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HomeMy WebLinkAbout03-76 - Resolutions RESOLUTION NO. 03-76 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, RECOMMENDING ADOPTION OF AN ORDINANCE AUTHORIZING THE CITY OF RANCHO CUCAMONGATO AMEND THE EXISTING DEVELOPMENT AGREEMENT NO. 01-02, TO PROVIDE ASSURANCE THAT MAJOR DEPARTMENT STORE PARCELS WITHIN THE VICTORIA GARDENS REGIONAL CENTER WILL NOT EXPERIENCE INCREASED MELLO ROOS TAXES ASSOCIATED WITH COMMUNITY.FACILITIES DISTRICT 2003-01 A. Recitals. 1. Victoria Gardens-C, L.L.C. requested an amendment to Development Agreement No. 01-02, as described in the title of this Resolution. Hereinafter in this Resolution, the subject Development Agreement Amendment is referred to as "the application." 2. On May 28, 2003, the Planning Commission of the City of Rancho Cucamonga conducted a duly noticed public hearing on the application and concluded said hearing on that date. 3. On February 20, 2002, the City Council entered into Development Agreement No. 01-02 with Victoria Gardens-C, L.L.C. for the Victoria Gardens Regional Center and has amended said Development Agreement once. 4. The subject property of the Development Agreement Amendment is legally described herein. 5. A true and correct copy of the proposed Development Agreement Amendment is attached as Exhibit "A" to the attached Draft Ordinance. 6. All legal prerequisites prior to the adoption of this Resolution have occurred. B. Resolution. NOW, THEREFORE, it is hereby found, determined, and resolved by the Planning Commission of the City of Rancho Cucamonga as follows: 1. This Commission hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Resolution are true and correct. 2. This Commission hereby specifically finds that the Development Agreement Amendment conforms to the General Plan of the City of Rancho Cucamonga. 3. The City Council adopted a Project Environmental Impact Report(EIR)as environmental clearance for the various agreements and entitlements associated with the Victoria Gardens Regional Center including Development Agreement DA01-02. The subject Development Agreement Amendment is consistent with the scope of work and type of development analyzed by the Project EIR. Furthermore, there have been no changes in the circumstances surrounding the project nor has new information surfaced to indicate that the project would have substantial environmental impacts beyond those discussed in the EIR. Therefore, no subsequent or supplemental EIR is necessary based upon the findings as follows: PLANNING COMMISSION RESOLUTION NO. 03-76 SECOND AMENDMENT DA 01-02 —VICTORIA GARDENS-C, L.L.C. May 28, 2003 Page 2 a. The amendment is within the scope of that evaluated by the Project Environmental Impact Report for the Victoria Gardens Master Plan, Development Agreement,Tentative Parcel Map, and Development Disposition Agreement as certified by the City Council on February 20,2002(State Clearinghouse No. 20010301028); and b. There have been no substantial changes made either to the project or the circumstances surrounding the project since the City Council certified the Project Environmental Impact Report on February 20, 2002; and C. No new information of substantial importance has arisen since the Project EIR was certified to indicate that the project will have significant effects not discussed in the El or that the mitigation measures imposed are infeasible. 4. This Commission hereby recommends approval of the Development Agreement Amendment as presented in the Staff Report and in the attached Ordinance subject to each and every condition set forth below. Planning Division: 1) All conditions associated with Development Agreement No. DA 01-02 shall be in full force and affect. 5. The Secretary to this Commission shall certify to the adoption of this Resolution. APPROVED AND ADOPTED THIS 28TH DAY OF MAY 2003. PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA e BY: La cNiel, Chairman ATTEST: �'N B S I, Brad Buller, Secretary of the Planning Commission of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly and regularly introduced, passed, and adopted by the Planning Commission of the City of Rancho Cucamonga, at a regular meeting of the Planning Commission held on the 28th day of May 2003, by the following vote-to-wit: AYES: COMMISSIONERS: FLETCHER, MACIAS, McNIEL, McPHAIL, STEWART NOES: COMMISSIONERS: NONE ABSENT: COMMISSIONERS: NONE ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF RANCHO CUCAMONGA CALIFORNIA, APPROVING THE SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 01-02, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF RANCHO CUCAMONGA AND VICTORIA GARDENS-C, L.L.C. IN ORDER TO PROVIDE ASSURANCE THAT MAJOR DEPARTMENT STORE PARCELS WITHIN THE VICTORIA GARDENS REGIONAL CENTER WILL NOT EXPERIENCE INCREASED MELLO ROOS TAXES ASSOCIATED WITH COMMUNITY FACILITIES DISTRICT 2003-01 A. Recitals. 1. California Government Code Section 65864 now provides, in pertinent part, as follows: .The Legislature finds and declares that: a) The lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other developments to the consumer, and discourage investment in and commitment to comprehensive planning, which would make maximum efficient utilization of resources at the least economic cost to the public. b) Assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules . and regulations, and subject to conditions of approval, will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs of development. 2. California Government Code Section 65865 provides, in pertinent part, as follows: "Any city...may enter into a Development Agreement with any person having a legal or equitable interest in real property for the development of such property as provided in this article..." 3. California Government Code Section 65865.2 provides, in part, as follows: "A Development Agreement shall specify the duration of the Agreement, the permitted uses of the property, the density of intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The Development Agreement may include conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that such conditions, terms, restrictions, and requirements for discretionary actions shall not prevent development of the land for the uses and to the density of intensity of development set forth in the Agreement..." 4. Attached to this Ordinance, Exhibit "A" and incorporated herein by this reference is the proposed amendment to Development Agreement 01-02, concerning that property generally bounded by future Church Street to the north, Foothill Boulevard to the south, the 1-15 Freeway to the east, and the future Day Creek Boulevard to the west as legally described in the current CITY COUNCIL ORDINANCE DA 01-02, AMENDMENT NO. 2 -VICTORIA GARDENS-C, L.L.C. June 4, 2003 Page 2 Development Agreement. Hereinafter in this Ordinance and the Development Agreement amendment attached hereto as Exhibit "A" is referred to as the "Amendment." 5. On May 28, 2003, the Planning Commission of the City of Rancho Cucamonga held a duly noticed public hearing concerning the Development Agreement amendment and concluded said hearing on that date and recommended approval through adoption of Resolution No. 03-76. 6. On June 4, 2003, the City Council of the City of Rancho Cucamonga conducted a duly noticed public hearing concerning the Development Agreement amendment. 7. All legal prerequisites prior to the adoption of this Ordinance have occurred. B. Ordinance. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga does hereby find, determine, and ordain as follows: SECTION 1: This Council hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Ordinance are true and correct. SECTION 2: On February 20, 2002, this Council reviewed an Environmental Impact Report and certified said report as legally sufficient for the Victoria Gardens Regional Center project. SECTION 3: It is expressly found that the public necessity, general welfare, and good zoning practice require the approval of the Development Agreement amendment. SECTION 4: This Council hereby approves the amendment to Development Agreement 01-02, attached hereto as Exhibit "A." SECTION 5: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within 15 days after its passage at least once in the Inland Valley Daily Bulletin, a newspaper of general circulation published in the City of Ontario, California, and circulated in the City of Rancho Cucamonga, California. -- DRAFT -- SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BY AND. BETWEEN THE CITY OF RANCHO CUCAMONGA AND VICTORIA GARDENS-C, L.L.C. THIS SECOND AMENDMENT TO DEVELOPMENT AGREEMENT ( "Second Amendment" ) is made and entered into as of this _th day of , 2003 , by and between the CITY OF RANCHO CUCAMONGA, a municipal corporation and general law city ("City" ) , and VICTORIA GARDENS-C, L.L.C. , a California limited liability company ( "Owner" ) . For a valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Owner hereby amend that certain Development Agreement between them dated February 20 , 2002 , as previously amended by that certain First Amendment to Development Agreement dated , 2003 (as amended, the "Amended Development Agreement" ) , to add a new Section III .B. 5 reading as follows : "Special Covenant of the City. In order to facilitate the development of the `major' retail stores within the Project, the City hereby covenants and agrees as follows on behalf of itself and on behalf of the Community Facilities District No. 2003- 01 of the City of Rancho Cucamonga (the `CFD' ) : (1) except with the unanimous written consent of the affected landowners, neither the City nor the CFD will initiate proceedings under Section 53331 of the California Government Code or other similar applicable provision to alter the rate or method of apportionment of the special tax affecting any property designated as Privately Owned Specific Retail Property under that certain Notice of Special 122313.3 1 Tax Lien dated as of March 6, 2003 and recorded in the Official Records of San Bernardino County, California on March 6, 2003 as Document No. 2003-0148262 , a copy of which is attached hereto as Exhibit `A2 ' (the `RMA' ) ; and (2) except with the unanimous written consent of the affected landowners, the CFD will abandon, pursuant to the provisions of Section 53338 of the California Government Code, any proceedings initiated pursuant to the provisions of Sections 53332-53338 of the California Government Code which would result in an alteration of the rate or method of apportionment of the special tax affecting any property designated as Privately Owned Specific Retail Property under the RMA. " Exhibit "A2" attached to this Second Amendment is hereby added and incorporated into the Amended Development Agreement as Exhibit "A2" thereto. In order to comply with Section 65868 . 5 of the Government Code, the parties do hereby direct the City Clerk to record a copy of this Second Amendment against the Property described in Exhibit "Al" attached to this Second Amendment with the County Recorder of San Bernardino County within ten (10) days after the Effective Date . Except for the addition of Section III .B. S and Exhibit "A2" as set forth above, the Amended Development Agreement remains unmodified and in full force and effect . IN WITNESS WHEREOF, Owner and City have executed this Agreement as of the date first hereinabove written. 