2019-024 - Approving an Addendum to Tax Abatement Agreement dated November 25, 2008 with Campbell Soup relating to the Company's Single Serve Beverage Line and Authorizing an Agreement with the Company to Terminate sameRESOLUTION NO. 2019-024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING AN ADDENDUM TO TAX ABATEMENT
AGREEMENT DATED NOVEMBER 25, 2008 WITH CAMPBELL SOUP
SUPPLY COMPANY LLC RELATING TO THE COMPANY'S SINGLE SERVE
BEVERAGE LINE AND AUTHORIZING AN AGREEMENT WITH THE
COMPANY TO TERMINATE SAME; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, heretofore, on November 24, 2008, the City Council of the City of Paris,
Texas approved the Tax Abatement Agreement (the "Agreement") attached hereto to as a
part of Exhibit A and incorporated by reference as if fully set forth herein with Campbell
Soup Supply Company LLC ("Campbell Soup" or "the Company') related to Campbell Soup's
Multi -Serve Beverage Line (also known as the "Fusion Line"); and
WHEREAS, the term of said Agreement expires on December 31, 2019; and
WHEREAS, said Agreement relates to property owned by Campbell Soup within the
City of Paris, which property is located within an Enterprise Zone as set forth in the
Agreement;
WHEREAS, the Texas Tax Code Sec. 312.208 and tax abatement guidelines in effect
in 2013 and on the date of this Resolution allow for the modification and termination of a
tax abatement agreement during the term of said agreement; and
WHEREAS, due to prevailing conditions in the industry, OWNER has closed the
Fusion Line at OWNER's PROPERTY and has diverted resources associated with the Fusion
Line to sauce production within the Paris, Texas facility and has furthermore made an
additional capital investment in said sauce production of over $10,000,000.00; and
WHEREAS, in consequence thereof, the Company has requested that the Agreement
be modified and terminated; and
WHEREAS, the City Council has agreed to said modification and termination of the
Agreement because said modification and termination 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 abatements and all applicable
laws and otherwise serve a public purpose in maintaining a major employer in the City;
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 Tax Abatement Agreement dated November 24, 2008
between the City of Paris, Texas and Campbell Soup Supply Company LLC should be
amended in accordance with the terms and conditions of the proposed Addendum to the
Tax Abatement Agreement attached hereto as Exhibi A, and the same having been
reviewed by the City Council and found to be acceptable and in the best interests of the City
of Paris and its citizens, be, and the same is hereby, in all things approved.
Section 3. That the Tax Abatement Agreement dated November 24, 2008
between the City of Paris, Texas and Campbell Soup Supply Company LLC should be
terminated in accordance with the terms and conditions of the proposed Agreement to
Terminate Tax Abatement Agreement Dated November 24, 2008 Between the City of Paris,
Texas and Campbell Soup Supply Company LLC attached hereto as Exhibit B. and the same
having been reviewed by the City Council and found to be acceptable and in the best
interests of the City of Paris and its citizens, be, and the same is hereby, in all things
approved.
Section S. That the Mayor is hereby authorized to execute the Addendum to Tax
Abatement Agreement and Agreement to Terminate Tax Abatement Agreement Dated
November 24, 2008 Between the City of Paris, Texas and Campbell Soup Supply Company
LLC on behalf of the City of Paris substantially according to the terms and conditions set
forth in Exhibits 1 and 2.
Section 6. That this approval and the execution of the agreements on behalf of
the City is not conditioned upon approval and execution of any other tax abatement
agreement amendment or termination by any other taxing entity.
DULY PASSED AND APPROVED this 22nd day of July, 2019.
...............................
CITY Paula Portugal, Mayor(P o Tem
O A�®®'_
ATTEST:
ce Ellis, City Clerk
AP OVED AS TO FORM:
_.. _..�.............. ....
Steph-I iie H. Harris, City Attorney
THE STATE OF TEXAS
COUNTY OF LAMAR
ADDENDUM TO TAX ABATEMENT AGREEMENT
This Addendum ("the ADDENDUM") to a tax abatement agreement ("the
AGREEMENT") dated November 24, 2008 is entered into by and between the CITY OF
PARIS, 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 CAMPBELL SOUP SUPPLY COMPANY LLC acting by and through its authorized
officer whose signature appears below (hereinafter referred to as "OWNER").
WITNESSETH:
WHEREAS, heretofore, on November 24, 2008, the CITY and OWNER entered into the
Tax Abatement Agreement (the "AGREEMENT") attached hereto as Exhibit 1 and incorporated
by reference as if fully set forth herein related to OWNER's Multi -Serve Serve Beverage Line
(hereinafter referred to as the "Fusion Line"); and
WHEREAS, the term of said AGREEMENT expires on December 31, 2019; and
WHEREAS, said AGREEMENT relates to PROPERTY owned by OWNER within the
City of Paris, which PROPERTY is located within an Enterprise Zone as set forth in the
AGREEMENT;
WHEREAS, the Texas Tax Code Sec. 312.208 and tax abatement guidelines in effect in
2013 and on the date of the execution of this ADDENDUM (a copy of which tax abatement
guidelines effective January 22, 2018 are attached hereto as Exhibit 2 and incorporated herein
by reference) allow for modifications of a tax abatement agreement during the term of said
agreement; and
WHEREAS, due to careful budgeting and better than expected efficiencies in the Fusion
Line, OWNER was able to install said line with a lower capital investment than anticipated by
the AGREEMENT and to operate said line with fewer than the number of employees anticipated
by the AGREEMENT; and
WHEREAS, due to prevailing conditions in the industry, OWNER has closed the Fusion
Line, repurposed much of the equipment on said Fusion Line and diverted resources associated
with the Fusion Line for production on OWNER's sauce line, and invested over $10,000,000 in
said sauce production; and
WHEREAS, given all of the above, OWNER has requested certain modifications to the
AGREEMENT relating to the minimum capital investment for installing the Fusion Line and
number of employees OWNER is required to maintain with respect to the Fusion Line at said
PROPERTY during the AGREEMENT; and
WHEREAS, the CITY has agreed to said modifications of the AGREEMENT because
said modifications 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 abatements and the ordinance creating such Enterprise Zone adopted by the CITY
and all applicable laws and otherwise serve a public purpose in maintaining a major employer in
the CITY;
NOW, THEREFORE,
The CITY and OWNER hereto do mutually contract and agree to modify the
AGREEMENT as follows:
A. The first sentence of Section 3.2 is hereby amended read as follows:
"3.2 The REAL ESTATE IMPROVEMENTS and the PERSONAL PROPERTY
IMPROVEMENTS will be at a cost equal to or in excess of $41,600,000.00 and shall be
substantially completed during the month of July, 2009; provided, that 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."
