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Item No. 9 <br />AV, U Zimz TiM, <br />TO: City Council <br />Rose Beverly, City Manager <br />FROM: Stephanie H. Harris, City Attorney <br />SUBJECT: Re -adoption of guidelines and criteria for residential tax abatement program building <br />property <br />DATE: March 10, 2025 <br />BACKGROUND: On October 14, 2013, the City Council approved a tax abatement agreement <br />with American SpiralWeld Pipe Company, LLC (ASWP) pursuant to which ASWP committed to <br />construction of a state of the art spiral weld steel pipe plant at a cost of between $72,000,000.00 <br />and $91,000,000.00 and create at least 60 new full-time equivalent jobs. As consideration for the <br />investment, the agreement provides that ASWP would be the beneficiary of a seven year de- <br />escalating tax abatement on the real property improvements as follows: <br />Year 1 <br />100% <br />Year 2 <br />100% <br />Year 3 <br />70% <br />Year 4 <br />70% <br />Year 5 <br />50% <br />Year 6 <br />25% <br />Year 7 <br />25% <br />Paragraph 1.1 of the agreement provides that: <br />The effective date of this Agreement is the 24th Day of September, with the tax abatement <br />effective from and after January 1, 2020, and terminating on December 31, 2026 (an <br />abatement period of seven (7) years (the "Abatement Period")). Said Abatement Period <br />will terminate on December 31, 2026, regardless of when Owner completes the <br />Improvements ... <br />STATUS OF ISSUE: There has been some confusion regarding the start date of the Abatement <br />Period primarily occasioned by the Covid-19 pandemic of 2020-2021 which caused global supply <br />