122313.3 2 "City" CITY OF RANCHO CUCAMONGA, a municipal corporation By: Mayor ATTEST: City Clerk Approved as to Form: By: City Attorney "Owner" VICTORIA GARDENS-C, L.L.C. , a California limited Liability company By: Its : 4� 122313.3 3 STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On 2003 , before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signature (s) on the instrument the person (s) , or the entity upon behalf of which the person (s) acted, executed the within instrument . WITNESS my hand and official seal . (i) Notary Public STATE OF CALIFORNIA ) ss . COUNTY OF ) On 2003 , before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signature (s) on the instrument the person (s) , or the entity upon behalf of which the person (s) acted, executed the within instrument . WITNESS my hand and official seal . Notary Public 122313.3 4 EXHIBIT "Al" LEGAL DESCRIPTION OF PROPERTY APPROXIMATELY 165 ACRES IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, GENERALLY BOUNDED BY DAY CREEK BOULEVARD, FOOTHILL BOULEVARD, I-15 FREEWAY, AND CHURCH STREET [FULL LEGAL DESCRIPTION TO BE PROVIDED PRIOR TO RECORDATION] 122313.3 1 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT No. 2003-01 IMPROVEMENT AREA NOS. 1 AND 2 February 6, 2003 COMMUNITY FACILITIES DISTRICT REPORT MELLO-Roos COMMUNITY FACILITIES ACT OF 1982 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 February 6, 2003 Prepared for Prepared by CITY OF RANCHO CUCAMONGA DAVID TAUSSIG& ASSOCIATES, INC. 10500 Civic Center Drive 1301 Dove Street, Suite 600 P.O. Box 807 Newport Beach, California 92660 Rancho Cucamonga, California 91729 (949) 955-1500 TABLE OF CONTENTS Section Page I. INTRODUCTION ............................................................................................................... 1 II. PROJECT DESCRIPTION................................................................................................... 2 III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES.................................. 3 A. Description of Proposed Public Improvements .............................................. 3 B. Estimated Cost of Proposed Bond Financed Public Improvements ............. 4 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES. ................................................. 5 A. Projected Bond Sales ......................................................................................... 5 B. Incidental Bond Issuance Expenses to be Included in the Proposed BondedIndebtedness.............................:........................................................... 5 C. Incidental Expenses to be Included in the Annual Levy of Special Taxes ... 5 V. RATE AND METHOD OYAPPORTIONMENT OF THE SPECIAL TAX....................................6 A. Explanation for Special Tax Apportionment.................................................. 6 B. Assigned and Maximum Special Tax Rates..................................................... 7 C. Backup Special Tax........................................................................................... 8 D. Accuracy of Information................................................................................... 8 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT.................................................... 9 VII. GENERAL TERMS AND CONDITIONS...............................................................................10 A. Substitution Facilities........................................................................................10 B. Review/Appeals..................................................................................................10 C. Prepayment of Special Tax ...............................................................................10 EXHIBITS Exhibit A-1 Rate and Method of Apportionment Improvement Area 1 Exhibit A-2 Rate and Method of Apportionment Improvement Area 2 Exhibit B-1 Assigned Special Taxes for Developed Property in Improvement Area 1 Exhibit B-2 Assigned Special Taxes for Developed Property in Improvement Area 2 Exhibit C-1 Maximum Special Taxes for Undeveloped Property in Improvement Area 1 Exhibit C-2 Maximum Special Taxes for Undeveloped Property in Improvement Area 2 Exhibit D Boundary Maps I. INTRODUCTION WHEREAS, the City Council of the City of Rancho Cucamonga (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 "Report" with the legislative body of the proposed community facilities district. This community facilities district being City of Rancho Cucamonga Community Facilities District No. 2003-01 shall hereinafter be referred to as: "CFD No. 2003-01"; and, WHEREAS, A Resolution of Intention of the City Council of the City of Rancho Cucamonga to Establish City of Rancho Cucamonga Community Facilities District No. 2003-01 and to Authorize the Levy of a Special Tax within City of Rancho Cucamonga Community Facilities District No. 2003-01 (the 'Resolution of Intention"), adopted by the Council on December 18, 2002, did direct that the Report generally contain the following: 1. A brief description of the public facilities by type which will be required to adequately meet the needs of CFD No. 2003-01; and 2. An estimate of the fair and reasonable cost of financing the public facilities, including incidental expenses and including the costs of the proposed bond financing and all other related costs.as provided in Section 53345.3 of the Act. NOW, THEREFORE, I, Larry Temple, Administrative Services Director, the authorized representative of the City of Rancho Cucamonga and the appointed responsible officer 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 Rancho Cucamonga Page 1 CFD No. 2003-01 February 6, 2003 II. PROJECT DESCRIPTION The purpose of CFD No. 2003-01 is to finance the construction of certain public facilities which benefit the property proposed for development within the boundaries of the City of Rancho Cucamonga (hereinafter referred to as the "City") and to pay incidental expenses incurred in connection therewith. Public facilities that may be financed by CFD No. 2003-01 are described in Section III below. CFD No. 2003-01 is divided into two improvement areas, which are subsequently subdivided into zones. Improvement Area 1 consists of three zones, amounting to approximately 146.78 gross acres. Of this acreage, approximately 18.54 acres in Zone 1 are expected to be developed into uses subject to a Mello-Roos special tax levy. At buildout, it is currently expected that Zone I will contain approximately 411 residential dwelling units. In Zone 2, approximately 26.81 acres are expected to be developed into commercial uses subject to a Mello-Roos special tax levy. Finally, Zone 3 will have approximately 13.37 acres developed into commercial uses subject to a Mello-Roos special tax levy. Improvement Area 2 consists of two zones, amounting to approximately 82.08 gross acres. Of this acreage, approximately 31.66 acres in Zone 1 and 17.19 acres in Zone 2 are expected to be .developed into commercial uses subject to a Mello-Roos special tax levy. City of Rancho Cucamonga Page 2 CFD No. 2003-01 February 6, 2003 III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES A. Description of Proposed Public Improvements A community facilities district may provide for the purchase, construction, expansion, improvement, 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 community facilities district 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 community facilities district. The public facilities shown below are proposed to be financed by CFD No. 2003-01. The cost of the public facilities shall include the attributable costs of engineering, design, planning, inspection, management and coordination, together with the expenses related to the issuance and sale of any special tax bonds, including underwriters' discount, appraisals, reserve find, capitalized interest, bond counsel, special tax consultant, bond and official statement printing and all other expenses incidental thereto. The public facilities shall be constructed pursuant to the plans and specifications approved by the City and the officials thereof, including the City Engineer. Facilities in Connection with Improvement Area Nos. 1 and 2 Victoria Gardens Lane(and vicinity) Improvements Street Improvements Storm Drain Improvements Domestic Water Improvements Landscape Improvements Dry Utilities Improvements Right-of-Way Acquisition Foothill Boulevard (and vicinity) Improvements Street Improvements Storm Drain Improvements Sanitary Sewer Improvements Domestic Water Improvements Landscape Improvements Dry Utilities Improvements North Parkway Sidewalk Right-of-Way Acquisition Other Improvements Serving Properties Located within CFD No. 2003-01 Dry Utilities Improvements City of Rancho Cucamonga Page 3 CFD No. 2003-01 February 6, 2003 Facilities in Connection with Improvement Area No. 1 Only Domestic Water Improvements Sewer Improvements Civic Center/Cultural Center Community Facilities School Improvements The preceding facilities are all facilities which the legislative body creating CFD No. 2003- 01 is authorized, pursuant to an agreement meeting the requirements of Section 53316.2 of the Act or otherwise, to own, construct, or finance, and which are required to adequately meet the needs of CFD No. 2003-01. Because the actual facilities necessary to serve development within CFD No. 2003-01 may differ from those currently anticipated, CFD No. 2003-01 reserves the right to modify the actual facilities proposed herein to the extent CFD No. 2003-01 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 Rate and Method of Apportionment of the Special Tax for CFD No. 2003-01. B. Estimated Cost of Proposed Bond Financed Public Improvements CFD No. 2003-01 is expected to issue two (2) Bond series to finance the purchase, construction, expansion, improvement, or rehabilitation of the authorized facilities. The total amount of construction proceeds to be generated from the Bonds is projected to be approximately$11.7 million in Improvement Area No. 1, and $2.3 million in Improvement Area No. 2. These amounts are estimates and subject to change. 'Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Rate and Method of Apportionment. City of Rancho Cucamonga Page 4 CFD No. 2003-01 February 6, 2003 I IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES A. Projected Bond Sales The maximum authorized bonded indebtedness for CFD No. 2003-01 is $16,000,000 in Improvement Area No. 1 and $4,000,000 in Improvement Area No. 2. 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 legal, fiscal, and financial consultant fees; bond and other reserve funds; underwriter's discount; 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 counsel, disclosure counsel, and printing costs. For the bonds proposed to be issued for Improvement Area I and Improvement Area 2 by CFD No. 2003-01, capitalized interest is currently estimated at approximately 9.92 percent, the reserve fund at 10.0 percent, all other incidental bond issuance expenses at 3.21 percent of the face amount of the bonds. Actual bond issue assumptions will vary from the above estimates. C. Incidental Expenses 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 construction, completion, and inspection of the authorized work. While the actual cost of administering CFD No. 2003-01 may vary, it is anticipated that the amount of special taxes which can be collected will be sufficient to fund at least $50,000 in annual administrative expenses. City of Rancho Cucamonga Page 5 CFD No. 2003-01 February 6, 2003 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX All of the property located within CFD No. 2003-01, unless exempted by law or by the Rate and Method of Apportionment for each Improvement Area, shall be taxed for the purpose of providing necessary facilities to serve CFD No. 2003-01. 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 Exhibits A-1 and A-2, the adopted Rate and Method of Apportionment for each Improvement Area provides information sufficient to allow each property owner within CFD No. 2003-01 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 Rate and Method of Apportionment of the Special Tax for each Improvement Area of CFD No. 2003-01. 