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HomeMy WebLinkAboutRES 22-193RESOLUTION NO.22-193 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the Interim City Manager be and he is hereby authorized to execute an Amendment to the Tax Abatement Agreement between the City of Beaumont, Texas and Suez WTS USA, Inc. to adjust the starting date of the tax abatements to begin January 1, 2023 and continue to December 31, 2027 instead of January 1, 2022 to December 31, 2026 due to supply chain issues which have prevented completion of the project, necessitating a delay in the start date for said abatement. The Amended Tax Abatement Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of August, 2022. I !�� - Mayor Robin Mouton - AMENDED TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF BEAUMONT AND SUEZ WTS USA, INC. FOR PROPERTY LOCATED IN THE SUE,Z WTS USA, INC.-PROJECT CLEAR REINVESTMENT ZONE 1. The City of Beaumont (hereinafter referred to as the "City") and Suez WTS USA, Inc, (hereinafter referred to as "Suez"), (together, the "Parties") entered into a Tax Abatement Agreement ("Agreement") on December 28, 2020 (attached hereto as Exhibit "I") with respect to the abatement of certain ad valorem property taxes oil a new plant facility (the "Project") to be constructed by Suez, in the Suez WTS USA, Inc. -Project Clear Reinvestment Zone which was originally designated by the City under Ordinance No. 20-059 dated October 20, 2020. 2. Suez WTS USA, Inc, is the owner of record in the Jefferson County real property records of the real property on which the Project is being constructed, and the owner of the improvements to the real property that constitute the Project, Suez has requested that the City modify the Agreement to delay the beginning date of tax abatement percentages agreed to. 3. It was and continues to be the intent of the Parties that all of the rights, duties and obligations granted or imposed by the Agreement with respect to the tax abatement reside with and are the property of Suez. 4. The Parties acknowledge that circumstances beyond the control of Suez, specifically difficulties occasioned by COVID-19, have delayed the commencement of construction and Suez will suffer the loss of the intended benefits of the original abatement agreements and, for these reasons, the parties agree that the Agreement for this Project shall be amended with respect to those identified oil the following page. 5. The Parties acknowledge and agree that the terms and conditions of the Agreement shall remain in full force and effect unless amended by this or future written agreements. Page 1 of 2 EXHIBIT "A" The terin of the abatement granted in the abatement schedule on section IV, 4,, of page 4 of the Agreement, and on Exhibit D of page 15 of the Agreement, shall be amended as follows; and the tax abatement shall be effective on the January Istvaluation date immediately following the date of execution of this Agreement. Year Abated Percentage of Value Abated 2021 0% 2022 0% 2023 1000/0 2024 100% 2025 90% 2026 80% 2027 70% Signed this day of . 2022, City of Beaumont (Signature) (Printed Name and Title) Suez WTS USA, Inc, �i1� __.: ��- VP - Tax (Printed Name and Title) Page 2 of 2 Exhibit 1 "TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN SUEZ WTS USA, INC,-PROJECT CLEAR REINVESTMENT ZONE" TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN SUEZ WTS USA, INC.-PROJECT CLEAR REINVESTMENT ZONE This Tax Abatement Agreement (hereinafter referred to as "the Agreement") Is made, entered, and executed between The City of Beaumont, Texas (hereinafter referred to as the "City"), and Suez WTS USA, Inc., (hereinafter referred to as "Suez"}, the owner of taxable property in Beaumont, Jefferson County, Texas, located In the Suez WTS USA, Inc. -Project Cleat - Reinvestment Zone as described below ("Suez WTS USA, Inc, -Project Cleat - Reinvestment Zone"). I, AUTHORIZATION This Agreement is arithorized by the Texas Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312, V,T.C,A,, as amended, and by authorization of the City following the designation of the Suez WTS USA, inc,- Project Clear Reinvestment Zone. II. DEFINITIONS 9. As used in this Agreement, the following terms shall have the meanings set forth below: a. The "2020 Certified Appraised Value" means the January 1, 2020 value of the property within the Reinvestment Zone, as certified by the Jefferson County Appraisal District as of that date, and described in Paragraph 3 and Exhibit B. b, "Improvements" means the buildings or portions thereof and other improvements, including fixed machinery, equipment and process units, used for commeroial or Industrial purposes that are constructed by Suez on the properly after December 31, 2020, C. "Construction Phase" means a material and substantial improvement of the properly which represents a separate and distinct construction operation Undertaken foi• the purpose of constructing the Improvements. The period of Construction Phase ends when commercial operation of the New Facility, commences as defined by the completed Installation of constructed Eligible Property that serves the purpose for which It is designed. d. batement" means the full or partial exemption from ad valorem taxes of certain property In a Reinvestment Zone designated for economic development purposes. e, "Eligible Property" means the buildings, structures, fixed machinery, equipment and process units, construction In progress and Improvements necessary to the operation and adminift'ation of the New Facility. f, "New Eligible Pro eat " means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property Is set forth in the Application for Tax Abatement originally filed by Suez, within the City of Beaumont, Texas ("the Application"), which Is Incorporated herein by reference and made a part hereof. During the Construction Phase of the New Eligible Properly, Suez may make such change orders to the New Eligible Property as are reasonably necessary to accomplish Its Intended use. g "Ineligible-__ _Property" means land, Inventories, supplies, tools, furnishings, and other forms of movable personal property, including but not Ilmited to, vehicles, vessels, aircraft, housing, hotel accommodations, deferred maintenance Investments, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion, any improvements Including those to produce, store, or distribute natural gas, fluids or gases, which are not necessary to the operation of the New Facility, and property that has an economic life of less than ten (10) years. h. "Affiliates" of any specified person or entity means any other person or entity which, directly or indirectly, through one or more