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2018-024 Master Economic Development Agreement between the City, PEDC and American Spiralweld PipeRESOLUTION NO. 2018-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING A MASTER ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PARIS, TEXAS, PARIS ECONOMIC DEVELOPMENT CORPORATION AND AMERICAN SPIRALWELD PIPE COMPANY, LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris, Texas has been presented a proposed Master Economic Development Agreement (the "Master Agreement") by and between the City of Paris, Texas ("City"), the Paris Economic Development Corporation ("PEDC'), and American Spi'ralWeld Pipe Company., LLC ("American"), providing for an economic incentive package to American related to commercial and industrial tax improvements, a copy of which is attached hereto as Exhibit 1 and incorporated herein by reference, hereinafter called the "Agreement"; and, WHEREAS, the City of Paries, Texas and the Paris Economic Development Corporation wish to encourage and incentivize industrial development within the City; and WHEREAS, American SpiralWeld Pipe Company, LLC wishes to construct and operate a state of the art spiral weld pipe mill within the City; and WHEREAS, the City, a home rule municipal corporation, and PEDC own real property suitable for the construction of such spiral weld pipe mill; and WHEREAS, the City has heretofore adopted an economic development program pursuant to TEx.Loc.Gov 0 T CODE CHAPTER 380; and WHEREAS, the PEDC is a Type A Texas non-profit economic development corporation with the duties and authority granted to it by TEx.Loc.GovPT CODE CHAPTERS S01 AND $04; and WHEREAS, the City Council of the City of Paris did heretofore, on the 22°d day o f January, 2018, in Resolution No. 2018-004,, elect to be eligible to participate in tax abatement agreements in order to maintain and enhance the commercial and industrial economic and employment base of the Paris area for the long term interest and benefit of the City and its citizens; and, WHEREAS, under the Texas Enterprise Zone Act (TEx.GOV"T CODE CHAPTER 2303),, the designation of an area as an Enterprise Zone also constitutes designation of the area as a reinvestment zone (the "Reinvestment Zone"),; and WHEREAS, pursuant to the 2010 Census, the Property granted herein to American by the City and PEDC within City of Paris, Texas , is included within an Enterprise Zone; and I . I WHEREAS, the City, pursuant to TEx-LOC.GOV ) T CODE CHAPTER 380, and PEDC, pursuant its authority under TEx.Loc.GOV'T CODE CHAPTERS 501 AND 504, and subject to the terms of the Master Agreement, wish to grant real property and funds to American for the purpose of constructing its spiral weld pipe mill in Paris, Lamar County, Texas, and that further, the City finds that the grant of certain city -owned property to American will achieve the public purpose of encouraging economic development within the Enterprise Zone; and WHEREAS, American has agreed to construct and operate said spiral weld pipe mill on the real property in Paris, Texas heretofore owned by the City and PEDC; and WHEREAS, the contemplated use of American's Facility upon the Property, and the amount of the investment as set forth in the Master Agreement and the other terms hereof are consistent with encouraging development of said Enterprise Zone in accordance with the purposes for which it was created and are in compliance with the City's policy on tax abatement incentives, the City further wishes to grant a tax abatement to American according to the terms set forth herein; and WHEREAS, the Board of Directors of the PEDC approved the Master Agreement at its regular meeting on September 18, 2018 and authorized the execution hereof subject to the approval of the City Council of the City of Paris in accordance with the PEDC's bylaws and state law; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the terms and conditions of the proposed Master Agreement attached hereto as Exhibit 1, having been reviewed by the City Council of the City of Paris MENEM! and found to be acceptable and in the best interests of the City of Paris and its citizens, be, and the same are hereby, ion all things approved. Section 3. That the Mayor or Mayor Pro Tem is hereby authorized to execute the Master Agreement and all other documents in connection therewith on behalf of the City of Paris substantially according to the terms and conditions set forth in the Agreement attached hereto as Exhibit 1. Section 6. That this approval and execution of the Master Agreement on behalf of the City is not conditioned upon approval and execution of any other tax abatement agreement by any other taxing entity. A*',- e a DULY PASSED AND APPROVED this 24th day of September, 2018. ATTEST: ice Ellis, City Clerk ROVED AS TO FORM: ie H. Harris, City Attorney Derrick Hughes., Mayor Pro Tem ECONOMIC DEVELOPMENT MASTER AGREEMENT By and between The City of Paris, Texas, Paris Economic Development Corporation, and American SpiralWeld Pipe Company, LLC 32300891 00 MASTER ECONOMIC DEVELOPMENT AGREEMENT This Master Economic Development Agreement ("Master Agreement") is made by and among the City of Paris, Texas ("City"), the Paris Economic Development Corporation ("PEDC"), and American SpiralWeld Pipe Company, LLC ("American"), acting by and through their respective authorized officers and representatives, relating to the construction and operation of a state of the, art spiral weld pipe mill in Paris, Lamar County, Texas. WITNESSETH: WHEREAS, the City of Paris, Texas and the Paris Economic Development Corporation wish to encourage and incentivize industrial development within the City; and WHEREAS, American SpiralWeld Pipe Company, LLC wishes to construct and operate a state of the art spiral weld pipe mill within the City; and WHEREAS, the City, a home rule municipal corporation, and PEDC own real property suitable for the construction of such spiral weld pipe mill; and WHEREAS, the City has heretofore adopted an economic development program pursuant to TEx.Loc.Gov'T CODE CHAPTER 380; and WHEREAS, the PEDC is a Type A Texas non-profit economic development corporation with the duties and authority granted to it by TEx.Loc.Gov'T CODE CHAPTERS 501 AND 504; and WHEREAS, the City Council of the City of Paris did heretofore, on the 22nd day of January, 2018, in Resolution No. 2018-004, elect to be eligible to participate in tax abatement agreements in order to maintain and enhance the commercial and industrial economic and employment base of the Paris area for the long term interest and benefit of the City and its citizens; and, WHEREAS, under the Texas Enterprise Zone Act (TEx.Gov'T CODE CHAPTER 2303), the designation of an area as an Enterprise Zone also constitutes designation of the area as a reinvestment zone (the "Reinvestment Zone"); and WHEREAS, pursuant to the 2010 Census, the Property granted herein to American by the City and PEDC within City of Paris, Texas, is included within an Enterprise Zone; and 32300891 00 1 WHEREAS, the City, pursuant to TEx.Loc.Gov'T CODE CHAPTER 380, , and PEDC, pursuant its authority under TEx.Loc.Gov'T CODE CHAPTERS 501 AND 504, and subject to the terms of this Master Agreement, wish to grant real property and funds to American for the purpose of constructing its spiral weld pipe mill in Paris, Lamar County, Texas, and that further, the City finds that the grant of certain city -owned property to American will achieve the public purpose of encouraging economic development within the Enterprise Zone; and WHEREAS, American has agreed to construct and operate said spiral weld pipe mill on the real property in Paris, Texas heretofore owned by the City and PEDC; and WHEREAS, the contemplated use of American's Facility upon the Property, and the amount of the investment as set forth in this Master Agreement and the other terms hereof are consistent with encouraging development of said Enterprise Zone in accordance with the purposes for which it was created and are in compliance with the City's policy on tax abatement incentives, the City further wishes to grant a tax abatement to American according to the terms set forth herein; and WHEREAS, the Board of Directors of the PEDC approved this Master Agreement at its regular meeting on September 18, 2018 and authorized the execution hereof subject to the approval of the City Council of the City of Paris in accordance with the PEDC's bylaws and state law; and WHEREAS, at its regular meeting on September 24, 2018 the City Council of the City of Paris approved this Master Agreement and the Tax Abatement Agreement attached hereto as Exhibit C and authorized the execution hereof, WHEREAS, it is anticipated that the Lamar County Commissioner's Court shall approve a Tax Abatement Agreement upon substantially similar terms as those set forth in the City of Paris Tax Abatement Agreement (Exhibit C) for the abatement of Lamar County ad valorem taxes. NOW, WHEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Article I—Component Parts This Master Agreement comprises discrete components as follows: A. A Performance Agreement pursuant to TEx. Loc. GOVT CODE CHAPTERS 501 AND 504 between PEDC and American relating to a grant of land from PEDC to 32300891x10 2 American; a grant of funds from PEDC to American; and a further cash -for - jobs incentive; B. An agreement under TEX. Loc. GOV'T CODE CHAPTER 380 whereby the City grants certain land to American; and C. A Tax Abatement Agreement pursuant to TEX. TAX CODE CHAPTER 312 between the City and American on the value of improvements made to said land. The following Exhibits are attached hereto and incorporated by reference as if fully set forth herein: Exhibit A: Legal Description of First Phase Property Exhibit B: Map of Tracts Constituting The Property Exhibit C: Tax Abatement Agreement Exhibit D: Wetlands Map Exhibit E: [RESERVED] Exhibit F: Property Rail Lead Map Exhibit G: ASWP Semiannual Compliance Certification Form Exhibit H: ASWP Annual Compliance Certification Form Exhibit I: Legal Description of City -owned First Phase Property Exhibit Form for Triple Net Lease for Rail Lead Article II—Definitions For the purposes of this Master Agreement, each of the following terms shall have the meaning set forth herein unless the context clearly indicates otherwise or unless otherwise set forth herein or in the Tax Abatement Agreement attached hereto as Exhibit C: "380 Agreement" shall mean the agreement between American and the City set forth herein in Article IV and entered pursuant to the City's economic development program authorized by TEX. Loc. GOVT CODE CHAP. 380 regarding the transfer of land from the City to American and American's obligations related thereto. "Agreed Fair Market Value of the Land" shall mean One Million Two Hundred Forty -Six Thousand Dollars ($1,246,000.00), which represents the dollar value of the Property conveyed to American under this Master Agreement. 32300891 00 3 "American" shall mean American SpiralWeld Pipe Company, LLC, a South Carolina Limited Liability Company. "Average Headcount" shall mean the number of Full-time Equivalent ("FTE") positions in a calendar year as determined by calculating the average number of FTE positions reflected in each of American's Quarterly Reports filed with the Texas Workforce Commission ("TWC") and provided to PEDC in connection with the reporting requirements set forth herein. "Beginning of Construction" shall mean the date that American has both (i) obtained all necessary permits to begin the first stage of construction as set forth in paragraph 3.2.B herein below and has (ii) begun major land grading work on the Property. "City" shall mean the City of Paris, Lamar County, Texas. "City Property" shall have the meaning set forth in paragraph 4.3.A. "Completion of Construction" shall mean the date upon which the City issues Certificates of Occupancy for all structures on the Property. Once American applies for said Certificates of Occupancy, the City shall not unreasonably delay the issuance of same. "Effective Date" shall mean the last date of execution of this Master Agreement. "Environmental Remediation Requirements" shall have the meaning set forth in paragraph 3.3.C. "Expiration Date" shall mean the 10th anniversary of the Effective Date. Notwithstanding the foregoing, the Tax Abatement Agreement (Exhibit C) shall expire on the last date of the Abatement Period, as set forth therein. "Facility" shall mean a state of the art spiral weld pipe mill to be constructed by American on the Property and operated by American in accordance with its obligations under this Master Agreement and the Tax Abatement Agreement (Exhibit C). "First Year of Production" shall mean the first, full calendar year that American's Paris, TX Facility is producing spirally -welded steel pipe for commercial sale. "Force Majeure" shall mean any contingency or cause beyond the reasonable control of American including, without limitation, acts of God, or the public enemy, any natural disaster, war, riot, civil commotion, insurrection, governmental or de facto governmental 4 32300891 00 action, unless caused by acts or omissions of American, fires, explosions, accidents, floods, and labor disputes or strikes. "FTE" or "FTE Position" shall mean one or more persons performing the equivalent work of one permanent, full-time (at least 32 hours per week), benefit -eligible employee working for American at the Facility. An FTE Position does not include positions filled by temporary employees, or positions filled by employees of employment agencies or services. "Master Agreement" shall mean this Master Economic Development Agreement in its entirety and in its component parts as set forth herein. "Performance Agreement" shall mean the agreement between American and PEDC set forth herein as Article III and entered into pursuant to TEX. Loc. GOVT CODE CHAPS. 501 AND 504 relating to a transfer of land and funds from PEDC to American, American's duties and obligations associated therewith, and other agreements between PEDC and American. "The Property" shall mean each of the tracts of land conveyed to American by the City or PEDC pursuant to the terms herein (whether such conveyance occurs simultaneously with the execution of this Master Agreement or thereafter pursuant to the terms herein) for the purposes of the construction and operation of a spiral weld pipe mill. Said Property is located on Northwest Loop 286 and is more particularly described in the diagrams attached hereto as Exhibit B and incorporated by reference as if fully set forth herein. "Tax Abatement Agreement" shall mean an agreement authorized by TEX. TAX CODE CHAP. 312 between the City and American and attached hereto as Exhibit C and incorporated by reference as if fully set forth herein. Article III—Performance Agreement between PEDC and American The PEDC and American enter into the following Performance Agreement pursuant to the Texas Economic Development Act, TEX. Loc. GOVT CODE CHAPTERS 501 AND 504, and agree as follows: 3.1 Term The term of this Agreement shall begin on the Effective Date and shall continue until the Expiration Date, unless sooner terminated as provided herein. 3.2 Recitals Regarding the Investment A. As consideration for the grants of land and funds made herein by PEDC, American will construct and operate a state of the art spiral weld steel pipe plant (the "Facility") to service large diameter water transmission projects in 3230089100 5 the South Central United States. The plant when completed will contain approximately 250,000 square feet under roof. The process requires substantial land dedicated to pipe laydown or storage prior to shipment. Flat rolled steel coil will be shipped into the plant and converted to steel pipe. At this time, American envisions the majority of the finished product will be shipped within a 250 to 500 mile radius of the plant. B. American will construct the Facility in stages. The first stage of the Facility construction is the subject of this Performance Agreement and will include the land, production facility, office building, and equipment to manufacture steel pipe on a single shift operation. This first stage will require a minimum investment of $72,000,000.00, with an estimated total investment on the Property of over $91,000,000.00. C. Future stages may include ramping up capacity with the addition of a second manufacturing shift and the addition of a building for the fabrication of large diameter pipe fittings and appurtenances. D. The process is considered heavy industrial and which typically includes professional managers, equipment operators, certified welders, quality control, mobile equipment operators and skilled maintenance crafts. 3.3 Land Grant A. Within five (5) business days of notice from American, PEDC shall convey to American fee simple title to the approximately 88 acres of land located on Northwest Loop 286, Paris, Texas 75460, which land is more particularly described by metes and bounds in the legal description attached as Exhibit A (the "First Phase Property"). In connection with the conveyance, PEDC shall deliver to American a duly executed and acknowledged Warranty Deed conveying the First Phase Property to American. B. The Parties agree that the Property comprises three "Phases:" (1) the "First Phase Property" or greenfield land; (2) the "Second Phase Property," land that is environmentally compromised and/or has developmental limitations and is more fully described on Exhibit B hereto; and (3) the "Third Phase Property," which contains wetlands, and is more fully described on Exhibit B hereto. PEDC shall be financially responsible for having the Property cleaned and/or permitted in accordance with the Environmental Remediation Requirements. 