Title
Request for PILOT agreement by Related Affordable for renovations to Avon Towers, 435 S. Livernois
Body
Whereas, Related Affordable has a purchase option to acquire Avon Towers, located at 435 S. Livernois, further identified as parcel number 70-15-15-101-022,
Whereas, Related Affordable is proposing to finance the redevelopment with new tax-exempt bonds issued by Michigan State Housing Development Authority and equity from the sale of 4% Low Income Housing Tax Credits,
Whereas, Related Affordable is requesting a Payment in Lieu of Taxes (PILOT) of 6% for a period of 30 years, and
Whereas, the City has adopted a Code of Ordinances, Community Development, Article II, Tax Exempt Housing to provide for PILOT agreements for eligible affordable housing facilities:
Resolved, that City Council authorizes the City Attorney to draft an Ordinance establishing the provisions of a PILOT to include an In Lieu of Tax Fee of 6.75% of annual shelter rents and should Avon Towers fail to achieve 100% low-income tenancy for any given tax year, an additional service charge for that portion of the housing development occupied by other than low-income persons or families. The service charge paid shall be equal to the full amount of the taxes that would be paid on that portion of the development if the development were not tax exempt.
Be it Further Resolved, that City Council authorizes the City Attorney to draft an Ordinance establishing the provisions of a PILOT between the City and Avon Towers after receipt of certification by MSHDA identifying the facility as tax exempt under its programs.