22 - TAX ABATEMENT AGREEMENT FOR PARIS LAKES MEDICAL CENTERItem No. 22
memorandum
TO: City Council
John Godwin, City Manager
FROM: Kent McIlyar, City Attorney
SUBJECT: Tax Abatement Agreement for Paris Lakes Medical Center
DATE: June 1, 2015
BACKGROUND: On December 8, 2014, the City Council created Reinvestment Zone No.
2014 -1 on 40 acres of land near the intersection of SE Loop 286 and FM 905 for the proposed
Paris Lakes Medical Center Project. Since that time, PLMC has obtained rezoning of the
property from Agricultural to Commercial and they have met with City Engineering staff to
discuss necessary public infrastructure improvements for the Project. PLMC has also had several
meetings with the Tax Abatement Committee to refine the scope of the proposed project and to
move forward with a proposed Tax Abatement Agreement.
Paris Lakes Medical Center, LLC ( "PLMC ") is requesting a ten (10) year tax abatement on
100% of the Improvements to be constructed on the 40 acre parcel located inside City of Paris
Reinvestment Zone No. 2014 -1. In order to receive the tax abatement, PLMC must invest a
minimum of $108,000,000.00 in the Project and complete construction of the following
Improvements no later than June 1, 2018:
A. An acute care hospital with at least 64 beds and a minimum of 170,000 square
feet of finished hospital space;
B. Medical Office Building No. 1 ( "MOB 1 ") with a minimum 60,000 square feet of
finished space to include: an ambulatory surgical center, radiology, physical
therapy and pathology capabilities and physician offices with related fixtures,
equipment, furniture and landscaping, parking and ingress and egress roads;
C. Medical Office Building No. 2 ( "MOB 2 ") with a minimum 60,000 square feet of
finished space, which will include: an oncology center and physician offices with
related fixtures, equipment, furniture and landscaping, parking and ingress and
egress roads;
D. Medical Office Building No. 3 ( "MOB 3 ") with a minimum 60,000 square feet of
finished space, which will include: a long -term acute care skilled nursing facility
and physician offices with related fixtures, equipment, furniture and landscaping,
parking and ingress and egress roads;
E. Medical Office Building No. 4 ( "MOB 4 ") with a minimum of 16,000 square feet
of finished space, which will include: an urgent care center, physician offices, a
leasing office and related fixtures, equipment, furniture and landscaping, parking
and ingress and egress roads;
If PLMC, fails to complete all improvements listed above by June 1, 2018, the tax abatement
will automatically drop down to seven -year tax abatement with standard scale percentage
abatement as set out in the chart below. In other words, if PLMC completes only a couple of
medical office buildings by June 1, 2018, the term of the Tax Abatement Agreement shall
automatically revert to a seven -year tax abatement at a lower percentage scale as set out below:
For Capital Investment ($1M minimum investment AND 10 jobs for new
employers.)
Amount of Investment
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
$1,000,000 to $5,000,000
70%
60%
50%
40%
30%
20%
10%
$5,000,001 to
$20,000,000
80%
70%
60%
50%
40%
30%
20%
$20,000,001 to
$25,000,000
90%
80%
70%
60%
50%
40%
30%
STATUS OF ISSUE: Upon City Council approval and execution of Tax Abatement Agreement,
PLMC will move forward with building permit approval and begin construction.
BUDGET: N/A
RECOMMENDATION: Motion to approve tax abatement agreement between City of Paris and
Paris Lakes, LLC.
Drag
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH
PARIS LAKES MEDICAL CENTER, LLC; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, on May 11, 2015, the City Council of the City of Paris, Texas adopted
Resolution No. 2015 -023 stating their intent to participate in tax abatement and adopting
guidelines and criteria for industrial /commercial tax abatement; and
WHEREAS, the City Council of the City of Paris has been presented a proposed
agreement by and between the City of Paris, Texas and Paris Lakes Medical Center, 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, On December 8, 2014, the City Council created Reinvestment Zone No.
2014 -1 on 40 acres of land near the intersection of SE Loop 286 and FM 905 for the proposed Paris
Lakes Medical Center Project. Since that time, PLMC has obtained rezoning of the property from
Agricultural to Commercial and they have met with City Engineering staff to discuss necessary
public infrastructure improvements for the Project.
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 meet the City's Guidelines and Criteria for Tax Abatement adopted by the City of
Paris by Resolution No. 2015 -023
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 is
hereby, in all things approved.
Section 4. That the Mayor is hereby authorized to execute the Agreement and all
other documents in connection therewith on behalf of the City of Paris substantially according
to the terms and conditions set forth in the Agreement attached hereto as Exhibit "A ".
Section 5. That the planned use of the property the subject of the tax abatement will
not constitute a hazard to public safety, health, or morals.
Section 6. That this approval and execution of the agreement on behalf of the City is
not conditioned upon approval and execution of any other tax abatement agreement by any
other taxing entity.
DULY PASSED AND APPROVED this 8th day of June, 2015.
A.J. Hashmi, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
THE STATE OF TEXAS )
COUNTY OF LAMAR )
TAX ABATEMENT AGREEMENT
This Agreement is entered into by and between the CITY OF PARIS, TEXAS, a
municipal corporation, situated in Lamar County, Texas, acting by and through its authorized
officer whose signature appears below (hereinafter called "CITY "), and PARIS LAKES
MEDICAL CENTER LLC, a Texas limited liability company, acting by and through its
Managing Member whose signature appears below (hereinafter referred to as "Owner ").
WITNESSETH:
WHEREAS, on December 8, 2014, following notice and a public hearing, the City
Council of the City of Paris, Texas enacted Ordinance No. 2014 -029 creating Reinvestment Zone
No. 2014 -1 on an approximately 40 acres of land inside the city limits of the City of Paris, Texas
as further described in a copy of said Ordinance attached hereto and incorporated herein as
Exhibit A in accordance with Chapter 312 of the Texas Tax Code; and
WHEREAS, on May 11, 2015, the City Council of the City of Paris, Texas approved
Resolution No. 2015 -023 reaffirming the City's intent 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,
WHEREAS, through Resolution No. 2015 -023, the City Council also approved and
adopted new Guidelines and Criteria for commercial and industrial Tax Abatement in the City of
Paris, Texas as required by the Property Redevelopment and Tax Abatement Act, Chapter 312,
Texas Tax Code; and
WHEREAS, Paris Lakes Medical Center, LLC, a Texas Limited Liability Company
( "PLMC "), is the Owner of the 40 acres included in Reinvestment Zone 2014 -1 and PLMC
intends to develop a minimum 64 -bed acute care hospital and four medical office buildings on
the Property as shown on concept drawing attached hereto and incorporated herein as Exhibit B
(hereinafter "Improvements "); and
WHEREAS, the Improvements to be constructed by Owner in Reinvestment Zone No.
