But the school district will receive “compensation payments” equal to 25 percent of the property taxes they would have otherwise received.
The previous agreement was short on due-diligence details, requiring only “a financial stress test, development plan overview, and overall project suitability.” The new MOU says that prior to awarding tax incentives, the city must take at least nine specific steps, including a cost/benefit analysis, a study of growth projections, and estimate of the value of the tax abatement.
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The MOU still says that the city will only brief school officials on the details of its due diligence “when appropriate or allowable.”
The school board approved the new MOU by a 5-1 vote. Sheila Taylor, who opposed the original contract, also voted no on this pact. City spokeswoman Toni Bankston said Wednesday that city commission will vote on the new memorandum Aug. 29.