One of the key factors we see in healthy, growing communities is a strong sense of public unity and oneness in vision for the whole region. This holds true to make positive steps in economic development. When the Paris Economic Development Corporation (PEDC) hired our company, Retail Attractions, one of my first comments to the PEDC board members was how refreshing it is for us to work with a community where everyone "is pulling in the same direction." As we all know this has not always been the case in Paris, Texas. At the January 2011 community-wide strategic planning session, I saw first hand, evidence of a new energy and a clear sense that the whole community was involved in efforts to make Paris a world class city. 

My first few meetings in Paris were with a consortium of public officials, chamber members, real estate brokers, city councilors, tourism professionals, and private business representatives. There was a sense that every person in the room desired to have the same results ... improving the image, marketability and overall quality of life for the citizens of Paris. There are always differences of opinion because of the myriad of personalities involved. However, it is very important to capture the vision of what Paris could become if all of the collective dreams of its citizens could be realized. We see a lot of cities who make the mistake of relying too much on what we were in the past, instead of facing the reality of what they must do in the present, and dreaming of what they could become in the future.

Obviously, Retail Attractions is working toward a specialized goal with PEDC, the City and County - attracting retail development to Paris, Texas. After completing a comprehensive retail market assessment, and selling Paris for the past year, I want to outline what we observe as two major hindrances (challenges, barriers) to success.

One of the most important factors for any retailer in developing new market sites is "time to market." That is why it is so important for cities to have a streamlined development process that moves deals through the various development functions (platting, zoning, plan review, permitting, licensing, inspections, etc.) as quickly as possible. Paris must insure timely, responsive and business friendly local government services.

1. When a community is a victim of controversy and political feuding, development stops. For example, in Tulsa, Okla., fighting between the mayor and city council has stopped development activities for the past two years. The simple truth is that investors do not want to risk their investment capital when unstable community politics are guaranteed to cause delays. Obviously, no smart business person wants to be caught in the middle of local politics and put their investment at risk. The Paris City Council is headed in a very positive direction. Let's hope Lamar County government can make positive strides towards cooperation.

On the positive side, we believe retail development is key to the city of Paris' future in a number of ways:

2. Foremost, new retail development generates sales tax revenue and increases the ad valorem tax base.

3. Every retail deal and restaurant we can recruit to Paris increases the regional draw. The regional draw increases the consumer base, and the city's revenues continue to grow.

4. Correspondingly, as the regional consumer draw increases, more and more retailers will be attracted to the market.

5. Outside consumers who bring their spending (and the tax revenue) to Paris are special people because they come and go, make purchases and spend their money, but they do not consume city services. They don't use police, fire, emergency services, water, sewer or other utilities. They make the pie grow bigger.

6. Although retail is a key part of increasing the regional draw, cultural and conference center events also bring in people and out-of-area revenue. The Chamber and the Visitors and Convention Council must continue their efforts to stimulate visitors to Paris.

7. Last but not least, many smart cities have discovered that upscale recreational uses - youth individual and team tournament competitions, concerts, and art and cultural "fairs" and festivals - draw big revenues into city coffers. Not just retail, but visitors also put "heads in beds" helping local hotels and generating more financial support for the Visitors and Convention Council of the Chamber.

On behalf of the Paris community, Paris' retail potential is being broadcast to the global retail community by our company. The economy and much slower corporate growth strategies, along with greater competition for the smaller number of retail deals around the country has had a tremendous impact on retail growth.

No longer is Paris competing with Bonham and Greenville and Sulphur Springs ... now its Paris vs. Frisco, Southlake, Sherman, McKinney, Rockwall, etc. It is doubly important now to have all the support we can get from every sector of the community.

Five years ago, retailers like Target and Kohls would never have taken a second look at Paris. They are looking at you now and eventually we are going to pull them into the local economy. There is no need for panic, but there is a great need for patience and tenacity. PEDC hired Retail Attractions for a reason and we know what we are doing. It took six years to bring retail to a city (Owasso, Okla.) that had everything retailers wanted to see, in a time when financing was easy and when retailers across the brand spectrum were in growth modes unparalleled in history.

It is a fact the city of Paris has multiple retail growth "nodes." However the Lamar Avenue and Northeast Loop 286 corridor is the primary retail node and will continue to be so in the future. This corridor will remain the primary retail base for Paris because Paris Towne Centre (formerly Mirabeau), Walmart, and other national tenants create synergy that other retailers want to tap into.

