Horizon West Global Road Agreement

1. Horizon West Global Road Agreement September 20, 2011

2. Presentation Outline • Horizon West Background • Global Road Agreement/Term Sheet • Action Requested

3. Horizon West Background Approved Villages • Lakeside Village (1997) • Village of Bridgewater (1999) • Town Center (2004) • Village H (2006) • Village F (2006) • Village I (2010)

4. Horizon West Background “Global Agreement” Negotiations initiated in 2008 to develop infrastructure implementation plan for: • Town Center East • Village H • Village F

5. Horizon West Background • Agreement Principles • Roads identified as Public/Private Projects • Ensure that new development will equitably share in costs of specific road improvements • Road network for each village in place at build-out

6. Horizon West Background • Agreement Parameters • Establish interconnected road network • Privately built/funded infrastructure in exchange for impact fee credits and transportation concurrency vesting • Mechanism to ensure that roads are in place as development occurs

7. Global Road Agreement /Term Sheet • Road Network • Village F • Seidel Road • Village H • CR 545 (Avalon Road) • Town Center East • New Independence Parkway • Porter Road • Horizon Boulevard

8. Village Road Responsibilities

9. Village Road Responsibilities Village F Seidel Roadfrom high school site to Summerlake Park Blvd

10. Village Road Responsibilities Village H • CR 545from Loop Road to Schofield Road

11. Village Road Responsibilities Town Center East New Independence Pkwyfrom SR 429 to Tiny Road Porter Roadfrom south of Horizon Blvd to New Independence Parkway Horizon Boulevardfrom CR 545 to North Porter Road

12. Global Road Agreement /Term Sheet • Developer Responsibilities • Responsible for all phases • Design and permitting • Right-of-way • Construction • Will receive impact fee credits for 95% of expenditures • Right of Way to be capped at $22.5k per acre • Impact fee credits capped at 60% of average County costs • Limited ability to sell credits

13. Global Road Agreement /Term Sheet • Developer Responsibilities • Concurrency vesting limited to specific number of trips by Village • Thresholds for improvements • 12.5% - Preliminary Engineering • 25.0% - Design and Right of Way • 45.0% - Construction for Phase 1 Improvements • 75.0% - Construction forPhase 2 Improvements

14. Global Road Agreement /Term Sheet Impact Fee Revenue & Improvement Costs Comparison (1) Does not reflect 25% reduction in rate schedule adopted in May 2011 (2) Improvement costs reflect approx. 60% of County’s costs

15. Global Road Agreement • Potential Benefits • Encourages economic development activity in master planned community designated for intensive use • Expedites job creation within the Town Center by creating a functional road network • Enhanced connectivity to SR 429 byproviding for better traffic distribution • Provides framework for futurepublic/private agreements

16. Global Road Agreement • Potential Concerns • Future transportation needs not fully addressed • Approach effectively pipelines a significant amount of impact fees (approx. $53M in credits) • Credits for excess capacity and system travel • Will need to amend Impact Fee ordinance

17. Global Road Agreement • Impact Fee Ordinance • O.C. Code Section 23-95(a) limits impact fee credits to “excess capacity” created • Ordinance amendment to allow the BCC to approve a different credit calculation or methodology for significant transportation facilities or systems necessary to provide mobility for development or redevelopment.

18. Global Road Agreement • Status • Draft Term Sheet is complete • Pending BCC approvals, will proceed with negotiating individual village road agreements • Town Center East road agreement being drafted • Draft language for Impact Fee ordinance revision

19. Action Requested Board direction on proceeding with the negotiation of a final agreement based on the Horizon West Global Road Term Sheet.