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CONFIDENTIAL ATTORNEY/CLIENT PRIVILEGED COMMUNICATION - NOT TO BE DISCLOSED Kmt Ulrich - Executive Director Economic Development Anthority June 10,2005 Page 7 5. Administrative Expenses a. Pavment of Administrative Elmenses. Medtronic will reimburse the City and EDA for all costs of the City and Authority in advancement of the Project, including but nollimited to the costs of the City Consultants, preparation of AUAR, fmancial analysis of the Project and the Tax Increment Plan, TIF District analysis and creation, legal fees, survey and title costs, environmental review costs, environmental site investigation costs and other similar costs. These costs to date are estimated as follows: Orion A . sal Patchin, Messner and Dodd Short Elliot Hendrickson RLK Knusisto Boonestro Ehlers & Associates Kenned & Graven Bri s and Mor an Various Pa rs TOTAL A raisal of The Brid es Billboard A raisal Wetland delineation AUAR AUAR & Utili Estimate Financial Anal sis and TIF District 10 , Ie islation, billboard ne otiations TIP District and 10 'slation 10 INotices N/A $2,500 $12,500 $2,021.68 $80,50234 $2,393.82 $8930256 $95,806.49 $16,500 $763.75 $312 076.04 Medtronic will be required to reimburse the EDA for these expenses upou approval of the Development Agreement. A fmal cost accounting will be completed prior to sale of the land and Medtronic will reimburse the EDA for the additional expenses at closing. If the EDA does not approve the Development Agreement, Medtronic will not be required to reimburse the EDA for any expenditures. If after approval of the Development Agreement Medtronic doesn't proceed, they will still be required to reimburse the City and EDA for these costs. 6. Tn Increment a. Creation of a TIF District. The EDA will be required to create TIF District No.5 in 2005, which will be an Economic Development District as defined by the special legislatiou passed for the City and this project during the 2005 legislative session and as detailed above. It is anticipated that the first increment will be received in 2007, thus the district will tenoinate in 2032. b. Minimum Assessment Agreement. Medtronic will be required to enter into a Minimum Assessment Agreement with the City and County for a minimum value of $6,650,000 million as of January 2, 2006, $32,800,000 million as of January 2, 2007 and $65.6 million as of January 2,2008 (Note: the minimum assessment amounts are subject to review and approval by the County Assessor). This equates to $80 sqlft and is the minimum set to detennine the size of the TIF Note. The County Assessor will detenoine the actual vatue, however at no time will Medtronic be able to contest the assessed SJR-263965vl MU20s.30