AGREEMENTIoriFORMATION OF IVIELL04200S.COMMINITYTAMV riESDISTRICT NO.

20043

Indio Land Ventures, LLC, a Delaware Limited Liability Company (hereinafter referred to as "Surreal," and the City of Indio ("City") agree as follows: This project was not approved for 1484 units. SunCal has an approved project ("Terra Lap" or the "Project") for approximately 1484 residential units located within the City. Pursuant to City-approved.financial policies, :SunCal filed an applidation for-the City to form Mello-Roos Community Facilities Distiict 2004-3 ,.(the "CFTY) :and to :issue bonds -to finance for infrastructure improvements for 'the 'Project. Such policies provide for a written.agreement between the developer and the' 'City. In discussing the CFD, the parties have negotiated'4he 'mutual consideration for such,action by the City and the financial ..structure , of the special tax to becharged. Thepattiesmow havemet,and have readhed agreement as set out here and -as provided'y such policies. 2. Adoption .of CFD Formation 'and Bond Documents: City staff shall place on 'the City Donnell. agenda'for May .18, 2005, and recommend for approval, both the 'Revise& Resolution of Intention to Establish the CFD and the Resolution of Intention to Incur Bonded Indebtedness, set out in Exhibit A, attached. and incorporated. The Rate and Method:of-Apportionment for :the 'taxes .("RMA") is an exhibit to the 'Resolution of Intention and provides 'fortlome valuations .as -weltas-for a 1% 'escalator commencing 2007,08 for 5 years, such escalator to ,:be3utilized only as set -out in the RMA. The amount of this esdalator shall not serve as precedent' in any future 'agreement between the parties pursuant to approved City policies. This is not correct either. Suncal is not a party to the In consideration of the CFD formation and issuance of bonds, SunCal shall pay 2004-3. to the City, from CFD proceeds, all water capital improvement fees for:the entire Project (Phase I:and'Phase II) at the rate of $3025.25/residential unit for the final number of units (now estimated at 1484) at the time of issuance:of the Phase L bonds. When the Phase sII bonds are issued, SunCal shall be reimbursed, without Mterest, from the, proceeds of the Masi. II bond issuance for the prepayment of themater capital improvement payments. Suncal is gone and their is no successor. Unless the successor is responsible for the 4. Payment of Other City Capital Improvement Fees: debts of Indio Land Ventures. 3. Water Capital Improvement Fees: Except as to storm drain fees, SunCal shall pay all other capital impact fees for roads, parks (other than Quimby Act fees), traffic signals, and police and fire facilities at the time(s) set out in the applicable City ordinances; notwithstanding, in consideration of the benefits provided to City 1 1. Purpose of Agreement: