2013-011 RES APPROVING AND AUTHORIZING TAX ABATEMENT AGREEMENT WITH CAMPELL SOUPRESOLUTION NO. 2013-011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH
CAMPBELL SOUP SUPPLY COMPANY LLC; MAKING OTHER FIIVDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, the City Council of the City of Paris has been presented a proposed
agreement by and between the City of Paris, Texas and Campbell Soup Supply Company, LLC,
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 February 25, 2013, to
allow interested persons to comment on the proposed Tax Abatement Agreement; and,
WHEREAS, upon review and consideration of the Agreement, and all matters attendant
and related thereto, the City Council is of the opinion that the terms and conditions thereof
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 attached hereto as
Exhibit "A" and the property the subject thereof ineet the City's Guidelines and Criteria for Tax
Abatement adopted by the City of Paris by Resolution No. 2012-072 passed on August 13, 2012.
Section 3. That the terms and conditions of the Tax Abatement Agreement between
the City and Campbell Soup Supply Company, LLC 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 25th day of February, 2013.
ATTEST:
�
nice Ellis, City Clerk
APPROVED AS TO FORM:
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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 CAMPBELL SOUP
SUPPLY COMPANY LLC, acting by and through its authorized officer whose signature
appears below (hereinafter referred to as "OWNER").
WITNESSETH:
WHEREAS, the City Council of the City of Paris did heretofore, on the 13th day of
August, 2012, in Resolution No. 2012-07, elect to be eligible to participate in ta�c abatement
agreements in order to maintain and enhance the commercial and industrial economic and
employment base of the Paris area for the long term interest and benefit of the City and its
citizens; and,
WHEREAS, under the Texas Enterprise Zone Act (Government Code Chapter 2303),
the designation of an area as an Enterprise Zone also constitutes designation of the area as a
reinvestment zone (the "Reinvestment Zone"); and pursuant to the 2010 Census, the
PROPERTY of the OWNER within City of Paris, Texas, is included within an ENTERPRISE
ZONE, as is shown in the print-out from the Office of the Governor of the State of Texas on its
website in Exhibit A, attached hereto and made a part hereof for all purposes; and
WHEREAS, the contemplated use of the IMPROVEMENTS, as hereinafter defined, in
the amount as set forth in this AGREEMENT upon and within the PROPERTY (herein called
the PROJECT), and the other terms hereof are consistent with encouraging development of said
Enterprise Zone in accordance with the purposes for which it was created and are in compliance
with the CITY's policy on tax abatement incentives and the ordinance creating such Enterprise
Zone adopted by the CITY and all applicable laws; and
WHEREAS, the City Council of the City of Paris did heretofore, on the 13th day of
August, 2012 in Resolution No. 2012-072, pass and adopt appropriate guidelines and criteria
governing tax abatement agreements to be entered into by the CITY as required by the Property
Redevelopment and Taa� Abatement Act, as amended;
NOW, THEREFORE,
The Parties hereto do mutually contract and agree as follows:
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I.
Term
1.1 The effective date of this AGREEMENT is the 25"' day of February, 2013, with
tax abatement beginning with the tax year commencing January 1, 2014, and expiring on
December 31, 2020.
II.
Area to be Improved
2.1 The PROJECT consists of new building modifications to the real property of the
OWNER, and the addition and installation of equipment and personal property described in
Article III, below, all to be performed by OWNER within an existing building of the OWNER at
the OWNER'S plant in Paris, Lamar County, Texas. Collectively, all such improvements which
are the subject hereof shall be called the "IMPROVEMENTS". The IMPROVEMENTS shall be
located upon and within the OWNER'S current facilities consisting of the OWNER'S land also
described in Exhibit A, attached hereto and made a part hereof for all purposes (as are all
Exhibits which are mentioned herein), and within the building at the location shown within the
drawings attached hereto as Exhibit B. The land and building are herein called the
"PROPERTY".
III.
Improvements
3.1 The installation of the IMPROVEMENTS will require engineering, design and
construction work to prepare the site within OWNER'S building where the new equipment will
be located, and the procurement of equipment, infrastructure and utilities modifications and
electrical and mechanical installation. The IMPROVEMENTS are being made to enable the
OWNER to manufacture single-serve beverages in aluminum containers at the PROPERTY.
The single-serve beverages will consist of red juices, Fusion, potential for teas and potential for
carbonated products. The aluminum container sizes to be manufactured will be 5.5 ounce, 8.4
ounce and 11.5 ounce. The IMPROVEMENTS are described as follows:
A. To the real property of OWNER, building modifications to support proper
operation and sanitation of the installed equipment. This includes utilities, floor,
wall, and ceiling finishes, as well as some structural improvements to the building
to support static, live and dynamic equipment loading.
B. Container Delivery, to consist of depalletizer for purchased aluminum containers
and dedicated container lines by diameter to filling operation.
C. Prep Operation, to consist of multiple ingredient handling systems and hold/pre-
blend tanks, and independent tomato paste standardization system.
D. Blending Operation, consisting of a single 1,000 gallon blend tank, supported by
pre-blend, hold and feed tanks.
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E. Sterilization Process, consisting of a plate and frame sterilizer and supporting hot
water set.
F. Filling Operation, consisting of a 103 Solburn waterfall filler and closer for 5.5
ounce and 8.4 ounce cans, and a 103 Solburn waterfall filler and closer for 11.5
ounce cans.
G. Cooling Process, consisting of a pasteurizer to provide for future carbonated
capability.
H. Packaging Operation, consisting of pre-printed shrink film multi-packing
equipment, a tray-packer and shrink tunnel; and a palletizer; and stretch wrapper
equipment.
