Subject: 20481/Orchard Knob Dev.Corp./Taxes Date: Fri, 27 Jan 1995 10:32:20 -0500 RESOLUTION NO. 20481 A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE DEVELOPMENT CORPORATION OF ORCHARD KNOB, INC. PROVIDING FOR PAYMENTS IN LIEU OF TAXES FOR CERTAIN PROPERTY OWNED BY THE DEVELOPMENT CORPORATION OF ORCHARD KNOB, INC., AS DESCRIBED HEREIN. ______________________________ WHEREAS, the Development Corporation of Orchard Knob, Inc. has been certified as a not-for-profit corporation with documents duly executed in accordance with the Tennessee General Corporation Act and filed with the Secretary of State on January 3, 1995; WHEREAS, the District Director of the Internal Revenue Service, Department of the Treasury, is in the process of determining whether said corporation is exempt from Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code; and WHEREAS, Tennessee Code Annotated A767-5-207, entitled "Low Cost Housing for Elderly Persons", provides in pertinent part as follows: Property of Tennessee nonprofit corporations which is used for housing low income persons with disabilities, or low income elderly or handicapped persons, is exempt in accordance with this section. The property must be financed by a grant under A7811 or A7211 of the National Affordable Housing Act ... or be financed by a loan made, insured, or guaranteed by a branch, department or agency of the United States Government under A7515(b) or A7521 of the Housing Act of 1949 ..., A7202 of the Housing Act of 1959 ..., A7A7221, 231 or 236 of the National Housing Act ..., or A78 of the United States Housing Act of 1937, as amended by the Housing and Community Development Act of 1974 ... . The property must be used for below-cost housing for elderly or handicapped persons..., who have income not in excess of limits established for the enumerated program by the department of housing and urban development (HUD). 0C WHEREAS, the Directors and Officers of the Development Corporation of Orchard Knob, Inc. shall serve without compensation and said corporation is irrevocably dedicated to and operated exclusively for not-for-profit purposes. No part of the income or assets of said corporation will benefit any individual. In the event of dissolution of the corporation or other liquidation of its assets, the corporation's property shall not be conveyed to any individual for less than fair market value of such property. Finally, all assets remaining after payment of the corporation's debts shall be conveyed or distributed only to an organization or organizations created and operated for not-for-profit purposes similar to those of said corporation; and WHEREAS, Tennessee Code Annotated A767-5-207(a)(2) provides that such not-for-profit corporations shall agree to make payments in lieu of taxes on property used for housing for low income persons with disabilities or low income elderly or handicapped persons for any services rendered to the corporation by a county, municipality or metropolitan government; and WHEREAS, The City of Chattanooga has historically charged for services per rental unit for a project of this sort located in the City of Chattanooga; and WHEREAS, the property on which these units are to be constructed is as follows: TRACT 1: IN THE CITY OF CHATTANOOGA, HAMILTON COUNTY, TENNESSEE: BEGINNING at a point on the Northern line of East Fifth (formerly Caroline) Street, 180 feet, more or less, Eastwardly of the Eastern line of Lot One Hundred Five (105) of the East End Syndicate Addition (and being in the Western line of the one (1) acre tract marked "Mary McCutcheon" on the James Williams Partition Map in Book K, Volume 2, page 574, in the Register's Office of Hamilton County, Tennessee); thence Northwardly, along the Western line of the Williams partition, 232.5 feet, more or less, to the Southern line of the M.A. Sherman property, or its extension; thence Westwardly, along said line, 60 feet; thence Southwardly, parallel to the Western line of the Williams partition, 232.5 feet, more or less, to the Northern line of East Fifth Street; thence Eastwardly, along said street, 60 feet to the beginning, and being the Eastern 60 feet of the old E.C. Wickliffe property. EXCEPTING any part within the right of way of East Fifth Street. TRACT 