Loading...
HomeMy WebLinkAboutRES.2261.04-02-2007BILL NO. 07-64 RESOLUTION NO. / A RESOLUTION OF INTENT OF THE CITY OF CAPE GIRARDEAU, MISSOURI, TO ENTER INTO A DEVELOPMENT AGREEMENT WITH GREATER MISSOURI BUILDERS, INC., PURSUANT TO THE TERMS SET FORTH HEREIN, AND TO UNDERTAKE FURTHER ACTION IN CONNECTION WITH THE PROPOSED TOWN PLAZA REDEVELOPMENT PROJECT WHEREAS, Greater Missouri Builders, Inc. (the "Company") is the owner of record of approximately 16.4 acres at the northeast quadrant of South Kingshighway and William Streets, located in the City of Cape Girardeau, State of Missouri (the "Property"), which the Company intends to develop for commercial and retail uses; and WHEREAS, the Company desires to develop a 40,000 square -foot call center and 25,000 square feet of additional retail space on the Property, and to make certain related public improvements on and adjacent to the Property (the "Redevelopment Project"); and WHEREAS, the development of the 40,000 square -foot call center will generate approximately 350 to 500 new jobs for the community and will result in an increase in economic activity in the City; and WHEREAS, the Company seeks reimbursement for expenditures related to such public improvements through: (a) the imposition of a community improvement district sales tax in an amount not to exceed one percent (1%) pursuant to Sections 67.1401 to 67.1571 of the Revised Statutes of Missouri, as amended (the "CID Act"); (b) real property tax abatement on certain new and existing improvements on the Property pursuant to Chapter 353 of the Revised Statutes of Missouri, as amended ("Chapter 353"); and (c) reimbursement of a portion of the incremental increase in municipal and county sales tax revenues generated on the Property, all as provided by Missouri law (collectively, the "Economic Incentives"); and WHEREAS, following public hearings to consider and receive public comment related to the creation of the Town Plaza Community Improvement District and Town Plaza Redevelopment Area, on March 19, 2007, the City introduced Bill No. 07-56 designating a portion of the Cape Girardeau as a "blighted area" pursuant to Chapter 353, Bill No. 07-57 approving the Town Plaza Redevelopment Plan, in accordance with Chapter 353, and Bill No. 07-58 establishing the Town Plaza Community Improvement District in accordance with the CID Act; and WHEREAS, the City finds it necessary to finance the Redevelopment Project through the imposition of the Economic Incentives to offset extraordinary development costs, such that, without such Economic Incentives, the Redevelopment Project would not be economically feasible for the Company; and WHEREAS, the City acknowledges the benefit of the Redevelopment Project to the City as it will remediate certain blighting conditions existing thereon, create additional retail activity, and result in approximately 350 to 500 new jobs, all of which will serve the public interest and general welfare of its citizens; and WHEREAS, the City and the Company have agreed to a set of terms and conditions attached hereto and incorporated herein as Exhibit A (the "Term Sheet") by which the Redevelopment Project would be financed and constructed and the City desires to memorialize such agreement and demonstrate its intent to enter into a written development agreement with Company (the "Development Agreement") that substantially conforms to the Term Sheet. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: Section 1. The Recitals set forth above are hereby incorporated into this Resolution. Section 2. The Term Sheet, attached hereto as Exhibit A and incorporated herein by reference, is hereby approved. Section 3. The City hereby expresses its continued support for the Redevelopment Project and the Economic Incentives, and further expresses its intent to negotiate and enter into the Development Agreement with the Company pursuant to the terms and conditions set forth in the Term Sheet. Section 4. The City Manager and City Attorney are hereby authorized to continue negotiating the terms of the Development Agreement in accordance with the Term Sheet approved herein, and to take such further action as is determined reasonable and necessary in order to perform the undertakings contemplated herein. Section 5. This Resolution shall be in full force and effect immediately upon its date of passage and approval by the City Council. SSED AND ADOPTED THIS DAY OF 20 0 -f 114, 4 EXHIBIT A TERM SHEET (Attached hereto.) CAPE GIRARDEAU/TOWN PLAZA SHOPPING CENTER PROJECT Term Sheet Project Site: The intersection of Kingshighway and William Streets, 2136 William Street, in the City of Cape Girardeau, Missouri, consisting of Sears facility and Town Plaza Center. 2. Developer: 3. City: L 5. 