$22,300,000 CITY OF LEE S SUMMIT, MISSOURI TAX INCREMENT REVENUE BONDS (SUMMIT FAIR PROJECT) SERIES 2011

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1 NEW ISSUE Book Entry Only NOT RATED In the opinion of Gilmore & Bell P.C. Bond Counsel under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986 as amended the interest on the Series 2011 Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal and Missouri income tax purposes except as described in this Official Statement and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. The Series 2011 Bonds have not been designated as qualified tax-exempt obligations within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986 as amended. See TAX MATTERS in this Official Statement CITY OF LEE S SUMMIT MISSOURI TAX INCREMENT REVENUE BONDS (SUMMIT FAIR PROJECT) SERIES 2011 Dated: Date of Delivery Due: As shown below The Series 2011 Bonds are issuable only as fully-registered bonds without coupons and when issued will be registered in the name of Cede & Co. as registered owner and nominee for The Depository Trust Company ( DTC ) New York New York. DTC will act as securities depository for the Series 2011 Bonds. Purchases of the Series 2011 Bonds will be made in book entry form in the denomination of 5000 or any integral multiple thereof. Purchasers will not receive certificates representing their interests in Series 2011 Bonds purchased. So long as Cede & Co. is the registered owner of the Series 2011 Bonds as nominee of DTC references herein to the Owners or registered owners shall mean Cede & Co. as aforesaid and shall not mean the Beneficial Owners (herein defined) of the Series 2011 Bonds. Principal of and semiannual interest on the Series 2011 Bonds will be paid from moneys available therefor under the Indenture (herein defined) by UMB Bank N.A. Kansas City Missouri as Trustee (the Trustee ). So long as DTC or its nominee Cede & Co. is the Owner such payments will be made directly to such Owner. DTC is expected in turn to remit such principal and interest to the DTC Participants (herein defined) for subsequent disbursement to the Beneficial Owners. Interest on the Series 2011 Bonds will be payable semiannually on each April 1 and October 1 beginning October The Series 2011 Bonds are being issued by the City of Lee s Summit Missouri (the City ) pursuant to a Trust Indenture dated as of June by and between the City and the Trustee (the Indenture ). The Series 2011 Bonds are limited obligations of the City payable solely from Bond proceeds Payments in Lieu of Taxes Economic Activity Tax Revenues (all as described herein) and moneys on deposit in a Debt Service Reserve Fund. The application of Economic Activity Tax Revenues to the payment of the Series 2011 Bonds as described herein is subject to annual appropriation by the City. THE SERIES 2011 BONDS DO NOT CONSTITUTE A GENERAL OBLIGATION OF THE CITY AND DO NOT CONSTITUTE AN INDEBTEDNESS OF THE CITY THE STATE OF MISSOURI (THE STATE ) OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL CHARTER OR STATUTORY PROVISION OR LIMITATION. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWERS OF THE CITY THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE SERIES 2011 BONDS. THE ISSUANCE OF THE SERIES 2011 BONDS SHALL NOT DIRECTLY INDIRECTLY OR CONTINGENTLY OBLIGATE THE CITY THE STATE OR ANY POLITICAL SUBDIVISION THEREOF TO LEVY ANY FORM OF TAXATION THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT. The Series 2011 Bonds involve a high degree of risk and prospective purchasers should read the section herein captioned OWNERS RISKS. The Series 2011 Bonds are not suitable investments for all persons. Prospective purchasers should carefully evaluate the risks and merits of an investment in the Series 2011 Bonds should confer with their own legal and financial advisors and should be able to bear the risk of loss of their investment in the Series 2011 Bonds before considering a purchase of the Series 2011 Bonds. The Series 2011 Bonds may only be sold to certain purchasers. See NOTICE TO INVESTORS herein. The Series 2011 Bonds are subject to redemption prior to maturity in certain circumstances as described herein. It is expected that a substantial portion of the Series 2011 Bonds will be redeemed prior to maturity. See THE BONDS Redemption Provisions and PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS herein. MATURITY SCHEDULE % Term Bonds due October priced at 99.50% CUSIP No AK % Term Bonds due October priced at 99.00% CUSIP No AM % Term Bonds due April priced at 99.00% CUSIP No AL7 The Series 2011 Bonds are offered when as and if issued by the City subject to the approval of legality by Gilmore & Bell P.C. Kansas City Missouri Bond Counsel. Certain legal matters related to this Official Statement will be passed upon by Gilmore & Bell P.C. St. Louis Missouri. Certain legal matters will be passed upon for the City by Stinson Morrison Hecker LLP Kansas City Missouri. Certain legal matters will be passed upon for the Developer by Lewis Rice & Fingersh L.C. Kansas City Missouri and The Katz Law Firm Overland Park Kansas. Thompson Coburn LLP St. Louis Missouri serves as counsel to the Underwriter. It is expected that the Series 2011 Bonds will be available for delivery on or about June The date of this Official Statement is June

2 CITY OF LEE S SUMMIT MISSOURI 220 SE Green Lee s Summit Missouri MAYOR Randy Rhoads CITY COUNCIL Ed Cockrell Allan S. Gray II James Hallam Kathryn Hofmann Robert T. Johnson David Mosby Joseph Spallo Brian Whitley CITY MANAGER Steve Arbo CITY S SPECIAL COUNSEL Stinson Morrison Hecker LLP Kansas City Missouri TRUSTEE UMB Bank N.A. Kansas City Missouri BOND COUNSEL Gilmore & Bell P.C. Kansas City Missouri UNDERWRITER Stifel Nicolaus & Company Incorporated St. Louis Missouri UNDERWRITER S COUNSEL Thompson Coburn LLP St. Louis Missouri

3 No dealer broker salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Series 2011 Bonds offered hereby other than those contained in this Official Statement and if given or made such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series 2011 Bonds offered hereby by any person in any jurisdiction in which it is unlawful for such person to make such offer solicitation or sale. The information set forth herein has been furnished by the City and other sources which are believed to be reliable but such information is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the City. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall under any circumstances create any implication that there has been no change in the affairs of the City since the date hereof. The Series 2011 Bonds have not been registered with the Securities and Exchange Commission under the Securities Act of 1933 as amended or under any state securities or blue sky laws. The Series 2011 Bonds are offered pursuant to an exemption from registration with the Securities and Exchange Commission. In making an investment decision investors must rely on their own examination of the terms of this offering including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary may be a criminal offense. CAUTIONARY STATEMENTS REGARDING FORWARD- LOOKING STATEMENTS IN THIS OFFICIAL STATEMENT Certain statements included or incorporated by reference in this Official Statement constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 Section 21E of the United States Securities Exchange Act of 1934 as amended and Section 27A of the United States Securities Act of 1933 as amended. Such statements are generally identifiable by the terminology used such as plan expect estimate anticipate projected budget or other similar words. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE FUTURE RISKS AND UNCERTAINTIES INCLUDE THOSE DISCUSSED IN THE OWNERS RISKS SECTION OF THIS OFFICIAL STATEMENT. NEITHER THE CITY NOR ANY OTHER PARTY PLANS TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD-LOOKING STATEMENTS IF OR WHEN THEIR EXPECTATIONS OR EVENTS CONDITIONS OR CIRCUMSTANCES UPON WHICH SUCH STATEMENTS ARE BASED OCCUR.

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5 TABLE OF CONTENTS Page INTRODUCTION...1 Purpose of the Official Statement...1 The City...1 The Series 2011 Bonds...1 Security for the Bonds...2 Revenue Projections...2 Owners' Risks...2 Definitions and Summary of Documents...3 Continuing Disclosure...3 THE BONDS...3 Authorization; Description of the Bonds...3 Registration Transfer and Exchange of Bonds.3 Redemption Provisions...4 Payment and Discharge Provisions...6 Defeasance Provisions...7 Book Entry Only System...7 NOTICE TO INVESTORS...9 SOURCES OF PAYMENT AND SECURITY FOR THE BONDS...11 Limited Obligations; Sources of Payment...11 Revenues...11 Indenture Funds and Accounts...14 Additional Bonds...16 ESTIMATED SOURCES AND USES OF FUNDS...18 TAX INCREMENT FINANCING IN MISSOURI...18 Overview...18 The Act...19 Assessments and Collections of Ad Valorem Taxes...19 Tax Delinquencies...21 Economic Activity Tax Revenues...21 OWNERS' RISKS...22 Nature of the Obligations...22 Tax Increment Financing Litigation...22 Risk of Non-Appropriation...23 Financial Feasibility of the Shopping Center...23 Reliance on the Developer Tenants and Subsequent Property Owners...23 No Mortgage of the Redevelopment Project...24 Risk of Failure to Maintain Levels of Assessed Valuations...25 Changes in State and Local Tax Laws...25 Reduction in State and Local Tax Rates...25 Limitations on Remedies...26 Early Redemption Prior to Maturity...26 (i) Page Changes in Market Conditions...26 Factors Affecting Economic Activity Tax Revenues...26 Projections...27 Availability of Revenues for Special Mandatory Redemption of the Series 2011 Bonds...27 Debt Service Reserve Fund...27 Determination of Taxability...27 Risk of Audit...27 Lack of Rating and Market for the Series 2011 Bonds; Restrictions on Transfer...28 PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS...28 SUMMIT FAIR...32 Overview...32 Ownership of Shopping Center...32 The Developer...33 Environmental Assessment...33 The Architect and the Contractor...33 The Manager...34 Construction Operation and Reciprocal Easement Agreement...35 Competition...35 Community Improvement District...35 SUMMARY OF LEASES; OCCUPANTS...36 Leases...36 Occupants...43 THE CITY...45 General...45 Population and Housing...46 Employment...47 Income Statistics...48 ABSENCE OF LITIGATION...49 LEGAL MATTERS...49 TAX MATTERS...49 Opinion of Bond Counsel...49 Other Tax Consequences...50 UNDERWRITING...51 CERTAIN RELATIONSHIPS...51 PROJECTIONS...51 NO RATINGS...52 MISCELLANEOUS...52 Appendix A Tax Increment Finance Revenue Projection Study City of Lee s Summit Missouri Appendix B Definitions and Summary of the Indenture; Continuing Disclosure Appendix C Form of Opinion of Bond Counsel

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7 OFFICIAL STATEMENT CITY OF LEE S SUMMIT MISSOURI TAX INCREMENT REVENUE BONDS (SUMMIT FAIR PROJECT) SERIES 2011 INTRODUCTION This introduction is only a brief description and summary of certain information contained in this Official Statement and is qualified in its entirety by reference to the more complete and detailed information contained in the entire Official Statement including the cover page and appendices hereto and the documents summarized or described herein. A full review should be made of the entire Official Statement. Purpose of the Official Statement The purpose of this Official Statement is to furnish information relating to (1) the City of Lee s Summit Missouri (the City ) (2) the City s Tax Increment Revenue Bonds (Summit Fair Project) Series 2011 (the Series 2011 Bonds and together with any Additional Bonds the Bonds ) and (3) a retail development known as Summit Fair ( Summit Fair or the Shopping Center ) anchored by a Macy s and a J.C. Penney s and developed by RED Lee s Summit East LLC (the Developer ). For the definition of certain capitalized terms used herein and not otherwise defined see Appendix B Definitions and Summary of the Indenture; Continuing Disclosure hereto. The City The issuer of the Series 2011 Bonds is the City of Lee s Summit Missouri a political subdivision of the State of Missouri. The City located in Jackson County Missouri is a home rule charter city. See the caption THE CITY herein. The Series 2011 Bonds The Series 2011 Bonds are being issued pursuant to The Real Property Tax Increment Allocation Redevelopment Act Section et seq. of the Revised Statutes of Missouri as amended (the Act ) and the Trust Indenture dated as of June (the Indenture ) between the City and UMB Bank N.A. Kansas City Missouri (the Trustee ). The Series 2011 Bonds are being issued for the purpose of providing funds to (a) finance certain Redevelopment Project Costs (b) fund a debt service reserve for the Series 2011 Bonds (c) capitalize interest on the Series 2011Bonds and (d) pay the costs of issuance of the Series 2011 Bonds. A description of the Series 2011 Bonds is contained in this Official Statement under the caption THE BONDS. All references to the Series 2011 Bonds are qualified in their entirety by the definitive form thereof and the provisions with respect thereto included in the Indenture. The Series 2011 Bonds are subject to redemption prior to maturity as described herein. If the revenues are received as projected (see Appendix A herein) a substantial portion of the Series 2011 Bonds should be redeemed prior to their stated maturity. See THE SERIES 2011 BONDS Redemption Provisions and PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS herein.

8 Security for the Bonds The Bonds and the interest thereon are limited obligations of the City payable solely from the Pledged Revenues and other moneys pledged thereto and held by the Trustee. See SOURCES OF PAYMENT AND SECURITY FOR THE BONDS herein. A debt service reserve fund will be funded in the amount of from Bond proceeds as additional security for the Series 2011 Bonds. THE BONDS ARE NOT SECURED BY A MORTGAGE ON ANY PROPERTY IN THE REDEVELOPMENT AREA. HOWEVER THE ACT PROVIDES THAT THE PAYMENTS IN LIEU OF TAXES THAT ARE DUE AND OWING SHALL CONSTITUTE A LIEN AGAINST THE REAL ESTATE IN THE REDEVELOPMENT AREA FROM WHICH THEY ARE DERIVED. UPON A DEFAULT IN THE PAYMENT OF ANY PAYMENTS IN LIEU OF TAXES THE LIEN FOR SUCH UNPAID PAYMENTS IN LIEU OF TAXES MAY BE ENFORCED AS PROVIDED IN THE ACT. The Bonds do not constitute a debt of the City the State or any political subdivision thereof and do not constitute an indebtedness within the meaning of any constitutional charter or statutory debt limitation or restriction. The issuance of the Bonds shall not directly indirectly or contingently obligate the City the State or any political subdivision thereof to levy any form of taxation therefor or to make any appropriation for their payment. Because the Act provides that 23 years is the maximum amount of time for the retirement of obligations incurred to finance redevelopment project costs the obligation of the City to transfer Net Revenues to the Trustee for the repayment of the Bonds terminates on April whether or not the principal amount thereof or interest thereon has been paid in full. Revenue Projections A study entitled Tax Increment Finance Revenue Projection Study City of Lee s Summit Missouri dated as of May (the Projections ) has been prepared by Alvarez & Marsal Kansas City Missouri. A copy of the Projections is attached hereto as Appendix A. See the caption PROJECTIONS herein. Neither the City nor the Underwriter make any representation or warranty (express or implied) as to the accuracy or completeness of any financial technical or statistical data or any estimates projections assumptions or expressions of opinion set forth in the Projections. Pursuant to the State law taxpayers who promptly pay their sales taxes are entitled to retain 2% of the amount of taxes owed. Because it can not be determined whether the taxpayers in the Redevelopment Area will promptly pay their sales taxes the Projections assume that all taxpayers will promptly pay their sales taxes and will retain 2% of the amount of the taxes owed. See PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS herein. Owners Risks The Series 2011 Bonds involve a high degree of risk and prospective purchasers should read the section herein captioned OWNERS RISKS. The Series 2011 Bonds are not suitable investments for all persons and prospective purchasers should carefully evaluate the risks and merits of an investment in the Series 2011 Bonds should confer with their own legal and financial advisors and should be able to bear the risk of loss of their investment in the Series 2011 Bonds before considering a purchase of the Series 2011 Bonds. -2-

9 Definitions and Summary of Documents Definitions of certain words and terms used in this Official Statement and a summary of certain provisions of the Indenture and the Continuing Disclosure Agreement are included in this Official Statement in Appendix B hereto. Such definitions and summaries do not purport to be comprehensive or definitive. All references herein to the Indenture and the Continuing Disclosure Agreement are qualified in their entirety by reference to the definitive forms of such documents copies of which may be obtained from Stifel Nicolaus & Company Incorporated 501 N. Broadway 8th Floor St. Louis Missouri Continuing Disclosure The City covenants in the Continuing Disclosure Agreement to provide certain financial information relating to the City by not later than 180 days after the end of each fiscal year of the City commencing with the fiscal year ending June to provide certain financial information on a semi annual basis and to provide notices of the occurrence of certain enumerated events. See the caption Continuing Disclosure in Appendix B herein. THE BONDS The following is a summary of certain terms and provisions of the Bonds. Reference is hereby made to the Bonds and the provisions with respect thereto in the Indenture for the detailed terms and provisions thereof. Authorization; Description of the Bonds The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State of Missouri. The Bonds will be issuable as fully-registered bonds without coupons. Purchases of the Bonds will be made in book entry form only (as described below) in denominations of 5000 or any integral multiple thereof. Purchasers of the Bonds will not receive certificates representing their interests in the Bonds purchased. The Bonds will be dated as of the date of initial issuance and delivery thereof and will mature on the date and in the principal amount set forth on the cover page of this Official Statement. The Bonds will bear interest at the rate per annum set forth on the cover page hereof which interest will be payable semiannually on April 1 and October 1 in each year beginning on October Registration Transfer and Exchange of Bonds Any Bond may be transferred only upon the Register upon surrender thereof to the Trustee duly endorsed for transfer or accompanied by an assignment duly executed by the Owner or his attorney or legal representative in such form as shall be satisfactory to the Trustee. Upon any such transfer the City shall execute and the Trustee shall authenticate and deliver in exchange for such Bond a new fully registered Bond or Bonds registered in the name of the transferee of the same series and in any Authorized Denomination authorized by the Indenture. Any Bond upon surrender thereof at the corporate trust office of the Trustee together with an assignment duly executed by the Owner or his attorney or legal representative in such form as shall be satisfactory to the Trustee may at the option of the Owner thereof be exchanged for Bonds of the same maturity and series of any Authorized Denomination authorized by the Indenture bearing interest at the same rate and registered in the name of the Owner. No service charge shall be made for any registration transfer or exchange of Bonds but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds and such charge shall be paid before any such new Bond shall be delivered. The fees and charges of the Trustee for making any transfer or exchange and the expense of any bond printing necessary to effect any such transfer or exchange shall be paid by the City. In the event any registered owner fails to provide a correct taxpayer identification number to the Trustee the Trustee may -3-

10 impose a charge against such registered owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Section 3406 of the Code such amount may be deducted by the Trustee from amounts otherwise payable to such registered owner under the Indenture or under the Bonds. herein. The Series 2011 Bonds may only be sold to certain purchasers. See NOTICE TO INVESTORS Redemption Provisions Optional Redemption. The Series 2011 Bonds are subject to optional redemption by the City in whole or in part at any time on or after April at a redemption price equal to 100% of the principal amount of Series 2011 Bonds to be redeemed plus accrued interest to the redemption date. Scheduled Mandatory Redemption. The Series 2011 Bonds maturing on October October and April are subject to mandatory sinking fund redemption and payment prior to stated maturity on October 1 in each year at 100% of the principal amount thereof plus accrued interest to the redemption date without premium in accordance with the mandatory sinking fund schedule determined as set forth below: Term Bonds Maturing on October Year Principal Amount Final Maturity Term Bonds Maturing on October Year Principal Amount Final Maturity -4-

11 Term Bonds Maturing on April Year Principal Amount /1/ Final Maturity Credit Against Scheduled Mandatory Redemption. The Trustee shall make timely selection of such Series 2011 Bonds or portions thereof to be so redeemed in Authorized Denominations of principal amount in such equitable manner as the Trustee may determine and shall give notice thereof without further instructions from the City. At the option of the City to be exercised on or before the 45th day next preceding each mandatory redemption date the City may: (1) deliver Series 2011 Bonds to the Trustee for cancellation in the aggregate principal amount desired; or (2) furnish to the Trustee moneys together with appropriate instructions for the purpose of purchasing any Bonds from any owner thereof in the open market at a price not in excess of 100% of the principal amount thereof whereupon the Trustee shall use its best efforts to expend such funds for such purposes; or (3) elect to receive a credit in respect to the mandatory sinking fund redemption obligation under the Indenture for any Series 2011 Bonds which prior to such date have been redeemed (other than through the operation of the mandatory sinking fund requirements of the Indenture) and cancelled by the Trustee and not theretofore applied as a credit against any redemption obligation under the Indenture. Each Series 2011 Bond so delivered or previously purchased or redeemed shall be credited at 100% of the principal amount thereof on the obligation to redeem Series 2011 Bonds on the next mandatory redemption date applicable to Series 2011 Bonds that is at least 45 days after receipt by the Trustee of such instructions from the City and any excess of such amount shall be credited on future mandatory redemption obligations for Series 2011 Bonds in chronological order or such other order as the City may designate and the principal amount of Series 2011 Bonds to be redeemed on such future mandatory redemption dates by operation of the requirements of the Indenture shall be reduced accordingly; provided however the principal amount of any Series 2011 Bonds that have been subject to special mandatory redemption pursuant to the Indenture shall be credited by the Trustee ` mandatory redemption obligations for such maturity of the Series 2011 Bonds without further instruction from or designation by the City If the City intends to exercise any option granted by the provisions of clauses (1) (2) or (3) the City will on or before the 45th day next preceding the applicable mandatory redemption date furnish the Trustee a certificate indicating to what extent the provisions of said clauses (1) (2) and (3) are to be complied with in respect to such mandatory redemption payment. Special Mandatory Redemption. (a) The Series 2011 Bonds are subject to special mandatory redemption by the City on any Payment Date commencing on October in order of maturity at the redemption price of 100% of the principal amount being redeemed together with accrued interest thereon to the date fixed for redemption in an amount equal to the amount which is on deposit in the Redemption Account of the Debt Service Fund 40 days prior to each Payment Date (or if such date is not a Business Day the immediately preceding Business Day). (b) The Series 2011 Bonds are subject to special mandatory redemption by the City in whole but not in part on any date in the event that moneys in the Series 2011 Account of the Debt Service Fund and the Series 2011 Account of the Debt Service Reserve Fund are sufficient to redeem all of the Series 2011 Bonds at a redemption price of 100% of the Series 2011 Bonds Outstanding together with accrued interest thereon to the date fixed for redemption. -5-

12 Selection of Bonds to be Redeemed. Bonds shall be redeemed only in Authorized Denominations. When less than all of the Outstanding Bonds are to be optionally redeemed and paid prior to maturity such Bonds or portions of Bonds to be redeemed shall be selected in Authorized Denominations by the Trustee from such maturities and in such amounts as the City may determine. If less than all Outstanding Bonds of any maturity are to be redeemed the particular Bonds to be redeemed shall be selected by the Trustee from the Bonds of such maturity which have not previously been called for redemption by lot or in such other equitable manner as the Trustee may determine and which may provide for the selection for redemption of portions of the principal of Bonds equal to the minimum authorized denomination of the Bonds of a denomination larger than the minimum authorized denomination. In the case of a partial redemption of Bonds when Bonds of denominations greater than the minimum Authorized Denomination are then Outstanding then for all purposes in connection with such redemption each Authorized Denomination unit of face value shall be treated as though it was a separate Bond of the denomination of the minimum Authorized Denomination. If one or more but not all of the minimum Authorized Denomination units of principal amount represented by any Bond are selected for redemption then upon notice of intention to redeem such minimum Authorized Denomination unit or units the Owner of such Bond or his attorney or legal representative shall forthwith present and surrender such Bond to the Trustee (i) for payment of the redemption price (including the interest to the date fixed for redemption) of the minimum Authorized Denomination unit or units of principal amount called for redemption and (ii) for exchange without charge to the Owner thereof for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond of a denomination greater than minimum Authorized Denomination fails to present such Bond to the Trustee for payment and exchange as aforesaid said Bond shall nevertheless become due and payable on the redemption date to the extent of the minimum Authorized Denomination unit or units of principal amount called for redemption (and to that extent only) and shall cease to accrue interest on the principal amount so called for redemption. Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed official notice of any redemption of any Bond shall be given by the Trustee on behalf of the City by mailing a copy of an official redemption notice by first class mail postage prepaid at least 30 days prior to the date fixed for redemption to the Owner of the Bond or Bonds to be redeemed at the address shown on the Register; provided however that failure to give such notice by mailing as aforesaid to any Owner or any defect therein as to any particular Bond shall not affect the validity of any proceedings for the redemption of any other Bonds. On or prior to the date fixed for redemption moneys or Government Securities shall be deposited with the Trustee as provided in the Indenture to pay the Bonds called for redemption and accrued interest thereon to the redemption date. Upon the happening of the above conditions and notice having been given as provided in the Indenture the Bonds or the portions of the principal amount of Bonds thus called for redemption shall cease to bear interest on the specified redemption date provided moneys sufficient for the payment of the redemption price are on deposit at the place of payment at the time and shall no longer be entitled to the protection benefit or security of the Indenture and shall not be deemed to be Outstanding under the provisions of the Indenture. Payment and Discharge Provisions When the principal of and interest on all the Bonds have been paid in accordance with their terms or provision has been made for such payment as provided in the Indenture and provision also is made for paying all other sums payable under the Indenture including the fees and expenses of the Trustee and the Paying Agents to the date of payment of the Bonds then the right title and interest of the Trustee under the Indenture shall thereupon cease determine and be void and thereupon the Trustee shall cancel discharge and release the Indenture and shall execute acknowledge and deliver to the City such instruments of satisfaction and -6-

13 discharge or release as shall be required to evidence such release and the satisfaction and discharge of the Indenture and shall assign and deliver to the City any property at the time subject to the Indenture which may then be in the Trustee s possession except amounts in the Debt Service Fund required to be paid to the City under Indenture and except funds or securities in which such moneys are invested and held by the Trustee for the payment of the principal of and interest on the Bonds. Defeasance Provisions Bonds shall be deemed to be paid within the meaning of the Indenture when payment of the principal on such Bonds plus premium if any plus interest thereon to the due date thereof (whether such due date is by reason of maturity or upon redemption as provided in the Indenture or otherwise) either (1) has been made or caused to be made in accordance with the terms thereof or (2) provision therefor has been made by depositing with the Trustee in trust and irrevocably setting aside exclusively for such payment (i) moneys sufficient to make such payment or (ii) non-callable Government Securities maturing as to principal and interest in such amount and at such times as will ensure the availability of sufficient moneys to make such payment and the Trustee shall have received an opinion of Bond Counsel (which opinion may be based upon a ruling or rulings of the Internal Revenue Service) to the effect that such deposit of interest on any Bonds will not result in the interest on any Bonds then Outstanding and exempt from taxation for federal income tax purposes becoming subject to federal income taxes then in effect and that all conditions precedent to the satisfaction of the Indenture have been met. At such time as a Bond is deemed to be paid hereunder as aforesaid such Bond shall no longer be secured by or be entitled to the benefits of the Indenture except for the purposes of any such payment from such moneys or Government Securities. Book Entry Only System General When the Bonds are issued ownership interests will be available to purchasers only through a bookentry only system (the Book-Entry Only System ) maintained by The Depository Trust Company ( DTC ) New York New York. DTC will act as securities depository for the Bonds. Initially the Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC S partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate for each maturity of the Bonds will be issued in the aggregate principal amount of such maturity and will be deposited with DTC or the Trustee as its FAST agent. The following discussion will not apply to any Bonds issued in certificate form due to the discontinuance of the DTC Book-Entry Only System as described below. DTC and its Participants DTC the world s largest depository is a limited-purpose trust company organized under the New York Banking Law a banking organization within the meaning of the New York Banking Law a member of the Federal Reserve System a clearing corporation within the meaning of the New York Uniform Commercial Code and a clearing agency registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934 as amended. DTC holds and provides asset servicing for over 2.2 million issues of U.S. and non-u.s. equity issues corporate and municipal debt issues and money market instruments from over 100 countries that DTC s participants ( Direct Participants ) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants accounts. This eliminates the need for physical movement of securities certificates. Direct participants include both U.S. and non-u.s. securities brokers and dealers banks trust companies clearing corporations and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ( DTCC ). DTCC in turn is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation Fixed Income Clearing Corporation and Emerging Markets Clearing Corporation ( NSCC FICC and EMCC also subsidiaries of DTCC) as well as by the -7-

14 New York Stock Exchange Inc. the American Stock Exchange LLC and the National Association of Securities Dealers Inc. Access to the DTC system is also available to others such as both U.S. and non-u.s. securities brokers and dealers banks trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant either directly or indirectly (the Indirect Participants and together with the Direct Participants the Participants ). DTC has Standard & Poor s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at and Purchase of Ownership Interests Purchases of the Bonds under the DTC system must be made by or through Direct Participants which will receive a credit for the Bonds on DTC s records. The ownership interest of each actual purchaser of each Bond (the Beneficial Owner ) is in turn to be recorded on the Direct and Indirect Participants records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are however expected to receive written confirmations providing details of the transaction as well as periodic statements of their holdings from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interest in the Bonds except in the event that use of the book-entry system for the Bonds is discontinued. So long as Cede & Co. as nominee of DTC is the registered owner of any of the Bonds the Beneficial Owners of such Bonds will not receive or have the right to receive physical delivery of the Bonds and references herein to the registered owners of such Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners of such Bonds. Transfers To facilitate subsequent transfers all Bonds deposited by Direct Participants with DTC are registered in the name of DTC s partnership nominee Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of the Bonds with DTC and their registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Notices Conveyance of notices and other communications by DTC to Direct Participants by Direct Participants to Indirect Participants and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to DTC. If less than all of the Bonds are being redeemed DTC s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Voting Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC s Procedures. Under its usual procedures DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus -8-

15 Proxy assigns Cede & Co. s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of Principal and Interest So long as any Bond is registered in the name of DTC s nominee all payments of principal of premium if any and interest on such Bond will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC s practice is to credit Direct Participants accounts upon DTC s receipt of funds and corresponding detail information from the City or the Trustee on the payable date in accordance with their respective holdings shown on DTC s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices as is the case with securities held for the accounts of customers in bearer form or registered in street name and will be the responsibility of such Participant and not of DTC nor its nominee the Trustee or the City subject to any statutory and regulatory requirements as may be in effect from time to time. Payment of principal of premium if any and interest on the Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Trustee disbursement of such payments to Direct Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of Direct and Indirect Participants. Discontinuation of Book-Entry Only System DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Trustee. Under such circumstances in the event that a successor depository is not obtained bond certificates are required to be printed and delivered as described in the Indenture. The use of the system of book-entry transfers through DTC (or a successor securities depository) may be discontinued as described in the Indenture. In that event bond certificates will be printed and delivered as described in the Indenture. None of the Underwriter the Trustee nor the City will have any responsibility or obligations to any Direct Participants or Indirect Participants or the persons for whom they act with respect to (i) the accuracy of any records maintained by DTC or any such Direct Participant or Indirect Participant; (ii) the payment by any Participant of any amount due to any Beneficial Owner in respect of the principal of premium if any or interest on the Bonds; (iii) the delivery by any such Direct Participant or Indirect Participant of any notice to any Beneficial Owner that is required or permitted under the terms of the Indenture to be given to owners of the Bonds; (iv) the selection of the Beneficial Owners to receive payment in the event of any partial redemption of the Bonds; or (v) any consent given or other action taken by DTC as Bondholder. The information above concerning DTC and DTC s book-entry system has been obtained from sources that the City believes to be reliable but is not guaranteed as to accuracy or completeness by and is not to be construed as a representation by the City the Trustee or the Underwriter. The City the Trustee and the Underwriter make no assurances that DTC Direct Participants Indirect Participants or other nominees of the Beneficial Owners will act in accordance with the procedures described above or in a timely manner. NOTICE TO INVESTORS Because of the following restrictions purchasers are advised to consult legal counsel prior to making any offer resale pledge or other transfer of the Series 2011 Bonds offered hereby. The Series 2011 Bonds maturing on 2023 and 2026 are designated by the City to be the first term bonds that may be sold by the Underwriter to qualified institutional buyers (as defined in Rule 144A promulgated under the Securities Act of 1933 as amended) or to accredited investors (as defined in Rule 501(a) of Regulation D promulgated under -9-

16 the Securities Act of 1933 as amended) in accordance with the Redevelopment Agreement. The Series 2011 Bonds maturing on 2030 may only be purchased by and sold to qualified institutional buyers in accordance with the Redevelopment Agreement Notice to Purchasers of the Series 2011 Bonds Maturing in 2023 and 2026 Each purchaser of the Series 2011 Bonds maturing on October or October offered hereby will be deemed to have represented and agreed as follows (terms used herein that are defined in Regulation D ( Reg D ) under the Securities Act are used herein as defined therein): The purchaser (i) is an accredited investor or a qualified institutional buyer and (ii) is acquiring such Series 2011 Bonds maturing on October or October for its own account or for the account of an accredited investor or a qualified institutional buyer as the case may be and not with a view to the further distribution thereof. The purchaser agrees to offer sell or transfer the Series 2011 Bonds maturing on October or October only to persons whom the purchaser reasonably believes to be accredited investors as defined in Reg. D or qualified institutional buyers as defined in Rule 144A. Notice to Purchasers of the Series 2011 Bonds Maturing in 2030 Each purchaser of the Series 2011 Bonds maturing on April offered hereby will be deemed to have represented and agreed as follows (terms used herein that are defined in Rule 144A ( Rule 144A ) under the Securities Act are used herein as defined therein): The purchaser (i) is a qualified institutional buyer and (ii) is acquiring such Series 2011 Bonds maturing on April for its own account or for the account of a qualified institutional buyer as the case may be and not with a view to the further distribution thereof. The purchaser agrees to offer sell or transfer the Series 2011 Bonds maturing on April only to persons whom the purchaser reasonably believes to be a qualified institutional buyer as defined in Rule 144A. Notice Regarding Restriction on Use of Retirement Plan Assets to Purchasers of Series 2011 Bonds Maturing in or 2030 In addition by its acceptance of a Series 2011 Bond maturing on October October or April each purchaser and subsequent transferee of a Series 2011 Bond maturing on October October or April will be deemed to have represented and warranted that either (i) no portion of the assets used by such purchaser or transferee to acquire and hold the Series 2011 Bonds maturing on October October or April constitutes assets of any employee benefit plan subject to Title I of the Employee Retirement Income Security Act of 1974 as amended ( ERISA ) or Section 4975 of the Internal Revenue Code of 1986 as amended (the Code ) or the applicable provisions of any federal state local or non-united States laws which are similar to the provisions of Title I of ERISA or Section 4975 of the Code ( Similar Laws ) or (ii) the purchase and holding of such Series 2011 Bond maturing on October October or April by such purchaser or transferee will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or violation of any applicable Similar Laws. -10-

