11-APPROVE ABATEMENT REQUEST OF CAMPBELL SOUPCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
08/22/2012
Council Date:
PEDC
Steve Gilbert, Executive Director
11.
08/27/2012
RECOMMENDED MOTION:
Approve abatement request of Campbell Soup.
PoLicY IssuE(s):
This abatement request complies with the abateinent policies, guidelines and criteria approved by the
Paris City Council on August 13, 2012 in Resolution 2012-072. This tax abatement helps maintain and
enhance the commercial and industrial economic and employment base of the Paris area far the long-
term interest and benefit of the City of Paris and its citizens.
BACKGROUND:
Campbell Soup Supply Company LLC, (Campbell) headquartered in Camden, Ncw Jersey, has determined it is in thcir best interest to
invest $45,400,000 in real estate and equipment at their Paris, Texas plant to install a new product line described as follows:
• Rcady-to-eat soup line, including preparation, blending, filling/chilling, packaging and finished goods warehouse.
• Refrigeration equipment and infrastructure to support the required project chiller, conditioned manufacturing, prod uct/i ngredi ent
storage and refrigerated dock spaces.
• Ingredient preparation equipment, including hand scaling cquipment, extractor for bulk frozen ingredients, 4 frozen ingredient and 2
dry ingredient batching stations and fresh cream/milk handling system.
• Prcmix systems, including emulsion and thickener systems.
• Blending ccll, including 4 blending kettles complete with ingredient delivery and blending control systems.
• Filling arca, including cup tiller, bulk pouch filler, and single scrve pouch tiller.
• Product chiller with infeed mechanism for pouches and cups.
• Packaging arca, induding the following for pouchcs: carton erector, manual casepacking station, checkweighing station and case
sealer; and the following for cups: 2 product accumulators, overcapper, labeler, sleever, casepacker; and paletizer for pouches and cup
products; All-interconecting conveyance.
• Refrigeratcd finished goods warehouse with gravity flow i acking, including dock with dock doors and exterior paving.
Campbell estiinates this new product line and associated technologies will create 68 new jobs over thc lifie of the agreement, and Campbell
'
this agreement.
agrees to retain sufticient einployment levels to efficiently operate and suppon its Paris plant during the term of
The total economic benefit to Campbell of the proposed 7-Year, 100% tax abatement is $2,884,710.
BOARD/COMMISSION RECOMMENDATION:
Approve abatement request as proposed.
EXHIBITS:
Resolution
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$
❑ Department Report E Resolution
Budgeted Amt.
$
❑ Presentation ❑Ordinance
y'I'D Actual
$
❑ Public Hearing ❑ Other
Acct. Name
Acct. Number
FISCAL NOTES:
Citv of Paris Revised 2/04/08
~ - 49
Draft
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH
CAMPBELL SOUP SUPPLY COMPANY LLC; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING 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, Texas and Campbell Soup Corporation,
providing for a commercial and industrial tax abatement for certain improvements, a copy
of which is attached hereto as Exhibit "A", and incorporated herein by reference hereinafter
called "Agreement"; and,
WHEREAS, upon 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 ineet the Guidelines and Criteria for Tax Abatement and should be
approved, and that the Mayor should be authorized to execute it on behalf of the City of
Paris, Texas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in
all things approved.
Section 2. That the terms of the Tax Abatement Agreement and the property the
subject thereof ineet the City's Guidelines and Criteria for Tax Abatement adopted by the
City of Paris by Resolution No. 2012-072 passed on August 13, 2012.
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as Exhibit "A", 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 4. 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 attached hereto as Exhibit
„A„
Section 5. That the planned use of the property the subject of the tax abatement
will not constitute a hazard to public safety, health, or morals.
- 50
Section 6. That this approval and execution of the agreement on behalf of the
City is not conditioned upon approval and execution of any other tax abatement agreement
by any other taxing entity.
DULY PASSED AND APPROVED this 22nd day of August, 2012.
A.J. Hashmi, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
51
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 CAMPBELL SOUP
SUPPLY COMPANY LLC, acting by and through its authorized officer whose signature
appears below (hereinafter referred to as "OWNER").
