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2013-024 APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH POTTERS INDUSTRIES, LLCRESOLUTION NO. 2013 -024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH POTTERS INDUSTRIES, LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris has been presented a proposed agreement by and between the City of Paris, Texas and Potters Industries, LLC, providing for a commercial and industrial tax abatement for certain improvements, a copy of which is attached hereto as Exhibit "A ", and incorporated herein by reference hereinafter called "Agreement "; and, WHEREAS, a public hearing was held before the City Council on June 24, 2013, to allow interested persons to speak about the Enterprise Project and Tax Abatement Agreement; and, WHEREAS, upon review and consideration of the Agreement, and all matters attendant and related thereto, the City Council is of the opinion that the terms and conditions thereof meet the Guidelines and Criteria for Tax Abatement and should be approved, and that the Mayor should be authorized to execute it on behalf of the City of Paris, Texas. 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 terms of the Tax Abatement Agreement and the property the subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by the City of Paris by Resolution No. 2012 -072. Section 3. That the terms and conditions of the proposed Agreement attached hereto as Exhibit "A ", having been reviewed by the City Council of the City of Paris and found to be acceptable and in the best interests of the City of Paris and its citizens, be, and the same are hereby, in all things approved. Section 4. That the Mayor is hereby authorized to execute the Agreement and all other documents in connection therewith on behalf of the City of Paris substantially according to the terms and conditions set forth in the Agreement attached hereto as Exhibit "A ". Section 5. That the planned use of the property the subject of the tax abatement will not constitute a hazard to public safety, health, or morals. Section 6. That this approval and execution of the agreement on behalf of the City is not conditioned upon approval and execution of any other tax abatement agreement by any other taxing entity. DULY PASSED AND APPROVED this 24th day of June 2013. ATTEST: l Oice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McII , ty Attorney THE STATE OF TEXAS ) COUNTY OF LAMAR ) TAX ABATEMENT AGREEMENT This AGREEMENT (herein so called) is entered into by and between the CITY OF PARIS, TEXAS, a municipal corporation, situated in Lamar County, Texas, acting by and through its duly authorized officer whose signature appears below (hereinafter called "CITY "), and POTTERS INDUSTRIES, LLC, a Delaware limited liability company ( "OWNER "). WITNESSETH: WHEREAS, OWNER is the owner or lessee of the land described herein; and WHEREAS, OWNER shall own or lease the buildings and manufacturing equipment to be installed within such buildings on the PROPERTY (collectively referred to as the `IMPROVEMENTS ") with respect to which taxes will be abated under this AGREEMENT, and OWNER shall be responsible for paying the ad valorem property taxes assessed against the PROPERTY and the IMPROVEMENTS; and WHEREAS, the City Council of the City of Paris, Texas, did heretofore, on the 13th day of August, 2012, in Resolution No. 2012 -072, elect to be eligible to participate in tax abatement agreements authorized by the Property Redevelopment and Tax abatement Act, Texas Government Code Chapter 312, et seq. (the Act "), 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, under the Act, the designation of an area as an Enterprise Zone also constitutes designation of the area as a Reinvestment Zone (a "REINVESTMENT ZONE ") within which local ad valorem property taxes may be abated; and pursuant to the 2010 Census, the PROPERTY is included within an Enterprise Zone, as is shown in a document published by the Office of the Governor of the State of Texas in Exhibit A, attached hereto and made a part hereof for all purposes; and WHEREAS, the contemplated uses of the IMPROVEMENTS situated on the PROPERTY are consistent with encouraging development of said REINVESTMENT 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 REINVESTMENT ZONE adopted by the CITY and all applicable laws; and WHEREAS, the City Council of the City of Paris did heretofore, on the 13th day of August, 2012 in Resolution No. 2012 -072, pass and adopt guidelines and criteria governing tax abatement agreements to be entered into by the CITY as required by Section 312.002 of the Act, as amended (the "GUIDELINES "); NOW, THEREFORE, 1 The Parties hereto do mutually contract and agree as follows: I. Term 1.1 The effective date of this AGREEMENT is the 24th day of June, 2013, with tax abatement being effective from and after January 1, 2014, and terminating on December 31, 2023 (a term of ten (10) years). II. Area to be Improved 2.1 The IMPROVEMENTS