B. Section 5.2 is hereby amended in its entirety to read as follows:
"5.2 Not later than January 1, 2010, OWNER will create at least fifty-four (54) new,
permanent, full-time jobs at its Paris, Texas plant for work to be performed substantially either
(a) at the site of the IMPROVEMENTS, or (b) locally in support of operations performed by
others at the site of the IMPROVEMENTS. Such jobs shall be filled with priority given to
promote and/or retain among equally qualified job applicants the hiring of employees first from
within the Enterprise Zone, second from within the corporate limits of the City of Paris, Texas,
and third, from within Lamar County, Texas, subject to the laws and regulations of the United
States of American and the State of Texas, and subject to any labor contracts currently in effect
and any successive contracts or past practices. The OWNER agrees that it will not fill the new,
permanent, full-time jobs with employees from among its current employees at the existing site
without immediately filling the positions vacated by such employees."
All other terms in the original AGREEMENT dated November 24, 2008 remain
unaltered by this ADDENDUM, and remain in full force in effect as if fully set forth herein.
WITNESS our hands this day of .2019.
THE CITY OF PARIS, TEXAS
By=_ _—_...........— ........................
Steven J. Clifford, M. D., Mayor
2
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
ATTEST:
Secretary
CAMPBELL SOUP SUPPLY COMPANY LLC
A Texas Limited Liability Company
Richard J. Landers, Vice President
Tax & Real Estate
LIST OF EXHIBITS TO THIS ADDENDUM:
Exhibit 1: Tax Abatement Agreement dated November 24, 2008.
Exhibit 2: CITY'S Guidelines and Criteria for Tax Abatements dated January 22,
2018.
THE STATE OF TEXAS
COUNTY OF LAMAR
ADDENDUM TO TAX ABATEMENT AGREEMENT
This Addendum ("the ADDENDUM") to a tax abatement agreement ("the
AGREEMENT'S dated November 24, 2008 is entered into by and between the CITY OF
PARIS, 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 CAMPBELL SOUP SUPPLY COMPANY LLC acting by and through its authorized
officer whose signature appears below (hereinafter referred to as "OWNER").
WITNESSETH:
WHEREAS, heretofore, on November 24, 2008, the CITY and OWNER entered into the
Tax Abatement Agreement (the "AGREEMENT") attached hereto as Exhibit 1 and incorporated
by reference as if fully set forth herein related to OWNER's Multi -Serve Serve Beverage Line
(hereinafter referred to as the "Fusion Line"); and
WHEREAS, the term of said AGREEMENT expires on December 31, 2019; and
WHEREAS, said AGREEMENT relates to PROPERTY owned by OWNER within the
City of Paris, which PROPERTY is located within an Enterprise Zone as set forth in the
AGREEMENT;
WHEREAS, the Texas Tax Code Sec. 312.208 and tax abatement guidelines in effect in
2013 and on the date of the execution of this ADDENDUM (a copy of which tax abatement
guidelines effective January 22, 2018 are attached hereto as Exhibit 2 and incorporated herein
by reference) allow for modifications of a tax abatement agreement during the term of said
agreement; and
WHEREAS, due to careful budgeting and better than expected efficiencies in the Fusion
Line, OWNER was able to install said line with a lower capital investment than anticipated by
the AGREEMENT and to operate said line with fewer than the number of employees anticipated
by the AGREEMENT; and
WHEREAS, due to prevailing conditions in the industry, OWNER has closed the Fusion
Line, repurposed much of the equipment on said Fusion Line and diverted resources associated
with the Fusion Line for production on OWNER's sauce line, and invested over $10,000,000 in
said sauce production; and
WHEREAS, given all of the above, OWNER has requested certain modifications to the
AGREEMENT relating to the minimum capital investment for installing the Fusion Line and
number of employees OWNER is required to maintain with respect to the Fusion Line at said
PROPERTY during the AGREEMENT; and
i5x,o i rr�-,
WHEREAS, the CITY has agreed to said modifications of the AGREEMENT because
said modifications 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 abatements and the ordinance creating such Enterprise Zone adopted by the CITY
and all applicable laws and otherwise serve a public purpose in maintaining a major employer in
the CITY;
NOW, THEREFORE,
The CITY and OWNER hereto do mutually contract and agree to modify the
AGREEMENT as follows:
A. The first sentence of Section 3.2 is hereby amended read as follows:
"3.2 The REAL ESTATE IMPROVEMENTS and the PERSONAL PROPERTY
IMPROVEMENTS will be at a cost equal to or in excess of $41,600,000.00 and shall be
substantially completed during the month of July, 2009; provided, that 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."
B. Section 5.2 is hereby amended in its entirety to read as follows:
"5.2 Not later than January 1, 2010, OWNER will create at least fifty-four (54) new,
permanent, full-time jobs at its Paris, Texas plant for work to be performed substantially either
(a) at the site of the IMPROVEMENTS, or (b) locally in support of operations performed by
others at the site of the IMPROVEMENTS. Such jobs shall be filled with priority given to
promote and/or retain among equally qualified job applicants the hiring of employees first from
within the Enterprise Zone, second from within the corporate limits of the City of Paris, Texas,
and third, from within Lamar County, Texas, subject to the laws and regulations of the United
States of American and the State of Texas, and subject to any labor contracts currently in effect
and any successive contracts or past practices. The OWNER agrees that it will not fill the new,
permanent, full -tune jobs with employees from among its current employees at the existing site
without immediately filling the positions vacated by such employees."
All other terms in the original AGREEMENT dated November 24, 2008 remain
unaltered by this ADDENDUM, and remain in full force in effect as if fully set forth herein.
WITNESS our hands this _ day of _, 2019.
THE CITY OF PARIS, TEXAS
Steven J. Clifford, M. ..._
D., Mayor
2
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
ATTEST:
Secretary
CAMPBELL SOUP SUPPLY COMPANY LLC
A Texas Limited Liability Company
M
Richard J. Landers, Vice President
Tax & Real Estate
LIST OF EXMBITS TO THIS ADDENDUM:
Exhibit 1: Tax Abatement Agreement dated November 24, 2008.
