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Calculation of Redeveloper <br />Margin and Limitation of <br />Assistance: <br />The Redeveloper's net income from the Project sha11 be determined <br />by subtracting a11 costs incurred in building out the Project from a11 <br />Project Revenues. The total "margin" sha11 be a percentage obtained <br />from dividing this income by the total of a11 proceeds from sales of <br />1and, housing units and commercial and of�ice property. The <br />Redeveloper's share of the margin sha11 not exceed the amount set <br />forth below. <br />Tota1 Redeveloper's City's <br />Margin (°/a) 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 />Land acquisition prices: For purposes of determining the cost of land held by the Redeveloper, <br />the parties wi11 use the value as determined by appraisal or other <br />process agreed to by the parties. <br />Land sales prices <br />Construction Fund Admin- <br />For purposes of calculating revenues from sales of 1and: <br />If land (improved or unimproved) is sold to an unrelated party in <br />an arm's length transaction, those prices wi11 be deteiminative. <br />The Redeveloper wi11 certify to the City that such party would be <br />considered unrelated under applicable Internal Revenue Code <br />regulations. <br />If property is sold to a related party (as de�ined in Internal <br />Revenue Code regulations), the land sale price wi11 be determined <br />by agreement between the City and Redeveloper or, if agreement <br />cannot be reached, the land sale price wi11 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 sti11 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, wi11 be used. <br />istration and Accounting: The Redeveloper wi11 administer Project revenues and disbursements <br />therefrom, subject to trust instruments, etc. regarding the repayment <br />of Bonds. The Redeveloper wi11 deliver to the City quarterly reports <br />and also year-end compilation reports which have been prepared by a <br />CPA and certi�ied by the Redeveloper, with both types of reports to <br />not be more limited in scope than the reports which are required to be <br />submitted to its investors and lenders. <br />� <br />