17 SOURCES OF PAYMENT AND SECURITY FOR THE BONDS Limited Obligations; Sources of Payment The Bonds and the interest thereon are limited obligations of the City payable solely from Pledged Revenues and other moneys pledged thereto and held by the Trustee. Under the Indenture the City will pledge and assign moneys in the Revenue Fund the Debt Service Fund and the Debt Service Reserve Fund to the Trustee for the benefit of the Owners as security for the payment of the Bonds and the interest thereon. Pledged Revenues means all Net Revenues and all moneys held in the Project Fund the Revenue Fund the Debt Service Fund and the Debt Service Reserve Fund under the Indenture together with investment earnings thereon. Net Revenues means all moneys on deposit (including investment earnings thereon) in (a) the PILOTS Account of the Special Allocation Fund and (b) subject to annual appropriation the Economic Activity Tax Account of the Special Allocation Fund; provided however that upon delivery to the Trustee of a certificate from the City stating that the City has issued any Series B Bonds Net Revenues will only include Payments in Lieu of Taxes and Economic Activity Tax Revenues consisting of Area A Revenues until all Series B Bonds have been paid in accordance with their terms. Net Revenues do not include (i) any amount paid under protest until the protest is withdrawn or resolved against the taxpayer (ii) any sum received by the City which is the subject of a suit or other claim communicated to the City which suit or claim challenges the collection of such sum and (iii) any sum paid to the School District as a grant pursuant to the Redevelopment Agreement. See SOURCES OF PAYMENT AND SECURITY FOR THE BONDS Revenues below for the definitions of Area A Revenues and Area B Revenues. Owners should expect that the Bonds will be paid only from Payments in Lieu of Taxes and Economic Activity Tax Revenues consisting of Area A Revenues. The Projections reflect only Area A Revenues. See SOURCES OF PAYMENT AND SECURITY FOR THE BONDS Revenues below. The Bonds are not secured by a mortgage on any property in the Redevelopment Area. However the Payments in Lieu of Taxes that are due and owing shall constitute a lien against the real estate in the Redevelopment Area from which they are derived which lien may be foreclosed upon in the event of non payment. See the caption TAX INCREMENT FINANCING IN MISSOURI Assessments and Collections of Ad Valorem Taxes herein. THE BONDS SHALL NOT CONSTITUTE A DEBT OR LIABILITY OF THE CITY THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF AND SHALL NOT CONSTITUTE AN INDEBTEDNESS WITHIN THE MEANING OF ANY CONSTITUTIONAL CHARTER OR STATUTORY DEBT LIMITATION OR RESTRICTION. THE ISSUANCE OF THE BONDS SHALL NOT OBLIGATE THE CITY TO LEVY ANY FORM OF TAXATION THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT. Revenues Moneys in the Special Allocation Fund shall be paid by the City on the tenth day of each month (or the next Business Day thereafter if the tenth day is not a Business Day) to the Trustee with (A) all Net Revenues as of the last day of the preceding month consisting of Payments in Lieu of Taxes to be deposited into the PILOTS Account of the Revenue Fund and (B) subject to annual appropriation by the City all Net Revenues as of the last day of the preceding month consisting of Economic Activity Tax Revenues to be deposited into the EATS Account of the Revenue Fund; provided however that upon delivery to the Trustee of a certificate from the City stating that the City has issued any Series B Bonds and continuing until all Series B Bonds have been paid in accordance with their terms Area B Revenues shall be transferred to the Series B -11-

18 Trustee within two Business Days from receipt by the Trustee. The Trustee shall notify the City and the Original Purchaser if the Trustee has not received such payments on or before the 12th calendar day of each month (or the next Business Day thereafter if the 12th day is not a Business Day). Payments in Lieu of Taxes means those payments in lieu of taxes (as defined in Sections (10) and of the TIF Act) if any attributable to the increase in the current equalized assessed valuation of all taxable lots blocks tracts and parcels of real property in the Redevelopment Area over and above the certified total initial equalized assessed valuation of the real property in the Redevelopment Area as provided for by Section of the TIF Act. Economic Activity Tax Revenues means 50% of the total additional revenue from taxes imposed by the City or other taxing districts (as that term is defined in Section of the TIF Act) which are generated by economic activities within the Redevelopment Area over the amount of such taxes generated by economic activities within the Redevelopment Area in the calendar year ending December but excluding therefrom any taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels taxes levied pursuant to Section RSMo. licenses fees or special assessments other than payments in lieu of taxes and penalties and interest thereon personal property taxes and taxes levied for the purpose of public transportation pursuant to Section RSMo. The Redevelopment Area contains two sub areas: (a) Redevelopment Area A comprised of that portion of the Shopping Center which has been constructed (see SUMMARY OF THE LEASES; OCCUPANTS herein) as well as other retailers and entities outside the Shopping Center but within the Redevelopment Area including Wendy s and two other restaurants a convenience store an automobile dealership and a church and containing approximately 51 acres; and (b) Redevelopment Area B comprised of that portion of the Shopping Center which has not yet been constructed (anticipated to contain approximately square feet of leasable space) as well as several outlots and containing approximately acres. Pursuant to the Indenture upon delivery to the City the Trustee and the Original Purchaser of a written certificate of a surveyor licensed in the State to the effect that a new tax parcel or parcels have been created within an identified tax parcel in Redevelopment Area A which new tax parcel or parcels are within the metes and bounds described on an exhibit to the Indenture such new tax parcel or parcels shall be deemed to be within Redevelopment Area B. The metes and bounds so described constitute approximately 4.44 acres. The City anticipates that upon completion of construction of Redevelopment Area B and the occupancy thereof by retailers either Additional Bonds will be issued (see SOURCES OF PAYMENT AND SECURITY FOR THE BONDS Additional Bonds herein) or Series B Bonds will be issued. If Series B Bonds are issued such Series B Bonds would be paid from Area B Revenues. Until such time if ever as Series B Bonds are issued Area B Revenues will be available for the payment of the Bonds. Upon the issuance of any Series B Bonds only Area A Revenues thereafter received will be available for the repayment of the Bonds until no Series B Bonds are Outstanding. Owners should expect that the Bonds will be paid only from Area A Revenues. The Projections reflect only Area A Revenues. The following shows the expected boundaries of Area A and Area B within the Redevelopment Area. [Remainder of Page Intentionally Left Blank.] -12-

19 Area A Revenues means the sum of (a) the Payments in Lieu of Taxes derived from Redevelopment Area A plus in each calendar year up to the first of Net Revenues consisting of Payments in Lieu of Taxes derived from Redevelopment Area B and (b) Economic Activity Tax Revenues derived from Redevelopment Area A; provided however that with respect to any buildings/businesses that may be constructed across the boundary lines between Redevelopment Area A and Redevelopment Area B Economic Activity Tax Revenues for such property shall be allocated between Area A Revenues and Area B Revenues based on the percentage or fraction of such buildings/businesses located in Redevelopment Area A and Redevelopment Area B determined by the City based on a survey of the properties (or if no survey has been provided by the Developer to the City all revenues from such buildings/businesses shall be allocated as Area A Revenues). Area B Revenues means the sum of (a) the Payments in Lieu of Taxes in each calendar year in excess of derived from Redevelopment Area B and (b) Economic Activity Tax Revenues derived from Redevelopment Area B; provided however that with respect to any buildings/businesses that may be constructed across the boundary lines between Redevelopment Area A and Redevelopment Area B Economic Activity Tax Revenues for such property shall be allocated between Area A Revenues and Area B Revenues based on the percentage or fraction of such buildings/businesses located in Redevelopment Area A and Redevelopment Area B determined by the City based on a survey of the properties (or if no survey has been provided by the Developer to the City all revenues from such buildings/businesses shall be allocated as Area A Revenues). Pursuant to the State law taxpayers who promptly pay their sales taxes are entitled to retain 2% of the amount of taxes owed. Because it can not be determined whether the taxpayers in the Redevelopment Area will promptly pay their sales taxes the Projections assume that all taxpayers will promptly pay their sales taxes -13-

20 and will retain 2% of the amount of the taxes owed. See PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS herein. Indenture Funds and Accounts Revenue Fund. Moneys in the Special Allocation Fund shall be paid by the City on the tenth day of each month (or the next Business Day thereafter if the tenth day is not a Business Day) to the Trustee with (A) all Net Revenues as of the last day of the preceding month consisting of Payments in Lieu of Taxes to be deposited into the PILOTS Account of the Revenue Fund and (B) subject to annual appropriation by the City all Net Revenues as of the last day of the preceding month consisting of Economic Activity Tax Revenues to be deposited into the EATS Account of the Revenue Fund; provided however that upon delivery to the Trustee of a certificate from the City stating that the City has issued any Series B Bonds and continuing until all Series B Bonds have been paid in accordance with their terms Area B Revenues shall be transferred to the Series B Trustee within two Business Days from receipt by the Trustee. The Trustee shall notify the City and the Original Purchaser if the Trustee has not received such payments on or before the 12th calendar day of each month (or the next Business Day thereafter if the 12th day is not a Business Day). All moneys in the Revenue Fund including all Area B Revenues when no Series B Bonds have been issued and are Outstanding on the 40th day prior to each Payment Date (or at any time in the event of rebate payable to the United States of America) shall be applied by the Trustee to the extent necessary for the purposes and in the amounts as follows drawing first on the EATS Account in the Revenue Fund and second on the PILOTS Account in the Revenue Fund: First for transfer to the Rebate Fund when necessary an amount sufficient to pay rebate if any to the United States of America owed under Section 148 of the Code as directed in writing by the City in accordance with the Arbitrage Instructions; Second for payment to the Trustee or any Paying Agent an amount sufficient for payment of any fees and expenses which are due and owing to the Trustee or any Paying Agent (except as otherwise provided herein not to exceed 4250 per Fiscal Year) upon delivery to the City of an invoice for such amounts and for payment to the City of an amount sufficient for payment of any fees and expenses which are due and owing to the City pursuant to the Indenture for the City s costs of collection upon delivery to the Trustee of an invoice for such amounts; Third for transfer to the Bond Payment Account in the Debt Service Fund an amount sufficient to pay the interest on the Bonds on the next two succeeding Payment Dates and to pay the principal of any Bonds when due (at maturity or upon scheduled mandatory redemption) on the next two succeeding Payment Dates; Fourth for transfer to the Redemption Account in the Debt Service Fund for application to the special mandatory redemption of the Bonds an amount sufficient to redeem the Series 2011 Bonds in accordance with 100% of the payment schedule (taking into account both the projected redemption on such Payment Date and the cumulative redemptions to and including such Payment Date) shown on an exhibit to the Indenture which conforms to Case I under the caption PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS (see THE BONDS Redemption Provisions Special Mandatory Redemption ); Fifth for transfer to the Debt Service Reserve Fund such amount as may be required to restore any deficiency in the Debt Service Reserve Fund if the amount on deposit in the Debt Service Reserve Fund is less than the Debt Service Reserve Requirement; -14-

21 Sixth for payment to the School District an amount up to in the applicable calendar year as a partial payment of the educational grant payment provided in the Redevelopment Agreement; Seventh for payment to the School District (for the educational grant payment provided in the Redevelopment Agreement) and for transfer to the Redemption Account in the Debt Service Fund equal amounts until (i) the School District has been paid the amounts set forth in an exhibit to the Indenture in the applicable calendar year or (ii) there is an amount sufficient in the Redemption Account of the Debt Service Fund to pay the principal on the Series 2011 Bonds in accordance with 110% of the payment schedule of principal (on a cumulative basis) shown on an exhibit to the Indenture which conforms to Case I under the caption PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS and upon satisfaction of the first of the funding requirements of clauses (i) or (ii) 100% to the School District or the Redemption Account of the Debt Service Fund as applicable to fund the amounts required by clause (i) or clause (ii) as applicable; Eighth for transfer to the Redemption Account in the Debt Service Fund an amount sufficient to pay the principal on Additional Bonds in accordance with 110% of the payment schedule of principal set forth in the Supplemental Indenture authorizing the issuance of such Additional Bonds which payment schedule shall conform (on a cumulative basis) to the Revised Case I requirements of the Indenture authorizing the issuance of Additional Bonds with respect to each issuance of Additional Bonds (see SECURITY FOR THE BONDS Additional Bonds herein); Ninth for payment to the Developer of unreimbursed Reimbursable Project Costs upon receipt of a written request of the Authorized City Representative and the Authorized Developer Representative and containing the statements representations and certifications set forth in the form of such request attached as an exhibit to the Indenture and otherwise substantially in such form to pay or reimburse the Developer for payment of the costs of the Project as described in an exhibit to the Indenture; Tenth for transfer to the Redemption Account in the Debt Service Fund all remaining funds to redeem Series 2011 Bonds pursuant to the special mandatory redemption provisions contained in the Indenture in Authorized Denominations which shall be applied to the payment of the principal of and accrued interest on all Series 2011 Bonds which are subject to redemption on the next succeeding Payment Date (see THE BONDS Redemption Provisions Special Mandatory Redemption ); and Eleventh for transfer to the Redemption Account in the Debt Service Fund all remaining funds to redeem Additional Bonds pursuant to the special mandatory redemption provisions contained in the Supplemental Indenture authorizing such Additional Bonds in Authorized Denominations which shall be applied to the payment of the principal of and accrued interest on all Additional Bonds which are subject to redemption on the next succeeding Payment Date. Debt Service Fund. All amounts paid and credited to the Debt Service Fund shall be expended solely for the payment of the principal of redemption premium if any and interest on the Bonds as the same mature and become due or upon the redemption thereof. Debt Service Reserve Fund. Amounts in the Debt Service Reserve Fund are to be used to pay principal of and interest on the Bonds to the extent of any deficiency in the Debt Service Fund and to retire the last Outstanding Bonds. Project Fund. So long as no Event of Default has occurred and is continuing moneys in the TIF Account of the Project Fund shall be disbursed by the Trustee from time to time upon receipt of a written request of the Authorized City Representative and the Authorized Developer Representative and containing the -15-

22 statements representations and certifications set forth in the form of such request attached as an exhibit to the Indenture and otherwise substantially in such form to pay or reimburse the City or the Developer for payment of the costs of the Project as described in an exhibit to the Indenture. Any moneys remaining on deposit in the Project Fund when the portion of the Project financed with the proceeds of the Series 2011 Bonds is completed and the City has reimbursed Developer for its Reimbursable Project Costs as evidenced by a certificate delivered by the Authorized City Representative to the Trustee shall immediately be transferred by the Trustee to the Redemption Account in the Debt Service Fund. See THE BONDS Redemption Provisions Special Mandatory Redemption herein. Moneys in the Cost of Issuance Account of the Project Fund shall be disbursed from time to time by the Trustee upon the written request of the City for the sole purpose of paying costs of issuance of the Bonds. Any moneys remaining in the Cost of Issuance Account of the Project Fund on August shall be deposited without further authorization into the TIF Account of the Project Fund. Additional Bonds Additional Bonds may be issued under the Indenture upon compliance with the conditions set forth in the Indenture for any purpose authorized under the TIF Act and related to the Project. Before any Additional Bonds are issued under the provisions of the Indenture the City shall adopt an ordinance (1) authorizing the issuance of such Additional Bonds fixing the principal amount thereof and describing the purpose or purposes for which such Additional Bonds are being issued (2) authorizing the City to enter into a Supplemental Indenture for the purpose of issuing such Additional Bonds and establishing the terms and provisions of such series of Additional Bonds reserve funds or other credit enhancement which does not secure other Bonds Outstanding and the form of such series of Additional Bonds and (3) providing for such other matters as are appropriate because of the issuance of the Additional Bonds which matters in the judgment of the City do not materially adversely affect the security for the owners of the Bonds previously issued. Such Additional Bonds shall have the same general title as the Series 2011 Bonds except for an identifying series letter or date and shall be dated shall mature on such dates shall be numbered shall bear interest at such rates not exceeding the maximum rate then permitted by law payable at such times and shall be redeemable at such times and prices (subject to the provisions of the Indenture) all as provided by the Supplemental Indenture authorizing the issuance of such Additional Bonds. Except as to any difference in the date the maturities the rates of interest or the provisions for redemption such Additional Bonds may be on a parity with and shall be entitled to the same benefit and security of the Indenture as the Series 2011 Bonds and any other Additional Bonds issued on a parity with the Series 2011 Bonds upon compliance with the terms of the Indenture. Such Additional Bonds shall be executed in the manner set forth in the Indenture and shall be deposited with the Trustee for authentication but prior to or simultaneously with the authentication and delivery of such Additional Bonds by the Trustee and as a condition precedent thereto there shall be filed with the Trustee the following: (a) A copy certified by the City Clerk of the ordinance adopted by the City authorizing the issuance of such Additional Bonds and the execution of the Supplemental Indenture and supplements to any other documents as may be necessary. (b) An original executed counterpart of the Supplemental Indenture executed by the City and the Trustee authorizing the issuance of the Additional Bonds specifying among other things the terms thereof and providing for the disposition of the proceeds of such bonds. (c) A certificate of the City (i) stating that no event of default under the Indenture has occurred and is continuing and that no event has occurred and is continuing which with the lapse of -16-

23 time or giving of notice or both would constitute such an event of default and (ii) stating the purpose or purposes for which such Additional Bonds are being issued. (d) A request and authorization to the Trustee executed by the City to authenticate the Additional Bonds and deliver said Additional Bonds to or upon the order of the purchasers therein identified upon payment to the Trustee for the account of the City of the purchase price thereof. The Trustee shall be entitled to rely conclusively upon such request and authorization as to the names of the purchasers and the amounts of such purchase price. (e) An Opinion of Bond Counsel to the effect that all requirements for the issuance of such Additional Bonds have been met that such Additional Bonds constitute valid and legally binding obligations of the City and the issuance of such Additional Bonds will not result in the interest on any Bonds then Outstanding and exempt from taxation for federal income tax purposes becoming subject to federal income taxes then in effect. (f) Such other certificates statements opinions receipts and documents required by any of the Financing Documents or as the City or the Trustee shall reasonably require for the delivery of the Additional Bonds. When the documents specified above have been filed with the Trustee and when such Additional Bonds have been executed and authenticated as required by the Indenture the Trustee shall deliver such Additional Bonds to or upon the order of the purchasers thereof but only upon payment to the Trustee of the purchase price of such Additional Bonds. The proceeds of the sale of such Additional Bonds including accrued interest and premium thereon if any shall be deposited and applied as provided in the Indenture and in the Supplemental Indenture authorizing the issuance of such Additional Bonds. Additional Bonds may be issued on a parity except with respect to special mandatory redemption as provided in the Indenture (see SECURITY FOR THE BONDS Indenture Funds and Accounts ) with the Series 2011 Bonds or any other Additional Bonds issued on a parity with the Series 2011 Bonds only upon delivery to the Trustee of (i) a certificate of the City demonstrating that the cumulative redemptions of any Additional Bonds are not less than the required cumulative redemptions for such Additional Bonds if any as set forth in the Supplemental Indenture authorizing the issuance of such Additional Bonds; (ii) a certificate of the Original Purchaser or the original purchaser of such Additional Bonds based on revenue projections (the Revised Projected Net Revenues ) approved by the City and prepared by a planning consultant acceptable to the City the Developer and the Original Purchaser or the original purchaser of such Additional Bonds that includes (A) a calculation showing that the Revised Projected Net Revenues for each year ending October 1 that the Series 2011 Bonds Additional Bonds Outstanding and the Additional Bonds to be issued will be Outstanding (excluding the last year of the Series 2011 Bonds Additional Bonds Outstanding and such Additional Bonds to be issued) will not be less than 135% of the scheduled principal of (whether paid at maturity or scheduled mandatory sinking fund redemptions) and scheduled interest on the Series 2011 Bonds Additional Bonds Outstanding and such Additional Bonds to be issued; (B) a schedule of the expected periodic scheduled and projected special mandatory redemptions of remaining Series 2011 Bonds Additional Bonds Outstanding and such Additional Bonds to be issued pursuant to the redemption provisions based on the Revised Projected Net Revenues (being hereinafter referred to as Revised Case I ) and (C) a calculation showing that if not more than 74% of the Revised Projected Net Revenues are received (being hereinafter referred to as Revised Case II ) and assuming application of moneys (excluding any interest income thereon) in the Debt Service Reserve Fund (with moneys in each subaccount to be applied to the applicable series of the Bonds) to the final payment of the Series 2011 Bonds Additional Bonds Outstanding and such Additional Bonds the Series 2011 Bonds Additional Bonds Outstanding and such Additional Bonds will be repaid in accordance with their terms; and (iii) evidence satisfactory to the Trustee the principal and interest payment dates including the final maturity date on such Additional Bonds are the same as for the Series 2011 Bonds. -17-

24 When making such calculations if no Series B Bonds have been issued projected Net Revenues will be calculated to include only Net Revenues consisting of Area A Revenues unless the City and the Developer have provided a certificate to the Trustee that no Series B Bonds will ever be issued. Except as described above the City will not otherwise issue any obligations on a parity with the Series 2011 Bonds but the City may issue other obligations specifically subordinate and junior to the Series 2011 Bonds so that if at any time the City shall be in default in paying either principal of or interest on the Series 2011 Bonds or any Additional Bonds issued on a parity with the Series 2011 Bonds the City shall make no payments of either principal of or interest on said junior Bonds until such default or defaults be cured. ESTIMATED SOURCES AND USES OF FUNDS Following is a summary of the anticipated sources and uses of funds in connection with the issuance of the Bonds: Sources of Funds: Net proceeds of the Bonds Amounts on deposit in the Special Allocation Fund Total sources of funds Uses of Funds: Deposit to the TIF Account of the Project Fund Deposit to Debt Service Reserve Fund Deposit to the Debt Service Fund Underwriter s Discount Other Costs of Issuance Total uses of funds Overview TAX INCREMENT FINANCING IN MISSOURI Tax increment financing is a procedure whereby cities and counties encourage the redevelopment of designated areas. The theory of tax increment financing is that by encouraging redevelopment projects the value of real property in a redevelopment area should increase. When tax increment financing is adopted for a redevelopment area the assessed value of real property in the redevelopment area is frozen for tax purposes at the current base level prior to the construction of improvements. The owners of the property continue to pay property taxes at the base level. As the property is improved the assessed value of real property in the redevelopment area should increase above the base level. By applying the tax rate of all taxing districts having taxing power within the redevelopment area to the increase in assessed valuation of the improved property over the base level a tax increment is produced. The tax increments referred to as payments in lieu of taxes are paid by the owners of property in the same manner as regular property taxes. The Payments in Lieu of Taxes are transferred by the collecting agency to the treasurer of the city or county and deposited in a special allocation fund. All or a portion of the moneys in the fund are used to pay directly for redevelopment project costs or to retire bonds or other obligations issued to pay such costs. -18-

25 The Act The Act was enacted in 1982 and was amended in subsequent years. The constitutional validity of the Act (prior to the amendments) was upheld by the Missouri Supreme Court in Tax Increment Financing Commission of Kansas City Missouri v. J.E. Dunn Construction Co. Inc. 781 S.W.2d 70 (Mo. 1989) (en banc). The Act authorizes cities and counties to provide long term financing for redevelopment projects in blighted and conservation areas (as defined in the Act) through the issuance of bonds and other obligations. Such obligations are payable solely from payments in lieu of taxes within the redevelopment area and from 50% of the increase in certain other tax revenues generated by economic activities within the redevelopment area (including sales taxes but excluding personal property taxes hotel/motel taxes licenses fees and special assessments and certain taxes imposed by St. Louis County Missouri for purposes of public transportation). Such other taxes are referred to herein as Economic Activity Tax Revenues. The validity of certain portions of the Act relating to the capture of Economic Activity Tax Revenues was upheld by the Missouri Supreme Court in City of Jefferson v. QuikTrip Corporation 912 S.W.2d 487 (Mo. 1995) (en banc). Although Payments in Lieu of Taxes may be irrevocably pledged to the repayment of bonds Economic Activity Tax Revenues are subject to annual appropriation by the governing body of the city or county and there is no obligation on the part of the governing body to appropriate Economic Activity Tax Revenues in any year. See the captions OWNERS RISKS Risk of Non-Appropriation OWNERS RISKS Factors Affecting Economic Activity Tax Revenues and LITIGATION herein. Assessments and Collections of Ad Valorem Taxes The City is located in Jackson County Missouri (the County ). On or before September 1 in each year each political subdivision located within the County which imposes ad valorem taxes (the Taxing Districts ) estimates the amount of taxes that will be required during the next succeeding fiscal year to pay interest falling due on general obligation bonds issued and the principal of bonds maturing in such year and the costs of operation and maintenance plus such amounts as shall be required to cover emergencies and anticipated tax delinquencies. The Taxing Districts certify the amount of such taxes which shall be levied assessed and collected on all taxable tangible property in the County to the County Assessor by September 1. All taxes levied must be based upon the assessed valuation of land and other taxable tangible property in the County as shall be determined by the records of the County Assessor and must be collected and remitted to the Taxing Districts. All the laws rights and remedies provided by the laws of the State for the collection of State county city school and other ad valorem taxes are applicable to the collection of taxes authorized to be collected in the Redevelopment Area. The Missouri Constitution requires uniformity in taxation of real property by directing such property to be subclassed as agricultural residential or commercial and permitting different assessment ratios for each subclass. Residential property is currently assessed at 19% of true value in money commercial property is assessed at 32% of true value in money and agricultural property is assessed at 12% of true value in money. The phrase true value in money has been held to mean fair market value except with respect to agricultural property. Real property within the County is assessed by the County Assessor. The County Assessor is responsible for preparing the tax roll each year and for submitting the tax roll to the Board of Equalization. The Board of Equalization has the authority to question and determine the proper values of real property and then adjust and equalize individual properties appearing on the tax rolls. The County Collector collects taxes for all Taxing Districts within the County limits. The County Collector deducts a commission for his services. After such collections and deductions of commission taxes are distributed according to the Taxing District s pro rata share. -19-

26 Taxes are levied on all taxable property based on the equalized assessed value thereof determined as of January 1 in each year. Under Missouri law each property must be reassessed every two years (in odd numbered years). The County Collector prepares the tax bills and mails them to each taxpayer in September. Payment is due by December 31 after which they become delinquent and accrue a penalty of one percent per month. In the event of an increase in the assessed value of a property notice of such increase must be given to the owner of the affected property which notice is generally given in April. Valuation of Real Property. The County Assessor must determine the assessed value of a property based upon the State law requirement that property be valued at its true value in money. For agricultural land true value is based on its productive capability. As to residential and commercial property true value in money is the fair market value of the property on the valuation date. The fair market value is arrived at by using the three universally recognized approaches to value: cost approach the sales comparison approach and the income approach. The cost approach is typically applied when a property is newly constructed and is based on the principle of substitution. This principle states that no informed buyer will pay more for a property than the cost to reproduce or replace the property. Value is determined under the cost approach by adding the estimated land value to the replacement or reproduction cost reduced by estimated depreciation. Courts have held however that construction cost alone is not a proper basis for determining true value in money and that all factors which affect the use and utility of the property must be considered. The sales comparison approach determines value based upon recent sales prices of comparable properties. Comparable sales are adjusted for differences in properties by comparing such items as sales price per square foot and net operating income capitalization rates. The income approach estimates market value by discounting to present value a stream of estimated net operating income. First the property s gross potential income is estimated based on gross rents being generated at the property. A vacancy allowance is then deducted to arrive at effective gross income. Next allowable operating expenses are deducted to arrive at an estimate of the property s net operating income. Finally the net operating income is divided by an appropriate capitalization rate to arrive at the estimated present value of the income stream. Appeal of Assessment. State statutes set up various mechanisms for a property owner to appeal the assessment of a tax on its property. Typically there are four issues that can be raised in property tax appeals including overvaluation uniformity misclassification and exemption. Overvaluation appeals are the most common appeals presented by taxpayers. An overvaluation appeal requires the taxpayer to prove that the true value in money of the property is less than that determined by the assessor. Uniformity appeals are based on the assertion that other property in the same class and county as the subject property is assessed at a lower percentage of value than the subject property. A misclassification appeal is based on an assertion that assessing authorities have improperly subclassed a property. Exemption appeals are based on claims that the property in question is exempt from taxation. Overvaluation appeals for the most part must be made administratively first to the Board of Equalization and then to the State Tax Commission within prescribed time periods following notice of an increase in assessment. Appeals to the Board of Equalization must be filed with the County Assessor on or before the third Monday in June of each year. Appeals to the State Tax Commission must be filed by the later of August 15 and 30 days after the date of the final decision of the Board of Equalization. Where valuation is not an issue appeals must be taken directly to the State circuit court rather than the State Tax Commission. If an appeal is pending on December 31 the due date for the payment of taxes State statute provides a procedure for the payment of taxes under protest. If taxes are paid but not under protest the taxpayer cannot recover the amount paid unless mistakenly or erroneously paid. Application for a refund of mistakenly or erroneously paid taxes must be made within one year after the tax in dispute was paid. Typically only that portion of the taxes being disputed is identified as being paid under protest unless a claim of exemption is being asserted. The portion of -20-

27 the tax paid under protest is required to be held in an interest bearing account. Unless an appeal before the Board of Equalization or State Tax Commission is pending suit must be brought by the taxpayer to resolve the dispute within 90 days or the escrowed funds will be released to the Collector of Revenue and distributed to the Taxing Districts. Reassessment and Tax Rate Rollback. As previously stated a general reassessment of all property in the State is required to be conducted every two years. When as a result of such reassessment the assessed valuation within a Taxing District increases by more than an allowable percentage the Taxing District is required to roll back the rate of tax within the Taxing District so as to produce substantially the same amount of tax revenue as was produced in the previous year increased by an amount called a preceding valuation factor. A preceding valuation factor is a percentage increase or decrease based on the average annual percentage changes in total assessed valuation of the County over the previous three or five years whichever is greater adjusted to eliminate the effect of boundary changes changes from State to County assessed property general reassessment and State ordered changes. The Hancock Amendment. A Constitutional amendment limiting taxation and government spending was approved by Missouri voters on September and went into effect with the fiscal year. The amendment (Article X Section 22(a) of the State Constitution and popularly known as the Hancock Amendment) limits the rate of increase and the total amount of taxes that shall be imposed in any fiscal year and provides that the limit shall not be exceeded without voter approval. Provisions are included in the Hancock Amendment for rolling back tax rates to produce an amount of revenues equal to that of the previous year if the definition of the tax base is changed or if property is reassessed. The tax levy on the assessed valuation of new construction is exempt from this limitation in the initial year of new construction. Tax Delinquencies All real estate upon which taxes or Payments in Lieu of Taxes remain unpaid on the first day of January annually are delinquent and the County Collector is empowered to enforce the lien of the taxing jurisdictions thereon. Whenever the County Collector is unable to collect any taxes on the tax roll having diligently endeavored and used all lawful means to do so he is required to compile lists of delinquent tax bills collectible by him. All lands and lots on which taxes are delinquent and unpaid are subject to suit to collect delinquent tax bills or suit for foreclosure of the tax liens. Upon receiving a judgment the Sheriff must advertise the sale of the land fixing the date of sale within 30 days after the first publication of the notice. Delinquent taxes with penalty interest and costs may be paid to the County Collector at any time before the property is sold therefor. No action for recovery of delinquent taxes shall be valid unless initial proceedings therefor are commenced within five years after delinquency of such taxes. Economic Activity Tax Revenues The Economic Activity Tax Revenues that will be pledged to the payment of the Bonds subject to annual appropriation are 50% of the total additional revenue from taxes imposed by the City or other taxing districts (as that term is defined in Section of the Act) which are generated by economic activities within the Redevelopment Area over the amount of such taxes generated by economic activities within the Redevelopment Area in the calendar year ending December and by economic activity taxes generated by any Relocated Retail Establishment in the calendar year prior to its relocation to the Redevelopment Area but excluding therefrom any taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels licenses fees or special assessments (other than payments in lieu of taxes) personal property taxes and taxes levied for the purpose of public transportation pursuant to Section RSMo. Retail businesses are required to collect the sales tax from purchasers at the time of sale and with the exception of the sales tax imposed by the District pay said amounts to the Department of Revenue of the State with the filing of returns except for the sales tax on motor vehicles trailers boats and outboard motors which is due at the time application is made for title and registration. The sales volume of a retail business determines the -21-

