WHEREAS, Brookshire Grocery Company
THE STATE OF TEXAS COUNTY OF GRAYSON
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DEVELOPMENT AND TAX ABATEMENT AGREEMENT WITH BROOKSHIRE GROCERY COMPANY
Brookshire Grocery Company (BGC), a privately held retail (grocery) company, (hereinafter "Developer"), by entering into this Chapter 380 Economic Development Agreement ("Agreement"), pursuant to a program initiated by the CITY OF POTTSBORO, TEXAS, a Texas municipal corporation (hereinafter "City") pursuant to Chapter 380 of the Texas Local Government Code, desires to construct a retail shopping center within the City; and
WHEREAS,
Developer assistance in the City's overall economic development initiatives as well as the construction of improvements on the Property, will result in economic development for the City, including the construction of Developer's retail shopping center ("Center") comprised of 37,000+ square feet on the real property hereinafter described that provides ad valorem tax revenue to the City in the form of business personal property taxes and real property taxes on taxable structures as well as the potential for increased property values on buildings and improvements within and off of the Property; and
WHEREAS,
accelerated land development will provide ancillary business growth including product, services and/or sales and jobs for the City; and
WHEREAS,
Chapter 380 of the Texas Local Government Code provides that Texas municipalities may create programs to promote local economic development; and
WHEREAS,
City wishes provide incentives to Developer to assist in the economic development of the Property; and
WHEREAS,
City has concluded and hereby finds that this Agreement embodies an eligible "program" and clearly promotes economic development in City and, as such, meets the requisites under Chapter 380 of the Texas Local Government Code and further, is in the best interests of City and Developer; and
WHEREAS,
Developer has requested that City provide financial accommodations through the payment of incentive payments for Eligible Projects (as hereinafter defined) developed on the Property which payments will be funded from municipal general funds derived from the increased property taxes paid; and
WHEREAS,
all such financial accommodations from City to Developer are referred to in this Agreement as Developer Incentive Compensation ("DIC"); and
WHEREAS,
Developer understands and agrees that: (a) in agreeing to future payments of DIC, City is relying upon Developer's representations, warranties and agreements, as set forth and provided for in this Agreement; and (b) the Developer shall be and shall remain subject to the terms and conditions of this Agreement.
WHEREAS,
for and in consideration of the above recitals and TEN DOLLARS AND NOll 00 ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Developer agree as follows:
NOW, THEREFORE,
1.
DEFINITIONS.
The following words shall have the following meanings when
used in this Agreement. Eligible Property Value. The words "Eligible Property Value" shall mean a. (i) the amount of ad valorem real property taxes paid by Developer on the Property for any tax year in which DIC is to be paid under this Agreement minus the amount of ad valorem taxes paid on the Property for the tax year prior to the construction of the Eligible Project; and, (ii) the amount of ad valorem business personal property taxes located on the Property for a particular tax year, the value of such business personal property on the tax rolls of the Grayson Appraisal District as of such tax year. b. Affiliate. The word "Affiliate" means (i) all persons, corporations or other entities, if any, controlled by Developer; (ii) all persons, corporations or other entities, if any, which control Developer ("Parent"); and (iii) all persons, corporations, or other entities controlled by a Parent. As used in this definition of Affiliate, control means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities or partnership interests, by contract, or otherwise. c. Agreement. The word "Agreement" means this Chapter 380 Economic Development Agreement, together with all exhibits and schedules attached to this Agreement from time to time, if any. d. City. The word "City" means the City of Pottsboro, Texas. For purposes of this Agreement, City's address is 528 Hwy 120E, Pottsboro, Texas 7 5076. e. Intentionally deleted. f. Developer. The word "Developer" means Brookshire Grocery Company (BGC), a privately held retail (grocery) company whose address is 1600 W. South West Loop 323, Tyler, Texas 75701. g. Developer Incentive Compensation ("DIC"). The words "Developer Incentive Compensation" mean periodic payments to Developer based on the actual ad valorem
