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HomeMy WebLinkAboutResolution 2007-229 retail development tax incentive agreement regarding the marana spectrum projectF. ANN RODRIGUEZ, RECORDER DOCKET: 13211 RECORDED BY: C V <y ?PIA# PAGE: 951 DEPUTY RECORDER 1016 PE3 ? NO. OF PAGES: SEQUENCE: 30 20072500263 S14ARA i *?4 P406 - -? 0 ` ]-,? I A3 * 1 12/28/2007 TOWN OF MARANA T e. RES 14:43 ATTN: TOWN CLERK & 1z 11555 W CIVIC CENTER DR MAIL MARANA AZ 85653 AMOUNT PAID $ 20.50 MARANA RESOLUTION NO. 2007-229 RELATING TO DEVELOPMENT; APPROVING AND AUTHORIZING THE EXECUTION OF A RETAIL DEVELOPMENT TAX INCENTIVE AGREEMENT REGARDING THE MARANA SPECTRUM DEVELOPMENT PROJECT. WHEREAS A.R.S. § 9-500.11 authorizes the Town to enter into a retail development tax incentive agreement under certain circumstances; and WHEREAS the Mayor and Council.. find that the proposed tax incentive to be approved by this resolution is anticipated to raise more revenue than the amount of the incentive within the duration of the agreement; and WHEREAS the Mayor and Council find that in the absence of a tax incentive, the Marana Spectrum Development Project would not locate in the Town of Marana in the same time, place or manner as it is agreeing to do under the terms of the Marana Spectrum Development Agreement; and WHEREAS the Town's finding that the proposed tax incentive is anticipated to raise more revenue than the amount of the incentive within the duration of the Marana Spectrum Development Agreement has been verified by an independent third party; and WHEREAS on December 4, 2007, the Town adopted a notice of intent to enter into the Marana Spectrum Development Agreement, as required by A.R. S. § 9-500.11 (K); and WHEREAS the Mayor and Council find the terms and conditions of the Marana Spectrum Development Agreement are in the best interest of the Town. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Marana Spectrum Development Agreement is hereby approved. SECTION 2. The Mayor is hereby authorized and'directed to execute, and the Town Clerk is hereby authorized and directed to attest to, the Marana Spectrum Development Agreement attached to and incorporated by this reference in this Resolution as Exhibit A, for and on behalf of the Town of Marana. {00007017.DOC /) - I - 1214107 FJC SECTION 3. The various Town officers and employees are authorized and directed to perfonn all acts necessary or desirable to give effect to this resolution. PASSED AND ADOPTED BY THE MAYOR AND COUNCI OF THE TOWN OF MARANA, ARIZONA, this 18'h day of December, 2007. &%K-\0F Mayor Ed Hon&'a (00007017.DOCI) -2- 121410 7 FJC MARANA SPECTRum DEVELOPMENT AGREEMENT TowN OF MARANA, ARiZONA This Development Agreement (this "Agreement") is entered into by and between the TOWN OF MARANA, an Arizona municipal corporation (the "Town") and KIMCO BARCLAY MARANA, L.P., a Delaware limited partnership (the "Owner/Developer"). The Town and the Owner/Developer are collectively referred to in this Agreement as the "Parties," and each is sometimes individually referred to as a "Party. 11 RECITALS A. Owner/Developer was formed and exists for the purposes of owning and developing approximately 170 acres of real property located within the corporate limits of the Town (the "Property"). B. Owner/Developer intends and desires to develop a regional lifestyle/entertaim-nent/power retail shopping center on the Property containing approximately 1,200,000 square feet (the "Development"). C. The Property and the proposed Development were included in and subject to the provisions of the Marana Spectrum Specific Plan (the "Marana Spectrum Plan"), approved by the Town on August 7, 2007 pursuant to Ordinance No. 2007.19. D. The Property is legally described in Exhibit A attached to this Agreement. E. The Town and Owner/Developer desire to establish certain agreements regarding the Development pursuant to A.R.S. § 9-500.05 and certain agreements in connection with development activities for the economic benefit of the Town pursuant to A.R.S. § 9-500.11 upon and in accordance with the terms and conditions set forth in this Agreement. F. The Development is consistent with the Town's long-term economic development strategies and is expected to create a source of significant tax revenue for the Town for many years. G. The Development will have a substantial positive economic impact on the Town because it is expected to provide diverse commercial and retail service opportunities consistent with the businesses targeted by the Town. The facilities to be constructed as part of the Development are expected to produce a significant number of new jobs and generate substantial sales tax 2 revenues. Consequently, the short-term and long-term benefits of the Development will offset and significantly outweigh the costs of the reimbursements provided by the Town under this Agreement. H. The Development will provide significant intangible benefits to the Town as a retail lifestyle/entertainment/power center and may also include mixed use, hotel, office and residential components. 100006071.DOC / 4) 12/18/20078:47PM MARANA SPECTRUM DEVELOPMENT AGREEMENT - 1 - 1. The Development is in compliance with the Town's adopted and approved General Plan (as defined in A.R.S. § 9-461). J. The Town is authorized by A.R.S. § 9-500.05 to enter into a development agreement with a landowner or other person or entity having an interest in real property located within the Town to facilitate development of the property by providing for, among other things, the conditions, terms, restrictions, and requirements for development and public infrastructure and the financing of public infrastructure. Because of its location and typography, the Development will entail significant atypical additional offsite and site costs requiring reimbursement for feasible development. K. In approving this Agreement, the Town Council has found and determined that certain activities relating to the Development are economic development activities within the meaning of A.R.S. § 9-500.11, that all expenditures by the Town pursuant to this Agreement constitute the appropriation and expenditure of public monies for and in connection with economic development activities and that it is appropriate to provide Owner/Developer with the reimbursement in this Agreement as an inducement to cause Owner/Developer to construct, own and operate the Development in the Town. L. The Town adopted a notice of intent to enter into this Agreement not less than 14 days before the Town Council approved this Agreement, in compliance with A.R.S. § 9-500.11. M. The Town Council finds that the Development will raise more revenue for the Town than the amount of the reimbursements to the Owner/Developer within the duration of this Agreement. N. An independent third party not financed by the Owner/Developer has verified the Town Council's finding that the Development will raise more revenue for the Town than the amount of the reimbursements to the Owner/Developer within the duration of this Agreement. 0. The Town Council finds that in the absence of the reimbursements to the Owner/Developer provided pursuant to this Agreement, the Development would not locate in the Town in the same time, place or manner as it will with the reimbursements to the Owner/Developer. P. The Owner/Developer will incur out-of-pocket public infrastructure construction costs and will make certain contributions for public infrastructure and environmental mitigation in the immediate vicinity of and directly benefiting the Development. Q. The reimbursements to the Owner/Developer provided pursuant to this Agreement are intended to reimburse the Owner/Developer for its out-of-pocket public infrastructure construction costs and public infrastructure and environmental mitigation contributions and related interest and carrying costs, as described more specifically in this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises made in this Agreement, the Parties agree as follows: Article 1. Background I.I. Incorporation of the Recitals. The foregoing Recitals are incorporated here by this reference. 