Perris City Council
September 29, 2026

competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words of this Resolution shall remain in full force and effect.

Section 9. This Resolution shall take effect upon effectiveness of Ordinance No. (Next in Order), conditionally approving Planned Development Overlay (PDO) 22-05152.

Section 10. The Mayor shall sign this Resolution, and the City Clerk shall certify the adoption of this Resolution.

ADOPTED, SIGNED, and APPROVED on this 29th day of September 2026. ___
Mayor, Michael M. Vargas
ATTEST:

City Clerk, Nancy Salazar
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §

CITY OF PERRIS )
I, Nancy Salazar, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution Number No. (Next in Order) was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held on the 29th day of September, by the following called a vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
City Clerk, Nancy Salazar
Attachments: 1. Mitigated Negative Declaration No. 2398 and Mitigation Monitoring and Reporting Program
Due to the size of the files, the documents are available online at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-public-review/- folder-462#docan1206_1313_479

2. Conditions of Approval (Planning, Fire, Engineering, Public Works, Community Services, and Building & Safety).
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ATTACHMENT 1
Mitigated Negative Declaration No. 2398 and
Mitigation Monitoring and Reporting Program
Due to the size of the files, the documents are
available online at:
https://www.cityofperris.org/departments/develop
ment-services/planning/environmental-documentsfor-public-review/-folder462#docan1206_1313_479 933

ATTACHMENT 2
Conditions of Approval
(Planning, Fire, Engineering, Public Works,
Community Services, and Building & Safety).
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CITY OF PERRIS

DEVELOPMENT SERVICES DEPARTMENT

PLANNING DIVISION

RECOMMENDED CONDITIONS OF APPROVAL
Planned Development Overlay (PDO) 22-05152,
Tentative Tract Map 22-05153 (TPM-37907); and
Development Plan Review (DPR) 22-00014 September 29, 2026 PROJECT: Planned Development (PD) Overlay Zone 22-05152, Tentative Tract Map 22-05153 (TTM 37907), Development Plan Review 22-00014 (Continued from the July 15, 2026 meeting) – A proposal to consider the following entitlements to facilitate a gated residential development on 12.8 acres, located north of Metz Road between McKimball Road and “A” Street:
1) Planned Development Overlay Zone to allow flexibility from the R-6,000 Single Family Residential development standards;
2) Tentative Tract Map to subdivide 12.8 acres into 91 residential lots; and 3) Development Plan Review for review of the site plan and building elevations. • GENERAL CONDITIONS:

1. Mitigation Monitoring Program. The project shall fully comply with all provisions of the adopted Mitigation Monitoring and Reporting Program (MMRP) for the Initial Study/Mitigated Negative Declaration No. 2398, which shall be implemented in accordance with the listed timeline, reporting, and monitoring intervals.

2. Tentative Tract Map (TTM) 22-05153 (TTM 37907). There is a 24-month time limit for satisfying the conditions and recording the map after the City Council approval. A maximum of six (6) subsequent one-year time extensions may be granted by the City Council upon request by the applicant. A written request for an extension of time shall be submitted to the Planning Division at least 30 days before the expiration of the map.

3. Approval Period for Planned Development Overlay (DP) Overlay Zone 22-05152 and Development Plan Review 22-00014. Planned Development Overlay and Development Plan Review related to an implementing subdivision may be granted time extensions by the City Council up to a total of six (6) years beyond the original approval expiration date before the issuance of any building permits. Once a building permit has been issued, the Planned Residential Development will be considered vested, and time extensions will no longer be required. A written request for an extension of time shall be submitted to the Planning Division at least 30 days before the expiration date.

4. Indemnification. The developer/applicant shall indemnify, protect, defend, and hold harmless the City and any agency or instrumentality thereof and/or any of its officers, employees, and agents from any and all claims, actions, or proceedings against the City or any agency or instrumentality thereof, or any of its officers, employees, and agents, to attack, set aside, void, annul, or seek monetary damages resulting from approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board or legislative 935

Conditions of Approval September 29, 2026
body including actions approved by the voters of the City concerning Planned Development Overlay (PDO) 22-05152 Zone, Tentative Tract Map (TTM) 22-05153 (TTM 37907), and Development Plan Review 22-00014. The City shall promptly notify the applicant of any claim, action, or proceeding for which indemnification is sought and shall cooperate fully in the defense of the action.

5. Notice of Determination. Within five (5) days of City Council approval, the applicant shall work with Planning Staff on filing a Notice of Determination and applicable fee for the project Mitigated Negative Declaration to the Riverside County Clerk Recorder, in accordance with Section 753.5, (Title 14) of the California Code of Regulations; no project shall be operative, vested, or final until the filing fees have been paid. • PLANNING DIVISION

6. Perris Municipal Code. The project shall conform to the development standards of the R6,000 Zone in Chapter 19.25, the Planned Development Overlay Zone requirements in Chapter 19.59, and Parking and Loading in Chapter 16.69 of the Perris Municipal Code, as approved for this project.

7. Expansion of Use. The site or its use may not be expanded without subsequent reviews and approvals by the Planning Division.

8. Conformance to Approved Plans. Development of the project site, building elevations, colors and materials, and conceptual landscaping shall conform substantially to the plans approved by the Planning Commission on September 2, 2026, or as amended by final approval by the City Council. Any deviation shall require appropriate Planning Division consideration.

9. Advisory: Signs shall be permitted in accordance with Chapter 19.75 Sign Regulations of the Zoning Code. Signs shall be subject to separate review and assessment. A separate application and fee will be required.

Prior to Map Recordation:

10. Mitigation Measures. All applicable mitigation measures shall be satisfied.

11. Street Names Request. The applicant shall submit a Street Names Request to the Planning Division for Planning Commission review and approval. A separate application and applicable fee shall apply.

12. Final Map Recordation. Prior to the recording of the Final Tract Map, the developer shall submit two separate applications and fees, one application to the Planning Division and a second application to the Engineering Department for review and approval for City Council action.

13. Assessment and Community Facilities Districts. The project shall be annexed into any assessment, community facilities, or similar district that provides funding for maintenance, services, or public improvements that benefit the project, or provision shall be made satisfactory to the City for providing these services in the applicable district. The costs and 936

Conditions of Approval September 29, 2026
benefits shall be described in the applicable district and annexation documents. The developer shall complete all applicable annexations prior to issuance of any grading permit, issuance of any building permit, or recordation of a Final Map, whichever occurs first. In addition to districts that exist as of the date of project approval, this condition shall include later-formed districts provided that such districts are in existence as of the time of issuance of any grading permit or building permit for the project, as applicable. Such districts may include but are not limited to the following:
a. Landscape Maintenance District No. 1;
b. Flood Control Maintenance District No. 1;
c. Maintenance District No. 84-1;
d. Perris Community Facilities Assessment District; and e. Any other applicable City Assessment and Community Facilities Districts

14. Homeowners Association. The applicant shall prepare and record Covenants, Conditions, and Restrictions (CC&Rs) creating a Homeowners Association (HOA), subject to approval of the Planning Division and City Attorney’s Office. The CC&Rs/HOA shall contain the following:
a. Each buyer shall sign and acknowledge that he/she has read the Constitution and ByLaws of the HOA and the CC&Rs applying to the development, including any clause pertaining to private streets and private driveways.
b. The CC&Rs shall be irrevocably written and recorded so that the maintenance is the responsibility of the HOA for the life of the project. The CC&Rs shall clearly state that the HOA officers are responsible for the enforcement of the on-street parking regulations.
c. Before the recording of the Articles of Incorporation, City Attorneys require an additional deposit to review the AOIs.
d. The By-Laws or other appropriate document of the HOA shall include the obligations of the Association concerning the maintenance of landscaping along the street frontages; primary and secondary entrances, perimeter walls and landscaping; common open space areas, including maintenance of open space parcels, maintenance of recreation areas and equipment, the clubhouse building, swimming pool, and spa; perimeter wall and entry gates, parking areas, and private streets. e. The HOA shall also act as the Architectural Review Board for the project, strictly enforcing compliance with approved home design, materials colors, proposed additions, patio covers, etc., prior to submitting the proposed changes to Planning and Building and Safety Divisions for review and approval.
f. Vehicles parked on a residential driveway shall not encroach into the sidewalk or private street.
g. Graffiti on all exterior walls or common space buildings shall be removed within 48 hours of complaint.
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Conditions of Approval September 29, 2026
h. Provide the appropriate number of dog waste stations throughout the development site and maintain them regularly.

Prior to Grading Permit Issuance:

15. Mitigation Measures. All applicable mitigation measures shall be satisfied.

16. Precise Grading Plans. Precise grading plans shall be submitted to the City Engineer for review and approval. Grading plans shall be consistent with approved development plans.

17. Phasing. The final project phasing plan shall be approved by the Planning Division, Engineering Department, and Fire.

18. Traffic Control Plan. A Traffic Control Plan shall be submitted for approval to the City Engineer.

19. Southern California Edison (SCE). The developer/owner shall contact the Southern California Edison (SCE) area service planner (951-928-8323) to complete the required forms before the commencement of construction. No grading permits shall be issued until a letter from SCE is received by the City Engineer indicating that the electrical service will be placed underground.

20. Eastern Municipal Water District (EMWD). After the City's approval, the applicant shall also submit landscape plans to EMWD for approval and comply with required EMWD inspections. Contact EMWD at 951 928-3777, ext. 4334.

21. Payment of Outstanding Project Balances. The applicant or developer shall pay any outstanding project balances.

Prior to Building Permit Issuance:

22. Recorded Map. Tentative Tract Map 37904 shall be recorded.

23. Mitigation Measures. All applicable mitigation measures shall be satisfied.

24. Model Home Complex. A Temporary Use Permit and fee will be required for model home complex. Plans shall include the units, front yard landscaping, temporary parking lot, temporary fencing, and paved access road, and shall be subject to Planning staff review and approval.

25. Construction Drawings. All Planning, Public Works, and Engineering conditions of approval and mitigation measures shall be copied on the construction drawings. The Conditions shall be annotated for ease of reference (i.e. Sheet and detail numbers).

26. School District. The proposed project shall adhere to the standard requirements and mitigation fees established by the School District.

27. Lighting. Plans shall include decorative coach lighting for each home, depending on the architecture; the applicant shall work with staff on the location and appropriate lighting fixtures for each home. In addition to decorative coach lighting, the home builder must 938

Conditions of Approval September 29, 2026
provide lighting at all exterior doorway entrances, including the front door entrance, sidedoor entrances, and rear/sliding door entrances. Lighting shall consist of either coach lighting or under-soffit lighting.

28. Construction Practices. To reduce potential noise and air quality nuisances, the following items shall be listed as "General Notes" on the construction drawings:
a. When Construction is Adjacent to Residential. Construction activities and equipment maintenance are limited to weekday hours from 8:00 a.m. to 6:00 p.m. or as approved by the City Engineer and/or Building Official. No work is permitted on weekends or federal or city holidays. Non-noise-generating activities (e.g., interior painting) are not subject to these restrictions.
b. Construction routes are limited to City of Perris designated truck routes. c. Water trucks or sprinkler systems shall be used during clearing, grading, earth moving, excavation, transportation of cut or fill materials, and construction phases to prevent dust from leaving the site and to create a crust after each day's activities cease. At a minimum, this would include wetting down such areas in the late morning and after work is completed for the day and whenever wind exceeds 15 miles per hour. d. A person or persons shall be designated to monitor the dust control program and to order increased watering as necessary to prevent the transport of dust off-site. The name and telephone number of such people shall be provided to the City. Also, a board shall be placed at the subject site to include a person and phone number for the public to call in case of dirt and dust issues.
e. Project applicants shall provide construction site electrical hook-ups for electric hand tools, such as saws, drills, and compressors, to eliminate the need for diesel-powered electric generators or provide evidence that electrical hook-ups at construction sites are not practical or prohibitively expensive.

29. ADA Compliance. The project shall conform to all disabled access requirements in accordance with the State of California, Title 24, and the Federal Americans with Disabilities Act (ADA).

30. Screening of Roof-Mounted Equipment. No roof-mounted equipment is proposed for this project. If applicable, proper screening shall prevent public views of all HVAC equipment and roof-mounted equipment. Also, all vent pipes and similar devices shall be painted to match the building.

31. Mechanical Equipment. All mechanical equipment, including air conditioning units, pool equipment, etc., shall be screened from the public right-of-way by a view obscuring fence, wall, or landscaping to the satisfaction of the Planning Division.

32. Downspouts. Exterior downspouts are not permitted on building elevations facing the public right-of-way unless they are used as a decorative feature on the home or clubhouse.

Otherwise, direct downspouts away from the façade of the home or clubhouse. 939

Conditions of Approval September 29, 2026

33. Trash Enclosures. If required for the Clubhouse, the trash enclosure shall be screened with landscaping (vines and shrubs) and provide decorative solid trellis cover per the development plans presented to the Planning Commission. Furthermore, the trash enclosure location shall have an ADA path of travel from each building to the trash enclosure it is meant to serve.

34. Utilities. If applicable, all utilities such as cable TV and electrical distribution lines (including those that provide direct service to the project site and/or currently exist along public right-of-way) adjacent to the site shall be placed underground, except for electrical utility lines rated at 65kv or larger.

35. On-site & Off-site Utilities. All utilities attached to buildings, including meters and utility boxes, shall be painted to match the wall of the building to which they are affixed. These facilities shall also be screened from the public right-of-way by landscaping.

36. Floor Plan Requirements: The applicant shall submit the plans to Planning staff for review and approval. Plans shall comply substantially with the plans approved by the City Council. To facilitate the potential future conversion of a bedroom to a Junior Accessory Dwelling Unit (JADU), the following requirement shall also apply:
a. Future JADU Conversion: Prior to issuance of building permits for each proposed residence, the final floor plans shall identify the bedroom intended for potential future conversion to a JADU. The floor plan shall demonstrate that the proposed configuration is designed to facilitate a future JADU conversion consistent with the applicable requirements of the Perris Municipal Code and State law. Any future JADU conversion shall be subject to the City’s applicable review and permitting requirements and the regulations in effect at the time of application.

37. Building Elevation Requirements. The applicant shall submit the final fence and wall plans to Planning staff for review and approval. Plans shall comply substantially with the plans approved by the City Council. Revise the building elevations such that the plans incorporate the following:
a. Enhanced Elevations. Residences visible to adjacent roadways and all corner lots shall have enhanced elevations as provided on the approved plans. b. Modern Farmhouse Elevation. The “Day Spa” color shall be used as an accent color instead of the primary color.

38. Landscape and Irrigation Plans. Submit three (3) copies of the landscape and irrigation plans to the Planning Division for review and approval. Design modifications may be required as deemed necessary. A separate application and applicable fee are required.

Landscape plans shall comply substantially with the conceptual plans approved by the City Council. The plans shall be prepared by a California-registered Landscape Architect and conform to the requirements of Chapter 19.70 – Landscaping of the Perris Municipal Code.

The following shall be included:
a. Street Frontages. All landscaping fronting onto the perimeter of the project site and adjacent to the surrounding streets shall consist of tiered plant materials subject to 940

Conditions of Approval September 29, 2026
Planning staff review and approval.
b. EMWD. Landscape plans shall be submitted concurrently to the Eastern Municipal Water District (EMWD) for review and approval.
c. BMPs for Water Quality. All BMPs (vegetated swales, etc.) shall be shown on the landscape plans with appropriate planting and irrigation. Trees shall be planted as closely as possible to screen the bio-retention areas.
d. Water Conservation. Landscaping must comply with AB 325 for water conservation.

Refer to Chapter 19.70 – Landscaping, for water conservation calculations (MAWA). e. Maintenance. All required landscaping shall be maintained in a viable growth condition for the project's life.
f. Irrigation Rain Sensors. Rain-sensing override devices shall be required on all irrigation systems (PMC 19.70.040.D.16.b) for water conservation. Soil moisture sensors are required.
g. Uplighting. Uplighting of project entrance trees and landscaping shall be provided on both sides of the entrance driveway on “A” Street.
h. Evergreen Tree Requirement. The developer shall provide two (2) 15-gallon evergreen trees per lot in the rear setback along the property lines of Lots 7 through 16. i. Entry Roundabout. The developer shall enhance the entry roundabout with the appropriate plant materials including trees, accent plants or similar treatments subject to Planning Staff approval.
j. Palm Trees. The developer shall replace the palm trees around the clubhouse and pool deck with an alternative tree species.
k. Dog Park Landscaping. The developer shall provide a suitable grass or turf surface within the dog park, subject to review and approval by Planning staff. Additionally, a shade structure/shade sail shall be provided within the park to provide shade for visitors. l. Project Entry Monument Sign. The developer shall redesign and embellish the monument sign and enhance it with a planter box underneath the sign along with uplighting.

39. Fence and Wall Plan Requirements. The applicant shall submit the final fence and wall plans to Planning staff for review and approval. Plans shall comply substantially with the plans approved by the City Council. Revise the fence and wall plan such that the plan incorporates the following:
a. Tubular Steel Fence. Decorative pilasters and caps shall be added at prominent corners and throughout the tubular steel fencing to break up the massing. b. Perimeter Wall Pilasters. Pilasters shall consist of split-face block wall or other decorative material of a color complementary to the perimeter wall, subject to Planning 941

Conditions of Approval September 29, 2026
staff review and approval.
c. Dog Park Fencing. The welded-wire steel fencing around the dog park shall be replaced with black tubular steel fencing. Additionally, fencing shall be provided within the dog park to provide a separate area for large and small dogs. d. Additional Fencing. Additional fencing shall be consistent with height, colors and materials approved for this project. Any additional fencing not shown on the plans shall be reviewed and approved by Planning staff. Chain-link fencing and other nondecorative fencing are not allowed.
e. Fencing for Private Space. All fencing shall be made of high-quality vinyl f. Graffiti. All decorative masonry walls shall be treated with a graffiti-resistant coat. g. Knox Boxes. Knox boxes are required for all gates and shall be approved by the Fire Marshal and issued by the Building Division.

40. Photometrics Plan (Site Lighting Plan). The applicant shall submit a Photometrics Plan to the Planning Division for review and approval. Full cut-off, low sodium fixtures shall be used to prevent light and glare above the horizontal plane of the bottom of the lighting fixture. A minimum of one (1) foot-candle of light shall be provided in parking and pedestrian area by the clubhouse. Street lighting shall comply with Engineering requirements.

41. Fees. The developer shall pay the following fees before the issuance of building permits:
a. Stephen’s Kangaroo Rat Mitigation Fees.
b. Multiple Species Habitat Conservation Plan fees.
c. Current statutory school fees to all appropriate school districts. d. Any outstanding liens and development processing fees owed to the City. e. Park Development Impact fee.
f. City Development Impact fees.
g. Transportation Uniform Mitigation Fees (TUMF).
h. Appropriate City Development Impact Fees in effect at the time of development.

During Construction:

42. Waste Hauling and Disposal. The project shall use only the City-approved waste hauler for all construction and other waste disposal.
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Conditions of Approval September 29, 2026
Prior To Issuance of Occupancy Permits

43. Model Home Complex. Front yard landscaping, temporary parking lot, temporary fencing, and paved access road shall be constructed and installed before the project's completion of the model home complex.

44. On-Site Landscape Inspections. The project applicant shall inform the on-site project manager and the landscape contractor of their responsibility to call for a final landscape inspection after all the landscaping and irrigation have been installed and are completely operational. Before calling for a final inspection, submit the "Certificate of Compliance" form completed and signed by the designer/auditor responsible for the project to the Project Planner.

45. Final Inspection. The applicant shall obtain occupancy clearance from the Planning Division by scheduling a final Planning inspection after final sign-offs from the Building Division and Engineering Department. Planning staff shall verify that all pertinent conditions of approval have been met. The applicant shall have all the required paving, parking, walls, site lighting, landscaping, and automatic irrigation installed and in good condition.

Operational Conditions:

46. Property Maintenance. The project shall comply with the provisions of Perris Municipal Codes 7.42 regarding Landscape Maintenance, and Chapter 7.06 regarding Property Maintenance. In addition, the project shall comply with the one-year landscape maintenance schedule. In addition, the project shall comply with the one-year landscape maintenance schedule identified in the Public Works Department Conditions of Approval No. 5 dated August 23, 2024.

47. Temporary Uses. Per Chapter 19.60 of the City of Perris Municipal Code, any outdoor use of the common space for special events that will require temporary structures or tents shall be required to apply for a Temporary Use Permit as described in Section 19.60.060 of the City of Perris Municipal Code.

48. Graffiti and Property Maintenance. The project shall comply with the Perris Municipal Code Chapter 7.06 regarding property maintenance for all HOA-maintained fences, walls, and buildings and Chapter 7.26 regarding graffiti removal. The site shall be maintained in a graffiti-free condition at all times. Remove graffiti on site within 48 hours. Graffiti shall be painted over panels, not patches. In addition, it will match the color of the wall or material surface. Furthermore, the applicant shall apply an anti-graffiti coating on the walls. • ENGINEERING DEPARTMENT

49. The project shall adhere to the requirements of the City Engineer, as indicated in the attached Engineering Conditions of Approval dated August 6, 2026. The City Engineer shall review and approve on- and off-site improvement plans. • PUBLIC WORKS DEPARTMENT
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Conditions of Approval September 29, 2026

50. The project shall adhere to the requirements of the Public Works Administration Department as indicated in the attached Conditions of Approval dated August 23, 2024. • COMMUNITY SERVICES DEPARTMENT

51. The project shall adhere to the requirements of the Community Services Department as indicated in the attached Conditions of Approval dated October 16, 2023. • BUILDING & SAFETY DIVISION

52. The project shall adhere to the Building & Safety Division requirements as indicated in the attached Conditions of Approval dated April 14, 2026.
• BUILDING OFFICIAL/FIRE MARSHAL

53. The proposed project shall adhere to all Building Official/Fire Marshal requirements. Fire hydrants shall be located on the project site pursuant to the Building Official and the approved Fire Access Plan. Water, gas, sewer, electrical transformers, power vaults, and separate fire/water supply lines (if applicable) must be shown on the final set of construction plans pursuant to the requirements of the Building Official. All Conditions of Approval shall be included in the building plans. See the City of Perris website, Office of the Fire Marshal, for examples and relevant information for access and the underground plan available at: http://www.cityofperris.org.
• FIRE MARSHAL

54. Prior to the to the issuance of a grading permits a fire department access plan shall be submitted to the City of Perris for review and approval. The fire department access plan shall comply with the requirements specified by the City of Perris Guideline for Fire Department Access & Water Requirements for Commercial & Residential Development, and the California Fire Code, Chapter 5.

55. Prior to the to the issuance of a grading permits, evidence of sufficient fire flow of 1500 GPM for 2 hours shall be provided to the City of Perris. The City of Perris Building and Fire Marshal Water Available/Fire Flow Form shall be utilized.

56. A fire department access road complying with the CFC, Chapter 5 and the approved fire department access plans shall be installed prior to building construction.

57. All required fire hydrants shall be installed and operational prior to building construction.

All fire hydrants shall remain operational during construction.

58. All required fire hydrants shall be readily visible and immediately accessible. A clear space of not less than 3-feet shall be maintained at all times.

59. The permanent building address shall be provided and either internally or externally lighted during hours of darkness. The address shall be clearly visible from the street fronting the property and comply with California Fire Code Section 505.1 for size and color. 944

Conditions of Approval September 29, 2026

60. All buildings shall be provided with an automatic fire sprinkler system in accordance with NFPA 13 and NFPA 13D for single-family residential buildings. Construction plans shall be submitted for review and approval to the City of Perris prior to installation • RIVERSIDE COUNTY AIRPORT LAND USE COMMISSION

60. The project shall comply with Airport Land Use Commission Conditions of Approval dated August 11, 2026 as listed below:
a. Any new outdoor lighting that is installed shall be hooded or shielded so as to prevent either the spillage of lumens or reflection into the sky. Outdoor lighting shall be downward facing.
b. The following uses/activities are not included in the proposed project and shall be prohibited at this site:
i. Any use which would direct a steady light or flashing light of red, white, green, or amber colors associated with airport operations toward an aircraft engaged in an initial straight or circling climb following takeoff or toward an aircraft engaged in a straight or circling final approach toward a landing at an airport, other than a DoD or FAA-approved navigational signal light or visual approach slope indicator.
ii. Any use which would cause sunlight to be reflected towards an aircraft engaged in an initial straight or circling climb following takeoff or towards an aircraft engaged in a straight or circling final approach towards a landing at an airport. iii. Any use which would generate smoke or water vapor, or which would attract large concentrations of birds, or which may otherwise affect safe air navigation within the area. (Such uses include landscaping utilizing water features, aquaculture, production of cereal grains, sunflower, and row crops, composting operations, wastewater management facilities, artificial marshes, trash transfer stations that are open on one or more sides, recycling centers containing putrescible wastes, construction and demolition debris facilities, fly ash disposal, and incinerators.)
iv. Any use which would generate electrical interference that may be detrimental to the operation of aircraft and/or aircraft instrumentation. v. Hazards to flight
c. The attached notice shall be provided to all prospective purchasers of the property and tenants of the building, and shall be recorded as a deed notice. d. Any proposed detention basins or facilities shall be designed and maintained to provide for a maximum 48-hour detention period following the design storm, and remain totally dry between rainfalls. Vegetation in and around the detention basins that would provide food or cover for birds would be incompatible with airport operations and shall not be utilized in project landscaping. Trees shall be spaced so as to prevent large expanses of 945

Conditions of Approval September 29, 2026
contiguous canopy, when mature. Landscaping in and around the detention basin(s) shall not include trees or shrubs that produce seeds, fruits, or berries.

Landscaping in the detention basin, if not rip-rap, should be in accordance with the guidance provided in ALUC “LANDSCAPING NEAR AIRPORTS” brochure, and the “AIRPORTS, WILDLIFE AND STORMWATER MANAGEMENT” brochure available at RCALUC.ORG which list acceptable plants from Riverside County Landscaping Guide or other alternative landscaping as may be recommended by a qualified wildlife hazard biologist.

A notice sign, in a form similar to that attached hereto, shall be permanently affixed to the stormwater basin with the following language: “There is an airport nearby. This stormwater basin is designed to hold stormwater for only 48 hours and not attract birds.

Proper maintenance is necessary to avoid bird strikes”. The sign will also include the name, telephone number or other contact information of the person or entity responsible to monitor the stormwater basin.
f. March Air Reserve Base must be notified of any land use having an electromagnetic radiation component to assess whether a potential conflict with Air Base radio communications could result. Sources of electromagnetic radiation include radio wave transmission in conjunction with remote equipment, including irrigation controllers, access gates, etc.
g. The project has been evaluated to subdivide 12.8 acres into 91 single-family residential lots; any change in use to any higher intensity use, change in building location, or modification of the tentative parcel map lot lines and areas will require an amended review to evaluate consistency with the ALUCP compatibility criteria, at the discretion of the ALUC Director.

END OF CONDITIONS
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ENGINEERING DEPARTMENT 1 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

CONDITIONS OF APPROVAL
August 6, 2026
PLN 22-05153 – TTM 37907
PLN 22-00014 – DPR
PLN 22-05152 – PDO
NWC Metz Road and A Street - (Pacific Lantana)
91 Single-Family Detached Residential Units
With respect to the Conditions of Approval for the above referenced project, the City of Perris requires that the developer provide the following street improvements and/or road dedications in accordance with the City of Perris Municipal Code Title 18. It is understood that the site plan correctly shows all existing and proposed easements, traveled ways, rights-of-way, and drainage courses with appropriate Q’s and that their omission may require resubmittal for further consideration. These Ordinances and the following conditions are essential parts and requirements occurring in one is as binding as though occurring in all. They are intended to be complimentary and to describe the conditions for a complete design of the improvements. Unless otherwise noted, all offsite improvements as conditions shall be installed prior to issuance of any occupancy permits. All questions regarding the true meaning of the conditions shall be referred to the City Engineer’s office.

In the event of a conflict between any conditions stated below, those imposed by Planning Department and others, and requirements identified in the approved Traffic Impact Analysis, the most stringent in the opinion of the City shall prevail.

General Conditions:

1. The project grading shall be in a manner to perpetuate existing natural drainage patterns. Any deviation from this, concentration or increase in runoff must have approval of adjacent property owners and City Engineer.

The developer/property owner shall accept the offsite runoff and convey to acceptable outlet.

CITY OF PERRIS

ENGINEERING DEPARTMENT
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ENGINEERING DEPARTMENT 2 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

2. Prior to commencement of any construction or installation of fencing in public right-of-way, an encroachment permit shall be obtained from the City Engineer’s office.

3. In the event that external agencies must review the plans and inspect improvements, the developer/property owner shall be responsible to pay the respective plan check and inspection fees.

4. All trenches shall be securely covered with steel plates until permanent backfill and street repairs have been completed per City of Perris Standards; temporary backfill of trenches is not acceptable.

5. Construction activities are limited to weekdays from 8:00 AM to 6:00 PM or as approved by the City Engineer and/or Building Official. No work is permitted on weekends or federal or city holidays. Non-noise-generating activities (e.g., interior painting) are not subject to these restrictions.

6. The contractor shall provide written notification to all adjacent property owners and occupants at least 7 days prior to the start of construction activities.

7. Prior to the start of any earthwork, grading, or construction activity on the project site, the developer/property owner shall verify in the field the location and ownership of any existing fence, wall or retaining structure situated on or along a shared property line with an adjacent parcel. The developer/property owner shall obtain a signed agreement from each adjacent property owner, which shall identify the scope of work and acknowledge that any shared structure may be impacted, damaged, removed, or require modification as a result of earthwork, grading, construction activity or as required by project conditions of approval to be fully restored to equal or better condition. A copy of each fully executed agreement shall be provided to the City Engineer prior to issuance of any permit. The city shall not be responsible for resolving any disputes between private property owners regarding existing or shared improvements.

8. The developer/property owner shall provide for all traffic mitigation measures and improvements as depicted in the Traffic Impact Analysis prepared by Albert A. Webb Associates, and as conditioned below as approved by the City Engineer including but not limited to:
a. One point of access/driveway is permitted on A Street. i. This driveway shall allow for full vehicular access. ii. The driveway shall be stop controlled for eastbound traffic. b. Emergency Vehicle Secondary Access is permitted on McKimball Road and shall be approved by the City’s Fire Marshall.
948
ENGINEERING DEPARTMENT 3 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120
c. A Street (Secondary Arterial 94′/64′), along the property’s frontage including necessary transitional zone south of Metz Road within dedicated right-of-way, shall be improved to provide for the following improvements:
i. 6 inch curb and gutter 32 feet west of centerline.
ii. New pavement from the new curb and gutter to the existing easterly edge of pavement using a TI of 9.0, minimum
pavement structural section shall be 8 inch Asphalt
Concrete PG70-10 over 12 inch Class II Aggregate Base.
iii. The parkway shall be 15 feet wide consisting of an 8-footwide sidewalk at property line as approved by City Engineer, Planning Department and Public Works Department, 7 feet of landscaping, and streetlights subject to the result of a photometric study prepared by a Registered Electrical
Engineer per City of Perris, County of Riverside and Caltrans standards.
iv. The taper lengths of the transitional zone shall be constructed southbound after Metz Road in accordance with the Caltrans Highway Design Manual, as determined by the project's Traffic Engineer and approved by the City Engineer.

Any necessary street widening south of Metz Road along the west side of A Street shall be constructed to accommodate lane tapering.
d. Metz Road (Collector Road 66′/44′), along the property’s frontage within dedicated right-of-way, shall be improved to provide for the following improvements:
i. 6 inch curb and gutter 22 feet north of centerline.
ii. New pavement from the new curb and gutter to the existing southerly edge of pavement using a TI of 8.0, minimum
pavement structural section shall be 7 inch Asphalt
Concrete PG70-10 over 10 inch Class II Aggregate Base.
iii. The parkway shall be 11 feet wide consisting of a 6-foot-wide sidewalk at property line as approved by City Engineer, Planning Department and Public Works Department, 5 feet of landscaping, and streetlights subject to the result of a photometric study prepared by a Registered Electrical
Engineer per City of Perris, County of Riverside and Caltrans standards.
949
ENGINEERING DEPARTMENT 4 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120
e. McKimball Road (Local Road 60′/40′), along the property’s frontage within dedicated right-of-way shall be improved to provide for the following improvements:
i. A 6 inch curb and gutter 20 feet east of centerline. ii. New pavement from the new curb and gutter to the existing westerly edge of pavement using a TI of 7.0, minimum
pavement structural section shall be 6 inch Asphalt
Concrete PG70-10 over 8 inch Class II Aggregate Base.
iii. The parkway shall be 10 feet wide consisting of a 6-foot-wide sidewalk at property line as approved by City Engineer, Planning Department and Public Works Department, 4 feet of landscaping, and streetlights subject to the result of a photometric study prepared by a Registered Electrical
Engineer per City of Perris, County of Riverside and Caltrans standards.
f. Onsite private local roadways (44'/36') shall be improved to provide for the following improvements:
i. A 6 inch curb and gutter 18 feet located on both sides of the centerline.
ii. New pavement from the new curb and gutter to the existing westerly edge of pavement using a TI of 6.0, minimum
pavement structural section shall be 4 inch Asphalt
Concrete PG70-10 over 6 inch Class II Aggregate Base.
iii. The parkway shall be 4 feet wide consisting of a 4-foot-wide sidewalk, and streetlights subject to the result of a
photometric study prepared by a Registered Electrical
Engineer per City of Perris, County of Riverside and Caltrans standards.
iv. Parking shall be provided as directed by the City’s Fire Marshall.
g. Private gated entry roadway (82.5'/50') shall be improved to provide for the following improvements:
i. A 6 inch curb and gutter 25 feet located on both sides of the centerline.
ii. 42 feet of new pavement using a TI of 6.0, minimum
pavement structural section shall be 4 inch Asphalt
Concrete PG70-10 over 6 inch Class II Aggregate Base.
iii. An 8-foot wide median shall be constructed per preliminary grading plan.
iv. The parkway shall be 16.25 feet wide consisting of a 5-footwide sidewalk, 11.25 feet of landscaping, and streetlights subject to the result of a photometric study prepared by a Registered Electrical Engineer per City of Perris, County of Riverside and Caltrans standards.
950
ENGINEERING DEPARTMENT 5 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120
h. The developer/property owner shall pay to the City $150,000 for their fair share contributions towards traffic signal installation improvements at the intersection of A Street and Metz Road.

As an interim traffic mitigation measure until traffic signal is installed, the developer/property owner shall install signing and striping improvements to create an all-way stop at the intersection of A Street and Metz Road. Stop and Stop Ahead signs shall be solarpowered flashing LED as approved by the City Engineer. i. A “Case A” curb return per Riverside County Standard 403 shall be installed at the northeast corner of Metz Road and McKimball Road as approved by the City Engineer.
j. A “Case A” curb return per Riverside County Standard 403 shall be installed at the northwest corner of Metz Road and A Street as approved by the City Engineer.

9. The driveways shall be per County of Riverside Standard No. 207A and shall include wet set concrete truncated domes in compliance with ADA standards and requirements. The driveways curb returns shall be within the property limits and shall not infringe on adjacent properties.

10. The developer/property owner shall provide for all drainage mitigation measures and improvements as depicted in the Preliminary Drainage Study prepared by KWC Engineers, and as conditioned below as approved by the City Engineer including but not limited to:
a. The developer/property owner shall install a catch basin along the property frontage on Metz Road to collect all off-site runoff. A minimum 18” off-site RCP shall be installed to convey drainage to the east along the north side of Metz Road at a minimum of 2 feet depth from surface. The ultimate point of discharge shall be at a minimum 500 feet east of the Centerline of A Street or as approved by the City Engineer.
b. Drainage and flood control facilities and improvements shall be provided in accordance with Riverside County Flood Control and Water Conservation District (RCFCD) and the City of Perris requirements and standards.
c. The developer/property owner shall construct necessary improvements that protects the site from offsite flows as directed and approved by the City Engineer and RCFCD.
951
ENGINEERING DEPARTMENT 6 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120
d. Construction of drainage facilities including catch basins and minimum 18” RCP at all public street intersections to eliminate runoff from all cross gutters will be required.
e. The Perris Valley MDP Lateral P-4 on A Street shall be constructed from the detention basin at the northeast corner of the property and shall continue east to its ultimate point of discharge at the Metz Detention Basin. All tributary runoff along the frontage of the property shall be collected and conveyed via an underground drainage system to the MDP Lateral P-4 for 100-year runoff.
f. A drainage easement shall be provided for the storm drain within the property described as APN 311-040-013 as described above for the Perris Valley MDP Lateral P-4 storm drain system.
g. The project site is in Perris Valley Area Drainage Plan (ADP) and subject to payment of ADP fee.
h. Catch basin inserts shall be provided and approved by the Public Works Department.

11. An encroachment permit shall be obtained for any work that is to be performed within the RCFCD right-of-way or impacting District facilities.

The encroachment permit application shall be processed and approved concurrently with the improvement plans.

12. A Preliminary Water Quality Management Plan (PWQMP) was prepared for the proposed project site. All PWQMP’s were determined to be in substantial compliance, in concept, with the 2012 Riverside County WQMP Manual requirements. The following conditions apply:
a. The development shall be subject to all provisions of City of Perris Ordinance Number 1194, which establishes stormwater/urban runoff management and discharge controls to improve water quality and comply with federal regulations and any subsequent amendments, revisions, or ordinances pertaining to thereto.
b. The structural Best Management Practices (BMPs) selected for this project have been approved in concept. The owner shall submit a final WQMP including plans and details providing the elevations, slopes, and other details for the proposed structural BMPs. The Engineering Department shall review and approve the final addendum WQMP text, plans, and details.
952
ENGINEERING DEPARTMENT 7 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

13. The developer/property owner acknowledges that the Eastern Municipal Water District (EMWD) conducts a separate review and conditioning process independent of the City's review and approval procedures. The developer/property owner understands that, as noted in typical EMWD Will Serve Letter, additional requirements for service from EMWD may include but are not limited to: plan checks, facility construction, inspections, jurisdictional annexation, and payment of financial participation charges.

Therefore, to define EMWD requirements, the developer/property owner shall continue to coordinate with EMWD's Development Services Department to understand the necessary service arrangements and to prepare Facility Design Conditions (DCs), Recycled Water Use Plan/Exhibits (RWUP/RWUEs), including any City conditions related to concrete intersections or driveways that may require EMWD facilities or the extension of facilities beyond the concrete limits.

The developer/property owner further understands that the approved EMWD DCs must be obtained from EMWD prior to any plans being submitted to the City.

The developer/property owner shall work with EMWD to provide at a minimum the below facilities:
a. Recycled water facilities as conditioned by EMWD
b. Sewer facilities as conditioned by EMWD
c. Potable water facilities as conditioned by EMWD

14. The developer/property owner shall submit the following to the City Engineer, Fire Department, Eastern Municipal Water District (EMWD), Riverside County Flood Control District (RCFCD) as applicable, for review and approval:
a. Grading Plan and Erosion and Sediment Control Plans
b. Street and Storm Drain Improvement Plans
c. Signing and Striping Plans
d. Water and Sewer Improvement Plans
e. Street Light Plans prepared by a registered Electrical Engineer per City of Perris Safety Lighting Standards
f. Geotechnical Report
g. Hydrology and Hydraulic Report
h. Final WQMP
i. Traffic Control Plans
The design shall be in conformance with EMWD, RCFCD, Riverside County Transportation Department, Caltrans, City of Perris and ADA most recent standards, criteria and requirements in effect at the time of construction and shall be coordinated with the approved plans of the adjacent developments.
953
ENGINEERING DEPARTMENT 8 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

15. The developer/property owner shall coordinate improvements with adjacent proposed and approved developments.

16. In the event that the electrical cables are under 66 kV, the existing power poles on A Street along the property frontage shall be removed, and the electrical and communication cables shall be placed underground.

If the electrical cables exceed 66 kV, the existing power poles shall be relocated to accommodate the roadway widening.

The developer/property owner shall provide an analysis from a utility consultant verifying compliance with this condition.

17. The owner/developer shall be responsible for the redirection and relocation of existing power poles on McKimball Road along the property frontage, to accommodate the roadway widening.

18. The project shall be annexed into any assessment, community facilities, or similar district that provides funding for maintenance, services, or public improvements that benefit the project, or provision shall be made satisfactory to the City for providing these services in the applicable district. The costs and benefits shall be described in the applicable district and annexation documents. The developer shall complete all applicable annexations prior to issuance of any grading permit, issuance of any building permit, or recordation of a Final Map, whichever occurs first. In addition to districts that exist as of the date of project approval, this condition shall include later-formed districts provided that such districts are in existence as of the time of issuance of any grading permit or building permit for the project, as applicable. Such districts may include but are not limited to the following:
a. Landscape Maintenance District No. 1
b. Flood Control Maintenance District No. 1 (may include Streets) c. Maintenance District No. 84-1 (Street Lights and Traffic Signals) d. Perris Community Facilities Assessment Districts; and e. Any other applicable City Assessment, Community Facilities Districts Prior to Recordation of the Tract Map:

19. The developer/property owner shall have the aforementioned improvement plans and Tract map approved, executed subdivision agreement and posted securities prior to map recordation.

20. The tract map shall be filed with the City and processed for review, approval, and subsequent recordation.
954
ENGINEERING DEPARTMENT 9 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

21. The following easements and/or rights-of-way shall be offered for dedication to the public or other appropriate agencies in perpetuity and shall continue in force until the City or the appropriate agency accepts or abandons such offers:
a. A Street is classified as a Secondary Arterial (94′/64′), per the General Plan. Adequate right-of-way shall be dedicated along the property frontage on A Street to accommodate a 47-foot half-width right-ofway, as determined and approved by the Planning Department, Public Works Department, and the City Engineer.
b. Metz Road is classified as a Collector Road (66′/44′), per the General Plan. Adequate right-of-way shall be dedicated along the property frontage on Metz Road to accommodate a 33-foot half-width right-ofway, as determined and approved by the Planning Department, Public Works Department, and the City Engineer.
c. McKimball Road is classified as a Local Road (60′/40′), per the General Plan. Adequate right-of-way shall be dedicated along the property frontage on McKimball Road to accommodate a 30-foot halfwidth right-of-way, as determined and approved by the Planning Department, Public Works Department, and the City Engineer. d. Property line corner cutbacks shall be dedicated per County of Riverside Standard No. 805.
e. A drainage easement shall be dedicated as described in condition 10 for the private drainage course.
f. If applicable, easements shall be dedicated to public utilities and emergency vehicle access for all private streets and drive-isles.

All dedications shall be free from all encumbrances as approved by the City Engineer.

22. The developer/property owner shall relinquish and waive rights of access along the property frontage on A Street, Metz Road, and McKimball Road, except for the access openings per the approved Tentative Tract Map 37907.

23. In the event that offsite easements or rights-of-way are required to complete offsite improvements, the developer/property owner shall make a good faith effort to acquire the required property interest for construction of the improvements and if the developer/property owner shall fail to do so, the developer/property owner shall enter into an agreement with the City for acquisition of the easements or rights-of-way. The agreement shall provide for payment by the developer/property owner of all costs incurred by the 955
ENGINEERING DEPARTMENT 10 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120
City to acquire the offsite property interests required in connection with the subdivision. Security of a portion of these costs shall be in the form of a cash deposit in the amount given in an appraisal report obtained by the developer/property owner (at developer/property owner cost). The appraiser shall be approved by the City prior to commencement of the appraisal.

24. The following statement shall be added to the Map:
"Notice of drainage fees" Notice is hereby given that this property is in the Perris Valley Area Drainage Plan (ADP), which was adopted by the City of Perris pursuant to Ordinance and Section 66483, et seq, of the Government Code and that said property is subject to fees for said drainage area. Notice is further given that, pursuant to Ordinance 13-01, payment of the drainage fees shall be paid to the City of Perris prior to issuance of the building permit, and that the property owner prior to issuance of the building permit, shall pay the fee required at the rate in effect at the time of issuance of the actual permit.

25. The project shall be annexed into any assessment, community facilities, or similar district that provides funding for maintenance, services, or public improvements that benefit the project, or provision shall be made satisfactory to the City for providing these services in the applicable district. The costs and benefits shall be described in the applicable district and annexation documents. The developer shall complete all applicable annexations prior to issuance of any grading permit, issuance of any building permit, or recordation of a Final Map, whichever occurs first. In addition to districts that exist as of the date of project approval, this condition shall include later-formed districts provided that such districts are in existence as of the time of issuance of any grading permit or building permit for the project, as applicable. Such districts may include but are not limited to the following:
a. Landscape Maintenance District No. 1
b. Flood Control Maintenance District No. 1 (may include Streets) c. Maintenance District No. 84-1 (Street Lights and Traffic Signals) d. Perris Community Facilities Assessment Districts; and e. Any other applicable City Assessment, Community Facilities Districts Prior to Issuance of Grading Permit:

26. The design for tributary and treated onsite runoff shall be collected and connected via underground storm drain facility, to Perris Valley Master Drainage Facilities as stated in Condition 10 as approved by the City Engineer.
956
ENGINEERING DEPARTMENT 11 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

27. To mitigate impacts related to pollutant loading to receiving waters and/or increased erosion/siltation resulting from the long-term operation of the project, the developer/property owner shall develop, submit to the City for review and approval, and implementation of the Final WQMP (FWQMP).

The FWQMP shall contain measures that will effectively treat all pollutants of concern and hydrologic conditions of concern, consistent with the PWQMP and developed in compliance with the Municipal Separate Storm Sewer System (MS4) permit. The FWQMP shall specifically identify pollution prevention, source control, treatment control measures, and other Best Management Practices (BMPs) that shall be used on-site to control predictable pollutant runoff to reduce impacts to water quality to the maximum extent practicable. The FWQMP shall substantially comply with site design, source control, and treatment control BMPs proposed in the approved PWQMP.

28. The developer/property owner shall submit the following to the City Engineer, Fire Department, EMWD, and RCFCD as applicable, for review and approval:
a. Grading Plan and Erosion and Sediment Control Plans
b. Street and Storm Drain Improvement Plans
c. Signing and Striping Plans
d. Water and Sewer Improvement Plans
e. Street Light Plans prepared by a registered Electrical Engineer per City of Perris Safety Lighting Standards
f. Geotechnical Report
g. Hydrology and Hydraulic Report
h. Final WQMP
i. Traffic Control Plans
The design shall be in conformance with EMWD, RCFCD, Riverside County Transportation Department, Caltrans, City of Perris and ADA most recent standards, criteria and requirements in effect at the time of construction and shall be coordinated with the approved plans of the adjacent developments.

Prior to Issuance of Building Permit:

29. The developer/property owner shall process Tract Map 37907 with the City for review and approval and subsequent recordation.

30. The project site is located within the limits of Perris Valley Area Drainage Plan (ADP), for which drainage fees have been adopted by City. Drainage fees shall be set forth under the provisions of the “Rules and Regulations of Administration of Area Drainage Plan”. Acreage for the project site’s impervious area shall be provided.
957
ENGINEERING DEPARTMENT 12 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120

31. Paved access shall be provided to the proposed buildings per the Precise Grading Plans.

32. The developer/property owner shall submit a compaction certification from the Soils Engineer in compliance with the approved geotechnical/soils report and an elevation certification from the Engineer of Record in compliance with the approved plans.

Prior to Issuance of Certificate of Occupancy:

33. The developer/property owner shall complete the construction of all public improvements, including but not limited to roadway improvements and drainage improvements, as specified above and accepted by the City.

34. The Developer/Property Owner shall pay to the City $150,000 for their fair share contributions towards traffic signal installation improvements at the intersection of A Street and Metz Road.

As an interim traffic mitigation measure until traffic signal is installed, the Developer/Property Owner shall install signing and striping improvements to create an all-way stop at the intersection of A Street and Metz Road.

Stop and Stop Ahead signs shall be solar-powered flashing LED as approved by the City Engineer.

35. The developer/property owner shall provide utility trench surface repair per City of Perris standards as directed by the City Engineer.

36. In the event that the electrical cables are under 66 kV, the existing power poles on A Street along the property frontage shall be removed, and the electrical and communication cables shall be placed underground.

If the electrical cables exceed 66 kV, the existing power poles shall be relocated to accommodate the roadway widening.

The developer/property owner shall provide an analysis from a utility consultant verifying compliance with this condition.

37. The developer/property owner shall be responsible for the redirection and relocation of existing power poles on McKimball Road along the property frontage, to accommodate the roadway widening.

38. Associated existing signing and striping shall be refreshed and any appurtenances damaged or broken during the development of this project shall be repaired or removed and replaced by the developer/property owner to the satisfaction of the City Engineer. Any survey monuments damaged or destroyed shall be reset by qualified professional pursuant to the California Business and Professional Code 8771.
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ENGINEERING DEPARTMENT 13 | P a g e
24 S. D St., PERRIS, CA 92570
TEL.: (951) 956-2120
Prior to City Acceptance of Public Improvements:

39. The Developer/Property Owner shall maintain, at its sole cost and expense, all public improvements constructed pursuant to this approval, including but not limited to: roadway improvements, drainage facilities, streetlights, traffic signals, and landscaping, for a period of one (1) year following reduction of the improvement security, and/or completion of all punch list items.

40. The Developer/Property Owner shall provide “As-Builts” to the City Engineer.
959

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
MEMO
Date: August 23, 2024
To: Mathew Evans, Planner
From: Jessica Galloway, Special Districts Supervisor
By: Chris Baldino, Landscape Inspector
Subject: DPR 22-00014 – Conditions of Approval - Proposal to subdivide 12.80 acres into 91 single-family lots located at the northwest corner of “A” Street and Metz Road.