11 7 Greater Missouri Builders, Inc. Cape Girardeau, Missouri. Initial Project: Conversion of existing Sears facility at Kingshighway and William Streets into two components — a 40,000 square -foot call center to be operated by National Asset Recovery Services, or NARS, and 25,000 square feet of additional retail space. The existing Town Plaza Center also contains 130,000 square feet of retail space that will be unaffected by the modifications to the Sears facility. NARS: The Developer has entered into lease agreement with NARS to occupy the rehabilitated Sears facility for a period of five years. The lease contains two three-year extensions that may be exercised at NARS' option. In the event that NARS does not exercise its option to renew the lease, or the lease is otherwise terminated absence any fault of the Developer, the Public Assistance will remain intact for the entire term of agreement. The Developer will use good faith efforts to comply with the terms of the lease. Initial Project Cost Elements: Facade improvements, parking facilities, roof reconstruction, HVAC required to convert the Sears facility from a single -use retail space to the NARS call center and multiple retail outlets. Subsequent Project(s): The Developer also reserves the right to make subsequent public improvements to the existing Town Plaza Center as dictated by market factors and demand and to request additional economic incentives to fund those subsequent public improvements. La 10 11 Cost Advance and Reimbursement: The Developer has paid or agrees to pay all costs necessary to acquire the Project Site and construct the Initial Project, and the City agrees to reimburse, or cause to be reimbursed, the Developer for those eligible costs incurred in the development of the Project. Public Assistance Requested: $3.6 million, consisting of Chapter 353 tax abatement, community improvement district sales tax and special assessment, and City and County incremental sales tax reimbursement in an amount not to exceed $1.2 million. Right to Substitute: In the event that (a) any cost is determined by the City not to be eligible for reimbursement in accordance herewith, or (b) a cost incurred by the Developer in any of the approved categories of costs is less than the amount for that category authorized by the City, then the Developer shall have the right to substitute other costs within one of the categories identified, such that the aggregate of all project cost elements may equal but not exceed $3.6 million. Chapter 353: The City will grant tax abatement pursuant to Chapter 353 of the Revised Statutes of Missouri as follows: (a) in the first ten years, 100% real property tax abatement on the new improvements to the Sears facility and 50% real property tax abatement on the existing improvements on the Sears site; and (b) for an additional fifteen years, 50% real property tax abatement on both new and existing improvements. The savings from the tax abatement will be used to reimburse the Developer for eligible costs incurred in the reduction of blighting factors present on the Project Site. To the extent the Developer transfers ownership of real property within the 353 development area to another user, including NARS, the Developer may, at its option, capture those savings by imposing a community improvement district (see Paragraph 12 below) special assessment equal to the property taxes otherwise payable if tax abatement had not been effectuated. 2 On March 5, 2007, the City conducted a public hearing to receive public comment on the proposed redevelopment plan, tax impact analysis and blighting study. The blighting determination and redevelopment plan approval are currently before the board as Bill Nos. 07-56 and 07-57, respectively. The estimated value of the tax abatement, adjusted for present value, is approximately $600,000, but is subject to change depending on the assessed value of the property after substantial completion. 12. Community Improvement District: The City will establish a "community improvement district' or "CID" encompassing both the Sears facility and the existing Town Plaza Center, pursuant to Sections 67.1401 to 67.1575 of the Revised Statutes of Missouri. The establishment of the district will authorize the imposition of a CID sales tax in an amount not to exceed one percent to be imposed on all retail activity within the boundaries of the district, including the 130,000 square feet of existing retail and the proposed 25,000 square feet of new retail. The sales tax revenues generated will finance the construction of additional public improvements on the Sears site and, as dictated by market demands, the Town Plaza Center, and, assuming the property is declared "blighted" pursuant to Chapter 353, to reconstruct the Sears facility to accommodate the NARS call center and additional retail space. It is expected that the CID will issue revenue obligations to evidence the reimbursement of eligible project costs. Debt service on such obligations will be paid with sales tax revenues and the pledged municipal revenues as set forth in Paragraph 13 below. On March 5, 2007, the City conducted a public hearing to receive public comment on the proposed community improvement district. The establishment of the CID is currently before the board as Bill No. 07-58. The estimated value of the CID sales tax revenues is $1.5 million, adjusted for present value, but is subject to change depending on actual taxable sales 3 activity within the CID and assessed value of the Project Site. The establishment of the CID will also authorize, at the Developer's sole discretion, the imposition of a CID special assessment as set forth in Paragraph 11 above. 