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HomeMy Public PortalAboutORD16393BILL NO. 2023-066 SPONSORED BY Councilmember Hensley ORDINANCE NO. ILo313 AN ORDINANCE REAFFIRMING A CERTAIN TRACT OF LAND IN THE CITY OF JEFFERSON, MISSOURI, IS A BLIGHTED AREA; APPROVING THE AMENDED AND RESTATED DEVELOPMENT PLAN SIMONSEN REDEVELOPMENT PROJECT; APPROVING A DEVELOPMENT AGREEMENT IN CONNECTION WITH THE AMENDED AND RESTATED DEVELOPMENT PLAN; AND AUTHORIZING THE CITY TO ENTER INTO CERTAIN AGREEMENTS AND TAKE CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. WHEREAS, the City of Jefferson, Missouri (the "City"), is authorized and empowered to undertake certain redevelopment projects pursuant to Chapter 353 of the Revised Statutes of Missouri ("Chapter 353") and Chapter 25, Article II I of the Jefferson City Code, as amended by Ordinance No. 16215 (the "Urban Redevelopment Ordinance"); and WHEREAS, pursuant to Ordinance No. 16249, the City (a) found that approximately 3.68 acres of real property located at 501 Miller Street in the City and including the historic Simonsen School building (the "Redevelopment Area") was a blighted area as defined in Chapter 353 and (b) approved a development plan for the Redevelopment Area (the "Original Development Plan"); and WHEREAS, the Original Development Plan contemplated redeveloping the Redevelopment Area for multi -family residential use; and WHEREAS, the redevelopment contemplated by the Original Development Plan has not been feasible to date; and WHEREAS, an Amended and Restated Development Plan Simonsen Redevelopment Project in the form of Exhibit A attached hereto (the "Amended Development Plan"), has been prepared and submitted to the City, which Amended Development Plan amends and restates the Original Development Plan to include potential office, restaurant, entertainment and/or other commercial uses in addition to multi -family uses in the Redevelopment Area (the "Redevelopment Project"); and WHEREAS, the City believes that the redevelopment activities described in the Amended Development Plan are feasible; and WHEREAS, the Amended Development Plan contemplates the use of real property tax abatement to incentivize the Redevelopment Project; and WHEREAS, implementation of the Amended Development Plan through the completion of the Redevelopment Project will remediate the conditions that cause the Redevelopment Area to be a blighted area; and WHEREAS, in accordance with Chapter 353 and the Urban Redevelopment Ordinance, the City Council held a public hearing regarding the blight designation, the proposed Amended Development Plan and the contemplated grant of tax abatement on December 4, 2023, at which hearing all interested persons and taxing districts were given the opportunity to be heard (the “Public Hearing”); and WHEREAS, the City Council hereby finds and determines that it is desirable for the improvement of the economic welfare and development of the City to approve the Development Plan; and WHEREAS, the Redevelopment Project is also the subject of the Amended and Restated Plan for an Industrial Development Project (the “Amended Chapter 100 Plan”) approved by Ordinance No. _____ (Bill No. _____), which Amended Chapter 100 Plan allows for a sales tax exemption on construction materials used to construct the Redevelopment Project; and WHEREAS, the City Council further finds and determines that it is necessary and desirable in connection with the implementation of the Amended Development Plan and the Amended Chapter 100 Plan to enter into a Development Agreement, in substantially the form of Exhibit B, with the developer of the Redevelopment Project (the “Development Agreement”). NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Findings. Upon due consideration of the Amended Development Plan and the testimony presented at the Public Hearing, the City Council finds that the Redevelopment Area is in substantially the same condition as it was when Ordinance No. 16249 was approved and, therefore, the findings in Section 1 of Ordinance 16249 are hereby reaffirmed. Section 2. Approval of Amended Development Plan. The Amended Development Plan is hereby approved. Section 3. Approval of Development Agreement. The City is hereby authorized to enter into the Development Agreement, in substantially the form presented to and approved by the City Council and attached to this Ordinance as Exhibit B, with such changes therein as shall be approved by the officials of the City executing the Development Agreement, such officials’ signatures thereon being conclusive evidence of their approval thereof. The Mayor is hereby authorized to execute the Development Agreement and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance, for and on behalf of and as the act and deed of the City. The City Clerk is hereby authorized to attest to and affix the seal of the City to the Development Agreement and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 4. Developer Substitution. Notwithstanding the form of the Development Agreement approved in substantially final form pursuant to Section 3, at the request of Daegens Consortium, LLC (the "Developer"), any entity controlled by the Developer or under common control with the Developer may be inserted as the Developer in the Development Agreement prior to execution. Section 5. Further Authority. The City shall, and the officials, agents and employees of the City are hereby authorized to, take such further action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the Amended Development Plan and the Development Agreement. The Mayor and the City Administrator are hereby authorized, through the term of the Development Agreement, to execute all documents on behalf of the City (including documents pertaining to the financing or refinancing of the Redevelopment Project by the Developer) as may be required to carry out and comply with the intent of this Ordinance and the Development Agreement. The Mayor and the City Administrator are further authorized, on behalf of the City, to grant such consents, estoppels and waivers relating to the Development Agreement as may be requested during the term thereof; provided, such consents, estoppels and/or waivers shall not increase the amount or duration of the economic incentives provided in the Development Agreement, waive an event of default or materially change the nature of the transaction. The City Clerk is authorized to attest to and affix the seal of the City to any document authorized by this Section. Section 6. Severability. It is hereby declared to be the intention of the City Council that each and every part, section and subsection of this Ordinance shall be separate and severable from each and every other part, section and subsection hereof and that the City Council intends to adopt each said part, section and subsection separately and independently of any other part, section or subsection. If any part, section or subsection of this Ordinance shall be determined to be or to have been unlawful or unconstitutional, the remaining parts, sections and subsections shall be and remain in full force and effect, unless the court making such finding shall determine that the valid portions standing alone are incomplete and are incapable of being executed in accord with the legislative intent. Section 7. Effective Date. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed: bLcorbo' iP, 2t3a3 Presi • in •C er ATTEST: Approved: /�._—f 373 APPROVED AS TO FORM: Pro Tempore Jon Hensley EXHIBIT A AMENDED DEVELOPMENT PLAN (On file in the office of the City Clerk) Amended and Restated Development Plan Simonsen Redevelopment Project November 21, 2023 Prepared on behalf of the Jefferson Redevelopment Corporation, Inc. by: Amended and Restated Development Plan Simonsen Redevelopment Project Page 1 1.0 Introduction The historic Simonsen School Building (the “School Building”) is located on an approximately 3.68-acre parcel located at 501 E. Miller Street in the City of Jefferson, Missouri (the “Redevelopment Area”). The Redevelopment Area is depicted on Appendix 1 and legally described on Appendix 2. The Redevelopment Area was the subject of a development plan approved by Ordinance No. 16249 on August 1, 2022 (the “Original Development Plan”). The “Redevelopment Project” described in the Original Plan was not feasible. Accordingly, this Development Plan amends and restates the Original Plan to describe a redevelopment project that the proponents of this Development Plan believe to be feasible. The existing School Building was constructed in 1937 and functioned as a school until it closed in 2019. Shortly after the last students left the School Building on May 22, 2019, an EF3 tornado struck the City and damaged the School Building. The School Building remains vacant and in a state of disrepair. In 2022, in connection with the approval of the Original Plan, the City Council determined that the Redevelopment Area was a “blighted area” as defined in Section 353.020(2). A copy of the blight study included in the Original Plan, and relied upon by the City Council in making the blighted area determination, is attached hereto as Appendix 3 (the “Blight Study”). The Original Plan contemplated that the School Building would be redeveloped into 60-75 residential apartments and receive 25 years of real property tax abatement. Ultimately, the redevelopment into solely residential uses was not feasible. This Development Plan amends and restates the Original Plan to contemplate a mix of uses for the redeveloped School Building, including multi-family residential, office, restaurant, entertainment and/or other commercial uses. This Development Plan, however, does not change the terms of available tax abatement. Up to 25 years of real property tax abatement, as permitted by Chapter 353 of the Revised Statutes of Missouri (“Chapter 353”) is available for redevelopment activities that comply with this Development Plan. The Original Plan was submitted by the Jefferson Redevelopment Corporation, Inc. (the “Redevelopment Corporation”). The Redevelopment Corporation was incorporated in 2019 at the request of the City to utilize the tools available under Chapter 353, including real property tax abatement, to assist in identifying blighted areas and facilitating the redevelopment of such areas. Additionally, Chapter 25, Sections 25-47 and 25-48 of the Jefferson City Code prescribe certain procedures for the consideration of development plans seeking to use incentives under Chapter 353. The Redevelopment Corporation has requested that the City consider this Development Plan, as an amendment and restatement of the Original Plan, to help facilitate a new vision for the redevelopment of the School Building. This Development Plan complies with all aspects of Chapter 353 and the applicable Jefferson City Code provisions. Amended and Restated Development Plan Simonsen Redevelopment Project Page 2 2.0 Redevelopment Project This Development Plan proposes that the existing School Building be restored and renovated for a mix of uses including: • Multi-family residential; • Office; • Restaurant; • Entertainment; and/or • Other commercial uses The redevelopment of the School Building for the above uses, together with other site improvements in the Redevelopment Area (i.e., associated landscaping, parking lot and other ancillary improvements within the Redevelopment Area), is collectively referred to herein as the “Redevelopment Project.” Given the scope and complexity of the Redevelopment Project, it is expected that the Redevelopment Project will be completed in multiple phases over several years. The initial phase is expected to include roof repair and other stabilization activities necessary to prevent any further deterioration of the School Building. This initial phase will begin shortly after approval of the Development Plan. Future phases will activate the School Building with the uses described above and will be implemented as market conditions permit. 3.0 Proposed Tax Abatement Chapter 353 permits up to 25 years of partial tax abatement. This Development Plan provides for partial tax abatement for all 25 years, subject to the following terms: • In accordance with Chapter 353, real property tax abatement will begin in the year in which the Redevelopment Corporation acquires title to the applicable real property (and entities that acquire title to the applicable real property after the Redevelopment Corporation will continue to receive the tax abatement contemplated herein so long as the applicable property is used in accordance with this Development Plan and the applicable property owner complies with the provisions of any development agreement associated with the property); • During years 1 through 10 of the tax abatement period, as required by Chapter 353, the property owner will pay real property taxes based on the assessed value of the land, exclusive of improvements, in the year prior to the Redevelopment Corporation’s acquisition of the applicable real property in the Redevelopment Area (the “Statutory Unabated Taxes”); • In addition to the Statutory Unabated Taxes, the property owner will, in every year of the abatement period, pay contractual payments in lieu of taxes (“PILOTs”) in an amount that, when added to the Statutory Unabated Taxes, equals the amount of real property taxes that would be due based on the assessed value of the real property in the year prior to the Redevelopment Corporation’s acquisition. Amended and Restated Development Plan Simonsen Redevelopment Project Page 3 As an example, the real property in the Redevelopment Area has a 2023 assessed value of $14,100, which based on a tax rate of $5.9646 per $100 of assessed value, generates a 2023 tax bill for $841. If the real property within the Redevelopment Area is acquired by the Redevelopment Corporation in 2024 to initiate tax abatement, the total Statutory Unabated Taxes and PILOTS due for each of 2024 through 2048 will be $841 assuming the assessed value and tax rate for 2024 is the same as 2023 (in practice, such amount will be $14,100 multiplied by the then-current tax rate). Statutory Unabated Taxes and PILOTs will be divided pro rata among the taxing districts that levy ad valorem real property taxes in the Redevelopment Area based on each taxing district’s then-current levy rate. A tax impact statement showing the effect of the proposed abatement on each applicable taxing district has been prepared and furnished to the applicable taxing districts in accordance with Chapter 353 and the applicable Jefferson City Code sections. A copy of the tax impact statement furnished to the taxing districts is attached hereto as Appendix 4. 