RES-2006-213RESOLUTION N0. 2ao6-.213
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM MODIFYING RESOLUTION OF
INTENTION AND APPROVING AMENDED RATE AND
METHOD OF APPORTIONMENT
WHEREAS, on July 11, 2006, the City Council (the "City Council") of the City of
Anaheim (the "City") adopted a resolution entitled "A Resolution of the City Council of the City of
Anaheim of Intention to Establish a Community Facilities District and to Authorize the Levy of
Special Taxes" {the "Resolution of Intention"), stating its intention to form a community facilities
district (the "Community Facilities District"} proposed to be named the City of Anaheim
Community Facilities District No. 06-2 (Stadium Lofts) pursuant to the Mello-Roos Community
Facilities Act of 1982 (the "Act");
WHEREAS, on August 22, 2006, the City Council opened a noticed public hearing on the
establishment of the Community Facilities District and continued the same to September 12, 2006;
WHEREAS, on this date, the City Council opened said public hearing;
WHEREAS, the rate and method of apportionment of the special tax (the "Original Rate
and Method") originally proposed to be levied within the Community Facilities District is described
in Exhibit A to the Resolution of Intention;
WHEREAS, Section 53325 of the Act provides that the legislative body of a local agency
may modify the resolution of intention by eliminating proposed facilities or services, or by changing
the rate or method of apportionment of the proposed special tax so as to reduce the maximum
special tax for all or a portion of the owners of property within a proposed community facilities
district;
WHEREAS, it has been proposed that the Original Rate and Method be modified to
eliminate all proposed Services (as defined in the Resolution of Intention) and to change the
Original Rate and Method so as to reduce the maximum special tax originally proposed to be levied
within the proposed Community Facilities District for a portion of the owners of property within the
Community Facilities District; and
WHEREAS, the City Council desires to so modify the Resolution of Intention;
NOW, THEREFORE, the City Council of the City of Anaheim does hereby resolve,
determine and order as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The Resolution of Intention is hereby modified so as to amend the Original
Rate and Method to eliminate the Services described in the Resolution of Intention and to change
the Original Rate and Method so as to reduce the maximum special tax originally proposed to be
levied within the Community Facilities District for a portion of the owners of property within the
Community Facilities District, as more particularly reflected in the Amended Rate and Method
OHS WESr:26(K)82939.1
of Apportionment of Special Tax attached hereto as Exhibit A, which is by this reference
incorporated herein.
Section 3. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Anaheim on September
12, 2006.
AYES: Mayor Pringle, Council Members Sidhu,Hernandez, Galloway, Chavez
NOES: None
ABSENT: None
ABSTAIN: Bane
Mayor
ATTEST:
C ty Clerk
OHS We'ST:26(x)82939.1 2
EXHIBIT A
AMENDED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
OHS WES'f:261~8293).l
CLERK'S CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF ANAHEIM
I, Sheryll Schroeder, City Clerk of the City of Anaheim, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the
City Council of said City duly and regularly held at the regular meeting place thereof on September
12, 2006, of which meeting all of the members of said City Council had due notice and at which a
majority thereof were present; and that at said meeting said Resolution was adopted by the
following vote:
AYES: COUNCIL MEMBERS: Galloway, Chavez, Sidhu, Hernandez, Mayor Pringle
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL, MEMBERS: None
An agenda of said meeting was posted at least 72 hours before said meeting at 200 South
Anaheim Boulevard, Anaheim, California, a location freely accessible to members of the public,
and a brief general description of said Resolution appeared on said agenda.
I further certify that I have carefully compared the same with the original minutes of said
meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct
copy of the original Resolution adopted at said meeting and entered in said minutes; and that said
Resolution has not been amended, modified or rescinded since the date of its adoption, and the same
is now in full force and effect.