13. Incremental Sales Tax Revenues: The City will contract with the urban redevelopment corporation to pledge an amount equal to 1.5% of the incremental increase in all taxable sales generated within the Project Area to reimburse the Developer for those project cost elements incurred in relation to public infrastructure and the elimination of blight, assuming the Chapter 353 project is also authorized. Further, the City represents that Cape Girardeau County, Missouri, has agreed to contribute an amount equal to 0.25% of the incremental increase in all taxable sales generated within the Project Area to reimburse the Developer. The base year on which the incremental increase will be measured is 2006. The reimbursement obligation will commence October 1, 2007, and will expire on the earlier of. (a) 20 years from the commencement date, or (b) the date on which the Developer has been reimbursed $1.2 million, plus applicable interest. The initial reimbursement will be due and payable January 1, 2008, and each reimbursement payment thereafter will be due and payable forty-five (45) days after the end of each subsequent calendar quarter for the term of the agreement. In each instance, the incremental sales tax revenues will be pledged, subject to annual appropriation, to the payment of debt service on the community improvement district obligations issued as set forth in Paragraph 12 above. If NARS exercises its option to extend the period of the lease, or if any other tenant occupies the Sears facility beginning in the sixth year of the reimbursement term, fifty percent (50%) of the gross rental revenues received by the Developer 11 from such tenant will be applied to reduce the principal and accrued interest outstanding on the City and County contributions. Such incremental sales tax revenues may be further offset by any future public incentives received by the Developer. Other than the consent of the County with respect to its reimbursement obligation, no consent or approval by any other governmental authority is required in connection with the acceptance of these terms or the performance by the City or the County of their obligations hereunder. On each payment date, the City shall provide the Developer with a notice setting forth the amount remaining on its obligation to the Developer; provided, however, that such notice will not prevent the Developer from reviewing and disputing the amounts set forth therein. 14. Subsequent Incentives: The Developer reserves the right to request additional incentives for the Project Site and property adjacent thereto depending on market conditions, tenant mix in the existing Town Plaza Center and other factors existing in the future. Such incentives may include but are not limited to: (a) the expansion of the Chapter 353 redevelopment area to include adjacent property as necessary to construct additional projects; and/or (b) the adoption of tax increment financing on the Sears facility, the existing Town Plaza Center and/or property adjacent thereto. Should additional incentives be authorized, any revenues generated would offset the City's obligations to reimburse the Developer from a portion of the incremental municipal sales taxes generated on the Project Site. 15. Construction Schedule: The Developer shall, upon execution of a Development Agreement, provide the City with a construction schedule setting forth the anticipated completion date. Upon substantial completion of the Initial Project, the Developer shall submit to the City and the County a Certificate of Substantial Completion, which may be recorded with the Recorder of Deeds for the County. 16. Dedication: Upon substantial completion of the Project, the Developer shall dedicate and convey to the City, the 5 17 19 21 County, or other applicable public entity, and the City shall accept, all necessary easements and rights-of-way over, across, under and through the Project Site at no cost to the City. Performance Bond: The City will obtain a performance and payment bond for the construction of the public improvements to be dedicated in conformance with Section 107.170 of the Revised Statutes of Missouri, as amended. The cost of such bond shall be advanced by the Developer and shall be eligible for reimbursement hereunder. Termination by Developer: At any time prior to the delivery of the Certificate of Substantial Completion, the Developer may, by giving written notice to the City and the County, abandon or discontinue the Project and terminate any agreements related thereto and its obligations thereunder. Upon such termination, the City and the County shall have no obligation to reimburse the Developer for any amounts advanced or costs incurred or paid, and the Developer shall have no obligation regarding the Project or the related public improvements. Termination by City and/or County: If the Developer fails to provide the City with an acceptable Certificate of Substantial Completion in accordance with the Construction Schedule, the City and the County may terminate any agreements related thereto. Upon termination of such agreement(s) the City and the County shall have no further obligations to reimburse the Developer for any amounts advanced thereunder or any costs otherwise paid or incurred in connection with the Project or the related public improvements. Employment: It is anticipated that the NARS call center will generated approximately 350 to 500 employees. Financing Assumptions: Developer's financing costs are approximately equal to the prime rate, as established in the Wall Street Journal, but not to exceed 7.5%, and the costs would be amortized over a 25 -year period. S2140721.4 on