THE COUNCIL OF THE CITY OF NEW YORK RESOLUTION NO. 2044 Title Resolution amending an action approved by the Board of Estimate on June 30, 1987 (Cal. No. 167), which authorized a partial exemption from real property taxes for the properties located at 212-226 9th Avenue (Block 747, Lot 1), 311-351 West 24th Street (Block 748, Lot 1), 250-268 9th Avenue (Block 749, Lot 1), 313 8th Avenue (Block 749, Lot 24), 270-296 9th Avenue (Block 751, Lot 1) and 305 9th Avenue (Block 752, Lot 1) in Manhattan, pursuant to Section 125(1)(a-2) of the Redevelopment Companies Law (Preconsidered L.U. No. 1153). Body By Council Member Berman WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council its request dated August 13, 2001 that the Council take the following action regarding the housing projects located at 212-226 9th Avenue (Block 747, Lot 1), 311-351 West 24th Street (Block 748, Lot 1), 250-268 9th Avenue (Block 749, Lot 1), 313 8th Avenue (Block 749, Lot 24), 270-296 9th Avenue (Block 751, Lot 1) and 305 9th Avenue (Block 752, Lot 1) in Manhattan: Approve an amendment to the resolution approved by the Board of Estimate on June 30, 1987, Cal. No. 167, ("1987 Resolution"), which authorizes a partial exemption from real property taxes for a property located at 212-226 9th Avenue (Block 747, Lot 1), 311-351 West 24th Street (Block 748, Lot 1), 250-268 9th Avenue (Block 749, Lot 1), 313 8th Avenue (Block 749, Lot 24), 270-296 9th Avenue (Block 751, Lot 1) and 305 9th Avenue (Block 752, Lot 1) in Manhattan, pursuant to Section 125(1)(a-2) of the Redevelopment Companies Law; WHEREAS, Penn South ("the Mutual Redevelopment Houses, Inc.") located in Chelsea in an area which has experienced tremendous growth in real property values in recent years. Property taxes have now increased beyond the means of the primarily low-income tenants and the maintenance of Penn South as an affordable housing resource is at stake. WHEREAS, to address this situation the State Legislature recently enacted legislation which is modeled on tax exemptions for Mitchell-Lama Cooperatives and authorizes the Council to enhance and extend Penn South's tax exemption. WHEREAS, the Council held a hearing on the Project on August 22, 2001; WHEREAS, the Council has considered the financial implications relating to the Project; RESOLVED: The Council hereby amends the Resolution by adding a new Paragraph 4 to read as follows: 4. Notwithstanding any provision herein to the contrary, and pursuant to Section 125(1)(a-2) of the Redevelopment Companies Law, the City, acting by its Council, hereby agrees to and hereby does exempt from real property taxes, other than assessments for local improvements, all of the residential portion of the Redevelopment Project, as follows: for the period commencing with the City's tax year July 1, 2001 through June 30, 2002, and continuing through the City's tax year July 1, 2021 through June 30, 2022, which is the thirty-fifth year from the date of expiration of the Housing Company's initial twenty-five (25) year tax exemption, the amount of taxes to be paid by the Housing Company shall be equal to the greater of (a) ten per centum (10%) of the annual rent or carrying charges of the Housing Company minus the utilities for the residential portion of the Redevelopment Project, or (b) Page 2 of 2 Reso. No. 2044 (Preconsidered L.U. No. 1153 ) the taxes payable by the Housing Company for the residential portion of the Redevelopment Project in the City's tax year July 1, 2000 through June 30, 2001, which is the fourteenth year of the twenty-five (25) year additional exemption period that was granted in paragraph one hereof. 2. Approve, pursuant to PHFL 114 and 125, the proposed amendatory agreement between the City of New York and the Housing Company in substantially the form submitted ("Third Amendatory Agreement"), and authorize the Mayor or any Deputy Mayor or the Commissioner of the Department of Housing Preservation and Development to execute the Third Amendatory Agreement, when approved as to form by the Corporation Counsel, and direct the City Clerk or Acting City Clerk to attest to the same and to affix the seal of the City thereto. Adopted. Office of the City Clerk, } The City of New York } ss.: I hereby certify that the foregoing is a true copy of a Resolution passed by The Council of the City of New York on August 22, 2001, on file in this office. _____________________________ City Clerk, Clerk of Council