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City Council Regular Meeting - 04/25/05 Minutes - Page 20 President of Rottlund Homes, identifying specific parcels, ownership and negotiation status; as well as status of existing tenants and potential relocation costs. Page 4, Tax Increment Revenue Bonds/Notes Discussion included determination of a Reconciliation Date, and interest rate calculations and projections. Page 5, Calculation of Redeveloper Margin and Limitation of Assistance Ms. Reiter identified Proforma calculations for resources and uses; level of profit with consideration of all potential revenues to the project, with a fixed cap and date for that calculation, to be further detailed in the redevelopment agreement; commercial property appraisal comparisons; and determination of all future income of developer and determination of retail valuations of property. It was Council consensus that this be addressed specifically, with further definition in the redevelopment agreement to ensure disclosure and identification by the developer to capture additional income sources. Mr. Casser1ey advised that this was in process now, and that the analysis will be attached to the redevelopment agreement, with a series of explanations to track it, the City's level of investment and rates of return, to be agreed upon by both parties to the agreement. Further discussion included the margin shares listed in the term sheet, average rates of return on an industry-wide basis, and data available from publicly-held companies in determining the rates. Bob Strachota, President of Shenehon Companies, the developer's appraisal firm, reviewed 2003 data, as the most current available, from 21 competitors in determining the margins as listed. Mr. Casserly clarified that the margin is a not-to-exceed limit, represented construction, not land sales, and only applicable to eligible expenses of available TIF over a 25 year TIF District.