2012-088 RES APPROVING AND AUTHORIZING TAX ABATEMENT AGREEMENT WITH ESSENT PRMC LP DBA PARIS REGIONAL MEDICAL CENTERRESOLUTION N0. 2012-088
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH
ESSENT PRMC L.P. d/b/a/ PARIS REGIONAL MEDICAL CENTER; 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 Essent PRMC L.P. d/b/a Paris Regional
Medical Center, a Limited Partnership, 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 October 8, 2012, to
allow interested persons to speak about the Enterprise Project and 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
meet 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.
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 8th day of October, 2012.
ATTEST:
. - — ,,
i -� �
j nice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McII , ity Attorney
\
THE STATE OF TEXAS )
)
COUNTY OF LAMAR )
TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement (the "Agreement") is entered into by and between
the CITY OF 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 ESSENT PRMC, L.P., a limited partnership (d/b/a Paris Regional
Medical Center), acting by and through its authorized officer whose signature appears
below (hereinafter referred to as "Owner").
WITNESSETH:
Recitals Regarding Northward Bound Proiect
WHEREAS, the City Council of the City of Paris did heretofore, on the 22nd day of
August, 2011, pass Ordinance No. 2011-035, (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 ESSENT PRMC, L.P. (d/b/a Paris
Regional Medical Center) to the Office of the Governor Economic Development and
Tourism through the Economic Development Bank for Designation as a qualified 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, the Enterprise Project described in the ORDINANCE and above, in
this Agreement (hereinafter called the "Northward Bound Project"), qualified as an
Enterprise Zone Project by verbal communication from the Office of the Governor of the
State of Texas (Economic Development & Tourism), made to the City of Paris, Texas, and
to the Owner, in January, 2012, which Enterprise Project covered the real property and
improvements in Paris, Lamar County, Texas, described in Exhibit A, attached hereto and
made a part hereof, as is shown in the U.S. Census Bureau website on Exhibit B, attached
hereto and made a part hereof for all purposes; and
WHEREAS, under the Texas Enterprise Zone Act (Texas 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 8 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�' day of
August, 2012, in Resolution No. 2012-072, pass and adopt appropriate Guidelines and
1X�1 •�, � '�� � /
Criteria governing tax abatement agreements to be entered into by the City as required by
the Property Redevelopment and Ta�c Abatement Act, as amended; and
WHEREAS, the City Council of the City of Pazis did find in the ORDINANCE that
the Owner meets the criteria for designation as an enterprise project under the Act on the
following grounds: a) that it is a"qualified business" under Section 2303.402 of the Act for
it is engaged in the active conduct of a trade or business at a qualified business site and at
least 25% of its new employees at the qualified business site will be residents of an
enterprise zone in this State, or are economically disadvantaged individuals, b) the Owner is
engaged in an "expansion, renovation, or new construction" to be completed within a
predetermined period of time not to exceed five years after August 21, 2011; and c) Paris
Regional Medical Center ("PRMC") is a wholly owned subsidiary of RegionalCare
Hospital Partners, Inc., for which separate books and records are kept; d) there has been and
will continue to be a high level of cooperation between public, private and neighborhood
entities within the jurisdiction of the City of Pazis, Texas; and e) the designation of Essent
PRMC, LP Northward Bound as an enterprise project will contribute sigmificantly to the
achievement of the plans of the City for development and revitalization of the area in which
the enterprise project will be located; and
WHEREAS, the Northward Bound Project is situated within a Reinvestment Zone
described or referred to in the ORDINANCE; and the contemplated use of the Northward
Bound Project, and the improvements to be installed therein in the amount of
$27,100,000.00, and the other terrns hereof are consistent with encouraging development of
said Reinvestrnent Zone in accordance with the purposes for which it was created and are
in compliance with the City's policy on ta�c abatement incentives and the ORDINANCE
creating such Reinvestment Zone adopted by the City and all applicable laws.
Recitals Regarding Essent PRMC South Camaus
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 reinvestrnent zone (the "Reinvestment Zone"); and pursuant to the 2010 U.S.
