HomeMy WebLinkAboutRES 22-333 RESOLUTION NO. 22-333
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute an Industrial
District Agreement.with Arkema Inc., to enable the City to collect payments in lieu of
taxes from industries located outside the city limits, but within the extra territorial
jurisdiction of the City. The Agreement is substantially in the form attached hereto as
Exhibits "A" and "B," 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 12th day of
December, 2022.
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- Mayor Robin Mouton -
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THE STATE OF TEXAS §
COUNTY OF JEFFERSON § •
•
AGREEMENT
This Agreement is made under the authority of Section 42.044 of the Texas Local
Government Code.
The parties to the Agreement are The City of Beaumont, a municipal corporation and a
home-rule city located hi Jefferson County, Texas, hereinafter called "CITY," and Arkema hic.,
its parent, subsidiaries and affiliates,hereinafter called "COMPANY."
PREAMBLE
WHEREAS, Company owns land and improvements which are a part of the
manufacturing, industrial, and refining facilities of said Company. The City has established an
industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such
industrial district being known as the City of Beaumont Industrial District.
WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to
contribute to the revenue needs of said City in an amount commensurate with the burdens placed
upon the City and benefits derived by the Company by reason of being located immediately •
adjacent to said City.
WHEREAS, the Company and the City desire to base the industrial district payment on
- Assessed Value (as defined in Article I, Section 2 hereof) to ensure equity among the companies
located within the City of Beaumont Industrial District.
In view of the above and foregoing reasons,and in consideration of the mutual agreements
herein contained, Company and City hereby agree as follows:
i
EXHIBIT "A"
ARTICLE I
COMPANY'S OBLIGATION
Annual Payment on Company's Property
1. Commencing with the calendar year 2023 and each calendar year thereafter for the
duration of this Agreement,the Company will pay the City a certain sum which will be computed
on the Assessed Value of the Company's facilities and property, real, personal, and mixed
located having taxable situs within the City of Beaumont Industrial District. (Herein "the
Properties").
2. By the term"Assessed Value"is meant the 100%valuation of the Company Properties,
as determined by the Jefferson Central Appraisal District for the previous tax year.
3. The term "assumed City taxes due" shall be calculated by the following formula:
Assumed City Taxes Due:
Assessed Value/ 100 X Current City Tax Rate—Assumed City Tax Due
4. Payment Procedures
The procedures for determining and making such payments shall be as follows:
(a) The payment for 2023 shall be due and payable on or before February 1,2023,and
calculated as follows:
Assumed City Taxes Due:
Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due
Year 1 80% of Assumed City Taxes Due=2023 Payment
2
Each October thereafter, the Chief Financial Officer shall obtain the most recent Assessed
Values as set by the Jefferson Central Appraisal District for the Company's properties, real,
personal and mixed, having taxable situs within the City of Beaumont Industrial District; for
example, in October, 2022, the 2022 Assessed Values shall be used for the February 1, 2023
payment. This Assessed Value shall be used in the calculation of the payment.
If the Assessed Values for the period required are in question and/or under litigation with
the Jefferson Central Appraisal District, payment shall be computed on the most recent certified
values from the Jefferson Central Appraisal District. The Company shall notify the City following
resolution of the appraised value question and an adjustment for the payment,without interest,will •
be made within thirty(30) days following such resolution.
(b) After the Assessed Value of the Company's properties has been determined, the
payments due hereunder shall be calculated in accordance with the following schedule: .
The 2023-2025 payment shall be 80% of assumed City taxes due, except that the
amount may not be more than 10%more or less than the prior year payment.
The 2026-2029 payment shall be 75% of assumed City taxes due, except that the
amount may not be more than 7%more or less than the prior year payment.
(c) City hereby agrees to bill Company for its payments due hereunder on or before
January 1 each year. Company shall pay to City the amount billed on or before February 1 each
year. Upon receiving the final payment,the Chief Financial Officer shall issue an official receipt
of said City acknowledging full, timely, final, and complete payment due by said Company to
City for the property involved in this Agreement for the year in which such payment is made. If
payment is not made on or before any due date, the same penalties, interest, attorneys' fees and
costs of collection shall be recoverable by the City as would be collectible in the case of delinquent
3
ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would
have been paid to the City had Company been in the City limits of City will be recaptured and paid
to the City within 60 days of any such event.
