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HomeMy WebLinkAbout2001-306s da ORDINANCENO OOP- OO AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THAT CERTAIN TAX ABATEMENT AGREEMENT WITH UNITED COPPER INDUS- TRIES, INC WHICH ELIMINATES THE MINIMUM EMPLOYMENT AND ANNUAL PAYROLL THRESHOLDS, AND PROVIDING AN EFFECTIVE DATE WHEREAS, by Ordinance No 98-247 passed on August 18, 1998, the City Council au- thorized the Mayor to enter into a Tax Abatement Agreement with United Copper Industries, Inc providing a 25% tax abatement on all increases in real property values as set forth in the Tax Abatement Agreement for a period of six years, and WHEREAS, the Section of V(B) of the Agreement provides that if United Copper Indus- tries, Inc (Owner) allows the core employment, within the terms of this Agreement, to fall below 130, or the Owner fails to reach at least a payroll of $4,420,000 for any of the six years of the abatement, the abatement will be reduced to zero, and WHEREAS, that in order to promote economic development and to stimulate business and commercial activity, the City Council deems it in the public interest to eliminate the em- ployment and annual payroll thresholds indicated above, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the Mayor, or in her absence the Mayor Pro Tern, is hereby authorized to execute an amendment to that certain Tax Abatement Agreement between the City and United Copper, Inc to eliminate the above -mentioned annual payroll and employment thresholds con- tained in Section V(B) of the Agreement in substantially the form of the Amendment which is attached hereto and made a part of this ordinance for all purposes SECTION 2 That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the �� 5 day of 2001 Avk_ EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, KITTY SECRETARY BY mil/ iL0/ S Wm OowmwuWNlgencwWl\miluq capper unuWmwi oN du APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY m Page 2 S ITM"ATC "UCNMWro ff emW W abme agreetl STATE OF TEXAS § FIRST AMENDMENT TO TAX ABATEMENT COUNTY OF DENTON § AGREEMENT BETWEEN THE CITY OF CITY OF DENTON § DENTON AND UNITED COPPER INDUSTRIES, INC This First Amendment to that certain Tax Abatement Agreement between the City of Denton, Texas, and United Copper Industries, Inc , entered into on or about the 181h day of Au- gust, 1998, (hereinafter referred to as Basic Agreement) is entered into by and between the City of Denton (the "City"), duly acting here and by and through its Mayor, and United Copper Indus- tries, Inc, a Texas corporation (the "Owner"), duly authorized and in good standing to do busi- ness in the State of Texas, duly acting herein by and through its authorized officers That in order to promote local economic development, retain existing businesses, and to stimulate business and commercial activity in Denton and for other good and valuable considera- tions, the receipt and sufficiency of which is hereby acknowledged, the City and Owner agree to amend the Base Agreement as follows SECTION 1 That Section V(B) of the Base Agreement is hereby amended to read as follows B If, however, the Owner falls to construct any structures or other improve- ments, or fails to install any equipment or other tangible personal property within the Premises by January 31, 1999, if the Owner fails to employ at least 130 Jobs by July 31, 1999, if the value of all improvements falls below the current minimum $5,000,000 threshold for any of the six years of abatement, which causes the amount of Abatement to be reduced to zero, or Owner fails to execute the contract with the City to provide electric service or fails to maintain performance of its contractual obligations for the full period of the contract, then this Agreement may be terminated by the City In this event, Owner shall refund to the City all tax abatements previously granted and received under this Agreement with interest on the amount to be refunded at six percent (6%) per annum Additionally, as set forth in Section I(A), failure to construct and place Contemplated Improvements on the Premises that have a value of at least $35,000,000 by January 31, 2001, shall cause the term of the abatement to be reduced in accordance with the City's Tax Abatement Policy SECTION 2 That save and except as amended hereby, all the remaining sections, sub- sections, sentences, clauses, and phrases of the Base Agreement shall remain in full force and effect SECTION That this Amendment to the Base Agreement was executed on this the Al day of 2001 by duly authorized officials of the City of Denton and by United Copper dustries, Inc CITY OF DENTON, TEXAS EULINE BROCK, MAYOR 5W,Do..,�NMIW<aW.. Wax Aw..,..E ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY UNITED COPPER INDUSTRIES, INC A TEXAS 2ORRPORATION Title ATTEST 4 BY W'-- R Page 2 9 Wue Ouuumwle\Coul,xYb1\vnitW wppm wood to AMC a" doe STATE OF TEXAS COUNTY OF DENTON Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Eulme Brock, Mayor for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this in- strument was executed for the purposes and consideration therein expressed Given under my hand and seal of office this the � aay of A 2001 Y7 ­ rl f'JANE E. RICHA080NNotary Public,StateofTows1sMy Commleelon Expiresl ` June 27,4006 STATE OF TEXAS COUNTY OF DENTON Noiky Public in and for the State of Texas My Commission Expires l% Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared c tteAw6 s A 3/9,vt-Ae;,4 , on behalf of United Copper Indus- tnes, Inc , known to me to be the c .yi v� �� y� of United Copper Industries, Inc and to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed Given under my h day of cJ S T 2001 MICHAELS WRIGHT y NOTARY PUBLIC * STATEOFTEXAS My Comm Exp 03-30.04 otary Public in and for the 10 State of Texas My Commission Expires 03 �-0� Page 3