08 - 5 In 5 TaxAbatement Agreement with P-Town Property Holdings

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C. Reduced Fees for Water and Sewer Tap Labor 4.3 In further consideration for Owner's construction and completion of the above - referenced Improvements, City agrees to reduce rates for water and sewer tap labor fees by seventy-five percent (75%) where required by the City's Public Works Department. D. Local Purchasing 4.4 As further consideration for the incentives granted herein, where possible, Owner shall purchase building materials and fixtures from vendors located within the City of Paris. E. Default 4.5 It 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. V. Terms Specific to the Residential Tax Abatement Agreement—Texas Tax Code Chapter 312 A. Term 5.1 The term of this Tax Abatement Agreement shall commence on June 12, 2023. It is the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on each separate structure constructed as it is completed and issued a Certificate of Completion by City. Consequently, each residential structure constructed and completed shall have its own five (5) year abatement period. The abatement period for each constructed and completed residential structure shall commence on January 1 of the year following City's issuance of a Certificate of Completion on said structure and end on the fifth (5t') anniversary of the commencement of the abatement period. This Tax Abatement Agreement shall terminate upon the expiration of the final abatement period granted herein unless otherwise terminated by default or agreement of the Parties. B. Abatement 5.2 Subject to the terms and conditions of this Economic Development Agreement and Tax Abatement Agreement, in further consideration for 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 maintenance and operations (M & O) ad valorem property taxes assessed upon each Improvement 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 3.1 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 4