consist of new buildings to be constructed upon the PROPERTY of OWNER and the addition and installation of manufacturing equipment and personal property described in Article III, below, within such buildings, all to be performed by OWNER at the OWNER'S plant in Paris, Lamar County, Texas. The IMPROVEMENTS shall be located upon and within the PROPERTY described in Exhibit B, attached hereto and made a part hereof for all purposes. The buildings being constructed as a portion of the IMPROVEMENTS are located as shown within the drawings also attached hereto as a part of Exhibit B. III. Improvements 3.1 The construction and installation of the IMPROVEMENTS will require engineering, design and construction work for the buildings where the new manufacturing equipment will be located, and the procurement and installation of the manufacturing equipment, utilities, electrical and mechanical facilities. The IMPROVEMENTS are being made to enable the OWNER to add an additional bead manufacturing unit operation to its Paris, Texas, facility. Following construction of the new buildings on the PROPERTY at a cost of $700,000.00, new machinery and equipment will be purchased and installed in the buildings, including a new glass furnace, product processing equipment and packaging equipment, at an additional cost of $17,000,000.00. A total of approximately $17,700,000.00 will be spent by OWNER in making these IMPROVEMENTS to the PROPERTY. All such IMPROVEMENTS will be described in the CITY'S Certificate of Completion prepared after the completion and installation of such IMPROVEMENTS. The description shall be furnished by OWNER to CITY in OWNER'S sworn report described in Section 11. 1, below and attached to CITY'S Certificate of Completion. The description shall also be 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 in the form attached hereto as Exhibit C. OWNER agrees that all such IMPROVEMENTS shall be completed by the end of year five (5) (i.e. 2018) of this AGREEMENT; 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 2 and faithfully pursuing completion of the installation 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 reflected in the Certificate of Completion issued by the CITY, referred to above. IV. Consideration (Improvements) 4.1 The OWNER agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the IMPROVEMENTS. As a good and valuable consideration for 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 OWNER will procure a valid waiver thereof. In further consideration, OWNER shall thereafter, 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, including the IMPROVEMENTS, in the conduct of its normal course of business. V. Consideration (Jobs) 5.1 OWNER represents that it employs full -time employees to work at the PROPERTY. OWNER currently employs twenty -three (23) full -time employees, and OWNER agrees to hire at least ten (10) additional full -time equivalent employees, as needed by OWNER from time to time prior to December 31, 2018. Thus, the number of full -time employees of OWNER will increase by ten (10) full -time equivalent employees to a total of thirty -three (33) full -time equivalent employees by the end of year five (5) (i.e. 2018) of this AGREEMENT. 5.2 OWNER agrees to retain sufficient employment levels to efficiently operate and support its plant operations during the term of this AGREEMENT. VI. Default 6.1 If (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 amount required herein; or (b) OWNER fails to employ the number of full -time equivalent jobs at the PROPERTY by the end of the year, 2018, as stated above; 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 protest or contest of any such ad valorem taxes; or (d) OWNER breaches any of the other material terms, provisions or conditions of this AGREEMENT, then this AGREEMENT shall be in default. If 3 OWNER defaults in its performance of either (a), (b), (c) or (d) above, then 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 AGREEMENT may be modified or terminated by the CITY. Notice shall be in accordance with Section 13.3. 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 to the CITY without the benefit of abatement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted by 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 shall 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 lawful offsets, settlements, deductions, or credits to which OWNER may be entitled. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. VII. Real and 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 property taxes assessed upon the IMPROVEMENTS and otherwise owed to the CITY shall be abated during the Term of this AGREEMENT. Said abatement shall be an amount equal to the percentages of the taxes assessed upon the completed value of the IMPROVEMENTS, as they are completed from year to year during the term of this tax abatement, minus the value of the PROPERTY appraised as of January 1, 2013 (which is the value for the year in which this AGREEMENT is executed), but subject, however, to OWNER'S rights to protest such value and cause it to be adjusted as is provided for under the applicable laws of the State of Texas. This tax abatement shall be implemented and enforced in accordance with all applicable state and local laws and regulations or valid waiver 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. For the purposes of this AGREEMENT, the initial value of the existing property of the OWNER that is not subject to tax abatement is the appraised value of the land, existing buildings and existing tangible personal property located upon the PROPERTY as of January 1, 2013. 7.2 The abatement granted herein shall be subject to and governed by the GUIDELINES, a copy of which is attached hereto as Exhibit D. OWNER shall comply with the requirements of Exhibit D in the performance of this AGREEMENT, save and except that, in the event of a conflict between the requirements of Exhibit D and this AGREEMENT, this AGREEMENT shall control. VIII. No Conflict of Interest 8.1 The .OWNER represents and warrants that neither the PROPERTY nor the 4 IMPROVEMENTS include any real or personal 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. IX. Conditions 9.1 The terms and conditions of this AGREEMENT are binding upon the parties hereto and their successors and assigns. 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 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 written 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 containing an itemized list of assets placed into service from the date of execution of this AGREEMENT to December 31, 2014, and annually thereafter. 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 is 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. 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 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, including applicable safety and security rules. Nothing herein shall be construed as limiting the CITY'S ability to perform inspections or to enter the PROPERTY which is 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 the CITY with a sworn report, written on OWNER'S letterhead and signed by a designated representative of OWNER, which contains the following information: (a) 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 the IMPROVEMENTS; (c) A detailed description of any miscellaneous items of office equipment and the actual cost of such added office equipment; (d) A 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) A detailed list of and the actual cost of added machinery and equipment; (f) The actual cost of capital IMPROVEMENTS; and, (g) The date of substantial completion of the IMPROVEMENTS as defined in Section 3.1 hereof. 11.2 The OWNER further agrees that it will provide 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 on the forms provided by the City. 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 24th day of June, 2013, authorizing the Mayor to execute 6 the AGREEMENT on behalf of the CITY. 12.2 This AGREEMENT was entered into by OWNER 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 may be assigned or transferred by OWNER to an affiliate of OWNER, the purchaser of substantially all of the assets of OWNER, or by operation of law, including merger, but shall not be otherwise assigned or transferred by OWNER without the prior written consent of 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: C$Ayil IN 01 ai POTTERS INDUSTRIES, LLC c/o Allan Kressig, Plant Manager 1601 19t' Street, NW Paris, TX 75460 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O. Box 9037 Paris, TX 75461 -9037 With a copy to: City Clerk, 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 7 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. 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 June, 2013. ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney THE CITY OF PARIS, TEXAS IM A. J. Hashmi, M. D., Mayor OWNER POTTERS INDUSTRIES, LLC. A Delaware Limited Liability Company LE (Name /Office) LIST OF EXHIBITS TO THIS AGREEMENT: A = 2010 Designation of Enterprise Zone which includes OWNER'S PROPERTY B = Legal Description of the PROPERTY and Drawings showing the building(s) and the location of the IMPROVEMENTS within them C = CITY'S Certificate of Completion D = CITY'S Guidelines and Criteria for Tax Abatements 0 EXHIBIT A .1 an � %A U M O Farm b Malket '96 N N U 4+ d � C! U. a � C U. '� •� U. a c '� a "� � 'G9 u. :E '� CL w ,� wr°,i u� 3 o ff 34w .{ Al Y arm CL Okia L v M ar .1 oF3 a�a %A M O N N CC CL .{ Al Y arm Okia .1 oF3 a�a > F- K Z 3 � f X � d < W I L Z W l.i W W d w d W d zw zw zw z I - F- U F X II W W _1 C aw G . 0 V' W - G � U W 1 Z l 1 W z w > F- K Z 3 � f X � d < W I L Z W l.i W W d w d W d zw zw zw z I - F- U F X II W W _1 C aw G . 