Census, the real property and improvements thereon known as the South Campus of the
Paris Regional Medical Center Hospital belonging to Owner (the "South Campus")
described in Eghibit C, attached hereto and made a part hereo�, located within the City of
Paris, in Lamar County, Texas, is included within an ENTERPRISE ZONE, as is shown in
the website of the U.S. Census Bureau in Exhibit D, attached hereto and made a part hereof
for all purposes; and
WHEREAS, the contemplated use of the improvements located and to be placed at
the South Campus at a cost to the Owner of at least $100,000.00 will enable the South
Campus to continue to be used as an operational and viable hospital and health caze facility
in the City of Paris, Lamar County, Texas, for its residents and for others; and this is
consistent with encouraging development of said Enterprise Zone in which the South
Campus is located in accordance with the purposes for which it was created and is in
compliance with the City's policy on t� abatement incentives and the ordinance creating
such Enterprise Zone adopted by the City of Paris, Texas, and all applicable laws; and
2
WHEREAS, the Owner, in connection with the hearing in which the ORDINANCE
was enacted by the City of Paris, Texas, on August 22, 2011, did request of the City an
abatement of t6e taxes to be assessed on the new improvements to be constructed by it
as a part of the Northward Bound Project and at the Sonth Campus; and
WHEREAS, this AGREEMENT is executed by the City and the Owner to evidence
in writing the abatement of City taxes upon the improvements herein described, with the
effective date of tlus AGREEMENT being the effective date of the ORDINANCE of
August 22, 2011, when the tax abatement herein described was authorized by the City of
Paris, Texas;
NOW, THEREFORE,
The Owner and fihe City do mutually contract and agree as follows:
I.
Term
1.1 The term of this Agreement shall begin on the 22°d da.y of August, 201 l, with
tax abatement granted herein beginning with the tax yeaz beginning January 1, 2013, and
expiring on December 31, 2022.
II.
The `�Property" - Area to be Improved
2.1 The Improvements (defined in paragraph III and IV, below) which are the
subject of this Agreement shall be located within the portions of the Northwazd Bound
Project and the South Campus, both being located in Paris, Lamar County, Texas, owned by
the Owner and described in Exhibit E(with respect to the Northward Bound Project) and in
Exhibit F(with respect to the South Campus), both of which exhibits are attached hereto (all
of which property is within the Reinvestrnent Zones and the Enterprise Zones referred to in
the recitals above). The Improvements will be at a cost equal to or in excess of
$27,200,000.00 in the aggregate for cost and installation of the building modifications,
machinery and equipment, and shall be substantially completed by December 31, 2012,
provided, however, 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, governmentaI or de facto governmental action,
unless caused by acts or omissions of Owner, fres, explosions, accidents, floods and labor
disputes or stnikes. T'he date of completion of the Improvements shall be reflected in the
Certificate of Completion issued by the City referred to above.
III.
The Northward Bound Improvements upon wfrich Taxes are to be Abated
3.1 The Owner's Northward Bound property consists of land, buildings, and
other structural improvements; and the improvements to be constructed there by Owner with
respect to which the taues to be assessed thereon aze to be abated, aze actually located as is
shown in the drawings attached hereto as Ezhibit E, and made a part hereof. The Owner
shall make the improvements specifically described in said Ea�hibit E, in the amount of
$27,100,000.00.
IV.
The South Campus Improvements upon which Taaes are to be Abated
4.1 The Owner's Sonth Campus property consists of land, buildings, and other
structural improvements; and the improvernents to be made there by Owner with respect to
which the taxes to be assessed thereon aze to be abated, are located in the South Campus area
as are described in Exhibit F attached hereto and made a part hereof. The Owner shall make
the improvements specifically described in said Eahibit F, in the amount of $ l 00,000.00.
V.
Consideration - Improvements
5.1 The Owner agrees and covenants that it will diligently and faithfully, in
a good and workmanlike manner, pursue the completion of the Improvements described in
Sections III and IV, above, and in the Exhibits referred to in said Sections which are
attached hereto (hereinafter collectively described as 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 real properties and the Improvements thereon,
including the specific units of new property and equipment as identified herein, as acute
care hospitals serving persons seeking hospitalization services and care.
5.2 All of the Improvements will be described in the City's Certificate of
Completion prepared after the completion and installation of the above described land
and building modifications and improvements, personal property, computers, medical and
other equipment and machinery. The detailed description of the Improvements which are
the subject of this Tax Abatement Agreemez�t will be furnished to and filed with the Chief
Appraiser of the Lamar County Appraisal District. Such Certificate shall be duly
executed by the Mayor of the City of Paris, Texas, in the fozm attached hereto as Exhibit
G.
4
VI.
