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1998-247 NOTE Amended by Ordinance No 2001-306 O mANCENO qf o Or A CE A rSo zn o tO A AG~EMEm ~TH ~TED COPPER ~UST~ES. INC SETT~G FORTH ~L THE ~Q~D TE~S OF T~ T~ ~ATEMENT AG~EMENT ~ ACCO~CE ~TH THE TE~S OF C~TER 312 OF THE TE~S T~ CODE. SETT~G FORTH THE V~OUS CO~ITIONS P~CEDENT TO ~ITED COPPER ~CEW~G THE T~ ~ATE~NT, AUTHO~G THE MAYOR TO E~CUTE ~ AG~EMENT ~TH ~TED COPPER ~UST~ES TO PROVUE ELECT~C~ SERVICES FOR A M~- ~ PE~OD OF FWE ~S, PROVinG FOR A SEVE~ILITY CLAUSE. ~ PROVinG ~ EFFECTIVE DATE ~AS, on the 3ra day of Febm~. 1998. after a pubhc hemng duly held m ~cor- d~ce w~ ~312 201 of the Act, ~e C~ Co~cd p~sed Ordm~ce No 98-016 (~e "Or&- n~ce'3 estabhs~g Rmnvestment Zone No I, C~ty of Denton, Texas ~ a co~ercm~ndus~al relnves~mt zone for t~ abatement (~e "Zone"), ~ au~onzed by T~tle 3, Chapter 312, Sub- chapter B of~e Tex~ T~ Code (~e "Act"), ~d ~AS, on the 12th day of December, 1997, Umted Copper ~dusmes, Inc submit- ted ~ apphcat~ for t~ abatem~t w~ vroom a~ac~ents to ~e C~ concemng ~e contem- plated use of c~n prope~ located ~t~n the Zone, ~d ~AS, ~e Cl~ Co~ml finds that the comemplated use of the premmes ~d ~e contemplated ~mprovments to ~e premmes, ~ mdmmed by Umted Copper Indus~es, Inc ~e consistent wl~ enco~agmg ~e developm~t of ~e Zone m accord~ce wl~ the p~oses for ~ts creation ~d ~e m comph~ce wl~ ~e D~ton T~ Abatem~t Pohcy, ~d ~AS, ~e C1V Co~ml deems it m the pubhc interest to enter into a T~ Abate- ment A~eement ~th Umted Copper ~dusmes, Inc, NOW, THE~FO~, THE CO~CIL OF THE CITY OF DE~ON ~BY O~S SECTION I. ~at ~e findmgs contam~ in the prembles to thru ordm~ce ~e ~e ~d co.eot mhd ~e adopted ~ a pm of ~e whole or&n~ce SECTION II. That ~e C~ty Council finds ~d dete~lnes the following 1 That the contemplated use of the premmes ~d the contemplated improvements of the prem- ises, as m&cated by Umted Copper Industries, Inc ~e conmstent with encouraging ~e de- velopment of ~e Zone m accord~ce with the p~oses of its creation ~d ~e ~n comphmce with the Denton Tax Abatement Pohcy 2 That the City Co~ml finds ~at ~e improvements sou~t by United Copper Indus~es, Inc wl~m ~e Zone ~e feamble ~d practmal ~d would be a benefit to ~e l~d to be included in the Zone ~d to the C~ty after ~e expiration of the T~ Abatement A~eement to be entered ~nto wl~ Umt~ Copper ~dus~es, Inc 3 That the City Council finds that the Tax Abatement Agreement contmns all the terms which are mandltonly reqmred to be ~ncluded in any tax abatement agreement under §312 205 of the Act 4 That, m accordance with Tex Tax Code §312 2041, the City Councd finds that not later than the date on whmh the C~ty Council considered this ordinance, and not later than the seventh day before the date the C~ty enters ~nto a Tax Abatement Agreement w~th Umted Copper In- dustries, Inc, that the C~ty Manager, through the D~rector of Economm Development, who are hereby designated and authorized by the C~ty Counml to g~ve such notice, dehvered to the presiding officer of the Denton Independent School District and Denton County a written notice that the C~ty ~ntends to enter into this Tax Abatement Agreement w~th Umted Copper Industries, Inc, and that th~s not,ce included a copy of the proposed Tax Abatement Agree- ment m substantmlly the form of the Tax Abatement Agreement attached to th~s ordinance SECTION III That the Mayor, or m h~s absence, the Mayor Pro Tem, ~s hereby author- ~zed to execute a Tax Abatement Agreement w~th Umted Copper Industries, Inc, substantially ~n the form of the Tax Abatement Agreement whmh ~s attached to and made a part of thru ordinance for all purposes as ffwntten word for word hereto Prowded, however, that the Mayor shall exe- cute the Agreement s~multaneously with the execution of similar tax abatement agreements with Umted Copper Industries, Inc executed by the Denton Independent School D~stnct and Denton County so that all these tax abatement agreements take effect at the same t~me SECTION IV That the Mayor, or m h~s absence, the Mayor Pro Tem is further author- lzed to execute the attached contract between the C~ty of Denton and Umted Copper Industries, Inc to prowde exclusive electric serwee for a period of not less than five years, in substantially the form of the Elect'nc Service Agreement, which ~s attached to and made a part of th~s ordi- nance for all purposes as if written word for word herein SECTION V That the C~ty Counml hereby instructs and authorizes the City Manager to anspect, audit, and evaluate the progress of United Copper Industries, Inc to determine if at has met all of the eondit~ons of the attached Tax Abatement Agreement prior to the tax abatement going ~nto effect SECTION VI That ~f any section, subsection, paragraph, sentence, clause, phrase, or word m tlus ordmance, or apphcatlon thereof to any person or c~mumstance ~s held ~nvahd by any court of competent junsdmt~on, such holding shall not affect the vahd~ty of the remalmng portions of thru ordinance, the C~ty Council of the C~ty of Denton hereby declares that they would have enacted such remmnmg portions despite any such vahdlty SECTION VII That this ordmance shall become effective ~mmedmtely upon ~ts passage and approval Page 2 PASSED AND APPROVED this the /~Lt day of~L~, 1998 JAC~tq~LER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTORNEY Page 3 STATE OF TEXAS § TAX ABATEMENT AGREEMENT BETWEEN COUNTY OF DENTON § THE CITY OF DENTON AND UNITED CITY OF DENTON § COPPER INDUSTRIES, INC This Tax Abatement Agreement (the "Agreement") is entered into by and between the C~ty of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and United Copper Industries, Inc, a Texas corporation (the "Owner"), a privately held corporation duly authorized and in good standing to do business in the State of Texas, duly acting herein by and through Its authorized officers WHEREAS, the City has adopted a resolution stating that it elects to be eligible to par- tlclpate m tax abatement and has adopted guidelines and criteria governing tax abatement agree- ments known as the Denton Tax Abatement Policy, and WHEREAS, on the 27th day of January, 1998, the City Council of Denton, Texas (the "City Council") adopted the Denton Tax Abatement Policy (the "Policy"), winch is attached hereto and incorporated herein as Exhibit "A" and made a part of tins Agreement for all pur- poses, and WHEREAS, the Policy constitutes appropriate "gmdehnes and criteria' governing tax abatement agreements to be entered into by the City as contemplated by Section 312 002 of the Texas Tax Code, as amended (the "Code"), and WHEREAS, on the 3r~ day of February, 1998, the City Council passed Ordinance No 98- 016 (the "Orchnanee") establishing Relnvestmant Zone No I, City of Denton, Texas, as a eom- merclal/mdustnal remvastm~nt zone for tax abatement (the "Zone"), as authorized by Title 3, Chapter 312, Subehapter B of the Code (the "Act"), and WHEREAS, Owner owns or leases certain real property, more particularly described in Exhibit "B" attached hereto and incorporated herein by reference and made a part of this Agree- ment for, all purposes (the "Premises") located entirely within the Zone, and WHEREAS, on the 12th day of December, 1997, Owner submttted an apphcatlon for tax abatement with various attachments to the C~ty concermng the contemplated use of the Premises (the "Apphcatlon for Tax Abatement"), attached hereto and incorporated herein as Exhibit "C" and made a part ofth~s Agreement for all purposes, and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth ~n this Agreement, and the other terms hereof are consistent with encouraging development of said Zone in accor- dance w~th the purposes for ~ts creation and are m comphance with the Pohcy and the Ordinance and similar gmdehnes and criteria adopted by the City and all applicable law, and WHEREAS, the City Cotmcfl finds that the terms of th~s Agreement, and the Premises and Contemplated Improvements, meet the apphcable gmdehnes and criteria heretofore adopted by the C~ty Council, which are set forth m the Pohcy, and WHEREAS, written notme that the C~ty intends to enter into this Agreement, along with a copy of th~s Agreement, has been furmshed by the City, ~n the manner and by the t~me pre- scribed by the Code, to the presiding officers of the govermng bodies of each of the taxing umts in which the Premises ~s located, NOW, THEREFORE, the C~ty and Owner for and in cons~deratmn of the premises and the promises contained hereto do hereby contract, covenant, and agree as follows I CONDITIONS OF ABATEMENT A A condition of the Abatement (defined below) is that, by January 31, 1999 (sub- ject to force majeure delays not to exceed 180 days), a capital investment that establishes an ad- dlt~onal assessed property value of real property improvements, equipment, and other tangible and personal property in excess of the assessed property value for the Prenuses on January 1, Page 2 1998 (value) of at least $35,000,000, by January 31, 2000 a capxtal investment of at least $37,000,000, and by January 31, 2001 a capital investment of at least $40,400,000 be made wxth respect to construction and equipping of a building or bmldtngs and other improvements to be constructed on the Premises which are described in the Apphcatlon for Tax Abatement Owner agrees to bmld a budding or buildings of approximately 373,000 square feet within the area scribed in Exhibit "B", substantially in accordance with Exhibit "D" as described in Section II(F) hereof, at value of new real property improvements, equipment, and other tangible personal property of at least $35,000,000 w~th respect to construction and equipping of the building or bmldlngs or other ~mprovements to be constructed on the Premises on or before January 1, 1999 (the "Contemplated Improvements") For the purposes of the ~mmed~ately preceding sentence, capital ~nvestment wxth respect to construction and eqmpp~ng the Contemplated Improvements shall ~nclude (1) costs related to the development and ~mprovement of the real estate, including, without lmutatlon, construction costs and design and eng~neenng costs, (2) tangible personal property located on or at the Contemplated Improvements by Owner, excluding inventory and supplies The kind and location of the Contemplated Improvements is more particularly de- scribed m the Application for Tax Abatement For the purposes of th~s paragraph, the term "fome majeure" shall mean any clmumstance or any condition beyond the control of Owner, as set forth m Section XXII "Force Majeure" which makes ~t impossible to meet the above- mentioned thresholds Provided, however, should Owner fail to make a capital investment in the Contemplated Improvements that establishes a value of at least $35,000,000 on or before January 31, 2001 ~n accordance with the C~ty's Tax Abatement Policy, the number of years of tax abate- ment will be reduced to coincide with the maxxmum years of abatement per the amount of the value established by the Policy For example, ~fthe total value established by the capital invest- ment m the Contemplated Improvements is $34,000,000, the number of years of tax abatement Page 3 shall be reduced from six years to five years, tn addition to the proportional reduction ~n abate- ment reqmred under Sections I(C) and (F) hereof B A condttlon of the abatement is that the Contemplated Improvements be con- strutted and the Premises be used substantially m accordance with the description of the project set forth in the Application for Tax Abatement C A condition of the abatement is that, in connection with the operation of the Con- templated Improvements, Owner shall employ a mmtmum of 250 full-time jobs and net a total annual payroll of $8,500,000 with an average of $34,000 per job over each of the six years of abatement following the beginning date defined in paragraph III(E) If fome majeure conditions make it impossible for any condition m Section I to be met, Owner may elect to explain the rea- sons why such condition was not met and shall propose a recommended course of action with respect to such condition If the City Council finds that the failure to meet such condition was justified, the City Council may modify the requirements of this paragraph If the total employ- ment of the project is not 250 jobs and the annual payroll does not meet the threshold of $8,500,000 or the Owner does not achieve an assessed value of $35,000,000 for the Contem- plated Improvements by January 31, 1999, the tax abatement will be reduced by the percentage relative to the actual value of the Contemplated Improvements and the agreement value of the Contemplated Improvements, the actual number of full-time jobs, the agreed number of full-time jobs, the actual payroll, and the agreed payroll, m accordance with the formula set forth in para- graph I(F) For the purposes of making the calculation of full-time jobs, those employees who begin their employment with Owner afler October 1, 1995 shall be included, to allow Owner to count employees who will be moved to the Contemplated Improvements in Denton from loca- tions outside the City of Denton, and whose jobs are moved to the Contemplated Improvements w~thln the area described m Exhibit "B" wlttun the Zone Page 4 D Owner covenants that as of January 1, 1998, there were no bmldxngs, structures, eqmpment, personal property, or other ~mprovements (defined below) on the Premises A con- d~t~on of th~s abatement ~s that throughout the Term of the Abatement, the Contemplated Im- provements shall be operated and mamtmned for the purposes set forth hereto so that the uses of the Premises shall be consistent w~th the general purpose of encouraging development or rede- velopment of the Zone, except as otherwise authorized or modffied by th~s Agreement E The C~ty shall have the right to terminate the abatement if the Owner does not oc- cupy or lease the Contemplated Improvements In the event of such terra,natron whmh results ~n the Owner falhng below one or more of the mm~mum threshold levels set forth m SeeUon V(B) hereof, the Owner shall refund to the City all prewous tax abatements and all tax abatements for future years shall be terminated F If the total Contemplated Improvements constructed on the project do not meet the threshold value of $35,000,000, or 250 full-t~me Jobs are not employed, or the payroll does not reach $8,500,000 or any other threshold ~n SecUon I(C), the tax abatement will be reduced by the percontage relative to the actual value and the agreement value In the event that the Owner fails to meet two or more criteria or thresholds, the tax abatement will be reduced by the largest percentage o f non-comphance For example, ff the total value of structures and ~mprovements to the real estate and the personal property tnstalled and eqmpped within the structures ~s $31,500,000 or 10% less and there are only 250 full-t~me jobs or 8% less, then the tax abatement shall be reduced by 10% or 2 5%, reducing the tax abatement from 25% to 22 5% for each year the Owner does not meet these thresholds If the abatement has already been granted, then Owner shall ~mmed~ately, upon receiving notme from the City, remit the amount by wluch the tax abatement should be reduced w~th mterest at s~x percent (6%) per annum from the t~me the Owner was not m comphance For example, m the example above, Owner would remit 2 5% of Page 5 the total abatement from the date the abatement was recmved and ~nterest on the prtnmpal amount from the date the Owner was not in comphance G Stmultaneously wtth the execution of this Agreement, the Owner shall enter into a long-term agreement with the City of Denton Municipal Utihties for the prows~on of electric service for a term of not less than five years, and shall maintmn performance of its contractual obligations for the full period of the contract Provided, however, the sale of the City's entire electrical system, which by the terms of the agreement between Owner and Cxty for electrical service causes a termination of the electrical services agreement, shall not constitute a default ~n performance of fins Agreement which will result in a recapture of all or a part of the tax abate- ment H In consideration of the abatement granted herein Owner agrees to comply with all the terms and conditions set forth in this Agreement II GENERAL PROVISIONS A The City has concluded that ~t has adopted guidelines and criteria governing tax abatement agreements for the Ctty to allow it to enter into this Agreement contmmng the terms set forth hereto B The City has concluded that procedures followed by the City conform to the re- qmrements of the Code and the Ordinance, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements C The Premises are not m an ~mprovement project financed by tax increment bonds D Neither the Premises nor any of the Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning and Page 6 Zomng Commission of the City, or any member of the govcrmng body of any taxing units joln- lng in or adopting this Agreement E In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control F The building for Owner shall be constructed substantially as shown on the at- tached drawing submitted by Trammell Crow, which is attached hereto and incorporated as Ex- hibit "D' and made a part of this Agreement for all purposes Provided, however, nothing herein shall prevent Owner from making changes to the building as shown in Exhibit "D" as may be necessary to meet state and federal environmental laws and regulations III ABATEMENT TERMS AND CONDITIONS A In consideration of the Owner meeting all the terms and cond,tlons of abatement set forth herein, the City hereby grants a tax abatement ("Abatement") (1) to Owner relative to the Premises and all improvements to the Premises (the "Improvements"), and (2) to Owner for the tangible personal property on the Premases excluding inventory and supplies, such Abate- ment to be subject to the following terms and conditions B The value of the Abatement on the Premises and the Improvements shall be the following portion of the increase in value of the Improvements on the premises over their value on January 1, 1998, the year ~n which this Agreement is executed in accordance with Section 312 204 ,of the Code Twenty-five percent (25%) of the increase in value from construction of any Improve- ments C The value of the Abatement on the tangible personal property on the Premises, excluding ~nventory and supplies, shall be the following portion of the ~ncrease in value of such Page 7 tangablel personal property on the Premases over the value on January 1, 1998 tn accordance wtth Sectaon 312 204 of the Code Twenty-five percent (25%) of the increase tn value of the tangable personal property on the Premases whach as used by Owner an the operataon of the Contemplated Improve- ments D Owner shall have the right to protest and contest any or all apprmsals or assess- ments of the Premises and/or Improvements or any tangable personal property owned by Owner If Owner is successful ~n obtmmng a reduction an taxes based upon such protest or contest atter a tax abatement for that year has been granted, it shall ammedlately notafy the Caty, through its Caty Manager E The term of the Abatement (the "Term") shall began on January 1 of the year fol- lowang the calendar year an wbach a certificate of occupancy as assued by the Caty for the Im- provements (the "Beginning Date") and, unless sooner terminated as herean provided, shall end st th on the December 31 ammediately preceding the 6 annaversa~ of the Begannang Date F If the value of the Improvements, the number of employees, or payroll requare- ments are not met, the tax abatement will be reduced by a pementage relative to proposed and actual numbers as set forth in paragraph I(F) IV RECORDS AND EVALUATION OF PROJECT A The Owner shall provide access and authorize inspection of the property by C~ty employees and allow sufficient inspection of financial information to insure that the improve- ments are made and the thresholds are met according to the specifications and eondmons of this Agreement Such inspections shall be done in a way that will not interfere with Owner's busi- ness operations City shall annually (or such other tames deemed appropriate by the City) evalu- Page 8 ate the ProJect to ensure comphance with this Agreement Owner shall prowde ~nfonnatlon to the City on a form provided by the City for the evaluation The information shall ~nclude the following (2) the total number of employees who work on the premises, their total sala- ries, (n) an inventory listing the kind, number, and location of and the total value of all improvements to the property, including, without limitation, the value of all structures and all tangible personal property installed or lo- cated in the Premises B The City Manager shall make a demslon and rule on the eligibility of the Project for tax abatement based on the information furnished each year by the Owner on or before August 1 of the taxable year and shall so notify Owner, the Joint Committee on Tax Abatement, and the City Council For the first taxable year, the payroll threshold wdl be considered to be met if there are at least 250 full-time employees of the Owner by July 31, 1999 and the average wage is $34,000 per employee If the Owner is dissatisfied with the City Manager's decision, It can appeal hrs demslon to the City Council The City Council's decision on the matter shall be binding, final, and not appealable, except for arbitrary and capricious acts and actions, gross negligence or willful misconduct, and any appeal shall be under the substantial evidence rule, provided, however, that notwithstanding the foregoing, under no circumstances shall the City Manager or the C~ty Council be anthonzed to terminate, reduce, or recapture the Abatement un- less the conditions of the Abatement are not satisfied within the time frames specified herein Dunng normal office hours throughout the Term of thrs Agreement, providing reasonable notice is given to Owner, the City shall have access to the Premises by City employ- ees for the purpose of respecting the Premises and the Improvements to ensure that the Ira- Page 9 provements are being made tn accordance with the specfficat~ons and conditions of th~s Agree- ment and to verify that the conditions of this Agreement are being comphed w~th, prowded that such ~nspectmn shall not ~nterfere with Owner's normal busxness operations D The Owner shall annually make a certfficatton in writing to the City Council, the Commissioners Court of Denton County, and the Board of Trustees of the Denton Independent School Dlstnct, on or before June 1st of each year this Agreement ~s ~n effect, except for the first year when Owner shall have until July 31, 1999 to make th~s certfficatmn, that certffies that the Owner is in comphance with each applicable term of thxs Agreement and any other tax abate- ment agreement it may have entered into w~th Denton County and the Denton Independent School Dmtnct E That s~multaneously with the execution of th~s Agreement, Owner ~s entenng into s~mdar tax abatement agreements w~th Denton County and the Denton Independent School D~s- tnct Nothing in th~s Agreement shall preclude Denton County and the Denton Independent School D~stnct from entenng into tax abatement agreements whmh contain different terms and conditions than th~s Agreement and thfferent portions of abatement than shown ~n paragraph III(B) and (C) of th~s Agreement, m accordance w~th Section 312 206(c) of the Act, Chapter 312, Subchapter B, of the Act, and all other apphcable laws V FAILURE TO MEET CONDITIONS A In the event that (0 the conditions ~n paragraphs I(A), (C), (F), and (G) are not met, or (n) Owner allows Its ad valorem real property taxes with respect to the Premises or Im- provements, or Its ad valorem taxes w~th respect to any tangible personal property, ff any, owned by the Owner whmh ~s located ~n the Improvements, owed the C~ty to become dehnquent and falls to t~mely and properly follow the legal procedures for protest and/or contest of any such ad Page 10 valorem real property or tangible personal property taxes, or (Ill) any other conditions of the Abatement Agreement are not met, then a "Condition Failure" shall be deemed to have occurred (it being understood that a Condition Failure relating to any condition