100006071.DOC / 41 12/18/2007 8:47 PM MAR-ANA SPECTRum DEVELopmENT AGREEMENT -2- 1.2. Proposed Uses. The Development is a retail center planned to accommodate a range of differing but complementary retail-related land uses on an integrated and master-planned basis. Typical uses envisioned in the center include destination and major anchor retailers not otherwise found or clustered in the Town, lifestyle and other retail shops, restaurants, entertaimnent facilities, national electronic and other hard goods retailing, financial institutions and other service businesses, landscaping, and distinctive common areas. The Development may also include mixed use, hotel, office and residential components. Overall, the Development, which will have a unique regional draw, will create substantial additional sales tax revenues for the Town, will assist in the creation or retention of jobs and will otherwise improve or enhance the economic welfare of the residents of the Town by bringing customers to the Development from the Town and surrounding communities. Exhibit B attached to this Agreement is a conceptual description of the master site plan for the Development. This master site plan will be updated in accordance with paragraph 2.3.2 below. 1.3. Definitions. The following definitions shall apply to this Agreement: 1.3. 1. "Anchor Tenant" means a retailer occupying more than 80,000 square feet of building area. 1.3.2. "Anchor Tenant Parcel" means any parcel in the Development owned, leased or operated by an Anchor Tenant. 1.3.3. "Construction Sales Tax Revenues" mean those portions of the Town's transaction privilege taxes (currently 4%) generated pursuant to Section 8-415 or 8-416 of the Marana Tax Code from construction contracting or speculative builder activities occurring on the Property. 1.3.4. "Developer Parcel" means any portion of the Property other than the Anchor Tenant Parcels. 1.3.5. The "Development" is defined in recital B above and described in Exhibit B and in paragraph 1.2 above. 1.3.6. "Development Regulations" is defined in paragraph 2.1 below. 1.3.7. "Initial Development Plan" is defined in paragraph 2.3.1 below. 1.3.8. "Initial Minimum Improvements" is defined in paragraph 2.3.1 below. 1.3.9. "Interchange" means the currently planned freeway bridge and related ramps commonly referred to as the "Twin Peaks Tl," consisting of the approaches and interchange system at approximately milepost 245 of Interstate 10, connecting Interstate 10 to Camino de Mafiana adjacent to the Property. 1.3.10. "Interest" or "Interest Rate" means interest on the applicable obligation or sum (including the Total Reimbursement Amount) at the rate of 6.5% per annum, compounded quarterly on the first day of each calendar quarter. 1.3.11. The "Marana Spectrum Plan" is the Marana Spectrum Specific Plan, approved by the Town on August 7, 2007 pursuant to Ordinance No. 2007.19 (see recital C above). 1.3.12. The "Property" is defined in recital A above and described in Exhibit A attached to this Agreement. 100006071.DOC / 4) 12/18/2007 8:47 PM MAR-ANA SPECTRUM DEVELOPMENT AGREEMENT -3- 1.3.13. "Public Improvements" means the improvements described on Exhibit C attached to this Agreement (see paragraph 3.1 below). 1.3.14. "Public Improvement Costs" means all costs, expenses, fees and charges actually incurred and paid by or on behalf of Owner/Developer to contractors, architects, engineers, surveyors, governmental agencies, other professionals and consultants, and other third parties for materials, labor, planning, design, engineering, surveying, site excavation and preparation, governmental permits and payments, payment and performance bonds, other professional services, and all other costs and expenses related or incidental to and reasonably necessary for, the acquisition, improvement, construction, installation, or provision of the Public Improvements, together with all costs associated with the acquisition of lands, rights- of-way and easements either to be dedicated to the Town or upon which Public Improvements are to be constructed, with Interest as provided in this Agreement. 1.3.15. "Reimbursement Account" means a separate account within the Town's General Fund or accounted for by an appropriate book or ledger entry designation for the purpose of making Reimbursement Payments (see paragraph 6.2 below) 1.3.16. "Reimbursement Payments" is defined in paragraph 6.4 below. 1.3.17. "Sales Tax Revenues" means that portion of the Town's transaction privilege taxes (currently 2%) generated from the following activities occurring on the Property: 1.3.17. 1. Amusements, exhibitions and similar activities pursuant to Section 8-410 of the Marana Tax Code. 1.3.17.2. Hotels pursuant to Section 8-444 of the Marana Tax Code. 1.3.17.3. Rentals pursuant to Section 8-445 of the Marana Tax Code. 1.3.17.4. Restaurants and bars pursuant to Section 8-455 of the Marana Tax Code. 1.3.17.5. Retail sales pursuant to Section 8-460 of the Marana Tax Code. References to sections of the existing Marana Tax Code shall include corresponding sections of successor codes. 1.3.18. The "Total Reimbursement Amount" is defined in paragraph 6. 1.1 below. Article 2. Development of the Property. 2. 1. Development Regulations. The development of the Property shall be governed by the underlying zoning or land use designation and the standards provided for in the Marana Spectrum Plan, including the Owner/Developer's design and development standards and guidelines, as clarified and supplemented by this Agreement. The Marana Development Code, J, including the written rules, regulations, substantive procedures, and policies relating to development of land, adopted or approved by the Mayor and Council (collectively the "Marana 1 Development Code") in effect on the effective date of the Marana Spectrum Plan shall apply to the extent not covered by the Marana Spectrum Plan or this Agreement. In the event of any express conflict, the terms of this Agreement and the Marana Spectrum Plan shall control over C, the Marana Development Code. For purposes of this Agreement, the underlying zoning or land ??2`j use designation shall mean full development, exclusive of voluntary limitations or restrictions, under the controlling underlying zoning or land use designation included in the Marana Spectrum Plan, and if not so covered, under the Marana Development Code. All signage and (00006071.DOC / 4) 12/18/20078:47PM MAR-ANA SPECTRUM DEVELOPMENT AGREEMENT -4- lighting standards shall be governed exclusively by the Marana Spectrum Plan for a period of five years from the Effective Date of this Agreement. Anything else in this Agreement to the contrary notwithstanding, the Town shall not apply any ordinances enacted after the Effective Date of this Agreement which impose special limitations or restrictions on the development of single user retail facilities in excess of a certain size limitation (such as 100,000 square feet or more of retail space) for retail facilities on the Property. The immediately preceding sentence shall terminate on the tenth anniversary of the Effective Date of this Agreement. The requirements of this paragraph are collectively referred to as the "Development Regulations." 