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HomeMy WebLinkAboutCity of Huntington Beach Community Facilities District - CFD (7) S 6as Council/Agency Meeting Held: 91/7-00 Deferred/Continued to: 2"L.' I KApproved ❑ Conditionally Approved ❑ Denied ity Clerk's Signat e Council Meeting Date: April 17, 2000 Department ID Number: ED 00-08 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL/ ► a--i REDEVELOPMENT AGENCY MEMBERS ' CD SUBMITTED BY: RAY SILVER, City Administrator/Executive Director ' PREPARED BY: DAVID C. BIGGS, Economic Development Director v> SUBJECT: Public Hearing to Approve the Formation of the City of Huntington Beach Q?mmunitv Facilities District No. 2000-1 (Grand Coast Resort No. — 34 ?=a- 35 ZAoo - b — "1 moo - Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The Redevelopment Agency of the City of Huntington Beach has entered into a Disposition and Development Agreement for the development of the Hilton Grand Coast Resort. A component of the financing for the project requires the Redevelopment Agency to assist in paying the cost of.. installing public improvements surrounding the project. One method of accomplishing this at the lowest cost possible to the City/Agency is to form a Community Facilities District (CFD) and to issue bonds supported by a special property tax levy imposed on the sole property owner of the property on which the resort is located. 'a Funding Source: Funding for this CFD will come from bonds to be issued later this year when all appropriate actions have been taken by the City Council and the Redevelopment Agency. Recommended Action: The formation of the Community Facilities District requires various sequential steps to be taken by the City Council and/or the Redevelopment Agency. The recommended actions are the following: CITY COUNCIL ACTION: 1. Open the public hearing, take public testimony, and close the public hearing on the formation of the Community Facilities District. 2. Approve the Community Facilities District Report for City of Huntington Beach, Community Facilities District No. 2000-1 (Grand Coast Resort). J s i I I I I I City Clerk of the City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 THIS ENVELOPE CONTAINS AN OFFI- CIAL BALLOT TO BE OPENED ONLY BY THE CITY CLERK OF THE CITY OF HUNTING TON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: April 17, 2000 DEPARTMENT ID NUMBER: ED 00-08 CITY COUNCIL/REDEVELOPMENT AGENCY: 3. Adopt a Joint City/Agency Resolution No. 1000-341 with Respect to Findings that the City of Huntington Beach and the Redevelopment Agency of the City of Huntington Beach are Landowners Subject to the Levy and Collection of Special Taxes within the District. CITY COUNCIL: 4. Adopt Resolution No. 1060 -3S Establishing the Community Facilities District No. 2000-1 (Grand Coast Resort) of the City of Huntington Beach and Establishing Boundaries Thereof. 5. Request the City Clerk to conduct a special election on the formation of the Community Facilities District. 6. Adopt Resolution No. 2000- 3 b Determining the necessity for the City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) to incur a bonded indebtedness in an aggregate amount not to exceed $16 million for providing public facilities within and for the district and calling for a Special Election. 7. Accept the letter from the City Clerk agreeing to act as the election official to conduct the Special Election. REDEVELOPMENT AGENCY: 8. Authorize the Chairman of the Redevelopment Agency to Waive on behalf of the Redevelopment Agency Certain Election Procedures. CITY COUNCIL: 9. Adopt Resolution No. 2000-- 37 calling for a Special Election and Submitting to the Voters of Community Facilities District No. 2000-1 (Grand Coast Resort) a Proposition with Respect to the Annual Levy of Special Taxes Within the Community Facilities District to Pay the Principal of Interest on Bonds Thereof, and a Proposition with Respect of the Establishment of an Appropriations .Limit for the Community Facilities District. 10. Statement from the City Clerk of the City of Huntington Beach as to the canvas of ballots voted in and the results of the Special Election. 11. Adopt Resolution No. 2000-A of the City Council of the City of Huntington Beach Declaring the Results of the Special Election for Community Facilities District No. 2000-1 (Grand Coast Resort). Alternative Action(s): The City Council has the option of not forming the Community Facilities District. This will cost the City and the Redevelopment Agency significant dollar expense in interest costs owed to the Developer of the Grand Coast Resort. The interest rate and costs associated with the formation of the CFD will be significantly lower than the RCACFD417200 -2- 04/06/00 10:14 AM ' REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: April 17, 2000 DEPARTMENT ID NUMBER: ED 00-08 interest the Agency will have to pay the Developer for advancing funds to the Agency at a higher interest rate and a substantial cost to the Agency and the City. Prior Action: On February 7, 2000, the City Council took the initial steps towards the formation of the CFD by scheduling the CFD public hearing. The public hearing has been continued twice. The first public hearing was scheduled for February 22, 2000, and then it was continued to March 20, 2000. On March 20th, 2000, the public hearing was again continued to April 17, 2000. Continuances were necessary due to the complexity of the proposed CFD. Analysis: Since entering into a Disposition and Development Agreement with the Mayer Corporation, the Redevelopment Agency staff has been negotiating with the developer for different ways in which to reduce the public cost of the project. The Agency/City have been successful in securing a Section 108 Loan of $6 million and a BEDI Grant of $2 million. In addition, staff has identified the formation of a Community Facilities District as a method to repay certain costs advanced by the Developer. The actions contemplated to be taken by the City Council in the formation of the Community Facilities District will achieve this aim. Additional information regarding the steps and actions for forming the CFD is set forth in memorandum from Bond Counsel (Attachment No. 1). Environmental Status: EIR 82-2 was prepared in 1982 and in 1988 Addendum 88-2 was prepared for this project. Attachment(s) Next Page: RCACFD417200 -3- 04/06/00 10:14 AM 1 REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: April 17, 2000 DEPARTMENT ID NUMBER: ED 00-08 Attachment(s): City Clerk's Page Number No. Description 1. Memorandum from Best, Best and Krieger. 2. Community Facilities District Report. Zovo - 39 3. Resolution No. Joint Resolution of the City Council and the Redevelopment Agency with ' Respect to Findings that the Redevelopment Agency is a landowner subject to the levy and collection of Special Taxes within the Community Facilities District. 4. Resolution No. 2°aO -3S of the City Council Establishing the Communities Facility District and Boundaries thereof. 5. Resolution No.lzao-35o of the City Council determining the necessity _ for the City of Huntington Beach Community Facilities District No. 2000-1 to incur a bonded indebtedness in an aggregate amount of$16 million. 6. Letter form the City Clerk agreeing to act as the election official to conduct the special election of the CFD. 7. Authorization to Waive Certain Election Procedures by the Redevelopment Agency. 8. Resolution No.�--000 —31 of the City Council Calling for a Special Election of the CFD to incur a bonded indebtedness and to levy a special tax to pay the principal of and interest on the bonds. 9. Statement From the City Clerk to the City Council as to the Results o the Special Election. 10. Resolution No.ZaOo-3a of the City Council Declaring the Results of the Special Election. RCA Author: Gus Duran X1529 RCACFD417200 -4- 4/5/00 5:10 PM OFFICIAL BALLOT SPECIAL ELECTION FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA APRIL-17, 2000 To vote, mark a cross(+)in the voting square after the word."YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Huntington Beach and obtain another. PROPOSITION A: Shall a bonded indebtedness in an aggregate principal amount not to exceed$16,000,000 be incurred by and for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum, oIr such other rate as may be the maximum interest rate permitted by law, for the purpose of financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of bonds, the formation of the Community Facilities District, and the design, construction, and acquisition of the public facilities, including all costs and esti- mated costs of construction ofthe public facili- ties, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the add'ancement of funds for The City of Huntington Beach Redevelopment Agency 16 votes RVPUBUCsc\550357 Pagel of 3 I� 4 expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal,fiscal and financial consultant fees,bond and -other reserve funds, bond discount, interest on any bonds of the Community Facil- ities District estimated to be 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, costs of obtaining credit ratings, [Proposition A] bond insurance premiums, fees for letters of YES credit or other credit enhancement costs, and printing costs? NO PROPOSITION B: Shall special taxes be levied annually on taxable property within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, to pay the principal of and interest on the bonds of the community facilities district issued and sold to finance the construction, .acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit "B" to Resolution No.-2W-35adopted by the City The City of Huntington Beach Redevelopment Agency 16 votes RVPUBVCsc\550357 Page 2-of 3 Council of the City of Huntington Beach on [Proposition aI April 17, 2000? YES NO PROPOSITION C: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for City of [Proposition c1 Huntington Beach Community Facilities YES District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, in the NO amount of$1,750,000? The City of Huntington Beach Redevelopment Agency 16 votes RVPLBUCSC\550357. Page 3 of 3 CERTIFICATION I certify that I am an authorized representative of the City of Huntington Beach Redevelopment Agency,a redevelopment agency under the laws of the State of California,the owner of all of the property within the boundaries of City of Huntington Beach Community Facilities District No. 2000-.1.(Grand Coast Resort),County.of Orange, State of California,consisting of 15.103 acres, and that as such authorized representative, I am authorized to and have voted the Official Ballot to which this certification is attached: I further certify that in voting said ballot,it was my intent,as well as the intent of the City of Huntington Beach Redevelopment Agency,to vote all votes to which the City of Huntington Beach Redevelopment Agency, is entitled on Propositions A, B and C set forth in said ballot as marked in the voting square opposite each such proposition. I further certify that based on one vote-per-acre or portion -of an acre .of land-which the City of Huntington Beach Redevelopment Agency, owns within said community facilities district, said owner is entitled to the number of votes shown on said ballot. I-certify that this certification was executed on April 17, 2000,at Huntington Beach, California. The City of Huntington Beach Redevelopment Agency, a redevelopment agency under the laws of the State of California Ck WON BY: TITLE`. Chairman RVPUBUCsc\550357 Pagel of 3 Community Facilities District Report for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) February 8, 2000 Table of Contents Introduction Page 1 Part I Description of District,Boundary Map Page 3 Part 11 Description of Facilities Page 5 Part III Cost Estimate Page 7 Part IV Property Owners/Lessees Page 8 CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) COMMUNITY FACILITIES DISTRICT REPORT Introduction The City of Huntington Beach upon its own initiative, upon land making up the site known as the Grand Coast Resort, has resolved to form a Community Facilities District (the "District") for the purpose of financing certain public and private improvements needed to meet increased demand upon the City of Huntington Beach as a result of the resort/commercial development. This proposed district is being formed pursuant to a disposition and development agreement with Mayer Financial Ltd. Under the agreement the developer will lease the.land from the Redevelopment Agency of the City for the purpose of constructing a resort hotel. The proposed District is located at the northwest intersection of Pacific Coast Highway and Beach Boulevard as depicted on a reduced copy of the Proposed Boundary Map, included herein. The City of Huntington Beach has ordered the preparation of a report describing the proposed facilities to be financed by the District. The proceedings will be conducted in accordance with the provisions of Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City of Huntington Beach and the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, of Title 5 of the Government Code of the State of California(together, the "Law"). The Report is to be prepared by, or under the direction of, the Director of Economic Development of the City of Huntington Beach and other such officers responsible for providing the facilities to be financed by the proposed district. The report is to prepared in accordance with the Law and shall include: a. A description of the capital facilities and/or services being financed, by type, which will be required to adequately meet the needs of the District. b. An estimate of the fair and reasonable cost of the construction and/or acquisition of the proposed facilities including the cost of acquisition of lands, right-of-way and easements, and any physical facilities required in conjunction therewith, and incidental expenses in connection with said construction/acquisition, including the costs of proposed bond financing and all other related costs as provided in the Law. 1 I, Michael D. Swan, P.E., an authorized officer of Michael Swan Consulting, directed to prepare the report for said Community Facilities District, hereby submit the following report consisting of four(4)parts. Part I . A description of proposed District and map of proposed boundaries. Part II A description of the proposed facilities and/or services. Part III A cost estimate of the proposed facilities and/or services. Part IV A listing of the property owner and proposed lessee in the District. Q�OQvOFESS/pN4, F MICHAEL c� SWAN rn chae D. Sw , P. # o. CIVIL sTgrF OF CAOFO��\P 2 PART I Description of District-Boundary Map The proposed District,. City.. of Huntington. Beach Community Facilities District No. 2000-1 _(Grand Coast Resort), is located at--the northwest intersection of Pacific Coast Highway and.Beach.Boulevard and bounded.by these two streets as well as Pacific View Avenue and Twin Dolphin Drive, in the City of Huntington Beach, County of Orange, State of California, more particularly described as all land within the boundaries of: Lot 1 of Tract No. 15535, Recorded September 14, 1999 in Map Book 790, pages 44-50, Records of Orange County, California, comprising 15.103 acres. This parcel is currently designated by portions of Orange County Assessor's Parcel Numbers: 024-250-73 & 024-250-76* *A,new parcel number or numbers will.be assigned by the County Assessor's Office in July 2000 for the 2000/2001 tax year due to the recordation of Tract No. 15535 in September of 1999. 3 �.�,�. .�';-,_:.::.• 1N'1[R�SMFIJT r10. 20000�3gZ�q 79 PROPOSED BOUNDARIES OF THE CITY OF HUAMNOTON BEACH COMMUNITY FACMIES DISTRICT NO. 2000-1(GRAND COAST RESORT) COUNTY OF ORANGE, STATE OF CALIFORNIA I j i I IQewray¢mveea9n ay:c,Yy &.' AAA✓7/An61u J6r14r.// IH7N g DOLPHIN DRNf FILED THISL aF wA�Ps OF assEss+~¢NiTu THE mcavYua�TY v a ms DISTRICTS AT PAGE W THE OFFICE OF ME COUNTY RECORDER W THE COUNTY OF 1 N J756b6'£ 33700' ORANGE STATE OF CALWORNIA.Pii J m qy/,/AP07A~r to XMW WJYL? I R Py OCprJt ��•f0•E r>A�y L 6Y6110,UEG,couNTr dp&m of COUNTY or oRANLr 1 I NJ9'28'01'E(R) Z 1 HEREBY CERIIFY.MAT ME-NIMON YAP 9TOWOVG PROPOSED BOUNDARIES OF u THE CITY OF HUNTINGTON BEACH COMMUNITY rACMJITES DISTRICT NO 2000-1, v I COUNTY Or ORANGE,STATE 0'F CALIFORNIA.WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF FI�NnNCTON BEACH AT A REGULAR MEETING — iHERE� HELD ON lTJE[L DAY Or jkmwf,A,y6,BY ITS RESOLUTION NO E 147837'S 1_E LRI •lase-C FILED W THE OFFICE OF THE CITY CLEW OF THE CITY OF HUNTINGTON BENT THIS,,/II& DAY OF\Tmet,S-0 41 9' !i 6NSsi.+ 80• _ NJTIT!5'E(?) THE CITY CLERK OF M QTY OF NUNIWCTON BEACH LEGAL 1100, LRJ. LOT 1 OF TRACT Na 15=RECORDED SEPTEIIBER It, 1999 W YAP BOOK M.PAGES"-50,RECORDS OF ORANGE COUNTY,CALIFORNIA 3d 5p• u ' i _ N370556'E(R1 � 2 I Q YICHAAa mm`" P LS NO.6034 EV 6-30-01 a ' N n Lo-r i TRACT 15535 T I g 15,103 ACR56 1 NJT033CE(R) No 603/ Ir yAp hP.6-]f}m OF C ry I 13493 OF AAIN03 BEARINGS HEREON ARE BASED ON THE BEARINGS BETWMV O.C.S..o HORIZONTAL CONTROL STAnON OPS SOO AND STATION GPS 5009 u` BEM NORM B9'25'47•NEST PER RECORDS ON FILE W THE OFFICE OF THE ORANGE COUNTY SURVEYOR. 4u \ CURVE DATA MUNBER 204 VVIUS LEWIN i I Cl 06A471' 105500' 10261' I C2 05 2 114500' 11J94, pgv cJ OJ50 I I IosS.aD' 7064' C4 IJ4 6000' 14.49' L I N E D A TA ' o a$ MAIM DIREC/NAM QSMAICE LI N D?59.14 W 4138' L4 N 56'0416.�W 00, � LS N Je'J9'Jd W JQ14' 16 N Sra7/Y E 10.85' I / E L7 N 65'44'14 E I 1730' 18 N 52DI'I5"W 16f.45' L9 N Moir E 26.20' LIO N Jdl4.1 W J1.BJ' J LI) N 5704'1 IT 15AIr j 100 50 100 200 300 I 1'=100• AL\PROECT5\252\02CkCOST_91R-AOWNTMW 4 PART II Description of Facilities The Law provides for alternate financing of certain capital facilities and services in developing areas and those areas undergoing rehabilitation. Since the facilities are required to meet additional demands on the City as a result of current and future development occurring within the proposed District, and` since the useful life of the proposed facilities exceeds five years, the financing of the proposed facilities meets the conditions of the Law. The proposed facilities include: 1. Street improvements which are expected to be as follows: Road construction including widening/improvement of Beach Boulevard and Pacific Coast Highway adjacent to the site as well as Sunrise Drive widening and construction of Pacific View Avenue between Twin Dolphin Drive and Beach Boulevard and Twin Dolphin Drive between Pacific Coast Highway and Pacific View Avenue including improvements at each of these intersections. 2. Acquisition of rights-of-way,which will include the purchase of right-of-way for the above roadways. 3. Purchase and/or condemnation and demolition for street rights-of-way which include the demolition of mobile homes, clubhouse and Huntington Beach Inn within road rights-of-way. 4. Public park and recreation facilities including beach access facilities which will consist of construction of a Pedestrian Bridge overcrossing Pacific Coast Highway between the development project and the City Beach. 5. Contribution to the construction of a City Beach Maintenance Yard. 6. Wetlands Remediation/Relocation. 7. Acquisition of pro-rata capacity in regional water and sewer facilities including water storage reservoirs and sewage treatment facilities. 8. Fire fighting facilities including structures and capital equipment. 9. Traffic impact fees. The roadway improvements include grading, pavement sections, sidewalks, driveways, curb and gutter, median curbs, handicap ramps, road signage and striping, and landscaping medians and parkways. All traffic detour and construction staging necessary to accomplish the above roadway construction shall also be eligible improvements. Utilities within the above roadways are also included such as domestic water, reclaimed water and sewer lines, storm drain lines and catch basins, as well as electrical improvements including street lighting. 5 The foregoing shall include the acquisition of all rights-of-way, easements, franchises, licenses and permits, and the construction of all auxiliary work and the payment of all incidental expenses necessary and/or convenient to the accomplishment of the foregoing, including all permitting, plan checking and inspection fees, engineering, surveying, geotechnical, architectural and construction fees, and for the conduct of community facilities district proceedings and the issuance of bonds, as may be approved by the City, for the financing of all or a portion of the foregoing. All work and acquisitions shall be as approved in appropriate proceedings of the City. 6 PART III Cost Estimate The estimate of the fair and reasonable cost of construction of the proposed.facilities, including cost of acquisition:of lands,-rights-of-way.and easements, and any physical facilities required in conjunction therewith, and incidental expenses in connection with said acquisition and construction, including the_cost of proposed bond financing and all other related costs as provided in the Law, are deemed to be not to exceed $16,000,000. A breakdown of the cost estimate is shown below: DESIGN,ACQUISITION & CONSTRUCTION COSTS $13,500,000 COST OF ISSUANCE &BOND COSTS 2,500,000 TOTAL MAXIMUM BOND PROCEEDS TO DISTRICT $16,000,000 Design, acquisition and construction costs relate to those facilities described in Part II, herein. Cost of Issuance includes the fees and expenses of Bond Counsel, Special Tax Consultant, Appraiser, Printing, Trustee, Trustee Counsel, City Administration and Legal Services and Developer Administration and Legal Services. Bond Costs include Underwriter's Discount, Bond.Reserve Fund and Funded Interest. 7 PART IV Property Owners/Lessees The property included within the boundaries of the District is owned by the Redevelopment Agency of the City of Huntington.Beach,_lessor,•and proposed.to be leased by Mayer Financial Ltd., lessee. 8 , < _.. OpJ--Tres• . - / — ke eksf-r EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT Recording Requested by CODE SECTION 6103 and When Recorded Return to: - City Clerk Recorded in Official Records, County of Orange City of Huntington Beach Gary Granville, Clerk-Recorder 2000 Main Street I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII lilll IIIII NO FEE Huntington Beach, CA 92648 20000210584 03:56pm 04/24100 114 16 N33 13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NOTICE OF SPECIAL TAX LIEN Pursuant to the requirements of Section 3114.5 of the Streets and Highways Code Section 53328.3 of the Government Code and Section 3.56.300 of the Municipal Code of the City of Huntington Beach,the undersigned City Clerk ofthe City of Huntington Beach,County of Orange, p State of California, hereby gives notice that a lien to secure payment of special taxes is hereby imposed by the City Council of the City ofHuntington Beach,County of Orange, State of California. The special taxes secured by this lien are authorized to be levied for the purpose of paying principal C� of and interest on bonds, the proceeds of which are being used to finance the public facilities described in Exhibit "A" attached hereto. The special taxes are authorized to be levied within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California(the"Community Facilities District"),the boundaries of which are described in Exhibit"B" attached hereto,which has now been officially formed and the lien of the special taxes is a continuing lien which shall secure each annual levy of the special taxes and shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special taxes cease to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. RVPUB\KSC\562390 The rates, method of apportionment, and manner of collection of the authorized special taxes are as set forth in Exhibit "C" attached hereto. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied and the lien of the special taxes canceled are also set forth in Exhibit "C" hereto. Notice is further given that upon the recording of this notice in the office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the Community Facilities District in accordance with Section 3115.5 of the Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within the Community Facilities District and not exempt from the special taxes are set forth in Exhibit "D" attached hereto. Reference is made to the boundary map (or the amended boundary map) of the Community Facilities District recorded on September 14, 1999, in Book 78 of Maps of Assessment and Community Facilities Districts, at Page 49, and as Instrument No. 20000038289, in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the Community Facilities District. RVPUB\KSC\562390 -2- For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Office of the City Manager of the City of Huntington Beach, 2000 Main Street, Huntington Beach, California, telephone number(714)-536-5582. Dated: Aprilo?/5, 2000. C City Clerk of the City.of Huntingt9h Beach RVPbB\KSC\562390 -3- EXHIBIT "A" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) DESCRIPTION OF PUBLIC FACILITIES The types of public facilities to be provided.within and financed by the Community Facilities District are: (a) Street improvements including costs of condemnation;removal, demolition,grading, paving, curbs and gutters, sidewalks, street lights and parkway and landscaping related thereto. (b) Storm drains, drainage storage ponds and drainage channels including landscaping, if applicable. (c) Sewers, sewer treatment facilities and sewer capacity acquisition. (d) Wetlands redemption, remediation and relocation. (e) Public park and recreation facilities, including beach access facilities and pedestrian bridge. (f) Water distribution-facilities.:including fire-hydrants,and reclaimed-water.and-.-water storage facilities. (g) Street signalization and signage, including traffic fees. (h) Fire facilities including structures and capital equipment. (i) Beach maintenance facilities. (j) Acquisition of land, rights-of-way and easements necessary for any of the facilities specified in paragraphs (a)through (i) above. (k) The incidental expenses which will be incurred are: (i) the cost of engineering, planning and designing such facilities and the cost of environmental evaluations thereof,(ii)all costs associated with the creation of the proposed community facilities district, issuance of the bonds thereof, the 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 community facilities district, and (iii) any other expenses incidental to the construction, acquisition,completion, and inspection of such facilities. RVPUB\KSC\562390 A-I EXHIBIT "B" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) LEGAL DESCRIPTION CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO.2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, .STATE OF CALIFORNIA City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, includes the land situated in the State of California, County of Orange, City of Huntington Beach, described as follows: Lot 1 of Tract No. 15535, Recorded September 14, 1999 in Map Book 790, Pages 44-50, Records of Orange County, California. RVPUB\KSC\562390 B-1 EXHIBIT "C" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel-of Taxable Property in the City of Huntington Beach Community Facilities DistrictNo.2000-1 (Grand Coast Resort)(herein CFD No. 2000-1)shall be levied and collected according to the tax liability determined.by the Administrator through the application of the procedures described below. The leasehold interests in the real property in CFD No. 2000-1, 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 capitalized terms hereinafter set forth have the following meanings when used in this Rate and Method of Apportionment: 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, or the other parcel map recorded with the County Recorder. If the Acreage of a particular Parcel is unclear after-reference.to available maps.the Administrator shall determine the appropriate.Acreage for..a.Parcel. Act means Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City of Huntington Beach and,as applicable,the Mello-Roos Community Facilities Act of 1982,as amended, being Chapter 2.5(commencing with Section 53311),Part 1,Division 2,of Title 5 of the Government Code of the State of California. Administrative Expenses means any or all of the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-1: the fees and expenses of any Fiscal Agent or trustee(including any fees and expenses of its counsel) employed in connection with any Bonds; any costs associated with the marketing or remarketing of the Bonds; the expenses of the Administrator and the City in carrying out their duties under any Indenture or resolution with respect to the Bonds, including, but not limited to, the levy and collection of the Special Tax, the fees and expenses of legal counsel,charges levied by the County or any division or office thereof in connection with the levy and collection of Special Taxes, audits, continuing disclosure or other amounts needed to pay arbitrage rebate to the federal government with respect to Bonds; costs associated with complying with continuing disclosure requirements; costs associated with responding to public inquiries regarding Special Tax levies and appeals; attorneys' fees and other costs associated with commencement or pursuit of foreclosure for delinquent Special Taxes; and all other costs and expenses of City, the Administrator, the County, and any Fiscal Agent, escrow agent or trustee related to the administration of CFD No. 2000-1. Administrator means the Director of Economic Development or such other person or entity designated by the City Administrative Officer or the City Council to administer the Special Tax according to this Rate and Method of Apportionment of Special Tax. RVPUB\KSC\562390 C-1 Assessor's Parcel or Parcel means a lot, parcel or airspace parcel shown on 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. Bonds mean any bonds or other debt(as defined in Section 53317(d) of the Act), whether in one or more series, issued by the City for CFD No. 2000-1 under the Act. City means the City of Huntington Beach. City Council means the City.Council-of the City of Huntington Beach, acting as the legislative body of CFD No. 2000-1. County means the County of Orange. Development Agreement means the Amended and Restated Disposition and Development Agreement between the City and the developer,Mayer Financial,Ltd. and its subsidiaries, successors and assigns, and any subsequent amendments thereto. Exempt Land means(1)any real property within the boundaries of CFD No. 2000-1 which generally serves the development subject to the Development Agreement.and/or Ground Lease and is owned by a governmental agency for public right-of-way purposes including, but not limited to, streets, public walkway corridors, and slopes as determined in each Fiscal Year by-the Administrator or(2) any Assessor's Parcel for which the.Special Tax with respect to the leasehold interest has been paid in full. Fiscal Agent means the fiscal agent who is a party to the Indenture, if so approved. Fiscal Year means the period commencing on July 1 and ending on the following June 30,in any year in which the Bonds are outstanding. Ground Lease means the ground lease with respect to the land within CFD No. 2000-1 boundary covering a term exceeding the maturity date for the Bonds between the City and the tenant, Mayer Financial,Ltd. and its subsidiaries, successors and assigns, and any subsequent amendments thereto. Indenture means the indenture, fiscal agent agreement, resolution or other instrument approved pursuant to the Resolution of Issuance and pursuant to which Bonds are issued,as modified,amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. Maximum Special Tax means, with respect to the leasehold interest in any Parcel of Taxable Property,the maximum Special Tax, determined in accordance with Section C, that can be levied in any Fiscal Year on the leasehold interest in such Parcel. Outstanding Bonds means all Bonds which are then outstanding under the Indenture. Reserve Fund means the fund of that name created under the Indenture. Resolution of Issuance means the resolution adopted by the City Council of the City, acting as the legislative body of CFD No. 2000-1, authorizing the issuance of the Bonds in accordance with the Act. RVPLB\KSC\562390 C-2 ►1 Special Tax means the special tax to be levied pursuant to the Act and this Rate and Method of Apportionment of Special Tax in each Fiscal Year on the leasehold interests in Taxable Property within CFD No. 2000-1. Special Tax Requirement means the amount required in any Fiscal Year for CFD No. 2000-1 necessary: (i)to pay the annual scheduled debt service on the Outstanding Bonds due in the calendar year which commences in such Fiscal Year, (ii)to pay any amounts required to establish or replenish the Reserve Fund for all Outstanding Bonds, (iii) to pay Administrative Expenses, and (iv) to pay costs of any credit enhancement (including fees and expenses related to any letter of credit) for the Bonds, and less a credit for available funds determined pursuant to the Indenture. Taxable Property means all of the Assessor's Parcels within the boundaries of CFD No. 2000-1, which are not Exempt Land or exempt from the Special Tax pursuant to law. Trustee means the trustee who is a party to the Indenture, if so approved. B. IDENTIFYING TAXABLE PROPERTY Not less than fifteen business days prior to the beginning of.each Fiscal Year,the Administrator shall determine which Parcels in CFD No. 2000-1 are Taxable Property. The leasehold interest in the Taxable Property shall be subject to Special.Taxes in accordance with the rate and method of apportionment described in Sections C and D below. C. . MAXIMUM SPECIAL TAX The Maximum Special Tax for the leasehold interests-iii Taxable Property in CFD No. 2000-1 shall be the greater of(1)$130,000 per Acre or(2)the amount determined pursuant to the following steps: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.1 and add the Administrative Expenses; Step 3: Determine the Acreage of Taxable Property within the CFD No. 2000-1; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Special Tax per Acre of Taxable Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2000-2001, and for each Fiscal Year thereafter,the City Council shall levy the Special Tax proportionately on each Assessor's Parcel of Taxable Property at up to 100% of the Maximum Special Tax, as determined by reference to Section C. above, as needed to satisfy the Special Tax Requirement. RVPTj7B\KSC\562390 C-3 E. LIMITATIONS No Special Taxes shall be levied on the leasehold interest in any Parcel after such Parcel becomes Exempt Land. The Special Tax may be levied and collected on the leasehold interests in Taxable Property commencing with Fiscal Year 2000-2001, and for each Fiscal Year thereafter, and until the date on which principal and interest on all Outstanding Bonds have been paid in full (or provision for their payment has been made). Upon determination by the Administrator that this requirement has been met, the Special Tax lien shall-be removed from the-leasehold interests in all Parcels in CFD No. 2000-1. F. 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.2000-1 may directly bill the special tax,may collect special taxes at a different time or in a manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Act. G. APPEALS The City Council shall establish-as part of the proceedings and administration of CFD No..2000-1, a.special three-member Review/Appeal Committee.,The Review/Appeal Committee shall interpret this.Rate,and: =Method-f,-Apportionment.--and make-determinations-.--relative-=to---the--annual administration of the Special Tax and any appeals, as herein specified. The owner of the leasehold interest in any Taxable Property within CFD No. 2000-1 claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the Review/Appeal Committee not later than one calendar year after having paid the Special Tax that is disputed. The Review/Appeal Committee shall promptly review the appeal, and if necessary, meet with the owner of the leasehold interest,consider written and oral evidence regarding the amount of the Special Tax, and resolve the appeal. If the Review/Appeal Committee's decision requires the Special Tax to be modified or changed in favor of the owner of the leasehold interest, a cash refund shall not be made (except for the last year of the levy), but an adjustment shall be made to the next Special Tax levy. This procedure shall be exclusive and its exhaustion by any owner of a leasehold interest shall be a condition precedent to any legal action by such owner. H. PREPAYMENT OF SPECIAL TAX The following definitions apply solely to this Section H.: Outstanding Bonds means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. Previously Issued Bonds means all Bonds that have been issued by CFD No. 2000-1 prior to the date of prepayment. RVPUB\KSC\562390 C-4 J 1. Prepayment in Full The Special Tax applicable to any leasehold interest in any Assessor's Parcel of Taxable Property may be prepaid. The Special Tax obligation applicable to the leasehold interest in such Assessor's Parcel in CFD No. 2000-1 may be fully prepaid and the obligation of the leasehold interest in such Assessor's Parcel to pay the Special Tax permanently satisfied as described herein. The owner of the leasehold interest intending to prepay the Special Tax obligation on one or a combination of Assessor's Parcel(s)shall provide the Administratorwith.written notice ofintent to prepay.Following receipt of such notice, the Administrator shall notify the owner of the leasehold interest in such Assessor's Parcel or Parcels of the prepayment amount of such Assessor's Parcel(s). The Administrator may charge a.reasonable fee for providing this figure. 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 by the Fiscal Agent pursuant to the Indenture. 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 datelofprepayment,the Prepayment Amount(defined below) shall be calculated := : -follows: Paragraph No. 1. For Assessor's Parcels of Taxable Property intending to prepay, compute the Maximum Special Tax for such Assessor's Parcels. 2. Divide the Maximum Special Tax computed pursuant to Paragraph 1 by the total Maximum Special Tax of all Assessor's Parcels of Taxable Property in CFD No. 2000-1, excluding any Assessor's Parcels which have prepaid their Special Taxes in full, and 3. Multiply the quotient computed pursuant to Paragraph 2 by the Outstanding Bonds as defined in this Section H to compute the amount of Outstanding Bonds to be retired and prepaid, and round the result up to the nearest multiple of$5,000 (the Bond Redemption Amount). 4. Multiply the Bond Redemption Amount computed pursuant to Paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the Redemption Premium). 5. 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. 6. Determine the Special Taxes levied on the Assessor's Parcel in the current and any previous Fiscal Year, which have not yet been paid. 7. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. RVPUB\KSC\562390 C-5 8. Add the amounts computed pursuant to Paragraphs 5 and 6 and subtract the amount computed pursuant to Paragraph 7 (the Defeasance Amount). 9. Determine the administrative fees and expenses of CFD No. 2000-1, 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). 10. Determine the reserve fund credit(the Reserve Fund Credit)which 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 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 Bonds 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. I L If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the Capitalized Interest Credit). 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Paragraphs 3, 4, 8 and 9, less the amounts computed pursuant to Paragraphs 10 and 11 (the Prepayment Amount). 13. From the Prepayment Amount,the amounts computed pursuant to Paragraphs 3,4, 8, 10 and 11 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 4 .__ ._:�.to�P�ragraph_:9a,shall..be:retained=-bythe:�Admiristrator. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under Paragraph 6 (above), the 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 that is prepaid, the City 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 pry the Special Tax shall cease. Notwithstanding the foregoing,no Special Tax prepayment shall be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2000-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 14. Prepayment in Part The Maximum Special Tax on an Assessor's Parcel of Taxable Property 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 = (PHxF) + G Where these terms are defined as follows: PP = the partial prepayment RVPUB\KSC\562390 C-6 PH= the Prepayment Amount calculated according to Section 111,minus the amounts determined in Paragraph No. 6 and 9 of Section H.1. F = the percent by which the owner ofthe leasehold interest in the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax. G = the amounts determined in Paragraph No. 6 and 9 of Section H.1. The owner of the leasehold interest in an Assessor's Parcel who desires to partially prepay the Maximum Special Tax shall notify the Administrator of(i)such owner's intent to partially prepay the Maximum Special Tax, (ii)the percentage by which the Maximum Special Tax shall be prepaid, and (iii)the company or agency that will be acting as the escrow agent, if applicable. The Administrator shall provide the owner of the leasehold interest with a statement of the amount required for the partial prepayment of the Maximum Special Tax for an Assessor's Parcel following receipt of the request. With respect to any Assessor's Parcel that is partially prepaid, CFD No. 2000-1 shall (i) distribute the funds remitted to it according to Paragraph 13 of Section H.1, and (ii) indicate in the records of CFD No. 2000-1 that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage(1.00—F)of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. RVPLB\KSC\562390 C-7 EXHIBIT "D" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) OWNERSHIP LIST TRACT & ASSESSOR'S PARCEL NOS. OWNER'S NAME Tract No. 15535 City of Huntington Beach Redevelopment Agency A.P.N. #'s: 024-250-73 024-250-76 RVPUB\KSC\562390 D-1 BEST BEST & KRIEGER LLP A CALIFORNIA LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS ARTHUR L. LITTLEWORTH• BRADLEY E. NEUFELO RICHARD T. EGGER C. MARIO JARAMILLO 3750 UNIVERSITY AVENUE WILLIAM R. DCWOLFE• PETER M. BARMACK DAVID J. HANCOCK JAY J. LEE P.O. BOX 1028 RICHARD T.ANDERSON• JEFFREY V. DUNN HAYLEY E. PETERSON JAMES C.TURNEY RIVERSIDE, CALIFORNIA 92502-1028 JOHN D WAHLIN• STEVEN C. D[BAUN ROGER K. CRAWFORD MICHAEL D. DOLIDA JOHN E..BROWN ERIC L. GARNER' SHAWN D. HAGERTY CAMA C. HAGOPIAN TELEPHONE(909)688-1 450 MICHAEL T. RIDDELL• DENNIS M. COTA JAMES P. MORRIS LISA N. LE TELECOPIERS MICHAEL GRANT' P.H.W.F. PEARCE KEVIN T. COLLI NS LeCARIE S.WHITFIELD (909)685-3083 082-461 2 FRANCIS J. BAUM• ROBE RT W. HARGREAVES CARYN L. CRAIG KAREN M. FREEMAN WWW-BBKLAW.COM G EORGE M. REYES• C. MICHAEL COWETT DAVID W. NEWMAN JOHN D. HI GGINBOTHAM WILLIAM W. FLOYD,JR. BRUCE W. BEACH JENNIFER T. BUCKMAN MA LATHY SUBRAMANIAN GREGORY L. HARDKE ARLENE PRATER MARIA E. GLESS USI MESHREKY OF COUNSEL KENDALL H. M—VEY MARK A. CASTER GLEN W. PRICE CRAIG M. MARSHALL CN RISTO PHER L. CARPENTER' CLARK H_ ALSOP MICHELLE OUELLETTE MARYMICHAEL McLEOD JEFFREY S. BALLINGER MICHAEL D. HARRIS• DAVID J. CRWIN• KEVIN K. RANDOLPH JAMES R.TOUCHSTONE M.THERESA TOLENTINO MICHAEL J.ANDELSON• CYNTHIA M. GERMANO STEVEN M. ANDERSON JUDY L- vow ENDE ANNE T.THOMAS• D OUGLAS S. PHILLIPS• MARGUERITE S. STRAND ROBERT L. PATTERSON THERESA E. ANTONUCCI DONALD F.ZIMMER• G REGORY K.WILKINSON KYLE A. SNOW BRYAN K. BENARD MELISSA W.WOO CHRISTINA L. DYER - GENE TANAKA JAMES B. GILPIN PAULA C.P.oe SOUSA VICTOR L.WOLF KIM A..BYRENS LYSA M.SALTZMAN FRANKLIN C. ADAMS DANIEL E. OLIVIER DEAN DERLETH MARCO A. MARTINEZ WILLIAM WOOD MERRILL HOWARD B. GOLDS SONIA RUBIO CARVALHO JOHN F.WALSH D. BRIAN REIDER STEPHEN P. DEITS CH JOHN O. PINKNEY DANIEL G.STEVENSON KIRK W.SMITH JOHN R. ROTTSCHAEFER PIERO C. DALLARDA JEFFRY F. FERRE MARTIN A. MUELLER DWIGHT M. MONTGOMERY DORINE LAWRENCE-HUGHES OFFICES IN J. MICHAEL SUMMEROUR WILLIAM D. DAHLING,JR. BRIAN P. HICKEY RANCHO MIRAGE(7601 568-261 1 S COTT C. SMITH BERNIE L.WILLIAMSON ALISON D.ALPERT RAYMOND BEST(1 888-1 957) JACK B. CLARKE,JR. G. HENRY WELLES JORGE A. MARTINEZ JAMES H. KRIEGER(1913-1975) ONTARIO(909)989-8584 BRIAN M. LEWIS' DINA O. HARRIS KRISHAN S. CHOPRA EUGENE BEST(1 893-1 98 11 SAN DIEGO(519) 525-1300 •A PROFESSIONAL CORPORATION File No. 23816.00000 April 18, 2000 Connie Brockway, City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: City of Huntington_ Beach Community Facilities District No. 2000-1 (Grand Coast Resort) Dear Ms. Brockway: Enclosed please find three(3)notices of special tax lien in connection with the above- referenced proceeding. Please sign and date the notices where indicated and return two(2)executed notices to our offices in the enclosed self-addressed stamped envelope. You should retain the third executed notice for your files. Our offices will arrange for the recordation of the notice with the Orange County Recorder's office. Conformed copies of the recorded notice will eventually be forwarded to you and the Chairman of the City Redevelopment Agency. Please call with any questions. Very truly yours, Krishan Chopra / for BEST BEST & KRIEGER LLP KSC:kc Enclosures EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT Recording Requested by CODE SECTION 6103 and When Recorded Return to: City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 NOTICE OF SPECIAL TAX LIEN Pursuant to the requirements of Section 3114.5 of the Streets and Highways Code Section 53328.3 of the Government Code and Section 3.56.300 of the Municipal Code of the City of Huntington Beach,the undersigned City Clerk ofthe City ofHuntington Beach,County of Orange, State of California, hereby gives notice that a lien to secure payment of special taxes is hereby imposed by the City Council of the City of Huntington Beach,County of Orange, State of California. The special taxes secured by this lien are authorized to be levied for the purpose of paying principal of and interest on bonds, the proceeds of which are being used to finance the public facilities described in Exhibit "A" attached hereto. The special taxes are authorized to be levied within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California(the"Community Facilities District"),the boundaries of which are described in Exhibit"B" attached hereto,which has now been officially formed and the lien of the special taxes is a continuing lien which shall secure each annual levy ofthe special taxes and shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special taxes cease to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. RVPUB\KSC\562390 The rates, method of apportionment, and manner of collection of the authorized special taxes are as set forth in Exhibit "C" attached hereto. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied and the lien of the special taxes canceled are also set forth in Exhibit "C" hereto. Notice is further given that upon the recording of this notice in the office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the Community Facilities District in accordance with Section 3115.5 of the Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within the Community Facilities District and not exempt.from the special taxes are set forth in Exhibit "D" attached hereto. Reference is made to the boundary map (or the amended boundary map) of the Community Facilities District recorded on September 14, 1999,in Book 78 of Maps of Assessment and Community Facilities Districts, at Page 49, and as Instrument No. 20000038289, in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the Community Facilities District. RVPUB\KSC\562390 -2- For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Office of the City Manager of the City of Huntington Beach, 2000 Main Street, Huntington Beach, California, telephone number (714)-536-5582. Dated: April / , 2000. City Clerk of the City of Hunt' on Beach RVPUB\KSC\562390 -3- EXHIBIT "A" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) DESCRIPTION OF PUBLIC FACILITIES The types of public facilities to be provided within and financed by the Community Facilities District are: (a) Street improvements including costs of condemnation, removal, demolition,grading, paving, curbs and gutters, sidewalks, street lights and parkway and landscaping related thereto. (b) Storm drains, drainage storage ponds and drainage channels including landscaping, if applicable. (c) Sewers, sewer treatment facilities and sewer capacity acquisition. (d) Wetlands redemption, remediation and relocation. (e) Public park and recreation facilities, including beach access facilities and pedestrian bridge. (f) Water distribution facilities, including fire hydrants and reclaimed water and water storage facilities. (g) Street signalization and signage, including traffic fees. (h) Fire facilities including structures and capital equipment. (i) Beach maintenance facilities. (j) Acquisition of land, rights-of-way and easements necessary for any of the facilities specified in paragraphs (a)through (i) above. (k) The incidental expenses which will be incurred are: (i) the cost of engineering, planning and designing such facilities and the cost of environmental evaluations thereof,(ii)all costs associated with the creation of the proposed community facilities district, issuance of the bonds thereof, the 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 community facilities district, and (iii) any other expenses incidental to the construction,acquisition,completion, and inspection of such facilities. RVP1jB\KSC\562390 A-I EXHIBIT "B" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) .LEGAL DESCRIPTION CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO.2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, includes the land situated in the State of California, County of Orange, City of Huntington Beach, described as follows: Lot I of Tract No. 15535, Recorded September 14, 1999 in Map Book 790, Pages 44-50, Records of Orange County, California. RVPLB\KSC\562390 B-1 S EXHIBIT "C" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel of Taxable Property in the City of Huntington Beach Community Facilities District No.2000-1(Grand Coast Resort)(herein CFD No.2000-1)shall be levied and collected according to the tax liability determined by the Administrator through the application of the procedures described below. The leasehold interests in the real property in CFD No. 2000-1, 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 capitalized terms hereinafter set forth have the following meanings when used in this Rate and Method of Apportionment: 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, or the other parcel map recorded with the County Recorder. If the Acreage of a particular Parcel is unclear after reference to available maps, the Administrator shall.determine the appropriate Acreage for a Parcel. Act means Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City of Huntington Beach and,as applicable,the Mello-Roos Community Facilities Act of 1982,as amended, being Chapter 2.5(commencing with Section 53311),Part 1,Division 2,of Title 5 of the Government Code of the State of California. Administrative Expenses means any or all of the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-1: the fees and expenses of any Fiscal Agent or trustee(including any fees and expenses of its counsel) employed in connection with any Bonds; any costs associated with the marketing or remarketing of the Bonds; the expenses of the Administrator and the City in carrying out their duties under any Indenture or resolution with respect to the Bonds, including, but not limited to, the levy and collection of the Special Tax, the fees and expenses of legal counsel,charges levied by the County or any division or office thereofin connection with the levy and collection of Special Taxes, audits, continuing disclosure or other amounts needed to pay arbitrage rebate to the federal government with respect to Bonds; costs associated with complying with continuing disclosure requirements; costs associated with responding to public inquiries regarding Special Tax levies and appeals; attorneys' fees and other costs associated with commencement or pursuit of foreclosure for delinquent Special Taxes, and all other costs and expenses of City, the Administrator, the County, and any Fiscal Agent, escrow agent or trustee related to the administration of CFD No. 2000-1. Administrator means the Director of Economic Development or such other person or entity designated by the City Administrative Officer or the City Council to administer the Special Tax according to this Rate and Method of Apportionment of Special Tax. RVPUB\KSC\562390 C-1 Assessor's Parcel or Parcel means a lot, parcel or airspace parcel shown on 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. Bonds mean any bonds or other debt(as defined in Section 53317(d)of the Act), whether in one or more series, issued by the City for CFD No. 2000-1 under the Act. City means the City of Huntington Beach. City Council means the City Council of the City of Huntington Beach, acting as the legislative body of CFD No. 2000-1. County means the County of Orange. Development Agreement means the Amended and Restated Disposition and Development Agreement between the City and the developer,Mayer Financial,Ltd. and its subsidiaries, successors and assigns, and any subsequent amendments thereto. Exempt Land means(1)any real property within the boundaries of CFD No..2000-1 which generally serves the development subject to the Development Agreement and/or Ground Lease and.is owned by a governmental agency for public right-of-way purposes'including, but not limited to, streets, public walkway corridors, and slopes as determined in each Fiscal Year by the Administrator or(2) any Assessor's Parcel for which the Special Tax with respect to the leasehold interest has been paid in full. Fiscal Agent means the fiscal agent who is a party to the Indenture, if so approved. Fiscal Year means the period commencing on July I and ending on the following June 30,in any year in which the Bonds are outstanding. Ground Lease means the ground lease with respect to the land within CFD No. 2000-1 boundary covering a term exceeding the maturity date for the Bonds between the City and the tenant, Mayer Financial,Ltd. and its subsidiaries, successors and assigns, and any subsequent amendments thereto. Indenture means the indenture, fiscal agent agreement, resolution or other instrument approved pursuant to the Resolution of Issuance and pursuant to which Bonds are issued,as modified,amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. Maximum Special Tax means, with respect to the leasehold interest in any Parcel of Taxable Property, the maximum Special Tax, determined in accordance with Section C, that can be levied in any Fiscal Year on the leasehold interest in such Parcel. Outstanding Bonds means all Bonds which are then outstanding under the Indenture. Reserve Fund means the fund of that name created under the Indenture. Resolution of Issuance means the resolution adopted by the City Council of the City, acting as the legislative body of CFD No. 2000-1, authorizing the issuance of the Bonds in accordance with the Act. RVPUB\KSC\562390 C-2 Special Tax means the special tax to be levied pursuant to the Act and this Rate and Method of Apportionment of Special Tax in each Fiscal Year on the leasehold interests in Taxable Property within CFD No. 2000-1. Special Tax Requirement means the amount required in any Fiscal Year for CFD No. 2000-1 necessary: (i)to pay the annual scheduled debt service on the Outstanding Bonds due in the calendar year which commences in such Fiscal Year, (ii)to pay any amounts required to establish or replenish the Reserve Fund for all Outstanding Bonds, (iii) to pay Administrative Expenses, and (iv) to pay costs of any credit enhancement (including fees and expenses related to any letter of credit) for the Bonds, and less a credit for available funds determined pursuant to the Indenture. Taxable Property means all of the Assessor's Parcels within the boundaries of CFD No. 2000-1, which are not Exempt Land or exempt from the Special Tax pursuant to law. Trustee means the trustee who is a party to the Indenture, if so approved. B. IDENTIFYING TAXABLE PROPERTY Not less than fifteen business days prior to the beginning of each Fiscal Year, the Administrator shall determine which Parcels in_CFD No. 2000-1 are Taxable Property. The leasehold interest in the Taxable Property shall be subject to Special Taxes in accordance with the rate and method of apportionment described in Sections C and D below. C. MAXIMUM SPECIAL TAX The Maximum Special Tax for_.the leasehold-interests-in Taxable Property in CFD No. 2000-1 shall be the greater of(1)$130,000 per Acre or(2)the amount determined pursuant to the following steps: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.1 and add the Administrative Expenses; Step 3: Determine the Acreage of Taxable Property within the CFD No. 2000-1; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Special Tax per Acre of Taxable Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2000-2001, and for each Fiscal Year thereafter,the City Council shall levy the Special Tax proportionately on each Assessor's Parcel of Taxable Property at up to 100% of the Maximum Special Tax, as determined by reference to Section C, above, as needed to satisfy the Special Tax Requirement. RVPUBUCSC\562390 C-3 E. LIMITATIONS No Special Taxes shall be levied on the leasehold interest in any Parcel after such Parcel becomes Exempt Land. The Special Tax may be levied and collected on the leasehold interests in Taxable Property commencing with Fiscal Year 2000-2001, and for each Fiscal Year thereafter, and until the date on which principal and interest on all Outstanding Bonds have been paid in full (or provision for their payment has been made). Upon,determination by the Administrator that this requirement has been met, the Special Tax lien shall be removed from the leasehold interests in all Parcels in CFD No. 2000-1. F. 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.2000-1 may directly bill the special tax,may collect special taxes at a different time or in a manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Act. G. APPEALS The City Council shall establish as part of the proceedings and administration of CFD No. 2000-1, a special three-member Review/Appeal Committee. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals, as herein specified. The owner of the leasehold interest in any Taxable Property within CFD No. 2000-1 claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the Review/Appeal Committee not later than one calendar year after having paid the Special Tax that is disputed. The Review/Appeal Committee shall promptly review the appeal, and if necessary, meet with the owner of the leasehold interest,consider written and oral evidence regarding the amount of the Special Tax, and resolve the appeal. If the Review/Appeal Committee's decision requires the Special Tax to be modified or changed in favor of the owner of the leasehold interest, a cash refund shall not be made (except for the last year of the levy), but an adjustment shall be made to the next Special Tax levy. This procedure shall be exclusive and its exhaustion by any owner of a leasehold interest shall be a condition precedent to any legal action by such owner. H. PREPAYMENT OF SPECIAL TAX The following definitions apply solely to this Section H.: Outstanding Bonds means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. Previously Issued Bonds means all Bonds that have been issued by CFD No. 2000-1 prior to the date of prepayment. RVPbB\KSC\562390 C-4 1. Prepayment in Full The Special Tax applicable to any leasehold interest in any Assessor's Parcel of Taxable Property may be prepaid. The Special Tax obligation applicable to the leasehold interest in such Assessor's Parcel in CFD No. 2000-1 may be fully prepaid and the obligation of the leasehold interest in such Assessor's Parcel to pay the Special Tax permanently satisfied as described herein. The owner of the leasehold interest intending to prepay the Special Tax obligation on one or a combination of Assessor's Parcel(s)shall provide the Administrator with written notice of intent to prepay.Following receipt of such notice, the Administrator shall notify the owner of the leasehold interest in such Assessor's Parcel or Parcels of the prepayment amount of such Assessor's Parcel(s). The Administrator may charge a reasonable fee for providing this figure. 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 by the Fiscal Agent pursuant to the Indenture. 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: Paragraph No. 1. For Assessor's Parcels of Taxable Property intending to prepay, compute the Maximum Special Tax for such Assessor's Parcels. 2. Divide the Maximum Special Tax computed pursuant to Paragraph 1 by the total Maximum Special Tax of all Assessor's Parcels of Taxable Property in CFD No. 2000-1, excluding any Assessor's Parcels which have prepaid their Special Taxes in full, and 3. Multiply the quotient computed pursuant to Paragraph 2 by the Outstanding Bonds as defined in this Section H to compute the amount of Outstanding Bonds to be retired and prepaid, and round the result up to the nearest multiple of$5,000 (the Bond Redemption Amount). 4. Multiply the Bond Redemption Amount computed pursuant to Paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the Redemption Premium). 5. 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. 6. Determine the Special Taxes levied on the Assessor's Parcel in the current and any previous Fiscal Year, which have not yet been paid. 7. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. RVPL"B\KSC\562390 C-5 8. Add the amounts computed pursuant to Paragraphs 5 and 6 and subtract the amount computed pursuant to Paragraph 7 (the Defeasance Amount). 9. Determine the administrative fees and expenses of CFD No. 2000-1, 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). 10. Determine the reserve fund credit(the Reserve Fund Credit)which 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 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 Bonds 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. 11. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the Capitalized Interest Credit). 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Paragraphs 3, 4, 8 and 9, less the amounts computed pursuant to Paragraphs 10 and 11 (the Prepayment Amount). 13. From the Prepayment Amount,the amounts-computed pursuant to Paragraphs 3,4, 8, 10 and 11 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 9 shall be retained by the Administrator. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under Paragraph 6 (above), the 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 that is prepaid, the City 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 pry the Special Tax shall cease. Notwithstanding the foregoing,no Special Tax prepayment shall be allowed unless the amount ofthe Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2000-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 14. Prepayment in Part The Maximum Special Tax on an Assessor's Parcel of Taxable Property 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 = (PHxF) + G Where these terms are defined as follows: PP = the partial prepayment RVPLB\KSC\562390 C-6 PH= the Prepayment Amount calculated according to Section H.1, minus the amounts determined in Paragraph No. 6 and 9 of Section H.1. F = the percent by which the owner ofthe leasehold interest in the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax. G = the amounts determined in Paragraph No. 6 and 9 of Section H.1. The owner of the leasehold interest in an Assessor's Parcel who desires to partially prepay the Maximum Special Tax shall notify the Administrator of(i)such owner's intent to partially prepay the Maximum Special Tax, (ii)the percentage by which the Maximum Special Tax shall be prepaid, and (iii)the company or agency that will be acting as the escrow agent, if applicable. The Administrator shall provide the owner of the leasehold interest with a statement of the amount required for the partial prepayment of the Maximum Special Tax for an Assessor's Parcel following receipt of the request. With respect to any Assessor's Parcel that is partially prepaid, CFD No. 2000-1 shall (i) distribute the funds remitted to it according to Paragraph 13 of Section H.1, and (ii)indicate in the records of CFD No. 2000-1 that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage(1.00—F)of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. RVPUB\KSC\562390 C-7 EXHIBIT "D" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) OWNERSHIP LIST TRACT & ASSESSOR'S PARCEL NOS. OWNER'S NAME Tract No. 15535 City of Huntington Beach Redevelopment Agency A.P.N. #'s: 024-250-73 024-250-76 RVPUB\KSC\562390 D-1 BEST BEST & KRIEGER LLP A CALIFORNIA LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS ARTHUR L.LITTLEWORTH• BRADLEY E. NEUFELD RICHARD T. EGGER C. MARIO JARAMILLO 3750 UNIVERSITY AVENUE WILLIAM R. D[WOLFE• PETER M. BARMACK DAVID J. HANCOCK JAY J. LEE P.O. BOX 1028 RICHARD T. ANDERSON• JEFFREY V. DUNN HAYLEY E. PETERSON JAMES C.TURNEY RIVERSIDE, CALIFORNIA 92502-1028 JOHN D WAHLIN• STEVEN C. D[BAUN ROGER K. CRAWFORD MICHAEL D. DOLIDA JOHN E'BROWN ERIC L. GARNER• SHAWN 0. HAGERTY CATIA C. HAGOPIAN TELEPHONE(909)686-1450 MICHAEL r. RIDDELL• DENNIS M. COTA JAMES P. MORRIS LISA N. LE TELECOPIERS MICHAEL GRANT• P-H.W.F. PEARCE KEV IN T.COLLINS L[CARIE S.WHITFIELD (909)685-3083 682-461 2 FRAN CIS J. BAUM• ROBERTW. HARGREAVES CARYN L. CRAIG KAREN M. FREEMAN WWW,BBKLAW.COM G EORGE M. REYES• C. MICHAEL COWET7 DAVID W. NEWMAN JOHN D. HIGGINBOTHAM WILLIAM W. FLOYD,JR. BRUCE W. BEACH JENNIFER T. BUCKMAN MALATHY SUBRAMANIAN G REGORY L. HA R DKE ARLENE PRATER MARIA E. GLESS USI MESHREKY OF COUNSEL KENDALL H. MACVEY MARK A. EASTER GLEN W. PRICE CRAIG M. MARSHALL CH RISTOPH ER L. CARPENTER` C LARK H. A SOP MICHELLE OUELLETTE MARYM ICHAEL McLEOD JEFFREY S. BALLINGER MICHAEL L HARRIS• DAVID J. ERWIN• KEVIN K. RANDOLPH JAMES R.TOUCHSTONE M.THERESA TOLENTINO MICHAEL E T.D. HARRI MICHAEL J.ANDELSON• CYNTHIA M. GERMANO STEVEN M. ANDERSON JUDY L.vow ENDE DOUGLAS S. PHILLIPS• MARGUERITE S. STRAND ROBERT L. PATTERSON THERESA E.ANTONUCCI DONALD F.ZIMMER• G REGORY K. WILKINSON KYLE A. SNOW BRYAN K. BENARD MELISSA W.WOO CHRISTINA L. DYER GENE TANAKA JAMES B. GILPIN PAULA C.P.D[SOUSA VICTOR L. WOLF KIM A. BYRENS LYSA M. SA LTZ MAN FRANKLIN C. ADAMS DANIEL E. OLIVIER DEAN DERLETH MARCO A. MARTINEZ WILLIAM WOOD MERRILL HOWARD S. GOLDS SONIA RUBIO CARVALHO JOHN F. WALSH D. BRIAN REIDER STEPHEN P. DEITSCH JOHN 0. PINKNEY DANIEL G. STEVENSON KIRK W. SMITH JOHN R. ROTTSCHAEFER PIERO C. DALLARDA JEFFRY F. FERRE MARTIN A. MUELLER DWIGHT M. MONTGOMERY DORINE LAWRENCE-HUGHES OFFICES IN J. MICHAEL SUMMEROUR WILLIAM D. DAHLING,JR. BRIAN P. HICKEY RANCHO MIRAGE(760) 568-26 1 1 5 COTT C. SMITH BERNIE L.WILLIAMSON ALISON D. ALPERT RAYMOND BEST(1 666-I 957) JACK B. CLARKE,JR. G. HENRY WELLES JORGE A. MARTINEZ JAMES H. KRIEGER(191 3-1975) ONTARIO(909)989-8584 BRIAN M. L5WIS• DINA O. HARRIS KRISHAN S. CHOPRA EUGENE BEST(1893-1981) SAN DIEGO(619)525-1300 •A PROFESSIONAL CORPORATION File No.23816.00000 April 26, 2000 Connie Brockway �=- City Clerk rj C_ ,r— - City of Huntington Beach �a 2000 Main Street NJ Huntington Beach, CA 92648 -- Re: City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) Dear Ms. Brockway: Enclosed please find a conformed copy of the Notice of Special Tax Lien for the above-referenced proceeding,which was recorded as Instrument No.20000210548 on April 24,2000 in the Orange County Recorder's Office for your records. The original notice will be returned to the City Clerk's office after the recording procedures are complete. Very truly yours, l ` Krishan Chopra for BEST BEST & KRIEGER LLP KSC:mfa Enclosure cc: Dave Garafalo, Chairman (w/enc.) RVPUB\KSC\563804 EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT Recording Requested by CODE SECTION 6103 and When Recorded Return to: 1 City Clerk Recorded in Official Records, County of Orange Gary Granville, Clerk-Recorder City of Huntington Beach 2000 Main Street I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII NO FEE Huntington Beach, CA 92648 20000210584 03:56pm 04/24/00 114 16 N33 13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NOTICE OF SPECIAL TAX LIEN Pursuant to the requirements of Section 3114.5 of the Streets and Highways Code o n Section 53328.3 of the Government Code and Section 3.56.300 of the Municipal Code of the City n 3 n ofHuntington Beach,the.undersigned City Clerk of the City of Huntington Beach,County of Orange, 3 a � State of California, hereby gives notice that a lien to secure payment of special taxes is hereby rn imposed by the City Council of the City of Huntington Beach,County of Orange, State of California. n a . The special taxes secured by this lien are authorized to be levied for the purpose of paying principal -G of and interest on bonds, the proceeds of which are being used to finance the public facilities described in Exhibit "A" attached hereto. The special taxes are authorized to be levied within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California(the"Community Facilities District"),the boundaries of which are described in Exhibit"B" attached hereto,which has now been officially formed.and the lien of the special taxes is a continuing lien which shall secure each annual levy of the special taxes and shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special taxes cease to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. R'PUB\KSC\562390 The rates, method of apportionment, and manner of collection of the authorized special taxes are as set forth in Exhibit "C" attached hereto. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied and the lien of the special taxes canceled are also set forth in Exhibit "C" hereto. Notice is further given that upon the recording of this notice in the office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the Community Facilities District in accordance with Section 3115.5 of the Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within the Community Facilities District and not exempt from the special taxes are set forth in Exhibit "D" attached hereto. Reference is made to the boundary map (or the amended boundary map) of the Community Facilities District recorded on September 14, 1999, in Book 78 of Maps of Assessment and Community Facilities Districts, at Page 49, and as Instrument No. 20000038289,in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the Community Facilities District. RVPUB\KSC\562390 -2- For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Office of the City Manager of the City of Huntington Beach, 2000 Main Street, Huntington Beach, California, telephone number(714)-536-5582. Dated: April 2000. G� . City Clerk of the City of Iluntin on Beach RVPUB\KSC\562390 '3' EXHIBIT "A" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) i DESCRIPTION OF PUBLIC FACILITIES The types of public facilities to be provided within and financed by the Community Facilities District are: (a) Street improvements including costs of condemnation,removal, demolition,grading, paving, curbs and gutters, sidewalks, street lights and parkway and landscaping related thereto. (b) Storm drains, drainage storage ponds and drainage channels including landscaping, if applicable. (c) Sewers, sewer treatment facilities and sewer capacity acquisition. (d) Wetlands redemption, remediation and relocation. (e) Public park and recreation facilities, including beach access facilities and pedestrian bridge. (f) Water distribution facilities, including fire hydrants and reclaimed water and water storage facilities. (g) Street signalization and signage, including traffic fees. (h) Fire facilities including structures and capital equipment. (i) Beach maintenance facilities. (j) Acquisition of land, rights-of-way and easements necessary for any of the facilities specified in paragraphs (a)through (i) above. (k) The incidental expenses which will be incurred are: (i) the cost of engineering, planning and designing such facilities and the cost of environmental evaluations thereof,(ii)all costs associated with the creation of the proposed community facilities district, issuance of the bonds thereof, the 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 community facilities district, and (iii) any other expenses incidental to the construction,acquisition,completion, and inspection of such facilities. R VPUB\K30562390 A-1 EXHIBIT "B" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) LEGAL DESCRIPTION CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO.2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, includes the land situated in the State of California, County of Orange, City of Huntington Beach, described as follows: Lot 1 of Tract No. 15 53 5, Recorded September 14, 1999 in Map Book 790, Pages 44-50, Records of Orange County, California. RVPUI3UCSC%562390 B-1 EXHIBIT "C" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel of Taxable Property in the City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort)(herein CFD No.2000-1)shall be levied and collected according to the tax liability determined by the Administrator through the application of the procedures described below. The leasehold interests in the real property in CFD No. 2000-1,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 capitalized terms hereinafter set forth have the following meanings when used in this Rate and Method of Apportionment: 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, or the other parcel map recorded with the County Recorder. If the Acreage of a particular Parcel is unclear after reference to available maps, the Administrator shall determine the appropriate Acreage for a Parcel. Act means Chapter 3.56(commencing with Section 3.56.010)of the Municipal Code of the City of Huntington Beach and,as applicable,the Mello-Roos Community Facilities Act of 1982,as amended, being Chapter 2.5(commencing with Section 53311),Part 1,Division 2,of Title 5 of the Government Code of the State of California. Administrative Expenses means any or all of the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-1: the fees and expenses of any Fiscal Agent or trustee(including any fees and expenses of its counsel) employed in connection with any Bonds; any costs associated with the marketing or remarketing of the Bonds; the expenses of the Administrator and the City in carrying out their duties under any Indenture or resolution with respect to the Bonds, including, but not limited to, the levy and collection of the Special Tax, the fees and expenses of legal counsel,charges levied by the County or any division or office thereof in connection with the levy and collection of Special Taxes, audits, continuing disclosure or other amounts needed to pay arbitrage rebate to the federal government with respect to Bonds; costs associated with complying with continuing disclosure requirements; costs associated with responding to public inquiries regarding Special Tax levies and appeals; attorneys' fees and other costs associated with commencement or pursuit of foreclosure for delinquent Special Taxes; and all other costs and expenses of City, the Administrator, the County, and any Fiscal Agent, escrow agent or trustee related to the administration of CFD No. 2000-1. Administrator means the Director of Economic Development or such other person or entity designated by the City Administrative Officer or the City Council to administer the Special Tax according to this Rate and Method of Apportionment of Special Tax. RVPUB\KSC\562390 C-1 Assessor's Parcel or Parcel means a lot, parcel or airspace parcel shown on 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. Bonds mean any bonds or other debt(as defined in Section 53317(d)of the Act), whether in one or more series, issued by the City for CFD No. 2000-1 under the Act. City means the City of Huntington Beach. City Council means the City Council of the City of Huntington Beach, acting as the legislative body of CFD No. 2000-1. County means the County of Orange. Development Agreement means the Amended and Restated Disposition and Development Agreement between the City and the developer,Mayer Financial,Ltd.and its subsidiaries, successors and assigns, and any subsequent amendments thereto. Exempt Land means(1)any real property within the boundaries of CFD No. 2000-1 which generally serves the development subject to the Development Agreement and/or Ground Lease and is owned , by a governmental agency for public right-of-way purposes including, but not limited to, streets, public walkway corridors, and slopes as determined in each Fiscal Year by the Administrator or(2) any Assessor's Parcel for which the Special Tax with respect to the leasehold interest has been paid in full. Fiscal Agent means the fiscal agent who is a party to the Indenture, if so approved. Fiscal Year means the period commencing on July I and ending on the following June 30,in any year in which the Bonds are outstanding. Ground Lease means the ground lease with respect to the land within CFD No. 2000-1 boundary covering a term exceeding the maturity date for the Bonds between the City and the tenant, Mayer Financial,Ltd. and its subsidiaries, successors and assigns, and any subsequent amendments thereto. Indenture means the indenture, fiscal agent agreement, resolution or other instrument approved pursuant to the Resolution of Issuance and pursuant to which Bonds are issued,as modified,amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. Maximum Special Tax means, with respect to the leasehold interest in any Parcel of Taxable Property,the maximum Special Tax, determined in accordance with Section C, that can be levied in any Fiscal Year on the leasehold interest in such Parcel. Outstanding Bonds means all Bonds which are then outstanding under the Indenture. Reserve Fund means the fund of that name created under the Indenture. Resolution of Issuance means the resolution adopted by the City Council of the City, acting as the legislative body of CFD No. 2000-1, authorizing the issuance of the Bonds in accordance with the Act. RVPUB\KSC\562390 C-2 Special Tax means the special tax to be levied pursuant to the Act and this Rate and Method of Apportionment of Special Tax in each Fiscal Year on the leasehold interests in Taxable Property within CFD No. 2000-1. Special Tax Requirement means the amount required in any Fiscal Year for CFD No. 2000-1 necessary: (i)to pay the annual scheduled debt service on the Outstanding Bonds due in the calendar year which commences in such Fiscal Year, (ii)to pay any amounts required to establish or replenish the Reserve Fund for all Outstanding Bonds, (iii) to pay Administrative Expenses, and (iv) to pay costs of any credit enhancement (including fees and expenses related to any letter of credit) for the Bonds, and less a credit for available funds determined pursuant to the Indenture. Taxable Property means all of the Assessor's Parcels within the boundaries of CFD No. 2000-1, which are not Exempt Land or exempt from the Special Tax pursuant to law. Trustee means the trustee who is a party to the Indenture, if so approved. B. IDENTIFYING TAXABLE PROPERTY Not less than fifteen business days prior to the beginning of each Fiscal Year,the Administrator shall determine which Parcels in CFD No. 2000-1 are Taxable Property. The leasehold interest in the Taxable Property shall be subject to Special Taxes in accordance with the rate and method of apportionment described in Sections C and D below. C. MAXIMUM SPECIAL TAX The Maximum Special Tax for the leasehold interests in Taxable Property in CFD No. 2000-1 shall be the greater of(1)$130,000 per Acre or(2)the amount determined pursuant to the following steps: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.1 and add the Administrative Expenses; Step 3: Determine the Acreage of Taxable Property within the CFD No. 2000-1; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Special Tax per Acre of Taxable Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2000-2001,and for each Fiscal Year thereafter,the City Council shall levy the-Special Tax proportionately on each Assessor's Parcel of Taxable Property at up to 100% of the Maximum Special Tax, as determined by reference to Section C, above, as needed to satisfy the Special Tax Requirement. RVPUB\KSC\562390 C-3 E. LIMITATIONS No Special Taxes shall be levied on the leasehold interest in any Parcel after such Parcel becomes Exempt Land. The Special Tax may be levied and collected on the leasehold interests in Taxable Property commencing with Fiscal Year 2000-2001, and for each Fiscal Year thereafter, and until the date on which principal and interest on all Outstanding Bonds have been paid in full (or provision for their payment has been made). Upon determination by the Administrator that this requirement has been met, the Special Tax lien shall be removed from the leasehold interests in all Parcels in CFD No. 2000-1. F. 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.2000-1 may directly bill the special tax,may collect special taxes at a different time or in a manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Act. G. APPEALS The City Council shall establish as part of the proceedings and administration of CFD No. 2000-1, a special three-member Review/Appeal Committee. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals, as herein specified. The owner of the leasehold interest in any Taxable Property within CFD No. 2000-1 claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the Review/Appeal Committee not later than one calendar year after having paid the Special Tax that is disputed. The Review/Appeal Committee shall promptly review the appeal, and if necessary, meet with the owner of the leasehold interest,consider written and oral evidence regarding the amount of the Special Tax, and resolve the appeal. If the Review/Appeal Committee's decision requires the Special Tax to be modified or changed in favor of the owner of the leasehold interest, a cash refund shall not be made (except for the last year of the levy), but an adjustment shall be made to the next Special Tax levy. This procedure shall be exclusive and its exhaustion by any owner of a leasehold interest shall be a condition precedent to any legal action by such owner. H. PREPAYMENT OF SPECIAL TAX The following definitions apply solely to this Section H.: Outstanding Bonds means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. Previously Issued Bonds.means all Bonds that have been issued by CFD No.20004.prior.to the - date of prepayment. RVPUBUCSC\562390 C-4 1. Prepayment in Full The Special Tax applicable to any leasehold interest in any Assessor's Parcel of Taxable Property may be prepaid. The Special Tax obligation applicable to the leasehold interest in such Assessor's Parcel in CFD No. 2000-1 may be fully prepaid and the obligation of the leasehold interest in such Assessor's Parcel to pay the Special Tax permanently satisfied as described herein. The owner of the leasehold interest intending to prepay the Special Tax obligation on one or a combination of Assessor's Parcel(s)shall provide the Administrator with written notice of intent to prepay.Following receipt of such notice, the Administrator shall notify the owner of the leasehold interest in such Assessor's Parcel or Parcels of the prepayment amount of such Assessor's Parcel(s). The Administrator may charge a reasonable fee for providing this figure. 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 by the Fiscal Agent pursuant to the Indenture. 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: Paragraph No. 1. For Assessor's Parcels of Taxable Property intending to prepay, compute the Maximum Special Tax for such Assessor's Parcels. 2. Divide the Maximum Special Tax computed pursuant to Paragraph 1 by the total Maximum Special Tax of all Assessor's Parcels of Taxable Property in CFD No. 2000-1, excluding any Assessor's Parcels which have prepaid their Special Taxes in full, and 3. Multiply the quotient computed pursuant to Paragraph 2 by the Outstanding Bonds as defined in this Section H to compute the amount of Outstanding Bonds to be retired and prepaid, and round the result up to the nearest multiple of$5,000 (the Bond Redemption Amount). 4. Multiply the Bond Redemption Amount computed pursuant to Paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the Redemption Premium). 5. 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. 6. Determine the Special Taxes levied on the Assessor's Parcel in the current and any previous Fiscal Year, which have not yet been paid. 7. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. RVPUMKSC\562390 C-5 1 8. Add the amounts computed pursuant to Paragraphs 5 and 6 and subtract the amount computed pursuant to Paragraph 7 (the Defeasance Amount). 9. Determine the administrative fees and expenses of CFD No. 2000-1, in 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). 10. Determine the reserve fund credit(the Reserve Fund Credit)which 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 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 Bonds 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. 11. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the Capitalized Interest Credit). 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Paragraphs 3, 4, 8 and 9, less the amounts computed pursuant to Paragraphs 10 and 11 (the Prepayment Amount). 13. From the Prepayment Amount,the amounts computed pursuant.to Paragraphs 3,4, 8, 10 and 11 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 9 shall be retained by the Administrator. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under Paragraph 6 (above), the 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 that is prepaid, the City 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 pry the Special Tax shall cease. Notwithstanding the foregoing,no Special Tax prepayment shall be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2000-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 14. Prepayment in Part The Maximum Special Tax on an Assessor's Parcel of Taxable Property 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 = (PHxF) + G Where these terms are defined as follows: PP = the partial prepayment RVPU'B\KSC\562390 C-6 PH= the Prepayment Amount calculated according to Section H.1,minus the amounts determined in Paragraph No. 6 and 9 of Section H.1. F = the percent by which the owner ofthe leasehold interest in the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax. G = the amounts determined in Paragraph No. 6 and 9 of Section H.1. The owner of the leasehold interest in an Assessor's Parcel who desires to partially prepay the Maximum Special Tax shall notify the Administrator of(i)such owner's intent to partially prepay the Maximum Special Tax, (ii)the percentage by which the Maximum Special Tax shall be prepaid, and (iii)the company or agency that will be acting as the escrow agent, if applicable. The Administrator shall provide the owner of the leasehold interest with a statement of the amount required for the partial prepayment of the Maximum Special Tax for an Assessor's Parcel following receipt of the request. With respect to any Assessor's Parcel that is partially prepaid, CFD No. 2000-1 shall (i) distribute the funds remitted to it according to Paragraph 13 of Section H.1, and(ii) indicate in the records of CFD No. 2000-1 that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage(1.00—F)of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. RVPUB\KSC\562390 C-7 EXHIBIT "D" CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) OWNERSHIP LIST TRACT & ASSESSOR'S PARCEL NOS. OWNER'S NAME Tract No. 15535 City of Huntington Beach Redevelopment Agency A.P.N. #'s: 024-250-73 024-250-76 RVPU13aSC\562390 D-1 April 17,2000 MEMORANDUM TO: MAYOR AND CITY COUNCIL FROM: BEST BEST&KRIEGER LLP RE: CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) On April 17,2000,at a regular meeting,the City Council will conduct a public hearing with respect to the formation of a community facilities district referred to as "City of Huntington Beach Community Facilities District No.2000-1(Grand Coast Resort),County of Orange,State of California"(the"District") pursuant to the Mello-Roos Community Facilities Act of 1982,being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code(commencing with Section 53311)(the"Act"), in order to finance,through the sale of bonds,the construction,acquisition,furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of development of the District. Enclosed is an agenda for the public hearing. After closing the public hearing,if the City Council wishes to proceed with the establishment of the district and the levy of special taxes on the land therein, then the Council should adopt the following resolutions,which are: (1) Joint Resolution of the City Council of the City of Huntington Beach and City of Huntington Beach Redevelopment Agency with Respect to Findings that the City of Huntington Beach Redevelopment Agency is a Landowner Subject to the Levy and Collection of Special RVPUB\KSC\550025 Taxes in Connection with City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort); and (2) Resolution of the City Council of the City of Huntington Beach Establishing Community Facilities District No. 2000-1 (Grand Coast Resort)of the City of Huntington Beach and Establishing the Boundaries Thereof;and (3) Resolution of the City Council ofthe City of Huntington Beach Determining the Necessity for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort)to Incur a Bonded Indebtedness and Calling a Special Election for the Community Facilities District on a Proposition for Incurring such Bonded Indebtedness;and (4) Resolution of the City Council of the City of Huntington Beach Calling a Special Election and Submitting to the Voters of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) a Proposition with Respect to the Annual Levy of Special Taxes Within the Community Facilities District to Pay Principal of and Interest on Bonds Thereof,and a Proposition with Respect to the Establishment of an Appropriations Limit for the Community Facilities District;and (5) Resolution of the City Council of the City of Huntington Beach Declaring the Results of the Consolidated Special Elections for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort). The special elections with respect to the levy of special taxes within the District, to pay principal of and interest on bonds thereof and the establishment of an appropriations limit for the district in the amount of$1,750,000 are proposed to be held on April 17, 2000. The City Clerk will act as election official and will conduct the elections. She will deliver to you a letter indicating her willingness to conduct the elections and her consent to the calling of the elections on April 17,2000. RVPUB\KSC\550025 -2- In connection with the elections,the City Clerk has received a communication from the Registrar of Voters of the County of Orange indicating that as of February 29, 2000 there were zero (0) persons registered to vote within the community facilities district. Accordingly,since the number ofregistered voters is less than 12,the voters in the elections will be the landowners,with each owner having one vote for each acre or portion thereof which he or she owns within the District. The property owner(s)will be instructed to bring the official ballots to the public hearing. Should the Council adopt the above resolutions, the property owners will be instructed to vote and deliver the ballots to the City Clerk,who will canvass the ballots and determine the results of the election with respect to each proposition set forth in the Official Ballot. After conducting the elections the City Clerk will submit a Statement of the City Clerk as to the Canvass of Ballots Voted in and the Results of the Consolidated Special Elections for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort)of the City of Huntington Beach, California,held on April 17,2000. Should the canvass of ballots report that more than two-thirds of the landowners within the community facilities district voted in favor of the propositions,then the City Council will adopt a resolution on April 17,2000 canvassing the results of the election. As part of the proceedings the City Clerk will file a Notice of Special Tax Lien with the County Recorder within 15 days from the date of the election. After all of the actions referenced above have been taken,the formation of the Community Facilities District will be complete. Ifthe City Council wishes to complete the formation of the Community Facilities District,we recommend taking the actions referred to above in the order referenced at this time. KIM A. BYRENS RVPUB\KSC\550025 -3- RESOLUTION NO.2000-34 JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AND THE BOARD OF DIRECTORS OF THE CITY OF HUNTINGTON BEACH REDEVELOPMENT AGENCY WITH RESPECT TO FINDINGS THAT THE THE CITY OF HUNTINGTON BEACH REDEVELOPMENT AGENCY IS A LANDOWNER SUBJECT TO THE LEVY AND COLLECTION OF SPECIAL TAXES WITHIN CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) WHEREAS, The City of Huntington Beach (the "City') is a municipal corporation and charter city duly organized and existing under a charter pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs and certain other matters in accordance with,and as more particularly provided in,Sections 3,5 and 7 of Article XI of the Constitution of the State of California and Section 500 of Article V of the Charter of the City;and WHEREAS,on May 3, 1999,the City Council determined that the public interest and necessity required the adoption of Ordinance No. 3417,entitled"An Ordinance of the City of Huntington Beach Providing for the City of Huntington Beach Community Facilities District Financing Law Including General Provisions and Definitions,Powers and Procedures to Issue Community Facilities District Bonds for the Purpose of Providing Financing for Specified Purposes, and Certain Other Supplemental Provisions"(the"Ordinance"),which established a procedure for the authorization of the levy of special taxes and the issuance of special tax bonds by the City, and enacted the City Special Tax Financing Improvement Code(the"Code");and WHEREAS,Section 3.56.040 of the Code allows the local agency to take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of the Code and which are not otherwise prohibited by law. NOW,THEREFORE,IT IS HEREBY RESOLVED by the City Council and the Board of Directors of the City of Huntington Beach Redevelopment Agency ("Agency'),the following: Section 1. Findings. The City Council and the Agency hereby find that the foregoing recitals are true and correct. Section 2. Determinations. The City Council and the Agency Hereby find that,pursuant to Sections 3.56.070(i)and 3.56.040 of the Code,in order to carry out the purposes of the Code,and in order for the City and Agency to carry out their respective purposes, it is necessary and convenient to determine that the Agency is a public agency landowners subject to a special tax. RVPUB\KSC\549755 Section 3. Procedures in Connection with Special Tax. The City Council and Board of Directors of the Agency hereby find that pursuant to Section 3.56.070(i)of the Code,the Agency,as fee title owner or leaseholder of any land within the District,is considered a public agency landowner and,as such, is entitled to cast votes based on such possessory interest in land located within the District for the special election proceedings scheduled to take place in connection with the formation of the District on April 17, 2000, and is subject to the levy and collection of special taxes and potential foreclosure proceedings in connection therewith. Section 4. Chairman Authorized to Execute and Submit Ballot. The Chairman of the Agency is hereby authorized to execute and submit the official ballot in connection with the special election for the District to be held on April 17,2000. PASSED AND ADOPTED by the City Council and the Board of Directors of the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the 17th day of April,2000. MayodChairman ATTEST: APPROVED AS TO FORM: ywa. City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED City A&Mstrator Director of'Economic Development `� RVPUB\KSC\549755 -2- Res. No. 2000-34 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said . City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of April, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-offs io Clerk of the City Council of the City of Huntington Beach, California STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF HUNTINGTON ) BEACH ) I, Connie Brockway ,City Clerk of the City of Huntington Beach,hereby certify this to be a true and correct copy of Resolution Number 2000-34 i. Witness my hand and the seal of the City of Huntington Beach this 17thday of April,2000. City Clerk RVPUB\KSC\549755 -3 RESOLUTION NO. 2000-35 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT)AND ESTABLISHING THE BOUNDARIES THEREOF WHEREAS,the City Council(the"City Council')of the City of Huntington Beach("City") has heretofore adopted on January 18,2000,Resolution No.2000-5,stating that a proposed community facilities district to be known as "City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort),County of Orange,State of California"(the"Community Facilities District"),is pro- posed to be established under the terms of Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City of Huntington Beach (the "Code") and Chapter 2.5 (commencing with § 53311)of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the establishment of the Community Facilities District;and WHEREAS,notice was published and mailed to the owners of property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District, the levy of the special taxes therein, the financing and refinancing of public facilities therein,and the incurring of a bonded indebtedness by the Community Facilities District,and of the time and place of said public hearing; and WHEREAS, the date for the public hearing on the establishment of the Community Facilities District was continued to April 17,2000,pursuant the City Council's finding that the complexity of the proposed Community Facilities District required additional time, which continuance is within six months of the originally proposed hearing date;and WHEREAS, on April 17, 2000, at the time and place specified in said published and mailed notices,the City Council opened and held a public hearing as required by law relative to the forma- tion of the Community Facilities District,the levy of the special taxes therein and the financing of facilities by the Community Facilities District;and WHEREAS, prior to said hearing there was filed with the City Council a report (the "Report") containing a description of the services being financed within and for the Community Facilities District, and an estimate of the cost of such financing, as required by Section 53321.5 of the California Government Code;and WHEREAS,at the public hearing all persons desiring to be heard on all matters pertaining to the establishment of the Community Facilities District,the levy of the special taxes and the financing of RVPUB\KAB\507625 the public facilities therein were heard,and a full and fair hearing was held; and WHEREAS,the City Council may therefore proceed to establish the Community Facilities District; NOW,THEREFORE,IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach,the following: Section 1. Findings. The City Council finds as follows: (i)all of the preceding recitals are correct,(ii)on April 17,2000,pursuant to notice thereof duly given as provided by law,the City Council conducted a public hearing with respect to the establishment of the Community Facilities District and the annual levying of specified special taxes on the taxable property within the Community Facilities District to pay for public facilities for the Community Facilities District which are described in Section 3 hereof,(iii) the boundary map of the Community Facilities District has beenrecorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code as Instrument No.20000038289 in Book 78 of Book of Maps of Assessment and Community Facilities Districts at page 49 of the Official Records of the County of Orange, (iv) all prior proceedings with respect to the establishment of the Community Facilities District prior to and during the hearing with respect to the establishment of the Community Facilities District conducted by the City Council on April 17,2000,were valid and in conformity with the requirements of Chapter 2.5 (commencing with§ 53311)of Part 1 of Division 2 of Title 5 of the California Government Code,(v)no written protests were received at or prior to the time of said hearing against the establishment of the Community Facilities District or the levying of said special taxes by the Community Facilities District, and said special taxes have,therefore,not been limited by majority protest pursuant to Section 53324 of the California Government Code, (vi)the City Council is,therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the California Government Code for the establishment of City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort),County of Orange, State of California,and the Community Facilities District should be established. Section2. EstablishmentofDistrict City ofHuntingtonBeach Community FacilitiesDistrict No. 2000-1 (Grand Coast Resort), County of Orange, State of California, is hereby established The boundaries of the Community Facilities District are set forth in Exhibit "A' attached hereto and are also shown on the map entitled"Proposed Boundaries of City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort),County of Orange,State of California"which is on file with the Clerk and said boundaries are hereby established. Section 3. Determinations. The City Council hereby finds that, pursuant to Sections 3.56.070(i)and 3.56.040 of the City's Special Tax Financing Improvement Code,in order to carry out. the purposes of such Code,and in order for the City and City of Huntington Beach Redevelopment Agency ("Agency') to carry out their respective purposes, it is necessary and convenient to determine that the Agency is a public agency landowner subject to a special tax. -2- RVPUB\KAB\507625 Section 4. Procedures in Connection with Special Tax. The City hereby finds that pursuant to Section 3.56.070(i)of the City Special Tax Financing Improvement Code,the Agency,as fee title owner of land within the District,is considered a public agency landowner and,as such,is entitled to cast votes based on such possessory interest in land located within the District for the special election proceedings scheduled to take place in connection with the formation of the District,and is subject to the levy and collection of special taxes and potential foreclosure proceedings in connection therewith. Section 5. Types of Facilities:Incidental Expenses The types of public facilities proposed to be provided within and financed by the proposed Community Facilities District are: (a) Street improvements including costs of condemnation, removal, demolition, grading, paving, curbs and gutters, sidewalks, street fights and parkway and landscaping related thereto. (b) Storm drains, drainage storage ponds and drainage channels including landscaping, if applicable. (c) Sewers, sewer treatment facilities and sewer capacity acquisition. A Wetlands redemption,remediation and relocation. (e) Public park and recreation facilities, including beach access facilities and pedestrian bridge. (fl Water distribution facilities,including fire hydrants and reclaimed water and water storage facilities. (g) Street signalization and signage,including traffic fees. (h) Fire facilities including structures and capital equipment. (i) Beach maintenance facilities. (j) Acquisition of land, rights-of-way and easements necessary for any of the facilities specified in paragraphs(a)through(i)above. (k) The incidental expenses which will be incurred are:(i) the cost of engineering,planning and designing such facilities and the cost of environmental evaluations thereof, (ii) all costs -3- RVPUB\KAB\507625 associated with the creation of the proposed community facilities district, issuance of the bonds thereof,the determination of the amount of and collection oftaxes,the payment of taxes,and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district, and (iii) any other expenses incidental to the construction, acquisition,completion,and inspection of such facilities. Section 6. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay for all such facilities and to pay the principal of and interest on the bonds of the Community Facilities District and any territory to be annexed in the future, and the annual administrative expenses of City and the Community Facilities District in determining,apportioning,levying and collecting such special taxes,and in paying the principal of and interest on such bonds,and the costs of registering,exchanging and transferring such bonds, secured by the recordation of a continuing lien against all taxable or nonexempt property in the Community Facilities District, and maintaining a reserve fund for such bonds, and paying any amounts that must be paid to the United States in order to preserve the tax-exempt status of such bonds shall be annually levied within the Community Facilities District and any territory to be annexed in the fixture. The rate and method of apportionment of said special taxes shall be as set forth in Exhibit"B" attached hereto and by this reference made a part hereof. The City Council finds that the methodology for determining and apportioning annual amounts of special taxes,and maximum annual amounts of special taxes set forth in Exhibit"B"hereto are based upon the cost of making the public facilities available to each lot and parcel in the Community Facilities District. The special taxes will be apportioned to each lot or parcel on the foregoing basis pursuant to Section 53325.3 of the California Government Code and,therefore,such special taxes are not on or based upon the ownership of real property. Pursuant to Section 53340 of the California Goverment Code,the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subjectto the same penalties and the same procedure,sale,and lien priority in case of delinquency as is provided for ad valorem taxes. However,under no circumstances shall the special tax levied against any parcel subject to the levy of the special tax pursuant to the rate and method of apportionment be increased.as a consequence of delinquency or default by the owner of any other parcel or parcels within the proposed Community Facilities District by more than ten(10)percent. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code,a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Community Facilities District and this lien shall continue in full force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax ceases. Section 7. Annexation ofTerritorv. Other property within the boundaries of City may be annexed into the Community Facilities District upon the condition that parcels within that territory may be -4- RVPUB\KAB\507625 annexed only with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed. Section 8. Exempt Property. Pursuant to Section 53340 of the California Government Code,properties of entities oft he state,federal and local governments not subject to a leasehold interest or used for public rights of way or other public uses,shall be exempt from the levy of special taxes of the Community Facilities District. Section 9. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the Community Facilities District,and is ordered to be kept on file with the Clerk of the City as part of the transcript of these proceedings. Section 10. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the California Government Code,the City Council may accept advances of funds or work-in- kind from private persons or private entities and may provide,by resolution,for the use of those funds or that work-in-kind,for any authorized purpose,including,but not limited to,paying any costs incurred by City in creating the Community Facilities District and may enter into an agreement by resolution,with the person or entity advancing funds or work-in-kind to repay funds advanced,or to reimburse the person or entity for the value or cost,whichever is less,of the work-in-kind,as determined by the City Council. Section 11. Tender of Bonds. This City Council hereby reserves the right,on behalf of the Community Facilities District to accept tenders of bonds in full or partial payment of special taxes to be levied within the Community Facilities District pursuant to Section 3.56.320 of the Code. Section 12. Description of Voting Procedures. The voting procedures to be followed in conducting the consolidated special elections on (i) the proposition of the Community Facilities District incurring a bonded indebtedness in an amount not to exceed$16,000,000,(ii)the proposition with respect to the levy of special taxes on the land within the Community Facilities District to pay the principal of and interest on the bonds thereof,and(iii)the proposition with respect to the establishment of an appropriations limit for the Community Facilities District in the amount of$1,750,000,if the Community Facilities District is established and such consolidated special elections (the"consolidated special elections")are held,shall be as follows: (a) If at least 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public or protest hearing (the "protest hearing"),the vote in the consolidated special elections shall be by the registered voters of the . Community Facilities District with each voter having one vote. In that event,the consolidated special elections shall be conducted by the Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code and pursuant to the provisions of the California Elections Code governing elections of cities,insofar as they may be applicable, -5- RVPUB\KAB\507625 and pursuant to said Section 53326 the ballots for the consolidated special elections shall be distributed to the qualified electors of the Community Facilities District by mail with return postage prepaid or by personal service,and the consolidated special elections shall be conducted as a mail ballot election. (b) If 12 persons have not been registered to vote within the territory of the community facilities district for each of the 90 days preceding the close of the protest hearing,and pursuant to Section 53326 of the California Government Code,the vote is therefore to be by the landowners (as defined in Section 3.56.070 of the Municipal Code of the City of Huntington Beach) of the Community Facilities District,with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District,the consolidated special elections shall be conducted by the City Clerk pursuant to the Municipal Code of the City of Huntington Beach and Section 53326 of the California Government Code as follows: (1) The consolidated special elections shall be held on the earliest date, following the adoption by the City Council of the resolution of formation establishing the Community Facilities District pursuant to Section 53325.1 of the California Government Code,and a resolution pursuant to Section 53326 of said Code submitting the propositions with respect to (i) whether a bonded indebtedness shall be incurred for constructing and financing through the sale of bonds public facilities necessary for the formation of the Community Facilities District;(ii)the levy of special taxes to pay the principal of and interest on the bonds of the Community Facilities District and(iii)the establishing of an appropriations limit therefor to the qualified electors of the Community Facilities District,upon which such elections can be held pursuant to said Section 53326 which may be selected by the City Council,or such earlier date as the owners of land within the Community Facilities District and the Clerk agree and concur is acceptable. (2) Pursuant to said Section 53326,the consolidated special elections may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the Community Facilities District waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (3) Pursuant to said Section 53326,ballots for the consolidated special elections shall be distributed to the qualified electors by the Clerk by mail with return postage prepaid,or by personal service. (4) Pursuant to applicable sections ofthe California Elections Code governing the conduct of mail ballot elections of cities,and specifically Division 4(commencing with§4000 of the California Elections Code with respect to elections conducted by mail),the Clerk shall mail(or deliver)to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling and consolidating the consolidated special elections, and shall also mail to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official -6- RVPUB\KAB\507625 ballot but identified as a sample ballot,an impartial analysis by Counsel to City pursuant to Section 9280, as amended, of said Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281, as amended, to 9287, as amended, inclusive, and 9295, as amended, of said Code, a return identification envelope with prepaid postage thereon addressed to the Clerk for the return of voted official ballots,and a copy of the form of Resolution of Formation establishing the Community Facilities District,adopted by the City Council pursuant to Section 53325.1 of the California Government Code, and the exhibits thereto;provided,however,that such analysis and arguments may be waived with the unanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the consolidated special elections. (5) The official ballot to be mailed(or delivered)by the Clerk to each landowner shall have printed or typed thereon the name of the landowner and the number of votes to be voted by the landowner and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot,and if the landowner is other than a natural person,that he or she is an officer of or other person affiliated with the landowner entitled to vote such official ballot,that he or she has been authorized to vote such official ballot on behalf of the landowner,that in voting such official ballot it was his or her intent,as well as the intent of the landowner,to vote all votes to which the landowner is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each suchproposition,and further certifying as to the acreage of the landowner's land ownership within the Community Facilities District. (6) The return identification envelope delivered by the Clerk to each landowner shall have printed or typed thereon the following: (i)the name of the landowner, (ii)the address of the land- owner,(Hi)a declaration under penalty of perjury stating that the voter is the landowner or the autho- rized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv)the printed name and signature of the voter,(v)the address of the voter, (vi)the date of signing and place of execution of said declaration, and(vii)a notice that the envelope contains an official ballot and is to be opened only by the Clerk. (7) The instruction to voter form to be mailed by the Clerk to the landowners shall inform them that the official ballots shall be returned to the Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope withthe certification thereon completed and signed and all other information to be inserted thereon properly inserted not later than 7:00 p.m. on the date of the election, or immediately after the Resolution Calling the Special Election is adopted (8) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections,the Clerk shall canvass the votes cast in the consolidated special elections,and shall file a statement with the City Council as to the results of such canvass and -7- RVPUB\KAB\507625 the election on each proposition set forth in the official ballot. The procedures set forth in this section for conducting the consolidated special elections,ifthey are held,may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of April,2000. Mayor ATTEST: APPROVED AS TO FORM: �os� ��'4� �►ob City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED 01 City Adffmistrator Director of Economic Development -8- RVPUB\KAB\507625 EXHIIBIT A LEGAL DESCRIPTION CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO.2000-1 (GRAND COAST RESORT),COUNTY OF ORANGE, STATE OF CALIFORNIA City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort), County of Orange, State of California, includes the land situated in the State of California,County of Orange,City of Huntington Beach,described as follows: Lot 1 of Tract No. 15535,Recorded September 14, 1999 in Map Book 790,Pages 44-50,Records of Orange County, California A-1 RVPUB\KAB\507625 EXHIBIT B CITY OF HUNTINGTON BEACH. COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel of Taxable Property in the City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort)(herein CFD No.2000-1)shall be levied and collected according to the tax liability determined by the Administrator through the application of the procedures described below. The leasehold interests in the real property in CFD No. 2000-1, 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 capitalized terms hereinafter set forth have the following meanings when used in this Rate and Method of Apportionment: 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, or the other parcel map recorded with the County Recorder. If the Acreage of a particular Parcel is unclear after reference to available maps, the Administrator shall determine the appropriate Acreage for a Parcel. Act means Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City of Huntington Beach and, as applicable,the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, of Title 5 of the Government Code of the State of California. Administrative Expenses means any or all of the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-1: the fees and expenses of any Fiscal Agent or trustee (including any fees and expenses of its counsel) employed in connection with any Bonds; any costs associated with the marketing or remarketing of the Bonds;the expenses of the Administrator and the City in carrying out their duties under any Indenture or resolution with respect to the Bonds,including,but not B-1 RVPUB\KAB\507625 limited to,the levy and collection of the Special Tax,the fees and expenses of legal counsel,charges levied by the County or any division or office thereof in connection with the levy and collection of Special Taxes, audits,continuing disclosure or other amounts needed to pay arbitrage rebate to the federal government with respect to Bonds; costs associated with complying with continuing disclosure requirements; costs associated with responding to public inquiries regarding Special Tax levies and appeals;attorneys'fees and other costs associated with commencement or pursuit of foreclosure for delinquent Special Taxes;and all other costs and expenses of City,the Administrator,the County, and any Fiscal Agent, escrow agent or trustee related to the administration of CFD No. 2000-1. Administrator means the Director of Economic Development or such other person or entity designated by the City Administrative Officer or the City Council to administer the Special Tax according to this Rate and Method of Apportionment of Special Tax. Assessor's Parcel or Parcel means a lot,parcel or airspace parcel shown on 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. Bonds mean any bonds or other debt(as defined in Section 53317(d)of the Act),whether in one or more series,issued by the City for CFD No. 2000-1 under the Act. City means the City of Huntington Beach. City Council means the City Council of the City of Huntington Beach, acting as the legislative body of CFD No. 2000-1. County means the County of Orange. Development Agreement means the Amended and Restated Disposition and Development Agreement between the City and the developer,Mayer Financial,Ltd.and its subsidiaries,successors and assigns,and any subsequent amendments thereto. Exempt Land means(1) any real property within the boundaries of CFD No. 2000-1 which generally serves the development subject to the Development Agreement and/or Ground Lease and is owned by a governmental agency for public right-of-way purposes including,but not limited to,streets,public walkway corridors,and slopes as determined in each Fiscal Year by the Administrator or(2)any Assessor's Parcel for which the Special Tax with respect to the leasehold interest has been paid in M. Fiscal Agent means the fiscal agent who is a party to the Indenture,if so approved. B-2 RVPUB\KAB\507625 Fiscal Year means the period commencing on July 1 and ending on the following June 30,in any year in which the Bonds are outstanding. Ground Lease means the ground lease with respect to the land within CFD No. 2000-1 boundary covering a term exceeding the maturity date for the Bonds between the City and the tenant, Mayer Financial,Ltd. and its subsidiaries,successors and assigns,and any subsequent amendments thereto. Indenture means the indenture,fiscal agent agreement,resolution or other instrument approved pursuant to the Resolution of Issuance and pursuant to which Bonds are issued, as modified, amended.and/or supplemented from time to time,and any instr urient replacing or supplementing the same. Maximum Special Tax means,with respect to the leasehold interest in any Parcel of Taxable Property, the maximum Special Tax,determined in accordance with Section C,that can be levied in any Fiscal Year. on the leasehold interest in such Parcel. Outstanding Bonds means all Bonds which are then outstanding under the Indenture. Reserve Fund means the fund of that name created under the Indenture. Resolution of Issuance means the resolution adopted by the City Council of the City, acting as the legislative body of CFD No.2000-1,authorizing the issuance of the Bonds in accordance with the Act. Special Tax means the special tax to be levied pursuant to the Act and this Rate and Method of Apportionment of Special Tax in each Fiscal Year on the leasehold interests in Taxable Property within CFD No. 2000-1. Special Tax Requirement means the amount required in any Fiscal Year for CFD No. 2000-1 necessary: (i)to pay the annual scheduled debt service on the Outstanding Bonds due in the calendar year which commences in such Fiscal Year, (ii) to pay any amounts required to establish or replenish the Reserve Fund for all Outstanding Bonds,(iii)to pay Administrative Expenses,and(iv)to pay costs of any credit enhancement(including fees and expenses related to any letter of credit)for the Bonds,and less a credit for available funds determined pursuant to the Indenture. Taxable Property means all of the Assessor's Parcels within the boundaries of CFD No.2000-1,which are not Exempt Land or exempt from the Special Tax pursuant to law. Trustee means the trustee who is a party to the Indenture,if so approved. B. IDENTIFYING TAXABLE PROPERTY B-3 RVPUB\KAB\507625 Not less than fifteen business days prior to the beginning of each Fiscal Year, the Administrator shall determine which Parcels in CFD No.2000-1 are Taxable Property.The leasehold interest in the Taxable Property shall be subject to Special Taxes in accordance with the rate and method of apportionment described in Sections C and D below. C. MAXIMUM SPECIAL TAX The Maximum Special Tax for the leasehold interests in Taxable Property in CFD No.2000-1 shall be the greater of(1)$130,000 per Acre or(2)the amount determined pursuant to the following steps: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.1 and add the Administrative Expenses; Step 3: Determine the Acreage of Taxable Property within the CFD No. 2000-1; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Special Tax per Acre of Taxable Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2000-2001,and for each Fiscal Year thereafter,the City Council shall levy the Special Tax proportionately on each Assessor's Parcel of Taxable Property at up to 100% of the Maximum Special Tax,as determined by reference to Section C,above,as needed to satisfy the Special Tax Requirement. E. LIMITATIONS No Special Taxes shall be levied on the leasehold interest in any Parcel after such Parcel becomes Exempt Land. The Special Tax may be levied and collected on the leasehold interests in Taxable Property commencing with Fiscal Year 2000-2001,and for each Fiscal Year thereafter,and until the date on which principal and interest on all Outstanding Bonds have been paid in full (or provision for their payment has been made). Upon determination by the Administrator that this requirement has been met,the Special Tax lien shall be removed from the leasehold interests in all Parcels in CFD No. 2000-1. B-4 RVPUB\KAB\507625 F. 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. 2000-1 may directly bill the special tax, may collect special taxes at a different time or in a manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Act. G. APPEALS The City Council shall establish as part of the proceedings and administration of CFD No. 2000-1, a special three-member Review/Appeal Committee.The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals, as herein specified. The owner of the leasehold interest in any Taxable Property within CFD No.2000-1 claiming that the amount or application of the Special Tax is not convect may file a written notice of appeal with the Review/Appeal Committee not later than one calendar year after having paid the Special Tax that is disputed. The Review/Appeal Committee shall promptly review the appeal, and if necessary,meet with the owner of the leasehold interest,consider written and oral evidence regarding the amount of the Special Tax, and resolve the appeal. If the Review/Appeal Committee's decision requires the Special Tax to be modified or changed in favor of the owner of the leasehold interest,a cash refund shall not be made(except for the last year of the levy),but an adjustment shall be made to the next Special Tax levy.This procedure shall be exclusive and its exhaustion by any owner of a leasehold interest shall be a condition precedent to any legal action by such owner. H. PREPAYMENT OF SPECIAL TAX The following definitions apply solely to this Section H.: Outstanding Bonds means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. Previously Issued Bonds means all Bonds that have been issued by CFD No.2000-1 prior to the date of prepayment. 1. Prepayment in Full The Special Tax applicable to any leasehold interest in any Assessor's Parcel of Taxable Property may be B-5 RVPUB\KAB\507625 prepaid. The Special Tax obligation applicable to the leasehold interest in such Assessor's Parcel in CFD No.2000-1 may be fully prepaid and the obligation ofthe leasehold interest in such Assessor's Parcel to pay.the Special Tax permanently satisfied as described herein. The owner of the leasehold interest intending to prepay the Special Tax obligation on one or a combination of Assessor's Parcel(s) shall provide the Administrator with written notice of intent to prepay. Following receipt of such notice, the Administrator shall notify the owner of the leasehold interest in such Assessor's Parcel or Parcels of the prepayment amount of such Assessor's Parcel(s). The Administrator may charge a reasonable fee for providing this figure. 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 by the Fiscal Agent pursuant to the Indenture. 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: Paragraph No. 1. For Assessor's Parcels of Taxable Property intending to prepay,compute the Maximum Special Tax for such Assessor's Parcels. 2. Divide the Maximum Special Tax computed pursuant to Paragraph 1 by the total Maximum Special Tax of all Assessor's Parcels of Taxable Property in CFD No.2000-1,excluding any Assessor's Parcels which have prepaid their Special Taxes in full,and 3. Multiply the quotient computed pursuant to Paragraph 2 by the Outstanding Bonds as defined in this Section H to compute the amount of Outstanding Bonds to be retired and prepaid,and round the result up to the nearest multiple of$5,000(the Bond Redemption Amount). 4. Multiply the Bond Redemption Amount computed pursuant to Paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the Redemption Premium). B-6 RVPUB\KAB\507625 5. Compute the amount needed to pay interest on the Bond Redemption Amount from the fast bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 6. Determine the Special Taxes levied on the Assessor's Parcel in the current and any previous Fiscal Year, which have not yet been paid. 7. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 8. Add the amounts computed pursuant to Paragraphs 5 and 6 and subtract the amount computed pursuant to Paragraph 7(the Defeasance Amount). 9. Determine the administrative fees and expenses of CFD No. 2000-1, 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). 10. Determine the reserve fund credit(the Reserve Fund Credit)which shall equal the lesser of (a) the expected reduction in the reserve requirement(as defined in the Indenture),if any,associated withthe redemption of Outstanding 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 Bonds 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. 11. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year,a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the Capitalized Interest Credit). 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Paragraphs 3, 4, 8 and 9, less the amounts computed pursuant to Paragraphs 10 and 11 (the Prepayment Amount). 13. From the Prepayment Amount,the amounts computed pursuant to Paragraphs 3,4,8, 10 and 11 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 9 shall be retained by the Administrator. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under Paragraph 6(above),the 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 that is prepaid,the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of B-7 RVPUB\KAM507625 Special Taxes and the release of the Special Tax lien on such Assessor's Parcel,and the obligation of such Assessor's Parcel to pry the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2000-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 14.Prepayment in Part The Maximum Special Tax on an Assessor's Parcel of Taxable Property 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= (PH xF)+G Where these terms are defined as follows: PP = the partial prepayment PH= the Prepayment Amount calculated according to Section H.1, minus the amounts determined in Paragraph No. 6 and 9 of Section H.1. F = the percent by which the owner of the leasehold interest in the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax. G = the amounts determined in Paragraph No. 6 and 9 of Section H.1. The owner of the leasehold interest in an Assessor's Parcel who desires to partially prepay the Maximum Special Tax shall notify the Administrator of(i) such owner's intent to partially prepay the Maximum Special Tax,(ii)the percentage by which the Maximum Special Tax shall be prepaid,and(iii)the company or agency that will be acting as the escrow agent,if applicable. The Administrator shall provide the owner of the leasehold interest with a statement of the amount required for the partial prepayment of the Maximum Special Tax for an Assessor's Parcel following receipt of the request. With respect to any Assessor's Parcel that is partially prepaid, CFD No. 2000-1 shall (i) distribute the funds remitted to it according to Paragraph 13 of Section H.1,and(ii)indicate in the records of CFD No. 2000-1 that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage(1.00—F)of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. B-8 RVPUB\KAB\507625 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF HUNTINGTON BEACH ) I, Connie Brockway , City Clerk of the City of Huntington Beach, do hereby certify that the foregoing Resolutio cco_3s was duly adopted by the City Council at its regular meeting held on the 17th day of April,2000,and that it was so adopted by the following roll call vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None RVPUB\KAB\507625 Res. No. 2000-35 . STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said. City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of April, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officioi6lerk of the City Council of the City of Huntington Beach, .California STATEMENT FROM THE CITY CLERK OF THE CITY OF HUNTINGTON BEACH TO THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AS TO THE CANVASS OF BALLOTS VOTED IN AND THE RESULTS OF THE SPECIAL ELECTION FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) OF THE CITY OF HUNTINGTON BEACH HUNTINGTON BEACH HELD ON APRIL 17,2000 I,Connie Brockway,City Clerk of the City of Huntington Beach,California,acting as the election official pursuant to Resolution No.2000-37,the resolution calling the election,of the City Council of the City of Huntington Beach,California(the "City Council'),make the following statements regarding the Special Election held on April 17, 2000 on (i) the proposition of the Community Facilities District incurring a bonded indebtedness in an amount not to exceed$16,000,000,(ii)the proposition with respect to the levy of special taxes on the land within the Community Facilities District to pay the principal of and interest on the bonds thereof,and(iii)the proposition with respect to the establishment of an appropriations limit for.the Community Facilities District in the amount of$1,750,000,and hereby certify that: (1) Signed written waivers entitled "Waiver of Certain Election Procedures with Respect to Landowner Voter Elections within and for City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort),County of Orange,State of California" were received from each of the owners of the land within the Community Facilities District. (2) Said written waivers,among other matters, waived compliance with the provisions of Section 53326 of the California Government Code to the effect that a special election with respect to the levy of special taxes within the Community Facilities District must be held at least 90 days,but not more than 180 days,following the adoption of the Resolution of Formation establishing the Community Facilities District (Resolution No. 2000-3 adopted by the City Council on April 17,2000)and consented to the holding of such consolidated special elections on April 17, 2000. (4) On March 17, 2000 I received a written certification from the Registrar of Voters of the County of Orange dated March 16,2000,that there were zero registered voters residing within the Community Facilities District as of February 29, 2000. Accordingly, pursuant to Section 53326 of the California Government Code, and as determined by the City Council in Resolution No. 2000-_�7 the resolution calling the election,the vote in said consolidated special elections was to be by the landowners of the Community Facilities District, with each landowner having one vote for each acre, or portion thereof,of land that he or she owns within the Community Facilities District. RVPUB\KSC\550034 (5) On February 14, 2000 I received a certificate from a licensed land surveyor,Fuscoe Engineering,the engineer who prepared the map and legal description of the boundaries of the Community Facilities District,certifying that there are 15.103 net and 15.103 gross acres of land within the Community Facilities District. (6) on °Apri1_-17, :'2000: I caused to be mailed via overnight mail to each of the landowners an Official Ballot in the form attached to Resolution No. 2000-37, the resolution calling the election,together with.a Ballot Pamphlet and Instructions to Voter containing Instructions to Landowner Voter and a Sample Ballot. Copies of said Official Ballots and said Ballot Pamphlet and Instructions to Voter are on file in my office. I also caused to be mailed via overnight mail to such landowners on said date,together with such other matters, an official identification envelope, with return postage affixed thereto, for returning the voted Official Ballot. (7) Pursuant to Section 53326 of the California Government Code, for purposes of said special election, each owner of land within the Community Facilities District was entitled to one vote for each acre or portion thereof of land within the Community Facilities District which it owned. (8) According to the aforementioned certificate received from Michael Simon, the net acreage of land within the Community Facilities District,and the number of votes to which the owners therein are entitled to as follows: Owner Net Acreage Votes City of Huntington Beach 15.103 16 Redevelopment Agency (9) Voted Official Ballots were returned to me voted by the landowners sealed in the aforementioned identification envelope prior to 7:00 p.m. on April 17, 2000, or immediately after the Resolution Calling the Special Election was adopted. Each Official Ballot which was returned was voted with a cross marked in the box after the word"YES" following each proposition set forth on the Official Ballot and had a signed statement attached that the signer(s) was/were entitled to vote such ballot on behalf of the landowner(s)whose names appeared therein,and that it was the intent of the landowner(s) to vote all votes to which the landowner(s) were entitled in the manner marked on the ballot. (10) 1 have canvassed the ballots returned in such special election, being the Official Ballots above referenced,and determined that the results of the elections with respect to each proposition set forth in said Official Ballot are as follows: RVPUB\KSC\550034 Proposition A: YES votes, _NO votes Proposition B: _YES votes, _NO votes Proposition C: YES votes, NO votes (11) More than two-thirds of the votes cast in said special election are in favor of all such propositions. DATED: April 17,2000 CITY CLERK OF THE, CITY OF HUNTINGTON BEACH By: RVPUB\KSC\550034 3 RESOLUTION NO. 2000-38 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE RESULTS OF THE CONSOLIDATED SPECIAL ELECTIONS FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT)ON THE PROPOSITIONS WITH RESPECT TO (i)INCURRING A BONDED INDEBTEDNESS IN AN - AMOUNT NOT TO EXCEED$16,000,000,(ii)THE ANNUAL LEVY OF SPECIAL TAXES TO PAY PRINCIPAL AND INTEREST ON BONDS AND (iii)THE ESTABLISH- MENT OF AN APPROPRIATIONS LIMIT AND AUTHORIZING THE RECORDATION OF THE NOTICE OF SPECIAL TAX LIEN WHEREAS, on January 18, 2000, the City Council (the "City Council') of the City of HuntingtonBeach("City")adopted Resolution No.2000-6determining the necessity for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) County of Orange, State of California(the"Community Facilities District"),to incur a bonded indebtedness in an amount not to exceed $16,000,000 and calling a special election on the proposition of incurring such a bonded indebtedness for April 17,2000 and providing for the consolidation of that election with the election on the propositions with respect to the annual levy of special taxes on taxable property within the Community Facilities District to pay principal of and interest on such bonds,and the establishment of an appropriations limit for the Com- munity Facilities District;and WHEREAS,on January 18,2000,the City Council also adopted Resolution No.2000-37 calling a special election for April 17,2000,for submitting to the voters of the Community Facilities District the proposition with respect to the annual levy of special taxes on taxable property within the Community Facilities District to pay the principal of and interest on the bonds thereof,and the proposition with respect to the establishment of an appropriations limit for the Community Facilities District,and providing for the consolidation of that election with the election on the proposition of the Community Facilities District incurring a bonded indebtedness; and WHEREAS, the City Council has received a statement from the City Clerk (the "City Clerk"),who pursuant to Resolution No. 2000-37,the resolution calling the election,was authorized to conduct the consolidated special elections and act as the election official therefor, with respect to the canvass of the ballots returned in and the results of the consolidated special elections,certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the consolidated special elections were cast in favor of approving all such propositions; NOW,THEREFORE, IT IS HEREBY RESOLVED,by the City Council of the City of Huntington Beach,the following: RVPUB\KAB\507360 Section 1. Findings. The City Council finds that: (i)there were zero persons registered to vote within the boundaries of the Community Facilities District at the time of the close of the protest hearing on April 17,2000 and pursuant to Section 53326 of the California Government Code("Section 53326") the vote in the consolidated special elections was,therefore,to be by the landowners within the Community Facilities District,with each landowner having one vote for each acre or portion of an acre of land that he or she owns or has possession OF within the Community Facilities District which would be subject to the special tax if levied at the time of the consolidated special elections;(ii)pursuant to Section 53326 and Resolution No.X/CC--37,the City Clerk distributed the ballots for the consolidated special elec- tions to the owners of all of the land included within the boundaries of the Community Facilities District(the "Property Owners"),a list of which is set forth in Exhibit"A",attached hereto and incorporated herein by reference,by personal delivery with return postage prepaid;(iii)the Property Owners waived the time limits for holding the consolidated special elections and the election dates specified in Section 53326, and consented to the calling and holding of the consolidated special elections on April 17, 2000; (iv) the consolidated special elections have been properly conducted in accordance with all statutory requirements and the provisions of Resolution No.Zw-37;(v)pursuant to Section 53326,the Property Owners,which own approximately 15.103 acres,was entitled to a total of 16 votes;(vi)the ballot was returned to the City Clerk prior to 7:00 p.m.,or immediately after the Resolution Calling the Special Election was adopted on April 17,2000,by the Property Owners;(vii)the ballot returned to the City Clerk by the Property Owners voted all votes to which they were entitled in favor of all propositions set forth therein;(viii)more than two- thirds of the votes cast in the consolidated special elections on each such proposition were cast in favor thereof, and pursuant to Sections 53328, 53329 and 53355 of the California Government Code,all such propositions carried;(ix)the City Council as the legislative body of the Community Facilities District,is therefore authorized to take the necessary action to have the Community Facilities District incur a bonded indebtedness in an amount not to exceed $16,000,000 and to annually levy special taxes on taxable property within the Community Facilities District in amounts sufficient to pay the principal of and interest on the bonds of the Community Facilities District;and(x)an appropriations limit for the Community Facili- ties District has been established in the amount of$1,750,000. Section 2. Declaration of Results. All votes voted in the consolidated special elections on the propositions with respect to the Community Facilities District incurring a bonded indebtedness in an amount not to exceed $16,000,000, the annual levy of special taxes on taxable property within.the Community Facilities District to pay the principal of and interest on the bonds thereof,and the establishment of an appropriations limit in the amount of$1,750,000 for the Community Facilities District were voted in favor thereof,and all such propositions carried. Section 3. Effect of Elections. The effect of the results of the consolidated special elections,as specified in Section 2 hereof,is that the City Council,as the legislative body of the Community Facilities District,is authorized to have the Community Facilities District incur a bonded indebtedness in an amount not to exceed$16,000,000 for the purposes set forth in Proposition A of the Official Ballot for the consolidated special elections, and, after the Community Facilities District has incurred a bonded indebtedness and issued bonds therefor, to annually levy special taxes on taxable property within the Community Facilities District in anamount sufficient to pay the principal of and interest on the bonds at the RVPUB\KABk507360 2 special tax rates and pursuant to the methodology for determining and apportioning such special taxes ,which are set forth in Exhibit"B"to Resolution No. 2000-5 adopted by the City Council .on January 18 2000,and an appropriations limit has been established for the Community Facilities District in the amount of$1,750,000. Section 4. Notice of Special Tax Lien The Clerk shall record a notice of special tax lien pursuant to Section 53328.3 of the California Government Code and Section 3114.5 of the California Streets and Highways Code. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of April,2000. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED l- ' City Admif&rator Director of Economic Development RVPUB\KAB\507360 3 EXHIBIT A List of Property Owner(s) City of Huntington Beach Redevelopment Agency RVPUB\KAB\507360 4 Res. No. 2000-38 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said. . City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of April, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-offici Clerk of the City Council of the City of .Huntington Beach, California STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF HUNTINGTON BEACH ) I, Connie Brockway , City Clerk of the City of Huntington Beach, do hereby certify that the foregoing ResolutionAce 38 was duly adopted by the City Council at its regular meeting held on the 17th day of April,2000,and that it was so adopted by the following roll call vote: AYES: _ Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk RVPUB\KAB\507360 5 Council/Agency Meeting Held: 3— 20 — 00 f)eferred/Continued to: 4 - 1-1 - 00 WApprove CPnditionally Approved ❑ Denied ity Jerk's Signature Council Meeting Date: March 20, 2000 Department ID Number: ED 00-09 c CITY OF HUNTINGTON BEACH = Ea REQUEST FOR COUNCIL ACTION; ::: 00 G+ r SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS �SUBMITTED BY: RAY SILVER, City Administrates y PREPARED BY: DAVID C. BIGGS, Economic Development Director SUBJECT: Continuation of Public Hearing on the Formation of Community Facilities District No. 2000-1 to April 17, 2000 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The formation of the Community Facilities District (CFD) will have to be delayed for a period of time due to irregularities with the registered voters identified in the proposed Community Facilities District. Due to the elections on March 7, 2000, the Registrar of Voters needs additional time to clear the voter list to reflect the current situation where there exists no voters on the property other than the Redevelopment Agency as a property owner. Funding Source: NA Recommended Action: Continue the Public Hearing on the formation of the Community Facilities District No. 2000-1 to April 17, 2000. Alternative Action(s): NA Analysis: Due to the elections being held on March 7, 2000, the formation of the Community Facilities District will have to be further delayed until the Registrar of Voters undertakes the clearing of the list of registered voters for the formation of the Community Facilities District. This will occur within the next few weeks, at which time the public hearing will be able to be conducted. The date scheduled for its continuation is April 17, 2000. Attachment(s): N/A RCA Author: Duran -1529 BEST BEST & KRIEGER LLP A CALIFORNIA LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS ARTHUR L. LITTLEWORTH• BRADLEY E. NEUFELD RICHARD T. EGGER C. MARIO JARAMILLO 3750 UNIVERSITY AVENUE WILLIAM R. DEWOLFE• PETER M. BARMACK DAVID J. HANCOCK JAY J. LEE P.O. BOX 1028 RI CHARD T. ANDERSON• JEFFREY V. DUNN HA LEY E. PETERSON JAMES C.TURNEY RIVERSIDE, CAL' 92502-1026 JOHN D.WAHLIN• STEV EN C. DEBAUN ROGER K.CRAWFORD MICHAEL D. DOLIDA JOHN E. BROWN ERIC L. GARNER' SHAWN D. HAGERTY CATIA C. HAGOPIAN TELEPHONE(909)686-1450 MICHAEL T. RIDDELL• DENNIS M. COTA JAMES P. MORRIS LISA N. LE TELECOPIERS MICHAEL GRANT' P.H.W.F. PEARCE KEVIN T. COLLINS LECARIE S.WHITFIELD (009)666-3083 682-461 2 FRANCIS J. BAUM• ROBERTW. HARGREAVES CARYN L. CRAIG KAREN M. FREEMAN WWW.BBKLAW.COM G EORGE M. REYES• C. MICHAEL COWETT DAVID W. NEWMAN JOHN D. HIGGI N BOTHAM WILLIAM W. FLOYD.JR. BRUCE W. BEACH JENNIFER T. BUCKMAN MALATHY SUBRAMANIAN G REGORY L. HARDKE ARLENE PRATER MARIA E. GLESS USI MESHREKY OF COUNSEL KENDALL H. MACVEY MARK A. EASTER GLEN W. PRICE CRAIG M. MARSHALL CHRISTOPHER L. CARPENTER' C LARK H. ALSOP MICHELLE OUELLETTE MARYM ICHAEL McLEOD JEFFREY S. BALLINGER MICHAEL D. HARRIS• DAVID J. ERWIN• KEVIN K. RANDOLPH JAMES R.TOUCHSTONE M.THERESA TOLENTINO MICHAEL J. ANDELS ON' CYNTHIA M. GERMANO STEVEN M. ANDERSON JUDY L.voH ENDE ANNE T.THOMAS• DOUGLAS S. PHILLIPS• MARGUERITE S.STRAND ROBERT L. PATTERSON THERESA E. ANTONUCCI DONALD F.ZIMMER• GREGORY K.WILKINSON KYLE A.SNOW BR AN K. BENARD MELISSA W. WOO CHRIS71NA L. DYER GENE TANAKA JAMES B. GILPIN PAULA C.P. SOUSA VICTOR L. WOLF KIM A. BYRENS LYSA M.SALTZMAN LLIAM IN C.ADAMS DANIEL E. OLIVIER DEAN DERLETH MARCO A. MARTINEZ WILLIAM WOOD IDERMERR L HOWARD B. GOLDS SONIA RUBIO CARVALHO JOHN F.WALSH D. BRIAN REIDER STE PHEN P. DE17SCH JOHN 0. PINKNEY DANIEL G.STEVENSON KIRK W.SMITH JOHN R. ROTTSCHAEFER PIERO C. DALLARDA JEFFRY F. FERRE MARTIN A. MUELLER DWIGHT M. MONTGOMERY DORINE LAWRENCE-HUGHES OFFICES IN J. MICHAEL SUMMEROUR WILLIAM D. DANCING.JR. BRIAN P. HICKEY SCOTT C. SMITH BERNIE L.WILLIAMSON ALISON D.ALPERT RAYMOND BEST(I66 B-1957) RANCHO MIRAGE(760)568-261 1 JACK B. CLARKE,JR. G. HENRY WELLES' JORGE A. MAR71NEZ JAMES H. KRIEGER(191 3-1975) ONTARIO(909)989-8584 BRIAN M. LEWIS• DINA O. HARRIS KRISHAN S. CHOPRA EUGENE BEST(1 893-1 961) SAN DIEGO(61 9)525-1 300 •A PROFESSIONAL CORPORATION File No.23816.00000 March 31, 2000 RECEIVED Gus Duran APR 0 3 2000 Housing and Redevelopment Manager City of Huntington Beach DEPARTECONOMIC DEVELOPMENT NT OF 2000 Main Street Huntington Beach, CA 92648 Re: Ballot Materials for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) Dear Mr. Duran: Enclosed please find the following documents necessary for the April 17, 2000 formation proceedings of the CFD: 1. Ballot Pamphlet and Instructions to Voters 2. Official Ballot 3. Official Ballot Envelope 4. Resolution Establishing CFD This document package should be presented to the Chairman of the City of Huntington Beach Redevelopment Agency prior to the voting.procedures as set forth,in the agenda and script for the meeting. Please note that the official ballot should not be voted until that time. After the ballot is voted, it should be placed in the official ballot envelope and handed to the City Clerk. Note that the certification onthe back of the envelope should be completed as indicated and signed. RVPLB\KSC\559999 Daterrime 04/09/1999 4:09:23 PM City of Huntington Beach Page 1 Office of the City Clerk Records Ref Category Subject Entered Status Document Expires Box ID Label 1020.10 99 12/31/1989 Microfilmed 171 4827 Sewers-1936-1966-1989 (See List File 170.30) 1020.10 99 12/31/1980 Microfilmed 171 4826 Warner Ave. Relief-Sewer-Phase II-Final El#79-2 1980 420.35 101 12/31/1988 Microfilmed 171 4833 Signs-Political 1970-1988 (See List File 170.30) 420.35 101 12/31/1984 Microfilmed 171 4832 Signs Appeals-1974-1984 (See List File 170.30) 420.35 12/31/1988 Microfilmed 171 4831 Special Sign Permit 87-18&87-19 (Code Amendment 87- 15)Appeal to Denial Failed-Rod Wilson/AMC/Wilson Ford- 1988 87-18 (18255 Beach Blvd., w/s Beach, s/Taylor)87-19 (16751 Beach, w/s Beach, n/Terry) 420.35 101 12/31/1989 Microfilmed 171 4830 Sign Appeals 1989 No. 89-1 Applicant: Federal Signs/QRS Location: Great Western Bank- 16141 Beach Boulevard (N/W Corner at Stark Avenue) Daterrime 04/09/1999 4:09:23 PM City of Huntington Beach Page 2 Office of the City Clerk Records Ref Category Subject Entered Status Document Expires Box ID Label 420.35 101 12/31/1987 Microfilmed 171 4829 Sign Appeals 1985-1987 (See List File 170.30) 420.35 101 12/31/1988 Microfilmed 171 4828 Signals&Signs-1975-1988 (See List File 170.30) Total Records Detailed: 8 LAW OFFICES OF BEST BEST & KRIEGER LLP Gus Duran Housing and Redevelopment Manager March 31, 2000 Page 2 Please call with any questions. Very truly yours, Krishan Chopra for BEST BEST & KRIEGER LLP KSC:mfa Enclosures cc: Kim A. Byrens RVPUB\KSC\559999 BEST BEST & KRIEGER LLP A CALIFORNIA LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS ARTHUR L. LITTLEWORTH• BRADLEY E. NEUFELD RICHARD T. EGGER C. MARIO JARAMILLO 3750 UNIVERSITY AVENUE WILLIAM R. OEWOLFE• PETER M. BARMACK DAVID J. HANCOCK JAY J. LEE P.O. BOX 1 028 RICHARD T. ANDERSON• JEFFREY V. DUNN HA LEY E. PETERSON JAMES C.TURNEY RIVERSIDE, CALIFORNIA 92 502-1 02 8 JOHN D.WAHLIN• STEVEN C. DEBAUN ROGER K. CRAWFORD MICHAEL D. DOLIDA JOHN E. BROWN ERIC L. GARNER• SHAWN D. HAGERTY CA71A C. HAGOPIAN TELEPHONE(909)686-1 450 MICHAEL T. RIDD ELL• DENNIS M. COTA DAMES P. MORRIS LISA N. LE TE LE COP IERS MICHAEL GRANT' P.H.W.F. PEARCE KEVIN T. COLLINS LECARIE S. WHITFIELD (909)688-3083 882-461 2 FRANCIS J. BAUM- ROBERT W. HARGREAVES CAR L. CRAIG KAREN M. FREEMAN WWW,BBKLAW.COM GEORGE M. REYES• C. MICHAEL COWETT DAVID W. NEWMAN JOHN D. HIGGINBOTHAM WILLIAM W. FLOYD, JR. BRUCE W. BEACH JENNIFER T. BUCKMAN MALATHY SUBRAMANIAN GREGORY L. HARDKE AR ENE PRATER MARIA E. GLESS USI MESHREKY OF COUNSEL KENDALL H. MACVEY MARK A. EASTER GLEN W. PRICE CRAIG M. MARSHALL CH RISTOPHER L. CARPENTER' C LARK H. ALSOP MICHELLE OUELL ETTE MA RYMICHAEL MCLEOD JEFFREY S. BALLINGER MICHAEL D. HARRIS• DAVID J. ERWIN- KEVIN K. RANDOLPH JAMES R.TOUCHSTONE M.THERESA TOLENT)NO MICHAEL J. ANDELSON- CYNTHIA M. GERMANO STEV EN M. ANDERSON JUDY L.vow ENDE ANNE T.THOMAS• DOUGLAS 5. PHILLIPS• MARGUERITE S. STRAND ROBERT L. PATTERSON THERESA E. ANTONUCCI DONALD F. ZIMMER• GREGORY K. WILKINSON KYLE A. SNOW BRYAN K. BENARD MELISSA W.WOO CHRISTINA L. DYER GENE TANAKA JAMES B. GILPIN PAULA C.P.DE SOUSA FRANKLIN C.ADAMS VICTOR L. WOLF KIM A. BYRENS LYSA M. SALTZMAN WILLIAM WOOD DANIEL E. OLIVIER DEAN DERLETH MARCO A. MARTINEZ D. BRIAN REIDERL IDER HOWARD B. GOLDS SONIA RUBIO CARV ALHO F. KIRK W. SMITH STEPHEN P. DEITS CH JOHN O. PIN KNEY DANI DANIEL G..STEVENSON ENSON JOHN R. ROTTSCHAEFER PIERO C. DALLARDA JEFFRY F. FERRE MARTIN A. MUELLER DWIGHT M. MONTGOMERY DORINE LAWRENCE-HUGHES OFFICES IN J. MICHAEL SUMMEROUR WILLIAM D. DAHLING, JR. BRIAN P. HICKEY SCO C. SMITH BERNIE L. WILLIAMSON ALISON D.ALPERT RAYMOND BEST(I 068-1957) RANCHO MIRAGE(760) 568-261 I TT JACK B. CLARKE,JR. G. HENRY WELLES JORGE A. MAR71NEZ JAMES H. KRIEGER(IQ 13-1975) ONTARIO(909)989-8584 BRIAN M- LEWIS- DINA O. HARRIS KRISHAN S. CHOPRA EUGENE BEST(1 893-1 98 1) SAN DIEGO(519) 525-1 300 •A PROFESSIONAL CORPORATION March 30, 2000 RECEIVED Gus Duran APR 0 3 2000 Housing and Redevelopment Manager City of Huntington Beach DEPARTMENT OF 2000 Main Street ECONOMIC DEVELOPMENT Huntington Beach, CA 92648 Re. City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) Dear Mr. Duran: Enclosed is the original Statement of Engineer with respect to the above-referenced proceeding. Please arrange for the certificate to be in the possession of the City Clerk for the April 17, 2000 council meeting. Please call with any questions. Very truly yours, 44ML `'_ Krishan Chopra for Best Best & Krieger LLP KSC:mfa Enclosure RVPUB\KSC\559637 STATEMENT OF ENGINEER WITH RESPECT TO PROPERTY OWNERSHIP WITHIN CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT),COUNTY OF ORANGE, STATE OF CALIFORNIA I, Pht c k• 40A a registered professional engineer, employed by the engineering firm of Fuscoe Engine-12g, the engineer for the proceedings for the establishment of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California(the "Community Facilities District"), state as follows: (1) . I supervised the preparation of the map of the boundaries of the Community Facilities District. (2) I have reviewed the legal descriptions attached to the policies of title insurance and the preliminary reports, and said legal descriptions describe all of the property located within the boundaries of the Community Facilities District. (3) The approximate gross acreage of property within the Community Facilities District is 15.103 acres. (4) The aggregate net taxable acreage of the property described in the legal descriptions attached to said policies of title insurance and preliminary reports, excluding dedicated street rights-of-way, and which is owned by the owner named therein is as follows: Owner Acreage City of Huntington Beach 15.103 Redevelopment Agency Total 15.103 DATED: 7-.�tl'- , 2000. QAOFESSjO ARMST9 �Z cz Z4�Gf By: LU No.36083 m E)p* .V cP �9 CML �F CALIFax P JANICE M. MITTERMEIER County Executive Officer 4 U N TY CIF : ROSALYN LEVER 2 Registrar of Voters 1 5 3 A N G E Mailing Address: P.O. Box 11298 Santa Ana,California 92711 REGISTRATION & ELECTIONS DEPARTMENT 1300 South Grand Avenue, Bldg. C Santa Ana,California 92705 (714)567-7600 TDD(714) 567-7608 FAX(714) 567-7627 www.oc.ca.gov/election/ March 16, 2000 Ms. Connie Brockway, City Clerk Huntington Beach City Hall 2000 Main Street Huntington Beach, CA 92648 o --a RE: City of Huntington Beach — Community Facilities District No. 2000-1 (Grand Coast Resort) Dear Ms. Brockway: G°�r y � �'YTfr..- This letter is in response to the request of February 1, 2000, for the total reglsler voters in the Community Facilities District Number 2000-1 of the City of Hunt"gtonn Beach. Based on the Boundary map submitted with the request, there are 0 registered voters in the area as of February 29, 2000. Please feel free ontact me with any questions you may have regarding this information. elephone number is (714) 567-7620. ery tru y r , c Don Taylo Assistant Re stray of Voters CC: Krish n Chopra, Best Best & Krieger LLP j o . 3-a Council/Agency Meeting Held: o7-2,2 -OO � ❑Approved ❑ Conditionally Approved ❑ Denied A�p,City Clerk's Signature Council Meeting Date: February 22, 2000 7 Department ID Number. ED 00-09 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS 4 SUBMITTED BY: RAY SILVER, City Administrator a -� PREPARED BY: DAVID C. BIGGS, Director of Economic Development CD—+-�r SUBJECT: Continuation of Public Hearing on the Formation of Community )> Facilities District No. 2000-1 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,AttaA ment(s) Statement of Issue: The formation of the Community Facilities District will have to be delayed for a period of time due to irregularities with the registered voters identified in the proposed Community Facilities District. The Registrar of Voters will have to undertake a mailing in order to be able to clear the voter list to reflect the current situation where there exist no voters on the property other than the Redevelopment Agency as property owner. Funding Source: N/A Recommended Action: Open the Public Hearing and continue the Public Hearing on the formation of the Community Facilities District No. 2000-1 to March 20, 2000. Alternative Action(s): N/A Analysis: The formation of the Community Facilities District will have to be delayed until the Registrar of Voters undertakes a mailing to be able to identify if any voters still reside within the proposed Community Facilities District. This will occur within the next few weeks, at which time the public hearing will be able to be concluded. The date scheduled for its continuation is March 20, 2000. Environmental Status: N/A Attachment(s): None RESOLUTION NO. 2000-36 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DETERMINING THE NECESSITY FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RE- SORT)TO INCUR A BONDED INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,000,000 FOR PROVIDING PUBLIC FACILITIES WITHIN AND FOR THE CONMUNITY FACILITIES DISTRICT AND CALLING A SPECIAL ELECTION FOR THE COMMUNITY FACILITIES DISTRICT ON A PROPOSITION FOR INCURRING SUCH BONDED INDEBTEDNESS WHEREAS, on January 18, 2000, the City Council (the "City Council') of the City of HuntingtonBeach(the"City"),pursuant to the Mello-Roos Community Facilities Act of 1982,as amended, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the "Act"), adopted Resolution No. 2000-6 declaring the necessity for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) of the City of Huntington Beach, County of Orange, State of California(the "Community Facilities District"),to incur a bonded indebtedness for the purpose of providing public facilities which are necessary for the development of the property therein,and scheduling a hearing thereon; and WHEREAS,notice of the hearing was published and mailed as required by law, and on April 17,2000, at the time and place of the hearing as set forth in Resolution No.2000-6 and the notice thereof, the City Council conducted the hearing and afforded all persons interested, including persons owning property within the Community Facilities District, an opportunity to be heard on the proposed authorization to incur bonded indebtedness, and no protests were received;and WHEREAS,on April 17,2000,at the conclusion of the hearing,the City Council adopted the resolution of formation pursuant to Section 53325.1(a)ofthe California Government Code,establishing City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort)of the City of Huntington Beach,County of Orange, State of California;and WHEREAS, the City Council has determined that it is necessary for the Community Facilities District to incur a bonded indebtedness for the purpose of providing public facilities which are necessary to the development of the property therein; NOW,THEREFORE,IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach,the following: RVPUB\KSC1559565 Section 1. Necessi . It is necessary for the Community Facilities District to incur a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 for the purposes of constructing and financing through the sale of bonds the construction,acquisition,famishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as specified in Resolution No. 2000-5,the resolution of intention for the Community Facilities District,which Proceeds from the sale of the bonds of the Community Facilities District may be used to pay costs associated with the acquisition,construction,furnishing and equipping of facilities to benefit the lands within the boundaries of the proposed community facilities district. Section 2. Payment of Bonded Indebtedness. Pursuant to Section 3 of Resolution No. 2000-6, all parcels of taxable property within the Community Facilities District shall be subject to the levy of special taxes to pay the principal of and interest on the bonds thereof which may be issued and sold to finance the design,construction and acquisition of public facilities which are of benefit to all such parcels. Section 3. Amount of Debt; Terms of Bonds. The aggregate principal amount of the bonded indebtedness to be incurred by the Community Facilities District shall not exceed$16,000,000. The maximum term of the bonds shall not exceed 40 years. The maximum annual rate of interest to be paid semiannually on the bonds shall not exceed 12 percent per annum or such other rate as may be the maximum interest rate permitted by law. Section 4. Proposition to be Submitted to Voters. (a) The proposition to be submitted to the voters within the Community Facilities District with respect to the proposed bonded indebtedness shall be as follows: Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred by and for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California,for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the purpose of constructing and financing through the sale of bonds the construction,acquisition,famishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property,and paying costs incidental to the sale of bonds,the formation of the Community Facilities District, and the design, construction, and acquisition of the public facilities,including all costs and estimated costs of construction of the public facilities,acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds, bond discount,interest on any bonds of the Community Facilities District estimated to be 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, costs of obtaining credit ratings, bond insurance premiums,fees for letters of credit or other credit enhancement costs,and printing costs? RVPUBIKSC1559565 -2- Section,K. Elections. The date of the special election with respect to the incurring of the aforementioned bonded indebtedness,at which time the proposition set forth in Section 4 hereof shall be . submitted to the voters of the Community Facilities District is April 17,2000, and that special election is hereby called for that date. The special election shall be consolidated with the special election with respect to the propositions for(i)the levy of special taxes for the payment of the principal of and interest on the bonds of the Community Facilities District,and(ii)establishing an appropriations limit for the Community Facilities District which have also been called for April 17,2000. The consolidated special elections shall be conducted by mail ballot pursuant to applicable provisions of the California Elections Code with respect to mail-ballot elections of cities and specifically Division 4(commencing with Section 4000)of that-Code, insofar as they may be applicable. The official ballots are required to be received by the City Clerk by 7:00 o'clock p.m.on the said date of the election or immediately after the Resolution Calling the Special Election is adopted. If all qualified electors have voted,the election shall be closed. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of April,2000. dk� Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED - a-,!f2 ale A�ea e. & . City A for Director of Economic Development RVPUB%KSC%559565 -3- Res. No. 2000-36 STATE OF CALIFORNIA ) .COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I,.CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said. . City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of April, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-office Clerk of the City Council of the City of Huntington Beach, California L, & CITY OF HUNTINGTON BEACH LOLJ 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK March 28, 2000 Mayor and Members of the City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) Ladies and Gentlemen: Pursuant to Section 53326 of the Government Code, I hereby agree to act as the election official to conduct the special elections within and for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California. Pursuant to said Section 53326, 1 consent to the scheduling and conducting of said special elections on April 17, 2000. Sincerely, City Clerk City of Huntington Beach gIcbmemos/community facilities election-mp.doc (Telephone:714-536.5227) WAIVER OF CERTAIN ELECTION PROCEDURES WITH RESPECT TO LANDOWNER VOTER ELECTIONS WITHIN AND FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA ' The undersigned on behalf of the City of Huntington Beach Redevelopment Agency, a redevelopment agency under the laws of the State ofCalifornia(the"Owner"),hereby certifies to the City of Huntington Beach(the "City"),as follows: 1. Owner is the owner of the parcel(s)of land located within the District described in Exhibit"A" attached hereto and incorporated herein by reference,thereby making Owner an owner of taxable property within the District. 2. The undersigned is authorized and possesses all authority necessary to execute this waiver on behalf of the Owner and to vote on behalf of the Owner in the consolidated special elections to be held within City of Huntington Beach Community Facilities DistrictNo.2000-1(Grand Coast Resort), County of Orange, State of California(the "District"). 3. There are currently no registered voters residing within the territory of the District, and there will not have been 12 persons registered to vote in the District for each of the 90 days preceding the close of the public hearing which is to be conducted by the City Council of the City of Huntington Beach (the "City Council") on April 17,2000. 4. The Owner received mailed notice of said public hearing regarding the establish- ment of the District and the levy of special taxes on taxable property therein to pay the costs of services to be provided within and surrounding the community facilities district. 5. The Owner has received necessary and relevant information from the City regarding the establishment of the District and the levy of the special taxes on taxable property therein,and the City has made available to the Owner adequate opportunity to obtain such information. The Owner has received a copy of Resolution No. 2000-05,adopted by the City Council on January 18,2000,with all exhibits attached thereto,including Exhibit"B",the rate and method of apportionment of special taxes for the District. 6. The undersigned is informed and understands that in order for the District to annually levy special taxes on taxable property within the District to pay the costs of services to be provided within and surrounding the community facilities district, it is necessary that elections be held within the territory of the District on the proposition with respect to the levy of special taxes on taxable property within the District to pay the costs of services to be provided within and surrounding the community facilities RVPUB\KSC\550482 district, and that two-thirds of the votes cast upon said proposition must be in favor thereof. The undersigned is further informed and understands that the City intends to submit to the qualified voters of the District in said elections the propositions of(i) whether a bonded indebtedness in an amount not to exceed $16,000,000 should be incurred by and for the District for the purpose of constructing and financing through the sale of bonds the construction,acquisition,furnishing and equipping of public facilities and paying costs incidental to the sale of bonds and the formation of the District; and(ii)whether special taxes shall be levied annually on taxable property within the District to pay the principal of and interest on the bonds of the District issued and sold to finance the District; and(iii)whether an appropriations limit shall be established for the District in the amount of$1,750,000,and to consolidate the elections on all such propositions. 7. The undersigned is further informed and understands that, pursuant to Section 53326 of the Government Code, elections on such propositions must be held at the next general election or at a special election to be held at least 90 days,but not more than 180 days,following the adoption by the City Council of the resolution of formation establishing the District,which is expected to occur on April 17, 2000, unless such time limits are waived with the unanimous consent of the qualified electors of the District and the concurrence of the City Clerk of the City of Huntington Beach. The Owner desires that the time limits for conducting said elections set forth in said Section 53326 be waived, and that said elections be held on April 17,2000. 8. The Owner waives the time limits set forth in Section 53326 of the Government Code with respect to said elections and consents to the holding of said elections on April 17,2000. The Owner further consents to the holding of said elections less than 10 days after the mailing of a sample ballot to the Owner and absent compliance with other applicable formal notice requirements of the Elections Code. 9. The Owner further waives an impartial analysis by the City Attorney of the City of Huntington Beach of the ballot measures to be contained in the Official Ballot for said elections pursuant to Section 9280 of the Elections Code, and further waives ballot arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive,and 9295 of the Elections Code. 10. The undersigned hereby represents that compliance with the procedural requirements for conducting said elections,including the receipt of ballot arguments and the time limitations which apply in connection with the scheduling and mailing notices of said elections are unnecessary because the undersigned has received information regarding the establishment of the District,the levy of special taxes on taxable property therein to pay the costs of services to be provided within and surrounding the community facilities district to enable him to properly vote the Official Ballot for such special elections on the propositions mentioned in paragraph 6 above. 2 The undersigned certifies that the foregoing is true and correct and that he executed this document on April 17,2000 at Huntington Beach, California. ATTEST: The City of Huntington Beach Redevelopment Agency, a redevelopment agency under the laws of the State of California By: Clerk of the 'n n City of Huntington Beach Title: V " Redevelopment Agency 3 E)GHBIT"A" LEGAL DESCRIPTION OF OWNER'S PROPERTY CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE STATE OF CALIFORNIA City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort),County of Orange,State of California,includes the land situated in the State of California,County of Orange,City of Huntington Beach,described as follows: Lot 1 of Tract No. 15535, Recorded September 14, 1999 in Map Book 790,Pages 44-50,Records of Orange County,California. A-1 RVPUB\KSC\550482 CERTIFICATION I certify that I am an authorized representative of the City of Huntington Beach Redevelopment Agency,a redevelopment agency under the laws of the State of California,the owner of all of the property within the boundaries of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort),County of Orange,State of California,consisting of 15.103 acres,and that as such authorized representative, I am authorized to and have voted the Official Ballot to which this certification is attached. I further certify that in voting said ballot,it was my intent,as well as the intent of the City of Huntington Beach Redevelopment Agency, to vote all votes to which the City of Huntington Beach Redevelopment Agency,is entitled on Propositions A, B and C set forth in said ballot as marked in the voting square opposite each such proposition. I further certify that based on one vote per acre or portion of an acre of land which the City of Huntington Beach Redevelopment Agency,owns within said community facilities district, said owner is entitled to the number of votes shown on said ballot. I certify that this certification was executed on April 17, 2000, at Huntington Beach, California. ATTEST: The City of Huntington Beach Redevelopment Agency, a redevelopment agency under the laws of the State of California BY: City Clerk of the City of Huntington Beach Redevelopment Agency TITLE: Chairman RVPUB\KSC\550357 Page I of 3 OFFICIAL BALLOT SPECIAL ELECTION FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA APRIL 17, 2000 To vote, mark a cross(+)in the voting square after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Huntington Beach and obtain another. PROPOSITION A: Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred by and for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the:purpose of financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of bonds, the formation of the Community Facilities District, and the design, construction, and acquisition of the public facilities, including all costs and esti- mated costs of construction of the public facili- ties, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for The City of Huntington Beach Redevelopment Agency 16 votes RVPUB\KSC\550357 Page 1 of 3 r expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal,fiscal and financial consultant fees,bond and other reserve funds, bond discount, interest on any bonds of the Community Facil- ities District estimated to be due and payable l� 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,costs of obtaining credit ratings, Proposition A] bond insurance premiums, fees for letters of YES credit or other credit enhancement costs, and printing costs? NO PROPOSITION B: Shall special taxes be levied annually on taxable property within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, to pay the principal of and interest on the bonds of the community facilities district issued and sold to finance the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit "B" to Resolution No. adopted by the City The City of Huntington Beach Redevelopment Agency 16 votes RVPUB\KSC\550357 Page 2 of 3 Council of the City of Huntington Beach on [Proposition s1 April 17, 2000? 11 YES CM- I NO PROPOSITION C: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for City of P oposition c1 Huntington Beach Community Facilities YES District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, in the NO amount of$1,750,000? The City of Huntington Beach Redevelopment Agency 16 votes RVPunvsc\550357 Page 3 of 3 RESOLUTION NO. 2000-37 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH CALLING A SPECIAL ELECTION AND SUBMITTING TO THE VOTERS OF CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT)A PROPOSITION TO INCUR A BONDED INDEBTEDNESS,A PROPOSITION WITH RESPECT TO THE ANNUAL LEVY OF SPECIAL TAXES WITHIN THE COMI UNITY FACILITIES DISTRICT TO PAY PRNCIPAL OF AND INTEREST ON BONDS THEREOF AND A PROPOSITION WITH RESPECT TO THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT FOR THE COMMUNITY FACILITIES DISTRICT WHEREAS, pursuant to Section 53325.1 of the California Government Code the City Council (the "City Council") of the City of Huntington Beach ("City") has adopted the Resolution of Formation of City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort), County of Orange, State of California(the "Community Facilities District"), establishing the Community Facilities District and the boundaries thereof(the"Resolution of Formation');and WHEREAS, pursuant to Section 53351 of the California Government Code, the City Council has also adopted a resolution determining that it is necessary that the Community Facilities District incur a bonded indebtedness in an amount not to exceed $16,000,000 which together with other funds available to City will be used to finance the construction, acquisition, furnishing and equipping of certain public facilities for the Community Facilities District;and WHEREAS,pursuant to Section 53326 ofthe California Government Code,it is necessary that the City Council submit to the voters of the Community Facilities District the annual levy of special taxes on taxable property within the Community Facilities District to pay the principal of and interest on the bonds thereof,if such bonds are authorized and issued; and WHEREAS,pursuant to Section 53325.7 of the California Government Code,the City Council may also submit to the voters of the Community Facilities District a proposition for the establishment of an appropriations limit for the Community Facilities District; NOW, THEREFORE,IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach,the following: Section 1. Findings. The City Council finds that: (i)the foregoing recitals are true and correct; (ii) 12 persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the protest hearing on April 17,2000;(iii)pursuant RVPUB\KAB\507601 to Section 53326 of the California Government Code as a result of the findings set forth in clause(ii)above, the vote in the special election called by this resolution shall be by the landowners of the Community Facilities District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the Community Facilities District which would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the landowners of the Community Facilities District have by unanimous written consent (a) waived the time limits set forth in Section 53326 of the California Government Code for holding the election called by this resolution and the election on the proposition of the Community Facilities District incurring a bonded indebtedness,which pursuant to Section 4 hereof is consolidated with the election called hereby, (b) consented to the holding of the consolidated special elections on April 17,2000, (c)waived notice and mailed notice of the time and date of the consolidated special elections, (d)waived an impartial analysis by Counsel to City ofthe ballot propositions pursuant to Section 9280 of the California Elections Code and arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, and mailing of a statement pursuant to Section 9401 of that Code, and (e) waived a synopsis of the measures to be included in the official ballot for said elections pursuant to Section 12114 of that Code; and(v)the Clerk(the "Clerk")has consented to the holding of the consolidated special elections on April 17,2000. Section 2. Determinations. The City Council hereby finds that, pursuant to Sections 3.56.070(i) and 3.56.040 of the City's Special Tax Financing Improvement Code, in order to carry out the purposes of such Code,and in order for the City and City of Huntington Beach Redevelopment Agency C Agency') to carry out their respective purposes, it is necessary and convenient to determine that the Agency is a public agency landowner subject to a special tax. Section 3. Procedures in Connection with Special Tax. The City hereby finds that, pursuant to Section 3.56.070(i) of the City Special Tax Financing Improvement Code,the Agency,as fee title owner or leaseholder of any land within the District is considered a public agency landowner and,as such, is entitled to cast votes based on such possessory interest in land located within the District for the special election proceedings scheduled to take place in connection with the formation of the District,and is subject to the levy and collection of special taxes and potential foreclosure proceedings in connection therewith Section 4. Call of Election The City Council hereby calls and schedules a special election for April 17, 2000 on the proposition of the annual levy of special taxes within the Community Facilities District for the provision of public facilities for the Community Facilities District and for the payment of principal of and interest on the bonds of the Community Facilities District, and on the proposition of the establishment of an appropriations limit for the Community Facilities District. Section 5. Propositions. The propositions to be submitted to the voters ofthe Community Facilities District at such special election shall be as follows: -2- RVPUB\KAB\507601 First Proposition Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred.by and for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort),County of Orange, State of California,for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum,or such other rate as may be the maximum interest rate permitted by law, for the purpose of constructing and financing through the sale of bonds the construction,acquisition,furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property,and paying costs incidental to the sale of bonds,the formation of the Community Facilities District, and the design, construction, and acquisition of the public facilities, including all costs and estimated costs of construction of the public facilities,acquisition of land and rights-of-way,satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued,architectural, engineering,inspection,legal,fiscal and financial consultant fees,bond and other reserve funds,bond discount,interest on any bonds of the Community Facilities District estimated to be 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,costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit or other credit enhancement costs,and printing costs? Second Proposition Shall special taxes be levied annually on taxable property within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State ofCalifornia,to pay the principal of and interest on the bonds of the community facilities district issued and sold to finance the construction, acquisition, finishing and equipping ofpublic facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and costs . incidental thereto,to replenish the reserve fund for the bonds,or to accumulate funds for future bond payments,including any amount required by federal law to be rebated to the United States with regard to the bonds,and to pay expenses incidental thereto and to the levy and collection of the special taxes,so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes,at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit 'B" to Resolution No.),Pco-33adopted by the City Council of the City of Huntington Beach on April 17,2000? -3- RVPUB\KAB\507601 Third Proposition Shall an appropriations limit,as defined by subdivision(h)of Section 8 of Article )III B of the California Constitution, be established for City of Huntington Beach Community Facilities District No.2000-1 (Grand Coast Resort),County of Orange,State of California,in the amount of$1,750,000? Section 4. Consolidation of Elections. The special election called hereby on the propo- sitions to be submitted to the voters of the Community Facilities District, as set forth in Section 3 hereof, shall be consolidated with the election on the proposition for the incurring of a bonded indebtedness for the Community Facilities District.The ballot for said consolidated elections shall be in the form attached hereto as Exhibit"A." Section 5. Conduct of Election Except as otherwise provided in Section 6 hereof,the consolidated special elections shall be conducted by the Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000)of that Code,insofar as they may be applicable. Section 6. Election Procedures. The procedures to be followed in conducting the consolidated special elections on(i)the proposition of the Community Facilities District incurring a bonded indebtedness in an amount not to exceed$16,000,000(ii)the proposition with respect to the levy of special taxes on the land within the Community Facilities District to pay the principal of and interest on the bonds thereof, and (iii) the proposition with respect to the establishment of an appropriations limit for the Community Facilities District in the amount of$1,750,000(the"Consolidated Special Elections")shall be as follows: (a) Pursuant to Section 53326 of the California Government Code, ballots for the Consolidated Special Elections shall be distributed to the qualified electors by the Clerk by mail with return postage prepaid. (b) Pursuant to applicable sections of the Califomia Elections Code governing the conduct of mail ballot elections,and in particular Division 4 (commencing with Section 4000) of that Code with respect to elections conducted by mail,the Clerk shall mail to each qualified elector an official ballot in the form attached hereto as Exhibit"A,"and shall also mail to all such qualified electors a ballot pamphlet and instructions to voter,including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage thereon addressed to the Clerk for the return of voted official ballots,and a copy of the Resolution of Formation and the exhibits thereto. (c) The official ballot to be mailed by the Clerk to each landowner shall have printed or typed thereon the name of the landowner and the number of votes to be voted by the landowner and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, -4- RVPUB\KAB\507601 and if the landowner is other than a natural person,that he or she is an officer of or other person affiliated with the landowner entitled to vote such official ballot,that he or she has been authorized to vote such official ballot on behalf of the landowner,that in voting such official ballot it was his or her intent, as well as the intent of the landowner, to vote all votes to which the landowner is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition,and further certifying as to the acreage of the landowner's land ownership within the Community Facilities District. (d) The return identification envelope delivered by the Clerk to eachlandowner shall have printed or typed thereon the following: (i)the name of the landowner,(ii)the address of the landowner, (ii.i) a declaration under penalty ofperjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter,(v)the address of the voter,(vi)the date of signing and place of execution of the declaration, and(vii)a notice that the envelope contains an official ballot and is to be opened only by the Clerk. (e) The information to voter form to be mailed by the Clerk to the landowners shall inform them that the official ballots shall be returned to the Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 7:00 p.m. on the date of the election, or immediately after the Resolution Calling the Special Election has been adopted. (fj Upon receipt ofthe return identification envelopes which are returned prior to the voting deadline on the date of the elections, the Clerk shall canvass the votes cast in the Consolidated Special Elections,and shall file a statement with the City Council at its next regular meeting as to the results of such canvass and the election on each proposition set forth in the official ballot. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of April,2000. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: Ir]ITI TED AND APPROVED 62�!= L44-:4__� 1*4 C //,/w City Add&strator Director of Economic Development -5- RVPUB\KAB\507601 EXHIBIT "A" OFFICIAL BALLOT SPECIAL ELECTION FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA APRIL 17, 2000 To vote, mark a cross(+)in the voting square after the word"YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot,return it to the City Clerk of the City of Huntington Beach and obtain another. PROPOSITION A: Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred by and for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the purpose of financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of bonds, the formation of the Community Facilities District, and the design, construction, and acquisition of the public facilities, including all costs and esti- mated costs of construction ofthe public facili- ties, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for The City of Huntington Beach Redevelopment Agency. 16 votes RVPuB\Kscl550357 Page 1 of 3 CERTIFICATION I certify that I am an authorized representative of the City of Huntington Beach Redevelopment Agency;a redevelopment agency under the laws ofthe State of California,the owner. . of all of the property within the boundaries of Gity ofHuntington Beach Comm nrty Facilities District No.2000-1 (Grand Coast Resort), County of Orange, State of California,consisting of 15.103 acres, and that as such authorized representative, I am authorized to and have voted the Official Ballot to which this certification is attached. I further certify that in voting said ballot,it was my intent,as well as the intent of the City of Huntington Beach Redevelopment Agency,to vote all votes to which the City of Huntington Beach Redevelopment Agency, is entitled on Propositions A, B and C set forth in said ballot as marked in the voting square opposite each such proposition. I further certify that based on one vote per acre or portion of an acre of land which the City of Huntington Beach Redevelopment Agency, owns within said community facilities district, said owner is entitled to the number of votes shown on said ballot. I certify that this certification was executed on April 17, 2000, at Huntington Beach, California. The City of Huntington Beach Redevelopment Agency, " a redevelopment agency under the laws of the State ,.. :of California. . . BY: TITLE: Chairman RVPUs\Icscl550357 Pagel of 3 expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal,fiscal and financial consultant fees,bond and other reserve funds, bond discount, interest on any bonds of the Community Facil- ities District estimated to be 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,costs of obtaining credit ratings, [Proposition A] bond insurance premiums, fees for letters of YES credit or other credit enhancement costs, and printing costs? NO PROPOSITION B: Shall special taxes be levied annually on taxable property within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, to pay the principal of and interest on the bonds of the community facilities district issued and sold to finance the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so long as the special taxes are needed to pay the principal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit "B" to Resolution No.;?AV--36 adopted by the City The City of Huntington Beach Redevelopment Agency 16 votes RVPUBUCS05so357 Page 2 of 3 Y Council of the City of Huntington Beach on [Proposition 6] April 17, 2000? YES NO PROPOSITION C: Shall. an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for City of [Proposition c1 Huntington Beach Community Facilities YES District No. 2000-1 (Grand Coast Resort), County of Orange, State of California, in the NO amount of$1,750,000? The City of Huntington Beach Redevelopment Agency 16 votes RVPus\cSC\550357 Page 3 of 3 Res. No. 2000-37 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and'ex-officio Clerk of the City Council of said . City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of April, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-offici Clerk of the City Council of the City of Huntington Beach, California NOTICE OF ADOPTION BY TIIE'CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH OF A RESOLUTION DETERMINING THE NECESSITY FOR _PROPOSED CITY .OF HUNTINGTON,.BEACH ` COMMUNITY FACILITIES DISTRICT NO. 20004 (GRAND COAST RESORT) TO INCUR BONDED INDEBTEDNESS; IN.AN AGGREGATE, RRINCIPAL AMOUNT NOT TO EXCEED $16,000,000 FOR PROVIDING PUBLIC'FACILITIES WITHIN AND FOR THE COMMUNITY FACILITIES DISTRICT, AND CALLING A SPECIAL ELECTION FOR THE COMMUNITY FACILITIES DISTRICT ON THE PROPOSITION FOR " INCURRING SUCH BONDED INDEBTEDNESS FOR FEBRUARY 22,2000. NOTICE IS HEREBY GIVEN that on January 18,2000,the City Council of the City of Huntington Beach adopted,a resolution determining the necessity for the proposed City of PROOF OF P U B LI CATi O N Huntington Beach Community Facilities.District No. 2000-1 (Grand Coast Resort),of the County of Orange,State of California(the"District"),to incur a bonded indebtedness in an amount not to exceed$16,000,000 for providing public facilities within and for the District and calling a special election,for the community facilities district on the proposition of the District STATE OF CALIFORNIA) incurring such bonded indebtedness for February 22,2000. The resolution determining necessity to incur bonded indebtedness provides in summary as S S. follows: 1. It is necessary for the District to incur a bonded indebtedness in an aggregate principal County of Orange ) amount not to exceed$16,000,000 for the purpose of providing the public facilities specified in Resolution No.2000-5,the resolution of intention for the District. 2. All parcels of property within the District shall be subject to the levy of special taxes to pay the principal of and interest on the bonds thereof which may be issued and sold to finance I am a Citizen of the United States and the design,construction and acquisition of public facilities which are of benefit to all such resident of the County aforesaid• I ar1 parcels. 3. The aggregate principal amount of the bonded indebtedness to be incurred by the District over the age of eighteen years, and not - (Continued mfiext page) -- party to or interested in the belo — — - — pa9e) shall not --- entitled matter. i am a principal clerk o (continuednetted xceedspreceding516,000,000.7'he maximum term of the bonds shall not exceed 40 years.The the H U N T I N GTO N BEACH INDEPENDENT, maximum annual rate of interest to be paid semiannually on the bonds shall not exceed 12 percent per antrum or such other rate as may be the maximum interest rate permitted by law. newspa er of gtneral circulation, pri me 4. Ile proposition to be submitted to the voters within the Community FaVaities District with respect to the proposed bonded indebtedness is as follows: and p u l i s h e d in the City of H u n t i n gto Shall a bonded indebtedness in an aggregate principal amount not to exceed$16,0W W0 be Beach! CO u n of Orange, State o incurred by and for Community-Facilities District No.2000-1(Grad Coast Resort)of ! the City of Huntington Beath,County of Orange.State of California,for a maximum California, and that attached Notice i s term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum,or such other rate as may be the maximum interest rate permitted by true and complete copy as was printec law, for the purpose of constructing and financing through the sale of bonds the and published in the Huntington Bear construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon.the City as a result of the and Fountain Valley issues of saic development of said real property,and paying costs incidental to the sale of bonds,the formation of the community facilities district, and the design, construction,and i newspaper to wit the issue(s) of: acquisition of the public facilities, including all costs and estimated costs of construction of the public facilities,acquisition of land and rights-of-way,satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing'at the time the bonds are issued,architectural,engineering.inspection,legal, i fiscal and financial consultant fees, bond and other reserve funds, bond discount; interest on any bonds of the community facilities district estimated to be due and February 10, 2 O O O 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,costs of obtaining credit ratings,bond insurance premiums,fees for letters of credit or other. credit enhancement costs,and printing costs. 5. The date of the special election with respect to the District incurring the aforementioned bonded indebtedness,at which time the aforementioned proposition will be submitted to the I declare, under penalty of perjury, t h a voters of the District is February 22,2000..The special election shaft be consolidated with the the foregoing is true and correct. special election with respect to the propositions for(i)the levy of special taxes for the payment of the principal and interest on the bonds of the Community Facilities District, and 00 establishing an appropriations limit for the Community Facilities District which have also been called for February 22,2000.The consolidated special elections shall be conducted by mail Executed on February 10 2 0 0 0 ballot.If all qualified electors have voted,the election shall be closed , 6. A copy of the resolution determining the necessity to incur bonded indebtedness may be at Costa Mesa, California. reviewed or obtained at the Office of the City Clerk of the City of Huntington Beach, Huntington Beach Civic Center, 2000 Main Street, Second Floor, Huntington Beach, California,92648. DATED:January 27,2000 /st Connie Brockway City Clerk Published Huntington Beach-Fountain Valley Independent February 10,2000 022-694 Signature Am NOTICE OF HEARING ON RESOLUTION OF INTENTION TO ESTABLISH PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) NOTICE IS HEREBY GIVEN that on January 18, 2000, the City Council of the City of Huntington Beach adopted Resolution No._2000-5, the resolution of intention with respect to the establishment of proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), of the County of Orange, State of California, and that a public hearing on said resolution of intention and with respect to the establishment of said community facilities district will be held at 7:00 p.m.(or as soon thereafter as possible) on February 22, 2000, in the City Council Chambers of the Huntington Beach Civic Center located at 2000 Main Street, Huntington Beach, California. Resolution No. 2000-5 adopted on January 18, 2000, provides in summary as follows: 1. The name proposed for the community facilities district is "City .of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) of the County of Orange, State of California". 2. The boundaries of the proposed community facilities district are shown on the map entitled 'Boundaries of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) of the County of Orange, State of California", which is on file with the City Clerk of the City of Huntington Beach. That map is approved and the City Clerk shall file the original of said map in her office, and not later than 15 days prior to the date of the public hearing shall record a copy of said boundary map with the County Recorder of the County of Orange. 3. The types of public services proposed to be provided for and financed by the proposed community facilities district are the costs of maintenance for the purposes of constructing and financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property. Proceeds from the sale of the bonds of the proposed community facilities district may be used to pay costs associated with the construction, acquisition, furnishing and equipping of facilities to benefit the lands within the boundaries of the proposed community facilities district. 4. Special taxes sufficient to pay for all such facilities and to pay the principal of and interest on the bonds of the proposed community facilities -district and other incidental expenses shall be annually levied within the proposed community facilities district. The maximum amounts of special taxes which may be annually levied are as follows: ANNUAL MAXIMUM SPECIAL TAX. As of any Interest Payment Date, the Maximum Special Tax for leasehold interests in Taxable Property in CFD No. 2000-1 shall.be the greater of(1) $130,000 per Acre of Taxable Property pursuant to which such leasehold interest pertains, or (2) the amount determined pursuant to the following steps, but not to exceed in any event the Special Tax Requirement applicable for any Fiscal Year: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.11 and all the Administrative Expenses to determine the maximum potential Special Tax Requirement for Bonds; Step 3: Determine the Acreage of Taxable Property within the CFD; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Fixed Rate Special Tax per Acre of Taxable Property in the CFD. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in Exhibit "B" to Resolution No. 2000-5. RVPUB\KSC\547602 2 ` C t METHOD OF APPORTIONMENT OF THE SPECIAL TAX. At least twelve business days prior to an Interest Payment Date, the Administrator shall determine or cause to be determined the Special Tax Requirement for the Interest Payment Date. The Special Tax shall then be levied proportionately per Acre on the leasehold interest in each Assessor's Parcel of Taxable Property up to 100% of the Maximum Special Tax for Taxable Property, as determined by reference to the Annual Maximum Special Tax calculation steps set forth above and in Section C to Exhibit `B" of Resolution No. 2000-5, until the amount levied is equal to the Special Tax Requirement due on the Interest Payment Date. 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. 2000-1 may directly bill the Special Tax and may collect Special Taxes at a different time or manner if necessary to meet it's financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Mello Roos Community Facilities Act of 1982. 5. A public hearing on the establishment of the proposed community facilities district shall be held at 7:00 p.m. on February 22, 2000 in the City Council Chambers of the Civic Center of the City of Huntington Beach located at 2000 Main Street, Huntington Beach, California. 6. The City Clerk shall publish a notice of the time and place of said hearing and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed community facilities district. Said notice shall be published at least seven (7) days and mailed at least 15 days before the date of the hearing. 7. At or before the time of said hearing, a report or-reports shall be prepared RVPUBUCSC\547602 3 and filed with the City Council containing a brief description of the public facilities by type which will in their opinion be required to adequately meet the needs of the proposed community facilities district and their estimate of the fair and reasonable cost of providing those public facilities and the incidental expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing. 8. The consolidated special elections on (i) the proposition of the proposed community facilities district incurring a bonded indebtedness in an amount not to exceed $16,000,000, (ii) the proposition with respect to the levy of special taxes on the land within the community facilities district to pay the principal of and interest on the bonds thereof, and (iii) the proposition with respect to the establishment of an appropriations limit for the community facilities-district in the amount of $1,750,000 if the community facilities district is established and such consolidated special elections are held, shall be conducted as a mail ballot election. If at least 12 persons have been registered to vote within the territory of the community facilities district for each of the 90 days preceding the close of the public or protest hearing, the vote in the consolidated special elections shall be by the registered voters of the community facilities district, with each voter having one vote. In that event, the consolidated special elections shall be conducted by the Registrar of Voters of the County of Orange and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the consolidated special elections shall be distributed to the qualified electors of the community facilities district by mail with return postage prepaid and the consolidated special elections shall be conducted as a mail ballot election. If 12 persons have not been registered to. vote within the territory of the proposed community facilities district for each of the 90 days preceding the close of the protest hearing, the vote shall be by the landowners of the community facilities district, with each landowner of record at the close of the protest hearing having one RVPUB\KSC\547602 4 vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district. In that event, the consolidated special elections shall be conducted by the City Clerk as specified in Resolution No. 2000-5 and applicable sections of the California Elections Code. In that event, the ballots for the consolidated special elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. The City Clerk shall mail to each qualified elector an official ballot, and shall also mail to all such qualified electors other required election documents, including a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots. The instruction to voter form to be mailed by the City Clerk to the landowner- voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted on the date of the election. Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. Resolution No. 2000-5 contains other provisions which are not summarized above. A copy of Resolution No: 2000-5 may be reviewed or obtained at the office of the City Clerk of the City of Huntington Beach in the Civic Center located at 2000 Main Street, Second Floor,Huntington Beach, California. NOTICE IS FURTHER GIVEN that at the hearing the testimony of all interested persons or taxpayers for or against the establishment of the community facilities district, or the furnishing of specified types of public facilities will be heard. If 50 percent or more of the registered voters, RVPUB\KSC\547602 5 or six registered voters, whichever is more, residing within the territory proposed to be included in the proposed community facilities district and not exempt from the levy of special taxes, or the owners of one-half or more of the area of the land in said territory, file written protests against the establishment of the proposed community facilities district, and protests are not withdrawn so as to reduce the value of the protest to less than a majority,:no further proceedings to create the community facilities district or to levy the specified special taxes shall be taken for a period of one year from the date of the decision of the City Council. If majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of public facilities within the community facilities district, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated from the resolution of formation establishing the community facilities district. DATED: ---------------- ----------------c��-------- Connie Brockway City Clerk of the City of Huntington Beach RVPUBUCSC\547602 6 i NOTICE OF ADOPTION BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH OF A RESOLUTION DETERMINING THE NECESSITY FOR PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) TO INCUR BONDED INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,000,000 FOR PROVIDING PUBLIC FACILITIES WITHIN AND FOR THE CONIlVIUNITY FACILITIES DISTRICT, AND CALLING A SPECIAL ELECTION FOR THE COMMUNITY FACILITIES DISTRICT ON THE PROPOSITION FOR INCURRING SUCH BONDED INDEBTEDNESS FOR FEBRUARY 22, 2000 NOTICE IS HEREBY GIVEN that on January 18, 2000, the City Council-of the City of Huntington Beach adopted a resolution determining the necessity for the proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), of the County of Orange, State of California (the 'District"), to incur a bonded indebtedness in an amount not to exceed $16,000,000 for providing public facilities within and for the District and calling a special election for the community facilities district on the proposition of the District incurring such bonded indebtedness for February 22, 2000. The resolution determining necessity to incur bonded indebtedness provides in summary as follows: 1. It is necessary for the District to incur a bonded indebtedness in an. aggregate principal amount not to exceed $16,000,000 for the purpose of providing the. public facilities specified in Resolution No. 2000-5, the resolution of intention for the District. 2. All parcels of property within the District shall be subject to the levy of special taxes to pay the principal of and interest on the bonds thereof which may be issued and sold to finance the design, construction and acquisition of public facilities which are of benefit to all such parcels. 3. The aggregate principal amount of the bonded indebtedness to be incurred by the District shall not exceed $16,000,000. The maximum term of the bonds shall not exceed 40 years. The maximum annual rate of interest to be paid semiannually on the bonds shall not exceed 12 percent per annum or such other rate as may be the maximum interest rate permitted by law. 4. The proposition to be submitted to the voters within the Community Facilities District with respect to the proposed bonded indebtedness is as follows: Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred by and for Community Facilities District No. 2000-1 (Grand Coast Resort) of the City of Huntington Beach, County of Orange, State of California, for a maximum term of not more than -40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the purpose of constructing and financing through the sale of bonds the construction, acquisition, .furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of bonds, the formation of the community facilities district, and the design, construction, and acquisition of the public facilities, including all costs and estimated costs of construction of the public facilities, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds, bond discount, interest on any bonds of the community facilities district estimated to be 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, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit or other credit enhancement costs, and printing costs. 5. The date of the special election with respect to the District incurring the aforementioned bonded indebtedness, at which time the aforementioned proposition will be submitted to the voters of the District is February 22, 2000. The special election shall be consolidated with the special election with respect to the propositions for (i) the levy of special taxes for the payment of the principal and interest on the bonds of the Community Facilities District, and (ii) establishing an appropriations limit for the Community Facilities District which have also been called for February 22, 2000. The consolidated special elections shall be conducted by mail ballot. If all qualified electors have voted, the election shall be closed. 6. A copy of the resolution determining the necessity to incur bonded indebtedness may be reviewed or obtained at the office of the City Clerk of the.City of Huntington Beach, Huntington Beach Civic _Center, 2000 Main Street, Second Floor, Huntington Beach, California, 92648. DATED: 9 j govo Connie Brockway, City Clerk of the City of Huntington Beach PUBLISH: February 10, 2000 MAIL TO PROPERTY OWNER(S): February 4, 2000 � F RVPUBMS3547627 consolidated special elections shall be conducted by mail ballot. If all qualified electors have voted, the election shall be closed. 6. A copy of the resolution determining the necessity to incur bonded indebtedness may be reviewed or obtained at the office of the City Clerk of the City of Huntington Beach, Huntington Beach Civic Center, 2000 Main Street, Second Floor, Huntington Beach, California, 92648. DATED: �u ;27z P-0c Connie Brockway, City Clerk of the City of Huntington Beach PUBLISH: February 10, 2000 MAIL TO PROPERTY OWNER(S): February 4, 2000 a i RVPUB\KSC\547627 NOTICE OF HEARING ON RESOLUTION OF INTENTION TO ESTABLISH PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) NOTICE IS HEREBY GIVEN that on January 18, 2000, the City Council of the qj�y iP Huntington Beach adopted Resolution No. 2000-5, the resolution of intention with respect to the establishment of proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), of the County of Orange, State of California, and that a public hearing on said resolution of intention and with respect to the establishment of said community facilities district will be held at 7:00 p.m.(or as soon thereafter as possible) on February 22, 2000, in the City Council Chambers of the Huntington Beach Civic Center located at 2000 Main Street, Huntington Beach, California. Resolution No. 2000-5 adopted on January 18, 2000, provides in summary as follows: 1. The name proposed for the community facilities district is "City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) of the County of Orange,State of California". 2. The boundaries of the proposed community facilities district are shown on the map entitled 'Boundaries of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) of the County of Orange, State of California", which is on file with the City Clerk of the City of Huntington Beach. That map is approved and the City Clerk shall file the original of said map in her office, and not later than 15 days prior to the date of the public hearing shall record a copy of said boundary map with the County Recorder of the County of Orange. 3. The types of public services proposed to be provided for and financed by the proposed community facilities district are the costs of maintenance for the purposes of constructing and financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the t , City as a result of the development of said real property. Proceeds from the sale of the bonds of the proposed community facilities district may be used to pay costs associated with the construction, acquisition, furnishing and equipping of facilities to benefit the lands within the boundaries of the proposed community facilities district. 4. Special taxes sufficient to pay for all such facilities and to pay the principal of and interest on the bonds of the proposed community facilities district and other incidental expenses shall be annually levied within the proposed community facilities district. The maximum amounts of special taxes which may be annually levied are as follows: ANNUAL MAXIMUM SPECIAL TAX. _ As of any Interest Payment Date, the Maximum Special Tax for leasehold interests in Taxable Property in CFD No. 2000-1 shall be the greater of(1) $130,000 per Acre of Taxable Property pursuant to which such leasehold interest pertains, or (2) the amount determined pursuant to the following steps, but not to exceed in any event the Special Tax Requirement applicable for any Fiscal Year: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.11 and all the Administrative Expenses to determine the maximum potential Special Tax Requirement for Bonds; Step 3: Determine the Acreage of Taxable Property within the CFD; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Fixed Rate Special Tax per Acre of Taxable Property in the CFD. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in Exhibit "B" to Resolution No. 2000-5. RVPUMKSC�547602 2 METHOD OF APPORTIONMENT OF THE SPECIAL TAX. At least twelve business days prior to an Interest Payment Date, the Administrator shall determine or cause to be determined the Special Tax Requirement for the Interest Payment Date. The Special Tax shall then be levied proportionately per Acre on the leasehold interest in each Assessor's Parcel of Taxable Property up to 100% of the Maximum Special Tax for Taxable Property, as determined by reference to the Annual Maximum Special Tax calculation steps set forth above and in Section C to Exhibit `B" of Resolution No. 2000-5, until the amount levied is equal to the Special Tax Requirement due on the Interest Payment Date. 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. 2000-1 may directly bill the Special Tax and may collect Special Taxes at a different time or manner if necessary to meet it's financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Mello Roos Community Facilities Act of 1982. 5. A public hearing on the establishment of the proposed community facilities district shall be held at 7:00 p.m. on February 22, 2000 in the City Council Chambers of the Civic Center of the City of Huntington Beach located at 2000 Main Street, Huntington Beach, California. 6. The City Clerk shall publish a notice of the time and place of said hearing and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed community facilities district. Said notice shall be published at least seven (7) days and mailed at least 15 days before the date of the hearing. 7. At or before the time of said hearing, a report or reports shall be prepared RVPUBUCSC1547602 3 and filed with the City Council containing a brief description of the public facilities by type which will in their opinion be required to adequately meet the needs of the proposed community facilities district and their estimate of the fair and reasonable cost of providing .those public facilities and the incidental expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing. 8. The consolidated special elections on (i).the proposition of the proposed community facilities district incurring a bonded indebtedness in an amount not to exceed $16,000,000, (ii) the proposition with respect to the levy of special taxes on the land within the community facilities district to pay the principal of and interest on the bonds thereof, and (iii) the proposition with respect to the establishment of an appropriations limit for the community facilities district in the amount of $1,750,000 if the community facilities district is established and such consolidated special elections are held, shall be conducted as a mail ballot election. If at least 12 persons have been registered to vote within the territory of the community facilities district for each of the 90 days preceding the close of the public or protest hearing, the vote in the consolidated special elections shall be by the registered voters of the community facilities district, with each voter having one vote. In that event, the consolidated special elections shall be conducted by the Registrar of Voters of the County of Orange and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the consolidated special elections shall be distributed to the qualified electors of the community facilities district by mail with return postage prepaid and the consolidated special elections shall be conducted as a mail ballot election. If 12 persons have not been registered to vote within the territory of the proposed community facilities district for each of the 90 days preceding the close of the protest hearing, the vote shall be by the landowners of the community facilities district, with each landowner of record at the close of the protest hearing having one RVPUB\KSC\547602 4 4 vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district. In that event, the consolidated special elections shall be conducted by the City Clerk as.specified in Resolution No. 2000-5 and applicable sections of the California Elections Code. In that event, the ballots for the consolidated special elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. The City Clerk shall mail to each qualified elector an official ballot, and shall also mail to all such qualified electors other required election documents, including a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots. The instruction to voter form to be mailed by the City Clerk to the landowner- voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted on the date of the election. Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. Resolution No. 2000-5 contains other provisions which are not summarized above. A copy of Resolution No. 2000-5 may be reviewed or obtained at the office of the City Clerk of the City of Huntington Beach in the Civic Center located at 2000 Main Street, Second Floor, Huntington Beach, California. NOTICE IS FURTHER GIVEN that at the hearing the testimony of all interested persons or taxpayers for or against the establishment of the community facilities district, or the furnishing of specified types of public facilities will be heard. If 50 percent or more of the registered voters, RVPUBVCSCl547602 5 a or six registered voters, whichever is more, residing within the territory proposed to be included in the proposed community facilities district and not exempt from the levy of special taxes, or the owners of one-half or more of the area of the land in said territory, file written protests against the establishment of the proposed.community facilities district, and protests are not withdrawn so as to reduce the value of the protest to less than a majority, no further proceedings to create the community facilities district or to levy the specified special taxes shall be taken for a period of one year from the date of the decision of the City Council. If majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of public facilities within the community facilities district, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated from the resolution of formation establishing the community facilities district. DATED: ? a � v ---------------- ---------------- ------ Connie Brockway City Clerk of the City of Huntington Beach RVPUB\KSC\547602 6 BEST BEST & KRIEGER LLP A CALIFORNIA LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS A RTHUR L. LITTLEWORTH' BRADLEY E. NEUFELD RICHARD T. EGGER C. MARIO JARAMILLO 3750 UNIVERSITY AVENUE WILLIAM R. DEWOLFE' PETER M. BARMACK DAVID J. HANCOCK JAY J. LEE P.O. BOX 1 028 RICHARD T. ANDERSON' JEFFREY V. DUNN HAYLEY E. PETERS ON JAMES C.TURNEY RIVERSIDE, CALIFORNIA 9 2 502-1 02 8 JOHN D WAHLIN' STEVEN C. DEBAUN ROGER K. CRAWFORD MICHAEL D. DOLIDA JOHN E..BROWN ERIC L. GARNER' SHAWN D. HAGERTY CATIA C. HAGOPIAN TELEPHONE(909)686-1 450 MICHAEL T. RIDDELL' DENNIS M. COTA JAMES P. MORRIS LISA N. LE TELECOPIERS MICHAEL GRANT- P.H.W.F. PEARCE KEVIN T. COLLI NS LCCARIE S.WH17FIELD (909)G85-3083 882-481 2 FRANCIS J. BAUM' ROB ERT W. HARGREAVES CAR L. CRAIG KAREN M. FREEMAN WWW.BBKLAW.COM G EORGE M. REYES,' C. MICHAEL COWETT DAVID W. NEWMAN JOHN D. HIGGINBOTHAM WILLIAM W. FLOYD,JR. BRUCE W. BEACH JENNIFER T. BUCKMAN MALATHY SUBRAMANIAN GREGORY L. HARDKE ARLENE PRATER MARIA E. GLESS USI MESHREKY OF COUNSEL KENDALL H. MAcVEY MARK A. EASTER GLEN W. PRICE CRAIG M. MARSHALL CHRISTOPHER L. CARPENTER' CLARK H. ALSOP MICHELLE OUELLETTE MARYMICHAEL McLEOD JEFFREY S. BALLINGER MICHAEL D. HARRIS' DAVID J. ERWIN' KEVIN K. RANDOLPH JAMES R.TOUCHSTONE M.THERESA TOLEN71NO MICHAEL J. ANDELSON' CYNTHIA M. GERMANO STEVEN M.ANDERSON JUDY L. voH ENDE ANNE T.THOMAS' DOUGLAS S. PHILLIPS' MARGUERITE S. STRAND ROBERT L. PATTERSON THERESA E.ANTONUCCI DONALD F.ZIMMER' GREGORY K.WILKINSON KYLE A.SNOW BRYAN K. BENARD MELISSA W.WOO CHRISTINA L. DYER GENE TANAKA JAMES B. GILPIN PAULA C.P.—SOUSA FRANKLIN C.ADAMS VICTOR L.WOLF KIM A. BYRENS LYSA M.SALTZMAN WILLIAM WOOD MERRILL DANIEL E. OLIVIER DEAN DERLETH MARCO A. MARTINEZ HOWARD B. GOLDS SONIA RUBIO CARVALHO JOHN F.WALSH D. BRIAN REIDER STEPHEN P. DEITSCH JOHN O. PINKNEY DANIEL G. STEVENSON KIRK W.SMITH JOHN R. ROTTSCHAEFER - PIERO C. DALLARDA JEFFRY F. FERRE MARTIN A. MUELLER DWIGHT M. MONTGOMERY DORINE LAWRENCE-HUGHES OFFICES IN J. MICHAEL SUMMEROUR WILLIAM D. DAHLING,JR. BRIAN P. HICKEY RANCHO MIRAGE(760) 568-261 1 SC C. SMITH BERNIE L.WILLIAMSON ALISON D. ALPERT RAYMOND BEST(I 868-1597) JACK B. CLARKE,JR. G. HENRY WELLES JORGE A. MARTINEZ JAMES H. KRIEGER(191 3-1975) ONTARIO(909)989-8584 BRIAN M. LEWIS' DINA O. HARRIS KRISHAN S. CHOPRA EUGENE BEST(1893-1981) SAN DIEGO(619) 525-1300 'A PROFESSIONAL CORPORATION File No.23816.00000 April 5, 2000 Gus Duran Housing and Redevelopment Manager City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) Dear Mr. Duran: Enclosed please find a declaration of mailing for the notice of hearing on the resolution of intention for the above-referenced proceeding. Please execute the declaration where indicated and attach a copy of the notice of hearing to the declaration. The declaration should be in the city clerk's possession for the April 17, 2000 council meeting. Please call with any questions. Very truly yours, 47�CA, Krishan Chopra for BEST BEST & KRIEGER LLP KSC:mfa Enclosure RECEIVED APR 10 7 2000 RVPLB\KSC\560578 DEPARTMENT OF E=10M16 DEVELOPtA0,17 CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) PROPERTY OWNER City of Huntington Beach Redevelopment Agency c/o Economic Development Department 2000 Main Street, 5th Floor Huntington Beach, CA 92648 RVPUB\KSC\560514 2 CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) NOTICE OF HEARING(attached) RVPUBUCSC\560514 3 DECLARATION OF MAILING NOTICE OF HEARING CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) I, Gus Duran, on behalf of the City Clerk of the City of Huntington Beach, hereby declare that on the 2nd day of February, 2000, pursuant to the provisions of law applicable herein, I caused a copy of the attached Notice of Hearing on Resolution of Intention with respect to the formation of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort)to be placed in an envelope addressed to an owner of real property within the territory of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), sealed such envelope and deposited it in the United States mail at Huntington Beach, California, with postage thereon fully prepaid; and that there is a regular communication by mail between the place of mailing and the places so addressed. A copy of the Notice of Hearing and the address of the property owner to whom the notice was mailed are attached hereto. I declare under penalty of perjury that the foregoing is true and correct. Executed this 7th day of April, 2000, at Huntington Beach, California. Gus 1juran RVPUB\KSC\560514 I NOTICE OF ADOPTION BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH OF A RESOLUTION DETERMINING THE NECESSITY FOR PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) TO INCUR BONDED w✓ INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT = NOT TO EXCEED $16,000,000 FOR PROVIDING PUBLIC r FACILITIES WITHIN AND FOR THE COMMUNITY cm FACILITIES DISTRICT, AND CALLING A SPECIAL ' ELECTION FOR THE COMMUNITY FACILITIES DISTRICT r ON THE PROPOSITION FOR INCURRING SUCH BONDED INDEBTEDNESS FOR FEBRUARY 22, 2000 NOTICE IS HEREBY GIVEN that on January 18, 200.0, the City Council of the City of Huntington Beach adopted a resolution determining the necessity for the proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), of the County of Orange, State of California (the 'District"), to incur a bonded indebtedness in an amount not to exceed $16,000,000 for providing public facilities within and for the District and calling a special election for the community facilities district on the proposition of the District incurring such bonded indebtedness for February 22, 2000. The resolution determining necessity to incur bonded indebtedness provides in summary as follows: 1. It is necessary for the District to incur a bonded indebtedness in an . aggregate principal amount not to exceed $16,000,000 for the purpose of providing the. public facilities specified in Resolution No. 2000-5, the resolution of intention for the District. 2. All parcels of property within the District shall be subject to the levy of special taxes to pay the principal of and interest on the bonds thereof which may be issued and sold to finance the design, construction and acquisition of public facilities I which are of benefit to all such parcels. 41 3. The aggregate principal amount of the bonded indebtedness to be incurred by the District shall not exceed $16,000,000. The maximum term of the bonds shall not exceed 40 years. The maximum annual rate of interest to be paid semiannually on the bonds shall not exceed 12 percent per annum or such other rate as may be the maximum interest rate permitted by law. 4. The proposition to be submitted to the voters within the Community Facilities District with respect to the proposed bonded indebtedness is as follows: Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred by and for Community Facilities District No. 2000-1 (Grand Coast Resort) of the City of Huntington Beach, County of Orange, State of California, for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the purpose of constructing and financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of bonds, the formation of the community facilities district, and the design, construction, and acquisition of the public facilities, including all costs and estimated costs of construction of the public facilities, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing. at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds, bond discount, interest on any bonds of the community facilities district estimated to be 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, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit or other credit enhancement costs, and printing costs. 5. The date of the special election with respect to the District incurring the aforementioned bonded indebtedness, at which time the aforementioned proposition will be submitted to the voters of the District is February 22, 2000. The special election shall be consolidated with the special election with respect to the propositions for (i) the levy of special taxes for the payment of the principal and interest on the bonds of the Community Facilities District, and (ii) establishing an appropriations limit for the Community Facilities District which have also been called for February 22, 2000. The CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT), COUNTY OF ORANGE, "STATE OF CALIFORNIA Special Election with Respect to (i) Incurring a Bonded Indebtedness for the Community Facilities District (ii) Annual Levy of Special Taxes to Pay the Principal of and Interest on Bonds thereof (iii)Establishment of an Appropriations Limit April 17, 2000 Ballot Pamphlet and Instructions to Voter RVPLB\KSC\551842 Dear Voter: The City Council of the City of Huntington Beach has called a special election for City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California. This is an all-mailed ballot landowner election. The ballots are being mailed to the persons or entities listed on the County Assessor's latest equalized assessment roll, as updated by information known to the City of Huntington Beach, regarding ownership. YOU WILL RECEIVE ONE BALLOT FOR EACH GROUP OF PARCELS SHOWN ON THE ASSESSOR'S ROLL UNDER AN IDENTICAL NAME AND ADDRESS. The ballots will be distributed based on the names and addresses designated on the assessment roll. Any parcels with a common.name and address were combined for voting purposes. Each qualified voter has been issued one ballot which entitles that voter to vote his or her total acreage of land. Each ballot is allotted a specified number of votes depending on acreage. Each acre of portion thereof is worth one vote. Please note that your ballot must be received by the City Clerk of the City of Huntington Beach not later than 7:00 p.m. on April 17, 2000, or immediately after the Resolution Callingthe Special Election is adopted. A POSTMARK DATE IS NOT ACCEPTABLE. You must use the enclosed envelope for returning your ballot by mail, or your ballot may be delivered in the envelope, to the office of the City Clerk of the City of Huntington Beach, located at 2000 Main Street, Huntington Beach, California 92648. Contained in this Ballot Pamphlet and Instructions to Voter are Instructions to Landowner Voter, a Sample Ballot, and a copy of the Resolution of Formation of the City Council, of the City of Huntington Beach. If you have any questions, please contact us at (714) 536-5227. Very truly yours, CITY CLERK CITY OF HUNTINGTON BEACH By: /s/ Connie Brockway RVPUB\KSC\551842 -2- INSTRUCTIONS TO LANDOWNER VOTER HOW TO VOTE YOUR BALLOT Vote your official ballot by placing a cross (+) in the voting square opposite your choice with a pen or pencil, and by completing, dating and signing the certificate attached thereto. SPOILING YOUR BALLOT If you tear your ballot or make an error in voting you may secure another by surrendering the ballot you spoiled,in person or by mail at the address below,or by executing an affi- davit to the effect that you lost your ballot, and you will be given another ballot. RETURNING YOUR BALLOT Enclose your ballot in the Identification Envelope provided. Supply ALL information requested on the Identification Envelope. YOUR VOTE WILL BE DISQUALIFIED IF YOU DO NOT FILL IN ALL THE INFORMATION. LAST DAY TO RETURN TO THE CITY CLERK Your ballot must be returned to the office of the City Clerk of the City of Huntington Beach not later than 7:00 p.m. on April 17, 2000, or immediately after the Resolution Calling the Special Election is adopted for it to be counted. YOUR BALLOT CANNOT BE ACCEPTED BEYOND THIS DEADLINE. Your ballot must be mailed in.the envelope provided for this purpose, or it may be delivered in the envelope to the office of the City Clerk of the City of Huntington Beach, located at 8353 Sierra Avenue, Huntington Beach, California 92335. RVPUB\KSC\551842 -3- � a r � SAMPLE BALLOT - DO NOT VOTE OFFICIAL BALLOT SPECIAL ELECTION FOR CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1(GRAND COAST RESORT), COUNTY OF ORANGE, STATE OF CALIFORNIA April 17, 2000 To vote,mark a cross(+)in the voting square after the word"YES" or after the word . "NO." All marks otherwise made are forbidden. If you wrongly mark,tear, or deface this ballot, return it to the City Clerk of the City of Huntington Beach and obtain another. PROPOSITION A: Shall a bonded indebtedness in an aggregate principal amount not to exceed .$16,000,000 be incurred by and for City of Huntington Beach Community Facilities DistrictNo. 2000-.1 (Grand Coast Resort), County of Orange, State of California,for a maximum term of not more than 40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the purpose of financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of -bonds, the formation of the Community Facilities District, and the design, construction, and acqui- sition of the public facilities, including all costs and estimated costs of construction of the public facili- ties, acquisition of land and rights-of-way, satis- faction of contractual obligations relating to expenses or the advancement of funds for expenses [Proposition A] existing at the time the bonds are issued,architectur- YES al, engineering, inspection, legal, fiscal and financial consultant fees,bond and other reserve funds, bond NO discount, interest on any bonds of the Community Page 1 of 2 RVPUB\KSC\551842 Facilities District estimated to be 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, costs of obtaining credit ratings,bond insurance pre- miums, fees for letters of credit or other credit enhancement costs, and printing costs? PROPOSITION B: Shall special taxes be levied annually on taxable property within City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), County of Orange, State of California,to pay the principal of and inter- est on the bonds of the community facilities district issued and sold to finance the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demandsi placed upon the City as a result of the development of said real property, and costs incidental thereto, to replenish the reserve fund for the bonds, or to accumulate funds for future bond payments, including any amount required by federal law to be rebated to the United States with regard to the bonds, and to pay expenses incidental thereto and to the levy and collection of the special taxes, so [Proposition B] long as the special taxes are needed to pay the prin- YES cipal of and interest on the bonds and for such other purposes, at the special tax rates and pursuant to the NO method of apportioning the special taxes set forth in Exhibit "B" to Resolution No. adopted by the City Council of the City of Huntington Beach on April 17, 2000? PROPOSITION C: Shall an appropriations limit, [Proposition c1 as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be YES established for City of Huntington Beach — Community Facilities District No.2000-1 (Grand NO Coast Resort), County of Orange, State of California, in the amount of $1,7k,000? RVPUB\Ksc\551842 A-2 Page 2 of 2 -- d1�TF�vMe►JT N0. ZDOD00382$� gi PROPOSED BOUNDARIES OF THE CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) COUNTY OF ORANGE, STATE OF CALIFORNIA I i I , IQe(ged+ANJ/2fQvfs7in Qy:G�Yy uG Mvnrf/A+Gac+ Tend+ I I TWIN a DOLPHIN DRIVE FILED THIS Z DAY OF -*'J AT THE HOUR OF O AL'CLOCKM IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACIL1TES DISTRICTS AT PAGE v IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF I N J756'06 E 33700' ORANGE. STATE OF CALIFORNIA.Pri.0 Bx4O+/l. /AlOiurM 1%7il mWARZ." / I} N3J5J'4dE� 6My L. G?AMVI/IGA COUNTY&A6ROER OF COUNTY OF ORANGE 1 I 1 ^ U I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF THE CITY OF HUNTNGTON BEACH COMMUNITY FACILITIES DISTRICT NO 2000-I, COUNTY OF ORANGE, STATE OF CAUFORNIA, WAS APPROVED BY THE CITY I N o COUNCIL OF THE CITY OF HINTNCTON BEACH AT A REGULAR MEETING I —— THEREOF,HELD ON THE[ _DAY OF jL.+yiy luq,BY ITS RESOLUTION NO. III NJ8.57'51_E U 2am3 FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF HUNTNGTON BEACH THIS'DAY OF abwq,a-0 41• 39• 80 N3S15'45E(R) THE CITY CLERK OF TH CITY OF HUNTNCTON BEACH I LEGAL.DESCRIPTION 700' R LOT 1 OF TRACT NO. 15535.RECORDED SEPTEMBER 14. 7999 IN MAP BOOK —NNt545E 790.PAGES 44-50,RECORDS OF ORANGE COUNTY, CALIFORNIA. 50' 50- 1 u N3705.56 E(Rz I = I n MICHAEL SIMON P.L.S.N0. 6034 EXP 6-30-01 n i a o U I n n I LOT I TnAC I" 15535 m I 25Eo LAND SUgL N i 15,103 ACri—F:�S 1 N3705'S6"E(R) L/7 IC Ep.6oJ0-D1 - � I J) S Z S�or G�O - � In 2 A g " 0 Im BASIS OF BEARINGS In oN�11 BEARINGS HEREON ARE BASED ON THE BEARINGS BETWEEN O.C.S. = HORIZONTAL CONTROL STATION GPS 5010 AND STATION GPS 5009 i BEING NORTH 8925'47'WEST PER RECORDS ON FILE IN THE OFFICE OF THE ORANGE COUNTY SURVEYOR. \ I \ \ C U R V E D A TA I v \/ / NUMBER DELTA DNS LENGTH /Cyr Cl 053421' 1055.00' IO2.61' C2 05'42'06 n45,00' nJ.94' C3 0 J50'11" I0 55.00' 70.64' 14 /J49' 6G.00' OJ��,\((.•�, C5 IJ49'S8' 60.00' 14.49' II �, LINE DATA e'er (. ''o NUMBERM-',rO2'I2' 0157ANCE 4'W 41.J8' \1 / L2 'E 30.17' �,10 LJ 0"W 46.57' L4 -W 126.00' �eFT� LS 0"W J0.84' (l L6 "E 10.85' � _ L7 N 65'44'14"E 7730' L8 N 5704'15'W 164.45' N 76'10'26 E 26.20' J V LIO N,J8'14'lY W 35.61, �0 LII N 5704'15 -W 154.47'- 6 100 50 0 100 200 300 r� I 1'.100' W:\PP.OJECTS\252\02C\CCST-SHR_AGRMN'.DK NOTICE OF PUBLIC HEARING nN RESOLUTION OF INTENTION TO been registered to vote within the territory of the community facilities distiict for each of the 90 ESTABLISH PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY- days preceding the close of the public or protest hearing,the vote in the consolidated special FACILITIES DISTRICT NO.2000-1(GRAND COAST RESORT) elections shall be by the registered voters of the community facilities district,with each voter having one vote.In that event.the consolidated special elections shall be condtaxed by the NOTICE IS HEREBY GiVEN that on January 18,2000,the City Council of the City of Registrar of Voters of the County of Orange and shall be bell on a date selected by the City Huntington Beach adopted Resolution No.2000-5.the resolution of intention with respect to the Council in conformance with the provisions of Section 53326 of the California Government Code establishment of proposed City of Huntington Beach Community Facilities District No.2000-1 and pursuant to the provisions of the California Elections Code ggoovetoing elections of cities, (Grand Coast Resort),of the County of Orange,State of California,and that a public hearing on insofar as they may be applicable,and pursuant to said Section 53326 the ballots for the said resolution of intention and with respect to the establishment of said community facilities consolidated special elections shall be distributed to the qualified electors of the community district will be held at,7:00 p.m.(or as soon thereafter as possible)on February 22,2000,in the facilities district by mail with return postage prepaid and the consolidated special elections shall be City Council Chambers of the Huntington Beach Civic Center located at 2000 Main Street, conducted as a mail ballot election.If 12 persons have not been registered to vote within the Huntington Beach,California territory of the proposed community facilities district for each of the 90 days g the close of the protest hearing,the vote shall be by the landowners of the community ili'ties district,with Resolution No.2000-5 adopted_on January 18,2000,provides in summary as follows: each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district In 1.The name proposed for the community facilities district is"City of Huntington Beach that event,the consolidated special elections shall be conducted by the City Clerk as specified in Community Facilities District No.2000-1(Grand Coast Resort)of the County of Orange,State of.. Resolution No.2000-5 and applicable sections of the California Ela lions Cade. California." In that event,the ballots for the consolidated special elections shall be dWributed to the qualified 2.The boundaries of the proposed community facilities district are shown on the map entitled electors by the City Clerk by mail with return ppoosstage prepaid,or by personal service.The City "Boundaries of City of Huntington Beach Community Facilities District No.2000.1(Grand Coast Clerk shall mail to each qualified elector an of rcial ballot,and shall also mail to all such qualified Resort)of the County of Orange,State of California."which is on file with the City Clerk of the electors other required election docmnents,inclining a rebus identification envelope with prepaid City of Huntington Beach.That map is approved and the City Clerk shall file the original of said Portage thereon addressed to the City Clerk for the return of the voted official ballots. map in her office and not later than 15 days prior to the date of the public hearing shall record a copy of said boundary map with the County Recorder of the County of Orange. 'Me instruction to voter form to be mailed by the City Clerk to die-landowner-voters shall inform them that the official ballots shall be rebind to the City Clerk properly voted as provided thereon 3.The types of publicr isesproposedand with the certification thereto properly completed and si in the sealed return counityfaciliiesdctare the costs of maintenance far the purposes of constructing andidentification envelope wi the certification thereon completed and signed and aU other financigghtheof bonds the construction,acquisition furnishing and equipping of information to be inserted thereon properly inserted on the date of the election. public facilities which are necessary to meet increased demands placed upon the City as a result of Upon receipt of the return identification envelopes which are returned or to the voting deadline c�eevelopment of said real property.Proceeds from the sale of the bonds of the proposed umry facilities district may be tiled to pay costs associated with the construction,acquisition, on the date of the elections,the City Clerk shall canvass the votes cast m the consolidated special shing and equipping of facilities to benefit the lands within the boundaries of the proposed elections,and shall file a statement with the City Council as to the results of such canvass and the mumty facilities dist&L election on each proposition set forth in the official ballot 4.Special taxes sufficient to pay for all such facilities and to pay the principal of and interest on Resolution No.2000-5 contains other provisions which are not summazized above.A copy of the bonds of the proposed community facilities district and other incidental expenses shall be Resolution No.2000-5 may be reviewed or obtained at the office of the City Clerk of the City of annually levied within the proposed community facilities districL The maximum amounts of Huntington Beach in the Civic Center located at 2000 Main Street,Second Floor,Huntington special taxes which may be annually levied are as follows: Beach,California. ANNUAL MAXIMUM SPECIAL TAX. NOTICE IS FURTHER GIVEN that at the hearing the testimony of all interested persons or As of any Interest Payment Date,the Maximum Special Tax for leasehold interests in Taxable taxpayers for or against the establishment of the community facilities district,or the furnishing of Property in CFD No.2000-1 shall be the greater of(1)$130,000 per acre of Taxable Property specified types of public facilities will be heard.If 50 percent or more of the registered voters,or pursuant to which such leasehold interest pertains,or(2)the amount determined pursuant to the six registered voters,whichever is more,residing within the territory proposed to be included in Q the proposed community facilities district and not exempt from the levy of special taxes,or the following steps,but not to exceed in any event the Special Tax Requirement applicable for any owners of one-half or more of the area of the land in said territory,fik written protests against_ilm Fiscal Year establishment of the proposed community facilities district,and protests we not withdrawn so as to reduce the value of the protest to less than a ma further Step 1:Determine the maximum annual debt service on'all Outstanding Bonds; �rity,no fther proceedings to create the Step 2:Multiply the total debt service determined in Step 1 by 1.11 and all the Administrative community facilities district or to levy the specified special taxes shall be taken for a period of one Expenses to determine the maximum potential Special Tax Requirement for Bonds; year from the date of the decision of the City Council.If majority protests of the registered voters Step 3:Determine the Acreage of Taxable Property within the CFD; or of the landowners are only against the furnishing of a specified type or types of public facilities Step 4:Divide the,amount from Step 2 by the Acreage from Step 3 to determine the Maximum within the community facilities district,or against levying a specified special tax,thaw types of Fixed Rate Special Tax per Acre of Taxable Property in the CFD. facilities or the specified special tax will be eliminated from the resolution of formation establishing the community facilities district " The conditions under which the obligation to pay the special taxes may be prepaid and DATED:January 27,2000 /s/ Connie Brockway permanently satisfied are as set forth in Exhibit"B"to Resolution No.2000-5. city CClleay METHOD OF APPORTIONMENT OF THE SPECIAL TAX H Huntington Beach/Fountain Valle Independent 10,2000 At least twelve business days prior to an Interest Payment Date,the Administrator shall determine Publishedgto y n�nden February 022-095 or cause to be determined the Special Tax Requirement for the Interest Payment Date.The Special Tax shall then be levied proportionately per Acre on the leasehold interest in each Assessor's Parcel of Taxable Property up to 100%of the Maximum Special Tax for Taxable Property,as determined by reference to the Annual Maximum Special Tax calculation steps set forth above anA in Section C to Exhibit"B"of Resolution No.2000-5.until the amount levied is equal to the Special Tax Requirement due on the Interest Payment Date. 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.2000-1 may directly bill the Special Tax and may collect Special Taxes at a different time or manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent . Assessor's Parcels as permitted by the Mello Roos Community Facilities Act of 1982. 5.A public hearing on the establishment of the proposed community facilities district shall be held at 7:00 p.m.on February 22,2000 in the City Council Chambers of the Civic Center of the City of Huntington Beach located at 2000 Main St.Huntington Beach,California. 6.The City Clerk shall publish a notice of the time and place of said hearing and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each, landowner within the proposed community facilities district.Said notice shall be published at least seven(7)days and mailed at least 15 days before the date of the hearing. 7.At or before the time of said hearing,a report or reports shall be prepared and filed with the City Council containing a brief description of the public facilities by type which will in their-opinion be required to adequately meet the needs of the proposed community facilities district and their estimate of the fair and reasonable cost of providing those public facilities and the incidental expenses to be incurred in connection therewith.All such reports shall be made a part of the record of the hearing. 8.The consolidated special elections on(i)the proposition of the proposed community facilities district incurring a bonded indebtedness in an amount not to exceed 16,000,000,(ii)the proposition with respect to the levy of special taxes on the land within the community facilities district to pay the principal of and interest on the bonds thereof,and(iii)the proposition with respect to the establishment of an appropriations limit for the community facilities district in the amount of$1,750,000 if the community facilities district is established and such consolidated .1 special elections are held,shall be conducted as a mail ballot election.If at least 12 persons have k t PROOF OF PUBLICATION STATE OF CALIFORNIA) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I ' am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of gtneral circulation, printed and published in the City of Huntington Beach, County of Orange, State of. California, and that attached Notice is a true and complete copy as was printed and published in the Huntington Beach and Fountain Valley issues of said newspaper to wit the issue(s) of: February 10, 2000 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on February 10, 2000 at Costa Mesa, California. Signature NOTICE OF ADOPTION BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH OF A RESOLUTION DETERMINING THE NECESSITY FOR. PROPOSED CITY OF HUNTINGT,ON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) TO INCUR BONDED INDEBTEDNESS.IN AN AGGREGATE PRINCIPAL AMOUNT NOT'TO EXCEED'$16,(W,(W FOR PROVIDING PUBLIC FACILITIES WITHIN AND FOR THE COMMUNITY FACILITIES DISTRICT, AND CALLING A SPECIAL ELECTION FOR THE COMMUNITY FACILITIES DISTRICT ON THE PROPOSITION FOR ' INCURRING SUCH BONDED INDEBTEDNESS FOR FEBRUARY 22,2000. NOTICE IS HEREBY GIVEN that on January 18,2000,the City Council of the City of PROOF OF PUBLICATION Huntington Beach adopted a resolution determining the necessity for the proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort),of the County of Orange,State of California(the"District"),to incur a bonded indebtedness in an amount not to exceed$16,000,000 for providing public facilities within and for the District and STATE OF CALIFORNIA) calling a special election for the community facilities district on the proposition of the District incurring such bonded indebtedness for February 22,2000. The resolution determining necessity to incur bonded indebtedness provides in summary as S S. follows: County of Orange ) 1. It is necessary for the District to incur a bonded indebtedness in an aggregate principal amount not to exceed$16,000,000 for the purpose of providing the public facilities specified in Resolution No.2000-5,the resolution of intention for the District. 2. All parcels of property within the District shall be subject to the levy of special taxes to I a m a Citizen of the United States and pay the principal of and interest on the bonds thereof which may be issued and sold to finance the design,construction and acquisition of public facilities which are of benefit to all such resident of the County aforesaid; I a parcels. over the age of eighteen years, and n of 3. The aggregate principal amount of the bonded indebtedness to be incurred by the District tCcnti-ed on next page).-.. party to or interested in the belola -_ - (Continued from preceding page) entitled matter. I am a principal clerk o shall not exceed$16,000,000.The maximum term of the bonds shall not exceed 40 years.The the H U N T I N GTO N BEACH INDEPENDENT maximum annual rate of interest to be paid semiannually on the bonds shall not exceed 12 percent per annum or such other rate as may:be the maximum interest rate permitted by law. newspa er of gL3neral circulation, pri me 4. The proposition to be submitted to the voters within the Community Facilities District with respect to the proposed bonded indebtedness is as follows: and published in the City of H u n t i n gto Shall a bonded indebtedness in an aggregate principal amount not to exceed$16,000,00o be State Q incurred by and for Community Facilities District No.2000-1(Grand Coast Resort)of Beach, County of Orange, the City of Huntington Beach,County of Orange,State of California,for a maximum term of not more than 40 years and with interest at rate or rates not to exceed 12 California, and that attached Notice is percent per annum,or such other rate as may be the maximum interest rate permitted by true and complete copy as was printed law,for the purpose of constructing and financing through the sale of bonds the and published in the Huntington Beach construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the and Fountain Valley issues of said development of said real property,and paying costs incidental to the sale of bonds,the formation of the community-facilities district, and the design, construction, and. newspaper to wit the issue(s) of: acquisition of the public facilities, including all costs and estimated costs of construction of the public facilities,acquisition of land and rights-of-way,satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued,architectural,engineering,inspection,legal, fiscal and financial consultant fees, bond and other reserve funds, bond discount, interest on any bonds of the community facilities district estimated to be due and February 10 2 0 0 0 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,costs of obtaining credit ratings,bond insurance premiums,fees for letters of credit or other: credit enhancement costs,and printing costs. 5. The date of the special election with respect to the District incurring the aforementioned I declare, under bonded indebtedness,at which time the aforementioned proposition will be submitted to the penalty o f perjury, that voters of the District is February 22,2000.The special election shall be consolidated with the the foregoing is true and correct. Special election with respect to the propositions for(i)the levy of special taxes for the payment of the principal and interest on the bonds of the Community Facilities District, and (ii) establishing an appropriations limit for the Community Facilities District which have also been called for February 22.2000.The consolidated special elections shall be conducted by mail ballot.If all qualified electors have voted,the election shall be closed Executed on February 10 2000 6. A copy of the resolution determining the necessity to incur bonded indebtedness may be at Costa Mesa, California. reviewed or obtained at the.office of the City Clerk of the City of:Huntington Beach, � Huntington Beach Civic Center, 2000 Main Street, Second Floor, Huntington Beach, California,92648. DATED:January 27.2000 /st Connie Brockway City Clerk Published Huntington.Beach-Fountain Valley independent February 10,2000.,.. 022-694 E Signature 6' ` City of Huntington Beach A IJ 2000 MAIN STREET CALIFORNIA92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 714/536-5582 Redevelopment 714/536-5582 FAX 714/375-5087 Housing 714/536-5542 February 2, 2000 The Redevelopment Agency of the City of Huntington Beach c/o Economic Development Department 2000 Main Street, 5tn Floor Huntington Beach, CA 92648 Dear Executive: Attached please find a Notice of Public Hearing on Resolution of Intention to Establish Proposed City of Huntington Beach Community Facilities District no. 2000-1 (Grand Coast Resort) and a Notice of Adoption by the City of Huntington Beach of a Resolution Determining the Necessity for the Proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) to Incur Bonded Indebtedness in an Aggregate Principal Amount not to Exceed $16 million for Providing Public Facilities district, and Calling a Special Election for the Community Facilities District on the Proposition for Incurring such Bonded Indebtedness for February 22, 2000. These notices are being provided to you for the purpose of officially notifying you of the public hearing and of the election in which you will participate to establish the Community Facilities District. Should you have any questions, please feel free to contact David C. Biggs, Director of Economic Development for the City of Huntington Beach at (714) 536-5909. Sincer yours, i e4� Gustavo A. Dur6n Housing and Redevelopment Manager � 0 4 2000 of P PaltJ�v��OPMEN� pE ,G pE E.CNC0 a - r COMPLETE •N COMPLETE THIS SECTIONON DELIVERY I ■ Complete items 1,2,and 3.Also Complete A Received by(Please Print Clearly) B. Date of Del ivery item 4 if Restricted Delivery is desired. —� ■ Print your name and address on the reverse C. Signature so that we can return the card to you. ❑Agent ■ Attach this card to the back of the mailpiece, x or(�qfthe front if space permits. ❑Addressee 1. Article Addressed to: D. Is delivery ad ss different from item 1? ❑Yes If YES,enter elivery address below: ❑No t *f e �'� i il�cr�ia��`i�h Ea - 4j0 3. Service Type / Certified Mail OExpress Mail ❑ Registered O:?Return Receipt for Merchandise ❑ Insured Mail ❑c.o.R. 4. Restricted Delivery?(Extra Fee) ❑Yes 2. Article Number(Copy from service label) PS Form 3811,July 1999 Domestic Return Receipt 102595.99-M-1789 r I NOTICE OF ADOPTION BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH OF A RESOLUTION DETERMINING THE NECESSITY FOR PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) TO INCUR BONDED INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,000,000 FOR PROVIDING PUBLIC FACILITIES WITHIN AND FOR THE COMMUNITY FACILITIES DISTRICT, AND CALLING A SPECIAL ELECTION FOR THE COMMUNITY FACILITIES DISTRICT ON THE PROPOSITION FOR INCURRING SUCH BONDED INDEBTEDNESS FOR FEBRUARY 22, 2000 NOTICE IS HEREBY GIVEN that on January 18, 2000, the City Council-of the City of Huntington Beach adopted a resolution determining the necessity for the proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), of the County of Orange, State of California (the 'District"), to incur a bonded indebtedness in an amount not to exceed $16,000,000 for providing public facilities within and for the District and calling a special election for the community facilities district on the proposition of the District incurring such bonded indebtedness for February 22, 2000. The resolution determining necessity to incur bonded indebtedness provides in summary as follows: 1. It is necessary for the District to incur a bonded indebtedness in an. aggregate principal amount not to exceed $16,000,000 for the purpose of providing the. public facilities specified in Resolution No. 2000-5, the resolution of intention for the District. 2. All parcels of property within the District shall be subject to the levy of special taxes to pay the principal of and interest on the bonds thereof which may be issued and sold to finance the design, construction and acquisition of public facilities which are of benefit to all such parcels. 3. The aggregate principal amount of the bonded indebtedness to be incurred by the District shall not exceed $16,000,000. The maximum term of the bonds shall not exceed 40 years. The maximum annual rate of interest to be paid semiannually on the bonds shall not exceed 12 percent per annum or such other rate as may be the maximum interest rate permitted by law. 4. The proposition to be submitted to the voters within the Community Facilities District with respect to the proposed bonded indebtedness is as follows: Shall a bonded indebtedness in an aggregate principal amount not to exceed $16,000,000 be incurred by and for Community Facilities District No. 2000-1 (Grand Coast Resort) of the City of Huntington Beach, County of Orange, State of California, for a maximum term of not more than -40 years and with interest at a rate or rates not to exceed 12 percent per annum, or such other rate as may be the maximum interest rate permitted by law, for the purpose of constructing and financing through the sale of bonds the construction, acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property, and paying costs incidental to the sale of bonds, the formation of the community facilities district, and the design, construction, and acquisition of the public facilities, including all costs and estimated costs of construction of the public facilities, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds, bond discount, interest on any bonds of the community facilities district estimated to be 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, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit or other credit enhancement costs, and printing costs. 5. The date of the special election with respect to the District incurring the aforementioned bonded indebtedness, at which time the aforementioned proposition will be submitted to the voters of the District is February 22, 2000. The special election shall be consolidated with the special election with respect to the propositions for (i) the levy of special taxes for the payment of the principal and interest on the bonds of the Community Facilities District, and (ii) establishing an appropriations limit for the Community Facilities District which have also been called for February 22, 2000. The w , A consolidated special elections shall be conducted by mail ballot. If all qualified electors have voted, the election shall be closed. 6. A copy of the resolution determining the necessity to incur bonded indebtedness may be reviewed or obtained at the office of the City Clerk of the City of Huntington Beach, Huntington Beach Civic Center, 2000 Main Street, Second Floor, Huntington Beach, California, 92648. DATED: Connie Brockway, City Clerk of the City of Huntington Beach PUBLISH: February 10, 2000 MAIL.TO PROPERTY OWNER(S): February 4, 2000 j r The foregoing instrument is a correct copy of the original on file in this office. Attest NN E BR CKWAY RVPUB\KSC\547627 City •Clerk and Ex•officio Clerk of the City Council of the City of Huntington Beach, -Ca ' BYlifo . Deputy NOTICE OF HEARING ON RESOLUTION OF INTENTION TO ESTABLISH PROPOSED CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (GRAND COAST RESORT) NOTICE IS HEREBY GIVEN that on January 18, 2000, the City Council of the City of Huntington Beach adopted Resolution No. 2000-5, the resolution of intention with respect to the establishment of proposed City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort), of the County of Orange, State of California, and that a'public hearing on said resolution of intention and with respect to the establishment of said community facilities district will be held at 7:00 p.m.(or as soon thereafter as possible) on February 22, 2000, in the City Council Chambers of the Huntington Beach Civic Center located at 2000 Main Street, Huntington Beach, California. Resolution No. 2000-5 adopted on January 18, 2000, provides in summary as follows: 1. The name proposed for the community facilities district is "City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort).of the County of Orange, State of California". 2. . The boundaries of the proposed community facilities district are shown on the map entitled "Boundaries of City of Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) of the County of Orange, State of California", which is on file with the City Clerk of the City of Huntington Beach. That map is approved and the City Clerk shall file the original of said map in her office, and not later than 15 days prior,to the date of the public hearing shall record a copy of said boundary map with the County Recorder of the County of Orange. 3. The types of public services proposed to be provided for and financed by - the proposed community facilities district are the costs of maintenance for the purposes of constructing and financing through the sale of bonds the construction; acquisition, furnishing and equipping of public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property. Proceeds from the sale of the bonds of the proposed community facilities district may be used to pay costs associated with the construction, acquisition, furnishing and equipping of facilities to benefit the lands within the boundaries of the proposed community facilities district. 4. Special taxes sufficient to pay for all such facilities and to pay the principal of and interest on the bonds of the proposed community facilities district and other incidental expenses shall be annually levied within the proposed community facilities district. The maximum amounts of special taxes which may be annually levied are as follows: ANNUAL MAXIMUM SPECIAL TAX. As of any Interest Payment Date, the Maximum Special Tax for leasehold interests in Taxable Property in CFD No. 2000-1 shall be the greater of(1) $130,000 per Acre of Taxable Property pursuant to which such leasehold interest pertains, or (2) the amount determined pursuant to the following steps, but not to exceed in any event the Special Tax Requirement applicable for any Fiscal Year: Step 1: Determine the maximum annual debt service on all Outstanding Bonds; Step 2: Multiply the total debt service determined in Step 1 by 1.11 and all the Administrative Expenses to determine the maximum potential Special Tax Requirement for Bonds; Step 3: Determine the Acreage of Taxable Property within the CFD; Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to determine the Maximum Fixed Rate Special Tax per Acre of Taxable Property in the CFD. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in Exhibit "B" to Resolution No. 2000-5. RVPUB%XSC%347602 2 METHOD OF APPORTIONMENT OF THE SPECIAL TAX. At least twelve business days prior to an Interest Payment Date, the Administrator shall determine or cause to be determined the Special Tax Requirement for the Interest Payment Date. The Special Tax shall then be levied proportionately per Acre on the leasehold interest in each Assessor's Parcel of Taxable Property up to 100% of the Maximum Special Tax for Taxable Property, as determined by reference to the Annual Maximum Special Tax calculation steps set forth above and in Section C to Exhibit `B" of Resolution No. 2000-5, until the amount levied is equal to the Special Tax Requirement due on the Interest Payment Date. 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. 2000-1 may directly bill the Special Tax and may collect Special Taxes at a different time or manner if necessary to meet it's financial obligations, and may covenant to foreclose and may actually foreclose on the leasehold interest in delinquent Assessor's Parcels as permitted by the Mello Roos Community Facilities Act of 1982. 5. A public hearing on the establishment of the proposed community facilities district shall be held at 7:00 p.m. on February 22, 2000 in the City Council Chambers of the Civic Center of the City of Huntington Beach located at 2000 Main Street,Huntington Beach, California. 6. The City Clerk shall publish a notice of the time and place of said hearing and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed community facilities district. Said notice shall be published at least seven (7) days and mailed at least 15 days before the date of the hearing. 7. At or before the time of said hearing, a report or reports shall be prepared RVPUBWC1547602 3 and filed with the City Council containing a brief description of the public facilities by type which will in their opinion be required to adequately meet the needs of the proposed community facilities district and their estimate of the fair and reasonable cost of providing those public facilities and the incidental expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing. 8. The consolidated special elections on (i) the proposition of the proposed community facilities district incurring a bonded indebtedness in an amount not to exceed $16,000,000, (ii) the proposition with respect to the levy of special taxes on the land within the community_facilities district to pay the principal of and interest on the bonds thereof, and (iii) the proposition with respect to the establishment of an appropriations limit for the community facilities district in the amount of $1,750,000 if the community facilities district is established and such consolidated special elections are held, shall be conducted as a mail ballot election. If at least 12 persons have been registered to vote within the territory of the community facilities district for each of the 90 days preceding the close of the public or protest hearing, the vote in the consolidated special elections shall be by the registered voters of the community facilities district, with each voter having one vote. In that event, the consolidated special elections shall be conducted by the Registrar of Voters of the County of Orange and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the consolidated special elections shall be distributed to the qualified electors of the community facilities district by mail with return postage prepaid and the consolidated special elections shall be conducted as a mail ballot election. If 12 persons have not been registered to vote within the territory of the proposed community facilities district for each of the 90 days preceding the close of the protest hearing, the vote shall be by the landowners of the community facilities district, with each landowner of record at the close of the protest hearing having one RVPUB\KSC\547602 4 vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district. In that event, the consolidated special elections shall be conducted by the City Clerk as specified in Resolution No. 2000-5 and applicable sections of the California Elections Code. In that event, the ballots for the consolidated special elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. The City Clerk shall mail to each qualified elector an official ballot, and shall also mail to all such qualified electors other required election documents, including a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots. The instruction to voter form to be mailed by the City Clerk to the landowner- voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted on the date of the election. Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. Resolution No. 2000-5 contains other provisions which are not summarized above. A copy of Resolution No.2000-5 may be reviewed or obtained at the office of the City Clerk of the City of Huntington Beach in the Civic Center located at 2000 Main Street, Second Floor,Huntington Beach, California. NOTICE IS FURTHER GIVEN that at the hearing the testimony of all interested persons or taxpayers for or against the establishment of the community facilities district, or the furnishing of specified types of public facilities will be heard. If 50 percent or more of the registered voters, RVPUB\KSC1547602 5 or six registered voters, whichever is more, residing within the territory proposed to be included in the proposed community facilities district and not exempt from the levy of special taxes, or the owners of one-half or more of the area of the land in said territory, file written protests against the establishment of the proposed community facilities district, and protests are not withdrawn so as to.reduce the value of the protest to less than a majority, no further proceedings to create the community facilities district or to levy the specified special taxes shall be taken for a period of one year from the date of the decision of the City Council. If majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of public facilities within the community facilities district, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated from the resolution of formation establishing the community facilities district. DATED: C� 02 � Connie Brockway City Clerk of the"City of Huntington Beach The foregoing instrument is a correct COPY 'of the original on file in this Office. Attest RVPUB\KSC1537602 OONNIE BR CKWAY City Clerk and EXN I IIJClo Clerk of the City Council of the City of Huntington Beach, •Calif 6 eputy s i Z 268 017 417 � � B -• � ., a.. a ,. .. < , '" s ., t . City of. Huntington :Beach CALIFORMW92B48 ` < : pNUNTiNGTON BEACK < _ -e€ - ., _e _ _ <• < O • • The Redevelopment Agency of the City of Huntington Beach c/o Economic Development Dept. 2000 Main Street, 5th floor Huntington Beach, CA 92648