4.0 Other Development Plan Components 4.1 Development Plan Objectives. Implementation of this Development Plan is anticipated to remediate the conditions that cause the Redevelopment Area to be a blighted area. Elimination of these blighting conditions will encourage active use of the Redevelopment Area. After expiration of the tax abatement period, the taxing districts will be expected to receive significant tax revenue from a vibrant Redevelopment Area. 4.2 Relocation Policy. The School Building is currently vacant. Accordingly, no relocations are anticipated as part of the Redevelopment Project. However, should any relocations become necessary, they will be carried out in compliance with applicable City and State legal requirements, including, without limitation, Sections 523.200, et seq., of the Revised Statutes of Missouri. 4.3 Land Use. The Redevelopment Area lies within the City's “RA-2” zoning district classification. The City’s Zoning Code provides that the RA-2 is intended for high-intensity residential living. (See Jefferson City Code § 35- 26(E)). Zoning changes may be required to accommodate the commercial uses contemplated by this Development Plan. Any requests for zoning changes will be subject to the applicable provisions of the City’s zoning code. Approval of this Development Plan does not constitute a zoning approval. 4.4 Eminent Domain. No eminent domain will be used in connection with this Development Plan. * * * APPENDIX 1 MAP OF REDEVELOPMENT AREA APPENDIX 2 LEGAL DESCRIPTION OF REDEVELOPMENT AREA TRACT I INLOTS NOS. 622, 623, 624, 625, 626, 627 AND 628, IN THE CITY OF JEFFERSON, MISSOURI. EXCEPT THAT PART OF INLOT NO. 622 CONVEYED TO JOSEPH A KOLB ET AL BY DEED OF RECORD IN BOOK 329, PAGE 465, COLE COUNTY RECORDER'S OFFICE. ALSO, ALL THAT PART OF INLOT NO. 621, IN THE CITY OF JEFFERSON, MISSOURI LYING AND SITUATE ON THE SOUTH SIDE OF GOOSE CREEK BEING ONE HALF THEREOF, MORE OR LESS. EXCEPT THAT PART OF INLOT NO. 621 CONVEYED TO JOSEPH A KOLB, ET AL BY DEED OF RECORD IN BOOK 329, PAGE 465, COLE COUNTY RECORDER'S OFFICE. APPENDIX 3 BLIGHT STUDY I LAUBER MUNICIPAL LAW, LLC Study of Blighting Factors within the Simonsen Redevelopment Area Introduction. In accordance with Section 353.020(2) of the Urban Redevelopment Corporation Act of the Revised Statutes of Missouri, as amended (“Chapter 353”), this analysis of factors within the Redevelopment Area (the “Area”) described in that certain development plan entitled “Development Plan — Simonsen Redevelopment Project” (the “Plan”) has been prepared to assist the Jefferson City City Council (the “Council”) in determining whether the Area constitutes a “blighted area,” as that term is used and defined in the Urban Redevelopment Corporations Law, Chapter 353 of the Revised Statutes of Missouri, as amended (“Chapter 353”). This analysis was conducted in March and April of 2022. Description of Area The Area is located in the heart of the City of Jefferson City, Missouri, as depicted in Exhibit A attached to the Plan and incorporated by reference in this analysis. The Area consists of a single tract of land in the central downtown area of Jefferson City. The Area consists of the former Simonsen Ninth Grade Center of the Jefferson City Public School Area. The building sits on “Hobo Hill,” which was the original location of Lincoln Institute when the first classes were offered in September 1866. Lt. Richard Baxter Foster, a white officer, led the efforts of the men of the 62nd and 65th Colored Infantries to Study of Blighting Factors within the Simonsen Redevelopment Area Introduction. In accordance with Section 353.020(2) of the Urban Redevelopment Corporation Act of the Revised Statutes of Missouri, as amended (“Chapter 353”), this analysis of factors within the Redevelopment Area (the “Area”) described in that certain development plan entitled “Development Plan – Simonsen Redevelopment Project” (the “Plan”) has been prepared to assist the Jefferson City City Council (the “Council”) in determining whether the Area constitutes a “blighted area,” as that term is used and defined in the Urban Redevelopment Corporations Law, Chapter 353 of the Revised Statutes of Missouri, as amended (“Chapter 353”). This analysis was conducted in March and April of 2022. Description of Area The Area is located in the heart of the City of Jefferson City, Missouri, as depicted in Exhibit A attached to the Plan and incorporated by reference in this analysis. The Area consists of a single tract of land in the central downtown area of Jefferson City. The Area consists of the former Simonsen Ninth Grade Center of the Jefferson City Public School Area. The building sits on “Hobo Hill,” which was the original location of Lincoln Institute when the first classes were offered in September 1866. Lt. Richard Baxter Foster, a white officer, led the efforts of the men of the 62nd and 65th Colored Infantries to establish a school for freed African Americans in Missouri. Undeterred by failed efforts to locate in St. Louis, Lt. Foster, determined to bring the soldiers’ dream to reality, set his sights on Jefferson City. There he found a 30-year-old frame building, which once served as a school for residents of Jefferson City. Lincoln Institute would offer classes in the building until 1869, at which time the institution moved to its present location. The “House on Hobo Hill” was destroyed by fire in 1878. In 1905 the first Jefferson City High School was built at the location. It was named after a local businessman and philanthropist, Ernst Simonsen who donated $5000 towards its construction. 1 establish a school for freed African Americans in Missouri. Undeterred by failed efforts to locate in St. Louis, Lt. Foster, determined to bring the soldiers’ dream to reality, set his sights on Jefferson City. There he found a 30-year-old frame building, which once served as a school for residents of Jefferson City. Lincoln Institute would offer classes in the building until 1869, at which time the institution moved to its present location. The “House on Hobo Hill” was destroyed by fire in 1878. In 1905 the first Jefferson City High School was built at the location. It was named after a local businessman and philanthropist, Ernst Simonsen who donated $5000 towards its construction. In May of 2019, the building was substantially damaged pa by an EF-3 tornado. The tornado did damage to the roof, Ot Re ft windows, and interior of the building. The structure has | | Seaes been empty since that time. At the time of this study, the Area is zoned RA-2. Zoning Area RA-2 is focused on High- Intensity Residential Use. (See Exhibit A). Purpose of Report This report evaluates conditions affecting the Area, through on-site inspection, documentation, research of property files/public records, and other investigations to assist the City in determining if conditions in the Area satisfy the criteria of a “blighted area” as such term is defined in Chapter 353. Definition of Blight Chapter 353 requires as a prerequisite to the undertaking of proposed redevelopment activities, including the granting of real property tax abatement, that the Council make a determination that the Area is a “blighted area,” as that term is used and defined in Chapter 353. A “blighted area” is defined by Chapter 353 to have the same definition as § 99.805(1) which reads: “(1) "Blighted area", an area which, by reason of [1] the predominance of insanitary or unsafe conditions, [2] deterioration of site improvements, or [3] the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, or welfare in its present condition and use; 2 In May of 2019, the building was substantially damaged by an EF-3 tornado. The tornado did damage to the roof, windows, and interior of the building. The structure has been empty since that time. At the time of this study, the Area is zoned RA-2. Zoning Area RA-2 is focused on High- Intensity Residential Use. (See Exhibit A). Purpose of Report This report evaluates conditions affecting the Area, through on-site inspection, documentation, research of property files/public records, and other investigations to assist the City in determining if conditions in the Area satisfy the criteria of a “blighted area” as such term is defined in Chapter 353. Definition of Blight Chapter 353 requires as a prerequisite to the undertaking of proposed redevelopment activities, including the granting of real property tax abatement, that the Council make a determination that the Area is a “blighted area,” as that term is used and defined in Chapter 353. A “blighted area” is defined by Chapter 353 to have the same definition as § 99.805(1) which reads: “(1) "Blighted area", an area which, by reason of [1] the predominance of insanitary or unsafe conditions, [2] deterioration of site improvements, or [3] the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, or welfare in its present condition and use; (§ 99.805(1) RSMo 2016 (numbering added). If the property contains one or more of these three conditions and either retards housing accommodations or constitutes an economic liability or constitutes a social liability or is a menace to the public health, safety, or welfare, then the property is a blighted area. The determination of statutory “blight” need not encompass the entire Area. Rather, Chapter 353 expressly provides that “any such area may include buildings and improvements not in themselves blighted, and any real property, whether improved or unimproved, the inclusion of which is deemed necessary for the effective clearance, re- planning, reconstruction, rehabilitation of the area of which such buildings, improvements, or real property form a part.” Based on the analysis detailed below, the Council has a sufficient factual basis to support a determination that the Area is indeed a “blighted area” under Chapter 353. DETERMINATION OF BLIGHT The following factors demonstrate that the Area is a “blighted area” as that term is defined and used in Chapter 353 and applicable judicial determinations: Blight factors present within the Area include: (1) “predominance of insanitary or unsafe conditions” (2) “deterioration of site improvements” (3) “the existence of conditions which endanger life or property by fire and other causes” Each is discussed below. 1. The Property is Characterized by a Predominance of Insanitary Or Unsafe Conditions. The Meriam-Webster dictionary defines “insanitary” to mean “unclean enough to endanger health.” lllegal dumping of trash, broken building materials, and deteriorated pavement have been found to constitute “unsafe and insanitary conditions.” (City of Kan. 33 (§ 99.805(1) RSMo 2016 (numbering added). If the property contains one or more of these three conditions and either retards housing accommodations or constitutes an economic liability or constitutes a social liability or is a menace to the public health, safety, or welfare, then the property is a blighted area. The determination of statutory “blight” need not encompass the entire Area. Rather, Chapter 353 expressly provides that “any such area may include buildings and improvements not in themselves blighted, and any real property, whether improved or unimproved, the inclusion of which is deemed necessary for the effective clearance, re- planning, reconstruction, rehabilitation of the area of which such buildings, improvements, or real property form a part.” Based on the analysis detailed below, the Council has a sufficient factual basis to support a determination that the Area is indeed a “blighted area” under Chapter 353. DETERMINATION OF BLIGHT The following factors demonstrate that the Area is a “blighted area” as that term is defined and used in Chapter 353 and applicable judicial determinations: Blight factors present within the Area include: (1) “predominance of insanitary or unsafe conditions” (2) “deterioration of site improvements” (3) “the existence of conditions which endanger life or property by fire and other causes” Each is discussed below. 1. The Property is Characterized by a Predominance of Insanitary Or Unsafe Conditions. The Meriam-Webster dictionary defines “insanitary” to mean “unclean enough to endanger health.” Illegal dumping of trash, broken building materials, and deteriorated pavement have been found to constitute “unsafe and insanitary conditions.” (City of Kan. City v. Chung Hoe Ku, 282 S.W.3d 23, 31 (Mo. App. 2009).). ' The property is in reasonably good condition considering that parts are over one hundred years old, it has been abandoned for several years, and it was hit by a tornado, which contributed to the present : apparent blighting conditions. Sidewalks throughout the Area are cracked and have heaved so as to no longer be ADA compliant and present unsafe conditions for visitors to the Area. The current nature | of the Area subjects the property to illegal activity, including illegal dumping, littering, and trespassing, evidenced by discarded beer bottles Decaying stairs, no handrails It is worth noting that the building sits on one of the highest points in the City. With its boarded-up windows, it is visible for miles around. Thus it may be assumed that the adverse effects caused by this building are greater than might ordinarily occur. Because of the building's antiquity, harmful and unsafe elements such as asbestos and lead may be present. Asbestos was used for a variety of things, including insulation, paint texture, and floor tiles. Lead, which may accumulate in the bloodstream and cause organ damage, was allowed to be used as a paint component until 1978., and unless proven otherwise, any structure built before 1977 is assumed to have these two chemicals, posing additional unsafe conditions and necessitating costly mitigating procedures to isolate them for removal. The building has also been subject to water intrusion difficulties, likely causing the development of mold inside the building. Without redevelopment, the Area is subject to continued unpermitted usage of the Area, including trespassing and littering, which contributes to the generally unsafe and unsanitary conditions of the Area. 2. The Property is Characterized by Deterioration Of Site Improvements: In general, deterioration refers to any physical deficiency or disrepair in buildings or site improvements requiring treatment or repair. 