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06-A K-C Nom Enterprise Project DRAFT F:ATTORNEY\ORDWORK\CURRENT\K-C TX CIP Nominating Ord September 28, 2005 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS AUTHORIZING THE CITY OF PARIS TO PARTICIPATE IN THE TEXAS ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE; PROVIDING TAX INCENTIVES; NOMINATING KIMBERLY- CLARK CORPORATION TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT AND TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS A QUALIFIED BUSINESS AND DOUBLE JUMBO 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, Kimberly-Clark was previously designated an Enterprise Project on December 22, 1999, with an expiration date of December 22, 2004, by the Texas Department of Economic Development and successfully completed all elements of its designation; and, WHEREAS, Kimberly-Clark continues to be a major employer for the City of Paris; 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, with proper notice to the public, a public hearing to consider this ordinance was held on Monday, October 10, 2005, during a regular meeting of the City Council, Love Civic Center, 2025 S. Collegiate Drive, in Paris, during which all interested persons were allowed to appear and be heard; and, WHEREAS, the City Council has determined that passage of this Ordinance would best serve the public health, necessity, and convenience and the general welfare of the City and its citizens; NOW, THEREFORE, T I BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That 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 briefly 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. That the City finds that KIMBERLY-CLARK CORPORATION. ("Kimberly- Clark"), or its successor in interest, meets the criteria for designation as an enterprise project under the Act on the following grounds: (a) (b) (c) (d) (e) Kimberly-Clark 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 thirty-five (35%) percent of its new employees at the qualified business site will be residents of an enterprise zone in this state or economically disadvantaged individuals; The Kimberly-Clark 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) Kimberly-Clark maintains separate books and records for the Paris manufacturing operations; 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; The designation of Kimberly-Clark 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 Kimberly-Clark qualifies for job retention benefits under Section 2303.406(a)(4)(D) because Kimberly-Clark expects a ten percent (10%) increase in production capacity. Section 4. That Kimberly-Clark qualifies as a Double Jumbo Enterprise Project as defined in Section 2303.407 (b) (6) and Section 2303.407 (d) of the Act because Kimberly-Clark will be making a capital investment in a project in excess of $150,000,000. The City finds that it is in the best interest of the City to nominate Kimberly-Clark as a Double Jumbo Enterprise Project under the Act. T I Section 5. That the City nominates Kimberly-Clark as a Double Jumbo Enterprise Project under the Act and designates the City Community Development Director or her designee as liaison to oversee enterprise projects nominated by the City and to perform the other duties described in Section 2303.204 of the Act. The City authorizes the City Community Development Director or her designee to file an application requesting designation of Kimberly-Clark as a Double Jumbo Enterprise Project with the Bank, and to execute all documents and agreements necessary to process the application. Further, the City directs the City Community Development Director or her designee to submit to the Bank the information required by section 2303.4052 of the Act. Section 6. That the City finds that Kimberly-Clark meets the criteria for tax relief and other incentives adopted by the City and that Kimberly-Clark 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 Kimberly- Clark, the nominated project, are identified and summarized briefly in the attached Exhibit B. Section 7. That upon approval of the Bank, the Double Jumbo Enterprise Project will be named KIMBERLY-CLARK CORPORATION PROJECT ("Project"). Section 8. That 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. Kimberly-Clark and the City request that the Bank approve December 1, 2005, as the beginning date and December 1, 2010, as the ending date of the Project. Section 9. That the enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312. Section 10. That 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 11. That this ordinance shall be effective following passage and publication as required by law. PASSED, APPROVED, AND ADOPTED this 10th day of October, 2005. Curtis Fendley, Mayor T I ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney T I " Exhibit A Incentives offered by the City of Paris N~1m_C.__o__r h.1Cc.l1tive D\;;,'scriptio, 1.1 of I_ll_c.entin.:.' ... f\ vailability T 1 2 3 4 unicipal sales and se tax re fund 5 6 7 8 9 10 11 I e City may abate taxes on th~ 'ncrease in value ofreat propeny improvements and tangible personal ropeny that locate in a designated enterprise ZOne up to 1000/0 of the stimated total tax increase to be levied n the proposed propeny improvements for a tenn not to exceed ten 10 ears. Cit -wide inancing through the creation of tax .ncre:ment reinvesnnent zones. Cit -wide The City may offer low-interest Joans to develo or revitalize the zone. Cit -wide he City may refund the amount of tax aid under IDe Municipal Sales and Use ax (Texas Tax Code~ Chapter 321) by e business and remitted 10 the Comptroller of Public Account up to the aximum extent auÙ1orized by Sections 303.505 and 2303.506 of the Act~ and for a period determined by the CitY1 but ruch shall not exceed five (5) ears, Cit '-wide Ta.x~Exem t Industrial Bonds, e City may waive Or refund any and aU a licab1e fees due or aid, The City may provide infrastrUctUre im rovements for industries. Allows changes in the zoning and vanances. The City may a11ow permit applications ant! supponing materials to be tendered 0 one department for distribution to the a ro nate ci tY de anmems, Cit ~widc Cit -wide Cir -wide Ci ~wide Ci -wide ail convenience for cit residents. Ci -wide Cit ~wide -- Exhibit A (Continued) Incentives offered by the City of Paris Nmnc of Incclltive Descri. lion of Incentive A vailabilitv ~o. c -,.. - . . .. T mmumty nme prevenuon programs Community crime such as D.A.R.E., Crime Watch, Think revention ro aIDS Ch.ild Safe. and Think Senior Safet . The City can provide resources for a Capital improvementS capital ijnprovement plan related to in water and sewer ater and sewer service. e City is responsible for maintaining and repairing all public streets and alleys utside cit limits, Cit -wide aintain healthy lifestyle for city esidents. Parks are located in city limits and are the responsibility of city ovemment. Encourage home ownership for city esidents. S~~egic sus~ance and groWth for the oses Cl . Lamar County Chamber of Commerce and Paris Economic eve1o menr Co OI'arion. Cit -wide Offered in conjuncùon with Paris Junior Cone e. Cit -wide ffered in conjunction with Paris Junior Colle e. Cit -wide 12 13 -. 14 15 16 17 18 19 Job trainin 20 21 22 ocationa1 education 23 Cash ants I Cit -wide City-wide Ci -wide it -wide Cit -wide -. Exhibit B Incentives that may be considered and offered by the City of Paris to Nominated Texas Enterprise Zone Projects .. - Nanle of Incentive . Description of I.ncel1tive. Availability . 1 aive fees associated with tax batement a lication. nterpnse Zone ojects I Enterprise one areas on a Case- -Case Basis nterprise Zone I Where ApplicableJ CitY-wide ". a cabe-b .cast basis. 2 Exhibit A T I Exhibit C Paris Areas meeting the 2003 Requirements for Texas Enterprise Zone (Sections 2303.101 and 2303.109) CL'lhLh JI-~Ict 1~lnck (inHI l Ik"i~luti\)11 5 1 ensus Block Grou 5 3 ensus Block Grou 5 4 Census Block Grou 6 1 ensus Block Grou 6 2 ensus Block Grou 6 3 ensus Block Grou 6 4 ensus Block Grou 7 1 Census Block Groll 8 1 ensus Block Grou 8 2 ensus Block Grou 8 3 ensus Block Grou 10 1 ensus Block Grou 1 I