Exhibit 2:
CITY'S Guidelines and Criteria for Tax Abatements dated January 22,
2018.
3
THE STATE OF TEXAS
COUNTY OF LAMAR
TAX ABATEMENT AGREEMENT
This agreement is entered into by and between the CITY OF PARIS, TEXAS, a home -
rule municipal corporation, situated in Lamar County, Texas, acting by and through its
authorized officer whose signature appears below (hereinafter called "CITY"), and
CAMPBELL SOUP SUPPLY 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
September, 2004, by Resolution No. 2004-164, 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, the City Council of the City of Paris did heretofore, on the 128' day of
December, 2005, by Resolution No. 2005-144, as amended by Resolution No. 2006-042, dated
March 13, 2006, pass and adopt a policy on tax abatement incentives and appropriate guidelines
and criteria governing tax abatement agreements to be entered into by the CITY as required by
the Property Redevelopment and Tax Abatement Act, as amended;
WHEREAS, on November 24, 2008, the City Council of the City of Paris, Texas
readopted and extended the Policy, Guidelines and Criteria for Tax Abatement Incentives for an
additional two years or until such time they are further amended by Council; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 41" day of
December, 1997, following public hearings as required by law, pass Resolution No. 97-143,
establishing an Enterprise Zone in the City of Paris, Texas to encourage appropriate investments
by the industrial and business community and to provide tax incentives within the zone to
encourage said investment as authorized by the Texas Enterprise Zone Act, Chapter 2303, Texas
Government Code, as amended (the "Act"); and
WHEREAS, the PROPERTY, as defined herein, upon which the IMPROVEMENTS are
to be located is situated within the Enterprise Zone and the contemplated use of the PROPERTY
and IMPROVEMENTS, as hereinafter defined, in the amount as set forth in this 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 and the ordinance creating such Enterprise Zone adopted by
the CITY and all applicable laws.
TAX AATERtFhr A E�9EAr- Page 1
NOW, THEREFORE,
The Parties hereto do mutually contract and agree as follows:
9
1.1 The effective date of this AGREEMENT is the 24" day of November, 2008, with
1. 4
tax abatement 'beginning with the -tax year commencing January 1, 2010, and exparing on
December 31, 2019.,
I.
Area to be Improved
2.1 The IMPROVEMENTS to be the subject of this AGRFEEMENT consist of (1)
improvement to an existing building on real estate ("'REAL ESTATE IWROVE MENTS,"), and
(2) personal property, machinery and equipmentCTERSONAL PROPERTY
IMPROVEMENTS"). Collectively, all such improvements which are the subject hereof -shall be
called the 'IMPROVEM.EMIS. ". The IMPROVEMENTS shall be located upon and within the
OWNER'S current facilities consisfing of land, 'buildings and other structural improvements
situated at 500 Loop 286 NW, in the City of Paris, 'l.'..=ar County, Texas,herein called the
"PROPERTY", as further depicted in Exhibit A attached hereto'and made a part -hereof for all
purposes.
3.1 The -project contemplated in this AGREEMENT will include necessary REAL
ESTATE IMPROVEMENTS to an existing building within OWNER'S Paris, Texas plant to
modify the building to accommodale the OWNERS addition of a Juice Manufacturing Line of
products., The IMPROVEMENTS will require engineering and des.ign work, procurement of
equipment, infrastructure and utilities modifications and electrical and mechanical installation
w 'thin the OWNERS Paris plant. The PERSONAL PROPERTY 1WROVEMENTS include
new machinery and equipment capable of producing 12, 16, 46 and 64 ounce PET bottles for V-
8, Tomato, -P ion and Splash juice -varieties. This required equipment includes Preparation
Processes, Product Blending Process, Juice Filling Process, and Labeling and Case Packing
Process. All such equipment shall be particularly described in the Certificate of Completion
prepared 'by OWNER after the completion and installation of the building 'improvements,
personal property, machinery and equipment described herein. The Certificate of Completion
shall be filed with the City Manager for the City of Paris, Texasand time ChiefAppraiw,.r of the
1,arnar County Appraisal District, Following review and confirmation of the inform aition
provided in the Certificate of Completion, said Certificate %hall be duly executed by the Mayor
of the Cit Exhibit —.. ...... I
.y of Paris in -the form attached hereto as B.
3.2 The REAL ESTATE IMPROVEMENTS will be at a cost equal to or in excess of
$1,155,000.00, AND THE PERSONAL PROPERTY IMPROVEMENTS will be at a cost equal
to or in excess of $46,035,000.00 for the cost and installation of machinery and equipment, and
shall be substantially completed during the month of July, 2009; provided, that 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, or the
public enemy, 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. The date of completion of the IMPROVEMENTS
shall be set forth in the Certificate of Completion prepared by OWNER and signed by the Mayor
for the City of Paris, Texas.
IV.
Consideration
Improvements
4.1 The OWNER agrees and covenants that it will diligently -and faithfully, in a good
and workmanlike manner, pursue completion of the IMPROVEMENTS as provided herein. As
a good and valuable consideration of 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 will procure a valid waiver thereof. In further consideration, -
OWNER shall, from the date a Certificate of Completion is issued, or that the
IMPROVEMENTS are completed as agreed, until the expiration of this AGREEMENT,
continuously operate and maintain the PROPERTY and IMPROVEMNETS, including the
specific units of new machinery and equipment as identified herein, as a food and juice
production plant.
V.
Consideration
Jobs
5.1 The OWNER currently employs 382 persons in permanent hull -time jobs at its
Paris, Texas plant that reside in the City of Paris, Texas; and it employs a total of 563 persons in
permanent full-time jobs that reside in Lamar County, Texas. Additionally, OWNER currently
employs 80 or more permanent full-time employees at its Paris, Texas plant that reside in the
Enterprise Zone.
