Common use of Developer’s Payment of Ad Valorem Taxes; First Tax Increment Year Clause in Contracts

Developer’s Payment of Ad Valorem Taxes; First Tax Increment Year. (A) The Developer shall timely pay, or cause to be paid, all ad valorem taxes for the portions of the Site still owned by Developer, based on the Assessed Taxable Value and in accordance with current laws and ordinances. (B) The following examples assume that the Agency has triggered the taking of tax increment under the Project Area Budget such that Tax Increment Year 2011 is the first Tax Increment Year of the Project Area Budget. Pursuant to the Project Area Budget, the Agency may set the first Tax Increment Year as 2011, 2012 or 2013. The Developer understands that in order for Improvements constructed and installed on the Site during calendar year 2010 to be included on the final tax assessment rolls of Salt Lake County for Tax Increment Year 2011, and to generate a tax increment for Tax Increment Year 2011, the Improvements on the Site must be constructed, installed and completed on or before December 31, 2010. Improvements constructed, installed and completed during calendar year 2011 will appear on the 2012 tax assessment roll having a tax lien date of January 1, 2012. Tax increment resulting from property taxes paid on November 30, 2011, will be received by the Agency from the County in the spring. of 2012; when the County Treasurer pays to the Agency the tax increment monies which are available for distribution. (C) Notwithstanding the Agency’s right as set forth in the Project Area Budget to set the first Tax Increment Year as any year between 2011 and 2013, Developer and Agency agree that, unless otherwise agreed by them in writing, the Agency will set as the first Tax Increment Year of the Project Area Budget the first full calendar year after the completion of the Improvements at least equal to the Minimum Investment Amount, or the calendar year 2013, whichever is earlier. (D) According to the TEC Resolution, the first Tax Increment Year is 2017.