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14 - Huhtamaki Tax Abatement Agreement 34!4% /& 4%8!3 ) ) #/5.49 /& ,!-!2 ) 4!8 !"!4%-%.4 !'2%%-%.4 This Tax Abatement Agreement (the “Agreement”) is entered into by and between the #)49 /& 0!2)3Ǿ 4%8!3, a municipal corporation, situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called “City”), and (5(4!-!+)Ǿ ).#ȁǾ a corporation formed under the laws of the State of Kansas, 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 10th day of January, 2022, in Resolution No. 2022-002, 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, 7(%2%!3Ǿ under the Texas Enterprise Zone Act (Texas Government Code Chapter 2303), and the Redevelopment and Tax Abatement Act (Texas Tax Code Sec. 312.2011) the designation of an area as an Enterprise Zone also constitutes designation of the area as a reinvestment zone (the “Reinvestment Zone”); and 7(%2%!3Ǿ Owner owns certain property located at 800 Center St., Paris, Texas 75460 (the “Property”) within the City of Paris, Lamar County, Texas, which, pursuant to the 2020 Census 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 %·§¨¡¨³ ΐ, attached hereto and made a part hereof for all purposes; and WHEREAS, Owner operates a facility (“Facility”) on the Property at which it manufactures folding cartons for the foodservice industry; and 7(%2%!3Ǿ Owner has agreed to make or cause to be made a significant investment in real and personal property improvements, including the installation of equipment, (“Improvements”) in connection with its expansion of said Paris, Texas Facility; and 7(%2%!3Ǿ in connection with that expansion, the Owner anticipates adding a minimum of seventy-eight (78) new full-time equivalent employment positions with benefits to its existing work force over the life of the abatement period; and 7(%2%!3Ǿ the contemplated Improvements as herein defined, in the amount as set forth in this Agreement upon and within the Property, 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 1 abatement incentives and the ordinance creating such Enterprise Zone adopted by the City and all applicable laws; and ./7Ǿ 4(%2%&/2%Ǿ pursuant to Chapter 312 of the Texas Tax Code and the Guidelines and Criteria for Tax Abatement adopted in Resolution No. 2020-002, the parties hereto do mutually contract and agree as follows: I. Term 1.1 The effective date of this Agreement is the 12thday of June, 2023, ¶¨³§ ³§¤ st ³ ·  ¡ ³¤¬¤­³ ¡¤¨­¦ ¤¥¥¤¢³¨µ¤ ¥±®¬  ­£  ¥³¤± * ­´ ±¸ ΐǾ 2025Ǿ ®± * ­´ ±¸ ΐ ®¥ ³§¤ ¸¤ ± ¨¬¬¤£¨ ³¤«¸ ¥®««®¶¨­¦ ¢®¬¯«¤³¨®­ ®¥ ³§¤ ¢®­²³±´¢³¨®­  ­£ ¨­²³ «« ³¨®­ ®¥ ³§¤ )¬¯±®µ¤¬¤­³² ²¤³ ¥®±³§ §¤±¤¨­  ­£ ³¤±¬¨­ ³¨­¦ ®­ $¤¢¤¬¡¤± ΒΐǾ 2034 Ȩ ­  ¡ ³¤¬¤­³ ¯¤±¨®£ ®¥ ten (10ȩ ¸¤ ±² Ȩ³§¤ ȏ!¡ ³¤¬¤­³ 0¤±¨®£Ȑȩȩȁ Said Abatement Period will terminate on December 31, 2034, regardless of when Owner completes the Improvements described in Sections II and III herein below. II. 4§¤ ȏ0±®¯¤±³¸Ȑ – !±¤  ³® ¡¤ )¬¯±®µ¤£ 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Property located in Paris, Lamar County, Texas and described in %·§¨¡¨³ ΑǾ attached hereto and incorporated herein by reference, which Property is within the Enterprise Zone. III. #®­²¨£¤± ³¨®­Ȁ )mprovements 3.1 The Owner shall expand its operations at its Paris, Texas Facility, by making Improvements toits current Facility toincrease its presence in the foodservice folding carton market, increase its capacity via the addition of new equipment, and make a significant increase in manufacturing efficiencies. The Improvements also include new construction and aremore particularly described in %·§¨¡¨³ Α.Owner shall causeto be made aninvestment of n® «¤²² ³§ ­ SEVENTY-&)6% -),,)/. !.$ ./ȝΐΏΏ $/,,!23 Ȩ$75,0ΏΏǾΏΏΏȁΏΏȩ to construct and install the Improvements.All of said Improvements shall be described in the City’s Certificates of Completion defined in Section X, “Reporting Requirements.” For the purposes of the default provision of this Tax Abatement Agreement (Section V), the Improvementswill be deemed completed upon the issuance by the City of a Certificate of Occupancy for the expanded space of the Facility. Once Owner has applied for said Certificate of Occupancy for such space, 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 thereof. 