2014 -1, in the capital amounts referenced in this Agreement and upon the Property (the
Improvements and the Property together herein called the "Project ") and the other terms hereof
are consistent with encouraging development of said Reinvestment Zone in accordance with the
purposes for which it was created and are in compliance with the City's policy on tax abatement
incentives and the ordinance creating such Reinvestment Zone adopted by the City and all
applicable laws; and
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EXHIBIT A
NOW, THEREFORE,
The Parties hereto do mutually contract and agree as follows:
I.
Term
1.1 This Agreement shall be effective upon the date last signed by all Parties to the
Agreement ( "Effective Date "), but the first year in which taxes may be abated under this
Agreement is 2016. The term of this Agreement shall be for ten (10) years, provided that Owner
complies with all terms and conditions in this Agreement. The Improvements to Owner's
Property will be eligible for tax abatement from January 1, 2016 until December 31, 2025 as
further detailed herein.
II.
Area to be Improved
2.1 The Project will be constructed on forty (40) acres of land owned by PLMC and
located inside the boundaries of Reinvestment Zone No. 2014 -1. All of the land is located
entirely within the city limits of the City of Paris, Texas, and is depicted in the Final Plat
attached hereto and incorporated herein as Exhibit C. The Improvements to be constructed by
the Owner creating the Project will consist o£ (a) a minimum 64 -bed acute care hospital, (b)
four medical office buildings, and (c) all of the hospital and medical machinery, equipment,
computers, furniture, fixtures, beds and infrastructure necessary to enable the Improvements
described in (a) and (b) above, to be used for the purposes for which they are intended. The
Improvements upon which taxes will be abated will be constructed at the locations on the land
shown in the concept drawing attached hereto as Exhibit B.
III.
Improvements
3.1 The construction of the Improvements will require design and supervisory
architectural and engineering services and construction work, and the procurement of hospital
and medical machinery, equipment, computers, furniture, fixtures, beds, infrastructure and
utilities (together called the "fixtures ") to open the businesses and services and to operate them
for the purposes intended. Owner will build and develop a first -class acute care hospital,
medical office buildings, and other related facilities on the land located inside City Reinvestment
Zone No. 2014 -1 to provide hospital and other related medical services to the citizens of Paris,
Lamar County, Texas.
3.2 The Improvements to be constructed as a part of this Project are described in more
detail as follows:
A. A for profit acute care hospital with at least 64 beds and a minimum of 170,000
square feet of finished hospital space;
B. Medical Office Building No. 1 ( "MOB 1 ") with a minimum 60,000 square feet of
finished space which will include: an ambulatory surgical center, radiology,
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physical therapy and pathology capabilities and physician offices with related
fixtures, equipment, furniture and landscaping, parking and ingress and egress
roads;
C. Medical Office Building No. 2 ( "MOB 2 ") with a minimum 60,000 square feet of
finished space, which will include: an oncology center and physician offices with
related fixtures, equipment, furniture and landscaping, parking and ingress and
egress roads;
D. Medical Office Building No. 3 ( "MOB 3 ") with a minimum 60,000 square feet of
finished space, which will include: a long -term acute care skilled nursing facility
and physician offices with related fixtures, equipment, furniture and landscaping,
parking and ingress and egress roads;
E. Medical Office Building No. 4 ( "MOB 4 ") with a minimum of 16,000 square feet
of finished space, which will include: an urgent care center, physician offices, a
leasing office and related fixtures, equipment, furniture and landscaping, parking
and ingress and egress roads; -
3.3 A Minimum of ONE HUNDRED AND EIGHT MILLION and No /100
DOLLARS ($108,000,000.00) will be invested by OWNER in the
Improvements which will be eligible for tax abatement under this
Agreement, including, but not limited to: the Hospital, Medical Office
Buildings, other Medical Facility buildings and taxable personnel property to
furnish and equip the Hospital and other Medical Facilities described in this
Agreement. All Improvements referenced above shall be completed by June
1, 2018 or Owner shall be in default of this Agreement; provided, however,
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, fires, explosions,
accidents, floods, and labor disputes or strikes unless caused by acts or
omissions of Owner.
Owner will not be in default of this Agreement if all Improvements described
herein are completed and in receipt of a certificate of occupancy from the
City of Paris, Texas on or before June 1, 2018. Should Owner unilaterally
decide to add an extra wing or an extra floor to the Hospital or to one of the
Medical Official Buildings, after timely completing the Improvements
described herein that will not cause a default under this Agreement.
3.4 All Improvements shall be described and detailed in the Owner's signed and
sworn report prepared after the completion of each building referenced above,
including any taxable personal property, machinery, equipment or other fixtures
which are included in the building. The report shall be furnished by Owner to City
in format referenced in Article X herein. A copy of the completion report shall
also be filed with the Chief Appraiser of the Lamar County Appraisal District.
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IV.
Consideration
(Improvements)
4.1 Owner agrees and covenants that it will diligently and faithfully, in a good and
workmanlike manner, pursue the completion of the Improvements as provided in this
Agreement. As a good and valuable consideration for this Agreement, Owner further covenants
and agrees that all construction of Improvements will be in accordance with applicable state and
local laws, codes and regulations, or Owner will procure a valid waiver or variance therefrom.
In further consideration, Owner further agrees that from the date that the 64 -bed acute care
hospital is completed until the expiration of this Agreement, Owner or Owner's agent, lessee or
assignee shall continuously operate and maintain an acute care hospital on the Property to serve
the citizens of Paris, Lamar County, Texas and the surrounding region. Should Owner, or
Owner's authorized agent, lessee, tenant, successor or assignee ever close or suspend operations
of the acute care hospital on the Property during the term of this Agreement, except during a
period of "force majeure," without written approval from the City as authorized by a Resolution
of the Paris City Council, then Owner shall be in default of this Agreement and the provisions of
Article V will apply.
V.
Default
5.1 If (a) all the Improvements referenced in this Agreement are not completed in
accordance with terms and conditions of this Agreement by June 1, 2018; or (b) Owner fails to
make the minimum $108,000,000.00 capital investment in the Improvements by June 1, 2018;
or (c) 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 (d) Owner materially breaches any of the other terms, provisions or conditions of this
Agreement, then Owner shall be in default of this Agreement.
