Agenda packet — San Carlos City Council, November 14, 2022 (part 2 of 3)

Objective #1: Plan and implement measures approved by the Council in the Climate Mitigation and Adaptation Plan (CMAP).

Actions Completed:
• Identified priority strategies and actions based on timeframe and estimated greenhouse gas reduction potential.
• Key staff members identified from each department to support with CMAP implementation.
• The Council approved $100k as part of the FY 2021-23 mid-cycle budget request to implement strategies 4 and 18 in the CMAP related to electric vehicle charging and electrification incentives.

Actions in Progress:
• Working with partner agencies to develop an EV charging incentive program for multifamily buildings.

Objective #2: Update the Disposable Food Service Ware Ordinance.

Actions Completed:
• Disposable Food Ware Ordinance adopted at October 25, 2021 Council meeting. • Disposable Food Ware Ordinance updated in March 2022 to reflect changes in State law.
• Completed multiple rounds of outreach, including mailers, and direct emails, notifying food facilities of the Ordinance requirements, the upcoming enforcement date, and available resources.

Actions in Progress:
• Working with the County to conduct outreach and education to food facilities prior to October 2022 enforcement start date.

Objective #3: Perform Community Engagement and Outreach

Actions Completed:
• Presented to Central Middle School Environmental Club and discussed the City’s efforts around climate change.
• Highlighted community members for efforts taken around water conservation and home electrification in City newsletters and workshops. • Conducted outreach at the May Farmer’s Market to discuss home electri fication and available incentive programs.
• Completed Earth Day photo contest on social media.

Actions in Progress:
• Developing outreach strategy and print materials to engage with multifamily property owners and managers to promote EV charging, energy efficiency programs, and composting.

Objective #4: Update emergency plans and policies.

Actions Completed:

7.g
November 14, 2022

Packet Pg. 159

June 2022 Strategic Work Plan Update

Page 3 ends

Actions in Progress:
• A draft of the new Emergency Operations Plan has been submitted to staff by the vendor. Staff anticipates bringing a refined draft for the Council for review in September.
• Safety Element update in progress.

Objective #5: Reduce the risk and threat of wildfire and prepare the community for such an event.

Actions Completed:

Actions in Progress:

Downtown: The City of San Carlos will work with residents, property owners, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan to understand and ensure that the downtown meets the needs of the community and businesses now and into the future.

Objective #1: Implement the community engagement strategy for the Downtown Specific Plan.

Actions Completed:
• Spotlight Newsletter issued in August 2021.
• Project website launched: www.sancarlosdowntownplan.com. • Downtown Advisory Committee (DTAC) formed/appointed by Council. • Virtual library available on project website; ongoing.

Actions in Progress:
• Community engagement s trategy for focus groups, stakeholder meetings, and community wide workshops underway; first community workshop tentatively set for August 31, 2022.
• Online surveys coming soon; anticipated late summer 2022. • Email distribution list underway; approximately 200+ sign-ups.

Objective #2 : Create the Downtown Specific Plan and corresponding implementation strategies.

Actions Completed:
• Entered into Professional Services Agreement with consultants, RRM Design. • Project kickoff meeting with citywide staff completed. • City staff and consultant walking/site tour completed. • Individual interviews with City Council members completed. • Data transfer and initial information gathering completed. • Project logo and website completed.
• DTAC first meeting on June 22.

Actions in Progress:
• Community Engagement Strategy
• Infrastructure existing conditions analysis
• Transportation and mobility

7.g
November 14, 2022

Packet Pg. 160

June 2022 Strategic Work Plan Update

Page 4 ends

• Develop planning principles
• Community workshop #1
• Online survey
• Focus Group meetings (4 mtgs)
• Historic resources inventory
• DTAC meeting #2
• Community workshop #2
• Online survey
• Focus Group Meetings (4 mtgs)
• Planning Commission and City Council Study Sessions
• Economic studies
• DTAC Meeting #3
• Community Workshop #3
• Online Survey
• Meetings with YAC, EDAC, PRC, and T& C
• Planning Commission and City Council Study Sessions
• Prepare Infrastructure and Services Plan
• Administrative Draft Specific Plan
• Public Review Draft Specific Plan
• DTAC Meeting #3
• Community Open House
• Meetings with YAC, EDAC, PRC, and T& C
• Planning Commission Study Session
• City Council Study Sessions
• Prepare Hearing Draft Specific Plan
• Prepare Draft CEQA document
• Planning Commission public hearing
• City Council adoption hearing
• Final Specific Plan document
• Identify and prioritize key opportunity sites
• Timing of public improvements
• Identification of municipal incentives
• Designate lead departments, agencies for implementation • Identify potential funding sources and financing mechanisms

Objective #3: Ensure that the vision and goals of the Downtown Specific Plan come to fruition.

Actions Completed:

Actions in Progress:
• Identify potential funding sources and financing mechanisms (recommendations will be specifically tied to the Downtown Specific Pl an Infrastructure Development and Services Plan) (expected in 10/2023).

Housing: The City of San Carlos will actively encourage and support the creation of housing to provide a safe, inclusive, diverse, and affordable supply by facilitating development of housing for all income levels.

7.g
November 14, 2022

Packet Pg. 161

June 2022 Strategic Work Plan Update

Page 5 ends

Objective #1: Increase the number of Below Market Rate (BMR) housing units to meet local and regional housing requirements (e.g.: regional collaboration, grant programs, acquisition, and new development).

Actions Completed:
• Updated the BMR Ordinance to increase the number of affordable units on June 13, 2022 increasing the percentage of units and deepening the level of affordability required in residential ownership projects. The Council also extended affordability periods in perpetuity, addressed issues around unbundled parking, and made other conforming amendments to encourage the production and preservation of BMR units.

Actions in Progress:
• Explore the acquisition of Market Rate units to convert to BMR and complimentary strategies for leveraging BMR Housing Funds to increase BMR housing supply. Staff is reviewing and working with representatives f rom two programs, one from the California Community Housing Agency (CalCHA) and the other from the California Statewide Communities Development Authority (CSCDA).
• Staff and program representatives are currently analyzing the City’s real estate market to determine whether these programs will be feasible in San Carlos. Research of opportunities for partnerships, including nonprofits, the School District, and regional partners is ongoing.

Objective #2 : Continue to develop and prepare a focused general plan update that includes the Housing Element, the Safety Element, and the Land Use Element to meet Council direction and State mandates.

Actions Completed:
• Spotlight Community Outreach Newsletter issued.
• Housing Needs Assessment, Existing Conditions Atlas developed. • Community Workshop Survey Results completed.
• First phase of community outreach and input completed, including solutions to meet the City’s Regional Housing Needs Allocation through increased densities and heights along El Camino Real and in mixed- use and multi -family zoning districts.
• Environmental Analysis Scoping meeting held in January 2022.

Actions in Progress:
• Preparing Administrative Draft Zoning Amendments.
• Preparing Administrative Drafts of the Land Use, Safety, and Housing Elements. • Draft Housing Element policies expected in July 2022.

Objective #3: Facilitate completion of projects currently underway.

Actions Completed:
• Completed regulatory agreements for market rate multi-family projects building BMR units. Agreements completed for projects at 1501 Cherry Street, 560 El Camino Real, and 1525 San Carlos . This action will remain ongoing as additional projects move forward.

7.g
November 14, 2022

Packet Pg. 162

June 2022 Strategic Work Plan Update

Page 6 ends

• Large Office Development projects. $4.3 million in Commercial Linkage fees collected from projects at 1091 and 777 Industrial Road. Fee collection will continue as projects come forward. Fee estimates totaling $1.8 million have also been prepared and likely to be paid in the coming months for 1030 Brittan and 993 Laurel. • 817 Walnut Street Development Project. Construction has been completed and a ribbon cutting was held on June 7, 2022. Lease -up from the City’s BMR waitlist is currently underway and most units have already been filled.

Actions in Progress:
• Cherry Street Affordable Housing Development Project . Predevelopment Loan Agreement approved and executed with planning process fully underway after acquisition of 1234 Cherry Street property. Development Agreement expected to come before Council for review in 2022.
• 806 Alameda de las Pulgas BMR Units. Pending.
• Vista Del Grande BMR Units. Pending.

Objective #4: Increase Housing Production

Actions Completed:
• Updated ADU Ordinance to remove current constraints t o the construction of additional units. Introduced to Council on June 13.
• Contract approval and appropriation of funds by City Council for Objective Design Standards. Consultant MIG Hired. First Community Workshop held on May 4 and first RDRC/Planning Commission Study Session held on June 6.
• Community Workshop and study session with RDRC and Planning Commission re:

SB-9 Permanent Ordinance.

Actions in Progress:
• Meeting with various ADU builders and other jurisdictions to understand best practices for expediting approvals for ADUs and creating a “preapproval” program. Meeting scheduled for end of June.
• Objective Design Standards – Community Survey to be released within two months for both Single-Family and Multi-Family standards.
• Objective Design Standards – Continue to work on development of standards. • SB-9 Permanent Ordinance – Developing permanent Ordinance; anticipated for Council review in September.

Mobility, Traffic and Transportation Infrastructure: The City of San Carlos will actively pursue plans and strategies for improving mobility, traffic, parking, transportation infrastructure, and street maintenance while encouraging alternative modes of transportation to provide efficient, safe, and effective movement throughout the city.

Objective #1: Identify and implement alternative modes of transportation (non-vehicular) to improve traffic flow and parking.

Actions Completed:
• San Carlos Quick -Build Project was reviewed and subsequently cancelled due to conflicts with the extended parklets along San Carlos Avenue.

Actions in Progress:

7.g
November 14, 2022

Packet Pg. 163

June 2022 Strategic Work Plan Update

Page 7 ends

• Continue to work with developers for community benefits to enhance mobility as opportunities arise.

Objective #2: Identify and implement citywide street and intersection projects and initiatives to improve traffic flow and parking.

Actions Completed:
• Engaged consultant for Citywide Traffic Signal Study.

Actions in Progress:
• Performing data gathering and analysis for Citywide Traffic Signal Study. • Analyzing neighborhood traffic improvements in the Greater East San Carlos Neighborhood through a series of facilitated community meetings.

Objective #3: Develop community education, reporting, outreach , and information tools using change management principles and practices.

Actions Completed:
• Identified custom webpage needs specifically suited to project-oriented display.

Actions in Progress:
• Working with consultant to develop mapping requirements for project webpage. • Continue to collaborate with City’s Communications Coordinator to increase project notifications and media postings.

Objective #4: Identify and implement enhanced traffic and pedestrian safety opportunities.

Actions Completed:
• Completed Safe Routes to School maps and improvements and developed improvement plans.

Actions in Progress:
• Continue to address ways to enhance traffic and pedestrian safety through education and enforcement.

Objective #5: Facilitate completion of projects currently underway.

Actions Completed:
• Analyzed crosswalk improvements at SCA and Kenton, SCA and Prospect, and intersection of School Street, Woodland Avenue, and Chestnut Street.

Actions in Progress:
• San Carlos Avenue Pedestrian Safety Improvements Phase 3 from Wellington to Beverly.
• Continue collaborating on the design for the Four Corners Project with Belmont and the school districts.

7.g
November 14, 2022

Packet Pg. 164

June 2022 Strategic Work Plan Update

Page 8 ends

Northeast Area Specific Plan: The City of San Carlos will work with residen ts, property owners, stakeholders, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan in response to continued development interest in the life sciences and biotechnology sectors, and develop policies and strategies to incorporate housing as part of this new development.

Objective #1: Create a framework and inform the community.

Actions Completed:
• Met with Economic Development Subcommittee to discuss proposed project and project goals.

Actions in Progress:
• Spotlight Newsletter set to release end of July.

Objective #2: Obtain Funding.

Actions Completed:
• Project (Specific Plan) funding appropriated by Council.

Actions in Progress:

Objective #3: Determine staff resources and budget needed to develop the plan.

Actions Completed:
• Council approved 1 additional (Associate) Planner for the Advance Planning Division. • Recruitment underway; interviews held June 23.

Actions in Progress:
• Official hire expected by end of July.

Objective #4: Develop a scope of work to create a Northeast Area Specific Plan.

Actions Completed:
• Met with City Council Economic Development Subcommittee to review and provide input on RFP.
• RFP Released.

Actions in Progress:
• RFPs due June 24, 2022.

Senior Services and Programming: Make San Carlos a great place to mature and retire by fostering full participation of seniors in community life and promoting healthy and active aging.

Objective #1: Continue to work with the Age-Friendly Community Task Force on Action Plan items identified in the AARP Age-Friendly application.

Actions Completed:

7.g
November 14, 2022

Packet Pg. 165

June 2022 Strategic Work Plan Update

Page 9 ends

• Staff met with volunteers of the Medical Equipment Lending Program to offer a facility in the fall for a drop off event and offered to share promotion/advertising of MELP online and through various City communication channels.

Actions in Progress:
• Staff will schedule a meeting with Public Works staff on upcoming projects identified in the Bike/Ped Plan to review senior-friendly improvements as the new Supervisor of Senior Programs transitions into their new role.
• Staff is scheduling a meeting with the Age-Friendly Task Force in August to discuss project updates.

Objective #2: Continue to engage seniors on preferred programming and events.

Actions Completed:

Actions in Progress:
• Staff developing survey to community to find ways to engage non-participants and will develop a Senior-focused City “Spotlight” issue.

7.g
November 14, 2022

Packet Pg. 166

November 2022 Strategic Work Plan Update

Page 1 of 8 ends

C I T Y O F S A N C A R L O S
N O V E M B E R 2 0 2 2 S T R A T E G I C W O R K P L A N U P D A T E Child Care and Youth Programming: The City of San Carlos will encourage and support the creation of child care facilities and promote access to youth programming.

Objective #1: Increase access to child care by reducing barriers to creation and expansion of child care facilities and creating community resources.

Actions Completed:
•Adopted an ordinance adding Chapter 8.52 to the San Carlos Municipal Code establishing a child care development impact fee for new nonresidential developments in the city on June 27, 2022.
•Adopted fee levels for new nonresidential child care development impact fees on September 26, 2022.

Actions in Progress:
•Establish a child care development impact fund.
•Continue to analyze the possibility of allowing commercial child care centers in the GCI Zoning District and within religious/community facilities in residential districts.

Objective #2: Address the community’s needs for youth programming.

Actions Completed:
•The San Carlos Youth Center Member Focus Group was formed for youth to provide input on future programming.

Actions in Progress:
•Work on youth programming based on community and participant feedback. Continue to evaluate programs and make adjustments on seasonal basis. •Monthly special events are being planned for the Drop-In Program.

Climate Change: The City of San Carlos will support sustainability initiatives and address climate change. As part of its focus on climate change, the City of San Carlos will continue to prepare for public safety emergencies, such as wildfire, earthquake, flood, power outage, school safety and other potential community emergencies by developing and implementing risk mitigation and reduction strategies.

Objective #1: Plan and implement measures approved by the Council in the Climate Mitigation and Adaptation Plan (CMAP).

Actions Completed:
•Obtained two grants between June and October for a streamlined solar permitting tool from California Energy Commission (up to $40k) and a water heater replacement from PG&E ($18k).
•Coordinated a session with multidisciplinary team, including One Shoreline, and invited Burlingame to present and share best practices regarding creek setbacks and buffer zones and minimum floor elevations as they relate to the City's zoning code.

7.g
November 14, 2022

Packet Pg. 167

November 2022 Strategic Work Plan Update

Page 2 of 8 ends

Actions in Progress:
•Working with partner agencies to develop an EV charging incentive program for multifamily buildings.

Objective #2: Update the Disposable Food Service Ware Ordinance.

Actions Completed:
•Completed multiple rounds of outreach, including mailers, and direct emails, notifying food facilities of the Ordinance requirements, the upcoming enforcement date, and available resources.

Actions in Progress:
•Working with the County to bring food facilities into compliance with the Disposable Food Ware Ordinance since the October 2022 enforcement start date.

Objective #3: Perform Community Engagement and Outreach Actions Completed:
•Highlighted efforts taken around water conservation and home electrification in City newsletters and social media.

Actions in Progress:
•Developed outreach strategy and print materials to engage with multifamily property owners and managers to promote EV charging, energy efficiency programs, and composting for distribution in November 2022.

Objective #4: Update emergency plans and policies.

Actions Completed:
•Completed the draft the Safety Element and submitted it to the Planning and Transportation Commission for review. This effort is led by CDD with support from key staff from Fire, Public Works, and Police, and is part of the Focused General Plan Update to address Land Use, Housing, and Safety Elements of the General Plan.

Actions in Progress:
•Draft Safety Element will be submitted to the Council for approval on January 23, 2023. •Staff has reviewed the first draft of the Emergency Operations Plan. Staff anticipates bringing a final draft for the Council’s review in 1Q2023.

Objective #5: Reduce the risk and threat of wildfire and prepare the community for such an event.

Actions Completed:
•Fuel reduction work was completed for the 2022 season in open space and some developed parks as well as City-owned parcels .
•Redwood City Fire hosted Fall Community Emergency Response Team (CERT) Academy training spanning September and October for residents of Redwood City and San Carlos.
•Redwood City Fire and the Sheriff’s Office hosted a community wildfire preparedness webinar in August.

7.g
November 14, 2022

Packet Pg. 168

November 2022 Strategic Work Plan Update

Page 3 of 8 ends

•The City Manager’s Office updated the www.cityofsancarlos.org/wildfire webpage with curated information about preparedness, ways to stay informed, meeting information, and useful links.

Actions in Progress:
•Staff is meeting with contractors in November to determine the 2023 schedule for fuel reduction work.
•The Annual Safety Fair will be held in spring 2023
Downtown: The City of San Carlos will work with residents, property owners, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan to understand and ensure that the downtown meets the needs of the community and businesses now and into the future.

Objective #1: Implement the community engagement strategy for the Downtown Specific Plan.

Actions Completed:
•Virtual library available on project website; ongoing. •First community workshop held August 2022 with 150 participants. •Three DTAC meetings held during summer and fall of 2022. •Released online interactive mapping tool to gather community input.

Actions in Progress:
•Virtual library available on project website; ongoing. •Continue to inform and provide updates to the community regarding next steps via outreach and www.sancarlosdownplan.com website, including preparation for Community Workshop #2.

Objective #2: Create the Downtown Specific Plan and corresponding implementation strategies.

Actions Completed:
•Completed infrastructure existing conditions analysis, held first DTAC meeting and community workshop, hosted four focus group meetings, and posted an online survey.

Actions in Progress:
•Concept plan alternatives are pending DTAC meeting #2, Community Workshop #2, an online survey, four focus group meetings, Planning and Transportation Commission and City Council Study Sessions, and economic studies.

Objective #3: Ensure that the vision and goals of the Downtown Specific Plan come to fruition.

Actions Completed:

Actions in Progress:
•Identify potential funding sources and financing mechanisms (recommendations will be specifically tied to the Downtown Specific Plan Infrastructure Development and Services Plan) (expected in 10/2023).

7.g
November 14, 2022

Packet Pg. 169

November 2022 Strategic Work Plan Update

Page 4 of 8 ends

Actions Completed:
•Updated the BMR Ordinance to increase the number of affordable units on June 13, 2022, increasing the percentage of units and deepening the level of affordability required in residential ownership projects.

Actions in Progress:
•Explore the acquisition of Market Rate units to convert to BMR and complimentary strategies for leveraging BMR Housing Funds to increase BMR housing supply. Staff is reviewing and working with representatives from two programs, one from the California Community Housing Agency (CalCHA) and the other from the California Statewide Communities Development Authority (CSCDA).
•Staff and program representatives are currently analyzing the City’s real estate market to determine whether these programs will be feasible in San Carlos. Research of opportunities for partnerships, including nonprofits, the School District, and regional partners is ongoing.

Objective #2: Continue to develop and prepare a focused general plan update that includes the Housing Element, the Safety Element, and the Land Use Element to meet Council direction and State mandates.

Actions Completed:
•Explored existing conditions and preliminary options, developed preferred options and analysis, prepared administrative and draft housing, land use, safety elements and zoning amendments, prepared environmental analysis, prepared drafts of the land use, safety, and housing elements.

Actions in Progress:
•Continue to receive public comments including comments on the draft environmental impact report due November 28, 2022.
•Preparing for public hearing in January 2023.

Objective #3: Facilitate completion of projects currently underway.

Actions Completed:
•Disposition Development and Loan Agreement for Cherry Street Development Project expected to come before the Council for review in January 2023. •$4.3 million in commercial linkage fees collected from projects at 1091 and 777 Industrial Road. Fee collection will continue as projects come forward.

Actions in Progress:
•806 Alameda de las Pulgas BMR Units. Pending.

7.g
November 14, 2022

Packet Pg. 170

November 2022 Strategic Work Plan Update

Page 5 of 8 ends

•Vista Del Grande BMR Units. Pending.

Objective #4: Increase Housing Production
Actions Completed:
•Updated ADU Ordinance to remove current constraints to the construction of additional units. Introduced to the Council on June 13, 2022. •Contract approval and appropriation of funds by City Council for Objective Design Standards. Consultant MIG Hired. Held Second Community Workshop held on October 19, 2022.

Actions in Progress:
•Meeting with various ADU builders and other jurisdictions to understand best practices for expediting approvals for ADUs and creating a standardized plans/compliance units program.
•Objective Design Standards – Community Survey to be released within two months for both single-family and multi-family standards.
•Objective Design Standards – Continue to work on development of standards. •Council to consider extending urgency ordinance at November 28, 2022 meeting.

Expect an SB-9 Permanent Ordinance by 3Q23.

Objective #1: Identify and implement alternative modes of transportation (non-vehicular) to improve traffic flow and parking.

Actions Completed:
•Staff applied for grants with OBAG and ATC related to transportation, traffic, and mobility and were unsuccessful (as were all other cities in San Mateo County that applied).

Actions in Progress:
•Continue to work with developers for community benefits to enhance mobility as opportunities arise.
•Participating in C/CAG-led (City/County Association of Governments of San Mateo County) to assess feasibility of a shared, regional program.

Objective #2: Identify and implement citywide street and intersection projects and initiatives to improve traffic flow and parking.

Actions Completed:
•Consultant completed citywide inventory of all 24 traffic signals for Citywide Traffic Signal Study.
•Four community outreach meetings and one City Council study session was held to identify possible traffic improvements in Greater East San Carlos Neighborhood.

Actions in Progress:

7.g
November 14, 2022

Packet Pg. 171

November 2022 Strategic Work Plan Update

Page 6 of 8 ends

•Performing data gathering and analysis for Citywide Traffic Signal Study with internal stakeholder team to develop shared goals and objectives and develop uniform standards and specifications for future upgrades.
•Staff is considering traffic circles as traffic improvement measures at Rosewood and Morse, along Cordilleras, and along Alameda de las Pulgas. •Continuing to implement Annual Pavement and Rehabilitation Program to increase Pavement Condition Index (PCI) of City’s streets.

Objective #3: Develop community education, reporting, outreach, and information tools using change management principles and practices.

Actions Completed:
•Worked with consultant to develop mapping requirements for project webpage. •Worked closely with City Communication Manager to develop post cards and outreach for San Carlos Avenue (SCA) Phase III and outreach for the Safe Routes to School survey.

Actions in Progress:
•Development of citywide construction activities webpage and map is in progress. •Continue to collaborate with City’s Communications Manager to increase project notifications and media postings.

Objective #4: Identify and implement enhanced traffic and pedestrian safety opportunities.

Actions Completed:
•Completed extensive public outreach period to allow for public comments on Safe Routes to school improvement plans.

Actions in Progress:
•Staff is currently reviewing and assessing public comment and will bring proposed plans to the Planning and Transportation Commission in 1Q2023. •Continue to address ways to enhance traffic and pedestrian safety through education and enforcement.

Objective #5: Facilitate completion of projects currently underway.

Actions Completed:
•Design of crosswalk improvements at SCA and Kenton, SCA and Prospect, and SCA and Woodland completed.
•Publicized a public workshop to the San Carlos Community via the City’s social media channels for the Alameda De Las Pulgas Corridor Improvement Project near Carlmont High School and Tierra Linda Middle School led by the City of Belmont.

Actions in Progress:
•Continue to collaborate with the school districts and the City of Belmont on the Alameda De Las Pulgas Corridor Improvement Project near Carlmont High School and Tierra Linda Middle School.
•Construction of crosswalk improvements at SCA and Kenton, SCA and Prospect, and SCA and Woodland expected to be completed 1Q2023.

7.g
November 14, 2022

Packet Pg. 172

November 2022 Strategic Work Plan Update

Page 7 of 8 ends

•San Carlos Avenue Pedestrian Safety Improvements Phase 3 from Wellington to Beverly.

Northeast Area Specific Plan: The City of San Carlos will work with residents, property owners, stakeholders, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan in response to continued development interest in the life sciences and biotechnology sectors, and develop policies and strategies to incorporate housing as part of this new development.

Objective #1: Create a framework and inform the community.

Actions Completed:
•Presented draft process to the Economic Development for review and input. •Presented draft process to the City Council for review and input. •Included update in Good Living Newsletter (Oct-Dec 2022).

Actions in Progress:
•Spotlight Newsletter planned for 3Q2023.
•Community outreach is ongoing.

Objective #2: Obtain Funding.

Actions Completed:
•Project (Specific Plan) funding appropriated by Council.

Actions in Progress:

Objective #3: Determine staff resources and budget needed to develop the plan.

Actions Completed:
•Interviews for Associate Planner are pending.
•The City Council authorized contract with Perkins+Will in September 2022.

Actions in Progress:
•Anticipating early 2023 as start date for new Associate Planner.

Objective #4: Develop a scope of work to create a Northeast Area Specific Plan.

Actions Completed:
•Completed in May 2022.

Actions in Progress:

7.g
November 14, 2022

Packet Pg. 173

November 2022 Strategic Work Plan Update

Page 8 of 8 ends

Senior Services and Programming: Make San Carlos a great place to mature and retire by fostering full participation of seniors in community life and promoting healthy and active aging.

Objective #1: Continue to work with the Age-Friendly Community Task Force on Action Plan items identified in the AARP Age-Friendly application.

Actions Completed:
•Medical Equipment Lending Program volunteers attended the Farmers’ Market in June to promote the program in the community. Mailed City “Spotlight” on senior resources and programs in September to all residents, which spurred interest in volunteering and program participation.
•Met with CAFÉ Center for Age Friendly Excellence on next steps to complete the action plan as part of the Age Friendly Community initiative.

Actions in Progress:
•Staff has offered a park or facility for MELP to host another equipment drop off event. •Staff will schedule a meeting with Public Works staff on upcoming projects identified in the Bike/Ped Plan to review senior-friendly improvements as the new Supervisor of Senior Programs transitions into their new role.
•Staff is scheduling a meeting with the Age-Friendly Task Force this fall to discuss project updates.

Objective #2: Continue to engage seniors on preferred programming and events.

Actions Completed:
•In light of the overwhelmingly positive community response to the senior-focused “Spotlight,” staff has been collecting in-person feedback from existing and new participants regarding their preferred events and programming.

Actions in Progress:
•Staff developing survey to community to find ways to engage non-participants and will develop a senior-focused City “Spotlight” issue.

7.g
November 14, 2022

Packet Pg. 174

CITY COUNCIL

STAFF REPORT
MEETING DATE: November 14, 2022
ITEM TITLE: Authorize Cancellation of the December 26, 2022 City Council Meeting.

RECOMMENDATION:

Staff recommends that the City Council authorize the cancellation of its regular City Council meeting of December 26, 2022.

FISCAL IMPLICATIONS:

There would be a direct cost savings of $200 by not videotaping the Council meeting.

BACKGROUND:

Traditionally, the City Council cancels its second meeting in December due to high vacation use and inability to interact with other public agencies. In addition, City facilities, including City Hall, the Adult Community Center, and the Youth Center, will be closed and most City services and activities are suspended from December 26, 2022 through January 2, 2023. Emergency services (Police, Fire, Storm, Sewer, and Road Repair) will continue during this furlough period.

ALTERNATIVES:

The options available to the City Council include:

1. Authorize the cancellation of the December 26, 2022 City Council meeting; or

2. Do not authorize the cancellation of the December 26, 2022 City Council meeting; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk
Approved for submission by:
_______________________
Jeff Maltbie, City Manager

7.h
November 14, 2022

Packet Pg. 175

CITY COUNCIL

STAFF REPORT
MEETING DATE: November 14, 2022
ITEM TITLE: Adopt Ordinance 1591 Amending San Carlos Municipal Code Chapter

8.20 - Explosives, Amending its Title, Adding Provisions for Regulation, Fines and Penalties for Possession and Use of Fireworks and Increasing the Penalties for Explosives.

RECOMMENDATION:

Staff recommends that the City Council adopt an Ordinance amending Chapter 8.20 Explosives, to amend its title, add provisions for regulation, fines, and penalties for possession and use of fireworks, and increase the penalties for explosives. Should the Council adopt the Ordinance, it will become effective on December 14, 2022.

FISCAL IMPLICATIONS:

Enactment of this Ordinance could require a small level of staff resources for enforcement. An increased level of enforcement work would likely be required around the July 4th and New Year’s holidays.

BACKGROUND:

This proposed Ordinance was introduced at the City Council meeting of October 24, 2022. Illegal and dangerous fireworks can be a public nuisance for the noise and dangerous conditions they can cause. The possession and use of fireworks has the potential to create injury, property damage, fire hazards, and cause significant distress to the residents of San Carlos. The current code sections on the use of fireworks is limited to Chapter 15.04 of the Municipal Code and does not include detailed information on definitions or violation penalties. This proposed amendment to the San Carlos Municipal Code will allow the City to better curtail the use of dangerous fireworks and increase fines for the use of such fireworks and other explosives to modern amounts. The attached Ordinance is designed to provide updated definitions, clearer regulations, and more severe penalties for the possession and use of fireworks. The existing chapter penalties were last adopted in 1926. The maximum fine and maximum time in custody for convictions has increased since that time.

ANALYSIS:

The Health and Safety Code allows for individual jurisdictions to create ordinances to supplement the State Fireworks Law. This proposed Ordinance provides definitions in line with the State Fireworks Law for “Dangerous Fireworks” and “Safe and Sane Fireworks” and prohibits the possession, use, discharge, and display of these fireworks. Additionally, the amended code makes it a violation for a person to abet or conceal another person’s use of fireworks. Any violation

7.i
November 14, 2022

Packet Pg. 176

will be considered a misdemeanor and is subject to a $1,000 fine and up to six months imprisonment. These penalties are non-exclusive and in addition to penalties provided for under the State Fireworks Law.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt Ordinance 1591 Amending San Carlos Municipal Code Chapter 8.20 - Explosives, Amending its Title, Adding Provisions for Regulation, Fines, and Penalties for Possession and Use of Fireworks, and Increasing the Penalties for Explosives; or

2. Do not adopt Ordinance 1591; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Gregory Rubens, City Attorney
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Ordinance 1591

7.i
November 14, 2022

Packet Pg. 177

ORDINANCE NO. 1591

AN ORDINANCE OF THE CITY OF SAN CARLOS AMENDING SAN CARLOS MUNICIPAL CODE CHAPTER 8.20 - EXPLOSIVES, AMENDING ITS TITLE, ADDING

PROVISIONS FOR REGULATION, FINES AND PENALTIES FOR POSSESSION AND USE OF FIREWORKS AND INCREASING THE PENALTIES FOR EXPLOSIVES. ____________________________________________________________________________ WHEREAS, Chapter 8.20 of the San Carlos Code governs the use of explosives; and WHEREAS, the City Council now desires to amend Chapter 8.20 of the San Carlos Municipal Code to add provisions related to fireworks and increase the penalties for explosives; and
WHEREAS, the City Council of the City of San Carlos is the decision-making body for this Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CARLOS DOES ORDAIN AS FOLLOWS:

SECTION 1. The forgoing recitals are true and correct and constitute the findings in this matter.

SECTION 2. Section 8.20.030 as written is repealed.

SECTION 3. The following sections are hereby added to Chapter 8.20 of the San Carlos Municipal Code:

Sec. 8.20.030. Definition – Firework
The most current adopted definitions set forth in State Fireworks Law (California Health and Safety Code Sections 12500 et seq.) will define terms used in this Article unless otherwise defined in this Code.
a. “Dangerous Fireworks” includes all fireworks specified as such in Section 12505 of the California Health and Safety Code or any safe and sane firework altered in any manner that makes them more dangerous.
b. “Safe and sane fireworks” means any fireworks specified as such in Section 12529 of the California Health and Safety Code.

Sec. 8.20.040 Prohibition – General Prohibition against Possession, Use, Discharge, or Display of Dangerous Fireworks
No person shall possess, use, discharge, or display any dangerous fireworks within the City without a permit issued by the Fire Chief or their designee pursuant to Section 12640 of the California Health and Safety Code.

Sec. 8.20.050 Prohibition – General Prohibition against Possession, Use, Discharge, or Display of Safe and Sane Fireworks

7.i
November 14, 2022

Packet Pg. 178

No person shall possess, use, discharge, or display any safe and sane fireworks within the City without a permit issued by the Fire Chief or their designee pursuant to Section 12640 of the California Health and Safety Code.

Sec. 8.20.060 Violation – Penalty
a. Any person violating any provisions of this chapter or any of the provisions and conditions of the permit granted under this chapter shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $1,000, or by imprisonment of the County Jail of San Mateo not exceeding six months, or by both such fine and imprisonment. b. Causing, permitting, adding, abetting, or concealing a violation of any provisions of this chapter and conditions of a permit granted under this chapter shall also constitute a violation.
c. The remedies provided by this Article are cumulative and in addition to any other remedy provided under Federal, State, or local law including the State Fireworks Law.

SECTION 4: CEQA. This Ordinance is exempt from additional environmental review pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3); under the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 5: Severability. The City Council hereby declares that it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provisions of this Ordinance are severable and if for any reason any sentence, paragraph or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

SECTION 6: Publication and Effective Date. This Ordinance shall be published and posted according to law and shall take effect and be in force from and after 30 days after its passage and adoption.
****
I, City Clerk Crystal Mui, hereby certify that the foregoing Ordinance was introduced on the 24th day of October, 2022 and passed and adopted as an Ordinance of the City of San Carlos at a regular meeting thereof held on the 14th day of November, 2022 by the following vote:

AYES, COUNCILMEMBERS: ___________________________________________________ NOES, COUNCILMEMBERS: __________________________________________________ ABSENT, COUNCILMEMBERS: ________________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:

____________________________
MAYOR of the City of San Carlos

7.i
November 14, 2022

Packet Pg. 179

CITY COUNCIL

STAFF REPORT
MEETING DATE: November 14, 2022
ITEM TITLE: Consideration of the Following Actions for the Life Science/Research & Development Project at 405 Industrial Road (APN 046-051-080):
(1) Adopt a Resolution Adopting the Mitigated Negative Declaration and the Associated Mitigation Monitoring and Reporting Program; (2) Introduce an Ordinance Approving the Project Planned Development Plan and Related Zoning Map Amendment to Rezone the Project Site from Landmark Commercial to Planned
Development; and (3) Introduce an Ordinance Approving a Development Agreement with Menlo BCSP 405 Property LLC.

RECOMMENDATION:

The Planning and Transportation Commission and staff recommend that the City Council:

1. Adopt a Resolution adopting the Mitigated Negative Declaration and the associated Mitigation Monitoring and Reporting Program; and

2. Introduce an Ordinance amending the Zoning Map to change the site from Landmark Commercial Zoning District (LC) to Planned Development Zoning District (PD) and approving the associated Planned Development Plan; and

3. Introduce an Ordinance approving a Development Agreement with Menlo BCSP 405 Property LLC.

FISCAL IMPLICATIONS:

The applicant has paid the appropriate application fees and provided deposit funds to pay for expenses related to the environmental review and other reports and analyses associated with the Life Science/Research & Development Project (“Project”) at 405 Industrial Road. The Project will be required to pay building permit fees and City impact fees. City impact fees total over $7.5 million and include commercial linkage (affordable housing), sewer, traffic, and childcare fees.

The proposed Development Agreement includes community benefits, which are outlined in the analysis section below, and a $4.2 million contribution.

The proposed development will also benefit the City by providing additional property taxes, increased sales tax revenue, and new jobs creation. The estimated increased revenue to the City is $10.6 million over the next 20 years.

BACKGROUND:

Process: The Planning and Transportation Commission, at its September 19, 2022 meeting, conducted a public hearing and adopted Resolution PC2022-09 recommending that the City

8.a
November 14, 2022

Packet Pg. 180

Council adopt the Mitigated Negative Declaration and associated Mitigation Monitoring and Reporting Program. At the same meeting, the Planning and Transportation Commission adopted Resolution PC2022-10 recommending that the City Council: (1) adopt the Ordinance to zone the site as Planned Development (PD) Zoning, (2) approve the associated Planned Development Plan, and (3) adopt the Ordinance approving the Development Agreement. The Planning and Transportation Commission also approved the Design Review, Transportation Demand Management Plan, and Grading and Dirt Haul Certificate subject to the approval of the Planned Development zoning.

The items for consideration by the City Council are the Mitigated Negative Declaration, Planned Development Zoning, Planned Development Plan, and Development Agreement.

Existing Conditions: The 2.41-acre project site is located at the northeast corner of Industrial Road at Holly Street and is currently improved with a mini storage facility surrounded by pavement. The property has limited access with a single drive aisle off Industrial Road. The site is located directly behind In-N-Out Burger which dominates the Industrial Road street frontage.

Palo Alto Medical Facility is located to the north and US Highway 101/Holly Street off-ramp with landscaping is located to the east. A drainage channel and Holly Street are to the south of the site with a vacant commercial lot further south at 501 Industrial Road (proposed for a future hotel).

Across Industrial Road from the site to the west is a gas station, commercial buildings, and a single-family neighborhood.

The site is zoned Landmark Commercial (LC) with Gateway overlay and a General Plan designation of General Commercial/Industrial. The site is located within the East Side Innovation District Plan area.

ANALYSIS:

PROJECT DESCRIPTION
Building: The applicant proposes to demolish the existing mini-storage buildings and construct a new six-story life science/research and development building with two levels of above ground parking and two levels of below grade parking. The building is proposed at 292,612 square feet including the above grade parking levels. The height of the building is proposed at 86’-10” to the roof parapet and 90’-10” to the top of the roof equipment/mechanical screen. For comparison purposes, the PAMF building is 84’ to the top of mechanical screen and the Meridian 25 buildings (825/835 Industrial Road) are 86’-2” to roofline and 100’ to mechanical screen.

The first floor of the building would include a main lobby, flexible space for future tenant amenity use, short-term and long-term bicycle parking, and vehicle parking spaces. The trash room, loading dock, and equipment room is located within the first floor of the building along the eastern side. Additional parking levels are located two levels below grade and one level above grade.

Open lab/office space is planned for floors three through six. The sixth floor includes an outdoor balcony along the western side of the building. The roof is planned with various mechanical equipment, small covered areas with stair and elevator access, and enclosed mechanical space.

The roof equipment and screen is located within the center of the building.

8.a
November 14, 2022

Packet Pg. 181

Site Plan and Landscaping:

The site plan includes a perimeter paved
driveway providing fire access around the new
building. Landscaping is proposed along the
driveway, at the front of the building, and along
the western side of the site adjacent to the In-
N-Out building. Access to the building lobby is
to the north and access to the parking structure
is at the northeast corner of the building. An
equipment yard with generator is located at the
far northeastern corner of the site. Vehicle site
access is provided through a 26’ wide driveway
at Industrial Road and pedestrian access with a
5’ wide sidewalk.

Architecture/Design and Signage: The applicant has designed the building in a manner to attract a life science company seeking a headquarters location. The building is designed as a contemporary office/lab building with large expanses of glass with vertical and horizontal articulation to reduce the overall mass of the building and provide visual interest. Two different glazing materials are utilized in an alternating horizontal manner to also break up the vertical mass of the building. The specific glazing material was selected to reduce glare and minimize bird strikes. The entry lobby includes white columns and painted aluminum metal panel system. Along the Industrial Road elevation, the sixth floor is set back approximately 18’ from the face of the building to reduce the mass and is designed with an outdoor balcony for tenant use. Landscape planters are included along the exterior side of the balcony. Along the rear of the site, adjacent to US Highway 101, the building is designed in a series of step backs that follow the curved shape of the lot. There will be design features added to reduce the amount of light that emanates from the building including, interior light fixtures that direct the light vertically and motorized window shades with timed sensors to lower automatically. These measures are memorialized as conditions of approval. The proposed exterior building materials include brushed aluminum slab covers, spandrel (opaque) bird-safe glass, exterior glazing, and cement plaster.

8.a
November 14, 2022

Packet Pg. 182

The applicant proposes a sign program that includes five building signs and one monument sign totaling up to 350 square feet of signage for the site. The future tenant sign visible from US Highway 101 will require design review by the Planning and Transportation Commission, with the remaining signs requiring staff level review for consistency with the sign program.

Parking Vehicles and Bicycles: San Carlos Municipal Code (Code) requires one parking space for 800 square feet of lab space and one parking space for 300 square feet of office area. As proposed, the required parking is 431 spaces. In accordance with San Carlos Municipal Code Section 18.20.050, the number of parking spaces may be reduced by 20% with a Transportation Demand Management (TDM) plan. With a TDM plan, the required parking is 345 parking spaces.

The applicant proposes four levels of parking (two below grade, one at grade, and one above grade) that would accommodate 474 parking spaces, including motorcycle and tandem parking spaces.

Short term and long term bicycle parking is provided within the first level of the parking structure.

The project includes 40 short term and 44 long term bicycle parking spaces for a total of 84 bicycle spaces. The proposed bicycle parking exceeds the 39 short term and 24 long term spaces (total of 63 required spaces) required by the Code.

Off-site Improvements: The applicant proposes an optional pedestrian/bicycle pathway that would run along the southern side of the site along the drainage channel, connecting the site to the northeast corner of Industrial Road and Holly Street south of the In-N-Out property. The proposed bicycle/pedestrian bridge would require a CalTrans encroachment permit.

The applicant also proposes new landscaping at the northeast corner of Industrial Road and Holly Street consistent with the East Side Innovation District Plan’s goals for a green boulevard along Industrial Road. The landscape improvements would include bench seating and new planting. In addition, the applicant proposes replacement planting of 17 trees along the western side of Industrial Road from Holly Street to Taylor Way. The trees would be installed within the existing planters.

Community Benefits: In addition to the off-site improvements outlined above, the applicant proposes to contribute $4,200,000 in community benefits to the City. These funds are anticipated to be used for a Greater East San Carlos (GESC) neighborhood improvement fund, with the use of the funds to be determined by the City Council with input from the neighborhood. Improvement could include traffic calming measures, park improvements, and additional neighborhood landscaping. The offer of community benefits is included in the Development Agreement.

The applicant will also be required to pay City impact fees. The final fee amount will be determined at Building Permit submittal. However, based on the proposed plans, the fees are estimated as follows:

Commercial Linkage fee (for affordable housing) $4,134,102.00 Sewer fees (connection and capacity) $1,414,752.00
Traffic impact fee $941,646.00
Child Care impact fee $1,033,530.00
Total City impact fees $7,524,030.00

8.a
November 14, 2022

Packet Pg. 183

Other Reviewing Agencies: The City/County Association of Governments of San Mateo County (C/CAG) Airport Land Use Committee reviewed the Project at its August 25, 2022 meeting and determined that the Project is consistent with the Airport Land Use Compatibility Plan for the San Carlos Airport. The applicant also received clearance from the Federal Aviation Administration (FAA). The agencies determined that the proposed development is consistent with the Airport Plan, would not exceed obstruction standards, and would not be a hazard to air navigation. The applicant is required to file additional information with the FAA within five days of the construction reaching its greatest height.

The applicant has also submitted the TDM materials as required by C/CAG. Staff will transmit the information to C/CAG upon project approval for C/CAG tracking.

ENVIRONMENTAL REVIEW
The City has undertaken an environmental review of the Project as required by the California Environmental Quality Act (CEQA). The potential for the project to result in environmental impacts was assessed in an Initial Study addressing all environmental topics under CEQA per section 15063 of the CEQA Guidelines. Technical analyses were prepared to inform the conclusions in the Initial Study.

Based on the analyses, the Initial Study concluded that, with implementation of standard conditions of approval and mitigation measures identified in the Initial Study, the Project would not result in any significant environmental impacts.

Potentially Significant Impacts Requiring Mitigation
The analyses found some impacts that could potentially be significant without mitigation. They are included in full in the Mitigated Negative Declaration (MND) and summarized below with the proposed mitigation measures:

Aesthetics: Light egress and glare generated by the Project’s interior lights could adversely impact surrounding sensitive light receptors during nighttime hours. A mitigation measure requires the installation of interior automatic roller shades and interior light sensors.

Air Quality, Construction Emissions: Construction of the Project would result in short term construction emissions. A mitigation measure requires construction equipment to meet tier IV exhaust emission standards.

Biological Impact: The new building will introduce new glazing facades that could result in bird collisions that injures or kills birds. A mitigation measure requires that the applicant implement bird safe design considerations.

If constructed, the proposed bicycle/pedestrian pathway/bridge requires permits from the agencies to construct over the drainage channel. If the applicant proceeds with the bridge, a mitigation measure requires preparation of a jurisdictional wetland delineation and obtainment of the appropriate permits from other agencies.

8.a
November 14, 2022

Packet Pg. 184

The Project may also require removal of trees within the drainage channel. A mitigation measure requires that the applicant prepare a tree protection plan and if required, a permit for tree removal. Further, if trees are within the jurisdiction of Fish and Game, the applicant shall be required to obtain a permit and comply with replacement requirements.

Cultural Resources Impact: There are no known cultural resources. However, construction of the Project may disturb unknown buried archaeological resources. A mitigation measure requires archaeological sensitivity training prior to the start of construction and prior to ground disturbance. In the event archaeological resources are unearthed during construction, all resources shall be evaluated by a qualified professional archaeologist and an appropriate treatment plan for the resources would be prepared. If human remains are unearthed, the County Coroner shall be consulted and if determined to be of Native American origin, the Native American Heritage Commission shall be consulted for ultimate disposition.

Geological Impact: Project construction could unearth paleontological resources including fossils. If resources are discovered, the contractor shall consult with a qualified paleontologist and follow the required treatment plan.

Transportation Impact: The applicant is required to implement the TDM Plan to ensure no impact relating to vehicle miles traveled (VMT).

With implementation of the mitigation measures, the Project will not result in a significant impact to the environment.

Transportation Impact Analysis: A complete Transportation Impact Analysis (TIA) has been completed to determine if there are any safety issues under CEQA or whether there are any non- CEQA impacts that should be addressed. The study found that there is adequate sight distance and queuing to permit left turn movements into and out of the site.

The analysis concludes that there will not be any new significant impacts as a result of the Project.

Some of the study intersections are operating at levels considered unacceptable and/or are projected to operate at unacceptable levels under cumulative conditions. However, the contribution of the proposed project traffic to these intersections would not be significant per the City’s General Plan standards and C/CAG standards. The applicant will be required to pay the Transportation Impact Fee that will be utilized by the City for traffic improvements.

Circulation and Comment Period: The MND was available for a 30-day public review and comment from August 9, 2022 through September 8, 2022. Notice of the availability of the MND was circulated to State and local agencies and property owners and occupants within 300’ of the site, as required by CEQA Guidelines. Comment letters on the MND were received from CalTrans, Paul Magginetti, and Dimitri Vandellos. CalTrans notes requirements and measures to achieve TDM reductions. Mr. Magginetti expressed concern with hazardous materials onsite, impact to housing with new workers, transportation impacts, and emergency egress. Mr.

Vandellos expressed concerns with traffic and emergency access. The letters and responses are included as an attachment to the MND.

8.a
November 14, 2022

Packet Pg. 185

ANALYSIS & FINDINGS FOR APPROVAL
Consistency with the General Plan: The subject site has General Plan land use designation of General Commercial/Industrial which permits research and development (R&D), biotech, light industrial, flex, warehousing, and related uses. The land use designation offers maximum flexibility to allow the market to determine the mixture of non-residential uses.

The Project is consistent with General Plan policies to encourage new commercial development to expand the City’s tax base and to support the expansion of key growth industrials (Attachment 6).

Planned Development Zoning District and Planned Development Plan The Developer has requested rezoning the subject site from Landmark Commercial (LC) to Planned Development (PD) Zoning District in accordance with SCMC Chapters 18.10, Planned Development District, and 18.36, Planned Development. Rezoning requires the City Council’s approval, and the Planning and Transportation Commission is the recommending body for the action.

The proposed Project complies with all development standards and supplemental regulations of the LC Zoning District, except for height and floor area. The Project complies with setbacks, landscaping, and parking requirements. The applicant is requesting the following Planned Development zoning standard adjustments:

1. Height: Exceed the maximum height of 50’ allowed per the GCI District. The applicant proposes the new building with a height of 86’-10” to the top of the parapet and 90’-10”.

2. Floor Area: Exceed the maximum site floor area ratio of 2.0. The applicant proposes total building square footage, including the above grade parking, at 292,612 square feet resulting in a FAR of 2.79.

3. Landscaping: Reduce onsite landscaped area from the required 15% of lot area (15,757 square feet) to 8% of lot area (8,299 square feet).

4. Sign Area: A total of 350 square feet of signage is requested on the property. The sign program includes one monument sign and a maximum of five tenant wall signs, with no more than two wall signs along a street frontage.

Development Agreement
A Development Agreement is proposed with the project as provided for in State law and Municipal Code Chapter 18.37. The Development Agreement outlines a project description including community benefits and developer (applicant) obligations. The applicant offers community benefits totaling $4.2 million in contributions. It is recommended that the funds be designated to a GESC neighborhood improvement fund with the use of funds to be determined by the City Council, with input from the GESC. To approve a Development Agreement, the City Council is required to find that the Development Agreement is consistent with the General Plan. As outlined

8.a
November 14, 2022

Packet Pg. 186

above, the Project and the contributions of community benefits are consistent with the General Plan, as well as the guiding principles of the East Side Innovation District Vision Plan.

PUBLIC OUTREACH
The applicant conducted public outreach and staff met with representatives of the GESC. They provided the following comments on the proposed development:
•Concern with traffic in close proximity to the intersection at Holly/Industrial and US Highway 101 off-ramp.
•Concern with left turns out of the site due to sight distance with In-N-Out traffic and the possibility of increased accidents.
•Concern with fire safety and emergency evacuation of the site due to limited, one driveway access.
•Request for more consideration of bike and pedestrian safety (possible community benefit). •Concern with the height and size of the proposed development given the small and odd shaped layout of the site. Concern that the development is too large for the site. •Concern with the use of outdoor upper level balcony facing the neighborhood. •Concern with lighting emanating from the building (require automatic window shades and exterior lighting to be downlit).
•Concern with potential hazardous use and storage of hazardous materials on-site (limit future tenants to biohazard safety level 1 and 2 only). •Desire to see a comprehensive traffic study taking into consideration other proposed developments.
•Prefer lighter glass that blends in with the sky.

Response to GESC’s comments: A traffic study was completed to evaluate the safety of access to and from the site and impacts to intersections. The study found that left turns in and out of the site can be accomplished and would not create a safety issue. The study also found that there will be increased traffic at several intersections, however it would not result in an impact. The Fire Marshal has reviewed the plans and finds that with the AMMR, the Project meets the intent of the fire code requirements including emergency egress. As a mitigation measure, the applicant will be required to install automatic shades and interior light sensors to limit light spillage. A limitation has been added to the Planned Development Zoning to only permit future tenants at Bio Safety level 1 and 2 and to prohibit businesses classified as Bio Safety level 3 and 4.

The Planning and Transportation Commission received written public comments from Tim Hilborn and Sam Herzberg expressing concern with the project and Rosario Fernandez expressing support with the project (Attachment 7).

Staff mailed the required public notice to all property owners within 300’ of the site on November 3, 2022, and the notice was published in a newspaper on November 4, 2022.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the Mitigated Negative Declaration and the associated Mitigation Monitoring and Reporting Program; Introduce an Ordinance Amending the Zoning Map to change the site from Landmark Commercial (LC) Zoning District to Planned Development (PD) Zoning District, approve the associated Planned Development Plan;

8.a
November 14, 2022

Packet Pg. 187

and Introduce an Ordinance approving a Development Agreement with Menlo BCSP 405 Property LLC; or

2. Do not adopt the proposed Resolution nor introduce the two proposed Ordinances; or

3. Provide Staff with alternative direction.

Respectfully submitted by:

Al Savay, Community Development Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution – Mitigated Negative Declaration (MND) Exhibit B to Resolution - Mitigation Monitoring and Reporting Program (MMRP)

2. Ordinance Planned Development with Exhibit A
Exhibit B to PD Ordinance – Planned Development Plan
Exhibit C to PD Ordinance – Findings

3. Ordinance Development Agreement with Exhibit A
Exhibit B to Ordinance – Development Agreement

4. Code Compliance Certificate

5. Applicant Letter of Request

6. General Plan Policies

7. Public Comments

8.a
November 14, 2022

Packet Pg. 188

RESOLUTION NO. 2022 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

ADOPTING A MITIGATED NEGATIVE DECLARATION AND ASSOCIATED

MITIGATION MONITORNING AND REPORTING PROGRAM FOR THE
405 INDUSTRIAL ROAD PROJECT.
___________________________________________________________________________ WHEREAS, RMW Architecture Interiors, Inc. on behalf of MENLO BCSP 405 JV LLC proposes to develop a new six-story, 292,612 square feet life science/research and development building ("Project") on an approximately 2.41 acre site at 405 Industrial Road (Assessor's Parcel Number: 046-051-080); and
WHEREAS, the City of San Carlos ("City") determined that the Project requires review pursuant the California Environmental Quality Act ("CEQA"); and WHEREAS, pursuant to CEQA Section 15070, the City as the lead agency under CEQA, hired MIG, ("Consultant") to prepare an Initial Study to determine if the Project may have a significant effect on the environment and concluded that there is no substantial evidence that the Project may cause a significant effect on the environment, and prepared a Mitigated Negative Declaration ("MND"); and
WHEREAS, the prepared MND included an assessment of potential environmental effects and a description of mitigation measures to reduce potentially significant environmental effects to a less than significant level; and
WHEREAS, the City issued a Notice of Intent regarding the MND seeking public comment and agency review and comment for the period of August 9, 2022 through September 8, 2022 on the prepared MND pursuant to CEQA Guidelines Section 15072 and 15073; and WHEREAS, the C/CAG Board of Directors, acting as the Airport Land Use Commission, determined that the Project is consistent with the applicable airport/land use policies and criteria contained in the Airport Land Use Compatibility Plan for the Environs of San Carlos Airport and the Project will not result in a safety hazard; and
WHEREAS, by Resolution PC2022-09, adopted on September 19, 2022, the Planning Commission recommends the City Council adopt the Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Plan pursuant to the California Environmental Quality Act (CEQA) for the implementation of the mitigation measures outlined in the Mitigated Negative Declaration; and

WHEREAS, the City mailed a public hearing notice for the Project on November 4, 2022 to property owners and occupants within a 300-foot radius of the project site, published the public hearing notice on November 3, 2022, and made reference to the fact that an MND was available for public review per Section 15073 of the CEQA Guidelines; and WHEREAS, the City Council conducted a public hearing on November 14, 2022 and reviewed all evidence presented both orally and in writing and considered in light of public

8.a
November 14, 2022

Packet Pg. 189

comments and testimony the information in the MND, for adequacy, completeness and compliance with CEQA and State CEQA Guidelines; and

WHEREAS, CEQA requires that the lead agency approving a project adopt a Mitigation Monitoring and Reporting Program for changes to the Project to ensure compliance during project implementation.

NOW THEREFORE BE IT RESOLVED that the City Council makes the following findings to certify the MND and adopt the Mitigation Monitoring and Reporting Program:

1. The City Council has independently reviewed and analyzed the 405 Industrial Road Project MND and other information in the record and the mitigation measures incorporated into the Project would avoid or substantially lessen all of the significant environmental effects as identified in the MND to a less than significant level; and

2. The Mitigation Monitoring and Reporting Program accurately reflects the mitigation measures contained in the 405 Industrial Road Project MND.

IT IS FURTHER RESOLVED that the City Council hereby:

1. Adopts the Mitigated Negative Declaration (Exhibits A); and

2. Adopts, and imposes as conditions of the Project approval the mitigation measures set forth in, the Mitigation Monitoring and Reporting Program (Exhibit B).

3.Designates the Community Development Director as the custodian of the documents and records of proceedings on which this decision is based. The Community Development Director's office is located at City Hall, 600 Elm Street, San Carlos, California. * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 14th day of November 2022, by the following vote:

AYES, COUNCILMEMBERS:______________________________________________ NOES, COUNCILMEMBERS:______________________________________________ ABSENT, COUNCILMEMBERS:______________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibits:

A.405 Industrial Road Mitigated Negative Declaration
B. 405 Industrial Road Project Mitigation Monitoring and Reporting Program

8.a
November 14, 2022

Packet Pg. 190

,QGXVWULDO5RDG /LIH6FLHQFH 3URMHFW
,QLWLDO6WXG\ 0LWLJDWHG 1HJDWLYH'HFODUDWLRQ
&LW\RI6DQ&DUORV
(OP6WUHHW6DQ&DUORV&$

$XJXVW

8.a
November 14, 2022

Packet Pg. 191

7KLVSDJHLVLQWHQWLRQDOO\EODQN

8.a
November 14, 2022

Packet Pg. 192

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ
3URMHFW
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
3URMHFW3URSRQHQW
-DQH9DXJKDQ0HQOR(TXLWLHV
6DQG+LOO5RDG
0HQOR3DUN&$

/HDG$JHQF\
&LW\RI6DQ&DUORV
$YDLODELOLW\RI'RFXPHQWV
7KH,QLWLDO6WXG\IRUWKLV0LWLJDWHG1HJDWLYH'HFODUDWLRQLVDYDLODEOH IRUUHYLHZDW

&LW\RI6DQ&DUORV
(OP6WUHHW
6DQ&DUORV&$

OFRVWDVDQGHUV#FLW\RIVDQFDUORVRUJ
&RQWDFW±/LVD&RVWD6DQGHUV3ULQFLSDO3ODQQHU

352-(&7
'(6&5,37,21
7KH&LW\RI6DQ&DUORVKDVUHFHLYHGDQDSSOLFDWLRQIRUWKH,QGXVWULDO5RDG/LIH6FLHQFH 3URMHFW

SURMHFW
ZKLFKZRXOGFRQVLVWRIWKHFRQVWUXFWLRQDQGRSHUDWLRQRIDQHZVL[VWRU\ FRPPHUFLDODQGOLIHVFLHQFHEXLOGLQJZLWKWZROHYHOVRIEHORZJUDGHSDUNLQJRQDVLWHWKDWLV FXUUHQWO\GHYHORSHGZLWKDQDSSUR[LPDWHO\VTXDUHIRRWVHOIVWRUDJHIDFLOLW\LQWKH&LW\RI 6DQ&DUORV7KHSURMHFWDOVRSURSRVHVWRFRQVWUXFWDSHGHVWULDQSDWKZD\ZLWKLQ&DOWUDQVULJKW RIZD\IURPWKHVRXWKZHVWHUQSRUWLRQRIWKHSURMHFWVLWHWRWKH,QGXVWULDO5RDG+ROO\6WUHHW LQWHUVHFWLRQ
7KHSURMHFWVLWHLVORFDWHGDW,QGXVWULDO5RDGLQWKHQRUWKHUQSRUWLRQRIWKH&LW\RI6DQ &DUORVRQDVLQJOHSDUFHO
$VVHVVRU3DUFHO1XPEHU
7KHSURMHFWVLWHLVORFDWHG
LQWKHQRUWKHUQSRUWLRQRIWKH&LW\¶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

*&,
DQG/&
/DQGPDUN&RPPHUFLDO
UHVSHFWLYHO\7KHVH*HQHUDO3ODQDQG]RQLQJ
GHVLJQDWLRQVJHQHUDOO\LQFOXGHUHWDLOVHUYLFHRIILFH5 'DQGLQGXVWULDOXVHV7KHSURMHFWZRXOG UHTXLUHDUH]RQLQJWR3'
3ODQQHG'HYHORSPHQW
WRH[FOXGHDERYHJUDGHSDUNLQJIURPWKH)ORRU
$UHD5DWLR
)$5
FDOFXODWLRQDQGWRDOORZFRQVWUXFWLRQRIDEXLOGLQJZKLFKZRXOGH[FHHGWKH /DQGPDUN&RPPHUFLDOIRRW]RQLQJKHLJKWOLPLW
&RQVWUXFWLRQRIWKHSURMHFWZRXOGFRPPHQFHLQHDUO\WRPLGDQGODVWDSSUR[LPDWHO\ PRQWKVEHFRPLQJRSHUDWLRQDOLQODWH&RQVWUXFWLRQZRXOGUHTXLUHWKHGHPROLWLRQDQGRII

8.a
November 14, 2022

Packet Pg. 193

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
KDXORIWKHH[LVWLQJVTXDUHIHHWRIEXLOGLQJVSDFHDWWKHVLWHDVZHOODVDSSUR[LPDWHO\
FXELF\DUGVRIVRLOWRDFFRPPRGDWHWKHVXEWHUUDQHDQSDUNLQJJDUDJH 2QFHRSHUDWLRQDOWKHSURSRVHGVL[VWRU\EXLOGLQJZRXOGWRWDODSSUR[LPDWHO\VTXDUHIHHW RIEXLOGLQJVSDFH
IRXUOHYHOVRIRIILFHODERUDWRU\VSDFHVLWXDWHGRYHUWZROHYHOVRIDERYHJUDGH SDUNLQJDQGWZROHYHOVRIEHORZJUDGHSDUNLQJ

VTXDUHIHHWRIWKDWVSDFHZRXOGEH
XVHGIRUODERUDWRU\DQGRIILFHSXUSRVHVDQGWKHUHPDLQLQJDSSUR[LPDWHO\VTXDUHIHHW ZRXOGEHXVHGIRUJDUDJHDUHD2IWKHDSSUR[LPDWHO\VTXDUHIHHWRIODERUDWRU\DQG RIILFHVSDFH

VTXDUHIHHW
ZRXOGEHXVHGDVRIILFHVSDFHDQG

VTXDUHIHHW
ZRXOGEHXVHGDVODERUDWRU\VSDFH7KHVLWH¶VSURSRVHG)$5ZRXOGEH LI
SDUNLQJVSDFHLVH[FOXGHGIURPWKHFDOFXODWLRQDQGLISDUNLQJVSDFHLVLQFOXGHG7KHVLWH ZRXOGSURYLGHSDUNLQJIRUDSSUR[LPDWHO\PRWRUYHKLFOHVDQGELF\FOHV9HKLFXODUDFFHVV WRWKHVLWHZRXOGFRQWLQXHWREHSURYLGHGE\DGULYHZD\WKDWUXQVDORQJWKHQRUWKHUQSRUWLRQRI WKHSURMHFWVLWHDQGFRQQHFWVWR,QGXVWULDO5RDG
7KHDUFKLWHFWXUHGHVLJQRIWKHEXLOGLQJZRXOGLQYROYHDSULPDULO\JODVV\FXUWDLQZDOOGHVLJQRQ WKHWRSIORRUIORRUVVLWXDWHGRYHUWZROHYHOVRISDUNLQJVWUXFWXUH7KHIRXUWRSIORRUVRIWKH VRXWKHDVWHUQFRUQHURIWKHEXLOGLQJZRXOGLQFOXGHDIULWWHGJODVVSDWWHUQZKLFKZRXOGVHUYHDV DQDUWLVWLFHOHPHQWRIWKHEXLOGLQJ,PSOHPHQWDWLRQRIWKHSURSRVHGSURMHFWZRXOGLQFUHDVHWKH DPRXQWRISHUYLRXVDUHDRQWKHVLWHE\DSSUR[LPDWHO\ VTXDUHIHHW
352326('),1',1*6
7KH&LW\RI6DQ&DUORVKDVUHYLHZHGWKHDWWDFKHG,QLWLDO6WXG\DQGGHWHUPLQHGWKDWWKH,QLWLDO 6WXG\LGHQWLILHVSRWHQWLDOO\VLJQLILFDQWSURMHFWHIIHFWVEXW
5HYLVLRQVWRWKHSURMHFWSODQVLQFRUSRUDWHGKHUHLQDVPLWLJDWLRQZRXOGDYRLGRUPLWLJDWH WKHHIIHFWVWRDSRLQWZKHUHQRVLJQLILFDQWHIIHFWVZRXOGRFFXU DQG
7KHUHLVQRVXEVWDQWLDOHYLGHQFHLQOLJKWRIWKHZKROHUHFRUGEHIRUHWKHDJHQF\WKDWWKH SURMHFWPD\KDYHDVLJQLILFDQWHIIHFWRQWKHHQYLURQPHQW3XUVXDQWWR&DOLIRUQLD (QYLURQPHQWDO4XDOLW\$FW
&(4$
*XLGHOLQHV6HFWLRQV
I

DQG
E
D
0LWLJDWHG1HJDWLYH'HFODUDWLRQKDVEHHQSUHSDUHGIRUFRQVLGHUDWLRQDVWKHDSSURSULDWH &(4$GRFXPHQWIRUWKHSURMHFW
%$6,62)),1',1*6
%DVHGRQWKHHQYLURQPHQWDOHYDOXDWLRQSUHVHQWHGLQWKHDWWDFKHG,QLWLDO6WXG\WKHSURMHFWZRXOG QRWFDXVHVLJQLILFDQWDGYHUVHHIIHFWVUHODWHGWR
DJULFXOWXUDODQGIRUHVWU\UHVRXUFHVHQHUJ\
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

8.a
November 14, 2022

Packet Pg. 194

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
QXPEHURUUHVWULFWWKHUDQJHRIDUDUHRUHQGDQJHUHGSODQWRUDQLPDO1RUZRXOGWKHSURMHFW FDXVHVXEVWDQWLDODGYHUVHHIIHFWVRQKXPDQVHLWKHUGLUHFWO\RULQGLUHFWO\
,PSDFW$(6
/LJKWHJUHVVDQGJODUHJHQHUDWHGE\SURMHFWLQWHULRUHOHFWULFOLJKWVFRXOG DGYHUVHO\LPSDFWVXUURXQGLQJVHQVLWLYHOLJKWUHFHSWRUVGXULQJQLJKWWLPHKRXUV 0LWLJDWLRQ0HDVXUH$(6
,QVWDOO,QWHULRU$XWRPDWHG5ROOHU6KDGHV7KHSURMHFWVKDOO LPSOHPHQWWKHDXWRPDWHGVKDGHUHFRPPHQGDWLRQVIRUEUDQGIDEULFW\SHDQGFRORURSHQQHVV DQGDXWRPDWLRQFRQWDLQHGZLWKLQWKHSURMHFW*ODUH6WXG\ /2,6268%%(/2+'(
7KH
LQWHULRUUROOHUVKDGHVVKDOOEHVRXUFHGIURP(FRYHLORU6R+RDQGPHHWWKHVSHFLILFDWLRQVGHWDLOHG LQWKH*ODUH6WXG\,I(FR9HLOVKDGHVDUHVHOHFWHGWKHSURMHFW$SSOLFDQWVKDOOVHOHFWWKH UHFRPPHQGHGVFUHHQVHULHVLQWKHFRORUVLOYHUELUFKZKLFKSURYLGHVWKHEHVWEDODQFHRIWKH SHUIRUPDQFHFULWHULDIRUWKHSURMHFW,I6R+RVKDGHVDUHVHOHFWHGWKHSURMHFW$SSOLFDQWVKDOO VHOHFWIURPWKHZHDYHDQGFRORURSWLRQVUHFRPPHQGHGZLWKLQWKH*ODUH6WXG\ LHVLOYHUVDQG
OLJKWJUH\GRYHJUH\RUVLOYHUELUFK

7KHLQWHULRUUROOHUVKDGHVVKDOOEHRULHQWHGLQWKHSURMHFWEXLOGLQJDVIROORZVDFFRUGLQJWRWKH ³,QWHULRU5ROOHU6KDGH5HFRPPHQGDWLRQ
2SHQQHVVE\2ULHQWDWLRQ´ILJXUHLQFOXGHGRQSDJH
RIWKHSURMHFW*ODUH6WXG\

x 2QH

SHUFHQWRSHQQHVVRQWKH ZHVWHUQIDoDGHRQVWRULHVDQG x 7KUHH

SHUFHQWRSHQQHVVZLWK VHDWVSHUSHQGLFXODUWRIDoDGHRQH
SHUFHQW
RSHQQHVVZLWKIDFHVRUEDFNWRIDoDGHRQWKHHDVWHUQDQGVRXWKHUQIDFDGHVRQVWRULHV DQG
x 7KUHH

SHUFHQWRSHQQHVVRQWKHQRUWKHUQIDoDGHRQVWRULHV DQG
7KHSURMHFWVKDOOLQVWDOOUROOHUVKDGHVZLWKDXWRPDWHGIXQFWLRQDOLW\WKDWLVUHVSRQVLYHWRVN\ FRQGLWLRQVDQGVRODUSRVLWLRQVWRPD[LPL]HGD\OLJKWKDUYHVWLQJPDLQWDLQYLHZVDQGOLPLWHOHFWULF OLJKWHPDQDWLQJIURPWKHEXLOGLQJDWQLJKW
7KHSURMHFWVKDOOLQVWDOORFFXSDQF\VHQVRUVIRUWKHEXLOGLQJ¶VLQWHULRUHOHFWULFOLJKWVWRPLQLPL]H HOHFWULFOLJKWWUHVSDVVGXULQJQLJKWWLPHKRXUV
7KHSURMHFW$SSOLFDQWPD\FKRRVHWRSUHSDUHDQGVXEPLWDUHYLVHG*ODUH6WXG\WRWKH&LW\IRU &LW\DSSURYDOWKDWVSHFLILHVDOWHUQDWLYHDXWRPDWHGVKDGHUHFRPPHQGDWLRQVIRUEUDQGIDEULFW\SH DQGFRORURSHQQHVVDQGDXWRPDWLRQDVORQJDVWKHUHYLVHGVSHFLILFDWLRQVPHHWDUHVXOWLQJOLJKW HJUHVVOXPLQDQFHOHYHORIQRPRUHWKDQFDQGHODVSHUPHWHUVTXDUHGWKHSHUIRUPDQFH VWDQGDUGVSHFLILHGLQWKH*ODUH6WXG\SUHSDUHGE\/2,6268%%(/2+'(7KHUHYLVHG*ODUH 6WXG\VKDOOEHSUHSDUHGE\DTXDOLILHG(QJLQHHULQJRU$UFKLWHFWXUHILUPZLWKVSHFLDOW\DQG H[SHUWLVHLQSUHSDULQJ*ODUH6WXGLHV
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGHIIHFWLYHO\UHGXFHRUHOLPLQDWHOLJKWHJUHVVDQG JODUHIURPLQWHULRUHOHFWULFOLJKWVDQGUHGXFHSRWHQWLDOQLJKWWLPHOLJKW DQGJODUHLPSDFWVWROHVVWKDQVLJQLILFDQW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOEHUHVSRQVLEOHIRULQVWDOOLQJUROOHUVKDGHVWKDW PHHWWKHUHTXLUHPHQWVVSHFLILHGLQWKLVPLWLJDWLRQPHDVXUH 7LPLQJ
7KH&LW\VKDOOHQVXUHWKHVHVSHFLILFDWLRQVDUHGHWDLOHGRQSURMHFW SODQV7KH&LW\VKDOODOVRUHYLHZSXUFKDVHRUGHUVIRUWKHVKDGHVWR HQVXUHWKH\PHHWWKHVSHFLILFDWLRQVUHTXLUHGE\WKLVPLWLJDWLRQ PHDVXUH
0RQLWRULQJ
7KH&LW\VKDOOFRQILUPWKHLQWHULRUVKDGHVSHFLILFDWLRQVWKURXJK SXUFKDVHRUGHU

8.a
November 14, 2022

Packet Pg. 195

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW

,PSDFW$,5
&RQVWUXFWLRQHTXLSPHQWFRXOGJHQHUDWHGLHVHOSDUWLFXODWHPDWWHU '30
HPLVVLRQV
LQH[FHVVRIUHJXODWRU\VWDQGDUGV
0LWLJDWLRQ 0HDVXUH $,5
8WLOL]H 7LHU ,9 2IIURDG &RQVWUXFWLRQ (TXLSPHQW7RUHGXFH SRWHQWLDOVKRUWWHUPDGYHUVHKHDOWKULVNVDVVRFLDWHGZLWK30HPLVVLRQVLQFOXGLQJHPLVVLRQVRI GLHVHOSDUWLFXODWHPDWWHU
'30
JHQHUDWHGGXULQJSURMHFWFRQVWU XFWLRQDFWLYLWLHVWKH&LW\VKDOO UHTXLUHWKHSURMHFW$SSOLFDQWDQGRULWVGHVLJQDWHGFRQWUDFWRUV FRQWUDFWRU¶VUHSUHVHQWDWLYHVRU RWKHUDSSURSULDWHSHUVRQQHOWRFRPSO\ZLWKWKHIROORZLQJFRQVWUXFWLRQHTXLSPHQWUHVWULFWLRQV
x $OOPRELOHFRQVWUXFWLRQHTXLSPHQWJUHDWHUWKDQKRUVHSRZHUL QVL]HVKDOOPHHWZLWK 8QLWHG6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\
86(3$
DQG&DOLIRUQLD$LU5HVRXUFHV
%RDUG
&$5%
7LHU,9([KDXVW(PLVVLRQ6WDQGDUGV7KLVPD\EHDFKLHYHGYLDWKHXVHRI HTXLSPHQWZLWKHQJLQHVWKDWKDYHEHHQFHUWLILHGWRPHHW86(3 $DQG&$5%7LHU,9 HPLVVLRQVVWDQGDUGVRUWKURXJK WKHXVHRIHTXLSPHQWWKDWKDVE HHQUHWURILWWHGZLWKD &$5%YHULILHGGLHVHOHPLVVLRQFRQWUROVWUDWHJ\
HJSDUWLFXODWHILOWHU
FDSDEOHRIUHGXFLQJ
H[KDXVW30HPLVVLRQVWROHYHOVWKDWPHHW86(3$DQG&$5%7LHU,9HPLVVL RQV VWDQGDUGV
$VDQDOWHUQDWLYHWRKDYLQJDOO PRELOHFRQVWUXFWLRQHTXLSPHQWJUHDWHUWKDQKRUVHSRZHUPHHW ZLWK86(3$DQG&$5%7LHU,9([KDXVW(PLVVLRQ6WDQGDUGVWKH $SSOLFDQWPD\SUHSDUHDQG VXEPLWDUHILQHGFRQVWUXFWLRQKHDOWKULVNDVVHVVPHQWWRWKH&LW \RQFHDGGLWLRQDOSURMHFWVSHFLILF FRQVWUXFWLRQLQIRUPDWLRQLVNQRZQ
HJVSHFLILFFRQVWUXFWLRQ HTXLSPHQWW\SHTXDQWLW\HQJLQH WLHUDQGUXQWLPHE\SKDVH
7KHUHILQHGKHDOWKULVNDVVHVVPHQW VKDOOGHPRQVWUDWHDQGLGHQWLI\ DQ\PHDVXUHVQHFHVVDU\VXFKWKDWWKHSURSRVHGSURMHFW¶VLQFUHPHQWDOFDUFLQRJHQLFKHDOWKULVNDW QHDUE\VHQVLWLYHUHFHSWRUORFDWLRQVLVEHORZWKHDSSOLFDEOH%$$ 40'WKUHVKROGRIFDQFHUVLQ DPLOOLRQ
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGUHGXFHSRWHQWLDOFDUFLQRJHQLFKHDOWKULVNVE \ DSSUR[LPDWHO\SHUFHQWDQGW ROHYHOVWKDWDUHEHORZDSSOLF DEOH %$$40'ULVNWKUHVKROGV
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKLV UHTXLUHPHQWRQDOODSSURSULDWH ELG FRQWUDFWDQGHQJLQHHULQJDQGVLWH SODQ
HJEXLOGLQJJUDGLQ JDQG
LPSURYHPHQWSODQV
GRFXPHQWV
7LPLQJ
'XULQJFRQVWUXFWLRQDFWLYLWLHV
0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJDQG VLWHSODQGRFXPHQWVIRULQFOXVLRQRIWKLVUHTXLUHPHQWDQGYHULI\WKHFRQVWUXFWLRQ HTXLSPHQWXWLOL]HGGXULQJFRQVWUXFWLRQPHHWWKH7LHU,9HPLVVLRQVWDQGDUGV
,PSDFW%,2
7KHQHZVL[VWRU\EXLOGLQJZLOOLQWURGXFHQHZJODVVIDFDGHVWKDWFRXOGUHVXOWLQ ELUGFROOLVLRQVWKDWLQMXUHVRUNLOOVELUGV7KLVPD\UHVXOWLQDFXPXODWLYHORVVRIELUGVRYHUWLPH DQGLQDGGLWLRQWRRWKHUVLPLODUEXLOGLQJVSODQQHGLQ6DQ&DUORVWKDWLVDSRWHQWLDOO\VLJQLILFDQW LPSDFWXQGHU&(4$
0LWLJDWLRQ0HDVXUH%,2
%LUGVDIH'HVLJQ7KHSURMHFWVKDOOLPSOHPHQWWKHIROORZLQJELUG VDIHGHVLJQFRQVLGHUDWLRQV

x 8VHJOD]LQJRUZLQGRZFRDWLQJV PDUNLQJVWKDWUHGXFHELUGVWULNHKD]DUGFDXVHGE\ WUDQVSDUHQF\UHIOHFWDQFHEODFNKROHRUSDVVDJHHIIHFWHWFVXFKDV*XDUGLDQ%LUGVW HWFKJODVVRUVLPLODU6HHUHFRPPHQGDWLRQVE\WKH$PHULFDQ%LUG&RQVHUYDWRU\DW KWWSV
DEFELUGVRUJ
x 0LQLPL]HSODQWVRUODQGVFDSHGDU HDVEHKLQGJODVVRURQWKHURRIWRS

8.a
November 14, 2022

Packet Pg. 196

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
x 0LQLPL]HFRQFHQWUDWLRQVRISODQWL QJVDGMDFHQWWRJODVVIDFDGHV (IIHFWLYHQHVV
:LOOPLQLPL]HELUGFROOLVLRQVDQGDYRLGDVLJQLILFDQWFXPXODWLYHLPSDFW ,PSOHPHQWDWLRQ
%\WKH$SSOLFDQWRULWVFRQWUDFWRU
7LPLQJ
'XULQJWKHGHVLJQSKDVH
0RQLWRULQJ
7KH&LW\VKDOOYHULI\GXULQJSODQFKHFNWKDWWKHSURMHFWKDV LQFRUSRUDWHGDGGLWLRQDOELUGFROOLVLRQDYRLGDQFHPHDVXUHVWRPLQLPL]H ELUGGHDWKVFDXVHGE\FROOLVLRQZLWKEXLOGLQJZLQGRZV
,PSDFW%,27KHSURSRVHGSDWKZD\LPSDFWVWKHFKDQQHODQGUHTXLUHVSHUPLWVIURP&DOLIRUQLD 'HSDUWPHQWRI)LVKDQG:LOGOLIH
&'):
5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG
5:4&%
DQG
86$UP\&RUSVRI(QJLQHHUV
86$&(
7KHSURMHFWPD\DOVRLPSDFWWKHDGMDFHQWVWRUP
FKDQQHODQGPL[HGULSDULDQYHJHWDWLRQDORQJWKHGUDLQDJHGXHWRVORSHVWDELOLW\LVVXHV7KH SURMHFWZLOOQHHGWRFRPSO\ZLWKWKHIHGHUDO&OHDQ:DWHU$FWVWDWH3RUWHU&RORJQH:DWHU4XDOLW\ $FWDQG)LVKDQG*DPH&RGH
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
(IIHFWLYHQHVV
:LOOUHGXFHSURMHFWLPSDFWVWRWKHULSDULDQ]RQHDQGGUDLQDJHFKDQQHO ,PSOHPHQWDWLRQ
%\WKH$SSOLFDQWRULWVFRQWUDFWRU
7LPLQJ
3ULRUWREULGJHSDWKZD\FRQVWUXFWLRQDQGVLWHJUDGLQJ 0RQLWRULQJ
7KH&LW\VKDOOYHULI\WKDWWKH$SSOLFDQWKDVREWDLQHGWKHQHFHVVDU\ DSSURYDOVIRUWKHSDWKZD\EULGJHIURP&DOWUDQVDQGVWDWHDQGIHGHUDO UHVRXUFHDJHQFLHVDVDSSURSULDWH

,PSDFW%,27KHSURMHFWPD\UHTXLUHWKHUHPRYDORIWUHHVWKDWDUHVXEMHFWWRWKH&LW\¶V,QWHULP 3URWHFWHG7UHH2UGLQDQFH7KHSURMHFWPD\DOVRUHVXOWLQGDPDJHWRWUHHVDORQJWKHGUDLQDJH ZLWKLQWKH&DOWUDQVULJKWRIZD\
0LWLJDWLRQ%,23URWHFWLRQRI7UHHV7KHSURMHFWSURSRQHQWVKDOOREWDLQDSHUPLWWRUHPRYH DQ\WUHH
V
SURWHFWHGXQGHUWKH&LW\¶V,QWHULP3URWHFWHG7UHH2UGLQDQFHDVGHWHUPLQHGE\DQ DUERULVWDQGVKDOODOVRSUHSDUHDWUHHSURWHFWLRQSODQWKDWLQFOXGHVDPDSRIWKHWUHHSURWHFWLRQ ]RQHDQGLVLQFOXGHGLQWKHFRQVWUXFWLRQGUDZLQJVDQGELGSDFNDJH5HPRYHGWUHHVZLOOEH UHSODFHGLQDFFRUGDQFHZLWKWKHRUGLQDQFHDWWKHGLVFUHWLRQRI WKH&RPPXQLW\'HYHORSPHQW
'LUHFWRU,IDQ\UHPRYHGWUHHVDUHZLWKLQWKHMXULVGLFWLRQRI&DOLIRUQLD'HSDUWPHQWRI)LVKDQG :LOGOLIH
&'):
DQG&'):LVVXHVD/DNHDQG6WUHDPEHG$JUHHPHQWIRUWKHSURMHFWWKHWUHH UHSODFHPHQWUDWLRVVKDOOFRPSO\ZLWK&'):UHTXLUHPHQWV

8.a
November 14, 2022

Packet Pg. 197

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
(IIHFWLYHQHVV :LOODVVXUHWKDWWUHHFDQRS\LVPDLQWDLQHGLQWKH&LW\RI6DQ&DUORVDV LQWHQGHGE\WKH,QWHULP7UHH3URWHFWLRQ2UGLQDQFHDQGWKDWWUHHVWR UHPDLQDUHSURWHFWHGGXULQJFRQVWUXFWLRQ
,PSOHPHQWDWLRQ%\WKH$SSOLFDQWRULWVFRQWUDFWRU
7LPLQJ 3ULRUWRWUHHWULPPLQJRUUHPRYDO
0RQLWRULQJ &HUWLILHG$UERULVW5HSRUWWUHH SURWHFWLRQSODQUHYLHZE\WKH &RPPXQLW\'HYHORSPHQW'LUHFWRU

,PSDFW&8/
3URMHFWFRQVWUXFWLRQSHUVRQQHOPD\QRWUHFRJQL]HEXULHGDUFKDHRORJLFDO UHVRXUFHVGXULQJSURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0LWLJDWLRQ0HDVXUH&8/
&RQGXFW$UFKDHRORJLFDO6HQVLWLYLW\7UDLQLQJ,QDQWLFLSDWLRQRI GLVFRYHU\RIXQNQRZQDUFKDHRORJLFDOUHVRXUFHVGXULQJFRQVWUXFWLRQ$UFKDHRORJLFDO6HQVLWLYLW\ 7UDLQLQJVKDOOEHFDUULHGRXWE\DTXDOLILHGDUFKDHRORJLVWIRUDOOSHUVRQQHOZKRZLOOHQJDJHLQ JURXQGGLVWXUELQJDFWLYLWLHVRQWKHVLWH7KHWUDLQLQJVKDOOEHFRQGXFWHGDWWKHVWDUWRI FRQVWUXFWLRQDQGSULRUWRJURXQGGLVWXUEDQFH
7KHWUDLQLQJVKDOOLQFOXGHVXLWDEOHSKRWRJUDSKLFPDWHULDOVVKRZLQJWKHNLQGVRIDUWLIDFWVDQG HYLGHQFHRISUHKLVWRULFDUFKDHRORJLFDOVLWHVOLNHO\WREHIRXQGLQWKHDUHDDVZHOODVZULWWHQDQG YHUEDOGHVFULSWLRQVIRUDUFKDHRORJLFDOUHVRXUFHVDQGVLJQVRISRWHQWLDODUFKDHRORJLFDOGLVFRYHU\ 7KHWUDLQLQJZLOODOVRLQFOXGHZULWWHQPDWHULDOVGHVFULELQJZKDWWRGRLQWKHHYHQWRIDGLVFRYHU\ RUVXVSHFWHGGLVFRYHU\RIDUFKDHRORJLFDOUHVRXUFH7KLVODQJXDJHZLOOLQFOXGH0LWLJDWLRQ 0HDVXUHV&8/DQG&8/
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGPLQLPL]HDQGRUDYRLGLPSDFWVWRXQDQWLFLSDWHG DUFKDHRORJLFDOUHVRXUFHVWROHVVWKDQVLJQLILFDQWOHYHOV ,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHSULRUWRJURXQGGLVWXUEDQFHRQWKHVLWH 7LPLQJ
3ULRUWRSURMHFWJURXQGGLVWXUEDQFH
0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRIFXOWXUDOUHVRXUFHPLWLJDWLRQ 7KH&LW\VKDOOHQVXUHWKDWDUFKDHRORJLFDOWUDLQLQJKDVEHHQFRQGXFWHG IRUDOOSHUVRQQHOHQJDJHGLQJURXQGPRYLQJDFWLYLWLHVSULRUWRJURXQG GLVWXUEDQFHRQWKHVLWH

,PSDFW&8/
3URMHFWFRQVWUXFWLRQPD\XQHDUWKRUGLVWXUESUHYLRXVO\XQLGHQWLILHGEXULHG DUFKDHRORJLFDOUHVRXUFHVGXULQJSURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0LWLJDWLRQ0HDVXUH&8/
3URWHFWLRQRI$UFKDHRORJLFDO5HVRXUFHV,QWKHHYHQW
DUFKDHRORJLFDOUHVRXUFHVDUHXQHDUWKHGGXULQJJURXQGGLVWXUELQJDFWLYLWLHVDOOJURXQGGLVWXUELQJ DFWLYLWLHVZLWKLQIHHWRIWKHILQGVKDOOEHKDOWHGVRWKDWWKHILQGFDQEHHYDOXDWHG*URXQG PRYLQJDFWLYLWLHVVKDOOQRWEHDOORZHGWRFRQWLQXHXQWLODTXDOLILHGDUFKDHRORJLVWKDVH[DPLQHG WKHQHZO\GLVFRYHUHGDUWLIDFW
V
DQGKDVHYDOXDWHGWKHDUHDRI
WKHILQG
$OODUFKDHRORJLFDOUHVRXUFHVXQHDUWKHGE\SURMHFWFRQVWUXFWLRQDFWLYLWLHVVKDOOEHHYDOXDWHGE\D TXDOLILHGSURIHVVLRQDODUFKDHRORJLVWZKRPHHWVWKH866HFUHWDU\RIWKH,QWHULRU¶V3URIHVVLRQDO 4XDOLILFDWLRQVDQG6WDQGDUGV

8.a
November 14, 2022

Packet Pg. 198

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$OO1DWLYH$PHULFDQDUWLIDFWV
WULEDOILQGV
VKDOOEHFRQVLGHUHGDVDVLJQLILFDQW7ULEDO&XOWXUDO
5HVRXUFHSXUVXDQWWR35&XQWLOWKHOHDGDJHQF\KDVHQRXJKHYLGHQFHWRPDNHD GHWHUPLQDWLRQRIVLJQLILFDQFH
7KH&LW\VKDOOFRRUGLQDWHZLWKWKHDUFKDHRORJLVWWRGHYHORSDQDSSURSULDWHWUHDWPHQWSODQIRUWKH UHVRXUFHV7KHSODQPD\LQFOXGHLPSOHPHQWDWLRQRIDUFKDHRORJLFDOGDWDUHFRYHU\H[FDYDWLRQVWR DGGUHVVWUHDWPHQWRIWKHUHVRXUFHDORQJZLWKVXEVHTXHQWODERUDWRU\SURFHVVLQJDQGDQDO\VLV,I DSSURSULDWHWKHDUFKDHRORJLVWPD\LQWURGXFHDUFKDHRORJLFDOPRQLWRULQJRQDOORUSDUWRIWKHVLWH $QDUFKDHRORJLFDOUHSRUWZLOOEHZULWWHQGHWDLOLQJDOODUFKDHRORJLFDOILQGVDQGVXEPLWWHGWRWKH &LW\DQGWKH1RUWKZHVW,QIRUPDWLRQ&HQWHU
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGPLQLPL]HDQGRUDYRLGLPSDFWVRQXQGHWHFWHG DUFKDHRORJLFDOUHVRXUFHVWROHVVWKDQVLJQLILFDQWOHYHOV ,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHLQWKHHYHQWFXOWXUDOUHVRXUFHVDUH GLVFRYHUHG
7LPLQJ
'XULQJDOOHDUWKPRYLQJSKDVHVRISURMHFWFRQVWUXFWLRQ 0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRIFXOWXUDOUHVRXUFHPLWLJDWLRQ $QDUFKDHRORJLFDOUHSRUWLIDSSURSULDWHZLOOEHZULWWHQGHWDLOLQJDOO DUFKDHRORJLFDOILQGVDQGVXEPLWWHGWRWKH&LW\DQGWKH1RUWKZHVW ,QIRUPDWLRQ&HQWHU

,PSDFW&8/
3URMHFWFRQVWUXFWLRQSDUWLFXODUO\H[FDYDWLRQRIWKHXQGHUJURXQGSDUNLQJJDUDJH PD\GLVWXUEKXPDQUHPDLQVGXULQJSURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0LWLJDWLRQ0HDVXUH&8/
3URWHFWLRQRI+XPDQ5HPDLQV,IKXPDQUHPDLQVDUHXQHDUWKHG GXULQJJURXQGGLVWXUELQJDFWLYLWLHV6HFWLRQ
E
RIWKH&DOLIRUQLD+HDOWKDQG6DIHW\FRGH
ZLOOEHLPSOHPHQWHG6HFWLRQ
E
VWDWHV

,QWKHHYHQWRIGLVFRYHU\RUUHFRJQLWLRQRIDQ\KXPDQUHPDLQVLQDQ\ORFDWLRQRWKHUWKDQ DGHGLFDWHGFHPHWHU\WKHUHVKDOOEHQRIXUWKHUH[FDYDWLRQRUGLVWXUEDQFHRIWKHVLWHRU DQ\QHDUE\DUHDUHDVRQDEO\VXVSHFWHGWRRYHUOLHDGMDFHQWUHPDLQVXQWLOWKHFRURQHURI WKHFRXQW\LQZKLFKWKHKXPDQUHPDLQVDUHGLVFRYHUHGKDVGHWHUPLQHGLQDFFRUGDQFH ZLWK&KDSWHU
FRPPHQFLQJZLWK6HFWLRQ
RI3DUWRI'LYLVLRQRI7LWOHRIWKH
*RYHUQPHQW&RGHWKDWWKHUHPDLQVDUHQRWVXEMHFWWRWKHSURYLVLRQVRI6HFWLRQ RI
WKH*RYHUQPHQW&RGHRUDQ\RWKHUUHODWHGSURYLVLRQVRIODZFRQFHUQLQJLQYHVWLJDWLRQRI WKHFLUFXPVWDQFHVPDQQHUDQGFDXVHRIGHDWKDQGWKHUHFRPPHQGDWLRQVFRQFHUQLQJ WUHDWPHQWDQGGLVSRVLWLRQRIWKHKXPDQUHPDLQVKDYHEHHQPDGHWRWKHSHUVRQ UHVSRQVLEOHIRUWKHH[FDYDWLRQRUWRKLVRUKHUDXWKRUL]HGUHSUHVHQWDWLYHLQWKHPDQQHU SURYLGHGLQ6HFWLRQ

RIWKH3XEOLF5HVRXUFHV&RGH
7KH&RXQW\&RURQHUXSRQUHFRJQL]LQJWKHUHPDLQVDVEHLQJRI1DWLYH$PHULFDQRULJLQLV UHVSRQVLEOHWRFRQWDFWWKH1DWLYH$PHULFDQ+HULWDJH&RPPLVVLRQ

1$+&
ZLWKLQKRXUV7KH
&RPPLVVLRQKDVYDULRXVSRZHUVDQGGXWLHVLQFOXGLQJWKHDSSRLQWPHQWRID0RVW/LNHO\ 'HVFHQGDQW
0/'
WRWKH3URMHFW7KH0/'RULQOLHXRIWKH0/'WKH1$+&KDVWKH UHVSRQVLELOLW\WRSURYLGHJXLGDQFHDVWRWKHXOWLPDWHGLVSRVLWLRQRIDQ\1DWLYH$PHULFDQUHPDLQV (IIHFWLYHQHVV
7KLVPHDVXUHZRXOGUHGXFHLPSDFWVRQSUHYLRXVO\XQNQRZQKXPDQ UHPDLQVWROHVVWKDQVLJQLILFDQWOHYHOV

8.a
November 14, 2022

Packet Pg. 199

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHLQWKHHYHQWKXPDQUHPDLQVDUH GLVFRYHUHG
7LPLQJ
'XULQJDOOHDUWKPRYLQJSKDVHVRISURMHFWFRQVWUXFWLRQ 0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRIFXOWXUDOUHVRXUFHPLWLJDWLRQ 7KH&RXQW\&RURQHUZLOOGHWDLOWKHILQGLQJVLQDFRURQHU¶VUHSRUW
,PSDFW*(2
3URMHFWGHPROLWLRQDQGFRQVWUXFWLRQFRXOGXQHDUWKSDOHRQWRORJLFDOUHVRXUFHV LQFOXGLQJIRVVLOV
0LWLJDWLRQ0HDVXUH*(2
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
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGUHGXFHLPSDFWVWRSDOHRQWRORJLFDOUHVRXUFHVWR OHVVWKDQVLJQLILFDQW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHLQWKHHYHQWDQ\SDOHRQWRORJLFDO UHVRXUFHVDUHGLVFRYHUHG
7LPLQJ
'XULQJDOOHDUWKPRYLQJSKDVHVRISURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRISDOHRQWRORJLFDOPLWLJDWLRQ,I SDOHRQWRORJLFDOUHVRXUFHVDUHXQFRYHUHGDUHSRUWVKDOOEHSUHSDUHG E\WKHTXDOLILHGSDOHRQWRORJLVWGHVFULELQJWKHILQGDQGLWVGHSRVLWLRQ
,PSDFW75$16
9HKLFOHWULSVDQGYHKLFOHPLOHVWUDYHOHG
907
JHQHUDWHGE\RSHUDWLRQRIWKH
SURMHFWFRXOGEHLQFRQVLVWHQWZLWK&LW\0XQLFLSDO&RGH&KDSWHUDQGWKH&LW\¶V907SROLF\ LIQRWSURSHUO\WUDFNHGDQGHQIRUFHG
0LWLJDWLRQ0HDVXUH75$16
$GGLWLRQDO7'03ODQ5HTXLUHPHQWV$7UDQVSRUWDWLRQ
'HPDQG0DQDJHPHQW
7'0
3ODQVKDOOEHSUHSDUHGDQGLPSOHPHQWHGWKDWLQFOXGHVDWD PLQLPXPWKHIROORZLQJHOHPHQWV

7KHSURMHFW$SSOLFDQWZLOOGHVLJQDWHDQRQVLWH7UDQVSRUWDWLRQ&RRUGLQDWRUWKDWZLOOEH UHVSRQVLEOHIRULPSOHPHQWDWLRQRIWKH7'03ODQLQFOXGLQJSURYLGLQJUHOHYDQW7'0WULS UHGXFWLRQDQGSURJUDPLQIRUPDWLRQWRDOOHPSOR\HHVRQVLWHDQGDUUDQJLQJIRU LQGHSHQGHQWDQQXDOPRQLWRULQJDQGHPSOR\HHVXUYH\V

8.a
November 14, 2022

Packet Pg. 200

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHSURMHFW$SSOLFDQWDQGWKH3URMHFW¶V7UDQVSRUWDWLRQ&RRUGLQDWRUZLOOEHUHVSRQVLEOHIRU HQVXULQJWKDWWKH7'03ODQLVLPSOHPHQWHGHDFK\HDUDQGDQDQQXDOPRQLWRULQJUHSRUW LVVXEPLWWHGWRWKH&LW\RI6DQ&DUORV
7KH7'03ODQPRQLWRULQJZLOOEHSUHSDUHGE\DQLQGHSHQGHQWFRQVXOWDQWSHU&LW\RI6DQ &DUORV0XQLFLSDO&RGH6HFWLRQ5HJXODUPRQLWRULQJZLOOEHQHFHVVDU\WR HQVXUHWKDWWKHLPSOHPHQWHG7'0PHDVXUHVDUHHIIHFWLYHDQGDFKLHYHWKHSHUFHQW WULSUHGXFWLRQUHTXLUHPHQW
&RQVLVWHQWZLWKFRPPRQWUDIILFHQJLQHHULQJGDWDFROOHFWLRQSUDFWLFHVWUDIILFFRQGLWLRQV ZLOOEHPRQLWRUHGDQQXDOO\E\PHDQVRIDPDQGSPFRPPXWHKRXUGULYHZD\FRXQWVDW HDFKSURMHFWDFFHVVSRLQW7KHFRXQWVZLOOLQFOXGHGDLO\DQGSHDNKRXUWUDIILFFRXQWV FRQGXFWHGEHWZHHQ
DPDQG

