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HomeMy WebLinkAbout6075_CCv0001.pdf RESOLUTION NO. 6075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS OF INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES WHEREAS, the City Council (the "City Council") of the City of Redlands (the "City") has received from Bixby Land Company (the "Owner") a written Petition (the "Petition"), requesting the institution of proceedings for the establishment of a community facilities district (the "Community Facilities District"); WHEREAS, the Owner is the owner of not less than 10% of the area of land proposed to be included within the Community Facilities District; and WHEREAS, under the Mello-Roos Community Facilities Act of 1982 (the "Act"), the City Council is authorized to establish the Community Facilities District; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DLANDS DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1, The City Council hereby finds that the Petition is signed by the requisite number of owners of land proposed to be included in the Contimmity Facilities District. Section 2. The City Council proposes to establish a corn.munity facilities district under the terms of the Act. The boundaries of the territory proposed for inclusion in the Community Facilities District are described in the map showing the proposed Community Facilities District on file with the City Clerk of the City (tlic "City Clerk"), which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the Community Facilities District in the office of the San Bernardino County Recorder within fifteen days of the date of adoption of this Resolution. Section 3. The name proposed for the Community Facilities District is "City of Redlands Community Facilities District No. 2002-1 (Redlands Business Center)". Section 4. The public facilities (the "Facilities") proposed to be acquired by the Community Facilities District pursuant to the Act through purchase as completed facilities are described under the caption "Facilities" on Exhibit A hereto, which is by this reference incorporated herein, The incidental expenses proposed to be incurred are identified under the caption"Incidental Expenses ' on Exhibit_A hereto. Section S. Except where funds are otherwise available, a special tax sufficient to pay for all Facilities, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District, will be annually levied within the Community Facilities District. The rate and method of apportionment of the special tax (the "Rate and Method"), in DOCSLA I A198952 sufficient detail to allow each landowner within the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is on file with the City Clerk, which is by this reference incorporated herein, The conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied are specified in the Rate and Method. The special tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall deten-nine, including direct billing of the affected property owners. The tax year after which no further special tax will be levied against any parcel used for private residential purposes is specified in the Rate and Method. Under no circumstances shall the special tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcelor parcels within the Community Facilities District by more than 10%. For purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which all occupancy pert-nit for private residential use is issued. Section G. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself the right and authority to allow any interested owner of property within the Community Facilities District, subject to the provisions of said Section 53344.1 and to those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the Community Facilities District treasurer in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. Section 7. The City Council hereby fixes Tuesday,November 5, 2002, at 7:00 p.m., or as soon thereafter as the City Council may reach the matter, in the City Council Chambers, 35 Cajon Street, Suite 2, Redlands, California, as the time and place when and where the City Council will conduct a public hearing on the establislu-nent of the Communit Facilities District. Cy Section 8. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the Community Facilities District. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing, Said notice shall contain the in-formation prescribed by Section 53322 of the Act. Section 9. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the Community Facilities District at a special, election. The proposed voting procedure shall be by inailed or hand-delivered ballot anion-, the landowners in the Community Facilities District, with each owner having one vote for each acre or portion of an acre such owner owns in the Community Facilities District. Section 10. Each officer of the City who is or will be responsible for providing one or more of the proposed types of Facilities is hereby directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or DOCSLA 1:419895.2 2 her opinion be required to adequately meet the needs of the Community Facilities District, and his or her estimate of the cost of providing the Facilities. Such officers are hereby also directed to estimate the fair and reasonable cost of the Facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid. Such report shall be made a part of the record of said public hearing. Section 11. The Owner has heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to a Deposit and Reimbursement Agreement, dated as of July 1, 2002 (the "Deposit Agreement"), by and between the City and the Owner. The Deposit Agreement is hereby incorporated herein as though set forth in full herein. Section 