Consideration - Jobs
6.1 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 Ownez herein, to
improve 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 Northward Bound Project and the South Campus of the
O�wner 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
structures and equipment, such as that to be constructed by Owner herein as a part of the
Northward Bound Project and the South Campus), such existing employer may be
eligible for ta7c abatement with respect to such improvements to its real properly 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.
6.2 The Owner agrees to retain sufficient employment levels to efficiently
operate and support its Northward Bound and South Campus hospitals during the term of
this Tax Abatement Agreement.
VII.
Default
7.1 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 thc amount required herein; or (b) Owner allows its ad
valorem ta�ces 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 ihe Owner has not cured such default witliin 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 reqwirements 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 abaternent, 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 Redevelopnnent 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 darnages in the event of default and
termination would be speculative and difficult to determine.
VIII.
Taz Abatement
8.1 Subject to the terms and con,ditions of this AGREEMENT, and subject to
the rights and holdez�s 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 ta�ces assessed
upon the increased value of the Improvements made by Owner to the Property described in
Sections III and IV of this AGREEMENT, over the value stated below as of January 1, 2012,
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 ta�ces finally determined to be due as a result of
any such protest or contest. For the purposes of this AGREEMENT, the initial value of the
existing real property and improvements (not subject to abatement) shall be deemed to be
the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1,
2012, such amount being $21,200,361, and an additional $13,610,470, as of such date for
tangible personal property, as is more specifically shown in Exhibit H. attached hereto.
The current abatement which is the subject of this AGREEMENT shall extend for a period
of ten (10) years beginning January 1, 2013.
8.2 The abatement granted herein shall be subject to and govemed by the Guidelines
and Criteria for Taac Abatements, a copy of which is attached hereto as Exhibit I, and Owner
shall comply with the requirements of Exhibit I in the performance of this AGREEMENT, save
and except that, in the event of a conflict betwe� the requiremen�s of Fxhibit I and this
AGREE1VIh'NT, this AGREEMENI' shall controI.
83 Owner covenants and agrees that subsequent to the date of this AGREENiENT,
any application by Owner for a new t� abatement for equipment or real property located within
the properties described herein 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.
II�.
No Conflict of Interest
9.1 The Owner represents and warrants that the properties described herein do 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, oz having
responsibility for the approval of, this AGREEMENI'.
�
X.
Conditions
10.1 The terms and conditions of this AGREEMENT are binding upon and enforceable
against the parties hereto the successors and assigns of all parties hereto.
10.2 It is understood and agreed between the parties that the Owner, in perfornung its
obligations hereunder, is acting independently, and the City assumes no responsibility or liability
in connection therewith to third parties; and Owner agrees to ind�mnify and hold hamiless the City
therefrom. It is further understood and agreed aznong the parties that the City, in perforn�►ing its
obligations hereunder, is acting independently, and the Owner assumes no responsibility or
liability in connection therewith to third parties and, to the extent pernussible by law, the City
agrees to indemnify and hold harmless the Owner therefrom.
XI.
Compliance Provisions
11.1 The Owner agrees that the City, its agents and employees, sha11 have the
reasonable right of access to the properties and records of Owner and conceming the Owner's
investment in the Impmvements for the pucpose of conducting audits of �e projects' Improvements and
projects' costs. Any such audits shall be made only after giving the Owner notice at least fourteen
(14) days of norice in writing in advance and will be conducted in such a manner as to not
unreasonably interfere with the operation of the facilities. Upon request, the Owner will
provide the City with a detailed Asset Report with an itemized list of assets placed into
service from and after August 22, ZO11 to the date of completion of all Improvements
described or referred to herein. 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.
11.2 'The Owner further agrees that the City, its agents and employees, shall have
reasonable right of access to the real properties of Owner to inspect the Improvements in
order to insure that the construction of the Improvements are in accordance with tkus
AGREEMENT and all applicable state and local laws and regulations or valid waiver
thereof. After completion of the Improvemez�ts, the City shall have the continuing right to
inspect the Owner's properties to insure that they are thereaf�er 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 facilities. Representatives of the City inspecting the properties and
Improvements shall be accompanied by one {1) or more representatives of the Owner and shall
sign an AGREEMENT promising to maintain the confidentiality oi any information they
obtain in connection therewith except for the purposes of assessing and collecting ad valorem
taxes and verifying or enforcing comgliance with this AGREEMENT. Said representative
shall also be required to observe any facility rule and regulation applicable to either property.
