2012-090 RES APPROVING/AUTHORIZING TAX ABATEMENT AGREEMENT WITH T & K MACHINE INCRESOLUTION N0. 2012-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH T
& K MACHINE, INC.; MAKING OTHER FINDINGS AIVD 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 T&K Machine, Inc., 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 November 12, 2012, to
allow interested persons to be heard regarding any matter related to the 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 "q„
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 welfare.
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 12th day of Nove�nber, 20�2.
ATTEST:
/ � �
L Q
j nice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, ' ttorney
A.J. Hash�ni, M ., Mayor
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THE STATE OF TEXAS )
)
COUNTY OF LAMAR )
TAX ABATEMENT AGREEMENT
This agreement is entered into by and between the CITY OF PARIS, PARIS, TEXAS,
a municipal corporation, situated in Lamar County, Texas, acting by and through its authorized
officer whose signature appears below (hereinafter called "CITY"), and T& K MACHINE,
INC., a Texas 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, Texas, did heretofore, on the 13th day
of August, 2012, in Resolution No. 2012-072 ,(1) elect to be eligible to participate in tax
abatement agreements in order to maintain and enhance the commercial and industrial economic
and employment base of the Paris area for the long term interest and benefit of the City and its
citizens; and (2) 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, under the Texas Enterprise Zone Act (Government Code Chapter 2303),
the designation of an area as an Enterprise Zone also constitutes designation of the area as a
reinvestment zone; and pursuant to the 2010 United States Government Census, the
IMPROVEMENTS which are the subject of this AGREEMENT situated upon the Land
(hereinafter defined) within City of Paris, Texas, are included within an ENTERPRISE ZONE,
as is shown in the print-out of such ENTERPRISE ZONE from the Office of the Governor of the
State of Texas on its website, as shown in Exhibit A, attached hereto and made a part hereof for
all purposes; and
WHEREAS, the use of the IMPROVEMENTS, the addition by the OWNER of
additional employees as is herein described, and the other terms hereof are consistent with
encouraging development of said ENTERPRISE ZONE in accordance with the purposes for
which it was created and are in compliance with the CITY's policy on tax abatement incentives
and the ordinance creating such ENTERPRISE ZONE adopted by the CITY and all applicable
laws; and
WHEREAS, the City of Paris, Texas, is on this date entering into this Tax Abatement
Agreement with the OWNER to abate the taxes assessed by the City of Paris over a period of
seven (7) years, commencing January l, 2013, and ending December 31, 2019, under the
provisions of the CITY's Guidelines and Criteria for Tax Abatements pertaining to the
IMPROVEMENTS to be made to the OWNER's existing plant located at 2220 West Park Street
in Paris, Lamar County, Texas;
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NOW, THEREFORE,
The Parties hereto do mutually contract and agree as follows:
I.
Term
The effective date of this AGREEMENT is the 12�' day of November, 2012, with tax
abatement beginning with the tax year commencing January 1, 2013, and expiring on December
31, 2019, for a total tax abatement term of seven (7) years, as is hereinafter described in an
Exhibit attached to this AGREEMENT, which abatement term complies with the Guidelines and
Criteria for Tax Abatements in effect in the CITY.
II.
Area to be Improved
TBEI, L.P. a Texas limited partnership ("Taylor") is the owner of the real property (the
"Land") upon which the IMPROVEMENTS are situated. Taylor, as landlord, has leased the
land under the provisions of a long-term lease of 5 years (such lease terminating in the year,
2017), to T& K MACHINE, INC., as tenant (defined above as the OWNER for purposes of
convenience in documenting this AGREEMENT). The Land is described in Exhibit B,
attached hereto and made a part hereof for all purposes. Under the terms of the lease OWNER
is and has been in possession of the Land and OWNS all buildings and other improvements on
the Land, and will continue to do so during and exceeding the term of this AGREEMENT,
unless otherwise agreed to by all parties. OWNER is the party conducting the business on such
Land.
The PROJECT which is the subject of this AGREEMENT will consist of the OWNER
constructing one additional building upon the Land, installing some of the new
IMPROVEMENTS within said additional building and adding additional employees to its
workforce in Paris, Lamar County, Texas, extending over a period of FIVE (5) YEARS,
commencing on the date of this AGREEMENT. The IMPROVEMENTS will be located within
the first additional building to be constructed at the location shown on the drawing attached
hereto as Exhibit C. OWNER will initially construct one 5,000 square foot additional building
at its existing facility on the Land at a cost of $160,000.00 to house the production of precision
machined parts to be supplied to the aerospace industry. OWNER'S existing facility at the time
of execution of this AGREEMENT consists of a 27,000 square foot group of buildings
composed of 15,000 square feet of production space and 12,000 square feet of office and
support space. OWNER will over the first five (5) years of the term of this AGREEMENT
purchase and install eight (8) new machining centers at a total cost of $1,400,000.00, which will
be placed within the additional 5,000 square foot building to be constructed. A possible
additional seven (7) machining centers may later be purchased and placed within a
contemplated second additional building not included within this tax abatement, to be
constructed on the Land. In addition, during the initial 5-year term of this AGREEMENT,
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OWNER contemplates hiring twenty-two (22) new personnel as full-time employees of
OWNER to work at OWNER'S facility in Paris, Texas. The additional building of 5,000 square
feet and the 8 new machining centers which are the subject of this Abatement Agreement shall
be called the "IMPROVEMENTS".
III.
Improvements
3.1 The construction and installation of the IMPROVEMENTS will require
engineering and design work, procurement of equipment, infrastructure and utilities
modifications and electrical and mechanical installations on the Land. The IMPROVEMENTS
are being made to enable the OWNER to increase its capability to manufacture precision
machined parts for the aerospace industry. The IMPROVEMENTS are mare specifically
described as follows, and are to be located as is shown in Exhibit C attached hereto:
A. To the Land, building modifications to add 5,000 new square feet of building
space to house the new machining centers and employees.
