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HomeMy WebLinkAboutRes.2983.04-18-2016BILL NO. 16-77 RESOLUTION NO. A RESOLUTION APPROVING A REDEVELOPMENT AGREEMENT IN CONNECTION WITH A PORTION OF THE RPA 1 REDEVELOPMENT PROJECT DESCRIBED IN THE REDEVELOPMENT PLAN FOR THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT, CAPE GIRARDEAU, MISSOURI, 2015 WHEREAS, the City Council has approved the "Redevelopment Plan for the Downtown Tax Increment Financing District, Cape Girardeau, Missouri, 2015" and the "RPA 1 Redevelopment Project" described therein; and WHEREAS, the City desires to enter into a redevelopment agreement with Old Town Cape Historic Landmark Preservation Group, LLC (the "Developer") with respect to the completion of a portion of the RPA 1 Redevelopment Project consisting of the renovation of the H&H Building and the Marquette Center for hotel and restaurant use and the renovation of the Marquette Tower for office and retail/restaurant uses (collectively, the "Developer Project"); NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: ARTICLE 1. The City Council hereby finds and determines that it is necessary and desirable to enter into a redevelopment agreement with the Developer in substantially the form of Exhibit A attached hereto in connection with the Developer Project (the "Redevelopment Agreement"). The City Manager is hereby authorized and directed to execute the Redevelopment Agreement on behalf of the City. The City Clerk is hereby authorized and directed to attest to the Redevelopment Agreement and to affix the seal of the City thereto. The Redevelopment Agreement shall be in substantially the form attached to this Resolution, which Redevelopment Agreement is hereby approved by the City Council with such changes therein as shall be approved by the officers of the City executing the same. ARTICLE 2. The officers, agents and employees of the City are hereby authorized and directed to execute all documents and take such steps as they deem necessary and advisable in order to carry out and perform the purpose of this Resolution and the Redevelopment Agreement. M ARTICLE 3. The sections of this Resolution shall be severable. If any section of this Resolution is found by a court of competent jurisdiction to be invalid, the remaining sections shall remain valid, unless the court finds that: (a) the valid sections are so essential to and inseparably connected with and dependent upon the void section that it cannot be presumed that the City Council has or would have enacted the valid sections without the void ones; and (b) the valid sections, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent. ARTICLE 4. This Resolution shall take effect and be in full force after its passage by the City Council, PASSED AND ADOPTED THIS M 'DAY OF _, 2016. arry E. ediger, Mayor ATTEST: /mss ruce Tayl , Deputy City Clerk Ary 2 REDEVELOPMENT AGREEMENT This REDEVELOPMENT AGREEMENT (the "Agreement') is made and entered into as of 2016 (the "Effective Date") by and between the CITY OF CAPE GIRARDEAU, MIS OURI. a home-rule city organized and existing under the laws of the State of Missouri (the "City"). and OLD TOWN CAPE HISTORIC LANDMARK PRESERVATION GROUP, LLC. a limited liability company organized and existing under the laws of the State of Missouri(the"Developer"). RECITALS: 1. The Real Property Tax Increment Allocation Redevelopment Act. Sections 99.800 to 99.865 of the Revised Statutes of Missouri. .as amended (the "Act"). authorizes municipalities to undertake redevelopment projects in blighted, conservation or economic development areas, as defined in the Act. 2. Pursuant to Ordinance No. 4803. adopted on January 4. 2016. the City Council approved the"Redevelopment Plan for the Downtown Tax Increment Financing District, Cape Girardeau. Missouri. 2015" (the "Redevelopment Plan") and designated the redevelopment area described therein (the "Redevelopment Area")as a"redevelopment area"pursuant to the Act. 3. Pursuant to Ordinance No. 4844, adopted on April 18. 2016. the City Council approved a redevelopment project (the "RPA I Redevelopment Project") for the portion of the Redevelopment Area described in the Redevelopment Plan as "RPA I." 4. In response to a request for proposals. the Developer submitted a proposal to the City regarding a portion of the RPA I Redevelopment Project (the "Proposal"). which Proposal includes the redevelopment of the building known as the Marquette Tower for office and retail/restaurant uses and the redevelopment of the H&H Building and the Marquette Center for hotel and restaurant uses(as more fully described on Exhibit A. the "Developer Project"). 5. The Proposal requests tax increment financing assistance to reimburse the Developer for a portion of the costs of completing the Developer Project. 6. Pursuant to Resolution No. 2983. adopted on April 18. 2016. the City Council has authorized the City to enter into this Agreement to provide the terms and conditions upon which the Developer will construct the Developer Project and be reimbursed for certain costs. as contemplated by the Act and the Redevelopment Plan. AGREEMENT NOW, THEREFORE. in consideration of the premises and mutual promises contained herein and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged. the parties hereto agree as follows: Section 1. Development. (a) The Developer hereby agrees to complete the Developer Project described on Exhibit A attached hereto at its own expense no later than December 31. 2018. Completion of the Developer Project shall be deemed to have occurred when the City issues occupancy permits pursuant to its municipal code for the hotel to be constructed in the H&H Building and Marquette Center and at least 30.000 square feet of tenant space in the Marquette Tower. Following receipt of the last occupancy permit. the Developer shall submit a Certificate of Reimbursable Project Costs in substantially the form attached hereto as Exhibit B evidencing the costs of the Developer Project for which the Developer requests reimbursement pursuant to Section 5 below. (b) The City shall review the Certificate of Reimbursable Project Costs and provide written objections. if any. to the Developer within 30 days from receipt thereof. If any objections are provided. the Developer shall cure such objections and resubmit the Certificate of Reimbursable Project Costs. If no objections are provided within 30 days of receipt, the Certificate of Reimbursable Project Costs shall be deemed approved by the City on the 31st day following receipt (unless affirmatively approved by the City prior to such date). Section 2. Standards; Parking. (a) The Developer will complete the Developer Project according to all applicable federal. state and local ordinances, laws. regulations and codes. The City may inspect the Developer Project in accordance with the applicable federal. state and local ordinances, laws. regulations and codes to ensure proper completion thereof. (b) The City will take such actions as may be reasonably required to ensure that the on-street diagonal parking on the east side of the 200 block of N. Fountain Street is available to serve the Developer Project. Section 3. Submission and Approval of Construction Plans. The Developer shall submit construction plans for the Developer Project to the City as follows: (a) Initial Approval. The Developer will submit construction plans for the Developer Project and the City will review such plans for compliance with all applicable laws. statutes and ordinances. rules and regulations. including but not limited to the safety and zoning regulations of the City. The Developer will not begin the Developer Project until it has received all requisite approvals from the City and other applicable agencies as required by federal, state, and local law, in accordance with a phased construction schedule agreed upon by the City and the Developer. (b) Changes. The Developer may make changes to the construction plans in accordance with federal, state, and local law. Section 4. Release and Indemnification. (a) Notwithstanding anything herein to the contrary. the City, its governing body. officials. agents. employees and independent contractors shall not be liable to the Developer for damages of any kind or nature whatsoever if any ordinance adopted by the City or transaction completed by the City in connection with this Agreement is declared invalid or unconstitutional in whole or in part by the final (as to which all rights of appeal have expired or have been exhausted)judgment of any court of competent jurisdiction, and by reason thereof either the City is prevented from performing any of the covenants and agreements herein or the Developer is prevented from enjoying the rights and privileges hereof. (b) The Developer releases from and covenants and agrees that the City and its governing body, officials, agents. employees and independent contractors shall not be liable for, and agrees to indemnify and hold harmless the governing body. officials. agents. employees and independent contractors thereof against. any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the construction of the Developer Project. except as such may be caused by the willful misconduct or negligence of the City. its governing body. officials. agents. employees or independent contractors. (c) The Developer agrees to indemnify, defend and hold harmless the City. its governing body, officials, agents. employees and independent contractors from and against any and all suits, claims and attorneys' fees resulting from, arising out of, or in any way connected with (i) the construction of the Developer Project or (ii) the negligence or willful misconduct of the Developer, its managers. officials. agents. employees or independent contractors in connection with the management. development. redevelopment and construction of the Developer Project, except as such may be caused by the willful misconduct or negligence of the City. its governing body. officials, agents. employees or independent contractors. (d) The Developer agrees to indemnify. defend, and hold harmless the City. its governing body. officials. agents. employees and independent contractors from and against any and all claims. demands, costs. liabilities. damages or expenses. including reasonable attorneys' and consultants' fees. investigation and laboratory fees. court costs and litigation expenses. arising from: (i)any now-existing or hereafter-arising violation. actual or alleged. or any other liability. under or in connection with any environmental laws relating to any products or materials previously, now or hereafter located upon. delivered to or in transit to or from the Developer Project in connection with the construction of the Developer Project. regardless of whether such violation or alleged violation or other liability is asserted or has occurred or arisen before the date hereof or hereafter is asserted or occurs or arises and regardless of whether such violation or alleged violation or other liability occurs or arises as the result of any act. omission, negligence or misconduct of the City or any third party or otherwise: or(ii) any breach. falsity or failure of any of the representations. warranties, covenants and agreements of the like. (e) The City and its governing body. officials, agents. employees and independent contractors shall not be liable for any damage or injury to the persons or property of the Developer or its • officers. agents. independent contractors or employees or any other person who may be about the Redevelopment Area or the Developer Project due to any act of negligence of any person. except as such may be caused by the willful misconduct or negligence of the City. its governing