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2012-073 RES APPROVING AND AUTHORIZING TAX ABATEMENT AGREEMENT WITH KIMBERLY-CLARK CORPORATIONRESOLUTION NO. 2012-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; APPROVING A1VD AUTHORIZING A TAX ABATEMENT AGREEMENT WITH KIMBERLY-CLARK CORPORATION; MAKING OTHER FINDIIVGS 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 Kimberly-Clark 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, a public hearing was held before the City Council on August 13, 2012 to allow all interested persons to speak about the proposed Tax Abatement 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. 2005-144 passed on December 12, 2005, and as amended by Resolution No. 2006 - 042 and Resolution No. 2012-072, dated 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. 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 13th day of August, 2012. ATTEST: a ice Ellis, City Clerk APPROVED AS TO PORM: �./. W. Kent McIlya , ity Attorney � THE STATE OF TEXAS ) ) COUNTY OF LAMAR ) TAX ABATEMENT AGREEMENT 0 This Tax Abatement Agreement (the "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 HIMBERLY-CLARK CORPORATION, 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 8th day of August, 2011, pass Ordinance No. 2011-026, (hereinafter referred to as the "ORDINANCE") authorizing the City of Paris to participate in the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code (the "Act"); 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; and WHEREAS, an Enterprise Zone Project Designation was granted for the "project" described in the ORDINANCE and in this Agreement (hereinafter called the "Project") by letter addressed to the City of Paris, Texas, and to the Company, dated December 30, 2011, by the Office of the Governor of the State of Texas (Economic Development & Tourism), in which a project designation number of EP811-090111-P was assigned to this Project; 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 (the "Reinvestment Zone"); and the City of Paris, Texas, ordained in Section 9 of the ORDINANCE that the Enterprise Zone areas within the City (in which this Project is located) are Reinvestment Zones under the provisions of the Texas Tax Code, Chapter 312; and WHEREAS, the City Council of the City of Paris did heretofore, on the 13`h day of August, 2012, in Resolution No. 2012-072, dated August 13, 2012, 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; WHEREAS, the Property, as hereinafter defined, is situated within a Reinvestment Zone described or referred to in the ORDINANCE; and the contemplated use of the Property, and the improvements to be installed therein in the amounts set forth in this Agreement, and the other terms hereof are consistent with encouraging development 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, THEREFORE, the Parties hereto do mutually contract and agree as follows: I. Term 1.1 This Agreement is executed on August 13, 2012, but the term of this tax abatement agreement shall be effective January 1, 2014 and shall expire on December 31, 2023. II. The "Property" - Area to be Improved 2.1 The Improvements (defined in paragraph III, below) which are the subject of this Agreement shall be located within that portion of the buildings (herein called the "Property") located at the Paris, Texas Plant owned by the Owner and described in Exhibit A, attached hereto (which Property is within the Reinvestment Zone and the Enterprise Zone). III. Owner's Land - Where Improvements Will Be Located 3.1 The Owner's current facilities consist of land, buildings, and other structural improvements at the Owner's Paris, Texas plant described in Exhibit B, attached hereto. The Owner shall make improvements and replacements (herein called the "Improvements") to the equipment within the Property in the locations shown on Exhibit A above. The Owner's operations in Paris, Texas, are part of its Personal Care Division which manufactures and markets disposable