Nothing herein shall be construed as limiting the City's ability to perform inspections or to
enter the properties of Owner, which are the subject of this AGREEMENT.
7
XII.
Initial and Annual Reporting
i2.1 T�e Owner further agrees that it will, within thirty (30) days of completion
of the Improvements, provide City with a swom 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 Lannar County Appraisal District showing the
market value of each real property and the improvements thereon 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.
12.2 The Owner further agrees that it will provide City with an annual, swom
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.
12.3 In addition to the annual report requized under Section 12.2 hereof, the
Owner further agrees that it wilI 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 fling of the same with the Texas Workforce Commission. The Owner will
provide an affidavit signed by an authorized Officer of the Owner certifying that the
information provided in the summary page is a true and valid report filed with the Texas
Workforce Commission.
XIII.
Authority to Contract
13.1. This AGREEMENT was authorized by resolution of the City Council at its
regulazly scheduled meeting on the 8th day of October, 2012, authorizing the Mayor to
execute the AGREEMENT on behalf of the City.
8
13.2 This AGREEMENT was entered into by Owner pursuant to the authority
granted to the authorized official whose signature appears betow.
13 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.
xiv.
Legal
14.1 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.
14.2 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.
14.3 Arry 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
Essent PRMC, L.P.
d/b/a Paris Regional Medical Center
865 Deshong (Northward Bound Project)
820 Clarksville St. (South Campus)
Paris, Texas 75460
With a Conv To•
Leo Siena, CPA
10,000 N. Central Expressway
Suite 400
Dallas, Texas 75231
City
City Manager
City of Paris
P.O. Box 9037
Paris, Texas 75461-9037
City Clerk
City of Paris, Texas
P.O. Box 9037
Paris, Texas 75461-9037
14.4 Zf any term or provision of this AGREEMENT shall be declazed
unconstitutional or void by any court of competent jurisdiction, the constitutionality and
validity of the remainder of said AGREEMENT shall not be ai�ected thereby, and to this end
the terms and provi�sions of said AGREEMENT aze declared to be severable.
9
14.5 This AGREEMENT sets forth the entire understanding between the parties, and
any other understandings or agreeznents 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
govemed 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.
14.6 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 Tex.as for any Federat Court action.
WITNESS our hands this S`� day of October, 2012, but this AGREEMENT is
effective from and after August 22, 2011, as first authorized by the ORDINANCE.
ATTEST:
BY=
CITY OF PARIS, TEXAS
A. J. Hashmi, M.D., Mayor
APPROVED AS TO FORM:
Janis Ellis, City Clerk Kent Mcilyar, City Attorney
ATTEST:
Secretary
ESSENT PRMC, L.P.
(d/b/a Paris Regional Medical Center)
By:
10
, President
LIST OF EXHIBITS: (Attached to this AGREEMENT)
A= Legat description of Northward Bound real estaie.
B= Enterprise Zone in which Northward Bound Project is located.
C= Legal description of South Campus real estate.
D= Enterprise Zone in which South Campus is located.
E= Detailed description of Northward Bound Improvements to be constructed and
Drawings showing location oi Northward Bound improvements on which taxes are to
be abated under this Agreement.
F= Listing describing location of South Campus improvements on which taxes are to
be abated under this Agreement.
G= City's Certificate of Completion.
H= Tax rolls of properties of Owner as of September 30, 2010.
T= City of Paaris, Texas Guidetines and Criteria for Tax Abatements.
11
EXHIBIT A
LEGAL DESCRIPTION
Paris Regional Medical Center - NORTH Hospital: 865 DeShong Dr., Paris, TX. 75460
City of Paris, Block 306, Lot 1 C, Acres 33.27, and
City of Paris, Block 306, Lot 1 E, Acres 7.8127, and
Equipment, computers, furniture and fixtures and inventory.
