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Reso 1990-587 - Approving Official Statement
} RESOLUTION NO. -_10 7 RESOLUTION APPROVING OFFICIAL STATEMENT SHASTA VIEW EXTENSION ASSESSMENT DISTRICT NO. 1990-2 The City Council of the City of Redding resolves: As a part of the proceedings for the sale of Series A improvement bonds in Shasta View Extension Assessment District No. 1990-2, City of Redding, Shasta County, California, this Council hereby approves the Official Statement dated December 4, 1990, and a Final Official Statement derived substantially therefrom. Distribution of the Official Statement and the Final Official Statement is hereby authorized. This Official Statement is final except for certain information which will not be known until the time of sale and is therefore "deemed final" within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. The Mayor is authorized to sign the Official Statement and the Final Official Statement. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Redding, Shasta County, California, at a regular meeting thereof, held on the 4th day of December, 1990. AYES: COUNCILMEMBERS Arness, Fulton, Moss & Dahl NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS Buffum ETHEL A. NICHOLS, City Clerk, City of Redding, Shasta County, California -yC �} c By C! Q ORIGINAL r ti • • PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 4, 1990 NEW ISSUE In the opinion of Sturgis, Ness, Bmnsell&Sperry,Emeryville, California assuming continuing compliance with the provisions of the Internal Revenue Code of 986 as amended (the "1986 Code"), as described herein, the interest on the Bonds is not includable in the gross income of the owners thereof for Federal income tax purposes. Interest on the Bonds m _be included in the calculation for certain taxes, includingthe alternative minimum tax of corporations.See"TAX EXEMPTION"herein for certain provisions of the 1986 Codthat may affect the tax treatment of interest on the Bonds for certain Bondholders. Interest on the Bonds will be exempt from State of California personal income taxes. See"TAX EXEMPTION"herein. $1,719,345.22 CITY OF REDDING SHASTA VIEW EXTENSION ASSESSMENT DISTRICT NO. 1990-2, SERIES A (SHASTA COUNTY, CALIFORNIA) LIMITED OBLIGATION IMPROVEMENT BONDS Dated: December 18,1990 Due: September 2,as shown below The acquisition and construction of the impprpvements will be undertaken as authorizeunder the rovis- ions 9f the Municipal Improvement Act o 1913(Division 12 of the Californiaand Highways.Code . The Bonds are issued pursuant to the provisions of the Improvement Bond Act of1915(Division of said e). The Bonds are issued only as fully re istered Bonds in the denomination of$5,Q00 or any integral multiple thereof,except for one Bond due m1992 which will include the amount by which the principal amount of the issue exceeds the largest integral multiple of$5,000 contained therein. Interest is payableon March 2, 1992 and semi- annually therealter op March 2 and September 2 pf each year. Principal of and premium,if any,on the hon4is,will be payable at maturity or at an earlier redemption date upon presentation by the registered owner or his duly authorized representative at U.S.Trust Company of California N.A. Los Angeles,California the Registrar,Trans- fer Agent and Paying Agent. Interest on the Bonds n$payable by Check or-draft mailed to the regicttered owners thereof as of the 15th day immediately preceding the is payment date. The Bonds are subject to redemption on any March 2 or September,2 in advance of their fixed maturity date upon giving 30 days prior notice and upon payment of the�p m n a1 and interest.accrued thereon to the date o redemption,plus a redemptionpremium of three percent 3% Qthe remaining principal amount of the Bonds Q g to be redeemed. The Bonds may be refunded pursuant toteRefunding Act of 1984 for 1915 Act Improvement Bonds. Under the rovisions of the Improvement Bond Act of 1915,installments of princisal and interest sufficient to meet annual debt service on the Bonds sall be included on the regular county fax bills for parcels of pro erty against which there are unpaid assessments. These annual installments are to be paid into the Redemption Fund, to be held by the CityTreasurerand used to pay debt service on the Bonds as it becomes due. CITY WILL HDELINQUENCY DUTYY NLOYTO TRANSFER INTO THE OF FUND THESAMOUNTO1 THE DELINQUENCY OUT OF THE RESERVE FUND. THIS DUTY OF THE CITY IS CONTINUING DURING THE PERIOD OF DELINQUENCY ONLY TO THE EXTENT OF FUNDS AVAILABLE FROM THE RESERVE FUND UNTIL REINSTATEMENT,REDEMPTION OR SALE OF THE DELINQUENT PROPERTY. THERE IS NO ASSURANCE THAT FUNDS WILL BE AVAILABLE FROM THE RESERVE FUND FOR THIS PURPOSE AND IF DURING THE PERIOD OF DELINQUENCY THERE ARE INSUFFICIENT AVAILABLE FUNDS,A DELAY OCCUR IN PAYMENTS TO T OWNERS OF THE BONDS. To provide funds for paymentof the Bonds and the interest thereon as a result of any delinquent install- ments, the City will establish a speciaReserve Fund and deposit therein Bond proceeds in the amount of seven percent 7%) of the aggregate principal amount of the Bonds. Additionally,theCity has covenanted to initiate judicial foreclosure m The event of a delinquency by October 1 following such deinquency. The Bonds Are not a general obligation of the City of Redding. Neither the faith and credit nor the taxing ower of the City, the State of California or any political subdivision thereof, is pledged to the payment of the Bonds. The information setforth in this Official Statement, including information in the section herein entitled "Bondowners'Risks",shoulbe read m its entirety. MATURITY SCHEDULE Due Interest Due Interest Due Interest Sept.2 Amount Rate Sept.2 Amount Rate Sept.2 Amount Rate 1992 $ ,000 % 1999 $ ,000 % 2006 $ ,000 % 1993 ,000 2000 ,000 2007 ,000 1994 ,000 2001 ,000 2008 ,000 1995 ,000 2002 ,000 2009 ,000 1996 ,000 2003 ,000 2010 ,000 1997 ,000 2004 ,000 2011 ,000 1998 ,000 2005 ,000 PRICE: 100%(Plus accrued interest) The Bonds are offered when as and if issued,subject to approval as to their legalityby St ,Ness, nnsell &Sperry,Emeryville, Cahjornia(the Bond Counsel"). The Bonds are expected to be available for delivery on or about December 18 1990, in New York, New York. • • ' THIS PAGE INTENTIONALLY LEFT BLANK • • CITY OF REDDING SHASTA COUNTY,CALIFORNIA Mayor and City Council Nancy Buffum,Mayor Mike Dahl,Vice Mayor Carl Arness Lee D. Fulton,M.D. Charles Moss City Staff Robert M.Christofferson,City Manager Peggie Linville,City Treasurer Linda R.Downing,Director of Finance Robert W.Galusha,Director of Public Works Randall A.Hayes,City Attorney Ethel A.Nichols,City Clerk Bond Counsel Sturgis,Ness,Brunsell&Sperry Emeryville,California Transfer Agent.Registrar and Payine Agent Bankers Trust Company of California San Francisco, California Engineer of Work Sharrah Dunlap&Associates Redding,California Underwriter M.L.Stern& Co.Inc. Beverly Hills,California • • THIS PAGE INTENTIONALLY LEFT BLANK • S No dealer,broker,salesman, or other person has been authorized by the City of Redding or the Underwriter to give any information or to make representations,other than those contained herein, and,if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds described herein by any person in any jurisdiction in which it is unlawful for such a person to make such offer, solicitation or sale. The information set forth herein has been compiled by M.L. Stern & Co. Inc. and obtained from the City and from certain other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness. Neither this information nor any statement which may have been made orally or in writing is to be construed as a contract with the purchasers of any of the Bonds to be presently issued. The summaries and references to any Code, Act, or Indenture and to other statutes and documents in this Official Statement do not purport to be comprehensive or definitive, and are qualified in their entireties by reference to each statute and document. The information herein is subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the recitals herein. All statements made herein are made as of December 4, 1990, the date of this Official Statement, except statistical information or other statements where some other date is indicated in the text. The Bonds will not be rated. The Bonds are exempt from registration pursuant to the Securities Act of 1933,as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended. The Bonds will not be listed on any stock or other securities exchange. Neither the Securities and Exchange Commission nor any other federal, state, or other governmental entity or agency will have passed upon the accuracy or adequacy of the Official Statement or approved the Bonds for sale. IN CONNECTION WITH THIS BOND OFFERING, THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS DESCRIBED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS DESCRIBED HEREIN TO CERTAIN DEALERS AND DEALER BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER • • THIS PAGE INTENTIONALLY LEFT BLANK • • TABLE OF CONTENTS INTRODUCTORY STATEMENT 1 THE BONDS 2 Purpose of the Bonds 2 Authority for Issuance 2 Description of the Bonds 3 Transfer and Exchange 3 Mutilated,Lost or Stolen Bonds 4 Optional Redemption and Prepayment of Bonds 4 Refunding Bonds 4 Disposition of Surplus from the Improvement Fund 4 Security for the Bonds 5 Limited Obligation of the City Upon Delinquency 5 Articles XIII A and XIII B of the California Constitution 6 Reserve Fund 6 Covenant to Commence Superior Court Foreclosure 8 Price Realized Upon Foreclosure 8 Priority of Lien 9 Arbitrage Covenant 9 Debt Service Schedule 10 SPECIAL RISK FACTORS 11 General 11 Limited Obligation of the City Upon Delinquency 11 Property Ownership 11 Bankruptcy 12 No City Obligation 12 Factors Which May Affect Land Development and Property Values 12 Ballot Initiatives 12 Other Indebtedness 13 Estimated Land Values 13 Loss of Tax Exemption 13 THE ASSESSMENT DISTRICT 14 Description of the District 14 Property Ownership 14 District Valuation 15 Project Description 15 Statement of Method of Determining Benefit 15 Tax Delinquencies and Prior Assessment Liens 18 MISCELLANEOUS 18 Legal Opinion 18 No Litigation 19 No Rating 19 Underwriting 19 Additional Information 19 APPENDIX A-Assessment District Parcel Data APPENDIX B-Assessment Diagram APPENDIX C-Appraisal Excerpts APPENDIX D-City Data • . t THIS PAGE INTENTIONALLY LEFT BLANK • • INTRODUCTORY STATEMENT THIS INTRODUCTION DOES NOT PURPORT TO DESCRIBE IN DETAIL ALL PERTINENT MATTERS RELATING TO THE BONDS, THE PROJECT, THE DISTRICT, PROPOSED DEVELOPMENT OR PROPERTY OWNERSHIP. THIS INTRODUCTORY STATEMENT IS SUBJECT IN ALL RESPECTS TO THE MORE COMPLETE INFORMATION IN THIS OFFICIAL STATEMENT, INCLUDING THE COVER PAGE AND APPENDICES HERETO. Purpose Proceeds from the City of Redding, Shasta View Extension Assessment District No. 1990-2, Series A Limited Obligation Improvement Bonds (the 'Bonds"), will be used to finance the acquisition of completed public improvements, together with incidental expenses (including bond issuance costs), as more fully described in the section herein entitled "THE ASSESSMENT DISTRICT - The Project". The methodology used by the Assessment Engineer to apportion the assessment is described under the heading "THE ASSESSMENT DISTRICT-Method of Assessment Spread". Security for the Bonds The Bonds are issued upon and secured by the unpaid assessments and, together with interest thereon, constitute a trust fund for the redemption and payment of the principal of the Bonds and the interest thereon. All the Bonds, including principal and interest, are secured by the monies in the Redemption Fund created pursuant to the assessment proceedings and by the unpaid assessments and are payable exclusively out of the Redemption Fund. The unpaid assessments represent fixed liens on the parcels of land assessed under the proceedings.They do not,however,constitute the personal indebtedness of the owners of said parcels. Under the provisions of the Improvement Bond Act of 1915, installments of principal and interest sufficient to meet annual debt service on the Bonds are to be included on the regular County of Shasta property tax bill sent to each owner of property against which there is an unpaid assessment.These annual installments are to be paid into the Redemption Fund which will be held by the City Treasurer and used to pay Bond principal and interest as the same shall become due. The installments billed against the assessed property each year represent the total principal and interest on the Bonds coming due that year. A reserve fund in the amount of seven percent (7%) of the principal amount of Bonds issued (the "Reserve Fund") will be established from Bond proceeds. The Reserve Fund will be a source of available funds to advance to the Redemption Fund in the event of delinquent assessment installments. Additionally, the City has covenanted to institute judicial foreclosure proceedings no later than October 1 in any year following such delinquency and thereafter to prosecute diligently to completion court foreclosure proceedings upon the lien of any and all delinquent unpaid assessments and interest. If a delinquency occurs in the payment of any assessment installment, the City has a duty only to transfer into the Redemption Fund the amount of the delinquency out of the Reserve Fund. This duty of the City is continuous during the period of delinquency only to the extent of funds available from the Reserve Fund, until reinstatement, redemption or sale of the delinquent property.There is no assurance that funds will be available for such purpose and if, during the period of delinquency, there are insufficient monies in the Reserve Fund, a delay may occur in payments to the owners of the Bonds.If there are additional delinquencies after depletion of funds in the Reserve Fund, the City is not obligated to transfer into the Redemption Fund the amount of such delinquencies out of any other available monies of the City. THE CITY'S LEGAL RESPONSIBILITIES WITH RESPECT TO SUCH DELINQUENT INSTALLMENTS ARE LIMITED TO ADVANCING THE AMOUNT THEREOF SOLELY FROM ANY AVAILABLE MONIES IN THE RESERVE FUND AND TO UNDERTAKING JUDICIAL FORECLOSURE PROCEEDINGS TO RECOVER SUCH DELINQUENCIES AS COVENANTED BY THE CITY. 1 • • The Bonds are not general obligations of the City, County, the State of California or any political subdivision thereof and neither the City nor the State nor any political subdivision thereof has pledged its full faith and credit or taxing power for the payment of the Bonds. For a more complete description of the above, see the sections under the heading "THE BONDS" entitled "Security for the Bonds","Reserve Fund"and"Covenant to Commence Superior Court Foreclosure"herein. The District The Assessment District proceedings are being conducted pursuant to the Municipal Improvement Act of 1913 and Resolution of Intention No.90-207,approved by the City Council on May 1, 1990. The total assessment for Phase I and Phase II of the work as revised and confirmed by the City, is$1,957,928.27.The amount of Phase I assessments remaining unpaid are $1,719,345.62, and are represented by the Bonds of this Series A issue. No date has been set for the sale of the Phase II, Series B Bonds; see "THE ASSESSMENT DISTRICT -. The Project"for a further discussion of the two phases of work. Shasta View Extension Assessment District No. 1990-2, (the"District") is composed of approximately 310 acres of land consisting of 156 single-family residential lots and six larger, presently unsubdivided acreage parcels. The District is located approximately three miles southeast of the center of the City of Redding and about one and one-half miles northwest of the Redding Municipal Airport. Bondowners Risks For a discussion of certain of the investment qualities of this issue, refer to the section herein entitled "SPECIAL RISK FACTORS". Information contained in this Official Statement does not purport to be comprehensive or definitive. All references to the Bonds and the Project are qualified in their entirety by reference to the Engineer's Report and to the City's resolutions setting forth the terms and descriptions thereof. THE BONDS Purpose of the Bonds Proceeds from the sale of the Bonds will be used to finance the acquisition of public improvements, incidental expenses and issuance costs, all as described in the Section entitled "THE ASSESSMENT DISTRICT - The Project". Authority for Issuance The improvement proceedings for the District were initiated by adoption of the Resolution of Intention No.90- 207 by the City Council (the "Council") of the City of Redding on May 1, 1990, and were conducted pursuant to Division 12 of the California Streets and Highways Code, the Municipal Improvement Act of 1913 (the "1913 Act"). The Bonds are authorized pursuant to a resolution providing for issuance of the Bonds (the "Resolution of Issuance") adopted by the Council on December 4, 1990. The Bonds,which are secured by and represent the unpaid assessments levied against private property in the District, are issued pursuant to the provisions of the Improvement Bond Act of 1915(the"Bond Law"or the"1915 Act"). The Assessment Engineer prepared a written report (the "Engineer's Report") which contains, among other things, the list of improvement costs and the amount of the assessment to be levied against the parcels in the District. The assessment was levied on the basis of the special benefit to be derived by such parcels from the improvements. (See"THE ASSESSMENT DISTRICT-Method of Assessment Spread"herein.) 