Intermediaries, controls, or Is controlled by, or Is under direct or Indirect common 2 control with such specified person or entity. For purposes of this definition, "control" when used with respect to any person or entity means (1) the ownership, directly or indirectly, or fifty percent (50%) or more of the voting securities of such person or entity, or (ii) the right to direct the management or operations of such person or entity, directly or Indirectly, whether through ownership (directly or Indirectly) of securities, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 2. The Tax Abatement Policy for granting tax abatements in a reinvestment zone created In Beaumont, Jefferson County, Texas, which was adopted via Resolution No. 20-181 by the City Council of the City of Beaumont September 8, 2020, Is incorporated herein by reference, together with any applicable amendments. All definitions set forth therein are applicable to this Agreement. III, SUBJECT PROPERTY 3. The Reinvestment Zone is an area within Beaumont, Jefferson County, Texas, comprising approximately 30.10, more or less. The Suez WTS USA, Inc. - Project Cleat' Reinvestment zone was designated by the City under Ordinance No. 20.059 dated October 20, 2020, a copy of which Is -attached hereto as Exhibit C and is hereby Incorporated, It Is understood and agreed that the Suez WTS USA, Inc. ­ Project Clear Reinvestment Zone boundary Is subject to revision based upon the final con5t1'u0tio11 plan for the New Facility and the City agrees to take the steps necessary to amend the Reinvestment Zone boundary upon request by Suez. The 2020 Certified Appraised Value Is: Land Only $389,787 Improvements $18,283,004 Personal Property $8,647,720 (includes Inventory) The 2020 Certified Appralsed Value is subject to change based upon final certification of the values by Jefferson County Appraisal District. Upon 3 certification, by consent of the parties, the 2020 Certified Appraised Value will be attached to Exhibit B. IV. VALUE AND TERM OF AGREEMENT 4. This tax abatement shall be effective on the January 'ist valuation date Immediately following the date of execution of this Agreement. In each year that this Agreement is In effect, the amount of abatement shall be an amount equal to the percentage indicates! below. The appraised value, as defined In the Property Tax Code, of New Eligible Properties shall be abated in accordance with the following scale which Is also found In Exhibit D; Year Abated Percentage of Value Abated 2021 0% 2022 100% 2023 100% 2024 90% 2025 80% 2026 y0% V. TAXABILITY 5. During the perlod that this tax abatement Is effective (" abatement period"), 1. The value of Ineligible Property shall be fully taxable; 2. The appraised value, as defined in the Property Tax Code, of New Eligible Property shall be abated as set forth above under the section entitled "VALUE AND TERM OF AGREEMENT." VI. CONTEMPLATED IMPROVEMENTS G. As set forth in the Application, which Is incorporated herein for all pLn'poses. Suez represents that it will modernize the Beaumont Facility, including modernizing process, capacity, rellabllily, Infrastructure and safety updates. The approximate cost'of this investment is $40,000,000. During the Construction Phase, Suez may matte such change orders to the project as are reasonably necessary. All Improvements shall be completed In accordance with the 4 Appiicatlon and all applicable laws, ordinances, rules, or regulations, Suez agrees to make bidding information available to qualified local contractors, vendors, manufacturers and labor and to conduct pre-bld meetings from time to time with potential local bidders and suppliers of services and materials for the project. VII. EVENTS OF DEFAULT 7, During the abatement period covered by this Agreement, the City may declare a default hereunder by Suez if Suez (1) fails to commence construction of the New Facility within one (1) year from the date this Agreement Is executed or (11) falls to construct the New Facility or (ill) falls to cornply with any of the material terms of this Agreement, or (Iv) if any representation made by Suez In this Agreement is false or misleading In any material respect. 81 if the City declares that Suez Is in default of this Agreement, the City shall notify Suez in writing, if such default is not cured within sixty (60) days from the date of such notice ("Cure Period"), then this Agreement may be terminated. In the case of a default for causes beyond Suez's reasonable control which cannot with due diligence be cured within the Cure Period, the Cure Period shall be deemed extended If Suez (I) shall notify the City of Suez's intention to Institute steps reasonably necessary to cure such default, (11) shall proceed to cure such default, and (11I) shall submit a proposed schedule for the completion of the New Facility, Including the estimated date for completion of the New Facility, a reasonable explanation concerning the reason for the delay, and a reasonable estimate of the overall percent of the New Facility that Is completed as of the date of such notice. 9. In the event Suez (1) allows its ad valorem taxes on the New Facility to become delinquent or falls to timely and properly follow the legal procedures for the protest and appeal of the ad valorem taxes on the New Facility or (11) defaults under this Agreement and fails to cure, this Agreement may then be terminated. 5 In the event of termination of this Agreement pursuant to the provisions of this paragraph, all taxes previously abated by virtue of this Agreement will be recaptured and paid within sixty (60) days of the termination, together with penalties and interest as required by the Texas Property Tax Code. 10, In the event the New Facility is completed and begins commercial operations, but subsequently discontinues operations for any reason excepting fire, explosion, or other• casualty, accident, or natural disaster or governmental mandate, for a period of one (1) year during the abatement period, then this Agreement shall terminate. In the event of termination pursuant to the provisions of this paragraph, the abatement of the taxes for the calendar year during which the New Facility no longer operates shall terminate, but there shall be no recapture of prior years' taxes abated by this Agreement. The taxes otherwise abated shall be paid to the City prior to the delinquency date for such year. In no event shall Suez be required to pay such taxes within less than sixty (60) days of the termination. Vlll, ADMINISTRATION 11, This Agreement shall be administered on behalf of the City by its City Manager, Upon completion of the New Facility, the City Manager shall annually evaluate the New Facility to ensure compliance with this Agreement. 