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city of Santa Ana <br />Proposal for Opportunity Zone Services <br />June 20, 2019 <br />Page 5 of 11 <br />Kosmont anticipates one (1) in -person meeting with the City associated with Task 2. <br />Deliverable: Task 2 initial findings will be summarized as the Santa Ana Opportunity Zone <br />Prospectus in PowerPont Presentation and Summary Memo format. <br />Optional Task 3: Initial Implementation Secure OZ Fund Partner (s) Transaction <br />Structuring and Negotiations <br />Kosmont will review and evaluate Opportunity Fund options and provide strategic <br />guidance to Client regarding investor matchmaking. Once target Qualified Opportunity <br />Fund(s) ("QOF")) are identified, selected, and matched to developments in City OZs, <br />Consultant will provide initial strategic outreach and negotiation assistance, including the <br />evaluation of potential investment options, the negotiation of exclusive negotiation <br />agreements with OZ investor funds and/or developers, and other site due diligence <br />activities, <br />Deliverable: Task 3 will result in the selection of preferred OZ fund investor(s) with <br />preliminary term sheets. <br />Note: iRS regulations require that a QOF shall: 1) be a special-purpose entity that <br />effectively acts as a conduit to ensure that investor capital is employed in a business <br />located within a QOZ and 2) must self -certify that it is a QOF by tiling Form 8996 with its <br />tax return for each year that it intends to operate as a QOF, <br />Ill. SCHEDULE AND REQUIRED DATA <br />Consultant is prepared to commence work upon receipt of executed Agreement. Client <br />will provide KR with all existing project data including proposed Civic Center <br />redevelopment concepts, zoning, General Plan, and previous market studies, Client will <br />also provide consultant with data and information needed for prospectus development, as <br />outlined above. <br />IV. COMPENSATION <br />Compensation for Task 1 and Task 2 is estimated at $50,000 for professional services <br />(hourly) fees at KR's billing rates as shown on Attachment A. <br />OZ Due Diligence Package Tasks <br />Estimated <br />Budget <br />Timeline <br />Task 1: OZ Project Concept Due Diligence Package <br />$30,000 <br />60 Days <br />Task 2: OZ Marketing Package <br />$20,000 <br />+30 days <br />Task 3: Initial Implementation (Optional) <br />$20,000 <br />B' end of year <br />TOTAL (not including T S M for additional meetings) <br />$70 000 <br />Future increases in budget will require approval by Client in advance. Budget may be <br />increased by Client at any time, Certain costs may be recoverable from selected OZ <br />Fund(s). <br />KOSMONT REALTY <br />1601. N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 1 ph 424.297.1079 1 www.kosmontreally.com <br />