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NOW THEREFORE, CAP Acquisitions agrees to the following: <br />(1) For the following road segments outlined in Appendix A and B, CAP Acquisitions <br />shall design, prepare plans/ specifications, construct, and provide upfront financing. <br />SEGMENT: A-1, C-1, C-2 <br />Bolton & Menk estimated costs: $766,000, $481,000, $190,000 = $1,437,000. <br />Construction of Public Infrastructure shall be completed before a certificate of <br />occupancy for the Proposed Development is issued by the City of Ramsey. <br />(2) For the following road segments outlined in Appendix A and B, CAP Acquisitions <br />shall pay the City 20% of the total estimated costs, at the closing of the Purchase <br />Agreement: <br />SEGMENT: B <br />Bolton & Menk estimated cost: 290,000 x 20% = $58,000 payment to the City. <br />This shall be a onetime payment. Construction will occur at an undetermined <br />time in the future. CAP Acquisitions shall not be responsible for increased costs. <br />NOW THEREFORE, the City agrees to the following: <br />(3) For the following road segments outlined in Appendix A and B, the City will enter <br />into a Tax Increment Financing (TIF) Agreement, and reimburse CAP Acquisitions <br />certain costs to design, prepare plans/ specifications, and construct. <br />SEGMENT: A-1, C-1 (80% reimbursement) <br />Bolton & Menk estimated costs: $766,000, 481,000 x 80% = $977,600 <br />reimbursement <br />SEGMENT: C2 (100% reimbursement) <br />Bolton & Menk estimated costs: $190,000 x 100% = $190,000 reimbursement <br />The TIF Agreement shall be drafted, executed, and recorded before closing on the <br />Purchase Agreement. The TIF Agreement shall include 4.5% interest charges <br />paid to CAP Acquisitions from the City, in addition to principal payments. The <br />TIF Agreement will be structured as a PAY -GO TIF note. Based on current <br />property tax projections, the TIF Note will be paid back in 8 years. The TIF <br />Agreement will include a minimum assessment provision. <br />All parties understand this agreement includes preliminary costs estimations for Public <br />Infrastructure, and preliminary payback forecasts for TIF. Actual final Public Infrastructure <br />costs and actual final TIF payback periods may change. All parties agree in principle to this non- <br />binding agreement. <br />Page 2 of 6 <br />