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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payments directly to any lender or financing party under any circumstances, including default of the Developer. Developer shall have the sole responsibility for directing and applying such TIRZ Revenue in accordance with its financing arrangements. The City agrees, upon written request by Developer, to execute customary acknowledgments or consents reasonably required by Developer's lender evidencing the assignment, transfer, pledge, or security interest in its right, title, and interest in and to the TIRZ Revenue. Said documents shall not obligate the City in any way to Developer's lender, including but not limited to obligating the City to forward TIRZ Revenue to the lender in the unlikely event that Developer should default on its obligations to the lender. The City acknowledges that Developer's right to receive TIRZ Revenue constitutes a contractual payment right that may be relied upon by Developer and its financing parties. 2.4 TIRZ Revenue. Contingent upon the County's participation in the TIRZ and the execution of the Interlocal Agreement described herein in Section 2.2, it is herein agreed that the City shall contribute fifty percent (50%) of eligible incremental ad valorem tax revenue generated from the TIRZ Property to the TIRZ Fund, calculated prior to the deduction of any administrative costs or other expenditures of the TIRZ, which shall be pledged to the Developer for the design and construction of the Forestbrook Blvd Project; provided, however, that the City's obligation to contribute TIRZ Revenue to the TIRZ Fund shall continue until cumulative deposits to the TIRZ Fund, inclusive of City and County contributions, equal Fifty Million and No/100 U.S. Dollars ($50,000,000.00), and Developer shall be entitled to receive all TIRZ Revenue from the TIRZ Fund in accordance with the terms of this Agreement, after which the City's obligation to contribute or pay additional TIRZ Revenue under this Agreement shall terminate. Sales Tax shall not be included as part of the TIRZ Revenue unless the City Council expressly approves the inclusion of Sales Tax by ordinance or other formal action of the City Council. 2.5 Flow of TIRZ Revenue. The TIRZ Revenue collected within the TIRZ shall be used as follows: (a) First, to pay the City administrative costs relating to the TIRZ, including any reasonable third -party administrative costs, provided, however, that such administrative costs shall not reduce the amount of TIRZ Revenue allocated to Developer pursuant to Section 2.4; (b) Second, for allocation to the Developer pursuant to Section III of this Agreement for the Forestbrook Blvd Project Costs and related economic development improvements within the TIRZ, such allocation to continue during the term provided in this Agreement and in accordance with the Project and Finance Plan; and (c) Third, after satisfaction of the allocations described in subsection (b), to be used in any other manner authorized by the City and as permitted under the TIRZ Act. 2.6 Priority of TIRZ Revenue Allocation. Notwithstanding anything contained in this Agreement to the contrary, the Project and Finance Plan, or any future amendment thereto, the City and the TIRZ Board acknowledge and agree that the allocation of TIRZ Revenues to Developer as provided in this Agreement shall have priority over the funding of any other project, reimbursement obligation, incentive payment, or expenditure within the TIRZ, except for reasonable administrative costs of -the TIRZ permitted under Chapter 311 of the Texas Tax Code. The City shall not approve or implement any amendment to the Project and Finance Plan, nor authorize any expenditure of TIRZ Revenues, that would materially impair or subordinate Developer's right to receive the TIRZ Revenues allocated under this Agreement without the prior written consent of Developer. 4899-7656-8688.v12