O-2006-2955 - Laserfiche WebLink

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VII. EVENT OF DEFAULT A. During the period covered by this Agreement, the City may declare a default hereunder upon the occurrence of any one or more of the following circumstances or events: 1. Failure by the Lessor and Lessee to commence construction of the Project Improvements specified in the Investment Budget of Exhibit B and Section IV of this Agreement by January 1, 2007, or 2. If the Lessor and Lessee fails, refuses, or neglects to comply with any of the terns of this Agreement; or 3. Failure by the Lessor and Lessee to comply with TEX. TAX CODE ANN. §22.01, as amended, requiring an annual rendition of all personal property with HCAD; or 4. If any representation made by the Lessor and Lessee in the Application or in this Agreement is false or misleading in any material respect. B. In the event the City declares the Lessor and 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 City, 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 Lessee agrees to pay the City, 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 a 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 Lessee is responsible for notifying the City 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 City determines that the Lessor and Lessee has failed to notify the City of any default of this Agreement as provided in this paragraph, the Agreement may be terminated immediately by the City and all taxes previously abated by virtue of this Agreement may be recaptured from Lessor and Lessee. In such event, such taxes must be paid to the City, and other political subdivisions that are parties to this Agreement, within sixty (60) days from the date of termination. If the City 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 Lessee allows the ad valorem taxes owed the City 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 Lessee. In such event, such taxes must be paid to the City, and other political subdivisions that are parties to this Agreement, within sixty (60) days from the date of termination.