Laserfiche WebLink
AGREEMENT PROVIDING FOR PAYMENT IN LIEU OF TAXES FOR <br />LANTANA ON BASTROP LOW INCOME HOUSING TAX CREDIT PROJECT <br />This agreement (the "Agreement") dated as of February 18, 2020 is entered into by and <br />between the City of San Marcos, Texas ("City"), and Mission DG, Ltd., a Texas limited <br />partnership (the "Partnership"), upon terms and conditions set forth herein. <br />RECITALS <br />WHEREAS, the Partnership intends to construct, equip and manage an affordable <br />multifamily apartment facility in San Marcos, Hays County, Texas, to be known as Lantana on <br />Bastrop Apartments and to be constructed on the property described on Exhibit A attached <br />hereto (the "Facility" or the "Property"); and <br />WHEREAS, the Facility will be exempt from ad valorem taxation pursuant to Section <br />11.11 of the Texas Tax Code (the "Exemption"); and <br />WHEREAS, the City has a public purpose for entering into this Agreement and held a <br />meeting on February 4, 2020, whereby the City decided that it is in the interest of the City and <br />the public to enter into this Agreement to facilitate the development of affordable housing <br />within the City; <br />WHEREAS, following said hearing, the City further approved a Resolution of No <br />Objection to the issuance of Low Income Housing Tax Credits for the Facility, subject to the <br />requirement that the Partnership enter into an agreement with the City providing for the <br />payment of funds in lieu of the tax revenue lost due to the Exemption; <br />WHEREAS, the Partnership desires to make annual payments to the City (each a <br />"Payment") to preserve tax revenue to the City that is lost through the Exemption; and <br />WHEREAS, the City finds that this Agreement serves the public purpose of <br />promoting affordable and workforce housing for its residents; <br />NOW, THEREFORE, in consideration of the foregoing and other consideration, the <br />receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: <br />1. The Partnership agrees to pay the City a Payment of $11,000.00, annually, as <br />provided below. The Partnership agrees to continue to make the Payment each subsequent year <br />the Partnership owns the Facility and the Property receives an exemption from ad valorem <br />taxes. <br />2. If at any time the Property no longer receives an exemption from ad valorem <br />taxes, this Agreement shall automatically terminate, and be of no further force and effect. <br />3. Payments are due from the Partnership to the City on or before January 31 for <br />the previous tax year. The first Payment is due from the Partnership to the City on or before <br />January 31 of the calendar year following the year of construction completion and occupancy <br />stabilization. If the Partnership fails to pay the Payment to the City within such time, and such <br />