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

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VI. Real and Personal Property Tax Abatement 6.1 Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, one hundred percent (100 %) of the ad valorem property taxes assessed upon the Improvements and otherwise owed to the City for the tax years 2016 through and including 2025 shall be abated. Said abatement shall be one hundred percent (100 %) of the taxes assessed upon the completed value of the Improvements, as they are completed from year to year during the term of this tax abatement, minus the value of the Property appraised as of January 1, 2015 (which is the "base year value" for the purposes of this Tax Abatement Agreement). Subject, however, to Owner's rights to protest such value of Improvements and cause it to be adjusted as is provided for under the applicable laws of the State of Texas. The ad valorem taxes assessed against the Project described herein shall continue to be abated at 100% of their assessed value for each year of the ten (10) year term of this Agreement (i.e. calendar years 2016 through 2025). This tax abatement shall be implemented and enforced in accordance with all applicable state and local laws and regulations or valid waiver thereof; provided that the Owner shall have the right to protest or contest any assessment of the Property, and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest or contest. For the purposes of this Agreement, the initial value of the 40 acres of land (the "Property ") which is not subject to tax abatement is Three Million Dollars ($3,000,000.00) which represents what Owner paid for the land prior to commencing the Project. The years for which ad valorem taxes will be abated regarding the Project will begin on January 1, 2016, and shall end on December 31, 2025, but this Agreement shall be effective from and after the Effective Date as stated herein. The full amount of taxes assessed by the Lamar County Appraisal District against the Property effective January 1, 2015, are not abated and shall be paid by Owner. Subject to Section 6.2 below, this tax abatement is effective for taxes that would be assessed against Improvements to the Project over the 10 -year period from the Effective Date of this Agreement through tax year 2025. 6.2 In the event Owner fails to complete all Improvements as described in Article III of this Agreement and attached Exhibits by June 1, 2018, including final inspection and receipt of a Certificate of Occupancy from the City of Paris, the percentage tax abatement on all Improvements provided for under this Agreements shall automatically drop down to a scale tax abatement, as set out in Article V of the City of Paris' Guidelines and Criteria for Tax Abatement (capital investment only, no iob creation consideration) and the years of tax abatement shall be reduced from ten (10) years to seven (7) years total. 6.3 The abatement granted herein shall be subject to and governed by the Guidelines and Criteria for Tax Abatement, a copy of which is attached hereto as Exhibit D. Owner shall comply with the requirements of Exhibit D in the performance of this Agreement, save and except that, in the event of a conflict between the requirements of Exhibit D and this Agreement, this Agreement shall control. 5