All such 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
by OWNER to CITY in OWNER'S sworn report described in Section 11.1, below and attached
to CITY'S Certificate of Completion. The description shall also be filed with the Chief Appraiser
of the Lamar County Appraisal District. Said Certificate shall be duly executed by the Mayor of
the City of Paris in the form attached hereto as Exhibit C. The IMPROVEMENTS will be at a
cost equal to or in excess of $24,000,000.00 for the capital cost and installation of the building
modifications, machinery and equipment, and $2,500,000.00 in expense. Site preparation shall
occur during February and March, in 2013; installation shall commence in May, 2013; and
production is expected to commence in October or November, 2013; provided, that OWNER
shall have such additional time to complete the IMPROVEMENTS as may be required in the
event of "force majeure" if OWNER is diligently and faithfully pursuing completion of the
installation of the IMPROVEMENTS. For this purpose, "force majeure" shall mean any
contingency or cause beyond the reasonable control of OWNER including, without limitation,
acts of God, or the public enemy, any natural disaster, war, riot, civil commotion, insurrection,
governmental or de facto governmental action, unless caused by acts or omissions of OWNER,
fires, explosions, accidents, floods, and labor disputes or strikes. The date of completion of the
IMPROVEMENTS shall be reflected in the Certificate of Completion issued by the City of
Paris, Texas, referred to above.
IV.
Consideration
(Improvements)
4.1 The OWNER agrees and covenants that it will diligently and faithfully, in a good
and workmanlike manner, pursue the completion of the IMPROVEMENTS. As a good and
valuable consideration for this AGREEMENT, OWNER further covenants and agrees that all
construction of the IMPROVEMENTS will be in accordance with all applicable state and local
laws, codes and regulations or will procure a valid waiver thereof. In further consideration,
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,
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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 agrees that it will employ fifty (50) full-time employees to operate the
new line of business described above to be conducted at the PROPERTY, provided, however,
that this number of employees may vary one way or another by a few employees as this
PROJECT nears the commencement of its operation.
5.2 OWNER agrees to retain sufficient employment levels to efficiently operate
and support its plant operations during the term of this Tax Abatement Agreement.
VI.
Default
6.1 In the event that (a) the IMPROVEMENTS for which an abatement has been
granted are not completed in accordance with this AGREEMENT or the expenditure for the
IMPROVEMENTS does not meet the amount required herein; or (b) OWNER allows its ad
valorem taxes owed the CITY to become delinquent and fails to timely and properly follow the
legal procedures for protest or contest of any such ad valorem taxes; or (c) OWNER materially
breaches any of the other terms and conditions of this AGREEMENT, then this
AGREEMENT shall be in default. In the event the OWNER defaults in its perFormance of
either (a), (b) or (c) above, then the CITY shall give the OWNER written notice of such
default and if the OWNER has not cured such default within sixty (60) days of said written
notice, this AGREEMENT may be modified or terminated by the CITY. Notice shall be in
accordance with paragraph 13.3. As liquidated damages in the event of default, and in
accordance with the requirements of Section 312.205 (a)(4) of the Property Tax Code of the
State of Texas, all taxes which otherwise would have been paid to the CITY without the
benefit of abatement, together with interest to be charged at the statutory rate for delinquent
taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all
penalties permitted by the Property Redevelopment and Tax Abatement Act and the Property
T� Code of the State of Texas, shall be recaptured and will become a debt to the CITY and
shall be due, owing, and paid to the CITY within sixty (60) days of the expiration of the
above-mentioned applicable cure period as the sole remedy of the CITY, subject to any and all
lawful offsets, settlements, deductions, or credits to which OWNER may be entitled. The
parties acknowledge that actual damages in the event of default and termination would be
speculative and difficult to determine.
VII.
Real and 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
4
as is estimated in the Property Taa�c Abatement Schedule attached hereto as Exhibit D. Said
abatement shall be an amount equal to one hundred percent (100%) of the taxes assessed upon
the completed value of the IMPROVEMENTS on January 1, of the year in which this taa�
abatement commences (i.e. January 1, 2014), with this tax abatement continuing at the
percenta�e rate shown in the attached Propertv Tax Abatement Schedule attached hereto, for
each year during the seven (7) year term of this AGREEMENT. This tax abatement shall be
implemented and enforced in accordance with all applicable state and local regulations or valid
waiver thereof; provided that the OWNER shall have the right to protest or contest any
assessment of the PROPERTY, and said abatement shall be applied to the amount of taxes
finally determined to be due as a result of any such protest or contest. For the purposes of this
AGREEMENT, the initial value of the existing property of the OWNER that is not subject to
tax abatement AND WHICH DOES NOT INCLUDE THE IMPROVEMENTS (as defined
herein) shall be deemed to be the values as shown on the tax rolls of the Lamar County
Appraisal District as of January 1, 2013, for Land, Buildings and tangible Personal Property,
which values are not known as of the execution date of this Agreement, but shall include the
same tax accounts held by OWNER with Lamar County Appraisal District as of January 1,
2012. This current abatement, which is the subject of this AGREEMENT, shall extend for a
period of seven (7) years beginning January 1, 2014.
7.2 The abatement granted herein shall be subject to and governed by the POLICY
STATEMENT CRITERIA AND GUIDELINES for TAX ABATEMENT, a copy of which is
attached hereto as Exhibit E. OWNER shall comply with the requirements of Exhibit E in the
performance of this AGREEMENT, save and except that, in the event of a conflict between
the requirements of Exhibit E and this AGREEMENT, this AGREEMENT shall control.
VIII.