5.2 In the event the Owner defaults in its performance of either (a), (b), (c) or (d)
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 Owner's receipt of said written notice, this
Agreement may be modified or terminated by the City. Notice shall be in accordance with
paragraph 12.3 herein. As liquidated damages in the event of default, and in accordance with
the requirements of Section 312.205 (a)(4) of the 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, and 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 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
subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may
be entitled.
M
VI.
Real and Personal Property Tax Abatement
6.1 Subject to the terms and conditions of this Agreement, and subject to the rights
and holders of any outstanding bonds of the City, one hundred percent (100 %) of the ad
valorem property taxes assessed upon the Improvements and otherwise owed to the City for
the tax years 2016 through and including 2025 shall be abated. Said abatement shall be one
hundred percent (100 %) of the taxes assessed upon the completed value of the Improvements,
as they are completed from year to year during the term of this tax abatement, minus the
value of the Property appraised as of January 1, 2015 (which is the "base year value" for the
purposes of this Tax Abatement Agreement). Subject, however, to Owner's rights to protest
such value of Improvements and cause it to be adjusted as is provided for under the applicable
laws of the State of Texas. The ad valorem taxes assessed against the Project described herein
shall continue to be abated at 100% of their assessed value for each year of the ten (10) year
term of this Agreement (i.e. calendar years 2016 through 2025). This tax abatement shall be
implemented and enforced in accordance with all applicable state and local laws and
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 40 acres of land (the "Property ") which is not subject
to tax abatement is Three Million Dollars ($3,000,000.00) which represents what Owner paid
for the land prior to commencing the Project. The years for which ad valorem taxes will be
abated regarding the Project will begin on January 1, 2016, and shall end on December 31,
2025, but this Agreement shall be effective from and after the Effective Date as stated herein.
The full amount of taxes assessed by the Lamar County Appraisal District against the Property
effective January 1, 2015, are not abated and shall be paid by Owner. Subject to Section 6.2
below, this tax abatement is effective for taxes that would be assessed against Improvements to
the Project over the 10 -year period from the Effective Date of this Agreement through tax year
2025.
6.2 In the event Owner fails to complete all Improvements as described in
Article III of this Agreement and attached Exhibits by June 1, 2018, including final
inspection and receipt of a Certificate of Occupancy from the City of Paris, the
percentage tax abatement on all Improvements provided for under this Agreements shall
automatically drop down to a scale tax abatement, as set out in Article V of the City of
Paris' Guidelines and Criteria for Tax Abatement (capital investment only, no iob
creation consideration) and the years of tax abatement shall be reduced from ten (10)
years to seven (7) years total.
6.3 The abatement granted herein shall be subject to and governed by the
Guidelines and Criteria for Tax Abatement, a copy of which is attached hereto as Exhibit D.
Owner shall comply with the requirements of Exhibit D in the performance of this Agreement,
save and except that, in the event of a conflict between the requirements of Exhibit D and this
Agreement, this Agreement shall control.
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VII.
No Conflict of Interest
7.1 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.
VIII.
Conditions
8.1 The terms and conditions of this Agreement are binding upon the parties hereto
and their successors and assigns.
8.2 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 the
City, its elected officials, officers, agents and employees harmless therefrom. It is further
understood and agreed among the parties that the City, in performing its obligations hereunder,
is acting independently, and the Owners 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.
IX.
Compliance Provisions
9.1 Owner agrees that the City, its designated officials, officers, employees and /or
agents shall have the reasonable right of access to all records (or copies of records) concerning
the Owner's investment in the Property and Improvements for the purpose of conducting a tax
abatement compliance review. Within sixty (60) days of receipt of written request from City,
Owner shall provide the City or its designee with a detailed Asset Report containing a list of
assets placed into service at the Project since the Effective Date of this Agreement. 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.
9.2 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 and
Improvements to insure that it is thereafter maintained and operated in accordance with this
Agreement during the term of the Agreement or any extensions thereof. All inspections will
be made only after giving the Owner written notice of the forthcoming inspection 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 construction and operation of the Project. Representatives of the
City inspecting the Project shall be accompanied by one (1) or more representatives of the
6
Owner and the City inspectors will observe any facility rule or safety regulations applicable to
the Property or Improvements. Nothing herein shall be construed as limiting the City's
authority or right to enter the Property and Improvements to perform other inspections, such
as: site inspection, building inspection, fire inspection, code enforcement inspection or any
other review or inspection required by state law or city ordinance.
X.
Initial Report and Annual Reporting
10.1 Owner agrees that it will, within sixty (60) days of completion of any
Improvements to the Property, provide the City with a completion report, written on Owner's
letterhead signed by the Owner, Owner's Chief Executive Officer or Chief Financial Officer,
which includes the following information:
(a) Detailed description of Improvements completed to date, including spreadsheets
providing specifics of Owner's capital investment in those Improvements;
(b) A detailed description of any fixtures, furniture, equipment, machinery or other
taxable personal property added to the Property and the actual cost of said
personal property;
(c) A copy of the building plans and specifications for all constructed Improvements,
fixtures and the location of the same for inspection by City's tax abatement
compliance review team;
(d) The actual cost of all capital Improvements and any documents necessary to verify
the actual cost of Improvements; and,
(e) The appraised value of the Improvements as of date of completion;
(f) The date of substantial completion of each building or facility on the Property
which is subject to this tax abatement agreement.
(g) A copy of the printouts from the Lamar County Appraisal District showing the
appraised value of the Property prior to the construction of any Improvements and
prior to the effective date of this Agreement;
10.2 Beginning January 31, 2016, and on or before January 31St of each year
thereafter, throughout the term of this Agreement, Owner, or Owner's Chief Executive Officer
or Chief Financial Officer shall sign and swear out an Annual Compliance Report, in a form to
be approved by City, which states that Owner is in compliance with each applicable term of
Tax Abatement Agreement as of the date of the Report. City shall have sixty (60) days to
review the information provided in the Annual Compliance Report and request additional
information or documents from Owner before accepting or rejecting said report. If City rejects
the Report as incomplete or inaccurate, Owner shall have sixty (60) days to correct and
resubmit the Report or Owner shall be considered in Default of this Agreement.
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XI.
Authority to Contract
11.1. This Agreement was authorized by resolution of the City Council at its
regularly scheduled meeting on the 8a' day of June, 2015, authorizing the Mayor to execute the
Agreement on behalf of the City.
11.2 This Agreement was entered into by Owner pursuant to the legal authority
granted to the authorized official whose signature appears below.
11.3. 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.
XII.
Legal
12.1 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.
12.2 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.
