(a) It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for its low income persons and families and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the Act. The City is authorized by this Act to establish or change the service charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation under this Act at any amount it chooses, not to exceed the taxes that would be paid but for this Act. It is further acknowledged that such housing for low income persons and families is a public necessity, and as the City will be benefited and improved by such housing, the encouragement of the same by providing real estate tax exemption for such housing is a valid public purpose. It is further acknowledged that the continuance of the provisions of this article for tax exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this article are essential to the determination of economic feasibility of the housing projects that is constructed or rehabilitated with financing extended in reliance on such tax exemption.
(b) The City acknowledges that the Sponsor (as defined below) owns and operates a housing project identified as Wayne Towers Senior Citizen High-Rise (the “Development”) on certain premises which are legally described as set forth in Exhibit A attached to Ordinance No. 2020-02 and by reference made a part hereof in the City and has offered to pay the City on account of the development an annual service charge for public services in lieu of all ad valorem property taxes.
(Ord. 2020-02. Passed 6-16-20.)