CARIBOU INDUSTRIES-2018 - Laserfiche WebLink

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The City would participate in profits upon sale of any portion of the project by the Developer, based on a formula that assures specified profit to the Developer. The City's participation % would be based on subsidy level and be triggered after agreed upon Developer's profit thresholds are met. Proposed formula and examples: Upon Sale of any portion of the project by the Developer, the City would participate in the sale proceeds as follow: If the Net Sale proceeds exceeds the Developer costs, including hard and soft costs, over the period of time the Developer has owned the project plus 15% profit, then the City shall share in the net profits based on the ratio of City's cost, plus land value, and the Developer's total costs. Example: Sale Price: $140 million Developer's costs: $100 million City's costs ($13m + $3m (land): $16 million Total costs: $116 million City Share Ratio 16/116=13.7% Developer's profit @15% of costs $100m= $15m Sales Price: $140 million -(DEV priority payment $1 00m+$15m=) $115m =Participation amount $25 million City share = 13.7% of $25m= $3.4m Developer share=$21.6m Developer's total proceeds = $115 m+ $21.6m = $136.6m Conditions that would apply if the Option to Purchase Public Parking is exercised: If the Developer exercises the Option and pays $15 million to the City to purchase the Public Parking, that cost will be added to the Developer costs for purposes of calculating the City Participation formula. To the extent that the Developer exercises the Option to purchase the Public Parking at $15 million, the participation formula will be adjusted to reduce the City's share by the amount equal to the City proceeds from the $15 million minus payoff of outstanding debt. Example: Assuming a principal balance of $10 million from $15 million = $5 million net. The participation formula would be reduced by that amount in the future. -7-