5.3 Resolutions regarding TIF 2-2 and Business Subsidy

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Exhibit A Summary of Business Subsidy AgreementlTIF Contract Proposed Hotel Development DEVELOPER: Level Contracting LLC (or an assigned related entity) DEVELOPER COMMITMENTS: 1. Construct the new 69 -unit hotel on #29230535. Construction shall be substantially completed by December 31, 2024. Submit copies of paid invoices or similar evidence acceptable to the City showing that the business has incurred eligible expenses totaling at least $400,000. If documented expenses are less that this amount, TIF assistance will be reduced accordingly. Within two (2) years after the occupancy the new facility (or benefit date), the Developer will create 10 full -time employment opportunities or job equivalents. Based on the City's Business Subsidy Policy (adopted 2/1/2011), the recipient must create 1 fulltime job that pays at least: 175% of the federal minimum wage, which can be fulfilled as an hourly wage, or some combination of hourly wage and employer paid health insurance benefits equal to 175% of the federal minimum wage. The federal minimum wage is $7.25 per hour for 2023. Based on the City's policy, the Developer would have to create one job at $12.69 per hour. 4. Total financial assistance to this Developer is expected to exceed $150,000. Therefore, a separate business subsidy public hearing is required for this project. The business subsidy hearing will be held on November 6, 2023. 5. The Developer will be expected to file an annual job and wage summary, by March 1 st of each year, with the City or as required by any state or local policy requirements. 6. The Developer agrees to maintain operations for at this location for five years from date of occupancy of the building or benefit date. 7. If the Developer fails to create and maintain all jobs on the new site, or the business should cease operations in the City, and fails to correct such conditions after proper notice has been given by the City, the City will declare the contract in default and move to rescind the agreement. If default occurs, the Developer may be required to pay back a prorated share of assistance. s. Refrain from selling the development property and /or assigning its rights under this agreement to another unrelated party without the prior written approval of the City. Sale or assignment without the City's approval will be considered a default.