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36 Mark Casey Development Agreement - Dominium Senior Housing Project June 12, 2012 Page 2 d. Assessment Agreement. Dominium is required to execute a Minimum Assessment Agreement (MAA) for the project. The MAA will be for $14,440,000 ($85,000/unit) as on January 2"d in the years 2015 through 2029 (for taxes payable in 2016-2030). The end date of 2029 is the legal end year of the TIF district (expires on December 31, 2030). The MAA can be terminated if the State Legislature enacts changes that would cause the property to fall below the MAA amount. 3. Development Timeline Commencement and Completion. The desired commencement date is March 31, 2013and the default date is September 30, 2013. The desired completion date is October 31, 2014 and the default date is December 31, 2014. 4. Tax Increment a. PAYGO TIF Note. The City will issue Dominium a pay-as-you-go TIF note in the principal amount of $1,023,000 (condition precedent to issuing is filing of the MAA). The TIF Note is payable from 90% of the TIF generated from their development and is payable on February 1 and August 1 of every year commencing on August 1, 2015 through February 1, 2031 (15 years which is the remaining term of the TIF district). b. Tax Petitions. If Dominium petitions its market value, the City is only required to pay them TIF based upon the MAA value. Once the petition is settled, then any shortfalls in TIF payments will be made up on the next TIF note payable date (August I or February 1). Dominium is required to inform the City of any tax petitions they submit for the project. c. Assignment of TIF Note. The TIF Note cannot be assigned without the written consent of the City, provided however that such consent shall not be unreasonably be withheld. d. Look Back Provision. As an Exhibit to the Development Agreement, a mutually agreed upon preliminary development proforma for project will be attached. Within 60 days of the earliest of (i) the date of stabilization of the project (93% occupancy), (ii) transfer of the project, or (iii) 3 years after the date of issuance of the CO, Dominium is required to provide the City with actual audited financials showing the actual annualized cumulative Internal Rate of Return (IRR), assuming a sale in the 10th year. If the IRR exceeds 20%, then 50% of the amount in excess of the 20% IRR will go to reduce the principal amount of the TIF Note. 5. Miscellaneous. a. City ConsultimY Costs. Dominium will reimburse the City for all legal and fiscal consulting fees associated with development of the project and creation of the required documents (purchase agreement and development agreement.