2 II • PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 4, 1990 NEW ISSUE In the opinion of Sturgis, Ness, Brunsell&Sperry Emeryville, California assuming continuing compliance with the provisions of the Internal Revenue Code of.1986, as amended (the "1986 Code"), as described herein, the interest on the Bonds is not includable in the gross income of the owners thereof for Federal income tax purposes. Interest on the Bonds may be included in the.calculation for certain taxes, including the alternative minimum tax of corporations.See"TAX EXEMPTION"herein for certain provisions of the 1986 Code that may affect the tax treatment of interest on the Bonds for certain Bondholders. Interest on the Bonds will be exempt from State of California personal income taxes. See"TAX EXEMPTION"herein. $1,719,345.22 CITY OF REDDING SHASTA VIEW EXTENSION ASSESSMENT DISTRICT NO. 1990-2, SERIES A (SHASTA COUNTY, CALIFORNIA) LIMITED OBLIGATION IMPROVEMENT BONDS Dated: December 18,1990 Due: September 2,as shown below The acquisition and construction 9f the impproyements will be undertaken as authorized under thu rovis- ions of the Municipal Improvement Act of 1913(Division 12 of the CaliforniaStreets and HighwaysCoe . The Bonds are issued pursuant to the provisions of the Improvement Bond Act ota1915(Division or said C e). The Bonds are issued only as fully registered Bonds in the denomination of$5,000 or any integral multiple thereof,except for one Bond due in 1992 which will include theamount by which the principal amount of the issue exceeds the largest integral multiple of$5,000 contained therein. Interest is payableon March 2, 1992 and semi- annually thereafter op March 2 and September 2 pf each year. Principal of and premium,if any,on the bonds,will be payable at maturity or at an earlier redemption date upon presentation by the registered owner or his duly authorized representative at U.S.Trust Company of California NPA. Los Angeles,California the Registrar,Trans- fer Agent and Paying Agent. Interest on the Bonds is payable by check or draft mailed to the registered owners thereof as of the lStfl day immediately preceding the interest payment date. The Bonds are subject to redemption on any March 2 or,September,2 in advance of their fixed maturity date upon ving 30 days prior notice and upon payment of thep� mcipal and Interest accrud thereon to the date o redemption plus a redemption premium of three percent((3`7o Q thhe remaining principalamount of the Bonds to be redeemed. The Bonds may be refunded pursuant to the I etundnng Act of 1984 for 1915 Act Improvement Bonds. t Under the provisions of the Improvement Bond Act of 1915,installments of principal and interest sufficient to meet annual debt service n the Bonds shall be included on the regular countyfax bills f9r Larcels o(property against which there,are unpaid assessments. These annual installments are to be aid ito the Redemption Fund, to be held by te CityTreasurerand used to pay debt service on the Bonds as it becomes due. CITY WILL DELINQUENCY AVE A DUTYUTONLLOCCURS TO TRANSFER INTO THE OF FUNDNTHESAMOUNT OI THE DELINQUENCY OUT OF THE RESERVE FUND. THIS DUTY OF THE CITY IS CONTINUING DURING THE PERIOD OF DELINQUENCY ONLY TO THE EXTENT OF FUNDS AVAILABLE FROM THE RESERVE FUND UNTIL REINSTATEMENT, REDEMPTION OR SALE OF THE DELINQUENT PROPERTY. THERE IS NO ASSURANCE THAT FUNDS WILL BE FROM THE RESERVE FUND FOR THIS PURPOSE DELAYMAY OCCUR IN PAYMENTS TO THEUOWNNERS OF THE BONDSFICIENT AVAILABLE FUNDS,A To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent install- ments, the City will establish a special Reserve Fund and deposit therein Bond proceeds in the amount of seven percent 17%) of the,aggregate principal amount of the Bonds. Additionally,theCity has covenanted to initiate judicial ores osure in the event of a delinquency by October 1 following such deinquency. The Bonds are not a general obligation of the City of Redding. Neither the faith and credit nor the taxing power of the City, the State o California or any political subdivision thereof, is pledged to the payment of the Bonds. The information set forth in this Official Statement, including information in the section herein entitled "Bondowners'Risks",should be read in its entirety.. MATURITY SCHEDULE Due Interest Due Interest Due Interest Sept.2 Amount Rate Sept.2 Amount Rate Sept.2 Amount Rate 1992 $ ,000 % 1999 $ ,000 % 2006 $ ,000 % 1993 ,000 2000 ,000 2007 ,000 1994 ,000 2001 ,000 . 2008 ,000 1995 ,000 2002 ,000 2009 ,000 . 1996 ,000 2003 ,000 2010 ,000 1997 ,000 2004 ,000 2011 ,000 1998 ,000 2005 ,000 PRICE: 100%(Plus accrued interest) The Bonds are offered when as and if issued,subject to approval as to their legalityby Stuiis,Ness,Bnnnscll &SSperry,Emeryville, California(the Bond Counsel"). The Bonds are expected to be available for delivery on or about December 18, 1990, in New York, New York. • r r.Id. THIS PAGE INTENTIONALLY LEFT BLANK • S CITY OF REDDING SHASTA COUNTY,CALIFORNIA Mayor and City Council Nancy Buffum,Mayor Mike Dahl,Vice Mayor Carl Arness Lee D. Fulton, M.D. Charles Moss City Staff Robert M.Christofferson,City Manager Peggie Linville,City Treasurer Linda R.Downing,Director of Finance Robert W.Galusha, Director of Public Works Randall A.Hayes,City Attorney Ethel A.Nichols,City Clerk Bond Counsel Sturgis,Ness,Brunsell&Sperry Emeryville,California Transfer Agent.Registrar and Paving Agent Bankers Trust Company of California San Francisco,California Engineer of Work Sharrah Dunlap&Associates Redding,California Underwriter M.L.Stern& Co.Inc. Beverly Hills,California • • THIS PAGE INTENTIONALLY LEFT BLANK • No dealer,broker,salesman, or other person has been authorized by the City of Redding or the UndensTiter to give any information or to make representations, other than those contained herein, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds described herein by any person in any jurisdiction in which it is unlawful for such a person to make such offer, solicitation or sale. The information set forth herein has been compiled by M.L. Stern & Co.Inc. and obtained from the City and from certain other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness. Neither this information nor any statement which may have been made orally or in writing is to be construed as a contract with the purchasers of any of the Bonds to be presently issued. The summaries and references to any Code, Act, or Indenture and to other statutes and documents in this Official Statement do not purport to be comprehensive or definitive, and are qualified in their entireties by reference to each statute and document. The information herein is subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the recitals herein. All statements made herein are made as of December 4, 1990, the date of this Official Statement, except statistical information or other statements where some other date is indicated in the text. The Bonds will not be rated. The Bonds are exempt from registration pursuant to the Securities Act of 1933,as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended. The Bonds will not be listed on any stock or other securities exchange. Neither the Securities and Exchange Commission nor any other federal, state, or other governmental entity or agency will have passed upon the accuracy or adequacy of the Official Statement or approved the Bonds for sale. IN CONNECTION WITH THIS BOND OFFERING, THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS DESCRIBED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS DESCRIBED HEREIN TO CERTAIN DEALERS AND DEALER BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. • • THIS PAGE INTENTIONALLY LEFT BLANK • • TABLE OF CONTENTS INTRODUCTORY STATEMENT 1 THE BONDS 2 Purpose of the Bonds 2 Authority for Issuance 2 Description of the Bonds 3 Transfer and Exchange 3 Mutilated,Lost or Stolen Bonds 4 Optional Redemption and Prepayment of Bonds 4 Refunding Bonds 4, Disposition of Surplus from the Improvement Fund 4 Security for the Bonds 5 Limited Obligation of the City Upon Delinquency 5 Articles XIII A and XIII B of the California Constitution 6 Reserve Fund 6 Covenant to Commence Superior Court Foreclosure 8 Price Realized Upon Foreclosure 8 Priority of Lien 9 Arbitrage Covenant 9 Debt Service Schedule 10 SPECIAL RISK FACTORS 11 General 11 Limited Obligation of the City Upon Delinquency 11 Property Ownership 11 Bankruptcy 12 No City Obligation 12 Factors Which May Affect Land Development and Property Values 12 Ballot Initiatives 12 Other Indebtedness 13 Estimated Land Values 13 Loss of Tax Exemption 13 THE ASSESSMENT DISTRICT 14 Description of the District 14 Property Ownership 14 District Valuation 15 Project Description 15 Statement of Method of Determining Benefit 15 Tax Delinquencies and Prior Assessment Liens 18 MISCELLANEOUS 18 Legal Opinion 18 No Litigation 19 No Rating 19 Underwriting 19 Additional Information 19 APPENDIX A-Assessment District Parcel Data APPENDIX B-Assessment Diagram APPENDIX C-Appraisal Excerpts APPENDIX D-City Data • • THIS PAGE INTENTIONALLY LEFT BLANK • INTRODUCTORY STATEMENT THIS INTRODUCTION DOES NOT PURPORT TO DESCRIBE IN DETAIL ALL PERTINENT MATTERS RELATING TO THE BONDS, THE PROJECT, THE DISTRICT, PROPOSED DEVELOPMENT OR PROPERTY OWNERSHIP. THIS INTRODUCTORY STATEMENT IS SUBJECT IN ALL RESPECTS TO THE MORE COMPLETE INFORMATION IN THIS OFFICIAL STATEMENT, INCLUDING THE COVER PAGE AND APPENDICES HERETO. Purpose Proceeds from the City of Redding, Shasta View Extension Assessment District No. 1990-2, Series A Limited Obligation Improvement Bonds (the "Bonds"), will be used to finance the acquisition of completed public improvements, together with incidental expenses (including bond issuance costs), as more fully described in the section herein entitled "THE ASSESSMENT DISTRICT - The Project". The methodology used by the Assessment Engineer to apportion the assessment is described under the heading "THE ASSESSMENT DISTRICT-Method of Assessment Spread". Security for the Bonds The Bonds are issued upon and secured by the unpaid assessments and, together with interest thereon, constitute a trust fund for the redemption and payment of the principal of the Bonds and the interest thereon. All the Bonds, including principal and interest, are secured by the monies in the Redemption Fund created pursuant to the assessment proceedings and by the unpaid assessments and are payable exclusively out of the Redemption Fund. The unpaid assessments represent fixed liens on the parcels of land assessed under the proceedings.They do not,however,constitute the personal indebtedness of the owners of said parcels. Under the provisions of the Improvement Bond Act of 1915, installments of principal and interest sufficient to meet annual debt service on the Bonds are to be included on the regular County of Shasta property tax bill sent to each owner of property against which there is an unpaid assessment.These annual installments are to be paid into the Redemption Fund which will be held by the City Treasurer and used to pay Bond principal and interest as the same shall become due. The installments billed against the assessed property each year represent the total principal and interest on the Bonds coming due that year. A reserve fund in the amount of seven percent (7%) of the principal amount of Bonds issued (the "Reserve Fund") will be established from Bond proceeds. The Reserve Fund will be a source of available funds to advance to the Redemption Fund in the event of delinquent assessment installments. Additionally, the City has covenanted to institute judicial foreclosure proceedings no later than October 1 in any year following such delinquency and thereafter to prosecute diligently to completion court foreclosure proceedings upon the lien of any and all delinquent unpaid assessments and interest. If a delinquency occurs in the payment of any assessment installment, the City has a duty only to transfer into the Redemption Fund the amount of the delinquency out of the Reserve Fund. This duty of the City is continuous during the period of delinquency only to the extent of funds available from the Reserve Fund, until reinstatement, redemption or sale of the delinquent property.There is no assurance that funds will be available for such purpose and if, during the period of delinquency, there are insufficient monies in the Reserve Fund, a delay may occur in payments to the owners of the Bonds.If there are additional delinquencies after depletion of funds in the Reserve Fund, the City is not obligated to transfer into the Redemption Fund the amount of such delinquencies out of any other available monies of the City. THE CITY'S LEGAL RESPONSIBILITIES WITH RESPECT TO SUCH DELINQUENT INSTALLMENTS ARE LIMITED TO ADVANCING THE AMOUNT THEREOF SOLELY FROM ANY AVAILABLE MONIES IN THE RESERVE FUND AND TO UNDERTAKING JUDICIAL FORECLOSURE PROCEEDINGS TO RECOVER SUCH DELINQUENCIES AS COVENANTED BY THE CITY. 1 • • The Bonds are not general obligations of the City, County, the State of California or any political subdivision thereof and neither the City nor the State nor any political subdivision thereof has pledged its full faith and credit or taxing power for the payment of the Bonds. For a more complete description of the above, see the sections under the heading "THE BONDS" entitled "Security for the Bonds","Reserve Fund"and"Covenant to Commence Superior Court Foreclosure"herein. The District The Assessment District proceedings are being conducted pursuant to the Municipal Improvement Act of 1913 and Resolution of Intention No.90-207,approved by the City Council on May 1, 1990. The total assessment for Phase I and Phase II of the work as revised and confirmed by the City, is$1,957,928.27.The amount of Phase I assessments remaining unpaid are $1,719,345.62, and are represented by the Bonds of this Series A issue. No date has been set for the sale of the Phase II, Series B Bonds; see "THE ASSESSMENT DISTRICT -. The Project"for a further discussion of the two phases of work. Shasta View Extension Assessment District No. 1990-2, (the"District") is composed of approximately 310 acres of land consisting of 156 single-family residential lots and six larger, presently unsubdivided acreage parcels. The District is located approximately three miles southeast of the center of the City of Redding and about one and one-half miles northwest of the Redding Municipal Airport. Bondowners Risks For a discussion of certain of the investment qualities of this issue, refer to the section herein entitled "SPECIAL RISK FACTORS". Information contained in this Official Statement does not purport to be comprehensive or definitive. All references to the Bonds and the Project are qualified in their entirety by reference to the Engineer's Report and to the City's resolutions setting forth the terms and descriptions thereof. THE BONDS Purpose of the Bonds Proceeds from the sale of the Bonds will be used to finance the acquisition of public improvements, incidental expenses and issuance costs, all as described in the Section entitled "THE ASSESSMENT DISTRICT - The Project". Authority for Issuance The improvement proceedings for the District were initiated by adoption of the Resolution of Intention No. 90- 207 by the City Council (the"Council") of the City of Redding on May 1, 1990, and were conducted pursuant to Division 12 of the California Streets and Highways Code, the Municipal Improvement Act of 1913 (the "1913 Act"). The Bonds are authorized pursuant to a resolution providing for issuance of the Bonds (the "Resolution of Issuance") adopted by the Council on December 4, 1990. The Bonds,which are secured by and represent the unpaid assessments levied against private property in the District, are issued pursuant to the provisions of the Improvement Bond Act of 1915(the"Bond Law"or the"1915 Act"). The Assessment Engineer prepared a written report (the "Engineer's Report") which contains, among other things, the list of improvement costs and the amount of the assessment to be levied against the parcels in the District. The assessment was levied on the basis of the special benefit to be derived by such parcels from the improvements. (See"THE ASSESSMENT DISTRICT-Method of Assessment Spread"herein.) 2 . The Final Engineer's Report was submitted to the Council on September 18, 1990, and was approved by the Council on October 16, 1990. On October 16, 1990,a public hearing was held at which the public had the right to protest the levy of the proposed assessment in writing, prior to or at the commencement of the hearing and to be heard at the hearing. No protests were received at the hearing. The Engineer's Report was recorded in the office of the Director of Public Works on October 24, 1990, at which time the assessments became a lien against the assessed parcels. Description of the Bonds The Bonds are dated December 18, 1990, and will bear interest from the date at the rates and mature in the amounts and on the dates set forth on the cover page of this Official Statement. The Bonds are issued as fully registered bonds without coupons in denomination of$5,000 or any integral multiple thereof except for one Bond due in 1992 which will include the amount by which the principal amount of the issue exceeds the largest integral multiple of$5,000 contained therein.Principal,interest and premium,if any, on the Bonds is payable at the Corporate Trust and Agency Group West of Bankers Trust Company of California, the Registrar,Transfer Agent and Paying Agent (the "Paying Agent"), San Francisco, California. Interest on the Bonds is payable by check or draft mailed to the respective registered owners thereof as of the 15th day immediately preceding the payment date. MATURITY SCHEDULE Due Amount Due Amount September 2 Maturing September 2 Maturing 1992 $ 2002 $ 1993 2003 1994 2004 1995 2005 1996 2006 1997 2007 1998 2008 1999 2009 2000 2010 2001 2011 Transfer and Exchange Transfer of ownership of a Bond shall be made by exchanging the same for a new fully registered Bond of the same maturity in the same aggregate principal amount. All of such exchanges shall be made in such manner and upon such reasonable terms as may from time to time be determined and prescribed by the City;provided, however, that no such exchange is required to be made by the Fiscal Agent between the fifteenth day of the month next preceding any Interest Payment Date, nor during the fifteen days preceding the selection of any Bond for redemption prior to maturity thereof, nor with respect to any Bond which has been selected for redemption prior to the maturity thereof. Such registration and transfer shall take place at the principal corporate trust office of the Fiscal Agent. The Fiscal Agent may make a charge for every exchange or transfer and shall require the Bondholder to pay for any tax or governmental charge required to be paid with respect to such exchange or transfer. 