(A) The village acknowledges 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 chapter and the qualification of the housing development for exemption from all property taxes and payment of an annual service charge in lieu of taxes in an amount established in accordance with this section. In consideration of the sponsor’s offer to rehabilitate, own and operate the housing development, subject to receipt of the tax credits from the Authority, the village agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes that would otherwise be assessed to the housing development under Michigan law.
(1) Effective upon the adoption of this chapter and subject to the receipt by the village of the “Notification of Exemption” (or such other similar notification) by the sponsor and/or the Authority, the annual service charge shall be equal to $6,304.
(2) Each year thereafter, the annual service charge to be paid by the sponsor to the village, as stated in division (A)(1) of this section, shall increase 2%. Assuming the housing development is exempt from taxes and subject to the annual service charge in lieu of taxes beginning in the year 2007, the amounts due under the terms of this chapter will be as follows:
Year of PILOT | Calendar Year | Annual Service Charge | 2% Annual Increase |
Year of PILOT | Calendar Year | Annual Service Charge | 2% Annual Increase |
1 | 2007 | $6,304.00 | $126.08 |
2 | 2008 | $6,430.08 | $128.60 |
3 | 2009 | $6,558.68 | $131.17 |
4 | 2010 | $6,689.86 | $133.80 |
5 | 2011 | $6,823.65 | $136.47 |
6 | 2012 | $6,960.13 | $139.20 |
7 | 2013 | $7,099.33 | $141.99 |
8 | 2014 | $7,241.31 | $144.83 |
9 | 2015 | $7,386.14 | $147.72 |
10 | 2016 | $7,533.86 | $150.68 |
11 | 2017 | $7,684.54 | $153.69 |
12 | 2018 | $7,838.23 | $156.76 |
13 | 2019 | $7,995.00 | $159.90 |
14 | 2020 | $8,154.90 | $163.10 |
15 | 2021 | $8,317.99 | $166.36 |
16 | 2022 | $8,484.35 | $169.69 |
17 | 2023 | $8,654.04 | $173.08 |
18 | 2024 | $8,827.12 | $176.54 |
(B) The housing development, and the property on which it shall be constructed, shall be exempt from all property taxes from and after the commencement of rehabilitation of the housing development by the sponsor under the terms of this chapter.
(Ord. 05 10-07, passed 10-1-2007)