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HomeMy WebLinkAbout2000-04-25 - AGENDA REPORTS - GVR BONDS AMEND CFD99-1 (2)PUBLIC HEARING DATE: SUBJECT: DEPARTMENT: CITY OF SANTA CLARITA AGENDA REPORT April 25, 2000 GOLDEN VALLEY CFD NO. 99-1 Administrative Services RECOMMENDED ACTION City Manager Item to be ROAD BONDS by: Steve Stark - AMENDMENT TO 1. City Council, as legislative body of CFD No. 99-1 (the "CFD"), conduct a public hearing on modifications to the CFD. 2. Adopt Resolution, calling a special election on modifications to the CFD. 3. Hold Special Election. 4. Adopt Resolution, canvassing the results of the Special Election. 5. Adopt Resolution, approving certain changes to CFD. 6. Introduce Ordinance, modifying Ordinance No. CFD 99-1-1. BACKGROUND In 1998, the City entered into a Development Agreement with Spirit Properties Ltd. ("Spirit") to develop a 200 -acre business park. On August 4, 1999, the City entered into a Funding, Construction, and Acquisition Agreement (the "Funding Agreement") with Spirit, which provided that the City may construct Phase I of the Golden Valley Road extension (in conjunction with the Hart School District and the Santa Clarita Valley Facilities Foundation) and that Spirit and PacTen Partners (its proposed buyers) will construct Phases II and III of the Golden Valley Road extension. The Funding Agreement provided that the City would use its best efforts to form a Mello -Roos Community Facilities Districtfor the purpose of funding Phases II and III of the Golden Valley Road extension (up to its B&T obligation) and certain in -tract improvements. The landowner, Spirit, submitted a petition requesting the City to commence the proceedings to form a Community Facilities District. On September 28, 1999, the City declared its intention to form the CFD and issue bonds. On November 9, 1999, a public hearing was held, and the �Agenda Item GOLDEN VALLEY BOND ISSUE April 25, 2000 — Page 2 CFD was formed. Also, on November 9, 1999, an election was held which authorized (a) the levy of an annual special tax, (b) the issuance of special tax bonds not to exceed $33 million, and (c) an appropriations limit for the CFD. The proposition passed with an unanimous vote from the qualified voters (the landowners). On November 30, 1999, the CFD adopted Ordinance No. CFD 99-1-1, which authorized the levy of the special tax. Spirit submitted a petition to annex four more parcels into the CFD (the "Ruether Avenue Parcels") and also to modify the tax Rate and Method of Apportionment (the "RMA"), prioritize the authorized facilities to give priority for use of bond proceeds to Golden Valley Road Phases II and III and storm drain improvements, and to reduce the authorized maximum indebtedness amount from $33,000,000 to $18,000,000. On January 25, 2000, the CFD annexed the Ruether Avenue Parcels to the CFD and adopted a Resolution of Consideration for the changes to the CFD as referenced above. Tonight, a public hearing is scheduled on the proposed changes to the CFD. Provided there is no majority protest from property owners, a special election may be called and held tonight on the proposed changes. Waivers regarding time requirements for holding the election have been obtained from the property owners. Should the proposition pass with a two-thirds vote from the qualified electors (the landowners), the CFD may adopt a Resolution of Change and introduce for first reading the ordinance amending Ordinance No. CFD 99-1-1. The final step for the sale of the bonds will be to adopt a Resolution of Issuance and approve all the accompanying financial documents. On May 9, Council meeting staff will be asking Council to adopt a resolution, authorizing the issuance of special tax bonds in an amount not to exceed $18,000,000 (the "Bonds") and approve various documents. The documents include: (a) a fiscal agent agreement, which includes the terms and provisions of the Bonds, (b) a continuing disclosure agreement, which sets forth the CFD's undertaking to provide information to the marketplace on an annual basis and upon the happening of certain events, (c) a bond purchase agreement which sets forth the terms and conditions for the underwriter, Stone & Youngberg LLC, to purchase the Bonds, and (d) the Preliminary Official Statement, the document which describes the Bonds to the marketplace. It is anticipated that a portion of the Bonds will be escrowed until sufficient value -to -lien ratio can be met by the property owners. The closing for the Bonds should be sometime in late April. ALTERNATIVE ACTION The Council could take no action and not adopt the Resolutions and introduce the Ordinance. GOLDEN VALLEY BOND ISSUE April 25, 2000 — Page 3 FISCAL IMPACT The issuance of $18 million in Community Facilities District bonds will not have an impact on the City's general fund. The bonds will be paid by an assessment placed on the individual property owners in the Business Park. As part of the formation process, Spirit and the City shall be responsible for half each of the CFD formation costs, total estimated to be $90,000. ATTACHMENTS Notice of Public Hearing CFD Map Amended Rate and Method of Apportionment (Available in City Clerk's reading file.) Order of Proceedings Resolution, Calling a Special Election Resolution, Canvassing the Results of a Special Election Resolution, Approving Certain Changes to the CFD Ordinance, Amending Ordinance No. CFD 99-1-1 SS:FO:hds mond\9.p}2 CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING REGARDING THE MODIFICATION OF COMMUNITY FACILITIES DISTRICT 99-1 AND THE ISSUANCE OF SPECIAL BONDS WITH ALL THE ACCOMPANYING DOCUMENTS PUBLIC NOTICE IS HEREBY GIVEN: The City Council of the City of Santa Clarita will hold a public hearing on the modification of Community Facilities District (CFD) 99-1. Three items shall be considered for change including prioritizing the use of bond proceeds, namely Golden Valley Road Phases II and III, amending the special tax rate and method of apportionment, and reduction in the amount of the District's authorized indebtedness from $33 million to $18 million. In addition, the City Council will be considering the authorization of issuing bonds for CFD99-1, Execution and Delivery of a fiscal agent agreement, a Bond purchase agreement, Continuing disclosure agreement, and an Official Statement. The hearing will be held by the Santa Clarita City Council in the City Hall Council Chambers, 23920 Valencia Boulevard, 1" floor, on the 28' day of March 2000, at or after 6:30 p.m. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the City Clerk's Office, Santa Clarita City Hall, 23920 Valencia Boulevard, Suite 301, Santa Clarita, CA. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: Sharon L. Dawson, CMC City Clerk Publish Date: eank%9vrP„ b2 COMMUNITY FACILITIES DISTRICT No. 99-1 (SANTA CLARfTA BUSINESS PARK) CITY OF SANTA CLARITA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA S:TW\FRANMGVRPHS.DGC AMENDED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX PUBLIC NOTICE NOTICE IS HEREBY GIVEN that on April 25, 2000 the City Council of the City of Santa Clarita introduced Ordinance CFD 99-1.2 entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 99-1 (SANTA CLARITA BUSINESS PARK) AMENDING ORDINANCE NO. CFD 99-1-1 A certified copy of the complete teat of the ordinance is posted and may be read in the City Clerk's Office, 23920 Valencia Boulevard, Suite 301, Santa Clarita, and/or a copy may be obtained from that office. Dated this 27''' day of April, 2000. Sharon L. Dawson, CMC, City Clerk City of Santa Clarita STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF SANTA CLARITA ) Sharon L. Dawson, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that by Thursday, April 27, 2000, she caused a certified copy of the subject ordinance to be posted and made available for public review in the City Clerk's office and a copy of the ordinance summary to be published as required by law. Sharon L. Dawson, CMC, City Clerk City of Santa Clarita CONCURRENCE ON HOLDING SPECIAL ELECTION LESS THAN 125 DAYS FOLLOWING THE ADOPTION OF RESOLUTION OF FORMATION As the election official of the special election (the "Election") called for by the Resolution of the City Council of the City of Santa Clarita Acting on Behalf of the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) Calling a Special Election, I hereby concur on holding the Election less than 125 days following the adoption of the Resolution of Consideration and the Resolution Calling for a Special Election in connection with proposed changes to the City of Santa Clarita Community Facilities District No. 99-1. Dated: April 25, 2000 By: a -" 4k- - 4�K OtWQ¢ City Clerk of the City of Santa Clarita, As Election Official MCr01310/09901298/576794.1 CERTIFICATE OF ELECTION OFFICIAL RE BALLOTS STATE OF CALIFORNIA ) )ss. COUNTY OF LOS ANGELES ) I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, DO HEREBY CERTIFY that pursuant to the provisions of Section 53325.4 of the Government Code, I did canvass the return of the votes cast at the Special Election held in the CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 99-1 (SANTA CLARITA BUSINESS PARK) held in Los Angeles County on April 25, 2000. I FURTHER CERTIFY that the Statement of All Votes Cast, to which this certificate is attached, shows the total number of ballots cast in said CFD for the Proposition, and the totals of the respective columns and the totals as shown for the Proposition are full, true and correct. WITNESS my hand this w day of T 2000. CITY OF SANTA CLARITA, CALIFORNIA Sharon L. Dawson, Election Official MG01310/09901298/576793.1 U�V1F mda.a0Frn >OFW 04 co W.4. 0..M W n F W W AMENDED AND RESTATED COMMUNITY FACILITIES DISTRICT REPORT MELLO-RODS COMMUNITY FACILITIES ACT OF 1982 Prepared for CITY OF SANTA CLARITA 23920 Valencia Boulevard, Suite 300 Santa Clarita, California 91355-2196 Prepared by DAVID TAUSSIG AND ASSOCIATES, INC. 1301 Dove Street, Suite 600 Newport Beach, California 92660 April 20, 2000 TABLE OF CONTENTS Section Paee I. INTRODUCTION.............................................................................................................. 1 II. PR07EcrDFscRIPTION.................................................................................................. 2 III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES ................................. 3 Undeveloped Property and Taxable Public Property A. Description of Proposed Public Improvements ............» ............................... 