diapers, training and youth pants, swim pants, baby wipes, feminine incontinence care products and related products. Over the next five years, the Owner has determined to invest approximately $150 million dollars to significantly enhance its machinery and equipment at its Paris, Texas plant, located at Loop 286 SW and FM 137, in Paris, Lamar County, Texas, to create the conditions necessary for long-term growth, all as is more particularly shown in detail in Exhibit A attached hereto. These expenditures are "product improvement investments related to existing production lines", in the Baby Care and Child Care Buildings, and Case Handling Upgrades in the Logistics Building; and they will consist of investments made to upgrade machinery and equipment technology used in the diaper manufacturing process specifically related to the Owner's products known as Huggies, Pull-Ups, Goodnights and Little Swimmers produced at the Paris, Texas plant. For example, new equipment enhancements will enable the Owner to add new features to its Pull-Up training pants, and to introduce a new slip-on diaper, which would, in turn, allow the Owner to remain competitive with other product offerings in the market. These capital spending investments will be made for the Improvements annually, as is shown in Exhibit A attached hereto. A detailed list of the Improvements proposedto be installed by the Owner in the year 2013 is attached hereto as Exhibit C, and other Improvements will be installed in the Logistics Building in the year 2014, together with the Improvements to be installed in the Baby Care and Child Care Buildings in each of the years 2014 through and including 2017, all of which will also be described in the City's Certificate of Completion prepared for the City by the Owner and verified by the City after the completion and installation of the Improvements. Such completed and verified list shall be furnished to and filed with the Chief Appraiser of the Lamar County Appraisal District on an annual basis from 2013 through 2017. The City's Certificate of Completion shall be duly executed by the Mayor of the City of Paris in the form attached hereto as Exhibit D. The Improvements will cost approximately $150,000,000.00 in the aggregate, and shall be substantially completed in various phases prior to December 30, 2017, as is shown on the chart attached hereto as Exhibit E; 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 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 Owner 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 and the Improvements, including the specific units of new equipment as identified herein, as a production and manufacturing plant. V. Consideration Jobs 5.1 The City has provided in its Guidelines and Criteria for Tax Abatements, substantially as follows in this regard: If an existing Employer owns or leases an Authorized Facility (such as the Plant 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 be 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 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 assessed upon the increased value of the Improvements made by Owner to the Property described in Section III of this Agreement, over the value in the year in which this Agreement is executed, in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers 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 and personal 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 l, 2013. The current abatement which is the subject of this Agreement shall extend for a period of ten (10) years beginning January 1, 2014. 7.2 The abatement ganted herein shall be subject to and governed by the Guidelines and Criteria for Tax Abatements, a copy of which is attached hereto as Exhibit F, and Owner shall comply with the requirements of Exhibit F in the performance of this Agreement, save and except that, in the event of a conflict betwcen the requirements of E�ibit F and this Agreement, this Agraement shall control. 