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, 2 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 specified in %·§¨¡¨³ 2. As good and valuable consideration for this Agreement, Owner further covenants and agrees that the construction and installation 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 Certificate of Occupancy for the expanded space of the Facility is issued, up until either the end of the useful life of the asset or the expiration of this Agreement, continuously operate and maintain the improvements for the manufacturing of food packaging, or additional lawful business purposes so long as Owner’s employment obligations under Section IV are met. 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 $75,000,000.00, and has committed to creating and staffing at least thirty (30) new full-time equivalent with benefits positions by the end of the third year after completion of the Improvements and the issuance of the Certificate of Occupancy. 4.2 In order to qualify for the tax abatement provided for herein, Owner must both create said thirty (30) full-time equivalent positions according to the above schedule and retain those positions throughout the remaining years of the Abatement Period. V. Default 5.1In the event that (a) the Improvementsfor which an abatement has been granted are not completed in accordance with this Agreement or the expenditure for the Equipment 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 fails to create and retain the required full-time equivalent positions set forth herein and on the schedule set forth herein; or(d)Owner 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 (a), (b), (c), or (d)above, the City shall give the Owner written notice of such default. If the Owner has not cured such default within ninety (90) days of said written notice, this Agreement may be modified or terminated by the City. Notice shall be in accordance with paragraph 13.3. 3 5.2 As damages in the event of default, 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 by Owner 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. VI. 4 · !¡ ³¤¬¤­³ 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 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 maintenance and operation (M&O) portion of the taxes assessed upon the increased value of the Property attributed to the Improvements described in Section III of this Agreement and specified in %·§¨¡¨³ 2 hereto, 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 3 100% Year 4 75% Year 5 75% Year 6 75% Year 7 50% Year 8 50% Year 9 50% Year 10 50% For the purposes of this Agreement, the Base Value of the existing realand personal property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2024. /¶­¤± ´­£¤±²³ ­£²  ­£  ¦±¤¤² ³§ ³ ¯´±²´ ­³ ³® 4¤· ² 4 · #®£¤ 3¤¢ȁ ΒΐΑȁΑΏΓǾ ­® ³ ·¤² ¶¨«« ¡¤  ¡ ³¤£ ´­£¤± ³§¨² A¦±¤¤¬¤­³ ¥®±  ­¸ ¤°´¨¯¬¤­³ ®± ¢®­²³±´¢³¨®­ «®¢ ³¤£ ®­ ³§¤ 0±®¯¤±³¸ ¯±¨®± ³® ³§¤ ¤¥¥¤¢³¨µ¤ £ ³¤ ®¥ ³§¨² !¦±¤¤¬¤­³Ǿ ­®± ¶¨«« ³§¤  ¡ ³¤¬¤­³  ¯¯«¸ ³®  ­¸ ¤°´¨¯¬¤­³ ®± ®³§¤± )¬¯±®µ¤¬¤­³²acquiredǾ ¢®­²³±´¢³¤£Ǿ  ­£ ¨­²³ ««¤£  ¥³¤± ³§¤ ¨²²´ ­¢¤ ®¥ ³§¤ #¨³¸ § ² ¨²²´¤£ ¨³² #¤±³¨¥¨¢ ³¤ ®¥ Completion. 4 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 %·§¨¡¨³ 3 and incorporated herein by reference, save and except that, in the event of a conflict between the requirements of %·§¨¡¨³ 3 and this Agreement, this Agreement shall control. 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. .® #®­¥«¨¢³ ®¥ )­³¤±¤²³ 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. #®¬¯«¨ ­¢¤ 0±®µ¨²¨®­² 9.1 #¨³¸Ȍ² 2¨¦§³ ®¥ !¢¢¤²² ³® 2¤¢®±£²: The Owner agrees that the City, its agents and employees, shall have the reasonable right to review 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 5 accumulated depreciation amount. At the City’s request, the Owner will provide actual invoices to support the amounts shown on the Asset Report. To the extent allowed by the Texas Public Information Act, the City shall maintain all Owner records and details as confidential. 9.2 #¨³¸Ȍ² 2¨¦§³² ®¥ !¢¢¤²² ³® 0±®¯¤±³¸Ȁ 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 ensure that the construction of the same and installation of the equipment is in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof, provided that City, its agents and employees follow all applicable safety rules and regulations. After completion of the Improvements, the City shall have the continuing right to inspect the Property during the term of the Agreement for the purpose of ascertaining that the Improvements have remained on the property and that the Facility is in operation. 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. 