WITNESSETH:
WHEREAS, the City Council of the City of Paris did heretofore, on the 13t' day of
August, 2012, in Resolution No. 2012-07 , 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, under the Texas Enterprise Zone Act (Government Code Chapter 2303), the
designation of an area as an Enterprise Zone also constitutes designation of the area as a
reinvestment zone; and pursuant to the 2010 United States Government Census, the PROPERTY
of the OWNER within City of Paris, Texas, is included within an ENTERPRISE ZONE, as is
shown in the print-out of such ENTERPRISE ZONE from the Office of the Governor of the State
of Texas on its website, as shown in Exhibit A, attached hereto and made a part hereof for all
purposes; and
WHEREAS, the contemplated use of the IMPROVEMENTS, as hereinafter defined, in
the amount as set forth in this AGREEMENT upon and within the PROPERTY (herein called the
PROJECT), and the other terms hereof are consistent with encouraging development of said
Enterprise 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 Enterprise
Zone adopted by the CITY and all applicable laws; and
WHEREAS, the City Council of the City of Paris did heretofore, on the 1P day of
August, 2012 in Resolution No. 2012-072, pass and adopt 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;
NOW, THEREFORE,
The Parties hereto do mutually contract and agree as follows:
1.
Term
EXHIBIT ._.o. 52
1.1 The effective date of this AGREEMENT is the 27t' day of August, 2012, with tax
abatement beginning with the tax year commencing January 1, 2014, and expiring on December
31, 2020.
II.
Area to be Improved
2.1 The PROJECT consists of new building modifications to the real property of the
OWNER, and the addition and installation of equipment and personal property described in
Article III, below, all to be performed by OWNER within an existing building of the OWNER at
the OWNER'S plant in Paris, Lamar County, Texas. Collectively, all such improvements which
are the subject hereof shall be called the "IMPROVEMENTS". The IMPROVEMENTS shall be
located upon and within the OWNER'S current facilities consisting of the OWNER'S land also
described in Exhibit A, attached hereto and made a part hereof for all purposes (as are all
Exhibits which are mentioned herein), and within the building at the location shown within the
drawings attached hereto as Exhibit B. The land and building are herein called the
"PROPERTY".
III.
Improvements
3.1 The installation of the IMPROVEMENTS will require engineering and design
work, procurement of equipment, infrastructure and utilities modifications and electrical and
mechanical installation at the PROPERTY. The IMPROVEMENTS are being made to enable
the OWNER to manufacture fresh refrigerated soups in pouch and cup formats. The
IMPROVEMENTS are described as follows:
A. To the real property of OWNER, building modifications to segregate "Ready To
Eat" ("RTE") production from remaining manufacturing spaces to provide a
sanitary environment for RTE products, and to support specific peices of
manufacturing equipment. This includes floor, wall, and ceiling finishes, as well
as some structural changes to the building. Modifications will occur in 5 major
areas of the RTE space: preparation, blending, filling/chilling, packaging, and
finished goods warehouse.
B. Refrigeration equipment and infrastructure to support the required product chiller,
conditioned manufacturing spaces, product/ingredient storage spaces, and
refrigerated dock.
C. Ingredient preparation equipment, including Hand Scaling equipment; an extructor
for bulk frozen ingredients; 4 frozen ingredient and 2 dry ingredient batching
stations; and fresh cream/milk handling system.
D. Premix systems, including emulsion and thickener systems will be relocated into
the new space.
53
E. A blending cell will be created, including 4 blending kettles complete with
ingredient delivery and blending control systems.
F. A filling area including the following equipment: One cup filler; one bulk pouch
filler; and one single serve pouch filler.
G. A product chiller complete with infeed mechanism for pouches and cups.
H. A packaging area, including the following equipment: Carton erector for pouches;
manual casepacking station for pouches; checkweighing for pouch cases; case
sealer for pouch cases; 2 product accumulators for cups; overcapper for cups;
labeler for cups; sleever for cups; casepacker for cups; and palletizer for pouch and
cup products.
1. All-interconnecting conveyance.
A refrigerated finished goods warehouse complete with gravity flow racking.
K. A refrigerated dock complete with dock doors and exterior paving.
All such IMPROVEMENTS will be particularly described in the CITY'S Certificate of
Completion prepared after the completion and installation of the above described building
modifications and improvements, personal property, machinery and equipment. The description
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 C. The IMPROVEMENTS will be at a cost equal to or in excess of
$45,400,000.00 for the cost and installation of the building modifications, machinery and
equipment, and shall be substantially completed during the month of July, 2013; 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
installation 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 reflected in the Certificate of Completion issued by the City of Paris,
Texas, referred to above.
