AC No. 1991-06COOPERATION AGREEMENT
THIS AGREEMENT, made this 24 day of May 1 1991. by and
between the KODIAK ISLAND HOUSING AUTHORITY (herein called the
"Authority") and the KODIAK ISLAND BOROUGH (herein called the
"Borough")
WITNESSETH:
In consideration of the mutual covenants hereinafter set forth, the
parties hereto do agree as follows:
1. Whenever used in this agreement:
(A) The term "Project" shall mean any low -rent housing
hereinafter developed or acquired by the Authority with
financial assistance of the United States of America
acting through the Secretary of Housing and Urban
Development (herein called the "Government"); excluding,
however, any low -rent housing project covered by any
contract for loans and annual contributions entered into
between the Authority and the Government, or its
predecessor agencies, prior to the date of this
Agreement:
(b) The term "Taxing Body" shall mean the State or any
political subdivision or taxing unit thereof in which a
Project is situated and which would have authority to
assess or levy real or personal property taxes or to
certify such taxes to a taxing body or public officer to
be levied for its use and benefit with respect to a
Project if it were not exempt from taxation;
(c) The term "Shelter Rent" shall mean the total of all
charges to all tenants of a Project for dwelling rents
and non -dwelling rents (excluding all other income of
such Project), less the cost to the Authority of all
dwelling and non -dwelling utilities;
2. The Authority shall endeavor to secure a contract or contracts
with the Government for loans and annual contributions
covering one or more Projects consisting of approximately
twenty (20) units. The Authority shall plan, develop or
acquire and administer the Project or Projects, which shall be
located within the corporate limits of the Borough. The
obligations of the parties hereto shall apply to each such
Project and the Borough shall have no contractual
responsibility with respect to the Project other than as
expressly provided in this Agreement.
3. (a) Under the Constitution and laws of the State of Alaska,
the Project is exempt from all real and personal property
taxes and special assessments levied or imposed on any
Taxing Body. So long as either (i) the Project is owned
by a public body or governmental agency and is used for
low rent housing purposes, or (ii) any contract between
the Authority and the Government for loans or annual
contributions, or both, in connection with such Project
remains in force and effect, or (iii) any bonds issued in
connection with such Project or any monies due to the
Government in connection with such Project remain unpaid,
whichever period is the longest, the Borough agrees that
it will not levy or impose any real or personal property
taxes or special assessment upon such Project or upon the
Authority with respect thereto. During such period, the
Authority shall make annual payments (herein called
"Payments in Lieu of Taxes") in lieu of such taxes and
special 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) Each such annual Payment in Lieu of Taxes shall be made
after the end of the fiscal year established for such
Project, and shall be in an amount equal to either (i)
ten percent (10%)* of the Shelter Rent charged by the
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
is made, whichever amount is the lower.
(c) The Borough 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 bear to the total real property taxes which
would have been paid to all of the 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
for taxation.
(d) Upon failure of the Authority to make any Payment in Lieu
of Taxes, no lien against any Project or assets of the
Authority shall attach, nor shall any interest or
penalties accrue or attach on account thereof.
4. During the period commencing with the date of the acquisition
of any part of the site or sites of any Project and continuing
so long as either (i) such Project is owned by a public body
or governmental agency and is used for low -rent housing
purposes, or (ii) between the Authority and the Government for
loans or annual contributions, or both, in connection with
*Note: A percentage of less than ten percent (10%) may be inserted
if agreed to by the Borough and the Authority.