5.2 Not later than January 1, Zulu, OWNER will create at least fifty-seven (57) new,
permanent, full-time jobs at its Paris, Texas, plant for work to be performed substantially either
(a) at the site of the IMPROVEMENTS, or (b) locally in support of operations performed by
others at the site of the IMPROVEMENTS. OWNER contemplates hiring 46 Production
Operators, 6 Maintenance Personnel and 5 Other Personnel to comprise such new, permanent,
full-time jobs. Such jobs shall be filled with priority being given to promote and/or retain among
7AX„ABA,T........,,,u NT ,L_.,. i T -Page 3
EiNENT AGR': ?�vpEm—.
equally qualified job applicants the hiring of employees first from within -the Enterpnse Zone,
second from -within the corporate limits of the City of Paris, Texas, and -third, from within Lamar
County, Texas, subject to the laws and regulations of the United States. of America and the State
of Texas, and subject to any labor contracts currently in e5ect and any successive contracts or
past practices. The OWNER agrees that it will not fill the new, permanent, full -time jobswith
employees from among its current em- loyees at the existing site without immediately filling the
.P
positions -vacated bysuch employees..
5.3 OWNER agrees that during the term of this AGREEMENT it will not reduce.the
total number of existing permanent Rill -time jobs at it's Paris, Texas plant (as referenced herein)
plus 57 additional permanent full-time jobs as called for in this AGREEMENT.
V1.
Default/Liquidated Damages
6.1 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 arno required herein.; or (b) the jobs required to be
created and retained by OWNER, as provided in Article V herein, are not mainIain ed.in
accord' nce with this AG REEMENT; or (c) OWNER allows its ad valorem taxes owed the CITY
to become delinquent and fails to timely and properly follow the legal procedures for prof or.
contest of any such ad valorem taxes; or (d) OWNER mat lily breaches any of the othea terms
and conditions of this AGREEMENT, then OWNER shall be in default of this AGREEMENT.
In the event the OWNER defaults in its performance of either (a), (b) (c) or .(d) above, they. the
CITY shall give the OWNER written notice of such default and if the OWNER has not, cured
such default within sixty (60) days of said written notice, this AGREEMEN"r maybe modied
or terminated by the CITY. Notice shall be in accordance with .paragrakph 13.3.
6,2 As liquidated damages in the event of default, and in accordance with the
requirements of Section 312.205 (a)(4) of the Property Tax Code of the State of Texas, all taxes
which otherwise would have been paid by OWNER to the CITY without the bencfit of
Abatement, together with interest to 'be charged at the statutory to for delinquent taxes as
determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties
pie rmittedby the Property Redevelopment and Tax Abatement Act and the Property Tax Code of
the State of Texas, shall be recaptured and will become a debt to the -CITY and shill be due,
owing, 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 la offsets,
settlements, deductions, or credits -to -which OWNER may be entitled. The .P - arties acknowledge
that actual damages in the event of default and termination 'would be speculative and difficult to
determine.
I®
Personal Property Tax Abatement
7.1 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 the ad valorem -P roperty
.
Page 4
Vill.
No Conflict of Interest
9.1 The terms and conditions of the AGREEMENT are binding upon the successors
and assigns of all parties hereto.
9.2 It is understood and agreed between the parties that the OWNER, in performing
its obligations hereunder, is acting independently, and the CITY assumes no responsibility or
EMKn - Page 5
liability in connection therewith to third parties; and OWNER agrees to indemnify and hold
harmless the CITY therefrom. It is further understood and agreed among the parties that the
CITY, in performing its obligations hereunder, is acting independently, and 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.
X.
Compliance Provisions
10.1 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 notice at least
fourteen (14) days in advance 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 December 31, 2019. The Asset Report will provide 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.
10.2 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 are 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 this AGREEMENT during
the term of the AGREEMENT, and OWNER shall provide evidence as to the creation of the
fifty-seven (57) new, permanent, full time jobs described in this AGREEMENT. All inspections
will be made only after giving the OWNER 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 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. 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.
XI.
Initial and Annual Reporting
11.1 The OWNER further agrees that it will, within thirty (30) days of completion of
the IMPROVEMENTS, provide CITY with a sworn report, written on company letterhead and
TAX ABAT .NZh' A9 EEM ENT -Page 6
signed by an authorized representative of OWNER, which contains the following information:
(a) Copy of the printout from the Lamar County Appraisal District showing the
market value of the PROPERTY prior to the construction of the
IMPROVEMENTS;
(b) Detailed description of IMPROVEMENTS;
(c) Detailed description of any miscellaneous items of office equipment and the
actual cost of such added office equipment;
(d) 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) Detailed list of and actual cost of added machinery and equipment;
(fj Actual cost of capital IMPROVEMENTS; and,
(g) Date of substantial completion of the IMPROVEMENTS as defined in paragraph
3.1 hereof.
11.2 The OWNER further agrees that it will provide CITY with an . annual, sworn
report which contains the following information: (a) the name of each original hiree in the newly
created job, date of hire, and place of residence of the hiree, and (b) statement 'as to -whether or
not the fifty-seven (57) new, permanent, full time jobs are still in existence and filled, and (c) the
name of the current employee in the newly created job, date of hire, and place of residence of the
hiree. Additionally, OWNER shall certify, in writing, that it is in compliance with each
applicable term of this AGREEMENT. Such annual report shall be furnished on the forms
provided by the City and attached hereto as Exhibit D.
11.3 In addition to the annual report required under Section 11.2 hereof, the OWNER
further agrees that it will provide CITY a copy of its Texas Workforce Commission Employer's
Quarterly Report within thirty (30) days of its filing of the same with the Texas Workforce
Commission.
XII.
Authority to Contract
12.1 , This AGREEMENT was authorized by resolution of the City Council at its
regularly scheduled meeting on the 20 day of November, 2008, authorizing the Mayor to
execute the AGREEMENT on behalf of the CITY.
12.2 This AGREEMENT was entered into by CAMPBELL SOUP SUPPLY
COMPANY LLC (PARIS PLANT) 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:
OWNER CITY
CAMPBELL SOUP SUPPLY COMPANY LLC City Manager
Attn: Richard J. Landers, V.P.-Taxes City of Paris
500 NW Loop 286 P. 0. Box 9037
Paris, TX 75461-9016 Paris, Texas 75461-9037
Witha Co 1—T -0 -
Higgs A'ag rim/
1 Campbell Place
Camden, NJ 08101
Phone: (856) 968 - 2863
City Clerk
City of Paris, Texas
P. O. Box 9037
Paris, Texas 75461-9037
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
said 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
AX GHAT IMENT AC EE EnT - Page 9
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.
Witness our hands this 24th day of November, 2008.