32300891x10 6 C. In order to protect American from any liability stemming from known environmental contamination committed by previous owners, American shall take ownership of the Second Phase Property once a TCEQ Voluntary Cleanup Program ("VCP") Certificate has been sought by the PEDC and issued by the TCEQ. American shall assist the PEDC throughout the VCP process and shall be permitted to be a named co -applicant for such VCP Certificate. In conjunction with and in addition to enrolling the relevant Property in the Texas VCP, the PEDC shall demolish and remove all permanent structures or fixtures presently on the Second Phase Property. The PEDC shall be financially responsible for the permitting or approvals necessary for the planned development of the Facility in connection with the USACE jurisdictional wetlands on the Property, which are more particularly described in Exhibit D. American shall be permitted to work directly with Berg+Oliver, or any other PEDC-authorized environmental consultant, to establish a wetlands permitting plan and receive the necessary USACE permits and/or approvals to proceed with the Facility's planned development. For the purposes of this agreement, the forgoing terms of this paragraph shall collectively mean the "Environmental Remediation Requirements". D. PEDC's conveyance of a portion the Property to American is in consideration for American's commitment to locate the Facility in Paris, Texas. At the time of conveyance of the First Phase Property, PEDC shall provide, at its expense, an owner's title insurance policy as to such First Phase Property. E. Upon satisfaction of the Environmental Remediation Requirements with respect to the Second Phase Property, PEDC shall to convey to American fee simple title to such Second Phase Property in the same manner as provided for the First Phase Property in paragraph 3.3.A above (including, without limitation, delivery of a duly executed and acknowledged Warranty Deed conveying fee simple title to the Second Phase Property to American). At the time of conveyance, PEDC, at its expense, shall provide owner's title insurance as to the Second Phase Property. The satisfaction of the Environmental Remediation Requirements and subsequent conveyance of the Second Phase Property to American shall occur no later than twelve (12) months following the Effective Date. During this twelve month period, PEDC shall allow American and its contractors access to and over the Second Phase Property such that construction on the First Phase Property may occur concurrently with the environmental remediation efforts on the Second Phase Property to the extent that such access and construction is permitted 7 32300891x10 by TCEQ, EPA, USACE, or other relevant environmental regulatory authorities. F. Upon satisfaction of the Environmental Remediation Requirements with respect to the Third Phase Property, PEDC shall to convey to American fee simple title to such Third Phase Property in the same manner as provided for the First Phase Property in paragraph 3.3.A above. At the time of conveyance, PEDC, at its expense, shall provide owner's title insurance as to the Third Phase Property (including, without limitation, delivery of a duly executed and acknowledged Warranty Deed conveying fee simple title to the Third Phase Property to American). The satisfaction of the Environmental Remediation Requirements and subsequent conveyance of the Third Phase Property shall occur no later than eighteen (18) months following the Effective Date. During this eighteen (18) month period, PEDC shall allow American and its contractors access to and over the Third Phase Property such that construction on the First Phase Property may occur concurrently with the wetland remediation efforts on the Third Phase Property to the extent such access and construction is permitted by TCEQ, EPA, USACE or other relevant environmental regulatory authorities. G. The Parties acknowledge that Property must be platted in accordance with Code of Ordinances of the City of Paris and that PEDC shall be responsible for completing the platting requirement. H. Claw back provisions as to land grant: In lieu of any restrictive covenants of title relating to economic development goals and employment metrics, the Parties have agreed that American will pay PEDC liquidated damages as follows should American fail to meet construction and/or job creation and maintenance goals: 1. Claw back provisions relating to time of construction: If American fails to reach Completion of Construction on the Facility on or before the dates set forth in the table below, American shall pay PEDC liquidated damages as follows: 32300691 v10 Date Liquidated Damages' ..,.............. gess ......... . ............... .... ............. . _ 3/24/2021 ........n ......... $311,500.00 9/24/2021 ......... .. .............................................. $311,500.00 3/24/2022 ..... ....... - ._._... .............. $311,500.00 9/24/2022 $311,50....... 0 00 2. Claw back provisions relating to FTE creation and maintenance: American commits to create and maintain, at a minimum, an Average Headcount of sixty (60) FTE beginning in the First Year of Production and continuing throughout the next six (6) calendar years, for a total of seven (7) calendar years. For each of these seven (7) years, if American's Average Headcount is less than sixty (60) FTE positions, American shall pay liquidated damages to PEDC as a claw back the sum of $5,000.00 per FTE position below sixty (60). By way of example, if in Year 4, American maintains an Average Headcount of 50, American shall pay PEDC the amount of $50,000.00 in liquidated damages. 3. Notwithstanding the foregoing, in no event will American be liable under this paragraph 3.3.H. for a total claw back amount, in the aggregate over the relevant seven year period, greater than $1,246,000.00. 4. In this connection, American shall provide PEDC with a copy of the Certificates of Occupancy for the Facility once obtained from the City. 3.4 Grant of Funds A. As a further incentive for American to build its new Facility in Paris, Texas, PEDC shall grant $1,500,000.00 to American which shall be due and payable to American fourteen (14) days after American notifies PEDC and the City in writing of the Beginning of Construction. In this connection, the Parties understand and agree that American must meet certain legal requirements before the City can issue permits necessary for utilities, land grading, and construction, and that consequently, the City cannot issue such permits until after American has submitted completed applications for same and the City has determined that American is qualified to receive such permits. American's notification to PEDC shall be in writing, shall be sworn to, shall 1 Each potential payment of $311,500.00 represents twenty-five percent (25%) of the Agreed Fair Market Value of the Property. 32300891 v10 9 include copies of permits obtained by American for the construction of the Facility, and shall be delivered in the same manner as other notices pursuant to Section 6.E of this Master Agreement. Additionally, the PEDC shall make available funds for the reconstruction and rehabilitation of the Kiamichi and PEDC owned rail line to the Property subject to the terms of paragraph 3.6, "Rail Reconstruction." B. Claw back provisions as to Grant of Funds. 1. Claw backs relating to time of construction: If American fails to reach Completion of Construction on the Facility on or before the dates set forth on the table below, American shall repay PEDC Grant Funds as follows: Date Grant Funds American Will Repay to PEDC ��. .. __.,__24 _- ,____-_ 3 / /2021 ___ .. _ . .... ------------- _. $3 75,000.00 _ .... _ _._......_.. 9/24/2021 ........... --- .......... _. An Additional $375,000.00 3/24/2022 ..... ........................................ . . . ........................................ An Additional $375,000.00 9/24/2022 An Additional $375,000.00 mm . .................. -... ........ 2. Claw back provisions relating to FTE creation and maintenance: American commits to create and maintain, at a minimum, an Average Headcount of sixty (60) FTE beginning in the First Year of Production and continuing throughout the next six (6) calendar years, for a total of seven (7) calendar years. For each of these seven (7) years, if American's Average Headcount is less than sixty (60) FTE positions, American shall repay Grant Funds to PEDC the sum of $5,000.00 per FTE position below sixty (60). By way of example, if in Year 4, American maintains an Average Headcount of 50, American shall repay PEDC the amount of $50,000.00. 3. Notwithstanding the foregoing, in no event will American be liable under this paragraph 3.4.13. for a total claw back amount, in the aggregate over the relevant seven year period, greater than $1,500,000.00. 3.5 Additional Cash for Jobs Incentive 32300891 00 1.0 A. Subject to subsection C. below, as incentive to American to increase its employment levels over the minimum 60 FTE positions required by this Performance Agreement, during the seven (7) year term beginning with in the First Year of Production, PEDC will pay the sum of $25,000.00 to American for each FTE position American adds over and above the minimum 60 FTE positions and maintains for a period of at least six (6) months. B. To request payment under this Section 3.5, American shall make a written request to PEDC accompanied by a copy of its payroll at the Paris Facility, including the last four (4) numbers of each employee's social security number, highlighting each employee over the minimum 60 employees who have been employed by American for at least six (6) months and for whom American seeks payment. American will also provide documentation showing the hours worked per week during the preceding six (6) month period for each such employee. After the first such request by American, American may make additional written requests for payment for newly added employees on a semi-annual basis by the same method, highlighting new employees added since the last request and for whom American seeks payment. Within 30 days of the PEDC's receipt of all the request documentation outlined above, the PEDC shall confirm American's eligibility for and make all incentive payments due and owing as to such request. C. The total amount that American is eligible to receive under this paragraph 3.5 is capped at $1,000,000.00. The cash payments are intended by the Parties to compensate American for adding FTE Positions and are not tied to individual employees. In no event will PEDC pay American for refilling a position already compensated for under this Section. 3.6 Rail Restoration The Parties acknowledge that a functioning rail line to the Facility is critical to the operation of the Facility, and they further recognize that both the Kiamichi Railroad and the PEDC-owned portions of a rail lead to the Property ("Rail Lead"), which is set forth more particularly on Exhibit F, requires significant reconstruction. A. PEDC and American shall work cooperatively in order to complete reconstruction of the Rail Lead in a timely manner. The PEDC and American agree to apportion the total expenses necessary to reconstruct the Rail Lead ("Total Rail Lead Reconstruction Expenses") as follows: 32300891 00 1 i. PEDC shall apply for Community Development Block Grant Funding for the expenses necessary to reconstruct the Rail Lead ("Rail Lead CDBG Funds"). To that end, PEDC has engaged Charles Edwards with Resource Management and Consulting Co. to prepare and submit the CDBG application and oversee the CDBG process. American shall reasonably assist PEDC in making such grant applications and provide advice on any technical requirements. The Parties acknowledge that a portion of the Rail Lead lies within a flood plain and that Rail Lead CDBG Funds may not be available for reconstruction of rail lying within a flood plain. The Parties further acknowledge the possibility that PEDC's application for Rail Lead CDBG Funds will be denied in whole or in part. ii. The PEDC shall make available up to One Million Dollars ($1,000,000.00) towards the Total Rail Lead Reconstruction Expenses. Any Rail Lead CDBG Funds sourced by the PEDC and spent on Rail Lead reconstruction, shall be considered funds "made available", in satisfaction of PEDC's obligations set forth in the preceding sentence. iii. In the event the Total Rail Lead Reconstruction Expenses exceeds One Million Dollars ($1,000,000.00), the PEDC shall have no further financial obligation in connection with the Rail Lead's reconstruction. iv. PEDC's commitment in this Section 3.6 is to provide funding to reconstruct the rail lead to the Kiamich Railroad's minimum applicable safety, engineering, and construction standards. B. The Parties recognize that the restoration and reconstruction of the Rail Lead is subject to the approval of Kiamichi Railroad and PEDC. American acknowledges that an agreement between the PEDC and Kiamichi Railroad will likely be required in order for the Rail Lead reconstruction to commence. The PEDC shall use its best efforts in pursuit of such agreement and American shall provide its support in pursuit of any such agreement, up to and including participating as a signatory on any such agreement. C. The City of Paris shall use best efforts to assist in any local permitting or approvals required in connection with the restoration of rail service to the Property line. D. Once the rail reconstruction is complete, American and PEDC will execute a triple net lease substantially in the form attached hereto as Exhibit I and incorporated herein by reference. 32300891 00 1 3.7 Reporting Requirements for Performance Agreement American understands that the grant of land and funds made herein are public assets and that consequently, PEDC and the City must exercise due diligence in ascertaining that American meets is obligations under this Performance Agreement. Accordingly, American agrees to report to PEDC as follows: A. With Respect to Construction of the Facility: 1. American will notify PEDC of the Beginning of Construction as set forth in paragraph 3.4.A hereinabove in order to request the payment of the $1,500,000.00 in grant funds. 2. American will notify PEDC at the Completion of Construction by providing PEDC with copies of its Certificates of Occupancy. B. With Respect to FTE Positions: 1. Beginning in the First Year of Production, American will provide to PEDC with a copy of its payroll for the Paris Facility, including the last four digits of each employee's social security number, and with copies of its Employer Quarterly Reports as filed with the Texas Workforce Commission. American will also provide documentation showing the hours worked per week in the preceding six (6) month period for each employee. American shall provide this documentation to PEDC on a semiannual basis. American shall certify that the documents provided are true and correct copies of same in the form attached hereto as Exhibit Gwith submissions being due no later than September 1st (Q1 and Q2 of that calendar year) and March 1st (previous year's Q3 and Q4) of each calendar year. 2. American shall provide the additional documentation set forth in Section 3.5.B when applying for the release of the additional per FTE Position payments. American may make such requests for additional payments concurrently with its semiannual reporting requirements contained in this Section. 3. Once a year, on the form attached hereto as Exhibit H, will certify to PEDC and the City that it is compliance with each and every 3230089100 1.3 term set forth in this Performance Agreement and in the 380 Agreement set forth in Article IV herein. Said certification shall be made on or before March 31st of each year in this Master Agreement. Article IV—Chapter 380 Agreement between City, American and PEDC The City, American and PEDC enter into the following agreement pursuant to TEx. Loc. GOVT CODE CHAPTER 380 and agree as follows: 4.1 Term The term of this Agreement shall begin on the Effective Date and shall continue until the Expiration Date, unless sooner terminated as provided herein. 4.2 Recitals The Recitals contained in Section 3.2 of this Master Agreement are incorporated by reference into this Chapter 380 Agreement as if set forth in full. 4.3 Land Grant to American from the City A. Within five (5) business days of notice from American, the City shall convey to American fee simple title to the approximately 9.18 acres of land owned by the City located west of 19th St. Northwest, Paris, Texas, which land is more particularly described by metes and bounds in Exhibit I attached hereto (the "City Property"). In connection with such conveyance, the City shall deliver to American a duly executed and acknowledged Warranty Deed. Said City Property comprises a landlocked parcel adjacent to the First Phase Property conveyed to American by PEDC pursuant to paragraph 3.3.A hereof. Said conveyance is subject to an Amended Lease Agreement between the City of Paris, Texas and Cox Southwest Holding LP relating to a communications tower and dated on or about February 13, 2006 and assigned by Cox Southwest Holding LP to Cebridge Acquisition Co., LLC on or about February 27, 2007, and any future leases, lease amendments or lease assignments regarding the communications tower located on the City Property. Said conveyance is also subject to easements for said communications tower and for access thereto. B. The City's conveyance of the City Property to American is consideration for American's commitment to locate the Facility in Paris, Texas. PEDC shall 3230089100 14 provide owner's title insurance on the City Property in accordance with Section 3.3 herein. C. Claw back provisions as to land grant: In lieu of any restrictive covenants of title relating to economic development goals and employment metrics, the Parties have agreed that American will pay PEDC liquidated damages related to its failure to meet construction and oremployment goals subject to the terms set forth herein in Article 3.3. In the event American pays PEDC such liquidated damages, PEDC agrees to deliver 6.42% of any such payment to the City as the portion of liquidated damages attributable to the City Property. In that connection® PEDC agrees to act as the agent fiduciary of the City in determining whether such liquidated damages are due and owing from American and in collecting and distributing same to the City as set forth herein. 1. The City and PEDC shall use their best efforts to assist American in securing funding from the TXDOT or other sources in order to (a) build out to the necessary road improvements for ingress and egress on the Loop 286 truck entrance and the Park Avenue employee/office entrance and (b) improve the ninety (90) degree turn on Park Avenue to the west of the Facility. Z American will relocate, at its sole expense, a City -owned water main that lies beneath the planned footprint of the Facility. The City agrees to allow American to utilize American manufactured pipe and valves on said water main to complete the relocation. Once American has relocated the water main, American will grant the City an easement for access to and maintenance of said water main. E Permitting: 1. The City will work closely with American to ensure that all locally controlled permitting required for construction and occupancy will be "fast tracked." In that connection, the Parties further understand and agree that American must meet certain legal requirements before the City can issue permits necessary for utilities, land grading, and construction, and that consequently, the City cannot issue such permits until after American has submitted completed applications 32300891 00 15 for same and the City has determined that American is qualified to receive such permits. Once the proper applications have been received, the City agrees to use its best efforts to process same so that permits may be issued promptly. 