the CITY by making
any promise or representation not contained herein.
13.2 This AGREEMENT, except by operation of law, shall not be assigned or
transferred by OWNER, without the prior written consent of CITY, which consent shall
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be at the sole discretion of the CITY.
13.3 Any written notice required or permitted under the terms of this
AGREEMENT shall be given and be deemed to have been duly served if either (1)
. delivered in person, or (2) deposited certified mail, return receipt requested, postage
prepaid in the United States mail, addressed to the designated representative of the
respective parties which are designated as follows:
OWNER
KIMBERLY-CLARK CORPORATION
Attn: Charles Lynch, Plant Manager
, ,2466 F. M. 137
Paris, TX 75460
CITY
City Manager
City of Paris
P. O. Box 9037
Paris, Texas 75461-9037
With a Copy To:
Mr. R. Richard Rhodes
Ryan & Company
13155 Noel Road, 12th Fl., LB-72
Dallas, Texas 75240
City Clerk
City of Paris, Texas
P. O. Box 9037
Paris, Texas 75461-9037
13.4 If any term or prOVISIon of this AGREEMENT shall be declared
unconstitutional or void by any court of competent jurisdiction, the constitutionality and
validity of the remainder of said AGREEMENT shall not be affected thereby, and to this
end the terms and provisions of said AGREEMENT are declared to be severable.
13.5 This AGREEMENT sets forth the entire understanding between the
parties, and any other understandings or agreements shall be canceled and superseded by
this AGREEMENT upon the date of execution hereof. None of the terms of this
AGREEMENT shall be waived, discharged, altered or modified in any respect, except by
an Agreement in \vriting signed by both parties and specifically referring. to this
AGREEMENT. The captions in this AGREEMENT are included for convenience only
and shall not be taken into consideration in any construction or interpretation of this
AGREEMENT or any of its provisions. This AGREEMENT is performable in Lamar
County, Texas, and shall be governed by, construed and enforced in accordance with the
laws of the State of Texas. The provisions of this AGREEMENT shall apply to, bind and
inure to the benefit of the CITY, OWNER, and their respective successors, and permitted
assigns, if any.
13.6 Venue for any actions arising under this AGREEMENT shall lie
exclusively in the courts of Lamar County, Texas, for any state court action, and in the
U.S. District Court for the Eastern District of Texas for any Federal Court action.
Witness our hands this 10th day of October, 2005.
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CITY OF PARIS, PARIS, TEXAS
By:
Curtis Fendley, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
KIMBERLY-CLARK CORPORATION
By:
David L. Bernard, Vice President - Taxes
ATTEST:
Secretary
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Exhibit A
(Reinvestment Zone Property)
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Exhibit B
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Survcy ¡t ~n cl cor.~... of said Jones ct;.a1 tract of 1and~ said poInt. bcSn9 the
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f,.~ th~ Jnost C.1stcrly Southeast corner of said Joncs ct 31 tract. or land¡
Thence l:ortb 34 Deg. East a dista~'c(! of ')50 ft. to an iron prn (or corn~r
at the Horlh'.-cst 'corl1~r of saId PðrtrJðge tract. of lao,d; - . .
,Thence Soulh S9 Dcg. ~S -line (ast ð distance of 200 ft. to.)n ii-on pIn for
(orner at Ule J~orlhcast corner, of :5aSd rarld"ge lract. of land;
Thence ..10ng lhc I-!cst Boundary l in~ of f41:rJ:8 Road 137 as fo11o\\"S: J.,'o'ur.d a
curv~ to 10= left 184 ft.; J~orlh êS DI!,9. 35 l,~jn. [.ast 75 ft.; r:orth 31 Dc9. 30
'oan. r3~t 616 ft. to an iron ptn for corl1cr;
Thcn.ce J.:'t'st ¡ distance of 2826 ft. lo the pJ.,cc of bcgin!1!n9
SUBJECt totoll And gas lease dated Au~ust 7,1982, to Chalmcra
OperAting Comp~ny, appearing of record in Book 12, ~ge 9a, Oil ðnðCðs
LeASQ Records of La~r County, Texas, ðnd AS ðmo~deð on July 6, 1982,
between Donna Jones et al .and .00\1 CheJltica,l Company (successor to ChalII!.Cr.