28 frequency of payments made to the Department of Revenue of the State. In most cases the retail businesses in the City make monthly payments to the Department of Revenue of the State which are due on the tenth day of each calendar month for sales taxes collected in the preceding calendar month. Retail businesses located in the City submit applications to the City for a merchants license and an occupancy permit and before such license and permit are awarded verification of a tax identification number from the State is made by the City. In the event of a failure by a retail business to remit sales taxes interest and penalties the unpaid amount may become a lien in the nature of a judgment lien against the delinquent taxpayer. In the event of overpayment by any retail business as a result of error or duplication provision is made under State law for refunds. Pursuant to the State law taxpayers who promptly pay their sales taxes are entitled to retain 2% of the amount of taxes owed. Within 30 days of receipt of sales taxes by the Department of Revenue of the State the Director of the Department of Revenue remits to the State Treasurer for deposit in a special trust fund for the benefit of each political subdivision entitled to a sales tax distribution the amount of such sales tax receipts less 1% of such amount which constitutes a fee paid to the State for collecting and distributing the tax. The State Treasurer then distributes moneys on deposit in the special trust fund on behalf of each such political subdivision to such political subdivision on a monthly basis. OWNERS RISKS An investment in the Bonds is subject to a number of significant risk factors. The following is a discussion of certain risks that could affect payments to be made with respect to the Bonds. Such discussion is not and is not intended to be exhaustive and should be read in conjunction with all other parts of this Official Statement and should not be considered as a complete description of all risks that could affect such payments. Prospective purchasers of the Bonds should analyze carefully the information contained in this Official Statement including the Appendices hereto and additional information in the form of the complete documents summarized herein copies of which are available as described herein. Nature of the Obligations The Bonds are special limited obligations of the City and are payable solely from and secured by a pledge of Payments in Lieu of Taxes Economic Activity Tax Revenues (subject to annual appropriation thereof by the City) and from amounts in the Debt Service Reserve Fund. The realization of such revenues is dependent upon among other things the capabilities of the Developer and future changes in economic and other conditions that are unpredictable and cannot be determined at this time. Tax Increment Financing Litigation The Missouri Supreme Court upheld the constitutionality of the TIF Act (prior to certain amendments thereto) in See TAX INCREMENT FINANCING IN MISSOURI The TIF Act herein. Nevertheless litigation regarding the constitutionality and application of the TIF Act is currently pending in various Missouri circuit courts. Circuit courts in Missouri are trial courts and decisions in those courts are not binding on other Missouri courts. Circuit court decisions whether favorable or unfavorable with respect to the constitutionality and application of the TIF Act may be appealed to a Missouri Court of Appeals and ultimately the Missouri Supreme Court. If the plaintiffs are successful in one or more of the currently pending cases the court s decision may interpret the requirements of the TIF Act in a manner adverse to the establishment of tax increment financing in the Redevelopment Area. It is not possible to predict whether an adverse holding in any current or future litigation would prompt a challenge to the adoption of tax increment financing in the Redevelopment Area or how that decision would be applied by a court with respect to the Redevelopment Area. If current or future litigation challenging all or any part of the TIF Act were to be applied to the adoption of tax increment financing in the Redevelopment Area the Pledged Revenues may not -22-

29 be available to pay principal of and interest on the Bonds and the enforceability of the Indenture could be adversely affected. The City cannot predict or guarantee the outcome of any currently pending or future litigation challenging the constitutionality or the application of the TIF Act or the application by a court of a potential holding in any case to other tax increment projects. Risk of Non-Appropriation The application of Economic Activity Tax Revenues in the Special Allocation Fund is subject to annual appropriation by the City. Although the City has covenanted that the officer of the City at any time charged with the responsibility of formulating budget proposals will include in the annual budget proposal submitted to the City Council of the City a request for an appropriation of the Net Proceeds on deposit in the EATS Account of the Special Allocation Fund there can be no assurance that such appropriation will be made by the City Council and the City Council is not legally obligated to do so. Financial Feasibility of the Shopping Center The financial feasibility of the Shopping Center depends in large part upon the ability of the Developer to maintain substantial occupancy throughout the term of the Bonds. If the Developer fails to maintain substantial occupancy in the Shopping Center there may be insufficient Payments in Lieu of Taxes and Economic Activity Tax Revenues to pay the Bonds. The Projections include assumptions relating to the future occupancy of the Shopping Center and certain other significant assumptions. Some assumed events and circumstances inevitably will not materialize and unanticipated events and circumstances will occur subsequent to the date hereof. Therefore the actual results achieved during the forecast period may vary from the forecast and the variations may be material. No assurance can be given that environmental conditions do not now or will not in the future exist at the Shopping Center which could become the subject of enforcement actions by governmental agencies. Additionally there can be no assurance that future environmental conditions if any would not adversely impact the willingness of the public to frequent the Shopping Center. The amount of Economic Activity Tax Revenues is dependent upon the purchase of goods at the Shopping Center. Reliance on the Developer Tenants and Subsequent Property Owners The development of the Shopping Center has been undertaken by the Developer and those parties contracting with the Developer. The Developer is under no obligation to continue to own its leasehold interest in the Shopping Center for the term of the Bonds. If the Developer sells all or any part of its interest in the Shopping Center the payment of debt service on the Bonds will be dependent in part on such subsequent owners of the Shopping Center to provide the payment of Payments in Lieu of Taxes for deposit into the Special Allocation Fund. The majority of the real property of the Shopping Center is currently owned by CBL Lee s Summit East LLC a Missouri limited liability company. See THE REDEVELOPMENT AGREEMENT Ownership of the Shopping Center herein. Pursuant to the Ground Lease between CBL Lee s Summit East LLC and the Developer the Developer has the obligation to pay any property taxes and Payments in Lieu of Taxes imposed upon such property. Certain parcels of property within the Shopping Center have been sold to third parties. In addition most but not all of the current leases impose the obligation to pay a pro rata share of the property taxes and Payments in Lieu of Taxes upon the tenants. Thus in order to receive timely payment of principal and interest on the Series 2011 Bonds Bondowners must rely solely on the financial ability of the Developer other property owners within the Redevelopment Area and the tenants to pay the Payments in Lieu of Taxes. No representation is made herein as to such entities financial ability to make the payments that may be required of them by the Payments in Lieu of Taxes. The Shopping Center is currently managed by RED Development LLC a Missouri limited liability company as assignee of RED Asset Management Inc. a Missouri corporation (the Manager ) entities related to -23-

30 the Developer. The Manager is under no obligation to continue to manage the Shopping Center. See the caption THE REDEVELOPMENT PROJECT The Manager. Bondowners will be dependent on current and future managers of the Shopping Center to maintain occupancy in order to assure that (i) assessed valuation is maintained and the Payments in Lieu of Taxes are thereby generated and (ii) Economic Activity Tax Revenues will be generated. Even if the Shopping Center is fully occupied the Owners will be dependent upon the Developer or any subsequent owner(s) of the Shopping Center to pay the Payments in Lieu of Taxes generated by the Redevelopment Project. The default by any owner of the Shopping Center within the Redevelopment Area in the payment of such Payments in Lieu of Taxes would adversely affect the revenues available to pay the Bonds. Most of the leases for the Shopping Center provide that each tenant is responsible for its pro rata share of any real estate taxes (including Payments in Lieu of Taxes) and certain other common area expenses. If any tenant defaults in paying its pro rata share of such taxes or other common area expenses the Developer or any subsequent owner(s) of the Shopping Center will be responsible for such payments although the Developer would have the right to declare a default under the tenant s lease if the tenant failed to pay the same. It is contemplated that some of the leases will require the tenants to continuously operate a business at the leased premises but some leases may not contain this requirement. Thus a tenant may cease operations but continue to pay rent to the property owner. Under such circumstances no Economic Activity Tax Revenues would be generated by such tenant. Two retailers have already closed their operations at the Shopping Center. Other tenants are not required to operate their businesses until their space is completed and ready for occupancy. Tenant space not completed by specified dates may permit certain tenants to terminate their leases. There is no obligation on the part of the Developer to lease all of the space at the Shopping Center to tenants which generate Economic Activity Tax Revenues. See the caption SUMMARY OF LEASES herein. The Developer was delinquent in the payment of real property taxes for the 2010 tax year. Total real property taxes payable by the Developer equaled The Developer failed to pay such property taxes in a timely manner. On February the Developer paid such real property taxes together with interest and penalties thereon in the amount of According to the Developer the delinquent payment was due to a combination of an inadvertent delay in receipt of the tax bill from the real property owner a more in depth verification of the parcels and taxes attributed to each parcel due to replatting and sales transactions in 2009/2010 and timing of tenant openings. In 2008 an entity related to RED Development Inc. that was involved in the development of a shopping center in Blue Springs Missouri was delinquent in the payment of almost all of the real property taxes for the 2008 tax year relating to such shopping center. In February 2009 such developer paid the remaining real property taxes together with interest and penalties thereon. According to such developer the delinquent payment was due to internal employee changes and turnover. No Mortgage of the Redevelopment Project Payment of the principal of and interest on the Bonds is not secured by any deed of trust mortgage or other lien on the Redevelopment Project or any portion thereof. The Bonds are payable solely from the Payments in Lieu of Taxes deposited into the Special Allocation Fund moneys in the Debt Service Fund and the Debt Service Reserve Fund and subject to annual appropriation by the City the Economic Activity Tax Revenues. However the Act provides that Payments in Lieu of Taxes that are due and owing shall constitute a lien against the real estate in the Redevelopment Area from which they are derived. Upon a default in the payment of any Payments in Lieu of Taxes the lien for unpaid Payments in Lieu of Taxes may be enforced as provided in the Act. -24-

31 Risk of Failure to Maintain Levels of Assessed Valuations There can be no assurance that the assessed value of the Shopping Center will equal or exceed the forecasted assessed value. Even if the assessed value is initially determined as forecasted in the Projections there can be no assurance that such assessed value will be maintained throughout the term of the Bonds. If at any time during the term of the Bonds the actual assessed value is less than forecasted the amount of the Payments in Lieu of Taxes will be likely less than forecasted and there may not be sufficient Payments in Lieu of Taxes paid into the Special Allocation Fund to meet the obligations to the Owners. Even if the County Assessor s determination of the assessed value of the Shopping Center equals or exceeds the forecasted assessed value the Developer or successor owners of the Shopping Center have the right to appeal such determination. RED Development LLC and its affiliated entities regularly appeal the reassessment of property they own. Additionally pursuant to certain leases certain tenants have also been granted the right to appeal such determination should the Developer or successor owners decline to do so. If any such appeal is not resolved prior to the time when real estate taxes and Payments in Lieu of Taxes are due the taxpayer may pay the taxes and Payments in Lieu of Taxes under protest. In such event the taxes and Payments in Lieu of Taxes being protested will not be available for deposit into the Special Allocation Fund until the appeal has been concluded. If the appeal is resolved in favor of the taxpayer the assessed value of the Shopping Center will be reduced in which event the Payments in Lieu of Taxes may be less than forecasted. See the caption TAX INCREMENT FINANCING IN MISSOURI Assessments and Collections of Ad Valorem Taxes herein. In addition if the assessed valuation in the City rises to the extent that a rollback in tax rates is required and if the increase in assessed valuation within the Redevelopment Area is not as extensive as the increase within the City generally the rollback in tax rates may result in a reduction in Payments in Lieu of Taxes. See TAX INCREMENT FINANCING IN MISSOURI Assessments and Collections of Ad Valorem Taxes Reassessment and Tax Rate Rollback herein. Changes in State and Local Tax Laws The Projections assume no substantial change in the basis of extending levying and collecting real property taxes Payments in Lieu of Taxes or Economic Activity Tax Revenues. Any change in the current system of collection and distribution of real property taxes Payments in Lieu of Taxes or Economic Activity Tax Revenues in the County or the City including without limitation the reduction or elimination of any such tax judicial action concerning any such tax or voter initiative referendum or action with respect to any such tax could adversely affect the availability of revenues to pay the principal of and interest on the Bonds. There can be no assurances however that the current system of collection and distribution of the real property taxes Payments in Lieu of Taxes or Economic Activity Tax Revenues in the County or the City will not be changed by any competent authority having jurisdiction to do so including without limitation the State the County the City school districts the courts or the voters and the Indenture does not limit the ability of the City to make any such changes with respect to City taxes and levies. Reduction in State and Local Tax Rates Any taxing district in the Redevelopment Area could lower its tax rate which would have the effect of reducing the Payments in Lieu of Taxes and Economic Activity Tax Revenues derived from the Redevelopment Area. Such a reduction in rates could be as a result of a desire of the governing body of the taxing district to lower tax rates the retirement of general obligation bonds of the taxing district taxpayer initiative or in response to state or local litigation or legislation affecting the broader taxing structure within the taxing district such as litigation or legislation affecting the primary reliance on ad valorem property taxes to fund elementary and secondary education in the State. -25-

32 Limitations on Remedies The remedies available to the Owners upon a default under the Indenture are in many respects dependent upon judicial action which is often subject to discretion and delay under existing constitutional and statutory law and judicial decisions including specifically Title 11 of the United States Code (the Federal Bankruptcy Code ). The various legal opinions to be delivered concurrently with delivery of the Bonds will be qualified as to enforceability of the various legal instruments by limitations imposed by bankruptcy reorganization insolvency or other similar laws affecting the rights of creditors generally now or hereafter in effect; to usual equity principles which shall limit the specific enforcement under laws of the State of Missouri as to certain remedies; to the exercise by the United States of America of the powers delegated to it by the United States Constitution; and to the reasonable and necessary exercise in certain exceptional situations of the police power inherent in the sovereignty of the State of Missouri and its governmental bodies in the interest of serving an important public purpose. Early Redemption Prior to Maturity Funds on deposit in the Revenue Fund in excess of the amount required to pay rebate if any to the United States of America to pay interest on the Bonds as and when due to restore any deficiency in the Debt Service Reserve Fund and to pay certain fees and expenses are required to be used for the purpose of redeeming Bonds prior to maturity pursuant to the redemption provisions described in this Official Statement. Any person who purchases a Series 2011 Bond at a price in excess of its principal amount or who holds such Bond trading at a price in excess of par should consider the fact that the Series 2011 Bonds are subject to redemption prior to maturity at the redemption prices described herein in the event such Bonds are redeemed prior to maturity. See the section herein captioned THE BONDS Redemption Provisions. It is anticipated that a substantial portion of the Bonds will be redeemed prior to their stated maturity. See PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS herein. Changes in Market Conditions The assessments and revenue estimates used in the Projections and in the projected average life of the Bonds contained herein under the section captioned PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS are based on the current status of the national and local business economy and assume a future performance of the real estate market similar to the historical performance of such market in the metropolitan Kansas City area. However changes in the market conditions for the City as well as changes in general economic conditions could adversely affect the rate of appreciation and/or inflation of the property in the Redevelopment Area and consequently the amount of Payments in Lieu of Taxes and Economic Activity Tax Revenues collected for deposit into the Special Allocation Fund. Factors Affecting Economic Activity Tax Revenues Economic Activity Tax Revenues are contingent and may be adversely affected by a variety of factors including without limitation economic conditions within the Redevelopment Area and the surrounding trade area and competition from other retail businesses rental rates and occupancy rates in private developments in the Redevelopment Area suitability of the Shopping Center for the local market local unemployment availability of transportation neighborhood changes crime levels in the area vandalism and rising operating costs interruption or termination of operation of the Shopping Center as a result of fire natural disaster strikes or similar events among many other factors. As a result of all of the above factors it is difficult to predict with certainty the expected amount of Economic Activity Tax Revenues which will be available for appropriation from the Special Allocation Fund to pay the principal of and interest on the Bonds. The retail sales industry is highly competitive. Existing retail businesses outside of the Redevelopment Area and the future development of retail businesses outside of the Redevelopment Area which are competitive with retail businesses in the Redevelopment Area may exist or may be developed after the date of this Official Statement. -26-

33 In addition to the foregoing the partial or complete destruction of the Shopping Center as a result of fire natural disaster or similar casualty event or the temporary or permanent closing of one or more retail establishments in the Shopping Center due to strikes or failure of the business would adversely affect the Economic Activity Tax Revenues derived from the Redevelopment Area and thereby adversely affect the revenues available to pay the Bonds and the interest thereon. Any insurance maintained by the owner of or the tenants in the Shopping Center for such casualty or business interruption would not include coverage for sales taxes that otherwise would be generated by the establishment. Projections The forecasted annual Payments in Lieu of Taxes and Economic Activity Tax Revenues shown in the Projections and herein are based on certain assumptions concerning facts and events over which the City and the Developer will have no control. No representation or warranty is or can be made about the amount or timing of any future income loss increased assessment or revenues or that actual results will approach the projections contained in the section captioned PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS. The City makes no representation or warranty (express or implied) as to the accuracy or completeness of any financial technical or statistical data or any estimates projections assumptions or expressions of opinion set forth in the Projections. Availability of Revenues for Special Mandatory Redemption of the Series 2011 Bonds The Indenture permits the application of revenues derived from Redevelopment Area A to the payment to the Developer of unreimbursed Reimbursable Project Costs prior to the application of such moneys to certain special mandatory redemptions of the Series 2011 Bonds. See SOURCES OF PAYMENT AND SECURITY FOR THE BONDS Indenture Funds and Accounts herein. Debt Service Reserve Fund At the time of issuance of the Bonds the Debt Service Reserve Fund will be established in an amount equal to (the Debt Service Reserve Requirement ). There can be no assurance that the amounts on deposit in the Debt Service Reserve Fund will be available if needed for payment of the Bonds in the full amount of the Debt Service Reserve Requirement because (1) of fluctuations in the market value of the securities deposited therein and/or (2) if funds are transferred to the Debt Service Fund sufficient revenues may not be available in the Revenue Fund to replenish the Debt Service Reserve Fund to the Debt Service Reserve Requirement. Determination of Taxability The Bonds are not subject to redemption nor are the interest rates on the Bonds subject to adjustment in the event of a determination by the Internal Revenue Service or a court of competent jurisdiction that the interest paid or to be paid on any Bond is or was includible in the gross income of the Owner of a Bond for federal income tax purposes. Such determination may however result in a breach of the City s tax covenants set forth in the Indenture which may constitute an event of default under the Indenture. Likewise the Indenture does not require the redemption of the Bonds or the adjustment of interest rates on the Bonds if the interest thereon loses its exemption from income taxes imposed by the State of Missouri. It may be that Owners would continue to hold their Bonds receiving principal and interest as and when due but would be required to include such interest payments in gross income for Missouri and federal income tax purposes. Risk of Audit The Internal Revenue Service (the Service ) has established an ongoing program to audit tax-exempt obligations to determine whether interest on such obligations should be included in gross income for federal -27-

34 income tax purposes. No assurance can be given that the Service will not commence an audit of the Bonds. Owners of the Bonds are advised that if an audit of the Bonds were commenced in accordance with its current published procedures the Service is likely to treat the City as the taxpayer and the Owners of the Bonds may not have a right to participate in such audit. Public awareness of any audit could adversely affect the market value and liquidity of the Bonds during the pendency of the audit regardless of the ultimate outcome of the audit. Lack of Rating and Market for the Series 2011 Bonds; Restrictions on Transfer The Series 2011 Bonds have not received any credit rating by any recognized rating agency. The absence of any such rating could adversely affect the ability of holders to sell the Series 2011 Bonds or the price at which the Series 2011 Bonds can be sold. No assurance can be given that a secondary market for the Bonds will develop following the completion of the offering of the Series 2011 Bonds. The Series 2011 Bonds maturing on October and October may only be acquired by and transferred to an accredited investor or a qualified institutional buyer. The Series 2011 Bonds maturing on April may only be acquired by and transferred to a qualified institutional buyer. See NOTICE TO INVESTORS herein. PROJECTED AVERAGE LIFE OF THE SERIES 2011 BONDS Set forth below is a chart prepared by the Original Purchaser of the projected cumulative redemption of the Series 2011 Bonds and the projected average life of the Series 2011 Bonds taking into account the special mandatory redemptions of the Series 2011 Bonds given the assumptions set forth in Appendix A hereto. THERE IS NO ASSURANCE THAT ACTUAL EVENTS WILL CORRESPOND WITH THE ASSUMPTIONS MADE. NO GUARANTEE OR ASSURANCES MAY BE MADE THAT SUCH PROJECTIONS WILL CORRESPOND WITH THE RESULTS ACHIEVED IN THE FUTURE. Case I assumes that revenues will be received in accordance with the projections set forth in Appendix A hereto as set forth in the table on page 35 in Appendix A. Case II assumes that 77% of the projected revenues set forth in the table on page 35 in Appendix A will actually be received. Case III assumes (a) those sales taxes which have expiration dates will be re-authorized without interruption by the voters at their current levels (b) no growth in Economic Activity Tax Revenues based upon such collections for the 12-month period from July 2010 to June 2011 and (c) receipt of Payments in Lieu of Taxes will include all buildings completed as of January in accordance with the projected receipt of such revenues set forth in Appendix A but assuming no further growth in such Payments in Lieu of Taxes. All cases assume no investment earnings on the moneys on deposit in the Revenue Fund or the Debt Service Reserve Fund. All cases assume that all retailers will promptly pay their sales taxes and will retain 2% of the amount of the taxes owed. See SOURCES OF PAYMENT AND SECURITY FOR THE BONDS Indenture Funds and Accounts herein. [Remainder of Page Intentionally Left Blank.] -28-

35 CASE I 1 Series 2011 Bonds Maturing 10/1/2023 Series 2011 Bonds Maturing 10/1/2026 Series 2011 Bonds Maturing 04/1/2030 As of Special Special Special Mandatory Redemption Cumulative Redemption Mandatory Redemption Cumulative Redemption` Mandatory Redemption Cumulative Redemption` 10/1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ Average Life years years years [Remainder of Page Intentionally Left Blank.] 1 Because Series 2011 Bonds which are redeemed pursuant to the Special Mandatory Redemption provisions of the Indenture are credited against the City s obligation to make Scheduled Mandatory Redemptions it is projected that no Scheduled Mandatory Redemption of the Series 2011 Bonds will be required. See Redemption Provisions - Credit Against Scheduled Mandatory Redemption herein. -29-

36 CASE II Series 2011 Bonds Maturing 10/1/2023 Series 2011 Bonds Maturing 10/1/2026 Series 2011 Bonds Maturing 04/1/2030 As of Scheduled Special Scheduled Special Scheduled Special Mandatory Redemption Mandatory Redemption Cumulative Redemption` Mandatory Redemption Mandatory Redemption Cumulative Redemption` Mandatory Redemption Mandatory Redemption Cumulative Redemption` 10/1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ Average Life years years years [Remainder of Page Intentionally Left Blank.] -30-

37 CASE III 1 Series 2011 Bonds Maturing 10/1/2023 Series 2011 Bonds Maturing 10/1/2026 Series 2011 Bonds Maturing 04/1/2030 As of Special Special Special Mandatory Redemption Cumulative Redemption Mandatory Redemption Cumulative Redemption Mandatory Redemption Cumulative Redemption 10/1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ Average Life years years years Prospective purchasers of the Bonds should carefully review Appendix A including particularly the assumptions underlying the forecasted Payments in Lieu of Taxes and Economic Activity Tax Revenues. [Remainder of Page Intentionally Left Blank.] 1 Because Series 2011 Bonds which are redeemed pursuant to the Special Mandatory Redemption provisions of the Indenture are credited against the City s obligation to make Scheduled Mandatory Redemptions it is projected that no Scheduled Mandatory Redemption of the Series 2011 Bonds will be required. See Redemption Provisions - Credit Against Scheduled Mandatory Redemption herein. -31-

38 SUMMIT FAIR The information under this caption has been provided by the Developer and the City does not makes any representation or warranty (express or implied) as to the accuracy or completeness of any information or any estimates projections assumptions or expressions of opinion set forth under this caption. Overview Approximately square feet of buildings in the Shopping Center (exclusive of the outparcels) have been constructed to date. Construction remaining to be commenced in the Shopping Center is approximately square feet. The total square footage of three outparcels which have been sold to third parties is approximately square feet. One additional outparcel sold to a third party is anticipated to have a building of approximately 7563 square feet. The total square footage estimated on the six remaining outparcels to be sold is to be approximately square feet. See SUMMARY OF LEASES; OCCUPANTS herein. The total number of parking spaces for the Shopping Center is approximately Construction lending has been provided by Keybank National Association as agent for U.S. Bank National Association First National Bank of Omaha Stillwater National Bank Wells Fargo Bank National Association Premier Bank and Realty Management Group LLC. The loan is evidenced by promissory notes and secured by a number of collateral documents including a deed of trust assignment of rents security agreement and fixture filing a payment guaranty and a performance and completion guaranty all of which is for the sole and exclusive benefit of Keybank National Association. built. The following shows which portions of the Shopping Center have been built and which remain to be Ownership of Shopping Center CBL Lee s Summit East LLC a Missouri limited liability company ( CBL ) is the owner of the land upon which the Shopping Center has been built. The Developer described below is the ground lessee of the -32-

39 Shopping Center under a 50 year ground lease dated April as amended and restated as of October with CBL under which the Developer has full rights to develop construct and manage the Shopping Center thereon. The Developer also has rights with the approval and cooperation of CBL to sell portions of the Shopping Center as the Developer deems appropriate for the development of the Shopping Center. CBL is an affiliate of CBL & Associates Properties Inc. a real estate investment trust listed on the New York Stock Exchange. Further information relating to CBL & Associates Properties Inc. can be found at The Developer RED Lee s Summit East LLC (the Developer ) is a Missouri limited liability company. Its sole member is Summit Fair Development Inc. a Missouri corporation which also serves as the manager of the Developer. The ultimate owners of Summit Fair Development Inc. include Michael L. Ebert Scott Rehorn and Dan Lowe individuals affiliated with RED Development LLC. Environmental Assessment Olsson Associates Kansas City Missouri prepared a Phase I Environmental Site Assessment in June 2006 and four Phase I Environmental Site Assessment Updates in May 2007 November 2007 March 2008 and October In June 2006 a portion of the property comprising the Shopping Center was undergoing a voluntary cleanup for volatile organic compounds in the groundwater and soil including removal of below ground storage tanks under the Missouri Department of Natural Resources Voluntary Cleanup Program. Because the clean up activities did not remediate such property to contaminant levels required for unrestricted use of such property a Declaration of Restrictive Covenant and Grant of Access (the Declaration ) has been recorded in the Recorder of Deeds office in Jackson County Missouri to impose certain restrictions on the use of such property. The purpose of the Declaration is to assure that human exposure to residual contaminants in the soil is maintained within the parameters of the risk assessment approved by the Missouri Department of Natural Resources. Pursuant to the Declaration the use occupancy and activity of and at such property are restricted to commercial use and the installation and use of potable water supply wells for drinking bathing and/or industrial purposes are prohibited. Also prohibited are the use of and exposure to the groundwater; any artificial penetration of the groundwater bearing unit(s) containing contaminants which could result in cross contamination of clean groundwater bearing units; installation of any new groundwater wells on such property except those used for investigative purposes; use of groundwater for drinking or other domestic purposes; and the release of groundwater to surface water bodies. The Architect and the Contractor The Preston Partnership LLC Atlanta Georgia (the Architect ) served as architect for the portion of the construction of the Shopping Center undertaken by the Developer. The Architect was formed in Similar retail projects that have involved the Architect include The Avenue Forsyth Cumming Georgia; The Arboretum Raleigh North Carolina; Shadow Lake Towne Center Papillion Nebraska; The Avenue at Viera Viera Florida; Bentwater Retail Village Paulding County Georgia; and August Mall Augusta Georgia. Jim Kidwell Construction Corporation Greenwood Missouri served as contractor for the site work and certain public and private improvements. Vratsinas Construction Company Irvine California served as contractor for the portion of the construction of the Shopping Center undertaken by the Developer. Founded in 1986 Vratsinas Construction Company has been involved in renovation and expansion projects for Galleria Dallas Dallas Texas; The Galleria Houston Texas; Park Place Mall Tucson Arizona; and Eastridge Mall San Jose California. -33-

40 The Manager The Developer has entered into a property management agreement (the Management Agreement ) with RED Development LLC a Missouri limited liability company as assignee of RED Asset Management Inc. a Missouri corporation entities related to the Developer (the Manager ). The Management Agreement provides for a management fee equal to 3.5% of the gross receipts (as defined in the Management Agreement) but not less than a minimum monthly management fee of The initial term of the Management Agreement ended on December Unless written notice to terminate is given by either party to the other at least 30 days prior to the end of the initial term or any subsequent annual term the Management Agreement shall be automatically renewed for an additional one year term. At any time during the initial term or in any subsequent annual term the Management Agreement may be terminated without cause by either the Developer or the Manager upon not less than 30 days prior written notice to the other party. During the initial term of the Management Agreement the Management Agreement may be terminated as follows: (a) In the event that the Developer or the Manager shall materially default in the performance or observance or any term condition or covenant contained in the Management Agreement and such default shall continue for a period of 30 days after written notice shall have been given to the defaulting party specifying the default and requesting that the same be remedied; provided that if the default cannot be remedied within the 30 day period the defaulting party shall be deemed to be in compliance if such party shall in good faith have commenced to remedy the default within such 30 day period shall subsequently prosecute to completion with diligence and continuity the remedying of the default and shall remedy the default within a reasonable time; or (b) In the event of the appointment of a receiver to take possession of all or substantially all the assets of the Manager or an assignment by the Manager for the benefit of creditors or any action taken or suffered by the Manager under any insolvency bankruptcy reorganization moratorium or other debtor relief act or statute whether now existing or hereafter amended or enacted. The Manager provides services in Missouri Kansas Arizona Wisconsin and Nebraska. The Manager was incorporated in 2004 and currently has over square feet of commercial property under its management. Properties being managed include the following: Name Owner Size (Approx.) Type Location SummitWoods Crossing R.E.D. Capital Holdings of Lee s Summit SPE. LLC Retail Lee s Summit Missouri Legends Outlets Legends of KC LP Retail Kansas City Kansas Shadow Lake Towne Center Shadow Lake Towne Center LLC Retail Papillion Nebraska Shops at Norterra Norterra West LLC Retail Phoenix Arizona -34-

41 Construction Operation and Reciprocal Easement Agreement The Developer Macy s Retail Holdings Inc. and J.C. Penney Corporation have entered into a Construction Operation and Reciprocal Easement Agreement as amended and supplemented (the Declaration ) relating to the Shopping Center. Pursuant to the Declaration easements for parking and pedestrian uses utilities storm water drainage construction access roads and lights are granted. In addition the parties agree to certain design development improvement plans. Certain use restrictions are imposed including the prohibition of certain uses such as flea markets tattoo parlors or off track betting facilities. Common area maintenance standards are imposed upon the Developer. Competition The Developer has identified the following shopping centers as competitors of the Shopping Center: Community Improvement District A portion of the Shopping Center is located within a community improvement district formed pursuant to the Missouri Community Improvement District Act Sections through of the Revised Statutes of Missouri as amended. Fifty percent of the sales taxes imposed by such community improvement district constitute Economic Activity Tax Revenues. The boundaries of the Redevelopment Area and the community improvement district are shown on the map below. All of the retailers identified under the caption SUMMARY OF THE LEASES; OCCUPANTS are located within the community improvement district. -35-

42 SUMMARY OF LEASES; OCCUPANTS Leases The lease summaries shown below are not intended to be complete summaries of all potentially material terms of such documents. Most but not all of the leases provide that the tenants shall pay a share of real estate taxes and assessments (which would include Payments in Lieu of Taxes) levied against the Shopping Center and the leased premises pursuant to specific formulas set forth in each lease (typically based on a ratio of the floor area of the leased premises versus the floor area of the Shopping Center). The leases also require the tenants to maintain varying levels of public liability and property damage insurance although self insurance is permitted under certain circumstances. Certain tenants under specific conditions (as such conditions are set forth in the applicable lease) may assign their interests in their leases without the consent of the Developer. Excluded from the list of tenants are short-term seasonal leases. -36-

43 LEASES AT THE SHOPPING CENTER Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use Beauty Brands Inc. d/b/a Beauty Brands Salon Spa Superstore Circle Restaurant Group East LLC d/b/a B2 A Burger Boutique Blanc 2 A Burger Boutique or Blanc Burgers & Bottles 1 March years with 2 five year renewal terms April years with 1 three year renewal term 6630 Retail sale of beauty products hair and beauty supplies skin care products make up nail care products and related accessories and merchandise typically sold in the tenant s other similar locations and incidentally for the operation of a high end full service hair cutting and styling salon and a day spa 3058 Primarily for the sale of gourmet hamburgers and premium bottled beers sodas and wine The Buckle Inc. d/b/a The Buckle October years with 1 five year renewal term 5000 Retail sale of men s women s and children s clothing shoes accessories and related items and other items as are routinely sold in The Buckle stores and for providing alteration services Charming Charlie Inc. d/b/a Charming Charlie July years with 2 five year renewal terms The retail sale of women s accessories handbags gift items apparel and shoes 1 Tenant has ceased operations at the Shopping Center; space has not yet been re-let. -37-