12; The Chief Appraiser of the Jefferson County Appraisal District shall annually determine (1) the taxable value pursuant to the terms of this abatement of the real and personal properly comprising the Suez WTS USA, Inc. -Project Clear Reinvestment Zone and (11) the full taxable value without abatement of the real and personal property comprising the Suez WTS USA, Inca -Project Clear Reinvestment Zone. The Chief Appraiser shall record both the abatement taxable value and the full taxable value In the appraisal records. The full taxable value listed in the appraisal records shall be used to compute any recapture. Each year Suez shall furnish the Chief Appraiser with the Information required by Chapter 22, Tax Code, V.T.C.A. Such Information shall also be provided to the City In preparation of Its annual evaluation for compliance with this Agreement. 13, If after notice of default and failure to cure, the City terminates this Agreement, it shall provide Suez written notice of such termination. In the event of termination, Suez may file suit In the Jefferson County District Court appealing termination within ninety (90) days after recelpt from the City of written notice of termination. if an appeal Is filed, Suez shail remit to the City within sixty (60) days after receipt of the notice of termination, any recaptured taxes as may be payable during the pendency of the litigation under Section 42.08, Tax Code, V.T.C,A. If the final determination of the appeal Increases Suez tax liability, Suez shall pay the additional tax to the City pursuant to Section 42.42, Tax Code, V,T.C.A. If the final determination of the -appeal decreases Suez tax liability, the City shall refund to Suez the difference between the amount of tax paid and the amount of tax for which Suez Is liable together with interest pursuant to Section 42.43, Tax Code, V.T.C.A. W. ASSIGNMENT 14. Suez may assign this Agreement to an Affiliate without the written consent of tine City, provided that Suez shall provide written notice. of such assignment to the City. Except as provided In the Immediately preceding sentence, Suez may assign this Agreement with the written consent of the City, which consent shall not be unreasonably withheld, delayed or conditioned, Any assignment shall provide that the assignee shall Irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out In this Agreement. No assignment shall be approved If Suez or the asslgnee Is delinquent In ad valorem taxes due the City, H. NOTICE 16. Any notice requited to be given under the provisions of this Agreement shall be In writing and shall be served when It Is deposited, enclosed In a 7 wrapper with the postage prepaid thereon, and by registered or certified mail, return recelpt requested, in a United States Post Office, addressed to the City or Suez. if mailed, any notice shall be deemed to be received three (3) days after the date of deposit In the United States Mail. Unless otherwise provided In this Agreement, all notices shall be delivered to the following addresses: To Suez: OWNER: Mr. Joseph J. Devine Vice -President, Taxes 4636 Somerton Road Trevose, PA 19053 With a copy to: Mr, Steve Quataert Managing Partner — Affinity P,O. Box 51049 Fort Myers, FL 33994 To the City: City of Beaumont Kyle Hayes City Manager 801 Main Beaumont, TX 77701 With a dopy to: Tyrone Cooper City Attorney 801 Main Beaumont, TX 77701 Chris Boone Director of Planning & Community Development 801 Main Beaumont, TX 77701 8 Elther party may designate a different address by giving the other party ton (10) clays written notice. )(I. AUTMORITV 16. Each of the parties hereto represents and warrants to the other party that (1) It has all requisite power and authority to execute and deliver, to perform its obligations under and to consummate the transactions contemplated by this Agreement and (11) the execution and delivery of this Agreement, the performance of its obligations under and the consummation by each party of the transactions contemplated by this Agreement have been duly authorized by all reggislte corporate authority on the part of Suez and by all requisite governmental authority on the part of the City and (Ili) upon execution and delivery of this Agreement, this Agreement will constitute valid and binding legal obligations of such party. )(11, DATE 17, This Agreement may be executed In counterparts and the effective date of the Agreement shall be the date the City executes this Agreement, so authorizing, on the date of the countersignature hereto by the Manager of the 40 City of Beaumont on this o day of. beumbw—, 2020. 9 )(tll. MISCELLANEOUS 13. in the event any section, subsection, paragraph, sentence, phrase or word herein Is held Invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as If the parties Intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 19. Tile City agrees to record certified copy of this Agreement In the Deed Records of Jefferson County, Texas. 20, This Agreement shall be construed under the laws of the State of Texas. Venue.for any action Under this Agreement shah be the State District Court of Jefferson County, Texas. 21. This Agreement shall be subject to change, modification or, except In the event of default which has not been cured. as provided herein, termination, only with the. mutual written consent of the City and Suez. 22, SEVERABILITY In the event any provision of this AGREEMENT is illegal, Invalid, or unenforceable under present or future laws, then, and in that event, it Is the Intention of the Parties hereto that the remainder of this AGREEMENT shah not be affected thereby, and it is also the Intention of the Pgrtlos to this AGREEMENT that in lieu of each clause or provision that Is found.to be illegal, invalid, or unenforceable, a provision be added to this AGREEMENT which is legal, valid, and enforceable and is as sirnilar In terms as possible to the provision found to be illegal, Invalid or unenforceable, 23. This complete Agreement has been executed by the parties In multiple originals, each having full force and effect. E W Suez UUTS USA, Inc. (Sig ature) Mr. Joseph J. Devine Vice President, Taxes /2,Z; 3 (Date City of Beaumont nature) h er ited Name and Title) (Signature) Kyle Hayes City Manager (Date) Excouted ill (IlllliiCate thiS fllC? day of , 2020. )f1XH1(i13IT A "Description of Project and OWiV)<R Property" The proposed project is to modernize (lie Reauruont facility, including modernizing process, capacity, reliability, infrastructure and safety updates. The iitcility would be constructed on the OWNERS Imid, located within the City of Braun►ont's Municipal Boundaries and within the boundaries of the Suez WTS USA, inc.