O~ratin9 company), and easemenU in favor ot 'rexa8 fower , Light'
Col11panYas appear. of record. and a8 shcnm on IUXVCY m4de by J' M Nel',on '.00
~g1.tered Fublic Survoyor of Teu8. No. 402S, d4teC1 April 22 '19Š2 and ~ '
the ¡:sðrvatl0Q of 1/16tb non-participating :oya1ty interest for'lS'yeàr8
J8t.4 e :in ~ed cåtðd 1i9 22, 1971.J. from Jack lUnkhead Will1&%U et &1 to
. 1>. McLåu¡h1in J:.co~d4d in Book 5:.1.1, l'ag. 735, L&œ&r County Ð5ed ~cord.Þ
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Situ~\cd "bout. 2~ Inncs South SO Ðcg. '.1cst of the! Ci ly or Pa."h; Collnty of' tðU\,H
neS S\-,lc of Tc7.U, a p3."t o( the Jsa~c: C,-u\sc SUI"VCY 1)62, l\~a Jðl..:'.i\n SUI"VCY t419 :
nð lh~ lc::1u~l r\~cr SÚ,-\'cy 13]3, and being ill t'.ðC~ ofl~od convc.)'cd U',c ri)ds, Tcx~~
nduslrhl roul,($¡\ton by deed ,.ceo,"ded ~n Vo'. 550, rðg~ SS6. of the O;-cd ~cco,.ð~ or
¡td County and State. :
Ucg¡r,ntng ~ t 11\ "-on pin for co\.n~r in t1te South Sounda,.; l ~ ne of l11e Tcus ~I\d
'ðdric: ~anl-o)d at the I:OI-UMcSt co,'t\C:r or s¡,d rovnd.)l~on tract of 1;)nð, saId l'otnt
:cS8\g lnc II:O~t Uo'"lhel"ly UorLhca~t. co.-.,cr of' a tr~ct. of '1and col'\\'cycd C~nn! Jt')I\e$ ct
1:1 d«zed, n:col"cScd 5n \'01. 584, r4lgc 579. of sa f c3 Deed Pecot"d'S., . 0
Then,e South at 636 ft. an iron pin on ð poo1 b:\nk ~od c.ont.fnvtl"IS on ð löta' cBs
tance of ]OS ft. 1.0 a po'nt (or co¡oncr in said pool ~t the Sov\.1"-Icst corner of staid
.cundJUon lract. of 1.,nd and ¡)n ~1 co'oner or said Jones ct ~, trc\cl of ~~nd:
. Th~nc.C alol'9 th~ South Boundå."y l inc of said rOUI\cf.1lfon l..."ct ~S rOnC\~: Soul
'~89 Cc~. East 33 I-iin. East 3)82 ft.. r:orlh 89 Dcg. [as.t 1551 ft. 1.0 an ¡,'on p~n
ror corner ¡t the Southeast. corocr of $aid fo"h&1.~on tract of 1ðnd and the: l:orthcc\St
:orilc:r, of said Jon~S ct al t'.ðct of 1anð;
Thc:nc.e: r~dt'th 31 0"9.30 Hin. E'ast alot1g the Wc:st Gout1~r'y l\nc: or f"lrQ Road 137'
cHst~I"c:,of 310 (t. to a concrete: ~r"cr for corner:
Thence: along the Sout.nc:rlyBoundlry lin~ of looP 1t\-I.1. 285 as 'fO"C',1S: Uotln Z Ce,
1S JoHn. ~~st 214 ft.. North 39 Oèg. 15 Inn. Wcst 654 ft.: "°..(.11 49 Des. 15 Hin; 1-:cst
JOZ 'ft,; J:orth ~4 Deg. West ~]6 ft. to a concrete rn~\-1:c:r for corner at t~ ~st. J:orth
cr1y r:orLht!ut èor,,~r.of said foün<btfon tr~ct. or 'and~ ! - o. .. 0
7h~nc:e South/S Dcg. 1-!cst a1ong the South Sout1do .
ar:¡lin: cr sHd Tcx~s ~nd Pacific: ~i1road: -
\1 <Shhncc, of 3864 ft. to tJH: .p1¡ce of,
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Exhibit C
(Real Property Improvements)
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FIELD NOTES
2.81 Acres
Kimber1y~Clark Corporation
Lemuel Ewer Survey, A-313
City of Paris.
Lamar County, Texas
Being 2.81 acres of land, situated within the Corporate Limits of the City of Paris,
County of Lamar, State of Texas, also bßing part of the Lemuel E\ver S~rvey, Abstract'
No. 313, also being part ora tract of land conveyed from The Paris, Texas Industrial
Foundation, Inc. to Kimberly-Clark Corporation on March 22, 1982, recorded in Vol.
