Cleveland Medical Mart and Convention Center Progress Update January 7, 2010 Presented By: Jeffrey R. Appelbaum, Esq.

Presentation Topics County Team Construction Administration Agreement (CAA) Medical Mart Location/Property Acquisition Negotiations with City of Cleveland Design and Construction Schedule

County Team County: Barb Shergalis Dave Lambert Greg Huth Joyce Dodrill Thompson Hine/Project Management Consultants: Jeff Appelbaum Pat Sweeney Heather Stakich

Construction Administration Agreement  Negotiation of CAA with MMPI has been successfully concluded

Construction Administration Agreement Implementation of "bridging" design-build project delivery system County right to approve form and content of design and construction agreements and key participants Selection of design-builder using a competitive best proposal process Transparent open book pricing with assurance that all dollars are expended on project with savings returned to County Requirement of competitive bidding for all principal subcontracts Establishment of early guaranteed maximum price and elimination of late "walk away" right by MMPI County approval rights over Developer's use of contingency funds Limitation on Developer's reimbursable expenses Clarification and requirements respecting use of Developer's fee Specification of diversity, local inclusion and regional employment goals* New parameters regarding schedule and phased construction* Process for expedited dispute resolution The CAA will resolve open issues in Development Agreement and provide greatly enhanced process, including:

Incorporation Of Diversity And Local Inclusion Programs (CAA §§4.21, 5.13) The Development Agreement requires Developer to work with the County to develop goals for diversity, local inclusion and regional employment. The Construction Administration Agreement specifies those goals, which include (a) compliance with the County's Small Business Enterprise Program, and (b) use of good faith efforts to achieve (i) 25% in value of subcontracts to small business enterprises certified by the County, (ii) 40% of the construction workers to be Cuyahoga County residents, and (iii) 20% of the construction workers to be City of Cleveland residents. These goals will offer economic development opportunities in Cuyahoga County and the City of Cleveland for residents and businesses.

Location of Medical Mart The County has made substantial progress securing rights to the southwest corner of the site for eventual location of Medical Mart Progress on Agreement for 113 St. Clair Progress on discussion for remaining property If a portion of the Corner is not secured through negotiation, Medical Mart could be built on remaining property; and unsecured property could always be a public park— obtained by eminent domain.

Negotiations with the City Recent negotiations with the City have been positive $20M purchase price would include commitment by City to expend dollars to make certain improvements inside Public Auditorium Meetings regarding collaborative use of Convention Center and Public Auditorium facilities have been productive Discussions regarding connection/ disconnection issues (e.g., utilities, access, etc.) are ongoing and positive

Schedule GMP Construction Starts!