36-26 Ordinance Authorizing Payments in Lieu of Taxes for Beacon Apartments Preservation, LLC (Substitute)

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Owner of an Annual In Lieu of Amount bill from the Controller of the City, the Owner shall remit its semi-annual PILOT to the City at the Office of the Controller on or before each installment due date. Subject to Section 2.4,the aggregate annual amount of each year's semi-annual PILOT shall not exceed the Annual in Lieu of Amount. Section 2.3. The obligation of the Owner to pay the Annual In Lieu of Amounts shall be subordinate to the obligations of the Owner with respect to the Owner's obligation to make debt service payments on any financing which may now or in the future be secured by a mortgage on the Property. The City agrees to execute whatever documents any lender to the Owner now or in the future may require which are commercially reasonable in order to confirm the foregoing subordination. Section 2.4. The City shall have the right to enforce the payment of all PILOTs when due, including all penalties, costs, and expenses imposed under Indiana Code § 6-1.1-22-1, et. seq., and Indiana Code§6-1.1-37-1,et seq. or any statute which amends or replaces them for delinquent PILOTs, in the same manner as the City enforces the obligations of non-exempt taxpayers. Section 2.5. The Owner shall ensure that all steps are taken within its control to obtain and maintain the property tax exemption of the Property under Indiana Code § 6-1.1-10-16.7 during the term of this Agreement. If the Property ceases to be subject to exemption under Indiana Code§ 6-1.1-10-16.7,the Property shall be subject to the payment of property taxes under Indiana law. The Owner's continued legal obligation to pay the PILOTs is conditioned upon the continued property tax exemption of the Property. Section 3 Term. Section 3.1. Except as otherwise provided in Section 4, the PILOT Agreement and applicable PILOTs required hereunder shall continue for a period of thirty (30) years beginning with the initial year that a PILOT is made by the Owner to the City(the"Initial Term").The Initial Term may be extended by a mutual, written agreement of the Parties. Section 4. Termination. Section 4.1. City or Owner may terminate this PILOT Agreement at any time upon a material breach of this PILOT Agreement or failure to perform any term of this PILOT Agreement by the other, unless such material breach or failure is cured within thirty (30) days after written notice is given to the party in material breach;provided,however,that if any such claimed material breach or failure is of a nature that it cannot be cured within thirty (30) days, a non-breaching party shall not have the right to terminate this PILOT Agreement as long as the party in material breach is diligently pursuing appropriate action to cure the material breach or failure within a total of forty-five (45) days if such action was commenced within thirty (30) days after the giving of notice of the material breach or failure. 4