,.647, Page 247 of the Deed Records of said County, also being part of Tract I, conveyed
from Donna Jones, Anne Hutto and Brenda Biard to Kimberly-Clark Corporation on July
19, 1982, recorded in Vol. 647, Page 239 of the Deed Records of said County. The said
2.81 acre tract of land being described more particularly in metes and bounds as follo\vs:
Beginning at a set iron rod at the most Southerly comer of the said 2.81 acre tract
of land, said comer also being N 11055' 12" E, a distance of518.81 feet ITom a found'
iron rod at the Southeast comer of the Isaac Survey, Abstract No. 162, the said found iron
rod also being the North\vest comer of Tract II, conveyed from Donna Jones, Anne Hutto
and Brenda Biard to Kimberly-Clark Corporation on July 19, 1982, recorded in Vol. 647,
Page 239 of the Deed Records of said County, the said iron rod also being in the South
boundary line of said Tract I;
Thence N 13028' 50" vV, along the vVest boundary line of the said 2.81 acre tract
of land, a distance of272.14 feet to a set iron rod;
Thence N 760 31' 11" E, along the North boundary line of the said 2.81 acre tract
of land, a distance of 450.00 feet to a building comer;
Thence along the edge of said building, S 13028' 50" E, a distance of272.14 feet
to a building comer;
Thence S 760 31' 11" W, along the South boundary line of the said 2.81 acre tract..
of land, a distance of 450.00 feet to the point of beginning, containing 2.81 acres of land.
I, KENNETH RAY JONES, REGISTERED PROFESSIONAL LAND SURVEYOR,
#3332, STATE OF TEXAS, HEREBY CERTIFY THE ABOVE WAS TAKEN FROM
MEASUREMENTS MADE UPON THE GROUND.
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KENNETH RAY JONES
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Exhibit D
(Certificate of Completion)
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CERTIFICATE OF COMPLETION
ST ATE OF TEXAS
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COUNTY OF LAMAR
CITY OF PARIS
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The City of Paris has included the property described in Exhibit A attached hereto into
Reinvestment Zone Number [] and executed a tax abatement agreement with [] for certain
improvements or repairs.
[] has complied with all terms of the tax abatement agreement and the City of Paris
herein verifies that the improvements agreed to be built or used \vere in fact completed, as
provided.
NOW, THEREFORE, the City of Paris authorizes that the property described herein
shall receive a tax abatement of []% of the taxes assessed upon the increased value of the
improvements over the value in the year in which the tax abatement agreement was executed
for a duration of [] years, beginning January 1, [].
APPROVED this
day of
,
Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
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Exhibit E
(Guidelines and Criteria for Tax Abatement)
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RESOLUTION NO. 2004-165
A RESOLUTION OF THE, CITY. COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, 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 desires to promote economic development
within the corporate limits of the City of Paris and within its extraterritorial jurisdiction; and
\VHEREAS, the provision of certain economic development incentives may encourage
pÍ'óspective 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 pròcedures 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:
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 hereby establishes certain guidelines and criteria, 'attached
hereto as Exhibit A, governing tax abatement incentives \vithin the City of Paris and its
extraterritorial jurisdiction, and such guidelines and criteria shall expressly govern all subsequent
tax abatement agreements in the City of Paris and its extraterritorial jurisdiction.
Section 3. 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.
Section 4. That this resolution shall be effective from and after its date of passage.
,.--.
PASSED AND APPROVED this 22nd day of SePtembe~(a' H- Q
Curtis Fendley, Ma {"
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ATTEST:
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, Sherian Dixon, Assistant City Clerk
. . APPROVED AS TO FORM:
. chenk, City Attorney
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CITY OF PARIS, PARIS, TEXAS'
GUIDELINES AND CRITERIA FOR
TAX ABATEMENT AGREEMENTS
DEFINITIONS
a)
"Abatement" means 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)
"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. .
d)
"Enterprise Zone" means that area of the City d~signated as an enterprise zone under
the Texas Enterprise Zone Act (Texas Government Code Chapter 2303); where a
Reinvestment Zone as defined herein is also located in an Enterp!Ïse Zone, the
reference to Reinvestment Zone shall be interchangeable with Enterprise Zone.
e)
"Manufacturing Facility" means buildings and structures, including fixed machinery
and equipment, the primary 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.
f)
"Modernization" means the replacement and upgrading of existing facilities \vhich
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.
g)
"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, permanent, full-time jobs
and bring new wealth into the community.
h)
"Regional Distribution Facility" means buildings and structures, including fixed
. machinery and equipment, used or to be used primarily to receive, store, service, or
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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.
i)
"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 hotel/motel accommodations.
j)
"Reinvestment Zone" is an area \vhere 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.
k)
"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.
DESIGNATION OF A REINVESTMENT ZONE.
The City 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 (Chapter 312, Texas Tax Code).
TAX ABATEMENT AUTHORIZED.
The City, through its City 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 tangible 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 make 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 tangible personal property located on the real property in each year
covered by the Agreement other than tangible 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 tangible personal property.