3 B. Estimated Cost of Proposed Bond Financed Public Improvements ............ 3 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES .................................................. 5 A. Projected Bond Sales........................................................................................ 5 B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness.....................................................................................». 5 C. Incidental Expenses to be Included in the Annual Levy of Special Taxes... 5 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX .................................. 6 A. Explanation for Special Tax Apportionment................................................. 6 B. Assigned and Maximum Special Tax Rates.. .......... . ........... e ....................... e.. 7 C. Backup Special Tax........................................................................................... 7 D. Accuracy of Information.................................................................................. 8 VI. BOUNDARIES OF COMMUNITY FACHITIES DISTRICT ................................................... 9 VII. GENERAL TERMS AND CONDITIONS............................................................................... 10 A. Substitute Facilities....................................................»..................................... 10 B. Appeals...............................................................................................................10 C. Prepayment of Special Tax............................................................................... 10 Exhibit A Amended List of Facilities Exhibit B Amended Rate and Method of Apportionment Exhibit C FY 2000-2001 Assigned Special Tax Rates for Developed Property Exhibit D FY 2000-2001 Maximum Special Tax for Final Mapped Property, Undeveloped Property and Taxable Public Property Exhibit E Amended Boundary Map L INTRODUCTION WHEREAS, the City Council of the City of Santa Clarita (hereinafter referred to as the "Council") did, pursuant to the provisions of the "Mello -Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written amended "Report" with the legislative body of the proposed community facilities district. This community facilities district being Community Facilities District No. 99-1 (Santa Clarita Business Park) shall hereinafter be referred to as: "CFD No. 99-1"; and, WHEREAS, the Resolution of Intention of the City Council of the City of Santa Clarita to Establish Community Facilities District No. 99-1 (Santa Clarita Business Park) and to Authorize the Levy of a Special Tax within Community Facilities District No. 99-1 (hereinafter referred to as the "Resolution of Intention") ordering the Report and the Resolution of Consideration of Certain Changes to the CFD No. 99-1 (the "Resolution of Consideration") did direct that said Report generally contain the following: 1. A brief description of the public facilities by type which are required to adequately meet the needs of CFD No. 99-1; and 2. An estimate of the cost for providing the public facilities and an estimate of the fair and reasonable cost of completed facilities or the payment of incidental expenses. NOW, THEREFORE, I, the Director of Administrative Services, on behalf of the officers of the City of Santa Clarita directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, do hereby submit this Report. City of Santa Carita April 20, 2000 CFD No. 99-1 (Santa Ckuita Business Park) Pare I H. PROJECT DESCRIPTION The purpose of CFD No. 99-1 is to finance the acquisition, purchase, modification, expansion, improvement, rehabilitation, leasing and/or construction of certain public facilities which benefit the property proposed for development within the boundaries of the City of Santa Clarita and to pay incidental expenses incurred in connection therewith. Public facilities that may be financed by CFD No. 99-1 are described in Section III below. CFD No. 99-1 currently consists of approximately 288 gross acres. Of this acreage, approximately 232 net acres are expected to be developed into uses subject to a CFD Special Tax levy. At buildout, it is currently expected that CFD No. 99-1 will contain approximately 171 pad area acres which will generate 3,507,059 square feet of non-residential floor area. In addition, the Council designated future annexations of property for CFD No. 99-1 as "Future Annexation Area of the Community Facilities District No. 99-1 (Santa Clarita Business Park)" (the "Future Annexation Area"). My of Santa C(arita April 20, 2000 CFD No. 99-1 (Santa Clarka Business Park) p"p, 2 M. DESCRIPTION AND ESTIMATED COST OF PROPOSED FAcuxn Es A. Description of Proposed Public Improvements A CFD may provide for the purchase, construction, expansion or rehabilitation of any real or tangible property, including public facilities and infrastructure improvements, with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development or rehabilitation occurring within the community facilities district. In addition, a CFD may pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the CFD. The facilities described in this Report are all facilities which the legislative body creating CFD No. 99-1 is authorized to own, construct, or finance, and which are required, in part, to adequately meet the needs of CFD No. 99-1. The actual facilities described herein are those currently expected to be required to adequately meet, in part, the needs of CFD No. 99-1. Facilities improvements which may be financed include, but are not limited to, improvements associated with Golden Valley Road, Ruether Avenue, Golden Triangle Road, Redview Drive, Colewell Place, Hope Way, Mercury Place, and Abco Place as set forth in Exhibit A. The list of facilities differ from the original list in that certain facilities shall have priority in terms of CFD funding. It is not anticipated that CFD funds shall be adequate to finance all improvements. Because the actual needs of CFD No. 99-1 arising as development progresses therein may differ from those currently anticipated, CFD No. 99-1 reserves the right to modify the actual facilities proposed herein to the extent CFD No. 99-1 deems necessary, in its sole discretion, to meet those needs. The Special Taxes' required to pay for the construction, acquisition, or financing of said facilities will be apportioned as described in the Amended Rate and Method of Apportionment of the Special Tax for CFD No. 99-1. B. Estimated Cost of Proposed Bond Financed Public Improvements The facilities and the estimated costs herein are subject to review and confirmation. The costs listed in Table 1 below are estimates only, based upon current construction estimates and actual costs may differ from those estimates herein. It is not anticipated that CFD funds shall be adequate to finance all improvement costs. 'Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Amended Rate and Method of Apportionment. City of Santa Chuita APrll20, 2000 CFD No. 99-1 (Santa Chuila Business Park) Pare 3 TABLE 1 Grading $5,409,615 Street and Traffic Improvements $6,105,419 Right of Way $4,223,873 Sidewalk Improvements $1,544,475 Water Improvements $948,629 Sewer Improvements $634,586 Storm Drainage $5,871,010 Utility Relocation $142,831 Design Engineering $518,207 Contingency $836,148 Soft Costs $959,748 City Obligation (b) ($1,997,615) Total Facilities Costs $25,196,926 (a) Based on the preliminary Funding, Construction and Acquisition Agreement dated August 12, 1999. (b) Estimate, actual amount as calculated in the final Funding, Construction and Acquisition Agreement. City of Santa Clarita Aprll20, 2000 CFD No. 99.1 (Santa Clarka Business Park) Page 4 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES A. Prolected Bond Sales The maximum authorized bonded indebtedness for CFD No. 99-1 is $18,000,000. The actual principal amount of the bonds will be determined by CFD No. 99-1 at the time of issuance of such bonds. B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the costs of administrative, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district due and payable within two years of the issuance of the bonds; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond and disclosure counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit and other credit enhancement costs, and printing costs. For the bonds proposed to be issued by CFD No. 99-1, capitalized interest is estimated at approximately 1.69 percent of the principal amount of the bonds. A reserve fund of 10.00 percent will be required for the bonds, as well as other incidental bond issuance expenses equal to 5.00 percent of the face amount of the bonds. In addition, negative arbitrage on the escrow fund is estimated at approximately 1.88 percent. Actual bond issue costs and assumptions will vary from the above estimates. C. Incidental Exnenses to be Included in the Annual Lew of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the cost of providing public facilities, services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the cost of planning and designing public facilities to be financed pursuant to the Act, including the cost of environmental evaluations of those facilities; the costs associated with the creation of the district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district; and any other expenses incidental to the acquisition, construction, completion, and inspection of the authorized work. While the actual cost of administering CFD No. 99-1 may vary, it is anticipated that the amount of special taxes which can be collected will be sufficient to fund at least $40,000 in annual administrative expenses. City of Santa Clarka April 20, 2000 CFD No. 99-I (Santa Clarity Business Park) Page 5 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX All of the property located within CFD No. 99-1, unless exempted by law or by the Amended Rate and Method of Apportionment, shall be taxed for the purpose of providing necessary facilities to serve CFD No. 99-1. Pursuant to Section 53325.3 of the Act, the tax imposed "is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The Special Tax "may be based on benefit received by parcels of real property, the cost of making facilities or authorized services available to each parcel, or other reasonable basis as determined by the legislative body," although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. As shown in Exhibit B, the adopted Amended