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Item Nos. 18 & 19 <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Stephanie H. Harris, City Attorney <br />SUBJECT: Master Economic Development Agreement and Tax Abatement Agreement with <br />American SpiralWeld Pipe Company, LLC (for Agenda Items 20 and 21) <br />DATE: September 19, 2018 <br />BACKGROUND: The Paris Economic Development Corporation and the City have negotiated <br />a Master Economic Development Agreement (the "Master Agreement") with American related <br />to American's planned investment of between $72,000,000.00 and $91,000,000.00 to construct a <br />spiral weld pipe manufacturing plant on land located in what is now the PEDC's business park <br />and including an approximately 10 acre tract presently owned by the City. As further <br />consideration for the Master Agreement, ASWP will commit to employing at least 60 Full Time <br />Equivalent workers with full benefits beginning the first full year of production. The Master <br />Agreement is by and among the City, PEDC and American and contains the following <br />components: <br />A. A Performance Agreement pursuant to TEX. LOC. Gov'T CODE CHAPTERs 501 AND 504 <br />between PEDC and American relating to a grant of land from PEDC to American; a grant <br />of funds from PEDC to American; and a further cash -for -jobs incentive should American <br />add an additional 40 jobs over the initial 60; <br />B. An agreement under TEx. LOC. GOVT CODE CHAPTER 380 whereby the City grants <br />certain land to American; and <br />C. A Tax Abatement Agreement pursuant to TEx. TAX CODE CHAPTER 312 between the City <br />and American on the value of improvements made to said land. <br />With respect to the Tax Abatement Agreement (Exhibit C to the Master Agreement), the <br />abatement will be a seven year deescalating abatement beginning on January 1, 2020 and ending <br />on December 31, 2026, with construction to be completed by September 15, 2021, according to <br />the following schedule: <br />