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R-97-08-14-13O - 8/14/1997ATTEST; LAND, City Secretary K: MPDOG9 \PRSO1.iR'I \P570814O.PPD /knh RESOLUTION NO. R- 97 -08 -14 -130 41 la- O(o- i3 - I O.D WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S., as amended, and as authorized by Resolution No. R- 96- 06- 13 -10D, dated June 13, 1996, the City entered into an amendment to a tax abatement agreement with Tellabs Operations, Inc., regarding property in Reinvestment Zone No. ; and WHEREAS,the City, the Williamson County Commissioners Court, and Tellabs Opeations, Inc., intended for the agreement to include the abatement of personal property taxes; and WHEREAS,the parties desire to amend the agreement to include language evidencing their intentions; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City that certain Amendment No. 2 to the Tax Abatement Agreement with Tellabs Operations, Inc. RESOLVED this 14th day of August, 1997. CHARLES CUI/PE9PER, MAYOR CITY OF ROUND ROCK, TEXAS THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDMENT NO. 2 TO TAX ABATEMENT AGREEMENT WITH TELLABS OPERATIONS, INC. This Amendment No. 2. is entered into this the � - 1 day of A'I'QUS7 1997 to amend that certain amendment authorized by City of Round Rock Resolution No. R -96- 06-13-10D on June 13, 1996, and by order of the Williamson County Commissioners Court on December 10, 1996, which amended that certain previously entered into Tax Abatement Agreement dated August 10, 1995, to abate certain property taxes of Tellabs Operations, Inc., for the Tax Years 1996 - 1999, inclusive. WHEREAS, it was the intention of all parties that said above referenced Tax Abatement Agreement was to include the abatement of personal property taxes; and WHEREAS, the parties desire to include language in said Agreement evidencing their intentions; NOW THEREFORE, the parties hereby do mutually agree to amend said Agreement as follows: 1. That Section 7, "Portion of taxes abated ", is amended to read as follows: 7. Portion of taxes abated. Subject to the terms and conditions of the Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes and personal property taxes assessed against the Premises otherwise owed to the City and County shall be abated. City and County hereby acknowledge that they are not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which the Tax Abatement Agreement was originally executed (i.e. 1995), and in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Tax Year 1996 Tax Year 1997 Tax Year 1998 Tax Year 1999 c: =CT \CIMRCO IMCCWAxraA2cUMITLL.h99 /kah 0% abatement 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1997 2. Section 10, "Events of Default. ", shall be amended to read as follows: 10. Events of default. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem real or personal property taxes owed the City or County to become delinquent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real or personal property taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its performance of (1), (2), or (3) above, then the City or County shall give the Owner written notice of such default and if Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be terminated by the City or County by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: Grace Tyson Accounting Manager 601 Jeffrey Way Round Rock, Texas 78664 As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure period. The City and County shall have all remedies for the collection of the recaptured tax revenue_as provided generally in the Tax Code for the collection of delinquent property taxes. 3. Retroactive application. It is the intentions of the parties that this Amendment No. 2, shall be effective as of the effective date of the original Tax Abatement Agreement, as if this amendment was fully written therein at such time. Witness our hands this day of , 1997. CITY OF ROUND ROCK, TEXAS 2. ATTEST: ATTEST: , County Clerk CHARLES CULPEPPER, MAYOR WILLIAMSON COUNTY COMMISSIONERS COURT 3. ,COUNTY JUDGE TELLABS OPERATIONS, INC. , ITS e DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.0. Consider resolution authorizing the Mayor to execute Amendment No. 2 to the Tax Abatement Agreement with Tellabs.Operations, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 2 with Tellabs Operations, Inc. darifies for the Williamson County Appraisal District our intention to include personal property in this agreement. Mayor Charles Culpepper Mayor Ptotem Earl Palmer Council Members Robert Stluka Rod Morgan Rick Stewart Martha Chavez Remy Joseph City Manager Robert L Bennet; Jr. City Attorney Stephan L Sheets CITY OF ROUND ROCK 221 Fast Main Street Round Rock, Texas 78664 512 -218 -5400 July 16, 1996 Tellabs Operations attn: Delaney Mullan Operations Controller 601 Jeffrey Way Round Rock, TX 78664 re: Amended Tax Abatement Agreement Dear Mr. Mullan: Enclosed are three original documents that require signatures. After these contracts have been signed, return them to me and I will forward them on to Williamson County for Judge Doerfler's signature. A completed original will be returned to you for your records. Please call if you have any questions. erely, Mona Ryan, Pl g Technician Planning and Community Development City of Round Rock, Texas enc: 3 original contracts aun Fax: 512-218-7097 1-800-735-2989 TDD 1- 800-735 -2988 Voice THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDED TAX ABATEMENT AGREEMENT This Amended Tax Abatement Agreement ( "Agreement ") is entered into by and between the City of Round Rock, Texas, a home rule city and municipal corporation of Williamson County, Texas, duly acting herein by and through its Mayor, hereinafter referred to as "City "; Williamson County, duly acting herein by and through the County Judge, hereinafter referred to as "County "; and Tellabs Operations, Inc., a Delaware corporation, duly acting by and through its President or any Vice President, hereinafter referred to as "Owner ". RECITALS WHEREAS, on the 10th day of August, 1995, the City