No Conflict of Interest
8.1 The OWNER represents and warrants that neither the PROPERTY nor the
IMPROVEMENTS include any real or personal property that is owned or leased by a member
of the Planning and Zoning Commission of the City of Paris, nor by a member of the City
Council approving, or having responsibility for the approval of, this AGREEMENT.
IX.
Conditions
9.1 The terms and conditions of this AGREEMENT axe binding upon the parties
hereto and their successors and assigns.
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, 2014. The Asset Report will provide the
date on which the asset was capitalized, the acquisition amount, and the accumulated
depreciation amount. At the CITY'S request, the OWNER will provide actual invoices to
support the amounts shown on the Asset Report.
10.2 The OWNER further agrees that the CITY, its agents and employees, shall have
reasonable right of access to the PROPERTY to inspect the IMPROVEMENTS in order to
insure that the construction of the IMPROVEMENTS are in accordance with this
AGREEMENT and all applicable state and local laws and regulations or valid waiver thereof.
After completion of the IMPROVEMENTS, the CITY shall have the continuing right to
inspect the PROPERTY to insure that it is thereafter maintained and operated in accordance
with this AGREEMENT during the term of the AGREEMENT. All inspections will be made
only after giving the OWNER notice at least seventy-two (72) hours in advance and such
inspections shall be conducted in such a manner so as not to interfere with the operation of the
facility. Representatives of the CITY inspecting the PROPERTY and improvements shall be
accompanied by one (1) or more representatives of the OWNER and shall sign an agreement
promising to maintain the confidentiality of any information they obtain in connection
therewith except for the purposes of assessing and collecting ad valorem taxes and verifying or
enforcing compliance with this AGREEMENT. Said representative shall also be required to
observe any facility rule and regulation applicable to the PROPERTY. Nothing herein shall be
construed as limiting the CITY'S ability to perform inspections or to enter the PROPERTY
which is the subject of this AGREEMENT.
XI.
Initial and Annual Reporting
11.1 The OWNER further agrees that it will, within thirty (30) days of completion
of the IMPROVEMENTS, provide the CITY with a sworn report, written on OWNER'S
letterhead and signed by a designated representative of OWNER, which contains the following
information:
(a) A copy of the printout from the Lamar County Appraisal District showing
the market value of the PROPERTY prior to the construction of the
IMPROVEMENTS;
(b) Detailed description of the IMPROVEMENTS;
3
(c) A detailed description of any miscellaneous items of office equipment and
the actual cost of such added o�ce equipment;
(d) A 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) A detailed list of and the actual cost of added machinery and equipment;
( fl The actual cost of capital IMPROVEMENTS; and,
(g) The date of substantial completion of the IMPROVEMENTS as defined in
paragraph 3.1 hereof.
11.2 The OWNER further agrees that it will provide CITY with an annual, sworn
report which shall certify, in writing, that it is in compliance with each applicable term of this
AGREEMENT. Such annual report shall be furnished on the forms provided by the City.
11.3 In addition to the annual report required under Section 11.2 hereof, the
OWNER further agrees that it will provide CITY a copy of its Texas Workforce Commission
Employer's Quarterly Report within thirty (30) days of its filing of the same with the Texas
Workforce Commission.
XII.
Authority to Contract
12.1. This AGREEMENT was authorized by resolution of the City Council at its
regularly scheduled meeting on the 25`" day of February, 2013, authorizing the Mayor to
execute the AGREEMENT on behalf of the CITY.
12.2 This AGREEMENT was entered into by CAMPBELL SOUP SUPPLY
COMPANY LLC (PARIS PLANT) pursuant to the authority granted to the authorized official
whose signature appears below.
12.3. This AGREEMENT shall constitute a valid and binding AGREEMENT
between the CITY and OWNER when executed in accordance herewith, regardless of whether
any other taxing unit executes a similar agreement for t� 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.
7
13.2 This AGREEMENT, except by operation of law, shall not be assigned or
transferred by OWNER, without the prior written consent of CITY, which consent shall be at
the sole discretion of the CITY.
13.3 Any written notice required or permitted under the terms of this AGREEMENT
shall be given and be deemed to have been duly served if either (1) delivered in person, or (2)
deposited certified mail, return receipt requested, postage prepaid in the United States mail,
addressed to the designated representative of the respective parties which are designated as
follows:
OWNER:
CAMPBELL SOUP SUPPLY COMPANY LLC
Attn: Richard J. Landers, V. P.-Taxes
590 NW Loop 286
Paris, TX 75461-9016
With a coqv to:
Michael Caruso, Esq.
Campbell Place
Camden, NJ 08101
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a 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
of said AGREEMENT shall not be affected thereby, and to this end the terms and provisions
of this 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.
8
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 25`h day of February, 2013.
THE CITY OF PARIS, TEXAS
:
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
A. J. Hashmi, M. D., Mayar
CAMPBELL SOUP SUPPLY COMPANY LLC
I�
ATTEST:
Secretary
Richard J. Landers, Vice President —
T� & Real Estate
E
LIST OF EXHIBITS TO THIS AGREEMENT:
A= 2010 Designation of Enterprise Zone which includes OWNER'S PROPERTY
B= Drawings showing the building and the location of the IMPROVEMENTS within the
building
C= CITY'S Certifcate of Completion
D= Property Tax Abatement Schedule
E= CITY'S Guidelines and Criteria for Tax Abatements
10
EXHIBIT A TO TAX A.BATEIVZENT AGREEMEPiT
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EXHIBIT B TO TAX ABAT�MENT AGREENiENT
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EXHTBIT C T4 TAX A,BATEMENT AGREEM�NT
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CERTIFICATE OF COMPLETION
�`�11.1�� �Z�)�1 � �L` _I�F.y
COUNTY OF LAMAR
CITY OF PARIS
The City of Paris, Texas, has executed and delivered a Ta�c Abatement Agreement (ihe
"Agreement") dated February 25, 2013, with CAMPBELL SOUP SUPPLY COMPANY LLC, a
limited liabiIity company (the "Company"), for certain im.provements and other equipment (the
"Improvements") to be installed at the Company's pIant located in Paris, Lamar County, Texas,
as described in the Agreement, which plant is located within an ENTERPRISE ZONE
established by the United States Census in 20I 0.
