FAIRBANKS - The Fairbanks City Council has approved a tax deal with a Fort Wainwright housing contractor to pay the city $475,000 annually for the next 50 years.
The Fairbanks Daily News-Miner reported the council unanimously approved an ordinance Monday after two years of negotiations with North Haven Communities.
The company had disputed paying property taxes for city services it said were provided by the military post.
The Fairbanks North Star Borough previously agreed to a similar payment in lieu of taxes. The payment is about 52 percent of the potential borough taxes on the property.
In the city's agreement, North Haven will pay about 66 percent of the taxes it would owe based on the taxable value of the housing.