Common use of Payments in Lieu of Real Estate Taxes Clause in Contracts

Payments in Lieu of Real Estate Taxes. (A) It is recognized that under the provisions of the Act, the Agency is required to pay no taxes or assessments upon any of the Property acquired by it or under its jurisdiction, control or supervision or upon its activities. It is not the intention, however, of the parties hereto that the Real Estate Owner Project Facility be treated as exempt from real property taxation. Accordingly, the parties hereto acknowledge that a Payment in Lieu of Tax Agreement will be executed with respect to the Real Estate Owner Project Facility, and a Real Property Tax Exemption Form will be filed by the Agency with respect to the Real Estate Owner Project Facility. Until either the expiration date of, or earlier termination of this Lease, any such Payment in Lieu of Tax Agreement, the Agency and the Real Estate Owner hereby agree that the Real Estate Owner (or any subsequent user of the Real Estate Owner Project Facility pursuant to this Lease Agreement) shall be required to make or cause to be made payments in lieu of real estate taxes in the amounts and in the manner set forth in such Payment in Lieu of Tax Agreement. (B) In the event that (1) the Real Estate Owner Project Facility would be subject to real property taxation if the Agency did not have a leasehold interest therein but shall be deemed exempt from real property taxation due to the involvement of the Agency therewith, and (2) the Payment in Lieu of Tax Agreement shall not have been entered into by the Agency and the Real Estate Owner, or if entered into the Payment in Lieu of Tax Agreement shall for any reason no longer be in effect, the Agency and the Real Estate Owner hereby agree that the Real Estate Owner, or any subsequent user of the Real Estate Owner Project Facility under this Lease Agreement, shall in such event be required to make or cause to be made payments in lieu of taxes to the school district or school districts, county, city, town, village and other political units wherein the Real Estate Owner Project Facility is located having taxing powers (such political units are hereinafter collectively referred to as the “Taxing Entities”) in such amounts as would result from taxes being levied on the Real Estate Owner Project Facility by the Taxing Entities as if the Agency did not have a leasehold interest in Real Estate Owner Project Facility and the Project Facility was not under the jurisdiction, control or supervision of the Agency, but with appropriate reductions similar to the tax exemptions and credits, if any, which would be afforded to the Real Estate Owner if he were the owner of the Real Estate Owner Project Facility. It is agreed that the Agency, in cooperation with the Real Estate Owner, (a) shall cause the Real Estate Owner Project Facility to be valued for purposes of determining the amounts due hereunder as if the Agency did not have a leasehold interest in the Real Estate Owner Project Facility and the Real Estate Owner Project Facility was not deemed by or under the jurisdiction, control or supervision of the Agency as aforesaid by the appropriate officer or officers of any of the Taxing Entities as may from time to time be charged with responsibility for making such valuations, (b) shall cause to be appropriately applied to the valuation or valuations so determined the respective tax rate or rates of the Taxing Entities that would be applicable to the Real Estate Owner Project Facility if the Agency were not so involved, (c) shall cause the appropriate officer or officers of the Taxing Entities charged with the duty of levying and collecting such taxes to submit to the Real Estate Owner, when the respective levies are made for purposes of such taxes upon Property privately owned as aforesaid, statements specifying the amounts and due dates of such taxes which the Taxing Entities would receive in such Property were so privately owned by the Real Estate Owner and not deemed owned by or under the jurisdiction, control or supervision of the Agency, and

Payments in Lieu of Real Estate Taxes. (A) It is recognized that under the provisions of the Act, the Agency is required to pay no taxes or assessments upon any of the Property acquired by it or under its jurisdiction, control or supervision or upon its activities. It is not the intention, however, of the parties hereto that the Real Estate Owner Project Facility be treated as exempt from real property taxationtaxation by reason of the Agency’s leasehold interest therein. Accordingly, the parties hereto acknowledge that a Payment payment in Lieu lieu of Tax Agreement tax agreement will be executed with respect to the Real Estate Owner Project Facility, and a Real Property Tax Exemption Form will be filed by the Agency with respect to the Real Estate Owner Project Facility. Until either the expiration date of, or earlier termination of this Lease, any such Payment payment in Lieu lieu of Tax Agreementtax agreement, the Agency and the Real Estate Owner Company hereby agree agrees that the Real Estate Owner Company (or any subsequent user of the Real Estate Owner Project Facility