2015-027 - Approving a Tax Abatement Agreement with Paris Lakes Medical Center, LLC

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IV. Consideration (Improvements) 4.1 Owner agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the Improvements as provided in this Agreement. As a good and valuable consideration for this Agreement, Owner further covenants and agrees that all construction of Improvements will be in accordance with applicable state and local laws, codes and regulations, or Owner will procure a valid waiver or variance therefrom. In further consideration, Owner further agrees that from the date that the 64 -bed acute care hospital is completed until the expiration of this Agreement, Owner or Owner's agent, lessee or assignee shall continuously operate and maintain an acute care hospital on the Property to serve the citizens of Paris, Lamar County, Texas and the surrounding region. Should Owner, or Owner's authorized agent, lessee, tenant, successor or assignee ever close or suspend operations of the acute care hospital on the Property during the term of this Agreement except during a period of "force majeure," without written approval from the City as authorized by a Resolution of the Paris City Council, then Owner shall be in default of this Agreement and the provisions of Article V will apply. V. Default 5.1 If (a) all the Improvements referenced in this Agreement are not completed in accordance with terms and conditions of this Agreement by June 1, 2018; or (b) Owner fails to make the minimum $108,000,000.00 capital investment in the Improvements by June 1, 2018; or (c) Owner allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such ad valorem taxes; or (d) Owner materially breaches any of the other terms, provisions or conditions of this Agreement, then Owner shall be in default of this Agreement. 5.2 In the event the Owner defaults in its performance of either (a), (b), (c) or (d) above, then the City shall give the Owner written notice of such default and if the Owner has not cured such default within sixty (60) days of Owner's receipt of said written notice, this Agreement may be modified or terminated by the City. Notice shall be in accordance with paragraph 12.3 herein. As liquidated damages in the event of default, and in accordance with the requirements of Section 312.205 (a)(4) of the Tax Code of the State of Texas, all taxes which otherwise would have been paid to the City without the benefit of abatement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, and all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Property Tax Code of the State of Texas, shall be recaptured and become a debt to the City and shall be due, owing, and paid to the City within sixty (60) days of the expiration of the above - mentioned applicable cure period subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. 0