Facilities Master Plan Presentation to California State Lottery Commission May 17, 2017

Overview Complete – Santa Fe Springs District Office (DO) and Southern Distribution Center Construction – Fresno DO Preconstruction – San Diego, Inland Empire, Van Nuys, and Santa Ana DOs Under Contract – East Bay DO Property Search Continues – San Francisco District Office

Santa Fe Springs DO Operational on October 26, 2015 LEED Gold Certified - Design/Construction Certified Zero Net Energy (ZNE) for 2016 First FMP project Project schedule driven by landlords termination of existing lease Second State building certified as ZNE Annual savings in Operating Expenses vs Lease (about $17,000 for FY 2017/2018) Leased space was 8,941 SF ($28/SF) vs new space is 12,840 SF ($19/SF) – over 40% bigger for about same annual cost Lessons learned applied forward

Southern Distribution Center Operational on September 19, 2016 LEED Gold Certified – Design/Construction 2017 is ZNE Demonstration Year Annual savings in Operating Expenses vs Lease (about $10,000 for FY 2017/2018) Leased space was 48,800 SF ($8/SF) vs new space is 60,580 SF plus secured yard ($7/SF) – about 25% bigger for about same annual cost Monitoring for ZNE Certification

Central Valley / Fresno DO Under construction Moving in September 2017 LEED & ZNE - Design Project schedule driven by conditions of existing lease Anticipating approximate break even in Operating Expenses vs Lease for FY 2017/2018 Leased space was 5,640 SF ($35/SF) vs new space is 11,486 SF ($19/SF) – over 100% bigger for about same annual cost

San Diego DO Purchased the building we previously leased Design is underway for phased construction Full completion in Fall 2018 Leased space was 6,574 SF ($23/SF) vs new space is 14,586 SF ($19/SF)

Inland Empire DO Purchased in Rancho Cucamonga in April Design is underway Leased space was 7,957 SF ($19/SF) vs new space is 13,254 SF ($18/SF)

Van Nuys DO Purchasing in Chatsworth Design kicking off in June Leased space was 6,200 SF ($23/SF) vs new space is 13,380 SF ($20/SF)

Santa Ana DO Purchasing in Costa Mesa Design kicking off in July Leased space was 6,000 SF ($16/SF) vs new space is 17,233 SF ($21/SF)

East Bay DO East Bay will become South Bay Area DO Under contract in Milpitas This will be ground-up construction Leased space was 6,375 SF ($21/SF) vs new space is 10,080 SF ($23/SF)

San Francisco DO Searching for property in North Bay Area