HomeMy WebLinkAbout11-19-2012 Agenda (2)
&LW\&RXQFLO0HHWLQJ
1RYHPEHU 30
$XEXUQ&LW\+DOO
$*(1'$
:DWFKWKHPHHWLQJYLGHR
0HHWLQJYLGHRVDUHQRWDYDLODEOHXQWLO
KRXUVDIWHUWKHPHHWLQJKDVFRQFOXGHG
,&$//7225'(5
$)ODJ6DOXWH
%5ROO&DOO
&$QQRXQFHPHQWV$SSRLQWPHQWVDQG3UHVHQWDWLRQV
'$JHQGD0RGLILFDWLRQV
,,&,7,=(1,138738%/,&+($5,1*6 &255(6321'(1&(
$3XEOLF+HDULQJV
3UHOLPLQDU\%LHQQLDO%XGJHW 3DUWULGJH&ROHPDQ
$OOSHUVRQVLQWHUHVWHGDUHHQFRXUDJHGWRSDUWLFLSDWHLQWKLVSXEOLFKHDULQJE\
PDNLQJFRPPHQWVSURSRVDOVDQGVXJJHVWLRQVIRUWKH&LW\&RXQFLODQG0D\RU
WRFRQVLGHUSULRUWRDGRSWLRQRIWKH&LW\RI$XEXUQ%LHQQLDO
%XGJHW
%$XGLHQFH3DUWLFLSDWLRQ
7KLVLVWKHSODFHRQWKHDJHQGDZKHUHWKHSXEOLFLVLQYLWHGWRVSHDNWRWKH&LW\
&RXQFLORQDQ\LVVXH7KRVHZLVKLQJWRVSHDNDUHUHPLQGHGWRVLJQLQRQWKHIRUP
SURYLGHG
&&RUUHVSRQGHQFH
7KHUHLVQRFRUUHVSRQGHQFHIRU&RXQFLOUHYLHZ
,,,&281&,/&200,77((5(32576
$0XQLFLSDO6HUYLFHV
1RYHPEHU0LQXWHV
3HOR]D
%3ODQQLQJ &RPPXQLW\'HYHORSPHQW
1RYHPEHU0LQXWHV
%DFNXV
&3XEOLF:RUNV
1RYHPEHU0LQXWHV
:DJQHU
')LQDQFH
1RYHPEHU0LQXWHV
3DUWULGJH
Page 1 of 281
(/HV*RYH&RPPXQLW\&DPSXV
1RYHPEHU6SHFLDO0HHWLQJ
:DJQHU
)&RXQFLO2SHUDWLRQV&RPPLWWHH
1RYHPEHU0LQXWHV
%DFNXV
,9&216(17$*(1'$
$OOPDWWHUVOLVWHGRQWKH&RQVHQW$JHQGDDUHFRQVLGHUHGE\WKH&LW\&RXQFLOWREH
URXWLQHDQGZLOOEHHQDFWHGE\RQHPRWLRQLQWKHIRUPOLVWHG
$1RYHPEHU5HJXODU0HHWLQJ0LQXWHV
%&ODLPV9RXFKHUV 3DUWULGJH&ROHPDQ
&ODLPVFKHFNQXPEHUVWKURXJKLQWKHDPRXQWDQG
GDWHG1RYHPEHU
&3D\UROO9RXFKHUV 3DUWULGJH&ROHPDQ
3D\UROOFKHFNQXPEHUVWKURXJKLQWKHDPRXQWRIDQG
HOHFWURQLFGHSRVLWWUDQVPLVVLRQVLQWKHDPRXQWRIIRUDJUDQGWRWDORI
IRUWKHSHULRGFRYHULQJ1RYHPEHU
'$QQXDO2Q&DOO$JUHHPHQWV
:DJQHU'RZG\
&LW\&RXQFLODSSURYHWKH$QQXDO2Q&DOO3URIHVVLRQDO6HUYLFH$JUHHPHQWVDQG
$PHQGPHQWVIRU
(3XEOLF:RUNV3URMHFW1R&3
:DJQHU'RZG\
&LW\&RXQFLODZDUG&RQWUDFW1RWR6FDUVHOOD%URWKHUV,QFRQWKHLUORZELG
