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DHORSEY <br /> • d. Profit Sharing on For Sale Urban Flats. Preliminary development proformas for <br /> the For Sale Housing Development are attached as an Exhibit to the Agreement. <br /> The For Sale Housing Developer anticipates a twelve (12) percent profit on the <br /> development. Once this profit margin is achieved, they will provide a prorated <br /> "pay back" to the City and HRA of 25% of the excess profit. If the project profit <br /> exceeds fifteen (15) percent, then the HRH's prorated share of the profit will be <br /> increased to 50%. The profit calculations exclude any unit "upgrades"requested <br /> by homeowners. <br /> e. Below Market Profit TIF Assistance Increase. Provided the For Sale Housing <br /> Developer is not in default, in the event the return to the For Sale Housing <br /> Developer is less than 12%, the City and HRA shall provide the For Sale <br /> Housing Developer a subordinated Pay-As-You-Go (PAYG)Tax Increment Note <br /> in the amount needed to attain a 12%return. The Subordinated TIF Note shall be <br /> payable solely from the amounts of Available Tax Increment on the Phase I For <br /> Sale Housing not utilized to pay the Tax Exempt TIF Refinancing or the <br /> City/HRA 5%administrative fee <br /> f. Look Back Provision—Commercial. Preliminary development proformas for the <br /> Commercial Development are attached as an Exhibit to the Agreement. When <br /> the developments are completed the actual development proformas in the <br /> categories of relocation, demolition, and Apache Plaza overhead and carrying <br /> costs, will be compared with the preliminary development proformas. If the <br /> Commercial Developer meets its construction and lease goals, then the excess <br /> • proceeds will be disbursed to the City and HRA as excess TIF and will be made <br /> available for Phase II developments within the TIF District. <br /> g. Rental Housing Development. The City and HRA will enter into a separate <br /> redevelopment contract with the Rental Housing Developer. A separate But-For <br /> analysis will be completed for this portion. <br /> h. Condemnation. The Developer will utilize reasonable efforts to acquire all <br /> property privately prior to requesting the HRA to initiate condemnation, <br /> including use, where appropriate of HRA sponsored mediation. The HRA will <br /> agree to undertake condemnation of all real properties located within the <br /> Development area, including any leaseholds, easements, restrictive covenants or <br /> other or other legal or equitable interest that encumber the Development area and <br /> would restrict redevelopment as contemplated. Condemnation shall be <br /> undertaken on a schedule mutually agreed to between the Developer and the <br /> HRA. <br /> All costs of condemnation proceedings, including, but not limited to legal fees, filing <br /> fees, costs, appraisal fees and title work, shall be paid by the Developer, subject to <br /> reimbursement of certain costs as a public redevelopment cost from Tax Increment. <br /> The Developer shall enter into a Reimbursement Agreement with the HRA to <br /> reimburse the costs of condemnation proceeds, condemnation awards and relocation <br /> as incurred for acquisition of the Phase I property. <br /> • i. Advancement and Reimbursement to Developer. The Developer has reimbursed <br /> and agrees it will in the future continue to promptly reimburse the City and HRA <br /> for all costs of the City and HRA in advancement of the Project, including but <br /> 5 DORSEY&WHITNEY LLP <br />