1. Dedication and/or Landscape Maintenance Easement. Offer of Dedication and Landscape Maintenance Easement for City landscape maintenance district shall be provided as follows:
• “A” Street - Provide offer of dedication as needed to provide for full half width Street (94’ ROW (47’ half-width), curb gutter, 10’ wide shared use sidewalk, and off-site landscaping requirements, per City General Plan, including minimum 15’ public parkway.
• Metz Road - Provide offer of dedication as needed to provide for full half width Street (66’ ROW (33’ half-width), curb gutter, sidewalk, and off-site landscaping requirements, per City General Plan, including minimum 11’ public parkway from face of curb.
• McKimball Road - Provide offer of dedication as needed to provide for full half width Street (60’ ROW (30’ half-width), curb gutter, sidewalk, and off-site landscaping requirements, per City General Plan, including minimum 10’ public parkway from face of curb.
• Provide offer of dedication and landscape maintenance easement as needed to match parkway width of adjacent development. Match distance shall be made from face of curb, and shall provide for matching, curb gutter, sidewalk, and off-site landscaping requirements, if existing parkway is greater than standard City General Plan width shown on Circulation element, including minimum 20’ public parkway from face of curb from Metz Road north to the existing adjacent development along A Street.
960

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT

2. Landscape Maintenance Easement and Landscape Easement Agreement - The developer shall provide, for review and approval, an Offer of Dedication and certificate of acceptance, complete with legal plat map and legal description to the City of Perris.

In addition, if required by the City of Perris, the Developer shall provide a landscape easement and Landscape easement agreement, acceptable to the City of Perris. The City shall record the same with the Riverside County Recorder’s Office, and the recorded instrument shall be returned to the City Clerk of the City of Perris for filing.

3. Landscaping Plans. Three (3) copies of a Site Responsibility Maintenance Exhibit shall be submitted prior to submitting the Landscape Plans for approval. This site plan shall be titled “Site Responsibility Maintenance Exhibit for DPR22-00014” and identify, with different colors, each area and who will be responsible for the maintenance, such as LMD, HOA, or Private, on the plans. Provide a legend with different colors for each area with square footage. Provide a matrix complete with quantities for off-site trees, shrub, mow curb, irrigation controller with number of stations. Three (3) copies of Construction Landscaping and Irrigation Plans for the offsite landscaping, including any medians or other landscape areas along the dedications shall be submitted to the Planning Department for approval and shall be accompanied by the appropriate filing fee. The landscape and irrigation plan shall be prepared by a registered landscape architect and conform to the requirements of Chapter 19.70 of the Municipal Code. The location, number, genus, species, and container size of the plants shall be shown. This landscape plan shall be titled “Off-site Landscape Plan for DPR22- 00014” and shall be exclusive of any private property, on-site landscaping. Elements of the Landscape Plan shall include but not be limited to:
a. Landscape Limits – Limits of right-of-way areas or easement areas, defined by concrete mow curb, fully dimensioned, that are to be annexed into the Landscape Maintenance District. A planting palette and hardscape plan intended to meet the design intent of the Landscape Guidelines in effect for the area; or if no such guidelines exist the design intent of neighboring development, as determined by the Engineering Administration and Special Districts Division, including:
• ‘A’ Street –Tree Primary: Searsia lancea African Sumac, Secondary (accent tree): Lagestromia-Indian Tribe Varieties in alternating groups of three. Use drought resistant shrubs and ground cover including but not limited to the following: Lilly of the Nile (Agapanthus Africanus), Red Yucca, Red Hot Poker, Rhaphiolepsis Indica Indica, (Indian Hawthorn), Iceberg Rose, Rosa red Ribbons (Groundcover Rose).
961

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
• Metz Road- Gleditisia Thornless Honey Locust. Use drought resistant shrubs and ground cover intended to complement the parkways proposed for A Street, including but not limited to the following following Lilly of the Nile (Agapanthus Africanus), Red Yucca, Red Hot Poker, Rhaphiolepsis Indica Indica, (Indian Hawthorn), Iceberg Rose, Lantana sellowiana Trailing Lantana.
• McKimball Road – Cupaniopsis Anacardioides Carrot Wood. Use drought resistant shrubs and ground cover intended to complement the parkways proposed for A Street, including but not limited to the following following Lilly of the Nile (Agapanthus Africanus), Red Yucca, Red Hot Poker, Rhaphiolepsis Indica Indica, (Indian Hawthorn), Iceberg Rose, Lantana sellowiana Trailing Lantana.
b. Irrigation – A list of irrigation system components intended to meet the performance, durability, water efficiency, and anti-theft requirements for Special District landscape areas as determined by the Special Districts Division.

Components shall include, but not be limited to Rainbird XBT-20PC w/ Diffuser, or equal on flexible PVC risers, Sentry Guard Cable Guard and Union Guard, and backflow Wilkens Model 375 (or equal). The controller shall include an ET based controller with weather station that is centrally controlled capable and wi-fi ready (Weather Trak Pro3, or equal, with Rain Sensor). At the discretion of the Special Districts Division public landscape areas utilizing no more than 6 valves/stations, programmed to irrigate consecutively, and none simultaneously, may propose the use of an alternative ET based controller with weather station that is centrally controlled capable and wi-fi ready, such as the Weathermatic System or equal. The proposed system shall be complete with wireless weather station, aircard with flow, one year bundle service, blade antenna and flow sensor, and ET programmed.
c. Benefit Zone Quantities – Include a Benefit Zone quantities table (i.e. SF of planting areas, turf, number of trees, SF. of hardscape, etc.) in the lower righthand corner of the cover sheet for off-site landscape areas, indicating the amount of landscaping the district will be required to maintain. d. Meters – Each District is required to be metered separately. A meter cannot be shared between Flood Control District #1, Landscape Maintenance District #1, and/or Lighting Maintenance District 84-1, nor can a meter servicing on-site improvements be used to provide water and/or power to off-site improvements. All electrical and water meters shall be in locations that are easily accessible to 962

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
maintenance staff while not visually obtrusive in the street scene and away from street intersections. Show location of separate water and electrical utility meters intended to serve maintenance district areas exclusively. Show locations of water and electrical meter for landscape district. Show location of water and electrical meter for flood control district. Show location of electrical meter for Traffic signal and street lighting district, on respective plans. Coordinate location of meters on landscape, Eastern Municipal Plans (EMWD) (if applicable), and civil engineering plan.
e. Controllers - The off-site irrigation controllers are to be located within the right of way (preferably within the off-site landscape area). All point of connection equipment including irrigation controller pedestals, electrical meter pedestals, and backflow preventers are to be located in locations that are easily accessible to maintenance staff while not visually obtrusive in the street scene, and away from street intersections. Backflow preventers are to be screened on at least three sides with (5) gallon plant material. The fourth side shall be open to the back of the landscape area in order to allow the backflow cage to be opened without interference with plant materials. Backflow cages shall meet the required City of Perris Engineering Standards in effect at the time of approval. f. Recycled Water - If applicable. The project landscape architect shall coordinate with EMWD to verify if the site will be served with recycled water and design all irrigation and landscape plans to meet the requirements of EMWD and provide additional irrigation components as needed.
g. EMWD Landscape Plan Approval – The project landscape architect shall submit a copy of all irrigation plans and specifications to EMWD for approval. The project landscape architect must confirm with EMWD that the plans have been approved by EMWD and submit written proof of approval by EMWD prior to the City approving the final Landscape Plans. Until the final landscape plan has been approved by the City of Perris, the maintenance areas depicted cannot be accepted by the City for maintenance. The developer shall coordinate both reviews to ensure acceptability of plans by both EMWD and the City of Perris, prior to approval by either agency.
h. Landscape Weed Barrier - Weed cloth with a minimum expected life of 10-years shall be required under all gravel, rock, or cobble areas. i. Wire Mesh and Gravel at Pull Boxes- Provide wire mesh and gravel layer within 963

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
valve boxes to prevent rodent intrusion.
j. Concrete Maintenance Band at Medians and Mortar Cobble turn Land – Provide 12” wide concrete maintenance band (safety edge) around entire median.

At turn pockets provide mortared cobble creek bed, round stone sized 6” to 12”. k. Perimeter Walls Graffiti Coating – Provide anti-graffiti coating at all perimeter walls. Acceptable products shall include Vitrocem Anti-Graffiti Coating or equal. l. Slopes 3:1 Maximum - Any proposed slope will not exceed a 3:1 ratio. Slopes exceeding a 3:1 ratio shall require construction of appropriate reinforcing garden walls, to be located onsite.

4. Landscape Inspections - The project applicant shall inform the on-site project manager and the landscape contractor of their responsibility to call for only “OFFSITE” landscape and irrigation inspections at the appropriate stages of construction.

Inspections shall be scheduled at least two-working days (Monday through Friday) prior to actual inspection. Contact Public Works Special Districts at (951) 657-3280 to schedule inspections.
• Inspection #1 - Trenches open, irrigation installed, and system pressurized to 150 PSI for four hours.
• Inspection #2 - Soil prepared, and plant materials positioned and ready to plant.
• Inspection #3 – Landscaping installed, with all equipment and irrigation system fully operational.
• Inspection #4 – A joint inspection with the Development Inspector and LMD Inspector and Applicant to request for “Start of 1 year Maintenance Period” submitted, with all required turn-over submittal items provided to Public-Works Special Districts Division. The applicant shall be responsible for ensuring that a 6-month reserve has been secured for the site prior to the City assuming maintenance responsibilities. A site will not be granted the Start of the 1 Year Maintenance Period if there is not adequate funding for the City to assume maintenance responsibilities the following year. • Inspection #5 (Turn-Over) – On or about the one-year anniversary of Inspection #4, Developer shall call for an inspection to allow the City to review and identify any potential irrigation system defects, dead plants, weed, debris or graffiti; stressed, diseased, or dead trees; mulch condition, hardscape or other concerns with the landscape installation; 964

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
or to accept final turn over of the landscape installation. At his sole expense, the Developer shall be responsible for rectifying system and installation deficiencies, and the one-year maintenance period shall be extended by the City until all deficiencies are cured to the satisfaction of the City. If in the opinion of the City’s Landscape Inspector the landscape installation is in substantial compliance with the approved landscaping plans, the irrigation and communication system is functioning as intended, and the landscape installation is found to be acceptable to the City, then the Inspector shall recommend to the City’s Special District Coordinator to accept turn-over of water and electrical accounts, wi-fi communication contracts and the entire landscape installation.

5. One Year Maintenance and Plant Establishment Period - The applicant will be required to provide a minimum of a one (1) year maintenance and plant establishment period, paid at the sole expense of applicant. This one-year maintenance period commences upon the successful completion of Inspection #4 discussed above, and final approval by the City. During this one-year period the applicant shall be required to maintain all landscape areas free of weeds, debris, trash, and graffiti; and keep all plants, trees, and shrubs in a viable growth condition. Prior to the start of the one-year maintenance period, the Developer shall submit a weekly Landscape Maintenance Schedule for review and approval by the City’s Special Districts Division. The City shall perform periodic site inspections during the one-year maintenance period. The purpose of these periodic inspections is to identify any and all items needing correction prior to acceptance by the City at the conclusion of the one-year maintenance period. Said items needing correction may include but are not limited to replacement of dead or diseased plant materials, weeding, replenishment of mulches, repair of damaged or nonfunctioning irrigation components, test of irrigation controller communications, etc.

During this period, the City shall begin the annual assessment of the benefit zone in preparation for the landscape installation turnover to City maintenance staff.

6. Street/Off-Site Improvements - The applicant shall submit street improvement plans, accompanied by the appropriate filing fee to the City Engineering Department. Details of treatments off-site improvements, including lighting shall meet both the City Engineer’s Design Guidelines, and the additional requirements of the Engineering and Special Districts Division. Components shall include, but not be limited to:
a. Street Lighting - If Street lighting is required, lighting shall meet the type, style, color and durability requirements, necessary for energy efficiency 965

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
goals, maintenance and longevity of improvements of the City Engineer’s Office. As determined by the City, new streetlights may be required to be deeded to City of Perris, and not SCE. Streetlights deeded to City of Perris shall be constructed per LS-3 account billing standard, which shall include an individually metered pedestal for streetlights.
b. Acceptance By Public Works Special Districts Division - Lighting District facilities required by the City Engineer’s Office shall be installed and fully operational and approved by final inspection by the City Engineer’s Office, and the City’s Consulting Traffic Signal Inspection Team (Riverside County TLMA) at (951) 955-6815. Prior to acceptance for maintenance of “Off-site” traffic signal and lighting facilities by the Public Works Special Districts, the developer shall contact the Public Works Special Districts Division at (951) 657-3280 to schedule the delivery of all required turn-over submittal items. Prior to acceptance into Lighting District 84-1, coordinate turn-over information pertaining to Street Lights, and Traffic Signal Electrical/SCE Service Meters with Wildan Financial Services, the City’s Special Districts Consulting Firm at (951) 587-3564. (i.e. Provide electrical meter number, photo of pedestal, and coordinate “request for transfer of billing information” with SCE and City for all new service meters). Developer shall pay 18-month energy charges to the City of Perris for all off-site street lighting. Call Wildan Financial Services, Inc. for amount due, and to obtain receipt for payment. Obtain and provide a clearance form from Riverside County TLMA indicating completion of all punch list items from traffic signal construction. Submit one large format photocopy of Traffic Signal as-built plans and timing sheets.

7. Water Quality Management Plans - The applicant shall submit a Preliminary and Final WQMP, accompanied by the appropriate filing fee to the Planning Department and City Engineering Department, respectively. Details for treatment control facilities shall meet both the Riverside County WQMP Design Guidelines, and the additional requirements of the Special Districts Division intended to reduce long term maintenance costs and longevity of improvements. Components shall include, but not be limited to:
• Storm Drain Screens - If off-site catch basins are required by the City Engineer’s Office, connector pipe screens shall be included in new catch basins to reduce sediment and trash loading within storm pipe. Connector pipe screens shall the type, style, and durability requirements of the Public Works Special Districts Division.
• WQMP Inspections - The project applicant shall inform the on-site project 966

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
manager and the water quality/utilities contractor of their responsibility to call for both “ON-SITE” and OFF-SITE” WQMP Inspections at the appropriate stages of construction. Contact CGRM at (909) 455-8520 to schedule inspections.
• Acceptance By Public Works Special Districts Division - Both on-site and off-site flood control/water quality facilities required for the project, as depicted in the Final WQMP, shall be installed and fully operational, and approved by final inspection by the City’s WQMP Consultant, CGRM. The Developer shall obtain a final Clearance Letter from CGRM indicating compliance with all applicable Conditions of Approval for the approved WQMP. The developer shall deliver the same to the Public Works’ Special Districts Division. In addition, prior to acceptance by the City, the developer shall submit a Covenant and Agreement describing on-going maintenance responsibilities for on-site facilities per the approved WQMP, to the Public Works Special Districts Division. The Public Works Districts Division will review and approve the Covenant and Agreement. The City shall record the same with the Riverside County Recorder’s Office, and the recorded instrument shall be returned to the City Clerk of the City of Perris for filing.

8. Flood Control District #1 Maintenance Acceptance. Flood Control District facilities required by the City Engineer’s Office shall be installed and fully operational, and approved by final inspection by the City Engineer’s Office. Prior to acceptance for maintenance of “Off-site” flood control facilities by the Public Works Special Districts Division the developer shall contact the Public Works Special Districts Division at (951) 657-3280 to schedule the delivery of all required turn-over submittal items including as-built storm drain plans in electronic PDF format, one large format photo-copy of as-built plans, storm drain video report in electronic format, and hardcopy of video report with industry standard notations and still photos made during video runs (i.e. facilities sizes, off-sets or damage, facility type, dirt and debris, etc.). The flood control facilities shall be turned over in a condition acceptable to the City, and the developer shall make all necessary repairs and perform initial maintenance to the satisfaction of the City.

9. Assessment Districts. PRIOR TO FINAL MAP RECORDATION the developer shall annex into the special districts, posting an adequate maintenance performance bond to be retained by the City as required by the Public Works Department. The applicant shall deposit $5,250 per district, $15,750 total due. Payment is to be made to the City of Perris, and the check delivered to the City Engineer’s Office. Payment shall be accompanied by the 967

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
appropriate document for each district indicating intent and understanding of annexation, to be notarized by property owner(s):
• Consent and Waiver for Maintenance District No. 84-1 – New street lighting proposed by the project, as determined by the City Engineer
• Consent and Waiver for Landscape Maintenance District No. 1 – New off-site parkway landscape by the project on Mountain Ave., Mc Pherson Rd., and David Jones Rd.
• Petition for Flood Control Maintenance District No. 1 -For Off-site Flood Control Facilities proposed by the project, as determined by the City Engineer.
• Original notarized document(s) to be sent to:

Daniel Louie
Wildan Financial Services
27368 Via Industria, #200
Temecula, CA 92590
a. Prior to final map recordation or final certificate of occupancy the developer shall annex into the aforementioned districts, posting an adequate maintenance performance bond to be retained by the City as required by the City Engineer. Upon receipt of deposit and Consent and Waiver Forms, the developer shall work with City to meet all required milestones for annexations.
i. City prepares the Engineer’s Reports which includes a description of the improvements to be maintained, an annual cost estimate and annual assessment amounts.
ii. Reports are reviewed and approved by the property owner. The assessment ballots will be based on these Reports.
iii. The Reports and corresponding resolutions are placed, for approval, on the City Council Meeting Agenda. City Council action will include ordering the assessment ballots and setting a Public Hearing for no sooner than 45 days.

Property owner attendance at this City Council Meeting is not required. iv. The assessment ballots are sent to the property owner and are opened by the City Clerk at the close of the Public Hearing. With a “YES” vote by the 968

Conditions of Approval
DPR 22-00014
Date: 8/23/2024

CITY OF PERRIS

PUBLIC WORKS DEPARTMENT
property owner the City Council can move forward with the Resolution that Confirms the Annexation. Property owner attendance at this Public Hearing is not required.
v. Confirmation by the City Council completes the annexation process, and the condition of approval has been met.

END OF CONDITIONS
969

CITY OF PERRIS

COMMUNITY SERVICES
227 North “D” Street, Perris, CA 92570 Tel: (951) 435-7220 www.cityofperris.org MEMO
Date: October 16, 2023
To:

From:

Cc:

Subject:

Mathew Evans, Project Planner
Sabrina Chavez, Director of Community Services
Arcenio Ramirez, Assistant Director of Community Services Arturo Garcia, Parks Supervisor
Joshua Estrada, Parks Coordinator
Development Plan Review 22-00014, PDO 22-00512, TTM 37907 - A Planned Development to subdivide 12.80 acres into 91 single-family lots (7.1 dwelling units/acre) and two (2 lettered lots located at the northwest corner of “A” Street and Metz Road within the R-6,000 zone. The Project includes a 2,020 sq. ft. recreational building with community amenities. The merchant home building is proposing three (3) architectural styles (Craftsman, Tuscan, and Spanish) ranging from 2,381 sq. ft. to 2,780 sq. ft. – Comments Community Services Staff reviewed DPR 22-00014, PDO22-00512,TTM 37907 and offer the following Conditions of Approval:
☒ Ordinance Number 953 F.1-7 specifies that whenever a specific plan, tentative tract map, residential tentative parcel map, or multi-family residential development proposal is submitted to the Development Services Department, it must be accompanied by a written statement from the applicant stating their intention to dedicate land to City, pay fees in lieu thereof, or a combination of both for park and recreational purposes. If the developer desires to dedicate land for this purpose, he shall first consult with the City Department of Community Services and Planning as to the appropriate area to be dedicated. Site selection and screening criteria and park unit classification is required and such areas as may be proposed to be dedicated shall be shown on the specific plan, tentative tract map, residential parcel map, or multi-family project site plan as submitted. No such statement is included with this application.
91 Single family lots x 4.49 persons per household = 408.59 Dedication requirements is 5 acres per 1,000 residents = 200 408.59 Persons per household/200 = 2.04 acres
970

CITY OF PERRIS

COMMUNITY SERVICES
227 North “D” Street, Perris, CA 92570 Tel: (951) 435-7220 www.cityofperris.org ☒ The map or site plan for this project does not show the location of the proposed parkland dedication to City.
☐ The proposed parkland dedication is less than the amount of land required to be dedicated (5 acres, 1000 residents). ______ acres are required, but the proposed parkland dedication is only _____ . The developer/subdivider must pay fees for the valueofanyadditional land thatotherwisewould havebeen required tobededicated. ☐ The proposed parkland falls below the minimum size for a __5.0 acre___ park. ☐ The proposed parkland liesinafloodplain/floodwaywhichimpacts theavailablearea for development of parkimprovements.

The following terms are recommended:
☒ The Other: The household size has increased to 4.49 persons per household in Perris (2020 Census). This number should be used to calculate the park acreage required to meet the requirement. Facilities ineligible for park credit include landscaped area edges, medians, subdivision entries, lakes and streams, or other water features, paseos, greenbelts, trails, walkways, and other similar features that are used primarily as transportation corridors and are not destinations in and of themselves, and privately owned facilities (parks, community centers) which are smaller than four (4) acres.

Development Impact Fees
☒ The Project is subject to payment of Residential Park Development Impact Fees. ☐ The Project is subject to payment of Industrial Park Development Impact Fees. ☐ This Project is subject to payment of Public Art Development Impact Fees.

Special Districts
☒ The project shall annex into the Community Facilities District No. 2018-02 (Public Services)
☒ The project shall annex into the Community Facilities District for Parks Maintenance. 971

SRC COMMENTS
* * * BUILDING & SAFETY * * *
Planning Case File No(s): DEVELOPMENT PLAN REVIEW #22-00014, PDO22-0512 & TTM Case Planner: Nathan Perez 951-943-5003 ext. 279
Applicant: Jo Howard
Location: Off of West Metz Road & “A” Street

Project:

Proposal for a Planned development to subdivide 12.80 acres into 91 single-family lots.

APN(s): 311-030-012 and -013
Reviewed By: Jorge Caballero, CBO Date: 04/14/2026

BUILDING AND SAFETY - GENERAL CONDITIONS

1. The applicant shall obtain the required building permit(s) from the building department prior to any construction on the property. All building plans and supporting documentation shall comply with the current adopted California Building Codes and City of Perris Ordinances regulations in effect at the time of building plan submission and fee payment to the Building Department. All Building Department plan submittal and fee requirements shall apply.

2. NOTE: The project must comply with the current adopted California Building Code at the time of the building application. The new 2025 California Building Codes are in effect as of January 1st, 2026, as mandated by the state of California.

Any building plan and fee payment submitted to the building department on or after January 1st, 2026, will be subject to the new updated California Building Code(s).

A. 2025 California Building Code
B. 2025 California Electrical Code
C. 2025 California Mechanical Code
D. 2025 California Plumbing Code
E. 2025 California Energy Code.

F. 2025 California Fire Code
G. 2025 California Green Building Standards Code.

3. The project must comply with the 2025 Green Code (or the most currently adopted Building codes) EV charging station requirements.

4. GREEN BUILDING CODE WASTE REDUCTION (Non-Residential): 972 Including within the building plan submittal documents to the Building Department for plan review, the applicant shall provide a copy of the approved construction waste management plan that:
a. Identifies the materials to be diverted from disposal by efficient usage, reuse on the project, or salvage for future use or sales.
b. Determines if materials will be sorted on-site or mixed. c. Identify diversion facilities where the material collected will be taken. d. Specifies that the amount of materials diverted shall be calculated by weight or volume, but not both.

5. Fire access plans for the entire site (construction stage and final building approach) shall be approved. A fire access plan shall be provided.

6. The residential tract is in a Fire Hazard Severity Zone, and all structures shall comply with the requirements of the California Wildland-Urban Interface Code. Fuel Modification Plans are required.

7. The project shall comply with the accessible requirements of Chapter 11B of the currently adopted Title 24, California Building Code for the complex, recreational areas, community building, community amenities, and the entire site.

8. Include with the building submittal a site plan to indicate the required continuous accessible paved path of travel. The accessible path of travel details shall include the following:
a. Accessible path construction type (Asphalt or concrete). b. Accessible path width.
c. Accessible path directional slope% % and cross slope% %.

9. Prior to the issuance of a grading permit, a fire department access plan shall be submitted to the City of Perris for review and approval. The fire department access plan shall comply with the requirements specified by the City of Perris Guideline for Fire Department Access & Water Requirements for Commercial & Residential Development, and the California Fire Code, Chapter 5.

10.Prior to the issuance of a grading permit, evidence of sufficient fire flow shall be calculated and shall be provided to the City of Perris. The City of Perris Building and Fire Marshal Water Availability/Fire Flow Form shall be utilized.

11.All required fire hydrants shall be installed and operational prior to building construction.

All fire hydrants shall remain operational during construction. NOTE: Fire hydrants shall be at least 40 feet from the building.

12.The building shall be provided with an automatic fire sprinkler system in accordance with NFPA

13. Construction plans shall be submitted to the City of Perris for review and approval prior to installation.
973

14. The Fire Department Connection (FDC) for the fire sprinkler system shall be located within 100 feet of a public fire hydrant. The fire hydrant will be on the same side of the street. A vehicle access roadway/approach shall not be placed between the FDC and the fire hydrant.

15. Prior to construction, a temporary address sign shall be posted and be clearly visible from the street.

16. If the roads/streets are proposed to be private roads, then specific fire lane requirements will be imposed. Please indicate if the development will have private roads.

17. Main access gates and emergency access shall be provided with Knox boxes for rapid entry of emergency services.

PRIOR TO THE ISSUANCE OF THE BUILDING PERMIT

1. The following items shall be completed and/or submitted as applicable – prior to the issuance of building permits for this proposed project.

A. Precise grading plans shall be submitted and approved B. Rough grading shall be completed.

C. Compaction must be certified
D. The Pad elevations must be certified
E. The rough and finished grade must be inspected and signed off

FIRE CONDITIONS

1. Fire Conditions will be provided by Dennis Grubb and Associates 974
Attachment 2
Ordinance No. (next in order) adopting the
Planned Development Overlay and Zone 22-
05152
975
01006.0005 2194687.1
ORDINANCE NUMBER (Next in Order)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

PERRIS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

APPROVING PLANNED DEVELOPMENT OVERLAY (PDO) ZONE
22-05152 TO REZONE THE PACIFIC LANTANA PROJECT AREA
CONSISTING OF 12.8 NET ACRES OF RESIDENTIAL R-6,000 TO
THE RESIDENTIAL R-6,000 PLANNED DEVELOPMENT OVERLAY
ZONE (R-6,000 PDO) TO FACILITATE THE CREATION OF A 91-LOT SUBDIVISION AND CONSTRUCTION OF A 91-UNIT SINGLEFAMILY RESIDENTIAL DEVELOPMENT LOCATED NORTH OF METZ ROAD BETWEEN MCKIMBALL ROAD AND “A” STREET,

BASED UPON THE FINDINGS PROVIDED HEREIN AND SUBJECT
TO CONDITIONS OF APPROVAL.

WHEREAS, the project applicant, Anthony Arnest, on behalf of Pacific Communities Builder, Inc. (“Applicant”) requests to subdivide a 12.8 net acre property, identified as Assessor’s Parcel Numbers 311-030-012 and 311-030-013, located within the Residential R6,000 Zone designation to facilitate the creation of 91 residential lots for the construction of a development consisting of 91 single-family detached residential units located north of Metz Road between McKimball Road and “A” Street, known as the Pacific Lantana project, and requests to have the Planned Development Overlay Zone applied to the development (“Project”); and
WHEREAS, the Applicant submitted an application for a Planned Development Overlay Zone (PD) 22-05152, Tentative Tract Map 22-05153 (TTM 37907), and Development Plan Review (DPR) 22-00014 for consideration of the Project; and WHEREAS, the proposed PD 22-05152, TTM 37907, and DPR 22-00014 are considered a "project" as defined by the California Environmental Quality Act ("CEQA"); and WHEREAS, pursuant to CEQA and State CEQA Guidelines, an Initial Study (“IS”) was prepared for the proposed Project and, based upon review thereof by the City as lead agency, a Notice of Intent to adopt a mitigated negative declaration was published on May 22, 2026, in accordance with CEQA Guidelines Section 15072, and Mitigated Negative Declaration No. 2398 (the “MND”) was prepared for the Project and was publicly reviewed for a thirty (30) day period in accordance with CEQA, from May 22, 2026 through June 22, 2026; and WHEREAS, during the public comment period, five (5) public comments were received.

The public comments received during the public review period did not warrant or result in any “substantial revision,” within the meaning of CEQA Guidelines Section 15073.5, to the MND.

Although not required by CEQA, in the interests of thoroughness and transparency, responses to the public comments received have been prepared and included in the Final MND. No “substantial revision” of the MND has been made in response to the comments or otherwise, and therefore no recirculation is required pursuant to CEQA Guidelines Section 15073.5. Responses to the 976
01006.0005 2194687.1
comments have been added to Appendix H of the Final Mitigated Negative Declaration, and none of the comments raised any environmental concerns that have not been addressed in the Initial Study/Mitigated Negative Declaration. There is no substantial evidence in light of the whole record before the City, including the public comments received, that the project may have a significant effect on the environment which cannot be mitigated or avoided, and therefore no EIR is required pursuant to CEQA Guidelines Section 15073.5; and WHEREAS, the Riverside County Airport Land Use Commission (“ALUC”) conducted a hearing on August 11, 2026, to consider the Project’s consistency with the D (Flight Corridor Buffer) Zone and determined that the Project is consistent with the March Air Reserve Base/Inland Port Airport (MARB/IPA) Land Use Compatibility Plan; and WHEREAS, Chapter 19.59 (Planned Development Overlay Zone) of the Perris Municipal Code (“PMC”) authorizes the City to approve, conditionally approve, or deny requests for a Planned Development Overlay Zone; and
WHEREAS, a duly noticed Planning Commission public hearing was held on July 15, 2026 and September 2, 2026, for the Project, at which time all interested persons were given full opportunity to be heard and to present evidence. Following the hearing, on September 2, 2026, the Planning Commission, by a vote of 4-0 with one abstention, approved Planning Commission Resolution 26-14, recommending adoption of the MND and approval of the Project to the City Council subject to conditions of approval; and
WHEREAS, on September 29, 2026, the City Council conducted a duly noticed public hearing on the Project, at which time all interested persons were given full opportunity to be heard and present evidence; and
WHEREAS, following the hearing, on September 29, 2026, the City Council adopted Resolution No. (Next in Order), adopting the MND with respect to approval of Tentative Tract Map 22-05153 (TTM 37907) and Development Plan Review (DPR) 22-00014 and approving Tentative Tract Map 22-05153 (TTM 37907) and Development Plan Review (DPR) 22-00014, subject to conditions of approval and contingent upon adoption and effectiveness of this Ordinance; and
WHEREAS, prior to taking action, the City Council has heard, been presented with, and/or reviewed all of the information and data that constitutes the administrative record for the abovementioned approvals, including all oral and written evidence presented to the City by members of the public and City staff during all Project meetings and hearings; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. 977
01006.0005 2194687.1
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PERRIS does ordain as follows:

Section 1. Recitals. The above recitals are all true and correct and are incorporated herein by this reference as findings of fact.

Section 2. CEQA Findings. The City Council finds as follows with respect to the IS/MND for the Project (MND 2398) (Attachment 1):

A. The City Council has considered the whole administrative record, including the IS/MND together with the comments received during the public review process and the responses thereto contained in the Final IS/MND The City Council has also considered whether the Project will result in a safety hazard or noise problem for persons using the March Air Reserve Base/Inland Port Airport as well as the Perris Valley Airport or for persons working in the Project area, and finds that it will not. The findings in this Section 2 are made on the basis of the whole administrative record.

B. The IS/MND has been prepared and considered in compliance with CEQA and contains all required contents pursuant to CEQA Guidelines Section 15071.

C. With the imposition of the mitigation measures set forth in the Mitigation Monitoring and Reporting Program (which is included in the Final IS/MND), there is no substantial evidence that the Project will have a significant effect on the environment. Said mitigation measures have been made enforceable conditions on the Project, as they have been included in the Project Conditions of Approval attached hereto as Attachment 2.

D. The IS/MND reflects the independent judgment and analysis of the City as lead agency.

E. The location and custodian of the documents or other material which constitute the record of proceedings upon which the City Council’s decision set forth in this Ordinance is based is as follows: City of Perris Planning Division, 135 N. D St., Perris, CA 92570.

Section 3. Planned Development Overlay Zone 22-05152 Findings. The City Council finds, with respect to PD 22-05152, that:

1. The proposed project is a group of lots having a total area of at least two acres, but not more than 75 acres, and the land on which the planned unit overlay is applied is contiguous and under the development control of the applicant.

The project site is 12.8 net acres in size, which is larger than the two (2) acre minimum and less than the 75-acre maximum. Further, the Project site is contiguous and is under the development control of the Applicant.

2. The proposed mix of land uses is in keeping with the provisions of PMC Section 19.59.030.

The proposed project is larger than two-acres and is not more than 75-acres as required per 978
01006.0005 2194687.1
the provisions of PMC Section 19.59.030 (Planned Development Overlay Zone, - Qualifications for Eligibility).

3. The proposed project is well designed and will create a superior environment than could otherwise be achieved by strict application of the underlying conventional zone.

The proposed Project creates two open space parcels, including one (1) 9,210 square-foot parcel for a water detention basin and a 29,461 square-foot central open space parcel for general recreation. The Planned Development Overlay Zone allows flexibility from the underlying R-6,000 development standards only to the extent shown in the Project site plan, tentative tract map, development standards table, and conditions of approval.

Specifically, the PD Overlay Zone approval permits residential lot sizes ranging from 3,769 square feet to 6,713 square feet, lot widths ranging from 47 feet to 52 feet, lot depths of approximately 80 feet, and the setback standards proposed in the Project site plan, including an 8-foot front yard setback to the primary building, a 20-foot garage setback, a 5-foot side yard setback, a 6-foot street side yard setback, and a 15-foot rear yard setback.

Nothing less restrictive or more expansive than those approved ranges and standards is permitted by the PD Overlay Zone approval unless further reviewed and approved by the City in accordance with the Perris Municipal Code. Without the application of the PD Overlay Zone, a minimum 6,000 square foot residential lot area requirement would apply, and the aforementioned open space areas would not be preserved or made available to serve the aforementioned purposes. The PD Overlay Zone assures the creation of a Homeowners Association that will be required to maintain these open spaces and recreation areas in perpetuity, thus complying with this requirement. A Condition of Approval has been included requiring recordation of a covenant running with the land to ensure that the aforementioned open space parcels shall be reserved and maintained as open space associated with the Project in perpetuity, which covenant shall not be removed without City Council approval.

4. The project incorporates appropriate amenities necessary to create and maintain a desirable environment for residents and/or employees (e.g., recreation buildings or facilities, guest parking, common area landscaping, enhanced architectural standards, etc.).

The proposed gated community project includes two (2) open space parcels, including one water detention basin and one recreation area for a clubhouse, swimming pool, and spa, a children’s play area/tot-lot, a half basketball court, and a dog park. Project production units (homes) will be designed to meet the standards outlined in the City’s Residential Design Guidelines and will include various architectural enhancements for each product design.

5. The proposed planned development is harmonious with surrounding development and does not create internal incompatibilities due to improper design, allowed land uses, or density/intensity of development.

The Project location is surrounded by existing residential developments and vacant land zoned for future residential development on all sides, which makes this residential Project 979
01006.0005 2194687.1
harmonious with surrounding development. The Project is also internally compatible as a purely single-family detached residential development.

6. The proposed circulation system is adequate to carry the anticipated traffic volume.

The proposed circulation system utilizes existing streets surrounding the Project site including street improvements designed to help with circulation around the site and within the existing neighborhood. The proposed circulation system as described in the Traffic Study, which was reviewed and approved by RK Engineering (traffic consultant) on July 8, 2022, concluded that the proposed street improvements will be adequate to carry the anticipated traffic volume. Furthermore, primary access to the site will be provided from “A” Street, and secondary access will be provided from McKimball Road for egress and fire access only. An interior ring-road system that parallels the perimeter streets and two (2) interior streets are provided for access to each lot within the subdivision.

7. The existing or proposed public infrastructure is suitable to meet the needs of the planned development, and does not create capacity issues in other areas of the community.

The proposed Project, with the conditions of approval, includes extending all improvements and associated services required for the property's development and expanding roadway widths necessary to improve public infrastructure. Additionally, necessary street improvements to both “A” Street and McKimball Road are included in the Conditions of Approval. Thus, the public infrastructure is suitable for meeting the needs of the planned development.

8. The proposed use at the particular location is necessary and desirable to provide a service or facility which will contribute to the general well-being of the neighborhood and to the community.

The proposed residential single-family detached development will provide additional infrastructure to the area, including widening of streets, installation of sidewalks, and additional drainage infrastructure that will improve and contribute to the general wellbeing of the neighborhood and nearby community.

9. The proposed mix of land uses and design of development will not be detrimental to the health, safety or general welfare of persons residing or working in the vicinity, or injurious to property or improvements in the vicinity.

The proposed residential single-family detached development is compatible with the surrounding land-uses and is surrounded on three sides by existing and under construction single-family dwellings, and is designed to be compatible with the surrounding uses with respect to setbacks, height and superior residential design of both the overall project and the individual homes, thus the project will not be detrimental to the health, safety and welfare of persons residing and working within the vicinity.

10. The granting of this permit will not adversely affect the public welfare and will be 980
01006.0005 2194687.1
consistent with the city's general plan, and any other relevant plans of any governmental agency.

The project is located within Planning Area 7 (Westside Residential) of the City’s General Plan, and as proposed, the development will be consistent with the City’s General Plan of Residential (R6,000) with respect to density, height, setbacks and other development standards, and as conditioned, will not adversely affect the public welfare.

Section 4. Adoption of MND for PDO 22-05152. Based upon the foregoing and the entire administrative record including all oral and written statements and reports presented by City staff and members of the public, including, but not limited to, all such statements and reports (including all attachments and exhibits) presented at its public hearing on September 29, 2026, the City Council adopts Mitigated Negative Declaration No. 2398 and the included MMRP, attached hereto as Attachment 1 and incorporated herein by this reference, for Planned Development Overlay (PDO) 22-05152.

Section 5.Approval of PDO 22-05152. Based upon the foregoing and all oral and written statements and reports presented by City staff and members of the public, including but not limited to such statements and reports (including all attachments and exhibits) presented at the City Council’s public hearing on September 29, 2026, the City Council hereby approves Planned Development Overlay (PDO) 22-05152, subject to the Conditions of Approval attached to this Ordinance as Attachment 2 and incorporated herein by this reference.

Section 6. Severability. If any subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional or otherwise unenforceable, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declare that they would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional or otherwise unenforceable.

Section 7. Effective Date. This Ordinance shall take effect 30 days after its adoption.

Section 8. Certification. The Mayor shall sign this Ordinance and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in this regard.

ADOPTED, SIGNED, and APPROVED this ____ day of _______ 2026.

Mayor, Michael M. Vargas
ATTEST:
981
01006.0005 2194687.1
City Clerk, Nancy Salazar

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §

CITY OF PERRIS )
I, Nancy Salazar, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Ordinance Number (Next in Order) was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held the ___ day of _______ 2026, by the following called vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
City Clerk, Nancy Salazar
Attachments: 1. Mitigated Negative Declaration No. 2398 and Mitigation Monitoring and Reporting Program
Due to the size of the files, the documents are available online at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-public-review/-folder462#docan1206_1313_479

2. Conditions of Approval (Planning, Fire, Engineering, Public Works, Community Services, and Building & Safety).
982
Attachment 3
Location/Aerial Map
983
Location/Aerial Map

PROJECT
SITE
“A” Street
E. Metz Road
Nuevo Road
984
Attachment 4
Existing and Proposed Zoning Maps
985
Existing Zoning Map

PROJECT
SITE
Nuevo Road
986
Proposed Zoning Map
987
Attachment 5
MARB/IPA ALUCP Map
988
MARB/IPA ALUCP Map
Zone “D” – Flight Corridor Buffer
Project Site
989
Attachment 6
Project Plans (Site Plan, Plotting Plan,
Building Elevations, Renderings, Conceptual
Landscape Plan)
Due to the size of the files, Project Plans
(Site Plan, Proposed Plan Mix, Floor Plans,
Building Elevations, Renderings, Landscape
Plans, Wall and Fence Plans, Color and
Material Sample Sheet, etc.) are available
online at:
https://www.cityofperris.org/departments/
developmentservices/planning/environmentaldocuments-for-public-review/-folder462#docan1206_1313_479 990

6.1 P a c i f i c L a n t a n a a t P e r r i s S I N G L E - F A M I L Y D E T A C H E D P E R R I S , C A L I F O R N I A P A C I F I C C O M M U N I T I E S B U I L D E R, I N C. 1000 Dove Street, Suite 300
Newport Beach, CA 92660
T e l : ( 949 ) 6 6 0 - 8 9 8 8
F a x : ( 949 ) 2 5 3 - 0 6 8 3 06/17/2024

D E S I G N S U B M I T T A L P H A S E DAY AND NIGHT PERSPECTIVES - DAY VIEW 991
992
993
994
T T T 51' X 29'
Office
Men
Women
Kitchen
Veranda
51' X 15'
Multipurpose Rm.

StorageStorage
Jan.

Coffee Bar
2 Under Counter Fridges
Upper Cabinet Microwave
Stor.

Fire Place
wh
Decorative Beam
Decorative Beam
Decorative Beam
Decorative Beam
Decorative Beam
Decorative Beam
T
T
T
T
T
T
74 92
75 76
77 78 79 80 81
7 8 9 10
11 12 13
14 15
16 22
21 20
19 18
17 28
24 23
31 30
29 32
33 34 35 36 37 38 39 40 41 42
43 44
56 57
58 59
60 61
62 63
45 46
47 48
49 50
68 67
66 65 64
69 70
71 91
90 89 88 87
6 4
5 1
2 3
86 85 84
83 82
72 73
54 55 53 52 51

E STREET

D STREET
A St NW LOOP
A St SE LOOP

B STREET
A St NW LOOP A St NW LOOP
A St SE LOOP
A St SE LOOP
RETAINING WALL 2.5'-4.5'
3,951 SF
3,957 SF
3,807 SF
3,776 SF 3,776 SF 3,776 SF 3,782 SF
3,878 SF
3,878 SF
3,878 SF
4,070 SF
3,801 SF 3,782 SF 3,782 SF 3,782 SF 3,782 SF
4,050 SF
3,988 SF
29,461 SF
3,829 SF
3,971 SF
3,975 SF
3,978 SF
3,982 SF
4,042 SF
3,878 SF
3,878 SF
3,776 SF 3,776 SF 3,776 SF 3,776 SF 3,769 SF
3,830 SF
3,807 SF
3,985 SF
3,989 SF
3,993 SF
4,119 SF
3,942 SF 3,942 SF 3,942 SF 3,942 SF 4,001 SF 4,189 SF
6,673 SF
3,942 SF 3,942 SF 4,169 SF
4,050 SF
3,991 SF
4,170 SF
3,769 SF
3,774 SF 3,774 SF 3,774 SF 3,774 SF
3,797 SF
3,794 SF
3,769 SF 3,761 SF 3,777 SF
3,878 SF
3,878 SF
3,878 SF
3,925 SF 3,925 SF 3,925 SF 3,925 SF 3,925 SF 3,925 SF 4,065 SF 4,327 SF 6,041 SF
3,993 SF
3,947 SF
3,878 SF
3,975 SF
3,878 SF
5,736 SF
4,181 SF 4,013 SF
3,804 SF 3,777 SF 3,777 SF 3,777 SF 3,777 SF
4,162 SF
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄

CLUBHOUSE
3,780 SF
3,807 SF
LOT A
LOT A
LOT A
LOT E
LOT A
LOT D
LOT B
LOT J
LOT I
LOT H
Women
Men
Storage
RETAINING WALL 2.5'-3.5'
LOT K
4,356 SF
3,964 SF
3,968 SF

C STREET
LOT C
27 26
25 M.B. 173/100

SOUTH HALF
M.B. 1 / 24

DE LINES SUBDIVISION
LOT 6
LOT 5
P1BR P2AR P1B
P1BR
P2B P1AR
P3BR
P2AR
P2A P1BR P3A
P1A P3AR P1BR
P2A P1BR P3A P3BR
P2A
P1AR P2B P1B P1AR
P3B P3B P1AR P2B P2A P2BR
P1AR P2B P3A P2AR
P3AR
P3BR P3A P3A P2A
P3BR
P2AR
P3B
P1B
P2B
P2AR P2AR
P1AR
P3A P2BR
P1A P2BR
P1B P1AR P3B
P3B P1AR P2AR
P3BR P1BR
P2A P3A
P2BR P3A
P2BR
P2B P3AR P1B
P1B P3AR
P3A P3BR P1A
P2BR P1A P3BR P3A P2AR
P1B P2AR
P2BR P1A P2BR
P1A P3BR P2BR P1B P2AR P3A
P3B P3AR
P3AR P3B

TREE PLANTING LEGEND

SYMBOL BOTANICAL/COMMON NAME SIZE WUCOLS

GATED ENTRY STREET TREECOMMON AREA OPEN SPACE TREEA STREET TREEMETZ ROAD TREEMCKIMBALL ROAD TREESTREET TREE 61 16
27988
1418
31 1210
STD.

PALO VERDE 'DESERT MUSEUM' 36" BOX L
PALO VERDE20' HIGH
ARBUTUS 'MARINA' 36" BOX M
STRAWBERRY TREE STD.
20' - 25' HIGH
STD.

PALO VERDE 'DESERT MUSEUM' 36" BOX L
PALO VERDE20' HIGH
STD.

SCHINUS MOLLE 48" BOX L

CALIFORNIA PEPPER
40' HIGH
STD.

SCHINUS MOLLE 36" BOX L
CALIFORNIA PEPPER40' HIGH
PHOENIX DACTYLIFERA 20' BTH L
DATE PALM STD.
20' -40' HIGH
STD.

QUERCUS VIRGINIANA 48" BOX L

SOUTHERN LIVE OAK
20' HIGH
STD.

SCHINUS MOLLE 36" BOX L

CALIFORNIA PEPPER
40' HIGH
STD.

TIPUANA TIPU 36" BOX
M

TIPU TREE
40' HIGH
STD.

QUERCUS ILEX 36" BOX L
HOLLY OAK20' HIGH
STD.

LAGERSTROEMIA INDICA 'NACHEZ' 36" BOX
M

CREPE MYRTLE
20' HIGH

FRONT YARD SHADE TREE
ARBUTUS 'MARINA' 36" BOX M
STRAWBERRY TREE STD.
20' - 25' HIGH
77 NORTH
SCALE: 1" = ' - 0" 30
0 30 60 90 120
DANA POINT CA 92629
34197 COAST HWY SUITE 200
(949) 443-1446
SUMMERS/MURPHY & PARTNERS, INC. PACIFIC LANTANA |
E
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Pacific Communities | Perris, CA |
Preliminary Landscape Plan
June 16, 2026
| OVERALL Plan

METZ ROAD
'A' STREET

MCKIMBALL ROAD
LEGEND

1. ENTRY DRIVE

2. SIGN MONUMENT WALL

3. RESIDENTIAL UNITS

4. NOT USED

5. CLUB HOUSE / SALES OFFICE6. PICNIC PAVILION W/ BBQ7. ENHANCED CONCRETE UNIT

CROSS WALK PAVING

8. MEDIAN / CORNER SPECIMEN
TREE

9. EVERGREEN STREET AND

BACKDROP TREE

10. CANOPY PALM TREE11. ENHANCED VEHICULAR

CONCRETE UNIT PAVER

12. RECREATION POOL13. SPA POOL14. CHILDREN PLAY AREA15. DOG PARK16. HALF BASKETBALL COURT17. HEDGE PLANT MATERIAL TO

SCREEN THE WALL

18. BENCH19. CBU MAILBOX UNITS

20. EVA MODULAR PRECAST

CONCRETE PAVING WITH

PRE-CUT SYNTHETIC LAWNINSET

21. EVA ENTRY WITH SLIDING

TUBE STEEL GATE

22. DRAINAGE BASIN
1 2
3 5
6 7
8 9
10 11
12 13
14 15
16 TOTAL LANDSCAPE AREA: 1.83 ACRES OR 79,835 SQ. FTTOTAL SITE AREA: 13.6 ACRES OR 591,239 SQ. FT.