set forth tn paragraphs I(A), (C), (F), and (G) shall not be deemed to occur merely because at a partmular t~me ~t cannot be determined whether such condition will be met, but shall occur only tf at a particular t~me ~t can be definitively determined that such condition will not be met) In the event that a Condition Fmlure occurs, the City shall give Owner written notice of such Condmon Failure and ~f the Condition Failure has not been cured or satisfied within ninety (90) days of smd written notice, the Abatement shall be reduced in accordance with paragraph I(F), and Owner shall mm~t the amount of the Abatement by which it was reduced plus Interest from the time the Owner re- ceived the Abatement for each year the Owner is out of compliance Provided, however, that if such Condition Failure is not reasonably susceptible of cure or satisfaction within such ninety (90) day period and Owner has commenced and is pursuing the cure or satisfaction of same, then after first advising City Council of efforts to cure or satisfy same, Owner may utilize an addi- tional ninety (90) days Time in addition to the foregoing 180 days may be authorized by the City Council, and such authorization shall not be unreasonably w~thheld If a Condition Failure ~s not cured or satisfied after the expiration of the apphcable notice and cure or satisfaction pen- ods, the Abatement shall be terminated with respect to the year in which notice of the Condition Fmlure is g~ven and all future years It being understood that the Abatement with respect to any year pnor to the year in which notice of the Condition Fmlure ~s given shall not be forfeited or recaptured except as indicated under Section V(B) hereof Notwithstanding any provision in this Agreement to the contrary, Owner shall refund to the City all tax abatements previously received w~th interest for the year in which the notice of Condition Failure is given Page B If, however, the Owner fatls to construct any structures or other ~mprovements, or fmls to install any eqmpment or other tangible personal property within the Premises by January 31, 1999, ffthe value of all improvements falls below the current minimum $5,000,000 threshold or ~fthe Owner fads to employ at least 130 jobs by July 31, 1999, or ~f the total employment w~thm the term of thts Agreement falls below 130, or the Owner fmls to reach at least a payroll of $4,420,000 for any of the s~x years of abatement, whmh causes the amount of Abatement to be reduced to zero, or Owner falls to execute the contract wtth the City to prowde electric servtce or fads to mmntam performance of ~ts contractual obhgat~ons for the full penod of the contract, then th~s Agreement may be termmated by the C~ty In th~s event, Owner shall refund to the C~ty all tax abatements prewously granted and received under thts Agreement with interest on the amount to be refunded at slx percent (6%) per annum Addmonally, as set forth ~n Sectton 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 wtth the Ctty's Tax Abatement Pohcy C That tn the event of a condition fatlure by Owner which ~s not cured or sattsfied as set forth hereto, m addition to a partml or total recapture of the tax abatement, the Ctty may can- cel or modify th~s Agreement VI EFFECT OF SALE, ASSIGNMENT, OR LEASE OF PROPERTY A The Abatement wtth respect to the ProJect, lncludtng any tangible personal prop- erty located on the ProJect owned by Owner shall vest tn Owner and shall be asstgnable, wtth Ctty approval, which shall not be unreasonably w~thheld, to any tndtvtdual, partnershtp, joint venture, corporation, trust or other entity 0rrespect~ve of whether or not such assignee ts related to or affihated wtth Owner) whmh acqmres t~tle to the ProJect Any asstgnee of Owner or any Page 12 assignee of a d~rect or indirect assignee of Owner shall be treated as "Owner" under th~s agree- ment No assignment shall reqmre the consent of C~ty ~f, following such assignment, the Owner continues to occupy and operate the Contemplated Improvements for the full term of th~s Agreement Nor shall the consent of the City be necessary ~fthe assignee agrees to fully comply with the terms and conditions of this Agreement VII NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mall postage pre- pare or by hand dehvery OWNER CITY Dean Brown, V~ce President Ted Benavldes, City Manager United Copper Indusmes, Inc City of Denton P O Box 2617 215 East McI~nney Coppell, Texas 75019 Denton, Texas 76201 VIII CITY COUNCIL AUTHORIZATION Th~s Agreement was authorized by the C~ty Council by passage of an enabling ordinance at xts meeting on the 18th day of August, 1998, authonzlng the Mayor to execute this Agreement on behalf of the City, a copy of which is attached hereto and incorporated herein as Exhibit "E" as if written word for word herein IX BOARD OF DIRECTORS AUTHORIZATION Thxs Agreement was entered into by Owner, pursuant to authority granted by the Board of Dlreotors of Owner, as anthonzed by corporate resolution to execute this Agreement on behalf of Owner, a certificate evidencing such resolution and consent is attached hereto and incorpo- rated hereto as Exhibit "F" as ffwntten word for word herein Page 13 X SEVERABIILTY In the event any section, subsection, paragraph, sentence, phrase or work is held lnvahd, 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, para- graph, sentence, phrase, or word In the event that (1) the term of the Abatement with respect to any property is longer than allowed by law, or (ii) the Abatement applies to a broader classifica- tion of property than is allowed by law, then the Abatement shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law XI ESTOPPEL CERTIFICATE Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is In full force and effect without default (or If default exists the nature of default and curative action, which should be undertaken to cure same), the remain- lng term of this Agreement, the levels and remaining term of the Abatement m effect, and such other matters reasonably requested by the party(les) to receive the certificates XII OWNER STANDING Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the vahdlty of this Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said ht~gat~on Page 14 XIII APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas Venue for any action under thts Agreement shall be the State's District Court of Denton County, Texas This Agreement ts performable tn Denton County, Texas XIV RECORDATION OF AGREEMENT A certffied copy of thts Agreement tn recordable form shall be recorded tn the Deed Rec- ords of Denton County, Texas XV MUTUAL ASSISTANCE Ctty and Owner agree to do all things necessary or appropriate to carry out the terms and promstons ofthts Agreement and to atd and assist each other tn carrying out such terms and pro- vtslons Owner and Ctty agree at any ttme, and from ttme to t~me, to execute any and all docu- ments reasonably requested by the other party to carry out the tntent of thts Agreement XVI ENTIRE AGREEMENT Thts mstrument w~th the attached exhibits and the agreement to be executed between the parttes for the prowslon of electric sermce to Owner by the Ctty, contmns the entire agreement between the part,es w~th respect to the transactton contemplated tn thts Agreement XVII BINDING Thts Agreement shall be b~ndmg on the parttes and the respecttve successors, assigns, hetrs, and legal representatives Page 15 XVIII COUNTERPARTS Th~s Agreement may be executed in counterparts, each of whmh shall be deemed an original, but all of which together shall constitute one and the same instrument XIX SECTION AND OTHER HEADINGS Section or other headings contained ~n th~s Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement NO JOINT VENTURE Nothing contained in this Agreement is ~ntended by the parties to create a partnership or joint venture between the parties, and any lmphcat~on to the contrary xs hereby disavowed XXI AMENDMENT Th~s Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not originally necessary to this Agreement pursuant to the procedures set forth m Title 3, Chapter 312 of the Code XXII FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, stnkes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obh- gatlons under tlus Agreement, then the respective Party's obligations hereunder shall be sus- pended dunng such period but for no longer than such period of time when the party is unable to perform Page 16 That th~s Agreement was EXECUTED this //~//'x day o~, 1998, by duly authorized offictals of the C~ty and by Umted Copper Industries, a Texas corporation, s~multane- ously w~th the execution of s~mflar Tax Abatement Agreements between Umted Copper Indus- tries and the Denton Independent School D~stnct and Denton County CITY OF DENTON, TEXAS JACK ~, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTORNEY UNITED COPPER INDUSTRIES, INC T~tle ATTEST Page 17 STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public tn and for satd State of Texas, on thts day personally appeared Jack Miller, Mayor for the C~ty 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 my hand and seal of office th~s the/~"day o~, 1998 Given under _. ....... ~ ~~~ 1~,1~8~ ~ ~t['ar~ Pu~ ir] ~nd"for th~ - ~iite of T4xas My Commission Expires /~/~/~]ff STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned anthon[y, a Notary Pubhc in and for smd State of Texas, on this day personally appeared ~_aa.....,~ , on behalf of Umted Copper In- dustries, Inc, known to me to be th~ of United Copper Industries, Inc and to be the person who signed and executed the foregolrl~ instrument, and acknowledged to me that this Instrument was executed for the purposes and consideration therein expressed Given under my hand and seal of office thru the/l-~day of ~, 1998 .... ""i ~ ~ublmc .State_0[!~,~as ~ N~)~r~'~ti[~/l~ lnknd foithe § ~ Corniness&on Exp&ms 12 19 98 g S(tte of Tgx~ ~1~.. ................. ,..,...,.[t , ~ . My Co~ss~on Expires Page 18 EXHIBI~ A DENTON POLICY FOR TAX ABATEMENT I GENERAL PURPOSE AND OBJECTIVES The City of Denton (City), the Denton Independent School D~stnct (DISD) and Denton County are committed to the promotion of bagh quality development tn all parts of the c~ty and to an ongoing improvement m the qunhty of hfe for its citizens Insofar as these objecnves are generally served by the enhancement and expansion of the local economy, the City of Denton, DISD, and Denton County, will on a case-by-case basis, g~ve consideranon to providing tax abatement as a stimulation for economic developmentln Denton It is the pohcy of the City and DISD that smd considerationwlll be provided tn accordance with the procedures and criteria outlined tn ttus document Nothing herein shall imply or suggest that the City, DISD or Denton County are under any obhganon to provide tax abatement to any applicant AIl apphcants shall be considered on a case-by-case basis Tax inducements, as described In this policy, vall be considered for new, expanding and modermzang basic industries, corporate office headquarters and dlstnbunon centers II. CRITERIA Any request for a tax abatement shall be reviewed by the Jomt Committee on Tax Abatement, said Comrmttee b~lng comprised of two elected officials fi'om each of the taxing entrees involved One addtttonal staff per,on from each juns&ctton shall be appointed to serve as a nonvon~mo member of the comnuttee The Jomt Comrmttee on Tax Abatement serves as a reconunerdmg body to the taxing entities regarding whether economic development mcent~ves should be offered in each individual case Their recommendataon shall be based upon an evaluaUon of the follovang cntena wbach each applicant vail be requested to address in narratave format 1 History and Ptulosophy of the firm 25 a) Nature of products and geographic penetration b) Flnancml statements for past five years or hfe of firm whichever Is shorter c) Chronology of plant opemngs, closings, & relocations over past 15 years d) Record of mergers and financml restmctunng during last five years e) Record of employment and trmnmg provided for handicapped and chronically unemployed 2 Project Spee~fieauons a) Provtde plat of project including all roadways, land use and zomng w~thm 500 feet of s~te Legal description of s~te ~s reqmred b) Is the project a relocation or new facility to expand operauons If relocation, g~ve current location c) Project investment m real and personal property at the above s~te for each of the next ten years d) Project permanent employment for next ten years resulting from the new investment Indicate number of jobs that will be filled by people from outside the metroplex Include estimated average annual salary on new jobs e) What ~s the total current payroll and the projected payroll when project is completed f) Describe employment trmmng reqmrements including provls~ons for trmmng hancheapped and chromcally unemployed ~f apphcable g) Project utility (gas, electricity, water, ere ) usage for each of next ten years h) Estmaate the infrastructure (streets, sewer, water, ere ) reqmrements necessary to operate the new facility 0 Estn'nata the annual operating budget for next ten years j) Will the occupants of the project be owner or lessees9 If lessees, are occupancy corarmtments already existing9 k) Coive the name, afldress, and telephone number of contact person 26 3 The commumty ~mpact of the project a) Project the value of real and personal property that wall be added to the tax rolls b) Using current rates estimate the additional taxes that will be directly generated b~ the project without considering any proposed abatement for each of the affected taxing entities for each of the next ten years c) For each taxing entity indicate the amount of tax abatement requested for each of next ten years d) Estimate the increase in investment in other local businesses resulting from the project for the next ten years e) Estimate the increased housing needs in the area resulting from the project for ten years f) Estimate the increase m the tax rolls for each taxing entity for the next ten years g) Estimate the infrastructure constmctlon that would be reqmred because of the growth resulting indirectly from the project h) Provide the specific detail of any businesses/residents that will be displaced and assistance that will be avmlable from the requesting entity 0 Estimate the increase m students by grade level resulting from the project ~nclu&ng the multiplier effect (indirect growth) for the next ten years Show the increase for each impacted school dlsmct j) Provide description of any bastoncally sigmficant area included within the project's area If any, give detad of how the historically slgraficant area will be preserved k) Provide mformataon of any detrimental effect on existing businesses, recreational areas, and residenUal area 1) Provide detatls of any benefit to an area of the community targeted for revitahzatwn/redevelopment IlL VALUE OF INCENTIVES The criteria outlined in Section II will be used by the $omt Committee on Tax Abatement m detemumng whether or not it is in the best interests of the affected tayang entities to recommend that tax abatement be offered to a partmular facthty Specffic considerations wll include the degree to wbach the individual project furthers the goals and objectives of the commumty, as well as the relative impact of the project New, expanchng and modermzmg businesses vail be ehgible for abatement if the minimum 27 threshold, as descnbedbelow ts met Once a determinanonhas been made that a tax abatement should be offered, the value and term of the abatement will be determined by referencing the following table TABLE 1 Establishes maximum length of abatement according to assessed real property value of improvements and personal property MAXIMUM MAXIMUM VALUE OF STRUCTURE YEARS OF PERCENTAGE OF AND PERSONAL PROPERTY ABATEMENT ABATEMENT 100 10 25% 80 9 25% 65 8 25% 50 7 25% 35 6 25% 20 5 25% 15 4 25% 10 3 25% 5 2 25% If an existing business ts located within the boundaries of the partmlpaung junsdmUons and decides to expand or relocate wattun such boundaries, the actual value of the structure shall be multlphed by 125% prior to uuhzan$ Table 1 Ifthe expanding or relocatmg busmess is abandomng any property or tmprovemems watun the junsdmttons, the value of ttus abandoned property shall be sub~'acted from the new value figure prior to muluplymg the value by 125% The tax abatement shall not apply to any pomon of the land value of the project Applicants agreeing to extend mfi'astmcture improvements (streets and uulmes) to improve other industrial sites wluch can be marketed by the Chamber of Commeme Economm Development Director may be ehgible for a greater tax benefit than those descnbod above by uuhzmg tax increment financing procedures The offenng of such an inducement will be evaluated on a case-by-case basis dependant upon the apphcant's ablhty to make avmlable improved industrial roes Preliminary Application IV PROCEDURAL GUIDELINES Any person, orgamzat~on or corporation desmng that the C~ty or DISD consider providing tax abatement to encourage location or expansion of facflmes w~th~n the bruits of the jurisdictions shall be reqmred to comply with the £ollowang procedural gmdehnes Nothing within these gmdehnes shall tmply or suggest that either the City, or DISD, ~s under any obhgat~on to provide tax abatement to any apphcant A Apphcant shall complete the attached "Apphcat~on for Tax Abatement" B Apphcant shall address all criteria outhned ~n Section II above m narrative form C Apphcant shall prepare a map showang the precise location of the property and all roadways w~th~n 500 feet of the site D If the property ~s described by metes and bounds, a complete legal descnpaon shall be prowded E Apphcant shall complete all forms and information detailed ~n ~tems A through D above and submit them to the City Manager, City of Denton, 215 E Mci<ho. ney, Denton, TX 76201 Annheat~on Review Stem F All mformat~on m the apphcat~on package detmled above wall be reviewed for completeness and accuracy Addmonal ~nformat~on may be requested as needed G The apphcatlon wall be d~stnbuted to the appropnate C~ty and DISD departments for internal rewew and comments Additional mformat~on may be requested as needed H Cop~es of the complete apphcat~on package and staff comments wall be provided to the Joint Committee on Tax Abatement 29 Consideration of the Application The Joint Committee on Tax Abatement will consider the application at a regular or called meeting(s) Additional mformaUon may be requested as needed The recommendaUon of the Joint Committee on Tax Abatement will be forwarded, with all relevant materials, to the chief admmlstrauve office of each taxing entity If the City Council of Denton decides to grant a tax abatement it shall consider a resolution calling a pubhc heanng to consider establishment of a tax reinvestment zone ~n accordance with SecUon 312 201 of the Tax code and meeting one or more of the criteria of Secuon 312 202 of the Tax Code The City Council of Denton shall hold the public heanng and determine whether the project is "feasible and practical and would be of benefit to the land to be included m the zone and mum¢lpahty in accordance with Section 312 201" Special consideration shall be g~ven to policies noted ~n the Denton Development Plan when des~gnaung a tax reinvestment zone The City Council of Denton may consider adoption of an ordinance designating the area described m the legal desenpuon of the proposed project as a commercial/industrial tax abatement zone. The C~ty Council may consider adoption of an ordinance or resolution approving the ternm and conchUons of a contract between the City and the applicant govermng the prov~sion of the tax abatement and the commitments of the applicant including all the terms requtred by Section 312 205 of the Tax Code and such other terms and conditions as the City Council may reqmre Should the comrmtments subsequently not be satisfied, the tax abatement shall be null and void, and all abated taxes shall be prod xmmediately to the City of Denton and all other taxing junsdicUons participating in the tax abatement ~S~,A~EZ~D{U'~DVSVC~TAX ABA~?AX A~ATI~'~mI~r ~'O{.IC¥ ~ 3 0 agreement Provlslonsto this effect shall be lncorporatedlnto the agreement O The govermng bodies of the various taxing entities may consider ratification of and participation m the tax abatement agreement between the City of Denton and the apphcant Any tax abatement agreement will address various issues, mclu&ng, but not hm~ted to, the following General descnptlon of the project, 2Amount of the tax abatement and percent of value to be abated each year, 3Method of calculating the value of the abatemem, 4Durauon of the abatement, ~ncludmg commencement date and tenmnatlon date, 5Legal description oD. he property, 6Kand, number, location and timetable of planned ~mprovements; 7Specffic terms and condmons to be met by apphcant; 8The proposed use of the facility and nature of construction, 9 Contractual obhgaUons in the event of default, violation of terms or conditions, delinquent taxes, recapture, adrmmstraUonand asstgnment Annual Evaluation Upon completion of construction, the Joint Comrmttee on Tax Abatement shall annually evaluate each facthty receiving abatement to msure compliance with the agreement and report possible violations of the agreement to the taxing entities Transferor 4.sslgnment A contract for tax abatement may be transferred or assigned by the original applicant to a new owner upon the approval of the various taxing jurisdictions after such a recommendation is made by the Joint Committee on Tax Abatement ALL that,certain lot, t~act or parcel of lend lying end being sttuated tn the Ctty and Count~ of Denton, State of Texas, bemg part of the M. Forrest Survey, Abstract ~umber 417 and being more par~cularly described las follows: BEGINNING at the southwest COFFer of 90 6566 acre tract described as Tract III by Special Warrant~ deed conveyed to Albertson's Incorporated recorded in Volume 3205, Page 214 of the Real Propers/ Records of Denton County, Texas, sand poma also lying on the north hne of U.S. Highway 380; THKNCE South a d~stanee of 63 feet to the centerhne of said U S Highway 380; THENCE Northeasterly along the centertine of U.S. Htghway 380 a distance of 4~63 feet to a point for corner; THENCE 'North pmhg at 63 feet the north right-of-way line of U.S. Htghway 380 and continuing along the ~ast line ora 28 aeea true~ conveyed to D.C. Builard, et ux by deed recorded in Volume 432, Page 149 aftbe Deed Records of Denton County, Texas, eontinuhg North and passing the northeast coFFer of said Bullord tract and continuing North to a point in the eenterline of FbhtFFp Road; THENCE Westerly and northwesterly along the eenterflne courses of Fishtrap Road a distance of 3,210 feet to a point for corner, sam point being the intersection of the eeuteriJne of Fishtrap Road and the eentat4in~ of the Union Pacific Railroad; THENCE Southwesterly along the eantertine of the Union Paedie Railroad a distance of 1,'/10 feet to a point for corner;, THENCE South passing at 64 feet the most northerly northwest comer of sam 90.6S66 acre Albertson's tract and eonthuhq a total dbtance of 240 feet to a point for corner, sam point being the northwest corner ora 1.4S? acre SAVE & EXCEPT tract described as Tract !I in sam AlberUon's deed recorded in Volume 320S, Pale 214 R.P.R.D.C.T.; THENCE [Southem(erly don[ the not, least line of sam 1.4S'/acre tract a distance of S64 feet to a point for corner, sam point bin[ the southeast corner or enid 1.4S'/aer~ trnct; THENCE South along (be west line ora 2.114 acre tract described as TFFet I in said .ddberUou's deed recorded in Volume 320~ Pap 214 R.P.R.D.C.T. a distance of 662 to the southwest coFFer of smd 2.114 acre (reel; THENCE West · dbtnBee of 69 feet to (he mo~t southerly northwest conner of saM 90.6S66 acre .4dberUon'~l tract; THENCE South a distance or 18s feet to the POINT OF BEGINNING and containing 163 acres of lamL ~ United Copper Industries Apphcation for Tax Abatement Prepared for Proposed Denton Site Dec~mber 12, 1997 ! TABLE 0FCONTENTS Section I EXECUTWE SUMMARY Section Il APPLICATION FOR TAX ABATEMENT Section IH NARRATIVE SECTION OF APPLICATION Section IV PROPOSED BUll.DING LAYOUT Section V AERIAL OF S1TE Section VI LEGAL