Agdapkt 2010-12-06 clsd and regular

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� ATTACP g21� bonds being issued by the District and Parity Bonds are expected to be issued in the future. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Parity Bonds." In the Fiscal Agent Agreement, the City directs the Fiscal Agent to establish a Reserve Fund (the "Reserve Fund") from Bond proceeds in the amount of the Reserve Requirement, which amount is available to be transferred to the Bond Fund in the event of delinquencies in the payment of the Special Taxes, to the extent of such delinquencies. The Reserve Fund is required to be maintained at the Reserve Requirement from moneys available under the Fiscal Agent Agreement. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Reserve Fund." If there are additional delinquencies after depletion of funds in the Reserve Fund, the City is not obligated to pay the Bonds or supplement the Reserve Fund. Property Subject to the Specia/ Tax. The District encompasses 33.24 acres and is located in the northeastern area of the City adjacent to the San Francisco Bay and approximately 25 miles south of San Francisco. Portions of the City in the vicinity of the District include wetlands with extensive sloughs between the bay and the developed portions of the City. Land in the District is currently owned by a single entity, R.C. Peninsula Park, LLC (the "Developer") which is planning to develop 231 single-family residential units (some of which may be affordable units not subject to the Special Tax), a hotel of up to 200 rooms, and 10,000 square feet of community serving retail space, as further described herein (the "Project"). Upon completion of the Project, approximately 9.4 acres is expected to be subject to the Special Tax, and approximately 10 acres are expected to public or homeowner's association property and exempt from a Special Tax. Additionally, a preserved marina basin comprising approximately 13.79-acres (initially subject to a Special Tax as undeveloped property, but which may subsequently be exempt as homeowners association property) is undevelopable. A portion of the land in the District is improved with dry and wet utilities, street, curbs gutters and streetlights from existing uses, and a five building office park of approximately 87,762 square feet of area. Over time, all of the existing site improvements within the District will be removed for construction of the Project. Appraised Va/ue of Property. Property in the District is security for the Special Tax. The City authorized the preparation of an appraisal report for the real property within the District, which sets forth a total bulk sale discounted value of property in the District of $45,000,000, as of October 20, 2010. The valuation assumes completion of the Improvements funded by the Bonds (not including any Parity Bonds) and accounts for the impact of the lien of the Special Tax securing the Bonds. See "THE IMPROVEMENTS." In considering the estimates of value evidenced by the appraisal, it should be noted that the appraisal is based upon a number of standard and special assumptions which affected the estimates as to value, in addition to the assumption of completion of the Improvements funded by the Bonds. The Improvements to be funded with the Bonds are designed but not yet complete. See "APPRAISAL OF PROPERTY WITHIN THE DISTRICT" and Appendix B. The appraised bulk sale valuation of property in the District is * times the $ * aggregate principal amount of the Bonds. Risks of Investment. See the section of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of special factors that should be considered, in addition to the other matters set forth herein, in considering the investment quality of the Bonds. ' Preliminary, subject to change. -3-