-Project Clear Reinvestment Zone. 12 Et XI-il;BIT R °Base YcaY Property" The reinvestment Colic Contains existing improvements, The base year taxable valuo as certified will be attached, by consent of the partics, wholl Sallie is Calculated and adopted by the Jefferson County Appraisal District, 13 EXHIBIT C — "Retnvestuicat Zon&$ 14 ORDINANCE NO. 20.,059 ENTITLED AN ORDINANCE DESIGNATING AN AREA AS THE SUEZ WTS USA, INC, REINVESTMENT ZONE PURSUANT 'r0 THE TEXAS REDEVELOPMEN'r AND TAX ABATEMENT ACT (TEXAS TAX CODE, CHAPTER 312); PROVIDING TAX INCENTIVES; PROVIDING FOR, SEVERABILITY; AND PROVIDING FOR REPEAL. WHEREAS, the City of Beaumont endeavors to create the proper economic and social environment to IndGIco the investment of private resources In produCWO business enterprises located in areas of the City; -and, WHEREAS, SueZ WTS USA, Inc, Is seeming incentives for an Investment to upgrade its facility located oil College Street just west of the Municipal Airport; and, WHERE AS, It is necessary to establish a Reinvestment Zone for the purpose of commercial and Industrial tax abatement before Suez WTS USA, Inc. Is to be considered for incentives; and, WHEREAS, It Is found to be feasible and practical and would be a benefit to the land to be Included in the zone and to the City of Beaumont after the expiration of any agreement entered Into pursuant to the Property Redevelopment and Tax Abatement Act; and, WHEREAS, to further this purpose, It Is In the best Interest of the City of Beaumont to designate the area described in Exhibit "A" and shown on Exhibit "B`° as the Suez WTS USA, Inc. Reinvestment Zone pursuant to the Texas Redevelopment and Tax Abatement Act (Texas Tax Code, Chapter 312); and, WHEREAS, the zone Is eligible for Commercial -Industrial tax abatement; and, WHEREAS, the area being designated is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major Investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City of Beaumont; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL. OFTHE CITY OF BEAUMONT: Section . That the statements and findings set out in the preamble to this ordinance are hereby, In all thing's, approved and adopted. Section 2. That the City Council hereby designates the area described in in Exhibit A and shown on Exhibit "B," attached hereto and incorporated herein for all purposes, as the Suez WTS USA, Inc, Reinvestment Zone (herein referred to as the "Zone"). Section 3. That the City Council finds that the zone meets the criteria contained in the Texas Redevelopment and Tax Abatement Act (Texas Tax Code, Chapter 312). Section 4. That the City Council finds that the designation of the reinvestment zone would contribute 'to retention or expansion of primary employment In the area and/or would contribute. to the attraction of major Investments that would be a benefit to the property and would contribute to the economic development of the municipality. Section 6. That the City Council may provide certain tax Incentives applicable to business enterprises In the Zone, which are not applicable throughout the city, as allowed for In ,the Act. Section 6. That the City Council has established certain guidelines and criteria governing tax abatement agreements and Is therefore eligible to participate in tax abatement. Section 7. That a public hearing to consider this ordinance was held by the City Council on October 20, 2020. Section 8: That" this ordinance shall tale effect from and rafter its passage as the law and charter provide. Section 9. That If any section, subsection, sentence, clause, or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such Invalidity shall not affect the remaining - portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 10. That all ordinances or parts of ordinances In conflict herewith are repealed to the extent of the conflict only, The meeting at which this ordinance was approved was in all things conducted In strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 509. OASSED 13Y TIME CITY COUNglL of the City of Beaumont this the 20th day of Octol)ej-, 2020, �< too ayor Beck Ames 4D 0 DESCRIPTION OF APPROXIMATELY 30-10 AC, / 1,311,156 SQ. C-T. A parcel contalning approximately 31,10 AC. / 1,311,1.56 sq. ft. of land, Beginning at it southwest corner of the City Limits to Beau mont, 'rexas at the intersection of the most westerly border of the City and the north right-of-way line of College Street, also known as U,S. Highway 90. Also being the southwest corner of Tract 16, A. Savery Survey, Abstract 46 n 2.559 Ac. Tract; Thence, In a northerly direction along the west line of the City limits of Beaumont and the said 2..559 Ac. Tract, a distance of approximately 899 ft. to the northwest corner of said called 2.559 Ac, 'Tract and the corner of the herein described Tract. Said point being In the City I.Imit line; Thence, in an easterly direction along the north line of said 2.559 Ac. Tract approximately 125 ft. to a point, said point being the northeast corner of the said 5,559 Ac, Tract and the northwest corner of Tract 93, A. Savery Survey, Abstract 46, an 18.51 Ac, Tract; Thence, continuing In an easterly dlrectlon along the north line of said 18.51 Ac, Tract approximately 1,063 ft. to the northeast corner of said 18.51 Ac, Tract and the northwest corner of Tract 92, S, Savery Survey, Abstract 46, a 9.031 Ac. Tract; Thence, continuing in an easterly direction along the north lire of said 9,031 Ac, Tract approximately 531 ft, to the northeast corner of said 9.031 Ac. Tract; Thence, in a south southeasterly direction along the east line of said 9,031 Ac. Tract approximately 639 ft. to the southeast corner of said 9.031 Ac, Tract, Said point being located in the north right-of-way (R.o.W.) line of U,S. Highway 90 (width varies) and the city Limit line; Thence, in an west southwesterly direction along the south line of said 9,031 Ac. Tract, the north 11.0.W, line of U.S. Highway 90 and the city Llmlt line approximately 841 ft. to the southwest corner of said 9.031. Ac, Tract and the southeast corner of the previously mentioned 18.51 Ac. Tract; Thence, rontirtulrtg In a west southwesterly direction along the south line of said 18.50 Ac, Tract, the north R.O.W. line of U,S. Highway 90 and the City Limit line approximately 870 ft. to the southwest corner of said 18.51 Ac. Tract and the southeast corner of the previously mentioned 2.559 Ac, Tract; Thence, continuing In a west southwesterly direction along tloe south line of said 2,559 Ac, Tract, the north R.U,W, line of U,S. Highway 90 and the City Limit line approximately 127 ft, to a corner, Said corner being the southwest corner of said 2.559 Ac. Tract, the southwest