Res 2015-093/Chapter 380 Economic Development Incentive Agreement with Tanger Properties Limited Partnership that provides incentives over ten years in an amount not to exceed $2,500,000.00 in the form of annual refunds of a portion of new property and s

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and retail activity from within the Real Property Improvements, including the retail activity of the retailer operating as "H &M," completed after the Effective Date in excess of the Base Sales Tax Value. Section 2.03. "Base Tax Year Value" means the ad valorem tax value of the Real Property Improvements on the Site, as established by the Hays County Appraisal District for calendar year 2014. Section 2.04. "Base Sales Tax Value" means the Sales Tax Revenue for calendar year 2014. Section 2.05. "Grant Payments" means the City's payments to Tanger once per calendar year during the Term of an amount equal to 75 percent of Additional Property Taxes and 75 percent of Additional Sales Taxes generated from within the Site during the full calendar year immediately preceding the year in which the payment is made. Section 2.06. "Site" means the real property within the city limits of the City of San Marcos, Texas owned by Tanger at IH -35 South and Centerpoint Road upon which Tanger Outlets is located. Section 2.07. "Real Property Improvements" means such improvements to real property on the Site, other than personal property, subject to ad valorem tax assessment. Section 2.08. "Sales Tax Revenue" means the City's share of local sales and use tax revenue generated from business and retail activity on the Site and paid to the City by the Texas Comptroller of Public Accounts. Section 2.09. The "Terns" of this Agreement shall commence on the Effective Date and continue until December 31, 2024 (unless terminated sooner, as provided in this Agreement), except that Tanger's obligation to submit in 2015 a Compliance Certificate for the year 2024 and the City's obligation, if any, to complete the Grant Payments due under this Agreement for the year 2024 shall continue until satisfied, subject to the limitations of this Agreement. ARTICLE 3. OBLIGATIONS OF TANGER Section 3.01. Site Redevelopment. Tanger shall redevelop the Site in substantial accordance with the proposal in Exhibit "A," attached hereto and made a part hereof. In addition to creating new retail space, such as the space for H &M, Tanger will incur expenses to improve Tanger Outlets for the items and at the estimated costs shown in Exhibit "B." Section 3.02. Reinvestment of Grant Payment Funds. During the Term, Tanger shall reinvest funds directly for the benefit of Tanger Outlets, in an amount not less than the amount of Grant Payments paid to Tanger by the City. Funds expended by Tanger after the Effective date, but before receipt of the first Grant Payment shall be credited toward Tanger's obligation under this paragraph. Tanger shall, with submission of its annual Compliance Certificate (defined below), submit financial records satisfactory to the City's City Manager verifying the iq