body. officials. agents. employees. or independent contractors. (f) No member of the governing body officials. agents, employees or independent contractors of the City shall be personally liable to the Developer in the event of a default or breach by any party under this Agreement. (g) All covenants, stipulations. promises. agreements and obligations of the City contained herein shall be deemed to be the covenants. stipulations. promises. agreements and obligations of the City and not of its governing body. officials. agents. employees or independent contractors in their individual capacities. - 3 - Section 5. Installment Payments by the City. (a) For purposes of Sections 5 and 6 of this Agreement. the following terms shall have the following meanings: "Available TIF Revenues" means 90%of the incremental real property taxes and, subject to annual appropriation by the City Council. economic activity taxes described in Sections 99.845.1(2)(a) and 99.845.3 of the Act. respectively, generated from the Developer Project and deposited in the City's Special Allocation Fund; provided, however. (i) the City shall have no obligation to include incremental utility taxes (if any) within this definition unless the Developer provides the City with copies of utility bills from businesses located in the Developer Project prior to the end of the applicable Calculation Period. (ii) the City Council may or may not, in its sole discretion, declare as "surplus" pursuant to the Act any economic activity taxes attributable to businesses that relocate into the Developer Project from elsewhere in the City and (iii) no revenues that are subject to a challenge or protest shall be included in the definition of Available TIF Revenues until such challenge or protest is resolved. "Calculation Period" means initially, the period from the Commencement Date to the last day of the second month preceding the first Payment Date (i.e.. if the Commencement Date is January I. 2017 and the first Payment Date is May I. 2017. the initial Calculation Period runs through March 31. 2017); and thereafter. each period from the end of the previous Calculation Period to the last day of the second month preceding the next Payment Date, except that that the Calculation Period for the April 17. 2039 Payment Date will be from the end of the penultimate Calculation Period to February 28. 2039. "Commencement Date" means the first day of the month following the first month in which the City receives sales tax revenues generated from the Developer Project. "Payment Date" means every May I and November 1 following the Commencement Date and on April 17, 2039 (i.e.. the date that is 23 years from the approval of the ordinance approving the RPA 1 Redevelopment Project). "Reimbursable Developer Project Costs" means the costs of the Developer Project identified on the Certificate of Reimbursable Project Costs approved by the City in accordance with this Section in the maximum amount of$2,497.242 plus interest on such costs accruing at a rate of- 3.0% per annum (assuming a 30/360 year) from the date that the Certificate of Reimbursable Project Costs is approved or deemed approved by the City pursuant to Section 1. (b) On each Payment Date, the City shall apply the Available TIF Revenues during the preceding Calculation Period as follows: (i) The sum of$1,000 shall be retained by the City as an administrative fee: and (ii) The remaining Available TIF Revenues shall be paid to the Developer or its designee for the reimbursement of the Reimbursable Developer Project Costs. On each Payment Date. the City shall provide the Developer with a written accounting showing the amount of Available TIF Revenues collected during the Calculation Period. the application of the 4 - Available TIF Revenues pursuant to this Section and the outstanding balance of the Reimbursable Developer Project Costs(including accrued, but unpaid interest)not yet reimbursed. (c) Notwithstanding anything to the contrary contained herein, in lieu of the payments described in (b). the City may issue bonds. notes or other obligations secured by Available TIF Revenues and use the sale proceeds of the bonds. notes or other obligations to pay the Reimbursable Developer Project Costs due to the Developer. The Developer shall cooperate in good faith if the City decides to pursue any such issuance of bonds. notes or other obligations. (d) The Developer shall cause all businesses generating taxable retail sales located in the Developer Project to provide a consent to the release of confidential sales tax information to the City, in a form acceptable to the City, for the limited purpose of preparing and approving budgets, appropriation requests and other actions contemplated by this Agreement. The Developer shall also require each "seller" (as that term is defined in Section 144.010(10) of the Revised Statutes of Missouri) located in the Developer Project to supply or cause to be promptly supplied to the City's Finance Director, monthly or quarterly sales tax information of each "seller" (as that term is defined in Section 144.01000) of the Revised Statutes of Missouri) in a form substantially similar to the sales tax returns filed by such seller with the Missouri Department of Revenue. Section 6. Annual Appropriation of Economic Activity Taxes. (a) The City's obligation to pay economic activity taxes pursuant to Section 5 is limited to those funds budgeted and appropriated for that purpose during the City's then-current fiscal year. The City agrees to cause the officials and employees in charge of drafting a budget to include the appropriations contemplated by this Agreement in the annual budgets presented to the City Council for its consideration. If Available TIF Revenues are generated. but economic activity taxes are not legally appropriated or otherwise legally made available to make the required payments by this Agreement. the City must immediately post notice of such event on the EMMA system maintained by the Municipal Securities Rulemaking Board (or if the EMMA system has been discontinued. a system nationally recognized for communicating material events relating to municipal bonds). (b) The obligation of the City to pay economic activity taxes hereunder constitutes a current expense of the City. is from year-to-year. and does not constitute a mandatory payment obligation of the City in any fiscal year beyond the then-current fiscal year of the City. The City's obligation to pay economic activity taxes hereunder shall not in any way be construed to be a debt of the City in contravention of any applicable constitutional. charter or statutory limitation or requirement concerning the creation of indebtedness by the City. nor shall anything contained herein constitute a pledge of the general credit, tax revenues, funds or moneys of the City. Section 7. Representations, Warranties and Covenants. (a) By the City. The City represents. warrants, covenants and agrees as a basis for the undertakings on its part contained herein that: (i) The City is a home-rule City organized and existing under the laws of the State of Missouri and its Charter. and by proper action has been duly authorized to execute, deliver and perform this Agreement. (ii) To the best of the City's knowledge. there are no lawsuits either pending or threatened that would affect the ability of the City to perform this Agreement. (b) By the Developer. The Developer represents. warrants, covenants and agrees as the basis for the undertakings on its part herein contained that: (i) The Developer is a limited liability company duly organized and existing under the laws of the State of Missouri. and has power to enter into. and by proper action has been duly authorized to execute. deliver and perform. this Agreement. • (ii) Neither the execution and delivery of this Agreement. the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement. conflicts with or results in a breach of any of the terms, conditions or provisions of any restriction, agreement or instrument to which the Developer is now a party or by which the Developer is bound. (iii) There are no lawsuits either pending or threatened that would affect the ability of the Developer to proceed with the completion or operation of the Developer Project. (iv) The Developer agrees to maintain commercial general liability insurance for the Developer Project in a policy amount of not less than the then-current absolute statutory waivers of sovereign immunity in Sections 537.600 and 537.610 of the Revised Statutes of Missouri, as amended, as may be revised annually by the Missouri Department of Insurance. The Developer further agrees to name the City as an additional insured with respect to such policy and to annually provide evidence of such insurance policies to the City. (v) The Developer agrees to annually provide evidence of contractual liability insurance (in form and substance reasonably acceptable to the City's legal counsel) that insures the Developer's obligations to indemnify the City. as provided in this Agreement. Section 8. Termination. This Agreement shall terminate upon the earliest of any of the following: (a) the hotel portion of the Developer Project is vacant for more than twelve (12) consecutive months (after the first three (3) consecutive months of vacancy, the Developer shall commence monthly meetings with the City to discuss efforts to fill the vacancy until such time as the vacancy is filled or this Agreement is terminated): (b) the office/retail/restaurant portion of the Developer Project has greater than 75% vacancy for more than twelve (12) consecutive months (after the first three (3) consecutive months of reaching threshold vacancy. the Developer shall commence monthly meetings with the City to discuss efforts to fill the vacancy until such time as the vacancy is filled or this Agreement is terminated): (c) the satisfaction of all payments due under Section 5(b): or (d) April 17. 2039. -6 - Section 9. Default and Remedies. (a) Events of Default. The following shall be events of default ('Events of Default') with respect to this Agreement: (i) If any material representation made by a party in this Agreement. or in any certificate. notice, demand or request made by a party, in writing and delivered to the other party pursuant to or in connection with this Agreement proves to be untrue or incorrect in any material respect as of the date made: (ii) Breach by a party of any material covenant. warranty or obligation set forth in this Agreement: or (iii) Failure to maintain the hotel included in the Developer Project in a manner that would qualify it as a "Midscale" or higher hotel on the STR U.S. Chain Scales (or similar hotel rating service if the STR Chain Scales is no longer produced). For reference, the 2015 STR Chain Scales can be found at: http://www.str.com/Med i a/Default/Documents/STR_Chai n_Scales.pdf. (b) Remedies on Default. In the case of an Event of Default by a party hereto or any successor to such party. such party or successor shall, upon written notice from another party. take immediate action to cure or remedy such Event of Default within sixty (60) days after receipt of such notice. If the Event of Default is not cured or remedied within such sixty (60) day period (or, in the case of Events of Default that cannot be cured within a sixty (60) day period, the defaulting party does make reasonable process toward curing the default and does not notify the aggrieved party of when default will be cured). then the aggrieved party may terminate this Agreement or institute such proceedings as may be necessary or desirable in its opinion to cure or remedy such default, including but not limited to, proceeding to compel specific performance by