44 City v. Chung Hoe Ku, 282 S.W.3d 23, 31 (Mo. App. 2009).). The property is in reasonably good condition considering that parts are over one hundred years old, it has been abandoned for several years, and it was hit by a tornado, which contributed to the present apparent blighting conditions. Sidewalks throughout the Area are cracked and have heaved so as to no longer be ADA compliant and present unsafe conditions for visitors to the Area. The current nature of the Area subjects the property to illegal activity, including illegal dumping, littering, and trespassing, evidenced by discarded beer bottles It is worth noting that the building sits on one of the highest points in the City. With its boarded-up windows, it is visible for miles around. Thus it may be assumed that the adverse effects caused by this building are greater than might ordinarily occur. Because of the building's antiquity, harmful and unsafe elements such as asbestos and lead may be present. Asbestos was used for a variety of things, including insulation, paint texture, and floor tiles. Lead, which may accumulate in the bloodstream and cause organ damage, was allowed to be used as a paint component until 1978., and unless proven otherwise, any structure built before 1977 is assumed to have these two chemicals, posing additional unsafe conditions and necessitating costly mitigating procedures to isolate them for removal. The building has also been subject to water intrusion difficulties, likely causing the development of mold inside the building. Without redevelopment, the Area is subject to continued unpermitted usage of the Area, including trespassing and littering, which contributes to the generally unsafe and unsanitary conditions of the Area. 2. The Property is Characterized by Deterioration Of Site Improvements: In general, deterioration refers to any physical deficiency or disrepair in buildings or site improvements requiring treatment or repair. Decaying stairs, no handrails Site improvements refer to either buildings on site, or other types of improvements on site, such as driveways, sidewalks, light fixtures, steps, retaining walls, storage structures, etc. Deterioration of buildings includes defects in primary components such as cracked or damaged foundations, exterior walls, floors, wiring, plumbing, frames, or roofs. Deterioration also includes secondary building components, consisting of doors, windows, porches, soffits, fascia, gutters, and downspouts. Deterioration of driveways and parking areas includes evidence of potholes, cracks, depressions, overgrowth, and poor drainage. Deterioration of sidewalks is evidenced by settled areas, cracks, gravel sections, overgrowth, depressed curb areas, and poor drainage. The site improvements within the Area consist of: (i) the dilapidated and vacant former school building; and (ii) surface parking lots and area. The building located within the Area was built in the early twentieth century and has significantly deteriorated over time. The vacant building exhibits signs of deterioration. A field survey of the Area revealed a number of deficiencies related to the exterior of the building. The vacant building also suffers from the deterioration of several secondary building components, including broken window frames, peeling paint, rusting and rotting windows, gutters, and downspouts. The parking, driveway, and sidewalk areas of the Area also suffer from a variety of deteriorated site improvements. These deteriorated site improvements also detract from 5 Site improvements refer to either buildings on site, or other types of improvements on site, such as driveways, sidewalks, light fixtures, steps, retaining walls, storage structures, etc. Deterioration of buildings includes defects in primary components such as cracked or damaged foundations, exterior walls, floors, wiring, plumbing, frames, or roofs. Deterioration also includes secondary building components, consisting of doors, windows, porches, soffits, fascia, gutters, and downspouts. Deterioration of driveways and parking areas includes evidence of potholes, cracks, depressions, overgrowth, and poor drainage. Deterioration of sidewalks is evidenced by settled areas, cracks, gravel sections, overgrowth, depressed curb areas, and poor drainage. The site improvements within the Area consist of: (i) the dilapidated and vacant former school building; and (ii) surface parking lots and area. The building located within the Area was built in the early twentieth century and has significantly deteriorated over time. The vacant building exhibits signs of deterioration. A field survey of the Area revealed a number of deficiencies related to the exterior of the building. The vacant building also suffers from the deterioration of several secondary building components, including broken window frames, peeling paint, rusting and rotting windows, gutters, and downspouts. The parking, driveway, and sidewalk areas of the Area also suffer from a variety of deteriorated site improvements. These deteriorated site improvements also detract from the safety and appearance of the Area, which inhibits the Area’s ability to attract investment into the area. The Area contains extensive deterioration of the parking lot surfaces and curbing, and uneven and cracked surfaces and sidewalks. The Area is prone to poor drainage and vegetation has sprung up through cracks in the broken surfaces of the parking areas and sidewalks. Moreover, trash and debris were noted around the Area. All of the foregoing characteristics impair the attractiveness, marketability, and safety of the Area and evidence a general lack of maintenance for the Area. Finally, the infrastructure site improvements of the Area are insufficient or inadequate. The Area’s infrastructure will require significant investment and modification to become capable of supporting sufficient uses. For the Area to be developed, the required infrastructure will need to be either entirely rebuilt or installed. This is an expensive task that greatly discourages private sector investment. Jo Roof After Tornado 6 the safety and appearance of the Area, which inhibits the Area’s ability to attract investment into the area. The Area contains extensive deterioration of the parking lot surfaces and curbing, and uneven and cracked surfaces and sidewalks. The Area is prone to poor drainage and vegetation has sprung up through cracks in the broken surfaces of the parking areas and sidewalks. Moreover, trash and debris were noted around the Area. All of the foregoing characteristics impair the attractiveness, marketability, and safety of the Area and evidence a general lack of maintenance for the Area. Finally, the infrastructure site improvements of the Area are insufficient or inadequate. The Area’s infrastructure will require significant investment and modification to become capable of supporting sufficient uses. For the Area to be developed, the required infrastructure will need to be either entirely rebuilt or installed. This is an expensive task that greatly discourages private sector investment. Roof After Tornado 3. The Property is Characterized by the Existence Of Conditions Which Endanger Life Or Property By Fire And Other Causes Abandoned properties have been directly correlated with higher crime and social disruption (Cui, Lin; Walsh, Randall Foreclosure, Vacancy, and Crime, Journal of Urban Economics, 2015). Vacant properties are also associated with an increased arson rate, both for them and for surrounding buildings (Schachterle, Stephen E.; et al. Proximity to Vacant Buildings is Associated with Increased Fire Risk in Baltimore, Maryland, Homes Injury Prevention, 2012.). Thus abandoned properties, by their very nature, encourage crimes and fires, both on the property and nearby. 7 3. The Property is Characterized by the Existence Of Conditions Which Endanger Life Or Property By Fire And Other Causes Abandoned properties have been directly correlated with higher crime and social disruption (Cui, Lin; Walsh, Randall Foreclosure, Vacancy, and Crime, Journal of Urban Economics, 2015). Vacant properties are also associated with an increased arson rate, both for them and for surrounding buildings (Schachterle, Stephen E.; et al. Proximity to Vacant Buildings is Associated with Increased Fire Risk in Baltimore, Maryland, Homes Injury Prevention, 2012.). Thus abandoned properties, by their very nature, encourage crimes and fires, both on the property and nearby. Currently, the property is entirely vacant. The School District closed the facility and the tornado damage further prohibited any immediate use. The windows are boarded and the roof has a temporary covering. Studies have shown that “Abandoned houses are magnets for vandalism, theft, fires, drug trafficking, and more serious crimes, all of which require more and better municipal services.” (Lind, K. J. (2015). Perspectives on Abandoned Houses in a Time of Dystopia. Journal of Affordable Housing & Community Development Law, 24(1), 121-132. https://www.jstor.org/stable/26408156). That same report points out that abandoned properties require more municipal services while at the same time paying lower municipal taxes. In this case, the property pays no property tax and generates no sales tax. Abandoned buildings and empty storefronts act as an economic drag on the area and increase crime. According to a report issued by H.U.D., “Vacant and abandoned properties have negative spillover effects that impact neighboring properties and, when concentrated, entire communities and even cities. Research links foreclosed, vacant, and abandoned properties with reduced property values, increased crime, increased risk to public health and welfare, and increased costs for municipal governments.” (HUD 2014) In addition, it has been shown that the longer a property remains abandoned, the more significant the economic impact is on surrounding properties and the further away the negative impacts reach (Han, Hye-Sung 2014 The Impact of Abandoned Properties on Nearby Property Values, Housing Policy Debate, Vol. 24). 8 Currently, the property is entirely vacant. The School District closed the facility and the tornado damage further prohibited any immediate use. The windows are boarded and the roof has a temporary covering. Studies have shown that “Abandoned houses are magnets for vandalism, theft, fires, drug trafficking, and more serious crimes, all of which require more and better municipal services.” (Lind, K. J. (2015). Perspectives on Abandoned Houses in a Time of Dystopia. Journal of Affordable Housing & Community Development Law, 24(1), 121–132. https://www.jstor.org/stable/26408156). That same report points out that abandoned properties require more municipal services while at the same time paying lower municipal taxes. In this case, the property pays no property tax and generates no sales tax. Abandoned buildings and empty storefronts act as an economic drag on the area and increase crime. According to a report issued by H.U.D., “Vacant and abandoned properties have negative spillover effects that impact neighboring properties and, when concentrated, entire communities and even cities. Research links foreclosed, vacant, and abandoned properties with reduced property values, increased crime, increased risk to public health and welfare, and increased costs for municipal governments.” (HUD 2014) In addition, it has been shown that the longer a property remains abandoned, the more significant the economic impact is on surrounding properties and the further away the negative impacts reach (Han, Hye-Sung 2014 The Impact of Abandoned Properties on Nearby Property Values, Housing Policy Debate, Vol. 24). Thus in its current condition, the Area is likely to attract crime and require increased municipal services while generating no tax income. 4. The Blighting Factors Of The Property Constitute An Economic or Social Liability or a Menace to the Public Health, Safety, or Welfare In Its Present Condition and Use. Economic Liability Due to the predominance of blighting factors discussed above, the Area in its current condition is a significant economic liability to the City. As noted above, the Area suffers from obvious neglect and a clear lack of investment. This disparity has fostered a state of economic obsolescence as the Area is no longer marketable because of its condition and current status, and has become an economic burden on the City. A lack of physical maintenance of the building has contributed to Deterioration and subsequent obsolescence. Moreover, the assessed value of the parcels in the Area has not followed the pace of inflation or the overall assessed value for the City of Jefferson City. The assessed value of the Area has remained stagnant for a number of years, providing further evidence of the Area’s economic liability. Lastly, the vacancy of the Area has resulted in a continued lack of maintenance and corresponding physical deterioration of the Area, which problems can only be remediated by the type of comprehensive redevelopment such as is contemplated by the Plan. If such physical deterioration is allowed to continue, the Area, in addition to failing to generate tax revenue and economic activity to its full potential, will become a financial burden on the City. Social Liability As detailed above, the blighting conditions found on the property are directly linked to health, safety, and welfare concerns that constitute a social liability. Missouri's Courts have previously found that abandoned properties create a social liability by encouraging loitering, juvenile delinquents, and crime. (Land Clearance for Redevelopment Auth. v. Inserra, 284 S.W.3d 641, 647-48 (Mo. App. 2009).). The Han study cited above indicates that the longer a property remains abandoned the greater the impact on the surrounding 99 Thus in its current condition, the Area is likely to attract crime and require increased municipal services while generating no tax income. 