CITY OF LOS ANGELES

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					CITY OF LOS ANGELES

RECOVERY ZONE FACILITY BOND “RZFB” PROJECT SCREENING APPLICATION INSTRUCTIONS

The attached application is designed to provide sufficient project information to allow the City’s RZFB Steering Committee to determine if the project meets the basic program requirements. These requirements including verifying that the project is within the adopted Recovery Zone (“RZ”), its land uses are permitted under the Federal rules, and the project is in a state of readiness that suggests it can meet the financing issuance date of December 31, 2010. (Given the nature of the bond market this essentially means the bonds are issued no later than November 2010.) The application is limited in scope of information required and requested. All project information must be included on the application form; no supplemental information is requested or desired at this time. Project renderings, site plans, applicant qualifications, letters of support and other materials should not be submitted and if submitted will not be considered by the Steering Committee. Once the application has been reviewed, applicants will be advised if the project meets the minimum eligibility requirements. If your project meets the minimum requirements and you pursue financing you will then be required to submit a timeline of major milestones and to submit monthly progress reports to the Steering Committee. A positive response from the Steering Committee does not reserve any of the City’s RZFB allocation for the project nor does it ensure any such reservation will occur. When the project has demonstrated it has completed its entitlements, has finalized its other financing and has arranged for the necessary credit enhancement for the RZFB, the project will be evaluated again for project readiness and a recommendation made to the City Council and Mayor concerning its funding. When completed the form should be signed, scanned and e–mailed to the following address: cao.debt@lacity.org Any questions should be addressed to: Ms. Natalie Brill Telephone 213 473-7500 Email cao.debt@lacity.org

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INSTRUCTIONS

Project Name: Provide the common name by which the project can be referenced. Project Number: To be filled in by City staff. Section1: Indicate the total amount of RZFB proceeds being requested. Section 2: Identify the borrower and provide contact information. Section 3: Provide both street address and assessors parcels numbers for the property Section 4: Check all boxes that apply, provide square footages where indicated and a brief narrative description. If mixed use, identify the number of residential units and the proportion of other uses. Note: mixed use projects are eligible if the residential component does not represent more than 80% of the gross rental income of the project. Section 5: If known, indicate the square footage being occupied by any anchor tenant and the status of its commitment to the project. If confidential, do not identify tenant. Section 6: Provide an estimate of the direct full time jobs created by the project on–site and the estimated construction jobs. Section 7: Site control is a critical indicator of readiness. Check any boxes that apply. Section 8: Given the federal deadline for issuance of the bonds, project entitlement is a critical factor. Describe the status of all major discretionary acts required for the project to proceed. Section 9: Provide estimated sources and uses of funds. Be aware that RZFB proceeds can only be used to finance depreciable assets. Any non-eligible costs including land acquisition must be financed with other sources. Section10: If any other local, state or federal funds are anticipated for the project identify the source, amount and status of commitments Section 11: Typically, private activity bonds require either credit enhancement in the form of a letter of credit or other surety guarantees in order to be marketable. Alternatively the bonds may be placed privately and underwritten by institutional investors. Provide information as to the likely source and status of such enhancement if known at the time of the application. Section 12: This section is to provide limited additional information the applicant may feel is necessary for the Steering Committee review. Section 13: Screening Criteria Checklist: This checklist is to be completed by the applicant as part of the application. Items 2 through 5 are federal requirements and must be answered in the affirmative for the project to be eligible. Items 6 through 8 are certain of the priority criteria established by the City Council and will guide the Committee in its ultimate recommendations for project funding allocations. A project does not need to meet all these latter criteria to be considered for allocation, depending on the competition for the allocations. With regard to the location of the project relative to the Recovery Zone boundaries, the Recovery Zone includes all redevelopment project areas, the State Enterprise Zones and Federal Empowerment Zone, the Federal Renewal Community, Targeted Employment Areas, the Airport Hospitality Enhancement Zone, census tracts eligible for EDA funding and areas under the Neighborhood Stabilization Program. Projects outside the Recovery Zone may also be eligible. If you require verification of the project being in the RZ, send an email to Ms. Natalie Brill at cao.debt@lacity.org identifying the project address and assessor’s parcel numbers. Acknowledgement and Signature: Carefully read and then sign the acknowledgement at the end of the application. By submitting its application the applicant is agreeing that there is no assurance a project that meets the minimum eligibility criteria and participates in the program will ultimately receive a RZFB allocation, and nor, if allocated, will receive bond issuance approval. These require specific Council and Mayor approval at a later date.