B. New machining centers to be placed within the new building described as follows:
1) YCM NSV-156A 3 axis CNC machining center — Cost: $175,000.00.
2) YCM NSV-156A 3 axis CNC machining center— Cost: $175,000.00.
3) YCM NSV-156A 3 axis CNC machining center — Cost: $175,000.00.
4) YCM NSV-156A 3 axis CNC machining center — Cost: $175,000.00.
5) YCM NSV-156A 3 axis CNC machining center — Cost: $175,000.00.
6) YCM NSV-156A 3 axis CNC machining center — Cost: $175,000.00.
7) YCM NTV-156A 3 axis CNC machining center — Cost: $175,000.00.
8) YCM NTV-156A 3 axis CNC machining center — Cost: $175,000.00.
The IMPROVEMENTS will be described in the CITY'S Certificate of Completion prepared
after the completion and installation of the above described building modifications and
improvements, personal property, machinery and equipment. The description shall be furnished
to and filed with the Chief Appraiser of the Lamar County Appraisal District. Said Certificate
shall be duly executed by the Mayor of the City of Paris in the form attached hereto as Exhibit
D. The IMPROVEMENTS will be at a cost equal to or in excess of $1,560,000.00 to OWNER,
and shall be substantially completed over the five (5) year term as shown in the tax abatement
schedule attached hereto as Exhibit E, and made a part hereof for all purposes; provided, that
OWNER shall have such additional time to complete the IMPROVEMENTS as may be required
in the event of "force majeure" if OWNER is diligently and faithfully pursuing completion of the
installation of the IMPROVEMENTS. For this purpose, "force majeure" shall mean any
contingency or cause beyond the reasonable control of OWNER including, without limitation,
acts of God, or the public enemy, any natural disaster, war, riot, civil commotion, insurrection,
governmental or de facto governmental action, unless caused by acts or omissions of OWNER,
fires, explosions, accidents, floods, and labor disputes or strikes. The date of completion of the
IMPROVEMENTS shall be reflected in the Certificate of Completion issued by the City of
Paris, Texas, referred to above.
IV.
Consideration
(Improvements)
4.1 The OWNER agrees and covenants that it will diligently and faithfully, in a good and
workmanlike manner, pursue the completion of the IMPROVEMENTS. As a good and valuable
consideration for this AGREEMENT, OWNER further covenants and agrees that all construction
of the IMPROVEMENTS will be in accordance with all applicable state and local laws, codes
and regulations or will procure a valid waiver thereof. In further consideration, OWNER shall
thereafter, from the date a Certificate of Completion is issued, or that the IMPROVEMENTS are
completed as agreed, until the expiration of this AGREEMENT, continuously operate and
maintain the PROPERTY, including the specific units of new machinery and equipment as
identified herein, as a food production plant.
V.
Consideration
(Jobs)
5.1 OWNER is adding twenty-two (22) new full-time jobs to its employment base
over the first five (5) years of the term of this tax abatement, and may hire more employees as
OWNER'S customer demands require. OWNER currently employs sixty-five (65) persons at an
annual payroll of $2,542,000.00.
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.
The City has provided in its Guidelines and Criteria for Tax Abatements, for tax abatement for
the benefit of its existing employers, such as the OWNER herein, to im rove their respective
businesses and industries, as well as their profitability, even though no new jobs are created as
a result thereof. The Guidelines and Criteria provide substantially as follows in this regard: If
an existing Employer owns or leases an Authorized Facility (such as the PROPERTY of the
OWNER herein), and it has plans to improve such property by constructing new
improvements on its real property or to add new personal property (which includes equipment,
such as that to be constructed by OWNER herein within the PROPERTY), such existing
employer may be eligible for tax abatement with respect to such improvements to its real
property or its new personal property even though no new jobs or newly created minimum
annual payroll are created. In such cases, however, the Owner is encouraged to retain as many
jobs and as much existing annual payroll as is economically feasible for the existing employer
to do and remain competitive in its industry.
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VI.
Default
6.1 In the event that (a)(1) the IMPROVEMENTS for which an abatement has been
granted are not completed in accordance with this AGREEMENT, (2) the expenditure for the
IMPROVEMENTS does not meet the amount required herein, or (3) OWNER does not hire at
least twenty-two (22) new employees over the first five (5) years of the term of this
AGREEMENT, as is represented herein; or (b) OWNER allows its ad valorem taxes owed to
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.
If 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 312205
(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.
6.2 Notwithstanding the foregoing provisions of Section 6.1 above, the parties hereto
understand that compliance with Section 6.1(a) (1), (2) and (3), above is to a large degree
dependent upon the demands for parts such as are manufactured by OWNER, by the aerospace
industry. At the time of signing this AGREEMENT such demand is very high. However,
should the demands of the industry substantially decline during the term hereof such that
OWNER cannot comply with the employment of personnel and construction of
IMPROVEMENTS requirements of this AGREEMENT, OWNER may apply to the CITY for
an amendment to this AGREEMENT to reduce the requirements upon it in an effort to avoid a
default by OWNER hereunder due to a significant downturn in the market for parts in the
aerospace industry.
VII.
Personal Property Tax Abatement
7.1 Subject to the terms and conditions of this AGREEMENT, and subject to the
rights and holders of any outstanding bonds of the CITY, a portion of the ad valorem property
taxes assessed upon the IMPROVEMENTS and otherwise owed to the CITY shall be abated
as is provided for in the Property Tax Abatement Schedule attached hereto as Exhibit E. Said
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abatement shall be an amount equal to one hundred percent (100%) of the taxes assessed upon
the completed value of the IMPROVEMENTS on January 1, 2013, with this tax abatement
continuing at such rate of one hundred percent (100%) for the years 2013 through and
including 2015, and then declining by 20% in each year thereafter, commencing in year, 2016,
to 0% in year 2020, with this tax abatement terminating on December 31, 2019 (i.e. at the end
of year seven (7). Exhibit E attached hereto demonstrates the schedule of this tax abatement.
