Common use of Tax Increment Clause in Contracts

Tax Increment. a. Pursuant to Sections 17C-5-202(1) and 204 of the Act and Section 00-00-000 of the Cooperation Act, the District hereby agrees and consents that the Agency shall be paid seventy (70%) of the District Tax Increment generated within the Project Area, as described herein. Of the District Tax Increment paid to the Agency, the Agency anticipates allocating up to the ten percent (10%) of such funds for housing in accordance with UCA § 17C-5-307 and retaining up to three (3%) of such funds as an administration fee. The Agency is authorized to begin collection of the District Tax Increment from a particular parcel upon written notice to the District prior to the beginning of the tax year for which the Agency desires to collect the District Tax Increment. b. Notwithstanding anything to the contrary herein, the Agency may collect one hundred percent (100%) of the District Tax Increment generated from each tax parcel within the Project Area for a period of not more than twenty (20) years. For purposes of this Agreement, the Tax Increment generated from each tax parcel includes taxes generated from and assessed against the real property and any personal property located on such parcel. If the Agency collects one hundred percent (100%) of the District Tax Increment, the Agency shall transfer to the District an annual rebate amount equal to thirty percent (30%) of the District Tax Increment received by the Agency no later than three (3) months following the Agency’s receipt thereof from the County Treasurer. The years for which the Agency collects Tax Increment from a tax parcel must be consecutive; in other words, once the Agency begins collecting Tax Increment from a tax parcel (also known as “triggering” Tax Increment collection), the Agency may not cease collection of Tax Increment from such tax parcel and later resume the collection of Tax Increment from such tax parcel even if the total number of years for which the Agency would collect Tax Increment from such tax parcel would be less than the 20-year limit set forth herein. The initial and cessation of Tax Increment collection by the Agency under this Agreement shall always be at the beginning and end, respectively, of the calendar year. c. The Agency may trigger the collection of Tax Increment for any and all tax parcel(s) in the Project Area for any tax year for which the Agency is authorized to collect Tax Increment from the Project Area under this Agreement. Collection of Tax Increment may be triggered at different times for different tax parcels, but must be triggered within five (5) years from the Effective Date of this Agreement. Therefore, this Agreement will expire twenty-five (25) years from the Effective Date hereof, which includes five (5) years to trigger the collection of Tax Increment, and up to twenty (20) years of Tax Increment collection. d. The base taxable value (as defined in UCA § 17C-1-102(8)) for each tax parcel to be used for calculating the amount of Tax Increment under this Agreement shall be the combined amount of the taxable value of real property as of January 1, 2018.

Tax Increment. a. Pursuant to Sections 17C-5-202(1) and 204 of the Act and Section 00-00-000 of the Cooperation Act, the District hereby agrees and consents that the Agency shall be paid seventy (70i) thirty-five percent (35%) of the District Tax Increment generated within the Project Area, as described herein. Of Of. The collection of the zero percent (0%) District Tax Increment paid paidis subject to the Agency, the Agency anticipates allocating allocatinga deduction of up to three percent (3%) as an administrative fee, to be retained by the Agency (the “Administrative Fee”). The Administrative Fee shall be up to the ten tenthree percent (10103%) of such funds for housing in accordance with UCA § 17C-5-307 and retaining up to three tocalculated based on the one-hundred percent (31100%) of such funds as an administration feefeeDistrict Tax Increment. The Agency is authorized to begin collection of the District Tax Increment from a particular parcel upon written notice to the District prior to the beginning of the tax year for which the Agency desires to collect the District Tax Increment., which notice has been given for the 2023 tax year. The Parties agree that the 10% housing requirement under UCA § 17C-5-307 is waived as permitted in UCA § 17C-5-307(4) and no amounts will be set aside for housing. Because of the delay in triggering the District Tax Increment from 2022 to 2023, the Parties agree that an additional up to ten percent (10%) of the District Tax Increment shall be paid annually to the Agency (after deducting the Administrative Fee) up to the aggregate amount of $175,645.09 (the “2022 True-up Payments”) that may be used by the Agency for development of the Solar Project within the Project Area. After the 2022 True-up Payments are made in full, Agency will receive thirty-five percent (35%) of the District Tax Increment after deducting the