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Project Number (To be assigned by City)

CITY OF LOS ANGELES

RECOVERY ZONE FACILITY BOND (RZFB) PROJECT SCREENING APPLICATION
(PRIVATE ACTIVITY BONDS)

Section 1. Project and Amount of RZFB Requested
Project Name Requested Amount for RZFB Bonds Date of Application $ Council District #

Section 2. Applicant Information
Borrower Contact Person

Address

Telephone

Email

Section 3. Project Address / Assessor Parcel Numbers (APNs)
Address APNs

Section 4. Project Description
Use: Retail Office Industrial Hotel Mixed Use Other

Site Size (Sq. Ft.)

Bldg. Size (Sq. Ft.)

Brief Narrative Description (if mixed use, include proportion of uses and number of residential units, if applicable)

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Project Number (To be assigned by City)

Section 5. Status of Major Tenants / User Commitment
Major Tenant Sq. Ft. Description

Status of Commitment:

L.O.I.

Draft Lease

Lease

Owner/User

Section 6. Number & Type of Jobs to be Created
Permanent Jobs (full time equivalent) Construction Jobs

Section 7. Site Control (Fee Ownership, Long Term Lease, Option, etc.)
Form of Control: Own Site Long Term Lease In Escrow Option

Other (Specify)

Section 8. Entitlements (incl., CEQA/NEPA, Discretionary Actions Required and Timing)
CEQA Actions: NEPA Actions: Complete Complete Pending (explain below) Pending (explain below) Complete Requires Amendments

General Plan/Community Plan: Zoning: Variances: In Place None

Requires Zone Change Minor Major

Status of Above ( if in progress) and Any Other Major Discretionary Acts Required

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Project Number (To be assigned by City)

Section 9. Projected Sources & Uses of Funds
Projected Uses of Funds Acquisition Cost Other Development Costs Total Development Budget Projected Sources of Funds Equity Tax Exempt RZFB Bonds Other Private Funds Other Public Funds (Specify in Section 10) Total Sources of Funds $ $ $

$ $ $ $ $

Section 10. Other Public Funds
Describe the source, amount and status of any other public funds assumed to be included in the project and the status of any commitments.

Section 11. Status of Procuring All Financing/Credit Enhancement
1. Equity

2. Bank Letter of Credit (if Public Sale of Bonds) 3. Private Placement Investors (if Private Placement) 4. Other Credit Enhancement (Specify)

Section 12. Other Information

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Project Number (To be assigned by City)

Section 13. Check List
YES NO UNKNOWN

1. Is the project in the Recovery Zone? 2. Are the assets being financed depreciable? 3. Does the project being bond - financed exclude
land, residential rental (other than mixed use), short-term assets or refinancing?

4. Does the project exclude a golf course, country
club, racetrack, gambling facility, store whose principal business is sale of alcohol for offsite consumption, hot tub or suntanning facility, or massage parlors?

5. Is the Borrower able to secure a letter of credit
from a rated bank or a purchase commitment from an institutional investor?

6. Will borrower pay prevailing wages for
construction?

7. Will all permanent employees of the project be
paid living wages? (As defined in City of Los Angeles Living Wage Ordinance)*

8. Will the project be certified LEED Silver or better? 9. Is the project within ½ mile of a fixed rail transit
station (Transit-Oriented District)? Which one(s)?

* Fact Sheet: http://bca.lacity.org/site/pdf/lwo/lwo%20q%20&%20a%20rev%208_06.pdf Wage Chart: http://bca.lacity.org/site/pdf/lwo/wage%20Rates%20Chart.pdf

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Project Number (To be assigned by City)

Certification of Project Applicant
The undersigned certifies that the above information is correct as of the date of this application. The undersigned understands that the information provided will be used to determine the project’s basic eligibility for the RZFB program. Acceptance of the application by the City and any future actions notifying the applicant to proceed do not represent a commitment to reserve an allocation or issue bonds on behalf of the project. Such a commitment will be subject to future City Council and Mayor approval. Any costs incurred by the applicant in pursuing RZFB financing will be borne by the applicant and are at applicant’s risk in the event the City does not approve the project financing for any reason.

Applicant acknowledges that the information submitted in this Application and all subsequent submissions are subject to the California Public Records Act and unless exempt from disclosure must be made available to members of the public upon request.

Understood and Agreed Signature of Applicant Date Signature

Name

Title

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