ATTEST:
ice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIl ar. Civ ttorney
ATTEST:
Secietary
CITY OF PARIS, TEXAS
By:
CAMPBELL SOUP SUPPLY COMPANY LLC
By: 1�^�� ..._.
Richard 7. Lan ers, Vice President - Taxes
TAXA ATEMENT G EE ENT- Page 9
1 )OIIBY , "�i�') T AA:.. BA'I E' N,IE:,.r' A(;Ryi ERIE 1" ;I
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E'�xhibit A
I
—:AS3 AV
. . .. ........
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CAMPBELL SOUP SUPPLY COMPANYLLLC
PARIS TEXAS PLANT
JUICE PROJECT
MAJOR EQUIPMENT INCLUDED in PROJECT
EMPTY BOTTLE DEPALLETIZER
EMPTY BOTTLE CONVEYORS
V -T & FUSION EXTRUCTORS
CONTINUOUS BLEND SKID
STERILIZER
FILLER/CAPPER
FULL BOTTLE CONVEYANCE FILL-LABLE
COOLER INFEED & SPRAY COOLERS
SHRINK LABELING
MODULE LABELER
FULL BOTTLE CONVEYANCE POST LABEL
CASEPACKER
CASE CONVEYORS
FINISHED GOODS CASE PALLETIZER
CITY OF PARIS, PARIS, TEXAS
TAN AB.1'IT,?4IENT AND REINVESTMENT ZONE DESIGNATION
APPLICATION
T HISAPPLIC A TION MUST RE RECEII'ED B )'THE CITYNOT LESS THANSIXTi'(60)DAYS PRIOR TO THE
DA TE TIM T CONSTR11CTIOl1' OF THE IMPROVEMENTS IS EXPECTED TO COMMENCE.
1 NAMF OF APPLICAN"f FIRM:
C amllbell Souk SuJIti rvCompan�,mLLC
2. ADDRESS:
e.xas 15,460
3. '11.1 :PIIONE: 903-784-3.341
4. PROJEC" 1 ADDRESS (if different from above):
Sde as .•f?
5. TYPE ()1' BUSINESS ORGANIZATION (corporation, etc.):
Limited liability Company
4. NAMI:(S) OF PRINCIPAL OWNERS OR OFFICERS:
i,ist ,mt�:,V�r
7 IS THIS BUSINESS SEASONAL 1N NATURE: YES x NO
S. NUMBER OF CURRENT EMPLOYEES:
(in Enterprise Zone) 80
(in City of Paris) 382
(in Lamar County) 563
9. CURRI."NTPAY1101.1- (in City of Paris): S 15.3 million
Ii) NUNVOR OF 'SEW JOBS PROPOSED: fifty-seven (57)
11 1.1S]''I"Ill-TYPEAND NUMBER OF NEW JOBS TO BE CREATED AND THE PROJECTEI)
SALAR)'FOR EACH JOB:
PT....od—uct-j-o11n—11-1 "I'llA.6 _fLpop
Maintenance Personnel .... .... 2287/hour
-
Othlerlersonne.l.- 15-1,,'uqQpj , _1ij...O.Q.../hour
12. PLEASE PROVIDE INFORMATION PERTAINING TO THE TRANSFER OF JOBS RELATED
TO rllF IMPROVEMENTS OR EXPANSION:
Not -Agglicable
13. TOTAL IMPACT ON PAYROLL FROM NEW JOBS:
6pr(j0 Annuafl v
14. PRE -PROJECT MARKET VALUES, AS DETERMINED FOR LOCAL PROPERTY TAXATION,
OF THE. EXISTING FACILITY, SITE, TANGIBLE PERSONAL PROPERTY, AND
INVENTORY:
A. REAL PROPERTY: $14,1599690
B. 'rANGIBLE PERSONAL PROPERTY $116,263,770
15 GIVE A DETAILED DESCRIPTION OF THE PROPOSED IMPROVEMENTS OR EXPANSION
(ATTACH ADDITIONAL SHEETS, IF NECESSARY):
Juice Manufacturing L e - includes ca rabilitpfor 1,;.,16,46 and 64 oz PET bottles for V8.jqr
V -Fusion and SpI shjqj_qg_y4Kjqjjps Required� —uw rrment includes P ati'on ..P... r..ocesses, Product
Blend in R Process, uice Fil lip.L,Prpge_ss ,and Labeling, and Case Pack,in,,ftceg,
L _
16. THE ESTIMATED DATE OF COMPLETION OF THE IMPROVEMENTS:
July 2009
17. THE ESTIMATED DATE OF OPERATION OF THE IMPROVEMENTS OR EXPANSION:
A.u.6,—m-290-9
19, ESTIMATES OF AMOUNTS TO BE INVESTED:
A. PURC14ASE OF I -AN DiB Ul LDING: S none
B. NEW BUILDING CONSTRUCTION: S none
C. BUJI.I.)1NG ADDI'1 IONS: none
1). IMPROVE MINI S TO EXISTING BLDG. S ,(.1_„5.5,909
46,035:,000 R�1AC'HINERl b. EQUIPMENT 5
F FURNITURE & FIXTURES: S none
' 4.
TOTAL IN\ ESTl1>IENT AMOUNT S7 190000
_.............
19. TOTAL INVESTMENT ELIGIBLE' FOR ABA'T'EMENT:
f' _ from item 18 (please circle) A B C �!D E F
20. LIS1 1'IIF1 YPE AND VALUE OF ECONOMIC DEVELOPMENT INCENTIVES REQUESTEI)
TAX ABATEMENT, LOCAL SALES TAX REFUND, SALE OF CITY -OWNED
PROPER -1 Y, ETC.):
S 47, 190000
2) FOR 7 OTA 1, PERSONAL PROPERTY INVESTMENT INDICATED ABOVE IN ITEM 19, LINES
E & F. SHOW PROJECTED DOLLAR VALUE IN EACH DEPRECIATION SCHEDULE.
