ECI De\leIopluent Services~ LLC

March 31. 2006

fvir. Charles Kungu\luniCJp. Inc.10(1) Old Columbia Rd .. Suite 13-215Columbia. iv1D 21046

Re: 566.740.000Broad Street Community Development Authority(Richmond. VA) Revenue Bonds. Series 2003Developer's Continuing Disclosure Statement

Dear :vlr. Kungu:

In accordance \\ith the "Continuing Disclosure Agreement" (the "Disclosure Agreement") byand between the undersigned. Broad Street Community DeveJopment Authority (the"Authority"). EClln\'estment Advisors (the "Developer") and MuniCap, Inc, (the"!\dministrator") dated as 01' ~\'1ay 15. 2003: the Developer hereby provides the f()J!O\vinginformation as of ivlarch 31, 100(1. All te!1llS having initial capitalization and not defined hereinshall havc the meanings set forth in the Limited Offering Memorandum dated as of May 9,2003.I () the best of the knowkdge of the undersigned:

1) S_ta_t_LlsoL.(onstruction an~LColllpletion of the hlcilities as described in the Dev(.'lopmen.t!\!oll\:.'cmcnt (See Ex.hibit A attached):

~) Statement of ljnancing not tll!1dG.~j with Bond Proceeds: The developer conf1rms that he hasnot obtained any additional financing f()r the completion of the project.

3) ~J.0I£!I_le_n_t.as to Available J:_ul_lt_is: The developer continns that there are sufficient funds (bothblmd tinanccd and non-bond financed) available to complete the CDA developmcllt ascontcmplated.

-!) l£gL~lativt'. Adrninistrati\,'e or Judicial ChallcllRcs: There have been no legislative.adm in istrati ve, or.i ud icial chaJlenges to the construction or development within the district.

5) _S_t<ml,s.J;)JanvGovernll1elltat~\PlRQ~:~.lls: The developer knows orno new or pendinggovernmental approvals since the closing of the bonds.

Blues Armory Suite z:m 550 East Marshall 51. • Richmond. Virginia 23219. DL.'M' lUll ,QQ n:;QC\ • j:'"v' RIM 7J.:~ 111,7';

Broad Street CDA (Richmond, VA)Revenue Bonds, Series 2003

Developer's Continuing Disclosure StatementPage 2 of2

Title:

6) Section 3c Events: The developer confirms that he has no actual knowledge of theoccurrence of any Events, as described in Section 3c (pages G-6 through G-7) in theAgreement.

Mr. Michael '1'.' aingExecutive [ice/

..

Pres ident

Date: __ ~-ll)'_)' Jjo_O&_, .__ .... _.__

2

Exhibit A

City Center Improvement Project - Broad Street CDABudget Statistics ReportDraw 30: March 2006

Original Budget Current Costs Expended Balance To BudgetCost Center Budget Changes Budget To-date Be Spent Change #

1. Property Acquisition $9,217,372 (59,145.26) $9,158,226.74 $9,158,226.74 0.00 2,6,9,22,24,26

2. Atlantic Life Site - 6th & GraceEnvironmental Remediation $655,000 866.25 $655,866.25 $655,866.25 0.00 8,10,13,14,26Demolition Costs $1,207,025 36,049.40 $1,243,074.40 $1,243,074.40 0.00 8,10,13,14,24,26Construction Costs - Surface Lot $663,500 (16,236.42) $647,263.58 $647,263.58 0.00 8,14,24,26,28

Subtotal $2,525,525 20,679.23 $2,546,204.23 $2,546,204.23 0.00

3. G.C. Murphy Site - 5th & BroadEnvironmental Remediation $295,898 0.00 $295,898.33 295,898.33 0.00 8,10,15Demolition Costs $1,088,147 15,283.74 $1,103,430.74 1,103,430.74 0.00 8,10,15Construction Costs - Surface Lot $531,811 237.43 $532,048.43 542,234.33 (10,185.90) 8,15,27,28,29

Subtotal $1,915,856 15,521.17 $1,931,377.50 1,941 ,563.40 (10,185.90)

4. Parking Deck - 5th & MarshallProperty Acquisition $13,490,667 0.00 $13,490,666.81 $13,490,666.81 0.00 3Construction & Engineering Costs $922,000 59,640.19 $981,640.19 $981,640.19 0.00 3,8,16,27,28,29

Subtotal $14,412,667 59,640.19 $14,472,307.00 $14,472,307.00 0.00

5. Parking Deck - 6th & FranklinConstruction Costs $2,587,000 61,283.81 $2,648,283.81 $2,648,283.81 0.00 8,17,24,26,

Subtotal $2,587,000 61,283.81 $2,648,283.81 $2,648,283.81 0.00 27,28

6. Parking Deck - 7th & MarshallConstruction Costs $2,934,000 192,835.54 $3,126,835.54 $3,126,835.54 0.00 8,20,24,28,29

Subtotal $2,934,000 192,835.54 $3,126,835.54 $3,126,835.54 0.00

Exhibit A

Budget Statistics Report (cont.)