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 for this AGREEMENT, OWNER further covenants and agrees that all
construction of the IMPROVEMENTS will be in accordance with all applicable state and local
laws, codes and regulations or will procure a valid waiver thereof. In further consideration,
54
OWNER shall thereafter, from the date a Certificate of Completion is issued, or that the
IMPROVEMENTS are completed as agreed, until the expiration of this AGREEMENT,
continuously operate and maintain the PROPERTY, including the specific units of new
machinery and equipment as identified herein, as a food production plant.
V.
Consideration
(Jobs)
5.1 The City has provided in its Guidelines and Criteria for Tax Abatements, for tax
abatement for the benefit of its existing employers, such as the OWNER herein, to i'mprove their
respective businesses and industries, as well as their profitability, even though no new jobs are
created as a result thereof. The Guidelines and Criteria provide substantially as follows in this
regard: If an existing Employer owns or leases an Authorized Facility (such as the PROPERTY of
the OWNER herein), and it has plans to improve such property by constructing new
improvements on its real property or to add new personal property (which includes equipment,
such as that to be constructed by OWNER herein within the PROPERTY), such existing
employer may be eligible for tax abatement with respect to such improvements to its real property
or its new personal property even though no new jobs or newly created minimum annual payroll
are created. In such cases, however, the Owner is encouraged to retain as many jobs and as much
existing annual payroll as is economically feasible for the existing employer to do and remain
competitive in its industry.
5.2 The Owner agrees to retain sufficient employment levels to efficiently operate
and support its plant operations during the term of this Tax Abatement Agreement.
VI.
Default
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 (a)(4) 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
55
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.
Personal Property 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 the ad valorem property taxes
assessed upon the IMPROVEMENTS and otherwise owed to the CITY shall be abated as is
provided for in the Property Tax Abatement Schedule attached hereto as Exhibit D. Said
abatement shall be an amount equal to one hundred percent (100%) of the taxes assessed upon
the completed value of the IMPROVEMENTS on January 1, 2014, with this tax abatement
continuing at such rate of one hundred percent (100%) for each year during the seven (7) year
term of this AGREEMENT, through and including December 31, 2020. This tax abatement
shall be in accordance with 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 property of the OWNER that is not subject to tax abatement AND
WHICH DOES NOT INCLUDE THE IMPROVEMENTS (as defined herein) shall be deemed
to be the values as shown on the tax rolls of the Lamar County Appraisal District as of January
1, 2013, which values are not known as of the date of this AGREEMENT, but the values as of
January 1, 2012, are stipulated to be $15,051,220.00 for Land and Buildings, and $115,912,802
for tangible Personal Property. This current abatement, which is the subject of this
AGREEMENT, shall extend for a period of seven (7) years beginning January 1, 2014.
7.2 The abatement granted herein shall be subject to and governed by the POLICY
STATEMENT CRITERIA AND GUIDELINES for TAX ABATEMENT, a copy of which is
attached hereto as Exhibit E. 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.
VIII.
No Conflict of Interest
8.1 The OWNER represents and warrants that neither the PROPERTY nor the
IMPROVEMENTS include any real or personal 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.
56
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 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 December 31, 2014. The Asset Report will provide 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 OWNER'S letterhead
- ~ 57
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 the IMPROVEMENTS;
(c) Detailed description of any miscellaneous items of office equipment and the
actual cost of such added office equipment;
(d) Copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by CITY's
certification team;
(e) Detailed list of and actual cost of added machinery and equipment;
(f) Actual cost of capital IMPROVEMENTS; and,
(g) 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 on the forms provided by the City.
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 its Texas Workforce Commission Employer's
Quarterly Report within thirty (30) days of its filing of the same 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 27`h day of August, 2012, authorizing the Mayor to execute
the AGREEMENT on behalf of the CITY.
12.2 This AGREEMENT was entered into by CAMPBELL SOUP SUPPLY
COMPANY LLC (PARIS PLANT) 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.
58
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 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:
CAMPBELL SOUP SUPPLY COMPANY LLC
Attn: Richard J. Landers, V. P.-Taxes
590 NW Loop 286
Paris, TX 75461-9016
With a copv to•
Michael Caruso, Esq.
Campbell Place
Camden, NJ 08101
CITY:
City of Paris, Texas
Attn: City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a copv to•
City Clerk, City of Paris, Texas (address same as above)
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
saidd 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 writing 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
- 59
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 27"' day of August, 2012.
