Common use of Anchor Project PILOT Clause in Contracts

Anchor Project PILOT. (i) Following the date NTIFA issues a Certificate of Completion for the Anchor Project having been constructed, in the event that the Anchor Project is not assessed ad valorem taxes in any year in which the Property is located within an active increment district, CC Trust shall cause to be paid to NTIFA an annual payment in lieu of ad valorem taxes (“PILOT Payment(s)”) on the real or personal property comprising such components. Such annual PILOT Payments shall be made by December 31 annually. The amount of such PILOT Payments will be established by multiplying $290,000,000.00 (or, if individual components are not assessed, $263,000,000.00 for the arena component of the Anchor Project or $27,000,000.00 for the parking garage component of the Anchor Project, individually) by an assessment ratio of 12%, then increasing the resulting product by 1.5% for every 12 month period that has passed since NTIFA issued a Certificate of Completion for the Anchor Project, and then multiplying that resulting product by the annual ad valorem tax levy millage rate in effect within TIF 5 for that tax year. CC Trust shall have no obligation to make any PILOT Payments for or on behalf of any future operator, tenant, or other user of the Anchor Project. (ii) The obligations under Section 4.08(c)(i) are for the benefit of NTIFA, the City, and TIF 5. To secure the obligations under Section 4.08(c)(i), CC Trust shall cause to be executed and filed in the Cleveland County Land Records a covenant, in form substantially as provided in Exhibit 2 to this Agreement (subject to revisions necessary to reflect the nature of the land transfer arrangement between Landowner and CC Trust), benefitting NTIFA and the City and running with the land upon which the Anchor Project is constructed, obligating the appropriate party or any successor in interest to make such PILOT Payments.