I-1 - Development Agreement Park 8 - Baltic

7. Legal and Administrative Costs. The Developer hereby acknowledges that the City will cover the initial payment of legal fees and administrative costs (the “Actual Admin Costs”) incurred by the City in connection with the drafting, negotiation and authorization of this Agreement, including the necessary amendment to the Urban Renewal Area. Furthermore, the Developer agrees that the City shall withhold an amount (the “Admin Withholding Amount”) equal to the lesser of (1) $15,000 or (2) the Actual Admin Costs from the Incremental Property Tax Revenues received by the City to make the Payments before making any Payments to the Developer, as hereinafter set forth in order to recover some or all of the Actual Admin Costs. B. City’s Obligations 1. Payments. In recognition of the Developer’s obligations set out above, the City agrees to make twenty (20) semiannual economic development tax increment payments (the “Payments” and each, individually, a “Payment”) to the Developer during the Term, pursuant to Chapters 15A and 403 of the Code of Iowa, provided however that the aggregate, total amount of the Payments (the “Maximum Payment Total”) shall not exceed $3,000,000. All Payments under this Agreement shall be subject to annual appropriation by the City Council, as provided hereunder. The Payments shall not constitute general obligations of the City, but shall be made solely and only from the Annual Percentage of Incremental Property Tax Revenues received by the City from the Johnson County Treasurer and attributable to the taxable valuation of the Property. Prior to funding any Payments under this Agreement, the City will first withhold from the Incremental Property Tax Revenues an amount equal to the Admin Withholding Amount. Once an amount equal to the Admin Withholding Amount has been withheld by the City, the Payments shall be made as hereinafter set forth. The Payments will be made on December 1 and June 1 of each fiscal year following an affirmative appropriation decision as provided for under Section B.2 below, beginning on December 1 of the fiscal year immediately succeeding the year in which the Triggering Certification is made, and continuing for a period of a total of ten (10) fiscal years, provided, however, that no Payment will be made after the sooner of (i) the date on which the aggregate sum of Payments made hereunder equals the Maximum Payment Total; or (ii) June 1, 2039. For example, assuming the Triggering Certification is made on October 15, 2027 and all appropriation determinations are approved affirmatively by the City Council under Section B.2 below, Payments will be made on each December 1 and June 1, beginning December 1, 2028, and continuing through and including the sooner of June 1, 2038 or the date on which the aggregate sum of Payments made hereunder equals the Maximum Payment Total. 2. Annual Appropriation. The Payments shall be subject to annual appropriation by the City Council. Prior to December 1 of each year during the Term of this Agreement, beginning in the fiscal year in which the Triggering Certification is filed, the City Council of the City shall consider the question of obligating for appropriation to the funding of the Payments due in the following fiscal year, an amount (the “Appropriated Amount”) of Incremental -4-