BILL NO. 07-64 RESOLUTION NO. A RESOLUTION OF INTENT OF THE CITY OF CAPE GIRARDEAU, MISSOURI, TO ENTER INTO A DEVELOPMENT AGREEMENT WITH GREATER MISSOURI BUILDERS, INC., PURSUANT TO THE TERMS SET FORTH HEREIN, AND TO UNDERTAKE FURTHER ACTION IN CONNECTION WITH THE PROPOSED TOWN PLAZA REDEVELOPMENT PROJECT WHEREAS, Greater Missouri Builders, Inc. (the "Company") is the owner of record of approximately 16.4 acres at the northeast quadrant of South Kingshighway and William Streets, located in the City of Cape Girardeau, State of Missouri (the "Property"), which the Company intends to develop for commercial and retail uses; and WHEREAS, the Company desires to develop a 40,000 square -foot call center and 25,000 square feet of additional retail space on the Property, and to make certain related public improvements on and adjacent to the Property (the "Redevelopment Project"); and WHEREAS, the development of the 40,000 square -foot call center will generate approximately 350 to 500 new jobs for the community and will result in an increase in economic activity in the City; and WHEREAS, the Company seeks reimbursement for expenditures related to such public improvements through: (a) the imposition of a community improvement district sales tax in an amount not to exceed one percent (1%) pursuant to Sections 67.1401 to 67.1571 of the Revised Statutes of Missouri, as amended (the "CID Act"); (b) real property tax abatement on certain new and existing improvements on the Property pursuant to Chapter 353 of the Revised Statutes of Missouri, as amended ("Chapter 353"); and (c) reimbursement of a portion of the incremental increase in municipal and county sales tax revenues generated on the Property, all as provided by Missouri law (collectively, the "Economic Incentives"); and WHEREAS, following public hearings to consider and receive public comment related to the creation of the Town Plaza Community Improvement District and Town Plaza Redevelopment Area, on March 19, 2007, the City introduced Bill No. 07-56 designating a portion of the Cape Girardeau as a "blighted area" pursuant to Chapter 353, Bill No. 07-57 approving the Town Plaza Redevelopment Plan, in accordance with Chapter 353, and Bill No. 07-58 establishing the Town Plaza Community Improvement District in accordance with the CID Act; and WHEREAS, the City finds it necessary to finance the Redevelopment Project through the imposition of the Economic Incentives to offset extraordinary development costs, such that, without such Economic Incentives, the Redevelopment Project would not be economically feasible for the Company; and WHEREAS, the City acknowledges the benefit of the Redevelopment Project to the City as it will remediate certain blighting conditions existing thereon, create additional retail activity, and result in approximately 350 to 500 new jobs, all of which will serve the public interest and general welfare of its citizens; and WHEREAS, the City and the Company have agreed to a set of terms and conditions attached hereto and incorporated herein as Exhibit A (the "Term Sheet") by which the Redevelopment Project would be financed and constructed and the City desires to memorialize such agreement and demonstrate its intent to enter into a written development agreement with Company (the "Development Agreement") that substantially conforms to the Term Sheet. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: Section 1. The Recitals set forth above are hereby incorporated into this Resolution. Section 2. The Term Sheet, attached hereto as Exhibit A and incorporated herein by reference, is hereby approved. Section 3. The City hereby expresses its continued support for the Redevelopment Project and the Economic Incentives, and further expresses its intent to negotiate and enter into the Development Agreement with the Company pursuant to the terms and conditions set forth in the Term Sheet. Section 4. The City Manager and City Attorney are hereby authorized to continue negotiating the terms of the Development Agreement in accordance with the Term Sheet approved herein, and to take such further action as is determined reasonable and necessary in order to perform the undertakings contemplated herein. Section 5. This Resolution shall be in full force and effect immediately upon its date of passage and approval by the City Council. PASSED AND ADOPTED THIS Z_ DAY OF , 20_D 1. Gayle L. CoV , City Clerk eI 4m B.udtson, Mayor EXHIBIT A TERM SHEET (Attached hereto.) I CAPE GIRARDEAU/TOWN PLAZA SHOPPING CENTER PROJECT Term Sheet Project Site: The intersection of Kingshighway and William Streets, 2136 William Street, in the City of Cape Girardeau, Missouri, consisting of Sears facility and Town Plaza Center. 