DESCRIPTION OF SITE 3 6 Trammell Crow Dallas~Fort Worth ~'"~_~ U~ITId Copplr I~dustmes DeCember 12 1997 We are pleased to have the opportunity to subrmt this apphcauon for tax abatements lo your uouncll Trammell Crow started wor~ng with Umted Copper dunng the third quarter ct 1996 We suc~.esstully helped them secure a 110 000 square foot d, stnbutlon facility m Coppell Halt ct th,s tacd~ty ~s ,.urrently being used by one of their sister compames Cambndge-L~e Indusmes Cambndge-L~e Indusmes is a d~smbutor of copper tubing The balance ct the warehouse ~s used by Umted Copper tot d~stnbuuon purposes Along with a variety of other US businesses. Cambridge-Lee and Umted Copper are owned by IUSA or Umted lndusmes a privately held d~vers~fied Mexscan conglomerate The long term plan ct Umted lndusmes ~s to develop a Nanonal Headquarters m North Texas We have se~.ured the 91 acre s~te as a possible lo, at,on for them to l~ck-off their US developments The first phase ct th~s project will be to build the corporate headquarters tot United Copper Indusmes tbe~r nauonal dismbutton center arid the integrated copper wire and cable manufactunng facthty We feel that this facihty wdl serve as a flagship on the east side of Denton for future developments The braiding will be a showpteee wNch should act as a magnet for other developments m the area In addition to tbejobs created and the tax dollars generated we feel th~s project will be wewed as a statement towards our wdhngness to develop future business with Mexico We are v~ry excited about this project The econonuc mcennves offered will be a key part of the over-all evaluation of where to leeate this operation We look forward to working w~th you Smcerely. Seth T Kelly P' Dave D Noble 3 7 Trammell Crow Dalla {/Fort Worth ~ LJ~t~d Copp~ hd~s~nt~s APPLICATION FOR TAX ABA TEMENT Property Owner. -klbertson q [nc 250 ParkCenter Boulevard Boise Idaho 8'~726 Attn Make Baldner Phone # 208 39'~ 669'5 Under contract tot sale to TrammeQ Crow Company (Developer) 2200 Ross Avenue Smte 3700 Dallas. Texas 7~201 Attn Seth T Kelly Phone # 214 979 6144 Property Owner's Representative: (SEE ABOVE) Property Address: 2727 CJeeshng Road (Estimate of street address) Denton, Texas 76208 Located within: City of Denton Denton County Description of i~oJoct: Approximately 91 acres located at the northwest comer of 380 and Geeslmg The building will be apprordraately 420,000 square feet and shall face Geeshng Road (See attached s~te plan) Date projected for occupancy of project/initiation of operations: January 1999 3 8 Trammell Crow Dalla*/Fort Worth NARRATIVE QUESTION~AN5 WER SECTION OF APPLICATION H~storv and Philosophy of the firm. al Nature of products and geographic penetration. The primary products to be manufactured at tfus faclhty will be TYPE THHN conductor copper w~re tor the commercml constmcuon market and TYPE NM-B conductor copper wire for the residential construction market The facthty will have the capacity to produce 120 000 000 pounds ot each w~re type per year In addmon to the manutacmnng or these wu;es the company will complement their inventory with other related products that will be produced elsewhere The wdl dehver product to all 48 contiguous states Company b) F,nanclal statements for the past five years or hfe of firm whichever ~s shorter Because the concern ns privately held and has no desire to have the financml statements to be of pubhc record, we would kke to request a private meetmg to review the financial cond~uon of the enuty ProJect Specifications.' a) Provide plat of project including ali roadways, land use and zomng within $00 feet of the site. Legal description of the site is required. (SEE SECTIONS IV, V AND VI) b) Is the project ,, relocation or new f,,¢llity to expand operations? If relocation, give current location. This is a proposed new facility Umted Copper currently has a ~0.000 square foot dlsmbutloll facthty located at 1110 Executive Drive, Suite $00, Coppell, Texas 75019 This fa~lhty was leased February 15 1997 for a term of three years and slx months Umted Copper has a subtenant prepared to move into tlus facthty when they move thetr dlsmbutlon operations to Denton Trammell Crow Dallav/Fort Worth 39 ~ cl ProJect m~estment in real and personal property at the above site for years 1, 5, and 10 Real Property Personal Property I 5 ear I $10 000 000 $27,102,000 Equipment $37,500 000 Inventory Year 5 (Same as above + ~nflatmn) I Year 10 (Same as above + inflation) d) Project permanent employment for the next ten years resulting from the new tnvestment I Include esttmate average annual salary on new jobs. Employment ~ I Year I 260 $34,000 Year 2 325 $36,000 Year 3 390 $38,200 I Year 4 455 $40,000 Year 5 520 $42,900 ~ Year 6 576 $45,500 Year 7 628 $48,200 Year 8 680 $51,100 I Year 9 732 $54,200 Year 10 800+ $57,450 I e) What Is the total current payroll and the projected payroll when the project IS completed9 Cra'rent payroll $3,100,000 at Dtstnbutton facfltty in Coppell I Payroll at completion $8,840,000 per year i t~ Describe employment training requirements tf apphcable. The average worker will need to be lughly trained tn order to operate the state of the art producUon eqmpmant to be install m flus faclhty The company plans on worhng with local educauonal mstttuttons to help supply them wtth flus traimng I I I I 4 0 Trammell Crow Dallas/Fort Worth [~ water, etc ) usage for sears 1, 5 and 10 Project utlhtV tgas, electricity, G~ Ele~.tn¢ Yeac l 2{)4 tmlilOn ~u/tt/year 14 4 million kw/hfs %e do not expe~t the utlhty consumption to increase until future production tacihtles axe built on the ~te There are no ~peclal water requlrement~ h) Estimate the infrastructure (streets, sewer, water, ete ) requirements necessary to operate the new facility It will be necessaxy to bring both water and sewer hnes to the site Additionally Geeshng Road will need to be widened and paved t) Will the occupants of the project be owner or lessees ~ If lessees, are occupancy commitments already existing? It is undecided at this time r I) Give the name, address, and telephone number of the contact person Mr Dean Brown United Copper Indusmes l 110 Executive Drive Suite 500 Coppell, Texas 75019 PH 972 393 6979 Mr Seth T Kelly (Project Coordinator) Trammell Crow Company 2200 Ross Avenue State 3700 Dallas. Texas 75201 PH 214 979 6144 Mr Dave Noble (Development Coordinator) Trammell Crow Company 2200 Ross Avenue State 3700 Dallas, Texas 75201 PH 214 979 6'582 41 Trammell Crow DalladFort Worth ~dCopp~r Industries ~ Fhe community ~mpact of the project ISEE EXECUTIVE SUMMARY) Trammell Crow Dallas~Fort Worth 43 SCHEDU~ 46 SCIT~r~L'LE I to Contract of Sale ~.11 that certain tract or parcel of land situated m the MOREAU FORREST SURVEY, ~STRACT NO 417, Denton Count3,, Texas, being part of a certain (called) 3 465 acre tract deeded by Margsam Investment Co, Inc to James C Payne on the 4th day of February, 1965 and recorded m Volume 522, Page 501, Deed Records, Denton County, Texas, and being more fully described as follows BEGINNING at the Northeast coruer of smd 3 465 acre tract, deg 59 mm 2:5 sec West, along and near a fence on the l:.qq boundary [me of South smd 3 465 acre tract, a distance of 696 90 feet to an tron pm, ~CE South 85 deg 13 mm 12 sec West, along a fence a distance of 130 67 feet to a point, Tt-IENCE N'onh 00 deg 59 nun 25 sec East, a d~stance of 661 89 feet to a point tn the Southwest right-of-way of an easement to Texas Mumclpal Power Agency recorded tn Volume ! 167, Page 260, Deed Records of Denton County, Texas, TI-I;ENCE North 38 deg 18 mm 38 sec West, along smd easement nght-of-way a distance of 57 46 feet to a point tn the North boundaxy [me of smd 3 465 acre tract, TI-IENCE North 89 deg 43 mm 16 sec F. ast, along a fence a chstance of 166 44 feet to the PO12qT OF BEGINNING, and containing 2 114 acres of land, mom or less Tract II LOT lB of the MA.RG-SAM SUBDMSION, an Addmon to the City of Denton, Texas, according to the Replat thereof tn Cabinet H, Page 237, Plat P,~o~, Denton County, recorded Texas Tract All that certain tract or pamel of land sttuated m the M FORR~T SURVEY, ABSTRACT NO 417 and the T H I.IVING SURVEY, ABSTRACT NO 729, Denton County, Texas, being all of TRACT 2 of the MARG-SAM SUBDIVISION, an Adcht~on to the C~ty of Denton, Texas, according to the plat thereof recorded tn Volume 11, Page 25, Plat Records, Denton County, Texas, and being more fully described as follows 47 BEGLN'N'LNG at a round a'on pm on the south right-of-way of the Texas and Pacific Rm.[road at tts ,ncer~ecr~on u/th the m~ddle of M. mgo Road, sand comer being the North Northeast comer of sa~d Tract 2 un the T H Ltvmg Survey, TIq2E.NCE Souttl 27 dog 35 mm 18 sec East tn .%,hngo Road past the South boundary lane of the T H L~mg Sur~ev, wNch ts the North boundary [me of the M For'rest Survey and contmmng a d~tance or 3 i0 97 feet to an tron pm at a mm tn Mango Road, THENCE South 83 dog 15 mm 31 sec East m Mmgo Road a distance of 776 97 feet to a ra.droad sp~ke tn the freddie of Geeslmg Road and the East Northeast comer of Tract 2, TI-~r~ICE South 02 dog 19 mm 32 sec West tn Gecslmg Road a chstance of 1456 80 feet to an iron pm at the beginning of a flare of U S Highway 380, ~CIE South 41 dog 54 mm 15 sec West a d~tance of 156 52 feet to a right-of-way monument at the end of satd flare, TH'~N'CE South 80 dog 37 mm 58 sec West with the North right-of-way of U S I--laghway 380 along and near a fence a (hstance of 847 97 feet to a right-of-way monument, TI-i-~NCE[ South 74 dog 47 mm 24 sec West with the North boundary [me of sa~d I-I~ghway a distance of 101 06 feet to a right-of-way monument, TI-IENCI~ South 80 dog 38 mm 00 see West wah the North boundary line of smd I-hghway a dmance of 1140 23 feet to a fence comer at the South Southwest comer of Tract 2 and the Southeast comer of tract described m a Deed from James C Payne, Sr, et al to Paul L Lubbers, et ax, and recorded m Volume 604, Page 351, Deed Records of Denton County, 'I2tlK~CI~ North 00 dog 49 mm 39 see ~:a~t~ w~th smd fence a d~tance of 259 11 feet to a fence comer at the Southwest comer of a 3 465 acr~ tract described m a Deed from Margsam Investment Company, Inc to James C Payne, and recorded m Volume 522, Page 501, Decal R~cords of Denton County, TI-i'ENCEi North 85 dog 13 mm 12 sec East with a fence a distance of 199 71 feet to a fence comer at the Southern comer of said 3 465 acre tract, THENCE North 00 dog 59 mm 25 see East w~th a fence a distance of 696 91 feet to a fence comer at the Northeast comer of sa~d 3 465 acre tract, ~CE South 89 dog 43 mm 16 sec West along and near a fence a distance of 779 34 feet to an ~mn pm at the Southe~t comer of dedicated Mary Lee Road, TI-t:ENCE North 00 dog 45 mm 17 sec East a d~stance of 70 0 feet to an ~ron pm at the Northeast comer of Mary Lee Road on the South boundary hne of Tract I of Marg-Sam Subd~vmon as shown on the plat recorded in Volume 1 I, Page 25, Plat Records, Denton County, 48 TI--IE.'WCE North 89 deg -~0 mm 25 sec East with a fence a distance of 29,4 ¢8 feet to am n'on pm at the Southeast corner of Tract 1, THE.'q'CE North 00 deg 37 mm 05 sec E,~t along and near a fence a distance of 504 31 feet to an ~ron pm on the South right-of-way of the T & P ~¢E Northeasterly w~th the South right-of-way of the T & P P.~lroad around a curve to the left having a central angle of 10 deg 09 mm 33 sec, a chord of North 65 deg 37 mm 3~. sec East -~.1 58 feet, a faa,us of 2,¢93 69 feet, and an arc dastance of 4-¢2 16 feet to the end of sa,d curve, ~CE North 63 d~g 32 mm 48 s~c ~t w~th the South boundary [me of smd ra.tlroad t29~, 50 feet to the POINT OF BEGINNING, containing 90 6566 acres of land, more or less SAVE A~NI) EXCF.~PT THE FOLLOWING THREE PARCELS OF ~ SA~ ~ EX~E~ ~CT I ~ ~t ~ ~ct or p~l of ~d s:~ m ~e MO~U FO~T S~Y, ~S~CT NO 417, ~nton Count, Te~, being a p~ of a c~ (c~ed} 90 4 ac~ Trot ~ of S~ S~D~SION m th~ Mo~u Foist Su~ey, ~corded m Volume ii, Page 2~, Plat R~ord$ of smd Count, ~d being mo~ M~y described as follows BEG~G at th~ Sourest comer of T~ct I of ~d M~g-S~ Subdtvlston, ~o being ~e Southeast comer of a c~ed S 0 ac~ ~ct d~ded by ~ R Neble~, et ux, to Co~o~uon on the 27th ~y of S~tember, 1974 ~d ~co~ed m Volume 724, Page 190, D~ Records of Denton Count, Tex~s, ~C~ South ~ deg 37 mm 0~ s~ West a dis~ce of 70 2~ feet to a ~mt m the on the 24th ~y of l~u~, 1979 ~d ~o~ed m Volume 934, Pa~e 798, ~ ~eco~s of DentonmCount7, Text, ~CE Sou~ 89 ~ 43 ~ ~ ~ W~, ~o~g tho No~h boun~ ~e of ~d 4 0 ac~ t~ct a dist~ce of 294,~ feet to the Southe~t co.er of M~ ~e Road (dedtcat~ ~CE No~h ~ deg 4S mm 17 sec ~t, a dis~c~ of 70 01 f~t to the No~h~st comer of ~ENCE No~h 89 deg ~ mm 34 sec ~st, a dtst~ce of 294 ~ feet to the PO~ OF BEGI~G ~d con~nmg 0 474 ~res of ~d, mo~ or less 49 SAVE & EXCEPT TRACT ff ~.11 that certain tract or parcel of land s,tuated m the MOREAU FORiLEST SURVEy, ABSTRACT NO 417, Denton County, Texas, being a part of a certa.m (called) 90 4 acre Tract II of .X,L-kRG-SAM SUBDMSION tn the Moreau Forrest Survey, recorded tn Volume 1 i, Page 25, Plat Records of smd County, and being more fully descnbed as follows COMNEENCING at the Northeast comer of Tract I of smd Marg-Sam Subdlvmon, ~CE South 00 deg 37 mm 05 sec West along the r:~ast boundary line of sa,d Tract I and the Northern West boundary hne of said Tract 1I a distance of 175 59 feet to a point tn the Southwest right-of-way of an easement to TM:PA, recorded m Volume 1181, Page 955, Deed Records and at the POINT OF BEGINNING, THENCE South 38 18 38 Fast, along smd easement d~stance of 506 44 deg mLvl right-of-way a feet to a point m the North boundary line of a called 3 465 acre tract deeded by Margsam Investment Co, Inc , to $ C Payne on the 4th day of February, 1965 and recorded m Volume 522, Page 501, Deed Records, Denton County, Texas, THENCE South 89 deg 43 mm 23 sec West, passing at 43 80 feet the Northeast comer of a called 4 0 acre tract to Safety-Kleen Corporation, recorded m Volume 934, Page 798, Deed Records Denton County, Texas, a total distance of 318 26 feet to a point, THENCE North 00 deg 37 mm 05 sec Fast, passing at 70 25 feet the Southeast comer of s~td Tract I, a total d~stance of 398 94 feet to the POINT OF BEGINNING and containing 1 457 acres of land, more or less SAVE A~ND EXCEPT Legal Land Description for Parcel 17 BEING 3,382 square feet or 0 0776 acres of land, more or less, situated m the Moreau Formst Survey, Abstract Number 417, the City of Denton, Denton County, Texas, and being a part of Tract 2 of the Marg-Sam Subdivision, an addinon to the City of Denton, Texas, as recorded tn Volume I 1, Page 25, Plat Records of Denton County, Texas, and being a pan of the land conveyed to Alpha Beta Company, a Delawa~ corporation, by deed as recorded in Volume 1342, Page 149, Deed Records of Denton County, Texas, said 3,382 square feet or 0 0775 acres of land being more particularly described by metes and bounds as follows COIv~IZNCING at an iron rod found being the southwest comer of Tract 2 of said Marg-iam Subdivmon and the southeast comer of a tract of land conveyed to Paul L Lubbers and wife, Virginia L Lubbers, by deed as recorded m Volume 604, Page 351, Deed Records of Denton County, Texas, and being m the existing northern right of way [me of U $ 380, TH~ENCE ,North 80 degrees 43 minutes 02 seconds w-a~t along the exasung northern right of wa>, ~e of U S 380 for a d~aace of 468 3~ feet to an tron rod set m the new northern right of wa>, ~e of U S 3g0, at the POI~ OF BEGI2qNING, (1) ~CE North 74 degrees 16 rrtmutes 15 seconds East along the new northern nght of way line of U S 380 for a chstance of 100 64 feet to an tron rod set at an angle point, (2) TI-IHNC~ North 80 deg~es 43 minutes 55 seconds {:-u~t along the new northern right of way line of U S 380 for a chstance of 200 00 feet to an tron rod set at an angle point, (3) TI-II.ICE North 87 degrees 08 rn,nutes 05 seconds ~:~t along the new nonlaem right of way hne of U S 380 for a dastance of 100 63 feet to an tron rod set ua the erastmg northern right of way hne of U $ 380, South 80 43 02 seconds West the northern (4) minutes along existing Fight of way hne of U $ 380 for a ckstance of 400 00 feet to the POINT OF BI~GINN]2qG, and containing ~ area of 3,382 square feet or 0 0776 acres of land, more or less 51 ! SCHEDULE~ 52 SCHEDUL ~e; as c¢ Lc': 1, 2 and 3 of $OUTFRIDGE V'LLAGE SHOPc 'iS CENTER, an ~ Cao~reC E, $1,oe ~g:, ~lat Records, Den:on Count/, Texas ~CE. ~' (E~$E~E~' ESTATES) TRACT A, Be ng a %fac% or paros o" land containing 6.~8~0 acres, s,~ua~e: ,n the John Me,owen Survey, Abs%'ac: No 797, Denton tour%l, Texas, being a =a~= of that ce-sawn (called) 4.9~ a¢-e tract ~eeded by Rober= ~len N~cholsc-, et ux, to ~oh~ porter on the 27:H day of May, 1966, ard recorded ~n Volume ~8, Page $38, D,C D,R., same being out of a certain 18,7~2 a¢-e tract, as :e- plat Nosh Corporation, Cons~:~ng Eng:neers, ~n Denton, Texas, dated ..ne 3, 1985, sa~d 6,~ acres being ~ore particularly described by metes arc :ounds as COMMENCING at the Nor~-west corner of sa~d 4 g~ ac-e ~ract, sa~a oe~n9 on the $ou%hwes% R.O.W. l~ne or In%ers%ate H~ghway No. lEE, and being e so on %he East l~ne of 3 W Erw~n Subdivision (recorded ~n Volume 337, Pace D,C D.R.); THENCE. South 39 degrees ~2 m~mu%es ~ seconds Eas%, along sa~d Sou[hwest R,O.W. line, a dis=anne of 58.6~ feet [o an angle point, THENCE, $ou%h 47 degrees 27 m~nu%es 8~ seconds East, continuing mlong sa~d Southwes% R.O.W, line, a dis[anne of 34.2e fee~ to a point, same oelng the most Easterly corner of a certain ~.127 acre tract ard also be~rg [he point of ~n[ereec%ton of ea~d $cu=hwe$% R.O.W. l~ne w~th %he ~eeterly R.O d. l~ne R~dgeway Dr~ve (based on a ~tdth of 8~ Feet); THENCE, South1 47 degrees Z? mtnu%es e~ seconds East, continuing a,ong ma~d Southwest R.O.W. l~ne, a d~stance of 8O.e~ fee~ to a point of ~r:a-sec=3on of sald $ou[~west E.O.W. ~ ~e w~ch =he Easterly R 0 W l~na of Sale ~dgeway ~-~';e, same being the =cs: Northerly corner of a ce-sawn ~.772 ac-e tract (Les., Block I m= the :snn~ng Subd~son), T~E~ICE. $c~:~ 47 degrees 27 m~nu:es ~ seccncs Eas:, continuing a cng sa~d Southwest ~ $ W. i~ne, a d~stance of 23~ 5~ Feet to a~ angle po,-:, ~HE~CE. $ou:h 5~ negress ~7 m,nu~es 26 seccnds Eas:, con%tnu~ng a cng sa~d $o~:~wes~ R 3 ~ l,ne, a :,asante oF 452.34 Fee~ Co an angle po T~ENCE, $ou=h 47 degrees =7 m~nutem ~I seconds Ess:, ¢ont~nu~9 a.on9 sa~d So~s-wes~ ~ 0.~ l~ne, ~ :~s;ance oF 48 ~7 rea: to ;r~ mos~ Nor:-s'~y corner anc :OZ~T OF mE,INNING :' :he trac= here~n desc-~bed, THENCE, $o~:n 47 degrees ~? n~nu[es ~i seconds Ess:, con:tnu~ng a crg sa~d 53 t unit rrm it t ................. l1 ....... ~ IIl~ll IIII II r ~ 0 W I 'e, a dissents of 33! 32 feet to a point for the most ~ascerly corner 7N~NCE, South 4~ degrees 43 ~lnutes 54 seconds West, deparSlng s~d Southwest ~ 0 ~ I ne, a d~s~ance of 3~I.~7 Fees to a po,hr for corner, Tr~CS, North 45 degrees 16 m~nutes 86 seconds Wes%, a distance or 9 ~8 fees CO a ~0 P: for co-~er, T~E~ICE, So~t~ 44 regress 43 ~ rutes 54 secants West, a distance or 17~ ~0 rest tO a poln~ for corner, THENCE, $o~h 00 degrees 15 mmusss 06 seconds East, a dlsSance c' !!.~1 Feet to a po~nt For corner; THENCE, $ou~h 44 degrees 43 m~nutes 54 seconds Wes:, a d~sSance o' !I~ 08 Fees tO a pOl~: For co~ner, THENCE, $ou~h 15 THENCE, South 89 degrees 43 minutes 5= SecQnds ~es%, a dig%anco ¢' ~5~ 94 fee% :o a point for [he mos: Sou%hess% $ou%hwesS corner of ~he =rat% ners~n described; THENCE, Nor%h ~ degrees 53 m~nu%es ~8 seconds WesS, a d~stance or 446 39 fee% to a po~nc on %he South ilne of said 4.9~ acre trace, THENCE, Nor=h 89 degrees 17 m~nu%es ~8 seconds West, along se~d $ou%h l~ne, a d~s%ance of 185.18 fee% %o a po~n% on the East R.O.W. l~ne of said Rldgeway Dr~ve, being ~he mos% Westerly $ou%hwes% corner of [he [rat% herein described; THENCE, North ~ degrees ~5 m~nu%es 14 seconds Woes, along said East E.O.W. THENCE, North 89 degrees 54 m~nutes 46 seconds Eas~, departing ss,d East R 0 ~. 13ne, a distance of 21~.74 feet to a po~n~ for co~ner; TnE~ICE, $ou=h 45 degrees ~5 m~nu~se 14 seconds Eas%, a d~s%ance or 3~ 8~ feet SO a pOin~ for coPne~; TdZ~lCZ, $¢.:h 8~ degrees ~5 mlnu:es !4 seconds Ess:, s dlsSance or ~Z~.~7 fees T-~CE, ~¢-=h 44 eagrees 43 mlnu~es 54 seconds Ease, a d~s~ance cr 290 ~ fees CO a pO,~Z for CO~SF, THENCE, Ncr=h 44 degrees 43 m~nutss E~ seconds Ease, a dls%ance ¢~ 348.45 feet acres (~5.,35~ sq.are feeS) of land, ~ore o- less 54 ~c~cwan $~-~ey, Abstract Nc 797, 0erich Count/, Texas, be nga :ar= of Chat certain (ca']ed) 4 ~ acre t~act deeded by qcoer: ~len N~c~c~s~-, et ux, to ~ C ~,~ , s=me be'ng o~: of a cer:a,n 1S 7L2 ac-s :race, as ~e' ; a: cfi Nasa Cor~ora~ or, Consul:~n~ ~ng~neers ,n Oenton, TeYas, dated June ;, ,~83, sa~d 5 4303 ac'e tract being ~cre par:,calar17 descr~beo by =etas ant :ounds as ~ollows: ¢0~HENC:~C at the Northerly cor~er o' sa~d 4 ~ ac-e t-act, sa~e being on c~e Southwest ~ 0 ~, ~ne c- inters:acs ~gh~ay Ho 35~ and also be -g on the East boundary 1,ne of t~e ; W, Erw~n Su~d,v~s~on (rocor:ad ~n Volume ;;7, Page THENCE~ S~u:~ 3g degrees ~2 m~nu:es {a seconds East, leaving sa~c boundary i~ne of g.W. E-w~n Subdivision and along sa~d Southwest ~ 0 ~ 1~ne of Intere:a:e H~ghway No, 35E. same being the North boundary l~ra or sa~d 4 9{~ acre tract, a d~scance of 68.6{ feet to an angle THENCE, South 47 degrees 27 e~nutes ~g seconds East, continuing a erg sa~d Southwest R,O,W. l~ne, ease being the North boundary l~ne of sa,o 4 9~ acre tract, a d~$tance of 34.2~ feet to a point, sase being the ~ce: [aeterly corner of a certain ~ 127 acre tract and also being the porn: or ~ntarsect~on of sa~d Southwest R O.N. l~ne w~th the Westerly R 0 ~, 3qne of R~c~eway Or~ve (based on a w~dth of 8~.~{ feet); THENCE, South 47 degrees 27 e~nutes ~ seconds East, continuing along sa~d South~elst R.O.W. l~ne, sase being the North boundary l~ne of sago 4,9~a acre tract, a d~s:ance of 8~,~a feet to a poJnt of ~nterssct~on of sa~d Southwest R,O.~. l~ns .~:h the Easterly R.O.W, l~ne or R~dgsway Or~ve, sase being the ~ost Northerly corner of a certain ~,772 acre tract (Lot 1, Slock ! of the Ounn~ng'S~:d~v~$~on)~ THENCE. So~:h 47 degrees 27 a~nutes a~ seconds Ese:, continuing a,o~g sa~d Scut~west ~ 0.~. l~ne, sase be{rig :he North bounder! l~ne of sago 4 9~g acre tract, a o's:anco off 2gS.3~ feet to the POINT OF SE:iNNING of the tract here~n descr~oed, T~NCE,,S~:~ 47 degrees 27 a~nutes ~g seconds East. cont~nu,ng along sa~d South.es: ~ 0 ~ 1,ns, sa~e being :ne NOTCh bouncar'~ l~ne o~ sa~: 4 ~ acre trac:, a c stance of ~ ~ feet to :ne Nor:haas: cc--er o~ sa~d ~ ~ag acre ?ac:, sara ~e~ng a co-nar of :he :race here,n des:-,bed; THEWCE, ~ '~ .¢ ....~3 degrees 4? n~mute$ 25 sscords East continuing = cng sa~d SouC~es: { ~ ~. l~ne, a ~s:ance cP ~52 34 Peet :oa corner of :~e c'acC here~n THE~CE, Sc.:~ 47 ce~reas 27 m~nutes g: secord: ~ast, continuing a ~ng sa~d 55 :he tract nere~n cesc- ,,~NC., Sc.th 44 :egress 43 mirth:es 54 seconds Nest, leaving sa,o Southwest R O N llne, a d,s:ance :F 348.48 fee: to an ~n~erlor corner of 'he :rat: THENCE, S¢~:h 4~ ~egrees LS m~nutes ~6 secorcs East, a d~stance :r 37 ~8 Feet to a cot-er of %re tract ~ere~n describe:, iHENC., South 44 degrees ~$ m~nutes 54 secords ~es:, a d~sSance : 29~ ~O fee: to :he mos: Southerly oor~er of the tract he-e~n described, THENCE, North ~a degreme ~$ m~nutes !4 seconos ~est, a d~stance :r 225,~7 feet to an lntarlor corner ¢' :he tree: here~n describer, THENCE, North 45 degrees ~5 minutes 14 seconds Nest, a d~stance c- 38,88 feet to an interlor corner ct :he tract hereqn desc-qbec, THENCE, South 84 degrees 54 m~nutes 46 seconds Wes:, a d~s:ance : 2..,74 feet to a point on the ~ast ~ O.W. line of R~dgeway Or~ve, same he,nc :he most Westerly Southwest corner of the tract here~q described; THENCE, North ~ degrees ~5 e~nutes 14 seconds Wes:, along sa~d ~asterly E,O.~. line of R~dge~ay Drive, a dis:anco of 464.9[ feet to the ;¢~n: of curve of a curve to the r~gh: hav~n9 a central angle of 42 degrees 38 a,nu:es seconds, a radius of $2~,7[ feet and a leng:h d~stance of 245.334 tee:~ THENCE, in a Northerly d~rectton, continuing a~on9 eald Easterly ~ 0 N. line of Rldgeway Drive, follo#~ng ea~d curve :o the r~gh:, a length d,s:ance of 2~.334 feet to a point on the arc of sa~d curve to the r~ght, same being the east ~esterly Nor:hwest corner af the tract here~n descrtbed~ THENCE, South 71 degrees 13 m~nutes [5 seconds East, leaving sa~d Easterly R,O.W. l~ne of R~dgeway Ortva and along the South boundary l~ne of sa~d 1,772 acre tract, a d~stance of 144.11 feet to an ~nter~or corner of the tree: hare~n THENCE, Nor:h~degrees 24 minutes ~7 seconds East, along :he E~s:erly boundary l,n~k~latd a.772 acre tract, a d~s:ance of 15{.