Determination of the Annual Amounts of the UCH-TIF Exemption

(1) Amount of the Exemption. The annual amount of the UCH-TIF Exemption to be given to an Owner of a parcel of real property in an UCH-TIF Zone shall be annually determined during the term of the exemption by computing the tentative real estate tax on the Increment under the then current real estate tax rate and by applying the Exemption Percentage to such tentative tax. (2) The Exemption Percentage. The Exemption Percentage shall be a percentage between one and 100% inclusive, negotiated by the municipality and each Owner, and shall be specified in each UCH-TIF Agreement. The Exemption Percentage need not be the same for all Owners and may change from year to year during the term of the UCH-TIF Exemption. The Exemption Percentage shall be calculated to provide a reasonable amount of total real estate tax exemption in consideration of completion of agreed improvements and fulfillment of other commitments as provided in UCH-TIF Agreements. (3) Term of Exemption. The term of years for which an UCH-TIF Exemption shall be available to an Owner shall not exceed 20 years and shall be specified in the UCH-TIF Agreement. The terms of UCH-TIF Exemptions need not be the same for all Owners, but each term, when considered in conjunction with the Exemption Percentage(s), shall reflect a determination of reasonable amounts of real estate tax exemption in consideration of completion of agreed improvements. (4) Adjustments to Base Value. The Base Value shall not reflect the improvements constructed pursuant to the UCH-TIF Agreement. The Base Value shall be adjusted by the Inflation Factors for subsequent fiscal years. The annual adjustments by the Inflation Factors shall be cumulative; the adjusted Base Value which has been computed for any particular fiscal year, shall be further adjusted by use of the Inflation Factor in order to compute adjusted Base Value for the succeeding fiscal year.