4. The Blighting Factors Of The Property Constitute An Economic or Social Liability or a Menace to the Public Health, Safety, or Welfare In Its Present Condition and Use. Economic Liability Due to the predominance of blighting factors discussed above, the Area in its current condition is a significant economic liability to the City. As noted above, the Area suffers from obvious neglect and a clear lack of investment. This disparity has fostered a state of economic obsolescence as the Area is no longer marketable because of its condition and current status, and has become an economic burden on the City. A lack of physical maintenance of the building has contributed to Deterioration and subsequent obsolescence. Moreover, the assessed value of the parcels in the Area has not followed the pace of inflation or the overall assessed value for the City of Jefferson City. The assessed value of the Area has remained stagnant for a number of years, providing further evidence of the Area’s economic liability. Lastly, the vacancy of the Area has resulted in a continued lack of maintenance and corresponding physical deterioration of the Area, which problems can only be remediated by the type of comprehensive redevelopment such as is contemplated by the Plan. If such physical deterioration is allowed to continue, the Area, in addition to failing to generate tax revenue and economic activity to its full potential, will become a financial burden on the City. Social Liability As detailed above, the blighting conditions found on the property are directly linked to health, safety, and welfare concerns that constitute a social liability. Missouri’s Courts have previously found that abandoned properties create a social liability by encouraging loitering, juvenile delinquents, and crime. (Land Clearance for Redevelopment Auth. v. Inserra, 284 S.W.3d 641, 647-48 (Mo. App. 2009).). The Han study cited above indicates that the longer a property remains abandoned the greater the impact on the surrounding community (Han 2014). The Land study indicates that abandoned properties disproportionately burden municipal services (Lind 2015). The HUD study connects vacant properties directly with crime as does the Lind study (HUD 2014). The HUD study also directly links abandoned properties with decreased property values in the area. A more recent study shows that vacant and blighted properties decrease the value of surrounding properties by between 0.04% and 3.5% depending on the distance between them (C. Furio, The Economic Case for Fixing Blight ESI Consultant Solutions, Inc., March 25, 2017, https://econsultsolutions.com/economic-case-for-fixing-blight- baltimore-case-study). There can be no dispute then that the present abandoned and deteriorating state of the property creates an economic and social liability. Menace to the Public Health, Safety, or Welfare As discussed above, the Area exhibits many factors which constitute a menace to public health, safety, and welfare in its present condition and use. The Area is in poor condition and the vacant and unsecured nature of the Area invites and encourages criminal trespass or other criminal activity, including vandalism, littering, illegal dumping or refuse, and property damage. Additionally, the Area, in its current condition, is hazardous to persons or vehicles entering the site. The paved areas within the Area are damaged and have become cracked, spalled, and broken. As previously noted, the Area was damaged by the tornado, and in its present condition, the Area is a potential breeding ground for disease-carrying rodents and insects, making it a threat to individuals living and working near the Area. The poor conditions like those present in the Area elevate the risk of injury to persons and constitute a menace to the public health, safety, morals, or welfare. SUMMARY OF FINDINGS AND RECOMMENDATIONS The following summarizes the findings of this analysis. This analysis concludes that the Area meets the statutory definition of ‘blight for numerous reasons including: 1. The Area consists of a single very damaged, physically deteriorated, and 1010 community (Han 2014). The Land study indicates that abandoned properties disproportionately burden municipal services (Lind 2015). The HUD study connects vacant properties directly with crime as does the Lind study (HUD 2014). The HUD study also directly links abandoned properties with decreased property values in the area. A more recent study shows that vacant and blighted properties decrease the value of surrounding properties by between 0.04% and 3.5% depending on the distance between them (C. Furio, The Economic Case for Fixing Blight ESI Consultant Solutions, Inc., March 25, 2017, https://econsultsolutions.com/economic-case-for-fixing-blight- baltimore-case-study). There can be no dispute then that the present abandoned and deteriorating state of the property creates an economic and social liability. Menace to the Public Health, Safety, or Welfare As discussed above, the Area exhibits many factors which constitute a menace to public health, safety, and welfare in its present condition and use. The Area is in poor condition and the vacant and unsecured nature of the Area invites and encourages criminal trespass or other criminal activity, including vandalism, littering, illegal dumping or refuse, and property damage. Additionally, the Area, in its current condition, is hazardous to persons or vehicles entering the site. The paved areas within the Area are damaged and have become cracked, spalled, and broken. As previously noted, the Area was damaged by the tornado, and in its present condition, the Area is a potential breeding ground for disease-carrying rodents and insects, making it a threat to individuals living and working near the Area. The poor conditions like those present in the Area elevate the risk of injury to persons and constitute a menace to the public health, safety, morals, or welfare. SUMMARY OF FINDINGS AND RECOMMENDATIONS The following summarizes the findings of this analysis. This analysis concludes that the Area meets the statutory definition of ‘blight’” for numerous reasons including: 1. The Area consists of a single very damaged, physically deteriorated, and abandoned building. This abandoned building is deteriorated and damaged to an extent that it is not likely to be placed back into productive service without expensive improvements, such as those proposed by the Plan, which makes it economically unviable in its current state. The Area is characterized by all three blighting factors listed in Chapter 353, (1) “‘insanitary or unsafe conditions” (2) “deterioration of site improvements” and (3) “the existence of conditions which endanger life or property by fire and other causes”. These factors can be directly linked to clear and proven social harm as well as an increased risk of physical harm by fire or crime. 2. As aresult, the property meets the definition of blight as found defined by §353.020 RSMo. CONCLUSION: This analysis demonstrates that the Area exhibits conditions that the meet statutory definition of blight. There is clear evidence supporting a determination by the Council that the Area constitutes a “blighted area” so that the clearance, re-planning, reconstruction, or rehabilitation of the Area is necessary to effectuate the purposes of Chapter 353, as amended. This analysis recommends that the Council so find and determine. 1111 abandoned building. This abandoned building is deteriorated and damaged to an extent that it is not likely to be placed back into productive service without expensive improvements, such as those proposed by the Plan, which makes it economically unviable in its current state. The Area is characterized by all three blighting factors listed in Chapter 353, (1) “insanitary or unsafe conditions” (2) “deterioration of site improvements” and (3) “the existence of conditions which endanger life or property by fire and other causes”. These factors can be directly linked to clear and proven social harm as well as an increased risk of physical harm by fire or crime. 2. As a result, the property meets the definition of blight as found defined by §353.020 RSMo. CONCLUSION: This analysis demonstrates that the Area exhibits conditions that the meet statutory definition of blight. There is clear evidence supporting a determination by the Council that the Area constitutes a “blighted area” so that the clearance, re-planning, reconstruction, or rehabilitation of the Area is necessary to effectuate the purposes of Chapter 353, as amended. This analysis recommends that the Council so find and determine. EXHIBIT A PAN) Simonsen Redevelopment Ar Con City of Jefferson, Missouri AarX | Loi We | 4 % \e > » % §y 7% A , 12 EXHIBIT A APPENDIX 4 TAX IMPACT STATEMENT Tax Impact Statement Amended and Restated Development Plan Simonsen Redevelopment Project November 21, 2023 Prepared on behalf of the Jefferson Redevelopment Corporation, Inc. by: Tax Impact Statement Amended and Restated Development Plan Simonsen Redevelopment Project Page 1 1.0 Introduction The Jefferson Redevelopment Corporation, Inc. (the “Redevelopment Corporation”) submitted an Amended and Restated Development Plan Simonsen Redevelopment Project (the “Development Plan”) to Jefferson City (the “City”). The Development Plan contemplates the use of real property tax abatement available under Chapter 353 of the Revised Statutes of Missouri (“Chapter 353”) to incentivize the redevelopment of the historic Simonsen School Building (the “School Building”), which is located on an approximately 3.68-acre parcel located at 501 E. Miller Street in the City of Jefferson, Missouri (the “Redevelopment Area”). The Development Plan proposes that the existing School Building be restored and renovated for a mix of uses including: • Multi-family residential; • Office; • Restaurant; • Entertainment; and/or • Other commercial uses The redevelopment of the School Building for the above uses, together with other site improvements in the Redevelopment Area (i.e., associated landscaping, parking lot and other ancillary improvements within the Redevelopment Area), is collectively referred to herein as the “Redevelopment Project.” Given the scope and complexity of the Redevelopment Project, it is expected that the Redevelopment Project will be completed in multiple phases over several years. Chapter 353 requires that a tax impact statement be prepared regarding the tax abatement contemplated by the Development Plan. In accordance with these requirements, this Tax Impact Statement includes estimates of the amount of real property tax revenues and PILOTs that taxing districts affected by the Development Plan will receive if (1) the Redevelopment Project is completed as contemplated by the Development Plan and (2) is not completed (and, as a result, the Redevelopment Area remains in its current condition). 2.0 Proposed Tax Abatement Chapter 353 permits up to 25 years of partial tax abatement. The Development Plan provides for partial tax abatement for all 25 years, subject to the following terms: • In accordance with Chapter 353, real property tax abatement will begin in the year in which the Redevelopment Corporation acquires title to the applicable real property (and entities that acquire title to the applicable real property after the Redevelopment Corporation will continue to receive the tax abatement contemplated herein so long as the applicable property is Tax Impact Statement Amended and Restated Development Plan Simonsen Redevelopment Project Page 2 used in accordance with the Development Plan and the applicable property owner complies with the provisions of any development agreement associated with the property); • During years 1 through 10 of the tax abatement period, as required by Chapter 353, the property owner will pay real property taxes based on the assessed value of the land, exclusive of improvements, in the year prior to the Redevelopment Corporation’s acquisition of the applicable real property in the Redevelopment Area (the “Statutory Unabated Taxes”); • In addition to the Statutory Unabated Taxes, the property owner will, in every year of the abatement period, pay contractual payments in lieu of taxes (“PILOTs”) in an amount that, when added to the Statutory Unabated Taxes, equals the amount of real property taxes that would be due based on the assessed value of the real property in the year prior to the Redevelopment Corporation’s acquisition. As an example, the real property in the Redevelopment Area has a 2023 assessed value of $14,100, which based on a tax rate of $5.9646 per $100 of assessed value, generates a 2023 tax bill for $841. If the real property within the Redevelopment Area is acquired by the Redevelopment Corporation in 2025 to initiate tax abatement, the total Statutory Unabated Taxes and PILOTS due for each of 2025 through 2049 will be $841 assuming the tax rate and 2024 assessed value remains at the 2023 levels. Statutory Unabated Taxes and PILOTs will be divided pro rata among the taxing districts that levy ad valorem real property taxes in the Redevelopment Area based on each taxing district’s then-current levy rate. 3.0 Exhibits Exhibit 1 attached hereto details the assumptions used in preparing this Tax Impact Statement. Exhibit 2 attached hereto summarizes the expected real property tax revenues, Statutory Unabated Taxes and PILOTs that each affected taxing district will be expected to receive if the Redevelopment Project is completed versus not completed. Exhibit 2 also summaries the value of the tax abatement. Exhibit 3 attached hereto shows the estimated real property tax revenues for each affected taxing district that would be generated if the Redevelopment Project is not completed (and remains in its existing vacant and blighted state). Exhibit 4 attached hereto shows the estimated real property tax revenues for each affected taxing district that would be generated, prior to the application of any tax abatement, if the Redevelopment Project is successfully completed. Tax Impact Statement Amended and Restated Development Plan Simonsen Redevelopment Project Page 3 Exhibit 5 attached hereto shows the distribution of expected Statutory Unabated Taxes and PILOTs to each affected taxing district during each year from 2025 to 2049 if the proposed Redevelopment Project is successfully completed and tax abatement is provided as contemplated by the Development Plan. The value of the abatement summarized in Exhibit 2 is the difference between the values in Exhibit 4 and Exhibit 5. In addition, the Redevelopment Project is expected to generate numerous construction and permanent jobs, personal property tax revenue, sales tax revenue and other ancillary benefits. The impact of these items is not included in this Tax Impact Statement. * * * EXHIBIT 1 ASSUMPTIONS Tax Parcel: 11-03-08-0003-019-001 2023 Assessed Value: Land: $ 14,000 Improvements: 100 Total: 14,100 residential only Estimated 2024 Assessed Value (assumes Redevelopment Project is 0% complete): $14,100 residential only Estimated 2025-2026 Assessed Value (assumes Redevelopment Project is 25% complete): $712,500 residential only Estimated 2027-2028 Assessed Value (assumes Redevelopment Project is 75% complete): $1,425,000 residential $1,200,000 commercial $2,625,000 Estimated 2029-2030 Assessed Value (assumes Redevelopment Project is 100% complete): $1,425,000 residential $2,400,000 commercial $3,825,000 Assessed Value growth rate after completion: 2% each reassessment year Assessed Value growth rate if Redevelopment Project is not built: 0% each reassessment year 1 Taxing District Levy Rates: Tax rates for years 2024 through 2049 will be the same as the 2023 tax rates. 