cornier of the -City limits to Beaumont, Texas and the Point of Beginning and containing approximately 31.10 AC, / 1,311,156 sq, ft, of land. PROJECT CLEAR Legal Description Summary; Ownor Goo MmIln pm-nnl Irinnflllnnlln1e I anal tt�anr6,�Fn„ SUEZ WTS 30004E-000- IJSA 132205 000300.00000.4 A SAVERY ABS-46 TR 02 0.034 AC 0,0310 SUEZ WTS 300040.000- A SAVERY ABS 46 -fR 0318,51AC USA 132990 000310.00000-3 NF602600.000010 18.610 SUEZ WTS 300046.000- USA 386438 001260.00000.0 1 A SAVERY AXIS 46 TR 10 2,659AC 2,6590 Total Acroago 30,100 EXHIBIT D -- "Abatement Scheffille" "Tax Abatement 8cliedide" Year Abated l'ercehtage of Value Abated 2021 0% 2022 00% 2023 'l00% 2024 90% 2025 80% 2026 70% K, EXHIBIT G — "City of Henumont Abatement Policy" It is understood and agreed that all abatmuent agvemouts granted herein shall conform to this abatement policy and to the Texas Tax Code. 16 AMENDED TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF BEAUMONT AND SUEZ WTS USA, INC. FOR PROPERTY LOCATED IN THE SUEZ WTS USA, INC.-PROJECT CLEAR REINVESTMENT ZONE 1. The City of Beaumont (hereinafter referred to as the "City") and Suez WTS USA, Inc. (hereinafter referred to as "Suez"), (together, the "Parties") entered into a Tax Abatement Agreement ("Agreement") on December 28, 2020 (attached hereto as Exhibit "1") with respect to the abatement of certain ad valorem property taxes on a new plant facility (the "Project") to be constructed by Suez, in the Suez WTS USA, Inc. -Project Clear Reinvestment Zone which was originally designated by the City under Ordinance No. 20-059 dated October 20, 2020. 2. Suez WTS USA, Inc. is the owner of record in the Jefferson County real property records of the real property on which the Project is being constructed, and the owner of the improvements to the real property that constitute the Project. Suez has requested that the City modify the Agreement to delay the beginning date of tax abatement percentages agreed to. 3. It was and continues to be the intent of the Parties that all of the rights, duties and obligations granted or imposed by the Agreement with respect to the tax abatement reside with and are the property of Suez. 4. The Parties acknowledge that circumstances beyond the control of Suez, specifically difficulties occasioned by COVID-19, have delayed the commencement of construction and Suez will suffer the loss of the intended benefits of the original abatement agreements and, for these reasons, the parties agree that the Agreement for this Project shall be amended with respect to those identified on the following page. S. The Parties acknowledge and agree that the terms and conditions of the Agreement shall remain in full force and effect unless amended by this or future written agreements. Page 1 of 2 The term of the abatement granted in the abatement schedule on section IV, 4., of page 4 of the Agreement, and on Exhibit D of page 1S of the Agreement, shall be amended as follows; and the tax abatement shall be effective on the January 1st valuation date immediately following the date of execution of this Agreement. Year Abated Percentage of Value Abated 2021 0% 2022 0% 2023 100% 2024 100% 2025 90% 2026 80% 2027 70% Signed this 15 day of AUe-,V5T , 2022. City of Beaumont 6:�:� /'�� (Signature) (Printed Name and Title) Suez WTS USA, Inc. VP - Tax (Printed Name and Title) Page 2 of 2 Exhibit 1 "TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN SUEZ WTS USA, INC.-PROJECT CLEAR REINVESTMENT ZONE" TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN SUEZ WTS USA, INC.-PROJECT CLEAR REINVESTMENT ZONE This Tax Abatement Agreement (hereinafter referred to as "the Agreement") is made, entered, and executed between The City of Beaumont, Texas (hereinafter referred to as the "City"), and Suez WTS USA, Inc., (hereinafter referred to as "Suez"), the owner of taxable property in Beaumont, Jefferson County, Texas, located in the Suez WTS USA, Inc. -Project Clear Reinvestment Zone as described below ("Suez WTS USA, Inc. -Project Clear Reinvestment Zone"). I. AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312, V.T.C.A., as amended, and by authorization of the City following the designation of the Suez WTS USA, Inc. - Project Clear Reinvestment Zone. II. DEFINITIONS 1. As used in this Agreement, the following terms shall have the meanings set forth below: a. The "2020 Certified Appraised Value" means the January 1, 2020 value of the property within the Reinvestment Zone, as certified by the Jefferson County Appraisal District as of that date, and described in Paragraph 3 and Exhibit B. b. "Improvements" means the buildings or portions thereof and other improvements, including fixed machinery, equipment and process units, used for commercial or industrial purposes that are constructed by Suez on the property after .December 31, 2020. C. "Construction Phase" means a material and substantial improvement of the property which represents a separate and distinct construction operation undertaken for the purpose of constructing the Improvements. The period of Construction Phase ends when commercial operation of the New Facility, commences as defined by the completed installation of constructed Eligible Property that serves the purpose for which it is designed. d. "Abatement" means the full or partial exemption from ad valorem taxes of certain property in a Reinvestment Zone designated for economic development purposes. e. "Eligible Property" means the buildings, structures, fixed machinery, equipment and process units, construction in progress and Improvements necessary to the operation and administration of the New Facility. f. "New Eligible Property" means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property is set forth in the Application for Tax Abatement originally fled by Suez, within the City of Beaumont, Texas ("the Application"), which is incorporated herein by reference and made a part hereof. During the Construction Phase of the New Eligible Property, Suez may make such change orders to the New Eligible Property as are reasonably necessary to accomplish its intended use. g. `Ineligible Property" .means land, inventories, supplies, tools, furnishings, and other forms of movable personal property, including but not limited to, vehicles, vessels, aircraft, housing, hotel accommodations, deferred maintenance investments, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion, any improvements including those to produce, store, or distribute natural gas, fluids or gases, which are not necessary to the operation of the New Facility, and property that has an economic life of less than ten (10) years. h. "Affiliates" of any specified person or entity means any