• ARTICLE II
PROPERTY COVERED BY AGREEMENT
This instrument will reflect the intention of the parties hereto that this instrument shall
govern and affect the properties of Company (facilities, real, personal, and mixed) located on
Company's real property as shown on the records of the Jefferson Central Appraisal District,which
are within the extra-territorial jurisdiction of the City of Beaumont. On or before May 1 of each
year during the term of this Agreement, the Property Owner shall furnish to the City a written
report listing the names and addresses of all persons and entities who store any tangible personal
property on the land in the Affected Area with the Property Owner and are in the possession or
under the management of Property Owner on January 1 of such year, and further giving a
description of such tangible personal property. The Property Owner shall file all reports required
by the chief appraiser of the Jefferson Central Appraisal District under Section 22.04 of the Texas
Property Tax Code relating to (i) third parties' property that is in the Affected Area and in the
Property Owner's possession or under the Property Owner's management by bailment, lease,
consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third
parties for storage of personal property in the Affected Area.
ARTICLE III
SALE BY COMPANY
Company shall notify City of any sale of any or all of Company's facilities to any person
or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the.
4
• amount to be paid to the City as provided under this Agreement. Accordingly and as to payments
due under this Agreement no such sale shall reduce the amount due the City under this
Agreement until the purchaser of Well facility has entered into a contract in lieu of taxes with the
City that provides for a continuation of like payments to the City.
ARTICLE IV
CITY'S OBLIGATIONS •
1, City agrees that it will not annex, attempt to annex or in any way cause or permit to be
annexed any portion of lands or facilities or properties of said Company covered by this Agreement
•
for the period of the agreement except as follows:
(a) If the City determines that annexation of all or.any part of the properties covered
by this Agreement belonging to said Company is reasonably necessary to promote and protect the
general health, safety and welfare of persons residing within or adjacent to the City,the City will .
notify Company in accordance with State law of the proposed annexation. In the event of such
annexation, Company will not be required to make further payment under this Agreement for any
calendar year commencing after such annexation with respect to the property so annexed but shall
nevertheless be obligated to make full payment for the year during which such annexation become
effective if the annexation becomes effective after January 1st of said year. 1�
(b) In the event any municipality other than the City attempts to annex separately or in the
event the•creation of any new municipality shall be attempted so as to include within its limits any
land which is the subject matter of.this Agreement,City shall,with the approval of Company,,seek
immediate legal relief against any such attempted annexation or incorporation and shall take such
other legal steps as may be necessary or advisable under the circumstances with all cost of such
5
action being borne equally by the City and by the said Company or companies within.the City of
Beaumont Industrial District with the Company's portion allocated on the basis of Assessed
Values.
2. The City further agrees that during the term of this Agreement, there shall not be
extended or enforced as to any land and property of Company within said City.of Beaumont
Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control
the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or
inspection standards or equipment, or(c) attempting to regulate or control in any way the conduct
of Company's activities,facilities or personnel thereof.
3. It is understood and agreed that during the term of this Agreement or any renewals
thereof, the City shall not be required to furnish any municipal services to Company's property
located within the City of Beaumont Industrial District;provided,however, City agrees to furnish
fire protection to Company should such protection be requested by Company in the event an
unusual emergency situation occurs.
ARTICLE V
TERMINATION OF BREACH
It is agreed by the parties to this Agreement that only full, complete and faithful
performance of the terms.hereof shall satisfy the rights and obligations assumed by the parties and
that,therefore,in addition to any action at law for damages which either party may have,Company
shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in
violation of, or in conflict with,the terms of this Agreement and shall be entitled to obtain such
other equitable relief,including specific performance of the Agreement,as is necessary to enforce
its rights. It is further agreed that should this Agreement be breached by Company,the City shall
6
• be entitled, in addition to any action at law for damages,to obtain specific performance of this.
Agreement and such other equitable relief necessary to enforce its rights.