1 Without the tax abatement incentives contemplated by the Development Plan, the Redevelopment Area is not expected to receive any new investment or redevelopment. Accordingly, it is assumed that the assessed value of the Redevelopment Area will remain constant from 2024 to 2049 if the Redevelopment Project is not built pursuant to the Development Plan. EXHIBIT 2 SUMMARY OF TAX IMPACT Tax Distribution Estimated Tax Revenue on Existing Site with No Project 2025 - 2049 Estimated Real Property Tax Revenue Without Abatement if Redevelopment Project is Completed 2025 - 2049 Revenue Generated from Statutory Unabated Taxes and PILOTs 2025 - 2049 Value of Abatement Jefferson City School District 4.7593 16,777$ 4,526,238$ 16,790$ 4,509,448$ Jefferson City 0.4600 1,622 437,474 1,623 435,851 Road & Bridge 0.2779 980 264,291 980 263,311 Library 0.2000 705 190,206 706 189,500 Fire Pension 0.0961 339 91,394 339 91,055 Cole County Special Services 0.0927 327 88,161 327 87,833 Cole County General 0.0486 171 46,220 171 46,049 State of Missouri 0.0300 106 28,531 106 28,425 Commercial Surcharge 0.5800 - 335,729 - 335,729 0 6.5446 21,025$ 6,008,243$ 21,042$ 5,987,202$ EXHIBIT 3 EXPECTED TAX REVENUES IF THE REDEVELOPMENT PROJECT IS NOT COMPLETED Estimated Residential Assessed Value 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ Estimate Commercial Assessed Value - - - - - - - - - - - - - Total Estimated Assessed Value 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ Real Property Abatement Distribution Total Tax Rate per $100 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Jefferson City School District 4.7593 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ Jefferson City 0.4600 65 65 65 65 65 65 65 65 65 65 65 65 65 Road & Bridge 0.2779 39 39 39 39 39 39 39 39 39 39 39 39 39 Library 0.2000 28 28 28 28 28 28 28 28 28 28 28 28 28 Fire Pension 0.0961 14 14 14 14 14 14 14 14 14 14 14 14 14 Cole County Special Services 0.0927 13 13 13 13 13 13 13 13 13 13 13 13 13 Cole County General 0.0486 7 7 7 7 7 7 7 7 7 7 7 7 7 State of Missouri 0.0300 4 4 4 4 4 4 4 4 4 4 4 4 4 Commercial Surcharge 0.5800 - - - - - - - - - - - - - 6.5446 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ Estimated Residential Assessed Value 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ Estimate Commercial Assessed Value - - - - - - - - - - - - Total Estimated Assessed Value 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ Real Property Abatement Distribution Total Tax Rate per $100 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total Jefferson City School District 4.7593 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 16,777$ Jefferson City 0.4600 65 65 65 65 65 65 65 65 65 65 65 65 1,622 Road & Bridge 0.2779 39 39 39 39 39 39 39 39 39 39 39 39 980 Library 0.2000 28 28 28 28 28 28 28 28 28 28 28 28 705 Fire Pension 0.0961 14 14 14 14 14 14 14 14 14 14 14 14 339 Cole County Special Services 0.0927 13 13 13 13 13 13 13 13 13 13 13 13 327 Cole County General 0.0486 7 7 7 7 7 7 7 7 7 7 7 7 171 State of Missouri 0.0300 4 4 4 4 4 4 4 4 4 4 4 4 106 Commercial Surcharge 0.5800 - - - - - - - - - - - - - 6.5446 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 21,025$ EXHIBIT 4 EXPECTED TAX REVENUES IF THE REDEVELOPMENT PROJECT IS COMPLETED (PRIOR TO APPLICATION OF TAX ABATEMENT) 712,500$ 712,500$ 1,425,000$ 1,425,000$ 1,425,000$ 1,425,000$ 1,453,500$ 1,453,500$ 1,482,570$ 1,482,570$ 1,512,221$ 1,512,221$ 1,542,466$ - - 1,200,000 1,200,000 2,400,000 2,400,000 2,448,000 2,448,000 2,496,960 2,496,960 2,546,899 2,546,899 2,597,837 712,500$ 712,500$ 2,625,000$ 2,625,000$ 3,825,000$ 3,825,000$ 3,901,500$ 3,901,500$ 3,979,530$ 3,979,530$ 4,059,121$ 4,059,121$ 4,140,303$ Total Tax Rate per $100 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 4.7593 33,910$ 33,910$ 124,932$ 124,932$ 182,043$ 182,043$ 185,684$ 185,684$ 189,398$ 189,398$ 193,186$ 193,186$ 197,049$ 0.4600 3,278 3,278 12,075 12,075 17,595 17,595 17,947 17,947 18,306 18,306 18,672 18,672 19,045 0.2779 1,980 1,980 7,295 7,295 10,630 10,630 10,842 10,842 11,059 11,059 11,280 11,280 11,506 0.2000 1,425 1,425 5,250 5,250 7,650 7,650 7,803 7,803 7,959 7,959 8,118 8,118 8,281 0.0961 685 685 2,523 2,523 3,676 3,676 3,749 3,749 3,824 3,824 3,901 3,901 3,979 0.0927 660 660 2,433 2,433 3,546 3,546 3,617 3,617 3,689 3,689 3,763 3,763 3,838 0.0486 346 346 1,276 1,276 1,859 1,859 1,896 1,896 1,934 1,934 1,973 1,973 2,012 0.0300 214 214 788 788 1,148 1,148 1,170 1,170 1,194 1,194 1,218 1,218 1,242 0.5800 - - 6,960 6,960 13,920 13,920 14,198 14,198 14,482 14,482 14,772 14,772 15,067 6.5446 42,498$ 42,498$ 163,531$ 163,531$ 242,066$ 242,066$ 246,907$ 246,907$ 251,845$ 251,845$ 256,882$ 256,882$ 262,020$ 1,542,466$ 1,573,315$ 1,573,315$ 1,604,781$ 1,604,781$ 1,636,877$ 1,636,877$ 1,669,615$ 1,669,615$ 1,703,007$ 1,703,007$ 1,737,067$ 2,597,837 2,649,794 2,649,794 2,702,790 2,702,790 2,756,846 2,756,846 2,811,983 2,811,983 2,868,222 2,868,222 2,925,587 4,140,303$ 4,223,109$ 4,223,109$ 4,307,571$ 4,307,571$ 4,393,723$ 4,393,723$ 4,481,597$ 4,481,597$ 4,571,229$ 4,571,229$ 4,662,654$ Total Tax Rate per $100 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total 4.7593 197,049$ 200,990$ 200,990$ 205,010$ 205,010$ 209,110$ 209,110$ 213,293$ 213,293$ 217,559$ 217,559$ 221,910$ 4,526,238$ 0.4600 19,045 19,426 19,426 19,815 19,815 20,211 20,211 20,615 20,615 21,028 21,028 21,448 437,474 0.2779 11,506 11,736 11,736 11,971 11,971 12,210 12,210 12,454 12,454 12,703 12,703 12,958 264,291 0.2000 8,281 8,446 8,446 8,615 8,615 8,787 8,787 8,963 8,963 9,142 9,142 9,325 190,206 0.0961 3,979 4,058 4,058 4,140 4,140 4,222 4,222 4,307 4,307 4,393 4,393 4,481 91,394 0.0927 3,838 3,915 3,915 3,993 3,993 4,073 4,073 4,154 4,154 4,238 4,238 4,322 88,161 0.0486 2,012 2,052 2,052 2,093 2,093 2,135 2,135 2,178 2,178 2,222 2,222 2,266 46,220 0.0300 1,242 1,267 1,267 1,292 1,292 1,318 1,318 1,344 1,344 1,371 1,371 1,399 28,531 0.5800 15,067 15,369 15,369 15,676 15,676 15,990 15,990 16,310 16,310 16,636 16,636 16,968 335,729 6.5446 262,020$ 267,260$ 267,260$ 272,606$ 272,606$ 278,058$ 278,058$ 283,619$ 283,619$ 289,291$ 289,291$ 295,077$ 6,008,243$ EXHIBIT 5 EXPECTED STATUTORY UNABATED TAX AND PILOT REVENUES IF THE REDEVELOPMENT PROJECT IS COMPLETED (AFTER APPLICATION OF TAX ABATEMENT) 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,382 - - - - - - - - - - - - - 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,382 Total Tax Rate per $100 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 4.7593 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 684$ 0.4600 65 65 65 65 65 65 65 65 65 65 65 65 66 0.2779 39 39 39 39 39 39 39 39 39 39 39 39 40 0.2000 28 28 28 28 28 28 28 28 28 28 28 28 29 0.0961 14 14 14 14 14 14 14 14 14 14 14 14 14 0.0927 13 13 13 13 13 13 13 13 13 13 13 13 13 0.0486 7 7 7 7 7 7 7 7 7 7 7 7 7 0.0300 4 4 4 4 4 4 4 4 4 4 4 4 4 0.5800 - - - - - - - - - - - - - 6.5446 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 858$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ - - - - - - - - - - - - 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ 14,100$ Total Tax Rate per $100 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total 4.7593 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 671$ 16,790$ 0.4600 65$ 65$ 65$ 65$ 65$ 65$ 65$ 65$ 65$ 65$ 65$ 65$ 1,623 0.2779 39$ 39$ 39$ 39$ 39$ 39$ 39$ 39$ 39$ 39$ 39$ 39$ 980 0.2000 28$ 28$ 28$ 28$ 28$ 28$ 28$ 28$ 28$ 28$ 28$ 28$ 706 0.0961 14$ 14$ 14$ 14$ 14$ 14$ 14$ 14$ 14$ 14$ 14$ 14$ 339 0.0927 13$ 13$ 13$ 13$ 13$ 13$ 13$ 13$ 13$ 13$ 13$ 13$ 327 0.0486 7$ 7$ 7$ 7$ 7$ 7$ 7$ 7$ 7$ 7$ 7$ 7$ 171 0.0300 4$ 4$ 4$ 4$ 4$ 4$ 4$ 4$ 4$ 4$ 4$ 4$ 106 0.5800 - - - - - - - - - - - - - 6.5446 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 841$ 21,042$ EXHIBIT B DEVELOPMENT AGREEMENT (On file in the office of the City Clerk) ------------------------------------------------------------------------------------------------------------------------------- (The above space is reserved for Recorder's Certification.) TITLE OF DOCUMENT: DEVELOPMENT AGREEMENT DOCUMENT DATED AS OF: [*Date*], 2023 GRANTOR: CITY OF JEFFERSON, MISSOURI GRANTOR’S MAILING ADDRESS: 320 E. McCarty Street Jefferson City, Missouri 65101 GRANTEE: GRANTEE’S MAILING ADDRESS: DAEGENS CONSORTIUM, LLC 3918 Stockman Lane Jefferson City, Missouri 65109 GRANTEE: JEFFERSON REDEVELOPMENT CORPORATION GRANTEE’S MAILING ADDRESS: 320 E. McCarty Street Jefferson City, Missouri 65101 RETURN DOCUMENTS TO: Mark A. Spykerman, Esq. Gilmore & Bell, P.C. 211 North Broadway, Suite 2000 St. Louis, Missouri 63102 LEGAL DESCRIPTION: See Exhibit A DEVELOPMENT AGREEMENT FOR THE SIMONSEN REDEVELOPMENT PROJECT AMONG THE CITY OF JEFFERSON, MISSOURI, DAEGENS CONSORTIUM, LLC AND THE JEFFERSON REDEVELOPMENT CORPORATION, INC. Dated as of [*Date*], 2023 Recitals ...................................................................................................................................... 1 ARTICLE I DEFINITIONS; EXHIBITS; INCORPORATED ITEMS Section 1.1 Definitions ........................................................................................................................ 2 Section 1.2 Exhibits ............................................................................................................................. 2 ARTICLE II REDEVELOPMENT PROJECT Section 2.1 Redevelopment Project ..................................................................................................... 3 Section 2.2 Project Site Acquisition .................................................................................................... 3 Section 2.3 Relocation ......................................................................................................................... 3 Section 2.4 Schedule ........................................................................................................................... 3 Section 2.5 City Approvals to Control................................................................................................. 4 Section 2.6 Substantial Completion..................................................................................................... 4 Section 2.7 Insurance ........................................................................................................................... 4 Section 2.8 Property Maintenance ....................................................................................................... 5 ARTICLE III EXCUSABLE DELAY Section 3.1 Excusable Delay ............................................................................................................... 5 ARTICLE IV TAX ABATEMENT AND SALES TAX EXEMPTION Section 4.1 Tax Abatement .................................................................................................................. 6 Section 4.2 Sales Tax Exemption and Chapter 100 Transaction ......................................................... 7 ARTICLE V DEFAULT AND REMEDIES Section 5.1 Default .............................................................................................................................. 7 Section 5.2 Remedies; Results of Termination .................................................................................... 8 ARTICLE VI GENERAL PROVISIONS Section 6.1 Modifications; Successors and Assigns ............................................................................ 8 Section 6.2 Right to Transfer the Project Site and the Redevelopment Project................................... 8 Section 6.3 Indemnification and Hold Harmless ................................................................................. 9 Section 6.4 Notice ............................................................................................................................. 10 Section 6.5 Severability ..................................................................................................................... 11 (ii) Section 6.6 Governing Law; Venue ................................................................................................... 11 Section 6.7 Developer’s Right of Termination .................................................................................. 11 Section 6.8 Counterparts ................................................................................................................... 11 Section 6.9 Reimbursement of City Expenses ................................................................................... 11 Section 6.10 Federal Work Authorization Program ............................................................................. 11 Section 6.11 Recording ....................................................................................................................... 12 Section 6.12. Electronic Transaction .................................................................................................... 12 Section 6.13. Anti-Discrimination Against Israel Act .......................................................................... 12 Exhibit A - Legal Description of the Redevelopment Area Exhibit B - Form of Certificate of Substantial Completion Exhibit C - Form of Transferee Agreement DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT is made and entered into as of this [*Date*], 2023 (this “Agreement”), by and among the CITY OF JEFFERSON, MISSOURI, a home-rule city organized and existing under its charter and the laws of the State of Missouri (the “City”), DAEGENS CONSORTIUM, LLC, a Missouri limited liability company (together with its permitted successors and assigns, the “Developer”), and the JEFFERSON REDEVELOPMENT CORPORATION, INC., a Missouri urban redevelopment corporation (together with its permitted successors and assigns, the “Corporation”) (the City, the Developer and the Corporation may individually be referred to herein as a “Party” and collectively as the “Parties”). RECITALS A. The Developer owns approximately 3.68 acres of real property located at 501 E. Miller Street in the City (as legally described on Exhibit A, the “Redevelopment Area”). B. The Corporation is interested in facilitating the redevelopment of the Redevelopment Area, including the historic Simonsen School building located therein, and submitted the “Amended and Restated Development Plan Simonsen Redevelopment Project” dated November __, 2023 to the City (the “Amended Development Plan”), which Development Plan contemplates the use tax abatement available under Chapter 353 of the Revised Statutes of Missouri (“Chapter 353”) to incentivize the redevelopment of the Redevelopment Area for multi-family residential, office, restaurant, entertainment and/or other commercial uses (collectively, the “Redevelopment Project”). The Amended Development Plan is an amendment and restatement of an earlier development plan to allow for the commercial uses described above. C. The City Council held a public hearing with respect to the Amended Development Plan Redevelopment Project on December 4, 2023. D. On December 18, 2023, the City Council adopted Ordinance No. ____ (the “Approving Ordinance”) (a) reaffirming the City Council’s prior finding that the Redevelopment Area is a blighted area within the meaning of Section 353.020(2) of the Revised Statutes of Missouri, (b) approving the Amended Development Plan and (c) authorizing and directing the City to enter into an agreement with the Developer and the Corporation in substantially the form of this Agreement. E. In furtherance of the Redevelopment Project and pursuant to Article VI, Section 