12.3 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:
Paris Lakes Medical Center, LLC
c/o Mr. Ron Parker
2675 NE Loop 286
Paris, TX 75460
CITY:
CITY OF PARIS, TEXAS
Attn: City Manager
P. O. Box 9037
Paris, TX 75461 -9037
With a Copy to:
Michael Mosher, Attorney
50 North Main Street
Paris, Texas 75460
With a Copy to:
City Clerk
P.O. Box 9037
Paris, Texas 75461 -9037
12.4 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
8
12.5 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.
12.6 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.
Executed as of the dates provided below.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
THE CITY OF PARIS, TEXAS
A.J. Hashmi, M.D., Mayor
Date:
PARIS LAKES MEDICAL CENTER, LLC
(A Texas limited Liability Company)
By: WildCreek Inv Corp
(A Texas corporation), Managing Member
Date:
Ron Parker, President
E
LIST OF EXHIBITS:
A - City of Paris Reinvestment Zone No. 2014 -1.
B. - Concept Drawing of Paris Lakes Medical Center Project
C. - Plat of Paris Lakes Medical Center
D. - Guidelines and Criteria for Tax Abatement adopted May 11, 2015.
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ORDINANCE NO. 2014 -029
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
DESIGNATING A CERTAIN AREA WITHIN THE CITY OF PARIS, TEXAS, MORE
PARTICULARLY DESCRIBED IN EXHIBIT "A" ATTACHED HERETO, AS
REINVESTMENT ZONE NO. 2014 -1 FOR TAX ABATEMENT; DESCRIBING THE
BOUNDARIES THEREOF' ORDAINING OTHER MATTERS RELATED THERETO
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris, Texas, ("City"}, desires to promote
the development or redevelopment of a certain contiguous geographic area within its jurisdiction
by the creation of a reinvestment zone for tax abatement, as authorized by V.T.CA. Tax Code
Chapter 312 (referred to as the "Property Redevelopment and Tax Abatement Act" or the "Act');
and,
WHEREAS, the City Council held a public hearing on December 8, 2014 to consider the
creation of a Reinvestment Zone, such date being at least seven (7) day's after notice of the
public hearing was published in The Paris News; and,
WHEREAS, notice of the public hearing was delivered to all taxing units overlapping
the territory inside the proposed reinvestment zone; and
WHEREAS, at the public hearing, the City invited all interested persons to appear for or
against the creation of tax abatement inn the proposed reinvestment zone.proposed reinvestment zones
and the concep
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
SECTION I. The facts and recitals contained in the preamble of this ordinance are
hereby found to be true and correct.
SECTION 2. The Paris City Council, after conducting a public hearing, receiving
evidence and testimony from all persons wishing to be heard, hereby makes the following
findings and determinations:
(a) That a public hearing on the adoption of the Reinvestment Zone has been properly called,
held and conducted and that the required notice of such hearing has been given to the
public and to all taxing units overlapping the territory inside the proposed reinvestment
zone;
(b) That the boundaries of the area of the reinvestment zone shall be the area described in
Exhibit "A" which is attached hereto and incorporated herein by reference;
Page 1 of 3
EXHIBIT A-
(c) That the creation of the reinvestment zone for tax abatement with boundaries as described
in Exhibit "A" will result in benefits to the City and to the land included in the
Reinvestment Zone and the improvements sought are feasible and practical;
(d) That the Reinvestment Zone, as described in Exhibit "A ", satisfies the criteria for the
creation of a Reinvestment Zone as set forth in Section 312.202 of the Act, because it is
reasonably likely that as a result of the designation the area will contribute to the retention
or expansion of primary employment or will attract major investment in the reinvestment
zone that would be a benefit to the property and that would contribute to the economic
development of the City of Paris; and
(e) That the reinvestment zone as defined in Exhibit "A" meets the criteria for the creation of a
reinvestment zone as set forth in the City of Paris Guidelines and Criteria for Tax
Abatement.
SECTION 3. Pursuant to Chapter 312 of the Property Redevelopment and Tax
Abatement Act, the City Council of the City of Paris hereby creates and designates a
reinvestment zone for commercial and/or industrial tax abatement encompassing the area as
described and depicted in Exhibit "A" which shall be known as Reinvestment Zone 2014 -1 of the
City of Paris, Texas.
SECTION 4. The term of Reinvestment Zone 2014 -1 shall be for a period of five (5)
years and may be renewed for successive five -year terms.
e
SECTION 5. To be eligible for tax abatement within City of Paris Reinvestment Zone
No. 2014 -1, a project shall:
(a) Meet the standards set forth in the City of Paris Guidelines and Criteria for Tax
Abatement;
(b) Be located wholly within the reinvestment zone as established herein;
(c) Not include property that is owned or leased by a member of the City Council of the
City of Paris or by a member of the City Planning and Zoning Commission;
(d) Conform to the requirements of the City's Zoning Ordinance and all other applicable
laws and regulations pertaining to commercial development.
SECTION 6. All agreements for abatement of taxes within Reinvestment Zone No.
2014 -1 shall comply with Section 312.205 (a) of the Act.
SECTION 7. All provisions of the ordinances of the City of Paris, Texas in conflict with
the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of
the City of Paris not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Page 2 of 3
SECTION S. The repeal of any ordinance or part of ordinances affected by the
enactment of this ordinance shall not be construed as abandoning any action now pending under
or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty
accruing or to accrue, or as affecting any rights of the municipality under any section or
provisions of any ordinance at the time of passage of this ordinance.
SECTION 9. That it is the intention of the City Council of the City of Paris that this
ordinance and every provision hereof, shall be considered severable, and the invalidity or partial
invalidity of any section, clause, or provisions of this ordinance shall not affect the validity of any
other portion of this ordinance.
SECTION 10. This Ordinance shall become effective from and after its passage and
publication as required by law.
PASSED AND ADOPTED this 8th day of December, 2014.
A77UT:
'ce Ellis, City Clerk
APPROVED AS TO FORM:
t
-�;a
W. Kent Mc ity Attorney
Matt Frierson, kayor
Page 3 of 3
Database: ib Stone_Umar_PR_2009004�14 Instrument #: 119346 _ _ Vdume: 2014 Page: 119346.04
..
119346 -2014 10!09/2014 02:373 PM Page 4 of 8
Metes and Bounds DMription
40.00 Acres
Being a 40.00 an 68011 of land, titamed within the corporate limits of *e City of Faris. County of
Lamar, Stabs ofTwas, beiag a part of the Jaepb Lewin Survey. Abstract Nndw $24, and also bring
part of two tracts of lend conveyed from 71modow L. McLarwn to Theodore MdAwwo Family
partnership Two Ltd on May 2, 2002 and recorded as Tlraet 1, a called 62.43 wit tract and Tract 4, a
"Had 3035 Mae tract ht vohtmt 1 192, Page 240 of the Rta1 Frnpaty Records of Lamar CotMtty Texas.
