11 - Economic Development Agreement with Paris Hotel, LP for TownPlace & Fairfield Inn Development

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"Sales and Use Tax" shall mean the one and one quarter percent (1.25%) sales and use tax imposed by the City pursuant to Chapter 321, Texas Tax Code, on the sale of Taxable Items by the Retailers Consummated in the City at the Leased Premises. Sales and Use Tax shall not include the quarter percent (.25%) economic development sales tax collected by City pursuant to Chapter 504 of the Texas Local Government Code. "Sales Tax Receipts" shall mean the City's receipts from the State of Texas from the Hotel's collection of the Sales and Use Tax (it being expressly understood that the City's one and one quarter percent (1.25%) sales and use tax receipts are being used only as a measurement for its participation through the use of general funds), as a result of sale of Taxable Items by Retailers for the applicable Grant Period consummated at the Hotel premises. Sales Tax Receipts shall not include any receipts generated by the quarter percent (.25%) economic development sales tax collected by City pursuant to Chapter 504 of the Texas Local Government Code. "State of Texas" shall mean the Office of the Texas Comptroller, or its successor. "Taxable Items" shall mean both "taxable items" and "taxable services" as those terms are defined by Chapter 151, Texas Tax Code, as amended. Article III—Economic Development Grants 3.1 Annual Property Tax Grants. (a) Subject to the Required Capital Investment, Required Use, and continued satisfaction of all the terms and conditions of this Agreement, and the obligation of the Company to repay said Annual Property Tax Grants pursuant to Article VI hereof, the City agrees to provide five (5) Annual Property Tax Grants in an amount equal to one hundred percent (100%) of the taxes assessed upon the increased value of the Property over the value of the Property as of January 1, 2022, for the calendar years 2024, 2025, 2026, 2027, and 2028. (b) Each Annual Property Tax Grant shall be due within thirty (30) days after receiving a Payment Request from Company for the relevant Grant Period, but in no event before the first day of April in the years 2025, 2026, 2027, 2028, and 2029. (c) In consideration for this ad valorem tax -based incentive, the Company Agrees to make or cause to make the Required Capital Investment, complete the Improvements, and open for business within eighteen (18) months of the Effective Date of this Agreement. On or before the expiration of the 18 month period, the Company shall present the City with an affidavit affirming that it has made or caused to have been made the required improvements and the total capital amount of said improvements. All improvements to the Property must conform to the City of Paris' building and fire codes