other person or entity which, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under direct or indirect common 2 control with such specified person or entity. For purposes of this definition, "control' when used with respect to any person or entity means (i) the ownership, directly or indirectly, or fifty percent (50%) or more of the voting securities of such person or entity, or (ii) the right to direct the management or operations of such person or entity, directly or indirectly, whether through ownership (directly or indirectly) of securities, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 2. The Tax Abatement Policy for granting tax abatements in a reinvestment zone created in Beaumont, Jefferson County, Texas, which was adopted via Resolution No. 20-181 by the City Council of the City of Beaumont September 8, 2020, is incorporated herein by reference, together with any applicable amendments. All definitions set forth therein are applicable to this Agreement. III. SUBJECT PROPER 3. The Reinvestment Zone is an area within Beaumont, Jefferson County, Texas, comprising approximately 30.10, more or less. The Suez WTS USA, Inc. - Project Clear Reinvestment Zone was designated by the City under Ordinance No. 20-059 dated October 20, 2020, a copy of which is -attached hereto as Exhibit C and is.. hereby incorporated. It is understood and agreed that the Suez WTS USA, Inc. -Project Clear Reinvestment Zone boundary is subject to revision based upon the final construction plan for the New Facility and the City agrees to take the steps necessary to amend the Reinvestment Zone boundary upon request by Suez. The 2020 Certified Appraised Value is: Land Only $389,787 Improvements $18,283,004 Personal Property $8,547,720 (includes Inventory) The 2020 Certified Appraised Value is subject to change based upon final certification of the values by Jefferson County Appraisal District. Upon 3 certification, by consent of the parties, the 2020 Certified Appraised Value will be attached to Exhibit B. IV. VALUE AND TERM OF AGREEMENT 4. This tax abatement shall be effective on the January 1 st valuation date immediately following the date of execution of this Agreement. In each year that this Agreement is in effect, the amount of abatement shall be an amount equal to the percentage indicated below. The appraised value, as defined in the Property Tax Code, of New Eligible Properties shall be abated in accordance with the following scale which is also found in Exhibit D: Year Abated Percentage of Value Abated 2021 0% 2022 100% 2023 100% 2024 90% 2025 80% 2026 70% V. TAXABILITY 5. During the period that this tax abatement is effective ("abatement period"): I . The value of Ineligible Property shall be fully taxable; 2. The appraised value, as defined in the Property Tax Code, of New Eligible Property shall be abated as set forth above under the section entitled "VALUE AND TERM OF AGREEMENT." VI. CONTEMPLATED IMPROVEMENTS 6. As set forth in the Application, which is incorporated herein for all purposes, Suez represents that it will modernize the Beaumont facility, including modernizing process, capacity, reliability, infrastructure and safety updates. The approximate cost'of this investment is $40,000,000. During the Construction Phase, Suez may make such change orders to the project as are reasonably necessary. All Improvements shall be completed in accordance with the l:t Application and' all applicable laws, ordinances, rules, or regulations. Suez agrees to make bidding information available to qualified local contractors, vendors, manufacturers and labor and to conduct pre -bid meetings from time to time with potential local bidders and suppliers of services and materials for the project. VII. EVENTS OF DEFAULT 7. During the abatement period covered by this Agreement, the City may declare a default hereunder by Suez if Suez (i) fails to commence construction of the New Facility within one (1) year from the date this Agreement is executed or (ii) fails to construct the New Facility or (iii) fails to comply with any of the material terms of this Agreement, or (iv) if any representation made by Suez in this Agreement is false or misleading in any material respect. 8. If the City declares that Suez is in default of this Agreement, the City shall notify Suez in writing. If such default is not cured within sixty (60) days from the date of such notice ("Cure Period"), then this Agreement may be terminated. In the case of a default for causes beyond Suez's reasonable control which cannot with due diligence be cured within the Cure Period, the Cure Period shall be deemed extended if Suez (i) shall notify the City of Suez's intention to institute steps reasonably necessary to cure such default, (ii) shall proceed to cure such default, and (iii) shall submit a proposed schedule for the completion of the New Facility, including the estimated date for completion of the New Facility, a reasonable explanation concerning the reason for the delay, and a reasonable estimate of the overall percent of the New Facility that is completed as of the date of such notice. 9. In the event Suez (i) allows its ad valorem taxes on the New Facility to become delinquent or fails to timely and properly follow the legal procedures for the protest and appeal of the ad valorem taxes on the New Facility or (ii) defaults under this Agreement and fails to cure, this Agreement may then be terminated. 5 In the event of termination of this Agreement pursuant to the provisions of this paragraph, all taxes previously abated by virtue of this Agreement will be recaptured and paid within sixty (60) days of the termination, together with penalties and interest as required by the Texas Property Tax Code. 10. In the event the New Facility is completed and begins commercial operations, but subsequently discontinues operations for any reason excepting fire,. explosion, or other- casualty, accident, or natural disaster or governmental mandate, for a period of one (1) year during the abatement period, then this Agreement shall terminate. In the event of termination pursuant to the provisions of this paragraph, the abatement of the taxes for the calendar year during which the New Facility no longer operates shall terminate, but there shall be no recapture of prior years' taxes abated by this Agreement. The taxes otherwise abated shall be paid to the City prior to the delinquency date for such year. In no event shall Suez be required to pay such taxes within less than sixty (60) days of the termination. Vlll. ADMINISTRATION 11. This Agreement shall be administered on behalf of the City by its City Manager. Upon completion of the New Facility, the City Manager shall annually evaluate the New Facility to ensure compliance with this Agreement. 