ARTICLE VI
AFFILIATES
The benefits accruing to Arkema Inc. under this Agreement shall also extend to Arkema
Ins.'s "parent", subsidiaries, "affiliates" and to any properties owned or acquired by said parent,
subsidiaries, and affiliates within the extraterritorial jurisdiction, and where reference is made
herein to land, property and improvements owned by Arkema Inc. that shall also-include land,
property and improvements owned by its parent, subsidiaries, and/or affiliates. The word
"affiliates" as used herein shall mean all companies with respect to which Company directly or
indirectly, through one or more intermediaries at the time in question, owns•or has the power to
exercise the control over fifty percent(50%) or more of the stock having the right to vote for the
election of directors. The word"parent" as used herein shall mean that company which directly at
the time in question owns or has the power to exercise control over fifty percent (50%) of the
stock having the right to vote for the election of directors of Company.
ARTICLE VII
ASSIGNMENT
Company may assign this Agreement to any entity succeeding to the ownership of its
properties covered by this Agreement after providing written notice to the City.
It is specifically agreed by the City that the covenants,promises, and guarantees of the City made
to Company in this Agreement extend to its respective successors and assigns and to all of the-
manufacturing facilities/lands included within the area described throughout the entire terns of
7
this Agreement notwithstanding the fact that the legal title to such lands or properties may pass,
in whole or in part,to successors or assigns during the term of this agreement.
ARTICLE VIII
TERM OF AGREEMENT
The term of this Agreement shall be for Seven(7)years,commencing January 1,2023,and
ending on December 31, 2029.
ARTICLE IX
NOTICES
Any notice provided for in this Agreement, or which may otherwise be required by law
shall be given in writing to the parties hereto by Certified Mail addressed as follows: •
TO CITY TO COMPANY
City Manager Arkema Inc.
City of Beaumont Plant Manager
801 Main P.O.Box 1427
•
P. O.Box 3827 Beaumont,Texas 77704
Beaumont,Texas 77704 131
And
Katie Rasmussen
Tax Director
Arkema Inc.
900 First Avenue
King of Prussia,PA 19406
Phone: (610) 205.7656
Email: katie.rasmussen@arkema.com
With copy to:
Chief Financial Officer Jeffrey Moore,Principal
City of Beaumont Ryan,LLC
P.O.Box 3827 100 Congress Ave, Ste 1900
Beaumont, Texas 77704 Houston,Texas 78701
•
ARTICLE X
CONTINUATION
If this Agreement shall be held invalid by any court of competent jurisdiction, such
holding shall not affect the right of City to any payment made or accruing to City hereunder prior
to such adjudication, and this provision is intended to be an independent and separable provision
not to be affected by such adjudication.
1
9
IN WITNESS THEREOF,this Agreement,consisting of 10 pages is executed in duplicate
counterparts as of this day of
CITY OF BEAUMONT,TEXAS
By:
Kenneth R. Williams
City Manager
ATTEST:
Tina Broussard
City Clerk
Arkema Inc.
By:
Katie Rasmussen
Assistant Treasurer
ATTEST:
io
ADDENDUM FOR ABATEMENT AND ADDITIONAL PAYMENTS -
1. The abatement and payment provisions below shall apply if Arkema starts construction of
an expansion project known as Project Strawberry. The payment set out hereunder shall
not be due and payable by Arkema in the event Project Strawberry does not go forward or
does not reach operational.status.
(a) Project.Strawbeny expansion investment estimated at a value of$115 million.
•
All new:construction and equipment related to this project will receive a six (6) year
tax abatement at one hundred percent(100%)for fax years 2026-2027;ninety percent
(90%) for,.tax years.202S-2029; and seventy percent (70%) for tax years 2030-2031.
For:consideration;of..the-abatement, the City would receive an additional payment of
$75,000 in years.2024 and 2025. These payments would be above and beyond the
payment=made for existing facilities.