By:
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
By:
ATTEST:
Secretary
CITY OF PARIS, PARIS, TEXAS
A. J. Hashmi, M. D., Mayor
CAMPBELL SOUP SUPPLY COMPANY LLC
Richard J. Landers, Vice President - Tax
& Real Estate
- 60
LIST OF EXHIBITS TO THIS AGREEMENT:
A= 2010 Designation of Enterprise Zone which includes OWNER'S PROPERTY, and
Land of OWNER in Paris, Texas
B= Drawings showing the building and the location of the IMPROVEMENTS within the
building.
C= CITY'S Certificate of Completion
D= Property Tax Abatement Schedule
E= CITY'S Guidelines and Criteria for Tax Abatements
61
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CERTIFICATE OF COMPLETION
STATE OF TEXAS
COUNTY OF LAMAR
CITY OF PARIS
The City of Paris, Texas, has executed and delivered a Tax Abatement Agreement dated
August 27, 2012, with CAMPBELL SOUP SUPPLY COMPANY LLC for certain equipment
(the "Improvements") to be installed at the corporation's plant in Paris, Texas, located within the
PROPERTY described in Exhibit A, attached hereto and made a part hereof for all purposes,
which PROPERTY is located within an ENTERPRISE ZONE established by the United States
Census in 2010.
CAMPBELL SOUP SUPPLY COMPANY LLC has complied with all of the terms of the
Tax Abatement Agreement, and the City of Paris herein verifies that the Improvements agreed to
be built, installed and used have in fact been completed as provided for in the Tax Abatement
Agreement.
NOW THEREFORE, the City of Paris authorizes that the Property described in Exhibit A
attached hereto shall receive a tax abatement of 100% of the taxes assessed upon the increased
value of the Improvements so installed over the value in the year, 2013, for a duration of seven
(7) years, commencing as of January 1, 2014, and ending December 31, 2020.
APPROVED this day of , 20_
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
City Attorney
69
EXHIBIT D TO TAX ABATEMENT AGREEMENT
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Z
EXHIBIT E TO TAX ABATEMENT AGREEMENT
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~ - 72
CITY OF PARIS, TEXAS
POLICY STATEMENT
CRITERIA AND GUIDELINES
FOR TAX ABATEMENT
1. General Purpose and Objectives.
The City of Paris, Texas (herein called the "City") is committed to enhancing the
competitiveness and the expansion potential of the City's manufacturing industry; to attracting and
encouraging new manufacturing industry and investment; to improving the City and its
infrastructure which amacts and supports development; and, to expanding the tax base,
employment opportunities, and the overall quality of life for its citizenry. Therefore, the City wil]
give consideration, on a case-by-case basis, to providing tax abatement according to state law to
the owners of real property for projects which stimulate economic growth and diversification in
the City.
Tax abatement benefits may be made available to industrial, manufacturing, distribution,
and service facilities currently in the City or locating in the City if located in a designated
Enterprise Zone or Reinvestment Zone. New facilities and structures as well as the expansion
and modernization of existing facilities and structures, will be considered. Evaluation of a tax
abatement request will be based on the information provided in the tax abatement application.
However, the City is under no obligation to provide tax abatement to any applicant.
II. Definitions
a) "Abatement" or "abatement" means "tax abatement", which is 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) "Authorized Facility". A facility may be eligible for abatement if it is a
Manufacturing Facility, a Research Facility, a Regional Distribution Facility, a Regional Tourist
Entertainment Facility or Other Basic Industry (all of which terms are defined below); or if the
facility is a Historic Property defined in Section IV (b) below within a City of Paris Historical
District.
d) "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. The
Base Year Value may be adjusted either up or down from year to year as per renditions by the
Lamar County Appraisal District.
73
e) "Employer" means the owner or lessee of Property who provides Jobs within the
Reinvestment Zone or within the Enterprise Zone, applying for tax abatement.
fl"Enterprise Zone" means an area of land designated as such under Chapter 2303 of
the Texas Government Code.
g) "Jobs" or "a Job" as used herein means a position of full-time employment for an
individual to work 32 hours or more per week for an Employer, in which position the individual
is provided the benefits normally offered by the Employer, such as health insurance, vacation
time and some form of retirement benefit. A Job is not a position filled for the Employer as a
worker or employee of an employment agency or service. "Jobs" as used herein includes "Full-
time Equivalent Jobs", as defined below.
h) Full-time Equivalent Jobs" means a number of part-time jobs where the hours worked
in each such job is less than 32 hours per week, made available by one Employer and added
together. For example, sixteen (16) part-time jobs made available by one Employer where all
such part-time jobs added together require a total of 352 hours of work per week (but no such
part-time job requires 32 hours of work or more per week), will equal eleven (11) Full-time
Equivalent Jobs (352 hours divided by 32 hours per week equal 11). Full-time Equivalent Jobs
do not require the employee to receive benefits from the Employer.
i) "Manufacturing Facility" means buildings and structures, including fixed machinery
and equipment, the 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.
j) "Modernization" means the replacement and upgrading of existing facilities which
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.
k) "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 Jobs and bring new wealth into the City.