DPDQGEHWZHHQ
SPDQG
SPRQ
WKUHHQRQFRQVHFXWLYHGD\VSHU\HDURQW\SLFDOZHHNGD\V 7XHVGD\:HGQHVGD\RU
7KXUVGD\
GXULQJWKHIDOOZKHQVFKRROLVLQVHVVLRQ0HFKDQLFDOWXEHFRXQWVRUYLGHR FRXQWVPD\EHXVHG7KHSHDNPLQXWHSHULRGZLOOEHFDOFXODWHGIRUERWKWKHDPDQG SPSHDNSHULRG
$QDQQXDOHPSOR\HHVXUYH\ZLOOEHFRQGXFWHGE\DQLQGHSHQGHQWFRQVXOWDQWWR GHWHUPLQHHPSOR\HHWUDQVSRUWDWLRQPRGHFKRLFH
HJGULYHDORQHFDUSRROEXV
&DOWUDLQHWF
7KLVDQQXDOFRPPXWHUVXUYH\VKRXOGEHIRUPDWWHGDVDJHQHUDOVXUYH\ LQFOXGLQJQRQWUDQVSRUWDWLRQTXHVWLRQV
HJVDWLVIDFWLRQZLWKSURSHUW\PDQDJHPHQW
DFWLYLWLHVHWF
WRLQFUHDVHWKHUHVSRQVHUDWH
7KHVLWH7UDQVSRUWDWLRQ&RRUGLQDWRUZLOOZRUNZLWKDQLQGHSHQGHQWFRQVXOWDQWWRREWDLQ WUDIILFFRXQWGDWDLPSOHPHQWWKHDQQXDOHPSOR\HHFRPPXWHUVXUYH\VDQGGRFXPHQWDOO ILQGLQJVLQD7'0PRQLWRULQJUHSRUW7KHDQQXDOPRQLWRULQJUHSRUWZLOOEHVXEPLWWHGWR WKH&LW\RI6DQ&DUORVE\WKH7UDQVSRUWDWLRQ&RRUGLQDWRU7KH7'03ODQPRQLWRULQJGDWD ZLOOEHUHYLHZHGE\WKH&LW\WRDVVHVVZKHWKHUWKHJRDORIDSHUFHQWWULSUHGXFWLRQLV EHLQJPHW7KLVZLOOEHDVVHVVHGE\FRPSDULQJWKHGULYHZD\FRXQWVWRWKHWULSWDUJHWVRI WKLV7'0SODQUHSRUW
,IWKH&LW\RI6DQ&DUORVGHWHUPLQHVWKDWWKHSHUFHQWWULSUHGXFWLRQJRDOLVQRWEHLQJ DFKLHYHGDGGLWLRQDO7'0PHDVXUHVPD\EHLPSOHPHQWHG0RGLILFDWLRQVWRWKH7'0 3ODQPD\LQFOXGHDGGLWLRQDOSURJUDPVRUVXEVWLWXWHDFWLYLWLHVIRUDFKLHYLQJYHKLFOHWULS UHGXFWLRQV7KHDQQXDO7'0PRQLWRULQJUHSRUWZLOOGHVFULEHDQ\SODQQHGPRGLILFDWLRQVWR WKH7'0SURJUDPVXFKWKDWWKHSHUFHQWWULSUHGXFWLRQLVPDLQWDLQHGRUDFKLHYHGE\ WKHIROORZLQJPRQLWRULQJF\FOH
,IWKHSHUHQWWULSUHGXFWLRQJRDOLVQRWPHWEDVHGRQDILYH\HDUUHYLHZRI7'0 PRQLWRULQJUHSRUWVWKH&LW\PD\UHTXLUHPRUHVWULQJHQW7'0PHDVXUHVEHLPSOHPHQWHG DORQJZLWKDVL[PRQWKPRQLWRULQJVFKHGXOH,IWKHSHUFHQWWULSUHGXFWLRQJRDOLVQRW DFKLHYHGE\\HDUVL[WKHQWKH&LW\PD\LQLWLDWHDUHYLHZRIWKHEXLOGLQJRFFXSDQF\ SHUPLWFRQGLWLRQXVHSHUPLWRUHQDFWRWKHUPHDVXUHV
LQFOXGLQJILQHV
DLPHGDW
DFKLHYLQJDPLQLPXPRISHUFHQWWULSUHGXFWLRQ
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGHIIHFWLYHO\WUDFNDQGLPSOHPHQWWKH&LW\¶V7'0 UHTXLUHPHQWVIRUSURMHFWVDQGUHGXFHSRWHQWLDO907LPSDFWVWROHVV WKDQVLJQLILFDQW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWDQGRULWV7UDQVSRUWDWLRQ&RRUGLQDWRUVKDOOEH UHVSRQVLEOHIRUWKHLPSOHPHQWDWLRQRIWKH7'03ODQ$QLQGHSHQGHQW FRQVXOWDQWVKDOOFRQGXFWWKHPRQLWRULQJIRUWKH7'03ODQ 7LPLQJ
'XULQJSURMHFWRSHUDWLRQ
0RQLWRULQJ
$VVSHFLILHGLQ&LW\RI6DQ&DUORV0XQLFLSDO&RGH6HFWLRQ

8.a
November 14, 2022

Packet Pg. 201

'UDIW0LWLJDWHG1HJDWLYH'HFODUDWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
5(&25'2)352&((',1*6$1'&8672',$12)'2&80(176
7KHUHFRUGXSRQZKLFKDOOILQGLQJVDQGGHWHUPLQDWLRQVUHODWHGWRWKHDSSURYDORIWKHSURMHFWDUH EDVHGLQFOXGHVWKHIROORZLQJ

7KH0LWLJDWHG1HJDWLYH'HFODUDWLRQDQGDOOGRFXPHQWVUHIHUHQFHGLQRUUHOLHGXSRQE\ WKH0LWLJDWHG1HJDWLYH'HFODUDWLRQ
$OOLQIRUPDWLRQ
LQFOXGLQJZULWWHQHYLGHQFHDQGWHVWLPRQ\
SURYLGHGE\&LW\RI6DQ&DUORV
VWDIIWRWKHGHFLVLRQPDNHU
V
UHODWLQJWRWKH0LWLJDWHG1HJDWLYH'HFODUDWLRQWKH
DSSURYDOVDQGWKH3URMHFW
$OOLQIRUPDWLRQ
LQFOXGLQJZULWWHQHYLGHQFHDQGWHVWLPRQ\
SUHVHQWHGWRWKH&LW\RI6DQ
&DUORVE\WKHHQYLURQPHQWDOFRQVXOWDQWZKRSUHSDUHGWKH0LWLJDWHG1HJDWLYH'HFODUDWLRQ RULQFRUSRUDWHGLQWRUHSRUWVSUHVHQWHGWRWKH&LW\RI6DQ&DUORV $OOLQIRUPDWLRQ
LQFOXGLQJZULWWHQHYLGHQFHDQGWHVWLPRQ\
SUHVHQWHGWRWKH&LW\RI6DQ
&DUORVIURPRWKHUSXEOLFDJHQFLHVDQGPHPEHUVRIWKHSXEOLFUHODWHGWRWKH3URMHFWRU WKH0LWLJDWHG1HJDWLYH'HFODUDWLRQ
$OODSSOLFDWLRQVOHWWHUVWHVWLPRQ\DQGSUHVHQWDWLRQVUHODWLQJWRWKH3URMHFW $OORWKHUGRFXPHQWVFRPSRVLQJWKHUHFRUGSXUVXDQWWR3XEOLF5HVRXUFHV&RGHVHFWLRQ ,
7KH&LW\RI6DQ&DUORVLVWKHFXVWRGLDQRIWKHGRFXPHQWVDQGRWKHUPDWHULDOVWKDWFRQVWLWXWHWKH UHFRUGRIWKHSURFHHGLQJVXSRQZKLFKWKH&LW\RI6DQ&DUORV¶VGHFLVLRQVDUHEDVHG7KHFRQWDFW IRUWKLVPDWHULDOLV

/LVD&RVWD6DQGHUV3ULQFLSDO3ODQQHU
&LW\RI6DQ&DUORV
(OP6WUHHW
6DQ&DUORV&$

3KRQH

(PDLO
/FRVWD6DQGHUV#FLW\RIVDQFDUORVRUJ

8.a
November 14, 2022

Packet Pg. 202

7DEOHRI&RQWHQWV 3DJHL

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,1'8675,$/52$'/,)(6&,(1&(352-(&7,1,7,$/678'< 7$%/(2)&217(176
&KDSWHU ,QWURGXFWLRQ 3URMHFW%DFNJURXQGDQG2YHUYLHZ 5HJXODWRU\*XLGDQFH /HDG$JHQF\&RQWDFW,QIRUPDWLRQ 'RFXPHQW3XUSRVHDQG2UJDQL]DWLRQ &KDSWHU 3URMHFW'HVFULSWLRQ 3URMHFW/RFDWLRQ 3URMHFW6LWH 3URSRVHG3URMHFW 3URMHFW$FWLYLWLHV &RPPXQLW\%HQHILWV &LW\&RQGLWLRQVRI$SSURYDO 5HTXLUHG$SSURYDOV &KDSWHU (QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV $HVWKHWLFV $JULFXOWXUDODQG)RUHVW5HVRXUFHV $LU4XDOLW\ %LRORJLFDO5HVRXUFHV &XOWXUDO5HVRXUFHV (QHUJ\
*HRORJ\DQG6RLOV
*UHHQKRXVH*DV(PLVVLRQV
+D]DUGVDQG+D]DUGRXV0$WHULDOV +\GURORJ\DQG:DWHU4XDOLW\ /DQG8VHDQG3ODQQLQJ 0LQHUDO5HVRXUFHV 1RLVH 3RSXODWLRQDQG+RXVLQJ 3XEOLF6HUYLFHV 5HFUHDWLRQ

7UDQVSRUWDWLRQ 7ULEDO&XOWXUDO5HVRXUFHV
8WLOLWLHVDQG6HUYLFH6\VWHPV

8.a
November 14, 2022

Packet Pg. 203

7DEOHRI&RQWHQWV 3DJHLL

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
:LOGILUH 0DQGDWRU\)LQGLQJVRI6LJQLILFDQFH &KDSWHU /LVWRI3UHSDUHUV
7$%/(6
7DEOH
3URSRVHG%XLOGLQJ$UHD 7DEOH
6WDQGDUG6SHFLILFDWLRQV$SSOLFDEOHWRWKH3URMHFW 7DEOH
3RWHQWLDOO\$SSOLFDEOH%$$40'5XOHVDQG5HJXODWLRQV 7DEOH
%$$40'&OHDQ$LU3ODQ&RQWURO0HDVXUHV&RQVLVWHQF\ 7DEOH
(VWLPDWHG3URMHFW&RQVWUXFWLRQ&ULWHULD$LU3ROOXWDQW(PLVVLRQV

7DEOH
(VWLPDWHG3URMHFW2SHUDWLRQDO&ULWHULD$LU3ROOXWDQW(PLVVLRQV 7DEOH
0D[LPXP,QFUHDVHG&DQFHU5LVNIURP3URMHFW&RQVWUXFWLRQ'30(PLVVLRQV 7DEOH
+LVWRULF5HVRXUFHVLQWKH3URMHFW9LFLQLW\ 7DEOH
&XOWXUDO5HSRUWVZLWKLQWKH3URMHFW$UHD 7DEOH
3URMHFW*UHHQKRXVH*DV(PLVVLRQV 7DEOH

3URMHFW&RQVLVWHQF\ZLWKWKH&LW\RI6DQ&DUORV¶V&OLPDWH0LWLJDWLRQ$FWLRQ3ODQ 7DEOH
7\SLFDO2XWGRRUDQG,QGRRU1RLVH/HYHOV 7DEOH
([LVWLQJ$PELHQW1RLVH/HYHOV
G%$
DWWKH3URMHFW6LWH 7DEOH
6DQ&DUORV*HQHUDO3ODQ1RQ7UDQVSRUWDWLRQ1RLVH6WDQGDUGV 7DEOH
7\SLFDO&RQVWUXFWLRQ(TXLSPHQW1RLVH/HYHOV

7DEOH
&DOWUDQV¶9LEUDWLRQ&ULWHULDIRU%XLOGLQJ'DPDJH 7DEOH
&DOWUDQV¶9LEUDWLRQ&ULWHULDIRU+XPDQ5HVSRQVH 7DEOH
*URXQGERUQH9LEUDWLRQ(VWLPDWHV 7DEOH
3URMHFW7ULS*HQHUDWLRQ 7DEOH
3URMHFW9076XPPDU\ ),*85(6
)LJXUH±3URMHFW/RFDWLRQ )LJXUH±3URMHFW9LFLQLW\ )LJXUH±([LVWLQJ6LWH3KRWRV )LJXUH±3URSRVHG6LWH3ODQ )LJXUH±%XLOGLQJ(OHYDWLRQV )LJXUH±9LVXDO5HQGHULQJVIURP2IIVLWH/RFDWLRQV )LJXUH±9LVXDO5HQGHULQJVIURP2QVLWHDQG$GMDFHQW/RFDWLRQV

)LJXUH±*URXQG)ORRU/DQGVFDSH3ODQ

8.a
November 14, 2022

Packet Pg. 204

7DEOHRI&RQWHQWV 3DJHLLL

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
)LJXUH
±5RRI7HUUDFH/DQGVFDSH3ODQ )LJXUH±3URSRVHG,QGXVWULDO5RDG+ROO\6WUHHW,QWHUVHFWLRQ,PSURYHPHQWV )LJXUH±8WLOLWLHV3ODQ )LJXUH±6WRUPZDWHU&RQWURO3ODQ )LJXUH±&RQVWUXFWLRQ+HDOWK5LVN$VVHVVPHQW
0(,5DQG30, $33(1',&(6
$SSHQGL[$
*ODUH6WXG\
$SSHQGL[%
$LU4XDOLW\+HDOWK5LVN$VVHVVPHQW(QHUJ\DQG*UHHQKRXVH*DV0DWHULDOV x $SSHQGL[%
8QPLWLJDWHG&DO((0RG2XWSXW)LOHV
x $SSHQGL[%
0LWLJDWHG&DO((0RG2XWSXW)LOHV
x $SSHQGL[%
+HDOWK5LVN$VVHVVPHQW0HWKRGRORJ\
x $SSHQGL[%
+HDOWK5LVN$VVHVVPHQW5HVXOWV
x $SSHQGL[%
$(502'2XWSXW)LOHV
$SSHQGL[&
1RLVH$SSHQGL[
x $SSHQGL[&
$PELHQW1RLVH0RQLWRULQJ'DWD
x $SSHQGL[&
1RLVH&DOFXODWLRQVIRU3DUNLQJ*DUDJH
$SSHQGL['

x $SSHQGL['
7'03ODQ
x $SSHQGL['
907$QDO\VLV

8.a
November 14, 2022

Packet Pg. 205

7DEOHRI&RQWHQWV 3DJHLY

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KLVSDJHLVLQWHQWLRQDOO\EODQN

8.a
November 14, 2022

Packet Pg. 206

,QWURGXFWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&KDSWHU,QWURGXFWLRQ
7KLV,QLWLDO6WXG\
,6
HYDOXDWHVWKHSRWHQWLDOHQYLURQPHQWDOHIIHFWVRIFRQVWUXFWLQJDQHZ FRPPHUFLDODQGOLIHVFLHQFHRIILFHEXLOGLQJRQDVLWHWKDWLVFXUUHQWO\GHYHORSHGZLWKDSXEOLF VHOIVWRUDJHIDFLOLW\LQWKH&LW\RI6DQ&DUORV
&LW\
7KLVSURSRVHGDFWLYLW\FRQVWLWXWHVDSURMHFW
XQGHUWKH&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW
&(4$

352-(&7%$&.*5281'$1'29(59,(:
0HQOR(TXLWLHVWKHSURMHFWDSSOLFDQW
$SSOLFDQW
LVSURSRVLQJWRFRQVWUXFWDQHZDSSUR[LPDWHO\
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¶V(DVW6LGH,QQRYDWLRQ'LVWULFWDQDUHDWKDWKDVEHHQWUDQVLWLRQLQJ IURPORZLQWHQVLW\FRPPHUFLDODQGLQGXVWULDOEXVLQHVVHVWRELRWHFKQRORJ\OLIHVFLHQFHVDQG KLJKWHFKRIILFHODQGXVHVRYHUWKHODVWGHFDGH,QWKHLPPHGLDWHYLFLQLW\RIWKHSURMHFWVLWH +LJKZD\ERUGHUVWKHVLWHWRWKHHDVWDQGVRXWKD6XWWHU+HDOWKPHGLFDOIDFLOLW\DQGLWV DVVRFLDWHGSDUNLQJJDUDJHDUHORFDWHGQRUWKRIWKHSURMHFWVLWHDQGDQ,Q12XWLVORFDWHG LPPHGLDWHO\ZHVWRIWKHSURMHFWVLWH
6LQJOHIDPLO\UHVLGHQFHVDUHORFDWHGWRWKHZHVWDQGVRXWKZHVWRIWKHSURMHFWVLWHDFURVV ,QGXVWULDO5RDG
WKH6DQ&DUORV$LUSRUWLVORFDWHGHDVWRIWKHSURMHFWVLWH DQGDSDUFHOFXUUHQWO\
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
7KH&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW
&(4$
3XEOLF5HVRXUFHV&RGHHWVHT
DQG
WKH&(4$*XLGHOLQHV
&&5HWVHT
HVWDEOLVKWKH&LW\RI6DQ&DUORVDVWKHOHDG
DJHQF\IRUWKHSURMHFW7KHOHDGDJHQF\LVGHILQHGLQ&(4$*XLGHOLQHV6HFWLRQDV³WKH SXEOLFDJHQF\ZKLFKKDVWKHSULQFLSDOUHVSRQVLELOLW\IRUFDUU\LQJRXWRUDSSURYLQJDSURMHFW´7KH OHDGDJHQF\LVUHVSRQVLEOHIRUSUHSDULQJWKHDSSURSULDWHHQYLURQPHQWDOUHYLHZGRFXPHQWXQGHU &(4$7KH6DQ&DUORV&LW\&RXQFLOVHUYHVDVWKHGHFLVLRQPDNLQJERG\IRUWKH&LW\DQGLV UHVSRQVLEOHIRUDGRSWLQJWKH&(4$GRFXPHQWDQGDSSURYLQJWKHSURMHFW &(4$*XLGHOLQHV6HFWLRQVWDWHVDSXEOLFDJHQF\VKDOOSUHSDUHDSURSRVHG1HJDWLYH 'HFODUDWLRQRUD0LWLJDWHG1HJDWLYH'HFODUDWLRQZKHQ

,WLVQRWFXUUHQWO\NQRZQZKHQWKH&LW\ZLOOXQGHUWDNHWKHVHLPSURYHPHQWWRWKH+ROO\6WUHHWDQG ,QGXVWULDO5RDGLQWHUVHFWLRQ

8.a
November 14, 2022

Packet Pg. 207

,QWURGXFWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KH,QLWLDO6WXG\VKRZVWKDWWKHUHLVQRVXEVWDQWLDOHYLGHQFHLQOLJKWRIWKHZKROHUHFRUG EHIRUHWKHDJHQF\WKDWWKHSURMHFWPD\KDYHDVLJQLILFDQWHIIHFWRQWKHHQYLURQPHQWRU 7KH,QLWLDO6WXG\LGHQWLILHVSRWHQWLDOO\VLJQLILFDQWHIIHFWVEXW
x 5HYLVLRQVLQWKHSURMHFWSODQV PDGHEHIRUHDSURSRVHG0LWLJDWHG1HJDWLYH 'HFODUDWLRQDQG,QLWLDO6WXG\DUHUHOHDVHGIRUSXEOLFUHYLHZZRXOGDYRLGWKHHIIHFWVRU PLWLJDWHWKHHIIHFWVWRDSRLQWZKHUHQRVLJQLILFDQWHIIHFWVZRXOGRFFXUDQG x 7KHUHLVQRVXEVWDQWLDOHYLGHQF HLQOLJKWRIWKHZKROHUHFRUGEHIRUHWKHDJHQF\WKDW WKHSURMHFWDVUHYLVHGPD\KDYHDVLJQLILFDQWHIIHFWRQWKHHQYLURQPHQW 3XUVXDQWWR6HFWLRQWKH&LW\KDVGHWHUPLQHGD0LWLJDWHG1HJDWLYH'HFODUDWLRQLVWKH DSSURSULDWHHQYLURQPHQWDOUHYLHZGRFXPHQWIRUWKH,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW 7RHQVXUHWKDWWKHPLWLJDWLRQPHDVXUHVDQGSURMHFWUHYLVLRQVLGHQWLILHGLQD0LWLJDWHG1HJDWLYH 'HFODUDWLRQDUHLPSOHPHQWHG&(4$*XLGHOLQHV6HFWLRQ
D
UHTXLUHVWKH&LW\WRDGRSWD
SURJUDPIRUPRQLWRULQJRUUHSRUWLQJRQWKHUHYLVLRQVZKLFKLWKDVUHTXLUHGLQWKHSURMHFWDQGWKH PHDVXUHVLWKDVLPSRVHGWRPLWLJDWHRUDYRLGVLJQLILFDQWHQYLURQPHQWDOHIIHFWV /($'$*(1&<&217$&7,1)250$7,21
7KHOHDGDJHQF\IRUWKHSURMHFWLVWKH&LW\RI6DQ&DUORV7KHFRQWDFWSHUVRQIRUWKHOHDG DJHQF\LV

/LVD&RVWD6DQGHUV3ULQFLSDO3ODQQHU
&LW\RI6DQ&DUORV
(OP6WUHHW
6DQ&DUORV&$

3KRQH

(PDLO
/FRVWD6DQGHUV#FLW\RIVDQFDUORVRUJ
'2&80(17385326($1'25*$1,=$7,21
7KHSXUSRVHRIWKLVGRFXPHQWLVWRHYDOXDWHWKHSRWHQWLDOHQYLURQPHQWDOHIIHFWVRIWKH ,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW7KLVGRFXPHQWLVRUJDQL]HGDVIROORZV
x &KDSWHU±,QWURGXFWLRQ7KLVFKDSWHULQWURGXFHVWKHSURMHFW DQGGHVFULEHVWKHSXUSRVH DQGRUJDQL]DWLRQRIWKLVGRFXPHQW
x &KDSWHU±3URMHFW'HVFULSWL RQ7KLVFKDSWHUGHVFULEHVWKHSURMHFWORFDWLRQDUHDVLWH REMHFWLYHVDQGFKDUDFWHULVWLFV
x &KDSWHU±(QYLURQPHQWDO&KHFNOLVWDQG5HVSRQVHV7KLVFKDSWH UFRQWDLQVWKH (QYLURQPHQWDO&KHFNOLVWWKDWLGHQWLILHVWKHVLJQLILFDQFHRISRWHQWLDOHQYLURQPHQWDO LPSDFWV
E\HQYLURQPHQWDOLVVXH
DQGDEULHIGLVFXVVLRQRIHDFKLPSDFWUHVXOWLQJIURP
LPSOHPHQWDWLRQRIWKHSURSRVHGSURMHFW7KLVFKDSWHUDOVRFRQWDLQVWKH0DQGDWRU\ )LQGLQJVRI6LJQLILFDQFH
x &KDSWHU±5HSRUW3UHSDUDWLRQ 7KLVFKDSWHUSURYLGHVDOLVWRIWKRVHLQYROYHGLQWKH SUHSDUDWLRQRIWKLVGRFXPHQW
x $SSHQGLFHV
o $SSHQGL[$
*ODUH6WXG\
o $SSHQGL[%
$LU4XDOLW\+HDOWK5LVN$VVHVVPHQW(QHUJ\DQG*UHHQKRXVH*DV 0DWHULDOV
o $SSHQGL[%
8QPLWLJDWHG&DO((0RG2XWSXW)LOHV
o $SSHQGL[%
0LWLJDWHG&DO((0RG2XWSXW)LOHV
o $SSHQGL[%
+HDOWK5LVN$VVHVVPHQW0HWKRGRORJ\

8.a
November 14, 2022

Packet Pg. 208

,QWURGXFWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
o $SSHQGL[%
+HDOWK5LVN$VVHVVPHQW5HVXOWV
o $SSHQGL[%
$(502'2XWSXW)LOHV
o $SSHQGL[&
1RLVH$SSHQGL[
o $SSHQGL[&
$PELHQW1RLVH0RQLWRULQJ'DWD
o $SSHQGL[&
1RLVH&DOFXODWLRQVIRU3DUNLQJ*DUDJH
o $SSHQGL['
7UDQVSRUWDWLRQ$SSHQGL[
o $SSHQGL['
7'03ODQ
o $SSHQGL['
907$QDO\VLV

8.a
November 14, 2022

Packet Pg. 209

,QWURGXFWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KLVSDJHLVLQWHQWLRQDOO\EODQN

8.a
November 14, 2022

Packet Pg. 210

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&KDSWHU3URMHFW'HVFULSWLRQ
7KH&LW\RI6DQ&DUORVKDVUHFHLYHGDQDSSOLFDWLRQIRUWKH,QGXVWULDO5RDG/LIH6FLHQFH 3URMHFW

SURMHFW
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
352-(&7/2&$7,21
7KHSURMHFWVLWHLVORFDWHGDW,QGXVWULDO5RDGLQWKHQRUWKHUQSRUWLRQRIWKH&LW\RI6DQ &DUORV&DOLIRUQLDLQ6DQ0DWHR&RXQW\DORQJWKH6DQ)UDQFLVFR3HQLQVXODDVVKRZQRQ )LJXUH±3URMHFW/RFDWLRQ6DQ&DUORVLVERUGHUHGE\WKH&LW\RI%HOPRQWWRWKHQRUWKWKH6DQ )UDQFLVFR%D\WRWKHHDVW5HGZRRG&LW\WRWKHVRXWKDQGWKH3XOJDV5LGJH2SHQ6SDFH 3UHVHUYH(GJHZRRG3DUNDQG1DWXUDO5HVHUYHDQGRWKHURSHQVSDFHDQG,QWHUVWDWH ,

WRWKHZHVW
5HJLRQDODFFHVVWRWKHSURMHFWVLWHLVSURYLGHGYLD8QLWHG6WDWHV5RXWH +LJKZD\

ZKLFKLVDQHLJKWODQHIUHHZD\ORFDWHGLPPHGLDWHO\HDVWRIWKHSURMHFWVLWH$FFHVVWRWKHSURMHFW VLWHIURP+LJKZD\LVSURYLGHGIURPWKH+ROO\6WUHHWH[LW/RFDODFFHVVWRWKHSURMHFWVLWHLV SURYLGHGE\+ROO\6WUHHW,QGXVWULDO5RDG2OG&RXQW\5RDG+DUERU%RXOHYDUGDQG6WDWH5RXWH
(O&DPLQR5HDO

7KHSURMHFWVLWHLVORFDWHGDSSUR[LPDWHO\PLOHVVRXWKRI6DQ)UDQFLVFR,QWHUQDWLRQDO$LUSRUW

6)2
6DQ&DUORV$LUSRUWLVORFDWHGDSSUR[LPDWHO\PLOHVWRWKHHDVWRIWKHSURMHFWVLWHDQG WKH6DQ&DUORV&DOWUDLQVWDWLRQLVDSSUR[LPDWHO\PLOHVWRWKHVRXWKZHVWRIWKHSURMHFWVLWH 352-(&76,7(
7KHDSSUR[LPDWHO\DFUHSURMHFWVLWHFRQVLVWVRIDVLQJOHSDUFHO $VVHVVRU3DUFHO1XPEHU

DQGLVFXUUHQWO\GHYHORSHGZLWKDQDSSUR[LPDWHO\VTXDUHIRRWILYH EXLOGLQJVHOIVWRUDJHIDFLOLW\DVVKRZQRQ)LJXUH±3URMHFW9LFLQLW\7KHSURMHFWVLWHLVORFDWHG LQWKHQRUWKHUQSRUWLRQRIWKH&LW\¶V(DVW6LGH,QQRYDWLRQ'LVWULFWDQDUHDWKDWKDVEHHQ WUDQVLWLRQLQJIURPORZLQWHQVLW\FRPPHUFLDODQGLQGXVWULDOEXVLQHVVHVWRELRWHFKQRORJ\OLIH VFLHQFHVDQGKLJKWHFKRIILFHODQGXVHVRYHUWKHODVWGHFDGH)LJXUH±([LVWLQJ6LWH3KRWRV GHSLFWVH[LVWLQJFRQGLWLRQVDWDQGLQSUR[LPLW\RIWKHSURMHFWVLWH *HQHUDO3ODQ/DQG8VH'HVLJQDWLRQ
7KH&LW\RI6DQ&DUORV*HQHUDO3ODQGHVLJQDWHVWKHSURMHFWVLWHDV*HQHUDO &RPPHUFLDO,QGXVWULDO
*&,
DODQGXVHGHVLJQDWLRQLQWHQGHGSULPDULO\IRUSURGXFWLRQDQG PDQXIDFWXULQJXVHV8VHVLQWKLVODQGXVHGHVLJQDWLRQJHQHUDOO\LQFOXGHUHWDLOVHUYLFHRIILFH 5 'DQGLQGXVWULDOXVHV

)RURULHQWDWLRQSXUSRVHVWKLV,QLWLDO6WXG\FRQVLGHUV86+LJKZD\DQG,QGXVWULDO5RDGWRUXQLQD QRUWKVRXWKGLUHFWLRQDQG+ROO\6WUHHWLQDQHDVWZHVWGLUHFWLRQ$OOUHIHUHQFHVWRQRUWKHDVWVRXWKDQG ZHVWXVHWKLVVDPHRULHQWDWLRQ

8.a
November 14, 2022

Packet Pg. 211

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
=RQLQJ
7KHSURMHFWVLWHKDVD]RQLQJGHVLJQDWLRQRI/&
/DQGPDUN&RPPHUFLDO
7KLV]RQLQJ
GHVLJQDWLRQLVLQWHQGHGWRDFFRPPRGDWHNH\SDUFHOVNQRZQFROOHFWLYHO\DVODQGPDUNVLWHV ZKLFKDUHWDUJHWHGIRUHFRQRPLFGHYHORSPHQWRIUHJLRQDOUHWDLODQGGHVWLQDWLRQRULHQWHGXVHV LQFOXGLQJODUJHVFDOHRIILFHFRPSOH[HVDQGKRWHOVDVLQGLYLGXDORUFRPELQHGXVHVWKDWDUH LQWHQGHGWRVHUYHUHJLRQDOXVHUVDQGKDYHVLJQLILFDQWEHQHILFLDOUHVXOWVLQHPSOR\PHQWJURZWK DQGFRQWULEXWHWRWKHHFRQRPLFVXVWDLQDELOLW\RIWKH&LW\DQGLPSOHPHQWDWLRQRIWKH&LW\¶V (FRQRPLF'HYHORSPHQW3ODQ7KH/&]RQLQJGHVLJQDWLRQKDVDPD[LPXPEXLOGLQJKHLJKWRI IHHWDPD[LPXPIORRUDUHDUDWLR
)$5
RIDQGUHTXLUHVDIRRWVHWEDFNRQIURQWDQGVLGH ORWOLQHV
6XUURXQGLQJ/DQG8VHVDQG([LVWLQJ6LWH&KDUDFWHULVWLFV ,QWKHLPPHGLDWHYLFLQLW\RIWKHSURMHFWVLWH+LJKZD\ERUGHUVWKHVLWHWRWKHHDVW+ROO\ 6WUHHWERUGHUVWKHVLWHWRWKHVRXWKD6XWWHU+HDOWKPHGLFDOIDFLOLW\DQGLWVDVVRFLDWHGSDUNLQJ JDUDJHDUHORFDWHGQRUWKRIWKHSURMHFWVLWHDQGDQ,Q12XWIDVWIRRGUHVWDXUDQWLVORFDWHGZHVW RIWKHSURMHFWVLWH$FFHVVWRWKHVLWHLVYLD,QGXVWULDO5RDG VHH)LJXUH

6LQJOHIDPLO\UHVLGHQFHVDUHORFDWHGWRWKHZHVWDQGVRXWKZHVWRIWKHSURMHFWVLWHDFURVV ,QGXVWULDO5RDG
WKH6DQ&DUORV$LUSRUWLVORFDWHGDSSUR[LPDWHO\PLOHVWRWKHHDVWRIWKH SURMHFWVLWH
DQGDSDUFHOFXUUHQWO\GHYHORSHGZLWKDOLJKWLQGXVWULDOXVHEXWWKDWLVEHLQJ SURSRVHGIRUUHGHYHORSPHQWDVDKRWHO
WKH+RWHO,QGLJR
LVORFDWHGVRXWKRIWKHSURMHFWVLWH
DFURVV+ROO\6WUHHWDW,QGXVWULDO5RDG
7KHSURMHFWVLWHLVFXUUHQWO\GHYHORSHGZLWKDQDSSUR[LPDWHO\VTXDUHIRRWILYHEXLOGLQJ VHOIVWRUDJHIDFLOLW\WKDWKDVERWKRQHDQGWZRVWRU\VWUXFWXUHVRQVLWH7KHIURQWRIILFHIRUWKH VWRUDJHIDFLOLW\ZKLFKLVWZRVWRULHVLVORFDWHGLQWKHQRUWKZHVWFRUQHURIWKHLQWHULRUSURMHFWVLWH LPPHGLDWHO\DGMDFHQWWRWKHSURMHFW¶VGULYHZD\7KHEXLOGLQJWKDWLVORFDWHGDGMDFHQWWRWKH HDVWHUQSURSHUW\OLQHDQGH[WHQGVWRZDUGWKHVRXWKHUQSRUWLRQRIWKHSURMHFWVLWHLVDOVRWZR VWRULHV$OORWKHUVWUXFWXUHVRQVLWHDUHRQHVWRU\7KHVLWHLVDOPRVWHQWLUHO\KDUGVFDSHG WKH
SRUWLRQVRIWKHVLWHWKDWDUHQRWGHYHORSHGZLWKVWUXFWXUHVDUHSDYHGDQGVHUYHHLWKHUDVGULYH LVOHVRUSDUNLQJVSDFHV7KHUHLVRQHWUHHRQWKHSURMHFWVLWHORFDWHGRQWKHQRUWKHUQVLGHRIWKH PLGGOHEXLOGLQJV
LHWKHSRUWLRQVRIWKHH[LVWLQJEXLOGLQJVWKDWDUHOHDVHGRXWDVRIILFHVSDFH
3KDVH,DQG3KDVH,,(QYLURQPHQWDO6LWH$VVHVVPHQWV
(6$V
ZHUHSUHSDUHGIRUWKHSURMHFWWR
UHYLHZVLWHXVHDQGFXUUHQWFRQGLWLRQVWRFKHFNIRUWKHVWRUDJHXVHSURGXFWLRQRUGLVSRVDORI KD]DUGRXVRUSRWHQWLDOO\KD]DUGVPDWHULDOVDWWKHVLWHEDVHGRQWKHVLWH¶VSDVWDQGFXUUHQWXVH 7HVWLQJDWWKHVLWHLQGLFDWHVWKDWDOWKRXJKVRPHWHVWLQJZRXOGEHUHTXLUHGGXULQJH[FDYDWLRQDQG RIIKDXO
WRGHWHUPLQHWKHDSSURSULDWHGLVSRVDOPHWKRG
WKDWILOOZRXOGEHVXLWDEOHIRUUHXVHRQ
VLWHDQGWKDWQRUHPHGLDODFWLRQZRXOGEHUHTXLUHGGXHWRH[LVWLQJUHJXODWLRQV7KH3KDVH,(6$ DOVRGHWHUPLQHGWKDWGXHWRWKHDJHRIWKHH[LVWLQJVWUXFWXUHVRQVLWHWKDWDVEHVWRVFRQWDLQLQJ PDWHULDOVDQGOHDGEDVHGSDLQWPD\H[LVWZLWKLQWKHVWUXFWXUHV 7KHVRXWKZHVWFRUQHURIWKHSURMHFWVLWHFRQWDLQVDSRUWLRQRIDQRSHQGUDLQDJHFKDQQHOWKDW UXQVLQWRDODUJHURSHQGUDLQDJHGLWFKLPPHGLDWHO\VRXWKRIWKHSURMHFWERXQGDU\LQD&DOWUDQV HDVHPHQWIRUWKH+ROO\6WUHHWH[LWUDPSDQGRYHUSDVV
VHH)LJXUH
ERWWRPSKRWRRQSDJH

7KHVPDOOHUGUDLQDJHFKDQQHOLQWKHSURMHFWVLWHDQGWKHODUJHUGUDLQDJHGLWFKLQWKH&DOWUDQV ULJKWRIZD\FRQWDLQZHWODQGYHJHWDWLRQ
VHH)LJXUH
ERWWRPSKRWRRQSDJHDQGSKRWRVRQ
SDJH
7KHGUDLQDJHFKDQQHOZLWKLQWKHSURMHFWSDUFHOUHFHLYHVVWRUPZDWHUUXQRIIIURP
7KHH[LVWLQJEXLOGLQJVSDFHSUHVHQWHGIRUWKHVLWHLQFOXGHVVTXDUHIHHWRIRIILFHVSDFHWKDWLV OHDVHGWRWHQDQWV7KHVLWHDOVRLQFOXGHVDQDSSUR[LPDWHO\VTXDUHIRRWSURSHUW\PDQDJHPHQWRIILFH ZKLFKLVFRQVLGHUHGWREHEXLOGLQJVSDFHWKDWVXSSRUWVWKHRSHUDWLRQRIWKHVHOIVWRUDJHIDFLOLW\

8.a
November 14, 2022

Packet Pg. 212

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
SRUWLRQVRIWKH,Q12XWIDVWIRRGUHVWDXUDQWVLWHDQGIURPSRUWLRQVRIWKHSURMHFWVLWH7KLV GUDLQDJHFKDQQHODFWVDVDWULEXWDU\WRWKHODUJHURSHQGUDLQDJHGLWFKLQWKH&DOWUDQVULJKWRI ZD\
352326('352-(&7
7KHSURSRVHGSURMHFWZRXOGFRQVLVWRIGHPROLVKLQJWKHH[LVWLQJDSSUR[LPDWHO\VTXDUH IRRWVHOIVWRUDJHIDFLOLW\DQGFRQVWUXFWLQJDQHZDSSUR[LPDWHO\VTXDUHIRRWVL[VWRU\ EXLOGLQJWKDWZRXOGEHXVHGIRUFRPPHUFLDOOLIHVFLHQFHXVHV )LJXUH±3URSRVHG6LWH3ODQ

7KHSURSRVHGVWUXFWXUHZRXOGIHDWXUHIRXUOHYHOVRIRIILFHODERUDWRU\VSDFHVLWXDWHGRYHUWZR OHYHOVRIDERYHJUDGHSDUNLQJDQGWZROHYHOVRIEHORZJUDGHSDUNLQJ7KHSURSRVHGVWUXFWXUH ZRXOGIHDWXUHDQDUWLVWLFDUFKLWHFWXUDOHOHPHQWRQLWVVRXWKHDVWHUQIDoDGH7KHSURMHFWPD\DOVR LQYROYHWKHFRQVWUXFWLRQRIDSHGHVWULDQEULGJHSDWKZD\WRFRQQHFWWKHVRXWKHDVWFRUQHURIWKH SURMHFWVLWHWRWKH+ROO\6WHHWDQG,QGXVWULDO5RDGLQWHUVHFWLRQ1HZODQGVFDSLQJZRXOGEH DGGHGDGMDFHQWWRWKHSHGHVWULDQEULGJHSDWKZD\
7KHSURSRVHGVWUXFWXUHZRXOGEHFRPSULVHGRIDSSUR[LPDWHO\VTXDUHIHHWRIODERUDWRU\ DQGRIILFHVSDFHDQGDSSUR[LPDWHO\VTXDUHIHHWRIJDUDJHDUHDDQGRWKHUQRQ RFFXSLDEOHEXLOGLQJVSDFH2IWKHDSSUR[LPDWHO\VTXDUHIHHWRIODERUDWRU\DQGRIILFH VSDFH

VTXDUHIHHW
ZRXOGEHXVHGDVRIILFHVSDFHDQG
VTXDUHIHHW

ZRXOGEHXVHGDVODERUDWRU\VSDFH$SSUR[LPDWHO\VTXDUHIHHWRIWKHVXUIDFHRIWKHVLWH ZRXOGEHGHGLFDWHGWREXLOGLQJFRYHUDJH
VTXDUHIHHWZRXOGEHIRUVLGHZDONVSDWLRV
SDWKVGULYHZD\VDQGVWUHHWV
DQGDSSUR[LPDWHO\
VTXDUHIHHWZRXOGEHODQGVFDSLQJ
7KH$SSOLFDQWZRXOGUHTXHVWDUH]RQLQJRIWKHSURMHFWSDUFHOIURPLWVFXUUHQW]RQLQJRI/&

/DQGPDUN&RPPHUFLDO
WR3'
3ODQQHG'HYHORSPHQW
WRH[FOXGHDERYHJUDGHSDUNLQJIURPWKH
)ORRU$UHD5DWLRFDOFXODWLRQDQGWRDOORZFRQVWUXFWLRQRIDEXLOGLQJZKLFKZRXOGH[FHHGWKH /DQGPDUN&RPPHUFLDOIRRW]RQLQJKHLJKWOLPLW7KHSURSRVHG)$5ZRXOGEH LISDUNLQJ
LVH[FOXGHGDQGLISDUNLQJLVLQFOXGHG7KHSURSRVHGEXLOGLQJZRXOGVWDQGDSSUR[LPDWHO\ IHHWLQFKHVWDOODSSUR[LPDWHO\IHHWKLJKHUWKDQWKHIRRW]RQLQJKHLJKWOLPLWRIWKH/& ]RQLQJ
7KHVLWHZRXOGHPSOR\DSSUR[LPDWHO\SHRSOHDQGKDYHDSSUR[LPDWHO\SDUNLQJVSDFHV $SSUR[LPDWHO\SDUNLQJVSDFHVZRXOGDOVREHSURYLGHGIRUELF\FOHV %XLOGLQJ6L]HDQG&KDUDFWHULVWLFV
7KHSURSRVHGSURMHFWZRXOGEHORFDWHGDSSUR[LPDWHO\QLQHIHHWDERYHPHDQVHDOHYHOIHDWXUH WZROHYHOVRIEHORZJUDGHSDUNLQJWZRDERYHJUDGHOHYHOVRISDUNLQJDQGIRXUXSSHUOHYHOVRI ODERUDWRU\RIILFHXVH7DEOHVXPPDUL]HVWKHEXLOGLQJVSDFHRIWKHSURSRVHGVWUXFWXUH 7KHVXEWHUUDQHDQSDUNLQJJDUDJHZRXOGH[WHQGDSSUR[LPDWHO\IHHWEHORZJUDGHZLWKHDFK OHYHOEHLQJIHHWWDOO7KHURRIRIWKHJDUDJHIRUWKHILUVWIORRUZRXOGEHDSSUR[LPDWHO\IHHW DERYHJUDGHZKLOHWKHVHFRQGOHYHORISDUNLQJDERYHJUDGHZRXOGEHDSSUR[LPDWHO\IHHW LQFKHVDERYHJUDGH
RUDSSUR[LPDWHO\IHHWLQFKHVDERYHWKHILUVWIORRU )ORRUVWKUHH
WKURXJKVL[ZRXOGEHXVHGIRUODERUDWRU\DQGRIILFHVSDFH)ORRUWKUHHZRXOGEHIHHWWDOO ZKLOHIORRUVIRXUWKURXJKVL[ZRXOGEHIHHWWDOO&ROOHFWLYHO\WKHVL[VWRU\EXLOGLQJZRXOGEH DSSUR[LPDWHO\IHHWLQFKHVWDOO
VHH)LJXUH±%XLOGLQJ(OHYDWLRQV
(OHYDWLQJWKHSRUWLRQV
RIWKHEXLOGLQJWKDWZRXOGEHRFFXSLHGE\WKHPDMRULW\RIWHQDQWVZRXOGKHOSSUHSDUHWKHVLWHLQ WKHHYHQWRIIORRGLQJGXHWRULVLQJVHDOHYHOVRUH[FHVVLYHUDLQIDOO
7KHURRIWRSSHQWKRXVHZRXOGH[WHQG

IHHWLQFKHVDERYHJURXQGOHYHO

8.a
November 14, 2022

Packet Pg. 213

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7DEOH
3URSRVHG%XLOGLQJ$UHD
)ORRU
)ORRU6SDFH
6TXDUH)HHW

/DERUDWRU\DQG
2IILFH6SDFH
*DUDJH$UHD
1RQ2FFXSLDEOH
6SDFH
*URVV)ORRU$UHD
8QGHUJURXQG
3

8QGHUJURXQG
3

$W*UDGH
3

/HYHO
3

/HYHO
/HYHO
/HYHO
/HYHO
6RXUFH
50:
6KHHW*

7KHEXLOGLQJ¶VPDLQOREE\ZRXOGEHORFDWHGDORQJWKHQRUWKHUQIDoDGHRQWKHILUVWIORRU DGURS
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
VRXWKHUQPRVWVWDLUZHOO
FORVHVWWRZKHUHWKHVRXWKERXQG+LJKZD\RIIUDPSFRQQHFWVWR +ROO\6WUHHW
7KHPDLQHOHFWULFDOURRPHPHUJHQF\HOHFWULFURRPILUHSXPSURRPGHOLYHUURRPWUDVKURRP DQGDELNHURRPZRXOGDOOEHORFDWHGRQWKHJURXQGIORRULQWKHQRUWKHDVWHUQSRUWLRQRIWKH EXLOGLQJ$OWKRXJKQRWDWWDFKHGWRWKHSURSRVHGVL[VWRU\VWUXFWXUHDJHQHUDWRUDQGORFDWLRQIRU \DUGHTXLSPHQWVWRUDJHZRXOGEHSUHVHQWHGLQWKHQRUWKHDVWHUQSRUWLRQRIWKHSURMHFWVLWH +HDWLQJDQG&RROLQJ6\VWHPV
+HDWLQJ6\VWHP
7KUHHHTXDOO\VL]HGKLJKHIILFLHQF\JDVILUHGFRQGHQVLQJERLOHUVZLWKDQRXWSXWRI WKRXVDQG%ULWLVKWKHUPDOXQLWV
0%+
ZRXOGEHORFDWHGLQDGHGLFDWHGERLOHUURRPZLWKLQWKH HQFORVHGSHQWKRXVHRQWKHURRI7KHZDWHUKHDWLQJV\VWHPZRXOGEHGHVLJQHGWRVXSSO\ZDWHU DWDWHPSHUDWXUHRIGHJUHHV)DKUHQKHLW
)
DQGUHWXUQZDWHUWHPSHUDWXUHRI)
7KUHHSULPDU\KHDWLQJZDWHUSXPSV
WZRRSHUDWLQJWRPHHWWKHORDGZLWKRQHRQVWDQGE\
ZRXOG
EHXVHGWRGHOLYHUKHDWHGZDWHUWRWKHKHDWLQJFRLOVWKURXJKRXWWKHEXLOGLQJ$QDLUVHSDUDWRU H[SDQVLRQWDQNDXWRPDWLFFKHPLFDOSRWIHHGHUVDIHW\UHOLHIYDOYHDQGPDNHXSZDWHU FRQQHFWLRQZRXOGEHSURYLGHGIRUWKHV\VWHP
2QHERLOHUDQGSXPSZRXOGEHFRQQHFWHGWRHPHUJHQF\VWDQGE\SRZHU 7KHIROORZLQJSURYLGHVDVXPPDU\RIWKHFHQWUDOSODQWKHDWLQJV\VWHP
x 7KUHH

KLJKHIILFLHQF\ 0%+FRQGHQVLQJERLOHUV

8.a
November 14, 2022

Packet Pg. 214

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
x 7KUHH

JDOORQSHUPLQXWH
*30
KHDWHGZDWHUSXPSVIRUG LVWULEXWLRQWKURXJKRXW
WKHEXLOGLQJ
&RROLQJ6\VWHP
7KHFKLOOHUSODQWZRXOGFRQVLVWRIWZR7RQZDWHUFRROHGHOHFWULFFHQWULIXJDOFKLOOHUVZLWK YDULDEOHVSHHGFRPSUHVVRUV7KHFKLOOHGZDWHUV\VWHPZRXOGEHGHVLJQHGIRUDVXSSO\ZDWHU WHPSHUDWXUHRI)DQGUHWXUQZDWHUWHPSHUDWXUHRI) 7KUHHSULPDU\FKLOOHGZDWHUSXPSV
WZRRSHUDWLQJWRPHHWWKHORDGDQGRQHRQVWDQGE\
ZRXOG
EHXVHGWRGHOLYHUFKLOOHGZDWHUWRWKHEXLOGLQJ$QDLUVHSDUDWRUH[SDQVLRQWDQNFKHPLFDOSRW IHHGHUVDIHW\UHOLHIYDOYHDQGPDNHXSZDWHUFRQQHFWLRQZRXOGEHSURYLGHGIRUWKHV\VWHP 7KHFRROLQJWRZHUVZRXOGEHORFDWHGRXWVLGHRIWKHFKLOOHUSODQWZLWKLQDQDUFKLWHFWXUDOVFUHHQLQJ HQFORVXUH7KHFRROLQJWRZHUVZRXOGEHSURYLGHGZLWKVWDLQOHVVVWHHOVXPSVDQGYDULDEOHVSHHG IDQV7KHFRROLQJWRZHUVZRXOGEHSLSHGLQWRWKHFHQWUDOSODQWZKHUHWKUHHFRQGHQVHUZDWHU SXPSV
WZRRSHUDWLQJWRPHHWWKHORDGZLWKRQHRQVWDQGE\
ZRXOGEHXVHGWRFLUFXODWHWKH
ZDWHUWKURXJKWKHFKLOOHUV$VLGHVWUHDPFKHPLFDOZDWHUWUHDWPHQWV\VWHPZRXOGEHSURYLGHG ZLWKWKLVV\VWHP
7KHIROORZLQJSURYLGHVDVXPPDU\RIWKHFHQWUDOSODQWFRROLQJV\VWHP
x 7ZR

7RQZDWHUFRROHGFKLOOHUV
x 7KUHH

*30FKLOOHGZDWHUSXPSVIRUGLVWULEXWLRQWKURXJK RXWWKHEXLOGLQJ x 7ZR

*30FURVVIORZFRROLQJWRZHUV
x 7KUHH

*30FRQGHQVHUZDWHUSXPSV
$UFKLWHFWXUDO'HVLJQ
7KHSURSRVHGEXLOGLQJZKLFKLVDSSUR[LPDWHO\¶´WDOOLVDVL[VWRU\VWUXFWXUHFRPSULVHGRI DIRXUVWRU\SULPDULO\FXUWDLQZDOOJODVV\EXLOGLQJWKDWVLWVRYHUWZROHYHOVRISDUNLQJVWUXFWXUH 7KHFXUWDLQZDOOV\VWHPWKDWFRPSULVHVWKHXSSHUIRXUVWRULHVRIWKHEXLOGLQJFRQVLVWVRID PL[WXUHRIJODUHLQKLELWLQJYLVLRQJODVVDQGFRUUHVSRQGLQJJUH\VSDQGUHOSDQHOVIRUWKHQRQ YLVLRQDUHDV7KHJODVV\SRUWLRQRIWKHFXUWDLQZDOOV\VWHPZRXOGEHGLVWLQJXLVKHGE\UDLVHG PXOOLRQFDSV7KHHDVWHUQDQGVRXWKHUQIDFDGHV
ZKLFKDUHSULPDULO\IUHHZD\IDFLQJ
ZRXOG
H[KLELWDJUHDWHUDPRXQWRIIORRUWRFHLOLQJYLVLRQJODVVDQGZRXOGLQWURGXFHUDLVHGYHUWLFDO PXOOLRQVDORQJWKHVWHSSHGIDoDGH7KHVRXWKHDVWFRUQHURIWKHXSSHUIORRUVZRXOGLQWURGXFHD IULWWHGJODVVSDWWHUQZKLFKZRXOGVHUYHDVDQDUWLVWLFHOHPHQWRIWKHEXLOGLQJ VHHPRUHRQWKH
DUWLVWLFHOHPHQWEHORZ

7KHQRUWKHUQDQGZHVWHUQIDFDGHVLQWURGXFHPRUHVSDQGUHOSDQHOVDQGOHVVYLVLRQJODVVZLWKLQ WKHVDPHFXUWDLQZDOOV\VWHPUHGXFLQJWKHDPRXQWRILQWHUQDOOLJKWIURPWKHEXLOGLQJDORQJWKH ³QHLJKERUKRRG´IDFDGHV7KHVHWZRIDFDGHVZRXOGDOVRLQFRUSRUDWHDXWRPDWHGZLQGRZVKDGHV WKDWGHVFHQGGXULQJWKHHYHQLQJDQGQLJKWWLPHKRXUV7KHRYHUDOOVFDOHRIWKHVHWZRIDFDGHV KDYHEHHQYLVXDOO\EURNHQGRZQLQWRVPDOOHUYHUWLFDOVHFWLRQV7KHVHVHFWLRQVDUHGLVWLQJXLVKHG E\DJUH\PHWDOWULPHOHPHQWWKDWKHOSVGHILQHWKHUDLVHGSDQHOVDQGDUDLVHGKRUL]RQWDOPXOOLRQ FDSLQRWKHU]RQHV
7KHVL[WKVWRU\RIWKHZHVWHUQIDoDGHZRXOGEHVWHSSHGEDFNLQWRWKHIRRWSULQWRIWKHEXLOGLQJ DQGWKHH[WHULRUVSDFHDFFRPPRGDWHGE\PRYLQJWKHZDOOEDFNZRXOGSURYLGHDQRXWGRRU SODQWHGWHUUDFHWKDWFRXOGEHDFFHVVHGIURPWKHVL[WKOHYHO7KHVL[WKIORRUZRXOGDOVRIHDWXUHD ZRRGDSSHDULQJDZQLQJDUFKLWHFWXUDOIHDWXUHVWKDWZRXOGGLIIHUHQWLDWHLWIURPWKHORZHUIORRUVRI
6SDQGUHOSDQHOVDUHWKHDUHDRIDFXUWDLQZDOORUVFUHHQORFDWHGEHWZHHQWKHYLVLRQDUHDVRIZLQGRZV ZKLFKFRQFHDOVWUXFWXUDOFROXPQVIORRUVODEVDQGVKHHUZDOOV 0XOOLRQFDSVDUHUDLVHGEDUVWKDWUXQEHWZHHQZLQGRZSDQHVDQGFDQVHUYHDVDWULPIRUWKHZLQGRZ

8.a
November 14, 2022

Packet Pg. 215

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
RFFXSLHGEXLOGLQJVSDFH7KHQRUWKHUQIDoDGHRIWKHEXLOGLQJZRXOGIHDWXUHUDLVHGKRUL]RQWDO PXOOLRQVLQWKHPLGGOHRIWKHIDoDGHGLUHFWO\RYHUWKHPDLQOREE\HQWUDQFHRIWKHEXLOGLQJ6HH )LJXUH±9LVXDO5HQGHULQJVIURP2IIVLWH/RFDWLRQVIRUYLVXDOUHQGHULQJVRIWKHSURSRVHG VWUXFWXUHIURPRIIVLWHORFDWLRQV
7KHSURMHFWSURSRVHVWRXVH*XDUGLDQ*ODVVZLWKD61;FRDWLQJ H[WHULRUYLVXDO

UHIOHFWDQFH
DQGDJODVVIULW]SDWWHUQRQWKHVRXWKHDVWFRUQHURIWKHEXLOGLQJ 50:
6KHHW
$
$GGLWLRQDOO\0LWLJDWLRQ0HDVXUH%,2ZRXOGUHTXLUHWKHSURMHFWWRUHGXFHWKHSRWHQWLDO IRUELUGVKLWWLQJWKHUHIOHFWLYHJODVVE\LQFRUSRUDWLQJWKHXVHRIJOD]LQJRUZLQGRZ FRDWLQJVPDUNLQJVWKDWUHGXFHELUGVWULNHKD]DUGFDXVHGE\WUDQVSDUHQF\UHIOHFWDQFHEODFN KROHRUSDVVDJHHIIHFWHWFVXFKDV*XDUGLDQ%LUGVWHWFKJODVVRUVLPLODU 7KHILUVWWZROHYHOVRIWKHEXLOGLQJZRXOGSULPDULO\EHFRPSULVHGRIWKHDERYHJUDGHSDUNLQJ VWUXFWXUHDQGWKHEXLOGLQJ¶VPDLQOREE\7KHDERYHJUDGHSDUNLQJWKDWZRXOGSULPDULO\FRPSULVH WKHILUVWWZROHYHOVRIWKHEXLOGLQJDUHJHQHUDOO\FKDUDFWHUL]HGE\YHUWLFDORIIZKLWHVTXDUH FRQFUHWHFROXPQVDQGWKHFRQFUHWHVWUXFWXUHRISDUNLQJJDUDJH7KHSDUNLQJJDUDJHZRXOG JHQHUDOO\EHOHIWRSHQWRWKHHQYLURQPHQWDVLGHIURPLQWHJUDWHGFDEOHUDLOLQJVWKDWZRXOGH[WHQG DURXQGWKHSHULPHWHURIWKHEXLOGLQJ7KHEXLOGLQJ¶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

LHQRWHQWLUHO\UHDFKLQJXSWREHWRSRIWKHVHFRQGOHYHO PDGHRIJUH\SDQHOVODLGRXWLQDQ
RIIVHWSDWWHUQ8WLOLW\URRPVZRXOGEHSUHVHQWLQWKHQRUWKHDVWHUQSRUWLRQRIWKHEXLOGLQJZKLFK ZRXOGEHSDUWLWLRQHGRIIWRSURYLGHVHFXULW\IRUWKHXWLOLW\ HJHOHFWULFDOGHOLYHU\WUDVKHWF

URRPVDQGWKHSRUWLRQRIWKHJDUDJHLQSUR[LPLW\RIWKHVRXWKHUQVWDLUZHOO 7KH$SSOLFDQWLVSURSRVLQJDIULW]SDWWHUQIRUWKHZLQGRZVDORQJWKHVRXWKHDVWHUQFRUQHURIWKH EXLOGLQJ7KLVGHVLJQHOHPHQWZRXOGEHEDFNOLWIURPWKHVWDLUZHOODQGRSHQRIILFHEHKLQGDQG ZRXOGVHUYHDVDSXEOLFDUWHOHPHQW6HH)LJXUH±9LVXDO5HQGHULQJVIURP2QVLWHDQG $GMDFHQW/RFDWLRQVIRUYLVXDOUHQGHULQJVRIWKHSURSRVHGVWUXFWXUHIURPRQVLWHORFDWLRQVDQG ORFDWLRQVLPPHGLDWHO\DGMDFHQWWRWKHSURMHFWVLWH
7KHSURMHFWSURSRVHVWRLQFOXGHLOOXPLQDWHGVLJQDJHRQWKHQRUWKHUQVRXWKHUQDQGHDVWHUQ IDFDGHVRIWKHEXLOGLQJDVZHOODVDPRQXPHQWVLJQRQ,QGXVWULDO5RDGDWVWUHHWOHYHO7KH VLJQDJHSODFHGRQWKHEXLOGLQJIDFDGHVZRXOGEHORFDWHGRQWKHVL[WKIORRU1RVLJQDJHLV SURSRVHGIRUWKHZHVWHUQVLGHRIWKHEXLOGLQJWKDWLVRULHQWHGWRWKHQHLJKERUKRRGWRWKHZHVW 6FUHHQLQJDQG/DQGVFDSLQJ
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

8.a
November 14, 2022

Packet Pg. 216

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
3URSRVHG2QVLWH6FUHHQLQJDQG/DQGVFDSLQJ
7KHSURSRVHGSURMHFWZRXOGLQFRUSRUDWHODQGVFDSLQJDQGIHQFHVDURXQGWKHSURMHFWVLWHWR SURYLGHDGGLWLRQDOVFUHHQLQJDQGSULYDF\(YHUJUHHQ
3LQH
WUHHVZRXOGEHSODQWHGDORQJWKH
QRUWKHUQDQGVRXWKHUQSRUWLRQVRIWKHVLWH7KHQRUWKHUQKDOIRIWKHZHVWHUQSURSHUW\OLQHZRXOG IHDWXUHDJUHHQHLJKWIRRWWDOOSULYDF\IHQFH7KHVRXWKHUQKDOIRIWKHZHVWHUQSURSHUW\OLQH ZRXOGIHDWXUHDVL[IRRWWDOOSULYDF\IHQFH(YHUJUHHQ (QJOLVK/DXUHO
WUHHVZRXOGDOVREH
SODQWHGDORQJWKHPDMRULW\RIWKHHLJKWIRRWWDOOSULYDF\IHQFH7ZR&DOLIRUQLD6\FDPRUHWUHHV ZRXOGEHSODQWHGDORQJWKHVRXWKHUQVLGHRIWKHSURMHFWGULYHZD\IURP,QGXVWULDO5RDG RQH
ZRXOGEHORFDWHGQHDUZKHUHWKHGULYHZD\WLHVLQWR,QGXVWULDO5RDGDQGWKHRWKHUZKHUHWKH PDLQGULYHZD\ZRXOGWUDQVLWLRQWRWKHRQVLWHVRXWKHUQGULYHLVOHSUHVHQWDORQJWKHEXLOGLQJ¶V ZHVWHUQIDoDGH*UDVVHVDQGVKUXEVZRXOGEHSODQWHGDORQJWKHSHULPHWHURIWKHVLWHDQG DURXQGWKHEXLOGLQJ$JUDVVVKUXELVODQGZRXOGEHORFDWHGRQWKHQRUWKZHVWHUQVLGHRIWKH EXLOGLQJEHWZHHQWKHGURSRIIDUHDDQGWKHRQVLWHGULYHLVOHWKDWUXQVDORQJWKHQRUWKHUQIDoDGH RIWKHEXLOGLQJ7KHVL[WKIORRUWHUUDFHRQZHVWHUQVLGHRIWKHEXLOGLQJZRXOGIHDWXUHWKUHHDQGD KDOIIRRWSUHIDEULFDWHGSODQWHUV7KHSUHIDEULFDWHGSODQWHUVZRXOGLQFOXGHGURXJKWWROHUDQW JUDVVHVVXFFXOHQWVDQGVKUXEV
3OHDVHVHH)LJXUH±*URXQG)ORRU/DQGVFDSH3ODQDQG)LJXUH ±5RRI7HUUDFH/DQGVFDSH
3ODQIRUWKHSURMHFW¶VSODQWLQJSODQDQGDYLVXDOGHSLFWLRQRIZKHUHWKHSULYDF\ZDOOVDQGIHQFHV ZRXOGEHFRQVWUXFWHG
3URSRVHG2IIVLWH6FUHHQLQJDQG/DQGVFDSLQJ
7KH$SSOLFDQWLVSURSRVLQJWRLQVWDOOQHZVWUHHWWUHHVRQWKHZHVWVLGHRI,QGXVWULDO5RDGDQG ODQGVFDSLQJDORQJWKHSURSRVHGSHGHVWULDQSDWKWKDWZRXOGFRQQHFWWKHSURMHFWVLWHWRWKH+ROO\ 6WUHHW,QGXVWULDO5RDGLQWHUVHFWLRQ7KH$SSOLFDQWZRXOGDOVRODQGVFDSHWKH&DOWUDQV¶VSURSHUW\ DWWKHFRUQHURI+ROO\6WUHHW,QGXVWULDO5RDG6HH)LJXUH±3URSRVHG,QGXVWULDO5RDG+ROO\ 6WUHHW,QWHUVHFWLRQ,PSURYHPHQWV
%XLOGLQJ:LQGRZ6FUHHQLQJ
7KHSURSRVHGEXLOGLQJZRXOGIHDWXUHDXWRPDWHGUROOHUVKDGHVIRUWKHZLQGRZVWKDWZRXOG GHVFHQGGXULQJWKHHYHQLQJDQGQLJKWWLPHKRXUVDQGUROOEDFNXSLQWKHPRUQLQJKRXUV6HH 6HFWLRQIRUDGHWDLOHGGLVFXVVLRQRIWKHUROOHUVKDGHVSURSRVHGDQGGHVLJQVSHFLILFDWLRQ UHTXLUHGE\PLWLJDWLRQ
6LWH$FFHVV3DUNLQJDQG&LUFXODWLRQ
7KHSURMHFWVLWHZRXOGFRQWLQXHWREHDFFHVVHGYLDWKH,QGXVWULDO5RDGGULYHZD\WKDWUXQV EHWZHHQWKH,Q12XWDQG6XWWHU+HDOWKSURSHUWLHV7KHGULYHZD\IURP,QGXVWULDO5RDGZRXOG UXQLQDQHDVWZHVWGLUHFWLRQDQGFRQQHFWWRRQVLWHGULYHLVOHV2QHRIWKHLVOHVZRXOGFRQWLQXH LQDQHDVWZHVWGLUHFWLRQDGMDFHQWWRWKHEXLOGLQJ¶VQRUWKHUQIDoDGHWRZDUGWKHJHQHUDWRU\DUG HTXLSPHQWVWRUDJHDUHDEHIRUHWXUQLQJWRWKHVRXWKZKHUHLWZRXOGSDUDOOHOWKHEXLOGLQJ¶V HDVWHUQIDoDGH7KHRWKHUGULYHLVOHDFFHVVLEOHIURPWKH,QGXVWULDO5RDGGULYHZD\ZRXOGSDUDOOHO WKHEXLOGLQJ¶VZHVWHUQIDoDGHEHIRUHWXUQLQJHDVWZKHUHLWZRXOGIRUPDORRSDURXQGWKHEXLOGLQJ $FFHVVWRJURXQGOHYHOSDUNLQJZRXOGEHSURYLGHGE\WKUHHGULYHLVOHVWKDWUXQLQDQRUWKVRXWK RULHQWDWLRQDQGFRQQHFWWRWKHGULYHLVOHRQWKHVRXWKHUQHQGRIWKHVLWH9HKLFXODUDFFHVVWR JURXQGOHYHOSDUNLQJZRXOGDOVREHSURYLGHGDWRQHORFDWLRQRQWKHQRUWKHUQHQGRIWKHEXLOGLQJ LPPHGLDWHO\ZHVWRIWKHXWLOLW\URRPV9HUWLFDODFFHVVWREHORZJUDGHSDUNLQJDQGWKHVHFRQG OHYHORISDUNLQJZRXOGEHSURYLGHGYLDDUDPSWKDWZRXOGEHFRQVWUXFWHGLQWKHHDVWHUQPRVW SDUNLQJGULYHLVOH
3HGHVWULDQDFFHVVWRWKHVLWHDQGEXLOGLQJZRXOGEHSURYLGHGIURP,QGXVWULDO5RDGYLDD VLGHZDONWKDWSDUDOOHOVWKH,QGXVWULDO5RDGGULYHZD\DGMDFHQWWRWKH,Q12XWSURSHUW\DQG SRVVLEO\RQWKHVRXWKHUQVLGHRIWKHVLWHYLDWKHSURSRVHGSHGHVWULDQSDWKZD\WKDWZRXOG

8.a
November 14, 2022

Packet Pg. 217

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
WUDYHUVHWKH&DOWUDQVULJKWRIZD\DQGFRQQHFWWKHVLWHWRWKH+ROO\6WUHHW,QGXVWULDO5RDG LQWHUVHFWLRQ7KHSDWKZD\ZRXOGEHVL[IHHWZLGHDQGFRQVLVWRIDEULGJH DORQJWKHHDVWHUQ
SRUWLRQRIDSDWKZD\
DQGFRQFUHWHZDONZD\
DORQJWKHZHVWHUQSRUWLRQRIWKHSDWKZD\

7ZRFURVVZDONVZRXOGEHSURYLGHGIRUSHGHVWULDQVRQWKHLQWHULRURIWKHVLWHSURYLGLQJDFFHVV DFURVVWKHVLWH¶VLQWHUQDOQRUWKVRXWKGULYHLVOHZHVWRIWKHEXLOGLQJDQGDFURVVWKHZHVWHUQ SRUWLRQRIWKHYHKLFXODUGURSRIIDUHDDGMDFHQWWRWKHEXLOGLQJ¶VPDLQHQWUDQFH 7KHSURSRVHGSURMHFWZRXOGSURYLGHDSSUR[LPDWHO\YHKLFXODUSDUNLQJVSDFHVZLWKQLQHRI WKRVHVSDFHVEHLQJGHVLJQDWHG$PHULFDQVZLWK'LVDELOLWLHV$FW $'$
DFFHVVLEOH$SSUR[LPDWHO\
SDUNLQJVSDFHVZRXOGEHSURYLGHGRQWKHVHFRQG

ERWWRPPRVW
IORRURIWKHVXEWHUUDQHDQ
SDUNLQJJDUDJHVSDFHVZRXOGEHSURYLGHGRQWKHILUVWIORRURIWKHVXEWHUUDQHDQSDUNLQJ JDUDJH
VSDFHVZRXOGEHSURYLGHGRQWKHJURXQGIORRUDQGVSDFHVZRXOGEHSURYLGHG RQWKHVHFRQGVWRU\RIWKHSDUNLQJJDUDJH$SSUR[LPDWHO\RIWKHVSDFHVSURYLGHGZRXOGEH IRUHOHFWULFYHKLFOHV
LQVWDOOHGZLWK/HYHOFKDUJLQJVWDWLRQV
DQGIRXURIWKHVSDFHVZRXOGEH
IRUPRWRUF\FOHV
$SSUR[LPDWHO\ELF\FOHSDUNLQJVSDFHVZRXOGEHSURYLGHGE\WKHSURMHFWLQFOXGLQJORQJ WHUPVSDFHVLQWKHELNHURRPORFDWHGDWJURXQGOHYHORQWKHHDVWHUQVLGHRIWKHEXLOGLQJ $FFHVVWRWKHEXLOGLQJZRXOGEHSURYLGHGDWWKUHHORFDWLRQV±WKURXJKWKHPDLQOREE\ZKLFK ZRXOGKDYHHOHYDWRUVDQGDVWDLUZHOO
WKURXJKWKHVRXWKHUQSRUWLRQRIWKHEXLOGLQJFORVHVWWRWKH SHGHVWULDQELF\FOHSDWK
DQGDQRWKHUHQWUDQFHLQWKHQRUWKHDVWHUQFRUQHURIWKHEXLOGLQJLQWKH VDPHDUHDDVWKHXWLOLW\URRPV7KHHOHYDWRULQWKHQRUWKHDVWHUQFRUQHURIEXLOGLQJLVHQYLVLRQHG DVEHLQJXVHGSULPDULO\IRUIUHLJKWSXUSRVHV
8WLOLWLHV
7KHSURMHFWZRXOGEHVHUYHGE\WKHH[LVWLQJXWLOLW\LQIUDVWUXFWXUHRQVLWHWKDWWLHLQWR,QGXVWULDO 5RDG
KRZHYHURQVLWHLPSURYHPHQWVZRXOGEHUHTXLUHGWRVXSSRUWWKHSURSRVHGVWUXFWXUH 8WLOLWLHVDWWKHVLWHZRXOGLQFOXGHSRWDEOHZDWHUVHUYLFHVDQLWDU\VHZHUVHUYLFHQDWXUDOJDVDQG HOHFWULFLW\DQGVWRUPZDWHUPDQDJHPHQW7KHIROORZLQJVXPPDUL]HVWKHXWLOLW\SURYLGHUVIRUWKH SURMHFWDQGLPSURYHPHQWVWKDWZRXOGQHHGWREHPDGHWRIDFLOLWDWHWKHSURMHFW6HH)LJXUH± 8WLOLWLHV3ODQIRUWKHSURSRVHGSURMHFW¶VXWLOLW\LQIUDVWUXFWXUHDQGFRQQHFWLRQV :DWHU6XSSO\
7KH0LG3HQLQVXOD:DWHU'LVWULFWSURYLGHVZDWHUVHUYLFHWRWKH&LW\RI6DQ&DUORVDQGZRXOG SURYLGHSRWDEOHZDWHUWRWKHSURMHFW,PSOHPHQWDWLRQRIWKHSURSRVHGSURMHFWZRXOGUHTXLUHWKH LQVWDOODWLRQLPSURYHPHQWVWRWKHZDWHUFRQQHFWLRQVDWDQGLQSUR[LPLW\RIWKHVLWH
x ([WHQG´ZDWHUPDLQRQWKHZH VWVLGHRI,QGXVWULDO5RDGIRUWKHDSSUR[LPDWHOHQJWKRI WKHSURMHFW¶VGULYHZD\
x ,QVWDOORQH´DQGRQH´ZDWHUOLQHVIURPWKHZDWHUPDLQRQ, QGXVWULDO5RDGLQWRWKH SURMHFWVLWH7KH´ZDWHUOLQHZRXOGEHXVHGIRUSRWDEOHZDWHUVHUYLFHWRWKHEXLOGLQJWKH ´ZDWHUOLQHZRXOGEHXVHGIRULUULJDWLRQSXUSRVHV
x ,QVWDOOWKUHHQHZILUHK\GUDQWV
o 2QHRQWKHQRUWKHUQVLGHRIWKHGULYHZD\ZKHUHWKHGULYHZD\WLHVLQWR,QGXVWULDO 5RDG
o 2QHRQWKHVRXWKHUQVLGHRIWKHEXLOGLQJQHDUWKHVWDLUZHOOHOHYDWRU o 2QHRQWKHHDVWHUQVLGHRIWKHEXLOGLQJQHDUWKHELNHURRP 6DQLWDU\6HZHU6HUYLFH
6DQLWDU\VHZHUVHUYLFHZRXOGEHSURYLGHGE\WKH&LW\RI6DQ&DUORVDQGWUHDWHGDWWKH6LOLFRQ 9DOOH\&OHDQ:DWHU7UHDWPHQW3ODQW,PSOHPHQWDWLRQRIWKHSURSRVHGSURMHFWZRXOGUHTXLUHWKH

8.a
November 14, 2022

Packet Pg. 218

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
LQVWDOODWLRQRIDQHZVDQLWDU\VHZHUPDQKROHLQWKHQRUWKERXQGODQHRI,QGXVWULDO5RDGDGMDFHQW WRWKHSURMHFW¶VGULYHZD\
(OHFWULFLW\DQG1DWXUDO*DV6HUYLFHV±,QFOXGLQJ(PHUJHQF\%DFNXS*HQHUDWRU (OHFWULFLW\DQGQDWXUDOJDVZRXOGEHSURYLGHGWRWKHSURMHFWVLWHE\3HQLQVXOD&OHDQ(QHUJ\

3&(
DQG3DFLILF*DVDQG(OHFWULF
3* (
UHVSHFWLYHO\3&(LV6DQ0DWHR&RXQW\¶V
&RPPXQLW\&KRLFH$JJUHJDWH
&&$
DFRPPXQLW\FRQWUROOHGQRWIRUSURILWMRLQWSRZHUV
DJHQF\3&(SURFXUHVWKHVRXUFHVRIHOHFWULFLW\WKURXJKRXW6DQ0DWHR&RXQW\ZKLOH3* ( PDQDJHVDQGPDLQWDLQVWKHHOHFWULFDOLQIUDVWUXFWXUHXVHGWRVXSSO\FRQVXPHUVZLWKHOHFWULFLW\ 7KHSURMHFWKDVEHHQDSSURYHGIRULWVQDWXUDOJDVH[HPSWLRQUHTXHVWXQGHUWKH&LW\¶V5HDFK &RGH6DQ&DUORV0XQLFLSDO&RGH6HFWLRQPHDQLQJWKDWLWZRXOGQRWEHDOOHOHFWULF 7KHEXLOGLQJZRXOGKDYHDQHPHUJHQF\VWDQGE\SRZHUV\VWHPWKDWLQFOXGHVDUDGLDWRUFRROHG GLHVHOIXHOHGHQJLQHJHQHUDWRUVHWUDWHGDW9ROWVSKDVHZLUH+HUW]DQG UHYROXWLRQVSHUPLQXWH7KHJHQHUDWRUVHWZRXOGEHORFDWHGLQWKHVHUYLFHDUHDLQWKH QRUWKHDVWHUQFRUQHURIWKHSURMHFWVLWHZLWKLQDZHDWKHUSURRIDQGDFRXVWLFDOHQFORVXUH7KH JHQHUDWRUZRXOGEHHTXLSSHGZLWKDGLHVHOSDUWLFXODWHILOWHU '3)
DQGPHHW86(3$7LHU
HPLVVLRQVWDQGDUGV$VLJQDOIURPDQ\DXWRPDWLFWUDQVIHUVZLWFKZRXOGVWDUWWKHHQJLQHDQG VXSSO\SRZHUWRWKHHPHUJHQF\GLVWULEXWLRQV\VWHPLQWKHHYHQWRIIDLOXUHRIWKHQRUPDOSRZHU VRXUFH7KHJHQHUDWRUZRXOGEHDXWRPDWLFDOO\UXQIRUDPLQXWHSHULRGWZLFHDPRQWK7KH IXHOVWRUDJHZRXOGEHDVXEEDVHPRXQWHGGXDOZDOOWDQN7KHIXHOFDSDFLW\ZRXOGDOORZIRUD PLQLPXPRIKRXUVRIUXQWLPHGXULQJDOLIHVDIHW\HYHQW'HGLFDWHGWUDQVIHUVZLWFKHVZRXOGEH UHTXLUHGIRUWKHWKUHHFODVVHVRIWKHJHQHUDWRUSRZHUV\VWHPDVUHTXLUHGE\FRGH$GHGLFDWHG HPHUJHQF\HOHFWULFDOURRPWRKRXVHWKHDXWRPDWLFWUDQVIHUVZLWFKHVDQGHPHUJHQF\GLVWULEXWLRQ HTXLSPHQWZRXOGEHORFDWHGRQWKHJURXQGIORRURIWKHEXLOGLQJ(OHFWULFDOOLQHVIURPWKH JHQHUDWRUWRWKHHPHUJHQF\GLVWULEXWLRQZRXOGEHORFDWHGXQGHUJURXQG 6WRUPZDWHU0DQDJHPHQW
7KHSURMHFWLVUHTXLUHGWRFRPSO\ZLWK6DQ0DWHR&RXQW\6WRUP:DWHU3ROOXWLRQ3UHYHQWLRQ 3URJUDP
6:333
&SURYLVLRQV±&RQVWUXFWLRQ6WRUPZDWHUEHVWPDQDJHPHQWSUDFWLFHV± DQGWKH&LW\RI6DQ&DUORV¶H[LVWLQJUHJXODWRU\UHTXLUHPHQWVLQFOXGLQJ&KDSWHU 6WRUPZDWHU0DQDJHPHQWDQG'LVFKDUJH&RQWUROZKLFKLVGHVLJQHGWRUHGXFHSROOXWDQWVLQ VWRUPZDWHUGLVFKDUJHVWRWKHPD[LPXPH[WHQWSUDFWLFDEOH$SURMHFWVSHFLILF6:333ZRXOGEH SUHSDUHGWRHQVXUHFRPSOLDQFHZLWKVWRUPZDWHUUXQRIIEHVWPDQDJHPHQWSUDFWLFHVGXULQJ FRQVWUXFWLRQ7RPHHW&UHTXLUHPHQWVVWRUPZDWHUUXQRIIIURPWKHVLWHZRXOGEHGLUHFWHGWRD VHULHVRIGUDLQDJHPDQDJHPHQWDUHDVELRUHWHQWLRQVZDOHVWKDWDOORZIRUWKHFOHDQVLQJDQG LQILOWUDWLRQRIVWRUPZDWHUEHIRUHGUDLQLQJWRWKH&LW\¶VVWRUPGUDLQV\VWHP 7KHSURMHFWZRXOGIHDWXUHSODQWHUDUHDV
IRUVWRUPZDWHUWUHDWPHQW
SULPDULO\RQWKHQRUWKVLGHRI
WKHEXLOGLQJEXWDOVRRQWKHHDVWHUQVRXWKHUQDQGZHVWHUQSURMHFWVLWHSHULPHWHUV VHH)LJXUH
±6WRUPZDWHU&RQWURO3ODQ
$GUDLQOLQHDORQJWKHSURMHFW¶VZHVWHUQDQGVRXWKHUQVLGHV ZRXOGWDNHWKHILOWHUHGZDWHUIURPWKHSODQWHUDUHDVDQGGLVFKDUJHLWWRWKHRSHQGUDLQDJH GLWFKHVDORQJWKHSURMHFW¶VVRXWKHUQERXQGDU\7KHFRQVWUXFWLRQRIWKHQHZSURSRVHGVWRUP GUDLQRXWIDOOZRXOGUHTXLUHSHUPLWVIURPUHJXODWRU\DJHQFLHV VHH6HFWLRQ

$VQRWHGSUHYLRXVO\WKHH[LVWLQJSURMHFWVLWHLVHQWLUHO\KDUGVFDSHG,PSOHPHQWDWLRQRIWKH SURSRVHGSURMHFWZRXOGLQFUHDVHWKHDPRXQWRISHUYLRXVDUHDRQWKHVLWHE\DSSUR[LPDWHO\
VTXDUHIHHW
7KHSURMHFWZRXOGDOVRUHTXLUHWKHLQVWDOODWLRQRI´39&SLSHDORQJWKHQRUWKHUQVLGHRIWKH SURMHFWVLWHDVZHOODVDVHULHVRIILYHQHZVWRUPGUDLQPDQKROHVRQWKHLQWHULRURIWKHVLWHWKDW JHQHUDOO\SDUDOOHOWKHEXLOGLQJ¶VZHVWHUQIDoDGH

8.a
November 14, 2022

Packet Pg. 219

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
3URMHFW&RQVWUXFWLRQ
&RQVWUXFWLRQRIWKHSURSRVHGSURMHFWLVDQWLFLSDWHGWRFRPPHQFHLQHDUO\WRPLGDQGODVW DSSUR[LPDWHO\PRQWKVEDVHGRQLQIRUPDWLRQSURYLGHGE\WKH$SSOLFDQW&RQVWUXFWLRQ DFWLYLWLHVZRXOGJHQHUDOO\HQWDLOGHPROLWLRQRIWKHH[LVWLQJDSSUR[LPDWHO\VTXDUHIRRW VHOIVWRUDJHIDFLOLW\JUDGLQJDQGH[FDYDWLRQRIWKHXQGHUJURXQGSDUNLQJVWUXFWXUH LQFOXGLQJRII
KDXORI
FXELF\DUGVRIILOODQGGHZDWHULQJRIWKHH[FDYDWHGDUHD FRQVWUXFWLRQRIEXLOGLQJ
IRXQGDWLRQVDQGWKHFRQFUHWHSDUNLQJOHYHOVFRQVWUXFWLRQRIWKHXSSHUOHYHOV RIILFHVODERUDWRULHVDQGLQWHULRUDQGILQLVKLQJZRUN
HJDUFKLWHFWXUDOFRDWLQJVDQG

ODQGVFDSLQJ

,WLVDQWLFLSDWHGWKDWWKHSURSRVHGSURMHFW¶VFRQVWUXFWLRQSKDVHVZRXOGWDNHWKHIROORZLQJ DPRXQWVRIWLPH

'HPROLWLRQ
0RQWK
*UDGLQJDQG([FDYDWLRQ
0RQWKV
)RXQGDWLRQ&RQVWUXFWLRQDQG&RQFUHWH3DUNLQJ/HYHOV 0RQWKV
&RQVWUXFWLRQRI8SSHU/HYHO2IILFHV/DERUDWRULHV
0RQWKV
%XLOGLQJ,QWHULRU)LQLVKLQJ
0RQWKV
7KHSURMHFW$SSOLFDQWDQWLFLSDWHVFRQVWUXFWLRQZRXOGUHTXLUHDSSUR[LPDWHO\GHZDWHULQJ ZHOOVSXPSVWRSUHYHQWWKHH[FDYDWHGDUHDIURPEHFRPLQJLQXQGDWHGZLWKZDWHU7KHSXPSHG ZDWHUZRXOGSDVVWKURXJKDILOWUDWLRQV\VWHPDQGWKHQEHGLVFKDUJHGLQWRWKHORFDOVWRUPGUDLQ V\VWHP
7KHEXLOGLQJZRXOGEHFRQVWUXFWHGRQDPDWVODEIRXQGDWLRQ WKHUHIRUHQRSLOHGULYLQJZRXOGEH
UHTXLUHGGXULQJFRQVWUXFWLRQ
7KHSURSRVHGSURMHFWZRXOGEHVXEMHFWWR&KDSWHURIWKH&LW\¶V0XQLFLSDO&RGH5HF\FOLQJ DQG'LYHUVLRQRI&RQVWUXFWLRQDQG'HPROLWLRQ'HEULVZKLFKSURYLGHVUHTXLUHPHQWVUHJDUGLQJ WKHSHUFHQWDJHRILQHUWPDWHULDOVJHQHUDWHGGXULQJGHPROLWLRQVDFWLYLWLHVWKDWPXVWEHGLYHUWHG IURPODQGILOOV
3URMHFW2SHUDWLRQ
7KHSURSRVHGGHYHORSPHQWLVDQWLFLSDWHGWREHFRPHRSHUDWLRQDOE\WKHHQGRI<HDU1R GHWDLOVUHJDUGLQJIXWXUHWHQDQWVDUHNQRZQDWWKLVWLPH KRZHYHUWKHSURSRVHGSURMHFWLV
DQWLFLSDWHGWRHPSOR\DSSUR[LPDWHO\SHRSOH7KHSURMHFWZRXOGEHVXEMHFWWRWKH&LW\¶V 7UDQVSRUWDWLRQ'HPDQG0DQDJHPHQW
7'0
RUGLQDQFH$IWHUFRPSOLDQFHZLWK7'0
UHTXLUHPHQWVWKHSURMHFWLVDQWLFLSDWHGWRJHQHUDWHDSSUR[LPDWHO\ JURVVWULSVSHUGD\RU
QHWWULSVSHUGD\DIWHUDFFRXQWLQJIRUWULSVWKDWDUHDOUHDG\JHQHUDWHGE\WKHH[LVWLQJODQG XVH
7KH$SSOLFDQWLQWHQGVWRDOORZSDUNLQJGXULQJQRQEXVLQHVVKRXUV LHDIWHU
300RQGD\
WKURXJK)ULGD\DVZHOODV6DWXUGD\VDQG6XQGD\V
WRSDWURQVRIWKH+RWHO,QGLJRIRUHYHQWV
KHOGDWWKDWVLWH7KLVDGGLWLRQDOSDUNLQJSURYLGHGDWWKH,QGXVWULDO5RDGSURMHFWVLWHLVPHDQW WRKHOSFRQVROLGDWHSDUNLQJLQWRDFHQWUDOL]HGORFDWLRQRXWVLGHRIWKHUHVLGHQWLDOQHLJKERUKRRG 7KHSDWKZD\SURSRVHGEHWZHHQWKHSURMHFWVLWHDQGWKH+ROO\6WUHHW,QGXVWULDO5RDG
$VGHVFULEHGLQ6HFWLRQRQHVRLOVDPSOHFROOHFWHGDWWKHVLWHH[KLELWHGDH[KLELWHGDFKURPLXP FRQFHQWUDWLRQRIPJNJDFRQFHQWUDWLRQWKDWLVDSSUR[LPDWHO\WLPHVWKHUHVSHFWLYHVROXEOHWKUHVKROG OLPLWFRQFHQWUDWLRQRIPLOOLJUDPVSHUOLWHU7KHUHIRUHVROXEOHFKURPLXPWHVWLQJZRXOGEHUHTXLUHGWR GHWHUPLQHWKHWUDQVSRUWDWLRQDQGGLVSRVDOFODVVLILFDWLRQRIUHSUHVHQWDWLYHVRLO 0LQRURYHUODSRIWKHFRQVWUXFWLRQSKDVHVOLVWHGDUHDQWLFLSDWHGWRRFFXU

8.a
November 14, 2022

Packet Pg. 220

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
LQWHUVHFWLRQZRXOGKHOSIDFLOLWDWHDFFHVVEHWZHHQWKH,QGXVWULDOVLWHSDUNLQJDQGWKH SURSRVHG+RWHO,QGLJR
352-(&7$&7,9,7,(6
7KHSURSRVHGSURMHFWZRXOGFRQVLVWRI

x 'HPROLVKLQJWKHH[LVWLQJDSSUR[LPDWHO\VTXDUHIRRWVHO IVWRUDJHIDFLOLW\RQVLWH
x ([FDYDWLQJDQGRIIKDXOLQJDSSUR[L PDWHO\
FXELF\DUGVRIVRLO

x ,QVWDOOLQJQHZXWLOLW\FRQQHFWLRQ VWRWKHSURMHFWVLWHIURP,QGXVWULDO5RDG
x &RQVWUXFWLRQRIDQHZDSSUR[L PDWHO\VTXDUHIRRWFRPPHUFLDOOLIHVFLHQFH

EXLOGLQJ

x ,QVWDOODWLRQRIELRUHWHQWLRQZDWHUWUHDWPHQWDUHDV
DQG
x /DQGVFDSLQJDQGLQVWDOO DWLRQRIOLJKWLQJ
&20081,7<%(1(),76
7KHSURSRVHGSURMHFWZRXOGSURYLGHDILQDQFLDOFRPPXQLW\EHQHILWFRQWULEXWLRQ7KHH[DFWXVDJH RIIXQGVZLOOEHGHWHUPLQHGE\WKH&LW\&RXQFLODQGPD\LQFOXGH/DXUHROD3DUNLPSURYHPHQWV DFTXLVLWLRQRIIXWXUHSDUNODQGIURPWKHKLJKVFKRROGLVWULFWWUDIILFLPSURYHPHQWVSURMHFWDQGRII VLWHLQIUDVWUXFWXUHLPSURYHPHQWV
&,7<&21',7,2162)$33529$/
7DEOHOLVWVWKH&RQGLWLRQVRI$SSURYDOWKDWZRXOGEHDSSOLHGWRWKHSURMHFWWKDWKHOSDYRLGRU UHGXFHSRWHQWLDOSURMHFWLPSDFWV
7DEOH
6WDQGDUG6SHFLILFDWLRQV$SSOLFDEOHWRWKH3URMHFW
5HVRXUFH$UHD7RSLF &RQGLWLRQRI$SSURYDO
$HVWKHWLFV 7KHGHVLJQDQGPDWHULDOVRIWKHEXLOGLQJVKDOOEHLQVXEVWDQWLDO FRPSOLDQFHZLWKWKHSODQVSUHSDUHGE\50:$UFKLWHFWXUHDQG ,QWHULRUVGDWHVWDPSHGFRQVLVWLQJRI
;;
VKHHWVDQGDV
SUHVHQWHGWRDQGDSSURYHGE\WKH3ODQQLQJ&RPPLVVLRQRQBBBBB $Q\FKDQJHVGHWHUPLQHGWREHVXEVWDQWLYHE\3ODQQLQJ6WDIIVKDOO UHTXLUHUHYLHZDQGDSSURYDOE\WKH3ODQQLQJ&RPPLVVLRQ $HVWKHWLFV/DQG8VH 7KLVSURMHFWZLOOUHTXLUHDEXLOGLQJSHUPLW&RQVWUXFWLRQRIWKLV SURMHFWVKDOOEHLQVWULFWFRQIRUPDQFHZLWKWKHSODQVDSSURYHGE\ WKH3ODQQLQJ&RPPLVVLRQRQ,IWKH%XLOGLQJ'LYLVLRQ¶VVHWRI GUDZLQJVRURWKHUVXEVHTXHQWUHYLVLRQVGLIIHUVVXEVWDQWLDOO\DV GHWHUPLQHGE\3ODQQLQJ6WDIIIURPWKHDSSURYHGGUDZLQJVWKH SURSRVDOVKDOOUHTXLUHUH
UHYLHZDQGDSSURYDOE\WKH3ODQQLQJ
&RPPLVVLRQSULRUWRFKDQJHVEHLQJPDGHLQWKHILHOG
$HVWKHWLFV 7KHFRORUVDQGPDWHULDOVRIWKHVWUXFWXUHDQGLPSURYHPHQWVVKDOO EHLQVXEVWDQWLDOFRPSOLDQFHZLWKWKRVHSUHVHQWHGDQGGHVFULEHG ZLWKLQWKHDSSOLFDWLRQPDWHULDOV$Q\FKDQJHVGHWHUPLQHGWREH VLJQLILFDQWDVGHWHUPLQHGE\WKH3ULQFLSDO3ODQQHUVKDOOEH UHYLHZHGDQGDSSURYHGE\WKH3ODQQLQJ&RPPLVVLRQ
$HVWKHWLFV 1HZVLJQVDUHVXEMHFWWRFRPSOLDQFHZLWK6DQ&DUORV0XQLFLSDO &RGH&KDSWHU1RVLJQVKDYH\HWEHHQDSSURYHGDVSDUWRI WKLVSURMHFW$Q\VLJQVWKDWDUHYLVLEOHIURP86+LJKZD\VKDOO UHTXLUHDSSURYDOE\WKH3ODQQLQJ&RPPLVVLRQ

8.a
November 14, 2022

Packet Pg. 221

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
5HVRXUFH$UHD7RSLF &RQGLWLRQRI$SSURYDO
$HVWKHWLFV $ILQDOH[WHULRUOLJKWLQJSODQZLWKVSHFLILFDWLRQVLQFRQIRUPDQFHZLWK WKHDSSURYHGSODQVLVVXEMHFWWRUHYLHZDQGDSSURYDOE\WKH 3ODQQLQJ'LYLVLRQSULRUWR%XLOGLQJ3HUPLWLVVXDQFH
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
7UDQVSRUWDWLRQ 7'0LPSOHPHQWDWLRQVKDOOFRPPHQFHRQFHRFFXSDQF\RIWKH EXLOGLQJDUULYHVDW
EDVHGRQVTXDUHIRRWDJH
RUD\HDUIURP
WKHLVVXDQFHRIWKH&HUWLILFDWHRI2FFXSDQF\ZKLFKHYHULVILUVW$ UHSRUWGRFXPHQWLQJWKH7'0DFWLYLWLHVXQGHUWDNHQDQGWKHLU UHVXOWVVKDOOEHVXEPLWWHGWRWKH'LUHFWRUDQQXDOO\DWWKH UHVSRQVLELOLW\RIWKHDSSOLFDQW$ILYH\HDUUHYLHZVKDOOHYDOXDWHWKH RYHUDOOHIIHFWLYHQHVVRIDOORIWKH7'0DFWLYLWLHVDQGPD\VXJJHVW QHZRUPRGLILHGDFWLYLWLHVRUVXEVWLWXWHDFWLYLWLHVWRPHHWWKH SURJUDP¶VREMHFWLYHVSHUWKH'LUHFWRU¶VUHYLHZDQGDSSURYDO7KH 'LUHFWRUPD\LPSRVHUHDVRQDEOHFKDQJHVWRDVVXUHWKHSURJUDP¶V REMHFWLYHVZLOOEHPHW7KHRZQHUDQGRUIXWXUHWHQDQWVVKDOOEH UHTXLUHGWRSD\IRUWKHFRVWVDVVRFLDWHGZLWKWKH&LW\UHYLHZRIWKH DQQXDODQGILYH\HDUUHYLHZUHSRUWV7KH7'0PHDVXUHRI SURYLGLQJWUDQVLWSDVVHVUHTXLUHVWHQDQWVWRSURYLGHWKHWUDQVLW SDVVHVWRDOOHPSOR\HHV

8.a
November 14, 2022

Packet Pg. 222

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
5HVRXUFH$UHD7RSLF &RQGLWLRQRI$SSURYDO
7UDQVSRUWDWLRQ ,ID7UDQVSRUWDWLRQ0DQDJHPHQW$VVRFLDWLRQ 70$
LVHVWDEOLVKHG
LQ6DQ&DUORVWKDWFDQVHUYHWKHSURMHFWVLWHWKHSURSHUW\RZQHU VKDOOSDUWLFLSDWHLQWKH70$7KHOHYHORIILQDQFLDOFRQWULEXWLRQRI WKHSDUWLFLSDQWVLQWKH70$VKDOOEHEDVHGRQDQHTXLWDEOH PHDVXUHVXFKDVVTXDUHIRRWDJH
RUVLPLODUPHWULF
DVDJUHHG
XSRQE\WKHSDUWLFLSDQWVDQGWKH&LW\
7UDQVSRUWDWLRQ 7KHRZQHUDQGRUIXWXUHWHQDQWVVKDOOEHUHVSRQVLEOHIRUVXSSO\LQJ 3ODQQLQJ6WDIIZLWKWKHFRQWDFWLQIRUPDWLRQIRUWKH'HVLJQDWHG7'0 &RQWDFWSHUVRQ
/DQG8VH
7UDQVSRUWDWLRQ
$SSOLFDQWVKDOOHQVXUHWKHUHLVVXIILFLHQWVLJKWGLVWDQFHDWWKH ,QGXVWULDO5RDGGULYHZD\SHU6DQ&DUORV0XQLFLSDO&RGH7KH $SSOLFDQWVKDOOSURYLGHDOOSURSRVHGSODQWLQJKHLJKWVDQGGLVWDQFHV IURPWKHGULYHZD\WRHQVXUHFRPSOLDQFHZLWK6DQ&DUORV0XQLFLSDO &RGHDWWKHWLPHRI%XLOGLQJ3HUPLWVXEPLWWDO
1RLVH &RQVWUXFWLRQ$FWLYLWLHVVKDOOFRPSO\ZLWKWKH&LW\¶VQRLVHRUGLQDQFH +\GURORJ\ :KHQHYHUIHDVLEOHSURMHFWVKDOOLQFRUSRUDWHODQGVFDSLQJWKDW PLQLPL]HVLUULJDWLRQDQGUXQRIISURPRWHVVXUIDFHLQILOWUDWLRQ PLQLPL]HVWKHXVHRISHVWLFLGHVDQGIHUWLOL]HUVDQGLQFRUSRUDWHV RWKHUDSSURSULDWHVXVWDLQDEOHODQGVFDSLQJSUDFWLFHVVXFKDV%D\ )ULHQGO\/DQGVFDSLQJ
%LRORJ\ 7RHQVXUHWKDWSURMHFWDFWLYLWLHVFRPSO\ZLWKWKH0LJUDWRU\%LUG 7UHDW\$FWDQG&DOLIRUQLD)LVKDQG*DPH&RGHWKHIROORZLQJ PHDVXUHVVKDOOEHLPSOHPHQWHG

D 7RWKHH[WHQWIHDVLEOHFRQVWUXFWLRQDFWLYLWLHVVKRXOGEH VFKHGXOHGWRDYRLGWKHQHVWLQJVHDVRQ,IFRQVWUXFWLRQ DFWLYLWLHVDUHVFKHGXOHGWRWDNHSODFHRXWVLGHWKHQHVWLQJ VHDVRQDOOLPSDFWVWRQHVWLQJELUGVSURWHFWHGXQGHUWKH 0%7$DQG&DOLIRUQLD)LVKDQG*DPH&RGHZLOOEH
DYRLGHG7KHQHVWLQJVHDVRQIRUPRVWELUGVLQ6DQ&DUORV H[WHQGVIURP)HEUXDU\WKURXJK$XJXVW
E ,ILWLVQRWSRVVLEOHWRVFKHGXOHFRQVWUXFWLRQDFWLYLWLHV EHWZHHQ6HSWHPEHUDQG-DQXDU\WKHQSUH
FRQVWUXFWLRQVXUYH\VIRUQHVWLQJELUGVVKRXOGEHFRQGXFWHG E\DTXDOLILHGELRORJLVWWRHQVXUHWKDWQRQHVWVZLOOEH GLVWXUEHGGXULQJSURMHFWLPSOHPHQWDW
LRQ7KHVHVXUYH\V
VKDOOEHFRQGXFWHGQRPRUHWKDQVHYHQGD\VSULRUWRWKH LQLWLDWLRQRIFRQVWUXFWLRQDFWLYLWLHV'XULQJWKLVVXUYH\WKH ELRORJLVWZLOOLQVSHFWDOOWUHHVDQGRWKHUSRWHQWLDOQHVWLQJ KDELWDWV
HJVKUXEVUXGHUDOJUDVVODQGVDQGEXLOGLQJV
LQ
DQGLPPHGLDWHO\DGMDFHQWWRWKHLPSDFWDUHDVIRUQHVWV,I DQDFWLYHQHVWLVIRXQGVXIILFLHQWO\FORVHWRZRUNDUHDVWR EHGLVWXUEHGE\WKHVHDFWLYLWLHVWKHELRORJLVWZLOOGHWHUPLQH WKHH[WHQWRIDFRQVWUXFWLRQIUHHEXIIHU]RQHWREH
HVWDEOLVKHGDURXQGWKHQHVW
W\SLFDOO\IWIRUUDSWRUVDQG
IWIRURWKHUVSHFLHVDVUHFRPPHQGHGE\WKH&DOLIRUQLD 'HSDUWPHQWRI)LVKDQG:LOGOLIH
WRHQVXUHWKDWQRQHVWV
RIVSHFLHVSURWHFWHGE\WKH0LJUDWRU\%LUG7UHDW\$FWDQG

8.a
November 14, 2022

Packet Pg. 223

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
5HVRXUFH$UHD7RSLF &RQGLWLRQRI$SSURYDO
&DOLIRUQLD)LVKDQG*DPH&RGHZLOOEHGLVWXUEHGGXULQJ SURMHFWLPSOHPHQWDWLRQ
F ,IFRQVWUXFWLRQDFWLYLWLHVZLOOQRWEHLQLWLDWHGXQWLODIWHUWKH VWDUWRIWKHQHVWLQJVHDVRQDOOSRWHQWLDOQHVWLQJVXEVWUDWHV