the party in default of its obligations. (c) Other Rights and Remedies of Parties: Delay in Performance Waiver. (i) Any delay by a party in instituting or prosecuting any actions or proceedings or otherwise asserting their rights under this Agreement shall not operate to act as a waiver of such rights or to deprive them of or limit such rights in any way (it being the intent of this provision that the parties should not be constrained so as to avoid the risk of being deprived of or limited in the exercise of the remedies provided in this Agreement because of concepts of waiver. laches or otherwise): nor shall any waiver in fact made by a party with respect to any specific Event of Default by a party under this Agreement be considered or treated as a waiver of the rights of a party under this Section or with respect to the particular Event of Default, except to the extent specifically waived in writing by the other parties. (ii) The rights and remedies of the parties to this Agreement (or their successors in interest) whether provided by law or by this Agreement. shall be cumulative, and the exercise by any party of any one or more of such remedies shall not preclude the exercise by it, at the time or different times. of any other such remedies for the same Event of Default by another party. No waiver made by any party with respect to the performance. nor the manner of time thereof. or any obligation of another party or any condition to its own obligation under the Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation of another party or condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect to regard to any other rights of the party making the waiver or any other obligations of another party. (iii) Neither the City nor the Developer, nor any successor in interest, as the case may be. shall be considered in breach of. or in default of. any of its obligations under this Agreement or otherwise with respect to the Developer Project. or progress in respect thereto, in the event of delay in the performance of any such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not restricted to acts of God. acts of a public enemy, acts of federal, state or local government (other than the City). litigation instituted by third parties. acts of the other party. fires. floods, epidemics, quarantine restrictions, strikes. embargoes. acts of nature, unusually severe weather or delays of subcontractors due to such causes: it being the purpose and intent of this provision that in the event of the occurrence of any such delay. the time or times for performance of such obligations by the City or the Developer shall be extended for the period of the enforced delay: provided. that the party seeking the benefit of the provisions of this Section. shall within thirty (30) days after the beginning of any such enforced delay. have first notified the other party thereof in writing, of the cause or causes thereof, and requested an extension of the period of delay. Section 10. Amendment or Modification. The parties to this Agreement may amend or modify this Agreement only by written instrument duly executed by the parties hereto. Section 11. Third Party Rights. No person or entity who or which is not a part- to this Agreement will have any right of action under this Agreement. Section 12. Scope. This Agreement constitutes the entire Agreement between the parties. and no statements, promises or inducements that are not contained in this Agreement will be binding on the parties. Section 13. Severability. If any part. term or provision of this Agreement is held by a court of law to be illegal or otherwise unenforceable. such illegality or unenforceability will not affect the validity of any other part. term or provision. and the rights of the parties will be construed as if the part. term or provision was never part of this Agreement. Section 14. Transferability. This Agreement may not be assigned by the Developer without the express written approval of the City unless such assignment is (i) to an entity succeeding to all or substantially all of the business of the Developer or to an entity controlled by the Developer or under common control with the Developer(in which case the Developer shall provide notice to the City of such assignment within 10 days from the date of such assignment): (ii) made for the purpose of a collateral assignment by the Developer to secure loans. advances or extensions of credit to finance or from time to time refinance all or any part of the Redevelopment Project, or (iii) made by the transferee of any such collateral assignment to transfer such interest by foreclosure or transfer in lieu of foreclosure under such collateral assignment. Section 15. Notice. Any notice required or permitted by this Agreement will be deemed effective when personally delivered in writing or three (3) days after notice is deposited with the U.S. Postal Service. postage prepaid. certified, return receipt requested.and addressed as follows: - 8 - The City: City of Cape Girardeau 401 Independence Street Cape Girardeau. Missouri 63702 Attn: City Manager With a copy to: City of Cape Girardeau 401 Independence Street Cape Girardeau. Missouri 63702 Attn: City Attorney And: Gilmore & Bell. P.C. One Metropolitan Square 211 N. Broadway. Suite 2350 St. Louis. Missouri 63102 Attn: Mark D. Grimm. Esq. The Developer: Old Town Cape Landmark Preservation Group. LLC 1610 N. Kingshighway. Suite 301 Cape Girardeau. Missouri 63701 Attn: Jeff Maurer. Manager With a copy to: Spencer Fane LLP 2144 E. Republic Road Ste. B300 Springfield. Missouri 65804 Attn: S. Shawn Whitney. Esq. Section 16. Immunity. Nothing contained in this Agreement constitutes a waiver of the City's sovereign immunity under any applicable state law. Section 17. Jurisdiction and Venue. Personal jurisdiction and venue for any civil action commenced by either party to this Agreement shall be deemed to be proper only if such action is commenced in the Circuit Court of Cape Girardeau County. Missouri. The Developer expressly waives its rights to bring such action in or to remove such action to any other court whether state or federal. Section 18. Missouri Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Missouri. Section 19. Federal Work Authorization Program. Simultaneously with the execution of this Agreement. the Developer will provide the City with an affidavit and documentation meeting the requirements of Section 285.530. RSMo. Section 20. Counterparts. This Agreement may be executed in several counterparts. which shall constitute one and the same instrument. Section 21. City Fees. Simultaneously with the execution of this Agreement. the Developer shall pay the City the sum of$3.500 for legal and other fees and expenses incurred in connection with the preparation of this Agreement. 9 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and the City has caused its seal to be affixed hereto and attested as of the date first written above. CITY OF CAPE GIRARDEAU, MISSOURI 4• '9G dr ���� 1� a , Name: Scott A. Meye- kvi`7 Title: City Manager (SEv. SHS Wird* g - ATT�EST� $may Bv: 4' Ip &I-c OuDC_ Name: Gavle.,. Conrad Title: City C -rk OLD TOWN CAPE HISTORIC LANDMARK PRESERVATION GROUP, LLC By: d.+^/ tcLbr1 Name: JeI S Maw,er Title: Mancua, )ic ,,hsc OeuGupeii, LIG - 10 - EXHIBIT A DEVELOPER PROJECT DESCRIPTION Marquette Tower • Located on Parcel Nos. 211070009011000000 (338 Broadway) and 211070009013000000 (0 N. Fountain(PT LOT)/Parking). • Redevelopment of property to accommodate approximately 60.000 square feet of office and restaurant/retail uses. including interior demolition and rehabilitation and renovation of tenant spaces. building systems and common areas on floors 1-7. H&H Building/Marquette Center • Located on Parcel Nos. 211070008006001001 (400 Broadway. units I. 2. 3 and 5). 211070008006001002 (400 Broadway. unit 4). 21 1070008006001000 (400 Broadway, common area). 21 1070008004000000 (221 N. Fountain Street). and 21 1070008004001000 (0 N. Fountain (PT LOT)/Parking). • Redevelopment of property to accommodate an approximately 96-room hotel and accessory restaurant use, including roof replacement. tuckpointing. demolition of non-historic interior spaces and new interior buildout. • A-1 EXHIBIT B FORM OF CERTIFICATE OF REIMBURSABLE PROJECT COSTS Certificate of Reimbursable Project Costs TO: City of Cape Girardeau. Missouri 401 Independence Street P.O. Box 617 Cape Girardeau. Missouri 63702 Attention: Assistant City Manager Re: Marquette Tower/H&H Building/Marquette Center Project Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Redevelopment Agreement dated as of . 2016 (the "Agreement") between the City of Cape Girardeau. Missouri (the "City") and Old Town Cape Landmark Preservation Group. LLC (the "Developer"). In connection with said Agreement. the undersigned hereby states and certifies that: 1. Each item listed on Schedule I hereto is a Reimbursable Developer Project Cost that was incurred in connection with the completion of the Developer Project. 2. These Reimbursable Developer Project Costs have been paid by the Developer and are reimbursable under the Act and the Agreement. 3. There has not been filed with or served upon the Developer any notice of any lien. right of lien or attachment upon or claim affecting the right of any person. firm or corporation to receive payment of the amounts stated in this request. except to the extent any such lien is being contested in good faith. 4. All necessary permits and approvals required for the Developer Project are in full force and effect. 5. If any cost item to be reimbursed under this Certificate is deemed not to constitute a "redevelopment project cost' within the meaning of the Act. the Developer shall have the right to substitute other eligible Reimbursable Developer Project Costs for payment hereunder. 6. The Developer is not in default or breach of any term or condition of the Agreement. Dated this day of . 20 OLD TOWN CAPE HISTORIC LANDMARK PRESERVATION GROUP, LLC By: [Name]. [Title] B-1 REDEVELOPMENT AGREEMENT This REDEVELOPMENT AGREEMENT (the "Agreement") is made and entered into as of , 2016 (the "Effective Date") by and between the CITY OF CAPE GIRARDEAU, MISSOURI. a home-rule city organized and existing under the laws of the State of Missouri (the "City"). and OLD TOWN CAPE HISTORIC LANDMARK PRESERVATION GROUP, LLC, a limited liabilit company organized and existing under the laws of the State of Missouri (the"Developer"). RECITALS: 1. The Real Property Tax Increment Allocation Redevelopment Act. Sections 99.800 to 99.865 of the Revised Statutes of Missouri. as amended (the "Act"). authorizes municipalities to undertake redevelopment projects in blighted, conservation or economic development areas. as defined in the Act. 2. Pursuant to Ordinance No. 4803, adopted on January 4, 2016, the City Council approved the "Redevelopment Plan for the Downtown Tax Increment Financing District, Cape Girardeau, Missouri, 2015" (the "Redevelopment Plan") and designated the redevelopment area described therein (the "Redevelopment Area")as a"redevelopment area"pursuant to the Act. 3. Pursuant to Ordinance No. , adopted on April . 2016, the City Council approved a redevelopment project (the "RPA 1 Redevelopment Project') for the portion of the Redevelopment Area described in the Redevelopment Plan as'RPA 1.- 4. In response to a request for proposals. the Developer submitted a proposal to the City regarding a portion of the RPA 1 Redevelopment Project (the -Proposal"). which Proposal includes the redevelopment of the building known as the Marquette Tower for office and retail restaurant uses and the redevelopment of the H&H Building and the Marquette Center for hotel and restaurant uses (as more fully described on Exhibit A.the "Developer Project"). 