Statewide Community Infrastructure Program A Program of the California Statewide Communities Development Authority

Post-RDA Economic Development Cities have 5 BASIC TOOLS for Public Private Projects Economic Development & Real Estate Real Estate & Property Taxes & Revenue Based Financing Special Districts (CFDs & Assessment Districts P3 + Infrastructure Land Use / Zoning (Higher Density, Parking) These tools often work best when used together 2

What is the Statewide Communities Infrastructure Program? Statewide Communities Infrastructure Program (SCIP) is a pooled tax exempt bond financing program which can finance impact fees and public improvements for private developments The bonds are issued by the California Statewide Communities Development Authority (CSCDA) which is a JPA sponsored by the League of California Cities (LCC) and California State Association of Counties (CSAC) to promote bond programs of public benefit to its members Any City/County/Special District can participate in SCIP SCIP has issued $350 MM in bonds since its inception in 2003 SCIP has expanded to include stand alone CFD financings

Who Uses SCIP? SCIP currently has 70 local agency members which consist primarily of cities and special districts SCIP provides local agencies a means of offering competitive financing to all developers as a turn key solution which minimizes local agency staff time Developers use SCIP for a variety of reasons: Can be part of the capital mix of debt, equity, public financing Provides off balance sheet/land secured non recourse debt Can provide competitive advantages with respect to land acquisition costs SCIP can finance projects which range in size from $250,000 up to $20,000,000 or higher SCIP provides diversity to investors and economies of scale to its participants which ultimately translates to competitive interest rates and lower costs

SCIP Program - Mechanics Bob Williams Program Type Program Description Impact Fee Reimbursement Program: Reimburses property owners for Impact Fees collected when a Building Permit is Issued Impact Fee Pre-Funding Program: Provides advance funding of Impact Fees requirement as a condition of land entitlements Acquisition Funding: Provides funding of improvements completed by developer. Local agency administers the acquisition agreement. CFD Financing: CFDs can be funded by SCIP through CSCDA on an issue-by-issue basis Reimbursement, Pre-Funding Programs and Acquisition Funding can be combined. 5

What can be financed with SCIP? Eligible Improvements Street and Roadways Street lighting Freeway Interchanges Parking Pedestrian Malls Landscaping Sidewalks Sewer and Pipelines Storm Drainage Parks and Parkways Flood Control Bridges and Thoroughfares Water Supply Bicycle and Pedestrian Trails Gas Supply Open Space and Greenbelts

Local Agency Requirements Must be a member of CSCDA Adopt resolution consenting to use of the SCIP program Contained in SCIP manual Submit and Approve SCIP Applications Each prospective project will submit an application with a local agency contact for approval When tax-exempt bonds are issued, the local agency executes a bond closing certificate, which confirms that: The infrastructure financed through SCIP with bond proceeds is public infrastructure Property being assessed has valid entitlements Funds will not be spent in violation of federal tax law Local agency must approve Requisition of Funds for fees and/or improvements 7

SCIP Tasks and Responsibility SCIP Task and Responsibility Schedule Task Responsibility Pass SCIP Resolution Local Agency Conducting the Proceedings CSCDA Issuing Bonds Administering the District Tax Roll Lot Splits Rebate Continuing Disclosure Foreclosure CSCDA / BLX / DTA Entitlements Developers in Conjunction with Local Agency Payment of Fees or Completion of Improvements Developers Approve Requisition of Funds Bond Payments (Investor Risk) Landowners 8

Annual Debt Service / Unit Total Effective Tax Rate Case Study: SCIP Series 2014B $10,605,000 CSCDA SCIP Revenue Bonds, Series 2014B Challenge: Four separate projects located within two jurisdictions were not feasible to finance on a stand alone basis Solution: Pooled Assessment Bonds provided cost effective financing Transaction Summary Purpose: Finance Impact Fees and Improvements Total Appraised Value: $63,430,000 Overall Value-to-Lien: 8.39 Assessment Distribution by Land Use: 100% Residential Term: 30 Years Average Interest Rate: 4.5% Bond Ratings: Non-Rated Project Breakdown Local Agency Project Name Land Use Purpose Units Assessment / Unit Bond Amount Annual Debt Service / Unit Total Effective Tax Rate Rocklin Parkview II Residential Fees and Improvements 54 $10,457 $515,000 $587 1.40% Two Oaks 281 $14,702 $3,785,000 $824 1.45% Chula Vista Bahia Vista Fees 21 $26,146 $500,000 $1,467 1.51% San Diego Vista del Sur 189 $25,316 4,390,000 $1,421 1.58% Manteca Orchard Park II 72 $21,464 1,415,000 $1,204 2.07% 9

2016 Projects Series Local Agency SCIP Program Project Est. Amount 10 Rohnert Park University District Stand Alone CFD $10.7MM 2016A City of Manteca City of Brentwood City of Petaluma El Dorado Irrigation District City of Gardena Milner Terrace – Fees and Improvements Ferro Ronconi – Fees Cader Commerce – Fees The Overlook – Fees Newfield – Fees SCIP Pooled Revenue $18.6MM County of Napa Farallon Capital – Napa Pipe CFD $16.0MM Diablo Water District Iron-House Sanitary District Bethel Island Improvement District SunCal – Delta Cove Project $11.0MM 2016B City of Fairfield City of Rocklin City of Roseville City of San Diego Green Valley Village– Fees Evan Estates – Improvements The Villages – Fees and Improvements Granite Terrace – Fees Foothills American Dream – Fees & Improvements Vista Del Sur - Fees $12.1MM Total: $68.4MM 10

SCIP Local Agencies 11

Contact Information California Statewide Communities Development Authority James Hamill 1700 N. Broadway, Suite 405 Walnut Creek, CA 94596 ph: (925) 476-5644 jhamill@cscda.org California Statewide Communities Development Authority Jon Penkower 1700 N. Broadway, Suite 405 Walnut Creek, CA 94596 ph: (925) 476-5887 jpenkower@cscda.org Orrick, Herrington & Sutcliffe LLP John Knox 405 Howard Street San Francisco, CA 94105 ph: (415) 773-5626 fax: (415) 773-5759 jnknox@orrick.com RBC Capital Markets Bob Williams Two Embarcadero Center Suite 1200 San Francisco, CA 94104 ph: (415) 445-8674 fax: (415) 445-8679 bob.williams@rbccm.com Orrick, Herrington & Sutcliffe LLP Patricia L. Eichar 1120 NW Couch Street, Suite 200 Portland, OR 97209 ph: (503) 943-4860 fax: (503) 943-4801 peichar@orrick.com David Taussig & Associates Nathan Perez 2250 Hyde Street, 5th Floor San Francisco, CA 94109 ph: (415) 962-1480 fax: (415) 213-5964 nperez@taussig.com David Taussig & Associates David Taussig 5000 Birch Street, Suite 6000 Newport Beach, CA 92660 ph: (949) 955-1500 fax: (949) 955-1590 dtadavid@taussig.com Bond Logistix LLC Vo Nguyen 777 S. Figueroa St., Suite 3200 Los Angeles, CA 90017 ph: (213) 612-2205 fax: (213) 612-2499 vnguyen@bondlogistix.com