2001-306 ORDINANCE NO
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO
THAT CERTAIN TAX ABATEMENT AGREEMENT WITH UNITED COPPER INDUS-
TRIES, 1NC WHICH ELIMINATES THE MINIMUM EMPLOYMENT AND ANNUAL
PAYROLL THRESHOLDS, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, by Ordinance No 98-247 passed on August 18, 1998, the City Council au-
thorized the Mayor to enter into a Tax Abatement Agreement with United Copper Industnas, In¢
provlchng a 25% tax abatement on all increases in real property values as set forth in the Tax
Abatement Agreement for a period of SlX years, and
WHEREAS, the Section of V(B) of thc Agrccment provides that if United Copper Indus-
tries, In¢ (Owner) allows the core employment, within thc terms of this Agreement, to fall below
130, or thc Owner fails to reach at least a payroll of $4,420,000 for any of the SlX years of the
abatement, the abatement will be reduced to zero, and
WHEREAS, that in order to promote economic development and to stimulate business
and commercial activity, the City Council deems it in thc public interest to chmlnat¢ thc em-
ployment and annual payroll tkresholds m&¢ated above, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That thc Mayor, or in her absence thc Mayor Pro Tern, is hereby authorized
to execute an amendment to that certain Tax Abatement Agrccmcnt between thc City and United
Copper, In¢ to ehmlnat¢ the above-mentioned annual payroll and employment thresholds con-
tained in Section V(B) of thc Agreement in substantially the form of thc Amendment which is
attached hereto and made a part of this ordinance for all purposes
SECTION 2 That this ordinance shall become effective lmm¢&ately upon its passage
and approval
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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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 Farst Amendment to that certain Tax Abatement Agreement between the C~ty of
Denton, Texas, and Umted 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 C~ty
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 ~n good standing to do busi-
ness an the State of Texas, duly actang herean by and through ars authorized officers
That ~n order to promote local economic development, retain ex~stIng businesses, and to
stimulate busaness and commercial actavity in Denton and for other good and valuable consldera-
taons, the receipt and sufficaency of wbach ~s hereby acknowledged, the City and Owner agree to
amend the Base Agreement as follows
SECTION 1 That Section V(B) of the Base Agreement ~s hereby amended to read as
follows
B If, however, the Owner fails to construct any structures or other improve-
ments, or falls to ~nstall any eqmpment or other tangible personal property within the
Premises by January 31, 1999, ffthe Owner finis 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 finis to execute the contract with the City to provide electric
sorvace or falls to maintain performance of ars contractual obligations for the full period
of the contract, then th~s Agreement may be terminated by the Caty In this event, Owner
shall refund to the Caty all tax abatements prewously granted and received under this
Agreement w~th interest on the amount to be refunded at six percent (6%) per annum
Addmonally, as set forth an 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 ~n accordance w~th the Caty'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
v.~y_ SECTION 3~ That thas Amendment to the Base Agreement was executed on this the
~ ] J day of/~/g,,~, 2001 by duly authorized officials of the City of Denton
and by Umted Copper ~dustnes, Inc
CITY OF DENTON, TEXAS
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
UNITED COPPER INDUSTRIES, INC
A TEX/~ ORATION
Title ¢c.'.3 ~-~'/-~'(~9
ATTEST
BY g ~~~
Page 2
STATE OF TEXAS §
COUNTY OF DENTON §
Before me, the undersigned authority, a Notary Public in and for smd State of Texas, on
this day p~rsonally appeared Euhne Brock, Mayor for the City of Denton, known to me to be the
person who signed and executed the foregoing instrument, and acknowledged to me that this in-
strument was executed for the purposes and consideration thereto expressed
Cnven under my hand and seal of office this the 6~/~day of ,2001
My Commission Ex,res No~u'y Pubhc m and for the
June 21, 2006 State of Texas
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 ¢ O,,w~t~ ~. ,~ ~ , on behalf of Umted Copper Indus-
tries, Inc, known to me to be the c ~o ,~7v6~ t-off ~.- of Umted Copper Indusmes, Inc ~d
to be ~e person who s~ed ~d executed the foregoing lns~ment, ~d ~owledged to me
· at ~s ms~ent w~ executed for the p~oses ~d consideration therein expressed
Glven ~d~ my h -.~ ~ '.. 'day of ~ ~S ~ ,2001
~ ~ STATEOFTEXA8.,
State of Texas
Co .lon xplr,
Page 3