Laserfiche WebLink
WHEREAS, pursuant to the TIF Act, the TIF Ordinance, and this Agreement, the Developer <br />desires to agree, for itself and for each of its successors and assigns as Owners of all or any portion of any <br />of the real property comprising the TIF Site, to pay Service Payments in an amount equal to the amount of <br />real property taxes that would have been paid with respect to the real property comprising the TIF Site <br />had the TIF Exemption not been granted by the City under the TIF Act and the TIF Ordinance and <br />applied for and allowed thereunder, subject to the CRA Exemption as it may apply to CRA Improvements <br />made by the Developer; and <br />WHEREAS, the parties have entered into a Development Agreement dated January 29, 2021 <br />("Development Agreement") which, among other things, lays out the agreed upon plan and schedule of <br />development, including restrictions on use of the Development Site; and <br />WHEREAS, the obligation of the City to provide the statutory service payments generated from <br />the Project (the "Project TIF Revenue") for the Development in accordance with this Agreement is <br />contingent upon the satisfaction of all of the contingencies with respect to the Development contained in <br />the Development Agreement entered into between parties. <br />NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter <br />contained, the City and the Developer covenant, agree, and bind themselves as follows: <br />SECTION 1. TAX EXEMPTION; PRIORITY OF EXEMPTIONS. In accordance with O.R.C. <br />Section 5709.41, and subject to the terms of the Development Agreement, the parties hereby agree that <br />the TIF Exemption is a non -school 100% exemption from real property taxation for the Improvement for <br />a period commencing with the effective date of the TIF Ordinance and ending on the earlier of (i) 30 <br />years after such exemption commenced or (ii) the date on which the City can no longer require service <br />payments in lieu of taxes, all in accordance with the requirements of the TIF Statutes (the "Exemption <br />Period"). Subject to the CRA Exemption, each Owner shall make Service Payments in an amount equal <br />to the real property taxes that would have been payable with respect to the Improvement owned by that <br />Owner had an exemption with respect to such Improvement not been applied for by the Owner and <br />allowed under O.R.C. Section 5709.41. Each Service Payment to be made under this Agreement will <br />made on a semi-annual basis in an amount equal to one-half of the annual property tax amount that would <br />have been payable had the TIF Exemption not been granted. The Service Payments shall be due and <br />payable on each January 15 and July 15 or such other date as the Treasurer of Cuyahoga County, Ohio <br />(the "County Treasurer") determines property taxes are due (such date being hereinafter referred to as a <br />"Service Payment Date") until expiration or termination of the TIF Exemption. <br />Notwithstanding the obligation of the Owners to make Service Payments, if a parcel of real <br />property within the TIF Site is subject to a CRA Exemption authorized by the CRA Ordinance, the CRA <br />Exemption shall apply to the CRA Improvements thereon before the TIF Exemption applies to the <br />Improvements thereon and, during the term of the CRA Exemption, the obligation of the Owners to make <br />certain Service Payments will be reduced as the CRA Exemption is applied to reduce a portion of the real <br />property tax liability of the Owners of the TIF Site. For the sake of clarity, no Service Payments will be <br />required for any CRA Improvements during the term of the CRA Exemption, and the TIF Exemption <br />shall be subordinate to the CRA Exemption for the term of such CRA Exemption. <br />SECTION 2. OBLIGATION TO MAKE SERVICE PAYMENTS. In the event that any Service <br />Payment or any installment thereof, is not paid when due by any Owner on any Service Payment Date, to <br />the extent that the County does not impose a late fee or delinquency charge, the City may impose and <br />collect a late payment charge, payable to the City, in the amount of the charges for late payment of real <br />property taxes, including penalty and interest, which would have been paid pursuant to O.R.C. Section <br />323.121 on the delinquent amount. <br />2 <br />16088754v2 <br />