27(b) of the Missouri Constitution and Sections 100.010 through 100.200 of the Revised Statutes of Missouri, the City Council, on December 18, 2023, also adopted Ordinance No. _____, authorizing the City to issue its Taxable Industrial Revenue Bonds (Simonsen Redevelopment Project), Series 2023, in the maximum principal amount of $15,000,000 (the “Bonds”) and approving certain documents in connection therewith for the purpose of facilitating a sales tax exemption on construction materials for the Redevelopment Project (the issuance of the Bonds and the execution of the related documents are referred to herein as the “Chapter 100 Transaction”). F. The City and the Corporation now wish to have the Developer undertake, in accordance with the Amended Development Plan, the redevelopment of the Redevelopment Area and the implementation of the Redevelopment Project for the public purposes described in the Amended Development Plan, including, without limitation, the remediation of conditions that cause the Redevelopment Area to be a “blighted area” as defined in Chapter 353. -2- G. The City, the Corporation and the Developer desire to enter into this Agreement to describe the process by which the Developer will complete or cause the completion of the Redevelopment Project and the terms upon which the Redevelopment Project will receive real property tax abatement as contemplated by the Amended Development Plan and sales tax exemption as contemplated by the Chapter 100 Transaction. NOW, THEREFORE, for and in consideration of the foregoing Recitals (which are incorporated into this Agreement as an integral part hereof) and the promises, covenants and agreements contained herein, the Parties hereby agree as follows: ARTICLE I DEFINITIONS; EXHIBITS; INCORPORATED ITEMS Section 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the following capitalized words and terms shall have the following meanings: “Affiliate” means any entity that is controlled by the Developer or controlled by the same entity or entities that control the Developer. “Assessor” means the Cole County Assessor. “Certificate of Substantial Completion” means the Certificate of Substantial Completion, in substantially the same form as Exhibit B, to be delivered by the Developer pursuant to Section 2.6. “Chapter 100 Documents” means the trust indenture, base lease, lease agreement and bond purchase agreement approved by Ordinance No. _________ and executed as part of the Chapter 100 Transaction. “City Code” means the Jefferson City Code, as the same may be amended from time to time. “Collector” means the Cole County Collector of Revenue. “Construction Inspector” means such licensed engineer or architect either employed by or retained and designated by the City from time to time, and/or such individuals as may be designated to carry out inspections on behalf of the City’s planning and public works departments. “Minimum Work” means that portion of the Redevelopment Project described in Section 2.4(b). “Project Site” means the real property within the Redevelopment Area that the Developer determines is necessary to complete the Redevelopment Project. “Transferee Agreement” means the Transferee Agreement, in substantially the same form as Exhibit C, to be entered into in conjunction with certain transfers of property within the Redevelopment Area. Section 1.2 Exhibits. The following exhibits are attached to and incorporated into this Agreement: -3- (a) Exhibit A – Legal Description of the Redevelopment Area (b) Exhibit B – Form of Certificate of Substantial Completion (c) Exhibit C – Form of Transferee Agreement ARTICLE II REDEVELOPMENT PROJECT Section 2.1 Redevelopment Project. Subject to the terms and conditions of this Agreement, the Developer shall construct, or cause the construction of, the Redevelopment Project in accordance with the Amended Development Plan, this Agreement and all applicable federal, state and local laws, rules, regulations, ordinances and approvals. Section 2.2 Project Site Acquisition. (a) The Developer hereby confirms and represents that, as of the date of this Agreement, it owns or controls the Project Site. (b) The Corporation shall acquire the Project Site no later than the calendar year after the year in which the activities described in Section 2.4(b) are completed (with the purpose of the Corporation’s acquisition to be the initiation of the tax abatement contemplated by the Amended Development Plan and this Agreement). (c) The Corporation shall immediately transfer title to the Project Site back to the Developer. (d) If the building located in the Redevelopment Area is divided into condominiums, individual condominiums may be transferred to the Corporation (and transferred back to the Developer) separately, as long as all condominiums have been transferred to the Corporation within the time permitted by (b) above. Section 2.3 Relocation. The relocation of any person or business from the Redevelopment Area, if any, shall be completed in conformance with applicable state law and City Code provisions. The Parties acknowledge that no relocations are anticipated. Section 2.4 Schedule. The Developer shall complete the Redevelopment Project within phases in accordance with the following schedule: (a) by December 31, 2025, complete roofing repairs and replacement and begin other building stabilization and remediation activities, including, without limitation, window replacement and building securement; (b) by December 31, 2027, substantially complete at least ______ square feet of commercial space (which may include office, restaurant, entertainment or other uses) and obtain occupancy permits for at least ___ residential units (collectively, the “Minimum Work”); and (c) as market conditions permit, substantially complete all remaining commercial and residential spaces. -4- Commercial space will be deemed substantially complete if either (1) an occupancy permit has been obtained for the space or (2) the space has been constructed to a “white box” finish and will be completed upon identification of a tenant and installation of tenant improvements. Notwithstanding anything in Section 3.1 to the contrary, the City Council may, in its sole discretion, extend the dates for performance in this Section by resolution upon a finding that the Developer has made satisfactory progress in light of economic conditions beyond its control. Section 2.5 City Approvals to Control. The Developer shall obtain or cause to be obtained all necessary zoning, building and other permits and approvals in conjunction with the completion of the Redevelopment Project. Notwithstanding anything to the contrary contained herein or in the Amended Development Plan, the applicable zoning, building and other permits and approvals shall control the specific development of the Redevelopment Project. Section 2.6 Substantial Completion. After substantial completion of the Minimum Work in accordance with the provisions of this Agreement, the Developer shall furnish to the Construction Inspector a Certificate of Substantial Completion certifying the substantial completion of the Minimum Work. The Construction Inspector shall, within 60 days following delivery of the Certificate of Substantial Completion, carry out such inspections as he deems necessary to verify to his reasonable satisfaction the accuracy of the certifications contained in the Certificate of Substantial Completion. If the Construction Inspector fails to approve or reject the Certificate of Substantial Completion in writing within such 60-day period, then the Developer shall notify the City in writing of its failure to take action on the Certificate of Substantial Completion, and the City shall have 30 days from receipt of such notice to accept or reject the Certificate of Substantial Completion in writing. The Certificate of Substantial Completion shall be deemed accepted by the Construction Inspector unless, prior to the end of the additional 30-day period, the Construction Inspector furnishes the Developer with specific written objections to the status of the Redevelopment Project, describing such objections and the measures required to correct such objections in reasonable detail. Upon acceptance of the Certificate of Substantial Completion by the Construction Inspector or upon the lapse of the additional 30-day period without any written objections thereto, the Developer may record the Certificate of Substantial Completion with the Cole County Recorder of Deeds, and the same shall constitute evidence of the satisfaction of the Developer’s agreements and covenants to complete the Minimum Work. Section 2.7 Insurance. (a) The Developer will cause there to be insurance for the Redevelopment Project as hereinafter set forth at all times during the process of constructing the Redevelopment Project and continuing (with respect to (ii) and (iii) below) during the term of this Agreement. The policies for such insurance shall be placed with financially sound and reputable insurers licensed to transact business in the State of Missouri. The Developer shall, from time to time at the request of the City, furnish the City with “Acord” certificates of insurance on: (i) Builder’s risk insurance, written on the so called “Builder’s Risk – Completed Value Basis,” in an amount equal to 100% of the projected insurable value of the Redevelopment Project at the date of completion (the Parties acknowledge that such insurance may not be available until demolition is complete and vertical construction begins); (ii) Property and casualty insurance to keep the Redevelopment Project constantly insured against loss or damage by fire, lightning and all other risks covered by the extended coverage insurance endorsement then in use in the State of Missouri in an amount equal to the Full -5- Insurable Value thereof (subject to reasonable loss deductible clauses). “Full Insurable Value” means the actual replacement cost of the Redevelopment Project; (iii) Commercial liability insurance with coverages of not less than the current absolute statutory waivers of sovereign immunity in Sections 537.600 and 537.610 of the Revised Statutes of Missouri (which for calendar year 2023 is equal to $3,258,368 for all claims arising out of a single accident or occurrence and $488,755 for any one person in a single accident or occurrence). Further, the policy shall be adjusted upward annually, to remain at all times not less than the inflation-adjusted sovereign immunity limits as published in the Missouri Register on an annual basis by the Department of Insurance pursuant to Section 537.610 of the Revised Statutes of Missouri; and (iv) Workers’ compensation insurance, with statutorily required coverage. (b) Simultaneously with the execution of this Agreement and annually thereafter prior to the delivery of the Certificate of Substantial Completion, the Developer shall provide evidence of contractual liability insurance (in form and substance reasonably acceptable to the City Attorney) covering the Developer’s obligations to indemnify the City, as provided in this Agreement, by an insurance company with a rating by a reputable rating agency indicating excellent or superior financial strength (i.e., an A.M. Best rating of “A-” or better). The Developer agrees to provide immediate written notice to the City when a cancellation, termination, expiration or modification of the applicable contractual liability policy occurs. Section 2.8 Property Maintenance. Following completion of the Redevelopment Project, the Developer shall maintain the Redevelopment Area in good repair and in accordance with all applicable local, state and federal laws and regulations, including without limitation, generally applicable City ordinances relating to property maintenance. ARTICLE III EXCUSABLE DELAY Section 3.1 Excusable Delay. Notwithstanding anything to the contrary contained herein, in the Amended Development Plan or in the Approving Ordinance, the time periods provided for herein shall be automatically extended by the number of days of delay caused by actions or events beyo nd the control of the Developer (but not to exceed six months), including acts of God, labor disputes, strikes, lockouts, civil disorder, war, lack of issuance of any permits and/or legal authorization by the governmental entity necessary for the Developer to proceed with the construction or cause the construction of the Redevelopment Project (provided all conditions precedent to the issuance of said permits and/or authorizations have been met and such permits or authorizations were applied for in a timely manner), shortage or delay in the shipment of material or fuel, governmental action, fire, unusually adverse weather conditions, wet soil conditions, unavoidable casualties, litigation relating to the Approving Ordinance, the Chapter 100 Transaction or any element of the Redevelopment Project, or any causes beyond the Developer’s reasonable control, or by any other cause that the City Administrator or City Council in their reasonable discretion determines may justify the delay (an “Excusable Delay”). The Parties agree that as of the date of this Agreement, no condition or event exists that would justify an Excusable Delay. The Developer shall notify the City in writing within 30 days after a claimed event of the cause of the Excusable Delay. An Excusable Delay shall not include any condition or circumstance caused or extended by the Developer, the Corporation or an Affiliate or attributable to actions or inaction by the Developer, the Corporation or an Affiliate. -6- ARTICLE IV TAX ABATEMENT AND SALES TAX EXEMPTION Section 4.1 Tax Abatement. (a) Ad valorem real property tax abatement pursuant to Chapter 353 and the Amended Development Plan shall begin in the year in which the Corporation acquires title to the Project Site, as described in Section 2.2(b), and, subject to Section 5.2, shall continue for 24 additional years (i.e., 25 years of tax abatement total, with the 25 year period referred to herein as the “Tax Abatement Period”). (i) During years 1 through 10 of the Tax Abatement Period, as required by Chapter 353, the then-current property owner will pay real property taxes based on the assessed value of the land, exclusive of improvements, in the year prior to the Corporation’s acquisition of the applicable real property in the Redevelopment Area (the “Statutory Unabated Taxes”); and (ii) In addition to the Statutory Unabated Taxes, the property owner will, in every year of the abatement period, pay contractual payments in lieu of taxes (“PILOTs”) in an amount that, when added to the Statutory Unabated Taxes, equals the amount of real property taxes that would be due based on the assessed value of the real property in the year prior to the Corporation’s acquisition. As an example, the real property in the Redevelopment