Me said 4000 acre tact fully described by own and bounds as follows:
Beginning d a'/, inch c%VW bon rod at In the West boundary line oftheafarememtioned M¢Lanote
Tract Four, said rod also being in the Bast right ofway line of Farm to Market Road Number 905;
7bom N 01019'SS" W. along the West boundary Use of the, of eeraeationed Mclaum Tract Four
WW the 131st right of way lime of Farm to Market hand Number 905, at a distance of 495A feet passing a
'ti into iron and found insure of Ma in on pipe found at tlw Natthweat corner ofthne aAfoaemeerioned
Mamwre T nd Four, acid rod also being the Southwest comet of the afea madioned called 62.43 sae
MdAftwe Tud 1, and continuing on alepg the Wast boundwy fine of Said MdAmore Tract Four and
the East right of Way lino cf Farm to Market Road Number 90S a total distamx of 1,161.17 foot t0 a
broken oancam rigbi of way monument found in the Bast right of Way lino of Famm to Market ROAd
Number 905 at TXDOT Station Number 155+00;
Thence N 04020'S2" E, along the West bounduy line of the sibromuntioned MoLanore Tied I and
the Eest right of way In ofFatm to Matimt Road Number 905, a distance of 200.92 feat to a broken
soma+% right of way monument found at TXDOT Station Number 1 S34W,
Thanes N 00°S 1'40" W, along the War boundary line of the aforrmenrtloned 1WAmoro Tract 1 and
rite Brat right of way lane of Fsrm to Market Road Number 905. a diatanoc of 93.01 feat to a braless
concrete right of way monument found at 7XDOT Station Number 363+129 of Loop 236;
Thence N 10°35'21" E, abog the West boundary tint of the afonmemtioned McU mole Tract 1 and
the East right of way One o4 Loop 286, a distance of 324.42 feet to a brokeo conWe right of way
monument found at TXDOT Smtion Number 360+00 of Loop 286, said monurront also being at the
beginning of a curve m the Lett having a Radius of 1, 982.86 feet and a Ceatmd angle of 7°56'46
Thencc $long said turvt to the left a disance of 275.00 fort (cbord bearing and distance of
N 02 04646" 13.274.76 &00 a point from which s, % job iron rod found bears N 70°4459" W, 034
feet and a bmkcn ootnaete right of way monument found bears N 01 °12'04" W. M distance of O.S1 fed,
said point also being the most western Northwest corner of the aforementioned MdAmom 7hd 1 and the
Southemst corner of a called 1.634 acre tract of I n d wwgcd froth Rd== L,ysm Howell to Donald IL
Howc l on Dccember 1, 1999 and mmdtd a Tract 1 in volume 62, page 53 of the Real Properly Records
of I.am ar County Texas;
Tbenee S 7V44'Sr E, along the common boundary line of the aforementioned WlAmore Tract i,
and the sfommemioned Howell Vast a distance of 199.50 fed to a % inch iron rod found at the Southeast
oamw of said Howell tract;
7bam N 01 64233" W, along the casmmon bMwdKy line of the aforementioned Mcl eamore Traot 1,
and *0 aforanmtkmed Hcrarell ttsd a distance of 415.71 foot to a ins inch iron rod found at the Northeast
corm of said Howell but said rod also being boded in the South boundary Iles of a called iS acre
(save and erupt 3.67 acre) tract of htud eoavgW from Shelly Ptucella Otwotl to Daniel L. Fleming and
pug 100 rvu l BIT "Art
Page 4of4
Database: iixStone Lamar PR 2001r9w2U4 Instrument #: 119346 V01ume: I014 Page: 119346.05
119346 -2014 10/00014 02:37:53 PM Page 5 of 6
Debrns Fleming om March 22, 2010 and rocorded in Law County Ck&'e DocumentNumber 07733&
2010;
TLenoa N 88°SI'28" 7v, along the Nordn boundary Uw of die afmremadko d MdAMM TAW led
the South boundary lips of the afaea ft ticeed Fkn ft tact st a dis moe of 77.15 feet pasahq a'K inch
iron rod found as witness and condnaing on fora toter diatanoe of 10909 fed tD a point in the antar ine
of Big Sandy Oak said point also being the NoMmmat comer of a called 13.780 acre tact of had
coavrayed from Nolan D. *Way and wife Dona L. Wbaley to Debra A. Fleming and hvAwW Daniel L
Fleming oa FeMuay 3, 2010 and recorded in Lamar County Ckrk's Doenwatt Number 076084 -2010;
Thence along the oadediat of Big Sandy Creek, and along the common bounday ILme oft*
aforementioned Mci,emm Tan 1 and the aforementioned Flaming cat fed 15.780 acre tram the following
calls: S 53029'20" E 92.14 fat, S 60°00146" E 21.71 feet, S 78°04'41" E $4.49 feat, S 58°27'55" E
49932 feet, S 66 040'43" E 35.87 feet, S 80021120" E 23.77 fed, S SS'57' 16" E 39$0 feet,
S 47027'14" E 42.43 faak S 12430'46" E 4728 feet, S 15 014139" E 18.72 fed, S 12 °31'36" W 77.28 feet;
'[Leant S OVSO'SS" % at a distance of 55.95 fed passing a % inch capped loop rod set as wieners, sad
CaNinulM on for a total dislanoe of 954.93 feet to a % inch capped iron rah set;
Throne N 84 006'27" W, a distance of 70.73 feet to a 100D Nail fiumd;
Thane S 59°42136" W, a distance of f I I A feet to a 100D Nail found;
Thence S 630S4' 14" W, a distance of 19330 feet to a 1001) Nail focned;
Thence S 33058'42" W, a distance of 228.67 fat to a 1001) Nail found;
Thence S 2215'37" % at a distance of 91.86 feet passing the South boundary line of the
aforementioned McLemore Tract 1 and du North boundary line of the skrementioned McLeanoro pact
4, and continuing on for a total distance 6f227.69 feet to a 1001) W1 found;
7iunce S 52022108" A a distance of 197.04 feet to a I OOD Nail found;
Thence S 01 ° 19'55' A psralkl with the Fast right of way of Farm to Market Road Number 90S a
distance of 251.75 feet to a Va inch capped inn and se;
Thence S 88 °40'05" W, a distance of 65222' to the Point of Beg%ning and eortaWq 40.00 aces of
rand.
