Payment in Lieu of Taxes Clause Samples

Payment in Lieu of Taxes. (PILOT)5

Payment in Lieu of Taxes. The Tenant agrees to make payments in lieu of taxes on the Project for each year that the Project is exempt from ad valorem taxes and to pay as an Imposition hereunder taxes for any year in which the Project did not, or does not qualify, in accordance with the separate Agreement for Payment in Lieu of Taxes delivered concurrently with this Project Lease.

Payment in Lieu of Taxes. The Redeveloper and Borough acknowledge that the Project consists of an inclusionary housing development to assist the Borough in meeting its constitutional obligation to provide very-low, low and moderate income housing. The Parties agree that to ensure that such inclusionary Project is a success, and upon satisfaction of all requirements of the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq., the Borough and one or more urban renewal entities, each an Affiliate of the Redeveloper, shall enter into one or more Financial Agreements providing for a payment in lieu of taxes (“PILOT”) for the Project. The Parties agree that the PILOT for each Phase of the Project shall be computed as follows: (a) for the East Side Project, ninety-five percent (95%) of otherwise applicable taxes to be imposed on the East Side Project; (b) for the West Side Project, ninety-five percent (95%) of otherwise applicable taxes to be imposed on the West Side Project; and (c) for the Lake Drive Project, six and two hundred eighty five thousandths percent (6.285%) of annual gross revenue generated by the Lake Drive Project. In addition, the Financial Agreement(s) shall provide for an exemption of the land underlying each Phase of the Project from conventional taxation. Each Party shall be responsible for its own attorney’s fees in connection with the negotiation and preparation of the Financial Agreement(s). There shall be no administrative fee charged by the Borough pursuant to the Financial Agreement(s). The urban renewal entities referenced herein shall each file an application for tax exemption pursuant to N.J.S.A. 40A:20-8 within 45 days of the Effective Date.

Payment in Lieu of Taxes. Section 4.1.1 is hereby added to the DDA as follows:

Payment in Lieu of Taxes. The Company agrees that, during each year the Project is exempt from ad valorem taxes by reason thereof, the Company will make a payment in lieu of taxes to the Issuer in the amounts and at the times set forth in the Performance Agreement providing for payments in lieu of such ad valorem taxes.

Payment in Lieu of Taxes. (PILOT) TAX POLICY COMPARISON

Payment in Lieu of Taxes. Redeveloper agrees to make payments in lieu of taxes, immediately upon receipt of notice from Village, if for any reason at any time TIF Revenues received by the Village are not sufficient to pay principal and interest on the TIF Indebtedness when due. This payment in lieu of tax obligation may be represented by a note or other evidence of indebtedness and shall, if required by Village, be secured by a mortgage or deed of trust on the Redevelopment Area in favor of the Village.

Payment in Lieu of Taxes. Chugach shall pay to Municipality an annual payment in lieu of taxes (the “PILT Payment”) equal to the product, for each district in the Legacy Territory, of (i) the Adjusted Net Book Value for the current year, and (ii) the current Millage Rate for each such district. The PILT Payment shall be variable in amount and recalculated each year as set forth herein. Exhibit A sets forth an example of the calculation of PILT Payments for illustrative purposes only.

Payment in Lieu of Taxes. The Lessee shall be responsible for the following payments or for payments in lieu of taxes (“PILOT”) during the use period in the event the Property is deemed exempt from ad valorem real estate taxes; in which case, Lessee will pay the City an annual PILOT in an amount initially equal to sixty cents ($.60) per foot, per boat slip. The PILOT will increase on each anniversary of the Lease Date at a rate equal to three percent (3%). If Lessee is required to pay ad valorem taxes on the Property, it shall not be required to pay the PILOT.