12. The Owner has heretofore performed or constructed or caused to be performed or constructed certain work in-kind, and the net may perforin or construct or cause to be performed or constructed additional work in-kind, constituting a part of the Facilities. The conditions under which any such work in-kind constituting a part of the Facilities may be accepted shall be specified in an agreement {the "Acquisition and Funding Agreement") to be entered into by the Community Facilities District and the Owner; provided, however, that, prior to the Community Facilities District's entering into such Agreement, such Agreement shall have been approved by resolution of the City Council. The City Council proposes to reimburse Owner for the value or cost, whichever is less, of such work in-kind constituting a part of the Facilities as may be accepted, without interest, solely from the proceeds of special taxes levied within the Community Facilities District and the proceeds of special tax bonds issued by the Community Facilities District. The conditions under which the value or cost, whichever is less, of such work in-kind may be reimbursed to Owner shall be specified in the Acquisition and Funding Agreement-, provided, however, that such conditions shall include the condition that the proposed special tax be approved by the qualified electors of the Community Facilities District pursuant to the Act. Section B. The officers and employees of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section W. This Resolution shall take effect immediately upon its adoption. DOCSIA1:419895,2 3 Section 15. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED, APPROVED AND ADOPTED this October 1, 2002. Mayor ATTEST: ,6ty Clerk DOC SIA 1:41c)895.2 4 CITY OF REDLANDS COUNTY OF SAN BE IN STATE OF CALIFORNIA 1, Lorne Poyzer, City Clerk of the City of Redlands, DO HEREBY CERTIFY that foreaoing Resolution was duly passed and adopted at a regular meeting of the Redlands City Council held.on October 1, 2002, with the following roll call vote, to wit: AYES: CITY COUNCIL MEMBERS: Pe ter, Gilbreath, George Harrison; Mayor Haws NOES: CITY COUNCIL MEMBERS: None ABSENT: CITY COUNCIL MEMBERS: None CITY Ci (SEAL) The foregoing is the original Resolution, duly passed and adopted by the Redlands City Council at its regular meeting held on October 1, 2002. CITY CLEW, DOCSI,M419845-2 EXHIBIT A FACILITIES, COMPLETED FACILITIES AND INCIDENTAL EXPENSES Facilities The planned facilities are street improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, water distribution facilities, the construction or undergrounding of natural gas pipeline facilities, telephone lines, facilities for the transmission or distribution of electrical energy and cable television lines, and land, rights-of-way and easements necessary for any of such facilities. Incidental Expenses Incidental expenses proposed to be incurred include the following: (a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities 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 Community Facilities District; and (c) any other expenses incidental to the construction, completion, and inspection of the authorized,work. [WSLA 1�4199952 A-i PETITION TO CREATE A COMMUNITY FACtLITIES DISTRICT (Including Waiver) City Council City of Redlands PO Box 3005 35 Cajon Street Redlands,Califort-da 92373 Members of the City Council: This is a petition to create a community flicilifies district, and a waiver v4th respect to certain procedural matters, under the Mello-Roos Community Facilities Act of 1982 (the "Act% and the undersigned hereby states as follows - 1. ]!Zht"ren rz This petition is submitted by Bixby Land Company ("Petitioner"), as the legal owner of the property described in Exhibit A attached hereto and triade a part hereof, which is= proposed to be included 'within the community filities district. By submitting this petition, Petitioner wan-ants to the City of Redlands (the "City) that it is the legal owner of such land and-that such land constitutes not less than 1011/a of the area of land proposed to be included within the community facilities district. 2. J!MCed1ngj,1 eguested. Petitioner hemby requests that the City Council of the City institute proceedings pursuant to the Act to establish a community facilities district to be designated "City of Redlands Community Facilities District No. 2002-1 (Redlands Business Center)" (the "Community Facilities District"), to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District in an amouat of not to exceed$12,000,000. 3. J]nundadgs of Cammunity Eacilities DhaLdet. The boundaries of the territory which is proposed for inclusion in the Community Facilities Disuict are described in Exhibit B attached hereto and made a pail hereof 4. Upm- of F's cilities The types of facilities to be financed by the Community Facilities District are described in Exhibit C attached hereto and made a part hereof. 5. Elections. Petitioner hereby requests that the special elections to be held under the Act to authorize the special taxes, to authorize the issuance of the bonds and to establish an appropriations limit for the Co unity Facilities District be consolidated into a single election and that the election be conducted by the City and its officiais using mailed or hand-dclivered ballots and that such ballots be opened and canvassed and the results certified at the same ineeting of the DOCSLAL-41987-21 City Council as the public hearings on the Community Facilities District under the Act or as soon thereafter as possible. 