Basis for Abatement. All parties to this Agreement recognize and agree that the Authority is not subject to ad valorem taxation on its interest in the Project. The parties further understand and agree that the Company will be subject to ad valorem taxation on its leasehold interest in the Project (the “Leasehold Interest”). Pursuant to O.C.G.A. 36-80- 16.1(e) and the decision of the Supreme Court of Georgia in X. X.
Basis for Abatement. The parties to this Agreement understand and agree that the Authority is not subject to ad valorem taxation on its interest in either the Improvements or the Equipment to be included in the Project. The parties further understand and agree that the Company will be subject to ad valorem taxation on its leasehold interest in the Project (including the Company’s reversionary interest in the Project, the “Leasehold Interest”), subject to the exclusions and limitations set forth herein. Pursuant to the Constitution and laws of the State of Georgia, which permit the Board of Assessors to agree in advance to reasonable and non-arbitrary valuation methods, the parties (including any assignee of the Company pursuant to an assignment in accordance with the applicable provisions of the Lease) desire to agree upon an appropriate, reasonable and non-arbitrary methodology for valuation of the Company's Leasehold Interest. The Board of Assessors acknowledges and attests to its familiarity with the form of the Lease as described herein, and expressly confirms that it will discharge its official responsibility relating to the valuation of property within the County for ad valorem tax purposes (State, County and City) by appraising and valuing the fair market value of the Leasehold Interest in accordance with applicable law and based on the provisions of this Agreement. This Agreement shall be among the documents that are judicially validated in connection with the validation of the Certificates. The Authority covenants and agrees to cause its counsel to provide evidence, if requested by the Superior Court Judge during the judicial validation hearing, regarding the methodology utilized to value the Company’s Leasehold Interest in the Project. In addition, the Authority covenants and agrees that Authority’s counsel shall submit to the Superior Court a comprehensive proposed order with findings of fact and conclusions of law validating the Certificates sufficient to satisfy the requirements of O.C.G.A. § 9-11- 52(a). In order to provide the Company with sufficient information and certainty upon which it can base its decision to acquire, construct and equip the Project, the parties agree that it is important to set forth the methodology by which it is agreed that the Leasehold Interest of the Company in the Project will be valued for ad valorem property tax purposes. It is expected that expenditures with respect to the Project will be made in the County on or before December 3...