Council of the City of Round Rock, Texas, adopted Ordinance No. G- 95- 08- 10 -12A establishing Reinvestment Zone No. 10, City of Round Rock, Texas for commercial /industrial tax abatement, hereinafter referred to as "Ordinance No. G- 95- 08- 10 -12A ", as authorized by Chapter 312, Tax Code, V.A.T.S. as amended, hereinafter referred to as the "Code "; and WHEREAS, the City has adopted Ordinance No. G- 93- 12- 09 -9G, which Ordinance adopted appropriate guidelines and criteria governing reinvestment zones and tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, the contemplated use of the Premises as hereinafter defined) and Improvements (as hereinafter defined) as well as the terms of this Agreement are consistent with encouraging development in said Reinvestment Zone No. 10 in accordance with the purposes for its creation and are in compliance with Ordinance No. G- 93- 12 -09 -9G and the guidelines and criteria adopted by- the City and all applicable laws; and WHEREAS, the Improvements constitute a major investment within Reinvestment Zone No. 10 that will substantially increase the appraised value of property within the zone and will contribute to the retention or expansion of primary and secondary employment within the City and County; and WHEREAS, the City and County find that there will be no substantial adverse effects on the provision of governmental services or on their tax bases and that the planned use of the Premises will not constitute a hazard to public safety, health, or welfare; and x:\ LAPDOGS \ACIYYMMTEf6N\ttLLA9s \raA1 uo.weo /.is 1 WHEREAS, the parties hereto previously entered into that one certain Tax Abatement Agreement, dated the 10th day of August, 1995; and WHEREAS, the parties wish to amend said agreement to provide that the first year for tax abatement shall be 1997 rather than 1996; NOW THEREFORE, the parties hereto do mutually agree as follows: 1. Property subject to Agreement. The property to be the subject of this Agreement shall be that property included within Reinvestment Zone No. 10 which is more fully described in Exhibit "A" which is made a part hereof and shall be hereinafter referred to as the "Premises." 2. Construction of Improvements. The Owner shall promptly commence construction of its facility as described in Exhibit "B" on the Premises (said facility hereinafter referred to as "Improvements ".) The total construction cost of the Improvements is approximately Two Million and no /100 Dollars ($2,000,000.00), which Improvements are to be substantially complete on or about April 1, 1996; provided that Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the date a Certificate of Occupancy is issued by the City. 3. Completion of Improvements. The Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the completion of the Improvements as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as a manufacturing /office facility. 4. Provision of jobs. The Owner agrees and covenants that it will provide and /or retain at least 402 jobs on the Premises from the completion date of the Improvements throughout the term of this Agreement. 2 The Owner shall provide to the City and County annual manpower reports in the form attached hereto as Exhibit "E" and made a part hereof, within sixty (60) days following the end of each calendar year. Regardless of anything contained herein to the contrary, the failure by Owner to provide the number of jobs set out in the above schedule shall not be considered an event of default as defined in paragraph l0below unless the number of jobs actually provided is less than seventy -five percent (75 %) of the number set out in the schedule. If the actual number of jobs provided at the end of any year is less than the scheduled number but is seventy -five percent (75 %) or more, then the percentage of tax abatement for the following year as provided in paragraph 7 below shall be reduced. The percentage of tax abatement shall be reduced by the same percentage that the actual number of jobs bears to the sdheduled number of jobs. By way of illustration, if on December 31, 1997 Owner has provided ten percent (10 %) fewer jobs than is required, then its abatement shall be reduced by ten percentage points (i.e. the 90% abatement shall be reduced ten percentage points to an 80% abatement.) Failure of the Owner to provide at least seventy -five percent (75 %) of the number of jobs required by this Agreement shall be considered an event of default. 6. Application for tax abatement. The Owner agrees and covenants that the attached application for tax abatement (Exhibit "C") is a part of this Agreement, and Owner further warrants that the information provided in that application is true and correct. If any materially false or misleading information is provided in said application, City or County shall have the discretion to declare this Agreement to be in default and City and /or County shall be entitled to the remedies provided for in paragraph 10. 7. Portion of taxes abated. Subject to the terms and conditions of this Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes from the Premises otherwise owed to the City and County shall be abated. City and County hereby acknowledge that they are not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which this Agreement is executed, in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Tax Year 1997 90% abatement Tax Year 1998 60% abatement Tax Year 1999 30% abatement 3 These abatements shall be for three (3) tax years beginning January 1, 1997. 