3 • • Mutilated.Lost or Stolen Bonds If any Bond is mutilated, lost,stolen or destroyed, the City may execute and the Fiscal Agent may authenticate and deliver a new Bond or Bonds in replacement thereof in the same aggregate principal amount and of the same maturity. Mutilated Bonds must be surrendered to the Fiscal Agent. In the case of a lost, stolen or destroyed Bond,the City and the Fiscal Agent may require satisfactory evidence of the loss,theft or destruction of the Bond and indemnification prior to authenticating and delivering a new Bond. The City and Fiscal Agent may charge the owners of mutilated, lost, stolen or destroyed Bonds for their reasonable fees and expenses in connection with the replacing of such Bonds. Optional Redemption and Prepayment of Bonds Any Bond may be called for redemption by the Treasurer of City of Redding prior to maturity on any March 2 or September 2 upon payment of the principal balance thereof, plus accrued interest to the date of redemption together with a premium of three percent (3%) of said principal amount. No interest will accrue on a Bond beyond the March 2 or September 2 on which said Bond is called for redemption. Notice of redemption must be given to the registered owner of the Bond by personal service or registered or certified mail at least 30 days prior to the redemption date, as provided in the Bond Law. The determination as to which Bond or Bonds are to be called will be made by the Paying Agent in accordance with the Bond Law. A transfer of property ownership could result in prepayment of all or part of the assessment. Such prepayment would result in redemption of a portion of the Bonds prior to their stated maturities. Refunding Bonds Pursuant to the Refunding Act of 1984 for 1915 Act Improvement Bonds (Division 11.5 of the Streets & Highways Code of the State of California),the City may issue refunding bonds for the purpose of redeeming the Bonds. The City may issue and sell refunding bonds without giving notice to and conducting a hearing for the owners of property in the assessment district, or giving notice to the holders of the Bonds, if the City fmds that (i) each estimated annual installment of principal and interest on the reassessment to secure the refunding bonds is less than the corresponding annual installment of principal and interest on the original assessment, (ii) the number of years to maturity of the refunding bonds does not exceed that of the Bonds,and(iii) the amounts of any reassessments are computed by reducing each original assessment by the same percentage.Upon issuing refunding bonds, the City could require that the Bonds be exchanged for refunding bonds on any basis which the City determines is for the City's benefit, if the Bondholders consent to the exchange. As an alternative to exchanging the refunding bonds for the Bonds, the City could sell the refunding bonds and use the proceeds to pay the principal of and interest and redemption premium,if any,on the Bonds as they become due,or advance the maturity of the Bonds and pay the principal of and interest and redemption premium thereon. Disposition of Surplus from the Improvement Fund The amount of any surplus remaining in the Improvement Fund after completion of the acquisition of the Project (as hereinafter defined) and payment of all claims may,at the discretion of the City Council: A) Be transferred to the General Fund of the City if the surplus does not exceed the lesser of one thousand dollars ($1,000) or five percent (5%) of the total amount expended from the Improvement Fund; B) Be applied as a credit on the assessment or refunded to the payer if such assessment has been paid in cash, all as provided in the Act;or C) Be utilized for maintenance of the Improvements. 4 • • Security for the Bonds The Bonds are issued upon and secured by the unpaid assessment against the property in the District together with interest thereon, and said unpaid assessment together with interest thereon constitutes a trust fund for the redemption and payment of the principal of the Bonds and the interest thereon. All the Bonds are secured by the monies in the Redemption Fund and the Reserve Fund created pursuant to the assessment proceedings and by the unpaid assessments levied to provide for purchase by the City of the Project. Principal of and interest on the Bonds are payable exclusively out of the Redemption Fund. The assessment and each installment thereof and any interest and penalties thereon constitute a lien against the parcels of land on which it is levied until the same is paid. Such lien is subordinate to all fixed special assessment liens previously imposed upon the same property,but has priority over all existing and future private liens and over all fixed special assessment liens which may thereafter be created against the property. Such lien is co-equal to and independent of the lien for general property taxes. The City reports that there are no prior special assessment liens against various parcels in the District. The Bonds are not secured by the general taxing power of the City, or the State or any political subdivision of the State, and neither the County nor the State nor any political subdivision of the State has pledged its full faith and credit for the payment thereof. Although the unpaid assessment constitutes a fixed lien on the parcels assessed,it does not constitute a personal indebtedness of the owner of said parcel. Furthermore, there can be no assurance as to the ability or the willingness of such owner to pay the unpaid assessment. The unpaid assessment will be collected in annual installments, together with interest on the declining balance, on the County of Shasta tax roll on which general taxes on real property are collected and are payable and become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do said general taxes, and the property upon which the assessment was levied is subject to the same provisions for sale and redemption as are properties for nonpayment of general taxes.These annual installments are to be paid into the Redemption Fund which will be held by the City Treasurer and used to pay the principal of and interest on the Bonds as they become due. The installments billed against the parcels of property in the District will be equal to the total principal and interest coming due on all of the Bonds that year. Limited Obligation of the City Upon Delinquency If a delinquency occurs in the payment of any assessment installment, the City has a duty only to transfer into the Redemption Fund the amount of the delinquency out of the Reserve Fund. This duty of the City is continuing during the period of delinquency,until reinstatement, redemption or sale of the delinquent property. There is no assurance that funds will be available for this purpose and if,during the period of delinquency,there .: are insufficient monies in the Reserve Fund,a delay may occur in payments to the owners of the Bonds.If there are additional delinquencies after exhaustion of funds in the Reserve Fund, the City is not obligated to transfer into the Redemption Fund the amount of such delinquencies out of any other available monies of the City. THE CITY'S LEGAL RESPONSIBILITIES WITH RESPECT TO SUCH DELINQUENT INSTALLMENTS ARE LIMITED TO ADVANCING THE AMOUNT THEREOF SOLELY FROM ANY AVAILABLE MONIES IN THE RESERVE FUND AND TO UNDERTAKING JUDICIAL FORECLOSURE PROCEEDINGS TO RECOVER SUCH DELINQUENCIES. THIS DUTY OF THE CITY IS CONTINUING DURING THE PERIOD OF DELINQUENCY ONLY TO THE EXTENT OF FUNDS AVAILABLE FROM THE RESERVE FUND UNTIL REINSTATEMENT, REDEMPTION OR SALE OF THE DELINQUENT PROPERTY. 5 • • Articles XIII A and XIII B of the California Constitution On June 6, 1978, California voters approved an amendment to the California Constitution, commonly known as Proposition 13 (the Jarvis/Gann Initiative) which added Article XIII A to the California Constitution. The effect of Article XIII A is to limit ad valorem taxes on real property. On November 7, 1978, the California voters approved Proposition 8,which made certain clarifications to Article XIII A. Enactment of Article XIII A has reduced the amount of general property tax revenues received by the City. This reduction in such revenues makes it less likely that the City will have surplus funds, other than monies in the Reserve Fund, to pay delinquent assessment installments if the City Council with the exercise of its discretion choose to do so. If there are additional delinquencies after exhaustion of funds in the Reserve Fund, the City has no obligation to transfer into the Redemption Fund the amount of any such delinquencies out of any surplus monies of the City. On July 2, 1979,the Fifth District Court of Appeal (94 Cal.App.3d 974) rendered a 3-0 decision in the case of County of Fresno v. Malmstrom that determined that special assessments are not subject to the limitations of Article XIIIA (Proposition 13). The Court held the one percent tax limitation imposed by California Constitution Article XIIIA on ad valorem taxes does not apply to special assessments levied pursuant to the Improvement Act of 1911 (Streets and Highways Code, Section 5000 et seq. and 10000 et seq.) and the 1913 Act. The Court further held that because special assessments pursuant to such acts are not within the defmition of"special taxes"in Article XIIIA, the Constitution does not require the levy of assessments and the issuance of Bonds to be approved by a two-thirds vote of the qualified electors of the District. On September 12, 1979, the California Supreme Court refused to hear an appeal of the lower court's decision. At the November 6, 1979 general election, Proposition 4 (the Gann Initiative) was approved by the voters of California. Such proposition added Article XIII B to the California Constitution. Article XIII B limits the annual appropriations of the City to the amount of appropriations for the prior year adjusted for changes in the cost of living and population. On December 17, 1980, the Third District Court of Appeal (113 Cal.App. 3d 443) rendered a 3-0 decision in the case of County of Placer v. Corin that determined that special assessments are not subject to the limitation of Article XIIIB (Proposition 4). The Court held that the defmition of "proceeds of taxes" imposed by California Constitution Article XIIIB does not apply to special assessments and improvement Bonds issued pursuant to the Bond Law and the 1913 Act. The decision of the Court was not appealed. The enactment of Article XIIIA of the California Constitution (Proposition 13) and subsequent legislative enactments effectively repeal the otherwise mandatory duty on the part of the City,under the Bond Law, to levy and collect a special tax (in an amount necessary to meet delinquencies, but not to exceed ten cents on each $100 of assessable property within the City in any one year) if other funds are not available to cover delinquencies. A Reserve Fund will be established from the Bond proceeds as a source of monies to advance to the Redemption Fund in the event of a delinquent assessment installment. Additionally, the City has covenanted to commence judicial foreclosure proceedings by October 1 of any year following such delinquency and to prosecute diligently to completion the foreclosure upon the lien of each and every delinquent assessment installment. Reserve Fund Pursuant to Part 16 of the Act, there shall be created a special reserve fund for the Bonds to be designated by the name of the Assessment District and specified as the special "Reserve Fund". An amount equal to seven percent (7%) of the original principal amount of the Bonds shall be deposited in the Reserve Fund out of said Bond proceeds. 6 • • Monies in the Reserve Fund shall be applied as follows: A) Amounts in said Reserve Fund shall be transferred to the Redemption Fund for the Bonds if, as a result of delinquencies in the payment of assessments,there are insufficient monies in said Redemption Fund to pay principal of and interest on the Bonds when due. Amounts so transferred shall be repaid to the Reserve Fund from proceeds from the redemption or foreclosure of property with respect to which an assessment is unpaid and from payments of the delinquent assessments; B) Interest earned on the permitted investment of monies on deposit in the Reserve Fund shall remain in the Reserve Fund so that the amount therein may accumulate to and subsequently be maintained at the "Reserve Requirement". The Reserve Requirement shall be an amount equal to the lesser of: 1) The Maximum Annual Debt Service on the Bonds; 2) 125%of the average annual debt service on the Bonds;or 3) 7%of the original principal amount of the Bonds. Annual Debt Service on the Bonds for each year ending September 2nd shall equal the sum of: 1) The interest falling due on the outstanding bonds in such 12 month period, assuming that the outstanding bonds are retired as scheduled;and 2) The principal amount of outstanding bonds falling due during such 12 month period. "Average Annual Debt Service" shall mean the average Annual Debt Service during the term of the Bonds. "Maximum Annual Debt Service" shall mean, as computed from time to time, the largest Annual Debt Service during the period from the date of such computation through the final maturity of any outstanding bonds. C) On July 15 of each fiscal year the amount on deposit in the Reserve Fund in excess of the Reserve Requirement shall be transferred from the Reserve Fund to the Redemption Fund and shall be credited to the unpaid assessment installments payable during such fiscal year. The Auditor's record, prepared pursuant to Section 8682 of the Streets and Highways Code, shall reflect the credits against each of the unpaid assessments in the manner provided in Streets and Highways Code Section 10427.1 in amounts equal to each parcel's proportionate share of such transfer. Notwithstanding the above, interest earnings on monies on deposit in the Reserve Fund in excess of the "yield" on the Bonds, as that term is defined in the Internal Revenue Code of 1986 (the "Code"), shall be subject to transfer and rebate to the United States. D) Whenever monies in the Reserve Fund are sufficient to retire all of the Bonds outstanding, plus accrued interest thereon, such money shall be transferred to the Redemption Fund for the Bonds and collection of the remaining unpaid assessments shall cease. E) In the event assessments are paid in cash in advance of their final maturity date, the City is required to credit the prepaid assessment with a proportionate share of the Reserve Fund and to transfer an amount equal to such credit to the Redemption Fund to be utilized for the advance retirement of Bonds. 7 • • The need to make advances from the Reserve Fund may result in its total depletion prior to reimbursement from resales of property or delinquency redemptions. In that event, there could be a default in payments to holders of the Bonds,the curing of which would be dependent upon reimbursement of the Reserve Fund. If there are not sufficient funds in the Reserve Fund to fully cover a Redemption Fund deficiency and it is determined by the City Treasurer that there will not be an ultimate loss to the holders of the Bonds, the City Treasurer is required to direct the Paying Agent to redeem matured Bonds and pay interest on the Bonds as long as there are available funds in the Redemption Fund, after transfer from the Reserve Fund. This procedure could result in some matured Bonds not being redeemed and interest on the Bonds not being fully paid on the due dates. Such matured Bonds would not be fully redeemed and such delayed interest would not be paid until funds are available from a foreclosure sale of the property having the delinquent assessment installments. Covenant to Commence Superior Court Foreclosure The Bond Law provides that in the event any assessment or installment thereof or any interest thereon is not paid when due, the City may order the institution of a court action to foreclose the lien of the unpaid assessment. In such an action, the real property subject to the unpaid assessment may be sold at judicial foreclosure sale. This foreclosure sale procedure is not mandatory. However, by the Resolution providing for the issuance of the Bonds, the City has covenanted with the Bondowners that, not later than October 1 in any year,the City shall file an action in the Superior Court to foreclose the lien of each delinquent assessment if the sum of uncured assessment delinquencies for the preceding fiscal year exceeds five percent (5%) of the assessment installments posted to the tax roll for that fiscal year,and if the amount of the special reserve fund is less than the Reserve Requirement. The City will thereafter diligently prosecute to completion court foreclosure proceedings upon the lien of any and all delinquent unpaid assessments and interest. In the event such Superior Court foreclosure or foreclosures are necessary,there may be a delay in payments to Bondowners pending prosecution of the foreclosure proceedings and receipt by the City of the proceeds of the foreclosure sale.It is also possible that no bid for the purchase of the applicable property would be received at the foreclosure sale.See also the section herein entitled"SPECIAL RISK FACTORS". Prior to July 1, 1983,the right of redemption from foreclosure sales was limited to a period of one year from the date of sale. Under legislation effective July 1, 1983, the statutory right of redemption from such foreclosure sales has been repealed. However, a period of 140 days must elapse after a court adjudges and decrees a lien against the lot or parcel of land covered by an assessment before the sale of such parcel can be given. Furthermore,if the purchaser at the sale is the judgment creditor,i.e. the City,an action may be commenced by the delinquent property owner within 6 months after the date of sale to set aside such sale.The constitutionality of the aforementioned legislation which repeals the one year redemption period has not been tested and there can be no assurance that,if tested,such legislation will be upheld. Price Realized Upon Foreclosure Amendments to the 1915 Act enacted in 1988 and effective January 1, 1989 provide that under certain circumstances property may be sold upon foreclosure at a lesser Minimum Price or without a Minimum Price. "Minimum Price" as used in this section is the amount equal to the delinquent installments of principal and interest on the assessment or reassessment, together with all interest, penalties, costs, fees, charges and other amounts more fully detailed in the 1915 Act. The court may authorize a sale at less than the Minimum Price if the court determines,based on the evidence introduced at the required hearing,any of the following: A) Sale at the lesser Minimum Price or without a Minimum Price will not result in an ultimate loss to the Bondowners. B) Bondowners of 75%or more of the outstanding bonds,by principal amount,have consented to such sale and the sale will not result in an ultimate loss of the non-consenting Bondowners. 