2024-042 - Approving an Amendment to a Tax Abatement Agreement between the City and Lionshead

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I. Term 1.1 The effective date of this Agreement is the 27th day of June, 2022, with the tax abatement being effective from and after January 1, 2024, or January 1St of the year immediately following completion of construction, and terminating on December 31, 2030 (an abatement period of seven (7) years (the "Abatement Period")). Said Abatement Period will terminate on December 31, 2030, regardless of when Owner completes the Improvements described in Sections II and III herein below. II. The "Property" - Area to be Improved 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Property located in Paris, Lamar County, Texas Plant and described in E'x .i -b t1 attached hereto and incorporated herein by reference, which Property is within the Enterprise Zone. III. Consideration: Improvements 3.1 The Owner shall construct and operate an assembling and warehousing plant including approximately 120,000 square feet under roof to be used in its business of assembling tire and wheel assemblies (herein called the "Improvements") at the Property located in Paris, Lamar County, Texas, which Improvements are more particularly described in Exhibit 3 attached hereto and incorporated herein by reference. Owner commits herein to invest no less than TWENTY MILLION AND N0/100 DOLLARS ($20,000,000.00) to construct the Improvements, which shall be completed prior to December 31, 2023. All of said improvements shall be described in the City's Certificates of Completion defined in Section X, "Reporting Requirements." For the purposes of the default provision of this Tax Abatement Agreement (Section V), the Improvements will be deemed completed upon the issuance by the City of Certificates of Occupancy for the structures included in the Improvements. Once Owner has applied for said Certificates of Occupancy, the City shall not unreasonably delay the issuance of same. Notwithstanding the foregoing, however, Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God, any natural disaster, war, riot civil commotion, insurrection, governmental or de facto governmental action unless caused by acts or omissions of Owner, fires, explosions, accidents, floods, and labor disputes or strikes. 3.2 The Owner agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the Improvements. As good and valuable consideration for this Agreement, Owner further covenants and agrees that all