Original Budget Current Costs Expended Balance To BudgetItem Budget Changes Budget To-date Be Spent Change #

7. 6th Street MarketplaceDemolition Costs $1,039,987 (7,775.82) $1,032,211.18 $1,032,211.18 0.00 7,8,18,26Fagade Restoration $1 ,434,500 112,147.82 $1,546,647.82 $1,060,617.63 486,030.19 23,24,28,29

Subtotal $2,474,487.00 104,372.00 $2,578,859.00 $2,092,828.81 486,030.19

8. StreetscapingDesign & Construction Costs $5,543,000 1,062,098.29 $6,605,098.29 $6,656,144.29 (51,046.00) 8,21,24,26,28,29Coliseum Area Improvements $1,300,000 (560,534.38) $739,465.62 $739,465.62 0.00 24,26,28,29

Subtotal $6,843,000 501,563.91 $7,344,563.91 $7,395,609.91 (51,046.00)

9. Construction Contingency $611,796 (611,796.47) $0.00 $0.00 0.00 1,2,4,5,6,7,9,1011 ,12,14-24,26,

27,28,2910. Proj. Management and Misc. Costs

Development Coordination Expenses $1,400,000 0.00 $1,400,000.00 $1,400,000.00 0.00 1Project Development Fee $1,401,800 83,069.16 $1,484,869.16 $1,485,055.27 (186.11 ) 28,29Project Feasibility (reimb. to City) $275,136 0.00 $275,135.53 $275,135.53 0.00 2

Subtotal $3,076,936 83,069.16 $3,160,004.69 $3,160,190.80 (186.11 )

11. Other Professional Fees $288,561 (54,846.34) $233,714.66 $233,214.66 500.00 5,8,12,13,24,2829

12. Community Information $200,000 (69,679.63) $130,320.37 $133,320.37 (3,000.00) 4,28,29

NET TOTAL FOR BOND FINANCING $47,087,200.14 243,497.31 $47,330,697.45 $46,908,585.27 422,112.18

13. Public UtilitiesProfessional Fees $1,002,810 114,126.43 $1,116,936.43 $1,116,936.43 0.00 25Construction $5,357,890 (114,126.43) $5,243,763.57 $5,559,861.95 (316,098.38)Added Scope $0 2,289,758.25 $2,289,758.25 $2,246,375.48 43,382.77City Reimbursement for Added Scope $0 (2,289,758) ($2,289,758.25) (1,973,659.87) 316,098.38

$6,360,700 0.00 $6,360,700 $6,676,798 43,382.77

TOTAL PROJECT 53,447,900.14 243,497.31 53,691,397.45 53,585,383.65 465,494.95

Exhibit A

Budget Change Log

_D_at_e Chanqe No. Budqet Cateqorv Amount Explanation7/31/03 1 Proj. Mgmt. / Dev. Coord. 250,000.00 Reduce Develop. Coord.

Contingency 250,000.00 per final Develop. Agreement

7/31/03 2 Proj. Mgmt. / Feasibility 135.53 Reflects actual finalProperty Acquisition (589,000.00) costs at closingContingency 588,864.47

7/31/03 3 Acquisit. - 5th & Marshall (9,333.19) Reflects actual finalConstruc. - 5th & Marshall 9,333.19 costs at closing

7/31/03 4 Community Information 200,000.00 Establish budget for projectContingency (200,000.00) public relations efforts

7/31/03 5 Legal Expenses 50,000.00 Establish budget for misc.Contingency (50,000.00) project legal expenses

9/15/03 6 Tenant Relocations (50,000.00) Reflects revised buy-outContingency 50,000.00 projections

9/15/03 7 6th Street Marketplace 450,000.00 Budget increase due toContingency (450,000.00) est. buy-out amounts

9/15/03 8 Other Professional Fees 179,000.00 Set-up separate accts. forAtl. Life Precon/MBE (25,000.00) preconstruction and MBEGC Murph. Precon/MBE (25,000.00) consulting services5th & Marsh. Precon/MBE (18,000.00)6th & Frank. Precon/MBE (18,000.00)7th & Mars. Precon/MBE (18,000.00)Marktplc. Precon/MBE (25,000.00)Stscape Precon/MBE (50,000.00)

12/1/03 9 Tenant Relocations (85,000.00) Reflects Final buy-out projectionsContingency

12/1/03 10 Atl. Life Environ. Abate. (1 ,041 ,500.00) Reflects contract buy-outs forAtl. Life Demolition 295,500.00 Atlantic Life and GC MurphyGC Murphy Environ. Abate (201,500.00) Abate and Demo ContractsGC Murphy Demolition 310,000.00Contingency 637,500.00

Exhibit A

Budget Change Log (continued)