The Company has complied with all of the terms of the Agreement, and the City of Paris
herein verifies that the Improvements agreed to be built, installed and used have in fact been
completed as provided for in the Agreement.
N4W THEREFORE, the City of Paris authorizes that the Property of the Company, as
described in the Agreement and in Exhibits A and B attached to the Agreement, shall receive a
tax abaiement of 100% of the taxes assessed upon the increased value of the Improvements so
insta.11ed, over the value in which the property was last determined as of January 1, 2013, for a
duration of seven (7) years, with the tax abatement for the Improvements beginning January 1,
2014.
APPROVED this day of , 20_.
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Kent McIlyar, City Attorney
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EXHIBYT E TO TAX ABATEMEN'T AGREEMENT
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CITY OF PARIS, TEXAS
POLICY STATEMENT
CRTTERIA AND GUIDELINES
FOR TAX ABATEMENT
T. General Purpose and Objectives.
The City of Paris, Texas (herein called the "City") is committed to enhancing the
competitiveness and the expansion potential af the City's manufacturing industry; ta attracting and
encouraging new manufacturing industry and investment; to improving the City and its
infrastrueture which attracts and supports development; and, to expanding the tax base,
ernployment opportunities, and the overall quality af life for its citizenry. Therefore, the City will
give consideration, on a case-by-ease basis, to providing tax abatement according to state law to
the owners of r�al praperty for projects which stimuiate economic growth and diversification in
the City.
Tax abaiement benefits may be made available to industrial, manufacturing, ciistribution,
and service faeilities currently in the Ciry or locating in the City if located in a designated
Enterprise Zona or Reinvestrnent Zone. New facilities and structures as well as the expansion
and modernizatian of existing facilities and strvciures, will be considered. Evaluation of a tax
abatement request wi11 be based on the infarmatian provided in the tax abatement appiication.
However, the City is under no o6tigation to provide tax abatement to any appiicant.
iI. Def nitions
a) "Abatement" or "abatement" means "tax abatement", which is the full or partial
exemption from ad valorerrt taxes of certain reaJ and tangible personal property in a
Reinvestment Zone designated for economic development purpases.
b) "Agreement" means the written agreement for tax abatement between a property
owner and/or lessee and the City.
c) "A�thorized Facility". A facility may be eligible for abatement if it is a
Manufacturing Facility, a Research Faeility, a Regional Distribution FaciJity, a Regional Tourist
Entertainment Facility or Oiher Basic Tndustry (al] of which terms are defined below); or if the
facility is a Historic Property defined in Section IV {b) below withir► a City oFParis Historicai
District.
d) "Base Year Value" meens the assessed valve of sligible property as of January 1,
preceding the date of execution of the agreement p7us the agreed upan value of eligible
proper[y improvements made after January I, bnt before the execution of the agreement. The
Base Year Value may be adjusted either up or down from year to year as per renditions by the
�,amar County Appraisal District.
e} "Employer" means the owner or lessee of Property who provides Jabs within the
Reinvestment Zone or within the Enterprise .Zone, applying for tax abatement.
�"Enterprise Zone" means an area of ]and designated as such under Chapter 2303 of
the Texas Government Code.
g) "3obs" or "alob" as used herein means a position of full-time employment for an
individnal to work 32 hours or more per week for an Employer, in which position the individuai
is provided the benefits normatly offered by the Employes, such as health insurance, vacation
time and some form of retirement benefit. A Job is nat a p�sition filleci far the Employer as a
worker or employee of an employment agency or service. "Jobs" as used herein incIudes "Full-
time Equivalent Jobs", as defined beiow.
h) "Full-time Equivalent 3obs" means a number ofpart-time jobs where the hours worked
in each such job is less than 32 hours per week, made available by nne Employer and added
together. For example, sixteen (l 6} 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 jab requires 32 hours of work or more per week), will equal eleven (1 i) Full-time
Bquivalent Jobs (352 hours divided by 32 hours per week equal 1 l). Full-tim.e Equivalent Jobs
do noi require the employee to receive benefits from the Employer.
i) "Manufacturing Faciliiy" means buildings and structures, including fixed machinery
and equipment, the purpose of which is or wili be the manufacture of tangibie goods or materials
or the processing of svch goods or materials by physical or chemical change. FaciJities
primariiy engaged in assembling component parts of manufactured products are also considered
manufacturing facilities.
j) "Modernization" means the replacement and upgrading of exisiing facilities which
increases the productive input or output, updates the technology, or substantially lowers the
unit cost of operation. Modernization may result from the consUuction, aiteration or
installation of buiIdings, structures, fixed machinery or equipment, but shall not be for the
purpose of reconditioning, refurbishing, repeiring, or deferred maintenance.
k) "Other Basic Industry" means buildings and stnzctures, including fnted machinery and
equipment, noi elsewhere described, used, or to be ased for the production of products or
services which result in tE►e creation of new Jobs and bring new wealth into the City.