~ fee: :oa on the Southw~'q.O.~, I ne of sa~d inters:asa H~ghway No 35E, same being :ha mrs: Eas:erly corns- of ea~d ~.77~ ac-e tract, and also being :ne POINT OF 8EG:NN:N~ ¢~ :~e sfac: -s-e~n desc-~bad, containing w~th~n :hess =etas and · bounds S,43~$ acres (2~:,.~$ square feat) of land, more or less T~^CT C, ~e,ng a tract or ~arce ~- land conta n~rg 5 ~971 ac-es o~ land, s,tuated in the John M¢$owan Surve). Abstact Nc. 797, Denton C¢~nty, Texas, being a part of that ce-tarn (caller' 4 9~0 ac'e t-act deeded by ~obert Glen ~l cholson, et .~,,, ~=rta- on :-~ ~7~h dav or ..~o, ant recorded ~n ~ume 538, 56 oage $35, 0 C.O R.. ea-e being out or a certain i~ 7!2 acre tra¢~, as ~er plat of Nash Corooratlon, C~-sult~ng Eng'neers ~n Denton, Texas, dated June 1~83, sa'o 5.2971 ac-e 'rac~ be'rg more ~arc~c~lar~v dee¢-lbed Dy ~etes and oounds as follows, COMMENCZNG at tbs Nc-~-arly corns~ of said 4 9~ ac-e tract, sane De'rig on the Southwes: ~,0 ~ ~ne or Zn:ers:a:s H~ghway No 35~ and also be'-c on :he east boundary l~ne or the . ~ E'~n Subdivision ('ec:':e: in vol.se SS7, Page THENCE, $ou:h 39 deg-ees ~2 m~nutes ~ seconds ~as:, leavxng sa : bourdary line of J.W ?w~n Subdivision and along ea,d Southwest ~ 2 ~ l'ne of ~nteretate Highway S~E, same being the Nor:h b¢.rcary l~ne or sa o 4,900 acre tree:, a distance of ~8.~ feet to an angle point, THENCE, South 47 degreee 27 m~nutes ~8 seconds Ease, cont,nu,ng along said Southwest R.O.W. l~na, same being :he North bounder! 1,ne of sa~c ~ 9~ acre tract, a ~stance of 34,2~ feet to e point, same be ng :he mos: corqer of a certain 0 1:7 acre tract and also ba~n= she point or ~n:ersect~cn of sa~d Southwest R.O,W. line with she Westerly R.O J, l~ne of R cgeway Drive (based om a width of 80.~ feet); THENCE, South 47 degrees 27 m~nutas ~ seconds Ems%, continuing e,ong sa~d Southwest R.O.W. l~ne, same being the North bounda-~ i~ne of sa o 4,9~ acre tract, a distance of 8~,~ feet to a point of ~nte-sact~on of saso Southwest R.O.W. l~ne with the Easterly R.O.W. lime of sa~d R~ogeway Dr~ve, same being the most Northerly cormer of a oar%mtn ~.772 acre tract (Lot 1, Block 1 of the Dunning Subdivision) as recorded ~n Cabinet "C", Pages 355 and 35~, D.¢.P.R ; THENCE, South 47 degrees 27 m~nutes ~ seconds East, continuing a,ong sa~d Southwest R.O.W. l~ne, same being the North boundary l~ne of sa~d 4.g~B acre tract, a distance of 2~.5~ feet to an angle point, same being the Northeast corner of said 4.9~ acre trac~; THENCE, South 53 degrees 47 m~nutee 26 seconds East, continuum9 along said Southwest R,O.~, l~ne, a d~etance of 4S2 34 feet to an angle point; THENCE, SoutJt-4~ degrees 27 m~nutee ~[ seconds Ems:. continuing along said Southwest R.~d[l~-l[ine a distance o~ 37g.49 feet to tre POINT OF ~[GINNING of the tract T~ENCE, South ~d~jreas ~? minutes Q~ seconds Ems:, cont~nu~rg alor9 sa~d Southwest R.O.W. line ~ :,s:ance of 348.6! feet co s ~o~nt for c=rqsr of the tract here,n describer: THENCE, So6th ~4 degrees ~8 ~tnuces 43 seconds Eas~, a d~stanoe or 85.!~ feet to an in:e-,or corme,? :he trec: ne-eln describer, same be~mg :n the West R O.W l:re of a ~ ~:o: road eaee~e-~ (recorded ~r Volume 333, Page 19, DC.OR.), THENCE, Sou~9 ~ deg°ees ~3 m~nutes 21 secords East, along the Wes~ R 1~ne of sa~d ~ foot -:ac ~.O.W. easemeqt, a d~s:a-:e o? ~$4.53 ~ee: to a 57 Co the ~os: $ou:h~es:e-ly corner of the tract here~ desc~lbe~, T~E~¢E, ~oc:~ 3g degrees L5 ~n~:es a6 seconds ~es:, a ~stance of 4~.75 PeeC Co a corner of the ~fac: he~e~n described, Co a corner of [he tr3c: here~n described, TH.~C., ~orth 44 degrees 43 m~nutes ~4 seconds Eas~, a d~s~ance :r [70 ~$ feet to a cor~er of the Ired: here~n described, THENCE, South 45 degrees [5 minutes ~ seconds East, a d~scance ct ~ ~8 fee~ to an tnter~or corner o' [he CFac= here~n desc~be~, THENCE, Horth 44 degrees 43 m~nu=es 54 seconds East, a d~s=ance c- ~E~ ~7 fee: Cc a ~eln~ on the Southwest R.O.~ l~ne oP sa~d [~:a~stace H~gh~ay No ~SE, same being the POINT OF 5/GINNING of the trod= here.- descr~oe~, oo~:a~n~n~ w~thtn these me:es end bounds 5.297[ acres (23~.744 square fee:~, o~ la~d, more cF less. 58 ~,F%T BY 4-20-08 , 3 30PM ~940~497239 n F]RST SOUTHWEST COMP April 20, 1998 Mayor lind CRy C tty o¢ 215 East McKmncy Denton, T~ 72601 Y~ ~ ~ ~ ~a d~~ ~ ~ ~a ~ ~~,l~ w~m ~C~ ~ Is ~ ~h C~m h ~p~ da~u~ ~ ~ o~ ~ ~ h ~n~u~ ~C~s~I~ ~ (v) a ~ ~ n~ ~ ~91 ~5 ~ ~'~ ~ ~1~ W~ ~ ~_: II~VI'"CrM.EN'I BANKL~'~ SIN(.I! 1¢)40 i ?o~ ~l~/~ ,ive~m~ · .~ ~'~ $o~ · D~#a~, I'm~ ?$201-4~$2 · 214-~$-~-~ I· · ~i,r#.$ ?~2 59 ~ent a~d Board of Director9 Trinlty Rl~r Authority Sun~ 26, 1997 (¥i) copies of' mvo~..es Jot five p~e~es of eqmpment by IUSA tot dohve~ to thc £ncfl~es m Umted Copper's busu~.~ plan a to peodu~ and d~s~huto ¢op~er wu~ ~or the oomm~c,al and res*dontmi construct]on mmto~ m ~be 48 co~uous ,~'I~ w~m lbo Un,ed ~ Addgdonally, 1he C. ompany will d~ribm= mlalmt produom, IXoduc~l = otMr Iocaltun% from tho Denton, Tcxas fac~h~y The C:oml~ny ~s flntmood by m~ uqum/mtc~e~t of IUSA. Indtlflrla~ Unld~ of' Mcxloo ([US, A) 'lbo potent ot'[Jnr0:::d Copp~ Add~bunall¥, IUSA flnano~ tho mvmlory and wolkms eaptlal ot tho Compeny vn~,~lt~d m~on~on of lira Coml~my n~ Cempmy ss ~um~tly 5omg tmd~xl by Delodte & Touche F°r the PorPo~ of ibm hml~ mv~w ~t ~Jym, w~ h~w ~mflmd ~ tk~.~w.a~ d,~-ibed e, bo~ ~ fact. We imvo lhdher a~sum~d lhnt lhm~ has not be~: ~y matm~ ~ ~ m ~m btmmms ~ndllim~ flnmoes ~ Pm~ee0~ ~m' e~o Conq~y subs~lu~ te ~e d~ ~F tl~. fc~eln~ ma~!~ We have vi~il~i ~ho ~ fl~mli~i~ m ¢':c~ le~ ~ I~vo we ml~rwev~d the ~ and o£the Comlw~y ** l,'e~ 28, 1998 Some o£lho m~lor faomrs we imve oonside~ed In our an~ly~ie are ~o~ ou~ below I ']~° C°ml~Lv w~ ~ curr~ c4~ m CopI~II, I ~ as a ch~'lbutloe oompe~y 2 IU~, ~ P~m~ o~mPm~', ~no~d t~ h~'o n;v~mnm e£ ~18~ 6 m~lhon and S754 7 mdl~ ~ 1994 taxi 1 ~H,~6, xesp~, taxi $6~ 5 m~iion m Ih~ ~.~ reno moetl~ of 19~j7, 3. IU~. m~ Io hm, e mve~um of ~(12! 9) mlllmn md ~28 7 rodime ~n ~9~4 m~d 19~6, m~y~ and ~Z6.6 mllllen in ~he fim~ etno m~m~ of I ~/, 4 It JSA rty~,~h~g~l ot-~r/43 mlllkm m 1994 m~d $960 mdh~ o~ Sq~omber 30, l qt)S, 5 IUc~A ~ workm~ oql~lal o£$203 m~llo~ m 1994 and ~.~ mdhon mt ~k~cmber 30, 19¢Y7, 6 Umt0d Colq~ rol~l~d n~ income o~S80~ litmmmd m 199-/rmm ~ o1~$43 ~ mdUcm, 7 la I1~ flr~ lw~ mcmth~ of 199~ Un~d ~ mpo~d & k_~_ of $194,000 ~ nn, mu~ ot'~,6 4 million. At your ~quos~ Om' upmmn i~ bM~ sot0~ upo0 tho ~0f~cnn8 Illluted reviow and itlll~m sm of l~eb~ql~ 60 bENT ~Y ~-20-98 ~ 80P~ ~9403487239 ~ 4 ~ Pr~ideut anti Board of Directors Trinity Rlv~ ~ulltorlty June 26, 1~7 tho n~eement, it m ~,3r c~mmn ~ a~ or February 28, ! 998, thc financial msotm~s or' I1~ ('ompm~y are ~uffiOlOllt to I~ovldm r~asortable asaurazlt,es fl~t nJJ obliBnttofls of the ~ ~nt a~nent will ~ m~ lilt ~mn ~ ~i~i m ~m ~ m ~ly ~ ~e ~neflt of~ C,~ ~ may ~ ~ mh~ ~n m ~y who~ ~ m ~ ~ ~{~ ~ ~ m ~y ~mt or ~er ~ 61 DETENTION POND , ' - M~UF-ACTURINO- - 62 EXHIBIT E ORDINmCE NO AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH UNITED COPPER INDUSTRIES INC SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE, SETTING FORTH THE VARIOUS CONDITIONS PRECEDENT TO UNITED COPPER RECEIVING THE TAX ABATEMENT, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH UNITED COPPER INDUSTRIES TO PROVIDE ELECTRICAL SFRVICES FOR A MINI- MUM PERIOD OF FIVE YEARS, PROVIDING FOR A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, on the 3r~ day of February, 1998, after a public heanng duly held in accor- dance with §312 201 of the Act, the City Council passed Ordinance No 98-016 (the "Ordi- nance'') establishing Remvestment Zone No I, City of Denton, Texas as a commercial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chapter 312, Sub- chapter B of the Texas Tax Code (the "Act"), and WHEREAS, on the 12th day of December, 1997, United Copper Industries, Inc submit- ted an application for tax abatement with various attachments to the City concermng the contem- plated use of certain property located within the Zone, and WHEREAS, the City Council finds that the contemplated use of the premises and the contemplated improvements to the premises, as indicated by United Copper Industries, Inc are consistent with encouraging the development of the Zone in accordance with the purposes for its creation and are in compliance with the Denton Tax Abatement Policy, and WHEREAS, the City Council deems it m the public interest to enter into a Tax Abate- ment Agreement w~th United Copper Industries, Inc, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS ~ That the findings contained in the preambles to this ordinance are true and correct and are adopted as a part of the whole ordinance ~ That the City Councll finds and determines the following I That the contemplated use of the premises and the contemplated improvements of the prem- ises, as indicated by United Copper Industries, Inc are consistent with encouraging the de- velopment of the Zone in accordance with the purposes of its creation and are in compliance with the Denton Tax Abatement Policy 2 That the City Council finds that the improvements sought by United Copper Industries, Inc within the Zone are feasible and practical and would be a benefit to the land to be included in the Zone and to the City after the expiration of the Tax Abatement Agreement to be entered into with Umted Copper Industries, Inc 3 That the City Council finds that the Tax Abatement Agreement contains all the terms which are manditorlly required to be included m any tax abatement agreement under §312 205 of the Act 4 That, m accordance with Tex Tax Code §312 2041, the City Council finds that not later than the date on which the City Council considered this ordinance, and not later than the seventh day before the date the City enters into a Tax Abatement Agreement with United Copper In- dustries, Inc, that the City Manager, through the D~rector of Economic Development, who are hereby designated and authorized by the City Council to give such notice, delivered to the presiding officer of the Denton Independent School District and Denton County a written notice that the City intends to enter into this Tax Abatement Agreement with United Copper Industries, Inc, and that this notice included a copy of the proposed Tax Abatement Agree- ment in substantially the form of the Tax Abatement Agreement attached to this ordinance ~ That the Mayor, or in his absence, the Mayor Pro Tern, is hereby author- ized to execute a Tax Abatement Agreement with United Copper Industries, Inc, substantially m the form of the Tax Abatement Agreement which is attached to and made a part of this ordinance for all purposes as if written word for word herein Provided, however, that the Mayor shall exe- cute the Agreement simultaneously with the execution of similar tax abatement agreements with United Copper Industries, Inc executed by the Denton Independent School District and Denton County so that all these tax abatement agreements take effect at the same time ~ That the Mayor, or m his absence, the Mayor Pro Tern is further author- lzed to execute the attached contract between the City of Denton and United Copper Industries, Inc to provide exclusive electric service for a period of not less than five years, in substantially the form of the Electric Service Agreement, which is attached to and made a part of this ordi- nance for all purposes as if written word for word herein ~ That the City Council hereby instructs and authorizes the City Manager to inspect, audit, and evaluate the progress of Umted Copper Industries, Inc to determine if it has met all of the conditions of the attached Tax Abatement Agreement prior to the tax abatement going into effect ~ That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent junsdmtion, such holding shall not affect the validity of the remaining portions of this ordinance, the City Council of the City of Denton hereby declares that they would have enacted such remaining portions despite any such validity ~ That this ordinance shall become effective immediately upon its passage and approval 64 PASSED AND APPROVED th,s th¢ ]~j:~;/L~ dayof & ,1998 JAC~I~LER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY ERBERT L PROUTY, CITY ATTO~EY 65 EXHIBIT F UI;~IMOUS COIHMmm'~" 17; LIEU OF SPECIAL l~a'l'ING OF BO;~.D OF DIRECTOBS OF UI;I'~"~73 COPPER INDUSTRieS. IlHC. The un~breiHn~d, oon~titutinH all of t~ of ~it~d Cop~r I~es~ I~. a ~ oo~t~ (t~ "Co~ti~"), ~ - f~e ~ ~ff~et ~ if ~p~d ~ ~ vote of P~$OLvmm, t~at J. Dean Bro~n~ as Seoreta~j and General ~er of porat~on, i, hereb~ aut~oriaed to ~o~te and deliver on behalf oF the ¢orporation- oertain Ta= ~b~t~m~nt Agre~te indivia~a~y betaken ~ O~t~ of Denton, Denton -- Co~t~j and ~he D~n~on Independent So~ool Distrzot and the Corporation on suoh terms as J. Deen ~ dee~s aooeptab~e. Filed foe Record in: DENTON COUNTY, TX HONORABLE TIH HODBES/COUNTY CLERK On Dec 30 1998 At ll:Elam Doc/Num : 98-R0117559 Doc/Tx~e : AGR Recording: 185.88 Doc/Mgmt : 6.80 Receipt fi: 46898 Deputy - SHELLCY STATE OF TEXAS § COUNTY OF DENTON § ELECTRIC SER VICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND UNITED COPPER INDUSTRIES, INC THIS AGREEMENT is made and entered into by and between the City of Denton, Texas, a Texas municipal corporation ("DENTON"), and United Copper Industries, Inc, a Texas Corporation ("UCI"), each party acting herein by and through their respective duly-authorized governing bodies, officers and representatives WHEREAS, DENTON and UCI intend to execute a "Tax Abatement Agreement Between The City of Denton and United Copper Industries" ("Tax Abatement Agreement") on this date, which among other things, provides for an ad valorem tax abatement under the terms and conditions set forth ~n the Tax Abatement Agreement, and which Tax Abatement Agreement will result m economic benefits flowing to DENTON by reason of UCI estabhsh~ng its plant in Denton, and WHEREAS, Paragraph I F of the Tax Abatement Agreement prowdes that DENTON and UCI enter into a long4erm agreement for the prowsxon of electric service for a term of no less than five (5) years, simultaneously, on the date of execution of the Tax Abatement Agreement, and DENTON and UCI desire to enter into this Agreement and the Tax Abatement Agreement simultaneously WHEREAS, UCI requires electric energy for the operation of ~ts plant facility, including, but not limited to the approximate 300,000 square foot building or buildings described in the Tax Abatement Agreement and in Exhibit "D" to that Agreement, located at the Northwest corner of the intersection of U S Highway 380 at Oeeshng Road, in the City of Denton, Texas ("Plant"), to be constructed, and its equipment and other improvements to be constructed on the premises which will be owned or leased by UCI, and UCI has provided DENTON with evxdence that the cost and reliability of electric service is critical to the successful operation of its Plant, and WHEREAS, UCI believes that it is in its best interest to receive electric service under the terms and conditions of this Agreement, and DENTON is wflhng to enter into a long-term Agreement with UCI to provide all the requirements of power and energy which are required for UCI's operation of its Plant, NOW THEREFORE, in consideration of the mutual promises and covenants contmned herein, the amounts to be paid to DENTON hereunder, the benefits conferred to DENTON and UCI hereby, and other good and valuable considerations, DENTON and UCI hereby AGREE as follows I TERM OF AGREEMENT A UCI and DENTON hereby agree to a seven (7) year electric service agreement This Agreement will commence effective ~e//~/'~.~ , 1998, simultaneously wath the executxon, of the Tax Abatement Agreement tDunng the first five (5) years of the term of this Agreement, DENTON agrees to provide all electric service needs (within the City of Denton or outside the c~ty limits where currently being supplied by Denton) of UCI, and UCI agrees and covenants to unconditionally remain as an electric service customer of DENTON, and to purchase all of Its electric power and energy requirements exclusively from DENTON B Upon the expiration of the first five (5) years of the term of this Agreement, for the remaining two (2) years of th~s Agreement, UCI shall have the option to select another electric service provider to prowde for its needs, PROVIDED, HOWEVER, DENTON shall retain a right of first refusal to match any and all such bona-fide offer(s) from such other electric service provider(s), and thereby re'man UCI as DENTON's electric service customer for the remmnmg two (2) year term of th~s Agreement For purposes of the operation of this sub-paragraph, the term "bona-fide offer" is a proposed offer or agreement in writing, dated, and signed by a duly- authorized officer or representative of another electric service provider and UCI UCI shall notify DENTON of any and all such bona-fide offers, m writing, mgned by a duly-authorized officer of UCI The written request and notification shall provide that DENTON have no less than forty-five (45) days to evaluate the offer or agreement m order to exercise Its right of first refusal, and which written offer or agreement commtmlcated by UCI to DENTON shall state that the offer or agreement received from such other electric service provider is bona-fide, is m full force and, effect, and that UCI ~s ready to take action to approve the offer or proposed agreement PROVIDED, HOWEVER m the event that UCI and another electric service provider who has executed a bona-fide written offer to UCI, have entered into a written confidentiality agreement, then UCI's obhganon to DENTON under this subparagraph shall consist of notifying DENTON, in writing, that UCI has received a better offer respecting electric service rates, and will provide DENTON w~th as much mformat~on as ~t lawfully can under the terms of the confident~ahty agreement UCI will utilize its best efforts to negotiate an agreement which will allow UCI to inform DENTON of the basic terms of the competing offer The written notice shall provide that DENTON has no less than forty-five (45) days to respond to UCI by either making a written offer to UCI m efforts to better the unknown ¢ompenng electric service provlder's offer, or responding that DENTON wall not make an offer, thereby extmgmshmg its right of first refusal arising under th~s subparagraph C Upon expiration of th~s Agreement, UCI may take electric service from DENTON under any then,effective utility service rate or contract Upon termination of this Agreement, UCI may also, at its option, elect to take all or a portion of its electric service requirements from an electric service provider other than DENTON D In light of the uncertmntles created by the poss~blhty of comprehensive electric deregulation leg~slatlon being passed into law and impacting upon DENTON, in the event that DENTON should sell or otherwxse d~spose of ~ts entire electric system (generation, transmission, Electric Servtce Agreement - Page 2 and distribution) during the term of this Agreement, then this Agreement, at the sole d~scretlon of UCI, can' be terminated on the date of such sale or d~sposmon Any termination of this Agreement arising under th~s subparagraph shall not be considered as an act of default by UCI under Article VIII herembelow, or otherwise, and hkewise, shall not be constdered as an act of default by DENTON under Article IX herembelow, or otherwise II CONDITIONS OF SERVICE A DENTON agrees to use reasonable dthgence to sell and deliver to UCI all power and energy which ~s reqmred for UCI's Plant for the term of th~s Agreement Electricity provided by DENTON shall be dehvered to UCI at a point on UCI's Plant premises Service will be nominal 13,200 volts, three-phase, and 60 Hertz per second B UCI agrees that electrical energy prowded by DENTON may have reasonable variation in frequency and voltage within applicable American National Standards Institute ("ANSI") Gmdehnes To the extent that damage to UCI's eqmpment is sustamed during the term of th~s Agreement, which damage ~s proximately caused by a fluctuation ~n voltage over and above the apphcable ANSI Gmdehnes percentage, and not caused by an Electric Rehablhty Council of Texas ("ERCOT") transmission grid problem beyond Denton's control, DENTON shall be responsible for the reasonable cost to repair such damage C UCI agrees that ~t will diligently exercise ~ts responslbthty to hm~t harmonic flow into the DENTON electric distribution system In particular, distorted current injected by UCI Into DENTON's electric d~stnbutton system shall be hm~ted to values, in pement of fundamental, as set forth in the Harmomc Order table and other provisions contained ~n Institute of Electric and Electromc Engineers ("IEEE") Standard 519 (1992), which hannomc current levels allowed are based on the size of the load w~th respect to the size of the power system to which the load is connected To the extent that damage to DENTON's electric distnbut~on system equipment ~s sustmned, which ~s proximately caused by d~storted current injected by UCI into DENTON's electric dlsmbutlon system, at levels exceeding the permitted harmonic current level as set forth in IEEE Standard 519 (1992), then UCI shall be responsible for the reasonable cost to repmr such damage D DENTON shall be obhgated to provide an alternate power source to the UCI premtses under th~s Agreement E During the term of th~s Agreement, DENTON shall be the sole source of electric serwce to UCI's Plant UCI shall not construct, obtmn, or utlhze any factlmes of, or enter into any agreement for electric service to its Plant wath any suppher of electric energy other than DENTON Electricity dehvered by DENTON under this Agreement shall not be resold or redistributed by UCI to any third party Elecmc Servme Agreement - Page 3 F UCI agrees to take and use all electricity exclusively for the operation of its Plant during the period of this Agreement UCI agrees to notify and d~scuss with DENTON, any changes in motor s~ze or equipment, and operating characteristics, prior to making a change at UCI's Plant III APPLICABLE RATE A The rate(s) charged respecting the electric services provided by DENTON to UCI pursuant to th~s Agreement shall be the General Service Large (Schedule GSL), General Service Small (Schedule GSS), and/or The General Service Time of Use (Schedule TGS) rate(s) depending upon UCI's mlmmum demand for electric servme Add~tmnally, the Industnal/Economm Development Rider rate (Schedule IDR) shall be effective and apphcable to UCI, as UCI shall receive electric servme hereunder, pursuant to rate Schedules GSL, GSS and/or TGS The rate schedules m effect for purposes ofth~s Agreement are those rate schedules in effect on October 1, 1997, and as smd rate schedules may be thereafter amended during the term of this Agreement B The terms of the rates provided for ~n Article III A above are expressly subject to any stranded cost recovery provision of the laws of the State of Texas, as they may now exist, or as amended or hereafter enacted in the future IV BILLING AND PAYMENT FOR ELECTRIC SERVICE A DENTON shall render to UCI monthly bills for the electric service provided pursuant to this Agreement Billing periods will be approximately thirty (30) days in length DENTON ~ntends to read UCI's meter on the last working day of each month, and intends to issue bdhng to UCI on the second working day of the month next following B The due date for the payment of each monthly bill issued by DENTON to UCI for electric service hereunder shall be fifteen (15) days after the issuance of each monthly bill C DENTON and UCI agree that DENTON's provision of electric service to UCI hereunder, is further subject to the provisions of Chapter 26 of the Code of Ordinances of the City of Denton, Texas, as amended In the event of any conflict between the provisions of th~s Agreement and the provisions of smd Chapter 26, the provisions of this Agreement shall govern V