This tax abatement shall be in accordance with all applicable state and local regulations or
valid waiver thereof; provided that the OWNER shall have the right to protest or contest any
assessment of the PROPERTY, and said abatement shall be applied to the amount of taxes
finally determined to be due as a result of any such protest or contest. For the purposes of this
AGREEMENT, the initial value of the existing property of the OWNER that is not subject to
tax abatement AND WHICH DOES NOT INCLUDE THE IMPROVEMENTS (as defined
herein) shall be deemed to be the values as shown on the tax rolls of the Lamar County
Appraisal District as of January l, 2412, which values are stipulated to be $291,860.00 for
Land and Buildings, and $3,125,790.00 for tangible Personal Property.
7.2 The abatement granted herein shall be subject to and governed by the POLICY
STATEMENT CRITERIA AND GUIDELINES for TAX ABATEMENT, a copy of which is
attached hereto as Exhibit F. 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 between
the requirements of Exhibit F and this AGREEMENT, this AGREEMENT shall control.
VIII.
No Conflict of Interest
8.1 The OWNER represents and warrants that neither the PROPERTY nor the
IMPROVEMENTS include any real or personal property that is owned or leased by a member
of the Planning and Zoning Commission of the City of Paris, nor by a member of the City
Council approving, or having responsibility for the approval of, this AGREEMENT.
IX.
Conditions
9.1 The terms and conditions of the AGREEMENT are binding upon the successors
and assigns of all parties hereto.
9.2 It is understood and agreed between the parties that the OWNER, in performing
its obligations hereunder, is acting independently, and the CITY assumes no responsibility or
liability in connection therewith to third parties; and OWNER agrees to indemnify and hold
harmless the CITY therefrom. It is further understood and agreed among the parties that the
CITY, in performing its obligations hereunder, is acting independently, and the OWNER
assumes no responsibility or liability in connection therewith to third parties and, to the extent
permissible by law, the CITY agrees to indemnify and hold harmless the OWNER therefrom.
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X.
Compliance Provisions
10.1 The OWNER agrees that the CITY, its agents and employees, shall have the
reasonable right of access to records concerning the OWNER's investment in the
IMPROVEMENTS for the purpose of conducting an audit of the project improvements and
project costs. Any such audit shall be made only after giving the OWNER notice at least
fourteen (14) days in advance and will be conducted in such a manner as to not unreasonably
interfere with the operation of the facility. Upon request, the OWNER will provide the CITY
with a detailed Asset Report with an itemized list of assets placed into service from the date of
execution of this AGREEMENT to December 31, 2012. The Asset Report will provide the
date on which the asset was capitalized, the acquisition amount, and the accumulated
depreciation amount. At the CITY's request, the OWNER will provide actual invoices to
support the amounts shown on the Asset Report.
10.2 The OWNER further agrees that the CITY, its agents and employees, shall have
reasonable right of access to the PROPERTY to inspect the IMPROVEMENTS in order to
insure that the construction of the IMPROVEMENTS are in accordance with this
AGREEMENT and all applicable state and local laws and regulations or valid waiver thereof.
After completion of the IMPROVEMENTS, the CITY shall have the continuing right to
inspect the PROPERTY to insure that it is thereafter maintained and operated in accordance
with this AGREEMENT during the term of the AGREEMENT. All inspections will be made
only after giving the OWNER notice at least seventy-two (72) hours in advance, and such
inspections shall be conducted in such a manner so as not to interfere with the operation of the
facility. Representatives of the CITY inspecting the PROPERTY and improvements shall be
accompanied by one (1) or more representatives of the OWNER and shall sign an agreement
promising to maintain the confidentiality of any information they obtain in connection
therewith except for the purposes of assessing and collecting ad valorem taxes and verifying or
enforcing compliance with this AGREEMENT. Said representative shall also be required to
observe any facility rule and regulation applicable to the PROPERTY. Nothing herein shall be
construed as limiting the CITY's ability to perform inspections or to enter the PROPERTY the
subject of this AGREEMENT.
XI.
Initial and Annual Reporting
11.1 The OWNER further agrees that it will, within thirty (30) days of completion
of the IMPROVEMENTS (being at least once each year following January 1, during each of
the years 2013 through 2017), provide CITY with a sworn report, written on OWNER'S
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;
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(b) Detailed description of the IMPROVEMENTS;
(c) Detailed description of any miscellaneous items of office equipment and
the actual cost of such added office equipment;
(d) Copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by CITY's
certification team;
(e) Detailed list of and actual cost of added machinery and equipment;
( fl Actual cost of capital IMPROVEMENTS; and,
(g) Date of substantial completion of the IMPROVEMENTS for the year, 2017,
as defined in paragraph 3.1 hereof.
11.2 The OWNER further agrees that it will provide the CITY with an annual,
sworn report which shall certify, in writing, that it is in compliance with each applicable term
of this AGREEMENT. Such annual report shall be furnished on the forms provided by the
City.
11.3 In addition to the annual report required under Section 11.2 hereof, the
OWNER further agrees that it will provide CITY a copy of its Texas Workforce Commission
Employer's Quarterly Report within thirty (30) days of its filing of the same with the Texas
Workforce Commission.
XII.
Authority to Contract
12.1. This AGREEMENT was authorized by resolution of the City Council at its
regularly scheduled meeting on this date of November 12, 2012, authorizing the Mayor to
execute the AGREEMENT on behalf of the CITY.
12.2 This AGREEMENT was entered into by OWNER 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:
T & K Machine, Inc.
Attn: Corey C. Campbell, Vice President, Operations
2220 W. Park St
Paris, TX 75460 (coreyc(�a,tk�aris.com)
With a copy to•
T & K Machine, Inc.
Attn: David Landrith, Controller
2220 W. Park St
Paris, TX 75460 (davidl(c�tkparis.com) AND TO:
TBEI, L.P.