It is specifically understood and agreed by Arkema, if at any time during the effective
.dates.of.aw.agreement relating to abatement, Arkema (owner) files or prosecutes an
-action to'contest'.the•appraised value of any property of the owner or owner's affiliates
within the City's ETJ.for unequal appraisal or revision thereof pursuant to Sec. 42.26,
Texas'Tax:Code, any and all abatements granted by City to Owner or its affiliates shall
become:null and void and cancelled.Any approved abatements that go beyond calendar
year .2029 shall .be extended or included in the subsequent Industrial District
Agreement.
Exhibit"B"
THE STATE OF'TEXAS §
COUNTY OF JEFFERSON §
AGREEMENT
This Agreement is made under the authority of Section 42.044 of the Texas Local
Government Code.
The parties to the Agreement are The City of Beaumont, a municipal corporation and a
home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and Arkema Inc.,
its parent, subsidiaries and affiliates, hereinafter called "COMPANY."
PREAMBLE
WHEREAS, Company owns land and improvements which are a part of the
manufacturing, industrial, and refining facilities of said Company. The City has established an
industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such
industrial district being known as the City of Beaumont Industrial District.
WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to
contribute to the revenue needs of said City in an amount commensurate with the burdens placed
upon the City and benefits derived by the Company by reason of being located immediately
adjacent to said City.
WHEREAS, the Company and the City desire to base the industrial district payment on
Assessed Value (as defined in Article I, Section 2 hereof) to ensure equity among the companies
located within the City of Beaumont Industrial District.
In view of the above and foregoing reasons, and in consideration of the mutual agreements
herein contained, Company and City hereby agree as follows:
1
ARTICLE I
COMPANY'S OBLIGATION
Annual Payment on Company's Property
1. Commencing with the calendar year 2023 and each calendar year thereafter for the
duration of this Agreement,the Company will pay the City a certain sum which will be computed
on the Assessed Value of the Company's facilities and property, real, personal, and mixed
located having taxable situs within the City of Beaumont Industrial District. (Herein "the
Properties").
2. By the term"Assessed Value" is meant the 100%valuation of the Company Properties,
as determined by the Jefferson Central Appraisal District for the previous tax year.
3. The term "assumed City taxes due" shall be calculated by the following formula:
Assumed City Taxes Due:
Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due
4. Payment Procedures
The procedures for determining and making such payments shall be as follows:
(a) The payment for 2023 shall be due and payable on or before February 1,2023, and
calculated as follows:
Assumed City Taxes Due:
Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due
Year 1 80% of Assumed City Taxes Due=2023 Payment
2
Each October thereafter, the Chief Financial Officer shall obtain the most recent Assessed
Values as set by the Jefferson Central Appraisal District for the Company's properties, real,
personal and mixed, having taxable sites within the City of Beaumont Industrial District; for
example, in October, 2022, the 2022 Assessed Values shall be used for the February 1, 2023
payment. This Assessed Value shall be used in the calculation of the payment.
If the Assessed Values for the period required are in question and/or under litigation with
the Jefferson Central Appraisal District, payment shall be computed on the most recent certified
values from the Jefferson Central Appraisal District. The Company shall notify the City following
resolution of the appraised value question and an adjustment for the payment,without interest,will
be made within thirty (30) days following such resolution.
(b) After the Assessed Value of the Company's properties has been determined, the
payments due hereunder shall be calculated in accordance with the following schedule:
The 2023-2025 payment shall be 80% of assumed City taxes due, except that the
amount may not be more than 10%more or less than the prior year payment.
The 2026-2029 payment shall be 75% of assumed City taxes due, except that the
amount may not be more than 7%more or less than the prior year payment.
(c) City hereby agrees to bill Company for its payments due hereunder on or before
January 1 each year. Company shall pay to City the amount billed on or before February 1 each
year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt
of said City acknowledging full, timely, final, and complete payment due by said Company to
City for the property involved in this Agreement for the year in which such payment is made. If
payment is not made on or before any due date, the same penalties, interest, attorneys' fees and
costs of collection shall be recoverable by the City as would be collectible in the case of delinquent
3
ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would
have been paid to the City had Company been in the City limits of City will be recaptured and paid
to the City within 60 days of any such event.