44 Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use The Children s Place Retail Stores Inc. d/b/a The Children s Place May years with 2 five year renewal terms 4023 The display and retail sale of infants children s and pre-teen clothing and footwear and the retail sale of related juvenile accessories such as jewelry purses belts hats and scarves; juvenile stationery toys books furniture and such other items as sold in the majority of tenant's other stores operating under the trade name and (ii) incidental to the sale and display of the foregoing items tenant at its sole cost and expense may provide in the premises a play area for children. Coldwater Creek U.S. Inc. d/b/a Coldwater Creek April years with 2 five year renewal terms 5502 The display and sale of a complementary mix of goods and services as more particularly described in the lease including but not limited to goods and services relating to or containing reproductions of copyrighted material or trademarks created owned or licensed by Coldwater Creek U.S. Inc. or any of its affiliated or subsidiary companies including private label and branded goods and services Escapist Inc. d/b/a Escapist Skateboarding July years with 1 three year renewal term 1080 The retail sale of skateboarding equipment and gear -38-

45 Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use KC Nutrition of MO Inc. d/b/a Complete Nutrition The Dress Barn Inc. d/b/a Dress Barn Misses & Woman April years with 1 five year renewal term October years with 4 five year renewal terms 1755 Operation of a retail store selling vitamins mineral supplements herbal supplements weight gain products diet and weight loss products sports nutrition supplements and health foods 7996 The retail sale and display of women s apparel and shoes and incidentally for the sale of gift items and accessories and any health and beauty products DSW Shoe Warehouse Inc. d/b/a DSW Shoes April years with 2 five year renewal terms Initially as DSW Shoes or following its opening for business for any other lawful retail use subject to conditions specified in the lease Visionary Properties Inc. d/b/a EyeMasters May years 3826 The retail sale of prescription and non prescription eyeglasses eyewear sunglasses contact lenses and eyecare related products and the provision of eyecare related services including optometrist and ophthalmologist examinations and medical treatment Fajita Willy s Inc. d/b/a July years with 1 Fajita Willy s 1 five year renewal term 2345 The operation of a first class fast casual Mexican themed restaurant 1 Tenant has ceased operations at the Shopping Center; space has not yet been re-let. -39-

46 Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use The Finish Line Inc. d/b/a Finish Line August years 3886 The retail sale of men s women s and children s shoes roller blades in line skates licensed product active wear licensed and branded apparel product and related items and sports and casual clothes and incidentally for the display and retail sale of athletic apparel and accessories and items related thereto athletic products which are an accessory to Tenant s primary business and sunglasses novelty items bobble head dolls stadium chairs and watches and other products sold in a majority of Tenant s stores Gennaio Boutique LLC d/b/a Gennaio Boutique September years with 1 five year renewal term The retail sale of men s and young men s apparel women s juniors and girls apparel jewelry handbags and men s and women s accessories and incidentally for the retail sale of candles men s and women s shoes perfumes/ fragrances and picture frames Glo Nail Lounge LLC d/b/a Glo Nail Lounge March years 1538 The retail sale of nail products and services 1 Initially the tenant leased 1150 square feet; the tenant then leased an additional 729 square feet opening such space for business in October

47 Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use Gymboree Retail Stores Inc. d/b/a Crazy 8 Heavenly Olive Oils and Vinegars Inc. d/b/a Heavenly Olive Oils and Vinegars July years 2061 The operation of a Crazy 8 store in a manner similar to the operation of other Crazy 8 stores in the United States or in the case of a permitted assignment or sublease as a retail store selling infants and children s apparel and accessories and incidentally for the sale of gifts shoes toys games musical products video tapes books play and child related equipment lifestyle products for infants and children and such other items as are sold from time to time in tenant s similarly merchandised stores or web-site October years 1066 The retail sale of olive oil and vinegar and ancillary sales of packaged food items associated with cooking oils spices cooking utensils and kitchen décor I.O. Metro LLC d/b/a I.O. Metro February years with 2 five year renewal terms 9821 The retail sale of furniture and related accessories Compton Schmidt Inc. d/b/a Jake s Summit a Life is Good Neighborhood Shoppe October years 1598 A retail store selling Life is Good branded merchandise Jos. A. Bank Clothiers Inc. d/b/a Jos. A. Bank Jos. A. Bank Clothiers J.A. Bank or J. Bank May years with 1 five year renewal term 4010 The operation of a men s and women s retail clothing business together with allied or auxiliary uses thereof -41-

48 Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use Nine24 Ventures LLC d/b/a Massage Heights May months with 1 36-month renewal term and a second 18month renewal term 2348 The operation of a typical Massage Heights store a professional therapeutic massage clinic including the sale of therapeutic massage services and other related services and products Bothwell Saxton Restaurants LLC d/b/a McAlister s Deli April years with 2 five year renewal terms 3605 The operation of a delicatessen style limited service sit down restaurant Andrea Carnes d/b/a Micah s Sing Lou Chou and Xiang Ding Gao d/b/a Sakura Sushi DBK Enterprises Inc. d/b/a The Silver Source February years 1397 The retail sale of women s and children s clothing and accessories which accessories include but are not limited to shoes jewelry handbags and related items February years 3435 Operation of a full table service Chinese and Japanese restaurant serving food and beverages February years 1183 The retail sale of jewelry and secondarily for the sale of accessories and beauty care products Smallcakes LLC d/b/a Smallcakes February years with 1 five year renewal term 1038 The retail sale of cupcakes desserts and other baked goods and bakery items beverages and as an incidental part of Tenants business for the retail sale of Smallcakes branded items to include without limitation hats t shirts and beverage containers -42-

49 Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use RPR Enterprises Inc. d/b/a/ Topsy s and Cookie Factory Bakery July Years 1562 Primarily for the retail sale of popcorn candy apples candy gift canisters ice cream limited to 12 flavors or less and other items sold at other Topsy s locations and cookies cookie cakes and bakery and confectionary items similarly sold at Cookie Factory Bakeries; and incidentally for the retail sale of coffee soda bottled water lemonade limeade and other beverages Tastee Yogurt Summit Fair LLC d/b/a Yogurtini Occupants January years with 2 additional terms of three years and two years respectively 1600 The retail sale of Yogurtini food and beverage items with non alcoholic beverages incident thereto pursuant to Tenant s then current menu (as the same may evolve) Pursuant to an Agreement of Sale dated as of January Summit Northridge LLC a Missouri limited liability company acquired two lots within the Shopping Center. Such buyer has constructed an approximately 7090 square foot building on one lot and an approximately 7563 square foot building on the other lot. Tenants of Summit Northridge LLC within the Shopping Center are as follows: Tenant Actual/Anticipated Opening Date Approximate Term Approximate Gross Square Footage Permitted Use Noodles & Company d/b/a Noodles & Company) February years with 2 five year renewal terms 2500 Operation of a typical Noodles & Company restaurant National Vision Inc. d/b/a America s Best March years with 2 five year renewal terms Solely for the sale of eyeglasses sunglasses contact lenses accessories and supplies; optometric and ophthalmological

50 Wireless Vision L.L.C. d/b/a T- Mobile B.A.Y. Ventures LLC d/b/a Jimmy John s Gourmet Sandwiches Sleep One Inc. d/b/a Sleep One October years with 1 five year renewal term June years with 3 five year renewal terms June years with 2 five year renewal terms practice and procedures; prescribing selling and fitting of hearing aids; and operation of optical finish and surface lab (including the grinding of lenses and any other means for the fabrication of lenses and glasses); for the sale of managed care plans and products; for the sale of products sold by other optical retail firms; and for related goods and services offered in a majority of other states operated by Tenant or its affiliates 1395 Sale and rental of personal communication services and products and other wireless or mobile telecommunication and information services and products (including any substitutes and the technological evolutions thereof) including but not limited to telecommunication and other voice data imaging internet and information devises and related accessories and activities ancillary thereto A typical Jimmy John s Gourmet Sandwich restaurant 3500 Sale of mattresses and related products Pursuant to an Agreement of Sale dated as of April the Developer sold approximately acres of land within the Shopping Center to Macy s Retail Holdings Inc. a New York corporation. ( Macy s ). Macy s has constructed an approximately square foot building. Macy s opened for business on July Pursuant to a Purchase & Sales Agreement dated as of July J.C. Penney Corporation Inc. a Delaware corporation ( Penney ) acquired approximately acres of land within the Shopping Center. Penney has constructed an approximately square foot J.C. Penney s which opened for business on July

51 Pursuant to an Agreement of Sale dated November the Developer sold two outparcels within the Shopping Center to GMRI Inc. for the construction and operation of (a) an approximately 7441 square foot Olive Garden restaurant and (b) an approximately 7013 square foot Red Lobster restaurant. Olive Garden opened for business on August ; Red Lobster opened for business on August THE CITY The Bonds are not a general obligation of the City and are payable solely from the revenues described herein. The following information regarding the City is provided as general background information only. General Incorporated in 1868 the City of Lee s Summit Missouri is a charter city under the laws of the State of Missouri. The City is approximately 65 square miles in area and is located in southeast Jackson County and northern Cass County in the southeastern quadrant of the Kansas City Missouri metropolitan area. The City s 2010 population is The City s population has grown from in 1980 to in 1990 to in 2000 and to a population of in the 2010 census. The construction of U.S. Interstate Highway 470 through the northern part of the City and other highway improvements have also been a major factor in the City s continued growth and development. Between 1960 and 1980 the land area of the City increased by from 13 square miles to approximately 65 square miles. The City has pursued a policy of annexation since 1960 and is today the third largest city in land area in the State of Missouri. This policy has resulted in a City that has large tracts of land available for development as well as an established industrial base and residential area. The City operates under the Mayor-City Council form of government with a City Manager appointed by the Mayor with the approval of the City Council. The Mayor is elected by the voters from the City at-large. The City is divided into four districts and each district is represented by two Council Members elected by voters within the district for alternating two-year terms. The current elected officials of the City are: Name Title Randy Rhoads Mayor James Hallam Councilman District 1 Kathy Hofmann Councilman District 1 Brian Whitley Councilman District 2 Allan S. Gray II Councilman District 2 Joseph C. Spallo Councilman District 3 Ed Cockrell Councilman District 3 Robert T. Johnson Councilman District 4 David Mosby Councilman District 4-45-

52 Administration Stephen A. Arbo Brian Scott Conrad E. Lamb Teresa S. Williams City Manager Assistant City Manager Director of Finance City Attorney The City Council makes policy and legislative decisions. The City provides a full range of municipal service including law enforcement fire protection water and sewer services community enrichment and development and various social services. Population and Housing The City had a population as of the 2010 Census data of persons. Population Trends Year Lee Summit Cass County Jackson County State of Missouri Source: 2010 Census Data. Age Distribution The following table indicates the 2000 census counts of population by age categories in the City: Age Population Percentage of Total 0 to 5 years old % 5 to 9 years old to 14 years old to 19 years old to 24 years old to 34 years old to 44 years old to 54 years old to 59 years old to 64 years old to 74 years old to 84 years old Over 85 years old Source: 2000 Census Data; percentages do not total 100% because of rounding. -46-

53 Comparative Median Home Value City of Lee Summit Cass County Jackson County State of Missouri Source: 2000 Census Data. Employment Listed below are the major employers located in the City and the number employed by each: Major Employers Type of Business Number of Employees Lee Summit R-7 School District Public school 2581 AT&T Telecommunication Telecommunication - customer service 1200 Truman Medical Center Lakewood Health-care 1128 John Knox Village Retirement community 1050 Longview Community College Higher education 1000 Nat l Benefits Ctr/Dept. of Homeland Security Immigration office 900 City of Lee s Summit City government 659 St. Luke s East Health care 608 Caremark Prescription drug management 559 Lee s Summit Hospital Health care 550 Source: Comprehensive Annual Financial Report for the City for fiscal year ended June Employee Work Force By Occupation Service Occupations Sales and Office Occupations Management Professional and Related Occupations Production Transportation and Material Moving Occupations Construction Extraction and Maintenance Occupations Farming Fishing and Forestry Occupations Source: 2000 U.S. Census Bureau. -47-

54 Employee Work Force By Industry Educational Health and Social Services Arts Entertainment Recreation Accommodation and Food Services Manufacturing Agriculture Forestry and Fisheries Transportation and Warehousing and Utilities Retail Trade Professional Scientific Management Administrative and Waste Management Services Public Administration Other Services (Except Public Administration) Finance Insurance Real Estate and Rental and Leasing Information Construction Wholesale Trade Source: 2000 U.S. Census Bureau. Comparative Unemployment Rates Year City of Lee Summit Cass County Jackson County State of Missouri % 5.6% 6.9% 5.8% Source: U.S. Department of Labor - U.S. Bureau of Labor Statistics. Income Statistics The following table sets forth certain income statistics for the City and for comparative purposes of other census entities: Per Capital Income (1999 Dollars) Median Family Income (1999 Dollars) Median Household Income (1999 Dollars) City of Lee Summit Other Entities: Cass County Jackson County State of Missouri Source: 2000 U.S. Census Bureau -48-

55 ABSENCE OF LITIGATION There is no controversy suit or other proceeding of any kind pending against the City or to the City s knowledge threatened against the City wherein or whereby any question is raised or may be raised questioning disputing or affecting in any way the legal organization of the City or its boundaries or the right or title of any of its officers to their respective offices the Redevelopment Plan or the legality of any official act shown to have been done in connection with the issuance of the Bonds or the constitutionality or validity of the Bonds or any of the proceedings had in relation to the authorization issuance or sale thereof. LEGAL MATTERS Legal matters incident to the authorization issuance and sale of the Bonds are subject to the approving legal opinion of Gilmore & Bell P.C. Kansas City Missouri Bond Counsel whose approving opinion will be delivered with the Bonds. The expected form of such opinion is attached as Appendix C hereto. Certain legal matters related to this Official Statement will be passed upon by Gilmore & Bell P.C. St. Louis Missouri. Certain legal matters will be passed upon for the City by its special counsel Stinson Morrison Hecker LLP Kansas City Missouri. Certain legal matters will be passed upon for the Developer by Lewis Rice & Fingersh L.C. Kansas City Missouri and The Katz Law Firm Overland Park Kansas. Thompson Coburn LLP St. Louis Missouri serves as counsel to the Underwriter. TAX MATTERS The following is a summary of the material Federal and State of Missouri income tax consequences of holding and disposing of the Series 2011 Bonds. This summary is based upon laws regulations rulings and judicial decisions now in effect all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of Federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of owners subject to special treatment under the Federal income tax laws (for example dealers in securities or other persons who do not hold the Series 2011 Bonds as a capital asset tax-exempt organizations individual retirement accounts and other tax deferred accounts and foreign taxpayers) and except for the income tax laws of the State of Missouri does not discuss the consequences to an owner under any state local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Series 2011 Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding Federal state local and other tax considerations of holding and disposing of the Series 2011 Bonds. Opinion of Bond Counsel In the opinion of Gilmore & Bell P.C. Bond Counsel under the law existing as of the issue date of the Series 2011 Bonds: Federal and Missouri Tax Exemption. The interest on the Series 2011 Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes and is exempt from income taxation by the State of Missouri. Alternative Minimum Tax. Interest on the Series 2011 Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations but is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. -49-

56 Bank Qualification. The Series 2011 Bonds have not been designated as qualified tax-exempt obligations for purposes of Section 265(b) of the Code. Bond Counsel s opinions are provided as of the date of the original issue of the Series 2011 Bonds subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Series 2011 Bonds in order that interest thereon be or continue to be excludable from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Series 2011 Bonds in gross income for federal and Missouri income tax purposes retroactive to the date of issuance of the Series 2011 Bonds. Bond Counsel is expressing no opinion regarding other federal state or local tax consequences arising with respect to the Series 2011 Bonds but has reviewed the discussion under the heading TAX MATTERS. Other Tax Consequences Original Issue Discount. For Federal income tax purposes original issue discount ( OID ) is the excess of the stated redemption price at maturity of a Series 2011 Bond over its issue price. The issue price of a Series 2011 Bond is the first price at which a substantial amount of the Series 2011 Bonds of that maturity have been sold (ignoring sales to bond houses brokers or similar persons or organizations acting in the capacity of underwriters placement agents or wholesalers). Under Section 1288 of the Code OID on taxexempt bonds accrues on a compound basis. The amount of OID that accrues to an owner of a Series 2011 Bond during any accrual period generally equals (1) the issue price of that Series 2011 Bond plus the amount of OID accrued in all prior accrual periods multiplied by (2) the yield to maturity on that Series 2011 Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) minus (3) any interest payable on that Series 2011 Bond during that accrual period. The amount of OID accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period will be excludable from gross income for Federal income tax purposes and will increase the owner s tax basis in that Series 2011 Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of OID. Sale Exchange or Retirement of Series 2011 Bonds. Upon the sale exchange or retirement (including redemption) of a Series 2011 Bond an owner of the Series 2011 Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale exchange or retirement of the Series 2011 Bond (other than in respect of accrued and unpaid interest) and such owner s adjusted tax basis in the Series 2011 Bond. To the extent a Series 2011 Bond is held as a capital asset such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Series 2011 Bond has been held for more than 12 months at the time of sale exchange or retirement. Reporting Requirements. In general information reporting requirements will apply to certain payments of principal interest and premium paid on the Series 2011 Bonds and to the proceeds paid on the sale of the Series 2011 Bonds other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner s federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Series 2011 Bonds should be aware that ownership of the Series 2011 Bonds may result in collateral federal income tax consequences to certain taxpayers including without limitation financial institutions property and casualty insurance companies individual recipients of Social Security or Railroad Retirement benefits certain S corporations with excess net passive income foreign corporations subject to the branch profits tax life -50-

57 insurance companies and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Series 2011 Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Series 2011 Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase ownership and disposition of the Series 2011 Bonds including the possible application of state local foreign and other tax laws. UNDERWRITING Stifel Nicolaus & Company Incorporated (the Underwriter ) has agreed subject to certain conditions to purchase the Series 2011 Bonds from the City at an aggregate purchase price of (which takes into account an original issue discount of and an Underwriter s discount of ). The Underwriter will be obligated to accept delivery and pay for all of the Series 2011 Bonds if any are delivered. The Series 2011 Bonds are being purchased by the Underwriter from the City in the normal course of the Underwriter s business activities. The Underwriter intends to offer the Series 2011 Bonds to the public at a price not in excess of the offering price set forth on the cover page of this Official Statement. The Underwriter may allow concessions from the public offering price to certain dealers banks and others. After the initial public offering the public offering price may be varied from time to time by the Underwriter. CERTAIN RELATIONSHIPS Gilmore & Bell P.C. Bond Counsel has represented the Underwriter in transactions unrelated to the issuance of the Series 2011 Bonds but is not representing the Underwriter in connection with the issuance of the Series 2011 Bonds. Lewis Rice & Fingersh L.C. has represented the Underwriter in transactions unrelated to the issuance of the Series 2011 Bonds but is not representing the Underwriter in connection with the issuance of the Series 2011 Bonds. PROJECTIONS Alvarez & Marsal Kansas City Missouri has prepared the Projections which are attached hereto as Appendix A. Certain financial and statistical data included in this Official Statement have been excerpted from the Projections. Neither the City nor the Underwriter make any representation or warranty (express or implied) as to the accuracy or completeness of any financial technical or statistical data or any estimates projections assumptions or expressions of opinion set forth in the Projections. No party assumes any responsibility to update such information after the delivery of the Series 2011 Bonds. Appendix A must be read in its entirety to understand the assumptions upon which the forecasts are based and the qualifications which have been made. There is no assurance that the forecasts will be achieved. Actual future events will vary from the forecasts and such variances may be material. -51-

58 NO RATINGS The City has not applied to Standard & Poor s Moody s Investors Service Inc. or any other similar rating service for a rating of the Series 2011 Bonds. The City does not anticipate that any rating will ever be sought. MISCELLANEOUS Information set forth in this Official Statement has been furnished or reviewed by certain officials of the City and other sources as referred to herein which are believed to be reliable. Any statements made in this Official Statement involving matters of opinion estimates or projections whether or not so expressly stated are set forth as such and not as representations of fact and no representation is made that any of the estimates or projections will be realized. The descriptions contained in this Official Statement of the Series 2011 Bonds do not purport to be complete and are qualified in their entirety by reference thereto. [Remainder of Page Intentionally Left Blank.] -52-

59 The form of this Official Statement and its distribution and use has been approved by the City. Neither the City nor any of its officials or employees in either their official or personal capacities has made any warranties representations or guarantees regarding the financial condition of the City or the City s ability to make payments required of it; and further neither the City nor its officials or employees assumes any duties responsibilities or obligations in relation to the issuance of the Bonds other than those either expressly or by fair implication imposed on the City. CITY OF LEE S SUMMIT MISSOURI By: /s/ Randy Rhoads Mayor -53-

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61 APPENDIX A PROJECTIONS A 1

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63 May Mr. Conrad Lamb Finance Director City of Lee s Summit 220 SE Green Street Lee s Summit Missouri Re: City of Lee s Summit Missouri Tax Increment Revenue Bonds (Summit Fair Project) Series 2011 (the Bonds ) Dear Mr. Lamb: We have prepared for the City of Lee s Summit Missouri a Retail Sales Tax Study City of Lee s Summit Missouri Tax Increment Revenue Bonds (Summit Fair Project) City Council Presentation As of May (the Retail Sales Tax Study ). In connection with the offering and sale of the Bonds by Stifel Nicolaus & Company we hereby consent to the inclusion of the Retail Sales Tax Study in the Preliminary Official Statement and the final Official Statement. All of the other terms and conditions contained in our Study remain and it remains the City s responsibility to inform readers of those terms and conditions. As such all such readers will be subject to the terms and conditions stated therein. Alvarez & Marsal Charles E. Finch Managing Director cc: James Lahay

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65 Tax Increment Finance Revenue Projection Study City of Lee s Summit Missouri Summit Fair Development As of May

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67 1100 Walnut Street Suite 2970 Kansas City Missouri Telephone: (816) Facsimile: (816) M a y M r. C o n r a d L a m b F i n a n c e D i r e c t o r C i t y o f L e e s S u m m i t M i s s o u r i S E G r e e n S t r e e t L e e ' s S u m m i t M i s s o u r i D e a r M r. L a m b : T h e a c c o m p a n y i n g r e p o r t T a x I n c r e m e n t F i n a n c e R e v e n u e P r o j e c t i o n S t u d y f o r t h e S u m m i t F a i r D e v e l o p m e n t T a x I n c r e m e n t F i n a n c e P r o j e c t h a s b e e n p r e p a r e d f o r t h e C i t y o f L e e s S u m m i t M i s s o u r i. O u r s c o p e o f s e r v i c e s i n c l u d e s t h e f o l l o w i n g t a s k s : T a s k 1 : S t u d y A p p l i c a t i o n M a t e r i a l s A l v a r e z & M a r s a l w i l l r e v i e w m a t e r i a l s p r o v i d e d b y t h e D e v e l o p e r a n d t h e C i t y t h a t r e l a t e t o l o c a l d e m o g r a p h i c s m a r k e t a b s o r p t i o n a n d f i n a n c i a l p r o j e c t i o n s i n c l u d i n g s a l e s t a x p r o j e c t i o n s. T a s k 2 : R e v i e w D e v e l o p e r A s s u m p t i o n s A l v a r e z & M a r s a l w i l l e v a l u a t e t h e a s s u m p t i o n s t h a t a r e b u i l t i n t o t h e D e v e l o p e r s f i n a n c i a l p r o j e c t i o n s t o a s s i s t i n t e s t i n g w h e t h e r t h e y a p p e a r t o b e r e a l i s t i c c o n s i s t e n t a n d v e r i f i a b l e. T h i s p r o c e s s w i l l i n v o l v e t h e f o l l o w i n g s t e p s : a. T e s t i n g o f s a l e s p r o j e c t i o n s. b. T e s t i n g o f L e e s S u m m i t m a r k e t c o n d i t i o n s a n d t r e n d s a s s u m p t i o n s t o e v a l u a t e t h e p r i c e p o i n t s a n d g r o w t h r a t e s a n t i c i p a t e d f o r t h e e x i s t i n g d e v e l o p m e n t. c. T e s t i n g o f d e v e l o p e r r e a l e s t a t e p r o p e r t y t a x p r o j e c t i o n s. T a s k 3 : A s s e s s C o m p e t i t i v e / C o m p a r a b l e D e v e l o p m e n t s P r e p a r e a n a n a l y s i s o f t h o s e p r o j e c t s t h a t w o u l d c o m p e t e w i t h t h e e x i s t i n g d e v e l o p m e n t. T a s k 4 : S u m m i t F a i r T a x I n c r e m e n t F i n a n c e R e v e n u e P r o j e c t i o n s A l v a r e z & M a r s a l w i l l e s t i m a t e t h e i n c r e m e n t a l s a l e s t a x e s a n d p a y m e n t i n l i e u o f t a x e s t h a t w i l l a c c r u e t o t h e T I F D e v e l o p m e n t A r e a o n a n a n n u a l b a s i s. T h e s e e s t i m a t e s w i l l b e b a s e d o n t h e m a r k e t p r o j e c t i o n s t e s t e d a b o v e a s p r e s e n t v a l u e c a l c u l a t i o n s a r e v a l i d a t e d. O f c o u r s e a c t u a l r e s u l t s m a y v a r y s i g n i f i c a n t l y f r o m e s t i m a t e s d u e t o u n f o r e s e e n m a r k e t c h a n g e s. T a s k 5 : P r e p a r e D e t a i l e d R e p o r t A l v a r e z & M a r s a l w i l l p r e p a r e a d e t a i l e d r e p o r t t h a t d e s c r i b e s o u r f i n d i n g s b a s e d o n t h e i n f o r m a t i o n o b t a i n e d. T h i s r e p o r t w i l l a d d r e s s t h e c o m p l e t e n e s s a n d r e a s o n a b l e n e s s o r c o n v e r s e l y t h e d e f i c i e n c i e s a n d i n c o n s i s t e n c i e s p e r c e i v e d i n t h e m a t e r i a l s p r o v i d e d. T h i s a n a l y s i s i s b a s e d o n e s t i m a t e s a s s u m p t i o n s a n d i n f o r m a t i o n g a t h e r e d f r o m o u r r e s e a r c h r e l a t e d t o t h e d e v e l o p m e n t ( P r o j e c t o r D e v e l o p m e n t f o r t h e T a x I n c r e m e n t F i n a n c e D e v e l o p m e n t A r e a ). T h e s o u r c e s o f i n f o r m a t i o n a n d b a s e s f o r t h e a s s u m p t i o n s a r e s t a t e d h e r e i n. W h i l e w e b e l i e v e t h a t t h e s o u r c e s o f i n f o r m a t i o n a r e P a g e i

68 K K 1100 Walnut Street Suite 2970 Kansas City Missouri Telephone: (816) Facsimile: (816) r e a s o n a b l e a n d r e l i a b l e A l v a r e z & M a r s a l h a s n o t a s p a r t o f t h i s e n g a g e m e n t p e r f o r m e d a n a u d i t o r r e v i e w o f a n y o f t h e f i n a n c i a l a n d m a r k e t i n f o r m a t i o n u s e d a n d t h e r e f o r e d o e s n o t e x p r e s s a n o p i n i o n o r a n y o t h e r f o r m o f a s s u r a n c e o n t h e a c c u r a c y o f s u c h i n f o r m a t i o n. S i n c e o u r r e c o m m e n d a t i o n s a n d c o n c l u s i o n s a r e b a s e d o n e s t i m a t e s a n d a s s u m p t i o n s t h a t a r e i n h e r e n t l y s u b j e c t t o u n c e r t a i n t y a n d v a r i a t i o n d e p e n d i n g o n e v o l v i n g e v e n t s w e d o n o t r e p r e s e n t t h e m a s r e s u l t s t h a t w i l l o r w i l l n o t b e a c h i e v e d. S o m e a s s u m p t i o n s i n e v i t a b l y w i l l n o t m a t e r i a l i z e w h i l e u n a n t i c i p a t e d e v e n t s a n d c i r c u m s t a n c e s w i l l o c c u r ; t h e r e f o r e t h e a c t u a l r e s u l t s a c h i e v e d m a y v a r y m a t e r i a l l y f r o m t h e e x a m p l e s a n d c o n c l u s i o n s h e r e i n. T h e t e r m s o f o u r e n g a g e m e n t d o n o t p r o v i d e f o r r e p o r t i n g o n e v e n t s a n d t r a n s a c t i o n s t h a t o c c u r r e d s u b s e q u e n t t o o u r r e s e a r c h c o m p l e t e d o n M a y O u r r e p o r t i s i n t e n d e d s o l e l y f o r t h e C i t y s u s e r e l a t e d t o t h e p r o j e c t. I t s h o u l d n o t b e r e l i e d u p o n f o r a n y o t h e r p u r p o s e o r b y a n y o t h e r e n t i t y. H o w e v e r i t i s u n d e r s t o o d t h a t t h e C i t y m a y h a v e o u t s i d e p a r t n e r s a d v i s o r s s o p h i s t i c a t e d f u n d i n g s o u r c e s a n d r e g u l a t o r y a g e n c i e s i n v o l v e d i n t h i s i n i t i a t i v e. I t i s t h e C i t y s r e s p o n s i b i l i t y t o i n f o r m a l l s u c h p a r t i e s o f t h e t e r m s a n d c o n d i t i o n s o f t h i s e n g a g e m e n t a n d a s s u c h a l l s u c h p a r t i e s w i l l b e s u b j e c t t o t h e t e r m s a n d c o n d i t i o n s s t a t e d h e r e i n. F o r t h i s R e t a i l S a l e s T a x S t u d y t h e f o l l o w i n g r e s o u r c e s w e r e u s e d i n t h e p r e p a r a t i o n o f o u r r e p o r t a n d a n a l y s i s : D o l l a r s & C e n t s o f S h o p p i n g C e n t e r s / T h e S c o r e U r b a n L a n d I n s t i t u t e a n d t h e I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g C e n t e r s C i t y o f L e e s S u m m i t S a l e s T a x R e m i t t a n c e R e p o r t s U. S. D e p a r t m e n t o f C o m m e r c e C e n s u s B u r e a u R e t a i l T r a d e R e p o r t s J a c k s o n C o u n t y M i s s o u r i P r o p e r t y T a x R e c o r d s G r e a t e r a n s a s C i t y C h a m b e r o f C o m m e r c e E c o n o m i c F o r e c a s t a n s a s C i t y B u s i n e s s J o u r n a l A n n u a l B o o k o f F a c t s M i s s o u r i D e p a r t m e n t o f T r a n s p o r t a t i o n I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g C e n t e r s L i f e s t y l e C e n t e r S t u d y E S R I M a r k e t P r o f i l e T h e N a t i o n a l R e t a i l F e d e r a t i o n R E D D e v e l o p m e n t T e n a n t P r o f i l e a n d M o n t h l y S a l e s R e p o r t s U. S. D e p a r t m e n t o f L a b o r M i s s o u r i D e p a r t m e n t o f R e v e n u e C i t y o f L e e s S u m m i t F i n a n c e D e p a r t m e n t R E D R e t a i l S a l e s C o m p a r i s o n s o f L i f e S t y l e C e n t e r s R e s p e c t f u l l y s u b m i t t e d I R R C o r p o r a t e & P u b l i c F i n a n c e L L C A l v a r e z & M a r s a l p r o p r i e t a r y d a t a a n d r e s e a r c h A l v a r e z & M a r s a l C h a r l e s E. F i n c h M a n a g i n g D i r e c t o r N a n c y L. Z i e l k e S e n i o r D i r e c t o r P a g e i i

69 Table of Contents P a g e E x e c u t i v e S u m m a r y S u m m i t F a i r D e v e l o p m e n t O v e r v i e w B a c k g r o u n d o f S u m m i t F a i r D e v e l o p m e n t S u m m i t F a i r T I F S i t e O v e r v i e w S u m m i t F a i r T e n a n t M i x L o c a l M a r k e t A n a l y s i s L i f e s t y l e C e n t e r C o n c e p t s T r a d e A r e a A n a l y s i s A r e a D e m o g r a p h i c C h a r a c t e r i s t i c s L o c a l E c o n o m i c T r e n d s R e t a i l S a l e s T a x a n d P I L O T P r o j e c t i o n s T r e n d s i n R e t a i l S a l e s F o r e c a s t s L e e s S u m m i t / S u m m i t F a i r R e t a i l S a l e s A n a l y s i s C i t y o f L e e s S u m m i t S a l e s T a x C o l l e c t i o n s S u m m i t F a i r T I F S a l e s T a x P r o j e c t i o n s S u m m i t F a i r C I D S a l e s T a x P r o j e c t i o n s P a y m e n t i n L i e u o f T a x P r o j e c t i o n s ( P I L O T ) A p p e n d i c e s A p p e n d i x I T e n a n t O v e r v i e w A p p e n d i x I I T o p A r e a S h o p p i n g C e n t e r s A p p e n d i x I I I D e m o g r a p h i c S n a p s h o t P a g e 1

