(a) Project Description. Valley View Phase I is an existing project located on North State Street in the City and consists of six one-bedroom and sixty-six two-bedroom apartments. The owner proposes the renovation of the project. The purpose of the project is to provide housing for low income persons and families.
(b) Determination. The City hereby determines that Valley View Phase I is a housing development as defined by this chapter and is entitled to be exempt from taxation but subject to the provisions of a service charge for payment in lieu of taxes (PILOT) as set forth in Act No. 346 of the Public Acts of 1966, as amended.
(c) Annual Service Charge. The amount of the annual service charge for the units which are occupied by low income persons or families is hereby established at 10% of the annual shelter rent. The annual service charge will be based on a constant 95% occupancy rate of the units which are subject to the charge. The annual service charge for the units not occupied by low income persons or families shall be equal to the full amount of the property taxes which would be paid on that portion of the development if the development were not tax exempt.
(d) Condition. The granting of this PILOT is conditioned upon the developer securing a mortgage from the Michigan State Housing Development Authority (project sponsor) for renovating Valley View Phase I.
(Ord. 447. Passed 4-10-07.)