3003 Stanford Ave.
Dallas, TX 75225
CITY:
City of Paris, Texas
Attn: City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a copy to:
City Clerk, City of Paris, Texas (address same as above)
13.4 If any term or provision of this AGREEMENT shall be declared unconstitutional or
void by any court of competent jurisdiction, the constitutionality and validity of the remainder
i!�
of said AGREEMENT shall not be affected thereby, and to this end the terms and provisions
of saidd AGREEMENT are declared to be severable.
13.5 This AGREEMENT sets forth the entire understanding between the parties, and any
other understandings or agreements shall be canceled and superseded by this AGREEMENT
upon the date of execution hereof. None of the terms of this AGREEMENT shall be waived,
discharged, altered or modified in any respect, except by an Agreement in writing signed by
both parties and specifically referring to this AGREEMENT. The captions in this
AGREEMENT are included for convenience only and shall not be taken into consideration in
any construction or interpretation of this AGREEMENT or any of its provisions. This
AGREEMENT is performable in Lamar County, Texas, and shall be governed by, construed
and enforced in accordance with the laws of the State of Texas. The provisions of this
AGREEMENT shall apply to, bind and inure to the benefit of the CITY, OWNER, and their
respective successors, and permitted assigns, if any.
13.6 Venue for any actions arising under this AGREEMENT shall lie exclusively in the
courts of Lamar County, Texas, for any State Court action, and in the U.S. District Court for
the Eastern District of Texas for any federal court action.
WITNESS our hands this 12th day of November, 2012.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
CITY OF PARIS, PARIS, TEXAS
I�
A. J. Hashmi, M. D., Mayor
T & K MACHINE,INC.
By:
Marshall Taylor, President
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LIST OF EXHIBITS TO THIS AGREEMENT:
A= 2010 Designation of Enterprise Zone which includes OWNER'S PROPERTY, and
Land of OWNER in Paris, Texas
B= Land Description of OWNER'S facility in Paris, Lamar County, Texas
C= Drawings showing the new building and the location of the IMPROVEMENTS
within the new building.
D= CITY'S Certificate of Completion
E= Property Tax Abatement Schedule
F= CITY'S Guidelines and Criteria for Tax Abatements
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LIST OF EXHIBTTS TO THIS AGREEMENT:
A= 2010 Designation of Enterprise Zone which includes OWNER'S PROPERTY, and
Land of OWNER in Paris, Texas
B= Land Description of OWNER'S facility in Paris, Lamar County, Texas
C= Drawings showing the new building and tb�e locaiion of the IMPRUVEMENTS
within the new building.
D= CITY'S Certificate of Completion
E= Property Tax Abatenaent Schedule
F= CITY'S Guidelines and Criferia for Ta� Abatements
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EXHIBIT A
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EXHIBIT B
Nelson Surveying Company
920 Nor#h Main Street Paris, Texas 75460
8d3-785-3551 fax 903-7$b-3399
J. M. Nelson, Registered Professional Land Surveyor of Texas, #d025
T&K Disk-111 Pafk St. (West of 19th N.W. ) JHerrington#436
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Siivated within the Corporate �imits of the City of Paris, Courtty of Lamar, and State of
Texas, a part of the John Herrington Survey #436, and being a called 2.967 acre tract of land
conveyed Thomas E. Westbrooks and Frances L. Wesbrooks by deed recorded in Vol. 642,
Page 269, anc! a called 3.683 acre tract of fand conveyed Thomas E. Westbrooks and Frances L.
Westbrooks by deed recorded in Vol. 599, Page 838, of the Deed Records of said County and
State.
Beginning at an iron pin (fl for comer in the North Boundary Line of Park St. at the Southeast
comer of said 3.683 acre tract, said point being the Southwest comer of a called 8.496 acre tract
of land conveyed Fiex-O-Lite, lnc., by deed recorded in Vol. 157, Page 31, of fhe Real Property
Records of said County and Siate, said point being South 89 Deg. 39 Min. 25 Sec. Wesf a
distance of 692.77 ft. fram the intersection of the No�th Boundary Line af said Park St. and fhe
West Boundary Line of 19th N.W. (Farm Road 79).
Thence Nortfi 0 Deg. 25 Min. 39 Sec. West a distance of 501.5 fi. to an iron pin (s) for comer
at the Northeast comer of said 3.683 acre tract and fhe Northwest comer of said 8.496 acre tract;
7hence along the North 8oundary Line of said 3.683 acre tract and said 2.967 acre tract as
follows: South 67 Deg. 43 Min. 35 Sec. West a distance of 839.16 ft. to an iron pin (�; South 60
Deg. 51 Min. 18 Sec. West a distance of 168.31 ft. to an iron pin (� for corner at the Nor#hwest
comer of said 2.987 acre tract, said point being the Narfher(y Northeast comer of a called '[6_66
acre fract of land conveyed Thomas E. Westbrooics and Frances L. Westbro�ks by deed
recorded in Vol. 192, Page 89, of said Reai Property Records;
Thence South 0 Deg. 16 Min. 44 Sec. East a distance of 105.19 ft. to an iron pin (fl for corner
at the 5outhwest comer of said 2.967 acre tract and an el comer of sald 16.66 acre tract;
Thence North 89 Deg. 47 Min. 57 Sec_ East a disiance oi 550.04 ft, to an iron pin (fl for
comer at the Southeast comer of said 2.967 acre tract, the Southwest corner of said 3.683 acre
tract, the Easterly Northeast comer of said 96.66 acre trad, and the Northwest comer of said
Park St.;
Thence North 89 Deg. 43 Min. 26 Sec. East aiong the North Boundary Lirte of said Park St. a
distance of 378.75 ft. to the place of beginning and containing 6.650 acres of land.
I, J.M. Nelson, Registered Professional Land Surveyar of Texas, #4025, certify to
Thomas E. Westbrooks and Frances L. Westbraoks (seliers), to 7BE1, L.P., a Texas limited
partrtership (purchaser), and to S#one Title Co., Inc., that the above depicted and described tract
of land was faken from an actual survey made on the ground and completed by me on the �Ot�
day of September, 1998, that ihis survey is a Category 1A, Conditior� If, Land 7itle Survey in
accordance w�th the Standards for Land Surveys for the Texas Society of Professiona!