RI SOXV:DVKLQJWRQ6WDWHVDOHVWD[RIIRUDWRWDOFRQWUDFW
SULFHRI IRU3URMHFW1R&3 :HOO7UDQVPLVVLRQ/LQH
)3XEOLF:RUNV3URMHFW1R&3
:DJQHU'RZG\
&LW\&RXQFLODSSURYH)LQDO3D\(VWLPDWH1RWR6PDOO:RUNV&RQWUDFW1R
LQWKHDPRXQWRIDQGDFFHSWFRQVWUXFWLRQRI3URMHFW1R&3
$UWHULDODQG&ROOHFWRU&UDFN6HDO3URMHFW
$&7,215(48(67(' &LW\&RXQFLODSSURYHWKH&RQVHQW$JHQGD
981),1,6+('%86,1(66
7KHUHLVQRXQILQLVKHGEXVLQHVV
9,1(:%86,1(66
7KHUHLVQRQHZEXVLQHVV
9,,25',1$1&(6
$2UGLQDQFH1R
3HOR]D6Q\GHU+HLG/HH
$QRUGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQUHODWHGWR
DQLPDOFRQWURODPHQGLQJ7LWOHRIWKH$XEXUQ&LW\&RGHE\DGGLQJQHZ&KDSWHUV
DQGRIWKH&LW\&RGHDPHQGLQJ&KDSWHURIWKH&LW\&RGHDQG
UHSHDOLQJ&KDSWHURIWKH&LW\&RGH
Page 2 of 281
$&7,215(48(67(' &LW\&RXQFLODGRSW2UGLQDQFH1R
%2UGLQDQFH1R
3DUWULGJH&ROHPDQ
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDXWKRUL]LQJWKH
OHY\RIUHJXODUSURSHUW\WD[HVE\WKH&LW\RI$XEXUQIRUFROOHFWLRQLQ
$&7,215(48(67(' &LW\&RXQFLODGRSW2UGLQDQFH1R
&2UGLQDQFH1R
3DUWULGJH&ROHPDQ
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDPHQGLQJ
6HFWLRQRIWKH$XEXUQ&LW\&RGHUHODWLQJWRWKHWD[RQVRFLDOFDUGJDPHV
$&7,215(48(67(' &LW\&RXQFLODGRSW2UGLQDQFH1R
'2UGLQDQFH1R
%DFNXV6Q\GHU
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDSSURYLQJWKH
UHTXHVWRI7HUUDFH9LHZ3URSHUWLHV//&IRUUH]RQLQJRIWZRSDUFHOVWRWDOLQJ
DSSUR[LPDWHO\DFUHVIURP&OLJKWFRPPHUFLDOWR&KHDY\FRPPHUFLDOWR
LPSOHPHQWWKH&RPSUHKHQVLYH3ODQDQGDPHQGLQJWKH&LW\
V]RQLQJPDSV
$&7,215(48(67(' &LW\&RXQFLODGRSW2UGLQDQFH1R
(2UGLQDQFH1R
3HOR]D&ROHPDQ
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDPHQGLQJ
6HFWLRQRIWKH$XEXUQ&LW\&RGHUHODWLQJWRVROLGZDVWHFROOHFWLRQFKDUJHV
$&7,215(48(67(' &LW\&RXQFLODGRSW2UGLQDQFH1R
9,,,5(62/87,216
$5HVROXWLRQ1R
3HOR]D6Q\GHU
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDXWKRUL]LQJWKH
