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Exhibit E 1 PAYMENT IN LIEU OF TAXES AGREEMENT This Agreement is entered into this _____ day of _______, 2016, by and between University of Northwestern–St. Paul., a Minnesota non-profit corporation (“Northwestern”), and the City of Arden Hills, Minnesota, a Minnesota statutory city (the “City”). WHEREAS, Northwestern is a university which proposes to locate a facility at 1265- 1275-1285 Grey Fox Road; Arden Hills, Minnesota, as generally depicted in Exhibit A hereto (the “Facility”); WHEREAS, Northwestern is organized and is operated solely for educational, religious, and charitable purposes; WHEREAS, the Facility is, or will be, exempt from real property taxes under Article 10, Section 1, of the Minnesota Constitution and Minnesota Statutes Section 272.02; WHEREAS, the City will provide police, fire, and other services to the Facility and construct and maintain streets, sidewalks and other improvements benefitting the Facility; and WHEREAS, Northwestern, in recognition of the services provided by the City to Northwestern, agrees to make certain payments in lieu of taxes. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree that the above recitals are incorporated into this agreement, and agree: 1. Northwestern agrees that it shall pay to the City annual payments in lieu of taxes (“PILOT”) in the amounts described in this Section, based on the formula set forth in this section: Annual Market Value of Facility x Annual State and Local Property Tax Rate x Share of Property Taxes Attributable to the City = Northwestern’s PILOT 2. Northwestern agrees to make annual payments to the City of the amounts shown in Section 1 in two equal installments on or before May 15 and October 15 each year beginning in 2017 and continuing while Northwestern owns the Facility , unless modified according to Section 3 below or unless the Facility otherwise becomes subject to ad valoreum property taxation. 3. In addition, the City and Northwestern agree that the amount subject to the calculation in Section 1 will be reduced by the amount of the City’s portion of real property taxes received from any portion of the Facility which remains or becomes subject to ad valorum taxation due to lease from Northwestern or otherwise. In addition, if Northwestern sells or otherwise transfers any of the Facility prior to termination, the City will reduce the PILOT in an amount equal to the City’s actual increase in real property tax receipts from that portion of the Facility which becomes subject to real property taxation, but in no event during the term of this Agreement will the PILOT be reduced below Nine Thousand Dollars ($9,000.00) annually