Administrative Fee for the remainder of the collection period for the Tax Increment as provided herein. The schedule attached hereto as EXHIBIT B provides the calculation of the 2022 True-up Payments and sample calculation of payments as well as the Project Area Budget in EXHIBIT A. b. Notwithstanding anything to the contrary herein, the Agency may mayshall collect one hundred percent (100%) of the District Tax Increment generated from each tax parcel with respect to the Solar Project within the Project Area for a period of not more than twenty twentynineteen (202019) yearsyears beginning with tax year 2023. The collection of the one hundred percent (100%) District Tax Increment is subject to a deduction of the Administrative Fee, to be retained by the Agency. As noted, the Administrative Fee shall be calculated based on the one hundred percent (100%) District Tax Increment. For purposes of this Agreement, the Tax Increment generated from each tax parcel includes taxes generated from and assessed against the real property and any personal property located on such parcel. IfFor the avoidance of doubt, this Agreement covers all real property included in the Project Area. If additional personal property or improvements are made within the Project Area for a project other than the Solar Project, such personal property and improvements will be addressed in a separate agreement. Where the Agency collects one hundred percent (100%) of the District Tax Increment, the Agency shall transfer to the District an annual rebate amount equal to thirty sixty-five percent (3065%) of the District Tax Increment received by the Agency after deducting (i) the Administrative Fee of three percent (3%) and (ii) the additional ten percent (10%) for the 2022 True-up Payments (which is limited to an aggregate amount of $175,645.09) no later than three (3) months following the Agency’s receipt thereof from the County Treasurer. The years for which the Agency collects Tax Increment from a tax parcel must be consecutive; in other words, once the Agency begins collecting Tax Increment from a tax parcel (also known as “triggering” Tax Increment collection), the Agency may not cease collection of Tax Increment from such tax parcel and later resume the collection of Tax Increment from such tax parcel even if the total number of years for which the Agency would collect Tax Increment from such tax parcel would be less than the 20-year limit set forth herein. The initial and cessation of Tax Increment collection by the Agency under this Agreement shall always be at the beginning and end, respectively, of the calendar year. c. The Agency may trigger the collection of Tax Increment for any and all tax parcel(s) in the Project Area for any tax year for which the Agency is authorized to collect Tax Increment from the Project Area under this Agreement. Collection of Tax Increment may be triggered at different times for different tax parcels, but must be triggered within five (5) years from the Effective Date of this Agreement. Therefore, this Agreement will expire twenty-five fivefour (252524) years from the Effective Date hereof, which includes five (5) years to trigger the collection of Tax Increment, and up to twenty twentynineteen (202019) years of Tax Increment collection. As noted, the trigger for the District Tax Increment for the Solar Project within the Project Area has occurred for tax year 2023. All actions taken by the Parties related to the Original Agreement are hereby ratified by the Parties. d. The base taxable value (as defined in UCA § 17C-1-102(8)) for each tax parcel to be used for calculating the amount of Tax Increment under this Agreement shall be the combined amount of the taxable value of real property as of January 1, 201820182020, which amount is $8,460. e. The Parties recognize that the value of centrally-assessed property is not allocated to particular parcels within a tax area, meaning that calculations of Tax Increment for individual parcels based on personal property and locally-assessed real property values may not fully reflect the Tax Increment generated by development on a particular parcel. As such, in the event that a particular parcel from which the Agency is authorized to collect Tax Increment under this Agreement is centrally assessed, or contains a significant amount of centrally-assessed property, the Agency, in cooperation with the County Assessor, shall determine a value to be used by the County Auditor for calculating the Tax Increment generated by that parcel that allows the Agency to collect Tax Increment that reasonably reflects the value of the centrally-assessed property located on that particular parcel. f. The District hereby authorizes and directs County officials and personnel to pay directly to the Agency all amounts due to the Agency under this Agreement in accordance with UCA § 17C-5-204 for the periods described herein. g. The County shall maintain records of all amounts paid to the Agency under this Agreement on a parcel-by-parcel basis.