HJEXVKHVWUHHVJUDVVHVDQGRWKHUYHJHWDWLRQ
WKDW
DUHVFKHGXOHGWREHUHPRYHGE\WKH3URMHFWEHUHPRYHG
SULRUWRWKHVWDUWRIWKHQHVWLQJVHDVRQ
HJSULRUWR
)HEUXDU\
7KLVZLOOSUHFOXGHWKHLQLWLDWLRQRIQHVWVLQWKLV
YHJHWDWLRQDQGSUHYHQWWKHSRWHQWLDOGHOD\RIWKH3URMHFW GXHWRWKHSUHVHQFHRIDFWLYHQHVWVLQWKHVHVXEVWUDWHV *UHHQKRXVH*DV
(PLVVLRQV(QHUJ\
8WLOLWLHV

5HYLHZRIWKHSODQVZDVEDVHGRQWKH
&DOLIRUQLD%XLOGLQJ
0HFKDQLFDO3OXPELQJDQG(OHFWULFDO&RGHV
LH,%&80&
83&DQG1(&DVDPHQGHGE\WKH6WDWHRI&DOLIRUQLD

&DOLIRUQLD*UHHQ%XLOGLQJ6WDQGDUGV&RGHDQG
&DOLIRUQLD
(QHUJ\&RGH6XEPLWWDORISODQVIRUEXLOGLQJSHUPLWZLOOEHVXEMHFW WRWKHEXLOGLQJFRGHVLQHIIHFWDWWKHWLPHRIVXEPLWWDO *UHHQKRXVH*DV
(PLVVLRQV(QHUJ\
8WLOLWLHV

7KHDSSOLFDQWVKDOOFRPSO\ZLWKDOOUHTXLUHPHQWVRIWKH%XLOGLQJ 'LYLVLRQLQFOXGLQJEXWQRWOLPLWHGWRWKHIROORZLQJ

D &RPSOHWHDUFKLWHFWXUDOPHFKDQLFDOHOHFWULFDOSOXPELQJ DQG7
HQHUJ\
SODQVUHTXLUHG
E 6KRZFRPSOLDQFHZLWKDOO&$/*UHHQUHTXLUHPHQWV
F $WWLPHRIFRQVWUXFWLRQMREVLJQVKDOOEHSURYLGHGWKDW LQFOXGHVFRQWDFWLQIRUPDWLRQRIFRQWUDFWRUDQGSRVWHG
FRQVWUXFWLRQZRUNKRXUVSHU&LW\2UGLQDQFH
$LU4XDOLW\ 7KHSURMHFWVKDOOLPSOHPHQW%$$40'¶V&RQVWUXFWLRQ)XJLWLYH'XVW %HVW0DQDJHPHQW3UDFWLFHVDQGVKDOOSURYLGHQRWHVRQWKHSODQV VXEPLWWHGWRWKH%XLOGLQJ'LYLVLRQIRUSHUPLWV
+\GURORJ\ 7KLVSURMHFWLVORFDWHGZLWKLQ)(0$IORRG]RQH$(DQGVKDOO FRPSO\ZLWKDOODSSOLFDEOHUHTXLUHPHQWVRI6DQ&DUORV0XQLFLSDO &RGH6HFWLRQ
+\GURORJ\ 7RFRPSO\ZLWKWKH&LW\¶VSROLF\WKHDSSOLFDQW¶VFLYLOHQJLQHHUPXVW VXEPLWDGUDLQDJHUHSRUWK\GURORJLFVWXG\K\GUDXOLFFDOFXODWLRQV DQGGUDLQDJHLPSURYHPHQWSODQV'UDLQDJHV\VWHPVWKDWDUH GHVLJQHGWRUHO\RQSXPSVDUHQRWDOORZHG6WRUPZDWHUVKDOO XQGHUQRFLUFXPVWDQFHVEHLQWURGXFHGLQWRWKHVDQLWDU\VHZDJH V\VWHPEXWVKDOOEHFRQILQHGWRVXUIDFHDQGVXEVXUIDFHGUDLQDJH IDFLOLWLHVSURYLGHG$SSOLFDQWPXVWSURYLGHSUHLPSURYHPHQWUXQRII DQGSRVWLPSURYHPHQWUXQRIIFDOFXODWLRQV3RVWLPSURYHPHQW UXQRIIWRWDOVFDQQRWH[FHHGSUHLPSURYHPHQWUXQRIIWRWDOV 5(48,5('$33529$/6
'HYHORSPHQWRIWKHSURMHFWZRXOGUHTXLUHWKHIROORZLQJDSSURYDOVIURPWKH&LW\RI6DQ&DUORV
x 'HVLJQ5HYLHZ
x 3ODQQHG'HYHORSPHQW=RQLQJDQG 3ODQQHG'HYHORSPHQW3HUPLW x 7UDQVSRUWDWLRQ'HPDQG0DQDJHPHQW3ODQ
x *UDGLQJDQG'LUW+DXO
x &LW\(QFURDFKPHQW3HUPLW

8.a
November 14, 2022

Packet Pg. 224

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHSURMHFWLVUHTXLUHGWRFRPSO\ZLWK&SURYLVLRQV±&RQVWUXFWLRQ6WRUPZDWHUEHVW PDQDJHPHQWSUDFWLFHV±DQGWKH&LW\RI6DQ&DUORV¶H[LVWLQJUHJXODWRU\UHTXLUHPHQWVLQFOXGLQJ &KDSWHU6WRUPZDWHU0DQDJHPHQWDQG'LVFKDUJH&RQWUROZKLFKLVGHVLJQHGWRUHGXFH SROOXWDQWVLQVWRUPZDWHUGLVFKDUJHVWRWKHPD[LPXPH[WHQWSUDFWLFDEOH 7KHSURMHFWZRXOGDOVRUHTXLUHWKHIROORZLQJSHUPLWVIURPRWKHUUHJXODWRU\DJHQFLHVIRU FRQVWUXFWLRQDFWLYLWLHVLQFOXGLQJWKDWRIWKHSRWHQWLDOSHGHVWULDQEULGJHWKDWZRXOGEHORFDWHG ZLWKLQ&DOWUDQVULJKWRIZD\

x &DOWUDQV(QFURDFKPHQW3HUPLW
x %D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW3HUPLWWR2SHUDWH x /DNHDQG6WUHDPEHG$OWHUD WLRQ$JUHHPHQWIURP&DOLIRUQLD'HSDUWPHQWRI)LVKDQG :LOGOLIH
x *HQHUDO&RQVWUXFWLRQ3HUPLWIURPWKH5HJLRQDO:DWHU4XDOLW\&R QWURO%RDUG x :DWHU4XDOLW\&HUWLILFDWLRQIURPWKH5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG x 3HUPLWIURP8QLWHG6WDWHV$UP\&RUHRI(QJLQHHUV

8.a
November 14, 2022

Packet Pg. 225

^_
=
?6KDUHG?6DQ -RVH?(QY?BB6DQ &DUORV ,QGXVWULDO 5G &(4$?*,6?0;'?3URMHFWB/RFDWLRQBBP[G 6RXUFH
(65,
0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW

0LOHV
K
)LJXUH5HJLRQDO/RFDWLRQ
)UHPRQW
+D\ZDUG
3DOR$OWR
5HGZRRG&LW\
6DQ)UDQFLVFR
6DQ0DWHR
'DO\&LW\
0RXQWDLQ9LHZ
6DQ-RVH
2DNODQG
6DQ&DUORV
6DQ%UXQR
^_ 3URMHFW/RFDWLRQ

8.a
November 14, 2022

Packet Pg. 226

+ROO\6WUHHW
,QGXVWULDO5RDG
%D\VKRUH):<

=
?6KDUHG?6DQ -RVH?(QY?BB6DQ &DUORV ,QGXVWULDO 5G &(4$?*,6?0;'?)LJXUHB3URMHFWB9LFLQLW\BBP[G 6RXUFH
(65,
0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW

)HHW
K
)LJXUH3URMHFW9LFLQLW\
3URMHFW%RXQGDU\
2IIVLWH3HGHVWULDQ,PSURYHPHQWVLQ&DOWUDQV5LJKWRI:D\

8.a
November 14, 2022

Packet Pg. 227

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
)LJXUH±([LVWLQJ6LWH3KRWRV

7RS±9LHZRIWKHSURMHFWVLWHIURPWKH,QGXVWULDO5RDGGULYHZD\ SKRWRWDNHQZHVWRIWKHSURMHFW
VLWHORRNLQJHDVW

%RWWRP±9LHZRIWKHSURMHFWVLWH¶VZHVWHUQSURSHUW\OLQH6LQJOHVWRU\EXLOGLQJVKRZQLQEDFN

LHQRW,Q12XW
LVWKHVWRUDJHEXLOGLQJWKDWLVFRQVWUXFWHGDORQJWKHSURMHFWVLWH¶VZHVWHUQ ERXQGDU\
SKRWRWDNHQZHVWRIWKHSURMHFWVLWHORRNLQJHDVW

8.a
November 14, 2022

Packet Pg. 228

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
)LJXUH±([LVWLQJ6LWH3KRWRV
&RQWLQXHG

7RS±9LHZRIWKHSURMHFWVLWHIURPWKHVRXWKZHVWHUQFRUQHURIWKH,QGXVWULDO5RDG+ROO\6WUHHW LQWHUVHFWLRQ7KHSURMHFWVLWHLVSULPDULO\VFUHHQHGE\WUHHVIURQWLQJ+ROO\6WUHHW SKRWRWDNHQ
VRXWKRISURMHFWVLWHORRNLQJQRUWK

%RWWRP±9LHZRISURMHFWVLWHIURP+ROO\6WUHHW+LJKZD\RYHUSDVV*UH\EXLOGLQJLQ IRUHJURXQGFRPSULVHVWKHVRXWKHDVWHUQEXLOGLQJRQWKHVLWH SKRWRWDNHQHDVWRISURMHFWVLWH
ORRNLQJZHVW

8.a
November 14, 2022

Packet Pg. 229

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
)LJXUH±([LVWLQJ6LWH3KRWRV
&RQWLQXHG

7RS±9LHZRIWKHSURMHFWVLWHIURPWKH6XWWHU+HDOWKSURSHUW\QRUWKRIWKHVLWHORRNLQJVRXWK %RWWRP±9LHZRIWKH&DOWUDQVULJKWRIZD\DQGWKHGUDLQDJHRQWKHVRXWKZHVWFRUQHURIWKHVLWH

LHZKHUHWKHZDWHULVSRROHG

SKRWRWDNHQORRNLQJZHVW

8.a
November 14, 2022

Packet Pg. 230

3URMHFW'HVFULSWLRQ 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
)LJXUH±([LVWLQJ6LWH3KRWRV
&RQWLQXHG

7RS±9LHZRIWKHRQVLWHGUDLQDJH
VHHGUDLQDJHIURPVLWHOHIWRIWKHWUHHRQWKHIDUVLGHEDQN
DQG&DOWUDQVULJKWRIZD\WRWKHULJKWRIWKHWUHH
SKRWRWDNHQORRNLQJHDVWQRUWKHDVW

%RWWRP±9LHZRIWKH&DOWUDQVULJKWRIZD\DQGGUDLQDJHVRXWKRIWKHVLWHDQGQRUWKRI+ROO\ 6WUHHW
SKRWRWDNHQORRNLQJHDVW

8.a
November 14, 2022

Packet Pg. 231

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH3URSRVHG6LWH3ODQ
6RXUFH
0HQOR(TXLWLHV

8.a
November 14, 2022

Packet Pg. 232

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH%XLOGLQJ(OHYDWLRQV

8.a
November 14, 2022

Packet Pg. 233

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH9LVXDO5HQGHULQJVIURP2II6LWH/RFDWLRQV

8.a
November 14, 2022

Packet Pg. 234

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH9LVXDO5HQGHULQJVIURP2QVLWHDQG$GMDFHQW/RFDWLRQV 9LHZIURP,QGXVWULDO5RDG+ROO\6WUHHW,QWHUVHFWLRQ 9LHZIURP,QGXVWULDO5RDG(DVWHUQ'ULYHZD\ 9LHZRI0DLQ(QWUDQFH
%XLOGLQJ
V1RUWKZHVW&RUQHU
9LHZ/RRNLQJ:HVWIURP+ROO\6WUHHW6%2IIUDPS,QWHUVHFWLRQ

8.a
November 14, 2022

Packet Pg. 235

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH*URXQG)ORRU/DQGVFDSH3ODQ

8.a
November 14, 2022

Packet Pg. 236

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH
5RRI7HUUDFH/DQGVFDSH3ODQ

8.a
November 14, 2022

Packet Pg. 237

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH3URSRVHG,QGXVWULDO5RDG+ROO\6WUHHW,QWHUVHFWLRQ,PSURYHPHQWV

8.a
November 14, 2022

Packet Pg. 238

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH8WLOLWLHV3ODQ

8.a
November 14, 2022

Packet Pg. 239

6RXUFH
50:0RGLILHGE\0,*
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
)LJXUH6WRUPZDWHU&RQWURO3ODQ

8.a
November 14, 2022

Packet Pg. 240

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&KDSWHU(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV
3URMHFW7LWOH
,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW
/HDG$JHQF\1DPHDQG$GGUHVV
&LW\RI6DQ&DUORV
(OP6WUHHW6DQ&DUORV&$

&RQWDFW3HUVRQDQG3KRQH1XPEHU
/LVD&RVWD6DQGHUV3ULQFLSDO3ODQQHU

3URMHFW/RFDWLRQ
,QGXVWULDO5RDG6DQ&DUORV&$
3URMHFW6SRQVRU¶V1DPHDQG$GGUHVV
-DQH9DXJKDQ0HQOR(TXLWLHV,QF6DQG
+LOO5RDG0HQOR3DUN&$

*HQHUDO3ODQ'HVLJQDWLRQ
*HQHUDO&RPPHUFLDO,QGXVWULDO
*&,

=RQLQJ
*HQHUDO&RPPHUFLDO,QGXVWULDO
*&,

'HVFULSWLRQRIWKH3URMHFW
7KHSURSRVHGSURMHFWFRQVLVWVRIGHYHORSLQJDQHZ
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
LISDUNLQJLVH[FOXGHGDQGLISDUNLQJLV
LQFOXGHG7KHSURSRVHGEXLOGLQJZRXOGVWDQGDSSUR[LPDWHO\IHHWLQFKHVWDOO DSSUR[LPDWHO\IHHWKLJKHUWKDQWKHIRRW]RQLQJKHLJKWOLPLW7KHSURSRVHGSURMHFW ZRXOGSURYLGHDSSUR[LPDWHO\YHKLFXODUSDUNLQJVSDFHVZLWKQLQHRIWKRVHVSDFHV EHLQJGHVLJQDWHG$PHULFDQVZLWK'LVDELOLWLHV$FW
$'$
DFFHVVLEOH7KHSURSRVHGSURMHFW
LVDVSHFXODWLYHGHYHORSPHQWZLWKQRNQRZQWHQDQWVDWWKLVWLPH KRZHYHURQFHRFFXSLHG
LWLVDQWLFLSDWHGWRSURYLGHHPSOR\PHQWIRUDSSUR[LPDWHO\SHRSOH

6XUURXQGLQJ/DQG8VHVDQG6HWWLQJ
$GMDFHQWODQGXVHVFRQVLVWRIPHGLFDOIDFLOLW\DQG
LWVDVVRFLDWHGSDUNLQJJDUDJHWRWKHQRUWK
DIDVWIRRGUHVWDXUDQWWRWKHZHVWDQGVLQJOH
IDPLO\UHVLGHQWLDOGZHOOLQJXQLWVIXUWKHUEH\RQGWKDWDFURVV,QGXVWULDO5RDG FRPPHUFLDO
OLJKWLQGXVWULDOODQGXVHVWRWKHVRXWK
DQG86+LJKZD\WRWKHHDVW7KH6DQ&DUORV
$LUSRUWLVORFDWHGIXUWKHUHDVWRIWKHSURMHFWVLWHDFURVVWKH86+LJKZD\IUHHZD\ 2WKHU3XEOLF$JHQFLHV:KRVH$SSURYDOLV5HTXLUHG
7KHSURMHFWUHTXLUHD&DOWUDQV
(QFURDFKPHQW3HUPLWIRUFRQVWUXFWLRQRISHGHVWULDQLPSURYHPHQWVZLWKLQ&DOWUDQVULJKWRI ZD\VRXWKZHVWRIWKHVLWH7KHSURMHFWPD\DOVRUHTXLUHSHUPLWVIURP&'): /DNH
DQG6WUHDPEHG$OWHUDWLRQ$JUHHPHQW
5:&%DQGDSHUPLWIURP86$&(
+DYH&DOLIRUQLD1DWLYH$PHULFD QWULEHVWUDGLWLRQDOO\DQGFXOWXUDOO\DIILOLDWHGZLWKWKH SURMHFWDUHDUHTXHVWHGFRQVXOWDWLRQSXUVXDQWWR3XEOLF5HVRXUFHV&RGHVHFWLRQ ",IVRLVWKHUHDSODQIRUFRQVXOWDWLRQWKDWLQFOXGHVIRUH[DPSOHWKH GHWHUPLQDWLRQRIVLJQLILFDQFHRILPSDFWVWRWULEDOFXOWXUDOUHVRXUFHVSURFHGXUHV UHJDUGLQJFRQILGHQWLDOLW\HWF"7KH&LW\RI6DQ&DUORVKDVQRWUHFHLYHGDQ\UHTXHVWV IURPD1DWLYH$PHULFDQWULEHWUDGLWLRQDOO\DQGFXOWXUDOO\DIILOLDWHGZLWKWKHSURMHFWDUHD 7KXVQRFRQVXOWDWLRQKDVEHHQFRQGXFWHG

8.a
November 14, 2022

Packet Pg. 241

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
(19,5210(17$/)$&7256327(17,$//<$))(&7('
7KHHQYLURQPHQWDOIDFWRUVFKHFNHGEHORZZRXOGEHSRWHQWLDOO\DIIHFWHGE\WKLVSURMHFWDV LQGLFDWHGE\WKHFKHFNOLVWRQWKHIROORZLQJSDJHV
$HVWKHWLFV *UHHQKRXVH*DV
(PLVVLRQV 3XEOLF6HUYLFHV
$JULFXOWXUDODQG
)RUHVWU\5HVRXUFHV +D]DUGVDQG+D]DUGRXV
0DWHULDOV 5HFUHDWLRQ
$LU4XDOLW\ +\GURORJ\:DWHU4XDOLW\ 7UDQVSRUWDWLRQ %LRORJLFDO5HVRXUFHV /DQG8VH3ODQQLQJ 7ULEDO&XOWXUDO 5HVRXUFHV
&XOWXUDO5HVRXUFHV 0LQHUDO5HVRXUFHV 8WLOLWLHV6HUYLFH6\VWHPV (QHUJ\ 1RLVH :LOGILUH
*HRORJ\6RLOV 3RSXODWLRQ+RXVLQJ 0DQGDWRU\)LQGLQJVRI 6LJQLILFDQFH

8.a
November 14, 2022

Packet Pg. 242

*
$" '
-
,&
&- -

$$$
"$#$"$
$
#$
7E>.)E&%=/=E8*E>./=E/70>0%2E)A%2@%>/87E
E*/7(E>.%>E>.)E9<898=)(E;81)'>E EE.%A)E%E=/-70*/'%7>E),)'>E87E>.)E )7A/;876)7>E%7(E%E
!E

EB023E&)E9;)9%;)(E
-
$E E*/7(E>.%>E%2>[email protected]>.)E9<898=)(E<81)'>E E.%A)E%E=/-70*/'%7>E)*+)'>E87E>.)E )7A/;876)7>E>.)<)E"EE&)E%E=/-70*/'%7>E),)'>E07E>./=E'%=)E&)'%@=)E<)A0=/87=E07E >.)E<81)'>E.%A)E&))7E6%()E&CE8;E%-;))(E>8E&CE>.)E<81)'>E9;8987)7> EEE
!E
EB/23E&)E9<)9%;)(E
E*/7(E>.%>E>.)E9<898=)(E;81)'>E#E.%A)E%E=/-7/*0'%7>E)*+)'>E87E>.)E)7A/;876)7>E %7(E%7E!
EE

E0=E;):@/<)( E
E*/7(E>.%>E>.)E9;898=)(E;81)'>E#E.%A)E%E98>)7>0%22CE=/-70*0'%7>E069%'>E8;E 98>)7>0%22CE=0-7/*0'%7>E@73)==E6/>0-%>)(E/69%'>E87E>.)E)7A/<876)7>E&@>E%>E2)%=>E87)E )*+)'>E
E.%=E&))7E%():@%>)3CE%7%2CD)(E/7E%7E)%<20);E(8'@6)7>E9@;=@%7>E>8E%992/'%&3)E 3)-%3E=>%7(%;(=E%7(E
E.%=E&))7E%((;)==)(E&CE6/>/-%>087E6)%=@;)=E&%=)(E87E>.)E )%<2/);E%7%3C=/=E%=E()=';/&)(E87E%>>%'.)(E=.))>=E7E!
E
E

E/=E;):@/;)(E&@>E/>E6@=>E%7%2CD)E874CE>.)E)*+)'>=E>.%>E<)6%/7E>8E&)E %((;)==)(E
E*/7(E>.%>E%3>[email protected]>.)E9<898=)(E;81)'>E'8@2(E.%A)E%E=/-7/*/'%7>E),)'>E87E>.)E )7A/;876)7>E&)'%@=)E%22E98>)7>/%25CE=/-7/*/'%7>E),)'>=E%E.%A)E&))7E%7%2CD)(E %():@%>)2CE07E%7E)%;30);E
E8;E!E
E9@;=@%7>E>8E%992/'%&2)E
=>%7(%<(=E%7(E&E.%A)E&))7E%A80()(E8<E60>/-%>)(E9@;=@%7>E>8E>.%>E)%<2/);E E8;E

!E

E07'3@(/7-E;)A0=/87=E8<E6/>/-%>/87E6)%=@;)=E>.%>E%;)E 0698=)(E@987E>.)E9;898=)(E<81)'>E78>.07-E*@;?.)<E/=E;):@/;)( E
!
"$

$/=%E8=>%E
%7()<=E

#$/>CE8*E
%7E%<38=E
-
(&'#

-!-
-
-%
'-

'

-'(,--
'
'-'
+-
#'
! -
"$
"$;07'09%3E2%77);E

',-!-#
!&-
()&'--

8.a
November 14, 2022

Packet Pg. 243

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$(67+(7,&6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
+DYHDVXEVWDQWLDODGYHUVHHIIHFWRQD
VFHQLFYLVWD"
E
6XEVWDQWLDOO\GDPDJHVFHQLFUHVRXUFHV
LQFOXGLQJEXWQRWOLPLWHGWRWUHHVURFN
RXWFURSSLQJVDQGKLVWRULFEXLOGLQJVZLWKLQD
VWDWHVFHQLFKLJKZD\"

F
,QQRQXUEDQL]HGDUHDVVXEVWDQWLDOO\
GHJUDGHWKHH[LVWLQJYLVXDOFKDUDFWHURU
TXDOLW\RISXEOLFYLHZVRIWKHVLWHDQGLWV
VXUURXQGLQJV"
3XEOLFYLHZVDUHWKRVHWKDW
DUHH[SHULHQFHGIURPSXEOLFO\DF
FHVVLEOH
YDQWDJHSRLQWV
,IWKHSURMHFWLVLQDQ
XUEDQL]HGDUHDZRXOGWKHSURMHFWFRQIOLFW
ZLWKDSSOLFDEOH]RQLQJDQGRWKHUUHJXODWLRQV
JRYHUQLQJVFHQLFTXDOLW\"

G
&UHDWHDQHZVRXUFHRIVXEVWDQWLDOOLJKWRU
JODUHZKLFKZRXOGDGYHUVHO\DIIHFWGD\RU
QLJKWWLPHYLHZVLQWKHDUHD"

([FHSWDVSURYLGHGLQ3XEOLF5HVRXUFHV&RGH6HFWLRQ

(QYLURQPHQWDO6HWWLQJ
6FHQLF9LHZV
6DQ&DUORVKDVYDULHGWRSRJUDSK\ZKLFKUDQJHVIURPODQGDWVHDOHYHOLQWKHHDVWHUQSRUWLRQRI WKHFLW\WRWKHKLOOVLQWKHZHVWHUQSRUWLRQRIWKHFLW\WKDWKDYHHOHYDWLRQVRIXSWR IHHW7KH
KLOOVLGHVDQGULGJHOLQHVWKDWFRPSULVHWKHFLW\¶VGLYHUVHODQGVFDSHSURYLGHDULFKDUUD\RIVFHQLF UHVRXUFHVDQGDIIRUGQXPHURXVYDQWDJHSRLQWVIURPZKLFKVFHQLFYLVWDVFDQEHHQMR\HG9LHZV RIWKHVXUURXQGLQJKLOOV6DQ)UDQFLVFR%D\DQGWKH(DVW%D\KLOOVFDQEHDFFHVVHGLQPDQ\ DUHDVZHVWRI$ODPHGDGHODV3XOJDVLQFOXGLQJ&LW\SDUNVDQGRSHQVSDFHDQGH[LVWLQJ UHVLGHQWLDOQHLJKERUKRRGV
6DQ&DUORV

7KHSURMHFWVLWHLVDFRPSRQHQWRIWKHYLHZVRI
6DQ)UDQFLVFR%D\IURPWKH6DQ&DUORVDQG%HOPRQWKLOOV )URPWKHORZHUSRUWLRQVRI6DQ&DUORVVFHQLFYLHZVRIWKH6DQWD&UX]0RXQWDLQVWRWKH VRXWKZHVWDUHSUHVHQWEXWOLPLWHGGXHWRWKHIODWWRSRJUDSK\9LHZVRIWKHPRXQWDLQUDQJHDUH SDUWLDOO\REVWUXFWHGIURPWKHVWUHHWOHYHOYLHZE\XUEDQGHYHORSPHQWPDWXUHWUHHVDQG LQWHUYHQLQJKLOOVLGHVWRWKHVRXWKZHVW
7KH6DQ&DUORV*HQHUDO3ODQGRHVQRWLGHQWLI\DQ\RIILFLDOVFHQLFYLVWDV7KHQHDUHVW6WDWH VFHQLFKLJKZD\WRWKHSURMHFWVLWHLV,QWHUVWDWH
,
DSSUR[LPDWHO\PLOHVZHVWRIWKH
SURMHFWVLWH
&DOWUDQV
7KHSURMHFWVLWHLVQRWYLVLEOHIURP,
*DWHZD\VWRWKH&LW\
&UHDWLQJDHVWKHWLFDOO\SOHDVLQJJDWHZD\VLVDQLPSRUWDQWFRPSRQHQWRIODQGXVHSODQQLQJDQG FRPPXQLW\GHVLJQWKDWFRQWULEXWHVWRDFLW\¶VFKDUDFWHUDQGVHQVHRISODFH*DWHZD\VDUH ORFDWLRQVWKDWDQQRXQFHWRDYLVLWRURUUHVLGHQWWKDWWKH\DUHHQWHULQJWKHFLW\RUDXQLTXH

8.a
November 14, 2022

Packet Pg. 244

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
QHLJKERUKRRGZLWKLQWKHFLW\)HDWXUHVDVVRFLDWHGZLWKJDWHZD\VFDQLQFOXGHVLJQVVWUXFWXUDO HOHPHQWVVXFKDVWRZHUVRUIHQFHVRUZDOOVODQGVFDSLQJDUFKLWHFWXUDOO\VLJQLILFDQWEXLOGLQJV DQGQDWXUDOIHDWXUHVVXFKDVDURZRIWUHHV*DWHZD\VLQ6DQ&DUORVKDYHEHHQFODVVLILHGLQWR WZRFDWHJRULHV
SULPDU\DQGVHFRQGDU\3ULPDU\JDWHZD\VDUHWKHPDMRUUHJLRQDOHQWU\SRLQWV LQWRWKHFLW\RQURDGZD\VRUWUDQVSRUWDWLRQURXWHV6HFRQGDU\JDWHZD\VDUHPRUHORFDOHQWU\ SRLQWVLQWRWKHFLW\IURPQHDUE\FLWLHVLQFOXGLQJ%HOPRQWDQG5HGZRRG&LW\ 6DQ&DUORV

7KH6DQ&DUORV*HQHUDO3ODQLGHQWLILHVWKH+ROO\6WUHHWHDVWRI(O&DPLQRDVD3ULPDU\ *DWHZD\DQGVSHFLILFDOO\PHQWLRQVWKH+ROO\6WUHHWDW86+LJKZD\DQG,QGXVWULDO5RDGDV WKHSULPDU\DFFHVVURXWHIURP+LJKZD\WR6DQ&DUORVDQGWKDWKLJKWUDIILFYROXPHVDQGD PL[WXUHRIODQGXVHVLQFOXGLQJUHVLGHQWLDOLQGXVWULDODQGFRPPHUFLDOGRQRWHIIHFWLYHO\ DQQRXQFHWRYLVLWRUVWKHLUHQWUDQFHWR6DQ&DUORVHYHQWKRXJKDVPDOOPRQXPHQWIHDWXUHLV LQVWDOOHG
6DQ&DUORV

9LVXDO&KDUDFWHURI6LWHDQG6XUURXQGLQJ$UHD
7KHSURMHFWVLWHLVORFDWHGLQDKLJKO\XUEDQL]HGVHWWLQJLQWKHQRUWKHDVWSRUWLRQRIWKH&LW\ 3URPLQHQWYLVXDOIHDWXUHVRIWKHUHJLRQDOODQGVFDSHDUHGHVFULEHGEHORZDORQJZLWKWKHYLVXDO DQGDHVWKHWLFFKDUDFWHURIWKHSURMHFWVLWH
7KHSURMHFWVLWHLVORFDWHGRQWKHHDVWHUQVLGHRI,QGXVWULDO5RDGDQGWKHZHVWHUQVLGH+LJKZD\ ,QGXVWULDO5RDGLVDVL[ODQHURDGZD\WKDWUXQVLQDQRUWKVRXWKRULHQWDWLRQ7KHSURMHFWVLWH LVFXUUHQWO\GHYHORSHGDVDVHOIVWRUDJHIDFLOLW\ZLWKODQGVFDSLQJWUHHVSUHVHQWDORQJWKHHDVWHUQ ERXQGDU\RIWKHVLWHWKDWIURQWV+ROO\6WUHHWDQGWKH+LJKZD\RIIUDPSDW+ROO\6WUHHW7KHVH WUHHVDUHZLWKLQ&DOWUDQVULJKWRIZD\$QXQQDPHGHQJLQHHUHGQDWXUDOERWWRPFKDQQHOUXQV HDVWHUQDQGVRXWKHUQERXQGDULHVRIWKHSURMHFWVLWH
7KHSURMHFWVLWHLVERUGHUHGE\DPHGLFDOIDFLOLW\DQGLWVDVVRFLDWHGSDUNLQJJDUDJHWRWKHQRUWK
DIDVWIRRGUHVWDXUDQWWRWKHZHVWZLWKVLQJOHIDPLO\GZHOOLQJXQLWVIXUWKHUZHVWRIWKDWDFURVV ,QGXVWULDO5RDG
JHQHUDOFRPPHUFLDOLQGXVWULDOXVHVWRWKHVRXWK
DQG+LJKZD\WRWKHHDVW
7KHORWWKDWFRQWDLQVWKHPHGLFDOIDFLOLW\DQGSDUNLQJJDUDJHWRWKHQRUWKLVVXUURXQGHGE\ ODQGVFDSHGWXUIDQGWUHHV
WKHSDUNLQJJDUDJHLVDPL[HGRSHQDLUHQFORVHGVWUXFWXUHSDLQWHG OLJKWJUD\DQGEHLJHZLWKEODFNDFFHQWV7KHEXLOGLQJLPPHGLDWHO\ZHVWRIWKHSURMHFWVLWH ,Q1
2XW
DW,QGXVWULDO5RDGLVJHQHUDOO\SDLQWHGDQRIIZKLWHFRORUDQGLVFKDUDFWHUL]HGE\UHG DFFHQWSDQHOVWHUUDFRWWDVKLQJOHURRILQJDQGSDWWHUQHGVWRQHSLOODU 7KHJHQHUDOFRPPHUFLDOLQGXVWULDOSURSHUWLHVVRXWKRIWKHSURMHFWVLWHDUHVLQJOHVWRU\EXLOGLQJV SDLQWHGZKLWHZLWKVWHHOIUDPLQJDQGKDYHDIDoDGHRIJUD\PHWDOSDQHOVIORRUWRURRIZLQGRZV DQGFRUUXJDWHGVWHHO7KHODQGXVHGLUHFWO\VRXWKRIWKHSURMHFWVLWH LHWKDWLVORFDWHGDWWKH
VRXWKHDVWFRUQHURIWKH,QGXVWULDO5RDG+ROO\6WUHHWLQWHUVHFWLRQ LVEHLQJSURSRVHGIRU
UHGHYHORSPHQWDVWKH+RWHO,QGLJR,QDGGLWLRQWRWKHODQGXVHVGHVFULEHGDERYHVHYHUDOJDV VWDWLRQVDUHORFDWHGVRXWKRIWKHSURMHFWVLWHDFURVVWKH,QGXVWULDO5RDG+ROO6WUHHWLQWHUVHFWLRQ
RQHVWDWLRQLVDQ$ $*DVDQG)RRG0DUWSDLQWHGZKLWHZLWKEOXHDQG\HOORZDFFHQWSDQHOVDQG WKHVHFRQGVWDWLRQLVD6WDWLRQSDLQWHGZKLWHZLWKUHGDQGEOXHDFFHQWSDQHOV6HH)LJXUH IRUSKRWRVRIWKHH[LVWLQJSURMHFWVLWHDQGSKRWRVRIWKHEXLOGLQJVQRUWKZHVWDQGVRXWKRIWKH SURMHFWVLWH
([LVWLQJOLJKWVRXUFHVRQDQGQHDUWKHVLWHLQFOXGHH[WHULRUEXLOGLQJOLJKWVOLJKWVLQWKHDGMDFHQW SDUNLQJORWDW,QGXVWULDO$YHQXHDQGVWUHHWOLJKWVRQ,QGXVWULDO5RDG+ROO\6WUHHWDQGWKH SDUNLQJJDUDJHHQWUDQFHURDGVWRWKHQRUWKIRUWKHPHGLFDOIDFLOLW\7KHQHDUHVWVWUHHWOLJKWVDUH ORFDWHGDORQJ,QGXVWULDO5RDGWRWKHZHVWDQGDWWKHLQWHUVHFWLRQRI,QGXVWULDO5RDGDQG+ROO\ 6WUHHW7KHUHDUHQRVRXUFHVRIVXEVWDQWLDOGD\WLPHJODUHQHDUWKHSURMHFWVLWH WKHH[WHULRUVRI
WKHEXLOGLQJVQHDUWKHSURMHFWVLWHFRQVLVWPRVWO\RIFRQFUHWHDQGRWKHUQRQUHIOHFWLYHPDWHULDOV 7KHFRPPHUFLDOEXLOGLQJORFDWHGDW,QGXVWULDO5RDG QRUWKZHVWRIWKHSURMHFWVLWH
PD\
SURGXFHVRPHGD\WLPHJODUHDVLWVHDVWHUQIDoDGH
LHWKDWZKLFKIDFHVWKHSURMHFWVLWH
ODUJHO\
FRQVLVWVRIZLQGRZVDQGFRUUXJDWHGVWHHO

8.a
November 14, 2022

Packet Pg. 245

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHQHDUHVWODQGXVHVVHQVLWLYHWRVSLOOOLJKWDUHVLQJOHIDPLO\UHVLGHQFHVORFDWHGDSSUR[LPDWHO\ IHHW
PLOHV
VRXWKZHVWRIWKHSURMHFWVLWHRQ)DLUILHOG'ULYH7KHQHDUHVWWUDYHOODQHV DVVRFLDWHGZLWK+ROO\6WUHHWWKH+ROO\6WUHHWRIIUDPSDQG,QGXVWULDO5RDGDUHDSSUR[LPDWHO\ IHHWHDVWIHHWHDVWDQGIHHWVRXWKRIWKHSURMHFWVLWHUHVSHFWLYHO\,QDGGLWLRQWKH6DQ &DUORV$LUSRUWLVORFDWHGDSSUR[LPDWHO\IHHW
PLOHV
QRUWKHDVWRIWKHSURMHFWVLWH
5HJXODWRU\6HWWLQJ
&LW\RI6DQ&DUORV=RQLQJ2UGLQDQFH
7KH&LW\RI6DQ&DUORV=RQLQJ2UGLQDQFH7LWOHRIWKH6DQ&DUORV0XQLFLSDO&RGHFRQWDLQV WH[WHVWDEOLVKLQJGLVWULFWVIRUEDVLFODQGXVHVLQFOXGLQJRSHQVSDFHSXEOLFUHVLGHQWLDO FRPPHUFLDODQGLQGXVWULDOXVHVDQGVHWWLQJVSHFLDOUHJXODWLRQVIRUGHVLJQVWDQGDUGVDQGRWKHU VSHFLILFFRQFHUQV7KH&LW\RI6DQ&DUORV=RQLQJ2UGLQDQFHDOVRGHVFULEHVSURFHGXUHVIRU SURFHVVLQJGLVFUHWLRQDU\DSSURYDOV
7KHIROORZLQJVHFWLRQVRIWKH6DQ&DUORV=RQLQJ2UGLQDQFHPD\EHDSSOLFDEOHWRWKHSURSRVHG

SURMHFW

x 7DEOHLGHQWLILHVWKH GHYHORSPHQWVWDQGDUGVIRUFRPPHUFLDOGLVWULFWVLQFOXGLQJ WKH/DQGPDUN&RPPHUFLDO]RQLQJGHVLJQDWLRQ$PRQJRWKHUVWDQGDUGVLWHVWDEOLVKHV WKHIROORZLQJ

o 0D[LPXP+HLJKW
)HHW
o 0LQLPXP6HWEDFNV
)URQW
)HHW
,QWHULRU6LGH
)HHW
6WUHHW6LGH
)HHW
5HDU
)HHW
x &KDSWHU
RIWKH6DQ&DUORV0XQLFLSDO&RGHHVWDEOLVKHVGHV LJQUHYLHZSURFHGXUHV WRHQVXUHWKDWQHZGHYHORSPHQWVXSSRUWVWKH*HQHUDO3ODQ¶VJRDORIFUHDWLQJDYLEUDQW SHGHVWULDQDQGWUDQVLWRULHQWHGFRUHDQGGLVWLQFWLYHQHLJKERUKRRGVDQGGLVWULFWVZLWKD GLYHUVLW\RIEXLOGLQJW\SHVWKDWSURYLGHFRQWLQXLW\LQVFDOHDQGFKDUDFWHUZLWKDSSURSULDWH WUDQVLWLRQVZKHUHQHHGHG7KHVSHFLILFSXUSRVHVRIWKHGHVLJQUHYLHZSURFHVVDUHWR
o 3URPRWHH[FHOOHQFHLQVLWHSODQQLQJDQGGHVLJQDQGWKHKDUPRQLRXVDSSHDUDQFH RIEXLOGLQJVDQGVLWHV

o (QVXUHWKDWQHZDQGPRGLILHGXVHVDQGGHYHORSPHQWZLOOEHFRPSDWLEOHZLWKWKH H[LVWLQJDQGSRWHQWLDOGHYHORSPHQWRIWKHVXUURXQGLQJDUHD DQG
o 6XSSOHPHQWRWKHU&LW\UHJXODWLRQVDQGVWDQGDUGVLQRUGHUWRHQVXUHFRQWURORI DVSHFWVRIGHVLJQWKDWDUHQRWRWKHUZLVHDGGUHVVHG
o 6HFWLRQ
SURYLGHVWKHIROORZLQJGHVLJQUHYLHZFULWHULDZKLFKSURMHFWV PXVWVDWLVI\WRWKHH[WHQWWKDWWKH\DUHDSSOLFDEOH

7KHRYHUDOOGHVLJQRIWKHSURMHFWLQFOXGLQJLWVVFDOHPDVVLQJ VLWHSODQ H[WHULRUGHVLJQDQGODQGVFDSLQJZLOOHQKDQFHWKHDSSHDUDQFHDQG IHDWXUHVRIWKHSURMHFWVLWHDQGVXUURXQGLQJQDWXUDODQGEXLOWHQYLURQPHQW 7KHSURMHFWGHVLJQLVDSSURSULDWHWRWKHIXQFWLRQRIWKHSURMH FWDQGZLOO SURYLGHDQDWWUDFWLYHDQGFRPIRUWDEOHHQYLURQPHQWIRURFFXSDQWVYLVLWRUV DQGWKHJHQHUDOFRPPXQLW\
3URMHFWGHWDLOVPDWHULDOVVL JQDJHDQGODQGVFDSLQJDUHLQWHUQDOO\ FRQVLVWHQWIXOO\LQWHJUDWHGZLWKRQHDQRWKHUDQGXVHGLQDPDQQHUWKDWLV YLVXDOO\FRQVLVWHQWZLWKWKHSURSRVHGDUFKLWHFWXUDOGHVLJQ 7KHSURMHFWKDVEHHQGHVLJQHGWREHFRPSDWLEOHZLWKQHLJKERULQ J GHYHORSPHQWE\DYRLGLQJELJGLIIHUHQFHVLQEXLOGLQJVFDOHDQGFKDUDFWHU EHWZHHQGHYHORSPHQWVRQDGMRLQLQJORWVLQWKHVDPH]RQLQJGLVWULFWDQG

8.a
November 14, 2022

Packet Pg. 246

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
SURYLGLQJDKDUPRQLRXVWUDQVLWLRQLQVFDOHDQGFKDUDFWHUEHWZHHQ GLIIHUHQWGLVWULFWV
7KHSURMHFWFRQWULEXWHVWRWKHFUHDWLRQRIDQDWWUDFWLYHDQGY LVXDOO\ LQWHUHVWLQJEXLOWHQYLURQPHQWWKDWLQFOXGHVDYDULHW\RIEXLOGLQJVW\OHVDQG GHVLJQVZLWKZHOODUWLFXODWHGVWUXFWXUHVWKDWSUHVHQWYDULHGEXLOGLQJ IDFDGHVURRIOLQHVDQGEXLOGLQJKHLJKWVZLWKLQDXQLI\LQJFRQWH[WWKDW HQFRXUDJHVLQFUHDVHGSHGHVWULDQDFWLYLW\DQGSURPRWHVFRPSDWLELOLW\ DPRQJQHLJKERULQJODQGXVHVZLWKLQWKHVDPHRUGLIIHUHQWGLVWULFWV 7KHGHVLJQRIVWUHHWVFDSHVLQF OXGLQJVWUHHWWUHHVOLJKWLQJDQGSHGHVWULDQ IXUQLWXUHLVFRQVLVWHQWZLWKWKHFKDUDFWHURIDFWLYLW\FHQWHUVFRPPHUFLDO GLVWULFWVDQGQHDUE\UHVLGHQWLDOQHLJKERUKRRGV
7KHSURSRVHGGHVLJQLVFRPSDWLEOHZLWKWKHKLVWRULFDORUYLVXD OFKDUDFWHU RIDQ\DUHDUHFRJQL]HGE\WKH&LW\DVKDYLQJVXFKXQLILHGFKDUDFWHU 7KHSURMHFWGHVLJQSUHVHUYHVPDMRUSXEOLFYLHZVDQGYLVWDVIUR PPDMRU SXEOLFVWUHHWVDQGRSHQVSDFHVDQGHQKDQFHVWKHPE\SURYLGLQJDUHDVWR VWUROOEHQFKHVWRUHVWDQGHQMR\YLHZVDQGVLPLODUDPHQLWLHV 3DUNLQJDUHDVDUHGHVLJQHGDQGGHYHORSHGWREXIIHUVXUURXQGLQJ ODQG XVHV
FRPSOHPHQWSHGHVWULDQRULHQWHGGHYHORSPHQW
HQKDQFHWKH
HQYLURQPHQWDOTXDOLW\RIWKHVLWHLQFOXGLQJPLQLPL]LQJVWRUPZDWHUUXQRII DQGWKHKHDWLVODQGHIIHFW
DQGDFKLHYHDVDIHHIILFLHQWDQGKDUPRQLRXV
GHYHORSPHQW
/LJKWLQJDQGOLJKWLQJIL[WXUHVDUHGHVLJQHGWRFRPSOHPHQWEXLO GLQJVEHRI DSSURSULDWHVFDOHSURYLGHDGHTXDWHOLJKWRYHUZDONZD\VDQGSDUNLQJ DUHDVWRFUHDWHDVHQVHRISHGHVWULDQVDIHW\DQGDYRLGFUHDWLQJJODUH 7KHSURSRVHGEXLOGLQJGHVLJQDQGODQGVFDSLQJVXSSRUWVSXEOLFV DIHW\DQG VHFXULW\E\DOORZLQJIRUVXUYHLOODQFHRIWKHVWUHHWE\SHRSOHLQVLGH EXLOGLQJVDQGHOVHZKHUHRQWKHVLWH
/DQGVFDSLQJLVGHVLJQHGWREH FRPSDWLEOHZLWKDQGHQKDQFHWKH DUFKLWHFWXUDOFKDUDFWHUDQGIHDWXUHVRIWKHEXLOGLQJVRQVLWHDQGKHOS UHODWHWKHEXLOGLQJWRWKHVXUURXQGLQJODQGVFDSH3URSRVHGSODQWLQJ PDWHULDOVDYRLGFRQIOLFWVZLWKYLHZVOLJKWLQJLQIUDVWUXFWXUHXWLOLWLHVDQG VLJQDJH
x &KDSWHURIWKH6DQ&DUORV0XQLFLSDO&RGHHVWDEOLVKHVWKH SURFHGXUHVIRU HVWDEOLVKLQJD3ODQQHG'HYHORSPHQW
3'
'LVWULFWWRIDFLOLWDWHRUGHUO\GHYHORSPHQWRI
ODUJHUVLWHVLQWKH&LW\FRQVLVWHQWZLWKWKHJHQHUDO3ODQHVSHFLDOO\ZKHUHDSDUWLFXODUPL[ RIXVHVRUFKDUDFWHULVGHVLUHGWKDWFDQEHEHVWDFKLHYHGWKURXJKDQLQWHJUDWHG GHYHORSPHQWSODQ
6DQ&DUORV*HQHUDO3ODQ
7KH6DQ&DUORV*HQHUDO3ODQZDVDGRSWHGLQ
7KHIROORZLQJUHOHYDQWDHVWKHWLFV
UHODWHGSROLFLHVDUHIURPWKH*HQHUDO3ODQ¶V/DQG8VH(OHPHQW x 3ROLF\/8
5HTXLUHDOOGHYHORSPHQWWRIHDWXUHKLJKTXDOLW\GHVLJQWKDWHQKDQFHVWKH YLVXDOFKDUDFWHURI6DQ&DUORV
x 3ROLF\/8
(QVXUHWKDWQHZGHYHORSPHQWLVVHQVLWLYHWRWKHFKDUDFWHURIDGMDFHQW VWUXFWXUHVDQGWKHLPPHGLDWHQHLJKERUKRRG
x 3ROLF\/8
(QFRXUDJHGHVLJQIHDWXUHVDQGDPHQLWLHVLQQHZGHYHORSPHQWDQG UHGHYHORSPHQWLQFOXGLQJEXWQRWOLPLWHGWR

D,QWHUFRQQHFWHGVWUHHWOD\RXW
E&OXVWHULQJRIEXLOGLQJV
F /DQGVFDSLQJRQHDFKORW
G9LVXDOEXIIHUV

8.a
November 14, 2022

Packet Pg. 247

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
H)DFLOLWDWLRQRISHGHVWULDQDFWLYLW\
I 'LVWLQFWLYHQHVVDQGYDULHW\LQDUFKLWHFWXUDOGHVLJQ x 3ROLF\/8
3URPRWHSHGHVWULDQVFDOHGGHVLJQWKURXJKVLWHSODQQLQJEXLOGLQJGHVLJQ ILQLVKGHWDLOVDQGODQGVFDSLQJIRUDOOW\SHVRIGHYHORSPHQWE\UHTXLULQJKHLJKWDQG ORFDWLRQDOWUDQVLWLRQVEHWZHHQEXLOGLQJVRIYDULHGOHYHOVWKDWDUHVHQVLWLYHWRWKH LQWHUUHODWLRQVKLSVRIVXUURXQGLQJXVHVDQGVWUXFWXUHVHVSHFLDOO\UHVLGHQWLDO x 3ROLF\/8
2SWLPL]HDUFKLWHFWXUDOTXDOLW\E\HQFRXUDJLQJWKHXVHRITXDOLW\ PDWHULDOVSDUWLFXODUO\DVDFFHQWVDQGDXWKHQWLFGHWDLOLQJVXFKDVEDOFRQLHVDQGZLQGRZ WULPV
x 3ROLF\/8
(QFRXUDJHQHZFRPPHUFLDOGHYHORSPHQWWRSURYLGHRXWGRRUDUHDVDQG ODQGVFDSLQJDQGWUHHFDQRS\WRHQKDQFHWKHVXUURXQGLQJV x 3ROLF\/8
(QFRXUDJHGHVLJQRIFRQYHQLHQWSHGHVWULDQZDONZD\VZLWKVKDGHDQG PLQLPDOWULSSLQJKD]DUGVSUHIHUDEO\ZLWKODQGVFDSHEXIIHUVEHWZHHQURDGZD\VDQG ZDONZD\V
x 3ROLF\/8

(QFRXUDJHWKHGHVLJQRIDWWUDFWLYHRXWGRRUSHGHVWULDQVSDFHVWKDW HQFRXUDJHLPSURPSWXSXEOLFJDWKHULQJSODFHVZLWKIHDWXUHVVXFKDVSOD]DVLQWHULRU ZDONZD\VDQGSDVHRVRUQDPHQWDOJDWHVWUHOOLVHVOLJKWLQJWUHHVDQGODQGVFDSLQJ VHDWLQJDQGIRXQWDLQV
x 3ROLF\/8
2QDOOVLGHVRIEXLOGLQJVUHTXLUHWKHLQFRUSRUDWLRQRITXDOLW\ DUFKLWHFWXUDOGHVLJQHOHPHQWVIRUDOOEXLOGLQJIDoDGHVDQGVWHSSLQJEDFNXSSHUIORRUVLQ RUGHUWRUHGXFHEXONDQGPDVVDQGWREUHDNXSPRQRWRQRXVZDOOOLQHV x 3ROLF\/8
'LVFRXUDJHDEUXSWFKDQJHVLQEXLOGLQJVFDOH$JUDGXDOWUDQVLWLRQ EHWZHHQORZULVHWRPLGULVHEXLOGLQJVVKRXOGEHDFKLHYHGE\XVLQJWKHORZULVHEXLOGLQJV DWWKHHGJHRIWKHSURMHFWVLWH&RQVLGHUWKHUHODWLRQVKLSRIEXLOGLQJVWRWKHVWUHHWWRRQH DQRWKHUDQGWRDGMDFHQWVWUXFWXUHVDQGODQGXVHVHVSHFLDOO\VLQJOHIDPLO\UHVLGHQWLDO x 3ROLF\/8
5HTXLUHSDUNLQJDUHDVDVVRFLDWHGZLWKGHYHORSPHQWWREHORFDWHGDQG GHVLJQHGWRPLQLPL]HYLVXDOLPSDFWWRWKHJUHDWHVWH[WHQWIHDVLEOH7KLVPD\LQFOXGH ORFDWLQJSDUNLQJEHKLQGEXLOGLQJVVWUHHWIURQWDJHEHORZJUDGHRUVFUHHQLQJWKURXJKWKH XVHRIQDWXUDOODQGVFDSLQJ
x 3ROLF\/8
(QFRXUDJHFRQVWUXFWLRQRISDUNLQJDUHDVZLWKSHUPHDEOHPDWHULDOV ZKHUHDSSURSULDWH
x 3ROLF\/8
5HTXLUHWKHXQGHUJURXQGLQJRIDOOXWLOLWLHVRUDGHIHUUHGLPSURYHPHQW DJUHHPHQWLQFRQMXQFWLRQZLWKQHZFRQVWUXFWLRQDQGHQFRXUDJHWKHXQGHUJURXQGLQJRI H[LVWLQJXWLOLWLHVZKHUHIHDVLEOH
x 3ROLF\/8
5HTXLUHKLJKTXDOLW\VLJQDJHWKURXJKGHVLJQXVHRIPDWHULDOVDQG FRORUVFRPSDWLEOHZLWKDQGFRPSOHPHQWDU\WRWKHDUFKLWHFWXUDOFKDUDFWHURIWKH

EXLOGLQJ
V
DQGVXUURXQGLQJ
x 3ROLF\/8
5HTXLUHWHOHFRPPXQLFDWLRQVDQGXWLOLW\IDFLOLWLHVWREHVHQVLWLYHO\ SODFHGVKLHOGHGVFUHHQHGRUOHVVHQHGIURPYLHZWRWKHJUHDWHVWH[WHQWSRVVLEOHWKURXJK GHVLJQUHYLHZ
x 3ROLF\/8
(QFRXUDJH³JUHHQEXLOGLQJ´SUDFWLFHVLQQHZGHYHORSPHQWDQG UHGHYHORSPHQWVXFKDVWKRVHWKDWPDNHDEXLOGLQJPRUHHQHUJ\HIILFLHQWDQGUHGXFHVLWV HIIHFWRQKXPDQKHDOWKDQGWKHHQYLURQPHQWWKURXJKEHWWHUVLWLQJGHVLJQFRQVWUXFWLRQ PDLQWHQDQFHDQGRSHUDWLRQ
x 3ROLF\/8
5HTXLUHDOOQHZUHVLGHQWLDOPXOWLIDPLO\UHVLGHQWLDOFRPPHUFLDODQG LQGXVWULDOSURMHFWVVXEMHFWWRGHVLJQUHYLHZE\WKHDSSURSULDWHGHFLVLRQPDNLQJERG\IRU FRPSOLDQFHZLWKVLWHSODQQLQJDUFKLWHFWXUHVLJQLQJDQGODQGVFDSLQJFULWHULDSULRUWR DSSURYDO
x 3ROLF\/8

(QFRXUDJHWKHGHVLJQRIGHYHORSPHQWWRPLQLPL]HWKHREVWUXFWLRQRI VLJQLILFDQWYLHZVRIWKH6DQ)UDQFLVFR%D\WKHZHVWHUQKLOOVRURWKHUVLJQLILFDQWQDWXUDO YLVWDVWRWKHJUHDWHVWH[WHQWSRVVLEOH

8.a
November 14, 2022

Packet Pg. 248

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
x 3ROLF\/8
5HTXLUHKLJKTXDOLW\GHVLJQIRUEXLOGLQJVDWYLVXDOO\VLJQLILFDQWORFDWLRQV LQJDWHZD\DUHDV
x 3ROLF\/8
(QFRXUDJHGHVLJQIHDWXUHVVXFKDVODQGVFDSLQJDUWDQGGLVSOD\VLQ JDWHZD\DUHDVWKDWDUHZHOFRPLQJDWWUDFWLYHDQGFRQWULEXWHWRDXQLTXHVHQVHRISODFH x 3ROLF\/8
(QFRXUDJHGLVWLQFWLYHDUFKLWHFWXUDOIHDWXUHVVXFKDVWRZHUHOHPHQWVRU DSOD]DDWEXLOGLQJHQWU\IRUEXLOGLQJVORFDWHGDWYLVXDOO\VLJQLILFDQWORFDWLRQVZLWKLQ JDWHZD\DUHDV
x 3ROLF\/8

(QVXUHWKDWQHZGHYHORSPHQWRQWKH/DQGPDUNVLWHVDWWKHQRUWKHDVW DQGVRXWKHDVWFRUQHUVRI+ROO\6WUHHWDQG,QGXVWULDO5RDGIXQFWLRQDVWKHSULPDU\ JDWHZD\IHDWXUHVIRUWKH+ROO\6WUHHW*DWHZD\DUHD6LWHSODQQLQJEXLOGLQJWUHDWPHQWV SHGHVWULDQLPSURYHPHQWVDQGODQGVFDSHIHDWXUHVVKDOOH[KLELWH[FHSWLRQDOGHVLJQDQG x UHVSHFWLQWHJULW\RIDGMDFHQWXVH VLQFOXGLQJQHDUE\UHVLGHQWLDOSURSHUWLHV (DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ
7KH(DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ

DGGUHVVHVIXWXUHFKDQJHVLQGHYHORSPHQW
SDWWHUQVDQGLQIOX[RIMREVFRPLQJIURPPDUNHWGULYHQELRWHFKDQGOLIHVFLHQFHLQGXVWULHV7KH 9LVLRQ3ODQVHWVIRUWKFOHDUJRDOVDQGSULQFLSOHVZULWWHQWRDFKLHYHWKHGHVLUHGFKDUDFWHUIRU6DQ &DUORV¶V(DVW6LGH,QQRYDWLRQ'LVWULFW7KHIROORZLQJJRDOVPD\EHUHOHYDQWLQFRQWH[WXDOL]LQJWKH DHVWKHWLFVRIWKHSURSRVHGSURMHFW
x *2$/&RQYHUW,QGXVWULDO5RDGLQWRDIXQFWLRQDOJUHHQERXOHYDUGWKDWSURYLGHVDGLVWLQFW LGHQWLW\FUHDWHVDVHQVHRISODFHDQGZHDYHVQDWXUHLQWRWKH'LVWULFW $ (VWDEOLVKDVDIHFRPIRUWDEOHDQGZHOFRPLQJSXEOLFUHDOPRQ,QGXVWULDO5RDG L3URYLGHFRQVLVWHQWDQGJHQHURXVWUHHOLQHGVLGHZDONVDORQJ,QGXVWULDO5RDGZLWKD GRXEOHURZRIVWUHHWWUHHVDORQJWKHHDVWVLGHRIWKHURDG LL&RQVLVWHQWIRRWWUHHOLQHGVLGHZDONVLQFHUWDLQVHJPHQWVRIWKHURDGPD\ UHTXLUHVHWEDFNVRIQHZGHYHORSPHQW
LLL,QFRUSRUDWHVWUHHWIXUQLWXUHZLWKLQWKH³SULRULW\EUDQGLQJ]RQH´WRLQYLWHSHRSOHWR SDXVHOLQJHUDQGVRFLDOL]HDORQJ,QGXVWULDO5RDG
LY(PEHGJUHHQLQIUDVWUXFWXUHIRUVWRUPZDWHUWUHDWPHQWDQGPLPLFQDWXUDOV\VWHPV E\FOHDQLQJVWRUPZDWHUEHIRUHDOORZLQJLWWRIORZLQWR3XOJDV&UHHNDQGWKHVWRUP GUDLQ
%%UDQG,QGXVWULDO5RDGWRGLVSOD\WKHXQLTXHLGHQWLW\RIWKH,QQRYDWLRQ'LVWULFW L&RRUGLQDWHVLJQDJHEDQQHUVOLJKWLQJVWUHHWVFDSHHOHPHQWVDQGSXEOLFDUWWR LOOXVWUDWHWKHOHJDF\RIWKH'LVWULFW
x *2$/(VWDEOLVKWZRGLVWLQFWVXEDUHDVZLWKLQWKH'LVWULFWHQDEOLQJDGLYHUVHPL[RI EXVLQHVVHVGHYHORSPHQWW\SHVDQGXVHV
LQFOXGLQJUHVLGHQWLDO
WRWKULYH
$3ULRULWL]HDPL[RIXVHVLQWKH&DWDO\VW6XEDUHDLQFOXGLQJQHZOLIHVFLHQFHV WHFKQRORJ\DQGRWKHUFRPPHUFLDORIILFHXVHVZLWKDFWLYHXVHVDQGRWKHUFRPPXQLW\ DPHQLWLHVDWWKHJURXQGIORRU
L0DLQWDLQGHYHORSPHQWKHLJKWVDWIHHWPD[LPXP
DVSHUH[LVWLQJ]RQLQJ

UHJXODWLRQV

8.a
November 14, 2022

Packet Pg. 249

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
LLL,QUHVSRQVHWRWKH&RXQFLO¶VVWUDWHJLFREMHFWLYHIRUWKH'LVWULFWDGRSWDWLHUHG V\VWHPZKHUHQHZGHYHORSPHQWFRQWULEXWHVFHUWDLQUHVRXUFHVDQGDPHQLWLHVEDVHG RQWKHVFDOHRIGHYHORSPHQW3RWHQWLDOUHVRXUFHVLQFOXGH FRPPXQLW\RSHQVSDFH
QRQYHKLFXODUFRQQHFWLRQVDFWLYHJURXQGIORRUXVHVDQGFRPPXQLW\IDFLOLWLHV LY6WXG\WKHSRWHQWLDOIRULQWURGXFLQJZLWKLQWKHSODQDUHDRQO\PL[HGXVHUHVLGHQWLDO GHYHORSPHQWDQGRWKHUKLJKGHQVLW\KRXVLQJWKDWLVFRQWH[WXDOWRWKHQHLJKERUKRRG DORQJDUWHULDODQGFROOHFWRUVWUHHWVZLWKLQDKDOIPLOHIURPWKH6DQ&DUORV&DOWUDLQ 6WDWLRQ
&1HZEXLOGLQJVVKRXOGHQKDQFHWKHFKDUDFWHURIWKHVWUHHWDQGHPERG\DVXSHULRU TXDOLW\RIDUFKLWHFWXUHDQGXUEDQGHVLJQ
L3ODFHEXLOGLQJVFORVHWRWKHVWUHHWWRVXSSRUWDFRQWLQXRXV³VWUHHWZDOO´WKDWIUDPHV WKHHGJHVRIWKHSXEOLFUHDOP
VWUHHWVLGHZDONSODQWLQJVWULSVDQGIXUQLVKLQJ]RQH

DQGFUHDWHVDYLEUDQWDQGSHGHVWULDQRULHQWHGVWUHHWH[SHULHQFH LL8VHQRQYHKLFXODUFRQQHFWLRQVWRFUHDWHEUHDNVLQWKH³VWUHHWZDOO´DQGSURPRWHD KXPDQVFDOHZDONDEOHHQYLURQPHQWWKURXJKRXWWKH'LVWULFW)RUGHYHORSPHQWORFDWHG LQDQ$FWLYLW\+XEVHWEDFNVDUHHQFRXUDJHGWRFUHDWHVSLOORXWVSDFHIRUVRFLDO JDWKHULQJ
LLL'HVLJQQHZEXLOGLQJVWRHQJDJHWKHVWUHHWZLWKDUWLFXODWHGHQWULHVYLVXDOO\ LQWHUHVWLQJPDWHULDOVDQGFKDQJHVLQPDVVLQJDQGVFDOHWKDWFRQWULEXWHWRD SOHDVDQWKXPDQVFDOHHQYLURQPHQW
'LVFXVVLRQ
:RXOGWKHSURSRVHGSURMHFW

D
+DYHDVXEVWDQWLDODGYHUVHHIIHFWRQDVFHQLFYLVWD" /HVV7KDQ6LJQLILFDQW,PSDFW7KHSURSRVHGSURMHFWLVORFDWHGZLWKLQDQXUEDQGHYHORSHG DUHD,WLVQRWORFDWHGLQDVFHQLFDUHDQRULVLWFRQVLGHUHGSDUWRIDQRIILFLDOO\GHVLJQDWHGVFHQLF YLVWD+RZHYHUWKH6DQ&DUORV*HQHUDO3ODQVWDWHVWKDWYLHZVRIWKH6DQ)UDQFLVFR%D\FDQEH DFFHVVHGLQPDQ\DUHDVZHVWRI$ODPHGDGHODV3XOJDVLQFOXGLQJ&LW\SDUNVDQGRSHQVSDFH DQGH[LVWLQJUHVLGHQWLDOQHLJKERUKRRGV
6DQ&DUORV

7KHSURMHFWVLWHLVDFRPSRQHQWRI
WKHYLHZVRI6DQ)UDQFLVFR%D\IURPWKH6DQ&DUORVDQG%HOPRQWKLOOV7KHSURMHFWZRXOG LQWURGXFHDVL[VWRU\EXLOGLQJWKDWZRXOGEHDSSUR[LPDWHO\IHHWLQFKHVWDOO VHH)LJXUH±
%XLOGLQJ(OHYDWLRQV
WRWKHSURMHFWVLWHDQGZRXOGEHWKHODUJHVWEXLOGLQJLQWKHLPPHGLDWH YLFLQLW\7KHEXLOGLQJKDVEHHQGHVLJQHGFRQVLVWHQWZLWK&LW\SROLFLHVIRUEXLOGLQJVRQ3ULPDU\ *DWHZD\SDUFHOV
VHHGLVFXVVLRQEHORZXQGHUUHVSRQVHF
ZLWKODQGVFDSLQJDQGSXEOLFDUW
SROLFLHVDQGZLWKJODUHSROLFLHVUHODWHGWRVXQUHIOHFWLRQRQJODVVZLQGRZVDQGQLJKWWLPHOLJKW DQGJODUHIURPWKHLOOXPLQDWHGEXLOGLQJ
VHHGLVFXVVLRQEHORZXQGHUUHVSRQVHG

:KLOHWKHEXLOGLQJPD\EHDGLVFHUQDEOHIHDWXUHLQWKHYLVWDRIWKH6DQ&DUORVORZODQGVIURP YDULRXVYDQWDJHSRLQWVLQWKH6DQ&DUORVKLOOVLWZRXOGQRWEORFNYLHZVRI6DQ)UDQFLVFR%D\ EHFDXVHRIWKHHOHYDWLRQGLIIHUHQFHEHWZHHQWKHSURMHFWVLWHDQGWKHYLHZHUVLQWKH6DQ&DUORV KLOOVDQGEHFDXVHRIWKHLQWHUYHQLQJGLVWDQFH)XUWKHUPRUHWKHSURMHFWZRXOGEHUHTXLUHGWR XWLOL]HDXWRPDWHGVKDGHVZKLFKZRXOGUHGXFHWKHSRWHQWLDOIRUWKHSURMHFWWREHGLVFHUQDEOH GXULQJWKHHYHQLQJDQGQLJKWWLPHKRXUVGXHWROLJKWHPDQDWLQJIURPZLWKLQWKHEXLOGLQJ VHH
GLVFXVVLRQEHORZXQGHUUHVSRQVHG
7KHSURMHFWZRXOGKDYHDOHVVWKDQVLJQLILFDQWLPSDFWRQ VFHQLFYLHZVIURPWKH6DQ&DUORVDQG%HOPRQWKLOOVRIWKH%D\VKRUHOLQHDQG6DQ)UDQFLVFR %D\

8.a
November 14, 2022

Packet Pg. 250

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
E
6XEVWDQWLDOO\GDPDJHVFHQLFUHVRXUFHVLQFOXGLQJEXWQRWOLPLWHGWRWUHHVURFN RXWFURSSLQJVDQGKLVWRULFEXLOGLQJVZLWKLQDVWDWHVFHQLFKLJKZD\" 1R,PSDFW7KHQHDUHVW6WDWH6FHQLF+LJKZD\WRWKHSURMHFWVLWHLV,DSSUR[LPDWHO\ PLOHVWRWKHZHVWRIWKHSURMHFWVLWH'HYHORSPHQWRIWKHSURSRVHGSURMHFWZRXOGQRWGDPDJH VFHQLFUHVRXUFHVZLWKLQD6WDWH6FHQLF+LJKZD\1RLPSDFWZRXOGRFFXU F
,QQRQXUEDQL]HGDUHDVVXEVWDQWLDOO\GHJUDGHWKHH[LVWLQJY LVXDOFKDUDFWHURU TXDOLW\RISXEOLFYLHZVRIWKHVLWHDQGLWVVXUURXQGLQJV" 3XEOLFYLHZVDUHWKRVH
WKDWDUHH[SHULHQFHGIURPSXEOLFO\DFFHVVLEOHYDQWDJHSRLQW , IWKHSURMHFWLVLQ
DQXUEDQL]HGDUHDZRXOGWKHSURMHFWFRQIOLFWZLWKDSSOLFDEOH] RQLQJDQGRWKHU UHJXODWLRQVJRYHUQLQJVFHQLFTXDOLW\"
/HVVWKDQ6LJQLILFDQW,PSDFW'HYHORSPHQWRIWKHSURSRVHGSURMHFWZRXOGUHSUHVHQWDFKDQJH WRWKHH[LVWLQJYLVXDOFKDUDFWHURIWKHSURMHFWVLWH7KHSURSRVHGSURMHFWZRXOGUHSODFHWKH H[LVWLQJRQHWRWZRVWRU\VHOIVWRUDJHIDFLOLW\DQGDVVRFLDWHGSDUNLQJORWZLWKDVL[VWRU\EXLOGLQJ DSSUR[LPDWHO\IHHWLQFKHVWDOO7KHSURMHFWKRZHYHUZRXOGEHFRQVLVWHQWZLWKWKH*HQHUDO 3ODQGHVLJQDWLRQRI*HQHUDO&RPPHUFLDO,QGXVWULDO
*&,
DQGWKHSURSRVHGUH]RQLQJWR3ODQQHG
'HYHORSPHQW7KHSURMHFWZRXOGEHFRQVLVWHQWZLWKWKHRYHUDOOXUEDQFKDUDFWHURIWKH VXUURXQGLQJDUHD
7KHGHVLJQRIWKHSURSRVHGSURMHFWLQFOXGHVIHDWXUHVWRHQKDQFHWKHYLVXDOFKDUDFWHURIWKH SURMHFWVLWHDVUHTXLUHGE\/DQG8VH(OHPHQWSROLFLHVIRU3ULPDU\*DWHZD\SDUFHOV7KH SURSRVHGEXLOGLQJZRXOGDSSUR[LPDWHO\IHHWLQFKHVLQKHLJKWZKLFKLVPRUHWKDQWKH &LW\¶VPD[LPXPEXLOGLQJKHLJKWRIIHHWIRUWKH/&]RQLQJGHVLJQDWLRQ7KH$SSOLFDQWKDV VXEPLWWHGD3'DSSOLFDWLRQWRDSSURYHWKHSURSRVHGH[FHHGDQFHRIWKHVLWH¶VPD[LPXPEXLOGLQJ KHLJKWUHTXLUHPHQW5HQGHULQJVRIWKHH[WHULRURIWKHEXLOGLQJ VHH)LJXUH±9LVXDO5HQGHULQJV
IURP2II6LWH/RFDWLRQV
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
ORFDWHGRQWKHQRUWKZHVWFRUQHURIWKHEXLOGLQJ

7KHPDVVRIWKHEXLOGLQJZRXOGEHEURNHQXSRQWKHVL[WKVWRU\ZLWKDQRXWGRRUWHUUDFHVWHSSHG EDFNLQWRWKHIRRWSULQWRIWKHEXLOGLQJSURYLGLQJYLVXDOUHOLHIIURPYLHZSRLQWVZHVWRIWKHSURMHFW VLWH
HJWKHUHVLGHQWLDOQHLJKERUKRRGWRWKHZHVW
7KHSURMHFWZRXOGLQFRUSRUDWHDIULW]SDWWHUQ
IRUWKHZLQGRZVDORQJWKHVRXWKHDVWHUQFRUQHURIWKHEXLOGLQJZKLFKZRXOGVHUYHDVDQDUWLVWLF GHVLJQHOHPHQWDQGIXQFWLRQDVGHVLJQDWLQJWKHEXLOGLQJDODQGPDUNJDWHZD\ORFDWLRQ $OWKRXJKWKHSURMHFWVLWHLVEHLQJSURSRVHGIRUD3']RQLQJGHVLJQDWLRQWKLVDUWLVWLFHOHPHQW SURSRVHGIRUWKHEXLOGLQJZRXOGFRQWLQXHWRSURPRWHWKHODQGPDUNYLVLRQIRUWKHVLWHDV LQGLFDWHGE\WKHVLWH¶VH[LVWLQJ/&]RQLQJGHVLJQDWLRQ7KHGHVLJQHOHPHQWIRUWKHSURSRVHG EXLOGLQJZRXOGDOVRKHOSGHVLJQDWHWKHVLWHDVEHLQJWKHQRUWKHUQPRVWSRUWLRQ LHJDWHZD\
RI
WKH(DVW6LGH,QQRYDWLRQ'LVWULFW
7KHSURSRVHGSURMHFWZRXOGLQFOXGHODQGVFDSLQJDQGWUHHVDORQJWKHQRUWKHUQDQGVRXWKHUQ SRUWLRQVRIWKHVLWHWUHHVDORQJWKHPDMRULW\RIWKHHLJKWIRRWWDOOSULYDF\IHQFH LHEHWZHHQWKH
SURSRVHGEXLOGLQJDQGWKH,Q12XWWRWKHZHVW
DQGWZRWUHHVDORQJWKHVRXWKHUQVLGHRIWKH
SURMHFWGULYHZD\IURP,QGXVWULDO5RDG*UDVVHVDQGVKUXEVZRXOGEHSODQWHGDORQJWKH SHULPHWHURIWKHVLWHDQGDURXQGWKHEXLOGLQJ$JUDVVVKUXELVODQGZRXOGEHORFDWHGRQWKH QRUWKZHVWHUQVLGHRIWKHEXLOGLQJQHDUWKHEXLOGLQJ¶VPDLQHQWUDQFH7KHSURMHFWZRXOGDOVREH FRQVLVWHQWZLWKHOHPHQWRIWKH(DVW6LGH9LVLRQ3ODQE\FUHDWLQJPRUHQRQYHKLFXODU FRQQHFWLRQVDQGSURPRWLQJDKXPDQVFDOHZDONDEOHHQYLURQPHQWWKURXJKWKHGHYHORSPHQWRID

8.a
November 14, 2022

Packet Pg. 251

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
SHGHVWULDQF\FOLVWSDWKIURPWKHVRXWKZHVWFRUQHURIWKHSURMHFWVLWH7KLVSDWKZD\ZRXOG FRQQHFWWRWKH,QGXVWULDO5RDG+ROO\6WUHHWLQWHUVHFWLRQDQGPDNHDPDMRUFRQWULEXWLRQIRUWKH ³JUHHQERXOHYDUG´SODQQHGIRU,QGXVWULDO5RDG
7KHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKDSSOLFDEOHUHJXODWLRQVJRYHUQLQJVFHQLFTXDOLW\QRU ZRXOGLWVXEVWDQWLDOO\GHJUDGHWKHYLVXDOTXDOLW\RIWKHVLWHRULWVVXUURXQGLQJV7KHSURMHFW ZRXOG

x %HUH]RQHGWR3'DOORZLQJDGGLW LRQDOEXLOGLQJKHLJKWEH\RQGWKDWVSHFLILHGIRUWKH/& ]RQLQJGHVLJQDWLRQ

x ,QFOXGHDVWHSEDFNHOHPHQWR QWKHZHVWHUQVLGHRIWKHEXLOGLQJSURYLGLQJYLVXDOUHOLHI IURPYLHZSRLQWVZHVWRIWKHVLWH

x ,QFOXGHODQGVFDSLQJLPSURYHPHQWLQSUR[LPLW\RIWKHVLWH HJ DORQJWKHSHGHVWULDQSDWK
WRWKH,QGXVWULDO5RDG+ROO\6WUHHWLQWHUVHFWLRQ

DQG
x 6HUYHDVDODQGPDUNJDWHZD\IR UWKH&LW\DQG(DVW6LGH,QQRYDWLRQ'LVWULFWFRQVLVWHQW ZLWKLWVH[LVWLQJ]RQLQJGHVLJQDWLRQDQGYLVLRQLGHQWLILHGLQWKH&LW\¶V*HQHUDO3ODQDQG (DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ
7KHSURMHFWZRXOGEHVXEMHFWWR&LW\'HVLJQ5HYLHZZKLFKZRXOGHQVXUHFRQVLVWHQF\ZLWK DSSOLFDEOHGHYHORSPHQWUHJXODWLRQV
HJFRPSDWLEOHZLWKQHLJKERULQJGHYHORSPHQW
7KLV
LPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW
G
&UHDWHDQHZVRXUFHRIVXEVWDQWLDOOLJKWRUJODUHZKLFKZRXO GDGYHUVHO\DIIHFW GD\RUQLJKWWLPHYLHZVLQWKHDUHD"
/HVVWKDQ6LJQLILFDQWZLWK0LWLJDWLRQ,QFRUSRUDWHG7KHSURSRVHGSURMHFWZRXOGUHSODFH H[LVWLQJOLJKWVRXUFHVDVVRFLDWHGZLWKWKHH[LVWLQJRQVLWHVHOIVWRUDJHIDFLOLW\ LHH[WHULRU
EXLOGLQJOLJKWVVHFXULW\OLJKWVDQGSDUNLQJORWOLJKWV ZLWKQHZVRXUFHVRILQWHULRUDQGH[WHULRU
OLJKWLQJ7KHSURSRVHGSURMHFWZRXOGDOVRLQWURGXFHDQHZVRXUFHRIJODUHWKURXJKWKHZLQGRZV SURSRVHGRQWKHHDVWHUQVLGHRIWKHEXLOGLQJ
LHWKHIDoDGHWKDWIDFHV+LJKZD\
+RZHYHU
DVGHVFULEHGEHORZWKHVHQHZVRXUFHVRIOLJKWDQGJODUHZRXOGQRWUHVXOWDGYHUVHO\DIIHFW GD\WLPHRUQLJKWWLPHYLHZVLQWKHDUHDDQGZRXOGUHVXOWLQDOHVVWKDQVLJQLILFDQWLPSDFWDIWHUWKH LQFRUSRUDWLRQRI0LWLJDWLRQ0HDVXUH$(6
$JODUHVWXG\SUHSDUHGE\/RLVRV 8EEHORKGHWLWOHG³,QGXVWULDO5RDG *ODUH6WXG\´DQG
GDWHG1RYHPEHUZDVVXEPLWWHGIRUWKHSURMHFWDQGLVFRQWDLQHGDV$SSHQGL[$7KH SURMHFW*ODUH6WXG\HYDOXDWHGWKHSRWHQWLDOLPSDFWVIURPERWKVRODUUHIOHFWLRQVGXULQJGD\WLPH KRXUVDQGLQWHULRUOLJKWHPDQDWLQJIURPWKHEXLOGLQJGXULQJQLJKWWLPHKRXUVRQWKHH[LVWLQJ UHVLGHQWLDODUHDWRWKHZHVWVRXWKZHVW+LJKZD\DQG6DQ&DUORV$LUSRUW7KH³,QWHULRU %XLOGLQJ/LJKWLQJ´DQG³([WHUQDO6RODU*ODUH´VHFWLRQEHORZLQFRUSRUDWHGLVFXVVLRQVIURPWKH *ODUH6WXG\
([WHULRU%XLOGLQJ/LJKWLQJ
7KHSURSRVHGSURMHFWLQFOXGHVH[WHULRUOLJKWLQJLQWKHIRUPRI
x 7KUHHLOOXPLQDWHGEXLOGLQJVLJQV WKDWZRXOGEHLQVWDOOHGRQWKHVL[WKVWRU\RQWKH VRXWKHUQQRUWKHUQDQGHDVWHUQIDoDGHV

x 3HGHVWULDQSROHOLJKWVLQVWDOOHG DORQJWKHVLWHHQWUDQFHVLGHZDON
x %ROODUGOLJKWLQJLQVWDOOHGLQ WKHJUDVVVKUXELVODQG
x 6WHSOLJKWVLQVWDOOHGRQWKHEX LOGLQJHQWUDQFHSODQWHUV DQG
x /LJKWIL[WXUHVLQVWDOOHGRQWKHEXLOGLQJHQWUDQFHFROXPQV

%XLOGLQJVLJQDJHRQWKHZHVWHUQVLGHRIWKHEXLOGLQJ
LHWKDWZKLFKIDFHVWKHUHVLGHQWLDOQHLJKERUKRRG

ZRXOGQRWEHLOOXPLQDWHG

8.a
November 14, 2022

Packet Pg. 252

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHVRXUFHLQWHQVLW\DQGW\SHRIH[WHULRUOLJKWLQJIRUWKHSURMHFWVLWHZRXOGEHW\SLFDOIRU RULHQWDWLRQDQGVDIHW\QHHGVDQGZRXOGEHFRQVLVWHQWZLWK&LW\VWDQGDUGVDQGUHJXODWLRQV7KH LOOXPLQDWLRQSURSRVHGZRXOGEHORZOHYHODQGWKHRWKHUH[WHULRUOLJKWV HJEXLOGLQJDQGOLJKW
SROHV
ZRXOGEHVKLHOGHGWRUHGXFHOLJKWVSLOORUJODUH([WHULRUOLJKWVIRUVDIHW\VHFXULW\DQG ODQGVFDSLQJDQGEXLOGLQJLOOXPLQDWLRQZRXOGQRWFUHDWHVXEVWDQWLDOVSLOOOLJKW ([WHUQDO6RODU*ODUH5HIOHFWLRQ
6XQOLJKWUHIOHFWLRQVIURPWKHSURSRVHGEXLOGLQJ¶VJODVVZLQGRZIDoDGHVKDYHWKHSRWHQWLDOWR LPSDFWSDVVLQJPRWRULVWVDQGSHGHVWULDQV7KH*ODUH6WXG\FRQFOXGHGWKDWWKHSURSRVHG EXLOGLQJZRXOGQRWKDYHWKHSRWHQWLDOWRUHVXOWLQUHIOHFWLRQVWKDWZRXOGEHYLVLEOHDWWKHDLUSRUWRU +ROO\6WUHHWRYHUSDVV
6XQOLJKWUHIOHFWLRQVPD\EHYLVLEOHIURPRWKHUORFDWLRQVLQSUR[LPLW\RIWKHSURMHFWVLWHLQFOXGLQJ
x 6RXWKERXQG+LJKZD\DQGWKHV RXWKERXQG+ROO\6WUHHWRIIUDPS
x :HVWERXQG+ROO\6WUHHWDOPRVW LPPHGLDWHO\VRXWKRIWKHSURMHFWVLWHDSSURDFKLQJ ,QGXVWULDO5RDG

x 1RUWKERXQG,QGXVWULDO5RDGDWWK H+ROO\6WUHHWLQWHUVHFWLRQ
x (DVWERXQG+ROO\6WUHHWDSS URDFKLQJ,QGXVWULDO5RDG DQG
x (DVWERXQG6SULQJILHOG5RDG
LHZLWKLQWKHUHVLGHQWLDOQHLJK ERUKRRGZHVWRIWKHSURMHFW VLWH

7KH*ODUH6WXG\QRWHVWKDWDOWKRXJKWKHVHUHIOHFWLRQVFRXOGRFFXUPDQ\RIWKHPZRXOGEH SDUWLDOUHIOHFWLRQVDQGRUWKHUHIOHFWLRQVZRXOGEHREVFXUHGEORFNHGE\EXLOGLQJVRUWUHHV)RU H[DPSOHWKHDUHDLQZKLFKUHIOHFWLRQVFRXOGRFFXURQVRXWKERXQG+LJKZD\DQGWKH VRXWKERXQG+ROO\6WUHHWRIIUDPSZRXOGEHUHODWLYHO\VPDOOZRXOGQRWRFFXUHYHU\PRQWKRIWKH \HDU
HJPRWRULVWVRQVRXWKERXQG+LJKZD\FRXOGRQO\EHH[SRVHGGXULQJSRUWLRQVRI±QRW DOORI±WKHPRQWKVRI0DUFKDQG6HSWHPEHU
DQGWKHUHIOHFWLRQVZRXOGRQO\RFFXUIRU
DSSUR[LPDWHO\PLQXWHVRUOHVVDIWHUVXQULVHVXQVHW$VQRWHGSUHYLRXVO\WUHHVWKDWH[LVWLQ SUR[LPLW\RIWKHSURMHFWVLWHDQGRUWKDWZRXOGEHSODQWHGDVSDUWRIWKHSURMHFWZRXOGKHOSLQKLELW VXQOLJKWUHIOHFWLRQ
(YHU\EXLOGLQJZLWKJODVVZLOOJHQHUDWHVXQOLJKWUHIOHFWLRQV:KHQZKHUHDQGIRUKRZORQJWKHVH UHIOHFWLRQVDUHYLVLEOHDUHGHSHQGHGRQWKHEXLOGLQJ¶VGHVLJQ$OWKRXJKWKHSURSRVHGSURMHFW ZRXOGUHVXOWLQVXQOLJKWUHIOHFWLRQLWZRXOGQRWDGYHUVHO\DIIHFWGD\WLPHYLHZVLQWKHDUHD

EHFDXVH

6XQOLJKWUHIOHFWLRQVZRXOGEHYLVLEOHIRUDQKRXURUOHVVDWUHFHLYLQJORFDWLRQVQHDU VXQULVHDQGVXQVHW

6XQOLJKWUHIOHFWLRQVZRXOGQRWEHSUHVHQWDWWKHVDPHORFDWLRQWKURXJKRXWWKHHQWLUH GXUDWLRQRIWKH\HDU0DQ\ORFDWLRQVZRXOGRQO\KDYHIHZPRQWKVRXWRIWKH\HDUGXULQJ ZKLFKUHIOHFWLRQVFRXOGRFFXU

0DQ\ORFDWLRQVZRXOGRQO\EHVXEMHFWWRUHIOHFWLRQVRIIDSRUWLRQRIWKHEXLOGLQJ
7UHHVDQGRWKHUEXLOGLQJVZRXOGREVFXUHPXFKRIWKHEXLOGLQJ¶VHOHYDWLRQVIURPUHFHSWRU ORFDWLRQVZHUHQRWLQFOXGHGLQWKHJODUHDQDO\VLV7KHVHLQWHUYHQLQJWUHHVVWUXFWXUHV ZRXOGLQKLELWUHIOHFWLRQV

0RWRULVWVDUHWUDQVLHQWUHFHSWRUVPHDQLQJWKDWWKH\ZRXOGQRWEHH[SRVHGIRUUHIOHFWHG VXQOLJKWIRUORQJSHULRGVRIWLPH
)XUWKHUPRUHLQDGGLWLRQWRWKHDERYHWKH*ODUH6WXG\VWDWHVWKDWWKHSURSRVHGEXLOGLQJ¶V VSHFLILHGJODVVKDVH[WHULRUYLVXDOUHIOHFWDQFHZKLFKLVQRWFRQVLGHUHG³KLJKO\UHIOHFWLYH´ 7KHSURMHFW*ODUH6WXG\FRQFOXGHGWKHSURMHFWZRXOGQRWJHQHUDWHJODUHIURPUHIOHFWLRQVRIWKH VXQYLVLEOHWRDLUWUDIILFRQWKHUXQZD\RULQIOLJKWSDWKV$VDUHVXOWJODUHJHQHUDWHGE\VXQOLJKW UHIOHFWLQJRIIWKHSURSRVHGEXLOGLQJZRXOGQRWDGYHUVHO\LPSDFWWKH6DQ&DUORV$LUSRUW

8.a
November 14, 2022

Packet Pg. 253

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,QWHULRU%XLOGLQJ/LJKWLQJ
/LJKWLQJZRXOGEHLQFOXGHGLQWKHXSSHUIRXUVWRULHVRIWKHEXLOGLQJ LHWKDWZKLFKFRPSULVHWKH
ODERUDWRU\RIILFHVSDFH
DQGZLWKLQWKHSDUNLQJJDUDJH
,QWHULRUHOHFWULFOLJKWLQJHPDQDWLQJIURPWKHSURSRVHGEXLOGLQJFDQJHQHUDWHXQZDQWHGLVVXHV VXFKDVOLJKWHJUHVVDQGJODUHZKHQEULJKWVXUIDFHVDQGOLJKWIL[WXUHVFDQEHVHHQIURPWKH RXWVLGHGXULQJQLJKWKRXUV:KLOHWKHUHLVQRPHWULFIRUH[FHVVLYHEULJKWQHVVWKHSURMHFW*ODUH 6WXG\GHVFULEHGWKHLVVXHZLWKW\SLFDOQLJKWLPDJHVRIEXLOGLQJVWKDWKDYHLQWHULRUOLJKWVWXUQHG RQFRXSOHGZLWKDFDOLEUDWHGIDOVHFRORULPDJHWKDWGHWDLOVWKHOXPLQDQFH RUEULJKWQHVV
RIWKH
YLHZLQFDQGHODVSHUPHWHUVTXDUHG,IWKHOLJKWVRXUFHLVGLUHFWO\YLVLEOHWKHSURMHFWEXLOGLQJ PD\EHFRQVLGHUHGDVRXUFHRIJODUHDOWKRXJKJHQHUDOO\LQWHULRUOLJKWLQJLVQRWDVEULJKWDVWKH H[WHULRUFRPPHUFLDOODQGVFDSHRUVWUHHWOLJKWLQJ
7KHPDLQVRXUFHRIOLJKWSURGXFHGE\WKHSURSRVHGGHYHORSPHQWZRXOGEHJHQHUDWHGE\LQWHULRU OLJKWLQJLQVWDOOHGWKURXJKRXWWKHEXLOGLQJ$OWKRXJKLQWHULRUOLJKWVRXUFHVZRXOGEHYLVLEOHIURP RXWVLGHWKHEXLOGLQJGXULQJQLJKWWLPHKRXUVOLJKWWUDQVPLVVLRQZRXOGEHUHGXFHGE\LQWHULRUOLJKW IL[WXUHVWKDWUHIOHFWXSZDUGDQGGRZQZDUG
LHQRWODWHUDOO\
ZKLFKZRXOGUHGXFHRXWZDUGJODUH
:LQGRZVHTXLSSHGZLWKDXWRPDWHGUROOHUVKDGHVPDUNHGO\GHFUHDVHWKHOXPLQDQFHRU EULJKWQHVVRILQWHULRUOLJKWLQJIURPDEXLOGLQJ
/LJKWLQJLVDOVRSURSRVHGZLWKLQWKHSDUNLQJJDUDJH
KRZHYHUWKLVOLJKWLQJZRXOGEHFRQWDLQHG
ZLWKLQWKHVWUXFWXUHDQGQRWGLUHFWHGWRWKHRXWVLGHHQYLURQPHQW &RQFOXVLRQ
7KHSURSRVHGSURMHFWZRXOGUHVXOWLQQHZVRXUFHVRIOLJKWDQGJODUHLQFOXGLQJH[WHULRUOLJKWLQJ

HJEXLOGLQJVLJQDJHOLJKWSROHVHWF
LQWHULRUOLJKWV
HJWKRVHXVHGWRLOOXPLQDWHWKHRIILFH
DQGODERUDWRU\VSDFHDVZHOODVWKHSDUNLQJJDUDJH
DQGH[WHUQDOUHIOHFWLRQV
7KHSURMHFWZRXOGLQFRUSRUDWHGHVLJQIHDWXUHVWKDWZRXOGLQKLELWOLJKWWUDQVPLVVLRQIURPH[WHULRU EXLOGLQJVRXUFHVVXFKDVGLUHFWLQJVRXUFHVRIOLJKWLQXSZDUGDQGGRZQZDUGGLUHFWLRQV LHQRW
ODWHUDOO\WRWKHH[WHUQDOHQYLURQPHQW
VKLHOGLQJWKRVHVRXUFHVDQGFRPSO\LQJZLWK&LW\
UHJXODWLRQV7KHSURSRVHGSURMHFWZRXOGDOVRQRWLQFOXGHLOOXPLQDWHGVLJQDJHRQLWVZHVWHUQ IDoDGH
LHWKDWZKLFKIDFHVWKHUHVLGHQWLDOQHLJKERUKRRG

7KHSURSRVHGSURMHFWFRXOGDOVRUHVXOWLQVXQOLJKWUHIOHFWLRQGXULQJWKHPRUQLQJDQGHYHQLQJ KRXUVZKHQWKHVXQLVULVLQJDQGVHWWLQJ7KHVHUHIOHFWLRQVZRXOGQRWKDYHDVLJQLILFDQWDGYHUVH HIIHFWRQWKHHQYLURQPHQW7KHSURSRVHGSURMHFWZRXOGSHUIRUPEHWWHUDVZHOODVLIQRWEHWWHU WKDQW\SLFDOEXLOGLQJVRIWKLVVFDOHZLWKJODVV
/2,6268%%(/2+'(
7KHEXLOGLQJ¶V
VSHFLILHGJODVVKDVH[WHULRUYLVXDOUHIOHFWDQFHZKLFKLVQRWFRQVLGHUHG³KLJKO\UHIOHFWLYH´ DQGWKHEXLOGLQJVHOHYDWLRQDQGRULHQWDWLRQOLPLWWKHWLPHVZKHQ DQGWKHDUHDVZKHUH

UHIOHFWLRQVDUHYLVLEOH7UHHVDQGRWKHULQWHUYHQLQJVWUXFWXUHV HJEXLOGLQJV
ZRXOGIXUWKHU
UHGXFHWKHSRWHQWLDOIRUUHIOHFWHGVXQOLJKWIURPWKHEXLOGLQJ)XUWKHUPRUHJODUHJHQHUDWHGE\ VXQOLJKWUHIOHFWLQJRIIWKHSURSRVHGEXLOGLQJZRXOGQRWDGYHUVHO\LPSDFWWKH6DQ&DUORV$LUSRUW )LQDOO\OLJKWIURPVRXUFHVLQVLGHWKHEXLOGLQJFRXOGEHWUDQVPLWWHGRXWZDUGGXULQJWKHHYHQLQJ DQGQLJKWWLPHKRXUV7KHSURMHFW*ODUH6WXG\FRQFOXGHGLWVLQWHULRUUROOHUVKDGH UHFRPPHQGDWLRQVZRXOGDGGUHVVDQ\JODUHFRQFHUQIURPSURSRVHGEXLOGLQJ¶VLQWHULRUHOHFWULF OLJKWLQJ7KHSURMHFW*ODUH6WXG\¶VLQWHULRUUROOHUVKDGHUHFRPPHQGDWLRQVDUHLQFRUSRUDWHGEHORZ DV0LWLJDWLRQ0HDVXUH$(6
,PSDFW$(6
/LJKWHJUHVVDQGJODUHJHQHUDWHGE\SURMHFWLQWHULRUHOHFWULFOLJKWVFRXOG DGYHUVHO\LPSDFWVXUURXQGLQJVHQVLWLYHOLJKWUHFHSWRUVGXULQJQLJKWWLPHKRXUV 0LWLJDWLRQ0HDVXUH$(6
,QVWDOO,QWHULRU$XWRPDWHG5ROOHU6KDGHV7KHSURMHFW VKDOOLPSOHPHQWWKHDXWRPDWHGVKDGHUHFRPPHQGDWLRQVIRUEUDQGIDEULFW\SHDQGFRORU RSHQQHVVDQGDXWRPDWLRQFRQWDLQHGZLWKLQWKHSURMHFW*ODUH6WXG\ /2,626

8.a
November 14, 2022

Packet Pg. 254

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
8%%(/2+'(
7KHLQWHULRUUROOHUVKDGHVVKDOOEHVRXUFHGIURP(FRYHLORU6R+R DQGPHHWWKHVSHFLILFDWLRQVGHWDLOHGLQWKH*ODUH6WXG\,I(FR9HLOVKDGHVDUHVHOHFWHG WKHSURMHFW$SSOLFDQWVKDOOVHOHFWWKHUHFRPPHQGHGVFUHHQVHULHVLQWKHFRORUVLOYHU ELUFKZKLFKSURYLGHVWKHEHVWEDODQFHRIWKHSHUIRUPDQFHFULWHULDIRUWKHSURMHFW,I6R+R VKDGHVDUHVHOHFWHGWKHSURMHFW$SSOLFDQWVKDOOVHOHFWIURPWKHZHDYHDQGFRORURSWLRQV UHFRPPHQGHGZLWKLQWKH*ODUH6WXG\
LHVLOYHUVDQGOLJKWJUH\GRYHJUH\RUVLOYHU
ELUFK

7KHLQWHULRUUROOHUVKDGHVVKDOOEHRULHQWHGLQWKHSURMHFWEXLOGLQJDVIROORZVDFFRUGLQJWR WKH³,QWHULRU5ROOHU6KDGH5HFRPPHQGDWLRQ
2SHQQHVVE\2ULHQWDWLRQ´ILJXUHLQFOXGHG
RQSDJHRIWKHSURMHFW*ODUH6WXG\

x 2QH

SHUFHQWRSHQQHVVRQWKHZHVWHUQIDoDGHRQVWRULHV DQG x 7KUHH

SHUFHQWRSHQQHVVZLWK VHDWVSHUSHQGLFXODUWRIDoDGHRQH
SHUFHQW
RSHQQHVVZLWKIDFHVRUEDFNWRIDoDGHRQWKHHDVWHUQDQGVRXWKHUQIDFDGHVRQ VWRULHVDQG
x 7KUHH

SHUFHQWRSHQQHVVRQWK HQRUWKHUQIDoDGHRQVWRULHVDQG
7KHSURMHFWVKDOOLQVWDOOUROOHUVKDGHVZLWKDXWRPDWHGIXQFWLRQDOLW\WKDWLVUHVSRQVLYHWR VN\FRQGLWLRQVDQGVRODUSRVLWLRQVWRPD[LPL]HGD\OLJKWKDUYHVWLQJPDLQWDLQYLHZVDQG OLPLWHOHFWULFOLJKWHPDQDWLQJIURPWKHEXLOGLQJDWQLJKW 7KHSURMHFWVKDOOLQVWDOORFFXSDQF\VHQVRUVIRUWKHEXLOGLQJ¶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
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGHIIHFWLYHO\UHGXFHRUHOLPLQDWHOLJKWHJUHVVDQG JODUHIURPLQWHULRUHOHFWULFOLJKWVDQGUHGXFHSRWHQWLDOQLJKWWLPHOLJKW DQGJODUHLPSDFWVWROHVVWKDQVLJQLILFDQW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOEHUHVSRQVLEOHIRULQVWDOOLQJUROOHUVKDGHVWKDW PHHWWKHUHTXLUHPHQWVVSHFLILHGLQWKLVPLWLJDWLRQPHDVXUH 7LPLQJ
7KH&LW\VKDOOHQVXUHWKHVHVSHFLILFDWLRQVDUHGHWDLOHGRQSURMHFW SODQV7KH&LW\VKDOODOVRUHYLHZSXUFKDVHRUGHUVIRUWKHVKDGHVWR HQVXUHWKH\PHHWWKHVSHFLILFDWLRQVUHTXLUHGE\WKLVPLWLJDWLRQ PHDVXUH
0RQLWRULQJ
7KH&LW\VKDOOFRQILUPWKHLQWHULRUVKDGHVSHFLILFDWLRQVWKURXJK SXUFKDVHRUGHU
7KHSURMHFW*ODUH6WXG\GHWHUPLQHGWKDWZLWKVSHFLILFDXWRPDWHGUROOHUVKDGHVLQVWDOOHGWKH SURMHFWEXLOGLQJUHVXOWLQJOXPLQDQFHOHYHOVZRXOGEHOHVVWKDQFDQGHODVSHUPHWHUVTXDUHG ZKLFKZRXOGEHOHVVWKDQWKDWJHQHUDWHGE\DFRPSXWHUPRQLWRU7KLVOHYHORIOXPLQDQFHZRXOG QRWFDXVHSUREOHPVRIOLJKWHJUHVVRUJODUH7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQWZLWK PLWLJDWLRQLQFRUSRUDWHG

8.a
November 14, 2022

Packet Pg. 255

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
5HIHUHQFHV
&DOWUDQV³&DOLIRUQLD6WDWH6FHQLF+LJKZD\6\VWHP0DS´$FFHVVHGRQ'HFHPEHU DW
KWWSV
FDOWUDQVPDSVDUFJLVFRPDSSVZHEDSSYLHZHULQGH[KWPO"LG GIGGFFF HIDDFDD
&LW\RI6DQ&DUORV
6DQ&DUORV*HQHUDO3ODQ
(QYLVLRQ$GRSWHG2FWREHU