EXHIBIT B
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�`.?. ?�''Yil.d.er' �. �
�
Census Map of City of Paris, TX. (Year 2011)
Q Hos�itaix
865 Deshong Dr., Paris, TX. 7�460
Block Group 1, Census Tract 5, Lamar Count��, Texas
Legend:
Boundaries
� sia�e
� 'si Councy
Q•it Censvs Trecl
r� 't t Block Grwp
Features
Ma�a Road
SveamNJa�erbody � •�
HosDila�
Your Selections
� Your Sekcuons
Ilems in pr::; le�d a�e not visrble at tbis zcom levei
e
��
�
1 of 1 09125l2012
Texas Governor's OfFice, Economic Development Bank
Texas Enterprise Zones by Census Tract and Block Group (2010 Census)
Lamar County, Texas
Census Block Total Pop. Poverty
County Tract Group TotalPop. In Poverty Rate
Lamar 700 1 1583 505 31.901%
Lamar 800 1 1066 431 40.4321
Lamar 800 4 1237 404 32.660%
Lamar 1000 3 1545 339 21.942%
Lamar 600 3 1073 461 42.964%
Lamar 500 1 556 283 50.899% PRMC-North
Lamar 1000 2 1183 263 22.232�
Lamar S00 4 1449 595 41.063%
Lamar 800 3 327 91 27_829%
Lamar 500 2 812 305 37.562%
Lamar 500 3 1089 411 37.741°�
Lamar 600 1 458 157 34.279%
Lamar 100D 1 1036 282 27.220% PRMC-South
Lamar 200 2 763 224 29.358%
Lamar 401 1 886 203 22.912%
Lamar 600 2 1054 367 34.820Y
Lamar 101 1 1120 257 22.946%
Lamar 101 2 1813 418 23.056°�
EXHIBIT C
LEGAL DESCRIPTION
Paris Re�ional Medical Center - SOUTH Hosvital: 820 Clarksville St., Paris, TX. 75460
City of Paris, Block 110, Lot 5, and
City of Paris, Block 110, Lot 3, and
Equipment, computers, furniture and fixtures and inventory.
EXHIBIT D
,
� . �: �� � �.� �Y nder � �
�
Census n9ap of Cit�• of Paris, TX. (Year 2011)
� Hosprtals
820 Clarks��ille 5t., Paris, Ta. 754G0
Block Group 1, Census Tract l0, Lamar Counh�, Texas
Legend:
Boundaries
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Texas Govemor's Office, Economic Deveiopment Bank
Te�s Enterprise Zones by Census 7ract and Block Group (2010 Census)
Lamar County, Texas
Census Block Total Pop. Poverty
County Tract Group Total Pop. !n Poverty Rate
Lamar 700 1 1583 505 31.901%
Lamar 800 1 1066 431 40.432%
_ __ ___ _ _ _ . -----._ _
Lamar 800 4 1237 404 32.660%'
Lamar 1000 3 1545 339 21.942%
lamar 600. 3 1073 461 42.964%
Lamar 500 1 556 283 50.899% PRMC-North
Lamar 100� 2 1183 263 22.232%
_ _ _ . _ _ _._._...--- ..__._ . _.._.___
Lamar 500 4 1449 595 41.063%
Lamar 800 3 327 91 z7.829%
lamar 500 2 812 305 37.562%
_ _ . --- _ .. ---._... . . .. .
Lamar S00 3 1089 411' 37.74196
. _.. . . ....�___... _._...__ .. ...._.__
Lamar 600 1 458 157 34.279%
Lamar 1000 1 1036 282 27.220% PRMC-South
Lamar 200 2 763 224 29.358%
lamar 401 1 886 203 22.912%
_ . . -- . • --- _ .. . .
Lamar 600 2 1054 367� 34.820�
Lamar 101 1, 1120 257; 22.946%
Lamar 101 2 1813 418, 23.056%
EXHIBIT E
ESSENT PRMC, L.P.
dba Paris Regional Medical Center
Northward Bound Project Description-NORTH Campus
PRMC is committed to contributing to the health of the Paris connmunity by maintaining its
position as the leading provider of healthcare services for the region. In order to do that, PRMC
must continually invest and upgrade its equipment and facilities. Listed below is a detailed
description of the Northward Bound improvements to the NORTH campus:
1) New construction and renovations to North Campus:
a. Renovate Admitting, Financial Counselors Area
b. Renovate Main Lobby Waiting
c. Create a Pre Admit Testing Area for Patients
d. Relocate the Cardio Diagnostic Area to the First Floor
e. Relocate �utpatient PT/OT Speech Area to the First Floor
f. Relocate Imaging to the First Floor
g. Create an Emergency Triage and Fast Track Exam Area
h. Provide Connector from Women's Lobby to Main Hospital
i. Provide a New Surgery, PACU, Prep/Holding Unit
j. Renovate Central Sterile Supply Area
k. Renovate for CCU Waiting and Support Spaces
I. Renovate Pharmacy and Provide an IV 797 Room
m. Renovate Vacant Patient Room Floor Finishes
n. Ground breaking ceremony held on August 4, 20 ] 1.
