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32 Mike Morrison Development Agreement — Phase Ill Silver Lake Village Redevelopment August 10, 2010 Page 4 actively meeting and pursuing third party developers. It is currently estimated that the amount of present value tax increment that will be generated from these two (2) developments is approximately $1.7 million (see attached site plan). Phase IHB. The increment generated from Phase IIIB (Baker's Square parking and Don's Car Wash) will be made available to Apache Redevelopment LLC or a third party Redeveloper, dependent upon who develops the site. If there is any increment that is not needed by Apache Redevelopment LLC or a third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIP not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. Phase II1C. The increment generated from Phase IIIC (Fuel Maim. and Fuel Mart Car Wash) will be made available to a third party developer. If there is any increment that is not needed by the third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIF not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. 6. Redeveloper Obligations a. Outstanding Consultant Costs. The Redeveloper is required to pay the outstanding consultant costs through April 30, 2010. These costs total $161,877. The Redeveloper will pay the City $15,000 at the time of execution of the Agreement and the remaining $146,877 balance will begin to be paid to the City at the time the Phase TA Revenue bonds are refinanced (anticipated in 2014). The City will receive 50% of the increment not needed to pay debt service on the new bonds, until such time the outstanding consultant costs are paid in full. After that, any increment not needed to pay debt service on the bonds will go to pay the TIF obligation outlined in #2 above. b. moment of Taxes. The Redeveloper is required to pay any unpaid taxes and all future taxes as they become due. Failure to pay taxes in a timely fashion is an event of default and is not subject to a cure period (cause for immediate termination of the Agreement).