Common use of MUNICIPAL RATES Clause in Contracts

MUNICIPAL RATES. (1) Municipal Rates payable to the City in relation to the Development Area will be amounts determined in accordance with the succeeding provisions of this clause. (2) Subject to subclause (3) Municipal Rates for the Rating Year in which Project Completion occurs will be the lesser of — (a) $700,000.00; and (b) the amount which would have been assessed for Municipal Rates on the basis of a rate of .053692 of the GRV. (3) If Project Completion occurs otherwise than on the first day of a Rating Year, Municipal Rates payable in respect of the Rating Year in which Project Completion occurs shall be the aggregate of — (a) Municipal Rates which but for the provisions of this Agreement are payable in respect of that Rating Year; (b) that proportion of the amount by which the Base Amount exceeds the amount referred to in paragraph (a) as is the same as the proportion which the number of days from Project Completion to the end of the then current Rating Year bears to 365. (4) (a) In the 19 Rating Years following the Rating Year in which Project Completion occurs, the Municipal Rates payable shall be the amount payable in the preceding Rating Year increased by the same percentage as the annual percentage increase in the CPI during the immediately preceding Rating Year increased by the lesser of — (i) the same percentage of the annual percentage increase in the CPI during the immediately preceding Rating Year; or (ii) the percentage increase in the City’s rates for that year; assuming the Municipal Rates payable in the Rating Year in which Project Completion occurred were the Base Amount;