5. The Proposal requests tax increment financing assistance to reimburse the Developer for a portion of the costs of completing the Developer Project. 6. Pursuant to Resolution No. , adopted on April , 2016, the City Council has authorized the City to enter into this Agreement to provide the terms and conditions upon which the Developer will construct the Developer Project and be reimbursed for certain costs, as contemplated by the Act and the Redevelopment Plan. AGREEMENT NOW, THEREFORE. in consideration of the premises and mutual promises contained herein and other good and valuable consideration. the adequacy and sufficiency of which are hereby acknowledged. the parties hereto agree as follows: CITY O CAPE GIRARDEAU APPLICATION FOR TAX INCREMENT FINANCING OR OTHER PUBUC INCENTIVES Applicant's Name: Old Town Cape Historic Landmark Preservation Group, LLC Street Address : 1610 N. Kingshighway, Suite 301 City/State/Zip: Cape Girardeau. MO 63701 Applicants' Federal Tax Identification Number(FEIN): 81-1782775 MITS/Missouri ID Number: n/a Name and Title of Responsible Officer: Mr. Jeff Maurer, Manager Telephone: 573-450-2285 (cell) E-mail: Jeff.Maurer JMaysonCapital.com Attorney for or Authorized Representative of Applicant: Ms. Mary Anne O'Connell/Husch Blackwell LLP E-mail: MarvAnne.00onnell(a`HuschBlackwell.com Telephone: 314-480-1715 Street Address: The Plaza in Clayton 190 Carondelet Plaza, Suite 600 St. Louis, MO 63105 Application Format: Please answer the following questions on a separate sheet of paper. Upon request, proposals will be kept confidential to the extent permitted by low. DEVELOPMENT TEAM: 1) Provide the relevant information on the Applicant's background and development experience. Demonstrate that the Applicant possesses the technical ability to complete and operate the project. Include resumes of key individuals assigned to the project. The Applicant is controlled by Scott Rhodes. Mark Rhodes. Jim Maurer and Jeff Maurer. Scott and Mark Rhodes (brothers) own and operate the Plaza Tire chain of retail tire stores across a 4-state region. They also control a General Contracting firm (Boulder Construction) and have a significant commercial real estate portfolio. Locally. they re-developed the southeast corner of William Street and S. Kingshighway with a CVS and new Plaza Tire location. They also developed the southeast corner of N. Kingshighway and Mount AuburnfLexington with Banterra Centre. a Plaza Tire store and a strip center. Jim and Jeff Maurer(father/son) own controlling interest in the Rhodes 101 Stop chain of convenience stores in southeast Missouri and southern Illinois. They also own a private investment firm (Mayson Capital: www.MaysonCapital.com) and have a commercial real estate portfolio. Locally, the Maurers developed Cape West Crossings (I-55. S. Mt. Auburn, Bloomfield). Regent's Parc and CityCentre. Scott Rhodes and Jeff Maurer are the primary contacts for the Applicant. Their . individual profiles are included in Exhibit A. 2) Identify the Applicant's consultants (i.e.,architect, civil engineer, legal counsel and other professionals) involved or proposed to be involved in the project. Provide addresses and other contact information for each consultant. Role Name a on Address Phone Architect Alvah 8630 Delmar,Suite 220 Levice Associates 314-991-5600 (Marquette Tower) Levine St.Louis,MO 63124 Architect Tim 319 N.4th Street,Ste.1000 Lawrence p Rowbottom S 63102 St.Louis,MO314-231-5700 (H&H Center) _-_ Chris 194 Coker lane Civil Engineer Koehler Engineering Koehler Cape Girardeau,MO 63701 573-335-3026 FITC Development Sliver Tree Jay 302 Campusview Drive,Ste.211 573-875-5151 Advisor Companies Burchfield Columbia,MO 65201 Historic Deb 29 South Ninth St. Preservation n/a 573-874-3779 Sheals Columbia,MO 65201 Consultant HTC Legal Coundl Spencer Fane 417-8881015 Shawn 2444 E.Republic Rd.Suite B300 Whitney Springfield,MO 65804 Elliott,Robinson& Jacob 2305 S.Blackman Road Suite D HTC Accounting 417-887-0585 Company,LLP Sanders Springfield,MO 65809 The Plaza in Clayton General Legal Husch Blackwell MaryAnne 190 Carondelet Plaza Suite 600 314-480-1715 Counsel O'Connell St.Louis,MO 63105 Real Estate Counsel Limbaugh Firm Nancy 407 N.Kingshighway,Ste.400 573-335-3316 Browne Cape Girardeau,MO 63701 3) Primary principal(s)and development team must be in good standing with the City,County, State and Federal governments, including:being current with taxes and fines owed,licensing is current and up-to-date and must not be in any outstanding disputes that may put the City in precarious situations. All principals and development team are in good standing the City, County. State and Federal governments. PROJECT DESCRIPTION: 4) Identify the location of the project by street address and parcel number(s). Project 1: Marquette Tower Property. LLC: 338 Broadway—Parcel#211070009011000000 0 N. Fountain(PT LOT 1)/Parking—Parcel#211070009013000000 Project 2: H&H Center Property. LLC: 400 Broadway Units 1. 2. 1 5—Parcel #211070008006001001 400 Broadway Unit 4—Parcel #211070008006001002 400 Broadway Common Area—Parcel#211070008006001000 221 N. Fountain Street—Parcel #211070008004000000 0 N. Fountain Street (PT LOT)/Parking—Parcel #211070008004010000 5) Describe the proposed project,including the size and scope and phasing of the proposed project. Include a site plan that illustrates the project(i.e., building uses, parking spaces, driveways,sidewalks,etc.)and,if available,a floor plan. The first proposed component of the project is the Marquette Tower Property. This part of the project involves the building known as the Marquette Tower, which would serve as the epicenter of the more broadly defined Marquette Tech District throughout downtown Cape Girardeau. The project would be anchored by Codefi. a co-working and technology incubator organization that began in summer 2014. The Marquette Tower could also be the location of two significant business and community development organizations, corporate offices for more than 10 business startups. a coffee shop. tapas and martini lounge, as well as two floors available for new office expansions. The project encompasses approximately 60.000 square feet and total project cost is forecast to exceed $3.6 million dollars. Exhibit B provides more details about the Marquette Tower Property. This exhibit can also be viewed at this link: http://bit.ly/1 SLVy4H The second component of the proposed project is the H&H Center Property. This project would include the renovation of both the H&H Building and the Marquette Center. These two properties would be combined to provide space for a 96-key branded hotel and a casual dining restaurant. The Applicant has already been awarded a license for a branded hotel in Cape Girardeau. The Applicant is in the process of transferring the license from another site to this project site. A downtown hotel was identified as a significant development opportunity in Cape Girardeau's Downtown Strategic Plan approved by the City Council in August.2009.The project encompasses just over 85.000 square feet and total project cost is projected at$17.5 million dollars for the real estate development components of the project. Exhibit C provides more details about the H&H Center Property. Proposed Phasing once building permits are obtained and financing in place: Marquette Tower Property, LLC o Phase 1: • May 2016—Demo to begin in Carriage House and Floors 1, 4, 5. 6. and 7. Remodeling of tenant spaces,building systems and common areas to follow as soon as architectural drawings are completed and permits are issued. o Phase 2: • October 2016 — Substantial completion of Phase 1 and remodel begins on floors 2,3 and 7. Projected completion of all construction renovation in Summer 2017. H&H Property LLC Development • May 2016—Site work begins along with exterior renovation(i.e.. H&H roof replacement, brick façade tuck pointing, etc.) • August 2016 — demolition of H&H interior that not is deemed historically relevant and start of construction renovation in Marquette Center • September 2016—start of construction on H&H interior build-out • Fall 2017— Hotel and Restaurant open 6) Identify the current owner(s)of the real property included in the project. If the Applicant and the current owner(s)are not the same entity,describe the relationship between such entities (i.e., related entities,Applicant has contraction option to purchase the property,etc.) The Applicant has contractual options executed with the current properties listed below. • 400 Broadway Units 1. 2. 3. 5—Parcel #211070008006001001 —Merriwether Investments • 400 Broadway Unit 4—Parcel #211070008006001002—Merriwether Investments • 400 Broadway Common Area—Parcel#211070008006001000—Merriwether Investments • 338 Broadway—Parcel#211070009011000000—Great Southern Bank • 221 N. Fountain Street—Parcel #211070008004000000—Great Southern Bank • 0 N. Fountain Street—Parcel#211070008004010000—Great Southern Bank • 0 N. Fountain (PT LOT I)/Parking—Parcel#211070009013000000—Great Southern Bank 7) Is the property currently zoned for the propose use? If not,what zoning change will be required? Yes, the property is currently zoned for the proposed use. STATUTORY EUGIBIUTY REQUIREMENTS: 8) State the need and justification for TIF assistance. Provide the"but-for"affidavit in the form attached. The Applicant has developed financial models for the Marquette Tower Property and the H&H Center Property. These models suggest the mixed-use commercial real estate project and the hotel/restaurant project are viable business models, subject to project costs being comparable with costs of similar projects elsewhere in town. In the case of these three historic buildings, however, the building ages and poor current conditions will require extraordinary renovation costs that make the projects unfeasible without the assistance of incentive programs. The total cost of the real estate renovation part of the project is estimated to be approximately$21.2 million. Our bankers have established the maximum amount they are willing to loan on these projects based on their underwriting standards. These maximum loan amounts are based on loan-to-value and debt service coverage ratios. Total senior debt is projected to be $7.3 million for permanent financing. The Applicant's financial models also anticipate proceeds from the sale of federal and state historic tax credits and New Market Tax Credits that could amount to as much as$7.5 million at the conclusion of construction. The Developer/General Contractor has also agreed to defer payment for a significant portion of their fees for up to 6 years. This allows these fees to be paid from operating cash flows after the construction is completed and the tenants and hotel begin operating. These deferred fees are projected to be $714k. Equity from Old Town Cape Historic Landmark Preservation Group. LLC is based on investor commitments that depend on projected returns being comparable with other commercial real estate investments with similar risk profiles and time lines. Based on the performance expectations set out in the financial models.the investors are prepared to contribute up to $3.3 million in cash for the real estate portion of these projects. While it is not directly relevant to this application, it is important to note that the investors are committing up to$3 million of additional capital for the hotel and restaurant operating companies to purchase all the fixtures. furniture and equipment required for those businesses. These two operating companies are the only tenants in the H&H Center Property and are therefore critical to the projected net rental income for the H&H Center Property. When considering the real estate part of this development project and the two operating companies that will occupy the H&H Center, the investors are contributing a substantial amount of cash equity, in addition to the capital provided by different incentive programs.to make this project happen. The Applicant's financial models project total costs of$21.2 million to acquire and renovate all three buildings for the proposed uses. The senior bank loans. proceeds from tax credit sales, deferred fees to Developer/GC and investor equity provide$18.8 million ($7.3 + $7.5 + $714k+$3.3). This leaves a gap of$2,497.242 in sources of funds for the project to proceed. This TIF application is a request for$2.497.242 (present value of 90%of incremental tax revenues)to close this gap and allow the entire development project to proceed. Exhibit D includes the"But-for'' Affidavit. 