2. Developer: 3. City: H 5 1 7 Greater Missouri Builders, Inc. Cape Girardeau, Missouri. Initial Project: Conversion of existing Sears facility at Kingshighway and William Streets into two components — a 40,000 square -foot call center to be operated by National Asset Recovery Services, or NARS, and 25,000 square feet of additional retail space. The existing Town Plaza Center also contains 130,000 square feet of retail space that will be unaffected by the modifications to the Sears facility. NARS: The Developer has entered into lease agreement with NARS to occupy the rehabilitated Sears facility for a period of five years. The lease contains two three-year extensions that may be exercised at NARS' option. In the event that NARS does not exercise its option to renew the lease, or the lease is otherwise terminated absence any fault of the Developer, the Public Assistance will remain intact for the entire term of agreement. The Developer will use good faith efforts to comply with the terms of the lease. Initial Project Cost Elements: Facade improvements, parking facilities, roof reconstruction, HVAC required to convert the Sears facility from a single -use retail space to the NARS call center and multiple retail outlets. Subsequent Project(s): The Developer also reserves the right to make subsequent public improvements to the existing Town Plaza Center as dictated by market factors and demand and to request additional economic incentives to fund those subsequent public improvements. M 10. 11 Cost Advance and Reimbursement: The Developer has paid or agrees to pay all costs necessary to acquire the Project Site and construct the Initial Project, and the City agrees to reimburse, or cause to be reimbursed, the Developer for those eligible costs incurred in the development of the Project. Public Assistance Requested: $3.6 million, consisting of Chapter 353 tax abatement, community improvement district sales tax and special assessment, and City and County incremental sales tax reimbursement in an amount not to exceed $1.2 million. Right to Substitute: In the event that (a) any cost is determined by the City not to be eligible for reimbursement in accordance herewith, or (b) a cost incurred by the Developer in any of the approved categories of costs is less than the amount for that category authorized by the City, then the Developer shall have the right to substitute other costs within one of the categories identified, such that the aggregate of all project cost elements may equal but not exceed $3.6 million. Chapter 353: The City will grant tax abatement pursuant to Chapter 353 of the Revised Statutes of Missouri as follows: (a) in the first ten years, 100% real property tax abatement on the new improvements to the Sears facility and 50% real property tax abatement on the existing improvements on the Sears site; and (b) for an additional fifteen years, 50% real property tax abatement on both new and existing improvements. The savings from the tax abatement will be used to reimburse the Developer for eligible costs incurred in the reduction of blighting factors present on the Project Site. To the extent the Developer transfers ownership of real property within the 353 development area to another user, including NARS, the Developer may, at its option, capture those savings by imposing a community improvement district (see Paragraph 12 below) special assessment equal to the property taxes otherwise payable if tax abatement had not been effectuated. 2 On March 5, 2007, the City conducted a public hearing to receive public comment on the proposed redevelopment plan, tax impact analysis and blighting study. The blighting determination and redevelopment plan approval are currently before the board as Bill Nos. 07-56 and 07-57, respectively. The estimated value of the tax abatement, adjusted for present value, is approximately $600,000, but is subject to change depending on the assessed value of the property after substantial completion. 12. Community Improvement District: The City will establish a "community improvement district" or "CID" encompassing both the Sears facility and the existing Town Plaza Center, pursuant to Sections 67.1401 to 67.1575 of the Revised Statutes of Missouri. The establishment of the district will authorize the imposition of a CID sales tax in an amount not to exceed one percent to be imposed on all retail activity within the boundaries of the district, including the 130,000 square feet of existing retail and the proposed 25,000 square feet of new retail. The sales tax revenues generated will finance the construction of additional public improvements on the Sears site and, as dictated by market demands, the Town Plaza Center, and, assuming the property is declared "blighted" pursuant to Chapter 353, to reconstruct the Sears facility to accommodate the NARS call center and additional retail space. It is expected that the CID will issue revenue obligations to evidence the reimbursement of eligible project costs. Debt service on such obligations will be paid with sales tax revenues and the pledged municipal revenues as set forth in Paragraph 13 below. On March 5, 2007, the City conducted a public hearing to receive public comment on the proposed community improvement district. The establishment of the CID is currently before the board as Bill No. 07-58. The estimated value of the CID sales tax revenues is $1.5 million, adjusted for present value, but is subject to change depending on actual taxable sales 3 activity within the CID and assessed value of the Project Site. The establishment of the CID will also authorize, at the Developer's sole discretion, the imposition of a CID special assessment as set forth in Paragraph 11 above. 