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(2) If the Redeveloper sells unimproved property to a related party, the sale price shall be the price at which the unimproved or subsequently improved property is first sold to a party unrelated to the Redeveloper or to any of its equity owners. (3) If the Redeveloper seIls improved property to a related party, the sale price wiIl be determined by agreement between the City and Redeveloper or, if agreement cannot be reached, the sale price will be the higher of an appraisal conducted by an appraiser mutually agreeable to the Parties or the actual sale price. (4) For improved property still owned by the Redeveloper or by a related party of the Redeveloper or of any of its equity owners on the Reconciliation Date, an "imputed" sales price based on an appraisal, or other method acceptable to both Parties for valuing the property or its rate of return, will be used. Section 4.6. Tax Increment Notes. (a) On each April 1 foIlowing execution of this Agreement, including and ending with the Reconciliation Date, the City shaIl issue and deliver to the Redeveloper a Tax Increment Note in substantially the form attached hereto as Exhibit D, but only in an amount: (1) required to pay Eligible Project Costs which have been certified by the City pursuant to Section 4.3 and have not already been, and are not expected to be, reimbursed or paid with other Project Revenues, and (2) which will not cause the Redeveloper Return to exceed (i) twelve and one- half percent (12.5%) for Tax Increment Notes issued before the Reconciliation Date, or (ii) the percentage permitted by Section 4.4 for any Tax Increment Note issued on the Reconciliation Date, provided that the amount of the Tax Increment Note issued on the Reconciliation Date shall also include the amount necessary to refund and replace all outstanding Tax Increment Notes issued before the Reconciliation Date, and shall not exceed the amount of Tax Increment that is projected to be available to pay the principal of and interest on such Tax Increment Note in accordance with the priority for use of Tax Increment set forth in Section 4.10. The available Tax Increment shall be projected using the Reconciliation Date as the present value date, a discount rate of seven percent (7%) and an inflation rate of three percent (3%). (b) Each Tax Increment Note issued before the Reconciliation Date shall bear interest at the rate of seven percent (7%) per annum. Any Tax Increment Note issued on the Reconciliation Date shall bear interest at a rate per annum equal to the then-prevailing Yield on 10-year Treasury Notes plus two and eight-tenths percent (2.8%), subject to a maximum of nine and one half percent (9.5%). ( c) Interest will accrue on each Tax Increment Note from the date of issuance of such Note. Interest on each Tax Increment Note shall be computed on the basis of a 360-day year of 19