2022-045 - Approving an Economic Developement and Tax Abatement Agreement With Sky-Mar Ventures, LLC

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E. Default 3.5 lt shall be an act of default of the Economic Development Agreement should Owner fail to construct and compete all of the Improvements specified herein within the five (5) year term set forth herein. IV. Terms Specific to the Residential Tax Abatement Agreement— Texas Tax Code Chapter 312 A. Term 4.1 The term of this Tax Abatement Agreement shall commence on April 11, 2022. The abatement period shall commence on January 1 of the year fol]owing City's issuance of a Certificate of Completion on said Improvements and end on the fifth (5`�) anniversary of the commencement of the abatement period. B. Abatement 4.2 Subject to the terms and conditions of this Economic Development Agreement and Tax Abatement Agreement, and in further consideration far the construction and completion of the Improvements required herein and subject to the rights and holders of any outstanding bonds of the City, a portion of the ad valorem property taxes assessed upon the Improvements and otherwise owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per year of the taxes assessed upon the increased value of the Improvements made by Owner to the Properties described in Section 1.1 of this Agreement, over the value in the year by which this agreement is executed (the `Base Value"), in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers thereof; provided that the Owner shall have the right to protest or contest any assessment of the Properties, and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest or contest. For the purposes of this Agreement, the Base Value of the existing real property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2022. 43 This abatement is granted in accardance with the City's Guidelines and Criteria for the Program, a copy of which is attached hereto as Exhibit 3 provided, however, in the event of any conflict between this Agreement and the Guidelines and Criteria for the Program attached hereto as Exhibit 3, this Agreement shall control. 4.4 Upon receipt of the documentation set forth in Article II and in Section 5.6 herein, City will notify the Lamar County Appraisal District to begin the tax abatement. C. Default 4.5 If (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement (within five (5) years of the effective date hereo�; 4