2026-028 - Approve a Development Agreement with Lone Star Planned Developments, LLC relating to the City of Paris Tax Increment Reinvestment Zone No. 2 (Forestbrook Boulevard)

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"Project and Finance Plan" shall mean a combination of a "project plan" and "reinvestment zone financing plan" as those terms are defined in the TIRZ Act, for the TIRZ, consistent with the terms ofthis Agreement, as approved and periodically updated by the TIRZ Board pursuant to the TIRZ Act. "Sales Tax" shall mean the portion of city sales tax revenue generated from businesses and/or individuals located within the TIRZ that can be captured and allocated to the TIRZ Fund. "Segment(s)" shall mean the Forestbrook Blvd Eastern Segment and/or the Forestbrook Blvd Western Segment. "TIRZ Act" shall mean Chapter 311, Texas Tax Code, as amended. "TIRZ Board" shall mean the governing body of the TIRZ. "TIRZ Fund" shall mean the dedicated financial account wherein the TIRZ Revenue is deposited. "TIRZ Revenue" means the City tax increment pledged to be paid into the TIRZ Fund from the funds allocated for the Forestbrook Blvd Eastern Segment TIRZ Revenue and/or the Forestbrook Blvd Western Segment TIRZ Revenue, pursuant to this Agreement and the Project and Finance Plan. II. TAX INCREMENT REINVESTMENT ZONE 2.1 Creation. The City created the TIRZ on December 8, 2025, in Ordinance No. 2025-028 encompassing the TIRZ Property. City will be responsible for initiating the TIRZ creation process and for producing the Project and Finance Plan. The City shall create the TIRZ Fund in order to deposit the TIRZ Revenue. 2.2 Interlocal Agreement. Developer shall, at Developer's sole cost and expense, draft the Interlocal Agreement for review by the City, the TIRZ Board, and the County. The City and the TIRZ Board shall promptly review and, provided the Interlocal Agreement is consistent with the terms of this Agreement, execute and deliver the Interlocal Agreement. The City and the TIRZ Board shall promptly use commercially reasonable efforts to assist Developer in obtaining the County's execution of the Interlocal Agreement. The Interlocal Agreement shall be consistent with this Agreement and shall not amend, modify, diminish, or conflict with the rights and obligations of the City and Developer set forth herein. In the event of any conflict between this Agreement and the Interlocal Agreement, the terms of this Agreement shall control as between the City and Developer. 2.3 TIRZ Allocation Agreement. The terms of this Agreement shall govern the design, construction, and delivery of the Forestbrook Blvd Project by Developer and the allocation of the TIRZ Revenue to Developer in consideration thereof, as such TIRZ Revenue is collected per this Agreement, and no additional agreement shall be required to effectuate the allocation of TIRZ Revenue to Developer as provided herein. Developer shall be entitled, upon written notice to the City, to assign, transfer, pledge, or grant a security interest in its right, title, and interest in and to the TIRZ Revenue, to any lender or financing party providing credit or other financial accommodations to Developer for construction of all or any portion of the Forestbrook Blvd Project. The City agrees to recognize any such assignment, transfer, pledge, or security interest; provided, however, that all payments of TIRZ Revenue shall be made solely to an account in the name of Developer, as designated by Developer in written notice to the City. Developer may update such account from time to time by written notice to the City. The City shall have no obligation to make 4899-7656-8688.v12