Statewide Community Infrastructure Program

Making Business In Corona, CA Easier, Faster, Better…

“SCIP”

Prepared For TeamCorona.com

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SCIP Overview

Program: Statewide Community

Infrastructure Program “SCIP”

Purpose: Financing of Development Impact Fees

- Building Permit Fee Reimbursement Program- Impact Fee Pre-Funding Program

- Acquisition Financing Program

Security: 1913/1915 Act Special Assessment Obligations

- Established Statewide, County-by-County

Finance Team: RBC Capital Markets – Bond Underwriter

Orrick, Herrington & Sutcliffe – Legal Counsel

Bond Logistix – Program AdministrationMuniFinancial/Willdan – Assessment EngineerWells Fargo – Trustee

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Impact Fee Reimbursement Program:

Impact Fee Pre-Funding Program:

Acquisition Funding:

CFD Financing:

Reimburses property owners for Impact Fees collected when a Building Permit is Issued

Provides advance funding of Impact Fees required as a condition of land entitlements

Reimbursement, Pre-Funding Programs and Acquisition Funding can be combined.

Provides funding of improvements completed by developer. Local agency administers the acquisition agreement

SCIP Programs

CFDs can be funded by SCIP through CSCDA on an issue-by-issue basis

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Street and Roadways

Freeway Interchanges

Pedestrian Malls

Sidewalks

Storm Drainage

Flood Control

Water Supply

Street Lighting Parking Landscaping Sewer and Pipelines Parks and Parkways Bridges and Thoroughfares Bicycle and Pedestrian Trails Opens space and Greenbelts

- Infrastructure costs to be publicly owned by a governmental

agency (except school fees)

- Improvements identified in the 1913/1915 Assessment Act,

including (but not limited to):

Eligible Fees and Improvements

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Sample Impact Fee Schedule (Residential)

Impact FeesEligible for SCIP Reimbursement

Sewer 4,500$ 4,500$ Water 2,630 2,630 Traffic 2,885 2,885 Transit 35 35 Regional Traffic Fees 35 35 Drainage 350 350 Parks 2,218 2,218 Fire/Police 668 *Habitat/Greenbelt 35 35 Affordable Housing 50 *Capital Improvement/Public Facilities 1,110 1,110 School Impact Fee 6,468 *TOTAL 20,984$ 13,798$

* Fees not Eligible for SCIP Financing

Amount that can be Reimbursed from SCIP

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Sample Assessment Lien (Residential)

Total SCIP Eligible Fees 13,798$ Plus:

Debt Service Reserve Fund (7.5%) 1,183

Costs of Issuing Bonds (5.5%) 879

Total Assessment Bond Lien 15,860$

Amortization Term (Years) 30 Assumed Interest Rate 5.25%

Annual Assessment Due* 1,087$

*Preliminary and Subject to Change

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Sample Impact Fee Schedule (Commercial)

Amount that can be Reimbursed from SCIP

Impact Fees Eligible for SCIP Reimbursement Per Sq Ft

Law Enforcement 84,400$ * 0.84$ Fire Protection 30,400$ * 0.30$ Bridges, Signals & Streets 724,300$ 724,300 7.24$ Storm Drainage 219,200$ 219,200 2.19$ Water Distribution 113,100$ 113,100 1.13$ Sewer Collection 52,000$ 52,000 0.52$ Solid Waste Collection 13,400$ 13,400 0.13$ General Government 23,400$ * 0.23$ Open Space & Habitat Acquisition 33,400$ * 0.33$ TOTAL 1,293,600$ 1,122,000$

* Fees not Eligible for SCIP Financing* * Assume a 100,000 sq. foot builidng

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Sample Assessment Lien (Commercial)

Total SCIP Eligible Fees 1,122,000$ Plus:

Debt Service Reserve Fund (7.5%) 96,750 Costs of Issuing Bonds (5.5%) 71,250

Total Assessment Bond Lien 1,290,000$

Amortization Term (Years) 30

Assumed Interest Rate 5.25%

Annual Assessment Due* 88,115$

* Preliminary and Subject to Change

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Must be a member of California Communities

Adopt resolution consenting to the use of the SCIP program (contained in SCIP Manual)

Submit SCIP Applications

When tax-exempt bonds are issued, the City executes one bond closing certificate, which confirms that:

- the Infrastructure financed through with bond proceeds, is public infrastructure

- Property being assessed has valid entitlements

- Funds will not be spent in violation of federal tax law

Local Agency Requirements

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Application ProcessApplication Form (very general)

Landowner Information Form (checklist)

- Description of Land use and acreage- List of assessor parcel numbers- Development plan- Status of entitlements- Purchase price and date of land- List of fees to be financed- CEQA certification- Option agreement (if applicable)- Development experience- Construction financing

$1500 Application Fee

Additional Deposit May be Required for Appraisal

Available Online at www.cacommunities.org

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Conducting the Proceedings

- SCIP Prepares the Engineer’s Report(s)

MuniFinancial/Willdan engaged by California Communities for the SCIP Program

Benefit Findings based on payment of fees for project

- Assessment Districts are established by SCIP on County-by-County basis

- Assessment Proceedings Conducted by California Communities

- Statewide Hearing and Landowner Vote conducted by California Communities

- California Communities Authorizes the Sale of Bonds

- City or County does not issue Bonds or levy assessments

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Community Facilities Districts (CFDs)

- CFD financings are for specific projects and districts

- May include one or more developers

- SCIP team will review local agency CFD guidelines (if available)