8. Right of inspection. The Owner further agrees that the City and County, their agents and employees shall have the right to enter upon the Premises at any reasonable time to inspect the Improvements in order to determine whether the construction of the Improvements is in accordance with this Agreement and all applicable Federal, state, and local laws, ordinances, and regulations or valid waiver thereof. After completion of the Improvements, the City and County shall have the continuing right to enter upon and inspect the Premises at any reasonable time to determine whether the Premises are thereafter maintained and operated in accordance with this Agreement and all applicable Federal, state, and local laws, ordinances, and regulations. If the City or County determine that a violation of a Federal, state or local law, ordinance or regulation exists on the Premises, the City or County may, in addition to any other authorized enforcement action, provide to the Owner written notice of such violation. For the purposes of this Agreement, the Owner shall have ten (10) days from the date of the notice to cure or remedy such violation. If the Owner fails or refuses to cure or remedy the violation within the ten (10) day period, the Owner is subject to the forfeiture, at the discretion of the City and /or County, of any right to any tax abatement for a portion of the period or the entire period covered by this Agreement. In addition, the failure or refusal to cure or remedy the aforesaid violation shall be considered a default of this Agreement under paragraph 10. 9. Additional assessed value of the Premises. The Owner agrees and covenants that upon completion of the Improvements, the Premises shall contain additional assessed value of not less than $4,500,000.00. Owner shall provide to the City and County a statement of the value of taxable real property, personal property and equipment within sixty (60) days following completion of the Improvements. The City and /or County shall have the option of conducting an appraisal by an appraiser acceptable to City and /or County to verify the value of said property and equipment. If the value determined is one hundred and five percent (105 %) or more of the value certified by the Owner, then the Owner shall bear the cost of the appraisal; otherwise the cost shall be borne by the City or County requesting such appraisal. The taxable value shall be determined on a uniform and equal basis of assessment by the methods used by the Williamson County Tax Appraisal District. 10. Events of default. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed the City or County to become delinquent and fails to 4 timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its ' performance of (1), (2), or (3) above, then the City or County shall give the Owner written notice of such default and if the Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be terminated by the City or County by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: 12. Authorizations. Delaney Mullan Operations Controller 601 Jeffrey Way Round Rock, Texas 78664 As liquidated damages in the event of default and in accordance with Section 312.205,' Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure period. The City and County shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. 11. Agricultural land. It is understood and agreed by the City, County, and the Owner that if the Premises have been designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code, V.A.T.S., this Agreement shall not be effective and no abatement will be granted until Owner has removed the agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as amended, (roll back taxes) have been paid. 5 a) City. This Agreement was authorized by Resolution of the City Council at its council meeting on the 13th day of June, 1996, authorizing the Mayor to execute the Agreement on behalf of the City. b) Commissioners Court. This Agreement was authorized by Resolution or Order of the Williamson County Commissioners Court at its meeting on the day of , 1996, authorizing the County Judge to execute the Agreement on behalf of the County. c) Tellabs. This Agreement was authorized by Tellabs Operations, Inc. pursuant to authority granted by its Board of Directors on the 26th day of July, 1995, whereby the Vice President was authorized to execute this Agreement on behalf of Tellabs Operations, Inc., a copy of which authorization is attached hereto as Exhibit "D ". 13. Miscellaneous provisions. a) City and County representations. The City and the County each represent and warrant that the Premises does not include any property that is owned by a member of their respective councils or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of, this Agreement. b) Agreement binds successors. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. c) Assignment. This Agreement cannot be assigned by Owner unless written permission is first granted by the City and County, which permission shall not be unreasonably withheld; provided however, Owner may assign its rights under this Agreement to an entity which is wholly owned by Owner. No assignment shall be approved if the assignor or assignee are indebted to the City or County for ad valorem taxes or other obligations. d) Owner acting independently. It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City and County assume no responsibilities or liabilities in connection therewith to third parties. e) Owner's Indemnity. During the term of this Agreement, Owner agrees to indemnify and hold City and County harmless from any and all kinds of claims, losses, damages, injuries, suits, or judgments which may accrue to Owner, City, County, or third parties arising out of Owner's failure to perform this Agreement. f) Venue. This Agreement is performable in Williamson County, Texas, and venue for any suit arising hereunder shall be in Williamson County, Texas. Witness -our hands this 13th day of June, 1996. 6 ATTEST: JOANNE LAND, City Secretary ATTEST: CITY OF ROUND ROCK, TEXAS CHARLES CULPEPPER, Mayor WILLIAMSON COUNTY COMMISSIONERS COURT John Doerfler, County Judge TELLABS OPERATIONS, INC. By: 7 , its EXHIBIT "A" Page 1 of 1 Property Description Lot 2, AmorRon Park II 9a replat of Lot 5, Bradford 21 Limited Business Park, Section One and Lot 6, Bradford 21 Limited Business Park, Section Two) a subdivision located in Round Rock, Williamson County, Texas according to the map or plat of record in Cabinet K, Slide 16, Plat Records Williamson County. 