17-N - Sesaco Amendment OneAGENDA INFORMATION SHEET
PROJECT: A resolution approving and authorizing an Amendment No. One to the Tax Abatement
Agreement between the City of Paris and Sesaco Corporation dated March 12, 2001.
BACKGROUND: On March 12, 2001, the City of Paris authorized a Tax Abatement Agreement with
Sesaco Corporation for the expansion of its existing facilities located in Paris, Texas. In accordance with the
terms of said Agreement, Sesaco was to complete such expansion, costing in excess of $820,400.00, by no
later than July 10, 2001, which is the date provided to the City as the date upon which Sesaco believed its
expansion could be completed. Shortly after signing the Agreement, Sesaco verbally requested the City to
extend its completion deadline. Such verbal request was subsequently followed with a written request
specifying a new completion date, same being October 1, 2001.
DESCRIPTION: The attached resolution would extend the completion deadline for expansion of the existing
Sesaco facilities from July 10, 2001, to October 1, 2001. All other terms of the tax abatement agreement,
including the length of the abatement, same being seven (7) years, will continue in effect as originally
approved.
RECOMMENDED ACTION: Consideration and approval of the resolution and proposed amendment
extending the completion deadline for expansion of the existing Sesaco facilities to October 1, 2001.
STAFF CONTACT: Larry W. Schenk, City Attorney
COST: There is no cost incurred by the City in granting this extension.
SCHEDULE: Granting of this extension will now require Sesaco Corporation to complete its expansion by
no later than October 1, 2001.
COUNCII, DATE: Consider for approval at City Council's Monday, June 11, 2001, regular Council
meeting.
ADDITIONAL MATERIALS: See enclosed draft resolution and proposed Amendment Number One, along
with a copy of the letter from Sesaco Corporation requesting the extension of the deadline to complete its
expansion.
SESACO CORPORATION
700 West Center Street or P.O. Box 998
Paris, Texas 75460
Tel: 903-784-7419, Fax: 903-755-3105
June 5, 2001
Email: Sesaco@1Stamet.com
To Mayar Pfiester and the Members of the City Council of the City of Paris:
Sesaco Corporation wuuld like to request an amendment to Section 3.1 of the Tax Abatement
Agreement, enacted on the 12°i day of March, 2001. The current agreement reads "The
IMPROVEMENTS be substantially completed on or about July 10, 2001..." We
kindly request that the date of completion be extended to October 1, 2001, and that the
agreement be revised to reflect this change.
Please contact me if you have any questions or require further clarification of our revised
renovation schedule.
Thank you for your consideration.
Sincerely,
Sesaco Corporation
~ (M c. /64~vt l~( ('n,~v►~
Tina Langhjari Smith
Corporate Secretary
DRAFT
LISA\RESOLUTIONS\CiJRRENT\Sesaco - Amendment No. 1 Res
June 7, 2001
RESOLUTION NO.
A RESOLUTION OF THE CITY OF PARIS, PARIS, TEXAS, APPROVING
AND AUTHORIZING AMENDMENT NO. ONE TO TAX ABATEMENT
AGREEMENT BETWEEN THE CITY OF PARIS, PARIS, TEXAS, AND
SESACO CORPORATION DATED MARCH 12, 2001; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUB7ECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, in Resolution No. 2001-018, 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 12th day of March,
2001, in Resolution No. 2001-019, pass and adopt a policy on tax abatement incentives; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, pass Ordinance No. 2001-012, establishing Reinvestment Zone No. 9 in the City of Paris for
commercial and industrial tax abatement as authorized by the Property Redevelopment and Tax
Abatement Act, as amended, being V.T.C.A. Tax Code, Chapter 312; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, in Resolution No. 2001-020, authorize the execution of a Tax Abatement Agreement with
Sesaco Corporation, and the terms of said Agreement are in need of revision; and,
WHEREAS, the form of Amendment No. One to Tax Abatement Agreement Between the
City of Paris, Paris, Texas, and Sesaco Corporation Dated March 12, 2001, attached hereto as
Exhibit A, should in all things be approved and the Mayor should be authorized the execute the
same; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the form of Amendment No. One to Tax Abatement Agreement Between
the City of Paris, Paris, Texas, and Sesaco Corporation Dated March 12, 2001, attached hereto as
Exhibit A, be, and the same is hereby, approved.
Section 3. That the Mayor be, and he is hereby, authorized and directed to execute, on behalf
of the City of Paris, said Amendment No. One, under the terms and conditions and in the form
shown in Exhibit A, attached hereto.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this l lth day of June, 2001.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
AMENDMENT NO. ONE TO TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF PARIS, PARIS, TEXAS,
AND SESACO CORPORATION DATED MARCH 12, 2001
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, in Resolution No. 2001-018, 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 12th day of March,
2001, in Resolution No. 2001-019, pass and adopt a policy on tax abatement incentives; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, pass Ordinance No. 2001-012, establishing Reinvestment Zone No. 9 in the City of Paris for
commercial and industrial tax abatement as authorized by the Property Redevelopment and Tax
Abatement Act, as amended, being V.T.C.A. Tax Code, Chapter 312; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, in Resolution No. 2001-020, authorize the execution of a Tax Abatement Agreement with
Sesaco Corporation; and,
WHEREAS, the terms of said Agreement are in need of revision; NOW, THEREFORE,
WITNESSETH
That Section 3.1 of the Tax Abatement Agreement between the City of Paris, Paris, Texas,
and Sesaco Corporation dated March 12, 2001, be amended to read as follows:
"III.
"Improvements
"3.1 The OWNER shall make improvements to the PROPERTY as
follows: Demolish and rebuild the existing 9,180 square foot facility which is a part
of the main building located in Paris, Texas, and install new equipment consisting
of a seed receiver system, a dry cleaning system, and a wet processing system, all of
which said equipment are listed on Exhibit B, attached hereto. Such improvements
will be made upon the PROPERTY herein described and will consist of machinery,
EXHIBIT A
Page 1 of 3
equipment, and utilities installed to process sesame seeds in the existing main
building, all of which will be particularly described in CITY'S Certificate of
Completion prepared after the completion and installation of the improvements and
machinery herein described which shall be furnished to and filed with the Chief
Appraiser of the Lamar County Appraisal District. Said Certificate shall be duly
executed by the Mayor of the City of Paris and attached hereto as Exhibit C. The
improvements described in this paragraph shall be hereinafter referred to as
IMPROVEMENTS. The IMPROVEMENTS will be at a cost equal to or in excess
of $820,400.00, and shall be substantially completed on or about October 1, 2001;
provided, that OWNER shall have such additional time to complete the
INIl'ROVEMENTS 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 defined as the date a Certificate of Occupancy is
issued by the City of Paris."
EXECUTED on this the l lth day of June, 2001.
By:
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
CITY OF PARIS, PARIS, TEXAS
Michael J. Pfiester, Mayor
Page 2 of 3
SESACO CORPORATION
By:
Glen C. Smith, President
ATTEST:
Tina Langham-Smith, Administrator
Page 3 of 3