PERCENTAGE OF LANDSCAPE AREA: 13%

PERCENTAGE OF LANDSCAPE AREA
3 3
3 3
3 L-1
17 17
17 17 17 17 17
18 18 19 18 18 19
18 18
18 18
7 77
7 7
20 21
3 3
22 7
995
996
997
998
999
1000 Dove Street, Suite 300
Newport Beach, CA 92660T e l : ( 949 ) 6 6 0 - 8 9 8 8
F a x : ( 949 ) 2 5 3 - 0 6 8 3
May 28, 2022 Pacific Lantana Single-Family Detached Perris, California Pacific Communities Builder, Inc. 1000 Dove Street, Suite 300 Newport Beach, CA 92660 T e l : ( 949 ) 6 6 0 - 8 9 8 8 F a x : ( 949 ) 2 5 3 - 0 6 8 3 May 28, 2022 Pacific Lantana Single-Family Detached Perris, California Pacific Communities Builder, Inc. RB.2 9'-1"
12'-1" 9'-1"
12'-1"
Recreation BuildingAPPROXIMATE SIZE 2020 Sq. Ft. FOR ARCHITECTS USE ONLY. DIMENSIONS TAKEN TO FACE OF STUD. 12 8 4 12 (RECREATION BUILDING COLOR IS AT PRELIMINARY STAGE AND SUBJECT TO CHANGE.) RB.2 9'-1"
12'-1" 9'-1"
12'-1" LEFT ELEVATION RIGHT ELEVATION Recreation Building APPROXIMATE SIZE 2020 Sq. Ft. FOR ARCHITECTS USE ONLY. DIMENSIONS TAKEN TO FACE OF STUD. Elevations 12 8 4 12 (RECREATION BUILDING COLOR IS AT PRELIMINARY STAGE AND SUBJECT TO CHANGE.) 12 8 4 12 FRONT ELEVATION N S E E REAR ELEVATION (STONE VENEER DESIGN SIMILAR TO THE FRONT ELEVATION APPROACH COULD BE CONSIDERED AS AN OPTION.) E E 1000
Attachment 7
Tentative Tract Map No. 37907
1001
TRACT No. 21131
M.B. 173/100487.0 TB
487.0 TB
487.0 TB
487.0 TB
1485
1485 1485
485.0 FS
74 75
76 77
78 79 80 81
7 8 9 10
11 12 13
14 15
16 22
21 20
19 18
17 28
27 26
25 23
31 30
29 32
33 34 35 36 37 38 39 40 41 42
43 44
56 57
58 59
60 61
62 63
45 46
47 48
49 50
68 67
66 65 64
69 70
71 91
90 89 88 87
6 4
5 1
2 3
86 85 84
83 82
72 73
54 55 53 52 51
92 24
74 75
76 77
78 79 80 81
7 8 9 10
11 12 13
14 15
16 22
21 20
19 18
17 28
27 26
25 24
23 31
30 29
32 33 34 35 36 37 38 39 40 41 42
43 44
56 57
58 59
60 61
62 63
45 46
47 48
49 50
68 67
66 65 64
69 70
71 91
90 89 88 87
6 4
5 1
2 3
86 85 84
83 82
72 73
54 55 53 52 51

E STREET

D STREET
A St NW LOOP
A St SE LOOP

C STREET

B STREET
A St NW LOOP A St NW LOOP
A St SE LOOP
A St SE LOOP
RETAINING WALL 2.5'-4.5'
RETAINING WALL 2.5'-3.5'
4,018 SF
4,018 SF
4,018 SF
4,018 SF
4,045 SF 3,807 SF
3,776 SF 3,776 SF 3,776 SF 3,782 SF
3,878 SF
3,878 SF
3,878 SF
4,070 SF
3,801 SF 3,782 SF 3,782 SF 3,782 SF 3,782 SF
4,050 SF
3,988 SF
29,461 SF
3,829 SF
4,372 SF
4,018 SF
4,018 SF
4,018 SF
4,042 SF
3,878 SF
3,878 SF
3,776 SF 3,776 SF 3,776 SF 3,776 SF 3,769 SF
3,807 SF
3,830 SF
4,018 SF
4,018 SF
4,018 SF
4,141 SF
3,942 SF 3,942 SF 3,942 SF 3,942 SF 4,001 SF 4,189 SF
6,713 SF
3,942 SF 3,942 SF 4,169 SF
4,050 SF
3,991 SF
4,170 SF
3,769 SF
3,774 SF 3,774 SF 3,774 SF 3,774 SF
3,797 SF
3,794 SF
3,769 SF 3,761 SF 3,777 SF
3,878 SF
3,878 SF
3,878 SF
3,925 SF 3,925 SF 3,925 SF 3,925 SF 3,925 SF 3,925 SF 4,065 SF 4,327 SF 6,173 SF
4,068 SF
4,018 SF
3,975 SF
3,878 SF
3,878 SF
5,736 SF
4,181 SF 4,013 SF
3,804 SF 3,777 SF 3,777 SF 3,777 SF 3,777 SF
4,162 SF
ROW
PROP.

ROW
PROP.

PROP.

CURB & GUTTER

EMERGENCY

ACCESS ONLY
7' LANDSCAPE EASEMENT 7'

CURB & GUTTER
PROP.

CURB & GUTTER
PROP.

PROP.

ROW

EDGE AC

EXISTING
ROW

EXISTING
ROW
6' LANDSCAPE EASEMENT

CLUBHOUSE

PERIMETER WALL
PROP. 8' BLOCK
PROP. 8' BLOCK

PERIMETER WALL
3,780 SF
3,807 SF
LOT A
LOT A
LOT A
LOT E
LOT A
LOT D
LOT C
LOT B
LOT J
LOT I
LOT H
LOT K
Women
Men
Storage
215
P
ROFES

IONAL LAND SU
VR
OYE
R
B
RANDON M. BAR
EN
T
T
No. 9040

S AT TE OF CALIFORNIA
PARCEL
TABLE
AREA
PARCEL # AREA (SF)
1 4,042
2 3,878
3 3,878
4 3,878
5 3,878
6 3,878
7 4,169
8 3,942
9 3,942
10 3,942
11 3,942
12 3,942
13 3,942
14 4,001
15 4,198
16 6,713
17 4,141
18 4,018
19 4,018
20 4,018
21 4,018
22 4,018
23 4,018
24 4,372
25 4,045
26 4,018
27 4,018
28 4,018
29 4,018
30 4,018
31 4,068
32 6,173
33 4,327
34 4,065
35 3,925
36 3,925
37 3,925
38 3,925
39 3,925
40 3,925
41 4,013
42 4,181
43 5,736
44 3,975
45 3,878
46 3,878
PARCEL
TABLE
AREA
PARCEL # AREA (SF)
47 3,878
48 3,878
49 3,878
50 4,070
51 3,804
52 3,777
53 3,777
54 3,777
55 3,777
56 4,162
57 4,050
58 3,988
59 3,782
60 3,782
61 3,782
62 3,782
63 3,801
64 3,782
65 3,776
66 3,776
67 3,776
68 3,776
69 3,829
70 3,807
71 3,807
72 3,807
73 3,830
74 4,170
75 4,050
76 3,991
77 3,774
78 3,774
79 3,774
80 3,774
81 3,794
82 3,797
83 3,769
84 3,761
85 3,777
86 3,769
87 3,776
88 3,776
89 3,776
90 3,776
91 3,769

PACIFIC LANTANA
TENTATIVE TRACT MAP NO. 37907

CITY OF PERRIS, CA
95,905 A
4,048 B
2,637 C
14,367 D
14,386 E

STREETS
29,461 92
14,630 G
3,773 H
4,048 I
3,571 J

CLUBHOUSE, BASIN & LANDCAPE
K 137

NOT USED F
1002
1003
Attachment 8
Planning Commission Staff Report Without
Exhibits – Dated September 2, 2026
1004
MEETING DATE: September 2, 2026
SUBJECT: Planned Development (PD) Overlay Zone 22-05152, Tentative Tract Map 22-05153 (TTM 37907), Development Plan Review 22- 00014 (Continued from the July 15, 2026, meeting) – A proposal to consider the following entitlements to facilitate a gated residential development on 12.8 acres, located north of Metz Road between McKimball Road and “A” Street:
1) Planned Development Overlay Zone to allow flexibility from the R-6,000 Single Family Residential development
standards;
2) Tentative Tract Map to subdivide 12.8 acres into 91
residential lots; and
3) Development Plan Review for review of the site plan and building elevations.

Applicant: Anthony Arnest of Pacific Communities.

REQUESTED ACTION: Adopt Resolution No. 26-14 recommending that the City Council adopt Mitigated Negative Declaration No. 2398 and the Mitigation Monitoring and Reporting Program and approve Planned
Development Overlay Zone 22-05152, Tentative Tract Map 22-05153 (TTM 37907), and Development Plan Review 22-00014 to facilitate the construction of a gated 91 detached single-family residential development on 12.8 acres, located north of Metz Road between McKimball Road and “A” Street, based on the findings contained in the Resolution and subject to the Conditions of Approval.

CONTACT: Patricia Brenes, Planning Manager

BACKGROUND
The project has been continued multiple times since October 2024 (October 16, 2024, December 4, 2024, December 18, 2024). Most recently, on July 15, 2026, the Planning Commission unanimously voted to continue the project to the September 2, 2026, meeting.

The 12.8-acre project site is vacant and consists of two (2) vacant parcels located north of Metz Road between McKimball Road and “A” Street. The project site is relatively flat and generally slopes from west to east. The project site is surrounded by single-family residences to the north; single-family residences and vacant land to the west; a 145-unit single-family residential development to the south, currently under construction; and an approved, not-yet-constructed 360- unit multi-family residential development to the east (Exhibit B).

CITY OF PERRIS

P L A N N I N G C O M M I S S I O N

A G E N D A S U B M I T T A L
1005

PROJECT DESCRIPTION
The applicant is requesting approval of a Planned Development Overlay Zone, Tentative Tract Map, and Development Plan Review to subdivide the 12.8-acre site into 91 lots and facilitate construction of a gated, single-family residential development, as summarized below:
• Residential Lots/Units
The proposed 91-lot subdivision consists of lots ranging in size from 3,769 to 6,713 square feet, resulting in a density of 6.71 units per acre. A total of five (5) lettered lots, each comprised of 1.4 acres, are proposed for open space and street dedication. Three (3) two-story floor plans are proposed, ranging from 2,166 to 2,577 square feet. Each residential unit includes up to 5 bedrooms, with some units having the option to convert the ground-level bedroom into a junior accessory dwelling unit (JADU). Each residential unit also includes three full bathrooms, a kitchen, a dining room, a front porch ranging from 45 to 55 square feet, and an attached garage. • Amenities
The project includes 29,461 square feet of recreation area, including a 2,020-square-foot single-story clubhouse/sales office, an activity lawn, a swimming pool and spa, a children’s play area/tot-lot, a half basketball court, a picnic pavilion with BBQ, and a dog park. • Access/Circulation
Primary access to the site will be provided from “A” Street, with secondary access from McKimball Road for egress and fire access only. Both access points will feature stamped concrete, while the primary entrance will include a raised, landscaped center median. A private main-loop road and two (2) interior streets will provide access to each lot within the subdivision. The roadway system will include curbs, gutters, and sidewalks, along with trafficcalming measures such as choked intersections, bulb-out street corners, and on-street parking.

The project site will be secured by a 6-foot-high perimeter block wall with pilasters and automatic gates.

PROJECT ANALYSIS
The table below summarizes the project's consistency with the General Plan, Title 19 - Zoning Code, Title 18 - Subdivisions Code, and the March Air Reserve Base/Inland Port Airport Land Use Compatibility Plan.

CONSISTENCY TABLE
Consistency with the General Plan
The project site is in Planning Area 7 (Westside Residential) of the General Plan, which is primarily residential and makes up 12.6% of the City’s land area. It is bounded by Nuevo Road to the north, the city limits to the west, downtown to the east, and Mapes Road to the south. The project site has a General Plan land use designation of R-6,000, which allows for a maximum density of 7.0 dwelling units per acre. The project proposes a density of 6.71 dwelling units per acre, which complies with the maximum allowable density. Additionally, as proposed, the project is consistent with the following policies of the General Plan:
1006

CONSISTENCY TABLE
• Safety Element:

Policy S-6.1: Ensure new development complies with the development requirements of the AICUZ Land Use Compatibility Guidelines and ALUP Airport Influence Areas for March Air Reserve Base.

Policy S-6.3: Effectively coordinate with March Air Reserve Base on development within its influence areas.
• Housing Element:

Policy 1.2: Promote development within the City that provides a variety of housing types and densities based on the suitability of the land, including the availability of infrastructure, the provision of adequate services, and recognition of environmental constraints.

Consistency with Title 19 - Zoning Code
The project site is zoned R-6,000 – Single Family Residential, which is intended for attached or detached medium-density residential development such as duplexes, condominiums, and townhomes at a density of four (4) to seven (7) dwellings per acre. The proposed residential subdivision proposes a density of 6.71 dwellings per acre with lot sizes ranging from 3,769 to 6,713 square feet. Thus, the project’s density is within the underlying zone's allowable density.

Applying the Planned Development Overlay (PD) Zone will provide flexibility in lot sizes, lot dimensions, and setbacks while promoting high-quality architecture and site design, open space conservation, recreational amenities, and pedestrian connectivity (Exhibit C). Consistent with the intent of the PD Overlay Zone, the project has been designed to provide a superior residential environment through a comprehensive site design that incorporates approximately 1.83 acres of landscaped area, which includes amenities such as a clubhouse/sales office, activities lawn, swimming pool and spa, children’s play area/tot-lot, half basketball court, and dog park. The proposed density is compatible with surrounding development and is not anticipated to adversely affect public health, safety, welfare, comfort, or convenience.

Consistency with Title 18 – Subdivisions
The project proposes a Tentative Tract Map (TTM 37907) to subdivide two (2) vacant parcels consisting of 12.8 acres into 91 lots and five (5) lettered lots for recreational amenities, a detention basin, and private streets(Exhibit F). As proposed, the subdivision meets the minimum standards of the Subdivision Code and lot standards of the R-6,000 Zone with the Planned Development Overlay Zone.

Consistency with the March Air Reserve Base/Inland Port Airport Land Use Compatibility Plan
The project site is located within Zone D (Flight Corridor Buffer) of the March Air Reserve Base Airport Land Use Compatibility Plan, which has no density limitations for residential development (Exhibit D). On August 11, 2026, the Airport Land Use Commission (ALUC) determined the project to be conditionally consistent with Zone D of the MARB/IPA ALUCP. 1007

COMPLIANCE WITH APPLICABLE DEVELOPMENT STANDARDS
The table below summarizes compliance with the Development Standards of the R-6,000 Single Family Residential Zone and Parking Standards, subject to the approval of the Planned Development Overlay Zone development criteria found in Chapter 19.59 of the Zoning Code.

Note: *PD Overlay Zone allows flexibility concerning lot dimensions, and yard requirements as deemed appropriate by the approving authority.

Chapter 19.69 - Parking Standards
Requirements of Section 19.69.020 (b) General Regulations Use Standard – Single Family Required Proposed Consistent Visitor Parking 0.3 – 0.5 Spaces per unit*
(91 units)
46 spaces 90 spaces Yes
Covered Parking 2 garage spaces/unit -
91 units
182 spaces 182 spaces Yes
Total Parking 228 spaces 272 spaces Yes
Total Surplus Parking 44 spaces

COMPLIANCE WITH OTHER APPLICABLE REQUIREMENTS
• Building Elevations/Architecture
The proposed residential units are designed in two architectural styles: Modern Farmhouse and California Coastal. The project includes three floor plans, each consisting of two stories. Building façades will incorporate a variety of materials and colors, including stucco in white, light tan, and gray tones; wood siding ranging from light to dark gray; and stone in light gray, off-white, and tan tones. Architectural enhancements are proposed for homes located on corner lots and for rear yards visible from adjacent rights-of-way, and include shutters on rear and side windows, enhanced foam trim around windows, and decorative roof vents. As conditioned, decorative coach lights are required on all façades. In addition, all exterior doors shall be illuminated by either a decorative coach light or soffit-mounted lighting located beneath the roof eave (Exhibit E).

Development Standards
Residential-6,000 Zone and Planned Development Overlay (PD) Zone* Standard Proposed Consisten
t
Density 4-7 du/ac 6.71 du/ac Yes
Lot
Dimensions
Lot Area
As deemed appropriate for
the proposed use
3,769 to 6,713 sq. ft. Yes
Lot Width 47 - 52 feet Yes
Lot Depth 80 feet Yes
Yard
Standards
Front Yard 20 feet - Primary Building
20 feet – Garage*
*8 feet
20 feet Yes
Side Yard 5 feet 5 feet Yes
Street Side Yard 15 feet combined with 7 ½
feet per side (Two Stories)
*6 feet Yes
Rear Yard 20 feet *15 feet Yes
Private Yards 200 square feet 750+/- sq. ft. Yes
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• Landscaping
The conceptual landscape plan shows the project will provide 79,835 square feet of landscaped area equivalent to 13 percent landscape coverage. A total of 291 trees are proposed throughout the site, of which 222 trees will be 36-inch boxes in size, 69 trees will be 48-inch box in size and 20 feet in height for the street frontages along Metz Road and “A” Street, and 40 feet in height on McKimball Road. The internal streets are lined with approximately one tree per lot/home, each ranging from 20 to 25 feet tall. Both entries to the project site will be enhanced with 50 trees, 48-inch box in size, and 20 feet in height.

Other plant materials proposed throughout the project site include shrubs and ground cover ranging from 1-gallon to 15-gallon and 24-inch box. The developer will provide front-yard landscaping for all units, and rear-yard landscaping will be at the homeowner's discretion (Exhibit E).
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• Perimeter Wall and Fencing
The proposed project will be secured by a 6-foot-high decorative masonry wall with a decorative cap and decorative masonry block pilasters. The project will have two automatic steel gates to secure the property at the primary entrance off “A” Street and a tubular steel gate at the emergency access gate off McKimball Road. Tubular steel fencing will secure the pool area. The dog park is proposed to be enclosed with welded-wire steel fencing.

Staff is recommending the replacement of the dog park fencing with tubular steel fencing to provide consistency in the project's overall fencing design. Internal fencing between lots will consist of 5- to 6-foot-high vinyl fencing (Exhibit E). • Homeowners Association
As conditioned, all project amenities, including common open space areas; the clubhouse; swimming pool and spa; dog park; internal sidewalks and streets; lighting; landscaping, including front yard landscaping; perimeter walls and landscaping, fencing around the swimming pool, dog park, and bioretention area; entry monument; the entry gate kiosk and all other project amenities will be installed by the developer and maintained in perpetuity for the life of the project by a Homeowners Association (HOA).

ENVIRONMENTAL DETERMINATION
An Initial Study was prepared for the project per the California Environmental Quality Act (CEQA), which concluded that all potential significant environmental effects could be reduced to less than significant levels with mitigation measures. In accordance with the California Environmental Quality Act (CEQA), a Notice of Intent to adopt a Mitigated Negative Declaration (NOI) was published with a 30-day public review period starting on May 22, 2026, and ending on June 22, 2026. The NOI was also posted on the City's website and at City Hall and sent to public agencies and property owners within a 300-foot radius of the Project site (Exhibit G). During the 30-day comment period, the City received five (5) comment letters regarding this project:

1. March Inland Port Airport Authority – Noted minor typographical errors, which have been corrected in the Final Mitigated Negative Declaration, and noted that the project should be reviewed by ALUC. ALUC reviewed the project on August 11, 2026, and determined it to be conditionally consistent with the Airport Plan.

2. Riverside County Flood Control District and Water Conservation District (First and Second Letters) - Both letters are generally informational. As requested in the letter, the Applicant will enter a cooperative agreement with the Riverside County Flood Control and Water Conservation District (District) regarding the proposed project-related Master Drainage Plan facilities and obtain an encroachment permit for any construction-related activities within District right-of-way and/or facilities.

3. Riverside County Transit Agency – Provided an acknowledgment of their review of the IS/MND and had no comments.

4. United States Fish and Wildlife Service – Provided information that a burrowing owl protocol survey is required even if construction during the breeding season is avoided. In response, the mitigation measures have been revised to include the survey protocols.

None of the letters raised environmental concerns not already addressed in the IS/MND. Responses to comments have been included in the Final MND (Exhibit H). 1010

PUBLIC HEARING NOTICE
A Notice of Public Hearing for the July 15, 2026, Planning Commission meeting was published in the local newspaper and provided to affected agencies and property owners within 300 feet of the project site (Exhibit N). Because the project was continued to the September 2, 2026, Planning Commission meeting, a separate public hearing notice is not required.

Staff received one (1) comment letter from a Perris resident opposing the rezone from R-6,000 to the R-6,000-PD – Single Family Residential and Planned Development Overlay Zone to allow for more housing. In addition to opposing the rezone, the resident requested that the developer provide single-story homes as a buffer between the proposed project and the existing homes to the north, and construct a walking path around the proposed development (Exhibit I).

In response to the comments, the development provides rear yard setbacks ranging from 20 to 25 feet, consistent with the minimum 20-foot requirement in the R-6,000 Zone. The R-6,000 Zone also permits two-story residences; therefore, the proposed building heights are consistent with the applicable zoning regulations, and a single-story home buffer is not required. The project also provides adequate pedestrian connectivity through internal walkways and sidewalks along all street frontages. As a result, an additional perimeter walking path is not necessary. Thus, the proposed development is consistent with Municipal Code requirements for setbacks, building height, and pedestrian connectivity.

RECOMMENDATION
Adopt Resolution No. 26-14, recommending that the City Council adopt Mitigated Negative Declaration No. 2398 and the Mitigation Monitoring and Reporting Program, and approve Planned Development Overlay 22-05152 Zone, Tentative Tract Map 22-05153 (TTM 37907) and Development Plan Review 22-00014 to facilitate the construction of a gated 91 detached singlefamily residential development on 12.8 acres, located north of Metz Road between McKimball Road and “A” Street, based on the findings contained in the Resolution and subject to the Conditions of Approval.

BUDGET (or FISCAL) IMPACT: There is no fiscal impact associated with this project since all project costs are borne by the applicant.

Prepared by: Mathew Evans, Project Planner
Reviewed by: Patricia Brenes, Planning Manager
EXHIBITS:

A. Resolution 26-14 with Conditions of Approval (Planning, Fire, and ALUC, Engineering, Public Works, Community Services, and Building & Safety) B. Location/Aerial Map
C. Existing and Proposed Zoning Maps (PD Overlay Zone)
D. MARB/IPA ALUCP Map
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E. Project Plans (Site Plan, Plotting Plan, Building Elevations, Renderings, Conceptual Landscape Plan)
Due to the size of the files, Project Plans (Site Plan, Proposed Plan Mix, Floor Plans, Building Elevations, Renderings, Landscape Plans, Wall and Fence Plans, Color and Material Sample Sheet, etc.) are available online at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-public-review/-folder462#docan1206_1313_479 F. Tentative Tract Map No. 37907
G. Initial Study/Mitigated Negative Declaration and Associated Technical Studies.

Due to the size of the file, the documents are available online at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-public-review/-folder462#docan1206_1313_479 H. Appendix H – Response to Comments
Due to the size of the file, the documents are available online at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-public-review/-folder462#docan1206_1313_479 I. Public Comment Letter
J. Planning Commission Staff Report without Exhibits – Dated October 16, 2024 K. Planning Commission Staff Report without Exhibits – Dated December 4, 2024 L. Planning Commission Staff Report without Exhibits – Dated December 18, 2024 M. Planning Commission Staff Report without Exhibits – Dated July 15, 2026 N. Notice of Public Hearing
Consent:

Public Hearing: X
Business Item:

Presentation:

Other:
1012
Attachment 9
Initial Study/Mitigated Negative
Declaration, Technical Studies, and
Response to Comments.

Due to the size of the file, the documents
are available online at:
https://www.cityofperris.org/departments/
developmentservices/planning/environmentaldocuments-for-public-review/-folder462#docan1206_1313_479 1013
Attachment 10
Public Comment Letter from Planning
Commission meeting
1014
From: Samantha Miranda <[email protected]>
Sent: Saturday, August 8, 2026 6:14 AM
To: [email protected] <[email protected]>; Perris Housing <[email protected]>
Subject: 8/11/26 Public Hearing
Hello
I am a community member of Riverside county’s City of Perris and a neighbor within these plans.

Please share the request at the Board Chamber public hearing in reference to ZAP1690MA26 - Pacific Communities and also take my comment to Perris City planning.

1. I oppose the re-zoning to accommodate 91 houses

2. Current zoning will allow larger parcels and less housing to reduce traffic and give the new community a better living experience without everyone feeling like they are on top of their neighbors. This will also improve safety less people in close proximity reduces conflict amongst neighbors and community members.

3. Please have Pacific Communities create a single story buffer zone to already existing joining properties. This will help maintain some sense of privacy to already existing properties.

4. Please have the Pacific Community include a public walking path round the whole project. There are many community members that walk these neighborhoods in the morning and evening and having beautiful walking paths are needed with improved lighting for safety.

Thank you for your time.

Samantha
City of Perris resident
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Attachment 11
Notice of Public Hearing
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CASES: Planned Development Overlay Zone
22-05152
Tentative Tract Map 22-05153
(TTM 37907)
Development Plan Review
22-00014
APPLICANT: Anthony Arnest, on behalf of
Pacific Communities
LOCATION: North of Metz Road between
McKimball Road and “A” Street
within the R-6,000 - Single Family
Zone.

PROPOSAL: To consider the following
entitlements to facilitate a gated residential development on 12.8 acres:1) Planned Development Overlay Zone to
allow flexibility from the R-6,000 Single Family
Residential development standards; 2) Tentative Tract
Map to subdivide 12.8 acres into 91 residential lots; and 3) Development Plan Review for review of the site plan
and building elevations.

ENVIRONMENTAL DETERMINATION:

Recommend the adoption of a Mitigated Negative
Declaration (MND 2398) and Mitigation Monitoring and
Reporting Program, as the project will not have a
significant effect on the environment.

PUBLIC HEARING: The City Council is scheduled to
consider this project on September 29, 2026, at 6:30 p.m.

The Planning Commission considered the project on
September 2, 2026, and recommended approval to the City Council by a 4-0 vote and 1 abstention.

All information is available for review at the Development Services Department, Planning Division, located at 135
North D Street, Perris. Electronic copies of the IS/MND and Project Plans can be viewed on the City’s website at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-publicreview/-folder-462#docan1206_1313_479 Any person affected or concerned by this application may submit written comments to the Office of the City Clerk before the City Council hearing by 5:00 p.m. At the public hearing, any person may appear and be heard in support of or in opposition to the project. At the hearing or during deliberations, the City Council could recommend approval of an alternative proposal for the above project, including any changes to the proposal. Any person challenging this project in court may be limited to raising only those issues identified at the public hearing described in this notice or in writing delivered to the City Council prior to the public hearing.

In compliance with the Americans with Disabilities Act
and Government Code Section 11135, the City Council has adopted a reasonable accommodations policy to swiftly
resolve accommodation requests. The policy can be found on the City’s website at:
https://www.cityofperris.org/home/showpublisheddocum
ent/15875/638102339679387909. Please contact the City
Clerk’s Office at (951) 943-6100 to make an
accommodation request or to obtain an electronic or
printed copy of the policy.

CITY OF PERRIS

CITY COUNCIL

PUBLIC HEARING

COUNCIL CHAMBERS

CITY HALL
101 NORTH “D” STREET
PERRIS, CA 92570
Date & Time: September 29, 2026, at 6:30 p.m.

Project Planner: Mathew Evans, Project Planner
Phone : (951) 943-5003
Email : [email protected]
Si necesita un intérprete por favor llámenos al (951)
943-5003

NOTICE OF PUBLIC HEARING
This may affect your property.

Please read:

Notice is hereby given that the City Council of the City of Perris will hold a Public Hearing on the item below:
1017

CITY OF PERRIS

CITY COUNCIL

AGENDA SUBMITTAL

12.A.

BACKGROUND/DISCUSSION:

MEETING DATE: September 29, 2026
SUBJECT: Consideration to adopt Proposed Resolution Numbers (next in order) regarding financing and issuance of bonds associated with CFD No. 2022-2 (Perris Logistics Center) to finance certain public facilities located outside or within the CFD. Perris Logistics Center has a northern site located at Redlands Avenue and Ellis Avenue and a southern site located at Mapes Road and Goetz Road within the City.

REQUESTED ACTION: That the City of Perris adopt the following resolutions:

1. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PERRIS APPROVING CERTAIN EXCEPTIONS TO AND WAIVERS

OF THE DEBT ISSUANCE AND MANAGEMENT POLICY OF THE

CITY OF PERRIS IN CONNECTION WITH THE PROPOSED

ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY
FACILITIES DISTRICT NO. 2022-2 (PERRIS LOGISTICS CENTER)

2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PERRIS ACTING FOR THE CITY AND IN ITS CAPACITY AS THE

LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2022-2 (PERRIS LOGISTICS CENTER) OF THE CITY OF

PERRIS, AUTHORIZING THE ISSUANCE OF BONDED

INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT NOT
TO EXCEED $14,000,000 TO FINANCE PUBLIC FACILITIES,

APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN

OTHER ACTIONS IN CONNECTION THEREWITH
CONTACT: Matthew Schenk, Director of Finance
The purpose of this staff report is to authorize the issuance of Community Facilities District (“CFD”) Bonds for CFD No. 2022-1 (Perris Logistics Center) and to waive specific provisions of the City’s Debt Issuance and Management Policy. The CFD Bonds will be used to finance public facilities, including some Easten Municipal Water District Facilities. This item was reviewed and recommended moving forward at the September 17, 2025, Ways & Means meeting based on the Bonds being issued solely from special taxes generated from IDI North properties. There is no impact to the City’s General Fund. .
1018
BUDGET (or FISCAL) IMPACT:

The property owners voluntarily pulled a special tax lien on their property. These special taxes will be used to pay the debt service of the bonds.

ADDITIONAL BACKGROUND/DISCUSSION:

See Attachment 1
None. Costs will be paid from special taxes or from the proceeds of the Bonds.

Prepared By: Matthew Schenk, Director of Finance
Attachments:

1. Additional Background & Discussion.docx

2. Vicinity Map.pdf

3. Resolution Approving Certain Exceptions and Waivers.docx

4. Resolution of Issuance.doc

5._Fiscal_Agent_Agreement (1).doc

6. Bond Purchase Agreement.docx

7. Preliminary Officail Statement.docx

8. Continuing Disclosure Agreement.docx

9. Appraisal Report.pdf
1019
ATTACHMENT 1

ADDITIONAL BACKGROUND /

DISCUSSION
1020
ADDITIONAL BACKGROUND/DISCUSSION:

Formation and Development of the District
On July 25, 2023, Community Facilities District No. 2022-2 (Perris Logistics Center) was formed and the qualified electors within CFD No. 2022-2, which consisted solely of the then owner of land, IDI Logistics (the “Developer”), (i) authorized to incur bonded indebtedness of up to $25,000,000 in order to finance certain public facilities and various costs related thereto, (ii) approved the Rate and Method of Apportionment of Special Tax (the “RMA”), and (iii) approved the levy of the Special Tax on the taxable property within the CFD. The Developer has requested a bond sale (the “Bonds”) to finance or reimburse the costs of public facilities and improvements nearby or within the development. The Developer is requesting that Bonds be issued based on the Special Taxes levied on the north site of the Perris Logistics Center and not on the south site until building permits are pulled for two buildings to be constructed on the south site.

CFD No. 2022-2 (Perris Logistics Center) has a northern site located at Redlands Avenue and Ellis Avenue (“IDI North”) and a southern site located at Mapes Road and Goetz Road (“IDI South”) within the City of Perris (the “City”). The development within the northern site consists of two completed buildings that are leased out to Home Depot and Lowe’s, and a third building under construction that has a signed lease with Medline to occupy the building once completed. The south site will consist of 3 buildings, and the site recently completed on-site drainage channels. It is anticipated that the building permits for 2 buildings will be pulled in 2027.

The Special Tax Bonds
CFD No. 2022-2 is proposing to issue bonds designated as Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series for the purpose of providing funds to finance certain public facilities located nearby or within CFD No. 2022-2 to be owned and operated by the City, a reserve account securing the Bonds, and pay costs of issuance of the Bonds. The City has entered into an Amended and Restated Acquisition Agreement with the Developer providing for the financing or reimbursement of eligible public facilities, improvements and related fees from proceeds of the Bonds. The City Council, acting as the legislative body of the CFD No. 2022-2 will authorize the delivery of Bonds in a principal amount not to exceed $14,000,000. The Good Faith Estimates required pursuant to Government Code Section 5852.1 are set forth in Appendix A to this Resolution and are based on preliminary bond sizing information provided by Oppenheimer & Co. Inc., as Underwriter, as of September 8, 2026.

The Bonds will be secured by special taxes levied within CFD No. 2022-2, pursuant to the RMA.

Taxes will be levied at the Assigned Special Tax under the RMA as approved by the landowner voters in CFD No. 2022-2, which would generally be the maximum special tax which may be levied unless there is also a need for back up special tax pursuant to the RMA approved for the District. The proposed principal amount and debt service on the Bonds have been sized based solely on the Special Taxes attributable to IDI North and do not rely upon Special Taxes attributable to IDI South per the policy direction approved by Ways & Means Committee.

However, Special Taxes levied throughout the entire District, including IDI South, will secure repayment of the Bonds. It is anticipated that a second series of Bonds will be issued based on the special taxes levied against the southern site when the specific provisions of the additional bonds test are met pursuant to Section 2.13 of the Fiscal Agent Agreement. 1021
The total appraised and assessed value established by the appraisal prepared by Integra Realty Resources for CFD No. 2022-2 was $832,780,014 as of August 14, 2026. A copy of the appraisal is attached to this report. The ratio of that value to the estimated total principal amount of the Bonds and other direct and overlapping land-secured debt within CFD No. 2022-2, including general obligation bond indebtedness, is approximately 34.3-to-1*.

The projected annual special taxes for Fiscal Year 2026-27 for property within CFD No. 2022-2 are as follows:

The table below prepared by Willdan Financial Services provides a breakdown estimated value to lien by property owner and parcel:

Compliance with the City’s Debt Issuance and Management Policy The proposed financing has been evaluated in accordance with the City’s Debt Issuance and Management Policy and the requirements applicable to industrial or commercial land-based financings. As described below, the financing satisfies the applicable requirements of the Debt Policy, except for certain provisions for which limited exceptions and waivers are being requested pursuant to a separate resolution presented to the City Council in connection with the authorization of the Bonds (See Debt Policy Waiver Resolution Section Below). Specifically, the Debt Policy provides the following requirements for industrial or commercial CFDs:

Land Use
Classification # of Parcels
Maximum
Special Tax Per
Acre (1)
FY 2026-27
Applied Rate
FY 2026-27 Dollars
Levied
Non-Residential 8 $4,669 $4,669 $1,529,668
Property Owner APN
Taxable
Acres
Assessed/
Appraised
Value
FY 2026-27
Maximum
Special Tax
% of
Maximum
Special Tax
Share of 2026
Bonds
Direct and
Overlapping
Debt
Total Direct and
Overlapping Debt
Value-toLien Ratio
Developed Property
IDIL Perris Logistics Center North 1, LP (Medline) 310-170-020 48.28 $221,000,000 $225,435 14.74% $1,867,239 $286,120 $2,153,359 102.63:1 IDIL Perris Logistics Center North, LP (Low e's) 310-170-021 57.90 166,365,714 270,353 17.67% 2,239,295 336,789 2,576,084 64.58:1 Recline Borrow er, LLC (Home Depot) 310-170-016 55.10 191,294,300 257,279 16.82% 2,131,004 4,706,727 6,837,731 27.98:1 Total Developed Property 161.28 $578,660,014 $753,067 49.23% $6,237,538 $5,329,636 $11,567,174 50.03:1 Undeveloped Property
Anatolia Perris, LLC 330-120-002 46.52 $71,643,995 $217,217 14.20% $1,799,171 $1,684,392 $3,483,563 20.57:1 Anatolia Perris, LLC 330-120-017 23.36 35,976,005 109,075 7.13% 903,453 846,638 1,750,091 20.56:1 Subtotal Anatolia Perris, LLC 69.88 $107,620,000 $326,292 21.33% $2,702,624 $2,531,030 $5,233,654 20.56:1 Silver Hollow , LLC 330-120-018 50.15 $78,305,831 $234,166 15.31% $1,939,562 $2,255,242 $4,194,804 18.67:1 Silver Hollow , LLC 330-120-020 10.73 16,754,169 50,102 3.28% 414,985 483,400 898,385 18.65:1 Subtotal Silver Hollow, LLC 60.88 $95,060,000 $284,268 18.58% $2,354,547 $2,738,642 $5,093,189 18.66:1 IDIL Perris Fulfillment Center, LP 330-120-021 35.56 51,440,000 166,041 10.85% 1,375,291 998,144 2,373,435 21.67:1 Subtotal IDI Fulfillment Center, LP 35.56 $51,440,000 $166,041 10.85% $1,375,291 $998,144 $2,373,435 21.67:1 Total Undeveloped Property 166.32 $254,120,000 $776,601 50.77% $6,432,462 $6,267,816 $12,700,278 20.01:1 Total 327.60 $832,780,014 $1,529,668 100.00% $12,670,000 $11,597,452 $24,267,452 34.32:1 1022
i. Land-Based Financings – Industrial or Commercial CFDs. a. Purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district to finance industrial or commercial development. The proposed project will need to bring development and public benefit to the area in which the project is located. The public improvements related to the Project must be significant and necessary to provide services to develop a previously undeveloped or underdeveloped area of the City. Council approval must be obtained to use this form of financing and it is Council’s discretion whether the proposed project is categorized as “industrial”, “residential”, “commercial” or other for purposes of this policy. (Policy provision met with approval of the EMWD JCFA and Amended Acquisition Agreement on August 25th) b.Eligible Project. Projects will not be eligible for consideration until they meet or exceed $7,000,000 of improvements to be funded. The developer will provide the City evidence of the value of the improvements prior to City Council approval. (Policy provision met with proposed bond issuance of $14,000,000 and many more than $14,000,000 of infrastructure to fund)
c.Eligible Developer. The developer must be experienced with industrial and/or commercial projects, including rental projects. As detailed below, the developer must provide evidence of experience and financial stability to the City. Developer must provide all financial and development information requested by City related to developer and/or any affiliates or related parties, including any past or current projects, financial stress and/or bankruptcies. City is entitled to request any financial information a financial institution may request in providing financing to a party. A significant additional deposit or contribution may be necessary from the Developer for the City to hire consultants to analyze the financial viability of the Developer, tenants and the project. (In 2023, the City hired Eide Bailly to review IDI Logistics financial position when the CFD was formed and they were found to be in a strong financial position.

Additionally, Fieldman prepared a memo outlining its
recommendation that IDI Logistics CFD met the requirements of the City’s CFD Policies. The City Council reviewed these documents on May 30, 2023, and approved the Resolution of Intention to form the CFD. Certain informational requirements of this provision are proposed to be waived as set forth in the Debt Policy Waiver Resolution, the parties have not reviewed any of the property owner financial details besides IDI and the developer is not a public company, Specifically, the following waivers are requested to be waived due to the structural protections approved by the Ways & Means Committee and implemented by the City’s Finance Team:

1. That at least 75% of the project be leased before debt issuance.

2. That the leases should span the term of the Bonds.

3. That build-out of the project be substantially complete before debt issuance.
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4. That the Developer be a public company and provide supplemental security for the Bonds.

5. That unavailable information is not material to its conclusion concerning the financial viability of the Bonds
d.Credit Quality. When a developer requests the formation of a district, the City will carefully evaluate the applicant's financial plan and ability to carry out the project, including the payment of assessments and special taxes during build-out. Prior to formation of a district, the following requirements must be met:

1. The developer will provide a description of the tenants under negotiation and forms of potential leases to the City. All of the potential tenants must have formally acknowledged the taxes and lien on the property. The developer will identify any other debt payable on the project area. The developer shall provide the City their financials and the financials of the potential tenants over the last three years. In addition, the Developer will provide any information requested under subsection (b) above.

2. The developer will provide the City proof of a successful track record of warehousing/industrial and/or commercial development and ownership and management of similar projects. The developer shall provide information on at least three recent projects, any longterm projects and any information on failed projects in the last 20 years.

3. The developer shall be a public company and its name shall be the owner of the land. If the property owner is not the developer and is a single entity LLC or other entity, the developer shall provide a financial guaranty or letter of credit in a form satisfactory to the City’s Bond Counsel or City Attorney to secure payment of special taxes, if the City deems it necessary. (IDI Logistics is a leading developer and manager of logistics real estate in the US and has provided information on existing and pending leases for completed or to be completed warehouses. Additionally, IDI Logistics has sold 3 parcels to other entities providing more diversification of ownership. Currently, Home Depot and Lowe’s occupy the 2 completed warehouses and MedLine has signed a lease to occupy the 3rd warehouse currently under construction).
e.Letter of Credit. Property Owner/Developer must be willing to provide a letter of credit or other potential security at bond issuance. Letter of credits may be requested on a case by case basis. Letters of credit may be required in various potential ways:

1. letter of credit securing the bonds;

2. letter of credit securing three years of debt service and will be replenished annually back to three years;

3. letter of credit securing undeveloped property (potentially in addition to 2); or
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4. letter of credit or guaranty for such other amount or term as determined by the City.

Letters of credit may be warranted for the following reasons at the sole discretion of the City:

1. to minimize special tax defaults or foreclosure risk;

2. because of the percentage of the project leased, the type of tenants, percentage of tenants, property owner, uses, debt related to the property or other reasons.

3. as otherwise provided by these policies or determined by the city.

4. based on a recommendation of the City’s financial consultant or financial advisor.

The determination to request a letter of credit shall be made prior to bond issuance. The City may provide indications of the necessity for a letter of credit and the type of letter of credit at formation. The letter of credit may be provided as security for the bond issue or potentially to the City for an agreement for special taxes, as determined by city. Prior to debt issuance of a district, the following requirements must be met:

1. The City’s independent financial advisor/consultant must review the financials of the developer and tenants and the forms of the leases for viability. Based on the review, the City’s financial advisor/consultant shall provide a recommendation for a letter of credit if necessary or other security.

2. All current tenants must acknowledge, in a form satisfactory to the City’s Bond Counsel, that the property they are leasing is subject to annual special tax payments and secured by a special tax lien recorded against the property. All future tenants must provide such acknowledgement prior to or concurrently with entering their lease.

Tenants must acknowledge that their lien is subordinate to the special taxes and has the potential to be wiped out upon foreclosure.

3. Confirmation that at least 75% of the project is leased. Leases should span the term of bonds. The proposed majority tenants shall be well known companies with strong track records. Financial information on potential tenants shall be provided to City upon request. Terms of leases and tenants are significant in evaluating the viability of a project.

4. Build out of the project should be substantially complete.

5. Letters of credit may need to be provided as determined by these policies. (Based on the development status, existing and pending leases, current assessed and appraised value, diversification of ownership, District-wide Special Tax pledge and the sizing of the Bonds based only on Special Taxes attributable to IDI North, staff, the financial advisor and the underwriter do not recommend requiring a letter of credit or other supplemental security. The applicable supplemental security requirements are proposed to be waived pursuant to the Debt Policy Waiver Resolution).
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f. Tax Burden. The developer shall certify that the total tax burden on its tenants shall not be significantly burdensome on its tenants based on the rental charges, other taxes and charges due. (The special tax per acre was established at $4,000 per acre at formation and escalates 2% per year and it has not impacted the build-out or leasing of the project.) g.Other Provisions. Unless stated otherwise or in conflict with the provisions of this section, the requirements from Section 5 (iii) (c)-(n) of this policy apply to industrial and commercial land-based financings. ii. Exceptions - The City Council may waive certain requirements of the residential/ commercial and/or industrial policies not required by law where it determines to do so or finds such exceptions are in the public interest. The City may remove the tax lien should the provisions of the CFD not be met within five years of formation and the City determines to do so. (A separate Debt Policy Waiver Resolution presented concurrently with the authorization of the Bonds approves the exceptions described above based on the findings and financing protections set forth therein.)
Debt Policy Waiver Resolution
The proposed issuance of the Bonds is also subject to a separate resolution approving exceptions to and waivers of certain provisions of the City’s Debt Issuance and Management Policy (the “Debt Policy”). The need for the requested waivers is primarily attributable to the current development status of IDI South, where the three planned industrial buildings have not yet been constructed. As a result, the overall Perris Logistics Center project does not currently satisfy certain Debt Policy provisions applicable to industrial land-secured financings, including requirements relating to project leasing and buildout. The requested waivers also address certain requirements relating to property ownership structure, availability of financial and tenant information, and supplemental security. The waiver resolution is being presented concurrently with the authorization of the Bonds and reflects the City’s determination that the proposed financing includes sufficient structural protections to support the requested exceptions. These structural protections include:
1) Bonds sized solely from special taxes from the IDI North 2) Value to Lien estimated at 34.3:1
3) Long-term leases in-place for the 3 buildings in IDI North 4) Additional Bonds tests requires certain value to lien thresholds to be met, no outstanding special tax delinquencies to exist, and 2 of the 3 buildings in IDI South to be under construction to issue bonds
Presently, development of IDI South remains incomplete with on-site drainage recently completed, the Bonds are being sized based solely on the development and Special Tax revenues attributable to IDI North, where two buildings have been completed and leased and a third building is under construction and leased to Medline, Inc. Special Taxes levied throughout both Perris North and IDI South will nevertheless secure repayment of the Bonds, providing additional Special Tax coverage from IDI South beyond the revenues relied upon to size the Bonds.

In addition, the financing documents will include enhanced conditions on the issuance of any Additional Bonds, including minimum value-to-lien requirements, a limitation relating to Special 1026
Tax delinquencies, and development conditions requiring building permits for vertical construction on at least two of the three Perris South building sites. These provisions, together with the District-wide Special Tax pledge, the current development and leasing status of Perris North, and the independent appraisal, provide additional safeguards in support of the requested Debt Policy waivers.

Financing Documents
The attached bond issuance resolution approves the forms and authorizes the execution and delivery of the financing documents described below. The resolution also authorizes the appropriate officers of the City and CFD No. 2022-2 to execute or enter into such documents and other agreements and certificates necessary to accomplish the purposes of the financing. All such documents are or will be on file with the City Clerk.

Preliminary Official Statement: The Bonds will be sold through distribution of the Preliminary Official Statement (“POS”) and the Official Statement to investors. The Official Statement describes the Bonds, the relative risks associated with the purchase and other necessary information pertinent to investors. This includes information regarding the security for the Bonds, the CFD, the taxable property and other matters material to investors. The City is required to review the Official Statement and make sure it provides to bondholders all material information relevant to the bonds and does not omit anything relevant to a bondholder’s decision to purchase the Bonds. The Preliminary Official Statement is included with this report. Material found within the Official Statement is subject to Rule 15c2-12 of the Securities Exchange Act of 1934 and other laws regulating material misstatements and omissions.

Continuing Disclosure Agreement: The CFD No. 2022-2 will enter into a Continuing Disclosure Agreement for the purpose of complying with continuing disclosure obligations under Rule 15c2- 12 of the Securities Exchange Act of 1934. Willdan Financial Services will serve as Dissemination Agent thereunder. The Continuing Disclosure Agreement is an attachment to the POS.

Fiscal Agent Agreement: The Bonds will be issued pursuant to a Fiscal Agent Agreement between the District and U.S. Bank Trust Company, National Association as fiscal agent (the “Fiscal Agent”). The Fiscal Agent Agreement describes the terms of the Bonds, as well as provisions relating to the redemption, prepayment, defeasance, default and amendment of or to the Bonds, including conditions under which delinquent property owners will be subject to foreclosure. It also specifies how special taxes collected on a pay/go basis to date and in the future will be applied to reimburse IDI for railroad crossing improvements and the terms required to issue Additional Bonds.

Bond Purchase Agreement: The Bonds will be sold to Oppenheimer & Co. Inc. (the “Underwriter”) pursuant to the terms of a Bond Purchase Agreement between the CFD No. 2022- 2 and the Underwriter. The parameters set forth in the Resolution for the Sale included a not-toexceed true interest cost of 6.50% and a not-to-exceed Underwriter’s discount of 1.90%.

Prepared by: Matthew Schenk, Director of Finance
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Attachment No. 2
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Source: Esri, Vantor, Earthstar Geographics, and the GIS User Community
Legend
City Boundary
CFD 2022-2 Parcels
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CFD No. 2022-2 Perris Logistics Center
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01006.0007 2175373.2 1
ATTACHMENT 3

RESOLUTION APPROVING CERTAIN

EXCEPTIONS AND WAIVERS
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01006.0007 2175373.2 2
RESOLUTION NUMBER _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PERRIS APPROVING

CERTAIN EXCEPTIONS TO AND WAIVERS OF THE DEBT ISSUANCE AND

MANAGEMENT POLICY OF THE CITY OF PERRIS IN CONNECTION WITH THE

PROPOSED ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PERRIS LOGISTICS CENTER)
WHEREAS, the City Council (the "Council") of the City of Perris (the "City") previously conducted proceedings under the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"), to form Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the "District"); and
WHEREAS, the District consists generally of six industrial building sites, three located in the northern portion of the District ("Perris North") and three located in the southern portion of the District ("Perris South"), with certain building sites presently consisting of more than one assessor parcel; and
WHEREAS, the Council previously adopted Resolution No. 6193 determining that the formation of the District complied with the City's Debt Issuance and Management Policy (the "Policy") and making findings concerning the public purpose, eligible improvements, developer experience, financial capacity, tax burden and other matters relating to the District; and WHEREAS, the District is authorized to issue bonds in an aggregate principal amount not to exceed $25,000,000 to finance or reimburse the costs of public facilities and related costs authorized for the District; and
WHEREAS, the City and the District now propose to issue an initial series of special tax bonds in an approximate principal amount of $12,000,000 (the "Bonds") to finance or reimburse eligible public facilities and related costs; and
WHEREAS, the Bonds will be secured by Special Taxes levied on taxable property throughout both Perris North and Perris South, but the proposed principal amount and debt service on the Bonds will be sized based upon the value, development status and Special Tax revenues attributable to Perris North, without reliance upon completion of the buildings in Perris South; and WHEREAS, based upon the estimated fiscal year 2026-27 Special Tax levy, approximately $753,067, or 49.23%, of the projected District-wide levy is attributable to Perris North, and approximately $776,601, or 50.77%, is attributable to Perris South, subject to annual levy determinations under the Rate and Method of Apportionment; and WHEREAS, two of the three buildings in Perris North have been completed, one of which is leased to and occupied by Home Depot and one of which is leased and occupied by Lowe’s for use as a distribution center. Lowe’s took occupancy of the building in April 2025 and the lease runs through 2035, with three five-year options to extend. The third Perris North building is under construction pursuant to an issued building permit and has been 100% pre-leased to Medline, Inc. for use as a distribution center with a twelve-year lease, with four five-year options to extend; and 1031
01006.0007 2175373.2 3
WHEREAS, the three buildings in Perris South have not yet been constructed, and the overall six-building project therefore does not presently satisfy the Policy provisions stating that at least 75% of the project should be leased and that buildout should be substantially complete before debt issuance; and
WHEREAS, Section 5(iv)(e) of the Policy provides that letters of credit or other security may be required in connection with industrial or commercial land-based financings, including where appropriate to minimize Special Tax default or foreclosure risk or because of the percentage of the project leased, the types of tenants, property ownership, uses or other factors; and WHEREAS, the City does not propose to require a letter of credit, financial guaranty or separate delinquency management fund for the Bonds because the Bonds will be secured by Special Taxes levied throughout the entire District, while the Bonds will be sized only on Perris North, and therefore the Special Taxes attributable to Perris South are expected to provide additional coverage and protection against delinquencies beyond the revenues used to size the Bonds; and
WHEREAS, the City expects to receive an appraisal of the taxable property within the entire District prepared by Integra Realty Resources (“IRR”), an independent appraiser, and issuance of the Bonds will be conditioned upon the appraisal demonstrating compliance with the value-to-debt requirements of the Policy, unless otherwise expressly approved by the Council; and WHEREAS, the City's independent financial advisor has reviewed the proposed financing, including the appraisal, the proposed principal amount and debt service structure, projected Special Tax revenues, the allocation of Special Taxes between Perris North and Perris South, development and leasing status, ownership concentration, and the proposed conditions on the issuance of Additional Bonds, and concluded the viability of the financing; and WHEREAS, the financing documents for the Bonds are expected to provide that no Additional Bonds may be issued unless, among other conditions: (i) the appraised value of taxable property within the District is at least five times the aggregate principal amount of the Bonds then outstanding, the proposed Additional Bonds and other outstanding land-secured indebtedness payable from or secured by Special Taxes or assessments levied on property within the District; (ii) no Special Tax has been delinquent during the [18]-month period preceding issuance; and (iii) building permits for vertical construction have been issued and remain in effect for at least two of the three building sites in Perris South; and
WHEREAS, Section 5(v) and Section 12(iii) of the Policy authorize the Council to waive provisions of the Policy that are not required by law when the Council determines that a waiver is appropriate for a particular financing or is in the public interest; and WHEREAS, the Council has considered the proposed staged financing structure, the District-wide Special Tax pledge, the development and leasing status of Perris North, the additional Special Tax coverage attributable to Perris South, the independent appraisal demonstrating an estimated value-to-lien of 34.32:1, the review of the City's financial advisor, the proposed Additional Bonds conditions and the other protections described herein, and desires to approve the limited exceptions and waivers set forth below; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Perris as follows:

Section 1. The foregoing recitals are true and correct and are adopted by the Council and incorporated herein.
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01006.0007 2175373.2 4
Section 2. The Council hereby finds and determines that the proposed issuance of the Bonds serves a significant public purpose and is in the public interest because the Bonds will finance or reimburse eligible public facilities necessary to support industrial development within the City, the financing will be structured as a staged issuance based upon development in Perris North, and the Bonds will nevertheless be secured by Special Taxes levied throughout the entire District.