I) "Personal Property means machinery, equipment, tools, shelving or materials eligible
under applicable law for tax abatement, which can be removed from an authorized facility
described in Section IV (a) below.
74
m) "Property" means Real Property or Personal Property defined herein, as is applicable
according to the context where used herein, that is eligible for tax abatement.
n) "Real Property" means the land within an Enterprise Zone or a Reinvestment Zone,
together with all improvements and fixtures constructed or otherwise situated thereon.
o) Regional Distribution Facility" means buildings and structures, including fixed
machinery and equipment, used or to be used primarily to receive, store, service, or 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.
p) "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.
q) "Reinvestment Zone" is an area where 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.
r) "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.
s) "Tax Abatement Committee" means the committee of persons designated from time
to time by the Paris Economic Development Corporation to study, review and recommend tax
abatement to the applicable taxing entities in the community. The Tax Abatement Committee
will be composed of one person from each of the City (the City Manager or designee), the
County of Lamar (the County Judge or designee), Paris Junior College (the President or
designee), the Chief Appraiser of the Lamar County Appraisal District, and the Executive
Director of the Paris Economic Development Corporation.
w. Designation of a Reinvestment Zone.
The City or County 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 (Texas Tax Code Sec. 312.401 (b)).
For any area within the jurisdiction of the City to be eligible for tax abatement it must
meet the criteria for designation as a tax abatement Reinvestment Zone as set forth in the
Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312.
75
iv. Tax Abatement Authorized.
The City, through its 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 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 makes
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 Personal
Property located on the Real Property in each year covered by the agreement other than 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 Personal Property.
Tax abatement may only be granted for additional value of eligible Property
improvements made subsequent to and specified in an abatement agreement between the City and
the Property owner or lessee subject to such limitation as the City may require. The additional
value must exceed any reduction in the fair market value of other property of the owner already
on the tax role with the jurisdiction of the City. Change in appraised value does not qualify for
abatement except in an instance where a previously vacant Authorized Facility is utilized. Value
added to the tax rolls must come from actual capital expenditures.
The negotiation of tax abatement contracts will be conducted by the Paris Economic
Development Corporation, in conjunction with the City Manager or designee to the Tax
Abatement Committee. In determining where and how tax abatement will be utilized, the Tax
Abatement Committee will examine the potential return on the public's investment. Return on
public investment will be measured in terms of (i) Jobs created, (ii) Jobs retained in cases of
existing Employers within the City, and (iii) broadening of the tax base, and expansion of the
economic base.
A property owner and/or lessee shall be eligible for tax abatement only upon the
following terms and conditions:
a) If the Property involved is an Authorized Facility.
b) If the Property involved is a Historic Property. In the City Historic Districts there are
certain commercial and residential tax exemptions allowed. Exterior improvements in the historic
districts are allowed at 100% for seven (7) years with a minimum investment of $5,000 for
residential property and $10,000 for commercial property. New residential construction requires
a minimum investment of $100,000 to be considered for a three (3) year 100% exemption. New
commercial construction reguires a minimum investment of $200,000, for a 100% tax exemption
for three (3) years.
76
c) If there will be the creation of new value. Abatements may only be granted for the
additional value of eligible Real and Personal Property improvements, subject to such
limitations as the City may require. Real Property tax abatement may be granted only to the
extent that its value for each year of the agreement exceeds its value for the year in which the
agreement is executed.
d) If there will be new Authorized Facilities created, or if existing Authorized
Facilities will be improved for purposes of modernization or expansion.
e) Eligible Property. Abatement may be extended to the value 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
Authorized Facility; provided, however, that inventory or supplies shall not be eligible for
abatement. Eligible property for which abatement may be granted includes nonresidential real
property and/or tangible personal property not located on the real property at any time before the
abatement agreement becomes effective.
fl Leased Authorized Facilities. If a leased Authorized 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 with the lessee to guarantee compliance with the terms of the
agreement.
