O-2006-2955 - Laserfiche WebLink

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B. In the event the County declares the Lessor and/or Lessee to be in default of this Agreement, this Agreement shall terminate unless such default is cured in accordance with Subsection C below. If this Agreement is terminated, the County, and the other political subdivisions that are parties to this Agreement, shall be entitled to recapture all property taxes which have been abated as a result of this Agreement. Additionally, the Lessor and/or Lessee each agree to pay the County, and the other political subdivisions who are parties to this Agreement, interest at the rate of six percent (6%) per annum on any amount of previously abated taxes that are due to be recaptured under Section VII of this Agreement from the effective date of this Agreement. Interest for each year's abated taxes to be recaptured pursuant to Section VII of this Agreement shall be calculated beginning from the effective date of this Agreement. Interest shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the first day but excluding the last day) occurring in the period for which such interest is payable, unless such calculation would result in an usurious rate, in which case interest shall be calculated on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed (including the first day but excluding the last day). C. The Lessor and/or Lessee are each responsible for notifying the County of any default of this Agreement within ten (10) days of the default and must cure such default within sixty (60) days of the default ("Cure Period"). If the County determines that the Lessor or Lessee have failed to notify the County of any default of this Agreement as provided in this paragraph, the Agreement may be terminated immediately by the County and all taxes previously abated by virtue of this Agreement may be recaptured from the Lessor and/or Lessee. In such event, such taxes must be paid to the County, and other political subdivisions that are parties to this Agreement, within sixty (60) days from the date of termination. If the County does not receive full payment within said sixty (60) days of termination of this Agreement, a penalty may be added, pursuant to section 312.205 (b)(6) of the Texas Tax Code, equal to fifteen percent (15%) of the total amount of taxes abated under this Agreement. D. In the event the Lessor and/or Lessee allow the ad valorem taxes owed the County to become delinquent or fails to timely and properly follow the legal procedures for its protest and/or contest, then this Agreement may be terminated and all taxes previously abated by virtue of this Agreement will be recaptured from the Lessor and/or Lessee. In such event, such taxes must be paid to the County, and other political subdivisions that are parties to this Agreement, within sixty (60) days from the date of termination. E. In the event the facility herein is completed and the Lessee begins operation, but subsequently discontinues operation for any reason, for a period of 180 days during the abatement period, or one year in the event of a natural disaster, then this Agreement will terminate. In the event of termination pursuant to the provisions of this paragraph, the abatement of taxes under this Agreement for the calendar year during which the facility no longer is in operation will terminate and there shall be full recapture with penalties and interest as set out herein. Further, the Lessor and/or Lessee shall notify the County within ten (10) days of any discontinuation, stating the reason for the