9) Attach a letter from a financial institution indicating(a)that the Applicant has sufficient financial resources to obtain the private financing for the project and(b)that the financial institution is committed to provide such private financing,subject to normal underwriting criteria. Financial institution commitment letter is provided in Exhibit E. PROJECT COSTS/FINANCING: 10) Identity sources,amount,and status of all debt financing and/or equity funding available to complete the project. With respect to each source of funds, identify a contact person who can verify such source. • Senior Bank Debt: $7.3 million o Southern Bank—Brian Rivenburgh BRivenburgh@BankWithSouthern.com o Commitment letter has been issued and is attached as Exhibit E. • Equity Funding: $3.3 million committed to real estate renovation o Old Town Cape Historic Landmark Preservation Group. LLC o Contact is Jeff Maurer(Jeff.Maurer 2 MaysonCapital.com) o Commitments have been made; funding planned for April 2016 11) Provide and outline the costs associated with the development of the proposed project(s). Construction budget are as follows: • Marquette Tower Property $3.616,455 • H&H Center Property $17,537.065 Additional details are provided in Exhibit F for both projects. 12) List the other public incentives,if any,which are being sought by the Applicant in furtherance of this project. Federal Historic Tax Credits State Historic Tax Credits Federal New Market Tax Credits 13) Provide a pro forma financial statement,showing the projected return on investment if the project is built without TIF assistance,and the projected return on investment if the project is built with TIF assistance. See pro forma financial statements in Exhibit G. Without TIF assistance, the internal rate of return (IRR)on cash flows for the 10-yr period projected in Applicant's financial models is -1.1%. With TIF assistance, the 1RR on cash flows is 6.3%. This application is based on Applicant receiving 90%of the projected incremental tax revenues for the entire 23-yr period. The gap is projected to be $2,497.242 plus interest (estimated at 7%over entire period) for the 23-yr period. See TIF schedule in Exhibit H. 14) Provide an estimate of the market value of all taxable personal property to be located at the project site following completion of the project. The Applicant estimates the hotel operating company(OTC Hospitality. LLC).a tenant in the H&H Center Property will be assessed similar to other local hotels at a rate of approximately $50 per hotel room for personal property tax. There will be additional personal property purchased by the three proposed restaurants in the overall project, but no estimates are available at this time. I hereby certify all the information in this application is true and complete to the best of my knowledge. I acknowledge submitting this application is not a guarantee of public assistance. Each proposal will be evaluated to determine how well it supports the City's objectives for the Redevelopment Area and if public incentives are warranted. The City may reject all or port of any redevelopment proposal. Approval of the redevelopment proposal or any port thereof will be mode in the sole discretion of City. !also acknowledge the public assistance through the use of Tax Increment Financing will be on a 'pay as you go'basis. t1/1 OVAR April 14, 2016 APPLICANT DATE TITLE: MANAGER COMPANY: OLD TOWN CAPE HISTORIC LANDMARK PRESERVATION GROUP, LLC Additional Information about Development Project Proposed Courtyard Hotel Marriott Tower (circa 1920s) }"• ;. MM�Mr..emMR..i+..unk, 1.,.,-v�" " , . ti^jv CopetlkuNrr,M. it ' , , ,I ' Ana. ' ". �:\. ni 4 • .:. ,,; � c:+ ...� .• I1. 1 •r - 1 111 )),\ t,, r __,---,, iii _ ..... ,. -- A )1 A . .� `' � ,If f tai-_ .. P • ^j OW: 1j I� ': , ..,;:,,,,,it-( 6 ' IV • •i' ,1111 Silk , ''-- - \\l ‘ \' 4M r Va.. r 1Sr N � --- .!.... w....., ... ..... .... ..., .. Aerial View of Site �: • Courtyard Hotel (red outline) • t � � / *"z+i � 1 • Marquette Tower (green outline) to .� �. _~ -- ® ,,•. a•I 8 =0 ?' , serve as epicenter of Marquette Tech , 1 a ! .Ic a J District (yellow outline) that features Marquette r er- .M L_: �` I Epicenter of Marqu core technology and media 400 Broadway 41 Tech District • I , so -' ' �+a , businesses in area `� �Ah ; J .. • • ; ; sF -:: y,li; 1 - i ' y1�}1 ,I• 1r (�, •'.`•rW.r.�.! 1�IY .,11.11,;11 : >y • 1 !:',7'- 14, s1 r �$ C8S N , 4 -" CbildrQ S g •t ; _ r /(-IJP_-- , • _ ` . I r„�� ,. . /,y u.t. .. ' ' --..__' at - , r l•f ■ 1•;144 wo.. I,6 1,..f . I a s' r4,,,/..,. •a,�I 400 P�ua 0 1• y r '`�.�. I/ /� 8 . i ^:• ,.} r, /■ 1 elasityna. itt' i 'sir.:111, ;6: -AL—: —::A..1' =_.. - :•1 11'47.V; I: ('' C 1 1 14.”:IIIII--.I'' t O •,• +''Lara:. ' •• -t.h..�h,� • t 411 el •• `A: M Fq�eL chD ri a l f. I 4 _ Tech & Me.o,t: tt • '' '} .,• y • r 11 , a1• f+ "1 ` Rust Co 1 _ , r ew mmunitatlon'5"/ -.. so, .� ''�d Q ,;11, ,' .",MR.1 :�' t� N spaper a. j et '..rLa. p. ..t: 1 L r t • n t Organizational Chart of Legal Entities • Local investor group Old Town Cape Historic • 't ohne." ,y. Landmark Preservation i eritage Developers, LLC Group, LLC Jeff Maurer / Jim Maurer • Scott Rhodes / Mark R ode • Initial planned capitalization of .1 illion Marquette Tower Property, I.IC. Mayson,Capital Partners,LLC tri i'a c I ll l' J 11 i f'ti t� Jeffrey J. Maurer President Mr. Maurer co-founded Mayson Capital Partners, LLC (Mayson Capi- tal) for placing private capital into small- and mid-market businesses and a commercial real estate portfolio. Mayson Capital investments vary widely in size and structure. Each investment opportunity is eval- .; uated in terms of its risk/return profile, its liquidity prospects and the --- quality of its management team. Goal congruency among management )1IL and stakeholders is a fundamental priority. * Mayson Capital's investment platforms include convenience stores, a r f regional bank, urgent medical care clinics, hospitality developments and a venture fund associated with a co-working business incubator in Cape Girardeau, Missouri. The current portfolio of passive investments includes a general contracting company, a smart grid technology provider,a biopharmaceutical company,a med- ical software and data warehousing firm,a fertilizer manufacturing business and a silica mine. Prior to founding Mayson Capital, Mr. Maurer held executive management positions with PAJCO, Inc. PAJCO operates a chain of convenience stores in southeast Missouri and south- ern Illinois branded as Rhodes 101 Stops and Mercato. Mr. Maurer subsequently led project teams on several commercial real estate developments in southeast Missouri, including Re- gent's Parc, Cape West Crossings, and CityCentre. He continues to participate directly in portfolio businesses and serves on the board of directors for several of these businesses. Mr. Maurer earned an M.B.A. from Columbia Business School in New York, NY and an M.B.A. from London Business School in London.UK. He also earned a B.A. in biology from Saint Louis University. Jeff lives in Cape Girardeau,Missouri with his wife, Lauren,who also earned M.B.A. degrees from Columbia Business School and London Business School. Jeff and Lauren have a son, Rennold, and daughter, Grayson. Mr. Maurer serves on the Board of Directors for Big Brothers Big Sisters of Eastern Missouri (BBBS-EMO)and is Chairman of the BBBS Regional Development Board. Jeff also partici- pates as a Big Brother. Mr.Maurer currently serves as Chairman of the Competition Commit- tee leading the 1 sT54K startup competition based in Cape Girardeau, Missouri. Contact information is: Cell: 573-450-2285 (preferred phone contact) E-mail address: Jeff.MaurergMaysonCapital.com December 2015 16111N.EingshigimitSai1e 301! 140 637111 Scott M. Rhodes Scott is co-owner of Plaza Tire Service, Inc. and The Rhodes Group. Plaza Tire Service. Inc. owns, and operates 58 retail tire stores throughout MO, IL, KY &AR, along with a whole- sale division. Plaza Tire Service is one of the 10 largest privately owned tire retailers in the country. The Rhodes Group is primarily a real estate holding and management company that owns various commercial and multi-family properties,throughout MO, IL, KY&AR. The group owns over 60 tire store properties, commercial office buildings, strip centers and mini storage complexes. In addition to real estate it also holds an interest in a commercial general con- struction company. Both Plaza Tire Service and The Rhodes Group was founded by Scott's father, Vernon "Pee- wee"Rhodes.Now Scott&his brother Mark own and manage Plaza Tire Service.The Rhodes Group is also managed by Scott& Mark and is co-owned with other members of the Rhodes Family. Scott lives in Cape Girardeau, Missouri with his wife Samantha and their two children. Scott and his family attend St Andrew Lutheran Church. Scott previously served on the Cape Girardeau Planning Commission for 7 years and was on the regional board for Big Brothers Big Sister of Eastern Missouri. Scott is a graduate of Southeast Missouri State University. Bill Amp 4 . MI 'R phi/ 4 4 r, �. 3 ftio., l y - r. ti ✓ IV ' b Irk ,itii . t .... , b f / 1 X11 i ,a• 'A • ', ; 4�. a. 1 F{,- IF 4. 0 * ** r r . th • ' 110 ;:x. •• . A a + • -1ll4\ *I 'ib i f 1 * i ♦" .. , ' 4 0.40 f t . • -ri al ilk ,.°. 4' t rk , .r.:-'' •- ,, OOP . lifff 14 -Alp i(411 Expansion Project pi ilw • Meeting the needs of a growing technology startup community. codefi E Wei 4 EXPANSION PROJECT u .. BACKGROUND ��:.... r i" ;001111. Codefi opened its doors in the historic Federal Building 4 -, --- in November, 2014 as the -_ . ..; . -------- ----.--- area's first co-working space and technology . ' -. incubator with a larger , Y '- ............. Ai vision for economic growth: 040,.4,„...4 ,resin. to be a catalyst to increase {--------, _____ the formation and growth ofY i 1 __ -.._ i technology-based < < -_ •ri v, companies in our region. T r -.-- „- - In just 15 months, Codefi , -1 and its affiliates have r -- I become a dynamic point of r'^'! convergence that attracts _- of talent, technologies, and Or All capital. I ,,... LONGTERM VISION Ade 4 Partners : a strong coalition of local private individuals, businesses and statewide organizations have invested in this vision tjja*/11/ ‘shiov CAPE GIRARDEAU AREA AttractingMAW!: Business and Industry rY codefi it:* .., ,. .,......r. ,.o „nun. Ginn-demi tree ('luunlrer t►I'('tinut•ret' . I .....diiihnidilliih..... 