2¤¯®±³¨­¦ 2¤°´¨±¤¬¤­³² th 10.1 Initial Report: The Owner further agrees that it will, by !¯±¨« ΐΔ ®¥ ³§¤ ¸¤ ± ¥®««®¶¨­¦ ³§¤ #¨³¸Ȍ² ¨²²´ ­¢¤ ®¥ ³§¤ #¤±³¨¥¨¢ ³¤ ®¥ #®¬¯«¤³¨®­ Ȩ9¤ ± ΐ ®¥ ³§¤ !¡ ³¤¬¤­³ 0¤±¨®£ȩ, 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 since the effective date of the Agreement: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property as of January 1, 2024, prior to the addition of the Improvements; (b) Detailed description of the Improvements and the year in which same were completed; (c) A detailed description of any miscellaneous items of capitalized office equipment and the actual cost of such added office equipment; (d) A detailed list of and the actual cost of Improvements; 6 (e) The actual cost of capital Improvements; and, (f) The date of substantial completion of the Improvements as defined in paragraph 3.1 hereof. 10.2 !­­´ « 2¤¯®±³ ®­ #®¬¯«¨ ­¢¤ ¥®± % ¢§ 9¤ ± ®¥ ³§¤ !¡ ³¤¬¤­³ 0¤±¨®£Ȁ In addition to the report required in Paragraph 10.1 hereinabove, Owner further agrees that by !¯±¨« ΐΔ³§ of each year of this Agreement beginning in the first year of the Abatement Period, 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 %·§¨¡¨³ 4 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. 10.4Owner shall submit all compliancereports 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. #¨³¸Ȍ² #¤±³¨¥¨¢ ³¤ ®¥ #®¬¯«¤³¨®­ 11.1Within thirty (30) days of receipt of the Initial Report 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 theImprovementsidentified in the Report and required by the terms of this Agreement have been completed; 7 (c)and, if the required installations have been made, deliver a Certificate of Completion in the forms attached hereto as %·§¨¡¨³ 5 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 provided by Owner in its InitialReport as an identification of Equipment upon which the tax abatement is to be granted. 11.2In 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 InitialReport. 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. !´³§®±¨³¸ ³® #®­³ract 12.1 This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 12th day of June, 2023, authorizing the Mayor to execute the Agreement on behalf of the City. 12.2 This Agreement was entered into by Huhtamaki, Inc. 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, not to be unreasonably withheld, 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, (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, 8 or (3) sent by recognized carrier with shipment tracking number addressed to the designated representative of the respective parties which are designated as follows: OWNER: Huhtamaki, Inc. Attn: Adam Routon 800 W. Center St. Paris, Texas 75460 With a copy to: General Counsel 9201 Packaging Drive De Soto, Kansas 66018 CITY: CITY OF PARIS, TEXAS Attn: City Manager P.O. Box 9037 Paris, TX 75461-9037 Alternatively, said reports may be delivered personally to the City Manager at 135 SE 1st St., Paris, Texas 75460 7¨³§   ¢®¯¸ ³®Ȁ 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. 9 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. 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. 13.8 -!.$!4/29 !.4)-"/9#/44 !.$ /4(%2 02/6)3)/.3ȁ Owner, by executing this agreement, certifies the following: i.Pursuant to Section 2271.002 of the Texas Government Code, Owner certifies that either (i) it meets an exemption criterion under Section 2271.002; or (ii) it does not boycott Israel and will not boycott Israel during the term of the Agreement. Owner acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. ii.Pursuant to SB 13, 87th Texas Legislature, Ownercertifies that either (i) it meets an exemption criterion under SB 13, 87th Texas Legislature; or (ii) it does not boycott energy companies, as defined in Section 1 of SB 13, 87th Texas Legislature, and will not boycott energy companies during the term of the Agreement. Owner acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. iii.Pursuant to SB 19, 87th Texas Legislature, Owner certifies that either (i) it meets an exemption criterion under SB 19, 87th Texas Legislature; or (ii) it does not discriminate against a firearm entity or firearm trade association, as defined in Section 1 of SB 19, 87th Texas Legislature, and will not discriminate against a firearm entity or firearm trade association during the term of the Agreement. Owner acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. iv.Pursuant to Subchapter F, Chapter 2252, Texas Government