The Reference Rearing fa the tenet of land described bercon is NAD 1983 Tew State Phu Coordinate
Systan Zone 4202.
1, KEVIN K. WHIn", REGISTERED PROFESSIONAL LAND SURVEYOR, s1S892, STATE OF
TEXAS, HEREBY CEXT R Y THE ABOVE IS TAM FROM MEASUREMENTS MADE UPON
THE GROUND AND WAS COMPLETED ON SEP ITsM ER 16.2014.
"Y�l &A mIo..Lwi
KEVIN K. WHI •Y, RPLS DATE
Page 2 of 2
Page 5 of 5
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I. KEVIN K. WNIT,EY. REGISIEREO PROFESSIONAL IANDSURVEYOR XSe92
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BLOCK A
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$ F_INAL PLAT
PARIS LAKES MEDICAL
*' CENTER LLC ADDITION 34
i �, City of Pens, Lamar County, Texas
E X H� g F eye / 40.00 Acres
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M —ter a
Owner / Developer: PARIS LAKES MEDICAL CENTER LLC.
RON PARKER, PRINCIPAL,,,,e
2675 41st SE, PARIS, TX 75460
903- 674 -2047
PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5- 11 -15)
9. An additional 20% abatement for new job creation is available based on the following requirements:
a. A project that creates a minimum of 10 new jobs.
b. The new job wages are equal to or greater than the current County average wage for all private sector jobs
excluding retail trade and accommodation and food services ($41,158 annually for 2013. Source: Texas
Workforce Commission via www.tracer2.com. (Note: This represents 547 companies, 10,470 jobs and 56% of
all private sector employment in Lamar County.)
c. The taxing jurisdictions and the company must agree to include measuring, tracking and annual reporting of the
net job increases (existing jobs plus new jobs) for the entire term of the abatement agreement.
For Net New Jobs (New Job Creation and Retention of Existin Jobs
Net New Jobs
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
1. 10 new jobs minimum.
*20%
20%
20%
20%
20%
20%
20%
2. New job wages = or > average annual
wages for private sector jobs in Lamar
County. (Excluding mail, accommodations, food
service. See hem 9.b. above.)
3. Agee to maintain existing base and new
jobs during the entire term of agreement.
4. *Year 1 cannot exceed 100 %.
VI. Tax Abatement for Existing Industry/Employers Regarding Real or Personal
Property.
The Taxing Jurisdictions recognize the value of Existing Employers to the economic well -being
of the City and County. The Taxing Jurisdictions desire to encourage existing employers to
maintain and grow their facilities inside the City and County, grow their employment base and
payroll and remain competitive and successful in their respective industry.
Accordingly, if an existing employer (as opposed to a newly created business or industry
moving into the Taxing Jurisdictions), owns or leases an authorized facility and has plans to
improve such property by constructing new improvements on its real property and/or adding
new personal property to its authorized facility which qualify for tax abatement under these
Policies, Criteria and Guidelines, such employer may be eligible for tax abatement with respect
to such improvements to its real property or its new personal property under the provisions of
EXHIBIT L
PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5-11-15)
Article V above, even if no new jobs or newly created minimum annual payroll are created.
Recognizing the importance of Existing Industry and job retention, the Taxing Jurisdictions
may individually negotiate tax abatement agreements with Existing Industry/Employers outside
of the eligibility criteria and matrix set out in Article V above; provided, however, no tax
abatement may exceed a ten-year term as provided by state law.
ITTY A Prnnaee
♦ AA. La ua.wu
S
Eligibility
Any present or potential owner of taxable property in the Taxing Jurisdictions may request tax
abatement by filing a written request with the City Manager, County Judge, or PJC President, with
a copy of the application forwarded by the applicant to the Executive Director of the Pans EDC.
Form
The application shall 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 of the improvements for which abatement is requested.
3. A list of the kind, number, and location of all proposed improvements of the property.
4. A list of the number and type of jobs created, including information pertaining to anticipated
job transfers (if any).
5. A metes and bounds description and plat of the proposed reinvestment zone that shows all
roadways within 200 feet of the reinvestment zone and all existing zoning and land uses
within 200 feet of the reinvestment zone.
6. A time schedule for undertaking and completing the proposed improvements.
7. The type and value of any additional economic development incentives requested.
8. Any other information about the proposed project as may be required by the Taxing
Jurisdictions or as deemed desirable by the Taxing Jurisdictions.
Review
1. All applications will be initially reviewed by members of the Tax Abatement Advisory
Process
Committee.
2. An initial project briefmg meeting will be conducted between the company's representatives
and the Tax Abatement Advisory Committee.
3. The Committee will evaluate the request for tax abatement in accordance with these criteria
and guidelines and will make its recommendation to the Paris City Council, Lamar County
Commissioners Court and Paris Junior College Board for their review and approval.
4. After the Paris City Council has been briefed on the proposed tax abatement offer and they
have directed the Committee to move forward, the Paris City Attorney will draft the initial
tax abatement agreement for review by the Tax Abatement Committee, the PEDC Board and
representatives of each Taxing Jurisdiction.
5. Electronic versions of the City's abatement agreement will be provided to the County and
PJC so all agreements have consistent language, terms and conditions.
6. Following Tax Abatement Committee review of the draft agreement, it will be sent to the
applicant's legal counsel for review and comment. Any changes requested by the tax
abatement applicant will be reviewed and considered by the Committee and City Attorney.
7. Once the Agreement is finalized, it will be placed on the PEDC Agenda for review and
action by the PEDC Board.
8. Once the Tax Abatement Agreement has been formally approved by the PEDC Board, the
Agreement shall be forwarded to the Paris City Council, Lamar County Commissioner's
Court and Paris Junior College Board of Regents for final consideration and action.
Public
1. The Taxing Jurisdictions will comply with certain public notices and hearings required as
Hearing
mandated by state law under the Property Redevelopment and Tax Abatement Act prior to
PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5- 11 -15)
VIII. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terns and conditions to be included in any formal tax
abatement legal agreement.
IX. Amendments to Policies, Criteria and Guidelines
These Policies, Criteria and Guidelines are effective for a two (2) year period from the date of
their adoption, unless amended earlier by the affirmative vote of three- fourths (3/4) of the
members of each governing body (City, County, PJC).
For a tax abatement application or additional information contact:
Paris Economic Development Corporation
1125 Bonham Street
Paris, Texas 75460
Phone: 903- 784 -6964
Fax: 903 - 784 -2503
Website: www paristexasusa.com
Email: parisedcO— paristexasusa.com
the designation of a reinvestment zone and execution of a tax abatement agreement.
