CC RES 03-097 A RESOLUTION RELATING TO THE REDEVELOPMENT OF PROPERTY IN REDEVELOPMENT PROJECT AREA NO. 3 AND AUTHORIZING THE PREPARATION, EXECUTION AND DELIVERY OF A REDEVELOPMENT AGREEMENT AND RELATED AGREEMENTS

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D:D 0ORSEY • not limited to the costs of consultants, financial analysis of the Project and the Tax Increment Plan, Redevelopment and TIF District analysis and creation, legal fees, survey and title costs, environmental review costs, environmental site investigation costs and other similar costs. The Developer will be reimbursed for these costs and costs associated with acquiring and holding the Apache Plaza property and other overhead as a qualified Tax Increment cost in an amount that is currently estimated to be $2,645,000 and individually listed as follows: Predevelopment Costs(Public/Private): $1,250,000 Apache Mall Holding Costs $355,000 Apache Capitalized Interest: $100,000 Developer Overhead/Administration $590,000 Developer Capitalized Interest—Project Costs: $350,000 TOTAL $2,645,000 The Developer shall cost certify all such private third party costs and expenses of the developer to the reasonable satisfaction of the HRA. Any cost savings will be considered available Tax Increment for other qualified costs in the Redevelopment District. j. Developer Incentive Payment. Any costs savings by the Developer on • negotiating the purchase, relocation (only due to non statutory payments) and demolition of the three commercial properties for the Phase IA For Sale Housing component will be used to first cover any overruns in any other Developer category and second shall be paid one-half to the Developer and one-half shall be available to the City and HRA for other public redevelopment costs. The Incentive Fee will not be payable to the Developer if he is in default under the Redevelopment Contract. k. Grants. The City will provide the Developer with the $586,000 grant it received from the Metropolitan Council for the Asbestos Abatement at Apache Plaza. The City will use its best efforts to obtain LCDA and Tax Base Revitalization grant funding and any other available funding from Metropolitan, Sate and Federal Sources. 1. Master Developer Fee. The Developer will be paid a$1 million fee for the Phase I development. The fee will be paid as follows: Rental Housing Sale: $500,000 Commercial Sale: $300,000 For Sale Housing Sale: $200,000 The Developer will be paid at the time of the closing of the land sale for the Rental Housing and the For Sale Housing. The Commercial portion will be paid at the time of construction financing. At the land sale closing, one-half of the fee will be paid to the Developer and one-half of the fee • shall be deposited with the HRA, until the HRA has received $250,000 as security against defaults and for Phase 1I of the project. The HRA may use this $250,000 to fund public redevelopment costs on an interim basis until payable to the Developer. No interest shall be paid 6 DORSEY&WHITNEY LLP