Agdapkt 2010-12-06 clsd and regular

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� �� ATTAC P age1� Bond Terms. The Bonds will be dated as of and bear interest from the date of delivery thereof at the rate or rates set forth on the cover page of this Official Statement. Interest on the Bonds is payable on March 1 and September 1 of each year (each an "Interest Payment Date"), commencing March 1, 2011. The Bonds will be issued without coupons in denominations of $5,000 or any integral multiple thereof. Registration of Ownership of Bonds. The Bonds will be issued only as fully registered bonds in book-entry form, registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). Ultimate purchasers of Bonds will not receive physical certificates representing their interest in the Bonds. So long as the Bonds are registered in the name of Cede & Co., as nominee of DTC, references herein to the Owners will mean Cede & Co., and will not mean the ultimate purchasers of the Bonds. Payments of the principal, premium, if any, and interest on the Bonds will be made directly to DTC, or its nominee, Cede & Co. so long as DTC or Cede & Co. is the registered owner of the Bonds. Disbursements of such payments to DTC's Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of DTC's Participants and Indirect Participants, as more fully described herein. See "APPENDIX F– BOOK-ENTRY SYSTEM." Use of Proceeds. Proceeds of the Bonds and Parity Bonds will primarily be used to finance a portion of the costs of acquiring and constructing certain public infrastructure improvements (the "Improvements," as described herein), including through the payment of certain development impact and off-site infrastructure impact fees related thereto. The Improvements consist generally of roadway, potable and re-use water, sanitary sewer, storm water, parks and other infrastructure improvements necessary for development of property within the District, as well acquisition of easements and payment of certain development related fees. Construction of the Improvements by the Developer (described herein) is expected to commence in early 2011. The cost of a portion of the improvements will be reimbursed by the proceeds of the Bonds and by Parity Bonds expected to be issued in the future, and the Developer is required to fund any remaining shortfall. See "THE IMPROVEMENTS." Proceeds of the Bonds will also be used to establish a reserve fund (described below) available for payment on the Bonds, to provide capitalized interest until , 2013, to provide funds for initial Administrative Expenses and to pay District formation costs and costs of issuance of the Bonds. Source of Payment of the Bonds. The Bonds are payable from special taxes (the "Special Tax" or "Special Taxes"), net of certain administrative costs, which are to be levied by the City on taxable real property within the boundaries of the District. The Bonds are also payable from the proceeds of any foreclosure actions brought following a delinquency in payment of the Special Taxes, and from amounts held in certain funds and accounts pursuant to the Fiscal Agent Agreement, including a reserve fund, all as more fully described herein. The Specia� Tax applicable to each taxable parcel in the District will be levied and collected according to the tax liability determined by the City Council through the application of a rate and method of apportionment of Special Tax for the District (the "Special Tax Formula") which has been approved by the City. The Special Tax Formula is set forth in APPENDIX A hereto. The Special Taxes represent liens on the parcels of land subject to a Special Tax and failure to pay the Special Taxes could result in proceedings to foreclose the delinquent property. The Special Taxes do not constitute the personal indebtedness of the owners of taxed parcels. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Special Tax Methodology" and "APPENDIX A— RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX." The maximum authorized indebtedness for the District is $17 million; the Bonds are the first series of -2-