Res 2022-200R/approving a Chapter 380 Economic Development Incentive Agreement with Majestic Realty Co. providing incentives in the form of refunds of 50 percent of additional real property taxes for up to three years

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conditions of this Agreement is consistent with the public purposes of Chapter 380 and the economic development objectives of the City. Section 1.05. For the reasons stated in these Recitals and in consideration of the mutual benefits to and promises of the Parties set forth below,the Parties want to enter into this Agreement and agree to the terms and conditions set forth in this Agreement. ARTICLE II DEFINITIONS Section 2.01. "Base Tax Year Value" means the ad valorem tax value of each of three tracts comprising the Land (as defined below) as established by the Hays County Tax Assessor- Collector's Office for calendar year 2022. The Land is not yet platted but will be subdivided into multiple lots as each phase of development on the Land occurs. Because such lots are not yet created, they will not have an independent ad valorem tax value for 2022. For purposes of this Agreement, therefore, the Base Tax Year Value of each new lot will proportionate to the square footage of each lot relative to the square footage of the parent tract within which it is situated. Section 2.02. `Building Improvements" means an estimated 800,000 square feet of new "spec"buildings located on the Land(defined below)to be completed in phases, each suitable for lease to and finish out by one or more tenants for the tenant's specific commercial, office, warehouse, light industrial or other uses as allowed under applicable zoning regulations and ordinances. Section 2.03. "Grant Payments" means up to three annual incentive payments by the City to the Developer for each completed Building Improvements constructed on a platted lot on the Land during the Term. Each Grant Payment shall be an amount equal to 50 percent of Real Property Taxes paid by Developer in with Building Improvements on a platted lot and received by the City in the manner provided in this Agreement below. 2