2. The City permits American, at American's expense, to utilize city - approved, third -parry plan reviewers for the issuance of permits associated with construction and occupancy of the Facility. The City further agrees that for any permits for which American utilizes third - party reviewers, the City will waive any associated City permit fees. The City shall engage said third -party plan reviewers and will invoice American for their services. American agrees to pay said invoices within 15 days of receiving same. For the purposes of this paragraph, the Parties agree that American will accept delivery of the third -party permit review services invoices via electronic mail at an address provided by American on its permit applications. F. Environmental remediation and rail: The City represents and warrants that there are no known environmental concerns on the City Property. In light of the City's representation, the City assumes no responsibility or liability with respect to the environmental remediation set forth in Article III herein, nor does the City assume any responsibility related to the rail provisions set forth in Article III herein other than to use its best efforts to assist the PEDC in acquiring Community Development Block Grants (CDBGs) for improvement of rail to the Property and any associated permitting. G. Reporting Requirements: American has agreed to follow the semiannual reporting and certification requirements contained in Article III hereinabove with respect to its Performance Agreement with PEDC. American agrees that PEDC may forward those reports and certifications to the City for the City's records. PEDC agrees that upon receipt of any such report or certification, it will promptly forward same to the City. Article V—Duties, Warranties, and Representations Applicable to the Performance Agreement and the 380 Agreement2 The following are applicable to both the Performance Agreement set forth in Article III and the 380 Agreement set forth in Article IV of this Master Agreement: 2 The Tax Abatement Agreement attached hereto as EXhiihit C, shall have its own terms and conditions and is not included in Articles V and VI despite references in these Articles to the Master Agreement. 32300891 00 16 A. American will construct a spiral weld pipe mill Facility at the Property and once constructed, will operate and maintain said Facility as a spiral -weld pipe mill throughout the duration of this Master Agreement. B. Except in the event of a timely protest or contest of such taxes, American will pay all taxes when due, including but not limited to: federal employment, payroll and Medicare taxes on its employees; all state and local sales and use taxes and excise and franchise taxes; and all ad valorem taxes on all real and personal property not otherwise abated by the Tax Abatement Agreement attached hereto as Exhibit C. C. American agrees not to knowingly employ undocumented workers at the Facility and shall not otherwise violate 8 U.S.C. Section 1324a(f) regarding the employment of undocumented workers during the term of this Performance Agreement. D. American is limited liability company duly organized, validly existing and in good standing under the laws of the State of South Carolina, has all the power and authority necessary to carry on its business in the State of Texas, and has filed with and received from the Secretary of State of Texas, its Certificate of Existence to transact business in Texas. E. American has the authority to enter into and to perform this Master Agreement, and represents that it has the intention of constructing and operating a spiral weld pipe mill in Paris, Lamar County, Texas and to create and retain new jobs at the Facility as described herein. F. American has received at this time all necessary rights, licenses® leases, permits and other evidences of authority to conduct and carry on its business in the State of Texas in accordance with the representations which it has made to P and the City herein. G. American is aware of the statutory limitations upon PEDC in entering into this Master Agreement pursuant to the provisions of the Texas Economic Development Corporation Act, TEx. Loc. GOVT CODE ANN., CHAPTERS 501 AND 504. American further acknowledges and agrees that the land and funds provided to it hereunder as an economic incentive for building the Facility and creating new jobs in Paris, Lamar County, Texas, shall be utilized solely for the purposes authorized under the Texas statute just cited and the terms 17 32300891 00 of this Master Agreement. If an audit should ever determine that the land and funds were not utilized by American for these purposes, or were not expended on the Facility in Paris, Lamar County, Texas, such determination shall constitute a default under this Master Agreement, thereby entitling PEDC to recapture all grants of funds made hereunder as well as the full fair market value of the land conveyed to American hereunder, as well as any other remedy available to PEDC by law. In this regard, American agrees that it will provide to PEDC within thirty (30) days after request from PEDC, a consolidated report evidencing the expenditure of the funds received from the PEDC to confirm the proper use of PEDC sales tax funds by American and to verify the terms and provisions of this Master Agreement. H. American represents that it is not involved in any bankruptcy proceedings at this time, and that it has not filed a petition in bankruptcy, nor are any such proceedings contemplated by any of them at this time. I. The person signing this Master Agreement on behalf of American is duly authorized to do so and American shall deliver to the PEDC upon execution of this Master Agreement, a copy of the resolution authorizing the execution, delivery and performance of this Master Agreement, together with an incumbency certificate identifying its executive officers and the officer or manager signing this Master Agreement. J. The City and PEDC acknowledge that American is a socially conscious company, particularly with respect to providing optimal working conditions for its employees. American agrees that it intends to use its best efforts to be a responsible corporate citizen in Paris and Lamar County for the mutual betterment of American and the businesses and residents of the community. 5.2 PEDC's Other Representations, Warranties and Obligations A. PEDC has the authority to enter into and to perform this Agreement. B. The person signing this Agreement on behalf of the PEDC is duly authorized to do so by the Board of Directors of the PEDC. 5.3 The City's Other Representations, Warranties and Obligations. A. The City has the authority to enter into and to perform this Agreement. B. The person signing this Agreement on behalf of the City is duly authorized to do so by the City Council of the City of Paris, Texas. 32300891 00 1" Jill III I � I 1 111111 A. This Master Agreement sets forth the entire understanding between the parties, and any other understandings or agreements pertaining to the subject matters of this Master Agreement shall be superseded by this Master Agreement upon the date of execution hereof. None of the terms of Master Agreement shall be waived, discharged, altered or modified in any respect, except by an agreement in writing signed by all of the parties and specifically referring to this Master Agreement. This Master Agreement is performable in Paris, Lamar County, Texas, and shall be governed by, construed and enforced in accordance with the laws of the State of Texas. The provisions of this Master Agreement shall apply to, bind and inure to the benefit of the City, PEDC, American, and their respective successors and permitted assigns, if any. B. Neither this Master Agreement, nor any interest therein® shall be assigned by American without the prior written consent of PDC and the City. Co Venue for any actions arising under this Master Agreement shall lie exclusively in the courts of Lamar County, Texas, for any state court action, and.in the U.S. District Court for the Eastern District of Texas for any Federal Court action. D. All representations, warranties, covenants and agreements of the parties, as well as any rights and benefits of the parties, pertaining to the transactions contemplated hereby shall survive the original execution date of this Master Agreement. E. Any notices required to be given hereunder shall be in writing and shall be deemed to be duly delivered by mailing the same postage prepaid, by certified mail, return receipt requested, to the parties at the addresses shown beneath their signatures to this Agreement. Any notice or other communication pursuant to this Agreement shall be deemed to have been duly given or made and to have become effective upon the placement with the U.S. Postal Service for delivery. Addresses or may be changed by a party only by giving written notice of such change to all other parties in accordance with this paragraph at least five (5) days in advance of delivering the notice by mail. Such notices shall be delivered as follows: 32300891 00 19 Pat Hook, VP of Operations American SpiralWeld Pipe Company, LLC 2061 American Italian Way Columbia, SC 29209 With a Copy Ta W. Lee Thuston Burr & Forman, LLP 420 North 20th Street Suite 3400 Birmingham, AL 35203 To PEDC: Paris Economic Development Corporation 1125 Bonham St. Paris, Texas 75460 To the Cite: City Clerk City of Paris P.O. Box 9037 Paris, TX 75461-9037 With a Copy To: City Attorney City of Paris P.O. Box 9037 Paris, TX 75461-9037 F. Force majeure: If the performance of this Master Agreement or any obligations hereunder is prevented, interfered with or restricted by any force majeure event as defined herein, American shall, upon giving prompt notice to PEDC and the City, be excused from such performance during such prevention, restriction or interference, and any failure or delay resulting therefrom shall not be considered a breach of this Master Agreement. In this connection, American shall notify PEDC and the City when the force majeure event has ended and American reasonably can resume its obligations under this Master Agreement, and applicable deadlines as to construction and 32300891 00 20 employment metrics will be recalculated from that point. Alternatively, the Parties hereto may amend this Master Agreement to provide for more appropriate terms given the occurrence of the force *, Partiesure event. G. All the acknowledge that this {. Agreement 4, negotiationmutual drafted applicationand PEDC and for American. As such, the doctrine of construction against the drafter shall have no to this - acknowledged Agreementoand shall not be deemed to create { LIABLEBE ANY A " +R INJURY OF ANY KIND OR CHARACTER TO ANY PERSON ARISING; OR OMISSIONS OF AMERICAN PURSUANT TO THIS MASTER AGREEMENT.AMERICAN II, WAIVES ALL CLAIMS AGAINST A- THEIR OFFICERS,AGENTS ;4D EMPLOYEES ; (COLLECTIVELY REFERRED TO IN THIS SECTION S „ AND ,. :,,IY ; RESPECTIVELY) FOR DAMAGE TO ANY PROPERTY OR DEATH ANY PERSON AT D FROM ANY t. EXCEPT FOR INJURY - DAMAGE CAUSED IN WHOLE OR IN PART B NEGLIGENCETHE OTHER MISCONDUCT OF CITY OR PEDC. AMERICAN► SAVE HARMLESS AND AND AGAINST ANY AND ALL a, ` ,f CLAIMS, SUITSi COSTS (INCLUDING COURT COSTS, ATTORNEYS' FEES AND COSTS OF INVESTIGATION) AND ACTIONS OF ANY KIND BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE r ''',1; " RAMERICAN'S BREACH CONDITIONS OR BY REASON ANY ACT PART OF AMERICAN, ITS OFFICERS, DIRECTORS, SERVANTS, AGENTS, EMPLOYEES, REPRESENTATIVES, SUCCESSORS OR ASSIGNS IN THE PERFORMANCE OF THIS AGREEMENT (EXCEPT WHEN SUCH LIABILITY, ATTRIBUTEDINJURIES, DEATH, OR DAMAGES ARISE FROM OR ARE THE NEGLIGENCE OR OTHER MISCONDUCT IN WHOLE OR IN PART OF THE CITY .: PTHIS INDEMNITY PROVISION DOES NOT INCLUDE ANY OBLIGATIONS THE CITY OR AMERICAN PEDC TO INDEMNIFY , BROUGHT ' BY - k,D PARTIES CONTESTING THE TERMS OF THIS MASTER 32300891 00 21 DEVELOPMENT AGREEMENT AND AGREEMENTS RELATED THERETO. NOTWITHSTANDING ANYTHING IN THIS PROVISION TO THE CONTRARY, IN THE EVENT OF JOINT OR CONCURRENT NEGLIGENCE OF BOTH THE CITY AND AMERICAN, OR BOTH PEDC AND AMERICAN, OR OF ALL THREE PARTIES, THE RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO CITY AND/OR PEDC AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. IF ANY ACTION OR PROCEEDING SHALL BE BROUGHT BY OR AGAINST THE CITY AND/OR PEDC IN CONNECTION WITH ANY SUCH LIABILITY OR CLAIM, AMERICAN SHALL BE REQUIRED, ON NOTICE FROM CITY AND/OR PEDC, TO DEFEND SUCH ACTION OR PROCEEDINGS AT AMERICAN'S EXPENSE, BY OR THROUGH ATTORNEYS REASONABLY SATISFACTORY TO THE CITY AND/OR PEDC. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND NOT INTENDED TO CREATE ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. J. In the event any one or more of the provisions contained in this Master Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions. Article V—Tax Abatement Agreement between the City and American Pursuant to Chapter 312 of the Texas Tax Code, the City and American enter into the Tax Abatement Agreement attached hereto as Exhibit C and incorporated by reference as if set forth herein in full. [Remainder of this page is left intentionally blank.] 3230089100 22 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date set forth below. WITNESS our hands this ® day of.... - ................................... .., 2018. CITY OF PARIS: CITY OF PARIS, TEXAS Name: STEVEN J. CLIFFORD, M.D. Title: MAYOR ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Remainder of this page is intentionally left blank. 32300891 00 23 PEDC: PARIS ECONOMIC DEVELOPMENT CORPORATION, A Texas Non -Profit Corporation By. Name: RICHARD MANNING Title: CHAIRMAN OF THE BOARD ATTEST: AMERICAN: AMERICAN SPIRALWELD PIPE COMPANY, LLC, A South Carolina Limited Liability Company Name: PATRICK J. HOOK Title: VICE PRESIDENT OF OPERATIONS ATTEST: 32300891 00 24 EM Metes and Bounds Description 88.58 Acres City of Paris Lamar County, Texas July 2018 Being 88.58 acres of land situated within the corporate limits of the City of Paris, being a part of the John Herrington Survey, Abstract Number 436 and a part of the Francis Morrison Survey, Abstract Number 592, said 88.58 acres being a part of a called 151.089 acre tract of land conveyed fram The Paris Texas Industrial Foundation, Inc to Paris Economic Development Corporation on November 18, 2003 by Gift Deed recorded in volume 1403, page 53 of the Official Public Records of Lamar County, Texas, all of a tract of land conveyed from Power Innovations Group, Inc to Paris Economic Development Corporation on October 12, 2016 by Warranty Deed recorded in Lamar County Clerk's Document Number 137424-2016 (no Exhibit A property description attached, originally part of the aforementioned called 151.089 acre tract), all of a called 14.41 acre tract of land conveyed from Marsha R. Russell to Paris Economic Development Corporation on April 28, 2008 by General Warranty Deed recorded in Lamar County CIerks Document Number 058950-2008 and all of Lot 1, Block C of the Northwest Paris Industrial Parkas shown on the Final Plat recorded in Envelope 386-C of the Plat Records of Lamar County Texas (said Lot I also originally part of the aforementioned called 151.089 acre tract of land). The said 88.58 acre tract fully described by metes and bounds as follows: Beginning at a % inch iron rod found at the southeast corner of the aforementioned called 14.41 acre Paris Economic Development Corporation (hereafter called PEDC) tract, said rod also being the southwest corner of a called 23.06 acre tract of land conveyed from Ben D. Faber, Jeffrey L. Faber and Sarah M Faber to Paris Economic Development Corporation on April 23, 2008 by Warranty Deed Recorded in Lamar County Clerk's Document Number 058803-2008, and said rod also being in the north right of way line of Campbell Street (variable width right of way); Thence S 89638'42" W, along the south boundary line of the aforementioned called 14.41 acre PEDC tract and the north right of way line of Campbell Street, a distance of 665.44 feet to a h inch capped [Nelson] iron rod found at the southwest corner of said called 14.41 acre PEDC tract and at the southeast corner of a tract of land conveyed from Thomas Johnson to Carolyn Johnson on March 26, 1996 by Warranty Deed recorded in volume 596, page 164 of the Real Property Records of Lamar County; Thence N 01 034'40" W, along the west boundary line of the aforementioned called 14.41 acre PEDC tract and along the east boundary line of the aforementioned Johnson tract, passing the northeast corner of said Johnson tract and the current most northern southeast comer of a called 9.75 acre tract of land conveyed from James R. Lane to Grady Finney on April 30, 1997 by deed recorded in volume 687, page 116 of the Real Property Records of Lamar County, and continuing on along the east boundary line of said Finney tract and said called 1.4.41 acre PEDC tract, for a total distance of 492.57 feet to a 5/a inch iron rod found at the northeast coiner of said Finney tract and at the most southern southeast corner of the aforementioned called 'IS 1.089 acre PEDC tract; Thence S 88°20'31" W, along the north boundary line of the aforementioned Finney tract and the most southern south boundary line of the aforementioned called 151.089 acre PEDC tract, at a distance of 958.36 feet passing a '/z inch capped iron rod set as witness and continuing on for at total distance of 983.36 feet to a point in a Lake/Tond for comer at the most southern southwest corner of said called 151.089 acre PEDC tract and said rod also being in the east boundary line of Cedar Hill Addition ash shown on the Plat of said addition recorded in Envelope 25-B of the Plat Records of Lamar County; Thence N 0045127" W, along the common boundary line of the aforementioned called 151.089 acre PEDC tract and the aforementioned