07-2021 - Solove TIF Spitzer Chrysler site

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SERVICE PAYMENT AGREEMENT THIS SERVICE PAYMENT AGREEMENT (the "Agreement") is made and entered into as of the day of March, 2021, by and among the CITY OF LAKEWOOD, OHIO, a municipal corporation (the "City"), and JDSI VODE, LLC an Ohio limited liability company (the "Developer"). WTTNFqqF.TH- VMEREAS, the Developer is pursuing the development of several parcels of land as a mixed -use development (the "Development"), consisting of an approximately 2.75-acre site currently identified as 13901 Detroit Avenue, 13815 Detroit Avenue, 1427 Parkwood Road and 1406 Wyandotte Avenue and as Parcel IDs 31501101, 31501102) 315010705 31501069 and 31501036, and more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the "TIF Site"); and WHEREAS, the TIF Site is located within the municipal corporate boundaries of the City, the territorial boundaries of the County of Cuyahoga, Ohio (the "County"); and WHEREAS, upon completion, the Development would significantly increase the assessed valuation of the TIF Site; and VMEREAS, the Developer, in its capacity as owner of the fee simple interest in the TIF Site, may in the future convey all or any portion of or interest in any of the real property comprising the TIF Site to subsequent owners of all or any portion of or interest in any of the real property comprising the TIF Site (singularly an "Owner" and collectively the "Owners"); and* WHEREAS, pursuant to Ohio Revised Code ("O.R.C.") Sections 5709.41 through 5709.43 (together with related provisions of the Ohio Revised Code, the "TIF Act"), and Ordinance No. [ passed by the Council of the City (the "Council") on March [_], 2021, a copy of which is attached as Exhibit B attached hereto and incorporated herein by this reference (the "TIF Ordinance"), the City has, among other actions: (1) declared 100% of the improvement to the real property (the "Improvement") included in the TIF Site to be a public purpose and exempt from real property taxation for the Exemption Period (as defined herein) (the "TIF Exemption"); (2) provided for service payments in lieu of taxes (the "Service Payments"), as an obligation running with the land for the Exemption Period (as defined herein) payable with respect to the real property comprising the TIF Site; (3) authorized the use of the Service Payments for such uses by the City as permitted under Ohio law, including, without limitation, payment of the costs of any improvements for urban redevelopment purposes and other purposes described in the TIF Ordinance related to the TIF Site as authorized in O.R.C. Section 5709.41; and (4) determined to enter into this Agreement with the Developer, as initial Owner of the entire TIF Site during the term of construction of the Development, to provide for, among other things, the payment of the Service Payments by the Owners with respect to the TIF Site; and WHEREAS, pursuant to Ordinance No. 2019-08 passed by the Council on December 2, 2019 (the "CRA Ordinance"), the City, to foster the investment and development of affordable housing in new multi -family and mixed use construction projects in Community Reinvestment Area #1, has, among other actions: (i) declared the construction of new multi -family and certain portions of mixed -use construction projects (the "CRA Improvements") within the Community Reinvestment Area #1, which area includes the TIF Site, to be a public purpose; (ii) declared that 100% of the CRA Improvements may be exempt from real property taxation for a period of 15 years if the affordable housing requirements in accordance with the CRA are met (the "CRA Exemption"); and 16088754v2