Area has a 2023 assessed value of $14,100, which based on a tax rate of $5.9646 per $100 of assessed value, generates a 2023 tax bill for $841. If the real property within the Redevelopment Area is acquired by the Corporation in 2024 to initiate tax abatement, the total Statutory Unabated Taxes and PILOTS due for each of 2024 through 2048 will be $841 assuming the assessed value and tax rate for 2024 is the same as 2023. (b) Upon conclusion of the Tax Abatement Period, the Project Site, including the improvements thereon, shall be subject to assessment and payment of all ad valorem real property taxes based on the full true value of the Project Site and the improvements thereon. Notwithstanding the foregoing, if the building located in the Redevelopment Area is divided into condominiums and individual condominiums are transferred to the Corporation during different years, the Tax Abatemen t Period for individual condominiums may apply to different calendar years (i.e., the Tax Abatement Period for one condominium may be 2024 – 2048, while the Tax Abatement Period for another condominium may be 2025 – 2049), then for the purposes of this Section, only condominiums whose Tax Abatement Period has ended shall be subject to assessment and payment of ad valorem real property taxes based on the full true value of the applicable condominium. (c) The PILOTs shall be paid to the Collector annually by December 31. The Parties acknowledge their expectation that the real property tax bills provided by the Collector will reflect the appropriate amount of Statutory Unabated Taxes and PILOTs due pursuant to this Agreement. However, the failure of the Collector to provide tax bills reflecting the appropriate amount of Statutory Unabated Taxes and PILOTs due with respect to the Project Site pursuant to this Agreement will not excuse the Developer or any subsequent owner from paying all Statutory Unabated Taxes and PILOTs by December 31 of the applicable year. (d) The City, the Developer and the Corporation shall cooperate in good faith with the Collector to ensure that real property tax bills accurately reflect the abatement. The Developer shall cause -7- copies of this Agreement, the approved or deemed approved Certificate of Substantial Completion and the deed showing acquisition of the Project Site by the Corporation pursuant to Section 2.2(b) to be filed with the Collector prior to the intiation of the tax abatement described above. Section 4.2 Sales Tax Exemption and Chapter 100 Transaction. (a) The City shall issue the Bonds and close the Chapter 100 Transaction simultaneously with the execution of this Agreement. (b) Upon issuance of the Bonds (or such earlier time as the City Council may approve), the City will provide a project exemption certificate to the Developer or its designee for the purpose of exempting the purchase of construction materials for the Redevelopment Project from sales and use taxes to the extent provided by law. (c) The City and the Developer shall cooperate to cause the termination of the Chapter 100 Documents as described in Article XI of the Lease Agreement between the City and the Developer entered into as part of the Chapter 100 Transaction upon the earlier of (i) completion of the Redevelopment Project or (ii) December 31, 2029. (d) Subject to any necessary legislative actions, the City will cooperate with the Developer to process amendments to the Chapter 100 Transaction as may be necessary or desirable to facilitate the completion of the Redevelopment Project, including, without limitation, increasing the principal amount of the industrial revenue bonds issued in connection with the Chapter 100 Transaction if Project costs are higher than anticipated and, if applicable, bifurcating the Chapter 100 Transaction between multiple condominiums. Notwithstanding the foregoing, the City shall have no obligation to consider any extension of the sales and use tax exemption on construction material beyond December 31, 2029. ARTICLE V DEFAULT AND REMEDIES Section 5.1 Default. The occurrence and continuance of any one or more of the following shall constitute an “Event of Default:” (a) the Developer or subsequent property owner fails to make or cause the punctual payment of PILOTs or payments to emergency service districts owed on or before the due date and such failure is not cured to the City Attorney’s satisfaction within 10 days after the City gives written notice of the default to the Developer or subsequent property owner (provided, however, that all unabated ad valorem real property taxes paid after their due dates will be subject to interest and penalties at the rate of 18% per annum from the date such payments were first due); or (b) the Developer fails to timely perform, in all material respects, any obligation or covenant of the Developer under this Agreement, and such failure is not cured to the City Attorney’s satisfaction within 30 days after the City gives written notice thereof to the Developer, or if it cannot reasonably be cured within 30 days, then, subject to Section 2.4 and Section 3.1, for such additional time as may be necessary to cure such default so long as the Developer is diligently proceeding to effect a cure of such default; or (c) the Developer commits an Event of Default as defined in any of the Chapter 100 Documents. -8- Section 5.2 Remedies; Results of Termination. (a) Upon the occurrence of an Event of Default, (i) the City or any other taxing district levying an ad valorem real property tax in the Redevelopment Area may bring an action against the Developer or subsequent property owner to enforce any remedy available by law, including specific performance to enforce any payments due under this Agreement, and/or (ii) if the Certificate of Substantial of Completion for the Minimum Work has not yet been approved or deemed approved, the City may terminate this Agreement. (b) Upon the termination of this Agreement pursuant to this Section, a declaration of abandonment shall be filed with the Cole County Recorder of Deeds, and the Project Site and the improvements thereon shall from that date be subject to assessment and payment of all ad valorem taxes based on the full true value of the Project Site and the improvements thereon. ARTICLE VI GENERAL PROVISIONS Section 6.1 Modifications; Successors and Assigns. The terms, conditions and provisions of this Agreement and of the Amended Development Plan shall not be modified or amended except by mutual agreement in writing among the City, the Developer and the Corporation (provided that if the Corporation has already transferred the Project Site to the Developer pursuant to Section 2.2(c), no agreement of the Corporation is necessary). This Agreement shall be binding upon and inure to the benefit of the City, the Developer and the Corporation and their respective assigns and successors in interest or title to all or any portion of the Redevelopment Area; provided, neither the Corporation nor the Developer may assign its rights under this Agreement except in accordance with the provisions of Section 6.2. Section 6.2 Right to Transfer the Project Site and Redevelopment Project. (a) Transfer. Subject to the provisions of subsections (b) and (c) below, the Developer or the Corporation may voluntarily sell, lease, assign, transfer, convey and/or otherwise dispose of (hereinafter collectively referred to as a “Transfer”) its respective interest in the Redevelopment Area or any portion thereof to any entity without the City’s prior written consent, if the transferor provides written notice to the City within 30 days following such Transfer. Upon a Transfer, unless otherwise expressly elected by the transferor, all of the transferor’s rights and obligations hereunder with respect to the subject property, including, without limitation, those concerning construction, maintenance, use, tax abatement and the payment of PILOTs and payments to emergency service districts, shall transfer to such transferee, and the transferor shall be released from any and all further obligations under this Agreement with respect to the subject property. (b) Transfer to Third Party Prior to Completion of Construction. If the proposed Transfer (i) is to a party other than the Corporation or an Affiliate and (ii) occurs before the City’s acceptance or deemed acceptance of the Certificate of Substantial Completion, then such Transfer shall include an assignment of this Agreement and be subject to the requirements of subsection (c) below and to the City Administrator’s prior written consent (which consent shall not be unreasonably withheld or delayed upon a reasonable demonstration that the proposed transferee is sufficiently experienced and financially capable to undertake and complete the Redevelopment Project and the proposed assignee provides evidence to the City Counselor’s satisfaction that it will satisfy the requirements of Section 2.7 and Section 6.10 at the time of assignment). In the event of any Transfer under this subsection, all rights and obligations of the transferor -9- hereunder with respect to the subject property, including, without limitation, those concerning construction, maintenance, use, tax abatement and the payment of PILOTs and payments to emergency service districts, shall transfer to the transferee, and the transferor shall be released from any and all further obligations under this Agreement with respect to the subject property. (c) Transferee Agreement. No such Transfer shall occur without the prior execution of a Transferee Agreement with the City. The parties agree that the intention of each Transferee Agreement is to protect the transferor and the City by ensuring that transferees of property within the Redevelopment Area receive actual notice of the rights, duties and obligations contained in this Agreement prior to taking ownership, and nothing contained in a Transferee Agreement that is in accordance with Exhibit C shall be deemed to impose any rights, duties or obligations that are not imposed pursuant to this Agreement. (d) Financing. Notwithstanding anything herein to the contrary, the City hereby approves, and no prior consent or Transferee Agreement shall be required in connection with, the right of a Party to encumber or collaterally assign its interest in the Redevelopment Area or any portion thereof or its rights and interests in this Agreement 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 the right of the holder of any such encumbrance or transferee of any such collateral assignment (or trustee or agent on its behalf) to transfer such interest by foreclosure or transfer in lieu of foreclosure under such encumbrance or collateral assignment; provided that all entities lending credit to such Party that will obtain a secured interest in the Party’s interest in the Redevelopment Area and the Redevelopment Project, through a mortgage, deed of trust or other security instrument, will include the following language (or such other language acceptable to the City Attorney) in the applicable mortgage, deed of trust or other security instrument: Recognition of Lender to terms of Development Agreement. Lender agrees that for so long as the [property description] is subject to and receiving abatement of ad valorem real property taxes pursuant to the Development Agreement dated as of [*Date*], 2023 among the City of Jefferson, Missouri, Daegens Consortium, LLC and the Jefferson Redevelopment Corporation, Inc., the [Mortgage] shall be subject to the terms of the Development Agreement and the Lender’s rights under such [Mortgage] shall be subordinate to the payment of the PILOTs and other costs under the Development Agreement. Section 6.3 Indemnification and Hold Harmless. (a) The indemnification and covenants contained in this Section shall survive expiration or earlier termination of this Agreement. (b) The Developer hereby agrees that, anything to the contrary herein notwithstanding, it will defend, indemnify and hold harmless the City, its governing body members, employees and agents against any and all claims, demands, actions, causes of action, losses, damages, injuries, liabilities and/or expenses (including attorneys’ fees and court costs) resulting from, arising out of, or in any way connected with (i) the Developer’s or the Corporation’s failure to comply with any provision of this Agreement, (ii) the negligence or intentional misconduct of the Developer, the Corporation or an Affiliate, or their respective officers, employees and agents, (iii) the presence of hazardous wastes, hazardous materials or other environmental contaminants on any property within the Redevelopment Area, or (iv) otherwise arising out of the construction of the Redevelopment Project, the adoption of the Amended Development Plan, the administration of this Agreement or the Chapter 100 Transaction. If the validity or construction of Chapter 353, the Approving Ordinance and/or any other ordinance of the City adopted in connection with this Agreement, the Amended Development Plan or the Chapter 100 Transaction or affecting the proposed Redevelopment Project are contested in court, the Developer shall defend, hold harmless and indemnify the -10- City from and against all claims, demands and/or liabilities of any kind whatsoever including, without limitation, any claim for attorney fees and court costs, and the Developer shall pay any monetary judgment and all court costs rendered against the City, if any. (c) Notwithstanding anything herein to the contrary, the City shall not be liable to the Developer or the Corporation for damages or otherwise if all or any part of Chapter 353, the Approving Ordinance and/or any other ordinance of the City adopted in connection with this Agreement, the Amended Development Plan, the Chapter 100 Transaction or the Redevelopment Project 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. (d) Notwithstanding the foregoing terms of this Section, the Developer is not obligated to defend, hold harmless or indemnify the City with respect to any matter or expense resulting from or arising out of the gross negligence or willful misconduct of the City. Section 6.4 Notice. Whenever notice or other communication is called for herein to be given or is otherwise given pursuant hereto, it shall be in writing and shall be sufficiently given or delivered if dispatched by certified United States first-class mail, postage prepaid, or delivered personally, addressed as follows: (a) In the case of the City, to: City of Jefferson 320 E. McCarty Street Jefferson City, Missouri 65101 Attn: City Counselor with a copy to: Gilmore & Bell, P.C. One Metropolitan Square 211 N. Broadway, Suite 2000 St. Louis, Missouri 63102 Attn: Mark A. Spykerman, Esq. (b) In the case of the Developer, to: Daegens Consortium, LLC 3918 Stockman Lane Jefferson City, Missouri 65109 