g) 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 and in
accordance with these Criteria and Guidelines. 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
within the Authorized Facility. 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 the replacement of improvements within an Authorized Facility,
the value eligible for abatement shall be the value of the new unit(s), less the value of the replaced
unit(s). 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 or retained by the Employer involved;
3) The possible effect the proposed project will have on attracting other taxable
improvements into the City;
77
4) The nature of the proposed project and its overall effect on the City;
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 City services or its tax base;
7) Whether the project meets all relevant zoning requirements;
8) Whether the project is consistent with the comprehensive plan of the City or
County of Lamar; and
9) The types and cost of public improvements and services (water and sewer main
extensions, streets and roads, etc.) required of the City and the types and values of
public improvements to be furnished by the applicant.
h) Economic Qualification. In order to be eligible to receive tax abatement, the
planned improvements:
1) Must be reasonably expected to increase the appraised value ofthe Property;
2) Must be expected to prevent the loss of employment, or the retention or
creation of Jobs in the City during the term of the agreement;
3) Should 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 ar Jobs) or
unusual circumstances whereby without such a move employment is likely to
be reduced;
4) Must be necessary because capacity cannot be provided efficiently utilizing
existing improved Property when reasonable allowance is made necessary
improvements or relevant governmental actions.
i) Taxability. During the term of the agreement, taxes shal] be payable as follows:
1) The Base Year of eligible properiy as determined each year by the Lamar
County Appraisal District shall be fully taxable; and
2) The additional value of eligible property above the Base Year Value shall be
taxable in the manner described in the agreement.
78
The Chief Appraiser of the Lamar County Appraisal District shal] annually determine an
assessment of the Real and Personal Property comprising the Reinvestment Zone. Each year, the
Employer, the company or individua] 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 and the Paris Economic Development
Corporation.
The Employer, owner or lessee of eligible Property requesting tax abatement within a
Reinvestment Zone shall, prior to the commencement of eligible property improvements, agree
to expend a designated sum of money and to create or retain a certain number of Jobs, or annual
payroll as further defined below.
V. Tax Abatement for Real Property; Creation of Jobs:
Tax abatement may be made available to Employers creating Jobs with respect to an
Authorized Facility located anywhere within the City or its extra territorial jurisdiction based
on the following:
a) To be eligible for any tax abatement, there must be a minimum capital investment in the
Authorized Facility of $250,000 and at least ten (10) new Jobs added to the Employer's labor
force. .
b) When an abatement percentage has been agreed upon it shall be granted for years
one (1) through three (3); thereafter, there will be a 20% reduction in the original amount abated
beginning with year four (4) and a similar reduction of 20% in each of the next three years until
100% of the Real Property valuation is added to the tax rolls.
c) Criteria for qualification for tax abatement are as follows:
Min. Annual
Newly Created
Possible Abatement
Ca ital Investment
Pa roll Created
Jobs
lst 3 Years Onl
0 -3 0
1 5 0
1-5
20%
$350 001-$500 000
$325 000
26-50
30%
$500 001-$750 000
$635 000
51-75
40%
$750 001-$1 000 000
$945 000
76-100
50%
$1 000 001-$1 250 000
$1,260,000
101-125
60%
$1 250 001-$1 500 000
$1 570 000
126-150
70%
$1 500 001-$1 750 000
$1 880 000
151-175
80%
$1 750 001-$2 000 000
$2 190 000
176-200
90%
2 000 00 3 000 000
2 0,000
201-225
100%
79
d) Any project with a capital investment of more than ten million dollars l 0,000,000),
accompanied by a newly created minimum annual payroll of two and one-half million dollars
($2,500,000), or creating more than two hundred twenty-five (225) Jobs will be individually
negotiated. No abatement will be granted for more than specified in state law.
e) If a newly created business is located or will locate within an Enterprise Zone, an
additional 10 to 20% abatement may be available as individually negotiated, with total
abatement not to exceed 100%.
VI. Tax Abatement for Personal Property; Creation of Jobs:
The City recognizes a significant difference in the valuation of real property and
personal property. Because of depreciation schedules, often the abatement of personal property is
basically a tax exemption. For this reason, the abatement schedule for personal property versus real
property is significantly different. If personal property should become obsolete and be replaced
while under an abatement agreement, the replacement personal property is not eligible for
abatement.
a) To be eligible for any tax abatement on Personal Property, there must be a minimum
capital investment of $250,000 in Personal Property and at least ten (10) new Jobs added to the
Employer's labor force.
b) When an abatement percentage has been agreed upon it shall be granted for years
one (1) through three (3); thereafter, there will be a 20% reduction in the original amount abated
beginning with year four (4) and a similar reduction of 20% in each of the next three years until
100% of the Real Property valuation is added to the tax rolls.
