Authorizing the Acceptance of Certain Payments in Lieu of Taxes from the United States of America

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- 2 - 1. Subject to the terms and conditions of this Agreement, and upon the express condition that that porition of the site of the Development now lying without the corporate limits of the City shall have been legally and val4y annexed to the City, the Administrator shall pay to the City annually a sum equal to 15 percent (15 %) of the total annual dwelling shelter rentals charged for occupied units in the Development, provided that the amount to be paid in lieu of taxes for any year with respect to the Development shall never exceed the amount that would have been received by the City and other taxing bodies from taxes levied upon such property if it were not exempt from taxation. The City represents that under present assessment pro- cedure in the City of South Bend, the Township Assessor of Portage Township, St. Joseph County, Indiana, is the official duly authorized by law to assess property in the City of South. Bend and whol:.ould be obliged to assess the Development if it were not exempt from taxation. For purposes of this paragraph it is agreed that the Township Assessor of Portage Township will be requested to assess the value of the Development in accordance with the fethod of assessment applied by him to all other property within said Township. It is agreed that if, hereinafter, the present procedure for assessing property in the City should be changed by law, such applicable law and procedure shall obtain with respect to any payments to be made. It is further agreed that the said Assessor shall be requested to certify to the City the amount determined by him to be the valuation of the Development for taxing purposes if the same were not tax exempt. It is further agreed that this amount, vahen so certified, shall be the amount of value to which shall be applied the tax levy made for the City and all other taxing bodies and by which it shall be determined whether or not the payments in lieu of taxes, as herein provided, exceed the amount :,:hich would have been received from taxes levied upon the Development if it were not exempt from taxation. The first such valuation shall be made upon the completion of the Development and shall be used for the purpose of determining the maximum allowable amount first to be paid in lieu of taxes, said valuation to be pro rated on a monthly basis from the date of first occupancy of any unit through and including the last day of