Loading...
HomeMy WebLinkAboutResolution - 5230 - Agreement - LHA - Payment Deferment - 07_25_1996RESOLUTION NO.5230 July 25, 1996 Item #35 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Deferment of Payment Agreement, and all related documents, between the City of Lubbock and Lubbock Housing Authority, to allow the deferment of the payments in lieu of taxes owed to the City of Lubbock for City services rendered, totaling $68,000.00 and allow the payment of said funds over a period of 3 years. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 25 ti ATTEST: ot arold it ar , Interim City Secretary APPROVED AS TO CONTENT: S Bob Cass, City Manager ALW:js/DPA-LHA.RES ccdocs/rev. July 23, 1996 RESOLUTION NO. 5230 July 25, 1996 Item #35 DEFERMENT OF PAYMENT AND AMENDMENT AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement entered into this P50 day of July, 1996, by and between the Housing Authority of the City of Lubbock, Texas, (herein called the "Local Authority's and the City of Lubbock (herein called the "Municipality"). WITNESSETH: WHEREAS, pursuant to that certain Cooperation Agreement dated August 24, 1995, by and between the Local Authority and the Municipality (hereinafter called "Prior Agreement"), the Local Authority has agreed to pay and the Municipality has agreed to accept "Payment in Lieu of Taxes" as provided in the Texas Local Government Code (hereinafter called "Payments") to be paid to the Municipality in return for services rendered; and WHEREAS, the Local Authority owes or will owe at the end of this fiscal year approximately $68,000.00 in Payments (hereinafter called "Deferred Payment"), the exact amount of which shall be ascertained at the end of this fiscal year; and WHEREAS, the Local Authority is currently unable to pay the Payment because the money is not available in its current budget; and WHEREAS, the Local Authority desires to defer the Deferred Payment for one (1) year and to pay the Deferred Payment in equal installments over a period of three years; and WHEREAS, the Municipality has found that the deferral of the Deferred Payment is in the best interest of the public; and WHEREAS, the Municipality and the Local Authority agree that the terms of the Prior Agreement should be amended to require monthly installments and of future Payments, including one payment due after an accounting has been made of the total amounts due and owing for each fiscal year, and that said payment shall correct any discrepancy between the amount paid and the amount actually due and owing: NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows. 1. The Local Authority and the Municipality hereby ratify all of the terms of the above mentioned Cooperative Agreement and hereby agree to abide by its terms as originally written and as may be modified herein. 2. Subject to the payment of the Deferred Payment, as described below, the Municipality agrees to defer the total of Deferred Payment due and owing at the end of this fiscal year for a period of one (1) year. The Deferred Payment shall be due and payable as follows: i) In two equal annual installments, each in the amount of TWENTY THREE THOUSAND AND NO/100 DOLLARS (23,000.00), being approximately one-third (1/3) of the Deferred Payment, commencing on October 31, 1997, and thereafter on the 31st day of October of the successive year, being October 31, 1998; and ii) In one (1) final installment, on October 31, 1999, the unpaid balance of the Deferred Payment. 3. Nothing in this Agreement shall be construed to affect the obligation of the Local Authority to pay the full amount of Payments due and owing for the fiscal year of 1996-1997 and each respective year. 4. The Municipality agrees to forbear any remedy available by law, including, but not limited to termination of the Cooperation Agreement, in return for the payment of the Deferred Payments, as set forth herein. 5. THAT Section 3 of the Prior Agreement is deleted in its entirety and will hereby read as follows: 3.(a) Under the constitution and statues of the State of Texas all Projects are exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. With respect to any Project, so long as either (i) such Project is owned by a public body or government agency and is used for low -rent housing purposes, or (ii) any contract between the Local Authority and the Government for loans or annual contributions, or both, in connection with such Project remains enforce and effect, or (iii) any bonds issued in connection with such Project or any moneys due to the Government in connection which such Project remain unpaid, whichever period is the longest, the Municipality agrees that it will not levy or impose any real or personal property taxes or special assessments upon such Project or upon the Local Authority with respect thereto. During such period, the Local Authority shall make annual payments (herein called "Payments in Lieu of Taxes") in lieu of such taxes and special Deferment of Payment Agreement — page 2 assessments and in payment for the Public services and facilities furnished from time to time without other cost or charge for or with respect to such Project. (b) Payment in Lieu of Taxes shall be in an amount equal to either (i) ten percent (10%) of the aggregate Shelter Rent charged by the Local Authority in respect to such Project during such fiscal year, or (ii) the amount permitted to be paid by applicable State law in effect on the date such payment made, whichever amount is the lower. Beginning with the first of the fiscal year, the Payment in Lieu of Taxes shall be paid in monthly installments on the last day of each month. Thirty days after the end of the fiscal year, an accounting shall be made of the total payments made over the fiscal year. Any discrepancy between the amount actually paid in monthly installments over the fiscal year and the amount actually due and owing, if any, shall be corrected at this time. Corrections shall be made through an adjustment payment made by the entity of which the discrepancy is in favor. (c) The Local Authority shall distribute the Payments in Lieu of Taxes among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year if the Project were not exempt from taxation bears to the total real property taxes which would have been paid to all Taxing Bodies for such year if the Project were not exempt from taxation; Provided, however, that no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the Project were not exempt from taxation. (d) Upon failure of the Local Authority to make any Payment in Lieu of Taxes, no lien against any Project or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. 6. The Local Authority and the Municipality hereby expressly agree that each are independent units of government and that the Municipality has no control, direct or indirect, and/or any other influence of any kind or nature whatsoever, over the administration, daily activities, and/or any activities of any kind or nature, of the Local Authority. 7. Upon the failure to pay any installment due and owing on the Deferred Payment, or the failure to pay when due all or any portion of the Payments, the Municipality may declare the entire unpaid balance of the Deferred Payment to be immediately due and owing, reduce any claim thereon, or upon the Payment, to judgment, and/or exercise any other remedy available by law, equity, or Agreement. Deferment of Payment Agreement — page 3 8. Nothing in this Agreement shall be construed as a waiver of the Municipality's right to full payment of the Deferred Payments. IN WITNESS WHEREOF, the Municipality and the Local Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. ATTEST: arold Willard, Interim City Secretary APPROVED AS TO CONTENT: Q,, 0, , Bob Cass, City Manager City Attorney HOUSING AUTHORITY OF THE CITY OF LUBBOCK ARNOLD MINCEY, OF THE BOARD Deferment of Payment Agreement — page 4