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Section E. Approval of Tax Abatement Incentive by the City Council. <br />1. If the City Council determines that it is in the best interest of the City of San <br />Marcos to provide incentives to a particular applicant, it may approve the <br />terms and conditions of a tax abatement agreement with the applicant. <br />2. Assignment. Any tax abatement agreement must include at least the following <br />items: <br />a. The terms of the abatement to be provided and its duration. <br />b. A legal description of the property to be designated as a reinvestment <br />zone subject to the agreement. <br />c. Detailed information regarding the type, number, location and cost of <br />planned improvements. <br />d. A plan which provides access to and inspection of the property and <br />proposed improvements by City inspectors and officials to ensure that <br />the improvements are made according to the requirements and <br />conditions of the agreement. <br />e. A provision limiting the uses of the property consistent with the <br />general purpose of encouraging development or redevelopment of the <br />zone during the period that the tax abatement is in effect. <br />f. A method to provide for the recovery of property tax revenues which <br />are lost as a result of the agreement if the applicant fails to perform its <br />obligations under the agreement. <br />3. Assignment. Tax abatement agreements may be assigned to a new owner or <br />lessee of the improvements with the written consent of the City. Any <br />assignment shall provide that the assignee shall irrevocably and <br />unconditionally assume all duties and obligations of the assignor as set out in <br />the agreement. No assignment shall be approved if the assignor or assignee <br />are indebted to the City for ad valorem taxes or other obligations. <br />4. Amendments to the guidelines. The guidelines and criteria adopted herein <br />shall be effective from the date they are adopted by the Council and shall <br />remain in effect for two years unless otherwise repealed by a three- fourths <br />vote of the City Council. <br />