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. Additionally, geographic location of property may be considered and different tax rate zones or areas defined. Specific Special Tax levels are assigned to each land use class within each tax rate zone, with all parcels within a land use class for each tax rate zone, 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 insure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 2003-01. The major assumption inherent in the Special Tax rates set forth in each Rate and Method of Apportionment is that the level of benefit received from the proposed public facilities is City of Rancho Cucamonga Page 6 CFD No. 2003-01 February 6, 2003 a function of land use and/or product type. This assumption is borne out through an examination of commonly accepted statistical measures for public facility usage. 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. Larger buildings typically generate a greater number of trip-ends than do smaller buildings, and therefore, will tend to receive more benefit from road grading, road landscaping and road improvements. Drainage and flood control requirements generally vary with the amount of impervious ground cover per parcel. It follows that larger lots have more impervious ground cover which will create more drainage flows than that of smaller lots. Another example is sewer treatment costs, which are based on plant capacity to treat biochemical oxygen demand (BOD), suspended solids (SS), and the flow rate, all of which vary based on land use. Other variables for water and sewer requirements include storage and fire flow requirements, as well as the number of bathrooms and fixture units, which tend to vary with the size of the lot and the size of the building. Therefore, separate Special Tax rates have been established for each Zone within an Improvement Area, based on the anticipated residential and non-residential land use classes within each Zone. In addition, in order to insure fairness, the Special Tax rates are uniformly applied within each Zone, and are,based on the acreage of a parcel. As a result, the Special Tax for a parcel of Residential Property or Non-Residential Property in both Improvement Area Nos. I and 2 will be based on (i) the specific Zone in which the parcel is located, and (ii) the acreage of the parcel. Based on the types of public facilities that are proposed for CFD No. 2003-01 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. 2003-01 can be considered to be fair and reasonable. B. Assigned and Maximum Special Tax Rates Exhibits B-1 and B-2 list the Assigned Special Taxes that may be levied against Developed Property in each Zone within each Improvement Area of CFD No. 2003-01. Exhibits C-1 and C-2 list the Maximum Special Taxes that may be levied against Undeveloped Property in each Zone within each Improvement Area of CFD No. 2003-01. Maximum Special Tax rates cannot exceed the Assigned Special Tax rates shown in Exhibits B-1 and B-2, except when the Backup Special Tax is used as discussed in Section C below. The Council will annually determine the actual amount of the Special Tax levy in each Zone of each Improvement Area, subject to the methodology and Maximum Special Taxes set forth in each Rate and Method of Apportionment. The Council will levy a Special Tax to the extent necessary to meet the Special Tax requirement for each Zone. City of Rancho Cucamonga Page 7 CFD No. 2003-01 February b, 2003 C. Backup Special Tax Should the taxable acreage within any Improvement Area of CFD No. 2003-01 fall significantly below the level projected in the current development plans, pursuant to the Rate and Method of Apportionment for each Improvement Area, it may be necessary to levy the Maximum Special Tax using the Backup Special Tax pursuant to Section C of each 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 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), as identified in Exhibits CA and C-2. D. Accuracy of Information In order to establish the Special Taxes for each Improvement Area of CFD No. 2003-01 as set forth.in each 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 each Rate and Method of Apportionment for CFD No. 2003-01, including the inability to meet the financial obligations of CFD No. 2003-01. City of Rancho Cucamonga Page 8 CFD No. 2003-01 February 6, 2003 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of CFD No. 2003-01 include all land on which the Special Taxes maybe levied. A map of the area included within each Improvement Area of CFD No. 2003-01 is provided as Exhibit D. City of Rancho Cucamonga Page 9 CFD No. 2003-01 February 6, 2003 VII. GENERAL TERMS AND CONDITIONS A. Substitution 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 of 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. B. Review/Appeals As fully described in Section F of each Rate and Method of Apportionment, any landowner who believes that the amount of the Special Tax is in error may file a notice with CFD No. 2003-01 appealing the levy of the Special Tax. As appropriate, a representative of CFD No. 2003-01 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 Special Tax levy may be corrected by the Review/Appeal Committee or its designee. C. Prepayment of Special Tax The Special Tax applicable to an Assessor's Parcel of Developed Property may be prepaid according to the prepayment provisions in each Rate and Method of Apportionment. K:\Ciienm2\RaMhoCocamooga\V icmiiaGanirns\CFD_RPT3.doc City of Rancho Cucamonga Page 10 CFD No. 2003-01 February 6, 2003 EXHIBIT A-1 RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA 1 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-01 OF THE CITY OF RANCHO CUCAMONGA IMPROVEMENT AREA NO. 1 A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community Facilities District No. 2003-01 (Improvement Area No. 1) ("CFD No. 2003-01 (IA No. 1)") and collected each Fiscal Year commencing in Fiscal Year 2003-04, in an amount determined by the Council through the application of the appropriate Special Tax within each Zone for "Developed Property" and "Undeveloped Property" as described below. All of the real property in CFD No. 2003-01 (IA No. 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. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an 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 map or plan recorded with the County. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "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.2003-01 (IA No. 1):the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules(whetherbythe City, a 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. 2003-01 (IA No. 1) or any designee of either thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2003-01 (IA No. 1)or any designee of either thereof of complying with City,CFD No.2003- 01 (IA No. 1) or obligated persons disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;the costs of the City,of CFD No. 2003-01 (IA No. 1)or any designee of either thereof related to an appeal of the Special Tax;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. 2003-01 (IA No. 1) for any other administrative purposes of CFD No. 2003-01 (IA No. 1), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Rancho Cucamonga March 10, 2003 "Administrative Special Tax Requirement" means, for any Fiscal Year, that amount estimated to be required to: (i)payperiodic costs on the CFD No.2003-01 (IA No. 1)Bonds other than regularly scheduled debt service, including but not limited to,credit enhancement and rebate payments on the CFD No. 2003-01 (IA No. 1)Bonds as described in the Indenture and due in the calendar year beginning in said Fiscal Year; and (ii) pay Administrative Expenses. "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 Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Authorized Facilities" means those improvements, as listed on Exhibit "A" to the Resolution of Formation. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for each Zone and providing for the levy and collection of the Special Taxes. "CFD No. 2003-01" means City of Rancho Cucamonga Community Facilities District No. 2003-01 (Victoria Gardens). "CFD No. 2003-01 (IA No. 1)" means Improvement Area No. 1 of CFD No. 2003-01, as identified on the boundary map for CFD No. 2003-01. "CFD No.2003-01 (IA No. 1)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.2003-01 and secured solely by Special Taxes levied on property within the boundaries of CFD No. 2003-01 (IA No. 1) under the Act. "City" means the City of Rancho Cucamonga. "Council" means the City Council of the City of Rancho Cucamonga, acting as the legislative body of CFD No. 2003-01 (IA No. 1). "County" means the County of San Bernardino. "Disposition and Development Agreement" means the Disposition and Development Agreement by and between the Rancho Cucamonga Redevelopment Agency and Victoria Gardens-C, LLC dated February 20, 2002. City of Rancho Cucamonga March 10, 2003 CFD No. 2003-01 (IA No. 1) Page 2 "Developed Propertymeans, for each Fiscal Year, all Taxable Property which (i) was within a Final Map that was recorded prior to January 1 of the previous Fiscal Year, and(ii) for which a building permit for new construction, other than the construction of a garage, parking lot,parking structure or street,was issued after January 1,2002 but prior to January 1 of the previous Fiscal Year. "Final Map" means a final map, lot line adjustment, or parcel map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)and recorded with the County Recorder that creates individual lots for which building permits may be issued. The term "Final Map" shall not include any Assessor's Parcel Map or subdivision map or portion thereof,that does not create individual lots for which a building permit may be issued, including Assessor's Parcels that are designated as remainder parcels. "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 CFD No. 2003-01 (lA No. 1) Bonds are issued, as modified, amended and/or supplemented from time to time. "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. "Outstanding Zone 1 Bonds" means(a)the product of(i)the original principal amount of the CFD No.2003-01 (IA No. 1)Bonds minus the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been paid at maturity, or been redeemed or defeased other than from prepayments of Special Taxes; and(ii)the Zone 1 Allocation, minus (b)the principal amount of the CFD No. 2003-01 (IA No. 1)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 1. "Outstanding Zone 2 Bonds" means(a)the product of(i)the original principal amount of the CFD No.2003-01 (1A No. 1)Bonds minus the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been paid at maturity, or been redeemed or defeased other than from prepayments of Special Taxes; and (ii)the Zone 2 Allocation,minus (b) the principal amount of the CFD No. 2003-01 (1A No. 1)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 2 or a refund from the Etiwanda School District pursuant to that certain Joint Community Facilities Agreement dated as of February 19, 2002 between the City and the Etiwanda School District,or from the Chaffey Joint Union High School District,pursuant to that certain Joint Community Facilities Agreement dated as of February 19, 2002 between the City and the Chaffey Joint Union High School District. "Outstanding Zone 3 Bonds" means(a)the product of(i)the original principal amount of the CFD No. 2003-01 (lA No. 1)Bonds minus the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been paid at maturity, or been redeemed or defeased other than City of Rancho Cucamonga March 10,2003 from prepayments of Special Taxes; and(ii) the Zone 3 Allocation,minus (b) the principal amount of the CFD No. 2003-01 (IA No. 1)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 3. "Privately Owned Exempt Parking Property" means the land area consisting of up to 4.25 Acres in Zone 2 to be utilized for a garage, parking lot or parking structure as geographically identified in Attachment A to this Rate and Method of