6 To expedite the completion of the proceedings for the Community Facilities District, petitioner hemby waives all notices of bearings Gather than published notices required under the Act)and all notices of election,all applicable waiting periods under the Act for the election and all ballot analysis and arguments for the election.; 7. ailin rt Arun. The address of the Petitioner for receiving notices is: 4525 Atherton Street, Long Beach,California 90815 attn.- A. Tenwee Dickens. This petition is dated August 11 2002. R `'+�'LAND COMIIANY,a California.corporation; r A. Terrance Dickens President and Chief Executive Officer. By: Mrk L.BiAy "'dice President and Secretary LAL419872.2 EX14TRIT A PROPERTY DESCRIPTION That certain real Pr perty situated in the State of California; County of San Bernardino, more particularly described as follows: The following an Bernardino County Parcel Numbers 0167-481-05-0000 0157-50105-0000 0167-511-05-0000 0167-511-06-0000 4107-541-43-0400 0167-511-07-0000 DOCSIAI'4199'72 2 A-I EXHIBIT B IiOUNDARRIES OF COMMUNITY"FACILITIES DIS"T"RICT The boundaries of the territory which is proposed for inclusion its the Community Facilities District are Depicted in the attached reap. Such territory is identified as the following San Bemardino County Assessor Parcel los_: e r; SM BER AERDINO AVENUE C.F.D.BOUNDARY A w LU ALMOND AVENUE A s OWAw (FUTURE) AV 0 N Q .3 N. yp y pypua��qgy����+�, /q�+ 9 i LUGONLA TiY UE fN � 10 REEWAY C.F.D. BOUNDARY CFD 2002-1 GROSS ACRES = 227.37' NET ACRES 198 EXMBIT C TYPES OF FACILITIES 1'he types of facilities to be financed by the Community Facilities District are as follows. The planned facilities are street improvements, including grading,paving,curbs and gutters, sidewallks, street signalization and signage, street lights land parkway and landscaping related thereto, sewers, storm drains, water distribution facilities, the construction or undergrounding of natural gas pipeline facilities, telephone lines, facilities for the transmission at distribution of electrical energy and cable television lines,and land,rights-of-way and easements necessary for any of such facilities. DOCSLAIA198721 C-1 RATE AND METHOD OF APPORTIONMENT FOR CITY OF REDLANDS COMMUNITY FACILITIES DISTRICT NO. 2002.1 (REDLANDS BUSINESS CENTER A Special Tax as hereinafter definedshall be levied on all Assessor's Parcels in the City ofRedlands Community Facilities District No. 2002-1 (Redlands Business Center) ("CFD No. 21102-1") and collected each Fiscal Year commencing in Fiscal Year 2003-04,in an amount determined by the City Council of the City of Redlands,through the application of"the Rate and Method of Apportionment as described below. All Assessor's parcels in CFD leo. 2002-1, 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 1`otfap, the lana area shown on the applicable final reap,parcel map,condominium plan,or other recorded County parcel map: "Act" means the Mello-Roos Community Facilities Act of 1982,as amended,being Chapter 2. `, Division 2 of Title 5 of the Government Code of the Mate of California. "Administrative Expenses" means the following actual or reasonably estimated casts directly related to the administration of CFD leo. 2002-1: the costs of computing the Special Taxes and preparing the annual Special Tax, collection schedules (whether by the City or designee thereof or both);the costs of collecting the Special Taxes(whether by the Cou4y or otherwise); the costs ofremitting 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. 2002-1 or any designee thereof of comply ng with arbitrage rebate requirements; the costs to the City, CFD No 2002-1 or any designee thereof of complying with City, CFD No. 2002-1 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;the costs of the City,CFD No.2002-1 or any,desiaee thereof related to an appeal of the Special Tax;the costs associated with the release offunds from an escrow account; and the City's annual administration fees and third party expenses related to the administration of CFD No. 2002-1. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2.002-1 for any other administrative; purposes of CFD No. 2002-1, including attorney's fees and other costs related to commencing and pursuing to completionany foreclosure of delinquent Special Taxes. City of Redlands Se tenaher 4,2002) CFD V& 2002-1 (Redlands Business+Cewter) vt>3 r "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. "'Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Bonds" means any bonds or other debt(as defined in Section 53317(d)of the Act),whether in one or more series, issued by CFD No. 2002-1 under the Act. ""CFD No.2002-1" means the City of Redlands Community Facilities District No, 2002-1 (Redlands Business Center). "City" means the City of Redlands. "Council" means the City Council of the City. "County" means the County of an Bernardino. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property, for which a building pen-nit for new construction was issued after Jarman, 1, 2002 and prior to January I of the prior Fiscal Year, "Finance Director" the Finance Director of the City or his or her designee, "Fiscall Year" means the period starting July I and ending on the following June 30, "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued,as modified,amended andlor supplemented from time to time. "Land Use Class" means any oft e classes listed in Table I below. "Maximurn Special Tax" means the Maximum Special Tax,determined in accordance with Section C below, that can be leiin ariv Fiscal Year on any Assessor's Parcel, Ied "Non-Residential Property" means all Assessor's Parcels of Developed Property forwhich a building permit was issued for a non-residential use, "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the tridenture. City qj'Redlands 'Veptember 4,2002 CFD No. 2002-1 (Redlands Business Center) "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maxitritrin Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. For Taxable Public Property and Taxable Property Owner - Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Taxable Public Property or Taxable Property Owner Association Property, as applicable. "Property Owner Association.Property" means, for each Fiscal Year,any property within the boundaries of CFD No. 2002-1 that was owned by a property owner association, including any master or sub-association, as of January I of the prior Fiscal Year. "Public Property" means, for each Fiscal Year.any property within CFD No. 200?