8 • • C) Bondowners of 75%or more of the outstanding bonds,by principal amount,have consented to the petition and all of the following apply: 1) By reason of determination pursuant to the 1915 Act, the City is not obligated to advance funds to cure a deficiency(the City made such a determination not to be so obligated with respect to the Bonds). 2) No bids equal to or greater than the Minimum Price have been received at the foreclosure sale. 3) No funds remain in the Reserve Fund. 4) The City has reasonably determined that a reassessment and refunding proceeding is not practical, or has in good faith endeavored to accomplish a reassessment and refunding and has not been successful, or has completed reassessment and refunding arrangement which will,to the maximum extent feasible,minimize the ultimate loss to the Bondowners. 5) No other remedy acceptable to Bondholders of 75% or more of the outstanding bonds,by principal amount,is reasonably available. The assessment or reassessment lien upon property sold pursuant to this procedure at a lesser price than the Minimum Price shall be reduced by the difference between the Minimum Price and the sale price. In addition, the court shall permit participation by the Bondholders in its consideration of the petition as necessary to its determinations. Implementation of the above-described Minimum Price provision by the court upon foreclosure could result in nonpayment of amounts due to Bondholders who are not in agreement with the 75% of such Bondholders required to approve the sale at less than the Minimum Price. Reference should be made to the 1915 Act for a complete presentation of this provision. Priority of Lien The assessment (and any reassessment) and each installment thereof, and any interest and penalties thereon, constitute a lien against the parcel of land on which it was imposed until the same is paid. Such a lien is subordinate to all fixed special assessment liens previously imposed upon the same property, but has priority over all private liens and over all fixed special assessment liens which may thereafter be created against the property. Such a lien is co-equal to and independent of the lien for general property taxes. Funds to acquire certain prior assessment liens upon various parcels in the District will be provided for from Bond proceeds, and ,. accordingly there will be no prior special assessment liens against any parcels in the District other than the lien imposed under these proceedings. See "Acquisition Costs" in "THE PROJECT" Section of this Official Statement. Arbitrage Covenant The City covenants and agrees to take no action which, in the opinion of Bond Counsel,would result in interest on the Bonds becoming "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), "private activity bonds" subject to federal income taxation by reason of Section 141(a) of the Code or obligations subject to federal income taxation because they are "federally guaranteed" as provided in Section 149(b) of the Code. The City represents and covenants in the Indenture, for the benefit of the Bondowners, that it will comply with all applicable requirements of the Code together with any amendments thereto and regulations promulgated thereunder necessary to preserve the exclusion from gross income for purposes of federal income taxation of interest on the Bonds. 9 • • Debt Service Schedule The following schedule indicates the principal and interest due on March 2 and September 2 of each year as debt service on the Bonds: TABLE 1 CITY OF REDDING SHASTA VIEW EXTENSION ASSESSMENT DISTRICT NO. 1990-2,SERIES A DEBT SERVICE SCHEDULE Principal Interest Due Year Due Sept.2 March 2 September 2 Total 1992 $ $(1) $ $ 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (1) Represents interest from December 18, 1990 to March 2, 1992. 10 • • SPECIAL RISK FACTORS General In order to pay debt service on the Bonds,it is necessary that unpaid installments of assessments on land within the District are paid in a timely manner.Should the installments not be paid on time, the City will draw on the Reserve Fund to fund such delinquency,to the extent of monies held therein. If the Reserve Fund becomes depleted, the City is not obligated to provide any available funds of the City for deposit into the Redemption Fund. The assessments are secured by monies in the Redemption Fund and the Reserve Fund and by a lien on the parcels of land in the District. The City has covenanted with the Bondholders to institute superior court foreclosure proceedings to sell property with delinquent installments for the amount of such delinquent installments not later than October 1 following such delinquency, in order to obtain monies to pay debt service on the Bonds. No assurance can be given, should any parcel become delinquent due to unpaid assessment installments, that it could be foreclosed upon and sold for the amount of the delinquency, that any bid would be received for such property or,if a bid is received, that such bid would be sufficient to pay such delinquent installments.However, as the Bond Law requires that a property be sold only for the amount delinquent and not for the entire outstanding assessment, it is likely that, based on the Shasta County Assessor's valuation of the land and improvements subject to the balance of the assessment lien, property values should be sufficient to secure any delinquent installments. Failure by owners of the parcels to pay installments of assessments when due,depletion of the Reserve Fund,or the inability of the City to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of assessments levied against such parcels,may result in the inability of the City to make full or punctual payment of debt service on the Bonds, and Bondowners would therefore be adversely affected. Unpaid assessments do not constitute a personal indebtedness of the owners of the lots and parcels within the District. There is no assurance that the owners will be financially able to pay the assessment installments or that they will pay such installments even though financially able to do so. Limited Obligation of the City Upon Delinquency If a delinquency occurs in the payment of any assessment installment, the City will have a duty only to transfer into the Redemption Fund the amount of the delinquency out of available funds of the Reserve Fund. This duty of the City is continuing during the period of the delinquency, only to the extent of funds available from the . Reserve Fund, until reinstatement, redemption or sale of the delinquent property. There is no assurance that funds will be available from the Reserve Fund for this purpose and if, during the period of the delinquency, there are insufficient available funds,a delay may occur in payments to the owners of the Bonds. Property Ownership Because subdivision of certain large parcels of land, sale of lots and construction and sale of homes within the District is still taking place, property ownership is as yet undiversified. In view of this relative concentration of ownership, the timely payments on a large portion of the Bonds depends on the willingness and ability of a small number of owners to pay the assessments on the undeveloped land or unsold lots when due. A slowdown or stoppage in the continued development of the District might reduce the willingness of the landowner, or any successors, to pay assessment installments. There is no assurance that the owners will pay such installments even if financially able to do so. 11 • • Bankruptcy The payment of property owner's assessment installments and the ability of the City to foreclose the lien of a delinquent unpaid assessment may be limited by the bankruptcy, insolvency, or other laws generally affecting creditors'rights or by the laws of the State relating to court foreclosure. Payment of the assessment installments is dependent upon the timely payment by the existing landowners, or any other subsequent owners of the property within the District. Although bankruptcy proceedings would not in themselves cause the assessment liens to become extinguished, bankruptcy of a property owner could result in a delay by the City in prosecuting its Superior Court foreclosure proceedings. Such delay would increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds, and the possibility of delinquent assessment installments not being paid in full. Moreover, amounts received upon foreclosure sales may not be sufficient to fully discharge delinquent installments. The final legal opinion to be delivered concurrently with the delivery of the Bonds will be qualified, as to the enforceability of the various legal instruments, by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. No City Obligation As discussed in the section herein entitled "Limited Obligation of the City upon Delinquency', if a delinquency occurs in the payment of any assessment installment, the City has only the duty to transfer the amount of such delinquent installment from the special Reserve Fund into the Redemption Fund. If there are additional delinquencies, after depletion of the Reserve Fund, the City, pursuant to the Resolution of Intention, has elected not to obligate itself to advance available funds from the City Treasury to cure any deficiency which may occur in the Redemption Fund. A determination not to obligate itself shall not prevent the City from,in its sole discretion, so advancing funds. There is no assurance that funds will be available to cure delinquencies and a delay may occur in payments to the owners of the Bonds. Factors Which May Affect Land Development and Property Values Future development in the District may be affected by changes in general economic conditions, fluctuation in the real estate market and other factors. In addition, development may be subject to future federal, state and local regulations. Approval may be required from various public agencies in connection with the design,nature, and extent to required public improvements, or such matters as land use and zoning. Failure to meet any such future regulations or obtain any such approvals in a timely manner could delay or adversely affect any proposed development in the District. Consequently,no assurance can be given that such development will be partially or fully completed, and in assessing the investment quality of the Bonds, prospective purchasers should evaluate the risks of non-completion. Ballot Initiatives Constitutional initiatives or other initiative measures from time to time may be adopted by California voters. This might result in placing limitations on the ability of the State, counties or other local agencies to increase revenues or appropriations,or on the ability of the landowners to complete development. 12 • Other Indebtedness The ability of an owner of land within the District to pay, in a timely manner, the assessments on the property could be affected by the existence of other taxes and assessments imposed upon the property subsequent to the levy of this lien. Additionally, other public agencies whose boundaries overlap those of the District could, without the consent of the District,and in certain cases without the consent of the owners of the land within the District, impose additional taxes or assessment liens on the property within the District to finance public improvements to be located inside or outside of the District. Estimated Land Values The value of the land within the District is a critical factor in determining the investment quality of the Bonds. If a property owner defaults in the payment of assessment installments, one of the City's remedies is to commence foreclosure proceedings in an attempt to obtain funds to pay the delinquent assessment installment. An appraisal of the value of the land only within the District was prepared by Hutchinson Appraisal Service, Palo Cedro, California, dated July 23, 1990, with a valuation date of November 1, 1990. Portions of this appraisal appear in Appendix D of this Official Statement,summarizing that firm's opinion with respect to the probable market value of the land within the District. This opinion is based upon the current land use as single- family residential properties,and assumes the acquisition of the completed improvements for which the Series A Bonds are being sold. NO REPRESENTATIONS ARE BEING MADE REGARDING THE ACCURACY OF THE APPRAISAL,AND PROSPECTIVE PURCHASERS ARE CAUTIONED NOT TO RELY ON THE VALUATIONS IN DETERMINING WHETHER OR NOT THE BONDS DESCRIBED HEREIN ARE A SUITABLE INVESTMENT. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD NOT ASSUME THAT THE PROPERTY WITHIN THE ASSESSMENT DISTRICT COULD BE SOLD FOR THE VALUATION AMOUNT AT A FORECLOSURE SALE FOR DELINQUENT ASSESSMENTS. The actual value of the property is subject to future events which might render invalid the basic assumptions of the Appraiser. Additionally, reductions in District land values could occur due to a downturn in the economy, occurrences such as earthquakes or floods or other events, all of which may adversely impact the value of the security underlying the assessment. Loss of Tax Exemption As discussed under the section "MISCELLANEOUS-Tax Exemption" herein, interest on the Bonds could become includable in gross income for purposes of federal income taxation, retroactive to date the Bonds were issued,as a result of future acts or omissions of the City in violation of its covenants in the Indenture. 13 • • THE ASSESSMENT DISTRICT Description of the District Shasta View Extension Assessment District No. 1990-2 is composed of approximately 310 acres of land consisting of 156 single-family residential lots and six larger, presently unsubdivided acreage parcels. The District is located approximately three miles southeast of the center of the City of Redding and about one and one-half miles northwest of the Redding Municipal Airport. The Interstate 5 freeway is about two miles west of the District. As previously discussed,the District is still in its development stage. There are 39 new homes either completed or under construction,with prices ranging as high as$280,000. The sizes of the six larger undeveloped parcels are as follows. Assessment No, Parcel Size (Acres) 1 21.91 2 27.00 3 48.60 46 54.00 89 54.80 116 19.97 Property Ownership The following listing shows those property owners responsible for payment of a significant portion of the assessment liens. Eckelman �c Scarbrough. Assessment No. 1 They are also partners with Jerry L. Knighten Construction on certain portions of its holdings. Experienced local developers. Western Acres, Inc, Assessment No.2. Redding Properties.L.P. Assessments No.3 and 46. A limited partnership with Western Acres,Inc.as general partner. George H. Gardner. Assessments 4-45, inclusive. A partnership composed of experienced local developers. Jerry L. Knighten Construction. Assessments 47-89, inclusive, and 90-116, inclusive. An experienced local developer. Mapes,Langan.Morgan.Elmore&Heckler. Assessments 152-155,inclusive,161 and 162. Kenneth C. Elmore. Assessments 156-160,inclusive. 14 • • District Valuation The Assessment Roll in Appendix A tabulates the assessment liens for both the Phase I and Phase II work, shows the Shasta County assessed valuations, the fair market value according to the appraisal, and gives the value/lien ratio based upon the total assessment lien to the fair market appraisal value. Since the passage of Proposition 13 in 1978,California assessed valuations do not purport to be proportional to market values. Property is assessed upon change of ownership and adjusted thereafter at a maximum of two percent per year for inflation; property is also reassessed upon new construction or change of ownership. The assessed valuations in the District are based on the cost and condition of the property at the time of its acquisition, and totals$4,677,068.00. These values do not reflect added market value which may result from the improvements undertaken for Shasta View Extension Assessment District No. 1990-2 or for the new construction of residences within the District. Accordingly, the value/lien ratio based upon the total amount of the assessment for Phases I and II (before cash collections) to the District's Fiscal Year 1990/91 assessed valuation is 2.39:1. The table in Appendix A also gives the individual parcel value/lien ratios based upon the fair market appraisal value totalling $13,664,500. No overall average value/lien ratio has been computed, as it would unfairly reflect the skewed ratios for those parcels (Assessment Numbers 117-162) that do not benefit from certain portions of the improvement work. Project Description A portion of the information in this Section has been taken from the Engineer's Report prepared by Sharrah Dunlap and Associates,Inc.,Redding,California,and has been edited or condensed for clarity. The improvement project consists of two work phases,as follows. Phase I Improvements. The construction of approximately 5,500 lineal feet of Shasta View Drive, necessary widening on Rancho Road, common utility trench, storm drain, striping, together with appurtenant work and facilities and the acquisition of necessary rights-of-way. The Series A Bonds presently being issued represent the unpaid assessments for the acquisition of this Phase I work. Phase II Improvements. The construction of approximately 2,900 lineal feet of sanitary sewer main, removal of existing lift station and all necessary appurtenances. This work is not yet under way,and no date has been set for the sale of bonds. The estimated cost of the work has been assessed to the individual benefitted parcels and is so included in the total assessment lien; see Appendix A, the Assessment Roll for further information. Statement of Method of Determining Benefit Phase I. Inasmuch as all properties within this District are planned to be zoned "Residential", the following observations were made: 1) Parcels range in size from 1/4 acre to 75 acres. 