75A - PH RE AMEND DEV PYLON SIGN

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G. The Auto Mall will be responsible for repaying the Loan Amount to the City over 10 years. Each year the Auto Mall will receive credit for 50% of the new sales tax revenue generated to the City over the base year (calendar year 2016), which will be applied as a yearly repayment of the Loan Amount. At the end of 10 years of Loan Repayments, the remaining Loan Amount, if any, will be due and payable by the Auto Mall to the City. H. Additionally, the Auto Mall has agreed to provide the City access to space on the Sign for the purpose of marketing City sponsored events (e.g. Council or Commission or Special events). The programming would assist in increasing notification efforts of the public for City business and recreational events. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: DEFINED TERMS. The following terms when used in this Agreement shall have the meanings set forth below: "Base Year" shall mean January 1, 2016, through December 31, 2016. "Commencement Date" shall mean the date on which EMI completes the Sign installation, as set forth in a written notice from Auto Mall to the City. The parties anticipate that such work will take approximately 90-120 days to complete. "Contract Year" shall mean the period from January 1 to December 31 during each year of the Operating Period. For the purposes of this Agreement, the first Contract Year ends on December 31, 2018. "Covered Parties" shall mean the City and -its elected and appointed boards, members, officials, officers, agents, representatives, employees and volunteers. "Effective Date" shall mean the date first written on page 1 of this Agreement. "Loan Amount" shall mean the amount paid by the City to EMI, on behalf of the Auto Mall, for the delivery and installation of a new 75 -foot tall double face digital illuminated pylon Sign at the Santa Ana Auto Mall, which shall not exceed $1,032,948.00, pursuant to the terms of the EMI purchase order attached hereto as Exhibit B, plus an interest rate of 0.92%, which is the California Local Agency Investment Fund ("LAIF") rate of return as of June 30, 2017. The interest rate (0.92%) will be applied to the remaining loan balance after the annual repayment on an annual basis. "Loan Repayment" shall mean the amounts to be credited by the City to the Auto Mall for repayment of the Loan Amount. The credit shall be calculated as 50% of the new sales tax revenue generated to the City by the Auto Mall over the base year. The base year shall be calendar year 2016, in which the City received $2,483,889.00 in sales tax revenue from the Auto Mall. The credits shall continue for 10 years from calendar year 2018 through calendar year 2027. At the end of the 10 years, the Auto Mall shall be responsible for payment of any remaining Loan Amount and accrued interest, if any, to the City. "Operating Period" shall mean the period commencing as of the Commencement Date, and continuing until and expiring after ten (10) years. 2 75A-22