Instead, the firm, Avalon Bay, will provide a percentage of its Annual Gross Revenue, or AGR, which is revenue from "insurance, operating and maintenance expenses" paid by tenants, according to an ordinance that will be heard on first reading Tuesday night.
It does not say what the AGR is estimated to be, but it states the property produced $311,399.50 in property taxes in 2014 and would generate an estimated $616,094 in the first year after the project is completed in an Annual Service Charge or ASC.
Under the proposed exemption, the firm would pay 10% of the AGR for the first 15 years, with property tax payments beginning the 16th year with just 10% of the taxes paid along with an AGR percentage.
Property taxes will increase by 20% every few years under the schedule below until the 30th year.
The 235-unit project will also include only six affordable housing units, but will require the firm to provide what is described a "significant contribution" to the Township's affordable housing fund.
The portion of the ordinance detailing the tax exemption schedule is below:
The ordinance documents also include a list of what is deemed "Benefits of Project vs. Cost," also below:
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