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<br />Calculation of Redeveloper <br />Margin and Limitation of <br />Assistance: <br /> <br />Land acquisition prices: <br /> <br />Land sales prices: <br /> <br />Construction Fund Admin- <br />istration and Accounting: <br /> <br />3. City's administrative fee (5% or as agreed upon following <br />consultation with City staff and Finance Director) <br />4. TI Revenue Notes <br /> <br />The Redeveloper's net income from the Project shall be determined <br />by subtracting all costs incurred in building out the Project from all <br />Project Revenues. The total "margin" shall be a percentage obtained <br />from dividing this income by the total of all proceeds from sales of <br />land, housing units and commercial and office property. The <br />Redeveloper's share of the margin shall not exceed the amount set <br />forth below. <br /> <br />Total Redeveloper's City's <br />Margin (%) Share Share <br />Up to 12.5% 100% 0% <br />12.5-15.0 75 25 <br />15.0-17.5 50 50 <br />Over 17.5 25 75 <br /> <br />For purposes of determining the cost of land held by the Redeveloper, <br />the parties will use the value as determined by appraisal or other <br />process agreed to by the parties. <br /> <br />For purposes of calculating revenues from sales of land: <br /> <br />. If land (improved or unimproved) is sold to an unrelated party in <br />an arm's length transaction, those prices will be determinative. <br />The Redeveloper will certify to the City that such pmiy would be <br />considered unrelated under applicable Internal Revenue Code <br />regulations. <br />. If property is sold to a related party (as defined in Internal <br />Revenue Code regulations), the land sale price will be determined <br />by agreement between the City and Redeveloper or, if agreement <br />cannot be reached, the land sale price will be the higher of an <br />appraisal conducted by an appraiser mutually agreeable to the <br />parties or the actual sale price. <br />. For improved property still owned by the Redeveloper on the <br />Reconciliation Date, an "imputed" sales price based on an <br />appraisal, or other method acceptable to both parties for valuing <br />the property or its rate of return, will be used. <br /> <br />The Redeveloper will administer Project revenues and disbursements <br />therefrom, subject to trust instruments, etc. regarding the repayment <br />of Bonds. The Redeveloper will deliver to the City quarterly reports <br /> <br />5 <br />