Res 2021-086/providing no objection to the submission of an application for low income housing tax credits to the Texas Department of Housing and Community Affairs for the proposed Legacy Square Senior (55+)

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AGREEMENT PROVIDING FOR PAYMENT IN LIEU OF TAXES FOR LEGACY SQUARE LOW INCOME HOUSING TAX CREDIT PROJECT This agreement (the "Agreement") dated as of May AL, 2021 is entered into by and between the City of San Marcos, Texas ("City"), and Legacy Square Apartments, LP a Texas limited partnership (the "Partnership"), upon terms and conditions set forth herein. RECITALS WHEREAS, the Partnership intends to construct, equip and manage an affordable multifamily apartment facility in San Marcos, Hays County, Texas, to be known as Legacy Square Senior (55+) .Apartments and to be constructed on the property described on Exhibit A attached hereto (the "Facility" or the "Property"); and WHEREAS, the Facility will be exempt from ad valorem taxation pursuant to Section 11.11 of the Texas Tax Code (the "Exemption"); and WHEREAS, the City has a public purpose for entering into this Agreement and held a meeting on May 4, 2021, whereby the City decided that it is in the interest of the City and the public to enter into this Agreement to facilitate the development of affordable housing within the City; WHEREAS, following said hearing, the City further approved a Resolution of No Objection to the issuance of Low Income Housing Tax Credits for the Facility, subject to the requirement that the Partnership enter into an agreement with the City providing for the payment of funds in lieu of the tax revenue lost due to the Exemption; WHEREAS, the Partnership desires to make annual payments to the City (each a "Payment") to preserve tax revenue to the City that is lost through the Exemption; and WHEREAS, the City finds that this Agreement serves the public purpose of promoting affordable and workforce housing for its residents; NOW, THEREFORE, in consideration of the foregoing and other consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. The Partnership agrees to pay the City a Payment of $75,000.00, annually, as provided below. The Partnership agrees to continue to make the Payment, including increases as provided below, each subsequent year the Partnership owns the Facility and the Property receives an exemption from ad valorem taxes. After the first year, the Payment shall increase by $1,500.00 over the prior year's Payment for each subsequent year the Partnership owns the Facility and the Property receives an exemption from ad valorem taxes.. 2. If at any time the Property no longer receives an exemption from ad valorem taxes, this Agreement shall automatically terminate, and be of no further force and effect. 3. Payments are date from the Partnership to the City on or before January 31 for the previous tax year. The first Payment is due from the Partnership to the City on or before January