Downtown, TX



City of ParisRetail Economic Development PolicyGeneral Purpose and ObjectivesThe City of Paris is committed to the promotion and retention of high quality development in all parts of the city as part of an overall effort to improve the quality of life for its residents. Since this purpose can be served, in part, by the expansion of its commercial business, retail, and mixed use base, the City of Paris will give consideration to providing economic development grants, sales tax rebates, loans, and other incentives, such as tax abatements, as may be allowed by law as stimulation for selected economic development within the community. It is the policy of the City of Paris that consideration will be provided in accordance with the criteria set forth in this document. Nothing within this policy shall imply or suggest that the City of Paris is under any obligation to provide tax abatement or any other incentive or assistance to any applicant. All applicants shall be considered on a case-by-case basis.ApplicabilityThis Economic Development Policy establishes guidelines and criteria for economic development agreements, including possible tax abatement programs, under the provisions of Chapter 312 of the Texas Tax Code, and other economic grants, loans, or incentives as authorized by Chapter 380 of the Texas Local Government Code, the Development Corporation Act; Article 5190.6, Tex. Rev. Civ. Stat.; Article III, Section 52-a of the Texas Constitution; and other applicable laws.Economic Development Grants, Loans, and Other IncentivesSection I. Criteria Any application for economic development grants, loans, and/or other incentives shall be reviewed and approved or disapproved by the Paris City Council. In the review process, the council will, if applicable, consider the recommendations of the Lamar County Chamber of Commerce and/or the Paris Economic Development Corporation. In general, the application will be considered based upon the following:The value added to the community by the applicant’s proposed project;The sustainability of the project; andThe likelihood of the development of the proposed project occurring without grants and/or other incentives.B.Specific considerations for approving economic development applications will be based upon the degree to which the proposed project:Furthers the goals and objectives of the community as expressed in its comprehensive plan, master land use plan, and zoning ordinances; the master parks, recreation & open space plan; the Cox Field Planned Development District ordinance; the Lake Crook Planned Development District ordinance; the downtown redevelopment plan; any and all other adopted economic development plans and policies of the city and the PEDC; and any extant city infrastructure development plans and programs;Impacts the city’s costs and ability to provide existing and expanded municipal services; Impacts the local environment, housing market, and available infrastructure;Offers potential for long-term payback in tax revenues for the city’s participation; andLikely stimulates other desirable economic development within the city.In addition, priority shall be given to:Businesses that: 1) fill existing retail or service gaps; 2) reduce retail leakages; and/or 3) introduce new capital into the local economy from outside the city.Highly unique or specialized businesses that draw from an unusually large trade area, thereby bringing new capital into the local economy.Expansions of existing businesses that meet the above objectives.Section II. FundingFunds can be used for infrastructure, relocation, training, land acquisition, and other business necessities. Any such economic development grants, loans, or other incentives may come from any one or combination of the following:Grants or loans as authorized by Chapter 380 of the Texas Local Government Code;The general sales and use taxes of the City of Paris;Sales and use taxes of the Paris Economic Development Corporation paid by the actual development only;Hotel occupancy taxes paid by the actual development only; and/orAny other lawful source of revenue of the city including, but not limited to, bond or other debt financing which furthers the purpose of economic development.Section III. Development AgreementTo be eligible to apply and qualify for consideration of any grants, loans, or other incentives under this section, the applicant must submit documentation, and enter into a development agreement with the City of Paris, which ensures the following development within the city:A minimum of 60,000 new gross leasable or owner-occupied retail square footage all contained within one mixed use development containing any combination of: retail, residential, office and other commercial space; andThe project is reasonably expected to generate a minimum of $80,000 annually in sales and use tax receipts to the city.It shall be the goal of the city to negotiate said agreements as creatively as possible, such that:Each development shall pay for itself.The city shall receive, whenever feasible, direct, in-kind benefits from the developer that are designed to enhance Paris’s quality of life.Little or no funds are expended by