Surveyors, fhat alE visible buifdings, improvements, fences, encumbrances, encroachmenfs,
canflicts, pratrusions, and uses -- including the location of all highways, sireets, road, easments,
alleys, and rights-of-way upon or adjacer�t to ihe (and are accurateJy shown thereon, that this
tract of land contains 6.65d acres o€ land, and that this iraci of land does not appear to Iie in a
flood zone as indicated by Communi#y Panef #480899 0008 A and Gommunity Panel #480427
0001 B of the �'ederal Fioad lnsurance Maps.
J.M. Nelson, RPLS of Texas, #4025 date
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EXHIBIT D
EXHIBIT D
CERTIFICATE OF COMPLETION
STATE OF TEXAS
COUNTY OF LAMAR
CITY OF PARIS
The City of Paris, Texas (the "City"), has executed and delivered a Tax Abatement
Agreement with T& K MACHiNE, INC., a Texas corporation, for the abatement of ad valorem
taxes to be collected for the City upon certain new equipnnent (the "Improvements") to be
installed at the corporation's plant in Paris, Texas.
T& K MACHINE, INC. has complied with the tax Abatement Agreement, and the City,
acting herein by and through the its duly elected Mayor, verifies that the Improvements agreed
to be built, installed and used have in fact been coznpleted as provided for in the Tax Abatement
Agreement.
NOW THEREFORE, the City authorizes that the Property described in the Tax
Abatement Agreement shall receive an abatement of City taxes of 100% of such 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 three (3) years, be�inning January 1,
2013, with such tax abatement then declinin� by 20% in each year thereafter, to 80% in 2416 and
to 0% in the year, 2020.
APPROVED this day of , 20`.
Mayor of the City of Paris, Texas
APPROVED AS TO FORM:
City Attorney
EXHIBIT E
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EXHIBIT F
Paris, Texas Economic Deveiopment Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
I. Generat 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 Ciiy 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 of real and
personal property for projects that stimulate economic growth and diversification in the City.
Ta�c abatement benefits may be made available to industrial, manufacturing, distribution, and
service facilities, or any "primary jobs" creating industry as defined by the Economic
Development Act of the State of Texas. The facility must be currently in the City or locating in
the City, and located in a designated Enterprise Zone or Reinvestnnent Zone. New facili#ies 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, Lamar County and Paris Junior College are
under no obligation to pravide tax abatement to any applicant.
The Paris Ciry Council acts as the lead entity for projects located in the city Jimits. The Lamar
County Board of Commissioners and the Paris Junior College Board of Regents have also
adopted this policy and will consider tax abatement request that qualify under these policies.
iI. Definitions.
Definitions are provided as an Appendix A.
III. Designation of a Reinvestment Zone.
The City or County may designate an area as a reinvestment zone in accordance with the
criteria and procedural requirements set forth in the Property Redevelopment & Tax Abatement
Act, as amended (Texas Tax Code Sec. 312.401 (b)}, For any area within the jurisdiction of the
City to be eligible for tax abatement it must meet the criteria for designation as a tax abatement
reinvestment zone as set forth in the Property Redevelopnnent and Tax Abatement Act, Texas
Tax Code Chapter 312.
TV. Tax Abatement Authorixed.
The City, through its elected City Council, may agree in w.citing with the owner and/or Iessee of
taxable real and/or personal property tha.t is located in a reinvestment zone, but that is not in an
improvement proj ect financed by tax increment bonds, to exempt from taxation a partion of the
value of the real properly, ar of personal property located on the real property, ar 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 conditiQn that the owner or lessee of the property
rnakes specific improvezxients 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 exteni 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 cavered by
the agreement. Inventory or supplies cannot be abated as personal property.
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
T� abatement may only be granted for additional value of eligible property improvements made
subsequent to and specified in an abatement agreement between the Caty and the property owner
or lessee subject to such limitation as the City may require. The additional value must exceed any
reduction in the fair market value of other property of the owner already on the tax role with the
jurisdiction of the City. Change in appraised value daes 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 agreements will be conducted by the Paris Economic
Development Corporation (Paris EDC} 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 retnrn 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 (e.g, capital investrnent).
V. Eiigibility Criteria for Tax Abatement for Real and Persanal Property
A property owner andior lessee shall be eligible for tax abatement only upon the follow�ng
criteria. .
Eli 'bili Criteria for Taa Abatement
Authorized 1. An authorized facility is used for manufacturing, research, regional distribution, regional
Facility tourist entertainment, other basic industry, or any primary jobs creating industry. (See
Appendix A for detailed definitions.)
2. A new authorized facifity must be created, or an existing authorized facility must be
improved, modernized or expanded.
3. If a Ieased 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 lf
the agreement is with the lessor, lessor shaU demonstrate binding contracts with the lessee to
uarantee com liance with the terms of the a reemenY.
Bligible 1. The property involved must be a newiy created or improvements to an existing authorized
Property facility
2. Eligible property for which abatement may be granted includes nonresidential real property
and/or tangible personal property not located on the real properiy at any time before the
abatement agreement becomes affective.
3. Abatement may be extended to the value of buildings, siructures, fixed machinery and
equipment, site improvements, tangible personal property, and that office space and related
fixed improvements necessary to the operation and administrahion of the authorized facility.
4. Invento or su lies shall not be eli ible for abatement
Historic I. If the property invoIved is a historic property in the City's Historic Districts there are certain
1'roperty commercial and residential tax exemptions allowed.
Located in 2. Exterior improvements in the historic districts are allowed at ]00% for seven (7) years with a
Historic minimum investment of $5,000 for residential property and $ I0,000 for commercial property_
District 3. New residential construction requires a minimum investment of $100,000 to be considered for a
three (3) year ] 00% exemption.
4. New commercial conshvction requires a minimum invesiment of $200,000 for a 100% tax
exem tion for three (3) ears.
Value and ]. The City wil) decide whether to grant tax abatement to an applicant, and the amount, if any, of
Term of such abatement, on a case-by-case basis and in accordance with these Criteria and Guidelines.