2) Additional renovations to North Campus by RegionalCare Hospital Partners:
a. Renovate Area for New CVICU Unit.
b. Provide New Oversized Patient Elevator.
c. Renovate Kitchen and Dining Area.
d. Provide Physician Lounge/Dictation/Chart.
e. Relocate Endo Suite to New Tower.
f. Renovate Patient Room Floor Finishes.
g. Relocate Administration Suite.
h. Provide New Nurse Call System.
i. Provide New Code Blue System.
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EXHIBIT F
ESSENT PRMC, L.P.
dba Paris Regional Medical Center
Northward Bound Project Description-SOUTH Campus
PRMC is committed to contributing to the health of the Paris community by maintaining its
position as the leading provider of healthcare services for the region. In order to do that, PRMC
must continually invest and upgrade its equipment and facilities. Listed below is a detailed
description of the Northward Bound improvements io the SOUTH campus:
l) Renovations to South Campus:
a. Endoscopy has moved from the Sth floor to the newly renovated 4th floor.
b. Endoscopy waiting area has been remodeled.
c. Geropsych has moved to the South Campus.
d. Construction is complete on Sth floor to accommodate the relocation of
Geropsych.
2) Additional renovations to South Campus by RegionalCare Hospital Partners:
a. Relocate Rehab Beds and Therapy Area.
b. Relocate LTAC Unit System to 6`h floor {Dubuis Health System).
EXHIBIT G
CERTIFICATE OF COMPLETION
STATE OF TEXAS
COUNTY OF LAMAR
CITY OF PARIS
The Ciry of Paris, Texas, has included the Property described in E�chibit A attached hereto into two
Enterprise Zones, and has executed and delivered a Tax Abatement Agreement with ESSENT PRMC,
L. P., a limited partnership, for certain improvements a��d vther equipment (the "Improvements") to be
installed at the Partnership's two hospita] faciiities located in Paris, Lamar County, Texas.
ESSENT PRMC, L. P., has complied with all ofthe terms ofthe Ta�c Abatement Agreement, and
the Ciry 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 TI �REFORE, the City of Paris authorizes that the Property described in E�chibit 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 which the property was last deternuned as of September 30,
2010, as recited in the Ta�c Abatement Agreement, for a duration of ten (10) years, with the tax abatement
for the Improvements beginnin� January 1, 2013.
APPROVED this day of , 20^
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
City Attorney
EXHIBIT H
PARIS REGIONAL MEDICAL CENTER'S APPRAISED VALUES
Property ID # and Description Local ID Descriptlon Assessed Value 01/01/2012
LAMAR COUNTY
401630
Essent PRMC LP 820 Clarksville St. Real Property $ 187,470.00
City of Paris, Block 306 Hospitaf Improvemenis
Lot 1C, Part of 2nd Floor Only
Paris. TX 75460
119288
Essent PRMC LP 820 Clarksville St. Real Property $ 337,150.00
Block 110. Lot 5 Hospital Improvements
Paris TX 75460
15720-0 7 5500-11000-0050
Essent PRMC LP 820 Clarksville St. Real Property $ 7,131,100.00
City of Paris, Block 110 Hospital Improvemenls
Lot 5, 820 Clarksv(Ile
Paris, TX 75460
119296
Essent PRMC LP 865 DeShong Dc Real Properiy $ 2,460,640.00
City of Paris, Block 306 Hospital Improvements
Lot 1C
Deshong Drive
Paris TX 75460
22290
Essent PRMG LP 865 DeShong Dr. Real Property $ 11,084,001.00
block 306 Lot 1C Hospital Improvements
Deshong Dfire
Paris, TX 75460
TOTAL REAL PROPERTY IMPV. $ 21,200,361.00
PARIS REGIONAL MEDICAL CENTER'S APPRAISED VALUES
Property ID # and Description local �D Description Assessed Value 01/01/2012
LAMAR COUNTY
40401b
Tangible Personal
PropeRy: equiment,
compulers, F&F,
Essent PRMC LP 865 DeShong Dr, inventory $ 3,208,310.00
Personal Property at 865 Deshong
Paris TX 75460
403982
Tangible Personal
Property: equiment,
computers, F&F,
Essent PRMC LP 820 Clarksville St. inventory $ 10,402,160.00
Personal Properiy at 820 Clarksville
Paris TX 75460
TOTAL TANGIBLE PERS�NAL PROP. $ 13,610,470.00
EXHIBIT I
CITY OF PARIS, 'TEXAS
POLICY STATEMENT
CRITERIA AND GUIDELINES
FOR 'TAX ABATEMENT
I. General Purpose and Objectives.
The City of Paris, Texas (herein called the "City") is committed to enhancing the
competitiveness and the expansion potentia) ofthe City's manufacturing indvstry; to attraciing and
encouraging new manufacturing industry and investmeni; to improving the City and its
infrastructure which attracts and supports development; and, to expanding the tax base,
employment opportunities, and the overall quality of life for its citizenry. Therefore, ihe 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 lacating 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 tau abatement application.
However, the City is under no obligation to provide tax abatement to any applicazat.
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 Tovrist
Entertainment Facility or Other Basic Industry (a11 of which terms are defined below); or if the
facility is a Historic Property defined in Section IV (b) below wiihin a City of Paris Historical
District.
d) "Base Year Value" means the assessed value of eligible property as of January l,
preceding the date of execution of the agreernent plus the agreed npon value of eiigible
property improvements made after January l, but before the execution ofthe agreement. The
Base Year Va1ue 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 ]obs 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) "Ful!-time Equivalent )obs" 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 (]6) part-time jobs made available by one Emp)oyer where al]
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 (1 I) Full-time
Equivalent )obs (352 hours divided by 32 hours per week equal 1 l). Full-time Equivalent Jobs
do noi require the employee to receive benefits from the Employer.
i) "Manufacturing fiacility" means buildings and structures, including fixed machinery
and equipment, the purpose of which is or will be the manufacture of iangible goods or materials
or the processing of such goods or materials by physical or chemical change. Facilities
primarily engaged in assembling component parts ofmanufactured 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 resuJt from the construction, alteration or
installation of buildings, structures, fixed machinery or equipment, but shail 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 ihe production ofproducts or
services which result in the creation ofnew Jobs and bring new weaIth into the City.
I) "Personal Property" means machinery, equipment, tools, shelving or materials eligible
under applicabJe 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 leasi 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 amusemendentertainment
through ihe 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 pattems and attract major investments that wi11 contribute to the development of the
area through the use of tax abatement for specified improvements.
r) "Research Facility" means buiJdings 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
wil) 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.
�11. 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 Bc Tax
Abatement Act, as amended (Texas Tax Code Sec. 3] 2.401 (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.
Iv. Tax Abatemept 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 ta�cation 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 Rea] Property in each year covered by the agreement other than Personal
Property that was located on the Rea] 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 properry of the owner already
on the tax role with the jurisdiction of the City. Change in appraised vatue 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 Pazis Economic
Development Corporation, in conjunction with the City Manager or designee to the Tax
Abatement Committee_ ln determining where and how tax abatement will be uiilized, the T�
Abatemeni Committee wil] examine the potential return on the public's investment. Return on
public investment will be measured in ternns of(i) Jobs created, (ii)lobs 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) 1f the Property involved is a Historic Property. In the City Historic Districts there are
certain commercia] and residentia] 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
residentiai property and $10,000 for commercia) property. New residential consVuction requires
a minimum investment of $100,000 to be considered for a three (3) year 200% 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 e]igible Real ar�d Persona] Property improvemenis, subject to such
limitations as the City may rcquire. 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) filigible 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 ]ocated 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
demonsirate 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 abatemeni granted under any
agreement may not exceed that permiited by applicable state law. The amount of the
abaiement 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 additionai value of
eligible property improvements made pursuant to and lisied 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 eIigible for abatement shall be the vatue 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 lirnited to:
1) The dollar amaunt ofthe 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 wi11 have on attracting other taxable
improvements into the City;
4) The nature of the proposed project and its overall effect an the City;
5) The proposed project's effect on the safery, health, and morals of the City's
residents;
6) Wt�ether 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 relevani 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. ln 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 lhe effect of inerely
transferring existing employment from one part of the City to another
without demonstration of increased fi�ture investment (Dollars or 7obs) or
unusual circumstances whereby without such a move emplQyment is Iikely 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 ierm of the agreement, taxes shall be payable as follows:
]) The Base Year of eligible property as determined each year by ihe Lamar
County Appraisai District shall be fully taxable; and
2) The additional value of eligible property above the Base Year Value sha11 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 Rea] 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 Properiy 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 territoria2 jurisdiction based
on the following:
a) To be etigible for any tax abatement, there must be a minimum capital investrnent in the
Authorized �acility of $250,000 and at least ten (10) new Jobs added to ihe Employer's ]abor
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 ihe tax rolls.