2. The lead Taxing Jurisdiction (typically the City of Paris) may adopt an ordinance designating
a tax abatement reinvestment zone only after notice of a public hearing has been published at
least seven (7) days before the date of the hearing, and all other procedural requirements of
Chapter 312 of the Texas Tax Code have been satisfied.
Findings
In order to enter into an agreement, the Taxing Jurisdictions must find that:
1. The terms of the proposed agreement comply with these Policies, Criteria and
Guidelines.
2. There will be no substantial adverse effect on the provision of Taxing Jurisdictions' services
or tax base.
3. That the planned use of the property will not constitute a hazard to public safety, health or
morals.
4. Incident to approval of any ordinance designating a reinvestment zone, the Taxing
Jurisdictions shall find that the improvements sought are feasible and practical and would be a
benefit to the land to be included in the reinvestment zone and to the Taxing Jurisdictions
after the expiration of the agreement.
Variances
Requests for variance from the provisions of these Policies, Criteria and Guidelines may be made
in writing to the Taxing Jurisdictions; provided, however, that in no event shall the term of any
abatement exceed the period authorized by applicable state law. Such request shall include a
complete description of the circumstances requiring a variance. Approval of a request for
variance shall require the affirmative vote of three- fourths (3/4) of the members of each of the
Taxing Jurisdictions' governing body.
Proposed
The adoption of these Policies, Criteria and Guidelines by the Taxing Jurisdictions does not limit
Agreements
the discretion of the Taxing Jurisdictions' governing bodies to decide whether to enter into a
Decided on
specific tax abatement agreement. Nor does it limit their discretion to delegate to their employees
Individual
the authority to determine whether or not the Taxing Jurisdiction should consider a particular
Basis
application or request for tax abatement, or create any property, contract, or other legal right in any
person or entity to have the Taxing Jurisdiction consider or grant a specified application or request
for tax abatement.
VIII. Abatement Agreement Terms and Conditions.
Appendix B provides many of the terns and conditions to be included in any formal tax
abatement legal agreement.
IX. Amendments to Policies, Criteria and Guidelines
These Policies, Criteria and Guidelines are effective for a two (2) year period from the date of
their adoption, unless amended earlier by the affirmative vote of three- fourths (3/4) of the
members of each governing body (City, County, PJC).
For a tax abatement application or additional information contact:
Paris Economic Development Corporation
1125 Bonham Street
Paris, Texas 75460
Phone: 903- 784 -6964
Fax: 903 - 784 -2503
Website: www paristexasusa.com
Email: parisedcO— paristexasusa.com
PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5- 11 -15)
APPENDIX A
Abatement or Tax
The full or partial exemption from ad valorem taxes of certain real and tangible personal
Abatement
property in a Reinvestment Zone designated for economic development purposes.
Agreement or
The written legal agreement for tax abatement between a property owner and/or lessee and
Agreements
the City of Paris, Lamar County and Paris Junior College.
Authorized
A facility may be eligible for abatement if it is a facility used for manufacturing, research,
Commercial or
regional distribution, regional services, regional tourist entertainment, other basic industry, or
Industrial Facility
any primary jobs creating industry (see definitions below). All authorized facility definitions
include buildings and structures, including fixed machinery and equipment used in operating
the facility.
Authorized
The City Council of the City of Paris may also designate areas of the City where residential
Residential Facility
properties may be considered for abatement of City taxes only. The City of Paris will
approve their residential abatement policies, criteria and guidelines separate from these
policies.
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 primarily engaged in assembling component parts of manufactured products
are also considered manufacturing facilities.
Regional
Used primarily to receive, store, service, or distribute goods or materials where a
Distribution
majority of the goods or services are distributed to points at least 100 miles from its
Facility
location in the Taxing Jurisdictions of Paris and Lamar County.
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 Taxing Jurisdictions and
Entertainment
where the majority of users are likely to stay in the Taxing Juri-dictions for more than
Facility
one day and will therefore likely utilize local restaurants and botel/motel
accommodations.
Research
Used primarily for research or experimentation to improve or develop new tangible
Facility
oods or materials or to improve or develop the production processes thereto.
Other Basic or
Not elsewhere described, used for the production of products or services which result in
Service
the creation of new jobs and bring new wealth into the Taxing Jurisdictions (e.g.
Industry
healthcare- related industries).
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.
Base Year
The assessed value of eligible property as of January 1, preceding the date of execution of the
Value
agreement plus the agreed upon value of eligible property improvements made after January
1, but before the execution of the agreement. The Base Year Value may be adjusted either up
or down from year to year as per renditions by the Lamar County Appraisal District.
Employer
The owner or lessee of property, who is applying for tax abatement and who will provide
jobs and capital investment within the Reinvestment Zone or within the Enterprise Zone.
Reinvestment
An area where the Taxing Jurisdictions have decided to influence development patterns
Zone
and attract major investments that will contribute to the development of the area through
the use of tax abatement for specified improvements. These statues are found in
Chapter 312 of the Texas Tax Code.
Enterprise Zone
An area of land designated as such under Chapter 2303 of the Texas Government Code.
Job or Jobs
A "job" is when an individual works 40 hours per week for an employer, and in the
position the individual is provided the benefits normally offered by the employer, such
as health insurance, vacation and some form of retirement benefit. A job is not a
position filled for the employer as a worker or employee of an Mployment agency or
PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5- 11 -15)
emplo yment service. "Jobs" also includes "Full -time Equivalent Jobs" defined below.
Full-time
The intention of the governing bodies is to provide a company the maximum flexibility in
Equivalent
running their business and making business decisions, especially related to staffing. The
(FlT) Jobs
following definition of FTE will be reflected in all incentive agreements. An FTE is:
I . An individual working 40 hours per week in a job defined above.
2. A number of part-time jobs where the hours worked in each such job is less than 40
hours per week, made available by one employer and added together to total 40 hours
per week. For example, fourteen (14) part -time jobs made available by one
employer where all such part-time jobs added together require a total of 380 hours of
work per week (but no such part-time job requires 40 hours of work or more per
week), will equal nine and one -half (9.5) FTE jobs (380 hours divided by 40 hours
per week equals 9.5).
3. FTE jobs do not require the employee to receive benefits from the employer.
Modernization
The replacement and upgrading of existing facilities, which increases the productive
input or output, updates the technology, or substantially lowers the unit cost of
operation. Modernization may result from the construction, alteration or installation of
buildings, structures, fixed machinery or equipment, but shall not be for the purpose of
reconditioning, refurbishing, repairing, or deferred maintenance.
Personal
Machinery, equipment, tools, shelving or materials eligible under applicable law for tax
Property
abatement, which can be removed from an authorized facility,
ProperV
Real Property or Personal Property defined herein that is eligible for tax abatement.
Real Property
The land within an Enterprise Zone or a Reinvestment Zone, together with all
improvements and fixtures constructed or otherwise situated thereon.
Tax Abatement
The Tax Abatement Advisory Committee will be convened from time to time by the
Advisory
Paris Economic Development Corporation to study, review and recommend tax
Committee
abatements to the applicable Taxing Jurisdictions in the City of Paris and Lamar
County, Texas. The Tax Abatement Advisory Committee will be composed of one
i
person from each of the Taxing Jurisdictions: the City of Paris (the City Manager or
designee), the County of Lamar (the County Judge or designee), Paris Junior College
(the President or designee), the Chief Appraiser of the Lamar County Appraisal
District, and the Executive Director of the Paris Economic Development Corporation.
Recommendations from the Tax Abatement Advisory Committee shall be decided by
majority vote of the representatives from the three taxing entities referenced above.
PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5- 11 -15)
APPENDIX B
Abatement Agreement Terms and Conditions
After approval, the Taxing Jurisdictions shall formally pass an order or resolution and authorize
the execution of an agreement with the owner and/or lessee of the authorized facility, which
shall include, but not be limited to the following terms and conditions:
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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
agreement.
5. The 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
property tax abatement is in effect.
8. That access to the project is provided to allow for the inspection by Taxing Jurisdictions'
inspectors and officials in order to ensure that the improvements or repairs are made
according to 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 Taxing Jurisdictions if the owner of the property fails to make the improvements or
repairs as provided by the agreement.
10. Each term agreed to by the owner of the property.
11. A requirement that the owner of the property shall certify annually to the Taxing Jurisdictions
that the owner is in compliance with each applicable term of the agreement.
12. Contractual obligations in the event of default, violation of terms or conditions, delinquent
taxes, recapture, administration and assignment, or other provisions that may be required by
state law, or in the discretion of the Taxing Jurisdictions' governing body.
13. That the Taxing Jurisdictions may cancel or modify the agreement if the property owner
fails to comply with the agreement
Default
If the Taxing Jurisdictions determine that the person or entity receiving an abatement is in default
according to the terms and conditions of its agreement, the Taxing Jurisdictions shall notify the
company or individual in writing at the address stated in the agreement, and if such default is not
cured within a reasonable time specified in such notice ( "cure period "), then the agreement may
be modified or terminated without further notice. In the event the company or individual allows
its ad valorem taxes owed to the Taxing Jurisdictions to become delinquent and fails to timely
and properly follow the legal procedures for their protest and/or contest, or violates any of the
terms and conditions of the agreement and fails to cure during the cure period, the agreement then
may be modified or terminated without further notice, and the agreement may provide a formula
for recapture of all or part of the taxes abated. At any time before the expiration, any tax
abatement agreement may be terminated by mutual consent of all parties involved in the same
manner that the agr Bement was executed.
Confidentiality
Information that is provided to a Taxing Jurisdiction in connection with an application or request
of Proprietary
for tax abatement under these Policies, Criteria and Guidelines, and that describes the specific
Information
processes or business activities to be conducted or the equipment or other property to be located on
the property for which tax abatement is sought is confidential and not subject to public disclosure
until the agreement is executed. Such information in the custody of the Taxing Jurisdictions after
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PARIS, TEXAS ECONOMIC DEVELOPMENT CORPORATION
POLICY STATEMENT
GUIDELINES AND CRITERIA FOR TAX ABATEMENT
(Updated 5- 11 -15)
11
the agreement is executed is not confidential hereunder.
Inspections
The agreement shall stipulate that employees and/ or designated representatives of the Taxing
Jurisdictions will have access to the reinvestment zone during the term of the agreement to inspect
the authorized facility to determine if the terms and conditions of the agreement are being met. All
inspections will be made only after the giving of at least twenty -four (24) hours' prior notice
and will only be conducted in such a manner as to not unreasonably interfere with the
construction and/or operation of the authorized facility. All inspections will be made with one or
more representatives of the company or individual and in accordance with its safety standards.
Upon completion of construction, the Taxing Jurisdictions shall annually evaluate each authorized
facility receiving abatement to ensure compliance with the agreement and report possible
violations of the agreement to the Taxing Jurisdictions governing bodies.
Modifications
At any time before the expiration of an agreement made under these Policies, Criteria and
of Agreement
Guidelines, the agreement may be modified by the parties to the agreement to include other
provisions that could have been included in the original agreement or to delete provisions that
were contained in the original agreement. The modification must be made by the same
procedure by which the original agreement was approved and executed. The original agreement,
however, may not be modified to extend the term of the agreement or the term of the abatement
granted therein beyond the time rmitted by State law.
Assignment
An agreement may be assigned to a new owner or lessee of the authorized facility only with the
prior written consent of the Taxing Jurisdictions. Any assignment shall provide that the
assignee shall irrevocably and unconditionally assume all the duties and obligations of the
assignor upon the same terms and conditions as set out in the agreement, and the Taxing
Jurisdictions' approval shall be subject to the determination of the financial capability of such
assignee. Any assignment of an agreement shall be to an entity that contemplates the same
improvements or repairs to the property, except to the extent such improvements or repairs have
been completed. No assignment shall be approved if the assignor or the assignee is indebted to
the Taking Jurisdictions for ad valorem taxes or other obligations, or if any event of default
under the a eement remains uncured.
Administration,
1. The Paris EDC shall be primarily responsible for the administration, review, and monitoring
Contract
of tax abatement agreements authorized by the Taxing Jurisdictions under these Policies,
Review,
Criteria and Guidelines. These responsibilities shall include annually verifying participants in
Monitoring and
tax abatement agreements are in full compliance with the terms of the agreement.
Reporting
2. The Paris EDC shall expeditiously advise the Taxing Jurisdictions in writing of any
instances of contract non - compliance by tax abatement participants. In addition, the Paris
EDC shall, on an annual basis, conduct a performance review of the activities of each tax
abatement participant and report the findings of such review to the leadership and governing
bodies of each taxing entity.
3. The Taxing Jurisdictions' governing bodies shall retain the right to independently review and
audit the activities of tax abatement participants, and shall be responsible for enforcement of
the terms of any tax abatement agreement authorized hereunder.
4. Annually the Paris EDC will report to each of the governing bodies on its monitoring and
compliance activities and the status of all existing abatement agreements.
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