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

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"Sales Tax Receipts" shall mean the City's receipts from the State of Texas from the Retailers' collection of the Sales and Use Tax (it being expressly understood that the City's one and one quarter percent (1.25%) sales and use tax receipts are being used only as a measurement for its participation through the use of general funds), as a result of sale of Taxable Items by Retailers for the applicable Grant Period consummated at the Leased Premises. Sales Tax Receipts shall not include any receipts generated by the quarter percent (.25%) economic development sales tax collected by City pursuant to Chapter 504 of the Texas Local Government Code. "State of Texas" shall mean the Office of the Texas Comptroller, or its successor. "Taxable Items" shall mean both "taxable items" and "taxable services" as those terms are defined by Chapter 151, Texas Tax Code, as amended. Article III—Economic Development Grants 3.1 Annual Property Tax Grants. (a) Subject to the Required Capital Investment, Required Use, and continued satisfaction of all the terms and conditions of this Agreement, and the obligation of the Company to repay said Annual Property Tax Grants pursuant to Article VI hereof, the City agrees to provide five (5) Annual Property Tax Grants of fifty percent (50%) of the M & O portion of those ad valorem taxes assessed and payable to the City and attributable to the Leased Premises for the calendar years 2024, 2025, 2026, 2027, and 2028. Each Annual Property Tax Grant will be in the amount equal to 18% of the total M & O taxes assessed and paid on the Property. This percentage has been calculated by multiplying 50% by the percentage of total square footage of the vacant vertical improvements to that of the total Property (36%). (b) Each Annual Property Tax Grant shall be due within thirty (30) days after receiving a Payment Request from Company for the relevant Grant Period, but in no event before the first day of April in the years 2025, 2026, 2027, 2028, and 2029. (c) In consideration for this ad valorem tax -based incentive, the Company has made or caused to be made a capital investment for improvements to the Shopping Center in an amount exceeding one million dollars ($1,000,000.00) prior to the execution of this Agreement. Said improvements included but are not limited to replacing the roof, resealing and restriping the parking lot and renovations of exterior of the shopping center. Any future improvements to the Property must conform to the City of Paris' building and fire codes and the subdivision ordinance as applicable, and the Company must meet all permitting and platting requirements, as applicable. 3.2 Annual Sales Tax Grants. (a) Subject to the Required Use and continued satisfaction of all the terms and conditions of this Agreement and the obligation of the Company to repay the Annual Sales Tax Grants pursuant to Article VI hereof, the City