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<br />.APR,30 1004 9:40AM <br /> <br />METRO, PLAINS <br /> <br />NO, 167 <br /> <br />p, 4 <br /> <br />4. Cost of the Bluff Block. <br /> <br />The Development Agreement will identify the purchase price that MetroPlains must pay <br />to acquire the Jackson Block. <br /> <br />In addition to being v.illing to reduce the SAC and WAC fees, if necessary, to make the <br />projects feasible the City is willing to reduce the cost of the Jackson Block in its entirety if <br />necessary. However, the City is willing to reduce the SAC and WAC fees and the cost of the <br />Jackson Block only if construction of the Bluf'fBlock occurs. MetroPlains a"arees that the City <br />can recapture the value of the Jackson Block from tax increments derived from inflation. <br /> <br />5. Issuance of City Tax Increment Bonds. <br /> <br />The Development Agreement will state that in order to enable MetroPlains to achieve the <br />profit, fees and rate of return contemplated by this memorandum, the City will consider issuing <br />revenue or general obligation tax increment bonds to refinance the Bluff Block tax increment <br />revenue notes. <br /> <br />The City will consider issuing General Obligation Tax Increm.ent Bonds subject to the <br />following conditions; <br /> <br />. it is determined that the construction of the Bluff project will not occur without <br />the issuance of the bonds; <br /> <br />· the principal amount of the bonds will not exceed the amount of tax increment <br />generated by the Bluffproject; <br /> <br />. bonds will not be issued for the Jackson project. <br /> <br />. bonds will not be issued until the construction financing closes on the Bluff <br /> <br />proj ect; <br /> <br />· personal guarantees of shortfall in tax increments will be required from principals <br />of Metro Plains or MetroPlains' parent company, MetroPlains Properties, Inc. if determined by <br />Ehlers and Associates to have sufficient net worth and asset liquidity; <br /> <br />. no profit can be taken out of the Bluffproject by MetroPlains until the actual <br />market value of the completed Bluff project is determined and the actual amount tax increments <br />generated by the Bluffproject is established; <br /> <br />· if tax increments are less than expected, developer profit will be used to pay the <br />debt service on the bonds; <br /> <br />. minimum sale prices established for the Bluff housing units cannot be changed <br />without liRA consent. <br /> <br />3 <br /> <br />1643076vl <br />