Cedar Hill Addition, at a distance of 25.00 feet passing a 'A inch capped iron rod set as witness and continuing on for a total distance of 742.24 feet to a % inch iron rod found at an inner corner of said called 151.089 acre PEDC tract and at the northeast corner of said Cedar Hill Addition, and said rod also being the southeast corner of Lot 1, Block C of the aforementioned Northwest Paris Industrial Park; Thence N 8921 '42" W, along the north boundary line of the aforementioned Cedar Hill Addition, along a south boundary line of the aforementioned called 151,089 acre PEDC tract and along a south boundary line of the aforementioned Lot 1 Page 1 of S t 1, Block C, a distance of 816.76 feet to a'Is inch iron rod found at an inner comer of said called IS 1.089 acre PEDC tract and at 'the northwest comer of said Cedar Hill Addition; Thence S 00°3V] 6" E, along the common boundary line of the aforementioned called 151.089 acre PEDC tract, the aforementioned Lot 1, Block C and the aforementioned Cedar Hill Addition, a distance of 25.84 feet to a'A inch iron rod found at the northeast corner of a called 6.443 acre tract of land conveyed from Janis McCain to Paris Economic Development Corporation on May 15, 2009 by General Warranty Deed recorded in Lamar County Clerk's Document Number 070433-2009; Thence S 8337'11 " W, along the north boundary line of the aforementioned called 6.443 acre tract, the south boundary line of the aforementioned called 151.089 acre PEDC tract and the south boundary line of the aforementioned Lot 1, Block C, a distance of 352.83 feet to a'/z inch iron rod found at the northwest corner of said called 6.443 acre tract and at an inner comer of said called 151.089 acre PEDC tract; Thence S 84°08'32" W, along the south boundary line of the aforementioned Lot 1, Block C, a distance of 39.50 feet to a % inch capped iron rod [K JONES] found at the southwest corner of said Lot 1, Block C, and said rod is in a curve to the right having a central angle of 13°36'30" and a radius of 950.00 feet; Thence along the aforementioned curve to the right in the west boundary line of Lot 1, Block C an arc distance of 225,64 feet (chord bearing and distance of N 16°22'23" B, 225.11 feet) to a % inch capped [K JONES] iron rod found at the beginning of a curve to the left having a central angle of 14°42'39" and a radius of 1,031.12 feet; Thence along the aforementioned curve to the left and the west boundary line of Lot 1, Block C, an arc distance of 264.74 feet (chord bearing and distance of N 15°48'22" E, 264.01 feet) to a 1/2 inch capped [K JONES] iron rod found at the end of said curve; Thence N 07°12'57" E, along the west boundary line of the aforementioned Lot 1, Block C, a distance of 35.84 feet to a % inch capped iron rod set at the beginning of a curve to the right having a central angle of 90047'11 " and a radius of 14.00 feet: Thence along the aforementioned curve to the right and the boundary line of Lot 1, Block C, an arc distance of 22.18 feet (chord bearing and distance of N 51'55'41 " E, 19.93 feet) to a'h inch capped iron rod set at the beginning of a curve to the left having a central angle of 17°31'43" and a radius of 2,740.00 feet, said rod also being in the south line of a called 80 foot wide right of way as shown on the aforementioned plat of Northwest Paris Industrial Park; Thence along the aforementioned curve to the left and along the north boundary lure of the aforementioned Lot 1, Block C, and also along the south line of the aforementioned called 80 foot wide right of way, an are distance of 838.26 feet (chord bearing and distance of N 88°25'54" E, 834.99 feet) to a % inch capped iron rod set at the beginning of another curve to the left having a central angle of 11 °33'39" and a radius of 1,027.50 feet; Thence along the aforementioned curve to the left and along the north boundary line of the aforementioned Lot 1, Block C, and also along the south line of the aforementioned called 80 foot wide right of way, an arc distance of 207.32 feet (chord bearing and distance of N 75°08'50" E, 206.97 feet) to a '/ inch capped [K JONES] iron rod found at the northeast corner of said Lot 1, Block C; Thence N 20°41'06" W, along the east boundary of the aforementioned Northwest Paris Industrial Park, a distance of 79.88 feet to a'/2 inch iron rod found at the beginning of a curve to the right having a central angle of 11 '34'14" and a radius of 950.31 feet, and said rod also being in the north line of the aforementioned called 80 foot right of way; Thence along the aforementioned curve to the right and along the north line of the aforementioned called 80 foot wide right of way an are distance of 191.91 feet (chord bearing and distance of S 75009'i2" W, 191.58 feet) to a'A inch capped [K JONES] iron rod found at the beginning of another curve to the right having a central angle of 06°48'07" and a radius of 2,669.04 feet); Thence along the aforementioned curve to the right and along the aforementioned called 80 foot wide right of way, an are �diista�nce of 316.86 feet (chord bearing and distance of S 83003'22" W. 316.68 feet) to a'A inch capped iron rod set at the PAge 2 of 5 F southeast corner of Lot 2, Block B of the aforementioned Northwest Paris Industrial Park as conveyed from Paris Economic Development Corporation to Meshbesher Properties LLC on April 07, 2005 by Warranty Deed recorded in volume 1600, page 227 of the Official Public Records of Lamar County; Thence N 00°51'44" E, along the east boundary line of the aforementioned Lot 2, Block B and along the approximate centerline of a rock lined drainage ditch a distance of 640.17 feet to a point in said rock lined drainage ditch at the northeast corner of said Lot 2, Block B, and in the south boundary line of Lot 1, Block B as shown on the aforementioned plat of Northwest Paris Industrial Park; Thence N 88120'04" E, along the south boundary lane of the aforementioned Lot 1, Block B, at 30.00 feet passing a 1h inch capped iron rod set as witness and continuing on for a total distance of 603.80 feet to a % inch iron rod found at the southeast corner of said Lot 1, Block B, at an angle point in the north boundary line of the aforementioned called 151.089 acre PEDC tract, and at the southwest coiner of a called 20 acre tract of laud conveyed from Focus Housing LP to Paris Economic Development Corporation on May 18, 2018 by Warranty Deed recorded in Lamar County Clerk's Document Number 153193- 2018; Thence N 65053'06" E, along the common boundary line of the aforementioned called 151.089 acre PEDC tract and the aforementioned tailed 20 acre PEDC tract a distance of 258.35 feet to a 1h inch capped iron rod set for comer; Thence S 24°06'54" E, a distance of 181.00 feet to a % inch capped iron rod set for corner; Thence N 65°53'06" E, a distance of 40.00 feet to a''/a inch capped iron rod set for comer; Thence N 214°06'54" W, a distance of 181.00 feet to a'/z inch capped iron rod set for corner in the north boundary line of the aforementioned called 151.089 acre PEDC tract and in the south boundary line of the aforementioned called 20 acre PEDC tract; Thence N 65153'06" E, along the common boundary line of the aforementioned called 20 acre PEDC tract and the aforementioned called 151.089 acre PEDC tract, a distance of 576.86 feet to a 1h inch capped [Nelson] iron rod found at a northern northeast corner of said called 151.089 acre PEDC tract and at the northwest corner of a called 2.182 acre tract of land containing an old railroad spur as conveyed from Paris Texas Industrial Foundation, Inc to Paris Economic Development Corporation on September 10, 2010 by Deed Without Warranty recorded in Lamar County Clerk's Document Number 109471- 2013; Thence S 24°04'49" E, along the east boundary line of the aforementioned called 151.089 acre PEDC tract and the west line of the aforementioned called 2.182 acre PEDC tract, a distance of 8738 feet to a % inch iron rod found; Thence N 59° 12'00" E, along the north boundary line of the aforementioned called 151.089 acre PEDC tract and the south line of the aforementioned called 2.182 acre PEDC tract, a distance of 146.10 feet to a'/a inch iron rod found at a northeast corner of said called 151.089 acre PEDC tract and at the northwest corner of the aforementioned T&K Machine 355 Addition as conveyed from TBEI, L.P. to MFRE Tarts, LLC on June 11, 2015 by Special Warranty Deed with Vendor's Lien recorded In Lamar County Clerk's Document Number 125679-2015; Thence S 01°51'02" E, along the common boundary line of the aforementioned called 151.089 acre PEDC tract and the aforementioned T&K Machine 355 Addition a distance of 105.13 feet to a'/ inch iron rod found at the southwest comer of said T&K Machine 355 Addition; Thence S 01'58'51" E, a distance of 99.84 feet to a % inch iron rod found at the northwest corner of a called 5.739 acre tract of land conveyed from Paris Economic Development Corporation to Mark Cunningham on January 12, 2010 by Special Warranty Deed recorded in Lamar County Clerk's Document Number 075598-2010; Thence S 01'3528" E, along the west boundary line of the aforementioned called 5.739 acre Cunningham tract, a distance of 500.50 feet to a � inch iron rod found at the southwest comer of said called 5.739 acre Cunningham tract; KV Page 3 of 5 Thence N 88°03'26" E, along the south boundary line of the aforementioned called 5.739 acre Cunninghamn tract, at a distance of 500.18 feet passing a'/z inch iron rod found at the southeast corner of said called 5.739 acre Cunningham tract and continuing on for a total distance of 549.74 feet to a'A inch capped iron rod set in the cast boundary line of the aforementioned called 151,089 acre PEDC tract and in the west boundary line of a called 6,97 acre tract of land conveyed from Rex Adams to Shirley F. Adams McMillan on July 29,1995 by Special Wananty Deed recorded in volume 543, page 106 of the Real Property Records of Lamar County; Thence S 01 °36'34" E, long the common boundary line of the aforementioned called 151.089 acre tract and the aforementioned McMillan tract, passing the southwest corner of said McMillan tract and the northwest corner of a tract of land conveyed from Dean E. Wissinger to Toby Rex Adams on February 09, 2017 by General Warranty Deed recorded in Lamar County Clerk's Document Number 140606-2017, and continuing on along the common boundary line of said called 151.089 acre tract and said Adams tract for a total distance of 464.98 feet to a'/ inch iron rod found in concrete at the most eastern southeast corner of said called 151.089 acre tract and at the southwest corner of said Adams tract, said rod also being the current northeast corner ofthe remainder of a called 107 acre tract of land conveyed from Lamar Building and Loan Association of Paris to The City of Paris on January 25,1935 by Deed recorded in volume 238, page 594 of the Deed Records of Lamar County, and said rod also being the northwest comer of a tract of land conveyed from Ronald B. Martian and wife Kathleen K Lamar Martin to Lar County Human Resources Council, Inc on July 16, 1999 by Warranty Deed recorded in volume 897, page 67 of the Real Property Records of Lamar County; Thence S 86°16' 10" W, along the most northern south boundary line of the aforementioned called 151.089 acre PEDC tract and the current north boundary line of the remainder of the aforementioned called 107 acre City of Paris tract, a distance of 655.51 feet to a %g inch iron rod found at an inner corner of said called 151.089 acre tract and at the current northwest oorner of the remainder of the called 107 acre City of Paris tract; Thence S 02°17'26" E, along the southernmost east boundary line of said called 151.089 acre tract and the southernmost west boundary line of the aforementioned called 107 acre City of Paris tract, a distance of 599.79 feet to a s/8 inch iron rod found at the most southern southwest corner of said called 107 acre City of Paris tract; said rod also being the northwest comer of the aforementioned called 14.41 acre PEDC tract; Thence N 88°16'30" E, along the most southern south boundary line of the aforementioned called 107 acre City of Paris tract and the north boundary line of the aforementioned called 14.41 acre PEDC tract, a distance of 653.63 feet to a % inch iron rod found at the most southern southeast corner of said called 107 acre City of Paris tract and at the northeast corner of said called 14.14 acre PEDC tract, and said rod also being in the west boundary line of a called 5A75 acre tract of land conveyed from Faith Tabernacle Church to Family Worship Center of Paris on August 20, 1992 by Warranty Deed recorded n volume 305, page 165 of the Real Property Records of Lamar County Texas; Thence S 02°09'03" E, at 29.08 feet passing a % inch iron rod found at the southwest comer of the aforementioned called 5.475 acre Family Worship Center tract and at the northwest corner of the aforementioned called 23.06 acre PEDC tract and continuing on for a total distance of 960.46 feet to the place of beginning and containing 88.58 acres of land. NOTES 1. The Reference Bearing for tho tract of land described hereon is NAD 1983 Texas State Plane Coordinate System Zone 4202. 2. A one page 18" X 24" sized plat that shows the tract of land described herein accompanies this metes and bounds description and is considered to be a part of this document. I, KEVIN K. WHITLEY, REGISTERED PROFESSIONAL LAND SURVEYOR, #5892, STATE OF TEXAS, DO HEREBY CERTIFY THAT THE ABOVE DESCRIPTION IS TAKEN FROM MEASUREMENTS MADE UPON THE GROUND AND WAS COMPLETED ON JULY 05, 2018. _.. .. w..:w�������........r _.. ..�... ... .. . KEVIN I�. WHITLEY, S DATE Page 4of5 EXHIBIT I_�i11CIY� E-7 STATE OF TEXAS ) COUNTY OF LAMAR ) TAX ABATEMENT AGREEMENT This Tax Abatement Agreement (the "Agreement") is entered into by and between the CITY OF PARIS, TEXAS, a municipal corporation, situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "City"), and AMERICAN SPIRALWELD PIPE COMPANY, LLC, acting by and through its authorized officer whose signature appears below (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, the City Council of the City of Paris did heretofore, on the 22nd day of January, 2018, in Resolution No. 2018-004, elect to be eligible to participate in tax abatement agreements in order to maintain and enhance the commercial and industrial economic and employment base of the Paris area for the long term interest and benefit of the City and its citizens; and, WHEREAS, under the Texas Enterprise Zone Act (Government Code Chapter 2303), the designation of an area as an Enterprise Zone also constitutes designation of the area as a reinvestment zone (the "Reinvestment Zone"); and WHEREAS, concurrently herewith, the City and Owner and the Paris Economic Development Corporation, a Type A economic development corporation with the duties and authorities granted to it in Tex.Loc.Gov. Code Chapters 501 and 504, are executing a Master Economic Development Agreement, to which this Agreement is attached as Exhibit C and incorporated therein by reference, conveying certain real property (the "Property") to Owner as an inducement to Owner to construct and operate a spiral weld pipe manufacturing mill; and WHEREAS, pursuant to the 2010 Census, the Property within City of Paris, Lamar County, Texas, is included within an Enterprise Zone, as is shown in the print-out from the Office of the Governor of the State of Texas on its website in Exhibit 1, attached hereto and made a part hereof for all purposes; and WHEREAS, Owner has agreed to make the Improvements specified herein, said Improvements related to the construction of the spiral weld pipe manufacturing mill referred to herein above; and WHEREAS, in connection with the Master Economic Development Agreement, the Owner has agreed to create and maintain at least sixty (60) full-time equivalent employment positions; and WHEREAS, the contemplated use of the Improvements, as hereinafter defined, in the amount as set forth in this Agreement upon and within the Property, and the other 1 32322920 v5 terms hereof are consistent with encouraging development of said Enterprise Zone in accordance with the purposes for which it was created and are in compliance with the City's policy on tax abatement incentives and the ordinance creating such Enterprise Zone adopted by the City and all applicable laws; and NOW, THEREFORE, pursuant to Chapter 312 of the Texas Tax Code and the Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2016-08, the parties hereto do mutually contract and agree as follows: I. Term 1.1 The effective date of this Agreement is the 24th day of September, 2018, with the tax abatement being effective from and after January 1, 2020, and terminating on December 31, 2026 (an abatement period of seven (7) years (the "Abatement Period")). Said Abatement Period will terminate on December 31, 2026, regardless of when Owner completes the Improvements described in Sections II and III herein below. II. The "Property" - Area to be Improved 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Property located in Paris, Lamar County, Texas Plant and described in Exhibit 2, attached hereto and incorporated herein by reference, which Property is within the Enterprise Zone. III. Consideration: Improvements 3.1 The Owner shall construct and operate a state of the art spiral weld steel pipe plant (herein called the "Improvements") at the Property located in Paris, Lamar County, Texas, which are more particularly described in ExhJbit 3. attached hereto and incorporated herein by reference. The Improvements shall include the production facility, an office building, and the installation of equipment to manufacture steel pipe and will service large diameter water transmission projects in the South Central United States. When completed, the Improvements will contain approximately 250,000 square feet under roof. The manufacturing process will require substantial land dedicated to pipe laydown or storage prior to shipment. The majority of the finished product will typically be shipped within a 250 to 500 mile radius of the Improvements via flatbed carrier. Over a period of three years, beginning in 2018, Owner commits herein to invest no less than $72,000,000.00 and up to approximately $91,000,000.00 to construct the Improvements, which shall be completed prior to September 1S, 2021. All of said improvements shall be described in the City's Certificates of Completion defined Section X, "Reporting Requirements." For the purposes of this the default provision of this Tax Abatement Agreement (Section V), the Improvements will be deemed completed upon the issuance by the City of Certificates of Occupancy for the structures included in the 2 32322920 v5 Improvements. Once Owner has applied for said Certificates of Occupancy, the City shall not unreasonably delay the issuance of same. Notwithstanding the foregoing, however, Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God, any natural disaster, war, riot civil commotion, insurrection, governmental or de facto governmental action unless caused by acts or omissions of Owner, fires, explosions, accidents, floods, and labor disputes or strikes. 