2) Not all participants will directly benefit from all of the improvements to be constructed. From these observations,the following method of assessment was derived: 15 • • • Shasta View Drive. Parcels 1-3 will each be responsible for the curb, gutter and sidewalk which fronts on their property. Parcels 4-45 will each be responsible for equal shares of the curb, gutter, and sidewalk in front of the Highland Oaks Unit 1 Subdivision. Parcels 47-88 will each be responsible for equal shares of the curb, gutter and sidewalk in front of Highland Oaks Unit 2 and 3 Subdivisions. The remaining Improvements and incidentals were spread between parcels 1-116 based on the number of household equivalents assigned to each parcel. Each parcel was assigned a number of household equivalents that would contribute flow to the lines. This was based on tentative maps/site plans currently in process. If no tentative map/site plan currently exists, the number of household equivalents assigned to each parcel was based on the maximum density allowable based on the current General Plan. Rancho Road. The improvements for Rancho Road were spread between Parcels 1-116 based on the number of household equivalents assigned to each parcel. Phase II. Inasmuch as all properties within this District are planned to be zoned "Residential", the following observations were made: 1) Parcels range in size from 1/4 acres to 75 acres. From these observations,the following method of assessment was derived: Sanitary Sewer. Parcels 117-162 will each be responsible for $300.00 towards the cost of the sanitary sewer. The remaining sanitary sewer improvements will be spread between Parcels 2-45, 47-88, and 90-116, based on the number of household equivalents assigned to each parcel The following tabulation summarizes in detail the estimated costs for the improvements and incidental costs, including the Bond Reserve Fund and Discount for the Phase I work;it shows the Phase II work as a lump sum item,inasmuch as Bonds for the Phase II work are not being issued at this time. 16 • • PHASE I ENGINEER'S ESTIMATE OF CONSTRUCTION COSTS Shasta View Drive Street Improvements $633,907.00 Drainage 78,086.00 Miscellaneous 145.524.00 Total for Shasta View $857,517.00 Rancho Road Street Improvements $54,528.00 Miscellaneous 54.250.00 Total for Rancho Road 108,778.00 Acquisition Costs Clover Creek Assessments 408.381.90 Subtotal $1,374,676.90 Incidental Expenses Total Engineering $55,500.00 City Fees 22,343.73 Total Legal Fees 33,843.73 Bond Charges 17,500.00 Loan Fee& Construction Interest 30,415.36 Appraiser&Title Company 7,312.00 Publication& Miscellaneous 2,000.00 Provision for Bond Discount 69,374.91 Bond Reserve Fund 121.406.08 Total Incidentals 359.695.81 Total Phase I $1,734,372.71 Total Phase II $223,555.56 Total Assessment Lien,Phase I& Phase II $1,957,928.27 Less: Cash Collections,Phase I Only $15,027.09 Amount to Series A Bond $1,719,345.62 NOTE: No bonds representing the Phase II construction work are being sold at this time. 17 • • Tax Delinquencies and Prior Assessment Liens All Shasta County property taxes for Fiscal Year 1989/90 and prior Fiscal Years are current. The Fiscal Year 1990/91 Shasta County property taxes are now due and payable, the first installment of which will not be delinquent until December 10, 1990. Accordingly,since the date of this Official Statement is December 4, 1990, it is impossible to ascertain at this time whether or not the Fiscal Year 1990/91 property taxes will be paid. Funds to acquire certain prior assessment liens upon various parcels in the District will be provided for from Bond proceeds, and accordingly there will be no prior special assessment liens against any parcels in the District other than the lien imposed under these proceedings. MISCELLANEOUS Legal Opinion All legal matters relating to the authorization, issuance, sale and delivery of the Bonds are subject to the approval of Sturgis, Ness, Brunsell & Sperry, Emeryville, California, Bond Counsel for the City of Redding in connection with the Shasta View Extension Assessment District No. 1990-2. The opinion of Sturgis, Ness, Brunsell & Sperry approving the validity of the Bonds and the proceedings leading to their issuance will be printed on each Bond. The opinion of Bond Counsel will be qualified as to the enforceability of certain of the proceedings by limitations imposed by bankruptcy, insolvency, moratorium and other similar laws affecting creditors' rights, heretofore or hereafter enacted and by the exercise of judicial discretion in accordance with general principles of equity. Tax Exemption In the opinion of Sturgis, Ness, Brunsell & Sperry, Emeryville, California, Bond Counsel, based on existing statutes, regulations, rulings and court decisions, interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes.A complete copy of the opinion of Bond Counsel is printed on the Bonds. The Internal Revenue Code of 1986, as amended (the "Code"), imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds.The City of Redding has covenanted to comply with certain restrictions designed to assure that interest on the Bonds will not be included in federal gross income. Failure to comply with these covenants may result in interest on the Bonds being included in federal gross income,possibly from the date of issuance of the Bonds.The opinion of Bond Counsel assumes compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person)whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may affect the tax status of interest on the Bonds. Bond Counsel is further of the opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes. However, Bond Counsel observes that interest on the Bonds is included in adjusted net book income and adjusted current earnings in calculating corporate alternative minimum taxable income. Certain requirements and procedures contained or referred to in the resolution authorizing issuance of bonds and other relevant documents may be changed and certain actions may be taken, under the circumstances and subject to the terms and conditions set forth in such documents, upon the advice or with the approving opinion of nationally recognized bond counsel. Sturgis,Ness, Brunsell&Sperry expresses no opinion as to any Bond or the interest thereon if any such change occurs or action is taken upon the advice or approval of bond counsel other than Sturgis,Ness, Brunsell& Sperry. 18 • r i Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from federal gross income,the accrual or receipt of interest on the Bonds may otherwise affect a Bondholder's federal tax liability. The nature and extent of these other tax consequences will depend upon the Bondholder's particular tax status and the Bondholder's other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax consequences. No Litigation There is no action, suit, or proceeding known by the City to be pending at the present time restraining or enjoining the delivery of the Bonds or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the execution or delivery thereof. A no litigation certificate, executed by the City Attorney, will be delivered to the Underwriter simultaneously with the delivery of the Bonds. No Rating The City has not made, and does not contemplate making, application to any rating agency for the assignment of a rating to the Bonds. Underwriting M.L.Stern& Co.Inc., the Underwriter,has purchased the Bonds from the City at an aggregate discount of two and one-eights percent(2.125%) from the total par value of Bonds as set forth on the cover page of this Official Statement. The public offering prices may be changed from time to time by the Underwriter.The Underwriter may offer and sell Bonds to certain dealers and others at a price lower than the offering price stated on the cover page hereof. Additional Information Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers,holders or owners of any of the Bonds. Copies of this Official Statement in reasonable quantity and other documents referred to herein may be obtained from the office of M.L.Stern&Co.Inc.,Beverly Hills,California. The execution and delivery of this Official Statement by the City has been duly authorized. BY /s/Nancy Buffum,Mayor 19 • • THIS PAGE INTENTIONALLY LEFT BLANK • • APPENDIX A CITY OF REDDING Shasta View Extension Assessment District No. 1990-2 Parcel Data • • • Assessment Roll City of Redding Shasta View Extension Assessment District 1990-2 Assessor's Phase I Phase lI Total County Fair Market Value/Lien Assmt. Parcel Amount of Amount of Phase I & II Assessed Appraisal Ratio on No. Number Assessment Assessment Assessments Valuations Value Appraisal Value 1 54-090-19 $239,693.72 $0.00 $239,693.72 $239,236.00 $635,400.00 2.65 2 54-090-25 $132,775.30 $41,240.08 $174,015.38 $295,800.00 $648,000.00 3.72 3 54-090-27 $246,292.99 $62,571.15 $308,864.14 $388,000.00 $972,000.00 3.15 4 L1-19-M-72 $3,224.65 $711.03 $3,935.68 $412,590.00 $60,000.00 15.25 5 L2-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 6 L3.19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 7 L4-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 8 L5-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 9 L6-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 10 L7-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 11 L8-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 12 L9-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 13 L10-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $65,000.00 16.52 14 L11-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $60,000.00 15.25 15 112-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 16 L13-19-M-72 $0.00 $711.03 $711.03 Part of No. 4 $55,000.00 77.35 17 L14-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 18 L15-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $60,000.00 15.25 19 116-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 20 L17-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 21 L18-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 22 L19-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 23 L20-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 24 L21-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 560,000.00 15.25 25 122-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $60,000.00 15.25 26 L23-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $65,000.00 16.52 27 L24-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $65,000.00 16.52 28 L25-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 29 126-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 30 127-19-M-72 ' $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 31 L28-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 32 129-19-M-72 . $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 33 L30-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 34 L31-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 35 132-19-14-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 36 L33-19-M-72 • $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 37 134-19-14-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 38 L35-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 39 L36-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 40 137-19-14-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 41 138-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 42 139-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 43 L40-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $55,000.00 13.97 44 141-19-M-72 $3,224.65 $711.03 $3,935.68 Part of No. 4 $50,000.00 12.70 45 L42-19-M-72 $3,224.72 $711.27 $3,935.99 Part of No. 4 560,000.00 15.24 4111 • Assessment Roll City of Redding Shasta View Extension Assessment District 1990-2 46 P"C"-19-M-72 $311,300.27 $0.00 $311,300.27 Part of No. 4 $1,296,000.00 4.16 47 L1-19-M-75 $3,229.42 $711.03 $3,940.45 $408,000.00 $54,000.00 13.70 48 L2-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 49 L3-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 50 L4-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 51 15-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 52 L6-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 53 17-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 54 18-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 55 L9-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 56 L10-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 57 111-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 58 L12-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 59 L13-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 560,000.00 15.23 60 114-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 61 115-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 62 L16-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 63 L17-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 64 L18-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 65 L19-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 66 120-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 67 L21-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 68 122-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 69 123-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 70 124-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $54,000.00 13.70 71 L25-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 72 L26-19-M-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 73 L27-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $52,000.00 13.20 74 128-19-14-75 $3,229.42 $711.03 $3,940.45 Part of No. 47 $60,000.00 15.23 75 11-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 76 12-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $45,000.00 11.42 77 13-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 78 14-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 543,000.00 10.91 79 15-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 543,000.00 10.91 80 16-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 81 17-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 82 18-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 83 19-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 543,000.00 10.91 84 110-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 85 111-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 86 112-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 87 113-19-14-76 $3,229.42 $711.03 $3,940.45 Part of No. 47 $43,000.00 10.91 88 114-19-14-76 $3,229.51 $711.27 $3,940.78 Part of No. 47 $43,000.00 10.91 89 P"B"-19-M-76 $319,345.01 $0.00 $319,345.01 Part of No. 47 $1,096,000.00 3.43 90 11-19-M-61 $2,724.39 $711.03 $3,435.42 $760,000.00 $54,000.00 15.72 91 12-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 92 L3-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 93 L4-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 94 15-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 • • Assessment Roll City of Redding Shasta View Extension Assessment District 1990-2 95 L6-19-M-61 $0.00 $711.03 $711.03 Part of No. 90 $50,000.00 70.32 96 L7-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 97 L8-19-M-61 $2,724.39 $711.03 $3,435_42. Part of No. 90 $50,000.00 14.55 98 L9-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 99 L10-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $43,000.00 12.52 100 L11-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $43,000.00 12.52 101 L12-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $43,000.00 12.52 102 L13-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $43,000.00 12.52 103 L14-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $43,000.00 12.52 104 L15-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $43,000.00 12.52 105 L16-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $45,000.00 13.10 106 117-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $45,000.00 13.10 107 118-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 108 119-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 109 120-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 110 L21-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 111 122-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 112 L23-19-M-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 113 124-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $50,000.00 14.55 114 125-19-14-61 $2,724.39 $711.03 $3,435.42 Part of No. 90 $54,000.00 15.72 115 L26-19-M-61 $2,724.39 $711.18 $3,435.57 Part of No. 90 $50,000.00 14.55 116 Rem.