-1 that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the County,the City or any other public agency as of June 30 of the prior Fiscal Year; 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. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the Finance Director in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2002-1 to: (i) pay debt se rt ,,ice on all Outstanding Bonds in the calendar year beginning in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii)pay Administrative Expenses; iv)pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v)pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes lcvied in the previous Fiscal Year; less (vi) a credit for funds available to reduce the annual Special Tax levy, as determined by the Finance Director pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2002-1 which are not exempt from the Special Tax pursuant to law or Section E below. City of Redlands September 4, 2002 CFDAlo. 2002-1 (Redlands Business Center)' ilap ? "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section_E.below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property"means,foreach Fiscal Year,all Taxable Propertynot classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGQRIES Each Fiscal Year, all Taxable Property within CFD No. 2002-1 shall be classified as Developed Property,Taxable Public Property,Taxable Property Owner Association 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 SEECIAL TAX I. Developed Property a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assiped Special Tax The Fiscal Year 2003-04 Assigned Special Tax for each Land Use Class is shown below in Table I. TABLE I Fiscal Year 2003-04 Asci g ed Special Taxes for Develo ed Prnnerty 3 e u ,a U De signed Sp lass, D L"ai�idUse Class i:cs�n rJoi As gned eciLal Tax pt ............... C I I Non-Residential Property $3,434 per Acre 2 Residential Property, $4,448 per Acre City of Redlands Septem ber 4,20#2 CFD No. 2002-1(Redlands Business Center) Pate 4 c> Backun Special Tax The Fiscal Year 2003-04 ackup Special Tax shall equal $4,445 per Acre:: d. Increase in the Asslaned Snecial Tax and Backup Special Tags;; The Assigned Special Tax for each Land Use Class and the Backup Special Tax shall increase, commencing on July 1, 2004 and on July I of each Fiscal Year thereafter, by an arnount equal to tufo percent (2%) of the applicable Assigned Special Tax or Backup Special Tax for the previous Fiscal Year. 2. Undeveloped Property,Taxable Public Property,and Taxable Property Owner` Association Property The Fiscal Year 2003-04 Maximum Special Tax for Undeveloped Property,Taxable Public Property, and Taxable Property Owner;Association Property shall be$4,448 per Acre,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 Tags for the previous:Fiscal Year, D. METHOD OF APPORTIONMENT OF THE SPECIAL IAL TAX Commencing with Fiscal Year 2003-04 and for each following Fiscal Year,the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equal the Special Tax Requirement. The Special "Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor='s Parcel of Developed Property at uta to 100 of the applicable Assigned Special Tax; Second. If additional monies are needed to satisfy the Special Tags Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped property at up to 100%of Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the:first two steps have been completed,then the levy of the Special Tax on each Assessor's Parcel of Ike-vreloped Property whose Maximum Special Tax is determined through the application of the Backup Special Tars shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such.Assessor's Parcel;. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first. three steps have been completed,then the Special Taal shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property,and Taxable Property Owner Association Property up to the Maximurn Special Tax for Taxable Public Property orTaxable Property Owner Association Property. E EXEMPTIONS No Special Tax shall be levied on up to 28.69 Acres of Public Property and/or Property= Owner Association Property`. Tax-exempt status will be Irrevocably assigned by the Finance Director in the chronological order in which property`becomes Public Property or Property Owner Association Property. However,should an Assessor's Parcel no longer be classified as Public Property=or Property Owner Property, its tax-exempt status will be revoked. Public Property or Property Owner Association Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed- Proportionately as part of the fourth step in Section D above,at up to 100%of the applicable Maximum Special Tax for Taxable Public Property or Taxable Property Owner Association Property: F APPEALS AND INTERPRETATIONS Any taxpayer may tike a written appeal of the Special Tax on hisi'her property with the Finance Director,provided that the appellant is current in his/ ler pay rnents of Special`faxes. Daring the pendency of an appeal, all Special Taxes previously levied roust 