ARTICLE II
PROPERTY COVERED BY AGREEMENT
This instrument will reflect the intention of the parties hereto that this instrument shall
govern and affect the properties of Company (facilities, real, personal, and mixed) located on
Company's real property as shown on the records of the Jefferson Central Appraisal District,which
are within the extra-territorial jurisdiction of the City of Beaumont. On or before May 1 of each
year during the term of this Agreement, the Property Owner shall furnish to the City a written
report listing the names and addresses of all persons and entities who store any tangible personal
property on the land in the Affected Area with the Property Owner and are in the possession or
under the management of Property Owner on January 1 of such year, and further giving a
description of such tangible personal property. The Property Owner shall file all reports required
by the chief appraiser of the Jefferson Central Appraisal District under Section 22.04 of the Texas
Property Tax Code relating to (i) third parties' property that is in the Affected Area and in the
Property Owner's possession or under the Property Owner's management by bailment, lease,
consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third
parties for storage of personal property in the Affected Area.
ARTICLE III
SALE BY COMPANY
Company shall notify City of any sale of any or all of Company's facilities to any person
or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the
4
amount to be paid to the City as provided under this Agreement. Accordingly, and as to payments
due under this Agreement no such sale shall reduce the amount due the City under this
Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with the
City that provides for a continuation of like payments to the City.
ARTICLE IV
CITY'S OBLIGATIONS
1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be
annexed any portion of lands or facilities or properties of said Company covered by this Agreement
for the period of the agreement except as follows:
(a) If the City determines that annexation of all or any part of the properties covered
by this Agreement belonging to said Company is reasonably necessary to promote and protect the
general health, safety and welfare of persons residing within or adjacent to the City, the City will
notify Company in accordance with State law of the proposed annexation. In the event of such
annexation, Company will not be required to make further payment under this Agreement for any
calendar year commencing after such annexation with respect to the property so annexed but shall
nevertheless be obligated to make full payment for the year during which such annexation become
effective if the annexation becomes effective after January 1st of said year.
(b) In the event any municipality other than the City attempts to annex separately or in the
event the creation of any new municipality shall be attempted so as to include within its limits any
land which is the subject matter of this Agreement, City shall,with the approval of Company, seek
immediate legal relief against any such attempted annexation or incorporation and shall take such
other legal steps as may be necessary or advisable under the circumstances with all cost of such
5
action being borne equally by the City and by the said Company or companies within the City of
Beaumont Industrial District with the Company's portion allocated on the basis of Assessed
Values.
2. The City further agrees that during the term of this Agreement, there shall not be
extended or enforced as to any land and property of Company within said City of Beaumont
Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control
the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or
inspection standards or equipment, or(c) attempting to regulate or control in any way the conduct
of Company's activities, facilities or personnel thereof.
3. It is understood and agreed that during the term of this Agreement or any renewals
thereof, the City shall not be required to furnish any municipal services to Company's property
located within the City of Beaumont Industrial District; provided,however, City agrees to furnish
fire protection to Company should such protection be requested by Company in the event an
unusual emergency situation occurs.
ARTICLE V
TERMINATION OF BREACH
It is agreed by the parties to this Agreement that only full, complete and faithful
performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and
that,therefore,in addition to any action at law for damages which either party may have, Company
shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in
violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such
other equitable relief,including specific performance of the Agreement, as is necessary to enforce
its rights. It is further agreed that should this Agreement be breached by Company,the City shall
6
be entitled, in addition to any action at law for damages,to obtain specific performance of this
Agreement and such other equitable relief necessary to enforce its rights.
ARTICLE VI
AFFILIA IES
The benefits accruing to Arkema Inc. under this Agreement shall also extend to Arkema
Inc.'s "parent", subsidiaries, "affiliates" and to any properties owned or acquired by said parent,
subsidiaries, and affiliates within the extraterritorial jurisdiction, and where reference is made
herein to land, property and improvements owned by Arkema Inc. that shall also include land,
property and improvements owned by its parent, subsidiaries, and/or affiliates. The word
"affiliates" as used herein shall mean all companies with respect to which Company directly or
indirectly, through one or more intermediaries at the time in question, owns or has the power to
exercise the control over fifty percent (50%) or more of the stock having the right to vote for the
election of directors. The word"parent" as used herein shall mean that company which directly at
the time in question owns or has the power to exercise control over fifty percent (50%) of the
stock having the right to vote for the election of directors of Company.
