Common use of Estimated Added Value Requirement Clause in Contracts

Estimated Added Value Requirement. In the event that upon completion of the Construction Phase the Added Value of permanent Improvements, as determined by said Appraisal District, shall at any time thereafter during the period of Abatement be less than eight-five percent (85%) of the Estimated Added Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes hereunder, an amount equal to the then current tax rate of the Governmental Unit applied to the difference between the Added Value from eighty-five percent (85%) of the Estimated Added Value, multiplied by 100% minus the net percentage of Abatement provided under this Agreement. For the purposes of this provision, the term “circumstances beyond the control of Owner” shall include casualty losses, national economic factors, shutdowns due to governmental regulations, strikes, acts of war, force majeure and the like. The formula for calculating such additional tax is outlined as follows: [Tax Rate] x [(85% of Est. Added Value - Actual AV) x (100% - Abatement%)] = Additional Tax

Estimated Added Value Requirement. In the event that upon completion of the Construction Phase the Added Value of permanent Improvementsimprovements, as determined by said Appraisal District, shall at any time thereafter during the period of Abatement be less than eight-five percent (85%) of the Estimated Added Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes hereunder, an amount equal to the then current tax rate of the Governmental Unit applied to the difference between the Added Value from eighty-five percent (85%) of the Estimated Added Value, multiplied by 100% minus the net percentage of Abatement provided under this Agreement. For the purposes of this provision, the term “circumstances beyond the control of Owner” shall include casualty losses, national economic factors, shutdowns due to governmental regulations, strikes, acts of war, force majeure and the like. The formula for calculating such additional tax is outlined as follows: [Tax Rate] x [(85% of Est. Added Value - Actual AV) x (100% - Abatement%)] = Additional Tax