2018-025 Tax Abatement Agreement with SpiralWeld

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terms hereof are consistent with encouraging development of said Enterprise 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 Enterprise Zone adopted by the City and all applicable laws; and NOW, THEREFORE, pursuant to Chapter 312 of the Texas Tax Code and the Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2016-08, the parties hereto do mutually contract and agree as follows: I. Term 1.1 The effective date of this Agreement is the 24th day of September, 2018, with the tax abatement being effective from and after January 1, 2 02 0, and terminating on December 31, 2026 (an abatement period of seven (7) years (the "Abatement Period")). Said Abatement Period will terminate on December 31, 2026, regardless of when Owner completes the Improvements described in Sections II and III herein below. H. The "Property" - Area to be Improved 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Property located in Paris, Lamar County, Texas Plant and described in Exhibit attached hereto and incorporated herein by reference, which Property is within the Enterprise Zone. III. Consideration: Improvements 3.1 The Owner shall construct and operate a state of the art spiral weld steel pipe plant (herein called the "Improvements") at the Property located in Paris, Lamar County, Texas, which are more particularly described in Exhibit 3, attached hereto and incorporated herein by reference. The Improvements shall include the production facility, an office building, and the installation of equipment to manufacture steel pipe and will service large diameter water transmission projects in the South Central United States. When completed, the Improvements will contain approximately 250,000 square feet under roof. The manufacturing process will require substantial land dedicated to pipe laydown or storage prior to shipment. The majority of the finished product will typically be shipped within a 250 to 500 mile radius of the Improvements via flatbed carrier. Over a period of three years, beginning in 2018, Owner commits herein to invest no less than $72,000,000.00 and up to approximately $91,000,000.00 to construct the Improvements, which shall be completed prior to September 15, 2021. All of said improvements shall be described in the City's Certificates of Completion defined Section X, "Reporting Requirements." For the purposes of this the default provision of this Tax Abatement Agreement (Section V), the Improvements will be deemed completed upon the issuance by the City of Certificates of Occupancy for the structures included in the 2 32322924 v5