]) "Personal Properry" means machinery, equipment, tools, shelving or materials eligible
under applicable law for tax abatement, whic6 can be removed from an authorized facility
described in Section IV (a) below.
m} "Property" means Rea� Property or Personal Property defined herein, as is applicabie
accordirtg to the context where used herein, that is eligible for tax abatement.
n) "Reai Property" means the land within an Enterprise Zone or a Reinvestment Zone,
together with aJ l improvements and fixtures constructed or otberwise situaied thereon.
o) "Regional Distribution Facility" means buildings and structures, including fixed
machinery and equipment, used or to be used primarity to receive, store, service, or distrihute
goods or materials where a majority of the goods or services are distributed to points at least ] 00
miles frorn its lacation in the City.
p) "Regional Tourist Entertainment Facility" means buildings and structures, including
fixed machinery and equipment, used or to be used in providing amusement/enteriainment
through the admission of the general public where the majority of users reside at Ieast 100 miles
from the City and where the majority of users are likeIy to stay in the City for more than one day
and vs�ill therefore likely utilize locai restavrants and hotet/moteI accommodations.
q} "Reinvestment Zone" is an area where the Ciiy or County has decided to infIvence
development pariems and attract major investments that wi11 contribute to the developmeni of the
area through the use of tax abatement for specified improvements.
r) "Research Facility" means buildings and siructures, including fixed machinery and
equipment, used or to be used primarily for research ar experimentation ta improve or develop
new tangible goods or materials or to improve ar develop the productian processes thereto.
s) "Tax Abatement Committee" means the corrtmittee of persons designated from time
to time by the Paris Economic Deve[opment Corporation to siudy, review and recommend tax
abatement to the applicable taxing entities in the community. 7fie Tax Abatement Committee
will be composed of one pers�n fram each of the City (the City Manager or designee}, the
County of Lamar {the County Iudge or designee}, Paris Junior Coilege (the President or
designee), the Chief Appraiser of the Lamar County Appraisa! District, and the Executive
Director of the Paris Economic Development Corporation.
ii1. Aesignation af 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 & 7"ax
Abatement Act, as amended �'I'exas Tax Cade Sec. 312.40i (b)).
For any area within the jurisdiction of the City to be eligible far 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 3] 2.
TV. '�'ax Abatemenf Aat6orized.
The City, through its Conncil, may agree in wriiing with the owner and/or lessee of
taxable Reai Properiy that is located in a Reinvestment Zone, but that is not in an improvement
project ftnanced by tax increment bonds, ta exempt from taxation a portion of t4�e value of the
Real Property, or of PersonaJ Property lor,ated on the Rea[ Property, or bath. The period of the
abatement granted under the agreement shal! not exceed the term authorized by Iaw. Such
agreement will be based on the condition that the owner or lessee of the Property makes
specif c improvements or repairs to the Property. An agreement may provide for the exemption
ofthe Rea1 Property in each year co�ered by the agreement onIy to the extent its value for that
year exceeds the Base Year Value. An agreement may provide for the exemption of Persona]
Property located on the Real Property in each year covered by the agreement other than Personal
Property that was located on the Real Property at any time before the period covered by the
agreemeni. Inventory or supplies cat�not be abated as Personal Property.
Tax abatement may only be granted for additional value of eligible Properiy
improvements made subsequent to and specified in an abatement agreement between the City and
the Property awner ar )essee subject to svch limitation as the City may require. The additional
vatue must exceed any reduction in the fair market value of other property of tt�e owner already
on the tax role with the jarisdiction ofthe City. Change in appraised value does not qua(ify for
abatement except in an instance where a previously vacant Authorized FaciIity is utilized. Value
added to the t� rolls must come from actuat capital expenditures.
The negotistion of ia�c abatement contracts wil] be conducted by the Paris Economic
Development Corporation, in conjunction with the City Mana�er or designee to the T'ax
Abatement Committee. 1n determining where and how tax abatement will be utilized, the Tax
Abatement Committee will examine the potential return on the public's investment. Return on
public investment will be measured in terms of (i} Jobs created, (ii) .Tobs retained in cases of
existing Employers within the City, and (iii) broadening of the tax base, and expansion of the
economie base.
A praperty owner and/or lessee shall be eligible for tax abalement on[y upon the
foflowing terms and conditions:
a) If the Property involved is an Authorized Facility.
b) If the Property involved is a Historic Property. In the City Historic Districts there are
certain eommercial and residentia� tax exemptions ailowed. Exterior improvements in the historic
districts are allowed at 100% for seven {'n years witii a minimum investment of $5,000 for
res'tdentiaJ pcoperty and $10,000 for commercial property. New residential construetion requires
a minimum invesirnent of $ i OQ,000 to be considered far a three (3) year 100% exemption. New
commercial construction requires a minimum investment of $200,000, for a 1 QO% tax exemption
for three (3) years.
c} If there wili be the creation of new value. Abatements may oniy be granted for the
additional value of eligible Real and Persona] Property impravements, subject to such
limi#ations as the City may require. Real Property tax abatement may be granted only fo the
extent that its value for each year of the agreement exc�eds its vaiue for the year in which the
agreement is executed.
d) If there will be new Authorized Facilities created, or if existing Authorized
Facilities wi!] be improved for purposes of modernization or expansion.
e) Eligible Praperty. Abatement may be extended to the vaiue of buildings, structures,
fixed machinery and equipment, site improvements, tangible personai property, and that office
space and related fixed improvements necessary to #he operation and administration of the
Authorized Facility; provided, however, that inventory or supplies shall nat be eligibJe for
abatement. EJigible property for which abatement may be granted includes nonresidentia] real
property and/or tangib)e persona! properiy not located on the rea] property at any [ime before the
abatement agreement becomes effective.
f} Leased Authorized Faciiities. If a ieased Authorized Facilify is granted abatement,
the agreement may be executed wiih #he lessor and/or lessee, depending upon the particular
cireums#ances of the pmposed project. If the agreement is with the lessor, lessor shall
cfemonstrate binding contracts with the [essee to guarantee comp3iance with the terms of the
agreement.