such Project remains in force and effect, (iii) any bonds
issued in connection with such Project or any monies due to
the Government in connection with such Project remain unpaid,
whichever period is the longest, the Borough, without cost or
charge to the Authority or the tenants of such Project (other
than the Payments in Lieu of Taxes), shall:
(a) Furnish or cause to be furnished to the Authority and the
tenants of such Project public services and facilities of
the same character and to the same extent as are
furnished from time to time without cost or charge to
other dwellings and inhabitants in the Borough;
(b) Notwithstanding the date of acquisition the Borough shall
vacate such streets, roads, and alleys within the area of
such Project as may be necessary in the development
thereof, and convey without charge to the Authority, such
interest as the Borough may have in such vacated areas;
and insofar as the Borough is lawfully able to do so
without cost or expense to the Authority or to the
Borough, cause to be removed from such vacated areas,
insofar as it may be necessary, all public or private
utility lines and equipment;
(c) Insofar the Borough may lawfully do so, (i) grant such
deviation from the building code as are reasonable and
necessary to promote economy and efficiency in the
development and administration of such Project, and at
the same time, safeguard health and safety; and (ii) make
such changes in any zoning of the site and surrounding
territory of such Project as are reasonable and necessary
for the development and protection of such Project and
surrounding territory;
(d) Accept grants of easements necessary for the development
of such Project; and
(e) Cooperate with the Authority by such other lawful action
or ways as the Borough and the Authority may find
necessary in connection with the development and
administration of such Projects.
5. In respect to any Project, the Borough further agrees that
within a reasonable time after receipt of a written request
therefor from the Authority:
(a) It will accept the dedication of all interior streets,
roads, alleys, and adjacent sidewalks within the area of
such Project, together with all storm and sanitary sewer
mains in such dedicated areas, after the Authority or its
Developer has completed the grading, improvements, paving
and installation thereof, in accordance with
specifications acceptable to the Borough;
(b) It will accept necessary dedications of land for, and
will grade, improve, pave, and provide sidewalks for, all
streets bounding such Project or necessary to provide
adequate access thereto (in consideration whereof the
Authority or its Developer shall pay to the Borough such
amounts as would be assessed against the Project site for
such work if such site were privately owned); and
(c) It will provide, or cause to be provided, water mains and
storm and sanitary sewer mains, leading to such Project
and serving the bounding streets thereof (in
consideration whereof the Authority or its Developer
shall pay to the City such amounts as would be assessed
against the Project site for such work if such site were
privately owned).
6. If by reason of the Borough's failure or refusal to furnish or
cause to be furnished any public services or facilities which
it has agreed hereunder to furnish or cause to be furnished to
the Authority or to the tenants of any Project, the Authority
incurs any expense to obtain such services or facilities, then
the Authority may deduct the amount of such expenses from any
Payment in Lieu of Taxes due or to become due to the Borough
in respect to any Project or any other low -rent housing
projects owned or operated by the Authority.
7. The Borough agrees to exempt the tenants of the Project and
the Authority from the payment of Sales Taxes in conjunction
with rents.
8. No Cooperation Agreement heretofore entered into between the
Borough and the Authority shall be construed to apply to any
project covered by this Agreement.
9. No member of the governing body of the Borough or any other
public official of the Borough who exercises any
responsibilities or functions with respect to any Project
during his tenure or for one (1) year thereafter shall have
any interest, direct or indirect, in any project or any
property included or planned to be included in any Project, or
any contracts in connection with such Projects or property.
If any such governing body member or such other public
official of the Borough involuntarily acquires or had acquired
prior to the beginning of his tenure any such interest, he
shall immediately disclose such interest to the Authority.
10. So long as any contract between the Authority and the
Government for loans (including preliminary loans) or annual
contributions, or both, in connection with any Project remains
in force and effect, or so long as any bonds issued in
connection with any project, or any monies due the Government
in connection with any Project remain unpaid, this Agreement
shall not be abrogated, changed, or modified with the consent
of the Government. The privileges and obligations of the
Borough hereunder shall remain in full force and effect with
respect to each Project so long as the beneficial title to
such Project is held by the Authority or by any other public
body or governmental agency, including the Government,
authorized by law to engage in the development or
administration of low -rent housing projects. If at any time,
the beneficial title to, or possession of, any Project is held
by such other public body or governmental agency, including
the Government, the provision hereto shall inure to the
benefit of and may be enforced by, such other public body or
governmental agency, including the Government.
IN WITNESS WHEREOF, the Borough and the Authority have respectively
signed this Agreement and cause their seals to be affixed and
attested as of the day and year first above written.
KODIAK ISLAND BOROUGH
By:
Je me M. Selby, M
ATTEST:
Borough Clerk
KODIAK ISLAND HOUSING AUTHORITY
ATTEST:
" Z' , ""- , / Z,//" �W' //
Secretary-Tre surer 411/