2025-002 - Approving and authorizing an Economic Development Agreement by and between the City of Paris and AUDAX Enterprises

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incentives to promote local economic development and to stimulate business and commercial activity in the City; and WHEREAS, the City has determined that making economic development grants in accordance with this Agreement is in accordance with the City's economic development program and will: (i) further the objectives of the City; (ii) benefit the City and the City's inhabitants; and (iii) promote local economic development and stimulate business and commercial activity in the city; and WHEREAS, the area surrounding the Shopping Center is somewhat distressed, and the Shopping Center, when fully occupied, will be an economic catalyst to a part of the City that has not seen much development in recent years; NOW, THEREFORE, in consideration of the foregoing, and on the terms and conditions hereinafter set forth, and other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Article I—Term This Agreement shall be effective on the last date of execution hereof ("Effective Date") and shall continue until the Expiration Date, unless sooner terminated as provided herein. Article II—Definitions "Annual Grants" or "Grants" may refer to Annual Property Tax Grants or Annual Sales Tax Grants or to both collectively. "Annual Property Tax Grants" shall mean five (5) annual grants each in an amount equal to fifty percent (50%) of the Maintenance and Operations ("M & O") portion of the City's ad valorem taxes attributable to any incremental increase in taxable value attributable to new investment, after the effective date of this Agreement, on the Leased Premises the subject of this Agreement that are assessed for calendar years 2024, 2025, 2026, 2027, and 2028. "Annual Sales Tax Grants" shall mean three (3) annual grants each in the amount equal to fifty percent (50%) of the Sales Tax Receipts for each applicable Grant Period, to be paid to the Company as set forth herein. The amount of each Annual Sales Tax Grant shall be computed by multiplying the Sales Tax Receipts received by the City by 50% for the given Grant Period, less an administrative fee charged to the City by the State of Texas.