g) Value and Term of Abatement. The City wil! decide whether ta grant tax abatement
to an applicant, and the amount, if any, of such abatement, on a case-by-case basis and in
accordance with tltese Criteria and Guideiines. The term of abatement granted under any
agreement may not exceed that permitted by applicable staie law. The amount of the
abatement shall be based ugon a percentage {0 to 100%) of ail or a portion of the eligible praperty
within the Authorized Facility. Abatement may only be granted for the additional value of
eligible property improvements made pursuant to and listed in the agreement between the City
and property owner and/or lcssee subject to such limitations as the City may require, If a
modernization project includes the replacement of improvements within an Authori2ed Pacility,
the value eligible for abatement shall be the value of the new unit(s), less the value of the replaced
unit{s). The criteria that will be used in evaluating a particnlar applicafson for abatement will
include, but not be limited to:
I) The dollar amount of the increase in the tax roll for the proposed project;
2) The numher of Jobs created or retained by the Employer involved;
3) The posssble effect the proposed project wilt have on attraeting other taxable
improvements into the City;
4) The nature of the propased project and its overall effect on the City;
5) 17�e proposed project's effect on the safety, healtli, and morals of the City's
residents;
6) Whether the proposed project will have any substantial long-term adverse effect
on the provision �f City services or its tax base;
7) Whether the project meets atl relevant zoning requirements;
8) Wheiher the praject 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 rypes and vaIues of
public improvements to be furnished by the applicant.
h) Economic Qualif cation. In order ta be eligible to receive tax abatement, the
planned impravements:
1} Must be reasonably expected to increase the appraised vaiue of the Property;
2) Mast be expected to prevent the loss of empioyment, or the retention or
creation of Jobs in the City during the term of the agreement;
3) Should not be expected to solety or primarily have the effect of inerely
transferring existing employment from one part of the City to another
without demonstration of increased future investment (Dottars or Jobs) or
unusua] circumstances whereby wittsoUt such a move employment is liicely to
be raduced;
4) Must be necessary because capacity cannot be provided efficiently uiilizing
eaisting improved Property wben reasonable a)lowance is made necessary
improvements or relevant governmental actions.
i) Taxability. During the term of the agreement, taxes shalI be payable as fo[lows:
I) The Base Year of eligible property as determined each year by the Lamar
County Appraisai District shall be fully taxahle; and
2) The additional value of eligible property above the Base Yeat Value shall be
taxable in the manner described in the agreement.
The Chief Appraiser of the Lamar County Appraisal District shall annually determine an
assessment of the Rcal and Perso»al Property comprising the Reinvestment Zone. Each year, the
Empioyer, the company or individual receiving abatement pursuant to an agreement sha11 furnish
the assessor with such inforrnadon as may be necessary to determine the amount of any
abatement. Once such vaiue has been established, the Chief Appraiser shall notify the affected
jurisdictions which )evy taxes on such Property and the Paris Economic Deveiopment
Corporation.
Tl�e Employer, owner or lessee of eligible Properiy requesting tax abatement within a
Reinvestment Zone shali, prior to the comrrsencement of etigible property improvements, agree
to expend a designated sum of money and to create or retain a certain number ofJobs, or annual
payroll as further defined below.
V. Tax Abatement for Real Property; Creation of Johs:
Tax abatement may be made available to Employers creating Jobs with respect to an
Authori2ed Facility locatec! anywhere within the City or its extra territoriai jurisdiction based
on the folfowing:
a) To be eligible for any tax abatement, there must be a minimum capital investrnent in the
Authorized FaciIity of $250,000 and at ieast ten (10) new Jobs added to the Employer's labar
force, .
b) When an abatement percentage has been agreed upon it shall be granted for years
one (1) through three (3); ihereafier, 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 unti}
100% of the Reai Property valuation is added to the tax rolls.
c) Criteria for qualification for #ax abatement are as follows:
d) Any project with a capital investment of more than ten milfion dollars {$10,000,000),
accompanied by a newly created minimum annuaE payroll of two and one-haJf million dollars
($2,500,000), or creating more than two hundred twenty-five (225) Jobs will be individuaily
negotiated. No abatement wiil be granted for more t�ian specified in state law.
e) 1f a newly created bt�siness is Iocated or will locate within an Enterprise Zone, an
additional 10 to 20% abatement rt►ay be available as individually negotiated, with total
abatement not #o exceed l 0�°/a.
VT. Tax Abatement for Personai Property; Creation of Jobs:
The City recognizes a significani difference in the valuation of real property and
personal property. Because of depreciation scheduies, often the abatement of personat property is
basically a tax exemption. For this reason, the abatement schedule for personal property versus real
property is significantly different. iipersonal property should become obsolete and be replaced
while under an abatement agreement, the replacement personai property is not eligible for
abatement.
a) To be eligible for any tax abatement on Personal Property, there must be a minimum
capitai investinent of $250,000 in Personal Property and at ieast ten (] 0) new Jobs added to the
Employer's labor force.
b} When an abatement percentage has been agreed upon it shall be granted for years
one (1} through three (3); thereafter, there will be a 20% reduction in the original amount abated
beginning with year four (4) and a similar reduction of 20°/a in each of the next three years until
100% of the Real Property valuation is added to the taac roils.
c) Criteria for qvalification for tax abatement are as foltows:
d} Any project with a capital investrnent in personal property of more than #hree rnillion
dollars ($3,000,000), accompanied by a newly created rninimum annuaJ payroIl of two and one-
haff million dollars ($2,500,000}, or creating more than two hnndred twenty-five (225) new Jobs
wiii be indsvidaally negatiated. No abatement wi!} be granted for more than specified in state
iaw.
e) If a newly created business is located or v�rill locate within an Enterprise Zone, an
additional l0 to 20% abatement ma}� be available as individvally negotiated, with totaS
abatement not to exceed 100%.
