07-2022 TIF for W. 117th Phantasy/Mack Buildings

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real property taxes that would have been paid with respect to the real property comprising the TIF Site had the TIF Exemption not been granted by the City under the TIF Act and the TIF Ordinance and applied for and allowed thereunder; and WHEREAS, the parties have entered into a Development Agreement dated July 21, 2021 ("Development Agreement") which, among other things, lays out the agreed upon plan and schedule of development, including restrictions on use of the TIF Site; and WHEREAS, the obligation of the City to provide the statutory service payments generated from the Project (the "Project TIF Revenue") for the Development in accordance with this Agreement is contingent upon the satisfaction of all of the contingencies with respect to the Development contained in the Development Agreement entered into between parties. NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, the City and the Developers covenant, agree, and bind themselves as follows: SECTION 1. TAX EXEMPTION; PRIORITY OF EXEMPTIONS. In accordance with O.R.C. Section 5709.41, and subject to the terms of the Development Agreement, the parties hereby agree that the TIF Exemption is a non -school 100% exemption from real property taxation for an Improvement for a period commencing for each parcel with the first tax year that begins after the effective date of the TIF Ordinance and in which an Improvement on that Parcel would first appear on the tax list and duplicate of real and public property were it not for the TIF Exemption, and ending for each Parcel on the earlier of (i) 30 years after such exemption commenced, or (ii) the date on which the City can no longer require service payments in lieu of taxes, all in accordance with the requirements of the TIF Statutes (the "Exemption Period"). Each Owner shall make Service Payments in an amount equal to the real property taxes that would have been payable with respect to the Improvement owned by that Owner had an exemption with respect to such Improvement not been applied for by the Owner and allowed under O.R.C. Section 5709.41. Each Service Payment to be made under this Agreement will made on a semi-annual basis in an amount equal to one-half of the annual property tax amount that would have been payable had the TIF Exemption not been granted. The Service Payments shall be due and payable on each January 15 and July 15 or such other date as the Treasurer of Cuyahoga County, Ohio (the "County Treasurer") determines property taxes are due (such date being hereinafter referred to as a "Service Payment Date") until expiration or termination -of the TIF Exemption. SECTION 2. OBLIGATION TO MAKE SERVICE PAYMENTS. In the event that any Service Payment, or any installment thereof, is not paid when due by any Owner on any Service Payment Date, to the extent that the County does not impose a late fee or delinquency charge, the City may impose and collect a late payment charge, payable to the City, in the amount of the charges for late payment of real property taxes, including penalty and interest, which would have been paid pursuant to O.R.C. Section 323.121 on the delinquent amount. It is intended and agreed that the covenants provided in this Agreement shall be covenants running with the land and that they shall, in any event and without regard to technical classification or designation, legal or otherwise, be binding to the fullest extent permitted by law and equity for the benefit and in favor of and enforceable by the City. It is further intended and agreed that this Agreement and the Development Agreement and the covenants therein shall remain in effect for the full period of the TIF Exemption permitted in accordance with the requirements of the Development Agreement, the TIF Act, and the TIF Ordinance enacted pursuant thereto. Each Owner shall only be responsible for making Service Payments that become due and payable during the period of that Owner's ownership of all or any portion of the TIF Site and only with respect to the portion of the TIF Site owned by the Owner. Upon satisfaction of each Owner's obligations under this Agreement and termination of the obligations of the Owners to make the 2 173518640