Code, Owner certifies Owner (1) is not engaged in business with Iran, Sudan, or a foreign terrorist organization. Owner acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date set forth below. WITNESS our hands this __ day of __________________, 2023. THE CITY OF PARIS, TEXAS By:____________________________________________________ Reginald B. Hughes, Mayor 10 ATTEST: ______________________________________________________ Janice Ellis, City Clerk APPROVED AS TO FORM: _______________________________________________________ Stephanie H. Harris, City Attorney HUHTAMAKI, INC. By: ____________________________________________________ Name: Shannon Stites Title: ________________ Date:__________________________________________ ATTEST: _____________________________________________________ Title: 11 LIST OF EXHIBITS: 1. 2020 Designation of Enterprise Zone which includes the Property 2.Tax Abatement Request Application 3.Resolution No. 2022-002; Criteria and Guidelines for Tax Abatement 4. FORMS: Certificates of Compliance 5. FORM: Certificate of Completion 12 Exhibit 1 Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 %8()")4 4 !­­´ « #¤±³¨¥¨¢ ³¤ ®¥ #®¬¯«¨ ­¢¤ȝ.®­-Compliance 9¤ ± ____—20___ Pursuant to the Tax Abatement Agreement (“the Agreement”) Between the City of Paris, Texas And Huhtamaki Packaging, Inc. Dated April 24, 2023 4(% 34!4% /& ______ § #/5.49 /& _______ § ).)4)!, 7(%2% !002/02)!4%Ȁ _______Huhtamaki, Inc. (the “Company”) hereby certifies that: (1) All ad valorem taxes have been paid to City and all other taxing entities. (2) In _______, the Company maintained no fewer than thirty (30) full-time employees to operate the Paris Facility. The total number of full-time employees working at the Facility as of the date of this report is ______. (3) The Company has continuously operated the Property and Improvements described in the Agreement in accordance with the terms thereof. (4) The Company submits herewith and attaches hereto copies of the Employer Reference summary page of its Texas Workforce Commission Quarterly Reports for the Paris Facility for each quarter of ________(year preceding the date of the certification). (6) All other terms and conditions of this Agreement have been complied with. OR: ______Huhtamaki, Inc. 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. _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ VERIFICATION 34!4% /& 4%8!3 § #/5.49 /& ,!-!2 § "%&/2% -%Ǿ the undersigned notary, on this day personally appeared _____________________, the affiant,a person whose identity isknown 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 Certificate of Compliance/Non-Compliance. The facts stated in it are within my personal knowledge and are true and correct, 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 ____________, 20__. ________________________________ Notary Public, State of _______ Exhibit 5 #%24)&)#!4% /& #/-0,%4)/. 34!4% /& 4%8!3 § #/5.49 /& ,!-!2 § #)49 /& 0!2)3 § The City of Paris, Texas has executed and delivered a Tax Abatement Agreement (the “Agreement”) dated August 14, 2023, with HUHTAMAKI, INC., for certain improvements and equipment (collectively, the “Improvements”) to be installed on property located in Paris, Lamar County, Texas, said Improvements described in %·§¨¡¨³ ! 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 installed and used in the calendar year 2023have in fact been completed as providedfor in the Agreementand that the Company has complied with all other terms of the Agreement including those related to employment levels. ./7Ǿ 4(%2%&/2%Ǿ the City of Paris authorizes that the property described in %·§¨¡¨³ ! attached hereto shall receive a tax abatement during each year through the end of the term the Tax Abatement Agreement equal to 100%in years 2025, 2026, and 2027; 75% in years 2028, 2029, and 2030; and 50% in years 2031, 2032, 2033, and 2034, 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, 2023, which is the year in which the Tax Abatement Agreementwas executed, as recited in the Agreement. The tax abatement will extend for a duration of ten(10)years, with the tax abatement beginning January 1, 2025, and ending December 31, 2034. APPROVED this _____ day of _______________, _____. ____________________________________ ____________________, Mayor ATTEST: ____________________________________ Janice Ellis, City Clerk !002/6%$ !3 4/ &/2-Ȁ ____________________________________ Stephanie H. Harris, City Attorney