-19-M-61 $111,136.64 $27,730.40 $138,867.04 Part of No. 90 $579,100.00 4.17 117 L1-19-M-27 $693.99 $300.00 $993.99 $42,500.00 $55,000.00 55.33 118 12-19-14-27 $693.99 $300.00 $993.99 $14,471.00 $55,000.00 55.33 119 13-19-14-27 $693.99 $300.00 $993.99 $47,500.00 $55,000.00 55.33 120 L4-19-M-27 $693.99 $300.00 $993.99 $42,500.00 $55,000.00 55.33 121 15-19-14-27 $693.99 $300.00 $993.99 $50,000.00 $55,000.00 55.33 122 16-19-14-27 $0.00 $300.00 $300.00 $51,000.00 $60,000.00 200.00 123 17-19-M-27 $693.99 $300.00 $993.99 $47,000.00 $58,000.00 58.35 124 L8-19-M-27 $693.99 $300.00 $993.99 $47,500.00 $58,000.00 58.35 125 L9-19-M-27 $693.99 $300.00 $993.99 $47,500.00 $60,000.00 60.36 126 L10-19-M-27 $693.99 $300.00 $993.99 $50,000.00 $60,000.00 60.36 127 111.19-14-27 $693.99 $300.00 $993.99 $47,500.00 $55,000.00 55.33 128 L12-19-M-27 $693.99 $300.00 $993.99 $47,500.00 $58,000.00 58.35 129 L13-19-M-27 $693.99 $300.00 $993.99 $50,000.00 $58,000.00 58.35 130 114-19-14-27 $0.00 $300.00 $300.00 $48,500.00 $58,000.00 193.33 131 115-19-14-27 $693.99 $300.00 $993.99 $45,000.00 $58,000.00 58.35 132 116-19-14-27 $693.99 $300.00 $993.99 $47,500.00 $58,000.00 58.35 133 L17-19-M-27 ' $0.00 $300.00 $300.00 $47,000.00 $60,000.00 200.00 134 118-19-14-27 $0.00 $300.00 $300.00 $57,000.00 $65,000.00 216.67 135 119-19-14-27 $693.99 $300.00 $993.99 $47,500.00 $58,000.00 58.35 136 120-19-14-27 $693.99 $300.00 $993.99 $50,000.00 $55,000.00 55.33 137 121-19-14-27 $693.99 $300.00 $993.99 $47,500.00 $55,000.00 55.33 138 122-19-14-27 $0.00 $300.00 $300.00 $47,500.00 $58,000.00 193.33 139 123-19-14-27 $637.81 $300.00 $937.81 $45,000.00 $58,000.00 61.85 140 124-19-14-27 $693.99 $300.00 $993.99 $47,000.00 $58,000.00 58.35 141 L25-19-M-27 $0.00 $300.00 $300.00 $52,000.00 $62,000.00 206.67 142 L26-19-M-27 $693.99 $300.00 $993.99 $52,500.00 $60,000.00 60.36 4111 1110 Assessment Roll City of Redding Shasta View Extension Assessment District 1990-2 143 L27-19-M-27 $693.99 $300.00 $993.99 $52,500.00 $60,000.00 60.36 144 L28-19-M-27 $0.00 $300.00 $300.00 $47,500.00 $62,000.00 206.67 145 L29-19-M-27 $0.00 $300.00 $300.00 $52,000.00 $58,000.00 193.33 146 L30-19-M-27 $693.99 $300.00 $993.99 $46,000.00 $60,000.00 60.36 147 L31-19-M-27 $693.99 $300.00 $993.99 $46,000.00 $60,000.00 60.36 148 L32-19-M-27 $693.99 $300.00 $993.99 $48,500.00 $60,000.00 60.36 149 L33-19-M-27 $693.99 $300.00 $993.99 $50,000.00 $62,000.00 62.37 150 L34-19-M-27 $693.99 $300.00 $993.99 $47,500.00 $58,000.00 58.35 151 L35-19-M-27 $693.99 $300.00 $993.99 $14,471.00 $58,000.00 58.35 152 L1-19-M-26 $693.99 $300.00 $993.99 $200,000.00 $58,000.00 58.35 153 L2-19-M-26 $693.99 $300.00 $993.99 Part of No. 152 $58,000.00 58.35 154 L3-19-M-26 $693.99 $300.00 $993.99 Part of No. 152 $58,000.00 58.35 155 L4-19-M-26 $693.99 $300.00 $993.99 Part of No. 152 $58,000.00 58.35 156 L5-19-M-26 $0.00 $300.00 $300.00 $250,000.00 $58,000.00 193.33 157 L6-19-M-26 $0.00 $300.00 $300.00 Part of No. 156 $60,000.00 200.00 158 L7-19-M-26 $0.00 $300.00 $300.00 Part of No. 156 560,000.00 200.00 159 L8-19-14-26 $0.00 $300.00 $300.00 Part of No. 156 $58,000.00 193.33 160 L9-19-M-26 $0.00 $300.00 $300.00 Part of No. 156 $58,000.00 193.33 161 00-19-M-26 $693.99 $300.00 $993.99 $100,000.00 560,000.00 60.36 162 L11-19-M-26 $693.99 $300.00 $993.99 Part of No. 161 $58,000.00 58.35 $1,719,345.62 $223,555.56 $1,942,901.18 $4,677,068.00 $13,664,500.00 NOTES: (1) Those assessments showing an Assessor's Parcel Number such as "L1-19-M-72" have not yet been assigned an actual Assessor's Parcel Number from Shasta County. This is because the split took place too late for the Assessor to assign true parcel numbers. The same applies to parcels with numbers such as "P"C"-19-M-72". In these descriptions, L" means Lot, "M" means Maps, "P" means Parcel and "Rem." means Remainder. • (2) The Phase I improvement costs include $408,381.90 to pay in full previous 1915 Act assessment liens for the City of Redding, Clover Creek Assessment District. All but Assessment Number 2 were so encumbered. The result is that the assessment liens for Shasta View Extention Assessment District 1990-2 are first liens. See "Acquisition Costs" in the Estimate of Construction Costs. (3) The County Assessed Valuations are for Fiscal Year 1990/91. i • THIS PAGE INTENTIONALLY LEFT BLANK • • APPENDIX B CITY OF REDDING Assessment District No. 1990-2 Assessment Diagram • • • • . • - • .7 z? i ' nl ,,,,,X,:.7. W " 'i u_, V } i ,.--,-.5,-.: . - in,,1^r CIr.,Or GrrvJ! 21 T: OON,nvO •i . 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B :3 ,,3 w (yf (n j c>,-,—,!,-: u (SIHC •OH OVON AlNf10O) OVOM OHONVel 2�" N > Jy clan ( Y � � _1.60:c9 {_ --,e95c1 (n Q V- 5 �' .- qnm j 391,..695 i �,m;;"� -i 1='_ II�Ic; Q - ole'^!!'!,7i.,l^!".I : < = _ ,) 4 .I I ci l: I 1 I i HILI !iIiI , w N -_ '- - T<ry1, < x3;31313;"':"';',..I11,..1,, 3,3131 '= =1ria. A.:2 ', 1~: C :::�I ,rv. rv,-. (t!_itbtl Q _ -ti , i WiN :mrninm;mio � + _..-.7i L,51,1s.71Z,,-1,,,, ',?,0,ri td,-,,711--.! I -: } \8* .;-_ i'o ,1-4;_!� • W Yi r \ ITv:i==-i�1+Ic,.,..9,Iclr, hielo"� 'n, F_. II N y NIi : :r,210a � ,�; a1� > \� . f LLx 6 \ . s' OI ; _ •o © ' 06ti • n �a \ - Vu h . ' Z 1 p� J 0 r. O .. ..-_ -_-..._ (.0t 7396 3_2C.5f F.6^,) 1 • Ci.- j1C-T-_'1n 31 J ei• eF,'rs • W ,. g V = i 9Q 0 Z r r �o- o.�s , Vji;nom w • V �:� . . �� . IN!Earl a I;H_ .. - c- 1 f --VI"'�� _- ;� _ /' , .. .itLitliz.•:-.Zer4_ - . So-go.4►s rr:14 :341610 • e -,:_w-t:. � _ .� \ Aw _ = ' - a0c) a ay.-..,,,,, p ,37 %1 . b'" • uuca. / d.\ r r� ® _ __ . . .CD''--t )--,:.:TYY 16 _ Off`) i • =^__ tlJ �= 4 `� a �i�� i o :� =- I - - —ammo`000Mt3LSr7 • 1.1-, m '` AS Zr5, --- - - - ,I _ -- - .6!,Z3: M.1r.CZ.5w•: _ .♦ 31• 2?', t' •r .._.. _.... : 7,1.1E- M c • THIS PAGE INTENTIONALLY LEFT BLANK • •� APPENDIX C CITY OF REDDING Appraisal Excerpts • 9763 ORIOLE LANE PALO CEDRO, CA 96073 (916) 547-3319 co co William B. Hutchinson, SCV CRA REAL ESTATE APPRAISAL SERVICES July 23 , 1990 M.L. Stern, Incorporated 8350 Wilshire Boulevard , Beverly Hills , CA 90211 Attention: Msrs . Bill. Easterling Paul White Re : Appraisal report of real property within the proposed boundaries of Shasta View Extension Assessment District No . 1990-2 , City of Redding, Shasta County, California . Gentlemen: In response to your request , we have completed our investigation, and have prepared an appraisal report for the real property ( land) within the boundaries of the avove-referenced district , identified as a portion of the Ni of Section 16 , T. 31N. , R.4W, M.D.M. , and is further identi- fied on the Assessment Diagram Maps as prepared by Sharrah, Dunlap , and Associates , dated May 1990 , and enclosed with this report . The property under appraisement contains a total of 309 .46± acres ; 160 separate par- cels of land , of which, 156 are subdivided lots . This appraisal is subject to satisfactory, workmanlike completion of the proposed road and sewer improvements , as per specifications and maps pre- pared by Sharrah, Dunlap and Associates , and included in this report . The report is also subject to the Assumptions and Limiting Conditions con- tained in the appraisal addendum. After careful consideration of the available , comparative data, we have estimated the Fair Market Value of all land within the proposed district , as completed, at $13 ,664,500. , as of July 23 , 1990 . --THIRTEEN MILLION SIX HUNDRED SIXTY FOUR THOUSAND FIVE HUNDRED DOLLARS--- This letter is an integral part of the appraisal report . The report con- tains the definition of Fair Market Value , and the report is the sole property of your company and its ' representatives . Publishing rights are granted to M.L. Stern, Incorporated, and its ' associates . Respectfully, HUTCHINSON APPRAISAL SERVICE •William B. Hutchinson, SCV CRA Real Estate Appraiser WBH: cj • ..__ _ I, �. - )./ - • .. - ' ' A ` .:"X;`, •j ' `-r' a,Il' /1 111.nllr • ' I I. . SII/I UNI! Shasta View Drive ExtensiSDist. "1" 16 r.. 1:. Iv:, . , 4' •I: ..I l r. �✓ rl..MJ 5,5 0.154 r1. 11 ' v Il WO melt' • 4uonl.,M i o eliel LOCATIONAL MAP t 'n 1!•I t^ nnar n i. I.'tU 11 'B oPo[:. A J' • rl•. r 111N_ 195 (9 7/23/90 W.B. Hutchinson • Round Min. • - Y 1----� In .'I 41V 11. . Lake II:ot. . I SItoS .M,D:. .��, pAr i I i • --ri s cr. f 1. .._ - h °^ 711111 l� "roan' I •"-% I' Sri,:IA, 1 S,as:A o.0 ,... Mln.Dale �• 1 - ..__. Ingot • ° ( 1.. t n 1 r ED 9 woof \/ ' 2rEl. InrS I pl-rf' CLOVER Aft N. / Ill [I 610,-- •. po 61C•DnFI lLsy,lt au\S�� J E1.6400 t •,1''1 Central o. 8V 6 �� �,1 sE .o . ' Valley El. Es Jts 9.5 14.5 +to i l s ummd Cill n„ 1 Projeil ,p „r+ MIIAeso `'r ; EI." 'E' CII tl • p0 \ r Y •O ! Oak Run Ml6nttolr 5 . ' S 5.: •o El. ,GoO 9 Ilunc/PI ,f. 2 4• BurlGsp , • 2.5 0 & t ,v, u w 5 '� sn.su 55% �d 14.5 1 _.],l • 2• .5 - _• cull (i' Bella'lisle " ,, ,-•1 1 • 1.5 2.5 PO • et.sl0 ild ''.l II'. AGS.KI I• .,h1 All e 4• t �.,,e50 ' LAff OI/ 1 • \S4di ••Reddin(�,E/,!_ ` �, 12 p0 • ��•1 4rE�� $[Arl 1. 111 21 t� m Wh.273 '' rrimrlronEs 1 . c 19.5 El.»3s Iwoa'I� I /t P9.5 4.5 u-ti �. // l.ur1E\�j.i1 �. /;,71"..7.-...,77.:34... fity n s 1 -r 1 • EL,G0 �� {. • / o. P �l'Antnrtlt 'nl• •Palo C1 TO. 2.5 +t+'tt� ` . ° ..•111111 ,En 11 N ",t, ,{jl 1 nr' .r C o A I, . Sn ,N OW s 12 n. 2 3.5 dt c"•r // J)(!10g;.?nlemne .u „nH • Mlle "�4' ° 1K,\ LNIIN •Krn. 1 r _./..,•9' •t` REPOOKI rte, 12.5 ,./1.,`/\ F • .`/ 1 7 to 4 unronr G• MIMGIi Ipt ) JMrw.1,i,o,, C' `f•4=11 IE IIJ u pn :f 5.5 vo tnwl�if nw6o tv 18 'S p, Vi. .--i___. CloJtldale .; •o 9 4 All 2 5 P 6.5 17\yr v r M• m:'b Nl•'If .. .IE nI MN YU n/y1iN Vn V[I �„q II ,r �'� P • t' it, r t• np ink Shinelclown. c T. _ ,l El.34110 �. 2 ,ra '. r Anderson 2� ""' Olinda. r °p i 0.5 r,111 own* • NO �' - 8.5 n, A 9i rAnn.L stns f4 PCA otp °° I•q '►� 'CA //1/4.0C/g/11. Gr VIII( \• n • /�� -- /nRW1AlIS 4/ !��` qtr p•' (1'/r • limina �^rl o Y EL 173 P cul nuwr:J ------ rn"1 .' 1.5 c`',11IE,ii e � IDIr �-'�6 - Po Mahon 's ....ft,' 20 pp ; Collonwood I A L I1: IsN.NCN so A6 61.7000 e 1l' rr� An -"�/ ,..-.1‘ 'l• i7.sr �. r• MMIOM ., �� -\.-✓` S-��_ SHASTA �.�1.5 �� -��� n.mrc4n4 Eri Sn4, On. __ 4 w MALI r VI (//-�F- ,`�{RGAIIN AD (A1'!/ UI 6311 14 i- s Of 1;t 0 Y„,ft o IO INSNIP Nal • M • ° 16.5a 2.w l led9. • IS Bowman 1 A6 n 20rl____.„ o EL. 1650 4'4 •10 -Paynes Geek 4: ,.1 '' p:11 • ro\� ao. 'D f1 1 Dales j-- • T. �ny C'J `p, El_f4• --- I--•r • lydnsrille `d1 \ 10 1!1 r; 9rlJ AD 1 O .o • at,•ro J - �--! S • El tp x [I rn 1 1 -__-•p° 5151= IUHNL p% 4. : Bend 11 s I io _ I HowalA '4 19.5 to. 1 Meadows ' to < 4 + [l.4170 I. J NOUN°MIN. qp ,,i.....,":54, ,Tc TErIAAIA WILDLIFE I • 'Irw• Si, '[ Ra. ‘,.,01...d 1 0�•�� oa,01'p4,p r� c+; • Red Bluff •`� :t .,e[`t :Gn AIANAGEAIEN7 rAREA l.11 rY f EL.301 'I' • • _;7^Pr I LONGS ' Gr 9 T2 ..14.11 /tt 2 - CMr G ' __I _ El.�tl.3 tt• I An - r•, I.__• ('� El:.A l I �`� ;•N�„10•11' An f4[ m AI 1.5 w,1 $i AOIE .1 N17,, �In P X,I 1 1I tr ,.......„.._..4 EE 7063 = rN.o g REFUGE b� 1-G f urn nllr'I __ 1 .____ __• ____ +'�M.; AD ruin` 11.2.1 1 , 1 OLW/I7 PK. r rBMNaaft Cr. t' 2t� 1 fin., r• • r,1Y1a, Z 11 i 1 " I . . iJ J -,.,___J- � 410 n,.nt 2.S.v`. 5 1 • I 14102 4r 1 • EL.3774 . 11 7, . I IRON SUN. _ P10bSIIa • f riotA I a \, c,gpw Ji '�.1.5 Cat( . y / \1 T.I.I N111 II yam,s--4'I s.r 1 • AD 6- 1-5 E1.7, ..~ • .•4 i rr.*MI • >� leliama I 'sr Ir s1' ' IINA.r• • "• los Molinos r n AY. A 2 J S 11..716 I iD BRUSHY AEI N. :.t Grll U - Gpl till o !. !l ?U60 • I [l 3677 $ • e1.,s 9 El 727 PRO[IONIONY ( 1 Ilenleyyille t Ricldirid 7 cAalron !) l PE. n ( . 1 • 9 R • AMA Iu i SU..-An 7 [TI nor nn.r.awnl•o•o ',nun,n CO. , r2 11-7319 � • ..p /u.il' s_ l'' ro^iw MO .r� „ GaIY."IV 1'V . rU-. I.. .:: . yn l;. Irl i P 411 110 3 SUMMARY OF SALIENT FACTS Name of Project: Shasta View Extension Assessment District No. 1990-2 Date of Appraisal Report: July 23 , 1990 Date of Valuation Estimate : November 1 , 1990 Census Tract: I/0114 ( 1980 Census ) Property Identification: Por . N2 of Sec . 16 , T. 31N, R.4W M. D.M. (Map Addendum Exhibit A) County: Shasta City: City of Redding, California Size of Project : 309 .46± Acres Highest & Best Use of Land: Single Family Residential Zoning: Unclassified, R-1 ; General Plan = 2 Dwellings/Acre . Owners of Record: Exhibit E (Addendum) Map Identification: Parcels //1-160 inclusive , (Exhibit A, Addendum) Engineers ' Cost Estimate : Exhibit B&C (Addendum) Purpose of Appraisal : Estimate total land value within proposed district boundaries for purposes of bonding assessments . Topography: Level HUD Flood Zone : Mostly Zone C; Some Zone A at eastern edge of District. Utilities: City of Redding electrical & water. City sewers . P.G.& E. natural gas . Pacific Bell Telephone . Viacom Cable T.V. Vegetation: Oak Trees , manzanita. Estimated Fair Market Valuation at Completion: S13 .664.500 . (Land Only) J • 12 DEFINITION OF MARKET VALUE The most probable price which a property should bring in a com- petitive and open market under all conditions requisite to a fair sale , the buyer and seller , each acting prudently , knowledgeably and assuming the price is not affected by undue stimulus . Implicit in this definition is the consummation of a sale as of a specific date , and the passing of title from seller to buyer under conditions whereby: ( 1 ) buyer and seller are typically motivated ; (2) both parties are well informed or well advised , and each acting in what he considers his own best interest ; (3) a reasonable time is allowed for exposure in the open market ; (4) payment is made in terms of cash in U. S. dollars or , in terms of financial arrangements comparable thereto; and ( 5) the price represents the normal consideration for the property sold , unaffected by special or creative financing , or sales concessions* granted by anyone associated with the sale . •• Adjustments to the comparables must be made for special or creative financing or sales concessions . No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area ; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions . (FIILMC Form 439) , revised July 1986 . FUNCTION OF APPRAISAL': Estimate the prospective market value (Retail Value ) of all land within the indicated boundaries of proposed Shasta View Extension Assessment District for use by the bonding agents in determining assessment levels . PURPOSE OF APPRAISAL: Bonding collateral for assessment work, DATE OF APPRAISAL: Report date , July 23 , 1990 Valuation date , November 1 , 1990 (Estimated date of completion) • 13 HIGHEST AND BEST USE The term "highest and best use" , as used in this report , is defined as being that use which will yield the greatest net return over a given period of time . This use cannot be speculative , nor can it be contrary to existing regulatory ordinances . In analyzing and estimat- ing highest and best use , the use must meet four criteria , being ( 1 ) physically possible , ( 2) legally permissible , ( 3) financially feasible , and (4) maximally productive . To determine the highest and best use , consideration must be given to the individual features of the land itself, such as size , shape , location, topography, type of soils , mineral deposits , availability of rail , highway, other transportation, water and utilities , the trend of surrounding development , and the demand for property of this type in the current real estate market. Based upon these requirements , it is considered that the highest and best use of the subject lands , as a whole , is for : SINGLE FAMILY RESIDENTIAL LOT DEVELOPMENT The highest and best use of the subject land as if vacant , therefore , is estimated to be for development in the forseeable future to single- family residential subdivisions with a probable density, as regulated by current and proposed city zoning, of approximately two (2) lots per acre . 411 28 RECAPITULATION Fair Retail Market Value of Total Finished Lots : $ 8 ,438 ,000. Fair Retail Market Value of Non-Subdivided Acreage: $ 5, 226 ,500. Total Fair Retail Market Value of Land Within District: $13,664, 500. THIRTEEN MILLION SIX HUNDRED SIXTY FOUR THOUSAND FIVE HUNDRED DOLLARS Comparative data from over eight competing subdivisions within the City of Redding was used to ascertain market trends , absorption rates , price levels , buyers motives , and sales progress for individual dev- eloped lots of approximately 1/3 acre in size . After adjusting for those differences not found in the subjects ' lots , and for those diff- erences not found in the comparables , value allocations have been made 1 for each of the developed lots located within the district boundaries . J No difficulties in selling lots within the district is anticipated, and current indications are that a brisk sales market has existed for the past twelve months , and should continue indefinitely. Ten acreage sales were analyzed in order to establish the fair market value for six parcels contained within the district, which have not been subdivided and developed. These six properties have direct mutual benefit from the street and sewer improvements which will be installed by the owners . A definite higher level of value for acreage within the City of Redding limits has been observed by analysis of the market. During the past twelve-eighteen months , a vigorous market and demand for vacant land has existed, with most realtors experiencing more de- mand than listings . Redding, and Shasta County has been discovered by much of the population of California desiring a more rural lifestyle away from high crime areas , earthquakes , and congestion. In valuing the two entities ; vacant lots and vacant acreage, the est- imated fair market values do not include the potential assessment bonds for this district , and the Clover Creek Sewer District. These bonding amounts are considered assumable by the owners and buyers of the lots . 411 51 CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS CERTIFICATION: The appraiser certifies and agrees that: 1 . The appraiser has no present or contemplated future interest in the property appraised ; and neither the employment to make the appraisal , nor the compensation for it , is contingent upon the appraised value of the property . 2 . The appraiser has no personal interest in or bias with respect to the subject matter of the appraisal report or the partic- ipants to the sale . The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race , color or national origin of the prospective owners or occupants of the property appraised , or upon the race , color , or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. 3 . The appraiser has personally inspected the property, both inside and out , and has made an exterior inspection of all comparable sales listed in the report . To the best of the appraiser ' s knowledge and belief , all statements and infor- mation in this report are true and correct , and the appraiser has not knowingly withheld any significant information. 4. All -contingent and limiting conditions are contained herein ( imposed by the terms of the assignment or by the undersigned affecting the analyses , opinions and conclusions containde in the report ). 5 . This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which the appraiser is affiliated . 6 . All conclusions and opinions concerning the real estate that are set forth in the appraisal report were prepared by the appraiser whose signature appears on the appraisal report , unless indicated as "Review Appraiser" . No change of any item in the appraisal report shall be made by anyone other than the appraiser , and the appraiser shall have no respon- sibility for any such unauthorized change . CONTINGENT AND LIMITING CONDITIONS : The certification of the appraiser appearing in the appraisal report is subject to the following conditions and to such other specific and limiting conditions as are set forth by. the appraiser in the report . 1 . The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title hereto , nor does the appraiser render any opinion as to the title , which is assumed to be good and marketable . The prop- erty l is appraised as though under responsible ownership. J • 4 52 . 2 . Any sketch in the report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraiser has made no survey of the property. 