Abatement 2. Theterm ofabatementgranted underany agreement may not exceed that permitted by
a licable state law.
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
3. The amount of the abatement shall be based upon a percentage (0 to l00%} of all or a
portion ofthe eligible property within the authorized facility.
4. Abatements may only be granted for the additiona] value of eligible real and personal
property improvements made pursuant to and listed in the agreement between the City and
progerty owner and/or lessee, subject to such limitations as the City may require.
S. Real property tax abatement may be granted anly to the extent that its vatue for each year of
the agreement exceeds its value for the year in which the agreement is executed.
6. If a modernization project includes the replacement of improvements within an authorized
facility, the value eligible for abatement shall be the value ofthe new unit{s), less the value of
the re taced unit(s).
Abatement The criteria used to evaluate a proposed project application for abatement includes, but is not
Evaluation limited to:
Criteria ]. The dollar amount of the increase in the ta�c roll.
2. The number of jobs created or retained by the employer involved.
3. The possible effect on attracting other taxable improvements into the City.
4. The nature of, and overall effect on the City.
5. The effect on the safefy, health, and morals ofthe City's residents.
6. Any substantial long-term adverse effect on the provision of City services or its tax base.
7. Meeting all relevant zoning requirements.
8. Consistent witE► the comprehensive plan of the City or County of Lamar.
9. The types and cost of public improvemenu and services (water and sewer main extensions,
streets and roads, etc.) required of the City.
10. The es and values of ubiic im rovements to be furnished b the a licant.
Economic To be eiigible to receive tax abatement, the planned improvements:
Qualification 1. Must be reasonably expected to increase the appraised value of the property.
2. Musi be expected to prevent tkre [oss of employment, or assist in 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 Ciry to another without demonstration of increased future
investmeni {do[lars or jobs) or unusual circumstances w6ereby wiihout such a move
employment is likely to be reduced.
4. Must be necessary because capacity cannot be provided efficientty utilizing existing improved
properry when reasonable allowance is made necessary improvements or relevant
overnmental actions.
Taxabiliry During the term of the agreement, taxes shall be payable as follows:
l. The base year of eligible property as determined each year by the Lamar County Appraisal
District, shal] be fully taxable.
2. The additional value of eligible property above the base year value shall be taxable in the
manner described in the agreemeni.
3. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an
assessment of the real and personal property comprising the reinvestment zone.
4. Each year, the employer, the company or individua] receiving abatement pursuant to an
agreement shal] fumish the assessor with such information as may be necessary Yo determine
the amount of any abatement.
5. Once such value has been established, the Chief Appraiser shall notify the affected
jurisdictions, which levy taxes on such property and also notify the Paris EDC.
6. 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 designazed sum of money and to create or retain a certain number of jobs,
or annual a oll as further defined below.
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Capital Investment, Payroll and Job Creation Criteria
A tax abatement may be made available to employers who are creating jobs and increasing new capital investment
wiih respect to an authorized facility located anywhere within the City or its extra territorial jurisdiction based on
the following criteria.
To be eligible for any ta�c abaterr�ent, there must be a minimum capital investment in the authorized facility of
$250,000 and at Ieast ten (] 0) new jobs added to the employer's labor force. The chart below provides
When an abatement percentage has been agreed upon it shaU be granted based on the following schedule. This
chart does not imply that 100% of the vaivation will be abated. lt refers to the ratio of the agreed-to
abatement.
Timeframe �ercent of Abatement A reed To
Year ] ] 00%
Year 2 104%
Year 3 l00%
Year 4 $0%
Yea�' S 60%
Year 6 40%
Year 7 20%
Year 8 Valuation full back on tax rolls) 0%
3. Any project with a capital investment of more than ten million dollars ($10,000,000), accompanied by a
newly created minimum annua! payroll of two and one-half million dollars ($2,SQO,Q00), or creating more
than two hundred twenty-five (225) jobs will be individually negotiated.
4. No abatement will be granted for more than specified in state law.
5. If a newly created business is iocated or will locate within an enterprise zone, an additiona] 10 to 20%
abatement may be available as individually negotiated, with total abatement not to exceed 104%.
6. The City recognizes a significant difference in the vaIuation of real propsrty 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 properly versus real property may be different.
7. If persona] property should become obsolete and be replaced while under an abatement agreement, the
replacement personal properly is not eli�ible for abatement.
VI. Tax Abatement for Existing Employers Regarding Real or Personal Pr�perty.
The City recognizes the value of its existing employers to the wellbeing of the community. The
City desires to encourage existing emplayers to remain in the City and to irnprove their
respective businesses and industries, as well as their profitability.
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Accordingly, if an existing employer {as opposed to a newly created business or industry
moving into the City), owns ar 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 emplayer may be eligi�le for ta�c abatement with respect to such improvements
to its real property or its new personal property under the provisions of Article V above, even if
no new jobs or newly created minimum annual payroll are created.
In projects involving existing employers, the criteria for tax abatement for improvements to real
property and for new personal properry 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). The City encourages existing employers to retain as many jobs and as much existing
annual payrolI as is economically feasible for the existing employer, while rernain competitive
in its industry.
VII, Ap lication Process
A Iication Process
Eligibility Any present or potential owner of taxable property in the City may request tax abatement by
fil ing a written request with the City Manager or County Judge, with a copy of the application
forwarded b the a licant to the Executive Director of the Paris EDC.
Form The application shaU consist of a completed application form accompanied by the following:
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 ofthe improvements for which abatement is requested.
3. A list of the kind, number, and location of al l proposed improvements of the property.
4. A list of the number and type of jobs created, including information pertaining to anticipated
job transfers (if any).
5. A metes and bounds description and plac of the proposed reinvestment aone that shows all
roadways within 2U0 feet of the reinvestrnent zone and atl existing zon;ng and land uses
within 200 feet of tha reinvestment zone.
