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3. All Tax Abatement Agreements shall set out in detail the exact method to be used in <br />computing each year's exemption. <br />4. No tax abatement shall be given in any year in which the facility fails to meet the <br />employment minimum set forth in Section 66-142(h), "Basic Qualifications for Tax <br />Abatement" of this Article. <br />(h) Basic Qualifications for Tax Abatement. To be eligible for designation as a reinvestment zone <br />and receive tax abatement the planned improvement: <br />1. must be shown to increase the assessed value of the property at least $3.0 million <br />upon completion of the contractually -defined "Construction Period;" <br />2. must be shown to directly create or prevent the loss of permanent full-time <br />employment for at least 10 people within the reinvestment zone upon completion of <br />the contractually -defined "Employment Period;" <br />3. must be shown not to solely or primarily have the effect of transferring employment <br />from one part of City to another. <br />4. the City may, at its discretion, take into account alternative or competing site <br />information provided with the application for tax abatement. <br />(i) Taxability. From the execution of the abatement to the end of the agreement period, taxes shall <br />be payable as follows: <br />1. value of ineligible property (as provided in Section 66-142 (e), "Ineligible <br />Property,") shall be fully taxable; <br />2. the non abatable real property within the reinvestment zone shall be fully taxable <br />each year; <br />3. additional value of new eligible property shall be taxable in the manner described in <br />Section 66-142 (g), "Value and Term of Abatement;" <br />4. when due to the employment formula (as described in Section 66-142 (g), "Value <br />and Term of Abatement,"), the maximum amount eligible for abatement ("the cap") <br />is less than the total value of the new facility, the amount of the cap will be reduced <br />each year at the same rate as the taxable improvements are reduced in value from the <br />previous year's value; and <br />5. each year's exemption will be computed by HCAD in the following manner: <br />(a) The Base Property Value will be the current value of all real property plus fixed - <br />in -place machinery and equipment within the zone that is not subject to <br />abatement. <br />-7- <br />