1. (7 yr) IV. (16 yr)
II. H 0 NT) V. (18 yr)
III. (12 yr) S 46,035 O00 VI, (40 yr) $ 1 � 1.55 ,0..00
22. S'I ANDARD INDUSTRIAL CLASSIFICATION (SIC) NUMBER: 311900
23. NAME, ADDRESS, AND PHONE NUMBER OF CONTACT FOR THE PURPOSES OF THIS
APPLICATION -
Richard �;`uuarleg -1'h# 903-737-22G8
24 INDICATE] lli.: D.AI F ANI) TINIE THAT CITY OFFICIAIS MAY INSPECT THE CURRENT
I :AO'11.]-l'IFS ITIOR TO TI iE C'OMMENCEMENT OF CONSTRUCTION:
ION:
25. ]F APPLICABLE. THE NAME., ADDRESS, AND PHONE NUMBER OF ANY CONSULTANT/
FINANCIAL ADVISOR ASSISTING YOU WITH THIS APPLICATION: None
26. Chapter 2264 of the Texas Government Code requires that each business that submits an application to
receive a public subsidy include in the application a statement certifying that the business, or a branch,
division, or department of the business, does not and will not knowingly employ an undocumented
%%-orker. An undocumented worker means an individual who, at the time of employment, is not lawfully
admitted for permanent residence to the United States or authorized under the law to be employed in
that manner in the United States. If after receiving a public subsidy, the business, or a branch ,
division, or department of the business, is convicted of a violation under 8 U.S.C. Section 1324a(f), the
business shall repay the amount of the public subsidy with interest, at the rate and according to the
other terms provided by an agreement under Section 2264.053, not later than the 120th day after the
date the public agency; state or local taxing jurisdiction, or economic development corporation notifies
the business of the violation.
1 hereby certify that Campbell Soup Supply Company, LLC Paris, Texas Plant is in compliance
with Chapter 2264 of the Texas Government Code.
27. NAME AND TITLE OF PERSON WHO WILL HAVE AUTHORITY TO SIGN ANY
AGREEMENTS RELATED 3'0 THIS APPLICATION:
28. DO YOU INTEND TO SUBMIT AN ENTERPRISE PROJECT APPLICATION? NO
29. PI-EAS1: ATTACH THE FOLLOWING:
A PLAT SHOWING THE PRECISE LOCATION OF THE PROPERTY, ALL
ROADWAYS WITHIN 200 FEET OF THE SITE, AND ALL EXISTING ZONING
AND LAND USES WITHIN 200 FEET TO THE SITE. Available upon request.
The project will take place in the existing plant.
IF THE PROPERTY IS DESCRIBED BY METES AND BOUNDS, A COMPLETE
LEGAL DESCRIPTION. Available upon request. The project will take place in the
existing plant.
:3. 1F A RECENT APPRAISAL HAS BEEN DONE, ATTACH THE SAME HERETO.
OTHERWISE, ATTACH A COPY OF THE PRINTOUT FROM THE LAMAR
COUNTY APPRAISAL DISTRICT WHICH SHOWS THE VALUE OF THE
PROPERTY. THIS PRINTOUT SHOULD BE AVAILABLE UPON REQUEST
Cosimh of:" appra�sa)s �,it�ached
CERTIFICATIONS
THE APPLICANT BELIEVES THE INFORNATION CONTAINED HEREIN ARD
SUBMITTED HEREWITH IS COMPI,OPYC AND CORRECT TO THE BEST OF HIS
OR HER KNOWLEI)GE.
THE APPLICANT HEREBY CERTIFIES TRNT `.rHE EXPANSION OR
CONSTRUCTION OF IMPROVEMENTS THESU&JECT OF THISSAPPI(7.ATION'
HAS NOT BEEN COPWENICF'I).
"ANT UNDER,`,.397ANDS THAT INITIAT1011IJ OF' T'11E PRO 'CT PR: OR
THE APPLIC � J 1� 9 1
TO RF-.lCEI,,lJrlNl(3 FINAL LOCAI., APPROVAl MAY RESULT IN THE LOSS OF'
rPHE ABATE11ENT..
THE APPLICANT UNDERSTANDS THAT, IF APPROVED, THE INFORMATION
CONTAINED liq ri-IIS ATI PLT CATION WILL 11,FORM 7HE BASIS�FOR, A, SIGNEl)
Al(3REEMrlTT BETWEEN THE APPLICANT FIRM AND THE CITY. STATE YE T'
AND LOCAL POLICY REQUIRE ANNUAL MONITORING FOR COMPLIANCE TO
THAT AGREEMENT. FAILURE ITO COMPLY YJAY RESULT IN 1,0&1-3 077
TWENTIVES,
THE APPLICANT HEREBY CERTIFIES THN.P THE FIRM is cur -'"IT wr, A&
TAX OBLIGATIONS '1'0 '1'HE CITY OF' PAR ]I
COMPANY:
By:
........... .
(signature}
........
Name: ft
..........
Ti t1w VP
-- — ---- --- -----
Date: to/ W, 00
CAMPBELL SOUP SUPPLY COMPANY, LLC
..��.� .
PARIS TEXAS PLANT
JUICE PROJECT
2008 APPRAISED VALUE
DESCRIPTION
VALUE
LAND
$ 903,620
(refernee attached tax statements)
BUILDING ! BLDG IMP
$ 13,349,130
14,252,750m
ttl land&bldga � „ E w
M&E
$ 62,408,380
cold data W y m 230
�..,......0 ►en....b ted
PERSONAL PROPERTY
S 1,792,990
INVENTORY
$ 52,062,420
ttll.. m..m
TOTAL VALUE
13®,516,540
mwlasm; �mm I mm ml129,ti12.420
l:apmtol Apprasmal mmlllmmm (see oppr W attached) ...,
TRX I13 CAP I T 0 L A -PRAI SAL GROUP INC
11,'2CI08 14.27 TAX YEAS 2008 INDUSTRIAL PROPERTY F1. PAGE 1
DETAIL LISTING INCLUDING WITHHELD ITEMS
u.. -ENT: 139 LAMAR COUNTY APPR DIST
OWNER I 000200
C,,,INER :
CAMPBELL SOUP COMPANY
P.O. Box 116
.4001002)
END=Z
PARIS TX 75460
ITEM
PC
DESCRIPTION C -S -T -R -W -M -F -H
-D-1-2-3
2007 VALUE
2008 VALUE
010
F2
L -N -P- _ _
- -P- -
8,661,290
8,740,690
IMPROVEMENTS
38122
020
L2
10,191,760
10,910;580
MACHINERY AND EQUIPMENT
67453
025
F2
L--N-P- - - -
-P- -
4,730,750
4 608 440
PREGO PLANT -BUILDINGS
108618
028
F2
L -N -P- _ - -
-P-
15,9008470
15,547,560
PREGO PLANT -PROCESS IMPROVEMEENTS
111150
030
L2
L -N -P- -
-:...