Apportionment, and specifically defined in Attachment B. "Privately Owned Specific Retail Property" means one or more Assessor's Parcels of Developed Property in Zone 2 for which a building permit has been issued for uses that are consistent with the Major Department Store land use category in the Disposition and Development Agreement, as determined by the CFD Administrator. "Proportionately" means for Developed Property in a particular Zone that the ratio of the actual Special Tax levy in such Zone to the Assigned Special Tax for such Zone is equal for all Assessor's Parcels of Developed Property within such Zone,or where the Backup Special Tax is being levied in a particular Zone that the ratio of the actual Special Tax levy in such Zone to the Maximum Special Tax for such Zone is equal for all Assessor's Parcels upon which a Backup Special Tax is being levied within such Zone. For Undeveloped Property in a particular Zone, "Proportionately" means that the ratio of the actual Special Tax levy per Acre in such Zone to the Maximum Special Tax per Acre for such Zone is equal for all Assessor's Parcels of Undeveloped Property within such Zone. "Public Property"means any property within the boundaries of CFD No.2003-01 (IA No. 1)that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government,the State, the County,the City or any other public agency,provided however that any 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 ofconstructing one or more residential dwelling units. "Resolution of Formation" means the Resolution of Formation for CFD No. 2003-01 (IA No. 1). "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property to fund the Zone 1 Special Tax Requirement,the Zone 2 Special Tax Requirement,or the Zone 3 Special Tax Requirement. "State" means the State of California. City of Rancho Cucamonga March 10,2003 CFD No. 2003-01 (IA No. 1) Page 4 "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2003-01 (IA No. 1)which are not exempt from the Special Tax pursuant to law or 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. "Zone" means Zone 1, Zone 2, or Zone 3, as applicable. "Zone 1" means all Assessor's Parcels located within the boundaries of Zone 1 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 1 Allocation" means the percentage of CFD No. 2003-01 (IA No. 1)Bonds allocated to Zone 1 based on Zone 1's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone 1 Allocation is 6.72%. "Zone 1 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No. 2003-01 (IA No. 1)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 1 Special Taxes, as reasonably determined by the CFD Administrator, and (ii) pay for reasonably anticipated delinquent Zone 1 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 1 in the previous Fiscal Year. "Zone 1 Special Tax Requirement" means, for any Fiscal Year,the sum of(i)the Zone 1 Allocation times the Administrative Special Tax Requirement;and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 1 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities, and(c)pay the Zone 1 Delinquency Amount, if any; (iii) less a credit for funds available to reduce the annual Special Tax levy within Zone 1,as determined by the CFD Administrator pursuant to the Indenture. "Zone 2" means all Assessor's Parcels located within the boundaries of Zone 2 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 2 Allocation" means the percentage of CFD No.2003-01 (IA No. 1)Bonds allocated to Zone 2 based on Zone 2's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone 2 Allocation is 81.74%. "Zone 2 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish anyreserve funds for CFD No. 2003-01 (IA No. 1)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 2 Special Taxes, as reasonably determined by the CFD Administrator, and (ii) pay for reasonably anticipated delinquent Zone 2 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 2 in the previous Fiscal Year. City of Rancho Cucamonga March 10, 2003 "Zone 2 Special Tax Requirement" means, for any Fiscal Year,the sum of(i)the Zone 2 Allocation times the Administrative Special Tax Requirement; and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 2 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities, and (c) pay the Zone 2 Delinquency Amount, if any; (iii) less a credit for funds available to reduce the annual Special Tax levy within Zone 2, as determined by the CFD Administrator pursuant to the Indenture. For the purposes of this definition,all amounts held in the funds and accounts under the Indenture which are intended to be used to pay debt service on CFD No. 2003-01 (IA No. 1)Bonds issued and outstanding, and which are derived from refunds from the Etiwanda School District pursuant to that certain Joint Community Facilities Agreement dated as of February 19, 2002 between the City and the Etiwanda School District,or from the Chaffey Joint Union High School District, pursuant to that certain Joint Community Facilities Agreement dated as ofFebruary 19,2002 between the City and the Chaffey Joint Union High School District shall be considered amounts available to reduce the annual Special Tax levy within Zone 2. "Zone 3" means all Assessor's Parcels located within the boundaries of Zone 3 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 3 Allocation" means the percentage of CFD No.2003-01 (IA No. 1)Bonds allocated to Zone 3 based on Zone 3's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone 3 Allocation is 11.54%. "Zone 3 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No. 1)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 3 Special Taxes, as reasonably determined by the CFD Administrator, and (ii) pay for reasonably anticipated delinquent Zone 3 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 3 in the previous Fiscal Year. "Zone 3 Special Tax Requirement" means, for any Fiscal Year,the sum of(i)the Zone 3 Allocation times the Administrative Special Tax Requirement; and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 3 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities, and (c)pay the Zone 3 Delinquency Amount, if any; (iii) less a credit for funds available to reduce the annual Special Tax levy within Zone 3, as determined by the CFD Administrator pursuant to the Indenture. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within Zone 1,Zone 2, and Zone 3 of CFD No.2003- 01 (IA No. 1) shall be classified as Developed Property or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. City of Rancho Cucamonga March 10, 2003 CFD No. 2003-01(1A Na. 1) Page 6 C. MAXIMUM SPECIAL TAX RATE 1. ZONE 1 a. Zone 1 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 1 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 1 or(ii) the amount derived by application of the Backup Special Tax for Zone 1. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No. 2003-01 (IA No. l)shall equal$4,318 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. (iii). BacLmp Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No.2003-01 (IA No. 1)shall equal$4,798 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 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. b. Zone 1 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 1 of CFD No. 2003-01 (IA No. 1) shall be $4,798 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. City of Rancho Cucamonga March 10, 2003 2. ZONE 2 a. Zone 2 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 2 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 2 or(ii) the amount derived by application of the Backup Special Tax for Zone 2. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No. 2003-01 (IA No. 1) shall equal $36,294 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No. 2003-01 (IA No. 1) shall equal $40,327 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 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. b. Zone 2 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 2 of CFD No. 2003-01 (IA No. 1) shall be $12,817 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. 3. ZONE 3 a. Zone 3 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 3 classified as Developed Property shall be the greater of(i)the amount City of Rancho Cucamonga March 10,2003 CFD No. 2003-01(IA No. 1) Page 8 derived by application of the Assigned Special Tax for Zone 3 or(ii) the amount derived by application of the Backup Special Tax for Zone 3. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 3 of CFD No. 2003-01 (IA No. 1) shall equal $10,272 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 3 of CFD No. 2003-01 (IA No. 1) shall equal $11,413 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 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. b. Zone 3 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 3 of CFD No. 2003-01 (IA No. 1) shall be $11,413 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. ZONE 1 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 1 Special Tax Requirement and levy the Special Tax in Zone 1 until the amount of Special Taxes levied in Zone 1 is equal to the Zone 1 Special Tax Requirement. The Special Tax shall be levied in Zone 1 each Fiscal . Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied City of Rancho Cucamonga March 10,2003 Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 1 at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 1 whose Maximum Special Tax is equal to 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. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 1 pursuant to steps two and three above, and (i) all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Zone 1, except for those Residential Properties whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within Zone 1. 2. ZONE 2 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 2 Special Tax Requirement and levy the Special Tax in Zone 2 until the amount of Special Taxes levied in Zone 2 is equal to the Zone 2 Special Tax Requirement. The Special Tax shall be levied in Zone 2 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 2 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 2 at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 2 whose Maximum Special Tax is equal to the Backup Special Tax shall be increased City of Rancho Cucamonga March 10, 2003 CFD No. 2003-01 (IA No. 1) Page 10 Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 2 pursuant to steps two and three above,and (i) all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. 3. ZONE 3 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 3 Special Tax Requirement and levy the Special Tax in Zone 3 until the amount of Special Taxes levied in Zone 3 is equal to the Zone 3 Special Tax Requirement.The Special Tax shall be levied in Zone 3 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 3 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 3 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel ofUndeveloped Property in Zone 3 at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 3 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 3 whose Maximum Special Tax is equal to 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. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 3 pursuant to steps two and three above,and (i) all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. City of Rancho Cucamonga March 10,2003 E. EXEMPTIONS 1. ZONE 1 No Special Tax shall be levied on Public Property in Zone 1. 2. ZONE 2 No Special Tax shall be levied on Public Property in Zone 2. In addition,no Special Tax shall be levied on Privately Owned Exempt Parking Property in Zone 2. Furthermore,no Special Tax shall be levied on up to 10.56 Acres of Privately Owned Specific Retail Property in Zone 2. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property in Zone 2 becomes Privately Owned Specific Retail Property. If the total number of Acres of Privately Owned Specific Retail Property exceeds the amount stated above, then the Acres exceeding such total shall be taxed at the applicable rates for Developed Property for Zone 2 as set forth in Section C above and to the extent set forth in Section D above. 3. ZONE 3 No Special Tax shall be levied on Public Property in Zone 3. F. REVIEW/APPEAL COMMITTEE Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the amount of the Special Tax shall be appropriately modified. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2003-01 (IA No. 1)may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if City of Rancho Cucamonga Mardi 10,2003 CFD No. 1003-01 (IA No. 1) Page 12 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 1. Payment in Full Only an Assessor's Parcel ofDeveloped Property,or Undeveloped Property for which a building permit has been issued, may be prepaid. The Special Tax obligation applicable to an Assessor's Parcel in CFD No. 2003-01 (IA No. 1) may only be prepaid after all authorized CFD No. 2003-01 (IA No. 1)Bonds have already been issued, or after the Council has covenanted that it will not issue any additional CFD No. 2003-01 (IA No. 1)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. The obligation of the Assessor's Parcel to pay any Special Tax may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel 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 the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice,the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 45 days prior to any redemption date for the CFD No.2003-01 (IA No. 1)Bonds to be redeemed with the proceeds of such prepaid Special Taxes. 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: Parauaph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Maximum Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which building permits have already been issued, compute the Maximum Special Tax for the Assessor's Parcel to be City of Rancho Cucamonga March 10,2003 -- 11 prepaid as though it were already designated as Developed Property, based upon the building permit which has been issued for that Assessor's Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the estimated Maximum Special Taxes for the entire Zone in which the Assessor's Parcel is located based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development in such Zone, excluding any Assessor's Parcels in such Zone which have been prepaid; and 4. (a) For Assessor's Parcels in Zone 1, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 1 Bonds to compute the amount of Outstanding Zone 1 Bonds to be retired and prepaid; or (b) For Assessor's Parcels in Zone 2, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 2 Bonds to compute the amount of Outstanding Zone 2 Bonds to be retired and prepaid: or (c) For Assessor's Parcels in Zone 3, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 3 Bonds to compute the amount of Outstanding Zone 3 Bonds to be retired and prepaid(in either(a), (b), or(c) above, the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount for the appropriate Zone computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price — 100%), if any, on the Outstanding Zone 1, Zone 2, or Zone 3 Bonds to be redeemed(the "Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Zone 1, Zone 2, or Zone 3 Bonds, as applicable. 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 amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Zone 1, Zone 2, or Zone 3 Bonds, as applicable, to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 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 reasonably assumed by the CFD Administrator in paragraph 8 (the "Defeasance Amount"). City of Rancho Cucamonga March 10, 2003 CFD No. 2003-01 (IA No. 1) Page 14 11. The administrative fees and expenses of CFD No. 2003-01 (IA No. 1)are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2003-01 (IA No. 1) Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 12. The reserve fund credit(the"Reserve Fund Credit")shall equal the lesser of. (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Zone 1, Zone 2, or Zone 3 Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Zone 1, Zone 2, or Zone 3 Bonds, as applicable, as a result of the prepayment from the balance in the reserve fund on the prepayment date,but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Outstanding Zone 1, Zone 2, or Zone 3 Bonds, as applicable, is below 100% of the reserve requirement (as defined in the Indenture). 13. If any capitalized interest for the Outstanding Zone 1, Zone 2, or Zone 3 Bonds,as applicable,will not have been expended as of the fust bond interest and/or principal payment date following the current Fiscal Year,a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 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 4, 5, 10, 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Zone 1, Zone 2, or Zone 3 Bonds, as applicable, or make debt service payments. The amount computed pursuant to paragraph 11 shall be retained by CFD No. 2003-01 (IA No. 1). The Prepayment Amount may be sufficient to redeem other than a$5,000 increment of CFD No.2003-01 (IA No. 1)Bonds. In such cases,the increment above$5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of CFD No.2003-01 (IA No. 1)Bonds or to make debt service payments. Upon confirmation of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County City of Rancho Cucamonga March 10,2003 tax rolls. With respect to any Assessor's Parcel for which the Special Tax obligation is prepaid in full in accordance with this Section H.1., 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 Maximum Special Taxes that maybe levied within the entire Zone in which the Assessor's Parcel's Special Tax obligation is prepaid both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Zone 1, Zone 2, and Zone 3 Bonds, as applicable. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property and an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP=PEXF These terms have the following meaning: PP = the partial prepayment PE= the Prepayment Amount calculated according to Section H.1 F= the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of(i)such owner's intent to partially prepay the Special Tax,and (ii) the percentage by which the Special Tax shall be prepaid, and(iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty(30)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 according to Section H.1, and (ii) indicate in the records of CFD No. 2003-01 (IA No. 1) that there has been a partial prepayment of the Special Tax and that a portion of the Assigned Special Tax and Maximum Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of each, respectively, shall continue to be levied on such Assessor's Parcel pursuant to Section D. City of Rancho Cucamonga March 10,2003 CFD No. 2003-01 (IA No. 1) Page 16 I. TERM OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed 50 years commencing with Fiscal Year 2003-04, provided however that Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2003-01 (IA No. 1) Bonds have been paid; and (ii) all Authorized Facilities have been constructed. Kr IClientsManchoCucamongaIVicforiaGarde=IRMA Vmprow enfArea!_7.doe Prepared: 3/10/03 City of Rancho Cucamonga March 10,2003 EXHIBIT A-2 RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA 2 PARKING STRUCTURE PARCELS THOSE CERTAIN PORTIONS OF PARCEL 1 OF PARCEL MAP NO. 7966 IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 86 AT PAGES 1 THROUGH 3 INCLUSIVE OF PARCEL MAPS IN THE OFFICE OF THE RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL P1: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL MAP NO. 7966; THENCE ALONG THE NORTH LINE OF LAST SAID PARCEL MAP, SOUTH 89°55'01" EAST 707.59 FEET; THENCE LEAVING SAID NORTH LINE, SOUTH 00004'59" WEST 283.20 FEET TO THE POINT OF BEGINNING OF THE PARCEL TO BE HEREIN DESCRIBED; THENCE CONTINUING ALONG THE SAME BEARING, SOUTH 00°04'59" WEST 325.20 FEET; THENCE NORTH 89°55'01" WEST 331.99 FEET; THENCE NORTH 00004'59 EAST 310.20 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEAST, HAVING A RADIUS OF 25.00 FEET; THENCE ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 36052'12" AN ARC LENGTH OF 16.09 FEET; THENCE SOUTH 89055'01"EAST 326.99 FEET TO THE POINT OF BEGINNING. CONTAINING 2.478 ACRES OF LAND, MORE OR LESS. PARCEL P2: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL MAP NO. 7966; THENCE ALONG SAID PARCEL MAP, SOUTH 89055'01" EAST 707.59 FEET; THENCE CONTINUING ALONG SAID NORTH LINE, SOUTH 89055'01" EAST 407.93 FEET; THENCE LEAVING SAID NORTHERLY LINE, SOUTH 00004'59" WEST 273.20 FEET TO THE POINT OF BEGINNING OF THE PARCEL TO BE HEREIN DESCRIBED; THENCE CONTINUING ON LAST SAID BEARING, SOUTH 00004'59" WEST 10.00 FEET; THENCE NORTH 89055'01"WEST 10.17 FEET; THENCE SOUTH 00004'59"WEST 324.61 FEET; THENCE SOUTH 89055'01" EAST 236.00 FEET;THENCE NORTH 00004'59" EAST 295.61 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 25.00 FEET; THENCE ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90000'00" AN ARC LENGTH OF 39.27 FEET; THENCE.NORTH 89055'01" WEST 55.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 84.57 FEET; THENCE ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 23028'33" AN ARC LENGTH OF 34.65 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 84.57 FEET; THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23028'33"AN ARC LENGTH OF 34.65 FEET; THENCE NORTH 89055'01"WEST 78.45 FEET TO THE POINT OF BEGINNING. CONTAINING 1.771 ACRES OF LAND, MORE OR LESS. PREPARED UNDER MY DIRECTION STANLEY C. MORSE, L.S. 3640 DATE LICENSE EXPIRES 6-30-04 GA466\061LEGALS\PKG-STR.D0C SHEET 2 OF 2 SHEETS PARKING STRUCTURE PARCELS NW CORNER PARCEL MAP NO. 15641 ---Nr tP P.M.B. 192/93-100 5 26 N 89'55'01" W 2223.15' 07.59' 407.93' 1107.63 O N 1 ^ LO t0 N1 N3cn _ ^ m 2 N hI O � tD O bf F7 � F">V bf bN b NOD NOD Op ON ZI IO ZO I � ZO� CK2 aD= N 89'55'01' W 326.99' P.O.B. z �R=25.00' L=16.09' N o to - b 0) v ti 9 c p ^ (? M Z'j ONi w PARCEL P1 upNi CULTURAL ARTS Q PARCEL P2 w 2.478 AC. .N, CENTER PARCEL m 1.771 AC. b 2 d b b z d Z I z N 8955'01" W 331.99' ----; r— N89'55'01"W 236.00' t. AN I Y C. GPS ti �U) V) m z Exp. 6/30/2004 150 75 0 150 No. 3640 ��91F OF' CAQEGRAPHIC SCALE PREPARED UNDER THE SUPERVISION OF: LEGEND ® INDICATES SUBJECT PARCEL AREA INDICATES SUBJECT PARCEL LINE STANLEY C. MORSE L.S. 3640 EXPIRES 673V2-00-4)2004 INDICATES EXISTING PARCEL UNE 1:\46606\MAPPING\PRKSTI-2 11-13-02 SHEET 1 OF 2 SHEETS PARKING STRUCTURE PARCELS PARCEL MAP NO. 15641 P.M.B. 192/93-100 5 6 7 11 12 CHURCH STREET 24 25 26 N :8T55'01'W; 2223.15' 16 14 23 PARCELP2 QL.LJ N.A.P. � SEE SHEET 2 w O PARCEL P7 m Y 0 17 Lu 22 � PARCEL MAP 7966 o U P.M.B. 86/1-3 ¢} za ❑ ¢ °'15 2m Ly SSP 0 o: 18 21 a 20 19 FOOTHILL BOULEVARD (ROUTE 66) I � fi r[ �ANp s C. v ,? �J, 0 600 300 0 600 m �O Exp. 6/30/2004 * No. 3640 * GRAPHIC SCALE ��9TFOfi CAO���\P PREPARED UNDER THE SUPERWSION OF: LEGEND ® INDICATES SUBJECT PARCEL AREA INDICATES SUBJECT PARCEL UNE STANLEY C. MORSE L.S. 3640 EXPIRES 6 30 2004 INDICATES EXISTING PARCEL LINE I:\46606\MAPPING\PRKSTI-1 11-13-02 ATTACHMENT B PRIVATELY OWNED EXEMPT PARKING PROPERTY LISTING LEGAL DESCRIPTION CFD 2003.01 IMPROVEMENT AREA NO. 1 -ZONE NO. 3 PORTIONS OF PARCEL MAP NO. 15641 IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 192 OF PARCEL MAPS AT PAGES 93 THROUGH 100 INCLUSIVE, IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND PARCEL MAP NO. 7966 PER MAP RECORDED IN BOOK 86 OF PARCEL MAPS AT PAGES 1 THROUGH 3 IN SAID RECORDER'S OFFICE, LYING. WITHIN THE FOLLOWING DESCRIBED PARCEL: BEGINNING AT THE MOST SOUTHEASTERLY CORNER OF SAID PARCEL MAP NO. 15641;. THENCE ALONG THE SOUTH LINE OF SAID PARCEL MAP NO. 15641, NORTH 89055'01" WEST 807.40 FEET; THENCE LEAVING SAID SOUTH LINE ALONG THE EAST LINE OF DAY CREEK BOULEVARD AS SHOWN ON SAID PARCEL MAP NO. 15641, NORTH 44°49'38" WEST 84.98 FEET; THENCE NORTH 0015'45" EAST 642.29 FEET; THENCE LEAVING SAID EAST LINE, SOUTH 23°23'13"EAST 25.11 FEET;THENCE SOUTH 89°55'01"EAST 54.47 FEET;THENCE SOUTH 0004'59" WEST 103.00 FEET; THENCE SOUTH 89055'01" EAST 623.93 FEET; THENCE SOUTH 0004'58"WEST 22.99 FEET; THENCE SOUTH 85009'09" EAST 104.26 FEET; THENCE NORTH 4050'51" 9.14 FEET; THENCE NORTH 54049'11" EAST 24.12 FEET; THENCE NORTH 0004'59' EAST 8.61 FEET; THENCE SOUTH 89055'01" EAST 604.06 FEET; THENCE SOUTH 0004'59" WEST 75.98 FEET TO THE SOUTHWESTERLY LINE OF SAID PARCEL MAP NO. 15641; THENCE SOUTHWESTERLY ALONG SAID SOUTHEASTERLY LINE, SOUTH 69030'05" WEST 116.82 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 650.00 FEET; THENCE SOUTHWESTERLY ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 38000'00"AN ARC LENGTH.OF 431.10 FEET; THENCE SOUTH 31030'05"WEST 222.30 FEET TO THE POINT OF BEGINNING. CONTAINING 14.689 ACRES OF LAND, MORE OR LESS. PREPARED BY ME OR UNDER MY DIRECTION: C''L/p GPS � o STANLEY C. MORSE, P.L.S. 3640, DATED 12-06-02 Ln J N m A LICENSE EXPIRES 6-30-04 * E.p. 6/30/2004 No. 3640 JT9 \Q. G:Q90\1 LLEGALS\IA1.Z3.DOC lF OF CAO NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90°00'00" AN ARC LENGTH OF 39.27 FEET; THENCE NORTH 0004'59" EAST 109.70 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 213.00 FEET; THENCE NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 21043'28" AN ARC LENGTH OF 80.76 FEET; THENCE NORTH 21°48'29" EAST 11.04 FEET; THENCE NORTH 68011'33" WEST 35.26 FEET; THENCE NORTH 25004'56" EAST 22.02 FEET TO A POINT IN A NON-TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 945.