the city in advance of development, but rather the develop-ment is funded from future returns on investment.The provision of wet utilities are specifically provided and/or planned for.Likely traffic pattern and traffic count changes are analyzed and accommodated so that no undue detriment to public safety results from the development.Section IV. ExceptionsThe city may utilize lower minimum thresholds for considering and approving development agreements in the following areas:Downtown.Cox Field Airport PD.Lake Crook PD.Sustainable mixed use developments.Other areas that may be identified.Tax AbatementsSection I. CriteriaAny application for an ad valorem tax abatement shall be reviewed and approved or disapproved by the Paris City Council. In the review process, the council will, if applicable, consider the recommendations of the Paris Economic Development Corporation and/or the Lamar County Chamber of Commerce. Considerations will be based on the same criteria as for development grants, as described above in “Economic Development Grants, Loans, and Other Incentives. Section 1. Criteria”, as well as a com-parison of the use of abatements to that of other potential incentives. Section II. Value of the AbatementThe amount of the abatement will be determined by the city council based on the merits of the project including, but not limited to, the factors referenced above, and the following specific economic considerations:total capital investment, in both real and personal property;added employment and types thereof; andgeneration of tax revenues, both direct and indirect.Abatements may be granted only for the additional value of eligible property improvements made subsequent to and listed in the executed tax abatement agreement. Target thresholds are established as expected qualifying levels for abatement consideration as indicated in paragraphs A and B as follows:New Businesses. The project must be reasonably expected to produce an added value of $2.5 million in real and personal property improvements within the City of Paris; or to create a minimum of 100 full-time jobs with an average annual salary of at least $35,000; or to generate annual sales tax revenues to the city of at least $80,000.Expansion or Modernization of Existing Businesses. The project must be reasonably expected to produce an added value of $1.5 million in real and personal property improvements within the city; or to create a minimum of 50 full-time jobs with an average annual salary of at least $35,000; or to generate additional annual sales tax revenues to the City of at least $50,000.Section III. Term of AbatementAn abatement may be granted for a maximum of ten years. The term of the abatement may be granted for a lesser number of years depending upon the anticipated value added to the city. The term of the abatement may also be changed in accordance with the Inspection and Inspection and Verification section of this policy if the applicant fails to comply with the terms of the contractual agreement for the abatement originally granted.Section IV. Inspection, Verification and Abatement ModificationThe City of Paris shall maintain its right to: (a) require the submission of an annual certification of compliance for the property receiving abatement; (b) conduct an on-site inspection of the project in each year during the life of the abatement to verify compliance with the terms of the agreement; and (c) reduce or eliminate the granted tax abatement if the applicant has failed to comply with the requirements of the abatement agreement.Section V. EvaluationUpon completion of the construction of any buildings, facilities, or other property improvements upon which the abatement is based, the city shall no less than annually evaluate each project receiving an abatement to ensure compliance with the terms of the agreement. Any incidents of non-compliance will be reported to all affected taxing units.Section VI. Severability and LimitationIn the event that any section, clause, sentence, paragraph or any part of this Tax Abatement Policy shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, such invalidity shall not affect, impair, or invalidate the remainder of the guidelines and criteria in this Tax Abatement Policy.Section VII. Expiration and ModificationThis Tax Abatement Policy is effective upon the date of its adoption and will remain in force for two years, at which time all reinvestment zones and tax abatement contracts created pursuant to its provisions will be reviewed by the city council to determine whether the objectives of the abatement program are being achieved. Based upon that review, this Tax Abatement Policy may be modified, renewed or eliminated. However, any contracts created pursuant to this Policy will remain in effect according to their respective contract terms without regard to any change to this Abatement Policy unless mutually agreed by the contract parties. Prior to the scheduled date for review, as defined above, this Tax Abatement Policy may be modified by a three-fourths vote of the city council, as provided for in Chapter 312 of the Texas Tax Code. ................
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