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�� ..�� Priority of Application of Tax Increment: Calculation of Redeveloper Margin and Limitation of Assistance: • Interest rate of _°/a [to be negotiatedJ • 95% of available tax incrementwill he pledged + The pledge of tax increment for the TI Revenue Notes will be subordinated to the pledge of tax increment for any City Bonds, the TI Revenue Bonds and the City's admin. fee. • Any amounts unpaid at the maturity date of the TI Revenue Notes will be deemed paid in full. Available tax increment will be applied in the following priority: I. Any public improvement or special assessment bonds which the City has elected to issue 2. TI Revenue Bonds 3. City's administrative fee (5% or as agreed upon following consultation with City staff and Finance Director) 4. TI Revenue Notes The Redeveloper's net income from the Project shall be determined by subtracting all costs incurred in building out the Project from all Project Revenues. The Redeveloper's "margin" shall be a percentage obtained from dividing this income by the total of all proceeds from sales of land, housing units and commercial property. [The calculation d net income and margin , fo�� property not sold by the Redeveloper is under discussion.J The Redeveloper's margin shall not exceed ___:r�� [under discussionJ Land acquisition prices: For purposes of deteimining the cost of land held by the Redeveloper, the parties will use the value as determined by appraisal or other process agreed to by the parties. Land sales prices Construction Fund Ad�nin- For purposes of calculating revenues from sales o f land: If land (improved or unimproved) is sold to an unrelated party in an arm's length transaction, those prices will be determinative. The Redeveloper will certify to the City that such party would be considered unrelated under applicable Internal Revenue Code regulations. If property is to be sold to a related party (as defined in Internal Revenue Code regulations), the land sale price will be determined �� 4- agreement between the City a��d Redeveloper or, if agreement cannot be reached, the land sale price will be the higher of an appraisal conducted by an appraiser mutually agreeable to the parties or the actual sale price.