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R-2017-4683 - 8/10/2017 RESOLUTION NO. R-2017-4683 WHEREAS, EastGroup Properties, L.P., a Delaware limited partnership ("EGP") has expressed to the City of Round Rock ("City") its desire to construct two buildings for industrial use in the City which will provide jobs and additional tax base to the City, and WHEREAS, §380.001 Local Government Code provides that a municipality may establish an economic development program ("Program") to promote local economic development and to stimulate business and commercial activity in the municipality, and WHEREAS, the City Council has determined that the Program described in Exhibit "A" will meet the goals set forth in said §380.001 and will be of mutual benefit to both parties, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the City offers to EGP a §380.001 Program in exchange for EGP constructing two industrial use buildings in the City, and BE IT FURTHER RESOLVED That the offer of the Program shall be as generally outlined in Exhibit "A" attached hereto and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. 0112.1704;00383048 RESOLVED this 10th day of August, 2017. CRAJun�GOR , Mayor City k, Texas ATTEST: SARA L. WHITE, City Clerk 2 EXHIBIT A ECONOMIC DEVELOPMENT PROGRAM The terms of the §380.001 Economic Development Program to be offered to EastGroup Properties, L.P., ("EGP") in exchange for EGP's constructing two new industrial use buildings in the City of Round Rock are as generally outlined below: 1. EGP's obligations: 1.1. EGP agrees to construct two new buildings in the City that are suitable to lease industrial zoned purposes. 2. City's obligations: 2.1 City shall, subject to EGP's satisfaction of its obligation to construct two new buildings in the City make Economic Incentive Payments to EGP as follows: City subject to EGP's satisfaction of its obligations to construct two new buildings, make EIPs to EGP as set forth herein. The EIP's shall be made in annual payments on or before March 1 of each year and shall be a percentage of Property Tax paid for the previous year. "Year 1" shall be the calendar year following the issuance of a Certificate of Occupancy for one of the buildings that make up the Facility. EIP's shall be calculated as paid as follows: Year Percentage of Property Tax Paid by March 1 of: Year 1 75% Year 2 Year 2 75% Year 3 Year 3 50% Year 4 Year 4 50% Year 5 Year 5 50% Year 6 3. The terms and provisions of this Program will be set out in more detail in the Economic Development Program Agreement of even date herewith. 3