4): ilihiii i TRAVERSE 141+8Department of Economic Development VENTURES 14i THE cti——. BANK . MISSOURI OF MISSOURI st . r'. .: TECHNOLOGY our hometown commitment to yowl " ''' CORPORATION Programs : =nationally recognized technology-focused initiatives, incentives, and member-driven programming . code CAPE UIU 1 ifh1)11 1 MILLION CUPS® �i,.. . n i n n e ni u rnnn nwronnnari Startup StartLp4R ' NDitlEWeekend oogle for Entrepreneurs ► i Ca}ie Girardeau - Powered by CtioY;Ic for Entrepreneurs --- 15T50K startup competition x'50 K startup competition Get Started and Connected in Cape A competition that awards promising startups up to $50,000 in the form of non-dilutive capital. Winning companies are connected to a network of successful entrepreneurs and ARCH receive extensive pro - bono GRANTS support services. Endorsed by Arch Grants, STL. code CAP E Informal IT Education for the Future! An informal education system supported by practitioners and local technology companies to provide experience-based opportunities for individuals of various ages interested in coding and technology development. Youth programs began in October, 2016 National program sponsored by Facebook, Microsoft, Google, Verizon, and more. and continue with 2 this Spring. May, 2016 a full K-16 curriculum and activities will be announced. OUTCOMES FROM 15 Months 16 Growth to Build On codefi Members Since opening our doors we have grown from zero to 102 members with very low turnover. 102 12 $ 1 • 1 Members Tech Startups Million Private Investment Startups Our etlui is have resulted in the creation of 12 technology based startups. Freelancers Software Traverse Ventures Investment Local Companies Internet Businesses Co-investments Private investments in these 12 tech startups tops$1.1 million. Startups Tech Devices + $235,000 public Fastest Growing Membership Category: Private Offices, over 2,500 sq. ft. ('i) STARTUPS FROM 15 Months Growth to Build On codefi f ahUber for small markets. Set to launch in 1 6 Mobile and online pay and loyalty platform set to Missouri and 1 Texas market in 2016. launch in mid market and national retailers in 2016. car CONFLUX CAPE OIRARDEAU 0 Weekly report and skill development app Small device using dual laser and diffractive optics to that will revolutionize tech talent search. illuminate safe landing zone for emergency aircraft. la 11 _....... AP, 4..././4/ e00 :::::: .-- , --LZADII Predictive analytics tools designed for0 8 Patent-pending engineered bicycle some of largest health providers in US. nuts that are 100%theft proof. VARTECNA 'od) nutlocK p, EXPANSION PROJECT '1'' FUTURE HOME w � . ,..,,,'; ...���.. . ,,, i.,,. 7 , , :. ).-....<„, - . :, : ...., .‘ ,... - Ilk _ . . Given its success, Codefi is '' " ` :,,. .� ,1 ' ' ''' ^'1 , i ,positioned to continue • lot . : % 41 growing and become a hub ; �� 'i�; , for economic expansion that f 4h extends to the surrounding neighborhood: ' 1", • `1 ! . '`- , )1 I, ......„ , iY Iii' ,w 'l TIS, " �. 1.1t i MARQUETTE Tech District. • - 9 - 1 — `� '11:1 t r The NAR UETTE Tech ��� District is a dynaTi' n c point of cam , .`- . , ,1 rs,� convergence g „ittry. , :, r ��".`� �"�k`4r��. • 11„ �, �'' t - +� iconic downtown buildings �4, dd '• _�.i.' ` t`' A,ft,. ; Y ;1,4 11 ' to create densityin an , . r '...• r�- 4 f - emerging technology sector ; , . , i, that attracts talent, ' ;r � ' �,I ti ii :\. 1 ,',. . a. i��. 1 technologies, and capital. `--- • '4%* f4., r�,' ` , 14,44,itl. , '/' , ..“.. 'wo„r.4' s''•fire Nil” i. 6M •' �'.7. �� wta i/tlim it._ ..ail tr I IL. r '"1 a , • J!J► •'% l r1 -. i! ISUU IAlli it 1 1� ', j ' . • LONGTERM COMMITTMENT i. ,, The MARQUETTE Tech District, � Ianchored by Codefi , attracts , � nurtures and promotes the region 's 1 I ■� it technolocy economy through a � � � litilcombination of initiatives and MARQUETTE business incentives , private tech district business support and member- 'I— pJ �NTW'N CAPE driven programming . FASTER THAN WE 'VE EVER GONE . FURTHER THAN WE'VE EVER BEEN . RETAIL MEDICAL r,, EDUCATION ' „� Y INDUSTRIAL 6.4 ...r•-• A. .r If ILA ,?lk - • 11 TECHNOLOGY , -- _ ` S4 � Fi L`'� I w t�, ��' Jam , F '�� .t ,,�*.: d p 1 p.,.. ...,ot.z,i,T,L .,1 1 m h, t... , ... �yl� 0 w ,. VINIMIIIIS\e„ ' NTIV--4- S 'PO ., .E 'Tex r'� . .i�:,� r: �� ' i • r ii 1'; + ti, :Ail 'M Y 1 yyI 01117lit r: 4, , , — / . .141.4A444.7 ..• , L„,/,. ,s -N cri \,. dr, : , , i - _...., ,,,,,,,ii I .. ,'"4°W 's ,„" t T + *.' ,:,' -4s.....,r,,,,,,,,,t..... ., , ., , vs( ,..ill n fi Ott) � ,%,,,i '.2.4 i'�fte wfib•: :A, 'il V II- yaro Or ..,.� 1 r n s e' tii •�• • " • +► 4. , 4,1,........ " '- ro • yr • �r„'7rF,yam .-A. y..11( ' . 4•4 , ar •=,, /° *t_ 1 ESTABLISHING TECHNOLOGY SECTOR DENSITY along with education , retail , industrial , and medical services . .:v 11...,%41 { • i r 1 _ —_,•IN'I l.anova•r'•5 ..1.. tr t0 i $ 1 k , - j��c ,r.4 - • si- - ? - ti+/krrroi%e . Std' ,• - - �. s � ►. _ N-rFnrr.rl k'Q "" '' a l (I _Ir.@ w ::... :. ,, m1 .. �_iirtti� "'.r�"'"r`i.� ,� Y rMrAr !': i181 AiiipIr '►' _ _-r * .r. —x' •, '.'r 1 .. 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Ni.' *.• 41 t � by et it . w - . : ; r • • 1 t 't" ' `ter « ' "� 1 111 Illitt 1 y tom. -v_4.I-A.I.,1f4,.4,I, 01l MARQUETTE .,. _...._ 11 w ,k „.A...4i\ .! tech district i--- — •Ow6..1 '— .. ' ~4- R1 • + _ "� lir• \Y.! (lam'[ 4 GIGRBLT hERLL _ _ -"- ; P� .• _ 4. IF:i..11Z=1 /1.14 air NA ! I .. .., ,„,,,... . n. ,. T.,.,.. , . 1 1. .., ,. ... „. -- ,...,,,,...„. 4 44' .111/44 l�W` - ::-.0---,,::::::::M�1 il ""�r►: +, , p ir it ..�_- �,�_ z. rte ( ,, JY i .2,,M.1 Lisr,', ' 1 i •# 4 401A: ''.. '.S;(''..: r 4 , . 01G Guo jIi 4 •4 .. / �.:, � oRrAmer Ta O��,�0:v -'` E \„.. . PRIVATE FIBER NETWORK ACCESS Gigabit internet services at below market rates . 3X THE SIZE. 10X THE IMPACT. Codefi 2.0 I September 2016 - -94„. n iN 1., I ikilkil It 1 114 k. , -\\. . 1 fill 1�1 , ,0 1.. 1 • li,, ,1111 lip¶Ii"ItIi 11 �1 1 , 44, 1,. „,. 0z-z), 1,...Y ,,, .,... ill , , ,;, .f/fl \ r I ( ii' liki ;if ;111 Ilii �. I li� ��11 111 1 . i1 I I ,III ”"'•+.q, i����l � '�I '/111 11 isit' llkitt R. ' ;.. I, rfil 1 "ill ,:tvoiMRr i+ ,1, 1i1Z WI ill 1,11 .. , I 1111 � 1 LSI :'�� . 41 11I i� unul . Iitn ' t... By investing in a 19,000+ square-foot facility, Codefi will support more startup and tech-based businesses with more education and support and new youth and adult programs for coding. Our members and partners will have area's most tech-powered and modern space to continue growing the innovation and entrepreneurial ecosystem in southeast Missouri. The historic Marquette building and surrounding downtown Cape Girardeau is a prime location that allows Codefi to anchor the Marquette Tech District and build a united technology and startup community. ,� ■■•■. •••■■ ■ ■Fir i1111111111111111 •_ 1■ - �. Anse :- , , ii scodei ♦ r �flI !HHIIIflI! l ' I_ 5 ■. ! !.I iirill • 14.i I Z■m : •.M am —403 I µ. -ti_. • 32' •6TH FLOOR - 6,378 square feet = ! . . _ --- 1;1;1 i IWO 1mrrux r,H00 SOFT High-impact open wolc and avert space. 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U • 32' 5TH & 4th FLOORS - 12,756 l ) ii 111111111 1111115111 , 8,500 SC)FT•rentable private office space configured in 50, 125,250,+++spaces - 500 SQ FT.Shared conference rooms Spiral staircase to connect to 6th Floor ', ,' ■.■■■■■■■ I I. rrr • If . . 800 _ Rentable Spa 0 68' — 111 ; t I ' ...... ; n1111n11nn1111111111. � . y� all' . w 18' M • 4, 12' 700II • k1l,, *OP : � a 4 1. . . • • e 1.♦ , , • r .- 'i K'1•�I'.M --- . a s J H 1, 111111111r./a P.:- ■ .... •.. • • . .z...... ' 684 1225 18' .. I.. ..r.. . . .. -r..a'.. r ....r ,I1.r.7 i t, t"'' r 111111 111r1111111� 1111111111111111111111111 38' 68' • r,8 14 Elevator Entrances w- p-i m.111110..1 --„ -, , .. _ ,„ ., ,. 01011 09000 IP Ilk 100 110 011. 4001111F 461116._ Liii,... IIIIITh -71 4— orc imi ,, •Iiiillf.., ,411 rollial,;,, . // :M 110.11111111111. I ir. . i e elliiiimmil Mill : 1/2 -IIIIIL„Illit ilL11111a; - ,,,„,40.,..„.,,,,,or • .. .... 4,,,,-- ,.. , ivy. .--..„ "t ...- , it. gm. ••• . ini--..----wimi ri. 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"."- Or;# ; ir . I1 ft ,i ^ • ,, \ II/ 51 . n• brigil 1/: , :, POI i , I .3 M ! y 7 •�, , rid • M..I Art • . , ''s (:. , 1 ii Aht.. f e P.Ipr I,• , T It, ,410 1 �."iix'1'', ..� 1 ��„ J /11, fit 7 • •• • �' uS �. » •it y•.!♦,;`". '1• *. '11 ..1 ii,: • ;�" ' , '''f'1v4•Y- .tea', K� tv .."?ji:.'- ' �i1r Via':r .. ,"'.' "''�•:'•I�': q r °'�:s• r 't yrlr. 01/,.,J}.+ ----. ,. '. 4• 1`fir+i... MODERN , TECH -POWERED SPACES uth Floor Common Area Kitchen/Coffee Bar 1.•. y _111 ..,. ..... . ga, - • Alia .. .. • j V I fir r . i $ g -ip: . .III ...14 r s r, ,trn: v „, : 111 T fI"' 4 /1114 -4;` 1 * . 1 '4F-7-7-7-- ,-: 1/ 1 .1) T" / 00 41,.. 1 , 11114ir f y+.r. , f t7 � y r , X11 — I t d li 1% ItMlryr�.lyiii • { • a I. - �/ r - It t OF" IMINMEL C.)/ 1 '11.1 - irl 1 11\,y i . i1 1 !� t I .' Ii . ,• _ 1w ` 1 I •- ! 3, iii A.4, 0 ie I i MODERN , TECH -POWERED SPACES uth Floor Common Area Kitchen/Coffee Bar .. ..;:, ,,,,. .;,:.., err, w., , Ott be ,ni' 41,x,,; * u"" _ 1•,,,'"r rpt w .. _ n ri -i ale`.. 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NI 1 lia Oa i 'gi i: -4 II 111i- / ,,. ..,.-, ilia' Illiw.allo- ,116... 4' MODERN , TECH -POWERED SPACES Private Offices / ', 1 .6. \k,' .1 1.1r,, ,, . ..1. ',.0:. • y 1 lir / I —11 .11, • ' 111 I.; 1 ,‘ . ' : 144 I, ill i f 5,..1 1 ; 1.1.4!. ..,.., r'' .....' : ' ' I .. ii A '1'% • lir e. .e. , . ,t-,1 '. • t --- a ,. i• li ' 1, 1 916‘4:4 . ,,,, ,.., : . , , li,:, pIt..• -; 0,4 L. T.,...„ ''l 4,% • • ti 1 ✓J�r r - ' 0111 •4 n "'!.,• MODERN , TECH -POWERED SPACES ‘,. 441:::, . Small Conference Rooms ..... .. , . , .._ .. -ars, • . : .. . .404.6.0011p„ ..,. , . . rt # ' Prill"111111” MP.ODOM. . o . II iii" . it,M Y. yr r '•c Ort.... i r' a. • 1 MODERN , TECH -POWERED SPACES Small Conference Rooms ...... . • • - .:,.40,1C.,..f.- •',. ,.''....,. • . - • 1 71 1-111 .11111.1111 : s"..' I oil! 4 4-.. 7: 4 . -.. Iyr 'I:. �am ,• lit. _4.1 , ---,,, 1 'A 4':, :7'1' . ' :.1' -4::11HAII:1'.. ''' ,- art I -t•,_ l , 0004 ____, ,:ir,v,,, ' .' . • 44 - �. A4A . � • , . j , h -. _. is_, - .f it, j. y r �t•� '`yI 7. 1 77 ._1\1\'.'":. MODERN , TECH -POWERED SPACES Small Conference Rooms . ... E.,,,.. . . 4 0 illik ...........• ,, ,tfr4. ' . .'''.#111°M.7:111.41/411‘ - Al [[ 7 Ole? d ., 1 , , - 'li k '/ w i ,....• �t: i r. .4 ss illipli&— . ' l =; + � b: `' 0 .j ,4 it } • f _. 1, ,,. . i li f• i. i ow ,.#. .,.! ji , 1 t 1• 1 ' 1 if . rl .1 Vii` ll i I i t; 4' f`-''"•-,../' ,.'• i• lik; i I ._.1.1„,„.. .I....„..... .. .,,, ,,,,,t,.•00. ... .,0,•, ,,a.......--up-z.---__;„„- , , 1 ii 1 I � iiY� `. IJ ..f.. .1 4......f. IOW '416. i elk :.. view- 1......,--..... ..04:11011P,,'....71.-4000:,..-'''...,71P74111tOp, e W., • .dm.,Pk egill. 4 LIII _,A• M . r- MODERN , TECH -POWERED SPACES Small Conference Rooms AMID" ,., ,,.... Imp . .._ dempo., .... . _ _., .._ . ... -A ''' w .. ••• "' i--: NA • r tag. 11.0.40*--- Es . •2.4.,.0 :Illi iiii 1 ( ._ 1 a f e; .._ to • ri, ; IMlf�r t ■ • 1 w•. .+'.' ."'..- _ . Y i. I. { lirits, K 1Itot T MODERN , TECH -POWERED SPACES 6th Floor Game Room w u .4ompu R,"1y�� ,. A lh 4 4 • fl � 14 o w I c 9 'n ` P IN�� fir IA ,�+xa '� * iP, , „,:. 1 • P•44444 , i 7 : V 111. II I. .1Y �4 0.',, 7.1'WH. I. I +1 . .. i , : .i.a., .......- -,,, . , , , . . .. _____ ........... . ,,..10 ,..,„ r +' � . ,{fir � w . . sx w� ;„IVa-1,p:. s • p GOLDEN GATE : , „ . , •Y', 25 'TAYLOR STREET, SAN FRANCISCO, CA 94102 BOOK A TOUR MODERN , TECH -POWERED SPACES Phone Booths f . ,...,, I. 0 .„ . ,.. ., .1 . .. • : . I l( ' ! ,1; . 1 . 'EL I ,, ', . .- , . t , ....4, . . 1 . i . qr •' i . e.1- Arir . 1 . • k,.' . ._ ,, gektisp,..1 • 0 .• 4.;•1-, i4 11,4, *10111. ill i•,*' ii• ,, 4 . . t 0 I i R - I - • ir . r • It - ' • .. 0 .- •t 1 IL 111111 .1 . MODERN , TECH -POWERED SPACES Phone Booths I II ill' I Ilk' MODERN , TECH -POWERED SPACES 4 , . ., • . i, .---- . . ' 1 "" 11. 'i• ...'. .. - lib. I= A . ., . • 41 . , • 1i i or Am'.ft......1 Allba• fiii. 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Conceptual C�es�gn C,x Yagp `...V w.w H&H Building Marquette Center Floors 2-5 Floor 2 V/ i ill] -�\ �` 1 i / � . 1111 - ••i • KJ t Or,, OIQtl 3c •1 I ri n• Viii •i� i• f�� .