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CONFIDENTIAL ATTORNEVfCLIENT PRIVILEGED COMMUNICATION- NOT TO BE DISCLOSED Kurt Ulrich - Executive Director Economic Development Authority June 10, 2005 Page 5 3. Purchase, Termination or Relocation ofBitlboard Leaseholds [See Note below). a. Retained Billboards. In order to minimize the economic impact of the relocation of the billboards on the EDA, Medtronic has agreed to allow two (2) billboards (#1 and #6) to remain on site. Clear Channel has requested new leases for these signs that extend for a thirty (30) year tenn. They will pay the City $10,000 annually for each sign in years 1- 10, $15,000 for each sign in years 11-20 and $20,000 for each sign in years 21-30. b. Relocation of Billboards. The CitylEDA will use best efforts to relocate the remaining four (4) billboards (#2, #3, #4 and #5). The CityfEDA has up to two (2) years (and signs will be relocated as needed to accommodate construction) from the date of closing on the land to relocate the billboards to site locations within the City approved by the CitylEDA. Clear Channel will be required to pay the CityfEDA prorated rent for the time any billboard to be relocated remains on site. Medtronic will work with the CitylEDA in obtaining necessary variances required from MNDOT for any signs that are to be located on their property. Proposed locations are the fonner Sysco land CIllTently owned by the City (the City would receive the same lease tenn and compensation stated for the two signs above); and two other locations within the City (since the potential sites are privately owned, the sites will be identified to the EDA on Monday, but are still subject to negotiation). The City is required to approve these sites or other alternative sites deemed acceptable by both the City and Clear Channel. c. Cost of Relocation. The City will be required to pay Clear Channel $202,500 for relocation of the four (4) billboards, for a total of $810,000. It should be noted that this amount is estimated at this time, and Clear Channel will only be compensated for actual costs to relocate and construct the billboards. The EDA will pay the first $550,000 ofthis cost (this is a TIF eligible cost and may be paid from increment generated from this district or other available TIF funds) and Medtronic will pay the remaining amonnt, up to $260,000. d. Condemnation. If the CityfEDA are unable to negotiate acquisition, tennination or relocation of the billboards, Medtronic may ask the City to exercise its power of eminent domain. The CityfEDA's obligation to use eminent domain is contingent upon Medtronic agreeing to purchase and redevelop the property; Medtronic entering into an agreement to reimburse the CityfEDA for all costs including legal fees and expenses associated with the acquisition of two (2) of the billboards; Medtronic having agreed to reimburse the CityfEDA for any claims for relocation services or benefits; and Medtronic having executed all agreements required by the Development Agreement. Medtronic agrees to pay costs associated with acquisition of two (2) billboards if the City has approved relocation sites acceptable to Clear Channel, but they decide not to relocate. If it is necessary to acquire more than two (2) billboards, the City will be required to pay these costs. SJR-263965v1 MU205-30