7.3 Owner covenants and agrees that subsequent to the date of this Ageement, any application by Owner for a new tax abatement for equipment or real property located within the Property and the Reinvestment 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. 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 ha�ing responsibility for the approval of, this Ageement. IX. Conditions 9.1 The terms and conditions of this Agreement are binding upon and enforceable against and with respect to 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 agees to indemnify and hold harmless the Owner therefrom. X. Compliance Provisions 10.1 The Owner agees 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 of notice in writing 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; (d) Actual cost of capital Improvements; and, (e) 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. 6 _ � 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 13th day of August, 2012, 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 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: Philip Senn, Plant Manager 2466 F. M. 137 Paris, TX 75460 With a Copv To• Mr. Kirk Glasby DuCharme, McMillen & Associates, Inc. 12710 Research Blvd, Suite 305 Austin, Texas 78759 --• City City Manager City of Paris P. 0. Box 9037 Paris, Texas 75461-9037 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 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 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. s Witness our hands this 13th day of August, 2012. ATTEST: � CITY OF PARIS, TEXAS By: A.J. Hashmi, M.D., Mayor APPROVED AS TO FORM: Janice Ellis, City Clerk W. Kent McIlyar, City Attorney KIMBERLY-CLARK By: ATTEST: Secretary CORPORATION Vice President-Taxes ,-. --� LI5T OF EXHIBITS: (To be attached to this Agreement) A= The Property - Reinvestment Zone (the areas to contain the new Improvements within the buildings at the Plant) B= Field notes or plat of the Kimberly-Clark plant in Paris, TX. C= Detailed descriptive list of the new Improvements which are the subject of this Tax Abatement D= City of Paris Certificate of Completion E= Completion Chart Showing Plans for Capital Investment to Install the Improvements by the Company and Tax Abatement F= City of Paris, Texas Guidelines and Criteria for Tax Abatement �o CERTIFICATE OF COMPLETION STATE OF TEXAS ) COUNTY OF LAMAR ) CITY OF PARIS ) The City of Paris, Texas, has included the Property described in Exhibit A attached hereto into an Enterprise Zone established by Ordinance No. 2011-026 on August 8, 2011, and has executed and delivered a Tax Abatement Agreement with KIMBERLY-CLARK CORPORATION for certain new equipment to be installed at the corporation's plant in Paris, Texas (The "Improvements"). KIMBERLY-CLARK CORPORATION 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 in which the Tax Abatement Agreement was executed, for a duration of ten (10) years, beginning January 1, 2013. APPROVED this day of , 20 A.J. Hashmi, M.D., Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney LIST OF EXHIBITS: (To be attached to this Agreement) A= The Property - Reinvestment Zone (the areas to contain the new Improvements within the buildings at the Plant) B= Field notes or plat of the Kimberly-Clark plant in Paris, TX. C= Detailed descriptive list of the new Improvements which are the subject of this Tax Abatement D= City of Paris Certificate of Completion E= Completion Chart Showing Plans for Capital Investment to Install the Improvements by the Company and Tax Abatement F= City of Paris, Texas Guidelines and Criteria for Tax Abatement 10 CERTIFICATE OF COMPLETION STATE OF TEXAS ) COUNTY OF LAMAR ) CITY OF PARIS ) The City of Paris, Texas, has included the Property described in Exhibit A attached hereto into an Enterprise Zone established by Ordinance No. 2011-026 on August 8, 2011, and has executed and delivered a Tax Abatement Agreement with KIMBERLY-CLARK CORPORATION for certain new equipment to be installed at the corporation's plant in Paris, Texas (The "Improvements"). KIMBERLY-CLARK CORPORATION 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 in which the Tax Abatement Agreement was executed, far a duration of ten (10) years, beginning January 1, 2013. APPROVED this day of , 20 A.J. Hashmi, M.D., Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney � Exhibit A (Reinvestment Zone Property) �' � '� � +�• '�r. � ,� ,�- �`.