51-04 Sharing Rockport Taxes w/ Schools

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"TIP Exemption" means the exemption from real and public utility property taxes provided under the TIP Ordinance on the assessed valuation of Improvements on the Property. "TIP Ordinance" means Ordinance No. 47-04, enacted _' 2004 by the Lakewood City Council. Section 2. Disposition of Service Pavrnents. Under the tenus of the TIP Ordinance, Service Payments are to be deposited upon receipt by the City in the "Detroit AvenuelRockport Square Public Improvement Tax: Increment Equivalent Fund" (the "Fund"), created in accordance with Section 5709.43 ofthe Ohio Revised Code. Following their deposit in the Fund [and not later than March I and September I of each year, commencing with the year in which Service Payments are first received by the City], the City shall cause the amounts then on deposit in the Fund to be applied, to the extent available, in the following order of priority: (a) FIRST, so as to provide the School District with the benefit of the bond levy approved by the voters of the School District at the March 2, 2004 election and all subsequent non-renewal levies, in an amount equal to (i) the portion of Property Taxes on the Improvements that would otherwise have been payable to the School District at such time in the absence of the TIP Exemption, reduced (ii) by the portion of such Property Taxes that would have been payable to the School District under the School District millage levied against the 2003 tax duplicate for collection in 2004; (b) SECOND, to any trustee for the Bonds (or in the absence of such a trustee, to the holders of the Bonds as their respective interests may appear) in the amount of all Debt Service then due or coming due within the next six months (c) THIRD, to Kenneth Lurie or his assignee ("Lurie") in the amount of all principal and interest then due or coming due within the next six months on any outstanding debt obligations of the City to Lurie ("Lurie Notes"), which Lurie Notes are expected to be issued from time to time in exchange for certain advances by Lurie to the City for the purpose of paying Debt Service on the Bonds); (d) FOURTI!, at the discretion of the City, either to redeem Bonds or to set aside amounts in a sinking fund for the future redemption of outstanding Bonds; ( e) FIFTII, to redeem any outstanding Lurie Notes; (f) SIXTH, at such time as no Bonds or Lurie Notes remain outstanding, to the City, in an amount that does not exceed $500,000 per year and $1 million in the aggregate, to be applied by the City for the cost of Public Improvements in the Incentive District; and (g) SEVENTI!, any amounts remaining in the Fund after all of the foregoing priorities have been satisfied shall be divided between the City and the School District in the following manner: (i) a portion of the balance of the Fund corresponding to the 3