BBBBBB6DQ&DUORV0XQLFLSDO&RGH7LWOH
=RQLQJ5HYLVHG
/RLVRV 8EEHORKGH,QGXVWULDO5RDG
*ODUH6WXG\1RYHPEHU

8.a
November 14, 2022

Packet Pg. 256

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$*5,&8/785$/$1')25(675(6285&(6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
&RQYHUW3ULPH)DUPODQG8QLTXH)DUPODQG
RU)DUPODQGRI6WDWHZLGH,PSRUWDQFH

)DUPODQG
DVVKRZQRQWKHPDSVSUHSDUHG
SXUVXDQWWRWKH)DUPODQG0DSSLQJDQG
0RQLWRULQJ3URJUDPRIWKH&DOLIRUQLD
5HVRXUFHV$JHQF\WRQRQDJULFXOWXUDOXVH"

E
&RQIOLFWZLWKH[LVWLQJ]RQLQJIRUDJULFXOWXUDO
XVHRUD:LOOLDPVRQ$FWFRQWUDFW"
F
&RQIOLFWZLWKH[LVWLQJ]RQLQJIRURUFDXVH
UH]RQLQJRIIRUHVWODQG
DVGHILQHGLQ3XEOLF
5HVRXUFHV&RGH6HFWLRQ
J

WLPEHUODQG
DVGHILQHGE\3XEOLF5HVRXUFHV
&RGH6HFWLRQ
RUWLPEHUODQG]RQHG
7LPEHU
ODQG3URGXFWLRQ
DVGHILQHGE\
*RYHUQPHQW&RGH6HFWLRQ
J

,QGHWHUPLQLQJZKHWKHULPSDFWVWRDJULFXOWXUDOUHVRXUFHVDUHVLJQLILFDQWHQYLURQPHQWDOHIIHFWVOHDGDJHQFLHV PD\UHIHUWRWKH&DOLIRUQLD$JULFXOWXUDO/DQG(YDOXDWLRQDQG6L WH$VVHVVPHQW0RGHO

SUHSDUHGE\WKH
&DOLIRUQLD'HSWRI&RQVHUYDWLRQDVDQRSWLRQDOPRGHOWRXVHLQDVVHVVLQJLPSDFWVRQDJULFXOWXUHDQGIDUPODQG ,Q GHWHUPLQLQJ ZKHWKHU LPSDFWV WRIRUHVW UHVRXUFHV LQFOXGLQJ WLPEHUODQG DUH VLJQLILFDQW HQYLURQPHQWDO HIIHFWVOHDGDJHQFLHVPD\UHIHUWRLQIRUPDWLRQFRPSLOHGE\WKH &DOLIRUQLD'HSDUWPHQWRI)RUHVWU\DQG)LUH 3URWHFWLRQUHJDUGLQJWKHVWDWH¶VLQYHQWRU\RIIRUHVWODQGLQFOXGLQJWKH)RUHVWDQG5DQJH$VVHVVPHQW3URMHFW DQGWKH)RUHVW/HJDF\$VVHVVPHQWSURMHFW
DQGIRUHVWFDUERQPHDVXUHPHQWPHWKRGRORJ\SURYLGHGLQ)RUHVW 3URWRFROVDGRSWHGE\WKH&DOLIRUQLD$LU5HVRXUFHV%RDUG (QYLURQPHQWDO6HWWLQJ
7KHSURMHFWVLWHLVORFDWHGLQWKH&LW\RI6DQ&DUORVDWDQH[LVWLQJVHOIVWRUDJHIDFLOLW\DQGLV VXUURXQGHGE\FRPPHUFLDOPL[HGXVHDQGOLJKWLQGXVWULDODQGUHVLGHQWLDOODQGXVHV7KH &DOLIRUQLD'HSDUWPHQWRI&RQVHUYDWLRQ¶V)DUPODQG0DSSLQJDQG0RQLWRULQJ3URJUDPLGHQWLILHV WKHVLWHDV8UEDQDQG%XLOWXS/DQG
&'2&

'LVFXVVLRQ
:RXOGWKHSURSRVHGSURMHFW

D
&RQYHUW3ULPH)DUPODQG8QLTXH)DUPODQGRU)DUPODQGRI6WDW HZLGH,PSRUWDQFH

)DUPODQG
DVVKRZQRQWKHPDSVSUHSDUHGSXUVXDQWWRWKH)DUPODQG0DSSLQJ DQG0RQLWRULQJ3URJUDPRIWKH&DOLIRUQLD5HVRXUFHV$JHQF\WRQRQDJULFXOWXUDO XVH"

8.a
November 14, 2022

Packet Pg. 257

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
E
&RQIOLFWZLWKH[LVWLQJ]RQLQJIRUDJULFXOWXUDOXVHRUD:LO OLDPVRQ$FWFRQWUDFW" F
&RQIOLFWZLWKH[LVWLQJ]RQLQJIRURUFDXVHUH]RQLQJRIIRU HVWODQG DVGHILQHGLQ
3XEOLF5HVRXUFHV&RGHVHFWLRQ
J

WLPEHUODQG
DVGHILQHGE\3XEOLF
5HVRXUFHV&RGHVHFWLRQ
RUWLPEHUODQG]RQHG7LPEHUODQG3URGXFWLRQ
DV
GHILQHGE\*RYHUQPHQW&RGHVHFWLRQ
J

"
G
5HVXOWLQWKHORVVRIIRUHVW ODQGRUFRQYHUVLRQRIIRUHVWODQGWRQRQIRUHVWXVH" H
,QYROYHRWKHUFKDQJHVLQWKHH[LVWLQJHQYLURQPHQWZKLFKGXH WRWKHLUORFDWLRQRU QDWXUHFRXOGUHVXOWLQFRQYHUVLRQRI)DUPODQGWRQRQDJULFXOWXUDOXVHRU FRQYHUVLRQRIIRUHVWODQGWRQRQIRUHVWXVH"
1R,PSDFW
5HVSRQVHVD±H
7KHUHDUHQRIRUHVWODQGVRUDJULFXOWXUDOODQGVRQRUQHDUWKH SURSRVHGSURMHFWVLWHZKLFKLVFXUUHQWO\GHYHORSHGDVDVXUIDFHSDUNLQJORWDQGVXUURXQGHGE\ XUEDQODQGXVHV7KHSURMHFWZRXOGQRWFRQYHUWRUFDXVHWKHFRQYHUVLRQRIDQ\IDUPODQGRU IRUHVWODQGWRDQRQDJULFXOWXUDOQRQIRUHVWXVH7KHSURSRVHGSURMHFWZRXOGQRWLPSDFW3ULPH )DUPODQG8QLTXH)DUPODQG)DUPODQGRI6WDWHZLGH,PSRUWDQFHIRUHVWODQGRUODQGXQGHUD :LOOLDPVRQ$FWFRQWUDFW7KXVWKHSURMHFWZRXOGQRWUHVXOWLQLPSDFWVWRDQ\DJULFXOWXUDORU IRUHVWU\UHVRXUFHV1RLPSDFWZRXOGRFFXU
5HIHUHQFHV
&DOLIRUQLD'HSDUWPHQWRI&RQVHUYDWLRQ
&'2&

)DUPODQG0DSSLQJDQG0RQLWRULQJ
3URJUDP6DQ0DWHR&RXQW\,PSRUWDQW)DUPODQG3XEOLVKHG6HSWHPEHU

8.a
November 14, 2022

Packet Pg. 258

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$,548$/,7<

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
&RQIOLFWZLWKRUREVWUXFWLPSOHPHQWDWLRQRI
WKHDSSOLFDEOHDLUTXDOLW\SODQ"
E
5HVXOWLQDFXPXODWLYHO\FRQVLGHUDEOHQHW
LQFUHDVHRIDQ\FULWHULDSROOXWDQWIRUZKLFKWKH
SURMHFWUHJLRQLVQRQDWWDLQPHQWXQGHUDQ
DSSOLFDEOHIHGHUDORUVWDWHDPELHQWDLUTXDOLW\
VWDQGDUG"

F
([SRVHVHQVLWLYHUHFHSWRUVWRVXEVWDQWLDO
SROOXWDQWFRQFHQWUDWLRQV"
G
5HVXOWLQRWKHUHPLVVLRQV
VXFKDVWKRVH
OHDGLQJWRRGRUV
DGYHUVHO\DIIHFWLQJD
VXEVWDQWLDOQXPEHURISHRSOH"

:KHUHDYDLODEOHWKHVLJQLILFDQFHFULWHULDHVWDEOLVKHGE\WKHDSSOLFDEOHDLUTXDOLW\PDQDJHPHQWGLVWULFWRUDLU SROOXWLRQFRQWUROGLVWULFWPD\EHUHOLHGXSRQWRPDNHWKHIROORZLQJGHWHUPLQDWLRQV (QYLURQPHQWDO6HWWLQJ
$LUTXDOLW\LVDIXQFWLRQRISROOXWDQWHPLVVLRQVDQGWRSRJUDSKLFDQGPHWHRURORJLFDOLQIOXHQFHV 3K\VLFDODWPRVSKHULFFRQGLWLRQVVXFKDVDLUWHPSHUDWXUHZLQGVSHHGDQGWRSRJUDSK\LQIOXHQFH DLUTXDOLW\
&ULWHULD$LU3ROOXWDQWV
)HGHUDOVWDWHDQGORFDOJRYHUQPHQWVFRQWURODLUTXDOLW\WKURXJKWKHLPSOHPHQWDWLRQRIODZV RUGLQDQFHVUHJXODWLRQVDQGVWDQGDUGV7KHIHGHUDODQGVWDWHJRYHUQPHQWVKDYHHVWDEOLVKHG DPELHQWDLUTXDOLW\VWDQGDUGVIRU³FULWHULD´SROOXWDQWVFRQVLGHUHGKDUPIXOWRWKHHQYLURQPHQWDQG SXEOLFKHDOWK1DWLRQDO$PELHQW$LU4XDOLW\6WDQGDUGV
1$$46
KDYHEHHQHVWDEOLVKHGIRU
FDUERQPRQR[LGH
&2
OHDG
3E
QLWURJHQGLR[LGH
12
R]RQH
2
ILQHSDUWLFXODWHPDWWHU

SDUWLFOHVPLFURQVLQGLDPHWHUDQGVPDOOHURU30 LQKDODEOHFRDUVHSDUWLFXODWHPDWWHU

SDUWLFOHVPLFURQVLQGLDPHWHUDQGVPDOOHURU30
DQGVXOIXUGLR[LGH
62
&DOLIRUQLD
$PELHQW$LU4XDOLW\6WDQGDUGV
&$$46
DUHPRUHVWULQJHQWWKDQWKHQDWLRQDOVWDQGDUGVIRUWKH SROOXWDQWVOLVWHGDERYHDQGLQFOXGHWKHIROORZLQJDGGLWLRQDOSROOXWDQWV K\GURJHQVXOILGH
+6

VXOIDWHV
62;
DQGYLQ\OFKORULGH,QDGGLWLRQWRWKHVHFULWHULDSROOXWDQWVWKHIHGHUDODQGVWDWH JRYHUQPHQWVKDYHFODVVLILHGFHUWDLQSROOXWDQWVDVKD]DUGRXVDLUSROOXWDQWV +$3V
RUWR[LFDLU
FRQWDPLQDQWV
7$&V
VXFKDVDVEHVWRVDQGGLHVHOSDUWLFXODWHPDWWHU
'30

6DQ)UDQFLVFR%D\$UHD$LU%DVLQ
7KHSURSRVHGSURMHFWLVORFDWHGLQWKH6DQ)UDQFLVFR%D\$UHD$LU%DVLQ 6)%$$%
DQDUHDRI
QRQDWWDLQPHQWIRUERWKWKHKRXUDQGKRXUVWDWHR]RQHVWDQGDUGVDQGWKHQDWLRQDOKRXU 30 VWDQGDUG7KH6)%$$%LVFRPSULVHGRIQLQHFRXQWLHV DOORI$ODPHGD&RQWUD&RVWD
6DQWD&ODUD6DQ)UDQFLVFR6DQ0DWHR0DULQ1DSDDQGWKHVRXWKHUQSRUWLRQVRI6RODQRDQG 6RQRPD,Q6DQ0DWHR&RXQW\30H[FHHGVWKHQDWLRQDOVWDQGDUGRQO\RQDERXWRQHGD\ HDFK\HDU
%$$40'D

7KH6DQ)UDQFLVFR%D\DUHD,VJHQHUDOO\FKDUDFWHUL]HGE\D0HGLWHUUDQHDQFOLPDWHZLWKZDUP GU\VXPPHUVDQGFRROGDPSZLQWHUV'XULQJWKHVXPPHUGD\WLPHKLJKWHPSHUDWXUHVQHDUWKH

8.a
November 14, 2022

Packet Pg. 259

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
FRDVWDUHSULPDULO\LQWKHPLGVZKHUHDVDUHDVIDUWKHULQODQGDUHW\SLFDOO\LQWKHKLJKVWR ORZ
V1LJKWWLPHORZWHPSHUDWXUHVRQDYHUDJHDUHLQWKHPLGVDORQJWKHFRDVWDQGORZWR PLGVLQODQG
7KH0HGLWHUUDQHDQFOLPDWHLVVHHQDORQJPRVWRIWKH:HVW&RDVWRI1RUWK$PHULFDDQGLV SULPDULO\GXHWRD
W\SLFDOO\GRPLQDWLQJ
KLJKSUHVVXUHV\VWHPORFDWHGRIIWKHZHVWFRDVWRI
1RUWK$PHULFDRYHUWKH3DFLILF2FHDQ'XULQJWKHVXPPHUDQGIDOOPRQWKVWKHKLJKSUHVVXUH ULGJHLVDWLWVVWURQJHVWDQGWKHUHIRUHSURYLGHVDPRUHVWDEOHDWPRVSKHUH:DUPWHPSHUDWXUHV DQGDVWDEOHDWPRVSKHUHDVVRFLDWHGZLWKWKHKLJKSUHVVXUHULGJHSURYLGHIDYRUDEOHFRQGLWLRQV IRUWKHIRUPDWLRQRISKRWRFKHPLFDOSROOXWDQWV
HJ2
DQGVHFRQGDU\SDUWLFXODWHV
HJ
QLWURJHQR[LGHV
12[
DQG62

9DU\LQJWRSRJUDSK\DQGOLPLWHGDWPRVSKHULFPL[LQJWKURXJKRXWWKH6)%$$%UHVWULFWDLU PRYHPHQWUHVXOWLQJLQUHGXFHGGLVSHUVLRQDQGKLJKHUFRQFHQWUDWLRQVRIDLUSROOXWDQWV7KH 6)%$$%LVPRVWVXVFHSWLEOHWRDLUSROOXWLRQGXULQJWKHVXPPHUZKHQFRROPDULQHDLUIORZLQJ WKURXJKWKH*ROGHQ*DWHFDQEHFRPHWUDSSHGXQGHUDOD\HURIZDUPHUDLU DSKHQRPHQRQ
NQRZQDVDQLQYHUVLRQ
DQGLVSUHYHQWHGIURPHVFDSLQJWKHYDOOH\VDQGED\VFUHDWHGE\WKH &RDVW5DQJHV
6HQVLWLYH5HFHSWRUV
$VHQVLWLYHUHFHSWRULVGHILQHGE\WKH%D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW %$$40'
DVD
IDFLOLW\RUODQGXVHWKDWLQFOXGHPHPEHUVRIWKHSRSXODWLRQWKDWDUHSDUWLFXODUO\VHQVLWLYHWRWKH HIIHFWVRIDLUSROOXWLRQVXFKDVFKLOGUHQVHQLRUVRUSHRSOHZLOOLOOQHVVHV %$$40'E

7KHVHW\SLFDOO\LQFOXGHUHVLGHQFHVKRVSLWDOVDQGVFKRROV7KHVHQVLWLYHUHFHSWRUVZLWKLQ IHHWRIWKH3URMHFWVLWHLQFOXGH

x 5HVLGHQWLDOGZHOOLQJXQLWVWKH FORVHVWRIZKLFKDUHDSSUR[LPDWHO\IHHWZHVWRIWKH SURMHFWVLWHERXQGDU\RQ6SULQJILHOG'ULYH5HVLGHQWLDOUHFHSWRUVDUHDOVRORFDWHG VRXWKZHVWRIWKHSURMHFWVLWHRQ+ROO\6WUHHWDQG%D\SRUW&RXUWDQGQRUWKZHVWRIWKH SURMHFWVLWHRQ6\OYDQ'ULYH
x $6XWWHU+HDOWKXUJHQWFDUHDQGRXWSDWLHQWPHGLFDOIDFLOLW\D SSUR[LPDWHO\IHHWQRUWK RIWKHSURMHFWVLWH
x /DXUHROD3DUNLVDSSUR[LPDWHO\IHHWVRXWKRIWKHSURMHFW VLWH 5HJXODWRU\6HWWLQJ
&$5%,Q8VH2II5RDG'LHVHO9HKLFOH5HJXODWLRQ
2Q-XO\&$5%DGRSWHGDUHJXODWLRQWRUHGXFH'30DQG12 [HPLVVLRQVIURPLQXVH

H[LVWLQJ
RIIURDGKHDY\GXW\GLHVHOYHKLFOHVLQ&DOLIRUQLD6XFKYHKLFOHVDUHXVHGLQ FRQVWUXFWLRQPLQLQJDQGLQGXVWULDORSHUDWLRQV7KLVUHJXODWLRQDSSOLHVWRDOORIIURDGGLHVHO YHKLFOHVRYHUKRUVHSRZHU
KS
XVHGLQ&DOLIRUQLDDQGPRVWWZRHQJLQHYHKLFOHV
H[FHSWRQ
URDGWZRHQJLQHVZHHSHUV
ZKLFKDUHVXEMHFWWRWKH5HJXODWLRQIRU,Q8VH2II5RDG'LHVHO )XHOHG)OHHWV
2II5RDGUHJXODWLRQ
$GGLWLRQDOO\YHKLFOHVWKDWDUHUHQWHGRUOHDVHG
UHQWDORU
OHDVHGIOHHWV
DUHLQFOXGHGLQWKLVUHJXODWLRQ7KLVUHJXODWLRQ

x ,PSRVHVOLPLWVRQLGOLQJUHTXLUH VDZULWWHQLGOLQJSROLF\DQ GUHTXLUHVDGLVFORVXUHZKHQ VHOOLQJYHKLFOHV

x 5HTXLUHVDOORIIURDGGLHVHOYHKLFOHVRYHUKRUVHSRZHUEHUH SRUWHGWR&$5% XVLQJWKH
'LHVHO2II5RDG2QOLQH5HSRUW6\VWHP'225V
DQGODEHOHG

x 5HVWULFWVWKHDGGLQJRIROGHU YHKLFOHVLQWRIOHHWV
DQG
x 5HTXLUHVIOHHWVWRUHGXFHWKHLUHPLVVLRQVE\UHWLULQJUHSODFL QJRUUHSRZHULQJROGHU HQJLQHVRULQVWDOOLQJ9HULILHG'LHVHO(PLVVLRQ&RQWURO6WUDWHJLHV9'(&6 LHH[KDXVW

UHWURILWV

8.a
November 14, 2022

Packet Pg. 260

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&$5%,Q8VH2II5RDG'LHVHO9HKLFOH5HJXODWLRQ
&$5%¶V,Q8VH+HDY\'XW\'LHVHO)XHOHGUHJXODWLRQ
DOVRNQRZQDVWKH7UXFNDQG%XV
5HJXODWLRQ
LVLQWHQGHGWRUHGXFHHPLVVLRQRI12[30DQGRWKHUFULWHULDSROOXWDQWVJHQHUDWHG IURPH[LVWLQJRQURDGGLHVHOYHKLFOHVRSHUDWLQJLQ&DOLIRUQLD7KHUHJXODWLRQDSSOLHVWRQHDUO\DOO GLHVHOIXHOHGWUXFNVDQGEXVHVZLWKDJURVVYHKLFOHZHLJKWUDWLQJ *9:5
JUHDWHUWKDQ
SRXQGVWKDWDUHSULYDWHO\RUIHGHUDOO\RZQHGDQGIRUSULYDWHO\DQGSXEOLFO\RZQHGVFKRROEXVHV +HDYLHUWUXFNVDQGEXVHVZLWKD*9:5JUHDWHUWKDQSRXQGVPXVWFRPSO\ZLWKD VFKHGXOHE\HQJLQHPRGHO\HDURURZQHUVFDQUHSRUWWRVKRZFRPSOLDQFHZLWKPRUHIOH[LEOH RSWLRQV)OHHWVFRPSO\LQJZLWKWKHKHDYLHUWUXFNVDQGEXVHVVFKHGXOHPXVWLQVWDOOWKHEHVW DYDLODEOH30ILOWHURQ

PRGHO\HDUDQGQHZHUHQJLQHVDQGUHSODFHWKHYHKLFOH\HDUVODWHU 7UXFNVZLWK

PRGHO\HDUDQGROGHUHQJLQHVKDGWREHUHSODFHGVWDUWLQJ 5HSODFHPHQWVZLWKDPRGHO\HDURUQHZHUHQJLQHVPHHWWKHILQDOUHTXLUHPHQWVEXW RZQHUVFDQDOVRUHSODFHWKHHTXLSPHQWZLWKXVHGWUXFNVWKDWKDYHDIXWXUHFRPSOLDQFHGDWH DV
VSHFLILHGLQUHJXODWLRQ
%\DOOWUXFNVDQGEXVHVPXVWKDYHDWOHDVWPRGHO\HDU HQJLQHVZLWKIHZH[FHSWLRQV
%D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW
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
7DEOH
3RWHQWLDOO\$SSOLFDEOH%$$40'5XOHVDQG5HJXODWLRQV
5HJXODWLRQ 5XOH 'HVFULSWLRQ
*HQHUDO
3URYLVLRQVDQG
'HILQLWLRQV

*HQHUDO3URYLVLRQVDQG
'HILQLWLRQV
±3XEOLF1XLVDQFH
(VWDEOLVKHVWKDWQRSHUVRQ
VKDOOGLVFKDUJHTXDQWLWLHVRIDLUFRQWDPLQDQWVRU
RWKHUPDWHULDOVZKLFKFDXVHLQMXU\GHWULPHQW
QXLVDQFHRUDQQR\DQFHWRDQ\FRQVLGHUDEOH
QXPEHURUSHUVRQ
RUWKHSXEOLF
RUZKLFK
HQGDQJHUVWKHFRPIRUWUHSRVHKHDOWKRUVDIHW\RI
DQ\VXFKSHUVRQRUWKHSXEOLF
3HUPLWV 1HZ6RXUFH5HYLHZ 3URYLGHVIRUWKHUHYLHZRIQHZDQGPRGLILHG VRXUFHVRISROOXWDQWV
UHTXLUHVXVHRI%HVW
$YDLODEOH&RQWURO7HFKQRORJ\DQGHPLVVLRQV
RIIVHWVWRDFKLHYHQRQHWLQFUHDVHLQQRQDWWDLQPHQW

SROOXWDQWV
LPSOHPHQWV3UHYHQWLRQRI6LJQLILFDQW
'HWHULRUDWLRQUHYLHZIRUDWWDLQPHQWSROOXWDQWV
±3HUPLWV ±1HZ6RXUFH5HYLHZRI
7R[LF$LU&RQWDPLQDQWV
3URYLGHVIRUWKHUHYLHZRIQHZDQGPRGLILHG
VRXUFHVRIWR[LFDLUFRQWDPLQDQWV
UHTXLUHVXVHRI
%HVW$YDLODEOH&RQWURO7HFKQRORJ\IRUVRXUFHVWKDW
KDYHDULVNDERYHFHUWDLQWKUHVKROGVDQGOLPLWV
WRWDOSURMHFWULVNVWRLQDPLOOLRQFDQFHUULVN
FKURQLFKD]DUGLQGH[DQG
DFXWHKD]DUG
LQGH[

8.a
November 14, 2022

Packet Pg. 261

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7DEOH
3RWHQWLDOO\$SSOLFDEOH%$$40'5XOHVDQG5HJXODWLRQV
5HJXODWLRQ 5XOH 'HVFULSWLRQ
±3DUWLFXODWH
0DWWHU
±*HQHUDO5HTXLUHPHQWV /LPLWVYLVLEOHSDUWLFXODWHPDWWHUHPLVVLRQV ±3DUWLFXODWH
0DWWHU
±3URKLELWLRQRI7UDFNRXW /LPLWVWKHTXDQWLW\RISDUWLFXODWHPDWWHUWKURXJK FRQWURORIWUDFNRXWRIVROLGPDWHULDOVRQSDYHG
SXEOLFURDGVIURPFRQVWUXFWLRQVLWHVWKDWDUH
JUHDWHUWKDQRQHDFUHLQVL]H
±2UJDQLF
&RPSRXQGV
±$UFKLWHFWXUDO&RDWLQJV 6HWVIRUWK92&OLPLWDWLRQVDQGUHTXLUHPHQWVIRU DUFKLWHFWXUDOFRDWLQJV)ODWQRQIODWDQGQRQIODW± KLJKJODVVFRDWLQJVDUHUHTXLUHGWRPHHWVWDQGDUGV
RIDQGJUDPVRI92&SHUOLWHU
J/

UHVSHFWLYHO\7UDIILFPDUNLQJFRDWLQJVDUHUHTXLUHG
WRPHHWDVWDQGDUGRIJ/
2GRURXV
VXEVWDQFHV
2GRURXV6XEVWDQFHV (VWDEOLVKHVJHQHUDOOLPLWDWLRQVRQRGRURXV VXEVWDQFHVDQGVSHFLILFHPLVVLRQOLPLWDWLRQVRQ
FHUWDLQRGRURXVFRPSRXQGVVXFKDVDPPRQLD

±,QRUJDQLF
*DVHRXV
3ROOXWDQWV
±12[DQG&2IURP
6WDWLRQDU\,QWHUQDO
&RPEXVWLRQ(QJLQHV
/LPLWVHPLVVLRQVRI12[DQG&2IURPVWDWLRQDU\
LQWHUQDOJDVFRPEXVWLRQHQJLQHVPRUHWKDQ
EUDNHKRUVHSRZHU
±+D]DUGRXV
3ROOXWDQWV
±$VEHVWRV'HPROLWLRQ
5HQRYDWLRQDQG
0DQXIDFWXULQJ
&RQWUROVHPLVVLRQVRIDVEHVWRVWRWKHDWPRVSKHUH
GXULQJGHPROLWLRQ
±0RELOH6RXUFH
0LVVLRQV
5HGXFWLRQ
0HDVXUHV
±&RPPXWHU%HQHILWV
3URJUDP
5HTXLUHVHPSOR\HUVZLWKRUPRUHIXOOWLPH
HPSOR\HHVLQWKH%D\$UHDWRSURYLGHFRPPXWHU
EHQHILWVWRWKHLUHPSOR\HHV
6RXUFH
%$$40'

2Q$SULO
WKH%$$40'DGRSWHGLWV6SDUHWKH$LU&RROWKH&OLPDWH&OHDQ$LU3ODQ

&OHDQ$LU3ODQ
7KH&OHDQ$LU3ODQXSGDWHVWKHPRVWUHFHQW%D\$UHDR]RQHSODQWKH &OHDQ$LU3ODQLQIXOILOOPHQWRIVWDWHR]RQHSODQQLQJUHTXLUHPHQWV7KH3ODQIRFXVHVRQ WKHWKUHHIROORZLQJJRDOV

x $WWDLQDOOVWDWHDQGQDWLRQDO DLUTXDOLW\VWDQGDUGV
x (OLPLQDWHGLVSDULWLHVDPRQJ%D\$UHDFRPPXQLWLHVLQFDQFHUKHD OWKULVNIURPWR[LFDLU

FRQWDPLQDQWV
DQG
x 5HGXFH%D\$UHD*+*HPLVVLRQVWR SHUFHQWEHORZ

OHYHOVE\DQG
SHUFHQWEHORZ

OHYHOVE\
7KHSODQLQFOXGHVGLVWLQFWFRQWUROPHDVXUHVWRKHOSWKHUHJLRQUHGXFHDLUSROOXWDQWVDQGKDVD ORQJWHUPVWUDWHJLFYLVLRQZKLFKIRUHFDVWVZKDWDFOHDQDLU%D\$UHDZLOOORRNOLNHLQWKH\HDU 7KHFRQWUROPHDVXUHVDJJUHVVLYHO\WDUJHWWKHODUJHVWVRXUFHRI*+*R]RQHSROOXWDQWV DQGSDUWLFXODWHPDWWHUHPLVVLRQV±WUDQVSRUWDWLRQ7KH&OHDQ$LU3ODQLQFOXGHVPRUH LQFHQWLYHVIRUHOHFWULFYHKLFOHLQIUDVWUXFWXUHRIIURDGHOHFWULILFDWLRQSURMHFWVVXFKDV&DOWUDLQDQG VKRUHSRZHUDWSRUWVDQGUHGXFLQJHPLVVLRQVIURPWUXFNVVFKRROEXVHVPDULQHYHVVHOV ORFRPRWLYHVDQGRIIURDGHTXLSPHQW
%$$40'E

8.a
November 14, 2022

Packet Pg. 262

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
'LVFXVVLRQ
:RXOGWKHSURSRVHGSURMHFW

D
&RQIOLFWZLWKRUREVWUXFWLPSOHPHQWDWLRQRIWKHDSSOLFDEOHD LUTXDOLW\SODQ" 1R,PSDFW7KHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKQRUREVWUXFWLPSOHPHQWDWLRQRIWKH%D\ $UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW
%$$40'
&OHDQ$LU3ODQ
%$$40'F
7KH
&OHDQ$LU3ODQLQFOXGHVLQFUHDVHVLQUHJLRQDOFRQVWUXFWLRQDUHDPRELOHDQGVWDWLRQDU\ VRXUFHDFWLYLWLHVDQGRSHUDWLRQVLQLWVHPLVVLRQLQYHQWRULHVDQGSODQVIRUDFKLHYLQJDWWDLQPHQW RIDLUTXDOLW\VWDQGDUGV&KDSWHURIWKH&OHDQ$LU3ODQFRQWDLQVWKH%$$40'¶VVWUDWHJ\IRU DFKLHYLQJWKHSODQ¶VFOLPDWHDQGDLUTXDOLW\JRDOV7KLVFRQWUROVWUDWHJ\LVWKHEDFNERQHRIWKH &OHDQ$LU3ODQ
7KHSURSRVHGSURMHFWZKLFKZRXOGFRQVLVWRIWKHFRQVWUXFWLRQDQGRSHUDWLRQRIDOLIHVFLHQFHV EXLOGLQJZRXOGQRWFRQIOLFWZLWKRUREVWUXFWLPSOHPHQWDWLRQRIWKH%$$40'&OHDQ$LU 3ODQ7KH&OHDQ$LU3ODQLQFOXGHVFRQWUROPHDVXUHVWKDWDUHJURXSHGLQWRQLQH FDWHJRULHV0RVWRIWKHVHFRQWUROPHDVXUHVZRXOGQRWDSSO\WRWKHSURMHFWEHFDXVHWKH\DUH LPSOHPHQWHGDWWKHORFDODQGUHJLRQDOORFDOE\PXQLFLSDOJRYHUQPHQWVDQGRUWKH%$$40' 7DEOHVXPPDUL]HVWKHSURMHFW¶VFRQVLVWHQF\ZLWKSRWHQWLDOO\DSSOLFDEOHFRQWUROVWUDWHJLHV IURPWKH&OHDQ$LU3ODQ
E

7DEOH
%$$40'&OHDQ$LU3ODQ&RQWURO0HDVXUHV&RQVLVWHQF\ 5HJXODWLRQ 'HVFULSWLRQ
7UDQVSRUWDWLRQ&RQWURO0HDVXUHV
75
&OHDQ$LU7HOHZRUNLQJ,QLWLDWLYH &RQVLVWHQW7KHSURMHFWZRXOGFRPSO\ZLWKWKH UHTXLUHPHQWVRIWKH&LW\RI6DQ&DUOR¶V0XQLFLSDO
&RGHLQFOXGLQJ&KDSWHU7UDQVSRUWDWLRQ
'HPDQG0DQDJHPHQW7KHSURMHFWLVUHTXLUHGWR
DFKLHYHDWULSJHQHUDWLRQUHGXFWLRQRISHUFHQW
DQGZRXOGIROORZD7'0SODQWKDWLQFOXGHV
WHOHZRUNLQJ6HH$SSHQGL['IRUWKH$SSOLFDQW¶V
7'0SODQ
75
7ULS5HGXFWLRQ3URJUDPV &RQVLVWHQW7KHSURMHFWZRXOGFRPSO\ZLWKWKH UHTXLUHPHQWVRIWKH&LW\RI6DQ&DUOR¶V0XQLFLSDO
&RGHLQFOXGLQJ&KDSWHU7UDQVSRUWDWLRQ
'HPDQG0DQDJHPHQW7KHSURMHFWLVUHTXLUHGWR
DFKLHYHDWULSJHQHUDWLRQUHGXFWLRQRISHUFHQW
DQGZLOOIROORZD7'0SODQWKDWLQFOXGHV
WHOHZRUNLQJ
VHH$SSHQGL['

75 %LF\FOHDQG3HGHVWULDQ$FFHVVDQG
)DFLOLWLHV
&RQVLVWHQW7KHSURMHFWZRXOGSURYLGH
DSSUR[LPDWHO\VSDFHVIRUELF\FOHSDUNLQJ7KH
SURMHFWZRXOGDOVRLQFOXGHWKHFRQVWUXFWLRQRID
SHGHVWULDQSDWKZD\WKDWZRXOGSURYLGHSHGHVWULDQ
DFFHVVWRWKHSURMHFWVLWHIURP+ROO\6WUHHWDQG
,QGXVWULDO5RDG
%XLOGLQJ&RQWURO0HDVXUHV
%/
*UHHQ%XLOGLQJV &RQVLVWHQW7KHSURMHFWZRXOGEHGHVLJQHGWR &DO*UHHQ&RGHVWDQGDUGV
%/
8UEDQ+HDW,VODQG0LWLJDWLRQ &RQVLVWHQW7KHSURMHFWZRXOGEHVXEMHFWWRWKH
7LWOH%XLOGLQJ&RGHZKLFKZRXOGUHTXLUH
WKHSURSRVHGEXLOGLQJVWRKDYHURRIVWKDWPHHWWKH
DJHGVRODUUHIOHFWDQFHDQGWKHUPDOHPLWWDQFH

8.a
November 14, 2022

Packet Pg. 263

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7DEOH
%$$40'&OHDQ$LU3ODQ&RQWURO0HDVXUHV&RQVLVWHQF\ 5HJXODWLRQ 'HVFULSWLRQ
UHTXLUHPHQWVVSHFLILHGLQ&DO*UHHQ&RGH6HFWLRQ

D

LL

:DVWH0DQDJHPHQW&RQWURO0HDVXUHV
:$
5HF\FOLQJDQG:DVWH5HGXFWLRQ &RQVLVWHQW7KHSURMHFWZRXOGGLYHUWFRQVWUXFWLRQ ZDVWHFRQVLVWHQWZLWK&DO*UHHQ&RGH
UHTXLUHPHQWV
$VVKRZQLQ7DEOHWKHSURMHFWZRXOGEHFRQVLVWHQWZLWKDSSOLFDEOHFRQWUROPHDVXUHV FRQWDLQHGLQWKH&OHDQ$LU3ODQ7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW E
5HVXOWLQDFXPXODWLYHO\FRQVLGHUDEOHQHWLQFUHDVHRIDQ\FU LWHULDSROOXWDQWIRU ZKLFKWKHSURMHFWUHJLRQLVQRQDWWDLQPHQWXQGHUDQDSSOLFDEOH IHGHUDORUVWDWH DPELHQWDLUTXDOLW\VWDQGDUG"
/HVV7KDQ6LJQLILFDQW,PSDFW7KHSURSRVHGSURMHFWZRXOGJHQHUDWHERWKVKRUWWHUP FRQVWUXFWLRQHPLVVLRQVDQGORQJWHUPRSHUDWLRQDOHPLVVLRQV7KHSURMHFW¶VSRWHQWLDOHPLVVLRQV ZHUHHVWLPDWHGXVLQJWKH&DOLIRUQLD(PLVVLRQV(VWLPDWRU0RGHO &DO((0RG
9HUVLRQ
$VGHVFULEHGLQPRUHGHWDLOEHORZWKHSURSRVHGSURMHFWZRXOGQRWJHQHUDWHVKRUWWHUPRUORQJ WHUPHPLVVLRQVWKDWH[FHHG%$$40'UHFRPPHQGHGFULWHULDDLUSROOXWDQWWKUHVKROGV &RQVWUXFWLRQ(PLVVLRQV
7KHSURSRVHGSURMHFWLQYROYHVWKHGHFRQVWUXFWLRQDQGRIIKDXORIWKHH[LVWLQJVWRUDJHIDFLOLW\DQG WKHFRQVWUXFWLRQRIDQHZODERUDWRU\DQGRIILFHEXLOGLQJZLWKJURXQGOHYHODQGVXEWHUUDQHDQ SDUNLQJ$VGHVFULEHGLQ6HFWLRQFRQVWUXFWLRQDFWLYLWLHVDUHDQWLFLSDWHGWREHJLQLQ DQGODVWDSSUR[LPDWHO\PRQWKV&RQVWUXFWLRQDFWLYLWLHVDUHDQWLFLSDWHGWRLQFOXGHGHPROLWLRQ
VLWHSUHSDUDWLRQZKLFKZRXOGFRQVLVWRIVKRULQJGHZDWHULQJDQGPDVVH[FDYDWLRQZRUNIRUWKH XQGHUJURXQGSDUNLQJVWUXFWXUH
JUDGLQJ
EXLOGLQJFRQVWUXFWLRQ
IRXQGDWLRQDQGYHUWLFDO
FRQVWUXFWLRQZRUN

SDYLQJ
DQGDUFKLWHFWXUDOFRDWLQJ&RQVWUXFWLRQHPLVVLRQVZRXOGEH JHQHUDWHGRQVLWHGXULQJWKHXVHRIKHDY\GXW\RIIURDGFRQVWUXFWLRQHTXLSPHQW HJ
H[FDYDWRUVJUDGHUVIRUNOLIWVHWF
DQGRIIVLWHGXULQJZRUNHUYHQGRU
FRQVWUXFWLRQPDWHULDO
GHOLYHU\
DQGVRLOKDXOLQJWULSV
7KHSURSRVHGSURMHFW¶VSRWHQWLDOFRQVWUXFWLRQHPLVVLRQVZHUHHVWLPDWHGXVLQJGHIDXOW &DO((0RGDVVXPSWLRQVZLWKWKHIROORZLQJSURMHFWVSHFLILFPRGLILFDWLRQV
x &RQVWUXFWLRQ3KDVHVDQG6FKHGXOH
&DO((0RGGHIDXOWDVVXPSWLRQVIRUFRQVWUXFWLRQ
SKDVHVDQGVFKHGXOLQJZHUHDGMXVWHGWRUHIOHFWSURMHFWVSHFLILFLQIRUPDWLRQSURYLGHGE\ WKH$SSOLFDQW,QJHQHUDOSURMHFWVSHFLILFDFWLYLWLHV HJVKRULQJGHZDWHULQJHWF
ZHUH
DGGHGWRWKH&DO((0RGSURMHFWILOHDQGWKHWRWDOFRQVWUXFWLRQVFKHGXOHZDVOHQJWKHQHG WRUHIOHFW3URMHFWVSHFLILFFRQVWUXFWLRQDFWLYLWLHV
x &RQVWUXFWLRQ(TXLSPHQW
&DO((0RGGHIDXOWDVVXPSWLRQVIRUFRQVWUXFWLRQHTXLSPHQW ZHUHPRGLILHGWRUHIOHFW3URMHFWVSHFLILFFRQVWUXFWLRQDFWLYLWLHVSKDVLQJDQGWLPHOLQHV x %XLOGLQJ'HPROLWLRQ
7KHPRGHOLQJDVVXPHGVTXDUHIHHWRIEXLOGLQJVSDFH ZRXOGEHGHPROLVKHGDQGRIIKDXOHGWRDFFRXQWIRUWKHH[LVWLQJVHOIVWRUDJHIDFLOLW\WKDWLV FXUUHQWO\ORFDWHGRQVLWH
x 6RLO+DXOLQJ
%DVHGRQLQIRUPDWLRQIURPWKH$SSOLFDQWWKHSURMHFWZRXOGLQFOXGH KDXOLQJWULSVZKLFKZRXOGH[SRUW
FXELF\DUGVRIVRLOIURPWKHVLWH
x )XJLWLYH'XVW&RQWURO0HDVXUHV
)XJLWLYHGXVWFRQWUROPHDVXUHVFRQVLVWHQWZLWK
%$$40'JXLGHOLQHVZHUHLQFRUSRUDWHGLQWKHFRQVWUXFWLRQHPLVVLRQVPRGHOLQJ VHHDOVR
WKH&2$GLVFXVVLRQEHORZ
6SHFLILFDOO\WKHPRGHODVVXPHVWKHVLWHZRXOGEHZDWHUHG WZLFHDGD\UHGXFLQJIXJLWLYHGXVWHPLVVLRQVE\

8.a
November 14, 2022

Packet Pg. 264

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHSURMHFW¶VHVWLPDWHGFRQVWUXFWLRQFULWHULDDLUSROOXWDQWHPLVVLRQVDUHSUHVHQWHGLQ7DEOH 5HIHUWR$SSHQGL[%DQG$SSHQGL[%IRUGHWDLOHG&DO((0RGDVVXPSWLRQVDQGRXWSXWILOHV 7DEOH
(VWLPDWHG3URMHFW&RQVWUXFWLRQ&ULWHULD$LU3ROOXWDQW(PLVVLRQV <HDU6FHQDULR
$

3ROOXWDQW(PLVVLRQV
7RQV3HU<HDU

52* 12[ &2
30 30
'XVW
%
([KDXVW 'XVW
%
([KDXVW
810,7,*$7('
<HDU
<HDU

0,7,*$7('
&

<HDU
<HDU

<HDU6FHQDULR
$

3ROOXWDQW(PLVVLRQV
$YHUDJH3RXQGVSHU'D\

'

52* 12[ &2
30 30
'XVW
%
([KDXVW 'XVW
%
([KDXVW
810,7,*$7('
<HDU

<HDU

0,7,*$7('
&

<HDU
<HDU

%$$40'&(4$7KUHVKROG %03V %03V
3RWHQWLDOO\6LJQLILFDQW
,PSDFW" 1R 1R 1R 1R
%
1R 1R
%
1R
%$$40'EDQG0,*6HH$SSHQGL[%DQG$SSHQGL[%

$
(PLVVLRQVHVWLPDWHVDUHEDVHGRQFXPXODWLYHWLPHRIFRQVWUXFWL RQ LHRQH\HDU±GD\V±WKDWPD\EH
VSOLWDFURVVPXOWLSOHFDOHQGDU\HDUV
<HDULQFOXGHVHPLVVLRQVIURPDQGZKLOH<HDULQFOXGHV HPLVVLRQVIURP
VHHIRRWQRWH
'
EHORZ
IRUWRWDODFWLYHFRQVWUXFWLRQGD\VIRUHDFK\HDURIFRQVWUXFWLRQ DQDO\VLV7KH&DO((0RGDQDO\VLV\HDUVUHIOHFWDQROGHUHTXLSPHQWIOHHWWKDWZRXOGJHQHUDWHPRUHHPLVVLRQV WKDQQHZHTXLSPHQWDQGWKHUHIRUHWKHVHHPLVVLRQVHVWLPDWHVDUHFRQVLGHUHGFRQVHUYDWLYH

%
)RUDOOSURMHFWVWKH%$$40'UHFRPPHQGVLPSOHPHQWLQJHLJKWEDV LFFRQVWUXFWLRQEHVWPDQDJHPHQW SUDFWLFHV
%03V
WRFRQWUROIXJLWLYHGXVWIURPFRQVWUXFWLRQDFWLYLWLHV$VGHVFULEHGLQWKLVVHFWLRQWKH SURSRVHGSURMHFWZRXOGEHUHTXLUHGWRLPSOHPHQWWKH%$$40'¶VIXJLWLYHGXVW%03VDVD&2$UHQGHULQJ WKLVLPSDFWOHVVWKDQVLJQLILFDQW

&
$VGLVFXVVHGXQGHUUHVSRQVHF
WKHSURSRVHGSURMHFWZRXOGEHUHTXLUHGWRLPSOHPHQW0LWLJDWLRQ0HDVXUH $,5WRUHGXFHSRWHQWLDOKHDOWKULVNVIURPUHFHSWRUH[SRVXUHWR'307KHVHHPLVVLRQVHVWLPDWHVUHIOHFW FRPSOLDQFHZLWKWKH%$$40'IXJLWLYHGXVW%03&2$DQG0LWLJDWLRQ0HDVXUH$,5

'
$YHUDJHGDLO\HPLVVLRQVDVVXPHDFWLYHFRQVWUXFWLRQGD\VIRU<HDU
DQGDFWLYHFRQVWUXFWLRQ
GD\VIRU<HDU

$VVKRZQLQ7DEOHFRQVWUXFWLRQHPLVVLRQVDVVRFLDWHGZLWKWKHSURSRVHGSURMHFWZRXOGEH EHORZDOO%$$40'VLJQLILFDQFHWKUHVKROGVIRUFULWHULDDLUSROOXWDQWHPLVVLRQV KRZHYHUDV
LQGLFDWHGLQWKH%$$40'¶V&(4$*XLGHOLQHVIXJLWLYHGXVWHPLVVLRQVDUHFRQVLGHUHGSRWHQWLDOO\ VLJQLILFDQWUHJDUGOHVVRIWKHTXDQWLW\RI30RU30HPLWWHGXQOHVVWKH%$$40'¶VHLJKW UHFRPPHQGHGIXJLWLYHGXVW%03VDUHLPSOHPHQWHGGXULQJFRQVWUXFWLRQDFWLYLWLHV %$$40'
ESJ

8.a
November 14, 2022

Packet Pg. 265

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$VD&RQGLWLRQRI$SSURYDO
&2$
IRUWKHSURSRVHGSURMHFWWKH&LW\ZRXOGUHTXLUHWKH
LPSOHPHQWDWLRQRIWKH%$$40'¶VHLJKWUHFRPPHQGHGIXJLWLYHGXVW%03VGXULQJFRQVWUXFWLRQ DFWLYLWLHV
VHH7DEOH

&2$
7KHSURMHFWVKDOOLPSOHPHQW%$$40'¶V&RQVWUXFWLRQ)XJLWLYH'XVW%HVW 0DQDJHPHQW3UDFWLFHVDQGVKDOOSURYLGHQRWHVRQWKHSODQVVXEPLWWHGWRWKH%XLOGLQJ 'LYLVLRQIRUSHUPLWV7KHSURMHFWVKDOOLPSOHPHQW%$$40'¶V&RQVWUXFWLRQ)XJLWLYH'XVW %HVW0DQDJHPHQW3UDFWLFHVDQGVKDOOSURYLGHQRWHVRQWKHSODQVVXEPLWWHGWRWKH %XLOGLQJ'LYLVLRQIRUSHUPLWV
2SHUDWLRQDO(PLVVLRQV
8SRQFRPSOHWLRQRIFRQVWUXFWLRQDFWLYLWLHVWKHSURSRVHGSURMHFWZRXOGJHQHUDWHHPLVVLRQVRI UHJXODWHGDLUSROOXWDQWVIURP

x ³$UHD´6RXUFHV7KHSURSRVHGODQGXVHZRXOGJHQHUDWHHPLVVLRQVIURPVPDOODUHD VRXUFHVLQFOXGLQJODQGVFDSLQJHTXLSPHQWDQGWKHXVHRIFRQVXPHUSURGXFWV HJ
SDLQWVFOHDQHUVDQGIHUWLOL]HUV
WKDWUHVXOWLQWKHHYDSRUDWLRQRIFKHPLFDOVLQWRWKH
DWPRVSKHUHGXULQJSURGXFWXVH
x (QHUJ\8VHDQG&RQVXPSWLRQ7KHSURSRVHGODQGXVHZRXOGJHQHUDWHHPLVVLRQVIURP WKHFRPEXVWLRQRIQDWXUDOJDVLQZDWHUDQGVSDFHKHDWLQJHTXLSPHQW x 0RELOH6RXUFHV7KHSURSRVHGODQGXVHZRXOGJHQHUDWHHPLVVLRQVIURPYHKLFOH WUDYHOLQJWRDQGIURPWKHSURMHFWVLWH
7KHSURSRVHGSURMHFW¶VRSHUDWLRQDOHPLVVLRQVZHUHHVWLPDWHGXVLQJ&DO((0RGYHUVLRQ 7KHHPLVVLRQVHVWLPDWHVDUHEDVHGRQWKH3URMHFW¶VILUVW\HDURIRSHUDWLRQ SUHVXPHG
WREH
XVLQJGHIDXOWGDWDDVVXPSWLRQVFRQWDLQHGLQ&DO((0RGZLWKWKHIROORZLQJSURMHFW VSHFLILFPRGLILFDWLRQV

x 7ULS*HQHUDWLRQ2SHUDWLRQDOZHHNGD\WULSJHQHUDWLRQUDWHVZHUHDGMXVWHGWRUHIOHFWWKH WULSJHQHUDWLRQSUHSDUHGE\+H[DJRQ7UDQVSRUWDWLRQ&RQVXOWDQWV +H[DJRQ
7KH
GHIDXOWZHHNHQGWULSJHQHUDWLRQUDWHVZHUHDOVRDGMXVWHGWREHFRQVLVWHQWZLWK7'0 UHTXLUHPHQWV%DVHGRQ+H[DJRQ¶VWULSJHQHUDWLRQHVWLPDWHVWKHOLIHVFLHQFHVEXLOGLQJ ZRXOGJHQHUDWHDSSUR[LPDWHO\
WRWDOGDLO\YHKLFOHWULSVSHUZHHNGD\%DVHGRQ
&DO((0RGHVWLPDWHVWKHSURSRVHGSURMHFWLVHVWLPDWHGWRJHQHUDWHDSSUR[LPDWHO\ DQQXDO907
x 9HKLFOH(PLVVLRQV)DFWRUV7KHDQQXDOYHKLFOHHPLVVLRQIDFWRUVZHUHXSGDWHGEDVHG RQGHULYHG(0)$&HPLVVLRQUDWHVIRUWKH6DQ0DWHR
6)
VXEDUHDFRQVLVWHQWZLWK
WKHPHWKRGRORJ\GHVFULEHGLQWKH&DO((0RG8VHU¶V*XLGH$SSHQGL[$7KHGHULYHG HPLVVLRQIDFWRUVDUHIRU\HDUWKH3URMHFW¶VILUVWRSHUDWLRQDO\HDU x 6WDWLRQDU\6RXUFH$QKSGLHVHOHPHUJHQF\JHQHUDWRURSHUDWLQJKRXUV\HDUZDV DGGHGWRWKHPRGHO
7KHSURSRVHGSURMHFW¶VHVWLPDWHGRSHUDWLRQDOHPLVVLRQVDUHSUHVHQWHGLQ7DEOH$VVKRZQ LQ7DEOHRSHUDWLRQDOFULWHULDDLUSROOXWDQWHPLVVLRQVDVVRFLDWHGZLWKWKHSURSRVHGSURMHFW ZRXOGEHEHORZWKH%$$40'UHJLRQDOWKUHVKROGV7KHUHIRUHRSHUDWLRQRIWKHSURSRVHGSURMHFW ZRXOGQRWJHQHUDWHRSHUDWLRQDOUHODWHGHPLVVLRQVWKDWH[FHHG%$$40'WKUHVKROGVDQG LPSDFWVZRXOGEHOHVVWKDQVLJQLILFDQW
F
([SRVHVHQVLWLYHUHFHSWRUVWR VXEVWDQWLDOSROOXWDQWFRQFHQWUDWLRQV" /HVV7KDQ6LJQLILFDQW,PSDFWZLWK0LWLJDWLRQ,QFRUSRUDWHG$VGHVFULEHGLQ6HFWLRQ VHQVLWLYHUHVLGHQWLDOUHFHSWRUVDUHJHQHUDOO\ORFDWHGZHVWDQGVRXWKZHVWRIWKHSURMHFWVLWHDQGD PHGLFDOIDFLOLW\LVORFDWHGQRUWKRIWKHSURMHFWVLWH3URMHFWUHODWHGFRQVWUXFWLRQDFWLYLWLHVZRXOG HPLW30IURPHTXLSPHQWH[KDXVW1HDUO\DOOWKHSURMHFW¶V30HPLVVLRQVIURPHTXLSPHQW H[KDXVWZRXOGEHGLHVHOSDUWLFXODWHPDWWHU
'30
D7$&$FFRUGLQJO\DKHDOWKULVNDVVHVVPHQW

8.a
November 14, 2022

Packet Pg. 266

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW

+5$
ZDVSUHSDUHGWRDVVHVVSRWHQWLDOULVNVDVVRFLDWHGZLWKVHQVLWLYHUHFHSWRUH[SRVXUHWR '30GXULQJSURMHFWFRQVWUXFWLRQDFWLYLWLHVDVHVWLPDWHGXVLQJ&DO((0RG VHH7DEOH
7KH
FRQVWUXFWLRQ+5$HYDOXDWHG'30HPLVVLRQVDVVRFLDWHGZLWKRQDQGRIIURDGGLHVHOIXHOWUXFNV DQGHTXLSPHQW*DVROLQHIXHOYHKLFOHVHPLWYDULRXV7$&VLQPXFKVPDOOHUTXDQWLWLHVDQGKHDOWK WR[LFLW\FRPSDUHGWR'307KXVJDVROLQHIXHOHGHPLVVLRQVRXUFHVZHUHQRWLQFOXGHGLQWKH +5$
7DEOH
(VWLPDWHG3URMHFW2SHUDWLRQDO&ULWHULD$LU3ROOXWDQW(PLVVLRQV 6RXUFH
3ROOXWDQW(PLVVLRQV
7RQVSHU<HDU

52* 12[ &2 30 30
$UHD6RXUFHV

(QHUJ\'HPDQG
0RELOH6RXUFHV
6WDWLRQDU\6RXUFHV
727$/
%

%$$40'&(4$7KUHVKROG
3RWHQWLDOO\6LJQLILFDQW
,PSDFW" 1R 1R 1R 1R 1R
6RXUFH 3ROOXWDQW(PLVVLRQV
$YHUDJH3RXQGVSHU'D\

52* 12[ &2 30 30
$UHD6RXUFHV

(QHUJ\'HPDQG
0RELOH6RXUFHV
6WDWLRQDU\6RXUFHV
727$/
%

%$$40'&(4$7KUHVKROG
3RWHQWLDOO\6LJQLILFDQW
,PSDFW" 1R 1R 1R 1R 1R
%$$40'EDQG0,*6HH$SSHQGL[%DQG%

$
GRHVQRWPHDQ]HUR
UDWKHULWPHDQVOHVVWKDQEXWJUHDWHUWKDQ]HUR

%
7RWDOVPD\QRWHTXDOGXHWRURXQGLQJ
7KHSURSRVHGSURMHFWZRXOGLQYROYHGLIIHUHQWFRQVWUXFWLRQDFWLYLWLHVRFFXUULQJDWGLIIHUHQW LQWHQVLWLHVRYHUDQDSSUR[LPDWHO\PRQWKSHULRGEHJLQQLQJLQ5HFHSWRUVZRXOGEH H[SRVHGWRYDU\LQJFRQFHQWUDWLRQVRISROOXWDQWVWKURXJKRXWWKHFRQVWUXFWLRQSHULRG+HDOWKULVNV ZHUHDVVHVVHGDFFRUGLQJWRWKHUHFRPPHQGDWLRQVLQWKH%$$40'¶V5HFRPPHQGHG0HWKRGV IRU6FUHHQLQJDQG0RGHOLQJ/RFDO5LVNVDQG+D]DUGVDQG$LU7R[LFV1HZ6RXUFH5HYLHZ 3URJUDP+HDOWK5LVN*XLGHOLQHVDVZHOODVWKH2IILFHRI(QYLURQPHQWDO+HDOWK+D]DUG $VVHVVPHQW¶V$LU7R[LFV+RW6SRWV3URJUDP*XLGDQFH0DQXDO 2(++$
%$$40'

7KHJURXQGOHYHOFRQFHQWUDWLRQVRISROOXWDQWVSURGXFHGE\WKHSURMHFWGXULQJ FRQVWUXFWLRQDVHVWLPDWHGXVLQJ$(502'ZHUHXVHGWRGHULYHWKHLQGLYLGXDOH[FHVVFDQFHU ULVNDQGQRQFDUFLQRJHQLFKHDOWKKD]DUGLQGH[IURPSRWHQWLDOH[SRVXUHWR'305HIHUWR

8.a
November 14, 2022

Packet Pg. 267

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$SSHQGL[%IRUGHWDLOHG&DO((0RGDQG$(502'PRGHOLQJDVVXPSWLRQVRXWSXWILOHVDQG +5$FDOFXODWLRQV
7KHIROORZLQJVXPPDUL]HVWKHUHVXOWVRIWKHFRQVWUXFWLRQKHDOWKULVNDVVHVVPHQW3OHDVHVHH $SSHQGL[%IRUDGGLWLRQDOGHWDLOVLQFOXGLQJWKHPHWKRGRORJLHVHPSOR\HGIRUWKHGLVSHUVLRQ PRGHOLQJDQGKHDOWKULVNDVVHVVPHQW
&RQVWUXFWLRQ+5$5HVXOWV
,QGLYLGXDO&DUFLQRJHQLF5LVNIURP([SRVXUHWR'30
7KHSUHGLFWHGORFDWLRQVRIWKHDQQXDOXQPLWLJDWHGSRLQWRIPD[LPXPLPSDFW 30,
DQGWKH
PD[LPXPH[SRVHGLQGLYLGXDOUHFHSWRU
0(,5
IRU'30H[SRVXUHDUHVKRZQLQ)LJXUH±
&RQVWUXFWLRQ+HDOWK5LVN$VVHVVPHQW
0(,5DQG30,
)LJXUH±&RQVWUXFWLRQ+HDOWK5LVN$VVHVVPHQW
0(,5DQG30,

7KHSUHGLFWHG30,LVJHQHUDOO\ORFDWHGHDVWRIWKHSURMHFWVLWHEHWZHHQWKHSURMHFWVLWHDQG +ROO\6WUHHW6LQFHWKH30,IRU'30H[SRVXUHLVORFDWHGRQODQGWKDWLVQRWRFFXSLHGE\D UHFHSWRURQDSHUPDQHQWEDVLVOLIHWLPHH[FHVVFDQFHUULVNVDQGFKURQLFQRQFDQFHUKHDOWK KD]DUGVZKLFKDUHEDVHGRQH[SRVXUHWRDQQXDODYHUDJHSROOXWDQWFRQFHQWUDWLRQVZHUHQRW HVWLPDWHGIRUWKHPRGHOHG30,ORFDWLRQ$FFRUGLQJO\KHDOWKULVNVZHUHDVVHVVHGDWWKHPRGHOHG
7KH$(502'GLVSHUVLRQPRGHOLVDQ(3$DSSURYHGDQG%$$40'UHFRPPHQGHGPRGHOIRU VLPXODWLQJWKHGLVSHUVLRQRISROOXWDQWHPLVVLRQVDQGHVWLPDWLQJJURXQGOHYHOFRQFHQWUDWLRQVRISROOXWDQWV DWVSHFLILHGUHFHSWRUORFDWLRQV

8.a
November 14, 2022

Packet Pg. 268

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
UHVLGHQWLDO0(,5ORFDWLRQ)RUERWK\HDUVWKH0(,5IRU'30H[SRVXUHLVORFDWHGDWDVLQJOH IDPLO\UHVLGHQWLDOEXLOGLQJDW)DLUILHOG'ULYHLQWKH&LW\RI6DQ&DUORV7KH+5$HYDOXDWHG ZRUVWFDVHFDUFLQRJHQLFDQGQRQFDUFLQRJHQLFULVNVWRFKLOG UGWULPHVWHU\HDUVDQG
\HDUV
DQGDGXOW
\HDUVDQG\HDUV
UHFHSWRUV7DEOHVXPPDUL]HVWKHUHVXOWVRI
WKHFRQVWUXFWLRQ+5$
7DEOH
0D[LPXP,QFUHDVHG&DQFHU5LVNIURP3URMHFW&RQVWUXFWLRQ'30(PLVVLRQV <HDU
+HDOWK5LVN,QFUHDVHDW0(,5
$

8QPLWLJDWHG 0LWLJDWHG
5HVLGHQWLDO&KLOG5HFHSWRU
<HDU
<HDU
7RWDO,QFUHPHQWDO+HDOWK5LVN,QFUHDVH
%$$40'6LJQLILFDQFH7KUHVKROG
6LJQLILFDQW,PSDFW" <HV 1R
5HVLGHQWLDO$GXOW5HFHSWRU
<HDU
<HDU
7RWDO,QFUHPHQWDO+HDOWK5LVN,QFUHDVH
%$$40'6LJQLILFDQFH7KUHVKROG
6LJQLILFDQW,PSDFW" 1R 1R
0,*6HH$SSHQGL[%

$
0D[LPXPH[SRVHGUHVLGHQWLDOUHFHSWRUORFDWHGDWP(DQG P1
$VVKRZQLQ7DEOHWKHFDOFXODWHGULVNVDUHJUHDWHVWIRUFKLOGUHFHSWRUV LQSDUWLFXODUFKLOG
UHFHSWRUVWKDWDUHOHVVWKDQWZR\HDUVROGDWWKHVWDUWRIFRQVWUXFWLRQDFWLYLWLHV7KHFDOFXODWHG H[FHVVLQGLYLGXDOFDQFHUULVNIRUWKLVVXEVHWRIWKHSRSXODWLRQLVVXEVWDQWLDOO\KLJKHU

DSSUR[LPDWHO\WKUHHWLPHVKLJKHU
WKDQWKH%$$40'UHFRPPHQGHGVLJQLILFDQFHWKUHVKROG
YDOXHRIH[FHVVFDQFHUVSHUPLOOLRQSRSXODWLRQ
VHH$SSHQGL[%IRUDOOKHDOWKULVN
DVVHVVPHQWUHVXOWV

$WWKHVDPH'30FRQFHQWUDWLRQVULVNVWRFKLOGUHQDJHVZRXOGEHDSSUR[LPDWHO\KDOIWKH %$$40'UHFRPPHQGHGVLJQLILFDQFHWKUHVKROGDQGULVNVWRDGXOWUHFHSWRUVZRXOGEHOHVVWKDQ RQHWHQWKRIWKH%$$40'UHFRPPHQGHGWKUHVKROG7KHPDJQLWXGHRIWKHSURMHFW¶VSUHGLFWHG FDQFHUULVNVDWVHQVLWLYHUHVLGHQWLDOUHFHSWRUVLVSDUWO\DIXQFWLRQRIWKHODWHVW2(++$DQG %$$40'JXLGDQFHRQ+5$VZKLFKDFFRXQWIRULQFUHDVHGVXVFHSWLELOLW\IURPH[SRVXUHWR7$&V LQHDUO\OLIHVWDJHVEXWLVSULPDULO\DIXQFWLRQRIWKHDQWLFLSDWHGFRQVWUXFWLRQDFWLYLWLHVHTXLSPHQW XVDJHDQGWKHFORVHSUR[LPLW\RIWKHUHFHSWRUVWRWKHSURSRVHGFRQVWUXFWLRQDFWLYLWLHV LH
DGMDFHQWWRWKHSURMHFWVLWH

7RUHGXFHSRWHQWLDO'30
DQG30
HPLVVLRQVJHQHUDWHGE\SURMHFWFRQVWUXFWLRQDFWLYLWLHV 0LWLJDWLRQ0HDVXUH$,5ZRXOGEHLQFRUSRUDWHGLQWRWKHSURMHFW0LWLJDWLRQ0HDVXUH$,5 UHTXLUHVDOOPRELOHGLHVHOFRQVWUXFWLRQHTXLSPHQWJUHDWHUWKDQKRUVHSRZHUPHHW86(3$ 7LHU,9HPLVVLRQVWDQGDUGV
,PSDFW$,5
&RQVWUXFWLRQHTXLSPHQWFRXOGJHQHUDWHGLHVHOSDUWLFXODWH '30
HPLVVLRQV
LQH[FHVVRIUHJXODWRU\VWDQGDUGV

8.a
November 14, 2022

Packet Pg. 269

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
0LWLJDWLRQ 0HDVXUH $,5
7R UHGXFH SRWHQWLDO VKRUWWHUP DGYHUVH KHDOWK ULVNV DVVRFLDWHGZLWK30HPLVVLRQVLQFOXGLQJHPLVVLRQVR I'30JHQHUDWHGGXULQJSURMHFW FRQVWUXFWLRQDFWLYLWLHVWKH&LW\VKDOOUHTXLUHWKHSURMHFW$SS OLFDQWDQGRULWVGHVLJQDWHG FRQWUDFWRUVFRQWUDFWRU¶VUHSUHVHQWDWLYHVRURWKHUDSSURSULDWH SHUVRQQHOWRFRPSO\ZLWK WKHIROORZLQJFRQVWUXFWLRQHTXLSPHQWUHVWULFWLRQV

x $OOPRELOHFRQVWUXFWLRQHTXLSPHQWJUHDWHUWKDQKRUVHSRZHUL QVL]HVKDOOPHHW ZLWK8QLWHG6WDWH(QYLURQPHQWDO3URWHFWLRQ$JHQF\
86(3$
DQG&DOLIRUQLD$LU
5HVRXUFHV%RDUG
&$5%
7LHU,9 ([KDXVW(PLVVLRQ6WDQGDUGV7KLV PD\EH
DFKLHYHGYLDWKHXVHRIHTXLSPHQWZLWKHQJLQHVWKDWKDYHEHHQF HUWLILHGWRPHHW 86(3$DQG&$5%7LHU,9HPLVVLRQVVWDQGDUGVRUWKURXJKWKHXVHRIHTXLSPHQW WKDWKDVEHHQUHWURILWWHGZLWKD&$5%YHULILHGGLHVHOHPLVVLRQ FRQWUROVWUDWHJ\

HJSDUWLFXODWHILOWHU
FDSDEOHRIUHGXFLQJH[KDXVW30HPLVVLRQVWROHYHOVWKDW PHHW86(3$DQG&$5%7LHU,9HPLVVLRQVVWDQGDUGV
$VDQDOWHUQDWLYHWRKDYLQJDOOPRELOHFRQVWUXFWLRQHTXLSPHQWJUHDWHUWKDQKRUVHSRZHU PHHWZLWK86(3$DQG&$5%7LHU,9([KDXVW(PLVVLRQ6WDQGDUGV WKH$SSOLFDQWPD\ SUHSDUHDQGVXEPLWDUHILQHGFRQVWUXFWLRQKHDOWKULVNDVVHVVPHQ WWRWKH&LW\RQFH DGGLWLRQDOSURMHFWVSHFLILFFRQVWUXFWLRQLQIRUPDWLRQLVNQRZQ HJVSHFLILFFRQVWUXFWLRQ
HTXLSPHQWW\SHTXDQWLW\HQJLQ HWLHUDQGUXQWLPHE\SKDVH 7 KHUHILQHGKHDOWKULVN
DVVHVVPHQW VKDOO GHPRQVWUDWH DQGLGHQWLI\ DQ\ PHDVXUHV QHFHVVDU\ VXFK WKDW WKH SURSRVHGSURMHFW¶VLQFUHPHQWDOF DUFLQRJHQLFKHDOWKULVNDWQHDU E\VHQVLWLYHUHFHSWRU ORFDWLRQVLVEHORZWKHDSSOLFDEOH%$$40'WKUHVKROGRIFDQFHUVLQDPLOOLRQ (IIHFWLYHQHVV
7KLVPHDVXUHZRXOGUHGXFHSRWHQWLDOFDUFLQRJHQLFKHDOWKULVNVE \ DSSUR[LPDWHO\SHUFHQWDQGW ROHYHOVWKDWDUHEHORZDSSOLF DEOH %$$40'ULVNWKUHVKROGV
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKL VUHTXLUHPHQWRQDOODSSURSULDWH ELG FRQWUDFWDQGHQJLQHHULQJDQGVLWH SODQ
HJEXLOGLQJJUDGLQ JDQG
LPSURYHPHQWSODQV
GRFXPHQWV
7LPLQJ
'XULQJFRQVWUXFWLRQDFWLYLWLHV
0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJDQG VLWHSODQGRFXPHQWVIRULQFOXVLRQRIWKLVUHTXLUHPHQWDQGYHULI \WKH FRQVWUXFWLRQHTXLSPHQWXWLOL]HG GXULQJFRQVWUXFWLRQPHHWWKH7L HU,9 HPLVVLRQVWDQGDUGV
$VVKRZQLQ7DEOHSRWHQWLDOKHDOWKULVNVZRXOGEHUHGXFHGIURPDSSUR[LPDWHO\WR IRUDFKLOGUHFHSWRUXQGHUWKHDJHRIWZRDWWKH0(,5ORFDWLRQZKLFKORZHUVWKHHVWLPDWHG FDUFLQRJHQLFKHDOWKULVNEHORZWKH%$$40'6LJQLILFDQFH7KUHVKROGYDOXHRIH[FHVVFDQFHUV SHUPLOOLRQSRSXODWLRQ6LQFHWKHSURSRVHGSURMHFWZRXOGQRWH[SRVHDQ\UHFHSWRUVWRFDQFHU KHDOWKULVNVLQH[FHVVRIWKH%$$40'¶VUHFRPPHQGHGWKUHVKROGWKLVLPSDFWZRXOGEHOHVV WKDQVLJQLILFDQWZLWKPLWLJDWLRQLQFRUSRUDWHG
1RQ&DUFLQRJHQLF+HDOWK+D]DUGIURP([SRVXUHWR'30
7KHPD[LPXPDQQXDODYHUDJH'30FR QFHQWUDWLRQDWDQ\UHFHSWRUOR FDWLRQXQGHUPLWLJDWHG FRQGLWLRQVZRXOGEHDSSUR[LPDWHO\ȝJP ZKLFKZRXOGRFFXUDWWKH 0(,5DVVRFLDWHGZLWK <HDUFRQVWUXFWLRQDFWLYLWLHV
VHH)LJXUH
%DVHGRQWKHFK URQLFLQKDODWLRQ5(/IRU'30

ȝJP
WKH FDOFXODWHG FKURQLF KD]DUG TXRWLHQW GXULQJ WKH PD[LPXP H[SRVXUH WR '30 FRQFHQWUDWLRQZRXOGEHZKLFKLVEHORZWKH%$$40'¶VQRQFDQFHUKD]DUGLQGH[WKUHVKROG YDOXHRI7KHSURSRVHGSURMH FWWKHUHIRUHZRXOGQRWUHVXOW LQVLJQLILFDQWQRQFDUFLQRJHQLF KHDOWKULVNVWRUHFHSWRUVIURP'30H[SRVXUH

8.a
November 14, 2022

Packet Pg. 270

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&ULWHULD$LU3ROOXWDQW([SRVXUH
$VGHVFULEHGLQ6HFWLRQERWKWKH86(3$DQG&$5%UHJXODWHFRPPRQDLUSROOXWDQWVRQ WKHEDVLVRIKXPDQKHDOWKDQGRUHQYLURQPHQWDOFULWHULDZLWKWKHPRVWFRPPRQO\UHJXODWHGDLU SROOXWDQWVLQFOXGLQJ12[30&2HWFZKLFKFDQFDXVHDGYHUVHKXPDQKHDOWKHIIHFWV$V VKRZQLQ7DEOHDQG7DEOHWKHSRWHQWLDOHPLVVLRQVRI12[&2DQG30DVVRFLDWHGZLWK GHYHORSPHQWDFWLYLWLHVZRXOGQRWH[FHHGWKH%$$40'UHFRPPHQGHGUHJLRQDOWKUHVKROGV7KLV LPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW
&DUERQ0RQR[LGH+RWVSRWV
$&2KRWVSRWLVDQDUHDRIORFDOL]HG&2SROOXWLRQWKDWLVFDXVHGE\VHYHUHYHKLFOHFRQJHVWLRQ RQPDMRUURDGZD\VW\SLFDOO\QHDUKLJKYROXPHLQWHUVHFWLRQV7KH%$$40'GHYHORSHGD VFUHHQLQJWKUHVKROGLQZKLFKVWDWHVWKDWDQ\SURMHFWLQYROYLQJDQLQWHUVHFWLRQH[SHULHQFLQJ YHKLFOHVSHUKRXUZRXOGUHTXLUHGHWDLOHGDQDO\VLV %$$40'SJ
7KH
SURSRVHGSURMHFWZRXOGDGGDSSUR[LPDWHO\
QHWQHZYHKLFOHWULSVWRWKHURDGZD\V\VWHP
SHUGD\ZLWKDWRWDORIDQGQHWQHZWULSVGXULQJWKH$0DQG30SHDNKRXUV UHVSHFWLYHO\
+H[DJRQ
7KHVHYROXPHVDUHZHOOEHORZWKH%$$40'VFUHHQLQJWKUHVKROG 7KHSURSRVHGSURMHFWZRXOGQRWFDXVHLQWHUVHFWLRQYROXPHVWRH[FHHGDQ\KRXUO\

VFUHHQLQJYHKLFOHYROXPHVPDLQWDLQHGE\WKH%$$40'DQGWKHUHIRUHZRXOGQRWUHVXOWLQ VLJQLILFDQW&2FRQFHQWUDWLRQV7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW G
5HVXOWLQRWKHUHPLVVLRQV
VXFKDVWKRVHOHDGLQJWRRGRUV
D GYHUVHO\DIIHFWLQJ
DVXEVWDQWLDOQXPEHURISHRSOH"
/HVV7KDQ6LJQLILFDQW,PSDFW&RQVWUXFWLRQRIWKHSURMHFWZRXOGJHQHUDWHW\SLFDORGRUV DVVRFLDWHGZLWKFRQVWUXFWLRQDFWLYLWLHVVXFKDVYHKLFOHH[KDXVWRGRUV7KHRGRUVJHQHUDWHGE\ WKHSURMHFWZRXOGEHLQWHUPLWWHQWDQGORFDOL]HGLQQDWXUHDQGZRXOGGLVSHUVHTXLFNO\7KHUHDUH QRRWKHUDQWLFLSDWHGRGRUHPLVVLRQVDVVRFLDWHGZLWKSURMHFWRSHUDWLRQ7KHUHIRUHWKHSURMHFW ZRXOGQRWFUHDWHHPLVVLRQVRURGRUVWKDWDGYHUVHO\DIIHFWDVXEVWDQWLDOQXPEHURISHRSOH7KLV LPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW
5HIHUHQFHV
%D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW
%$$40'
5HFRPPHQGHG0HWKRGVIRU
6FUHHQLQJDQG0RGHOLQJ/RFDO5LVNVDQG+D]DUGV0D\ KWWSV
ZZZEDDTPGJRYaPHGLDILOHVSODQQLQJDQGUHVHDUFKFHTDULVNPRGHOLQJ DSSURDFKPD\SGI"OD HQ
BBBBBB$LU7R[LFV1653URJUDP+HDOWK5LVN$VVHVVPHQW +5$
*XLGHOLQHV-DQXDU\
KWWSV
ZZZEDDTPGJRYaPHGLDILOHVSODQQLQJDQGUHVHDUFKUXOHVDQG UHJVZRUNVKRSVUHJKUDJXLGHOLQHVBFOHDQBMDQBSGISGI"OD HQ BBBBBBD³$LU4XDOLW\6WDQGDUGVDQG$WWDLQPHQW6WDWXV´%$$40'5HVHDUFK 'DWD$LU 4XDOLW\6WDQGDUGV $WWDLQPHQW6WDWXV-DQXDU\$FFHVVHGRQ'HFHPEHU
DWKWWS
ZZZEDDTPGJRYUHVHDUFKDQGGDWDDLUTXDOLW\VWDQGDUGVDQGDWWDLQPHQW VWDWXV
BBBBBBE&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW$LU4XDOLW\*XLGHOLQHV6DQ)UDQFLVFR&$ -XQHXSGDWHG0D\
BBBBBBF&OHDQ$LU3ODQ
6SDUHWKH$LU&RROWKH&OLPDWH%$$40'3ODQQLQJ
5XOHVDQG5HVHDUFK'LYLVLRQ$SULO

BBBBBB
&XUUHQW5XOHV%$$40'$XJXVW

$FFHVVHG)HEUXDU\
KWWS
ZZZEDDTPGJRYUXOHVDQGFRPSOLDQFHFXUUHQWUXOHV!

8.a
November 14, 2022

Packet Pg. 271

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
+H[DJRQ7UDQVSRUWDWLRQ&RQVXOWDQWV
+H[DJRQ
³,QGXVWULDO5RDG
6DQ&DUORV
7ULS
*HQHUDWLRQSGI´7UDQVPLWWHGIURP5XHEHQ5RGULJXH]+H[DJRQ 7UDQVSRUWDWLRQ&RQVXOWDQWVWR3KLO*OHDVRQ0,*RQ-DQXDU\(PDLO³5(
,QGXVWULDO5RDG&(4$±GDWDUHTXHVW´
2IILFHRI(QYLURQPHQWDO+HDOWK+D]DUG$VVHVVPHQW
2(++$
$LU7R[LFV+RW6SRWV
3URJUDP*XLGDQFH0DQXDO)HEUXDU\
KWWSV
RHKKDFDJRYPHGLDGRZQORDGVFUQUJXLGDQFHPDQXDOSGI

8.a
November 14, 2022

Packet Pg. 272

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
%,2/2*,&$/5(6285&(6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R,PSDFW
:RXOGWKHSURMHFW

D
+DYHDVXEVWDQWLDODGYHUVHHIIHFWHLWKHU
GLUHFWO\RUWKURXJKKDELWDWPRGLILFDWLRQVRQDQ\
VSHFLHVLGHQWLILHGDVDFDQGLGDWHVHQVLWLYHRU
VSHFLDOVWDWXVVSHFLHVLQORFDORUUHJLRQDOSODQV
SROLFLHVRU
UHJXODWLRQVRUE\WKH&DOLIRUQLD
'HSDUWPHQWRI)LVKDQG:LOGOLIHRU86)LVK
DQG:LOGOLIH6HUYLFH"

E
+DYHDVXEVWDQWLDODGYHUVHHIIHFWRQDQ\
ULSDULDQKDELWDWRURWKHUVHQVLWLYHQDWXUDO
FRPPXQLW\LGHQWLILHGLQORFDORUUHJLRQDOSODQV
SROLFLHVUHJXODWLRQVRUE\WKH&DOLIRUQLD
'HSDUWPHQWRI)LVKDQG:LOGOLIHRU86)LVK
DQG:LOGOLIH6HUYLFH"

F
+DYHDVXEVWDQWLDODGYHUVHHIIHFWRQVWDWHRU
IHGHUDOO\SURWHFWHGZHWODQGV
LQFOXGLQJEXWQRW
OLPLWHGWRPDUVKYHUQDOSRROFRDVWDOHWF

WKURXJKGLUHFWUHPRYDOILOOLQJ
K\GURORJLFDO
LQWHUUXSWLRQRURWKHUPHDQV"

G
,QWHUIHUHVXEVWDQWLDOO\ZLWKWKHPRYHPHQWRI
DQ\QDWLYHUHVLGHQWRUPLJUDWRU\ILVKRUZLOGOLIH
VSHFLHVRUZLWKHVWDEOLVKHGQDWLYHUHVLGHQWRU
PLJUDWRU\ZLOGOLIHFRUULGRUVRULPSHGHWKHXVHRI
QDWLYHZLOGOLIHQXUVHU\VLWHV"

H
&RQIOLFWZLWKDQ\ORFDOSROLFLHVRURUGLQDQFHV
SURWHFWLQJELRORJLFDOUHVRXUFHVVXFKDVDWUHH
SUHVHUYDWLRQSROLF\RURUGLQDQFH"

I
&RQIOLFWZLWKWKHSURYLVLRQVRIDQDGRSWHG
+DELWDW&RQVHUYDWLRQ3ODQ1DWXUDO&RPPXQLW\
&RQVHUYDWLRQ3ODQRURWKHUDSSURYHGORFDO
UHJLRQDORUVWDWHKDELWDWFRQVHUYDWLRQSODQ"

(QYLURQPHQWDO6HWWLQJ
7KHSURMHFWVLWHLVORFDWHGZLWKLQWKH6DQ0DWHR&DOLIRUQLDPLQXWH86*6TXDGUDQJOH,WLVLQ WKHZDWHUVKHGRI6WHLQEHUJHU6ORXJKGRZQVWUHDPRIERWKWKH%HOPRQW&UHHNDQG3XOJDV&UHHN ZDWHUVKHGV
7LOOHU\
0,*ELRORJLVWV.LP%ULRQHVDQG$OH[%URVNRIIFRQGXFWHGDILHOGYLVLW RIWKHSURMHFWVLWHDQGVXUURXQGLQJYLFLQLW\RQ)HEUXDU\ &XUUHQWO\WKHVLWHLVDOPRVWHQWLUHO\SDYHGDQGLVRFFXSLHGE\DVHOIVWRUDJHIDFLOLW\7KHUHLV RQHWUHHRQWKHSURSHUW\
KRZHYHUWKHSURSHUW\LVVXUURXQGHGE\QHLJKERULQJVFUHHQLQJ YHJHWDWLRQLQWKH&DOWUDQVULJKWRIZD\7KHSURMHFWVLWHLVERUGHUHGRQWKHVRXWKDQGHDVWE\DQ HQJLQHHUHGQDWXUDOERWWRPFKDQQHOLQWKH&DOWUDQVULJKWRIZD\WKDWFROOHFWVVWRUPZDWHUIURP 6DQ&DUORVDQGHPSWLHVLQWR3KHOSV6ORXJKDSSUR[LPDWHO\PLOHVQRUWKHDVWRIWKHSURMHFW VLWH3KHOSV6ORXJKHQWHUVDODJRRQEHIRUHEHLQJUHOHDVHGWR6WHLQEHUJHU6ORXJKWKURXJKD WLGHJDWH'XULQJWKH)HEUXDU\VLWHYLVLWWKHFKDQQHOKDGIORZLQJZDWHUDQGFRQWDLQHG ZHWODQGSODQWV

8.a
November 14, 2022

Packet Pg. 273

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&RPPRQ:LOGOLIH6SHFLHV2EVHUYHG
:LOGOLIHREVHUYHGLQWKHPL[HGZRRGODQGKDELWDWGXULQJWKH)HEUXDU\VLWHYLVLWLQFOXGHV EODFNSKRHEH
6D\RUQLVQLJULFDQV
EXVKWLW
3VDOWULSDUXVPLQLPXV
KRXVHILQFK
+DHPRUKRXV
PH[LFDQXV
DQG&DQDGDJRRVH
%UDQWDFDQDGHQVLVIHFHVREVHUYHGQHDUFUHHN
2WKHUVSHFLHV
WKDWDUHFRPPRQLQVWUHDPDQGPL[HGZRRGODQGKDELWDWVLQXUEDQDUHDVPD\DOVREHSUHVHQW EXWZHUHQRWREVHUYHGLQFOXGH
ZHVWHUQIHQFHOL]DUG
6FHORSRUXVRFFLGHQWDOLV
1RUWKHUQDOOLJDWRU
OL]DUG
(OJDULDFRHUXOHD
DQGJRSKHUVQDNH
3LWXRSKLVFDWHQLIHU
$QQD¶VKXPPLQJELUG
&DO\SWH
DQQD
ZHVWHUQVFUXEMD\
$SKHORFRPDFDOLIRUQLFD
$PHULFDQFURZ
&RUYXVEUDFK\UK\QFKRV

&DOLIRUQLDWRZKHH
3LSLORFULVVDOLV
GDUNH\HGMXQFR
-XQFRK\HPDOLV
KRXVHILQFK
&DUSRGDFXV

SXUSXUHXV
(DVWHUQIR[VTXLUUHO
6FLXUXVQLJHU
QRUWKHUQUDFFRRQ
3URF\RQORWRU
9LUJLQLD
RSRVVXP
'LGHOSKLVYLUJLQLDQD
DQGVWULSHGVNXQN
0HSKLWLVPHSKLWLV
2QHVSHFLDOVWDWXV
PDPPDOVSHFLHVWKH6DQ)UDQFLVFRGXVN\IRRWHGZRRGUDW 1HRWRPDIXVFLSHVDQQHFWHQV
DOVR
FRPPRQO\RFFXUVLQWKLVKDELWDWW\SHEXWQRQHRILWVFKDUDFWHULVWLFSHUHQQLDOPLGGHQVZHUH REVHUYHGWREHSUHVHQW
([LVWLQJ/DQG&RYHU7\SHV9HJHWDWLRQ&RPPXQLWLHVDQG+DELWDWV 'HYHORSHG
7KHSURMHFWSDUFHOFRQVLVWVRIDSDYHGORWZLWKPXOWLSOHVHOIVWRUDJHEXLOGLQJV2QO\OLPLWHG VSDUVHRUQDPHQWDOSODQWLQJVDUHSUHVHQWRQWKHSURMHFWVLWHDOWKRXJKWKHVRXWKZHVWHUQFRUQHU RIWKHVLWHFRQWDLQVDQRSHQGUDLQDJHGLWFK
VHH)LJXUH
'HYHORSHGKDELWDWVKDYHOLPLWHG
YDOXHWRPRVWZLOGOLIHVSHFLHVEXWDIHZXUEDQDGDSWHGVSHFLHVVXFKDVPRXUQLQJGRYH

=HQDLGDPDFURXUD
DQGKRXVHILQFK
+DHPRUKRXVPH[LFDQXV
PD\QHVWDGMDFHQWWRWKH
GHYHORSHGSRUWLRQRIWKHSURMHFWVLWHDQGRQKXPDQPDGHIHDWXUHVVXFKDVOLJKWIL[WXUHVZLWKLQ WKHSURMHFWVLWH+RZHYHUQRZLOGOLIHZHUHREVHUYHGRQWKHSURMHFWVLWHGXULQJWKHVLWHYLVLW 0L[HG5LSDULDQ:RRGODQG
$QDUURZFRUULGRUVXSSRUWLQJPL[HGULSDULDQZRRGODQGLVSUHVHQWSULPDULO\LQWKH&DOWUDQVULJKW RIZD\LPPHGLDWHO\VRXWKRIDQGDGMDFHQWWRWKHSURMHFWVLWH7KLVKDELWDWFRQVLVWVRI RUQDPHQWDODQGQDWLYHWUHHVSHFLHVWKDWKDYHEHHQSODQWHGLQWKH&DOWUDQVULJKWRIZD\DORQJ WKHSURSHUW\OLQHDVDYHJHWDWLRQEUHDNIURP+LJKZD\DQG+ROO\6WUHHWDGMDFHQWWRWKH SURMHFWVLWH7KHVHVSHFLHVLQFOXGH
DFDFLDVSHFLHV
$FDFLDVSS
HXFDO\SWXVVSHFLHV

(XFDO\SWXVVS
DQGFRDVWOLYHRDN
4XHUFXVDJULIROLD
7KHXQGHUVWRU\RIWKLVKDELWDWLVVSDUVH
DQGVXSSRUWVDPL[RIQRQQDWLYHKHUEDFHRXVVSHFLHVLQFOXGLQJIHQQHO )RHQLFXOXPYXOJDUH

FKHHVHZHHG
0DOYDSDUYLIORUD
ZLOGUDGLVK
5DSKDQXVUDSKDQLVWUXP
YHWFK
YHWFKVS
ZRRG
VRUUHO
2[DOLVVS
DQGQRQQDWLYHJUDVVHV
6WRUP'UDLQ&KDQQHO
7KHVRXWKZHVWFRUQHURIWKHSURMHFWVLWHFRQWDLQVDQRSHQHDUWKHQERWWRPHQJLQHHUHGGUDLQDJH FKDQQHOWKDWIORZVLQWRWKHPDLQFKDQQHOWKDWLVLQWKH&DOWUDQVULJKWRIZD\LPPHGLDWHO\VRXWK RIWKHSURMHFWERXQGDU\
VHH)LJXUHDQG)LJXUH
7KHVHFKDQQHOVFRQWDLQZHWODQGYHJHWDWLRQ
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±LQFKHVRIZDWHUDQGLVOLNHO\WREHSHUHQQLDO9HJHWDWLRQSUHVHQW ZLWKLQWKHFKDQQHOLQFOXGHVFDWWDLOV
7\SKDVS
DQGJLDQWUHHG
$UXQGRGRQD[
$OWKRXJKOLPLWHG
ZLOGOLIHZDVREVHUYHGGXULQJWKHVLWHYLVLWXUEDQDGDSWHGVSHFLHVVXFKDVUDFFRRQPD\IRUDJH IRUUHVRXUFHVIURPWKHFKDQQHOEXWQRLQGLYLGXDOVRUVLJQZHUHREVHUYHGGXULQJWKHVXUYH\

8.a
November 14, 2022

Packet Pg. 274

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHJHRWHFKQLFDOUHSRUWIRUWKHSURMHFWLQGLFDWHVWKDWWKHHDUWKHQVWRUPGUDLQFKDQQHOKDV PDUJLQDOO\VWDEOHVORSHVWKDWFRXOGIDLOXQGHUHTXLSPHQWRURWKHUFRQVWUXFWLRQORDGLQJ 7KHUHIRUHVORSHVWDELOL]DWLRQPHDVXUHVVXFKDVSRVVLEO\VKHHWSLOHVKRULQJDUHH[SHFWHGWREH QHFHVVDU\GXULQJFRQVWUXFWLRQ
6SHFLDO6WDWXV6SHFLHVDQG6HQVLWLYH+DELWDWV
7KHFKDQQHODGMDFHQWWRWKHSURMHFWVLWHSRWHQWLDOO\SURYLGHVKDELWDWIRUVSHFLDOVWDWXVVSHFLHV LQFOXGLQJ&DOLIRUQLDUHGOHJJHGIURJ
5DQDGUD\WRQLL
DQG&HQWUDO&DOLIRUQLD&RDVWVWHHOKHDG

2QFKRUK\QFKXVP\NLVV
0L[HGULSDULDQZRRGODQGDQGZHWODQGKDELWDWVDUHSUHVHQWLQDQG DGMDFHQWWRWKHFKDQQHO7KHPL[HGULSDULDQZRRGODQGSURYLGHVKDELWDWIRUQHVWLQJELUGVWKDWDUH SURWHFWHGE\VWDWHDQGIHGHUDOODZ6SHFLDOVWDWXVVSHFLHVDQGVHQVLWLYHKDELWDWVDUHGLVFXVVHG LQJUHDWHUGHWDLOIXUWKHUEHORZ
5HJXODWRU\6HWWLQJ
)HGHUDO5HJXODWLRQV
)HGHUDO(QGDQJHUHG6SHFLHV$FW
7KH)HGHUDO(QGDQJHUHG6SHFLHV$FW
)(6$
RI
DVDPHQGHGSURYLGHVWKHUHJXODWRU\
IUDPHZRUNIRUWKHSURWHFWLRQRISODQWDQGDQLPDOVSHFLHV DQGWKHLUDVVRFLDWHGFULWLFDOKDELWDWV

ZKLFKDUHIRUPDOO\OLVWHGSURSRVHGIRUOLVWLQJRUFDQGLGDWHVIRUOLVWLQJDVHQGDQJHUHGRU WKUHDWHQHGXQGHU)(6$)(6$KDVWKHIROORZLQJIRXUSULPDU\FRPSRQHQWV

SURYLVLRQVIRU
OLVWLQJVSHFLHV

UHTXLUHPHQWVIRUFRQVXOWDWLRQZLWKWKH8QLWHG6WDWHV)LVKDQG:LOGOLIH6HUYLFH

86):6
DQGWKH1DWLRQDO2FHDQLFDQG$WPRVSKHULF$GPLQLVWUDWLRQ¶V1DWLRQDO0DULQH)LVKHULHV 6HUYLFH
12$$)LVKHULHV

SURKLELWLRQVDJDLQVW³WDNLQJ´
LHKDUDVVLQJKDUPLQJKXQWLQJ
VKRRWLQJZRXQGLQJNLOOLQJWUDSSLQJFDSWXULQJRUFROOHFWLQJRUDWWHPSWLQJWRHQJDJHLQDQ\ VXFKFRQGXFW
RIOLVWHGVSHFLHV
DQG

SURYLVLRQVIRUSHUPLWVWKDWDOORZLQFLGHQWDO³WDNH´)(6$ DOVRGLVFXVVHVUHFRYHU\SODQVDQGWKHGHVLJQDWLRQRIFULWLFDOKDELWDWIRUOLVWHGVSHFLHV %RWKWKH86):6DQG12$$)LVKHULHVVKDUHWKHUHVSRQVLELOLW\IRUDGPLQLVWUDWLRQRI)(6$ 6HFWLRQUHTXLUHVIHGHUDODJHQFLHVLQFRQVXOWDWLRQZLWKDQGZLWKWKHDVVLVWDQFHRIWKH86):6 RU12$$)LVKHULHVDVDSSURSULDWHWRHQVXUHWKDWDFWLRQVWKH\DXWKRUL]HIXQGRUFDUU\RXWDUH QRWOLNHO\WRMHRSDUGL]HWKHFRQWLQXHGH[LVWHQFHRIWKUHDWHQHGRUHQGDQJHUHGVSHFLHVRUUHVXOWLQ WKHGHVWUXFWLRQRUDGYHUVHPRGLILFDWLRQRIFULWLFDOKDELWDWIRUWKHVHVSHFLHV1RQIHGHUDO DJHQFLHVDQGSULYDWHHQWLWLHVFDQVHHNDXWKRUL]DWLRQIRUWDNHRIIHGHUDOO\OLVWHGVSHFLHVXQGHU 6HFWLRQRI)(6$ZKLFKUHTXLUHVWKHSUHSDUDWLRQRIDKDELWDWFRQVHUYDWLRQSODQ 860LJUDWRU\%LUG7UHDW\$FW
7KH860LJUDWRU\%LUG7UHDW\$FW
0%7$
86&HWVHT7LWOH&RGHRI)HGHUDO
5HJXODWLRQV>&)5@3DUW
VWDWHVLWLV³XQODZIXODWDQ\WLPHE\DQ\PHDQVRULQDQ\PDQQHUWR SXUVXHKXQWWDNHFDSWXUHNLOO
DWWHPSWWRWDNHFDSWXUHRUNLOO
SRVVHVVRIIHUIRUVDOHVHOORIIHU
WREDUWHUEDUWHURIIHUWRSXUFKDVHSXUFKDVHGHOLYHUIRUVKLSPHQWVKLSH[SRUWLPSRUWFDXVHWR EHVKLSSHGH[SRUWHGRULPSRUWHGGHOLYHUIRUWUDQVSRUWDWLRQWUDQVSRUWRUFDXVHWREH WUDQVSRUWHGFDUU\RUFDXVHWREHFDUULHGRUUHFHLYHIRUVKLSPHQWWUDQVSRUWDWLRQFDUULDJHRU H[SRUWDQ\PLJUDWRU\ELUGDQ\SDUWQHVWRUHJJRIDQ\VXFKELUGRUDQ\SURGXFWZKHWKHURUQRW PDQXIDFWXUHGZKLFKFRQVLVWVRULVFRPSRVHGLQZKROHRULQSDUWRIDQ\VXFKELUGRUDQ\SDUW QHVWRUHJJWKHUHRI«´,QVKRUWXQGHU0%7$LWLVLOOHJDOWRGLVWXUEDQHVWWKDWLVLQDFWLYHXVH VLQFHWKLVFRXOGUHVXOWLQNLOOLQJDELUGGHVWUR\LQJDQHVWRUGHVWUR\LQJDQHJJ7KH86):6 HQIRUFHV0%7$7KH0%7$GRHVQRWSURWHFWVRPHELUGVWKDWDUHQRQQDWLYHRUKXPDQ LQWURGXFHGRUWKDWEHORQJWRIDPLOLHVWKDWDUHQRWFRYHUHGE\DQ\RIWKHFRQYHQWLRQV LPSOHPHQWHGE\0%7$,QWKH86):6LVVXHGDPHPRUDQGXPVWDWLQJWKDWWKH0%7$ GRHVQRWSURKLELWLQFLGHQWDOWDNH
WKHUHIRUHWKH0%7$LVFXUUHQWO\OLPLWHGWRSXUSRVHIXODFWLRQV VXFKDVGLUHFWO\DQGNQRZLQJO\UHPRYLQJDQHVWWRFRQVWUXFWDSURMHFWKXQWLQJDQGSRDFKLQJ

8.a
November 14, 2022

Packet Pg. 275

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&OHDQ:DWHU$FW
7KH&OHDQ:DWHU$FW
&:$
LVWKHSULPDU\IHGHUDOODZUHJXODWLQJZDWHUTXDOLW\7KH LPSOHPHQWDWLRQRIWKH&:$LVWKHUHVSRQVLELOLW\RIWKH86(QYLURQPHQWDO3URWHFWLRQ$JHQF\

(3$
+RZHYHUWKH(3$GHSHQGVRQRWKHUDJHQFLHVVXFKDVWKHLQGLYLGXDOVWDWHVDQGWKH 86$UP\&RUSVRI(QJLQHHUV
86$&(
WRDVVLVWLQLPSOHPHQWLQJWKH&:$7KHREMHFWLYHRI
WKH&:$LVWR³UHVWRUHDQGPDLQWDLQWKHFKHPLFDOSK\VLFDODQGELRORJLFDOLQWHJULW\RIWKH 1DWLRQ¶VZDWHUV´6HFWLRQDQGRIWKH&:$DSSO\WRDFWLYLWLHVWKDWZRXOGLPSDFWZDWHUV RIWKH867KH86$&(HQIRUFHV6HFWLRQRIWKH&:$DQGWKH&DOLIRUQLD6WDWH:DWHU 5HVRXUFHV&RQWURO%RDUGHQIRUFHV6HFWLRQ
6HFWLRQ
$VSDUWRILWVPDQGDWHXQGHU6HFWLRQRIWKH&:$WKH(3$UHJXODWHVWKHGLVFKDUJHRI GUHGJHGRUILOOPDWHULDOLQWR³ZDWHUVRIWKH8QLWHG6WDWHV´ 86
³:DWHUVRIWKH86´LQFOXGH
WHUULWRULDOVHDVWLGDOZDWHUVDQGQRQWLGDOZDWHUVLQDGGLWLRQWRZHWODQGVDQGGUDLQDJHVWKDW VXSSRUWZHWODQGYHJHWDWLRQH[KLELWSRQGLQJRUVFRXULQJVKRZREYLRXVVLJQVRIFKDQQHOLQJRU KDYHGLVFHUQLEOHEDQNVDQGKLJKZDWHUPDUNV:HWODQGVDUHGHILQHGDVWKRVHDUHDV³WKDWDUH LQXQGDWHGRUVDWXUDWHGE\VXUIDFHRUJURXQGZDWHUDWDIUHTXHQF\DQGGXUDWLRQVXIILFLHQWWR VXSSRUWDQGWKDWXQGHUQRUPDOFLUFXPVWDQFHVGRVXSSRUWDSUHYDOHQFHRIYHJHWDWLRQW\SLFDOO\ DGDSWHGIRUOLIHLQVDWXUDWHGVRLOFRQGLWLRQV´
&)5
E

