Common use of Payment in lieu of Ad Valorem Taxes Clause in Contracts

Payment in lieu of Ad Valorem Taxes. If all or a portion of the Project (other than the public parking component of the Parking Garage which shall not be subject to ad valorem taxes), during the Term, is no longer subject to ad valorem taxes (or to a tax imposed on the Project in lieu of or replacing an ad valorem tax) due to legal or judicial action or otherwise, then Developer shall, each year during the Term, make payments to the City in lieu of such ad valorem taxes, and/or applicable TIF (Tax Increment Financing) payments to the CRA, in an amount equal to that which would have accrued to the City and CRA if the Project was subject to ad valorem taxes in the applicable Rental Year (pro-rated for any partial calendar year). Such payment shall be made on the first day of April of each succeeding year.