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4) Between land cost and excess TIF from other districts, the City has potentially $2M to $4M in equity that could be injected into this project. The repayment of this equity could be flexible such as a asserted loan, cosh flow sharing, etc. How does the equity help you and what ways would you suggest far potential repayment of this equity? In today's financing environment, Me equity you refer to will be of great advantage in financial modeling and in ultimately financing Me deal. Repayment of Me equity depends entirely on Me ownership structure that is negotiated, additional partners that may be brought into Me deal, and your expectations for return on your investment in Me property. The scope, size and character of the senior community, as suggested by Me market study, will be key in helping determine ine equity required to finance the project, as will the condition of the capital markets at the Mme of financing. Once the market study is available and Ecumen has been engaged, various options miaWe to its use and repayment can be identified and evaluated. 5) What other information or ideas could you share with the City? If now Is a difficult time to do a pmject, is there an alternative arrangement, such as exclusive negodetlons contract Mat you would consider? Ecumen is developing and building senior communities in this current economic environment. In fact, we have more than 300 units under construction right now in Maplewood, MN, Apple Valley, MN and Lincoln, NE. If a current market study supports demand for senior housing in the City of New Brighton, then we would work with your TEAM to determine Me best approach to develop. secure financing, build and operate the new community. If the market study does not have sufficient demand to support a senior housing community at this time, than we would entertain some type of contract Mat was matua0y beneficial to both entities Mat allows for the development of a senior housing project sometime in Me future. 6) One question that has come up from time to time concerns how senior assistant Ilvmg/memory projects are assessed for tax purposes. Does Ecumen own these as far -profit enterprises and pay real estate lazes? Or is MIS something that is has exempt? I seem to recall a very brief discussion about Me topics on the tour. All of the senior housing communities the we own, and many that we manage for others, are non-profit enterprises. This allows us to benefit from sales tax exemption only. With the exception of our Skilled Nursing communities, all of the senior housing communities with which we are involved, pay some type of property tax. Generally our low-income senior housing projects will have a payment in lieu of taxes payment option with the city and county. For our market rate senior housing communities, we will always work with Me city and county to establish a reasonable property has rate Met does not price the property out of Me market for the customers we serve.