% ~r;rPr;a fhr n,ialification for tax abatement are as follows:
d) Any project with a capital investment in personal property of more than three million
dollars ($3,000,000), accompanied by a newly created minimum annual payroll of two and one-
half million dollars ($2,500,000), or creating more than two hundred twenty-five (225) new Jobs
wil] be individually negotiated. No abatement will be granted for more than specified in state
law.
Min. Annual
Newly Created
Possibie Abatement
Ca ital Investment
Pa roll Created
Jobs
a~s Onl
lst 3 2e
250 000- 350 000
125 000
10-25
50
26
~
30%
$350 001-$500 000
$325 000
-
$500 001-$750 000
$635 000
51-75
40%
$750 001-$1 000,000
$945 000
76-100
50%
$1 000 001-$1 250 000
$1 260 000
101-125
6
%
$1 250 001-$1 500 000
$1 570 000
126-150
0
$1 500 001-$1 750 000
$1 880 000
151-175
80%
$1 750 001-$2 000 000
$2 190 000
176-200
9
2 000 001- 3 000 000
2 500 000
201-225
00%
80
e) If a newly created business is located or will locate within an Enterprise Zone, an
additional 10 to 20% abatement may be available as individually negotiated, with total
abatement not to exceed 100%.
VII. Tax Abatement for Existing Employers Regarding Real or Personal Property.
The City recognizes the value of its existing Employers to the well-being of the
community and desires to encourage existing Employers to remain in the City and to improve
their respective businesses and industries, as well as their profitability. Accordingly, if an
existing Employer (as opposed to a newly created business or industry moving into the City),
owns or leases an Authorized Facility and has plans to improve such Property by constructing
new improvements on its Real Property and/or adding new Personal Property to its Authorized
Facility which qualify for tax abatement under these Criteria and Guidelines, such Employer
may be eligible for tax abatement with respect to such improvements to its Real Property or its
new Personal Property under the provisions of Article V and IV above, even if no new Jobs or
Newly Created Minimum Annual Payroll are created. In these cases involving existing
Employers, the criteria for tax abatement for improvements to Real Property at Authorized
Facilities are identical to that set forth in Article V above (except that no new Jobs or Newly
Created Minimum Annual Payroll are required); and the criteria for tax abatement for new
Personal Property added to Authorized Facilities are identical to that set forth in Article VI
above (except that no new Jobs or Newly Created Minimum Annual Payroll are required). In
this regard, however, the City encourages existing Employers to retain as many Jobs and as
much existing Annual Payroll as is economically feasible for the existing Employer to do and
remain competitive in its industry.
VIII. 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 or County Judge, with a
copy of the said application to be forwarded by the applicant to the Executive Director of the
Paris Economic Development Corporation.
b) Form. The application shall consist of a completed application form accompanied by
the following items:
1) A general description of the improvements to be undertaken together with the
projected new value to the Property and the type of business operation proposed;
2) A detailed descriptive list of the improvements for which abatement is
requested;
3) A list of the kind, number, and location of all proposed improvements of the
Properly;
81
4) A list of the number and type of Jobs created, including information
pertaining to anticipated job transfers;
5) A metes and bounds description and plat of the proposed Reinvestment Zone that
shows all roadways within 200 feet of the Reinvestment Zone and all existing zoning and
land uses within 200 feet of the Reinvestment Zone;
6) A time schedule for undertaking and completing the proposed
improvements;
7) The type and value of any economic development incentives requested; and
8) Any other information about the proposed project as may be required by the City or
as deemed desirable by the City.
c) Review. Once the application has been received, the information submitted will be
reviewed by the Tax Abatement Committee for completeness and accuracy. The Committee will
then distribute the application to the appropriate department heads and taxing entities for review
and comment. In addition, no tax abatement application shall be considered for further
processing by the governmental entities unless first approved by the governing board of the
Paris Economic Development Corporation.
d) Public Hearing. The City will comply with certain public notices and hearings
required as mandated by state law under the Property Redevelopment and Tax Abatement Act
prior to the designation of a Reinvestment Zone and execution of a taac abatement agreement. The
City may adopt an ordinance designating a tax abatement Reinvestment Zone only after notice of
a public hearing has been published at least seven (7) days before the date of the hearing, and al]
other procedural requirements of Chapter 312 of the Texas Tax Code have been satisfied.
e) Findings. In order to enter into an agreement, the City must find that the terms of the
proposed agreement comply with these Guidelines and Criteria, that there will be no
substantial adverse affect on the provision of City services or tax base, and that the planned use of
the Property will not constitute a hazard to public safety, health or morals. Incident to approval of
any ordinance designating a Reinvestment Zone, the City shall find that the improvements sought
are feasible and practical and would be a benefit to the land to be included in the Reinvestment
Zone and to the City after the expiration of the agreement.
