Item 5: PH: Use of 108 Funds for Construction Financing

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2. Sources & Uses: Preliminary Development Financing Plan for Rehabilitation of the Centre Court Building SOURCES OF FUNDS Private Investment $ 735,000 BEDI Grant $1,315,000 Section 108 Loan (#2) $5,189,000 Urban Renewal Cash $ 65,000 DLRP funds $ 350,000 TOTAL SOURCES $7,654,000 USES OF FUNDS Hard Costs $6,064,000 Soft Costs $1,300,000 Financing $ 290,000 TOTAL USES $7,654,000 Urban Renewal Cash: The cash balances in the urban renewal funds, plus cash that becomes available over the next few years, would be used to pay for transaction costs associated with BEDI/108 project #2. Downtown Revitalization Loan Program: The Downtown Urban Renewal District has a loan program called the Downtown Revitalization Loan Program (DRLP). A $350,000 predevelopment loan to Beam has already been committed from this program. 3. Project Structure & Participants a. Principal Developer: Beam is responsible for the rehabilitation of the Centre Court building. The Purchase and Sale Agreement fully delineates the obligations of the developer including the form and character of the development, timing, the mix of uses, private financing and equity, and other obligations including those associated with federal program compliance. b. Developer’s Contractor & Leasing Agency: Beam’s contractor is John Hyland Construction, Inc., a local and reputable general contractor. Beam will be responsible for securing leases for the building and is currently working with Evans, Elder and Brown, Inc., local commercial real estate brokers. c. Private Funds Source: Beam equity will originate from company cash and Business Energy and Historic tax credits, as applicable. d. Asset Ownership Upon Completion: Beam will maintain ownership of the Centre Court building during and after rehabilitation. 2