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18-Nomination of the James Skinner Co. as Enter Zone Projectmemo�andum TO: Mayor & City Council John Godwin, City Manager FROM: Steve Gilbert SUBJECT: NOMINATION OF THE JAMES SKINNER CO. AS ENTERPRISE ZONE PROJECT DATE: April 17, 2013 BACKGROUND: Paris has participated in the Texas Enterprise Zone program for several years. Kimberly Clarke is the most recent successful nomination to the Office of the Governor. The James Skinner Co. would like to seek an enterprise zone project designation for its new facility. This designation will permit certain refunds of STATE sales and use tax. No local sales taxes will be refunded. However, we expect the company will generate significant new sales ta�c revenues in years to come. The next deadline for submission to the Office of the Governor is June 3, 2013. STATUS OF ISSUE: Consider for May 13, 2013 consent agenda. BUDGET: No negative impacts. RECOMMENDATION: Support � RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS NOMINATING JS BAKIIVG, LLC PROJECT TO THE OFFICE OF THE GOVERNOR FOR ECONOMIC DEVELOPMENT AND TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS A QUALIFIED BUSINESS AND ENTERPRISE PROJECT UIVDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE; AUTHORIZING THE CITY OF PARIS TO PARTICIPATE IN THE TEXAS EIVTERPRISE ZONE PROGRAM; PROVIDIIVG TAX INCEIVTIVES; MAKING OTHER FINDIIVGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of PARIS (City) has previously passed Ordinance No. 2011-026 electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are the same on this date as were outlined in Ordinance No. 2011-026; WHEREAS, the Office of the Governor Economic Development and Tourism (EDC) through the Economic Development Bank (Bank) will consider JS BAKING, LLC wholly owned by THE JAMES SKINNER CO. as an enterprise project pursuant to a nomination and an application made by the City; WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), JS BAKING, LLC has applied to the City for designation as an enterprise project; WHEREAS, the City finds that JS BAKING, LLC meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. JS BAKING, LLC is a"qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located in an enterprise zone and at least twenty-five percent (25.0%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; and There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of JS BAKING, LLC as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. WHEREAS, the City finds that JS BAKING, LLC meets the criteria for tax relief and other incentives adopted by the City and nominates JS BAKING, LLC. for enterprise project status on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and 4. 3 WHEREAS, the City finds that it is in the best interest of the City to nominate JS BAKING, LLC as an enterprise project pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS: That the findings of the City and its actions approving this resolution taken at the council meeting are hereby approved and adopted. BE IT FURTHER RESOLVED that JS BAKING, LLC is a"qualified business", as defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the Act. BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date of designation of the enterprise project by the agency and terminate on June 3, 2018 or such date the agency requires. PASSED BY THE CITY COUNCIL of the City of PARIS this 13th day of May, 2013. (SEAL) A.J. Hashmi, M.D., Mayor THE STATE OF TEXAS COUNTY OF LAMAR I, of the City of PARIS, Texas do hereby certify that the above and foregoing is a true and correct copy of Resolution IVumber passed by the City of PARIS City Council on the this _ day of . 20_. (City Seal) Janice Ellis, City Clerk THE STATE OF TEXAS COUNTY OF LAMAR BEFORE ME, the undersigned authority, on this day personally appeared of the City of PARIS, Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed. GIVEN under my hand and seal of office this 13th day of May, 2013. (Notary Seal) Notary Public, State of Texas My commission expires: 4