Dated: september 122006
City Clerk
OH5 wesT?60082939.1 4
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF ANAHEIM COMMUNITY FACILITIES DISTRICT N0.06-2
(STADIUM LOFTS)
To the extent provided herein a Special Tax shall be levied on all Assessor's Parcels in the City of
Anaheim Community Facilities District No. 06-2 (Stadium Lofts) ("CFD No. 06-2") and collected
each Fiscal Year commencing in Fiscal Year 2007-08, in an amount determined by the Council
through the application of the procedures described below. All of the real property inCFD No. 06-2,
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 forth have the following meanings:
"Acre or Acreage" means the number of acres of 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 recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter
2.5 of Part 1 of Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
related to the administration of CFD No. 06-2: the costs of computing the Special Taxes and
preparing the annual Special Tax collection schedules (whether by the City, CFD No. 06-2,
or any designee thereof); the costs of collecting the Special Taxes (whether by the County,
the City, through foreclosure proceedings, or otherwise); the costs of remitting the Special
Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of
the duties required of it under the Indenture; the costs to the City, CFD No. 06-2 or any
designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD
No. 06-2 or any designee thereof of complying with City, CFD No. 06-2 or obligated persons
disclosure requirements associated with applicable federal and state securities laws and of the
Act; the costs associated with preparing Special Tax disclosure statements and responding to
public inquiries regarding the Special Taxes; the costs of the City, CFD No. 06-2 or any
designee thereof related to an appeal of the Special Tax; the costs associated with the release
of funds from an escrow account; attorney's fees and other costs related to commencing and
pursuing to completion any foreclosure of delinquent Special Taxes; the costs of City staff
time and reasonable overhead relating to the administration of CFD No. 06-2; and any other
costs or third party expenses estimated or advanced by the City or CFD No. 06-2 for any
other administrative purposes of CFD No. 06-2.
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page I
"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 Special Tax for each Land Use Class of Developed
Property, as determined in accordance with Section C.1 below.
"Backup Special Tax" means the Backup Special Tax applicable to each Assessor's Parcel
of Residential Property, as determined in accordance with Section C.1 below.
"Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether
in one or more series, issued by CFD No. 06-2 under the Act.
"CFD Administrator" means an official of the City who is responsible for determining the
Special Tax Requirement, providing for the levy and collection of the Special Taxes, and
other duties as set forth herein.
"CFD No. 06-2" means the City of Anaheim Community Facilities District No. 06-2
(Stadium Lofts).
"City" means the City of Anaheim.
"Council" means the City Council of the City, acting as the legislative body ofCFD No. 06-
2.
"County" means the County of Orange.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property or Taxable Public Property, for which a
building permit for construction of new building square footage was issued after January 1,
2005 and prior to March 1 of the prior Fiscal Year.
"Final Map" means (i) a final map, or portion thereof, approved by the City pursuant to the
Subdivision Map Act (California Government Code Section 66410 et seq.) that creates
individual lots or parcels for which building permits may be issued, or (ii) for condominiums,
a final map approved by the City and a condominium plan recorded pursuant to California
Civil Code Section 1352 creating such individual lots or parcels.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, 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.
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 2
"Land Use Class" means any of the classes listed in Table 1.
"Maximum Special Tax" means, with respect to an Assessor's Parcel of Taxable Property,
the Maximum Special Tax, determined in accordance with Section C.l below, that can be
levied in any Fiscal Year on such Assessor's Parcel.
"Non-Residential Floor Area" means for Non-Residential Property the total of the gross
area of the floor surfaces within the exterior wall of the building, not including space devoted
to residential dwelling units, stairwells, separate storage areas, required corridors, public
restrooms, elevator shafts, light courts, vehicle parking and areas incident thereto,
mechanical equipment incidental to the operation of such building, and covered public
pedestrian circulation areas, including atriums, lobbies, plazas, patios, decks, arcades and
similar areas, except such public circulation areas or portions thereof that are used solely for
commercial purposes. The amount of floor area shall be determined by reference to the
building permit(s) issued by the City, or if square footage is not available from this source, as
otherwise determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit(s) was issued for anon-residential use.
"Outstanding Bonds" means all Bonds which are outstanding under and in accordance with
the provisions of the Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within
the boundaries of CFD No. 06-2 that is owned by or irrevocably dedicated to a property
owner association, including any master or sub-association.
"Proportionately" means (a) with respect to the Special Tax 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; (b) with respect to the Special Tax for Taxable Property
Owner Association Property that the ratio of the actual Special Tax levy to the Maximum
Special Tax is equal for all Assessor's Parcels of Taxable Property Owner Association
Property; and (c) with respect to the Special Tax for Taxable Public Property that the ratio of
the actual Special Tax levy to the Maximum Special Taxis equal for all Assessor's Parcels
of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD
No. 06-2 that (i) is owned by or irrevocably offered for dedication to the federal government,
the State, the County, the City or any other public agency, provided however that any
property leased by a public agency to a private entity and subject to taxation under Section
53340.1 of the Act shall be taxed and classified in accordance with its use; or (ii) is
encumbered by a public utility easement making impractical its use for any purpose other
than that set forth in the easement.