7KHGLVFKDUJHRIGUHGJHGRUILOO
PDWHULDOLQWRZDWHUVRIWKH86LVSURKLELWHGXQGHUWKH&:$H[FHSWZKHQLQFRPSOLDQFHZLWK 6HFWLRQRIWKH&:$(QIRUFHPHQWDXWKRULW\IRU6HFWLRQZDVJLYHQWRWKH86$&(ZKLFK LWDFFRPSOLVKHVXQGHU,WVUHJXODWRU\EUDQFK7KH(3$KDVYHWRDXWKRULW\RYHUWKH86$&(¶V DGPLQLVWUDWLRQRIWKH6HFWLRQSURJUDPDQGPD\RYHUULGHD86$&(GHFLVLRQZLWKUHVSHFWWR SHUPLWWLQJ
6XEVWDQWLDOLPSDFWVWRZDWHUVRIWKH86PD\UHTXLUHDQ,QGLYLGXDO3HUPLW3URMHFWVWKDWRQO\ PLQLPDOO\DIIHFWZDWHUVRIWKH86PD\PHHWWKHFRQGLWLRQVRIRQHRIWKHH[LVWLQJ1DWLRQZLGH 3HUPLWVSURYLGHGWKDWVXFKSHUPLWV¶RWKHUUHVSHFWLYHFRQGLWLRQVDUHVDWLVILHG$:DWHU4XDOLW\ &HUWLILFDWLRQRUZDLYHUSXUVXDQWWR6HFWLRQRIWKH&:$LVUHTXLUHGIRU6HFWLRQSHUPLW DFWLRQV
VHHEHORZ

6HFWLRQ
$Q\DSSOLFDQWIRUDIHGHUDOSHUPLWWRLPSDFWZDWHUVRIWKH86XQGHU6HFWLRQRIWKH&:$ LQFOXGLQJ1DWLRQZLGH3HUPLWVZKHUHSUHFRQVWUXFWLRQQRWLILFDWLRQLVUHTXLUHGPXVWDOVRSURYLGH WRWKH86$&(DFHUWLILFDWLRQRUZDLYHUIURPWKH6WDWHRI&DOLIRUQLD7KH³&HUWLILFDWLRQ´LV SURYLGHGE\WKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUGWKURXJKWKHORFDO5HJLRQDO:DWHU4XDOLW\ &RQWURO%RDUG
5:4&%

7KH5:4&%LVVXHVDQGHQIRUFHVSHUPLWVIRUGLVFKDUJHRIWUHDWHGZDWHUODQGILOOVVWRUPZDWHU UXQRIIILOOLQJRIDQ\VXUIDFHZDWHUVRUZHWODQGVGUHGJLQJDJULFXOWXUDODFWLYLWLHVDQGZDVWHZDWHU UHF\FOLQJ7KH5:4&%UHFRPPHQGVWKH³&HUWLILFDWLRQ´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
DFUHVRIZHWODQGVSURYLGHGDVDUHUHPRYHG7KH5:4&%ORRNVIRUPLWLJDWLRQWKDWLVRQVLWHDQG LQNLQGZLWKIXQFWLRQVDQGYDOXHVDVJRRGDVRUEHWWHUWKDQWKHZDWHUEDVHGKDELWDWWKDWLVEHLQJ UHPRYHG

8.a
November 14, 2022

Packet Pg. 276

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
6WDWH5HJXODWLRQV
&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW
&(4$

&(4$*XLGHOLQHV6HFWLRQGHILQHVHQGDQJHUHGWKUHDWHQHGDQGUDUHVSHFLHVIRU SXUSRVHVRI&(4$DQGFODULILHVWKDW&(4$UHYLHZH[WHQGVWRRWKHUVSHFLHVWKDWDUHQRWIRUPDOO\ OLVWHGXQGHUWKHVWDWHRUIHGHUDO(QGDQJHUHG6SHFLHVDFWVEXWWKDWPHHWVSHFLILHGFULWHULD7KH VWDWHPDLQWDLQVDOLVWRIVHQVLWLYHRU³VSHFLDOVWDWXV´ELRORJLFDOUHVRXUFHVLQFOXGLQJWKRVHOLVWHG E\WKHVWDWHRUIHGHUDOJRYHUQPHQWRUWKH&DOLIRUQLD1DWLYH3ODQW6RFLHW\ &136
DV
HQGDQJHUHGWKUHDWHQHGUDUHRURIVSHFLDOFRQFHUQGXHWRGHFOLQLQJSRSXODWLRQV'XULQJ&(4$ DQDO\VLVIRUDSURSRVHGSURMHFWWKH&DOLIRUQLD1DWXUDO'LYHUVLW\'DWD%DVH &1''%
LVXVXDOO\
FRQVXOWHG&1''%UHOLHVRQLQIRUPDWLRQSURYLGHGE\WKH&DOLIRUQLD'HSDUWPHQWRI)LVKDQG :LOGOLIH
&'):
86):6DQG&136DPRQJRWKHUV8QGHU&(4$WKHOLVWVNHSWE\WKHVHDQG DQ\RWKHUZLGHO\UHFRJQL]HGRUJDQL]DWLRQVDUHFRQVLGHUHGZKHQGHWHUPLQLQJWKHLPSDFWRID SURMHFW
&DOLIRUQLD(QGDQJHUHG6SHFLHV$FW
7KH&DOLIRUQLD(QGDQJHUHG6SHFLHV$FW
&(6$
)LVKDQG*DPH&RGHHWVHT
JHQHUDOO\
SDUDOOHOV)(6$,WHVWDEOLVKHVWKHSROLF\RIWKH6WDWHWRFRQVHUYHSURWHFWUHVWRUHDQGHQKDQFH WKUHDWHQHGRUHQGDQJHUHGVSHFLHVDQGWKHLUKDELWDWV6HFWLRQRIWKH&DOLIRUQLD)LVKDQG *DPH&RGHSURKLELWVWKHWDNHSRVVHVVLRQSXUFKDVHVDOHDQGLPSRUWRUH[SRUWRIHQGDQJHUHG WKUHDWHQHGRUFDQGLGDWHVSHFLHVXQOHVVRWKHUZLVHDXWKRUL]HGE\SHUPLWRUE\WKHUHJXODWLRQV ³7DNH´LVGHILQHGLQ6HFWLRQRIWKH&DOLIRUQLD)LVKDQG*DPH&RGHDVWR³KXQWSXUVXHFDWFK FDSWXUHRUNLOORUDWWHPSWWRKXQWSXUVXHFDWFKFDSWXUHRUNLOO´7KLVGHILQLWLRQGLIIHUVIURPWKH GHILQLWLRQRI³WDNH´XQGHU)(6$&(6$LVDGPLQLVWHUHGE\&'):&(6$DOORZVIRUWDNH LQFLGHQWDOWRRWKHUZLVHODZIXOSURMHFWVEXWPDQGDWHVWKDW6WDWHOHDGDJHQFLHVFRQVXOWZLWKWKH &'):WRHQVXUHWKDWDSURMHFWZRXOGQRWMHRSDUGL]HWKHFRQWLQXHGH[LVWHQFHRIWKUHDWHQHGRU HQGDQJHUHGVSHFLHV
1DWLYH3ODQW3URWHFWLRQ$FW
7KH1DWLYH3ODQW3URWHFWLRQ$FW
133$
ZDVFUHDWHGLQ
ZLWKWKHLQWHQWWRSUHVHUYHSURWHFW
DQGHQKDQFHUDUHDQGHQGDQJHUHGSODQWVLQ&DOLIRUQLD
&DOLIRUQLD)LVKDQG*DPH&RGHVHFWLRQV

WR

7KH133$LVDGPLQLVWHUHGE\&'):ZKLFKKDVWKHDXWKRULW\WRGHVLJQDWHQDWLYH SODQWVDVHQGDQJHUHGRUUDUHDQGWRSURWHFWWKHPIURP³WDNH´&'):PDLQWDLQVDOLVWRISODQW VSHFLHVWKDWKDYHEHHQRIILFLDOO\FODVVLILHGDVHQGDQJHUHGWKUHDWHQHGRUUDUH7KHVHVSHFLDO VWDWXVSODQWVKDYHVSHFLDOSURWHFWLRQXQGHU&DOLIRUQLDODZDQGSURMHFWVWKDWGLUHFWO\LPSDFWWKHP PD\QRWTXDOLI\IRUDFDWHJRULFDOH[HPSWLRQXQGHU&(4$JXLGHOLQHV )XOO\3URWHFWHG6SHFLHVDQG6SHFLHVRI6SHFLDO&RQFHUQ 7KHFODVVLILFDWLRQRI&DOLIRUQLDIXOO\SURWHFWHG
&)3
VSHFLHVZDVWKH&'):¶VLQLWLDOHIIRUWWR
LGHQWLI\DQGSURYLGHDGGLWLRQDOSURWHFWLRQWRWKRVHDQLPDOVWKDWZHUHUDUHRUIDFHGSRVVLEOH H[WLQFWLRQ/LVWVZHUHFUHDWHGIRUILVKDPSKLELDQVDQGUHSWLOHVELUGVDQGPDPPDOV0RVWRIWKH VSHFLHVRQWKHVHOLVWVKDYHVXEVHTXHQWO\EHHQOLVWHGXQGHU&(6$DQGRU)(6$7KH)LVKDQG *DPH&RGHVHFWLRQV
IRUILVKIRUDPSKLELDQDQGUHSWLOHVIRUELUGV IRUPDPPDOV
GHDOZLWK&)3VSHFLHVDQGVWDWHWKDWWKHVHVSHFLHV³«PD\QRWEHWDNHQRU SRVVHVVHGDWDQ\WLPHDQGQRSURYLVLRQRIWKLVFRGHRUDQ\RWKHUODZVKDOOEHFRQVWUXHGWR DXWKRUL]HWKHLVVXDQFHRISHUPLWVRUOLFHQVHVWRWDNHDQ\IXOO\SURWHFWHGVSHFLHV´ &'):)LVK
DQG*DPH&RPPLVVLRQ

³7DNH´RIWKHVHVSHFLHVPD\EHDXWKRUL]HGIRUQHFHVVDU\ VFLHQWLILFUHVHDUFK7KLVODQJXDJHPDNHVWKH&)3GHVLJQDWLRQWKHVWURQJHVWDQGPRVWUHVWULFWLYH UHJDUGLQJWKH³WDNH´RIWKHVHVSHFLHV,QWKHFRGHVHFWLR QVGHDOLQJZLWK&)3VSHFLHVZHUH
DPHQGHGWRDOORZWKH&'):WRDXWKRUL]HWDNHUHVXOWLQJIURPUHFRYHU\DFWLYLWLHVIRUVWDWHOLVWHG VSHFLHV

8.a
November 14, 2022

Packet Pg. 277

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&DOLIRUQLDVSHFLHVRIVSHFLDOFRQFHUQ
&66&
DUHEURDGO\GHILQHGDVDQLPDOVQRWOLVWHGXQGHU
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
&DOLIRUQLD0LJUDWRU\%LUG3URWHFWLRQ$FW
)LVK *DPH&RGHVHFWLRQVWDWHVWKDWIHGHUDODXWKRUL]DWLRQRIWDNHRUSRVVHVVLRQLVQR ORQJHUODZIXOXQGHUWKHVWDWH)LVK *DPH&RGHLIWKHIHGHUDOUXOHVRUUHJXODWLRQVDUH LQFRQVLVWHQWZLWKVWDWHODZ7KH&DOLIRUQLD0LJUDWRU\%LUG3URWHFWLRQ$FW 0%3$
ZDVSDVVHGLQ
6HSWHPEHU
WRSURYLGHDOHYHORISURWHFWLRQWRPLJUDWRU\ELUGVLQ&DOLIRUQLDFRQVLVWHQWZLWK WKH860%7$SULRUWRWKHUXOHFKDQJHOLPLWLQJSURWHFWLRQRIPLJUDWRU\ELUGVXQGHUWKH86 0%7$WRSXUSRVHIXODFWLRQV
LHGLUHFWO\DQGNQRZLQJO\UHPRYLQJDQHVWWRFRQVWUXFWDSURMHFW KXQWLQJDQGSRDFKLQJ
7KXVXQGHUWKH0%3$SURWHFWLRQVIRUPLJUDWRU\ELUGVLQ&DOLIRUQLDDUH FRQVLVWHQWZLWKUXOHVDQGUHJXODWLRQVDGRSWHGE\WKH8QLWHG6WDWHV6HFUHWDU\RIWKH,QWHULRU XQGHUWKH860%7$EHIRUH-DQXDU\7KH0%3$UHYHUWVWRH[LVWLQJSURYLVLRQVRIWKH 860%7$RQ-DQXDU\
1HVWLQJ%LUGV
1HVWLQJELUGVLQFOXGLQJUDSWRUVDUHSURWHFWHGXQGHU&DOLIRUQLD)LVKDQG*DPH&RGH6HFWLRQ ZKLFKUHDGV³,WLVXQODZIXOWRWDNHSRVVHVVRUQHHGOHVVO\GHVWUR\WKHQHVWRUHJJVRIDQ\ ELUGH[FHSWDVRWKHUZLVHSURYLGHGE\WKLVFRGHRUDQ\UHJXODWLRQPDGHSXUVXDQWWKHUHWR´,Q DGGLWLRQXQGHU&DOLIRUQLD)LVKDQG*DPH&RGH6HFWLRQ³LWLVXQODZIXOWRWDNHSRVVHVV RUGHVWUR\DQ\ELUGVLQWKHRUGHUV)DOFRQLIRUPHVRU6WULJLIRUPHV ELUGVRISUH\
RUWRWDNH
SRVVHVVRUGHVWUR\WKHQHVWRUHJJVRIDQ\VXFKELUGH[FHSWDVRWKHUZLVHSURYLGHGE\WKLVFRGH RUDQ\UHJXODWLRQDGRSWHGSXUVXDQWWKHUHWR´3DVVHULQHVDQGQRQSDVVHULQHODQGELUGVDUH IXUWKHUSURWHFWHGXQGHU&DOLIRUQLD)LVKDQG*DPH&RGH$VVXFK&'):W\SLFDOO\ UHFRPPHQGVVXUYH\VIRUQHVWLQJELUGVWKDWFRXOGSRWHQWLDOO\EHGLUHFWO\ HJDFWXDOUHPRYDORI
WUHHVYHJHWDWLRQ
RULQGLUHFWO\
HJQRLVHGLVWXUEDQFH
LPSDFWHGE\SURMHFWUHODWHGDFWLYLWLHV
'LVWXUEDQFHGXULQJWKHEUHHGLQJVHDVRQFRXOGUHVXOWLQWKHLQFLGHQWDOORVVRIIHUWLOHHJJVRU QHVWOLQJVRURWKHUZLVHOHDGWRQHVWDEDQGRQPHQW'LVWXUEDQFHWKDWFDXVHVQHVWDEDQGRQPHQW DQGRUORVVRIUHSURGXFWLYHHIIRUWLVFRQVLGHUHG³WDNH´E\&'): 1RQ*DPH0DPPDOV
6HFWLRQVRIWKH&DOLIRUQLD)LVKDQG*DPH&RGHSURWHFWVQRQJDPHPDPPDOV LQFOXGLQJEDWV6HFWLRQVWDWHV³$PDPPDORFFXUULQJQDWXUDOO\LQ&DOLIRUQLDWKDWLVQRWD JDPHPDPPDOIXOO\SURWHFWHGPDPPDORUIXUEHDULQJPDPPDOLVDQRQJDPHPDPPDO$QRQ JDPHPDPPDOPD\QRWEHWDNHQRUSRVVHVVHGH[FHSWDVSURYLGHGLQWKLVFRGHRULQDFFRUGDQFH ZLWKUHJXODWLRQVDGRSWHGE\WKHFRPPLVVLRQ´7KHQRQJDPHPDPPDOVWKDWPD\EHWDNHQRU SRVVHVVHGDUHSULPDULO\WKRVHWKDWFDXVHFURSRUSURSHUW\GDPDJH%DWVDUHFODVVLILHGDVDQRQ JDPHPDPPDODQGDUHSURWHFWHGXQGHU&DOLIRUQLD)LVKDQG*DPH&RGHLQDGGLWLRQWREHLQJ SURWHFWHGLIWKH\DUHDOLVWHGVSHFLHV
HJ&66&&)3VWDWHRUIHGHUDOWKUHDWHQHGRUVWDWHRU IHGHUDOHQGDQJHUHG

8.a
November 14, 2022

Packet Pg. 278

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
6HQVLWLYH9HJHWDWLRQ&RPPXQLWLHV
6HQVLWLYHYHJHWDWLRQFRPPXQLWLHVDUHQDWXUDOFRPPXQLWLHVDQGKDELWDWVWKDWDUHHLWKHUXQLTXHLQ FRQVWLWXHQWFRPSRQHQWVRIUHODWLYHO\OLPLWHGGLVWULEXWLRQLQWKHUHJLRQRUDUHRISDUWLFXODUO\KLJK ZLOGOLIHYDOXH7KHVHFRPPXQLWLHVPD\RUPD\QRWQHFHVVDULO\FRQWDLQVSHFLDOVWDWXVVSHFLHV 6HQVLWLYHQDWXUDOFRPPXQLWLHVDUHXVXDOO\LGHQWLILHGLQORFDORUUHJLRQDOSODQVSROLFLHVRU UHJXODWLRQVRUE\WKH&'):
LH&1''%
RUWKH86):67KH&1''%LGHQWLILHVDQXPEHURI
QDWXUDOFRPPXQLWLHVDVUDUHZKLFKDUHJLYHQWKHKLJKHVWLQYHQWRU\SULRULW\ +ROODQG

&'):
,PSDFWVWRVHQVLWLYHQDWXUDOFRPPXQLWLHVDQGKDELWDWVPXVWEHFRQVLGHUHGDQG HYDOXDWHGXQGHU&(4$
&&5
7LWOH'LY&KDS$SSHQGL[*

3RUWHU&RORJQH:DWHU4XDOLW\&RQWURO$FW
7KHLQWHQWRIWKH3RUWHU&RORJQH:DWHU4XDOLW\&RQWURO$FW 3RUWHU&RORJQH
LVWRSURWHFWZDWHU
TXDOLW\DQGWKHEHQHILFLDOXVHVRIZDWHUDQGLWDSSOLHVWRERWKVXUIDFHDQGJURXQGZDWHU8QGHU WKLVODZWKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUGGHYHORSVVWDWHZLGHZDWHUTXDOLW\SODQVDQG WKH5:4&%VGHYHORSEDVLQSODQVZKLFKLGHQWLI\EHQHILFLDOXVHVZDWHUTXDOLW\REMHFWLYHVDQG LPSOHPHQWDWLRQSODQV7KH5:4&%VKDYHWKHSULPDU\UHVSRQVLELOLW\WRLPSOHPHQWWKH SURYLVLRQVRIERWKVWDWHZLGHDQGEDVLQSODQV:DWHUVUHJXODWHGXQGHU3RUWHU&RORJQHUHIHUUHG WRDV³ZDWHUVRIWKH6WDWH´LQFOXGHLVRODWHGZDWHUVWKDWDUHQRWUHJXODWHGE\WKH86$&( 3URMHFWVWKDWUHTXLUHD86$&(SHUPLWRUIDOOXQGHURWKHUIHGHUDOMXULVGLFWLRQDQGKDYHWKH SRWHQWLDOWRLPSDFWZDWHUVRIWKH6WDWHDUHUHTXLUHGWRFRPSO\ZLWKWKHWHUPVRIWKH:DWHU 4XDOLW\&HUWLILFDWLRQ3URJUDP,IDSURSRVHGSURMHFWGRHVQRWUHTXLUHDIHGHUDOOLFHQVHRUSHUPLW DQ\SHUVRQGLVFKDUJLQJRUSURSRVLQJWRGLVFKDUJHZDVWH HJVRLO
WRZDWHUVRIWKH6WDWHPXVW
ILOHD1RWLFHRI,QWHQW
12,
RUD5HSRUWRI:DVWH'LVFKDUJHDQGUHFHLYHHLWKHUZDVWHGLVFKDUJH UHTXLUHPHQWV
:'5V
RUDZDLYHUWR:'5VEHIRUHEHJLQQLQJWKHGLVFKDUJH
6WDWHDQG/RFDO5HTXLUHPHQWVWR&RQWURO&RQVWUXFWLRQ3KDVHDQG3RVW&RQVWUXFWLRQ:DWHU 4XDOLW\,PSDFWV
&RQVWUXFWLRQ3KDVH7KH&:$KDVQDWLRQDOO\UHJXODWHGWKHGLVFKDUJHRISROOXWDQWVWRWKHZDWHUV RIWKH86IURPDQ\SRLQWVRXUFHVLQFH
,Q
DPHQGPHQWVWRWKH&:$DGGHG6HFWLRQ

S
ZKLFKHVWDEOLVKHGDIUDPHZRUNIRUUHJXODWLQJQRQSRLQWVRXUFHVWRUPZDWHUGLVFKDUJHV XQGHUWKH1DWLRQDO3ROOXWDQW'LVFKDUJH(OLPLQDWLRQ6\VWHP 13'(6
7KH13'(6LVD
SHUPLWWLQJV\VWHPIRUWKHGLVFKDUJHRIDQ\SROOXWDQW
H[FHSWIRUGUHGJHRUILOOPDWHULDO
LQWR
ZDWHUVRIWKH86,Q&DOLIRUQLDWKLVSHUPLWSURJUDPLVDGPLQLVWHUHGE\WKH5:4&%V7KH 13'(6*HQHUDO&RQVWUXFWLRQ3HUPLWUHTXLUHPHQWVDSSO\WRFOHDULQJJUDGLQJDQGGLVWXUEDQFHV WRWKHJURXQGVXFKDVH[FDYDWLRQ&RQVWUXFWLRQDFWLYLWLHVRQRQHRUPRUHDFUHVDUHVXEMHFWWRD VHULHVRISHUPLWWLQJUHTXLUHPHQWVFRQWDLQHGLQWKH13'(6*HQHUDO&RQVWUXFWLRQ3HUPLW7KLV SHUPLWUHTXLUHVWKHSUHSDUDWLRQDQGLPSOHPHQWDWLRQRID6WRUPZDWHU3ROOXWLRQ3UHYHQWLRQ3ODQ

6:333
WKDWLQFOXGHV%HVW0DQDJHPHQW3UDFWLFHV
%03V
WREHLPSOHPHQWHGGXULQJSURMHFW
FRQVWUXFWLRQ7KHSURMHFWVSRQVRULVDOVRUHTXLUHGWRVXEPLWD1RWLFHRI,QWHQW 12,
ZLWKWKH
6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG'LYLVLRQRI:DWHU4XDOLW\7KH12,LQFOXGHVJHQHUDO LQIRUPDWLRQRQWKHW\SHVRIFRQVWUXFWLRQDFWLYLWLHVWKDWZRXOGRFFXUDVSDUWRIWKHSURSRVHG SURMHFW
/RFDO
&LW\RI6DQ&DUORV0XQLFLSDO&RGH±,QWHULP3URWHFWHG7UHH2UGLQDQFH $OO³3URWHFWHG7UHHV´LQWKH&LW\RI6DQ&DUORVUHTXLUHDSHUPLWEHIRUHSUXQLQJRUPRUHRI WKHWUHHDQGRUUHPRYDORIWKHWUHH$OOWUHHVXQGHUWKHFDWHJRULHVRI³6LJQLILFDQW´DQG³+HULWDJH´ DUHFRQVLGHUHGD3URWHFWHG7UHH
$³6LJQLILFDQW7UHH´LVGHILQHGDVDQ\WUHHZLWKDFLUFXPIHUHQFHRILQFKHVRUJUHDWHUDW LQFKHVDERYHQDWXUDOJUDGH7KHIROORZLQJWUHHVDUHQRWFRQVLGHUHG³6LJQLILFDQW7UHHV´ UHJDUGOHVVRIWKHLUVL]H
EDLOH\DFDFLD
$FDFLDEDLOH\DQD
JUHHQDFDFLD
$FDFLDGHGXUUHQV

8.a
November 14, 2022

Packet Pg. 279

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
EODFN$FDFLD
$FDFLDPHODQR[\ORQ
7UHHRI+HDYHQ
$LOLDQWKXVDOWLVVLPD
0RQWHUH\SLQH
3LQXV

UDGLDWD
HXFDO\SWXVVSSDQGIUXLWWUHHVRIDQ\NLQG
$³+HULWDJH7UHH´LVGHILQHGDVKDYLQJDFHUWDLQFLUFXPIHUHQFHDWLQFKHVDERYHQDWXUDOJUDGH DQGLQFOXGHVWKHIROORZLQJVSHFLHV

x VLQJOHPXOWLVWHP´&DOLIRUQLDEXFNH\H
$HVFXOXVFDOLIRUQLFD

x VLQJOHPXOWLVWHP´SDFLILFPDGURQH
$UEXWXVPHQ]LHVLL

x VLQJOHPXOWLVWHP ´FRDVWOLYHRDN
4XHUFXVDJULIROLD

x VLQJOHPXOWLVWHP´YDOOH\RDN
4XHUFXVOREDWD
VLQJOHPXOWLVWHP´EOXHRDN

4XHUFXVGRXJODVVLL

x VLQJOHPXOWLVWHP´LQWHULRUOLYHRDN
4XHUFXVZLVOL]HQLL

x VLQJOHPXOWLVWHP´FRDVWUHGZRRG
6HTXRLDVHPSHUYLUHQV
DQGVLQJOHPXOWLVWHP
´&DOLIRUQLDED\ODXUHO
8PEHOOXODULDFDOLIRUQLFD

7KHJRDORIWKH,QWHULP3URWHFWHG7UHH2UGLQDQFHLVWRHQVXUHFRQWLQXHGFDQRS\FRYHULV PDLQWDLQHGRULQFUHDVHG7KHUHSODFHPHQWWUHH
V
VKRXOGWKHUHIRUHEHHLWKHUDKHULWDJHWUHH
VSHFLHV
DVOLVWHGDERYH
RUEHDQLQNLQGUHSODFHPHQWXQOHVVWKHUHSODFHPHQWLVDQLQYDVLYH VSHFLHVRUWKHVSHFLHVLVXQVXLWDEOHIRUDJLYHQORFDWLRQDVGHWHUPLQHGE\DFHUWLILHGDUERULVW 7KHVL]HRIWKHUHSODFHPHQWWUHHLVGHWHUPLQHGE\WKH&RPPXQLW\'HYHORSPHQW'LUHFWRU 6DQ
&DUORV

'LVFXVVLRQ
:RXOGWKHSURMHFW

D
+DYH D VXEVWDQWLDO DGYHUVH HIIHFW HLWKHU GLUHFWO\ RU WKURXJ K KDELWDW PRGLILFDWLRQV RQ DQ\ VSHFLHV LGHQWLILHG DV D FDQGLGDWH VHQVLWLYH RU VSHFLDO VWDWXV VSHFLHV LQ ORFDO RU UHJLRQDO SODQV SROLFLHV RU UHJXODWLRQV RU E\ WKH &DOLIRUQLD'HSDUWPHQWRI)LVKDQG:LOGOLIHRU86)LVKDQG:LOGOLIH6HUYLFH" /HVVWKDQ6LJQLILFDQW,PSDFWZLWK0LWLJDWLRQ,QFRUSRUDWHG7KHSURMHFW¶VSRWHQWLDOLPSDFWV RQVSHFLDOVWDWXVVSHFLHVDQGQHVWLQJELUGVDUHGLVFXVVHGEHORZ 6SHFLDOVWDWXV6SHFLHV
)RUWKHSXUSRVHVRIWKLV&(4$GRFXPHQWVSHFLDOVWDWXVVSHFLHVLQFOXGHWKRVHSODQWDQG DQLPDOVOLVWHGSURSRVHGIRUOLVWLQJRUFDQGLGDWHVIRUOLVWLQJDVWKUHDWHQHGRUHQGDQJHUHGE\ 86):6RU12$$XQGHUWKH)(6$
WKRVHOLVWHGRUSURSRVHGIRUOLVWLQJDVUDUHWKUHDWHQHGRU HQGDQJHUHGE\&'):XQGHUWKH&(6$
DQLPDOVGHVLJQDWHGDV)XOO\3URWHFWHGRU6SHFLHVRI
6SHFLDO&RQFHUQE\WKH&'):
DQGSODQWVOLVWHGDV5DQN$%DQGRIWKH&DOLIRUQLD 1DWLYH3ODQW6RFLHW\,QYHQWRU\RI5DUHDQG(QGDQJHUHG3ODQWV &136,QYHQWRU\

6SHFLDO6WDWXV3ODQWV$OLVWRIVSHFLDOVWDWXVSODQWVZLWKVRPHSRWHQWLDOIRURFFXUUHQFHLQWKH SURMHFWYLFLQLW\ZDVFRPSLOHGXVLQJWKH&136,QYHQWRU\RI5DUHDQG(QGDQJHUHG3ODQWV &136

DQG&1''%UHFRUGV
&1''%
DQGUHYLHZHGIRUWKHLUSRWHQWLDOWRRFFXURQWKH
SURMHFWVLWH%DVHGRQDQDQDO\VLVRIWKHGRFXPHQWHGKDELWDWUHTXLUHPHQWVDQGRFFXUUHQFH UHFRUGVDVVRFLDWHGZLWKWKHVHVSHFLHVDOOZHUHGHWHUPLQHGWREHDEVHQWIURPWKHSURMHFWVLWH 7KHVHVSHFLHVZHUHFRQVLGHUHGDEVHQWIURPWKHSURMHFWVLWHGXHWRLWVPRVWO\GHYHORSHGRU GLVWXUEHGKDELWDWFRQGLWLRQV7KXVWKHSURMHFWZRXOGKDYHQRLPSDFWRQVSHFLDOVWDWXVSODQWV 6SHFLDO6WDWXV$QLPDOV7KRVHVSHFLDOVWDWXVDQLPDOVSHFLHVWKDWZHUHFRQVLGHUHGIRUWKHLU SRWHQWLDOWRRFFXURQWKHSURMHFWVLWHLQFOXGHWKHIHGHUDOO\WKUHDWHQHG&HQWUDO&DOLIRUQLD&RDVW VWHHOKHDG
2QFKRUK\QFKXVP\NLVV
DQG&DOLIRUQLDUHGOHJJHGIURJ
5DQDGUD\WRQLL
DIHGHUDOO\
WKUHDWHQHGDQG&DOLIRUQLDVSHFLHVRIVSHFLDOFRQFHUQ

8.a
November 14, 2022

Packet Pg. 280

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&DOLIRUQLDUHGOHJJHGIURJ
5DQDGUD\WRQLL
$OWKRXJKWKHUHLVSRWHQWLDOO\VXLWDEOHDTXDWLFKDELWDW IRUWKH&DOLIRUQLDUHGOHJJHGIURJWKHFKDQQHODQGVXUURXQGLQJDUHDDUHXQVXLWDEOHIRUWKLV VSHFLHVGXHWRWKHODFNRIVXLWDEOHXSODQGKDELWDWDQGXUEDQQDWXUHRIWKH+ROO\6WUHHW ,QGXVWULDO5RDGLQWHUVHFWLRQDQGWKH+ROO\6WUHHW86LQWHUVHFWLRQ7KHRQO\UHFRUGHG RFFXUUHQFHRI&DOLIRUQLDUHGOHJJHGIURJLVDSSUR[LPDWHO\PLOHVWRWKHZHVW &1''%

7KHVLWHLVLVRODWHGIURPWKLVNQRZQSRSXODWLRQE\WKHVXUURXQGLQJGHYHORSPHQWDQGRWKHUZLVH XQVXLWDEOHKDELWDWZKLFKGRHVQRWSURYLGHKDELWDWFRQQHFWLYLW\WRWKHSURMHFWVLWH7KHUHIRUH &DOLIRUQLDUHGOHJJHGIURJLVKLJKO\XQOLNHO\WRRFFXUZLWKLQWKHSURMHFWVLWH &HQWUDO&DOLIRUQLD&RDVWVWHHOKHDG
2QFKRUK\QFKXVP\NLVV
$OWKRXJKWKHUHLVDTXDWLFKDELWDW
SUHVHQWDWWKHVWRUPGUDLQFKDQQHOLWODFNVVXLWDEOHVSDZQLQJKDELWDW HJJUDYHOVXEVWUDWH
DQG
VXSSRUWVQXPHURXVEDUULHUVWRPRYHPHQWLQFOXGLQJVHYHUDOWLGDOJDWHVDQGXQGHUJURXQG FXOYHUWV)XUWKHUPRUHVWHHOKHDGDUHQRWNQRZQIURPWKLVVWRUPGUDLQFKDQQHO /HLG\

7KHUHIRUH&HQWUDO&DOLIRUQLD&RDVWVWHHOKHDGLVQRWH[SHFWHGWRRFFXUZLWKLQWKHSURMHFWVLWH 7KHUHLVQR86):6GHVLJQDWHGFULWLFDOKDELWDWRQRUQHDUWKHSURMHFWVLWH 86):6
7KXV
WKHSURMHFWZRXOGKDYHQRLPSDFWRQFULWLFDOKDELWDW
1HVWLQJ%LUGV
1HVWLQJELUGVLQFOXGLQJUDSWRUVSURWHFWHGXQGHUWKH0%7$DQG&DOLIRUQLD)LVKDQG*DPH&RGH DUHSRWHQWLDOO\SUHVHQWLQWKHWUHHVDQGVKUXEVLQWKHSURMHFWDUHD%LUGVWKDWSRWHQWLDOO\QHVWLQ WKHGHYHORSHGDQGODQGVFDSHGDUHDVZLWKLQDQGDGMDFHQWWRWKHSURMHFWVLWHPD\EHSURQHWR GLVWXUEDQFH,IFRQVWUXFWLRQDFWLYLWLHVRFFXUGXULQJWKHDYLDQEUHHGLQJVHDVRQ )HEUXDU\WR
6HSWHPEHU
LQMXU\WRLQGLYLGXDOVRUQHVWDEDQGRQPHQWFRXOGRFFXU&RQVWUXFWLRQQRLVHDQG LQFUHDVHGDFWLYLW\RQWKHVLWHFRXOGWHPSRUDULO\GLVWXUEQHVWLQJRUIRUDJLQJDFWLYLWLHVSRWHQWLDOO\ UHVXOWLQJLQWKHDEDQGRQPHQWRIQHVWVLWHV$GGLWLRQDOO\WKHUHPRYDORIWKHRQHWUHHRQWKH SURMHFWVLWH
DLQFK3UXQXVVSPHDVXUHGDWLQFKHVDERYHJUDGH
DQGSRWHQWLDOO\VHYHUDO
WUHHVIRUWKHSHGHVWULDQEULGJHFRXOGLPSDFWQHVWLQJELUGV $VD&2$IRUWKHSURSRVHGSURMHFWWKH&LW\ZRXOGUHTXLUHWKHLPSOHPHQWDWLRQRIWKHIROORZLQJ PHDVXUHVWRDYRLGDQGRUPLQLPL]HLPSDFWVRQDFWLYHQHVWVRIELUGVSURWHFWHGE\WKH0%7$DQG WKH&DOLIRUQLD)LVKDQG*DPH&RGH
VHH7DEOH

&2$
7RHQVXUHWKDWSURMHFWDFWLYLWLHVFRPSO\ZLWKWKH0LJUDWRU\%LUG7UHDW\$FWDQG &DOLIRUQLD)LVKDQG*DPH&RGHWKHIROORZLQJPHDVXUHVVKDOOEHLPSOHPHQWHG
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
JUDVVODQGVDQGEXLOGLQJV
LQDQGLPPHGLDWHO\DGMDFHQWWRWKHLPSDFWDUHDVIRU
QHVWV,IDQDFWLYHQHVWLVIRXQGVXIILFLHQWO\FORVHWRZRUNDUHDVWREHGLVWXUEHGE\ WKHVHDFWLYLWLHVWKHELRORJLVWZLOOGHWHUPLQHWKHH[WHQWRIDFRQVWUXFWLRQIUHH EXIIHU]RQHWREHHVWDEOLVKHGDURXQGWKHQHVW
W\SLFDOO\IWIRUUDSWRUVDQG
IWIRURWKHUVSHFLHVDVUHFRPPHQGHGE\WKH&DOLIRUQLD'HSDUWPHQWRI)LVKDQG :LOGOLIH
WRHQVXUHWKDWQRQHVWVRIVSHFLHVSURWHFWHGE\WKH0LJUDWRU\%LUG 7UHDW\$FWDQG&DOLIRUQLD)LVKDQG*DPH&RGHZLOOEHGLVWXUEHGGXULQJSURMHFW LPSOHPHQWDWLRQ

8.a
November 14, 2022

Packet Pg. 281

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
F ,IFRQVWUXFWLRQDFWLYLWLHVZLOOQRWEHLQLWLDWHGXQWLODIWHUWKHVWDUWRIWKHQHVWLQJ VHDVRQDOOSRWHQWLDOQHVWLQJVXEVWUDWHV
HJEXVKHVWUHHVJUDVVHVDQGRWKHU

YHJHWDWLRQ
WKDWDUHVFKHGXOHGWREHUHPRYHGE\WKH3URMHFWEHUHPRYHGSULRUWR WKHVWDUWRIWKHQHVWLQJVHDVRQ
HJSULRUWR)HEUXDU\
7KLVZLOOSUHFOXGHWKH
LQLWLDWLRQRIQHVWVLQWKLVYHJHWDWLRQDQGSUHYHQWWKHSRWHQWLDOGHOD\RIWKH3URMHFW GXHWRWKHSUHVHQFHRIDFWLYHQHVWVLQWKHVHVXEVWUDWHV %LUG&ROOLVLRQV
7KHSURMHFWLQYROYHVUHGHYHORSLQJDZLQGRZOHVVVLQJOHVWRU\VHOIVWRUDJHIDFLOLW\ZLWKDVL[VWRU\ EXLOGLQJZLWKDJODVVIDFDGH*ODVVZLQGRZVDQGIDFDGHVKDYHWKHSRWHQWLDOWRFDXVHLQMXU\RU PRUWDOLW\WRELUGVZKHQELUGVFROOLGHZLWKWKHVHVXUIDFHV%LUGVGRQRWSHUFHLYHJODVVDVDQ REVWUXFWLRQLQWKHVDPHZD\WKDWKXPDQVGR$VDUHVXOWWKH\PD\FROOLGHZLWKJODVVZDOOVRU ZLQGRZVLIWKHJODVVUHIOHFWVWKHVN\RUQHDUE\YHJHWDWLRQDQGLVQRWSHUFHLYHGDVDQ REVWUXFWLRQZKHQWUDQVSDUHQWJODVVDSSHDUVWREHDFOHDUSDWKZD\RUZKHQYHJHWDWLRQEHKLQG WUDQVSDUHQWJODVV
VXFKDVEHKLQGJODVVUDLOLQJV
DSSHDUVXQREVWUXFWHG
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
6)3ODQQLQJ'HSDUWPHQW
7KHSURSRVHGEXLOGLQJZRXOGEHJOD]HGIURP
DERXWIHHWWRDERXWIHHWDERYHJUDGH*OD]LQJVWDUWVWREHDKD]DUGWRELUGVDWDERXW VTXDUHIHHWLQVL]HDQGWKHEXLOGLQJKDVH[SDQVHVRIJODVVWKDWH[FHHGWKDWVL]H %HFDXVHWKHORZHUIHHWRIWKHEXLOGLQJZRXOGQRWKDYHJOD]LQJ WKDWZRXOGLPSDFWELUGV
WKH
SRWHQWLDOLPSDFWLVVLJQLILFDQWO\UHGXFHG7KHSURMHFWSURSRVHVWRXVH*XDUGLDQ*ODVVZLWKD 61;FRDWLQJDQGDJODVVIULWSDWWHUQRQWKHVRXWKHDVWFRUQHURIWKHEXLOGLQJ 50:

6KHHW$
7KHIULWSDWWHUQPD\EHPRUHYLVLEOHWRELUGVDQGUHGXFHWKHOLNHOLKRRGRIFROOLVLRQ LQWKDWDUHDGHSHQGLQJRQWKHGHVLJQ
7KHXVHRIJODVVZLWKDOLJKWUHIOHFWDQFHRIDOVRUHGXFHVFROOLVLRQKD]DUGWRELUGV $%&
%LUGV
$FFRUGLQJWRWKH*ODUH6WXG\SUHSDUHGIRUWKHSURMHFW³WKHEXLOGLQJ¶VVSHFLILHG JODVVKDVH[WHULRUYLVXDOUHIOHFWDQFHZKLFKLVQRWFRQVLGHUHG³KLJKO\UHIOHFWLYH´ZKLOHWKH RULHQWDWLRQRIWKHEXLOGLQJ¶VHOHYDWLRQVZRUNWROLPLWWKHWLPHVZKHQDQGWKHDUHDVZKHUH UHIOHFWLRQVDUHYLVLEOH´
VHH$SSHQGL[$

7KHUHDUHQRDGRSWHG6DQ0DWHR&RXQW\RU&LW\RI6DQ&DUORVELUGVDIHVWDQGDUGV'HVSLWH VRPHRIWKHELUGIULHQGO\GHVLJQIHDWXUHVRIWKHEXLOGLQJWKHUHFRXOGEHDFXPXODWLYHO\ VLJQLILFDQWORVVRIELUGVRYHUWLPHDQGLQDGGLWLRQWRELUGORVVIURPRWKHUVLPLODUEXLOGLQJVSODQQHG LQ6DQ&DUORV7KHFXPXODWLYHLPSDFWLVSRWHQWLDOO\VLJQLILFDQWXQGHU&(4$ $FFRUGLQJO\WKH&LW\ZRXOGLPSOHPHQW0LWLJDWLRQ0HDVXUH%,2WRPLQLPL]HWKHORVVRIELUGVE\ ZLQGRZVWULNH
,PSDFW%,2
7KHQHZVL[VWRU\EXLOGLQJZLOOLQWURGXFHQHZJODVVIDFDGHVWKDWFRXOG UHVXOWLQELUGFROOLVLRQVWKDWLQMXUHVRUNLOOVELUGV7KLVPD\UHVXOWLQDFXPXODWLYHORVVRI

8.a
November 14, 2022

Packet Pg. 282

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
ELUGVRYHUWLPHDQGLQDGGLWLRQWRRWKHUVLPLODUEXLOGLQJVSODQQHGLQ6DQ&DUORVWKDWLVD SRWHQWLDOO\VLJQLILFDQWLPSDFWXQGHU&(4$
0LWLJDWLRQ0HDVXUH%,2
%LUGVDIH'HVLJQ7KHSURMHFWVKDOOLPSOHPHQWWKHIROORZLQJ ELUGVDIHGHVLJQFRQVLGHUDWLRQV

x 8VHJOD]LQJRUZLQGRZFRDWLQJV PDUNLQJVWKDWUHGXFHELUGVWULNHKD]DUGFDXVHG E\WUDQVSDUHQF\UHIOHFWDQFHEODFNKROHRUSDVVDJHHIIHFWHWFVXFKDV *XDUGLDQ%LUGVWHWFKJODVVRUVLPLODU6HHUHFRPPHQGDWLRQVE\WKH$PHULFDQ %LUG&RQVHUYDWRU\DWKWWSV
DEFELUGVRUJ
x 0LQLPL]HSODQWVRUODQGVFDSHGDU HDVEHKLQGJODVVRURQWKHURRIWRS x 0LQLPL]HFRQFHQWUDWLRQVRISODQWL QJVDGMDFHQWWRJODVVIDFDGHV (IIHFWLYHQHVV
:LOOPLQLPL]HELUGFROOLVLRQVDQGDYRLGDVLJQLILFDQWFXPXODWLYHLPSDFW ,PSOHPHQWDWLRQ
%\WKH$SSOLFDQWRULWVFRQWUDFWRU
7LPLQJ
'XULQJWKHGHVLJQSKDVH
0RQLWRULQJ
7KH&LW\VKDOOYHULI\GXULQJSODQFKHFNWKDWWKHSURMHFWKDV LQFRUSRUDWHGDGGLWLRQDOELUGFROOLVLRQDYRLGDQFHPHDVXUHVWRPLQLPL]H ELUGGHDWKVFDXVHGE\FROOLVLRQZLWKEXLOGLQJZLQGRZV E
+DYH D VXEVWDQWLDO DGYHUVH HIIHFW RQ DQ\ ULSDULDQ KDELWDW RU RWKHU VHQVLWLYH QDWXUDOFRPPXQLW\LGHQWLILHGLQORFDORUUHJLRQDOSODQVSROLFL HVUHJXODWLRQVRU E\ WKH &DOLIRUQLD 'HSDUWPHQW RI )LVK DQG :LOGOLIH RU 86 )LVK DQ G :LOGOLIH 6HUYLFH"
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¶VMXULVGLFWLRQ7KHSHUPLWVPD\LQFOXGHD/DNHDQG 6WUHDPEHG$OWHUDWLRQ$JUHHPHQW
/6$$
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
7KHSURMHFWDOVRSURSRVHVWRFRQVWUXFWDQHZVWRUPGUDLQRXWIDOOLQWRWKLVGUDLQDJHGLWFK VHH
)LJXUH
7KHQHZVWRUPGUDLQRXWIDOOZRXOGUHTXLUH&'):DQG5:4&%SHUPLWVDQGZRXOG UHTXLUHDXWKRUL]DWLRQIURPWKH86$&(LILWH[WHQGVEHORZWKHRUGLQDU\KLJKZDWHUPDUN

8.a
November 14, 2022

Packet Pg. 283

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,PSDFW%,27KHSURSRVHGSDWKZD\LPSDFWVWKHFKDQQHODQGUHTXLUHVSHUPLWVIURP &DOLIRUQLD'HSDUWPHQWRI)LVKDQG:LOGOLIH
&'):
5HJLRQDO:DWHU4XDOLW\&RQWURO
%RDUG
5:4&%
DQG86$UP\&RUSVRI(QJLQHHUV
86$&(
7KHSURMHFWPD\DOVR
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
:LOOUHGXFHSURMHFWLPSDFWVWRWKHULSDULDQ]RQHDQGGUDLQDJHFKDQQHO ,PSOHPHQWDWLRQ
%\WKH$SSOLFDQWRULWVFRQWUDFWRU
7LPLQJ
3ULRUWREULGJHSDWKZD\FRQVWUXFWLRQDQGVLWHJUDGLQJ 0RQLWRULQJ
7KH&LW\VKDOOYHULI\WKDWWKH$SSOLFDQWKDVREWDLQHGWKHQHFHVVDU\ DSSURYDOVIRUWKHSDWKZD\EULGJHIURP&DOWUDQVDQGVWDWHDQGIHGHUDO UHVRXUFHDJHQFLHVDVDSSURSULDWH
F
+DYH D VXEVWDQWLDO DGYHUVH HIIHFW RQ VWDWH RU IHGHUDOO\ SURW HFWHG ZHWODQGV

LQFOXGLQJ EXW QRW OLPLWHG WR PDUVK YHUQDO SRRO FRDVWDO HWF WKURXJK GLUHFW
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
QDWLYHRDN
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

ZRXOGUHVXOWLQLPSDFWVWKDWUHTXLUHD/6$$IURP&'):DQGDSHUPLWIURPWKH5:4&%,I WKHIRRWLQJ
V
UHVXOWLQILOOZLWKLQWKHRUGLQDU\KLJKZDWHUPDUNZLWKLQWKHFKDQQHOEHGD
$OWKRXJKWKHSUHOLPLQDU\GHWDLOVUHJDUGLQJWKHSHGHVWULDQSDWKZD\GRQRWPHQWLRQWKHUHPRYDORIDQ\ WUHHVWKHUHDUHIRXUWUHHVLQWKHSDWKZD\DOLJQPHQW

8.a
November 14, 2022

Packet Pg. 284

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
SHUPLWZRXOGDOVREHUHTXLUHGXQGHUWKH&:$IURPWKH86$&(7KH$SSOLFDQWZRXOGEH UHTXLUHGWRZRUNZLWK&DOWUDQVZKLFKRZQVWKHSURSHUW\DQGWRREWDLQWKHQHFHVVDU\SHUPLWV 7KHSHUPLWVZRXOGLQFOXGHVSHFLILFFRQGLWLRQVWRDGGUHVVWKHLPSDFWVGHWHUPLQHGE\D MXULVGLFWLRQDOGHOLQHDWLRQDQGIXUWKHUGHVLJQUHYLHZ
3RWHQWLDOLPSDFWVWRZHWODQGVZRXOGEHOHVVWKDQVLJQLILFDQWZLWK0LWLJDWLRQ%,2 G
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
VHHGLVFXVVLRQXQGHUFULWHULRQD
IRU%LUG
&ROOLVLRQV
7KHQXPEHURIELUGVWKDWPD\SRWHQWLDOO\EHLQMXUHGRUNLOOHGFRPSDUHGWRH[LVWLQJ FRQGLWLRQVLVSRWHQWLDOO\FXPXODWLYHO\VLJQLILFDQWXQGHU&(4$6HH0LWLJDWLRQ%,2ZKLFK DGGUHVVHVWKLVLVVXH
H
&RQIOLFWZLWKDQ\ORFDOSROLFLHVRURUGLQDQFHVSURWHFWLQJEL RORJLFDOUHVRXUFHV VXFKDVDWUHHSUHVHUYDWLRQSROLF\RURUGLQDQFH"
/HVV7KDQ6LJQLILFDQWZLWK0LWLJDWLRQ,QFRUSRUDWHG2QHWUHHRQWKHSURMHFWVLWHZRXOGEH UHPRYHGXQGHULPSOHPHQWDWLRQRIWKHSURSRVHGSURMHFW7KHSURMHFWPD\DOVRUHTXLUHWKH UHPRYDORIIRXUWUHHVIRUWKHSDWKZD\EULGJHDQGWULPPLQJRIVRPHWUHHV7KHJHRWHFKQLFDO UHSRUWLQGLFDWHVWKDWWKHFKDQQHOEDQNKDVORZVWDELOLW\,IFRQVWUXFWLRQPHDVXUHVWKDWDGGUHVV WKHEDQNVWDELOLW\LPSDFWWUHHVZLWKLQWKHGULSOLQHLWLVSRVVLEOHWKDWWKHSURMHFWZRXOGUHVXOWLQ DGGLWLRQDOORVVRIWUHHV
$OWKRXJKWKHSUHOLPLQDU\GHWDLOVUHJDUGLQJWKHSHGHVWULDQSDWKZD\GRQRWPHQWLRQWKHUHPRYDO RIDQ\WUHHVWKHUHDUHIRXUWUHHVLQWKHSDWKZD\DOLJQPHQW7KHVHWUHHVKRZHYHUDUHQRQ QDWLYHWUHHVWKDWDUHQRWVXEMHFWWRWKHSURYLVLRQVRIWKH&LW\¶V,QWHULP3URWHFWHG7UHH2UGLQDQFH 2QO\RQHWUHHVSHFLHVWKDWPD\EHUHPRYHG
FRDVWOLYHRDN
ZRXOGEHVXEMHFWWRWKHWUHH
SURWHFWLRQRUGLQDQFH,QDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH&LW\RI6DQ&DUORV¶WUHH RUGLQDQFHLIDQ\SURWHFWHGWUHHVDUHUHPRYHGRUWULPPHGWKHSURMHFWZRXOGEHUHTXLUHGWR FRPSO\ZLWKVWDQGDUG&LW\RI6DQ&DUORVWUHHUHPRYDOSHUPLWFRQGLWLRQVDQGUHSODFHWKHWUHHV WKDWDUHUHPRYHGLQDFFRUGDQFHZLWKWKHVHWUHHUHPRYDOSROLFLHV6XFKFRPSOLDQFHZRXOG UHGXFHDQ\SRWHQWLDOLPSDFWVGXHWRFRQIOLFWVZLWKWKH&LW\¶VWUHHSUHVHUYDWLRQRUGLQDQFHWROHVV WKDQVLJQLILFDQWOHYHOVXQGHU&(4$

8.a
November 14, 2022

Packet Pg. 285

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,PSDFW%,27KHSURMHFWPD\UHTXLUHWKHUHPRYDORIWUHHVWKDWDUHVXEMHFWWRWKH&LW\¶V ,QWHULP3URWHFWHG7UHH2UGLQDQFH7KHSURMHFWPD\DOVRUHVXOWLQGDPDJHWRWUHHVDORQJ WKHGUDLQDJHZLWKLQWKH&DOWUDQVULJKWRIZD\
0LWLJDWLRQ%,23URWHFWLRQRI7UHHV7KHSURMHFWSURSRQHQWVKDOOREWDLQDSHUPLWWR UHPRYHDQ\WUHH
V
SURWHFWHGXQGHUWKH&LW\¶V,QWHULP3URWHFWHG7UHH2UGLQDQFHDV GHWHUPLQHGE\DQDUERULVWDQGVKDOODOVRSUHSDUHDWUHHSURWHFWLRQSODQWKDWLQFOXGHVD PDSRIWKHWUHHSURWHFWLRQ]RQHDQGLVLQFOXGHGLQWKHFRQVWUXFWLRQGUDZLQJVDQGELG SDFNDJH5HPRYHGWUHHVZLOOEHUHSODFHGLQDFFRUGDQFHZLWKWKHRUGLQDQFHDWWKH GLVFUHWLRQRIWKH&RPPXQLW\'HYHORSPHQW'LUHFWRU,IDQ\UHPRYHGWUHHVDUHZLWKLQWKH MXULVGLFWLRQRI&DOLIRUQLD'HSDUWPHQWRI)LVKDQG:LOGOLIH &'):
DQG&'):LVVXHVD
/DNHDQG6WUHDPEHG$JUHHPHQWIRUWKHSURMHFWWKHWUHHUHSODFHPHQWUDWLRVVKDOOFRPSO\ ZLWK&'):UHTXLUHPHQWV
(IIHFWLYHQHVV :LOODVVXUHWKDWWUHHFDQRS\LVPDLQWDLQHGLQWKH&LW\RI6DQ&DUORVDV LQWHQGHGE\WKH,QWHULP7UHH3URWHFWLRQ2UGLQDQFHDQGWKDWWUHHVWR UHPDLQDUHSURWHFWHGGXULQJFRQVWUXFWLRQ
,PSOHPHQWDWLRQ%\WKH$SSOLFDQWRULWVFRQWUDFWRU
7LPLQJ 3ULRUWRWUHHWULPPLQJRUUHPRYDO
0RQLWRULQJ &HUWLILHG$UERULVW5HSRUWWUHHSURWHFWLRQSODQUHYLHZE\W KH &RPPXQLW\'HYHORSPHQW'LUHFWRU
I
&RQIOLFW ZLWK WKH SURYLVLRQV RI DQ DGRSWHG +DELWDW &RQVHUYDWLRQ 3ODQ 1DWXUDO &RPPXQLW\ &RQVHUYDWLRQ 3ODQ RU RWKHU DSSURYHG ORFDO UHJLRQDO RU VWDWH KDELWDWFRQVHUYDWLRQSODQ"
1R,PSDFW7KHSURMHFWVLWHLVQRWORFDWHGZLWKLQDQDUHDFRYHUHGE\DQDGRSWHG+DELWDW &RQVHUYDWLRQ3ODQ1DWXUDO&RPPXQLW\&RQVHUYDWLRQ3ODQRURWKHUDSSURYHGORFDOUHJLRQDORU VWDWHKDELWDWFRQVHUYDWLRQSODQ7KHUHIRUHWKHSURMHFWZRXOGQRWFRQIOLFWZLWKDQ\VXFKSODQV 5HIHUHQFHV
$PHULFDQ%LUG&RQVHUYDQF\
$%&
%LUGIULHQGO\'HVLJQDQG%LUGIULHQGO\*ODVV$YDLODEOH RQOLQH
KWWSV
DEFELUGVRUJZSFRQWHQWXSORDGV
%LUGIULHQGO\'HVLJQ%LUG
IULHQGO\*ODVVDQGRWKHUVWUDWHJLHVSGI
&DOLIRUQLD1DWXUDO'LYHUVLW\'DWDEDVH
&1''%
5DUHILQG&DOLIRUQLD'HSDUWPHQWRI
)LVKDQG:LOGOLIH$FFHVVHG)HEUXDU\DW
KWWSV
ZLOGOLIHFDJRY'DWD&1''%0DSVDQG'DWD
&DOLIRUQLD1DWLYH3ODQW6RFLHW\
&136
,QYHQWRU\RI5DUHDQG(QGDQJHUHG3ODQWV

DQG
RQOLQHHGLWLRQV
$FFHVVHG)HEUXDU\DWKWWS
ZZZFQSVRUJLQYHQWRU\
*RRJOH(DUWK3UR$HULDOYLHZRISURMHFWVLWHDQGGLVWDQFHVWRQHDUE\ORFDWLRQV >1:,@1DWLRQDO:HWODQGV,QYHQWRU\:HWODQGV0DSSHU86)LVKDQG:LOGOLIH6HUYLFH $FFHVVHG)HEUXDU\DWKWWS
ZZZIZVJRYZHWODQGV:HWODQGV0DSSHUKWPO
&LW\RI6DQ&DUORV

$SULO
6DQ&DUORV*HQHUDO3ODQ*HQHUDO3ODQ$GRSWHG2FWREHU

&LW\RI6DQ&DUORV
6DQ&DUORV0XQLFLSDO&RGH7LWOH
=RQLQJ5HYLVHG

&LW\RI6DQ&DUORV,QWHULP3URWHFWHG7UHH2UGLQDQFH2UGLQDQFHVDQG $GRSWHG-XQH

8.a
November 14, 2022

Packet Pg. 286

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&LW\RI6DQ)UDQFLVFR6WDQGDUGVIRU%LUG6DIH%XLOGLQJV6DQ)UDQFLVFR3ODQQLQJ 'HSDUWPHQW$GRSWHG-XO\
6DQ)UDQFLVFR3ODQQLQJ'HSDUWPHQW
6)3ODQQLQJ'HSDUWPHQW
6WDQGDUGVIRU%LUG6DIH
%XLOGLQJV
50:3ODQQLQJ3DFNDJHIRU
,QGXVWULDO5RDG'HFHPEHU
7LOOHU\$QQH&-DQHW06RZHUV6DUDK3HDUFH&UHHNDQG:DWHUVKHG0DSRI6DQ 0DWHRDQG9LFLQLW\2DNODQG0XVHXPRI&DOLIRUQLD2DNODQG&$ ZZZPXVHXPFDRUJFUHHNV
8QLWHG6WDWHV)LVKDQG:LOGOLIH6HUYLFH
86):6
(QYLURQPHQWDO&RQVHUYDWLRQ2QOLQH
6\VWHP
(&26

86):67KUHDWHQHG (QGDQJHUHG6SHFLHV$FWLYH&ULWLFDO+DELWDW 5HSRUW2QOLQH0DSSHU$FFHVVHG)HEUXDU\DW
KWWSV
HFRVIZVJRYHFSUHSRUWWDEOHFULWLFDOKDELWDWKWPO

8.a
November 14, 2022

Packet Pg. 287

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&8/785$/5(6285&(6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
&DXVHDVXEVWDQWLDODGYHUVHFKDQJHLQWKH
VLJQLILFDQFHRIDKLVWRULFDOUHVRXUFHSXUVXDQWWR
"

E
&DXVHDVXEVWDQWLDODGYHUVHFKDQJHLQWKH
VLJQLILFDQFHRIDQDUFKDHRORJLFDOUHVRXUFH
SXUVXDQWWR"

F
'LVWXUEDQ\KXPDQUHPDLQVLQFOXGLQJWKRVH
LQWHUUHGRXWVLGHRIGHGLFDWHGFHPHWHULHV"
(QYLURQPHQWDO6HWWLQJ
3UHKLVWRULF
7KHILUVWNQRZQKXPDQLQKDELWDQWVRIWKH6DQ&DUORVDUHDZHUHWKH2KORQHZKRZHUHQDPHG &RVWDQRDQVE\WKH6SDQLVK&RVWDQRDQQRZUHIHUVWRWKHQDPHRIWKHLUOLQJXLVWLFJURXS7KH 2KORQHRFFXSLHGDODUJHWHUULWRU\LQWKH6RXWK%D\LQFOXGLQJWKHSURMHFWVLWH7KLVHWKQRJUDSKLF JURXSVHWWOHGLQODUJHSHUPDQHQWJURXSLQJVRIKRXVHKROGVIRUPLQJODUJHYLOODJHVDQGWULEDO WHUULWRULHVNQRZQDVµWULEHOHWV¶±VPDOOLQGHSHQGHQWJURXSVRIXVXDOO\UHODWHGIDPLOLHVRFFXS\LQJ DVSHFLILFWHUULWRU\DQGVSHDNLQJWKHVDPHODQJXDJHRUGLDOHFW /HY\

0RUHVSHFLILFDOO\DFRQFHQWUDWLRQRI2KORQHLVEHOLHYHGWRKDYHOLYHGLQWKH&DUPHOLWDDUHDRI 6DQ&DUORVZKLFKOLHVLQSDUWRIWKHFLW\¶V3ODQQLQJ$UHD1DWLYH$PHULFDQDUFKDHRORJLFDOVLWHV WHQGWREHORFDWHGQHDUZDWHUZD\VDVZHOODVDORQJULGJHWRSVPLGVORSHKLOOWHUUDFHVDOOXYLDO IODWVWKHEDVHRIKLOOVDQGZKHUHWZRYHJHWDWLRQFRPPXQLWLHVPHHW6DQ)UDQFLVFR3HQLQVXOD¶V SUR[LPLW\WRERWKED\DQGPDULQHUHVRXUFHVOHGWRWKHUDSLGULVHLQ1DWLYH$PHULFDQWULEHDQG WULEHOHWSRSXODWLRQV'XHWRXUEDQL]DWLRQLQ6DQ&DUORVDQG6DQ0DWHR&RXQW\DUFKDHRORJLFDO GDWDLVODUJHO\PLVVLQJ+RZHYHUSUHKLVWRULFDUFKHRORJLFDOGHSRVLWVKDYHEHHQUHFRUGHGQHDU WKHEDQNVRIWKH3XOJDV&UHHNFRQVLVWLQJRIPDPPDOERQHDQGFKHUWIODNHV$PLGGHQVLWHRQ WKHEDQNVRIWKH3XOJDV&UHHNZDVUHFRUGHGLQ

DQGFRQVLVWHGRIVWRQHIODNHVDQGD
SRVVLEOHKDPPHUVWRQH$PDMRULW\RIWKLVVLWHZDVGHVWUR\HGGXULQJWKHFRQVWUXFWLRQRI6DQ &DUORV$YHQXHDQGQHDUE\UHVLGHQWLDOGHYHORSPHQW
+LVWRULF
7KHILUVW(XURSHDQVWRUHDFKWKH6DQ)UDQFLVFRDUHDZHUH6SDQLVKH[SORUHUVLQ DVSDUWRI
WKH3RUWROiH[SHGLWLRQ,QWKHGH$Q]DH[SHGLWLRQKDGVHWRXWWRFRQYHUWWKH1DWLYH $PHULFDQWULEHVWR&KULVWLDQLW\UHVXOWLQJLQWKHHVWDEOLVKPHQWRI DPRQJRWKHUV
0LVVLRQ6DQ
)UDQFLVFRGH$VLV
0LVVLRQ'RORUHV
IRXQGHGLQDQG0LVVLRQ6DQWD&ODUDGH$VLV
IRXQGHGLQ7KH(O&DPLQR5HDO±ZKLFKUXQVWKURXJK6DQ&DUORVSDUDOOHOWR,QGXVWULDO 5RDG±EHFDPHDKHDYLO\WUDYHOHGURXWHEHWZHHQ0LVVLRQ'RORUHVDQG0LVVLRQ6DQWD&ODUDLQ DGGLWLRQWRRWKHUPLVVLRQVDORQJWKHURXWH7KLVURXWHOHGWRWKHHVWDEOLVKPHQWRILQQVDQG URDGKRXVHVWRVHUYHWUDYHOHUVDORQJWKHZD\,QWKLVKLVWRULFSHULRGWKH2KORQHSHRSOHZHUH VXEMXJDWHGDQGDEVRUEHGLQWRWKHPLVVLRQV\VWHPUHVXOWLQJLQWKHORVVRIWKHLUIUHHGRPRI PRYHPHQWWKHLUFXOWXUHDQGFXVWRPV
/LEUDU\RI&RQJUHVV

'XULQJWKH0H[LFDQUXOHRI&DOLIRUQLD
WKURXJK
ODUJHWUDFWVRIODQGZHUHLVVXHGWR
SULYDWHLQGLYLGXDOVXVXDOO\FDWWOHUDQFKHUVDQGKLGHDQGWDOORZWUDGHUV:KDWLVQRZ6DQ&DUORV

8.a
November 14, 2022

Packet Pg. 288

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
ZDVSDUWRIDODQGJUDQWLVVXHGLQWKH³5DQFKRGHODV3XOJDV´ 5DQFKRIWKH)OHDV
ZKLFK
ZDVWKHODUJHVWODQGJUDQWLQWKHSHQLQVXODDWDFUHV:KDWZDVWRHYHQWXDOO\EHFRPH 6DQ&DUORVZDVERXJKWRXWRIWKHODQGJUDQWE\DQ$PHULFDQ7LPRWK\3KHOSVDVDGDLU\IDUPLQ WKHV,QKHPDGHSODQVWRGHYHORSDWRZQ3KHOSVYLOOHEXWZDVXQVXFFHVVIXO+H WKHQVROGWKHODQGLQLQRUGHUWRPDNHZD\IRUIXUWKHUGHYHORSPHQW7KUHHDGGLWLRQDO DWWHPSWVZHUHPDGHWRGHYHORSDWRZQ,QWKH6DQ&DUORVODQGFRPSDQ\WULHGWRVXEGLYLGH DQGVHOOWKHODQGRQFHRZQHGE\3KHOSV/DWHULQ
WKH6DQ&DUORV3DUN6\QGLFDWH
DWWHPSWHGWRFDOOWKHDUHDµ2DN3DUN¶DQGHQJDJHGRQDQHODERUDWHVDOHVFDPSDLJQ)LQDOO\LQ
)UHGHULFN'UDNHRIWKH0HUFDQWLOH7UXVWLQVWDOOHGJDVDQGHOHFWULFLW\WRWKHDUHDDVZHOODV LPSURYLQJWKHH[LVWLQJZDWHULQIUDVWUXFWXUH%\
WKHILUVWVFKRROZDVEXLOWDQGSRSXODWLRQ
VORZO\JUHZ,Q
WKHUHVLGHQWVYRWHGIRULQFRUSRUDWLRQDQG6DQ&DUORVZDVRIILFLDOO\ERUQ 'UDNHFRQWLQXHGWRSURPRWHWKHWRZQDQGFRLQHGWKHPRWWR7KH&LW\RI*RRG/LYLQJ %/0

6DQ&DUORV
/HY\-

0RGHUQ
$WWKHWLPHRILQFRUSRUDWLRQLQ
6DQ&DUORVKDGRQO\LQKDELWDQWV,WZDVQ¶WXQWLOWKH 6HFRQG:RUOG:DUDQGSRVWZDUHFRQRPLFERRPWKDWWKH&LW\H[SHULHQFHGDVLJQLILFDQW SRSXODWLRQLQFUHDVH,Q
LWJUHZWRUHVLGHQWVDQGLQ
LWKDGDSRSXODWLRQRI
,WZDVLQWKDWSRVWZDUERRPZKHQWKH&LW\KDGDQLQGXVWULDOERRP,WZDVQ¶WXQWLO
WKDW,QGXVWULDO5RDGZDVFRQFHLYHG
ZKHQWKH,QGXVWULDO&RPPLWWHHRIWKH6DQ&DUORV&KDPEHU RI&RPPHUFHDGYRFDWHGIRULWVFRQVWUXFWLRQWRGHDOZLWKWUDIILFFLUFXODWLRQSUREOHPVRQ%ULWWDQ $YHQXHZKLFKFRQQHFWHG(O&DPLQR5HDODQG2OG&RXQW\5RDGRYHU6RXWKHUQ3DFLILFUDLOURDG WUDFNV$W
30HYHU\ZRUNLQJGD\WKHVWUHHWZDVMDPPHGZLWKFDUVDVZRUNHUV³SRXUHGRXW´ RIWKHLQGXVWULDOSODQWVHDVWRIWKHUDLOURDGDVUHFRUGHGE\WKH6DQ0DWHR7LPHV7RGD\WKHFLW\ LVDSUHGRPLQDQWO\UHVLGHQWLDOVHWWOHPHQWRISHRSOHZLWKLWVEXVLQHVVDQGLQGXVWULDODUHD LQWKHYLFLQLW\RIWKHSURMHFWVLWH
6DQ&DUORV
86&HQVXV
6KRHFUDIW

+LVWRULF(QYLURQPHQW
7KH1DWLRQDO5HJLVWHURI+LVWRULF3ODFHV
15+3
DQGWKH&DOLIRUQLD5HJLVWHURI+LVWRULF
5HVRXUFHV
&5+5
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
WKH1DWKDQLDO%ULWWDQ3DUW\+RXVHDQGWKH6RXWKHUQ3DFLILF'HSRW+RZHYHUQHLWKHURI WKHSURSHUWLHVDUHORFDWHGQHDUWKHSURMHFWVLWH1RUHVRXUFHVOLVWHGRQWKH&LW\RI6DQ&DUORV¶V +LVWRULFDO5HVRXUFHV,QYHQWRU\DUHZLWKLQWKHSURMHFWVLWH 5HJXODWRU\6HWWLQJ
&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW
3XUVXDQWWR&(4$DKLVWRULFDOUHVRXUFHLVDUHVRXUFHOLVWHGLQRUHOLJLEOHIRUOLVWLQJLQWKH &DOLIRUQLD5HJLVWHURI+LVWRULFDO5HVRXUFHV
&5+5
,QDGGLWLRQUHVRXUFHVLQFOXGHGLQDORFDO
UHJLVWHURIKLVWRULFUHVRXUFHVRULGHQWLILHGDVVLJQLILFDQWLQDORFDOVXUYH\FRQGXFWHGLQ DFFRUGDQFHZLWKVWDWHJXLGHOLQHVDUHDOVRFRQVLGHUHGKLVWRULFUHVRXUFHVXQGHU&(4$XQOHVVD SUHSRQGHUDQFHRIWKHIDFWVGHPRQVWUDWHVRWKHUZLVH3HU&(4$WKHIDFWWKDWDUHVRXUFHLVQRW OLVWHGLQRUGHWHUPLQHGHOLJLEOHIRUOLVWLQJLQWKH&5+5RULVQRWLQFOXGHGLQDORFDOUHJLVWHURU VXUYH\VKDOOQRWSUHFOXGHD/HDG$JHQF\DVGHILQHGE\&(4$IURPGHWHUPLQLQJWKDWWKH UHVRXUFHPD\EHDKLVWRULFUHVRXUFHDVGHILQHGLQ&DOLIRUQLD3XEOLF5HVRXUFHV&RGH 35&

8.a
November 14, 2022

Packet Pg. 289

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
6HFWLRQ&(4$DSSOLHVWRDUFKDHRORJLFDOUHVRXUFHVZKHQ
WKHDUFKDHRORJLFDO
UHVRXUFHVDWLVILHVWKHGHILQLWLRQRIDKLVWRULFDOUHVRXUFHRU
WKHDUFKDHRORJLFDOUHVRXUFH
VDWLVILHVWKHGHILQLWLRQRID³XQLTXHDUFKDHRORJLFDOUHVRXUFH´$XQLTXHDUFKDHRORJLFDOUHVRXUFH LVDQDUFKDHRORJLFDODUWLIDFWREMHFWRUVLWHWKDWKDVDKLJKSUREDELOLW\RIPHHWLQJDQ\RIWKH IROORZLQJFULWHULD

7KHDUFKDHRORJLFDOUHVRXUFHFRQWDLQVLQIRUPDWLRQQHHGHGWRDQVZHULPSRUWDQWVFLHQWLILF UHVHDUFKTXHVWLRQVDQGWKHUHLVDGHPRQVWUDEOHSXEOLFLQWHUHVWLQWKDWLQIRUPDWLRQ 7KHDUFKDHRORJLFDOUHVRXUFHKDVDVSHFLDODQGSDUWLFXODUTXDOLW\VXFKDVEHLQJWKHROGHVW RILWVW\SHRUWKHEHVWDYDLODEOHH[DPSOHRILWVW\SH 7KHDUFKDHRORJLFDOUHVRXUFHLVGLUHFWO\DVVRFLDWHGZLWKDVFLHQWLILFDOO\UHFRJQL]HG LPSRUWDQWSUHKLVWRULFRUKLVWRULFHYHQWRUSHUVRQ
+HDOWKDQG6DIHW\&RGH6HFWLRQVDQG
+HDOWKDQG6DIHW\&RGH6HFWLRQGHFODUHVWKDWLQWKHHYHQWRIWKHGLVFRYHU\RIKXPDQ UHPDLQVRXWVLGHDGHGLFDWHGFHPHWHU\DOOJURXQGGLVWXUEDQFHVPXVWFHDVHDQGWKHFRXQW\ FRURQHUPXVWEHQRWLILHG6HFWLRQHVWDEOLVKHVDIHORQ\SHQDOW\IRUPXWLODWLQJGLVLQWHUULQJ RURWKHUZLVHGLVWXUELQJKXPDQUHPDLQVH[FHSWE\UHODWLYHV 3HQDO&RGH6HFWLRQ
3HQDO&RGH6HFWLRQSURYLGHVPLVGHPHDQRUSHQDOWLHVIRULQMXULQJRUGHVWUR\LQJREMHFWVRI KLVWRULFRUDUFKDHRORJLFDOLQWHUHVWORFDWHGRQSXEOLFRUSULYDWHODQGVEXWVSHFLILFDOO\H[FOXGHVWKH ODQGRZQHU
*RYHUQPHQW&RGH6HFWLRQ
U

*RYHUQPHQW&RGHH[SOLFLWO\DXWKRUL]HVSXEOLFDJHQFLHVWRZLWKKROGLQIRUPDWLRQIURPWKHSXEOLF UHODWLQJWR1DWLYH$PHULFDQJUDYHVFHPHWHULHVDQGVDFUHGSODFHVPDLQWDLQHGE\WKH1DWLYH $PHULFDQ+HULWDJH&RPPLVVLRQ
*RYHUQPHQW&RGH6HFWLRQHWVHT
5HFRUGVKRXVHGLQWKH,QIRUPDWLRQ&HQWHUVRIWKH&DOLIRUQLD+LVWRULFDO5HVRXUFHV,QIRUPDWLRQ 6\VWHP
&+5,6
DUHH[HPSWIURPWKH&DOLIRUQLD3XEOLF5HFRUGV$FW
1DWLYH$PHULFDQ*UDYHV3URWHFWLRQDQG5HSDWULDWLRQ$FWRI

7KH1DWLYH$PHULFDQ*UDYHV3URWHFWLRQDQG5HSDWULDWLRQ$FW 1$*35$
RI

VHWV
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
±

6HFWLRQ

RIWKH3XEOLF5HVRXUFHV&RGH
35&
HVWDEOLVKHGWKH1DWLYH$PHULFDQ+HULWDJH
&RPPLVVLRQ
1$+&
ZKRVHGXWLHVLQFOXGHWKHLQYHQWRU\RISODFHVRIUHOLJLRXVRUVRFLDO VLJQLILFDQFHWR1DWLYH$PHULFDQVDQGWKHLGHQWLILFDWLRQRINQRZQJUDYHVDQGFHPHWHULHVRI 1DWLYH$PHULFDQVRQSULYDWHODQGV8QGHU6HFWLRQ

RIWKH35&DVWDWHSROLF\RI
QRQLQWHUIHUHQFHZLWKWKHIUHHH[SUHVVLRQRUH[HUFLVHRI1DWLYH$PHULFDQUHOLJLRQZDVDUWLFXODWHG DORQJZLWKDSURKLELWLRQRIVHYHUHRULUUHSDUDEOHGDPDJHWR1DWLYH$PHULFDQVDQFWLILHG FHPHWHULHVSODFHVRIZRUVKLSUHOLJLRXVRUFHUHPRQLDOVLWHVRUVDFUHGVKULQHVORFDWHGRQSXEOLF

8.a
November 14, 2022

Packet Pg. 290

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
SURSHUW\6HFWLRQ

RIWKH35&VSHFLILHVDSURWRFROWREHIROORZHGZKHQWKH1$+& UHFHLYHVQRWLILFDWLRQRIDGLVFRYHU\RI1DWLYH$PHULFDQKXPDQUHPDLQVIURPDFRXQW\FRURQHU 6HFWLRQ
GHILQHVDVDPLVGHPHDQRUWKHXQDXWKRUL]HGGLVWXUEDQFHRUUHPRYDORI DUFKDHRORJLFDOKLVWRULFRUSDOHRQWRORJLFDOUHVRXUFHVORFDWHGRQSXEOLFODQGV &DOLIRUQLD1DWLYH$PHULFDQ*UDYHV3URWHFWLRQDQG5HSDWULDWLRQ$FWRI &RGLILHGLQWKH&DOLIRUQLD+HDOWKDQG6DIHW\&RGH6HFWLRQV±WKH&DOLIRUQLD1DWLYH $PHULFDQ*UDYHV3URWHFWLRQ$FW
1$*35$
LVFRQVLVWHQWZLWKWKHIHGHUDO1$*35$,QWHQGHGWR
³SURYLGHDVHDPOHVVDQGFRQVLVWHQWVWDWHSROLF\WRHQVXUHWKDWDOO&DOLIRUQLD,QGLDQKXPDQ UHPDLQVDQGFXOWXUDOLWHPVEHWUHDWHGZLWKGLJQLW\DQGUHVSHFW´WKH&DOLIRUQLD1$*35$DOVR HQFRXUDJHVDQGSURYLGHVDPHFKDQLVPIRUWKHUHWXUQRIUHPDLQVDQGFXOWXUDOLWHPVWROLQHDO GHVFHQGDQWV6HFWLRQHVWDEOLVKHGD5HSDWULDWLRQ2YHUVLJKW&RPPLVVLRQWRRYHUVHHWKLV SURFHVV7KHDFWDOVRSURYLGHVDSURFHVVIRUQRQ±IHGHUDOO\UHFRJQL]HGWULEHVWRILOHFODLPVZLWK DJHQFLHVDQGPXVHXPVIRUUHSDWULDWLRQRIKXPDQUHPDLQVDQGFXOWXUDOLWHPV $VVHPEO\%LOO
$VVHPEO\%LOO
$%
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
6DQ&DUORV*HQHUDO3ODQ
7KH6DQ&DUORV*HQHUDO3ODQZDVDGRSWHGLQ
7KHIROORZLQJUHOHYDQWDUFKDHRORJLFDO
UHVRXUFHVSROLFLHVDUHIURPWKH*HQHUDO3ODQ¶V/DQG8VH(OHPHQW x 3ROLF\/8
(YDOXDWHKLVWRULFDODQGFXOWXUDOUHVRXUFHVHDUO\LQWKHGHYHORSPHQW UHYLHZSURFHVVWKURXJKFRQVXOWDWLRQZLWKLQWHUHVWHGSDUWLHV x 3ROLF\/8
7UHDWZLWKUHVSHFWDQGGLJQLW\DQ\KXPDQUHPDLQVGLVFRYHUHGGXULQJ LPSOHPHQWDWLRQRISXEOLFDQGSULYDWHSURMHFWVZLWKLQWKHFLW\DQGIXOO\FRPSO\ZLWKWKH &DOLIRUQLD1DWLYH$PHULFDQ*UDYHV3URWHFWLRQDQG5HSDWULDWLRQ$FWDQGRWKHU DSSURSULDWHODZV
'LVFXVVLRQ
:RXOGWKHSURMHFW

D
&DXVHDVXEVWDQWLDODGYHUVHFKDQJHLQWKHVLJQLILFDQFHRID KLVWRULFDOUHVRXUFH SXUVXDQWWR"
1R,PSDFW7KHW\SHVRIFXOWXUDOUHVRXUFHVWKDWPHHWWKHGHILQLWLRQRIKLVWRULFDOUHVRXUFHVXQGHU 3XEOLF5HVRXUFHV&RGH
35&
6HFWLRQJHQHUDOO\FRQVLVWRIGLVWULFWVVLWHVEXLOGLQJV VWUXFWXUHVDQGREMHFWVWKDWDUHVLJQLILFDQWIRUWKHLUWUDGLWLRQDOFXOWXUDODQGRUKLVWRULFDO DVVRFLDWLRQV$UFKDHRORJLFDOUHVRXUFHV
LHVLWHVDQGDOOSUH
KLVWRULFUHVRXUFHV
DUHGLVFXVVHG
XQGHUE
EHORZ%XLOWHQYLURQPHQWKLVWRULFUHVRXUFHVDUHLQFOXGHGLQWKLVVHFWLRQ 7KHSURMHFWVLWHGRHVQRWFRQWDLQDQ\KLVWRULFUHVRXUFHVOLVWHGRQHLWKHUWKH&5+5RUWKH15+3 0,*FRQGXFWHGD&DOLIRUQLD+LVWRULFDO5HVRXUFHV,QIRUPDWLRQ6\VWHP &+5,6
VHDUFKWKURXJK
WKH1RUWKZHVW,QIRUPDWLRQ&HQWHU
1:,&
,WZDVFRPSOHWHGRQ
:LWKLQDPLOH
UDGLXVVXUURXQGLQJWKHSURMHFWVLWHWKHUHDUHILYHNQRZKLVWRULFSURSHUWLHVOLVWHGRQWKH&+5,6 GDWDEDVH7KHVHSURSHUWLHVDUHVXPPDUL]HGLQ7DEOHEHORZ

8.a
November 14, 2022

Packet Pg. 291

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7DEOH
+LVWRULF5HVRXUFHVLQWKH3URMHFW9LFLQLW\
&+5,61XPEHU 1DPHRI5HVRXUFH $SSUR[LPDWH'LVWDQFHIURP3URMHFW6LWH 3 6RXWKHUQ3DFLILF'HSRW PLOHV
3

6DQ&DUORV3DFLILF%HOO PLOHV
3
1HOO%XLOGLQJ
PLOHV
3 (O&DPLQR PLOHV
3 (O&DPLQR PLOHV
5HSRUWVJDLQHGIURPWKH&+5,6VHDUFKDUHSULPDULO\DUFKDHRORJLFDOLQQDWXUHDQGDUH VXPPDUL]HGLQE
EHORZ
7KHH[LVWLQJVHOIVWRUDJHVWUXFWXUHVRQWKHVLWHZHUHEXLOWEHWZHHQ DQG
EDVHGRQ
KLVWRULFDOPDSVDQGDHULDOSKRWRJUDSK\
+LVWRULF$HULDOV
7KHUHIRUHWKHVWUXFWXUHVDUHD
PD[LPXPRI\HDUVROG
*HQHUDOO\XQGHU&(4$WKH15+3\HDUWKUHVKROGLVXVHGDVDJXLGDQFHIRUGHWHUPLQLQJLID VWUXFWXUHKDVSRWHQWLDOWREHFRQVLGHUHGKLVWRULFDOO\VLJQLILFDQW7KH&DOLIRUQLD2IILFHRI+LVWRULF 3UHVHUYDWLRQ
2+3
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
7KHH[LVWLQJVHOIVWRUDJHVWUXFWXUHVDUHWKHUHIRUHQRWFRQVLGHUHGVLJQLILFDQWUHVRXUFHVXQGHU &(4$DQGGHPROLWLRQRIWKHH[LVWLQJVWUXFWXUHVZRXOGQRWLPSDFWDKLVWRULFUHVRXUFHSXUVXDQWWR
7KHSURMHFWVLWHLVORFDWHGLQDEXLOWXSPL[HGXVHDUHDWKDWGRHVQRWFRQWDLQKLVWRULFDO UHVRXUFHV1REXLOGLQJVRUVWUXFWXUHVLQWKHYLFLQLW\HOLJLEOHIRUWKH&5+5RU15+3ZRXOGKDYH WKHLUHOLJLELOLW\DIIHFWHGE\WKHSURSRVHGSURMHFW$VDUHVXOWWKHUHZRXOGEHQRLPSDFWWRKLVWRULF UHVRXUFHV
E
&DXVHDVXEVWDQWLDODGYHUVHFKDQJHLQWKHVLJQLILFDQFHRIDQ DUFKDHRORJLFDO UHVRXUFHSXUVXDQWWR"
/HVVWKDQ6LJQLILFDQW,PSDFWZLWK0LWLJDWLRQ,QFRUSRUDWHG0,*FRQGXFWHGD6DFUHG/DQGV )LOH
6/)
VHDUFKWKURXJKWKH1DWLYH$PHULFDQ+HULWDJH&RPPLVVLRQ 1$+&
7KHVHDUFKZDV
LQLWLDWHGRQ1RYHPEHUDQGZDVUHWXUQHGZLWKQHJDWLYHUHVXOWVRQ)HEUXDU\ 7KH1$+&ZHUHFRQWDFWHGRQ)HEUXDU\DQGWKH\VWDWHGWKHVHDUFKZDVGHOD\HGGXHWR DUHWLUHPHQW7ULEDOUHSUHVHQWDWLYHVZHUHFRQWDFWHGE\HPDLORQ)HEUXDU\XVLQJWKH 1$+&¶VFRQWDFWOLVWIURPDUHFHQWQHDUE\SURMHFW$IWHUUHFHLYLQJWKHQHJDWLYH6/)VHDUFKRQ )HEUXDU\WZRDGGLWLRQDOWULEDOUHSUHVHQWDWLYHVZHUHFRQWDFWHGWKDWZHUHQRWLQFOXGHG RQWKHFRQWDFWOLVWIRUWKHQHDUE\SURMHFW0,*FRQVLGHUVWKDWGXHGLOLJHQFHKDVEHHQFRPSOHWHG E\FRQWDFWLQJDOOWKHWULEDOUHSUHVHQWDWLYHVLGHQWLILHGE\WKH1$+&IRUWKHSURSRVHGSURMHFW 7KHHPDLOVWRWULEDOUHSUHVHQWDWLYHVUHTXHVWHGSHUWLQHQWLQIRUPDWLRQUHJDUGLQJFXOWXUDOUHVRXUFHV LQWKHSURMHFWYLFLQLW\DQGLQFOXGHGDGHVFULSWLRQRIWKHSURMHFWDQGPDSVVKRZLQJWKHSURMHFW ORFDWLRQDQGSURMHFWERXQGDU\7KHWULEHVFRQWDFWHGRQ)HEUXDU\ZHUHWKH$PDK 0XWVXQ7ULEDO%DQGRI0LVVLRQ6DQ-XDQ%DXWLVWDWKH&RVWDQRDQ5XPVHQ&DUPHO7ULEH

8.a
November 14, 2022

Packet Pg. 292

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
WKH,QGLDQ&DQ\RQ0XWVXQ%DQGRI&RVWDQRDQWKH0XZHNPD2KORQH,QGLDQ7ULEHRIWKH6) %D\$UHDDQG7KH2KORQH,QGLDQ7ULEH2Q)HEUXDU\0,*DOVRFRQWDFWHGDVHFRQG UHSUHVHQWDWLYHLGHQWLILHGIRUWKH,QGLDQ&DQ\RQ0XWVXQ%DQGRI&RVWDQRDQDVZHOODV WKH:XNVDFKH,QGLDQ7ULEH(VKRP9DOOH\%DQG
1RUHSO\ZDVUHFHLYHGIURPDQ\RIWKHFRQWDFWHGWULEHV0,*XQGHUVWDQGVWKDWDVWKH6/) VHDUFKZDVQHJDWLYHDQGWKDWQRWULEHUHVSRQGHGWRWKHUHTXHVWWKHUHDUHQRNQRZQWULEDO UHVRXUFHVLQWKHSURMHFWDUHDWKDWKDYHWKHSRWHQWLDOWREHLPSDFWHGE\WKHSURMHFW 0,*FRQGXFWHGD&+5,6VHDUFKWKURXJKWKH1:,&,WZDVFRPSOHWHGRQ2FWREHU 1R
KLVWRULFRUSUHKLVWRULFDUFKDHRORJLFDOUHVRXUFHVZHUHGLVFRYHUHGHLWKHUZLWKLQWKHSURMHFWVLWHRU ZLWKLQDPLOHUDGLXVVXUURXQGLQJWKHSURMHFWVLWH$OVROLVWHGRQWKH&+5,6VHDUFKZHUH UHSRUWVRYHUODSSLQJWKHSURMHFWVLWHDQGUHSRUWVZLWKLQWKHPLOHVHDUFKUDGLXV7KHUHSRUWV ZLWKLQWKHSURMHFWVLWHDUHVXPPDUL]HGLQ7DEOHEHORZ 7DEOH
&XOWXUDO5HSRUWVZLWKLQWKH3URMHFW$UHD
5HSRUW
1XPEHU <HDU 7LWOH 5HSRUW7\SH
6
$)LHOG6XUYH\RIWKH+ROO\6WUHHW,QWHUFKDQJH
DQG3URSRVHG3HQLQVXOD3DUNZD\([WHQVLRQ
$UFKDHRORJLFDOILHOG
VWXG\
6
)LQDO5HSRUW$UFKDHRORJLFDO6XUYH\DQG5HFRUG 6HDUFKIRUWKH6L[)OXRU*OREDO)LEHU2SWLF
6HJPHQWV
$UFKDHRORJLFDOILHOG
VWXG\

6 $&XOWXUDO5HVRXUFHV6WXG\IRUWKH6DQ0DWHR &RXQW\60$57&RUULGRUV3URMHFW
$UFKDHRORJLFDO
UHVHDUFK
6D
6PDUW&RUULGRUV*HRDUFKDHRORJLFDO6HQVLWLYLW\
5HVHDUFK
$UFKDHRORJLFDOILHOG
VWXG\
6
+LVWRULF3URSHUW\6XUYH\5HSRUWIRUWKH86 0DQDJHG/DQHV3URMHFW
$UFKDHRORJLFDO
$UFKLWHFWXUDOKLVWRULFDO
6
D +LVWRULF5HVRXUFHV(YDOXDWLRQ5HSRUWIRUWKH86 0DQDJHG/DQHV3URMHFW
$UFKLWHFWXUDOKLVWRULFDO
ILHOGVWXG\
6
E $UFKDHRORJLFDO6XUYH\5HSRUWDQG([WHQGHG
3KDVH,6WXG\86
+LJK2FFXSDQF\
9HKLFOH([SUHVV
0DQDJHG
/DQHV3URMHFW
$UFKDHRORJLFDO
([FDYDWLRQ)LHOG
VWXG\
6
F 'HWHUPLQDWLRQVRI(OLJLELOLW\IRUWKH3URSRVHG &UHDWLRQRI$SSUR[LPDWHO\0LOHVRI0DQDJHG
/DQHVDORQJ8QLWHG6WDWHV+LJKZD\
2+3
&RUUHVSRQG
HQFH
$QDGGLWLRQDOUHSRUWVZHUHLGHQWLILHGE\WKH1:,&DVEHLQJZLWKLQPLOHVRIWKHSURMHFW VLWH5HSRUWV6DQG6ZHUHUHWDLQHGIRUVSHFLILFLQIRUPDWLRQRQWKHSURMHFWVLWH 7KHRWKHUUHSRUWVZHUHOLQHDURUFRUULGRUSURMHFWVWKDWFRQVLVWHGRIDZLGHVSUHDGVXUYH\IRU OLQHDURUFRUULGRUSURMHFWVZKHUHWKHVHOIVWRUDJHSURMHFWVLWHZDVRQO\DVPDOOHOHPHQWRIWKH RYHUDOOUHSRUW
,WVKRXOGEHQRWHGKRZHYHUWKDWWKHVHUHSRUWVDOOIDLOHGWRLQGLFDWHWKHSUHVHQFHRI DUFKDHRORJLFDOUHVRXUFHVZLWKLQPLOHVRIWKHSURMHFWVLWH 6
1RSUHKLVWRULFFXOWXUDOPDWHULDOZDVQRWHGDQ\ZKHUHRQWKHILHOGVXUYH\RQDQGDURXQGWKH+ROO\ 6WUHHWLQWHUFKDQJHZKLFKLQFOXGHGWKLVSURMHFWVLWH7KHOHWWHUVWDWHGWKDWWKHFRQVWUXFWLRQRIDQ LQWHUFKDQJHUDPSZRXOGKDYHQRLPSDFWWRFXOWXUDOUHVRXUFHV

8.a
November 14, 2022

Packet Pg. 293

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
6
$OWKRXJKUHSRUW6ZDVDZLGHUUDQJLQJUHSRUWHDFKGLVFUHWHDUHDRIWKLVUHSRUWZDV DQDO\]HGIRUDUFKDHRORJLFDOVHQVLWLYLW\DQGRQHRIWKHDUHDVRI6IXOO\RYHUODSSHGWKH SURMHFWDUHDDQGGLGQRWJREH\RQGWKHLPPHGLDWHYLFLQLW\7KHUHSRUWLQGLFDWHGWKDWWKHFXUUHQW SURMHFWDUHDZDVFRQVLGHUHGKLJKVHQVLWLYLW\IRUSUHKLVWRULFDUFKDHRORJLFDOUHVRXUFHV7KH SURMHFWVLWHLVVLWXDWHGRYHU6DQ)UDQFLVFR%D\0XG
TKEP
DVPDSSHGE\WKH8QLWHG6WDWHV
*HRORJLFDO6XUYH\
86*6
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
JUHDWHUWKDQIHHW
LIDUFKDHRORJLFDOUHVRXUFHVDUHSUHVHQWDWWKHSURMHFW VLWHLWLVYHU\OLNHO\WKDWSURMHFWDFWLYLWLHV
HJVLWHSUHSDUDWLRQJUDGLQJH[FDYDWLRQDQG
WUHQFKLQJIRUXWLOLWLHV
ZRXOGGLVWXUERUGHVWUR\VXFKUHVRXUFHV
,IDQ\DUFKDHRORJLFDOGHSRVLWVPHHWLQJWKHGHILQLWLRQRIKLVWRULFDOUHVRXUFHXQGHU3XEOLF 5HVRXUFHV&RGH6HFWLRQDUHGDPDJHGRUGHVWUR\HGE\JURXQGGLVWXUELQJFRQVWUXFWLRQ DFWLYLWLHVWKHDELOLW\RIWKHGHSRVLWVWRFRQYH\WKHLUVLJQLILFDQFHHLWKHUDVFRQWDLQLQJLQIRUPDWLRQ DERXWSUHKLVWRU\RUKLVWRU\RUDVSRVVHVVLQJWUDGLWLRQDORUFXOWXUDOVLJQLILFDQFHWR1DWLYH $PHULFDQRURWKHUGHVFHQGDQWFRPPXQLWLHVZRXOGEHPDWHULDOO\LPSDLUHGDQGZRXOGFRQVWLWXWH DVLJQLILFDQWLPSDFWWRFXOWXUDOUHVRXUFHV
5HFRJQLWLRQRIDUFKDHRORJLFDOGHSRVLWVEHIRUHWKH\DUHGHVWUR\HGRUGDPDJHGZRXOGUHGXFH LPSDFWVWRUHVRXUFHV,QRUGHUIRUFRQVWUXFWLRQFUHZVWRUHFRJQL]HSRWHQWLDODUFKDHRORJLFDO UHVRXUFHVWKH&LW\ZLOOLPSOHPHQW0LWLJDWLRQ0HDVXUH&8/WRUHTXLUHFXOWXUDOUHVRXUFHV WUDLQLQJWRFRQVWUXFWLRQSHUVRQQHOHQJDJHGLQJURXQGGLVWXUELQJDFWLYLW\ ,PSDFW&8/
3URMHFWFRQVWUXFWLRQSHUVRQQHOPD\QRWUHFRJQL]HEXULHGDUFKDHRORJLFDO UHVRXUFHVGXULQJSURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0LWLJDWLRQ0HDVXUH&8/
&RQGXFW$UFKDHRORJLFDO6HQVLWLYLW\7UDLQLQJ,Q
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
7KLVPHDVXUHZRXOGPLQLPL]HDQGRUDYRLGLPSDFWVWRXQDQWLFLSDWHG DUFKDHRORJLFDOUHVRXUFHVWROHVVWKDQVLJQLILFDQWOHYHOV

8.a
November 14, 2022

Packet Pg. 294

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHSULRUWRJURXQGGLVWXUEDQFHRQWKHVLWH 7LPLQJ
3ULRUWRSURMHFWJURXQGGLVWXUEDQFH
0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRIFXOWXUDOUHVRXUFHPLWLJDWLRQ 7KH&LW\VKDOOHQVXUHWKDWDUFKDHRORJLFDOWUDLQLQJKDVEHHQFRQGXFWHG IRUDOOSHUVRQQHOHQJDJHGLQJURXQGPRYLQJDFWLYLWLHVSULRUWRJURXQG GLVWXUEDQFHRQWKHVLWH
([LVWLQJUHJXODWLRQVZRXOGKHOSWRHQVXUHWKDWGHYHORSPHQWDQGUHGHYHORSPHQWDFWLYLWLHV DOORZHGXQGHUWKHSURSRVHGSURMHFWGRQRWFDXVHDVXEVWDQWLDODGYHUVHFKDQJH7KH6DQ&DUORV *HQHUDO3ODQLQFOXGHVSROLFLHVWKDWZRXOGDGGUHVVLPSDFWVWRKLVWRULFDODQGSUHFRQWDFW DUFKDHRORJLFDOGHSRVLWV
7RHQVXUHFRPSOLDQFHZLWKUHJXODWLRQVWKH&LW\ZLOOLPSOHPHQW0LWLJDWLRQ0HDVXUH&8/WR DGGUHVVSRWHQWLDOLPSDFWVWRXQGLVFRYHUHGDUFKHRORJLFDOUHVRXUFHVWKDWPD\EHXQHDUWKHG GXULQJHDUWKPRYLQJDFWLYLWLHVDVVRFLDWHGZLWKWKHSURSRVHGSURMHFW ,PSDFW&8/
3URMHFWFRQVWUXFWLRQPD\XQHDUWKRUGLVWXUESUHYLRXVO\XQLGHQWLILHG EXULHGDUFKDHRORJLFDOUHVRXUFHVGXULQJSURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0LWLJDWLRQ0HDVXUH&8/
3URWHFWLRQRI$UFKDHRORJLFDO5HVRXUFHV,QWKHHYHQW
DUFKDHRORJLFDOUHVRXUFHVDUHXQHDUWKHGGXULQJJURXQGGLVWXUELQJDFWLYLWLHVDOOJURXQG GLVWXUELQJDFWLYLWLHVZLWKLQIHHWRIWKHILQGVKDOOEHKDOWHGVRWKDWWKHILQGFDQEH HYDOXDWHG*URXQGPRYLQJDFWLYLWLHVVKDOOQRWEHDOORZHGWRFRQWLQXHXQWLODTXDOLILHG DUFKDHRORJLVWKDVH[DPLQHGWKHQHZO\GLVFRYHUHGDUWLIDFW V
DQGKDVHYDOXDWHGWKHDUHD
RIWKHILQG
$OODUFKDHRORJLFDOUHVRXUFHVXQHDUWKHGE\SURMHFWFRQVWUXFWLRQDFWLYLWLHVVKDOOEH HYDOXDWHGE\DTXDOLILHGSURIHVVLRQDODUFKDHRORJLVWZKRPHHWVWKH866HFUHWDU\RIWKH ,QWHULRU¶V3URIHVVLRQDO4XDOLILFDWLRQVDQG6WDQGDUGV $OO1DWLYH$PHULFDQDUWLIDFWV
WULEDOILQGV
VKDOOEHFRQVLGHUHGDVDVLJQLILFDQW7ULEDO
&XOWXUDO5HVRXUFHSXUVXDQWWR35&XQWLOWKHOHDGDJHQF\KDVHQRXJKHYLGHQFH WRPDNHDGHWHUPLQDWLRQRIVLJQLILFDQFH
7KH&LW\VKDOOFRRUGLQDWHZLWKWKHDUFKDHRORJLVWWRGHYHORSDQDSSURSULDWHWUHDWPHQWSODQ IRUWKHUHVRXUFHV7KHSODQPD\LQFOXGHLPSOHPHQWDWLRQRIDUFKDHRORJLFDOGDWDUHFRYHU\ H[FDYDWLRQVWRDGGUHVVWUHDWPHQWRIWKHUHVRXUFHDORQJZLWKVXEVHTXHQWODERUDWRU\ SURFHVVLQJDQGDQDO\VLV,IDSSURSULDWHWKHDUFKDHRORJLVWPD\LQWURGXFHDUFKDHRORJLFDO PRQLWRULQJRQDOORUSDUWRIWKHVLWH$QDUFKDHRORJLFDOUHSRUWZLOOEHZULWWHQGHWDLOLQJDOO DUFKDHRORJLFDOILQGVDQGVXEPLWWHGWRWKH&LW\DQGWKH1RUWKZHVW,QIRUPDWLRQ&HQWHU (IIHFWLYHQHVV
7KLVPHDVXUHZRXOGPLQLPL]HDQGRUDYRLGLPSDFWVRQXQGHWHFWHG DUFKDHRORJLFDOUHVRXUFHVWROHVVWKDQVLJQLILFDQWOHYHOV ,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHLQWKHHYHQWFXOWXUDOUHVRXUFHVDUH GLVFRYHUHG
7LPLQJ
'XULQJDOOHDUWKPRYLQJSKDVHVRISURMHFWFRQVWUXFWLRQ