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 24°39'26" EAST; THENCE NORTHWESTERLY ALONG LAST SAID NON-TANGENT CURVE THROUGH A CENTRAL ANGLE OF 8021'01" AN ARC LENGTH OF 137.72 FEET TO A POINT OF CUSP WITH A NON-TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 902.00 FEET, RADIAL LINES THROUGH SAID POINT OF CUSP BEAR NORTH 30000'27" EAST (945.00-FOOT RADIUS) AND NORTH 32°38'39" EAST (902.00-FOOT RADIUS), SAID POINT OF CUSP ALSO BEING THE SOUTH LINE OF CHURCH STREET AS SHOWN ON SAID PARCEL MAP NO. 15641; THENCE SOUTHEASTERLY ALONG LAST SAID NON-TANGENT CURVE AND ALONG SAID SOUTH LINE OF CHURCH STREET THROUGH A CENTRAL ANGLE OF 13000'40" AN ARC LENGTH OF 204.83 FEET TO THE NORTH LINE OF SAID PARCEL MAP NO. 15641; THENCE LEAVING LAST SAID SOUTH LINE ALONG LAST SAID NORTH LINE, SOUTH 89055'01" EAST 444.05 FEET TO THE POINT OF BEGINNING. CONTAINING 110.453 ACRES OF.LAND, MORE OR LESS. PREPARED BY ME OR UNDER MY DIRECTION: ti �P o STANLEY C: MORSE, P.L.S. 3640, DATED 12-06-02 <2� N m A LICENSE EXPIRES 6-30-04 * Exp. 6/30/2004 No. 3640 G129OXMLEGALS LA7-22.DOC 9lF OF CALIF LEGAL DESCRIPTION CFD 2003-01 IMPROVEMENT AREA NO. 1 -ZONE NO. 2 PORTIONS OF PARCEL MAP NO. 15641 IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 192 OF PARCEL MAPS AT PAGES 93 THROUGH 100 INCLUSIVE, IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND PARCEL MAP NO. 7966 PER MAP RECORDED IN BOOK 86 OF PARCEL MAPS AT PAGES 1 THROUGH 3 IN SAID RECORDER'S OFFICE AND PARCEL B AS SAID PARCEL B IS DESCRIBED IN DOCUMENT NO. 19990308589 RECORDED JULY 23, 1999 IN THE OFFICIAL RECORDS OF SAID COUNTY, LYING WITHIN THE FOLLOWING DESCRIBED PARCEL: BEGINNING AT THE MOST NORTHEASTERLY CORNER OF SAID PARCEL MAP NO. 7966; THENCE ALONG THE EAST LINE OF SAID PARCEL MAP NO. 7966, SOUTH 0007'34"WEST 1065.17 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 800.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 34025'30" AN ARC LENGTH OF 480.66 FEET; THENCE LEAVING SAID EAST LINE TO THE PREVIOUS CURVE ALONG THE NORTHERLY AND SOUTHEASTERLY LINES OF SAID PARCEL B, NORTH 89058'47" WEST 93.23 FEET; THENCE SOUTH 43°51'29" 290.33 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1800.00 FEET; THENCE SOUTHWESTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 13058'01" AN ARC LENGTH OF 438.78 FEET; THENCE SOUTH 57049'30" WEST 10.37 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2000.00 FEET; THENCE LEAVING SAID SOUTHEASTERLY LINE OF PARCEL B ALONG THE SOUTHEASTERLY LINE OF SAID PARCEL MAP NO. 7966 AND ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 11°40'35"AN ARC LENGTH OF 407.58 FEET; THENCE SOUTH 69°30'05"EAST 250.72 FEET; THENCE LEAVING LAST SAID SOUTHEASTERLY LINE, NORTH 0°04'59" EAST 75.98 FEET; THENCE NORTH 89°55'01" WEST 604.06 FEET; THENCE SOUTH 0°04'59"WEST 8.61 FEET; THENCE SOUTH 54049'11" WEST 24.12 FEET; THENCE NORTH 4°50'51" 9.14 FEET; THENCE NORTH 85009'09" WEST 104.26 FEET; THENCE NORTH 0°04'58" EAST 22.99 FEET; THENCE NORTH 89055'01" WEST 623.93 FEET; THENCE NORTH 0°04'59" EAST 103.00 FEET; THENCE NORTH 23°23'13" WEST 25.11 FEET TO THE EAST LINE OF DAY CREEK BOULEVARD AS SHOWN ON SAID PARCEL MAP NO. 15641; THENCE ALONG SAID EAST LINE, NORTH 0015'45" EAST TO A TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 2428.00 FEET; THENCE NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 3°02'25" 128.84 FEET; THENCE NORTH 3°18'10" EAST 1267.27 FEET TO A TANGENT CURVE CONCAVE WESTERLY HAVING A RADIUS OF 2572.00 FEET; THENCE NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 1048'05" AN ARC LENGTH OF 80.87 FEET; THENCE LEAVING SAID EAST LINE OF DAY CREEK BOULEVARD, NORTH 22°04'33" EAST 26.70 FEET; THENCE SOUTH 89055'01" EAST 1016.33 TO A POINT IN A NON-TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 85.50 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 15°18'21" WEST; THENCE EASTERLY ALONG SAID NON-TANGENT CURVE THROUGH A CENTRAL ANGLE OF 8000'31" AN ARC LENGTH OF 11.95 FEET TO A REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 99.50 FEET; THENCE EASTERLY ALONG SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 23°13'53"AN ARC LENGTH OF 40.34 FEET; THENCE SOUTH 89055'01" EAST 150.00 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 143.67 FEET; THENCE EASTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 15032'46" AN ARC LENGTH OF 38.98 FEET TO A REVERSE CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 266.33 FEET; THENCE EASTERLY ALONG LAST SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 6°56'18" AN ARC LENGTH OF 32.25 FEET; THENCE SOUTH 89055'01" EAST 128.66 FEET; THENCE NORTH 0004'59" EAST 50.00 FEET; THENCE SOUTH 89055'01" EAST 579.84 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 25.00 FEET; THENCE EASTERLY AND THENCE NORTH 1028'43" WEST 294.75 FEET; THENCE NORTH 44°18'08" EAST 122.48 FEET TO THE POINT OF BEGINNING. CONTAINING 21.653 ACRES OF LAND, MORE OR LESS. PREPARED BY ME OR UNDER MY DIRECTION: IAN. S 1( C.C. GPG mo STANLEY C. MORSE, P.L.S. 3640, DATED 12-06-02 in J m LICENSE EXPIRES 6-30-04 * Exp. 6/30/2004 No. 3640 G.12901701LEGALSMA7-D.DOC �lglF OF CAO��\P LEGAL DESCRIPTION CFD 2003-01 IMPROVEMENT AREA NO. 1 -ZONE NO. 1 PORTIONS OF PARCEL MAP NO. 15641 IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 192 OF PARCEL MAPS AT PAGES 93 THROUGH 100 INCLUSIVE, IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND PARCEL MAP NO. 7966 PER MAP RECORDED IN BOOK 86 OF PARCEL MAPS AT PAGES 1 THROUGH 3 IN SAID RECORDER'S OFFICE, LYING WITHIN THE FOLLOWING DESCRIBED PARCEL: BEGINNING AT THE NORTHEASTERLY TERMINUS OF THAT CERTAIN COURSE IN THE NORTHWESTERLY LINE OF PARCEL MAP NO. 15641 HAVING A BEARING OF NORTH 44°18'08" EAST AND A DISTANCE OF 122.48 FEET; THENCE FROM SAID POINT OF BEGINNING ALONG THE NORTHERLY LINE OF SAID PARCEL MAP NO. 15641, NORTH 89°55'01"WEST 172.57 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 1052.00 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 4°47'42" AN ARC LENGTH OF 88.04 FEET TO A REVERSE CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 947.98 FEET; THENCE EASTERLY ALONG SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 4°47'42"AN ARC LENGTH OF 79.34 FEET; THENCE NORTH 89°55'01" WEST 1059.25 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 798.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32033'40" AN ARC LENGTH OF 453.50 FEET TO A POINT IN A NON-TANGENT REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 945.00 FEET, RADIAL LINES THROUGH SAID POINT BEAR SOUTH 32°38'39" WEST (798.00-FOOT RADIUS)AND NORTH 33°00'27" EAST (945.00- FOOT RADIUS); THENCE LEAVING SAID NORTHERLY LINE AND SOUTHEASTERLY ALONG LAST SAID NON-TANGENT REVERSE CURVE THROUGH A CENTRAL ANGLE OF 8021'01" AN ARC LENGTH OF. 137.72 FEET; THENCE NON-TANGENT TO THE PREVIOUS CURVE, SOUTH 25004'56" EAST 22.02 FEET; THENCE SOUTH 68011'33" EAST 35.26 FEET; THENCE SOUTH 21048'29" EAST 11.04 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 213.00 FEET; THENCE SOUTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 21°43'28" AN ARC LENGTH OF 80.76 FEET; THENCE SOUTH 0004'59" EAST 109.70 FEET, TO A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHERLY AND WESTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90°00'00"AN ARC LENGTH OF 39.27 FEET; THENCE NORTH 89°55'01"WEST 579.84 FEET; THENCE SOUTH 0004'59" EAST 50.00 FEET; THENCE NORTH 89°55'01" WEST 128.86 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 266.33 FEET; THENCE SOUTHEASTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 6°56'18"AN ARC LENGTH OF 32.25 FEET TO A REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 143.67 FEET; THENCE WESTERLY ALONG LAST SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 15032'46" AN ARC LENGTH OF 38.98 FEET; THENCE NORTH 89055'01" WEST 150.00 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 99.50 FEET; THENCE WESTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 23013'53" AN ARC LENGTH OF 40.34 FEET TO A REVERSE CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 85.50 FEET; THENCE WESTERLY ALONG LAST SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 8000'31" AN ARC LENGTH OF 11.95 FEET; THENCE NORTH 89055'01" WEST 1016.33 FEET; THENCE SOUTH.22004'33" EAST 26.70 FEET TO A POINT IN A NON-TANGENT CURVE CONCAVE WESTERLY HAVING A RADIUS OF 2572.00 FEET, SAID POINT ALSO BEING IN THE LAST LINE OF DAY CREEK BOULEVARD AS SHOWN ON SAID PARCEL MAP NO. 15641, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 88029'55" WEST; THENCE NORTHERLY ALONG LAST SAID NON-TANGENT CURVE AND ALONG SAID EAST LINE THROUGH A CENTRAL ANGLE OF 4045'59" AN ARC LENGTH OF 213.97 FEET; PARKING STRUCTURE PARCELS THOSE CERTAIN PORTIONS OF PARCEL 1 OF PARCEL MAP NO, 7966 IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 86 AT PAGES 1 THROUGH 3 INCLUSIVE OF PARCEL MAPS IN THE OFFICE OF THE RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL P1: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL MAP NO. 7966; THENCE ALONG THE NORTH LINE OF LAST SAID PARCEL MAP, SOUTH 89055'01" EAST 707.59 FEET; THENCE LEAVING SAID NORTH LINE, SOUTH 00004'59" WEST 283.20 FEET TO THE POINT OF BEGINNING OF THE PARCEL TO BE HEREIN DESCRIBED; THENCE CONTINUING ALONG THE SAME BEARING, SOUTH 00°04'59" WEST 325.20 FEET; THENCE NORTH 89055'01' WEST 331.99 FEET; THENCE NORTH 00004'59" EAST 310.20 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEAST, HAVING A RADIUS OF 25.00 FEET; THENCE ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 36052'12" AN ARC LENGTH OF 16.09 FEET; THENCE SOUTH 89055'01" EAST 326.99 FEET TO THE POINT OF BEGINNING. CONTAINING 2.478 ACRES OF LAND, MORE OR LESS. PARCEL P2: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL MAP NO. 7966; THENCE ALONG SAID PARCEL MAP, SOUTH 89055'01" EAST 707.59 FEET; THENCE CONTINUING ALONG SAID NORTH LINE, SOUTH 89055'01" EAST 407.93 FEET; THENCE LEAVING SAID NORTHERLY LINE, SOUTH 00004'59" WEST 273.20 FEET TO THE POINT OF BEGINNING OF THE PARCEL TO BE HEREIN DESCRIBED; THENCE CONTINUING ON LAST SAID BEARING, SOUTH 00004'59" WEST 10.00 FEET; THENCE NORTH 89°55'01"WEST 10.17 FEET; THENCE SOUTH 00°04'59"WEST 324.61 FEET;THENCE SOUTH 8955'01" EAST 236.00 FEET;THENCE NORTH 00°04'59"EAST 295.61 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 25.00 FEET; THENCE ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90000'00" AN ARC LENGTH OF 39.27 FEET; THENCE.NORTH 89055'01" WEST 55.