Does the Development Agreement provide for the payment of property taxes, transient occupancy taxes, etc. on the Navy Broadway Complex Site?
The 1992 Development Agreement provides that the Navy Broadway Complex is federal property and is not subject to taxation. Therefore, no fees, taxes or other charges which are secured by real property may be imposed on Navy Broadway Complex. However, the Development Agreement recognizes that the Developer’s possessory interest in federal property and in certain improvements will be taxable in accordance with the Constitution of the State of California and laws enacted thereunder. This means that the city will benefit from transient occupancy taxes and sales taxes, and tax increment will flow to the Centre City Redevelopment Project Area.