� G'; �. .� _,,, � ,� , � � t�.� ``-� —� C�7 � � � � -� �: � � � � C� � � � � � � � � � � "[? Q -� Q � � � ti C � i7 C�.. �.. 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' I : i 1 :x- � � A ' YG^ .te�._ , a : { , i ir ��+ � � ..:�w�, !� t �� r.� '�- j � ' ``ti � ��' �- "'S-"+.�.= 2'ifi.ii' �:` � -- � Jt � � ~. f _ �. :. _ �' i.-� �._ ,�.��:�.:..4...`4.�i .� � �� tt ' ; ,;,�.-� . __ �� '=': �—,, -- � � � 4 � � ' ' � i��fii{ - � . � _ .... ... � _,;�.: � . ._ - _ _ , ,, . , _ . � I i!i �� ( '{ l�t��' ;i �� ' _ ��. .- I �'' " �� Ei ��' ��?! i� �''i �= ' ,-- � �, � � � , ��'�i� �� i' � +�'� �' ,` - ��` � ° �i.;� � Ji: 5 i � ..,_t..� .1.: F��F'lXCtil: . �',�_ . ..:._ .. �'« 1 i � , a i�y� 'i t -+�xt - � ` + 'I t�. .. a : #' i � � i �+ ... . .'^t`C� `C� : ��Ll��'1'��i �' 'r�c ,' s i �r � � E' -,.w+,?�*+�.. . � 1,� !.:t .. � § l� . t � �M� � . . � . {R F .� t'� ) ' 1- 'r4 � �- e , �-�,- �-; ; , � � � : K, , -i t , ,; ' �;�t � � � �' ; _ t I i'1 �" a e ' � . � �' .'_�� (� • t i.�l�.i.�.( �,lil� i�;j � r�l.(I ia,}?. i:.'_ j � � { T r� � r �� - -i.� � � � � ,°.�, �k � � i'T`� � +t =r!� j33 � ��i �`5 %,i p� t _ ,.Y� � �. �'�j. __. .�' f"�T��t I�K # j i��J i,i�',� f� �',�.5.,,4..: .• `. � ; ei �i !i � 7"'�T. si - � t '} . :� � i t,�}i�� ';' � F �' ��i �!i; � ' � J j, i �. �i i !�� fl�. � .7.�. � S. �t 3 i�ilt�: ��} � i i�i�� .3� �, I�.. � � � j __l�'�a' .,y�S �' ta,� f.1�� Yt r, E{( �, �� II �'j, j �'� i• 4 3�;��i: � t �t �� ' � � 3 :��i'Ij,i.i. ��e iy - jtK%( ��. �'� .�: +; . �.�, ��.. r" 1i _ .-r`y:�':�j � �� . E -v .. � . � . � � ,� S M " � : E1:.F--�., _t:.R!?i�A��.��'.'�Y � iy ��^ 3:ti , ._..1't=. ��: ��.. �� -� -�i �'3i.i..t� ! �, #, �, � `; , ... �t11 11�,..�+ � �� f � � _ _ - ; !: I�l� '� � t' ��' �. � 'fi'�', �� i �� ..' i' � ii��r �� .�i.f',�' i ,. r� u_dr i1-. -� � i';��* ,�• �- + � : r _. �".� ..k.,`.'".k. . F �� . � �. . .. � . i . t�. 1.� � ., � � $ � �� 1 � l..i.� 1s , .1: : ..;.a �.1 '� ' ��,�� '� ' , a � t 1� j �� _ ��( I � '� ''� � � � � ' '! �i! ` � ,I ''1 �i�' � � �' j;P� 11� 1 r I �+.tMior�� K �c A '..'k � [� �p� r� ��:: ?`��..h . .�ii! �i � j{ li�� 4i, _.... ,. . �1� .s• .. � ��j..[: t'.f'_ F'A ��.� 2: �� '�Kf�la a��.��<stfr�i_. {-i��T� i-��._.,�,� �.. _ .. t. } H�tt t�i. �� f ��i� i.3 ' � �t l,p. � ; �,k�. `� j-. ^ �� '� �.�� i ��3� � (��I; J� . , fi' ` - .- . . _.. . :.. ._. ... � �� , I' : , � i � S ; �, -- - . _ _ . . .. _ _. __, . ... . . r._ . # ; ;� Exhibit B (Kimberly-Clark Property) � , •j • • . . . . - , , . . . . . . . .. . . . . �.. . . . . :$ .. . . � . ' � Xx1tIdl!' '�it . �q� . . ' . " ' . stlwtiea Ft�ovl:�i �stes sov�h so acp. Wcsc or tt� ciSy.of 1'arS:; te�ny�.or twa� ` nd St+la of Tcs+t, t p�rt of t�� 1=s+< <�isc Surrcy �162. l.ss Jar�e+�n Svrvp� t4lf. n1 t1� l�!c1 •[Mer Svrvey �513, ind bei� i tritl ot.l�nd' �onrc�cd i�a Paris. 7e:►s ndusl�i�1 Tonaa�tioa by dccd retordcd.fn Ya1. SSO, Pipc 6s6. of thc.t�c6 Reto�ds of _ ��a cw�t� �na st,�:. . � a��q st �■ ;roa yIn tor corner tn t�e SouLh •toeneary �inc of tha 7ezis •an0 �i�;tic Ratiro�d �t lha �orth*+est corncr of :ald fouadslioa tratt et•land, •sid rotet ,��,�g ��c a�ett ��orlherly I+orlloe��t tornnr of t tr�tt of l�nd.tonreyrd O�int Joncs et a dced.recorQcd Sn Yal. 5'1� �'spa S)9 ot s+1� Dccd Pecords..' ' 7�« Sa+IA �t 636 tt. sn iroa Fie oR � Paol bapk !nd �'ontinvins oa t tdl�1 dls ��„cQ ot �00 ft. ta i Pelnt [or corner in sild poet at t!►e Southwe�t cor�ef of isld ovnd�«eA lr�ct �f l��e snd ak e� tor�er of s�id 3onas ct a1 t�act of �=nd; �.1'1�ance s1o�q thc South Bounai�y L�n��of s�td roundal�oe t��ct is'�ollowt: 5out� �gq p�. East j� K��.