Res 2007-112 - Laserfiche WebLink

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PART 2. PROPERTY IMPROVEMENTS Section 2.01. SMVP intends to construct a new professional office and medical facility approximately 75,000 square feet in size (the "Facility") on the Property at a cost of approximately $8,000,000. The Facility will be constructed in four phases. Section 2.02. SMVP will endeavor to complete Phase One and Phase Two of the Facility by June 30,2007. Section 2.03. SMVP will ensure that occupancy of Phase One and Phase Two of the Facility is achieved by December 31,2007, and that occupancy of Phase One and Phase Two of the Facility is maintained during calendar year 2008. The requirement for achieving occupancy of Phase One and Phase Two of the Facility will be met for 2008 if 75% of the square footage of the two Phases is under lease to one or more third parties as of December 31, 2008. PART 3. TERM. ABATEMENT PERIOD AND RATE OF ABATEMENT Section 3.01. The existing and any real estate or ad valorem property taxes hereafter imposed by the City on 50% of the taxable value of Phase One and Phase Two ofthe Facility as ofJanuary 1, 2007 will be abated (the "Tax Abatement") for three years if SMVP satisfies all of its obligations under this Agreement. The three years of Tax Abatement (the "Abatement Period") will be the tax years 2007 through 2009, inclusive. Section 3.02. The Tax Abatement will not include 1) the value of any inventory, materials, equipment, or other personal property, 2) any increase in the value of the Property (after the date of this Agreement) upon which the Facility is situated, 3) any increase in the value of Phase One and Phase Two of the Facility after January 1, 2007 (including any portion of Phase One and Phase Two of the Facility completed after that date), or 4) any of the value of Phase Three ofthe Facility. PART 4. RECORDS AND AUDITS Section 4.01. On or before February 1st of each year of the Abatement Period, SMVP will furnish a letter to the City Manager certifying whether SMVP has complied with this Agreement for the previous calendar year. The City will evaluate the information furnished, and will have the right to request and receive from SMVP additional information needed to help the City determine SMVP=s compliance with this Agreement. Upon the City=s verification of compliance with this Agreement by SMVP for the previous calendar year, the City will issue a tax abatement certificate to SMVP validating the Tax Abatement for the current tax year. 2