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HomeMy WebLinkAboutWI Housing Preservation Corp ~ '¡'\ ~. COOPERATION AGREEMENT This Agreement is entered into this 14th day of March, 2005, by and between Wisconsin Housing Preservation Corp., ("WHPC") and the City of Oshkosh (the "City"). In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. DEFINITIONS a. The term "Proj ect," defined as Camelot Court Apartments, shall mean the properties located at 515-45 Camelot Court more specifically described in Exhibit A, attached hereto. b. The term "Taxing Body" shall mean the State of Wisconsin (the "State") or any political subdivision or taxing unit thereof in which the Project is situated and which would have the authority to assess or levy real or personal property taxes or to certify such taxers to a taxing body or public officer to be levied for its use and benefit with respect to the Project if it were not exempt from taxation. 2. EFFECTIVE DATE WHPC covenants and agrees that it will rent or lease the dwelling units within the Project to persons oflow and moderate income. This Agreement is effective as of January 1, 2004. 3. AGREEMENT TO MAKE PILOT The City and WHPC recognize the exemption ofWHPC and the Project from all real and personal property tax under the Constitution and Statutes of the State. However, WHPC has agreed to make a Payment in Lieu of Taxes ("PILOT") to the City. 4. CITY SERVICES The City agrees to furnish governmental services and benefits to WHPC and the Project of the same type and to the same extent as are furnished from time to time, without cost or charge (except by means of property tax), to commercial, multi-unit residential dwellings and inhabitants of the City. WHPC understands that it may be subject to special assessments or special charges charged by the City in the same manner that such special assessments and special charges are charged for similar services and or undertakings to commercial, multi-unit residential dwellings in the City. 5. PILOT PAYMENTS a. PILOT Amount. In recognition of those services and benefits covered in this Agreement, WHPC agrees to pay the City an annual PILOT for the Project for each calendar Þ \ year during which WHPC owns the Project. Subject to adjustment as provided herein, for each of the tax years beginning in 2004 and going forward, the PILOT shall be $6,880.00. WHPC and the City agree that the foregoing PILOT amount is based upon 2004 Project rents. In the event the Project rents increase or decrease during any subsequent year, either party may elect to adjust the PILOT amount by providing written notice to the other party. The PILOT amount shall be adjusted by the following formula: PILOT amount times one-half of the increase or decrease in Project rents (e.g. if Project rents increase by 6%, the new PILOT amount would be [$6,880 x 3%] + $6,880 = $7,086.40). b. Pavment Due Date. PILOT payments hereunder shall be due and payable (i) in full on or before January 31 of the year following the tax year for which the PILOT was calculated, or (ii) if WHPC elects to pay in installments, according to the following schedule: one-half of the PILOT by March 31, and the remaining one-half by June 30, where March and June are in the year following the year for which the PILOT was calculated then WHPC shall be deemed to have elected to pay the PILOT in installments by making payments according to the schedule hereunder. c. Use of Pavment. The City may use and expend PILOT payments hereunder in such manner and for such purposes, as the City desires. d. Voluntary PILOTs: Waiver. WHPC is bound to make the PILOT payments required hereunder only to the extent that monies are obtainable from HUD for such purposes. WHPC has a good faith duty to take affirmative steps to satisfy its PILOT obligations hereunder by making timely and adequate requests to BUD to fund the PILOT. If, despite WHPC's good faith efforts, WHPC is not able to obtain funding from BUD to pay all of a particular PILOT, WHPC shall endeavor to obtain funding from HUD to make partial payments of the PILOT to the extent reasonably possible. No lien shall attach to the Project in the event of non-payment or partial payment. If WHPC meets its good faith duties under the terms of this Agreement, the City shall not take and hereby waives any enforcement of collection action against WHPC. WHPC hereby waives its right to bring any action, based solely on this Agreement, against the City for any City breach hereunder, it being the intent of the parties that this Agreement not confer upon WHPC special rights not otherwise available to citizens or the public. 6. TERM This Agreement shall terminate on the day before the respective January 1 st of the year during which any of the following events occurs: a. The City determines that the Project no longer legally qualifies for property tax exemption. b. Enactment by the State of a mandatory payment for municipal services by owners of property exempt from the general property tax or similarly situated owners of exempt property. \ .; c. Repeal by the State of the property tax exemption for the Project and other similarly situated property. d. Upon a determination by WHPC that continuation of the Agreement is not in the best interests of WHPC and after 30 days written notice to the City of such determination. 7. INSPECTION AND DOCUMENTS WHPC agrees to cooperate with the City (including, but not limited to, the City Assessor's Office, the City Attorney's Office, and the City Finance Department) with respect to this Agreement by allowing inspections of the Property, upon reasonable written requires of the City, and of such documents that WHPC and City may reasonably agree are relevant to an exemption determination. 8. AMEND MENT The City and WHPC expressly reserve the right to modify and amend this Agreement from time to time as they shall mutually agree in writing executed by the parties. 9. SEVERABILITY; GOVERNING LAW If any provision hereof is held by a court of competent jurisdiction to be invalid, the remainder of this Agreement and/or the application of this Agreement to any other circumstance, shall not be affected thereby. The parties intend that the laws of the State shall be the governing laws with respect to this Agreement. 10. AUTHORITY WHPC represents and warrants to the City that its officers executing this Agreement have been duly authorized to so execute and to cause WHPC to enter this Agreement. The City represents and warrants to WHPC that the undersigned City officials are duly authorized to execute and to enter into this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by duly authorized officers as of the date and year first written above. OWNER: c_~ll'(-- WISCONSIN HO /'7ø/" " ~ / ." By: / . RP. , ~ .. CITY: CITY OF OSHKOSH ~ - - -,.. APPROVED /