METERING A Service at UCI shall be metered at the 13,200 volt dehvery pmnt by means of meter(s) furnished and installed by DENTON DENTON shall have the right to locate, operate, and mmntaln a meter and meter disconnect switches at or near the point of delivery The meter readings shall be conclusive as to the quantity of power and energy taken by UCI, unless upon Electric Servme Agreement - Page 4 tests, as provided in Subparagraph B herelnbelow, the meter ts found to be outside the accuracy standards presently in force, as estabhshed by the American National Standards Institute B UCI may request and w~mess a test of a meter during DENTON's normal working hours at a t~me mutually convement to UCI and DENTON in order to check the accuracy of the meter The test shall generally be made at the meter at its ~nstalled location, but may be made at a meter test laboratory selected by DENTON UCI shall pay the cost of such test ~f the meter has been prevmusly tested at UCI's request within the previous twelve (12) month pertod, and the meter ~s found to be within the accuracy standards set forth in the preceding paragraph If, as a result ora meter test, the meter is found to be outside the accuracy standard set forth above, DENTON shall promptly render corrected bills accordingly VI CONTINUITY OF SERVICE/FORCE MAJEURE A DENTON shall use reasonable diligence to provide UCI constant and uninterrupted electric power under this Agreement However, DENTON shall not be liable for any damages, costs or losses, if electric power or service should fall or be interrupted, suspended, curtailed, become defective, or be reduced through an act of God, governmental authority, action of the elements, public enemy, accident, strikes, labor trouble, breakdown of equipment, by ERCOT transmission grtd problem, or any cause beyond the reasonable control of DENTON Following any such event, DENTON shall use ~ts best efforts to restore service to UCI as promptly as reasonably practicable, after cons~denng the public health and safety ~ssues affecting the C~tlzens of Denton In no event shall DENTON be hable to UCI for consequential damages B All maintenance, repmr or upgrades that will effect the electric service to the UCI facility shall be performed at a mutually agreed-upon time VII WARRANTIES ANY WARRANTIES CONTAINED IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE THE ELECTRIC SERVICE PROVIDED UNDER THIS AGREEMENT IS BEING SOLD "AS IS" UCI AGREES THAT DENTON SHALL NOT BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, OR CONSEQUENTIAL DAMAGES, OR FOR THE LOSS OF PROFIT OR REVENUE ARISING FROM THE PROVISIONS OF ELECTRIC SERVICE UNDER THIS AGREEMENT, EVEN IF DENTON HAS BEEN ADVISED OF SUCH POSSIBILITY Electric Serwce Agreement - Page 5 VIII DEFAULT BY UCI A It shall be an act of default for UCI to fail to pay any monthly bill issued by DENTON to UCI for electric service provided to UCI hereunder within thirty (30) days after its issuance by DENTON B It shall be an act of default of UCI, should UCI fall to materially comply with any other provision of this Agreement respecting non-monetary defaults, as set forth in this paragraph In the event of a clmmed default, DENTON shall issue a written notice of default to UCI specifically describing the alleged default and stating the action which DENTON is requesting of UCI to wholly cure such default If said act or omission complained of by DENTON is not wholly cured within thirty (30) days after issuance of the written notice of default, then UCI shall be deemed to be m default of this Agreement Furthermore, any termination of this Agreement arising under the provisions of Article I D herelnabove, shall not be considered as an act of default by UCI C Any default conumtted by UCI m the performance and completion of this Electric Service Agreement shall also constitute a default by UCI of the Tax Abatement Agreement executed by UCI and DENTON on thts date D DENTON shall have the rtght to specifically enforce this Agreement in the event of default by UCI, to the extent permitted by law IX DEFAULT BY CITY A It shall be an act of default of DENTON, if DENTON fails to materially comply with any provtslon of this Agreement and fails to cure or remedy said alleged default as set forth in this paragraph UCI shall issue a written notice of default to DENTON specifically describing the alleged default and stating the action which UCI is requesttng of DENTON to wholly cure such default If said act or omission complmned of by UCI is not wholly cured within thirty (30) days after the issuance of the written notice of default, then DENTON shall be deemed to be in default of this Agreement Furthermore, in the event that DENTON should sell or otherwise dispose of its entire electric system during the term of this Agreement, that shall not constitute an act of default of this Agreement B UCI shall have the right to specifically enforce this Agreement in the event of default by DENTON, to the extent permitted by law X TERMINATION In the event that a party hereto has defaulted in the performance of this Agreement as provided for ~n Articles VIII or IX herelnabove, the non-defaulting party shall have the option of Electric Service Agreement - Page 6 terminating th~s Agreement once it has provided defaulting party with a further written notice of its intention to terminate this Agreement, ~f the default(s) in question have not been cured within thirty (30) days from the date that such further written notice is issued by the non-defaulting party XI MEDIATION AND ALTERNATE DISPUTE RESOLUTION The parties agree that if a dispute arises under this Agreement, that they will, in good faith, attempt to resolve the same tn a reasonable, expedlem manner The parties may agree to settle any d~spute under this Agreement by submitting said dispute to mediation No mediation arising out of, or relating to, this Agreement lnvolwng one party's disagreement, may include the other party to the disagreement without the other party's approval In the event that the parties agree that mediation is appropriate, they each agree to expedite the mediation process, and further agree to be each responsible for one-half of all mediation fees and expenses incurred XII NOTICES Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (1) dehvered in person to the address set forth below, (2) deposited in an officml depository under the regular care and custody of the United States Postal Serwce located within the confines of the United States of America, and sent by Certified Mml, Return Receipt Requested, and addressed to such party at the address hereinafter specified, or (3) delivered to such party by courier-receipted delivery Either party may designate another address, w~thm the confines of the United States of America, for notice, but until such time as written notice of such change is actually received by the other party, the last address of such party designated for notice, shall remain such party's address for notice United Copper Industries, Inc City of Denton, Texas J Dean Brown, General Manager Attn City Manager PO Box2617 215 E McKlnney 1110 Executive Drive, State 500 Denton, Texas 76201 Coppell, Texas 75019 XIII ASSIGNABILITY Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party, which consem shall not be unreasonably withheld PROVIDED HOWEVER, the parties agree that in the event UCI sells or otherwise disposes of all or a part of its Plant Facllmes, that this Agreement shall be assignable to UCI's transferee, conditioned upon UCI not being ~n default in the performance of this Agreement, at the time of Electric Service Agreement - Page 7 transfer, and upon the transferee expressly assuming this Agreement and all obhgatlons owing to DENTON under this Agreement, in writing XIV ENTIRE CONTRACT/MODIFICATION The parties understand and agree that this Agreement contains the entire Agreement between the parties and supersedes any and all prior agreements, arrangements, or understandings between the parties relating to the subject matter of this Agreement No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist This Agreement is subject to modfficat~on, waiver, addition, or deletion, only by means of a written document duly executed by both part,es hereto XV RELATIONSHIP OF THE PARTIES Nothing contained in this Agreement shall be deemed or construed by the parties hereto, or by any third party, to create the relationship pnnctpal and agent, or of partnership, or of joint venture, or of any association whatsoever between the parties, it being expressly understood and agreed that no prowslon contained in th~s Agreement, nor any act or acts of the parties, constitute a relationship, other than the relationship of ~ndependent part,es contracting with each other solely for the purpose of effectmg the provisions of this Agreement XVI SEVERABILITY If any term or provision ofth~s Agreement ~s held to be ~llegal, invalid, or unenforceable, the legality, vahd~ty, or enforceability of the remalmng terms or provisions of this Agreement shall not be affected thereby, and in lieu of such illegal, invalid, or unenforceable term or provision, there shall be added automatically to this Agreement, a legal, vahd, or enforceable term or provision, as similar as possible to the term or provision declared illegal, invalid, or unenforceable XVII GOVERNING LAW/VENUE The parties expressly agree that this Agreement is governed by, and will be construed and enforced in accordance with laws of the State of Texas The provisions and obligations of this Agreement are performable in Denton County, Texas Venue of any suit or cause of action arising under this Agreement shall lie exclusively ~n Denton County, Texas XVIII BINDING EFFECT Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns Electric Service Agreement - Page 8 XIX PARAGRAPH HEADINGS The paragraph headangs contmned in this Agreement are for convemence only and shall no way enlarge or hmat the scope or meaning of the various and several paragraphs hereof XX CONSTRUCTION Both partaes have partacipated in the negotaat~on and preparataon of thas Agreement, and thas Agreement shall not be construed either more or less strongly agmnst or for eather party XXI GENDER Wathan flus Agreement, words of any gender shall be held and construed to anclude any other gender, and words m the singular number shall be held and construed to include the plural, unless the context ntherwase reqmres XXII COUNTERPARTS This Agreement as executed m two ldentacal counterparts, each of whach shall be deemed an onglnal for all purposes IN WITNESS WHEREOF, the part~es hereto have caused this Agreement to be executed by and thr~ug_h t?elr re~spectave governing bodies and duly aulhonzed officers, o0 thas the /'~'" day of~~, 1998, to be effective as of ,~~ /~ ' 1998 CITY OF DENTON, TEXAS A Mumc~pal CorporaUon JACK ~ MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY Electric Service Agreement - Page 9 APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY UNITED COPPER INDUSTRIES, INC A Texas Corporation ATTEST \\CH-LG~0L"~HA~DkDE~[GL\~ur Doc~mcnts\Contracts\98\Umted Copp Elecmc Service Agreement - Page 10 CERTIFIC, ATE OF CITY SECRETARY THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the undersigned City Secretary of the Cl~y of Denton, Texas, (the "C~ty") DO HEREBY CERTIFY that according to the records of the C~ty of which I am custodmn, that the attached is a II'Be and accurate copy of a tax abatement agreement between the City of Donton and Umted Copper Industries, Inc as approved by the City of Denton C~ty Council on September 14, 1998 TO CERTIFY WHICH, w~tness my official s~gnature and the seal of smd C~ty, flus the 16th day of December, 1998 cify CITY OF DENTON, TEXAS CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the tmders~gned C~ty Secretary of the C~ty of Denton, Texas, (the "C~ty") DO HEREBY CERTIFY that aceonhng to the records of the C~ty of which I am custodian, that the attached is a true and accurate copy of a tax abatement agreement between the C~ty of Denton and Umted Copper Industries, lnc as approved by the City of Denton C~ty Council on September 14, 1998 TO CERTIFY WHICH, wlmess my official s~gnature and the seal of smd Cl~y, ttus the 16th day of December, 1998 cil', CI'I~ OF DENTON, TEXAS 1 21 6 O1120 STATE OF TEXAS § TAX ABATEMENT AGREEMENT BETWEEN COUNTY OF DENTON § THE CITY OF DENTON AND UNITED CITY OF DENTON § COPPER INDUSTRIES, INC This Tax Abatement Agreement (the "Agreement") is entered ~nto by and between the C~ty of Denton, Texas (the "C~ty"), duly acting herein by and through ~ts Mayor, and United Copper Industries, Inc, a Texas corporation (the "Owner"), a privately held corporation duly authorized and m good standing to do business m the State of Texas, duly acting hemm by and through ~t$ authorized officers WHEREAS, the C,ty has adopted a resolutmn stating that ~t elects to be ehg~ble to par- tmlpate m tax abatement and has adopted gmdelmes and criteria govermng tax abatement agree- ments known as the Denton Tax Abatement Policy, and WHEREAS, on the 27m day of January, 1998, the C~ty Council of Denton, Texas (the "City Council") adopted the Denton Tax Abatement Pohcy (the "Pohcy"), whmh m attached hereto and incorporated herein as Exhibit "A" and made a part of this Agreement for all pur- poses, and WHEREAS, the Policy constitutes appropriate "guldehnes and criteria" governing tax abatement agreements to be entered into by the City as contemplated by Section 312 002 of the Texas Tax Code, as amended (the "Code"), and WHEREAS, on the 3rd day of February, 1998, the C~ty Council passed Ordinance No 98- 016 (the "Ordinance") establishing Remvestment Zone No I, ~ty of Denton, Texas, as a eom- mercmlhndustnal remvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chapter 312, Subchapter B of the Code (the "Act"), and WHEREAS, Owner owns or leases certmn real property, more partmularly described in Exhibit "B" attached hereto and ~ncorporated herein by reference and made a part of this Agree- ment for all purposes (the "Premises") located entirely w~th~n the Zone, and WHEREAS, on the 12th day of December, 1997, Owner submitted an apphcat~on for tax abatement w~th various attachments to the C~ty concerning the contemplated use of the Premises (the "Application for Tax Abatement"), attached hereto and incorporated herein as Exinint "C" and made a part of tins Agreement for all purposes, and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in tins Agreement, and the other terms hereof are consistent w~th encouraging development of smd Zone m accor- dance with the purposes for ~ts creation and are in compliance w~th the Pohcy and the Ordinance and similar gmdelmes and criteria adopted by the C~ty and all applicable law, and WHEREAS, the City Council finds that the terms of this Agreement, and the Premises and Contemplated Improvements, meet the applicable guldehnes and criteria heretofore adopted by the City Council, which are set forth ~n the Pohcy, and WHEREAS, written not,ce that the City intends to enter into this Agreement, along with a copy of tins Agreement, has been furnished by the City, ~n the manner and by the t~me pre- scribed by the Code, to the pres~rhng officers of the governing bodies of each of the taxing units ~n which the Premises is located, NOW, THEREFORE, the City and Owner for and in consideration of the premises and the promises contmned herein do hereby contract, covenant, and agree as follows I CONDITIONS OF ABATEMENT A A condition of the Abatement (defined below) is that, by January 31, 1999 (sub- ject to force majeure delays not to exceed 180 days), a capital investment that establishes an ad- ditional assessed property value of real property improvements, equipment, and other tangible and personal property in excess of the assessed property value for the Premises on January 1, Page 2 1 246 01122 1998 (value) of at least $35,000,000, by January 31, 2000 a capital investment of at least $37,000,000, and by January 31, 2001 a capital investment of at least $40,400,000 be made w~th respect to construction and equipping of a bmldlng or buildings and other improvements to be constructed on the Premmes which are described in the Application for Tax Abatement Owner agrees to bmld a bmld~ng or braidings of approximately 373,000 square feet within the area de- scribed in Exlublt "B", substantially in accordance w~th Exhibit "D" as described ~n Section II(F) hereof, at value of new real property improvements, eqmpment, and other tangible personal property of at least $35,000,000 with respect to construction and eqmpplng of the building or bmldlngs or other improvements to be constructed on the Prermses on or before January 1, 1999 (the "Contemplated Improvements") For the purposes of the immediately precedang sentence, capital investment w~th respect to construction and eqmppmg the Contemplated Improvements shall ~nclude (1) costs related to the development and ~mprovement of the real estate, ~ncludmg, w~thout hmltatlon, construction costs and design and englneenng costs, (2) tangible personal property located on or at the Contemplated Improvements by Owner, excluding inventory and supplies The kind and location of the Contemplated Improvements is more particularly de- scribed in the Apphcatlon for Tax Abatement For the purposes of this paragraph, the term "force majeure" shall mean any c~rcttmstance or any condition beyond the control of Owner, as set forth in Section XXII "Force Majeure" which makes ~t ~mpossible to meet the above- mentioned thresholds Provided, however, should Owner fml to make a capital investment ~n the Contemplated Improvements that establishes a value of at least $35,000,000 on or before January 31, 2001 in accordance w~th the City's Tax Abatement Pohcy, the number of years of tax abate- ment will be reduced to coincide w~th the maximum years of abatement per the amount of the value established by the Policy For example, ~f the total value established by the capital invest- ment in the Contemplated Improvements is $34,000,000, the number of years of tax abatement Page 3 q 4o 01123 shall be reduced fi.om slx years to five years, ~n addition to the proportional reduction in abate- ment reqmred under Sections I(C) and (F) hereof B A condition of the abatement is that the Contemplated Improvements be con- strutted and the Premises be used substantially In accordance wah the description of the project set forth in the AppheaUon for Tax Abatement C A condition of the abatement is that, in connection with the operation of the Con- templated Improvements, Owner shall employ a minimum of 250 full-time jobs and net a total annual payroll of $8,500,000 with an average of $34,000 per job over each of the slx years of abatement following the beglnmng date defined ~n paragraph III(E) If force majeure conditions make it impossible for any condmon m Section I to be met, Owner may elect to explmn the rea- sons why such conthtaon was not met and shall propose a recommended course of action with respect to such condition If the City Council finds that the failure to meet such condition was justffied, the City Council may modify the reqmrements of th~s paragraph If the total employ- ment of the project is not 250 jobs and the annual payroll does not meet the threshold of $8,500,000 or the Owner does not achieve an assessed value of $35,000,000 for the Contem- plated Improvements by January 31, 1999, the tax abatement will be reduced by the percentage relative to the actual value of the Contemplated Improvements and the agreement value of the Contemplated Improvements, the actual number of full-Ume jobs, the agreed number of full-t~me jobs, the actual payroll, and the agreed payroll, m accordance with the formula set forth m para- graph I(F) For the purposes of mal~ng the calculatmn of full-Ume jobs, those employees who begin their employment with Owner after October 1, 1995 shall be ~ncluded, to allow Owner to count employees who will be moved to the Contemplated Improvements m Denton from loca- tions outside the City of Denton, and whose jobs are moved to the Contemplated Improvements w~thln the area described m Exhibit "B" within the Zone Page 4 6 Ill D Owner covenants that as of January 1, 1998, there were no braidings, structures, equipment, personal property, or other ~mprovements (defined below) on the Prermses A con- d~t~on of tlus abatement is that throughout the Term of the Abatement, the Contemplated Im- provements shall be operated and mmntmned for the purposes set forth here~n so that the uses of the Premises shall be consistent w~th the general purpose of encouraging development or rede- velopment of the Zone, except as otherwse authorized or modffied by th~s Agreement E The City shall have the right to terminate the abatement ffthe Owner does not oc- cupy or lease the Contemplated Improvements In the event of such termlnat~on whmh results ~n the Owner falhng below one or more of the m~mmum threshold levels set forth ~n Section V(B) hereof, the Owner shall refund to the City all pmwous tax abatements and all tax abatements for future years shall be termmated F If the total Contemplated Improvements constructed on the project do not meet the threshold value of $35,000,000, or 250 full-time jobs are not employed, or the payroll does not reach $8,500,000 or any other threshold ~n Section I(C), the tax abatement will be reduced by the percentage relative to the actual value and the agreement value In the event that the Owner falls to meet two or more cnterm or thresholds, the tax abatement will be reduced by the largest percentage of non-comphance For example, ff the total value of structures and improvements to the real estate and the personal property ~nstalled and eqmpped w~th~n the structures ~s $31,500,000 or 10% less and there are only 250 full-time jobs or 8% less, then the tax abatement shall be reduced by 10% or 2 5%, reducing the tax abatement from 25% to 22 5% for each year the Owner does not meet these thresholds If the abatement has already been granted, then Owner shall immediately, upon receiving notice from the C~ty, remit the amount by which the tax abatement should be reduced w~th interest at SlX percent (6%) per annum from the time the Owner was not m comphance For example, in the example above, Owner would remit 2 5% of Page 5 0 I the total abatement from the date the abatement was received and anterest on the pnnc~pal amount from the date the Owner was not ~n compliance G S~multaneously w~th the execution of this Agreement, the Owner shall enter anto a long-term agreement with the Caty of Denton Munmapal Utdatms for the prowslon of electric service for a term of not less than five years, and shall mmntmn performance of its contractual obhgataons for the full period of the contract Pmvaded, however, the sale of the City's entire electrical system, whmh by the terms of the agreement between Owner and Caty for electrical servme causes a termination of the electrical services agreement, shall not constitute a default ~n performance of thru Agreement which will result an a recapture of all or a part of the tax abate- ment H In conmderatlon of the abatement granted here~n Owner agrees to comply with all the terms and condatlons set forth an thru Agreement II GENERAL PROVISIONS A The Caty has concluded that it has adopted guldehnes and criteria governmg tax abatement agreements for the Caty to allow it to enter ~nto this Agreement contmnmg the terms set forth herein B The C~ty has concluded that procedures followed by the C~ty conform to the re- qulrements of the Code and the Ordinance, and have been and wall be undertaken in coordanatlon wath Owner's corporate, pubhc employee, and bumness relations reqmrements C The Premises are not m an improvement project financed by tax increment bonds D Neither the Premmes nor any of the Improvements covered by thas Agreement are owned or leased by any member of the City Council, any member of the City Planning and Page 6 Zomng Commasslon of the City, or any member of the governing body of any taxing units join- lng in or adopting this Agreement E In the event of any conflict between the Cay zomng ordinances, or other Cay or- dinances or regulations, and th~s Agreement, such ordinances or regulations shall control F The building for Owner shall be constructed substantially