2: The West Seventy-three and 9/10 (73.9) feet of the One (1) acre tract of ground in the Southwest corner of the James Williams, Fifty-eight (58) acre tract as appears of record in Book "E", Volume 3, page 144, in the Register's Office of Hamilton County, Tennessee. Said tract of ground fronts Seventy-three and 9/10 (73.9) feet on the North line of East Fifth Street and extends back Northwardly between parallel lines a distance of Two Hundred Fifteen (215) feet to a fence. EXCEPT the West Eight and 9/10 (8.9) feet of said property. TRACT 3: IN THE CITY OF CHATTANOOGA, HAMILTON COUNTY, TENNESSEE: Being the Western one-half (1/2) (65 feet) of what is described in Book 1223, page 79, in the Register's Office of Hamilton County, Tennessee, as Lot A, McCutcheon tract. Said one-half (1/2) of tract fronts 65 feet on the Northern line of East 5th Street and extends Northwardly, between parallel lines, a distance of 220 feet. TRACT 4: Lots Six (6) and Seven (7), Boyd's Subdivision of the C.L. Rogers Tract as shown by plat of record in Plat Book "E", Volume 21, page 147, Register's Office of Hamilton County, Tennessee, and more particularly described as beginning at a point on the North line of East 5th Street, at its intersection with the West line of Roberts Street (unopened) said beginning point being marked by an iron pin and said beginning point being one hundred fifty-nine and five tenths (159.5) feet West of the West line of North Hawthorne Street and being the Southeast corner of Lot Six (6); thence North 66 degrees 20 minutes 38 seconds West along the North line of E. 5th Street eighty (80) feet to the Southwest corner of Lot Seven (7); thence North 23 degrees 59 minutes 22 seconds East along the West line of Lot Seven (7), one hundred five (105) feet to the South line of an alley; thence South 66 degrees 20 minutes 30 seconds East along the South line of said alley eighty (80) feet to the West line of Roberts Street; thence south 23 degrees 59 minutes 22 seconds West along the West line of Roberts Street one hundred five (105) feet to the point of beginning and also being known as Parcel 147-8, Chattanooga Housing Authority, Orchard Knob Urban Renewal Project Tenn. $-112. TRACT 5: BEGINNING at an iron pin on the North line of E. 5th Street at the Southwest corner of Lot Eight (8) Boyd's Subdivision of the C.L. Rogers Tract, plat of which is recorded in Book "E", Volume 21, page 147, Register's Office of Hamilton County, Tennessee; thence North 66 degrees 20 minutes 38 seconds West along the North line of East 5th Street, sixty-five (65) feet; thence North 23 degrees 59 minutes 21 seconds East two hundred fifteen and five one hundredths (215.05) feet; thence South 66 degrees 13 minutes 08 seconds East one hundred ninety and seventy-four hundredths (190.74) feet; thence South 23 degrees 58 minutes 25 seconds West sixty-four and sixty-two hundredths (64.62) feet; thence North 66 degrees 20 minutes 58 seconds West seventy-eight and eighty-seven hundredths (78.87) feet; thence South 41 degrees 19 minutes 02 seconds West one hundred fifty-seven and forty-three hundredths (157.43) feet to the point of beginning and also being known as Parcel 147-6, Chattanooga Housing Authority, Orchard Knob Urban Renewal Project Tenn. R-112. WHEREAS, The City of Chattanooga, by this Resolution, agrees to enter into an agreement with the Development Corporation of Orchard Knob, Inc. upon the purchase of said property and the granting of the property tax exemption pursuant to Tennessee Code Annotated A767-5-207, setting forth the amount for services per rental unit to be paid by the corporation in lieu of taxes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE, that the Mayor be and is hereby authorized to enter into an agreement with the Development Corporation of Orchard Knob, Inc. providing that once the aforementioned property is purchased by the Development Corporation of Orchard Knob, Inc. and the tax exempt status is granted to said corporation pursuant to Tennessee Code Annotated A767-5-207, the corporation will make payments in lieu of taxes to the City of Chattanooga for services rendered by the City pursuant to T.C.A. A767-5-207(a)(2) based upon a rate per unit. ADOPTED: January 31, 1995 WSPjr.tlm