THE FINANCIAL STATE OF GARY, INDIANA

Financial Overview…

City’s Current Financial State Financial Recovery Plan Sale Leaseback United States Steel Transaction Review of Future Financial Recovery Summary

IF WE DO NOTHING

FULL RECOVERY MEASURES

FINANCIAL RECOVERY TO DATE

UNITED STATES STEEL TRANSACTION DETAILS

INITIAL DISCUSSIONS WITH US STEEL REQUESTING FULL ABATEMENT CONSIDERATION OF OTHER COMMUNITIES $750,000,000 INVESTMENT CREATION OF A TAX INCREMENT FINANCING PAYMENT OF $51,000,000 PILOT IN LIEU OF TAXES TO BE SHARED 55/45 IMPLEMENTATION PROCESS DISTRIBUTION TO CITY, LIBRARY AND SCHOOLS OTHER MEASURES (COMMUNITY ENGAGEMENT AND COMMUNITY

BENEFITS FUND)

UNITED STATES STEEL TRANSACTION ONLY

SALE LEASEBACK TRANSACTION

WHAT IS A SALE LEASEBACK WHY THE SALE LEASEBACK WHAT THE COUNCIL ORDINANCE ALLOWED US TO DO WHY IT NEEDED TO BE AMENDED PROCESS FOLLOWED PRIOR TO CHOOSING A BANKER THE AMOUNT OF PROCEEDS THAT WILL BE RECEIVED BY THE CITY THE INTEREST RATE OF THE TRANSACTION THE ANNUAL PAYMENT AND LENGTH OF REPAYMENT THE COSTS OF THE TRANSACTION AND DEBT RESERVE FUND

REQUIREMENTS

SALE LEASEBACK ONLY