70 K K K Executive Summary T h e p r i m a r y u n d e r l y i n g p u r p o s e o f t h i s s t u d y w a s t o p r e p a r e a r e v e n u e p r o j e c t i o n r e p o r t s h o w i n g i n c r e m e n t a l e c o n o m i c a c t i v i t y t a x e s ( E A T S ) a n d p a y m e n t s i n l i e u o f t a x e s ( P I L O T s ) r e v e n u e t h a t w i l l b e a v a i l a b l e t o p a y d e b t s e r v i c e o n t h e S e r i e s t a x i n c r e m e n t b o n d s f o r t h e n e w l y d e v e l o p e d S u m m i t F a i r D e v e l o p m e n t A r e a i n L e e s S u m m i t M i s s o u r i. O u r a n a l y s i s o f t h e E A T s a n d P I L O T s a r e f o r o n l y t h o s e r e t a i l e s t a b l i s h m e n t s t h a t a r e o p e n a s o f D e c e m b e r O u r s t u d y w a s b a s e d o n i n f o r m a t i o n r e c e i v e d f r o m t h e C i t y o f L e e s S u m m i t F i n a n c e D e p a r t m e n t a n d R E D D e v e l o p m e n t a n d o t h e r i n d u s t r y r e s o u r c e s. S u m m i t F a i r i s a w e l l d e v e l o p e d a n d d e f i n e d l i f e s t y l e c e n t e r r e t a i l d e v e l o p m e n t. T h e r e t a i l e r s c u r r e n t l y o p e r a t i n g i n t h e d e v e l o p m e n t p r o v i d e a m i x o f h i g h p r o f i l e r e t a i l e r s r e s t a u r a n t s a n d b o u t i q u e r e l a t e d e s t a b l i s h m e n t s. T h e t r a d e a r e a f o r t h e m a j o r i t y o f t h e d e v e l o p m e n t s i t e i s a f i f t e e n m i l e r a d i u s f r o m t h e I n t e r s t a t e a n d U S H i g h w a y 5 0 i n t e r c h a n g e c e n t e r l o c a t i o n. T h e l o c a l d e m o g r a p h i c c h a r a c t e r i s t i c s o f t h e t r a d e a r e a g e n e r a l l y s u p p o r t t h e r e t a i l p r o f i l e o f t h e S u m m i t F a i r D e v e l o p m e n t. R E D D e v e l o p m e n t h a s a t r a c k r e c o r d i n t h e d e v e l o p m e n t a n d m a n a g e m e n t o f l i f e s t y l e c e n t e r s a n d o p e n S h o p p i n g C e n t e r s w h i c h c o m b i n e d i s t i n c t i v e a r c h i t e c t u r e ; a n o r i g i n a l a n d c o m p l e m e n t a r y t e n a n t m i x ; a c o m b i n a t i o n o f s h o p p i n g d i n i n g a n d e n t e r t a i n m e n t ; e x t e n s i v e l a n d s c a p i n g a n d h a r d s c a p i n g ; a n d a f o c u s o n t e n a n t r e l a t i o n s h i p s. S u m m i t F a i r i s b a s e d o n a r e l a t i v e l y n e w s h o p p i n g c o n c e p t w i t h t h e c o m m o n c h a r a c t e r i s t i c s o f a n u p s c a l e i m a g e c a t e r i n g t o a n u p p e r - i n c o m e c l i e n t e l e a n d d e s i g n e d a s a d e s t i n a t i o n f o r s h o p p i n g d i n i n g a n d e n t e r t a i n m e n t. T h e t r a d e a r e a f o r t h e d e v e l o p m e n t s i t e i s a p r i m a r y a n d s e c o n d a r y m a r k e t c o n s i s t i n g o f c e n t r a l t o s o u t h e r n J a c k s o n C o u n t y i n c l u d i n g m o s t o f t h e c i t i e s o f L e e s S u m m i t B e l t o n G r a n d v i e w a n d e a s t e r n J o h n s o n C o u n t y a n s a s i n c l u d i n g p o r t i o n s o f L e a w o o d a n d O v e r l a n d P a r k a n s a s. a n s a s C i t y M i s s o u r i a n d T h e l o c a l d e m o g r a p h i c c h a r a c t e r i s t i c s o f t h e t r a d e a r e a g e n e r a l l y s u p p o r t t h e r e t a i l p r o f i l e o f t h e P r o j e c t. R E D D e v e l o p m e n t h a s a t r a c k r e c o r d i n t h e d e v e l o p m e n t a n d m a n a g e m e n t o f l a r g e o p e n a i r S h o p p i n g C e n t e r s l i k e S u m m i t F a i r a n d t h e a d j a c e n t h y b r i d p o w e r / l i f e s t y l e c e n t e r S u m m i t W o o d s w h i c h t h e y c o m p l e t e d i n T h e d e v e l o p m e n t a r e a c o n s i s t s o f a T a x I n c r e m e n t F i n a n c i n g D i s t r i c t ( T I F ) a n d a C o m m u n i t y I m p r o v e m e n t D i s t r i c t ( C I D ). A s o u t l i n e d o n t h e m a p o n p a g e 2 3 t h e C I D b o u n d a r i e s a r e t h e s a m e a s t h e T I F b o u n d a r i e s w i t h t h e e x c e p t i o n o f t h e a r e a s o u t h o f C h i p m a n R o a d. T h e r e v e n u e s p l e d g e d t o t h e T I F b o n d s a r e t h e n e t i n c r e m e n t a l P a g e 2

71 Executive Summary S t a t u t o r y E A T s ( i n c l u s i v e o f o n e h a l f o f t h e 1 c e n t C I D t a x ) a n d t h e n e t i n c r e m e n t a l P I L O T s. S a l e s t a x e s g e n e r a t e d i n a n y m o n t h w i l l b e r e c e i v e d b y t h e C i t y o f L e e s S u m m i t t w o m o n t h s l a t e r. H o w e v e r s o m e o f t h e s m a l l s q u a r e f o o t a g e r e t a i l b u s i n e s s e s a r e n o t r e q u i r e d t o r e m i t o n a m o n t h l y b a s i s b u t r a t h e r o n a q u a r t e r l y o r s e m i - a n n u a l r e m i t t a n c e s c h e d u l e. O u r r e t a i l s a l e s a n d p r o p e r t y t a x p r o j e c t i o n s a r e b a s e d o n t h e f o l l o w i n g s o u r c e s a n d a s s u m p t i o n s : A c t u a l C i t y C o u n t y a n d C I D E A T s a n d P I L O T r e m i t t a n c e s s i n c e t h e i n c e p t i o n o f t h e T I F S a l e s t e n a n t v o l u m e r e p o r t s p r o v i d e d b y R E D R e t a i l s a l e s c o m p a r i s o n s o f s i m i l a r l i f e s t y l e c e n t e r s p r o v i d e d b y R E D T r e n d d a t a f r o m t h e U r b a n L a n d I n s t i t u t e a n d t h e I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g C e n t e r s L o c a l a n d n a t i o n a l e c o n o m i c f o r e c a s t s r e f l e c t i n g S t r o n g a v e r a g e a n d m e d i a n h o u s e h o l d i n c o m e t h r e s h o l d s w i t h i n t h e p r i m a r y a n d s e c o n d a r y t r a d e a r e a s P o s i t i v e t r e n d s i n g r o w t h o f h o u s e h o l d i n c o m e a n d p o p u l a t i o n g r o w t h A b i l i t y o f t h e p r i m a r y a n d s e c o n d a r y t r a d e a r e a s t o a b s o r b a d d i t i o n a l r e s i d e n t i a l d e v e l o p m e n t s I n c r e a s e d c o n f i d e n c e i n c o n s u m e r s p e n d i n g S p e n d i n g P o t e n t i a l I n d e x ( S P I ) h o u s e h o l d b a s e a n d t h e t r a d e a r e a s p e n d i n g f o r p r o d u c t s o r s e r v i c e s r e l a t i v e t o n a t i o n a l a v e r a g e s A l v a r e z & M a r s a l p r o p r i e t a r y m o d e l i n g a n d a n a l y s i s a n d r e t a i l s a l e s c o m p a r i s o n s P u b l i s h e d e c o n o m i c f o r e c a s t s a r e s h o w i n g t h a t a r e c o v e r y f r o m t h e c u r r e n t r e c e s s i o n w i l l t a k e f r o m o n e t o t w o y e a r s. O u r m o d e l f o r e s t i m a t i n g r e t a i l s a l e s i s p r o j e c t e d t o i n c r e a s e f r o m d e c l i n e d a n d l e v e l s. W e h a v e a s s u m e d a n n u a l C P I i n f l a t i o n a r y i n c r e a s e s a n d i n c r e a s e d r e t a i l s a l e s f r o m n e w s p e n d i n g w i t h i n t h e p r i m a r y a n d s e c o n d a r y t a r g e t m a r k e t s. O u r p r o j e c t i o n s a l s o a s s u m e r e t a i l s a l e s s y n e r g y w i t h i n t h e S u m m i t F a i r a n d t h e a d j a c e n t S u m m i t W o o d s. T h e m o d e l a l s o i n c l u d e s a n n u a l i n c r e a s e s i n r e t a i l s a l e s d u e t o p r o j e c t e d g r o w t h i n n e w h o u s e h o l d a n d r e l a t e d n e w s p e n d i n g. T h e s t a t u t o r y p e r i o d o f t h e T I F D i s t r i c t e x t e n d s t h r o u g h A p r i l P a g e 3

72 Executive Summary S u m m i t F a i r T I F D e v e l o p m e n t A r e a S a l e s T a x P r o j e c t i o n : A s d i s c u s s e d i n d e t a i l o n p a g e 2 9 t h e p r o j e c t e d r e t a i l s a l e s g e n e r a t e d i n s p a c e o c c u p i e d b y r e t a i l e s t a b l i s h m e n t s a s o f D e c e m b e r i s e s t i m a t e d t o g e n e r a t e m i l l i o n i n n e t C i t y a n d C o u n t y s a l e s t a x r e c e i p t s f r o m t h r o u g h e a r l y A s s h o w n o n p a g e 2 8 t h i s p r o j e c t i o n i s i n a d d i t i o n t o t h e t o t a l C i t y a n d C o u n t y n e t i n c r e m e n t a l T I F s a l e s t a x c o l l e c t i o n s o f r e c e i v e d b y t h e C i t y o f L e e s S u m m i t t h r o u g h e a r l y F e b r u a r y B a s e d o n p r o j e c t e d i n f l a t i o n a r y a n d a n n u a l h o u s e h o l d g r o w t h a s s u m p t i o n s t h e e s t i m a t e d n e t T I F E A T s f o r b o t h t h e C i t y a n d C o u n t y s a l e s t a x e s r a n g e f r o m : i n t o i n t o i n I n a c c o r d a n c e w i t h t h e T I F P l a n w e h a v e a s s u m e d t h a t 5 0 p e r c e n t o f t h e i n c r e m e n t a l r e t a i l s a l e s t a x g e n e r a t e d i n t h e d i s t r i c t w i l l b e a v a i l a b l e f o r t h e T I F p o r t i o n o f t h e e c o n o m i c a c t i v i t y t a x e s. S u m m i t F a i r T I F D e v e l o p m e n t A r e a C o m m u n i t y I m p r o v e m e n t A r e a ( C I D ) S a l e s T a x P r o j e c t i o n s : T h e T I F p o r t i o n o f t h e C I D S a l e s T a x i s b a s e d o n 5 0 p e r c e n t o f t h e 1 p e r c e n t s a l e s t a x. A s s h o w n o n p a g e 3 0 t h e p r o j e c t e d r e t a i l s a l e s g e n e r a t e d i n s p a c e o c c u p i e d b y r e t a i l e s t a b l i s h m e n t s a s o f D e c e m b e r i s e s t i m a t e d t o g e n e r a t e 8. 7 m i l l i o n i n n e t C I D E A T s s a l e s t a x r e c e i p t s f r o m t h r o u g h e a r l y A s s h o w n o n p a g e 2 8 t h i s p r o j e c t i o n i s i n a d d i t i o n t o t h e n e t C I D c o l l e c t i o n s r e c e i v e d f r o m t h r o u g h e a r l y F e b r u a r y t o t a l i n g B a s e d o n p r o j e c t e d i n f l a t i o n a r y a n d a n n u a l h o u s e h o l d g r o w t h a s s u m p t i o n s t h e e s t i m a t e d a n n u a l n e t C I D E A T s r a n g e s f r o m : i n t o i n t o i n T I F D e v e l o p m e n t D i s t r i c t P a y m e n t i n L i e u o f T a x P r o j e c t i o n s : A s s h o w n o n p a g e s 3 1 a n d 3 2 o f t h e r e p o r t w e a s s u m e d t h a t t h e c u r r e n t p r o p e r t y t a x r a t e s w i l l r e m a i n c o n s t a n t f o r t h e T I F p e r i o d o f A p r i l O u r p r o j e c t i o n s a s s u m e P I L O T s g e n e r a t e d f r o m b u i l d i n g s c o m p l e t e o r u n d e r c o n s t r u c t i o n a s o f D e c e m b e r W e p r o j e c t n e t P I L O T r e v e n u e s f o r t h e S u m m i t F a i r D e v e l o p m e n t A r e a t o t o t a l m i l l i o n w h i c h i n c l u d e s t h e i n a c t u a l c u r r e n t a n d p r i o r y e a r P I L O T p a y m e n t s t o t h e C i t y. F o r t h e a s s e s s m e n t / p a y m e n t y e a r p r o j e c t i o n p e r i o d o f t o w e e s t i m a t e n e t P I L O T p a y m e n t s o f m i l l i o n. W e e s t i m a t e a n i n c r e a s e i n a s s e s s e d v a l u a t i o n t o m i l l i o n i n d u e t o c o n s t r u c t i o n o f b u i l d i n g c o m p l e t e d i n / a n d f u t u r e b i - a n n u a l a s s e s s e d v a l u e i n c r e a s e s b e g i n n i n g i n o f 1. 0 p e r c e n t. T h e a n n u a l n e t p a y m e n t s r a n g e f r o m : m i l l i o n i n t o m i l l i o n i n t o m i l l i o n i n T h e s e p a y m e n t s a r e d u e b y D e c e m b e r 3 1 o f e a c h y e a r a n d a r e e x p e c t e d t o b e a v a i l a b l e t o p a y d e b t s e r v i c e o n b o n d s d u r i n g t h e P a g e 4

73 Executive Summary f o l l o w i n g c a l e n d a r y e a r. O u r p r o j e c t i o n s i n c l u d e a n e t r e d u c t i o n o f 1. 6 p e r c e n t i n p r o c e s s i n g f e e s t o J a c k s o n C o u n t y M i s s o u r i. F u t u r e S u m m i t F a i r L e a s e u p a n d O c c u p a n c y : N o t w i t h s t a n d i n g t h e l i m i t e d n a t u r e o f t h e p r o j e c t i o n s s e t f o r t h i n t h i s S t u d y R E D r e p o r t s t h a t c u r r e n t l y 8 2 p e r c e n t o f S u m m i t F a i r i s o c c u p i e d w i t h t h e r e m a i n d e r e x c l u d i n g p a d s i t e s t o b e s u b s t a n t i a l l y b u i l t a n d o c c u p i e d b y t h e e n d o f t o s p r i n g w h i c h c o u l d a d d t o t h e p r o j e c t e d r e v e n u e s a v a i l a b l e t o s u p p o r t t h e b o n d s. P a g e 5

74 K K Summit Fair Development Overview B a c k g r o u n d o f S u m m i t F a i r D e v e l o p m e n t S u m m i t F a i r l o c a t e d w i t h i n t h e C i t y o f L e e s S u m m i t i n J a c k s o n C o u n t y M i s s o u r i i s a l i f e s t y l e c e n t e r c u r r e n t l y c o n s i s t i n g o f s q f t o f c o m p l e t e d b u i l d i n g s ( e x c l u d i n g o u t p a r c e l s ) o f w h i c h s q f t i s c u r r e n t l y o c c u p i e d s q f t i s l e a s e d b u t n o t y e t o p e n i s s u b j e c t t o a l e t t e r o f i n t e n t f o r f u t u r e o c c u p a n c y a n d s q f t i s b u i l t b u t v a c a n t. T h e r e i s a n a d d i t i o n a l s q f t b u i l d i n g t h a t i s p l a n n e d t o b e b u i l t. S u m m i t F a i r a l s o c o n s i s t s o f 1 0 o u t p a r c e l s t o t a l i n g a p p r o x i m a t e l y s q f t o f p r o j e c t e d r e t a i l s p a c e. T h e t o t a l s q u a r e f o o t a g e o f t h r e e o u t p a r c e l s w h i c h h a v e b e e n s o l d t o t h i r d p a r t i e s c o n s t r u c t e d a n d o c c u p i e d i s a p p r o x i m a t e l y s q f t. O n e a d d i t i o n a l o u t p a r c e l s o l d t o a t h i r d p a r t y i s a n t i c i p a t e d t o i n c l u d e a s q f t b u i l d i n g. T h e t o t a l s q u a r e f o o t a g e e s t i m a t e d o n t h e r e m a i n i n g 6 o u t p a r c e l s y e t t o b e s o l d i s a p p r o x i m a t e l y s q f t. T h e S h o p p i n g C e n t e r h a s s u r f a c e p a r k i n g s p a c e s. T h e o w n e r o f t h e l a n d w h i c h S u m m i t F a i r i s b u i l t u p o n i s C B L L e e s S u m m i t E a s t L L C a M i s s o u r i l i m i t e d l i a b i l i t y c o m p a n y. C B L i s a n a f f i l i a t e o f C B L & A s s o c i a t e s P r o p e r t i e s I n c. a r e a l e s t a t e i n v e s t m e n t t r u s t l i s t e d o n t h e N e w Y o r k S t o c k E x c h a n g e. R E D L e e s S u m m i t E a s t L L C ( t h e D e v e l o p e r ) i s t h e D e v e l o p e r o f S u m m i t F a i r S h o p p i n g C e n t e r. T h e D e v e l o p e r i s t h e g r o u n d l e s s e e o f t h e S h o p p i n g C e n t e r u n d e r a 5 0 y e a r g r o u n d l e a s e d a t e d A p r i l a s a m e n d e d a n d r e s t a t e d a s o f O c t o b e r w i t h C B L. R E D h a s f u l l r i g h t s t o d e v e l o p c o n s t r u c t a n d m a n a g e t h e S u m m i t F a i r D e v e l o p m e n t. R E D a l s o h a s r i g h t s w i t h t h e a p p r o v a l a n d c o o p e r a t i o n o f C B L t o s e l l p o r t i o n s o f t h e S u m m i t F a i r D e v e l o p m e n t a s t h e D e v e l o p e r d e e m s a p p r o p r i a t e f o r t h e d e v e l o p m e n t o f t h e S u m m i t F a i r D e v e l o p m e n t. T h e D e v e l o p e r i s a M i s s o u r i l i m i t e d l i a b i l i t y c o m p a n y. I t s s o l e m e m b e r i s S u m m i t F a i r D e v e l o p m e n t I n c. a M i s s o u r i c o r p o r a t i o n w h i c h a l s o s e r v e s a s t h e m a n a g e r o f t h e D e v e l o p e r. R E D D e v e l o p m e n t h a s c o - h e a d q u a r t e r s i n a n s a s C i t y M i s s o u r i a n d S c o t t s d a l e A r i z o n a. T h e d e v e l o p m e n t f i r m w a s f o r m e d i n w h e n t w o r e a l e s t a t e b r o k e r s i n a n s a s C i t y ( D a n L o w e a n d M i k e H e l m u t h ) p a r t n e r e d w i t h t w o r e a l e s t a t e b r o k e r s i n S c o t t s d a l e ( M i k e E b e r t a n d S c o t t R e h o r n ). S h a r e h o l d e r s o f S u m m i t F a i r D e v e l o p m e n t I n c. i n c l u d e M i c h a e l L. E b e r t S c o t t R e h o r n a n d D a n L o w e. R E D d e v e l o p s l e a s e s m a n a g e s a n d o w n s S h o p p i n g C e n t e r s a n d m i x e d - u s e p r o j e c t s i n r a p i d l y g r o w i n g c o m m u n i t i e s t h r o u g h o u t t h e M i d w e s t a n d S o u t h w e s t. W h i l e t h e c o m p a n y s p r i m a r y f o c u s i s o n t h e d e v e l o p m e n t o f o p e n - a i r r e g i o n a l S h o p p i n g C e n t e r s b e t t e r k n o w n a s l i f e s t y l e c e n t e r s R E D h a s e x p e r i e n c e w i t h n e i g h b o r h o o d g r o c e r y - a n c h o r e d c e n t e r s r e g i o n a l p o w e r c e n t e r s a n d m a l l r e - d e v e l o p m e n t. P a g e 6

75 K K K K Summit Fair Development Overview S u m m i t F a i r S h o p p i n g C e n t e r r e p r e s e n t s R E D s l i f e s t y l e c e n t e r c o n c e p t. E a c h o f R E D s c e n t e r s c o m b i n e s d i s t i n c t i v e a r c h i t e c t u r e ; a n o r i g i n a l a n d c o m p l e m e n t a r y t e n a n t m i x ; a c o m b i n a t i o n o f s h o p p i n g d i n i n g a n d e n t e r t a i n m e n t ; e x t e n s i v e l a n d s c a p i n g a n d h a r d s c a p i n g ; a n d a f o c u s o n t e n a n t r e l a t i o n s h i p s. R E D s d e s i g n g o a l i s t o m a k e t h e s h o p p i n g e x p e r i e n c e m o r e t h a n b u y i n g a p r o d u c t. T o d a t e R E D D e v e l o p m e n t h a s c o m p l e t e d 2 0 S h o p p i n g C e n t e r s t o t a l i n g m o r e t h a n 9 m i l l i o n s q u a r e f e e t r e t a i n s o w n e r s h i p i n 1 2 o f t h e s e c e n t e r s a n d c o n t i n u e s t o e v a l u a t e d e v e l o p m e n t o p p o r t u n i t i e s i n c o m m u n i t i e s t h r o u g h o u t t h e c o u n t r y. R E D p l a n s t o c o n t i n u e i t s m a i n f o c u s o n r e t a i l d e v e l o p m e n t a l t h o u g h s e v e r a l o f i t s p r o j e c t s a r e i n c o r p o r a t i n g l i m i t e d a m o u n t s o f m i x e d - u s e s p a c e o r a r e b e i n g s e a m l e s s l y i n t e g r a t e d i n t o m a s t e r - p l a n n e d c o m m u n i t i e s t o c r e a t e a c o h e s i v e i n t e g r a t i o n o f r e s i d e n t i a l a n d c o m m e r c i a l. R E D p r o v i d e s s e r v i c e s i n M i s s o u r i a n s a s A r i z o n a N e v a d a W i s c o n s i n a n d N e b r a s k a. R E D c u r r e n t l y m a n a g e s o v e r 1 1 m i l l i o n s q u a r e f e e t o f c o m m e r c i a l p r o p e r t y i n c l u d i n g t h e f o l l o w i n g : N a m e O w n e r S i z e ( A p p r o x. ) T y p e L o c a t i o n S u m m i t W o o d s C r o s s i n g R. E. D. C a p i t a l H o l d i n g s o f L e e s S u m m i t S P E L L C R e t a i l L e e s S u m m i t M i s s o u r i L e g e n d s O u t l e t s L e g e n d s o f C L P R e t a i l a n s a s C i t y a n s a s S h a d o w L a k e T o w n e C e n t e r S h a d o w L a k e T o w n e C e n t e r L L C R e t a i l P a p i l l i o n N e b r a s k a S h o p s a t N o r t e r r a N o r t e r r a W e s t L L C R e t a i l P h o e n i x A r i z o n a O u r r e s e a r c h f o u n d t h e f o l l o w i n g m a j o r h i g h l i g h t s o f t h e S u m m i t F a i r D e v e l o p m e n t A r e a : T h e G r a n d O p e n i n g o f t h e t w o S u m m i t F a i r S h o p p i n g C e n t e r a n c h o r s J C P e n n e y s a n d M a c y s o p e n e d i n A u g u s t T h e a d j a c e n t S u m m i t W o o d s C r o s s i n g o p e n e d i n t h e f a l l o f w i t h s t r o n g t e n a n t c o m m i t m e n t s a n d h a s r e t a i n e d a l l o f i t s o r i g i n a l a n c h o r s a n d j u n i o r a n c h o r s. C o n v e r s e l y t h e I n d e p e n d e n c e r e t a i l a r e a h a s l o s t o v e r s q u a r e f e e t o f a n c h o r s a n d j u n i o r a n c h o r s. T h e c o m b i n a t i o n o f S u m m i t F a i r S h o p p i n g C e n t e r a n d S u m m i t W o o d s C r o s s i n g p r o v i d e s 1. 3 m i l l i o n s q u a r e f e e t o f r e t a i l c r e a t i n g a r e g i o n a l d e s t i n a t i o n. P a g e 7

76 K Summit Fair Development Overview O v e r e m p l o y e e s w o r k n e x t d o o r t o S u m m i t F a i r D e v e l o p m e n t i n t h e o n e m i l l i o n s q u a r e f o o t S u m m i t T e c h n o l o g y C e n t e r a n d a n a d d i t i o n a l w o r k w i t h i n a o n e m i l e r a d i u s. R e c e n t l y c o m p l e t e d h i g h w a y i m p r o v e m e n t s t o t h e I / H w y 5 0 i n t e r c h a n g e w i l l p r o v i d e g r e a t l y i m p r o v e d a c c e s s t o S u m m i t F a i r D e v e l o p m e n t a n d a l l s u r r o u n d i n g b u s i n e s s e s. I m p r o v e m e n t s o f t h e a r e a f r o m P r y o r R o a d t o B l u e P a r k w a y w e r e c o m p l e t e d i n s p r i n g L e e s S u m m i t h a s l e d E a s t e r n J a c k s o n C o u n t y g r o w t h f o r t h e p a s t 2 0 y e a r s. E x p e r i e n c i n g a n 8 2 p e r c e n t i n c r e a s e i n p o p u l a t i o n f r o m t o L e e s S u m m i t i s o n t r a c k t o g r o w b y m o r e t h a n 8 p e r c e n t b e t w e e n a n d M o n e y M a g a z i n e ( J u l y ) l i s t e d L e e s S u m m i t a s o n e o f t h e B e s t P l a c e s t o l i v e i n t h e U n i t e d S t a t e s. L e e s S u m m i t i s w e l l k n o w n b o t h r e g i o n a l l y a n d n a t i o n a l l y f o r i t s a w a r d - w i n n i n g s c h o o l s y s t e m o f f e r i n g o u t s t a n d i n g e d u c a t i o n a n d b e y o n d. T h e L e e s S u m m i t R - 7 S c h o o l D i s t r i c t s e r v e s o v e r s t u d e n t s i n 2 5 s c h o o l s. F o r t h e p a s t e i g h t c o n s e c u t i v e y e a r s t h e d i s t r i c t h a s e a r n e d a p e r f e c t s c o r e f o r M i s s o u r i s D i s t i n c t i o n o f P e r f o r m a n c e A w a r d t h e S t a t e s h i g h e s t r e c o g n i t i o n f o r a c a d e m i c a c h i e v e m e n t. S u m m i t F a i r D e v e l o p m e n t T I F S i t e O v e r v i e w T h e S u m m i t F a i r S h o p p i n g C e n t e r w i t h i n t h e S u m m i t F a i r D e v e l o p m e n t o p e n e d i n w i t h m a j o r a n c h o r s o f M a c y s a n d J C P e n n e y. T h e S u m m i t F a i r S h o p p i n g C e n t e r i n c l u d e s h o m e f u r n i s h i n g s s t o r e s m e n s a n d w o m e n s c l o t h i n g e a t e r i e s s i t - d o w n r e s t a u r a n t s a n d s p e c i a l t y r e t a i l e r s. T h e D e v e l o p e r r e p o r t e d t h a t a s o f J a n u a r y a p p r o x i m a t e l y s q u a r e f e e t o f b u i l d i n g s i n t h e S h o p p i n g C e n t e r ( e x c l u s i v e o f t h e o u t p a r c e l s ) h a v e b e e n c o n s t r u c t e d t o d a t e. A p p r o x i m a t e l y s q u a r e f e e t r e m a i n s t o b e c o n s t r u c t e d. P a g e 8

77 Summit Fair Development Overview S u m m i t F a i r i s l o c a t e d a t t h e i n t e r s e c t i o n o f I n t e r s t a t e a n d U S H i g h w a y 5 0 a n d i s Summit Woods a d j a c e n t t o t h e e x i s t i n g R E D D e v e l o p m e n t S u m m i t W o o d s C r o s s i n g. R E D D e v e l o p m e n t e x p e c t s t h a t t h e s y n e r g y f r o m S u m m i t F a i r D e v e l o p m e n t w i t h t h e S u m m i t W o o d C r o s s i n g s t o r e s w i l l m a k e t h i s a r e a a s h o p p i n g d e s t i n a t i o n f o r s o u t h e a s t J a c k s o n C o u n t y. Summit Fair T h e d e s i g n o f S u m m i t F a i r D e v e l o p m e n t i s p a t t e r n e d a f t e r a n o l d - f a s h i o n e d t r a i n s t a t i o n t h a t f e a t u r e s M a i n S t r e e t s h o p p i n g a r e a s w i t h l a n d s c a p i n g w a l k w a y s a n d s u r f a c e p a r k i n g a r e a s. T h e c o n s t r u c t i o n o f t h e m i l l i o n d e v e l o p m e n t i s 9 0 p e r c e n t c o m p l e t e w i t h p l a n s r e f l e c t i n g s u b s t a n t i a l l y f u l l o c c u p a n c y b y t h e f o u r t h q u a r t e r o f t o s p r i n g ( e x c l u d i n g r e m a i n i n g p a d s i t e s ). E x i s t i n g o c c u p i e d b u s i n e s s e s a r e s h a d e d i n p e a c h a n d a r e a s t h a t a r e b u i l t a n d r e a d y t o b e o c c u p i e d a r e s h a d e d i n b l u e. T h e a r e a s s h a d e d i n g r e e n a r e a r e a s w i t h i n t h e d e v e l o p m e n t a r e a t h a t a r e n o t c u r r e n t l y b u i l t a t t h i s t i m e. P a g e 9

78 Summit Fair Development Overview A c c o r d i n g t o t h e l a t e s t a v a i l a b l e t r a f f i c c o u n t s f r o m t h e M i s s o u r i D e p a r t m e n t o f T r a n s p o r t a t i o n a n a v e r a g e o f v e h i c l e s p a s s t h r o u g h t h e i n t e r s e c t i o n o f I n t e r s t a t e a n d U S H i g h w a y 5 0 e a c h w e e k d a y. S u m m i t F a i r S h o p p i n g C e n t e r T e n a n t M i x A s n o t e d o n p a g e 6 S u m m i t F a i r S h o p p i n g C e n t e r h a s a p p r o x i m a t e l y s q f t ( e x c l u d i n g o u t p a r c e l s ) o f b u i l d i n g s c o m p l e t e o f w h i c h s q. f t. i s c u r r e n t l y o c c u p i e d. T h e a c c o m p a n y i n g c h a r t p r o v i d e s a l i s t i n g o f t h e m a j o r t e n a n t s i n t h e n e w l y d e v e l o p e d S u m m i t F a i r S h o p p i n g C e n t e r. R E D D e v e l o p m e n t d i d p r o v i d e a l i s t o f c o m m i t t e d / f u t u r e t e n a n t s s i t e l o c a t i o n s a n d t h e a n t i c i p a t e d s t o r e l e a s e a n d o p e n i n g d a t e s. A s s h o w n i n t h e t a b l e t o t h e r i g h t s i x n e w s t o r e s h a v e o r a r e s c h e d u l e d t o o p e n i n l a t e / e a r l y H o w e v e r t h e p r o j e c t e d s a l e s r e v e n u e s f r o m t h e s e s i x b u s i n e s s e s a r e n o t i n c l u d e d i n t h e p r o j e c t i o n s. R E D e s t i m a t e s t h a t t h e r e m a i n d e r o f t h e S u m m i t F a i r S h o p p i n g C e n t e r s i t e w o u l d b e f u l l y o c c u p i e d a n d o p e n a s o f t h e f o u r t h q u a r t e r o f t o s p r i n g ( e x c l u d i n g p a d s i t e s ). A p p e n d i x I o f t h i s r e p o r t p r o v i d e s a s y n o p s i s o f t h e c u r r e n t r e t a i l e r s a n d r e s t a u r a n t s w i t h i n t h e S u m m i t F a i r D e v e l o p m e n t. P a g e 3 4 o f t h i s r e p o r t a l s o p r o v i d e s a c o m p l e t e l i s t i n g o f a l l S u m m i t F a i r A r e a b u s i n e s s e s a n d r e t a i l e r s. I n r e v i e w o f t h e t e n a n t - p r o v i d e d l e a s e s u m m a r y w e f o u n d c e r t a i n L e a s e Summit Fair Shopping Center Owner/Tenant Listing Retailers Open Prior to December Unit Tenant Sq Ft Retailer Classification Open Date A JC Penney Department Store Opened 07/25/09 M Macy's Department Store Opened 07/30/09 B103 Eyemasters 3826 Service Opened 05/15/10 C101 I.O. Metro 9821 Home Furnishings Opened 02/18/10 C109 Jos. A. Bank 4010 Apparel Opened 05/07/10 C113 McAllister's Deli 3605 Restaurant & Specialty Foods Opened 04/15/10 C114 Fajita Willys 2345 Restaurant & Specialty Foods Opened 07/01/10-01/25/11 C115 Complete Nutrition 1755 Health & Beauty Opened 04/12/10 D101 B2 Burger 3058 Restaurant & Specialty Foods Opened 04/22/10-12/31/10 D103 Sakura Sushi 3435 Restaurant & Specialty Foods Opened 02/13/10 D105 Coldwater Creek 5502 Apparel Opened 04/27/10 D115 Finish Line 3886 Shoes & Athletic Apparel Opened 08/11/10 D123 Beauty Brands 6630 Health & Beauty Opened 03/19/10 I DSW Shoes & Athletic Apparel Opened 04/08/10 J103 Dress Barn 7996 Apparel Opened 10/01/10 K101 Charming Charlie's Apparel Opened 07/05/10 L105 Jake's 1598 Specialty Shops Opened 10/01/09 L109 Escapist 1080 Shoes & Athletic Apparel Opened 07/05/10 L121 Buckle 5000 Apparel Opened 10/06/10 N107 Yankee Candle 1402 Specialty Shops Opened 09/30/10 N113 Gennaio 1150 Apparel Opened 09/11/09 N113 Gennaio Expansion 729 Apparel Opened 10/01/10 N115 Heavenly Oils 1068 Specialty Shops Opened 10/30/10 PAD 4 Noodles & Company 2500 Restaurant & Specialty Foods Opened 07/19/10 PAD 4 Americas Best 3163 Service Opened 03/28/10 PAD 4 T-Mobile 1395 Service Opened 10/29/10 PAD 9A Olive Garden 7441 Restaurant & Specialty Foods Opened 08/23/10 PAD 9B Red Lobster 7126 Restaurant & Specialty Foods Opened 08/16/10 Open Post December and Committed/Future Tenants: J101 Mall Office 1605 Other Opened 01/03/11 O101 Massage Heights 2348 Health & Beauty Projected Opening 05/01/11 PAD 3 Jimmy Johns 1422 Restaurant & Specialty Foods Projected Opening 06/01/11 PAD 3 Sleep One 3500 Home Furnishings Projected Opening 06/01/11 L101 Yogurtini 1600 Restaurant & Specialty Foods Opened 01/08/11 L103 Silver Craze 1183 Specialty Shops Opened 02/14/11 L107 Small Cake's 1038 Restaurant & Specialty Foods Opened 02/17/011 N105 Glo Nail Lounge 1538 Specialty Shops Projected Opening 03/22/11 N111 Micah's 1397 Apparel Opened 02/07/11 D121 Topsy's 1562 Restaurant & Specialty Foods Projected Opening 07/01/11 B101 Available 6226 Projected Opening 07/01/11 C103 Available 1207 Projected Opening 08/01/11 C104 Available 2301 Projected Opening 08/01/11 (Neg Lease) C105 Available 4052 Projected Opening 08/01/11 C107 Available 1914 Projected Opening 08/01/11 C111 Available 1027 Projected Opening 08/01/11 D106 Available 5109 Projected Opening 04/01/12 (Neg LOI) D109 Available 8627 Projected Opening 04/01/12 D117 Available 1484 Projected Opening 08/01/11 D119 Available 2293 Projected Opening 09/01/11 K103 Available 4765 Projected Opening 08/01/11 L111 Available 1266 Projected Opening 11/01/11 (Neg Lease) L113 Available 3212 Projected Opening 08/01/11 (Neg Lease) L115 Available 1448 Projected Opening 08/01/11 L117 Available 5000 Projected Opening 08/01/11 (Neg LOI) N101 Available 3999 Projected Opening 08/01/11 (Neg LOI) N103 Available 2467 Projected Opening 09/01/11 N109 Available 1478 Projected Opening 08/01/11 O103 Available 2020 Projected Opening 08/01/11 O105 Available 4023 Projected Opening 05/01/11 (Neg Lease) P a g e 1 0

