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§ 32.05 ESTABLISHMENT OF ANNUAL SERVICE CHARGE.
   (A)   The housing development identified as Olde Mill and the property upon which it sits shall be exempt from all property taxes as provided in the Act and this subchapter from and after the date that restoration of the project is substantially completed as evidenced by a certificate of occupancy from the applicable public authority; provided, however, that this exemption shall not apply to accessory fixtures or structures located on the property (e.g., cell towers, etc.). 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 subchapter and the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this subchapter, and in consideration of the sponsor's offer, subject to receipt of an allocation of LIHTC 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 attributable to the portion of the project occupied by persons of low or moderate income. The exemption is contingent on the sponsor remaining current with all annual service charges.
   (B)   The initial annual service charge shall be equal to $18,667.64 (which is equal to the tax on the property on which the project is located for the 2011 tax year). In each succeeding year the annual service charge shall increase by the same percentage increase set forth in the inflation rate multiplier developed and published by the state for the immediately preceding year, but shall not increase by more than 3% in any one year. However, in no event, shall the service charge drop below the taxes paid on the property on which the project is located for the 2011 tax year, nor shall the service charge exceed the taxes that would be paid but for the Act or this subchapter.
(Ord. 110613-1, passed 6-13-11)