• ��t 3)a2 tt.: ltortA 8! Dcq. Csst �SSI tt. to. �a tron pin fer corner it lhe SoutM�st eorner ot s�id fouAd+tSoa ttaetat tsnd snd.tba �ortbo�rst :on►cr.ef s:id Jones ct t1 traet ot 7tnd . - }�nce q6rtb 31 Dc4• �0 Ytn. [:st a�eny t?�s.W�st Oovndsry tlne oT itr� �to+d 13�' dtst�sce�et �30 L�• tQ s teacrctt �ssrkcr to� eoroeri . • • . ihc�ce slonq t1K SoutAer3y �oundl5 HSn� ldeitt65f f�: Kortl�s�f�0e9.�1� Ht� 1!ett IS Yia: 1t�st 7I! ft ; Rortlt s4 �4• - IOY tt.: f:ostA 44 �c9• ucit 2T6 tt. to a eoacr�tc �rtcr iar eorner tt�t� �4ltortli ' crly ,� �`��Seut 7E D�4•skcst ilon�ttAE S i th Eoun6�� . ' ,. i Lina of si.Sa 7es=s =nd Pactfts Wi�ro�B: � i�iYt+nc� ofi 3i64 tt. to t1+t �P1�ce ot• • , . be9�noi�,� • • . � s�ci 847 +�c2�5 . . ' • • . . . • • • �- �. . . . �: : . ' . . ' . , .. �,. . , . . ... . � � . . , .�.i :��::•f.• �'!q,"; • y •'� ��j�'� �W..L'.'i � •' '��I�W . i:: ..t �'• : ' :'i...� � 'v .` i.•i • . ' .l• •:.` .•.,. ,t �'.y.�,' .• . . ,b• . . . �.�l,^.i �i \. ��'.i�•�� `t: ��/ 'i l��r �1'• �� tyl�''�'�� • �� , ' � � • � � _ . � � .. . ,. � J.:, �4fi�� . .�1i�'11 .i�•.1:�.�.. . �. � ,'•-` � . . : . . �.�1'�•�, . .�..� • . 11' . . . . . . . •\• , . . . �. • • �-� � �,� • . , • ' _, �, . � ... . . Silsuted �1+ovl ?�i +�f1cs South �SO Ccp. k`ciT of• tfir C�ttY qf ��rts.� tt�wi(�' of.i«-.c .•- .. .. n+ Stitc o! Tes:s. a NrL of the isa�c Crofse Su�cy tlGt s�� tt� �.�.�� aM. sYr.a ... . �3y1.. �nd bcing s Nrt o! i tGE.Q6 tac tnct ot'l+nd convU'cQ Doan� Jone�, cl a1 6� ' .. dred rKOr� �if �n�SmA�ptA t��tornert�t ibo Nortlusst t rne� of�tb tt.lt.s�euriand. .. • prg iaa1+�9 ' , ••��p, j» >t se el corncr of s+td Jones ct s1 trace of �lsnd. . :, .:' .. . ne�e ston� � sa►w aow�a�� `i� of :+ia ao� e= s7 ��c ot ta�e as� fd1- •. ��:ko�. g9.p�.g. �S Hi�. =�rst 6/! ft.: South 8f Ocg. �0 K�n. East 3ab ft.s GiL tt �. ,' •' i »6�,5 tt.�ssiro tAc .Soutluist cocncr of s�fd Cruise S�'�'�J' a� continui� an t: to4 Ifs«Me o 71'�4.5 tt. to ae frOq PtA !or torner; . . .. 7�� Korlt 7I Oe9. 30 Kln. ttst slony tiu k'dst Dovndary, L;ne of t=r� Rost 1�7 ' . . s dlst+�c� e( satd �ics ctaal4tneetoff nd an�d�the S�outl�esitFeprncrr o! s�ict ot� . . - ��nd �aavq�e6,t1�e Paris. Tcxat fndrstrf��, fognd+ttoa t�y dcc� rccordcd t� Yo�. LZI. �. • fs9a 579. of ss�d �� Pctords; • . 71i��,�� ttorig UK SoutA 8ovnd�ry.tinc ot s:id Fovnditlan anQ thc I�rth B�+nJiry ��M ot siid Jones at t� tr�et o! �snd ss folia+st .Soath t4 �cg. ti3cst �SS�: tt.i 1:orth , D4 p�g• 33 NiR. Yest SI82 !t. to t potnt for eocner•in a yo�l +t �lbe So�tlirest cor� Qf ii�a e��Yt��e;tOe¢t �3�t3 aa Esst t diatancs oft7tt�ft� t ftMe piaec,of .b�c�qf�ie� '�' ;• , . . . � � . .. �►c7_;,_I= � • • � • � Situ�ted I� Rlles Sou�A SO beq. l'c:t of the"tity ot Taris, Couri� tt [a,w°. .,' . • an� Stite of Tcxss• a p�rt ot the Leo�uel [wer Survy� {3}3, inE Lcinp • part et , .' •. ' a 26t,06 scrs .liact ot 1=nd convcycd Donn� Joncs. rt i� by dcad tC[orOtQ �R Y01. I•' ' SSt, iipr 571. ot if�e Dacd Rccordt ot sstd Covn�y snd.Sttfe. • •:1 .�. ": . 8c9inRSng tt a�l iran pSa tar tomcr in t1�a 1►c�t 6oundary Linc of s�id tner ."��.'' , .. • S�rvp� st su et eerner a! sttd Jones Et:•tl tnct o( 1tnd; ssid j+o(nt belag tt�e • ' ' • . SovtlKast corecr of tbe ls�ie Crvise Sv�vcy 11EI sn� tAE 1�orthc�st cor� of the' � . A.i.f` i F.ICR.' �o. Survqy tE3). � ; , . . . . . thenGf Sovtb 0 Dcg.'IS ilin. ltcst a di:t:nce ot 42t tt. Lo.aa iro,� �i� tot . . . . eorner at tAc ►bst fastcrly Soutl�ctt torncf of �atd Joncs• �t tl tra�t of 1}nQ; ,•• T?,race tist t distiixc of 1G62 ft, to :n fron pta tor corecr at 1Ae Sa,tiurc:t . � carner of s ir�ci of ltnd tomQyeQ Bl.17y J. Pirirldpe L� Qeed recerded !a Yol: • :, .. . . .._.._.SBI, iipe i0t.:-o1'°s7ld.bcr�d'�eeords; said-pofni•bcitrq itc�-�t-dist�t+rcc�bF-?6Q��ft:---�: _. fro� t1�6 �est Iasle�ly So,►thr+st corncr ol stid •Jonct ct ti treC! eT i+�d; ' . : 7hence t�brtA 31 Ocg. Esst s df�it.uc of '750 tt. ta ao tron pi1►, for eorner • •. st t�e Itorth�.s:t �orner of szid iarirSdQe traet of S�nd: • ' •'. •7hcncc SoolA S9 Dcq. fS ?�(n. Csst s dtslsoc� of T00 fc. to aa iro� pta for , � coroe� st tbe 3�or[be�st eorner• of. sstd' P�rtrid9e irset ot 7+nd; � ' • T1Knce:leng tAe 1!cst Soui,d;ry Lino�of far� Ros6 13� ss lolleKt: �round s • . . ' ev�e fo-the itft �t! ft.; l:orih YS O�y. 3S J;lo. Gst 76. lt.i F'orib 3I LeS. 30 • ,', �• ' };In. tssR 61E tt. te sn iroa yta for eorner; �. . •. .•• • il,encE �'est a distance af I82b ft. to the p)+ce o! begiru►tn9 . , , .. . . iUWECI` to'aii snQ gs� laast datod Iwgust �� 37i2, to Chal�esa �' • ,' Operatinq Coe�psny� apptarieg o! r�eord ia Dook 12, psgs !i, Oil aad Cas I.�trs A�oosd� o! i+aas County� l�xss, aad ss awt:�d�d on Ju1y i; 1lf2;, betxs�n Dow�s .Too�s et �l +na.�or+ CJ►�s�iosl oo�auy. I�vee�ssor to ChaloaFs opesatiaq Co�ya�yri� =uQ �a�aetAl� ia ta�os ot S�xss poves i biqAt � �P=i1Y a• syy�srs of rseosE. sud as sbeua ee s�sw� �ads i�►_J. K H�i'too �� . xats�u�a r�,bu� aa�yo� ot r.�., fio. 4025. d�esd •APsil zz i9�2, �ad t' ta sssssvttioo ot 1/ltth Aoa�pastieipatiea sayaltr iat�s��t �or i3 yssr� rs�sia.d !a dasd daesd Ms�r 22 1971 troa Jaek Daafc�ssd iTilliaw •t 41 to • J. D. I1eLtv�i1la s�eos6ad Sa �ooic 5�7. T�• 735, .Lmss Cousq Dr�d paeosd�. ' • _��$• '.. � � . . !tu �7,n�c2�41 , ' � • . . .. . �. � �� ,� , : �:: : � ,;.'. .: : ., .� . :. ; � :. �. . : . . . ' .. . : � .. . � � ... . . . .� ... .. � .•..,�: .. , : , .' :� ..,� � � :,� . . . .. � . ... � . -'•�'� ' �:.. . �...T�._ ... �• r,_'; r . . r`.� araa . ' i ' � - . v�s�a��" e.i/flF�'s+fu�4 ap�?Fr:*,�'ri'.s�rar-� ' , .. ' ' ��,� .+r�s+a+awosr•vrv -�.� � , +►++�''�:e�3*'r arinr , . ary�' �92��- ' CT�.'�s''T"1�Sas'��Ih=' E �'ats�j�t�',.� � '�rss . .•�� ' • ' ' • . . • • , • ra+�a+�sta:�c�=s: _at�arsa�tt:••••� . r� - � Li��li� . 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' ` ��' r � �ssu� �o . .�ti . � � �r�ucu � EXHIBIT C (Detailed Descriptive List of Improvements to be Installed by Owner) During the year, 2013: (Kind, Number and Location) Bab�Care Building Improvements: ($7.� MM in capital spending by Owner) New unwinding equipment and hardware - 4 assets New equipment to improve outer cover - 4 assets New equipment to handle dust containment - 8 assets New equipment to improve absorbency - number of assets not yet determined Child Care Buildin� Improvements: ($12.2 MM in capital spending by Owner) New equipment to improve leg elastic and side panels - 3 assets New equipment to improve waist elastic - 3 assets New equipment to increase capability to produce swim pants - 3 assets New equipment to handle dust containment - 10 assets New equipment to change product length - 3 assets New equipment to increase multiple size capability - 1 asset Case Hanc�ling Upgrade in Logistics B�ilding: ($4.0 MM in capital spending by Qwner) Begin purchase of equipment to support installation of 2 robotic palletizers During each of the years, 2014 - 2Q17: (Kind, numher and location of the equipment wilI be communicated to the Offce af the City Manager of the City of Paris, Texas (or to another Office designated by the City), and to the Lamar County Tax Assessor-Collector in the Lamar CountyAppraisal �istrect Office, when the equipment to be instalIed during each such year is f nally determined by the Owner, or is instailed, so that such equipment can be inspected by such Offices in each year). Exhibit D (Certificate of Completion) � CERTIFICATE OF COMPLETION STATE OF TEXAS COUNTY OF LAMAR CITY OF PARIS --� The City of Paris, Texas, has included the Property described in Exhibit A attached hereto into a Reinvestment Zone established by Ordinance No. 2011-026 on August 8, 2011, and has executed and delivered a Tax Abatement Agreement with KIMBERLY-CLARK CORPORATION for certain equipment (the "Improvements") to be installed at the corporation's plant in Paris, Texas. KIMBERLY-CLARK CORPORATION 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 Ta�c 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 in which the Tax Abatement Agreement was executed, for a duration of ten (10) years, beginning January 1, 2013. APPROVED this day of , 20_ Mayor ATTEST: Janice Ellis, City Clerk : . . . �� • �C�� : ►� City Attorney EXHIBIT E (Completion Chart by Kimberly-Clark Corporation) d �+ G W � A C d u N C W E d 10 .O Q Y A v > d AC G Y x o 0o 0 0 0 0 0O 0.