0D\RUDQG&LW\&OHUNWRPRGLI\WKH&LW\RI$XEXUQPDVWHUIHHVFKHGXOHIRUWKH
SXUSRVHRIDGGLQJDQHZVHFWLRQHQWLWOHG$QLPDO/LFHQVH)HHV
$&7,215(48(67(' &LW\&RXQFLODGRSW5HVROXWLRQ1R
%5HVROXWLRQ1R
3HOR]D&ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\2I$XEXUQ:DVKLQJWRQVXSSRUWLQJ
FUHDWLRQRIDVHFXUHFRQYHQLHQWPHGLFLQHUHWXUQSURJUDPLQ.LQJ&RXQW\WRUHGXFH
WKHSXEOLFVDIHW\DQGHQYLURQPHQWDOLPSDFWVRIXQZDQWHGPHGLFLQH
$&7,215(48(67(' &LW\&RXQFLODGRSW5HVROXWLRQ1R
&5HVROXWLRQ1R
:DJQHU'RZG\
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQVHWWLQJDSXEOLF
KHDULQJWRFRQVLGHUWKHYDFDWLRQRIQG6WUHHW1(EHWZHHQVW6WUHHW1(DQGUG
6WUHHW1(DQGWKHDOOH\EHWZHHQQG6WUHHW1(DQGUG6WUHHW1(HDVWRI(6WUHHW
1(ZLWKLQWKH&LW\RI$XEXUQ:DVKLQJWRQ
$&7,215(48(67(' &LW\&RXQFLODGRSW5HVROXWLRQ1R
'5HVROXWLRQ1R
3DUWULGJH&ROHPDQ
Page 3 of 281
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDPHQGLQJWKH
&LW\RI$XEXUQ)HH6FKHGXOHWRDGMXVWIRUIHHV
$&7,215(48(67(' &LW\&RXQFLODGRSW5HVROXWLRQ1R
(5HVROXWLRQ1R
3DUWULGJH&ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQUHTXHVWLQJ
&RQJUHVVWRVWRSIHGHUDOEXGJHWVHTXHVWUDWLRQIURPJRLQJLQWRHIIHFW
$&7,215(48(67(' &LW\&RXQFLODGRSW5HVROXWLRQ1R
,;5(32576
$WWKLVWLPHWKH0D\RUDQG&LW\&RXQFLOPD\UHSRUWRQVLJQLILFDQWLWHPVDVVRFLDWHGZLWK
WKHLUDSSRLQWHGSRVLWLRQVRQIHGHUDOVWDWHUHJLRQDODQGORFDORUJDQL]DWLRQV
$)URPWKH&RXQFLO
%)URPWKH0D\RU
;$'-28510(17
$JHQGDVDQGPLQXWHVDUHDYDLODEOHWRWKHSXEOLFDWWKH&LW\&OHUN
V2IILFHRQWKH&LW\ZHEVLWH
KWWS ZZZDXEXUQZDJRY DQGYLDHPDLO&RPSOHWHDJHQGDSDFNHWVDUHDYDLODEOHIRUUHYLHZ
DWWKH&LW\&OHUN
V2IILFH
'HQRWHVDWWDFKPHQWVLQFOXGHGLQWKHDJHQGDSDFNHW
Page 4 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU0LQXWHV
'DWH
1RYHPEHU
'HSDUWPHQW
3ROLFH
$WWDFKPHQWV
1RYHPEHU0HHWLQJ0LQXWHV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