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A property owner and/or lessee shall be eligible for tax Abatement only upon the following
terms and conditions: '
a)
Authorized Facilities. A facility may be eligible for Abatement if it is a
Manufacturing Facility, Research Facility, Regional Distribution Facility, Regional
Tourist Entertainment Facility, or Other Basic Industry.
b)
. Creation of New Value. Abatement may only be granted for the additional value of
eligible real and tangible personal property improvements, subject to such limitations
as the City may require.
c)
Ne\v and Existing Facilities. Abatement may be granted for new facilities and
improvements to existing facilities for purposes of modernization or expansion.
d)
Eligible Property. Abatement may be extended to the valùe 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 facility; provided, however, that inventory or supplies shall not
be eligible for Abatement.
e) ,
Leased Facilities. If a leased 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 \vith the lessee to guarantee compliance with the terms of the
Agreement.
f)
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.
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. 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 facility replacement, the value eligible for Abatement shall be the value of
the new unites), less the value of the replaced unites). 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 by the proposed project;
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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 community;
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 the City's services or its tax base;
7)
whether the project meets all relevant zoning requirements;
8)
\vhether the project is consistent with the comprehensive plan of the City of
Paris or County of Lamar; and
9)
the types and cost of public improvements and services (water and sewer
main extensions, streets and alleys, etc.) required of the City and the types
and values of public improvements to be furnished by the applicant.
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;
AND
2)
must 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
i\greement; i\ND
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; AND
4)
must be necessary because capacity cannot be provided efficiently utilizing
existing improved property, even when reasonable allowance is made for
necessary improvements or relevant governmental actions.
Taxability. During the term of the i\greement, taxes shall be payable as follo\vs:
the Base Year Value of eligible property as determined each year shall be
1)
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. fully taxable; and
2)
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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 City shall annually determine an assessment of the real
and personal property comprising the Reinvestment Zone. Each year, 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.
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.
b)
Form. The application shall consist of a completed application form accompanied
by (i) general description of the improvements to be undertaken together \vith the
projected new value to the property and the type of business operation proposed; (ii)
descriptive list of the improvements for which an Abatement is requested; (iii) list
of the kind, number, and location of all proposed improvements of the property; (iv)
the number and type of jobs created, including information pertaining to anticipated
job transfers; (v) metes and bounds description and plat of the proposed
Reinvestment Zone that shows all roadways within 200 feet of the site and all
existing zoning and land uses \vithin 200 feet of the site; (vi) time schedule for
undertaking and completing the proposed improvements; (vii) the type and value of
any economic development incentives requested; and, (viii) any other information
about the proposed project as may be required by the City or as deemed desirable.
c)
Review. Once the Application has been received, the information submitted will be
reviewed by the City Manager for completeness and accuracy. The City Manager
\vill then distribute the Application to the appropriate depart~ent 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 City 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. Prior to final approval, all legal documents to effect
such Reinvestment Zone(s) and tax Abatement Agreement(s) shall be drafted and
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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;
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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;
each term agreed to by the owner of the property;
a requirement that the owner of the property shall certify annually to the City Council
that the o\vner is in compliance with each applicable term of the agreement;
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
that the City Council may cancel or modify the agreement if the property owner fails
to comply \vith the agreement.
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 period of time specified in such notice ("Cure Period"), then
the Agreement may be modified or terminated without further notice.
In the event that the company or individual (i) allows its ad valorem taxes owed the City to
become delinquent and fails to timely and properly follo\v the legal procedures for their
protest and/or contest, or (ii) 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.
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 unless otherwise
mandated by state law until the Agreement is executed. Such information in the custody of
the City after the Agreement is executed is not confidential under these Guidelines.
VIII. PROPOSED TAX ABATEMENT AGREEMENTS TO BE DECIDED ON AN
INDIVIDUAL BASIS. The adoption of these Guidelines by the City Council does not (i)
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limit the discretion of the City Council to decide whether to enter into a specific tax
Abatement agreement, or (ii) limit the discretion of the City to delegate to its employees the
authority to determine whether or not the City Council should consider a particular
application or request for tax Abatement, or (iii) create any property, contract, or other legal
right in any person or entity to have the City Council consider or grant a specific application
or request for tax Abatement.
IX.
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 facility to determine if the tenus and conditions of the Agreement
are being met. All inspections \vill be made only after the giving of at least twenty-four (24)
hours' prior notice and will only be conducted in such manner as to not unreasonably
interfere with the construction and/or operation of the facility. All inspections \vill be made
with one or more representatives of the company or individual and in accordance with its
safety standards.
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Upon completion of construction, the City shall annually evaluate each facility receiving
Abatement to ensure compliance with the Agreement and report possible violations of the
Agreement to the City Council.
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 the original
Agreement or to delete provisions that \vere contained in the original Agreement. The
modification must be made by the same procedure by which the original Agreement \vas
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. .
ASSIGNMENT. An Agreement may be assigned to a new o\vner or lessee of the facility
only with the prior \vritten 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 are
indebted to the City for ad valorem taxes or other obligations, or if any event of default under
the Agreement remains uncured.
AMENDMENTS. These Guidelines are effective for two (2) a 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.
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