3.2 The Owner agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the Improvements. As good and valuable consideration for this Agreement, Owner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws, codes and regulations, or Owner will procure a valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificates of Occupancy for the structures on the Property are issued or the Improvements are completed as agreed until the expiration of this Agreement, continuously operate and maintain the Property and the Improvements as a spiral weld pipe manufacturing plant. IV. Consideration Jobs 4.1 The City has provided in its Guidelines and Criteria for Tax Abatements, that in order to be eligible for a tax abatement, a new employer must make a minimal capital investment of $1,000,000.00 and create at least ten (10) new jobs. Owner herein has committed to a minimum investment of $72,000,000.00, and as a part of the Master Economic Development Agreement, has committed to creating at least sixty (60) new full- time equivalent positions with an estimated direct payroll of approximately $3,147,027.00. Due to the substantial penalties set forth in Master Economic Development Agreement should Owner fail to create and maintain said sixty (60) full-time equivalent positions, the City has agreed to forego any penalties for such failure in this Tax Abatement Agreement. In so doing, the City Council has determined that the penalties set forth in the Master Economic Develop Agreement provide sufficient protections for the City. V. Default 5.1 In the event that (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or the expenditure for the Improvements does not meet the amount required herein; or (b) 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 (c) Owner materially breaches any of the other terms and conditions of this Agreement, then this Agreement shall be in default. In the event the Owner defaults in its performance of either 3 32322920 v5 (a), (b), or (c) above, the City shall give the Owner written notice of such default. If the Owner has not cured such default within sixty (60) days of said written notice, this Agreement may be modified or terminated by the City. Notice shall be in accordance with paragraph 13.3. 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 a determined by Section 33.01 of the Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owning, and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. VI. 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, a portion of ad valorem Property taxes from the Property otherwise owed to the City shall be abated. Said abatement shall be an amount equal to the following percentages of the taxes assessed upon the increased value of the Improvements made by Owner to the Property described in Section III of this Agreement, over the value in the year which this Agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers 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: Year 1 100% Year 2 100% Year 3 70% Year 4 70% Year 5 50% Year 6 25% Year 7 25% For the purposes of this Agreement, the Base Value of the existing real property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2018. 6.2 The abatement granted herein shall be subject to and governed by the Criteria and Guidelines for Tax Abatement, a copy of which is attached hereto as Exhibit 4 and incorporated herein by reference, save and except that, in the event of a conflict between the requirements of Exhibit 4 and this Agreement, this Agreement shall control. 4 32322920 v5 6.3 Owner covenants and agrees that subsequent to the date of this Agreement, any application by Owner for a new tax abatement for equipment or real property located within the Property and the Enterprise Zone applicable to this Agreement shall be subject to and governed by the City's Criteria and Guidelines for Tax Abatement in effect at the time of the new application. VII. No Conflict of Interest 7.1 The Owner represents and warrants that the Property does not include any Property that is owned or leased by a member of the Planning and Zoning Commission of the City of Paris, nor by a member of the City Council approving, or having responsibility for the approval of, this Agreement. VIII. Conditions 8.1 The terms and conditions of this Agreement are binding upon and enforceable against and with respect to the successors and assigns of all parties hereto. 8.2 It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently; the City assumes no responsibility or liability in connection therewith to third parties; and Owner agrees to indemnify and hold the City harmless therefrom. It is further understood and agreed among the parties that the City, in performing its obligations hereunder, is acting independently; the Owner assumes no responsibility or liability in connection therewith to third parties; and, to the extent permissible by law, the City agrees to indemnify and hold harmless the Owner therefrom. IX. Compliance Provisions 9.1 Cil hr's Ri ht of Access to Records.: The Owner agrees that the City, its agents and employees, shall have the reasonable right of access to records concerning the Owner's investment in the Improvements for the purpose of conducting an audit of the Project Improvements and Project costs. Any such audit shall be made only after giving the Owner at least fourteen (14) days advance written notice and will be conducted in such a manner as to not unreasonably interfere with the operation of the facility. Upon request, the Owner will provide the City with a detailed Asset Report with an itemized list of assets placed into service from the date of execution of this Agreement to the date of completion. The Asset Report will provide for each asset a unique serial and/or other identification number (if available), the date on which the asset was capitalized, the acquisition amount, and the accumulated depreciation amount. At the City's request, the Owner will provide actual invoices to support the amounts shown on the Asset Report. 5 32322920 v5 9.2 City's Rights of Access o Prol eriy_,The Owner further agrees that the City, its agents and employees, shall have reasonable right of access to the Property to inspect the Improvements in order to insure that the construction of the improvements is in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, the City shall have the continuing right to inspect the Property to insure that it is thereafter maintained and operated in accordance with the Agreement during the term of the Agreement. All inspections will be made only after giving the Owner written notice at least seventy-two (72) hours in advance, and such inspections shall be conducted in such a manner so as not to interfere with the operation of the facility. Representatives of the City inspecting the Property and Improvements shall be accompanied and by one (1) or more representatives of the Owner and shall sign an Agreement promising to maintain the confidentiality of any information they obtain in connection therewith except for the purposes of assessing and collecting ad valorem taxes and verifying or enforcing compliance with this Agreement, or as otherwise required by law. Said representative shall also be required to observe any facility rule and regulation applicable to the Property. Nothing herein shall be construed as limiting the City's ability to perform inspections or to enter the Property the subject of this Agreement. X. Reporting Requirements 10.1 Annual Re ort c% Im rovpments for the Years 2019-2021: The Owner further agrees that it will, by December...,31 of each year 2019-2021, provide the City with a sworn report, written on Owner's letterhead and signed by a designated representative of Owner, which contains the following information relating to the improvements completed in the applicable calendar year: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property as of January 1, 2018, prior to the construction of the Improvements; (b) Detailed description of the Improvements; (c) A detailed description of any miscellaneous items of office equipment and the actual cost of such added office equipment; (d) A copy of or identification of plans and specifications of constructed improvements and the location of the same for inspection by City's certification team; (e) A detailed list of and the actual cost of added machinery and equipment; (f) The actual cost of capital Improvements; and, (g) The date of substantial completion of the Improvements as defined in paragraph 3.1 hereof. 6 32322920 v5 10.2 Annual Report onom,pliance for Each Year of the Abatement Period: In addition to the report required in Paragraph 10.1 hereinabove, Owner further agrees that by .October 31st of each year of this Agreement it will provide the City with an annual sworn report which shall certify, in writing, that it is in compliance with each applicable term of this Agreement. Such annual report shall be furnished in the form attached hereto as Exhibit 5 and incorporated herein by reference and shall reflect the prior fiscal year. Owner shall attach thereto copies of the employer reference summary page of its Texas Workforce Commission Employer's Quarterly Reports for the calendar year immediately preceding the date of the annual report required by this section, and the report shall contain a sworn statement signed by the Plant Manager or an Officer of the Company certifying that the information provided in the summary page is a true and valid report filed with the Texas Workforce Commission. 10.3 The reporting requirements and deadlines set forth herein are an integral and material part of this Agreement, and Owner acknowledges that failure to timely submit any report or sworn statement required herein is a breach and default of this Agreement as set forth hereinabove. Owner further agrees to timely submit said reports and/or sworn statements without prompting by the City. 10.4 Owner shall submit all compliance reports required to by this section via certified mail, return receipt requested, to: City of Paris c/o Office of the City Attorney P.O. Box 9037 Paris, Texas 75461-9037 Alternatively, said reports may be delivered personally to the Office of the City Attorney at 135 SE 1st St., Paris, Texas 75460. XI. City's Certificate of Completion 11.1 Within thirty (30) days of receipt of each Annual Report on Improvements required by paragraph 10.1 hereinabove, or as soon thereafter as practicable should the City require additional information from the Owner, the City shall: (a) review same for compliance with the terms of this Agreement; (b) verify that the Improvements identified in the Report and required by the terms of this Agreement have been completed; (c) and, if the required Improvements have been made, deliver a Certificate of Completion in the forms attached hereto as Exhib.1 _6 and executed by the Mayor to the Chief Appraiser of the Lamar County Appraisal District. The City shall attach to said Certificate of Completion a copy of the information 7 32322920 v5 provided by Owner in its Annual Report on Improvements as an identification of the Improvements upon which the tax abatement is to be granted. 11.2 In the event that the City requires additional information in order to conduct the review and verification contemplated by paragraph 11.1 hereinabove, the City shall notify the Owner of same as soon as is practicable, but no later than thirty (30) days after receipt of the Annual Report on Improvements. 11.3 Nothing in this section shall prohibit the City from exercising its right to declare Owner in default or Owner's right to cure same in accordance with the terms of Section V hereinabove. XII. Authority to Contract 12.1 This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 24th day of September, 2018, authorizing the Mayor to execute the Agreement on behalf of the City. 12.2 This Agreement was entered into by American SpiralWeld Pipe Company, LLC pursuant to the authority granted to the authorized official whose signature appears below. 12.3 This Agreement shall constitute a valid and binding Agreement between the City and Owner when executed in accordance herewith, regardless of whether any other taxing unit executes a similar Agreement for tax abatement. XIII. Legal 13.1 No officer, official or agent of the City has the power to amend, modify or alter this Agreement or waive any of its conditions or to bind the City by making any promise or representation not contained herein. 13.2 This Agreement, except by operation of law, shall not be assigned or transferred by Owner, without the prior written consent of City, which consent shall be at the sole discretion of the City. 13.3 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, addressed to the designated representative of the respective parties which are designated as follows: 8 32322920 v5 OWNER: AMERICAN SPIRALWELD PIPE COMPANY LLC Attn: Pat Hook, VP of Operations 2061 American Italian Way Columbia, SC 29209 With a co ft W. Lee Thuston Burr & Forman, LLP 420 North 20th Street Suite 3400 Birmingham, AL 35203 CITY: CITY OF PARIS, TEXAS Attn: City Manager P.O. Box 9037 Paris, TX 75461-9037 With a co : to: City Clerk, City of Paris, Texas (address same as above) City Attorney, City of Paris, Texas (address same as above) 13.4 If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of this Agreement are declared to be severable. 13.5 This Agreement sets forth the entire understanding between the parties, and any other understandings or agreements shall be canceled and superseded by this Agreement upon the date of execution hereof. None of the terms of this Agreement shall be waived, discharged, altered or modified in any respect, except by an Agreement in writing signed by both parties and specifically referring to this Agreement. The captions in this Agreement are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions. This Agreement is performable in Lamar County, Texas, and shall be governed by, construed and enforced in accordance with the laws of the State of Texas. The provisions of this Agreement shall apply to, bind and inure to the benefit of the City, Owner, and their respective successors, and permitted assigns, if any. 13.6 Venue for any actions arising under this Agreement shall lie exclusively in the courts of Lamar County, Texas for any State Court action, and in the U.S. District Court for the Eastern District of Texas for any federal court action. 9 32322920 v5 13.7 Owner and the City have both contributed to the drafting of this Agreement, and no ambiguity, if any, contained in this Agreement shall be construed against either party. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date set forth below. WITNESS our hands this _ day of ................................... 2018. THE CITY OF PARIS, TEXAS Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney AMERICAN SPIRALWELD PIPE COMPANY, LLC ATTEST: Title: 10 32322920 v5 LIST OF EXHIBITS: 1. 2010 Designation of Enterprise Zone which includes the Property 2. Map of the Property 3. List of Construction Improvements and drawings showing the location of the Improvements on the Property and the layout of the buildings to be constructed on the Property 4. Resolution No. 2018-004; Criteria and Guidelines for Tax Abatement S. FORM: Annual Certificate of Compliance 6. FORMS: Certificates of Completion 11 32322920 v5 'i, / � �/ ,� ,,,iii 1 0 HIrWMiji, l f I� it N 8 7 Construction ScOM: 1. Provide construction management and general conditions to perform requested new plant operations. 2. Demolition to include removal of existing utilities as need for tie-in services.. a, 8".PVC Wafter lame .1201f b. 12"PVC WaterLige .8701f Fire Hydrant Removals -- 2 can 3. Earthwork -for production building, business office/ locker room, shipping office, graVel pipe laydon wn, concrete parking and service drives. a. Production.Buildin& i.. Moistu,trcC(ilditionit.ig]O:ftd.L,,pth ii. Select, Fill 3 ft, depth b. Business Office . i. Moishue Conditioning 10 ft depth ii. Select.Fill 3 ft depth c. Shipping Office - i.. Moisture Conditioning 10:11 depth ii., Select Fill 3Ft. depth 4. Utilities include water, f1re loop, sewer-, gas and storm water. a. 6" Sewer - 245 If' b. Water & Fire Line — 3,717 If c. Storm — 1,600 If d., Gas Line — 2,700 If e. Sewer Manholes ..... 2 ea is Fire Hydrants - 9 ea 5. Site features include extending railroad track, 6 -foot cham-link. fern; e with gatts, gravel pipe laydownn. areas, concrete pavement with pavement markings and signage. a. Railroad Track — 1,712 If' b. Chain -Link- Fence 10,400 lf c. Sliding Drive Gates - .2 ea. d. Swing Gates at Railroad 2 ea e. 'I ift Gates at Shipping Office 2 can f. 24" Gravel (Laydown Area) - 26A acres g. 8" Gravel at Paving — 370,778 sp. h. 15" Concrete Paving Aprons — 63,024 sf Rwkfiv IM(km(,hSircf,.-C 1 1 d8S, &00442 h4lkl I I t4/ ht hMl/ 8 8 7' i. 10" C'oncrete Paving at Production Building and Drives - 319,225 sf j. 6"Pavinpat.EMplog ee.Par.king-56,238s-f k. Pavement at Railroad Crossovers - 3 can 1. 4" Sidewalks/Stoops - 8,083 sf 6. Concrete fourlidations included for production building, poly storage, boiler bilkilding and business office. (Slab on Grade with associated grade beams) a. .11?rod.uctionB-aildixig--290,640sf i. 6'.-0" thick Concrete at Coiling.machine nn. 2'.-6" thick Concrete at Coil Staging Area iii. 1'.-8" -thick Concrete at Curing Area iv. P-0" ft"ck Concrete at Other Areas v. Cased Piers - 380 ea vi. Equipment.pits included as shown on layout provided vii., Concrete Slabs on Metal Deck at interior offices b. Poly Storage Building - 2,050 sf' i. P. -O" thick Concrete ji. Piers - 8 ea c. Boiler Building - 1,200 sf i. P. -O" thick Concrete iii, Piers - 4 ea, d. Business Building - 14,400 sf i. 6" thick Concrete ii. Piers .- 24 ea 7. Masonry 8" CMU walls for poly storage building, interior production offices, production restrooms and split - face CMU wainscot at business office, a. Poly Storage Building --2, ,50 sf b. Interior Production Offices & Restroorns ..