8 Therefore ATTEST: 4 A p) del � E LAND, City Secretary C: \ WPOOCS \RESOLUTI \RS606130 WPD/kg RESOLUTION NO. R- 96- 06- 13 -10D WHEREAS, the City previously entered into a Tax Abatement Agreement with Tellabs Operations, Inc. ( "Tellabs ") pursuant to Resolution No. R - 95 08 10 - 13A, and WHEREAS, Tellabs has requested that the Tax Abatement Agreement be amended to provide that the first year of tax abatement is 1997 rather than 1996, and WHEREAS, the Council is agreeable to such amendment, Now BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Amended Tax Abatement Agreement with Tellabs, a copy of such agreement being attached hereto and incorporated herein for all purposes. RESOLVED this 13th day of June, 1996. � HARLES CUL E KR, Mayor City of Round Rock, Texas THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDED TAX ABATEMENT AGREEMENT This Amended Tax Abatement Agreement ( "Agreement ") is entered into by and between the City of Round Rock, Texas, a home rule city and municipal corporation of Williamson County, Texas, duly acting herein by and through its Mayor, hereinafter referred to as "City "; Williamson County, duly acting herein by and through the County Judge, hereinafter referred to as "County "; and Tellabs Operations, Inc., a Delaware corporation, duly acting by and through its President or any Vice President, hereinafter referred to as "Owner ". RECITALS WHEREAS, on the 10th day of August, 1995, the City Council of the City of Round Rock, Texas, adopted Ordinance No. G- 95- 08- 10 -12A establishing Reinvestment Zone No. 10, City of Round Rock, Texas for commercial /industrial tax abatement, hereinafter referred to as "Ordinance No. G- 95- 08- 10 -12A ", as authorized by Chapter 312, Tax Code, V.A.T.S. as amended, hereinafter referred to as the "Code "; and WHEREAS, the City has adopted Ordinance No. G- 93- 12- 09 -9G, which Ordinance adopted appropriate guidelines and criteria governing reinvestment zones and tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, the contemplated use of the Premises (as hereinafter defined) and Improvements (as hereinafter defined) as well as the terms of this Agreement are consistent with encouraging development in said Reinvestment Zone No. 10 in accordance with the purposes for its creation and are in compliance with Ordinance No. G- 93- 12 -09 -9G and the guidelines and criteria adopted by the City and all applicable laws; and WHEREAS, the Improvements constitute a major investment within Reinvestment Zone No. 10 that will substantially increase the appraised value of property within the zone and will contribute to the retention or expansion of primary and secondary employment within the City and County; and WHEREAS, the City and County find that there will be no substantial adverse effects on the provision of governmental services or on their tax bases and that the planned use of the Premises will not constitute a hazard to public safety, health, or welfare; and C \wP0009 ACITY \ABArn4EN \TELLA 5 \TAA1 uw.xeu /.1. 1 WHEREAS, the parties hereto previously entered into that one certain Tax Abatement Agreement, dated the 10th day of August, 1995; and WHEREAS, the parties wish to amend said agreement to provide that the first year for tax abatement shall be 1997 rather than 1996; NOW THEREFORE, the parties hereto do mutually agree as follows: 1. Property subject to Agreement. The property to be the subject of this Agreement shall be that property included within Reinvestment Zone No. 10 which is more fully described in Exhibit "A" which is made a part hereof and shall be hereinafter referred to as the "Premises." 2. Construction of Improvements. The Owner shall promptly commence construction of its facility as described in Exhibit "B" on the Premises (said facility hereinafter referred to as "Improvements ".) The total construction cost of the Improvements is approximately Two Million and no /100 Dollars ($2,000,000.00), which Improvements are to be substantially complete on or about April 1, 1996; provided that Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the date a Certificate of Occupancy is issued by the City. 3. Completion of Improvements. The Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the completion of the Improvements as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as a manufacturing /office facility. 4. Provision of jobs. The Owner agrees and covenants that it will provide and /or retain at least 402 jobs on the Premises from the completion date of the Improvements throughout the term of this Agreement. 2 The Owner shall provide to the City and County annual manpower reports in the form attached hereto as Exhibit "E" and made a part hereof, within sixty (60) days following the end of each calendar year. Regardless of anything contained herein to the contrary, the failure by Owner to provide the number of jobs set out in the above schedule shall not be considered an event of default as defined in paragraph 10below unless the number of jobs actually provided is less than seventy -five percent (75 %) of the number set out in the schedule. If the actual number of jobs provided at the end of any year is less than the scheduled number but is seventy -five percent (75%) or more, then the percentage of tax abatement for the following year as provided in paragraph 7 below shall be reduced. The percentage of tax abatement shall be reduced by the same percentage that the actual number of jobs bears to the scheduled number of jobs. By way of illustration, if on December 31, 1996 Owner has provided ten percent (10 %) fewer jobs than is required, then its abatement shall be reduced by ten percentage points (i.e. the 90% abatement shall be reduced ten percentage points to an 80% abatement.) Failure of the Owner to provide at least seventy -five percent (75 %) of the number of jobs required by this Agreement shall be considered an event of default. 