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66 meaning of the Minnesota Business Subsidy Act, Minnesota Statutes, Sections 1167.993 through 1167. 995 based on the exception contained in Minnesota Statutes, Section 116J.993, subdivision 3(7). Section 9.7 Tax Increment Adjustments. (a) Generally. 'The financial assistance to the Developer under this Agreement is based on certain assumptions regarding likely costs and expenses associated with constructing the portion of the Minimum Improvements. The Authority and the Developer agree that those assumptions will be reviewed at the times described in this Section, and that the amount of Tax Increment assistance provided under Section 9.1 will be adjusted accordingly. (b) Definitions. For the purposes of this Section, the following terms have the following definitions: "Calculation Date" means 60 days after the earliest of (i) the date of Stabilization for the Minimum Improvements; (ii) the date of any transfer in whole or in part of the Minimum Improvements; or (iii) three years after the date of issuance of the Certificate of Completion for the Minimum Improvements. "Net Operating Income" means all net rental income from the Minimum Improvements received in the last fiscal year prior to the Calculation Date, subject to the following adjustments: (i) if the Minimum Improvements have not reached Stabilization as of the Calculation Date, income will be calculated as the sum of actual rent, from the apartments, garage, storage lockers and miscellaneous income plus assumed rent, garage, storage lockers and miscellaneous income for the space needed to reach 93% lease -up at rates equal to the average rent and garage and storage locker income from actual leases and miscellaneous income as of the Calculation Date; (ii) from that total will be deducted actual fees, operating and management expenses as outlined on Exhibit E hereto (if Stabilization has occurred) or estimated fees, operating and management expenses as if the Minimum Improvements were 93% leased (if Stabilization has not occurred). "Stabilization" means 93% of the Minimum Improvements are leased. (c) Lookback Calculation. On the applicable Calculation Date, the Developer shall deliver to the Authority reasonable evidence of its actual annualized cumulative internal rate of return (the "IRR") from the Minimum Improvements, calculated as of the applicable Calculation Date, along with the estimated annualized cumulative IRR from the Minimum Improvements assuming a sale in the tenth year after the date of issuance of the Certificate of Completion for the Minimum Improvements. The IRR shall be calculated based on equity, revenues and expenses in substantially in the format of the lookback pro forma attached as Exhibit E hereto. The Developer agrees to provide to the Authority any background documentation reasonably related to the financial data, upon written request from the Authority or the Authority's financial consultant. The Authority may, by written request, require Developer to deliver to the Authority a written certificate of a certified public accountant regarding total redevelopment costs and revenues, to be provided at Developer's expense. 22