- 9,500 sf c. Business Office Split -Faced CMU Wainscot .- 2,240 sf 8. Structural steel supports for 3 areas of,production cranes, roof structures for CW walls areas, bollards, ladders, and ernbeds. a. Roof Ladders - 2 ea b. Bollards ..- 300 ea c. Concrete Embeds at Machinery -Allowance d. Embeds, Joists and Metal.Dec kiron g i. Interior Offices ..- 5,000 sf d. Production Area Restroorns -6.10 sf iii.. production Coil Office - 144 sf iv., Poly Storage ....-2,050 sf e. Independent Crane Steel Structures -- 3 ea Sir, , � Irj "c'uIh (hu'(+ ",TwO 8 ['�'cl5 /541,,U 1 903 /8'� Ulx'.6 200.r4 d [Mm I I -ffli /R4 1476 I dw,,J.jgjq 'un 8 8 7' 9. Millwork cabinets and countertops have lbeen included for lbreakroorns in production office and Ibusiinness of areas. a. Production. Offices - Allowance of $32,000.00 b,. Business Office - Allowance $22,000.00 10. Expansion/ control joint sealants for paving, foundations, and ("I'MIJ walls. I I . Hollow mall frayes, hollow metal & wood doors with hardware for production building, business office/ locker room and shipping office. 12. Ovedhead steel rolling doors at production'building. an. 20'.-0" x 1.6'-0" OR. Coiling Doors — 22 ea lb. 26".....0"' x 20'-0" O.H. Coiling Doors — 5 ea. c. 12'.-0" x 89.-0'01.1. Coiling Doors - 3 ea d. 20'.-0" x 60'-0" Manual Sliding Door - I ea 1. , Interior stud framing and drywall, ceilings, painting, floor finishes, iscellaneous specialtiesfor production office/ restrooms, business office/ locker room and shipping of 4R"evel,ei--­ani d­ff stf 15. Appliance allowance for production and business office breakxoom areas. 16. Pre -Engineered metal buildings: a. Production. Building 290,640 PE MB with roof and wall insulation. b. Business Office Building - 14,400 SF PEMB with roof and wall insulation. IT obile/ C arta l 1bu ildinfor 1,000 SFshipping office. 18. Cranes at production building include: 3 -ton for maintenance, 55 -ton for coil storage, 1/2 --ton jib at coil storage, I -ton at curing, I .-ton at lining and I 0 -ton, at. lining. 19. Plumbing systems - a. Production Building — Water, sewer and vent piping for officer estroorn fixtures and production restrooms fixtures, floor drains., natural gas lines, compressed air lines and steam, lines. b. Business Office - Water, sewer and ven t. for fixtures at restrop nis, locker room and breakroom. c. Shipping Office — Water, sewer and vent for fixtures at restiroom. 20. New fire sprinkler protection system at production coating area and poly storage building only. 2 LMechanical systerns: a. Production Building - Heat and AC to production of breakroo.nv restroorns, infrared tube heatand dehumidification at coating area, heat and AC to coating mixing room with roof top exhaust and unit heaters at 194,37f.' 8W)Aq 1 1 EAJIl ( I ,x1,1J1 I WWVV hM11,28Y poly storage building, production areas -to receive rooftop, exhaust fans to perforni 6 air changes per hour. b. Business Office -- Heat and AC or whole building with restroorn and .locker exhaust fans. c. Shipping Office — Heat and AC for whole building with restroom exhaust, 22. Fire Alarm Systems to include strobe, horns and wiring at production. building, office building. Includes an independent aspiration system at production coating area. 23. Electrical Systems: a. Site -- Provide conduit distribution to each building location from service 'provider transfonner, site lighting for laydown, parking lots and roadways. b. Production Building .— Provide electrical distribution -for power and. lighting, conduits raceways, light fixtures, gear and panels, transformers, MSA gear, MCC gear, disconnects, connection to equipment, overhead doors, cranes, installation of grounding system, perform -volt testing and terminations. c. Business Office — Provide electrical distribution for power and lighting, conduits raceways, light fixtures, gear and panels, data drops at of to above ceiling. d. Shipping Office -- Provide electrical distribution for power and lighting, conduits raceways, light fixtures, gear and panels, data drops at office to above ceiling. 1 1 b,S i I I foo I I / I I wv, _?w,'8 Srl� 7wo i/ L,,���,, ����i p�„ ��� Illi' �je �r� II �� ;� i i �Jt�� 19 � �� �� �l���ll �� r ����� � ��) ���i � fl���lf���'; f f sir � � �f RESOLUTION N0. 2018-004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS AUTHORIZING THE CITY TO BE ELIGIBLE TO PARTICIPATE IN PROPERTY TAX ABATEMENTS AND APPROVING GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENTS IN THE CITY OF PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Section 312.002 of the Texas Tax Code requires local taxing units to state every two years their intent to participate in property tax abatement agreements and to adopt guidelines and criteria for granting tax abatements; and WHEREAS, the City Council of the City of Paris, Texas hereby reaffirms its intent to be eligible to participate in property tax abatements in accordance with Chapter 312 of the Texas Tax Code and to adopt the Guidelines and Criteria for Tax Abatement attached hereto and incorporated herein as Exhibit A; and WHEREAS, a three-quarters majority vote of the City Council of the City of Paris, Texas is required to amend the Guidelines and Criteria for Tax Abatement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City hereby elects to be eligible to participate in a property tax abatement program and approves and adopts the amended Guidelines and Criteria for Tax Abatement attached hereto and incorporated herein as Exhibit A. Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 22nd day of January, 2018. 4 If CITY , •'2 '0 Stever�'J. fford, M....,ayor ATTEST: 'o; `X g! A a rice Ellis, City C erk "'�'�`• �;�= f Jp ..: A R I S „4r,t, APPROVED AT TO FORM: r .._ Step4Wn ieH. Harris, City Attorney (Updated 01-08-18) POLICY STATEMENT CRITERIA AND GUIDELINES FOR T4.14BATEIZE-11-1 1. General Purpose and Objectives. The City of Paris (City) and Lamar County Government (County) (collectively, herein called t "Taxing Jurisdictions") are committed to enhancing the competitiveness and expansion poteenti of local industry; to attracting and encouraging new manufacturing industry and investment; improving the City of Paris, Lamar County and its infrastructure, which attracts and suppo t development and, to expanding the tax base, empioyment opportunities, and the overall qualit i of life for its citizens. Tberefore, the governing bodies of the Taxing Jurisdictions will gi 'I consideration, on a case-by-case basis, to providing tax abatements to the 1en of real aino personal property for projects that stimulate economic growth and diversification in geographic areas served by the Taxing Jurisdictions, according to state law and consistent wi these policies, criteria and guidelines. elix-tiaxis, edW-UT-AM, the tax abatement application. However, the City of Paris and Lamar County are under no obligation to provide tax abatements to any applicant - The Paris City Council acts as the lead entity for projects located in the City limits. The Lamar County Board of Commissioners acts as the lead entity for projects in Lamar County, which are located outside of the City limits. All governing bodies of the Taxing Jurisdictions have adopted like policies, criteria and guidelines and will consider tax abatement requests that qualify thereunder. 11. Definitions. Definitions are 12rovided as an A gpendix A. Ill. DesignatioR of a Reinvestment Zone. For any facility located within the area served by the Taxing Jurisdictions to be eligible for tax abatement it must med the criteria for designation as a tax abatement reinvestment zone as sei forth in the Property Redevelopment and Tax Abatement Act, Texas Tax Code Chapter 312. Th, -i procedural requirements set forth in the Property Redevelopment & Tax Abatement Act, as amended (Texas Tax Code See. 312.401 (b)). Pursuant to Texas Tax Code See. 312.2011, designation of an area as an enterprise zone under Chapter 2303 of the Texas Government Code constitutes designation of the area as a reinvestment zone without further hearing or procedural requirements other than those provided under said Chapter 2303. IV, Tax Abatement Autborized. The Taxing Jurisdictions, through their elected goveming bodies, may agree in writing with th-� INS a -W, W4. -ikW%W sitsmgi P11;1 11no "vol ("$I =ojil is LM (Updated 01-08-18) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT taxation a portion of the value of the real property, or of personal property located on the real property, or both, The period of the abatement granted under the agreement shall not exceed th(,- term authorized by law. Sucb agreement will be based on the condition that the owner or lessee of the property makes specific improvements or repairs to, the property. An agreement the extent its value for that year exceeds the base year value. An agreement may provide for the exemption of personal property located on the real property in each year covered by the agreement other than personal property that was located on the real property at any time before the period rovered by the agreement, Inventory or supplies cannot be abated as personal property - Tax abatements may only be granted tbr additional value of eligible property improvements made subsNuent to and specified in an abatement agreement between the Taxing Jurisdictions and the property owner or lessee sub ect to such limitation as the Taxing Jurisdictions may require. The additional value 6411rar 7miX-wPUJqW, owner already on the tax roll within the area served by the Taxing Jurisdictions. Change in appraised value does not qualify for abatement except in an instance where a previously vacant authorized facility is utilized. Value added to the tax rolls must come from actual capital expenditures. The negotiation of tax abatement agreements will be conducted by the Paris Economic Development Corporation's ("PEDC") executive director, in close consultation with the city manager. In determining where and how tax abatements will be utilized, the executive director will examine the potential return on the public's investment. Return on public investment will be measured in terms of (i) jobs created, (ii) jobs retained in cases of existing employers within the Taxing Jurisdictions, and (iii) broadening of the tax base and expansion of the economic base (e.g. capital investment, payroll, local spending, etc.). V. Eligibility Criteria for Tax Abatement for Real and Personal Property A property owner and/or lessee shall be eligible for tax abatement only upon the following criteria. H�orlzed "terls f" is 1. An authorized facility is used for manufuturing, research, regional distribution, mgional services, regional Facility J tourist entertainment, other basic industry, or any primary jobs creating industry. (See Appendix A for definitions.) 2. A new authorized facility must be created, or an existing authorized facility must be improved, modernized or expanded. 3. If a kased authorized facility is granted abatement, the agreement may be executed with the lessor and/or lessee, depending upon the particular circumstances of die proposed project. If the agreement is with the lessor, lessor shall demonstrate binding contracts vAth the lessee to guarantee cornpliance with the terms of gible I , The property involved must be a newly created, or improvements to an existing, authori2ed facility. Property 2. Eligible property for which abatement may be granted includes nonresidential rml property and/or tangible personal property not located on the real property at any time before the abatement agreement becomes I effective. 3, Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible penonal property, and ftt office space and related fixed improvements necessary to the operationand administration ofthe authorized facility, - - - - ------------- .. . ........ (Updated 01-08-18) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT El $25,000,001 and Above El (Updated 01-08-18) POLICY STATEMENT 'CRITERIA AND GUIDELINES FOR TAX ABATEMENT An additional 20% abatement for newjob creation is available based on the following requirements: a. A project that creates a minimum of 10 new jobs. b. The new job wages = equal toor greater than the current County average wage for all private sector jobs excluding retail trade and accommodation and food services ($41,M annually for 2013. Source: Texas Workforce Commission via ",ww.traccr2.cnm. ( te: This represents 547 companies, 10,470jobs and 56% qf allprivate sector employment in . -.6 ........ .. ..... Wo Lamar County.) c. The taxing jufisdictions and the company must agree to include measuring, tracking and annual reporting of the not job increases (existing jobs plus new jobs) for the entire term of the abatement agreement. For Net New Jobs (New Job Creation and Retention ting Jobs) . . . . .......... . ..... PTIVIM &MM V1. Tax Abatement for Existing Empl1"% 1 or Personal Property. The Taxing Jurisdictions recognize the value of its existing employers to the well-being of the City and County. The Taxing Jurisdictions desire to encourage existing employers to remain in the Taxing Jurisdictions and to improve their respective businesses and industries, as well as their profitability. 111uring into the Taxing Jurisdictions), owns or leases an authorized facility and has plans to improve such Troperty by constructing new improvements on its real property and/or adding new personal property to its authorized facility which qualif� for tax abatement under these Policies, Criteria and Guidelines, such employer may be eligible for tax abatement with respect to such improvernents to its real property or its new personal property -under the provisions of Article V above, even if no new jobs or newly created minimum annual payroll are created. MI its 4 4 1 FIJWTIMMMG� ItIO Vl� J )IiI (All (4) 0 1 VWZA 11iM (Updated 01-08-18) POLICY STATEMENT %'--'RITERIA.AND GUIDELINES FOR TAX ABATEMENT zmpmr�*�� The local taxing jurisdictions encourage existing employers to retain as many jobs and as much existing annual payroll as is economically feasible for the existing employer, while remaining competitive in its industry. V11. Greenfield projects In order to encourage the development of greenfield properties and also to be able to expedite W4 0111,14110 ectsI i 61It It'lideglit I'll I WE W1161 11"i Iii, 141,40 -tu, 111RATIC15A I 116VA10 IN b-111 I , t -'J_- ,Process .. ..... — — ---------------- - - - - . ..... . ...... ..... . . . . . . ......... ------------ (Updated 01-08-18) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT designation of a reinvestment zone and execution of a tax abatement agreement. 2. The lead Taxing Jurisdiction (typically the City of Paris) may adopt an ordinance designating a tax abatement reinvestment zone only after notice of a public hearing has been published at, least seven (7) days before the date of the hearing, and all other procedural requirements of . . . ..... of the Tex" Tax Codehave been satisfied. . . ........ ...... - -------- Findings In order to enter into an agreement. the Taxing Jurisdictions must find that: I . The terms of the proposed agreement comply with these Policies, Criteria and Guidelines. 2. There will be no substantial adverse efrect on the provision of Taxing Jurisdictions' services or is base. 3. That the plaruied use of the property will not constitute a hazard to public safety, healtb or morals. 4. Incident to approval of any ordinance designating a reinvestment zone, the Taxing Jurisdictions shall find that the improvements sought are feasible and practical and would be a benefit to the land to be included in the reinvestment zone and to the Taxing Jurisdictions after the expiration of thm�eeT.. Varianues Requests for variance from the provisions of these PoEciies, Ciniteria and Guidelums may be made in writing to the Taxing Jurisdictions; provided, however, that in no event shall the term of any abatement exceed the period authorized by applicable state law. Such request shall include a complete description of the circumstances requiring a variance. Approval of a request for variance sW] require the affirmative vote of dutm-fourths (314) of the members of each of ffie Taxing .. . . ...... Proposed The adoption of these Policies, Criteria and Guidelines by the Taxing Jurksdirtions does not limit Agreements the discretion of the Taxing Jurisdictions' governing bodies to decide whether to enter into a Decided on specific tax abatement agreement. Nor does it limit their discretion to delegate to their employees, Individual the authority to determine wbelher or not the Taxing Jurisdiction should consider a particular Basis applicatim or request for tax abatement, or create any property, contraot, or other legal right in any pemn or entity to have the Taxing Jurisdiction consider or grant a speced application or request for tax abatekment. --- — --------- Vill. Abatement Agreement Terms and Conditions. Appendix 13 provides many of the terms and conditions to be included in any forinal tax abatement legal agreement. IX. Amendments to Policies, Criteria and Guidelines These Policies, Criteria and Guidelines are effective for a two (2) year period from the date of their adoption, unless amended earlier by the affirmative vote of three-fourtbs (3/4) of the members of each governing body (City, County). YOr 8 taX RDIVe-went KpjTj1Wj-nU"f7e--t Paris Economic Development Corporation 1125 Bonham Street Paris, Texas 75460 Pbone: 903-784-6964 903-784-2503 A,batemenl or Tax fUll W tlll CUM, 60r, frorn� ad valoreeh, of ceitlin is and WrjMe peiN»nal VA (Updated 01-08-18) POLICY STATEMENT CRITERIA AND • FOR TAX ABATEMENT q ji 1411sog] no PUMIRM411mi 11 TINWITO Lai, seementan upgra ngo exising W c increa pro Uc ve 11113 or output, updates the technology, or substantially lowers flie unit cost of Wration. Modemization may result from the conshuction, alteration or installation of buildings, structures, fixed n-mchinery or equipment, but shall not be for the purpose of reconditioning, refiiTbishiqS, or deferred rwintenance. X 1X+ 1111$14 V� 10 1*11�il I W1 an Enterpnst: ZAI and fixtures constructed or otherwise situated thercon. ...... .... The Tax Abatement Advisory Committee will be convened from time to time by the Paris WoNW-1 W4 (NOW, uommMe—egz- =iff-� entities mferemed above. (4pdated 01-1B-18) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT Abatement Agreement Terms and Coxd1fions After approval, the Taxing Jurisdictions shall formally pass an order or resolution and authorize the ex�;mtfio if include, but not be limited to the following terms and conditiops: WITIWIT-7-MIF7 of Proprietary Infortnation The following project specifies will be included: 1. The base year value. 