ARTICLE VII
ASSIGNMENT
Company may assign this Agreement to any entity succeeding to the ownership of its
properties covered by this Agreement after providing written notice to the City.
It is specifically agreed by the City that the covenants,promises, and guarantees of the City made
to Company in this Agreement extend to its respective successors and assigns and to all of the
manufacturing facilities/lands included within the area described throughout the entire term of
this Agreement notwithstanding the fact that the legal title to such lands or properties may pass,
in whole or in part, to successors or assigns during the term of this agreement.
ARTICLE VIII
l'LRM OF AGREEMENT
The term of this Agreement shall be for Seven(7)years,commencing January 1,2023,and
ending on December 31, 2029.
ARTICLE IX
NOTICES
Any notice provided for in this Agreement, or which may otherwise be required by law
shall be given in writing to the parties hereto by Certified Mail addressed as follows:
TO CITY TO COMPANY
City Manager Arkema Inc.
City of Beaumont Plant Manager
801 Main P.O.Box 1427
P. O. Box 3827 Beaumont,Texas 77704
Beaumont, Texas 77704
And
Katie Rasmussen
Tax Director -
Arkema Inc.
900 First Avenue
King of Prussia, PA 19406
Phone: (610) 205-7656
Email: katie.rasmussen@arkema.com
With copy to:
Chief Financial Officer Jeffrey Moore, Principal
City of Beaumont Ryan, LLC
P.O. Box 3827 100 Congress Ave, Ste 1900
Beaumont, Texas 77704 Houston, Texas 78701
8
ARTICLE X
CONTINUATION
If this Agreement shall be held invalid by any court of competent jurisdiction, such
holding shall not affect the right of City to any payment made or accruing to City hereunder prior
to such adjudication, and this provision is intended to be an independent and separable provision
not to be affected by such adjudication.
9
IN WITNESS THEREOF,this Agreement,-- consisting of 10 pages is executed in duplicate
counterparts as of this�kday ofi w vYb -, a)c?.9.••
..��►'�����`� CITY OF BEAUMONT,TEXAS
b
del
MO 1%
aaa.,ti+•'-t � (/lam
� aa45;„� � (� r� BY:
:� ;r4; r; ;, c+�
I� ry�� " Kenneth R.Williams
i.•�: -`ffl`:?1fjAtit3tl�:tf;�.R�S
: �' City Manager
ATTEST: 0� .` �'
DA n40 64
Tina Broussard
City Clerk
Arkema Inc.
By:
Katie Ra nussen
Assistant Treasurer
ATTEST:
kinzt
Tax Agent
10
ADDENDUM FOR ABATEMENT AND ADDITIONAL PAYMENTS
1. The abatement and payment provisions below shall apply if Arkema starts construction of
•
an expansion project known as Project Strawberry.The payment set out hereunder shall •
not be due and payable by Arkema in the event Project Strawberry does not go forward or
does not reach operational status.
(a) Project.Strawberry expansion investment estimated at a value of$115 million.
All new:construction and equipment related to this project will receive a six(6) year
tax abatement at one hundred percent(100%)for tax years 2026-2027; ninety percent
(90%)for..tax•years 2028-2029; and seventy percent(70%) for tax years 2030-2031.
•For,consideration:ofthe abatement, the City would receive an additional payment of
$75,000 in years.2024 and 2025. These payments would be above and beyond the
payment=made'for;existing facilities.
It is specifically understood and agreed by Arkenia,if at any time during the effective
_dates.of.au agreement relating to abatement, Arkema (owner) files or prosecutes an
-action to,contest;.the appraised value of any property of the owner or owner's affiliates
within the City's ETJ.for unequal appraisal or revision thereof pursuant to Sec. 42.26,
Texas Tax:Coile,-any and all abatements granted by City to Owner or its affiliates shall
become:null and void and cancelled.Any approved abatements that go beyond calendar
year.2029 shall .be extended or included in the subsequent Industrial District
Agreement.