"Reserve Requirement" means the reserve requirement for the Bonds as defined in the
Indenture.
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 3
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage, overhang,
patio, enclosed patio, or similar area. The amount of floor area shall be determined by
reference to the building permit(s) issued by the City, or if square footage is not available
from this source, as otherwise determined by the CFD Administrator based on the recorded
condominium plan or other available documents.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential dwelling
units.
"Special Tax" means the annual special tax to be levied in each Fiscal Year on each
Assessor's Parcel of Developed Property, Taxable Property Owner Association Property, and
Taxable Public Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required or estimated to be required in any
Fiscal Year to pay: (1) debt service and other periodic costs on the Bonds due in the calendar
year commencing in such Fiscal Year; (2) directly for the acquisition or construction of
authorized facilities of CFD No. 06-2; (3) Administrative Expenses; (4) any amount required
to increase the amount on deposit in any reserve fund established for the Bonds to the
Reserve Requirement applicable thereto; (5) for reasonably anticipated delinquent Special
Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; and
(6) the costs of remarketing, credit enhancement and liquidity facility and reserve surety fees;
less (7) a credit for funds available to reduce the annual Special Tax levy, as determined by
the CFD Administrator pursuant to the Indenture.
"State" means the State of California.
"Taxable Property" means, for each Fiscal Year, all of the property within the boundaries
of CFD No. 06-2 which is not exempt from the Special Tax pursuant to law or Section E
below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt from the
Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public
Property that are not exempt from the Special Tax pursuant to law or Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2007-08, all Taxable Property within CFD
No. 06-2 shall be classified as Developed Property (which shall be further classified as
-_
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 4
Residential Property and Non-Residential Property), Taxable Property Owner Association
Property, and Taxable Public Property and shall be subject to the Special Tax in accordance
with the rate and method of apportionment determined pursuant to Sections C and D below.
Developed Property shall be further classified as Residential Property and Non-Residential
Property.
C. MAXIMUM SPECIAL TAX
1. Developed Property
(a) Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the Assigned Special Tax or (ii)
the Backup Special Tax.
(b) Assigned Special Tax
The Assigned Special Tax for each residential unit shall be based on the
Residential Floor Area of such unit. The Assigned Special Tax for Non-
Residential Property shall be based on the amount of Non-Residential Floor
Area located on the Assessor's Parcel.
The Assigned Special Tax for each Land Use Class is shown below in Table
1.
TABLE 1
Assigned Special Tax for neveloned Property
Land
Use
Class
Description
Residential Floor Area
Assigned Special Tax
1 Residential Property > 1.,250 sq. ft. $3,429 per unit
2 Residential Property 1,100 - 1,249 sq. ft. $3,048 per unit
3 Residential Property 900 - 1.,099 sq. ft. $2,343 per unit
4 Residential Property 700 - 899 sq. ft. $1,477 per unit
5 Residential Property < 700 sq. ft. $1,307 per unit
6 Non-Residential Property Not Applicable $1.8594 per square foot of
Non-Residential Floor Area
(c) Backup Special Tax
The Backup Special Tax for each Assessor's Parcel of Residential Property
shall equal $1,999 per unit.
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 5
There shall be no Backup Special Tax levied on Non-Residential Property.
Notwithstanding the foregoing, if all or any portion of a Final Map is
subsequently changed or modified in a manner that results in fewer than 390
residential units, then the Backup Special Tax for each Assessor's Parcel of
Residential Property within the area that is changed or modified shall be a
rate per unit calculated as follows:
(1) Determine the total Backup Special Tax anticipated to apply to the
changed or modified portion of the Final Map prior to the change or
modification.
(2) The result of paragraph (a) above shall be divided by the total number
of residential units which exist in such changed or modified Final
Map area, as reasonably determined by the CFD Administrator.
(3) The result is the Backup Special Tax per unit which shall be
applicable to all Assessor's Parcels of Residential Property in such
changed or modified portion of the Final Map.