6. Application for tax abatement. The Owner agrees and covenants that the attached application for tax abatement (Exhibit "C ") is a part of this Agreement, and Owner further warrants that the information provided in that application is true and correct. If any materially false or misleading information is provided in said application, City or County shall have the discretion to declare this Agreement to be in default and City and /or County shall be entitled to the remedies provided for in paragraph 10. 7. Portion of taxes abated. Subject to the terms and conditions of this Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes from the Premises otherwise owed to the City and County shall be abated. City and County hereby acknowledge that they are not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below - stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which the Tax Abatement Agreement was originally executed (i.e., 1995), and in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: 3 Tax Year 1996 Tax Year 1997 Tax Year 1998 Tax Year 1999 4 0% abatement 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1997. 8. Right of inspection. The Owner further agrees that the City and County, their agents and employees shall have the right to enter upon the Premises at any reasonable time to inspect the Improvements in order to determine whether the construction of the Improvements is in accordance with this Agreement and all applicable Federal, state, and local laws, ordinances, and regulations or valid waiver thereof. After completion of the Improvements, the City and County shall have the continuing right to enter upon and inspect the Premises at any reasonable time to determine whether the Premises are thereafter maintained and operated in accordance with this Agreement and all applicable Federal, state, and local laws, ordinances, and regulations. If the City or County determine that a violation of a Federal, state or local law, ordinance or regulation exists on the Premises, the City or County may, in addition to any other authorized enforcement action, provide to the Owner written notice of such violation. For the purposes of this Agreement, the Owner shall have ten (10) days from the date of the notice to cure or remedy such violation. If the Owner fails or refuses to cure or remedy the violation within the ten (10) day period, the Owner is subject to the forfeiture, at the discretion of the City and /or County, of any right to any tax abatement for a portion of the period or the entire period covered by this Agreement. In addition, the failure or refusal to cure or remedy the aforesaid violation shall be considered a default of this Agreement under paragraph 10. 9. Additional assessed value of the Premises. The Owner agrees and covenants that upon completion of the Improvements, the Premises shall contain additional assessed value of not less than $4,500,000.00. Owner shall provide to the City and County a statement of the value of taxable real property, personal property and equipment within sixty (60) days following completion of the Improvements. The City and /or County shall have the option of conducting an appraisal by an appraiser acceptable to City and /or County to verify the value of said property and equipment. If the value determined is one hundred and five percent (105 %) or more of the value certified by the Owner, then the Owner shall bear the cost of the appraisal; otherwise the cost shall be borne by the City or County requesting such appraisal. The taxable value shall be determined on a uniform and equal basis of assessment by the methods used by the Williamson County Tax Appraisal District. 10. Events of default. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed the City or County to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its performance of (1), (2), or (3) above, then the City or County shall give the Owner written notice of such default and if the Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be terminated by the City or County by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure period. The City and County shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. 11. Agricultural land. It is understood and agreed by the City, County, and the Owner that if the Premises have been designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code, V.A.T.S., this Agreement shall not be effective and no abatement will be granted until Owner has removed the agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as amended, (roll back taxes) have been paid. 12. Authorizations. Delaney Mullan Operations Controller 601 Jeffrey Way Round Rock, Texas 78664 a) City. This Agreement was authorized by Resolution of the City Council at its council meeting on the 13th day of June, 1996, authorizing the Mayor to execute the Agreement on behalf of the City. b) Commissioners Court. This Agreement was authorized by Resolution or Order of the Williamson County Commissioners Court 5 at its meeting on the 10 day of ,Du.- , 1996, authorizing the County Judge to execute the Agreement on behalf of the County. c) Tellabs. This Agreement was authorized by Tellabs Operations, Inc. pursuant to authority granted by its Board of Directors on the 26th day of July, 1995, whereby the Vice President was authorized to execute this Agreement on behalf of Tellabs Operations, Inc., a copy of which authorization is attached hereto as Exhibit "D ". 13. Miscellaneous provisions. a) City and County representations. The City and the County each represent and warrant that the Premises does not include any property that is owned by a member of their respective councils or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of, this Agreement. b) Agreement binds successors. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. c) Assignment. This Agreement cannot be assigned by Owner unless written permission is first granted by the City and County, which permission shall not be unreasonably withheld; provided however, Owner may assign its rights under this Agreement to an entity which is wholly owned by Owner. No assignment shall be approved if the assignor or assignee are indebted to the City or County for ad valorem taxes or other obligations. d) Owner acting independently. It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City and County assume no responsibilities or liabilities in connection therewith to third parties. e) Owner's Indemnity. During the term of this Agreement, Owner agrees to indemnify and hold City and County harmless from any and all kinds of claims, losses, damages, injuries, suits, or judgments which may accrue to Owner, City, County, or third parties arising out of Owner's failure to perform this Agreement. f) Venue. This Agreement is performable in Williamson County, Texas, and venue for any suit arising hereunder shall be in Williamson County, Texas. 6 Witness our hands this 13th day of June, 1996. CITY OF ROUND ROCK, TEXAS CHARLES CUL'P.— ER, Mayor EST: J NNE LAND, City Secretary ATTEST: abAe CAROL Sliv,,) , SECaorAgy WILLIAMSON COUNTY COMMISSIONERS COURT TELLABS By: 7 17 - 4(. Doerfler, County Judge ERATIONS, INC. , its ViccAes■du+,i - Rviagt EXHIBIT "A" Page 1 of 1 Property Description Lot 2, AmorRon Park II 9a replat of Lot 5, Bradford 21 Limited Business Park, Section One and Lot 6, Bradford 21 Limited Business Park, Section Two) a subdivision located in Round Rock, Williamson County, Texas according to the map or plat of record in Cabinet K, Slide 16, Plat Records Williamson County. 8 EXHIBIT "A" Page 1 of 1 Property Description Lot 2, AmorRon Park II 9a replat of Lot 5, Bradford 21 Limited Business Park, Section One and Lot 6, Bradford 21 Limited Business Park, Section Two) a subdivision located in Round Rock, Williamson County,'Texas according to the map or plat of record in Cabinet K, Slide 16, Plat Records Williamson County. C: \WPDDCS\ CITY \ABATEMEN \TELLABS \TAA2.WPD /s:s 8 Lot 2, AmorRon Park II 9a replat of Lot 5, Bradford 21 Limited Business Park, Section One and Lot 6, Bradford 21 Limited Business Park, Section Two) a subdivision located in Round Rock, Williamson County, Texas according to the map or plat of record in Cabinet K, Slide 16, Plat Records Williamson County. EXHIBIT "A" Page 1 of 1 Property Description EXHIBIT "B" Description of Improvements To Be Constructed A 40,000 square foot addition and related waste water detention pool. Addition to be constructed using tilt wall method and used for the purpose for manufacturing telecommunication products. EXHIBIT "C" APPLICATION FOR TAX ABATEMENT This is to certify that the statements contained herein are true and correct. The signers hereof are authorized to make these statements on behalf of the applicant. The filing of this document acknowledges familiarity and conformance with guidelines and criteria for granting tax abatement. This application will become part of the agreement which shall be enforceable and binding on the applicant. False representations will be grounds for terminating the agreement. Any such false statements shall be considered a default which renders the agreement void. This application should be filed with the City Manager of the City of Round Rock, 221 East Main Street, Round Rock, Texas 78664. I. APPLICANT INFORMATION.: DATE: 7 -13 -95 Company Name: Tellabs Operations, Inc. Address: 601 Jeffrey Way Round Rock, Texas 78664 II. PROJECT INFORMATION• A. Description of area to be designated as reinvestment zone: (attach map) AmorRon Park II, Lot 2 B. Description of eligible improvements (real property) to be constructed: A 40,000 square foot tilt wall expansion attached to the current structure, constructed on Lot 2 of AmorRon Park II. C. Current assessed value: As of the 1994 Tax Statement appraised value of land is $1,127,190. Improvements appraised at $2,522,200. D. Estimated value of eligible improvements: $2,000,000 or $50.00 per square foot. (Value of real property) $2,500,000 (Value of personal property) bcabmt.3.14.95 Page 1 • txabmt.3.14.95 E. Description of ineligible (taxable) property to be included in project: Lot 2 of AmorRon Park II and equipment listed in Exhibit "C" Schedule 1. F. Estimated value of ineligible property:' Lot 2 of AmorRon Park II: $1,127,190 See Exhibit "C" Schedule 1 for detail equipment Book Value. Total value of $2,173,164.83 G. Estimated value of site as of January 1 preceding abatement agreement: Land: $1.127.190 Improvements: $2.522.200 Personal Property: $5.557.880 H. This project is: ( ) A New Plant (X) An Expansion ( )A Modernization If Modemization: Estimated economic life of existing plant: N.th, years Added economic life from modernization: N/A years I. Tax abatement requested: 90% of eligible property for year 1. 60% of eligible property for year 2. 30% of eligible property for year 3. III. F.CDNOMIC INFORMATION• A. Construction Estimates: Commencement Date: August 14, 1995 Completion Date: April 1, 1996 # of Construction jobs 15 Per Day B. Estimated number of jobs to be created: 1 December 31, 1996 2. December 31, 1997 3. December 31, 1998 Page 2 C. Other estimated taxes generated by project: Sales Tax: 0 Other (Identify): 0 D. The proposed reinvestment zone is located in: City: Round Rock County: Williamson School District: Round Rock Independent School District (RRISD) Other Taxing Water Control & Improvement District #3 of Williamson, jurisdictn: Milam and Lee Counties Signat tQuthorized Company Official .. Delaney Mullan Operations Controller Printed Name and Title of Authorized Company Official Company Representative to be contacted: Name: Delaney Mullan Address: 601 Jeffrey Way Round Rock Texas 78664 Telephone No: (5121 21 8 - 571 0 Title: Operations Controller Upon receipt of the application, the City of Round Rock may also require copies of the latest annual stockholders report, audited financial statements, bank references, and any other information required to evaluate the application. Txabmt.3.14.95 Page 3 STATE OF TEXAS COUNTY OF WILLIAMSON VERIFICATION FO ; 1 , the undersigned Notary Public, on this day personally appeared Operations ,Eyngy -n1 i Pr (t itle) of Tel labs