Agenda Packet - Laserfiche WebLink

Home Browse Search

chain issues, delayed ASWP's ability to complete construction in 2019, and could reasonably be deemed a force majeure ("Act of God") event. ASWP completed construction in 2020 and applied and received the tax abatement in 2021. Lamar County Appraisal District treated 2021 as Year 1 of the Abatement Period (which would have been Year 2 had ASWP been able to complete construction in 2019 as planned) and has applied the agreement accordingly since that time. In order to conform the language of the agreement to LCAD's interpretation of the Abatement Period, allow ASWP to avail itself of the entire seven year abatement period intended by the parties, and account for the force majeure pandemic event, Council will need to amend the Agreement to specify that the Abatement Period began on January 1, 2021 and will terminate on December 31, 2027. ASWP has made all required capital investments and has exceeded the staffing levels contemplated in the agreement. BUDGET: The attached amendment merely shifts the abatement year forward by a year; there was no abatement in 2020; there may be a difference in taxable value, and hence tax revenues, between the anticipated year 7 (2026) and the new year 7 (2027), but it is not likely significant. Year 7 is to be abated by only 25%. RECOMMENDATION: Approve the attached resolution approving an amendment to the tax abatement agreement with American SpiralWeld Pipe Company, LLC to shift the 7 year abatement period forward by one year.