The Housing Development known as the Meadow Hills North Family Apartment Development and the property on which it shall be renovated (Property Identification Number 62-13-36-455-005; common address of 106 Meadow Hills Lane) shall be exempt from all ad valorem property taxes from and after the commencement of renovation, as further limited, however by this Article. Said renovation shall commence within one year of the effective date of this Article.
The City of Fremont, acknowledging that the Sponsor and the Authority have established the economic feasibility of the existing Low Income Family Housing Development in reliance upon the enactment and effect of this Article and the qualification of the Low Income Family Housing Development for the exemption from all property taxes and a payment in lieu of taxes as established in this Article, and in consideration of the Sponsor's offer, subject to assumption of the initial Mortgage Loan from the USDA Rural Development program and the receipt of a supplemental Mortgage Loan from the USDA Rural Development program, and an allocation under the LIHTC program, to renovate, own and operate the Low Income Family Housing Development, agrees to accept payment of an annual service charge for public services in lieu of all property taxes.
The annual service charge shall be equal to ten (10) percent of the annual shelter rents, but in no event less than $18,000. Beginning in 2010, the annual service charge shall be the greater of: (1) ten (10) percent of the annual shelter rents; or (2) $18,000 PLUS a percentage increase equal to the net percentage increase in the U.S. Bureau of Labor Statistics "Chained Consumer Price Index for All Urban Consumers: U.S. City Average for all Items, Expenditure Categories and Commodity and Service Groups" (December 1999=100) (the "C-CPI-U") from the C-CPI-U as published in January 2008 and the C-CPI-U published in January of the year in which the service charge is due. (Ord. O-07-06, 11-19-07)