&RXQFLOPHPEHU 3HOR]D 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 06
AUBURN * MORE THAN YOU IMAGINEDMS.1 Page 5 of 281
0XQLFLSDO6HUYLFHV&RPPLWWHH
1RYHPEHU 30
&RXQFLO&RQIHUHQFH5RRP
0,187(6
,&$//7225'(5
&KDLU3HOR]DFDOOHGWKHPHHWLQJWRRUGHUDW SPLQWKH&RXQFLO
&RQIHUHQFH5RRPRI&LW\+DOO:HVW0DLQ6WUHHW$XEXUQ:$
$5ROO&DOO
0HPEHUVSUHVHQW &KDLU3HOR]D9LFH&KDLU:D\QH2VERUQH
0HPEHU:DOHV
6WDIISUHVHQW 0D\RU3HWH/HZLV&RXQFLOPHPEHU-RKQ3DUWULGJH
$VVLVWDQW&KLHIRI3ROLFH%LOO3LHUVRQ)LQDQFH'LUHFWRU6KHOOH\
&ROHPDQ3ODQQLQJDQG'HYHORSPHQW'LUHFWRU.HYLQ6Q\GHU3DUNV
$UWVDQG5HFUHDWLRQ'LUHFWRU'DU\O)DEHU&LW\$WWRUQH\'DQ+HLG
$GPLQLVWUDWLYHDQG%XVLQHVV6HUYLFHV0DQDJHU'DUFLH+DQVRQ6ROLG
:DVWHDQG5HF\FOLQJ6XSHUYLVRU-RDQ1HOVRQ3ROLFH6HFUHWDU\
+HDWKHU6KDZDQG3ROLFH6HFUHWDU\6FULEH7HUU\0HQGR]D2WKHUV
SUHVHQW $XEXUQ9DOOH\+XPDQH6RFLHW\3UHVLGHQW'RQ(GZDUGV
FLWL]HQV-RKQ3LQVNHUDQG6FRW3RQGHOLFNDQGMREVKDGRZVWXGHQW
6DUD0DUWHOO
%$QQRXQFHPHQWV
&$JHQGD0RGLILFDWLRQV
,,&216(17$*(1'$
$2FWREHU0HHWLQJ0LQXWHV
9LFH&KDLU2VERUQHPRYHGWRDFFHSWWKH0LQXWHVDVSUHVHQWHG
0HPEHU:DOHVVHFRQGHG&KDLU3HOR]DFRQFXUUHG
027,213$66('
,,,$&7,21
$5HVROXWLRQ1R &ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
VXSSRUWLQJFUHDWLRQRIDVHFXUHFRQYHQLHQWPHGLFLQHUHWXUQSURJUDP
LQ.LQJ&RXQW\WRUHGXFHWKHSXEOLFVDIHW\DQGHQYLURQPHQWDOLPSDFWV
RIXQZDQWHGPHGLFLQH&RPPLWWHHGLVFXVVLRQIROORZHG
Page 1 of 4
MS.1 Page 6 of 281
9LFH&KDLU2VERUQHPRYHGWRIRUZDUGWRIXOO&RXQFLOIRUFRQVLGHUDWLRQ
0HPEHU:DOHVVHFRQGHG&KDLU3HOR]DFRQFXUUHG
027,213$66('
%2UGLQDQFH1R &ROHPDQ
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DPHQGLQJ6HFWLRQRIWKH$XEXUQ&LW\&RGHUHODWLQJWR6ROLG
:DVWH&ROOHFWLRQ&KDUJHV7KH&LW\KDVUHYLHZHGLWVVROLGZDVWHIXQG
EDODQFHDQGXWLOLW\UDWHVDQGKDVGHWHUPLQHGWKDWWKHUHLVDQHHGWR
VWDELOL]HWKHIXQGEDODQFH,QFUHDVHVLQUHVLGHQWLDODQGFRPPHUFLDO