79 Summit Fair Development Overview T e r m i n a t i o n P r o v i s i o n s i n t h e v a r i o u s a g r e e m e n t s. M o s t o f t h e T e n a n t l e a s e a g r e e m e n t s a r e b a s e d o n g r o s s s a l e s p e r s q u a r e f o o t a s a m i n i m u m t h r e s h o l d f o r b u s i n e s s o p e r a t i o n s. I f t h e t e n a n t s d o n o t r e a c h t h e s a l e s a m o u n t s o r o c c u p a n c y r a t e s t h e e x i s t i n g l e a s e h o l d e r s h a v e o p t i o n s t o t e r m i n a t e t h e l e a s e a g r e e m e n t s. P a g e 1 1

80 K K Local Market Analysis L i f e s t y l e C e n t e r C o n c e p t s S u m m i t F a i r S h o p p i n g C e n t e r h a s a n u p s c a l e i m a g e c a t e r i n g t o a n u p p e r - i n c o m e c l i e n t e l e a n d d e s i g n e d a s a d e s t i n a t i o n f o r s h o p p i n g d i n i n g a n d e n t e r t a i n m e n t. T h e I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g C e n t e r s ( I C S C ) r e p o r t s t h a t s h o p p e r s w h o v i s i t l i f e s t y l e c e n t e r s a r e m o r e a f f l u e n t a n d h a v e a m e d i a n h o u s e h o l d i n c o m e o f a p p r o x i m a t e l y A d d i t i o n a l l y I C S C r e s e a r c h i n d i c a t e s t h a t c o n s u m e r s t e n d t o v i s i t l i f e s t y l e c e n t e r s m o r e o f t e n t h a n t h e y v i s i t e n c l o s e d l o c a l m a l l s : a n a v e r a g e o f 3. 8 t i m e s a m o n t h v e r s u s 2. 5 t i m e s a m o n t h f o r e n c l o s e d m a l l s. O u r r e s e a r c h f o u n d t h a t l i f e s t y l e c e n t e r s h a v e t h e f o l l o w i n g c h a r a c t e r i s t i c s : T y p i c a l l y l o c a t e d n e a r a f f l u e n t r e s i d e n t i a l n e i g h b o r h o o d a r e a s A n u p s c a l e o r i e n t a t i o n s q. f t. t o s q. f t. o f g r o s s l e a s a b l e a r e a O p e n a i r f o r m a t a n d a t l e a s t s q. f t. o f n a t i o n a l s p e c i a l t y c h a i n s t o r e s. T h e c o m m o n g o a l o f a l i f e s t y l e c e n t e r i s t o c r e a t e a n e i g h b o r h o o d f e e l t h a t m a k e s t h e r e t a i l s h o p p e r c o m f o r t a b l e a n d h a p p y w i t h a M a i n S t r e e t f e e l w i t h s t o r e f r o n t s w i t h b r i c k f a c a d e s c o n t a i n e r g a r d e n s p a r k b e n c h e s a n d s i d e w a l k s. S o m e o f t h e p r i m a r y t r a d e c o m p e t i t o r s f o r S u m m i t F a i r i n c l u d e : T o w n C e n t e r P l a z a i s a s q u a r e f o o t u p s c a l e r e t a i l c e n t e r l o c a t e d o n Town Center Plaza: t h S t r e e t b e t w e e n R o e A v e n u e a n d N a l l A v e n u e w i t h i n a f f l u e n t s o u t h e r n J o h n s o n C o u n t y a n s a s. T r a d e a r e a d e m o g r a p h i c s a r e i m p r e s s i v e w i t h p e o p l e r e s i d i n g i n a m i l e r a d i u s. H o u s e h o l d i n c o m e l e v e l s a r e i n a 3 - m i l e r a d i u s ; i n a 5 - m i l e r a d i u s ; a n d i n a m i l e r a d i u s. T o w n C e n t e r P l a z a h o u s e s n e a r l y 9 0 n a t i o n a l a n d s p e c i a l t y s h o p s 1 5 r e s t a u r a n t s a n d t h e A M C 2 0 T h e a t r e s. A n c h o r t e n a n t s i n c l u d e M a c y s D i c k s S p o r t i n g G o o d s B a r n e s & N o b l e D e a n & D e l u c a P o t t e r y B a r n A M C T h e a t r e s G a p / G a p B o d y R e s t o r a t i o n H a r d w a r e a n d W i l l i a m S o n o m a. Corbin Park: C o r b i n P a r k i s a 1. 1 m i l l i o n s q u a r e f o o t o p e n - a i r r e t a i l v i l l a g e w i t h s o m e o f t h e a r e a s m o s t u n i q u e r e t a i l a n d d i n i n g e s t a b l i s h m e n t s l o c a t e d a t t h S t r e e t a n d M e t c a l f A v e n u e i n s o u t h O v e r l a n d P a r k a n s a s. T r a d e a r e a d e m o g r a p h i c s s h o w a v e r a g e h o u s e h o l d i n c o m e i n a 1 - m i l e r a d i u s t o b e ; i n a 3 - m i l e r a d i u s t o b e a n d i n a 5 - m i l e r a d i u s t o b e T h e a v e r a g e a g e g r o u p i n t h i s a r e a i s m i d 3 0 s. L o c a l m e d i a r e p o r t s i n d i c a t e d t h a t a d d i t i o n a l i m p r o v e m e n t s t o t h e C o r b i n P a r k S h o p p i n g C e n t e r d e v e l o p m e n t a r e c u r r e n t l y o n h o l d p e n d i n g f i n a n c i a l r e s t r u c t u r i n g i s s u e s. P a g e 1 2

81 K K K K Local Market Analysis Country Club Plaza: T h e C o u n t r y C l u b P l a z a i n a n s a s C i t y M i s s o u r i i s 1 m i l l i o n s q u a r e f e e t o f o p e n K r e t a i l. T h e d e v e l o p m e n t i n c l u d e s h o m e t o w n f a v o r i t e s l i k e H a l l s P l a z a t o i n t e r n a t i o n a l l y k n o w n b r a n d s l i k e B u r b e r r y. O v e r s t o r e s f i l l t h e a r c h i t e c t u r a l l y c l a s s i c 1 4 b l o c k d i s t r i c t a n d c r e a t e t h e e x p e r i e n c e t h a t m a k e s T h e P l a z a o n e o f t h e M i d w e s t ' s p r e m i e r d e s t i n a t i o n s. Hawthorne Plaza: H a w t h o r n e P l a z a o n t h e c o r n e r o f t h S t r e e t a n d R o e i n O v e r l a n d P a r k a n s a s K c o m p r i s e s s q u a r e f e e t o f u p s c a l e s h o p s. T h e c e n t e r i s h o m e t o s o m e o f t h e r e g i o n s m o s t i n t r i g u i n g s p e c i a l t y s t o r e s o n e - o f - a - k i n d b o u t i q u e s a n d c u t t i n g - e d g e r e s t a u r a n t s d e m o g r a p h i c s s h o w i n a 5 - m i l e r a d i u s a p o p u l a t i o n o f w i t h a n e s t i m a t e d p r o j e c t i o n o f i n t h e y e a r A v e r a g e h o u s e h o l d i n c o m e s h o w s i n w i t h i n a 1 - m i l e r a d i u s t o b e ; i n a 3 - m i l e r a d i u s t o b e a n d a 5 - m i l e r a d i u s t o b e Park Place: P a r k P l a c e i s a m u l t i p h a s e d d e v e l o p m e n t w h i c h u p o n c o m p l e t i o n w i l l o f f e r m o r e t h a n 1. 0 m i l l i o n s q u a r e f e e t o f s h o p p i n g a n d d i n i n g. T h e c e n t e r i s l o c a t e d a t t h e c o r n e r o f t h S t r e e t a n d N a l l A v e n u e a d j a c e n t t o T o w n C e n t e r P l a z a A M C T h e a t r e l o c a t e d i n L e a w o o d a n s a s. T h e f i r s t p h a s e o f t h e P a r k P l a c e d e v e l o p m e n t h a s b e e n c o m p l e t e d a n d t h e d e v e l o p e r s h a v e b r o k e n g r o u n d o n P h a s e I I. O n e N i n e t e e n i s a l i f e s t y l e c e n t e r d e v e l o p e d a n d m a n a g e d b y R E D D e v e l o p m e n t. One Nineteen: O n e N i n e t e e n i s t h e h o m e t o t h e a n s a s C i t y a r e a ' s f i r s t a n d o n l y C r a t e a n d B a r r e l s t o r e. T h i s s q u a r e - f o o t o p e n - a i r l i f e s t y l e c e n t e r f e a t u r e s h i g h - e n d w o m e n ' s a n d m e n ' s a p p a r e l h o m e f u r n i s h i n g s s p e c i a l t y s h o p s a n d u p s c a l e r e s t a u r a n t s. L o c a t e d i n t h e h e a r t o f J o h n s o n C o u n t y t h i s i n t i m a t e S h o p p i n g C e n t e r o f f e r s u n i q u e r e t a i l e r s n e w t o t h e a n s a s a n s a s C i t y m a r k e t. T h e S h o p p i n g C e n t e r ' s d i s t i n c t a r c h i t e c t u r e c o m p l e m e n t s t h e u p s c a l e s u r r o u n d i n g n e i g h b o r h o o d s. O n e N i n e t e e n i s l o c a t e d l e s s t h a n o n e m i l e f r o m t h e S p r i n t W o r l d H e a d q u a r t e r s c a m p u s w h i c h h a s m o r e t h a n e m p l o y e e s. Oak Park Mall: W h i l e n o t c l a s s i f i e d a s a L i f e s t y l e C e n t e r R E D D e v e l o p m e n t a l s o i n d i c a t e d t h a t O a k P a r k M a l l i s a t r a d e c o m p e t i t o r. O a k P a r k M a l l i s a 1. 6 m i l l i o n s q u a r e f o o t t w o - l e v e l m a l l w i t h a v a r i e t y o f s t o r e s r a n g i n g f r o m t h e f i n e s t i n f a s h i o n s t o r e l a x e d d i n i n g. A n c h o r s t o r e s i n c l u d e : J C P e n n e y N o r d s t r o m M a c y s D i l l a r d s ( T w o S t o r e s ) B a r n e s a n d N o b l e a n d F o r e v e r X X I t r a d e a r e a p o p u l a t i o n s h o w s A v e r a g e h o u s e h o l d i n c o m e f o r t h e t r a d e a r e a i s P a g e 1 3

82 K K K Local Market Analysis Independence Center: A r e g i o n a l t r a d e c o m p e t i t o r i s t h e e n c l o s e d I n d e p e n d e n c e C e n t e r m a l l l o c a t e d a t I a n d M T h e m i l l i o n s q. f t. m a l l f a c i l i t y i n c l u d e s a v a r i e t y o f s h o p s a n c h o r e d b y D i l l a r d ' s M a c y ' s a n d S e a r s a n d w i t h m o r e t h a n s t o r e s i n c l u d i n g B a t h & B o d y W o r k s T h e C h i l d r e n ' s P l a c e T h e D i s n e y S t o r e G a p H e l z b e r g D i a m o n d s L i m i t e d T o o O l d N a v y a n d V i c t o r i a ' s S e c r e t. E a t e r i e s i n c l u d e A p p l e b e e ' s D a i r y Q u e e n a n d P a n d a E x p r e s s. T h e f o l l o w i n g m a p s h o w s t h e r e l a t i v e l o c a t i o n s o f t h e r e t a i l t r a d e c o m p e t i t i o n t o t h e c u r r e n t S u m m i t F a i r D e v e l o p m e n t. A p p e n d i x I I I o f t h e r e p o r t p r o v i d e s a s u m m a r y o f t h e R e t a i l S h o p p i n g C e n t e r s / A r e a s ( i n s i z e ). a n s a s C i t y B u s i n e s s J o u r n a l s A n n u a l M a j o r T r a d e A r e a A n a l y s i s R E D D e v e l o p m e n t a n d c o n f i d e n t i a l i n f o r m a t i o n o b t a i n e d f r o m e x i s t i n g r e t a i l e r s r e f l e c t s a p p r o x i m a t e l y a 1 5 m i n u t e d r i v e t i m e t r a d e a r e a. A s s h o w n b e l o w t h i s a r e a i n c l u d e s s o u t h e r n J a c k s o n C o u n t y i n c l u d i n g m o s t o f t h e c i t i e s o f L e e s S u m m i t a n d B e l t o n a n d e a s t e r n J o h n s o n C o u n t y a n s a s b o u n d a r i e s o f L e a w o o d a n d O v e r l a n d P a r k A t t h e s a m e t i m e t h e r e t a i l m i x f r o m S u m m i t F a i r i n c l u d e s m a n y h i g h p r o f i l e b o u t i q u e t y p e o f a p p a r e l a n d p e r s o n a l a n s a s. P a g e 1 4

83 K K Local Market Analysis s e r v i c e e s t a b l i s h m e n t s a n d t h e t y p i c a l t r a d e a r e a f o r t h e s e t y p e s o f m a r k e t s i s p r o b a b l y w i t h i n t h e 5 t o 1 0 m i n u t e d r i v e t i m e r a d i u s. S u m m i t F a i r D r i v e T i m e s M i l e R a d i u s T h e C i t y o f L e e s S u m m i t a n d S u m m i t F a i r D e v e l o p m e n t l o c a t e d i n e a s t e r n J a c k s o n C o u n t y M i s s o u r i a r e w e l l c o n n e c t e d t o t h e r e g i o n a l f r e e w a y s y s t e m h a v e l o c a l a c c e s s t o r a i l t r a n s p o r t a t i o n a n d r e g i o n a l a c c e s s t o a i r t r a n s p o r t a t i o n. U S 7 1 i s a c o n v e n i e n t n o r t h - s o u t h c o r r i d o r t h a t c o n n e c t s t h e C i t y o f G r a n d v i e w t o a n s a s C i t y a n d t h e r e s t o f t h e m e t r o a r e a. I r u n s n o r t h e a s t t h r o u g h L e e s S u m m i t a n d i n t e r s e c t s I a m a j o r e a s t - w e s t r o u t e t h a t c o n n e c t s t h e c i t i e s o f I n d e p e n d e n c e B l u e S p r i n g s G r a i n V a l l e y a n d O a k G r o v e w i t h a n s a s C i t y t o t h e w e s t a n d S t. L o u i s t o t h e e a s t. U S 5 0 c o m e s f r o m t h e s o u t h e a s t p a r t o f t h e c o u n t y a n d r u n s t h r o u g h L e e s S u m m i t a n d R a y t o w n b e f o r e c o n n e c t i n g w i t h I T o g e t h e r t h e s e f r e e w a y s c r e a t e a l o o p a r o u n d t h e m e t r o a r e a t h a t P a g e 1 5

84 K K K K K K K Local Market Analysis p r o v i d e s e x c e l l e n t a c c e s s i b i l i t y t o a l l o f t h e c o m m u n i t i e s o f E a s t e r n J a c k s o n C o u n t y a n d t o r e g i o n a l i n t e r s t a t e r o u t e s. A r e a D e m o g r a p h i c C h a r a c t e r i s t i c s I n r e v i e w o f t h e t r a d e a r e a ( 1 5 m i n u t e d r i v e t i m e r a d i u s ) a n d p r i m a r y m a r k e t f o c u s ( 5 t o 1 0 m i n u t e d r i v e t i m e r a d i u s ) w e f o u n d t h e f o l l o w i n g e c o n o m i c a n d d e m o g r a p h i c c h a r a c t e r i s t i c s t o b e c o n s i s t e n t w i t h t h e d e v e l o p m e n t s t r a t e g y f o r l i f e s t y l e c e n t e r s. M a j o r t r a d e a r e a c h a r a c t e r i s t i c s i n c l u d e : A p p r o x i m a t e l y p e o p l e c u r r e n t l y r e s i d e i n t h e 1 5 m i n u t e d r i v e t i m e t r a d e a r e a w i t h h o u s e h o l d s w i t h i n t h e t r a d e a r e a. T h e a v e r a g e t r a d e a r e a h o u s e h o l d i s c o m p o s e d o f p e r s o n s c o m p a r e d t o i n t h e M e t r o p o l i t a n A r e a a n d i n t h e U. S. a n s a s C i t y T h e m e d i a n a g e o f t h e t r a d e a r e a s p o p u l a t i o n i s y e a r s v s i n t h e a n d i n t h e U. S. a n s a s C i t y M e t r o p o l i t a n A r e a A p p r o x i m a t e l y 5 3 p e r c e n t o f t h e t r a d e a r e a s r e s i d e n t s a r e i n t h e H o u s e h o l d & F a m i l y F o r m a t i o n ( a g e s 2 5 t o 4 4 ) a n d P e a k E a r n i n g ( a g e s 4 5 t o 6 4 ) v s p e r c e n t i n t h e p e r c e n t i n t h e U. S. a n s a s C i t y M e t r o p o l i t a n A r e a a n d T h e a v e r a g e h o u s e h o l d i n c o m e o f t h e p o p u l a t i o n i n t h e t r a d e a r e a i s a p p r o x i m a t e l y w h i c h i s p e r c e n t o f t h e a n s a s C i t y M e t r o p o l i t a n A r e a a v e r a g e a n d p e r c e n t o f t h e U. S. a v e r a g e. W i t h i n a 5 m i n u t e d r i v e t i m e r a d i u s o f t h e S u m m i t F a i r T I F t h e a v e r a g e h o u s e h o l d i n c o m e i s p e r c e n t o f t h e a n s a s C i t y M e t r o p o l i t a n A r e a a n d p e r c e n t o f t h e U. S. a v e r a g e. A p p r o x i m a t e l y p e r c e n t o f t h e t r a d e a r e a ' s h o u s e h o l d s h a v e g r o s s a n n u a l i n c o m e s g r e a t e r t h a n v s p e r c e n t i n t h e a n s a s C i t y M e t r o p o l i t a n A r e a a n d p e r c e n t i n t h e U. S. T h e f o l l o w i n g c h a r t p r o v i d e s a s u m m a r y o f t h e d e m o g r a p h i c c h a r a c t e r i s t i c s o f t h e d e v e l o p m e n t a r e a c o m p a r e d t o t h e a n s a s C i t y M S A a n d t h e o v e r a l l U n i t e d S t a t e s. P a g e 1 6

85 Local Market Analysis C i t y o f L e e ' s S u m m i t - S u m m i t F a i r T r a d e A r e a D e m o g r a p h i c C o m p a r i s o n S o u r c e : C l a r i t a s M a r k e t p l a c e a n d U S C e n s u s 5 M i n u t e ( s ) 1 0 M i n u t e ( s ) 1 5 M i n u t e ( 2 ) K a n s a s C i t y U n i t e d D r i v e T i m e D r i v e T i m e D r i v e T i m e M e t r o S t a t e s P o p u l a t i o n C e n s u s P r o j e c t i o n G r o w t h t o % % % H o u s e h o l d s C e n s u s P r o j e c t i o n G r o w t h t o % % % A v e r a g e H o u s e h o l d S i z e E t h n i c i t y W h i t e % % % % % B l a c k 3. 2 % % % % % A s i a n o r P a c i f i c I s l a n d e r 1. 0 % 1. 4 % 1. 4 % 2. 4 % 4. 6 % A m e r i c a n I n d i a n o r A l a s k a N a t i v e 0. 6 % 0. 4 % 0. 4 % 0. 5 % 0. 9 % O t h e r R a c e 3. 1 % 3. 9 % 4. 3 % 6. 5 % 9. 6 % A g e o f P o p u l a t i o n A g e 0 t o % % % % % A g e 2 5 t o % % % % % A g e 4 5 t o % % % % % A g e 6 5 t o % 9. 7 % % 9. 9 % % O v e r % 2. 2 % 2. 3 % 1. 8 % 1. 9 % M e d i a n A g e P e r C a p i t a I n c o m e P e r C a p i t a l I n c o m e P e r c e n t o f K a n s a s C i t y M S A % % % % % P e r c e n t o f U S % % % % % A v e r a g e H o u s e h o l d I n c o m e P e r c e n t o f K a n s a s C i t y M S A % % % % % P e r c e n t o f U S % % % % % M e d i a n H o u s e h o l d I n c o m e P e r c e n t o f K a n s a s C i t y M S A % % % % % P e r c e n t o f U S % % % % % H o u s e h o l d I n c o m e H o u s e h o l d I n c o m e L e s s t h a n % % % % % H o u s e h o l d I n c o m e t o % % % % % H o u s e h o l d I n c o m e t o % % % % % H o u s e h o l d I n c o m e M o r e t h a n % 7. 9 % 5. 8 % 8. 1 % 8. 0 % T h e f o l l o w i n g t a b l e p r o v i d e s a n o v e r v i e w o f t h e S p e n d i n g P o t e n t i a l I n d e x f o r t h e S u m m i t F a i r T I F a r e a. A s p r e p a r e d b y E S R I t h e S p e n d i n g P o t e n t i a l I n d e x r e p r e s e n t s t h e a m o u n t s p e n t i n t h e a r e a r e l a t i v e t o a n a t i o n a l i n d e x o f T h i s a n a l y s i s r e f l e c t s s t r o n g l o c a l c o n s u m e r s p e n d i n g. P a g e 1 7

86 Local Market Analysis P a g e 1 8

87 K Local Market Analysis L o c a l E c o n o m i c T r e n d s I n f o r m a t i o n o b t a i n e d f r o m t h e E S R I M a r k e t P l a c e h i g h l i g h t s l o c a l e c o n o m i c t r e n d s i n k e y d e m o g r a p h i c c h a r a c t e r i s t i c s w i t h i n t h e t r a d e a r e a. T h e l o c a l f o r e c a s t s r e f l e c t p o s i t i v e g r o w t h i n v a r i o u s i n c o m e s h o u s i n g a n d o t h e r p o p u l a t i o n t r e n d f a c t o r s o v e r t h e n e x t f i v e y e a r s. M a j o r e c o n o m i c t r e n d s i n c l u d e ( b a s e d o n 1 5 m i n u t e d r i v e t i m e r a d i u s ) : Household Income of Market Trade Area: T h e c u r r e n t ( ) m e d i a n h o u s e h o l d i n c o m e i s i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a c o m p a r e d t o f o r t h e a n s a s C i t y M e t r o p o l i t a n A r e a. M e d i a n h o u s e h o l d i n c o m e i s p r o j e c t e d t o b e i n f i v e y e a r s. I n m e d i a n h o u s e h o l d i n c o m e w a s T h e c u r r e n t a v e r a g e h o u s e h o l d i n c o m e i s i n t h i s 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a c o m p a r e d t o f o r a l l U. S. h o u s e h o l d s. A v e r a g e h o u s e h o l d i n c o m e i s p r o j e c t e d t o b e i n f i v e y e a r s. I n a v e r a g e h o u s e h o l d i n c o m e w a s T h e p e r c a p i t a i n c o m e i s i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a c o m p a r e d t o t h e U. S. p e r c a p i t a i n c o m e o f T h e p e r c a p i t a i n c o m e i s p r o j e c t e d t o b e i n f i v e y e a r s. I n t h e p e r c a p i t a i n c o m e w a s Population I n t h e i d e n t i f i e d 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a t h e p o p u l a t i o n i s e s t i m a t e d a t a n d w i t h i n t h e 5 m i n u t e d r i v e t i m e m a r k e t a r e a. I n t h e C e n s u s c o u n t i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a w a s T h e f i v e - y e a r p r o j e c t i o n f o r t h e p o p u l a t i o n i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a i s r e p r e s e n t i n g a c h a n g e o f 2 p e r c e n t f r o m t o C u r r e n t l y t h e p o p u l a t i o n i s p e r c e n t m a l e a n d p e r c e n t f e m a l e. Households T h e h o u s e h o l d c o u n t i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a h a s c h a n g e d f r o m i n t o i n a c h a n g e o f 8 p e r c e n t. T h e f i v e - y e a r p r o j e c t i o n o f h o u s e h o l d s i s a c h a n g e o f 1 1 p e r c e n t f r o m t h e c u r r e n t y e a r t o t a l. A v e r a g e h o u s e h o l d s i z e i s c u r r e n t l y c o m p a r e d t o i n t h e y e a r T h e n u m b e r o f f a m i l i e s i n t h e c u r r e n t y e a r i s i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a. P a g e 1 9

88 Local Market Analysis H o w e v e r t h e C i t y o f L e e s S u m m i t h a s i n d i c a t e d t h a t t h e o p p o r t u n i t y f o r s u b s t a n t i a l n e w r e s i d e n t i a l d e v e l o p m e n t i s l i m i t e d b a s e d o n t h e c u r r e n t l a n d u s e a n d c i t y b o u n d a r i e s. T h e m e d i a n h o m e v a l u e i n t h e 1 5 m i n u t e d r i v e t i m e m a r k e t a r e a i s c o m p a r e d t o a m e d i a n h o m e v a l u e o f f o r t h e U. S. I n f i v e y e a r s m e d i a n h o m e v a l u e i s p r o j e c t e d t o c h a n g e b y 1 4 p e r c e n t t o P a g e 2 0

89 K Retail Sales Tax & PILOT Projections T r e n d s i n R e t a i l S a l e s F o r e c a s t s O u r a n a l y s i s i s b a s e d o n n a t i o n a l a n d r e g i o n a l t r e n d s i n l o c a l r e t a i l s a l e s. T h e N a t i o n a l R e t a i l F e d e r a t i o n ( N R F ) r e p o r t e d i n e a r l y D e c e m b e r t h a t N o v e m b e r r e t a i l i n d u s t r y s a l e s ( w h i c h e x c l u d e a u t o m o b i l e s g a s s t a t i o n s a n d r e s t a u r a n t s ) i n c r e a s e d 0. 8 p e r c e n t s e a s o n a l l y a d j u s t e d o v e r O c t o b e r a n d 6. 8 p e r c e n t u n a d j u s t e d o v e r l a s t y e a r. T h e s t a r t t o t h e h o l i d a y s e a s o n h a s s u r p a s s e d a l l e x p e c t a t i o n s s a i d N R F P r e s i d e n t a n d C E O M a t t h e w S h a y. W h i l e e m p l o y m e n t d a t a i s s t i l l a c o n c e r n w e a r e s t a r t i n g t o s e e i m p r o v e m e n t i n o t h e r e c o n o m i c i n d i c a t o r s t h a t s u p p o r t a n i n c r e a s e t o o u r f o r e c a s t. I n o r d e r t o s u s t a i n t h i s m o m e n t u m f o r r e t a i l e r s a n d t h e U. S. e c o n o m y t h e r e m u s t b e a r e n e w e d f o c u s o n j o b s a s w e e n t e r t h e n e w y e a r. T h e U. S. C o m m e r c e D e p a r t m e n t r e p o r t e d t h a t N o v e m b e r r e t a i l s a l e s ( w h i c h i n c l u d e n o n - g e n e r a l m e r c h a n d i s e c a t e g o r i e s s u c h a s a u t o s g a s o l i n e s t a t i o n s a n d r e s t a u r a n t s ) i n c r e a s e d 0. 8 p e r c e n t s e a s o n a l l y a d j u s t e d o v e r O c t o b e r a n d 9. 2 p e r c e n t u n a d j u s t e d y e a r - o v e r - y e a r. C o n s u m e r s h a v e n o t b e e n s u f f e r i n g f r o m a l a c k o f s p e n d i n g p o w e r t h e y v e j u s t b e e n m i s s i n g t h e c o n f i d e n c e t o u s e i t s a i d N R F C h i e f E c o n o m i s t J a c k l e i n h e n z. W i t h n o t i c e a b l e i m p r o v e m e n t i n k e y e c o n o m i c i n d i c a t o r s c o m b i n e d w i t h g r e a t d e a l s o n m e r c h a n d i s e c o n s u m e r s h a v e c e r t a i n l y s h o w n t h e y s h o u l d n t b e c o u n t e d o u t t h i s h o l i d a y s e a s o n. S o l i d g a i n s a c r o s s t h e b o a r d i n d i c a t e s o m e i n c r e a s e d d e m a n d a s c o n s u m e r s s t o c k e d u p o n i t e m s s u c h a s a p p a r e l a c c e s s o r i e s a n d b o o k s a n d m u s i c. S a l e s a t c l o t h i n g a n d c l o t h i n g a c c e s s o r y s t o r e s i n c r e a s e d 2. 7 p e r c e n t s e a s o n a l l y a d j u s t e d o v e r l a s t m o n t h a n d a s t r o n g 9. 6 p e r c e n t u n a d j u s t e d y e a r - o v e r - y e a r. S p o r t i n g g o o d s h o b b y b o o k a n d m u s i c s t o r e s s a l e s i n c r e a s e d 2. 3 p e r c e n t s e a s o n a l l y a d j u s t e d m o n t h - t o - m o n t h a n d p e r c e n t u n a d j u s t e d y e a r - o v e r - y e a r. H e a l t h a n d p e r s o n a l c a r e s t o r e s s a l e s i n c r e a s e d 0. 9 p e r c e n t s e a s o n a l l y a d j u s t e d o v e r l a s t O c t o b e r a n d 7. 3 p e r c e n t u n a d j u s t e d o v e r l a s t y e a r. G e n e r a l m e r c h a n d i s e s t o r e s s a l e s i n c r e a s e d 1. 3 p e r c e n t s e a s o n a l l y a d j u s t e d o v e r l a s t m o n t h a n d 4. 2 p e r c e n t u n a d j u s t e d y e a r - o v e r - y e a r. E c o n o m i c f o r e c a s t s a r e s h o w i n g t h a t a r e c o v e r y f r o m t h e c u r r e n t r e c e s s i o n w i l l t a k e f r o m o n e t o t w o y e a r s. T h e f o r e c a s t f o r t h i s r e t a i l s a l e s t a x s t u d y a s s u m e s a n n u a l C P I i n f l a t i o n a r y i n c r e a s e s a n d i n c r e a s e d r e t a i l s a l e s f r o m n e w s p e n d i n g w i t h i n t h e p r i m a r y a n d s e c o n d a r y t r a d e a r e a s. T h e m o d e l a l s o i n c l u d e s a n n u a l i n c r e a s e s i n r e t a i l s a l e s d u e t o p r o j e c t e d g r o w t h i n n e w h o u s e h o l d s a n d r e l a t e d n e w s p e n d i n g. T h e m o d e l i n c l u d e s a n n u a l h o u s e h o l d g r o w t h w i t h i n b o t h t h e p r i m a r y a n d s e c o n d a r y t r a d e m a r k e t s. P a g e 2 1

