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Director Brown summarized the incentive package to be offered to Piper as follows: • City and County would jointly purchase the existing facilities at fair market value up to $23 million • City and County would jointly pay for construction of additional manufacturing facility at $17 million to enable Piper to expand their operations • City and County would lease back the facility rent-free to Piper for the first 8 years. Year 9 - lease payment would be a subsidized payment of $2.5 million; Year 10 - up to $3.4 million for the lease payment, and Years 11-30 - the lease payments would be adjusted by CPI. • There would be a $600,000.00 local jobs Grant program available • To appoint the City Manager/County Administrator or a dedicated project manager to personally oversee all site plan and permitting activity to expedite completion. Director Brown informed the Panel that the total City and County incentives would be about $40.6 million. In addition to that are other incentives and benefits from the State of Florida Closing Fund, which offered $20 million; Indian River Community College made an offer of $875,000.00 to provide training facilities to Piper employees inclusive of a multi-purpose lab and manufacturing lab; and an additional $15 million capitalized interest/subsidized rent to make a total value Incentive Package of $76.5 million. Director Brown presented the proposed financing options: (1) to have Revenue Bonds where the City and County would split the dollar amount and apply that to the General Funds. He stated that with the tax reform, this type of project would put the City and County in the same situation where they would have to place the tax rate on the ballot and go through a voter referendum to levy the taxes that would be necessary to fund this incentive package. (2) Another alternative for funding is the General Obligation Bonds issue for $40 million. Staff proposed the General Obligation (G.0) Bonds, where the County would place on the ballot one referendum for June 21, 2007 3 Joint Meeting/City of Vero Beach re Piper Aircraft