8.a
November 14, 2022

Packet Pg. 295

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRIFXOWXUDOUHVRXUFHPLWLJDWLRQ $QDUFKDHRORJLFDOUHSRUWLIDSSURSULDWHZLOOEHZULWWHQGHWDLOLQJDOO DUFKDHRORJLFDOILQGVDQGVXEPLWWHGWRWKH&LW\DQGWKH1RUWKZHVW ,QIRUPDWLRQ&HQWHU
F
'LVWXUEDQ\KXPDQUHPDLQVL QFOXGLQJWKRVHLQWHUUHGRXWVLGHRIGHGLFDWHG FHPHWHULHV"
/HVVWKDQ6LJQLILFDQW,PSDFWZLWK0LWLJDWLRQ,QFRUSRUDWHG7KHSURMHFWLVQRWORFDWHGRQ ZLWKLQRUQHDUDNQRZQKLVWRULFRUPRGHUQSHULRGFHPHWHU\7KHSRWHQWLDOIRUKLVWRULFRUPRGHUQ KXPDQUHPDLQVEHLQJSUHVHQWLVH[WUHPHO\XQOLNHO\+XPDQUHPDLQVDVVRFLDWHGZLWKSUHFRQWDFW 1DWLYH$PHULFDQDUFKDHRORJLFDOGHSRVLWVKDYHWKHSRWHQWLDOWRH[LVWLQVRLOVEHORZWKHSURMHFW VLWH'XHWRWKHGHSWKRIH[FDYDWLRQUHTXLUHGIRUWKHSURMHFWLISUHVHQWKXPDQUHPDLQVZRXOG OLNHO\EHGLVWXUEHGE\SURMHFWDFWLYLW\
7KH&LW\¶V*HQHUDO3ODQ/DQG8VH(OHPHQW3ROLF\SURYLGHVIRUWKHWUHDWPHQWRIDQ\KXPDQ UHPDLQVGLVFRYHUHGGXULQJLPSOHPHQWDWLRQRISXEOLFDQGSULYDWHSURMHFWVZLWKLQWKHFLW\DQG HQVXUHWKDWWKH\IXOO\FRPSO\ZLWKWKH&DOLIRUQLD1DWLYH$PHULFDQ*UDYHV3URWHFWLRQDQG 5HSDWULDWLRQ$FWDQGRWKHUDSSURSULDWHODZV$GGLWLRQDOO\WKH&LW\ZRXOGLPSOHPHQW0LWLJDWLRQ 0HDVXUH&8/WRUHGXFHSRWHQWLDOLPSDFWVVKRXOGKXPDQUHPDLQVEHXQHDUWKHGGXULQJ HDUWKPRYLQJDFWLYLWLHVDVVRFLDWHGZLWKWKHSURSRVHGSURMHFW ,PSDFW&8/
3URMHFWFRQVWUXFWLRQSDUWLFXODUO\H[FDYDWLRQRIWKHXQGHUJURXQGSDUNLQJ JDUDJHPD\GLVWXUEKXPDQUHPDLQVGXULQJSURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0LWLJDWLRQ0HDVXUH&8/
3URWHFWLRQRI+XPDQ5HPDLQV,IKXPDQUHPDLQVDUH
XQHDUWKHGGXULQJJURXQGGLVWXUELQJDFWLYLWLHV6HFWLRQ E
RIWKH&DOLIRUQLD+HDOWK
DQG6DIHW\FRGHZLOOEHLPSOHPHQWHG6HFWLRQ
E
VWDWHV

,QWKHHYHQWRIGLVFRYHU\RUUHFRJQLWLRQRIDQ\KXPDQUHPDLQVLQDQ\ORFDWLRQ RWKHUWKDQDGHGLFDWHGFHPHWHU\WKHUHVKDOOEHQRIXUWKHUH[FDYDWLRQRU GLVWXUEDQFHRIWKHVLWHRUDQ\QHDUE\DUHDUHDVRQDEO\VXVSHFWHGWRRYHUOLH DGMDFHQWUHPDLQVXQWLOWKHFRURQHURIWKHFRXQW\LQZKLFKWKHKXPDQUHPDLQVDUH GLVFRYHUHGKDVGHWHUPLQHGLQDFFRUGDQFHZLWK&KDSWHU FRPPHQFLQJZLWK
6HFWLRQ
RI3DUWRI'LYLVLRQRI7LWOHRIWKH*RYHUQPHQW&RGHWKDWWKH UHPDLQVDUHQRWVXEMHFWWRWKHSURYLVLRQVRI6HFWLRQ RIWKH*RYHUQPHQW
&RGHRUDQ\RWKHUUHODWHGSURYLVLRQVRIODZFRQFHUQLQJLQYHVWLJDWLRQRIWKH FLUFXPVWDQFHVPDQQHUDQGFDXVHRIGHDWKDQGWKHUHFRPPHQGDWLRQV FRQFHUQLQJWUHDWPHQWDQGGLVSRVLWLRQRIWKHKXPDQUHPDLQVKDYHEHHQPDGHWR WKHSHUVRQUHVSRQVLEOHIRUWKHH[FDYDWLRQRUWRKLVRUKHUDXWKRUL]HG UHSUHVHQWDWLYHLQWKHPDQQHUSURYLGHGLQ6HFWLRQ

RIWKH3XEOLF
5HVRXUFHV&RGH
7KH&RXQW\&RURQHUXSRQUHFRJQL]LQJWKHUHPDLQVDVEHLQJRI1DWLYH$PHULFDQRULJLQ LVUHVSRQVLEOHWRFRQWDFWWKH1DWLYH$PHULFDQ+HULWDJH&RPPLVVLRQ 1$+&
ZLWKLQ
KRXUV7KH&RPPLVVLRQKDVYDULRXVSRZHUVDQGGXWLHVLQFOXGLQJWKHDSSRLQWPHQWRID 0RVW/LNHO\'HVFHQGDQW
0/'
WRWKH3URMHFW7KH0/'RULQOLHXRIWKH0/'WKH
1$+&KDVWKHUHVSRQVLELOLW\WRSURYLGHJXLGDQFHDVWRWKHXOWLPDWHGLVSRVLWLRQRIDQ\ 1DWLYH$PHULFDQUHPDLQV
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGUHGXFHLPSDFWVRQSUHYLRXVO\XQNQRZQKXPDQ UHPDLQVWROHVVWKDQVLJQLILFDQWOHYHOV
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG

8.a
November 14, 2022

Packet Pg. 296

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHLQWKHHYHQWKXPDQUHPDLQVDUH GLVFRYHUHG
7LPLQJ
'XULQJDOOHDUWKPRYLQJSKDVHVRISURMHFWFRQVWUXFWLRQ 0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRIFXOWXUDOUHVRXUFHPLWLJDWLRQ 7KH&RXQW\&RURQHUZLOOGHWDLOWKHILQGLQJVLQDFRURQHU¶VUHSRUW 5HIHUHQFHV
6KRHFUDIW'+DV6DQ&DUORV2XWJURZQLWV³,QGXVWULDO´5RDG"±&OLPDWH5HGZRRG&LW\ KWWSV
FOLPDWHUZFFRPKDVVDQFDUORVRXWJURZQLWVLQGXVWULDOURDG $FFHVVHG-DQ
%XUHDXRI/DQG0DQDJHPHQW*HQHUDO/DQG2IILFH
*/2
5HFRUGV$XWRPDWLRQ
KWWSV
JORUHFRUGVEOPJRYGHIDXOWDVS[$FFHVVHG-DQXDU\ &DOLIRUQLD6WDWH3DUNV2IILFHRI+LVWRULF3UHVHUYDWLRQKWWS RKSSDUNVFDJRY$FFHVVHG
-DQXDU\
&LW\RI6DQ&DUORV3DOR$OWR0HGLFDO)RXQGDWLRQ±6DQ&DUORV&HQWHU'UDIW(,5 KWWS
ZZZFLW\RIVDQFDUORVRUJFLYLFD[ILOHEDQNEOREGORDGDVS["EORELG $FFHVVHG
-DQXDU\
BBBBBB
6DQ&DUORV*HQHUDO3ODQ*HQHUDO3ODQ$GRSWHG2FWREHU
BBBBBB
%ULWWDQ$YHQXH3URMHFW,QLWLDO6WXG\&KHFNOLVW'HFHPEHU BBBBB+LVWRU\RI6DQ&DUORVKWWSV
ZZZFLW\RIVDQFDUORVRUJUHVLGHQWVDERXWVDQ
FDUORVVDQFDUORVKLVWRU\IVLWHLG$FFHVVHG-DQXDU\ +LVWRULF$HULDOV,QGXVWULDO5RDG6DQ&DUORV&$KWWSV KLVWRULFDHULDOVFRPYLHZHU
$FFHVVHG-DQXDU\
/HY\5LFKDUG
&RVWDQRDQLQ5)+HL]HU
HG
+DQGERRNRI1RUWK$PHULFDQ,QGLDQV9RO

&DOLIRUQLD

:DVKLQJWRQ'&6PLWKVRQLDQ,QVWLWXWH
/LEUDU\RI&RQJUHVV0H[LFDQ&DOLIRUQLDKWWSV
ZZZORFJRYFROOHFWLRQVFDOLIRUQLDILUVW
SHUVRQQDUUDWLYHVDUWLFOHVDQGHVVD\VHDUO\FDOLIRUQLDKLVWRU\PH[LFDQFDOLIRUQLD $FFHVVHG-DQXDU\
BBBBB6SDQLVK&DOLIRUQLDKWWSV
ZZZORFJRYFROOHFWLRQVFDOLIRUQLDILUVWSHUVRQ
QDUUDWLYHVDUWLFOHVDQGHVVD\VHDUO\FDOLIRUQLDKLVWRU\VSDQLVKFDOLIRUQLD$FFHVVHG -DQXDU\
BBBBB7KH0LVVLRQVKWWSV
ZZZORFJRYFROOHFWLRQVFDOLIRUQLDILUVWSHUVRQ
QDUUDWLYHVDUWLFOHVDQGHVVD\VHDUO\FDOLIRUQLDKLVWRU\PLVVLRQV$FFHVVHG-DQXDU\
1$+&8QSXEOLVKHGOHWWHUFRQWDLQLQJVHDUFKUHVXOWVIURP6DFUHG/DQGV)LOHVHDUFK.HSW RQILOHDW1$+&DQGZLWK0,*,QF
1DWLRQDO3DUN6HUYLFH1DWLRQDO5HJLVWHURI+LVWRULF3ODFHV KWWSV
ZZZQSVJRYQ5LQGH[KWP$FFHVVHG-DQXDU\
1:,&5HSRUWQXPEHU8QSXEOLVKHGFRQILGHQWLDOUHSRUWFRQWDLQLQJVHDUFKUHVXOWV IURPVLWHVSHFLILFVXUYH\.HSWRQILOHDW1:,&DQGZLWK0,*,QF

8.a
November 14, 2022

Packet Pg. 297

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
/HY\-RDQ,QWKH60&+LVWRU\0XVHXP3HUVRQ5HFRUG 3KHOSV7LPRWK\*X\
KWWS
KLVWRU\VPFSDVWSHUIHFWRQOLQHFRPE\SHUVRQ"NH\ZRUG 3KHOSV&7LPRWK\*X\ $FFHVVHG-DQXDU\
8QLWHG6WDWHV&HQVXV&HQVXVKWWSV
ZZZFHQVXVJRYFHQVXV$FFHVVHG
-DQXDU\

8.a
November 14, 2022

Packet Pg. 298

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
(1(5*<

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
5HVXOWLQSRWHQWLDOO\VLJQLILFDQWHQYLURQPHQWDO
LPSDFWGXHWRZDVWHIXOLQHIILFLHQWRU
XQQHFHVVDU\FRQVXPSWLRQRIHQHUJ\UHVRXUFHV
GXULQJSURMHFWFRQVWUXFWLRQRURSHUDWLRQ"

E
&RQIOLFWZLWKRUREVWUXFWDVWDWHRUORFDOSODQ
IRUUHQHZDEOHHQHUJ\RUHQHUJ\HIILFLHQF\"
(QYLURQPHQWDO6HWWLQJ
(QHUJ\FRQVXPSWLRQLVFORVHO\WLHGWRWKHLVVXHVRIDLUTXDOLW\DQGJUHHQKRXVHJDV *+*

HPLVVLRQVDVWKHEXUQLQJRIIRVVLOIXHOVDQGQDWXUDOJDVIRUHQHUJ\KDVDQHJDWLYHLPSDFWRQ ERWKDQGSHWUROHXPDQGQDWXUDOJDVFXUUHQWO\VXSSO\PRVWRIWKHHQHUJ\FRQVXPHGLQ &DOLIRUQLD
,QJHQHUDO&DOLIRUQLD¶VSHUFDSLWDHQHUJ\FRQVXPSWLRQLVUHODWLYHO\ORZLQSDUWGXHWRPLOG ZHDWKHUWKDWUHGXFHVHQHUJ\GHPDQGIRUKHDWLQJDQGFRROLQJDQGLQSDUWGXHWRWKH JRYHUQPHQW¶VSURDFWLYHHQHUJ\HIILFLHQF\SURJUDPVDQGVWDQGDUGV$FFRUGLQJWRWKH&DOLIRUQLD (QHUJ\&RPPLVVLRQ&DOLIRUQLDQVFRQVXPHGDERXW
JLJDZDWWKRXUV
*:K
RIHOHFWULFLW\
DQGPLOOLRQWKHUPVRIQDWXUDOJDVLQ
&(&DDQG&(&E
7KH&(&
HVWLPDWHVWKDWE\&DOLIRUQLD¶VHOHFWULFLW\FRQVXPSWLRQZLOOUHDFKEHWZHHQ*:K DQG
*:KZLWKDQDQQXDOJURZWKUDWHRI

WR
SHUFHQW
&(&
DQGQDWXUDO
JDVFRQVXPSWLRQLVH[SHFWHGWRUHDFKEHWZHHQPLOOLRQDQG PLOOLRQ%78ZLWKDQ
DQQXDOJURZWKUDWHRIWRSHUFHQW
&(&

,QWRWDOHOHFWULFLW\XVHLQ6DQ0DWHR&RXQW\ZDVPLOOLRQNLORZDWWKRXUV N:K

LQFOXGLQJPLOOLRQN:KRIFRQVXPSWLRQIRUQRQUHVLGHQWLDOODQGXVHV &(&D
1DWXUDO
JDVFRQVXPSWLRQZDVPLOOLRQWKHUPVLQLQFOXGLQJPLOOLRQWKHUPVIURPQRQ UHVLGHQWLDOXVHV
&(&E

(QHUJ\FRQVHUYDWLRQUHIHUVWRHIIRUWVPDGHWRUHGXFHHQHUJ\FRQVXPSWLRQWRSUHVHUYH UHVRXUFHVIRUWKHIXWXUHDQGUHGXFHSROOXWLRQ,WPD\LQYROYHGLYHUVLI\LQJHQHUJ\VRXUFHVWR LQFOXGHUHQHZDEOHHQHUJ\VXFKDVVRODUSRZHUZLQGSRZHUZDYHSRZHUJHRWKHUPDOSRZHU DQGWLGDOSRZHUDVZHOODVWKHDGRSWLRQRIWHFKQRORJLHVWKDWLPSURYHHQHUJ\HIILFLHQF\DQG DGRSWLRQRIJUHHQEXLOGLQJSUDFWLFHV(QHUJ\FRQVHUYDWLRQFDQEHDFKLHYHGWKURXJKLQFUHDVHVLQ HIILFLHQF\LQFRQMXQFWLRQZLWKGHFUHDVHGHQHUJ\FRQVXPSWLRQDQGRUUHGXFHGFRQVXPSWLRQIURP FRQYHQWLRQDOHQHUJ\VRXUFHV
5HJXODWRU\6HWWLQJ
6LQFHLQFUHDVHGHQHUJ\HIILFLHQF\LVFORVHO\WLHGWRWKH6WDWH¶VHIIRUWVWRUHGXFH*+*HPLVVLRQV DQGDGGUHVVJOREDOFOLPDWHFKDQJHWKHUHJXODWLRQVSROLFLHVDQGDFWLRQSODQVDLPHGDWUHGXFLQJ *+*HPLVVLRQVDOVRSURPRWHLQFUHDVHGHQHUJ\HIILFLHQF\DQGWKHWUDQVLWLRQWRUHQHZDEOH HQHUJ\VRXUFHV7KH86(3$DQGWKH6WDWHDGGUHVVFOLPDWHFKDQJHWKURXJKQXPHURXVSLHFHV RIOHJLVODWLRQUHJXODWLRQVSODQQLQJSROLF\PDNLQJHGXFDWLRQDQGLPSOHPHQWDWLRQSURJUDPV DLPHGDWUHGXFLQJHQHUJ\FRQVXPSWLRQDQGWKHSURGXFWLRQRI*+*

8.a
November 14, 2022

Packet Pg. 299

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&$5%/RZ&DUERQ)XHO6WDQGDUG5HJXODWLRQ
&$5%LQLWLDOO\DSSURYHGWKH/RZ&DUERQ)XHO6WDQGDUG
/&)6
UHJXODWLRQLQ
LGHQWLI\LQJLW
DVRQHRIWKHQLQHGLVFUHWHHDUO\DFWLRQPHDVXUHVLQLWVRULJLQDO6FRSLQJ3ODQWRUHGXFH &DOLIRUQLD¶V*+*HPLVVLRQV2ULJLQDOO\WKH/&)6UHJXODWLRQUHTXLUHGDWOHDVWDSHUFHQW UHGXFWLRQLQWKHFDUERQLQWHQVLW\RI&DOLIRUQLD¶VWUDQVSRUWDWLRQIXHOVE\ FRPSDUHGWRD
EDVHOLQH
2Q6HSWHPEHU&$5%DSSURYHGFKDQJHVWRWKH/&)6UHJXODWLRQWKDW UHTXLUHDUHGXFWLRQLQFDUERQLQWHQVLW\E\7KHVHUHJXODWRU\FKDQJHVH[FHHGWKH DVVXPSWLRQLQ&$5%¶V&OLPDWH&KDQJH6FRSLQJ3ODQZKLFKWDUJHWHGDQUHGXFWLRQLQ WUDQVSRUWDWLRQIXHOFDUERQLQWHQVLW\E\DVRQHRIWKHSULPDU\PHDVXUHVIRUDFKLHYLQJWKH VWDWH¶V*+*WDUJHW
5HQHZDEOH3RUWIROLR6WDQGDUG3URJUDP
,Q&DOLIRUQLDHVWDEOLVKHGLWV5HQHZDEOHV3RUWIROLR6WDQGDUG 536
3URJUDPZLWKWKHJRDO
RILQFUHDVLQJWKHSHUFHQWDJHRIUHQHZDEOHHQHUJ\LQWKHVWDWH¶VHOHFWULFLW\PL[WRSHUFHQWRI UHWDLOVDOHVE\7KH,QWHJUDWHG(QHUJ\3ROLF\5HSRUWUHFRPPHQGHGDFFHOHUDWLQJWKDW JRDOWRSHUFHQWE\DQGWKH(QHUJ\5HSRUW8SGDWHIXUWKHUUHFRPPHQGHG LQFUHDVLQJWKHWDUJHWWRSHUFHQWE\7KHVWDWH¶V(QHUJ\$FWLRQ3ODQDOVRVXSSRUWHGWKLV JRDO,QXQGHU6HQDWH%LOO&DOLIRUQLD¶VSHUFHQWE\536JRDOZDVFRGLILHG7KH OHJLVODWLRQUHTXLUHGUHWDLOVHOOHUVRIHOHFWULFLW\WRLQFUHDVHUHQHZDEOHHQHUJ\SXUFKDVHVE\DW OHDVWRQHSHUFHQWHDFK\HDUZLWKDWDUJHWRISHUFHQWUHQHZDEOHVE\3XEOLFO\RZQHG XWLOLWLHVVHWWKHLURZQ536JRDOVUHFRJQL]LQJWKHLQWHQWRIWKHOHJLVODWXUHWRDWWDLQWKHSHUFHQW E\WDUJHW
2Q1RYHPEHU*RYHUQRU6FKZDU]HQHJJHUVLJQHG([HFXWLYH2UGHU6UHTXLULQJ ³>D@OOUHWDLOVHOOHUVRIHOHFWULFLW\VKDOOVHUYHSHUFHQWRIWKHLUORDGZLWKUHQHZDEOHHQHUJ\E\ ´7KHIROORZLQJ\HDU([HFXWLYH2UGHU6
GLUHFWHGWKH&DOLIRUQLD$LU5HVRXUFHV
%RDUGXQGHULWV$%DXWKRULW\WRHQDFWUHJXODWLRQVWRDFKLHYHWKHJRDORISHUFHQW UHQHZDEOHVE\
,Q2FWREHU*RYHUQRU%URZQVLJQHG6HQDWH%LOOWRFRGLI\DPELWLRXVFOLPDWHDQGFOHDQ HQHUJ\JRDOV2QHNH\SURYLVLRQRI6%LVIRUUHWDLOVHOOHUVDQGSXEOLFO\RZQHGXWLOLWLHVWR SURFXUH³KDOIRIWKHVWDWH¶VHOHFWULFLW\IURPUHQHZDEOHVRXUFHVE\´ 7KH6WDWH¶V536SURJUDPZDVIXUWKHUVWUHQJWKHQHGE\WKHSDVVDJHRI6%LQ6% UHYLVHGWKH6WDWH¶V5363URJUDPWRUHTXLUHUHWDLOVHOOHUVRIHOHFWULFLW\WRVHUYHDQGRI WKHWRWDONLORZDWWKRXUVVROGWRUHWDLOHQGXVHFXVWRPHUVEHVHUYHGE\UHQHZDEOHHQHUJ\VRXUFHV E\DQGUHVSHFWLYHO\DQGUHTXLUHVRIDOOHOHFWULFLW\VXSSOLHGFRPHIURP UHQHZDEOHVRXUFHVE\
7LWOH(QHUJ\6WDQGDUGVDQG&LW\RI6DQ&DUORV5HDFK&RGHV 3DUWRIWKH7LWOH%XLOGLQJ6WDQGDUGV&RGHLVUHIHUUHGWRDVWKH&DOLIRUQLD*UHHQ%XLOGLQJ 6WDQGDUGV&RGH
&$/*UHHQ&RGH
7KH&DO*UHHQ&RGHFRQWDLQVERWKPDQGDWRU\DQG
YROXQWDU\PHDVXUHV)RUQRQUHVLGHQWLDOODQGXVHVWKHUHDUH PDQGDWRU\PHDVXUHVLQFOXGLQJ
EXWQRWOLPLWHGWRH[WHULRUOLJKWSROOXWLRQUHGXFWLRQZDVWHZDWHUUHGXFWLRQE\SHUFHQWDQG FRPPLVVLRQLQJRI3URMHFWVRYHUVTXDUHIHHW2Q-DQXDU\WKH6DQ&DUORV&LW\ &RXQFLODGRSWHG5HDFK&RGHVZKLFKH[SDQGXSRQWKHHQHUJ\HIILFLHQF\UHTXLUHPHQWV FRQWDLQHGLQWKH&DO*UHHQ&RGH7KH&LW\¶V5HDFK&RGHVZHUHDSSURYHGE\WKH&(&DQGZHQW LQWRHIIHFWRQ0D\
6DQ&DUORV

6DQ&DUORV&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ
2Q6HSWHPEHU6DQ&DUORVDGRSWHGWKH&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ

&0$3
WRUHGXFH*+*HPLVVLRQV7KH&0$3KDVJRDOVZKLFKLQFOXG HUHGXFLQJHQHUJ\XVH
WUDQVLWLRQLQJWRFDUERQIUHHHQHUJ\VRXUFHVSURPRWLQJHQHUJ\UHVLOLHQFHSURPRWLQJ

8.a
November 14, 2022

Packet Pg. 300

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
GHYHORSPHQWZKLFKUHGXFHV907DQGXVLQJORZFDUERQWUDQVSRUWDWLRQ,WLGHQWLILHVVWUDWHJLHV DQGDFWLRQVWRUHGXFHHQHUJ\FRQVXPSWLRQ
'LVFXVVLRQ
:RXOGWKHSURMHFW

D
5HVXOWLQSRWHQWLDOO\VLJQLILF DQWHQYLURQPHQWDOLPSDFWGXHWRZDVWHIXO LQHIILFLHQWRUXQQHFHVVDU\FRQVXPSWLRQRIHQHUJ\UHVRXUFHVGXULQJSURMHFW FRQVWUXFWLRQRURSHUDWLRQ"
/HVVWKDQ6LJQLILFDQW,PSDFW&RQVWUXFWLRQDFWLYLWLHVDVVRFLDWHGZLWKWKHSURSRVHGSURMHFW ZRXOGUHTXLUHWKHXVHRIKHDY\GXW\RIIURDGHTXLSPHQWDQGFRQVWUXFWLRQUHODWHGYHKLFOHWULSV WKDWZRXOGFRPEXVWIXHOSULPDULO\GLHVHODQGJDVROLQH+HDY\GXW\FRQVWUXFWLRQHTXLSPHQW ZRXOGEHUHTXLUHGWRFRPSO\ZLWK&$5%¶VDLUERUQHWR[LFFRQWUROPHDVXUHVZKLFKUHVWULFWKHDY\ GXW\GLHVHOYHKLFOHLGOLQJWRILYHPLQXWHV6LQFHSHWUROHXPXVHGXULQJFRQVWUXFWLRQZRXOGEH WHPSRUDU\DQGQHHGHGWRFRQGXFWGHYHORSPHQWDFWLYLWLHVLWZRXOGQRWEHZDVWHIXORULQHIILFLHQW 2QFHRSHUDWLRQDOWKHSURSRVHGSURMHFWZRXOGIXQFWLRQDVDQHZOLIHVFLHQFHEXLOGLQJDQG FRQVXPHHQHUJ\LQWKHIRUPRIHOHFWULFLW\DQGQDWXUDOJDVIRUEXLOGLQJSURFHVVHV HJKHDWLQJ
DQGFRROLQJOLJKWLQJHWF
DQGSHWUROHXPSURGXFWV
HJJDVROLQHDQGGLHVHO
DVVRFLDWHGZLWK
YHKLFOHWULSVWRDQGIURPWKHVLWHPDGHE\HPSOR\HHV 7KHSURSRVHGSURMHFWZRXOGEHVXEMHFWWRWKHHQHUJ\VWDQGDUGVFRQWDLQHGLQWKH&DO*UHHQ &RGH7KHSURMHFWZRXOGQRWEHVXEMHFWWRWKH&LW\¶V5HDFK&RGHEHFDXVHLWKDVUHFHLYHGDQ H[HPSWLRQ7KHSURMHFWKDVEHHQDSSURYHGIRULWVQDWXUDOJDVH[HPSWLRQUHTXHVWXQGHUWKH6DQ &DUORV0XQLFLSDO&RGH6HFWLRQPHDQLQJWKDWLWZRXOGQRWEHDOOHOHFWULF6SHFLILFDOO\ WKH5HDFK&RGHH[HPSWLRQIRUVFLHQWLILFODEVDOORZVIRUWKHXVHRIQDWXUDOJDVIRUVSDFHKHDWLQJ DVORQJDVDWKLUGSDUW\YHULILHVWKDWDQDOOHOHFWULFGHVLJQLVQRWFRVWHIIHFWLYHDQGWHFKQLFDOO\ IHDVLEOH7KHSURMHFW$SSOLFDQWKDVEHHQDSSURYHGIRUWKHLUUHTXHVWWREHH[HPSWIURPWKHDOO HOHFWULF5HDFK&RGHSURYLVLRQ
6DQ&DUORV0XQLFLSDO&RGH6HFWLRQ
7KHUHIRUHWKH
HQHUJ\DQGJUHHQKRXVHJDVHPLVVLRQVHVWLPDWHVGRQRWWDNHFUHGLWIRUWKHSRWHQWLDOQDWXUDOJDV UHGXFWLRQVWKDWFRXOGFRPHIURPDQDOOHOHFWULFGHVLJQ $VHVWLPDWHGXVLQJ&DO((0RGWKHSURSRVHGSURMHFWZRXOGFRQVXPHDSSUR[LPDWHO\ N:KRIHOHFWULFLW\DQGN%78RQDQDQQXDOEDVLV,WLVQRWHGWKHVHYDOXHVDUH FRQVLGHUHGFRQVHUYDWLYH
LHOLNHO\WRRYHUHVWLPDWH
HVWLPDWHVEHFDXVHWKH\GRQRWDFFRXQWIRU
WKHGHFUHDVHLQHQHUJ\FRQVXPSWLRQWKDWZRXOGRFFXUZKHQWKHH[LVWLQJVWRUDJHIDFLOLW\FHDVHV WRRSHUDWHDWWKHSURMHFWVLWH
LHWKHVHYDOXHVDUHJURVVQRWQHW

$OWKRXJKWKHSURSRVHGSURMHFWZRXOGLQFUHDVHHQHUJ\GHPDQGDWWKHVLWHRYHUWKHORQJWHUPLW ZRXOGGRVRLQDQHIILFLHQWPDQQHU7KHSURSRVHGSURMHFWZRXOGPHHWRUH[FHHGWKH 7LWOH
%XLOGLQJ&RGHUHTXLUHPHQWVZKLFKDUHDSSUR[LPDWHO\SHUFHQWPRUHHIILFLHQWWKDQWKH &DO*UHHQ&RGHUHTXLUHPHQWVIRUQRQUHVLGHQWLDOGHYHORSPHQW 7KHSURSRVHGSURMHFWZRXOGDOVRLPSOHPHQWQXPHURXVJUHHQIHDWXUHVWRKHOSUHGXFHWKH DPRXQWRIVLQJOHRFFXSDQF\YHKLFOHWULSVWRDQGIURPWKHVLWH7KHSURMHFWZRXOGFRPSO\ZLWKWKH 6DQ&DUORV¶7UDQVSRUWDWLRQ'HPDQG0DQDJHPHQW
7'0
SROLF\ZKLFKUHTXLUHVDWULS
UHGXFWLRQ7RDFKLHYHWKLVWKHSURMHFWZRXOGIROORZD7'03ODQ,WZRXOGSURYLGHDSSUR[LPDWHO\ ELF\FOHSDUNLQJVSDFHVLQFOXGLQJORQJWHUPLQGRRUVSDFHV7KHSURSRVHGSURMHFWZRXOG DOVRSURYLGHGHGLFDWHGVSDFHVIRUFDUSRRODQGYDQSRROSDUNLQJDQGGHGLFDWHGVSDFHV ZLWKFKDUJLQJVWDWLRQVIRUHOHFWULFYHKLFOHV7KHSURMHFWPD\LQFOXGHDSHGHVWULDQDQGELF\FOH
7KHSURSRVHGSURMHFWLVDOVRQRWUHTXLUHGWRLQVWDOODSKRWRYROWDLFV\VWHP LHVRODUSDQHOV
WKURXJKWKH
5HDFK&RGHH[HPSWLRQ

8.a
November 14, 2022

Packet Pg. 301

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
EULGJHIURPWKHVRXWKZHVWHUQSRUWLRQRIWKHVLWHWR+ROO\6WUHHWZKLFKZRXOGDOORZFRQYHQLHQW DQGVDIHDFFHVVWRWKHVLWHIRUSHRSOHXVLQJDFWLYHWUDQVSRUWDWLRQ7KHIRUPVDQGTXDQWLW\RI HQHUJ\WKHSURSRVHGSURMHFWZRXOGFRQVXPHDUHHVVHQWLDOWRVXFFHVVIXODQGVDIHXVHRID ODERUDWRU\DQGRIILFHGHYHORSPHQW$VVXFKWKHSURSRVHGSURMHFW¶VHQHUJ\FRQVXPSWLRQZRXOG QRWEHZDVWHIXOLQHIILFLHQWRUXQQHFHVVDU\7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW E
&RQIOLFWZLWKRUREVWUXFWDVWDWHRUORFDOSODQIRUUHQHZDEO HHQHUJ\RUHQHUJ\ HIILFLHQF\"
1R,PSDFW7KHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKQRUREVWUXFWDVWDWHRUORFDOSODQ DGRSWHGIRUWKHSXUSRVHVRILQFUHDVLQJWKHDPRXQWRIUHQHZDEOHHQHUJ\RUHQHUJ\HIILFLHQF\$V GLVFXVVHGXQGHUUHVSRQVHD
WKHSURSRVHGSURMHFWZRXOGEHFRQVWUXFWHGWRWKHODWHVW&DO*UHHQ &RGHZKLFKZRXOGPDNHLWPRUHHQHUJ\HIILFLHQWWKDQPDQ\RIWKHEXLOGLQJVFXUUHQWO\LQ RSHUDWLRQLQWKH&LW\)XUWKHUPRUHWKHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKWKH&LW\¶V&0$3 VLQFHPDQ\RIWKHDFWLRQVLQWKH&0$3FRQVLVWRILWHPVWKH&LW\ZLOOSXUVXH VHH6HFWLRQ
*UHHQKRXVH*DV(PLVVLRQV
DQGGRQRWDSSO\WRWKHSURMHFW1RLPSDFWZRXOGRFFXU 5HIHUHQFHV
&DOLIRUQLD(QHUJ\&RPPLVVLRQ
&(&
,QWHJUDWHG(QHUJ\3ROLF\5HSRUW,(35 :RUNVKRSV1RWLFHVDQG'RFXPHQWVKWWSV
ZZZHQHUJ\FDJRYGDWD
UHSRUWVUHSRUWVLQWHJUDWHGHQHUJ\SROLF\UHSRUWLQWHJUDWHGHQHUJ\SROLF\ UHSRUWLHSU
BBBBBD³(OHFWULFLW\&RQVXPSWLRQE\&RXQW\´(OHFWULFLW\&RQVXPSWLRQE\&RXQW\&(& (QHUJ\&RQVXPSWLRQ'DWDEDVHQG$FFHVVHG'HFHPEHUDW KWWS
HFGPVHQHUJ\FDJRYHOHFE\FRXQW\DVS[
BBBBBE³*DV&RQVXPSWLRQE\&RXQW\´*DV&RQVXPSWLRQE\&RXQW\&(&(QHUJ\ &RQVXPSWLRQ'DWDEDVHQG$FFHVVHG'HFHPEHUDW KWWS
HFGPVHQHUJ\FDJRYJDVE\FRXQW\DVS[
&LW\RI6DQ&DUORV
6DQ&DUORV
/RFDO%XLOGLQJ(QHUJ\6WDQGDUGV³6XPPDU\RI&LW\RI 6DQ&DUORV1HZ&RQVWUXFWLRQ5HTXLUHPHQWV´)HEUXDU\$FFHVVHG0D\ DWKWWSV
ZZZFLW\RIVDQFDUORVRUJ+RPH6KRZ'RFXPHQW"LG
BBBBBB&LW\RI6DQ&DUORV&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ$GRSWHG6HSWHPEHU

8.a
November 14, 2022

Packet Pg. 302

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
*(2/2*<$1'62,/6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
'LUHFWO\RULQGLUHFWO\FDXVHSRWHQWLDO
VXEVWDQWLDODGYHUVHHIIHFWVLQFOXGLQJWKHULVNRI
ORVVLQMXU\RUGHDWKLQYROYLQJ

L
5XSWXUHRIDNQRZQHDUWKTXDNHIDXOWDV
GHOLQHDWHGRQWKHPRVWUHFHQW$OTXLVW3ULROR
(DUWKTXDNH)DXOW=RQLQJ0DSLVVXHGE\WKH
6WDWH*HRORJLVWIRUWKHDUHDRUEDVHGRQRWKHU
VXEVWDQWLDOHYLGHQFHRIDNQRZQIDXOW"
1RWH
5HIHUWR'LYLVLRQRI0LQHVDQG*HRORJ\
6SHFLDO3XEOLFDWLRQ

LL
6WURQJVHLVPLFJURXQGVKDNLQJ"
LLL
6HLVPLFUHODWHGJURXQGIDLOXUHLQFOXGLQJ
OLTXHIDFWLRQ"
LY
/DQGVOLGHV"
E
5HVXOWLQVXEVWDQWLDOVRLOHURVLRQRUWKHORVVRI
WRSVRLO"
F
%HORFDWHGRQDJHRORJLFXQLWRUVRLOWKDWLV
XQVWDEOHRUWKDWZRXOGEHFRPHXQVWDEOHDVD
UHVXOWRIWKHSURMHFWDQGSRWHQWLDOO\UHVXOWLQRQ
RURIIVLWHODQGVOLGHODWHUDOVSUHDGLQJ
VXEVLGHQFHOLTXHIDFWLRQRUFROODSVH"

G
%HORFDWHGRQH[SDQVLYHVRLODVGHILQHGLQ
7DEOH%RIWKH8QLIRUP%XLOGLQJ&RGH

FUHDWLQJVXEVWDQWLDOGLUHFWRULQGLUHFWULVNV
WROLIHRUSURSHUW\"

H
+DYHVRLOVLQFDSDEOHRIDGHTXDWHO\VXSSRUWLQJ
WKHXVHRIVHSWLFWDQNVRUDOWHUQDWLYHZDVWHZDWHU
GLVSRVDOV\VWHPVZKHUHVHZHUVDUHQRWDYDLODEOH
IRUWKHGLVSRVDORIZDVWHZDWHU"

I
'LUHFWO\RULQGLUHFWO\GHVWUR\DXQLTXH
SDOHRQWRORJLFDOUHVRXUFHRUVLWHRUXQLTXH
JHRORJLFIHDWXUH"

(QYLURQPHQWDO6HWWLQJ
$*HRWHFKQLFDO,QYHVWLJDWLRQZDVSUHSDUHGIRUWKHSURMHFWE\/DQJDQ(QJLQHHULQJDQG (QYLURQPHQWDO6HUYLFHV,QF
/DQJDQ(QJLQHHULQJ
GDWHG0D\DQGLWVILQGLQJVDUH
VXPPDUL]HGLQWKLVVHFWLRQ7KHUHSRUWILQGLQJVDUHEDVHGRQVLWHDQGVXEVXUIDFHFRQGLWLRQV UHYLHZRISUHYLRXVLQYHVWLJDWLRQVDWWKHVLWHDQGLWVYLFLQLW\DVZHOODVUHYLHZRISXEOLVKHG OLWHUDWXUH
)URPDJHRWHFKQLFDOHQJLQHHULQJVWDQGSRLQWWKH/DQJDQ(QJLQHHULQJUHSRUWIRXQGWKDWWKH SURMHFWVLWHLVVXLWDEOHIRUWKHSURSRVHGGHYHORSPHQWSURYLGHGWKHJHRWHFKQLFDO UHFRPPHQGDWLRQVLQWKHUHSRUWDUHSURSHUO\LQFRUSRUDWHGLQWRWKHGHVLJQSODQVDQG

8.a
November 14, 2022

Packet Pg. 303

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
VSHFLILFDWLRQV7KHSULPDULO\JHRWHFKQLFDOFRQFHUQVLGHQWLILHGLQWKHUHSRUWWKDWFRXOGDIIHFWWKH GHYHORSPHQWRQWKHVLWHDUH

x 6ORSHVWDELOLW\DORQJWKHGUDLQDJHWKDWERUGHUVWKHVLWHWRWK HVRXWKDQGHDVW x 6HOHFWLRQRIDSSURSULDWHIRXQGDW LRQW\SH
V
WRVXSSRUWWKHSODQQHGEXLOGLQJ
x /LTXHIDFWLRQKD]DUGDWWKHVLWHDQGEHQHDWKWKHSODQQHGEDVHPH QW x 6KDOORZJURXQGZDWHUWDEOHUHODWLYHWRWKHSODQQHGERWWRPRIH[ FDYDWLRQ x 6XSSRUWRIQHLJKERULQJLPSURYHP HQWDGMDFHQWWRWKHEDVHPHQWRIH[FDYDWLRQ 5HJLRQDO*HRORJ\
7KHSURMHFWVLWHDQGWKHVXUURXQGLQJSDUWVRI6DQ&DUORVDUHORFDWHGRQWKH6DQ)UDQFLVFR 3HQLQVXODZKLFKLVVHWZLWKLQWKHODUJHU&RDVW5DQJHV*HRPRUSKLF3URYLQFH7KLVSURYLQFHLV FKDUDFWHUL]HGE\QRUWKZHVWVRXWKHDVWWUHQGLQJPRXQWDLQUDQJHVWKDWVWUHWFKIURPWKH2UHJRQ ERUGHURQWKHQRUWKWR3RLQW&RQFHSWLRQRQWKHVRXWK,QWKH6DQ)UDQFLVFR%D\DUHDPRVWRI WKH&RDVW5DQJHVDUHXQGHUODLQE\WKHWHFWRQLFDOO\FRPSOH[-XUDVVLFWR&UHWDFHRXVDJH VHGLPHQWDU\DQGPHWDPRUSKLFEHGURFNRIWKH)UDQFLVFDQ&RPSOH[%DVHGRQJHRORJLFPDSSLQJ E\WKH86*HRORJLFDO6XUYH\
86*6
WKHSURMHFWVLWHLVXQGHUODLQE\+RORFHQHDJHFRDUVH JUDLQHGDOOXYLXP
86*6

6LWH&RQGLWLRQV
7KHVLWHLVUHODWLYHO\OHYHOZLWKJURXQGVXUIDFHHOHYDWLRQVEHWZHHQDERXW WRIHHW7KHVLWH
ZDVRULJLQDOO\DWLGDOPDUVKZKLFKKDVVLQFHEHHQUHFODLPHG /DQJDQ(QJLQHHULQJDQG
(QYLURQPHQWDO6HUYLFHV,QF
$IRUPHUVORXJKFXWWKURXJKWKHQRUWKHUQSRUWLRQRIWKHVLWH EXWKDVVLQFHEHHQILOOHGLQZLWKLQWKHIRRWSULQWRIWKHVLWH+RZHYHUDILYHIRRWZLGHFKDQQHOL]HG GUDLQDJHFKDQQHOZKLFKUXQVDORQJWKHQRUWKHDVWDQGVRXWKHDVWSRUWLRQVRIWKHVLWHUHPDLQVLQ SODFH
%DVHGRQVLWHUHFRQQDLVVDQFHWKHGUDLQDJHFKDQQHOLVDERXWILYHIHHWZLGHDWWKHEDVHZLWK DERXWILYHWRHLJKWIHHWKLJKFUHHNEDQNVZKHUHDGMDFHQWWRWKHVLWH7KHEDQNVDUHVORSHGDW DERXW

KRUL]RQWDOWRYHUWLFDO
$WWKHWRHRIWKHGUDLQDJHFKDQQHOWKHUHLVDQDSSUR[LPDWH IRRWWDOOYHUWLFDOVHFWLRQ7KHFRQFUHWHERWWRPRIWKHFKDQQHOLVDSSUR[LPDWHO\WRIHHWGHHS EHORZWKHZDWHUVXUIDFHZKHUHSUREHG%DVHGRQDUHYLHZRID PHPRUDQGXPE\&DOWUDQV
/DQJDQ(QJLQHHULQJXQGHUVWRRGWKHFRQVWUXFWLRQRIWKHGUDLQDJHFKDQQHOFRQVLVWHGRI H[FDYDWLQJRXWWKHPDMRULW\RIWKH%D\0XGZLWKLQWKHFKDQQHODOLJQPHQWOLQLQJWKHERWWRPRIWKH FKDQQHOZLWKFRQFUHWHDQGEDFNILOOLQJWKHEDQNVZLWKHQJLQHHUHGILOO7KLVOLNHO\UHTXLUHG EDFNVORSLQJDQGEHQFKLQJLQWRWKHVLWHRQWRWKHVLWHWRDFFRPPRGDWHWKHRYHUH[FDYDWLRQ7KHVH EDFNVORSHGDQGEHQFKHGDUHDVZHUHOLNHO\EDFNILOOHGZLWKHQJLQHHUHGILOODOWKRXJKQRUHFRUGVRI WKHSODFHPHQWRUFRPSDFWLRQRIWKLVILOOFRXOGEHIRXQGDWWKLVWLPH *URXQGZDWHU
*URXQGZDWHUGHSWKVUHFRUGHGIURPERULQJVZHUHUHFRUGHGZLWKVKRUWSHULRGVRIWLPHIROORZLQJ H[SORUDWLRQ*URXQGZDWHUZDVHQFRXQWHUHGGXULQJGULOOLQJLQWKHERULQJVDWGHSWKVRIDERXWWR IHHWEHORZJURXQGVXUIDFHEHWZHHQDSSUR[LPDWH(OHYDWLRQVRIWRIHHW*URXQGZDWHU OHYHOVEHQHDWKWKHVLWHOLNHO\YDU\ZLWKWKHVHDVRQDQGWKHDPRXQWRISUHFLSLWDWLRQUHFHLYHG 6XEVXUIDFH&RQGLWLRQV
7KHVLWHLVJHQHUDOO\XQGHUODLQE\DOD\HURIILOORYHU%D\0XG7KHILOOFRQVLVWVRIORRVHVDQG\ PDWHULDOZLWKJUDYHODQGFREEOHVDQGYDULHVLQWKLFNQHVVIURPWKUHHWRILYHIHHWZKHUHH[SORUHG GXULQJWKHJHRWHFKQLFDOLQYHVWLJDWLRQ7KHXQGHUO\LQJ%D\0XGL VDZHDNFRPSUHVVLEOHPDULQH
FOD\WKDWLVVL[WRIHHWWKLFNDFURVVWKHVLWH7KH%D\0XGLVSUHGRPLQDQWO\XQGHUODLQE\ PHGLXPVWLIIWRVWLIIFOD\DQGVDQG\FOD\OD\HUVLQWHUEHGGHGZLWKLQWHUPLWWHQWORRVHWRYHU\GHQVH FOD\H\DQGVLOW\VDQGOD\HUVZLWKRFFDVLRQDOJUDYHO7KHVDQG\OD\HUVZKHUHHQFRXQWHUHGDUH DERXWWRIHHWWKLFN
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF

8.a
November 14, 2022

Packet Pg. 304

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
)DXOWLQJDQG6HLVPLFLW\
7KH6DQ)UDQFLVFR%D\$UHDFRQWDLQVQXPHURXVDFWLYHIDXOWVDQG LVFRQVLGHUHGVHLVPLFDOO\ DFWLYH1XPHURXVVPDOOHDUWKTXDNHVRFFXUHYHU\\HDULQWKH6DQ )UDQFLVFR%D\5HJLRQDQG ODUJHUHDUWKTXDNHVKDYHEHHQUHFRUGHGDQGFDQEHH[SHFWHGWRRFFXULQWKHIXWXUH 7KH0RQWH9LVWD±6KDQQRQ
NPRUPLOHV
6DQ$QGUHDV
NPRUPLOHV
DQG
3LODUFLWRV

NPRUPLOHV
DUHWKHPDMRUIDXOWVFORVHVWWRWKHVLWH2WKHUPDMRUHDUWKTXDNH IDXOWVLQWKH6DQ)UDQFLVFR%D\$UHDLQFOXGH
WKH+D\ZDUG)DXOWZKLFKLVDSSUR[LPDWHO\
PLOHVQRUWKHDVWRIWKHVLWHWKH&DODYHUDV)DXOWZKLFKLVDSSUR[LPDWHO\PLOHVWRHDVWRIWKH SURMHFWVLWHDQGWKH6DQ*UHJRULR)DXOWDSSUR[LPDWHO\PLOHVZHVWRIWKHSURMHFWVLWH /DQJDQ
(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF

7KH86*HRORJLF6XUYH\
86*6
SUHGLFWHGDSHUFHQWFKDQFHRIDPDJQLWXGHRU
JUHDWHUHDUWKTXDNHRFFXUULQJLQWKH6DQ)UDQFLVFR%D\$UHDLQ\HDUV /DQJDQ(QJLQHHULQJ
DQG(QYLURQPHQWDO6HUYLFHV,QF

'XULQJDPDMRUHDUWKTXDNHRQDVHJPHQWRIRQHRIWKHQHDUE\IDXOWVVWURQJWRYHU\VWURQJ VKDNLQJLVH[SHFWHGWRRFFXUDWWKHVLWH6WURQJVKDNLQJGXULQJDQHDUWKTXDNHFDQUHVXOWLQ JURXQGIDLOXUHVXFKDVWKDWDVVRFLDWHGZLWKIDXOWUXSWXUHVRLOOLTXHIDFWLRQODWHUDOVSUHDGLQJDQG F\FOLFVRLOGHQVLILFDWLRQ(DFKRIWKHVHFRQGLWLRQVZDVHYDOXDWHGEDVHGRQWKHUHVXOWVRIWKH /DQJDQ(QJLQHHULQJJHRORJLFKD]DUGHYDOXDWLRQDQGJHRWHFKQLFDOLQYHVWLJDWLRQDQGLVGLVFXVVHG LQWKHLQGHWDLOLQWKHJHRWHFKQLFDOUHSRUWDQGVXPPDUL]HGKHUH 6XUIDFH)DXOWLQJ
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
KRZHYHUWKHULVNRIVXUIDFHIDXOWLQJDQGFRQVHTXHQWVHFRQGDU\ JURXQGIDLOXUHDWWKHVLWHLVORZ
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
/LTXHIDFWLRQ6XVFHSWLELOLW\
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
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF

/DWHUDO6SUHDGLQJ
/DWHUDOVSUHDGLQJLQYROYHVODWHUDOJURXQGPRYHPHQWVFDXVHGE\VHLVPLFVKDNLQJ7KHVHODWHUDO JURXQGPRYHPHQWVDUHRIWHQDVVRFLDWHGZLWKDZHDNHQLQJRUIDLOXUHRIDQHPEDQNPHQWRUVRLO PDVVRYHUO\LQJDFRQWLQXRXVOD\HURIOLTXHILHGVDQGRUZHDNVRLOV/DWHUDOVSUHDGLQJLVJHQHUDOO\ WKHPRVWSHUYDVLYHDQGGDPDJLQJW\SHRIOLTXHIDFWLRQLQGXFHGJURXQGIDLOXUHJHQHUDWHGE\ HDUWKTXDNHV
7KHSRWHQWLDOIRUODWHUDOVSUHDGLQJODWHUDOVSUHDGLQJLVQRWFRQVLGHUHGDQLVVXHIRUWKHVLWH

/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF

8.a
November 14, 2022

Packet Pg. 305

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&\FOLF'HQVLILFDWLRQ
&\FOLFGHQVLILFDWLRQFDQRFFXUGXULQJVWURQJJURXQGVKDNLQJLQORRVHFOHDQJUDQXODUGHSRVLWV DERYHWKHZDWHUWDEOHUHVXOWLQJLQJURXQGVXUIDFHVHWWOHPHQW 7KHSRWHQWLDOIRUF\FOLFGHQVLILFDWLRQDWWKHVLWHLVORZ /DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO
6HUYLFHV,QF

5HJXODWRU\6HWWLQJ
$OTXLVW3ULROR(DUWKTXDNH)DXOW=RQLQJ$FW
7KH$OTXLVW3ULROR(DUWKTXDNH)DXOW=RQLQJ$FWUHJXODWHVGHYHORSPHQWLQ&DOLIRUQLDQHDUNQRZQ DFWLYHIDXOWVGXHWRKD]DUGVDVVRFLDWHGZLWKVXUIDFHIDXOWUXSWXUHV7KHUHDUHQR$OTXLVW3ULROR HDUWKTXDNHIDXOW]RQHVRQWKH3URMHFWVLWH
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV
,QF

6HLVPLF+D]DUG0DSSLQJ$FW
7KH6HLVPLF+D]DUG0DSSLQJ$FWZDVSDVVHGLQ

IROORZLQJWKH/RPD3ULHWDHDUWKTXDNHWR
UHGXFHWKUHDWVWRSXEOLFKHDOWKDQGVDIHW\DQGWRPLQLPL]HSURSHUW\GDPDJHFDXVHGE\ HDUWKTXDNHV7KHDFWGLUHFWVWKH86'HSDUWPHQWRI&RQVHUYDWLRQWRLGHQWLI\DQGPDSDUHDV SURQHWRWKHHDUWKTXDNHKD]DUGVRIOLTXHIDFWLRQHDUWKTXDNHLQGXFHGODQGVOLGHVDQGDPSOLILHG JURXQGVKDNLQJ7KHDFWUHTXLUHVVLWHVSHFLILFJHRWHFKQLFDOLQYHVWLJDWLRQVWRLGHQWLI\SRWHQWLDO VHLVPLFKD]DUGVDQGIRUPXODWHPLWLJDWLRQPHDVXUHVSULRUWRSHUPLWWLQJPRVWGHYHORSPHQWV GHVLJQHGIRUKXPDQRFFXSDQF\ZLWKLQWKH=RQHVRI5HTXLUHG,QYHVWLJDWLRQ &DOLIRUQLD%XLOGLQJ&RGH
7KH
&DOLIRUQLD%XLOGLQJ&RGHV
&%&
FRYHUVJUDGLQJDQGRWKHUJHRWHFKQLFDOLVVXHV
EXLOGLQJVSHFLILFDWLRQVDQGQRQEXLOGLQJVWUXFWXUHV &DOLIRUQLD3XEOLF5HVRXUFHV&RGH
6HFWLRQ
RIWKH3XEOLF5HVRXUFHV&RGHVSHFLILHVWKHSURFHGXUHVWREHIROORZHGLQWKHHYHQW RIWKHXQH[SHFWHGGLVFRYHU\RIKLVWRULFDUFKDHRORJLFDODQGSDOHRQWRORJLFDOUHVRXUFHVLQFOXGLQJ KXPDQUHPDLQVKLVWRULFRUSUHKLVWRULFUHVRXUFHVSDOHRQWRORJLFDOUHVRXUFHVRQQRQIHGHUDOODQG 7KHGLVSRVLWLRQRI1DWLYH$PHULFDQEXULDOVIDOOVZLWKLQWKHMXULVGLFWLRQRIWKH&DOLIRUQLD1DWLYH $PHULFDQ+HULWDJH&RPPLVVLRQ
1$+&
6HFWLRQ
RIWKH&RGHVWDWHVWKHIROORZLQJ

1RSHUVRQVKDOONQRZLQJO\DQGZLOOIXOO\H[FDYDWHXSRQRUUHPRYHGHVWUR\LQMXUHRU GHIDFHDQ\KLVWRULFRUSUHKLVWRULFUXLQVEXULDOJURXQGVDUFKDHRORJLFDORUYHUWHEUDWH SDOHRQWRORJLFDOVLWHLQFOXGLQJIRVVLOL]HGIRRWSULQWVLQVFULSWLRQVPDGHE\KXPDQDJHQF\ RUDQ\RWKHUDUFKDHRORJLFDOSDOHRQWRORJLFDORUKLVWRULFDOIHDWXUHVLWXDWHGRQSXEOLF ODQGVH[FHSWZLWKWKHH[SUHVVSHUPLVVLRQRIWKHSXEOLFDJHQF\KDYLQJMXULVGLFWLRQRYHU VXFKODQGV9LRODWLRQRIWKLVVHFWLRQLVDPLVGHPHDQRU 6DQ&DUORV*HQHUDO3ODQ
7KH&LW\DGRSWHGWKH6DQ&DUORV*HQHUDO3ODQ
(QYLVLRQLQ2FWREHU
7KHIROORZLQJ
DUHWKHUHOHYDQWSROLFLHVDQGDFWLRQVLQWKH&RPPXQLW\6DIHW\DQG6HUYLFHV(OHPHQW
x 3ROLF\&66
7KH&LW\%XLOGLQJ2IILFLDOVKDOOYHULI\JHRWHFKQLFDODQGVRLOVUHSRUWVIRU GHYHORSPHQWLQDUHDVZKHUHSRWHQWLDOO\VHULRXVJHRORJLFULVNVH[LVW7KHVHUHSRUWVVKDOO DGGUHVVWKHGHJUHHRIKD]DUGGHVLJQSDUDPHWHUVIRUWKHSURMHFWEDVHGRQWKHKD]DUG DQGDSSURSULDWHPLWLJDWLRQPHDVXUHV%DVHGRQWKHILQGLQJVRIWKHVHUHSRUWVWKH&LW\ VKDOOUHTXLUHWKDWQHZVWUXFWXUHVDUHGHVLJQHGDQGEXLOWWRZLW KVWDQGWKHHIIHFWVRI
VHLVPLFDOO\LQGXFHGJURXQGIDLOXUH

8.a
November 14, 2022

Packet Pg. 306

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
x 3ROLF\&66
3URKLELWVWUXFWXUDOGHYHORSPHQWLQNQRZQDUHDVZKHUHVHLVPLFDQG JHRORJLFDOKD]DUGVFDQQRWEHPLWLJDWHG
x 3ROLF\&66
&RQWLQXHWRPRQLWRUDQGHQIRUFHPLWLJDWLRQPHDVXUHVWRUHGXFHULVNIRU SURMHFWVZKHUHJHRORJLFDODQGVHLVPLFKD]DUGVFDQEHPLWLJDWHG x 3ROLF\&66
(QIRUFHUHTXLUHPHQWVRIWKH$OTXLVW3ULROR6SHFLDO6WXGLHV=RQHV$FW VKRXOGDQ\IDXOWWUDFHVLQ6DQ&DUORVEHGLVFRYHUHGDQGSURYHWREHDFWLYHRUSRWHQWLDOO\ DFWLYH
x 3ROLF\&66
&RQWLQXHWRLQFRUSRUDWHVHLVPLFULVNDQDO\VLVLQWRWKH&LW\ VRQJRLQJ
EXLOGLQJLQVSHFWLRQSURJUDPWKURXJKWKRURXJKUHYLHZRISURMHFWVE\SODQFKHFNDQGILHOG LQVSHFWLRQV
x 3ROLF\&66

&RQWLQXHWRHQVXUHWKDWVHLVPLFKD]DUGVDUHPLWLJDWHGWRWKHJUHDWHVW H[WHQWSRVVLEOHIRUFULWLFDOSXEOLFIDFLOLWLHVLQIUDVWUXFWXUHDQGHPHUJHQF\VHUYLFHV &LW\RI6DQ&DUORV0XQLFLSDO&RGH
7KH&LW\RI6DQ&DUORV0XQLFLSDO&RGHFRQWDLQVWKHIROORZLQJVHFWLRQVZKLFKPD\EHDSSOLFDEOH WRWKHSURSRVHGSURMHFW

*UDGLQJ²6HDVRQDOSURKLELWLRQV
*UDGLQJVKDOOEHSURKLELWHGGXULQJWKHUDLQ\VHDVRQDVGHILQHGLQWKH0XQLFLSDO5HJLRQDO3HUPLW XQOHVVWKH&LW\(QJLQHHURUKLVKHUGHVLJQHHILQGVWKDWWKHODQGGLVWXUEDQFHLVUHODWLYHO\PLQRU DQGWKDWHURVLRQFDQEHHDVLO\FRQWUROOHGRULVDQHFHVVDU\DQGLQWHJUDOSDUWRIDQLQWHULPSODQ IRUSUHYLRXVO\LQLWLDWHGSURMHFWSKDVHVRULVQHFHVVDU\WRSUHYHQWDQLPPLQHQWWKUHDWWRSXEOLF VDIHW\DVGHWHUPLQHGE\WKH&LW\(QJLQHHURUKLVKHUGHVLJQHH *UDGLQJ²'UDLQDJHUHVWULFWLRQV
1RJUDGLQJVKDOOEHFRQGXFWHGLQVXFKDPDQQHUDVWRDOWHUWKHHVWDEOLVKHGJUDGLHQWRIQDWXUDO GUDLQDJHFKDQQHOVLQVXFKDPDQQHUDVWRFDXVHH[FHVVLYHHURVLRQRUIORRGLQJ
*UDGLQJ²6ORSHVDQGEDQNV
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
6DQ&DUORV

'LVFXVVLRQ
&RQVLVWHQWZLWKWKH&DOLIRUQLD6XSUHPH&RXUWGHFLVLRQLQ&DOLIRUQLD%XLOGLQJ,QGXVWU\ $VVRFLDWLRQY%D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW &DOWK

WKHLPSDFW
GLVFXVVLRQSUHVHQWHGEHORZIRFXVHVRQWKHSURMHFW¶VHIIHFWRQJHRORJ\DQGVRLOVUDWKHUWKDQWKH HIIHFWRIJHRORJLFKD]DUGVDQGVLWHFRQGLWLRQVXSRQWKHSURSRVHGSURMHFW7KHSURMHFWLV HYDOXDWHGWRGHWHUPLQHZKHWKHULWZRXOGFUHDWHRUH[DFHUEDWHVRLORUJHRORJLFFRQGLWLRQV LGHQWLILHGLQHDFKRIWKHDERYHVLJQLILFDQFHWKUHVKROGFULWHULD :RXOGWKHSURMHFW

8.a
November 14, 2022

Packet Pg. 307

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
D
'LUHFWO\RULQGLUHFWO\FDXVHSRWHQWLDOVXEVWDQWLDODGYHUVHH IIHFWVLQFOXGLQJWKH ULVNRIORVVLQMXU\RUGHDWKLQYROYLQJ

L
5XSWXUH RI D NQRZQ HDUWKTXDNH IDXOW DV GHOLQHDWHG RQ WKH PR VW UHFHQW $OTXLVW3ULROR (DUWKTXDNH )DXOW=RQLQJ 0DS LVVXHG E\ WKH 6WDWH*HRORJLVW IRUWKHDUHDRUEDVHGRQRWKHUVLJQLILFDQWHYLGHQFHRIDNQRZQIDXOW" 1R,PSDFW7KH$OTXLVW3ULROR(DUWKTXDNH)DXOW=RQLQJ$FWUHJXODWHVGHYHORSPHQWLQ&DOLIRUQLD QHDUNQRZQDFWLYHIDXOWVGXHWRKD]DUGVDVVRFLDWHGZLWKVXUIDFHIDXOWUXSWXUHV7KHUHDUHQR NQRZQDFWLYHIDXOWVWKDWWUDYHUVHWKHSURMHFWVLWHDQGWKHVLWHLVQRWZLWKLQDQ$OTXLVW3ULROR]RQH

/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF 1RLPSDFWZRXOGRFFXU
LL
6WURQJVHLVPLFJURXQGVKDNLQJ"
/HVV7KDQ6LJQLILFDQW,PSDFW7KHSURMHFWVLWHLVORFDWHGLQWKH6DQ)UDQFLVFR%D\$UHDZKLFK LVFRQVLGHUHGRQHRIWKHPRVWVHLVPLFDOO\DFWLYHUHJLRQVLQWKH8QLWHG6WDWHV6LJQLILFDQW HDUWKTXDNHVKDYHRFFXUUHGLQWKLVDUHDDQGVWURQJWRYLROHQWJURXQGVKDNLQJLQWKHSURMHFWDUHD FDQEHH[SHFWHGDVDUHVXOWRIDPDMRUHDUWKTXDNHRQRQHRIWKHIDXOWVLQWKHUHJLRQ7KH :RUNLQJ*URXSRQ&DOLIRUQLD(DUWKTXDNH3UREDELOLWLHVHVWLPDWHGWKDWWKH\HDUSUREDELOLW\RID PDJQLWXGHRUJUHDWHUHDUWKTXDNHVWULNLQJWKH6DQ)UDQFLVFR%D\DUHDZDVSHUFHQW

:*&(3

7KHSURMHFWZRXOGQRWFUHDWHSRWHQWLDOIRURUH[DFHUEDWHH[LVWLQJFRQGLWLRQVUHODWHGWRVHLVPLF JURXQGVKDNLQJ7KHSURSRVHGSURMHFWZRXOGEHGHVLJQHGDQGFRQVWUXFWHGLQDFFRUGDQFHZLWK WKHFXUUHQW&DOLIRUQLD%XLOGLQJ&RGHUHTXLUHPHQWVIRUVHLVPLFVDIHW\7KLVLPSDFWZRXOGEHOHVV WKDQVLJQLILFDQW
LLL
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¶VSODQQHGEDVHPHQWIRRWSULQW /DQJDQ
(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
7KHJHRWHFKQLFDOUHSRUWLQFOXGHV
UHFRPPHQGDWLRQVIRUWKHIRXQGDWLRQGHVLJQLQFOXGLQJVXSSRUWLQJWKHSURSRVHGEXLOGLQJRQD PDWXVLQJDV\VWHPRIPLFURSLOHVRUWLHGRZQVIRUVXSSRUWDQGGHVLJQLQJEDVHPHQWZDOOVWR UHVLVWODWHUDOSUHVVXUHV,IQHHGHGWKHOLTXHIDFWLRQSRWHQWLDOFDQEHPLWLJDWHGXVLQJJURXQG LPSURYHPHQWPHDVXUHV7KHSURMHFWZRXOGDOVRLQVWDOODVKRULQJDQGGHZDWHULQJV\VWHPVRWKDW WKHJURXQGZDWHUOHYHOZRXOGQRWVXEVWDQWLDOO\ORZHURXWVLGHRIH[FDYDWLRQ7KHVHUHSRUW UHFRPPHQGDWLRQVWKDWWKHSURMHFWZRXOGIROORZDGGUHVVSRWHQWLDOJURXQGIDLOXUHDQGOLTXHIDFWLRQ LVVXHV
7KHJHRWHFKQLFDOUHSRUWDOVRORRNHGDWWKHVORSHVWDELOLW\RIWKHDGMDFHQWFUHHNGUDLQDJHFKDQQHO XQGHUERWKVWDWLFDQGVHLVPLFFRQGLWLRQV
6WDWLF6WDELOLW\RI'UDLQDJH&KDQQHO
7KHUHVXOWVRIWKHVWDWLFVORSHVWDELOLW\DQDO\VHVLQGLFDWHWKDWWKHH[LVWLQJILOOVORSHVRIWKH GUDLQDJHFKDQQHOKDYHDIDFWRURIVDIHW\RIDERXWDQGDUHPDUJLQDOO\VWDEOH%DVHGRQWKH
'UDZLQJGRZQZDWHURXWVLGHWKHH[FDYDWLRQLQFUHDVHVWKHRYHUEXUGHQORDGRQDQGUHGXFHVWKH EXR\DQF\RIVRLOHVSHFLDOO\WKH%D\0XGOD\HUDQGFRXOGFDXVHUHODWLYHO\VLJQLILFDQWVHWWOHPHQWRIWKH VXUURXQGLQJJURXQG

8.a
November 14, 2022

Packet Pg. 308

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
UHVXOWVRIWKHDQDO\VHVREVHUYDWLRQVDQGSUHYLRXVSHUIRUPDQFHRIWKLVVORSH/DQJDQ (QJLQHHULQJFRQFOXGHGWKLVVORSHLVPDUJLQDOO\VWDEOHXQGHUVWDWLFFRQGLWLRQV+RZHYHUWKH VORSHVFRXOGEHVXEMHFWWRIDLOXUHXQGHUHTXLSPHQWDQGRWKHUFRQVWUXFWLRQORDGLQJZLWKRXW LPSOHPHQWLQJJURXQGLPSURYHPHQWRURWKHUVORSHVWDELOL]DWLRQPHDVXUHV WKH*HRWHFK5HSRUW
SURYLGHVWKDWWKHVHFRQGLWLRQVVKRXOGEHHYDOXDWHGRQDFDVHE\FDVHEDVLVRQFHFRQVWUXFWLRQ ORJLVWLFVDUHEHWWHUXQGHUVWRRG
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
6HLVPLF6ORSH6WDELOLW\RI'UDLQDJH&KDQQHO
$SVHXGRVWDWLFDSSURDFKZDVXVHGWRHYDOXDWHWKHVHLVPLFVORSHVWDELOLW\DQGGHIRUPDWLRQ EHKDYLRURIWKHGUDLQDJHFKDQQHOVORSH7KHPRGHOLQJFRPSXWHGIDFWRUVRIVDIHW\RIDERXW IRUSRWHQWLDOVOLSVXUIDFHVDWERWK6HFWLRQV¶DQG¶IRUWKHGHVLJQHDUWKTXDNHOHYHORI VKDNLQJZKLFKLQGLFDWHVWKHVHVORSHVPD\PRYHGHIRUPGXULQJDODUJHHDUWKTXDNH &RQVHTXHQWO\WKHVHVORSHVDUHH[SHFWHGWRH[SHULHQFHSHUPDQHQWGLVSODFHPHQWVXQGHUWKHVH OHYHOVRIJURXQGVKDNLQJ
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
7KHJHRWHFKQLFDOUHSRUWHVWLPDWHGPHGLDQVORSHGLVSODFHPHQWVIRUWKHFULWLFDOIDLOXUHVXUIDFHV RQWKHRUGHURIVHYHUDOIHHW
DSSUR[LPDWHO\WRLQFKHV
GXULQJDGHVLJQHDUWKTXDNHOHYHO
HYHQW
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
'HVLJQDQG&RQVWUXFWLRQ&RQVLGHUDWLRQV
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¶VUHVSRQVLELOLW\WR PDLQWDLQVORSHVWDELOLW\GXULQJFRQVWUXFWLRQ/DQJDQVKRXOGHYDOXDWHWKLVWHPSRUDU\FRQGLWLRQ RQFHWKHH[DFWORFDWLRQRIWKHVKRULQJZDOOUHODWLYHWRWKHFUHVWRIWKHVORSHDVZHOODVWKHW\SH DQGZHLJKWRIHTXLSPHQWWREHXVHGLVNQRZQ$Q\VKRULQJZRUNQHHGHGIRUWKHGUDLQDJH FKDQQHOVWDELOLW\PD\UHTXLUHDQHQFURDFKPHQWSHUPLWIURP&DOWUDQV &RQFOXVLRQ
$OWKRXJKWKHSURMHFWVSHFLILFJHRWHFKQLFDOUHSRUWLQGLFDWHGWKHUHZDVWKHSRWHQWLDOIRUVRLO OLTXHIDFWLRQWKHSURMHFWZRXOGDGKHUHWRDOOUHFRPPHQGDWLRQVFRQWDLQHGLQWKHVLWHVSHFLILF JHRWHFKQLFDODQDO\VLVLQDGGLWLRQWRUHOHYDQW&DOLIRUQLD%XLOGLQJ&RGHDQG$PHULFDQ&RQFUHWH ,QVWLWXWH
$&,
GHVLJQFRGH7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW LY
/DQGVOLGHV"
1R,PSDFW7KHSURMHFWVLWHDQGVXUURXQGLQJDUHDDUHUHODWLYHO\OHYHODQGDUHQRWVXEMHFWWR ODQGVOLGHKD]DUGV7KHUHIRUHWKHSURSRVHGSURMHFWZRXOGKDYHQRLPSDFWVUHODWHGWRODQGVOLGHV 1RLPSDFWZRXOGRFFXU

8.a
November 14, 2022

Packet Pg. 309

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
E
5HVXOWLQVLJQLILFDQWVRLOHURVLRQRUWKHORVVRIWRSVRLO" /HVV7KDQ6LJQLILFDQW,PSDFW7KHSURMHFWZRXOGQRWFDXVHHURVLRQRUORVVRIWRSVRLOLQWKH ORQJWHUPEHFDXVHWKHSURMHFWVLWHZRXOGEHFRYHUHGZLWKWKHQHZEXLOGLQJSDYHGDUHDVDQG ODQGVFDSLQJIROORZLQJFRQVWUXFWLRQDQGQREDUHVRLOVZRXOGEHSUHVHQW+RZHYHUSURMHFW FRQVWUXFWLRQZRXOGUHTXLUHJUDGLQJRUVRLOH[SRVXUHWKDWFRXOGUHVXOWLQWHPSRUDU\HURVLRQDQGRU ORVVRIWRSVRLOLIQRWFRQWUROOHG
7KHSURMHFWZRXOGUHTXLUHWKHSUHSDUDWLRQRID6WRUP:DWHU3ROOXWLRQ3UHYHQWLRQ3ODQ 6:333

WRSUHYHQWVWRUPZDWHUSROOXWLRQGXULQJFRQVWUXFWLRQ$IWHUFRQVWUXFWLRQWKHSURMHFWVLWHZRXOGEH LPSURYHG
LHUHSDYHGEXWDOVRIHDWXUHPRUHSHUPHDEOHVSDFHIRUJURXQGZDWHUILOWUDWLRQ DQG
ZRXOGQRWOHDYHVXUIDFHVRLOVVXVFHSWLEOHWRHURVLRQRUORVV,PSOHPHQWDWLRQRIWKHVLWHVSHFLILF 6:333GXULQJFRQVWUXFWLRQDQGUHVWRUDWLRQRIWKHVLWHSRVWFRQVWUXFWLRQZRXOGSUHYHQW VLJQLILFDQWVRLOHURVLRQRUORVVRIWRSVRLO7KHLPSDFWLVFRQVLGHUHGOHVVWKDQVLJQLILFDQW,Q DGGLWLRQWKHSURMHFWZRXOGFRPSO\ZLWK6DQ&DUORV0XQLFLSDO&RGH6HFWLRQV

*UDGLQJ²6HDVRQDOSURKLELWLRQV

*UDGLQJ²'UDLQDJHUHVWULFWLRQV
DQG6HFWLRQ

*UDGLQJ²6ORSHVDQG%DQNV

&RPSOLDQFHZLWKWKHVHSODQVDQGUHJXODWLRQVZRXOGSUHYHQWHURVLRQDQGORVVRIWRSVRLOGXULQJ FRQVWUXFWLRQDFWLYLWLHV7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW F
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

WRZDUGDIUHHIDFHDQGFDXVHGE\VHLVPLFVKDNLQJ7KHVHODWHUDOJURXQGPRYHPHQWVDUHRIWHQ DVVRFLDWHGZLWKDZHDNHQLQJRUIDLOXUHRIDQHPEDQNPHQWRUVRLOPDVVRYHUO\LQJDFRQWLQXRXV OD\HURIOLTXHILHGVDQGRUZHDNVRLOV7KHVRLOVSUHVHQWLQWKHSURMHFWVLWHZKLFKDUHJHQHUDOO\ FOD\H\RUVLOW\VDQGVZLWKJUDYHOKDYHGLIIHUHQWFKDUDFWHULVWLFVWKDQWKHVRLOVDVVRFLDWHGZLWK VLJQLILFDQWODWHUDOVSUHDGLQJZKLFKDUHVDWXUDWHGFRKHVLRQOHVVVDQG\VHGLPHQWV /DQJDQ
(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
7KHSURMHFWZRXOGDGKHUHWRDOO
UHFRPPHQGDWLRQVFRQWDLQHGLQWKHVLWHVSHFLILFJHRWHFKQLFDODQDO\VLVDQGUHOHYDQWSRUWLRQVRI WKH$&,GHVLJQFRGH7KHUHZRXOGEHDORZSRWHQWLDOIRUOLTXHIDFWLRQDQGODWHUDOVSUHDGLQJDIWHU IROORZLQJWKHVHUHFRPPHQGDWLRQVDQGGHVLJQFRGHV
6XEVLGHQFHLVWKHVLQNLQJRIWKH(DUWK
VVXUIDFHLQUHVSRQVHWRJHRORJLFRUPDQLQGXFHGFDXVHV 7KHSULQFLSDOFDXVHVDUHPLQLQJZLWKGUDZDORIJURXQGZDWHURURLONDUVWIRUPDWLRQVR[LGDWLRQRI RUJDQLFVRLOVDQGWKDZLQJRISHUPDIURVW7KHSURSRVHGSURMHFWZRXOGLQYROYHJURXQGZDWHU H[WUDFWLRQLQRUGHUWRFRQVWUXFWWKHERWWRPWZROHYHOVRIWKHSDUNLQJJDUDJH KRZHYHUWKH
JHRWHFKQLFDOUHSRUWSURYLGHVUHFRPPHQGDWLRQVVRWKDWJURXQGZDWHUOHYHOVRXWVLGHRIWKH H[DFWLRQDUHDGRQRWORZHU
LHLQFUHDVLQJWKHSRWHQWLDORIVXEVLGHQFHVHWWOHPHQW 7KHUHIRUH
WKHSURMHFWLVQRWH[SHFWHGWRKDYHVLJQLILFDQWLPSDFWVUHODWHGWRVXEVLGHQFH $VVWDWHGSUHYLRXVO\WKHSURMHFWVLWHKDVWKHSRWHQWLDOIRUOLTXHIDFWLRQ /DQJDQ(QJLQHHULQJDQG
(QYLURQPHQWDO6HUYLFHV,QF
:LWKWKHSODQQHGH[FDYDWLRQZKLFKZLOOUHPRYHVRPHRI WKHOLTXHILDEOHPDWHULDODQGWKHXVHRIDPDWIRXQGDWLRQV\VWHPWKHSURMHFWZRXOGQRWFUHDWH SRWHQWLDOIRURUH[DFHUEDWHH[LVWLQJFRQGLWLRQVUHODWHGWROLTXHIDFWLRQ

8.a
November 14, 2022

Packet Pg. 310

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
5HFRPPHQGDWLRQVIRU'HZDWHULQJ6KRULQJ8QGHUSLQQLQJDQG([FDYDWLRQ 7KHJHRWHFKQLFDOUHSRUWFRQWDLQVUHFRPPHQGDWLRQVIRUGHZDWHULQJVKRULQJXQGHUSLQQLQJDQG H[FDYDWLRQGXULQJFRQVWUXFWLRQ
'HZDWHULQJ
%DVHGRQWKHJURXQGZDWHUOHYHOVHQFRXQWHUHGGXULQJWKHLQYHVWLJDWLRQDQGUHYLHZRIKLVWRULF JURXQGZDWHUOHYHOVLQWKHYLFLQLW\WKHJHRWHFKQLFDOUHSRUWFRQFOXGHGDGHVLJQJURXQGZDWHUOHYHO RI(OHYDWLRQIHHWLVDSSURSULDWHIRUWKLVSURMHFW7RFRQVWUXFWWKHSODQQHGEDVHPHQWWKH JURXQGZDWHUZLOOQHHGWREHWHPSRUDULO\ORZHUHGWRDGHSWKRIDWOHDVWWKUHHIHHWEHORZWKH ERWWRPRIWKHSODQQHGH[FDYDWLRQ7KHUHDUHVRPHLQWHUPLWWHQWVDQG\OD\HUVZLWKLQWKHSURSRVHG GHSWKRIH[FDYDWLRQWKDWPD\DFWDVDFRQGXLWIRUZDWHUWRIORZLQWRWKHH[FDYDWLRQIURPWKH VLGHV
%DVHGRQ/DQJDQ(QJLQHHULQJH[SHULHQFHWKH\FRQVLGHUGHZDWHULQJRIWKHH[FDYDWLRQWREH FULWLFDOWRWKHSHUIRUPDQFHRIWKHVKRULQJDQGPDLQWDLQLQJDVWDEOHVXEJUDGHIRUFRQVWUXFWLRQRI WKHIRXQGDWLRQ$ZHOOGHVLJQHGLQVWDOOHGDQGRSHUDWHGGHZDWHULQJV\VWHPLVWKHUHIRUH HVVHQWLDO'XULQJH[FDYDWLRQWKHJURXQGZDWHUWDEOHZLWKLQWKHVLWHVKRXOGEHGUDZQGRZQWRDW OHDVWWKUHHIHHWEHORZWKHERWWRPRIWKHH[FDYDWLRQZLWKLQWKHH[FDYDWLRQOLPLWV7KHGHZDWHUHG OHYHOVKRXOGEHPDLQWDLQHGDWWKDWGHSWKXQWLOVXIILFLHQWEXLOGLQJZHLJKWLVDYDLODEOHWRUHVLVWWKH K\GURVWDWLFXSOLIWSUHVVXUHRIWKHGHVLJQJURXQGZDWHUOHYHO (OHYDWLRQIHHW
6SHFLDOFDUH
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
ZDOO
ZLWKVXIILFLHQWHPEHGPHQW/DQJDQ(QJLQHHULQJDQWLFLSDWHVRQO\GHZDWHULQJZLWKLQWKHVLWH ZLOOEHUHTXLUHGDQGWKHUHVKRXOGEHQRVLJQLILFDQWORZHULQJRIWKHJURXQGZDWHUOHYHORXWVLGHRI WKHH[FDYDWLRQ,QWKLVFDVHVLJQLILFDQWVHWWOHPHQWRIWKHVXUURXQGLQJLPSURYHPHQWVDVVRFLDWHG ZLWKWKHUHTXLUHGGHZDWHULQJDUHQRWDQWLFLSDWHG
9DULDEOHVWKDWLQIOXHQFHWKHSHUIRUPDQFHRIWKHGHZDWHULQJV\VWHPDQGWKHTXDQWLW\RIZDWHU SURGXFHGLQFOXGHWKHQXPEHURIZHOOVWKHGHSWKDQGSRVLWLRQLQJRIWKHZHOOVWKHLQWHUYDORYHU ZKLFKHDFKZHOOLVVFUHHQHGDQGWKHUDWHDWZKLFKHDFKZHOOLVSXPSHG'LIIHUHQWFRPELQDWLRQV RIWKHVHYDULDEOHVFDQEHXVHGWRVXFFHVVIXOO\GHZDWHUWKHVLWH7KHVLWHGHZDWHULQJVKRXOGEH GHVLJQHGDQGLPSOHPHQWHGE\DQH[SHULHQFHGGHZDWHULQJFRQWUDFWRU7KHVKRULQJDQG GHZDWHULQJGHVLJQVKRXOGEHGRQHLQFRQFHUWZLWKRQHDQRWKHU 6KRULQJ&RQVLGHUDWLRQV
$QH[FDYDWLRQEHWZHHQWRIHHWGHHSZLOOEHUHTXLUHGWRDFFRPPRGDWHWKHSODQQHGEHORZ JUDGHOHYHOSDUNLQJVWUXFWXUH7KHDGMDFHQWJURXQGDQGLPSURYHPHQWVLQFOXGLQJWKH,Q12XW %XUJHUEXLOGLQJURDGZD\VFKDQQHOL]HGFUHHNDQGXWLOLWLHVVXUURXQGLQJWKHVLWHVKRXOGEH UHWDLQHGE\WHPSRUDU\VKRULQJXQWLOWKHSHUPDQHQWEDVHPHQWZDOOVKDYHEHHQFRQVWUXFWHG )RUWKHSODQQHGH[FDYDWLRQGHSWKWKHVKRULQJV\VWHPPD\UHTXLUHWLHEDFNVRULQWHUQDOEUDFLQJ IRUODWHUDOVXSSRUW7KHJHRWHFKQLFDOUHSRUWUHFRPPHQGVWKDWDVKRULQJZDOOFXWRIIV\VWHP

637&RUVRLOPL[HGZDOO
VKRXOGEHXVHGWRUHGXFHPRYHPHQWV7KHVKRULQJZDOOVKRXOG DFKLHYHFXWRIIH[WHQGLQJZLWKLQWKHFOD\H\PDWHULDOEHQHDWKWKHVDQGH[SRVHGDWWKHSODQQHG VXEJUDGHWRFXWRIIJURXQGZDWHULQILOWUDWLRQDQGUHGXFHWKHSRWHQWLDOIRUGHZDWHULQJGUDZGRZQ

8.a
November 14, 2022

Packet Pg. 311

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
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
(QYLURQPHQWDO6HUYLFHV,QF

8QGHUSLQQLQJ
:KHUHWKHSURSRVHGH[FDYDWLRQH[WHQGVGHHSHUWKDQWKHIRXQGDWLRQVRIDGMDFHQWEXLOGLQJV

H[LVWLQJ,Q12XW%XUJHUEXLOGLQJDQGGULYHWKUX
RUZKHUHDGMDFHQWIRXQGDWLRQVDUHDERYHDQ
LPDJLQDU\

KRUL]RQWDOWRYHUWLFDO
OLQHH[WHQGLQJXSIURPWKHEDVHRIWKHH[FDYDWLRQWKH VKRULQJVKRXOGEHGHVLJQHGWRVXSSRUWWKHVXUFKDUJHSUHVVXUHVIURPWKHIRXQGDWLRQVRU XQGHUSLQQLQJVKRXOGEHXVHG7KHPRVWSUDFWLFDODSSURDFKIRUXQGHUSLQQLQJDGMDFHQWVWUXFWXUHV LQFOXGHVFRQYHQWLRQDOVODQWGULOOHGVROGLHUSLOHV
VROGLHUSLOHVLQLWLDOO\GULOOHGDWDVOLJKWEDWWHUDQG WKHQWKHXSSHUSDUWRIWKHSLOHLVUHDPHGWRDOORZIRUWKHYHUWLFDOSODFHPHQWRIWKHSLOHEHQHDWK WKHH[LVWLQJIRXQGDWLRQ

/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF
&RQFOXVLRQ
7KHSURSRVHGSURMHFWVKDOOEHGHVLJQHGDQGFRQVWUXFWHGLQDFFRUGDQFHZLWKWKHFXUUHQW &DOLIRUQLD%XLOGLQJ&RGHDQGWKHVLWHVSHFLILFJHRWHFKQLFDOUHSRUW7KLVLPSDFWZRXOGEHOHVV WKDQVLJQLILFDQW
G
%HORFDWHGRQH[SDQVLYHVRLODVGHILQHGLQ7DEOH%RI WKH8QLIRUP %XLOGLQJ&RGH

FUHDWLQJVXEVWDQWLDOGLUHFWRULQGLUHFWULVNVWROLIHRU SURSHUW\"
1R,PSDFW7KHSURMHFWVLWHLVQRWLQDQDUHDZLWKH[SDQVLYHVRLOVDFFRUGLQJWR)LJXUH ([SDQVLYH6RLOVRIWKH6DQ&DUORV*HQHUDO3ODQ
&LW\RI6DQ&DUORV

1RLPSDFWZRXOG
RFFXU
H
+DYHVRLOVLQFDSDEOHRIDGHTXDWHO\VXSSRUWLQJWKHXVHRIVHS WLFWDQNVRU DOWHUQDWLYHZDVWHZDWHUGLVSRVDOV\VWHPVZKHUHVHZHUVDUHQRWDYDLODEOHIRUWKH GLVSRVDORIZDVWHZDWHU"
1R,PSDFW7KHSURSRVHGSURMHFWZRXOGQRWUHTXLUHWKHFRQVWUXFWLRQRUXVHRIVHSWLFWDQNVRU DOWHUQDWLYHZDVWHZDWHUGLVSRVDOV\VWHPV:DVWHZDWHUJHQHUDWHGE\WKHSURSRVHGSURMHFWZRXOG EHFRQYH\HGWRWKHH[LVWLQJPXQLFLSDOVDQLWDU\VHZHUV\VWHPWKDWLVPDLQWDLQHGDQGRSHUDWHGE\ WKH&LW\RI6DQ&DUORV3XEOLF:RUNV'HSDUWPHQW7KHUHIRUHWKHSURSRVHGSURMHFWZRXOGQRW KDYHWKHSRWHQWLDOWRUHVXOWLQLPSDFWVUHODWHGWRVHSWLFWDQNVRUDOWHUQDWLYHZDVWHZDWHUGLVSRVDO V\VWHPV1RLPSDFWZRXOGRFFXU
I
'LUHFWO\RULQGLUHFWO\GHVWUR\DXQLTXHSDOHRQWRORJLFDOUHVR XUFHRUVLWHRU XQLTXHJHRORJLFIHDWXUH"
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

8.a
November 14, 2022

Packet Pg. 312

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
,PSDFW*(2
3URMHFWGHPROLWLRQDQGFRQVWUXFWLRQFRXOGXQHDUWKSDOHRQWRORJLFDO UHVRXUFHVLQFOXGLQJIRVVLOV
0LWLJDWLRQ0HDVXUH*(2
3URWHFWLRQRI3DOHRQWRORJLFDO5HVRXUFHV,I
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
(IIHFWLYHQHVV
7KLVPHDVXUHZRXOGUHGXFHLPSDFWVWRSDOHRQWRORJLFDOUHVRXUFHVWR OHVVWKDQVLJQLILFDQW
,PSOHPHQWDWLRQ
7KH$SSOLFDQWVKDOOLQFOXGHWKHVHPHDVXUHVRQDOODSSURSULDWHELG FRQWUDFWDQGHQJLQHHULQJDQGVLWHSODQ
HJEXLOGLQJJUDGLQJDQG
LPSURYHPHQWSODQV
GRFXPHQWV7KH$SSOLFDQWDQGRULWVFRQWUDFWRU
V

VKDOOLPSOHPHQWWKLVPHDVXUHLQWKHHYHQWDQ\SDOHRQWRORJLFDO UHVRXUFHVDUHGLVFRYHUHG
7LPLQJ
'XULQJDOOHDUWKPRYLQJSKDVHVRISURMHFWGHPROLWLRQDQGFRQVWUXFWLRQ 0RQLWRULQJ
7KH&LW\VKDOOUHYLHZDOODSSURSULDWHELGFRQWUDFWDQGHQJLQHHULQJ DQGVLWHSODQGRFXPHQWVIRULQFOXVLRQRISDOHRQWRORJLFDOPLWLJDWLRQ,I SDOHRQWRORJLFDOUHVRXUFHVDUHXQFRYHUHGDUHSRUWVKDOOEHSUHSDUHG E\WKHTXDOLILHGSDOHRQWRORJLVWGHVFULELQJWKHILQGDQGLWVGHSRVLWLRQ 5HIHUHQFHV
&LW\RI6DQ&DUORV
6DQ&DUORV*HQHUDO3ODQ*HQHUDO3ODQ$GRSWHG2FWREHU

BBBBBB6DQ&DUORV0XQLFLSDO&RGH&KDSWHU*UDGLQJDQG([FDYDWLRQV$FFHVVHG )HEUXDU\
KWWSV
ZZZFRGHSXEOLVKLQJFRP&$6DQ&DUORV6DQ&DUORV6DQ&DUORVKWPO
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO6HUYLFHV,QF³*HRWHFKQLFDO,QYHVWLJDWLRQ ,QGXVWULDO5RDG6DQ&DUORV&DOLIRUQLD´
8QLWHG6WDWHV*HRORJLFDO6XUYH\
86*6

*HRORJLF0DSRIWKH3DOR$OWR4XDGUDQJOHDQG
3DUWRIWKH5HGZRRG3RLQW¶4XDGUDQJOH6DQ0DWHRDQG6DQWD&ODUD&RXQWLHV &DOLIRUQLD%\(DUO+3DPSH\DQ0LVFHOODQHRXV,QYHVWLJDWLRQ6HULHV0DS, :RUNLQJ*URXSRQ&DOLIRUQLD(DUWKTXDNH3UREDELOLWLHV
:*&(3
³8&(5)
$1HZ
(DUWKTXDNH)RUHFDVWIRU&DOLIRUQLD¶V&RPSOH[)DXOW6\VWHP´7KH UG8QLIRUP&DOLIRUQLD
5XSWXUH)RUHFDVW
8&(5)
0DUFK
$FFHVVHG'HFHPEHUDW

KWWS
ZZZZJFHSRUJ

8.a
November 14, 2022

Packet Pg. 313

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
*5((1+286(*$6(0,66,216

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQW
ZLWK0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
*HQHUDWHJUHHQKRXVHJDVHPLVVLRQVHLWKHU
GLUHFWO\RULQGLUHFWO\WKDWPD\KDYHDVLJQLILFDQW
LPSDFWRQWKHHQYLURQPHQW"

E
&RQIOLFWZLWKDQDSSOLFDEOHSROLF\RU
UHJXODWLRQDGRSWHGIRUWKHSXUSRVHRIUHGXFLQJ
WKHHPLVVLRQVRIJUHHQKRXVHJDVHV"

(QYLURQPHQWDO6HWWLQJ
*DVHVWKDWWUDSKHDWLQWKHDWPRVSKHUHDQGDIIHFWUHJXODWLRQRIWKH(DUWK¶VWHPSHUDWXUHDUH NQRZQDVJUHHQKRXVHJDVHV
*+*V
0DQ\FKHPLFDOFRPSRXQGVIRXQGLQWKHHDUWK¶V
DWPRVSKHUHH[KLELWWKH*+*SURSHUW\*+*VDOORZVXQOLJKWWRHQWHUWKHDWPRVSKHUHIUHHO\ :KHQVXQOLJKWVWULNHVWKHHDUWK¶VVXUIDFHLWLVHLWKHUDEVRUEHGRUUHIOHFWHGEDFNWRZDUGVSDFH (DUWKWKDWKDVDEVRUEHGVXQOLJKWZDUPVXSDQGHPLWVLQIUDUHGUDGLDWLRQWRZDUGVSDFH*+*V DEVRUEWKLVLQIUDUHGUDGLDWLRQDQG³WUDS´WKHHQHUJ\LQWKHHDUWK¶VDWPRVSKHUH(QWUDSPHQWRIWRR PXFKLQIUDUHGUDGLDWLRQSURGXFHVDQHIIHFWFRPPRQO\UHIHUUHGWRDV³*OREDO:DUPLQJ´DOWKRXJK WKHWHUP³*OREDO&OLPDWH&KDQJH´LVSUHIHUUHGEHFDXVHHIIHFWVDUHQRWMXVWOLPLWHGWRKLJKHU JOREDOWHPSHUDWXUHV
*+*VWKDWFRQWULEXWHWRFOLPDWHUHJXODWLRQDUHDGLIIHUHQWW\SHRISROOXWDQWWKDQFULWHULDRU KD]DUGRXVDLUSROOXWDQWVEHFDXVHFOLPDWHUHJXODWLRQLVJOREDOLQVFDOHERWKLQWHUPVRIFDXVHV DQGHIIHFWV6RPH*+*VDUHHPLWWHGWRWKHDWPRVSKHUHQDWXUDOO\E\ELRORJLFDODQGJHRORJLFDO SURFHVVHVVXFKDVHYDSRUDWLRQ
ZDWHUYDSRU
DHURELFUHVSLUDWLRQ
FDUERQGLR[LGH
DQGRII
JDVVLQJIURPORZR[\JHQHQYLURQPHQWVVXFKDVVZDPSVRUH[SRVHGSHUPDIURVW

PHWKDQH

KRZHYHU*+*HPLVVLRQVIURPKXPDQDFWLYLWLHVVXFKDVIXHOFRPEXVWLRQ HJFDUERQGLR[LGH

DQGUHIULJHUDQWVXVH
HJK\GURIOXRURFDUERQV
VLJQLILFDQWO\FRQWULEXWHWRRYHUDOO*+*
FRQFHQWUDWLRQVLQWKHDWPRVSKHUHFOLPDWHUHJXODWLRQDQGJOREDOFOLPDWHFKDQJH +XPDQSURGXFWLRQRI*+*KDVLQFUHDVHGVWHDGLO\VLQFHSUHLQGXVWULDOWLPHV DSSUR[LPDWHO\SUH

DQGDWPRVSKHULFFDUERQGLR[LGHFRQFHQWUDWLRQVKDYHLQFUHDVHGIURPDSUHLQGXVWULDO YDOXHRISDUWVSHUPLOOLRQ
SSP
LQWKHHDUO\¶VWRSSPLQ'HFHPEHU
12$$

7KHHIIHFWVRILQFUHDVHG*+*FRQFHQWUDWLRQVLQWKHDWPRVSKHUHLQFOXGHLQFUHDVLQJ WHPSHUDWXUHVKLIWVLQSUHFLSLWDWLRQSDWWHUQVDQGDPRXQWVUHGXFHGLFHDQGVQRZFRYHUVHDOHYHO ULVHDQGDFLGLILFDWLRQRIRFHDQV7KHVHHIIHFWVLQWXUQZLOOLPSDFWIRRGDQGZDWHUVXSSOLHV LQIUDVWUXFWXUHHFRV\VWHPVDQGRYHUDOOSXEOLFKHDOWKDQGZHOIDUH 7KH

8QLWHG1DWLRQV¶.\RWR3URWRFROLQWHUQDWLRQDOWUHDW\VHWWDUJHWVIRUUHGXFWLRQVLQ HPLVVLRQVRIIRXUVSHFLILF*+*V±FDUERQGLR[LGHPHWKDQHQLWURXVR[LGHDQGVXOIXU KH[DIOXRULGH±DQGWZRJURXSVRIJDVHV±K\GURIOXRURFDUERQVDQGSHUIOXRURFDUERQV7KHVH *+*VDUHWKHSULPDU\*+*VHPLWWHGLQWRWKHDWPRVSKHUHE\KXPDQDFWLYLWLHV7KHVL[FRPPRQ *+*VDUHGHVFULEHGEHORZ
&DUERQ'LR[LGH
&2
&2LVUHOHDVHGWRWKHDWPRVSKHUHZKHQIRVVLOIXHOV
RLOJDVROLQHGLHVHO
QDWXUDOJDVDQGFRDO
VROLGZDVWHDQGZRRGRUZRRGSURGXFWVDUHEXUQHG
0HWKDQH
&+
&+LVHPLWWHGGXULQJWKHSURGXFWLRQDQGWUDQVSRUWRIFRDOQDWXUDOJDVDQGRLO 0HWKDQHHPLVVLRQVDOVRUHVXOWIURPWKHGHFRPSRVLWLRQRIRUJDQLFZDVWHLQPXQLFLSDOVROLGZDVWH ODQGILOOVDQGWKHUDLVLQJRIOLYHVWRFN

8.a
November 14, 2022

Packet Pg. 314

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
1LWURXVR[LGH
12
12LVHPLWWHGGXULQJDJULFXOWXUDODQGLQGXVWULDODFWLYLWLHVDVZHOODVGXULQJ FRPEXVWLRQRIVROLGZDVWHDQGIRVVLOIXHOV
6XOIXUKH[DIOXRULGH
6)
6)LVFRPPRQO\XVHGDVDQHOHFWULFDOLQVXODWRULQKLJKYROWDJH HOHFWULFDOWUDQVPLVVLRQDQGGLVWULEXWLRQHTXLSPHQWVXFKDVFLUFXLWEUHDNHUVVXEVWDWLRQVDQG WUDQVPLVVLRQVZLWFKJHDU5HOHDVHVRI6)RFFXUGXULQJPDLQWHQDQFHDQGVHUYLFLQJDVZHOODV IURPOHDNVRIHOHFWULFDOHTXLSPHQW
+\GURIOXRURFDUERQV
+)&V
DQGSHUIOXRURFDUERQV
3)&V
+)&VDQG3)&VDUHJHQHUDWHGLQD
YDULHW\RILQGXVWULDOSURFHVVHV
*+*HPLVVLRQVIURPKXPDQDFWLYLWLHVFRQWULEXWHWRRYHUDOO*+*FRQFHQWUDWLRQVLQWKH DWPRVSKHUHDQGWKHFRUUHVSRQGLQJHIIHFWVRIJOREDOFOLPDWHFKDQJH HJULVLQJWHPSHUDWXUHV
LQFUHDVHGVHYHUHZHDWKHUHYHQWVVXFKDVGURXJKWDQGIORRGLQJ *+*VFDQUHPDLQLQWKH
DWPRVSKHUHORQJDIWHUWKH\DUHHPLWWHG7KHSRWHQWLDOIRUD*+*WRDEVRUEDQGWUDSKHDWLQWKH DWPRVSKHUHLVFRQVLGHUHGLWVJOREDOZDUPLQJSRWHQWLDO
*:3
7KHUHIHUHQFHJDVIRUPHDVXULQJ
*:3LV&2ZKLFKKDVD*:3RIRQH%\FRPSDULVRQ&+KDVD*:3RIZKLFKPHDQV WKDWRQHPROHFXOHRI&+KDVWLPHVWKHHIIHFWRQJOREDOZDUPLQJDVRQHPROHFXOHRI&2 0XOWLSO\LQJWKHHVWLPDWHGHPLVVLRQVIRUQRQ&2*+*VE\WKHLU*:3GHWHUPLQHVWKHLUFDUERQ GLR[LGHHTXLYDOHQW
&2H
ZKLFKHQDEOHVDSURMHFW¶VFRPELQHGJOREDOZDUPLQJSRWHQWLDOWREH H[SUHVVHGLQWHUPVRIPDVV&2HPLVVLRQV*+*HPLVVLRQVDUHRIWHQGLVFXVVHGLQWHUPVRI 0HWULF7RQVRI&2HRU07&2H
5HJXODWRU\6HWWLQJ
&DOLIRUQLD*OREDO:DUPLQJ6ROXWLRQV$FW
$%
DQG5HODWHG/HJLVODWLRQ
&DOLIRUQLD$LU5HVRXUFHV%RDUG
&$5%
LVWKHOHDGDJHQF\IRULPSOHPHQWLQJ$VVHPEO\%LOO
$%

