(A) It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for low income persons and families and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the Act. The City of Bronson is authorized by the Act to establish or change a service charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation under this Act at any amount it chooses, not to exceed the taxes that would be paid but for this Act. It is further acknowledged that such housing for low income persons and families is a public necessity, and as the City of Bronson will be benefited and improved by such housing, the encouragement of the same by providing real estate tax exemption for such housing is a valid public purpose. It is further acknowledged that the continuance of the provisions of this subchapter for the tax exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this subchapter are essential to the determination ofeconomic feasibility ofthe housing development that is to be constructed or rehabilitated with financing extended in reliance on such tax exemption.
(B) The City of Bronson acknowledges that the Sponsor (as defined below) has offered, subject to receipt of an allocation under the Low Income Housing Tax Credit Program administered by the Michigan State Housing Development Authority, to construct, own and operate a housing development identified as The Bronson Senior Apartments on certain property located at 435 Wayne, parcel identification number 200-004-000-194-02, in the City of Bronson to serve low income seniors (age 62 and older), and that the Sponsor has offered to pay the City on account of this housing development an annual service charge for public services in lieu of all ad valorem property taxes.
(Ord. 204, passed 2-12-2018)