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4 <br /> 1 (5) Site Location — Medline's site in Orange County comprises six (6) adjacent parcels that are <br /> 2 currently under option in the Buckhorn Economic Development District, totaling approximately <br /> 3 172.79 acres along the north side of West Ten Road (located between the Gravely Hill Middle <br /> 4 School and Buckhorn Road). These properties are indicated on the aerial site map by the red <br /> 5 boundary line. <br /> 6 <br /> 7 Orange County's Performance-Based Incentive Proposal: <br /> 8 The proposed economic development inducement incentive follows the County's current <br /> 9 incentive formula that has been previously utilized with other industrial prospects. The incentive <br /> 10 will be performance-based with respect to the County's annual verification of Medline Industries' <br /> 11 targeted increases over a 5 year period in (1) employment, wages & benefits, and, (2) new <br /> 12 taxable real & personal property additions, as the Company establishes its' Orange County <br /> 13 presence. Incentives would only be paid following confirmation of the Company's required <br /> 14 annual threshold growth in these measures, and, on a pro-rata reimbursement in case the <br /> 15 company's targeted growth in any year lags current growth projections. <br /> The proposed County inducement capped at $1,840,967 is a performance-based grant to be made <br /> to the Company over a five (5) year period, and is calculated in value at an amount equal to 75% of <br /> Medline's projected new investment in real & personal property tax valuation. This specific formula <br /> represents the County's current incentive policy, which has been offered by the BOCC in the past to <br /> other industrial prospects. The formula ensures that annual property tax revenues from the new <br /> investment's additional property tax values, net of annual incentive payments, yield a positive cash <br /> flow in all years of the initial incentive agreement. <br /> Orange County Pro pert Tax Revenue Projections <br /> s n TOTAL <br /> 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year <br /> 2020 2021 2022 2023 2024 2025 <br /> New Property $243,012 $562,399 $555,630 $549,537 $544,045 $537,349 $2,991,972 <br /> Tax Revenues <br /> Incentive 421 799 416 722 412 153 408 034 182 259 ($1,840,967) <br /> Payments <br /> Annual Net $243,012 $140,600 $138,907 $137,384 $136,011 $355,090 $968,745 <br /> Revenues <br /> 16 <br /> 17 * Note: There is no incentive payment scheduled for 2020 due to the company's request that <br /> 18 payments begin after building completion. <br /> 19 <br />