VII. Tax Abatement for Exis#ing Emptoyers Regarding Real or Personal Property.
The City recognizes the value of its existing Employers to the well-being of the
community and desires to encourage e�isting 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 Authorixed �acility and has plans to improve such Property by constructing
new improvements on its Real Property and/or adding new Personal Property io it� Authorized
Facility which qualify for tax abatement under these Criteria and Guidelines, such Bmployer
may be eligible for tax abaiernent wi#h respect to snch improvements to its Real Property or its
new Personal Froperty under the provisions of Art'rcle V and N above, even if no new Jobs or
I�lewly Created Minirnum Annual Payroll are created. in these cases involving existing
Bmployers, the criteria for tax abatement for improvements to Real Property at Authorized
Facilities are identica3 io ihat set forth in Article V above (except that no new Jobs or Newly
Created Minimum Annual Payroll are required); and the criterza for tax abatement for new
Personal �'roperty added to Authorized Facilities are identical to that sef forth in Article VI
above (except that no new 3olss or Newly Created Minimum Annuai Payrotl are required). In
this regard, however, the Ciiy encourages existing Employers to retain as m�ny Jobs and as
much existing Annual Payroll as is ecanomically feasible for ttie existing Employer to do and
remain competitive in its industry.
VII�. 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 applscation to be forwarded by the applicant to the Executive Director of the
Paris Economic Development Corporation.
b) Form. The application shall consist of a completed application form accompanied by
the following items:
l) A general description of t.�e improvements to 6e undertaken together with the
projected new value to the Property and the type of business operation proposed;
2} A detaiied descriptive list of the improverrtents for which abatement is
requested;
3) A list af the kind, number, and laeation of all proposed improvements of the
Property;
4j A list of the number and type of Jobs created, including inforrriation
pertaining to anticipated job transfers;
5) A metes and bounds description and plat of the proposed Reinvestment Zone that
shows alJ roadways within 200 feet of the Reinvestment Zone and ali existing zoning and
land uses within 200 feet of the Reinvestment Zone;
6) A time schedule for undertaking and completing the proposed
imprvvements;
�) The type and value of any economic development incentives requested; and
8} Any other information about the proposed project as may be required by the City or
as deemed desirable by the City.
c) Review. Once the application has been received, the information submitted will be
reviewed by the Tax Abatement Committee for completeness and accuracy. The Cammittee will
then distribute the application to the appropriate department heads and taxing entities for review
and comment. In addition, no tax abatement application shall be considered for further
processing by the governmental entities unless f rst approved by tlie governing board of the
Paris Economic Deve�opment Corporation.
d} Pubiic Hearing. The City wi11 comply with certain public notices and hearings
required as mandated by state law under the Property Redevelopment and Tax Abatement Act
prior to the designation of a Reinvestment Zone and execution of a tax abatement agreement. The
City may adopt an ordinance designating a tax abatement Reinvestment Zone oniy af�er notice of
a pubtic hearing has been published at least se�en (7} days before the date of the hearing, and all
other procedural requirements of Chapter 312 ot'the Texas Tax Code have been satisfied.
e} Ffndings. In order to enter into an agreement, the City must find that the terms of the
proposed agreetnent comply with these Guidetines and Criteria, that there will be na
substantial adverse affeci on the provision of City services or tax base, and that the planned use of
the Property will not constitute a hazard to public safety, health or morals. Incident to approva] of
any ordinance designating a Reinvestment Zone, tEie City shaIt find that the improvements sougM
are feasible arid practical and would be a benefit to the land to be included in the Reinvestment
Zane and io the City afier the expiration of the agreerr�ent.
� Variar�ces. Req�esis for variance from the provisions ofthese Guide]ines may be
made in writing to tiie City; provided, however, that in no event shall the term of any
abatement exceed the period authorized by applicable state law. Such reguest shai( include a
complete description of Ehe circumstances requiring a variance. Approval of a request for
variance shail require the affirmative vote of three-fourths (3/4) of the members of the City
Council.
IX. Agreement.
A#ier approval, the City shall formaily pass an order or resolution and authorize the
execution of an agreement with the owner and/or lessee of the Authorized Facility which shall
include, but not be limited to the following terms:
a) The Base Year Value;
b) Percent of increased value to be abated each year;
c) The commencement date and the termination date of abatemeni;
d) Amount of investment and average number of jabs invoived during the term af the
agreement;
e) 1fie proposed use af the Authorized Faciiity, nature of constniction, time schedule,
plat, property description, and improvement Iist, as provided in the application;
� A listing of the kin@, number, locat'son, and cosis of afi proposed improvernents of the
Property;
g) A statement ]imiting the uses of the property consistent with the general purpose of
encouraging deveJopment or redevelopment of ihe Reinvestment Zone during the period
that property tax abatement is in effect;
h) That access to the project is provided to altow for the inspection by City inspeciors
and officials in order to ensure that the improvements or repairs are made according to
the speeifications and conditions ofthe agreement;
i) That property tax revenue lost as a result oFthe tax abatement agreement wili be
recapwred by the City if the owner of the Property fails to make the improvements or
repairs as provided by the agreemenf;
j} Each term agreed to by the owner of the Property;
k} A re�uirement that the owner af tiie Property shall ceriify annually to the City thai
the owner is in compliance with each app[ieable term of the agreement;
!} Contractual obligations in the event of defautt, violation of terms or conditions,
delinquent taxes, recapture, adminisEration and assignmeni, or other provisions that
may be required by state law, or in the discretion of the City Council; and
m) That the City may cancei or modify the agreement if the property owner fails to
