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NO. 157. AN ACT RELATING TO THE APPROVAL OF A TAX STABILIZATION AGREEMENT.

(H.723)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. TAX STABILIZATION AGREEMENT; HARTFORD; APPROVAL

(a) The General Assembly hereby approves the tax stabilization agreement between the town of Hartford and Sandsland Holdings, Ltd. (SLH), approved by the Hartford selectboard on September 23, 1997, as set forth in subsection (b) of this section. This approval shall constitute approval of the agreement for the purposes of affecting the education grand list of the municipality under 32 V.S.A. § 5404a(a) and (b) for the term of the agreement.

(b) The tax stabilization agreement hereby approved between the town of Hartford and Sandsland Holdings, Ltd. relates to the construction of a new warehouse-distribution center in the town of Hartford for King Arthur Flour Company, and provides that:

(1) The town and Sandsland Holdings, Ltd. agree to stabilize the tax for the property and warehouse structure on Lot #09-022-000 for a five-year period, to be paid by SLH to the town of Hartford for the years 1998 through 2002 as follows:

(A) Year 1 - 50 percent of the grand list total property value as of April 1, 1998.

(B) Year 2 - 60 percent of the grand list total property value as of April 1, 1999.

(C) Year 3 - 70 percent of the grand list total property value as of April 1, 2000.

(D) Year 4 - 80 percent of the grand list total property value as of April 1, 2001.

(E) Year 5 - 90 percent of the grand list total property value as of April 1, 2002.

(2) The valuation of the property on April 1, 1998 is determined as follows:  Phase I of the new warehouse building is anticipated to be completed January 1998. The value of this structure will not be added to the total value of the property for tax purposes until the new grand list is adopted on April 1, 1998. Since the reappraisal at full market value will not take effect until April 1, 1999, the building valuation on April 1, 1998 will be approximately 78 percent of the final construction cost. The current land value of $249,600.00 will stay the same.

(3) Lands acquired or buildings erected after January 1998 and added to theBillings Farm Commerce Park warehouse project are not part of this agreement, and shall be subject to separate, but similar five-year tax stabilization plans (50, 60, 70, 80 and 90 percent) for the added value.

(4) If the Sands, Taylor and Wood Company/King Arthur Flour Company cease to occupy the subject property and warehouse during the five-year tax stabilization period, this agreement shall be terminated immediately upon nonoccupancy, and the tax stabilization shall be prorated for the period of the year in which the building was occupied.

(5) Real estate tax payment shall be due and payable in February and August of each year, and must be made in a timely manner, otherwise this agreement shall be null and void and of no force and effect.

Sec. 2. TAX STABILIZATION AGREEMENT; BRATTLEBORO; APPROVAL

(a) The General Assembly hereby approves the tax stabilization agreement between the town of Brattleboro and Northeast Cooperatives approved by the Brattleboro selectboard on March 20, 1998 as set forth in subsection (b) of this section. This approval shall constitute approval of the agreement for the purposes of affecting the education grand list of the municipality under 32 V.S.A. § 5404a(a) and (b) for the term of the agreement.

(b) The tax stabilization agreement hereby approved between the town of Brattleboro and Northeast Cooperatives relates to the construction of a new warehouse/distribution center in the town of Brattleboro for Northeast Cooperatives, and provides that:

(1) The town and Northeast Cooperatives agree to stabilize the tax for the property and warehouse structure for a seven-year period to be paid by Northeast Cooperatives to the town of Brattleboro for the years 1999 through 2005 as follows:

(A) Year 1 - 50 percent of the grand list total property value as of April 1, 1999.

(B) Year 2 - 50 percent of the grand list total property value as of April 1, 2000.

(C) Year 3 - 50 percent of the grand list total property value as of April 1, 2001.

(D) Year 4 - 60 percent of the grand list total property value as of April 1, 2002.

(E) Year 5 - 65 percent of the grand list total property value as of April 1, 2003.

(F) Year 6 - 85 percent of the grand list total property value as of April 1, 2004.

(G) Year 7 - 90 percent of the grand list total property value as of April 1, 2005.

(2) Lands acquired or buildings erected after January 1, 2000 and added to thiswarehouse/distribution project are not part of this agreement and shall be subject to separate, but similar seven-year stabilization plans for the added value, provided they occur on or before January 1, 2009.

(3) If Northeast Cooperatives ceases to occupy the subject property and warehouse during the seven-year tax stabilization period, this agreement shall be terminated immediately upon nonoccupancy, and the tax stabilization shall be prorated for the period of the year in which the building was occupied.

(4) Real estate tax payment shall be due and payable in February and August of each year, and must be made in a timely manner, otherwise this agreement shall be null and void and of no force and effect.

Sec. 3. TAX STABILIZATION AGREEMENT; HARTLAND; APPROVAL

(a) The General Assembly hereby approves the tax stabilization agreement between the town of Hartland and Ottauquechee Hydro Company, Inc. (Ottauquechee Hydro), approved by the Hartland selectboard on December 1, 1997, as set forth in subsection (b) of this section. This approval shall constitute approval of the agreement for the purposes of affecting the education grand list of the municipality under the provisions of 32 V.S.A. § 5404a(a) and (b) for the term of the agreement.

(b) Terms of the tax stabilization agreement between the town of Hartland and Ottauquechee Hydro provide that:

(1) Ottauquechee Hydro shall pay as taxes to the town of Hartland 6.25 percent of gross revenues of Ottauquechee Hydro.

(2) Taxes shall be paid monthly on the 15th day of the month, based on the gross revenues of the preceding month. If Ottauquechee Hydro fails to pay on the due date, it shall be subject to the penalties and interest charges then in effect in the town of Hartland.

(3) Ottauquechee Hydro shall allow the town of Hartland access to books and records and the right to conduct an audit of such books, if desired, as may reasonably be necessary to verify gross revenue figures.

(4) The term of the stabilization agreement shall be from April 1, 1998 to March 31, 2008.

(5) This agreement shall enure to, and be binding on, the successors and assigns ofOttauquechee Hydro.

Approved: April 29, 1998