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d) completion of project within 4 years of the first payment. <br />There are also clawback provisions in Article IV of the development agreement if the project is not completed <br />in four years or required metrics are not met. <br />CATEGORY <br />TOTAL NEW INVESTMENT <br />Cost of Land : $ - <br />Cost of Building/Structures (Real Property): $ 5,000,000 <br />Cost of Machinery & Equipment (please describe): $ 326,000,000 <br />Cost of Engineering: $ 83,000,000 <br />Cost of Construction: $ 397,000,000 <br />Other (catalyst, misc. chemicals, start-up costs): $ 29,000,000 <br />TOTAL $ 840,000,000 <br />Above is a snapshot from the incentives application provided by the applicant, you will see their total projected <br />cost is $840 million, while our development agreement only asks them to spend $750 million. The reason for this <br />is based on our incentive matrix. The metric most valued by our incentive matrix is tax money coming back to <br />the City over 10 years, total investment is not actually considered in the incentive matrix. To get a conservative <br />number for this, staff only used the cost of building/structures and the cost of machinery/equipment to come to <br />a $331 million projected valuation. The yearly value to the City is reflected in this packet on the payback schedule <br />exhibit. To make sure future valuation, the most important number to the City was cemented into the development <br />agreement, the applicant wanted some flexibility in their required capital investment, which is how the number in <br />the development agreement came to be $750 million. <br />Staff received no comments from the public during the 60-day window. <br />ACTION REQUIRED BY COUNCIL <br />Move to approve the Development Agreement for Project G, an incentive for a styrene monomer facility <br />not to exceed $700,000. <br />Approved for the City Council meeting agenda <br />Corby D. Alexander, City Manager Date <br />