6. A time schedule for undertaking and completing the proposed irnprovements.
7. The type and value of any economic development incentives requested.
8. Any other information about the proposed project as may be required by the City or as deemed
desirable b the Ci .
Review 1. The application wili be reviewed by members of the Tax Abatement Committee.
2. The application will be distributed to the appropriate department heads and taxing entities for
review and comment.
3. No tax abatemenT application shall be considered for further processing by the governmental
eniities unless first approved by the goveming board of the Paris EDC.
4. Upon approval by the Paris EDC Board the application will processed through the approval
rocess of the ovemin bodies for their consideration.
Public 1. The City will comply with certain public notices and hearings required as mandated by state
Hearing law under the Property Redevelopment and Tax Abatement Act prior to the designation of a
reinvestment zone and execution of a tax abatement agreement.
2. The City may adopt an ordinance designating a tax abatement reinvesUnent zone anly after
notice of a pubiic heazing has been published at least seven (7) days before the clate of the
hearing, and all other procedural requirements of CE�apter 312 of the Texas Tax Code have
been satisfied.
Findings In order to enter into an agreement, the City must find that:
1. Thetermsoftheproposed agreement comply with these Guidelines and Criteria.
z. There will be no substantial adverse affect on the provisiop of City services or tax base.
3. That the lanned use of the ro e will not constitute a hazard to ublic safe , health or
Paris, Texas Economic Develapment Corporation
POLTCY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
moraIs.
4. incident to approval of any ordinance designating a reinvestment zone, the Ciry shall find that
the improvements sought are feasibie and practical and would be a benefit to the land to be
included in the reinvestment zone and to the Ci after the ex iration of the a reement.
Variances Requests for variance from the provisions of these Guidelines and Criteria may be made in writing
to the City; provided, however, that in no event shal! the term of any abatement exceed the period
authorized by applicable state law. Such request sha[I include a complete description of the
circumstances requ'ving a variance. Approvai of a request for variance shall require the
affirmative vote of thme-fourths 3/4} of the members of the Ci Council.
Proposed The adoption of these Guidelines and Criteria by the City does not limit the discretion of the City
Agreements Council to decide whether to enter into a specific tax abatement agreement, or limit the discretion of
Decided on the City Council to delegate to its employees the authority to determine whether or not the City
Tndividual should consider a particular appiication or request for tax abatement, or create any property,
Basis contract, or other legat right in any person or entity to have the City Council consider or grant a
s ecified a lication or re uest for tax abatement.
VIII. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terms and conditions to be included in any formal abatement
agreement.
IX. Amendments to Guidelines and Criteria
These Guidelines and Criteria 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 Ciry Council.
For a tax abatement application or additional information contact:
Paris Economic Development Corporation
1125 Bonham Street
Paris, Texas 75460
903-784-b964
Fax 903-784-2503
t4"1i'4Y �nanste�:�susa.cam
EmaiI: pa�•isedc u ariste�susa.cc�m
Paris, Texas Economic Developznent Corporatzon
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
APPENDIX A
Term . � ; ���t�on ::: . . .
, . _., , �, . ,
Abatement or Tax The full�or partial exemption from ad valorem taxes of certain real and tangibfe personal
Abatement ro e in a Reinvestment Zone desi nated for economic develo ment u oses.
Agreement or The written legal agreement for t� abatement between a property owner and/or lessee and
A reements the Ci of Paris, and also between Lamar Coun and Paris Junior Colle e.
Authorized A facility may be eligible for abatement if it is a facility used for manufacturing, research,
Commercial or regional distribution, regional tourist entertainment, other basic industry, or any primary jobs
Industrial Facility creating industry (ail terms are defined below). All authorized facility definitions include
buildings and structures, including fixed machinery and equipment used in operating the
facility; AND/OR if the facility is a Historic Aroperty defined in Section IV (b) within a City
of Paris Historical District.
Authorized The City of Paris may also designate areas of the City where residential properties may be
Residential Facility considered for abatement. The City of Paris will approve their residential abatement
olicies, criteria and uidelines se arate from these olicies. See Section IV (b}.
Manufacturing The purpose of which is or will be the manufacture of tangible goods or materials or
Facility the processing of such goods or materials by physical or chemical change.
Facilities primariiy engaged in assembling component parts of manufactured products
are also considered manufacturin facitities.
Regional Used primarily to receive, store, service, or distribute goods or maYerials where a
Distribution majority of the goods or services are distributed to points at least 100 miles from its
Facili location in the Ci of Paris.
Regional Used in providing amusement/entertainment through the admission of the general public
Tourist where the majority of users reside at least 100 miles from the City and where the
Entertainment majority of users are likely to stay in the City for more than one c3ay and will therefore
Facili likel utilize Ioca[ restaurants and hoteVmotel accommodations.
Research Used primarily for research or experimentation to improve or develop new tangible
Facili oods or materials or to im rove or develo the roduction rocesses thereto.
Other Basic Not elsewhere described, used for the production of products or services which result in
indus tbe creation of new jobs and brin new wealth into the Ci .
Primary Jobs Any industry creating "primary jobs" defined as a job that is available at a company for
Creating which a majority of the products or services of that company are ultimately exported to
Industry regional, statewide, national, or international markets infusing new dollars into the
local economy, and that meets any one of certain enumerated sector numbers of the
North American lndustry Ciassifcation System (NAICS} found in the Development
Cor oration Act of the State of Texas.
Base Year The assessed value of eligible property as of January 1, preceding the date of execution of the
Value agreement plus the agteed 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
ar down from ear to ear as er renditions b the Lamar Coun A raisal District.
Employer The owner or lessee of property, who is applying for ta�c abatement and who wiil provide
'obs and ca ital investment within the Reinvestment Zone or within the Ente rise Zone.
Reinvestment An area where the City or County has decided to influence development patterns and
Zone attract major investments that will contribute to the development of the area through the
use of taac abatement for specified improvements. These statues are found in Chapter
312 of the Texas Tax Code.
Ente rise Zone An area of land desi nated as such under Cha ter 2303 of the Texas Government Code.