WKH&DOLIRUQLD*OREDO:DUPLQJ6ROXWLRQV$FWDGRSWHGE\WKH/HJLVODWXUHLQ$% UHTXLUHVWKH&$5%WRSUHSDUHD6FRSLQJ3ODQFRQWDLQLQJWKHPDLQVWUDWHJLHVWKDWZLOOEHXVHGWR DFKLHYHUHGXFWLRQVLQ*+*HPLVVLRQVLQ&DOLIRUQLD
([HFXWLYH2UGHU%&DUERQ7DUJHWDQG$GDSWDWLRQLVVXHGE\*RYHUQRU%URZQLQ $SULOVHWVDWDUJHWRIUHGXFLQJ*+*HPLVVLRQVE\SHUFHQWEHORZ

OHYHOVLQ
%\GLUHFWLQJVWDWHDJHQFLHVWRWDNHPHDVXUHVFRQVLVWHQWZLWKWKHLUH[LVWLQJDXWKRULW\WRUHGXFH *+*HPLVVLRQVWKLVRUGHUHVWDEOLVKHVFRKHUHQFHEHWZHHQWKHDQG*+*UHGXFWLRQ JRDOVVHWE\$%DQGVHHNVWRDOLJQ&DOLIRUQLDZLWKWKHVFLHQWLILFDOO\HVWDEOLVKHG*+* HPLVVLRQVOHYHOVQHHGHGWROLPLWJOREDOZDUPLQJEHORZWZRGHJUHHV&HOVLXV 7RUHLQIRUFHWKHJRDOVHVWDEOLVKHGWKURXJK([HFXWLYH2UGHU%*RYHUQRU%URZQZHQWRQ WRVLJQ6%DQG$%
RQ6HSWHPEHU6%PDGHWKH*+*UHGXFWLRQWDUJHWWR UHGXFH*+*HPLVVLRQVE\SHUFHQWEHORZ

OHYHOVE\DUHTXLUHPHQWDVRSSRVHGWR
DJRDO$%
JLYHVWKH/HJLVODWXUHDGGLWLRQDODXWKRULW\RYHU&$5%WRHQVXUHWKHPRVW VXFFHVVIXOVWUDWHJLHVIRUORZHULQJHPLVVLRQVDUHLPSOHPHQWHGDQGUHTXLUHV&$5%WR³SURWHFW WKHVWDWH¶VPRVWLPSDFWHGDQGGLVDGYDQWDJHGFRPPXQLWLHV«>DQG@FRQVLGHUWKHVRFLDOFRVWVRI WKHHPLVVLRQVRIJUHHQKRXVHJDVHV´
6FRSLQJ3ODQ
2Q'HFHPEHU&$5%DGRSWHGWKHVHFRQGXSGDWHWRWKH6FRSLQJ3ODQWKH &OLPDWH&KDQJH6FRSLQJ3ODQ8SGDWH
6FRSLQJ3ODQ8SGDWH
&$5%
7KHSULPDU\
REMHFWLYHRIWKH6FRSLQJ3ODQ8SGDWHLVWRLGHQWLI\WKHPHDVXUHVQHHGHGWRDFKLHYHWKH PLGWHUP*+*UHGXFWLRQWDUJHWIRU
LHUHGXFHHPLVVLRQVE\SHUFHQWEHORZ

OHYHOV
E\
DVHVWDEOLVKHGXQGHU([HFXWLYH2UGHU%DQG6%7KH6FRSLQJ3ODQ 8SGDWHLGHQWLILHVDQLQFUHDVLQJQHHGIRUFRRUGLQDWLRQDPRQJVWDWHUHJLRQDODQGORFDO JRYHUQPHQWVWRDFKLHYHWKH*+*HPLVVLRQVUHGXFWLRQVWKDWFDQEHJDLQHGIURPORFDOODQGXVH SODQQLQJDQGGHFLVLRQV,WQRWHVHPLVVLRQUHGXFWLRQWDUJHWVVHWE\PRUHWKDQRQHKXQGUHGORFDO

8.a
November 14, 2022

Packet Pg. 315

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
MXULVGLFWLRQVLQWKHVWDWHFRXOGUHVXOWLQHPLVVLRQVUHGXFWLRQVRIXSWR007&2(DQG 007&2(E\DQGUHVSHFWLYHO\7RDFKLHYHWKHVHJRDOVWKH6FRSLQJ3ODQ 8SGDWHLQFOXGHVDUHFRPPHQGHGSODQOHYHOHIILFLHQF\WKUHVKROGRIVL[PHWULFWRQVRUOHVVSHU FDSLWDE\DQGQRPRUHWKDQWZRPHWULFWRQVE\ 3ODQ%D\$UHD
,Q-DQXDU\
&DOLIRUQLD6%ZHQWLQWRHIIHFWNQRZQDVWKH6XVWDLQDEOH&RPPXQLWLHVDQG &OLPDWH3URWHFWLRQ$FW7KHREMHFWLYHRI6%LVWREHWWHULQWHJUDWHUHJLRQDOSODQQLQJRI WUDQVSRUWDWLRQODQGXVHDQGKRXVLQJWRUHGXFHJUHHQKRXVHJDVHPLVVLRQVDQGRWKHUDLU SROOXWDQWV6%WDVNV&$5%WRVHW*+*UHGXFWLRQWDUJHWVIRUHDFKRI&DOLIRUQLD¶VUHJLRQDO 0HWURSROLWDQ3ODQQLQJ2UJDQL]DWLRQV
032V
(DFK032LVUHTXLUHGWRSUHSDUHD6XVWDLQDEOH
&RPPXQLWLHV6WUDWHJ\
6&6
DVSDUWRIWKHLU5HJLRQDO7UDQVSRUWDWLRQ3ODQ
573
7KH6&6LVD
JURZWKVWUDWHJ\LQFRPELQDWLRQZLWKWUDQVSRUWDWLRQSROLFLHVWKDWZLOOVKRZKRZWKH032ZLOOPHHW LWV*+*UHGXFWLRQWDUJHW,IWKH6&6FDQQRWPHHWWKHUHGXFWLRQJRDODQ$OWHUQDWLYH3ODQQLQJ 6WUDWHJ\PD\EHDGRSWHGWKDWPHHWVWKHJRDOWKURXJKDOWHUQDWLYHGHYHORSPHQWLQIUDVWUXFWXUH DQGWUDQVSRUWDWLRQPHDVXUHVRUSROLFLHV
3ODQ%D\$UHDZDVWKHLQWHJUDWHGORQJUDQJHWUDQVSRUWDWLRQODQGXVHDQGKRXVLQJSODQ GHYHORSHGIRUWKH%D\$UHDSXUVXDQWWR6%WKDWZDVDGRSWHGE\WKH$VVRFLDWLRQRI%D\ $UHD*RYHUQPHQWV
$%$*
DQG0HWURSROLWDQ7UDQVSRUWDWLRQ&RPPLVVLRQ
07&
LQ$Q
XSGDWHWR3ODQ%D\$UHDWLWOHG3ODQ%D\$UHDZDVMRLQWO\DSSURYHGE\WKH$%$* ([HFXWLYH%RDUGDQGE\07&LQ3ODQ%D\$UHDDQG3ODQ%D\$UHDLGHQWLILHG3ULRULW\ 'HYHORSPHQW$UHDVZKLFKZHUHWUDQVLWRULHQWHGLQILOOGHYHORSPHQWRSSRUWXQLWLHVLQDUHDVZKHUH IXWXUHJURZWKZRXOGQRWLQFUHDVHXUEDQVSUDZO
2Q2FWREHU07&DQG$0%$*UHOHDVHG3ODQ%D\$UHDZKLFKIRFXVHGRQWKH HOHPHQWVRI+RXVLQJ(FRQRP\7UDQVSRUWDWLRQDQG(QYLURQPHQW$FURVVWKHVHHOHPHQWVWKHUH ZHUHDWRWDORIVWUDWHJLHVZKLFKDUHORQJWHUPSROLFLHVRULQYHVWPHQWVDQG LPSOHPHQWDWLRQDFWLRQVZKLFKFRQWDLQDGYRFDF\DQGOHJLVODWLRQLQLWLDWLYHVDQGSODQQLQJDQG UHVHDUFK3ODQ%D\$UHDSURMHFWHGWKDWLWZRXOGDFKLHYHDUHGXFWLRQLQ*+* HPLVVLRQVIURPFDUVDQGOLJKWGXW\WUXFNVE\LIDOORILWVVWUDWHJLHVZHUHLPSOHPHQWHGZKLFK ZRXOGPHHW6%¶V*+*WDUJHW
&OHDQ$LU3ODQ
$VGLVFXVVHGLQ6HFWLRQ$LU4XDOLW\WKH%$$40'¶V&OHDQ$LU3ODQLVDPXOWLSROOXWDQW SODQIRFXVHGRQSURWHFWLQJSXEOLFKHDOWKDQGWKHFOLPDWH %$$40'D
7KH&OHDQ$LU
3ODQOD\VWKHJURXQGZRUNIRUDORQJWHUPHIIRUWWRUHGXFH%D\$UHD*+*HPLVVLRQVSHUFHQW EHORZ

OHYHOVE\DQGSHUFHQWEHORZ

OHYHOVE\FRQVLVWHQWZLWK*+*
UHGXFWLRQWDUJHWVDGRSWHGE\WKHVWDWHRI&DOLIRUQLD$VRSSRVHGWRIRFXVLQJVROHO\RQWKHQHDUHU *+*UHGXFWLRQWDUJHWWKH&OHDQ$LU3ODQPDNHVDFRQFHUWHGHIIRUWWRLPDJLQHDQG SODQIRUDVXFFHVVIXODQGVXVWDLQDEOH%D\$UHDLQWKH\HDU,QWKH%D\$UHDLV HQYLVLRQHGDVDUHJLRQZKHUH

x (QHUJ\HIILFLHQWEXLOGLQJVDUHK HDWHGFRROHGDQGSRZHUHGE\ UHQHZDEOHHQHUJ\

x 7KHWUDQVSRUWDWLRQQHWZRUNKDVEHHQUHGHYHORSHGZLWKDQHPSKDV LVRQQRQYHKLFXODU PRGHVRIWUDQVSRUWDWLRQDQGPDVVWUDQVLW

x 7KHHOHFWULFLW\JULGLVSRZHUHGE\SHUFHQWUHQHZDEOHHQHUJ \ DQG
x %D\$UHDUHVLGHQWVKDYHDGRSWH GORZHUFDUERQLQWHQVLYHOLIHVW\OHV HJSXUFKDVLQJORZ
FDUERQJRRGVLQDGGLWLRQWRUHF\FOLQJDQGSXWWLQJRUJDQLFZDVWHWRSURGXFWLYHXVH
7KH&OHDQ$LU3ODQLQFOXGHVDFRPSUHKHQVLYHPXOWLSROOXWDQWFRQWUROVWUDWHJ\WKDWLV EURNHQXSLQWRGLVWLQFWPHDVXUHVDQGFDWHJRUL]HGEDVHGRQWKHVDPHHFRQRPLFVHFWRU

8.a
November 14, 2022

Packet Pg. 316

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
IUDPHZRUNXVHGE\&$5%IRUWKH$%6FRSLQJ3ODQ8SGDWH7KHDFFXPXODWLRQRIDOO FRQWUROPHDVXUHVEHLQJLPSOHPHQWHGVXSSRUWWKHWKUHHRYHUDUFKLQJJRDOVRIWKHSODQ7KHVH JRDOVDUH

x $WWDLQDOOVWDWHDQGQDWLRQDO DLUTXDOLW\VWDQGDUGV
x (OLPLQDWHGLVSDULWLHVDPRQJ%D\$UHDFRPPXQLWLHVLQFDQFHUKHD OWKULVNIURPWR[LFDLU

FRQWDPLQDQWV
DQG
x 5HGXFH%D\$UHD*+*(PLVVLRQVWR SHUFHQWEHORZ

OHYHOVE\DQG
SHUFHQWEHORZ

OHYHOVE\
6DQ&DUORV&OLPDWH0LWLJDWLRQDQG$FWLRQ3ODQ
,Q2FWREHU
WKH6DQ&DUORVDGRSWHGWKH&LW\RI6DQ&DUORV&OLPDWH$FWLRQ3ODQ

&$3
7KLVSODQHVWDEOLVKHGDEDVHOLQHIRU*+*HPLVVLRQVDQGVHWDJRDORIUHGXFLQJ *+*HPLVVLRQVE\EHORZOHYHOVE\DQGLQFOXGHGPHDVXUHVRQHQHUJ\VROLG ZDVWHPDQDJHPHQWWUDQVSRUWDWLRQDQGODQGXVH6DQ&DUORVXSGDWHGWKH&$3LQ6HSWHPEHU E\DGRSWLQJWKH&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ &0$3

7KH&0$3VHWDJRDORIUHGXFLQJ*+*HPLVVLRQVEHORZ

OHYHOVE\DQG
SHUFHQWEHORZ

OHYHOVE\RUHTXLYDOHQWO\RIUHGXFLQJ*+*HPLVVLRQV SHUFHQW
EHORZOHYHOVE\DQGSHUFHQWEHORZOHYHOVE\7KH&0$3FRQVLVWVRI DQHPLVVLRQVLQYHQWRU\DFOLPDWHFKDQJHYXOQHUDELOLW\DVVHVVPHQW*+*UHGXFWLRQ VWUDWHJLHVFOLPDWHDGDSWDWLRQVWUDWHJLHVDQGLPSOHPHQWDWLRQDQGPRQLWRULQJWKURXJK 7KH*+*UHGXFWLRQVWUDWHJLHVLQWKH&0$3FRQWDLQDFRPELQDWLRQRIHGXFDWLRQDQGRXWUHDFK SURJUDPVILQDQFLDOVXEVLGLHVDQGPDQGDWHVDFURVVWKHVHFWRUVRIHQHUJ\WUDQVSRUWDWLRQDQG ODQGXVHRIIURDGZDVWHZDWHUDQGZDVWHZDWHU7KHVHVWUDWHJLHVDLPHGWRDFFRPSOLVKWKH SODQ¶VJRDOVRIUHGXFLQJHQHUJ\XVHWUDQVLWLRQLQJWRFDUERQIUHHHQHUJ\VRXUFHVSURPRWLQJ HQHUJ\UHVLOLHQFHSURPRWLQJVXVWDLQDEOHGHYHORSPHQWWKDWUHGXFHV907WUDQVLWLRQLQJWRORZ FDUERQWUDQVSRUWDWLRQVXSSRUWLQJSROOXWLRQIUHHRXWGRRUHTXLSPHQWEHFRPLQJD]HURZDVWH FRPPXQLW\DQGUHGXFLQJFRPPXQLW\ZLGHZDWHUXVH7KH&0$3SURMHFWHGWKDWZLWKH[LVWLQJ DQGSODQQHGJRYHUQPHQWDFWLRQVDQGWKHLPSOHPHQWDWLRQRI&0$3¶VVWUDWHJLHV6DQ&DUORV ZRXOGPHHWWKHDQGHPLVVLRQVWDUJHWVDQGEHFRQVLVWHQWZLWKWKHVWDWH¶V$%DQG 6%*+*UHGXFWLRQJRDOV
6DQ&DUORV

'LVFXVVLRQ
*OREDOFOLPDWHFKDQJHLVWKHUHVXOWRI*+*HPLVVLRQVZRUOGZLGH LQGLYLGXDOSURMHFWVGRQRW
JHQHUDWHHQRXJK*+*HPLVVLRQVWRLQIOXHQFHJOREDOFOLPDWHFKDQJH7KXVWKHDQDO\VLVRI*+* HPLVVLRQVLVE\QDWXUHDFXPXODWLYHDQDO\VLVIRFXVHGRQZKHWKHUDQLQGLYLGXDOSURMHFW¶V FRQWULEXWLRQWRJOREDOFOLPDWHFKDQJHLVFXPXODWLYHO\FRQVLGHUDEOH D
*HQHUDWHJUHHQKRXVHJDVHPLVVLRQVHLWKHUGLUHFWO\RULQGLUH FWO\WKDWPD\ KDYHDVLJQLILFDQWLPSDFWRQWKHHQYLURQPHQW"
E
&RQIOLFWZLWKDQDSSOLFDEOHSROLF\RUUHJXODWLRQDGRSWHGIR UWKHSXUSRVHRI UHGXFLQJWKHHPLVVLRQVRIJUHHQKRXVHJDVHV"
/HVV7KDQ6LJQLILFDQW,PSDFW7KH%$$40'&(4$$LU4XDOLW\*XLGHOLQHVODVW FRPSUHKHQVLYHO\XSGDWHGLQ-XQHDQGUHYLVHGLQ0D\FRQWDLQJXLGDQFHRQ DVVHVVLQJDQGPLWLJDWLQJERWKSURMHFWDQGSODQOHYHO*+*LPSDFWV7KH%$$40'&(4$
7KHVHFWRUVLQFOXGHGLQWKH$%6FRSLQJ3ODQ8SGDWHDUH VWDWLRQDU\

LQGXVWULDO
VRXUFHV
WUDQVSRUWDWLRQHQHUJ\EXLOGLQJVDJULFXOWXUHQDWXUDODQGZRUNLQJODQGVZDVWHPDQDJHPHQWZDWHUDQG VXSHU*+*SROOXWDQWV

8.a
November 14, 2022

Packet Pg. 317

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
*XLGHOLQHVSURYLGHWZRWKUHVKROGVIRUSURMHFWOHYHODVVHVVPHQWV
DEULJKWOLQHWKUHVKROGRI
07&2HSHU\HDUDQG
D*+*HIILFLHQF\WKUHVKROGRI07&2HSHU6HUYLFH
3RSXODWLRQSHU\HDU
07&2H63<5

%$$40'E
%RWKRIWKHVHWKUHVKROGVZHUH
GHYHORSHGIRUWKH\HDUFRQVLVWHQWZLWKVWDWHZLGH*+*HPLVVLRQUHGXFWLRQJRDOVVHWIRUWK XQGHU$%DQGWKHUHIRUHGRHVQRWGLUHFWO\DGGUHVVSRVW*+*HPLVVLRQV $VGLVFXVVHGXQGHUWKH5HJXODWRU\6HWWLQJVHFWLRQ
VHH6HFWLRQ
WKH6WDWHRI&DOLIRUQLD
KDVDGRSWHGDGGLWLRQDO

FRGLILHG
JRDOVDQGSODQVIRUWKHSXUSRVHVRIUHGXFLQJ*+*HPLVVLRQV WKURXJK7KHUHIRUHWKLV,601'FRPSDUHVHVWLPDWHGHPLVVLRQVDJDLQVWDQLQWHUSRODWHG HIILFLHQF\PHWULFRI07&2H63<5IRUWKH<HDUWRKHOSHYDOXDWHWKHVLJQLILFDQFHRI SURSRVHGSURMHFW¶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¶V*+*HPLVVLRQV

x &$5%&OLPDWH&KDQJH6FRSLQJ3ODQ

x $%$*07&3ODQ%D\$UHD

x %$$40'&OHDQ$LU3ODQ
DQG
x &LW\RI6DQ&DUORV&0$3
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
$VGHVFULEHGSUHYLRXVO\WKH%$$40'¶VFXUUHQWO\DGRSWHG*+*WKUHVKROGVZHUHLQWHQGHGWR DGGUHVV*+*HPLVVLRQVWKURXJKWKH\HDU%HFDXVHWKHSURSRVHGSURMHFWZRXOGEHFRPH RSHUDWLRQDOSRVWWKLVDQDO\VLVXWLOL]HVWKHLQWHUSRODWHGSURMHFWVSHFLILF*+*HIILFLHQF\JRDO RI07&2H63<5WRKHOSGHPRQVWUDWHSURMHFWFRQVLVWHQF\ZLWKIXWXUHVWDWHZLGH*+* HPLVVLRQVUHGXFWLRQJRDOV
7KH%$$40'KDVQRWDGRSWHGDWKUHVKROGRIVLJQLILFDQFHIRUFRQVWUXFWLRQUHODWHG*+* HPLVVLRQV7KH%$$40'¶V&(4$$LU4XDOLW\*XLGHOLQHVGRKRZHYHUHQFRXUDJHOHDGDJHQFLHV WRTXDQWLI\DQGGLVFORVHFRQVWUXFWLRQUHODWHG*+*HPLVVLRQVGHWHUPLQHWKHVLJQLILFDQFHRI
6HUYLFH3RSXODWLRQLVGHILQHGDVWKHQXPEHURIUHVLGHQWVDQGHPSOR\HHVWKHSURMHFWVHUYHV 7KH07&2H63\USURMHFWVSHFLILFJRDOZDVGHYHORSHGE\WDNLQJWKH07&2H63\U WKUHVKROGZKLFKZDVWKHWKUHVKROGWRUHGXFHHPLVVLRQVEDFNWR

OHYHODQGUHGXFLQJLWE\SHUFHQW

07&2H63\U

07&2H63\U
7KLVGHPRQVWUDWHVWKHSURJUHVVUHTXLUHGXQGHU6%
7KLVOLQHDUUHGXFWLRQDSSURDFKRYHUVLPSOLILHVWKHWKUHVKROGGHYHORSPHQWSURFHVV7KH&LW\LVQRW DGRSWLQJQRUSURSRVLQJWRXVH07&2H63\UDVD&(4$*+*WKUHVKROGIRUJHQHUDOXVH UDWKHULWLV
RQO\LQWHQGHGIRUXVHRQWKLVSURMHFW

8.a
November 14, 2022

Packet Pg. 318

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
WKHVHHPLVVLRQVDQGLQFRUSRUDWH%03VWRUHGXFHFRQVWUXFWLRQUHODWHG*+*HPLVVLRQV $FFRUGLQJO\FRQVWUXFWLRQUHODWHG*+*HPLVVLRQVDUHDPRUWL]HGRYHUWKHOLIHWLPHRIWKH SURSRVHGSURMHFW
SUHVXPHGWREHDPLQLPXPRI\HDUV
7KLVQRUPDOL]HVFRQVWUXFWLRQ
HPLVVLRQVVRWKDWWKH\FDQEHJURXSHGZLWKRSHUDWLRQDOHPLVVLRQVDQGFRPSDUHGWRDSSURSULDWH WKUHVKROGVSODQVHWF
*+*HPLVVLRQVIURPFRQVWUXFWLRQDQGRSHUDWLRQRIWKHSURSRVHGSURMHFWZHUHHVWLPDWHGXVLQJ &DO((0RGYHUVLRQEDVHGRQGHIDXOWGDWDDVVXPSWLRQVFRQWDLQHGLQ&DO((0RGZLWK WKHSURMHFWVSHFLILFPRGLILFDWLRQVGHVFULEHGLQ6HFWLRQ7KHSURMHFW¶VHVWLPDWHG FRQVWUXFWLRQDQGRSHUDWLRQDO*+*HPLVVLRQVDUHSUHVHQWHGEHORZLQ7DEOH 7DEOH
3URMHFW*UHHQKRXVH*DV(PLVVLRQV
6RXUFH *+*(PLVVLRQV
07<5

&2 &+ 12 727$/
$

$UHD
(QHUJ\

0RELOH
%

6WDWLRQDU\

6ROLG:DVWH
:DWHU:DVWHZDWHU
$PRUWL]HG&RQVWUXFWLRQ
7RWDO0DVV(PLVVLRQV
&

3URMHFW(PSOR\PHQW
*+*(IILFLHQF\5DWLR
07&2H63

%$$40'7KUHVKROG
07&2H63

'HULYHG(PLVVLRQV*RDO
07&2H63

([FHHGV*RDO7KUHVKROG 1R
6RXUFH
%$$40'D0,*
6HH$SSHQGL[%

1RWH

$
0 7 & 2H

%
7KHPRELOHVRXUFHHPLVVLRQVDUHEDVHGRQZHHNGD\WULSJHQHUDWLRQUDWHVSURYLGHGE\+H[DJRQ 7UDQVSRUWDWLRQ&RQVXOWDQWVDQGUHGXFHGZHHNHQGWULSJHQHUDWLRQUDWHV WRUHIOHFWFRPSOLDQFHZLWK&LW\7'0
UHTXLUHPHQWV7KHWULSGLVWDQFHVZHUHOHIWDVPRGHOGHIDXOWV7KH9HKLFOH0LOHV7UDYHOHG 907
$QDO\VLV
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¶V*+*HPLVVLRQVRQD VHUYLFHSRSXODWLRQHIILFLHQF\EDVLVZRXOGEHUHGXFHGWRDSSUR[LPDWHO\07&2H63<5 ZKLFKLVEHORZWKH%$$40'WKUHVKROGRI07&2H63DQGSURMHFWVSHFLILFJRDOXVHG WRGHPRQVWUDWHFRPSOLDQFHZLWKIXWXUH*+*HPLVVLRQUHGXFWLRQJRDOV 07&2H63<5

$VGHVFULEHGDERYHWKLVDQDO\VLVDOVRXVHVSURMHFWFRQVLVWHQF\ZLWKWKH&$5%&OLPDWH &KDQJH6FRSLQJ3ODQ3ODQ%D\$UHD%$$40'&OHDQ$LU3ODQDQGWKH6DQ&DUORV

8.a
November 14, 2022

Packet Pg. 319

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQWRGHWHUPLQHWKHVLJQLILFDQFHRIWKHSURSRVHGSURMHFW¶V *+*HPLVVLRQVDVGLVFXVVHGEHORZ
&$5%&OLPDWH&KDQJH6FRSLQJ3ODQ
1HDUO\DOORIWKHVSHFLILFPHDVXUHVLGHQWLILHGLQWKH&OLPDWH&KDQJH6FRSLQJ3ODQZRXOG EHLPSOHPHQWHGDWWKHVWDWHOHYHOZLWK&$5%DQGRUDQRWKHUVWDWHRUUHJLRQDODJHQF\KDYLQJ WKHSULPDU\UHVSRQVLELOLW\IRUDFKLHYLQJUHTXLUHG*+*UHGXFWLRQV7KHSURSRVHGSURMHFW WKHUHIRUHZRXOGQRWGLUHFWO\FRQIOLFWZLWKDQ\RIWKHVSHFLILFPHDVXUHVLGHQWLILHGLQWKH &OLPDWH&KDQJH6FRSLQJ3ODQ
6HQDWH%LOODQG3ODQ%D\$UHD
7KHSURSRVHGSURMHFWZRXOGEHFRQVLVWHQWZLWKWKHUHOHYDQWVWUDWHJLHVLQ3ODQ%D\$UHDE\ IROORZLQJD7UDQVSRUWDWLRQ'HPDQG0DQDJHPHQW
7'0
3ODQSRWHQWLDOO\FRQVWUXFWLQJDELNH
DQGSHGHVWULDQEULGJHDQGLQVWDOOLQJHOHFWULFYHKLFOHFKDUJLQJVWDWLRQV7KHLPSOHPHQWDWLRQRI WKH7'0SODQZRXOGUHTXLUHWKHSURMHFWWRUHGXFHSURMHFWUHODWHG907E\DWOHDVW7KLV UHTXLUHPHQWZRXOGEHWUDFNHGDQGHQIRUFHGWKURXJKWKHLPSOHPHQWDWLRQRI0LWLJDWLRQ0HDVXUH 75$16
VHH6HFWLRQ
$FFRUGLQJO\WKHSURSRVHGSURMHFWZRXOGVXSSRUWRQHRIWKH SULPDU\JRDOVRI3ODQ%D\$UHDZKLFKLVWRUHGXFHSHUFDSLWDPRELOHVRXUFHHPLVVLRQV IURPOLJKWGXW\YHKLFOHVE\
E\
%$$40'&OHDQ$LU3ODQ
7KHSURMHFWZRXOGQRWFRQIOLFWZLWKRUREVWUXFWLPSOHPHQWDWLRQRIWKH%$$40'¶V&OHDQ$LU 3ODQ
%$$40'E
7KH&OHDQ$LU3ODQLQFOXGHV*+*HPLVVLRQVIURPFRQVWUXFWLRQ DQGRSHUDWLRQDO*+*HPLVVLRQVVRXUFHVLQLWVHPLVVLRQVLQYHQWRULHVDQGSODQVIRUDFKLHYLQJ &OHDQ$LU3ODQJRDOV$VGLVFXVVHGLQ6HFWLRQWKHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWK DSSOLFDEOHFRQWUROPHDVXUHVFRQWDLQHGLQWKH&OHDQ$LU3ODQ,QDGGLWLRQDVGHVFULEHG XQGHUUHVSRQVHD
DERYHWKHSURSRVHGSURMHFWZRXOGQRWH[FHHGWKH%$$40'¶VHVWDEOLVKHG 07&2H63<5WKUHVKROGQRUWKHSURMHFWVSHFLILFJRDO07&2H63<5XVHGWR GHPRQVWUDWHSURJUHVVWRZDUGWKH6WDWH¶V*+*HPLVVLRQUHGXFWLRQJRDO$FFRUGLQJO\WKH SURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKWKH&OHDQ$LU3ODQ &LW\RI6DQ&DUORV&OLPDWH0LWLJDWLRQDQG$FWLRQ3ODQ
$QDQDO\VLVRIWKHSURSRVHGSURMHFW¶VFRQVLVWHQF\ZLWKSRWHQWLDOO\DSSOLFDEOHPHDVXUHVLQWKH &LW\¶V&0$3LVSURYLGHGLQ7DEOH

7DEOH

3URMHFW&RQVLVWHQF\ZLWKWKH&LW\RI6DQ&DUORV¶V&OLPDWH0LWLJDWLRQ$FWLRQ 3ODQ
3RWHQWLDOO\$SSOLFDEOH0HDVXUHV &RQVLVWHQF\$QDO\VLV
(QHUJ\
6WUDWHJ\
5RRIWRS6RODU&RQWLQXHWRVXSSRUW
DQGLQFUHDVHSDUWLFLSDWLRQLQURRIWRSDQGRQVLWH
VRODUHQHUJ\V\VWHPVLQWKHFRPPXQLW\DQGDW
&LW\IDFLOLWLHV

1RW$SSOLFDEOH7KHSURMHFWZRXOGEHH[HPSWIURP
WKH&LW\¶V5HDFK&RGH6DQ&DUORV0XQLFLSDO
&RGH6HFWLRQDQGZRXOGQRWEH
UHTXLUHGWRLQVWDOOVRODUSDQHOVRQWKHEXLOGLQJ¶V
URRIWRS
7UDQVSRUWDWLRQDQG/DQG8VH
6WUDWHJ\$FWLYH7UDQVSRUWDWLRQ3ULRULWL]H
ELF\FOLQJDQGZDONLQJDVVDIHSUDFWLFDODQG
DWWUDFWLYHWUDYHORSWLRQVFLW\ZLGHDVGLUHFWHGE\
WKH%LF\FOHDQG3HGHVWULDQ0DVWHU3ODQ
&RQVLVWHQW7KHSURMHFWZRXOGSURYLGHELF\FOH
SDUNLQJVSDFHV)RUW\IRXU

RIWKHPZRXOGEH
ORQJWHUPLQGRRUVSDFHV7KHSURMHFWPD\DOVR
LQFOXGHWKHFRQVWUXFWLRQRIDELNHDQGSHGHVWULDQ
SDWKZD\FRQQHFWLQJWKHSURMHFWVLWHWR,QGXVWULDO
5RDG

8.a
November 14, 2022

Packet Pg. 320

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7DEOH

3URMHFW&RQVLVWHQF\ZLWKWKH&LW\RI6DQ&DUORV¶V&OLPDWH0LWLJDWLRQ$FWLRQ 3ODQ
3RWHQWLDOO\$SSOLFDEOH0HDVXUHV &RQVLVWHQF\$QDO\VLV
6WUDWHJ\3XEOLF&XUEV$VVHVVRSSRUWXQLWLHVLQ
WKHGRZQWRZQPL[HGXVHRIILFHDQGFRPPHUFLDO
DUHDVWRGHVLJQDWHSXEOLFFXUEVIRUSDVVHQJHU
SLFNXSGURSRIILQVXSSRUWRIULGHVKDULQJ
&RQVLVWHQW7KHSURMHFWZRXOGKDYHDSDVVHQJHU
ORDGLQJ]RQHQHDUWKHHQWU\OREE\IRUSDVVHQJHU
SLFNXSGURSRII
6WUDWHJ\
3XEOLF6SDFHV&UHDWHDQGPDLQWDLQ
DFFHVVLEOHSXEOLFVSDFHVLQFOXGLQJWKHIXOO
VSHFWUXPRIWKHSXEOLFUHDOP
VLGHZDONVDOOH\V
SHGHVWULDQSDVHRVSHGHVWULDQDQGELF\FOHSDWKV
SOD]DVVTXDUHVDQGSXEOLFJDWKHULQJVSDFHV
&RQVLVWHQW7KHSURMHFWPD\LQFOXGHWKH
FRQVWUXFWLRQRIDELNHDQGSHGHVWULDQEULGJHWKDW
ZRXOGSURYLGHSXEOLFDFFHVVWRWKHVLWHDORQJZLWK
RQ
VLWHSHGHVWULDQFURVVLQJV
6WUDWHJ\
9HKLFOH0LOHV7UDYHOHG5HGXFH
FRPPXQLW\ZLGHWUDQVSRUWDWLRQUHODWHGHPLVVLRQV
SHUUHVLGHQWDQGHPSOR\HHZLWKDQHPSKDVLVRQ
UHGXFWLRQVIURPH[LVWLQJDQGQHZGHYHORSPHQWLQ
WKHFLW\¶VFRUHFRPPHUFLDORIILFHDQGLQGXVWULDO
DUHDVLQFOXGLQJGHYHORSPHQWRQWKHHDVWVLGH
&RQVLVWHQW7KHSURMHFWZRXOGIROORZ6DQ&DUORV¶
7UDQVSRUWDWLRQ'HPDQG0DQDJHPHQW
7'0

SROLF\ZKLFKUHTXLUHVDWULSUHGXFWLRQIRUWKH
3URMHFWE\IROORZLQJD7'
03ODQ
6WUDWHJ\
(OHFWULF9HKLFOHV6XSSRUWUHVLGHQWV
DQGEXVLQHVVRZQHUVWRWUDQVLWLRQWRHOHFWULFDQG
SOXJLQK\EULGYHKLFOHV
&RQVLVWHQW7KHSURMHFWZRXOGLQFOXGH(9
SDUNLQJVSDFHVZLWKFKDUJLQJVWDWLRQV
2II5RDG
6WUDWHJ\
&OHDQIXHO&RQVWUXFWLRQDQG
/DQGVFDSLQJ(QFRXUDJHK\EULGDQGFOHDQIXHO
FRQVWUXFWLRQDQGODQGVFDSLQJHTXLSPHQWFLW\ZLGH
&RQVLVWHQW3URMHFWFRQVWUXFWLRQZLOOXVH7LHU
HTXLSPHQW
:DVWH
6WUDWHJ\
&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH
,QFUHDVHWKHDPRXQWRIZDVWHUHF\FOHGGXULQJ
FRQVWUXFWLRQDQGGHPROLWLRQRIEXLOGLQJV
&RQVLVWHQW7KHSURMHFWZRXOGGLYHUWFRQVWUXFWLRQ
ZDVWHFRQVLVWHQWZLWK&DO*UHHQ&RGH
UHTXLUHPHQWVDQG&LW\0XQLFLSDO&RGH&KDSWHU

$GDSWDWLRQDQG5HVLOLHQFH
6WUDWHJ\
+HDW,VODQG(IIHFW0LQLPL]HWKH
XUEDQKHDWLVODQGHIIHFW
&RQVLVWHQW7KHSURMHFWZRXOGEHVXEMHFWWRWKH

7LWOH%XLOGLQJ&RGHZKLFKZRXOGUHTXLUH
WKHSURSRVHGEXLOGLQJVWRKDYHURRIVWKDWPHHWWKH
DJHGVRODUUHIOHFWDQFHDQGWKHUPDOHPLWWDQFH
UHTXLUHPHQWVVSHFLILHGLQ&DO*UHHQ&RGH6HFWLRQ

D

LL

6RXUFH
6DQ&DUORVD
$VVKRZQLQ7DEOH
WKHSURSRVHGSURMHFWZRXOGEHFRQVLVWHQWZLWKWKH&LW\¶V&0$3DQG WKHUHIRUHQRWFRQIOLFWZLWKLW
*+*(PLVVLRQV&RQFOXVLRQ7KHSURSRVHGSURMHFW¶V*+*HPLVVLRQVZRXOGUHVXOWLQDQHW LQFUHDVHLQ*+*HPLVVLRQV
KRZHYHUEDVHGRQWKHSUHFHHGLQJDQDO\VLVWKHVHHPLVVLRQVZRXOG EHEHORZWKHSURMHFWVSHFLILFHIILFLHQF\JRDORI07&2HDQGWKHSURMHFWZRXOGQRWFRQIOLFW REVWUXFWRURWKHUZLVHLQWHUIHUHZLWKWKHLPSOHPHQWDWLRQRIDSODQSROLF\RUUHJXODWLRQIRUWKH SXUSRVHVRIUHGXFLQJ*+*HPLVVLRQV7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW 5HIHUHQFHV
%D\$UHD$LU4XDOLW\0DQDJHPHQW'LVWULFW
%$$40'
D&DOLIRUQLD(QYLURQPHQWDO4XDOLW\
$FW$LU4XDOLW\*XLGHOLQHV6DQ)UDQFLVFR&$-XQHXSGDWHG0D\

8.a
November 14, 2022

Packet Pg. 321

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
BBBBBBE&OHDQ$LU3ODQ
6SDUHWKH$LU&RROWKH&OLPDWH%$$40'3ODQQLQJ
5XOHVDQG5HVHDUFK'LYLVLRQ$SULO

&DOLIRUQLD$LU5HVRXUFHV%RDUG
&$5%
&OLPDWH&KDQJH6FRSLQJ3ODQ
6DFUDPHQWR&$'HFHPEHU
&LW\RI6DQ&DUORV
&OLPDWH$FWLRQ3ODQ&LW\RI6DQ&DUORV&$2FWREHU
BBBBBB&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ
&0$3
&LW\RI6DQ&DUORV&$
6HSWHPEHU
3ODQ%D\$UHD)RUHFDVWLQJDQG0RGHOLQJ5HSRUW2FWREHU$FFHVVHG-DQXDU\ DW
KWWSV
ZZZSODQED\DUHDRUJVLWHVGHIDXOWILOHVGRFXPHQWV3ODQB%D\B$UHDBB)RUHFD VWLQJB0RGHOLQJB5HSRUWB2FWREHUBSGI
1DWLRQDO2FHDQLFDQG$WPRVSKHULF$GPLQLVWUDWLRQ
12$$
³0DXQD/RD&20RQWKO\
0HDQ'DWD´7UHQGVLQ$WPRVSKHULF&DUERQ'LR[LGH12$$(DUWK6\VWHP5HVHDUFK /DERUDWRU\*OREDO0RQLWRULQJ'LYLVLRQ6HSWHPEHU
:HE$FFHVVHG)HEUXDU\
KWWS
ZZZHVUOQRDDJRYJPGFFJJWUHQGV

8.a
November 14, 2022

Packet Pg. 322

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW

+$=$5'6$1'+$=$5'2860$7(5,$/6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQW
ZLWK0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
&UHDWHDVLJQLILFDQWKD]DUGWRWKHSXEOLFRUWKH
HQYLURQPHQWWKURXJKWKHURXWLQHWUDQVSRUWXVHRU
GLVSRVDORIKD]DUGRXVPDWHULDOV"

E
&UHDWHDVLJQLILFDQWKD]DUGWRWKHSXEOLFRUWKH
HQYLURQPHQWWKURXJKUHDVRQDEO\IRUHVHHDEOHXSVHW
DQGDFFLGHQWFRQGLWLRQVLQYROYLQJWKHUHOHDVHRI
KD]DUGRXVPDWHULDOVLQWRWKHHQYLURQPHQW"

F
(PLWKD]DUGRXVHPLVVLRQVRUKDQGOHKD]DUGRXV
RUDFXWHO\KD]DUGRXVPDWHULDOVVXEVWDQFHVRU
ZDVWHZLWKLQ
RQHTXDUWHUPLOHRIDQH[LVWLQJRU
SURSRVHGVFKRRO"

G
%HORFDWHGRQDVLWHZKLFKLVLQFOXGHGRQDOLVWRI
KD]DUGRXVPDWHULDOVVLWHVFRPSLOHGSXUVXDQWWR
*RYHUQPHQW&RGH6HFWLRQ
DQGDVD
UHVXOWZRXOGLWFUHDWHDVLJQLILFDQWKD]DUGWRWKH
SXEOLFRUWKHHQYLURQPHQW"

H
)RUDSURMHFWORFDWHGZLWKLQDQDLUSRUWODQGXVH
SODQRUZKHUHVXFKDSODQKDVQRWEHHQDGRSWHG
ZLWKLQPLOHVRIDSXEOLFD
LUSRUWRUSXEOLFXVH
DLUSRUWUHVXOWLQDVDIHW\KD]DUGRUH[FHVVLYHQRLVH
IRUSHRSOHUHVLGLQJRUZRUNLQJLQWKHSURMHFWDUHD"

I
,PSDLULPSOHPHQWDWLRQRIRUSK\VLFDOO\LQWHUIHUH
ZLWKDQDGRSWHGHPHUJHQF\UHVSRQVHSODQRU
HPHUJHQF\HYDFXDWLRQSODQ"

J
([SRVHSHRSOHRUVWUXFWXUHVHLWKHUGLUHFWO\RU
LQGLUHFWO\WRDVLJQLILFDQWULVNRIORVVLQMXU\RU
GHDWKLQYROYLQJZLOGODQGILUHV"

(QYLURQPHQWDO6HWWLQJ
7KHSURMHFWVLWHLVFXUUHQWO\GHYHORSHGDVDVHOIVWRUDJHIDFLOLW\7KHVLWHLVVXUURXQGHGE\ H[LVWLQJVLQJOHIDPLO\UHVLGHQWLDOFRPPHUFLDODQGOLJKWLQGXVWULDOUHWDLOXVHV$FFRUGLQJWRDHULDO LPDJHU\DQGWRSRJUDSKLFPDSVRIWKHSURMHFWDUHDWKHVHOIVWRUDJHIDFLOLW\KDVEHHQRQWKH SURMHFWVLWHVLQFHWKHODWH
V
(1*(2

,Q-DQXDU\(1*(2SUHSDUHGD3KDVH,(QYLURQPHQWDO6LWH$VVHVVPHQW (6$
WRUHYLHZ
VLWHXVHDQGFXUUHQWFRQGLWLRQVWRFKHFNIRUWKHVWRUDJHXVHSURGXFWLRQRUGLVSRVDORI KD]DUGRXVRUSRWHQWLDOO\KD]DUGVPDWHULDOVDWWKHVLWHEDVHGRQWKHVLWH¶VSDVWDQGFXUUHQWXVH 7KH3KDVH,(6$FRQGXFWHGDOLPLWHGVRLODQGJURXQGZDWHUVDPSOLQJHIIRUWWRFKDUDFWHUL]H SRWHQWLDOFRQWDPLQDQWVDWWKHVLWH7KHVRLOVDPSOHVZHUHDQDO\]HGIRU
x 7KHKHDY\PHWDOVLGHQWLILHGLQWKH&DOLIRUQLD$GPLQLVWUDWLY H0DQXDO &$0PHWDOV

x 9RODWLOHRUJDQLFFRPSRXQGV
92& V
DQGWRWDOSHWUROHXPK\GURFDUERQVDVJDVROLQH

73+J

x 7RWDOSHWUROHXPK\GURFDUERQVDVGLHVHODQGPRWRURLO 73+GPR

8.a
November 14, 2022

Packet Pg. 323

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
*URXQGZDWHUVDPSOHVZHUHDQDO\]HGIRU

x 92&VDQG73+J
x7 3 + G P R
x &$0PHWDOV
WRWDODQGGLVVROYHG

x 7RWDORLODQGJUHDVH
7KHODERUDWRU\UHVXOWVLGHQWLILHGGHWHFWDEOHFRQFHQWUDWLRQVRIWKHIROORZLQJPHWDOVLQVRLO
DUVHQLFEDULXPFKURPLXPFREDOWFRSSHUOHDGQLFNHOYDQDGLXPDQG]LQF:LWKWKHH[FHSWLRQ RIDUVHQLFQRQHRIWKHGHWHFWHGPHWDOOLFDQDO\WHVZLWKLQDQDO\]HGVRLOVDPSOHVH[FHHGWKHLU UHVSHFWLYH6DQ)UDQFLVFR%D\5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG¶V 5:4&%¶V

(QYLURQPHQWDO6FUHHQLQJ/HYHOV
(6/V
&RQFHQWUDWLRQVRIDUVHQLFZHUHREVHUYHGWREHDERYH
WKH5:4&%¶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
9DULRXVPHWDOVZHUHGHWHFWHGLQWKHWZRJURXQGZDWHUVDPSOHVDQDO\]HG:LWKWKHH[FHSWLRQRI DUVHQLFDOOGLVVROYHGPHWDOOLFFRQFHQWUDWLRQVLQWKHJURXQGZDWHUZHUHUHSRUWHGEHORZUHVSHFWLYH 0D[LPXP&RQWDPLQDQW/HYHO
0&/
SULRULW\EDVHG(6/V0LQRUFRQFHQWUDWLRQVRI73+JDQG FKORURIRUPZHUHGHWHFWHGLQRQHRIWKHVDPSOHV
KRZHYHUWKHGHWHFWHGFRQFHQWUDWLRQVZHUH
EHORZUHVSHFWLYH(6/V7RWDOSHWUROHXPK\GURFDUERQVDVGLHVHO73+PRDQGWRWDORLODQG JUHDVHZHUHQRWGHWHFWHGLQDQ\JURXQGZDWHUVDPSOHVDQDO\]HG 7KH3KDVH,(6$DOVRGHWHUPLQHGWKDWGXHWRWKHDJHRIWKHH[LVWLQJVWUXFWXUHVRQVLWHWKDW DVEHVWRVFRQWDLQLQJPDWHULDOVDQGOHDGEDVHGSDLQWPD\H[LVWZLWKLQWKHVWUXFWXUHV $FFRUGLQJWRWKH3KDVH,(6$WKHUHDUHVLWHVOLVWHGRQWKH&RQWDPLQDWHG6LWHV/LVWZLWKLQ RQHPLOHRIWKHSURMHFWVLWH
(1*(2
:KLOHPDSSHGKD]DUGRXVPDWHULDOVVLWHVDUH
ORFDWHGLQWKHSURMHFWVLWHYLFLQLW\EDVHGRQWKHGLVWDQFHVWRWKHLGHQWLILHGGDWDEDVHVLWHV UHJLRQDOWRSRJUDSKLFJUDGLHQWDQGILQGLQJVIURP(QYLURQPHQWDO'DWD5HVRXUFHV ('5
LWLV
XQOLNHO\WKDWWKHGDWDEDVHVLWHVLQWKHSURMHFWYLFLQLW\SRVHDQHQYLURQPHQWDOULVNWRWKHSURMHFW VLWH
(1*(2
1R5HFRJQL]HG(QYLURQPHQWDO&RQGLWLRQV
5(&V
QRKLVWRULFDO5(&VDQG
QRFRQWUROOHG5(&VZHUHLGHQWLILHGIRUWKHVLWH

5HJXODWRU\6HWWLQJ
5HVRXUFH&RQVHUYDWLRQ5HFRYHU\$FW
7KH
5HVRXUFH&RQVHUYDWLRQ5HFRYHU\$FW
5&5$

86&
HWVHT
JLYHVWKH
86(QYLURQPHQWDO3URWHFWLRQ$JHQF\
(3$
WKHDXWKRULW\WRFRQWUROKD]DUGRXVZDVWHIURP
FUDGOHWRJUDYH7KLVLQFOXGHVWKHJHQHUDWLRQWUDQVSRUWDWLRQWUHDWPHQWVWRUDJHDQGGLVSRVDORI KD]DUGRXVZDVWH5&5$DOVRVHWIRUWKDIUDPHZRUNIRUWKHPDQDJHPHQWRIQRQKD]DUGRXVVROLG ZDVWHV7KH5&5$ZDVDPHQGHGLQ
WRDOORZWKH(3$WRDGGUHVVHQYLURQPHQWDOSUREOHPV
WKDWFRXOGUHVXOWIURPXQGHUJURXQGWDQNVVWRULQJSHWUROHXPDQGRWKHUKD]DUGRXVVXEVWDQFHV
7HVWLQJRI92&VLQFOXGHGWULFKORURHWK\OHQHDQGWHWUDFKORURHWK\OHQHWKURXJK(3$0HWKRG%ZKLFK LVUHIHUUHGWRDV0HWKRGLQWKH(1*(2UHSRUWVDQGRUJDQRFKORULQHSHVWLFLGHVWKURXJK(3$0HWKRG
(1*(2

8.a
November 14, 2022

Packet Pg. 324

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
0RVWRIWKHFRPSOLDQFHPRQLWRULQJUHVSRQVLELOLW\XQGHUWKH5&5$LVGHOHJDWHGWRWKHVWDWHVDQG ORFDODXWKRULWLHV
&RPSUHKHQVLYH(QYLURQPHQWDO5HVSRQVH&RPSHQVDWLRQDQG/LDELOLW\$FW 7KH
&RPSUHKHQVLYH(QYLURQPHQWDO5HVSRQVH&RPSHQVDWLRQDQG/LDELOLW\$FW &(5&/$
RU6XSHUIXQG

86&
HWVHT
SURYLGHVD)HGHUDO6XSHUIXQGWRFOHDQXS
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
+D]DUGRXV0DWHULDOV7UDQVSRUWDWLRQ$FW
7KH
+D]DUGRXV0DWHULDOV7UDQVSRUWDWLRQ$FW
+07$

86&HWVHT
LVWKH
SULQFLSDO)HGHUDOODZJRYHUQLQJWKHWUDQVSRUWDWLRQRIKD]DUGRXVPDWHULDOV7KH+07$VHWV UHJXODWLRQVIRUSURFHGXUHVDQGSROLFLHVPDWHULDOGHVLJQDWLRQVDQGODEHOLQJSDFNDJLQJ UHTXLUHPHQWVDQGRSHUDWLRQDOUXOHVWRJXLGHWKHVDIHWUDQVSRUWDWLRQRIKD]DUGRXVPDWHULDOV7KH +07$SUHHPSWVVWDWHDQGORFDOJRYHUQPHQWDOUHTXLUHPHQWVWKDWDUHLQFRQVLVWHQWZLWKWKH VWDWXWHXQOHVVWKDWUHTXLUHPHQWDIIRUGVDQHTXDORUJUHDWHUOHYHORISURWHFWLRQWRWKHSXEOLFWKDQ WKH+07$UHTXLUHPHQW
,QWHUQDWLRQDO)LUH&RGH
7KH,QWHUQDWLRQDO)LUH&RGH
,)&

LVDPRGHOFRGHWKDWFRQWDLQVUHJXODWLRQVWRVDIHJXDUG OLIHDQGSURSHUW\IURPILUHVDQGH[SORVLRQKD]DUGV7KH,)&FRYHUVJHQHUDOSUHFDXWLRQV HPHUJHQF\SODQQLQJDQGSUHSDUHGQHVVILUHGHSDUWPHQWDFFHVVVDQGZDWHUVXSSOLHVDXWRPDWLF VSULQNOHUV\VWHPVILUHDODUPV\VWHPVVSHFLDOKD]DUGVDQGWKHVWRUDJHDQGXVHRIKD]DUGRXV PDWHULDOV7KH,)&KDVEHHQDGRSWHGIRUXVHDVDEDVHFRGHVWDQGDUGE\PDQ\MXULVGLFWLRQVLQ WKH8QLWHG6WDWHV
&DOLIRUQLD&RGHRI5HJXODWLRQV7LWOH
&DOLIRUQLD&RGHRI5HJXODWLRQV
&&5
7LWOH
6RFLDO6HFXULW\
'LYLVLRQ
(QYLURQPHQWDO
+HDOWK6WDQGDUGVIRUWKH0DQDJHPHQWRI+D]DUGRXV:DVWHUHJXODWHVWKHJHQHUDWLRQ WUDQVSRUWDWLRQWUHDWPHQWVWRUDJHDQGGLVSRVDORIKD]DUGRXVZDVWH&&57LWOH'LYLVLRQ LGHQWLILHVZDVWHVWKDWDUHVXEMHFWWRUHJXODWLRQDVKD]DUGRXVZDVWHVHWVVWDQGDUGVIRU JHQHUDWRUVDQGWUDQVSRUWHUVRIKD]DUGRXVZDVWHDQGRZQHUVDQGRSHUDWRUVRIKD]DUGRXVZDVWH WUDQVIHUWUHDWPHQWVWRUDJHDQGGLVSRVDOIDFLOLWLHV
HVWDEOLVKHVWKHKD]DUGRXVZDVWHSHUPLW

SURJUDP
FRQWDLQVUHTXLUHPHQWVSHUWDLQLQJWRVSHFLILFW\SHVRIKD]DUGRXVZDVWHV DQGPRUH
7KH'HSDUWPHQWRI7R[LF6XEVWDQFHV&RQWURO
'76&
LPSOHPHQWVPRVWFKDSWHUVXQGHUWKLV
GLYLVLRQ
&DOLIRUQLD&RGHRI5HJXODWLRQV7LWOH
&DOLIRUQLD&RGHRI5HJXODWLRQV
&&5
7LWOH
(QYLURQPHQWDO3URWHFWLRQ
FRQWDLQVWKHFXUUHQW
UHJXODWLRQVRI&DO5HF\FOHDQGWKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUGSHUWDLQLQJWRZDVWH GLVSRVDORQODQG&&57LWOHUHJXODWHVWKHWUHDWPHQWVWRUDJHDQGGLVSRVDORIVROLGZDVWHVE\ HVWDEOLVKLQJFULWHULDIRUZDVWHPDQDJHPHQWXQLWVIDFLOLWLHVDQGGLVSRVDOVLWHV VHWWLQJ
GRFXPHQWDWLRQDQGUHSRUWLQJSURFHGXUHVIRUUHJXODWRU\WLHUVSHUPLWVZDVWHGLVFKDUJH UHTXLUHPHQWV
:'5V
DQGSODQV
DQGVHWWLQJVWDQGDUGVIRUVSHFL
DOWUHDWPHQWVWRUDJHDQG
GLVSRVDOXQLWV

8.a
November 14, 2022

Packet Pg. 325

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW

'LVFXVVLRQ
:RXOGWKHSURMHFW

D
&UHDWHDVLJQLILFDQWKD]DUGWRWKHSXEOLFRUWKHHQYLURQPHQW WKURXJKWKHURXWLQH WUDQVSRUWXVHRUGLVSRVDORIKD]DUGRXVPDWHULDOV"
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
x 7KH5HVRXUFH&RQVHUYDWLRQ5HFRYHU\$FWZKLFKSURYLGHVWKH³FU DGOHWRJUDYH´ UHJXODWLRQRIKD]DUGRXVZDVWHV

x 7KH&RPSUHKHQVLYH(QYLURQPHQWDO 5HVSRQVH&RPSHQVDWLRQDQG/LDELOLW\$FWZKLFK UHJXODWHVFORVHGDQGDEDQGRQHGKD]DUGRXVZDVWHVLWHV

x 7KH+D]DUGRXV0DWHULDOV7UDQVSR UWDWLRQ$FWZKLFKJRYHUQVKD]DUGRXVPDWHULDOV WUDQVSRUWDWLRQRQ86URDGZD\V

x 7KH,QWHUQDWLRQDO)LUH&RGHZKLFKFUHDWHVSURFHGXUHVDQGPHFK DQLVPVWRHQVXUHWKH VDIHKDQGOLQJDQGVWRUDJHRIKD]DUGRXVPDWHULDOV

x &DOLIRUQLD&RGHRI5HJXODWLRQV7L WOHZKLFKUHJXODWHVWKHJHQHUDWLRQWUDQVSRUWDWLRQ WUHDWPHQWVWRUDJHDQGGLVSRVDORIKD]DUGRXVZDVWH
DQG
x 7KH&DOLIRUQLD&RGHRI5HJXODWL RQV7LWOHZKLFKUHJXODWHVWKHWUHDWPHQWVWRUDJHDQG GLVSRVDORIVROLGZDVWHV
&RPSOLDQFHZLWKDSSOLFDEOHUHJXODWLRQVZRXOGHQVXUHWKDWWKHSURMHFWZRXOGQRWFUHDWHD VLJQLILFDQWKD]DUGWRWKHSXEOLFRUWKHHQYLURQPHQWWKURXJKWKHURXWLQHWUDQVSRUWXVHRUGLVSRVDO RIKD]DUGRXVPDWHULDOV
$VQRWHGDERYHLQWKHHQYLURQPHQWDOVHWWLQJRQHVRLOVDPSOHWDNHQDWWKHVLWHH[KLELWHGD FKURPLXPFRQFHQWUDWLRQRIPLOOLJUDPVSHUNLORJUDPRIFROOHFWHGVRLOZKLFKLVDSSUR[LPDWHO\ WLPHVWKHUHVSHFWLYHVROXEOHWKUHVKROGOLPLWFRQFHQWUDWLRQRIPLOOLJUDPVSHUOLWHU$GGLWLRQDO VRLOWHVWLQJZRXOGEHGRQHGXULQJJUDGLQJH[FDYDWLRQDFWLYLWLHVWRGHWHUPLQHWKHDSSURSULDWH GLVSRVDOIDFLOLW\IRUWKHIHHWRIVRLOWKDWZRXOGEHH[FDYDWHGDQGRIIKDXOHGWRDFFRPPRGDWH WKHXQGHUJURXQGSDUNLQJ
VHHPRUHRQTXDQWLWLHVRIRIIKDXOSUHVHQWHGLQ6HFWLRQ 7KH
VRLOZRXOGEHVXLWDEOHIRUUHXVHRQVLWHKRZHYHUDQGZRXOGQRWUHTXLUHUHPHGLDWLRQSHUH[LVWLQJ UHJXODWLRQV7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW E
&UHDWHDVLJQLILFDQWKD]DUGWRWKHSXEOLFRUWKHHQYLURQPHQWWKURXJKUHDVRQDEO\ IRUHVHHDEOHXSVHWDQGDFFLGHQWFRQGLWLRQVLQYROYLQJWKHUHOHDVH RIKD]DUGRXV PDWHULDOVLQWRWKHHQYLURQPHQW"
/HVV7KDQ6LJQLILFDQW,PSDFW3RWHQWLDOKD]DUGVWRWKHSXEOLFRUWKHHQYLURQPHQWWKURXJKWKH DFFLGHQWDOUHOHDVHRIKD]DUGRXVPDWHULDOVLQWRWKHHQYLURQPHQWGXULQJSURMHFWFRQVWUXFWLRQDQG RSHUDWLRQDUHGLVFXVVHGEHORZ

8.a
November 14, 2022

Packet Pg. 326

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
3URMHFW&RQVWUXFWLRQ
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
6DQ0DWHR&RXQW\+HDOWK
ZRXOGEHUHTXLUHGWKURXJKRXWWKHGXUDWLRQRI
FRQVWUXFWLRQ,QDGGLWLRQDVGHVFULEHGXQGHUFULWHULRQD VRLORIIKDXOHGGXULQJJUDGLQJDQG
H[FDYDWLRQZRXOGEHWHVWHGWRGHWHUPLQHWKHDSSURSULDWHPHWKRGRIGLVSRVDO7KLVWHVWLQJLVD W\SLFDOSUDFWLFHDVVRFLDWHGZLWKZDVWHWUDQVSRUWDWLRQDQGGLVSRVDODQGLVQRWLQGLFDWLYHRID KXPDQKHDOWKRUHQYLURQPHQWDOULVNDWWKHVLWH
(1*(2D
7KHUHIRUHVXEVWDQWLDOKD]DUGV
WRWKHSXEOLFRUWKHHQYLURQPHQWDULVLQJIURPWKHDFFLGHQWDOUHOHDVHRIKD]DUGRXVPDWHULDOV GXULQJSURMHFWFRQVWUXFWLRQZRXOGQRWRFFXU
3URMHFW2SHUDWLRQ
$VGLVFXVVHGDERYHXQGHUFULWHULRQD
RSHUDWLRQRIWKHSURMHFWZRXOGLQYROYHWKHXVHVWRUDJH DQGRUGLVSRVDORIKD]DUGRXVPDWHULDOVDVVRFLDWHGZLWKRSHUDWLRQDODFWLYLWLHVLQFOXGLQJ ODERUDWRU\XVHFOHDQLQJDQGODQGVFDSHPDLQWHQDQFH7KHVSHFLILFFKHPLFDOVDQGWKHLU TXDQWLWLHVDUHQRWNQRZQDWWKLVWLPHDVLWZRXOGGHSHQGRQWKHWHQDQW V
ZKRHYHQWXDOO\RFFXS\
WKHEXLOGLQJ$OWKRXJKFRPSOLDQFHZLWKDSSOLFDEOHUHJXODWLRQVZRXOGPDNHLWXQOLNHO\SURMHFW RSHUDWLRQFRXOGUHVXOWLQWKHDFFLGHQWDOUHOHDVHRIRQHRUPRUHRIWKHVHPDWHULDOVLQWRWKH HQYLURQPHQW
7KHWHQDQW
V
RIWKHSURMHFWEXLOGLQJZRXOGEHUHTXLUHGWRSUHSDUHDQGLPSOHPHQWDKD]DUGRXV PDWHULDOVEXVLQHVVSODQ
+0%3
IRUKD]DUGRXVPDWHULDOVURXWLQHO\XVHGDQGVWRUHGDWWKHVLWH 6DQ0DWHR&RXQW\+HDOWK'HSDUWPHQWLVWKH&HUWLILHG8QLILHG3URJUDP$JHQF\ &83$
IRU6DQ
0DWHR&RXQW\LQFOXGLQJWKH&LW\RI6DQ&DUORVDQGLVUHVSRQVLEOHIRUHQIRUFLQJ&KDSWHU RI
WKH+HDOWKDQG6DIHW\&RGH$VWKH&83$6DQ0DWHR&RXQW\+HDOWKLVUHTXLUHGWRUHJXODWH +0%3VDQGFKHPLFDOLQYHQWRU\KD]DUGRXVZDVWHDQGWLHUHGSHUPLWWLQJXQGHUJURXQGVWRUDJH WDQNVDQGULVNPDQDJHPHQWSODQV
6DQ0DWHR&RXQW\+HDOWK

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
)XUWKHUPRUH6DQ0DWHR&RXQW\+HDOWKLVUHTXLUHGWRFRQGXFWRQJRLQJURXWLQHLQVSHFWLRQVWR HQVXUHFRPSOLDQFHZLWKH[LVWLQJODZVDQGUHJXODWLRQV
WRLGHQWLI\VDIHW\KD]DUGVWKDWFRXOG
FDXVHRUFRQWULEXWHWRDQDFFLGHQWDOVSLOORUUHOHDVH
DQGWRVXJJHVWSUHYHQWDWLYHPHDVXUHVWR
PLQLPL]HWKHULVNRIDVSLOORUUHOHDVHRIKD]DUGRXVVXEVWDQFHV 6DQ0DWHR&RXQW\+HDOWK

&RPSOLDQFHZLWKWKHVHUHJXODWLRQVZRXOGHQVXUHWKDWWKHULVNRIDFFLGHQWVDQGVSLOOVLV PLQLPL]HGWRWKHPD[LPXPH[WHQWSUDFWLFDEOHGXULQJWKHRSHUDWLRQRIWKHSURSRVHGSURMHFW7KLV LPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW

8.a
November 14, 2022

Packet Pg. 327

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
F
(PLWKD]DUGRXVHPLVVLRQVRUKDQGOHKD]DUGRXVRUDFXWHO\KD]DUGRXVPDWHULDOV VXEVWDQFHV RU KD]DUGRXV ZDVWH ZLWKLQ RQHTXDUWHU PLOH RI DQ H[ LVWLQJ RU SURSRVHGVFKRRO"
1R,PSDFW7KHUHDUHQRVFKRROVZLWKLQRQHTXDUWHUPLOHRIWKHSURMHFWVLWH7KHVFKRROVFORVHVW WRWKHSURMHFWVLWHDUH&HQWUDO0LGGOH6FKRRODQG$UUR\R6FKRROERWKRIZKLFKDUHORFDWHG DSSUR[LPDWHO\PLOHVVRXWKRIWKHSURMHFWVLWH1RLPSDFWZRXOGRFFXU G
%HORFDWHGRQDVLWHZKLFKLVLQF OXGHGRQDOLVWRIKD]DUGRXVPDWHULDOVVLWHV FRPSLOHGSXUVXDQWWR*RYHUQPHQW&RGH6HFWLRQ
DQGDVDUHVXOW
ZRXOGLWFUHDWHDVLJQLILFDQWKD]DUGWRWKHSXEOLFRUWKHHQYLURQPHQW" /HVV7KDQ6LJQLILFDQW,PSDFW7KHSURMHFWVLWHLVQRWLQFOXGHGRQDOLVWRIKD]DUGRXVPDWHULDOV VLWHVFRPSLOHGSXUVXDQWWR*RYHUQPHQW&RGH6HFWLRQ

&DO(3$
$VGHVFULEHG
XQGHUWKLVVHFWLRQV(QYLURQPHQWDO6HWWLQJEDVHGRQWKHGLVWDQFHVWRWKHLGHQWLILHGGDWDEDVH VLWHVUHJLRQDOWRSRJUDSKLFJUDGLHQWDQGILQGLQJVIURP('5LWLVXQOLNHO\WKDWWKHKD]DUGRXV PDWHULDOVVLWHVLQWKHSURMHFWYLFLQLW\SRVHDQHQYLURQPHQWDOULVNWRWKHSURMHFWVLWH (1*(2

7KHUHIRUHWKHULVNRIFRQWDPLQDWLRQRQWKHSURMHFWVLWHIURPQHDUE\KD]DUGRXVPDWHULDOV KDQGOLQJDQGVWRUDJHLVORZ
$VGLVFXVVHGXQGHUWKLVVHFWLRQ¶V(QYLURQPHQWDO6HWWLQJD3KDVH,(6$ZDVFRQGXFWHGWR FKDUDFWHUL]HSRWHQWLDOVRLODQGJURXQGZDWHUFRQWDPLQDQWVDWWKHVLWH :LWKWKHH[FHSWLRQRIDUVHQLFQRQHRIWKHGHWHFWHGPHWDOOLFDQDO\WHVZLWKLQDQDO\]HGVRLO VDPSOHVH[FHHGWKHLUUHVSHFWLYH6DQ)UDQFLVFR%D\5:4&%¶V(6/V&RQFHQWUDWLRQVRIDUVHQLF ZHUHREVHUYHGWREHDERYHWKH5:4&%¶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

x $ZDVWHH[WUDFWLRQWHVW
:(7
EHSHUIRUPHGRQVDPSOLQJORFDWLRQ(%DWDGHSWKRI IRXUIHHW
(%#¶
WRGHWHUPLQHWKHWUDQVSRUWDWLRQDQGGLVSRVDOFODVVLILFDWLRQRI UHSUHVHQWDWLYHVRLOLIRIIKDXORIVRLOPDWHULDOLVQHFHVVDU\ VHHQH[WVHFWLRQ

x $QDVEHVWRVDQGOHDGEDVHGSDLQWVXUYH\VKRXOGEHSHUIRUPHGSU LRUWRUHQRYDWLRQRU GHPROLWLRQRIVWUXFWXUHVWRGHWHUPLQHLIVSHFLDOKDQGOLQJUHTXLUHPHQWVZLOOEHQHFHVVDU\
:DVWH([WUDFWLRQ7HVW
,Q-DQXDU\(1*(2FRQILUPHGWKDWWKHGHWHFWHGFRQFHQWUDWLRQVRIFKURPLXPLQVDPSOH (%#¶DUHFRQVLVWHQWZLWKH[SHFWHGQDWXUDOO\RFFXUULQJEDFNJURXQGFRQFHQWUDWLRQVLQWKH6DQ )UDQFLVFR%D\$UHD
(1*(2D
*LYHQWKHDEVHQFHRIDQDQWKURSRJHQLFFDXVHIRU
HOHYDWHGFKURPLXPLWZDVGHWHUPLQHGWKDWDFRPSDULVRQWRWKHWRWDOFKURPLXPRUFKURPLXP ,,,

(6/ZDVDSSURSULDWHDQGWKHGHWHFWHGFRQFHQWUDWLRQVDUHZHOOEHORZWKHVHDSSURSULDWH
6DPSOLQJORFDWLRQ(%ZDVORFDWHGQRUWKHDVWRIWKHVHOIVWRUDJHIDFLOLW\¶VRIILFHDQGLVGHSLFWHGLQ )LJXUHRIWKH3KDVH,(6$SUHSDUHGE\(1*(2
(1*(2E

8.a
November 14, 2022

Packet Pg. 328

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
VFUHHQLQJOHYHOV$VVXFKWKHGHWHFWHGFKURPLXPFRQFHQWUDWLRQVZHUHGHWHUPLQHGWRQRWSRVH DULVNWRKXPDQKHDOWKRUWKHHQYLURQPHQWDQGWKHH[LVWLQJVRLORQVLWHLVVXLWDEOHIRUUHXVH 6RLOZRXOGVWLOOEHUHTXLUHGXQGHUJRWHVWLQJWRGHWHUPLQHLWVWUDQVSRUWDWLRQDQGGLVSRVDO FODVVLILFDWLRQRQFHDVRLOUHFLSLHQWVLWHLVLGHQWLILHG $VEHVWRVDQG/HDG%DVHG3DLQW6XUYH\
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
$YLVXDOLQVSHFWLRQSUHGHPROLWLRQVXUYH\DQGSRVVLEOHVDPSOLQJZRXOGEHFRQGXFWHGSULRUWR WKHGHPROLWLRQRIRQVLWHEXLOGLQJVWRGHWHUPLQHWKHSUHVHQFHRIDVEHVWRVFRQWDLQLQJPDWHULDOV

$&0V
DQGOHDGEDVHGSDLQW
/%3

x 'XULQJGHPROLWLRQDFWLYLWLHVDOOEXLOGLQJPDWHULDOVFRQWDLQLQ JOHDGEDVHGSDLQWZRXOGEH UHPRYHGLQDFFRUGDQFHZLWK&DO26+$/HDGLQ7LWOH&DOLIRUQLD&RGHRI5HJXODWLRQV

&&5
6HFWLRQLQFOXGLQJHPSOR\HHWUDLQLQJHPSOR\HHDLUPRQLWRULQJDQGGXVW FRQWURO$Q\GHEULVRUVRLOFRQWDLQLQJOHDGEDVHGSDLQWRUFRDWLQJVZRXOGEHGLVSRVHGRI DWODQGILOOVWKDWPHHWDFFHSWDQFHFULWHULDIRUWKHW\SHRIOHDGEHLQJGLVSRVHG x $OOSRWHQWLDOO\IULDEOHDVEHVWRV FRQWDLQLQJPDWHULDOV $&0V
ZRXOGEHUHPRYHGLQ
DFFRUGDQFHZLWK1DWLRQDO(PLVVLRQ6WDQGDUGVIRU$LU3ROOXWLRQ 1(6+$3
JXLGHOLQHV
SULRUWRGHPROLWLRQRUUHQRYDWLRQDFWLYLWLHVWKDWPD\GLVWXUE$&0V$OOGHPROLWLRQDFWLYLWLHV ZRXOGEHXQGHUWDNHQLQDFFRUGDQFHZLWK&DO26+$VWDQGDUGVFRQWDLQHGLQ7LWOH&&5 6HFWLRQ
WRSURWHFWZRUNHUVIURPDVEHVWRVH[SRVXUH
x 0DWHULDOVFRQWDLQLQJPRUHWKDQRQHSHUFHQWDVEHVWRVZRXOGDOVR EHVXEMHFWWR%$$40' UHJXODWLRQV5HPRYDORIPDWHULDOVFRQWDLQLQJPRUHWKDQRQHSHUFHQWDVEHVWRVZRXOGEH UHTXLUHGWREHFRPSOHWHGLQDFFRUGDQFHZLWK%$$40'UHTXLUHPHQWVDQGQRWLILFDWLRQV x %DVHGRQ&DO26+$UXOHVDQGU HJXODWLRQVWKHIROORZLQJFRQGLWLRQVZRXOGEHUHTXLUHGWR OLPLWLPSDFWVWRFRQVWUXFWLRQZRUNHUV
o 3ULRUWRFRPPHQFHPHQWRIGHPROLWLRQDFWLYLWLHVDEXLOGLQJVXUYH\LQFOXGLQJ VDPSOLQJDQGWHVWLQJZRXOGEHFRPSOHWHGWRLGHQWLI\DQGTXDQWLI\EXLOGLQJ PDWHULDOVFRQWDLQLQJOHDGEDVHGSDLQW
o 'XULQJGHPROLWLRQDFWLYLWLHVDOOEXLOGLQJPDWHULDOVFRQWDLQLQJOHDGEDVHGSDLQW VKDOOEHUHPRYHGLQDFFRUGDQFHZLWK&DO26+$/HDGLQ&RQVWUXFWLRQ6WDQGDUG 7LWOH&&56HFWLRQLQFOXGLQJHPSOR\HHWUDLQLQJHPSOR\HHDLU PRQLWRULQJDQGGXVWFRQWURO
x $Q\GHEULVRUVRLOFRQWDLQLQJ OHDGEDVHGSDLQWRUFRDWLQJVZRXOGEHGLVSRVHGRIDW ODQGILOOVWKDWPHHWDFFHSWDQFHFULWHULDIRUWKHW\SHRIZDVWHEHLQJGLVSRVHG &RPSOHWLRQRIWKHDVEHVWRVDQGOHDGEDVHGSDLQWVXUYH\DQGDGKHUHQFHWRWHVWLQJUHTXLUHPHQWV DQGFRPSOLDQFHZLWKH[LVWLQJUHJXODWLRQVZRXOGUHQGHUWKLVLPSDFWOHVVWKDQVLJQLILFDQW

8.a
November 14, 2022

Packet Pg. 329

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
H
)RUDSURMHFWORFDWHGZLWKLQDQDLUSRUWODQGXVHSODQRUZK HUHVXFKDSODQKDV QRW EHHQ DGRSWHG ZLWKLQ WZR PLOHV RI D SXEOLF DLUSRUW RU SXEOLF XVH DLUSRUW ZRXOGWKHSURMHFWUHVXOWLQDVDIHW\KD]DUGRUH[FHVVLYHQRLVHIRUSHRSOHUHVLGLQJ RUZRUNLQJLQWKHSURMHFWDUHD"
/HVV7KDQ6LJQLILFDQW,PSDFW7KH6DQ&DUORV$LUSRUWORFDWHGDSSUR[LPDWHO\PLOHV QRUWKHDVWRIWKHSURMHFWVLWHLVDJHQHUDODYLDWLRQDLUSRUW7KHSURMHFWLVORFDWHGLQWKH6DQ &DUORV$LUSRUW/DQG8VH&RPSDWLELOLW\3ODQ
$/8&3
DUHD
&&$*
$FFRUGLQJWRWKH
$/8&3WKHSURMHFWVLWHLVQRWZLWKLQDSULPDU\IOLJKWSDWKEXWLVZLWKLQ=RQHWKHWUDIILFSDWWHUQ ]RQH5HVHDUFKDQGGHYHORSPHQWRIILFHODQGXVHVDUHLGHQWLILHGDVFRPSDWLEOHODQGXVHVLQWKLV ]RQH8QGHUWKH$/8&3WKHSURMHFWVLWHKDVDQDOORZDEOHKHLJKWRIIHHWDERYHPHDQVHD OHYHO
06/

7KHSURSRVHGEXLOGLQJZRXOGEHDSSUR[LPDWHO\IHHWLQFKHVWDOODQGDWDSSUR[LPDWHO\
IHHW06/SXWWLQJLWVWRWDOKHLJKWDWDSSUR[LPDWHO\
IHHW06/ZHOOEHORZWKHDOORZDEOHKHLJKW
RIIHHW$FFRUGLQJO\WKHSURSRVHGSURMHFWZRXOGQRWVXEMHFWSHRSOHZRUNLQJLQWKHSURMHFW EXLOGLQJRUVWUXFWXUHVWRVXEVWDQWLDOVDIHW\KD]DUGVRUH[FHVVLYHQRLVHDQGWKHSURSRVHGEXLOGLQJ ZRXOGQRWFUHDWHDKD]DUGWRDLUQDYLJDWLRQ7KHSURMHFWUHTXLUHVFRQIRUPDQFHUHYLHZE\&&$* IRUWKH$LUSRUW/DQG8VH&RQVLVWHQF\3ODQ7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW I
,PSDLU LPSOHPHQWDWLRQ RI RU SK\VLFDOO\ LQWHUIHUH ZLWK DQ DGR SWHG HPHUJHQF\ UHVSRQVHSODQRUHPHUJHQF\HYDFXDWLRQSODQ"
1R,PSDFW7KH&LW\RI6DQ&DUORVKDVHVWDEOLVKHGHPHUJHQF\SUHSDUHGQHVVSURFHGXUHVWR UHVSRQGWRDYDULHW\RIQDWXUDODQGPDQPDGHGLVDVWHUVWKDWFRXOGDIIHFWWKHFRPPXQLW\,QWKH HYHQWRIDQHPHUJHQF\WKH&LW\ZRXOGUHVSRQGDFFRUGLQJWRWKH6WDQGDUGL]HG(PHUJHQF\ 0DQDJHPHQW6\VWHP
6(06
GHYHORSHGE\WKH6WDWH7KH6(06V\VWHPHVWDEOLVKHVD KLHUDUFK\RIUHVSRQVHZLWKORFDOJRYHUQPHQWDVWKHILUVWUHVSRQGHUV,I6DQ&DUORVGRHVQRW KDYHVXIILFLHQWUHVRXUFHVWRUHVSRQGWRDGLVDVWHUWKH&RXQW\RI6DQ0DWHRZRXOGOHQG UHVRXUFHV6DQ&DUORVHVWDEOLVKHGDQ(PHUJHQF\2SHUDWLRQV&HQWHUSURJUDPLQ 6DQ
0DWHR&RXQW\6KHULII¶V2IILFHRI(PHUJHQF\6HUYLFHV
2(6
LVUHVSRQVLEOHIRUFRRUGLQDWLQJ
HPHUJHQF\UHVSRQVHLQWKHFRXQW\7KH2(6RSHUDWHVXQGHUD-RLQW3RZHUV$JUHHPHQWZLWK WKHLQFRUSRUDWHGFLWLHVLQWKHFRXQW\
6DQ0DWHR&RXQW\2(6

7KHSURSRVHGSURMHFWZRXOGQRWLQWHUIHUHZLWKWKH&LW\¶VHPHUJHQF\UHVSRQVHSODQRU HPHUJHQF\HYDFXDWLRQSODQ7KHSURSRVHGSURMHFWZRXOGQRWEORFNURDGVDQGZRXOGQRWLPSHGH HPHUJHQF\DFFHVVWRVXUURXQGLQJSURSHUWLHVRUQHLJKERUKRRGV7KHSURMHFWZRXOGIROORZDOORI WKH&LW\¶VFRQVWUXFWLRQEHVWPDQDJHPHQWSUDFWLFHVZKLFKLQFOXGHWKDWYHKLFOHSDUNLQJDQG VWRUDJHRFFXULQDGHVLJQDWHGRQVLWHDUHD7KHSURMHFWVLWHSODQVLQFOXGHSODQVHPHUJHQF\ YHKLFOHDFFHVV1RLPSDFWZRXOGRFFXU
J
([SRVHSHRSOHRUVWUXFWXUHVHLWKHUGLUHFWO\RULQGLUHFWO\ WRDVLJQLILFDQWULVNRI ORVVLQMXU\RUGHDWKLQYROYLQJZLOGODQGILUHV"
1R,PSDFW7KHSURMHFWVLWHLVGHYHORSHGZLWKH[LVWLQJVHOIVWRUDJHIDFLOLW\VWUXFWXUHVDQG DVVRFLDWHGSDYHGSDUNLQJORW7KHVLWHLVVXUURXQGHGE\EXLOWRXWXUEDQXVHVDQGLVQRWPDSSHG LQD)LUH+D]DUG6HYHULW\=RQHE\WKH&DOLIRUQLD'HSDUWPHQWRI)RUHVWU\DQG)LUH3UHYHQWLRQ

&$/),5(
7KHSURSRVHGSURMHFWZRXOGQRWVXEMHFWSHRSOHRUVWUXFWXUHVWRZLOGILUH KD]DUGV1RLPSDFWZRXOGRFFXU

5HIHUHQFHV
&DOLIRUQLD'HSDUWPHQWRI)RUHVWU\DQG)LUH3URWHFWLRQ
&$/),5(
&DOLIRUQLD)LUH+D]DUG
6HYHULW\=RQH9LHZHU$FFHVVHG)HEUXDU\DW
KWWSV
JLVGDWDFDJRYGDWDVHWV
GI
FFII

8.a
November 14, 2022

Packet Pg. 330

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
&DOLIRUQLD(QYLURQPHQWDO3URWHFWLRQ$JHQF\
&DO(3$
&RUWHVH/LVW'DWD5HVRXUFHV
$FFHVVHG)HEUXDU\DWKWWSV
FDOHSDFDJRYVLWHFOHDQXSFRUWHVHOLVW
&LW\&RXQW\$VVRFLDWLRQRI*RYHUQPHQWVRI6DQ0DWHR&RXQW\ &&$*
&RPSUHKHQVLYH
$LUSRUW/DQG8VH&RPSDWLELOLW\3ODQIRUWKH(QYLURQVRI6DQ&DUORV$LUSRUW2FWREHU
'HSDUWPHQWRI7R[LF6XEVWDQFHV&RQWURO
'76&
(QYLUR6WRU³/LVWRI+D]DUGRXV:DVWH
DQG6XEVWDQFHVVLWHVIURP'HSDUWPHQWRI7R[LF6XEVWDQFHV&RQWURO '76&
(QYLUR6WRU
GDWDEDVH´$FFHVVHG)HEUXDU\DW
KWWSV
ZZZHQYLURVWRUGWVFFDJRYSXEOLFVHDUFK"FPG VHDUFK UHSRUWW\SH &257(6( V LWHBW\SH &6,7(6)8'6 VWDWXV $&7%./*&20 UHSRUWWLWOH +$=$5'286:$67($ 1'68%67$1&(66,7(/,67&257(6(

(1*(2,QGXVWULDO5RDG6DQ&DUORV&DOLIRUQLD0RGLILHG3KDVH,(QYLURQPHQWDO6LWH $VVHVVPHQW3URMHFW1R-DQXDU\ BBBBBBD&RPPHQWDU\RQ(QYLURQPHQWDO6DPSOLQJ,QGXVWULDO5RDG6DQ&DUORV &DOLIRUQLD3URMHFW1R-DQXDU\ BBBBBBE3HUVRQDO&RPPXQLFDWLRQ(PDLOEHWZHHQ3DWULFN/DP(1*(2DQG3DXOD 0DJJLQHWWL5H
,QGXVWULDO±(QYLURQPHQWDO5HSRUWV-XQH 6DQ0DWHR&RXQW\6KHULII¶V2IILFHRI(PHUJHQF\6HUYLFHV 2(6
)LUVW5HYLVHGDQG
5HVWDWHG-RLQW([HUFLVHRI3RZHUV$JUHHPHQW6DQ0DWHR&RXQW\2SHUDWLRQDO$UHD (PHUJHQF\6HUYLFHV2UJDQL]DWLRQ$FFHVVHG)HEUXDU\
DW
KWWSV
KVGVPFVKHULIIFRPVLWHVGHIDXOWILOHVGRZQORDGDEOHV2FWREHU -3$SGI
6DQ0DWHR&RXQW\(QYLURQPHQWDO+HDOWK'HSDUWPHQW+HDOWK 6DQ0DWHR&RXQW\+HDOWK

&HUWLILHG8QLILHG3URJUDP$JHQF\
&83$
$FFHVVHG)HEUXDU\DW
KWWSV
ZZZVPFKHDOWKRUJKD]DUGRXVPDWHULDOVFXSD
6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG
6WDWH:DWHU%RDUG
*HR7UDFNHU³/LVWRI/HDNLQJ
8QGHUJURXQG6WRUDJH7DQN6LWHVIURPWKH6WDWH:DWHU%RDUG¶V*HR7UDFNHUGDWDEDVH´ $FFHVVHG)HEUXDU\DW
KWWSV
JHRWUDFNHUZDWHUERDUGVFDJRYVHDUFK"&0' VHDUFK FDVHBQXPEHU EXVLQHVVB QDPH PDLQBVWUHHWBQDPH FLW\ ]LS FRXQW\ 6,7(B7<3( /8)7 RLOILHOG 67$78 6 %5$1&+ 0$67(5B%$6( 6HDUFK 6HDUFK

8.a
November 14, 2022

Packet Pg. 331

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
+<'52/2*<$1':$7(548$/,7<

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
9LRODWHDQ\ZDWHUTXDOLW\VWDQGDUGVRUZDVWH
GLVFKDUJHUHTXLUHPHQWVRURWKHUZLVHVXEVWDQWLDOO\
GHJUDGHVXUIDFHRUJURXQGZDWHUTXDOLW\"

E
6XEVWDQWLDOO\GHFUHDVHJURXQGZDWHUVXSSOLHV
RULQWHUIHUHVXEVWDQWLDOO\ZLWKJURXQGZDWHU
UHFKDUJH
VXFKWKDWWKHSURMHFWPD\LPSHGH
VXVWDLQDEOHJURXQGZDWHUPDQDJHPHQWRIWKH
EDVLQ"

F
6XEVWDQWLDOO\DOWHUWKHH[LVWLQJGUDLQDJHSDWWHUQ
RIWKHVLWHRUDUHDLQFOXGLQJWKURXJKWKH
DOWHUDWLRQRIWKHFRXUVHRIDVWUHDPRUULYHURU
WKURXJKWKHDGGLWLRQRILPSHUYLRXVVXUIDFHVLQD
PDQQHUZKLFKZRXOG

L
5HVXOWLQVXEVWDQWLDOHURVLRQRUVLOWDWLRQRQ
RURIIVLWH

LL
6XEVWDQWLDOO\LQFUHDVHWKHUDWHRUDPRXQWRI
VXUIDFHUXQRIILQDPDQQHUZKLFKZRXOGUHVXOW
LQIORRGLQJRQRURIIVLWH

LLL
&UHDWHRUFRQWULEXWHUXQRIIZDWHUZKLFK
ZRXOGH[FHHGWKHFDSDFLW\RIH[LVWLQJRU
SODQQHGVWRUPZDWHUGUDLQDJHV\VWHPVRU
SURYLGHVXEVWDQWLDODGGLWLRQDOVRXUFHVRI
SROOXWHGUXQRII
RU

LY
,PSHGHRUUHGLUHFWIORRGIORZV"
G
,QIORRGKD]DUGWVXQDPLRUVHLFKH]RQHVULVN
UHOHDVHRISROOXWDQWVGXHWRSURMHFWLQXQGDWLRQ"

H
&RQIOLFWZLWKRUREVWUXFWLPSOHPHQWDWLRQRID
ZDWHUTXDOLW\FRQWUROSODQRUVXVWDLQDEOH
JURXQGZDWHUPDQDJHPHQWSODQ"

(QYLURQPHQWDO6HWWLQJ
6LWHWRSRJUDSK\LVUHODWLYHO\IODWZLWKDVORSHRISHUFHQWDQGVXUIDFHHOHYDWLRQVRI DSSUR[LPDWHO\QLQHIHHWDERYHPHDQVHDOHYHO
06/
DFURVVWKHVLWH
/DQJDQ(QJLQHHULQJDQG
(QYLURQPHQWDO$VVRFLDWHV

7KHSURMHFWVLWHLVLQWKHZDWHUVKHGRI6WHLQEHUJHU6ORXJKGRZQVWUHDPRIERWKWKH%HOPRQW &UHHNDQG3XOJDV&UHHNZDWHUVKHGV
7LOOHU\
7KHSURMHFWVLWHLVERUGHUHGRQWKHVRXWK
DQGHDVWE\DQHQJLQHHUHGQDWXUDOERWWRPFKDQQHOLQWKH&DOWUDQVULJKWRIZD\WKDWFROOHFWV VWRUPZDWHUIURP6DQ&DUORVDQGHPSWLHVLQWR3KHOSV6ORXJKDSSUR[LPDWHO\PLOHV QRUWKHDVWRIWKHSURMHFWVLWH3KHOSV6ORXJKHQWHUVDODJRRQEHIRUHEHLQJUHOHDVHGWR 6WHLQEHUJHU6ORXJKWKURXJKDWLGHJDWH'XULQJWKH)HEUXDU\VLWHYLVLWWKHFKDQQHOKDG IORZLQJZDWHU7KHVLGHVORSHRIWKHFKDQQHOEHKLQGRQHRIWKHVLWH¶VH[LVWLQJEXLOGLQJVKDV H[SHULHQFHGRQJRLQJHURVLRQ
/DQJDQ(QJLQHHULQJDQG(QYLURQPHQWDO$VVRFLDWHV

8.a
November 14, 2022

Packet Pg. 332

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KH&LW\RI6DQ&DUORVDQGWKHSURMHFWVLWHDUHORFDWHGZLWKLQWKH6DQWD&ODUD9DOOH\ *URXQGZDWHU%DVLQ6DQ0DWHR3ODLQ6XEEDVLQDVLGHQWLILHGE\WKH6DQ)UDQFLVFR5HJLRQDO :DWHU4XDOLW\&RQWURO%RDUG
5:4&%

7KHSURMHFWVLWHLVORFDWHGIXOO\ZLWKLQIORRG]RQH$(DVPDSSHGE\WKH)HGHUDO(PHUJHQF\ 0DQDJHPHQW$JHQF\
)(0$
=RQH$(FRUUHVSRQGVWRDKLJKULVNIORRGDUHDZLWKDWOHDVWD SHUFHQWDQQXDOFKDQFHRIIORRGLQJZLWKDIORRGEDVHHOHYDWLRQRIIHHW )(0$

5HJXODWRU\6HWWLQJ
,QDGGLWLRQWR&(4$RWKHUIHGHUDODQGVWDWHODZVDSSO\WRWKHK\GURORJ\DQGZDWHUTXDOLW\ DVVRFLDWHGZLWKWKHSURSRVHGSURMHFW(DFKRIWKHVHODZVLVLGHQWLILHGDQGGLVFXVVHGEHORZ )HGHUDO&OHDQ:DWHU$FW
7KH&OHDQ:DWHU$FW
&:$
LVWKHSULPDU\IHGHUDOOHJLVODWLRQJRYHUQLQJZDWHUTXDOLW\DQGIRUPV WKHEDVLVIRUVHYHUDOVWDWHDQGORFDOODZVWKURXJKRXWWKHQDWLR Q7KHREMHFWLYHRIWKH&:$LV³WR UHVWRUHDQGPDLQWDLQWKHFKHPLFDO SK\VLFDODQGELRORJLFDOLQW HJULW\RIWKH1DWLRQ¶VZDWHUV´ ,PSRUWDQWDQGDSSOLFDEOHVHFWLRQVRIWKH$FWDUH

x 6HFWLRQRIWKHIHGHUDO&OHDQ:DWHU$FWUHTXLUHVVWDWHVWR GHYHORSZDWHUTXDOLW\ VWDQGDUGV WR SURWHFW WKH EHQHILFLDO XVHV RI UHFHLYLQJ ZDWHUV ,Q DFFRUGDQFH ZLWK &DOLIRUQLD¶V3RUWHU&RORJQH$FWWKH5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUGV 5:4&%V
RI
WKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG
6:5&%
DUHUHTXLUHGWRGHYHORSZDWHUTXDOLW\
REMHFWLYHVWKDWHQVXUHWKHLUUH JLRQPHHWVWKHUHTXLUHPHQWVRI6 HFWLRQRIWKH&OHDQ :DWHU$FW
x 6HFWLRQHVWDEOLVKHVWKH1DW LRQDO3ROOXWDQW'LVFKDUJH(OLPLQDWLRQ6\VWHP 13'(6

ZKLFKLVDSHUPLWWLQJV\VWHPIRUWKHGLVFKDUJHRIDQ\SROOXWDQW H[FHSWIRUGUHGJHRUILOO

PDWHULDO
LQWRZDWHUVRIWKH86,Q&DOLIRUQLDWKLVSHUPLWSU RJUDPLVDGPLQLVWHUHGE\WKH 5:4&%VDQGLVGLVFXVVHGLQGHWDLOEHORZ
1DWLRQDO3ROOXWDQW'LVFKDUJH(OLPLQDWLRQ6\VWHP
7KH&:$KDVQDWLRQDOO\UHJXODWHGWKHGLVFKDUJHRISROOXWDQWVWRWKHZDWHUVRIWKH86IURPDQ\ SRLQWVRXUFHVLQFH
,Q
DPHQGPHQWVWRWKH&:$DGGHG6 HFWLRQ
S
ZKLFK
HVWDEOLVKHG D IUDPHZRUN IRU UHJXODWLQJ QRQSRLQW VRXUFHVWRUP ZDWHU GLVFKDUJHV XQGHU WKH 13'(67KH13'(6*HQHUDO&RQVWUXFWLRQ3HUPLW
*&3
UHTXLUHPHQWVDSSO\WRFOHDULQJJUDGLQJ
DQGGLVWXUEDQFHVWRWKHJURXQGVXFKDVH[FDYDWLRQ&RQVWUXFWLRQDFWLYLWLHVRQRQHRUPRUHDFUHV DUHVXEMHFWWRDVHULHVRISHUPLWWLQJUHTXLUHPHQWVFRQWDLQHGLQ WKH13'(6*&37KH*&3 LQFOXGHVUHTXLUHPHQWVIRUWUDLQLQJLQVSHFWLRQVUHFRUGNHHSLQJ DQGIRUSURMHFWVRIFHUWDLQULVN OHYHOVPRQLWRULQJ7KHJHQHUDO SXUSRVHRIWKHUHTXLUHPHQWVLV WRPLQLPL]HWKHGLVFKDUJHRI SROOXWDQWVDQGWRSURWHFWEHQHILFLDOXVHVDQGUHFHLYLQJZDWHUV IURPWKHDGYHUVHHIIHFWVRI FRQVWUXFWLRQUHODWHGVWRUPZDWHUGLVFKDUJHV
7KH*&3UHTXLUHVWKHSUHSDUDWLRQDQGLPSOHPHQWDWLRQRID6WRUPZDWHU3ROOXWLRQ3UHYHQWLRQ3ODQ

6:333
WKDWLQFOXGHV%HVW0DQDJHPHQW3UDFWLFHV
%03V
WREHLP SOHPHQWHGGXULQJ3URMHFW
FRQVWUXFWLRQ7KHSURMHFWVSRQVRULVDOVRUHTXLUHGWRVXEPLWD1RWLFHRI,QWHQW 12,
ZLWKWKH6WDWH
:DWHU5HVRXUFHV&RQWURO%RDUG'LYLVLRQRI:DWHU4XDOLW\7KH12,LQFOXGHVJHQHUDOLQIRUPDWLRQ RQWKHW\SHVRIFRQVWUXFWLRQDFWLYLWLHVWKDWZRXOGRFFXURQWKHVLWH 3RUWHU&RORJQH:DWHU4XDOLW\&RQWURO$FW
7KH6WDWH¶V3RUWHU&RORJQH:DWHU4XDOLW\&RQWURO$FWDVUHYLVH GLQ'HFHPEHU &DOLIRUQLD
:DWHU&RGH6HFWLRQV

SURYLGHVIRUSURWHFWLRQRIWKHTXDOLW\RIDOOZDWHUVLQWKH6WDWH RI&DOLIRUQLDIRUXVHDQGHQMR\PHQWE\WKHSHRSOHRI&DOLIRUQLD,WIXUWKHUSURYLGHVWKDWDOODFWLYLWLHV WKDWPD\DIIHFWWKHTXDOLW\RIZDWHUVRIWKHVWDWHVKDOOEHUHJ XODWHGWRREWDLQWKHKLJKHVWZDWHU TXDOLW\WKDWLVUHDVRQDEOHFRQVLGHULQJDOOGHPDQGVEHLQJPDGHDQGWREHPDGHRQWKRVHZDWHUV

8.a
November 14, 2022

Packet Pg. 333

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
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
6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG
&UHDWHGE\WKH&DOLIRUQLD6WDWH/HJLVODWXUHLQ
WKH6WDWH :DWHU5HVRXUFHV&RQWURO%RDUG
KROGVDXWKRULW\RYHUZDWHUUHVRXUFHVDOORFDWLRQDQGZDWHUTXDOLW\SURWHFWLRQZLWKLQWKH6WDWH7KH ILYHPHPEHU6WDWH:DWHU5HVRXUFHV&RQWURO%RDUGDOORFDWHVZDWHUULJKWVDGMXGLFDWHVZDWHUULJKW GLVSXWHVGHYHORSVVWDWHZLGHZDWHUSURWHFWLRQSODQVHVWDEOLVKH VZDWHUTXDOLW\VWDQGDUGVDQG JXLGHVWKHQLQH5:4&%V7KHPLVVLRQRIWKH6WDWH:DWHU5HVRXUFH V&RQWURO%RDUGLVWR ³SUHVHUYHHQKDQFHDQGUHVWRUHWKHTXDOLW\RI&DOLIRUQLD¶VZDW HUUHVRXUFHVDQGHQVXUHWKHLU SURSHUDOORFDWLRQDQGHIILFLHQWXVHIRUWKHEHQHILWRISUHVHQWDQGIXWXUHJHQHUDWLRQV´ 6DQ)UDQFLVFR%D\5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG 7KH&LW\RI6DQ&DUORVLVXQGHUWKHMXULVGLFWLRQRIWKH6DQ)UDQFLVFR%D\5:4&%$V PHQWLRQHGDERYHDFWLYLWLHVWKDWGLVWXUERQHRUPRUHDFUHVRIVRLO LQFOXGLQJDOOFRQVWUXFWLRQ

GLVWXUEDQFH
DUHUHTXLUHGWRREWDLQFRYHUDJHXQGHUWKH*HQHUDO3HUPLWIRU'LVFKDUJHVRI6WRUP :DWHU$VVRFLDWHGZLWK&RQVWUXFWLRQ$FWLYLW\
&RQVWUXFWLRQ*HQHUDO3HUPLW