- CSCDA requires a minimum 4x value to lien ratio

- The maximum tax rate cannot exceed 2%

- Local Agency can establish more stringent guidelines

- Local Agency must identify funding priorities (infrastructure, fees, etc)

- CSCDA is authorized to proceed by a Resolution

SCIP Team can Manage Local Agency CFDs

CFDs will be Financed on a Stand Alone Basis

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Participating SCIP Agencies

City of Alameda City of Arroyo Grande City of Brentwood County of Butte City of Dublin Dublin San Ramon Services District City of East Palo Alto County of El Dorado City of Elk Grove  City of Galt  City of Healdsburg  City of Hercules  City of Lincoln 

City of Livermore  City of Millbrae  City of Morro Bay  City of Murrieta  City of Napa  Napa Sanitation District City of Oxnard  City of Petaluma  City of Richmond  County of Riverside  City of Rocklin  City of Roseville County of San Mateo  City of San Diego

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Series 2005 Bond Issue -- $10,645,000Issuer Project Purpose

Brentwood Sand Creek Business Center Road, Water, WastewaterBrentwood Assisted Living Road, Water, WastewaterBrentwood Medical Office Road, Water, WastewaterB & M Property Road, Water, Wastewater

Elk Grove Beltway Commerce II Roadway Laguna 5 Roadway

Rocklin Highway 65 Commerce TransportationBlue Oaks Town Center Transportation

Napa Napa Extended Stay Traffic, Water, SewerRoseville Parkside Estates Traffic, Park, Sewer, Water, DrainageSan Mateo Los Trancos Woods Sewer Construction

Series 2006 Bond Issue -- $19,015,000Issuer Project Purpose

Livermore Oaks Business Center Acquistion of Public ImprovementsBrentwood Parkside Villas Water, Sewer Road FeesRoseville Washington Lofts Water, Sewer Road Fees

Pleasant Grove Water, Sewer , ParkRocklin Lonetree Professional Roadway Elk Grove Hampton Inn Roadway

Highway 65 Commerce Roadway Sheldon Oaks Roadway

Millbrae Park Broadway Infrastructure FeesRoseville Parkside Estates Traffic, Park, Sewer, Water, DrainageEast Palo Alto Cummings Park Water, Sewer, Drainage, Park, Traffic

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Series 2003 Bond Issue -- $6,270,000

Series 2004 Bond Issue -- $3,500,000

Issuer Project Purpose

Lincoln Taylor Village TransportationBrentwood KB Homes Residential Road and Park FeesRichmond Metro Walk BART Specific Plan FeesMilbrae 88 Broadaway BART Specific Plan and Storm FeesOxnard Big T Freight Road, Wastewater, Storm

Issuer Project Purpose

Brentwood Sunset Industrial Road, Water, WastewaterEcowater System Road, Water, Wastewater

Napa Meritage Hotel Traffic, Water, SewerRestaurant Budo Traffic, Water, Sewer

Lincoln Sterling Point Commercial Traffic, Park, Water, DrainageGolden State Collission Traffic, Park, Water, Drainage

Roseville Silver Creek Traffic, Park, Sewer, Water, DrainageCarpet One Water

Elk Grove Simas Gateway Roadway Beltway Commerce Roadway

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SCIP Conclusion

Well Suited for Commercial, Industrial and Residential Projects

Alternative to Fee Deferral Programs

Simple Application and Administration Process

Long Term Fixed Rate Financing at Competitive Tax Exempt Rates

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SCIP Contact Information

California Statewide Communities Development Authority

James F. Hamill

2033 N. Main Street, Suite 700

Walnut Creek, California 94596

(925) 933-9229 ext. 216

(925) 933-8457 fax

jhamill@cacommunities.org

California State Association of Counties

Norma Lammers

1100 K Street, Suite 101

Sacramento, CA 95814

(916) 327-7500 ext. 554

(916) 441-5507 fax

nlammers@counties.org

League of California Cities

Daniel B. Harrison

1400 K Street

Sacramento, CA 95814

(916) 658-8267

(916) 658-8240 fax

harrisod@cacities.org

Orrick, Herrington & Sutcliffe LLP

John H. Knox

405 Howard St.

San Francisco, California 94105-2669

(415) 773-5626 voice

(415) 773-5759 fax

jknox@orrick.com

Bond Logistix LLC

Daniel Chang

777 S. Figueroa St., Suite 3200

Los Angeles, Ca 90017

(213) 612-2205 voice

(213) 612-2499 fax

dchang@bondlogistix.xom

RBC Capital Markets

Robert L. Williams, Jr.

345 California Street, Suite 2800

San Francisco, CA 94104

(415) 445-8674 voice

(415) 445-8679 fax

bob.williams@rbcdain.com

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Credit Entitlement Requirements

High Risk

Raw Acreage

Does not Qualify

$30,000(Land Costs)

General Plan

and ZonedEntitlements

SCIPProgram

Amount Invested

Lien-to-Value Coverage

2:1

Land Development

Stage

Moderate Risk

Entitled Acreage

FinalSubdivision Map

Impact FeePrefunding Program(Typical Bond Project)

$45,000 $60,000(Land and Offsites) (Onsites)

Tentative Map/Development

Agreement

3:1 4:1

Finished Lot Building Complete

Building Certificate ofPermit Occupancy

$90,000 $275,000(Building Permit) (Finished Home)

18:1 (Investment Grade)

Safe

Impact Fee Reimbursement Program

6:1

Approved