Rate and Method of Apportionment provides information sufficient to allow each property owner within CFD No. 99-1 to estimate the maximum annual Special Tax he or she will be required to pay. Sections A through C, below, provide additional information on the Amended Rate and Method of Apportionment of the Special Tax for CFD No. 99-1. A. Explanation for Special Tax Apportionment When a community facilities district is formed, a Special Tax may be levied on each parcel of taxable property within the CFD to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by the CFD. This Special Tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis. When more than one type of land use is present within a community facilities district, several criteria may be considered when apportioning the Special Tax. Generally, criteria based on building square footage, lot size, density and/or land use are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the developer's projected product mix, and are reflective of the proposed land use types within that community facilities district. Specific Special Tax levels are assigned to each land use class, with all parcels within a land use class assigned the same Special Tax rate. The Act does not require that Special Taxes be apportioned to individual parcels based on benefit received. However, in order to ensure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 99-1. The major assumption inherent in the Special Tax rates set forth in the Amended Rate and Method of Apportionment is that the level of benefit received from the proposed public facilities is a function of land use and/or product type. This assumption is borne out through an examination of commonly accepted statistical measure for public facility usage. City of Santa Ciarita AprU 20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page 6 For example, in measuring average weekday vehicle trip -ends, the Institute of Transportation Engineer's Trip Generation manual identifies land use as the primary determinant of trip -end magnitude. Residential properties typically generate a greater number of trip -ends than do non-residential properties, and therefore will tend to receive more benefit from road facilities. Two Land Use Classes have been established for CFD No. 99-1, although only non- residential development is currently planned. All Non -Residential Property will be assigned to Land Use Class 1. All Residential Property, if any, will be assigned to Land Use Class 2. The Special Tax for Non -Residential Property will vary directly with the square footage of floor area on such parcel. The Special Tax for a parcel of Residential Property will be determined by the acreage of that parcel. Based on the types of public facilities that are proposed for CFD No. 99-1 and the factors described above, the Special Taxes assigned to specific land uses are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 99-1 can be considered to be fair and reasonable. B. Assigned and Maximum Special Tax Rates Exhibit C lists the Assigned Special Tax rates for Fiscal Year ("FY") 2000-2001 that may be levied against Developed Property within CFD No. 99-1. Exhibit D lists the FY 2000- 2001 Maximum Special Tax rates that may be levied against Final Mapped Property, Undeveloped Property or Taxable Public Property within CFD No. 99-1. Assigned Special Tax rates cannot exceed the rates shown in Exhibit C for FY 2000-2001, except when the Backup Special Tax is used as discussed in Section C below. The Assigned Special Tax for Developed Property and the Maximum Special Tax for Final Mapped Property, Undeveloped Property and Taxable Public Property will increase at a rate of two percent per year. The Council will annually determine the actual amount of the Special Tax levy based on the method described in Exhibit B and subject to the Maximum Special Tax rates contained in Exhibit C and Exhibit D. The Council will levy a Special Tax to the extent necessary to meet the Special Tax Requirement. C. Backup Special Tax Should the density of development within CFD No. 99-1 fall below the level projected in the current development plans, pursuant to the Amended Rate and Method of Apportionment, it may be necessary to levy the Maximum Special Tax using the Backup Special Tax pursuant to Section C.l.d. of the Amended Rate and Method of Apportionment. If use of the Backup Special Tax should become necessary, Maximum Special Tax rates for some parcels classified as Developed Property will be increased above the Assigned Special Tax rates shown in Exhibit B until the Special Tax Requirement is met. However, under no circumstances will the Special Tax on an Assessor's Parcel of Developed Property City of &aaa Clarnta April20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Pace 7 be increased to a level that exceeds the Maximum Special Tax (the greater of the applicable Backup Special Tax or the applicable Assigned Special Tax). A Accuracy of Information In order to establish the Special Taxes for CFD No. 99-1 as set forth in the Amended Rate and Method of Apportionment, David Taussig and Associates, Inc. has relied on information including, but not limited to absorption, land -use types, building square footage, and net taxable acreage which were provided to David Taussig and Associates, Inc., by others. David Taussig and Associates, Inc. has not independently verified such data and disclaims responsibility for the impact of inaccurate data provided by others, if any, on the Amended Rate and Method of Apportionment for CFD No. 99-1, including the inability to meet the financial obligations of CFD No. 99-1. City of Santa Clarita April 20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Pare 8 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of CFD No. 99-1 include all land on which the Special Taxes may be levied. A map of the area included within CFD No. 99-1 and the Future Annexation Areas is provided as Exhibit E. City of Santa Cku*a Apri120, 2000 CFD No. 99-1 (Santa Ckrita Business Park) Page 9 VII. GENERAL TERMS AND CONDITIONS A. Substitute Facilities The description of the public facilities, as set forth herein, are general in their nature. The final nature, location, and costs of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans may show substitutes, in lieu or modifications to the proposed work in order to accomplish the work of improvement, and any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in this Report, or as set forth in the Funding, Construction, and Acquisition Agreement dated August 12, 1999, or as may be amended in the future. B. Anneals As fully described in Section F of the Amended Rate and Method of Apportionment, any landowner who feels that the amount of the Special Tax is in error may file a notice with CFD No. 99-1 appealing the levy of the Special Tax. As appropriate, a representative of CFD No. 99-1 will then review the appeal and, if necessary, meet with the appellant. If the findings of the representative verify that the amount of the Special Tax should be modified or changed, then, as appropriate, the Council or its designee may correct the Special Tax levy. C. Prepayment of Special Tax The Special Tax applicable to an Assessor's Parcel of Developed Property may be prepaid in whole or in part according to the prepayment provisions in the Amended Rate and Method of Apportionment. KNCLWMS2ISANTACLARrrA\MEILO\CFD_tpr5.DOC Prepared: April 20, 2000 City of Santa Clarita Apra! 20, 2000 CFD No. 99-I (Santa Clarita Business Park) Pao. to EXHIBIT A AMENDED LIST OF FACIIdTIES The following improvements shall have first priority for CFD funding: • Street and traffic, sewer, water and sidewalk improvements for Golden Valley Road, including all necessary appurtenances. • Storm drain improvements. The following improvements may be financed from CFD funds, if available: • Sewer, water, street and traffic, and sidewalk improvements for roads other than Golden Valley Road, including all necessary appurtenances. AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 99-1 (SANTA CLARITA BUSINESS PARK) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) ("CFD No. 99-1 ") and collected each Fiscal Year commencing in Fiscal Year 2000-2001, in an amount determined by the City Council of the City of Santa Clarita, through the application of the Amended Rate and Method of Apportionment as described below. All of the real property in CFD No. 99-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 99-1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 99-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 99-1 or any designee thereof of complying with City, CFD No. 99-1 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 99-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 99-1 for any other administrative purposes of CFD No. 99-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's parcel number. a ".V qj u q�aava Apri120, 2000 CFD No. 99-1 (Santa C1arka Business Park) Page 1 "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, Final Mapped Property and Undeveloped Property, as determined in accordance with Section C below. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, Final Mapped Property and Undeveloped Property, as determined in accordance with Section C below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 99-1 under the Act. "CFD No. 99-1" means the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park). "City" means the City of Santa Clarita. "Council" means the city council of the City. "County" means the County of Los Angeles. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Final Mapped Property and Taxable Public Property, for which a building permit for new construction was issued prior to May 1 of the prior Fiscal Year. "Final Mapped Property" means, for each Fiscal Year, all Taxable Property, exclusive of Developed Property and Taxable Public Property, which is located in Tentative Tract Map 42670-01, or which as of May 1 of the prior Fiscal Year was located within (i) a final map, a phased final map, or portion thereof, which was recorded after January 1, 2000 pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots for which building permits may be issued, or (ii) for Condominiums, a final map recorded after January 1, 2000 and a condominium plan recorded pursuant to California Civil Code Section 1352 creating such individual lots. The term "Final Mapped Property" shall include any parcel map or subdivision map or portion thereof, that creates individual lots for which a building permit may be issued, including parcels that are designated as a remainder parcel. "Finance Director" means the Finance Director of the City or his or her designee. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1 below c uy of 3anra ularaa Aprll20, 2000 CFD No. 99-1 (Santa Clarka Business park) Page 2 "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Net Acre or Net Acreage" means an amount of acreage of Taxable Property within CFD No. 99-1. The Net Acreage of an Assessor's Parcel shall be the land area of the Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "Non -Residential Floor Area" means the total building square footage of the non- residential building(s) located on an Assessor's Parcel, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides. The determination of Non -Residential Floor Area shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Non -Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a non-residential use. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Pad Area Acre" or "Pad Area Acreage" means land area of an Assessor's Parcel, not including any part of the Assessor's Parcel for which the ground slope exceeds 5 percent, as set forth in Attachment 1, or as superseded by the final grading plan for the tract map or parcel map that relates to the Assessor's Parcel. Prior to the approval of a final grading plan for a tract map, phased final map or parcel map, should there be a modification to one or more lot lines establishing an Assessor's Parcel, or should subdivisions occur and new Assessor's Parcels be created, the amount of "Pad Area Acreage" assigned to the modified or new Assessor's Parcel(s) shall be calculated by prorating the Pad Area Acreage assigned to the predecessor Assessor's Parcel(s) as listed in Attachment 1, based on the relative amounts of total Net Acreage within the modified or new Assessor's Parcel(s). "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. For Final Mapped Property, "Proportionately" means that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Final Mapped Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Undeveloped Property. "Public Property" means any property within the boundaries of CFD No. 99-1 that is (i) used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency or (ii) encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement, provided however that any s rry o) Santa c:kuua AprU 20, 2000 CFD No. 99-I (Santa Clarka Business Park) Page 3 property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Resolution of Formation" means the resolution of the City Council of the City, adopted under the Mello -Roos Act to establish CFD No 99-1. "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means, for any Fiscal Year, the amount required after taking into account amounts held in funds and accounts under the Indenture which are intended to be used to pay debt service on Outstanding Bonds in the calendar year beginning in such Fiscal Year, to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for construction of facilities described in the Resolution of Formation required by Section 53325.1 of the Act, if any; and (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 99-1 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Mapped Property or Taxable Public Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 99-1 shall be classified as Developed Property, Final Mapped Property, Taxable Public Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with the amended rate and method of apportionment determined pursuant to Sections C and D below. The Assigned Special Tax for Developed Property which is Non -Residential Property shall be based on the amount of Non -Residential Floor Area or on the Pad Area Acreage within City of Santa Clarita April20, 2000 CFD No. 99-I (Santa Clarita Business Park) Page 4 the Assessor's Parcel. The Assigned Special Tax for Developed Property which is Residential Property shall be based on the Net Acreage within the Assessor's Parcel. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assigned Special Tax The Fiscal Year 2000-2001 Assigned Special Tax for each Land Use Class shall be calculated based on the tax levels listed in Table 1. TABLE 1 Assigned Special Taxes for Developed Property in Community Facilities District No. 99-1(Santa Clarita Business Park) (Fiscal Year 2000-2001) C. Increase in the Assigned Special Tax On each July 1, commencing on July 1, 2001, the Assigned Special shall be increased by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. d. Backup Special Tax The Backup Special Tax in CFD No. 99-1 shall equal $7,367 per Net Acre for Fiscal Year 2000-2001, and shall increase thereafter, commencing on July 1, 2001 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. Luy o1 Santa Liar= April 20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page S 2. Final Mapped Property, Undeveloped Property and Taxable Public Property a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Final Mapped Property, Undeveloped Property and Taxable Public Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assigned Special Tax The Fiscal Year 2000-2001 Assigned Special Tax for Final Mapped Property, Undeveloped Property and Taxable Public Property shall be $9,962 per Pad Area Acre for Fiscal Year 2000-2001. C. Increase in the Assigned Special Tax On each July 1, commencing on July 1, 2001, the Assigned Special shall be increased by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. d. Backup Special Tax The Backup Special Tax in CFD No. 99-1 shall equal $7,367 per Net Acre for Fiscal Year 2000-2001, and shall increase annually thereafter, commencing on July 1, 2001 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. 3. Reduction in Maximum Special Tax Rates If additional properties are annexed to the CFD, the Maximum Special Tax rates applicable to all Assessor's Parcels shall be permanently reduced in accordance with the provisions of the Indenture. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2000-2001 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equal the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax; P-uy of aanta c'tarua April 20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page 6 Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Mapped Property at up to $7,000 per Pad Area Acre. Third: If additional monies are needed to satisfy the Special Tax Requirement after the fust two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to $7,000 per Pad Area Acre. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Mapped Property and Undeveloped Property at up to 100% of the applicable Assigned Special Tax. Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property, Final Mapped Property and Undeveloped Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property up to the Maximum Special Tax for Taxable Public Property. E. EXEMPTIONS No Special Tax shall be levied on up to 55.59 Acres of Public Property. Tax-exempt status will be irrevocably assigned by the Finance Director in the chronological order in which property becomes Public Property. Public Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the sixth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property. However, on a year to year basis, the Finance Director may exempt such Assessor's Parcels from the levy of the Special Tax in any Fiscal Year provided the Special Tax Requirement can be satisfied without imposing a levy on said Assessor's Parcels. F. REVIEW/APPEAL COMMITTEE The Council shall establish as part of the proceedings and administration of CFD No. 99-1 a special three-member Review/Appeal Committee. Any landowner or resident who feels that the amount of the Special Tax, as to their Assessor's Parcel, is in error, may file a notice with the Review/Appeal Committee appealing the amount of the Special Tax levied on such Assessor's Parcel. The Review/Appeal Committee shall interpret this Amended Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of t" y of aanra uuuva April 20, 2000 CFD No. 99-1(Sania C/arita Business Park) Page the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 99-1 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the Engineerin News -Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Finance Director that is reasonably comparable to the Engineering News -Record Building Cost Index for the City of Los Angeles. "Outstanding Bonds" means all Previously issued Bonds which remain outstanding as of the fust interest and/or principal payment date following the current Fiscal Year. "Previously Issued Bonds" means all Bonds that have been issued by CFD No. 99-1 prior to the date of prepayment. "Update Property" means an Assessor's Parcel of Final Mapped Property or Undeveloped Property for which a building permit has been issued, but which has not yet been classified as Developed Property. 1. Prepayment in Full The Special Tax obligation applicable to any Assessor's Parcel in CFD No. 99-1 may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide CFD No. 99-1 with written notice of intent to prepay. Within 30 days of receipt of such written notice, CFD No. 99-1 shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. t;uy of wma c'iaraa Aprll20, 2000 CFD No. 99-I (Santa Ckuita Business Park) Page 8 The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Paraaraah No.: For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and Backup Special Tax applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Update Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. For Assessor's Parcels of Final Mapped Property and Undeveloped Property to be prepaid which are not Update Property, compute the Assigned Special Tax and Backup Special Tax for the Assessor's Parcel to be prepaid. 2. (a) Divide the Assigned Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the estimated Assigned Special Taxes for the entire CFD No. 99-1 based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 99-1, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the estimated Backup Special Taxes for the entire CFD No. 99-1 excluding any Assessor's Parcels which have been prepaid. 3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). 4. Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. Compute the amount needed to pay interest on the Bond Redemption Amount from the fust bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. Luy of wnra utaraa April20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page 9 6. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 7. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 8. Compute the minimum amount the Finance Director expects to derive from the reinvestment of the Bond Redemption Amount plus the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 5 and 7 and subtract the amount computed pursuant to paragraph 8. 10. Compute the net present value of the amount computed pursuant to paragraph 9, using as a discount rate the rate of return assumed by the Finance Director in paragraph 8 (the "Defeasance Amount"). 11. Verify the administrative fees and expenses of CFD No. 99-1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the 'Reserve Fund Credit'). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated as a reduction in the capitalized interest fund, for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Capitalized Interest Credit"). 14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 3, 4, 10 and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the "Prepayment Amount"). From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 10, 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 11 shall be retained by CFD No. 99-1. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be a uy of area -&arua April 20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page 10 retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 (above), the Finance Director shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Assigned Special Taxes that may be levied on Taxable Property within CFD No. 99-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Fifty Percent Prepayment A partial prepayment of fifty percent of the Special Tax obligation applicable to an Assessor's Parcel of Developed Property, Update Property, Final Mapped Property and Undeveloped Property may be prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a fifty percent prepayment shall be calculated according to the following formula: FPP=PEx.S These terms have the following meaning: FPP the fifty percent prepayment PE = the Prepayment Amount calculated according to Section H.1. The owner of any Assessor's Parcel who desires a fifty percent prepayment shall notify the City at any time of such owner's intent to partially prepay the Special Tax. The City shall provide the owner with a statement of the amount required for the fifty percent prepayment of the Special Tax for an Assessor's Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it by the escrow agent according to the Indenture, and (ii) indicate in the records of CFD No. 99-1 that there has been a fifty percent prepayment of the Special Tax and that fifty percent of the remaining Maximum Special Tax shall continue to be levied on such Assessor's Parcel pursuant to Section D. Such percentage reduction shall apply regardless of whether the Maximum Special Tax on such Assessor's Parcel (or its successors) is based on the Assigned Special Tax or the Backup Special Tax. cuy o1 aanta uarua Aprll20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page 11 I. TERM OF SPECIAL TAX The Special Tax shall be levied on Residential Property for a term not to exceed 50 years, commencing with Fiscal Year 2000-2001. For Non -Residential Property, the Special Tax shall be levied until all Bonds have been retired. KFC imts2XSMTACLAWAUff1AVtMA\CLAWTA_aMA8.dm Prepared: Apd120.2000 City of Santa Clarity Apra 20, 2000 CFD No. 99-I (Santa Cku to Business Park) Page 12 ATTACHMENT 1 COMMUNITY FACILITIES DISTRICT NO. 99-1 PAD AREA ACREAGE BY ASSESSOR'S PARCEL NUMBER Assessor's Parcel Number Pad Area Acreage 2836-015-027 38.5 2836-015-028 0.6 283,6-016-003 0.1 2836-016-017 80.8 2836-017-041 18.9 2836-017-050 3.0 2836-017-053 3.3 2836-018-024 6.5 2836-018-025 6.5 2836-018-026 6.5 2836-018-028 0.1 2836-018-038 6.5 Tom 171.3 ` ujv vi u w a.aarua AprU 20, 2000 CFD No. 99-1 (Santa Clarita Business Park) Page 13 EXHIBIT C FY 2000 - 2001 Assigned Special Taxes for Developed Property CFD No. 99-1 ■ All Special Tax rates are subject to an annual increase. Please refer to Exhibit B for more information. EXHIBIT D FY 2000-2001 Maximum Special Tax for Final Mapped Property, Undeveloped Property and Taxable Public Property CFD No. 99-1 Final Mapped Property Undeveloped Property Taxable Public Property $9,962 per Pad Area Acre $9,962 per Pad Area Acre $9,962 per Pad Area Acre * All Special Tax rates are subject to an annual increase. Please refer to Exhibit B for more information. EXHIBIT E AMENDED BOUNDARY MAP TO: CITY COUNCIL OF THE CITY OF SANTA CLARITA FROM: LANDOWNER REQUESTING CHANGES TO CFD NO. 99-1 REQUEST FOR CERTAIN CHANGES AND WAIVER OF CERTAIN ELECTION PROCEDURES AND TIME REQUIREMENTS WITH RESPECT TO LANDOWNER ELECTION The undersigned landowner does hereby certify under penalty of perjury that the following statements are all true and correct: The undersigned are authorized to represent the landowner identified below and are its designated representatives to petition the City Council (the "City Council") of the City with respect to changes to the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) (the "CFD") formed under the provisions of the "Mello -Roos Community Facilities Act of 1982" (the "Act"), being Chapter 2.5 of Part 1 of Division 2 of title 5 (commencing with Section 53311) of the California Government Code, over the properties included within this petition. 2. The undersigned hereby certify that as of the date indicated opposite their signatures, the landowner listed herein is the sole owner of property within the boundaries of the CFD. 3. The undersigned, pursuant to Section 53332 of the Act, hereby requests that proceedings be commenced to (i) to prioritize the use of bond proceeds for certain facilities that the CFD is authorized to own, operate or contribute revenue to, (ii) modify the rate and method of apportionment of the special tax of the CFD, and (iii) reduce the amount of authorization of bonds for the CFD. 4. The landowner hereby appoints f . tle as its authorized representative to vote in the election referred to herein and certifies that his or her true and exact signature is set forth below: The undersigned hereby certifies that as of the date indicated opposite its signature, the landowner listed herein is the owner of approximately 3 8.28 acres of land within MG01310/09901298/581474.2 the boundaries of the CFD, such property further described in Exhibit "A" hereto (the "Property"). There are no registered voters residing within the Property and have been none during the 90 -day period preceding the March 28, 2000 (continued to April 25, 2000) public hearing conducted by the City Council pursuant to Government Code Section 53325. 6. On or about March 7, 2000, the landowner and the appropriate officers thereof were made aware of the March 28, 2000 (continued to April 25, 2000) public hearing to be held regarding the prioritization of certain of the facilities for the CFD, the modification to the rate and method of apportionment and the reduction in the amount of authorized indebtedness of the CFD. The landowner agrees that it received adequate notice of the hearing. The landowner and the appropriate officers thereofhave received necessary and relevant information regarding these issues from the City and the City has made available to the landowner sufficient opportunity to obtain such information. 7. In accordance with the provisions of the Act, and specifically Sections 53326(a) and 53327(b) thereof allowing certain time and conduct requirements relative to a special landowner election to be waived with the unanimous consent of all the landowners to be included in a community facilities district and concurrence of the election official conducting the election, the undersigned (i) expressly consents to the conduct of the special election at the earliest possible time the conduct of the public hearing and (ii) expressly waives any requirement to have the special election conducted within the time periods specified in Section 53326 of the Act or in the California Elections Code. 8. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agree that said election may be conducted by mailed or hand - delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk of the City Council and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the formation of the CFD or the next available meeting. 9. The undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, as set forth in Section 53327 of the Act, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. 10. The undersigned expressly waives all notice requirements relating to hearings and special elections, whether by posting, publishing or mailing, and whether such requirements are found in the California Elections Code, the California Government MCi01310/09901298/581474.2 2 Code or other laws or procedures, including but limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. 11. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to the CFD or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure. 12. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and the time limitations which apply in connection with scheduling and mailing and publishing notices of such an election, are unnecessary in light of the fact that the undersigned has received sufficient information of the proposed changes for CFD. IN WITNESS WHEREOF, I unto set my hand this _ yd- day of0 fi1eu�✓ Q��nuo6V-546.s�) IK� a l t ruga �/ v✓a �n�. By. Name: Title: ACKNOWLEDGE: MORTGAGOR: DATED: Print or Type Name(s) of Trust Deed Holders Un Its: MG01310/09901298/581474.2 Filed in the office of the City Clerk of the City of Santa Clarita on Rs- , 02OOD. By: a x ^-- Sharon L. Dawson, City Clerk MG01310/09901298/581474.2 EXHIBIT A PROPERTY DESCRIPTION S Er-, A+6C6,�- M001310/09901298/581474.2 320047604 SCHEDULE A (CONTINUED) DESCRIPTION: THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19, IN TOWNSHIP 4 NORTH, RANGE 15 WEST, OF THE SAN BERNARDINO MERIDIAN, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE MARCH 29, 1877. EXCEPT ONE-HALF OF ALL OIL, GAS, MINERAL AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND, BUT WITHOUT RIGHT OF ENTRY TO THE SURFACE OF SUBSURFACE ABOVE A DEPTH OF 500 FEET FROM THE SURFACE THEREOF, AS RESERVED BY HARLEY A. ROBERTS AND EDNA SEELINGER ROBERTS, HUSBAND AND WIFE, AND JAMES A. ROBERTS, A MARRIED MAN, AS JOINT TENANTS, IN DEED RECORDED NOVEMBER 29, 1968, AS INSTRUMENT NO. 216. PARCEL 2: THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19, IN TOWNSHIP 4 NORTH, RANCE 15 WEST, OF THE SAN BERNARDINO MERIDIAN, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE, MARCH 29, 1877. EXCEPT ONE-HALF OF ALL OIL, GAS, MINERAL AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND, BUT WITHOUT RIGHT OF ENTRY TO THE SURFACE OR SUBSURFACE ABOVE A DEPTH OF 500 FEET FROM THE SURFACE THEREOF, AS RESERVED BY HARLEY A. ROBERTS AND EDNA SEELINGER ROBERTS, HUSBAND AND WIFE, AND JAMES A. ROBERTS, A MARRIED MAN, AS JOINT TENANTS, IN DEED RECORDED NOVEMBER 29, 1.968 AS INSTRUMENT NO. 216. PARCEL 3: THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19, IN TOWNSHIP 4 NORTH, RANGE 15 WEST, OF THE SAN BERNARDINO MERIDIAN, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE, MARCH 29, 1877. EXCEPT ONE-HALF OF ALL OIL, GAS, MINERAL AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND, BUT WITHOUT RIGHT OF ENTRY TO THE SURFACE OR SUBSURFACE ABOVE A DEPTH OF 500 FEET FROM THE -2- 320047604 SURFACE THEREOF, AS RESERVED BY HARLEY A. ROBERTS AND EDNA SEELINGER ROBERTS, HUSBAND AND WIFE, AND JAMES A. ROBERTS, A MARRIED MAN, AS JOINT TENANTS, IN DEED RECORDED NOVEMBER 29, 1968, AS INSTRUMENT NO. 216. PARCEL 4: THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19, IN TOWNSHIP 4 NORTH, RANGE 15 WEST, OF THE SAN BERNARDINO MERIDIAN, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE, MARCH 29, 1877. EXCEPT THEREFROM THAT PORTION THEREOF INCLUDED WITHIN THE LINES OF THE LAND DESCRIBED IN THE DEED TO THE CITY OF LOS ANGELES, RECORDED ON SEPTEMBER 30, 1982, AS INSTRUMENT NO. 82-988610 OF OFFICIAL RECORDS OF SAID COUNTY. EXCEPT ONE-HALF OF ALL OIL, GAS, MINERAL AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND, BUT WITHOUT RIGHT OF ENTRY TO THE SURFACE OR SUBSURFACE ABOVE A DEPTH OF 500 FEET FROM THE SURFACE THEREOF, AS RESERVED BY HARLEY A. ROBERTS AND EDNA SEELINGER ROBERTS, HUSBAND AND WIFE, AND JAMES A. ROBERTS, A AA.RRIED MV AS JOINT TENANTS, IN DEED RECORDED NOVEMBER 29, 1968 AS INSTRUMENT NO. 216. -3- OFFICIAL BALLOT CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 99-1 (SANTA CLARITA BUSINESS PARK) SPECIAL ELECTION APRIL 25, 2000 To vote, mark a cross (+) or check (d) in the voting square after the word "YES" or after the word "NO." All marks otherwise made are forbidden. This ballot is provided to �1 1.v)JAP-V n i 1� mais a k !w� as owner or authorized representative of an owner of land within the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) and represents 39 votes. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Santa Clarita at 23920 Valencia Boulevard, Santa Clarita, California 91355-2196. PROPOSITION A: Shall the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) prioritize the use of bond proceeds for certain authorized facilities, namely, Golden Valley Road Phases H and III and storm drain facilities, shall it amend the rate and method of apportionment by, among other things, reducing the maximum special tax, all as provided in Resolution No. CFD 99-1- , and shall it reduce the amount of authorized indebtedness of the CFD from the maximum aggregate principal amount of $33,000,000, to the maximum aggregate principal amount of $18,000,000? YES NO TO: CITY COUNCIL OF THE CITY OF SANTA CLARITA FROM: LANDOWNER REQUESTING CHANGES TO CFD NO. 99-1 REQUEST FOR CERTAIN CHANGES AND WAIVER OF CERTAIN ELECTION PROCEDURES AND TIME REQUIREMENTS WITH RESPECT TO LANDOWNER ELECTION The undersigned landowner does hereby certify under penalty of perjury that the following statements are all true and correct: The undersigned are authorized to represent the landowner identified below and are its designated representatives to petition the City Council (the "City Council") of the City with respect to changes to the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) (the "CFD") formed under the provisions ofthe "Mello -Roos Community Facilities Act of 1982" (the "Act'), being Chapter 2.5 of Part 1 of Division 2 of title 5 (commencing with Section 53311) of the California Government Code, over the properties included within this petition. 2. The undersigned hereby certify that as of the date indicated opposite their signatures, the landowner listed herein is the sole owner of property within the boundaries of the CFD. 3. The undersigned, pursuant to Section 53332 of the Act, hereby requests that proceedings be commenced to (i) to prioritize the use of bond proceeds for certain facilities that the CFD is authorized to own, operate or contribute revenue to, (ii) modify the rate and method of apportionment of the special tax of the CFD, and (iii) reduce the amount of authorization of bonds for the CFD. 4. The landowner hereby appoints L p o v 2 AS n- c.r ^ as its authorized representative to vote in the election referred to herein and certifies that his or her true and exact signature is set forth below: 5. The undersigned hereby certifies that as of the date indicated opposite its signature, the landowner listed herein is the owner of approximately 249.43 acres of land within MGO1310109901298/5814741 the boundaries of the CFD, such property further described in Exhibit "A" hereto (the "Property"). There are no registered voters residing within the Property and have been none during the 90 -day period preceding the March 28, 2000 (continued to April 25, 2000) public hearing conducted by the City Council pursuant to Government Code Section 53325. 6. On or about March 7, 2000, the landowner and the appropriate officers thereof were made aware of the March 28, 2000 (continued to April 25, 2000) public hearing to be held regarding the prioritization of certain of the facilities for the CFD, the modification to the rate and method of apportionment and the reduction in the amount of authorized indebtedness of the CFD. The landowner agrees that it received adequate notice of the hearing. The landowner and the appropriate officers thereofhave received necessary and relevant information regarding these issues from the City and the City has made available to the landowner sufficient opportunity to obtain such information. In accordance with the provisions of the Act, and specifically Sections 53326(a) and 53327(b) thereof allowing certain time and conduct requirements relative to a special landowner election to be waived with the unanimous consent of all the landowners to be included in a community facilities district and concurrence of the election official conducting the election, the undersigned (i) expressly consents to the conduct of the special election at the earliest possible time the conduct of the public hearing and (ii) expressly waives any requirement to have the special election conducted within the time periods specified in Section 53326 of the Act or in the California Elections Code. 8. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agree that said election may be conducted by mailed or hand - delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk of the City Council and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the formation of the CFD or the next available meeting. 9. The undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, as set forth in Section 53327 of the Act, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. 10. The undersigned expressly waives all notice requirements relating to hearings and special elections, whether by posting, publishing or mailing, and whether such requirements are found in the California Elections Code, the California Government MG01310/09901298/581474.2 2 J Code or other laws or procedures, including but limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. 11. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to the CFD or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure. 12. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and the time limitations which apply in connection with scheduling and mailing and publishing notices of such an election, are unnecessary in light of the fact that the undersigned has received sufficient information of the proposed changes for CFD. IN WITNESS WHEREOF, I unto set my hand this 'Z'I day of &Rr' Ca SPIRIT PROPERTIES, LTD. a California corporation By: Name: :♦e Title: ACKNOWLEDGE: MORTGAGOR: DATED: Print or Type Name(s) of Trust Deed Holders 0 Its: MGO 1310/09901298/581494.2 Filed in the office of the City Clerk of the City of Santa Clarita on aZS o2Li�. By:x Sharon L. Dawson, City Clerk MG01310/09901298/581474.2 EXHIBIT A PROPERTY DESCRIPTION MG01310/09901298/581474.2 9912954-51, ME, NB - APRIL 24, 2000 LEGAL DESCRIPTION FOR THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THOSE PORTIONS OF THE RANCHO SAN FRANCISCO, AS SHOWN ON MAP RECORDED IN BOOK 1 PAGES 521 AND 522 OF PATENTS, TOGETHER WITH THAT PORTION OF LOT 62 OF ST. JOHNS SUBDIVISION, AS PER MAP RECORDED IN BOOK 196 PAGE 304 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, TOGETHER WITH THAT PORTION OF SECTION 19, TOWNSHIP 4 NORTH, RANGE 15 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS WHOLE AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHEASTERLY LINE OF THE 100 FOOT RIGHT OF WAY OF THE SOUTHERN PACIFIC RAILROAD WITH THE CENTER LINE OF THE STRIP OF LAND 100 FEET WIDE, DESCRIBED IN THE DEED TO THE CITY OF LOS ANGELES RECORDED IN BOOK 4552 PAGE 178 OF DEEDS, RECORDS OF SAID COUNTY; THENCE ALONG THE SAID CENTER LINE SOUTH 11°41' EAST TO THE SOUTHERLY TERMINUS OF THE CENTER LINE DESCRIBED IN SAID DEED AS "SOUTH 11°41' EAST, A DISTANCE OF 4869.40 FEET; THENCE SOUTH 26°30' EAST 1309.50 FEET; THENCE ALONG THE CENTER LINE OF THE STRIP OF LAND 100 FEET WIDE, DESCRIBED IN DECREE OF CONDEMNATION RECORDED IN BOOK 18154 PAGE 157 OFFICIAL RECORDS OF SAID COUNTY; SOUTH 12°52'41" EAST TO THE NORTHERLY LINE OF LOT 62 OF ST. JOHNS SUBDIVISION, AS PER MAP RECORDED IN BOOK 196 PAGE 304 OF MISCELLANEOUS RECORDS IN SAID OFFICE OF THE COUNTY RECORDER; THENCE EASTERLY ALONG SAID NORTHERLY LINE OF LOT 62 TO A POINT DISTANT WESTERLY THEREON 641.74 FEET FROM THE NORTHEAST CORNER OF SAID LOT 62; THENCE SOUTHERLY PARALLEL WITH THE EAST LINE OF SAID LOT 62, A DISTANCE OF 641.74 FEET; THENCE EAST PARALLEL WITH THE SAID NORTH LINE, A DISTANCE OF 641.74 FEET TO SAID EAST LINE; THENCE NORTH THEREON 641.74 FEET TO THE NORTHEAST CORNER OF SAID LOT 62; THENCE NORTHERLY ALONG THE EAST LINE OF SAID RANCHO TO THE INTERSECTION THEREOF WITH THE WEST LINE OF SAID SECTION 19; THENCE CONTINUING ALONG SAID EAST LINE OF SAID RANCHO AND THE WEST LINE OF SAID SECTION 19 TO THE SOUTHWESTERLY CORNER OF LOT 3 OF SAID SECTION 19; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 3 TO THE SOUTHEAST CORNER OF SAID LOT 3; THENCE NORTH 8904846" EAST 674.29 FEET; THENCE NORTH 002'45" WEST 655.95 FEET TO THE SOUTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO FRED RUETHER, ET AL., RECORDED ON JUNE 21, 1924 AS INSTRUMENT NO. 647 IN BOOK 3462 PAGE 7 OF SAID OFFICIAL RECORDS; THENCE NORTH 89049'55" EAST TO THE NORTH -SOUTH CENTER LINE OF SAID SECTION 19; THENCE NORTHERLY THEREON TO A POINT SOUTHERLY THEREON 855 FEET FROM THE SOUTHERLY LINE OF THE SOUTH PACIFIC RAILROAD RIGHT OF WAY (200 FEET WIDE) GRANTED BY ACT OF CONGRESS, APPROVED MARCH 3,1871; THENCE PARALLEL WITH THE LAST MENTIONED SOUTHERLY LINE, SOUTH 81018'20" WEST 1170 FEET TO THE EASTERLY LINE OF THE LAND DESCRIBED AS PARCEL "A", IN THE DEED TO MILTON LUROS, BY DOCUMENT RECORDED ON NOVEMBER 19, 1964 AS INSTRUMENT NO. 1147 IN BOOK D2744 PAGE 167, OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG THE EASTERLY BOUNDARY OF SAID LAST DESCRIBED LAND, SOUTH 0036'26" EAST 713 FEET TO THE SOUTHEAST CORNER OF SAID LAND; THENCE CONTINUING ALONG THE SOUTHERLY AND WESTERLY LINES OF SAID LAST DESCRIBED LAND, SOUTH 81018'20" WEST 500.00 FEET AND NORTH 0°36'26" WEST 1568 FEET TO THE SOUTHERLY LINE OF SAID 200 FOOT RIGHT OF WAY; THENCE WESTERLY AND NORTHERLY ALONG THE SOUTHERLY AND WESTERLY LINES OF SAID 200 FOOT RIGHT OF WAY, TO THE SOUTHERLY LINE OF SAID RIGHT OF WAY, 100 FEET WIDE; THENCE WESTERLY ALONG SAID LAST MENTIONED SOUTHERLY LINE TO THE POINT OF BEGINNING. 