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 84.57 FEET; THENCE ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 23°28'33" AN ARC LENGTH OF 34.65 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 84.57 FEET;THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23°28'33"AN ARC LENGTH OF 34.65 FEET; THENCE NORTH 89°55'01" WEST 78.45 FEET TO THE POINT OF BEGINNING. CONTAINING 1.771 ACRES OF LAND, MORE OR LESS. PREPARED UNDER MY DIRECTION STANLEY C. MORSE, L.S. 3640 DATE LICENSE EXPIRES 6-30-04 GA4661061LEGALSTKG-STR.00C EXHIBIT A-2 RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA 2 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-01 OF THE CITY OF RANCHO CUCAMONGA IMPROVEMENT AREA NO. 2 A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community Facilities District No. 2003-01 (Improvement Area No. 2) ("CFD No. 2003-01 (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2003-04, in an amount determined by the Council through the application of the appropriate Special Tax within each Zone for"Developed Property" and "Undeveloped Property" as described below. All of the real property in CFD No. 2003-01 (IA No. 2), 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. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage"means the land area of an 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 map or plan recorded with the County. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "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 Califomia. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No.2003-01 (IA No.2):the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules(whetherby the City, a 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. 2003-01 (IA No. 2) or any designee of either thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2003-01 (IA No.2)or any designee of either thereof of complying with City,CFD No.2003- 01 (IA No: 2) or obligated persons disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;the costs of the City,of CFD No.2003-01 (IA No.2)or any designee of either thereof related to an appeal of the Special Tax;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.2003-01 (IA No. 2)for any other administrative purposes of CFD No. 2003-01 (IA No. 2), including. attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Administrative Special Tax Requirement" means, for any Fiscal Year, that amount estimated to be required to: (i)pay periodic costs on the CFD No.2003-01 (IA No.2)Bonds City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page I other than regularly scheduled debt service,including but not limited to,credit enhancement and rebate payments on the CFD No.2003-01 (IA No.2)Bonds as described in the Indenture and due in the calendar year beginning in said Fiscal Year; and (ii) pay Administrative Expenses. "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 Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Authorized Facilities" means those improvements, as listed on Exhibit "A" to the Resolution of Formation. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for each Zone and providing for the levy and collection of the Special Taxes. "CFD No.2003-01" means City of Rancho Cucamonga Community Facilities District No. 2003-01 (Victoria Gardens). "CFD No. 2003-01 (IA.No.2)" means Improvement Area No. 2 of CFD No. 2003-01, as identified on the boundary map for CFD No. 2003-01. "CFD No.2003-01 (JA No.2)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.2003-01 and secured solely by Special Taxes levied on property within the boundaries of CFD No. 2003-01 (IA No. 2)under the Act. "City" means the City of Rancho Cucamonga. "Council" means the City Council of the City of Rancho Cucamonga, acting as the legislative body of CFD No. 2003-01 (IA No. 2). "County" means the County of San Bernardino. "Developed Property" means, for each Fiscal Year, all Taxable Property which (i) was within a Final Map that was recorded prior to January 1 of the previous Fiscal Year, and(ii) for which a building permit for new construction was issued after January 1, 2002 but prior to January 1 of the previous Fiscal Year. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page 2 "Final 'Map" means a final map, lot line adjustment, or parcel map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)and recorded with the County Recorder that creates individual lots for which building permits may be issued. The term "Final Map" shall not include any Assessor's Parcel Map or subdivision map or portion thereof,that does not create individual lots for which a building permit may be issued, including Assessor's Parcels that are designated as remainder parcels. "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 CFD No. 2003-01 (IA No. 2) Bonds are issued, as modified, amended and/or supplemented from time to time. "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. "Outstanding Zone I Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01 (IA No.2)Bonds minus the principal amount of the CFD No.2003-01 (IA No.2)Bonds that have been paid at maturity, or been redeemed or defeased other than from prepayments of Special Taxes; and(ii)the Zone 1 Allocation,minus(b) the principal amount of the CFD No.2003-01 (IA No.2)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 1. "Outstanding Zone 2 Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01 (IA No.2)Bonds minus the principal amount of the CFD No.2003-01 (IA No. 2) Bonds that have been paid at maturity, or been redeemed or defeased other than from prepayments of Special Taxes; and(ii)the Zone 2 Allocation,minus (b)the principal amount of the CFD No. 2003-01 (IA No.2)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 2. "Proportionately" means for Developed Property in a particular Zone that the ratio of the actual �'Y Special Tax le in such Zone to the Assigned Special Tax for such Zone is equal for P all Assessor's Parcels of Developed Property within such Zone,or where the Backup Special the ratio of the actual S in such Special Tax levy Tax is being levied in a particular Zone that p �'Y Zone to the Maximum Special Tax for such Zone is equal for all Assessor's Parcels upon which a Backup Special Tax is being levied within such Zone. For Undeveloped Property in particular Zone "Proportionately"means that the ratio of the actual Special Tax levy per apartP Acre in such Zone to the Maximum Special Tax per Acre for such Zone is equal for all Assessor's Parcels of Undeveloped Property within such Zone. "Public Property"means any property within the boundaries of CFD No.2003-01 (IA No. 2)that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government, the State,the County, the City or any other public City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page 3 agency,provided however that any 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. "Resolution of Formation"means the Resolution of Formation for CFD No.2003-01 (IA No. 2). "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property to fund the Zone 1 Special Tax Requirement or the Zone 2 Special Tax Requirement. "State" means the State of California. "Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No. 2003-01 (IA No. 2)which are not exempt from the Special Tax pursuant to law or 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. "Zone" means Zone I or Zone 2, as applicable. "Zone 1"means all Assessor's Parcels located within the boundaries of Zone 1 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 1 Allocation"means the percentage of CFD No.2003-01 (IA No.2)Bonds allocated to Zone I based on Zone 1's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone I Allocation is 37.80%. "Zone 1 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No.2)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone I Special Taxes, as reasonably determined by the CFD Administrator, and (ii) pay for reasonably anticipated delinquent Zone 1 Special Taxes based on the delinquency rate for Special Taxes levied in Zone I in the previous Fiscal Year. "Zone 1 Special Tax Requirement" means, for any Fiscal Year,the sum of(i)the Zone I Allocation times the Administrative Special Tax Requirement;and (ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone I Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities, and (c) pay the Zone I Delinquency Amount, if any; (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 1,as determined by the CFD Administrator pursuant to the Indenture. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (/A No. 2) Page 4 "Zone 2"means all Assessor's Parcels located within the boundaries of Zone 2 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 2 Allocation"means the percentage of CFD No.2003-01 (IA No.2)Bonds allocated to.Zone 2 based on Zone 2's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone 2 Allocation is 62.20%. "Zone 2 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No.2)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 2 Special Taxes, as reasonably determined by the CFD Administrator, and (ii) pay for reasonably anticipated delinquent Zone 2 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 2 in the previous Fiscal Year. "Zone 2 Special Tax Requirement" means,for any Fiscal Year, the sum of(i)the Zone 2 Allocation times the Administrative Special Tax Requirement; and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 2 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities, and (c)pay the Zone 2 Delinquency Amount, if any; (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 2,as determined by the CFD Administrator pursuant to the Indenture. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within Zone 1 and Zone 2 of CFD No. 2003-01 (IA No. 2) shall be classified as Developed Property or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX RATE 1. ZONE 1 a. Zone 1 Developed Property (i).. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone I classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone I or(ii) the amount derived by application of the Backup Special Tax for Zone 1. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (1A No. 2) page 5 (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No.2003-01 (IA No.2)shall equal$2,799 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent(2%) of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No.2003-01 (IA No.2)shall equal$3,110 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 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. b. Zone 1 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 1 of CFD No. 2003-01 (IA No. 2) shall be $3,110 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. 2. ZONE 2 a. Zone 2 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 2 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 2 or(ii) the amount derived by application of the Backup Special Tax for Zone 2. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No.2003-01 (IA No.2)shall equal$8,480 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 200.4 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page 6 (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No.2003-01 (IA No.2)shall equal$9,423 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 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. b. Zone 2 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 2 of CFD No. 2003-01 (IA No. 2) shall be $9,423 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July I of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. ZONE 1 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 1 Special Tax Requirement and levy the Special Tax in Zone 1 until the amount of Special Taxes levied in Zone 1 is equal to the Zone 1 Special Tax Requirement. The Special Tax shall be levied in Zone 1 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessors Parcel of Undeveloped Property in Zone 1 at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 1 whose Maximum Special Tax is equal to 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. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 1 pursuant to steps two and three above,and City of Rancho Cucamonga December 9, 2002 CFD No. 2003-0I (IA No. 2) Page 7 (i) all authorized CFD No. 2003-01 (IA No. 2) Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 2)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. 2. ZONE 2 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 2 Special Tax Requirement and levy the Special Tax in Zone 2 until the amount of Special Taxes levied in Zone 2 is equal to the Zone 2 Special Tax Requirement. The Special Tax shall be levied in Zone 2 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 2 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 2 at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 2 whose Maximum Special Tax is equal to 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. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one.(above)when the Council no longer must levy a Special Tax in Zone 2 pursuant to steps two and three above,and (i) all authorized CFD No. 2003-01 (IA No. 2) Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 2)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. E. EXEMPTIONS 1. ZONE 1 No Special Tax shall be levied on Public Property in Zone 1. 2. ZONE 2 No Special Tax shall be levied on Public Property in Zone 2. City of Rancho Cacamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page 8 F. REVIEW/APPEAL COMMITTEE Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the amount of the Special Tax shall be appropriately modified. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes;provided,however,that CFD No. 2003-01 (IA No. 2)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 1. Payment in Full Only an Assessor's Parcel of Developed Property,or-Undeveloped Property for which a building permit has been issued, may be prepaid. The Special Tax obligation applicable to an Assessor's Parcel in CFD No. 2003-01 (IA No. 2) may only be prepaid after all authorized CFD No. 2003-01 (IA No. 2) Bonds have already been issued, or after the Council has covenanted that it will not issue any additional CFD No. 2003-01 (IA No. 2)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. The obligation of the Assessor's Parcel to pay any Special Tax may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel 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 the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 45 days prior to any redemption date for the CFD No.2003-01 (IA No. 2)Bonds to be redeemed with the proceeds of such prepaid Special.Taxes. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page 9 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: Paraeraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Maximum Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which building permits have already been issued, compute the Maximum Special Tax for the Assessor's Parcel to be prepaid as though it were already designated as Developed Property,based upon the building permit which has been issued for that Assessor's Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the estimated Maximum Special Taxes for the entire Zone in which the Assessor's Parcel is located based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development in such Zone, excluding any Assessor's Parcels in such Zone which have been prepaid; and 4. (a) For Assessor's Parcels in Zone 1, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 1 Bonds to compute the amount of Outstanding Zone 1 Bonds to be retired and prepaid; or (b) For Assessor's Parcels in Zone 2, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 2 Bonds to compute the amount of Outstanding Zone 2 Bonds to be retired and prepaid(in either(a) or(b)above, the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount for the appropriate Zone computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price — 100%), if any, on the Outstanding Zone 1 or Zone 2 Bonds to be redeemed(the "Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the City of Rancho Cucamonga December 9, 2002 CFD No. 2003-0I (IA No. 2) Page 10 current Fiscal Year until the earliest redemption date for the Outstanding Zone 1 or Zone 2 Bonds, as applicable. 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 amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Zone 1 or Zone 2 Bonds,as applicable,to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 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 reasonably assumed by the CFD Administrator in paragraph 8 (the "Defeasance Amount"). 11. The administrative fees and expenses of CFD No. 2003-01 (IA No.2)are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2003-01 (IA No. 2)Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 12. The reserve fund credit(the "Reserve Fund Credit")shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any,associated with the redemption of Outstanding Zone 1 or Zone 2 Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement(as defined in the Indenture)in effect after the redemption of Outstanding Zone 1 or Zone 2 Bonds, as applicable, as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Outstanding Zone 1 or Zone 2 Bonds, as applicable, is below 100% of the reserve requirement(as defined in the Indenture). 13. If any capitalized interest for the Outstanding Zone 1 or Zone 2 Bonds, as applicable, will not have been expended as of the first bond interest and/or principal payment date following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit").. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (1A No. 2) Page 11 14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 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 4, 5, 10, 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Zone I or Zone 2 Bonds,as applicable, or make debt service payments. The amount computed pursuant to paragraph I 1 shall be retained by CFD No. 2003-01 (IA No. 2). The Prepayment Amount may be sufficient to redeem other than a$5,000 increment of CFD No.2003-01 (IA No.2)Bonds. In such cases,the increment above$5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of CFD No.2003-01 (IA No.2)Bonds or to make debt service payments. Upon confirmation of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 (above), the CFD Administrator 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 for which the Special Tax obligation is prepaid in full in accordance with this Section H.1., 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 Maximum Special Taxes that may be levied within the entire Zone in which the Assessor's Parcel's Special Tax obligation is prepaid both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Zone 1 or Zone 2 Bonds, as applicable. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property and an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP= PEXF These terms have the following meaning: PP= the partial prepayment PE = the Prepayment Amount calculated according to Section H.1 City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (1A No. 2) Page 12-. F= the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of(i)such owner's intent to partially prepay the Special Tax,and (ii)the percentage by which the Special Tax shall be prepaid, and (iii)the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty(30)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 according to Section H.1, and (ii) indicate in the . records of CFD No. 2003-01 (IA No. 2) that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed 50 years commencing with Fiscal Year 2003-04, provided however that Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2003-01 (IA No. 2) Bonds have been paid; and (ii) all Authorized Facilities have been constructed. K.ICUmu2lRanchoCucamongaI ricfnriaGardewUZMAUmprovemenUrea2_3.doc Prepared.' 1219/02 _ City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 2) Page 13 ATTACHMENT A MAP OF ZONE 1 AND ZONE 2 PROPOSED BOUNDARIES SHEET 7 OF 1 SHEETS OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 IMPROVEMENT AREA NO. 2, ZONE 1 & 2 CRY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA -------- --- N".—_ -� i NA➢. NAP NA➢ 1 NAP. NAP. I NM. A. ' p NAP. ° \ NAP. NA➢. I NAP. \11 NAP. 1 I HAP 1 NAP. MM I H: E � I I B NAY. HAP. S xAP. a° x . L M.A.P. nuc sg9APM IDa+W Qp ___ _ __ _ 89K FI NAP. r _, NAP Y MN.I 1 NAP. � i 1 ZONE Z y N I I CHU }3g35 1 1 I I CXURCM OFN]LLC ac NAP NAP. 1 HAP. 1 APMRC'411J LLC O b 1 CHURCH GARD MM=J�ENSLLO 1 CWRA� ARM LN ION➢EILt LLC SP K 1 '4 A W P. MAP NAP. MAP. 1 Y Y fS l I L______'__---__— - HN. I NAP. IHAv. NAP. Y I °O NAP. i ZONE 1 I 1 i i c°M•cExvArspx I I APHPHOi1A r 1 os K I 1 GRAPHIC SCALE I L I F F fico a P3S soB loon x000 ITT = O I N FEET) ..CEAPNLSKN 2 IM.lO]M1 % ARMS 14, I138K �1 ' flAC]AU]8L Spl ��Y FYEC 14 'E fif Iu -Uh 38396^ L --._-----_—___— cmL MgOW ROYf! o-pLll FkEDWEOFMEOPTHECmUEMMo ECMOPR,wCXOCUcwONOA Ms YMF Mm MDS CONSULTING clrr aERc a THE aiv aF RAxcxo cDc.AICNrA 1 HEREBY CERTIFY THATTHE KITH.MAP SHOWING PROPOSEO BOUNDARIES OF CITY OF RANCHO CUCAMO4W COMMUNITY FAMMES 05TFnTIp.2Wb1. IMPROVEMENTAREAN ..3.GTYOFRNICHOWV MON ,COUNTYOFSAN6E UMO.STALEOPCAIMOMN ,WMB PRO OBYT CITYCON CF TMEGTY OF RWCXO CIICVAMIXIW AiA REQ4/.R MEETNG THEREOF.HEW CN MEQ DRY OFA 3M�6Y 1T5 PESOLVi1ON Ip.� LT'0.ERK OF INE CRYCF RANCHO FILED TMI$_WYOF _I Al THE HOUR OF OCLCCM µ.WOR OF MMS OFASSESSMENTAN]COMWN FACRRES DISTRICTS AT PAGES N THE OFFICE OR THE COUNTY RECOROER N THE CCNIIV OF S.W SERNMOHp.STATE OFCNMORNLI COUNTYRECMOEROFCOUNIYOFW1OERA4 HHO COMMUNITY FACILITIES DISTRICT NO. 2003-01 IMPROVEMENT AREA NO.2 ZONE 1 ASSESSOR PARCEL NUMBERS 229-021-62 229-021-63 229-021-64 ZONE 2 ASSESSOR PARCEL NUMBERS 227-211-39 227-211-40 227-211-41 227-211-42 227-211-43 EXHIBIT B-1 Assigned Special Taxes for Developed Property Community Facilities District No. 2003-01 Improvement Area 1 1 Developed Property $4,318 per Acre 2 Developed Property $36,294 per Acre 3 Developed Property $10,272 per Acre *Assigned Special Tax escalates by 2%per year. EXHIBIT B-2 Assigned Special Taxes for Developed Property Community Facilities District No. 2003-01 Improvement Area 2 M� r s8tg e�" ec► 1 Developed Property $2,799 per Acre 2 Developed Property $8,480 per Acre 'Assigned Special Tax escalates by 2%per year. EXHIBIT C-1 Maximum Special Taxes for Undeveloped Property Community Facilities District No. 2003-01 Improvement Area 1 VID L. r , , I Undeveloped Property $4,798 per Acre 2 Undeveloped Property $12,817 per Acre 3 Undeveloped Property. $11,413 per Acre 'Maximum Special Tax escalates by 2%per year. EXHIBIT C-2 Maximum Special Taxes for Undeveloped Property Community Facilities District No. 2003-01 Improvement Area 2 IZsea ea a 'mnm,S" ;ci e De cit a 1 Undeveloped Property $3,110 per Acre 2 Undeveloped Property $9,423 per Acre *Maximum Special Tax escalates by 2%per year. PROPOSED BOUNDARIES SHEET I OF I SHEETS OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 IMPROVEMENT AREA NO. 1 CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA j FAP. jNAP. MAP jj 1 MAP. P. NAP WNS%e N3.154a 1MCr M0.1gN] I I 1 I q I MAP. 3 NAP. RAP. I a \ MAP. A S NAP. NAP. I MAP. ;P. ♦ NAP. ` m1a1la a �Hl�f MN. j HlO AC. .1]K. 0 OIE10. NAP. MAP. M NMII]-1]tJ] -------------------- ---- ggI NAP r ZONE? M.P. I NAJ. y I I 'r •e 1 MAP. 1APMW�q.. 1 YK MAP. j V I APRW.N] vAC' j MAP. j I = ZONE Z 1 1 I a 1 , NAP I MII'I<)3N.la .NM NAP. I APRw 1DI4. r I YN1f]3NN Y Y Ib1IG p j I v I i aroma MAP. A.,18]SO,M j IaIC. NN NAP. IF � j ZONE 3 rWi5 Y1MNAlVAYS NAD. N.AP. 1 i I LEGEND. jI NAP. 1 I NAP. 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