as shown on the at- tached drawing submitted by Trammell Crow, which ~s attached hereto and ~ncorporated as Ex- hibit "D" and made a part of thru Agreement for all purposes Prowded, however, nothing here~n shall prevent Owner fi.om making changes to the bmldlng as shown xn Exhibit "D" as may be necessary to meet state and federal environmental laws and regulations III ABATEMENT TERMS AND CONDITIONS A In conslderat~on of the Owner meeting all the terms and conditions of abatement set forth herein, the City hereby grants a tax abatement ("Abatement") (1) to Owner relative to the Premises and all improvements to the Premises (the "Improvements"), and (2) to Owner for the tangible personal property on the Premises excluding mventory and supphes, such Abate- ment to be subject to the following terms and conditions B The value of the Abatement on the Premises and the Improvements shall be the following port,on of the ~ncrease m value of the Improvements on the premises over their value on January 1, 1998, the year ~n which this Agreement ~s executed ~n accordance w~th Section 312 204 of the Code Twenty-five percent (25%) of the increase ~n value fi.om construction of any Improve- ments C The value of the Abatement on the tangible personal property on the Premises, excluding inventory and supphes, shall be the following portion of the Increase ~n value of such Page 7 tangible personal property on the Premises over the value on January 1, 1998 m accordance with Section 312 204 of the Code Twenty-five percent (25%) of the increase m value of the tangible personal property on the Premises whach is used by Owner in the operation of the Contemplated Improve- ments D Owner shall have the nght to protest and contest any or all appraisals or assess- ments of the Premises and/or Improvements or any tangible personal property owned by Owner If Owner is successful in obtaining a reduction m taxes based upon such protest or contest afier a tax abatement for that year has been granted, it shall immediately notify the City, through its City Manager E The term of the Abatement (the '~rerm") shall beg~n on January 1 of the year fol- lowing the calendar year in which a certificate of occupancy ~s ~ssued by the C~ty for the Im- provements (the "Beg~nmng Date") and, unless sooner terminated as here~n prowdcd, shall end on the December 31st immediately preceding the 6th anniversary of the Beglnmng Date F If the value of the Improvements, the number of employees, or payroll reqmre- ments are not met, the tax abatement will be reduced by a percentage relative to proposed and actual numbers as set forth in paragraph I(F) IV RECORDS AND EVALUATION OF PROJECT A, The Owner shall provide access and authonze ~nspectlon of the proper~y by C~ty employees and allow sufficient ~nspectlon of financial ~nformat~on to ~nsure that the improve- ments are made and the thresholds are met according to the specifications and conditions of this Agreement Such inspections shall be done in a way that will not interfere with Owner's busi- ness operations C~ty shall annually (or such other times deemed appropriate by the City) evalu- Page 8 k246 O I ate the ProJect to ensure comphance with this Agreement Owner shall provide information to the City on a form provided by the City for the evaluation The information shall include the following (l) the total number of employees who work on the premises, their total sala- ries, (n) an inventory listing the l~nd, number, and location of and the total value of all improvements to the property, including, without l~mltauon, the value of all structures and all tangible personal property installed or lo- cated in the Premises B The City Manager shall make a decision and rule on the eligibility of the ProJect for tax abatement based on the information furmshed each year by the Owner on or before August 1 of the taxable year and shall so notify Owner, the Joint Committee on Tax Abatement, and the C~ty Council For the first taxable year, the payroll threshold will be considered to be met if there are at least 250 full-time employees of the Owner by July 31, 1999 and the average wage ~s $34,000 per employee If the Owner ~s d~ssatlsfied with the City Manager's decision, ~t can appeal has dec~slon to the City Council The City Council's decision on the matter shall be binding, final, and not appealable, except for arbitrary and capricious acts and actions, gross negligence or willful misconduct, and any appeal shall be under the substantial evidence rule, provided, however, that notwithstanding the foregoing, under no circumstances shall the City Manager or the City Council be authorized to terminate, reduce, or recapture the Abatement un- less the conditions of the Abatement are not satisfied within the t~me frames specified herein C Dunng normal office hours throughout the Term of th~s Agreement, providing reasonable notice is given to Owner, the City shall have access to the Premises by City employ- ees for the purpose of inspecting the Premises and the Improvements to ensure that the Im- Page 9 2N6 01129 provements are being made in accordance with the speclfiCat~ons and conditaons of th~s Agree- ment and to verify that the condatlOnS of this Agreement are being comphed wath, provided that such anspeetaon shall not anterfere wath Owner's normal business operations D The Owner shall annually make a certaficat~on in writing to the C~ty Council, the Commissioners Court of Denton County, and the Board of Trustees of the Denton Independent School District, on or before June 1st of each year this Agreement IS m effect, except for the first year when Owner shall have until July 31, 1999 to make thas certaficat~on, that certifies that the Owner ~s in comphance with each applicable term of thas Agreement and any other tax abate- ment agreement at may have entered ~nto wath Denton County and the Denton Independent School District E That s~multaneously w~th the execution of thas Agreement, Owner ~s entenng ~nto samflar tax abatement agreements with Denton County and the Denton Independent School Dis- trict Nothing an thas Agreement shall preclude Denton County and the Denton Independent School District from entermg anto tax abatement agreements which contain different terms and conditions than th~s Agreement and different portaons of abatement than shown in paragraph III(B) and (C) of this Agreement, an accordance wath Section 312 206(c) of the Act, Chapter 312, Subchapter B, of the Act, and all other appheable laws V FAILURE TO MEET CONDITIONS A In the event that (1) the conchtlons m paragraphs I(A), (C), (F), and (G) are not met, or (n) Owner allows ats ad valorem real property taxes w~th respect to the Premises or Im- provements, or its ad valorem taxes with respect to any tangible personal property, ff any, owned by the Owner wlueh ~s located ~n the Improvements, owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad Page l0 valorem real property or tangible personal property taxes, or (in) any other conditions of the Abatement Agreement are not met, then a "Condition Failure" shall be deemed to have occurred (It being understood that a Condition Failure relatmg to any condition set forth in paragraphs I(A), (C), (F), and (G) shall not be deemed to occur merely because at a particular time it cannot be determined whether such condition will be met, but shall occur only if at a particular time it can be definitively determined that such condition will not be met) In the event that a Condition Failure occurs, the City shall give Owner written notice of such Condition Failure and if the Condition Failure has not been cured or satisfied within ninety (90) days of said written noUee, the Abatement shall be reduced in accordance with paragraph I(F), and Owner shall remit the amount of the Abatement by which it was reduced plus interest from the time the Owner re- ceived the Abatement for each year the Owner is out of compliance Provided, however, that if such Condition Fmlure is not reasonably susceptible of cure or satisfaction within such ninety (90) day period and Owner has commenced and is pursuing the cure or satisfaction of same, then after first advlsmg City Council of efforts to cure or saUsfy same, Owner may utilize an addi- tional mnety (90) days Time m addition to the foregoing 180 days may be authorized by the City Council, and such authorization shall not be unreasonably withheld If a Condition Failure IS not cured or satisfied after the expiration of the apphcable notice and cure or satisfaction pen- ods, the Abatement shall be terminated with respect to the year an which notice of the Condition Failure is given and all future years It being understood that the Abatement with respect to any year prior to the year in which notice of the Condition Failure is given shall not be forfeited or recaptured except as indicated under Section V(B) hereof Notwithstandmg any provision In this Agreement to the contrary, Owner shall refund to the City all tax abatements previously received with interest for the year an which the notice of Condition Failure IS given Page 11 246 1131 B If, however, the Owner fmls to construct any structures or other improvements, or falls to install any eqmpment or other tangible personal property within the Premises by January 31, 1999, If the value of all improvements falls below the current mlmmum $5,000,000 threshold or ~f the Owner fmls to employ at least 130 jobs by July 31, 1999, or if the total employment within the term of this Agreement falls below 130, or the Owner fails to reach at least a payroll of $4,420,000 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 fmls to mmntmn performance of its contractual obhgatlons for the full penod of the contract, then tlus 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 slx 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 C That in the event of a condition failure by Owner which is not cured or satisfied as set forth herein, in addition to a partial or total recapture of the tax abatement, the City may can- cel or modify this Agreement VI EFFECT OF SALE, ASSIGNMENT, OR LEASE OF PROPERTY A The Abatement with respect to the Project, including any tangible personal prop- erty located on the ProJect owned by Owner shall vest in Owner and shall be assignable, with City approval, which shall not be unreasonably withheld, to any individual, partnership, jmnt venture, corporation, trust or other entity 0rrespectlve of whether or not such assignee is related to or affiliated with Owner) whmh acquires title to the Project Any asmgnee of Owner or any Page 12 k2k5 01t3£ assignee of a d~rect or md~rect assignee of Owner shall be treated as "Owner" under th~s agree- ment No assignment shall reqmre the consent ofC~ty ~f, following such assignment, the Owner continues to occupy and operate the Contemplated Improvements for the full term of th~s Agreement Nor shall the consent of the C~ty be necessary ~fthe assignee agrees to fully comply w~th the terms and conditions of thru Agreement VII NOTICE All notices called for or reqmred by th~s Agreement shall be addressed to the following, or such other party or address as etther party designated ~n writing, by certffied mad postage pre- pare or by hand dehvery OWNER CITY Dean Brown, Vine President Ted Benav~des, C~ty Manager Umted Copper Industries, Inc C~ty of Denton P O Box 2617 215 East McK~nney Coppell, Texas 75019 Denton, Texas 76201 VIII CITY COUNCIL AUTHORIZATION Th~s Agreement was authorized by the Ctty Counml by passage of an enabhng ordinance at ~ts meeting on the 18th day of August, 1998, anthoriz~ng the Mayor to execute th~s Agreement on behalf of the C~ty, a copy of which ~s attached hereto and ~ncorporated here~n as Exhibit "E" as ffwntten word for word hereto IX BOARD OF DIRECTORS AUTHORIZATION Th~s Agreement was entered ~nto by Owner, pursuant to authority granted by the Board of D~rectors of Owner, as authorized by corporate resolution to execute th~s Agreement on behalf of Owner, a certfficate ewdencmg such resolution and consent ~s attached hereto and ~ncorpo- rated here~n as Exhibit "F" as ff written word for word here~n Page 13 01133 X SEVERABIILTY In the event any section, subsection, paragraph, sentence, phrase or work is held invalid, illegal or unconstitutional, the balance of thru Agreement shall stand, shall be enforceable and shall be read as if the part,es intended at all t~mes to delete said lnvahd section, subsection, para- graph, sentence, phrase, or word In the event that (1) the term of the Abatement with respect to any property ~s longer than allowed by law, or (n) the Abatement apphes to a broader classffica- tlon of property than ~s allowed by law, then the Abatement shall be vahd with respect to the classification of property abated hereunder, and the port~on of the term, that ~s allowed by law XI ESTOPPEL CERTIFICATE Any party hereto may request an estoppel certfficate from another party hereto so long as the certificate is requested m connection with a bona fide business purpose The certificate, wbach if requested will be addressed to the Owner, shall include, but not necessarily be hmlted to, statements that th~s Agreement ~s m full force and effect without default (or if default exists the nature of default and curative action, which should be undertaken to cure same), the remain- lng term of this Agreement, the levels and remalmng term of the Abatement ~n effect, and such other matters reasonably requested by the party(les) to receive the cemficates XII OWNER STANDING Owner, as a party to this Agreement, shall be deemed a proper and necessary party m any htlgatlon questioning or challenging the validity of this Agreement or any of the underlying or- dinances, resolutions, or C~ty Council actions anthonzmg same and Owner shall be entitled to intervene ~n said ht~gat~on Page 14 XIII APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas Venue for any actxon under thxs Agreement shall be the State's D~stnct Court of Denton County, Texas Thxs Agreement ~s performable ~n Denton County, Texas XIV RECORDATION OF AGREEMENT A certffied copy ofthxs Agreement ~n recordable form shall be recorded xn the Deed Rec- ords of Denton County, Texas XV MUTUAL ASSISTANCE Cxty and Owner agree to do all th~ngs necessary or appropriate to carry out the terms and prows~ons ofth~s Agreement and to md and assist each other ~n carryxng out such terms and pro- ws~ons Owner and C~ty agree at any t~me, and from t~me to t~me, to execute any and all docu- ments reasonably requested by the other party to carry out the intent of th~s Agreement XVI ENTIRE AGREEMENT Th~s instrument wxth the attached exhxb~ts and the agreement to be executed between the part~es for the prowsxon of electric serwce to Owner by the C~ty, contmns the entire agreement between the partxes wxth respect to the transaction contemplated ~n th~s Agreement XVII BINDING Thxs Agreement shall be bxndxng on the parkes and the respectxve successors, assigns, he,rs, and legal representatxves Page 15 XVIII COUNTERPARTS This Agreement may be executed ~n counterparts, each of which shall be deemed an onglnal, but all of which together shall constitute one and the same ~nstmment XIX SECTION AND OTHER HEADINGS Section or other headings contamed ~n this Agreement are for reference purposes only and shall not affect in any way the meamng or interpretation of this Agreement XX NO JOINT VENTURE Nothing contained in th~s Agreement is intended by the parties to create a partnership or joint venture between the parties, and any lmphcation to the contrary ~s hereby disavowed XXI AMENDMENT This Agreement may be modified by the parties hereto to ~nclude other prowsmns wluch could have onglnally been included m this Agreement or to delete provisions that were not originally necessary to this Agreement pursuant to the procedures set forth m Title 3, Chapter 312 of the Code XXII FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obh- gations under this Agreement, then the respective Party's obhgattons hereunder shall be sus- pended dunng such period but for no longer than such period of t~me when the party ~s unable to perform Page 16 l 2L, 6 O I i36 That tins Agreement was EXECUTED th~s /~/7~' day o~ 1998, by duly authorized officmls of the C~ty and by Umted Copper Industries, a Texas corporation, mmultane- ously w~th the execution of mmflar Tax Abatement Agreements between Umted Copper Indus- tries and the Denton Independent School Dmtnct and Denton County CITY OF DENTON, TEXAS ATTEST JENNIFER WALTERS, CITY SECRETARY ?/ APPI:~)VED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY UNITED COPPER INDUSTRIES, INC A TEXAS CORPORATION T~tle ATTEST Page 17 STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for smd State of Texas, on this day personally appeared Jack Miller, Mayor for the C~ty of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that thas in- strument was executed for the purposes and consideration there~n expressed G~ven under my hand and seal of office this the/~day o~, 1998 My Commission Expires/~~ STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authonty~, a Notary Pubhc in and for said State of Texas, on thxs day personally appeared ~r~ov.~_ ~ , on behalf of United Copper In- dustries, Inc, known to me to be th~ of Umted Copper Industrtes, Inc and to be the person who signed and executed the forego~n-g instrument, and acknowledged to me that flus instrument was executed for the purposes and cons~deratlon there~n expressed Given under my hand and seal of office th~s the/t~(~'day of~, 1998 My Commasslon Expires/.~J_/_~0~ ti' Page 18 DENTON POLICY FOR TAX ABATEMENT I GENERAL PURPOSE AND OBJECTIVES The City of Denton (City), the Denton Independent School District (DISD) and Denton County are committed to the promotion of high quality development in all parts of the c~ty and to an ongoing improvement m the quality of hfe for its cmzens Insofar as these objectives are generally served by the enhancement and expansion of the local economy, the City of Denton, DISD, and Denton County, will on a case-by-case basra, give consideration to providing tax abatement as a stimulation for economic development m Denton It is the pohcy of the C~ty and DISD that said conslderatlonwfll be prowded In accordance with the procedures and criteria outlined in flus document Nothing herein shall Imply or suggest that the City, DISD or Denton County are under any obhgatlon to provide tax abatement to any applicant All apphcants shall be considered on a case-by-case basis Tax inducements, as described m this pohcy, will be considered for new, expanding and modermzmg basle industries, corporate office headquarters and distribution centers II CRITERIA Any request for a tax abatement shall be reviewed by the Jmnt Commmee on Tax Abatement, sa~d Comnuttee being comprised of two elected officials from each of the taxing entrees revolved One addmonal staff person from each jurisdiction shall be appointed to serve as a nonvotl , eng~x officio member of the eommmee The Joint Comrmttee on Tax Abatement serves as a recommending body to the taxing entrees regarding whether economic development incentives should be offered in each individual case Their recommendation shall be based upon an evaluaUon of the following criteria which each appheant will be requested to address m narraUve format 1 History and Philosophy of the firm 25 6 Of a) Nature of products and geographic penetration b) F~nancial statements for past five years or hfe of firm whichever ~s shorter c) Chronology of plant opemngs, clomngs, & relocations over past 15 years d) Record of mergers and financml restmcmnng dunng last five years e) Record of employment and trmmng prowded for handmapped and chronically unemployed 2 ProJect Specfficattons a) Prowde plat of proJect including all roadways, land use and zomng wtttun 500 feet of site Legal description of s~te ts required b) Is the project a relocation or new facility to expand operations If relocation, g~ve current locauon c) Project investment m real and personal property at the above stte for each of the next ten years d) ProJect permanent employment for next ten years resulting from the new mvestment Indmate number of jobs that will be filled by people from outside the metroplex Include estimated average annual salary on new jobs e) What is the total current payroll and the projected payroll when project ts completed f) Describe employment trmmng mqmrements ~nclud~ng proms~ons for trmmng handicapped and chromcally unemployed tf applicable g) Project utility (gas, electricity, water, etc ) usage for each of next ten years h) Esumate the infrastructure (streets, sewer, water, etc ) reqmrements necessary to operate the new facility 0 Estimate the annual operating budget for next ten years Will the occupants of the project be owner or lessees9 If lessees, are occupancy comnutmcnts already emstmg9 k) CAve the name, address, and telephone number of contact person 26 3 The commumty ~mpact of the project a) Project the value of real and personal property that wdl be added to the tax rolls b) Ustng current rates estimate the additional taxes that will be d~rectly generated by the project wahout constdermg any proposed abatement for each of the affected taxing entrees for each of the next ten years c) For each taxtng entity tndtcate the mount of tax abatement requested for each of next ten years d) Estimate the mcrease m investment ~n other local businesses resulting from the project for the next ten years e) Esttmate the tncreased houstng needs ~n the area resulttng from the project for ten years f) Estimate the tncrease tn the tax rolls for each taxing entity for the next ten years g) Esttmate the tnfrastmcture construction that would be requxred because of the growth resulting indirectly from the project h) Prowde the specffic detail of any businesses/residents that w~ll be dxsplaced and asststance that wdl be avatlable from the requesttng enttty 1) Esttmate the ~ncrease in students by grade level resulung from the project including the multtpher effect (redirect gwwth) for the next ten years Show the tncrease for each impacted school d~stnct j) Prowde description of any lustoncally stgmficant area ~ncluded walun the project's area If any, g~ve detml of how the htstoncally s~gmficant area wtll be preserved k) Provtde reformation of any demmental effect on ex~stmg bustnesses, recreational areas, and res~denttal area 1) Provtde details of any benefit to an area of the commumty targeted for rewtahzatlon/redevelopment III VALUE OF INCENTIVES The criteria outlined tn Sectton II will be used by the Jomt Commtttee on Tax Abatement tn determtmng whether or not tt ts tn the best interests of the affected tatung enttt~es to recommend that tax abatement be offered to a particular facfitty Spe¢ffic cons~derat~onswdl tnclude the degree to wtuch the ~nd~wdual project furthers the goals and object~ves of the commumty, as well as the relative tmpact of the project New, expanding and modernizing bustnasses w~ll be ehg~ble for abatemem ~f the mm~mum 27 threshold, as described below, is met Once a determination has been made that a tax abatement should be offered, the value and term of the abatement will be determined by referencing the following table TABLE 1 Establishes maximum length of abatement according to assessed real property value of improvements and personal property MAXIMUM MAXIMUM VALUE OF STRUCTURE YEARS OF PERCENTAGE OF AND PERSONAL PROPERTY ABATEMENT ABATEMENT 100 10 25% 80 9 25% 65 8 25% 50 7 25% 35 6 25% 20 5 25% 15 4 25% 10 3 25% 5 2 25% If an cresting business is located wathln the boundaries of the participating jurisdictions and dectdes to expand or relocate wathm such boundaries, the actual value of the structure shall be multlphed by 125% prior to ut~hzmg Table 1 Ifthe expanding or relocating business is abandomng any property or improvements watlun the junsdlcttons, the value of tlus abandoned property shall be subtracted from the new value figure prior to mult~plymgthe value by 125% The tax abatement shall not apply to any portion of the land value of the project Apphcants agreeing to extend infrastructure improvements (streets and utalltles) to improve other industrial sites wluch can be marketed by the Chamber of Commerce Economm Development Director,may be ehg~ble for a greater tax benefit than those described