Section 3. Subject to the conditions set forth in Section 5 below, the Council hereby approves exceptions to and waives strict compliance with the following provisions of the Policy in connection with the Bonds:
(a) the requirement in Section 5(iv)(e)(3) that at least 75% of the project be leased before debt issuance;
(b) the statement in Section 5(iv)(e)(3) that leases should span the term of the Bonds, to the extent the existing or proposed leases do not extend through the final maturity of the Bonds;
(c) the requirement in Section 5(iv)(e)(4) that buildout of the project be substantially complete before debt issuance;
(d) the requirement in Section 5(iv)(d)(3) that the developer be a public company whose name is the owner of the land, and the related requirement for a financial guaranty or letter of credit to the extent property is owned through special-purpose entities or by owners other than the developer;
(e) the provisions of Section 5(iv)(e) to the extent they would otherwise require a letter of credit, financial guaranty, delinquency management fund or other supplemental security for the Bonds; and
(f) the requirements of Sections 5(iv)(c), 5(iv)(d)(1) and 5(iv)(e)(1) to the limited extent complete financial, tenant, lease, affiliate or development information is not available from every property owner or tenant, provided that the City's financial advisor identifies the information reviewed and determines that the unavailable information is not material to its conclusion concerning the financial viability of the Bonds.

Section 4. The Council finds that the exceptions and waivers approved in Section 3 are appropriate for the Bonds and are in the public interest because: (a) the Bonds will be sized based only upon Perris North; (b) Special Taxes levied on taxable property in both Perris North and Perris South will secure the Bonds; (c) the Special Taxes attributable to Perris South are expected to provide additional coverage beyond the revenues used to size the Bonds; (d) two Perris North buildings have been completed and leased to nationally recognized tenants, and the third Perris North building is under construction pursuant to an issued building permit and has been leased to Medline Inc.; (e) an independent appraisal of the entire District was conducted by IRR and the estimated value-to-lien is 34.32:1; (f) the City's independent financial advisor hasreviewed the financial viability of the Bonds and the need for additional security; and (g) the issuance of Additional Bonds will be subject to enhanced value-to-lien, delinquency and Perris South development conditions.

Section 5. The waivers and exceptions approved by this Resolution are conditioned upon satisfaction of the following requirements before issuance of the Bonds:
(a) the principal amount of the Bonds shall not exceed $14,000,000, unless a greater amount is subsequently approved by the Council;
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01006.0007 2175373.2 5
(b) the proceeds of the Bonds available for eligible public facilities and related reimbursements shall equal at least $7,000,000, unless the Council expressly approves otherwise;
(c) the City shall receive an appraisal of the taxable property within the entire District, prepared by an independent appraiser, demonstrating a value-to-debt ratio of not less than the ratio required by the Policy, unless the Council expressly approves a different ratio in accordance with the Policy;
(d) the City's independent financial advisor certifies that it has reviewed the information in connection with the bond issuereviewed and based upon the information reviewed by it, the proposed issuance of the Bonds is financially viable and a letter of credit, financial guaranty, delinquency management fund or other additional security is not necessary or advisable for the Bonds and that further information from the property owners or tenants are not material to financial viability of the bonds, with any other required written determination being hereby waived;
(e) the City shall receive acknowledgements from all current tenants required by Section 5(iv)(e)(2) of the Policy, in a form satisfactory to Bond Counsel, acknowledging the annual Special Tax and the lien securing the Special Tax, except to the extent otherwise approved by the City Manager upon consultation with Bond Counsel; (f) the City shall receive a certification or other evidence satisfactory to the City Manager and the City's financial advisor that the aggregate tax burden applicable to the taxable property and tenants is not significantly burdensome in light of market rents, project value, use and other applicable charges;
(g) the Fiscal Agent Agreement or other governing bond document shall contain conditions on the issuance of Additional Bonds substantially consistent with the value-to-lien, Special Tax delinquency and Perris South building permit requirements described in the recitals to this Resolution, subject to such revisions as the City Manager, in consultation with the City's financial advisor and Bond Counsel, determines are advisable and consistent with the purposes of this Resolution; (h) the final ownership of taxable property and any affiliated ownership groups shall be reviewed to determine compliance with the continuing disclosure and ownership concentration provisions of the Policy; and
(i) all other requirements of the Policy applicable to the Bonds that are not expressly waived by this Resolution shall be satisfied.

Section 6. The Council further determines that the waivers and exceptions approved by this Resolution apply only to the Bonds and do not constitute a general amendment to or waiver of the Policy for any other financing, including any Additional Bonds, except as may be separately approved by the Council.

Section 7. The City Manager, the Assistant City Manager, the Director of Finance and each of their designees are hereby authorized to take all actions necessary or advisable to carry out the purposes of this Resolution, including confirming satisfaction of the conditions set forth herein, with such confirmation to be conclusive evidence of compliance.

Section 8. This Resolution shall take effect immediately upon its adoption. 1034
01006.0007 2175373.2 6
ADOPTED, SIGNED AND APPROVED this ____ day of __________, 2026.

ATTEST:
__________________________________
City Clerk
__________________________________
Mayor
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01006.0007 2175373.2 7

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PERRIS )
I, ______________________, CITY CLERK OF THE CITY OF PERRIS, DO HEREBY CERTIFY that the foregoing Resolution Number ______ was duly adopted by the City Council of the City of Perris at a regular meeting of said Council on the ____ day of __________, 2026, and that it was so adopted by the following vote:

AYES: _________________________________________________ NOES: _________________________________________________ ABSENT: ______________________________________________
ABSTAIN: _____________________________________________
By: __________________________________
City Clerk
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01006.0120 2007837.4 9/15/2026
ATTACHMENT 4

RESOLUTION OF ISSUANCE
1037
2 RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PERRIS ACTING FOR THE CITY AND IN ITS CAPACITY AS

THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2022-2 (PERRIS LOGISTICS CENTER) OF THE

CITY OF PERRIS, AUTHORIZING THE ISSUANCE OF

BONDED INDEBTEDNESS IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $14,000,000 TO FINANCE PUBLIC

FACILITIES, APPROVING CERTAIN DOCUMENTS AND

TAKING CERTAIN OTHER ACTIONS IN CONNECTION

THEREWITH
WHEREAS, the City Council (the “City Council”) of the City of Perris (the “City”), located in Riverside County, California (hereinafter sometimes referred to as the “legislative body of the District”) has, previously formed Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, following the formation of the District, a certain bond proposition was submitted to the qualified electors within the District, and was approved by more than twothirds of the votes cast at the election held on July 25, 2023, in addition to the levy of a special tax (the “Special Tax”) in accordance with a rate and method of apportionment within the District (the “RMA”); and
WHEREAS, following formation and the election, certain property owners prepaid their special tax obligations pursuant to the RMA; and WHEREAS, based upon the formation proceedings and the election held by the legislative body of the District, the District is authorized to issue bonds, pursuant to the Act, in an aggregate principal amount not to exceed $25,000,000 in order to finance the acquisition and/or construction of certain facilities and incidental expenses; and WHEREAS, the District desires to accomplish the financing of certain public facilities through the issuance of bonds in an aggregate principal amount not to exceed $14,000,000 designated as “Community Facilities District No. 2022-2 (Perris Logistics Center) of Special Tax Bonds, 2026 Series” (the “Bonds”); and
WHEREAS, in order to effect the issuance of the Bonds, the legislative body of the District desires to approve the form of a Fiscal Agent Agreement, by and between the District and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent Agreement”), the form of which is presented herewith and on file with the City Clerk; and 1038
3 WHEREAS, the City Council has heretofore undertaken proceedings and declared the necessity of the District to issue bonds pursuant to the terms and provisions of the Act, and desires to issue bonds at this time under the Act, to provide the funds to pay for the public facilities which the District is authorized to finance; and WHEREAS, in order to raise the funds to sell the Bonds, the District has caused the preparation of a Preliminary Official Statement, detailing the information relating to the Bonds, the form of which is presented herewith and on file with the City Clerk (the “Preliminary Official Statement”); and
WHEREAS, the legislative body of the District has determined in accordance with Government Code Section 53360.4 and other applicable laws that a negotiated sale of the Bonds to Oppenheimer & Co., Inc. (the "Underwriter") pursuant to the terms of the Bond Purchase Agreement (“Purchase Agreement”), by and between the District and the Underwriter, a form of which is on file with the City Clerk, will result in a lower overall cost to the District; and
WHEREAS, in order to effect the issuance of the Bonds by the District, the legislative body of the District desires to approve a form of Preliminary Official Statement, Fiscal Agent Agreement, and to approve the form of and authorize the execution and delivery of certain other documents; and
WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the Bonds, that it will accomplish a public purpose; and
WHEREAS, the value of the real property in the District subject to the special tax to pay debt service on the Bonds is more than four times the principal amount of the Bonds (based on an appraisal prepared by Integra Realty Resources (the “Appraisal”), and appended to the Preliminary Official Statement) and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District as calculated in the manner set forth in Section 53345.8(a) of the Act, which fact is required as a precondition to the issuance of the Bonds; and WHEREAS, in compliance with Government Code Section 5852.1, the District has obtained from its municipal advisor the required good faith estimates of the following information (a) the true interest cost of the bonds, (b) the finance charge of the bonds, (c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, (d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and WHEREAS, such good faith estimates are disclosed and set forth in Exhibit A attached hereto and incorporated herein; and
WHEREAS, pursuant to Resolution No. ____, adopted on September 29, 2026, the City Council has waived certain policy requirements under its Debt Management Policy, and therefore all conditions precedent to issuance of the Bonds pursuant to the policies and 1039
4 procedures of the City relating to community facilities districts have been met or are hereby waived; and
WHEREAS, upon further development in the District, the City Council desires to deliver a second series of bonds to finance additional infrastructure related to the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Perris, acting for itself and as the legislative body of Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris, does hereby resolve, determine and order as follows:

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.

Section 2. The District is authorized pursuant to the Act to issue the Bonds for the purpose of financing capital improvements and public facilities related to the District.

Section 3. The issuance of the Bonds in a principal amount not to exceed $14,000,000 is hereby authorized with the exact principal amount to be determined by the official signing of the Purchase Agreement for the Bonds in accordance with Section 7 below.

The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs and a public purpose to issue the Bonds. The Bonds shall mature on the dates and pay interest at the rates set forth in the Purchase Agreement to be executed on behalf of the District in accordance with Section 7 hereof.

Section 4. The form of the Fiscal Agent Agreement, a copy of which is on file with the City Clerk, be and is hereby approved in substantially the form thereof or with such changes as may be approved by the Mayor, City Manager, Assistant City Manager or Finance Director (each, an "Authorized Officer"), said Authorized Officer's execution thereof to constitute conclusive evidence of said officer’s approval of all such changes, and each of said Authorized Officers be and is hereby authorized, together or alone to execute and deliver said Fiscal Agent Agreement. The City Clerk or a duly authorized Deputy or Assistant City Clerk (the "City Clerk") is hereby authorized to attest to said Authorized Officer's signature.

Section 5. The Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor or if necessary, an Authorized Officer, and attested with the manual or facsimile signature of the City Clerk. U.S. Bank Trust Company, National Association is hereby appointed to act as fiscal agent for the Bonds.

Section 6. The covenants set forth in the Fiscal Agent Agreement to be executed in accordance with Section 4 above are hereby approved, shall be deemed to be covenants of the legislative body of the District, and shall be complied with by the District and its officers.

Section 7. The form of the Purchase Agreement relating to the purchase of the Bonds by the Underwriter, a copy of which is on file with the City Clerk, is hereby approved in the form thereof, or with such changes as may be approved by an Authorized Officer, said Authorized Officer's execution thereof to constitute conclusive evidence of said officer’s 1040
5 approval of all such changes, and each Authorized Officer be and is hereby authorized, together or alone, to execute and deliver said agreement and to insert in the Purchase Agreement the dollar amount which reflects the provisions of said Purchase Agreement; provided, however, that the true interest cost with respect to the Bonds shall not exceed 6.5% and the Underwriter’s discount shall not exceed 1.9% of the principal amount of the Bonds thereof, excluding any original issue discount.

Section 8. The form of the Continuing Disclosure Agreement, by and between the District and Willdan Financial Services, as dissemination agent, a copy of which is appended to the Preliminary Official Statement on file with the City Clerk, is hereby approved in the form thereof, or with such changes as may be approved by an Authorized Officer, said Authorized Officer's execution thereof to constitute conclusive evidence of said officer’s approval of all such changes, and each Authorized Officer be and is hereby authorized, together or alone, to execute and deliver said Continuing Disclosure Agreement Section 9. The form of the Preliminary Official Statement presented at this meeting and on file with the City Clerk is hereby approved, and the Underwriter is hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the Bonds. Each Authorized Officer is authorized to approve the Preliminary Official Statement and amendment of the Preliminary Official Statement, from time to time, pending distribution of the Preliminary Official Statement as shall be required to cause such Preliminary Official Statement to contain any further information necessary to accurately describe the Bonds. The final Official Statement relating to the Bonds shall be submitted to an Authorized Officer of the District for approval. The Underwriter is further authorized to distribute the final Official Statemen for the Bonds and any supplement thereto to the purchasers of the Bonds upon the execution of the final Official Statement as described above.

Section 10. In accordance with the requirements of Section 53345.8 of the Act and the Debt Policy, based on the Appraisal, the legislative body of the District hereby determines that the value of the real property within the District subject to the special taxes to pay debt service on the Bonds is not less than four times the principal amount of the Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District, all as calculated in the manner proved in Section 53345.8(a) of the Act.

Section 11. The City Council approves of the financing and hereby finds that significant public benefits exist in undertaking the financing.

Section 12. All conditions precedent to the financing pursuant to the City's policies relating to Mello-Roos Districts have been met or are hereby waived.

Section 13. Each Authorized Officer and the other officers and staff of the City and the District responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions and execute and deliver any and all documents and certificates, including requisitions, tax certificates, insurance or surety policies, reserve instruments, as are necessary to accomplish the issuance, sale and delivery of the Bonds and to consummate the transactions contemplated by each aforesaid agreement. In the event that the Mayor is unavailable to sign 1041
6 any document authorized for execution herein, any Authorized Officer may sign such document.

Any document authorized herein to be signed by the City Clerk may be signed by a duly appointed deputy or assistant city clerk.

Section 14. This resolution shall take effect and be enforceable immediately upon its adoption.

ADOPTED, SIGNED and APPROVED this ____ day of _____, 2026.

MAYOR OF THE CITY OF PERRIS
Attest:

CITY CLERK OF THE CITY OF PERRIS
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7 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §

CITY OF PERRIS )
I, Nancy Salazar, City Clerk of the City of Perris, do hereby certify that the foregoing Resolution Number _____ was duly adopted by the City Council of the City of Perris at a regular meeting of said Council on the __ day of _____, 2026, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:_______________________________________

CITY CLERK
1043
8 Exhibit A
The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the District by Fieldman, Rolapp & Associates, Inc. (the District’s “Municipal Advisor”).

Principal Amount of the Bonds. The Municipal Advisor has informed the District that, based on the District’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $12,350,000 (the “Estimated Principal Amount”).

True Interest Cost of the Bonds. The Municipal Advisor has informed the District that, assuming that the respective Estimated Principal Amount of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 5.61%.

Finance Charge of the Bonds. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is $631,125.

Amount of Proceeds to be Received. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the District for sale of the Bonds, less the finance charge of the Bonds as estimated above, less a debt service reserve fund deposit for the Bonds, paid or funded with proceeds of the Bonds, is $10,484,449.

Total Payment Amount. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the District will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the respective proceeds of the Bonds, calculated to the final maturity of the Bonds, is $26,961,770.

The foregoing estimates constitute good faith estimates only and are based on market conditions prevailing at the time of preparation of such estimates on September 8, 2026. The actual principal amount of the Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates, (b) the actual 1044
9 principal amount of Bonds sold being different from the respective Estimated Principal Amount, (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the District’s financing plan, or a combination of such factors. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the District based on various factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the District. 1045
01006.0120 2163359.4
A-1
ATTACHMENT 5

FISCAL AGENT AGREEMENT
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1006/022/25335 v2
01006.0120 2163359.4

FISCAL AGENT AGREEMENT
by and between
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION
as Fiscal Agent
Dated as of October 1, 2026
Relating to:

Community Facilities District No. 2022-2
(Perris Logistics Center) of the City of Perris
Special Tax Bonds, 2026 Series
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FISCAL AGENT AGREEMENT
THIS FISCAL AGENT AGREEMENT (the “Agreement”) is dated as of October 1, 2026, by and between the Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “District”), a community facilities district organized and existing under and by virtue of the laws of the State of California, and U.S. Bank Trust Company, National Association, a national banking association organized and existing under the laws of the United States of America, as fiscal agent (the “Fiscal Agent”).

W I T N E S S E T H :

WHEREAS, the City Council (the “City Council”) of the City of Perris (the “City”) has formed the District under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the California Government Code) (the “Act”) and Resolution No. 6222 of the City Council adopted on July 25, 2023 (“District”); and
WHEREAS, the City Council is authorized under the Act and pursuant to Ordinance No. 1430 adopted on August 29, 2023 (the “Ordinance”), to levy special taxes to pay for the costs of facilities and authorized fees provided by the District; and WHEREAS, on September 29, 2026, the City Council adopted Resolution No. ___ (the “Resolution”) authorizing, among other items, the issuance and sale of the first series of bonds for the District pursuant to this Agreement, designated “Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series” (the “Bonds”), for the purpose of providing funds to pay for certain public improvements, authorized fees and, to fund a reserve account, and to pay certain the expenses of the District in connection with the issuance of the Bonds; and WHEREAS, the Bonds shall be secured by special taxes levied within the District pursuant to its Rate and Method of Apportionment of Special Taxes for the District (as provided in the Ordinance); and
WHEREAS, it is in the public interest and for the benefit of the City, the District, the persons responsible for the payment of special taxes and the owners of the Bonds that the District enters into this Agreement to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds, and the administration and payment of the Bonds; and WHEREAS, all things necessary to cause the Bonds, when authenticated by the Fiscal Agent and issued as provided in the Act, the Resolution and this Agreement, to be legal, valid and binding and limited obligations in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Agreement and the creation, authorization, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized.

NOW, THEREFORE, in order to secure the payment of the principal of, premium, if any, and the interest on all Bonds at any time issued and outstanding under 1048
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this Agreement, according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the holders thereof, and for other valuable considerations, the receipt of which is hereby acknowledged, the District does hereby covenant and agree with the Fiscal Agent, for the benefit of the respective holders from time to time of the Bonds, as follows:

ARTICLE I

STATUTORY AUTHORITY AND DEFINITIONS

1.1 Authority for this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution.

1.2 Agreement for Benefit of Bond Owners. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the City and the District shall be for the equal benefit, protection and security of the Owners from time to time. In consideration of the acceptance of the Bonds by the Owners thereof, this Agreement shall be deemed to be and shall constitute a contract between the District and the Owners; and the covenants and agreements herein set forth to be performed by the District shall be, for the equal and proportionate benefit, security and protection of all Owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number, or date thereof or the time of sale, execution or delivery thereof, or otherwise for any cause whatsoever, except as expressly provided, therein or herein. All of the Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement.

The Fiscal Agent may become the owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Fiscal Agent.

1.3 Definitions. Unless the context otherwise requires, the terms defined in this Section 1.3 shall, for all purposes of this Agreement, of any Supplemental Agreement, and of any certificate, opinion or other document herein mentioned, have the meanings herein specified. All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof.
“Acquisition Agreement” means the Amended and Restated Acquisition and Funding Agreement, dated as of August 25, 2026, by and among the City, the District and IDI Logistics, LLC, IDIL Perris Logistics Center North 1, L.P., IDIL Perris Logistics Center North, L.P., and IDIL Perris Fulfillment Center L.P. 1049
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“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Section 53311 et seq. of the California Government Code. “Additional Bond(s)” means additional bonds issued pursuant to Section 2.13. “Administrative Expenses” means any or all of the following: the fees and expenses of the Fiscal Agent (including any fees or expenses of its counsel), the expenses of the City, or the District in carrying out their duties (including, but not limited to, the levying and collection of the Special Taxes, complying with the disclosure provisions of the Act, the Continuing Disclosure Agreement and this Agreement, including those related to public inquiries regarding the Special Tax and disclosures to Bond Owners and the Original Purchaser; the costs of the City and the District or their designees related to an appeal of the Special Tax; any costs of the City and the District (including fees and expenses of counsel) to defend the first lien on and pledge of the Special Taxes to the payment of the Bonds and Additional Bonds or otherwise in respect of litigation relating to the District or the Bonds and Additional Bonds or with respect to any other obligations of the District; any amounts required to be rebated to the federal government in order for the District to comply with Section 5.01(h), including the fees and expenses of its counsel; the costs of any dissemination agent under the continuing disclosure agreements entered into by the City and the District; an allocable share of the salaries of City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, and all other costs and expenses of the City, the District or the Fiscal Agent incurred in connection with the discharge of their respective duties hereunder, and in the case of the City, in any way related to the administration of the District and all actual costs and expenses incurred in connection with the administration of the Bonds and Additional Bonds.
“Administrative Expense Fund” means the fund by that name established by Section 3.5(a) hereof.
“Administrative Expense Requirement” means $20,000 plus 102% of the amount of Administrative Expenses expended for the most recent complete Fiscal Year. “Agreement” means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement adopted pursuant to the provisions hereof.
“Annual Debt Service” means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds and Additional Bonds in such Bond Year, assuming that the Outstanding Bonds and Additional Bonds are retired as scheduled, and (ii) the principal amount of the Outstanding Bonds and Additional Bonds due in such Bond Year. “Auditor” means the auditor/tax collector of the County of Riverside. “Authorized Officer” means the City Manager, Assistant City Manager, Finance Director or City Clerk of the City, or any other officer or employee authorized by the 1050
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City Council of the City or by an Authorized Officer to undertake the action referenced in this Agreement as required to be undertaken by an Authorized Officer. “Bond Counsel” means (i) Aleshire & Wynder, LLP, or (ii) any attorney or firm of attorneys acceptable to the District and nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities. “Bond Fund” means the fund by that name established by Section 4.2(a) hereof. “Bond Year” means the one-year period beginning on the September 2 in each year and ending on September 1 in the following year except that the first Bond Year shall begin on the Closing Date and end on September 1, 2027. “Bonds” means the Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series, authorized by, and at any time Outstanding pursuant hereto.
“Business Day” means any day other than (i) a Saturday or a Sunday, (ii) a day on which the offices of the City are not open for business, or (iii) a day on which banking institutions in the state in which the Fiscal Agent has its principal corporate trust office is authorized or obligated by law or executive order to be closed. “CDIAC” means the California Debt and Investment Advisory Commission of the office of the State Treasurer of the State of California or any successor agency or bureau thereto.
“City” means the City of Perris, California.
“City Council” means the City Council of the City.
“City Facilities” means the facilities and authorized fees more particularly described in Exhibit B of the Resolution of Formation, or any portion thereof. “City Manager” means the City Manager of the City.
“Closing Date” means the date upon which there is a physical delivery of the Bonds and/or Additional Bonds in exchange for the amount representing the purchase price of the Bonds and/or Additional Bonds by the Original Purchaser. “Code” means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds. “Continuing Disclosure Agreement” shall mean that certain Continuing Disclosure Agreement, by and between the District and the Dissemination Agent, relating to the Bonds, executed on the Closing Date, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 1051
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“Corporate Trust Office” means the corporate trust office of the Fiscal Agent at Los Angeles, California, provided, however, for transfers, registration, exchange, payment, and surrender of the Bonds, “Corporate Trust Office” means the corporate trust office of the Fiscal Agent in Minneapolis, Minnesota, the “Corporate Trust Office” or such other office designated from time to time by the Fiscal Agent in writing to the District.
“County” means the County of Riverside, California.
“Crossing Project Fee Advance” means the approximate $6.1 million deposit/advance the Developer made to the City pursuant to the Deposit and Reimbursement Agreement by and between the City and the Developer relating to offsite street improvements where Ellis Avenue and Mapes Road intersect. “Debt Service” means the scheduled amount of interest and amortization of principal payable on the Bonds and Additional Bonds, if applicable, during the period of computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. “Depository” means The Depository Trust Company, 140 58th Street, Brooklyn, New York 11220, Attention: Call Notification Department, Fax-(212) 855-7232 and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the District may designate in an Officer's Certificate delivered to the Fiscal Agent. “Dissemination Agent” means Willdan Financial Services or such other Dissemination Agent as may be appointed by the District pursuant to the Continuing Disclosure Agreement.
“District” means the Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris formed pursuant to the Resolution of Formation. “EMWD” means Eastern Municipal Water District.
“EMWD Facilities” means facilities described on Exhibit C-1 of the Joint Community Facilities Agreement and Exhibit B-2 to the Acquisition Agreement. “Facilities” means collectively, the City Facilities and the EMWD Facilities. “Fair Market Value” means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction, except for specified investments as described in section 1.148-5(d)(6) of the Tax Regulations, including United States Treasury obligations, certificates of deposit, guaranteed investment contracts, and investments for yield restricted defeasance escrows. Fair Market Value is generally determined on the date on which a contract to purchase or sell an investment becomes binding, and, to the extent required by the applicable regulations under the Code, the term “investment” will include a hedge. 1052
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“Federal Securities” means any of the following which are non-callable and which at the time of investment are legal investments under the laws of the State of California for funds held by the Fiscal Agent, as shall be certified by the District to the Fiscal Agent:
(1) direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the United States Department of the Treasury) and obligations, the payment of principal of and interest on which are directly or indirectly guaranteed by the United States of America, including, without limitation, such of the foregoing which are commonly referred to as “stripped” obligations and coupons;
(2) any of the following obligations of the following agencies of the United States of America: (a) direct obligations of the Export-Import Bank, (b) certificates of beneficial ownership issued by the Farmers Home Administration, (c) participation certificates issued by the General Services Administration, (d) mortgage-backed bonds or pass-through obligations issued and guaranteed by the Government National Mortgage Association, (e) project notes issued by the United States Department of Housing and Urban Development, and (f) public housing notes and bonds guaranteed by the United States of America; or refunded municipal obligations, the timely payment of principal of and interest on are fully guaranteed by the United States of America.
“Fiscal Agent” means the Fiscal Agent appointed by the District and acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 8.1.
“Fiscal Year” means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive. “Joint Community Facilities Agreement” means the Joint Community Facilities Agreement, dated August 25, 2026, by and among EMWD, the City, IDI Logistics, LLC, IDIL Perris Logistics Center North, L.P., IDIL Perris Logistics Center North 1, L.P., and IDIL Perris Fulfillment Center L.P.
“Improvement Fund” means the fund created pursuant to Section 3.6 hereof. “Interest Payment Date” means March 1 and September 1 of each year, commencing March 1, 2027.
“Investment Earnings” means all interest earned and any gains and losses on the investment of moneys in any fund or account created by this Agreement. “Legislative Body” means the City Council of the City.
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“Moody’s” means Moody’s Rating Services or any successor thereto. “Maximum Annual Debt Service” means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds and Additional Bonds.
“Net Taxes” means Special Taxes less the Administrative Expense Requirement. “Officer's Certificate” means a written certificate of the District or the City signed by an Authorized Officer of the City.
“Ordinance” means any ordinance of the City levying the Special Taxes, including Ordinance No. 1430 adopted by the Legislative Body on August 29, 2023. “Original Purchaser” means Oppenheimer & Co., Inc.
“Outstanding,” when used as of any particular time with reference to Bonds and Additional Bonds, means (subject to the provisions of Section 9.4) all Bonds and Additional Bonds except: (i) Bonds and Additional Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds and Additional Bonds paid or deemed to have been paid within the meaning of Section 10.3; and (iii) Bonds and Additional Bonds in lieu of or in substitution for which other Bonds and Additional Bonds shall have been authorized, executed, issued and delivered by the District pursuant to this Agreement or any Supplemental Agreement. “Owner” or “Bond Owner” means any person who shall be the registered owner of any Outstanding Bond and/or Additional Bonds, as the case may be. “Participants” shall mean those broker-dealers, banks and other financial institutions from time to time for which the Depository holds Bonds as security depository.
“Participating Underwriter” means any of the original underwriter(s) of Bonds required to comply with Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities and Exchange Act of 1934, as the same may be amended from time to time, in connection with the offering of the Bonds. “Permitted Investments” means any of the following which at the time of investment are legal investments under the laws of the State for the moneys proposed to be invested therein (the Fiscal Agent entitled to rely on written investment direction of the District as a determination that such investment is a legal investment), but only to the extent that the same are acquired at Fair Market Value:
(a) Federal Securities;
(b) bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are 1054
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only permitted if they have been stripped by the agency itself): (i) direct obligations or fully guaranteed certificates of beneficial ownership of the U.S. Export-Import Bank; (ii) certificates of beneficial ownership of the Farmers Home Administration; (iii) obligations of the Federal Financing Bank; (iv) debentures of the Federal Housing Administration; (v) participation certificates of the General Services Administration; (vi) guaranteed mortgage-backed bonds or guaranteed pass-through obligations of the Government National Mortgage Association; (vii) guaranteed Title XI financings of the U.S. Maritime Administration; (viii) project notes, local authority bonds, new communities debentures and U.S. public housing notes and bonds of the U.S. Department of Housing and Urban Development;
(c) bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit U.S. government agencies (stripped securities are only permitted if they have been stripped by the District itself):
(i) senior debt obligations of the Federal Home Loan Bank System; (ii) participation certificates and senior debt obligations of the Federal Home Loan Mortgage Corporation; (iii) mortgaged-backed securities and senior debt obligations of the Federal National Mortgage Association (excluding stripped mortgage securities which are valued greater than par on the portion of unpaid principal); (iv) senior debt obligations of the Student Loan Marketing Association; (v) obligations (but only the interest component of stripped obligations) of the Resolution Funding Corporation; and (vi) consolidated systemwide bonds and notes of the Farm Credit System;
(d) money market funds (including funds of the Fiscal Agent or its affiliates) registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of “AAAm-G”, “AAAm”, or “AAm”, and, if rated by Moody’s, rated Aaa, Aa1 or Aa2; (e) certificates of deposit secured at all times by collateral described in (a) or (b) above, which have a maturity of one year or less, which are issued by commercial banks, savings and loan associations or mutual savings banks, and such collateral must be held by a third party, and Fiscal Agent must have a perfected first security interest in such collateral;
(f) certificates of deposit, savings accounts, deposit accounts or money market deposits (including those of Fiscal Agent and its affiliates) which are fully insured by the Federal Deposit Insurance Corporation;
(g) investment agreements, including guaranteed investment contracts, forward purchase agreements and reserve fund put agreements, which are general obligations of an entity whose long term debt obligations, or claims paying ability, respectively, is rated in one of the two highest rating categories by Moody’s or S&P; (h) commercial paper rated, at the time of purchase, “Prime-1” by Moody’s and “A-1” or better by S&P;
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(i) bonds or notes issued by any state or municipality which are rated by Moody’s and S&P in one of the two highest rating categories assigned by such agencies;
(j) federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of “Prime-1” or “A3” or better by Moody’s and “A-1” or “A” or better by S&P; (k) repurchase agreements which provide for the transfer of securities from a dealer bank or securities firm (seller/borrower) to Fiscal Agent and the transfer of cash from Fiscal Agent to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to Fiscal Agent in exchange for the securities at a specified date, which satisfy the following criteria:
(i) repurchase agreements must be between Fiscal Agent and (A) a primary dealer on the Federal Reserve reporting dealer list which falls under the jurisdiction of the Securities Investors Protection Corporation which are rated “A” or better by Moody’s and S&P, or (B) a bank rated “A” or better by Moody’s and S&P; (ii) the written repurchase agreement contract must include the following: (A) securities acceptable for transfer, which may be direct U.S. government obligations, or federal agency obligations backed by the full faith and credit of the U.S. government; (B) the term of the repurchase agreement may be up to 30 days; (C) the collateral must be delivered to Fiscal Agent or a third party acting as agent for Fiscal Agent simultaneous with payment (perfection by possession of certificated securities); (D) Fiscal Agent must have a perfected first priority security interest in the collateral; (E) the collateral must be free and clear of third-party liens and, in the case of a broker which falls under the jurisdiction of the Securities Investors Protection Corporation, are not subject to a repurchase agreement or a reverse repurchase agreement; (F) failure to maintain the requisite collateral percentage, after a two day restoration period, will require Fiscal Agent to liquidate the collateral; (G) the securities must be valued weekly, marked-to-market at current market price plus accrued interest and the value of collateral must be equal to 104% of the amount of cash transferred by Fiscal Agent to the dealer bank or securities firm under the repurchase agreement plus accrued interest (unless the securities used as collateral are obligations of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, in which case the collateral must be equal to 105% of the amount of cash transferred by Fiscal Agent to the dealer bank or securities firm under the repurchase agreement plus accrued interest). If the value of securities held as collateral falls below 104% of the value of the cash transferred by Fiscal Agent, then additional cash and/or acceptable securities must be transferred; and (iii) a legal opinion must be delivered to Fiscal Agent to the effect that the repurchase agreement meets guidelines under state law for legal investment of public funds; and
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(l) the Local Agency Investment Fund of the State of California, created pursuant to Section 16429.1 of the California Government Code, to the extent Fiscal Agent is authorized to register such investment in its name. “Person” means an individual, corporation, firm, association, partnership, trust, or other legal entity or group of entities, including a governmental entity or any agency or political subdivision thereof.
“Principal Account” means the account by that name established in the Bond Fund pursuant to Section 4.2 hereof.
“Qualified Reserve Account Credit Instrument” means an irrevocable standby or direct pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Fiscal Agent pursuant to Section 4.2(c), provided that all of the following requirements are met at the time of acceptance thereof by the Fiscal Agent: (a) the long-term credit rating of such bank or insurance company is “A” or better from each rating agency which then maintains a rating on the Bonds, or if no rating Agency is rating the Bonds, a long term credit rating in the second highest category of rating (without regard to + or _) of S&P or Moody’s; (b) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to Section 4.2(c); and (d) the Fiscal Agent is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Bond Fund for the purpose of making payments required pursuant to Section 4.2. “Record Date” means the fifteenth day of the month next preceding the month of the applicable Interest Payment Date.
“Redemption Revenues” “means (a) any amounts transferred for the optional redemption of Bonds and Additional Bonds, (b) amounts transferred from the Surplus Fund for the redemption of Bonds or Additional Bonds, and (c) any amounts deposited for the Special Mandatory Redemption from Prepayment of Special Taxes. Sinking payments are not included in Redemption Revenues.
“Registration Books” means the records maintained by the Fiscal Agent pursuant to Section 2.9 for the registration and transfer of ownership of the Bonds. “Reserve Account” means the account by that name established by Section 4.2(c) hereof.
“Reserve Requirement” means, as of any date of calculation, with respect to the Bonds secured by the applicable Reserve Fund or account therein, the least of: (a) Maximum Annual Debt Service on such Bonds; (b) ten percent (10%) of the original principal amount of such Bonds; or (c) one hundred twenty-five percent (125%) of the average Annual Debt Service on such Bonds; provided, however, that the Reserve Requirement shall not exceed the maximum amount permitted to be funded from proceeds of tax-exempt obligations and invested without yield restriction under the Code. 1057
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Upon the issuance of any Additional Bonds, the Issuer may provide in the Supplemental Indenture authorizing such Additional Bonds that: (i) the Additional Bonds shall be secured by the existing Reserve Fund, in which event the Reserve Requirement shall be recalculated to include the Additional Bonds and the amount required to satisfy the increased Reserve Requirement shall be deposited into the Reserve Fund in connection with the issuance of such Additional Bonds; or (ii) the Additional Bonds shall be secured by a separate reserve fund or account established for such Additional Bonds, in which event the reserve requirement for such separate reserve fund or account shall be calculated in accordance with the formula set forth above based solely upon the Bonds secured by such separate reserve fund or account.

The Reserve Requirement applicable to any Reserve Fund or separate reserve fund or account shall not thereafter exceed the Reserve Requirement established for such fund or account on the date of issuance of the Bonds initially secured thereby, as increased, in the case of a common Reserve Fund, on the date of issuance of any Additional Bonds subsequently secured thereby.
“Resolution” means Resolution No. ____ adopted by the Legislative Body on September 29, 2026, as now in effect or as it may hereafter be amended from time to time, and any resolution adopted by the Legislative Body with respect to a series of Additional Bonds, as such resolution is in effect or may be amended from time to time. “Resolution of Formation” means Resolution No. 6222 adopted by the Legislative Body on July 25, 2023, as now in effect or as it may hereafter be amended from time to time.
“RMA” means the Rate and Method of Apportionment of the Special Tax for the District.
“S&P” means S&P Rating Services, a Standard & Poor’s Financial Services LLC business, and its successors.
“Second Series of Bonds” means the first issuance of Additional Bonds. “Special Tax Fund” means the fund by that name established by Section 3.4(a) hereof.
“Special Taxes Receipt Fund” means the fund by that name established by Section 3.4(a) hereof.
“Special Tax Revenues” means the proceeds of the Special Taxes received by the District, including any scheduled payments and any prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes. Notwithstanding the foregoing, “Special Tax Revenues” does not include any penalties or interest in excess of the interest payable on the Bonds or Additional Bonds collected in connection with delinquent Special Taxes. 1058
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“Special Taxes” means the special taxes levied within the District pursuant to the Act, the Ordinance and this Agreement.
“State” means the State of California.
“Supplemental Agreement” means an agreement the execution of which is authorized by a resolution which has been duly adopted by the Legislative Body of the District under the Act and which agreement is amendatory of or supplemental to this Agreement, but only if and to the extent that such agreement is specifically authorized hereunder.
“Surplus Fund” means the fund of that name established by Section 3.8 hereof. “Tax Certificate” means, with respect to the Bonds, the Tax Certificate, dated the date of issuance of the Bonds, as originally executed and as it may from time to time be amended or supplemented pursuant to its terms.
“Treasurer” means the person who is acting in the capacity as treasurer or finance director to the City.

ARTICLE II

THE BONDS

2.1 Principal Amounts; Designations. Bonds in the aggregate principal amount of___________ ($____) are hereby authorized to be issued by the City for the District under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The Bonds shall be generally designated “Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series.” The Bonds may be issued as from time to time shall be established and authorized by the District, subject to the covenants, provisions and conditions herein contained. This Agreement constitutes a continuing agreement of the District with the Owners from time to time of the Bonds to secure the full payment of the principal of, premium, if any, and interest on all such Bonds subject to the covenants, provisions and conditions herein contained.

2.2 Terms of Bonds.
(a) Form; Denominations. The Bonds are hereby created and additionally designated as “Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series.” The Bonds shall be issued as fully registered bonds without coupons in the denomination of $5,000 or any integral multiple thereof. The Bonds shall be lettered and numbered in a customary manner as determined by the Fiscal Agent.
(b) Date of the Bonds. The Bonds shall be dated the Closing Date. (c) [Reserved].
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(d) Maturities, Interest Rates. The Bonds shall mature on the dates and shall bear interest at the rates as follows:

Maturity Date
September 1
Principal
Amount Coupon
$
*maturity
(e) Interest. The Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated after a Record Date and on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it shall bear interest from such Interest Payment Date, or (ii) it is authenticated on or before February 15, 2026, in which event it shall bear interest from the Closing Date, or (iii) interest with respect to any Outstanding Bond is in default, in which event interest with respect thereto will be payable from, the date to which interest has previously been paid or made available for payment thereon.
(f) Method of Payment. Interest on the Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at such registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds.

The principal of the Bonds and any premium on the Bonds are payable in lawful money of the United States of America upon surrender of the Bonds at the Corporate Trust Office of the Fiscal Agent.

All Bonds paid by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds.

2.3 Redemption
(a) Redemption Dates.
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(i) Optional Redemption. The Bonds maturing on and after September 1, ___ are subject to redemption prior to maturity at the option of the District on any Interest Payment Date on or after September 1, ____, as a whole or in part, from such maturities as selected by the District and by lot within a maturity, from any available source of funds at the following redemption prices, expressed as a percentage of the principal amount of the Bonds to be redeemed, together with accrued interest to the date of redemption:

Redemption Dates Redemption
Price
September 1, 2033 and March 1, 2034 103%
September 1, 2034 and March 1, 2035 102
September 1, 2035 and March 1, 2036 101
September 1, 2036 and any Interest Payment Date
thereafter
100
(ii) Special Mandatory Redemption From Prepayment of
Special Taxes and Surplus Funds. The Bonds are subject to mandatory redemption prior to maturity on any Interest Payment Date on or after March 1, 2026, in whole or in part from such maturities as selected by the District and by lot within a maturity, from the redemption of the Bonds from amounts constituting prepayments of Special Taxes, from amounts transferred from the Surplus Funds held under the Fiscal Agent Agreement at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed) together with accrued interest thereon to the redemption date:

Redemption Dates Redemption
Price
March 1, 2027 through March 1, 2034 103%
September 1, 2034 and March 1, 2035 102
September 1, 2035 and March 1, 2036 101
September 1, 2036 and any Interest Payment Date
thereafter
100
(iii) Mandatory Sinking fund Redemption. The Bonds are
subject to mandatory redemption, in part by lot, on September 1 in each year, commencing September 1, ____ with respect to Bonds maturing September 1, ____, commencing September 1, ___ with respect to Bonds maturing September 1, ____, September 1, ____ with respect to Bonds maturing September 1, ____, and September 1, _____ with respect to Bonds maturing 2056, from mandatory sinking payments pursuant to this Agreement at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption in the aggregate principal amounts and on September 1 in the respective years as set forth in the following schedule; provided, however, that if some but not all of the Bonds have been redeemed pursuant to optional redemption, special mandatory redemption from prepayment of Special Taxes or special mandatory redemption provisions as described herein, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking 1061
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payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000 as determined by the District.

SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS
TERM BONDS MATURING SEPTEMBER 1____
September 1
Year
Principal Amount
TERM BONDS MATURING SEPTEMBER 1, _____
September 1
Year
Principal Amount
*maturity
(b) Notice to Fiscal Agent. The District shall give the Fiscal Agent written notice of its intention to redeem Bonds pursuant to subsection (a)(i) not less than sixty (60) days prior to the applicable redemption date, unless such notice shall be waived by the Fiscal Agent. Notwithstanding any provisions in this Agreement to the contrary, upon any Special Mandatory Redemption from Special Taxes in part, the District shall deliver an Officer's Certificate to the Fiscal Agent at least sixty (60) days prior to the proposed redemption date or such later date as shall be acceptable to the Fiscal Agent so stating that the remaining payments of principal and interest on the Bonds, together with Special Taxes to be available, will be sufficient on a timely basis to pay debt service on the Bonds, as demonstrated in a cash flow certificate delivered to the Fiscal Agent with such Officer's Certificate.
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The District shall in such Officer's Certificate certify to the Fiscal Agent that sufficient moneys for purposes of such redemption are or will be on deposit in the Revenue Fund and is required to deliver such moneys to the Fiscal Agent together with other Special Tax Revenues, if any, then to be delivered to the Fiscal Agent pursuant to this Agreement, which moneys are required to be identified to the Fiscal Agent in the Officer's Certificate delivered with the Special Tax Revenues. (c) Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books in the Corporate Trust Office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds.

Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the Bond numbers of the Bonds to be redeemed or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called in part the principal amount thereof to be redeemed, and shall require that such Bonds be then surrendered at the Corporate Trust Office of the Fiscal Agent for redemption at the said redemption price, and shall state that further interest on such Bonds will not accrue from and after the redemption date. The cost of mailing any such redemption notice and any expenses incurred by the Fiscal Agent in connection therewith shall be paid by the District.

The District shall have the right to rescind any notice of optional redemption by written notice to the Fiscal Agent on or prior to the date fixed for redemption. Any notice of such redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default hereunder. The District and the Fiscal Agent shall have no liability to the Owners or any other party related or arising from such rescission of redemption. The Fiscal Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

Whenever provision is made in this Agreement for the redemption of less than all of the Bonds or any given portion thereof, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof not previously called for redemption, among maturities as specified by the District in a written certificate delivered 1063
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to the Fiscal Agent, and by lot within a maturity in any manner which the District in its sole discretion shall deem appropriate and fair. In providing such certificate, the District shall provide for the redemption of Bonds such that the remaining Debt Service payable on the Bonds shall remain as level as possible.

Upon surrender of Bonds redeemed in part only, the District shall execute and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the District, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds
(d) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on, or after the redemption date specified in such notice.

All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section

2.3 shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds.
(e) Partial Redemption. If in the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the City will execute, on behalf of the District, and the Fiscal Agent will authenticate and deliver to the Bond Owner thereof, at the expense of the District, a new Bonds or Bonds of the same series and maturity date, of authorized denominations in an aggregate principal amount equal to the unredeemed portion of the Bond to be redeemed.

2.4 Form of Bonds. The Bonds, the form of Fiscal Agent’s certificate of authentication and the form of assignment to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act.

2.5 Execution of Bonds. The Bonds shall be executed on behalf of the District by the manual or facsimile signatures of the Mayor, and City Clerk, who are in office on the date of adoption of this Agreement or at any time thereafter. Unless otherwise provided in any Supplemental Agreement with respect to the Bonds, the Bonds shall then be delivered to the Fiscal Agent for authentication. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the owner. Any Bond may be signed and attested on behalf of the District by such persons as at the actual date of the execution of such Bond shall be the proper officers of the District although at the nominal date of such Bond any such person shall not have been such officer of the District. 1064
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Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered hereunder have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement.

2.6 Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.8 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in form approved by the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the District. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer.

No transfers of Bonds shall be required to be made (i) fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between the 15th day of the month next preceding any Interest Payment Date and such Interest Payment Date.

2.7 Exchange of Bonds. Bonds may be exchanged at the Corporate Trust Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the District. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange.

No exchanges of Bonds shall be required to be made (i) fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption or (iii) between the 15th day of the month next preceding any Interest Payment Date and such Interest Payment Date.

2.8 Bond Register. The Fiscal Agent will keep or cause to be kept, at its Corporate Trust Office sufficient books for the registration and transfer of the Bonds which books shall show the series number, date, amount, rate of interest and last known owner of each Bond and shall at all times be open to inspection by the District or the City during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided.
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The District and the Fiscal Agent will treat the Owner of any Bond whose name appears on the Bond register as the absolute Owner of such Bond for any and all purposes, and the District and the Fiscal Agent shall not be affected by any notice to the contrary. The District and the Fiscal Agent may rely on the address of the Bond Owner as it appears in the Bond register for any and all purposes.

2.9 Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such authorized denominations as may be determined by the District, and may contain such reference to any of the provisions of this Agreement as may be appropriate. Every temporary Bond shall be executed by the District upon the same conditions and in substantially the same manner as the definitive Bonds. If the District issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Corporate Trust Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary bonds shall be entitled to the same benefits under this Agreement as definitive Bonds authenticated and delivered hereunder.

2.10 Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the District, at the expense of the Owner of said Bond, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to the District. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity for the District and the Fiscal Agent satisfactory to the Fiscal Agent shall be given, the District, at the expense of the Owner, shall execute, and the Fiscal Agent shall authenticate and deliver a new Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The District may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section and of the expenses which may be incurred by the District and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the District whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement.

2.11 Limited Obligation. All obligations of the District under this Agreement and the Bonds shall be special obligations of the District, payable solely from the Special Tax Revenues and the funds pledged therefor hereunder. Neither the faith and credit nor 1066
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the taxing power of the District (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds.

2.12 No Acceleration. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section shall in any way prohibit the prepayment or redemption of Bonds under Section 2.3 hereof, or the defeasance of the Bonds and discharge of this Agreement under Section 10.3 hereof.

2.13 Additional Bonds. The District may at any time after the issuance and delivery of the Bonds hereunder issue Additional Bonds payable from the Special Tax Revenues and other amounts deposited in the Special Tax Fund and secured by a lien and charge upon such amounts equal to the lien and charge securing the Outstanding Bonds and any other Additional Bonds theretofore issued hereunder or under any Supplemental Fiscal Agent Agreement; provided, however, that Additional Bonds, may only be issued subject to the following specific conditions, which are made conditions precedent to the issuance of any such Additional Bonds:
(a) The District shall be in compliance with all covenants set forth in this Fiscal Agent Agreement and any Supplemental Fiscal Agent Agreement then in effect and a certificate of the District to that effect shall have been filed with the Fiscal Agent; provided, however, that Additional Bonds may be issued notwithstanding that the District is not in compliance with all such covenants so long as immediately following the issuance of such Additional Bonds the District will be in compliance with all such covenants. (b) The issuance of Additional Bonds shall have been duly authorized pursuant to the Act and all applicable laws, and the issuance of such Additional Bonds shall have been provided for by a Supplemental Fiscal Agent Agreement duly adopted by the District which shall specify the following:
(i) the purpose for which such Additional Bonds are to be issued and the fund or funds into which the proceeds thereof are to be deposited; (ii) the authorized principal amount of such Additional Bonds; (iii) the date, the interest payment dates, and the maturity date or dates of such Additional Bonds; provided that (i) each interest payment date shall fall on a March 1 or September 1 and (ii) each maturity date shall fall on a September 1; (iv) the description of the Additional Bonds, the place of payment thereof and the procedure for execution and authentication; (v) the denominations and method of numbering of such
Additional Bonds;
(vi) the amount and due date of each mandatory sinking fund payment, if any, for such Additional Bonds;
(vii) the amount, if any, to be deposited from the proceeds of such Additional Bonds in the Reserve Account of the Special Tax Fund to increase the amount 1067
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therein to the Reserve Requirement, provided that if the interest on such Additional Bonds is intended by the District to be excluded from the gross income of the recipients thereof for federal income tax purposes, such amount shall not exceed the maximum amount of proceeds that, in the opinion of Bond Counsel, can be so deposited without causing the interest on such Additional Bonds to be included in the gross income of the recipients thereof for federal income tax. Alternatively, the Additional Bonds may be secured by a Reserve Account separate from the Bonds and in the amount of the Reserve Requirement; (viii) the form of such Additional Bonds; and
(ix) such other provisions as are necessary or appropriate and not inconsistent with this Fiscal Agent Agreement.

The Fiscal Agent shall have received the following documents, all dated or certified, as the case may be, as of the date of delivery of such Additional Bonds:
(i) a certified copy of the Supplemental Fiscal Agent Agreement authorizing the issuance of such Additional Bonds;
(ii) a written request of the District as to the delivery of such Additional Bonds;
(iii) an opinion of Bond Counsel and/or general counsel to the District to the effect that (i) the District has the right and power under the Act to adopt the Supplemental Fiscal Agent Agreement relating to such Additional Bonds, and the Supplemental Fiscal Agent Agreement has been duly and lawfully adopted by the District, is in full force and effect and is valid and binding upon the District and enforceable in accordance with its terms (subject to the usual and customary exceptions); (ii) the Fiscal Agent Agreement creates the valid pledge which it purports to create of the Special Tax Revenues and other amounts as provided in the Fiscal Agent Agreement, subject to the application thereof to the purposes and on the conditions permitted by the Fiscal Agent Agreement; and (iii) such Additional Bonds are valid and binding limited obligations of the District, enforceable in accordance with their terms (subject to the usual and customary exceptions) and the terms of the Fiscal Agent Agreement and all Supplemental Fiscal Agent Agreements thereto and are entitled to the benefits of the Fiscal Agent Agreement and all such Supplemental Fiscal Agent Agreements, and such Additional Bonds have been duly and validly authorized and issued in accordance with the Act (or other applicable laws) and the Fiscal Agent Agreement and all such Supplemental Fiscal Agent Agreements; and a further opinion of Bond Counsel to the effect that, assuming compliance by the District with certain tax covenants, the issuance of the Additional Bonds will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds and any Additional Bonds theretofore issued on a tax exempt basis, or the exemption from State of California personal income taxation of interest on any Outstanding Bonds and Additional Bonds theretofore issued;
(iv) a certificate of the District stating that the requirements in this Section 2.13 for the issuance of Additional Bonds have been complied with and satisfied; 1068
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(v) if the Additional Bonds are for refunding purposes, a certificate from an Independent Financial Consultant to the effect that Annual Debt Service in each Bond Year after the issuance of such Additional Bonds will be less than Annual Debt Service would have been prior to the issuance of such Additional Bonds in each Bond Year in which such Additional Bonds will remain Outstanding; and (vi) if the Additional Bonds are for new money purposes, the following shall apply:
(a) Value-to-Lien Ratio. The aggregate value of the taxable property within the District, as shown in an appraisal prepared by an Independent Appraiser not more than six months before the date of issuance of the Additional Bonds, shall be at least five times the aggregate principal amount of: (i) the Bonds then Outstanding; (ii) the Additional Bonds proposed to be issued; and (iii) any other outstanding land-secured indebtedness payable from or secured by special taxes or assessments levied on property within the District.
(b) Special Tax Delinquencies. No Special Tax levied on property within the District shall have been delinquent at any time during the eighteen [18]-month period immediately preceding the date of issuance of the Additional Bonds. For purposes of this subsection, a Special Tax shall be considered delinquent if it remains unpaid after the date on which the applicable installment becomes delinquent under applicable law, without regard to any subsequent payment, redemption, or cure.
(c) South-Side Building Permits. At least two building permits shall have been issued for vertical construction on property located within the southern portion of the District and identified as Assessor’s Parcel Numbers [], [],. Each such building permit must authorize construction of a commercial or industrial building and must remain in full force and effect as of the date of issuance of the Additional Bonds.

Compliance with the conditions set forth above shall be evidenced by an Officer’s Certificate delivered to the Trustee before the issuance of the Additional Bonds. The Officer’s Certificate shall be accompanied by: (i) the appraisal required by subsection (a); (ii) a certificate of the official responsible for the collection of the Special Taxes confirming compliance with subsection (b); and (iii) copies of the building permits, or a certificate of the applicable building official confirming the issuance and continuing effectiveness of the building permits, required by subsection (c). (vii) such further documents, money and securities as are required by the provisions of this Fiscal Agent Agreement and the Supplemental Fiscal Agent Agreement providing for the issuance of such Additional Bonds

2.14 Book-Entry System. The Bonds shall be initially delivered in the form of a separate single fully registered Bond (which may be typewritten) for each maturity.

Upon initial delivery, the ownership of each such Bond shall be registered in the Bond 1069
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Register in the name of the Nominee as nominee of the Depository. Except as provided in Section 2.14, all of the Outstanding Bonds shall be registered in the Bond Register in the name of the Nominee.

With respect to Bonds registered in the Bond Register in the name of the Nominee, the District and the Fiscal Agent shall have no responsibility or obligation to any Participant or to any Person on behalf of which such Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the District and the Fiscal Agent shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other Person, other than an Owner as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository and its Participants of the beneficial interests in the Bonds to be redeemed in the event the Bonds are redeemed in part, or (iv) the payment to any Participant or any other Person, other than an Owner as shown in the Bond Register, of any amount with respect to principal of, premium, if any, or interest due with respect to the Bonds. The District and the Fiscal Agent may treat and consider the Person in whose name each Bond is registered in the Bond Register as the holder and absolute owner of such Bond for the purpose of payment of the principal of, premium, if any, and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever.

The Fiscal Agent shall pay all principal of, premium, if any, and interest due on the Bonds only to or upon the order of the respective Owner, as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to satisfy and discharge fully the District’s obligations with respect to payment of the principal, premium, if any, and interest due on the Bonds to the extent of the sum or sums so paid. No Person other than an Owner, as shown in the Bond Register, shall receive a Bond evidencing the obligation of the District to make payments of principal, premium, if any, and interest pursuant to this Fiscal Agent Agreement. Upon delivery by the Depository to the Fiscal Agent and the District of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Fiscal Agent Agreement shall refer to such new nominee of the Depository.

2.15 Representation Letter. In order to qualify the Bonds which the District elects to register in the name of the Nominee for the Depository’s book-entry system, an authorized representative of the District is hereby authorized to execute from time to time and deliver to such Depository the Representation Letter. The execution and delivery of the Representation Letter shall not in any way limit any covenants herein or in any other way impose upon the District or the Fiscal Agent any obligation whatsoever with respect to persons having interests in the Bonds other than the Owners, as shown in the Bond Register. The District agrees to take all action reasonably necessary to continuously comply with all representations made by it in the Representation Letter. In addition to the execution and delivery of the Representation Letter, the Authorized Officers of the 1070
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City are hereby authorized to take any other actions, not inconsistent with this Fiscal Agent Agreement, to qualify the Bonds for the Depository’s book-entry program.

2.16 Transfers Outside Book-Entry System. In the event (i) the Depository determines not to continue to act as securities depository for the Bonds, or (ii) the District determines that the Depository shall no longer so act, then the District will discontinue the book-entry system with the Depository. If the District fails to identify another qualified securities depository to replace the Depository then the Bonds so designated shall no longer be restricted to being registered in the Bond Register in the name of the Nominee, but shall be registered in whatever name or names Persons transferring or exchanging Bonds shall designate, in accordance with the provisions of Section 2.8 hereof.

2.17 Payments to the Nominee. Notwithstanding any other provisions of this Fiscal Agent Agreement to the contrary, so long as any Bond is registered in the name of the Nominee, all payments with respect to principal, premium, if any, and interest due with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the Representation Letter or as otherwise instructed by the Depository.

2.18 Initial Depository and Nominee. The initial Depository under this Article shall be The Depository Trust Company, New York, New York. The initial Nominee shall be Cede & Co., as Nominee of The Depository Trust Company, New York, New York.

ARTICLE III

ISSUANCE OF BONDS

3.1 Issuance and Delivery of the Bonds. At any time after the execution of this Agreement, the District may issue the Bonds in the aggregate principal amount set forth in Section 2.2 and deliver the Bonds to the Original Purchaser. The Authorized Officers of the District are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of the Bonds in accordance with the provisions of the Act, the Resolution and this Agreement and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser, upon payment of the purchase price for the Bonds.

3.2 Application of Proceeds of Sale of the Bonds On the Closing Date, the total amount of $___, which shall constitute the proceeds of the sale of the Bonds (being the Principal Amount of $____, plus the original net premium of $____, less the underwriter’s discount $____) as follows:
(a) The Fiscal Agent shall deposit $____ into the City’s Facilities Account of the Improvement Fund.
(b) The Fiscal Agent shall deposit $_____ into the Reserve Account of the Bond Fund.
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(c) The Fiscal Agent shall deposit $_____ into the Costs of Issuance Fund.

3.3 Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be dependent upon the completion of the acquisition or refinancing of the Facilities or the Prior Bonds or upon the performance by any person of his obligation with respect to the Facilities.

3.4 Special Tax Fund.
(a) Establishment of Special Tax Fund. The City shall establish a fund known as the “Special Taxes Receipt Fund” (in which it shall create an account for each Community Facilities District within the City and improvement area thereof, including an account for the District). The City shall deposit Special Taxes when received in the account established for the District and immediately thereafter transfer such amounts to the Fiscal Agent for deposit in the Special Tax Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the “Special Tax Fund,” to the credit of which the Fiscal Agent, on behalf of the District, shall deposit, immediately upon receipt, all Special Tax Revenues received by the District or the City on behalf of the District.

Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit of the District and the Owners of the Bonds and Additional Bonds, shall be disbursed as provided below and, pending any disbursement, shall be subject to a lien in favor of the Owners of the Bonds and Additional Bonds.
(b) Disbursements. After depositing an amount of Special Tax Revenues budgeted for Administrative Expenses to the Administrative Expense Fund pursuant to a written direction of the District, no later than ten (10) Business Days prior to each Interest Payment Date, the Fiscal Agent shall withdraw from the Special Tax Fund and transfer to the Bond Fund as follows:
(i) To the Interest Account of the Bond Fund, an amount such that the balance in the Interest Account shall be equal to the installment of interest due on the Bonds and Additional Bonds on said Interest Payment Date. (ii) To the Principal Account of the Bond Fund, an amount such that the balance in the Principal Account shall at least equal the principal payment (including mandatory sinking payments) due on the Bonds on said Interest Payment Date. (iii) To the Reserve Account of the Bond Fund, an amount such that the balance in the Reserve Account is equal to the Reserve Requirement.

Notwithstanding the foregoing, amounts shall be transferred to the Principal Account or the Interest Account from the Special Tax Fund and immediately be paid to the Owners of the Bonds and Additional Bonds in respect of past due payments on the Bonds and Additional Bonds.
(c) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.1. Interest earnings and profits resulting from 1072
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such investment and deposit shall be retained in the Special Tax Fund to be used for the purposes thereof.
(d) Disposition of Surplus. On September 2 of each year, commencing September 2, 2027, the Fiscal Agent shall transfer any amounts remaining in the Special Tax Fund following payment of each disbursement required pursuant to subsection (b) above, to the Surplus Fund.

3.5 Administrative Expense Fund.
(a) Establishment of Administrative Expense Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the “Administrative Expense Fund,” to the credit of which the amount budgeted and levied for Administrative Expenses shall be made. Moneys in the Administrative Expense Fund shall be held in trust by the Fiscal Agent for the benefit of the District, and shall be disbursed as provided below.
(b) Disbursement. Amounts in the Administrative Expense Fund shall be withdrawn by the Fiscal Agent and paid to the District or the City or its order upon receipt by the Fiscal Agent of an Officer’s Certificate stating the amount to be withdrawn, that such amount is to be used to pay an Administrative Expense, and the nature of such Administrative Expense.
(c) Surplus. Annually, at least five (5) days prior to the last day of each Bond Year, the Fiscal Agent shall withdraw any amounts then remaining in the Administrative Expense Fund that have not been allocated to pay Administrative Expenses incurred but not yet paid, and which are not otherwise encumbered or expected to be needed for the purposes of such fund, and transfer such amounts to the Special Tax Fund.
(d) Investment. Moneys in the Administrative Expense Fund shall be invested and deposited in accordance with Section 6.1 hereof. Interest earnings and profits resulting from said investment shall be retained in the Administrative Expense Fund to be used for the purposes of such fund.

3.6 Improvement Fund.
(a) Establishing of Improvement Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the Improvement Fund, to the credit of which a deposit shall be made as required by Section 3.2 hereof and Section 3.8. Moneys in the Improvement Fund shall be held in trust by the Fiscal Agent for the benefit of the City, EMWD and the District and shall be disbursed, except as otherwise provided in subsection (b) of this Section 3.6, for the payment or reimbursement of costs of Facilities.

The Fiscal Agent shall establish, maintain and hold in trust within the Improvement Fund the following separate accounts:
(i) the “City Facilities Account”; and
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(ii) the “EMWD Facilities Account.”
The Fiscal Agent shall deposit into each such account the portion of the proceeds of the Bonds specified in the Closing Memorandum delivered in connection with the issuance of the Bonds and Additional Bonds. Amounts deposited in the City Facilities Account shall be applied solely to the acquisition, construction or reimbursement of the costs of the City Facilities, including authorized fees, and other costs properly allocable to the City Facilities, in each case in accordance with this Agreement and the Acquisition Agreement. Amounts deposited in the EMWD Facilities Account shall be applied solely to the acquisition, construction or reimbursement of the costs of the EMWD Facilities and other costs properly allocable to the EMWD Facilities, in each case in accordance with this Agreement and the Joint Community Facilities Agreement.

The Fiscal Agent shall make disbursements from the City Facilities Account upon receipt of a properly completed requisition signed by an Authorized Officer of the City and otherwise complying with the requirements of this Agreement and the Acquisition Agreement.

The Fiscal Agent shall make disbursements from the EMWD Facilities Account only upon receipt of a properly completed requisition or disbursement request approved by EMWD and otherwise complying with the requirements of this Agreement and the Joint Community Facilities Agreement.

Amounts held in the City Facilities Account and the EMWD Facilities Account shall be separately accounted for and shall not be commingled with one another or with amounts held in any other account or fund established under this Agreement, except for purposes of investment in accordance with this Agreement. The Fiscal Agent shall maintain records sufficient to identify at all times the amounts allocable to each account.

Amounts within the accounts may be transferred to the other account within the Improvement Fund by an Officer’s Certificate so long as the transfer does not conflict with the Acquisition Agreement or Joint Community Facilities Agreement. (b) Disbursement. Disbursements from the Improvement Fund shall be made by the Fiscal Agent upon receipt of an Officer’s Certificate substantially in the form of Exhibit B hereto stating that (1) the conditions to the release of such funds have been satisfied, (2) the name of the person to whom payment is due, (3) the amount to be paid and from which account, (4) the purpose for which the obligation to be paid was incurred, and (5) there has not been filed with or served upon the District notice of any lien, right to lien or attachment, stop notice or claim affecting the right to receive payment of any of the moneys payable to any of the persons named in such certificate or written requisition which has not been released or will not be released simultaneously with the payment of, such obligation, other than materialmen’s or mechanic’s liens accruing by mere operation of law.
(c) Investment. Moneys in the Improvement Fund shall be invested and deposited by the Fiscal Agent in accordance with Section 6.1 hereof. Interest 1074
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earnings and profits from such investment and deposit shall be retained until all Facilities have been fully funded and shall upon closing the Improvement Fund shall be transferred for deposit in the Bond Fund to be used for the purposes of such fund. (d) Closing of Fund. Upon the filing of an Officer’s Certificate executed by the Treasurer stating that all costs of the Facilities have been paid or are not required to be paid from the Improvement Fund, the Fiscal Agent shall transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of Bonds, and the Improvement Fund shall be closed.

3.7 Costs of Issuance Fund. The Fiscal Agent shall establish and maintain a separate fund to be held by the Fiscal Agent known as the “Costs of Issuance Fund” into which shall be deposited the amounts set forth in Section 3.2(b) above or as required by a Supplemental Agreement. The moneys in the Costs of Issuance Fund shall be used to pay Costs of Issuance from time to time upon receipt of an Officer's Certificate of the District. On the date which is one hundred eighty (180) days following the Closing Date, or upon the earlier receipt by the Fiscal Agent of a written request of the District stating that all costs of Issuance have been paid, the Fiscal Agent shall transfer all remaining amounts in the Costs of Issuance Fund to the Improvement Fund, and the Costs of Issuance shall be closed.

3.8 Surplus Fund.
(a) Establishment of Surplus Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the “Surplus Fund,” to the credit of which a deposit shall be made as required by Section 3.4(d) hereof. The moneys in the Surplus Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the District Bonds and Additional Bonds, and shall be disbursed as provided below. (i) The Fiscal Agent shall transfer to the appropriate
accounts within the Bond Fund to pay debt service on the Bonds to the extent Special Taxes are insufficient for such purpose.
(ii) The Fiscal Agent shall transfer from any amounts in the Surplus Fund to the Fiscal Agent to assist in replenishment of the Reserve Account hereunder.
(iii) The Fiscal Agent shall transfer amounts to the
Administrative Expense Fund in an amount determined by the District to pay Administrative Expenses to the extent amounts in the Administrative Expense Fund are insufficient therefore.
(iv) The Fiscal Agent shall transfer amounts in the Surplus Fund to the Pay-Go Fund as provided in Section 3.10 below. (v) After the Pay-Go Fund has been closed in accordance with Section 3.10 below, upon the written direction of the District, the Fiscal Agent shall transfer all remaining amounts in the Surplus Fund to the Special Mandatory Redemption 1075
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Account of the Redemption Fund for redemption of the District Bonds on the next redemption date for which notice of redemption can be timely given, unless the Fiscal Agent has received written direction from the District to expend such remaining funds held in the Surplus Fund for any lawful purposes of the District including, but not limited to, paying costs of public capital improvements or reducing the Special Taxes which are to be levied in the current or the succeeding Fiscal Year upon the properties which are subject to the Special Tax.
(b) Investment. Moneys in the Surplus Fund shall be invested and deposited in accordance with Section 6.1. Interest earnings and profits resulting from said investment shall be retained in the Surplus Fund to be used for the purposes of such fund.

3.9 Redemption Fund.
(a) Establishment of the Redemption Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the “Redemption Fund” (in which there shall be established and created an “Optional Redemption Account” and a Special Mandatory Redemption Account), to the credit of which the District or the City, on behalf of the District, shall deposit, immediately upon receipt, all Redemption Revenues received by the District or the City on behalf of the District. Moneys in the Redemption Fund shall be held in trust by the Fiscal Agent for the benefit of the District and the Owners of the Bonds and Additional Bonds, shall be disbursed as provided below and, pending any disbursement, shall be subject to a lien in favor of the Owners of the Bonds and Additional Bonds.
(b) Disbursement.
(i) All prepayments of Special Taxes and amounts
transferred from the Surplus Fund for the redemption of Bonds and Additional Bonds shall be deposited in the Special Mandatory Redemption Account to be used to redeem Bonds and Additional Bonds on the next date for which notice of redemption can timely be given.
(ii) All optional redemption proceeds, if any shall be
deposited in the Optional Redemption Account to be used to redeem Bonds and Additional Bonds on the next date for which notice of redemption can timely be given. (c) Investment. Moneys in the Redemption Fund shall be
invested and deposited in accordance with Section 6.1. Interest earnings and profits resulting from said investment shall be retained in the Redemption Fund to be used for the purposes of such fund.

3.10 Pay Go Fund. The Fiscal Agent shall establish and maintain a separate fund to be held by the Fiscal Agent known as the “Pay-Go Fund”. The Pay-Go Fund shall be maintained separately from the Improvement Fund, the City Facilities Account, the EMWD Facilities Account and all other accounts, if any, within the Improvement Fund. Amounts held in the Pay-Go Fund shall not be commingled with Bond proceeds or 1076
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other amounts held in the Improvement Fund, except for purposes of investment in accordance with this Agreement, and the Fiscal Agent shall separately account for all deposits to and disbursements from the Pay-Go Fund.
(a) On September 15, 2027, and continuing each September 15 thereafter until the earlier of (i) the date of the issuance of the Second Series of Bonds, or (ii) September 15, 2033, the Fiscal Agent shall transfer from the Surplus Fund to the PayGo Fund all amounts then on deposit in the Surplus Fund and available for transfer under this Agreement. For avoidance of doubt, any amounts in the Surplus Fund on the date of the closing of the Second Series of Bonds shall be transferred to the PayGo Fund in connection with the closing. (b) Amounts deposited in the Pay-Go Fund shall be used solely to reimburse the Developer for the unreimbursed portion of the Crossing Project Fee Advance described in the Acquisition Agreement, or such other authorized fee in connection with an allowed modification pursuant to the Acquisition Agreement. (c) Subject to subsection (d) below, the Fiscal Agent shall disburse amounts from the Pay-Go Fund to the Developer upon receipt of a properly completed requisition from the Developer and Officer Certificate from the City in the form of the Disbursement Request and Officer Certificate attached as Exhibit C hereto.

Amounts in the Pay-Go Fund shall at all times remain subject to the District’s prior right to apply such amounts as provided in subsection (d). (d) Notwithstanding anything herein or in the Acquisition Agreement to the contrary, no amount shall be disbursed from the Pay-Go Fund to the Developer if, at the time a Disbursement Request is submitted or is proposed to be paid, (i) any Special Taxes within the District are delinquent, or (ii) the City or the District reasonably determines that Special Tax delinquencies are expected to occur or that amounts otherwise available to pay Debt Service on the Bonds or Additional Bonds may be insufficient as a result of actual or reasonably anticipated Special Tax delinquencies.

At any time while amounts remain on deposit in the Pay-Go Fund, the City or the District may, but is not required to, direct the Fiscal Agent, by Officer’s Certificate, to transfer all or any portion of the amounts then on deposit in the Pay-Go Fund to the Special Tax Fund, the Bond Fund, the Reserve Account or such other fund or account established hereunder as the City or the District determines is necessary or appropriate to pay or provide for Debt Service, replenish the Reserve Account, or otherwise address actual or reasonably anticipated Special Tax delinquencies within the District. Upon receipt of such Officer’s Certificate, the Fiscal Agent shall make the transfer specified therein without the consent of the Developer.

Any amounts so transferred from the Pay-Go Fund shall cease to be available for reimbursement of the Developer unless and until the City or the District subsequently determines that such amounts are no longer required for such purposes and directs that such amounts be returned to the Pay-Go Fund. The Developer shall have no 1077
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vested right to any amount deposited in the Pay-Go Fund unless and until such amount has been disbursed to the Developer pursuant to subsection (c).

Notwithstanding that amounts in the Pay-Go Fund are not pledged to the payment of the Bonds or Additional Bonds and are not subject to any lien in favor of the Owners, the City or the District may, but is not required to, at any time prior to disbursement to the Developer, direct the Fiscal Agent to transfer all or any portion of the amounts then on deposit in the Pay-Go Fund to the Special Tax Fund, the Bond Fund, the Reserve Account or such other fund or account as the City or the District determines is necessary or appropriate to address actual or reasonably anticipated Special Tax delinquencies or a resulting insufficiency in amounts available to pay Debt Service. The authority granted by this subsection is a contractual right of the City and the District and shall not create any pledge of, lien upon, or enforceable right of any Owner with respect to amounts held in the Pay-Go Fund prior to such transfer. (e) Unless otherwise allowed by the City pursuant to the terms of the Acquisition Agreement, the Pay-Go Fund shall only remain in existence until the Surplus Funds deposited in the Pay-Go Account in connection with issuance of the Second Series of Bonds have been disbursed to the Developer pursuant to its final Disbursement Request seeking reimbursement from the Pay-Go Account.

Immediately after the issuance of the Second Series Bonds:
(i) except for the Surplus Funds transferred to the Pay-Go Fund in connection with the closing of the Second Series of Bonds, no additional amounts shall be transferred from the Surplus Fund to the Pay-Go Fund;
(ii) the Fiscal Agent shall retain moneys in the Pay-Go Fund any amount necessary to pay Disbursement Requests approved before or concurrently with the issuance of the Second Series of Bonds;
(iii) after payment of all such approved Disbursement Requests, the Fiscal Agent shall transfer any remaining balance in the Pay-Go Fund, if any, to the Surplus Fund or as directed in writing by an Authorized Officer of the City; and (iv) Upon completion of the transfers and payments described above, the PayGo Fund shall be closed.

ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND

4.1 Pledge of Special Tax Revenues. The Bonds and Additional Bonds shall be secured by a first pledge (which pledge shall be effected in the manner and to the extent herein provided) of all of the Special Tax Revenues and Redemption Revenues and all moneys deposited in the Bond Fund and, until disbursed, as provided herein, in the Special Tax Fund, the Redemption Fund and the Surplus Fund. The Special Tax Revenues and all moneys deposited into said funds (except as otherwise provided herein) are hereby dedicated to the payment of the principal of, and interest and any premium on the Bonds and Additional Bonds as provided herein and in the Act until all of the Bonds 1078
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and Additional Bonds have been paid and retired, cancelled or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section

10.3. Amounts in the Administrative Expense Fund, the Improvement Fund, the Costs of Issuance Fund and the Pay-Go Fund are not pledged to the repayment of the Bonds and/or Additional Bonds and shall not have any lien in favor of the Owners of the Bonds. The Facilities financed or refinanced with the proceeds of the Bonds and Additional Bonds are not in any way pledged to pay the Debt Service on the Bonds and Additional Bonds. Any proceeds of condemnation or destruction of any Facilities financed or refinanced with the proceeds of the Bonds and Additional Bonds are not pledged to pay the Debt Service on the Bonds and Additional Bonds and are free and clear of any lien or obligation imposed hereunder.

4.2 Bond Fund.
(a) Establishment of Bond Fund. There is hereby established as a separate fund to be held by the Fiscal Agent known as the “Bond Fund” (in which there shall be established and created an Interest Account and a Principal Account) to the credit of which deposits shall be made as required by Sections 3.4(b), 3.6, 3.8, and 3.9, and any other amounts required to be deposited therein by this Agreement, a Supplemental Agreement or the Act. Moneys in the Bond Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds and Additional Bonds, shall be disbursed for the payment of the principal of (including mandatory sinking payments, if any) and interest on the Bonds and Additional Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds and Additional Bonds.
(b) Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Principal Account and the Interest Account and pay to the Owners of the Bonds and Additional Bonds the principal of (including mandatory sinking payments) and interest due on the Bonds and Additional Bonds, respectively; provided that available amounts in the Principal Account and the Interest Account shall first be used to pay any past due installments of principal of (including mandatory sinking payments, if any) and interest on the Bonds and Additional Bonds, respectively.

Notwithstanding the foregoing, amounts transferred to the Principal Account or the Interest Account from the Special Tax Fund constituting delinquent payments of Special Taxes pursuant to Section 3.4(b) hereof shall immediately be paid to the Owners of the Bonds and Additional Bonds in respect of past due payments on the Bonds and Additional Bonds.

Any installment of principal (including mandatory sinking payments, if any) or interest on the Bonds and Additional Bonds which is not paid when due shall accrue interest at the rate of interest on the Bonds and Additional Bonds until paid, and shall be paid whenever funds in the Bond Fund are sufficient therefor. 1079
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(c) Reserve Account. There is hereby established a separate account within the Bond Fund, designated as the “Reserve Account,” to the credit of which a deposit shall be made as required by Section 3.2 hereof. The Reserve Account shall be funded and maintained at the Reserve Requirement. The Fiscal Agent shall establish separate subaccounts in the Reserve Account for the Bonds and the Additional Bonds to the extent the Additional Bonds are secured by a separate Reserve Requirement. In the event that the Fiscal Agent has actual knowledge that the amount on deposit in the Reserve Account at any time becomes less than the Reserve Requirement, the Fiscal Agent shall promptly notify the District of such fact. Promptly upon receipt of any such notice, the District shall transfer to the Fiscal Agent an amount of available Special Tax Revenues sufficient to maintain the Reserve Requirement on deposit in the Reserve Account. Amounts in the Reserve Account shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund, on any date which the principal of or interest on the Bonds becomes due and payable hereunder, in the event of any deficiency at any time in such fund, or at any time for the retirement of all the Bonds then Outstanding. So long as no Event of Default shall have occurred and be continuing, and subject to the next sentence, any amount in the Reserve Account in excess of the Reserve Requirement on the Business Day preceding each Interest Payment Date shall be withdrawn from the Reserve Account by the Fiscal Agent and deposited in the Bond Fund.

The District shall have the right at any time to direct the Fiscal Agent to release funds from the Reserve Account, in whole or in part, by tendering to the Fiscal Agent: (i) a Qualified Reserve Account Credit Instrument, and (ii) an opinion of Bond Counsel stating that neither the release of such funds nor the acceptance of such Qualified Reserve Account Credit Instrument will cause interest on the Bonds to become included in gross income for purposes of federal income taxation. Upon tender of such items to the Fiscal Agent, and upon delivery by the District to the Fiscal Agent of written calculation of the amount permitted to be released from the Reserve Account (upon which calculation the Fiscal Agent may conclusively rely), the Fiscal Agent shall transfer such funds from the Reserve Account to the District to be used for any lawful purposes. The Fiscal Agent shall comply with all documentation relating to a Qualified Reserve Account Credit Instrument as shall reasonably be required to maintain such Qualified Reserve Account Credit Instrument in full force and effect and as shall reasonably be required to receive payments thereunder in the event and to the extent required to make any payment when and as required under this subsection (c). Upon the expiration of any Qualified Reserve Account Credit Instrument, the District shall be obligated either (i) to replace such Qualified Reserve Account Credit Instrument with a new Qualified Reserve Account Credit Instrument, or (ii) to deposit or cause to be deposited with the Fiscal Agent an amount of funds equal to the Reserve Requirement, to be derived from the first available Special Tax Revenues and/or other revenues.

The Reserve Account may be maintained in the form of one or more separate subaccounts which are established for the purpose of holding the proceeds of separate issues of the Bonds in conformity with applicable provisions of the Code. 1080
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(d) Investment. Moneys in the Bond Fund shall be invested and deposited in accordance with Section 6.1 hereof. Interest earnings and profits resulting from the investment and deposit of amounts in the Bond Fund shall be retained in the Bond Fund.

ARTICLE V

OTHER COVENANTS OF THE DISTRICT

5.1 Punctual Payment. The District shall punctually pay or cause to be paid the principal of, and interest and any premium on, the Bonds and Additional Bonds when and as due in strict conformity with the terms of this Agreement and any Supplemental Agreement, and it will faithfully observe and perform all of the conditions, covenants and requirements of this Agreement and all Supplemental Agreements and of the Bonds and Additional Bonds.

5.2 Limited Obligation. The Bonds and Additional Bonds are limited obligations of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts on deposit in the Bond Fund, the Special Tax Fund, the Redemption Fund, and the Surplus Fund, created hereunder, and do not constitute a debt or liability of the City, the State, or of any political subdivision thereof.

5.3 Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the District shall not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and Additional Bonds and shall not, directly or indirectly, be a party to the approval of any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the District, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject to the prior payment in full of the principal of all of the Bonds and Additional Bonds then Outstanding and of all claims for interest which shall not have been so extended or funded. Nothing in this section shall be deemed to limit the right of the District to issue bonds for the purpose of refunding any Outstanding Bonds and Additional Bonds, and such issuance shall not be deemed to constitute an extension of maturity of the Bonds and Additional Bonds.

5.4 Against Encumbrances. The District will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues, or other amounts pledged to the Bonds and Additional Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the Bonds and Additional Bonds, except as permitted by this Agreement.

5.5 Books and Records. The District will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the District, in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Administrative Expense Fund and the Special Tax Fund and relating to the Special Tax Revenues. Such books of record and accounts 1081
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shall at all times during business hours and upon reasonable prior notice be subject to the inspection of the Fiscal Agent (who shall have no duties to inspect) and the Owners of not less than ten percent (10%) of the principal amount of the Bonds and Additional Bonds then Outstanding, or their representatives duly authorized in writing.

The Fiscal Agent will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Fiscal Agent, in which accurate entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Bond Fund and the Costs of Issuance Fund. Such books of record and accounts shall at all times during business hours and upon reasonable prior notice be subject to the inspection of the City, the District and the Owners of not less than ten percent (10%) of the principal amount of the Bonds and Additional Bonds then Outstanding, or their representatives duly authorized in writing.

5.6 Protection of Security and Rights of Owners. The District will preserve and protect the security of the Bonds and Additional Bonds and the rights of the Owners, and will warrant and defend their rights against all claims and demands of all persons.

From and after the delivery of any of the Bonds and Additional Bonds by the District, the Bonds and Additional Bonds shall be incontestable by the District. In furtherance of the foregoing, the District shall not approve any reduction of the Assigned Special Taxes as provided in the RMA which would prohibit the District from levying the Special Taxes in any Fiscal Year at a level that would generate Net Taxes at least equal to 110% of the annual debt service in that Fiscal Year for the Bonds and any Additional Bonds expected to be issued.

5.7 Compliance with Law, Completion of Facilities. The District and the City have complied with all applicable provisions of the Act and law in completing the acquisition and construction of the Facilities.

5.8 Collection of Special Tax Revenues. The District shall comply with all requirements of the Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes.

The Treasurer shall effect the levy of the Special Taxes each Fiscal Year on the parcels within the District in accordance with the RMA, such that the computation of the levy is complete before the final date on which the Auditor will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the next secured tax roll. Upon the completion of the computation of the amounts of the levy, the Treasurer shall prepare or cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the levy of the Special Taxes on the next secured tax roll. The Special Taxes so levied shall be payable and be collected in the same manner and at the same time and in the same installments as the general taxes on real property are payable, and have the same priority, become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property, unless otherwise provided by the District.
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In the event that the Treasurer determines to levy all or a portion of the Special Taxes by means of direct billing of the property owners of the parcels within the District, the Treasurer shall, not less than forty-five (45) days prior to each Interest Payment Date, send bills to the owners of such real property located within the District subject to the levy of the Special Taxes for Special Taxes in an aggregate amount necessary to meet the financial obligations of the District due on the next Interest Payment Date, said bills to specify that the amounts so levied shall be due and payable not less than thirty (30) days prior to such Interest Payment Date and shall be delinquent if not paid when due.

In any event, the Treasurer shall fix and levy the amount of Special Taxes within the District required (i) for the payment of principal of and interest on any Outstanding Bonds and Additional Bonds of the District becoming due and payable during the ensuing year (taking into consideration anticipated delinquencies), and (ii) to pay the Administrative Expenses during such year, all in accordance with the RMA and the Ordinance. The Special Taxes so levied shall not exceed the authorized amounts as provided in the proceedings pursuant to the Resolution of Formation.

The Treasurer is hereby authorized to employ consultants to assist in computing the levy of the Special Taxes hereunder and any reconciliation of amounts levied to amounts received. The fees and expenses of such consultants and the costs and expenses of the Treasurer (including a charge for City or District staff time) in conducting its duties hereunder shall be an Administrative Expense hereunder.

5.9 Further Assurances. The District shall adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Agreement, and for the better assuring and confirming unto the Owners of the rights and benefits provided in this Agreement.

5.10 Tax Covenants.
(a) Special Definitions. When used in this Section, the following terms have the following meanings:
“Computation Date” has the meaning set forth in section 1.148-1(b) of the Tax Regulations.
“Gross Proceeds” means any proceeds as defined in section 1.148-1(b) of the Tax Regulations (referring to sales, investment and transferred proceeds), and any replacement proceeds as defined in section 1.148-1(c) of the Tax Regulations, of the Bonds.
“Investment” has the meaning set forth in section 1.148-1(b) of the Tax Regulations.
“Nonpurpose Investment” means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and that is not acquired to carry out the governmental purposes of that series of Bonds. 1083
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“Rebate Amount” has the meaning set forth in section 1.148-1(b) of the Tax Regulations.
“Tax Regulations” means the United States Treasury Regulations promulgated pursuant to sections 103 and 141 through 150 of the Code, or section 103 of the 1954 Code, as applicable.
“Yield” of any Investment has the meaning set forth in section 1.148-5 of the Tax Regulations; and of any issue of governmental obligations has the meaning set forth in section 1.148-4 of the Tax Regulations.
(b) Not to Cause Interest to Become Taxable. The District covenants that it shall not use, and shall not permit the use of, and shall not omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner that if made or omitted, respectively, could cause the interest on any Bond to fail to be excluded pursuant to section 103(a) of the Code from the gross income of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the Fiscal Agent receives a written opinion of Bond Counsel to the effect that failure to comply with such covenant will not adversely affect such exclusion of the interest on any Bond from the gross income of the owner thereof for federal income tax purposes, the City shall comply with each of the specific covenants in this Section. (c) Private Use and Private Payments. Except as would not cause any Bond to become a “private activity bond” within the meaning of section 141 of the Code and the Tax Regulations, the District shall take all actions necessary to assure that the District or another public agency at all times prior to the final cancellation of the last of the Bonds to be retired:
(i) exclusively owns, operates and possesses all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds and not use or permit the use of such Gross Proceeds (including through any contractual arrangement with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and
(ii) does not directly or indirectly impose or accept any charge or other payment by any person or entity (other than a state or local government) who is treated as using any Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds.
(d) No Private Loan. Except as would not cause any Bond to become a “private activity bond” within the meaning of section 141 of the Code and the Tax 1084
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Regulations and rulings thereunder, the District shall not use or permit the use of Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if: (i) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction that creates a debt for federal income tax purposes; (ii) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; (iii) Gross Proceeds are used to make certain prepayments for goods or services; or (iv) indirect benefits of such Gross Proceeds, or burdens and benefits of ownership of any property acquired, constructed or improved with such Gross Proceeds, are otherwise transferred in a transaction that is the economic equivalent of a loan.
(e) Not to Invest at Higher Yield. Except as would not cause Bonds to become “arbitrage bonds” within the meaning of section 148 of the Code and the Tax Regulations and rulings thereunder, the District shall not (and shall not permit any person to), at any time prior to the final cancellation of the last Bond to be retired, directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, would materially exceed the Yield of the Bonds within the meaning of said section 148.
(f) Not Federally Guaranteed. The District shall not take or omit to take (and shall not permit any person to take or omit to take) any action that would cause any Bond to be “federally guaranteed” within the meaning of section 149(b) of the Code and the Tax Regulations and rulings thereunder.
(g) Information Report. The District shall timely file any information required by section 149(e) of the Code with respect to Bonds with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe.
(h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Tax Regulations:
(i) The District shall account for all Gross Proceeds
(including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Bond is discharged. However, to the extent permitted by law, the District may commingle (and may allow the City to commingle) Gross Proceeds of Bonds with its other moneys, provided that it separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith in accordance with section 1.148- 6(e) of the Tax Regulations.
(ii) Not less frequently than each Computation Date, the District shall calculate the Rebate Amount in accordance with rules set forth in section 1085
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148(f) of the Code and the Tax Regulations and rulings thereunder. The District shall maintain a copy of the calculation with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (iii) In order to assure the excludability pursuant to section 103(a) of the Code of the interest on the Bonds from the gross income of the owners thereof for federal income tax purposes, the District shall pay to the United States the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of the Final Computation Date as defined in section 1.148- 3(e)(2) of the Tax Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, such rebate payments shall be made by the District at the times and in the amounts as are or may be required by section 148(f) of the Code and the Tax Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other, forms and information as is or may be required by section 148(f) of the Code and the Tax Regulations and rulings thereunder for execution and filing by the District.
(i) Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Tax Regulations and rulings thereunder, the District shall not and shall not permit any person to, at any time prior to the final cancellation of the last of the Bonds to be retired, enter into any transaction that reduces the Rebate Amount because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm’s length and had the Yields on the Bonds not been relevant to either party.
(j) Bonds Not Hedge Bonds.
(i) The District represents that none of the Bonds is or will cause the Bonds to become a “hedge bond” within the meaning of section 149(g) of the Code.
(ii) Without limitation of paragraph (i) above: the District believes (upon appropriate investigation) (A) that on the date of issuance of the Bonds the District reasonably expected that at least 85% of the spendable proceeds of the Bonds will be expended within the three-year period commencing on such date of issuance, and (B) no more than 50% of the proceeds of the Bonds will be invested in Nonpurpose Investments having a substantially guaranteed yield for a period of four years or more. (k) Elections. The District hereby directs and authorizes any Authorized Officer to make elections permitted or required pursuant to the provisions of the Code or the Tax Regulations, as such Representative (after consultation with Bond Counsel) deems necessary or appropriate in connection with the Bonds and the Bonds, in the Tax Certificate or similar or other appropriate certificate, form or document. (l) Closing Certificate. The District agrees to execute and deliver in connection with the issuance of the Bonds, a Tax Certificate, or similar document 1086
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containing additional representations and covenants pertaining to the exclusion of interest on the Bonds from the gross income of the owners thereof for federal income tax purposes, which representations and covenants are incorporated as though expressly set forth herein.

5.11 Covenant to Foreclose.

The District will review the public records of the County of Riverside, California, in connection with the collection of the Special Tax not later than July 31 of each year to determine the amount of Special Tax collected in the prior Fiscal Year; and with respect to individual delinquencies, the District will send or cause to be sent a notice of delinquency and a demand for immediate payment thereof to the property owner within 45 days of such determination, and if the District determines that any single property owner subject to the Special Tax is delinquent in the payment of Special Taxes in the aggregate of $50,000 or more delinquent in the payment of three consecutive installments of Special Tax or that the delinquent Special Taxes represent more than 5% of the aggregate Special Taxes levied within the District, or if there has been a draw on the funds on deposit in the Reserve Account established hereunder, and if the delinquency remains uncured, the District will cause judicial foreclosure proceedings to be filed in the superior court within ninety (90) days of the notice to the property owner against all properties for which the Special Taxes remain delinquent. Prior to commencement of any judicial foreclosure proceedings, the District shall continue with its efforts to collect the delinquent Special Taxes by sending subsequent notice of delinquency and a demand for immediate payment thereof.

The City Attorney is hereby authorized to employ counsel to conduct any such foreclosure proceedings. The fees and expenses of any such counsel and costs and expenses of the City Attorney (including a charge for City or District staff time) in conducting foreclosure proceedings shall be an Administrative Expense hereunder.

Notwithstanding any provision of the Act or other law of the State to the contrary, in connection with any foreclosure related to delinquent Special Taxes:
(a) The City, on behalf of the District, or the Fiscal Agent, is hereby expressly authorized to credit bid at any foreclosure sale, without any requirement that funds be placed in the Bond Fund or otherwise be set aside in the amount so credit bid, in the amount specified in Section 53356.5 of the Act, or such less amount as determined under clause (b) below or otherwise under Section 53356.6 of the Act. (b) The District may permit, in its sole and absolute discretion, property with delinquent Special Tax payments to be sold for less than the amount specified in Section 53356.5 of the Act, if it determines that such sale is in the interest of the Bond Owners. The Bond Owners, by their acceptance of the Bonds and Additional Bonds, hereby consent to such sale for such lesser amounts (as such consent is described in Section 53356.6 of the Act), and hereby release the District and the City, and their respective officers and agents from any liability in connection therewith. 1087
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(c) The District is hereby expressly authorized to use amounts in the Special Tax Fund to pay costs of foreclosure of delinquent Special Taxes. (d) The District may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in the District, so long as the District determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds and Additional Bonds under Section 3.4(b) hereof.

5.12 Annual Reports to CDIAC. Not later than October 30 of each year, commencing October 30, 2028 and until the October 30 following the final maturity of the Bonds and Additional Bonds, the Treasurer shall supply the information required by Section 53359.5(b) or (c) of the Act to CDIAC (on such forms as CDIAC may specify) and the District. The District will on or prior to January 31, 2026, and each January 31, thereafter, submit an annual debt transparency report to CDIAC as required by Government Section 8555(k) in the form provided by CDIAC.

5.13 Continuing Disclosure. In addition to its obligations under Section

5.12, the District hereby covenants and agrees to carry out all of its obligations under the Continuing Disclosure Agreement relating to the Bonds. Notwithstanding any other provision of this Agreement, failure of the District to comply with the Continuing Disclosure Agreement(s) shall not be considered a default hereunder; however, any Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel performance by the District of its obligations under this Section 5.12, including seeking mandate or specific performance by court order.

ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS; LIABILITY

OF THE DISTRICT

6.1 Deposit and Investment of Moneys in Funds. Moneys in any fund or account created or established by this Agreement and held by the Fiscal Agent shall be invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer’s Certificate filed with the Fiscal Agent at least two (2) Business Days, in advance of the making of such investments. In the absence of any such Officer’s Certificate, the Fiscal Agent shall invest any such moneys in Permitted Investments described in clause (d) of the definition thereof to the extent practicable which by their terms mature prior to the date on which such moneys are required to be paid out hereunder, or are held uninvested. The Treasurer shall make note of any investment of funds hereunder in excess of the yield on the Bonds or Additional Bonds, as applicable, so that appropriate actions can be taken to assure compliance with Section 5.10 hereof.

Moneys in any fund or account created or established by this Agreement and held by the Treasurer shall be invested by the Treasurer in Permitted Investments, which in any event by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account, subject, however, to the requirements of 1088
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this Agreement for transfer of interest earnings and profits resulting from investment of amounts in funds and accounts. Whenever in this Agreement any moneys are required to be transferred by the District to the Fiscal Agent, such transfer may be accomplished by transferring a like amount of Permitted Investments.

The Fiscal Agent or an affiliate or the Treasurer may act as principal or agent in the acquisition or disposition of any investment and shall be entitled to its customary fee therefor. Neither the Fiscal Agent nor the Treasurer shall incur any liability for losses arising from any investments made pursuant to this Section. For purposes of determining the amount on deposit in any fund or account held hereunder, all Permitted Investments or investments credited to such fund or account shall be valued at the cost thereof (excluding accrued interest and brokerage commissions, if any).

Except as otherwise provided in the next sentence, all investments of amounts deposited in any fund, or account created by or pursuant to this Agreement, or otherwise containing gross proceeds of the Bonds (within the meaning of section 148 of the Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this Agreement or the Code) at Fair Market Value. Notwithstanding the previous sentence, investments in funds or accounts (or portions thereof) that are subject to a yield restriction under the applicable provisions of the Code shall be valued at their present value (within the meaning of section 148 of the Code). The Fiscal Agent shall not be liable for verification of the application of such sections of the Code.

Investments in any and all funds and accounts may be commingled in a separate fund or funds for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Fiscal Agent or the Treasurer hereunder, provided that the Fiscal Agent or the Treasurer, as applicable, shall at all times account for such investments strictly in accordance with the funds and accounts to which they are credited and otherwise as provided in this Agreement.

The Fiscal Agent or the Treasurer, as applicable, shall sell at the highest price reasonably obtainable, or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited and neither the Fiscal Agent nor the Treasurer shall be liable or responsible for any loss resulting from the acquisition or disposition of such investment security in accordance herewith.

6.2 Limited Obligation. The District’s obligations hereunder are limited obligations of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Special Tax Fund and the Bond Fund.

6.3 Liability of District. The District shall not incur any responsibility in respect of the Bonds and Additional Bonds or this Agreement other than in connection with the duties or obligations explicitly herein or in the Bonds and Additional Bonds assigned to or imposed upon it. The District shall not be liable in connection with the 1089
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performance of its duties hereunder, except for its own negligence or willful default. The District shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements of the Fiscal Agent herein or of any of the documents executed by the Fiscal Agent in connection with the Bonds and Additional Bonds, or as to the existence of a default or event of default thereunder.

In the absence of bad faith, the District, including the Treasurer, may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the District and conforming to the requirements of this Agreement. The District, including the Treasurer, shall not be liable for any error of judgment made in good faith unless it shall be proved that it was negligent in ascertaining the pertinent facts.

No provision of this Agreement shall require the City or District to expend or risk its own general funds or otherwise incur any financial liability (other than with respect to the Special Tax Revenues) in the performance of any of its obligations hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

The District may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The District may consult with counsel, who may be the City Attorney, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.

The District shall not be bound to recognize any person as the Owner of a Bond or Additional Bond unless and until such Bond or Additional Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed.

Whenever in the administration of its duties under this Agreement the District shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the District, be deemed to be conclusively proved and established by a certificate of the Fiscal Agent, and such certificate shall be full warranty to the District for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the District may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

6.4 Employment of Agents by District or the City. In order to perform their respective duties and obligations hereunder, the City, the District and/or the Treasurer may employ such persons or entities as they deem necessary or advisable. The City, the District and/or the Treasurer shall not be liable for any of the acts or omissions of such 1090
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persons or entities employed by them in good faith hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations, determinations and directions of such persons or entities.

ARTICLE VII

EVENTS OF DEFAULT AND REMEDIES OF BOND OWNERS

7.1 Events of Default. The following events shall be Events of Default:
(a) Failure to pay any installment of principal of any Bonds when and as the same shall become due and payable whether at maturity as therein expressed, by proceedings for redemption or otherwise.
(b) Failure to pay any installment of interest on any Bonds when and as the same shall become due and payable.
(c) Failure by the District to observe and perform any of the other covenants, agreements or conditions on its part in this Agreement or in the Bonds contained, if such failure shall have continued for a period of 60 days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the District by the Fiscal Agent or the Owners of not less than 25% in aggregate principal amount of the Bonds at the time Outstanding; provided, however, if in the reasonable opinion of the District the failure stated in the notice can be corrected, but not within such 60 day period, such failure shall not constitute an Event of Default if corrective action is instituted by the District within such 60 day period and the District shall thereafter diligently and in good faith cure such failure in a reasonable period of time.
(d) Commencement by the District of a voluntary case under Title 11 or other provision of the United States Code or any substitute or successor statute.

7.2 Remedies of Bond Owners. Subject to the provisions of Section 7.8, any Bond Owner shall have the right, for the equal benefit and protection of all Bond Owners similarly situated:
(a) by mandamus, suit, action or proceeding, to compel the District and its officers, agents, or employees to perform each and every term, provision and covenant contained in this Agreement and in the Bonds and Additional Bonds, and to require the carrying out of any or all such covenants and agreements of the District and the fulfillment of all duties imposed upon it by the Act; (b) by suit, action or proceeding in equity, to enjoin any acts or things which are unlawful, or the violation of any of the Bond Owners’ rights; or (c) upon the happening of any Event of Default, by suit, action or proceeding in any court of competent jurisdiction, to require the District and its officers and employees to account as if it and they were the trustees of an express trust. 1091
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7.3 Application of Special Taxes and Other Funds After Default. If an Event of Default shall occur and be continuing, all Special Taxes, including any penalties, costs, fees and other charges accruing under, the Act, and any other funds then held or thereafter received by the Fiscal Agent under any of the provisions of this Agreement shall be applied by the Fiscal Agent as follows and in the following order:
(a) To the payment of any expenses necessary in the opinion of the Fiscal Agent to protect the interest of the Owners of the Bonds and Additional Bonds, and payment of reasonable fees, charges and expenses of the Fiscal Agent (including reasonable fees and disbursements of its counsel) incurred in and about the performance of its powers and duties under this Agreement;
(b) To the payment of the principal of and interest then due with respect to the Bonds and Additional Bonds (upon presentation of the Bonds and Additional Bonds to be paid, and stamping thereon of the payment if only partially paid, or surrender thereof if fully paid) subject to the provisions of this Agreement, as follows:

First: To the payment to the Persons entitled thereto of all installments of interest then due in the order of the maturity of such installments, and, if the amount available shall not be sufficient to pay in full any installment or installments maturing on the same date, then to the payment thereof ratably, according to the amounts due thereon, to the Persons entitled thereto, without any discrimination or preference; and Second: To the payment to the Persons entitled thereto of the unpaid principal of any Bonds and Additional Bonds which shall have become due, whether at maturity or by call for redemption, with interest on the overdue principal at the rate borne by the respective Bonds and Additional Bonds on the date of maturity or redemption, and, if the amount available shall not be sufficient to pay in full all the Bonds and Additional Bonds, together with such interest, then to the payment thereof ratably, according to the amounts of principal due on such date to the Persons entitled thereto, without any discrimination or preference.
(c) Any remaining funds shall be transferred by the Fiscal Agent to the Bond Fund.

7.4 Absolute Obligation of the District. Nothing in Section 7.7 or in any other provision of this Agreement or in the Bonds and Additional Bonds contained shall affect or impair the obligation of the District, which is absolute and unconditional, to pay the principal of and interest on the Bonds and Additional Bonds to the respective Owners of the Bonds and Additional Bonds at their respective dates of maturity, or upon call for redemption, as herein provided, but only out of the Special Taxes and other moneys herein pledged therefor and received by the District or the Fiscal Agent, or affect or impair, the right of such Owners, which is also absolute and unconditional, to enforce such payment by virtue of the contract embodied in the Bonds and Additional Bonds.

7.5 Termination of Proceedings. In case any proceedings taken by any one or more Bond Owners on account of any Event of Default shall have been discontinued 1092
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or abandoned for any reason or shall have been determined adversely to the Bond Owners, then in every such case the District, and the Bond Owners, subject to any determination in such proceedings, shall be restored to their former positions and rights hereunder, severally and respectively, and all rights, remedies, powers and duties of the City, and the Bond Owners shall continue as though no such proceedings had been taken.

7.6 Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Fiscal Agent or to the Owners of the Bonds and Additional Bonds is intended to be exclusive of any other remedy or remedies, and each and every such remedy, to the extent permitted by law, shall be cumulative and in addition to any other remedy given hereunder or now or hereafter existing at law or in equity or otherwise.

7.7 No Waiver of Default. No delay or omission of any Owner of the Bonds and Additional Bonds to exercise any right or power arising upon the occurrence of any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein; and every power and remedy given by this Agreement to the Owners of the Bonds and Additional Bonds may be exercised from time to time and as often as may be deemed expedient.

7.8 Actions by Fiscal Agent as Attorney-in-Fact. Any suit, action or proceeding which any Owner shall have the right to bring to enforce any right or remedy hereunder may be brought by the Fiscal Agent for the equal benefit and protection of all Owners, and the Fiscal Agent is hereby appointed (and the successive respective Owners of the Bonds and Additional Bonds, by taking and holding the same, shall be conclusively deemed so to have appointed it) the true and lawful attorney-in-fact of the Owners for the purpose of bringing any such suit, action or proceeding and to do and perform any and all acts and things for and on behalf of the Owners as a class or classes, as may be necessary or advisable in the opinion of the Fiscal Agent as such attorney-infact.

ARTICLE VIII

THE FISCAL AGENT

8.1 Appointment of Fiscal Agent. U.S. Bank Trust Company, National Association, is hereby appointed Fiscal Agent and paying agent for the Bonds and Additional Bonds. The Fiscal Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent.

Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under the following paragraph of this Section, shall be the successor to such Fiscal Agent without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding.
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So long as there is no Event of Default hereunder, the District may remove the Fiscal Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least Fifty Million Dollars ($50,000,000), and subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 8.1, combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

The Fiscal Agent may at any time resign by giving written notice to the District and by giving to the Owners notice by mail of such resignation. Upon receiving notice of such resignation, the District shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance of appointment by the successor Fiscal Agent.

If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section 8.1 within forty-five (45) days after the Fiscal Agent shall have given to the District written notice or after a vacancy in the office of the Fiscal Agent shall have occurred by reason of its inability to act, the Fiscal Agent or any Bond Owner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.

If, by reason of the judgment of any court, the Fiscal Agent is rendered unable to perform its duties hereunder, all such duties and all of the rights and powers of the Fiscal Agent hereunder shall be assumed by and vest in the Treasurer of the City in trust for the benefit of the Owners. The District covenants for the direct benefit of the Owners that the Treasurer in such case shall be vested with all of the rights and powers of the Fiscal Agent hereunder, and shall assume all of the responsibilities and perform all of the duties of the Fiscal Agent hereunder, in trust for the benefit of the Owners of the Bonds and Additional Bonds.

8.2 Liability of Fiscal Agent. The recitals of facts, covenants and agreements herein and in the Bonds and Additional Bonds contained shall be taken as statements, covenants and agreements of the District, and the Fiscal Agent assumes no responsibility for the correctness of the same, nor makes any representations as to the validity or sufficiency of this Agreement or of the Bonds and Additional Bonds, nor shall incur any responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds and Additional Bonds assigned to or imposed upon it. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds and Additional Bonds.
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In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Fiscal Agent and conforming to the procedural requirements of this Agreement; but in the case of any such certificates or opinions by which any provision hereof are specifically required to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same to determine whether or not they conform to the procedural requirements of this Agreement. Except as provided above in this paragraph, the Fiscal Agent shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement, upon any resolution, order, notice, request, consent or waiver, certificate, statement, affidavit, or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper person or to have been prepared and furnished pursuant to any provision of this Agreement, and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument.

The Fiscal Agent shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements of the City or the District herein or of any of the documents executed by the City or the District in connection with the Bonds and Additional Bonds, or as to the existence of a default or event of default thereunder.

The Fiscal Agent shall not be liable for any error of judgment made in good faith by a responsible officer unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts.

No provision of this Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

The Fiscal Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Owners pursuant to this Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

All indemnifications and releases from liability granted to the Fiscal Agent hereunder shall extend to the directors, officers and employees of the Fiscal Agent.

The Fiscal Agent shall not be considered in breach of or in default in its obligations hereunder or progress in respect thereto in the event of enforced delay (“unavoidable delay”) in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not limited to, Acts of God or of the public enemy or terrorists, acts of a government, acts of the other party, 1095
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fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to procure or general sabotage or rationing of labor, equipment, facilities, sources of energy, material or supplies in the open market, litigation or arbitration involving a party or others relating to zoning or other governmental action or inaction pertaining to the project, malicious mischief, condemnation, and unusually severe weather or delays of suppliers or subcontractors due to such causes or any similar event and/or occurrences beyond the control of the Fiscal Agent.

In no event shall the Fiscal Agent be responsible or liable for special, indirect, consequential, punitive or incidental loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Fiscal Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.

The Fiscal Agent shall have the right to accept and act upon instructions or directions, including funds transfer instructions, pursuant to this Agreement sent by Electronic Means (as hereinafter defined); provided, however, that the Fiscal Agent shall have received an incumbency certificate listing designated persons authorized to provide such instructions (“Authorized Officers”), which incumbency certificate shall be amended whenever a person is to be added or deleted from the listing. As used in this paragraph, “Electronic Means” means a portable document format (“pdf”) or other replicating image attached to an unsecured email, facsimile transmission, secure electronic transmission (containing applicable authorization codes, passwords and/or authentication keys issued by the Fiscal Agent), or another method or system specified by the Fiscal Agent as available for use in connection with its services hereunder. If the parties elects to give the Fiscal Agent instructions by Electronic Means and the Fiscal Agent in its discretion elects to act upon such instructions, the Fiscal Agent’s understanding of such instructions shall be deemed controlling. The parties agrees that the Fiscal Agent cannot determine the identity of the actual sender of such instructions and that the Fiscal Agent shall conclusively presume that instructions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Fiscal Agent have been sent by such Authorized Officer. The parties shall be responsible for ensuring that only Authorized Officers transmit such instructions to the Fiscal Agent, and the parties and the Authorized Officers are responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and authentication keys provided by the Fiscal Agent, if any. The Fiscal Agent shall not be liable for any losses, costs, or expenses arising directly or indirectly from the Fiscal Agent’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction delivered by other means. The parties agrees (i) to assume all risks arising out of the use of such Electronic Means to submit instructions and direction to the Fiscal Agent, including without limitation the risk of the Fiscal Agent acting on unauthorized instructions and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting instructions to the Fiscal Agent and that there may be more secure methods of transmitting instructions than the use of Electronic Means; (iii) that the security procedures (if any) to be followed in connection with its transmission of instructions provide to it a commercially reasonable degree of protection 1096
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in light of its particular needs and circumstances; and (iv) that it will notify the Fiscal Agent immediately upon learning of any compromise or unauthorized use of the security procedures.

All notices, approvals, consents, requests and any communications to the Fiscal Agent hereunder must be in writing in English and must be in the form of a document that is signed manually or by way of an electronic signature (including electronic images of handwritten signatures and digital signatures provided by DocuSign, Orbit, Adobe Sign or any other electronic signature provider acceptable to the Fiscal Agent). Electronic signatures believed by the Fiscal Agent to comply with the ESIGN ACT of 2000 or other applicable law shall be deemed original signatures for all purposes. If the parties chooses to use electronic signatures to sign documents delivered to the Fiscal Agent, such parties agree to assume all risks arising out of its use of electronic signatures, including without limitation the risk of the Fiscal Agent acting on an unauthorized document and the risk of interception or misuse by third parties. Notwithstanding the foregoing, the Fiscal Agent may in any instance and in its sole discretion require that an original document bearing a manual signature be delivered to the Fiscal Agent in lieu of, or in addition to, any document signed via electronic signature.

8.3 Information. The Fiscal Agent shall provide to the District such information relating to the Bonds and Additional Bonds and the funds and accounts maintained by the Fiscal Agent hereunder as the District shall reasonably request, including but not limited to quarterly statements reporting funds held and transactions by the Fiscal Agent.

8.4 Notice to Fiscal Agent. The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Fiscal Agent may consult with counsel, who may be counsel to the District, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.

The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed.

Whenever in the administration of its duties under this Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal Agent, be deemed to be conclusively proved and established by a certificate of the District, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu 1097
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thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

8.5 Compensation, Indemnification. The District shall pay to the Fiscal Agent from time to time reasonable compensation for all services rendered as Fiscal Agent under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Agreement, but the Fiscal Agent shall not have a lien therefor on any funds at any time held by it under this Agreement. The District further agrees, to the extent permitted by applicable law, to indemnify and save the Fiscal Agent, its officers, employees, directors and agents harmless against any liabilities which it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or willful misconduct.

The obligation of the District under this Section shall survive resignation or removal of the Fiscal Agent under this Agreement and payment of the Bonds and Additional Bonds and discharge of this Agreement, but any monetary obligation of the District arising under this Section shall be limited solely to amounts on deposit in the Administrative Expense Fund.

ARTICLE IX

MODIFICATION OR AMENDMENT OF THIS AGREEMENT

9.1 Amendments Permitted. This Agreement and the rights and obligations of the District and of the Owners of the Bonds and Additional Bonds may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote, at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds and Additional Bonds then Outstanding, exclusive of Bonds and Additional Bonds disqualified as provided in Section 9.4. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the District to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the District of any pledge or lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the benefit of the Bonds and Additional Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or (iii) reduce the percentage of Bonds and Additional Bonds required for the amendment hereof. Any such amendment may not modify any of the rights or obligations of the Fiscal Agent without its written consent.

This Agreement and the rights and obligations of the District and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes:
(a) to add to the covenants and agreements of the District in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the District; 1098
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(b) to make modifications not adversely affecting any Outstanding Bonds and Additional Bonds of the District in any material respect; (c) to make such provisions for the purpose of curing any ambiguity, inconsistency or omission of curing, correcting or supplementing any defective provision contained in this Agreement, or in regard to questions arising under this Agreement, as the District and the Fiscal Agent may deem necessary or desirable and not inconsistent with this Agreement, and which shall not adversely affect the rights of the Owners of the Bonds and Additional Bonds in any material respect;
(d) to make such additions, deletions or modifications as may be necessary or desirable to assure the exclusion from gross income for federal income tax purposes of interest on the Bonds or Additional Bonds, as applicable; or (e) to provide for the issuance of Additional Bonds in accordance with the provisions of this Agreement.

9.2 Owners’ Meetings. The District may at any time call a meeting of the Owners. In such event the District is authorized to fix the time and place of said meeting and to provide for the giving of notice thereof, and to fix and adopt rules and regulations for the conduct of said meeting.

9.3 Procedure for Amendment with Written Consent of Owners. The District and the Fiscal Agent may at any time adopt a Supplemental Agreement amending the provisions of the Bonds and Additional Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 9.1, to take effect when and as provided in this Section. A copy of such Supplemental Agreement, together with a request to Owners for their consent thereto, shall be mailed by first class mail by the Fiscal Agent to each Owner of Bonds and Additional Bonds Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as in this Section provided.

Such Supplemental Agreement shall not become effective unless there shall be filed with the Fiscal Agent the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds and Additional Bonds then Outstanding (exclusive of Bonds and Additional Bonds disqualified as provided in Section 9.4) and a notice shall have been mailed as hereinafter in this Section provided.

Each such consent shall be effective only if accompanied by proof of ownership of the Bonds and Additional Bonds for which such consent is given, which proof shall be such as is permitted by Section 10.4. Any such consent shall be binding upon the Owner of the Bonds and Additional Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this Section provided for has been mailed.
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After the Owners of the required percentage of Bonds and Additional Bonds shall have filed their consents to the Supplemental Agreement, the District shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and Additional Bonds and will be effective as provided in this Section (but failure to mail, copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record, consisting of the papers required by this Section 9.3 to be filed with the Fiscal Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise hereinabove specifically provided in this Article) upon the District and the Owners of all Bonds and Additional Bonds at the expiration of sixty (60) days after such filing, except in the event of a final decree of a court of competent, jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such sixty-day period.

9.4 Disqualified Bonds and Additional Bonds. Bonds and Additional Bonds owned or held for the account of the City or the District, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds and Additional Bonds provided for in this Article IX, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article IX.

9.5 Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article IX, this Agreement shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations under this Agreement of the District and all Owners of Bonds and Additional Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes.

9.6 Endorsement or Replacement of Bonds and Additional Bonds Issued After Amendments. The District may determine that Bonds and Additional Bonds issued and delivered after the effective date of any action taken as provided in this Article IX shall bear a notation, by endorsement or otherwise, in form approved by the District, as to such action. In that case, upon demand of the Owner of any Bond or Additional Bond Outstanding at such effective date and presentation of his Bond or Additional Bond for that purpose at the Corporate Trust Office of the Fiscal Agent or at such other office as the District may select and designate for that purpose, a suitable notation shall be made on such Bond or Additional Bond. The District may determine that new Bonds and Additional Bonds, so modified as in the opinion of the District is necessary to conform to such Owners’ action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds and Additional Bonds then Outstanding, such new Bonds and Additional Bonds shall be exchanged at the Corporate Trust Office of the 1100
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Fiscal Agent without cost to any Owner, for Bonds and Additional Bonds then Outstanding, upon surrender of such Bonds and Additional Bonds.

9.7 Amendatory Endorsement of Bonds and Additional Bonds. The provisions of this Article IX shall not prevent any Owner from accepting any amendment as to the particular Bonds and Additional Bonds held by him, provided that due notation thereof is made on such Bonds and Additional Bonds.

9.8 Opinion of Bond Counsel. In connection with any Supplemental Agreement, the Fiscal Agent shall be entitled to receive an opinion of Bond Counsel that any such Supplemental Agreement is authorized or permitted by this Agreement and the Fiscal Agent may conclusively rely upon such opinion.

ARTICLE X

MISCELLANEOUS

10.1 Benefits of Agreement Limited to Parties. Nothing in this Agreement, expressed or implied, is intended to give to any person other than the District, City, the Fiscal Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the District shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent.

10.2 Successor is Deemed Included in All References to Predecessor.

Whenever in this Agreement or any Supplemental Agreement either the District or the Fiscal Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the District or the Fiscal Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not.

10.3 Discharge of Agreement. The District shall have the option to pay and discharge the entire indebtedness on all or any portion of the Bonds and Additional Bonds Outstanding in any one or more of the following ways:
(a) by well and truly paying or causing to be paid the principal of, and interest and any premium on, such Bonds and Additional Bonds Outstanding, as and when the same become due and payable;
(b) by depositing with the Fiscal Agent, in trust, at or before maturity, money which, together with the amounts then on deposit in the funds and accounts provided for in this Agreement is fully sufficient to pay such Bonds and Additional Bonds Outstanding, including all principal, interest and redemption premiums; (c) by irrevocably depositing with the Fiscal Agent, in trust, cash and Federal Securities and/or investments described in clause (i) of the definition of Permitted Investments in such amount as the District shall determine as confirmed by Bond Counsel or an independent certified public accountant will, together with the interest to accrue thereon and moneys then on deposit in the funds and accounts established with the 1101
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Fiscal Agent pursuant to this Agreement, be fully sufficient to pay and discharge the indebtedness on such Bonds and Additional Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates; or (d) by delivering to the Fiscal Agent for cancellation the Bonds outstanding following payment thereof.

If the District shall have taken any of the actions specified in (a), (b), (c) or (d) above, and if such Bonds and Additional Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent shall have been made for the giving of such notice, then, at the election of the District, and notwithstanding that any Bonds and Additional Bonds shall not have been surrendered for payment, the pledge of the Special Taxes and other funds provided for in this Agreement and all other obligations of the District under this Agreement with respect to such Bonds and Additional Bonds Outstanding shall cease and terminate. Notice of such election shall be filed with the Fiscal Agent. Notwithstanding the foregoing, the obligation of the District to pay or cause to be paid to the Owners of the Bonds and Additional Bonds not so surrendered and paid all sums due thereon and all amounts owing to the Fiscal Agent pursuant to Section 8.5, and otherwise to assure that no action is taken or failed to be taken if such action or failure adversely affects the exclusion of interest on the Bonds or Additional Bonds, as applicable, from gross income for federal income tax purposes, shall continue in any event.

Upon compliance by the District with the foregoing with respect to all Bonds and Additional Bonds Outstanding, any funds held by the Fiscal Agent after payment of all fees and expenses of the Fiscal Agent, which are not required for the purposes of the preceding paragraph, shall be paid over to the District and any Special Taxes thereafter received by the District shall not be remitted to the Fiscal Agent but shall be retained by the District to be used for any purpose permitted under the Act.

10.4 Execution of Documents and Proof of Ownership by Owners. Any request, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing.

Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer.

Except as otherwise herein expressly provided, the ownership of registered Bonds or Additional Bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books.
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Any request, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond or Additional Bond in respect of anything done or suffered to be done by the District or the Fiscal Agent in good faith and in accordance therewith.

10.5 Waiver of Personal Liability. No member, officer, agent or employee of the District or the City shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds and Additional Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law.

10.6 Notices to and Demands on District and Fiscal Agent. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Fiscal Agent to or on the District may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the District with the Fiscal Agent) as follows:

Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris
c/o City of Perris
101 North “D” Street
Perris, California 92570
Attn: City Manager
Tel: (951) 943-6100
Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the District to or on the Fiscal Agent may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the Fiscal Agent with the District) as follows:

U.S. Bank Trust Company, National Association
Global Corporate Trust Services
633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attn: Ilse Vlach
Tel: 213/615-6051
Fax: 213/615-6199

10.7 Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The District hereby declares that it would have adopted this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds and Additional Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Agreement may be held illegal, invalid or unenforceable.
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10.8 Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds and Additional Bonds which remains unclaimed for two (2) years after the date when the payments of such principal, interest and premium have become payable, if such money was held by the Fiscal Agent at such date, shall be repaid by the Fiscal Agent to the District as its absolute property free from any trust, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Bond Owners shall look only to the District for the payment of the principal of, and interest and any premium on, such Bonds and Additional Bonds.

10.9 Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California.

10.10 Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement.

10.11 Conclusive Evidence of Regularity. Bonds and Additional Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Special Taxes.

10.12 Payment on Business Day. In any case where the date of the maturity of interest or of principal (and premium, if any) of the Bonds and Additional Bonds or the date fixed for redemption of any Bonds and Additional Bonds or the date any action is to be taken pursuant to this Agreement is other than a Business Day, the payment of interest or principal (and premium, if any) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no interest shall accrue for the period from and after such date.

10.13 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

10.14 Signatures. The parties acknowledge and agree that this Agreement, and any document to be executed pursuant to this Agreement or otherwise relating to the District or the Bonds may be executed or signed electronically, including but not limited to by DocuSign®, by any Person and such electronically executed document shall be effective for all purposes. Delivery of an electronic transmission by facsimile or in electronic (e.g., “pdf” or “tif” or otherwise) format shall be effective as delivery of a manually executed counterpart of this Agreement or any other document referred to above. Any electronically executed or delivered signature shall be of the same legal effect, validity or enforceability as a manually executed signature to the fullest extent permitted under applicable law.
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(PERRIS LOGISTICS CENTER)
IN WITNESS WHEREOF, the District has caused this Agreement to be executed in its name and the Fiscal Agent has caused this Agreement to be executed in its name, all as of October 1, 2026.

COMMUNITY FACILITIES DISTRICT
NO. 2022-2 (PERRIS LOGISTICS

CENTER) OF THE CITY OF PERRIS
By:___________________________
City Manager
U.S. BANK TRUST COMPANY,
NATIONAL ASSOCIATION, as Fiscal
Agent
By:___________________________
Authorized Officer
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EXHIBIT A

FORM OF BOND
No. _________ $___________

UNITED STATES OF AMERICA

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES
INTEREST RATE MATURITY DATE DATED DATE CUSIP NO.

September 1, ___ ________ ________
REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT: DOLLARS
Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “District”), for value received, hereby promises to pay solely from the Special Tax (as hereinafter defined) to be collected within the District or amounts in the funds and accounts held under the Agreement (as hereinafter defined), to the registered owner named above, or registered assigns, on the maturity date set forth above, unless redeemed prior thereto as hereinafter provided, the principal amount set forth above, and to pay interest on such principal amount from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication thereof, unless (a) it is authenticated after a Record Date (as hereinafter defined) and on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event interest with respect thereto will be payable from such Interest Payment Date; (b) it is authenticated on or before February 15, 2027 which event interest with respect thereto will be payable from its Dated Date; or (c) interest with respect to any Outstanding Bond is in default, in which event interest with respect thereto will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date, payable semiannually on March 1 and September 1 in each year, commencing March 1, 2027 (each an “Interest Payment Date”), at the interest rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is payable to the registered owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the Corporate Trust Office of U.S. Bank Trust Company, National Association (the “Fiscal Agent”). Interest on this Bond shall be paid by check of the Fiscal Agent mailed on each Interest Payment Date to the registered owner hereof as of the close of business on the fifteenth day of the month preceding the month in which the interest payment date occurs (the “Record Date”) at such registered owner’s address as it appears on the registration books maintained by the Fiscal Agent. 1106
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This Bond is one of a duly authorized issue of bonds in the aggregate principal amount of $________ approved by legislative body of the District on _______________, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 et seq., of the California Government Code (the “Mello-Roos Act”) for the purpose of refinancing the acquisition of certain facilities (the “Project”), and is one of the Bonds designated “Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series” (the “Bonds”). The creation of the Bonds and the terms and conditions thereof are provided for by the Fiscal Agent Agreement, dated as of October 1, 2026 (the “Agreement”), by and between the District and the Fiscal Agent and this reference incorporates the Agreement herein, and by acceptance hereof the owner of this Bond assents to said terms and conditions. Other than refunding bonds, the District may not issue additional bonds on a parity with the Bonds.

Pursuant to the Mello-Roos Act and the Agreement, the principal of and interest on this Bond are payable solely from the annual special tax authorized under the MelloRoos Act to be collected within the District (the “Special Tax”) and certain funds held under the Agreement.

Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the City, as may be permitted by law.

The Bonds do not constitute obligations of the City of Perris for which said City is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described hereinabove. The District has covenanted for the benefit of the owners of the Bonds that it will order, and cause to be commenced as provided in the Agreement, and thereafter diligently prosecute to judgment, an action in the superior court to foreclose, under the circumstances set forth in the Agreement, the lien of any Special Tax or installment thereof not paid when due.

The Bonds maturing on and after September 1, 2033 are subject to redemption prior to maturity at the option of the District on any Interest Payment Date on or after September 1, 2032, as a whole or in part, from such maturities as selected by the District and by lot within a maturity, from any available source of funds at the following redemption prices, expressed as a percentage of the principal amount of the Bonds to be redeemed, together with accrued interest to the date of redemption:

Redemption Dates Redemption
Price
September 1, 2033 and March 1, 2034 103%
September 1, 2034 and March 1, 2035 102
September 1, 2035 and March 1, 2036 101
September 1, 2036 and any Interest Payment Date
thereafter
100
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The Bonds are subject to mandatory redemption prior to maturity on any Interest Payment Date on or after March 1, 2026, in whole or in part from such maturities as selected by the District and by lot within a maturity, from the redemption of the Bonds from amounts constituting prepayments of Special Taxes, from amounts transferred from the Surplus Funds held under the Fiscal Agent Agreement at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed) together with accrued interest thereon to the redemption date:

Redemption Date Redemption Price
March 1, 2027 through March 1, 2034 103%
September 1, 2034 and March 1, 2035 102
September 1, 2035 and March 1, 2036 101
September 1, 2036 and any Interest Payment Date
thereafter
100
The Bonds are subject to mandatory redemption, in part by lot, on September 1 in each year, commencing September 1, ___with respect to Bonds maturing September 1, ___, commencing September 1, ____ with respect to the Bonds maturing September 1, ____, commencing September 1, ____ with respect to Bonds maturing September 1, ____, commencing September 1, ___ with respect to Bonds maturing September 1, ____, from mandatory sinking payments pursuant to this Agreement at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption in the aggregate principal amounts and on September 1 in the respective years as set forth in the following schedule; provided, however, that if some but not all of the Bonds have been redeemed pursuant to optional redemption, special mandatory redemption from prepayment of Special Taxes or special mandatory redemption provisions as described herein, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000 as determined by the District. 1108
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SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS
TERM BONDS MATURING SEPTEMBER 1, 2040
September 1
Year
Principal Amount
*maturity
TERM BONDS MATURING SEPTEMBER 1, 2045
September 1
Year
Principal Amount
*maturity
Notice of redemption with respect to the Bonds to be redeemed shall be given to the registered owners thereof, in the manner, to the extent and subject to the provisions of the Agreement.

This Bond shall be registered in the name of the owner hereof, as to both principal and interest.

Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon.

Except as provided in the Agreement, any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of the Agreement by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form approved by the Fiscal Agent.

The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the District. The Fiscal Agent shall 1109
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A-5
collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer.

Whenever any Bond or Bonds shall be surrendered for transfer, the District shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount.

No transfers of Bonds shall be required to be made (i) fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between the 15th day of the month next preceding any Interest Payment Date and such Interest Payment Date.

Bonds may be exchanged at the Corporate Trust Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the District. The Fiscal Agent shall collect from the owner of such Bond or Bonds requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange.

No exchanges of Bonds shall be required to be made (i) fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between the 15th day of the month next preceding any Interest Payment Date and such Interest Payment Date.

The Agreement and the rights and obligations of the District thereunder may be modified or amended as set forth therein.

This Bond shall not become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Fiscal Agent.

For as long as a book-entry only system is in effect with respect to the Bonds and DTC or a successor Securities Depository is the sole registered owner of the Bonds, in the event of redemption of less than all of the maturity of the Bonds, the particular ownership interests of such maturity to be redeemed will be determined by DTC and its participants, or by a successor Securities Depository or any other intermediary, in accordance with their respective operating rules and procedures, which may be different than pro rata.

IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this Bond does not exceed any debt limit prescribed by the laws or Constitution of the State of California. 1110
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[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the City of Perris on behalf of Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris has caused this Bond to be dated _______, 2026 to be signed by the manual or facsimile signature of its Mayor and countersigned by the manual or facsimile signature of the City Clerk.

CITY OF PERRIS
BY: ________________________________
Mayor
BY: ________________________________
City Clerk
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FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the Resolution and the Agreement which has been authenticated on ______, 2026.

U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Fiscal Agent
BY: ______________________________________
Authorized Officer
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ASSIGNMENT
For value received, the undersigned do(es) hereby sell, assign and transfer unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond and do(es) hereby irrevocably constitute and appoint ________________ _____________ attorney, to transfer the same on the registration books of the Fiscal Agent, with full power of substitution in the premises.

Dated: __________________ ____________________________________ NOTICE: The signature(s) on this
assignment must correspond with the
name(s) as written on the face of the within
Bond in every particular without alteration
or enlargement or any change whatsoever.

Signature Guaranteed:

NOTICE: Signature(s) must be guaranteed by a member
firm of the New York Stock Exchange or a
commercial bank or trust company.
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EXHIBIT B
FORM OF OFFICER’S CERTIFICATE
Community Facilities District No. 2022-2
(Perris Logistics Center) of the City of Perris
Officer’s Certificate
Directing Disbursements From the Improvement Fund
The undersigned hereby states and certifies:
(i) That he is the duly qualified Finance Director of the City of Perris, a general law city and public body, corporate and politic, duly organized and existing under the laws of the State of California (the “City”), acting on behalf of Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “District”), and as such, is familiar with the facts herein certified and is authorized and qualified to execute and deliver this certificate;
(ii) That he is an “Authorized Officer” as defined in the Fiscal Agent Agreement, dated as of October 1, 2026 (the “Fiscal Agent Agreement”), by and between the District and U.S. Bank Trust Company, National Association, as Fiscal Agent (the “Fiscal Agent”) for the District’s Special Tax Bonds, 2026 Series; (iii) That pursuant to Section 3.6 of the Fiscal Agent Agreement, the Fiscal Agent is hereby directed to disburse this date from the Improvement Fund established pursuant to the Fiscal Agent Agreement to the payee, designated on Exhibit A attached hereto and by this reference incorporated herein, at the address set forth below such payee name, the respective sums set forth opposite such payees, in payment for the purposes described on said Exhibit “A”;
(iv) That each obligation shown on Exhibit A has been properly verified and approved by the City Engineer and is a proper charge against the Fund; (v) That the conditions to the release of such funds have been satisfied, (vi) There has not been filed with or served upon the District notice of any lien, right to lien or attachment, stop notice or claim affecting the right to receive payment of any of the moneys payable to any of the persons named herein or a written requisition which has not been released or will not be released simultaneously with the payment of, this obligation, other than materialmen’s or mechanic’s liens accruing by mere operation of law;
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(vii) That no item to be paid pursuant to this Officer’s Certificate has been previously paid or reimbursed from such Improvement Fund; and (viii) That capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Fiscal Agent Agreement.

DATED: _________

COMMUNITY FACILITIES DISTRICT
NO. 2022-2 (PERRIS LOGISTICS

CENTER) OF THE CITY OF PERRIS
____________________________________
[Authorized Officer][Finance Director]
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EXHIBIT A

DISBURSE

PAYMENT TO

FOR PURPOSES AMOUNT

WIRE INSTRUCTIONS ARE ATTACHED OR BY CHECK TO
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EXHIBIT C
FORM OF DISBURSEMENT REQUEST AND OFFICER’S CERTIFICATE
Community Facilities District No. 2022-2
(Perris Logistics Center) of the City of Perris
Disbursement Request and Officer’s Certificate
Directing Disbursements From the Pay-Go Fund
The undersigned hereby states and certifies:
(i) That he is the duly qualified Finance Director of the City of Perris, a general law city and public body, corporate and politic, duly organized and existing under the laws of the State of California (the “City”), acting on behalf of Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “District”), and as such, is familiar with the facts herein certified and is authorized and qualified to execute and deliver this certificate;
(ii) That he is an “Authorized Officer” as defined in the Fiscal Agent Agreement, dated as of October 1, 2026 (the “Fiscal Agent Agreement”), by and between the District and U.S. Bank Trust Company, National Association, as Fiscal Agent (the “Fiscal Agent”) for the District’s Special Tax Bonds, 2026 Series; (iii) That pursuant to Section 3.10 of the Fiscal Agent Agreement, the Fiscal Agent is hereby directed to disburse all funds in the Pay-Go Fund established and funded pursuant to Section 3 of the Fiscal Agent Agreement to IDI Logistics, LLC, (the “Developer”), as partial (or in full) reimbursement for the unreimbursed portion of the Crossing Project Fee Advance1as reflected on Exhibit A attached hereto and by this reference incorporated herein,
(iv) The amount set forth on Exhibit A is authorized and payable pursuant to terms of the Amended and Restated Acquisition and Funding Agreement dated August 25, 2026 (the “Amended Acquisition Agreement”), by and between the City of Perris, acting on behalf of the CFD and IDIL Perris Logistics Center North 1, L.P., a Delaware limited partnership, IDIL Perris Logistics Center North LP, a Delaware limited partnership, and IDIL Perris Fulfillment Center LP, a Delaware limited partnership and the Developer;
(v) That said obligation shown on Exhibit A has been properly verified and approved by the City and is a proper charge against the Pay-Go Fund;

1Or such other City Authorized Fee allowed to be paid under the Amended Acquisition Agreement. 1118
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(vi) That the conditions to the release of such funds have been satisfied; (vii) That, as of the date of this Disbursement Request, there are no delinquent Special Taxes within the District and, based upon the information reasonably available to the City, the City does not reasonably expect Special Tax delinquencies or a resulting insufficiency in amounts available to pay Debt Service on the Bonds or Additional Bonds that would warrant retention or transfer of the amount requested pursuant to Section

3.10(d) of the Fiscal Agent Agreement;
(viii) There has not been filed with or served upon the District notice of any lien, right to lien or attachment, stop notice or claim affecting the right to receive payment of any of the moneys payable to any of the persons named herein or a written requisition which has not been released or will not be released simultaneously with the payment of, this obligation, other than materialmen’s or mechanic’s liens accruing by mere operation of law;
(ix) The amount requested for reimbursement of the Crossing Project Fee Advance is due and payable, and has not formed the basis of prior request or payment other than prior payments received and identified on Exhibit A; and (x) That capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Fiscal Agent Agreement.

The City’s execution of this Disbursement Request constitutes the City’s determination that the amount requested is not then required to address actual or reasonably anticipated Special Tax delinquencies pursuant to Section 3.10(d) of the Fiscal Agent Agreement. The Fiscal Agent shall have no duty to make any independent determination concerning Special Tax delinquencies or anticipated Special Tax delinquencies and may conclusively rely upon this Officer’s Certificate.

DATED: _________

CITY OF PERRIS ON BEHALF OF

COMMUNITY FACILITIES DISTRICT
NO. 2022-2 (PERRIS LOGISTICS

CENTER) OF THE CITY OF PERRIS
____________________________________
[Authorized Officer][Finance Director]
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EXHIBIT A

DISBURSE

PAYMENT TO

FOR AMOUNT
IDI Logistics, LLC Reimbursement for
Crossing Project Fee
Advance
[Balance in the Pay-Go
Fund]

1. The undersigned, officer of IDI Logistics, LLC, certifies that the amount requested for reimbursement of the Crossing Project Fee Advance is due and payable, and has not formed the basis of prior request or payment, other than as disclosed below in paragraph 4.

2. The amount set forth above (i.e. balance in the Pay-Go Fund) is authorized and payable pursuant to terms of the Amended Acquisition Agreement and[ does not satisfy in full the reimbursement of the Crossing Project Fee Advance.]

3. All conditions precedent to this Disbursement Request pursuant to the Amended Acquisition Agreement have been met.

4. The amount still owed to IDI Logistics, LLC under the Amended Acquisition Agreement as of the date hereof is as follows:

Original Crossing Project Fee Advance $6,122,000
Request #1: Pay’t received on Oct. __, 2026 __
Amount still Outstanding and Due $----

5. The amount was provided to the City pursuant to the [describe agreement] and is being used pursuant to the Agreement to fund the type of facilities described in the Resolution of Intention.

5. Wiring Instructions are attached as Exhibit 1.

DATED: __________ IDI LOGISTICS, LLC
By: ______________________________
Name: ______________________________
Title: ______________________________
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1 ATTACHMENT 6

BOND PURCHASE AGREEMENT
1121
2 $__________
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES

BOND PURCHASE AGREEMENT
[BPA Date]
City of Perris
Community Facilities District No. 2022-2
(Perris Logistics Center) of the City of Perris
101 North D Street
Perris, California 92570
Ladies and Gentlemen:

Oppenheimer & Co. Inc., as underwriter (the “Underwriter”), acting not as a fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement (this “Purchase Agreement”) with Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “Community Facilities District”), which upon acceptance will be binding upon the Underwriter and the Community Facilities District. The agreement of the Underwriter to purchase the Bonds (as hereinafter defined) is contingent upon the Community Facilities District satisfying all of the obligations imposed upon them under this Purchase Agreement. This offer is made subject to the Community Facilities District’s acceptance by the execution of this Purchase Agreement and its delivery to the Underwriter at or before 11:59 P.M., local time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the Community Facilities District at any time prior to the acceptance hereof by the Community Facilities District. All capitalized terms used herein, which are not otherwise defined, shall have the meaning provided for such terms in the Fiscal Agent Agreement, dated as of October 1, 2026 (the “Fiscal Agent Agreement”), by and between the Community Facilities District and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent”).

1. Purchase, Sale and Delivery of the Bonds.

Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein: (i) the Underwriter hereby agrees to purchase from the Community Facilities District and the Community Facilities District hereby agrees to sell to the Underwriter all (but not less than all) of the $__________ aggregate principal amount of the Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series (the “Bonds”), dated the Closing Date (as hereinafter defined), bearing interest at the rates and maturing on the dates and in the principal amounts set forth in Exhibit A hereto. The purchase price for the Bonds shall be $_________ (being 100% of the aggregate principal amount thereof, plus a net original issue premium of $_______ and less an Underwriter’s discount of $________). 1122
3 The Underwriter agrees to make a bona fide public offering of all of the Bonds initially at the public offering prices (or yields) set forth in Exhibit A attached hereto and incorporated herein by reference. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds subject to Section 2 hereof, provided that the Underwriter shall not change the interest rates set forth in Exhibit A. The Bonds may be offered and sold to certain dealers at prices lower than such initial offering prices.

The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable from the Special Tax Revenues and Redemption Revenues as provided in the Fiscal Agent Agreement, the Preliminary Official Statement (as hereinafter defined), and the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Community Facilities District Act”). The issuance of the Bonds has been duly authorized by the City Council of the City of Perris (the “City”), as the legislative body for the Community Facilities, pursuant to a resolution (the “Community Facilities District Resolution of Issuance”) adopted on _______, 2026.

The proceeds of the Bonds will be used to: (i) finance certain public facilities related to the Community Facilities District to be owned and operated by the City and Eastern Municipal Water District, (ii) fund a reserve account securing the Bonds and (iii) pay costs of issuance of the Bonds.

A. The Community Facilities District hereby acknowledges that the Underwriter is entering into this Purchase Agreement in reliance on the representations, warranties and agreements made by the Community Facilities District herein, and the Community Facilities District shall take all action necessary to enforce its rights hereunder for the benefit of the Underwriter and shall immediately notify the Underwriter if it becomes aware that any representation, warranty or agreement made by the Community Facilities District herein is incorrect in any material respect.

The Community Facilities District acknowledges and agrees that (i) the purchase and sale of the Bonds pursuant to this Purchase Agreement is an arm’s-length commercial transaction between the Community Facilities District and the Underwriter, (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as principal and not as the agent or fiduciary of the Community Facilities District, (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the Community Facilities District with respect to (a) the offering of the Bonds or the process leading thereto (whether or not the Underwriter, or any affiliate of the Underwriter, has advised or is currently advising the Community Facilities District on other matters) or (b) any other obligations to the Community Facilities District with respect to the offering contemplated hereby, except the obligations expressly set forth in this Purchase Agreement or otherwise imposed by law, (iv) the Underwriter has financial interests that differ from those of the Community Facilities District and (v) the Community Facilities District has consulted with their own legal, financial and other advisors to the extent they have deemed appropriate in connection with this transaction. The Community Facilities District acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (“MSRB”). The Community Facilities District acknowledges and represents that it has engaged Fieldman, Rolapp & Associates, Inc. as its municipal advisor (the “Municipal Advisor”) (as defined in Securities and Exchange Commission Rule 15Ba1) and will rely solely on the financial advice of the Municipal Advisor with respect to the Bonds.
1123
4 B. Pursuant to the authorization of the Community Facilities District, the Underwriter has distributed copies of the Preliminary Official Statement dated [POS Date], relating to the Bonds, which, together with the cover page, inside cover page and appendices thereto is herein called the “Preliminary Official Statement.” By its acceptance of this Purchase Agreement, the Community Facilities District hereby ratifies the use by the Underwriter of the Preliminary Official Statement, and the Community Facilities District agrees to execute a final official statement relating to the Bonds (including any supplements and/or amendments thereto, the “Official Statement”) which will consist of the Preliminary Official Statement with such changes as may be made thereto, with the approval of Aleshire & Wynder, LLP, Bond Counsel (“Bond Counsel”), Stradling Yocca Carlson & Rauth LLP, Disclosure Counsel (“Disclosure Counsel”), and the Underwriter, and to provide copies thereof to the Underwriter as set forth herein. The Community Facilities District hereby authorizes and requires the Underwriter to use and promptly distribute, in connection with the offer and sale of the Bonds, the Preliminary Official Statement, the Official Statement and any supplement or amendment thereto. The Community Facilities District further authorizes the Underwriter to use and distribute, in connection with the offer and sale of the Bonds, the Fiscal Agent Agreement, the Continuing Disclosure Agreement executed by the Community Facilities District in connection with the Bonds (the “Continuing Disclosure Agreement”), this Purchase Agreement and all information contained herein, and all other documents, certificates and statements furnished by or on behalf of the Community Facilities District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement.

C. To assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the “Rule”), the Community Facilities District will undertake pursuant to the Continuing Disclosure Agreement, in the form attached to the Official Statement as Appendix D, to provide annual reports and notices of certain enumerated events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Official Statement.

D. Except as the Underwriter and the Community Facilities District may otherwise agree, the Community Facilities District will deliver to the Underwriter, at the offices of Bond Counsel in Irvine, California, or at such other location as may be mutually agreed upon by the Underwriter and the Community Facilities District, the documents hereinafter mentioned; and the Community Facilities District will deliver to the Underwriter through the facilities of The Depository Trust Company (“DTC”), the Bonds, in definitive form (all Bonds bearing CUSIP numbers), duly executed by the Community Facilities District and authenticated by the Fiscal Agent in the manner provided for in the Fiscal Agent Agreement and the Community Facilities District Act at 8:00 a.m.

California time, on [Closing Date] (the “Closing Date”), and the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in paragraph (A) of this Section by wire transfer, payable in federal or other immediately available funds (such delivery and payment being herein referred to as the “Closing”). The Bonds shall be in fully registered book-entry form (which may be typewritten) and shall be registered in the name of Cede & Co., as nominee of DTC.

2. Establishment of Issue Price.

A. The Underwriter agrees to assist the Community Facilities District in establishing the issue price of the Bonds and shall execute and deliver to the Community Facilities District at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit C, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the 1124
5 Community Facilities District and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds.

B. Except as otherwise set forth in Exhibit A attached hereto, the Community Facilities District will treat the first price at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Community Facilities District the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Community Facilities District the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the public.

C. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto. Exhibit A also sets forth, as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement) and (ii) the 10% test has not been satisfied and for which the Community Facilities District and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Community Facilities District to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-theoffering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:

1. the close of the fifth (5th) business day after the sale date; or

2. the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter shall promptly advise the Community Facilities District when it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date.

D. The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been 1125
6 satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public.
(ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.

E. The Community Facilities District acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-theoffering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires.

F. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.

Further, for purposes of this section:

1. “public” means any person other than an underwriter or a related party;

2. “underwriter” means (A) any person that agrees pursuant to a written contract with the Community Facilities District (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause 1126
7 (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public);

3. a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and

4. “sale date” means the date of execution of this Purchase Agreement by all parties.

3. Representations, Warranties and Covenants of the Community Facilities District.

The Community Facilities District represents, warrants and covenants to the Underwriter on behalf of itself and the City that:

A. The City is duly organized and validly existing as a general law city under the Constitution and laws of the State of California and has duly authorized the formation of the Community Facilities District pursuant to resolutions duly adopted by the City Council (the “Community Facilities District Formation Resolution” and, together with the Community Facilities District Resolution of Issuance, the “Community Facilities District Resolutions”) and the Community Facilities District Act. The City Council, as the legislative body of the City and the Community Facilities District, has duly adopted the Community Facilities District Formation Resolution, and has caused to be recorded in the real property records of the County of Riverside, notice of special tax lien, and any required amendments thereof (collectively, the “Notice of Special Tax Lien”) (the Community Facilities District Formation Resolution and Notice of Special Tax Lien being collectively referred to herein as the “Formation Documents”), and has duly adopted the Community Facilities District Resolution of Issuance. Each of its Formation Documents remains in full force and effect as of the date hereof and has not been amended. The Community Facilities District is duly organized and validly existing as a Community Facilities District under the laws of the State of California. The Community Facilities District has, and at the Closing Date will have, as the case may be, full legal right, power and authority: (i) to execute, deliver and perform its obligations under this Purchase Agreement, the Continuing Disclosure Agreement and the Fiscal Agent Agreement, and to carry out all transactions contemplated by each of such agreements; (ii) to issue, sell and deliver the Bonds as provided herein; and (iii) to carry out, give effect to and consummate the transactions contemplated by the Formation Documents, the Fiscal Agent Agreement, the Bonds, the Continuing Disclosure Agreement, this Purchase Agreement and the Official Statement.

This Purchase Agreement, the Fiscal Agent Agreement, the Bonds and the Continuing Disclosure Agreement are collectively referred to herein as the “Community Facilities District Documents.”
1127
8 B. The Community Facilities District and the City, as applicable, have each complied, and will at the Closing Date be in compliance in all material respects, with the Formation Documents and the Community Facilities District Documents, and any immaterial noncompliance by the Community Facilities District and the City, if any, will not impair the ability of the Community Facilities District and the City, as applicable, to carry out, give effect to or consummate the transactions contemplated by the foregoing. From and after the date of issuance of the Bonds, the Community Facilities District will continue to comply with the covenants of the Community Facilities District contained in the Community Facilities District Documents.

C. The information in the Preliminary Official Statement and in the Official Statement relating to the Community Facilities District and the Bonds (other than information under the captions “THE DISTRICT – Ownership and Development Within The District,” and “MISCELLANEOUS —Underwriting,” Appendix F and Appendix G, information provided by IDI Logistics, LLC, a Delaware limited liability company (the “Master Developer”), the Appraiser and the Special Tax Consultant (as each such terms are defined herein) and statements pertaining to the book entry system, as to which no view is expressed), is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and, upon delivery and up to and including 25 days after the End of the Underwriting Period (as defined in paragraph (D) below), the Official Statement will be amended and supplemented so as to contain no misstatement of any material fact or omission of any statement necessary to make the statements contained therein, in the light of the circumstances in which such statements were made, not misleading.

D. Up to and including 25 days after the End of the Underwriting Period (as defined below), the Community Facilities District will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The Community Facilities District will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise materially affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. As used herein, the term “End of the Underwriting Period” means the later of such time as: (i) the Bonds are delivered to the Underwriter; or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the End of the Underwriting Period shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the Community Facilities District at or prior to the Closing Date and shall specify a date (other than the Closing Date) to be deemed the “End of the Underwriting Period.” E. Except as described in the Preliminary Official Statement and Official Statement, the Community Facilities District is not, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State of California, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance of its obligations under the Community Facilities District Documents and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement, will not 1128
9 conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Community Facilities District Documents or the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement.

F. Except as may be required under the “blue sky” or other securities laws of any jurisdiction, all approvals, consents, authorizations, elections and orders of, or filings or registrations with, any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the Community Facilities District of its obligations under the Community Facilities District Documents, and the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement, have been or will be obtained at the Closing Date and are or will be in full force and effect at the Closing Date.

G. The Community Facilities District Documents conform as to form and tenor to the descriptions thereof contained in the Official Statement.

H. The Bonds are payable from the Special Tax of the Community Facilities District, as set forth in the Fiscal Agent Agreement, the levy of which has been duly and validly authorized pursuant to the Community Facilities District Act and the Community Facilities District will covenant in the Fiscal Agent Agreement to levy the Special Taxes within the Community Facilities District in an amount which, together with other available funds, is required for the payment of the principal of, and interest on, the Bonds when due and payable, all as provided in the Fiscal Agent Agreement.

I. The Fiscal Agent Agreement creates a valid pledge of, first lien upon and security interest in, the Special Tax Revenues and Redemption Revenues, and in the moneys in the Special Tax Fund established pursuant to the Fiscal Agent Agreement, on the terms and conditions set forth in the Fiscal Agent Agreement.

J. Except as disclosed in the Preliminary Official Statement, there are, to the best of the Community Facilities District’s knowledge, no entities with outstanding assessment liens against any of the properties within the Community Facilities District or which are senior to or on a parity with the Special Taxes of the Community Facilities District.

K. The Preliminary Official Statement was deemed final by a duly authorized officer of the Community Facilities District prior to its delivery to the Underwriter, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(1) of the Rule. The Community Facilities District hereby covenants and agrees that, within seven (7) business days from the date hereof, or upon reasonable written notice from the Underwriter within sufficient time to accompany any confirmation requesting payment from any customers of the Underwriter, the Community Facilities District shall cause a final printed form of the Official Statement to be delivered to the Underwriter in sufficient quantity to comply with paragraph (b)(4) of the Rule and Rules G-12, G-15, G-32 and G-36 of the Municipal Securities Rulemaking Board. 1129
10 L. At the time of acceptance hereof there is and as of the Closing there will be no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body (collectively and individually, an “Action”) pending (notice of which has been served on the Community Facilities District) or to the best knowledge of the Community Facilities District or the City threatened, in which any such Action: (i) in any way questions the existence of the Community Facilities District or the titles of the officers of the Community Facilities District to their respective offices; (ii) affects, contests or seeks to prohibit, restrain or enjoin the issuance or delivery of the Bonds or the payment or collection of Special Taxes or any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contests or affects the validity of the Community Facilities District Documents or the consummation of the transactions on the part of the Community Facilities District contemplated thereby; (iii) contests the exemption of interest on the Bonds from federal or State income taxation or contests the powers of the Community Facilities District which may result in any material adverse change relating to the financial condition of the Community Facilities District; or (iv) contests the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserts that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and as of the time of acceptance hereof there is and, as of the Closing Date, there will be no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clauses (i) through (iv) of this sentence.

M. Any certificate signed on behalf of the Community Facilities District by any officer or employee of the Community Facilities District authorized to do so shall be deemed a representation and warranty by the Community Facilities District to the Underwriter on behalf of itself and the Community Facilities District as to the statements made therein.

N. At or prior to the Closing the Community Facilities District will have duly authorized, executed and delivered the Continuing Disclosure Agreement in substantially the form attached as Appendix D to the Official Statement. Based upon a review of its previous undertakings, and except as disclosed in the Preliminary Official Statement, the Community Facilities District, the City and its related governmental entities, and the Successor Agency to the Redevelopment Agency of the City of Perris have not failed to comply in all respects with any previous undertakings with regard to the Rule to provide annual reports or notices of enumerated events in the last five years.

O. The Community Facilities District will apply the proceeds of the Bonds in accordance with the Fiscal Agent Agreement and as described in the Official Statement.

P. Until such time as moneys have been set aside in an amount sufficient to pay all then outstanding Bonds at maturity or to the date of redemption if redeemed prior to maturity, plus unpaid interest thereon and premium, if any, to maturity or to the date of redemption if redeemed prior to maturity, the Community Facilities District will faithfully perform and abide by all of the covenants, undertakings and provisions contained in the Fiscal Agent Agreement.

Q. Between the date of this Purchase Agreement and the date of Closing, the Community Facilities District will not offer or issue any bonds, notes or other obligations for borrowed money not previously disclosed to the Underwriter. 1130
11 The Community Facilities District hereby approves the preparation and distribution of the Official Statement, consisting of the Preliminary Official Statement with such changes as are noted thereon and as may be made thereto, with the approval of Bond Counsel, Disclosure Counsel and the Underwriter, from time to time prior to the Closing Date.

The execution and delivery of this Purchase Agreement by the Community Facilities District shall constitute a representation by the Community Facilities District to the Underwriter that the representations and warranties contained in this Section 3 with respect to the Community Facilities District are true as of the date hereof.

4. Conditions to the Obligations of the Underwriter. The obligation of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the Community Facilities District contained herein, to the accuracy in all material respects of the statements of the officers and other officials of the Community Facilities District made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the Community Facilities District of its obligations to be performed hereunder at or prior to the Closing Date, and in reliance upon the representations and covenants of the Master Developer contained in the certificates delivered as of the Closing Date, and to the following additional conditions:

A. At the Closing Date, the Community Facilities District Resolutions and the Community Facilities District Documents shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the Bonds, and with the transactions contemplated thereby, and by this Purchase Agreement, all such actions as, in the opinion of Bond Counsel, shall be necessary and appropriate.

B. At the Closing Date, except as described in the Official Statement, the City shall not be, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State of California, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the City is a party or is otherwise subject or bound, and the performance of the conditions precedent to be performed hereunder will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State of California, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the City is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance of the conditions precedent to be performed by the City hereunder.

C. At the Closing Date, except as described in the Official Statement, the Community Facilities District shall not be, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State of California, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and 1131
12 the performance by the Community Facilities District of its obligations under the Bonds, the Community Facilities District Resolutions, the Fiscal Agent Agreement, and any other instruments contemplated by any of such documents, and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed hereunder, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State of California, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Fiscal Agent Agreement, the Bonds or the performance of the conditions precedent to be performed by the Community Facilities District hereunder.

D. The information contained in the Official Statement is, as of the Closing Date and as of the date of any supplement or amendment thereto pursuant hereto, will be true and correct in all material respects and does not, as of the Closing Date or as of the date of any supplement or amendment thereto, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

E. Between the date hereof and the Closing Date, the market price or marketability, at the initial offering prices set forth on the inside cover page of the Official Statement, of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds, shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the Community Facilities District terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by reason of any of the following:

1. Legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation had been referred for consideration, or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department of the United States of America or the Internal Revenue Service, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon such interest as would be received by any owners of the Bonds beyond the extent to which such interest is subject to taxation as of the date hereof; or

2. Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Fiscal Agent Agreement is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, 1132
13 including any or all underlying arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws as amended and then in effect; or

3. A general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of the SEC or any other governmental authority having jurisdiction; or

4. The introduction, proposal or enactment of any amendment to the Federal or California Constitution or any action by any Federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Community Facilities District, its property, income, securities (or interest thereon), the validity or enforceability of Special Taxes, or the ability of the Community Facilities District to issue the Bonds as contemplated by the Fiscal Agent Agreement and the Official Statement; or

5. Any event occurring, or information becoming known which, in the judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Preliminary Official Statement or in the Official Statement, or has the effect that the Preliminary Official Statement or the Official Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; or

6. Any national securities exchange, the Comptroller of the Currency, or any other governmental authority, shall impose as to the Bonds, or obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; or

7. There shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or

8. Except as disclosed in or contemplated by the Official Statement, any material adverse change in the affairs of the City or Community Facilities District shall have occurred; or

9. Any event or circumstance shall exist that either makes untrue or incorrect in any material respect any statement or information in the Official Statement (other than any statement provided by the Underwriter) or is not reflected in the Official Statement but should be reflected therein in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and, in either such event, the Community Facilities District refuses to permit the Official Statement to be supplemented to supply such statement or information, or the effect of the Official Statement as so supplemented is to materially adversely affect the market price or marketability of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or
1133
14 10. A general banking moratorium shall have been declared by federal or State authorities having jurisdiction and be in force; or

11. A material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or

12. Any new restriction on transactions in securities materially affecting the market for securities (including the imposition of any limitation on interest rates) or the extension of credit by, or a charge to the net capital requirements of, underwriters shall have been established by the New York Stock Exchange, the SEC, any other federal or State agency or the Congress of the United States, or by Executive Order; or

13. A decision by a court of the United States shall be rendered, or a stop order, release, regulation or no-action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Bonds, including the underlying obligations as contemplated by this Purchase Agreement or by the Official Statement, or any document relating to the issuance, offering or sale of the Bonds, is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Trust Indenture Act of 1939, as amended; or

14. Any proceeding shall have been commenced or be threatened in writing by the Securities and Exchange Commission against the City or the Community Facilities District; or

15. The commencement of any Action.

F. At or prior to the Closing Date, the Underwriter shall have received a counterpart original or certified copy of the following documents, in each case satisfactory in form and substance to the Underwriter:

1. The Official Statement, executed on behalf of the Community Facilities District by an authorized officer;

2. The Fiscal Agent Agreement, duly executed and delivered by the Community Facilities District and the Fiscal Agent;

3. The Community Facilities District Resolution, the Community Facilities District Documents and the Formation Documents, together with a certificate dated as of the Closing Date of the City Clerk to the effect that the Community Facilities District Resolutions are true, correct and complete copies of the ones duly adopted by the City Council;

4. The Continuing Disclosure Agreement executed and delivered by an authorized officer the Community Facilities District;

5. An unqualified approving opinion for the Bonds, dated the Closing Date and addressed to the Community Facilities District, of Bond Counsel, to the effect that the Bonds are the valid, legal and binding obligations of the Community Facilities District and that the interest thereon is excluded from gross income for federal income tax purposes and exempt from personal income taxes of the State of California, in substantially the form included as Appendix C to 1134
15 the Official Statement, together with a letter of Bond Counsel, dated the Closing Date and addressed to the Underwriter, to the effect that such opinion addressed to the Community Facilities District may be relied upon by the Underwriter to the same extent as if such opinion was addressed to it;

6. A supplemental opinion or opinions, dated the Closing Date and addressed to the Underwriter, of Bond Counsel, to the effect that:
(i) this Purchase Agreement and the Continuing Disclosure Agreement have been duly authorized, executed and delivered by the Community Facilities District and, assuming due authorization, execution and delivery by the other parties thereto, as applicable, constitutes the legal, valid and binding obligations of the Community Facilities District and are enforceable in accordance with their terms, except to the extent that enforceability may be limited by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting creditors’ rights generally or by the exercise of judicial discretion in accordance with general principles of equity or otherwise in appropriate cases and by limitations on legal remedies against public agencies in the State;
(ii) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Fiscal Agent Agreement is exempt from qualification under the Trust Indenture Act of 1939, as amended;
(iii) the information contained in the Official Statement on the cover and under the captions “THE BONDS” (other than the caption “Estimated Debt Service Schedule”), “SECURITY FOR THE BONDS,” “LEGAL MATTERS – Tax Matters” and in Appendices A and C to the Official Statement, are accurate insofar as such statements purport to summarize certain provisions of the Bonds, the Fiscal Agent Agreement, and Bond Counsel’s final approving opinion.

7. The letter of Disclosure Counsel, dated the Closing Date and addressed to the Community Facilities District and to the Underwriter, to the effect that, without having undertaken to determine independently the accuracy or completeness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the Community Facilities District, the Special Tax Consultant and others, and their examination of certain documents, nothing has come to their attention which has led them to believe that the Preliminary Official Statement as of its date and the date of this Purchase Agreement and the Official Statement as of its date and as of the Closing Date contained or contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any financial statements or other financial, statistical or engineering data or forecasts, numbers, charts, estimates, projections, assumptions, or expressions of opinion, any information about valuation, appraisals, absorption, archeological or environmental matters, or any information with respect to the City, or any information about DTC or the book-entry-only system);

8. A certificate dated the Closing Date and signed by an authorized representative of the Community Facilities District or an authorized designee, on behalf of the Community Facilities District to the effect that: (i) the representations and warranties made by the Community Facilities District contained herein are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) to the best knowledge of 1135
16 such officer, no event has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purpose for which it is to be used or which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; and (iii) the Community Facilities District has complied with all the agreements and satisfied all the conditions on its part to be satisfied under this Purchase Agreement, the Community Facilities District Resolutions, and the Community Facilities District Documents at or prior to the Closing Date;

9. An opinion of the City Attorney dated the date of Closing and addressed to the Underwriter and the City, to the effect that:
(i) The City is a municipal corporation and general law city, duly organized and existing under the Constitution and laws of the State of California; (ii) The Community Facilities District Resolutions have been duly adopted at meetings of the City Council, which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the Community Facilities District Resolutions are in full force and effect and have not been modified, amended, rescinded or repealed since the respective dates of their adoption; (iii) The Community Facilities District Documents and the Official Statement have been duly authorized, executed and delivered by the City and the Community Facilities District Documents constitute the legal, valid and binding obligations of the Community Facilities District enforceable against the Community Facilities District in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights, to the application of equitable principles where equitable remedies are sought and to the exercise of judicial discretion in appropriate cases; (iv) Except as may be stated in the Official Statement, there is no action, suit, proceeding or investigation before or by any court, public board or body pending (notice of which has been served on the City or the Community Facilities District) or, to such counsel’s knowledge, threatened wherein an unfavorable decision, ruling or finding would: (a) affect the creation, organization, existence or powers of the City, or the titles of its members and officers to their respective offices; or (b) affect the validity of the Community Facilities District Documents or restrain or enjoin the repayment of the Bonds or in any way contest or affect the validity of the Community Facilities District Documents or contest the authority of the Community Facilities District to enter into or perform its obligations under any of the Community Facilities District Documents, questions the right of the Community Facilities District to use Special Taxes levied within the Community Facilities District for the repayment of the Bonds or affects in any manner the right or ability of the Community Facilities District to collect the Special Taxes or pledge the Special Tax Revenues and Redemption Revenues levied within the Community Facilities District for the repayment of the Bonds;

10. A certificate dated the Closing Date from Integra Realty Resources (the “Appraiser”) to the effect that: (i) the statements in the Official Statement provided by the Appraiser and all information supplied by it for use in the Official Statement were as of the date of the Official Statement and are as of the Closing Date true and correct, and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading and (ii) no events 1136
17 or occurrences have been ascertained by the Appraiser or have come to the Appraiser’s attention since August 14, 2026 that would materially change the opinion set forth in the Appraisal;

11. A certificate dated the Closing Date from Willdan Financial Services, LLC (the “Special Tax Consultant”) to the effect that: (i) the Special Tax if collected in the maximum amounts permitted pursuant to the Rate and Method of Apportionment of Special Taxes of the Community Facilities District as of the Closing Date would generate at least 110% of the annual debt service payable with respect to the Bonds plus Administrative Expenses in each year, based on such assumptions and qualifications as shall be acceptable to the Underwriter; and (ii) the statements in the Official Statement provided by the Special Tax Consultant concerning Special Taxes in the Community Facilities District and all information supplied by it for use in the Official Statement were as of the date of the Official Statement and are as of the Closing Date true and correct, and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading;

12. Certified copies of the general resolution of the Fiscal Agent authorizing the execution and delivery of certain documents by certain officers of the Fiscal Agent, which resolution authorizes the execution of the Fiscal Agent Agreement and the authentication of the Bonds;

13. A certificate of the Fiscal Agent, dated the Closing Date, to the effect that: (i) the Fiscal Agent is authorized to carry out corporate trust powers, and has full power and authority to perform its duties under the Fiscal Agent Agreement; (ii) the Fiscal Agent is duly authorized to execute and deliver the Fiscal Agent Agreement, to accept the obligations created by the Fiscal Agent Agreement and to authenticate the Bonds pursuant to the terms of the Fiscal Agent Agreement; (iii) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Fiscal Agent that has not been obtained is or will be required for the authentication of the Bonds or the consummation by the Fiscal Agent of the other transactions contemplated to be performed by the Fiscal Agent in connection with the authentication of the Bonds and the acceptance and performance of the obligations created by the Fiscal Agent Agreement; and (iv) to the best of its knowledge, compliance with the terms of the Fiscal Agent Agreement will not conflict with, or result in a violation or breach of, or constitute a default under, any loan agreement, indenture, bond, note, resolution or any other agreement or instrument to which the Fiscal Agent is a party or by which it is bound, or any law or any rule, regulation, order or decree of any court or governmental agency or body having jurisdiction over the Fiscal Agent or any of its activities or properties;

14. An opinion of counsel to the Fiscal Agent dated the Closing Date, addressed to the Underwriter, and the Community Facilities District to the effect that the Fiscal Agent is a national banking association duly organized and validly existing under the laws of the United States having full power and being qualified to enter into, accept and agree to the provisions of the Fiscal Agent Agreement, and that such documents has been duly authorized, executed and delivered by the Fiscal Agent, and, assuming due execution and delivery by the other parties thereto, constitutes the legal, valid and binding obligation of the Fiscal Agent, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by the application of equitable principles if equitable remedies are sought; 1137
18 15. A certificate of the Community Facilities District dated the Closing Date, in a form acceptable to Bond Counsel and the Underwriter, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended;

16. An opinion of counsel to the Master Developer, dated the date of the Closing, addressed to the Underwriter and the Community Facilities District, in form and substance acceptable to the Underwriter and Bond Counsel;

17. A Letter of Representations from the Master Developer, dated the date of the Preliminary Official Statement, substantially in the form attached hereto as Exhibit B;

18. A Closing Certificate of the Master Developer, dated the date of the Closing, substantially in the form attached as an exhibit to Exhibit B hereto or as such Closing Certificate may be modified with the approval of the Underwriter and Disclosure Counsel;

19. The Continuing Disclosure Certificate executed and delivered by the Master Developer in substantially the form attached as Appendix E to the Official Statement;

20. An opinion of Kutak Rock LLP, counsel to the Underwriter (“Underwriter’s Counsel”), dated the date of Closing and addressed to the Underwriter in form and substance acceptable to the Underwriter; and

21. Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the material representations and warranties of the Community Facilities District contained herein, and of the statements and information contained in the Official Statement and the due performance or satisfaction by the Community Facilities District at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by the Community Facilities District in connection with the transactions contemplated hereby and by the Fiscal Agent Agreement and the Official Statement.

If the Community Facilities District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Purchase Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and neither the Community Facilities District nor the Underwriter shall be under any further obligation hereunder, except that the respective obligations of the Underwriter and the Community Facilities District set forth in Section 5 hereof shall continue in full force and effect.

5. Expenses. Whether or not the transactions contemplated by this Purchase Agreement are consummated, the Underwriter shall be under no obligation to pay, and the Community Facilities District shall pay only from the proceeds of the Bonds, or any other legally available funds of the City, or the Community Facilities District, but only as the Community Facilities District and such other party providing such services may agree, all expenses and costs of the Community Facilities District incident to the performance of its obligations in connection with the authorization, execution, sale and delivery of the Bonds to the Underwriter, including, without limitation, printing costs, rating agency fees and charges, initial fees of the Fiscal Agent, including fees and disbursements of its counsel, if any, fees and disbursements of Bond Counsel, Disclosure Counsel and other professional advisors employed by the City, costs of preparation, printing, signing, transportation, delivery and 1138
19 safekeeping of the Bonds and for expenses (included in the expense component of the Underwriter’s discount) incurred by the Underwriter on behalf of the City’s employees which are incidental to implementing this Purchase Agreement, including, but not limited to, meals, transportation, lodging, and entertainment of those employees. The Underwriter shall pay all out-of-pocket expenses of the Underwriter, including, without limitation, advertising expenses, the California Debt and Investment Advisory Commission fee, CUSIP Services Bureau charges, regulatory fees imposed on new securities issuers and any and all other expenses incurred by the Underwriter in connection with the public offering and distribution of the Bonds, including fees and disbursements of Underwriter’s Counsel. Any meals in connection with or adjacent to meetings, rating agency presentations, pricing activities or other transaction-related activities shall be considered an expense of the transaction and included in the expense component of the Underwriter’s discount.

6. Notices. Any notice of other communication to be given to the Community Facilities District or the City under this Purchase Agreement may be given by delivering the same in writing to the City of Perris, 101 North D Street, Perris, California 92570, Attention: City Manager; any notice or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Oppenheimer & Co. Inc., 135 Main Street, Suite 1700, San Francisco, CA 94105, Attention: Municipal Capital Markets Group.

7. Parties In Interest. This Purchase Agreement is made solely for the benefit of the Community Facilities District and Underwriter (including any successors or assignees of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof.

8. Survival of Representations and Warranties. The representations and warranties of the Community Facilities District under this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the Community Facilities District and regardless of delivery of and payment for the Bonds.

9. Execution in Counterparts. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

10. No Prior Agreements. This Purchase Agreement supersedes and replaces all prior negotiations, agreements and understanding among the parties hereto in relation to the sale of the Bonds by the Community Facilities District.

11. Governing Law. This Purchase Agreement shall be governed by the laws of the State of California.
1139
S-1

12. Effective Date. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance.

Very truly yours,
OPPENHEIMER & CO. INC.

By:

Its: Authorized Officer
The foregoing is hereby agreed to and accepted as of the date first above written:

COMMUNITY FACILITIES DISTRICT
NO. 2022-2 (PERRIS LOGISTICS

CENTER) OF THE CITY OF PERRIS
By:

Authorized Officer
Time of Execution: _____________ California time
1140
A-1

EXHIBIT A
$__________
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES

MATURITY SCHEDULE
Maturity
(September 1)
Principal
Amount
Interest
Rate Yield Price
10% Test
Satisfied*
10% Test
Not
Satisfied
Subject to
Hold-TheOfferingPrice Rule
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
20__(T)
20__(T)
________________
(T) Term Bond.
(C) Priced to optional call at [par] on September 1, 20___. * At the time of execution of this Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement. 1141
B-1

EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES

LETTER OF REPRESENTATIONS OF IDI LOGISTICS, LLC
[TO COME]
1142
C-1

EXHIBIT C
$__________
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES

FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Oppenheimer & Co. Inc. (“Oppenheimer”) hereby certifies as set forth below with respect to the sale and issuance of the above-captioned bonds (the “Bonds”).

1. Sale of the Bonds. As of the date of this certificate, for each Maturity of the Bonds, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.

2. Defined Terms.
(a) Issuer means Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris.
(b) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(c) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.

The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (d) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).

3. Aggregate Issue Price. The aggregate issue price of the Bonds, being the Sale Price of each Bond is $_______ (the “Issue Price”).
1143
C-2
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Oppenheimer’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Aleshire & Wynder, LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.

OPPENHEIMER & CO. INC.

By:

Name:

Dated: [Closing Date]
1144
C-3

SCHEDULE A

SALE PRICES
(To be Attached)
1145
Stradling Yocca Carlson & Rauth
Draft of September 10, 2026
4912-2461-8956v3/022318-0014
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ATTACHMENT 7

PRELIMINARY OFFICIAL STATEMENT
1146
4912-2461-8956v3/022318-0014
PRELIMINARY OFFICIAL STATEMENT DATED __________, 2026

NEW ISSUE-FULL BOOK ENTRY NO RATING
In the opinion of Aleshire & Wynder, LLP, Bond Counsel, based on existing statutes, regulations, rulings and court decisions and assuming, among other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes. In the opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax. Bond Counsel observes, however, that interest on the Bonds is included in annual adjusted financial statement income for the purpose of computing the alternative minimum tax imposed on applicable corporations. Bond Counsel expresses no opinion regarding other federal or State tax consequences relating to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds.

See “LEGAL MATTERS — Tax Matters” herein.
$12,670,000*
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES
Due: September 1 as shown on inside cover Dated: Date of Delivery This Official Statement describes bonds that are being issued by Community Facilities District No. 2022-2 (Perris Logistics Center) of the City of Perris (the “District”). The Community Facilities District 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series (the “Bonds”) are being issued by the District to (i) finance certain public facilities related to the District to be owned and operated by the City of Perris (the “City”) and Eastern Municipal Water District, (ii) fund a reserve account securing the Bonds and (iii) pay costs of issuance of the Bonds. See “FINANCING PLAN.” The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Mello-Roos Act”), and pursuant to that certain Fiscal Agent Agreement, dated as of October 1, 2026 (the “Fiscal Agent Agreement”), by and between the District and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent”).

The Bonds are payable from Special Tax Revenues and Redemption Revenues (as defined herein) derived from a certain annual Special Tax (as defined herein) to be levied on taxable parcels within the District and from certain other funds pledged under the Fiscal Agent Agreement, all as further described herein. The Special Tax is to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes” and APPENDIX B — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”
The Bonds will be issued in denominations of $5,000 or any integral multiple thereof. Interest on the Bonds is payable on each March 1 and September 1, commencing March 1, 2027. The Bonds will be initially issued only in book-entry form and registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository of the Bonds. Principal and interest (and premium, if any) on the Bonds is payable by the Fiscal Agent to DTC, which is to remit such payments to its Participants for subsequent distribution to the beneficial owners of the Bonds. See “THE BONDS — General Provisions” and — Book-Entry Only System” herein.

The Bonds are subject to optional, mandatory and special mandatory redemption prior to maturity as described herein. See “THE BONDS — Redemption.”

CERTAIN EVENTS COULD AFFECT THE ABILITY OF THE DISTRICT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WHEN DUE. THE PURCHASE OF THE BONDS INVOLVES SIGNIFICANT INVESTMENT RISKS, AND THE BONDS MAY NOT BE SUITABLE INVESTMENTS FOR MANY INVESTORS. SEE THE SECTION OF THIS OFFICIAL STATEMENT ENTITLED “SPECIAL RISK FACTORS” FOR A DISCUSSION

OF CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED, IN ADDITION TO THE OTHER MATTERS SET FORTH HEREIN, IN EVALUATING THE INVESTMENT QUALITY OF THE BONDS.

Maturity Schedule
(see inside cover)
The Bonds will be offered when, as and if issued and received by the Underwriter, subject to the approval as to their legality by Aleshire & Wynder, LLP, Irvine, California, as Bond Counsel. Certain legal matters will be passed upon for the City and the District by Aleshire & Wynder, LLP, the City Attorney and by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, as Disclosure Counsel, for the Underwriter by its counsel, Kutak Rock LLP, Irvine, California and for the Fiscal Agent by its counsel. It is anticipated that the Bonds in definitive form will be available for delivery to DTC or its agent on or about October __, 2026.
[OPPENHEIMER LOGO]

* Preliminary, subject to change.
1147
4912-2461-8956v3/022318-0014
Dated: ____________, 2026
1148
4912-2461-8956v3/022318-0014

MATURITY SCHEDULE
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES
BASE CUSIP®†_______
Maturity
(September 1)
Principal
Amount Interest Rate Yield Price CUSIP† No.
$ % %
$_______ _____% Term Bonds due September 1, 20__ Yield: _____% Price: _____ CUSIP No.† _____ $_______ _____% Term Bonds due September 1, 20__ Yield: _____% Price: _____ CUSIP No.† _____

†
CUSIP is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2026 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the District, the City, the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers. 1149
4912-2461-8956v3/022318-0014

CITY OF PERRIS, CALIFORNIA

COUNTY OF RIVERSIDE, CALIFORNIA

CITY COUNCIL
Michael M. Vargas, Mayor
David Starr Rabb, Mayor Pro Tem
Malcolm Corona, Council Member
Marisela Nava, Council Member
Elizabeth Vallejo, Council Member

CITY STAFF
Clara Miramontes, City Manager
Ernest Reyna, Assistant City Manager
Nancy Salazar, City Clerk
Sunny K. Soltani, Esq., Aleshire & Wynder, LLP, City Attorney

BOND COUNSEL
Aleshire & Wynder, LLP
Irvine, California

DISCLOSURE COUNSEL
Stradling Yocca Carlson & Rauth LLP
Newport Beach, California

MUNICIPAL ADVISOR
Fieldman, Rolapp & Associates, Inc.

Irvine, California

SPECIAL TAX CONSULTANT/DISSEMINATION AGENT
Willdan Financial Services
Temecula, California

APPRAISER
Integra Realty Resources
Los Angeles, California

FISCAL AGENT
U.S. Bank Trust Company, National Association
Los Angeles, California
1150
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Investment in the Bonds involves risks which are not appropriate for certain investors. Therefore, only persons with substantial financial resources (in net worth or income) who understand those risks should consider such an investment.

Except where otherwise indicated, all information contained in this Official Statement has been provided by the City and the District. No dealer, broker, salesperson or other person has been authorized by the City, the District, the Fiscal Agent or the Underwriter to give any information or to make any representations in connection with the offer or sale of the Bonds other than as contained herein; and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the District, the Fiscal Agent 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 by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.

The information set forth herein which has been obtained from third party sources is believed to be reliable but is not guaranteed as to accuracy or completeness by the District or the City. This Official Statement is not to be construed as a contract with the purchasers or Owners of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.

The Underwriter has provided the following sentence for inclusion in this Official Statement:

The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

The information and expressions of opinion herein are 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 affairs of the City, the District or any other parties described herein since the date hereof. All summaries of the Fiscal Agent Agreement or other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the City for further information in connection therewith.

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget” or other similar words.

The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The District does not plan to issue any updates or revisions to the forward-looking statements set forth in this Official Statement. The District is obligated to provide continuing disclosure for certain historical information only. See the caption “MISCELLANEOUS — Continuing Disclosure” herein.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. 1151

TABLE OF CONTENTS
Page
4912-2461-8956v3/022318-0014 i
INTRODUCTION ................................................................................................................................................ 1 Financing Purpose.......................................................................................................................................... 1 The Bonds...................................................................................................................................................... 1 Legal Authority.............................................................................................................................................. 2 Sources of Payment for the Bonds................................................................................................................. 2 The District .................................................................................................................................................... 2 Property Values and the Appraisal Report..................................................................................................... 4 Description of the Bonds................................................................................................................................ 4 Professionals Involved in the Offering .......................................................................................................... 5 Continuing Disclosure.................................................................................................................................... 5 FINANCING PLAN............................................................................................................................................. 6 Purpose of Issue ............................................................................................................................................. 6 Estimated Sources and Uses of Funds ........................................................................................................... 6 THE BONDS........................................................................................................................................................ 6 General Provisions......................................................................................................................................... 6 Redemption.................................................................................................................................................... 7 Book-Entry Only System............................................................................................................................. 10 Estimated Debt Service Schedule ................................................................................................................ 11 SECURITY FOR THE BONDS......................................................................................................................... 11 General......................................................................................................................................................... 11 Special Tax Revenues and Redemption Revenue ........................................................................................ 12 Rate and Method of Apportionment ............................................................................................................ 13 Special Taxes Are Not Within Teeter Plan.................................................................................................. 14 Priority of Lien of Special Taxes................................................................................................................. 15 Reserve Account .......................................................................................................................................... 15 Redemption Fund......................................................................................................................................... 15 Additional Bonds......................................................................................................................................... 15 Covenants of the District.............................................................................................................................. 16 THE DISTRICT.................................................................................................................................................. 18 General Description and Location of the District ........................................................................................ 18 Ownership and Development Within The District....................................................................................... 19 Entitlements ................................................................................................................................................. 21 Required Infrastructure ................................................................................................................................ 21 Property Values and the Appraisal............................................................................................................... 23 Estimated Value-to-Lien Ratios................................................................................................................... 24 Delinquency History .................................................................................................................................... 26 SPECIAL RISK FACTORS ............................................................................................................................... 27 Risks of Real Estate Secured Investments Generally................................................................................... 27 Limited Obligations..................................................................................................................................... 28 No Obligation of City .................................................................................................................................. 28 Potential Early Redemption of Bonds from Prepayments............................................................................ 28 Insufficiency of Special Taxes..................................................................................................................... 28 Failure to Develop Properties ...................................................................................................................... 29 Concentration of Ownership ........................................................................................................................ 30 Geologic, Topographic and Climatic Conditions......................................................................................... 30 Property Insurance ....................................................................................................................................... 31 Hazardous Substances.................................................................................................................................. 32 Enforcement Delays – Bankruptcy .............................................................................................................. 32 FDIC/Federal Government Interests in Parcels ........................................................................................... 32 Direct and Overlapping Indebtedness.......................................................................................................... 33 Reductions in Property Values..................................................................................................................... 34 1152

TABLE OF CONTENTS
(continued)
Page
4912-2461-8956v3/022318-0014 ii
Payment of Special Taxes is not a Personal Obligation of the Property Owners......................................... 34 No Acceleration Provision ........................................................................................................................... 34 Future Measures and Initiatives................................................................................................................... 34 Proposition 218 ............................................................................................................................................ 34 Litigation with Respect to Community Facilities Districts.......................................................................... 35 Loss of Tax Exemption................................................................................................................................ 36 Limited Secondary Market........................................................................................................................... 36 Limitations on Remedies ............................................................................................................................. 37 Potential Early Redemption of Bonds from Prepayments or Assessment Bond Proceeds .......................... 37 Cyber Security ............................................................................................................................................. 37 Impact of Economic Conditions on the Development in the District .......................................................... 37 LEGAL MATTERS............................................................................................................................................ 38 Tax Matters.................................................................................................................................................. 38 Absence of Litigation................................................................................................................................... 39 Legal Opinion .............................................................................................................................................. 40 MISCELLANEOUS ........................................................................................................................................... 40 No Rating..................................................................................................................................................... 40 Underwriting................................................................................................................................................ 40 Continuing Disclosure.................................................................................................................................. 40 Pending Legislation...................................................................................................................................... 41 Additional Information ................................................................................................................................ 41

APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT ......................................................................................................................A-1 APPENDIX B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX................................B-1 APPENDIX C FORM OF BOND COUNSEL OPINION.............................................................................C-1 APPENDIX D FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT..............................D-1

APPENDIX E FORM OF MASTER DEVELOPER CONTINUING DISCLOSURE CERTIFICATE...................................................................................................................... E-1 APPENDIX F APPRAISAL REPORT..........................................................................................................F-1 APPENDIX G DTC AND THE BOOK-ENTRY-ONLY SYSTEM.............................................................G-1 1153
4912-2461-8956v3/022318-0014

REGIONAL MAP
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4912-2461-8956v3/022318-0014
[AERIAL PHOTOS]
1155
1 OFFICIAL STATEMENT
$12,670,000*
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER) OF THE CITY OF PERRIS
SPECIAL TAX BONDS, 2026 SERIES

INTRODUCTION
The purpose of this Official Statement, which includes the cover page and Appendices hereto (the “Official Statement”), is to provide certain information concerning the sale and issuance of the Community Facilities District 2022-2 (Perris Logistics Center) of the City of Perris Special Tax Bonds, 2026 Series (the “Bonds”) issued under the Fiscal Agent Agreement (defined below).

This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement.

The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

Capitalized terms not defined herein shall have the meaning set forth in Appendix A hereto. See APPENDIX A — “SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT.” Financing Purpose
Purpose of the Bonds. The Bonds are being issued by the Community Facilities District 2022-2 (Perris Logistics Center) of the City of Perris (the “District”) pursuant to a Fiscal Agent Agreement dated as of October 1, 2026 (the “Fiscal Agent Agreement”), by and between the District and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent”). The proceeds of the Bonds will be used to (i) finance certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City of Perris (the “City”) and Eastern Municipal Water District (the “Water District”); (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds. See “FINANCING PLAN” herein.

The net proceeds of the Bonds, along with other available funds, will be used to finance the acquisition and construction of certain public improvements eligible to be financed by the District. See “FINANCING PLAN” herein.

The Bonds
The Bonds will be issued and will be secured under the Fiscal Agent Agreement by a pledge and lien on Special Tax Revenues and Redemption Revenues (as defined herein) and from certain other funds pledged under the Fiscal Agent Agreement, all as further described herein. Debt service on the Bonds is paid from the proceeds of Special Taxes levied on the taxable property within the District which remain after the payment of administrative expenses. Redemption Revenues consist of (a) amounts received from the redemption of the District Bonds from amounts constituting prepayments of special taxes or surplus funds, and (b) amounts received from the optional redemption of the District Bonds. See “SECURITY FOR THE BONDS” and APPENDIX B — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”

* Preliminary, subject to change.
1156
2 Legal Authority
The Bonds. The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “MelloRoos Act”), a resolution adopted on September 29, 2026, by the City Council (the “City Council”), acting as the legislative body of the District, and the Fiscal Agent Agreement. The Bonds are secured under the Fiscal Agent Agreement by a pledge of and lien upon Special Tax Revenues and Redemption Revenues (as defined herein) and all moneys in the Special Tax Fund (other than the Administrative Expense Account therein) as described in the Fiscal Agent Agreement.

Sources of Payment for the Bonds
Special Taxes. As used in this Official Statement, the term “Special Tax” means the annual Special Tax which has been authorized pursuant to the Mello-Roos Act and the Rate and Method to be levied upon taxable property within the District. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes” and Appendix B — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” See the caption “THE COMMUNITY FACILITIES DISTRICT.”
Under the Fiscal Agent Agreement, the District has pledged to repay the Bonds from the Special Tax Revenues remaining after the payment of certain annual Administrative Expenses of the District and from other amounts in the Special Tax Fund (other than the Administrative Expense Account therein) established under the Fiscal Agent Agreement. The Special Taxes are the primary source of security for the repayment of the Bonds.

In the event that the Special Taxes are not paid when due, the only sources of funds available to pay the debt service on the Bonds are amounts held by the Fiscal Agent in the Special Tax Fund, including amounts held in the Reserve Account therein, to the limited extent described in the Fiscal Agent Agreement. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Reserve Account of the Special Tax Fund.” Additional Bonds. The Fiscal Agent Agreement authorizes the District to issue additional bonds secured by Special Taxes on a parity with the Bonds (“Additional Bonds”) to finance additional public improvements needed with respect to the development of property located within the District or to refund all or a portion of the Bonds or any Additional Bonds, subject to certain conditions precedent set forth in the Fiscal Agent Agreement. See the caption “SECURITY FOR THE BONDS—Additional Bonds” and APPENDIX A — “SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT.” Furthermore, other public agencies whose boundaries overlap those of the District could impose additional taxes or assessment liens on the property within the District in order to finance public improvements or services to be located or provided inside of or outside of such area. The lien created on the property within the District through the levy of such additional taxes may be on a parity with the lien of the Special Taxes applicable to the property within the District. See the caption “SPECIAL RISK FACTORS—Direct and Overlapping Indebtedness.”
The District
General. The District is a community facilities district organized by the City Council under the MelloRoos Act for the purpose of providing financing for the acquisition and construction of certain public facilities to serve the property located within the District. The City Council established the District on July 25, 2023.

The District includes six non-contiguous parcels totaling approximately 339.54 gross acres zoned and entitled for industrial warehouse use which are being developed as part of a project known as the “Perris Logistics Cetner.” Three of the parcels, referred to as the “North Site,” are contiguous and bound by East 7th Street to the north, South Redlands Avenue to the west and East Ellis Avenue to the south, with the 215 Freeway located to the east. The other parcels, referred to as the “South Site,” are contiguous and bound by Mapes Road to the north, Goetz Road to the east, and Watson road to the west. The South Site originally consisted of five 1157
3 separate parcels, and on July 21, 2026, the Master Developer recorded a new parcel map to create three parcels at the South Site; however, new Assessor’s Parcel Numbers have not yet been assigned by the County. The North Site and the South Site are located within approximately two miles of each other but are not contiguous.

The first parcel in the North Site, Assessor’s Parcel No. 310-170-020, is approximately 50.01 gross acres, and is currently under construction with an approximately 982,879 square foot industrial warehouse (“North Site 1”). North Site 1 has been 100% pre-leased to Medline, Inc. The second parcel in the North Site, Assessor’s Parcel No. 310-170-021, is approximately 56.17 gross acres and has been developed with an approximately 1,018,178 square foot industrial warehouse building (“North Site 2”) which was completed in early 2025. North Site 2 is 100% leased to Lowe’s through 2035, which took occupancy of the building in April 2025. The third parcel in the North Site, Assessor’s Parcel No. 310-170-016, is approximately 55.10 gross acres and has been developed with an approximately 799,522 square foot industrial warehouse building (“North Site 3”) that was completed in 2023. North Site 3 is currently 100% leased to The Home Depot through 2043.

The three parcels in the South Site are each entitled for industrial warehouse use but are vacant with no vertical construction. One parcel in the South Site, (which originally consisted of Assessor’s Parcel Nos. 330- 120-002 and 017) is approximately 74.90 gross acres and entitled for construction of an approximately 1,385,090 square foot industrial warehouse (“South Site 1”). Another parcel in the South Site (which originally consisted of Assessor’s Parcel Nos. 330-120-018 and 020), is approximately 65.25 gross acres and entitled for construction of an approximately 1,396,020 square foot industrial warehouse (“South Site 2”). The third parcel in the South Site (which originally consisted of Assessor’s Parcel No. 330-120-021), is approximately 38.11 gross acres and entitled for construction of an approximately 535,207 square foot industrial warehouse (“South Site 3”).

The master developer of the taxable parcels within the District is IDI Logistics, LLC, a Delaware limited liability company (the “Master Developer”). The Master Developer is an industrial real estate developer and manager formed in 1989. The Master Developer was responsible for securing the entitlements for the development of the District and the construction of the backbone and in-tract public infrastructure necessary for the development of the District. Affiliates of IDI own North Site 1, North Site 2 and South Site 3.

North Site 3 is currently owned by Recline Borrower, LLC, a Delaware limited liability company (“Recline”), which acquired North Site 3 on December 7, 2023. Recline is managed by Link Logistics Real Estate, LLC (“Link Logistics”). Link Logistics is an operator of logistics real estate in the United States which was established by Blackstone Inc., a Delaware corporation (“Blackstone”) in 2019. Blackstone is the world’s largest alternative asset manager, with more than $1 trillion in assets under management.

South Site 1 is currently owned by Anatolia Perris LLC, a Delaware limited liability company (“Anatolia”), which acquired South Site 1 on April 10, 2024. Anatolia is a subsidiary of Anatolia Capital Corp (“Anatolia Capital”), which is a privately owned real estate development and management company principally located in Toronto, Canada.

South Site 2 is currently owned by Silver Hollow LLC, a Delaware limited liability company (“Silver Hollow”), which acquired South Site 2 in September 2025. Silver Hollow is an affiliated entity of WW Grainger, Inc., a leading broad line distributor with operations primarily in North America and Japan.

See the captions “THE COMMUNITY FACILITIES DISTRICT” for further information with respect to the District and the development within the District.

Formation Proceedings. The District was formed on July 25, 2023 pursuant to the Mello-Roos Act.

The Mello-Roos Act was enacted to provide an alternative method of financing certain public capital facilities and services, especially in developing areas of the State. Any local agency (as defined in the Mello-Roos Act) may establish a community facilities district to provide for and finance the cost of eligible public facilities and services. Generally, the legislative body of the local agency which forms a community facilities district acts on behalf of such district as its legislative body. Subject to approval by two-thirds of the votes cast at an election 1158
4 and compliance with the other provisions of the Mello-Roos Act, a legislative body of a local agency may issue bonds for a community facilities district and may levy and collect a special tax within such district to repay such indebtedness.

Pursuant to the Mello-Roos Act, on May 30, 2023, the City Council adopted Resolution No. 6190 (the “Resolution of Intention”), stating its intention to form the District and to authorize the levy of a special tax on the taxable property within the District, and Resolution No. 6191, stating its intention to incur bonded indebtedness in an aggregate principal amount not to exceed $25,000,000 for the purpose of financing the design, construction and acquisition of certain public facilities to serve the area within the District.

Subsequent to a noticed public hearing on July 25, 2023, the City Council adopted Resolution Nos. 6222 and 6223 on July 25, 2023 (collectively the “Resolution of Formation”). The Resolution of Formation:
(i) established the District; (ii) authorized the levy of a special tax (the “Special Tax”) within the District; (iii) determined the necessity to incur bonded indebtedness in an amount not to exceed $25,000,000 within the District; and (iv) called an election within the District on the proposition of incurring bonded indebtedness, levying the Special Tax and setting an appropriations limit.

On July 25, 2023, an election was held within the District in which the property owners within the District approved the proposition authorizing the issuance of bonds in an amount not to exceed $25,000,000 to finance the Facilities. A Notice of Special Tax Lien for the District was recorded in the office of the County Recorder on August 4, 2023, as Document No. 2023-0226647 (the “Notice of Special Tax Lien”). On August 29, 2023, the City Council adopted Ordinance No. 1430 (the “Ordinance”) which authorizes the levy of a special tax pursuant to the Rate and Method of Apportionment approved at the July 25, 2023, election (the “Rate and Method”), a copy of which is attached hereto as Appendix A.

Property Values and the Appraisal Report
An appraisal of the land and existing improvements within the District was prepared by Integra Realty Resources, Los Angeles, California, a Member Appraisal Institute, MAI appraiser (the “Appraiser”). The appraisal is dated September 9, 2026, and entitled “Appraisal of Real Property” (the “Appraisal Report”). The Appraiser has concluded in the Appraisal Report, based upon the assumptions and limiting conditions contained in the Appraisal Report, that, as of August 14, 2026 (the “Date of Value”), the aggregate minimum market value of the as-is condition of the taxable property within the District was $832,780,014, consisting of a combined appraised value of $475,120,000 for North Site 1 and the entire South Site and a combined Fiscal Year 2026-27 assessed value of $357,660,014 for North Site 2 and North Site 3. See APPENDIX F — “APPRAISAL REPORT”
The Appraisal Report is based upon a variety of assumptions and limiting conditions that are described in Appendix F . Moreover, such assumptions and limiting conditions that are described in Appendix F are based on information as of the Date of Value. The District makes no representation as to the accuracy of the Appraisal Report. See “THE COMMUNITY FACILITIES DISTRICT — Appraisal Report” and “— Estimated Value-toLien Ratios.” There is no assurance that the property within the District can be sold for the prices set forth in the Appraisal Report or that any parcel can be sold for a price sufficient to pay the Special Tax for that parcel in the event of a default in payment of Special Taxes by the Developer. See “THE COMMUNITY FACILITIES DISTRICT” “SPECIAL RISK FACTORS — Reductions in Property Values” and APPENDIX F — “APPRAISAL REPORT” herein.

Description of the Bonds
Payments. Interest on the Bonds is payable on each March 1 and September 1, commencing March 1, 2027. Principal of and premium, if any, on the Bonds shall be payable by the Fiscal Agent. See “THE BONDS — General Provisions” and “— Book-Entry Only System” herein. 1159
5 Denominations. The Bonds will be issued in denominations of $5,000 each or integral multiples thereof.

Redemption. The Bonds are subject to optional, mandatory and special mandatory redemption prior to maturity. See “THE BONDS — Redemption” herein.

Registration, Transfers And Exchanges. The Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York (“DTC”), and will be available to actual purchasers of the Bonds (the “Beneficial Owners”) under the book-entry system maintained by DTC. See “THE BONDS— Book-Entry Only System.”
The Bonds are not a debt of the City, and no revenues of the City are pledged to repayment of the Bonds.

Professionals Involved in the Offering
All proceedings in connection with the issuance of the Bonds are subject to the approval of Aleshire & Wynder, LLP (“Bond Counsel”). Aleshire & Wynder, LLP, as City Attorney, will render a legal opinion on certain matters for the District. Certain legal matters will be passed upon for the District by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, as disclosure counsel (“Disclosure Counsel”) and for Oppenheimer & Co. Inc. (the “Underwriter”), by its counsel, Kutak Rock LLP, Irvine, California. Fieldman, Rolapp & Associates, Inc. is acting as municipal advisor (the “Municipal Advisor”) to the District. Willdan Financial Services is acting as special tax consultant to the City (the “Special Tax Consultant”). U.S. Bank Trust Company, National Association, Los Angeles, California, will act as the Fiscal Agent for the Bonds.

Disclosure Counsel, the Municipal Advisor, Underwriter’s Counsel and the Underwriter will receive compensation contingent upon issuance of the Bonds.

Continuing Disclosure
The District. The District will execute a Continuing Disclosure Agreement, dated as of the Closing Date, and will covenant therein for the benefit of holders and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the District in an annual report (the “Annual Report”) to be filed no later than March 1 immediately following the end of the fiscal year, commencing with the Annual Report for the year ending June 30, 2026, and to provide notices of the occurrence of certain enumerated events; provided, however, that the initial Annual Report shall consist of the Official Statement only. Each Annual Report shall contain or include by reference the information set forth in the Continuing Disclosure Agreement.

The Annual Report and notices of enumerated events will be filed by the District with the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access system at http://emma.msrb.org/ (“EMMA”). These covenants will be made in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2 12(b)(5) (the “Rule”). During the last five years, the City has failed to comply in certain respects with their continuing disclosure obligations related to outstanding bonded indebtedness. See the caption “MISCELLANEOUS—Continuing Disclosure.”
See “MISCELLANEOUS — Continuing Disclosure” and Appendix D for a description of the specific nature of the Annual Reports and notices of listed events to be provided by the District.

Master Developer. The Underwriter does not consider the Master Developer to be an “obligated person” with respect to the Bonds for purposes of Rule 15c2-12. Notwithstanding the foregoing, to assist in the marketing of the Bonds, the Master Developer will agree to provide, or cause to be provided to EMMA, certain updates with respect to the development within the District and notices of certain enumerated events. See Appendix E for a description of the specific nature of the semiannual reports and enumerated event notices to be filed by the Master Developer.
1160
6 See “MISCELLANEOUS — Continuing Disclosure” and Appendix E for a description of the specific nature of the Annual Reports and notices of listed events to be provided by the Master Developer.

