Loading...
1998-074-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 17TH DAY OF MAY " RESOLUTION NO. 98-074 WHEREAS, the City Council of the City of Paris did heretofore, on the 17th day of May, 1993, in Resolution No. 93-051, authorize the execution, delivery, and performance of an agreement with Campbell Soup Company, pursuant to the Property Redevelopment and Tax Abatement Act, V.T.C.A., Tax Code Sec. 312.001, et seq. ("Act"), and the Guidelines and Criteria for Designation of Reinvestment Zones and Tax Abatement Agreements ("Guidelines"), to exempt a portion of the value of the property owned by Campbell Soup Company located in Reinvestment Zone No. Four from ad valorem taxation upon and subject to the terms, conditions, and provisions set forth in the Tax Abatement Agreement, dated effective as of April 12, 1993 ("Agreement"); and, WHEREAS, pursuant to the Agreement, the term of the tax abatement granted therein began with the tax year beginning January 1, 1994, and expires on December 31, 1998, subject to the option to extend for an additional two (2) year period expiring on December 31, 2000; and, WHEREAS, Campbell Soup Company is desirous of exercising the option to extend the period of tax abatement under the Agreement to December 31, 2000, and has expressed its intent to assign said Agreement, as the same pertain to the two-piece can manufacturing equipment, upon the sale of said equipment to Silgan Can Company; and, WHEREAS, Section 312.208(a) of the Act and the Guidelines adopted by the City each provide that a tax abatement agreement may be modified by the parties thereto by the same procedure by which the original agreement was approved and executed; and, WHEREAS, the City and Campbell Soup Company now desire to amend the Agreement in accordance with the Act and the Guidelines to provide for extension of the period of tax abatement under the Agreement to December 31, 2000, and to provide for the retention of the one hundred forty-six (146) existing jobs related to or in support of the two-piece can manufacturing operation; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS: 1. That the City Council hereby finds and determines that the terms of the First Amendment to Tax Abatement Agreement for Reinvestment Zone No. Four, the form of which is attached hereto as Exhibit A, meet the criteria for tax abatement as set forth in the Act and in the Guidelines adopted by the City of Paris. 2. That, pursuant to Section 312.208(a) of the Act, the City Council hereby authorizes the execution, delivery, and performance by the City of the First Amendment to Tax Abatement Agreement with Campbell Soup Company in the form attached hereto as Exhibit A. 3. That the Mayor of the City of Paris, Charles H. Neeley, be, and he is hereby, authorized and directed to execute, on behalf of the City of Paris, the First Amendment to Tax Abatement Agreement under the terms and conditions and in the form shown in Exhibit A, attached hereto, and to do or cause to be done all things necessary to effect such Amendment. PASSED AND ADOPTED this 8th day of June, 1998. ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: S;~ Scott P. Foster, City Attorney FIRST AMENDMENT TO TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF PARIS AND CAMPBELL SOUP COMPANY DATED MAY 17,1993 STATE OF TEXAS ) ) COUNTY OF LAMAR ) KNOW ALL MEN BY THESE PRESENTS: That this First Amendment to Tax Abatement Agreement between the City of Paris and Campbell Soup Company dated May 17, 1993, is made this 8th day of June, 1998, by and between the CITY OF PARIS, PARIS, TEXAS, a municipal corporation, acting by and through its Mayor, Charles H. Neeley, duly authorized, hereinafter called CITY, and CAMPBELL SOUP COMPANY, acting by and through its authorized officer whose signature appears below, hereinafter called CAMPBELL. WITNESSETH That CAMPBELL, having fully complied with and met all conditions of the above- described Agreement, having exercised the option to extend said Agreement for two (2) years, and having given notice of its intent to assign said Agreement, as the same pertain to the two-piece can manufacturing equipment, upon the sale of said equipment to Silgan Can Company, does hereby mutually agree with CITY that Section VIII of said Agreement be deleted in its entirety and that Sections I, V, and VII be amended to read as follows: "I. "Term "1.1 The term of this AGREEMENT shall begin on the 17th day of May, 1993, with, as hereinafter provided, tax abatement granted herein beginning with the tax year beginning January 1, 1994, and expiring on December 31,2000." Page 1 of 3 eXHIBIT A "V. "Consideration "Jobs "5.1. Not later than June 1, 1998, CAMPBELL will prevent the loss of one hundred forty-six (146) permanent jobs at the Paris Plant for work to be performed substantially either (a) at the site of the Improvements, or (b) in support of operations performed by others at the site of the IMPROVEMENTS. Such jobs to be filled with priority being given to promote 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, and third from within the County of Lamar, State of 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 effect and any successive contracts or past practices. "5.2. OWNER agrees that, during that portion of the term of the AGREEMENT occurring subsequent to January 1, 1994, ending December 31, 2000, it will not reduce below one hundred forty-six (146) the number of such permanent jobs so retained related to or in support of the two-piece can manufacturing operation." "VII. "Tax Abatement "7.1 It is understood and agreed among the parties that the PROPERTY, also known as Tax Reinvestment Zone Number Four, shall be appraised at market value prior to the construction and installation of the IMPROVEMENTS for the purposes of property tax assessment effective January 1, 1994, and continued at market value without said IMPROVEMENTS until the expiration of this AGREEMENT. The CITY, acting under and pursuant to the said Texas Property Redevelopment and Tax Abatement Act, hereby covenants and agrees to abate: "(a) all CITY real property taxes that would otherwise be payable with respect to the IMPROVEMENTS, and "(b) all CITY personal property taxes that would otherwise be payable with respect to all personal property, save and except inventory and supplies, that is brought onto the PROPERTY described by metes and bounds and depicted on the plat attached hereto as Exhibit "A," as a part of the improvement project herein described, Page 2 of 3 "for a period of seven (7) years, beginning January 1, 1994, and ending December 31,2000." EXECUTED on this the 8th day of June, 1998. CITY OF PARIS, PARIS, TEXAS By: Charles H. Neeley, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: Scott P. Foster, City Attorney CAMPBELL SOUP COMPANY By: Name: Title: ATTEST: Secretary Page 3 of 3