above by ntihzmg tax increment financing procedures The offenng of such an inducement wall be evaluated on a case-by-case bas~s dependent upon the apphcant's ability to make avmlable ~mproved industrial sites Preliminary Aoohcatlon IV PROCEDURAL GUIDELINES Any person, orgamzatlon or corporation deslnng that the City or DISD consider prov~dlng tax abatement to encourage location or expansion of fac~ht~es within the limits of the .lunsdlctlons shall be reqmred to comply w~th the following procedural gutdehnes Nothing within these guidelines shall imply or suggest that either the C~ty, or DISD, is under any obligation to provide tax abatement to any applicant A Applicant shall complete the attached "Application for Tax Abatement" B Applicant shall address all cntea~a outlined in Section II above m narrative form C Applicant shall prepare a map showing the precise location of the property and all roadways w~thm 500 feet of the site D If the property is described by metes and bounds, a complete legal descnp~on shall be provided E Applicant shall complete all forms and information detailed in items A through D above and submit them to the City Manager, City of Denton, 215 E McKmney, Denton, TX 76201 Aonilcatlon Review Stem All mformaUon m the application package detailed above will be reviewed for completeness and accuracy Addlttonahnformatlon may be requested as needed The apphcaUon wall be distributed to the appropriate City and DISD departments for internal review and comments Addmonal information may be requested as needed Copies of the complete apphcatton package and staff comments will be provided to the Joint Committee on Tax Abatement 29 Consideration of the Apphcatlon I The Joint Committee on Tax Abatement will consider the apphcatlon at a regular or called meetmg(s) Add~ttonal reformation may be requested as needed J The recommendation of the Joint Committee on Tax Abatement will be forwarded, wtth all relevant materials, to the chtef administrative office of each taxtng entity K If the City Council of Denton dectdes to grant a tax abatement it shall consider a resolution ealhng a pubhc heanng to consider estabhshment of a tax relnvestment zone in accordance w~th SeeUon 312 201 of the Tax code and meeting one or more of the criteria of Section 312 202 of the Tax Code L The City Council of Denton shall hold the public heanng and detenmne whether the project is "feastble and practical and would be of benefit to the land to be included in the zone and mumclpahty tn accordance with Section 312 201" Special consideration shall be gtven to pohcles noted in the Denton Development Plan when designating a tax remvestment zone M The C~ty Council of Denton may consider adoptmn of an ordinance designating the area described in the legal descnpuon of the proposed project as a commercial/industrial tax abatement zone N The Ctty Council may consader adoption of an ordinance or resoluUon approvmg the terms and condmons of a contract between the City and the apphcant govermng the provtsion of the tax abatement and the commitments of the applicant including all the terms requtred by Section 312 205 of the Tax Code and such other terms and condmons as the City Counctl may require Should the commitments subsequently not be saUsfied, the tax abatement shall be null and void, and all abated taxes shall be pa~d immediately to the City of Denton and all other taxing junsdtctlons participating tn the tax abatement agreement Provisions to this effect shall be incorporated into the agreement O The governing bodies of the various taxing entities may consider ratification of and participation m the tax abatement agreement between the City of Denton and the applicant Any tax abatement agreement will address various issues, including, but not limited to, the following 1 General description of the project, 2 Amount of the tax abatement and pement of value to be abated each year, 3 Method of calculating the value of the abatement, 4 Dura~on of the abatement, including commencement date and termination date, 5 Legal description of the property, 6 Kind, number, location and timetable of planned Improvement~ 7 Specffic terms and cond~tlons to be met by apphcanl; 8 The proposed use of the facility and nature of construction, 9 Contractual obligations m the event of default, violation of terms or conditions, delinquent taxes, recapture, adm~mstration and asslgment Annual Evaluation Upon completion of construction, the Joint Committee on Tax Abatement shall annually evaluate each facthty receiving abatement to insure compliance wath the agreement and report possible violations of the agreement to the taxing entities Transfer or Assl;,nment A contract for tax abatement may be transferred or assigned by the original applicant to a new owner upon the approval o£ the various taxing jurisdictions after such a recommendation is made by the Joint Committee on Tax Abatement ALL that c, rtain lot, tract or parcel of laud lying and being situated in the City and County of Denton, State of Texas, being part oftbe M. Forrest Survey, Abstract Number 417 and being more particularly desenbed aa follows: BEGINNING at the southwest corner of 90 65~6 acre tract described as Tract III by Special Warranty deed conveyed to Albertson's Incorporated recorded m Volume 3205, Page 214 of the Real Property Records of Denton County, Texas, sand point also lying on the north line of U.S. Highway 380; THENCE South a distance of 63 feet to the centerhne of said U.S. Hnghway 380; THENCE Northeasterly along the eenterline of U.S. H~ghway 380 a distance of 4~303 feet to a point for corner; THENCE North passing at 6;3 feet the north right-of-way line of U $. Highway 380 and continuing along the east line of a 28 acre tract, conveyed to D.C. Bullard, et ux by deed recorded in Volume 432, Page 149 of the Deed Records of Denton County, Texas, continuing North and passing the northeast corner of said Bullaed tram and continuing North to a point in the eenterline of Fbhtrnp Road; THENCE Westorly and northwesterly along the eenterline courses of Fisbtrnp Road a distance of 3,210 feet to n point for corner, said point being the mtefleetion of the osnterline of Fishtrap Road and the rentor#ne of the Union Paeiflo Railroad; THENCE Southwesterly along the eeuterline of the Umon Pacific Railroad a distance of 1,710 feet to a point for corner; THENCE SOuth passing at 64 feet the most northerly northwest corner of said 90.6S66 aero Albertson's tract and continuing a total dbtanco of 240 feet to a point for corner, satd point being the northwest corner ora 1.457 acre SAVE & EXCEPT tract deeeHbed as Tract Il in said Albertson's deed recorded in Volume 320S, Page 214 R.P. ILD.C.T.; THENCE Southeasterly dong the northeast line of said 1.457 acre tract a dbtanco of 564 feet to a point for come, said point being the southeast corner of said 1.457 acre tract; THENCE South dong the west line ora 2.114 aero tract described as Tract I in said Albertson's deed recorded in Volume 3205, Page 214 ILP. ILD.C.T. a dutanco of 662 to the southwest corner of said 2.114 aero tract; THENCE West a diatanos of 69 fect to the most southerly northwest corner of said 90.6S66 acre Albertson's [net; THENCE South n distance of 18S feet to the POINT OF BEGINNING and containing i63 acres of land. United Copper Industries Application for Tax Abatement Prepared for Proposed Denton Stte D~¢ember 12, 1997 ~ Umted CoppiR InduStt~lls ~. - : TABLE OF CONTENTS Section I EXECUTWE SUMMARY Section Il APPLICATION FOR TAX ABATEMENT Section IT! NARRATIVE SECTION OF APPLICATION Sectton IV PROPOSED BUILDING LAYOUT Section V AERIAL OF SITE Sectton VI LEGAL DESCRIPTION OF SITE 3 6 Trammell Crow Dallas~Fort Worth ~ Unnedl Copper Industries December 12 1997 We are pleased to have the opportumty to subrmt this apphcation for tax abatements to your council Trammell Crow started worl~ng with United Copper dunng the third quarter of 1996 We successfully helped them secure a 110 000 square foot dlstnbutlon tacdlty tn Coppell Halt ot th~s tacdtty ~ currently being used by one of their sister compames, Cambridge-Lee lndusmes Cambridge-Lee Industries is a d~smbutor of copper tubing The balance of the warehouse ts used by Umted Copper tot dtsmbut~on purposes Along with a variety of other US businesses, Cambridge-Lee and Umted Copper are owned by IUSA or Umted Industries a privately held diversified Mexican conglomerate The long term plan ot United Industnes ts to develop a National Headquarters tn North Texas We have secured the 91 acre site as a possible location for them to k~ck-off their US developments The first phase ot th~s project will be to build the corporate headquarters tot United Copper Industries. their national dlsmbution center and the integrated copper wire and cable manufactunng facthty We feel that tins fa~.lhty will serve as a flagsinp on the east side of Denton for future developments The budding will be a showpiece which should act as a magnet for other developments tn the area In addmon, to the jobs created and the tax dollars generated, we feel this project wdl be wewed as a statement towards our wtlhngness to develop future business with Merd~,o We are very ex~lted about tins project The e~onormc m~.entlves offered will be a key part of the over-all evaluation ,of where to locate this operation We look forward to working w~th you Smcerely, Seth T Kelly ~/ Dave D Noble 37 Trammell Crow Dallav/Fort Worth APPLICATION FOR TAX ABATEMENT Property Owner: Albertson s Inc 250 ParkCenter Boulevard Boise Idaho 83726 Attn Mtke Baldner Phone # 208 393 669~ Under contract for sale to Tranunell Crow Company (Developer) 2200 Ross Avenue Suite 3700 Dallas. Texas 7~201 Attn Seth T Kelly Phone # 214 979 6144 2 Property Owner's Representative: (SEE ABOVE) 3 Property Address: 2727 Geeshng Road (Estimate of street address) Denton, Texas 76208 4 Located within: Ctty of Denton Denton County 5 Description of Project: Approximately 91 acres located at the northwest comer of 380 and Geeshng The budding will be apprortmately 420,000 square feet and shall face G-eeshng Road (See attached s~te plan) 6 Date projected for occupancy of project/initiation of operations: Janua~ 1999 3 8 Trammell Crow Dallas/Fort Worth ~ Un,ted Copptr I,dustllles SECTION OF APPLICATION NARRATIVE QUESTION/ANSWER H~story and Philosophy of the firm. a) Nature of products and geographic penetration The primary products to be manufactured at t~us fa~lhty wtll be TYPE THHN ~ondu~tor copper wire tot the commercial construction market and TYPE NM-B conductor copper wtre for the restdentzal ~onstru~.tlon market The fa~Ahty wdl have the ~apa~lty to produce 120,000,000 pounds ot each wtre type per year In addtt~on to the manutacmnng or these wtres the company will complement thetr tnventory w~th other related products that will be produced elsewhere The wdl dehver product to all 48 contiguous states Company b) Financml statements for the past five years or hfe of firm whichever is shorter Because the concern ts privately held and has no destre to have the financial statements to be of pubh~ re~.ord, we would hke to request a private meeting to revmw the financial condition of the entity Project Specifleataons: a) Prowde plat of project including all roadways, land use and zoning within 500 feet of the site. Legal description of the site is required. (SEE SECTIONS IV, V AND VI) b) Is the project a relocation or new facility to expand operations? If relocation, give current location. Th~s ts a proposed new faclltty Umted Copper currently has a $0,000 square foot d~stnbuuon fa¢lhty located at 1110 Exe~uttve Drtve, State 500, Coppell, Texas 75019 This facdlty was leased February I $ 1997 for a term of three years and slx months Umted Copper has a subtenant prepared to move into tls fa~hty when they move thetr d~stnbutton operatmns to D~nton Trammell Crow Dallas/Fort Worth 39 u ntd I c) Project Investment In real and personal property at the above site for years 1, 5, and 10 ~ Personal Property I Year I $10,000,000 $27,102,000 Eqmpment $37,500,000 Inventory Year 5 (Same as above + anflation) I Year 10 (Same as above + inflation) d) Project permanent employment for the next ten years resulting from the new investment I Include estimate average annual salary on new jobs. Emolovment Averaee Sal0ry I Year 1 260 $34,000 Year 2 325 $36,000 Year 3 390 $38,200 I Year 4 455 $40 000 Year 5 520 $42 900 Year 6 576 $45 500 Year 7 628 $48 200 Year 8 680 $51 100 I Year 9 732 $54 200 Year 10 800+ $57 450 I e) What Is the total current payroll and the projected payroll when the project is completed* Current payroll $3,100,000 at D~stnbution facility ~n Coppell I Payroll at completion $8,840,000 per year f) Describe employment training requirements if applicable. I The average worker will need to be highly trmned ~n order to operate the state of the an production eqmpment to be install an this fa¢lhty The company plans on working with I local educational ~nst~tut~ons to help supply them with this training ! I I I 4 0 Trammell Crow Dallas/Fort Worth ProJect utility {gas, electricity, water, etc ) usage for years 1, 5 and 10 Yc~ [ 204 ~lhon cu/fffye~ 14 4 ~lhon kw/~s We do not expe~t the utlhty consumption to ~ncrease until future producuon facxlmes ~e built on the ~tte There are no s~ctal water mqmrements Est~mte the ~rastructure (stree~ sewer, water, etc ) reqmremen~ necessary to operate the new facility. It will be necessay to bnng both water ~d sewer lines to the s~te Addition~ly, Geeshng Road wtl[ need to be widened and paved Will the occupan~ or the prolect be owner or lessees'~ If lessees, are occupancy co~tmen~ already existing? [t ~s undecided at th~s nme G~ve the na~, address, and telephone n~ber of the contact per~m ~ ~ Brown Umted Cop~r lndusmes 1110 ExecuUve Drive State S00 Cop~], Texa 75019 PH 972 393 6979 Mr Seth T Kelly (Project Coordinator) Tr~e~ Crow Comply 2200 Ross Avenue State Dally, Tex~ 75201 PH 214 979 61~ ~ Dave Noble (~velopment Coordinator) Trammell Crow Company 2200 Ross Avenue Sm~ 3700 D~, Tex~ 75201 PH 214 979 6~82 4 ~ Trammell Crow Dallas/Fort Worth I ~ U.,ted Copplr I.du.tr,es The conunumty ~mpact of the project: (SEE EXECUTIVE SUMMARY) Trammell Crow Dallas~Fort Worth $CHEDULE_.~ S CH~,BULE I to Contract of Sale T~ct I All that certain tract or parcel of land sttuated tn the MOREAU FORREST $LrRVLa'Y, ~STRACT NO 417, Denton County, Texas, being pan of a certain (called) 3 465 acm tract deeded by Margsam Investment Co, Inc to James C Payne on the 4th day of February, 1965 and recorded m Volume 522, Page 501, Deed Records, Denton County, Texas, and being more ful/y described as follows BEGINNING at the Northeast comer of smd 3 465 acre tract, TI-IENCE South 00 59 25 West, along and near a fence on the East boundary Line of deg mill sec smd 3 465 acre tract, a distance of 696 90 feet to an tron pm, THF. NCE South 85 deg 13 mm 12 sec West, along a fence a distance of 130 67 feet to a potnt, TI-t2ENCE North 00 deg 59 mm 25 sec ~t, a distance of 661 89 feet to a point m the Southwest right-of-way of an easement to Texas Mumc~pal Power Agency recorded m Volume 1167, Page 260, Deed Records of Denton County, Texas, TI-II~NCE North 38 deg 18 nun 38 sec West, along smd easemem nght-of-way a ~lstance of 57 46 feet to a point m the North boundary hne of smd 3 465 acre tract, TttENCE North 89 deg 43 mm 16 sec Fast, along a fence a d~stance of 166 44 feet to the POI2qT OF BEGINNING, and containing 2 114. acres of land, more or less Tract II LOT lB of the MA. RG-$AM SUBDMSION, an Addmon to the C~ty of Denton, Texas, the thereof recorded m Cabinet H, Page 237, Plat Records, Denton County, accordtng to Replat Texas Tract m' All that certain tract or parcel of land situated tn the M FORRF_.ST SURVEY, AI~TRACT NO 417 and the T H LIVING SURVEY, ABSTRACT NO 729, Denton County, Texas, ~mg all of TRACT 2 of the MARG*SAM SUBDIVISION, an Addition to the C~ty of Denton, Texas, according to the plat thereof recorded tn Volume 11, Page 25, Plat Records, Denton County, Texas, and being more fully described as follows 47 BEGL%~'L-NG at a found ~ron pm on the south mght-of-way of the Texas and Pacific Ru,lroad at ~ts mter~ecnon w~th the middle of .Mango Road, sa~d comer being the North Northeast comer of smd Tract 2 m the T H L~vmg Survey, TH~'~CE South 27 dog 35 mm 18 sec East m Mmgo Road past the South boundary hue of the T H L~vmg Survey, wi'ach ~s the North boundax~, hue of the 5,I Forrest Survey and continuing a d~stance ot 3 l0 97 feet to an tron pm at a mm m M. mgo Road, South $3 dog 15 mm 31 sec East m Mmgo Road d~stance of 776 97 feet TH~ CE a to a railroad sptke m the rmddle of Geeshug Road and the East Northeast corner of Tract 2, TI-~',rCE South 02 dog mm sec West m Geeshug Road a cLtsmnce of 1456 80 feet to aa u'on 19 32 pm at the beginning of a fla.~ of U S Highway 380, THENCE South 41 dog 54 mm 15 sec West a d~stance of 156 52 feet to a right-of-way monument at the end of smd flare, THENCE South 80 dog 37 mm 58 sec West w~th the North right-of-way of U S I-Iaghway 380 dong and near a fence a d~stance of 847 97 feet to a right-of-way monument, TH-ENCE South 74 dog 47 mm 24 sec West with the North boundary hue of saxd I'-Iaghway a d~stance of 101 06 feet to a right-of-way monument, THENCE South 80 dog 38 mm 00 sec West w~th the North boundary hue of s~ud H~ghway a d~stance of 1140 23 feet to a fence comer at the South Southwest comer of Tract 2 and the Southeast comer of tract described m a Deed from James C Payne, Sr, et al to Paul L Lubbers, et ux, and recorded tn Volume 604, Page 351, Deed Records of Denton County, T'dENCE North 00 dog 49 mtn 39 sec East w~th smd fence a d~stance of 259 11 feet to a fence comer at the Southwest comer of a 3 465 acre tract described m a Deed from Margsam Investment Company, Inc to James C Payne, and recorded m Volume 522, Page 501, Deed Records of Denton County, THENCE North 85 dog 13 mm 12 sec East w~th a fence a dlsUrtnce of 199 71 feet to a fence comer at the Southeast comer of sa~d 3 465 acre tract, THENCE North 00 dog 59 mm 25 sec East with a fence a dtstaace of 696 91 feet to a fence comer at the Northeast comer of sa~d 3 465 acre tract, THENCE South 89 dog 43 mm 16 sec West along and near a fence a d~stance of 779 34 feet to an tron pm at the Southeast comer of dedtcated Mary Lee Road, TI-I~NCE North 00 dog 45 mm 17 sec Fast a d~suance of 70 0 feet to aa tron pm at the Northeast comer of Mary Lee Road on the South boundary hne of Tract I of Marg-Sam Subd~vmon as shown on the plat recorded ra Volume I 1, Page 25, Plat Records, Denton County, 48 T?~NC~, Nor~l ~9 dcg 4,0 at the Southeitt comlr o~ Tmet 1, ~CE ~o~h 00 deg 37 mm 05 s~c ~u~t ~ong ~d ne~ a f~nc~ a d~s~c~ of 504 31 feet to ~ ~on pm on th~ South right-of-way ~C~ No~riy w~ ~ Sou~ right-of-way of th~ T & P ~n,lro~ ~ound a cu~ to th~ lea ~vmg a cen~ ~gle of I0 deg 09 mm 33 sec, a chord of No~ 65 deg 37 ~ 3~ sec ~st ~1 58 f~t, a m~us of 2493 69 f~t, ~d ~ ~c &s~ce of ~2 16 feet to the ~nd of smd cu~e, ~CE No~ 63 ~g 32 ~ 48 ~ ~t w~ ~e Sou~ boun~ ~e of smd ~oad 1294 50 feet to the PO~ OF BEG~G, con~g 90 6566 acres of l~d, more or less SAVE AND EXCEPT TH~ FOLLOWING THREE PARCELS OF ~ SA~ ~ EX~E~ ~T I ~ ~at ce~ ~ct or p~l of ~d s~t~ m ~e MO~U FO~T S~Y, ~S~CT NO 417, ~nton Count, Te~, being a p~ of a ce~ (c~ed) 90 4 acm Tract E of ~G- S~ S~D~SION m the Mo~au Foist Su~ey, recorded m Volume 11, Page 25, Plat Records of smd Count, ~d being mo~ ~y described as fo~ows BEG~G at the Southe~t corner of T~ct I of smd M~g-S~ Subd~ws~on, ~so ~mg ~e Southeast comer of a c~d 5 0 ac~ tract d~eded by I R Nebl~, ~t ux, to S~ety-~n Co~omflon on th~ 27th ~y of S~tember, 1974 ~d ~corded m Volume 724, ~ge 190, D~ Records of D~ntou Count, T~xas, ~ENCE South 00 d~g 37 m~n 05 s~c West a d~s~ce of 70 25 feet to a point m th~ North ~un~ ~ of a c~ 4 0 ~ ~t ~ by J C Payne, et ux, to S~e~-~o~n Co~o~uon on the 24th ~y of J~u~, 1979 ~d ~orded m Volum~ 934, Pag~ 798, D~ Records of Denton ~ounty, Texas, ~C~ Sou~ 89 ~g 43 ~ ~ ~ We~, ~ong the Nonh boun~ ~e of smd 4 0 ac~ t~ct a dtst~ce of 294 60 feet to the South~at corner of M~ ~e Road (dedicated pomon), ~ENCE No~h ~ deg ~5 mtn 17 s~ ~st, a d~s~ce of 70 01 f~t to the Northeast corner of M~ ~ Road (dedtcated pomon), ~ENCE North 89 deg 40 mm 34 sec ~st, a d~st~ce of 294 ~ feet to the PO~ OF BEGt~G ~d contmnmg 0 474 acres of l~d, more or less 49 4:)46 Iii 163 SAVE & EXCEF1~ TRACT II All :bat cern. am tract or p~c:l of I~d s~ted m the MO~U FO~T S~, ~S~CT NO 417, Denton Count, Texas, being a p~ of a ce~ (c~) 90 4 ac~ Tract ~ of ~G~S~ S~D~SION m the Mo~au Forest Su~ey, ~o~ed m Volume [ 1, Page 25, Plat ~cords of s~d County, ~d being mo~ ~Hy described as EHows CO~C~G at the Northeast comer of Tract I of s~d M~g-S~ Subd~ws~on, ~CE Sou~ ~ deg 37 mm 05 s~ West aong the ~st boun~ ~e of s~d Tract I ~d the No.em West ~un~ ~e of ~ T~t ~ a ~s~ce of 175 59 feet to a point m the Sou~west right.f-way of ~ easement to ~A, ~corded m Volume 1181, Page 955, De~ Records ~d at the PO~ OF BEG~G, ~CE Sou~ 38 ~g 18 ~ 38 ~ ~a~, aong ~d ~ment right.f-way a d~s~c~ of 506 ~ feet to a point m the No~ boun~ ~e of a c~ed 3 465 ac~ ~ct d~ed by M~gs~ Investment Co, ~c, to I C Payne on the 4th ~y of Febm~, 1965 ~d ~orded m Volume 522, Page 501, Deed Records, Denton Count, Texas, ~CE Sou~ 89 ~g ~3 ~ 25 ~ W~, p~smg a 43 80 f~t ~e Nonhe~t comer of a c~ 4 0 acre tract to S~e~-~een Coloron, ~corded m Volume 934, Page 798, De~ Records Denton Count, Text, a to~ d~s~ce of 318 26 feet to a ~mt, ~CE No~ 00 deg 37 ~ 05 ~c ~t, p~smg at 70 25 feet ~e Son.east comer of smd T~t I, a to~ ~ce of 398 9~ f~t to ~e ~ OF BEG~G ~d coring 1 457 ac~s l~d, mo~ or Of less SAVE AND ~EXCEPT Legal Land D~scription for Parcel 17 BEING 3,382 square feet or 0 0776 acres of land, mom or less, situated m the Moreau Forrest Survey, Abstract Number 417, the City of Denton, Denton County, Texas, and being a pan of Tract 2 of th~ Marg-Sarn Subdlv~sion, an addition to the C~ty of Denton, Texas, as recorded m Volume II, Page 25, Plat Records of Denton County, Texas, and being a pan of the land conveyed to Alpha Bela Company, a Delaware corporanon, by deed as recorded tn Volume 1542, Page 149, Deed Records of Denton County, Texas, said 3,382 square feet or 0 0776 acres of land being more parttcularly described by metes and bounds as follows COIvEvIENCI2N'G at an tron md found being the southwest comer of Tract 2 of smd Marg-Sam Subd~v~ston and the southeast comer of a tract of land conveyed to Paul L Lubbers and wife, V~rg~n~a L Lubbers, by deed as recorded in Volume 604, Page 351, Deed Records of Denton County, Texas, and being m the existing northern r~ght of way line of U S 380, T~CE North 80 degrees 43 minutes 02 seconds East along the ex, sung northern right of way hne of U S 380 for a d~ance of 468 35 feet to an u'on rod set m the new northern right of way hne of U S 380, at the POINT OF BEGI2q'N]~G, (1) TI-I~CE North 74 degrees 16 minutes 15 seconds East along the new northern right of way Line of U S 380 for a chstance of 100 64 feet to an ~ron rod set at an angle point, (2) ~CI~ North 80 degrees 43 minutes 55 seconds ~:-.st along the new northern right of way Line of U S 380 for a d~stance of 200 00 feet to an ~-on wd set at an angle point, (3) ~CE North 87 degree,~ 08 minutes 05 seconds East along the new northern right of way hne of U $ 380 for a chstance of 100 63 feet to an ~ron rod set m the ex~stmg northern right of way hne of U $ 380, TI.-I]~C~ South 80 degree~ 43 minutes 02 seconds West along the ex~stmg northern right (4) of way hne of U $ 380 for a d~ance of 400 00 feet to the POINT OF BEGINNING, and cov~'~!m~g an a. rea of 3,382 square feet or 0 0??6 acres of land, more or less 51 ! SCHEDUL~~= IFZbG llGG $CMEDULE a ~eplat cf Loss 1, 2 and 3 of SOUTPRIOGE VrLLAGE SHOP°.'~S CENTER, an Add ':l°nLOT 2R, so the C,ty of Denton, Texas, according to the plat the-eof recorded m Cablre: E, Slide 392, Plat Records, Oenton Count/, Texas p~RCE- ti (EASEMEN' ESTATES) r ^cr ^, Be ng a tract or parcel o' containing land acres, John McGowan Survey, Abstract No. 797, Denton ¢oun:t, Texas, being a :arc of that csrsam (called) 4.90B acre tract deeded by Robert Glen N~cholsc-, et ux, to Porter on %he ~Tth day of May, 1965, and recorded in Volume ~38, Page Jehr 538, D,¢.D R., same being ou% of a certain 18 712 a¢-e tract, as :e- plat o~ Nosh Corpora%~on, Cons.l:~ng Engineers, ~n Denton, Texas, dateo ..