(A) The housing development identified as Sugar Mills Apartments and the property on which it shall be constructed shall be exempt from all property taxes from and after the commencement of construction. The city, acknowledging that the sponsor and the Authority have established the economic feasibility of the housing development in reliance upon the enactment and continuing effect of this article, the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this article in consideration of the sponsors offer, subject to receipt of a mortgage loan from the Authority, to construct, own and operate the housing development, agrees to accept payment of an annual service charge for public services in lieu of all property taxes.
(B) The annual service charge shall be the greater of the following:
(1) Fourteen percent (14%) of the difference between the annual shelter rents actually collected and utilities; or
(2) A minimum payment determined as follows. In the first year of operation, the minimum payment shall be $35,900, prorated on a daily basis from the date the final occupancy permit is issued through the next August 31. Each year thereafter, this payment shall be adjusted annually by the lesser of: 5%; or the increase or decrease in the general price level for the preceding year, as defined in the Michigan Constitution, § 33. The general price level is also the same percentage used to calculate the taxable property value by the City Tax Assessor.
(1993 Code, § 64-5) (Ord. passed 8-12-2002(2); Ord. 2017-01, passed 2-27-2017; Ord. 2017-09, passed 9-25-2017; Ord. 2020-09, passed 12-14-2020)