14 - Huhtamaki Tax Abatement Agreement
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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
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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,
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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.
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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.
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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
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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;
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(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;
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(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,
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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.
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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
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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
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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
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____________________________________
Stephanie H. Harris, City Attorney