':4

&RQVWUXFWLRQDFWLYLW\VXEMHFWWRWKLVSHUPLWLQFOXGHVFOHDULQJJUDGLQJDQGGLVWXUEDQFHVWRWKH JURXQGVXFKDVVWRFNSLOLQJRUH[FDYDWLRQEXWGRHVQRWLQFOXGHUHJXODUPDLQWHQDQFHDFWLYLWLHV 7KH&RQVWUXFWLRQ*HQHUDO3HUPLWUHTXLUHVWKHGHYHORSPHQWDQGLPSOHPHQWDWLRQRID6:333 7KH6:333PXVWOLVW%03VWKHGLVFKDUJHUZLOOXVHWRSURWHFWVWRUPZDWHUUXQRIIDQGWKH SODFHPHQWRIWKRVH%03V)XUWKHUPRUHWKH6:333PXVWFRQWDLQDYLVXDOPRQLWRULQJSURJUDP
DFKHPLFDOPRQLWRULQJSURJUDPIRUQRQYLVLEOHSROOXWDQWVWREHLPSOHPHQWHGLIWKHUHLVDIDLOXUH RI%03V
DQGDVHGLPHQWPRQLWRULQJSODQLIWKHVLWHGLVFKDUJHVGLUHFWO\WRDZDWHUERG\OLVWHGRQ WKH
G
OLVWIRUVHGLPHQW6HFWLRQ$RIWKH&RQVWUXFWLRQ*HQHUDO3HUPLWGHVFULEHVWKH HOHPHQWVWKDWPXVWEHFRQWDLQHGLQD6:333
1DWLRQDO)ORRG,QVXUDQFH3URJUDP
7KH)HGHUDO(PHUJHQF\0DQDJHPHQW$JHQF\
)(0$
HVWDEOLVKHGWKH1DWLRQDO)ORRG
,QVXUDQFH3URJUDP
1),3
WRUHGXFHLPSDFWVRIIORRGLQJRQSULYDWHDQGSXEOLFSURSHUWLHV7KH SURJUDPSURYLGHVVXEVLGL]HGIORRGLQVXUDQFHWRFRPPXQLWLHVWKDWFRPSO\ZLWK)(0$UHJXODWLRQV SURWHFWLQJGHYHORSPHQWLQIORRGSODLQV$VSDUWRIWKHSURJUDP)(0$SXEOLVKHV)ORRG,QVXUDQFH 5DWH0DSV
),50V
WKDWLGHQWLI\6SHFLDO)ORRG+D]DUG$UHDV
6)+$V
$Q6)+$LVDQDUHDWKDW
ZRXOGEHLQXQGDWHGE\WKHRQHSHUFHQWDQQXDOFKDQFHIORRGZKLFKLVDOVRUHIHUUHGWRDVWKH EDVHIORRGRU\HDUIORRG
6DQ0DWHR&RXQW\ZLGH:DWHU3ROOXWLRQ&RQWURO3UHYHQWLRQ3URJUDP 7KH&LW\RI6DQ&DUORVSDUWLFLSDWHVLQWKH6DQ0DWHR&RXQW\ZLGH :DWHU3ROOXWLRQ3UHYHQWLRQ 3URJUDP
60&:333
DSDUWQHUVKLSRIWKH&LW\&RXQW\$VVRFLDWLRQ RI*RYHUQPHQWV &&$*

HDFKLQFRUSRUDWHGFLW\DQGWRZQLQ WKHFRXQW\DQGWKH&RXQW\R I6DQ0DWHRZKLFKVKDUHD FRPPRQ1DWLRQDO3ROOXWDQW'LVFKDUJH(OLPLQDWLRQ6\VWHP 13'(6
SHUPLW7KH)HGHUDO&OHDQ
:DWHU$FWDQGWKH&DOLIRUQLD3RUWHU&RORJQH:DWHU4XDOLW\&RQWU RO$FWUHTXLUHWKDWODUJHXUEDQ DUHDVGLVFKDUJLQJVWRUPZDWHULQWRWKH6DQ)UDQFLVFR%D\RUWKH 3DFLILF2FHDQKDYHDQ13'(6
SHUPLWWRSUHYHQWKDUPIXOSROOXWDQWVIURPEHLQJGXPSHGRUZDVKHGE\VWRUPZDWHUUXQRIILQWRWKH VWRUPZDWHUV\VWHPWKHQGLVFKDUJHGLQWRORFDOZDWHUERGLHV

8.a
November 14, 2022

Packet Pg. 334

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KH0XQLFLSDO5HJLRQDO3HUPLWRXWOLQHVWKH6WDWH
VUHTXLUHPHQWVIRUPXQLFLSDODJHQFLHVLQ6DQ
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
VLPSOHPHQWDWLRQ
7KH0XQLFLSDO5HJLRQDO6WRUPZDWHU13'(63HUPLW
053
LVVXHGE\WKH6DQ)UDQFLVFR%D\
5:4&%
2UGHU1R5

IRU6DQ0DWHR&RXQW\LQFOXGHVWKH&LW\RI6DQ&DUORV
XQGHULWVFRYHUDJH8QGHU3URYLVLRQ&RIWKH053QHZGHYHORSPHQWDQGUHGHYHORSPHQW SURMHFWVDUHUHTXLUHGWRLPSOHPHQWDSSURSULDWHVRXUFHFRQWUROVLWHGHVLJQDQGVWRUPZDWHU WUHDWPHQWPHDVXUHV7KH6DQ0DWHR&RXQW\ZLGH:DWHU3ROOXWLRQ3UHYHQWLRQ3URJUDP

60&:333
LVDSDUWQHUVKLSRIHDFKLQFRUSRUDWHGFLW\DQGWRZQZLWKLQ6DQ0DWHR&RXQW\6DQ 0DWHR&RXQW\DQGWKH&&$*ZKLFKDOOVKDUHWKH0537KH60&:333UHTXLUHVVXEPLWWDORI WKH&DQG&'HYHORSPHQW5HYLHZ&KHFNOLVWIRUQHZGHYHORSPHQWDQGUHGHYHORSPHQW SURMHFWVWRHQVXUHWKDWWKHDSSURSULDWHFRQVWUXFWLRQEHVWPDQDJHPHQWSUDFWLFHV %03V
VRXUFH
FRQWUROPHDVXUHVORZLPSDFWGHYHORSPHQW
/,'
VLWHGHVLJQPHDVXUHVDQGVWRUPZDWHU
WUHDWPHQWPHDVXUHVZLOOEHLPSOHPHQWHG
6DQ&DUORV0XQLFLSDO&RGH
&KDSWHURIWKH6DQ&DUORV0XQLFLSDO&RGH6WRUPZDWHU0DQDJHPHQWDQG'LVFKDUJH &RQWUROHVWDEOLVKHVUHTXLUHPHQWVWRSURWHFWDQGHQKDQFHWKHZDWHUTXDOLW\RIWKH&LW\¶V ZDWHUFRXUVHVZDWHUERGLHVDQGZHWODQGVLQDPDQQHUSXUVXDQWWRDQGFRQVLVWHQWZLWKWKH &OHDQ:DWHU$FW&KDSWHUHQIRUFHVWKHWHQHWVRIWKH&OHDQ:DWHU$FWE\
(OLPLQDWLQJQRQVWRUPZDWHUGLVFKDUJHVWRWKHPXQLFLSDOVHSDUDWHVWRUPVHZHU
&RQWUROOLQJWKHGLVFKDUJHWRPXQLFLSDOVHSDUDWHVWRUPVHZHUVIURPVSLOOVGXPSLQJRU GLVSRVDORIPDWHULDOVRWKHUWKDQVWRUPZDWHU

5HGXFLQJSROOXWDQWVLQVWRUPZDWHUGLVFKDUJHVWRWKHPD[LPXPH[WHQWSUDFWLFDEOH &KDSWHUVHWVPLQLPXPVWDQGDUGVIRUWKHUHGXFWLRQRISROOXWDQWVLQVWRUPZDWHU WKHVH
UHTXLUHPHQWVLQFOXGHVWDQGDUGVIRUSDUNLQJORWVDQGVLPLODUVWUXFWXUHVEHVWPDQDJHPHQW SUDFWLFHVIRUQHZGHYHORSPHQWVDQGUHGHYHORSPHQWVDQGFRPSOLDQFHZLWKEHVWPDQDJHPHQW SUDFWLFHVJXLGHOLQHVRUUHTXLUHPHQWVWKDWKDYHEHHQDGRSWHGE\WKH&LW\IRUDVSHFLILFDFWLYLW\ RSHUDWLRQRUIDFLOLW\
&KDSWHURIWKH6DQ&DUORV0XQLFLSDO&RGHVHWVIRUWKFRQVWUXFWLRQUHTXLUHPHQWVIRU GHYHORSPHQWWKDWZRXOGPLQLPL]HIORRGKD]DUGULVNVLQFOXGLQJDQFKRULQJHOHYDWLRQDQGIORRG SURRILQJDQGVWDQGDUGVIRUXWLOLWLHVVXEGLYLVLRQVUHVLGHQWLDODQGQRQUHVLGHQWLDOFRQVWUXFWLRQ 1RQUHVLGHQWLDOVWUXFWXUHVFDQHLWKHUEHHOHYDWHGDERYHWKHEDVHIORRGHOHYDWLRQRUEH IORRGSURRIHGEHORZWKHEDVHIORRGOHYHO&RPSOLDQFHZLWK6HFWLRQUHTXLUHVD GHYHORSPHQWSHUPLWDSSURYDOIURPWKH)ORRGSODLQ$GPLQLVWUDWRUIRUWKH&LW\RI6DQ&DUORV LH
WKH%XLOGLQJ2IILFLDO
WKDWSURYLGHVSODQVGUDZQWRVFDOHVKRZLQJWKHQDWXUHORFDWLRQ GLPHQVLRQVDQGHOHYDWLRQRIWKHDUHDLQTXHVWLRQ
WKHORFDWLRQDQGHOHYDWLRQRIH[LVWLQJRU
SURSRVHGVWUXFWXUHVILOOVWRUDJHRIPDWHULDODQGGUDLQDJHIDFLOLWLHV DQGIORRGSURRILQJ
SURYLVLRQV

8.a
November 14, 2022

Packet Pg. 335

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
6DQ&DUORV*HQHUDO3ODQ
7KH6DQ&DUORV*HQHUDO3ODQZDVDGRSWHGLQ
7KHIROORZLQJSROLFLHVIURPWKH
*HQHUDO3ODQ¶V(QYLURQPHQWDO0DQDJHPHQW(OHPHQWDUHUHOHYDQWWRK\GURORJ\DQGZDWHU TXDOLW\
x 3ROLF\(0
5HGXFHWKHGLVFKDUJHRIWR[LFPDWHULDOVLQWRWKHFLW\¶VVDQLWDU\VHZHU DQGVWRUPZDWHUFROOHFWLRQV\VWHPE\SURPRWLQJWKHXVHRI%HVW0DQDJHPHQW3UDFWLFHV

%03V

x 3ROLF\(0
3URPRWHWKHXVHRIOHVVWR[LFKRXVHKROGDQGFRPPHUFLDOFOHDQLQJ PDWHULDOV
x 3ROLF\(0
3URPRWHWKHFRQVHUYDWLRQDQGHIILFLHQWXVHRIZDWHULQQHZDQGH[LVWLQJ UHVLGHQFHVDQGE\FRPPHUFLDODQGLQGXVWULDOFRQVXPHUV x 3ROLF\(0
5HF\FOHGZDWHUGLVWULEXWLRQV\VWHP
SXUSOHSLSH
VKRXOGEHXVHGIRU
ODQGVFDSLQJDQGRWKHUQRQSRWDEOHZDWHUXVHVIRUUHVLGHQWLDOFRPPHUFLDODQGLQGXVWULDO FXVWRPHUVZKHUHWHFKQLFDOO\DQGILQDQFLDOO\IHDVLEOH x 3ROLF\(0
(QFRXUDJHVLWHGHVLJQVWKDWPDQDJHWKHTXDQWLW\DQGTXDOLW\RIVWRUP ZDWHUUXQRII
x 3ROLF\(0
5HTXLUHWKHHYDOXDWLRQRISRWHQWLDOJURXQGZDWHUGHSOHWLRQWKDWFRXOG RFFXUIURPQHZGHYHORSPHQWWKURXJKGHZDWHULQJ
'LVFXVVLRQ
:RXOGWKHSURMHFW

D
9LRODWHDQ\ZDWHUTXDOLW\VWDQGDUGVRUZDVWHGLVFKDUJHUHTXL UHPHQWVRU RWKHUZLVHVXEVWDQWLDOO\GHJUDGHVXUIDFHRUJURXQGZDWHUTXDOLW\" /HVV7KDQ6LJQLILFDQW,PSDFW3RWHQWLDOLPSDFWVWRZDWHUTXDOLW\GXULQJWKHFRQVWUXFWLRQDQG RSHUDWLRQSKDVHVRIWKHSURSRVHGSURMHFWDUHGLVFXVVHGEHORZ 3URMHFW&RQVWUXFWLRQ
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±&RQVWUXFWLRQ6WRUPZDWHU DQGDWWDFKWKH6DQ0DWHR&RXQW\ZLGH6:333¶VFRQVWUXFWLRQEHVWPDQDJHPHQWSUDFWLFHVSODQ VKHHWWRSURMHFWSODQVDQGKDVGRQHVRDVRIWKHSODQVKHHWVGDWHG'HFHPEHU VHH
6KHHW&
7KHSURMHFWFRQWUDFWRUZRXOGEHUHTXLUHGWRLPSOHPHQWWKHDSSOLFDEOH%03V LGHQWLILHGRQWKDWVKHHW
,QDGGLWLRQWKHSURMHFWPXVWFRPSO\ZLWKWKH&LW\RI6DQ&DUORV¶H[LVWLQJUHJXODWRU\ UHTXLUHPHQWVLQFOXGLQJ&KDSWHU6WRUPZDWHU0DQDJHPHQWDQG'LVFKDUJH&RQWUROZKLFK LVLQWHQGHGWRUHGXFHSROOXWDQWVLQVWRUPZDWHUGLVFKDUJHVWRWKHPD[LPXPH[WHQWSUDFWLFDEOH

8.a
November 14, 2022

Packet Pg. 336

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
$GKHUHQFHWRDSSOLFDEOHZDWHUTXDOLW\UHJXODWLRQVLQFOXGLQJWKHDFWLYHLPSOHPHQWDWLRQRI FRQVWUXFWLRQVWRUPZDWHU%03VDQGFRPSOLDQFHZLWKWKH&LW\RI6DQ&DUORV0XQLFLSDO&RGH ZRXOGHQVXUHWKDWZDWHUTXDOLW\VWDQGDUGVDUHQRWYLRODWHGGXULQJFRQVWUXFWLRQ7KHUHIRUH SRWHQWLDOLPSDFWVWRZDWHUTXDOLW\GXULQJSURMHFWFRQVWUXFWLRQZRXOGEHOHVVWKDQVLJQLILFDQW 3URMHFW2SHUDWLRQ
7KHSURSRVHGSURMHFWZRXOGLQFUHDVHWKHDPRXQWRISHUYLRXVVXUIDFHDUHDDWWKHSURMHFWVLWH FRPSDUHGWRH[LVWLQJFRQGLWLRQV7KHH[LVWLQJSURMHFWVLWHLVDOPRVWHQWLUHO\FRYHUHGZLWK LPSHUYLRXVVXUIDFHV
DSDYHGSDUNLQJORWDQGEXLOGLQJV
7KHSURMHFWVLWHLQFOXGHVDSSUR[LPDWHO\
DFUHV
VTXDUHIHHW
RILPSHUYLRXVVXUIDFHDUHDDQGOLWWOHWRQRSHUYLRXVVXUIDFH DUHD7KHSURSRVHGSURMHFWLQFOXGHVDSSUR[LPDWHO\DFUHV

VTXDUHIHHW
RI
LPSHUYLRXVVXUIDFHDUHDDQGDSSUR[LPDWHO\DFUHV

VTXDUHIHHW
RISHUYLRXVVXUIDFH
DUHD
%.)(QJLQHHUV
$VVXFKWKHSURMHFWZRXOGGHFUHDVHWKHDPRXQWRILPSHUYLRXV VXUIDFHDUHDRULQFUHDVHWKHDPRXQWRISHUYLRXVDUHDDWWKHVLWHE\DSSUR[LPDWHO\DFUHV

VTXDUHIHHW
FRPSDUHGWRH[LVWLQJFRQGLWLRQV7KLVGHFUHDVHLQLPSHUYLRXVVXUIDFHDUHD ZRXOGEHDUHVXOWRIWKHQHZODQGVFDSHGDUHDV
$OWKRXJKDQLQFUHDVHLQWKHDPRXQWRISHUYLRXVDUHDSURYLGHGDWWKHSURMHFWVLWHZRXOGUHGXFH WKHDPRXQWRIZDWHUUXQRIIIURPWKHVLWHWKHSURSRVHGSURMHFWFRXOGVWLOOLPSDFWZDWHUTXDOLW\ GXULQJWKHRSHUDWLRQDOSKDVHRIWKHSURMHFW5XQRIIIURPFRPPHUFLDOSURSHUWLHVDQGURDGZD\V W\SLFDOO\FRQWDLQRLOVJUHDVHIXHODQWLIUHH]HE\SURGXFWVRIFRPEXVWLRQ VXFKDVOHDG
FDGPLXPQLFNHODQGRWKHUPHWDOV
DVZHOODVIHUWLOL]HUVKHUELFLGHVSHVWLFLGHVDQGRWKHU SROOXWDQWV3UHFLSLWDWLRQDWWKHEHJLQQLQJRIWKHUDLQ\VHDVRQPD\UHVXOWLQLQLWLDOVWRUPZDWHU UXQRII
ILUVWIOXVK
ZLWKKLJKSROOXWDQWFRQFHQWUDWLRQV
6WRUPZDWHUUXQRIIZDWHUTXDOLW\LVUHJXODWHGORFDOO\E\WKH60&:333ZKLFKLQFOXGHVWKH& SURYLVLRQVVHWE\WKH6DQ)UDQFLVFR%D\5:4&%¶V0537KH053ZDVDPHQGHGLQDQG LQFOXGHVVWULFWHUUHTXLUHPHQWVIRULQFRUSRUDWLQJSRVWFRQVWUXFWLRQVWRUPZDWHUFRQWURO/,' PHDVXUHVLQWRQHZGHYHORSPHQWDQGUHGHYHORSPHQWSURMHFWV%HFDXVHWKHSURSRVHGSURMHFW ZRXOGUHSODFHVTXDUHIHHWRUPRUHRILPSHUYLRXVVXUIDFHLWLVFRQVLGHUHGD³UHJXODWHG SURMHFW´,QRUGHUWRFRPSO\ZLWK3URYLVLRQ&RIWKH053WKHSURMHFWZRXOGEHUHTXLUHGWR LQFOXGHDSSURSULDWHVRXUFHFRQWUROVLWHGHVLJQDQGVWRUPZDWHUWUHDWPHQWPHDVXUHVWRDGGUHVV ERWKVROXEOHDQGLQVROXEOHVWRUPZDWHUUXQRIISROOXWDQWGLVFKDUJHVDQGSUHYHQWLQFUHDVHVLQ UXQRIIIORZV3URMHFWHOHPHQWVWKDWDGGUHVV&SURYLVLRQVLQFOXGHEXWDUHQRWOLPLWHGWR
x 0DUNLQJRQVLWHLQOHWVZLWKW KHZRUGV³1R'XPSLQJ)ORZVWR%D\´RUHTXLYDOHQW x 3OXPELQJLQWHULRUIORRUGUDLQVWRVDQLWDU\VHZHU
x 3OXPELQJLQWHULRUSDUNLQJJDUDJHGUDLQVWRVDQLWDU\VHZHU x 5HWDLQLQJH[LVWLQJYHJHWDWLRQDVSUDFWLFDEOH
x 6HOHFWLQJGLYHUVHVSHFLHVDSSURSULDWHWRWKHVLWH x ,QFOXGLQJSODQWVWKDWDUHSHVWDQGRUGLVHDVHUHVLVWDQWGURXJ KWWROHUDQWDQGRUDWWUDFW EHQHILFLDOLQVHFWV
x 0LQLPL]LQJXVHRISHVWLFLGHVDQG TXLFNUHOHDVHIHUWLOL]HUV x 8VLQJDQHIILFLHQWLUULJDWLRQV\ VWHPGHVLJQHGWRPLQLPL]HUXQRII x 3URYLGLQJDVLQNRURWKHUDUHD IRUHTXLSPHQWFOHDQLQJZKLFKLV
o &RQQHFWHGWRDJUHDVHLQWHUFHSWRUSULRUWRVDQLWDU\VHZHUGLVFKDUJH o /DUJHHQRXJKIRUWKHODUJHVWPDWRUSLHFHRIHTXLSPHQWWREHFOHDQHG o ,QGRRUVRULQDQRXWGRRUURRIHGDUHDGHVLJQHGWRSUHYHQWVWRUPZDWHUUXQRQ DQGUXQRIIDQGVLJQHGWRUHTXLUHHTXLSPHQWZDVKLQJLQWKLVDUHD x 3URYLGLQJDURRIHGDQGHQFORV HGDUHDIRUGXPSVWHUVUHF\FOLQJFRQWDLQHUVHWFGHVLJQHG WRSUHYHQWVWRUPZDWHUUXQRQDQGUXQRII
x &RQQHFWLQJDQ\GUDLQVLQRUEH QHDWKGXPSVWHUVFRPSDFWRUVDQGWDOORZELQDUHDV VHUYLQJIRRGVHUYLFHIDFLOLWLHVWRWKHVDQLWDU\VHZHU

8.a
November 14, 2022

Packet Pg. 337

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
x 3HUIRUPLQJSURFHVVDFWLYLWLHVHLW KHULQGRRUVRULQURRIHGRXWGRRUDUHDGHVLJQHGWR SUHYHQWVWRUPZDWHUUXQRQDQGUXQRIIDQGWRGUDLQWRWKHVDQLWDU\VHZHU x &RYHULQJRUGHVLJQLQJRXWGRRUH TXLSPHQWPDWHULDOVVWRUDJHDUHDVWRDYRLGSROOXWDQW FRQWDFWZLWKVWRUPZDWHUUXQRII
x /RFDWLQJRXWGRRUHTXLSPHQWPDWHU LDOVVWRUDJHDUHDVRQO\RQSDYHGDQGFRQWDLQHGDUHDV x 5RRILQJVWRUDJHDUHDVWKDWZLOO FRQWDLQQRQKD]DUGRXVOLTXLGV x 'HVLJQDWLQJDYHKLFOHHTXLSPHQWUHS DLUPDLQWHQDQFHDUHDLQGRRUVRUDQRXWGRRUVDUHD GHVLJQHGWRSUHYHQWVWRUPZDWHUUXQRQDQGUXQRIIDQGSURYLGHVHFRQGDU\FRQWDLQPHQW x 1RWLQVWDOOLQJGUDLQVLQWKH VHFRQGDU\FRQWDLQPHQWDUHDV x 1RWLQVWDOOLQJIORRUGUDLQVXQO HVVSUHWUHDWHGSULRUWRGLVFKDUJHWRWKHVDQLWDU\VHZHU x &RQQHFWLQJFRQWDLQHUVRUVLQNV XVHGIRUSDUWVFOHDQLQJWRWKHVDQLWDU\VHZHU x 'HVLJQLQJILUHVSULQNOHUV\VWH PVIRUGLVFKDUJHRIILUHVSULQNOHUWHVWZDWHUWRODQGVFDSHRU VDQLWDU\VHZHU
x 'LUHFWLQJURRIUXQRIIWRYHJHWDWHGDUHDV
x 'LUHFWLQJURRIUXQRIIIURPVLGHZDONVZDONZD\VDQGRUSDWLRVW RYHJHWDWHGDUHDV x 'LUHFWLQJUXQRIIIURPGULYHZD\VDQGRUXQFRYHUHGSDUNLQJORWV RQWRYHJHWDWHGDUHDV x /LPLWLQJGLVWXUEDQFHRIQDWXUDOZDWHUERGLHVDQGGUDLQDJHV\VW HPV PLQLPL]LQJ
FRPSDFWLRQRIKLJKO\SHUPHDEOHVRLOV
SURWHFWLQJVORSHVDQGFKDQQHOV
DQGPLQLPL]LQJ
LPSDFWVIURPVWRUPZDWHUDQGXUEDQUXQRIIRQWKHELRORJLFDOLQWHJULW\RIQDWXUDOGUDLQDJH V\VWHPVDQGZDWHUERGLHV
x 0LQLPL]LQJLPSHUYLRXVVXUIDFHV
7KHSURSRVHGSURMHFWZRXOGFRPSO\ZLWKDSSOLFDEOH&SURYLVLRQVDQGKDVSURSRUWLRQHGWKH VLWHLQWRILYH'UDLQDJH0DQDJHPHQW$UHDV
'0$V
DVVKRZQLQ6KHHW&RIWKH'HFHPEHU
SODQVHW7KHVH'0$VZRXOGJHQHUDOO\GLUHFWVWRUPZDWHUUXQRIIWRSODQWHUVDURXQGWKH SHULPHWHURIWKHVLWHZKHUHZDWHUZRXOGIORZWKURXJKYHJHWDWLRQEHIRUHUHDFKLQJWKHRXWIDOORQ WKHVRXWKZHVWHUQFRUQHURIWKHSURMHFWVLWH
3URMHFWFRQIRUPDQFHZLWK13'(6SHUPLWUHTXLUHPHQWVDQGUHTXLUHGSHUPLWDSSURYDOVE\WKH &LW\RI6DQ&DUORVZRXOGHQVXUHWKDWLPSOHPHQWDWLRQRIWKHSURSRVHGSURMHFWZRXOGUHVXOWLQD OHVVWKDQVLJQLILFDQWLPSDFWWRZDWHUTXDOLW\
E
6XEVWDQWLDOO\GHFUHDVHJURXQ GZDWHUVXSSOLHVRULQWHUIHUHVXEVWDQWLDOO\ZLWK JURXQGZDWHUUHFKDUJHVXFKWKDWWKHSURMHFWPD\LPSHGHVXVWDLQDEOH JURXQGZDWHUPDQDJHPHQWRIWKHEDVLQ"
/HVVWKDQ6LJQLILFDQW,PSDFW&RQVWUXFWLRQRIWKHSURSRVHGSURMHFWZRXOGLQYROYHGHZDWHULQJ RIWKHVLWHVRWKDWWKHVXEWHUUDQHDQSDUNLQJJDUDJHFRXOGEHFRQVWUXFWHG$OWKRXJKJURXQGZDWHU LQSUR[LPLW\RIWKHH[FDYDWLRQDUHDPD\DOVRORZHUVOLJKWO\GXULQJFRQVWUXFWLRQDFWLYLWLHV PHDVXUHVZRXOGEHWDNHQLQDFFRUGDQFHZLWKWKHUHFRPPHQGDWLRQVFRQWDLQHGLQWKH JHRWHFKQLFDOUHSRUWVXFKWKDWWKLVUHGXFWLRQLQJURXQGZDWHUZRXOGQRWEHVXEVWDQWLDO 2QFH
FRQVWUXFWHGKRZHYHUWKHSURSRVHGSURMHFWZRXOGLQFUHDVHWKHDPRXQWRISHUPHDEOHVSDFHDW WKHSURMHFWVLWHE\DSSUR[LPDWHO\DFUHV

VTXDUHIHHW
DQGDGGVWRUPZDWHUUHWHQWLRQ
IHDWXUHVWKDWZRXOGIDFLOLWDWHWKHSHUFRODWLRQRIFROOHFWHGVWRUPZDWHU7KHUHIRUHWKHSURSRVHG SURMHFWZRXOGQRWLQWHUIHUHZLWKJURXQGZDWHUUHFKDUJH ,PSOHPHQWDWLRQRIWKHSURSRVHGSURMHFWZRXOGUHVXOWLQDQLQFUHDVHLQZDWHUGHPDQGFRPSDUHG WRH[LVWLQJFRQGLWLRQV+RZHYHUJURXQGZDWHULVQRWXVHGIRUPXQLFLSDOVXSSO\LQ6DQ&DUORV 7KH0LG3HQLQVXOD:DWHU'LVWULFW
03:'
ZRXOGSURYLGHSRWDEOHZDWHUIRUWKHSURSRVHG

$VGLVFXVVHGLQ6HFWLRQORZHULQJWKHJURXQGZDWHULQSUR[LPLW\RIWKHH[FDYDWHGDUHDUHGXFHVWKH EXR\DQF\RIVRLOHVSHFLDOO\WKH%D\0XGOD\HUDQGFRXOGFDXVHUHODWLYHO\VLJQLILFDQWVHWWOHPHQWRIWKH VXUURXQGLQJJURXQG

8.a
November 14, 2022

Packet Pg. 338

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
SURMHFW03:'GRHVQRWXVHJURXQGZDWHUVXSSOLHVWRPHHWGHPDQG6LQFHWKHSURSRVHGSURMHFW ZRXOGQRWGHYHORSRULQFUHDVHWKHXVHRIJURXQGZDWHUVXSSOLHVLPSOHPHQWDWLRQRIWKHSURMHFW ZRXOGQRWLPSDFWJURXQGZDWHUVXSSOLHV)XUWKHUDOWKRXJKWKHSURSRVHGSURMHFWZRXOGLQWURGXFH DVXEWHUUDQHDQVWUXFWXUHDWWKHVLWHLWZRXOGDOVRLQFUHDVHWKHDPRXQWRISHUYLRXVDUHDDWWKH VLWHDQGDOORZIRUJUHDWHUJURXQGZDWHUUHFKDUJHDWWKHVLWHFRPSDUHGWRH[LVWLQJFRQGLWLRQV7KLV LPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW
F
6XEVWDQWLDOO\ DOWHU WKH H[LVWLQJ GUDLQDJH SDWWHUQ RI WKH VLWH RU DUHD LQFOXGLQJ WKURXJKWKHDOWHUDWLRQRIWKHFRXUVHRIDVWUHDPRUULYHURUWK URXJKWKHDGGLWLRQ RILPSHUYLRXVVXUIDFHVLQDPDQQHUZKLFKZRXOG

L
5HVXOWLQVXEVWDQWLDOHURVLRQRUVLOWDWLRQRQRURIIVLWH
/HVV7KDQ6LJQLILFDQW,PSDFW7KHSURMHFWZRXOGQRWVXEVWDQWLDOO\DOWHUWKHGUDLQDJHSDWWHUQRI WKHVLWHRUDUHD&XUUHQWO\WKHLQWHULRURIWKHVLWH¶VH[LVWLQJGUDLQDJHSDWWHUQVGLUHFWVWRUPZDWHU IURPWKHLQWHULRUWRWKHVLWHWRDQRSHQHQJLQHHUHGGUDLQDJHFKDQQHORQWKHVRXWKZHVWHUQFRUQHU RIWKHVLWH8QGHUWKHSURSRVHGSURMHFWVWRUPZDWHUZRXOGEHGLUHFWHGWRRQVLWHVWRUPZDWHU UHWHQWLRQIHDWXUHVDQGWKHQWRWKHRXWIDOOORFDWHGDWWKHVRXWKZHVWFRUQHURIWKHVLWH6WRUPZDWHU UXQRIIIURPWKHVLWHZRXOGEHGLUHFWHGWRDVHULHVRI'0$VELRUHWHQWLRQVZDOHVWKDWDOORZIRUWKH FOHDQVLQJDQGLQILOWUDWLRQRIVWRUPZDWHUEHIRUHUHDFKLQJRXWWKHRXWIDOO7KHSURMHFWZRXOGIHDWXUH SODQWHUDUHDV
IRUVWRUPZDWHUWUHDWPHQW
SULPDULO\RQWKHQRUWKVLGHRIWKHEXLOGLQJEXWDOVRRQ WKHHDVWHUQVRXWKHUQDQGZHVWHUQSURMHFWVLWHSHULPHWHUV VHH)LJXUH±6WRUPZDWHU&RQWURO
3ODQ
7KHSURMHFWZRXOGDOVRUHTXLUHWKHLQVWDOODWLRQRI´39&SLSHDORQJWKHQRUWKHUQVLGHRI WKHSURMHFWVLWHDVZHOODVDVHULHVRIILYHQHZVWRUPGUDLQPDQKROHVRQWKHLQWHULRURIWKHVLWH WKDWJHQHUDOO\SDUDOOHOWKHEXLOGLQJ¶VZHVWHUQIDoDGH7KHSURMHFWZRXOGUHVXOWLQDQLQFUHDVHRI
VTXDUHIHHWRISHUYLRXVVXUIDFHDUHDIURPODQGVFDSLQJDWWKHSURMHFWVLWHXQGHU LPSOHPHQWDWLRQRIWKHSURSRVHGSURMHFW
7KHSURSRVHGSURMHFWZRXOGQRWFDXVHHURVLRQRUVLOWDWLRQRYHUWKHORQJWHUPEHFDXVHWKH SURMHFWVLWHZRXOGEHFRYHUHGZLWKWKHQHZEXLOGLQJSDYHGDUHDVDQGODQGVFDSLQJ1REDUH VRLOVZRXOGEHSUHVHQW+RZHYHUSURMHFWFRQVWUXFWLRQZRXOGUHTXLUHJUDGLQJDQGVRLOH[SRVXUH WKDWFRXOGUHVXOWLQWHPSRUDU\HURVLRQDQGRUVLOWDWLRQLIQRWFRQWUROOHG$VVWDWHGSUHYLRXVO\WKH SURMHFWZRXOGEHUHTXLUHGWRFRPSO\ZLWKH[LVWLQJUHJXODWLRQVDQGLPSOHPHQW%03VWRSUHYHQW HURVLRQDQGVDOWDWLRQ&RPSOLDQFHZLWKWKHVHSURYLVLRQVZRXOGSUHYHQWHURVLRQDQGVLOWDWLRQRQ RURIIVLWHGXULQJFRQVWUXFWLRQDFWLYLWLHV7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW LL
6XEVWDQWLDOO\LQFUHDVHWKHUDWHRUDPRXQWRIVXUIDFHUXQRII LQDPDQQHUZKLFK ZRXOGUHVXOWLQIORRGLQJRQRURIIVLWH

LLL
&UHDWHRUFRQWULEXWHUXQRIIZDWHUZKLFKZRXOGH[FHHGWKHF DSDFLW\RIH[LVWLQJ RU SODQQHG VWRUPZDWHU GUDLQDJH V\VWHPV RU SURYLGH VXEVWDQWLDO D GGLWLRQDO VRXUFHVRISROOXWHGUXQRII

/HVV7KDQ6LJQLILFDQW,PSDFW
5HVSRQVHVLL
DQGLLL

7KHSURMHFWZRXOGQRWDOWHUWKHH[LVWLQJ
GUDLQDJHSDWWHUQRIWKHVLWHH[FHSWIRUDGGLQJELRUHWHQWLRQVZDOHVDQGIORZWKURXJKSODQWHUVIRU RQVLWHVWRUPZDWHUUHWHQWLRQDQGWUHDWPHQW,QDGGLWLRQWKHSURMHFWZRXOGQRWDGGQHZ LPSHUYLRXVVXUIDFHV
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

8.a
November 14, 2022

Packet Pg. 339

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
LY
,PSHGHRUUHGLUHFWIORRGIORZV"
/HVV7KDQ6LJQLILFDQW,PSDFW7KHSURMHFWVLWHLVORFDWHGZLWK)(0$IORRG]RQH$(ZKLFKLVD VSHFLDOIORRGKD]DUGDUHD
6)+$
VXEMHFWWRLQXQGDWLRQE\WKH\HDUIORRGZLWKDEDVHIORRG HOHYDWLRQRIDSSUR[LPDWHO\IHHWDERYHPHDQVHDOHYHO )(0$

7KHHOHYDWLRQDWWKH
VLWHLVDSSUR[LPDWHO\
IHHWDERYHPHDQVHDOHYHOVRIORRGLQJFRXOGRFFXULQWKHHYHQWRID \HDUVWRUP,QDGGLWLRQWKH6DQ0DWHR&RXQW\0XOWLMXULVGLFWLRQDO/RFDO+D]DUG0LWLJDWLRQ3ODQ

SUHVHQWVDPDSVKRZLQJPXFKRIWKHDUHDEHWZHHQ+LJKZD\DQG6WDWH5RXWH (O
&DPLQR5HDO
DVEHLQJLPSDFWHGE\IORRGLQJXQGHUIXWXUHVHDOHYHOULVHVFHQDULRV &RQVWUXFWLRQZLWKLQ6)+$VLVJRYHUQHGE\WKH&LW\¶V0XQLFLSDO&RGH&KDSWHU )ORRG
'DPDJH3UHYHQWLRQ
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
LHWKH%XLOGLQJ2IILFLDO
ZKLFKSURYLGHVSODQVGUDZQWRVFDOHVKRZLQJWKH
QDWXUHORFDWLRQGLPHQVLRQVDQGHOHYDWLRQRIWKHDUHDLQTXHVWLRQ WKHORFDWLRQDQGHOHYDWLRQRI
H[LVWLQJRUSURSRVHGVWUXFWXUHVILOOVWRUDJHRIPDWHULDODQGGUDLQDJHIDFLOLWLHV DQGIORRGSURRILQJ
SURYLVLRQV6SHFLILFDOO\WKHIROORZLQJLQIRUPDWLRQLVUHTXLUHG
x 3URSRVHGHOHYDWLRQLQUHODWL RQWRPHDQVHDOHYHORIWKHORZHVWIORRU LQFOXGLQJ

EDVHPHQW
RIDOOVWUXFWXUHV
x 3URSRVHGHOHYDWLRQLQUHODWLR QWRPHDQVHDOHYHOWRZKLFKDQ\VWUXFWXUHVKDOOEH IORRGSURRIHG)ORRGSURRILQJUHTXLUHVWKHVWUXFWXUHWREHZDWHUWLJKWZLWKZDOOV VXEVWDQWLDOO\LPSHUPHDEOHWRWKHSDVVDJHRIZDWHUEHORZWKHEDVHIORRGOHYHODQGKDYH VWUXFWXUDOFRPSRQHQWVFDSDEOHRIUHVLVWLQJK\GURVWDWLFDQGK\GURG\QDPLFORDGVDQG HIIHFWVRIEXR\DQF\
x $OODSSURSULDWHHOHYDWLRQDQGIO RRGSURRILQJFHUWLILFDWLRQVDVOLVWHGLQ6HFWLRQ
'
RIWKH6DQ&DUORV0XQLFLSDO&RGH
$SSUR[LPDWHO\VTXDUHIHHWRIWKHVXUIDFHRIWKHVLWHZRXOGEHGHGLFDWHGWREXLOGLQJ

FRYHUDJH
VTXDUHIHHWZRXOGEHIRUVLGHZDONVSDWLRVSDWKVGULYHZD\VDQGVWUHHWV DQG
DSSUR[LPDWHO\
VTXDUHIHHWZRXOGEHODQGVFDSLQJ&RPSOLDQFHZLWKWKH&LW\¶V0XQLFLSDO &RGH&KDSWHU
)ORRG'DPDJH3UHYHQWLRQ
ZRXOGUHVXOWLQIORRGZDWHUEHLQJGLYHUWHG
DURXQGWKHSURMHFWEXLOGLQJ
VTXDUHIHHW
UHVXOWLQJLQWKHUHGLUHFWLRQRIIORRGZDWHUV
)XUWKHUPRUHFRQVWUXFWLQJDVXEWHUUDQHDQVWUXFWXUHDWWKHSURMHFWVLWHFRXOGGLVSODFH JURXQGZDWHU,QWKHHYHQWRIIORRGHYHQWKRZHYHUWKHDUHDH[FDYDWHGDQGFRPSULVHGRIWKH VXEWHUUDQHDQSDUNLQJJDUDJHFRXOGSURYLGHPRUHDUHDIRUZDWHUWRIORZLQWR:KHUHDVXQGHU H[LVWLQJFRQGLWLRQVIORRGZDWHUZRXOGKDYHWRVHHSEHWZHHQURFNVVRLOVHWFWKDWXQGHUOD\WKH VLWHXQGHUSURSRVHGFRQGLWLRQVWKRVHHOHPHQWVZRXOGEHUHPRYHGUHVXOWLQJLQDGGLWLRQDODUHD WKDWFRXOGEHILOOHGZLWKZDWHU
LHURFNVVRLOVHWFZRXOGQRWEHORFDWHGLQWKHVDPHYROXPH DUHDDVWKHJDUDJH
)XUWKHUPRUHDVGHVFULEHGXQGHUWKHUHVSRQVHWRFULWHULRQE WKHSURSRVHG
SURMHFWZRXOGLQFUHDVHWKHDPRXQWRISHUYLRXVDUHDDWWKHSURMHFWVLWHZKLFKZRXOGDOORZIRUD JUHDWHUDPRXQWRIZDWHUWRSHUFRODWHLQWRWKHJURXQGWKDQXQGHUH[LVWLQJFRQGLWLRQV,QDGGLWLRQ WKHPDMRULW\RIWKHILUVWIORRURIWKHEXLOGLQJZRXOGEHXWLOL]HGIRUSDUNLQJ DVLQJOHZDOOEDUULHU
ZRXOGQRWVXUURXQGHQWLUHW\RIWKHEXLOGLQJ¶VIRRWSULQW,QWKHHYHQWRIDIORRGWKLVZRXOGDOORZ VRPHZDWHUWRSDVVWKURXJKWKHVWUXFWXUH:KLOHVRPHIORZPD\EHUHGLUHFWHGRQVLWHDURXQG WKHEXLOGLQJLWZRXOGQRWEHDVVXEVWDQWLDODVLIWKHEXLOGLQJIHDWXUHGRFFXSDQF\VSDFHRQWKH

8.a
November 14, 2022

Packet Pg. 340

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
HQWLUHERWWRPIORRU(OHYDWLQJWKHPDLQOHYHOVRIRFFXSDQF\WROHYHOVWKUHHWKURXJKVL[ZRXOG DOVRKDYHWKHDGGHGEHQHILWRISUHSDULQJWKHSURMHFWIRUVHDOHYHOULVHDQGKDYLQJPRVWRIWKH EXLOGLQJ¶VXVDEOHVSDFHDERYHSRWHQWLDOVHDOHYHOULVHSUHGLFWLRQV 7KHSRWHQWLDOIRUWKHSURMHFWWRLPSHGHRUUHGLUHFWIORRGIORZVZRXOGEHOHVVWKDQVLJQLILFDQW EHFDXVHRIWKHVPDOOVL]HRIWKHSURMHFWEXLOGLQJDUHDWKHIDFWWKDWZDWHUFRXOGIORZLQWRDQG SDVVWKURXJKWKHSDUNLQJJDUDJH
PHDQLQJWKDWDOOIORRGZDWHUZRXOGQRWKDYHWREHGLUHFWHG DURXQGWKHEXLOGLQJ7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW G
,Q IORRG KD]DUG WVXQDPL RU VHLFKH ]RQHV ULVN UHOHDVH RI S ROOXWDQWV GXH WR SURMHFWLQXQGDWLRQ"
/HVV7KDQ6LJQLILFDQW,PSDFW$VVWDWHGLQUHVSRQVHWRFULWHULRQF LY
WKHSURMHFWVLWHLV
ORFDWHGZLWK)(0$IORRG]RQH$(ZKLFKLVD6)+$VXEMHFWWRLQXQGDWLRQE\WKH\HDUIORRG ZLWKDEDVHIORRGHOHYDWLRQRIDSSUR[LPDWHO\IHHW
)(0$

7KHHOHYDWLRQDWWKHVLWHLV
DSSUR[LPDWHO\QLQHIHHWVRIORRGLQJFRXOGRFFXULQWKHHYHQWRID\HDUVWRUP $WVXQDPLLVDODUJHWLGDOZDYHJHQHUDWHGE\DQHDUWKTXDNHODQGVOLGHRUYROFDQLFHUXSWLRQ 7VXQDPLLQXQGDWLRQPDSVKDYHEHHQGHYHORSHGIRUWKH6DQ)UDQFLVFR%D\DUHD7KHSURMHFW VLWHLVQRWZLWKLQDWVXQDPLLQXQGDWLRQ]RQH
WKHUHIRUHLWZRXOGQRWEHVXEMHFWWRIORRGLQJIURPD WVXQDPL
&DOLIRUQLD'HSDUWPHQWRI&RQVHUYDWLRQ

6HLFKHVDUHZDYHVWKDWRVFLOODWHLQHQFORVHGZDWHUERGLHVVXFKDVUHVHUYRLUVODNHVSRQGV VZLPPLQJSRROVRUVHPLHQFORVHGERGLHVRIZDWHUVXFKDV6DQ)UDQFLVFR%D\7KHSURMHFWVLWH LVPLOHVZHVWRIWKH6DQ)UDQFLVFR%D\
KRZHYHUDVLWLVQRWZLWKLQWKHWVXQDPLLQXQGDWLRQ
]RQHIRUWKH%D\WKHVLWHLVQRWH[SHFWHGWREHLQXQGDWHGE\DVHLFKH &DOLIRUQLD'HSDUWPHQWRI
&RQVHUYDWLRQ

$OWKRXJKWKHSURMHFWVLWHLVDWULVNRILQXQGDWLRQIURPIORRGLQJWKHSURMHFWZRXOGUHGXFHWKHULVN RIIORRGLQJRQWKHVLWHE\FRPSOLDQFHZLWKWKH&LW\¶V0XQLFLSDO&RGH&KDSWHU )ORRG
'DPDJH3UHYHQWLRQ
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
,QDGGLWLRQWRFRPSO\ZLWK&SURYLVLRQVRIWKH053SRVWFRQVWUXFWLRQ%03VDUHUHTXLUHGWR SURWHFWZDWHUTXDOLW\DWWKHVLWH7KHSURMHFW$SSOLFDQWZRXOGDOVREHUHTXLUHGWRSUHSDUHD SURMHFW6WRUPZDWHU2SHUDWLRQVDQG0DLQWHQDQFH3ODQ7KHULVNRISROOXWDQWUHOHDVHGXHWR SURMHFWLQXQGDWLRQLVH[SHFWHGWREHORZEDVHGRQSURMHFWFKDUDFWHULVWLFVDQGUHTXLUHPHQWVVHW IRUWKLQWKH&LW\¶V0XQLFLSDO&RGH7KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW H
&RQIOLFW ZLWK RU REVWUXFW LPSOHPHQWDWLRQ RI D ZDWHU TXDOLW\ FRQWURO SODQ RU VXVWDLQDEOHJURXQGZDWHUPDQDJHPHQWSODQ"
1R,PSDFW7KHSURMHFWZRXOGFRPSO\ZLWKDOODSSOLFDEOHUHJXODWLRQVWRSURWHFWZDWHUTXDOLW\

VHHUHVSRQVHWRFULWHULRQD
DQGZRXOGQRWLPSDFWJURXQGZDWHU
VHHUHVSRQVHWRFULWHULRQE

,QWKLVFDVHDOOIORRGZDWHUZRXOGKDYHWREHGLUHFWHGDURXQGWKHEXLOGLQJ

8.a
November 14, 2022

Packet Pg. 341

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7KHUHIRUHWKHSURMHFWZRXOGQRWREVWUXFWLPSOHPHQWDWLRQRIDZDWHUTXDOLW\FRQWUROSODQRU JURXQGZDWHUPDQDJHPHQWSODQ1RLPSDFWZRXOGRFFXU
5HIHUHQFHV
%.)(QJLQHHUV6DQ0DWHR&RXQW\ZLGH:DWHU3ROOXWLRQ3UHYHQWLRQ3URJUDP&DQG& 'HYHORSPHQW5HYLHZ&KHFNOLVW3UHSDUHGIRUWKH&LW\RI6DQ&DUORV3XEOLF:RUNV 'HSDUWPHQW1RYHPEHU
&DOLIRUQLD'HSDUWPHQWRI&RQVHUYDWLRQ6DQ0DWHR&RXQW7VXQDPL+D]DUG$UHDV $FFHVVHG)HEUXDU\DWKWWSV
ZZZFRQVHUYDWLRQFDJRYFJVWVXQDPLPDSVVDQ
PDWHR
&LW\RI6DQ&DUORV

0XQLFLSDO&RGH&KDSWHU6WRUPZDWHU0DQDJHPHQWDQG 'LVFKDUJH&RQWURO
______0XQLFLSDO&RGH&KDSWHU)ORRG'DPDJH3UHYHQWLRQ )HGHUDO(PHUJHQF\0DQDJHPHQW$JHQF\
)(0$

1DWLRQDO)ORRG,QVXUDQFH3URJUDP
)ORRG,QVXUDQFH5DWH0DS&
*
KWWSV
PVFIHPDJRYSRUWDOVHDUFK"$GGUHVV4XHU\ LQGXVWULDOURDG&V DQFDUORV&FDVHDUFKUHVXOWVDQFKRU$FFHVVHG'HFHPEHU 6DQ0DWHR&RXQW\0XOWLMXULVGLFWLRQDO/RFDO+D]DUG0LWLJDWLRQ3ODQ2FWREHU KWWSV
FPRVPFJRYRUJVLWHVFPRVPFJRYRUJILOHV

B6DQ0DWHR+03B9ROB$GRSWLRQ'UDIWSGI

8.a
November 14, 2022

Packet Pg. 342

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
/$1'86($1'3/$11,1*

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
3K\VLFDOO\GLYLGHDQHVWDEOLVKHGFRPPXQLW\"
E
&DXVHDVLJQLILFDQWHQYLURQPHQWDOLPSDFW
GXHWRDFRQIOLFWZLWKDQ\ODQGXVHSODQSROLF\
RUUHJXODWLRQDGRSWHGIRUWKHSXUSRVHRI
DYRLGLQJRUPLWLJDWLQJDQHQYLURQPHQWDOHIIHFW"

(QYLURQPHQWDO6HWWLQJ
7KHSURMHFWVLWHLVFXUUHQWO\RFFXSLHGE\DVHOIVWRUDJHIDFLOLW\DQGDVVRFLDWHGSDUNLQJORWDUHD 7KHSURMHFWVLWHKDVD]RQLQJGHVLJQDWLRQRI/DQGPDUN&RPPHUFLDO /&
DQGD*HQHUDO3ODQ
GHVLJQDWLRQRI&RPPHUFLDO,QGXVWULDO
*&,
6LQJOHIDPLO\UHVLGHQFHVDUHORFDWHGZHVWRIWKH
SURMHFWVLWHDFURVV,QGXVWULDO5RDG7KH6DQ&DUORV$LUSRUWLVORFDWHGHDVWRIWKHSURMHFWVLWH DFURVV+LJKZD\$SDUFHOFXUUHQWO\GHYHORSHGZLWKDOLJKWLQGXVWULDOXVHEXWWKDWLVEHLQJ SURSRVHGIRUUHGHYHORSPHQWDVDKRWHO
WKH+RWHO,QGLJR
LVORFDWHGVRXWKRIWKHSURMHFWVLWH
DFURVV+ROO\6WUHHW,QWKHLPPHGLDWHYLFLQLW\RIWKHSURMHFWVLWH+LJKZD\ERUGHUVWKHVLWHWR WKHHDVWDQGVRXWKD6XWWHU+HDOWKPHGLFDOIDFLOLW\DQGLWVDVVRFLDWHGSDUNLQJJDUDJHDUH ORFDWHGQRUWKRIWKHSURMHFWVLWHDQGDQ,Q12XWLVORFDWHGZHVWRIWKHSURMHFWVLWH ,QGXVWULDO5RDGLVDNH\ORFDWLRQLGHQWLILHGDVD/&DQG*DWHZD\VLWHLQWKH=RQLQJ&RGH DQG*HQHUDO3ODQUHVSHFWLYHO\DQGLVLQFOXGHGLQVHYHUDO&LW\SODQVLQFOXGLQJWKH(FRQRPLF 'HYHORSPHQW3ODQDQGWKH(DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ7KHFRQVLVWHQWWKHPHLV WKDWWKLVVLWHLVD³JDWHZD\´WRDQGDODQGPDUNIRUWKH&LW\ 5HJXODWRU\6HWWLQJ
&LW\RI6DQ&DUORV*HQHUDO3ODQ
7KH6DQ&DUORV*HQHUDO3ODQGHVLJQDWHVWKHSURMHFWVLWHDV*HQHUDO &RPPHUFLDO,QGXVWULDO
*&,
DODQGXVHGHVLJQDWLRQLQWHQGHGSULPDULO\IRUSURGXFWLRQDQG PDQXIDFWXULQJXVHV8VHVLQWKLVODQGXVHGHVLJQDWLRQJHQHUDOO\LQFOXGHUHWDLOVHUYLFHRIILFH 5 'DQGLQGXVWULDOXVHV
7KH/DQG8VH(OHPHQWRIWKH*HQHUDO3ODQLGHQWLILHVWKHSURMHFWVLWHDVD3ULPDU\*DWHZD\LQWR WKH&LW\DQG/DQG8VH(OHPHQWSROLFLHV/8WKURXJKDSSO\WRWKHGHVLJQRIWKH SURSRVHGSURMHFW7KH*HQHUDO3ODQFRQWDLQVRWKHUSROLFLHVWKDWDUHDSSOLFDEOHWRWKHSURSRVHG SURMHFW7KHVHSROLFLHVDUHSUHVHQWHGLQWKHHQYLURQPHQWDOUHVRXUFHVHFWLRQVWKDWWKH\DUH DSSOLFDEOHWR)RUH[DPSOHSROLFLHVUHODWHGWRDHVWKHWLFVDUHSUHVHQWHGLQ6HFWLRQDQG SROLFLHVUHODWHGWRJHRORJ\DQGVRLOVDUHSUHVHQWHGLQ6HFWLRQ &LW\RI6DQ&DUORV=RQLQJ&RGH
7KH&LW\¶V=RQLQJ&RGHLVFRQWDLQHGDV7LWOHRIWKH0XQLFLSDO&RGH7KHSURMHFWVLWHKDVD ]RQLQJGHVLJQDWLRQRI/&
/DQGPDUN&RPPHUFLDO

VHH&KDSWHU
7KLV]RQLQJGHVLJQDWLRQ
LVLQWHQGHGWRDFFRPPRGDWHNH\SDUFHOVNQRZQFROOHFWLYHO\DVODQGPDUNVLWHVZKLFKDUH WDUJHWHGIRUHFRQRPLFGHYHORSPHQWRIUHJLRQDOUHWDLODQGGHVWLQDWLRQRULHQWHGXVHVLQFOXGLQJ ODUJHVFDOHRIILFHFRPSOH[HVDQGKRWHOVDVLQGLYLGXDORUFRPELQHGXVHVWKDWDUHLQWHQGHGWR VHUYHUHJLRQDOXVHUVDQGKDYHVLJQLILFDQWEHQHILFLDOUHVXOWVLQHPSOR\PHQWJURZWKDQGFRQWULEXWH WRWKHHFRQRPLFVXVWDLQDELOLW\RIWKH&LW\DQGLPSOHPHQWDWLRQRIWKH&LW\¶V(FRQRPLF

8.a
November 14, 2022

Packet Pg. 343

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
'HYHORSPHQW3ODQ7KH/&]RQLQJGHVLJQDWLRQKDVDPD[LPXPEXLOGLQJKHLJKWRIIHHWD PD[LPXPIORRUDUHDUDWLR
)$5
RIDQGUHTXLUHVDIRRWVHWEDFNRQIURQWDQGVLGHORWOLQHV

VHH0XQLFLSDO&RGH7DEOH
$GGLWLRQDOGHWDLOVUHJDUGLQJDHVWKHWLFVRIWKH/&DQG 3ODQQHG'HYHORSPHQW
3'
GHVLJQDWLRQVDVZHOODVLQIRUPDWLRQRQWKH&LW\¶VGHVLJQUHYLHZ SURFHVVFDQEHIRXQGLQ6HFWLRQ
6DQ&DUORV0XQLFLSDO&RGH6HFWLRQ5HTXLUHG3DUNLQJ6 SDFHVUHTXLUHVYHKLFXODU SDUNLQJVSDFHVDVIROORZV

x 2QHYHKLFXODUSDUNLQJVSDFHIR UHYHU\VTXDUHIHHWRIRIILFHVSDFH x 2QHYHKLFXODUSDUNLQJVSDFHIR UHYHU\VTXDUHIHHWRIODERUDWRU\VSDFH 0XQLFLSDO&RGH6HFWLRQ %LF\FOH3DUNLQJUHTXLUHVVKR UWWHUPDQGORQJWHUPELF\FOH SDUNLQJDVIROORZV

x /RQJ7HUP%LF\FOH3DUNLQJ
RQHSHUWRWDOUHTXLUHGVWDQGDUG YHKLFOHVSDFHV
x 6KRUW7HUP%LF\FOH3DUNLQJ
SHUFHQWRIWRWDOUHTXLUHGVWDQG DUGYHKLFOHVSDFHV 0XQLFLSDO&RGH6HFWLRQ3DUNLQJ$UHD'HVLJQDQG'HYHORSPHQW6WDQGDUGVUHTXLUHV SHUFHQWRIWKHUHTXLUHGSDUNLQJVSDFHVIRURIILFHVWREHUHVHUYHGIRUFDUSRROVRUYDQSRROV 7KHVHVSDFHVVKDOOEHORFDWHGFORVHVWWRWKHPDLQHQWUDQFH H[FOXVLYHRIVSDFHVGHVLJQDWHGIRU

KDQGLFDSSHG

6DQ&DUORV$LUSRUW/DQG8VH&RPSDWLELOLW\3ODQ
7KHSURMHFWLVORFDWHGLQWKH6DQ&DUORV$LUSRUW/DQG8VH&RPSDWLELOLW\3ODQ $/8&3
DUHD
$FFRUGLQJWRWKH$/8&3WKHSURMHFWVLWHLVQRWZLWKLQDSULPDU\IOLJKWSDWKEXWLVZLWKLQ=RQH WKHWUDIILFSDWWHUQ]RQH8QGHUWKH$/8&3WKHSURMHFWVLWHKDVDQDOORZDEOHKHLJKWRIIHHW &OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ
2Q6HSWHPEHU6DQ&DUORVDGRSWHGWKH&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ

&0$3
7KH&0$3GHWDLOVWKH&LW\¶VVWUDWHJ\IRUUHGXFLQJFLW\ZLGH*+*HPLVVLRQVWKURXJK DQGDQGLGHQWLILHVFOLPDWHDGDSWDWLRQDQGUHVLOLHQF\VWUDWHJLHVIRUSUHSDULQJWKH FLW\IRUWKHDGYHUVHHIIHFWVDQWLFLSDWHGXQGHUDFKDQJLQJFOLPDWH7KHIROORZLQJUHIOHFWV DGDSWDWLRQVWUDWHJLHVWKDWPD\EHDSSOLFDEOHWRWKHSURSRVHGSURMHFW
x 6WUDWHJ\
2SHQ6SDFH3UHVHUYDWLRQ3UHVHUYHH[LVWLQJRSHQVSDFHE\VXSSRUWLQJ XUEDQLQILOO
x 6WUDWHJ\
+HDW,VODQG(IIHFW0LQLPL]HWKHXUEDQKHDWLVODQGHIIHFW 6HFWLRQRIWKLV,QLWLDO6WXG\DGGUHVVHVWKHVWUDWHJLHVWKDWZRXOGEHDSSOLFDEOHWRWKHSURMHFW IURPD*+*HPLVVLRQVVWDQGSRLQW
(DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ
7KH(DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ

DGGUHVVHVIXWXUHFKDQJHVLQGHYHORSPHQW
SDWWHUQVDQGLQIOX[RIMREVFRPLQJIURPPDUNHWGULYHQELRWHFKDQGOLIHVFLHQFHLQGXVWULHV7KH 9LVLRQ3ODQVHWVIRUWKFOHDUJRDOVDQGSULQFLSOHVZULWWHQWRDFKLHYHWKHGHVLUHGFKDUDFWHUIRU6DQ &DUORV¶V(DVW6LGH,QQRYDWLRQ'LVWULFW7KHIROORZLQJ(DVW6LGH,QQRYDWLRQ'LVWULFW9LVLRQ3ODQ SULQFLSOHVFRQFHUQLQJODQGXVHPD\EHUHOHYDQWWRWKHSURSRVHGSURMHFW *2$/(VWDEOLVKWZRGLVWLQFWVXEDUHDVZLWKLQWKH'LVWULFWHQDEOLQJDGLYHUVHPL[RIEXVLQHVVHV GHYHORSPHQWW\SHVDQGXVHV
LQFOXGLQJUHVLGHQWLDO
WRWKULYH
$3ULRULWL]HDPL[RIXVHVLQWKH&DWDO\VW6XEDUHDLQFOXGLQJQHZOLIHVFLHQFHVWHFKQRORJ\ DQGRWKHUFRPPHUFLDORIILFHXVHVZLWKDFWLYHXVHVDQGRWKHUFRPPXQLW\DPHQLWLHVDWWKH JURXQGIORRU

8.a
November 14, 2022

Packet Pg. 344

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
L0DLQWDLQGHYHORSPHQWKHLJKWVDWIHHWPD[LPXP
DVSHUH[LVWLQJ]RQLQJUHJXODWLRQV

SRWHQWLDOIRUDGGLWLRQDOKHLJKWXSWRDPD[LPXPRIIHHWPD\EHFRQVLGHUHGWKURXJK DSSURYDORID3ODQQHG'HYHORSPHQW
3'
3ODQSHU6DQ&DUORV]RQLQJUHTXLUHPHQWV
LL/RFDWHWDOOHUGHYHORSPHQWDORQJ,QGXVWULDO5RDG&RPPHUFLDO6WUHHWDQG%ULWWDQ $YHQXH
LLL,QUHVSRQVHWRWKH&RXQFLO¶VVWUDWHJLFREMHFWLYHIRUWKH'LVWULFWDGRSWDWLHUHGV\VWHP ZKHUHQHZGHYHORSPHQWFRQWULEXWHVFHUWDLQUHVRXUFHVDQGDPHQLWLHVEDVHGRQWKHVFDOH RIGHYHORSPHQW3RWHQWLDOUHVRXUFHVLQFOXGH
FRPPXQLW\RSHQVSDFHQRQYHKLFXODU
FRQQHFWLRQVDFWLYHJURXQGIORRUXVHVDQGFRPPXQLW\IDFLOLWLHV LY6WXG\WKHSRWHQWLDOIRULQWURGXFLQJZLWKLQWKHSODQDUHDRQO\PL[HGXVHUHVLGHQWLDO GHYHORSPHQWDQGRWKHUKLJKGHQVLW\KRXVLQJWKDWLVFRQWH[WXDOWRWKHQHLJKERUKRRG DORQJDUWHULDODQGFROOHFWRUVWUHHWVZLWKLQDKDOIPLOHIURPWKH6DQ&DUORV&DOWUDLQ 6WDWLRQ
'LVFXVVLRQ
:RXOGWKHSURMHFW

D
3K\VLFDOO\GLYLGHDQHVWDEOLVKHGFRPPXQLW\"
1R,PSDFW7KHGHYHORSPHQWRIWKHSURSRVHGSURMHFWZRXOGRFFXURQDVLWHWKDWLVFXUUHQWO\ GHYHORSHGZLWKDVHOIVWRUDJHIDFLOLW\7KHSURMHFWZRXOGQRWDOWHUH[LVWLQJURDGZD\SDWWHUQVDQG ZRXOGQRWLQWURGXFHDQ\QHZPDMRUURDGZD\VRURWKHUSK\VLFDOIHDWXUHVWKDWZRXOGFUHDWHQHZ EDUULHUVLQH[LVWLQJUHVLGHQWLDOQHLJKERUKRRGVRURWKHUFRPPXQLWLHV$VVXFKWKHSURMHFWZRXOG QRWSK\VLFDOO\GLYLGHDQHVWDEOLVKHGFRPPXQLW\1RLPSDFWZRXOGRFFXU E
&DXVH D VLJQLILFDQW HQYLURQPHQWDO LPSDFW GXH WR D FRQIOLFW ZLWK DQ\ ODQG XVH SODQSROLF\RUUHJXODWLRQDGRSWHGIRUWKHSXUSRVHRIDYRLGLQJ RUPLWLJDWLQJDQ HQYLURQPHQWDOHIIHFW"
/HVVWKDQ6LJQLILFDQW,PSDFW7KHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKDQ\ODQGXVHSODQ SROLF\RUUHJXODWLRQDGRSWHGIRUWKHSXUSRVHVRIDYRLGLQJRUPLWLJDWLQJDQHQYLURQPHQWDOHIIHFW 6DQ&DUORV*HQHUDO3ODQ
7KH*HQHUDO3ODQ*XLGHOLQHVSXEOLVKHGE\WKH6WDWH2IILFHRI3ODQQLQJDQG5HVHDUFKGHILQHV FRQVLVWHQF\DVIROORZV
³$QDFWLRQSURJUDPRUSURMHFWLVFRQVLVWHQWZLWKWKH*HQHUDO3ODQLI FRQVLGHULQJDOOLWVDVSHFWVLWZRXOGIXUWKHUWKHREMHFWLYHVDQGSROLFLHVRIWKH*HQHUDO3ODQDQG QRWREVWUXFWWKHLUDWWDLQPHQW´7KHUHIRUHWKHVWDQGDUGIRUDQDO\VLVXVHGLQWKLV,QLWLDO6WXG\LV EDVHGRQJHQHUDODJUHHPHQWZLWKWKHSROLF\ODQJXDJHDQGIXUWKHUDQFHRIWKHSROLF\LQWHQW7KH &LW\*HQHUDO3ODQKDVLQFOXGHGQXPHURXVSROLFLHVIRUWKHSXUSRVHVRIDYRLGLQJRUPLWLJDWLQJDQ HQYLURQPHQWDOHIIHFW7KHVHSROLFLHVDUHDSSOLFDEOHWRYDULRXVHQYLURQPHQWDOUHVRXUFHVHFWLRQV FRQWDLQHGLQWKLV,QLWLDO6WXG\)RUH[DPSOH*HQHUDO3ODQSROLFLHVUHODWHGWRDHVWKHWLFV HJVLWH
DQGEXLOGLQJGHVLJQ
DQGGHVLJQDWLQJWKHVLWHDVD*DWHZD\DUHGHVFULEHGLQWKHDHVWKHWLFV GLVFXVVLRQ
VHH6HFWLRQ
ZKLOHSROLFLHVUHODWHGWRJHRWHFKQLFDOFRQVLGHUDWLRQVDUHGHVFULEHG LQWKHJHRORJ\DQGVRLOVGLVFXVVLRQ
VHH6HFWLRQ
6LPLODUO\SROLFLHVUHODWHGWRQRLVHDVZHOO
DVWKHSURMHFW¶VFRQVLVWHQF\ZLWKWKRVHSROLFLHVFDQEHIRXQGLQ6HFWLRQ$VGHVFULEHG WKURXJKRXWWKLV,QLWLDO6WXG\WKHSURSRVHGSURMHFWZRXOGQRWFRQIOLFWZLWKDSSOLFDEOH*HQHUDO 3ODQSROLFLHVWKDWZHUHDGRSWHGIRUWKHSXUSRVHVRIDYRLGLQJRUPLWLJDWLQJDQHQYLURQPHQWDO HIIHFW

8.a
November 14, 2022

Packet Pg. 345

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
=RQLQJ2UGLQDQFH
+HLJKWDQG6HWEDFNV
7KHSURSRVHGSURMHFWZRXOGLQYROYHWKHFRQVWUXFWLRQRIDVL[VWRU\OLIHVFLHQFH 5 '
EXLOGLQJLQ
WKH/&]RQLQJGLVWULFW7KH/&GLVWULFWKDVDPD[LPXPEXLOGLQJKHLJKWRIIHHWDQGDPD[LPXP IORRUDUHDUDWLR
)$5
RI7KHGLVWULFWUHTXLUHVDIRRWVHWEDFNRQIURQWDIRRWVHWEDFN RQWKHVWUHHWVLGHDQG]HURIRRWVHWEDFNRQWKHUHDUDQGLQWHULRUVLGH2IILFHVDQG5 'XVHVDUH SHUPLWWHGLQWKH/&GLVWULFW ZLWKDSSURYDORIDPLQRUXVHSHUPLWE\WKH=RQLQJ$GPLQLVWUDWRU7KH SURSRVHGSURMHFWPHHWVWKHIRRWIURQW\DUGVHWEDFNDORQJ,QGXVWULDO5RDGWKHIRRWVWUHHW VLGHVHWEDFNDORQJ+ROO\6WUHHWDQGWKHIRRWPLQLPXPLQWHULRUVLGHDQGUHDU\DUGVHWEDFN7KH SURSRVHGEXLOGLQJZRXOGKDYHD)$5RIZKLFKH[FHHGVWKH&LW\¶VGHVLJQDWHG)$5 VWDQGDUGRI7KHSURMHFWEXLOGLQJZRXOGEHFRQVWUXFWHGWRDKHLJKWRIIHHWLQFKHV ZKLFKH[FHHGVWKHPD[LPXPEXLOGLQJKHLJKWRIIHHWIRUWKH/&'LVWULFW7KHSURMHFW$SSOLFDQW LVSURSRVLQJWRUH]RQHWKHVLWHWR3ODQQHG8QLW'HYHORSPHQW 3'
WRDOORZIRUWKHSURSRVHG
EXLOGLQJKHLJKWDQG)$5ZKLFKH[FHHGVWKHKHLJKWDQG)$5OLPLWDWLRQVEDVHGRQLWVFXUUHQW ]RQLQJ
7KHSURMHFWVLWHLVDJDWHZD\DQGODQGPDUNDVLQGLFDWHGE\WKHVLWH¶VFXUUHQW*HQHUDO3ODQDQG ]RQLQJGHVLJQDWLRQV7KHSURMHFWZRXOGLQFRUSRUDWHDQDUWLVWLFEXLOGLQJHOHPHQW LHIULWWHGJODVV
DORQJWKHVRXWKHUQHDVWHUQIDoDGH
ZKLFKZRXOGIXQFWLRQDVGHVLJQDWLQJWKHEXLOGLQJD
ODQGPDUNJDWHZD\ORFDWLRQ7KRXJKWKHSURMHFW$SSOLFDQWLQWHQGVWRUH]RQHWKHVLWHWR3'WKH SURMHFWZRXOGLQFRUSRUDWHGHVLJQHOHPHQWVFRQVLVWHQWZLWKWKHVLWH¶VH[LVWLQJ]RQLQJGLVWULFWDQG ODQGXVHGHVLJQDWLRQ)XUWKHUWKHSURMHFWZRXOGEHVXEMHFWWRWKH&LW\¶VGHVLJQUHYLHZSURFHVV RXWOLQHLQ0XQLFLSDO&RGH&KDSWHU

VHH6HFWLRQIRUPRUHLQIRUPDWLRQ

3DUNLQJ
6DQ&DUORV0XQLFLSDO&RGH6HFWLRQ5HTXLUHG3DUNLQJ6SDFHVUHTXLUHVRQH YHKLFXODUSDUNLQJVSDFHIRUHYHU\VTXDUHIHHWRIRIILFHVSDFH RUVSDFHVEDVHGRQD
SURSRVHGRIILFHEXLOGLQJDUHDRI
VTXDUHIHHW
DQGRQHYHKLFXODUSDUNLQJVSDFHIRUHYHU\
VTXDUHIHHWRIODERUDWRU\VSDFH
RUVSDFHVEDVHGRQDSURSRVHGODERUDWRU\EXLOGLQJ DUHDRIVTXDUHIHHW
8QGHUWKHVHUHTXLUHPHQWVLQWRWDOWKHSURMHFWLVUHTXLUHGWR SURYLGHYHKLFXODUSDUNLQJVSDFHV
7KHSURSRVHGSURMHFWLQFOXGHVYHKLFXODUSDUNLQJVSDFHV2IWKHSDUNLQJVSDFHV SURYLGHGVSDFHVDUHUHTXLUHGIRUWKHODERUDWRU\XVHDQG VSDFHVDUHUHTXLUHGIRUWKH
RIILFHXVH2IWKHSDUNLQJVSDFHVSURYLGHGQLQHVSDFHVZRXOGEHDFFHVVLEOHVWDOOV VSDFHVZRXOGEHIRU&OHDQ$LU9HKLFOHV
&$9
FDUSRRODQGVSDFHVZRXOGEHHOHFWULFYHKLFOH

(9
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
7KLVFDOFXODWHG)$5LQFOXGHVSDUNLQJVSDFH([FOXGLQJSDUNLQJVSDFHWKH)$5SODQQLQJIORRUDUHDLV DSSUR[LPDWHO\VTXDUHIHHWZKLFKZKHQGLYLGHGE\WKHDUHDRIWKHVLWH LHDSSUR[LPDWHO\
DFUHV
VTXDUHIHHW
UHVXOWVLQWKHGHVLJQDWHG)$5RI

8.a
November 14, 2022

Packet Pg. 346

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
6DQ&DUORV&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ
$VGHVFULEHGLQ6HFWLRQWKHSURSRVHGSURMHFWZRXOGEHFRQVLVWHQWZLWKDSSOLFDEOHVWUDWHJLHV LQWKH&0$3WKDWKDYHEHHQDGRSWHGIRUWKHSXUSRVHVRIUHGXFLQJ*+*HPLVVLRQV7KH SURSRVHGSURMHFWZRXOGDOVREHFRQVLVWHQWZLWK6WUDWHJLHVDQGDVGHVFULEHGEHORZ x 6WUDWHJ\
2SHQ6SDFH3UHVHUYDWLRQ7KHSURSRVHGSURMHFWFRQVLVWVRILQILOO GHYHORSPHQW7KHQHZOLIHVFLHQFHEXLOGLQJZRXOGEHFRQVWUXFWHGRQDVLWHWKDWLV FXUUHQWO\RFFXSLHGE\DVHOIVWRUDJHIDFLOLW\,WZRXOGQRWLQFUHDVHXUEDQVSUDZORUUHGXFH RSHQVSDFH7KHSURMHFWZRXOGSURYLGHPRUHSHUYLRXVVXUIDFHVWKDQLVFXUUHQWO\ZLWKLQ WKHVLWH
x 6WUDWHJ\
+HDW,VODQG(IIHFW7KHSURSRVHGSURMHFWZRXOGUHVXOWLQDJUHDWHUDPRXQW RIJUHHQVSDFHDWDQGLQSUR[LPLW\RIWKHSURMHFWVLWH7KHSURMHFWZRXOGUHVXOWLQPRUH WUHHFRYHUDQGZRXOGLQFOXGHEXLOGLQJHOHPHQWVWKDWZRXOGUHIOHFWVXQOLJKWUHGXFLQJWKH DPRXQWRIDUHDWKDWFRXOGDEVRUEWKHVXQ¶VHQHUJ\DQGWKHQUHHPLWLWLQWKHIRUPRIKHDW

LHWKHSURFHVVWKDWFRQWULEXWHVWRWKHKHDWLVODQGHIIHFW 7KHSURMHFWSURYLGHVPRUH
SHUYLRXVVXUIDFHVWKDQFXUUHQWO\IRXQGRQWKHVLWH
7KHSURSRVHGSURMHFWZRXOGEHFRQVLVWHQWZLWKWKH&LW\¶V&0$3DQGZRXOGQRWFRQIOLFWZLWKD VWUDWHJ\WKDWZDVDGRSWHGIRUWKHSXUSRVHVRIDYRLGLQJRUPLWLJDWLQJDQHQYLURQPHQWDOLPSDFW 6DQ&DUORV$LUSRUW/DQG8VH&RPSDWLELOLW\3ODQ
$FFRUGLQJWRWKH$/8&3WKHSURMHFWVLWHLVZLWKLQ6DIHW\=RQHWKHWUDIILFSDWWHUQ]RQH2IILFH DQG5 'XVHVDUHLGHQWLILHGDVFRPSDWLEOHXVHVLQWKLV]RQH7KHUHIRUHWKHSURMHFWZRXOGEH FRQVLVWHQWZLWKWKHSHUPLWWHGODQGXVHVLQWKH$/8&37KHKHLJKWOLPLWIRUWKHSURMHFWVLWHSHU 6DQ0DWHR&RXQW\DQG)$$UHJXODWLRQVLVDSSUR[LPDWHO\IHHWDERYHPHDQVHDOHYHO 06/

7KHWRSRJUDSK\DWWKHSURMHFWVLWHLVQHDUO\IODWZLWKDQHOHYDWLRQRIDSSUR[LPDWHO\ IHHWDERYH
7KHUHIRUHWKHURRIRIWKHIRRWLQFKEXLOGLQJZRXOGDWPRVWEHDSSUR[LPDWHO\ IHHW
06/$VVXFKWKHSURSRVHGSURMHFWZRXOGEHFRQVLVWHQWZLWKWKH$/8&37KLVLPSDFWZRXOGEH OHVVWKDQVLJQLILFDQW
&RQFOXVLRQ
7KHSURSRVHGSURMHFWZRXOGUHTXHVWUH]RQLQJWRD3'SHUPLWZKLFKZRXOGDOORZLW¶V)$5DQG KHLJKWWRH[FHHGWKHOLPLWDWLRQVVHWIRUWKIRUWKH/&]RQLQJGHVLJQDWLRQDQGZRXOGEHFRQVLVWHQW ZLWKWKH&LW\¶V*HQHUDO3ODQ0XQLFLSDO&RGHSDUNLQJUHTXLUHPHQWV&0$3DQG6DQ&DUORV $&/837KLVLPSDFWZRXOGEHOHVVWKDQVLJQLILFDQW
5HIHUHQFHV
&LW\&RXQW\$VVRFLDWLRQRI*RYHUQPHQWVRI6DQ0DWHR&RXQW\ &&$*
&RPSUHKHQVLYH
$LUSRUW/DQG8VH&RPSDWLELOLW\3ODQIRUWKH(QYLURQVRI6DQ&DUORV$LUSRUW$GRSWHG 2FWREHU$YDLODEOHDW
KWWSV
FFDJFDJRYZSFRQWHQWXSORDGV'UDIW)LQDO
$/8&36DQ&DUORV$LUSRUWSGI
&LW\RI6DQ&DUORV
6DQ&DUORV*HQHUDO3ODQ
(QYLVLRQ$GRSWHG2FWREHU

BBBBBBD6DQ&DUORV0XQLFLSDO&RGH7LWOH
=RQLQJ5HYLVHG0DUFK
BBBBBBE&LW\RI6DQ&DUORV&OLPDWH0LWLJDWLRQDQG$GDSWDWLRQ3ODQ$GRSWHG6HSWHPEHU

$OWKRXJKVXQOLJKWZRXOGEHUHIOHFWHGLWZRXOGQRWEHVLJQLILFDQWIRUWKHUHDVRQVGLVFXVVHGLQ6HFWLRQ

8.a
November 14, 2022

Packet Pg. 347

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
0,1(5$/5(6285&(6

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFW

D
5HVXOWLQWKHORVVRIDYDLODELOLW\RIDNQRZQ
PLQHUDOUHVRXUFHWKDWZRXOGEHRIYDOXHWRWKH
UHJLRQDQGWKHUHVLGHQWVRIWKHVWDWH"

E
5HVXOWLQWKHORVVRIDYDLODELOLW\RIDORFDOO\
LPSRUWDQWPLQHUDOUHVRXUFHUHFRYHU\VLWH
GHOLQHDWHGRQDORFDO
JHQHUDOSODQVSHFLILF
SODQRURWKHUODQGXVHSODQ"

(QYLURQPHQWDO6HWWLQJ
7KHSURMHFWVLWHLVORFDWHGLQWKH&LW\RI6DQ&DUORVDWDQH[LVWLQJVXUIDFHSDUNLQJORW VXUURXQGHGE\OLJKWLQGXVWULDOZDUHKRXVLQJDQGUHWDLOODQGXVHV7KHUHDUHQRPLQHVRUNQRZQ PLQHUDOUHVRXUFHVLQWKH&LW\RI6DQ&DUORV
6DQ&DUORV

'LVFXVVLRQ
:RXOGWKHSURSRVHGSURMHFW

D
5HVXOWLQWKHORVVRIDYDLODELOLW\RIDNQRZQPLQHUDOUHVRXU FHWKDWZRXOGEHRI YDOXHWRWKHUHJLRQDQGWKHUHVLGHQWVRIWKHVWDWH"
E
5HVXOWLQWKHORVVRIDYDLODELOL W\RIDORFDOO\LPSRUWDQWPLQHUDOUHVRXUFHUHFRYHU\ VLWHGHOLQHDWHGRQDORFDOJHQHUDOSODQVSHFLILFSODQRURWKHUODQGXVHSODQ" 1R,PSDFW
5HVSRQVHVD±E
1RORFDOO\LPSRUWDQWPLQHUDOUHVRXUFHVDUHGHVLJQDWHGLQWKH&LW\ RI6DQ&DUORV
6DQ&DUORV

7KHSURMHFWVLWHKDVQRSRWHQWLDOIRUXVHLQUHVRXUFHUHFRYHU\ DQGWKHUHIRUHZRXOGKDYHQRLPSDFWRQWKHDYDLODELOLW\RIPLQHUDOUHVRXUFHV 5HIHUHQFHV
&LW\RI6DQ&DUORV
6DQ&DUORV

*HQHUDO3ODQ$GRSWHG2FWREHU

8.a
November 14, 2022

Packet Pg. 348

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
12,6(

3RWHQWLDOO\
6LJQLILFDQW
,PSDFW
/HVV7KDQ
6LJQLILFDQWZLWK
0LWLJDWLRQ
,QFRUSRUDWHG
/HVV7KDQ
6LJQLILFDQW
,PSDFW
1R
,PSDFW
:RXOGWKHSURMHFWUHVXOWLQ

D
*HQHUDWLRQRIDVXEVWDQWLDOWHPSRUDU\RU
SHUPDQHQWLQFUHDVHLQDPELHQWQRLVHOHYHOVLQ
WKHYLFLQLW\RIWKHSURMHFWLQH[FHVVRIVWDQGDUGV
HVWDEOLVKHGLQWKHORFDOJHQHUDOSODQRUQRLVH
RUGLQDQFHRULQRWKHUDSSOLFDEOHVWDQGDUGVRI
RWKHUDJHQFLHV"

E
*HQHUDWLRQRIH[FHVVLYHJURXQGERUQH
YLEUDWLRQRUJURXQGERUQHQRLVHOHYHOV"
F
)RUDSURMHFWORFDWHGZLWKLQWKHYLFLQLW\RID
SULYDWHDLUVWULSRUDQDLUSRUWODQGXVHSODQRU
ZKHUHVXFKDSODQKDVQRWEHHQDGRSWHGZLWKLQ
WZRPLOHVRIDSXEOLFDLUSRUWRUSXEOLFXVHDLUSRUW
ZRXOGWKHSURMHFWH[SRVHSHRSOHUHVLGLQJRU
ZRUNLQJLQWKHSURMHFWDUHDWRH[FHVVLYHQRLVH
OHYHOV"

(QYLURQPHQWDO6HWWLQJ
1RLVHPD\EHGHILQHGDVORXGXQSOHDVDQWRUXQZDQWHGVRXQG7KHIUHTXHQF\ SLWFK

DPSOLWXGH
LQWHQVLW\RUORXGQHVV
DQGGXUDWLRQRIQRLVHDOOFRQWULEXWHWRWKHHIIHFWRQDOLVWHQHU RUUHFHSWRUDQGZKHWKHUWKHUHFHSWRUSHUFHLYHVWKHQRLVHDVREMHFWLRQDEOHGLVWXUELQJRU DQQR\LQJ
7KH'HFLEHO6FDOH
G%

7KHGHFLEHOVFDOH
G%
LVDXQLWRIPHDVXUHPHQWWKDWLQGLFDWHVWKHUHODWLYHDPSOLWXGHRIDVRXQG 6RXQGOHYHOVLQG%DUHFDOFXODWHGRQDORJDULWKPLFEDVLV$QLQFUHDVHRIG%UHSUHVHQWVD WHQIROGLQFUHDVHLQDFRXVWLFHQHUJ\ZKLOHG%VLVWLPHVPRUHLQWHQVHG%VLV PRUHLQWHQVHDQGVRRQ,QJHQHUDOWKHUHLVDUHODWLRQVKLSEHWZHHQWKHVXEMHFWLYHQRLVLQHVVRU ORXGQHVVRIDVRXQGDQGLWVDPSOLWXGHRULQWHQVLW\ZLWKHDFKG%LQFUHDVHLQVRXQGOHYHO SHUFHLYHGDVDSSUR[LPDWHO\DGRXEOLQJRIORXGQHVV
6RXQG&KDUDFWHUL]DWLRQ
7KHUHDUHVHYHUDOPHWKRGVRIFKDUDFWHUL]LQJVRXQG7KHPRVWFRPPRQPHWKRGLVWKH³$ ZHLJKWHGVRXQGOHYHO´RUG%$7KLVVFDOHJLYHVJUHDWHUZHLJKWWRWKHIUHTXHQFLHVRIVRXQGWR ZKLFKWKHKXPDQHDULVW\SLFDOO\PRVWVHQVLWLYH7KXVPRVWHQYLURQPHQWDOPHDVXUHPHQWVDUH UHSRUWHGLQG%$PHDQLQJGHFLEHOVRQWKH$VFDOH
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

8.a
November 14, 2022

Packet Pg. 349

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
7DEOH
7\SLFDO2XWGRRUDQG,QGRRU1RLVH/HYHOV
&RPPRQ2XWGRRU$FWLYLWLHV 1RLVH/HYHO

G%$
&RPPRQ,QGRRU$FWLYLWLHV
5RFN%DQG
-HWIO\RYHUDWIHHW

*DVODZQPRZHUDWIHHW

'LHVHOWUXFNDWIHHWDWPSK )RRGEOHQGHUDWIHHW *DUEDJHGLVSRVDODWIHHW
1RLVHXUEDQDUHDGD\WLPH
*DVODZQPRZHUIHHW 9DFXXPFOHDQHUDWIHHW &RPPHUFLDODUHD 1RUPDOVSHHFKDWIHHW
+HDY\WUDIILFDWIHHW
/DUJHEXVLQHVVRIILFH
4XLHWXUEDQGD\WLPH 'LVKZDVKHUQH[WURRP
4XLWHXUEDQQLJKWWLPH 7KHDWHUODUJHFRQIHUHQFHURRP

EDFNJURXQG

4XLHWVXEXUEDQQLJKWWLPH
/LEUDU\
4XLWHUXUDOQLJKWWLPH %HGURRPDWQLJKW

%URDGFDVWUHFRUGLQJVWXGLR

/RZHVWWKUHVKROGRIKXPDQKHDULQJ /RZHVWWKUHVKROGRIKXPDQKHDULQJ 6RXUFH
&DOWUDQV
6RXQGOHYHOVDUHW\SLFDOO\QRWVWHDG\DQGFDQYDU\RYHUDVKRUWWLPHSHULRG7KHHTXLYDOHQW QRLVHOHYHO
/HT
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

SHUFHQWRIWKHWLPH7KH/
YDOXHXVXDOO\FRUUHVSRQGVWRWKHEDFNJURXQGVRXQGOHYHODWWKH PHDVXUHPHQWORFDWLRQ
1RLVHH[SRVXUHRYHUWKHFRXUVHRIDQHQWLUHGD\LVGHVFULEHGE\WKHGD\QLJKWDYHUDJHVRXQG OHYHORU/GQDQGWKHFRPPXQLW\QRLVHHTXLYDOHQWOHYHORU&1(/%RWKGHVFULSWRUVUHSUHVHQW WKHKRXUQRLVHLPSDFWRQDFRPPXQLW\)RU/GQWKHKRXUGD\LVGLYLGHGLQWRDKRXU GD\WLPHSHULRG
$0WR30
DQGDQLQHKRXUQLJKWWLPHSHULRG
30WR$0
DQGDG%

8.a
November 14, 2022

Packet Pg. 350

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
³SHQDOW\´LVDGGHGWRPHDVXUHQLJKWWLPHQRLVHOHYHOVZKHQFDOFXODWLQJWKHKRXUDYHUDJH QRLVHOHYHO)RUH[DPSOHDG%$QLJKWWLPHVRXQGOHYHOZRXOGFRQWULEXWHDVPXFKWRWKH RYHUDOOGD\QLJKWDYHUDJHDVDG%$GD\WLPHVRXQGOHYHO7KH&1(/GHVFULSWRULVVLPLODUWR /GQH[FHSWWKDWLWLQFOXGHVDQDGGLWLRQDOG%$SHQDOW\EH\RQGWKHG%$IRUVRXQGHYHQWV WKDWRFFXUGXULQJWKHHYHQLQJWLPHSHULRG
30WR30
7KHDUWLILFLDOSHQDOWLHVLPSRVHG
GXULQJ/GQDQG&1(/FDOFXODWLRQVDUHLQWHQGHGWRDFFRXQWIRUDUHFHSWRU¶VLQFUHDVHGVHQVLWLYLW\ WRVRXQGOHYHOVGXULQJTXLHWHUQLJKWWLPHSHULRGV
6RXQG3URSDJDWLRQ
7KHHQHUJ\FRQWDLQHGLQDVRXQGSUHVVXUHZDYHGLVVLSDWHVDQGLVDEVRUEHGE\WKHVXUURXQGLQJ HQYLURQPHQWDVWKHVRXQGZDYHVSUHDGVRXWDQGWUDYHOVDZD\IURPWKHQRLVHJHQHUDWLQJ VRXUFH7KHRUHWLFDOO\WKHVRXQGOHYHORIDSRLQWVRXUFHDWWHQXDWHVRUGHFUHDVHVE\G%ZLWK HDFKGRXEOLQJRIGLVWDQFHIURPDSRLQWVRXUFH6RXQGOHYHOVDUHDOVRDIIHFWHGE\FHUWDLQ HQYLURQPHQWDOIDFWRUVVXFKDVJURXQGFRYHU
DVSKDOWYVJUDVVRUWUHHV
DWPRVSKHULF
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±UDWKHUWKH\ZRXOGFRPELQHWRSURGXFHG% 8QGHUFRQWUROOHGFRQGLWLRQVLQDQDFRXVWLFDOODERUDWRU\WKHWUDLQHGKHDOWK\KXPDQHDUFDQ GLVFHUQǦG%FKDQJHVLQVRXQGOHYHOVZKHQH[SRVHGWRVWHDG\VLQJOHǦIUHTXHQF\ ³SXUHǦWRQH´

VLJQDOVLQWKHPLGǦIUHTXHQF\
±+]
UDQJH,QW\SLFDOQRLV\HQYLURQPHQWVFKDQJHVLQ
QRLVHRIWRG%DUHJHQHUDOO\QRWSHUFHSWLEOH+RZHYHULWLVZLGHO\DFFHSWHGWKDWSHRSOHFDQ EHJLQWRGHWHFWVRXQGOHYHOLQFUHDVHVRIG%LQW\SLFDOQRLV\HQYLURQPHQWV)XUWKHUDǦG% LQFUHDVHLVJHQHUDOO\SHUFHLYHGDVDGLVWLQFWO\QRWLFHDEOHLQFUHDVHDQGDǦG%LQFUHDVHLV JHQHUDOO\SHUFHLYHGDVDGRXEOLQJRIORXGQHVV
1RLVH(IIHFWV
1RLVHHIIHFWVRQKXPDQEHLQJVDUHJHQHUDOO\FDWHJRUL]HGDV
x 6XEMHFWLYHHIIHFWVRIDQQR\DQFHQXLVDQFHDQGRUGLVVDWLVIDFW LRQ x ,QWHUIHUHQFHZLWKDFWLYLWLHVVXFKDVVSHHFKVOHHSOHDUQLQJ RUUHOD[LQJ x 3K\VLRORJLFDOHIIHFWVVXFKDV VWDUWOLQJDQGKHDULQJORVV 0RVWHQYLURQPHQWDOQRLVHOHYHOVSURGXFHVXEMHFWLYHRULQWHUIHUHQFHHIIHFWV SK\VLRORJLFDOHIIHFWV
DUHXVXDOO\OLPLWHGWRKLJKQRLVHHQYLURQPHQWVVXFKDVLQGXVWULDOPDQXIDFWXULQJIDFLOLWLHVRU DLUSRUWV
3UHGLFWLQJWKHVXEMHFWLYHDQGLQWHUIHUHQFHHIIHFWVRIQRLVHLVGLIILFXOWGXHWRWKHZLGHYDULDWLRQLQ LQGLYLGXDOWKUHVKROGVRIDQQR\DQFHDQGSDVWH[SHULHQFHVZLWKQRLVH KRZHYHUDQDFFHSWHG
PHWKRGWRGHWHUPLQHDSHUVRQ¶VVXEMHFWLYHUHDFWLRQWRDQHZQRLVHVRXUFHLVWRFRPSDUHLWWRWKH H[LVWLQJHQYLURQPHQWZLWKRXWWKHQRLVHVRXUFHRUWKH³DPELHQW´QRLVHHQYLURQPHQW,QJHQHUDO WKHPRUHDQHZQRLVHVRXUFHH[FHHGVWKHDPELHQWQRLVHOHYHOWKHPRUHOLNHO\LWLVWREH FRQVLGHUHGDQQR\LQJDQGWRGLVWXUEQRUPDODFWLYLWLHV 8QGHUFRQWUROOHGFRQGLWLRQVLQDQDFRXVWLFDOODERUDWRU\WKHWUDLQHGKHDOWK\KXPDQHDULVDEOHWR GLVFHUQǦG%FKDQJHVLQVRXQGOHYHOVZKHQH[SRVHGWRVWHDG\VLQJOHǦIUHTXHQF\ ³SXUHǦWRQH´

VLJQDOVLQWKHPLGǦIUHTXHQF\
±+]
UDQJH,QW\SLFDOQRLV\HQYLURQPHQWVFKDQJHVLQ

8.a
November 14, 2022

Packet Pg. 351

(QYLURQPHQWDO$QDO\VLVDQG)LQGLQJV 3DJH

,QGXVWULDO5RDG/LIH6FLHQFH3URMHFW &LW\RI6DQ&DUORV ,QLWLDO6WXG\0LWLJDWHG1HJDWLYH'HFODUDWLRQ $XJXVW
QRLVHRIWRG%DUHJHQHUDOO\QRWSHUFHSWLEOH+RZHYHULWLVZLGHO\DFFHSWHGWKDWSHRSOHDUH DEOHWREHJLQWRGHWHFWVRXQGOHYHOLQFUHDVHVRIG%LQW\SLFDOQRLV\HQYLURQPHQWV)XUWKHUD G%LQFUHDVHLVJHQHUDOO\SHUFHLYHGDVDGLVWLQFWO\QRWLFHDEOHLQFUHDVHDQGDG%LQFUHDVHLV JHQHUDOO\SHUFHLYHGDVDGRXEOLQJRIORXGQHVVWKDWZRXOGDOPRVWFHUWDLQO\FDXVHDQDGYHUVH UHVSRQVHIURPFRPPXQLW\QRLVHUHFHSWRUV
([LVWLQJ1RLVH(QYLURQPHQW
7KHSULPDU\VRXUFHVRIQRLVHLQ6DQ&DUORVLQFOXGHYHKLFOHVFRPPHUFLDOXVHVDQGDFWLYLWLHV DVVRFLDWHGZLWKQHLJKERUKRRGVDQGVFKRROV7KHSULPDU\VRXUFHRIQRLVHDWWKHSURMHFWVLWHLV IURPWUDIILFRQVXUURXQGLQJURDGZD\V±SULPDULO\IURP+LJKZD\+ROO\6WUHHWDQG,QGXVWULDO 5RDG±DQGIURPDGMDFHQWSURSHUWLHVZKLFKSURGXFHQRLVHIURPDFWLYLWLHVLQSDUNLQJORWV PRYHPHQWRIYDULRXVPDWHULDOVDQGVWDWLRQDU\VRXUFHV
HJKHDWLQJYHQWLODWLRQDQGDLU
FRQGLWLRQLQJ
+9$&
HTXLSPHQW
7KHSURMHFWLVDOVRORFDWHGLQWKH6DQ&DUORV$LUSRUW/DQG8VH &RPSDWLELOLW\3ODQ
$/8&3
DUHD
&&$*
DQGPD\UHFHLYHSHULRGLFQRLVHIURPIOLJKWV
DVVRFLDWHGZLWKWKHDLUSRUW$FFRUGLQJWRWKH$/8&3WKHSURMHFWVLWHLVQRWZLWKLQDSULPDU\IOLJKW SDWKEXWLVZLWKLQ=RQHWKHWUDIILFSDWWHUQ]RQH2IILFHDQG5 'XVHVDUHLGHQWLILHGDV FRPSDWLEOHXVHVLQWKLV]RQH7KHUHDUHQRSULYDWHDLUVWULSVQHDUWKHSURMHFWVLWH QRSULYDWH
DLUVWULSVRUKHOLSRUWVDUHLQWKHFLWLHVRI6DQ&DUORV5HGZRRG&LW\RU%HOPRQW ([LVWLQJDPELHQWVRXQGOHYHOVDWWKHSURMHFWVLWHZHUHPRQLWRUHGIURPDSSUR[LPDWHO\$0RQ 7KXUVGD\2FWREHUWRDSSUR[LPDWHO\$0RQ)ULGD\2FWREHU$PELHQWVRXQG OHYHOVZHUHPHDVXUHGZLWKD/DUVRQ'DYLV0RGHO/[77\SH,VRXQGOHYHOPHWHU 0HDVXUHPHQWVZHUHFROOHFWHGRQPLQXWHLQWHUYDOV:HDWKHUFRQGLWLRQVRQEHWZHHQ2FWREHU WKDQG2FWREHUWKYDULHGEHWZHHQFOHDUDQGPRVWO\FORXG\FRQGLWLRQVZLWKKLJKDQGORZ WHPSHUDWXUHVRIDQGGHJUHHVUHVSHFWLYHO\
2QHORQJWHUP
/7
PHDVXUHPHQW
LHKRXUV
ZDVFROOHFWHGDWWKHSURMHFWVLWH7KHVRXQG
OHYHOPHWHUZDVSODFHGRQWRSRIWKHEXLOGLQJLQWKHQRUWKHDVWHUQSRUWLRQRIWKHSURMHFWVLWHDQG WKHPLFURSKRQHZDVVHWWRDOHYHORIIHHWDERYHWKHEXLOGLQJVXUIDFH7KLVORFDWLRQDQGKHLJKW ZHUHVHOHFWHGWRLGHQWLI\VRXQGOHYHOPHDVXUHPHQWVDWDKHLJKWWKDWLVUHSUHVHQWDWLYHRIZKHUH IXWXUHHPSOR\HHVFRXOGUHVLGHLQWKHEXLOGLQJ
LHRQWKHWKLUGVWRU\RIWKHSURSRVHGEXLOGLQJ

7KHUHVXOWVRIWKHDPELHQWQRLVHPRQLWRULQJDUHVXPPDUL]HGLQ7DEOH,WLVQRWHGWKDW PHDVXUHGDPELHQWQRLVHOHYHOVDUHDFRPSRVLWHRIQRLVHIURPDOOVRXUFHVQHDUDQGIDU,QWKLV FRQWH[WWKHDPELHQWQRLVHOHYHOFRQVWLWXWHVWKHQRUPDORUH[LVWLQJOHYHORIHQYLURQPHQWDOQRLVH DWDJLYHQORFDWLRQ3OHDVHUHIHUWR$SSHQGL[&IRUGHWDLOHGDPELHQWQRLVHPRQLWRULQJUHVXOWV DQGGDWDVKHHWV
7DEOH
([LVWLQJ$PELHQW1RLVH/HYHOV
G%$
DWWKH3URMHFW6LWH
0RQLWRULQJ
6LWH 'XUDWLRQ /PLQ /PD[
+RXUO\/HT5DQJH
/GQ
%
'D\WLPH

San Carlos City CouncilNovember 14, 2022

San Carlos City Council
November 14, 2022