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Special Council Meeting <br />3-10-08 <br />Page 6 <br />tax. We have never had it where you have had two years in a row of that. However, you <br />cannot proceed from that assumption. <br />Dr. Parker asked if when we looked at Progressive and income generated, we figured <br />expected revenue from them. We discussed with Progressive in the third campus how many <br />jobs they would have to bring in and what type of abatement we would give them. Mayor <br />Rinker asked Dr. Parker if he was talking about the incentive grant. Dr. Parker said he is. At <br />that point, when we talked about it, what was our projected revenue based upon what they were <br />telling us? Mr. Brett replied according to them, $60 million and up for over 20 years. <br />Mayor Rinker stated that his recollection was that there would be pretty much tracking <br />the trend of increase year in and year out that it would just continue to rise. <br />Dr. Parker asked what it is in dollars. <br />Mr. Brett replied that is going to compound relatively quickly. On a baseline, we get <br />approximately $6 million from Progressive now so in the first year that would have been <br />$420,000 additional. There was probably additional growth in there as well on the remaining <br />campus. If you took that 7% and it compounded it is going to double every 10 years, roughly <br />speaking. <br />To take it to the next step, Mayor Rinker stated that one of the things that will happen is <br />we will renegotiate only because it has been so long and they have not delivered. We never <br />finalized the incentive grant. Nothing was ever ratified, nothing was finalized. That is going to <br />be a player to be named later. That is going to have to be revisited in some fashion assuming <br />they ever come back to the table and say they want to move forward. <br />Mr. Marquardt asked what leverage we would have. Mayor Rinker replied that they have <br />not hit the revenues that they said they would hit before. We never pegged a number other than <br />we were making projections. The question is where do we peg? Is it a number? Is it an event? <br />What would the percentages be? <br />Mr. Marquardt stated he does not think we have any leverage then. Mayor Rinker agreed <br />that we don't have huge leverage either, but what these guys have done is they have come back <br />a couple of times and have made assumptions that we need to do certain things because of the <br />Development Agreement. For example, we were hearing for the better part of the year that they <br />wanted us to transfer the property. We said no we are not going to do it. There was no reason <br />to do it. There is going to be an issue about what to do with that barn at some point. We are <br />going to have to take care of that. And the construction of the road. There are a lot of details. <br />You have to go back and revisit on the overall development plan and how that gets handled is <br />not a brand new ballgame, but those are issues that have to be pinned down. We just never got <br />that far. The assumption was always the way that they were negotiating that we were going to <br />keep increasing year in and year out. That not being the case, we have to look at the dollars.