90 Retail Sales Tax & PILOT Projections O u r r e t a i l s a l e s a n d p r o p e r t y t a x p r o j e c t i o n s a r e b a s e d o n t h e f o l l o w i n g s o u r c e s a n d a s s u m p t i o n s : A c t u a l C i t y C o u n t y a n d C I D E A T s a n d P I L O T r e m i t t a n c e s s i n c e t h e i n c e p t i o n o f t h e T I F S a l e s t e n a n t v o l u m e r e p o r t s p r o v i d e d b y t h e D e v e l o p e r R e t a i l s a l e s c o m p a r i s o n s o f s i m i l a r l i f e s t y l e c e n t e r s p r o v i d e d b y t h e D e v e l o p e r T r e n d d a t a f r o m t h e U r b a n L a n d I n s t i t u t e a n d t h e I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g C e n t e r s L o c a l a n d n a t i o n a l e c o n o m i c f o r e c a s t s r e f l e c t i n g S t r o n g a v e r a g e a n d m e d i a n h o u s e h o l d i n c o m e t h r e s h o l d s w i t h i n t h e p r i m a r y a n d s e c o n d a r y t r a d e a r e a s P o s i t i v e t r e n d s i n g r o w t h o f h o u s e h o l d i n c o m e a n d p o p u l a t i o n g r o w t h A b i l i t y o f t h e p r i m a r y a n d s e c o n d a r y t r a d e a r e a s t o a b s o r b a d d i t i o n a l r e s i d e n t i a l d e v e l o p m e n t s I n c r e a s e d c o n f i d e n c e i n c o n s u m e r s p e n d i n g S p e n d i n g P o t e n t i a l I n d e x ( S P I ) h o u s e h o l d b a s e a n d t h e t r a d e a r e a s p e n d i n g f o r p r o d u c t s o r s e r v i c e s r e l a t i v e t o n a t i o n a l a v e r a g e s A l v a r e z & M a r s a l p r o p r i e t a r y m o d e l i n g a n d a n a l y s i s a n d r e t a i l s a l e s c o m p a r i s o n s S u m m i t F a i r D e v e l o p m e n t R e t a i l S a l e s A n a l y s i s A s s h o w n o n t h e f o l l o w i n g p a g e t h e S u m m i t F a i r D e v e l o p m e n t A r e a c o n s i s t s o f t h e T I F D e v e l o p m e n t D i s t r i c t ( o u t l i n e d i n r e d ) a n d t h e C o m m u n i t y I m p r o v e m e n t D i s t r i c t ( o u t l i n e d i n t u r q u o i s e ). T h e b a s i c d i f f e r e n c e i s t h a t t h e e x i s t i n g a n d f u t u r e b u s i n e s s i n t h e a r e a t o t h e s o u t h o f C h i p m a n R o a d a r e n o t i n c l u d e d i n t h e C I D. T h e T I F i n c l u d e s a l l p a r c e l s a n d r e t a i l e r s i n t h e o u t l i n e d a r e a s. T h e e s t a b l i s h e d e x i s t i n g r e t a i l e r s l o c a t e d i n t h e a r e a s o u t h o f C h i p m a n R o a d i n c l u d e : B o b S i g h t F o r d ( o p e r a t i n g s i n c e 1 / ) P r e s t o ( o p e r a t i n g s i n c e 1 1 / ) O r i g i n a l P i z z a o f M i s s o u r i ( o p e r a t i n g s i n c e 8 / ) S i k i J a p a n e s e R e s t a u r a n t ( o p e r a t i n g s i n c e 1 0 / ) W e n d y s ( O p e r a t i n g s i n c e 6 / ) P a g e 2 2

91 Retail Sales Tax & PILOT Projections P a g e 2 3

92 Retail Sales Tax & PILOT Projections A s s h o w n b e l o w b a s e d o n i n f o r m a t i o n p r o v i d e d b y R E D D e v e l o p m e n t a n d t h e C i t y w e f o u n d t h a t f o r t h e T I F d e v e l o p m e n t a r e a r e p o r t e d a c t u a l s a l e s o f m i l l i o n i n c l u d i n g m i l l i o n d i r e c t l y r e l a t e d t o t h e n e w l y o p e n e d S u m m i t F a i r r e t a i l c e n t e r. T h e t a b l e t o t h e r i g h t l i s t s t h e T I F e l i g i b l e s a l e s t a x e s f o r t h e S u m m i t F a i r D e v e l o p m e n t A r e a. D u r i n g a n d t h r e e o f t h e c u r r e n t c i t y s a l e s t a x e s a r e s c h e d u l e d t o s u n s e t. T h e C i t y o f L e e s S u m m i t M i s s o u r i h a s a h i s t o r y o f r e - v o t i n g t h e t a x e s i n p l a c e b e f o r e t h e y s u n s e t a s e v i d e n c e d b y t h e C o u n t y D r u g E n f o r c e m e n t T a x b e i n g e x t e n d e d t h i s p a s t N o v e m b e r e l e c t i o n. F o r t h e p u r p o s e s o f o u r p r o j e c t i o n s w e a r e a s s u m i n g a l l s c h e d u l e d s u n s e t s w i l l o c c u r. T h e T I F p r o v i d e s t h a t 5 0 p e r c e n t o f t h e S u m m i t F a i r D e v e l o p m e n t A r e a A p p l i e d T I F S a l e s T a x R a t e s P r e - S u n s e t P o s t u n s e t P o s t u n s e t C o u n t y % % % C i t y % % % S u b t o t a l % % % C I D T o t a l % % % T O T A L % % % N o t e s : % C o u n t y D r u g E n f o r c e m e n t T a x e x p i r e s M a r c h % P a r k s T a x e x p i r e s M a r c h % C a p i t a l I m p r o v e m e n t T a x e x p i r e s M a r c h i n c r e m e n t a l s a l e s t a x g e n e r a t e d f r o m t h e E c o n o m i c A c t i v i t y T a x R e v e n u e s ( E A T S ) c a n b e u s e d t o f i n a n c e T I F n e e d s. W e p r o j e c t r e t a i l s a l e s t o i n c r e a s e i n t o m i l l i o n w i t h i n t h e e n t i r e T I F d e v e l o p m e n t a r e a a n d m i l l i o n f o r s a l e s w i t h i n t h e C I D a r e a o n l y. W e b e l i e v e t h a t t h e s t r e e t a n d f a c i l i t y c o n s t r u c t i o n w i t h i n t h e d e v e l o p m e n t a r e a d u r i n g w a s a c a u s e f o r l o w e r t h a n e x p e c t e d r e t a i l s a l e s i n a d d i t i o n t o e x i s t i n g r e t a i l s a l e s r e b o u n d i n g b a c k t o l e v e l s c o n s i s t e n t w i t h a n n u a l S u m m i t F a i r D e v e l o p m e n t R e t a i l S a l e s - T I F A r e a ( J a n u a r y t o D e c e m b e r S a l e s ) C u r r e n t S a l e s B y B u s i n e s s T y p e S a l e s % o f T o t a l S a l e s % o f T o t a l D e p a r t m e n t S t o r e s % % H e a l t h & B e a u t y % % R e s t a u r a n t s & S p e c i a l t y F o o d s % % S e r v i c e s % % S h o e s & A t h l e t i c A p p a r e l % % S p e c i a l t y S h o p s & H o m e F u r n i s h i n g s % % W o m e n ' s & M e n ' s A p p a r e l % % A u t o m o t i v e & C o n v e n i e n c e S t o r e % % O t h e r O f f s i t e R e s t a u r a n t s % % T O T A L % % S u m m i t F a i r D e v e l o p m e n t R e t a i l S a l e s - C I D A r e a O n l y ( J a n u a r y t o D e c e m b e r S a l e s ) C u r r e n t S a l e s B y B u s i n e s s T y p e S a l e s % o f T o t a l S a l e s % o f T o t a l D e p a r t m e n t S t o r e s % % H e a l t h & B e a u t y % % R e s t a u r a n t s & S p e c i a l t y F o o d s % % S e r v i c e s % % S h o e s & A t h l e t i c A p p a r e l % % S p e c i a l t y S h o p s & H o m e F u r n i s h i n g s % % W o m e n ' s & M e n ' s A p p a r e l % % T O T A L % % s a l e s a v e r a g e s a s r e p o r t e d i n D o l l a r s a n d C e n t s. F o r b a s e d o n r e t a i l s a l e s i n f o r m a t i o n f r o m R E D D e v e l o p m e n t a n d t h e C i t y w e f o u n d t h a t d i s p r o p o r t i o n a t e a m o u n t o f r e p o r t e d s a l e s f o r r e t a i l e r s o p e n a s o f D e c e m b e r w e r e f r o m t w o c u r r e n t t e n a n t s. T h i s r e f l e c t s s t r o n g d e p e n d e n c e o f t h e r e t a i l P a g e 2 4

93 Retail Sales Tax & PILOT Projections s a l e s v o l u m e f r o m t w o p r i m a r y t e n a n t s a n d b e c a u s e t o t a l s a l e s a r e d i s p r o p o r t i o n a t e l y w e i g h t e d a c t u a l r e t a i l s a l e s t a x p r o j e c t i o n s a r e h e a v i l y w e i g h t e d t o w a r d t h e c o n t i n u e d e x i s t e n c e a n d g r o w t h o f t h e s e t w o k e y r e t a i l e r s. I n o u r T I F a n d C I D s a l e s p r o j e c t i o n m o d e l s w e h a v e n e t t e d t h e p r o j e c t e d s a l e s t a x c o l l e c t i o n s b y s t a t e a n d l o c a l r e m i t t a n c e a n d p r o c e s s i n g f e e s a s s h o w n i n t h e t a b l e t o t h e r i g h t : A s s h o w n o n t h e f o l l o w i n g p a g e w e p r o j e c t t h a t r e t a i l s a l e s S u m m i t F a i r D e v e l o p m e n t A r e a C o l l e c t i o n & R e m i t t a n c e P r o c e s s i n g F e e s T I F C I D S t a t e o f M i s s o u r i 2. 0 % 2. 0 % R e t a i l e r s H o l d b a c k 2. 0 % 2. 0 % C i t y o f L e e s ' S u m m i t * 1. 0 % 1. 0 % c o u l d i n c r e a s e t o m i l l i o n b y b a s e d o n g r o w t h. W e p r o j e c t t h a t b y t h e C I D c o u l d g e n e r a t e m i l l i o n i n r e t a i l s a l e s b a s e d o n g r o w t h. A s n o t e d p r e v i o u s l y r e t a i l s a l e s r e f l e c t t h e f i r s t y e a r o f o p e r a t i o n a n d p a r t i a l o p e n i n g o f t h e m a j o r i t y o f S u m m i t F a i r D e v e l o p m e n t r e t a i l s t o r e s. T h e m a j o r d e p a r t m e n t s t o r e a n c h o r s o p e n e d i n A u g u s t C o n s t r u c t i o n o f t h e r e m a i n i n g o p e n c e n t e r r e t a i l s p a c e a n d t h e a r e a d e v e l o p m e n t w a s u n d e r c o n s t r u c t i o n i n T h e o n s i t e c o n s t r u c t i o n w a s s u b s t a n t i a l l y c o m p l e t e i n e a r l y ; h o w e v e r t h e o n g o i n g c o n s t r u c t i o n m a y h a v e c a u s e d t h e m a j o r r e t a i l e r s t o u n d e r p e r f o r m a g a i n s t i n d u s t r y a v e r a g e s. I n b o t h t h e T I F a n d C I D r e t a i l s a l e s p r o j e c t i o n s o u r r e s e a r c h s u p p o r t s t h a t t h e c u r r e n t d i s t r e s s e d e c o n o m i c c l i m a t e a n d t h e o n g o i n g c o n s t r u c t i o n a t S u m m i t F a i r D e v e l o p m e n t l e d t o b e l o w i n d u s t r y r e t a i l s a l e s p e r f o r m a n c e. A d d i t i o n a l l y t h e p r o j e c t e d e c o n o m i c g r o w t h o f n e w h o u s e h o l d s w i t h i n t h e t a r g e t m a r k e t a r e a o v e r t h e n e x t s e v e r a l y e a r s s u p p o r t s t h e a s s u m p t i o n f o r i n c r e a s e d r e t a i l s a l e s a b o v e t h e s a l e s p e r f o r m a n c e. P a g e 2 5

94 R j ore R d e c tn me l op v D e w rs D CI d h t t r tmo o t & os Sh e R s e tr pa R s e nc e n D CI t s or e r Y a e n R D e CI d c R e E AT TIF d c Retail Sales Tax & PILOT Projections P r o j e c t i o n o f R e t a i l S a l e s f o r S u m m i t F a i r D e v e l o p m e n t A r e a f o r t h e P e r i o d o f t o l O ny i d B ou n r e s a TIF n hi it il e Rta e i n g E s x h Ote / i v e A u S l ae s TIF T OTAL t s ta uran or St e i C o nv e e i Mi s our it S mm u ' s fl e o City Cl a s il ta M a b S l ae s y il ta te j P r o e A ra e F i r a it S u mm i d B ou n r e s a a TIF n B o i n rs il e Rta e T OTAL & ' W o m ns e & lty i ca S p e & t s ta uran & h lt H e a tn me D e S l ae s l pa r e A ' s M e n hi gs i F rn s u H o m e l pa r e A i c hl At e i cs rv e S e d os F lty i ca S p e ty B au e St T OTAL S l ae s il ta te j P r o e 2030 o 201t T OTAL S l ae s il ta ' s te j P r o e 2030 o 201t T OTAL P a g e 2 6

95 Retail Sales Tax & PILOT Projections W e a l s o r e v i e w e d t h e e s t i m a t e d r e t a i l s a l e s p e r s q u a r e f e e t o f l e a s e d s p a c e c o m p a r e d t o i n d u s t r y s t a n d a r d s. D o l l a r s & C e n t s r e p o r t s t h e m e d i a n s a l e s v o l u m e p e r s q u a r e f o o t w a s f o r s u b u r b a n o p e n a i r S h o p p i n g C e n t e r s ( b a s e d o n o p e n a i r S h o p p i n g C e n t e r s g r e a t e r t h a n s q. f t. o r m o r e ) w i t h a l o w d e c i l e o f a n d a h i g h d e c i l e o f p e r s q. f t. G L A. C i t y o f L e e ' s S u m m i t S u m m i t F a i r S h o p p i n g C e n t e r P r o j e c t e d R e t a i l S a l e s S a l e s P e r S q u a r e F o o t B y M a j o r C l a s s w i t h i n t h e T I F a n d C I D B o u n d a r y A r e a s R e t a i l e r s A t S u m m i t F a i r S h o p p i n g C e n t e r D e p a r t m e n t H e a h & R e s t a u r a n t s S h o e s & S p e c i a y W o m e n ' s & T O T A L C I D S t o r e s B e a u t y & S p e c i a l t y F o o d s S e r v i c e s t h l e t i c A p p a r e l & H o m e F u r n i s h i n g s M e n ' s A p p a r e l r e a O n l y lt lt I n r e v i e w o f t h e r e t a i l s a l e s w i t h i n t h e n e w l y d e v e l o p e d S u m m i t F a i r S h o p p i n g C e n t e r ( p r i m a r i l y l i f e - s t y l e c e n t e r s t o r e s ) b a s e d o n t h e y e a r t o d a t e a c t u a l s a l e s a n d R E D D e v e l o p m e n t p r o v i d e d p r o j e c t i o n s w e e s t i m a t e a v e r a g e s a l e s p e r s q u a r e f o o t o f i n i n c r e a s i n g t o i n a n d t o b y T h e p r o j e c t e d s a l e s p e r l e a s a b l e g r o s s a r e a f o r t h e p e r i o d o f t o a r e s l i g h t l y l o w e r t h a n t h e i n d u s t r y a v e r a g e d u e t o t h e p l a n n e d p h a s e d o p e n i n g s o f t h e n e w r e t a i l e r s. T h e r e t a i l s a l e s f r o m t h e S u m m i t F a i r S h o p p i n g C e n t e r a r e p r o j e c t e d b e t w e e n t h e l o w a n d t h e m e d i u m d e c i l e o f s i m i l a r U. S. o p e n a i r l i f e s t y l e c e n t e r s. W e a t t r i b u t e s o m e o f t h e b e l o w i n d u s t r y s a l e s f r o m t h e p a r t i a l y e a r r e p o r t i n g p e r i o d a n d d u e t o t h e c o n s t r u c t i o n i n t h e a r e a o f t h e S h o p p i n g C e n t e r u n t i l m i d O u r p r o j e c t i o n s r e f l e c t t h e S h o p p i n g C e n t e r m e e t i n g o r e x c e e d i n g t h e c u r r e n t i n d u s t r y m e d i a n s a l e s p e r s q u a r e f o o t v a l u e s a f t e r d u e t o t h e f a c i l i t y b e i n g f u l l y o c c u p i e d a n d t h e p r o j e c t e d e c o n o m i c g r o w t h o f n e w h o u s e h o l d s w i t h i n t h e t a r g e t m a r k e t a r e a. P a g e 2 7

96 Retail Sales Tax & PILOT Projections C i t y o f L e e s S u m m i t F a i r D e v e l o p m e n t S a l e s T a x C o l l e c t i o n s E a c h m o n t h c i t i e s i n M i s s o u r i w h i c h i m p o s e a r e t a i l e r s s a l e s t a x r e c e i v e d e t a i l e d r e p o r t s a n d d i s t r i b u t i o n o f a c t u a l s a l e s t a x r e c e i p t s. T h e d i s t r i b u t i o n s a r e g e n e r a l l y b a s e d o n a t w o m o n t h l a g i n r e p o r t i n g. M i s s o u r i s t a t u t e p r o v i d e s t h a t r e t a i l e r s r e m i t s a l e s t a x c o l l e c t i o n s o n t h e 2 0 t h d a y f r o m t h e c l o s e o f t h e p r i o r m o n t h t o t h e S t a t e e x c e p t i n q u a r t e r e n d i n g m o n t h s w h e n t h e d e a d l i n e i s e x t e n d e d t o t h e 3 0 t h. T h e C i t y r e c e i v e s i t s d i s t r i b u t i o n f r o m t h e M i s s o u r i D e p a r t m e n t o f R e v e n u e o n o r b e f o r e t h e 1 0 t h o f e v e r y m o n t h a n d t h e n r e c e i v e s a d e t a i l e d r e p o r t o f r e t a i l e r s a n d t h e i r r e m i t t a n c e o n o r a b o u t t h e 1 5 t h o f e a c h m o n t h. T h e a m o u n t s r e m i t t e d t o t h e C i t y a r e n e t o f t h e S t a t e t w o p e r c e n t a d m i n i s t r a t i v e f e e f o r c o l l e c t i n g a n d d i s t r i b u t i n g t h e r e t a i l s a l e s t a x. S t a t e l a w a l s o a l l o w s r e t a i l t a x p a y e r s w h o p r o m p t l y p a y t h e i r s a l e s t a x e s t o r e t a i n t w o p e r c e n t o f t h e a m o u n t o f t a x e s o w e d. T h e b e l o w t a b l e r e p r e s e n t s a c t u a l n e t E A T s a n d P I L O T s r e c e i p t s f o r t h e T I F a n d C I D d e v e l o p m e n t. S i n c e t h e T I F i n c e p t i o n t h e C i t y h a s c o l l e c t e d ( n e t o f a n y r e t a i l e r s h o l d b a c k a n d s t a t e a n d l o c a l p r o c e s s i n g f e e s ) t h r o u g h A p r i l a t o t a l o f i n E A T s a n d i n P I L O T s. T h e C i t y h a s a d j u s t e d t h e t o t a l r e v e n u e s b y f o r t h e J a c k s o n C o u n t y P I L O T p r o c e s s i n g f e e r e i m b u r s a b l e e x p e n s e s i n t e r e s t a n d T I F d e p o s i t s. T h e t o t a l a v a i l a b l e r e v e n u e s f o r t h e D e v e l o p m e n t A r e a t o t a l a s o f M a y City of Lee's Summit Missouri Summit Fair Development Area Monthly Summary of Receipts - As of May Sales Receipt General Transportation Capital Improvement Park Development City Total Actual County Actual CID PILOTs Totals Year Month Month 1.000% 0.500% 0.500% 0.250% 2.250% Collected Collected Collected Actual nov jan dec feb jan mar feb apr mar may apr jun may jul jun aug jul sep aug oct sep nov oct dec Total nov jan dec feb jan mar feb apr mar may apr jun may jul jun aug jul sep aug oct sep nov oct dec Total nov jan dec feb jan mar feb apr Total PILOT Collection Fee (22733) Reimbursable Expenses (277965) Interest & TIF Deposit School District Portion (214555) Total Adjustments (495209) Total TOTAL City County and CID Sales Tax Receipts to Date: TOTAl PILOT Receipts to Date: P a g e 2 8

97 Retail Sales Tax & PILOT Projections S u m m i t F a i r D e v e l o p m e n t T I F S a l e s T a x P r o j e c t i o n s S U M M I T F A I R B a s e Y e a r C a l c u l a t i o n B A S E Y E A R S u m m i t F a i r T A X T Y P E C I T Y E S C I S T D A T E M T T o t a l 1 % T a x : % C i t y T a x e s : C Y B A S E Y E A R C I T Y E A T S : % C Y B A S E Y E A R C N T Y E A T S : % T o t a l S a l e s : T O T A L C I T Y & C O U N T Y E A T S : % * D a t a o b t a i n e d f r o m C i t y ' s F Y 0 6 a n d F Y 0 7 T o t a l D i s t r i b u t i o n R e p o r t s O u r m o d e l i s b a s e d o n i n d u s t r y a v e r a g e s f o r s i m i l a r p r o p e r t i e s a n d a c t u a l t e n a n t r e t a i l s a l e s i n f o r m a t i o n p r o v i d e d b y R E D D e v e l o p m e n t a n d t h e C i t y. T h e p r o j e c t i o n s r e f l e c t t h e g r a d u a l i n c r e a s e i n r e t a i l s a l e s a s S u m m i t F a i r g a i n s i n m a r k e t s h a r e a n d i n s y n e r g y f r o m i n c r e a s e d r e t a i l e s t a b l i s h m e n t s b e i n g o p e n. O u r r e v e n u e p r o j e c t i o n s r e f l e c t t h e n e t t i n g o f t h e b a s e y e a r E A T s s a l e s t a x e s f o r t h e c o m b i n e d C i t y a n d C o u n t y a t 5 0 p e r c e n t o f t h e t o t a l a m o u n t o r a n a n n u a l b a s e r e d u c t i o n o f a s c e r t i f i e d b y t h e C i t y o f L e e s S u m m i t. C i t y o f L e e ' s S u m m i t M i s s o u r i u m m i t F a i r D e v e l o p m e n t A r e a I F E A T s S a l e s T a x P r o j e c t i o n s T I F Y e a r Y e a r P r o j e c t e d S a l e s R e t a i l % G r o w t h i n S a l e s E A T S R a t e T a x S a l e s T a x P r o j e c t i o n s L e s s : B a s e S a l e s T a x N e t I n c r e m e n t a l S a l e s T a x R e v e i p t s 1 t o % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) % % ( ) T O T A L ( ) O T A L P R O J E C T E D T I F E A T s S a l e s T a x C o l l e c t i o n t s t o P a g e 2 9

98 Retail Sales Tax & PILOT Projections A s s h o w n o n t h e p r e v i o u s p a g e f r o m t o A p r i l w e p r o j e c t t h e S u m m i t F a i r D e v e l o p m e n t A r e a t o g e n e r a t e m i l l i o n i n r e t a i l s a l e s t a x o f w h i c h m i l l i o n w o u l d b e a v a i l a b l e f o r d e b t s e r v i c e f o r t h e S u m m i t D e v e l o p m e n t A r e a f i n a n c i n g. T h i s i n c l u d e s i n a c t u a l n e t c o l l e c t i o n s f o r t h e p e r i o d o f t h r o u g h e a r l y F e b r u a r y a n d m i l l i o n i n n e t s a l e s t a x f o r t h e p e r i o d o f t o O u r p r o j e c t i o n s f o r t h e p e r i o d o f t o t o t a l m i l l i o n o f w h i c h m i l l i o n w o u l d b e a v a i l a b l e f o r t h e S u m m i t F a i r D e v e l o p m e n t A r e a f i n a n c i n g. T h e s e p r o j e c t i o n s a r e b a s e d o n t h e r e t a i l s a l e s f o r e a c h b u s i n e s s c l a s s a s s h o w n o n p a g e 2 6. S u m m i t F a i r D e v e l o p m e n t C I D S a l e s T a x P r o j e c t i o n s T h e t a b l e t o t h e r i g h t p r o v i d e s o u r e s t i m a t e f o r t h e o n e h a l f o f t h e 1. 0 p e r c e n t C o m m u n i t y I m p r o v e m e n t D i s t r i c t ( C I D ) s a l e s t a x r a t e t h a t i s c a p t u r e d b y t h e T I F. T h e C I D s a l e s t a x p r o j e c t i o n s e x c l u d e t h e e x i s t i n g b u s i n e s s e s s o u t h o f C h i p m a n R o a d d u e t o b o u n d a r i e s b e i n g d i f f e r e n t f r o m t h e T I F. T h e s e p r o j e c t i o n s a r e b a s e d o n t h e r e t a i l s a l e s f o r e c a s t s l o c a t e d o n p a g e 2 6 o f t h i s r e p o r t. T h e C I D S a l e s T a x p r o j e c t i o n s r e f l e c t a t o t a l o f m i l l i o n i n s a l e s t a x r e v e n u e s t o b e a v a i l a b l e f o r d e b t s e r v i c e o f w h i c h m i l l i o n i s p r o j e c t e d t o b e g e n e r a t e d d u r i n g t h e p e r i o d o f t o C i t y o f L e e ' s S u m m i t M i s s o u r i S u m m i t F a i r D e v e l o p m e n t A r e a C I D S a l e s T a x P r o j e c t i o n s P r o j e c t e d R e t a i l G r o w t h i n S a l e s T a x C I D Y e a r Y e a r S a l e s S a l e s C I D T a x R a t e P r o j e c t i o n s 1 t o % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % T O T A L T O T A L P R O J E C T E D C I D S a l e s T a x C o l l e c t i o n s t o P a g e 3 0

99 Retail Sales Tax & PILOT Projections P a y m e n t i n L i e u o f T a x P r o j e c t i o n s W e w e r e a l s o r e q u e s t e d t o p r o j e c t t h e e s t i m a t e d P a y m e n t i n L i e u o f T a x e s f o r t h e S u m m i t F a i r D e v e l o p m e n t D i s t r i c t. P a y m e n t i n L i e u o f T a x e s m e a n s t h o s e p a y m e n t s i n l i e u o f t a x e s a t t r i b u t a b l e t o t h e i n c r e a s e i n t h e c u r r e n t e q u a l i z e d a s s e s s e d v a l u a t i o n o f a l l t a x a b l e l o t s b l o c k s t r a c t s a n d p a r c e l s o f r e a l p r o p e r t y i n t h e S u m m i t F a i r D e v e l o p m e n t A r e a o v e r a n d a b o v e t h e c e r t i f i e d t o t a l i n i t i a l e q u a l i z e d a s s e s s e d v a l u a t i o n o f t h e r e a l p r o p e r t y i n t h e T I F d e v e l o p m e n t. T h e t a b l e t o t h e r i g h t p r o v i d e s t h e c u r r e n t y e a r ( ) t a x r a t e s. T a x e s f o r w e r e d u e t o t h e C o u n t y o n o r b e f o r e D e c e m b e r T h e s e r a t e s w e r e u s e d i n t h e c a l c u l a t i o n o f t h e P I L O T f o r S u m m i t F a i r. W e a s s u m e d t h a t t h e m i l l l e v i e s f o r t h e v a r i o u s j u r i s d i c t i o n s w i l l r e m a i n c o n s t a n t f o r t h e r e m a i n i n g y e a r s o f t h e T I F o r t h r o u g h T h e P I L O T p r o j e c t i o n s a r e b a s e d o n t h e c u r r e n t t e n a n t m i x o f e x i s t i n g f a c i l i t i e s. A n y a d d e d d e v e l o p m e n t w i t h i n t h e T I F S u m m i t F a i r D e v e l o p m e n t D i s t r i c t T a x R a t e s C i t y o f L e e ' s S u m m i t H a n d i c a p W o r k s h o p M e t r o p o l i t a n C o m m u n i t y C o l l e g e L i b r a r y M e n t a l H e a l t h R - 7 S c h o o l J a c k s o n C o u n t y T O T A L * M i s s o u r i B l i n d i s. 0 3 a n d d o e s n o t a p p l y t o t h e T I F. d e v e l o p m e n t w o u l d b e i n c r e m e n t a l l y a v a i l a b l e t o f i n a n c e t h e d e b t. O u r p r o j e c t i o n s a r e i n c l u s i v e o f t h e b a s e p r o p e r t y a s s e s s e d v a l u a t i o n o f m i l l i o n a s c e r t i f i e d b y t h e C o u n t y. B a s e d o n i n f o r m a t i o n p r o v i d e d b y t h e C i t y t h e r e h a s b e e n a d e c l i n e i n t h e o v e r a l l a s s e s s e d v a l u a t i o n a n d r e l a t e d p r o p e r t y t a x e s t h r o u g h o u t t h e C i t y. T h e C i t y s p r o j e c t i o n s a r e t h a t t h e d e v e l o p m e n t w i l l s e e m i n i m a l g r o w t h o v e r t h e n e x t s e v e r a l y e a r s. I n r e v i e w o f C i t y b u d g e t p r o j e c t i o n s c u r r e n t c o n s t r u c t i o n a n d i n d u s t r y r e s e a r c h w e e s t i m a t e a n i n c r e a s e i n c u r r e n t a s s e s s e d v a l u a t i o n o f m i l l i o n t o m i l l i o n i n d u e t o t h e c o n s t r u c t i o n o f b u i l d i n g s c o m p l e t e d i n / a n d f u t u r e b i - a n n u a l i n c r e a s e b e g i n n i n g i n o f o n e p e r c e n t. A d d i t i o n a l l y w e h a v e n e t t e d o u t t h e J a c k s o n C o u n t y c o l l e c t i o n w i t h h o l d i n g o f 1. 6 p e r c e n t. A s s h o w n o n t h e f o l l o w i n g p a g e o u r p r o j e c t i o n s r e f l e c t n e t P I L O T r e c e i p t s a v a i l a b l e f o r d e b t s e r v i c e. A s s h o w n o n t h e f o l l o w i n g p a g e w e p r o j e c t n e t P I L O T r e v e n u e s f o r t h e S u m m i t F a i r D e v e l o p m e n t t o t o t a l m i l l i o n w h i c h i n c l u d e s t h e i n a c t u a l c u r r e n t a n d p r i o r y e a r P I L O T p a y m e n t s t o t h e C i t y t h r o u g h l a t e M a r c h F o r t h e a s s e s s m e n t / p a y m e n t y e a r p r o j e c t i o n p e r i o d o f t o w e e s t i m a t e n e t P I L O T p a y m e n t s o f m i l l i o n. T h i s i s b a s e d o n t h e c u r r e n t t a x r a t e o f w i t h t h e 1. 6 p e r c e n t c o l l e c t i o n r a t e P a g e 3 1

100 Retail Sales Tax & PILOT Projections a n n u a l w i t h h o l d i n g a m o u n t f r o m J a c k s o n C o u n t y. T h e n e t i n c r e m e n t a l P I L O T p r o j e c t i o n s r e f l e c t t h e i n c r e m e n t a l i n c r e a s e i n a s s e s s e d v a l u a t i o n o v e r t h e b a s e a s s e s s e d v a l u a t i o n o f Summit Fair Development Area Projected Payment in Lieu of Taxes (PILOT) Based on August 2010 Build Out Assumptions Assessment Year City Collection Year Projected Assessed Valuation 2007 Base Assessed Vaulation Incremental Assessed Valuation Net * Incremental PILOT Annual Growth Rate % % % % % % % % % % % % % % % % % % % TOTAL TOTAL Assessment Year Projected 2011 to * Based on tax rate of * Net of Jackson County collection rate of 1.6% R e d e v e l o p m e n t A r e a A & B T h e R e d e v e l o p m e n t A r e a c o n t a i n s t w o s u b a r e a s : ( a ) R e d e v e l o p m e n t A r e a A c o m p r i s e d o f t h a t p o r t i o n o f t h e S h o p p i n g C e n t e r w h i c h h a s b e e n c o n s t r u c t e d a s w e l l a s o t h e r r e t a i l e r s a n d c o n t a i n i n g e n t i t i e s o u t s i d e t h e S h o p p i n g C e n t e r b u t w i t h i n t h e R e d e v e l o p m e n t A r e a i n c l u d i n g W e n d y s a n d t w o o t h e r r e s t a u r a n t s a c o n v e n i e n c e s t o r e a n a u t o m o b i l e d e a l e r s h i p a n d a c h u r c h ; ( b ) R e d e v e l o p m e n t A r e a B c o m p r i s e d o f t h a t p o r t i o n o f t h e S h o p p i n g C e n t e r w h i c h h a s n o t y e t b e e n c o n s t r u c t e d a s w e l l a s s e v e r a l o u t l o t s. P a g e 3 2

