Statewide Community Infrastructure Program A Program of the

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

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 Special Districts

Post-RDA Economic Development Cities have 5 BASIC TOOLS for Public Private Projects Special Districts (CFDs & Assessment Districts Taxes & Revenue Based Financing Economic Development & Real Estate P 3 + Infrastructure Land Use / Zoning (Higher Density, Parking) Real Estate & Property These tools often work best when used together 2

What is the Statewide Communities Infrastructure Program? • Statewide Communities Infrastructure Program (SCIP) is

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 3

Who Uses SCIP? • SCIP currently has 70 local agency members which consist primarily

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: 1) Can be part of the capital mix of debt, equity, public financing 2) Provides off balance sheet/land secured non recourse debt 3) 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 or higher • SCIP provides diversity to investors and economies of scale to its participants which ultimately translates to competitive interest rates and lower costs 4

Bob Williams SCIP Program - Mechanics Program Type Program Description Impact Fee Reimbursement Program:

Bob Williams SCIP Program - Mechanics 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

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

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

SCIP Tasks and Responsibility SCIP Task and Responsibility Schedule Task Responsibility Pass SCIP Resolution Local Agency Conducting the Proceedings CSCDA Issuing Bonds CSCDA 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 Local Agency Bond Payments (Investor Risk) Landowners 8

Case Study: SCIP Series 2014 B $10, 605, 000 CSCDA SCIP Revenue Bonds, Series

Case Study: SCIP Series 2014 B $10, 605, 000 CSCDA SCIP Revenue Bonds, Series 2014 B 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% Rocklin Two Oaks Residential Fees and Improvements 281 $14, 702 $3, 785, 000 $824 1. 45% Chula Vista Bahia Vista Residential Fees 21 $26, 146 $500, 000 $1, 467 1. 51% San Diego Vista del Sur Residential Fees and Improvements 189 $25, 316 4, 390, 000 $1, 421 1. 58% Manteca Orchard Park II Residential Fees and Improvements 72 $21, 464 1, 415, 000 $1, 204 2. 07% 9

2016 Projects Series 2016 Local Agency SCIP Program Project Est. Amount Rohnert Park University

2016 Projects Series 2016 Local Agency SCIP Program Project Est. Amount Rohnert Park University District Stand Alone CFD $10. 7 MM 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. 6 MM 2016 County of Napa Farallon Capital – Napa Pipe CFD Stand Alone CFD $16. 0 MM 2016 Diablo Water District Iron-House Sanitary District Bethel Island Improvement District Sun. Cal – Delta Cove Project Stand Alone CFD $11. 0 MM City of Fairfield City of Manteca 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 SCIP Pooled Revenue $12. 1 MM 2016 A 2016 B Total: $68. 4 MM 10

SCIP Local Agencies 11

SCIP Local Agencies 11

Contact Information California Statewide Communities Development Authority James Hamill 1700 N. Broadway, Suite 405

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 Jon Penkower 1700 N. Broadway, Suite 405 Walnut Creek, CA 94596 ph: (925) 476 -5887 jpenkower@cscda. org RBC Capital Markets Nathan Perez 2250 Hyde Street, 5 th Floor San Francisco, CA 94109 ph: (415) 962 -1480 fax: (415) 213 -5964 nperez@taussig. com John Knox 405 Howard Street San Francisco, CA 94105 ph: (415) 773 -5626 fax: (415) 773 -5759 jnknox@orrick. com Orrick, Herrington & Sutcliffe LLP Bob Williams Two Embarcadero Center Suite 1200 San Francisco, CA 94104 ph: (415) 445 -8674 fax: (415) 445 -8679 bob. williams@rbccm. com David Taussig & Associates 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 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 12