2.2. Development Review. The Property shall be developed in a manner consistent with the Development Regulations and this Agreement, which together establish the basic land uses, and the densities, intensities and development regulations that apply to the land uses authorized for the Property. Upon the Owner/Developer's compliance with the applicable development review and approval procedures and substantive requirements of the Development Regulations, the Town agrees to issue such permits or approvals for the Development as may be requested by the Owner/Developer. 2.3. Initial Development Plan. As a condition precedent to the Owner/Developer's right to receive and the Town's obligation to make Reimbursement Payments under Article 6 of this Agreement, and not as a separate obligation, within 36 months of the date the Interchange is completed by the Arizona Department of Transportation and first open for vehicular traffic and use by the general public, the Owner/Developer shall prepare and submit to the Town the following: 2.3. 1. A development plan (the "Initial Development Plan") for the initial construction of the Development, consisting of at least 120,000 square feet of retail building space and related parking, supporting infrastructure and amenities (the "Initial Minimum Improvements"). 2.3.2. An updated revised conceptual master site plan for the entire Development. 2.4. Minimum Construction Obligation. As a condition precedent to the Owner/Developer's right to receive and the Town's obligation to make Reimbursement Payments under Article 6 of this Agreement, and not as a separate contractual obligation, the Owner/Developer shall obtain building permits for and begin construction of the Initial Minimum Improvements in a manner consistent with the Initial Development Plan within twelve months after the later of (i) the Town's approval of the Initial Development Plan or (ii) the Interchange is completed by the Arizona Department of Transportation and first open for vehicular traffic and use by the general public. 2.5. Cooperation. The Parties shall cooperate and share information and plans for the construction of the Interchange and the construction of the Development, to assure coordination between the Interchange construction and the development of the Development. This "I coordination and information sharing shall include, without limitation, the Interchange height, 149 scope, ramps and curb cuts. i,9 sue 2.6. Abandonment Proceedings. The Town agrees to timely begin and diligently pur 2 abandonment proceedings pursuant to A.R.S. § 28-7201 et seq. to abandon the existing Linda 71 Vista Road right-of-way to the extent it is located within the Development to the new alignment shown on the development plans for the Development. Owner/Developer acknowledges the 100006071.DOC / 4) 12/18/2007 8:47 PM MARANA SPECTRum DEVELOPMENT AGREEMENT -5- Town's obligation to proceed as required by law, including the need to address any rights of property owners and utility companies that rely on the right-of-way sought to be abandoned, and the Parties will cooperate in good faith to address those rights justly and appropriately while working toward the goal of full abandonment through the Property. 2.7. Anchor Tenant's Ability to Develop Anchor Tenant Parcel. Any Anchor Tenant may develop its Anchor Tenant Parcel independently of the development of the Developer Parcel and any other Anchor Tenant Parcel. So long as it complies with applicable Town requirements any Anchor Tenant shall be entitled to receive a building permit and certificate of occupancy for the improvements to be constructed on its Anchor Tenant Parcel, whether or not Owner/Developer shall have developed the Developer Parcel in accordance with this Agreement; provided, however, that an Anchor Tenant's right to a certificate of occupancy shall be expressly conditioned upon such Anchor Tenant's submission to and approval by the Town of a development plan consistent with the Development Regulations and completion of. (i) the building to be located on the Anchor Tenant Parcel; (ii) all other necessary improvements to the Anchor Tenant Parcel; (iii) all drives, utilities and entrances serving the improvements on Anchor Tenant Parcel; (iv) applicable amounts of perimeter sidewalks for the Development that serve the Anchor Tenant Parcel; (v) applicable amounts of appurtenant landscaping for entrances and drives located on the Developer Parcel but serving Anchor Tenant Parcel; and (vi) offsite improvements serving the Anchor Tenant Parcel set forth on the approved development plan for the Anchor Tenant Parcel and provided further that the Town's standard bonding obligations shall be enforced with respect to Anchor Tenant's completion of (i) through (vi) above. Further in the event Owner/Developer is not performing under this Agreement with reference to any obligations or improvements referenced in subparts (ii) through (vi) above, Anchor Tenant shall have the right to cure such non-perfannance for a period of six months from the date of the Town's written non-performance notice to Owner/Developer in accordance with paragraph 7.2 below. Article 3. Owner/Developer's Contributions for Public Improvements 3.1. Public Improvements Construction and Reimbursement. As a condition precedent to receiving Reimbursement Payments under Article 6 of this Agreement, and not as a separate contractual obligation, the Owner/Developer shall, in conjunction with its construction of the Development and in accordance with the State of Arizona and the Town public infrastructure construction procurement laws and procedures: 3. 1. 1. Design and construct the Public Improvements described in Exhibit C attached to this Agreement which are identified as being constructed by the Owner/Developer; and 3.1.2. Reimburse the Town, within sixty days of completion and written demand by the Town, all costs of the Public Improvements described in Exhibit C attached to this Agreement which are identified as being constructed by the Town; and 3.1.3. Pay all Public Improvement Costs as they become due. 3.2. Town Review and Approval of Plans. Except as expressly provided in this Agreement, the development and construction of the Public Improvements is subject to the Town's normal plan submittal, review and approval procedures and construction inspection requirements. 3.3. Town Construction. The Town shall timely construct all Public Improvements identified as being constructed by the Town as set forth in Exhibit C to this Agreement. 100006071.DOC / 4) 12/18/20078:47PM MARANA SPECTRum DEVELOPMENT AGREEMENT -6- Article 4. Owner/Developer's Environmental Mitigation Contribution As a condition precedent to receiving Reimbursement Payments under Article 6 of this Agreement, and not as a separate contractual obligation, the Owner/Developer shall make a cash contribution of $456,000 to the Town to be used for acquisition of environmentally sensitive lands for the preservation of species native to the general area of the Development. Article 5. Owner/Developer's Payment of Development Impact Fees 5. 1. Water Impact Fees. The only Town development impact fees adopted by the Town pursuant to A.R.S. § 9-463.05 and currently applicable to the Development are the Gravity Storage and Renewable Water Resource Fee and the Water System Infrastructure Impact Fee, adopted by Marana Ordinance No. 2005.25. 5.2. Other IMpact Fees. Except as specifically provided in the first sentence of paragraph 5.1 above, no surcharge, development fees or impact fees, exactions or impositions of any kind whatsoever for water, sewer, utilities, streets or other transportation systems, parks, preserves, storm sewers, flood control, public safety or other public services or any other infrastructure cost or expense shall be chargeable to the Owner/Developer or to any owner, lessee or occupant of the Development until the ninth anniversary of the Effective Date of this Agreement. Article 6. Town Reimbursement to Owner/Developer 6. 1. Reimbursement Amount. The Town shall make Reimbursement Payments to the Owner/Developer for: 6. 1. 1. The Owner/Developer's Public Improvement Costs and reimbursements to the Town for the Public Improvements (see Article 3 and paragraph 1.3.14 above) (collectively, the "Total Reimbursement Amount"). 6.1.2. From and after the commencement of construction of the Public Improvements, Interest shall accrue on any unreimbursed portion of the Total Reimbursement Amount at the Interest Rate. This accrued interest on the Total Reimbursement Amount shall be a portion of the Reimbursement Payments in paragraph 6.4 below. The Owner/Developer shall submit to the Town a quarterly statement showing the actual construction costs incurred and contributions paid to date for the Public Improvements. The Owner/Developer shall provide the Town with invoices or other backup information reasonably requested by the Town to confirm the accuracy of the Owner/Developer's quarterly statement of costs and contributions. 6.2. Reimbursement Account. The Town shall deposit into the Reimbursement Account 45% of the Sales Tax Revenues (see paragraph 1.3.17 above) as they are received from the Arizona Department of Revenue, beginning with the first such revenues generated from the Property and ending upon the earlier of the following: 6.2. 1. The expiration of this Agreement. 6.2.2. When the Town has fully reimbursed the Owner/Developer for the costs of the Public Improvements and Interest, even if total reimbursement is less than Thirty Million Dollars ($30,000,000). 6.2.3. When the total cumulative amount deposited in the Reimbursement Account equals Thirty Million Dollars ($30,000,000). (00006071.DOC / 4) 12/18/2007 8:47 PM MARANA SPECTRUM DEVELOPMENT AGREEMENT -7- Funds in the Reimbursement Account shall be reimbursed to the Owner/Developer pursuant to paragraph 6.4 below. 6.3. No Reimbursement Out of Construction Sales Tax Revenues. No portion of any reimbursement under this Article shall consist of Construction Sales Tax Revenues (see paragraph 1.3.3 above). 6.4. Reimbursement PaMents. The Town shall pay to the Owner/Developer within the first 45 days of each calendar quarter all funds in the Reimbursement Account ("Reimbursement Payments"), beginning the first calendar quarter after the later of (i) Town's issuance of the certificate of occupancy for the last building constructed as the Initial Minimum Improvements as shown on the Initial Development Plan (see paragraph 2.3.1 above) or (ii) the Owner/Developer's satisfaction of all conditions precedent to receiving Reimbursement Payments as set forth in this Agreement. Any funds accrued in the Reimbursement Account but not yet disbursed to the Owner/Developer upon the expiration of this Agreement shall be paid to Owner/Developer within thirty days after the expiration of this Agreement. 6.5. Owner/Developer Audit. Not more than once each calendar year, the Owner/Developer may, at its own cost, audit Town sales tax returns and other appropriate financial records of the Town to assure prompt and accurate deposit into the Reimbursement Account of all revenues as required pursuant to this Agreement. 6.6. Annual Rgport. Within 45 days following the end of each Town fiscal year, the Town shall deliver to the Owner/Developer a report of all Sales Tax Revenues generated by or attributable to the Development which have been utilized by the Town in determining the amount deposited into the Reimbursement Account. 6.7. Limitations. During the Tenn of this Agreement, the Town shall not enter into any agreement or transaction which impairs the rights of Owner/Developer under this Agreement, including, without limitation, the right to receive the Reimbursement Payments and the proceeds of the Reimbursement Account in accordance with the procedures established in this Agreement. 6.8. Multiple Business Locations; Release of Tax Information. Since some businesses with multiple locations in the Town report their transaction privilege taxes on the basis of revenues for all their locations in the Town, rather than separately for each location, Owner/Developer shall request each such business to separately report transaction privilege taxes for transactions at its business located in the Development. The Owner/Developer shall exercise reasonable efforts to obtain from all businesses in the Development a consent to release of tax information in a form reasonably acceptable to the Town. If the separate report required by this paragraph is not provided to the Town, the Town shall make a reasonable estimate of the Sales Tax Revenues derived from the Development based on all information available to the Town, including ?1, information provided by the Owner/Developer, and the good faith certification by the Town's Finance Director shall be considered final and binding upon the Owner/Developer. The final certification of the Town's Finance Director shall be subject to all applicable laws that may prohibit or limit the dissemination or use of transaction privilege tax and related information. ??4 ?19 Article 7. Cooperation and Alternative Dispute Resolution. 7. 1. Appointment of Rgpresentatives. To further the commitment of the Parties to cooperate in the progress of the Development, the Town and the Owner/Developer each shall designate and appoint a representative to act as a liaison between the Town and its various departments and the 100006071.DOC / 4) 12/18/20078:47PM MARANA SpEcTRum DEVELOPMENT AGREEMENT -8- Owner/Developer. The initial representative for the Town (the "Town Representative") shall be the Planning Director, and the initial representative for the Owner/Developer shall be Trey Eakin or a replacement to be selected by the Owner/Developer. The representatives shall be available at all reasonable times to discuss and review the performance of the Parties to this Agreement and the development of the Property. 7.2. Non-Performance; Remedies. If either Party does not perform under this Agreement (the "Non-Performing Party") with respect to any of that Party's obligations under this Agreement, the other Party (the "Demanding Party") shall be entitled to give written notice in the manner prescribed in paragraph 8.29 below to the Non-Performing Party, which notice shall state the nature of the non-performance claimed and make demand that such non-performance be corrected. The Non-Performing Party shall then have (i) twenty days from the date of the notice within which to correct the non-performance if it can reasonably be corrected by the payment of money, or (ii) thirty days from the date of the notice to cure the non-performance if action other than the payment of money is reasonably required, or if the non-monetary non-performance cannot reasonably be cured within thirty days, then such longer period as may be reasonably required, provided and so long as the cure is promptly commenced within thirty days and thereafter diligently prosecuted to completion. If any non-performance is not cured within the applicable time period set forth in this paragraph, then the Demanding Party shall be entitled to begin the mediation and arbitration proceedings set forth in this Article. The Parties agree that due to the size, nature and scope of the Development, and due to the fact that it may not be practical or possible to restore the Property to its condition prior to Owner/Developer's development and improvement work, once implementation of this Agreement has begun, money damages and remedies at law will likely be inadequate and that specific performance will likely be appropriate for the non-performance of a covenant contained in this Agreement. This paragraph shall not limit any contract or other rights, remedies, or causes of action that either Party may have at law or in equity. 7.3. Mediation. If there is a dispute under this Agreement which the Parties cannot resolve between themselves, the Parties agree that there shall be a forty-five day moratorium on arbitration during which time the Parties agree to attempt to settle the dispute by nonbinding mediation before commencement of arbitration. The mediation shall be held under the commercial mediation rules of the American Arbitration Association. The matter in dispute shall be submitted to a mediator mutually selected by Owner/Developer and the Town. If the Parties cannot agree upon the selection of a mediator within seven days, then within three days thereafter the Town and the Owner/Developer shall request the presiding judge of the Superior Court in and for the County of Pima, State of Arizona, to appoint an independent mediator. The mediator selected shall have at least five years' experience in mediating or arbitrating disputes relating to real estate development. The cost of any such mediation shall be divided equally between the Town and the Owner/Developer. The results of the mediation shall be nonbinding on the Parties, and any Party shall be free to initiate arbitration after the moratorium. 7.4. Arbitration. After mediation, as provided for in this Article, any dispute, controversy, claim or cause of action arising out of or relating to this Agreement shall be settled by submission of the matter by both Parties to binding arbitration in accordance with the rules of the American Arbitration Association and the Arizona Uniform Arbitration Act, A.R.S. § 12-501 et seq., and judgment upon the award rendered by the arbitrator(s) may be entered in a court having jurisdiction. 100006071.DOC / 41 12/18/20078:47PM MARANA SPECTRUM DEVELOPMENT AGPEEMENT -9- Article 8. General Terms and Conditions. 8.1. Term. This Agreement shall become effective upon its execution by all the Parties and the effective date of the resolution or action of the Town Council approving this Agreement (the "Effective Date"). The term of this Agreement shall begin on the Effective Date and, unless sooner terminated by the mutual consent of the Parties, shall automatically terminate and shall thereafter be void for all purposes (a) when the total amount of all Reimbursement Payments (see paragraph 6.4 above) equals Thirty Million Dollars ($30,000,000) or (b) on December 31 immediately following the earlier of (i) the twentieth anniversary of the Effective Date and (ii) the fifteenth anniversary of the date the Interchange is completed by the Arizona Department of Transportation and first open for vehicular traffic and use by the general public. The Town at its option may record a document in the office of the Pima County Recorder which states the date the Interchange was completed by the Arizona Department of Transportation and first open for vehicular traffic and use by the general public. If the Parties determine that a longer period is necessary for any reason, the term of this Agreement may be extended by written agreement of the Parties. 8.2. Waiver. No delay in exercising any right or remedy shall constitute a waiver of that right or remedy, and no waiver by the Town or the Owner/Developer of the non-performance of any covenant of this Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement. 8.3. Attorngy's Fees. If any Party brings a lawsuit against any other Party to enforce any of the terms, covenants or conditions of this Agreement, or by reason of any non-performance of this Agreement, the prevailing Party shall be paid all reasonable costs and reasonable attorneys' fees by the other Party, in an amount determined by the court and not by the jury. Nothing in the use of the word "lawsuit" in the preceding sentence shall constitute a waiver of paragraph 7.4 above, requiring disputes to be resolved by binding arbitration. 8.4. CountMarts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterparts may be removed from the counterparts and attached to a single instrument so that the signatures of all Parties may be physically attached to a single document. 8.5. Headings. The descriptive headings of this Agreement are intended to be used to assist in interpreting the meaning and construction of the provisions of this Agreement. 8.6. Recitals. The recitals set forth at the beginning of this Agreement are hereby acknowledged, confirmed to be accurate and incorporated here by reference. 8.7. Exhibits. Any exhibit attached to this Agreement shall be deemed to have been IS ,i incorporated in this Agreement by reference with the same force and effect as if fully set forth in 2 the body of this Agreement. 8.8. Further Acts. Each of the Parties shall execute and deliver all documents and perform all acts as reasonably necessary, from time to time, to carry out the matter contemplated by this Agreement. Without limiting the generality of the foregoing, the Town shall cooperate in good faith and process promptly any requests and applications for plat or permit approvals or revisions, and other necessary approvals relating to the Development. 100006071.DOC / 41 12/18/20078:47PM MAR-ANA SPECTRUM DEVELOPMENT AGREEMENT _10- 8.9. Time Essence. Time is of the essence of each and every obligation by the Town and Owner/Developer under this Agreement. 8.10. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Parties pursuant to A.R.S. § 9-500.05 (D). Owner/Developer shall retain the right to receive Reimbursement Payments as provided by paragraph 6.4 of this Agreement regardless of the status of title or ownership of any or all of the Property unless Owner/Developer expressly assigns its rights to receive the Reimbursement Payments. No assignment, however, shall relieve either party of its obligations under this Agreement, except that an assignment by Owner/Developer in connection with the transfer of title to the Property shall relieve Owner/Developer of its obligations under this Agreement if the transferee agrees to be fully bound by the provisions of this Agreement. Any assignment by Owner/Developer shall be subject to the approval of the Town, which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, Owner/Developer may, without the Town's consent, assign this Agreement to any Affiliate of Owner/Developer, or any entity in which Owner/Developer or an Affiliate of Owner/Developer is a managing member or managing partner or any entity in which BARCLAY GROUP and Kimco DEVELOPERS, INC. are owners. As used in this paragraph, the term "Affiliate" means any entity under common control with Owner/Developer. After assignment of rights as provided in this paragraph, the assignee shall receive the right to sales tax reimbursements under Article 6 of this Agreement to the extent of the assignment. 8.11. No Title Encumbrance. Notwithstanding the fact that this Agreement is being recorded in the Official Records of Pima County, it is intended that this Agreement shall not be an encumbrance upon the title of any person or entity purchasing or owning a portion of the Property, and that the terms and conditions of the Agreement are not covenants running with the land and that no person or entity is bound by (or entitled to) the burdens and benefits of this Agreement unless the burdens are expressly assumed by or the benefits are expressly assigned to that person or entity. 8.12. Lender Provisions. Notwithstanding paragraph 8. 10 above, the Town is aware that financing for development, construction, and operation of the Development may be provided, in whole or in part, from time to time, by one or more third parties (collectively, "Lender"), and that Lender may request a collateral assignment of this Agreement as part of its collateral for its loan to Owner/Developer. The Town agrees that such collateral assignments are permissible without the consent of the Town. In the event of non-performance by Owner/Developer, the Town shall provide notice of non-performance to any Lender previously identified in writing to the Town at the same time notice is provided to Owner/Developer. If a Lender is permitted under the terms of its agreement with Owner/Developer to cure the non-performance and/or to assume Owner/Developer's position with respect to this Agreement, the Town agrees to recognize the rights of Lender and to otherwise permit Lender to assume such rights and obligations of Owner/Developer under this Agreement. Nothing contained in this Agreement shall be deemed to prohibit, restrict, or limit in any way the right of a Lender to take title to all or any portion of the Property, pursuant to a foreclosure proceeding, trustee's sale, or deed in lieu of foreclosure. The Town shall, at any time upon request by Owner/Developer or Lender, provide to any Lender an estoppel certificate, acknowledgement of collateral assignment, or other document evidencing that this Agreement is in full force and effect, that it has not been amended or modified (or, if appropriate, specifying the amendment or modification), and that no non-performance by (00006071.DOC / 4) 12/18/20078:47PM MAR-ANA SPECTRUM DEVELOPMENT AGREEMENT - 11 - Owner/Developer exists under this Agreement (or, if appropriate, specifying the nature and duration of any existing non-performance) and certifying to such other matters reasonably requested by Owner/Developer or Lender. Upon request by a Lender, the Town will enter into a separate assumption or similar agreement with the Lender consistent with the provisions of this paragraph. 8.13. No PartnershiR. It is not intended by this Agreement to, and nothing contained in this Agreement shall, create any partnership, joint venture or other arrangement between the Owner/Developer and the Town. 8.14. Third Party Beneficiaries. No term or provision of this Agreement is intended to, or shall be for the benefit of any person, firm, organization or corporation not a party to this Agreement, and no such other person, firm, organization or corporation shall have any right or cause of action under this Agreement, except that each present and future Anchor Tenant is hereby made a limited third party beneficiary with respect to paragraphs 2.7 and 8.11 of this Agreement. Any Anchor Tenant is not made a third party beneficiary of any other term, provision or covenant contained in this Agreement. No Anchor Tenant shall have the right to enforce any provision of this Agreement except paragraphs 2.7 and 8.11. Except as provided in paragraphs 2.7 and 8.11 of this Agreement, this Agreement is made and entered into for the sole protection and benefit of the Parties and their permitted assigns, and no person other than the Parties and their permitted assigns shall have any right of action based upon any provision of this Agreement. 8.15. Other Instruments. Each Party shall, promptly upon the request of the other, have acknowledged and delivered to the other any and all further instruments and assurances reasonably request or appropriate to evidence or give effect to the provisions of this Agreement. 8.16. IMposition of Duty by Law. This Agreement does not relieve any Party of any obligation or responsibility imposed upon it by law. 8.17. Entire Aareement. This Agreement, including the attached exhibits, constitutes the entire agreement between the Parties pertaining to the subject matter of this Agreement. All prior and contemporaneous agreements, representation and understanding of the Parties, oral or written, are hereby superseded and merged in this Agreement. 8.18. Amendments. No change or addition shall be made to this Agreement except by a written amendment executed by the Parties. The Parties agree to cooperate and in good faith pursue any amendments to this Agreement that are reasonably necessary to accomplish the goals expressed in the final plats or development plans governing the Property and Marana Spectrum Plan as amended and superseded by this Agreement. Within ten days after any amendment to this Agreement, it shall be recorded in the office of the Pima County Recorder by and at the expense of the Party requesting the amendment. 8.19. Names and Plans. Subject to customary reservations by the architects and other design professionals of copyrights to plans and specifications, the Owner/Developer shall be the sole owner of all names, titles, plans, drawings, specifications, ideas, programs, ideas, designs, and work products of every nature at any time developed, formulated or prepared by or at the instance of the Owner/Developer in connection with the Property or any plans; provided, however, that in connection with any conveyance of portions of the infrastructure as provided in (00006071.DOC / 41 12/18/20078:47PM MARANA SPECTRUM DEVELOPMENT AGREEMENT -12- this Agreement such rights pertaining to the portions of the infrastructure so conveyed shall be assigned to the extent that such rights are assignable, to the appropriate governmental authority. 8.20. Good Standing-, Authorily. The Owner/Developer represents and warrants to the Town that it is duly formed and validly existing under the laws of the state of Delaware and is authorized to do business in the state of Arizona. The Town represents and warrants to the Owner/Developer that it is an Arizona municipal corporation with authority to enter into this Agreement under applicable state laws. Each Party represents and warrants that the individual executing this Agreement on its behalf is authorized and empowered to bind the Party on whose behalf each such individual is signing. 8.21. Severability. If any provision of this Agreement is declared illegal, invalid or unenforceable, in whole or in part, under present or future laws, it shall be severed from the remainder of this Agreement, which shall otherwise remain in full force and effect. In lieu of the illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in terms to the illegal, invalid, or unenforceable provisions as may be possible and still be legal, valid, and enforceable, and this Agreement shall be deemed refonned accordingly. Without limiting the generality of the foregoing, if all or any portion of the payments required by the terms of this Agreement are determined, by a court of competent jurisdiction in a final non-appealable judgment, to be contrary to public policy or otherwise precluded, the parties shall utilize their reasonable, best efforts to promptly restructure and/or amend this Agreement, or to enter into a new agreement to afford the Owner/Developer the economic benefits of this Agreement in light of the benefits to the Town. 8.22. Governing Law. This Agreement is entered into in Arizona and shall be construed and interpreted under the laws of Arizona, and the Parties agree that any litigation or arbitration shall take place in Pima County, Arizona. Nothing in the use of the word "litigation" in the preceding sentence shall constitute a waiver of paragraph 7.4 above, requiring disputes to be resolved by binding arbitration. 8.23. Interpretation. This Agreement has been negotiated by the Town and the Owner/Developer, and no Party shall be deemed to have drafted this Agreement for purposes of construing any portion of this Agreement for or against any Party. 8.24. Recordation. The Town shall record this Agreement in its entirety in the office of the Pima County Recorder no later than ten days after it has been executed by the Town and the Owner/Developer. 8.25. No Owner/Developer Rgpresentations. Nothing contained in this Agreement shall be deemed to obligate the Town or the Owner/Developer to commence or complete any part or all of the development of the Property. 3 8.26. Approval. If any Party is required pursuant to this Agreement to give its prior written approval, consent or permission, such approval, consent or permission shall not be unreasonably withheld or delayed. 8.27. Force Majeure. If any Party shall be unable to observe or perform any covenant or condition of this Agreement by reason of "force majeure," then the failure to observe or perform such covenant or condition shall not constitute an event of non-performance under this Agreement so long as such Party shall use its commercially reasonable efforts to remedy with all reasonable dispatch the event or condition causing such inability and such event or condition can J00006071DOC / 41 12/18/2007 8:47 PM MARANA SPEcTRum DEVELOPMENT AGREEMENT -13- be cured within a reasonable amount of time. "Force majeure" as used in this paragraph means any condition or event not reasonably within the control of such Party, including without limitation, "acts of God," strikes, lock-outs, or other disturbances of employer/employee relations; acts of public enemies; orders or restraints of any kind of government of the United States or any state or subdivision thereof or any of their departments, agencies, or officials, or of any civil or military authority; insurrection; civil disturbances; riots; epidemics; landslides; lightning; earthquakes; subsidence; fires; hurricanes; storms; droughts; floods; arrests, restraints of government and of people; explosions; and partial or entire failure of utilities. Failure to settle strikes, lock-outs and other disturbances of employer/employee relations or to settle legal or administrative proceedings by acceding to the demands of the opposing party or parties, in either case when such course is, in the judgment of such Party, unfavorable to a Party shall not constitute failure to use its best efforts to remedy such a condition. 8.28. Conflict of Interest. This Agreement is subject to A.R.S. § 38-511, which provides for cancellation of contracts in certain instances involving conflicts of interest. 8.29. Notices and Filings. All notices, filings, consents, approvals and other communications provided for in or given in connection with this Agreement shall be validly given, filed, made, transmitted or served if in writing and delivered personally, sent via overnight national courier, or sent by registered or certified United States mail, postage prepaid, if to (or to such other addresses as any Party may from time to time designate in writing and deliver in a like manner): To the Town: Town Manager Town of Marana Marana Municipal Complex 115 5 5 West Civic Center Drive, A3 Marana, Arizona 85653 To Owner/Developer: Kimco BARCLAY MARANA, L.P. c/o BARCLAY GROUP VENTURE CAPITAL, L.L.C. 7702 E. Doubletree Ranch Road, Suite 220 Scottsdale, Arizona 85258 with a copy to: Kimco DEVELOPERS INC. Att'n: Dan Slattery, Executive Vice President 1111 Burlington Avenue, Suite 113 Lisle, IL 60532 and: Kimco REALTY CORPORATION Att'n: Ruth Mitteldorf 3333 New Hyde Park Road New Hyde Park, New York 11042-0020 [Remainder of page intentionally left blank.] 100006071.DOC / 41 12/18/20078:47PM MARANA SPECTRum DEVELOPMENT AGREEMENT -14- IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth below their respective signatures. TOWN: THE TOWN OF MARANA, an Arizona municipal corporation By: Ed Honea, Mayor Date: ""; - / ?- -? (' -7 ATTEST: y C. n C.yronson, Clerk APPROVED AS To FoRm: County of Pima ss OWNER/DEVELOPER: Kimco BARCLAY MARANA, L.P., a Delaware limited partnership By: KD MARANA 1553, INC., a Delaware corporation, its general partner By: Name: Title: Date: The foregoing instrument was acknowledged before me on by 5 the of KD MARANA 1553, INC., a Delaware corporation, general partner of Kimco BARCLAY MARANA, L.P., a Delaware limited partnership. My commission expires: Notary Public 100006071.DOC / 41 12/18/20078:47PM MARANA SPECTRum DEVELOPMENT AGREEMENT -15- I IN WiTNESS wHEREOF, the Parties have executed this Agreement as of the last date set forth below their respective signatures. TowN: THE TowN OF MARANA, an Arizona municipal corporation By: Ed Honea, Mayor Date: ATTEST: Jocelyn C. Bronson, Clerk APPROVED AS To FoRm: Frank Cassidy, Town Attorney Illinois STATE OF AXMMNA) OWNER/DEVELOPER: Kimco BARCLAY MARANA, L.P., a Delaware limited partnership By: KD MARANA 1553, INC., a Delaware corporation, its general o By- gl "; , ;. a-A'C. Slatt'jry Name: Title: Executive Vice President Date: December 22, 2007 DuPage ss County of PTnik December 22) 2007 The foregoing ipstrument was acknowledged before me oxy Daniel C. Slattery the Executive -Vice Preside*KD MARANA 1553, INC., a Delaware corporation, general partner of Kimco BARCLAY MARANA, L.P., a Delaware limited partnership. My commission expires: /0) Y P WANDA A. UNDERWOOD OFFICIAL MY COMMISSION EXPIR]ES SEPTEMBER 11, 2010 OF 11'- Notary Public 100006071.DOC / 4) 12/18/20078.-47PM MARANA SpEcTRum DEvELOPMENT AGREEMENT -15- LIST OF EXHIBITS A. Legal description of the Property B. Conceptual description of the master site plan for the Development C. Description of the Public Improvements f00006071.D0C / 4) 12/18/20078:47PM MARANA SPECTRum DEVELOPMENT AGFEEMENT EXHIBIT A -16- EXHMIT A Legal description of the Property 100006071.DOC / 4) 12/18/20078:47PM MARANA SPECTRUM DEVELOPMENT AGREEMENT EXHIBIT A EXHIBIT A Legal Descdption A parcel of land located within a portion of the Northwest quarter of Section 22, Township 12 South, Range 12 East, of the Gila and Salt River Base and Meridian, Pima County, Arizona, more particularly described as follows: Commencing at the North quarter comer of Section 22; Thence S 0002606" E 51.89 feet along the East line of the northwest quarter of said Section 22, to a point Thence leaving said East line, S 89034!54" W 30.00 feet, to a point on the West right-of- way line of Camino De Mariana, as recorded in Road Maps Book 2, Pages 1-4, Pima County Records, said point also marking the Polint of Beginning; Thence S 00"25'06'E 1,224.75 feet along said West right-of-way line, to a point on the northerly boundary fine of Unisource Energy Corporation, as recorded in Docket 2363, Page 94, Pima County Records; Thence N 34"51'57"W 871.54 feet along said northerly boundary line, to ft begirming of a 7829.44 foot radius non-tangent curve to the left, having a radial bearing of N 35*27"41* W; Thence leaving said northerly boundary line, and along said curve, 58.18 feet, through a central angle of 00*2537, to a point Thence N 4201610" E 593.87 feet to the beginning of a 7729.44 foot radius non-tangent curve to the left, having a radial bearing of N 40* 11'58" W; Thence along said curve, 55.91 feet, through a central angle of 00?24!52% to the Point of Beginning. Together with a parcel of land located within a portion of the Northeast quarter of Section 22, and a portion within the Southeast quarter of Section 15, Township 12 South, Range 12 East, of the Gila and Salt River Base and Meridian, Pima County, Arizona, more particularly described as follows. Commencing at the North quarter comer of Section 22-, Thence N 89*46 19' E 31.09 feet, along the North line of the northeast quarter of said Section 22, to a point on the East right-of-way line of Camino De Mariana, as recorded in Road Maps Book 2, Pages 1-4, Pima County Records, and the beginning of a 379.26 foot radius non-tangent curve the right, having a radial bearing of S86*M08"E, said point also marking the Point of Beginning; Thence leaving said North line, along said curve and said East right-of-way line, 30.19 feet through a central angle of 04*3344", to a point, Thence leaving said East right-of-way line, N 8904616" E 30.54 feet, to the beginning of a 7729.44 foot radius non-tangent curve to the left, having a radial bearing of N 4103Z37"W; Thence along the curve, 128.00 feet, through a central angle of 00059560, to the beginning of a 7549.44 foot radius reverse curve the right; Thence along said reverse curve, 528.73 feet through a central angle of 04'W48", to a point; Thence N 51'31'lS'E 610.78 feet to the beginning of a 40.00 foot radius curve to the right Thence along said curve, 62,95 feet, through a central angle of 9001 YOT, to a point; Thence S 38018'4T'E 412.88 feet, to the beginning of a 1507.39 foot radius curve to the left; Thence along said curve, 1366.29 feet through a central angle of 51 *5657". to a point, Thence N 89045'16!'E 87.91 feet, to a point of the East line of the northeast quarter of said Sectiort 22; Thence S 00*1 W58!' E Z558.47 feet, along said East line, to the East quarter comer of said Section 22; Thence S89*4649"W 1,621.14 feet along the South line of the northeast quarter, of said Section 22, to a point on the northerly boundary line of Unisource Energy Corporation, as recorded in Docket 2363, Page 94, Pima County Records, and the beginning of a 11272.37 foot radius non-tangent curve to the right having a radial bearing of N 48*03'25" E; Thence leaving said South line and along said curve and said northerly boundary line, 1603.23 feet, through a central angle of W08'56", to a point on said East right-d-way line of Carrdno De Mariana; Thence leaving said northerly boundary line, N 00*25'06'W 1,334.45 feet, along said East right-of-way line, to the beginning of a 379.26 foot radius non-tangent curve to the right having a radial bearing of N 89923!42" E; Thence along said curve and continuing along said East right-of-way line, 30.02 feet through a central angle of 0403ZIC", to the Point of Beginning. The total area of the two parcels contains: :t 7,315,255 more or less. See attached exhibit "A". feet or ±i 67.9352 acres, DETAIL W Wi to ZBL4 BL4 00 MENT z: POINT OF BEGINNING POINT OF BEGINNING POINT OF COMMENCE NORTH 1/4 COR. SEC. 22 1 PARCEL 12 N89*45'16"E 2629.14' SOO*25'06"E 51.89' m POINT OF BEGINNING PARCEL #1 - - ' T U5 PARCEL- # C) C) ±7,014,993 S.F. I 3: LD -j ±161.0421 ACRES I m = d- !o I c? -u-) SN I 1 C) c) W CAMINO 00 DE MANANA PAF-CEL ±300,262 S.F. ±6.8931 ACRES L ----------- - -- ----------- BOUNDARY LINE TABLE LINE BEARING DISTANCE BL1 SOO-25'06"E 1224.75' BL-2 N34*51'57*W 871.54' BI-3 N42-16'10"E 593.87' BL4 N89-45'16"E 30.54' 131-5. N51'31'13*E 610.78' BI-6 S38-18'47"E 412.88' BI-7 N89-45'1 6wE 87.91' 131-8 SOO*19'58"E 2558.47' 131-9 S89'45'49"W 1621.14' BL10 NOO*25'06"W 1334.45' 0 Z, OVERALL SITE ±7,315,255 S.F. ±167.9352 ACRES BOUND ARY CURV E TABLE CURVE LENGTH RADIUS DELTA RAD.BRG. BCI 58.16 7829.44' 0'25',33" NW27'41 OW BC2 55.91' 7729.44' 0'24'52" N40'1 1158nW BC3 30.19' 379.26' 1 4*33'44" S86*04'08"E BC4 128.00' 7729.44' 0-56'56" N41-32'37OW BC5 528.73' 7549-44' 4*00'46" BC6 62,95' 40.00' 9010'CO' BC7 1366.29' 1507.39' 51'55*57" BC8 1603.23' 11272.37' 18*08'56" N48'03'25"E ' l 30.02' 379.26' 14-32'100 89'2S42"E IN PRO.ECT NO. W52BGP EXHIBIT'K DATE OW14/2007 MARANA SPECTRUM BY: SK2 TdL $saw== FM 01007JM PIMA COUNTY. ARIZONA SCALE: T m 1w mw? . ?mwwm - ? SHEET NO. 1 OF 2 6 SITE AREA PARCEL AREA PAKEL # ±300,262 S.F. ±7,014.993 S * F. 36326 STOCXMA)N )AC;I) ±6.B931 ACRES ±161.0421 ACRES ((m_r(R'lCHARD SW 1/4. SEC. 15, Tl 2S, Rl 2E CAMINO DE MANIANA POINT OF COMMENCEMENT NORTH 1/4 COR. SEC. 22, T12S, R12E P.O.B. PARCEL #1 SEE DETAIL "A" r PARCEL#l \\\7v- 9cl 0 z r 0 m ;j SE 1/4. SEC. 15, T12S, R12E BC6 --i CAMINO DE MANANA "t 67 CAMINO DE MANANA N-S MID-SECTION LINE NOO'25'06"W 2633.06' CENTER OF SEC. 22, T12S, R12E clz C*4 co _j m ul r 00 BL9 S89-45'49"W 2625. CN Of C3 0 c*4 U;7- 'cr ?'C'4 cq d w ui U) OVERALL WE ±7,315,255 S.F. ±167.9352 ACRES PROJECT NO. 6862BGP EXHIBIT "K DAM OM412W MARANA SPECTRUM BY: BIQ PIMA COUNTY, ARIZONA SCALE- T = 6w SHEET NO. 2 OF 2 PARCEL #2 C14 N89'45'16"E N_ P.O.B. PARCEL 12 SEE DETAIL "A" SEE DETAIL *A" BL7 EXHIBIT B Conceptual description of the master site plan for the Development (00006071.DOC / 4) 12/18/2007 8:47 PM MARANA SPECTRUM DEVELOPMENT AGPEEMENT EXHIBIT B EXHIBIT C Description of the Public Improvements 100006071.DOC / 41 12/18/20078:47PM MARANA SPECTRUM DEVELOPMENT AGREEMENT EXHIBIT C Exhibit C Scope of Work Marana Spectrum Drainage 1300 cfs Drainage Channel Excavation Gabion/Shot Crete Lining Landscaping Transition at Railway Drop Structures/Grade Control 800 cfs Drainage Channel Excavation Concrete Structural Lining 1,100 cfs Wash Enclosure 1100 cfs Wash enclosure (con-arch or CSP equivalent to twin 5x7 box) 1100 cfs open channel d/s of Twin Peaks Utility Relocations d/s of Twin Peaks 1,100 cfs Wash Culvert 1100 cfs culvert Ca) Twin Peaks Road Building Constructed by Developer Bus Pullout Traffic Signals at Lee Driveway Traffic Signals at Twin Peaks mid-block Deceleration Lanes Constructed by Town of Marana Median Break at Lee Reconstruct Camino De Manana Median Break at unsignalized full moves access to Barclay Bridge Q-1-10/Twin Peaks Road TI Underpass Linda Vista-2 Extra Lanes and Double Left Hand Turn at Twin Peaks Twin Peaks New Lanes Exhibit C - I 00007481.1 Exhibit C continued Water Supply/Fire Protection Fire Storage Tank(840,000 gallon) Land for Storaue Tank New 12" parallel well feed from site to existing Town storage Tank New 16" Z-Zone Water Main New Well Feed on Camino De Marana and Linda Vista (24" ductile Iron) New Hydrants on Linda Vista and Twin Peaks PRV at Z-Zone Booster Station - Hartman Vista Reservoir Site Public Sewer Improvements Reconstruct public 10" to 12" Oasis Hills Outfall New public 8" sub-trunk to SE property comer per Pima County New public 15" sewer to south west property limits New steel sleeve at Twin Peaks Crossing New 15" public sewer crossing Twin Peaks to existing manhole Offsite Regional Trunk Sewer Improvements Exhibit C - 2 00007481.1 Exhibit C Page 3 Summary Community Improvements Marana Spectrum 12/21/2007 Good Faith Cost Estimate Item Total Developer Total Town Total Item Cost Drainage $6,580,000 $1,030,000 $7,610,000 Road Building $940,000 $4,080,000 $5,020,000 Water Supply/Fire Protection $2,960,000 $2,960,000 Sewer Improvements $1,050,000 $1,050,000 1 ITotal $11,530,000 1 $5,110,000 1 $16,640,0001 consulting 15% Contingency 100/0