~e 3, 1983, said 6 g888 acres being ~ore particularly descr~bao by metes arc :ounds as ~ollowe: ¢OMMENCIN~ at the Nort-wast corner of sand 4.9~ ac-e tract, same ~e~ng on the Southwest R.O.W. l~ne of Interstate Hnghway No. ~EE, and being a so on the East l~ne of J. W. Erwnn Subdivision (recorded ~n Volume 337, Pace 35~, O,¢.O.R.); THENCE, South 39 degrees ~ minutes ~ seconds East, along sa~d Southwest R,O W lme, a d~stance of 58.6~ feet to an argle point, THENCE, South 47 degrees 27 m~nutes ~ seconds East, continuing along sa~d Southwest R O.W. l~ne, a distance of 34.~ Feet to a point, same oemg the most Easterly corner of a certain ~.127 acre tract and also being the point of mtersect~on of said Southwest R,O.W. l~ne w~th the Westerly R 0 ~. l~ne o~ R~dgewey Dr~ve (based mn a width of 8~ Feet); THENCE, Seut. h 47 degrees 27 mmutes ~ seconds East, contmu~ng a,cng sa~d Southwest R,O.W. 11ne, a distance of B~,~O Feet to a point of ~r:ersectlon of sa~d Southwest R.O.W, ~,~e w~th the Easterly R O,W. l~ne of sa~c ~dgeway ~-~ve, same being the =os= Northerly corner o~ a cerss~n ~ 772 ac-e tract (Lot., Block 1 Of ~he 3~nn~ng Subdlv~son), T~ENCE, Scusn 47 degrees 27 m~nutes 08 seconcs East, continuing ~ cng said Southwes: ~ 0 W. /ms, ~ d~stance of 230 5~ Feet to an angle po,-:, THENCE, Sou~h ~3 degrees ~7 m~nu%es 26 seconds Ease, continuing e cng sa~d Southwest R 0 N /1ne, ~ c,s~ance of 4~.34 Feet to an angle po -l; THENCE, South 47 degrees ~7 m~nutes ~1 seconds East, continuing a~ong sa~d Soul-west o O,W ~lne, ~ ols:ance of 48:7 reel to :re mos~ Nort-e-ly corner anm POINT OF BEGINNING :' the tract here~n desc-~bed, THENCE, South 47 :egress 27 m~nuteS B! seconds East, continuing a org sa~d 53 ~ 0 W. l,ne, a distance of 33[ 32 Feet to a point for the most Easterly corner of the tract he~e,n described, THENCE, South 44 degrees 43 m~nutes 54 seconds West, departing sa~d Soushwest R 0 ~ 1,qe, a dis:anco of 361 ~7 feet to a point for corner, THENCE, qorth 45 degrees 16 m~nutss ~ secords Wes%, a d~stance or 9,58 feet ~0 a ~O,r% for co~ner, L,.IC., South 44 cegreee 43 m,nutes 54 seccncs Wes:, a d:stancs or !78 ~ feet ~0 a pOInt for corner~ THENCe. South ~0 degrees 15 m~nutes ~6 seconds Eas~, a distance c .... 1 feet to a point for corner; THENCE, South 44 degrees 43 m~nutes 54 seconds Wes:, a distance a~ 11~ 00 feet to a point for corner, THENCE, South ~l) degrees 16 minutes 86 seconds East, a dlssance or 48.76 feet to a point for corner; THENCE, South 89 degrees 43 minutes $4 seconds West, a distance c- 25~ 94 feet :o a point for the most Southeast 6ou[hwest corner of the tract nare~n dsscrlbec; THENCE, North ~ degrees E~ minutes ~8 seconds West, a d~stance or 446 39 feet to a poln; on the South ]1ne of said 4,9B~ acre trac=; THENCE, North 89 degrees 17 m~nutes ~8 seconds West, along said South line, a d~stance of 185.18 feet to a potnt on the East R O.W l~ne of sago Rldgeway Drive, being the most Westerly Southwest corner of the tract here~n described; THENCE, North ~ degrees ~5 m~nutas 14 seconds West, along said East R O.W. llne, a distance of 45.~ feet to a point for corner; THENCE, North 89 degrees 54 m~nutes 46 seconds East, departing sa~d East R O.W. line, a d~stance of 211.74 feet to a point for corner; THENCE, South 4E degrees ~ minutes 14 seconds East, a distance of 3~ ~ feet to a polnc for corner; THENCE, S¢~:h a~ degrees gE minutes !4 seconds Ess:, a distance c- Z26.~7 feet :o a po ': for co-neT; T~ENCE, Nc-th 44 degrees 43 minutes 54 seconds East, a distance or 290 O9 feet to a po,-c rOT co-qer, ?HEhCE, ~or:h 45 cegrees 16 m~nutes ~6 seconds Wes:, a d~stance c- 37,gg feet to a pc,nc For corner, THENCE, Ncrth 44 degrees 43 m~nutes 5~ seconds East, a d~stance cf 348.46 feet :o the PC'N? OF BEGINN:NG, contam~ng w~h~n these ~etss and boo,cs, 6.~08g acres (~.,36g sq.are feet) of land, ~ore o' less 54 01160 Me,owen 8~'~ey, ^bstrac: Nc. 797, Oenton Court:t, Texas, be n~ a ~art of that certain (ca~ed) 4 ~S acre trac~ deeded by Rcber~ ~len N~cholsc-, et ux, to John Por~' on the 27=h day of May, 1966, a~d rocor=ed ~n Volume D ¢ D R , sase be ng ou; of a certain 18.712 ac-e ~ract, as po- ~ a~ of Nasa ¢or~orat~or, ~onsul~ng ~ng~neers ,n Oenton, Texas. dated June 3, 1983, sa~d 6 43S3 ec-e tract be~rg ~ore pars,cularly describes by metes ant ;cunds as follows: ¢oMMBN¢!N~ at the Norsnerly corner or said ~ 9~S ac-e tract, same being on the Southwest ~ 0 ~. l~ne or interstate H~ghway No 35~ and also be -c on the East boundary 1,ne of the J ~. Erw~n euod~v~s~on (recorced ~n Volume 3~7, Page D.¢.DR,), THENCE, South 39 degrees 82 m~nutes S~ seconds East, leaving sa~c boundary i~ne of J.W, Erw~n eubd~v~s,on and along sa~d Southwes; ~ 0 W l~ne of Inters:ate H~gbway No. 3EE, same be3ng the North boundary l~re of sa~d 4 9~ acre tract, · d~s~ance of 68.6~ feet to an angle THENCE, South 47 degrees 27 m~nutes SO seconds East, continuing a,crg sa~d Southwest R.O,W. l~ns, same being the North boundary l~ne of sa,o 4 9BO acre tract, a d,stance o~ 34,2~ ~eet to a point, same be,ng the mos~ ~aetarly corner of a certain ~.127 acre tract and also being the ps,n: of ~ntersact~on of sa~d Southwest R.O.W. l~ne w~th she Westerly R 0 ~. l~ne of R~cgeway Or~ve (based on a w~dth of 88.~8 ~aat); THENCE, South 47 degrees 27 minutes ~S seconds ~ast, continuing along sa~d Southwest R.O.W. l~ne, same being the North boundary l~ne o~ sa~c 4.9~ acre tract, a d~ssance of 88.~8 fee% to a point of ~ntarsect~on of sa~d Southwest R O.W. l~ns w~th the Easterly R.O.W. l~ne of R~dgeway Or~vs, same being the most Northerly corner of a certain 0,772 acre tract (Lot 1, Block ! of the Dunning eucd~v~ston); THENCE, Sou~h 47 degrees 27 m~nutes 08 seconds Ess:, continuing a,ong sa~d SoutHwest ~.O.W. line, same being ~ha North boundary l~ne o= sa~c 4.98~ acre tract, a o stance of 2~,SS feet to the POINT OF BEgiNNING of the tract here~n descrloe~. T~E~CE, So. tn 47 degrees 27 m~nutes ~8 seconds East, cont,nu,ng along sa~d Soushwes: ~ 0 W 1,ne, same being %ne North bcunoarz l~ne of sa~c ~.900 acre tract, a c stance of 3S ~ feet to the Northeast cc--er or sa~d ~ 90~ acre t'acs, sara be,rig a co-ret of the tract here,n des:-,bed, THENCE, Sc.th 53 csgrees 4~ m~nu:es 2~ seconds East, cont~nu.ng a cng sa~d Sou,hwe., ~ ~ W l~na, a o~ssance cF ~52 34 tee. :oe corner here~n TME~I¢E, $c.:~ 47 cegrees 27 m~nutas O~ eecords East, continuing a c~g sa~d 55 S¢~tnwest q,O.W. 11ne, a distance or 48 !7 feet to the m~st Easterly corner of the tract Herein cater cad, THENCE, Sc.ch 44 cegreae 43 minutes 54 seconds West, leaving sa,d Southwest R.O ~ llne. a d,s~encs oF 348.46 Eeet to an ~nter~or corner of -he tract harem described; THENCE, $o~:~ 45 Degrees !5 minutes ~6 seconcs East, a d~stance cr 37.~ feet to s coffer oP t~e tract ~ere~n described, THENCE, South 44 degrees 43 m~nutes ~4 secords West, a d~stance c- 29~ ~ feet to the mos: Southerly co-~er of the tract he-sin described, THENCE, North ~ degrees 35 m~nutes !4 seconds Wes%, a distance cr ~25,~7 feet to an interior corner o' the trac= herein described, THENCE, North 45 degrees ~5 minutes 14 seconds West, a d~stance or 3~ ~ fee~ to an in[error cor~er c~ the tract here~n describer, THENCE, South 89 degrees ~4 m~nutes 46 seconds West, a d~stance c 2...74 feet to a point on the East ~ O.W. l~ne cf Rldgeway Or~ve, same being she most Westerly Southwest corner of the tract here~ described, THENCE, North ~ degrees ~5 m~nutes !4 seconds West, along sa~d Easterly R.O.W. l~ns of R~dgeway Drive, a distance of 454.91 feet to the po~n~ of curve of a curve to the right having a central angle of 42 degrees 38 s,nutes ~ seconds, a radius of 329.7! feet and a length d~stance of 245.334 rest, THENCE, in a Northerly d~rectton, contmulng along said Easterly q O.W. 14ne of Rldgeway Drive, following said curve to the r~ght, a length d~ssance of 2~.334 feet to a point on the arc of ea~d curve to the r~ght, sase being the most Westerly Northwest corner of the tract herein described, THENCE, South 71 degrees 13 m~nutee 16 seconds East, leav4ng sa~d Easterly R,O,W. line of Etdgeway Drive and along the South boundary line of sa~d ~.772 acre tract, a distance of 144.~E feet to an ~nter~or corner of the tract hare~n descrtb~ THENCE, Nor%h~dagrsee ~4 minutes ~7 seconds East, along the Easterly boundary ]~n~atd ~.77Z acre trace, a d~stance or 15~.Q~ fees =o a point =n the Sout:hwe~ q.O.~. I nm of said interstate Highway No. 3EE, same being %he mca= Easterly corns- aF sa~d ~.772 acre trac~, and also being the POINT OF BEGiNN?IG c= the =fac= 'e°a~n described, containing w~thm these :aces and · bounds 6.43~ acres (25~,~5 square feet) of land, more or less TRACT C: Being a Crac~ or ~arca~ :' land conta n~rg 5 297! ac-es of land, s.cua~ed in the John Mo$owan Survey. Abstact Nc 797, Oen~cn Cocnty, Texas, 5e~ng a part of that ce-tarn (caller' 4 9~0 ac'e t-act deeded bv ~obert Glen ~.cholson et ? ~ ~ay, 19~5, ant recorded in ~a~ume 538, ~x, to Jo~ ~orte' on :-~ .7,h day o' 56 Page 538, 0 C D R., s:-e being out of a certain 18 7!2 acre tract, as per plat of Nash Cormoratlon, C.'-sultlng Eng:neers ~n Denton, Texas, dated June 3, lg83, sa~o S.2971 ac-e tract being more particularly desc-~bed cy metes and mounds as rollow~' COMMENCING at t~e Northerly come~ of sa~d 4 908 ac-e tract, same be'ng on the Southwes% R,O,W ~ne or in:er~:a:e Highway No 35E ~n~ also be,~e on the east boundary lme of the . W Er~n Subdivision (rece-de~ ~n Vol.,~e 337, Page 35~, D,C 2,R,), THENCE, South 3g dog-eot ~2 minutes ~ seconds East, leawng sa c boundary i~ne of J.W ?wm Subdivision and along sa~d Southwest ~ 0 W. l~ne of Interstate Highway C~, same being the North bo.hoary l~ne or sa d 4 acre tract, a d~stance of 68.~ Feet to an angle point, THENCE, South 47 degrees 27 minutes B8 second~ Eas:, cont~nu,ng along sa~d Southwest R.O,W. l~ne, same being the North boundary l~ne of sal~ : 900 acre tract, a distance of ~4,2~ feet to a point, same be ng the most of ~ald ~outhwest R,O W. ]~ne with the Westerly R 0 J. l~ne of R,~geway Drive (ba~ed On a w~th of 80 ~ feet); THENCE, South 47 degrees 27 mlnute~ ~8 seconds East, continuing ~cng said Southwest R,O.W, l~ne, same being the North bounda-v i~ne of sa e 4.9B~ acre tract, a distance of 8~,~ feet to a point of ~nte-sect~on of sa~c Southwest R.O.W. l~ne with the Eaetmrly R.O,W. l~ne of sa~d R~dgeway Dr~ve, same being the mo~t Northerly corqer of m certain ~,772 acre trmct (Lot 1, ~lock I of the Dunning Subdivision) as recorded ~m Cabinet "C", Pages 355 and 35~, D C P THENCE, South 47 degrmes 27 minutes 88 seconds East. continuing along sa~d Southwest R.O.W. ]~ne, same being the North boundary l~ne of sa~d 4.9~B acre tract, a d~s:ance of 2~8.5~ feet [o an angle point, same being the Nor=beast corner of said 4.g~ acre THENCE, South 53 degrees 47 m~nu~es 25 seconds East, continuing along Sou[hwes% R.O.W. l~ne, ~ d~s:amce of 452.34 fee: %o an angle point, THENCE, Sou~-47 degrees 27 m~nu%es ~1 seconds [ass, continuing along said Southwas,% R ~..~a a dls:ance of ~79.49 fee~ ~o %re POINT OF BEGINNING of the tract h~' THENCE, South ~ d~grmes ~7 minutes ~1 seconds East, cont~nu~rg along Southwest R,O.W. lira a :,stance of 348.61 feet to ~ =mint for corner of the tract hera,n THENCE, Sc~th 24 degrees 48 minutes 43 seconds East, a d3stanca or 85.19 feet to an inter,or come, :~ she tract ne-eln descrlbec, same being cn the West R,O W. l:re o~ a ~ mc== road easeqe-t (recorded ir Volume 333, Page 19, DSO R); THENCE, South ~ deg-ees 4] mlnute~ 21 seconds Eats, along the West R.~.W. Ime of said 5~ foot -:ac R,O W easement, a d~sta-ca of 184.~3 'eot to a PO~qt for tqa Southeast c=rrer of cqe tract hereof ..sc, 57 T,.~C., South 89 degrees 43 alnutes 54 seconos Wes:, a d~stance of 752 29 feet to the acs: Southwesterly corner of the Lrac: harem described, THE4¢E, ~or:h a~ degrees L5 m3nutes a5 seconds Wes:, a distance of 4a.75 feet Co a corner of the :~c: herein described, THENCE, North 44 degrees 43 ainu:es 54 secants Eas:, a distance =rlIa aa feet to an ~n:e-~or corse- er the tract herein descrlbec, FPENCEo ~orth 00 cegrees [6 m~nuCes a5 seconds Wes:, a distance ~r !l 3l Peet to a corner of the tract herein described, TH.4C., North 44 degrees 43 m~nutes 54 seconds East, a distance :r !TO ~$ feet to a corner of the tract here~n described, THENCE, South 45 degrees 15 minutes ~ seconds East, a distance :r 9,~8 to an ~nter~or corner o- the tract here~n descrlbec, THENCE, North 44 degrees 43 m~nute$ 54 seconcs Ease, a distance :- 35:a7 feet to a point on the Southwest R.O.W. llne of said Ir:arstate Highway Nc same being the POINT OF BEGINNING of the tract harem descrloed, o., w~th~n these metes ant bounds 5.297! acres (23Q,744 square Fe .... or land, more or less. 58 SO T COMP ~ven A Ad~, CFA Apn{ 20, 1~98 Mayor and Cn~y Council City of D~n~on 215 East McKlnney ~t~, T~ 72601 ~ ~ O~tl,m~. You ~ ~ ~ ~ ~ ~ 1~ ~ ~ ~ of Uulm~ U~ Co~ I~ I~ ~un~ (~" ~ ~ "~ a T~ ~ ~ ~ ~ wl~t ~ ~ ~e fi~o~ ~m of~ ~ ~ ~ mla~ m ~ ~m~ ~a ~ ~t m Un~ ~ Ov) ~ ~ ~m~ ~ ~ ~ m~ ~ fl~l ~ ~ IU~ ~ ~ (v) a~uf~o~~91 ~ ~ I~ ~ ~oK W~ l~wgn~m B^~q~u~'g S~g~ 1946 59 SENT BY 4-20-98 , 3 30PM [~ ~2 ~[ ~ ~j [ ] -] ~/)40349723~ ,# 3/ t Preddeut and Board o£ Dfreetors 'l¥1Mty River Authority Ju~ 26, 199~ (VI) cop~es at' Invoices for five pieces at' eqmpmcn£ by IUSA for delivery Umuxi Copper's besim~ plan is to produ~ and d~smbuto 0oppe~ wire for the comm~clal and r~deutud ~omiruct~o~ mark~ ~ lhe 41 cont~mous States w~bm the Un~J ~ Addalonally, Ihe Comp~my will d~s~pU~ ~la/ml produ~, pwduced at ~ tooations, ~m the Dcuton, Texan facd~£y (Inunced by a~l equ~y rattiest of IUSA Inclu~rlas IJnldas of Mcxico (IUSA) tiro parent ofUnlicd Copp~' addilaomJly, IUSA flnanom th~ mv~lo~y and workm{{ Imuud,~i l~l'ormaison of li~ Corn{many rh~ Cx~npamy ~s currc~lly being uudakxi by Deloitte & Touch~ Ilma~ atatr~i should be compl~d by lt~ ~nd of Ap.{ For tbe purpo~ of~,s l~uli~l r~vlow and aha{yin, w~ haw ~min~i tt~ documcats describ~ al,ova and ~ We havo llat~r assumed i{~ ~ has u~ tgg~l any rnaU~ advc~s~ cha~ ,n ll~ bus,u~s havo vi~{l~d ~ ~ fi~{{~ tn czor4~{, r~ mind haw w~ {ndmp~d~t ~ ofth~ Company Th~ op,moo ~xpress~d here,n orhhe Coml~ny ~ F~lxuuty 28. 1~98 9om¢ oJ'lhm mmjor ~a~ors w~ have oo~midered ,n our ana{ymts am mo~ out below I Th~ ~nl~ly wa~ ~s c~rc~l{y op~aliug m Copl~{{, i ~ as a dl~rlbutmu COmlm~y 2 [USA, tbe ~ ~c~nl~my, ~uorled to havo n.-vanu~ {~4 and { ~}6. ~vely. ~d ~{S milhon {n {h~ tim1 tuna monthm of 1997. 3 IUSA r~ to haw r~v~nu~ of ~({21 9) million m~l $28 ? m,lhon ,n 1994 m~d 1996. .mmiu~iwly. and ~.6 md{{ou in {h~ f]~ ~ month~ of { ~'. 4 liJSA lm:~d as~t~ of~r/43 ~km m 1~)4 and $x9~0 md{~ ou :~u~utoml~r 30, ]998, 5 ~A ~~ of~ m~ll~m l~d~5 mHl~m~3~ 1~7, 7 In ~ fl~ ~ ~ 1~ Un~ ~~ a ~ ~$1~,~ ~ ~ ~$64 mHl~ 6O Pr~ldmst and Board of Directors Trinity River Amltorlty Juna 2~, 1~197 tho agreement. It ts cmr c~pm~on that as of Febnmty 28, 1998, th~ finanolal msotuces of the Company am suffi~loflt to provld~ nm~ol3~bl~ asgori~lt49~ i~t ali obll~ntton9 o_Fthe tax nlmtomont agrmmnetlt wll be met. Ih¢ opmm~ ~ fi~h m ~s ~t ~ ~l~y fi~ ~e bellcflt otto C~W and may n~ 5o relied upon in nny manner whalsoever by any other person V~vthout prior w~ten consent Ibm letter may rmt b~ quoted m whol~ or m pa,'t or olherwlse refi~ to m any document or other report. Vmy ~uly yours, I~R,qT ,qOU'I~IWES r COMPANY Stereo A Adams, CFA pr~pal 61 EXHIBIT O INANCE No AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH UNITED COPPER INDUSTRIES INC SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE, SETTING FORTH THE VARIOUS CONDITIONS PRECEDENT TO UNITED COPPER RECEIVING THE TAX ABATEMENT, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH UNITED COPPER INDUSTRIES TO PROVIDE ELECTRICAL SERVICES FOR A MINI- MUM PERIOD OF FIVE YEARS, PROVIDING FOR A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, on the 3rd day of February, 1998, after a public heanng duly held ~n accor- dance w~th §312 201 of the Act, the City Council passed Or&nance No 98-016 (the "Or&- nance") estabhshmg Re~nvestment Zone No I, City of Denton, Texas as a commercial/industrial re~nvestment zone for tax abatement (the "Zone"), as authorized by T~tle 3, Chapter 312, Sub- chapter B of the Texas Tax Code (the "Act"), and WHEREAS, on the 12t~ day of December, 1997, Umted Copper Industries, Inc subm~t- ted an appheat~on for tax abatement w~th various attachments to the City concermng the contem- plated use of eertatn property located w~thln the Zone, and WHEREAS, the City Council finds that the contemplated use of the premmes and the contemplated ~mprovements to the premmes, as m&cated by Umted Copper Industries, In¢ are consmtent with encouraging the development of the Zone in accordance w~th the purposes for as creation and are ~n comphance w~th the Denton Tax Abatement Policy, and WHEREAS, the City Council deems It in the pubh¢ ~nterest to enter into a Tax Abate- ment Agreement w~th Umted Copper Industries, Ine, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS ~ That the fin&ngs contained ~n the preambles to thru or&nanee are true and correct and are adopted as a part of the whole ordinance ~ That the C~ty CouncH finds and determines the following 1 That the contemplated use of the premises and the contemplated ~mprovements of the prem- ises, as in&eated by United Copper Industries, Ine are ¢onsmtent w~th encouraging the de- velopment of the Zone m accordance with the purposes of its creation and are ~n eomphance w~th the Denton Tax Abatement Pohcy 2 That the City Council finds that the improvements sought by Umted Copper Industries, Inc wtth~n the Zone are feasible and practical and would be a benefit to the land to be included In the Zone and to the City after the expiration of the Tax Abatement Agreement to be entered into with Umted Copper Industries, Inc 63 3 That the City Council finds that the Tax Abatement Agreement contmns all the terms which are manditonly required to be Included In any tax abatement agreement under §312 205 of the Act 4 That, in accordance with Tex Tax Code §312 2041, the City Council finds that not later than the date on which the City Council considered this ordinance, and not later than the seventh day before the date the City enters into a Tax Abatement Agreement with United Copper In- dustries, Inc, that the City Manager, through the Director of Economic Development, who are hereby designated and authorized by the City Council to give such notice, delivered to the presiding officer of the Denton Independent School District and Denton County a written notice that the City intends to enter into this Tax Abatement Agreement with United Copper Industries, Inc, and that this notice included a copy of the proposed Tax Abatement Agree- ment in substantially the form of the Tax Abatement Agreement attached to this ordinance ~ That the Mayor, or in his absence, the Mayor Pm Tern, is hereby author- lzed to execute a Tax Abatement Agreement with United Copper Industries, Inc, substantially in the form of the Tax Abatement Agreement which is attached to and made a part of this ordinance for all purposes as if written word for word herein Provided, however, that the Mayor shall exe- cute the Agreement simultaneously with the execution of similar tax abatement agreements with Umted Copper Industries, Inc executed by the Denton Independent School District and Denton County so that all these tax abatement agreements take effect at the same time S~ECTION IV. That the Mayor, or in his absence, the Mayor Pro Tern is further author- ~zed to execute the attached contract between the City of Denton and United Copper Industries, Inc to provide exclusive electric service for a period of not less than five years, in substantially the form of the Electric Service Agreement, which is attached to and made a part of this ordi- nance for all purposes as if written word for word herein SECTION V. That the City Council hereby instructs and authorizes the City Manager to inspect, audit, and evaluate the progress of United Copper Industries, Inc to determine if it has met all of the conthtions of the attached Tax Abatement Agreement prior to the tax abatement going into effect ~ That if any section, subsection, paragraph, sentence, clause, phrase, or word in th~s ordinance, or application thereof to any person or circumstance is held invalid by any court of competent junsdmtion, such holding shall not affect the validity of the remaining portions of this ordinance, the City Council of the City of Denton hereby declares that they would have enacted such remalmng portions despite any such validity SECTION VII. That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the /¢0~/~'j day of/~'(fl,. , 1998 ATTEST JENNIFER WALTERS, CITY SECRETARY ',PP~V~D A~S TO LEGAL FORM ERBERT L PROUTY, CITY ATTORNEY EXHIBIT F U~.~IMOUS C0~$~'~' I~ LIEU OF SF~'CI~L OF BO~D OF DIBECTOBS OF U~I'~'su COFFER I~DUSTR1ES. INC. The ~nd~raign~dj oonstitating a~ of the member, of the Board fore ~ effa~ ~ if ~tad ~ ~ ~ote of t~ di~et~s at ~,~-~Cu'~'s~ to be effeotlve as of t~ 10th ~ of Sept~er 1998. CONSPIRING ~L ~'B~' ~S OF ~'~ ~US~S~ IBC. 180 HONOEfl~LE TIN HODGES/COUHTY CLEEK On Dee 30 1998 Doe/Hum : 98-R0117559 Doo/Txpe : AGR Eeeo~zng: 125.00 Doc/Mgmt ~ 6.00 Receipt fl.. 46298 Deputy - SHEttEY ORDINANCE NO AN oRDr ANCE AUTHO Z NO MAYOR TO EXECUTE AN ENDMENT 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 Orthnance No 98-247 passed on August 18, 1998, the City Council au- thorized the Mayor to enter ~nto 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 ax years, and WHEREAS, the Section of V(B) of thc Agreement provides that lfUmted Copper Indus- tries, Inc (Owner) allows the core employment, w~thm the terms of this Agreement, to fall below 130, or the Owner fmls 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 conunerclal activity, the C~ty Council deems it in the public interest to ehm~nate 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 ehm~nate the above-mentmned annual payroll and employment thresholds con- tamed in Section V(B) of the Agreement ~n 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 rT~/~ay of _~/~ ,2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY ',ITY ATTORNEY BY ~ / Page 2 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 18th 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, retmn existing businesses, and to stimulate business and commercial actlwty 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 foals to construct any structures or other improve- ments, or fails to install any eqmpment 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 foals to maintain performance of its contractual obligations for the full period of the contract, then th~s 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), foalure 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 3 That this Amendment to the Base Agreement was executed on this the c'~ JS~ day of~, 2001 by duly authorized officials of the City of Denton and by United Copper tfidusmes, Inc C1TY OF DENTON, TEXAS EULINE BROCK, MAYOR ATTEST JENNIFERWALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY UNITED COPPER INDUSTRIES, INC A TEX~ ~. ORATION T~tle ~_c..~ ~/-~ ~ r~ ATTEST' ~y ~c Page 2 STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Pubhc ~n and for smd State of Texas, on this day personally appeared Euhne Brock, Mayor for the C~ty of Denton, known to me to be the person who s~gned and executed the foregoing instrument, and acknowledged to me that this strument was executed for the purposes and consideration thereto expressed ! Glven under my hand and seal of office th~s the 6q !'~day of d~/:~, 2001 [[~ ~1~ ~j My Comrnlsalon E~ms [ No~h2y Pubhc in and for the State of Texas ,,,,,,.,,,.,0. ti ,y omm ss on .r. STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Pubhc In and for smd State of Texas, on this day personally appeared c H,q~t~ ~. ,4 ~,9,42~4;'~ , on behalf of United Copper Indus- tries, Inc, known to me to be the ¢~ ,~ff4 cog Ve- of Umted Copper Indusmes, Inc ~d to be the person who s]~ed ~d executed the foregoing ]nstment, ~d ac~owledged to me that this instrument was executed for ~e pu~oses and consideration therein expressed Given ~der my h ~ day of ~q ~S ~ ,2001 ~ ~mCHAELS ~ ~ , ~ ~[~ NOTARYPU~tC 0~_~/ /~ ~ ~~ot~ Pubhe ~ ~d for the State of Texas Co ls on q Page 3