The recent announcement of four new stores to locate in a new development at Paris Towne Centre is great news, and shows that our efforts are bearing fruit. Around the community there are other groups of retail tenants in various places at intersections where goods and services are conveniently located. The west side of the city holds some retail potential around the intersection of Bonham Street and Loop 286, as well as in the donwtown area.

The real world scenario in retail recruitment, especially with the national tenants, is how to get on the short list of the growth and development plans for new units. There are 43,300 zip codes across the country competing for the new sites. The majority of those zip codes have larger populations than Paris, more disposable income than Paris, and they are growing from year to year (Paris/Lamar county population growth has been flat for the past few years).

In order to combat these issues and make Paris attractive to the national retailers and restaurants, the city of Paris has to put together a deal the retail decision makers simply cannot ignore. Together we must finalize a plan to incentivize retail deals that moves Paris up the list. There are many ways to do that, but the one thing to keep in the forefront of our thinking is that the very worst scenario imaginable is to promise a retailer or restaurant a deal and not be able to produce what we promised. I have included a short list of common types of retail development incentives we have seen work in other markets.

To close, my team at Retail Attractions stands ready to help educate the citizens of Paris in any capacity we can, whether in public meetings or privately with small groups. Knowing the facts always helps build support and confidence. The important thing is to have a clear vision and a united effort to reach the pinnacle of what Paris, Texas can become.

Finally, it has been one of the pleasures of my career to work with the leadership and staff of PEDC, the city of Paris and Lamar County. We continue to be at your service as we sell the advantages and opportunities to do business in Paris, Texas.

Common Retail Development Incentives

The following provides an overview of the most commonly used types of retail development incentives.

Tax Increment Financing (TIF): A public financing method which has been used for redevelopment and community improvement projects in many countries including the United States for more than 50 years. With federal and state sources for redevelopment generally less available, TIF has become an often-used financing mechanism for municipalities. Similar or related approaches are used elsewhere in the world. TIF is a tool to use future gains in taxes to finance current improvements. The improvements will create those gains. When a public project such as a road, school, or a large retail development is carried out, there is often an increase in the value of surrounding real estate, and perhaps new investment (new or rehabilitated buildings, for example). This increased site value and investment sometimes generates increased tax revenues. The increased tax revenues are the "tax increment." TIF dedicates tax increments within a certain defined district to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development might not otherwise occur. TIF creates funding for "public" projects that may otherwise be unaffordable to localities. Currently, thousands of TIF districts operate nationwide in the U.S. Texas State Law clearly outlines the requirements to set up a TIF.

Payment in Lieu of Taxes (PILOT or PILT): Is made to compensate a local government for some or all of the tax revenue that it loses because of the nature of the ownership or use of a particular piece of real property. As an incentive for investment in taxable infrastructure or other facilities that create a public benefit, a PILOT may be negotiated to limit or defer the property taxes on a developer, striking a balance between public and private economic needs. In effect, the local taxpayers are subsidizing the commercial development, which might otherwise have gone elsewhere.

Sales Tax Rebate to Developer for Costs of Public Improvements: Sales tax rebates are incentive monies returned to the developer of a retail project for the actual costs of public improvements constructed in the project. (This is the most common method, in my experience.)

Local Retail Development Incentives Fund: Incentives support the expansion of existing retail businesses and the recruitment and development of new retail businesses. Many cities have established Retail Development Incentives Funds administered by an overseeing local entity. The funds are used exclusively for retail projects which are relocating to, or expanding within the corporate limits of the city, and which are projected to generate new retail sales, which in turn raise new sales taxes. Eligible recipients of these incentives are any retailer, any developer, or any owner of retail property in the city. The funds are generally discretionary funds and may be used only to support an expansion or location which would otherwise not likely happen without an incentive offer. Eligible projects include, but may not be limited to: 1) Road improvements, including turning lanes, traffic lights, resurfacing, lowering of grades, new extensions, and intersection improvements; 2) Drainage improvements, including culverts, piping, and impoundment structures; 3) Utility extensions.

No retail development incentive can be effective and no payment made until a written contract has been executed by the business or by the developer or owner of the retail property benefitting from an approved incentive. Contracts include a "clawback" provision requiring the recipient to reimburse the fund a pro-rated amount of the retail development incentive received in the event that the benefited retail property should become non-productive.

Less Common Development Incentives

Other less common types of retail development incentives include:

• Sales tax deferral on construction (typically done through a public trust).

• Use tax deferral (not common in retail development incentives).

• Property assembly and acquisition.

• Extension or provision of sewer, water and other utilities to an area.

• Incentives through downtown development authority (grant, CDBG monies, other local incentives).

• Waiving building permits, sewer and water tap fees and other local fees.

• Sign, advertising and marketing concessions.