2. Taxable Property Owner Association Property and Taxable Public Property
The Maximum Special Tax for Taxable Property Owner Association Property and
Taxable Public Property shall be $139,481 per Acre.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2007-08 and for each following Fiscal Year, the CFD
Administrator shall determine the Special Tax Requirement and the Council shall levy the
Special Tax as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax as needed to
satisfy the Special Tax Requirement;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, then the levy of the Special Tax on each Assessor's Parcel of
Developed Property whose Maximum Special Tax is determined through the application of
the Backup Special Tax shall be increased in equal percentages from the Assigned Special
Tax up to the Maximum Special Tax for each such Assessor's Parcel;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, then the Special Tax shall be levied Proportionately oneach
Acre of Taxable Property Owner Association Property at up to the Maximum Special Tax for
Taxable Property Owner Association Property;
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 6
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Special Tax shall be levied Proportionately on each
Acre of Taxable Public Property at up to the Maximum Special Tax for Taxable Public
Property.
Notwithstanding the above, under no circumstances shall the Special Tax levied against any
Assessor's Parcel of Residential Property for which an occupancy permit for private
residential use has been issued 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. 06-2.
E. EXEMPTIONS
No Special Tax shall be levied on up to 417,618 building square feet of Property Owner
Association Property and 0.4264 Acres of Public Property. Tax-exempt status will be
assigned by the CFD Administrator in the chronological order in which property becomes
Property Owner Association Property or Public Property.
Property Owner Association Property that is not exempt from the Special Tax under this
section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as
part of steps three and four in Section D.1 above at up to 100% of the applicable Maximum
Special Tax for Taxable Property Owner Association Property and Taxable Public Property.
F. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct
and requesting a refund may file a written notice of appeal and refund to that effect with the
CFD Administrator not later than one calendar year after having paid the Special Tax that is
disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet
with the property owner, consider written and oral evidence regarding the amount of the
Special Tax, and decide the appeal. If the CFD Administrator's decision requires the Special
Tax be modified or changed in favor of the property owner, a cash refund shall not be made
(except for the last year of levy), but an adjustment shall be made to the next Special Tax
levy. Any dispute over the decision of the CFD Administrator shall be referred to the City
Council and the decision of the City Council shall be final. This procedure shall be exclusive
and its exhaustion by any property owner shall be a condition precedent to any legal action by
such owner.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that CFD No. 06-2 may directly bill the Special
Tax, may collect Special Taxes at a different time or in a different manner if necessary to
meet its financial obligations.
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 7
H. PREPAYMENT OF SPECIAL TAX
The Special Tax may be prepaid as described below.
The following definitions apply to this Section H:
"CFD Public Facilities" means either $7.7 million in 2006 dollars, which shall increase by
the Construction Inflation Index on July 1, 2007, and on each July 1 thereafter, or such lower
number as shall be determined by the Council concurrently with a covenant by CFD No. 06-
2, made for the benefit of the owners of Bonds, that no additional Bonds (other than
refunding Bonds issued under the Act) payable from the Special Tax will be issued by CFD
No. 06-2.
"Construction Fund" means a fund or account, however denominated, specifically
identified in the Indenture to hold funds which are available for expenditure to acquire or
construct public facilities eligible for financing by CFD No. 06-2 under the Act.
"Construction Inflation Index" means, for a Fiscal Year, the annual percentage change in
the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as
of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to
be published, the Construction Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the Engineering News-Record Building
Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously paid from the Construction Fund, (ii) moneys currently on deposit in the
Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected
to be available to finance public facilities costs.
"Outstanding Bonds" means, for purposes of this Section H, all Bonds which are deemed
to be outstanding under the Indenture after the first interest and/or principal payment date
following the current Fiscal Year.
"Reserve Fund" means the fund established under the Indenture as a reserve for the
payment of principal of, and interest and any premium on, the Bonds.
1. Prepayment in Full
The Maximum Special Tax on any Assessor's Parcel of Developed Property maybe
prepaid. The Special Tax obligation applicable to such Assessor's Parcel in CFD No.
06-2 may be fully prepaid and the obligation of the Assessor's Parcel to pay the
Special Tax permanently satisfied as described herein; provided that a prepayment
may be made only if there are no delinquent Special Taxes 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 obligation shall provide the CFD Administrator
with written notice of intent to prepay. Within 30 days of receipt of such written
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 8
notice, the CFD Administrator shall notify such owner of the Prepayment Amount
(defined below) of such Assessor's Parcel. The CFD Administrator may charge a
reasonable fee for providing this calculation.