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 Finance Director shall review the appeal, meet with the,appellant if the Finance Director deems necessary, and advise the appellant of its determination, if the Finance Director agrees with the appellant, the Finance Director shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the Finance Director disagrees;with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the Finance Director's determination. The council shall consider the appeal and male a final determination within 0 days of receipt of the appeal; Interpretations may be made by the Council by ordinance or resolution for purposes o clarifvdng any vagueness or ambiguity in this bate and Method of Apportionment. G. MANNER OF COLLECTION The Special Tax will be collected in the saute trianner and at the same time as ordinary coal valorem property taxes, provided, however, that CFD No. 2002-1 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose;on delinquent Assessor's Parcels as pen-nitted by the Act. City of Redlands September 4,2002 `FD No. 20112-1 (Redlands Business Centers paase 6 H PREPAYMENT OF SPECIAL TAX 1. Prepayment in Full The following definition applies to this Section fl;' "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payi-rient date following the current Fiscal Year. The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and permanently satisfied as described herein,provided that a prepayment may he made only for Assessor's Parols of Developed Property or Undeveloped Property for which a building; permit has been,issued;and only if there are no delinquent Special Taxes }ith 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 Finance Director with written notice of intent to prepay; Within 30 clays of receipt of such written notice,the Finance Director shall. notify such owner of"'the prepayment amount of such Assessor's Parcel. The Finance Director may charge a reasonable fee for providing this seri°ice. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as define ,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; Para ra h No.: L Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. For Assessor's Parcels of Developed Property,compute the Assianed Special Tax for the current Fiscal Year, For Assessor's Parcels ofUndeveloped Property for which a building permit has leen issued., compute the Assigned Special Tax for the current Fiscal Year for that Assessor's Parcel as though it vv°as already designated as Developed Property. Celt,of'Redlanos .September 4,2002 Cl 1);V,o. 2002-I(Redlands Business Center) Pt ire 7 3. Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Special Taxes for the entire CFD No. 2002-1 based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2002-1, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeerned (the "Redemption Premium"), 6, Verify the administrative fees and expenses of CFD No. 2002-1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 7. 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 Bonds. 8. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid, 9. Compute the mininmin amount the Finance Director reasonably expects to derive from the reinvestment of the Prepayment Amount (as defined below) less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepawn. ent, 10Add the amounts computed.-pursuant to paragraphs 7 and 8 and subtract the amount Computed pursuant to paragraph 9 (the "Defeasance Aniount"). 11. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement-(as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment(the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are.below 100% of the reserve requirement. 12. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal pkvirient 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'Redlands September 4, 2002 CID No. 2002-1 (Redlands Business Center) Paue 8 13. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4. 5, 6 and 10, less the amounts computed pursuant to paragraphs I I and 12 (the "Prepayment Amount"). 14. From the Prepayment Amount,the amounts computed pursuant to paragraphs=1,5, 10 11 and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments, The amount computed pursuant to paragraph 6 shall be retained by CID No.2002-1-k The Prepayment Amount may be sufficient to redeem other than a 55,000 increment of 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 bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 8 (above),the Finance Director shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act,to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Assigned Special Taxes that may be levied on Taxable Property within,CFD No. 2002-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property or all 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 = PE x F. 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 Finance Director of such owner's intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The Finance Director shall provide the owner with a City.of Redlands September 4, 2002 CFDNo. 2002-1(Redlands Business Center) Pape 9 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(11)indicate in the records of CFD No. 2002-1 that there has been a partial prepayment of the Special Tax - and that a portion of the Special Tax with respect to such Assessors Parcel, equal to the outstanding percentage(I.00-F)of the remaining Maximum Special Tax,shall continue to be levied on such Assessor's Parcel pursuant to Section D. I. TER-Nil-OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed fifty years commencing with Fiscal Year 2003-04. K:',,CiiciitsZ'xREDLt1NDS',mell4 cfd2l)02-I`,,rma,,RM,, AfinaLdoc QV of Redlands September 4,2002 CFD,,Vo. 2002-1(Redlands Business CenterPave 10