12: The Chief Appraiser of the Jefferson County Appraisal District shall annually determine (i) the taxable value pursuant to the terms of this abatement of the real and personal property comprising the Suez WTS USA, Inc. -Project Clear Reinvestment Zone and (ii) the full taxable value without abatement of the real and personal property comprising the Suez WTS USA; Inc. -Project -Clear Reinvestment Zone. The Chief Appraiser shall record both the abatement taxable value and the full taxable value in the appraisal records. The full taxable value listed in the appraisal records shall be used to compute any recapture. Each year Suez shall furnish the Chief Appraiser with the information required by 6 Chapter 22, Tax Code, V.T.C.A. Such information shall also be provided to the City in preparation of its annual evaluation for compliance with this Agreement. 13. If after notice of default and failure to cure., the City terminates this Agreement, it shall provide Suez written notice of such termination. In the event of termination, Suez may file suit in the Jefferson County District Court appealing termination within ninety (90) days after receipt from the City of written notice of termination. If an appeal is filed, Suez shall remit to the City within sixty (60) days after receipt of the notice of termination, any recaptured taxes as may be payable during the pendency of the litigation under Section 42.08, Tax Code, V.T.C.A. If the final determination of the appeal increases Suez tax liability,. Suez shall pay the additional tax to the City pursuant to Section 42.42, Tax Code, V.T.C.A. if the final determination of the appeal decreases Suez tax liability, the .City shall refund to Suez the difference between the amount of tax paid and the amount of tax for which Suez is liable together with interest pursuant to Section 42.43, Tax Code, V.T.C.A. IX. ASSIGNMENT 14. Suez may assign this Agreement to an Affiliate without the written consent of the City, provided that Suez shall provide written notice of such assignment to the City. Except as provided in the immediately preceding sentence, Suez may assign this Agreement with the written consent of the City, which consent shall not be unreasonably withheld, delayed or conditioned. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out in this Agreement. No assignment shall be approved if Suez or the assignee is delinquent in ad valorem taxes due the City. X. NOTICE 15. Any notice required to be given under the provisions of this Agreement shall be in writing and shall be served when it is deposited, enclosed in a 7 wrapper with the postage prepaid thereon, and by registered or certified mail, return receipt requested, in a United States Post Office, addressed to the City or Suez. If mailed, any notice shall be deemed to be received three (3) days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: To Suez: OWNER: Mr. Joseph J. Devine Vice -President, Taxes 4636 Somerton Road Trevose, PA 19053 With a copy to: Mr. Steve Quataert Managing Partner —Affinity P.O. Box 51049 Fort Myers, FL 33994 To the City: City of Beaumont Kyle Hayes City Manager 801 Main Beaumont, TX 77701 With a copy to: Tyrone Cooper City Attorney 801 Main Beaumont, TX 77701 Chris Boone Director of Planning & Community Development 801 Main Beaumont, TX 77701 8 Either party may designate a different address by giving the other party ten (10) days written notice. )(I. AUTHORITY 16. Each of the parties hereto represents and warrants to the other party that (i) it has all requisite power and authority to execute and deliver, to perform its obligations under and to consummate the transactions contemplated by this Agreement and (ii) the execution and delivery of this Agreement, the performance of its obligations under and the consummation by each party of the transactions contemplated by this Agreement have been duly authorized by all requisite corporate authority on the part of Suez and by all requisite governmental authority on the part of the City and (iii) upon execution and delivery of this Agreement, this Agreement will constitute valid and binding legal obligations of such party. XII. ®ATE 17. This Agreement may be executed in counterparts and the effective date of the Agreement shall be the date the City executes this Agreement, so authorizing, on the date of the countersignature hereto by the Manager of the City of Beaumont on this 0 day of bee, nbAt/ , 2020. 0 XIII. MISCELLANEOUS 18. In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 19. The City agrees to record certified copy of this Agreement in the Deed Records of Jefferson County, Texas. 20. This Agreement shall be construed under the laws of the State of Texas. Venue .for any action under this Agreement shall be the State District Court of Jefferson County, Texas. 21. This Agreement shall be subject to change, modification or, except in the event of default which has not been cured. as provided herein, termination, only with the. mutual written consent of the City and Suez. 22. SEVERABILITY In the event any provision of this AGREEMENT is illegal, invalid, or unenforceable under present or future laws, then, and in that event, it is the intention of the Parties hereto that the remainder of this AGREEMENT shall not be affected the and it is also the intention of the Parties to this AGREEMENT that in lieu of each clause or provision that is found.to be illegal, invalid, or unenforceable, a provision be added to this AGREEMENT which is legal, valid, and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 23. This complete Agreement has been executed by the parties in multiple originals, each having full force and effect. Suez WTS USA, Inc. 1 By: (Si ature) Mr. Joseph J. Devine Vice President, Taxes /z123�?02o (Date City of Beaumont L ( L- (Signature) Kyle Hayes City Manager lz -Zg-Zo (Date) ATTEST: nature) o e�ff ited Name and Title) Executed in duplicate this the-4 day of, 2020. EXMBIT A "Description of Project and OWNER Property" The proposed project is to modernize the Beaumont facility, including modernizing process, capacity, reliability, infrastructure and safety updates. The facility would be constructed on the OWNERS land, located within the City of Beaumont's Municipal Boundaries and within the boundaries of the Suez WTS USA, Inc. -Project Clear Reinvestment Zone. 12 EXHIBIT B "Base Yeai• Property" The reinvestment zone contains existing improvements. The base year taxable value as certified will be attached, by consent of the parties, when"same is calculated and adopted by the Jefferson County Appraisal District. 