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<br />Medtronic Term Sheet
<br />January 17,2006
<br />Page 2
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<br />8. If the buyout alternative has to be undertaken for the billboards, Medtronic will pay all costs
<br />associated with this (buyout option would be initiated if the City approved relocation sites and
<br />Clear Channel chooses not to relocate to them). It is anticipated that up to three billboards will
<br />fall under this option since one site (Sysco) has been approved by the City for location of a
<br />billboard. If we are to assume that all three will need to be bought out, the cost associated with
<br />this is $2,475,000 ($825,000 per billboard). As noted in the original Agreement, Medtronic was
<br />responsible to buyout the 15t two billboards and the City was responsible for any billboards
<br />above and beyond the 15t two. This request increases Medtronic's contribution by $825,000, if
<br />three billboards need to be bought out, and by $1,650,000 if four need to be bought out (they
<br />don't pursue the Sysco site). Medtronic is of the opinion that Clear Channel should relocate a
<br />billboard to the Sysco site and that this should be pursued at all costs. They agree that if
<br />MNDOT doesn't approve a permit, then they will pay the cost to buyout the sign (assumes that
<br />they have to buyout 4 s,j~s). O\'c~~a,ll,they would like to ke€JP theacq,!isition, tel 3 signs rather
<br />than 4, so i.f another sit~iij~~~ppro$~~r{~4(C~ear Char,mel rel~f~t~~;6~e?tthe:4 signs, then ifin
<br />the alternative they h;v(j'$()91w 0l),tpj9t4ers1gns, theY are okaY;:-Ylt4;tha!,'C_ ; _
<br />.- - ,:t?{~~';)' ~i~\ f:~N~~L~:{~:~:"~-}~:: ; ":..- : :':!~~j:~': :',:::. ,:':'-< -', .- :':::::i:, _:.:;: ~;.:
<br />9. Costs associated withc,1jt5;At'~~ancj,~,,*7 abqye willreiJ,nire Me!i1mnic to "pay an additional $1.1
<br />million in costs, rather;' th~#l,awj' th~C-ity p~y'iiiem arld');leducting tl)-is amount from the
<br />available TIF. If they have:t.,~jpaY,1;be $82-,>,000 in'costs outllned in #8 <!hove, then their total
<br />costs they will contribute wi,~~~ ~1}~;!'5,O~Q. ' 'i'," fe.,"'!';
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<br />':~~"" - : "','.- - - '-" "--'-':,' :-'.-":"':', -; : - .-.
<br />10. Medtronic will pay tp;brini}~ e;ll\'#Il-into working C6mplilli;JCli(;fef use at a cost of $545,000.
<br />This increases their'IjIF asslS'ti!nc~~~$22.545 n;rilli(JltJn liM;tlon, the City is requesting that
<br />Medtronic make a Pl\YmenM~:th~1r.oadwaY reconsti:U.qtion-fUnd in the amount of $355,000 to
<br />address reconstructiQIj.<and.it~l;!ic;r~~lies oPcollectoreroaas thatwere not a<l<lj:essed as part of the
<br />transportation packa~e;~l1dl;l'onk,i\vill re.ceive$35MOq nior(j in TIF (tqtalof $22.9 million).
<br />It is understood bY';~l1'GJ-tYi that:ti).e rewitiriir!g $355;'OOO'available inTIf will first go to
<br />overruns in utility cos~s(o~ the$400,000estiIhate), Wen tiJ.:~jremaining limi)unt will go to the
<br />road reconstruction fu-nd3tid is a riot to exceed number toaccOliunodate these items/costs.
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<br />1 L Medtronic in return will receive 95% of the available tax increment from the entire
<br />development, up to the estimated to be $22.9 million (this is estimated based upon $80 sq/ft and
<br />is a not to exceed number).
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<br />12. Tax increment assistance will be provided for the structured parking only (cost to construct
<br />structured parking is estimated at $24 million).
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