15 - Tax Abatement Agreement for Ametsa Packaging

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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 Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owning, and paid by Owner to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. VI. Tax Abatement 6.1 Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of ad valorem taxes from the Property otherwise owed to the City shall be abated. Said abatement shall be an amount equal to the following percentages of the maintenance and operation (M&0) portion of the taxes assessed upon the increased value of the Property attributed to the Equipment described in Section III of this Agreement and specified in Exhibit 3 hereto, over the value in the year 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 Property 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: Year 1 100% Year 2 100% Year 3 75% Year 4 75% Year 5 50% Year 6 50% Year 7 25% 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, 2023. Owner understands and agrees that pursuant to Texas Tax Code Sec. 312.204, no taxes will be abated under this agreement for any BPP located on the Property prior to the effective date of this Agreement, nor will the abatement apply to any BPP acquired and installed after the issuance of the City has issued its Certificate of Completion 6.2 The abatement granted herein shall be subject to and governed by the Criteria and Guidelines for Tax Abatement, a copy of which is attached hereto as Exh' ' 4 and incorporated herein by reference, save and except that, in the event of a conflict between the requirements of Exhibit 4 and this Agreement, this Agreement shall control. 4