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2.03 The City will provide the Developer with tax increment financing assistance for the Proj ect, payable solely from tax increments derived from the Development Property in the form of pay-as-you-go tax increment assistance that may be evidenced by a tax increment revenue note (the "Note") in accordance with the terms and conditions of the Development Agreement. The amount, interest rate and payment terms of the Note and the administrative fee of the City will be negotiated subsequent to the execution of this Memorandum and prior to the execution of the Development Agreement. 2.04 The Developer acknowledges that the City will not initiate preparation of the final Development Agreement referred to in Article 3 hereof until the Developer has provided the City with sufficient detail about the Project to enable the City to accurately estimate the level of tax increment financing required by the Proj ect to make it economically feasible. The principal amount of the Note will take into account, among other things, the need for "gap financing", the amount of public benefit from the Proj ect, the design of the Proj ect, and the costs of the Proj ect which are eligible to be reimbursed from tax increments. ARTICLE 3. DEVELOPMENT AGREEMENT 3.01 The Developer and City will exercise their best efforts to negotiate and enter into a binding Development Agreement, the provisions of which will supersede, but be consistent with the terms of this Memorandum. The Development Agreement will contain such other terms and conditions as are customary in the industry and are otherwise agreed to by Developer and City. 3.02 Prior to preparation of the Development Agreement, the Developer acknowledges that it will be required to provide the City with all documentation deemed necessary by the City to evaluate the Proj ect, including but not limited to the following (a) a timetable, acceptable to the City, for the construction of the Project; (b) letters of intent, commitment proposals or other evidence reasonably satisfactory to the City, from financial institutions, subject to customary contingencies, to provide financing for the Project; (c) Site plan and project design documents prepared by an architect, in form and substance acceptable to the City; and (d) a pro forma budget for the Proj ect, showing all Proj ect costs and sources of funds, including a separate break out of costs eligible to be financed under the Tax Increment Act; and ARTICLE 4. FEES AND EXPENSES 4.01 The Developer agrees that it is responsible, whether or not the Development Agreement is executed, to pay the reasonable fees and expenses incurred by the City to the following (a) the fees and expenses of the law firm of Briggs and Morgan, Professional Association, for the preparation of this Memorandum and the Development Agreement, the creation of the Tax Increment Financing District, (b) fees and expenses of the firm of Springsted for the financial analysis required for the creation of the Tax Increment Financing District, and (d) the fees and expenses of any other consultants retained by the City. The City will notify the Developer prior to retaining any additional consultants for the Proj ect, which notification will include an estimate of the consultant's fees and expenses. The Developer acknowledges that the City will retain 10% of the Tax Increment to pay "Administrative Expenses" of the City incurred a4o6aa6�a 2