0 V' W EXHIBIT B 8.247 Acres Lamar County, Texas John Herrington Survey A -436 July 2010 Being 8.247 acres of land situated within the corporate limits of the City of Paris, Lamar County, Texas, said 8.247 acres being part of the John Herrington Survey, Abstract Number 436, and a part of a called 8.496 acre tract of land conveyed from Flex- O -Lite Inc to Potters Industries Inc., on January 24, 2007 and recorded in volume 1851, page 172 of the Official Public Records of said county. The said 8.247 acres being more fully described by metes and bounds as follows: Beginning at a Ih inch capped iron rod set in the North line of Park Street and in the West right -of -way line of Farm To Market Road Number 79 (also known as 19`h Street Northwest), from said rod a %s inch iron rod found at the Southeast comer of the aforementioned called 8.496 acre tract bears East 21.63 feet; Thence West (Reference Bearing), along the South boundary line of the aforementioned Potters Industries tract a distance of 693.49 feet (called 715.00 feet) to a % inch iron rod found at the Southwest corner of said Potters Industries tract, said rod also being the Southeast comer of a called 6.650 acre tract of land conveyed from Thomas E. and Frances L. Westbrooks to TBEI L.P. on October 5, 1998 and recorded in volume 819, page 210 of the Real Property Records of said county; Thence N 00 °01'22" W, along the West boundary line of the aforementioned Potters Industries tract and the East boundary line of the aforementioned TBEI L.P. tract a distance of 501.33 feet (called S 00 100' 00" E 501.50 feet) to a %z inch capped iron rod found; Thence N 67 °56'31" E, a distance of 54.40 feet (called S 68 °00'00" W 54.10 feet) to a % inch capped iron rod set at the most northern Northwest comer of the aforementioned Potters Industries tract, said rod also being in the occupied South line of a railroad spur (no right of way, nor deed information found on railroad spur); Thence S 89 °15'00" E, a distance of 647.78 feet (called N 89 °15'00" W 668.00 feet) to a %2 inch capped iron rod set in the West right of way line of Farm To Market Road Number 79, from said rod a 2 inch diameter iron pipe found at the Northeast corner of the aforementioned called 8.496 acre tract bears S 89 °15'00" E a distance of 20.22 feet; Thence S 00 °48'21" W along the West right of way line of Farm To Market Road Number 79 a distance of 148.10 feet to a '/2 inch capped iron rod set at the beginning of a curve to the Left having a Central Angle of 01 149'05" and a Radius of 11,509.16 feet; Thence along said curve to the Left a distance of 365.23 feet, (chord bearing and distance of S 00 °22' 13" W, 365.21 feet) to the Point of Beginning and containing 8.247 acres of land. I, KEVIN K. WHITLEY, REGISTERED PROFESSIONAL LAND SURVEYOR, #5892, STATE OF TEXAS, HEREBY CERTIFY THE ABOVE IS TAKEN FROM MEASUREMENTS MADE UPON THE GROUND, CONDUCTED BY ME AND COMPLETED ON JULY 14, 2010. OF 7 KE1/IN K. WHITLEY 9 5892 e p tl ►- g � I z f7 z r I Ip N N I � gw I� m a� II�m ti a ZV I I (A4'M 3 .00,OOAO S O T YJ) ,££' 104 M X.10.00 N F SC� iR ` \ a of N 6 Rai f I I ti s Domik MEMO $� >v I IN 11 Q� �o N U H a a � b � Eby IlQ�C (A q) ' 0 � zFlP,�f2._ '00— 1 L -- --- 1g ----f-------- - - - - -- HLOIM AVM- AO -iHOIN Wl 6Z3m;n QdOi.L�WY OL YRV3 - — — — m & _ - N N N N � wn l l t 30Vd 091 3rrt T - NOISSWO!= AVMHOIH 31V1S I�p ' I I J II mt4 ;tuiw n e p tl ►- g � I z f7 z r I Ip N N I � gw I� m a� II�m ti a ZV I I (A4'M 3 .00,OOAO S O T YJ) ,££' 104 M X.10.00 N F SC� iR ` \ a of N 6 Rai f I I ti s Domik MEMO $� >v I IN 11 Q� �o N U H a a EXHIBIT C CERTIFICATE OF COMPLETION STATE OF TEXAS COUNTY OF LAMAR CITY OF PARIS The City of Paris has included the property described in Exhibit A attached hereto into a Reinvestment Zone, and has executed a Tax Abatement Agreement with POTTERS INDUSTRIES, LLC, a Delaware limited liability company (the "company "), for certain improvements and other equipment (the "improvements ") to be installed at the Company's bead manufacturing operation located in Paris, Lamar County, Texas. for certain improvements or repairs. Based on information provided by Company, City believes that the Company has complied with the terms of the Tax Abatement Agreement through the date of this Certificate. The City also believes, based on information provided by the Company, that the Improvements agreed to be built, installed and used have in fact been completed as provided for in the Tax Abatement Agreement. NOW, THEREFORE, the City of Paris authorizes that the property described in Exhibit A attached hereto shall receive a tax abatement during each year of the Tax Abatement Agreement, with tax abatement commencing in the year, 2014, equal to 100% 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 ", 2013, which is the year in which the Tax Abatement Agreement was executed, as recited in the Tax Abatement Agreement. The tax abatement will extend for a duration of ten (10) years, with the tax abatement beginning January 1, 2014, and ending December 31, 2023. APPROVED this day of A.J. Hashmi, M.D., Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney