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HomeMy WebLinkAbout02-03 TPFA Resolution RESOLUTION NO. TPFA 02-03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF FORMATION OF TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT AND SUBMITTING LEVY OF THE SPECIAL TAX AND THE ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT WHEREAS, on December 11, 2001, this Board of Directors adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Therein" (the "Resolution of Intention") stating its intention to form the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) (the "District") pursuant to the Meilo-Roos Community Facilities Act of 1982, California Government Code Section 53311 et seq. (the "Law"); and WHEREAS, the Resolution of Intention, incorporating by reference a map of the proposed boundaries of the District and describing the public improvements eligible to be financed by the District (the "Facilities"), the maintenance services eligible to be funded by the District (the "Services"), and the bonds (the "Prior Bonds") secured by a special tax lien on parcels in the District which Prior Bonds are to be defeased by the District, the cost of financing a portion of the costs of the Facilities and of defeasing the Prior Bonds and of providing the annual Services, and the rate and method of apportionment of the special tax to be levied within the District to pay the cost of financing a portion of the costs of the Facilities and of defeasing the Prior Bonds and of providing the annual Services, and to pay the principal and interest on bonds proposed to be issued with respect to the District, is on file with the Secretary and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, the Resolution of Intention called for a public hearing on the District to be held on January 22, 2002 and on such date this Board of Directors opened the public hearing and continued the public hearing to February 12, 2002; and WHEREAS, on February 12, 2002, this Board of Directors adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Making Findings of Complexity of Proposed Community Facilities District No. 01-2 (Harveston)," pursuant to which resolution this Board of Directors found that the complexity of the District and the need for public participation required additional time, and thereby further continued the public hearing to February 26, 2002; and WHEREAS, on February 26, 2002, this Board of Directors again continued the public hearing to March 5, 2002, and on March 5, 2002 this Board of Directors again continued the public hearing to March 26, 2002; and R:FrPFA Resos 2002FI'PFA 02-03 1 WHEREAS, since the date of adoption of the Resolution of Intention, (i) the list of the Facilities eligible to be funded by the District has been revised to eliminate certain improvements previously listed in the Resolution of Intention, and (ii) the proposed Rate and Method of Apportionment of Special Taxes for the District (the "Rate and Method") has been revised to clarify certain matters set forth therein, and the landowners in the District have been provided with the revised description of the Facilities and the revised Rate and Method; and WHEREAS, on this date, this Board of Directors held the continued public hearing as required by the Law and the Resolution of Intention relative to the proposed formation of the District; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District, the Facilities and Services eligible to be funded by the District, and the Prior Bonds to bE defeased, thereby and the levy of the special tax were heard and a full and fair hearing was held; and WHEREAS, at the hearing evidence was presented to this Board of Directors on the matters before it, including a report by the Director of Public Works of the City of Temecula (the "Report") as to the Facilities and Services eligible to be funded, and the Prior Bonds to be defeased, by the District and the costs thereof, a copy of which is on file with the Secretary, and this Board of Directors at the conclusion of the hearing was fully advised regarding the District; and WHEREAS, written protests with respect to the formation of the District and/or the furnishing of specified types of Facilities or Services or of the Prior Bonds to be defeased as described in the Report have not been filed with the Secretary by fifty pement (50%) or more of the registered voters residing within the territory of the District or property owners of one-hail (1/2) or more of the area of land within the District and not exempt from the special tax; and WHEREAS, the special tax proposed to be levied in the District to pay for a portion of the costs of the Facilities and to pay for the costs of the annual Services and of the defeasance of the Prior Bonds, as set forth in Exhibit B to this Resolution, has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. The foregoing recitals are true and correct. Section 2. The Resolution of Intention is hereby amended by deleting Exhibits A and B thereto and by inserting therein, in lieu thereof, the text of Exhibits A and B to this Resolution. Section 3. The proposed special tax to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Law. On April 10, 2001, this Board of Directors adopted a resolution approving Local Goals and Policies for Community Facilities Districts, and this Board of Directors hereby finds and determines that the District is in conformity with said goals and policies. R:/TPFA Resos 2002/TPFA Resos 02-03 2 Section 4. All prior proceedings taken by this Board of Directors in connection with the establishment of the District and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Law. Section 5. The community facilities district designated 'q'emecula Public Financing Authority Community Facilities District No. 01-2 (Harveston)" is hereby established pursuant to the Law. Section 6. The boundaries of the District, as described in the Resolution of Intention and set forth in the boundary map of the District recorded in the Riverside County Recorder's Office at Book 50 of Maps of Assessment and Community Facilities Districts at Page 53, are hereby approved, are incorporated herein by this reference and shall be the boundaries of the District. Section 7. The type of facilities and services eligible to be funded by the District pursuant to the Law, and the Prior Bonds to be defeased by the District pursuant to the Law, are as described in Exhibit A to this Resolution which Exhibit is by this reference incorporated herein. This Board of Directors hereby finds that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring in the District. The execution and delivery by the Executive Director of a Joint Community Facilities Agreement between the Authority and the City of Temecula in the form on file with the Secretary, is hereby ratified. This Board of Directors also authorizes and directs the Executive Director to execute a Joint Community Facilities Agreement with the State of California Department of Transportation, in a form provided by Bond Counsel, as necessary under the Law to finance those Facilities to be owned by said agency. This Board of Directors hereby declares that said Joint Community Facilities Agreements will be beneficial to residents in the area of the District. Section 8. Except to the extent that funds are otherwise available to the District to pay for the Facilities and Services, to pay the costs to defease the Prior Bonds, and/or to pay the principal and interest as it becomes due on bonds of the District issued to finance the Facilities and defease the Prior Bonds, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied within the District and collected in the same manner as ordinary ad valorem property taxes or in such other manner as this Board of Directors shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B to this Resolution which Exhibit is by this reference incorporated herein. This Board of Directors hereby finds that the basis for the levy and apportionment of the special tax, as set forth in the Rate and Method, is reasonable. Section 9. The Treasurer of the Temecula Public Financing Authority, 43200 Business Park Drive, Temecula, CA 92590, telephone number (909) 694-6430, is the officer of the Authority that will be responsible for preparing annually and whenever otherwise necessary a current roll of special tax levy obligations by assessor's pamel number and which will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Law. R:FFPFA Resos 2002JTPFA Resos 02-03 3 Section 10. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in 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 tax by the Authority ceases. Section 11. In accordance with Section 53325.7 of the California Government Code, the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, of the District is hereby preliminarily established at $25,000,000 and said appropriations limit shall be submitted to the voters of the District as provided below. The proposition establishing the appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of Section 53325.7 of the Law. Section 12. Pursuant to the provisions of the Law, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this Board of Directors. Section 13. This Resolution shall take effect upon its adoption. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority at a meeting held on the 26th day of March, 2002. Ron Roberts, Chairperson ATTEST: "%[~EA~'] ~ R:/'rPFA Resos 2002FI'PFA Resos 02-03 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan Jones, Secretary of the Temecula Public Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. TPFA 02-03 was duly adopted at a regular meeting of the Board of Directors of the Temecula Public Financing Authority on the 26th day of March, 2002, by the following vote: AYES: 4 BOARDMEMBERS: Comerchero, Naggar, Stone, Roberts NOES: 0 BOARDMEMBERS: None ABSENT: 1 BOARDMEMBERS: Pratt ABSTAIN: 0 BOARDMEMBERS: None Jones~'~, CMC  rity Secretary R:/I'PFA Resos 2002/'I'PFA Resos 02-03 5 EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) DESCRIPTION OF FACILITIES AND SERVICES ELIGIBLE TO BE FUNDED BY THE DISTRICT AND PRIOR BONDS TO BE DEFEASED BY THE DISTRICT FACILITIES It is intended that the District will finance $5,150,000 of the costs of any of the following: 1. Offsite Street and Signal Improvements, including design/engineering, right-of-way and construction management related to the following: a. Rustic Glen Drive at Margarita Road b. Margarita Road at South Project Residential c. Winchester Road at Ynez Road d. Winchester Road at Margarita Road e. Winchester Road at Jefferson Ave. f. Winchester Road at 1-15 Southbound Ramp g. Margarita Road, Complete East One Half Widening h. Murrieta Hot Springs Road at Jefferson Avenue - City of Murrieta i. Murrieta Hot Springs Road at Alta Murata Drive - City of Murrieta j. Murrieta Hot Springs Road at Margarita Road - County of Riverside k. Overland Drive at Jefferson Ave. I. Overland Drive at Ynez Road m. Overland Drive at Margarita Road n. Date Street at Ynez Road o. Date St at Service Commercial Access I, No Signal Control Needed p. Date St at North Project Residential Access Road q. Ynez Road at Service Commercial Access II, No Signal Control Needed r. Ynez Road at Service Commercial Access III, No Signal Control Needed s. Ynez Road at Service Commercial Access IV t. Date Street at Margarita Road u. Cherry/Date Streets Interchange Design Project 2. Harveston Backbone Street and Storm Drain Improvements, including design/ engineering and construction management related to the following: a. Margarita Road, complete improvements from Date Street to Santa Gertrudis Creek. b. Date Street, median and southerly one-half between Margarita Road and Northerly Entrance Road. c. Date Street, full width, Northerly Entrance to Ynez Road d. Date Street, full width, Ynez Road to 1-15. e. Ynez Road, full width, existing Ynez Road to Date Street f. Ynez Road, full width, Date Street to northerly city limits. g. Easterly Residential Access Road, full width (Harveston School Road) h. Loop Road, full width, lying adjacent to elementary school. SERVICES Maintenance of an approximately 8.5 acre lake within or in the vicinity of the District, including but not limited to water supply, chemical treatment, workboat, boat house, boat operator, spray fountain, skimming, fish replenishment, repair and replacement of lights, pumps, motors, planting and replacement of reparian plant materials, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. Maintenance of an approximately 7.5 acres of landscaped parkland located within or in the vicinity of the District, including an amphitheater, gazebo, tot lot, restroom trails, benches, picnic tables and lighting. Maintenance services include, but are not limited to, park landscaping and irrigation, fertilizing, and maintenance of amphitheater, gazebo, restroom and tot lot structures, and establishment and periodic funding of a replacement reserve for all or any portion of the foregoing. PRIOR BONDS It is intended that the District will provide funds necessary to defease the outstanding Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A, which are secured by a special tax lien on property in the District. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, bond and disclosure counsel fees and expenses, bond remarketing costs, and all other incidental expenses. 2. Administrative fees of the Authority, the City of Temecula and the Bond trustee or fiscal agent related to the District and the Bonds. 3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City of Temecula, any landowner in the District, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the Authority, the City of Temecula, any landowner in the District or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the District. EXHIBIT B TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax shall be levied and collected on all Taxable Property in the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston) ("CFD No. 01-2") each Fiscal Year in an amount determined by the CFD Administrator through the application of the appropriate Special Tax based on the procedures described below. All of the real property within CFD No. 01-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set fodh have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other similar recorded County instrument. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 01-2, including but not limited to: the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by the CFD Administrator or designee thereof or both); the costs of collecting the Special Taxes (whether by the Authority, County, City, or otherwise); the costs of remitting the Special Taxes to the Trustee for any Bonds; the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes; the costs of the Trustee (including its · legal counsel) in the discharge of the duties required of it under any Indenture; the costs of the Authority, City or designee in complying with arbitrage rebate and disclosure requirements of applicable federal and State securities laws, the Act and the California Government Code, including property owner inquiries regarding the Special Taxes; the costs associated with the release of funds from any escrow account; the costs of the Authority, City or designee related to an appeal of the Special Tax; and an allocable share of the salaries of the City staff and City overhead expense directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City or the Authority for any administrative purposes of CFD No. 01-2. "Apartment Property" means any Assessor's Parcels of Developed Property for which building permits have been issued for attached residential units which are made available for rental, but not purchase, by the general public. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Assigned Special Tax A or Assigned Special Tax B. "Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed Properly, as determined in accordance with Section C below. "Assigned Special Tax B" means the Special Tax B for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Authority" means the Temecula Public Financing Authority. "Average interest Rate" means the quotient resulting from the division of (a) the sum of the interest rates borne by the Variable Rate Bonds on each Wednesday of the previous Fiscal Year divided by (b) the number of weeks for which the Variable Rate Bonds were outstanding in such Fiscal Year, as such quotient is calculated by the CFD Administrator. This rate shall be calculated without regard to the number of Variable Rate Bonds that were outstanding during the previous Fiscal Year or at the time of calculation. "Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Board of Directors" means the Board of Directors of the Authority, acting as the legislative body of CFD No. 01-2. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued or incurred by CFD No. 01-2 under the Act. "CFD Administrator" means the Finance Director of the City, or designee thereof, responsible for determining the Special Tax required, the Average Interest Rate, and various other amounts described herein for providing for the levy and collection of the Special Taxes. "CFD No. 01-2" means Community Facilities District No. 01-2 (Harveston) of the Temecula Public Financing Authority. "City" means the City of Temecula. "Conversion Amount" means the costs of converting Variable Rate Bonds to Fixed Rate Bonds on a Conversion Date, including but not limited to underwriters or purchasers discount, legal fees and expenses, printing costs, Trustee's fees and costs, a charge for City staff related to such conversion, special tax consultant fees and expenses, appraisal fees, financial advisory fees, and other similar expenses. "Conversion Date" means any date on which any Variable Rate Bonds may be converted to Fixed Rate Bonds pursuant to the applicable Indenture for such Bonds. "County" means the County of Riverside. "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property and Public Property, for which (i) a Final Subdivision was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied and (ii) a building permit was issued after January 1, 2001, but prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. "Extraordinary Special Tax A" means a Special Tax A levied on Other Undeveloped Property as described in Section E. "Final Conversion" means the date on which the last of any Variable Rate Bonds are redeemed or converted to Fixed Rate Bonds, which date shall not be later than the 10th anniversary of the issuance of the Variable Rate Bonds subject to conversion. "Final Subdivision" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or the recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Fixed Rate Bond(s)" means any Outstanding Bond that pays at a fixed rate of interest until its principal has been fully paid. "indenture" means the indenture, trust agreement, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the Maximum Special Tax A and Maximum Special Tax B. "Maximum Special Tax A" means the maximum amount of Special Tax A, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel to satisfy the Special Tax A Requirement. "Maximum Special Tax B" means the maximum amount of Special Tax B in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel to satisfy the Special Tax B Requirement. "Non-Residential Floor Area" means the total floor area of a non-residential building(s) located on an Assessor's Parcel, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides, as determined by reference to the building permit(s) issued for that Assessor's Parcel, or if these are not available, as otherwise determined by the CFD Administrator. "One-Time Special Tax A" means a Special Tax A that may be levied on Other Undeveloped Property as described in Section F, below. "Other Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a non-residential use, except for Service Commercial Property. "Other Undeveloped Property" means all Undeveloped Property that is not Service Commercial Property. "Outstanding Bond(s)" means, as of any date, all Bonds previously issued that are outstanding under the applicable Indenture. "Park" means approximately 7.5 acres of landscaped parkland and an 8.5 acre lake located in Planning Area 3 of the Harveston Specific Plan approved on August 28, 2001. "Property Owner Association Property" means any property within the boundaries of CFD No. 01-2 that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder, to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 01-2. For Undeveloped Property, "Proportionately" means (i) under the second step of the Method of Apportionment in Section D, that the ratio of the actual Special Tax A levy per Acre of Undeveloped Property that is Service Commercial Property to $1,960 and the ratio of the actual Special Tax A levy per Acre of all Other Undeveloped Property to $3,212 is equal for all Assessor's Parcels of Undeveloped Property and that the ratio of the actual Special Tax B levy per Acre of Undeveloped Property will be equal, and (ii) under the third step of the Method of Apportionment in Section D, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax is equal for all Assessor's Parcels of Other Undeveloped Property. "Public Property" means any property within the boundaries of CFD No. 01-2 that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency. Once a parcel has been designated as Public Property, it shall retain such status permanently. "Residential Floor Area" means all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Ftoor Area shall be made by the CFD Administrator with reference to the building permit(s) issued for such Assessor's Parcel or other appropriate means selected by the CFD Administrator. Once such determination has been made for a parcel, it shall remain fixed in all future Fiscal Years.~ "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling units. "Service Commercial Property" means all property located within the area defined in Exhibit 1 except for Assessor's Parcels developed as Residential Property. "Single Family Property" means all Assessor's Parcels of Residential Property, other than Apartment Property, for which building permits have been issued for detached or attached residential units. "Special Tax" means Special Tax A or Special Tax B. "Special Tax A" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property to fund the Special Tax A Requirement, and shall include Special Taxes levied or to be levied under Sections D, E or F, below. "Special Tax B" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcels of Developed Property, or Undeveloped Property, to fund the Special Tax B Requirement, and shall include Special Taxes levied or to be levied under Sections D, E or F, below. "Special Tax A Req0irement" means that amount required in any Fiscal Year for CFD No. 01-2 to: (a) (i) pay debt service on all Fixed Rate Bonds for the calendar year that commences in such Fiscal Year, (ii) pay debt service on all Variable Rate Bonds for the calendar year that commences in such Fiscal Year, assuming a constant interest rate of 3.5% for all Variable Rate Bonds for the 2002-03 Fiscal Year levy, and assuming a constant interest rate for each Fiscal Year thereafter equal to the Average Interest Rate for the Fiscal Year immediately preceding that for which the Special Tax A Requirement is being determined; (iii) pay periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support and rebate payments on the Bonds; (iv) pay Administrative Expenses; and (v) pay any amounts required to establish or replenish any bond or interest rate reserve funds for any Outstanding Bonds; less (b) a credit for funds available to reduce the annual Special Tax levy under the Indenture, as determined by the CFD Administrator. "Special Tax B Requirement~' means that amount required in any Fiscal Year for CFD No. 01-2 to pay the estimated costs of providing services, including the salaries of City staff related to and a proportionate share of City overhead costs, for the maintenance of the Park in an amount not to exceed $206,276 for Fiscal Year 2002-2003, increasing by 1% each Fiscal Year there after. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 01o2 that are not exempt from the Special Tax pursuant to law or Section G below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section G below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section G below. "Total Floor Area" means for an Assessor's Parcel, the sum of the Residential Floor Area plus the Non-Residential Floor Area. "Trustee" means the trustee or fiscal agent under the indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Update Property" means an Assessor's Parcel of Undeveloped Property for which a building permit has been issued, but which has not yet been classified as Developed Property, Taxable Property Owner Association Property or Taxable Public Property. "Variable Rate Bond(s)" means any Outstanding Bond that is not a Fixed Rate Bond. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 01-2 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C, D, E, and F below. Developed Property shall be assigned to a Land Use Class as specified in Table 1. The Assigned Special Tax for Residential Property shall be based on the Residential Floor Area located on the Assessor's Parcel, unless it qualifies as Apartment Property, for which the Assigned Special Tax shall be based on the number of dwelling units. The Assigned Special Tax for Service Commercial Property and Other Non-Residential Property shall be based on the Acreage of the Assessor's Parcel, except that any Assessor's Parcel of Service Commercial Property that has become Residential Property shall be assigned to Land Use Classes 1 through 6, and shall no longer be considered Service Commercial Property for Assigned Special Tax or Backup Special Tax A purposes. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum SpecialTax The Maximum Special Tax A shall be the greater of (i) the amount derived by application of the Assigned Special Tax A, or (ii) the amount derived by application of the Backup Special Tax A. The Maximum Special Tax B shall be the Assigned Special Tax B. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be Maximum Special Tax A plus Maximum Special Tax B. b. Assigned Special Tax The Assigned Special Tax for Developed Property in each Fiscal Year for each Land Use Class, starting with Fiscal Year 2002-03 and for each Fiscal Year thereafter, is shown below in Table 1. TABLE 1 Assigned Special Tax Amounts for Developed Property For Fiscal Year 2002-03 Community Facilities District No. 01-2 Combined Land Assigned Assigned Assigned Use Special Tax A Special Tax B Special Tax Class Description Residential Floor Per Unit/Acre Per Unit/Acre Per Unit/Acre Area 1 Single Family 3,050 or more square $1,574 per unit $107 per unit $1,681 per unit Property feet 2 Single Family 2,650 or more, but less $1,280 per unit $107 per unit $1,387 per unit Property than 3,050 square feet 3 Single Family 2,250 or more, but less $1,146 per unit $107 per unit $1,253 per unit Property than 2,650 square feet 4 Single Family 1,850 or more, but less $892 per unit $107 per unit $999 per unit Property than 2,250 square feet 5 Single Family <1,850 square feet $483 per unit $107 per unit $590 per unit Property 6 Apartment Property Not Applicable $200 per unit $107 per unit $307 per unit 7 Service Commercial Property* Not Applicable $1,960 per $0 per Acre $1,960 per Acre Acre 8 Other Non- Residential Property Not Applicable $6,126 per $685 per Acre $6,811 per Acre Acre *Notwithstanding Table 1, any residential development occurring on Service Commercial Property shall be taxed at the rates listed under Land Use Classes 1-6, as applicable. For each Fiscal Year following Fiscal Year 2002-2003, the tax rates for Assigned Special Tax B stated above shall increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. c. Backup Special Tax A The Backup Special Tax A for Developed Property in each Fiscal Year, starting with Fiscal Year 2002-2003 and for each Fiscal Year thereafter, shall be $6,126 per Acre for Residential Property and Other Non-Residential Property, and $1,960 per Acre for Service Commercial Property. d. Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Assigned Special Tax levied on an Assessor's Parcel shall be the sum of the Assigned Special Tax levies for all Land Use Classes located on that Assessor's Parcel. The Backup Special Tax A levied on an Assessor's Parcel shall be the sum of the Backup Special Tax A levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. For purposes of calculating the Backup Special Tax A (but not the Assigned Special Tax A) for each Land Use Class under such circumstances, the Acreage assigned to each Land Use Class shall be based on the proportion of Residential Floor Area or Non- Residential Floor Area that is built for each Land Use Class as compared with the Total Floor Area built on the Assessor's Parcel. All allocations made under this section shall be determined by the CFD Administrator, and all such allocations shall be final. 2. Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2002-03 and future Fiscal Years for Undeveloped Property that is Service Commercial Property shall be $1,960 per Acre. The Maximum Special Tax for Fiscal Year 2002-03 and future Fiscal Years for Taxable Property Owner Association Property and Taxable Public Property shall be $6,126 per Acre. The Maximum Special Tax A for Fiscal Year 2002-03 and future Fiscal Years for Other Undeveloped Property shall be $6,126 per Acre plus any Extraordinary Special Tax A or One-Time Special Tax A that may be applicable. The Maximum Special Tax B for Other Undeveloped Property shall be $685 per Acre for Fiscal Year 2002-2003 and shall increase by an amount equal to 1.00% of the maximum tax rates in effect for the prior Fiscal Year. The Maximum Special Tax for each Assessor's Parcel classified as Other Undeveloped Property, shall be Maximum Special Tax A plus Maximum Special Tax B. b. Extraordinary Special Tax A and One-Time Special Tax A The Extraordinary Special Tax A and the One-Time Special Tax A, as described in Sections E and F below, are not limited by specific maximum levels, but instead may be levied at whatever levels are required to meet the objectives of Sections E and F. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the CFD Administrator shall levy the Special Tax as follows: First: Special Tax A shall be levied on each Assessor's Parcel of Developed Property at 100% of the applicable Assigned Special Tax A for each Fiscal Year to and including the Fiscal Year in which Final Conversion occurs, irrespective of the Special Tax A Requirement, in order to pay amounts described in the definition of the "Special Tax A Requirement," as well as to accumulate funds to maintain an interest rate reserve account with respect to Variable Rate Bonds established under the Indenture at a level specified in the Indenture, to pay Conversion Amounts and for the redemption of Variable Rate Bonds under the Indenture. For each subsequent Fiscal Year, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A as needed to satisfy the Special Tax A Requirement. Special Tax B shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax B as needed to satisfy the Special Tax B Requirement; Second: If additional monies are needed to satisfy the Special Tax A Requirement after the first step has been completed, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property that is Service Commercial Property at up to $1,960 per Acre and Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to $3,212 per Acre and if additional monies are needed to satisfy the Special Tax B Requirement after the first step has been completed, Special Tax B shall be levied Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to 100% of the applicable Assigned Special Tax B; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, Special Tax A shall be levied Proportionately on each Assessor's Parcel of Other Undeveloped Property at up to $6,961 per Acre; Fourth: If additional monies are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the levy of Special Tax A on each Assessor's Parcel of Developed Property whose Maximum Special Tax A is determined through the application of the Backup Special Tax A shall be increased Proportionately from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor's Parcel; Fifth: If additional monies are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property up to the Maximum Special Tax A for Taxable Property Owner Association Property; and Sixth: If additional monies are needed to satisfy the Special Tax A Requirement after the first five steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property up to the Maximum Special Tax A for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property used for private residential purposes be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 01-2. E. EXTRAORDINARY SPECIAL TAX A If at any time during a Fiscal Year the interest rate on Variable Rate Bonds exceeds the rate described in clause (a)(ii) of the definition of "Special Tax A Requirement" that was utilized to determine that Fiscal Year's Special Tax A Requirement, it may be necessary to levy an Extraordinary Special Tax A on all Other Undeveloped Property to cover any shortfall in funds available to pay interest due on Variable Rate Bonds in such Fiscal Year. Three business days prior to any interest payment date for Variable Rate Bonds, if sufficient funds are not available in a debt service or interest rate reserve account for the payment of Variable Rate Bonds under the Indenture, the CFD Administrator shall levy Special Taxes Proportionately on Assessor's Parcels classified for such Fiscal Year as Other Undeveloped Property in an aggregated amount equal to the amount of the insufficiency, and the payment of Special Taxes so levied shall be due and payable on (and will be delinquent if not paid by) the day prior to such interest payment date. Special Taxes levied under Section E shall be levied by means of direct billing to the affected property owners. F. ONE-TIME SPECIAL TAX A In any Fiscal Year up to and including the Fiscal Year in which the Final Conversion occurs, there shall be levied on each Assessor's Parcel classified in such Fiscal Year as Other Undeveloped Property a One-Time Special Tax A in an amount determined by the CFD Administrator as follows: (i) three business days prior to Final Conversion, in an amount equal to the cost of redemption of any Variable Rate Bonds that are not expected to be converted to Fixed Rate Bonds on the Final Conversion, and (ii) three business days prior to any Conversion Date in an amount equal to (a) the Conversion Amount, less (b) any amounts then available for payment of the costs of conversion of Variable Rate Bonds to Fixed Rate Bonds or such Conversion Date in an account established for such purpose under the indenture. Special Taxes levied under this Section F shall be levied by means of direct billing to the affected property owner(s). Payment of Special Taxes so levied shall be due no later than the date of Final Conversion or the Conversion Date to which the levy pertains. G. EXEMPTIONS No Special Tax shall be levied on up to 16.5 Acres of Property Owner Association Property and on up to 93.3 Acres of Public Property. The CFD Administrator will assign tax-exempt status to Assessor's Parcels in the chronological order in which such Parcels are known to the CFD Administrator to become Property Owner Association Property or Public Property. Once an Assessor's Parcel has been classified as Public Property, its tax-exempt status will be permanent, independent of its future uses. All Assessor's Parcels that have fully prepaid their Special Tax A lien pursuant to Section J are exempt from future Special Tax A levies, but shall be subject to Special Tax B levies. Property Owner Association Property or Public Property that is not exempt from Special Tax A levies under this section shall be subject to the levy of Special Tax A and shall be taxed Proportionately as part of the fifth and sixth steps, respectively, in Section D above, at up to 100% of the applicable Maximum Special Tax A for Taxable Property Owner Association Property or Taxable Public Property. H. REVIEW AND APPEAL Any taxpayer may file a written appeal of the Special Tax A or Special Tax B levied on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's property. No refunds of previously paid Special Taxes shall be made. I. MANNER OF COLLECTION The Special Tax as levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 01-2 or as otherwise determined appropriate by the CFD Administrator. For purposes of Sections E and F, the CFD Administrator shall directly bill the affected property owners for the Extraordinary Special Tax A levies and One-Time Special Tax A levies, unless an alternative mechanism has been determined by the CFD Administrator. J. PREPAYMENT OF SPECIAL TAX A The following definition applies to Section J. "Outstanding Prepayment Bonds" means, as of any date, all Bonds previously issued that are anticipated by the CFD Administrator to be outstanding under the applicable Indenture immediately after the first principal payment date for such Bonds following the then current Fiscal Year. 1. Prepayment in Full - Special Tax A The Special Tax A obligation described in Section D above with respect to any Assessor's Parcel of Developed Property, Update Property, or Undeveloped Property that is Service Commercial Property may be fully prepaid, except that a Special Tax B shall be levied on such Assessor's Parcel after the prepayment has occurred. In addition, the Special Tax A obligation of any Assessor's Parcel of Taxable Public Property and/or Taxable Property Owner Association Property may be prepaid, without a Special Tax B being levied thereafter. A prepayment may be made on an Assessor's Parcel only if there are no delinquent Special Tax levies with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax A obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.. The CFD Administrator may charge the Assessor's Parcel owner a reasonable fee for providing these figures, which must be paid by the owner of the Assessor's Parcel prior to the calculation of the prepayment amount. Prepayment must be made not less than 15 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the indenture. The Prepayment Amount (defined below) for any Assessor's Parcel of Taxable Public Property may be determined by the CFD Administrator as authorized under Sections 53317.3 and 53317.5 of the Act. However, no Special Tax A prepayment for any Assessor's Parcel of Taxable Public Property shall be allowed unless the amount of Assigned Special Tax A levies that may be imposed on Taxable Property within CFD No. 01-2 after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 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 Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be calculated as follows: Paraqraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property and Service Commercial Property that is Developed Property, compute the Assigned Special Tax A and Backup Special Tax A applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Service Commercial Property that are Undeveloped Property, compute the Maximum Special Tax A for the Assessor's Parcel to be repaid. For Assessor's Parcels of Undeveloped Property which are also classified as Update Property, compute the Assigned Special Tax A and Backup Special Tax A for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax A or Maximum Special Tax A computed pursuant to paragraph 2 by the estimated Assigned Special Tax A levies for all of CFD No. 01-2 based on the Developed Property Special Tax A levies which could be imposed in the current Fiscal Year on all expected development in CFD No. 01-2, excluding any Assessor's Parcels which have been prepaid; and (b) Divide the Backup Special Tax A computed pursuant to paragraph 2 by the estimated Backup Special Tax A levies at buildout for CFD No. 01-2 using the Backup Special Tax A amounts for the current Fiscal Year, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Outstanding Prepayment Bonds, and (if determined necessary by the CFD Administrator to effect the redemption of Bonds with such prepayment) round up to the nearest integral multiple of $5,000 to compute the amount of Outstanding Prepayment Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Prepayment Bonds to be redeemed (the "Redemption. Premium"). 6. 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 Prepayment Bonds. Under a variable- rate bond scenario, the amount needed to pay interest on the Bond Redemption Amount shall be determined by the CFD Administrator. 7. Determine the amount of the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which, has not yet been paid. 8. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Prepayment Bonds to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8 (the "Defeasance Amount"). 10. Verify the administrative fees and expenses of CFD No. 01-2, 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"). 11. If bond reserve funds for the Outstanding Prepayment Bonds, if any, are anticipated to be at or above 100% of the bond reserve requirement (as specified in the Indenture) immediately after the first principal payment date in the next Fiscal Year, the reserve fund credit shall equal the expected reduction in the bond reserve requirement, if any, associated with the redemption of Outstanding Prepayment Bonds as a result of the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if bond reserve funds are anti.cipated to be below 100% of the bond reserve requirement immediately affer the first principal payment date in the next Fiscal Year. 12. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to paragraph 11 (the "Prepayment Amount"). 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Prepayment Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 01-2. The Prepayment Amount may be insufficient to redeem an integral multiple of $5,000 of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds. As a result of the payment of the current Fiscal Year's Special Tax A levy as determined under paragraph 7 (above), the CFD Administrator shall remove the Special Tax A from the current Fiscal Year's levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Board of Directors shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax A and the release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax A shall cease. However, Special Tax B shall still be levied on such Assessor's Parcels. Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property within CFD No. 01- 2 after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Prepayment in Part - Special Tax A The Maximum Special Tax A on an Assessor's Parcel of Developed Property, Update Property or Service Commercial Property may also be partially prepaid. The amount of the prepayment shall be calculated as in Section J.1; except that a partial prepayment shall be calculated according to the following formula (provided that the partial prepayment must in any event be sufficient to, in addition to payment of all other components of the Prepayment Amount, redeem Bonds in increments of $5,000): PP=PE xF These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section J.1 F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Special Tax A. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Special Tax A shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Special Tax A, (ii) the percentage by which the Maximum Special Tax A shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Special Tax A for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Such fee must be paid prior to the calculation of the Prepayment Amount. With respect to any Assessor's Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Paragraph 13 of Section J.1. and (ii) indicate in the records of CFD No. 01-2 that there has been a partial prepayment of the Maximum Special Tax A and that a portion of the Maximum Special Tax A equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax A shal~ continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. Special Tax B shall also be levied on such Assessor's Parcel. K. TERM OF SPECIAL TAX Special Tax A shall be levied for a period not to exceed 50 Fiscal Years, commencing with Fiscal Year 2002-03. All Assessor's Parcels of Taxable Property within CFD No. 01-2 shall continue to be subject to the levy and collection of the Special Tax to satisfy Special Tax B Requirement as long as the City operates and maintains the Park. EXHIBIT 1 LEGAL DESCRIPTION SERVICE COMMERCIAL PROPERTY That certain parcel of land situated in the City of Temecula, County of Riverside, State of California, being those portions of Lots 109, 110, 120 and 121 (together with those portions of vacated Date Street, Monroe Avenue and Jackson Avenue adjoining said lots), all as shown on a Map of the Temecula Land and Water Company filed in Book 8, Page 359 of Maps, Records of San Diego County, California, together with a portion of Parcel 4 of Parcel Map No. 19677 (together with that portion of Ynez Road adjoining said Parcel 4), all as shown on a map filed in Book 135, Pages 85 and 86 of Parcel Maps, Records of Riverside County, California, described as a whole as follows: BEGINNING at the most northerly corner of said Lot 121, said corner being a point on the centedine of said Jackson Avenue; thence along said centerline South 41 ~38'09" East 1290.73 feet to the most northerly corner of said Lot 120; thence continuing along said centerline South 42~14'33" East 1290.79 feet to the most easterly corner of said Lot 120; thence continuing along said centerline South 41-,52'47" East 794.56 feet to the centerline of said Ynez Road; thence along said centerline of Ynez Road South 30~07'20" West 432.14 feet to the beginning of a tangent curve concave southeasterly and having a radius of 1675.00 feet; thence along said curve southwesterly 699.71 feet through a central angle of 23'~56'04'' to the easterly prolongation of a course in the southeasterly line of said Parcel 4 shown as "North 83"~48'37'' West" on said Parcel Map; thence radically from said curve, along said course and prolongation North 83~,48'44'' West 142.82 feet to an angle point in said southeasterly line; thence along said southeasterly line South 63~31'52" West 962.68 feet to the most southerly corner of said Parcel 4 and a point in the northeasterly line of Interstate 215; thence along said northeasterly line through the following courses: North 29~26'02" West 376.97 feet; thence North 30~35'46" West 450.40 feet; thence North 28~41 '12" West 758.78 feet; thence North 18,~40'57'' West 346.24 feet; thence North 28,~39'30" West 199.91 feet; thence North 37~o45'11" West 253.17 feet; thence North 29=~58'20'' West 449.97 feet; thence North 21 -,49'02" West 251.95 feet; thence North 28~24'39" West 519.02 feet to the northwesterly line of said Lot 121; thence along said northwesterly line North 48~o10'42'' East 1190.56 feet to the POINT OF BEGINNING. CONTAINING: 135.24 Acres, more or less. SUBJECT To all covenants, rights, rights-of-way and easements of record.