§ 18-27. Recapture.

(a)

In the event that any type of facility, (as defined in section 18-22) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or accident or natural disaster or other event beyond the reasonable control of applicant or owner for a period of one hundred eighty (180) days during the term of a tax abatement agreement, then in such event the tax abatement agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each affected jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each affected jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the affected jurisdiction to whom the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident or natural disaster or other event beyond the control of applicant or owner. In the event the applicant or owner meets this burden and the affected jurisdiction is satisfied that the discontinuance of the production of goods or services was the result of events beyond the control of the applicant or owner, then such applicant or owner shall have a period of one (1) year in which to resume the production of goods and services. In the event that the applicant or owner fails to resume the production of goods or services within one (1) year, then the tax abatement agreement shall terminate and the abatement of all taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each affected jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each affected jurisdiction within sixty (60) days of the date of termination. The one-year time period, hereinabove-mentioned, shall commence upon written notification from the affected jurisdiction to the applicant or owner.

(b)

In the event that the applicant or owner has entered into a tax abatement agreement to make improvements to a facility of any type described in subsection (a) above, but fails to undertake or complete such improvements, then in such event the affected jurisdiction to whom the application for tax abatement was directed shall give the applicant or owner sixty (60) days' notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the affected jurisdiction, above-mentioned, that the applicant or owner has commenced to cure such failure within the sixty (60) days above-mentioned. In the event that the applicant or owner fails to demonstrate that he is taking affirmative action to cure his failure, then in such event the tax abatement agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each affected jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each affected jurisdiction within sixty (60) days of the date of termination.

(c)

In the event that the affected jurisdiction to whom application for tax abatement was directed determines that the applicant or owner is in default of any of the terms or conditions contained in the tax abatement agreement, then in such event the affected jurisdiction shall give the applicant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the satisfaction of the affected jurisdiction within the sixty (60) days' notice period, then the tax abatement agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to affected jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each affected jurisdiction within sixty (60) days of the date of termination.

(d)

In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax abatement owed to any affected jurisdiction, to become delinquent and fails to timely and properly follow the legal procedures for their protest or contest, then in such event the tax abatement agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination, under this subsection, takes place shall be payable to each affected jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each affected jurisdiction within sixty (60) days of the date of termination.

(e)

In the event that the applicant or owner, who has executed a tax abatement agreement with any affected jurisdiction, relocates the business, for which tax abatement has been granted, to a location outside of the designated reinvestment zone, then in such event, the tax abatement agreement shall terminate after sixty (60) days written notice by the affected jurisdiction to the owner/applicant. Taxes abated during the calendar year in which termination, under this subsection takes place shall be payable to each affected jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each affected jurisdiction within sixty (60) days of the date of termination.

(f)

The date of termination as that term is used in this section shall, in every instance, be the sixtieth day after the day the affected jurisdiction sends notice of default, in the mail to the address shown in the tax abatement agreement to the applicant or owner. Should the default be cured by the owner or applicant within the sixty-day notice period, the owner/applicant shall be responsible for so advising the affected jurisdiction and obtaining a release from the notice of default from the affected jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid.

(g)

In every case of termination set forth in subsections (a) through (e) above, the affected jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by owner (applicant) in the terms and conditions of the tax abatement agreement and shall so notify all other affected jurisdictions. Termination of the tax abatement agreement by the affected jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all tax abatement agreements of all other affected jurisdiction.

(h)

In the event that a tax abatement agreement is terminated for any of the reasons listed above or for whatever reason, then all taxes which otherwise would have been paid to the taxing units without the benefit of abatement shall be reinstated as if the abatement had never existed and shall incur penalties and interest charged at the statutory rate for delinquent taxes as determined by V.T.C.A., Tax Code §§ 33.01, 33.07, 33.08 and 33.11, and as if all notices required to impose the reinstated taxes, penalties and interest had been timely given and received. The reinstated taxes, penalties and interest shall be secured by tax liens as provided in the Texas Property Tax Code.

(Ord. No. 1078-4-2005, § 3(Exh. A), 4-5-2005; Ord. No. 1262-11-2010, § 2(exh. A), 11-2-10)