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§
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DEVELOPMENT AND TAX ABATEMENT AGREEMENT WITH BROOKSHIRE GROCERY COMPANY
Brookshire Grocery Company (BGC), a privately held retail (grocery) company, (hereinafter "Developer"), by entering into this Chapter 380 Economic Development Agreement ("Agreement"), pursuant to a program initiated by the CITY OF POTTSBORO, TEXAS, a Texas municipal corporation (hereinafter "City") pursuant to Chapter 380 of the Texas Local Government Code, desires to construct a retail shopping center within the City; and
WHEREAS,
Developer assistance in the City's overall economic development initiatives as well as the construction of improvements on the Property, will result in economic development for the City, including the construction of Developer's retail shopping center ("Center") comprised of 37,000+ square feet on the real property hereinafter described that provides ad valorem tax revenue to the City in the form of business personal property taxes and real property taxes on taxable structures as well as the potential for increased property values on buildings and improvements within and off of the Property; and
WHEREAS,
accelerated land development will provide ancillary business growth including product, services and/or sales and jobs for the City; and
WHEREAS,
Chapter 380 of the Texas Local Government Code provides that Texas municipalities may create programs to promote local economic development; and
WHEREAS,
City wishes provide incentives to Developer to assist in the economic development of the Property; and
WHEREAS,
City has concluded and hereby finds that this Agreement embodies an eligible "program" and clearly promotes economic development in City and, as such, meets the requisites under Chapter 380 of the Texas Local Government Code and further, is in the best interests of City and Developer; and
WHEREAS,
Developer has requested that City provide financial accommodations through the payment of incentive payments for Eligible Projects (as hereinafter defined) developed on the Property which payments will be funded from municipal general funds derived from the increased property taxes paid; and
WHEREAS,
all such financial accommodations from City to Developer are referred to in this Agreement as Developer Incentive Compensation ("DIC"); and
WHEREAS,
Developer understands and agrees that: (a) in agreeing to future payments of DIC, City is relying upon Developer's representations, warranties and agreements, as set forth and provided for in this Agreement; and (b) the Developer shall be and shall remain subject to the terms and conditions of this Agreement.
WHEREAS,
for and in consideration of the above recitals and TEN DOLLARS AND NOll 00 ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Developer agree as follows:
NOW, THEREFORE,
1.
DEFINITIONS.
The following words shall have the following meanings when
used in this Agreement. Eligible Property Value. The words "Eligible Property Value" shall mean a. (i) the amount of ad valorem real property taxes paid by Developer on the Property for any tax year in which DIC is to be paid under this Agreement minus the amount of ad valorem taxes paid on the Property for the tax year prior to the construction of the Eligible Project; and, (ii) the amount of ad valorem business personal property taxes located on the Property for a particular tax year, the value of such business personal property on the tax rolls of the Grayson Appraisal District as of such tax year. b. Affiliate. The word "Affiliate" means (i) all persons, corporations or other entities, if any, controlled by Developer; (ii) all persons, corporations or other entities, if any, which control Developer ("Parent"); and (iii) all persons, corporations, or other entities controlled by a Parent. As used in this definition of Affiliate, control means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities or partnership interests, by contract, or otherwise. c. Agreement. The word "Agreement" means this Chapter 380 Economic Development Agreement, together with all exhibits and schedules attached to this Agreement from time to time, if any. d. City. The word "City" means the City of Pottsboro, Texas. For purposes of this Agreement, City's address is 528 Hwy 120E, Pottsboro, Texas 7 5076. e. Intentionally deleted. f. Developer. The word "Developer" means Brookshire Grocery Company (BGC), a privately held retail (grocery) company whose address is 1600 W. South West Loop 323, Tyler, Texas 75701. g. Developer Incentive Compensation ("DIC"). The words "Developer Incentive Compensation" mean periodic payments to Developer based on the actual ad valorem
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