101 Retail Sales Tax & PILOT Projections T h i s s t u d y s p r o j e c t i o n s a r e b a s e d o n t h e e x p e c t a t i o n t h a t u p o n c o m p l e t i o n o f c o n s t r u c t i o n o f R e d e v e l o p m e n t A r e a B a n d t h e o c c u p a n c y b y r e t a i l e r s e i t h e r A d d i t i o n a l B o n d s w i l l b e i s s u e d o r S e r i e s B B o n d s w i l l b e i s s u e d. I f S e r i e s B B o n d s a r e i s s u e d s u c h S e r i e s B B o n d s w o u l d b e p a i d s o l e l y f r o m P a y m e n t s i n L i e u o f T a x e s a n d E c o n o m i c A c t i v i t y T a x R e v e n u e s d e r i v e d f r o m b u s i n e s s e s l o c a t e d i n R e d e v e l o p m e n t A r e a B R e v e n u e s a n d o n a s u b o r d i n a t e b a s i s f r o m A r e a A R e v e n u e s. U n t i l s u c h t i m e i f e v e r a s S e r i e s B B o n d s a r e i s s u e d a n y P a y m e n t s i n L i e u o f T a x e s a n d a n y E c o n o m i c A c t i v i t y T a x A r e a B R e v e n u e s d e r i v e d f r o m R e d e v e l o p m e n t A r e a B w i l l b e a v a i l a b l e f o r t h e p a y m e n t o f t h e B o n d s. U p o n t h e i s s u a n c e o f a n y S e r i e s B B o n d s o n l y P a y m e n t s i n L i e u o f T a x e s a n d E c o n o m i c A c t i v i t y T a x A r e a A R e v e n u e s t h e r e a f t e r r e c e i v e d f r o m b u s i n e s s e s o p e r a t i n g w i t h i n R e d e v e l o p m e n t A r e a A w i l l b e a v a i l a b l e f o r t h e r e p a y m e n t o f t h e B o n d s u n t i l n o S e r i e s B B o n d s a r e O u t s t a n d i n g. O w n e r s s h o u l d e x p e c t t h a t t h e B o n d s w i l l b e p a i d o n l y f r o m P a y m e n t s i n L i e u o f T a x e s a n d E c o n o m i c A c t i v i t y T a x A r e a A R e v e n u e s r e c e i v e d f r o m b u s i n e s s e s o p e r a t i n g w i t h i n R e d e v e l o p m e n t A r e a A. T h e P r o j e c t i o n s r e f l e c t o n l y A r e a A r e v e n u e s w h i c h a r e d e f i n e d t o i n c l u d e a l l A r e a E A T s a n d t h e f i r s t p e r y e a r o f P I L O T S f r o m A r e a B. T h e M a p b e l o w o u t l i n e s t h e t w o s u b - a r e a s. M a p o f R e d e v e l o p m e n t A r e a s A a n d B P a g e 3 3

102 Retail Sales Tax & PILOT Projections T h e t a b l e b e l o w p r o v i d e s a l i s t i n g o f e x i s t i n g r e t a i l e r s w i t h i n t h e S u m m i t F a i r D e v e l o p m e n t A r e a a n d t h e l o c a t i o n o f t h e b u s i n e s s w i t h i n t h e t w o R e d e v e l o p m e n t A r e a s ( A r e a A a n d A r e a B ) a s g r a p h i c a l l y s h o w n a n d d e p i c t s w h i c h e s t a b l i s h m e n t s a r e w i t h i n t h e d e s i g n a t e d C I D b o u n d a r i e s. Designation of Summit Fair Development Area Retailers in Redevelopment Area A and B Area A Area B Within CID Within CID Unit Tenant Sq Ft Status Yes/No Unit Tenant Sq Ft Status Yes/No A JC Penney Opened 07/25/09 Yes E101 Available 5554 Projected Opening 04/01/12 Yes M Macy's Opened 07/30/09 Yes E103 Available Projected Opening 04/01/12 Yes B101 Available 6226 Projected Opening 07/01/11 Yes E105 Available 7280 Projected Opening 04/01/12 Yes B103 Eyemasters 3826 Opened 05/15/10 Yes E111 Available 1495 Projected Opening 04/01/12 Yes C101 I.O. Metro 9821 Opened 02/18/10 Yes E115 Available 4991 Projected Opening 04/01/12 Yes C103 Available 1207 Projected Opening 08/01/11 Yes E117 Available 3040 Projected Opening 04/01/12 Yes C104 Available 2301 Projected Opening 08/01/11 (Neg Lease) Yes E119 Available 3040 Projected Opening 04/01/12 Yes C105 Available 4052 Projected Opening 08/01/11 Yes E121 Available 3108 Projected Opening 04/01/12 Yes C107 Available 1914 Projected Opening 08/01/11 Yes PAD 2 Available 6500 Projected Opening 11/01/11 (Under Construction) Yes C109 Jos. A. Bank 4010 Opened 05/07/10 Yes PAD 5 Available 8550 Projected Opening 11/01/12 Yes C111 Available 1027 Projected Opening 08/01/11 Yes PAD 6 Available 4500 Projected Opening 11/01/12 Yes C113 McAllister's Deli 3605 Opened 04/15/10 Yes PAD 7 Available 7490 Projected Opening 03/01/12 Yes C114 Fajita Willys 2345 Opened 07/01/10-01/25/11 Yes PAD 8 Available 4500 Projected Opening 03/01/13 Yes C115 Complete Nutrition 1755 Opened 04/12/10 Yes Potential Pad Available 4500 Projected Opening 08/01/13 Yes D101 B2 Burger 3058 Opened 04/22/10-12/31/10 Yes D103 Sakura Sushi 3435 Opened 02/13/10 Yes D105 Coldwater Creek 5502 Opened 04/27/10 Yes D106 Available 5109 Projected Opening 04/01/12 (Neg LOI) Yes D109 Available 8627 Projected Opening 04/01/12 Yes D115 Finish Line 3886 Opened 08/11/10 Yes D117 Available 1484 Projected Opening 08/01/11 Yes D119 Available 2293 Projected Opening 09/01/11 Yes D121 Topsy's 1562 Projected Opening 07/01/11 Yes D123 Beauty Brands 6630 Opened 03/19/10 Yes I DSW Opened 04/08/10 Yes J101 Mall Office 1605 Opened 01/03/11 Yes J103 Dress Barn 7996 Opened 10/01/10 Yes K101 Charming Charlie's Opened 07/05/10 Yes K103 Available 4765 Projected Opening 08/01/11 Yes L101 Yogurtini 1600 Opened 01/08/11 Yes L103 Silver Craze 1183 Opened 02/14/11 Yes L105 Jake's 1598 Opened 10/01/09 Yes L107 Small Cake's 1038 Opened 02/17/011 Yes L109 Escapist 1080 Opened 07/05/10 Yes L111 Available 1266 Projected Opening 11/01/11 (Neg Lease) Yes L113 Available 3212 Projected Opening 08/01/11 (Neg Lease) Yes L115 Available 1448 Projected Opening 08/01/11 Yes L117 Available 5000 Projected Opening 08/01/11 (Neg LOI) Yes L121 Buckle 5000 Opened 10/06/10 Yes N101 Available 3999 Projected Opening 08/01/11 (Neg LOI) Yes N103 Available 2467 Projected Opening 09/01/11 Yes N105 Glo Nail Lounge 1538 Projected Opening 03/22/11 Yes N107 Yankee Candle 1402 Opened 09/30/10 Yes N109 Available 1478 Projected Opening 08/01/11 Yes N111 Micah's 1397 Opened 02/07/11 Yes N113 Gennaio 1150 Opened 09/11/09 Yes N113 Gennaio Expansion 729 Opened 10/01/10 Yes N115 Heavenly Oils 1068 Opened 10/30/10 Yes O101 Massage Heights 2348 Projected Opening 05/01/11 Yes O103 Available 2020 Projected Opening 08/01/11 Yes O105 Available 4023 Projected Opening 05/01/11 (Neg Lease) Yes PAD 3 Jimmy Johns 1422 Projected Opening 06/01/11 Yes PAD 3 Sleep One 3500 Projected Opening 06/01/11 Yes PAD 4 Noodles & Company 2500 Opened 07/19/10 Yes PAD 4 Americas Best 3163 Opened 03/28/10 Yes PAD 4 T-Mobile 1395 Opened 10/29/10 Yes PAD 9A Olive Garden 7441 Opened 08/23/10 Yes PAD 9B Red Lobster 7126 Opened 08/16/10 Yes Q Wendy's 1546 Open No R Original Pizza 1680 Open No S Presto Convenience Store 2543 Open No T Bob Sight Ford Open No U Siki Japanese Steakhouse and Sushi Bar 4033 Open No V Summit Park Plaza: 1981 Open No State Farm Open No Free Presbyterian Church Open No Vacant Space Unoccupied No Summit Dental Center Open No Summit Park Animal Hospital Open No Farmers Insurance Open No Hair Graphics Etc. Open No Luse-Hair Open No W Vacant Office Warehouse 7719 Unoccupied No P a g e 3 4

103 Retail Sales Tax & PILOT Projections T o t a l P r o j e c t e d S u m m i t F a i r D e v e l o p m e n t A r e a R e v e n u e s : B a s e d o n k n o w n r e t a i l e r s a n d c u r r e n t a s s e s s e d v a l u a t i o n a m o u n t s w e p r o j e c t t h e c o m b i n e d r e v e n u e s a v a i l a b l e f o r t h e p o t e n t i a l d e b t s e r v i c e i n c l u d i n g p r i o r y e a r a c t u a l r e c e i p t s w i l l t o t a l m i l l i o n o f w h i c h m i l l i o n i s f o r t h e p e r i o d o f t o T h i s a m o u n t i s n e t o f t h e b a s e y e a r E A T s s a l e s t a x a n d b a s e P I L O T a s s e s s e d v a l u a t i o n a m o u n t s. C i t y o f L e e ' s S u m m i t. M i s s o u r i S u m m i t F a i r D e v e l o p m e n t A r e a P r o j e c t e d R e v e n u e s - A l l S o u r c e s s s e s s m e n t & N E T T I F E A T ' s Projected Revenues Available for Debt Service N e t T I F C I D N e t P I L O T S a l e s Y e a r S a l e s T a x S a l e s T a x R e v e n u e R e v e n u e s O T A L R e v e n u e s O T A L P r o j e c t e d t o O T A L N e t P a g e 3 5

104 Appendix I - Tenant Overview J C P e n n e y A d d r e s s : N W B l u e P k w y O c c u p a n c y : J u l y S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : J C P e n n e y i s o n e o f A m e r i c a ' s l e a d i n g r e t a i l e r s o p e r a t i n g t h r o u g h o u t t h e U n i t e d S t a t e s a n d P u e r t o R i c o. W e h a v e t h e l a r g e s t a p p a r e l a n d h o m e f u r n i s h i n g s i t e s o n t h e I n t e r n e t j c p. c o m a n d t h e n a t i o n ' s l a r g e s t g e n e r a l m e r c h a n d i s e c a t a l o g b u s i n e s s. A c r o s s o u r i n t e g r a t e d e n t e r p r i s e J C P e n n e y o f f e r s a w i d e a r r a y o f n a t i o n a l p r i v a t e a n d e x c l u s i v e b r a n d s w h i c h r e f l e c t t h e C o m p a n y ' s c o m m i t m e n t t o p r o v i d i n g c u s t o m e r s w i t h s t y l e a n d q u a l i t y a t s m a r t p r i c e s. M a c y s A d d r e s s : N W B l u e P k w y O c c u p a n c y : J u l y S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : M a c y s I n c. w i t h c o r p o r a t e o f f i c e s i n C i n c i n n a t i a n d N e w Y o r k i s o n e o f t h e n a t i o n s p r e m i e r r e t a i l e r s w i t h f i s c a l s a l e s o f b i l l i o n. T h e c o m p a n y o p e r a t e s m o r e t h a n M a c y s d e p a r t m e n t s t o r e s a n d f u r n i t u r e g a l l e r i e s i n 4 5 s t a t e s t h e D i s t r i c t o f C o l u m b i a G u a m a n d P u e r t o R i c o a s w e l l a s 4 0 B l o o m i n g d a l e s s t o r e s i n 1 2 s t a t e s. M a c y s I n c. s d i v e r s e w o r k f o r c e i n c l u d e s a p p r o x i m a t e l y e m p l o y e e s. T h e c o m p a n y a l s o o p e r a t e s m a c y s. c o m a n d B l o o m i n g d a l e s. c o m. P r i o r t o J u n e M a c y s I n c. w a s k n o w n a s F e d e r a t e d D e p a r t m e n t S t o r e s I n c. T h e c o m p a n y s s h a r e s a r e t r a d e d u n d e r t h e s y m b o l M o n t h e N e w Y o r k S t o c k E x c h a n g e. P a g e 3 6

105 I. 0. M Appendix I - Tenant Overview E y e m a s t e r s A d d r e s s : N W B l u e P k w y O c c u p a n c y : M a y S i z e : s q. f t. L e a s e T e r m : M a y C o m p a n y p r o f i l e : E y e m a s t e r s i s a l e a d i n g p r o v i d e r o f e y e c a r e s e r v i c e s a t o v e r l o c a t i o n s t h r o u g h o u t t h e U n i t e d S t a t e s - i n c l u d i n g T e x a s A r i z o n a L o u i s i a n a M i s s o u r i O h i o a n d m u c h m o r e o f t h e M i d w e s t. A s p a r t o f E y e C a r e C e n t e r s o f A m e r i c a I n c. E y e M a s t e r s o f f e r s h i g h - q u a l i t y d e s i g n e r a n d e x c l u s i v e b r a n d s f r a m e s l e n s e s c o n t a c t l e n s e s a c c e s s o r i e s s u n g l a s s e s a n d t h e l e a d i n g t e c h n o l o g y i n v i s i o n c o r r e c t i o n a t c o m p e t i t i v e p r i c e s. I n a d d i t i o n n e a r l y a l l o f o u r s t o r e s p r o v i d e o n e - h o u r s e r v i c e o n m o s t p r e s c r i p t i o n s b y u t i l i z i n g o n - s i t e p r o c e s s i n g l a b o r a t o r i e s. e t r o A d d r e s s : N W B l u e P k w y O c c u p a n c y : F e b r u a r y S i z e : s q. f t. L e a s e T e r m : F e b r u a r y C o m p a n y p r o f i l e : I. 0. M e t r o i s a s p e c i a l t y l i f e s t y l e f u r n i t u r e r e t a i l e r t h a t s e l l s e c l e c t i c i m p o r t f u r n i t u r e a n d a c c e s s o r i e s i n r e t a i l s t o r e s a c r o s s t h e M i d w e s t. O f t e n d e f i n e d b y t h e p r e s s a s n o t y o u r t y p i c a l f u r n i t u r e s t o r e I. 0. M e t r o h a s f e w d i r e c t c o m p e t i t o r s. T h r o u g h i t s i n n o v a t i v e i n - h o u s e p r o d u c t d e v e l o p m e n t t e a m a n d n e t w o r k o f s o u r c i n g o p t i o n s i n 1 4 c o u n t r i e s I. 0. M e t r o i s a b l e t o d i f f e r e n t i a t e i t s e l f f r o m m o n o t o n o u s f u r n i t u r e c h o i c e s s o c o m m o n i n t h e f u r n i t u r e i n d u s t r y t o d a y. I. 0. M e t r o s i n c o m p a r a b l e s p e e d a b i l i t y t o f u l f i l l c o n s u m e r s n e e d s a n d o u t r a g e o u s l y l o w p r i c e s e n a b l e t h e c o m p a n y t o c a p t u r e a l l l e v e l s o f r e s i d e n t i a l a n d c o m m e r c i a l f u r n i t u r e c o n s u m e r s i n t e r e s t s. P a g e 3 7

106 B Appendix I - Tenant Overview J o s A. a n k A d d r e s s : N W B l u e P k w y O c c u p a n c y : M a y S i z e : s q. f t. L e a s e T e r m : J a n u a r y C o m p a n y p r o f i l e : J o s. A. B a n k M e n s w e a r i s n o t j u s t a n o t h e r m e n s w e a r r e t a i l e r. W h a t m a k e s J o s. A. B a n k u n i q u e i s t h a t t h e y h a v e a t t r a c t e d c u s t o m e r s t o t h e i r s t o r e s f o r o v e r y e a r s w i t h a h e r i t a g e o f q u a l i t y a n d w o r k m a n s h i p a n e x t e n s i v e s e l e c t i o n o f b e a u t i f u l l y m a d e c l a s s i c a l l y s t y l e d t a i l o r e d a n d c a s u a l c l o t h i n g a n d p r i c e s t y p i c a l l y 2 0 t o 3 0 p e r c e n t b e l o w c o m p e t i t o r s '. M c A l l i s t e r s D e l i A d d r e s s : N W B l u e P k w y O c c u p a n c y : A p r i l S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : P e o p l e t o d a y c r a v e f r e s h t a s t e s q u i c k s e r v i c e a n d a w e l c o m i n g f r i e n d l y a t m o s p h e r e w h e r e t h e y c a n r e l a x f o r h o u r s o r e a t a n d r u n. A n d t h a t ' s p r e c i s e l y w h a t M c A l i s t e r ' s D e l i d e l i v e r s. M c A l i s t e r ' s w i l l c h a n g e t h e w a y y o u d o d e l i. U p o n e n t e r i n g g u e s t s a r e g r e e t e d b y a m a s s i v e c h a l k b o a r d m e n u f i l l e d w i t h o v e r d i f f e r e n t i t e m s ; s a n d w i c h e s s p u d s s a l a d s s o u p s a n d s w e e t s. T h e o n l y t h i n g m i s s i n g i s f o o d t h a t ' s f r i e d o r g r e a s y - e v e r y t h i n g a t M c A l i s t e r ' s i s m a d e e x a c t l y t h e w a y g u e s t s l i k e i t. P a g e 3 8

107 Appendix I - Tenant Overview C o m p l e t e N u t r i t i o n A d d r e s s : N W B l u e P k w y O c c u p a n c y : A p r i l S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : S i n c e C o m p l e t e N u t r i t i o n h a s b e e n h e l p i n g f a m i l i e s a c r o s s N e b r a s k a a n d I o w a m a i n t a i n t h e i r h e a l t h a n d w e l l n e s s g o a l s o f f e r i n g e x c l u s i v e s u p p l e m e n t s a t a f f o r d a b l e p r i c e s. C o m p l e t e N u t r i t i o n u n d e r s t a n d s t h a t c o m m i t t i n g t o a h e a l t h y l i f e s t y l e c a n b e c o n f u s i n g. S t a f f m e m b e r s a r e a t h l e t e s c e r t i f i e d p e r s o n a l t r a i n e r s f o r m e r s t r e n g t h c o a c h e s a n d p e o p l e e x p e r i e n c e s i n h e a l t h a n d f i t n e s s c o m b i n i n g o v e r 3 0 y e a r s i n t h e s u p p l e m e n t r e t a i l i n d u s t r y. T h e m i s s i o n i s t o c r e a t e a s a f e a n d e f f e c t i v e p r o g r a m u s i n g q u a l i t y w e i g h t m a n a g e m e n t s p o r t s n u t r i t i o n a n d h e a l t h y a g i n g p r o d u c t s t o h e l p s e a c h c u s t o m e r. S a k u r a S u s h i A d d r e s s : N W B l u e P k w y O c c u p a n c y : F e b r u a r y S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : E n j o y f r e s h A s i a n c u i s i n e i n c l u d i n g t r a d i t i o n a l J a p a n e s e n o o d l e s s u s h i o r s a s h i m i a n d C h i n e s e f a v o r i t e s i n c l u d i n g f a v o r i t e s l i k e G e n e r a l T s o ' s C h i c k e n M o n g o l i a n B e e f L o M e i n a n d m o r e. P a g e 3 9

108 Appendix I - Tenant Overview C o l d w a t e r C r e e k A d d r e s s : N W B l u e P k w y O c c u p a n c y : A p r i l S i z e : s q. f t. L e a s e T e r m : A p r i l C o m p a n y p r o f i l e : C o l d w a t e r C r e e k s r e t a i l s t o r e s a r e l o c a t e d t h r o u g h o u t t h e c o u n t r y i n r e g i o n a l m a l l s a n d l i f e s t y l e c e n t e r s. T h e s t o r e e x p e r i e n c e r e f l e c t s o u r b r a n d p o s i t i o n w i t h a n a t m o s p h e r e t h a t e v o k e s t h e b e a u t y o f n a t u r e a n d a w a r m r e l a x e d s e n s e o f e a s e. T h e e x p e r i e n c e i s m e a n t t o i n s p i r e a n d d e l i g h t w o m e n w i t h a b e a u t i f u l l y v i b r a n t i n v i t i n g a n d n a t u r a l m o o d. W i t h e v e r y v i s i t e a c h c u s t o m e r c a n d e l i g h t i n d i s c o v e r i n g s o m e t h i n g n e w a n d b e i n s p i r e d b y i n d i v i d u a l p r o d u c t s t h a t r e f l e c t t h e b r a n d s h e r i t a g e a s a s p e c i a l t y p u r v e y o r o f u n i q u e g o o d s. A s o J u l y t h e r e a r e s t o r e s i n 4 8 s t a t e s. F i n i s h L i n e A d d r e s s : N W B l u e P k w y O c c u p a n c y : A u g u s t S i z e : s q. f t. L e a s e T e r m : J a n u a r y C o m p a n y p r o f i l e : F i n i s h L i n e i s a l e a d i n g a t h l e t i c r e t a i l e r o f f e r i n g t h e b e s t s e l e c t i o n o f b r a n d n a m e f o o t w e a r a p p a r e l a n d a c c e s s o r i e s. T h e m i s s i o n i s t o c o n n e c t t o y o u n g f a s h i o n c o n s c i o u s i n d i v i d u a l s t h r o u g h a p r e m i u m b r a n d e n v i r o n m e n t o f f e r i n g t h e b e s t s e l e c t i o n o f a u t h e n t i c s p o r t i n s p i r e d p r o d u c t s. T h e c o m p a n y o p e r a t e s o v e r s t o r e s i n 4 7 s t a t e s a n d o n l i n e a t w w w. f i n i s h l i n e. c o m. P a g e 4 0

109 Appendix I - Tenant Overview B e a u t y B r a n d s A d d r e s s : N W B l u e P k w y O c c u p a n c y : M a r c h S i z e : s q. f t. L e a s e T e r m : M a r c h C o m p a n y p r o f i l e : F o u n d e d i n B e a u t y B r a n d s h a s a l w a y s b e e n d i f f e r e n t. W e c o m b i n e d t h e i d e a o f a f u l l - s e r v i c e S a l o n & S p a w i t h a d y n a m i c t o s q u a r e f o o t r e t a i l e n v i r o n m e n t. I t w a s t h e f i r s t o f i t s k i n d. A d d t o t h a t t h r e e v e r y i m p o r t c o m p o n e n t s c o n v e n i e n c e s e l e c t i o n a n d v a l u e a n d y o u h a v e t h e r e v o l u t i o n a r y c o n c e p t o f b e a u t y b r a n d s s a l o n. s p a. s u p e r s t o r e. D S W A d d r e s s : N W B l u e P k w y O c c u p a n c y : A p r i l S i z e : s q. f t. L e a s e T e r m : J a n u a r y C o m p a n y p r o f i l e : D S W i s t h e s h o e s h o p p i n g d e s t i n a t i o n f o r s t y l e - c o n s c i o u s w o m e n a n d m e n w h o a p p r e c i a t e v a l u e. W i t h t h o u s a n d s o f s h o e s g r e a t p r i c e s a n d a n e v e r - c h a n g i n g i n v e n t o r y t h e b r a n d c a p t u r e s t h e i m a g i n a t i o n o f s h o e l o v e r s n a t i o n w i d e. E n c o u r a g e d b y t h e a w a r d w i n n i n g l o y a l t y p r o g r a m D S W R e w a r d s t h e s e p a s s i o n a t e s h o p p e r s r e t u r n t i m e a n d t i m e a g a i n t o a t r e a s u r e - f i l l e d e n v i r o n m e n t t h e y c a l l a d d i c t i v e. P a g e 4 1

110 Appendix I - Tenant Overview D r e s s B a r n A d d r e s s : N W B l u e P k w y O c c u p a n c y : O c t o b e r S i z e : s q. f t. L e a s e T e r m : S e p t e m b e r C o m p a n y p r o f i l e : D r e s s B a r n o p e r a t e s c h a i n o f o f f - p r i c e w o m e n ' s a p p a r e l s t o r e s o f f e r i n g c a r e e r f a s h i o n s s u c h a s s p o r t s w e a r d r e s s e s s u i t s b l a z e r s a n d a c c e s s o r i e s t o w o r k i n g w o m e n. C h a r m i n g C h a r l i e s A d d r e s s : N W B l u e P k w y O c c u p a n c y : J u l y S i z e : s q. f t. L e a s e T e r m : J u l y C o m p a n y p r o f i l e : C h a r m i n g C h a r l i e i s a u n i q u e f a s h i o n a c c e s s o r i e s h o u s e t h a t s p e c i a l i z e d i n a f a s t - c h a n g i n g s e l e c t i o n o f f u n a f f o r d a b l e a n d f a b u l o u s f a s h i o n a c c e s s o r i e s a l l o r g a n i z e d b y c o l o r. F e a t u r i n g a p p r o x i m a t e l y p a i r s o f e a r r i n g s a n d a s i m i l a r s i z e a s s o r t m e n t o f n e c k l a c e s b r a c e l e t s a n d m o r e C h a r m i n g C h a r l i e d e l i v e r s s o m e t h i n g f o r e v e r y w o m a n a n d o c c a s i o n. P a g e 4 2

111 K K Appendix I - Tenant Overview J a k e s A d d r e s s : N W B l u e P k w y O c c u p a n c y : O c t o b e r S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : J a k e ' s S u m m i t i s a n e x c l u s i v e r e t a i l e r o f L i f e i s g o o d a p p a r e l a n d g i f t s f o r e v e r y m e m b e r o f t h e f a m i l y. T h e g o a l i s t o s p r e a d g o o d v i b e s a n d s h a r e t h e m e s s a g e t h a t L i f e i s g o o d r e p r e s e n t s w i t h a l l o u r f r i e n d s i n a n s a s C i t y E s c a p i s t A d d r e s s : N W B l u e P k w y O c c u p a n c y : J u l y S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : a n s a s C i t y ' s p r e m i e r l o c a l l y o w n e d a n d s k a t e b o a r d e r o w n e d s k a t e s h o p o f f e r i n g t h e l a r g e s t s e l e c t i o n o f s k a t e b o a r d d e c k s a n d s h o e s i n t h e m e t r o a r e a. E s c a p i s t s p e c i a l i z e s i n s k a t e b o a r d s a c c e s s o r i e s c l o t h i n g a n d f o o t w e a r. E s c a p i s t e m p l o y e e s h a v e s e v e r a l y e a r s o f f i r s t - h a n d s k a t e b o a r d i n g e x p e r i e n c e w h i c h e n s u r e s t h a t c u s t o m e r s r e c e i v e k n o w l e d g e a b l e a s s i s t a n c e s o m e t h i n g y o u w i l l n o t f i n d i n t h e l a r g e r c h a i n s t o r e s. E s c a p i s t a l s o h o s t s a n u m b e r o f e v e n t s. P a g e 4 3

112 Appendix I - Tenant Overview B u c k l e A d d r e s s : N W B l u e P k w y O c c u p a n c y : O c t o b e r S i z e : s q. f t. L e a s e T e r m : J a n u a r y C o m p a n y p r o f i l e : T h e B u c k l e i s a l e a d i n g r e t a i l e r o f b e t t e r - p r i c e d c a s u a l a p p a r e l f o o t w e a r a n d a c c e s s o r i e s f o r f a s h i o n - c o n s c i o u s y o u n g m e n a n d w o m e n. Y a n k e e C a n d l e A d d r e s s : N W B l u e P k w y O c c u p a n c y : S e p t e m b e r S i z e : s q. f t. L e a s e T e r m : J a n u a r y C o m p a n y p r o f i l e : Y a n k e e C a n d l e h a s b e c o m e t h e # 1 m o s t - r e c o g n i z e d n a m e i n t h e c a n d l e b u s i n e s s a n d t h e c o u n t r y ' s b e s t s e l l i n g c a n d l e b r a n d b y s h a r i n g o u r c u s t o m e r s ' " p a s s i o n f o r f r a g r a n c e " i n e v e r y p r o d u c t b r o u g h t t o m a r k e t. T o d a y w i t h o v e r f r a g r a n c e s Y a n k e e C a n d l e o f f e r s t h e w o r l d ' s l a r g e s t a n d m o s t c o m p e l l i n g s e l e c t i o n o f c a n d l e a n d h o m e f r a g r a n c e s c e n t s. I n a d d i t i o n t o t h e r e n o w n e d H o u s e w a r m e r ( c ) l i n e o f s c e n t e d c a n d l e s Y a n k e e C a n d l e a l s o p r o v i d e s a w i d e r a n g e o f s e a s o n a l a n d s p e c i a l t y s c e n t e d c a n d l e s h o m e f r a g r a n c e p r o d u c t s c a r f r e s h e n e r s a n d c a n d l e a c c e s s o r i e s. P a g e 4 4

113 K Appendix I - Tenant Overview G e n n a i o A d d r e s s : N W B l u e P k w y O c c u p a n c y : S e p t e m b e r S i z e : s q. f t. L e a s e T e r m : O c t o b e r C o m p a n y p r o f i l e : G e n n a i o B o u t i q u e i s a l o c a l l y o w n e d a n d o p e r a t e d w o m e n s f a s h i o n b o u t i q u e c u r r e n t l y l o c a t e d i n R a y m o r e M i s s o u r i a n d a t t h e S u m m i t F a i r L i f e s t y l e C e n t e r i n L e e s S u m m i t M i s s o u r i. A s o f M a r c h y o u c a n a l s o f i n d t h e m a t t h e T r e n d z M a r k e t l o c a t e d a t S t r e e t a n d N a l l i n L e a w o o d a n s a s. G e n n a i o c a r r i e s a f u l l l i n e o f h a u t e c o u t u r e f r o m s o m e o f t h e h o t t e s t d e s i g n e r s i n t h e i n d u s t r y a s w e l l a s s e l e c t i o n s f r o m s m a l l e r u n i q u e d e s i g n e r s. F a s h i o n - s a v v y s h o p p e r s c a n f i n d a w i d e r a n g e o f f u n f l i r t y s t y l e s i n e a c h s t o r e i n c l u d i n g d e s i g n e r a p p a r e l j e w e l r y h a n d b a g s a c c e s s o r i e s a n d m u c h m o r e. N o o d l e s A d d r e s s : N W B l u e P k w y O c c u p a n c y : J u l y S i z e : s q. f t. L e a s e T e r m : C o m p a n y p r o f i l e : T h e b e s t d i s h e s f r o m A s i a t h e M e d i t e r r a n e a n a n d A m e r i c a - p r e p a r e d t o y o u r l i k i n g t h e N o o d l e s w a y. J a p a n e s e P a n N o o d l e s W i s c o n s i n M a c & C h e e s e s o m e t h i n g h e a l t h y o r s o m e t h i n g i n d u l g e n t - t h e w o r l d ' s b e s t f o o d i s j u s t i n s i d e o u r d o o r s. W h e t h e r i t ' s n o o d l e s p a s t a s s a l a d s s o u p s o r s a n d w i c h e s w e h a v e s o m e t h i n g f o r e v e r y o n e. A l l m a d e q u i c k l y a n d s e r v e d w i t h s t y l e. R e d L o b s t e r A d d r e s s : N W B l u e P k w y O c c u p a n c y : A u g u s t S i z e : s q. f t. L e a s e T e r m : D e c e m b e r C o m p a n y p r o f i l e : R e d L o b s t e r i s t h e w o r l d ' s l a r g e s t c a s u a l d i n i n g s e a f o o d r e s t a u r a n t w i t h n e a r l y l o c a t i o n s d e l i v e r i n g f r e s h e x p e r i e n c e s a c r o s s N o r t h A m e r i c a. C e r t i f i e d G r i l l M a s t e r s e n s u r e d e l i c i o u s s e a f o o d i s p r e p a r e d w i t h c u l i n a r y e x p e r t i s e o n w o o d - f i r e g r i l l s r e c e n t l y a d d e d t o e v e r y r e s t a u r a n t. I n R e d L o b s t e r w a s n a m e d b y R e s t a u r a n t s & I n s t i t u t i o n s C o n s u m e r s ' C h o i c e i n C h a i n s a s B e s t S e a f o o d C h a i n b y Z a g a t a s B e s t S e a f o o d r e s t a u r a n t a n d b y M e n ' s H e a l t h a s b e s t s i t - d o w n c h a i n r e s t a u r a n t i n A m e r i c a. P a g e 4 5