The Prepayment Amount shall be calculated as summarized below {capitalized terms
as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
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:
Paragraph No.•
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. Compute the Maximum Special Tax for the Assessor's Parcel to be prepaid.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the
total Maximum Special Tax for the entire CFD No. 06-2 at buildout (adjusted
to reflect the reduction in Maximum Special Tax revenues from any
Assessor's Parcels which have prepaid their Special Tax obligation in full or
in part).
4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding
Bonds to compute the amount of Outstanding Bonds to be paid or redeemed
(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 Bonds to be
redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount
determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Amount").
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 9
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest payment date following the current Fiscal Year
until the earliest redemption date for the Outstanding Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current
Fiscal Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Prepayment Amount less the Future
Facilities Amount and the Administrative Fees and Expenses from the date of
prepayment until the redemption date for the Outstanding Bonds to be
redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the
amount computed pursuant to paragraph 10 (the "Defeasance Amount").
12. Verify the administrative fees and expenses of No. 06-2, 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").
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of:
(a) the expected reduction in the Reserve Requirement, if any, associated with
the redemption of Outstanding Bonds as a result of the prepayment, or (b) the
amount derived by subtracting the new Reserve Requirement in effect after
the redemption of Outstanding Bonds as a result of the prepayment from the
balance in the Reserve Fund on the prepayment date, but in no event shall
such amount be less than zero.
14. The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 11 and 12, less the amount computed pursuant
to paragraph 13 (the "Prepayment Amount").
15. From the Prepayment Amount, the amounts computed pursuant to paragraphs
4, 5, 11, and 13 shall be deposited into the appropriate fund or account
established under the Indenture and be used to redeem Outstanding Bonds or
make debt service payments thereon. The amount computed pursuant to
paragraph 7 shall be deposited into the Construction Fund. The amount
computed pursuant to paragraph 12 shall be retained by CFD No. Ob-2.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment
of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will
be retained in the appropriate fund or account established under the Indenture to be
used with the next redemption of Bonds or to make debt service payments thereon.
-___
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 10
As a result of the payment of the current Fiscal Year's Special Tax levy as
determined under paragraph 11 (above}, the CFD Administrator shall remove the
current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County
tax rolls. With respect to any Assessor's Parcel on which the Special Tax is prepaid
and permanently satisfied pursuant hereto, the Council shall cause a notice of
cancellation of special tax lien to be recorded incompliance with the Act, to indicate
the prepayment and permanent satisfaction of such Special Tax and the cancellation
of the Special Tax lien on such Assessor's Parcel.
2. Prepayment in Part
The Maximum Special Tax on any Assessor's Parcel of Developed Property maybe
partially prepaid. The amount of the prepayment shall be calculated as in Section H.1,
except that a partial prepayment shall be calculated according to the following
formula:
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1
F = the percent by which the owner of the Assessor's Parcel is partially
prepaying the Maximum Special Tax
A = the Administrative Fees and Expenses according to Section H.1
An owner of an Assessor's Parcel intending to partially prepay the Special Tax
obligation shall provide the CFD Administrator with (i) written notice of intent to
partially prepay and (ii) the percentage of the Special Tax to be prepaid. Within 30
days of receipt of such written notice, the CFD Administrator shall notify such owner
of the partial Prepayment Amount of such Assessor's Parcel. The CFD
Administrator may charge a reasonable fee for providing this calculation.
With respect to any Assessor's Parcel that is partially prepaid, CFD No. 06-2 shall
(i) distribute the funds remitted to it according to Section H.1. and (ii) indicate in the
records of CFD No. 06-2 that there has been a partial prepayment of the Special Tax
and thata portion of the Special Tax equal to the outstanding percentage (1.00 - F) of
the remaining Maximum Special Tax shall continue to be levied on such Assessor's
Parcel pursuant to Section D.
Notwithstanding the foregoing, no full or partial prepayment shall be allowed unless the
amount of the Maximum Special Tax that may be levied on Taxable Property (excluding
Taxable Property Owner Association Property and Taxable Public Property) within CFD No.
06-2 both prior to and after the proposed prepayment is at least 1.1 times the maximum
annual debt service on all Outstanding Bonds.
City of Anaheim August 30, 2006
CFD No. 06-2 {Stadium Lofts) Page I1
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty years commencing in Fiscal
Year 2007-08.
K:\CLIENTS2IANAHEIM\Platinum Triangle\Stadium Lofts\RMA\Stadium Lofts RMA 07.doc
City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page I2