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ers Edge Apartment Proposal b Sheet pst 27, 2010 y would require the redeveloper to enter into a minimum assessment agreement of per unit beginning January, 1, 2013 increasing 3% per annum through 12/31/17. er, conventional property valuation will commence. The;(pity is proposing that the redeveloper pay a park dedication fee of $1,630 per unit, but that the 6bligation can be paid over 10 years at no interest beginning in 2013 through 2022. Specific temiI need to be negotiated (i.e. whether annual or semi-annual payments). Is Thelgity is proposing a dual "look back" provision. At completion of the construction of the building, the redeveloper shall submit a complete list of costs for the project in accordance with generally accepted accounting principals. If the costs of the project are less than the project budget as submitted to the City, the first $200,000 would be repaid to cover the balance of unpaid park dedication fees. Any remaining project budget would be split between the City and the redeveloper at a 25% (city) / 75% (SC) level. The City agrees to set aside any look back savings above $200,000 toward future park or bridge construction in the Northwest Quadrant. The second look back would only be invoked if the redeveloper sells the building within 10 years (December 31, 2022). At the time of the sale, the redeveloper would prepare a description of sales proceeds, equity invested, and annual cash flow (excluding depreciation). If such a calculation results in proceeds in excess of a 16% internal rate of return, the remainder is split between the City and the redeveloper at a 50%/50% level. The City and the redeveloper will formalize the transaction by entering into a Contract for Priv i e Redevelopment. Due to the complexities of the underlying financing for the Northwest Qua ant, the City would prefer to take the lead in drafting this document. The City's rede lopment counsel would work with counsel for the redeveloper and any lenders. This doc i -ient would be recorded against the property, but could be subordinated to secure financing. H