11 - TAX ABATEMENT AGREEMENT WITH KIMBERLY-CLARK CORP

Home Browse Search

IV. Consideration Jobs 4.1 The City has provided in its Guidelines and Criteria for Tax Abatements substantially as follows: If an existing Employer owns or leases an Authorized Facility (such as the Plant of the Owner herein), and it has plans to improve such property by constructing new improvements on its real property or to add new personal property (which includes equipment, such as that to be installed by Owner herein at the Property), such existing employer may be eligible for tax abatement with respect to such Improvements to its real property or its new personal property even though no new jobs or newly created minimum annual payroll are created. in such cases, however, the Owner is encouraged to retain as many jobs and as much existing annual payroll as is economically feasible for the existing employer to be and remain competitive in its industry. 4.2 The Owner agrees to retain sufficient employment levels to efficiently operate and support its Plant operations and not to drop below 500 full-time employees (with benefits) at any time during the term of this Tax Abatement Agreement. V. Default 5.1 In the event that (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or the expenditure for the Improvements does not meet the amount required herein; or (b) Owner allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such ad valorem taxes; or (c) Owner materially breaches any of the other terms and conditions of this Agreement, then this Agreement shall be in default. In the event the Owner defaults in its performance of either (a), (b), or (c) above, the City shall give the Owner written notice of such default. if the Owner has not cured such default within sixty (60) days of said written notice, this Agreement may be modified or terminated by the City. Notice shall be in accordance with paragraph 13.3. As liquidated damages in the event of default, and in accordance with the requirements of Section 312.205 (a)(4) of the 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 a determined by Section 33.01 of the Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owning, and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. 4