|This proposed ordinance authorizes a Payment in Lieu of Taxes Agreement with Angel Brothers Property LLC, and Angel Brothers Enterprises, LTD.
Such entities owns property within Chambers County Improvement District No. 3, which is subject to Declaration of Covenants, Conditions and Restrictions for Bay 10 Business Park (the "Declarations"). The Declarations require that property owners enter into an agreement with the City for payments in lieu of ad valorem taxes in a form provided by the City. Such an agreement is a condition to any construction of improvements on the owners property.
The proposed agreement is similar to the City's new company Industrial District Agreement. The formula as specified in the Payment in Lieu of Taxes ("PILOT") Agreement is as follows:
Base Value PILOT Payment = $30,000,000 x City's property tax rate/$100 valuation x .66
Added Value PILOT Payment = Added Value x City's property tax rate/$100 valuation x the Added Value PILOT Payment Rate
The Added Pilot Payment Rate is as follows:
||ADDED VALUE PILOT PAYMENT
The City has a lien on the property and may enforce such lien or seek judicial relief as appropriate to enforce the obligations of the agreement.