R-1435-6-96RESOLUTION NO. 1435-6-96R
A RESOLUTION OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS,
GRANTING AN EXTENSION OF TIME TO PHOTRONICS-TOPPAN TEXAS,
INC., PURSUANT TO SECTIONS THREE (3) AND SIX (6) OF THE AD
VALOREM TAX ABATEMENT AGREEMENT, DATED AUGUST 10, 1994,
AND AUTHORIZING AN AMENDMENT TO THE AGREEMENT REVISING
THE YEARS TO WHICH THE AGREEMENT IS APPLICABLE.
I
WHEREAS, Photronics-Toppan Texas, Inc. ("Photronics") and the City of Allen ("Allen")
executed an Ad Valorem Tax Abatement Agreement on August 10, 1994 (the "Agreement");
i
WHEREAS, Photronics has diligently pursued the construction of the Improvements
contemplated bI y the Agreement;
WHEREAS, Photronics has been prevented from timely completion of the Improvements
by circumstances beyond Photronic's reasonable control including but limited to unanticipated soil
conditions and vibration from U.S. Highway 75 and the railroad which have caused Photronics to
substantially revise its plans and specifications for the improvements;
WHEREAS, the Agreement requires Photronics to construct a commercial facility of
approximately 40,000 square feet;
WHEREAS, Photronics will complete a facility in excess of 60,000 square feet;
WHEREAS, it is anticipated upon completion of the Improvements, that the Improvements
will have a value of approximately forty million dollars ($40,000,000) which is double the value
required by the Agreement;
WHEREAS, Photronics has requested an extension of time to substantially complete the
Improvements from December 31, 1995 to December 31, 1996;
WHEREAS, the Allen City Council finds that Photronics has been prevented from timely
completion of the Improvements by one or more events of "force majeure" as defined in the
Agreement; and
WHEREAS the Allen City Council finds that it is in the best interest of the City and its
economic development goals and policies to amend the Agreement so the years to which the
Agreement is applicable are adjusted.
Photronic's Resolution - Page 1
RESOLUTION NO. 1435-6-96(R)
NOW THEREFORE be it resolved by the Allen City Council as follows:
SECTION 1. EXTENSION OF TIME.
Photronics' request for an extension of time to substantially complete the Improvements
identified in the Agreement is granted from December 31, 1995 to December 31, 1996 for Sections
3 and 6 of the Agreement.
SECTION 2. AMENDMENT.
The Allen City Council authorizes and approves the following amendments to the
Agreement:
a. A change in the date in Section 5 of the Agreement from December 31, 2005
to December 31, 2006.
b. A change in the date in Section 6 of the Agreement from December 31, 1995
to December 31, 1996; and
C. A revised Exhibit B attached to the Agreement to this Resolution and
included herein for all purposes is approved.
ADOPTED by the Allen City Council on this the 20th day of June, 1996.
APPROVED:
t..�s. I
Kevin L. Lilly, Ma
ATTEST:
CJAyMorWso"n, CMC, City Secretary
Photronic's Resolution - Page 2
rA
EXHIBIT "B"
SCHEDULE OF TAX ABATEMENT ON THE
IMPROVEMENTS AND TANGIBLE PERSONAL
PROPERTY AS IDENTIFIED IN THE AGREEMENT
Ad valorem taxes on real and tangible personal property, to the extent the
aggregate value of such real property and tangible personal property is in excess of the
value of the PROPERTY on the certified tax role of the City of Allen as of January 1, 1994
shall be abated in accordance with the following schedule:
Year
Ad Valorem Tax
Ad Valorem Tax To Be
Abated to Photronics
Paid to the City of Allen
1997
90%
10%
1998
90%
10%
1999
80%
20%
2000
60%
40%
2001
60%
40%
2002
60%
40%
TAX ABATEMENT AGREEMENT
ADDENDUM - PHOTRONICS - Page 5 aedcl6/24/961abte-add.pho
AD VALOREM TAX ABATEMENT AGREEMENT ADDENDUM
This Addendum is entered into by and between the City of Allen, Texas ("ALLEN"),
a Texas home rule municipal corporation of Collin County, Texas and PHOTRONICS-
TOPPAN TEXAS, INC.("PHOTRONICS").
WHEREAS, ALLEN and PHOTRONICS executed an Ad Valorem Tax Abatement
Agreement ("the Agreement") on August 10, 1994;
WHEREAS, PHOTRONICS has requested certain revisions in the Agreement;
WHEREAS, ALLEN finds that the requested revisions are in the best interest of
ALLEN and its economic development goals and policies;
NOW THEREFORE, the parties hereto mutually agree as follows:
SECTION 1.