comply witb the agreement,
X. Defanit.
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 shalI notify the company or
individual in writing at ttte address stated in the agreement, and if such default is not cured wiihin
a reasonable time specifted in such notice ("Cvre Period"), then the agreement may be modified
or ierminated without further notice. In the event the company or individual allows its ad
valorem taxes awed to the City to become deiinquent and fails to timely and properly follow the
legaJ procedures for their protest and/or contest, or vio{ates any of the terms and conditions af the
agreement and fails to cure during the Cure Period, the agreement then may be modified or
terminated without further notice, and the agreement may provide a formula for recapture of all
or part of the taxes abatcd. At any time before the expiration, any tax abatement agreement may
be terminated by mutual consenf of all parties involved in the same manner that ihe agreement
was executed.
XI. Confidentiality of Proprietary Informati�n.
Information that is provided to a taxing unit in connection with an application or requesr for
tax abatement under these Guide4ines and that desaribes the specific processes or business
aetiviiies to be conducted or the equipment or other property to be located on the Property for
which t� abatement is sought is confidential and not subjeet to public ciisclosure until the
agreement is executed. Such information in the custody of the City after the agreement is
executed is not confidEntial under these Guidelines.
XI.�. Proposed Tax Abatement Agreements to be decided on an Individual Basis.
The adoption of ihese Guidelines by the City does not limit the discretion ofthe City
Council to decide whether to enter into a specific tax abatemenf agreement, or ]imit the disaretion
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 oiher iegal right in any person or entity to have the Ciiy Council consider or grant a
specified application or requesi for tax abatement.
XIII. Inspections.
The agreement shall stiptalate that employees and/ or designated representatives ofthe City
will have access to the Reinvestment Zone during the term of the agreement to inspect the
Authorized Facility to deferrnine if the terms and conditions of the agreement are being met. All
inspections will be made only after the giving of at least twenty-four (24} hours' prior notice
and wiil only be conducted in such a mariner as to not unreasonably interfere with the
construciion and/or operation of the Authorized Facility. AlI inspections wi11 he made with one
or rnore representatives of the company or individual and in aecordance with its safety stanaards.
Upon completion of construction, the City shall annually evalvate each Authorized
Facilily receiving abatement to ensure compliance with the agreement and report possible
violations ofthe agreement to the City Council.
memo�andum
TO: Mayor & City Council
John Godwin, City Manager
FROM: Steve Gilbert, Paris Economic Development Corporation
SUBJECT: ABATEMENT REQUEST
CAMPBELL SOUP NEW SINGLE-SERVE JUICE LINE
DATE: February 25, 2013
BACKGROUND:
Pro'ect Metrics Descri tion
New Jobs Fifty (50) new full-time employees
New Capital Investment Equipment $22,846,511 (15 Yr. Useful Life)
Real Estate 1,376,301 (40 Year Useful Life)
Total $24,222,812
Campbell Soup will manufacture single-serve beverages in 5.5, 8.4, and 11.5-ounce aluminum
containers at their Paris Plant. The single-serve beverages will consist of red juices, Fusion,
potential for teas and potential for carbonated products.
Pro'ect Im rovement Descri tion
Engineering, Design & To prepare the site in the existing building where the new equipment will be located,
Construction including procurement of equipment, infrastructure and utilities modifications and
electrical and mechanical installation.
Building Modifications Includes floor, wall, and ceiling finishes, as well as some structural changes to the
building, to:
• Segregate the single-serve production from remaining manufacturing spaces.
• Provide a sanitary environment for the single-serve products.
• Support s ecific pieces of manufacturing equipment.
Container Delivery Depalletizer for purchased aluminum containers and dedicated container lines by
diameter to filling o eration.
Prep Operation Multiple ingredient handling systems and hold/pre-blend tanks, and independent
tomato aste standardization s stem.
Blendin O eration 1,000- allon blend tank, su orted b re-blend, hold and feed tanks.
Sterilization Process Shell-in-tube sterilizer and hot water sets, together with two plate and frame
sterilizers and hot water sets.
Filling Operation 103 Solburn waterfall filler and closer for 5.5 ounce and 8.4 ounce cans, and a 103
Solburn waterfall filler and closer for 11.5 ounce cans.
Coolin Process Pasteurizer to rovide for future carbonated ca ability.
Packaging Operation Pre-printed shrink film multi-packing equipment, a tray-packer and shrink tunnel; and
a palletizer; and stretch wra er equi ment.
The Paris EDC Board has approved the following cash incentives for this project:
STATUS OF ISSUE:
The effective date of this abatement agreement will be the 25t" day of February 2013. The tax
abatement will begin with the tax year commencing January 1, 2014, and expiring on December
31, 2020. The project complies with the abatement criteria, policies and procedures adopted by
all three local governing bodies (City, County and PJC).
BUDGET:
Campbell Soup will fund the capital improvements at a cost equal to or in excess of $24,222,812
including acquisition and installation of the building modifications, machinery and equipment,
and $2,000,000 in related expenses.
This is new capital investment and will not negatively impact existing property tax revenues.
Property tax revenue impact:
NLISD Taxes Realized (Years 1-7)
Taxes Realized by Jurisdiction (Year 8)
City of Paris
Lamar County
PJC
NLISD
Total
$1,479,625
$ 73,648
59,372
26,909
159,547
$ 319,476
RECOMMENDATION:
The Paris Economic Development Corporation recommends approval of the abatement request
as follows:
7 Year,100% Abatement Totaling $1,483,172