1 867,080
1 792,990
PERSONAL PROPERTY
118992
040
L2
L -N -P- - - - -
- -P-
37,385 260
43,942,830
INVENTORY AT 100%
105335
080
L2
_
_p_
10'007,100
7,731,190
PACFINISHED1G00D^
2300 SW WE $
107658
086
L2
L_C_P_ _ _
_P_ -
0
0
INV. AT WE PACK - CLARKSVILLE ST
402873EANDGOODS
2874
096
L2
RND@R100� -
- - -
0
388,400
INV. @ 6875 LAMAR
FINISHED GOODS
402875
T.C'AX 113 C A P .L' 0 .d,..d' R A ..d_ S A L G Y.'9. 0 U P I N Wim.
11./207/08 14.27 T YEAxw 2008 1'NDU T'R1AL PROPERTY Fl—.W,
DETAIL LISTING INCLUDING WITHHELD ITEMS
C—ENT: 139 LA14AR COUNTY .APP.R ;01ST
OWNER ID. 000200
OWNER:: OAdQEELL ROUP COMPANY
(001002 Pm � BOX 1.16
REND=Z PARIS TX 75460
STEM PO L:ESCRIPTION C— wT'—R._ — — ._H—L-1.-2-3 2007 VALUE
100 F2 PACE IMPROVEMENTS L —ABATED 7 Rs.v —P— 19, 761, 930
YR 1 = 2000 838122
O0353EL WITH ITEM 110 FOR. 2008
2008 VALUE
0
1.1.0 .F2 PACE IMPROVEMENTS
_ _ _ —P— 19®751.,9.30 20,186,010
400,354
1.30 L2 L, P— P— _ _ _ m ._ _ P._ 0 0
INV. AT WE PACK W/R
7TH SE STREET
AND 402338
140 L2 L_P_P_ _ n _ _ _P_ _ 275,000 0
3820 LAMAR AVE.
405625 AND 405626
1.50 L2 L.—N—P— 1, 065, 000 0
la
6290 1271 NORTH POWLERL
405627 AND 405628
.160 F2 L.__._P— ® ® ® m — _p_ m 8,429,800 15,764,230
DOLL BLEND LINE — ABATED ACCT .
:11.7202 Eu A 1..00 Ery A 1.00
161 F2 COLD EL., LINE m NON—ABATED ACCT -... .... _ 8, 42.9p 800 15,764,230
117204
OWNER....,...... ,� ............... .., , ......, , ..... ...�..., ...,.�.�....,...�.,.,.,..,.,w..,.,__. 920
TOTALS --==-� 138,017,370 129,612,
P XHIBI'l i%BAITNIENTAU E
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L:.I1IL'i'T' L
CERTIFICATE OF COMPLETION
STA'L'E OF TEXAS §
COUNTY OF LAMAR §
CITY OF PARIS §
The County of Lamar has executed a tax abatement agreement with CAMPBELL
SOUP SUPPLY COMPANY LLC (the "Owner") for the inclusion of new improvements
and equipment within its existing plant in Paris, Lamar County, 'texas.
The Owner has complied with all terms of the tax abatement agreement and the
County of Lamar herein verifies that the improvements agreed to be built or used were in
fact completed, as provided.
NOW THEREFORE. the County of Lamar authorizes that the property
described herein shall receive a tax abatement of 100% of the taxes assessed upon the
value of the new improvements included within its property in accordance with the Tax
Abatement Agreement signed November 24, 2008, with the tax abatement beginning
January 1, 2010, and extending for a duration of ten (10) years until December 31, 2019
APPROVED this 24`h day of November, 2008.
1 JIM
r t'.
ATTEST:
Lamar
,�... _�.. "i,xW � ( � liINIENT m ' " . N � B, ......
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Campbell Soup Documents Summary
August 2008
Board minutes reflect the following:
Executive session ended at 6:35 p.m. John Wright made a motion to approve an
expansion incentive agreement ibr Campbell Soup where the PEDC advocates:
• 100% real and personal property tax abatement over ten (10) years with the City, County
and PJC on their new product line entitled Fusion.
• $227.500.00 toward the training of 65 new employees related to the new production line.
• And $3800.00 cash grant for each new permanent employee, related to the expansion,
over their current total workforce of 800. The total not to exceed $250,000.00.
The motion passed unanimously on a second by Dick Severson.
November 2008
Tax abatement agreement executed between Soup and City and County
March 2009
Found draft of Incentive Agreement saved on Director's computer. NOTE—I have found NO
signed copy of this document. Draft references the following incentives:
a Creation oi'65 FTE jots. retention of 1000 current FTE jobs, $3500 for each new FTE
job created above 1000 (page 1. paragraph 6)
$227.000 for workforce development and training
Agreement effective as of March 1, 2009, effective for 60 months (page 2, paragraph 1)
Maintain at least 1000 jobs (page 2, paragraph 4)
• $3500 paid for each additional FTE over 1000, not to exceed $250,000 (page 2,
paragraph 6)
• $227.000 for workforce development and/or training (page 2, paragraph 8)
• Maintain a workforce of no less than 1000 ITE (page 2, paragraph 9)
June 2009
PEDC board meeting minutes from June 9"' reference board approval of the following for Soup:
As a result of executive session discussion. the board authorized an incentive package
for Campbell Soup of up to $100,000 for training and up to a $100,000 cash grant upon
net gain and maintaining of employees above their current employment level. The
action passed unanimously an a motion by Dan Smith. seconded by John Wright.
Found letter dated June 23�d with electronic signature of Director. NOTE—there is no indication
of whether or not this letter was sent to Soup. The letter references the following incentives as
approved by the PEDC board for Cold Blend expansion:
$100.000 in workforce training finds
• $5000 per additional FT over and above 850 employees_ not to exceed $50,000
October 2009
Received letter lrom Soup requesting payment of'S475,000 in incentives ($225.000 cash grant,
$250,000 workforce development/training funds). Enclosed with letter is an incentive agreement
between Soup and PEDC. NOTE—the enclosed agreement is NOT fully executed (only signed
by Richard Landers of Soup) and I hai a not seen a fully executed copy; nor do I have even a
draft of'the agreement as it is presented by Soup. The agreement references the following
incentives for new beverage line;
Creation of 54 FTE jobs, retention of 563 current FTE jobs of Lamar Co. residents.
