Common use of Payments in Lieu of Taxes on Replacement Property Clause in Contracts

Payments in Lieu of Taxes on Replacement Property. If the Sponsor elects to replace any Removed Components (as defined below) and to substitute such Removed Components with Replacement Property as a part of the Project, then, pursuant and subject to Section 12-44-60 of the Act, the Sponsor shall make statutory payments in lieu of ad valorem taxes with regard to such Replacement Property as follows (subject in all events to the applicable provisions of the Act): (a) to the extent that the income tax basis of the Replacement Property (the “Replacement Value”) is less than or equal to the original income tax basis of the Removed Components (the “Original Value”) the amount of the payments in lieu of taxes to be made by the Sponsor with respect to such Replacement Property shall be calculated in accordance with Section 4.2 hereof; provided, however, in making such calculations, the original cost to be used in Step 1 of Section 4.2 shall be equal to the lesser of (x) the Replacement Value and (y) the Original Value, and the number of annual payments to be made with respect to the Replacement Property shall be equal to thirty (30) (or, if greater, the maximum number of years for which the annual fee payments are available to the Sponsor for each portion of the Project under the Act, as amended) minus the number of annual payments which have been made with respect to the oldest Removed Components disposed of in the same property tax year as the Replacement Property is placed in service; and (b) to the extent that the Replacement Value exceeds the Original Value of the Removed Components (the “Excess Value”), the payments in lieu of taxes to be made by the Sponsor with respect to the Excess Value shall be equal to the payment that would be due if the property were not Economic Development Property.

Payments in Lieu of Taxes on Replacement Property. If the Sponsor Company elects to replace any Removed Components (as defined below) and to substitute such Removed Components with Replacement Property as a part of the Project, then, pursuant and subject to Section 12-44-60 of the ActAct or any successor provision, the Sponsor Company shall make statutory payments in lieu of ad valorem taxes with regard to such Replacement Property as follows (subject but in all events subject to the applicable provisions of the Act): (ai) to the extent that the income tax basis of the Replacement Property (the “"Replacement Value”") is less than or equal to the original income tax basis of the Removed Components (the “"Original Value”") the amount of the payments in lieu of taxes to be made by the Sponsor Company with respect to such Replacement Property shall be calculated in accordance with Section 4.2 4.1 hereof; provided, however, in making such calculations, the original cost to be used in Step 1 of Section 4.2 4.1 shall be equal to the lesser of (x) the Replacement Value and (y) the Original Value, and the number of annual payments to be made with respect to the Replacement Property shall be equal to thirty twenty (3020) (or, if greater, pursuant to subsequent written agreement with the County, the maximum number of years for which the annual fee payments are available to the Sponsor Company for each portion of the Project under the Act, as amended) minus the number of annual payments which have been made with respect to the oldest Removed Components; and provided, further, however, that in the event a varying number of annual payments have been made with respect to such Removed Components disposed as a result of in such Removed Components being included within more than one Phase of the same property tax year as Project, then the Replacement Property is placed in servicenumber of annual payments which shall be deemed to have been made shall be the greater of such number of annual payments; and (bii) to the extent that the Replacement Value exceeds the Original Value of the Removed Components (the “"Excess Value”"), the payments in lieu of taxes to be made by the Sponsor Company with respect to the Excess Value shall be equal to the payment that would be due if the property were not Economic Development Property.

Payments in Lieu of Taxes on Replacement Property. If the Sponsor Company elects to replace any Removed Components (as defined below) and to substitute such Removed Components with Replacement Property as a part of the Project, then, pursuant and subject to Section 12-44-60 of the ActAct or any successor provision, the Sponsor Company shall make statutory payments in lieu of ad valorem taxes with regard to such Replacement Property as follows (subject in all events to the applicable provisions of the Act):follows: (ai) to the extent that the income tax basis of the Replacement Property (the “"Replacement Value”") is less than or equal to the original income tax basis of the Removed Components (the “"Original Value”") the amount of the payments in lieu of taxes to be made by the Sponsor Company with respect to such Replacement Property shall be calculated in accordance with Section 4.2 4.1 hereof; provided, however, in making such calculations, the original cost to be used in Step 1 of Section 4.2 4.1 shall be equal to the lesser of (x) the Replacement Value and (y) the Original Value, and the number of annual payments to be made with respect to the Replacement Property shall be equal to thirty twenty (3020) (or, if greater, pursuant to subsequent written agreement with the County, the maximum number of years for which the annual fee payments are available to the Sponsor Company for each portion of the Project under the Act, as amended) minus the number of annual payments which have been made with respect to the oldest Removed Components; and provided, further, however, that in the event a varying number of annual payments have been made with respect to such Removed Components disposed as a result of in such Removed Components being included within more than one Phase of the same property tax year as Project, then the Replacement Property is placed in servicenumber of annual payments which shall be deemed to have been made shall be the greater of such number of annual payments; and (bii) to the extent that the Replacement Value exceeds the Original Value of the Removed Components (the “"Excess Value”"), the payments in lieu of taxes to be made by the Sponsor Company with respect to the Excess Value shall be equal to the payment that would be due if the property were not Economic Development Property.