c) Criteria for qualification for tax abatement are as follows:
d) Any project with a capital investment ofmore than ien million doJlars ($10,000,000),
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 wi11 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 l 0 to 20% abatement may be availabJe 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 t�e abatement of personal properry 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,OOU 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); thereafler, there wil] be a 20% reduction in the original amount abaied
beginning with year four (4) and a similar reduction of 20% in each of the next three years until
] 00% of the Real Property valuation is added to the tax rolls.
Criteria for qualification for tax abatement are as foliows:
' CapitalInvestment
$250.000-$350.000
$350,OO1-$500,000
$500,00]-$750,000
$750,001-$1,000,000
$1,000, OO l -$1,250,000
$1,250,001-$1,500,000
$1,500,001-$1,750,000
$1.750.001-$2,000.000
Min. Annua! New1y Created
avroll Created Jobs
10]-125
126-] 50
151-175
Possible Abatement
flst 3 Years Onlvl
50%
60%
90%
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 ] 0 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 recogni2es 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 pIans to improve such Property by constructing
new improvements on its Rea] Property and/or adding new Personal Properly 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 invo3ving existing
Employers, the criteria for tax abatement for improvernents 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 Annua) 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 (excepi that no new Jobs or New)y Created Minimum Annual Payroll are required). In
ihis regard, however, the City encourages existing Employers to retain as many Jobs and as
much existing Annual Payroll as is economically feasible for the eaisting 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 Corporaiion.
b) Form. The application shall consist of a completed application form accompanied by
the following items: .
]} 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 detai)ed descriptive list of the improvements for which abatement is
requested;
3) A list ofthe kind, number, and location of ali proposed improvements ofthe
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 ihe proposed Reinvestment Zone that
shows all roadways within 200 feet of the Reinvestment Zone and a11 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 desirabJe by the City.
c) Review. Once the application has been received, the information submitted wiU be
reviewed by the Tax Abatement Committee for completeness and accuracy. The Commiftee will
then distribute the application to the appropriate departrnent 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) Pubiic 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 ta�c 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 all
other procedural requirements of Chapter 312 of the Texas Ta�c Code have been satisfied.
e) Findings. In order to enter into an agreement, the City musf find that the terms of the
proposed agreement comply with these Guidelines and Criteria, that there wi11 be no
substantial adverse affect on the provision of City services or tax base, and that the planned use of
the Property witl 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.
� 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
abatemeni exceed the period authorized by applicable state law. Such requesi 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 mernbers of the City
Council.
IX. Agreement.
After approval, the City shal] formally pass an order or resolution and authorize the
executian 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 investmeni and average number of jobs involved during the term of the
agreement;
e) The proposed use of the Authorued Facility, nature of construction, time schedule,
plat, property description, and improvement list, as provided in the application;
� 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 atlow for ihe 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 ofthe agreement;
3) Contractuat obligations in the event of default, violation of terms or conditions,
delinquent ta�ces, 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 cance] 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 ierms and conditions of its agreement, the City shall notify the company or
individual in writing at the address siated 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 �r 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 proiest 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 agreemeni 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 grani a
specified application or request for tax abatement.
XTII. 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 afler the giving ofat 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 sha11 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.
Ai any time before the expiration of an agreernent 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. Assignmeat.
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 ta an entity that contempiates the same improvements or repairs to the Property, except
to the extent such improvements or repairs have been completed. No assignment shal] be
approved if the assignor or ihe 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. Administration, Contract Review and Monitoring, and Reporting.
a) The Paris Economic Development Corporation shal] 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 pariicipants 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 perfonnance
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 ihe activities of tax
abatement participants.
d) The Ciry 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 affrmative vote ofthree-fourths (3/4) ofthe members of the
City Council.
For a fax abatement application or additional information contact:
Paris Economic Development Corporation ] l25 Bonham Street
Paris, Texas 75460
903-784-b964
Fax 903-784-2503
Email parisedc@paristexasusa.com