2. Percent of increased value to be abated each year. 3. The commencement date and the termination date of abatement - 4. Amount of investment and average number of jobs involved during the term of the agreement. 5, The proposed use of the authorized facty, nature of constmetion, time schedule, plat, property description, and improvement list, as provided in the application. 6. A listing of the kind, number, location, and costs of all proposed improvements of the propaw, 7. A statement limiting the uses of the property consistent with the general purpose of encouraging development or redevelopment of the reinvestment zone during the period that property tax abatement is in effect. 8. That aems to the project is provided to allow for the inspection by Taxing Jurisdictions' inspectors mid officials in order to ensure that the improvements or repoks are made according to the specifications and conditions of the agreement. 9, That property tax revenue lost as a result of the tax abatement agreement will be recaptured by the Taxing Jurisdictions if the owner of the property fails to make the improvements or repairs as provided by the agreement 10, Each term agreed to by the owner of the property. 11, A requirement that the owner of the property shall certify annually to the Taxing Jurisdictions that `ois in compliance with each applicable term of the agreement. 12. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, administration and assignment, or other provisions that may be required by state law, or in the discretion of the Taxing Jurisdictions' governing body, 13. That the Taxing Jurisdictions may cancel or modify the agreement if the property owner fails t1pqpg!1 with the agrp�qS!. . . . ........ and properly follow the legal procedures for their protest and/or contest or violates any of the lwrlwiiAlwor-64AWR I ite &.1rAw t - i"40 o e R4 9�T W* dI gow- 14, 1161,4(666" IN;; 111'rM11,071 OF WTAArX ICU 'MUMML I.Macip-C.111M., LUAL Inc MA.T pil-to; jut 4 IOr.%-Vj-La for recapture of all or part of the taxes abated- At any time before the expiration, any tax abatement agreement may be terminated by mutual consent of all parties involved in die same "manner that the aaS_ nt was exrcuteA .................. ...... . ...... is providW to a Taxing Jur� Y:. i n c o rinection with an application or request for tax abatement under these Policies, Criteria and Guidelines, and that describes the specific hlvrM mvO)n 1 Foria 11 itas. igloo 1[yW101 411,11is g 1161 unin Tac ZJ; &Mnuuf Is i�A;:YzF N aym Asar nent is executed is not confidential hereunder. . . ....... . . -in a ment shall sti�,,� te that" ern and/ or AO�rFr- Tax' 0 C�• Contract Review, Mar, (Updated 01-D8-18) POLICY STATEMENT CRITERIA AND GUIDELINES FORTAXABATEIVBVT twRIANDURL1177711 MIT' I N—V= facility receiving abatement to ensure compliance with the agreement and report possible violations of th jax�hg!_o Loq bodies. ...... . . ........... . . F UIC dMWAIAM-IJ7-111 a jhprpi�:bqq�41kej pei ttp#.Py,§tate law, .. . . . ...... 4 HFUrM, "Wa U, Oki END W""44444 TVA jj�! j- 1"66E66-ic—b --Taxing JurMiction shall be responsible for a! review, and monitor"nig of tax abatement agreements authorized by them Taxing Jurisdictions under these Policies, Criteria and Guidelines. These. responsibilities shall include an=lly verifying participants in I. x abatement agreements are in full compliance with the terms of the agreement, including completion and submission of all required documents in a timely manner. 2. The P" City Attorney shall expeditiously advise the Taxing Jurisdictions in writing of any instance& of contract non-compliance by tax abatement participants. In addition, the Paris City Attorney shall, on an annual basis, conduct a performance review of the activities of each tax abatement participant and report the findings of such review to the leadership and governing bodies of each taxing enfity. 3. The Taxing Jurisdictions' governing bodies shall retain the right to independently review and audit the activities of tax abatement participants, and shall be responsible for enforcement of the terms of any taxabatement agreement autborized hereunder. 4. Annually the Paris City Attorney shall report to each of the governing bodies on its monitod and liance activities and the status of al 3] I'llswil"I"MaIll % j Annual Certificate of Compliance for Tax Abatement Agreement ("the Agreement") Between the City of Paris, Texas And American SpiralWeld Pipe Company, LLC Dated September----, 2018 THE STATE OF TEXAS COUNTY OF LAMAR INITIAL WHERE APPROPRIATE: American SpiralWeld Pipe Company, LLC (the "Company") hereby certifies that for the year I; (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) The Company has continuously operated the Property and Improvements described in the Agreement as a spiral weld pipe manufacturing plant. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for each quarter of (6) All other terms and conditions of this Agreement have been complied with. American SpiralWeld Pipe Company, LLC hereby certifies that the company is not in compliance with its agreement with City of Paris for the year Please Circle the number of the item(s) above in which you believe that the Company has failed to comply and state in what way compliance with the term or terms were not met. Attach additional pages if necessary. Annual Certificate of Compliance Page 2 VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared ._... _..........._.......__ the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is . I am capable of making this verification. I have read the foregoing Annual Certificate of Compliance, and I further certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of ww_, 20_, Notary Public, State of Texas , e \� . , » ƒ \� \ � / � /� . \ , \ \ < : \ � \ \ \ \./ \ \ \� »2 CERTIFICATE OF COMPLETION FOR THE YEAR 2019 AMERICAN SPIRALWELD PIPE COMPANY, LLC STATE OF TEXAS } COUNTY OF LAMAR } CITY OF PARIS } The City of Paris, Texas has executed and delivered a Tax Abatement Agreement (the "Agreement") dated September 2018, with AMERICAN SPIRALWELD PIPE COMPANY, LLC, for certain improvements and other equipment (the "Improvements") to be installed at the Company's property located in Paris, Lamar County, Texas, as described in Exhibit A attached hereto, which property is located within an Enterprise Zone established by the United States Census in 2010. Based on information provided by Company and verified by the City, the City of Paris herein verifies that the Improvements agreed to be built, installed and used in accordance with said Agreement have in fact been completed as provided for in the Agreement and that the Company has complied with all other terms of the Agreement. NOW, THEREFORE, the City of Paris authorizes that the property described in Exhibit A attached hereto shall receive a tax abatement during each year through the end of the term the Tax Abatement Agreement of the taxes assessed upon the increased value of the real and personal property of the Company located in Paris, Texas, over the value at which the property was last appraised on January 1, 2018, which is the year in which the Tax Abatement Agreement was executed, as recited in the Agreement. The term of the tax abatement is seven (7) years, with the tax abatement beginning January 1, 2020, and ending December 31, 2026. Said tax abatement shall be equal to the following: Year 1 (beginning January 1, 2020) 100% Year 2 (beginning January 1, 2021) 100% Year 3 (beginning January 1, 2022) 70% Year 4 (beginning January 1, 2023) 70% Year 5 (beginning January 1, 2024) 50% Year 6 (beginning January 1, 2025) 25% Year 7 (beginning January 1, 2026) 25% APPROVED this day of Mayor 32354874 v2 ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney 32354874 v2 CERTIFICATE OF COMPLETION FOR THE YEAR 2020 AMERICAN SPIRALWELD PIPE COMPANY, LLC STATE OF TEXAS COUNTY OF LAMAR CITY OF PARIS } } 0 The City of Paris, Texas has executed and delivered a Tax Abatement Agreement (the "Agreement") dated September . 2018, with AMERICAN SPIRALWELD PIPE COMPANY, LLC, for certain improvements and other equipment (the "Improvements") to be installed at the Company's property located in Paris, Lamar County, Texas, as described in Exhibit A attached hereto, which property is located within an Enterprise Zone established by the United States Census in 2010. Based on information provided by Company and verified by the City, the City of Paris herein verifies that the Improvements agreed to be built, installed and used in accordance with said Agreement have in fact been completed as provided for in the Agreement and that the Company has complied with all other terms of the Agreement. NOW, THEREFORE, the City of Paris authorizes that the property described in Exhibit A attached hereto shall receive a tax abatement during each year through the end of the term the Tax Abatement Agreement of the taxes assessed upon the increased value of the real and personal property of the Company located in Paris, Texas, over the value at which the property was last appraised on January 1, 2018, which is the year in which the Tax Abatement Agreement was executed, as recited in the Agreement. The tax abatement shall continue for a duration of six years (6) years, ending December 31, 2026. Said tax abatement shall be equal to the following: Year- 1 (beginning january 1, 2020) Year 2 (beginning January 1, 2021) Year 3 (beginning January 1, 2022) Year 4 (beginning January 1, 2023) Year 5 (beginning January 1, 2024) Year 6 (beginning January 1, 2025) Year 7 (beginning January 1, 2026) APPROVED this 32354876 v2 dayof.........................................w..._�s Mayor 100% (NOT APPLICABLE) 100% 70% 70% 50% 25% 25% ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney CERTIFICATE OF COMPLETION FOR THE YEAR 2021 AMERICAN SPIRALWELD PIPE COMPANY, LLC STATE OF TEXAS } COUNTY OF LAMAR } CITY OF PARIS } The City of Paris, Texas has executed and delivered a Tax Abatement Agreement (the "Agreement") dated September . 2018, with AMERICAN SPIRALWELD PIPE COMPANY, LLC, for certain improvements and other equipment (the "Improvements") to be installed at the Company's property located in Paris, Lamar County, Texas, as described in Exhibit A attached hereto, which property is located within an Enterprise Zone established by the United States Census in 2010. Based on information provided by Company and verified by the City, the City of Paris herein verifies that the Improvements agreed to be built, installed and used in accordance with said Agreement have in fact been completed as provided for in the Agreement and that the Company has complied with all other terms of the Agreement. NOW, THEREFORE, the City of Paris authorizes that the property described in Exhibit A attached hereto shall receive a tax abatement during each year through the end of the term the Tax Abatement Agreement of the taxes assessed upon the increased value of the real and personal property of the Company located in Paris, Texas, over the value at which the property was last appraised on January 1, 2018, which is the year in which the Tax Abatement Agreement was executed, as recited in the Agreement. The tax abatement will continue for a duration of five years (5) years, with the tax abatement ending December 31, 2026. Said tax abatement shall be equal to the following: Year- 1 (beginning Jan1, 2020) 100% (NOT APPLICABLE) Tear -(begs , 2021)100% (NOT APPLICABLE) Year 3 (beginning January 1, 2022) 70% Year 4 (beginning January 1, 2023) 70% Year 5 (beginning January 1, 2024) 50% Year 6 (beginning January 1, 2025) 25% Year 7 (beginning January 1, 2026) 25% APPROVED this day of..................................................��mm... Mayor 32354883 v2 ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney 32354893 v2 Ic WETLAND DETERMINATION AND CLASSIFICATION SITE LOCATION MAP Project #: 10758N-WD BERG• iSION OLIVER ASSOCIATES INC. For: Pads Economic Devel r:rati ent Cor on ' Location: a Industrial Park ENVIRONMENTAL SCIENCE 6 LAND USE CONSULTANTS 7707 s7. MARvs LANE, SUITE 400 Lamar County. Texas HOUSTON, TEXAS 77079 PHONE (281)589-0898 hNpJiWww.bergo8vei.com EXHIBIT E [Reserved] I 11 Semiannual Certificate of Compliance for Economic Development Master Agreement ("the Master Agreement") Between the City of Paris, Texas, Paris Economic Development Corporation And American SpiralWeld Pipe Company, LLC Dated September____, 2018 THE STATE OF TEXAS COUNTY OF LAMAR INITIAL WHERE APPROPRIATE: American SpiralWeld Pipe Company, LLC (the "American") is providing herewith the following documents and information for the six (6) month period ending Payroll for the Paris Facility, including the last four (4) digits of each employee's social security number. 2. Employer's Quarterly Reports as filed with the Texas Workforce Commission. Documentation showing the hours worked per week in the preceding six (6) month period for each employee. The remainder of this a e is intentionalIv left blank. Semiannual Certificate of Compliance—Master Agreement Page 2 VERIFICATION STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned notary, on this day personally appeared the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is . I am capable of making this verification. I have read the foregoing Annual Certificate of Compliance, and I certify that the Employer Reference Summary pages are true and correct copies of those reports filed with the Texas Workforce Commission. I further certify that copies of the documents referenced as Items 1 and 3 hereinabove are true and correct copies of same and that the information contained therein is true and correct." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of 20_. Notary Public, State of Texas r Fi Annual Certificate of Compliance for Economic Development Master Agreement ("the Master Agreement") Between the City of Paris, Texas, Paris Economic Development Corporation And American SpiralWeld Pipe Company, LLC Dated September____, 2018 THE STATE OF TEXAS COUNTY OF LAMAR Before me, the undersigned authority, on this day personally appeared www...... __._,_IT_._,__,., authorized representative for American SpiralWeld Pipe Company, LLC, who by me duly sworn, upon oath says as follows: "My name is _ and I am ...... _.......... [Title] for American SpiralWeld Pipe Company, LLC ("American"). I am over the age of 18 years and have personal knowledge of the matters set forth herein. Being duly sworn, I hereby certify that American is in compliance with each and every term and condition set forth in that Master Economic Development Agreement by and among the City of Paris ("City"), the Paris Economic Development Corporation ("PEDC"), and American, including the Performance Agreement and the 380 Agreement set forth therein. "Further Affiant says not." Signature of Company Representative Position/Title Sworn to and subscribed before me this the _ day of .............. 20_. Notary Public, State of Texas 19►y:Tf:� ii Metes and Bounds Description 9.18 Acres City of Paris Lamar County, Texas June 2018 Being 9.18 acres of land situated within the corporate limits of the City of Paris, being a part of the John Herrington Survey, Abstract Number 436, and being the reminder of a called 107 acre tract of land conveyed from Lamar Building and Loan Association of Paris to The City ofParis on January 25, 1935 by Deed recorded in volume 238, page 594 of the Deed Records of Lamar County, Texas. The said 9.18 sore tract fully described by metes and bounds as fbllows: Beginning at a % inch iron rod found. at the most southern southeast corner of the aforementioned called 107 acre City of Paris tract, said rod also being the northeast corner of a called 14.41 acre tract of land conveyed from Marsha R. Russell to Paris Economic Development Corporation on April 28, 2008 by General Warranty Deed recorded in Lamar County Clerk'', Document Number 058950-2008, and said rod being the northwest corner of a called 23,06 acre tract of land conveyed from Ben Faber et at to Paris Economic Development Corporation on April 21, 2008 by Warranty Deed recorded in Lamar County Clerk's Document Number 058803-2008 and said rod also being the southwest corner of a called 5.475 acre tract of land conveyed from Faith Tabernacle Church to Family Worship Center of Paris on. August 20, 1992 by Warranty Deed recorded n volume 305, page 165 of the Real Property Records of l;. Mar County Texas; Thence S 88016'30" W, along the north line of the aforementioned called 14.41 acre Paris Economic Development tact and the most soutivem south line of the aforementioned called 107 acre City of Paris tract a distance of 653.63 feet to a % inch iron rod found at the most southern southwest corner of said called 107 acre City ofParis tract and at the northwest coiner of said called 14.41 acre Paris Economic Development Corporation tract, and said rod also being in the most southern east boundary lino of a called 151.089 acre tract of land conveyed from The Paris Texas Industrial Foundation Inc. to Parts Economic Development Corporation on November 18, 2003 by Gift Deed recorded in volume 1403, page 53 of the Real Property Records of Lamar County, Texas; Thence N 02°17'26" W, along the most southern east boundary line ofthe aforementioned called 151.089 acre Paris Economic Development Corporation tract and the most southern west boundary line of the aforementioned called 107 acre City of Paris tract, a distance of 599.79 feet to a % inch iron rod found at an inner corner of said called 151.089 acre Paris Economic Development Corporation tract, and said rod also being the southwest corner of a tract of land conveyed to Paris Economia Development Corporation from Power Innovation Group, Inc on October 12, 2016 by Warranty Deed recorded. in Lamar County Clerks Dobument Number 137424-2016 (no Exhibit A attached, and was originally a part of said called 151.089 acre tract); Thence N 86116'10" E, along the south boundary litre of the aforementioned called 151.089 acre Paris Economic Development Corporation tract and along the south boundary line of the aforementioned Paris Economic Development Corporation tract recorded in Lamar County Clerk's Document Number 137424-2016, at a distance of 605.34 feet passing the southeast corner- of said Paris Economic Development Corporation tract recorded in Lamar County Clerk's Document Number 1374242016 and continuing on for a total distance of 655.51 feet to a % inch iron rod found in concrete in the most southern east boundary line of the. aforementioned called 107 acre City of Paris tract at the most eastem southeast corner of said called 151.089 acre Paris Economic Development Corporation tract, said rod also being the southwest comer of a tract of land conveyed from Dean E. Wissinger to Toby Rex Adams on February 09, 2017 by General Warranty Deed recorded in Lamar County Clerk's Document Number 140606-2017 and also the northwest corner of a tract of land conveyed from Ronald E. Martin and wife Kathleen K. Martin to Lamar County Human Resources Council, Inc on July 16, 1999 by Warranty Deed recorded in volume 897, page 67 of the Real Property Records of Lamar County, Texas; W Page 1 of 3 WIA, ENSIM Thence S 02°08'03" E, along the most southern east boundary line of the aforementioned called 107 acre City of Paris tract and the west boundary line of the aforementioned Lamar County Human Resources Council tract, passing the southwest corner of said Lamar County Human Resources Council tract and the northwest comer of a tract of land conveyed from Rachel J. Faber to Paris Bible Church on June 21, 1983 by Warranty Deed recorded in volume 658, page 770 of the Deed Records of Lamar County, Texas, continuing on passing the southwest corner of said Paris Bible Church tract and the northwest corner of another called 4.02 acre tract of land conveyed to Paris Bible Church from Rachel L Faber on February 06, 1984 by Warranty Deed recorded in volume 667 page 568 of the Deed Records of Lamar County, Texas, continuing on passing the southwest comer of said called 4.02 acre Paris Bible Church tract and the northwest corner of the aforementioned Family Worship Center tract, and continuing on for a total distance of 622.72 feet to the place of beginning and containing 9.18 acres of land. NOTES i. The Reference Bearing for the tract of land described hereon is NAD 1983 Texas State Plane Coordinate System Zone 4202. 2. A one page 8.5"x11" sized plat that shows the tract of land described herein accompanies this metes and bounds description and is considered to be a part of this document. 3. A 1.212 acre survey for an access easement to this tract from Park Street was prepared this same day. I, KEVIN K. WHITLEY, REGISTERED PROFESSIONAL LAND SURVEYOR, #5892, STATE OF TEXAS, DO HEREBY CERTIFY THAT THE ABOVE DESCRIPTION IS TAKEN FROM MEASUREMENTS MADE UPON THE GROUND AND WAS COMPLETED ON JUNE 07, 2018. KEVIN K. WHITLE , PLS DATE Page 2 of 3 JOHN HERRINGTON SURVEY A-436 I SCAL8:1 •'=200' BARSCALE PARIS ECONOMIC DFVELOPX4EN T CORPORATION OR VOLUME 1403, PAGE 53 CALLED 151.089 ACRES NQu3 1. TIM RE MIME iCEi aBARING FOR THE TRACTOPLAND SHOW EEREONISNAD 1983 TI MM STA72 PLANE COORDINATE SYSTRMX=4202. 2. A TWO PAM METES AND BOUNDS DESCRIPTION ACCOMPANIES THIS PIAT AND 13 CONSIMERED TO BE A PART OF THIS DOCUMENT. 3. THIS ORIQJNALPLAT IS ON AN 85°X 11" SI ED SHEET. 4. NO MaSTING IME'ROVE d5NTS, EASEMENTS NORUT11.1TIES ARE SHOWN 1 dRSON MURK CUNN04GHAIV CC# 07SS98-2010 CALLED 5.739 ACRES PARi3 ECONOiW DEVELOPMENT CORPORATION OR VOLUME 1403, PAGE 53 CALLED I51 089 ACRES I PARIS RCONOM[C I DEVTLOPMIINT CORPORATION CC# 137424-2016 ENODEscRmTiONlEiLHIBTTA) I ORICENALLY A PARTOP OR VOLUME 1408, PADS 53 I CALLED 151.089 ACRES AT 605.24'PASS. - [CHAIM { N$6°1610"E 655.51' CONCRETE IRP EOMI CD It H ij CITY OF PARIS ' OR VOLUME 23% PAGE 594 REMAINDER OF CALLED 107 ACMES IRP 334" IRF A) E� S 8801030" W 653.63' PARIS ECONOMIC DEVELOPMENT CORPORATION CCW 059950-2008 CALLED LED 14AI ACRES LEGEND ' d CMF CAPPED MONROD FOUND e ERF IRON ROD FOUND (CA) Cx1NTROLIUNGMONUMENT rAX M DIFORMATION FOUND ON BOUNDARY MONUMENT CCA COUNTY CEIRKS DOCIJAMWNUMBRR OR OFFICIAL PROPERTY RECORDS RP REALPROPERTY RECORDS DR DIMD RECORDS . POB POINT OF BEGINNING — — — — EXISTINO PROPERTYLINE 0 N e tri n v N I I i I v- - I TOBYFMADAMS CCff 140606-2017 I I LAMAR COUNTY HUMANRESOURCBS RP VOLUMES 897, PAGE 67 PARIS 10MLIE CHURCH DR VOLUMES 658, PACE 770 PARIS BIBLE CHURCH DR VOLUME 667, PAGE US CALLED 4.02 ACRES FAMILY WORSHIP CJEIqm RP VOLUME 305, PAqm 165 CALLED SA75 ACRES PARIS ECONOMIC DEVELOPMENT' CORPORATION C C# 0-8032008 I CALLED 23.06 ACRES I I, KEVIN K. WiMMJZY, REGISTERED FROPB.4SIORAL LANA SURVEYOR FOR TIM STATE OF TEXAS, RPLS #5992, DO HEREBY CERTIFY THAT THE PLAT SHOWN HE?REWREPRESRNI'S AN ACTUAL ON TH&OROUND SURVEY CONDUMED BY ME, Co"'T A ..... ifit�WOR.Ww�d91l y" °�s PAGE 3 OF 3 EXHID 9.18 ACRES CITY OF PARIS L�AMAR COUNTY, TEXAS 1HAYM INCU12 RAM JUNE 2018 waw.8ryrerJsl�eedd�Jaunm 7�P$Jd7tMN0.F0003J� rifrommwo. mum 0 N e tri n v N I I i I v- - I TOBYFMADAMS CCff 140606-2017 I I LAMAR COUNTY HUMANRESOURCBS RP VOLUMES 897, PAGE 67 PARIS 10MLIE CHURCH DR VOLUMES 658, PACE 770 PARIS BIBLE CHURCH DR VOLUME 667, PAGE US CALLED 4.02 ACRES FAMILY WORSHIP CJEIqm RP VOLUME 305, PAqm 165 CALLED SA75 ACRES PARIS ECONOMIC DEVELOPMENT' CORPORATION C C# 0-8032008 I CALLED 23.06 ACRES I I, KEVIN K. WiMMJZY, REGISTERED FROPB.4SIORAL LANA SURVEYOR FOR TIM STATE OF TEXAS, RPLS #5992, DO HEREBY CERTIFY THAT THE PLAT SHOWN HE?REWREPRESRNI'S AN ACTUAL ON TH&OROUND SURVEY CONDUMED BY ME, Co"'T A ..... ifit�WOR.Ww�d91l y" °�s PAGE 3 OF 3 EXHID Access Easement Metes and Bounds Description 1.212 Acres City of Paris Lamar County, Texas June 2018 Being 1.212 acres of land situated within the corporate limits of the City of Paris, being a part of the John Herrington Survey, Abstract Number 436, and being a part of a called 151.089 acre tract of land conveyed from The Paris Texas Industrial Foundation Inc. to Paris Economic Development Corporation on November 18, 2003 by Gift Deed recorded in volume 1403, page 53 of the Real Property Records of Lamar County, Texas. The said 1.212 acre tract fully described by metes and bounds as follows: Beginning at a %z inch iron rod found at the most eastern northeast corner of the aforementioned called 151.089 acre Paris Economic Development Corporation tract, said rod also being in the south line of a called 6.646 acre tract of land conveyed from TBEI, L.P. to MFRE Taris, LLC on July 14, 2015 by Special Warranty peed with Vendor's Lien recorded in Lamar County Clerk's Document Number 125679-2015 and said rod also being located at the northwest comer of the right of way of Park Street; Thence S 01 136'34" E, along the west boundary line of the aforementioned called 151.089 acre tract, passing the southwest corner of the right of way of Park street and the northwest corner of a called 5.52 acre tract of land conveyed from Ronnie Bolton and wife Joann Bolton to Potters Industries LLC on December 15, 2015 by Warranty Deed recorded in Lamar County Clerk's Document Number 129725-2015, and continuing on along the common boundary line of said called 151.089 acre tract and said Potters industries tract, passing the southwest corner of said Potters Industries tract and the northwest corner of a called 6.97 acre tract of land conveyed from Rex Adams to Shirley F. Adams McMillan on July 29, 1995 by Special Warranty Deed recorded in volume 543, page 106 of the Real Property Records of Lamar County, Texas and continuing on along the common boundary line of said called 151.089 acre tract and said McMillan tract, passing the southwest corner of said McMillan tract and the northwest corner of a tract of land conveyed from Dean E. Wissinger to Toby Rex Adams on February 09, 2017 by General Warranty Deed recorded in Lamar County Clerk's Document Number 140606-2017, and continuing on along the common boundary line of said called 151.089 acre tract and said Adams tract for a total distance of 1,064.52 feet to a'h inch iron rod found in concrete at the most eastern southeast corner of said called 151.089 acre tract and at the southwest corner of said Adams tract, said rod also being the northeast corner of the remainder of a called 107 acre tract of land conveyed to the City of Paris from Lamar Building and Loan Association of Paris on January 25, 1935 by Deed recorded in volume 238, page 594 of the Deed Records of Lamar County, Texas; Thence 5 86°16' 10" W, along the most eastern south boundary line of the aforementioned called 151.089 acre Paris Economic Development Corporation tract and the current north boundary line of the aforementioned City of Paris tract, a distance of 50.16 feet to a %Z inch capped (Brandon Chaney) iron rod found at the southeast corner of a tract of laud conveyed to Paris Economic Development Corporation from Power Innovation Group, Inc on October 12, 2016 by Warranty Deed recorded in Lamar County Clerks Document Number 137424-2016 (no Exhibit A attached, and was originally a part of said called 151.089 acre tract); Thence N 01032'24" W, along the east boundary line of the aforementioned Paris Economic Development Corporation tract recorded in Lamar County Clerk's Document Number 137424-2016, a distance of 466.56 feet to a'/2 inch iron rod found at the most eastern northeast corner of said Paris Economic Development Corporation tract recorded in Lamar County Clerk's Document Number 137424-2016 and at the southeast corner of a called 5.739 acre tract of land conveyed from Paris Economic Development Corporation to Mark Cunningham on January 12, 2010 by Special Warranty Deed recorded in Lamar County Clerk's Document Number 075598-2010; &jo Pagel of 3 Thence N 01 °34'07" W, along the east boundary line of the aforementioned called 5.739 acre Cunningham tract, at a distance of 499.88 feet passing a Y2 inch iron rod found at the northeast corner of said Cunningham tract and continuing on for a total distance of 599.60 feet to a point in the most eastern north boundary line of the aforementioned called 151.089 acre Paris Economic Development Corporation tract and in the south boundary line of the aforementioned called 6.646 acre MFRE Taris , LLC tract and from said point a % inch iron rod found at an inner corner in the north boundary line of said called 151.089 acre tract and at the southwest corner of said called 6.646 acre tract bears S 88°08'28" W, a distance of 501.09 feet; Thence N 88008'28" E, along the common boundary line of the aforementioned called 151.089 acre Paris Economic Development Corporation tract and the aforementioned called 6.646 acer MFRE Taris, LLC tract; a distance of 49.14 feet to the to the place of beginning and containing 1.212 acres of land. NOTES 1. The Reference Bearing for the tract of land described hereon is NAD 1983 Texas State Plane Coordinate System Zone 4202, 2. A one page 8.5"x14" sized plat that shows the tract of land described herein accompanies this metes and bounds description and is considered to be a part of this document. 3. There is an existing gravel access road within the limits of the tract of land described herein. I, KEVIN K. WHITLEY, REGISTERED PROFESSIONAL LAND SURVEYOR, #5892, STATE OF TEXAS, DO HEREBY CERTIFY THAT THE ABOVE DESCRIPTION IS TAKEN FROM MEASUREMENTS MADE UPON THE GROUND AND WAS COMPLETED ON JUNE 07, 2018. I uVIN K. WHITLE LS Page 2of3 %p An 11,0je, DATE MPRE TARIS, LLC CC9I25679-2015 CALLED 6.646 ACRES � --- Y S SB"08,28" W x501.09' J — (C1) PARIS ECONOMIC DEVELOPMENT CORPORATION OR VOLUME 14D3, PAGE 53 CALLED 15 1.089 ACRES TRK MACHINE ADDITION PR 415-B AT 499.86' — PASSING Y: IRP (cm) JOHN HERRINGTON SURVEY A-436 SCALA 1"-IOIT MARKCUNNINGHAM stt n• 0 IT aar I4T CCR075593.2010 DAR SCALE. CALLED 5.739 ACRES [.H END • CIRF CAPPED 1RON ROD FOUND • IRF 1RON ROD FOUND X POINT FOR EASEMENT CORNER (CM) CONTROLLING MONUMENT [XXXX) INFORMATION FOUND ON BOUNDARY MONUMENT CCH COUNTY CLERICS DOCUMENT NUMBER OR OFFICIAL PROPERTY RECORDS RP REAL PROPERTY RECORDS DR DEEDRECORDS PR PLAT RECORDS POD POINTOPOW04NING — — — — EXISTING PROPERTY LINE NOTES W IRF 1. THE REFERENCE SEARING FOR THE73LACTOF LAND SHOWN HEREON 18 NAD 1983 TEXAS STATE PLANE COORDINATE SYSTEM ZONE 4202. 2. ATWO PACEML•TES AND HOUNDS DESCRIPTION ACCOMPANIES THIS PLAT AND IS CONSIDERED TO BE A PART OF THIS DOCUMENT. 3. THIS ORIGINAL PLAT' LS ON AN 8.5"X 14" SIZED SHEET. 4. THERE 19 AN EXISTING GRAVEL ACCESS ROAD WITHIN THE LIMITS OF THE ACCESS EASEMENT SHOWN HEREON, PARIS ECONOMIC DEVELOPMENT CORPORATION CCH 137424.2016 (NO DESCRIPTIO WEXH®TT A) ORIGINALLY A PARTOP OR VOLUME 140%PAGE 53 I, KEVIN K. WHITLEY, REGISTERED PROFESSIONAL CALLED 151089ACRES LAND SURVEYOR FOR THE STATE OF TEXAS, RP1S AW2, DO HEREBY CERTIFY TIIATTHE PLAT SHOWN HEREIN REPRESENTS AN ACTUAL ON -THF GROUND SURVEY CONDUCTED BY MB, COMPLETED ON JUNE07, 2018. a O� w 0 8o w 2 ED �o o, N 0 .�i a z Pon (CTRF M) PARK STREET POTTERS INDUSTRIES, I.LC CCN12972S2015 CALLED 552 ACRES --- -------- --- lid Hu W 91a'< A S = c SHIRLEY F.ADAMS McMU,LAN A 3 v! RP VOLUME543, PAGE 106 TRACT4 CALLED 6.97 ACRES ps z� O u m d 10 h w N 0 0 z TOBY REX ADAMS CCN 140606.2017 LAMAR COUNTY HUMAN RESOURCES RP VOLUME 897, PACE 67 CITY OF PARIS ACCESS EASEMENT DR VOLUME 238, PAGE 594 1.212 ACRES ri S REMAINDER OF CALLED 107 ACRES CITY OF PARIS LAMAR COUNTY, TEXAS JUNE 2018 PAGE3OF3 .............. PARIS ECONOMIC PARISBCONOMIC DEVELOPMENT CORtPORAMON DEVEL0?hM Tf CORPORA3MN CCS 137424-M6 OR VCL DDE 1403,PAfaE53 C9ZMI51.084ACRES WODESCRIPTII.YAO �zCIRF PORIGOLALOF (00 ORVOLUME 1403, PAGE 53 (CHAnYj IItF CALLED IS IA89 ACRM _ _ — — (�l� — — LEGEND C1RF CAPPED MON ROD FOUND 4t IRP 1RONRODFOUND 3 MF+CNC DLON ROD FouxD 1NCONCRETI:MONUMENT o PCRNFFOAEASE)lMI Nr CORNER (CM) CON ROLIMGMONUNENT PC= INFORMATION FOUND ON BOUlMAKY140NUbAENT CCx COUNTY CLEWSDOCVM@1TN[ OR 4OMCIALPROFERTYRECOKD$ RP REALPROPBRTYREOORDS DR DEED RECORDS r,. P0)3 POINTOFSEGIlem 's -- EXISTDTGPROPBRIYL]NE 8X 7WOROCKDRTVEWAY O JOHN HERRINGTON SURVEY A-436 U a iA N 35 5712rr W 50.00 0 SCALE 1'$-W BAR SCALE CITYOPPARIS DR VOLUME 239,PAGE594 REMAINDER OF CALLED 107 ACRES sof ACCESS EASEMENT 0.4343 -ACRE CITY OF PARIS LAMAR COUNTY, TEXAS AUGUST 2018 S*� N 02°0m,l W 47.17 CFIYOFPARIS DR VOWNE 238. PAGE394 REMAINDER OF CALLED 107 ACRES i TOBYREXADAbIS N wiel0° E i CC# 140606-2017 �d C W PQ s 0 0 0 v1 LA1V6A1t COUNTY H IMAN RESOURCES I RP VOLUME 07, PAGE 67 e fq PARIS BIDE$ CFILIRCS sl' DR VOLUME 658, PAGE 770 ra I i�4 1, lI;Bmx WHPFLEP REGLSCERED PROFESSBmm LAND SUBVEYORFOR TEH STATE OFTEXA.S, RPLS 95892, DO ammY CERTIFY't B ummPLAT MOW E[EREINREPRESENTS ANACIUAL ON=TEE-GROMM SURM COI3DUcrw BY1vIP, ONAUGUST20,2018. 7 7, r, D�Y �' or K Wffi1LEY, , NOTES 1. TIIBREFERB MMARINGFORMMTRACTOFLAM SHOWN HERBiON3 NAD 1983 TEXAS STAGE PLANE COORDINATE SYSTEM ZMa43M 2. AONEPAGEXUESAND B004MDESCRIPTION ACCOMPANIES THIS PIAT. 3. THIS ORIGINAI. PLAT IS ON AN SS M 11": 1 0' SHEEL. PA B l oP Z Metes and Bounds Description 50' Access easement 0.4343 Acre City of Paris Lamar County, Texas June 2018 Being 0.4343 acre of land situated within the corporate limits of the City of Paris, being a part of the John Herrington Survey, Abstract Number 436, and being a part of the remainder of a called 107 acre tract of land conveyed from Lamar Building and Loan Association of Parts to The City of Paris on January 25, 1935 by Deed recorded in volume 238, page 594 of the Deed Records of Lamar County, Texas. The said 0.4343 acre tract fully described by metes and bounds as follows: Beginning at a % inch diameter iron rod in a concrete monument found in the most southern East boundary line of the aforementioned called 107 acre City of Paris tract at the most eastern Southeast comer of a called 151,089 acre tract of land conveyed from The Parrs Texas Industrial Foundation Inc. to Paris Economic Development Corporation on November 18, 2003 by Gift Deed recorded in volume 1403, page 53 of the Real Property Records of Lamar County, Texas, said rod also being the Southwest corner of a tract of land conveyed from Dean B. Wissinger to Toby Rex Adams on February 09, 2017 by General Warranty Deed recorded In Lamar County Clerk's Document Number 140606-2017 and also the Northwest corner of a tract of land conveyed from Ronald E. Martin and wife Kathleen K. Martin to Lamar County Human Resources Council, Inc on July 16, 1999 by Warranty Deed recorded in volume 897, page 67 of the Real Property Records of Lamar County, Texas; Thence South 02°08'03" East, along the most southern East boundary line of the aforementioned called 107 acre City of Paris tract and the West boundary line of the aforementioned Lamar County Human Resources Council tract, a distance of 75.16 feet to a point for easement comer, and from said point a % inch iron rod found at the most southern Southeast corner of the aforementioned called 107 acre City of Paris tract bears South 02°08'03" East, a distance of 547.56 feet; Thence South 54°02'48" West, across the aforementioned called 107 acre City of Paris tract, a distance of 330.50 feet to a point for easement corner,- Thence orner; Thence North 3557' 12" West, across the aforementioned called 107 acre City of Paris tract, a distance of 50.00 feet to a point for easement comer; Thence North 54002148" East, across the aforementioned called 107 acre City of Paris tract, a distance of 303.64 feet to a point for easement corner; Thenoo North 02°08'03" West, across the aforementioned called 107 acre City of Paris tract, a distance of 47.17 feet to a K inch capped (Chaney) iron rod found at the Southeast comer of a tract of land conveyed to Paris Economic Development Corporation from Power Innovation Group, Inc on October 12, 2016 by Warranty Deed recorded in Lamar County Clerks Document Dumber 137424-2016 (no Exhibit A attached, and was originally a part of the aforementioned called 151.089 acre tract) and said rod also being in the South boundary line of said called 151.089 acre tract, Thence North 86°16' 10" East, along the South boundary line of the aforementioned called 151.089 acre Paris Economic Development Corporation tract, a distance of 50.17 feet to the place of beginning and containing 0.4343 acre of land, NOTES 1. The Reference Bearing for the tract of land described hereon is NAD 1983 Texas State Plane Coordinate System Zone 4202. 2. A one page 8.5"x11" sized plat that shows the tract of land described herein accompanies this metes and bounds description and is considered to be a part of this document. 1, KEVIN K. WHITLEY, REGISTERED PROFESSIONAL LAND SURVEYOR, 05892, STATE OF TEXAS, DO HEREBY CERTIFY THAT THE ABOVE DESCRIPTION IS TAKEN FROM MEASUREMENTS MADE UPON THE GROUND AND WAS COMPLETED ON AUGUST 20, 2018.;, N ILI IVINK. WHITLEY, DATE Page 2 of 2 112 WIN 1113"',11 J [Tr 0 le et, lease ip n.under E