Section 3 of the Agreement is revised to provide as follows:
"TIME FOR CONSTRUCTION OF IMPROVEMENTS
AND USE THEREOF
113. PHOTRONICS shall commence construction of the IMPROVEMENTS on
the PROPERTY, which IMPROVEMENTS shall be substantially completed on or before
December 31, 1996. The date of substantial completion of the IMPROVEMENTS shall
be defined as the date a Certificate of Occupancy is issued for the IMPROVEMENTS by
ALLEN."
TAX ABATEMENT AGREEMENT
ADDENDUM - PHOTRONICS - Page 1 aedc\6/27/961abte-add.pho
SECTION 2.
Section 5 of the Agreement is revised to provide as follows:
115. PHOTRONICS shall, from within one hundred twenty (120) days from the
date a Certificate of Occupancy is issued until December 31, 2006 operate and maintain
its operations on the PROPERTY or until Allen has received ad valorem taxes from the
PREMISES in an amount equal to all the ad valorem taxes abated herein, whichever
occurs first."
SECTION 3.
Section 6 of the Agreement is revised to provide as follows:
TANGIBLE PERSONAL PROPERTY
116. PHOTRONICS agrees that on or before December 31, 1996 it will install,
move, transfer or otherwise deliver T.P.P. (i.e., equipment, furniture and fixtures) to the
PREMISES, which when combined with the improvements will have a value of at least
Twenty Million Dollars ($20,000,000.00), such value being determined by: (i) the current
book value as determined in accordance with generally accepted accounting principals
("GAAP"); or (ii) the value determined by the Collin County Appraisal District, whichever
is greater. PHOTRONICS represents that the improvements and T.P.P. are essential and
necessary for its operations."
SECTION 4.
Section 7 of the Agreement is revised to provide as follows:
TAX ABATEMENT AGREEMENT
ADDENDUM - PHOTRONICS - Page 2 aedc\6/27/96\abte-add.pho
"GRANT OF TAX ABATEMENT
117. Subject to the terms and conditions of this Agreement, and subject to the
rights of holders of any outstanding bonds of ALLEN, the ad valorem taxes applicable to
(i) the increase in the aggregate value of the PREMISES and the T.P.P. located on the
PROPERTY from the date of this Contract over (ii) the value of the PROPERTY on the
certified tax role of the City of Allen as of January 1, 1994 shall be abated for six (6) tax
years commencing with the tax year 1997 in accordance with the schedule listed on
Exhibit "B" attached hereto and made a part hereof. The tax rates may change from year
to year, however, the amount of tax paid and abated shall be in accordance to that given
year's prevailing tax rate and assessed value. The parties to this Agreement agree that
there are no improvements or T.P.P. located on the PROPERTY as of the date of
execution of this Agreement.
SECTION 5.
a. This Agreement was authorized by Resolution of the Allen City
Council at its council meeting on the 24th day of June, 1996.
b. This Agreement was entered into by PHOTRONICS pursuant to
authority granted to its officers from PHOTRONICS' Board of Directors.
SECTION 6.
Unless revised herein, ALLEN and PHOTRONICS ratify the Agreement in all
respects.
TAX ABATEMENT AGREEMENT
ADDENDUM - PHOTRONICS - Page 3
a edc\6/27/96\a bte-a dd.pho
EXECUTED on the day of , 1996.
ATTEST:
Connie Schofield
CITY OF ALLEN, TEXAS
Kevin L. Lilly, Mayor
EXECUTED on the v2� day of , 1996.
l�
J
TAX ABATEMENT AGREEMENT
ADDENDUM - PHOTRONICS - Page 4
NICS-TOPPAN
NC.
oneta,
'esident of Texas Operations
a e d c\6/27/96 \a bte -add . p h o
EXHIBIT "B"
SCHEDULE OF TAX ABATEMENT ON THE
IMPROVEMENTS AND TANGIBLE PERSONAL
PROPERTY AS IDENTIFIED IN THE AGREEMENT
Ad valorem taxes on real and tangible personal property, to the extent the
aggregate value of such real property and tangible personal property is in excess of the
value of the PROPERTY on the certified tax role of the City of Allen as of January 1, 1994
shall be abated in accordance with the following schedule:
Year
Ad Valorem Tax
Ad Valorem Tax To Be
Abated to Photronics
Paid to the City of Allen
1997
90%
10%
1998
90%
10%
1999
80%
20%
2000
60%
40%
2001
60%
40%
2002
60%
40%
TAX ABATEMENT AGREEMENT
ADDENDUM - PHOTRONICS - Page 5
a edc\6/27/96\a bte-a dd. pho