12/1/03 11 6th Street Mktplc. Demo. 404,000.00 Finalize Buy-outs and est.Contingency (404,000.00) fagade restoration

12/1/03 12 Professional Fees (15,439.00) Close-out Pre-constructionContingency 15,439.00 services contract

12/31 /03 13 Other Prof Fees-Const. Consu (240,000.00) Set-up separate account forMarketlc. Const. Cons. 67,000.00 construction consultantAtl. Life-Env Const. Cons. 37,500.00Atl. Life-Demo Const Cons. 62,500.00GC Murph-Env Const. Cons. 18,500.00GC Murph-Demo Const Cons 54,500.00

4/30/04 14 Atl. Life Remediation 20,000.00 Reflect final costs for demoAtl. Life Demolition 79,025.00 and abatement, plus parkingAtl. Life Surface Lots (316,500.00) lot buyout savingsContingency 217,475.00

4/30/04 15 GC Murphy Remediation (36,102.00) Reflect final costs for demoGC Murphy Demolition 65,647.00 and abatement, plus parkingGC Murphy Surface Lots (436,189.00) lot buyout savingsContingency 406,644.00

4/30/04 16 5th & Marshall (19,333.00) Reflect 5th & Marshall Buy-outContingency 19,333.00

4/30/04 17 6th & Franklin (110,000.00) Reflect 6th & Franklin Buy-outContingency 110,000.00

4/30/04 18 6th Street Marketplace (140,013.00) Reflect final 6th St. Demo CostsContingency 140,013.00 before fagade restoration

4/30/04 19 Other Professional Fees (190,000.00) Revise MBE consultant budgetContingency 190,000.00 to reflect current contract.

Reallocate construction consultantto individual projects

4/30/04 20 7th & Marshall Garage (538,000.00) Reflect 7th & Marshall Buy-outContingency 538,000.00

Exhibit A

4/30/04 21 CDA Streetscape 212,600.00 Reflect revised StreetscapeContingency (212,600.00) Improvements estimate of costs

4/30/04 22 Acquisitions 200,000.00 Allowance for final settlement - 206 N. Fifth S1.Contingency (200,000.00)

4/30/04 23 6th Street Fagade Restoration 1,434,500.00 Set-up new cost center for fagadeContingency (1 ,434,500.00) restoration / improvements

5/17/04 24 Acquisitions (22,628.00) Misc. project close-out reconciliationsAt!. Life Demolition 5,000.00At!. Life Surface Lot (15,000.00)6th & Franklin Garage (150,000.00)7th & Marshall Garage (75,000.00)6th S1. Marketplace 18,000.00Streetscape 100,000.00Coliseum / Food Court 300,000.00 Create additional streetscape and

food court renovation budgetProfessional Fees 75,000.00 Create Inspecting Engineer budgetContingency (185,372.00)

6/30/04 25 Public Utilities Pub Util upgrades (5,438,000) Reallocated budget toElect Util (922,700.00) reflect actual catagoriesConstruction 5,357,890.00Prof Fees 1,002,810.00

10/26/2004 26 Acquisitions (59,145.26) Final Close-outAtlantic Life 20,197.02 Projected Close-out6th & Franklin Garage (20,000.00) Projected Close-out6th Street Marketplace Demo (7,775.82) Final Close-outFood Ct Ren / Art Program (550,000.00) On Hold6th Street Fagade 103,628.00 Additional RepairsStreetscape 790,772.00 Actual Buy-out OverrunContingency (277 ,675. 94)

2/15/2005 27 GC Murphy Surface Lot 10,999.86 Projected Close-out5th & Marshall Deck 54,000.00 Projected Close-out6th & Franklin 66,000.14 Projected Close-outCommunity Information (50,000.00) Revised CI BudgetContingency (81,000.00)

5/20/2005

12/6/2005

28

29

Atlantic Life Suriace LotGC Murphy Suriace Lot5th & Marshall Deck6th & Franklin7th & Marshall Garage6th Street FagadeStreetscapeProject ManagementContingencyOther Professional FeesCommunity Information

ContingencyStreetscapeGC Murphy Suriace Lot5th & Marshall Deck7th & Marshall Garage6th Street FagadeProject ManagementOther Professional FeesCommunity Information

482.21 Final Close-out2,312.00 Final Close-out2,696.20 Projected Close-out

15,283.81 Projected Close-out177,165.00 Projected Close-out(91,098.66) Projected Close-out142,896.97 Projected Close-out54,200.00 Added Scope

(233,120.53)(50,817.00) Final Close-out(20,000.00) Projected Close-out

(20,000.00) Streetscape Close-out117,894.94 Streetscape Close-out

2,209.31 Close-out2,943.99 Close-out

15,670.54 Close-out99,618.48 Projected Close-out28,869.16 Close-out(4,029.34) Projected Close-out

320.37 Close-out

Exhibit A