13 EXHIBIT C — "Reinvestment Zone" 14 ORDINANCE NO. 20-059 ENTITLED AN ORDINANCE DESIGNATING AN AREA AS THE SUEZ WTS USA, INC. REINVESTMENT ZONE PURSUANT TO THE TEXAS REDEVELOPMENT AND TAX ABATEMENT ACT (TEXAS TAX CODE, CHAPTER 312); PROVIDING TAX INCENTIVES; PROVIDING FOR. SEVERABILITY; AND PROVIDING FOR REPEAL.. WHEREAS, the City of Beaumont endeavors to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in areas of the City; -and, WHEREAS, Suez WTS USA, Inc. is seeking incentives for an investment to upgrade its facility located on College Street just west of the Municipal Airport; and, WHEREAS, it is necessary to establish a Reinvestment Zone for the purpose of commercial and industrial tax abatement before Suez WTS USA, Inc. is to be considered for incentives; and, WHEREAS, it Is found to be feasible and practical and would be a benefit to the land to be included in the zone and to the City of Beaumont after the expiration of any agreement entered into pursuant to the Property Redevelopment and Tax Abatement Act; :and, WHEREAS, to further this purpose, it is in the best interest of the City of Beaumont to designate the area described in Exhibit "A" and shown on Exhibit "B" as the Suez WTS USA, Inc. Reinvestment Zone pursuant to the Texas Redevelopment and Tax Abatement Act (Texas Tax Code, Chapter 312); and, WHEREAS, the zone is eligible for Commercial -Industrial tax abatement; and, WHEREAS, the area being designated is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City of Beaumont; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. That the statements and findings set out in the preamble to this ordinance are hereby, In all things, approved and adopted. Section 2. That the City Council hereby designates the area described in in Exhibit A and shown on Exhibit "B," attached hereto and incorporated herein for all purposes, as the Suez WTS USA, Inc. Reinvestment Zone (herein referred to as the "Zone"). Section 3. That the City Council finds that the Zone meets the criteria contained in the Texas Redevelopment and Tax Abatement Act (Texas Tax Code, Chapter 312). Section 4. That the City Council finds that the designation of the reinvestment zone would contribute 'to retention or expansion of primary employment in the area and/or would contribute. to the attraction of major investments that would be a benefit to the property and would contribute to the economic development of the municipality. Section 5. That the City Council may provide certain tax incentives applicable to business enterprises in the Zone, which are not applicable throughout the city, as allowed for in -the Act. Section 6. That the City Council has established certain guidelines and criteria governing tax abatement agreements and is therefore eligible to participate in tax abatement. Section 7. That a public hearing to consider this ordinance was held by the City Council on October 20, 2020. Section 8: That"this ordinance shall take effect from and after its passage as the law and charter provide. Section 9. That if any section, subsection, sentence, clause, or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining - portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 10. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of Octolzer, 2020. I llr. V ayo ', DESCRIPTION OF APPROXIMATELY 30.10 AC. / 1,311,156 SQ. FT. A parcel containing approximately 31.10 AC. / 1,311,156 sq. ft. of land: Beginning at a southwest corner of the City Limits to Beaumont, Texas at the intersection of the most westerly border of the City and the north right-of-way line of College Street, also known as U.S. Highway 90. Also being the southwest corner of Tract 16, A. Savery Survey, Abstract 46 a 2.559 Ac. Tract; Thence, in a northerly direction along the west line of the City Limits of Beaumont and the said 2.559 Ac. Tract, a distance of approximately 899 ft. to the northwest corner of said called 2.559 Ac. Tract and the corner of the herein described Tract. Said point being in the City Limit line; Thence, In an easterly direction along the north line of said 2.559 Ac. Tract approximately 125 ft. to a point, said point being the northeast corner of the said 5.559 Ac. Tract and the northwest corner of Tract 93, A. Savery Survey, Abstract 46, an 18.51 Ac. Tract; Thence, continuing In an easterly direction along the north line of said 18.51 Ac. Tract approximately 1,063 ft. to the northeast corner of said 18.51 Ac. Tract and the northwest corner of Tract 92, S. Savery Survey, Abstract 46, a 9.031 Ac. Tract; Thence, continuing in an easterly direction along the north line of said 9.031 Ac. Tract approximately 531 ft. to the northeast corner of said 9.031 Ac. Tract; Thence, in a south southeasterly direction along the east line of said 9.031 Ac. Tract approximately 639 ft. to the southeast corner of said 9.031 Ac. Tract. Said point being located in the north right-of-way (R.O.W.) line of U.S. Highway 90 (width varies) and the City Limit line; Thence, in an west southwesterly direction along the south line of said 9.031 Ac. Tract, the north R.O.W. line of U.S. Highway 90 and the City Limit Line approximately 841 ft. to the southwest corner of said 9.031 Ac. Tract and the southeast corner of the previously mentioned 18.51 Ac. Tract; Thence, continuing in a west southwesterly direction along the south line of said 18.50 Ac. Tract, the north R.O.W. line of U.S. Highway 90 and the City Limit line approximately 870 ft. to the southwest corner of said 18.51 Ac. Tract and the southeast corner of the previously mentioned 2.559 Ac. Tract, Thence, continuing in a west southwesterly direction along the south line of said 2.559 Ac. Tract, the north R.O.W. line of U.S. Highway 90 and the City Limit line approximately 127 ft. to a corner. Said corner being the southwest corner of said 2.559 Ac. Tract, the southwest corner of the -City Limits to Beaumont, Texas and the Point of Beginning and containing approximately 31.10 AC. / 1,311,156 sq. ft. of land. PROJECT CLEAR Legal Description Summary: Owner Geo Name Parcel Identification Legal Description Acreage SUEZ WTS 300046-000: USA 132295 1 000300-00000-4 A SAVERY ABS-46 TR 92 9.031 AC 9.0310 SUEZ WTS 300046-000- A SAVERY ABS 46 TR 9318.51AC USA 132996 000310-00000-3 1#502500-000010 18.510 SUEZ A TS 300046-000- 08A 386438 001250-00000-0 A SAVERY ABS 46 TR 16 2.559AC 2.5590 Total Acreage 30.100 EXHIBIT D — "Abatement Schedule" "Tax Abatement Schedule" Year Abated - Percentage of Value Abated 2021 0% 2022 100% 2023 '100% 2024 90% 2025 80% 2026 70% 15 EXHIBIT E — "City of Beaumont Abatement Policy" It is understood and agreed that all abatement: agreements granted herein shall conform to this abatement policy and to the Texas Tax Code. 16