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HomeMy WebLinkAbout86- MSU Endowment and Alumni Foundation Memorandum of Agreement , . , MEMORANDUM OF AGREEMENT THIS AGREEMENT is entered into this 14th day of October , 1986, by and between the City of Bozeman, a municipal corporation and political subdivision of the State of Montana, with mailing address of P.O. Box 640, Bozeman, Montana 59771-0640 (hereinafter referred to as the "City") and the MSU Endowment and Alumni Foundation, a Montana corporation, with mailing address of MSU , Bozeman, Montana 59717 (hereinafter referred as to the "Foundation") . R E C I TAL S: WHEREAS, this agreement fulfills one of the conditions of the January 27, 1986 ap~roval by the City Commission of an application by the Foundation for a conditional use permit to allow a Research Technology Park on a portion of Tract C of Certificate No. 1243; and WHEREAS, the parties to this agreement desire to ensure that improvements to real property within the Advanced Technology Center Subdivision which are owned by the Foundation and leased to third parties will participate in maintaining the established property tax base of the City of Bozeman, County of Gallatin and School District No. 7' and , WHEREAS, the parties desire to agree upon a method of fixing and collecting payments in lieu of taxes applicable to those improvements. NOW, THEREFORE, IN CONSIDERATION of the mutual promises and covenants herein contained, the parties agree as follows: 1. Recitals. The above recitals are true and correct. 2. Payment in Lieu of Property Tax. The Foundation shall pay to the City annually, in lieu of property taxes, an amount determined in . accordance with the provisions of paragraph 3 hereof. Such payment shall be made for all property improve- ments within the Advanced Technology Center Subdivision owned by the Foundation and leased to third parties, except that this provision shall not apply to the following property: (a) Property which, if owned by the user, would be exempt from taxation under the laws of the State of Montana or the United States of America; (b) Property improvements which have been partially or completely destroyed and thereby rendered totally untenantable; (c) Land from which improvements have been removed; (d) Unimproved property; (e) Any property not leased to a third party. 3. Method of Calculation. The amount to be paid annually by the Foundation to the City shall be calculated by the City in the same matter as the property tax levy is calculated for all taxable property located within the City limits. The calculation shall include any property tax reductions authorized under the laws of the State of Montana. 4. Time of Payment. Payments of the amounts due shall be made at the same times as real property taxes under Montana law. S. Allocation of Payments. Upon receipt of a payment, the City shall forward the appropriate portions to the County and School District No. 7. 6. Definition of Lease. The term "lease" shall include any arrangement for the occupation, possession or use of the property improvements by any person, business association, -2- , . partnership, corporation or organization other than the Foundation. 7. Request for Reduction in Valuation, Procedure. A. No reduction in valuation of property improvements shall be made unless the Foundation files a written request with the City's Finance Director within fifteen days after receiving notice of valuation from the City. The request shall contain a description of the property and improvements involved and shall set forth the facts upon which it is made. B. Upon receiving a request, the City shall list the names of three persons who could act as an arbiter. The list shall be sent to the Foundation which shall add three more names to the list. The parties shall then strike five names from the list by alternating, one name each strike. A coin toss shall decide which party strikes the first name. The person with the final name remaining on the list shall act as the arbiter. C. The arbiter shall conduct a hearing and render a decision within three (3) weeks. D. The arbiter's decision shall be final and binding on both parties. E. Costs of abitration, excluding fees and costs associated with either party's representation at the hearing, shall be shared equally by the parties. F. After a particular improvement receives its initial evaluation, the Foundation may not request a reduction concerning that property within five years of the initial valuation or within five years of any arbitration held concerning the property. This limitation shall not apply if the valuation for the property increases more than ten percent during the period. -3- . ~ . 8. Requirements in Lease Agreements. All agreements whereby the Foundation leases property improvements within the Advanced Technology Center Subdivision will include a paragraph stipulating the obligation of the Foundation to make the payment in lieu. Said agreements shall also be filed with the Clerk and Recorder of Gallatin County within thirty days after final execution. 9. Amendments. The terms of this agreement may be modified or amended at any time by agreement in writing between the Foundation and the City. 10. Enforceability. This agreement is enforceable only by the Founda- tion and the City and does not create any enforceable rights in favor of persons or entities not parties to it. 11. Governing Law. This agreement shall be construed according to the laws of the State of Montana. 12. Invalid Provision. The invalidity or unenforceability of any provision of this agreement shall not affect the other provisions hereof, and this agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 13. No Assignment. It is expressly agreed that neither party shall assign this agreement in whole or in part without prior written consent of the other party. -4- . , . 01. . 14. Successors. Except as provided in paragraph 13, this agreement shall be binding upon, and inure to the benefit of the parties hereto and their respective successors and assigns. CITY OF BOZEMAN MONTANA STATE UNIVERSITY ENDOWMENT AND ALUMNI FOUNDATION "I ,*~ By By Its C ty Manager Its ATTEST: ATTJST: ~ . / J~ "'- ftif. J~~ lerk of City Commission -5-