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HomeMy WebLinkAboutRES 23-096RESOLUTION NO. 23-096 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, on December 12, 2022, Council approved an Agreement with Arkema which became effective January 1, 2023; and, WHEREAS, an amendment to the Agreement is required to add Section (d) to page 4, the in -lieu of tax payment is based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute the amendment to the Industrial District Agreement with Arkema Inc. The 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 18th day of April, 2023. l - Mayor Robin Mouton THE STATE OF TEXAS COUNTY OF JEFFERSON § AGREEMENT This Agreement is arcade slider the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a anmaicipal corl)oration atad a lrome-r•rrle city located in Jefferson Coamty, Texas, herciraatier• called "CITY," and Arlcema Inc., its parent, subsidiaries and affiliates, lrareinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the mamifacturing, industrial, and ref ring facilities of said Compasry. The City has established an industrial district comprising a certain part of the extra -territorial jurisdictioaa of the City, sarch industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recogirizes the benefits of this Agreement aaad an obligation to contribute to the revenue needs of said City in acr amount conmretisurate with the burdens placed upon the City and betietits derived by the Company by reason of being located immediately adjaceat to said City. WHEREAS, the Comrpaary and the City desire to base the industrial district payment on Assessed Value (as defined in Article T, Section 2 hereof) to eirsure equity among the compairies 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, Compaaiy and City hereby agree as follows: 1 EXHIBIT "A" ARTICLE 1 COMPANY'S OBLIGATION Annual Payment on Company's Property I, Commencing with the calendar year 2023 and each calendar year thereafter for (lie duration of this Agreement, the Company will pay the City a certain sure which will be computed on the Assessed. Value of the Company's facilities and property, zeal, personal, and mixed located having taxable sites within the City of Beaumont Industrial District, (herein "tho Properties"), 2. By the terns "Assessed Value" is meant the 100%valuation of (lie Company Properties, as determirted by the Jefferson Central Appraisal District for the previous tax year. 3, Tile term "assumed City taxes dire" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value 1100 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 Vahie 1 100 X Current City Tax Rate � Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2023 Payment ►. 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, zeal, personal and mixed, having taxable sites within the City of BeaunioErt Inclustriat District; for example, in October, 2022, the 2022 Assessed Values shall be used for the February 1, 2023 payurent. This Assessed Value shall be used in tine calculation of the payment, If the Assessed Values for the period required are in question and/or under litigation with the Jefferson Cenlral Appraisat District, payment shall be computed on the most recent certified values front 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 l0% more or less than the prior year payment. The 2026-2029 payment shall be 75% of assumed City taxes due, except that- tire, amount may not be more than 7% more or less thaia the prior year payment. (c) City hereby agrees to bill Company for its payniennts due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February I each year. Upon receiving the finial payment, the Chief Financial Officer shall issue an official receipt of said City acluiowledging fall, timely, final, and complete payment dare 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 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 Maid to the City within 60 days of any such event. (d) Novus leases land from Company for its interest in improvements made prior to 2008. The value of Novue assets will be subject to provisions of the Agreement. No separate agreement for Novus will be executed. ARTICLE II PROPERTY COVERER BY AGREEMENT This instrument will reflect the intention of the parties hereto that this histrument shall govern and affect the properties of Company (facililies, 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 extraterritorial 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 lire 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 Propeyty Tax Code relating to (i) third parties' property that is in the Affected Area and in (lie Property Owner's possession or under the Property Owner's managcinent by bailment, lease, consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third parties for storage of personal property in (lie Affected Area. 4 ARTICLE III SALE BY COMPANY Coniparix sliall notify City of any sale of any or all of Company's facilities to any person or cntity. It is the intent of the parties that no sale of ally of Coriipany's facilities will affect the anioun€ to be paid (o the City as provided under this Agreement. Accordingly, and as to payments (tile under (Iris Agreement no such sale sliall reduce the amount due (lie 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 paynictits to the City, ARTICLE IV CITY'S OBLIGATIONS 1. City agrees that it will not annex, a(tempt to annex or' ill ally way cause or perinit 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 ally part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general laealth, 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 atinexation, Ili the event of such annexation, Company will not be required to make further payment under this Agreenicut for any calendar year commencing after such annexation witli respect to the property so annexed but shall nevertheless be obligated to make -Rill payment for €lie year during which such annexation become effective if the annexation becomes effective after January Ist 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 sliall 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 [lie circumstances with all cost of such 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 fitrtlier 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 laird, (b) prescribing any buildings, cleeh•ical, 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 sets+ices to Conlpatiy'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 fiill, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to my action at law for damages which either party may have, Company sliall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendmelit ill violation of, or in conflict with, the ternis of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce 6 its rights. It is further agreed that should this Agreemckrt be breached by Company, the City shall be entitled, it) 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 Vl AFFILIATES The benefits accruing to Arkc na Inc. under this Agreement shall also extend to Arkema lnc.'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. hereia 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 mcan 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 oiler 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 tinrc in question owns or has the power to exercise control over fifty percent (SO%) of the stock having the right to vote for the election of directors of Cornpanny. 