FINANCING PLAN
Purpose of Issue
The District is issuing the Bonds finance certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City and the Water District, to fund the Reserve Account and to pay the costs of issuing the Bonds. See “— Estimated Sources and Uses of Funds” below.

Estimated Sources and Uses of Funds
The anticipated sources and uses of funds from proceeds of the Bonds are as follows:

Sources:

Principal Amount of the Bonds
[Plus/Less] [Net] Original Issue [Premium/Discount]
Total Sources
Uses:

Improvement Fund
Reserve Account
Cost of Issuance(1)
Total Uses
(1) Includes fees of the Fiscal Agent, Bond Counsel, Disclosure Counsel, Municipal Advisor and Special Tax Consultant, Underwriter’s discount, and other legal fees, printing costs and other related costs.

THE BONDS
General Provisions
The Bonds will be dated their date of delivery, and the Bonds will mature in the amounts and on the dates set forth on the inside front cover hereof. The Bonds will bear interest from their dated date at the rates per annum set forth on the inside front cover hereof, payable each March 1 and September 1, commencing March 1, 2027 (each, an “Interest Payment Date”). The Bonds will be issued in fully registered form in denominations of $5,000 each or any integral multiple thereof, so long as no Bond shall have more than one maturity date.

Interest on the Bonds shall be payable on each Interest Payment Date to the person whose name appears on the Registration Books as the Owner thereof as of the Record Date immediately preceding each such Interest Payment Date, such interest to be paid by check of the Fiscal Agent mailed by first-class mail, postage prepaid, on each Interest Payment Date to the Owner at the address of such Owner as it appears on the Registration Books as of the close of business on the fifteenth day of the calendar month preceding the Interest Payment Date (the “Record Date”); provided, however, that at the written request of the Owner of at least $1,000,000 in aggregate principal amount of Outstanding Bonds filed with the Fiscal Agent prior to any Record Date, interest on such Bonds shall be paid to such Owner on each succeeding Interest Payment Date by wire transfer of immediately available funds to an account in the continental United States designated in such written request. Any such written request shall remain in effect until rescinded in writing by the Owner. Principal of and premium (if any) on any Bond shall be paid upon presentation and surrender thereof, at maturity or the prior redemption thereof, at the Corporate Trust Office. The principal of and interest and premium (if any) on the Bonds shall be payable in lawful money of the United States of America.
1161
7 Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless (a) it is authenticated on or before the Interest Payment Date and after the close of business on the preceding record date, in which event it shall bear interest from such Interest Payment Date; or (b) it is authenticated on or before February 15, 2027, in which event it shall bear interest from the Closing Date; or (c) interest with respect to any outstanding Bond is in default, such Bond shall bear interest from the Interest Payment Date to which interest has previously paid in full or made available for payment thereon payable on each Interest Payment Date. Interest on the Bonds will be computed on the basis of a 360 day year of twelve 30 day months.

The Bonds will be registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository of the Bonds. Ownership interests in the Bonds may be purchased in book-entry form only in denominations of $5,000 and any integral multiple thereof. See the subsection hereof entitled “— Book-Entry Only System.”
Redemption
Optional Redemption. The Bonds maturing on and after September 1, 20__ are subject to redemption prior to maturity at the option of the District on any Interest Payment Date on or after September 1, 20__, as a whole or in part, from such maturities as selected by the District and by lot within a maturity, from any available source of funds at the following redemption prices, expressed as a percentage of the principal amount of the Bonds to be redeemed, together with accrued interest to the date of redemption:

Redemption Dates
Redemption
Prices
September 1, 20__ and March 1, 20__ %
September 1, 20__ and March 1, 20__
September 1, 20__ and March 1, 20__
September 1, 20__ and any Interest Payment Date thereafter Mandatory Sinking Fund Redemption. The Bonds maturing September 1, 20__, are subject to mandatory redemption in part by lot, on September 1 in each year, commencing September 1, 20__ from mandatory sinking payments made by the District as provided in the Fiscal Agent Agreement, at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption in the aggregate principal amounts and on September 1 in the respective years as set forth in the following schedule; provided, however, that if some but not all of the Bonds have been redeemed pursuant to the optional redemption, special mandatory redemption from prepayment of Special Taxes or special mandatory redemption provisions as described in the Fiscal Agent Agreement, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, as determined by the District.
1162
8 Bonds Maturing September 1, 20__
Sinking Fund
Redemption Date
(September 1)
Principal Amount
to Be
Redeemed
(maturity)
The Bonds maturing September 1, 20__, are subject to mandatory redemption in part by lot, on September 1 in each year, commencing September 1, 20__ from mandatory sinking payments made by the District as provided in the Fiscal Agent Agreement, at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption in the aggregate principal amounts and on September 1 in the respective years as set forth in the following schedule; provided, however, that if some but not all of the Bonds have been redeemed pursuant to the optional redemption, special mandatory redemption from prepayment of Special Taxes or special mandatory redemption provisions as described in the Fiscal Agent Agreement, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, as determined by the District.

Bonds Maturing September 1, 20__
Sinking Fund
Redemption Date
(September 1)
Principal Amount
to Be
Redeemed
(maturity)
Special Mandatory Redemption From Prepayment of Special Taxes and Surplus Funds. The Bonds are subject to mandatory redemption prior to maturity on any Interest Payment Date on or after March 1, 2027, in whole or in part from such maturities as selected by the District and by lot within a maturity, from the redemption of the Bonds from amounts constituting prepayments of Special Taxes, from amounts transferred from the Surplus Funds held under the Fiscal Agent Agreement at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed) together with accrued interest thereon to the redemption date:

Redemption Dates
Redemption
Prices
March 1, 2027 through March 1, 20__ 103%
September 1, 20__ and March 1, 20__ 102
September 1, 20__ and March 1, 20__ 101
September 1, 20__ and any Interest Payment Date thereafter 100 See the caption “SPECIAL RISK FACTORS — Potential Early Redemption of Bonds from Prepayments or Assessment Bond Proceeds” for a discussion of the potential for a lower than expected yield on the Bonds as a result of a special mandatory redemption from prepayment of Special Taxes. 1163
9 Notice of Redemption. So long as the Bonds are held by DTC, all notices of redemption will be sent only to DTC in accordance with its procedures and will not be delivered to any Beneficial Owner.

The Fiscal Agent on behalf and at the expense of the District will mail (by first-class mail) notice of any redemption to the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books, to the Securities Depositories and to one or more Information Services, at least thirty (30) but not more than sixty (60) days prior to the date fixed for redemption. Neither failure to receive any such notice so mailed nor any defect therein will affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice will state the date of the notice, the redemption date, and the redemption price and will designate the CUSIP numbers, the Bond numbers (but only if less than all of the Outstanding Bonds are to be redeemed) and the maturity of the Bonds to be redeemed, and will require that such Bonds be then surrendered at the Corporate Trust Office of the Fiscal Agent for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date.

If at the time of mailing of any notice of optional redemption has not been deposited with the Fiscal Agent moneys sufficient to redeem all the Bonds called for redemption, such notice will state that it is subject to the deposit of the redemption moneys with the Fiscal Agent not later than the opening of business on the redemption date and will be of no effect unless such moneys are so deposited.

The District will have the right to rescind any notice of optional redemption by written notice to the Fiscal Agent on or prior to the date fixed for redemption. Any notice of such redemption will be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation will not constitute an event of default under the Fiscal Agent Agreement. The District and the Fiscal Agent will have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Fiscal Agent will send notice of such rescission of redemption in the same manner as the original notice of redemption was sent.

In addition to the foregoing notice, further notice will be given by the Fiscal Agent in said form by firstclass mail to any Bond Owner whose Bond has been called for redemption but who has failed to tender his Bond for payment by the date which is sixty days after the redemption date, but no defect in said further notice nor any failure to give all or any portion of such further notice will in any manner defeat the effectiveness of a call for redemption.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then, upon surrender of such Bond, the District will execute and the Fiscal Agent will authenticate and deliver to the Owner thereof, at the expense of the District, a new Bond or Bonds of the same series and maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond to be redeemed.

Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called will cease to be entitled to any benefit under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no interest will accrue thereon from and after the redemption date specified in such notice. All Bonds redeemed pursuant to the Fiscal Agent Agreement shall be canceled and destroyed.

District Notice. Notwithstanding any provisions in the Fiscal Agent Agreement to the contrary, upon any optional redemption or special mandatory redemption (other than sinking fund redemption) in part, the 1164
10 District will deliver a Written Certificate to the Fiscal Agent at least sixty (60) days prior to the proposed redemption date or such later date as shall be acceptable to the Fiscal Agent in the sole determination of the Fiscal Agent, so stating that the remaining payments of principal and interest on the Bonds, together with other Revenues will be sufficient on a timely basis to pay debt service on the Bonds. The District will certify in such Written Certificate that sufficient moneys for purposes of such redemption are or will be on deposit in the Redemption Fund, and is required to deliver such moneys to the Fiscal Agent together with other Redemption Revenues, if any, then to be delivered to the Fiscal Agent, which moneys are required to be identified to the Fiscal Agent in the Written Certificate delivered with the Redemption Revenues.

Book-Entry Only System
The Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of DTC, and will be available to the Beneficial Owners purchasing interests in the Bonds in the Authorized Denominations, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical delivery of the Bonds. While the Bonds are subject to the book-entry system, the principal, interest and any redemption premium will be paid by the Fiscal Agent to DTC, which in turn is obligated to remit such payment to its DTC Participants for subsequent disbursement to Beneficial Owners of the Bonds. The District gives no assurance that DTC or the DTC Participants will distribute payments or notices to Beneficial Owners.

See APPENDIX F — “DTC AND THE BOOK-ENTRY ONLY SYSTEM.” In the event that the book-entry-only system is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Fiscal Agent Agreement.
1165
11 Estimated Debt Service Schedule
The table below presents the debt service schedule for the Bonds (including mandatory sinking fund redemption) assuming there is no optional or special mandatory redemption of the Bonds prior to maturity.

DEBT SERVICE SCHEDULE FOR THE BONDS
Year Ending
September 1 Bonds Principal Bonds Interest
Total Debt
Service
2027 $ $ $
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
Total $ $ $
Source: The Underwriter.

Annual debt service for the Bonds has been structured so that, assuming no delinquencies, Special Taxes levied on the property within the North Site will generate in each Fiscal Year not less than 110% of debt service payable and Administrative Expenses (which are estimated at approximately $20,000 for the District for Fiscal Year 2026-27, and are expected to escalate at 2% per Fiscal Year), with respect to the Bonds in the calendar year that begins in that Fiscal Year. See “—Rate and Method of Apportionment” and APPENDIX B — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”

SECURITY FOR THE BONDS
General
The Bonds issued by the District are limited obligations of the District and are secured by Special Tax Revenues and Redemption Revenues, amounts on deposit in the Special Tax Fund, the Bond Fund and the 1166
12 Redemption Fund established under the Fiscal Agent Agreement. The Bonds are payable from Special Tax Revenues and amounts on deposit in the Special Tax Fund after the payment of budgeted Administrative Expenses. The District’s limited obligation to pay the principal of, premium, if any, and interest on the Bonds from Special Tax Revenues and Redemption Revenues and from certain funds pledged therefor under the Fiscal Agent Agreement is absolute and unconditional.

No Bonds issued by the District (and no Additional Bonds issued under the Fiscal Agent Agreement relating to a Bond) is a legal or equitable pledge, charge, lien or encumbrance upon any of such District’s property, or upon any of its income, receipts or revenues, except the Special Tax Revenues and Redemption Revenues collected in the District and certain funds pledged therefor under the Fiscal Agent Agreement (subject to the payment of Administrative Expenses). The Bonds are not secured by the facilities financed with the Bonds, nor any insurance proceeds related thereto. Additionally, the Bonds are not cross-collateralized. In other words, the Special Taxes from one District of the District cannot be used directly to cover any shortfall in the payment of debt service on the Bonds of another District of the District.

Except for the Special Tax Revenues and Redemption Revenues and amounts on deposit in certain funds and accounts under the Fiscal Agent Agreement, no other property of the District or the City and neither the credit nor the taxing power of the District or the City is pledged for the payment of the Bonds or related interest, and no Owner of the Bonds may compel the exercise of taxing power by the City or the District or the forfeiture of any of its property. The principal of and interest on the Bonds and premiums upon the redemption thereof, if any, are not a debt of the District or the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory limitation or restriction.

Special Tax Revenues and Redemption Revenue
Special Tax Revenues. The “Special Tax Revenues” pledged by the District for the Bonds (and any Additional Bonds) is defined in the Fiscal Agent Agreement as (the proceeds of the Special Taxes received by the District, including any scheduled payments and any prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes. Notwithstanding the foregoing, “Special Tax Revenues” do not include any penalties or interest in excess of the interest payable on the Bonds collected in connection with delinquent Special Taxes. “Special Taxes” means the special taxes levied within the District pursuant to the Mello-Roos Act, the Ordinance and the Fiscal Agent Agreement. The Special Taxes are collected in the manner and at the same time as ad valorem property taxes are collected and is subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem property taxes. See “THE COMMUNITY FACILITIES DISTRICT” and APPENDIX B — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”
The City has established a fund known as the “Special Taxes Receipt Fund.” The City will deposit Special Taxes when received in the account within the Special Taxes Receipt Fund established for the District and immediately thereafter transfer such amounts to the Fiscal Agent for deposit in the Special Tax Fund.

The Fiscal Agent, under the Fiscal Agent Agreement, will, on each date on which the Special Tax Revenues are received from the District, deposit the Special Tax Revenues in the Special Tax Fund applicable to such District. After depositing an amount of Special Tax Revenues budgeted for Administrative Expenses to the Administrative Expense Fund pursuant to a written direction of the District, no later than ten (10) Business Days prior to each Interest Payment Date, the Fiscal Agent will withdraw from the Special Tax Fund and transfer to the Bond Fund the following amounts:
1167
13 (1) To the Interest Account of the Bond Fund, an amount such that the balance in the Interest Account shall be equal to the installment of interest due on the applicable Bonds, and Additional Bonds on said Interest Payment Date; and
(2) To the Principal Account of the Bond Fund, an amount such that the balance in the Principal Account shall at least equal the principal payment (including mandatory sinking payments) due on the applicable Bonds, and Additional Bonds on said Interest Payment Date.

Administrative Expense Fund. The Fiscal Agent Agreement each establish an Administrative Expense Fund held by the Fiscal Agent. The Fiscal Agent will deposit in the Administrative Expense Fund the amount budgeted and levied for Administrative Expenses of the District. The District budgeted Administrative Expenses of approximately $20,000 in Fiscal Year 2026-27 for the District. Administrative Expenses are projected to increase at a rate of 2% annually. Amounts in the Administrative Expense Fund will be withdrawn by the Fiscal Agent and paid to the District or the City or upon its order to pay Administrative Expenses. Annually, at least five (5) days prior to the last day of each Bond Year, the Fiscal Agent will withdraw any amounts then remaining in the Administrative Expense Fund that have not been allocated to pay Administrative Expenses incurred but not yet paid, and which are not otherwise encumbered or expected to be needed for the purposes of such fund, and transfer such amounts to the Special Tax Fund.

Redemption Fund; Redemption Revenue. The Fiscal Agent Agreement each establish a Redemption Fund (which fund will consist of a “Special Mandatory Redemption Account”), to the credit of which the District, or the City on behalf of the District, shall deposit, immediately upon receipt, all Redemption Revenues received by such District or the City on behalf of the District. Redemption Revenue, as such term is used herein includes:
(a) any amounts transferred for the optional redemption of Bonds, (b) amounts transferred from the Surplus Fund for the redemption of Bonds, and (c) any amounts deposited for the Special Mandatory Redemption from prepayment of Special Taxes.

Moneys in each Redemption Fund will be held by the Fiscal Agent for the benefit of the District and the Owners of the applicable Bonds, will be disbursed as provided below and, pending any disbursement, will be subject to a lien in favor of the Owners of the applicable Bonds. Moneys in each Redemption Fund will be applied as follows:
(1) All prepayments of Special Taxes and amounts transferred from the Surplus Fund for the redemption of Bonds and Additional Bonds or transferred from the District under the Fiscal Agent Agreement and/or any Additional Fiscal Agent Agreement for the redemption of the Bonds, and Additional Bonds will be deposited in the Special Mandatory Redemption Account to be used to redeem the Bonds and Additional Bonds on the next date for which notice of redemption can timely be given. (2) Any amounts deposited for the optional redemption of the Bonds, and Additional Bonds will be deposited into the Optional Redemption Account to be used to redeem the Bonds, and Additional Bonds on the next date for which notice of redemption can timely be given.

Rate and Method of Apportionment
The Rate and Method for the Improvement Area is contained in APPENDIX B — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” All capitalized terms used in this caption “—Rate and Method of Apportionment” and not defined shall have the meaning set forth in Appendix B.

The Rate and Method imposes a Maximum Special Tax applicable to Assessor’s Parcels within the District. Each Fiscal Year, each Assessor’s Parcel within the District is required to be classified as Taxable Property, Exempt Property or Provisional Property and all such Taxable Property is subject to the levy of Special Taxes in accordance with the Rate and Method. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of the District, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 1168
14 of the Rate and Method. “Provisional Property” means all Assessor’s Parcels of Public Property, or property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 8 of the Rate and Method, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below 327.658 Acres.

The Maximum Special Tax applicable to an Assessor’s Parcel classified as Taxable Property or Provisional Property for Fiscal Year 2026-27 is $4,669 per Acre. Each July 1, the Maximum Special Tax rates for Taxable Property and Provisional Property increase by two percent of the amount in effect the prior Fiscal Year.

For each Fiscal Year, the Special Tax Requirement is to be satisfied by levying the Special Tax on all Taxable Property first by levying the Special Tax Proportionately on each Assessor’s Parcel of Taxable Property in an amount up to 100% of the applicable Maximum Special Tax, and, if additional monies are needed to satisfy the Special Tax Requirement, second by levying the Special Tax Proportionately on each Assessor’s Parcel of Provisional Property. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) accumulate funds for deposit in the Improvement Fund to pay directly or reimburse Developer for acquisition or construction of Facilities or Authorized Fees; and (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture.

The Rate and Method provides that the Special Tax shall be levied as long as necessary to meet the Special Tax Requirement for a period not to exceed 50 Fiscal Years, commencing with Fiscal Year 2023-24, provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on CFD No. 2022-2 Bonds have been paid and the City has not instructed the CFD Administrator to continue levying.

Table 1 below sets forth the project Fiscal Year 2026-27 Special Tax levy within the District.

TABLE 1
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER)
FISCAL YEAR 2026-27 SPECIAL TAX LEVY
Land Use
Classification
# of
Parcels(1)
Maximum
Special Tax Per
Acre(2)
Fiscal Year
2026-27
Applied Rate
Fiscal Year
2026-27
Dollars Levied
Taxable Property 8 $4,669 $4,669 $1,529,668
(1) On July 21, 2026, the Master Developer recorded a new parcel map to create three parcels at the South Site, one for each of South Site 1, South Site 2 and South Site 3, which results in the District consisting of a total of six separate taxable parcels.

However, new Assessor’s Parcel Numbers have not yet been assigned by the County. (2) The Maximum Special Tax escalates 2% each year.

Source: Willdan Financial Services.

Special Taxes Are Not Within Teeter Plan
The Special Taxes are not encompassed within the alternate procedure for the distribution of certain property tax levies on the secured roll pursuant to Chapter 3, Part 8, Division 1 of the California Revenue and Taxation Code (Section 4701 et seq.), commonly referred to as the “Teeter Plan.” The County has adopted a 1169
15 Teeter Plan under which a tax distribution procedure is implemented and secured roll taxes are distributed to taxing agencies with the County on the basis of the tax levy, rather than on the basis of actual tax collections.

However, by policy, the County does not include special taxes, assessments, or reassessments in its Teeter Plan.

The Special Taxes of the District are not included in the County’s Teeter Plan.

Priority of Lien of Special Taxes
Each installment of the Special Taxes and any interest and penalties thereon, constitutes a lien on the parcel of land on which it was imposed until the same is paid. Such lien is co-equal to and independent of the lien for general taxes and any other community facilities district special taxes. See “THE COMMUNITY FACILITIES DISTRICT — Direct and Overlapping Debt” herein.

Reserve Account
A Reserve Account of the Bond Fund will be established under the Fiscal Agent Agreement which account will be held by the Fiscal Agent and will be funded in an amount equal to the Reserve Requirement. An amount of $_______________, equal to the initial Reserve Requirement will be deposited into the Reserve Account from the proceeds of the Bonds. The Reserve Requirement on any calculation date will not be greater than the initial Reserve Requirement.

The Reserve Account shall be funded and maintained at the Reserve Requirement. In the event that the Fiscal Agent has actual knowledge that the amount on deposit in the Reserve Account at any time becomes less than the Reserve Requirement, the Fiscal Agent shall promptly notify the District of such fact. Promptly upon receipt of any such notice, the District shall transfer to the Fiscal Agent an amount of available Special Tax Revenues sufficient to maintain the Reserve Requirement on deposit in the Reserve Account. Amounts in the Reserve Account shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund, on any date which the principal of or interest on the Bonds becomes due and payable under the Fiscal Agent Agreement, in the event of any deficiency at any time in such fund, or at any time for the retirement of all the Bonds then Outstanding. So long as no Event of Default (as defined in the Fiscal Agent Agreement) shall have occurred and be continuing, any amount in the Reserve Account in excess of the Reserve Requirement on the Business Day preceding each Interest Payment Date shall be withdrawn from the Reserve Account by the Fiscal Agent and deposited in the Bond Fund.

Redemption Fund
There is established under the Fiscal Agent Agreement the Redemption Fund to be held by the Fiscal Agent, to the credit of which the District will deposit, immediately upon receipt, all Redemption Revenues.

Under the Fiscal Agent Agreement, Redemption Revenues include (a) amounts received from the redemption of the Bonds from amounts constituting prepayments of special taxes or surplus funds, and (b) amounts received from the optional redemption of the Bonds.

Moneys in the Redemption Fund will be held in trust by the Fiscal Agent for the benefit of the District and the Owners of the Bonds, and will be used and withdrawn by the Fiscal Agent pursuant to any optional redemption, or special mandatory redemption from prepayment of Special Taxes or from amounts transferred from the Surplus Fund in accordance with the Fiscal Agent Agreement to redeem Bonds.

Additional Bonds
The Fiscal Agent Agreement authorizes the District to issue Additional Bonds to finance additional public improvements needed with respect to the development of property located within the District or to refund all or a portion of the Bonds or any Additional Bonds, subject to certain conditions precedent set forth in the Fiscal Agent Agreement. Among other conditions precedent, in order to issue Additional Bonds for other than refunding purposes: (a) the aggregate value of the taxable property within the District, as shown in an appraisal 1170
16 prepared by an Independent Appraiser not more than six months before the date of issuance of the Additional Bonds, shall be at least five times the aggregate principal amount of: (i) the Bonds then Outstanding; (ii) the Additional Bonds proposed to be issued; and (iii) any other outstanding land-secured indebtedness payable from or secured by special taxes or assessments levied on property within the District; (b) no Special Tax levied on property within the District shall have been delinquent at any time during the eighteen (18)-month period immediately preceding the date of issuance of the Additional Bonds. For purposes of this subsection, a Special Tax shall be considered delinquent if it remains unpaid after the date on which the applicable installment becomes delinquent under applicable law, without regard to any subsequent payment, redemption, or cure; (c) at least two building permits shall have been issued for vertical construction on property located within the South Site. Each such building permit must authorize construction of a commercial or industrial building and must remain in full force and effect as of the date of issuance of the Additional Bonds. Compliance with the conditions described in the preceding sentence shall be evidenced by an Officer’s Certificate delivered to the Trustee before the issuance of the Additional Bonds, accompanied by: (i) the appraisal described in (a) above; (ii) a certificate of the official responsible for the collection of the Special Taxes confirming compliance with (b) above; and (iii) copies of the building permits, or a certificate of the applicable building official confirming the issuance and continuing effectiveness of the building permits, required by (c) above.

Among other conditions precedent, if the Additional Bonds are for refunding purposes, the District shall deliver to the Fiscal Agent a certificate from an Independent Financial Consultant to the effect that Annual Debt Service in each Bond Year after the issuance of such Additional Bonds will be less than Annual Debt Service would have been prior to the issuance of such Additional Bonds in each Bond Year in which such Additional Bonds will remain Outstanding.

See the caption “SECURITY FOR THE BONDS—Additional Bonds” and APPENDIX A — “SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT.” It is currently anticipated that a series of Additional Bonds will be issued by the District once building permits are issued for the parcels located on the South Site. See the caption “THE DISTRICT.” Covenants of the District
In the Fiscal Agent Agreement, the District will covenant as follows, among other things:

Punctual Payment. The District will punctually pay or cause to be paid the principal of, and interest and any premium on, each Bond when and as due in strict conformity with the terms of the Fiscal Agent Agreement and any Supplemental Agreements, and it will faithfully observe and perform all of the conditions, covenants and requirements of the Fiscal Agent Agreement and all Supplemental Agreements and of each Bond.

Against Encumbrance. The District will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues, or other amounts pledged to each Bond superior to or on a parity with the pledge and lien created under the Fiscal Agent Agreement for the benefit of the Bonds, except as permitted by the Fiscal Agent Agreement.

Collection of Special Tax Revenues. The District will comply with all requirements of the Mello-Roos Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes.

The Treasurer (who is the person acting in the capacity as treasurer or finance director of the City) will affect the levy of the Special Taxes each Fiscal Year on the parcels within the District in accordance with the Rate and Method, such that the computation of the levy is complete before the final date on which the auditor/tax collector of the County (the “Auditor”) will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the next secured tax roll. Upon the completion of the computation of the amounts of the levy, the Treasurer will prepare or cause to be prepared, and will transmit to the Auditor, such 1171
17 data as the Auditor requires to include the levy of the Special Taxes on the next secured tax roll. The Special Taxes so levied will be payable and be collected in the same manner and at the same time and in the same installments as the general taxes on real property are payable, and have the same priority, become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property, unless otherwise provided by the District.

In the event that the Treasurer determines to levy all or a portion of the Special Taxes by means of direct billing of the property owners of the parcels within the District, the Treasurer will, not less than forty-five (45) days prior to each Interest Payment Date, send bills to the owners of such real property located within the District subject to the levy of the Special Taxes for Special Taxes in an aggregate amount necessary to meet the financial obligations of the District due on the next Interest Payment Date, said bills to specify that the amounts so levied will be due and payable not less than thirty (30) days prior to such Interest Payment Date and will be delinquent if not paid when due.

In any event, the Treasurer will fix and levy the amount of Special Taxes within the District required (i) for the payment of principal of and interest on any outstanding Bonds becoming due and payable during the ensuing year (taking into consideration anticipated delinquencies), and (ii) to pay the Administrative Expenses during such year, all in accordance with the Rate and Method and the Ordinance. The Special Taxes so levied will not exceed the authorized amounts as provided in the proceedings pursuant to the Resolution of Formation.

The District will covenant in the Fiscal Agent Agreement, that to the extent there is a draw upon the Reserve Account pursuant to the Fiscal Agent Agreement as a result of a delinquency in the collection of Special Taxes or that the Reserve Account is underfunded, the District will cause the Treasurer to effect the next annual levy of Special Taxes in an amount sufficient to replenish such delinquency in addition to those required for the timely collection of Special Tax Revenues under the Fiscal Agent Agreement and in addition to amounts that would be levied if there were no such delinquency; provided, however, the amount of Special Taxes levied will not exceed the maximum permitted by the Mello-Roos Act, the Ordinances and the Rate and Method.

The Treasurer is authorized to employ consultants to assist in computing the levy of the Special Taxes under the Fiscal Agent Agreement and any reconciliation of amounts levied to amounts received. The fees and expenses of such consultants and the costs and expenses of the Treasurer (including a charge for City or District staff time) in conducting its duties under the Fiscal Agent Agreement will be an Administrative Expense.

Protection of Security and Rights of Owners. The District will preserve and protect the security of the Bonds and Additional Bonds and the rights of the Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the delivery of any of the Bonds and Additional Bonds by the District, the Bonds and Additional Bonds shall be incontestable by the District. In furtherance of the foregoing, the District shall not approve any reduction of the Assigned Special Taxes as provided in the Rate and Method which would prohibit the District from levying the Special Taxes in any Fiscal Year at a level that would generate Special Taxes, less the Administrative Expense Requirement, at least equal to 110% of the annual debt service in that Fiscal Year for the Bonds and any Additional Bonds expected to be issued. “Administrative Expense Requirement” is defined in the Fiscal Agent Agreement as 20,000 plus 102% of the amount of Administrative Expenses expended for the most recent complete Fiscal Year.

Commence Foreclosure Proceedings. The District will review the public records of the County in connection with the collection of the Special Taxes not later than July 31 of each year to determine the amount of Special Taxes collected in the prior Fiscal Year; and with respect to individual delinquencies, the District will send or cause to be sent a notice of delinquency and a demand for immediate payment thereof to the property owner within 45 days of such determination, and if the District determines that any single property owner subject to the Special Tax is delinquent in the payment of Special Taxes in the aggregate of $50,000 or more or delinquent in the payment of three consecutive installments of Special Tax or that the delinquent Special Taxes represent more than 5% of the aggregate Special Taxes levied within a District or if there has been a draw on the funds on deposit in the Reserve Account established under the Fiscal Agent Agreement, and if the delinquency 1172
18 remains uncured, the District will cause judicial foreclosure proceedings to be filed in the superior court within ninety (90) days of the notice to the property owner against all properties for which the Special Taxes remain delinquent. Prior to commencement of any judicial foreclosure proceedings, the District shall continue with its efforts to collect the delinquent Special Taxes by sending subsequent notice of delinquency and a demand for immediate payment thereof.

The City Attorney is authorized under the Fiscal Agent Agreement to employ counsel to conduct any such foreclosure proceedings. The fees and expenses of any such counsel and costs and expenses of the City Attorney (including a charge for City or District staff time) in conducting foreclosure proceedings is an Administrative Expense.

See APPENDIX A — “SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT” for a more complete description of the District’s covenants under the Fiscal Agent Agreement.

THE DISTRICT
General Description and Location of the District
The District is a community facilities district organized by the City Council under the Mello-Roos Act for the purpose of providing financing for the acquisition and construction of certain public facilities to serve the property located within the District. The City Council established the District on July 25, 2023.

The District includes six non-contiguous parcels totaling approximately 339.54 gross acres zoned and entitled for industrial warehouse use which are being developed as part of a project known as the “Perris Logistics Cetner.” Three of the parcels, referred to as the “North Site,” are contiguous and bound by East 7th Street to the north, South Redlands Avenue to the west and East Ellis Avenue to the south, with the 215 Freeway located to the east. The other parcels, referred to as the “South Site,” are contiguous and bound by Mapes Road to the north, Goetz Road to the east, and Watson road to the west. The South Site originally consisted of five separate parcels and on July 21, 2026, the Master Developer recorded a new parcel map to create three parcels at the South Site; however, new Assessor’s Parcel Numbers have not yet been assigned by the County. The North Site and the South Site are located within approximately two miles of each other but are not contiguous.

North Site 1 (Assessor’s Parcel No. 310-170-020) is approximately 50.01 gross acres, and is currently under construction with an approximately 982,879 square foot industrial warehouse. North Site 2 (Assessor’s Parcel No. 310-170-021) is approximately 56.17 gross acres and has been developed with an approximately 1,018,178 square foot industrial warehouse building which was completed in early 2025. North Site 3 (Assessor’s Parcel No. 310-170-016) is approximately 55.10 gross acres and has been developed with an approximately 799,522 square foot industrial warehouse building that was completed in 2023.

The three parcels in the South Site are entitled for industrial warehouse use but are vacant with no vertical construction. South Site 1 (originally Assessor’s Parcel Nos. 330-120-002 and 017) is approximately

74.90 gross acres and entitled for construction of an approximately 1,385,090 square foot industrial warehouse.

South Site 2 (originally Assessor’s Parcel Nos. 330-120-018 and 020) is approximately 65.25 gross acres and entitled for construction of an approximately 1,396,020 square foot industrial warehouse. South Site 3 (Assessor’s Parcel No. 330-120-021) is approximately 38.11 gross acres and is entitled for construction of an approximately 535,207 square foot industrial warehouse. 1173
19 Ownership and Development Within The District
Master Developer. The master developer of the taxable parcels within the District is IDI Logistics, LLC, a Delaware limited liability company (previously defined as the “Master Developer”). The Master Developer is a leading developer and operator of logistics real estate in the United States. Since 1989, they have developed and acquired more than 100 world-class business parks and 790 warehouses totaling over 226 million square feet throughout North America. The Master Developer is owned as a joint venture between La Caisse and Oxford.

La Caisse is a global investment group active in the major financial markets, private equity, infrastructure, private credit and, previously as Ivanhoé Cambridge, real estate. As of June 30, 2026, La Caisse’s net assets totaled C$552 billion. Oxford is a leading global real estate investor, developer, and manager.

Established in 1960, Oxford and their platform companies manage $86 billion of assets with a portfolio of 145 million square feet of commercial space. Their global portfolio spans four continents.

The Master Developer was responsible for securing the entitlements for the development of the District and the construction of the backbone and in-tract public infrastructure necessary for the development of the District. Affiliates of the Master Developer own North Site 1, North Site 2 and South Site 3.

IDIL Perris Logistics Center North 1, L.P., Delaware limited partnership (“IDI Perris North 1”), currently owns North Site 1. IDIL Perris Logistics Center North, L.P., a Delaware limited partnership (“IDI Perris North”) currently owns North Site 2. IDIL Perris Fulfillment Center L.P., a Delaware limited partnership (“IDI Fulfillment” and collectively with IDI North and IDI North 1, the “ IDI Property Owners”), currently owns South Site 3. The IDI Property Owners are each wholly-owned subsidiaries of the Master Developer. IDI Perris North 1 and IDI Perris North are single purpose limited partnerships in which the Master Developer is 100% limited partner and another affiliate of the Master Developer, IDIL CA GP, LLC, a Delaware limited liability company (“IDIL CA GP”), is the 100% general partner. The Master Developer is the 100% member of IDIL CA GP. IDIL CA GP is the 100% general partner of IDI Fulfillment.

North Site 1. North Site 1 is currently owned by IDI Perris North 1, which is constructing an approximately 982,879 square foot industrial warehouse. Construction of North Site 1 began in January 2026 and is currently expected to be completed in the first quarter of 2027. North Site 1 has been 100% pre-leased to Medline, Inc. (“Medline”) for use as a distribution center with a 12-year lease, with four five-year options to extend.

Medline is a publicly-traded medical-surgical products and supply chain company, serving healthcare providers across the continuum of care. Medline’s customers are primarily composed of hospitals, nursing homes and other health care providers located in the United States, Canada, Europe, Asia-Pacific (which includes Southeast Asia, Japan and Australia), Latin America (which includes Mexico), the Middle East and Africa.

North Site 2. North Site 2 is currently owned by IDI Perris North and contains one of the two completed buildings within the District. North Site 2 has been developed with an approximately 1,018,178 square foot industrial warehouse building which was completed in early 2025. North Site 2 is 100% leased to Lowe’s Home Center, LLC, which is a subsidiary of Lowe’s Companies, Inc. (“Lowe’s”), for use as a distribution center.

Lowe’s took occupancy of the building in April 2025 and the lease runs through 2035, with three five-year options to extend.
1174
20 Lowe’s is a Fortune 100 company and the world’s second largest home improvement retailer. As of January 30, 2026, Lowe’s operated 1,759 home improvement stores and outlets in the United States, representing approximately 196 million square feet of retail selling space. In addition, Lowe’s operates over 540 branch locations in the United States and Canada. Lowe’s was founded in 1921 with the opening of its first hardware store in North Wilkesboro, North Carolina. Lowe’s was incorporated in North Carolina in 1952 and has been publicly held since 1961. Lowes’ common stock is listed on the New York Stock Exchange, ticker symbol “LOW”.

South Site 3. South Site 3 is currently owned by IDI Fulfillment and is vacant land entitled for construction of approximately 535,207 square feet of industrial warehouse use. Construction drawings are underway, while the Master Developer is marketing South Site 3 for sale.

North Site 3 and Recline Borrower, LLC. North Site 3 is currently owned by Recline Borrower, LLC, a Delaware limited liability company (previously defined as “Recline”), which acquired North Site 3 on December 7, 2023. Recline is managed by Link Logistics Real Estate, LLC (previously defined as “Link Logistics”). Link Logistics is one of the largest operators of logistics real estate in the United States. Link Logistics was established by Blackstone Inc., a Delaware corporation (previously defined as “Blackstone”) in 2019. Blackstone is the world’s largest alternative asset manager, with more than $1 trillion in assets under management. Link Logistics has a real estate portfolio of over 500 million square feet under management.

North Site 3 contains one of the two completed buildings within the District. North Site 3 has been developed with an approximately 799,522 square foot industrial warehouse building that was completed in 2023 and is 100% leased to The Home Depot through 2043, with three options to extend, the first two for five additional years each and the third for an additional four years.

The Home Depot, Inc. is a publicly held company and the world’s largest home improvement retailer based on net sales for fiscal 2025. The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. The Home Depot also maintain a network of distribution and fulfillment centers, as well as mobile applications and e-commerce websites in the U.S., Canada, and Mexico. The Home Depot, Inc. is a Delaware corporation that was incorporated in 1978. The Home Depot’s common stock is listed and traded on the New York Stock Exchange, under the symbol HD.

South Site 1 and Anatolia Perris LLC. South Site 1 is currently owned by Anatolia Perris LLC, a Delaware limited liability company (previously defined as “Anatolia”), which acquired South Site 1 in April 2024. South Site 1 is currently approximately 74.90 gross acres of vacant land and is entitled for construction of approximately 1,385,090 square feet of industrial warehouse use. Anatolia is currently developing construction plans for South Site 1, and currently expects to begin construction in 2027.

Anatolia is a subsidiary of Anatolia Capital Corp (previously defined as “Anatolia Capital”). Anatolia Capital currently owns and manages over 4 million square feet of A Class industrial properties which are leased out. Anatolia Capital also currently owns over 2,000 acres of land for future industrial and residential development. Anatolia Capital is the real estate division of Anatolia Group Inc., a global private company headquartered in Toronto, Canada and founded by the Elmaagacli family, which also operates Anatolia Tile + Stone Inc., a leading brand and supplier of ceramic and stone products throughout the United States and Canada.

South Site 2 and Silver Hollow LLC. South Site 2 is currently owned by Silver Hollow LLC, a Delaware limited liability company (previously defined as “Silver Hollow”), which acquired South Site 2 in September 2025. South Site 2 is currently approximately 65.25 gross acres of vacant land entitled for construction of an approximately 1,396,020 square foot industrial warehouse. Silver Hollow is currently developing construction plans for South Site 1, and currently expects to begin construction in 2027. 1175
21 Silver Hollow is an affiliated entity of WW Grainger, Inc. (“Grainger”). Grainger, incorporated in the State of Illinois in 1928, is a broad line, distributor of maintenance, repair and operating products and services with operations primarily in North America and Japan. Grainger’s common stock is listed and traded on the New York Stock Exchange, under the symbol GWW.

Entitlements
General. In July 2010, the City approved the South Perris Industrial Project, which originally permitted approximately 7.4 million square feet of distribution warehousing uses on three non-contiguous sites in the City, generally referred to as Phase 1, Phase 2, and Phase 3. Phases 2 and 3 of the original South Perris Industrial Project are now the South Site and the North Site, respectively. In 2010, the City and the original developer of the South Perris Industrial Project entered into separate development agreements with respect to each of the North Site (the “North Site Development Agreement”) and the South Site (the “South Site Development Agreement” and, together with the North Site Development Agreement, the “Development Agreements”). In July 2010 the City Council also certified the South Perris Industrial Project Environmental Impact Report (the “EIR”) pursuant to the California Environmental Quality Act (“CEQA”), which analyzed all of the impacts of the original South Perris Industrial Project.

The Development Agreements, together with the related conditions of approval, set forth various offsite infrastructure which is required for the development of the Perris Logistics Center project within the District, which requirements are described under the caption “—Required Infrastructure.” South Site. In July 2010 the City Council approved various legislative amendments and other entitlements and approvals collectively allowing the development of 3,448,734 square feet of industrial warehouse space in four buildings on the South Site (the “Original Phase 2 Project”), as well as the South Site Development Agreement. In January 2024, the City approved various changes to the land use approvals for the Original Phase 2 Project, including a First Operating Memorandum to the Development Agreement with respect to the South Site Development Agreement to memorialize the various changes. Such changes included, among other things, decreasing the total square footage for the South Site to 3,345,217 square feet and the total buildings from four to three. The South Site Development Agreement and the related Conditions of Approval currently expire in September 2028.

North Site. In July 2010 the City Council approved various legislative amendments and other entitlements and approvals collectively allowing the development of 3,166,857 square feet of industrial warehouse space in four buildings on the North Site (the “Original Phase 3 Project”), as well as the North Site Development Agreement. In May 2020, the City approved various modifications to the land use approvals related to the North Site, including an amendment to the North Site Development Agreement, to, among other things, decrease the total square footage for the North Site to 2,358,347 square feet and the total buildings from four to three. In July 2021, the City approved various further modifications to the land use approvals related to the North Site, including a second amendment to the North Site Development Agreement, to, among other things, to allow the construction of three industrial warehouse buildings totaling 2,840,836 square feet and to create five parcels on the North Site to facilitate the three buildings. The North Site Development Agreement and the related Conditions of Approval have fully vested because building permits have been issued for each of the three parcels at the North Site, and construction of North Site 1 is currently approximately 70% complete.

Required Infrastructure
Pursuant to the Development Agreements and the Conditions of Approval for the Perris Logistics Center project, the Master Developer is required to complete certain offsite public improvements at a total estimated cost of approximately $138 million, after credits the Master Developer received for development impact fees (“DIF”) and transportation uniform mitigation fee (“TUMF”) it has paid with respect to the Perris Logistics Center Project. As of August 26, 2026, approximately $84 million of such offsite public improvements had been 1176
22 completed and approximately $54 million of such offsite public improvements were either under construction or remained to be constructed.
[The required offsite public improvements generally consist of various road and bridge improvements, including improvements to the Bonnie Road/Interstate 215 Interchange, construction of the Case Road Bridge, and various improvements to Ellis Avenue, Redlands Avenue, Case Road, Mapes Road, Watson Road, A Street and Goetz Road. All of the required offsite public improvements are expected to be completed between the second quarter of 2025 and the fourth quarter of 2026. The required offsite public improvements are generally being financed by the Master Developer’s balance sheet and are reimbursed through an escrow holdback account in connection with the sales of South Sites 1 and 2.]
The tables below set forth the categories of completed and remaining required offsite public improvements and the remaining costs of such improvements as of August 26, 2026.

TABLE 2A
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER)

OF THE CITY OF PERRIS

PERRIS LOGISTICS CENTER NORTH SITE INFRASTRUCTURE COSTS Improvement
Total Estimated
Costs
Amount Spent
Through
August 26, 2026
Remaining Costs
as of
August 26, 2026
Case Road Improvement Costs $ 21,984,082 $ 19,000,000 $ 2,984,082 Case Road Bridge 12,777,777 6,500,000 6,277,777
Ellis/Redlands 19,218,060 19,218,060 --
Bonnie Road/I-215 Interchange 5,354,153 5,354,153 --
SCRRA (Metrolink) Crossing
Improvement Fees
6,122,000 6,122,000
--
SCRRA (flagging overage) 700,000 600,000 100,000
Right-of-Way Costs 8,955,064 8,709,314 245,750
Contingency 3,000,000 -- 3,000,000
Construction Sub-Total $ 78,111,136 $ 65,503,527 $ 12,607,609 DIF Credits $ (6,792,500)
TUMF Credits $ (14,014,746)
Total North Site Costs $ 57,303,890 $ 65,503,527
Source: The Master Developer.
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23 TABLE 2A
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PERRIS LOGISTICS CENTER)

OF THE CITY OF PERRIS

PERRIS LOGISTICS CENTER SOUTH SITE INFRASTRUCTURE COSTS Improvement
Total Estimated
Costs
Amount Spent
Through
August 26, 2026
Remaining Costs
as of
August 26, 2026
Ellis Road (Goetz to Case) $ 2,153,778 $ 1,000,000 $ 1,153,778 Mapes/A-Street/Watson 20,619,113 3,000,000 17,619,113
Regional SS Mainline w/Lift Station 12,957,000 500,000 12,457,000 Goetz Road Bridge Fee 22,000,000 5,000,000 17,000,000
Perris South Trail Fee 6,104,454 1,220,890 4,883,564
Right-of-Way Costs 2,724,400 2,201,220 523,180
Contingency 9,000,000 -- 9,000,000
Construction Sub-Total $ 75,558,744 $ 12,922,110 $ 62,636,634 DIF Credits $ (5,810,636)
TUMF Credits $ (2,353,630)
Total North Site Costs $ 67,394,478 $ 12,922,110
Source: The Master Developer.

In addition the amounts described in the table above, the Master Developer is responsible for in-lieu fees totaling approximately $28.1 million for the construction of the Goetz Road Bridge and San Jacinto River Trail.

The required public infrastructure described above does not include any in-tract improvements, such as additional local roads and cul-de-sacs that may be constructed, or sewer and water connections to individual development sites, which are required to be constructed and financed by the Master Developer within the Perris Logistics Center.

Property Values and the Appraisal
Assessed Value. The Fiscal Year 2026-27 assessed value of the property within the District is $627,724,034, representing the secured assessed value established by the County Assessor as of the January 1, 2026 lien date. Assessed values do not necessarily represent market values. Article XIIIA of the California Constitution (Proposition 13) defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975/76 roll under ‘full cash value’, or, thereafter, the appraised value of real property when purchased or newly constructed or when a change in ownership has occurred after the 1975 assessment,” subject to exemptions in certain circumstances of property transfer or reconstruction. The “full cash value” is subject to annual adjustment to reflect increases, not to exceed 2% for any year, or decreases in the consumer price index or comparable local data, or to reflect reductions in property value caused by damage, destruction or other factors. Because of the general limitation to 2% per year in increases in full cash value of properties which remain in the same ownership, the county tax roll does not reflect values uniformly proportional to actual market values. There can be no assurance that the assessed valuations of the properties within the District accurately reflect their respective market values, and the future fair market values of those properties may be lower than their current assessed valuations.

Appraised Value. To ascertain the value of the property within the District without complete improvement values for Fiscal Year 2026-27 (which consists of all of the property within the District other than North Site 2 and North Site 3), the City commissioned the Appraisal Report. A copy of the Appraisal Report is attached as Appendix F to this Official Statement.
1178
24 The Appraisal Report provides a description and the Fiscal Year 2026-27 assessed value of North Site 2 and North Site 3 within the District and an estimate of the aggregate minimum market value of the as-is condition of the other taxable property within the District as of the date of value, August 14, 2026 (previously defined as the “Date of Value”). The aggregate Fiscal Year 2026-27 assessed value of North Site 2 and North Site 3 is $357,660,014. As of the Date of Value, the Appraiser estimated the minimum aggregate value of the fee simple interest of the remaining taxable property within the District was not less than $475,120,000.

The Appraisal Report is based upon a variety of assumptions and limiting conditions that are described in Appendix F. Moreover, such assumptions and limiting conditions that are described in Appendix F are based on information as of the Date of Value. The District makes no representation as to the accuracy of the Appraisal Report. See “THE DISTRICT — Property Values and the Appraisal Report” and “— Estimated Value-to-Lien Ratios.” There is no assurance that the property within the District can be sold for the assessed and/or appraised values set forth in the Appraisal Report or that any parcel can be sold for a price sufficient to pay the Special Taxes for that parcel in the event of a default in payment of Special Taxes by the owners thereof. See the caption “SPECIAL RISK FACTORS — Property Values” and APPENDIX F — “APPRAISAL REPORT” Composite Value. The table below sets forth the composite value of the property within the District, consisting of the Fiscal Year 2025-26 assessed value assigned by the County Assessor for the North Sites 2 and 3 and the appraised values set forth in the Appraisal Report for the remainder of the property within the District.

Buildings/Sites Assessor’s Parcel Number(s) Assessed/Appraised Value North Site 1 310-170-020 $ 221,000,000
North Site 2 310-170-015 166,365,714
North Site 3 310-170-016 191,294,300
South Site 1(1) 330-120-002 and 330-120-017 107,620,000 South Site 2(1) 330-120-018 and 330-120-020 95,060,000
South Site 3(1) 330-120-021 51,440,000
Total $ 832,780,014
(1) On July 21, 2026, the Master Developer recorded a new parcel map to create three parcels at the South Site, one for each of South Site 1, South Site 2 and South Site 3, which results in the District consisting of a total of six separate taxable parcels.

However, new Assessor’s Parcel Numbers have not yet been assigned by the County..

Source: Appraisal Report.

Estimated Value-to-Lien Ratios
Dividing the $832,780,014 composite value of the property within the District (consisting of the aggregate $357,660,014 Fiscal Year 2026-27 assessed value of North Site 2 and North Site 3 and the $475,120,000 appraised value of the remainder of the property within the District shown in the Appraisal Report as of the Date of Value) by the $12,670,000 principal amount of the Bonds results in an estimated value-to-lien ratio of approximately 65.73 to 1*. However, the estimated value-to-lien ratio of individual parcels varies by parcel. Such value-to-lien ratio does not include certain direct and overlapping bonded indebtedness of other public agencies within the District. See the caption “—Direct And Overlapping Bonded Indebtedness.” Table 3 below sets forth the estimated value-to-lien ratios for the taxable parcels within the District by development status and ownership based on the projected Fiscal Year 2026-27 Special Tax levy. Table 4 below sets forth the stratification of the estimated value-to-lien ratios for the taxable parcels within the District based on the projected Fiscal Year 2026-27 Special Tax levy. Tables 3 and 4 also include the $11,597,452 in overlapping bonded indebtedness.