pursuant to this Lease Agreement) shall be required to make or cause to be made payments in lieu of real estate taxes in the amounts and in the manner set forth in such Payment payment in Lieu lieu of Tax Agreementtax agreement. (B) In the event that (1) the Real Estate Owner Project Facility would be subject to real property taxation if the Agency did not have a leasehold interest therein but shall be deemed exempt from real property taxation due to the involvement of the Agency therewith, and (2) the Payment in Lieu of Tax Agreement shall not have been entered into by the Agency and the Real Estate OwnerCompany, or if entered into the Payment in Lieu of Tax Agreement shall for any reason no longer be in effect, the Agency and the Real Estate Owner Company hereby agree that the Real Estate OwnerCompany, or any subsequent user of the Real Estate Owner Project Facility under this Lease Agreement, shall in such event be required to make or cause to be made payments in lieu of taxes to the school district or school districts, county, city, town, county, village and other political units wherein the Real Estate Owner Project Facility is located having taxing powers (such political units are hereinafter collectively referred to as the “Taxing Entities”) in such amounts as would result from taxes being levied on the Real Estate Owner Project Facility by the Taxing Entities as if the Agency did not have a leasehold interest in Real Estate Owner Project Facility and the Project Facility was were not deemed owned by or under the jurisdiction, control or supervision of the Agency, but with appropriate reductions similar to the tax exemptions and credits, if any, which would be afforded to the Real Estate Owner Company if he it were the owner of the Real Estate Owner Project FacilityFacility and the Agency did not have a leasehold interest therein. It is agreed that the Agency, in cooperation with the Real Estate OwnerCompany, (a) shall cause the Real Estate Owner Project Facility to be valued for purposes of determining the amounts due hereunder as if the Agency did not have a leasehold interest in the Real Estate Owner Project Facility and the Real Estate Owner Project Facility was not deemed by or under the jurisdiction, control or supervision of the Agency as aforesaid by the appropriate officer or officers of any of the Taxing Entities as may from time to time be charged with responsibility for making such valuations, (b) shall cause to be appropriately applied to the valuation or valuations so determined the respective tax rate or rates of the Taxing Entities that would be applicable to the Real Estate Owner Project Facility if the Agency were not so involved, (c) shall cause the appropriate officer or officers of the Taxing Entities charged with the duty of levying and collecting such taxes to submit to the Real Estate OwnerCompany, when the respective levies are made for purposes of such taxes upon Property privately owned as aforesaid, statements specifying the amounts and due dates of such taxes which the Taxing Entities would receive in such Property were so privately owned by the Real Estate Owner Company and not deemed owned by or under the jurisdiction, control or supervision of the Agency, andand (d) shall file with the appropriate officer or officers any accounts or tax returns furnished to the Agency by the Company for the purpose of such filing. (C) The Company shall pay or cause to be paid to the Taxing Entities when due all such payments in lieu of taxes with respect to the Project Facility required by Section 6.6(B) of this Lease Agreement to be paid to the Taxing Entities, subject in each case to the Company’s right to (1) contest valuations of the Project Facility made for the purpose of determining such payments therefrom, and (2) seek to obtain a refund of any such payments made. (D) Pursuant to Section 874(5) of the Act, if the Company shall fail to make or cause to be made any payments in lieu of taxes required under this Section 6.6, the Payment in Lieu of Tax Agreement and the Project Agreement, the amount or amounts so in default shall continue as an obligation of the Company until fully paid, and the Company hereby agrees to pay or cause to be paid the same, together with a late payment penalty equal to five percent (5%) of the amount due. If the Company shall fail to make any payment required by this Section 6.6, the Payment in Lieu of Tax Agreement and the Project Agreement when due and such delinquency shall continue beyond the first month, the Company’s obligation to make the payment so in default shall continue as an obligation of the Company to the affected Taxing Entity until such payment in default shall have been made in full, and the Company shall pay the same to the affected Taxing Entity together with (1) a late payment penalty of one percent (1%) per month for each month, or part thereof, that the payment due hereunder is delinquent beyond the first month, plus (2) interest thereon, to the extent permitted by law, at the greater of (a) the Default Interest Rate, or (b) the same rate per annum which would be payable if such amounts were delinquent taxes, until so paid in full.