$225.000 for nexv FTI: ,job created above 563 (page 1. paragraph 6)
$250.000 for %vorkforee development and training
UAgreement efTective as of Auiust i . 2009. effective for 60 months (page 2. paragraph 1)
Maintain at least 563 jobs of Lamar Co. residents (page 2. paragraph 4)
$225.000 paid for the additional 54 FTE over 563 (page 2. paragraph 6)
$250.000 forworkforce development and/or training (page 2, paragraph 8)
Maintain a work, force of no less than 563 FTE of Lamar Co. residents (page 2. paragraph
g)
-511 s M-
L the undersigned, on my oath as a corporate officer, and duly authorized to make this
Affidavit on behalf of (Company Name)
hereby swear and affirm that the documentation and information prepared under my direction and
attached hereto, containing the names, hire dates, wage levels and place of residence of those
employees filling (number) m_ new, full-time jobs created during the calendar year
ww , in accordance with the terms of the (check all that apply) incentive and/or
abatement agreement(s) dated —11111111111-1-111111-1, 20 , are, in all things true
and correct.
Witness my hand this — , .. ......._ day of m.m......m _.�, 20
Name:
Title:
Signature:
STATE OF TEXAS }
}
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared
known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
Notary Public, State of Texas
CERTIFICATION
I, the undersigned, hereby certify that the (number) MMMMMM� new, full-time jobs created
during the calendar year .w,.. ._ . in accordance with the terms of the (check all that apply)
incentive and/or abatement agreement(s) dated� IT 1 20.....
are still in existence and filled by permanent employees. I fiuther certify that (Company Name)
is in compliance with each
applicable term of the aforementioned agreement(s).
Witness my hand this . m_ ......................... day of - 0
Name:
Title:
Signature:
STATE OF TEXAS )
)
COUNTY OF LAMAR }
BEFORE ME, the undersigned authority, on this day personally appeared
known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
20
THE STATE OF TEXAS
COUNTY OF LAMAR
AGREEMENT TO TERMINATE TAX ABATEMENT AGREEMENT DATED
NOVEMBER 24, 2008 BETWEEN THE CITY OF PARIS, TEXAS
AND CAMPBELL SOUP SUPPLY COMPANY LLC
This Agreement to Terminate (the "TERMINATION AGREEMENT") a Tax Abatement
Agreement (the "AGREEMENT") dated November 24, 2008, as modified by the ADDENDUM
(as defined below) is entered into by and between the CITY OF PARIS, TEXAS ("CITY"), a
Texas municipal corporation situated in Lamar County, Texas, acting by its authorized officer
whose signature appears below, and CAMPBELL SOUP SUPPLY COMPANY LLC
("OWNER") acting by and through its authorized officer whose signature appears below.
WITNESSETH:
WHEREAS, heretofore, on November 24, 2008, the CITY and OWNER entered into the
Tax Abatement Agreement (the "AGREEMENT"), attached as hereto as Exhibit 1 of Exhibit A
hereto and incorporated by reference as if fully set forth herein, related to OWNER's Multi -
Serve Beverage Line (also referred to as the "Fusion Line"); and
WHEREAS, heretofore, on July 22, 2019, CITY and OWNER entered into an
Addendum to Tax Abatement Agreement (the "ADDENDUM"), attached hereto as Exhibit A
and incorporated by reference as if fully set forth herein, modifying certain terms of said
AGREEMENT; and
WHEREAS, the term of said AGREEMENT, as modified by the ADDENDUM, expires
on December 31, 2019; and
WHEREAS, said AGREEMENT relates to PROPERTY owned by OWNER within the
City of Paris, which PROPERTY is located within an Enterprise Zone as set forth in the
AGREEMENT;
WHEREAS, the Texas Tax Code Sec. 312.208(b) provides that a tax abatement
agreement may be terminated by mutual consent of the parties in the same manner that the
agreement was approved and executed; and
WHEREAS, due to prevailing conditions in the industry, OWNEK has closed the Fusion
Line at OWNER's PROPERTY and has diverted resources associated with the Fusion Line to
sauce production within the Paris, Texas facility and has furthermore made an additional capital
investment in said sauce production of over $10,000,000.00; and
WHEREAS, as a result of this determination, OWNER has asked to terminate the
AGREEMENT; and
6Ah;64
WHEREAS, at the time of this TERMINATION AGREEMENT, OWNER is in full
compliance with the terms of the AGREEMENT, as modified by the ADDENDUM; and
WHEREAS, the CITY has agreed to said termination of the AGREEMENT because the
redirection of resources from the Fusion Line to sauce production is in the best interest of the
CITY and the Enterprise Zone in that it will contribute to the sustainability and growth of
OWNER's PROPERTY; and
WHEREAS, termination of the AGREEMENT is consistent with encouraging
development of said Enterprise Zone in accordance with the purposes for which it was created
and is in compliance with the CITY's policy on tax abatements and all applicable laws and
otherwise serves a public purpose in maintaining a major employer in the CITY;
NOW, THEREFORE,
For all of the foregoing reasons, CITY and OWNER hereto do hereby mutually contract
and agree to terminate the Tax Abatement Agreement dated November 24, 2008 and attached
hereto as Exhibit 1 to Exhibit A and incorporated herein by reference, as modified by the
Addendum to Tax Abatement Agreement dated July 22, 2019 and attached hereto as Exhibit A
and incorporated by reference.
Henceforth, neither CITY nor OWNER owe any further obligations to one another as a
result of the AGREEMENT or the ADDENDUM, and no tax abatement shall be granted on the
property the subject of the AGREEMENT for tax year 2019.
WITNESS our hands this _ day of 2019.
THE CITY OF PARIS, TEXAS
La
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
2
Steven J. Clifford, M. D., Mayor
CAMPBELL SOUP SUPPLY COMPANY LLC
A Texas Limited Liability Company
Lo
ATTEST:
Secretary
Richard J. Landers, Vice President
Tax & Real Estate
LIST OF EXHIBITS TO THIS AGREEMENT:
Exhibit A 1:Tax Abatement Agreement dated February 25, 2013
Exhibit A:Addendum to Tax Abatement Agreement dated October 23, 2017.