�� Silk ,l! i� 1 I� t� - ''I.11111'i_ aim � r�I AA I s� I Ire, __=_ ��— • '`'-'—II . l an _ I. 4 .-- ,c:T. .." .4 — _ ^' iin ii : i 1 muse LJ:�iu 'I r !I: �' m s;runr �.�,_ _ 1 >s¢ana n+ar• Ill _ 1 -• - ' V�-I Y. 64E1r— Clin..7 r'.r 1 ten MS Sl _ �' I Illliill ' ■ '— J 1 'ir .•airs Q »' !:I 71, vQ h,1 r arl 01 �� ...7). rill• .r S' u I— 1 :! / ■ T .i Al T f_TV. OUT, Et151 • ack, I �Lf ....„ _ YL —f \ r7 • ��l on • 1"• MIA I i .!i iil 1. euft . .,, .. _,......,. 11 ql>D /....,, , 1l • -r / • / '��� leit17 „@ ' I Vi ,• . :,)r a, . •0 j;1 3, as IJ' ��eSWtiRHPSg4emyRenovationYMIewtiMtl N Conc.j ol0nnfPaikaye Floor Pana """" 812/1114115 A2 ,,....h.,Cadres Proposed Floorplan Notes • General Comments: We are proposing combining two buildings that are currently separated by a 15'alley Front bulking(drawn on left)is known as H&H Building,it is 5 levels plus a basement Back building(drawn on right)is known as Marquette Center;it is 2 levels plus a basement We propose to connect with a walkway on ground level along with a tower that will house a shared staircase and service elevator that can access all levels of bctn'zinldings For onentation,Broadway is on left side of drawing and Fountain Street is along bottom; North is to Right;Parking lot is along top and right side of building as shown in floorplans. • Basements(Sheet AO) Plan to incorporate as many small meeting roans as possitie in ri&H Budding;not likely to actually complete as many as shown here oue to varying ceiling heights Laundry and Fitness both included in Marquette Center • Ground Floor(Sheet Al) Proposed porte-cochere is as dose to Broadway as possible while not interfering with histoncafy relevant exterior facade;also allows us tc enter hotel in center so Lobby is flanked by Lounge/Theatre to nght lwhen entering)and Cafe/Bistro to left Existing bank vault is retained as'Marker;plan is to renovate hotel side of ground floor in H&H to original bank style from early 1900s Proposed stand-alone restaurant to be determined in other half of ground floor • Upper Floors(Sheet A2) IMPORTANT Floors 2-5 in'H&H;looks like an H'are stacked with identical floorplan Guest elevators include two existing in center of H and one in east side of rear building; we're adding a service elevator in new shaft between buildings Room Matrix Chart: King: 71 Q/Qi 18 Kung Suites 7 TOTAL 96 rooms STATE OF MISSOURI COUNTY OF CAPE GIRARDEAU AFFIDAVIT I,the undersigned, am over the age of 18 years and have personal knowledge of the matters stated herein. 1. I am a Manager of Heritage Developers,LLC,which is the Manager of Old Town Cape Historic Landmark Preservation Group, LLC(Applicant)and I am authorized to attest to the matters set forth herein. 2. Marquette Tower Property, LLC and H&H Center Property, LLC have contracts to purchase property located at 338 Broadway and 400 Broadway, respectively, in Cape Girardeau, Missouri. The property has not been subject to growth and development through investment by private enterprise,and would not reasonably be anticipated to be developed without the adoption of tax increment financing. 4414-911, 1 Printed Name: Jeffrey J. Maurer Subscribed and sworn to before me this 14th day of April, 2016. /43 .f�� Notary Public My commission expires on: PATRICIA S. SCHAEFER 1 Notary Public, Notary Seal State of Missouri Scott County Commission # 13456475 my Commission Expires August 09. 201 7 Southern BANK April 4, 2016 Mr.Jeff Maurer 1610 N Kingshighway, Suite 301 Cape Girardeau,MO 63701 Dear Jeff, Southern Bank is pleased to present to you the following conditional loan approval. The creation of a legally binding commitment or obligation is subject to the delivery, of documents requested by Southern Bank,final approval of the Borrower's request for a loan,and the execution and delivery of an agreement by both Borrower and Southern Bank to the transactions contemplated hereby,and the consummation of such transactions will be subject to the satisfaction of the conditions set forth therein. Borrower: H&H Property, LLC Guarantor: OTC Real Estate Fund,LLC OTC Hospitality, LLC Marquette Tower Property, LLC Loan Amount: $14,308,184 Purpose: The purchase and renovation of the H&H Building Rate: Prime floating plus .25% Fee: $15,000 Term: 24 months draw period,interest only during draw period Collateral: 400 Broadway,Cape Girardeau,MO 63701 Conditions: • Copy of acceptable environmental due diligence with regards to asbestos containment and lead based paint- • Verification and review of Marriott site approval. • Verification of Historical Tax Credits and final review of the structure and validity of those credits by the bank's attorney. • Verification of TIF application. • Review and approval of final construction cost sheet. 1205 South Main Street • Sikeston, Missouri 63801 • 573-471-1901 • fax 573-471-3301 www.bankwithsouthexn.com i - • Updated appraisal of project as is and subject to improvements by a qualified real estate appraiser acceptable to the bank with final collateral values being within the hank's loan policy. • Copy of contract to purchase to the properties to be provided. • Copy of Organizational Documents for borrower and all guarantors. • Copy of Investment Agreement for OTC Real Estate Fund, LLC • Copy of Investment Agreement for OTC Hospitality and Premier Management • Investors providing bank with a personal financial statements, even though they will not personally guarantee the loans. • Minimum upfront injection of cash into project with funds held at Southern Bank of$2,115.277 and back end cash into project of$769,590. • Covenants limiting investor distributions to only those which are needed for entity specific tax ramifications without prior bank approval. • DDA account to be maintained at Southern Bank for the operational accounts during and after completion. • Reviewed and acceptable title insurance showing first lien priority and free from all exceptions except those approved by the bank on the property to be issued for the benefit of the bank in an amount no less than the loan amount. • Title Company to handle all construction disbursements and inspections during the construction phase and documentation of all construction draws and lien waivers to be provided to the bank. • Monthly compliance updates related to historical tax credit compliance, as issued by third party. • Casualty insurance and flood insurance(if applicable) issued by insurance companies acceptable to the bank, insuring the collateral against loss for its replacement value, but in no event less than the loan balance with the bank named as mortgagee/loss payee. • Southern Bank agrees to the confidentiality of the proposed project but would reserve the right to actively seek a participating lender to participate in this project after all parties are in agreement to the proposal for financing of this project and sufficient information is provided to complete underwriting and submission for review by a participating lender. That lender would be approved by all parties prior that submission of a participation request. • Meets all applicable regulatory requirements from the Missouri Division of Finance and/or Federal Reserve Board. This proposal is provided solely for your benefit and shall not be reproduced, distributed, quoted, or otherwise made reference to except between the senior management, officers and legal counsel of the borrower. Please review and sign and send hack to Bank. Respec •. lv Bri. •urgh Vice President Southern Bank Agreed to as set forth above: By: Title: Date: This commitment must be accepted 90 days from the date of the commitment. Southern BANK April 4,2016 Mr.Jeff Maurer 1610 N Kingshighway, Suite 301 Cape Girardeau,MO 63701 Dear Jeff, Southern Bank is pleased to present to you the following conditional loan approval. The creation of a • legally binding commitment or obligation is subject to the delivery of documents requested by Southern Bank,final approval of the Borrower's request for a loan,and the execution and delivery of an agreement by both Borrower and Southern Bank to the transactions contemplated hereby,and the consummation of such transactions will be subject to the satisfaction of the conditions set forth therein. Borrower: Marquette Tower Property,LLC Guarantor: OTC Real Estate Fund, LLC H&H Property, LLC OTC Hospitality, LLC Loan Amount: $2,217,251 Purpose: The purchase and renovation of the Marquette Tower Property Rate: Prime floating Fee: $5,000 Term: 18 months draw period,interest only during draw period Collateral: 338 Broadway,Cape Girardeau,MO 63701 Conditions: • Review of leases and requirement of assignments of all leases. • Copy of acceptable environmental due diligence with regards to asbestos containment and lead based paint. • Verification of Historical Tax Credits and final review of the structure and validity of those credits by the bank's attorney. • Verification of TIF application. • Review and approval of final construction cost sheet. 1205 South Main Street • Sikeston, Missouri 63801 • 573-471-1901 • fax 573-471-3301 www.banIcwithsouthern.com • Updated appraisal of project as is and subject to improvements by a qualified real estate appraiser acceptable to the bank with final collateral values being within the bank's loan policy. • Copy of contract to purchase to be provided. • Copy of Organizational Documents for borrower and all guarantors. • Copy of Investment Agreement for OTC Real Estate Fund, LLC. • Investors providing bank with a personal and business financial statements,even though they will not personally guarantee the loans. • Minimum upfront injection of cash into project with funds held at Southern Bank of$1,253,769 and back end cash into project of$527,400. • Covenants limiting investor distributions to only those which are needed for entity specific tax ramifications without prior bank approval. • DDA account to be maintained at Southern Bank for the operational accounts both during and after completion. • Reviewed and acceptable title insurance showing first lien priority and free from all exceptions except those approved by the bank on the property to be issued for the benefit of the bank in an amount no less than the loan amount. • Title Company to handle all construction disbursements and inspections during the construction phase and documentation of all construction draws and lien waivers to be provided to the bank. • Monthly compliance updates related to historical tax credit compliance,as issued by third party. • Casualty insurance and flood insurance (if applicable)issued by insurance companies acceptable to the bank,insuring the collateral against loss for its replacement value,but in no event less than the loan balance with the bank named as mortgagee/loss payee. • Meets all applicable regulatory requirements from the Missouri Division of Finance and/or Federal Reserve Board. This proposal is provided solely for your benefit and shall not be reproduced,distributed, quoted,or otherwise made reference to except between the senior management, officers and legal counsel of the borrower. Please review and sign and send back to Bank. Respectfully, F Bri.i ' - •urgh Vice President Southern Bank Agreed to as set forth above: By: Title: Date: This commitment must be accepted 90 days from the date of the commitment. Exhibit F SOl R( unstruction Funding Maximum Construction Loan • $16,525,435 Construction Management Fee 90%r $1,335,625 Builder/Developer Fee Deferral 90% SO Equity Needed r $3,292,460 Total Project Cost • $21,153,520 SOURCES-Permanent Financing: Mortgage Loan • $7,344,766 Present.Value(PV)of IIF t+eimbtrsements • $2,497,242 Convection Management Fee Deferral $714,412 Budder/Developer Fee Deferral -- SO Final Sale O(Historic Tax Credits(Federal) • $2,844,950 Final Sale Of Historic Tax Credits(State) • $2,212,739 Final Sale ofNew Market Credit _` $2,414,782 Equity Needed 0 3,124,629 Total Project Cost S21,153,520 USES-Development Costs: Buildi�Ptrchase Price • $3,520,000_ Penn Loan Potts(.05 point) -- T-- 22,500 Construction Loan Potts(.50 poit) • S15,000 Hard Costs • 13,655,700 General Requirements 0 Builder's Overhead 0 Builder's Profit 0 Soft Costs r 881,703 Construction Period Interest-Basis 90,000 Construction Period lrterest-Non Basis 0 Contingency • 1,365,570 Ope.riling Reserve 0 Construction Management Fee • 1,603,047 Developer's Proft SO Total Project Cost r 521,153,520 Marquette Tower Property Cost Summary TOTAL PER SQ. FT. QRE N on.QRE HARD COSTS __ Buildings S 1,416,632 28.00 1,274,969 141,663 Project Contingency 10.00% 141,663 2.80 127,497 14,166 - 0.00 0 TOTAL HARD COSTS $1.558,295 • 30.80 1.402,466 155,830 . --- SOFT COSTS - - - - �- Legal & Accounting $ 35,000 0.69 17,500 17,500 Architectural 50,000 _ 0.99 45,000 5,000 Structural Engineering 5,000 . _ 0.10 4,500 500 Mechanical Engineering _ 5,000 0.10 4,500 500 Civil Engineering 2,500 0.05 0 2,500 Construction Loan Fees 7,500 0.15 7.500 0 Construction R/E Taxes 1,500 0.03 1,500 0 Construction Interest 15,000 0.30 13,500 1,500 Const Period/ Builders Risk Insurance 2,500 0.05 2,250 250 Cost Certification 20,000 0.40 20,000 0 Historic Preservation 13,500 0.27 13,500 0 NPS Fees 6,270 0.12 - i 6,270 Appraisal 3,500 0.07 - 3,500 0 Environmental Study 3,500 0.07 3,500 . 