13. Incremental Sales Tax Revenues: The City will contract with the urban redevelopment corporation to pledge an amount equal to 1.5% of the incremental increase in all taxable sales generated within the Project Area to reimburse the Developer for those project cost elements incurred in relation to public infrastructure and the elimination of blight, assuming the Chapter 353 project is also authorized. Further, the City represents that Cape Girardeau County, Missouri, has agreed to contribute an amount equal to 0.25% of the incremental increase in all taxable sales generated within the Project Area to reimburse the Developer. The base year on which the incremental increase will be measured is 2006. The reimbursement obligation will commence October 1, 2007, and will expire on the earlier of. (a) 20 years from the commencement date, or (b) the date on which the Developer has been reimbursed $1.2 million, plus applicable interest. The initial reimbursement will be due and payable January 1, 2008, and each reimbursement payment thereafter will be due and payable forty-five (45) days after the end of each subsequent calendar quarter for the term of the agreement. In each instance, the incremental sales tax revenues will be pledged, subject to annual appropriation, to the payment of debt service on the community improvement district obligations issued as set forth in Paragraph 12 above. If NARS exercises its option to extend the period of the lease, or if any other tenant occupies the Sears facility beginning in the sixth year of the reimbursement term, fifty percent (50%) of the gross rental revenues received by the Developer 0 from such tenant will be applied to reduce the principal and accrued interest outstanding on the City and County contributions. Such incremental sales tax revenues may be further offset by any future public incentives received by the Developer. Other than the consent of the County with respect to its reimbursement obligation, no consent or approval by any other governmental authority is required in connection with the acceptance of these terms or the performance by the City or the County of their obligations hereunder. On each payment date, the City shall provide the Developer with a notice setting forth the amount remaining on its obligation to the Developer; provided, however, that such notice will not prevent the Developer from reviewing and disputing the amounts set forth therein. 14. Subsequent Incentives: The Developer reserves the right to request additional incentives for the Project Site and property adjacent thereto depending on market conditions, tenant mix in the existing Town Plaza Center and other factors existing in the future. Such incentives may include but are not limited to: (a) the expansion of the Chapter 353 redevelopment area to include adjacent property as necessary to construct additional projects; and/or (b) the adoption of tax increment financing on the Sears facility, the existing Town Plaza Center and/or property adjacent thereto. Should additional incentives be authorized, any revenues generated would offset the City's obligations to reimburse the Developer from a portion of the incremental municipal sales taxes generated on the Project Site. 15. Construction Schedule: The Developer shall, upon execution of a Development Agreement, provide the City with a construction schedule setting forth the anticipated completion date. Upon substantial completion of the Initial Project, the Developer shall submit to the City and the County a Certificate of Substantial Completion, which may be recorded with the Recorder of Deeds for the County. 16. Dedication: Upon substantial completion of the Project, the Developer shall dedicate and convey to the City, the G 17 IN 19 20 21 County, or other applicable public entity, and the City shall accept, all necessary easements and rights-of-way over, across, under and through the Project Site at no cost to the City. Performance Bond: The City will obtain a performance and payment bond for the construction of the public improvements to be dedicated in conformance with Section 107.170 of the Revised Statutes of Missouri, as amended. The cost of such bond shall be advanced by the Developer and shall be eligible for reimbursement hereunder. Termination by Developer: At any time prior to the delivery of the Certificate of Substantial Completion, the Developer may, by giving written notice to the City and the County, abandon or discontinue the Project and terminate any agreements related thereto and its obligations thereunder. Upon such termination, the City and the County shall have no obligation to reimburse the Developer for any amounts advanced or costs incurred or paid, and the Developer shall have no obligation regarding the Project or the related public improvements. Termination by City and/or County: If the Developer fails to provide the City with an acceptable Certificate of Substantial Completion in accordance with the Construction Schedule, the City and the County may terminate any agreements related thereto. Upon termination of such agreement(s) the City and the County shall have no further obligations to reimburse the Developer for any amounts advanced thereunder or any costs otherwise paid or incurred in connection with the Project or the related public improvements. Employment: It is anticipated that the NARS call center will generated approximately 350 to 500 employees. Financing Assumptions: Developer's financing costs are approximately equal to the prime rate, as established in the Wall Street Journal, but not to exceed 7.5%, and the costs would be amortized over a 25 -year period. 52140721.4 r