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become due, all utility and other charges incurred in the <br /> operation, maintenance, use, occupancy and upkeep of the Premises <br /> and all assessments and charges lawfully made by any governmental <br /> body for public improvements that may be secured by Lien on the <br /> Premises; provided that with respect to special assessments or <br /> other governmental charges that may be lawfully paid in <br /> installments over a period of years, Tenant shall be obligated to <br /> pay only such installments as are required to be paid during the <br /> Term. <br /> At the commencement of this Lease the Premises will be owned <br /> by Landlord and will thereafter, on January 1, 1998, be exempt <br /> from ad valorem property taxes as provided in Article V, Section <br /> 2 (3 ) of the North Carolina Constitution and North Carolina <br /> General Statutes § 105-278 .1 . During the Term, Tenant agrees to <br /> make payments to Landlord and to any municipality in which the <br /> Premises is located, in lieu of taxes, in amounts equivalent to <br /> the amount of property tax that would be lawfully assessed if the <br /> Premises were taxable by Landlord and any municipality in which <br /> the Premises is located. This agreement to make payments in lieu <br /> of taxes in amounts equivalent to the amount of property tax that <br /> would otherwise be lawfully assessed is to eliminate the <br /> competitive advantage accruing to Tenant, a profit-making <br /> enterprise, from the use for profit of Landlord' s tax exempt <br /> property. Payments in lieu of ad valorem taxes as provided <br /> herein shall be made to Landlord and to any municipality in which <br /> the Premises is located on or before December 31, 1998 and <br /> December 31 of each year thereafter during the Term. Tenant <br /> agrees that the valuation of the Premises shall be made by <br /> Landlord' s Tax Assessor according to the Schedule of Values <br /> adopted by Landlord from time to time and that the determination <br /> of the true value in money of the Premises shall be made by <br /> Landlord' s Tax Assessor. <br /> Tenant may, at its expense, in good faith, contest any such <br /> taxes, assessments and other similar charges or the valuation on <br /> which the same are based, and, in the event of any such contest, <br /> may pay the taxes, assessments or other charges under protest <br /> during the period of such contest and any appeal therefrom. In <br /> the event it is determined by Tenant and Landlord or by the <br /> tribunal which ordinarily has jurisdiction that such tribunal <br /> does not have jurisdiction or is otherwise not permitted to act <br /> as a forum in consequence of the fact that Tenant ' s liability for <br /> the tax is contractual rather than imposed by law, then either <br /> party may submit a challenge to a tax, assessment or other <br /> similar charge or valuation to arbitration by an arbitration <br /> panel made up of MAI qualified/certified appraisers . Landlord <br /> shall select one appraiser; Tenant shall select one appraiser; <br /> the appraiser selected by Landlord and Tenant shall select a <br /> third appraiser and the decision of the arbitration panel shall <br /> be binding on both parties . To the extent that enforcement of <br /> the payment of any such taxes, assessments and other charges in <br /> the event of any contest are legally stayed during the period of <br /> such contest, such taxes, assessments and other charges may <br /> 8 <br />