0 Marketing 8 Promotion -- _ - - 0.00; 0 , 0 !DED Fee 2.50% 10,667 " 0.21. 10,667 0 Perm Loan Fees 2,500 0.05 0 2,500 Operating Reserve __ - 0.00 0 0 Construction Management Fee - 10 00% 174,223 - 3.44 15.6,801 1 17,422 Developer Fee 0.00% - 0.00 0 ' 0 TOTAL SOFT COSTS $ 358,160 ' 7.08 304,218 53.942 TOTAL CONSTRUCTION COSTS 1,916,455 37.88 1,706.683 209,772 Marquette Tower 1,700,000 33.60: 0 1,700.000 . Land Value 200,000 ; 0.00' 0 0 TOTAL COST i ;3,616,455 71.48 1,706,683 1.909,772 H&H Center Property, LLC Cost Summary . _. TOTAL PER SQ. FT. QRE Non-QRE HARD COSTS Building-Marquette Center $ 3,018,968 35.35 2,766,218 252,750 Building-H&H $ 9,220,100 . 8,224,551 : 995,548 Project Contingency 10.00% 1,223,907 14.33 1,121,440 102,466 FFE (Mcmed to OP-CO) - 0.00 0.00 0 . TOTAL HARD COSTS $13,462,974 ' 157.63 12,112,210 1,350,764 SOFT COSTS Legal&Accounting $ 35,000 0.41 17,500 17,500 .... Architectural & Engineering 500,000 5.85 449,834 50,166 Construction Loan Fees 7,500 . 0.09 7,500 0 Construction R/E Taxes 12,000 0.14 12,000 0 Construction Interest 75,000 0.88 67,475 7,525 Const Period/ Builder's Risk Insurance 20,000 0.23 17,993 2,007Cost Certification 20,000 • 0.23- 20,000 0 Historic Preservation 13,500 0.16; 13,500 0 NPS Fees 27,151 0.32 - 27,151 Appraisal 3,500 0.04• 3,500 0 Environmental Study 3,500 0.04 3,500 0 Marketing& Promotion 0.00 0 0 DED Fee 2.50% 88,116 1.03 88,116 0 Perm Loan Fees 20,000 0.23: 0 20,000 Operating Resene - 0.00-7 0 0 'Cordruction Management Fee 10.00% 1,428,824 16.73, 1,285,468 - 143,356 Dftelopes Fee 0.00% - 0.00 0 • 0 TOTAL SOFT COSTS $ 2,254,091 v 26.39 1,986,386 267,705 .7TOTAL CONSTRUCTION COSTS 15,717,065 184.03 14,098,596 1,618,469 H&H Acquisition 1,420,000 , 16.63 0 1,420,000 Marquette Centre 400,000 . 4.68 0 400,000 TOTAL COST $17,537,065 205.34 14,098,596 3,438,469 Exhibit G Old Town Cape Historic Landmark Preservation Group, LLC 2013 2017 2018 2019 2020 2021 2022 2023 2024 2028 2028 Const Year1 Year2 Year Year4 Years Year Year Year8 Year9 Year 10 INCOME Con-inercialhcome $1,246,193 $1,332,771 $1,391,781 $1,427,663 51,541,506 $1,572,336 $1,603,782 $1,635,858 $1,668,575 $1,701,947 GROSS RENTAL INCOME 0 $1,246,193 $1.332,771 $1,391,781 $1,427,663 $1,541,508 $1,572,338 $1,603,782 $1,635,858 $1,608,575 $1,701,947 Other Income(CAM) 49 $182,138 $185,781 51897 _S193,287 $197,152 $201,098 $205,117 $209,220 $213,404 $217,672 Vacancy 0 ($205,062) ($205,062) ($205,062) ($205,0(2) ($205,062) ($205962) ($205062) ($205962) 0205,062) ($205062) EFFECTIVE GROSS INCOME 0 S1.223,269 $1,313,490 $1,376,216 $1,415,888 $1,533,596 $1.568,369 $1,603,838 $1,640,016 $1,676,917 $1,714,557 EXPENSES ,Properly.-Taxes .......... 0..........(5220,000) jS220,W0)„ ,($229,000), .._($220,000).,... ($220,000). ($220,000) ($220,Q00) (4220,000). i5210,000 ($22(900): Eievab[_ ......... . ..._.___.,...---.•---....-.--- ..----..... 0....._.... .($9,600) -. ($9,792) .(59,988), (S10,188). ($10,3911. -j$10,599)... ($10,811) ($1.1,027), ($11,248)1 ......($11,4731. Liability&Propertyhsixance _..._.___.... 0. .. .....($58,359) ($69_,) 171,763). Utilities-Common Areas 0 (518,317.) ._.._.1$J 1). ($19,427)- (520,610) (520610)- - ($21229)-----.- ($21.,885) ... ($22,521).... 023,19 7), (523,893). Repairs 8 Maintenance ...__ 0 ($12 8491 (513,028) ($13,419)-- _..($13,8211_ ($14,230) _--1$14,663) ($151031_.___.($15„,556) .. (S16,0231 ($16,5031 Trash Service 0 (52,400) ($2,472) ($2546) ($2,623)_ ($2,701) ($2,782) ($2,868) ($2,952) ($3,040) ($3,131) Janlonal-COmmonAreas 0 ($18,000) ,-1518-540 , _(519,096) ($.19,669) ($20259) ($20,867) -)521,493) .($22,138) ($22,802) (5234862 HVAC Mairtenance 0 ($2,530) _.._......(52806) ..- _.($2 684)............($2,761) 02.644..... __029P1..... _-..($3,021).__._ .($3111).;... (S3,205.),......._-($3,301), Professional Fee .,._._..----__...__........................._._...__ 0 ($25,297)'. _1$26,,056)......_($26838):....____1527,643),.___......_(528,472)'-_._...($29,326) ($30.,206) .....(531112);... ($32.045),__..-....($33,007). Marketing _........_L._. ...._.... _. 0 ..,. ($1,500)....- ($1,545).._..., ,._($1,591).. ...-.($1,699) ($1,688).__..... ($1,739) ._. (51,791)....._.... ($194 5) ($1,900)......._($19'7). Management Fee 1, ($42,000) ($42,000) ($42,0001 ($42,040) ($42,000) ($42,000) ($42,000) ($42,000) ($42,000)+ ($42,000) TOTAL EXPEN SE S (0) (5407.287) ($411,550) ($415,938) ($420,457) ($425,108) ($429,890) ($434,829) ($439,906) ($445,132)' ($450,514) NET OPERA71NONCOME 0 $815,982 $901,940 $960278 $995.431 $1,108,488 $1,138,471 $1,169,009 $1,200,110 $1,231,785 $1,264,043 CAPITAL COSTS Replacement Reserves 0 ($12,849) ($12,649) ($12,649) (512649) ($12,649) (S12,649) (512649) ($12,649) ($12,649) ($12,649) TOTAL CAPITAL COSTS 0 ($12,649) ($12,649) ($12,649) ($12,649) ($12,649) ($12,649) ($12,649) ($12,649) ($12,1349) (512,649) OPERATING CASH FLOWICAPITALQED NOI 0' $803,334 $889,291 $947,629 $982,783 $1,095,839 $1,125,823 $1,156,361 $1,187,462 $1,219,137 $1251,395 Debt Senice-Construction Loan 0 SO Debt Seance•Permanent Loan 0 ($521,089) (5521,089) ($521,089) ($521,089) ($521,089) ($521,089) (5521,089) ($521,089) ($521,089) ($521,009) CASH FLOW AFTER DEBT $0 $282,244 $368,202 $426,540 $481,893 $574,750 $604,734 5835,271 $668,372 $898,047 $730,305 Deferred ConsticbonMgnt Fee Remaining $714,412 $432,168 $63.966 Less Cash Fbw Applied to CM Fee ($282,244) (S368,202) ($63,966) Balance of Defeeed Cons Mgrrt Fee $432,168 $63,966 SO Deferred Derebper Fee Remaining S0 SO $0 SO Less.Cash Flow Applied to Dev.Fee SO SO SO SO Balance of Deferred De eloper Fee SO SO SO SO CASH FLOW AVAILABLE TO INVESTORS• (5,116 844) SO SO $362.574 $481,693 $574,750 $604,734 5635271 $866,372 $698,047 $730,305 . (RR 08 4.1% Old Town Cape Historic Landmark Preservation Group, LLC orr,,V3., r ,. -(11 'f.-t` ii 1.' i i`' (.i : k "i..re Ira 2013 2017 2018 2019 2020 2021 2022 2023 2024 2026 2026 Coml. Year Year2 Year3 Year4 Veer Year6 Year? Year8 Year9 Year10 INCOME Commercial income $1,248,193 $1,332,771 $1,391,781 $1,427,663 $1,541,506 $1,572,336 $1,603,782 $1,635,858 $1,888,575 $1,701,947 GROSS RENTAL INCOME 0 $1,246,193 $1,332,771 $1,391,781 $1,427,863 $1,541,506 $1,572,338 $1,603,782 $1,635,858 51,688,575 $1,701,947 Other icome(CAM) $182,138 $185,781 $189,497 $193,287 $197,152 2201,096 $205,117 $209,220 $213,404 $217,672 Vacancy 0 ($205,062) ($205,062) ($205,062) ($205,062) ($205,062)_ ($205,082)- ($205.062) ($205,062) ($205,062) 0205.062) EFFECTIVE GROSS INCOME 0 $1,223,269 $1,313,490 $1,376,216 $1,415,888 $1,533,596 $1,568,389 31,803,836 $1,640,018 $1,676,917 $1,714,557 EXPENSES Properly Taxes 0 , ($220,000) ($220,000) ($220.000) ($220,000) ($220,000) ($220.000) ($220,000) ($220,000), ($220,000) ($220,000) Elevator + 0 ($9.600) ($9,792), ($9,988) ($10188) ($10,391)` ($10,599) ($10,811) ($11,027) ($11.248) ($11,473) Liability 8 Property Insurance ., 0 ($55.000) ($56,650) ($58,350) ($60.100)._ (561,903), ($63,760), ($65.673) ($67,643) ($69.672) ($71,763) Utilities-Common Areas 0 ($18,312)^ 1518,8811 ($19,427) ($20.010) _1$20,610) ($21,229) ($21.885) ($22,521) ($23,197) ($23,893) Repairs&Maintenance ` 0 $12,649) ($13,028) 5513,419) ($13.821) ($14.236) __($14,663). ($15.103) ($15,556) ($16,023) ($16,503) ,Trash Service 0 ($2,4001. ($2,472) ($2,546) .($2,623) ($2,701) ($2,7825 ($28G6) . (52,952) 153,0401` ($3.131) Janitorial-CommonAreas _ 0 ($18,000)_ ($18,540)! ($19,096) ($19,669) ($20259) ($20,867) ($21,493)^ ($22,138) ($22,802) __($23,486) HVAC Maintenance 0 ($2,530) ($2,606); ($2,664) ($2,764) ($2,847) ($2,933) ($3,021) ($3.111) ($3,205) ($3,301) Professional Fee 0 ($25,297) ($28,056) (526.8381_ (527,643) ($28_472) 1$29,326) ($30,206) ($31,112) ($32.045) ($33,007) Marketing0 ($1,500) ($1,545) ($1,591) ($1,639) ($1,688) __($1739) ($1,791) ($1,845) -_ ($1,900) ($1,9571 Management Fee a 10) ($42,000) ($42,000) 442,000) ($42.000) ($42,000) ($42,000) ($42,000) ($42,000) ($42.000) ($42,000) TOTAL EXPENSES (0) ($407.287) ($411,550) ($415,938) ($420.457) ($425,108) ($429,898) ($434,829) ($439,908) (5445.132) ($450,514) NET OPERATING INCOME 0 $815,982 $901,940 $980,278 $995,431 $1,108,488 $1,138,471 $1,169,009 $1,200,110 $1,231,785 $1,264,043 CAPITAL COSTS Replacement Reserves 0 ($12,649) ($12,649) ($12,649) ($12,649) ($12.649) ($12,649) ($12,649) ($12,649) ($12,649) ($12,649) TOTAL CAPITAL COSTS 0 ($12.849) ($12,649) ($12.649) ($12,649) ($12,649) ($12,849) ($12,649) ($12.649) ($12,849) ($12,649) OPERATING CASH FLOW/CAPITALIZED NOI 0 $803,334 $889,291 $947,629 $982,783 $1,095,839 $1,125,823 $1,156,361 $1,187,462 $1,219,137 $1,251,395 Debt Service-Construction Loan 0 $0 Debt Service-Permanent Loan 0 ($521,089) ($521.089) ($521.089) ($521.089) ($521,089) ($521,089) ($521.089) ($521,089) ($521.089) ($521,089) CASH FLOW AFTER DEBT $0 $282.244 $368,202 $426,540 $461,693 5574.750 $604,734 $635,271 $666,372 $698,047 $730,305 Deferred Construction Mgmt Fee Remaining 5714,412 $432,168 $63,966 Less:Cash Flow Applied to CM Fee ($282.244) ($368,202) ($63,966) Balance of Deferred Cons.Mgmt Fee $432,168 $63,966 $0 Deferred Developer Fee Remaining $0 $0 $0 $0 Less:Cash Flow Applied to Dev.Fee $0 $0 $0 SO Balance of Deferred Developer Fee $0 50 $0 $0 CASH FLOW AVAILABLE TO INVESTORS it (3.124,629) 50 $0 $362,574 $461,693 $574,750 $604,734 $635,271 $866,372 $698,047 $730,305 IRR• 8.3% Exhibit H Old Town Cape Historic Landmark Preservation Group,LLC TIF Schedule of Cash Flows %requested of incremental property tax 90% County/City Sales Tax rate: 3.75% DOR payment discount: 3.00% Projected 2015 Projected Weekly NPV Base 1 2 3 4 5 Amount Revenues Amount 7.00% Marquette Tower-Property tax S - $ 992,016 $ 2216 $ 100,000 $ 88,005.60 $ 88,006 $ 88,006 $ 88,006 $ 88,006 Marquette Tower-EATS(BCB) S 7,500 $ 79,955 $ - $ 7,093 $ 7,093 $ 7,093 $ 7,093 $ 7,093 $ 7,093 Marquette Tower-EATS(Skal) $ 10,000 $ 106,607 $ - $ 9,458 $ 9,458 $ 9,458 $ 9,458 $ 9,458 $ 9,458 $ 1,178,577 H&H Building-Property tax $ - $ 907,376 $ 10,559 $ 100,000 $ 80,496.90 $ 80,497 $ 80,497 $ 80,497 $ 80,497 Marquette Center-Property tax $ - $ 198,075 $ 2,428 $ 20,000 $ 17,572 $ 17,572 $ 17,572 $ 17,572 $ 17,572 H&H/Center-EATS(restaurant) $ 20,000 $ 213,213 $ - $ 18,915 $ 18,915 $ 18,915 $ 18,915 $ 18,915 $ 18,915 $ 1,318,664 Amount of TIF reimbursements: $2,497,242