9912954-51, ME, NB -APRIL 24, 2000 EXCEPT THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN THE DEED TO W.E. RIDER AND CLARA H. RIDER, RECORDED ON MARCH 17, 1959 AS INSTRUMENT NO. 18181N BOOK D400 PAGE 728 OFFICIAL RECORDS OF SAID COUNTY. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN THE DEED TO HI - SHEAR, A CORPORATION, RECORDED DECEMBER 7, 1964 AS INSTRUMENT NO. 1073 IN BOOK D2723 PAGE 89 OFFICIAL RECORDS OF SAID COUNTY. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND AS DESCRIBED IN THE DEED TO GLASS BOTTLE BLOWERS ASSOCIATION OF THE UNITED STATES AND CANADA, LOCAL 69, BY DOCUMENT RECORDED MARCH 28, 1966 AS INSTRUMENT NO. 615 IN BOOK D3250 PAGE 819 OFFICIAL RECORDS OF SAID COUNTY. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN THE DEED TO PATRICK MULCAHY, ET AL., RECORDED MAY 6, 1966 AS INSTRUMENT NO. 234 IN BOOK D3295 PAGE 964 OFFICIAL RECORDS OF SAID COUNTY, AND RECORDED MAY 6, 1966 AS INSTRUMENT NO. 233 IN BOOK D3295 PAGE 962 OFFICIAL RECORDS OF SAID COUNTY. ALSO EXCEPT THAT PORTION OF SAID LAND DESCRIBED IN THE DEED TO THE CITY OF LOS ANGELES RECORDED SEPTEMBER 25, 1967 AS INSTRUMENT NO. 306 IN BOOK D3777 PAGE 592 OFFICIAL RECORDS OF SAID COUNTY AND REGRANTED IN DEED RECORDED JULY 29, 1980 AS INSTRUMENT NO. 80-722395. ALSO EXCEPT THEREFROM THOSE PORTION OF SAID LAND DESCRIBED IN DEED TO CITY OF LOS ANGELES RECORDED JANUARY 18, 2000 AS INSTRUMENT NO. 00-68140. ALSO EXCEPT THAT PORTION OF SAID LAND INCLUDED WITHIN THE LINES OF THE LAND DESCRIBED IN PARCEL 1 OF THE DEED TO JOSEPH A. HAGER, RECORDED FEBRUARY 9, 1970 AS INSTRUMENT NO. 214 IN BOOK D4628 PAGE 147 OFFICIAL RECORDS OF SAID COUNTY. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN DEED TO THE CITY OF LOS ANGELES RECORDED JUNE 18, 1980 AS INSTRUMENT NO. 80-587072, AND REGRANTED IN DEED RECORDED JULY 29, 1980 AS INSTRUMENT NO. 80-722396 AND RECORDED JUNE 18, 1980 AS INSTRUMENT NO, 80-587061. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND LYING NORTHERLY AND EASTERLY OF THE SOUTHERLY LINE AND THE WESTERLY, NORTHWESTERLY PROLONGATION OF SAID SOUTHERLY LINE OF THE LAND DESCRIBED IN THE DEED OF THE CITY OF LOS ANGELES RECORDED JUNE 18, 1980 AS INSTRUMENT NO. 80-587061. ALSO EXCEPT THEREFROM THE LAND DESCRIBED IN THE DEED RECORDED SEPTEMBER 7, 1984 AS INSTRUMENT NO. 84-1079328. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN DEED RECORDED APRIL 28, 1993 AS INSTRUMENT NO. 93-798471. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND, DESCRIBED IN DEED TO SAUGUS UNION SCHOOL DISTRICT, RECORDED NOVEMBER 15, 1993 AS INSTRUMENT NO. 93-2241143. ALSO EXCEPT FROM THE REMAINDER THEREOF, ANY PORTION INCLUDED WITHIN TRACT 42670-02, AS PER MAP RECORDED APRIL 13, 2000 ON BOOK 1246 PAGE 74 TO 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM FROM A PORTION OF SAID LAND AN UNDIVIDED 3% INTEREST IN AND TO ALL THE OIL, GAS OTHER HYDROCARBON SUBSTANCES AND MINERALS IN, UNDER, AND/OR WHICH MAY BE PRODUCED AND SAVED FROM SAID LAND, TOGETHER WITH THE RIGHT OF INGRESS AND EGRESS AT ALL TIMES FOR THE PURPOSE OF MINING, DRILLING, EXPLORING, OPERATING AND DEVELOPING SAID LAND FOR OIL, OR FOR STORING, HANDLING, TRANSPORTING AND MARKETING SAME; AND THE RIGHT TO REMOVE FROM SAID LAND ALL 9912954-51, ME, NB - APRIL 24, 2000 OF THE GRANTEE'S PROPERTY AND IMPROVEMENTS, AS GRANTED BY BERMITE POWDER COMPANY TO LOS ANGELES HOME COMPANY, A CALIFORNIA CORP., IN DEED RECORDED FEBRUARY 10, 1949 AS INSTRUMENT NO. 852 IN BOOK 29022 PAGE 337 OFFICIAL RECORDS. EXCEPT THEREFROM FROM A PORTION OF SAID LAND AN UNDIVIDED 0.5% INTEREST IN AND TO ALL THE OIL, GAS, OTHER HYDROCARBON SUBSTANCES AND MINERALS IN, UNDER AND/OR WHICH MAY BE PRODUCED AND SAVED FROM SAID LAND, TOGETHER WITH THE RIGHT OF INGRESS AND EGRESS AT ALL TIMES FOR THE PURPOSE OF MINING, DRILLING, EXPLORING, OPERATING AND DEVELOPING SAID LAND FOR OIL, OR FOR STORING, HANDLING, TRANSPORTING AND MARKETING SAME; AND THE RIGHT TO REMOVE FROM SAID LAND ALL OF THE GRANTEE'S PROPERTY AND IMPROVEMENTS, AS GRANTED BY BERMITE POWDER COMPANY TO NORMA COLEMAN, A WIDOW, IN DEED RECORDED FEBRUARY 21, 1949 AS INSTRUMENT NO. 802 IN BOOK 29421 PAGE 270 OFFICIAL RECORDS. ALL RIGHTS OF INGRESS AND EGRESS OVER AND IN AND TO THE SURFACE HAVING BEEN QUITCLAIMED BY NORMAN COLEMAN, IN DEED RECORDED NOVEMBER 22, 1955 AS INSTRUMENT NO. 1753, IN BOOK 49589 PAGE 168 OFFICIAL RECORDS AND QUITCLAIMED BY LOS ANGELES HOME COMPANY, IN DEED RECORDED NOVEMBER 22, 1955 AS INSTRUMENT NO. 1754 IN BOOK 49589 PAGE 395 OFFICIAL RECORDS. ALSO EXCEPT THEREFROM FROM A PORTION OF SAID LAND, 46 Y2% OF ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING IN AND UNDER SAID LAND, AS RESERVED BY BERMITE POWDER COMPANY, IN DEED RECORDED NOVEMBER 22, 1955 AS INSTRUMENT NO. 1755 IN BOOK 49589 PAGE 169 OFFICIAL RECORDS. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED APRIL 10, 1981 AS INSTRUMENT NO. 81-361476. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED APRIL 24, 1981 AS INSTRUMENT NO. 81-410943. PARCEL 2; THAT PORTION OF THE RANCHO SAN FRANCISCO, AS PER MAP RECORDED IN BOOK 1 PAGES 521 AND 522 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THAT CERTAIN COURSE IN THE BOUNDARY LINE OF THE LAND DESCRIBED IN THE DEED TO W.E. RIDER AND WIFE, RECORDED ON MARCH 17, 1959 AS INSTRUMENT NO. 1818 IN BOOK D400 PAGE 728 OFFICIAL RECORDS OF SAID COUNTY, AS HAVING A BEARING AND LENGTH OF NORTH 12°07'01" WEST 644.98 FEET WITH THE SOUTHERLY LINE OF THE SOUTHERN PACIFIC RAILROAD RIGHT OF WAY, 100.00 FEET WIDE; THENCE ALONG THE BOUNDARY LINE OF THE LAND DESCRIBED IN SAID DEED AS FOLLOWS: SOUTH 12007'01" EAST 644.98 FEET AND NORTH 76015'48" EAST 563.49 FEET; THENCE LEAVING SAID BOUNDARY LINE, NORTH 10°30'48" WEST 721.77 FEET TO A POINT IN SAID SOUTHERLY RIGHT OF WAY LINE, DISTANT EASTERLY THEREON 591.83 FEET FROM THE POINT OF BEGINNING; THENCE WESTERLY ALONG SAID SOUTHERLY RIGHT OF WAY LINE, 591.83 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED MARCH 17, 1959 AS INSTRUMENT NO. 1818. 9912954-51, ME, NB - APRIL 24, 2000 EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED NOVEMBER 19, 1964 AS INSTRUMENT NO. 1147. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED APRIL 10, 1981 AS INSTRUMENT NO. 81-361476. PARCEL 2A: AN EASEMENT FOR INGRESS, EGRESS AND UTILITY PURPOSES, TO BE USED IN COMMON WITH OTHERS, OVER THE NORTHERLY 60 FEET OF THE LAND DESCRIBED IN THE DEED TO W.F. RIDER, RECORDED MARCH 17, 1959 AS INSTRUMENT NO. 1818 IN BOOK D400 PAGE 728 OFFICIAL RECORDS. EXCEPT THEREFROM THAT PORTION INCLUDED WITHIN THE LINES OF PARCEL 2 HEREINABOVE. PARCEL 3: THAT PORTION OF SECTION 19, TOWNSHIP 4 NORTH, RANGE 15 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE ON MARCH 29, 1877, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF THE LAND CONVEYED TO CROWN COACH CORPORATION BY PARCEL 1 OF THE DEED RECORDED ON MAY 18, 1960 AS INSTRUMENT NO. 1528 IN BOOK D849 PAGE 936 OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID CORNER BEING IN THE SOUTHERLY LINE OF THE 200 FOOT WIDE RIGHT OF WAY GRANTED TO THE SOUTHERN PACIFIC RAILROAD COMPANY OF CALIFORNIA BY ACT OF CONGRESS APPROVED MARCH 3, 1871 DISTANT THEREON SOUTH 81°18'20" WEST 1170 FEET FROM NORTH -SOUTH CENTER LINE OF SAID SECTION 19; THENCE ALONG SAID SOUTHERLY RIGHT OF WAY LINE SOUTH 81°18'20" WEST 500 FEET; THENCE SOUTH 0036'26" EAST 1568 FEET; THENCE PARALLEL WITH SAID SOUTHERLY LINE NORTH 81018'20" EAST 500 FEET TO THE SOUTHERLY PROLONGATION OF THE WESTERLY LINE OF SAID LAND OF CROWN COACH CORPORATION; THENCE ALONG SAID PROLONGATION AND SAID WESTERLY LINE NORTH 0°3626" WEST 1568 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM THE SOUTHERLY 5 ACRES. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN DEED TO THE CITY OF LOS ANGELES, A MUNICIPAL CORPORATION ON JUNE 18, 1980 AS INSTRUMENT NO. 80- 587061. ALSO EXCEPT THAT PORTION OF SAID LAND LYING WITHIN THE BOUNDARIES OF THE LAND DESCRIBED IN THE DEEDS RECORDED JULY 29, 1980 AS INSTRUMENT NO. 80-722394 AND 80- 722396. ALSO EXCEPT THAT PORTION OF SECTION 19, TOWNSHIP 4 NORTH, RANGE 15 WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE ON MARCH 29, 1877, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF THE LAND CONVEYED TO CROWN COACH CORPORATION BY PARCEL 1 OF THE DEED RECORDED ON MAY 18, 1960 AS INSTRUMENT NO, 1528 IN BOOK D849 PAGE 936 OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID CORNER BEING IN THE SOUTHERLY LINE OF THE 200 FEET WIDE RIGHT OF WAY GRANTED TO THE SOUTHERN PACIFIC RAILROAD COMPANY OF CALIFORNIA BY ACT OF CONGRESS APPROVED MARCH 3, 1871, DISTANT THEREON SOUTH 81°24'05" WEST 9912954-51, ME, NB - APRIL 24, 2000 1170.00 FEET FROM NORTH -SOUTH CENTER LINE OF SAID SECTION 19; THENCE ALONG SAID SOUTHERLY RIGHT OF WAY LINE SOUTH 81°24'05" WEST, 632.87 FEET TO THE EASTERLY LINE OF THE 330 FEET RIGHT OF WAY DEEDED TO THE CITY OF LOS ANGELES DEPARTMENT OF WATER AND POWER RECORDED JUNE 18, 1980 AS INSTRUMENT NO. 80-587072; THENCE SOUTH 11038'39" WEST, ALONG THE EASTERLY LINE OF SAID RIGHT OF WAY 367.94 FEET; THENCE 71038'37" EAST, ALONG THE NORTHEASTERLY LINE OF SAID RIGHT OF WAY 796.15 FEET; THENCE NORTH 0029'52" WEST 735.65 FEET TO THE POINT OF BEGINNING. ALSO EXCEPT FROM THE REMAINDER THEREOF, ANY PORTION INCLUDED WITHIN TRACT 42670-02 AS PER MAP RECORDED APRIL 13, 2000 IN BOOK 1246 PAGES 74 TO 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW THE SURFACE OF SAID LAND; BUT WITH NO RIGHT OF SURFACE ENTRY THERETO, AS PROVIDED IN THE DEED RECORDED NOVEMBER 19, 1964 AS INSTRUMENT NO. 1147 IN BOOK D2704 PAGE 936 OFFICIAL RECORDS. ALSO EXCEPT 50 PERCENT OF ANY AND ALL OIL, GAS, HYDROCARBON SUBSTANCES AND OTHER MINERALS UNDER AND IN SAID LAND INCLUDING THE RIGHT OF SURFACE AND SUBSURFACE ENTRY FOR THE PURPOSE OF ASCERTAINING THE PRESENCE OF AND EXTRACTING ANY SUCH OIL, GAS, HYDROCARBON SUBSTANCES OR OTHER MINERALS, AS RESERVED BY MILTON LURES, IN DEED RECORDED DECEMBER 29, 1967 AS INSTRUMENT NO. 5285 IN BOOK D3876 PAGE 453 OFFICIAL RECORDS. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW THE SURFACE OF SAID LAND; BUT WITH NO RIGHT OF SURFACE ENTRY THERETO, AS PROVIDED IN THE DEED RECORDED FEBRUARY 6, 1970 AS INSTRUMENT NO. 611. PARCEL 4: THAT PORTION OF SECTION 24, TOWNSHIP 4 NORTH, RANGE 16 WEST, RANCHO SAN FRANCISCO, AS PER MAP RECORDED IN BOOK 1 PAGE 521 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BOUNDED NORTHERLY BY THE SOUTHERLY LINE OF THE SOUTHERN PACIFIC RAILROAD RIGHT OF WAY SOUTHERLY OF SOLEDAD CANYON ROAD; BOUNDED SOUTHERLY BY THE NORTHERLY LINE OF ST. JOHN SUBDIVISION, AS PER MAP RECORDED IN BOOK 196 PAGE 304 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; BOUNDED WESTERLY BY THE NORTHEASTERLY LINE OF THE LAND DESCRIBED IN THE DEED TO THE BERMITE POWER COMPANY, RECORDED ON JULY 23, 1951 AS INSTRUMENT NO. 1547 IN BOOK 36817 PAGE 287 OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, NORTHEASTERLY LINE PROLONGED SOUTHEASTERLY AND BOUNDED EASTERLY BY A LINE DESCRIBED AS FOLLOWS: BEGINNING AT POINT OF INTERSECTION OF THE SOUTHERLY LINE OF SAID SOUTHERN PACIFIC RAILROAD RIGHT OF WAY AND THE CENTER LINE OF THE STRIP OF LAND 100 FEET WIDE DESCRIBED IN THE DEED TO THE CITY OF LOS ANGELES, RECORDED IN BOOK 4552 PAGE 178 OF DEEDS RECORDS OF SAID COUNTY; THENCE SOUTH 11°41' EAST ALONG SAID CENTER LINE TO THE SOUTHERLY TERMINUS OF THE LINE DESCRIBED IN SAID DEED AS SOUTH 11°41' EAST, A DISTANCE OF 4869.40 FEET; THENCE SOUTH 26°30' EAST 1309.50 FEET; THENCE ALONG THE CENTER LINE OF THE STRIP OF LAND 100 FEET WIDE, DESCRIBED IN DECREE OF CONDEMNATION, RECORDED IN BOOK 18154 PAGE 157 OFFICIAL RECORDS, RECORDS OF SAID COUNTY, SOUTH 1205241" EAST TO THE NORTHERLY LINE OF SAID ST. JOHN SUBDIVISION. EXCEPT THEREFROM THE FOLLOWING DESCRIBED PARCELS OF LAND LYING WITHIN PARCELS "A" TO "D" INCLUSIVE AS FOLLOWS: 9912954-51, ME, NB - APRIL 24, 2000 PARCEL A: (EXCEPT TO PARCEL 4) THAT PORTION OF SECTION 24, TOWNSHIP 4 NORTH, RANGE 16 WEST, RANCHO SAN FRANCISCO, AS PER MAP RECORDED IN BOOK 1 PAGE 521 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHERLY CORNER OF THE LAND DESCRIBED IN DEED RECORDED ON JULY 23, 1951 AS INSTRUMENT NO. 15471N BOOK 36817 PAGE 287 OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER, SAID POINT BEING IN THE SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD 100 FEET WIDE; THENCE ALONG THE NORTHEASTERLY LINE OF SAID LAND DESCRIBED IN BOOK 36817 PAGE 287, OFFICIAL RECORDS OF SAID COUNTY, SOUTH 35040'25" EAST 1018.00 FEET AND SOUTH 34°58'50" EAST 703.93 FEET TO THE MOST EASTERLY CORNER THEREOF; THENCE NORTH 45042'00" EAST 851.90 FEET TO A POINT ON A NON -TANGENT CURVE CONCAVE EASTERLY AND HAVING A RADIUS OF 500 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 42°33'47" WEST; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 52044'57" AND ARC DISTANCE OF 460.32 FEET; THENCE TANGENT TO SAID CURVE NORTH 5018'44" EAST 118.48 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 600 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32°41'21" AN ARC DISTANCE OF 342.32 FEET; THENCE TANGENT TO SAID CURVE NORTH 27°22'37" WEST TO SAID SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD 100 FEET WIDE; THENCE WESTERLY ALONG SAID RIGHT OF WAY TO THE POINT OF BEGINNING. PARCEL B: (EXCEPTION TO PARCEL 4) THAT PORTION OF THE RANCHO SAN FRANCISCO, AS SHOWN ON MAP RECORDED IN BOOK 1 PAGES 521 AND 522 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD (100 FEET WIDE) WITH THE WESTERLY SIDE LINE OF THAT CERTAIN STRIP OF LAND (100 FEET WIDE) DESCRIBED IN DEED RECORDED ON MAY 15, 1911 AS INSTRUMENT NO. 1543 IN BOOK 4552 PAGE 178 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE SOUTH 11040'27" EAST ALONG SAID WESTERLY SIDE LINE 618.98 FEET TO AN ANGLE POINT IN SAID LINE; THENCE CONTINUING ALONG SAID WESTERLY LINE SOUTH 26°28'50" EAST 665.00 FEET; THENCE SOUTH 63°31'10" WEST 806.65 FEET; THENCE NORTH 13°42'18" WEST 1228.58 FEET, MORE OR LESS, TO A POINT IN SAID SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD, DISTANT THEREON 750.00 FEET SOUTHWESTERLY FROM THE POINT OF BEGINNING; THENCE NORTH 58031'40" EAST ALONG SAID SOUTHERLY RIGHT OF WAY LINE 750.00 FEET TO THE POINT OF BEGINNING. BASIS OF BEARING BEING THAT CERTAIN COURSE IN THE SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD AS SHOWN ON COUNTY SURVEYOR'S MAP NO. B-2238-1 ON FILE IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, HAVING A BEARING OF NORTH 58031'40" EAST. PARCEL C: (EXCEPTION TO PARCEL 4) THAT PORTION OF THE RANCHO SAN FRANCISCO, AS SHOWN ON MAP RECORDED IN BOOK 1 PAGES 521 AND 522 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD, 100.00 FEET WIDE, WITH THE WESTERLY LINE OF PARCEL 1, IN DEED TO STANLEY C. KRAMER, RECORDED MARCH 17, 1960 AS INSTRUMENT NO. 572 IN BOOK D783, OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID WESTERLY LINE SOUTH 13056'46" EAST 67.21 FEET TO THE "TRUE POINT OF BEGINNING"; THENCE CONTINUING ALONG SAID WESTERLY LINE SOUTH 13036'46" EAST 630.00 FEET; THENCE SOUTH 58037'12" WEST 9912954-51, ME, NB - APRIL 24, 2000 215.31 FEET; THENCE NORTH 36°02'48" WEST 211.37 FEET TO A POINT, SAID POINT BEING THE BEGINNING OF A CURVE CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 292.00 FEET, A RADIAL LINE OF SAID POINT BEARS SOUTH 36002'48" EAST; THENCE NORTHEASTERLY, NORTHERLY AND NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 85020'00" AN ARC LENGTH OF 434.89 FEET; THENCE TANGENT TO SAID CURVE NORTH 31022'48" WEST 73.25 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 25.00 FEET; THENCE NORTHWESTERLY, NORTHERLY AND NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90000'00" AN ARC DISTANCE OF 39.27 FEET TO LINE THAT IS PARALLEL WITH AND DISTANT 64.00 FEET SOUTHEASTERLY MEASURED AT RIGHT ANGLES FROM SAID SOUTHERLY RIGHT OF WAY LINE; THENCE ALONG SAID PARALLEL LINE NORTH 58037'12" EAST 131.51 FEET TO THE "TRUE POINT OF BEGINNING". PARCEL D: (EXCEPTION TO PARCEL 4) THOSE PORTIONS LYING WITHIN THE BOUNDARIES OF PARCEL MAP NO. L.A. 8842, FILED IN BOOK 89 PAGES 46 AND 47 OF PARCEL MAPS OF SAID LOS ANGELES COUNTY. ANY PORTION LYING WITHIN TRACT NO. 38936 AS PER MAP RECORDED IN BOOK 1028 PAGES 1 AND 2 OF MAPS. ANY PORTION LYING WITHIN REDVIEW DRIVE, GOLDEN TRIANGLE OR GOLDEN OAK THAT IS SITUATED WITHIN PARCEL 10. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED APRIL 10, 1981 AS INSTRUMENT NO. 81-361476. ALSO EXCEPT THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE THEREOF; BUT WITH NO RIGHT OF SURFACE ENTRY, AS PROVIDED IN THE DEED RECORDED APRIL 24, 1981 AS INSTRUMENT NO. 81-410943. PARCEL4A: A NON-EXCLUSIVE EASEMENT OF INGRESS, EGRESS AND UTILITY PURPOSES, OVER THE NORTHERLY 60 FEET, MEASURED AT RIGHT ANGLES TO THE NORTHERLY LINE THEREOF, OF THAT PORTION OF THE RANCHO SAN FRANCISCO, AS PER MAP RECORDED IN BOOK 1 PAGE 521 OF PATENTS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHERLY RIGHT OF WAY LINE OF SOUTHERN PACIFIC RAILROAD (100 FEET WIDE) WITH THE WESTERLY SIDE LINE OF THAT CERTAIN STRIP OF LAND (100 FEET WIDE), DESCRIBED IN DEED RECORDED MAY 15, 1911 AS INSTRUMENT NO. 1543 IN BOOK 4522 PAGE 178 OF DEEDS; THENCE SOUTH 11°40'27" EAST ALONG SAID WESTERLY SIDE LINE 618.98 FEET TO AN ANGLE POINT IN SAID SIDE LINE; THENCE CONTINUING ALONG SAID WESTERLY SAID LINE SOUTH 26028'50" EAST 665.00 FEET; THENCE SOUTH 63031'10" WEST 860.65 FEET; THENCE NORTH 13042'18" WEST 1228.58 FEET, MORE OR LESS, TO A POINT IN SAID SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD, DISTANT THEREON 750 FEET SOUTHWESTERLY FROM THE POINT OF BEGINNING; THENCE NORTH 58031'40" EAST ALONG SAID SOUTHERLY RIGHT OF WAY LINE 750 FEET TO THE POINT OF BEGINNING. BASIS OF BEARING THAT CERTAIN COURSE IN THE SOUTHERLY RIGHT OF WAY LINE OF THE SOUTHERN PACIFIC RAILROAD, AS SHOWN ON COUNTY SURVEYOR'S MAP NO. 82238-1, ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAID COUNTY, HAVING A BEARING OF NORTH 58031'40" EAST, AS RESERVED BY GOLDEN TRIANGLE INDUSTRIAL PARK, A LIMITED 9912954-51, ME, NB - APRIL 24, 2000 PARTNERSHIP, IN DEED RECORDED MARCH 17, 1960 AS INSTRUMENT NO. 572 IN BOOK D783 PAGE 783 OFFICIAL RECORDS. SAID EASEMENT IS APPURTENANT TO PARCEL 4 ABOVE MENTIONED. PARCEL 5: LOTS 1 THROUGH 11 INCLUSIVE OF TRACT 42670-02 AS PER MAP RECORDED APRIL 13, 2000 IN BOOK 1246 PAGES 74 TO 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. OFFICIAL BALLOT CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 99-1 (SANTA CLARITA BUSINESS PARK) SPECIAL ELECTION APRIL 25, 2000 To vote, mark a cross (+) or check (d) in the voting square after the word "YES" or after the word "NO." All marks otherwise made are forbidden. This ballot is provided to Spirit Properties, Ltd., as owner or authorized representative of an owner of land within the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) and represents 250 votes. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the Cj of Santa Clarita at 23920 Valencia Boulevard, Santa Clarita, California 91355-2196.. N PROPOSITION A: Shall the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) prioritize the use of bond proceeds for certain authorized facilities, namely, Golden Valley Road Phases II and III and storm drain facilities, shall it amend the rate and method of apportionment by, among other things, reducing the maximum special tax, all as provided in Resolution No. CFD 99-1- , and shall it reduce the amount of authorized indebtedness of the CFD from the maximum aggregate principal amount of $33,000,000, to the maximum aggregate principal amount of $18,000,000? ww�" .. „. °YES~ ` . 01.WOO NO