+ n c W v�i O O o O v�i O � u�i N m u� 0 O� 0 0 � O � ae 1� Ol Ql O m ^ VI g N m N Y 1r7 oD P 00 O 00 � 00 � O.-i N I� N N M r1 ry N VI N V/ N N t/� tA {/� N N W O O O O Oo 0o p O Oo N vi 0 0 0 o O O a 0 O o O ef O O O O O O V� n^ O O O O p O � O N em-� .-�i � O m m O N Y vi a0 a0 O Vi n � �f 1� Q.ti V o0 O 'ti .y Q r+i .r N tA N 1/� N N Vf N N V1 N tA x O O O O C O O O 00 00 O W O O S O O O � p �� M p O O�o m nf v 00 �°n v°, o° °o °o °o o � ��°n a n n oYrvaryo.-� o o � �.�v��o ao N t0 Oi O �i O .-i .r p �o .-i 0 N r1 N lp � N N V1 N N N 1A y yt y y � X p g 8 p�$ �p O �O to O W O O O O O O O ' N N p p O C V� vn�i � OO O� � o � � n u�i N m o+ o a+ > � .; � o 0 oc ., od ° .; .�: "'� e�l N N 1� !� N {n V/ Vf tA vf V4 N v/ N Vf V1 � m m .r W oSBg g , �,�, �, A t0 O O O O S O ° � \ vi t0 00 u �„ u, .. m�o �n o �°n o a°,ti° rv 7 O' ��^-I N N N O� O � O N eti e-1 Q1 p N � aA tA N iA N tA VI �A N Vf H 9 y O O O X � � p O N O O � N � ` W O O O O ' O u1 VI a A'!� �� O O O v�i � O � .,i e� ni Q U � O O1 10 00 rv � N � 00 Yry Q � Y ti N N N N N O ti O N�-I �-i O .y .y N N�/1 N N N iA N V1 Vf {/� N 4+ O O O Op pO O ' O O O�i A O�� 8 O O o\° 0 � ln l0 00 U n O 1D 00 N 0 N� � C rv N N}� N N N N O N O N e-1 rl Q O O N '� N V1 V1 N N N N Vy N y p �o m m W O O O p N O O � O .�i oM0 A m� O o � o\° � a° �o �i O u n N m n g n o c^, rn o N Y O N 00 .-i .-� .-i � .i .ti N N t+f tV 00 CO O N aA N Vf V� N Vf aA N N 0 g O O v1 �n O W O O S O ' v� r� q,,, o 0 0 � v v o; l' p� g � $ �°c S M o� �} IVf M t0 .-1 l0 �-I ri O N M 1!1 y� M N N N t A N V � N N O Op pO r pp p� W O p p a o 0 0 �� n 1� p � n rn U ~ O CJ Q O OO t!1 N N fIl } '7 R` rl N N � ry '� O N N N aA N tA V1 {A co ao .-� a 1D N H N n � 1M1 N d 7 � � C � � E /0 � > = � ' � d~ v A'^ � A � E E E E E � c T�e n�p A q A d ° 3 H N M r�+l M n'1 d E � A A 01 \ � � F y N N aA N tA ` d « .O � 3 r 61 « rl N t!1 O�!1 a � �C � ��[ M d � A O y u a�i u a�i a�i Q a a q ~ q a Z �,~q > > > > > ° rl Cu/ W W 7uJ 0�1 d q ~ N d � O O O O O O N d d n` o` a` d a �o.-��o o, ^�mn nmoo 0 u1 V O V1 Vf m n.�-� N� n Oa0 v�i m O1 N l0 ri Qi tn n'I Oi �-1 .-� � N Vf O o0 m O O1 Q.-� N p�p N � rl � n N 1/f 1A N!A N N tA N N tA N aA N .� a �n .+ .. �o .-� a .. n N � 1D N 00 Q � e-1 r1 Nt lD O O�f n N tD 01 00 er V1 ad o a ni �o .; •+ ^n N�c e .� O n M N �'~ lo O m e+� tvi N�-1 N lD N ��-1 ��-�i lD (�f OD t0 00 �-i ti/ N N N va y� y H H N N Vf N N 01 1/1 1� OD 00 .r v7 N 00 O V1 OD O a ao .� n n en n v r. 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't/f vY tJl-til `: ��'.rA rA �A�.�'�� y �6' 1 l� �.� _ ; , �Z � � y �{" ` aS�C �8 � �' 3?` � � +�+'� ��t '��+��. : '. si:.Cy b�A:fN T•,�. •i�fC: �t `+h+.-��. �..'. fl ".," �s,C3E,`^.��'� `�..,, N .�. � ,p �.`r: .'. m : � !f �'�� .'."2 � ��.N� -�. Q O�„„�. � �:� � � � )ti �� .�. . � yi � i' � . �^ U 4. .-I : : � EXHIBIT F (Guidetines and Criteria for Tax Abatement) CITY OF PARIS, TEXAS POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT I. Genera! 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 will give consideration, on a case-by-case basis, to providing tax abatement according to state law to the owners ofreal 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 Historica) 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. 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 individua] 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 ( l 1) Full-time Equivalent Jobs (352 hours divided by 32 hours per week equal 1 l). 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. 1) "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. 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 l00 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. ��. 