3 . The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been made prior to completion of the report. 4 . Any distribution of the valuation in the report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not by used in conjunction with any other appraisal and are invalid if so used. 5, The appraiser assumes that there are no hidden or unapparent conditions of the property , subsoil , or structures , which would render it more or less valuable . The appraiser assumes no responsibility for such conditions , or for engineering which might be required to discover such factors . 6. Information, estimates , and opinions furnished to the app- raiser , and contained in the report , were obtained from sources considered reliable and believed to be true and correct . However , no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser . 7 . Disclosure of the contents of the appraisal report is gover- ned by the Bylaws and Regulations of the professional app- raisal organizations with which the appraiser is affiliated . B. Neither all , nor any part of the content of the report , or copy thereof ( including conclusions as to the property value , the identity of the appraiser , professional designations , reference to any professional appraisal organizations , or the firm with which the appraiser is connected ) , shall be used for any purposes by anyone but the client specified in the report , the borrower if appraisal fee paid by same , .bhe mortgagee or its successors and assigns , mortgage insurers , consultants , professional appraisal organizations , any state or federally approved financial institution, any department , agency , or instrumentality of the United States or any state or the District of Columbia , without the previous written consent of the appraiser ; nor shall it be conveyed by anyone to the public through advertising, public relations , news , sales , or other media , without the written consent and app- roval of the appraiser . 9. On all appraisals , subject to satisfactory completion, repairs , or alterations , the appraisal report and value conclusion are contingent upon completion of the improve- ments in a workmanlike manner . Date 723/.9 Appraiser( s ,f3 iG�2W • ASSUMPTIONS 1ND LIMITING CONDITIONS • 53 • This Appraisal Report and Valuation contained herein are ex- pressly subject to the following . assumptions and/or conditions : 1 . Title to the property is marketable . 2. No survey of the property has been made and property lines ( actual or proposed) as they appear on the groud are assum- . ed to be correct. 3. Data , maps , and descriptive data furnished by the client or his representatives are considered accurate and correct. 4. No responsibility is assumed for matters of law or legal interpretation. 5. No conditions exist that are not discoverable through nor- 'mal , diligent investigation, •which would affect the use and value of the property. 6. The valuation is based on information and data from sources believed reliable , correct, and accurately reported. 7. The Value Estimate is made subject to the purpose , date , and definition of value . 8. The appraisal is to be considered in its entirety, and use of only a portion thereof will render the appraisal invalid. 9. This appraisal was made on the premise that there are no en- . cumbrances prohibiting utilization of the property under the appraiser' s estimate of highest and best use . 10. Possession of this report or a copy thereof, does not carry with it the right of publication nor may it be used for any other purpose by any other person other than the client , • without the previous written consent of the appraiser , and ' then, only with proper qualifications . 11 . Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations , news , sales ,or other media without the written consent and approval of the author, particularly as to val • uation conclusions , the identity of the appraiser ,or firm with which he is connected , or any references to the American Institute of Real Estate Appraisers, or the app, • raiser ' s candidacy. 12. The appraiser shall not be required to give testimony or appear in court by reason of this appraisal wi1th reference to the property described herein, unless prior arrangements have been made . Furthermore , additional consultation or changes requested by the clients , which add or subtract from the com- ( pleted report , shall be arranged with the appraiser and billed additionally. Assumptions 4iid Limiting Conditions (co ' hued) 54, 13 . No responsibility is assumed for building permits , zone changes , engineering or other services or duty connected with legally utilizing the subject property. 14. It is understood that compensation for the appraisal ser- . vices is in no way contingent upon the valuereported, and is dependent only upon the delivery of this report. 15. To the best of the appraiser ' s knowledge , the pre-existence and present existence of Radon has not been detected on this property, orif detected , the level of Radon present is con- sidered sate , according to the standards established by the Environmental Protection Agency . The appraiser however , makes no guarantees or warrantees that the property has been tested for the presence ot Radon, or if tested , that the tests were conducted pursuant to EPA standards and proceedures . 16 . All engineering is assumed to be correct. The maps , cost est- imates and other data in the engineers ' preliminary report are assumed to be accurately correct . 17 . That this report has been prepared on July 23 , 1990 , and that the effective date of the valuation of the subject lands is November 1 , 1990 , the effective date ot completion ot the pro- posed street and sewer improvements . No responsibility is ass- umed- for any subdivision map recording after June 23 , 1990 , the effective date ot the engineers ' preliminary report and owner- ship listing. • 9763 ORIOLE LANE 5 5 PALO CEDRO, CA 96073 ;.- (916) 547-3319 William B. Hutchinson, SCV CRA REAL ESTATE APPRAISAL SERVICES REAL ESTATE APPRAISAL QUALIFICATIONS General Education: California State Polytechnic College, A.A. Degree, 1956. Major: Animal Science Professional Education: California State Board of Equalization Courses: Residential Unit Appraisal Income Approach to Value Appraisal of Water Companies and Water Rights Valuation of Mines and Quarries Valuation of Open Space Lands Rural Property Valuation Appraisal of Possessory Interests Public Relations Sales Ratio Analysis Use of Computers in Appraisal American Institute of Real Estate Appraiser Courses: Course 1A, Appraisal Principles Course 1B, Capitalization of Income Course 8-2, Residential Valuation Course 8-3, Standards of Professional Practice Society of Real Estate Appraisers, California Seminars: Expert Witness Testimony Service Station Property Appraisal Capitalization Rate Derivation for Special. Properties Los Angeles Metropolitan School of Business Courses: Oral Connmunications General Psychology Professional Affiliations, Designations and Accreditations: Advanced Candidate for R.M. Designation - A.I.R.E.A. Member, Chapter 60, Sierra Nevada Chapter of A.I.R.E.A. Senior Member, International Institute of Valuers, S.C.V. Designation Senior Member, National Association of Review Appraisers and Mortgage Underwriters, C.R.A. Designation REAL ESTATE APISAL QUALIFICATIONS (continued. 56 ' Appraisal Experience: 1956 - 1967 Los Angeles County Assessor's Office, Senior Appraiser. 1967 - 1978 Shasta County Assessor's Office, Senior Appraiser. 1978 (Portion) General Appraisal Company, San Francisco, Senior Appraiser. 1978 - 1982 First Interstate Bank, San Francisco, Senior Appraiser. 1982 - Present, Owner of Independent Fee Appraisal Business, Palo Cedro, CA. Assignments, County of Los Angeles: Appraisal of all properties in Covina, West Covina areas. Appraisal of all Livestock and Farm Equipment for county. Branch Office Manager, Van Nuys, CA. Law Analyst, Legislative & Legal Division, Los Angeles County Assessor. Assignments, County of Shasta: Senior Appraiser in charge of Rural Appraisal Department, 6 employees. Senior Appraiser in charge of Commercial-Industrial Department, 3 employees. Appraisal of Mines and Quarries. Appraisal of Possessory Interests. Appraisal of Water Companies and Water Rights. Investigation of Church and Welfare Tax Exemption Claims. Appraisal of Rural Lands under Open Space Contracts. Senior Appraiser in charge of Standards Division, consisting of computer assisted appraisals and sales ratio analysis. Assignments, General Appraisal Company, San Francisco: Masonite Corporation, Calpella, CA. , 29 Mile Road Valuation. San Francisco Community College District, Land and Buildings Valuation. Griffith Foundry, Alameda, CA. , Industrial Appraisal . / U.S. Department of Housing & Urban Development, San Francisco. , Multi-Story Office Building Rehabilitation. Narrative Appraisals of five other large industrial properties in California. Assignments, First Interstate Bank: (Partial List) Appraisal of approximately 600 Residential Properties for loan purposes. Appraisal of 50 Multi-Family, Two-Four Unit Properties & Condominiums. Appraisal of Mobile Homes and Land, approximately 30 properties. Rising River Ranch, Estate of Harry Crosby, Cassel , CA. Fairmont Hotel , Fairmont Hotel Corp. , Dallas, Texas. Lassen Comm pity College, Susanville, CA. Ponderosa Motel & Bonanza Restaurant, Redding, CA. Medical-Dental Complex, Dr. D. Peterson, Redding, CA. Shasta College District, Museum Collection, Redding, CA Seagull Villa, 175 Unit Senior Citizens Housing Complex, Crescent City, CA. Christian & Johnson Nursery Company, Ray Johnson, Chico, CA. Woodridge Subdivision, BDR Inc.. , Weed, CA. Calvary Baptist Church, construction package, Redding, CA J.T. McDonald Estate, Ranch Appraisal , Cottonwood, CA. Coast to Coast Store, Commercial Appraisal , Crescent City, CA. • REAL ESTATE APPReL QUALIFICATIONS, (continued) 411 57 Approved for FNMA - FHMLC Conventional Sellers: All Valley Mortgage, Walnut Creek, CA American Bancorp, Beverly Hills, CA American First, San Jose, CA Argent Mortgage, Sacramento, CA American General , Redding, CA Bank of America, Redding, CA Bank of America Trust Department, Chico, CA Bank of California, Redding, CA Bank of Commerce, Redding, CA Bank of the West, San Jose, CA Benevest, Sacramento, CA Cal Equities, Fair Oaks, CA California S&L, Sacramento, CA Central Bank, Walnut Creek, CA Chrysler First Credit, Redding, CA Country National Bank, Redding, CA Cypress Financial Corp. , Fremont, CA Equitable Funding & Investments, Redding, CA Fireside Thrift, Redding, CA First Alliance Mortgage, Pleasant Hill , CA First Deposit Savings Bank, Redding, CA First Interstate Bank, Northern California Gibralter S&L, Northern California Greentree Acceptance, Sacramento, CA Hardin Mortgage, Santa Rosa, CA Homequity, Walnut Creek, CA Household Finance, Redding, CA Investor's Mortgage Funding, Redding, CA Meracor Mortgage Corp. , Sacramento, CA McCollum Funding, Inc. , Redding, CA Mt. Shasta Financial Services, Mt. Shasta, CA North Valley Bank, Northern California Placer S&L, Auburn, CA Provident Central Credit Union, Northern California Redding Mortgage & Investments, Inc. , Redding, CA Security Pacific Bank, Walnut Creek - Redding, CA Security Pacific Housing Services, San Jose, CA Sierra Central Credit Union, Redding, CA Specialized Funding, Redding, CA Simpson Employees Credit Union, Anderson, CA The Bayshore Group, San Mateo, CA Tri Counties Bank, Northern California TRW Appraisals, Walnut Creek, CA Timberline Bank, Siskiyou County, CA Valley Federal S&L, Northern California Wells Fargo Bank, Redding, CA Wells Fargo Bank Trust Department, Sacramento, CA Approved appraiser for the Department of the Navy, Western Div. , Naval Facilities Engineering Command. Approved appraiser for the State of California, Department of Veterans l Affairs, Sacramento, CA REAL ESTATE A•ISAL QUALIFICATIONS, (Continue 58 Assignments, Fee Appraisal Business: (Partial Listing) The Four Corners Shopping Center, Redding, CA Gibralter S&L Office Building, Chico, CA General Services Agency, U.S.A. , Government Rent Survey, Las Vegas, NV First Church of the Nazarene, Redding, CA Proposed Condominium Complex, Chico, CA Double EE Liquor Mart, Hamilton City, CA Grand Slam Ranch, Ord Bend, CA Rice Land Appraisals, Bank of America Trust, Chico, CA La Hacienda Restaurant, Chico, CA Orchard Lanes Bowling Center, Chico, CA Proposed Mini-Warehouse Complex, Redding, CA Mangrove Veterinary Hospital , Chico, CA Antlers Shell & Mini Mart, Lakehead, CA John's Exxon & Mini Mart, Project City, CA Chico Auto Parts, new construction, Chico, CA Air Filtration Corporation, Oroville, CA American & Import Engines, Redding, CA Sunset Hills Golf Course, Chico, CA J&C Glass Company, new construction, Chico, CA Dr.Eugene Nutley, Medical Office, new construction, Redding, CA 45 Unit Apartment Complex, Chico, CA Perko's Restaurant, new construction, Red Bluff, CA D&D Carwash, new construction, Red Bluff, CA Proposed Office Complex, Ochinero Construction Co. , Redding, CA Hignell & Hignell , new office construction, Chico, CA Quail Run Professional Plaza, Paradise, CA Taylor Auto Parts, new construction, Anderson, CA Bethel Assembly Church, Redding, CA Orland Orange Growers, Association, Orland, CA Willig Freight Lines, Redding, CA Cal Gas Corporation, Redding, CA Daniels Interiors, Redding, CA Fife Metal Fabricating, Redding, CA Little Star Ranch, Junction City, CA Corning Truck Repair, Corning, CA Country Shopping Center, Redding, CA Bechelli Cleaners, Redding, CA Active Office Equipment, Redding, CA Taco Den, Redding, CA Borelli Logging, Redding, CA Trinity Market, Weaverville, CA Heritage Woodworking, Redding, CA Redding Physical Therapy, Redding, CA Robathan Optometric Offices, Redding, CA Presleigh & Arel Law Offices, Redding, CA Harrison-Smith Law Offices, Redding, CA Hogue Equipment, Inc. , Redding, CA Wentz - Holiday Markets, Redding, CA • Radio Mart Store, Redding, CA General Services Agency, U.S.A. , Government Rent Survey, Auburn, CA Sausage Factory, Redding, CA Williams Furniture. Store,. Susanville, CA Appraisal of over 2000 residential properties in Shasta, Siskiyou, Trinity, Tehama, Glenn, Butte, Plumas, and Lassen Counties. • •r • I THIS PAGE INTENTIONALLY LEFT BLANK • APPENDIX D CITY OF REDDING General Information and Economic Data (Source:City of Redding and Chamber of Commerce) • • THE CITY General Description The City of Redding (the "City"). comprising approximately 50.2 square miles, is located at the northern end of the Sacramento Valley, 160 miles north of Sacramento and 230 miles north of San Francisco. It is the county seat of Shasta County and the major trade, recreational and commerce center for the northern central and northeastern portion of California. The City is situated in the midst of a vast recreational area that includes nine national forests, six wilderness areas, two state parks and one national park. The City experiences hot summers and mild winters. Annual precipitation is approximately 38 inches. Elevation within the area varies from 400 feet above sea level to 10,456 feet at Lassen Park,just outside Shasta County. Municipal Government The City was incorporated on October 4. 1887 and operates as a general law city with the council-manager form of government. The City Council consists of five members elected "at large" for four-year overlapping terms. The Mayor is selected by the City Council from among its members. The current members of the City Council are as follows: NANCY KAY BUFFUM, Mayor. was elected to the City Council in 1988. Education: Attended Shasta College, Redding, California. and the University of California. Berkeley. California. where she majored in Political Science. Prior to her position on the City Council. Ms. Buffum served nearly six years on the Planning Commission for the City. Ms. Buffum currently sits on the Forward Redding Foundation Board, the Private Industry Council, the Board of Directors of the Chamber of Commerce and the Transportation Committee. Regional Transportation Planning Agency. Redding Area Bus Authority, Redding Redevelopment Agency. Superior California Development Council. and serves as City Council liaison to the Convention and Visitors Bureau, Redding Museum and Art Center. Carter House Science Museum, Planning Department. and Traffic and Parking Commission. MIKE DAHL, Vice Mayor, was elected to the City Council in 1986. Education: Bachelor's Degree in Political Science and a Master's Degree in Public Administration from California State University, Chico. California. Mr. Dahl is currently Marketing Director for SECO Surveying Company and SECO Manufacturing Company. Inc. Mr. Dahl's community involvement has included Chairman of the Shasta County Economic Development Task Force, Regional Transportation Planning Agency. Regional Wastewater Planning Commission. Chairman, Redding Area Bus Authority. Redding Redevelopment Agency, and he currently serves as City Council liaison to the Public Works. Personnel. Finance, and Recreation and Parks Departments. CARL ARNESS, member, was elected to the City Council in 1990. Education: Bachelors and Master degree in Civil Engineering. University of Washington. Mr. Arness is a registered professional Civil Engineer in California and recently retired as Director of Public Works for the City. Currently. Mr. Arness is a representative on the Redding Area Bus Authority. Norther-1' California Power Agency. MSR Power Agency. Central California Power A,-‘ncy, Transmission Agency of Northern California. and serves as a liaison to the Electric Utility. LEE D. FULTON, M.D., member, was elected to the City Council in 1964 and is currently in his 25th year of service on the City Council. Education: Bachelor's Degree from the University of California. Berkeley. California. and M.D. Degree from the University of California School of • • Medicine. San Francisco, California. Dr. Fulton works for the California State Health Department in Redding. Presently, Dr. Fulton is a representative on the Regional Transportation Planning Agency and Shasta County Community Action Agency Advisory Board, Redding Area Bus Authority, Redding Redevelopment Agency, Shasta County Air Pollution Control Board, and serves as liaison to the Police and Fire Departments. CHARLES MOSS, member, was elected to the City Council in 1990. Education: Bachelor of Science degree in Business Administration with emphasis in accounting and economics. Mr. Moss started and managed, with other members of his family, two successful lumber companies. He is currently a representative on the Airport Land Use Commission. Local Agency Formation Commission, and serves as liaison to the airports. The City Manager is appointed by the Council and is responsible for implementation of Council policies and for day-to-day operation of the City. The offices of City Clerk and City Treasurer are elective, for four-year terms, and the City Attorney is appointed by the Council. The City is regarded as a full service city and municipally provided services include planning and building regulation, police protection, fire protection, parks, recreation, electric, water, sewer, solid waste and operation of two airports. A full-time staff of 638 employees and 276 part-time workers carry out the functions of municipal government. City employees have been represented by various unions since 1965. Population Characteristics The City was one of the fastest growing cities in California between 1970 and 1980. growing to 41.995 residents in 1980 from 16.659 in 1970. This represents an average annual growth rate of 9.7%. The average annual increase for the State of California as a whole during the same time period was 1.6%. A January 1989 estimate by the California Department of Finance placed the City's population at 59,886, an increase of 43% over the 1980 U.S. Census tabulation. The City's population represents approximately 42% of Shasta County's population of 143,106 in 1989, according to estimates by the California State Department of Finance. The following table indicates population growth for the City and Shasta County from 1950 to 1989. City of Redding and Shasta County Population from 1950 to 1989 City of Redding Shasta County Annualized Annualized Percent Change Percent Change Year Number Over Interval Number Over Interval 1950 10,256 36,413 1960 12.773 2.22% 39,468 0.81% 1970 16,659 2.69 77.640 6.95 1980 41.995 9.69 119,449 4.40 1985 48.500 2.92 128.100 1.40 1988 55,439 4.56 137.032 2.27 1989 59.886 7.35 143,106 3.86 Source: 1950-1980 figures from U.S.Census.1985. 