FROOHFWLRQUDWHVWREHFKDUJHGE\WKHFLW\IRUVROLGZDVWHVHUYLFHVZLOO
WDNHHIIHFW-DQXDU\DQGDJDLQLQ-DQXDU\$VVXFK
WKHVXEVLG\FXUUHQWO\SURYLGHGE\WKHFLW\ZLOOHQGZLWKLQIRXUWRILYH
\HDUV&RPPLWWHHGLVFXVVLRQIROORZHG
9LFH&KDLU2VERUQHPRYHGWRIRUZDUGWRIXOO&RXQFLOIRUFRQVLGHUDWLRQ
0HPEHU:DOHVVHFRQGHG&KDLU3HOR]DFRQFXUUHG
027,213$66('
,9',6&866,21,7(06
$)LQDQFLDO2SWLRQV$YDLODEOHWRWKH&LW\RI$XEXUQ &ROHPDQ
&KDLU3HOR]DDGYLVHGWKDWWKLVLWHPZDVUHPRYHGIURPWKHDJHQGD
%5HVROXWLRQ1R &ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DPHQGLQJWKH&LW\RI$XEXUQ)HH6FKHGXOHWRDGMXVWIRUIHHV,Q
WKHFRXUVHRIUHYLHZLQJ&LW\IHHVDQGLQNHHSLQJZLWKWKHLQWHQWWR
PDNH&LW\IHHVUHIOHFWLYHRIDFWXDOFRVWVLWLVDSSURSULDWHWRUHYLVHDQG
DPHQGWKHIHHVDQGFKDUJHVIRU&LW\DSSOLFDWLRQVDQGDFWLYLWLHVIRU
ZKLFKIHHVDUHFKDUJHGWRDGMXVWIRUFKDQJHVWREHHIIHFWLYH-DQXDU\
&RPPLWWHHGLVFXVVLRQIROORZHG
&$XEXUQ*ROI&RXUVHDQG6FKRRO'LVWULFW*ROI3OD\3ROLF\'LVFXVVLRQ
)DEHU
'LUHFWRU'DU\O)DEHUSUHVHQWHGLQIRUPDWLRQWRWKH&RPPLWWHHRQ
WKHORQJDQGSRVLWLYHUHODWLRQVKLSEHWZHHQWKH&LW\RI$XEXUQDQGWKH
$XEXUQ6FKRRO'LVWULFWUHFLSURFDWLQJ$WKOHWLF)LHOGVDQG
*\PQDVLXP6FKRROVSDFH3UHVHQWO\WKHRQO\WLPHWKHFLW\LVFKDUJHG
IRUDQDFWLYLW\LVZKHQWKHDFWLYLW\UHTXLUHVDQDGGLWLRQDOFRVWVXFKDV
8QLRQ/DERUIRU6RXQG/LJKWRU&XVWRGLDO7KH&LW\KDVQRWFKDUJHG
WKH$6'IRUDQ\DGGLWLRQDOFRVWIRUSDUNDWKOHWLFILHOGVRUWKH*ROI
&RXUVH7KH$XEXUQ*ROI&RXUVHLVWKHKRPHWRERWK$XEXUQDQG
Page 2 of 4
MS.1 Page 7 of 281
$XEXUQ0RXQWDLQYLHZ9DUVLW\-9%R\VDQG*LUOVJROIWHDPV2SWLRQV
WRFRQVLGHULQFOXGHFKDUJLQJDIODWIHHSHUWHDPFKDUJLQJDSHUURXQG
GLVFRXQWHGUDWH SHUURXQG FKDUJLQJDIHHEDVHGRQWKH
VL]HRIWHDPDQGDQRWWRH[FHHGQXPEHURIURXQGVDQGFRQWLQXLQJ
WKHVDPHSURFHGXUH&RPPLWWHHGLVFXVVLRQIROORZHGDQGLWZDV
UHTXHVWHGWKDW'LUHFWRU)DEHUSURYLGHDGGLWLRQDOLQIRUPDWLRQDWWKLV
&RPPLWWHH
VPHHWLQJRQ'HFHPEHU
'2UGLQDQFH1R$QLPDO&RQWURODQG/LFHQVLQJ 6Q\GHU
3ODQQLQJDQG'HYHORSPHQW'LUHFWRU.HYLQ6Q\GHUSUHVHQWHGWRWKH
FRPPLWWHHUHJDUGLQJUHYLVHGGUDIW2UGLQDQFHDPHQGPHQWVWR
7LWOH $QLPDOV SHUWDLQLQJWRDQLPDOFRQWURODQGDQLPDOOLFHQVHV7KH
&LW\RI$XEXUQZLOOEHWDNLQJRYHUDQLPDOFRQWURODQGOLFHQVLQJVHUYLFHV
IURP.LQJ&RXQW\HIIHFWLYH-DQXDU\&XUUHQWO\WKH&LW\
FRQWUDFWVZLWK.LQJ&RXQW\DQGWKURXJKDQ,QWHUORFDO$JUHHPHQW
DGRSWHGSRUWLRQVRIWKHLU7LWOH&RGHUHODWHGWRDQLPDOFRQWURO
%HJLQQLQJLQWKH&LW\LVQRORQJHUUHTXLUHGWRDGRSW.LQJ
&RXQW\
VDQLPDOFRQWUROFRGH$VVXFKFLW\VWDIIEHOLHYHLWLVPRUH
HIILFLHQWDQGEHQHILFLDOWRUHYLVHH[LVWLQJSRUWLRQVRIWKH&LW\
V&RGH
DQGDGGLQJZKHUHQHFHVVDU\QHZODQJXDJH,QSUHYLRXVPHHWLQJV
&LW\VWDIISUHVHQWHGGUDIWVRI2UGLQDQFH1RWRWKLV&RPPLWWHHIRU
GLVFXVVLRQ2Q1RYHPEHU'LUHFWRU6Q\GHUSUHVHQWHGWKH
GUDIW2UGLQDQFHWRWKH$XEXUQ9DOOH\+XPDQH6RFLHW\%RDUGDQGWKH\
KDYHQRRXWVWDQGLQJLVVXHVRUFRQFHUQVZLWKWKHSURSRVHG
DPHQGPHQWV&RPPLWWHHGLVFXVVLRQIROORZHGZLWKWKH
UHFRPPHQGDWLRQWRUHYLVHODQJXDJHLQWKHODVWSDUWRIVHFWLRQ
0HPEHU:DOHVPRYHGWRIRUZDUGDVDPHQGHGWRIXOO&RXQFLOIRU
FRQVLGHUDWLRQ9LFH&KDLU2VERUQHVHFRQGHG&KDLU3HOR]D
FRQFXUUHG
027,213$66('
(5HVROXWLRQ1R)HH6FKHGXOH 6Q\GHU
'LUHFWRU.HYLQ6Q\GHUSURYLGHGDQHZDQGUHYLVHG5HVROXWLRQ1R
UHODWLQJWRPRGLILFDWLRQVWRWKH&LW\RI$XEXUQ
V0DVWHU)HH
6FKHGXOHIRU$QLPDO/LFHQVH)HHV5HVROXWLRQ1R$WSUHYLRXV
PHHWLQJVWKH&RPPLWWHHGLVFXVVHGIHHVUHODWHGWRWDNLQJRYHUDQLPDO
FRQWURODQGOLFHQVLQJVHUYLFHVIURP.LQJ&RXQW\HIIHFWLYH-DQXDU\
$WWKDWWLPHVWDIIUHFRPPHQGHGIHHVVLPLODUWR.LQJ&RXQW\
H[FHSWIRUDLQFUHDVHRYHUFXUUHQWIHHVFKDUJHGE\.LQJ&RXQW\
IRUMXYHQLOHDQLPDOOLFHQVHVDOWHUHGDQLPDOOLFHQVHVDQGXQDOWHUHG
DQLPDOOLFHQVHV+RZHYHUDIWHUVXEVHTXHQWGLVFXVVLRQVVWDIILV
UHFRPPHQGLQJWKDWWKH&LW\PDLQWDLQWKHRULJLQDOIHHVFKHGXOHIRUWKLV
ILUVW\HDURIRSHUDWLRQDQGWRUHYLVLWWKHIHHVFKHGXOHDJDLQQH[W\HDU
Page 3 of 4
MS.1 Page 8 of 281
IRU&RPPLWWHH0HPEHU/DUJR:DOHVDJUHHVZLWKWKHQHZVWDII
