Minutes 09-10-2019 Special Meeting

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4 Orange County’s Performance-Based Incentive Proposal: The proposed economic development inducement incentive follows the County’s current incentive formula that has been previously utilized with other industrial prospects. The incentive will be performance-based with respect to the County’s annual verification of Medline Industries’ targeted increases over a 5 year period in (1) employment, wages & benefits, and, (2) new taxable real & personal property additions, as the Company establishes its’ Orange County presence. Incentives would only be paid following confirmation of the Company’s required annual threshold growth in these measures, and, on a pro-rata reimbursement in case the company’s targeted growth in any year lags current growth projections. The proposed County inducement capped at $1,840,967 is a performance-based grant to be made to the Company over a five (5) year period, and is calculated in value at an amount equal to 75% of Medline’s projected new investment in real & personal property tax valuation. This specific formula represents the County’s current incentive policy, which has been offered by the BOCC in the past to other industrial prospects. The formula ensures that annual property tax revenues from the new investment’s additional property tax values, net of annual incentive payments, yield a positive cash flow in all years of the initial incentive agreement. Orange County Property Tax Revenue Projections 1st Year 2020 2nd Year 2021 3rd Year 2022 4th Year 2023 5th Year 2024 6th Year 2025 TOTAL New Property Tax Revenues $243,012 $562,399 $555,630 $549,537 $544,045 $537,349 $2,991,972 Incentive Payments ($421,799) ($416,722) ($412,153) ($408,034) ($182,259) ($1,840,967) Annual Net Revenues $243,012 $140,600 $138,907 $137,384 $136,011 $355,090 $968,745 * Note: There is no incentive payment scheduled for 2020 due to the company’s request that payments begin after building completion.