23 - Tax Abatement Agreement for Lionshead Speciality Tire & Wheel

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laws, codes and regulations, or Owner will procure a valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificates of Occupancy for the structures on the Property are issued or the Improvements are completed as agreed until the expiration of this Agreement, continuously operate and maintain the Property and the Improvements as a tire and wheel assembly and warehousing plant. IV. Consideration Jobs 4.1 The City has provided in its Guidelines and Criteria for Tax Abatements, that in order to be eligible for a tax abatement, a new employer must make a minimal capital investment of $1,000,000.00 and create at least ten (10) new jobs. Owner herein has committed to a minimum investment of $6,000,000.00, and has committed to creating at least eighteen (18) new full-time equivalent with benefits positions with an estimated direct payroll of approximately SIX HUNDRED AND SEVENTY THOUSAND AND NO/100 DOLLARS ($670,000.00). These eighteen (18) full-time equivalent with benefits positions will be created on the following schedule: By June 30, 2021: Ten (10) By June 30, 2022: Five (5) By June 30, 2023: Three (3) In order to qualify for the tax abatement provided for herein, Owner must both create said full-time equivalent positions and retain those positions throughout the remaining years of the abatement period. 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 fails to create and retain the required full-time equivalent positions set forth herein and on the schedule set forth herein; or (d) 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), (c), or (d) 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. 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 C