0 Variances. Requests for variance from the provisions of these Guidelines may be
made in writing to the City; provided, however, that in no event shall the term of any
abatement exceed the period authorized by applicable state law. Such request shall include a
complete description of the circumstances requiring a variance. Approval of a request for
variance shall require the affirmative vote of three-fourths (3/4) of the members of the City
Council.
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IX. Agreement.
After approval, the City shall formally pass an order or resolution and authorize the
execution of an agreement with the owner and/or lessee of the Authorized Facility which 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 Authorized 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 Reinvestment Zone during the period
that property tax abatement is in effect;
h) That access to the project is 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 that
the owner is in compliance with each applicable term 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 may cancel or modify the agreement if the Property owner fails to
comply with the agreement.
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X. 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 time specified in such notice ("Cure Period"), then the agreement may be modified
or terminated without further notice. In the event the company or individual allows its ad
valorem taxes owed to the City to become delinyuent and fails to timely and properly follow the
legal procedures for their protest and/or contest, or 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. At any time before the expiration, any tax abatement agreement may
be tertninated by mutual consent of all parties involved in the same manner that the agreement
was executed.
XI. 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 until the
agreement is executed. Such information in the custody of the City after the agreement is
executed is not confidential under these Guidelines.
XII. Proposed Tax Abatement Agreements to be decided on an Individual Basis.
The adoption of these Guidelines by the City does not limit the discretion of the City
Council to decide whether to enter into a specific tax abatement agreement, or limit the discretion
of the City Council to delegate to its employees the authority to determine whether or not the
City should consider a particular application or request for tax abatement, or create any property,
contract, or other legal right in any person or entity to have the City Council consider or grant a
specified application or request for tax abatement.
XIII. 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
Authorized Facility to determine if the terms and conditions of the agreement are being met. All
inspections will be made only after the giving of at least twenty-four (24) hours' prior notice
and will only be conducted in such a manner as to not unreasonably interfere with the
construction and/or operation of the Authorized Facility. All inspections will be made with one
or more representatives of the company or individual and in accordance with its safety standards.
Upon completion of construction, the City shall annually evaluate each Authorized
Facility receiving abatement to ensure compliance with the agreement and report possible
violations of the agreement to the City Council.
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XIV. 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 original agreement or to delete provisions that were contained in the
original agreement. The modification must be made by the same procedure by which the
original agreement was approved and e ment or t e term of the aba ement g anted herem t be
modified to extend the term of the agr
beyond the time permitted by state law.
XV. Assignment.
An agreement may be assigned to a new owner or ]essee of the Authorized Facility only
with the prior written 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 contemplat~e t have b e n complet d. No assignment shall b'e xcept
to the extent such improvements o pars
ns uncu edm taxes or other
approved if the assignor or the assign Unaer he indebted
obligations, or if any event of default
XVI. Administration, Contract Review and Monitoring,.and Reporting.
a) The Paris Economic Development Corporation shall be primarily responsible for the
administration, review, and monitoring of tax abatement agreements authorized by the City
under these Guidelines. These responsibilities
th,the teams of he greementicipants in tax
abatement agreements are in full op ance
b) The Paris Economic Development Corporation shall expeditiously advise the City in
writing of any instances of contract non-compliance by tax abatement participants. In addition,
the Paris Economic Development Corporation shall, on an annual basis, conduct a performance
review of the activities of each tax abatement participant and report the findings of such review
to the City Council.
c) The City shall retain the right to independently review and audit the activities of tax
abatement participants.
d) The City shall be responsible for enforcement of the terms of any tax abatement
agreement authorized hereunder.
XVII. Amendments.
These Guidelines are effective for a two (2) 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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For a tax abatement application or additional information contact:
Paris Economic Development Corporation 1125 Bonham Street
Paris, Texas 75460
903-784-6964
Fax 903-784-2503
Email parisedc@paristexasusa.com
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