ORDINANCE NO. 710

ORDINANCE OF THE BOARD OF SUPERVISORS OF THE COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, AUTHORIZING THE LEVY

OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT

NO. 91-1 (MURRIETA SPRINGS MALL)

WHEREAS, on March 26, 1991, the Board of Supervisors of the County of Riverside, State of California (the "Board"), adopted Resolution No. 91-144 (the "Resolution of Intention to Establish the District") stating its intention to form Community Facilities District No. 91-1 (Murrieta Springs Mall) of the County of Riverside, State of California (the "District") pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"); and

WHEREAS, on March 26, 1991, the Board also adopted Resolution No. 91-145 (the "Resolution of Intention to Incur Bonded Indebtedness") stating its intention to incur bonded indebtedness in an amount not to exceed $25,000,000 within the District for the purpose of financing the purchase, construction, expansion, improvement and rehabilitation of certain park, recreation and open-space facilities, roads and roadway facilities, parkway facilities, water and wastewater facilities, flood control and drainage facilities, regional signal lights, regional fire facilities, regional school facilities and regional park and ride facilities (the "Facilities"), and incidental expenses related thereto as authorized by the Act (the "Incidental Expenses"), including, but not limited to, (1) the cost of planning and designing the Facilities and the cost of environmental evaluations thereof, (2) the costs associated with the creation of the District, issuance of the bonds, determination of the amount of and collection of taxes, the payment of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District, and (3) any other expenses incidental to the construction, completion and inspection of the Facilities, all as more fully described in the Resolution of Intention to Establish the District; and

WHEREAS, notice was published as required by law relative to the intention of the Board to form the proposed District and to incur bonded indebtedness in an amount not to exceed $25,000,000 within the District; and

WHEREAS, on April 30, 1991, the Board convened a noticed public hearing as required by law, (1) to determine whether it should proceed with the formation of the District and authorize the rate and method of apportionment of a special tax to be levied within the District for the purpose of paying for the Facilities and the Incidental Expenses relating thereto and the costs associated with the bonded indebtedness proposed to be issued to finance the Facilities, including the principal of and interest on the proposed bonded indebtedness, and (2) on the proposed issuance of the bonded indebtedness; and

WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District, the levy of the special tax, the proposed issuance of the bonded indebtedness, and all other matters set forth in the Resolution of Intention to Establish the District and the Resolution of Intention to Incur Bonded Indebtedness, were heard and considered and a full and fair hearing was held thereon; and

WHEREAS, the Board, subsequent to said hearing, adopted Resolution No. 91-216 (the "Resolution of Formation") which established the District, determined the validity of prior proceedings relative to the formation of the District and the incurring of bonded indebtedness, authorized the levy of a special tax within the District and called an election for May 28, 1991, on the propositions of levying a special tax and establishing an appropriations limit within the District; and

WHEREAS, the Board, subsequent to said hearing, adopted Resolution No. 91-217 (the "Resolution to Incur Bonded Indebtedness") which determined the necessity of incurring bonded indebtedness in an amount not to exceed $25,000,000 and called an election within the District for May 28, 1991, on the proposition of incurring bonded indebtedness; and

WHEREAS, on May 28, 1991, in accordance with the Resolution of Formation and the Resolution to Incur Bonded Indebtedness, a consolidated election was held within the District in which the qualified electors approved by more than a two-thirds vote the propositions of incurring bonded indebtedness, levying a special tax and establishing an appropriations limit within the District;

NOW, THEREFORE, the Board of Supervisors of the County of Riverside ORDAINS as follows:

Section 1. The above recitals are all true and correct and this Board so finds and determines.

Section 2. By the passage of this Ordinance, the Board authorizes the levy of a special tax pursuant to the rate and method of apportionment set forth in Exhibit "A" attached hereto and incorporated by reference herein, being the rate and method of apportionment specified in the Resolution of Intention to Establish the District.

Section 3. The Board is hereby further authorized each year by resolution adopted within the time period, if any, provided in the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed that set forth in Exhibit "A" hereto, but the special tax may be levied at a lower rate. The Clerk of the Board is hereby authorized and directed to file a certified copy of the resolution and a list of all parcels subject to the special tax levy with the tax to be levied on each parcel with the County Auditor within the time period, if any, provided in the Act.

Section 4. Properties or entities of the state, federal or other local governments shall, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act, be exempt from the special tax. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the Resolution of Formation (and Exhibit "A" hereto), or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special tax shall be used as provided for in the Act and the Resolution of Formation. The special tax shall be levied only so long as needed for its purpose as described in the Resolution of Formation and the Resolution to Incur Bonded Indebtedness.

Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes, as such procedure may be modified by law from time to time. Nothing in this Ordinance shall be construed as limiting the District to the procedures set forth in the rate and method of apportionment set forth in Exhibit "A" attached hereto or as preventing the District from issuing supplemental tax bills, correcting errors or taking other actions in order to collect the special tax in accordance with applicable law, in a manner and at times in addition to that provided in the rate and method of apportionment set forth in Exhibit "A" attached hereto.

Section 7. The Chairman of the Board shall sign this Ordinance and the Clerk of the Board shall attest to the Chairman's signature and then cause the same to be published within fifteen (15) days after its passage at least once in the Press-Enterprise, a newspaper of general circulation published and circulated in the County of Riverside.

Section 8. This Ordinance relating to the levy of the special tax shall take effect immediately upon its final passage in accordance with the provisions of Section 251238 of the California Government Code, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act.

ADOPTED, SIGNED AND APPROVED this 11th day of June, 1991.

Adopted: 6-11-1991 (Eff.: 6-11-91)

(FOLLOWING IS AEXHIBIT A@)

Ordinance No. 710

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

FOR COMMUNITY FACILITIES DISTRICT NO. 91-1 (MURRIETA SPRINGS MALL)

OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

A special tax (the Aspecial tax@) shall be applicable to each Parcel (defined below) located within the boundaries of Community Facilities District No. 91-1 (Murrieta Springs Mall) of the County of Riverside (herein the ADistrict@). The amount of Special Tax to be collected in any Fiscal Year (defined below) from a Parcel shall be determined by the Board of Supervisors for the County of Riverside, acting in its capacity as the legislative body of the District (the ABoard@), by applying the appropriate tax rate as set for the in Section B and C below for Developed Property or Undeveloped Property, as defined below. All of the property in the District, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent and in the matter herein provided.

A. DEFINITIONS:

The terms hereinafter set forth have the following meanings:

AAlternate Maximum Special Tax@ for Development Property means that amount of tax computed by multiplying the Net Taxable Square Footage of a Parcel by the rate per square foot as stated in Section C (1) below.

AAssessor=s Parcel Map@ means an official map of the Assessor of the County of Riverside designating parcels by Assessor=s Parcel Number.

AAssigned Special Tax Rate@ means the rate of Special Tax per square foot of Gross Floor Area as specified in Table 1 below.

ADeveloped Property@ means all Parcels in the District for which a certificate of occupancy has been issued(or for which a final building inspection has been performed if no certificate of occupancy is required)and certification of such has been provided to the District as of June 15 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied.

AFiscal Year@ means the period starting on July 1 of any year and ending the following June 30.

AGross Floor Area@ means the square footages for the identified primary and secondary building uses as shown on the current applicable building permit(s)

AMaximum Special Tax@ means the maximum Special Tax, determined in accordance with Section C below, that can be levied by the Board in any Fiscal Year on a Parcel of Developed Property or Undeveloped Property.

ANet Taxable Square Foot@ means a square foot of Developed Property or Undeveloped Property as calculated from the current applicable Assessor=s Parcel Map, exclusive of property exempted by law or the provisions of Section E below from the Special Tax

AParcel@ means a lot or parcel shown on the current applicable Assessor=s Parcel Map(s) with an assigned Assessor=s Parcel Number.

ASpecial Tax Requirement@ means that amount required in any Fiscal year to pay (1) debt service on all bonds or other indebtedness of the District sold or incurred for the benefit of the District; (2) any amounts required, to the extent permitted in the Maximum Special Tax, to replenish any reserve fund (s) established in association with bonds issued and sold for the benefit of the District; (3) costs incurred by the District in the annual levy and collection of the Special Tax; and, (4) the administration costs of the Districts.

ASpecial Tax(es)@ means the Special Tax to be levied in each Fiscal Year on each Parcel of Developed Property and Undevelopment property to fund the Special Tax Requirement.

AUndeveloped Property@ means all Parcels not classified as Development Property.

B. ASSIGNMENT OF LAND USE CLASS

On or about July 1 of each year, all Parcels within the District shall be categorized either as Developed Property or as Undeveloped property and shall be subject to the Special Tax in accordance with the rate and method of apportionment set forth in Section C and D below. The District shall make said categorization based on the certification to be supplied to it by the developer or owner of a Parcel on or before June 15 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied.

Developed Property shall be assigned to one of the five classes shown on Table 1; assignment to a class shall be based upon the Federal Classification Code (the AFCC@) and the primary building use description, as shown on the current applicable building permit(s) for each Parcel. Furthermore, Developed Property with an FCC of 318 or 327 and on which there is located a single tenant building with Gross Floor Area greater than 75,000 square feet shall be assigned to Class 1 (AMajor Retail Property@). All other Developed Property that cannot be assigned to Classes 1 through 4 shall be assigned to Class 5 and identified as AOther Property@.

C. MAXIMUM SPECIAL TAX

1. Developed Property

The Maximum Special Tax for a Parcel categorized as Developed Property and assigned to one of the five Classes shown on Table 1 shall be the amount derived by multiplying the Gross Floor Area of the Building (s) on said Parcel by the Assigned Special Tax Rate for that Class shown on Table 1.

The Assigned Special Tax Rates Specified in Table 1 below are the rates o be applied for Fiscal Year 1991-92. On each July 1, commencing July 1, 1992, the Assigned Special Tax Rates for Class 1 through 5 shall be increased by an amount equal to two percent (2.00%).

In the event FCC-437 (Alteration or tenant improvement) appears as the primary building use description on the current applicable building permit(s) for any Parcel, the Parcel shall be assigned to that Class to which it had been assigned prior to the issuance of said Building permit(s) and will continue to be assigned to said class until the developer or owner provides satisfactory documentation to the District that the Parcel should be assigned to an alternate class pursuant to Section B above.

Alternate Maximum Special Tax:

The Alternate Maximum Special Tax Rate for Fiscal Year 1991-92 shall be $1.098 per Net Taxable Square Footage of a Parcel. On each July 1, commencing July 1, 1992 the Alternate Maximum Special Tax Rate shall be increased by an amount equal to two percent (2.00%).

TABLE 1

MAXIMUM SPECIAL TAXES ON DEVELOPED PROPERTY

ASSIGNED SPECIAL TAX RATE

CLASS DESIGNATION FISCAL YEAR 1991-92

1 Major Retail Property - FCC=318/327 - Primary $1.284 per sq. ft. of Gross Floor Area

Bldg. Use description = retail store, retail store

(shell), restaurant, market, storage, agricultural,

auditorium, bowling alley or move theater, single

tenant building Gross Floor Area - 75,000 sq. ft.

2 Minor Retail/Restaurant Property - FCC=318/317 $1.710 per sq. ft. of Gross Floor Area

- Primary Bldg. Use Description = retail store,

retail store (shell), restaurant, market,

storage, agricultural auditorium, bowling alley

or move theater

3 Office Property - FCC=324/326 - Primary Bldg. $0.655 per sq. ft. of Gross Floor Area

Use Description = bank, medical office, business

office, business office (shell), library, school, and

storage / commercial.

4 Hotel Property - FCC=213 - Primary Bldg. Use $0.552 per sq. ft. of Gross Floor Area

Description = hotel, motel, tourist cabin or

apartment hotel

5 Other Property $1.710 per sq. ft. of Gross Floor Area

2. Undeveloped Property

The Maximum Special Tax Rate in Fiscal Year 1191-92 for Undeveloped Property shall be $1.098 per Net Taxable Square Footage of a Parcel. On each July 1, commencing July 1, 1992 the Maximum Special Tax rate for Undeveloped Property shall be Increased by an amount equal to two percent (2.00%).

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO DEVELOPED AND UNDEVELOPED

Starting in Fiscal Year 1991-92 and for each subsequent Fiscal Year, the Board shall determine the Special Tax Requirement. The Board shall levy the Special Tax as follows until the amount of the levy equals the amount of the Special Tax Requirement.

First: The Special Tax shall be levied proportionately on each parcel of Developed Property, exclusive of property exempt from Special Taxes pursuant to Section E, below up to 100 percent of the Assigned Special Tax Rate for Developed Property;

Second: If additional monies are needed after the first step has been completed, the Special Tax shall be levied proportionately on each parcel of Undeveloped Property, exclusive of property exempt from Special Taxes pursuant to Section E, below, up to 100 percent of the Maximum Special Tax Rate for Undeveloped Property;

Third: If additional monies are needed after the first two steps have been completed, then the Special Tax may be levied at the Alternate Maximum Special Tax Rate for all Parcels for which the Maximum Special Tax Rate would yield less than the Alternate Maximum Special Tax Rate for that Parcel.

E. EXEMPTIONS

The Board shall not levy a Special Tax on:

- Properties or entities of the state, federal or other local governments, except as otherwise provided in Section 53317.3 or 53317.5 of the California Government Code.

- Property designated by the applicable tentative or final parcel map for dedication or ownership for public use as rights-of way, roadways, drainage, park and ride facilities or parks

Publicly owned land conveys or irrevocably offered for dedication after formation of the District. And not otherwise exempt pursuant to this Section E, shall be subject to a Special Tax pursuant to Section 53317.3 or 53317.5 of the Government Code. Such Parcels may be exempted, at the direction of the Board, if the Special Tax to be derived therefrom in any Fiscal Year is not needed to meet the Special Tax Requirement under Section D above.

F. REVIEW/APPEAL BOARD

The Board shall establish as a part of the proceedings and administration of the District a Special three-member Review/Appeals Board. The Review/Appeals Board shall interpret and make determinations relative to the administration of the Special Tax herein specified.

G. MANNER OF COLLECTION

The Special Taxes of the District shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The Special Taxes shall be subject to the same penalties as are provided for ad valorem taxes and shall be enforced in the manner determined appropriate by the Board under the laws governing the District.