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 ta�c abatement Reinvestment Zone as set forth in the Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312. �v. 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 ofthe City. Change in appraised value does not yualify 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 l 00% 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 requires a minimum investment of $200,000, for a 100% tax exemption for three (3) years. 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, ]essor 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 ] 00%) of all or a portion of the eligible property within the Authorized Facility. Ahatement 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 amacting other taxable improvements into the City; 4) The nature of the proposed project and its overal] 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 of the 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 or 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 shall be payable as follows: 1) The Base Year of eligible property 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. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the Real and Personal Property comprising the Reinvestment Zone. Each year, the Employer, 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 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 investrnent 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 (]) 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: d) Any project with a capital investment of more than ten million dollars ($10,000,000), accompanied by a newly created minimum annual payrol] 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 tota] abatement not to exceed 100%. VI. Tax Abatement for Personal Property; Creation of Jobs: The City recognizes a signi�cant 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. c) Criteria for qualification 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 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%. VII. Tax Abatement far 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 na 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 3obs 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. Appiication. a) Eligibility. Any present or potential owner of taxable property in the City may request tax abatement by filing a written reGuest 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 Property; 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 tax 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 ofthe hearing, and all 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. fl 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 shal] require the affirmative vote of three-fourths (3/4) of the members of the City Council. 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 shal] 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 ]imiting 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. 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 delinquent 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 terminated 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. 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 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. XV. Assignment. An agreement may be assigned to a new owner or lessee 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 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 is indebted to the City for ad valorem taxes or other obligations, or if any event of default under the agreement remains uncured. XVI. Eidministration, 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 shall include verifying that participants in tax abatement agreements are in full compliance with the terms of the agreement. 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. For a tax abatement application or additional information coatact: Paris Economic Development Corporation 1125 Bonham Street Paris, Texas 75460 903-784-6964 Fax 903-784-2503 Email parisedc@paristexasusa.com