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 (lie manufacturing facilities/lands included within the area described throughout the entire terns 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 V111 TERM OF AGREEMENT The term of this Agreement shall be for Seven (7) years, commesicing January 1, 2023, and ending on December 31, 2029, ARTICLE IX NOTICES Any notice provided for in this Agreement, or urhieh may otherwise he required by law shall he given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY City Manager Arkcma Inc. City of Beaumont Plant Manager 801 Main P.O. Box 1427 P. O. Box 3827 Beaumont, Texas 77704 Beat mont, Texas 77704 And Katie Rasmussen Tax Director Axke,a-ia Irtc, 900 First Avenue Icing of Prussia, PA 19406 Plione: (610) 205-7656 Entail: 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 0 ARTICLE X CONTINUATION If this Agreement shall be Feld invalid by airy court of competent jurisdiction, such holding shall not affect the right of City to any payment made or amllitlg to City hereunder prior to such adjudication, and this provision is intended to bean independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 10 pages is executed in dttplicate countorparts as of this day of , CITY OF BEAUMONT, TEXAS Kenneth R. Williams City Manager ATTEST: Tina Broussard City Clerk Arkema Ittc. By: ATTEST: Katie Rasmussen Assistant Treasurer 10 ADDENDUM FOR ABATEMENT AND ADDITIONAL PAYMENTS I, Tlac abatetaietat atad paytaaent paovisiotis below shall aplrly if Arlcenaa starts construction of an expamion project known as Project Strawberry, The payment set out hereunder shall not be date 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 valise 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 of the abatement, the City would receive ata 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 duritag the effective dates of an agreement relating to abatement, Arkema (owner) files or prosecutes all action to contest the appraised value of any property of the owner or owtaer's affiliates within the City's ETr for atttequal 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 canceled. Any approved abatements that go beyond calendar year• 2029 shall be extended or included its the subsequent Industrial District Agreement. 11 THE STATE OF TEXAS § COUNTY OIL JEFFERSON § AGREEMENT This Agreement is ;nade ender 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 ihouze-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, stick 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 1, 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 UX141BIT "A" ARTICLR I COMPANY'S OBLIGATION Annual Payment on Company's Property 1, Commencing with the calendar year 2023 and each calendar year thereafter for (lie 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 .nixed located having taxable sites within the City of Beaumont Industrial District, (Herein "the Properties"), 2. By the terns "Assessed Value" is meant the 100% valuation of the Company Properties, as determined by the Jefferson Central Appraisal District for the previous tax yea3-. 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 =Assurned City Tax Due Year 1 80% of Assumed City Taxes Due = 2023 Payment N 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 sifts within the City of Beaiunont 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 Clio 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 witliui 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 amoinit 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 clue 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 Maid to the City within 00 days of any such event. (d) Novus leases land from Company for its interest in improvements made prior to 2008. The value of Novus assets will be subject. to provisions of the Agreement. No separate agreement for Novus will be executed. ARTICLE II PROPERTY COVERED BY AGREEMENT This inshrment 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 oil 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. 4 ARTICLE Ill SALE BY COMPANY Company sliall notify City of any sale of ally or all of Company`s facilities to any person or entity. It is the intuit of the parties that no sale of arty of Company's facilities will affect the amount to be paid to the City as provided tinder this Agreement. Accordingly, and as to payments due under this Agreement no such sale shall reduce tite amount date the City under this Agreement until the purchaser of such facility ltas 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 L 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 deternvnes 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 tinder this Agreeraeut 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 tine year during which such annexation become effective if the annexation becomes effective after January 1st of said year. (b) hi the event any municipality other than the City attempts to annex separately or in the event the creation of any new mumicipality 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 I immediate legal relief against ally 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 action being borne equally by the City and by the said Company or compalties within the City of Beawnont Industrial District with the Company`s portion allocated on the basis of Assessed Values. 2. The City farther 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 hand, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or cotztrol in any way the conduct of Company's activities, facilities or personnel thoreof 3. It is understood and agreed that during the term of this Agreement oa' any renewals thereof, the City shall not be required to furnish any municipal sets ices 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 Rill, 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 6 its rights. It is further agreed that should this Agreement be breached by Company, the City shall 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 Ina's "parent", subsidiaries, "affiliates" and to any properties owned or acquired by said parent, subsidiaries, and affiliates within ilte extraterritorial jurisdiction, and where reference is made herein to land, property and improvements owner{ by Arkema Inc. that shall also include land, properly and improvements owned by its parent, subsidiaries, and/or affiliates. The word "affiliates" as used herein shall incan 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 (hiring the terin of this agreement, ARTICLE Vill 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 And Katie Rasmussen Tax Director Arke,ma Inc. 900 First Avenue King of Prussia, PA 0406 Phone: (610) 205-7656 Email: katie.raf;musseii@arkema.com arkema.com With copy to; Chief Financial Officer Jeffrey Moore, Principal City ofDeaumont 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 rigbt 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. IN WITNESS T'HEREO ,', this Agreoment, comistiag of 10 pages is executed in duplicate colmtelI>a�ts as of this ay of Aw CITY OF BEA.UMONT, TEXAS By: /0'if Kenneth R. Williamis City Ivianager City Clerk Arkema Inc. By: Katie Ra lussen Assistant Treasurer ATTEST: Tax Agent 10 ADDENDUM FOR ABATEMENT AND ADDITIONAL PAYMENTS 1, The abatement and payment pi-ovisions below sliall apply if Arkema starts construction of an expansionz 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 of the abatement, the City would receive ail 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 an 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 canceled. Any approved abatements that go beyond calendar year 2029 shall be extended or included in the subsequent Industrial District Agreement. 11