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paid in the manner consistent with the St. Louis County Assessor's Office personal property tax methodology. It is anticipated that the New Equipment will be purchased for approximately $1,956,000. Using cost as a basis, the assessed equalized value of the personal property related to the Project would be $619,400 in 2005, using the personal property assessed value methodology currently utilized by the St. Louis County Assessor's Office. L. COST BENEFITS ANALYSIS With the paymefits in lieu of taxes as provided in Section 1.2 above, it is anticipated that there will be no reduction in the amount of taxes currently received by the County, the City and the School District. As reflected in the Assessed Valuation Schedule set forth in Exhibit D, the Developer's obligations to make payments in lieu of taxes will be subject to periodic increases throughout the term of the Lease, some of which will be substantial owing to the fact that the 1984 Tax Abatement will be ending in 2009. The Assessed Valuation Schedule reflects the increase in the payments in lieu of taxes related to the ad valorem property tax exemption related to the Project from one hundred percent (100%) exemption to effectively fifty percent (50%) exemption beginning in year eleven (11) of the Performance Agreement and Lease. In addition, the Assessed Valuation Schedule reflects a bi-annual adjustment to the assessed .valuation based on an increase in fair market value of the Property inclusive of the Project of one and a half percent (1.5%). These adjustments shall provide periodic increases in the Developer's payments in lieu of taxes and amounts payable to the County, City and School District subject to the prevailing tax rates of the respective parties. The New Equipment in conjunction with the Project that will also be conveyed to the' City shall be exempt from personal property taxes. Pursuant to the Assessed Valuation Schedule set forth in Exhibit D, the Developer's payments in lieu of taxes beginning in year eleven (11) through the term of the Performance Agreement and Lease (for calendar years 2014-2028) shall include fifty percent (50%) of the then current equalized assessed valuation of the New Equipment. Using the existing St. Louis County equalized assessed valuation methodology, the estimated equalized assessed valuation without the application of any exemptions for the New Equipment beginning in year eleven (11) would be approximately $195,600. Payments in lieu of taxes shall be payable consistent with the prevailing personal property tax rates of each taxing authority applied to fifty percent (50%) of the equalized assessed value of the New Equipment which is $97,800. The payments in lieu of taxes from year eleven (11) through year twenty-five will remain constant. Exhibit E sets forth an analysis of the impact on the ad valorem County, City and School District real property taxes and personal property taxes based on the existing tax rates and allocations. While the tax exemption.in conjunction with the Project may reduce the tax receipts that would otherwise be payable to the County, City and School District, the development of the