Agenda Packets - 1997/10/06 - Laserfiche WebLink

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10/02/97 THU 17:02 FAX 16122889400 HOLMES&GALEY,LTD EJ004 • project, or (iv) any obligations issued in connection with the MHOP Units or any moneys due to the Government in connection with such MHOP Units remain unpaid, whichever period is the longest(the "Exemption Period"). (b) During the Exemption Period, the Municipality, on behalf of the Taxing Bodies, agrees that it will not levy or impose any real or personal property taxes upon the MHOP Units or upon the Authority with respect thereto. Because the MHOP Units consists of ten (10) units located within and under common private ownership with 46 additional housing units which comprise the Development, the property tax taxes and property tax exemption shall be determined as follows: (i) the tax capacity of the total Development shall be multiplied by a fraction, the numerator of which equals the total number of MHOP Units and the denominator of which equals the total number of housing units in the Development and (ii) the product thereof shall be deducted from said tax capacity. (c) During the Exemption Period, the Authority shall make, or cause to be made, annual payments in licu of taxes ("PILOT") in payment for the public services and facilities furnished from time to time without other cost'or charge for or with respect to the MHOP Units. Each PILOT shall be made at the time when real property taxes on the MHOP Units would be paid if it was subject to taxation, and shall be in an amount equal to either (i) five percent (5%) of the Shelter Rent actually collected but in no event to exceed five percent (5%) of the Shelter Rent charged with respect to such MHOP Units during the preceding calendar year, or (ii) the amount permitted to be • paid by applicable State law in effect on the date such payment is made. (d) Pursuant to Minnesota Statutes, Section 469.040, subdivision 3, the County shall distribute the PILOT among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year if the MHOP Units were not exempt from taxation; provided, however, that no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the MHOP Units were not exempt from taxation. (e) In the event the PILOT is not paid, no lien against the MHOP Units or assets of the Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. 4. During the Exemption Period, the Municipality, or other appropriate Taxing Body, without cost or charge to the Authority or tenants of the MHOP Units (other than PILOT)shall: (a) Furnish or cause to be furnished to the MHOP Units public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; (b) Vacate such streets, roads, and alleys within the area of the MHOP Units as may be necessary in the development thereof, and convey without charge to the Authority or Owner of the MHOP Units such interest as the Municipality, or other Taxing Body may have in such vacated areas; and, in so far as it is lawfully able to do so without \`•SIRVER\DOC\MNNI25\01 I'DOCS\COOP.DOC 7 COOPERATION AGREEMENT MPHAJCITY OF MOUNDS VIEW SILVER LAKE COMMONS DEVELOPMENT