Job or Jobs 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 and some form of
retirement beneft. A job is not a position filled for the emp(oyer as a worker or
employee of an employment agency or service. "7obs" also includes "Full-time
E uivalent Jobs" defined below.
Paris, Texas Economic Development Corporation
POLTCY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
Euil-time A number of part-time jobs where the hours worked in each such job is less than 32 hours
EqnivalenT per week, made available by one employer and added together. For example, sia�teen
(FTE) Jobs ( I G) part-time jobs made available by one employer where all such part-time jobs added
together require a total of 352 hours of work per week {but no such part-time job
requires 32 hours of work or more per week), will equal eleven (11) FTE jobs (352
hoars divided by 32 hours per week equal ] 1). FTE jobs do not require the employee to
receive beneFts from the em io er.
Modemization 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 resuli from the construction, alteration or installation of
buifdings, structures, fixed machinery or equipment, but shall not be for the purpose of
reconditionin , refurbishin , re airin , or deferred maintenance,
Personal Machinery, equipment, tools, shelving or materials eligibte under applicable law for tax
Property abatement, which can be removed from an authorized facility described in Section IV
a.
Aro e Real Pro e or Personal Pro e defined herein that is eli ible for tax abatement.
Real Property The land within an Enterprise Zone or a Reinvestment Zone, together with ali
im rovements and fixtures constructed or otherwise siivated thereon.
Tax Abatement The committee of persons designated from time to time by the Aaris Economic
Committee 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 Lamaz (the County Judge or designee), Paris Junior College (the President or
designee), the Chief Appraiser of the Lamar County Appraisai District, and the
Executive Director of the Paris Economic Develo ment Co oration.
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
APPENDIX B
Abatement Agreement Terms and Conditians
After approval, the City shall formally pass an order or resalution and authorize the execution of
an agreement with the owner and/or lessee of the authorized facility, which shall include, but
not be limited to the following terms and condirions:
Contract Terms & Conditions
Project The following project specifics will be included:
Description 1. The base year value.
2. Percent of increased value to be abated each year.
3. The commencement date and the termination date of abatement.
4. Amount of investment and average number of jobs involved during the term of the
agreemeni.
5. T'he proposed use of the authorized facility, nature of construction, time schedule, plat,
property description, and improvement list, as provided in the application.
6. A listing of the kind, number, location, and costs of all proposed improvements of the
property.
7. 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
properiy tax abatement is in effect.
8. 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 ta the
specifications and conditions of the agreement.
9. 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 agree►nent.
l0. Each term agreed to by the owner of the property.
] 1. A requirement that ihe owner of the property shall certify annually to the City that the owner is
in compliance witFi each applicable term of the agreement.
12. Contractual obligations in the event of default, violation ofterms or conditions, deiinquent
taxes, recapture, administration and assignment, or other provisions that may be requirad by
state law, or in the discretion of the Ciiy Council.
I3. That the City may cancel or modify the agreement if the property owner fails to comply with
the a eement.
Defaulf 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 shal] notify the company or individuai in
writing at the address stated in the agreement, and if such default is not cured within a reasonable
time specifed in such no'tice ("cure period"}, then the agreament 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 ofthe agreement and fails
to cure during the care period, the agreement then may be roodified or terminated without further
notice, and the agreement may provide a formula for recapture of ali or part of the taxes abated.
At any time before the expiration, any tax abatement agreement may be terminated by mutual
consent of aIl arties involved in the same manner that the a eement was executed.
ConfidenYiality Inforn,ation that is provided to a taxing unit in connection with an application or request for tax
of Proprietary abatement under these Guidelines and Criteria and that describes the specific processes or business
lnformation activities to be conducted or the equipment or other property to be located on the property for
which ta�c abatement is sought is conf dential and not subject to public disclosure until the
agreement is executed. Sach information in the custody of the City after the agreement is
executed is not confidential hereunder.
Inspections The agceement shall stipulate that employees and/ or designated representatives of the City will
have access to the reinvestrnent zone durin the term of the reement to ins ect the authorized
Paris, Texas Economic Development Corporation
POLICY STATEMENT
CRITERIA AND GUIDELINES FOR TAX ABATEMENT
facility to determine if the terms and conditions of the agreement are being met. All inspections
will be made only after 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 faciiity. All inspections will be made with one ar
more representatives of the company or individual and in accordanee with its safety standards.
Upon completion of wnstruetion, the Ciry shall annually evaluate each authorized faciliiy
receiving abateme�t to ensure compliance with the agreement and report possible violations of the
a reement to the Ci CounciJ.
Modifications At any time before the expiration of an agreement made under these Guidelines and Criteria, the
of Agreement 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 modifcation 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 terrn of the agreement or the term of the abatement granted therein
be ond the time ermitted b State law.
Assignment An agreement may be assigned to a new owner or lessee of the authorized facility only with the
prior wrirten consent of the City. Any assignment shail provide that the assignee shall
irrevocably and unconditionally assume al1 the duties and obiigations of the assignor upon the
same terms and conditions as set out in the agreement, and the Ciry's approval shall be subject to
the determination of the financial capability of such assignee. Any assignment of an agreement
sball be to an entiry that contempiates 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 obfigations, or
if an event of default under the a reement remains uncured.
Administration, l. Ttte Paris EDC shall be primarily responsible for the administration, review, and monitoring
Contract of taa: abatement agreements authorized by the City under these Guidelines and Criteria.
Review, These responsibitities sha11 include verifying that participants in tax abatement agreements
Monitoring and are in full compliance with the terms of the agreement.
Reporiing 2. The Paris EDC shall expeditiously advise the City in writing of any instances of contract
non-compliance by tax abatement participants. In addition, the Paris EDC shall, on an
annua] basis, conduct a performance review of the activities of each t� abatement
paRicipant and repott the findings of such review to the City Council.
3. The City shal] retain the right to independently review and audit the activities of tax
abatement participants.
4. The City shall be responsible for enforcement of the terms of any tax abatement agreement
authorized hereunder.
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