1988 and 1989 estimates from the California State Department of Finance. It is estimated that the City will add approximately 800 new households per year for the next ten years. The following table sets forth a projection of the City's population growth over the next forty years. • 1111 City of Redding Estimated Population Growth 1990-2010 Annualized Year Population, Growth Rate 1990 64,912 4.2% 1995 78,591 3.6 2000 92,284 2.9 2005 105,487 2.8 2010 116,656 2.4 Source: City of Redding Population Forecast prepared by Economic Sciences Corporation April 28, 1989. The Redding area is expected to have 40 or more percent of the total Shasta County population because of a variety of factors that will support urban development, including sewers, public water supply,jobs, shopping, recreation opportunities and reduced commute costs. Housing Housing in the City is less costly than in other urban areas in the State of California. The following table sets forth the median price of homes in urban areas of California. Comparison of Housing Costs Single Family (1989) Redding Sacramento San Jose San Diego Los Angeles San Joaquin Valley Median priced three-bedroom $83,500 $107,895 $268,903 $177,736 $220,253 $96,510 home Comparison of Housing Costs Multi-Family (1989 Redding Sacramento San Jose San Diego Los Angeles San Joaquin Valley Median rental rate of a two-bedroom apartment $300-465 $375-525 $650+ $500+ $500+ $375-525 Source: California Association of Realtors. Industry and Employment Extractive timber and the processing of wood by-products, together with agriculture, tourism and government, have historically been the major sectors of employment in the City. Over the last decade, the City's economic base has diversified to a regional services economy supported by retail and wholesale trade plus educational, recreational, medical and government services for an area covering several counties. • The major employers in the City and the County include those in medical services, heavy forest • products, government and telephone services. Major employers, their products or services, and the number of their respective employees in 1988 are listed in the following table. • • City of Redding/Shasta County Major Employers 1988 Company Product/Services. Employees Mercy Medical Center Medical facilities and services 1,025 Simpson Pager Co. Paper products 650 Redding Medical Center Medical facilities and services 616 Shasta Community College Education 520 Roseburg Lumber Co. Plywood and lumber 500 Citizens Utilities Telephone company 370 United States Post Office Postal services 256 Pacific Bell Telephone company 244 Coopervision Electronic medical equipment 231 Sierra Pacific Industries Lumber 225 Source: "Economic Profile for Redding, Shasta County California", prepared by the greater Redding Chamber of Commerce 1988. The City has attracted new manufacturing industries through a combination of industrial development policies, the availability of a growing labor pool. comparatively low development and living costs and inexpensive power. A consistent factor in the growth of the labor force continues to be the out-migration of all types of workers from the population centers of Southern California and the San Francisco Bay area to Shasta County and other Northern California counties. A large portion of the in-migrants possess high technical and administrative skills. The following table summarizes employment by industry of workers in the County in 1984 through 1988. The figures presented are annual averages which are estimated by the State Department of Employment Development. • Shasta County Labor Market Survey Average Annual Employment 1984 to 1988 1984, 1985 1986 1987 1988 Agriculture, forestry and fishing 1,325 1.175 1,025 1,150 1.025 Construction and mining 2,225 2,378 2,750 3,025 3,250 Manufacturing: Lumber and wood products 2,100 1,800 1,875 2,125 2.500 Other manufacturing 2,625 2,575 2,375 2,525 2.675 Transportation and public utilities 2,775 2,850 2,925 3,025 3.275 Wholesale trade 1,825 1,925 2,075 2,125 2.175 Retail trade 7,950 8,275 8,625 9,550 9,975 Finance, insurance and real estate 1,500 1.525 1,500 1,525 1.550 Services (1) 7,750 8,325 9,075 10,700 11.325 Government: (1) Federal 1,125 1,150 1.175 1,200 1.225 State 1,100 1,075 1.100 1,150 1,200 Local and education(2) 5.550 5.750 5.975 5.250 5200 Total 37,850 38.803 40,475 44,375 46,475 Source: State of California Department of Employment Development (1) Includes hotels and other lodging, business services, health service and other service. (2) Local government includes employees of counties, cities and special districts. Education includes employees of public schools at both the state and local levels. According to the State Department of Labor, the unemployment rate of the City's metropolitan area was 8.1% in September 1988. Since 1984, unemployment within the City's metropolitan area has decreased 6.0%, from 14.1% in 1983 to 8.1% in 1988. The following table sets forth the number and rate of unemployed persons living within the City's metropolitan area in 1984 through 1988. Civilian Labor Force and Unemployment Redding Metropolitan Statistical Area (Shasta County) 1983 to 1988 Labor(1) Unemployment(2) Year Force Number Rate 1984 52,975 7.475 14.1 1985 51,900 6.925 13.3 1986 52.875 5,975 11.3 1987 55,150 5,150 9.3 1988 58,775 5,275 9.0 (1) Civilian labor force and unemployment by place of residence. (2) The number includes all persons without jobs who are actively seeking work. The unemployment rate is computed from unrounded data: therefore, it may differ from rates computed from rounded figures in this table. Source: State Department of Employment Development. # S • Construction Activity For the ten years ending December 1988, the City issued commercial and residential building permits valued at a total of$655,514,321. In calendar year 1988 alone. 1,735 commercial and residential building permits were issued with a total value of$90,512,932. The 1988 total value of commercial and residential construction permits represents a 21.79% decrease over the prior fiscal year. This is the result of 1987 being a record setting year for building activities in the City. New residential construction over the ten-year period represents 56% of the total construction activity. Over the same period the City has seen continual growth in its stock of commercial buildings. The annual number of commercial construction permits over the ten- year period has ranged from a low of 24 in 1982, a period of high interest rates and a nationwide recession in the building industry, to a high of 80 in 1979. The following table sets forth the value and number of permits for single family, multiple dwellings and businesses located in the City for the five fiscal years ended June 30, 1988. City of Redding Value and Number of Permits for Single Family and Multiple Dwellings and Businesses for Fiscal Years 1984 through 1988 1984 1985 1986 1987 1988 Value-Single Family $25,306,375 $331,360,634 $44,497,412 $51,913,764 $46,359,828 Number of permits 413 530 653 725 687 Value-Multiple Dwellings $12,951,176 516.627,338 $9.804,808 $9.098,682 $6,268.944 Number of Permits 34 87 20 30 13 Value-Business 518,937,390 $13,573.377 511.842,331 $21,053,060 $19,820,780 Number of Permits 53 44 38 60 55 Value-Total All Permits $57,194,941 $361,561,349 $66,144,551 $82,065.506 $72,449,552 Source: 1989 City of Redding Planning and Progress Guide. Commerce The City is a regional center of commerce for several Northern California counties. This is evidenced by its many shopping centers and malls, including two new regional shopping centers located in the Canby-Hilltop-Cypress Redevelopment Project area. Support for retail sales is derived from a retail trade area population of approximately 220,000 people for appliance commodities and approximately 80.000 to 100,000 people for convenience commodities. Large portions of this trade is drawn from Trinity, Tehama, Siskiyou and Lassen Counties. The City has the highest retail sales for taxable items per capita of any California city north of Sacramento. Taxable transactions in the City topped $823,235,000 in 1988. The number of outlets reporting taxable sales to the Cali`rrnia State Board of Equalization increased from 1,883 in 1980 to 2,404 in 1988. These trends are reflected in the following table. • City of Redding Taxable Transactions For Fiscal Years 1980 through 1988 Fiscal Year Number of Outlets Taxable Transactions 1980 1,883 $478,456,000 1981 2,014 472,586,000 1982 2,030 446,063.000 1983 2.025 525.097,000 1984 2,136 593,327,000 1985 2,195 645,807,000 1986 2,273 679,130,000 1987 2,321 750,949.000 1988 2,404. 823.235,000 Source: California State Board of Equalization. The following table sets forth a breakdown of taxable sales by type of business for the City for fiscal year 1988. City of Redding Taxable Transactions by Type of Business for Fiscal Year 1988 (in thousands of dollars) Number of Taxable Business Outlets Transactions Apparel Stores 64 $22.235 General Merchandise Stores 22 90,303 Drug Stores 17 29.882 Food Stores 62 53.679 Package Liquor Stores 13 7.519 Eating and Drinking Places 217 62.886 Home Furnishings. Appliances 92 28.227 Building Materials, Farm Implements 69 94.580 Auto Dealers and Auto Supplies 91 153.850 Service Stations 45 47,064 Other Retail Stores 3R9 77.482 Total Retail 1,074 $667,725 All Other Outlets 1.380 $155.510 Total Outlets 2,404 $823.235 Source: California State Board of Equalization. Transportation The City enjoys a strategic location on U.S. Interstate Highway 5. the principal transportation artery running north-south from Mexico to Canada which conlizcts the City to an estimated Pacific Coast marketplace of 31 million people. The City is also bisected by State Highway 299. • the key east-west transportation artery in northern California. 111 The City is served by the Southern Pacific and Amtrak for rail transportation, and Greyhound and Continental Trailways for bus service. United Express Airlines and American Eagle Airlines provide air service from the Redding Municipal Airport to cities throughout California and the Pacific Northwest. Eight truck terminals are located in Shasta County and daily service is provided by six major carriers. "THE RIDE" is the City's multi-bus transportation system and offers eight different fixed routes and demand response services. For fiscal year 1989, 'THE RIDE" had an average total monthly ridership of 36,090, of which 30,680, or 85 percent, were paid riders. Utilities Electricity, solid waste collection, water and wastewater services are provided by utilities owned and operated by the City. Natural gas is provided by Pacific Gas and Electric Company. Telephone service is provided by Pacific Bell. Community Services The City has 12 elementary schools, two middle schools, three private schools and three high schools. The school system employs 505 teachers. Shasta College, a two-year institution, offers both day and evening courses to approximately 10.000 students. In addition, Simpson College, a four-year liberal arts institution located in the City, will commence operations in September 1989. The City's parks system includes 23 improved parks. 19 open space parks, and 13 unimproved parks. Total park lands encompass 3.078 acres. City operated cultural facilities include the Redding Museum and Art Center, the Carter House Science Museum, the Martin Luther King, Jr. Memorial Center, the Teen Center, and a senior citizens center. The Redding Convention Center hosts the Shasta Symphony, conferences and conventions. The City serves as the primary medical center for Northern California. The City's two hospitals serve approximately 220,000 people in Tehama. Trinity. Siskiyou and Lassen Counties. The two general care hospitals have a total of 418 beds and employ over 1,083 full- time staff members, plus another 533 part-time employees. • 111 I CITY FINANCIAL DATA The following financial data is included only for the Durpose of providing general information. Assessed Valuations The assessment and collection of taxes is the responsibility of Shasta County. City taxes are collected at the same time and on the same tax rolls as are Shasta County, school district, and special district taxes. Assessed valuations are the same for both City and Shasta County taxing purposes. California law exempts $7,000 of the full cash value of an owner-occupied dwelling, but this exemption does not result in any loss of revenue to local agencies, since an amount equivalent to the taxes which would have been payable on such exempt values is paid by the State of California. The following table shows the taxable valuation of the City by tax roll for the last ten fiscal years. City of Redding Actual Value of Taxable Property (1) For Fiscal Years 1979 through 1989 Fiscal Year Secured Roll Unsecured Roll Tota) 1978- 1979 $ 55,966,156 $ 85,740,000 $ 641.706.156 1979- 1980 652,138,000 106,500,000 758.638.000 1980- 1981 821,316,212 74,407,796 895.724.008 1981 - 1982 947,094.550 90.930,910 1.038,025.460 1982- 1983 1,140,137.915 82,170,805 1,222.308,720 1983- 1984 1,242.597,390 84,866.370 1.327.463.760 1984- 1985 1,345,884,050 109,236,275 1.455.120.325 1985- 1986 1.469.779,770 123.715,455 1.593.495.155 1986- 1987 1,585,752,950 131,776.665 1.717.529,615 1987- 1988 1,722,844,792 146,982,677 1.869,827,469 1988- 1989 1.933,990.443 152.238.603 2.086.229.046 n)All valuations shown are "full cash value". before deduction of State-reimbursed exemptions. Includes redevelopment incremental valuation. Source: 1989 City of Redding Comprehensive Annual Financial Report and City Finance Department. City Property Tax Levy Procedures The rate of tax that the City receives is determined by a formula prepared by the County Tax Assessor, in accordance with the laws of the State of California. The City receives its proportionate share of property taxes in several installments commencing November 30 of each calendar year. The following table shows the record of tax collections over the last ten fiscal years. 11 • . City of Redding Taxable Valuations -Tangible Property Tax Levies and Collections for Fiscal Years 1979 through 1989 Total Tax Delinquent Percent of Fiscal Total Tax Current Tax Tax Total Collections Year Levy Collections Collections Collections To Tax Levy 1978/79 $1,277,587 $944,476 $156,641. $1,101,120 86.19% 1979/80 1,695.775 1.554,132 109,143 1.663.275 98.08 1980/81 1,921,948 1,682,766 109,584 1,792,350 93.25 1981/82 2,188,291 1.982,393 283,562 2,265.955 103.56 1982/83 2,673,106 2,248,393 157.467 2.405.860 90.00 1983/84 2,895.432 2.482.454 189.561 2,672,015 92.28 1984/85 3,013.756 2,693,582 204,470 2,898,002 9616 1985/86 3,155,295 3,066,434 250,485 3,316,719 105.13 1986/87 3,375.031 3,315.276 300,224 3.615.500 10712 1987/88 3.665.800 3,548,597 250,977 3,799,574 103.67 1988/89 3,890,515 3.798,606 207,161 4,005,767 102.96 Source: 1989 City of Redding Comprehensive Annual Financial Report. Revenues. Expenditures and Fund Balances The following table presents a summary of revenues, expenditures and fund balances of the City for the past five fiscal years, as reported in the City's annual financial statements. Copies of the City's audited financial statements are available upon written request directed to: Director of Finance, City of Redding. 760 Parkview Avenue, Redding. California. Pension Plan All full-time City employees are members of the State of California Public Employee's Retirement System. The City's policy is to fund all pension costs accrued. Such costs to be funded are determined annually as of July 1 by such System's actuary. Outstanding Indebtedness The following table sets forth the total outstanding indebtedness of the City of Redding as of June 30, 1989. Type of Outstanding Anticipated Source Obligation Principal Amount of Payment General Obligation Debt $ 999,154 Enterprise funds General Obligation Debt 34.766 Government funds Revenue Bonds 29,083,359 Enterprise funds Certificates of Participation (1) 68,414.581 Proprietary funds Capital Leases 685.100 Enterprise funds Capital Loan 1,063,944 Internal service and government funds. TOTAL $109,235,904