Operations, Inc. (Owner), being : • e duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; that he has read the above and foregoing Application For Tax Abatement; and that every statement contained in the Application is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the g day of)\t , , 199. to certify which witness my hand and official seal. Q Notary Public, State of Teas` Printed Name: ,11.../, csov 3 (7u, d'>r. My Commission Expires: L.5414/97 txabmt.3.14.95 Page 4 (2) 70' Roller Conveyors (16) Flow Conveyor Racks (cost included w/ #1) Pallet Jacks Work Tables (3) Desks SUBTOTAL EXHIBIT "C" Schedule 1 Tellabs Operations, Inc. Location: Texas Ineligible Property for Tax Abatement SMT FINISHED GOODS BOOK VALUE @ 6/30/95 Board Prep Table $4,573.38 Board Transfer Conveyors $108,208.00 Screen Printer $225,314.00 Fuji GL -V Adhesive Dispensing Machine $137,690.00 Fuji CP6 Placement machine $583,790.00 Fuji 1P3 Placement machine $576752.00 BTU Reflow Oven $137,619.00 Cam/Alot Liquid Dispensing Machine $37,244.00 Eyelet Machine (Rivet) $7,318.00 Rework Area - Table, Sierra Rework Machine $48,089.00 Cabinets $6,140.00 Hand Insertion Slide Lines $4,742.00 Electrovert Wave Solder Machine $213,606.00 Touchup Slide Lines $4,742.00 Test Sets $26,317.68 Stencil Cleaner $41,580.00 8 Desks' $0.00 SUBTOTAL $2,163,725.06 $7,420.37 $2,019.40 $0.00 $0.00 $9,439.77 GRAND TOTAL $2,173,164.83 I, Carol Coghlan Gavin, hereby certify that I am the duly elected Secretary and keeper of the records of Tellabs Operations, Inc. ( "Corporation ") a Delaware corporation and that the following resolution was duly adopted by the Board of Directors of the Corporation on July 26, 1995, and remains in full force and effect. RESOLVED, that the President and any Vice President of the Corporation be and hereby are authorized and empowered to enter into a contract for tax abatement with the City of Round Rock, Texas, in the name and on behalf of the Corporation, upon such terms and conditions as may be agreed upon between such officers and said City of Round Rock, Texas. I also certify that the following individuals are duly elected officers of the Corporation as indicated below: Richard T. Taylor, Vice President and General Manager Carol Coghlan Gavin, Vice President, General Counsel and Secretary Dated: July 27, 1995 Exhibit D Secretary's Certificate 7 i:J-Jr c Signature lla (,tEl{I mow' Si atu By: cZ`utt Carol Cog Gavin EXHIBIT "E" MANPOWER REPORT I, of (Owner) do certify that on December 31, 19_ there were full time employees at STATE OF TEXAS COUNTY OF WILLIAMSON 5 Signature: Printed Name: Title: Date: BEFORE ME, the undersigned Notary Public, on this day personally appeared of (Owner), being by me duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; and that every statement contained in the Manpower Report is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the day of , 19 , to certify which witness my hand and official seal. Notary Public, State of Texas Printed Name: My Commission Expires: Date: June 11, 1996 Subject: City Council Meeting June 13, 1996 Item: 10.D. Consider a resolution authorizing the Mayor to execute an amended tax abatement agreement with Tellabs, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval This agreement is being amended due to additional assessed value. This new assessed value exceeds the original estimates by $2.1M. Specifically, building improvements were estimated at $2M, but actual expenditures were $2.6. Total equipment was estimated at $2.5M, but now Tellabs expects to spend $4M. WHEREAS,in accordance with Chapter 312, Tax Code, V.A.T.S., as amended, and as authorized by Resolution No. R- 96- 06- 13 -10D, dated June 13, 1996, the City entered into an amendment to a tax abatement agreement with Tellabs Operations, Inc., regarding property in Reinvestment Zone No. ; and WHEREAS,the City, the Williamson County Commissioners Court, and Tellabs Opeations, Inc., intended for the agreement to include the abatement of personal property taxes; and WHEREAS,the parties desire to amend the agreement to include language evidencing their intentions; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City that certain Amendment No. 2 to the Tax Abatement Agreement with Tellabs Operations, Inc. RESOLVED this 14th day of August, 1997. ATTEST: LAND, City Secretary K: \MPDOCS WSOLIIfI\R5 /08140.100 /teh RESOLUTION NO. R- 97 -08 -14 -130 CHARLES C PER, MAYOR CITY OF ROUND ROCK, TEXAS THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDMENT NO. 2 TO TAX ABATEMENT AGREEMENT WITH TELLABS OPERATIONS, INC / This Amendment No. 2. is entered into this the �`f day of ( 1997 to amend that certain amendment authorized by City of Round Rock Resolut n No. R -96- 06-13-10D on June 13, 1996, and by order of the Williamson County Commissioners Court on December 10, 1996, which amended that certain previously entered into Tax Abatement Agreement dated August 10, 1995, to abate certain property taxes of Tellabs Operations, Inc., for the Tax Years 1996 - 1999, inclusive. WHEREAS, it was the intention of all parties that said above referenced Tax Abatement Agreement was to include the abatement of personal property taxes; and WHEREAS, the parties desire to include language in said Agreement evidencing their intentions; NOW THEREFORE, the parties hereby do mutually agree to amend said Agreement as follows: 1. That Section 7 "Portion of taxes abated ", is amended to read as follows: 7. Portion of taxes abated. Subject to the terms and conditions of the Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes and personal property taxes assessed against the Premises otherwise owed to the City and County shall be abated. City and County hereby acknowledge that they are not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which the Tax Abatement Agreement was originally executed (i.e. 1995), and in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Tax Year 1996 Tax Year 1997 Tax Year 1998 Tax Year 1999 These abatements shall be for three (3) tax years beginning January 1, 1997. C: \TflT\CxmPWNDP-0C\TAXABASE AMTELL.ABS /ksh 0% abatement 90% abatement 60% abatement 30% abatement 2. Section 10 "Events of Default. ", shall be amended to read as follows: 10. Events of default. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance . with this Agreement or (2) Owner allows its ad valorem real or personal property taxes owed the City or County to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem real or personal property taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its performance of (1), (2), or (3) above, then the City or County shall give the Owner written notice of such default and if Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be terminated by the City or County by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: Grace Tyson Accounting Manager 601 Jeffrey Way Round Rock, Texas 78664 As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure period. The City and County shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. Retroactive application. it is the intentions of the parties that this Amendment No. 2, shall be effective as of the effective date of the original Tax Abatement Agreement, as if this amendment was fully written therein at such time. 2. Witness our hands this 1 (J day of ATTEST: ATTEST: 3. CITY OF ROUND ROCK, TEXAS CHARLES CULPEPPER, MAYOR WILLIAMSON COUNTY COMMISSIONERS COURT TELLABS OPERATIONS, INC. ,ITS Director of Treasury Services DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.0. Consider resolution authorizing the Mayor to execute Amendment No. 2 to the Tax Abatement Agreement with Tellabs Operations, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 2 with Tellabs Operations, Inc. clarifies for the Williamson County Appraisal District our intention to include personal property in this agreement. WHEREAS,in accordance with Chapter 312, Tax Code, V.A.T.S., as amended, and as authorized by Resolution No. R- 96- 06- 13 -1OD, dated June 13, 1996, the City entered into an amendment to a tax abatement agreement with Tellabs Operations, Inc., regarding property in Reinvestment Zone No. ; and WHEREAS,the City, the Williamson County Commissioners Court, and Tellabs Opeations, Inc., intended for the agreement to include the abatement of personal property taxes; and WHEREAS,the parties desire to amend the agreement to include language evidencing their intentions; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City that certain Amendment No. 2 to the Tax Abatement Agreement with Tellabs Operations, Inc. RESOLVED this 14th day of August, 1997. ATTEST: K: \weDOCS \R3o1VTI \ASumo.NPD /kah RESOLUTION NO. R- 97 -08 -14 -130 E LAND, City Secretary CHARLES CU PER, MAYOR CITY OF ROUND ROCK, TEXAS THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDMENT NO. 2 TO TAX ABATEMENT AGREEMENT WITH TELLABS OPERATIONS, INC.. This Amendment No. 2. is entered into this the id day of 1997 to amend that certain amendment authorized by City of Round Rock Resolut n No. R -96- 06-13-10D on June 13, 1996, and by order of the Williamson County Commissioners Court on December 10, 1996, which amended that certain previously entered into Tax Abatement Agreement dated August 10, 1995, to abate certain property taxes of Tellabs Operations, Inc., for the Tax Years 1996 - 1999, inclusive. WHEREAS, it was the intention of all parties that said above referenced Tax Abatement Agreement was to include the abatement of personal property taxes; and WHEREAS, the parties desire to include language in said Agreement evidencing their intentions; NOW THEREFORE, the parties hereby do mutually agree to amend said Agreement as follows: 1. That Section 7, "Portion of taxes abated ", is amended to read as follows: 7. Portion of taxes abated. Subject to the terms and conditions of the Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes and personal property taxes assessed against the Premises otherwise owed to the City and County shall be abated. City and County hereby acknowledge that they are not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which the Tax Abatement Agreement was originally executed (i.e. 1995), and in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Tax Year 1996 Tax Year 1997 Tax Year 1998 Tax Year 1999 C: \TEXT \CITY\RWNDRCC \TAXABATEV ,1TELL.ABS /kah 0% abatement 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1997. 2. Section 10, "Events of Default. ", shall be amended to read as follows: 10. Events of default. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem real or personal property taxes owed the City or County to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem real or personal property taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its performance of (1), (2), or (3) above, then the City or County shall give the Owner written notice of such default and if Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be terminated by the City or County by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: Grace Tyson Accounting Manager 601 Jeffrey Way Round Rock, Texas 78664 As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure period. The City and County shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. 3. Retroactive application. It is the intentions of the parties that this Amendment No. 2, shall be effective as of the effective date of the original Tax Abatement Agreement, as if this amendment was fully written therein at such time. 2. Witness our hands this / day of ATTEST: ATTEST: 3. , 1997. CITY OF ROUND ROCK, TEXAS CHARLES U P PPER, MAYOR WILLIAMSON COUNTY COMMISSIONERS COURT TELLABS OPERATIONS, INC. ITS Director of Treasury Services DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.0. Consider resolution authorizing the Mayor to execute Amendment No. 2 to the Tax Abatement Agreement with Tellabs Operations, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 2 with Tellabs Operations, Inc. clarifies for the Williamson County Appraisal District our intention to include personal property in this agreement.