Attn: ________________ with a copy to: Bandre’ Hunt & Snider, LLC 227 Madison Street Jefferson City, Missouri 65101 Attn: Tom Snider, Esq. -11- (c) In the case of the Corporation, to: Jefferson Redevelopment Corporation, Inc. c/o City of Jefferson 320 E. McCarty Street Jefferson City, Missouri 65101 Attn: City Counselor All said notices by mail shall be deemed given on the day of deposit in the mail. A change of designated officer or address may be made by a Party by providing written notice of such request to the other Parties. Section 6.5 Severability. The provisions of this Agreement shall be deemed severable. If any provision of this Agreement is found by a court of competent jurisdiction to be invalid, the remaining provisions of this Agreement shall remain valid unless the court finds that (a) the valid provisions are so essentially and inseparably connected with and so dependent upon the invalid provision that it cannot be presumed that the Parties would have agreed to the valid provisions without the invalid one or (b) the valid provisions, standing alone, are incomplete and incapable of being executed in accordance with the intent of the Parties. Section 6.6 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Missouri. The parties hereto agree that any action at law, suit in equity or other judicial proceeding arising out of this Agreement shall be instituted only in the Circuit Court of Cole County, Missouri, or in federal court of the Eastern District of Missouri and each waives any objection based upon venue or forum non conveniens or otherwise. Section 6.7 Developer’s Right of Termination. At any time the Developer may, by giving written notice to the City and the Corporation, terminate this Agreement. Upon termination of this Agreement, the Parties shall have no further rights or obligations hereunder except as may expressly survive termination. Section 6.8 Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. Section 6.9 Reimbursement of City Expenses. The Developer shall reimburse the City or cause reimbursement to the City for the City’s reasonable and actual expenses incurred by the City in connection with the approval and administration of the Amended Development Plan, this Agreement and the Chapter 100 Documents, including, without limitation, bond counsel and trustee fees , to the extent not paid from funds deposited with the City pursuant to the Funding Agreement dated October 3, 2023 between the City and the Developer. Section 6.10 Federal Work Authorization Program. The Developer and any subsequent owner receiving tax abatement will comply with and satisfy the requirements of Section 285.530.2 of the Revised Statutes of Missouri, which requires (a) any business entity receiving tax abatement to, by sworn affidavit and provision of documentation, annually affirm its enrollment and participation in a federal work authorization program with respect to the employees working in connection with the business entity receiving tax abatement, and (b) every such business entity to annually sign an affidavit affirming that it does not knowingly employ any person who is an unauthorized alien in connection with the entity receiving tax abatement. The Developer or subsequent owner shall provide such affidavit and documentation to the City upon execution of this Agreement and annually on or before November 15 of each year during the term of this Agreement, beginning November 15, 2024. -12- Section 6.11 Recording. The Developer shall, within 30 days of execution, record this Agreement in the real property records of the Cole County Recorder of Deeds and upon such recording shall provide a copy to the City. Section 6.12 Electronic Transaction. The Parties agree that the transaction described herein may be conducted and related documents may be sent, received or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 6.13 Anti-Discrimination Against Israel Act. Pursuant to Section 34.600 of the Revised Statutes of Missouri, the Developer and the Corporation each certifies it is not currently engaged in and will not, for the duration of this Agreement, engage in a boycott of goods or services from (a) the State of Israel, (b) companies doing business in or with the State of Israel or authorized by, licensed by, or organized under the laws of the State of Israel, or (c) persons or entities doing business in the State of Israel. [Remainder of page intentionally left blank. Signature pages to follow.] -13- IN WITNESS WHEREOF, the Parties have set their hands and seals the day and year first above written. CITY OF JEFFERSON, MISSOURI (SEAL) By: Ron Fitzwater, Mayor Attest: Emily Donaldson, City Clerk ACKNOWLEDGMENT STATE OF MISSOURI ) ) SS. COUNTY OF COLE ) On this ___ day of ____________, 2023, before me, the undersigned, a Notary Public in and for said State, appeared RON FITZWATER, to me personally known, who, being by me duly sworn, did say that he is the Mayor of the CITY OF JEFFERSON, MISSOURI, a home-rule city and political subdivision of the State of Missouri, and that the seal affixed to the foregoing instrument is the corporate seal of said City, and that said instrument was signed and sealed by authority of its City Council, and said officer acknowledged said instrument to be executed for the purposes therein stated and as the free act and deed of said City. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written. Name: ______________________________________ Notary Public in and for said State My Commission Expires: PLEASE AFFIX SEAL FIRMLY AND CLEARLY IN THIS BOX -14- DAEGENS CONSORTIUM, LLC, a Missouri limited liability company By: Name: Title: ACKNOWLEDGMENT STATE OF MISSOURI ) ) SS. COUNTY OF COLE ) On this _____ day of ___________, 2023, before me, the undersigned, a Notary Public in and for said State, appeared _______________, to me personally known, who, being by me duly sworn, did say that he is the _________ of DAEGENS CONSORTIUM, LLC, a Missouri limited liability company, and that said instrument was signed on behalf of said company by authority of its governing body, and said officer acknowledged said instrument to be executed for the purposes therein stated and as the free act and deed of said company. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written. Name: Notary Public in and for said State My Commission Expires: PLEASE AFFIX SEAL FIRMLY AND CLEARLY IN THIS BOX [Development Agreement] -15- JEFFERSON REDEVELOPMENT CORPORATION, INC. By: Name: Title: ACKNOWLEDGMENT STATE OF MISSOURI ) ) SS. COUNTY OF COLE ) On this _____ day of _________, 2023, before me, the undersigned, a Notary Public in and for said State, appeared ___________, to me personally known, who, being by me duly sworn, did say that he is the ___________ of the JEFFERSON REDEVELOPMENT CORPORATION, INC., a Missouri urban redevelopment corporation, and that said instrument was signed on behalf of said corporation by authority of its governing body, and said officer acknowledged said instrument to be executed for the purposes therein stated and as the free act and deed of said corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written. Name: Notary Public in and for said State My Commission Expires: PLEASE AFFIX SEAL FIRMLY AND CLEARLY IN THIS BOX [Development Agreement] EXHIBIT A LEGAL DESCRIPTION OF THE REDEVELOPMENT AREA The land situated in the County of Cole, State of Missouri, and described as follows: TRACT I INLOTS NOS. 622, 623, 624, 625, 626, 627 AND 628, IN THE CITY OF JEFFERSON, MISSOURI. EXCEPT THAT PART OF INLOT NO. 622 CONVEYED TO JOSEPH A KOLB ET AL BY DEED OF RECORD IN BOOK 329, PAGE 465, COLE COUNTY RECORDER'S OFFICE. ALSO, ALL THAT PART OF INLOT NO. 621, IN THE CITY OF JEFFERSON, MISSOURI LYING AND SITUATE ON THE SOUTH SIDE OF GOOSE CREEK BEING ONE HALF THEREOF, MORE OR LESS. EXCEPT THAT PART OF INLOT NO. 621 CONVEYED TO JOSEPH A KOLB, ET AL BY DEED OF RECORD IN BOOK 329, PAGE 465, COLE COUNTY RECORDER'S OFFICE. EXHIBIT B FORM OF CERTIFICATE OF SUBSTANTIAL COMPLETION CERTIFICATE OF SUBSTANTIAL COMPLETION DAEGENS CONSORTIUM, LLC (the “Developer”), pursuant to that certain Development Agreement dated as of [*Date*], 2023 (the “Agreement”), among the City of Jefferson, Missouri (the “City”), the Developer and the Jefferson Redevelopment Corporation, Inc., hereby certifies to the City as follows: 1. That as of _______________, 20___, the Minimum Work has been substantially completed in accordance with the Agreement. 2. The Redevelopment Project has been completed in a workmanlike manner and in accordance with all applicable zoning, building and other permits issued by the City. 3. Lien waivers for the Minimum Work have been obtained. 4. This Certificate of Substantial Completion is accompanied by the project architect’s certificate of substantial completion on AIA Form G-704 (or the substantial equivalent thereof), a copy of which is attached hereto as Appendix A and by this reference incorporated herein, certifying that the Minimum Work has been substantially completed in accordance with the Agreement. 5. This Certificate of Substantial Completion is being issued by the Developer to the City in accordance with the Agreement to evidence the Developer’s satisfaction of all obligations and covenants with respect to the Redevelopment Project. 6. The City’s acceptance (below) in writing to this Certificate of Substantial Completion and the recordation of this Certificate of Substantial Completion with the Cole County Recorder of Deeds, shall evidence the satisfaction of the Developer’s agreements and covenants to complete the Minimum Work. 7. This Certificate of Substantial Completion is given without prejudice to any rights against third parties which exist as of the date hereof or which may subsequently come into being. 8. All certifications or statements made or set forth in this Certificate of Substantial Completion are made solely for the benefit of the City and shall not be relied upon or used for any purpose by any third party in any proceeding, claim or contest of any kind, nature or character. 9. All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement. B-2 IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this _____ day of __________, 20___. DAEGENS CONSORTIUM, LLC By: Name: Title: ACCEPTED: CITY OF JEFFERSON, MISSOURI By: Mayor (Insert Notary Form(s) and Legal Description; Attach AIA Form G-704) EXHIBIT C FORM OF TRANSFEREE AGREEMENT This TRANSFEREE AGREEMENT (this “Transferee Agreement”) is entered into this _____ day of _______________, 20___, by and between the CITY OF JEFFERSON, MISSOURI (the “City”) and _______________, a [state][entity type] (the “Transferee”). RECITALS A. The real property to be purchased by the Transferee and legally described in Exhibit A attached hereto (the “Redevelopment Area”) is part of the “Redevelopment Project” described in the Amended and Restated Development Plan Simonsen Redevelopment Project (the “Amended Development Plan”) approved by the City pursuant to Ordinance _________ adopted by the City Council on December 18, 2023 (the “Approving Ordinance”). B. The Redevelopment Area and the Redevelopment Project are subject to that certain Development Agreement dated as of [*Date*], 2023 (the “Development Agreement”) among the City, Daegens Consortium, LLC (the “Developer”) and the Jeffereson Redevelopment Corporation, Inc., which Development Agreement was recorded in the Cole County Recorder of Deeds Office on _________, 2023, as Document No. _____. C. Section 6.2 of the Development Agreement requires, as a condition precedent to certain transfers of the Redevelopment Area, that the proposed transferee enter into and deliver to the City this Transferee Agreement, obligating the Transferee to comply with the requirements of the Amended Development Plan and the obligations of the Developer under the Development Agreement. D. The parties desire to enter into this Transferee Agreement to satisfy the conditions precedent set forth in Section 6.2 of the Development Agreement. NOW, THEREFORE, for and in consideration of the promises and the covenants entered herein, the City and the Transferee agree as follows: 1. The Transferee has entered into a purchase contract with the Developer, or an authorized successor or assign, pursuant to which the Transferee will acquire the Redevelopment Area. 2. The Transferee acknowledges that it has been provided with and/or has reviewed the Approving Ordinance and the Development Agreement. 3. The Transferee acknowledges and agrees that its acquisition, use and enjoyment of the Redevelopment Area and any future disposition of the the Redevelopment Area are subject to the terms of the Development Agreement. 4. The Transferee acknowledges that in the event of the sale, lease, sublease, assignment or other voluntary or involuntary disposition of the Redevelopment Area, the obligations of the Development Agreement shall continue and shall inure to and be binding upon the heirs, executors, administrators, successors and assigns of the respective subsequent transferees as if they were in every case specifically named and shall be construed as a covenant running with the land and enforceable as if such purchaser, tenant, transferee or other possessor thereof were originally a party to and bound by the Developme nt Agreement. The Transferee assumes the duty to notify any purchaser, tenant, transferee or other possessor of the Redevelopment Project of its rights, duties and obligations under the Development Agreement. C-2 5. The parties agree that the intention of this Transferee Agreement is to ensure that the Transferee has actual notice of the rights, duties and obligations contained in the Development Agreement prior to taking ownership of the Redevelopment Area, and nothing contained in this Transferee Agreement shall be deemed to impose any rights, duties or obligations that are not imposed pursuant to the Development Agreement. 6. This Transferee Agreement shall be governed by the laws of the State of Missouri. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. CITY OF JEFFERSON, MISSOURI (SEAL) By: Mayor Attest: City Clerk [TRANSFEREE] By: Name: Title: C-3 EXHIBIT A TO TRANSFEREE AGREEMENT LEGAL DESCRIPTION OF THE REDEVELOPMENT AREA The land situated in the County of Cole, State of Missouri, and described as follows: TRACT I INLOTS NOS. 622, 623, 624, 625, 626, 627 AND 628, IN THE CITY OF JEFFERSON, MISSOURI. EXCEPT THAT PART OF INLOT NO. 622 CONVEYED TO JOSEPH A KOLB ET AL BY DEED OF RECORD IN BOOK 329, PAGE 465, COLE COUNTY RECORDER'S OFFICE. ALSO, ALL THAT PART OF INLOT NO. 621, IN THE CITY OF JEFFERSON, MISSOURI LYING AND SITUATE ON THE SOUTH SIDE OF GOOSE CREEK BEING ONE HALF THEREOF, MORE OR LESS. EXCEPT THAT PART OF INLOT NO. 621 CONVEYED TO JOSEPH A KOLB, ET AL BY DEED OF RECORD IN BOOK 329, PAGE 465, COLE COUNTY RECORDER'S OFFICE.