UHFRPPHQGDWLRQDQGEHOLHYHVWKDWLWLVLPSRUWDQWIRUWKHFRPPXQLW\WR
VHHDVPRRWKDQGVLPSOHWUDQVLWLRQIURP.LQJ&RXQW\WRWKH$XEXUQ
9DOOH\+XPDQH6RFLHW\7KHFRVWWRWKH&LW\LQLQRUGHUWR
PDLQWDLQWKHRULJLQDOIHHVFKHGXOHLVPLQLPDOEXWKDVDVLJQLILFDQW
LPSDFWRQWKHILUVW\HDURIRSHUDWLRQIRUWKH$9+6&RPPLWWHH
GLVFXVVLRQIROORZHG
9LFH&KDLU2VERUQHPRYHGWRIRUZDUGDVDPHQGHGWRIXOO&RXQFLOIRU
FRQVLGHUDWLRQ0HPEHU:DOHVVHFRQGHG&KDLU3HOR]DFRQFXUUHG
027,213$66('
)0DWUL[
7KHIROORZLQJXSGDWHVKDYHEHHQPDGHWRWKH0DWUL[
,WHP3 6WDWXVXSGDWHG VHFRQGWRODVWVHQWHQFHUHPRYHG
,WHP3 6WDWXVXSGDWHG ODVWVHQWHQFHUHPRYHG
,WHP3 6WDWXVXSGDWHG
,WHP3 6WDWXVXSGDWHG SRUWLRQRIODVWVHQWHQFHUHPRYHG
,WHP 3 6WDWXVXSGDWHG
,WHP3 7KHUHYLHZGDWHZDVXSGDWHGWR6WDWXVXSGDWHG
9$'-28510(17
7KHPHHWLQJZDVDGMRXUQHGDW SP7KHQH[WPHHWLQJRIWKH
0XQLFLSDO6HUYLFHV&RPPLWWHHLV0RQGD\1RYHPEHUDW SP
LQWKH&RXQFLO&RQIHUHQFH5RRP&LW\+DOO:0DLQ6WUHHW$XEXUQ
:$
6LJQHGWKLVBBBBBBBBBBBGD\RI1RYHPEHU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
%LOO3HOR]D&KDLU7HUU\0HQGR]D3ROLFH6HFUHWDU\6FULEH
Page 4 of 4
MS.1 Page 9 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU0LQXWHV
'DWH
1RYHPEHU
'HSDUWPHQW
3ODQQLQJDQG'HYHORSPHQW
$WWDFKPHQWV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
)RULQIRUPDWLRQRQO\VHHDWWDFKHGPLQXWHV
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
2WKHU 3ODQQLQJ'HSDUWPHQW
&RXQFLOPHPEHU %DFNXV 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 3&'
AUBURN * MORE THAN YOU IMAGINEDPCD.1 Page 10 of 281
3ODQQLQJDQG&RPPXQLW\
'HYHORSPHQW
1RYHPEHU 30
$QQH[&RQIHUHQFH5RRP
0,187(6
,&$//7225'(5
&KDLU1DQF\%DFNXVFDOOHGWKHPHHWLQJWRRUGHUDW SPLQ$QQH[
&RQIHUHQFH5RRPORFDWHGRQWKHVHFRQGIORRURIWKH2QH0DLQ
3URIHVVLRQDO3OD]D2QH(DVW0DLQ6WUHHW$XEXUQ:DVKLQJWRQ
$5ROO&DOO
&KDLU1DQF\%DFNXV9LFH&KDLU3DUWULGJHDQG0HPEHU-RKQ+ROPDQ
ZHUHSUHVHQW$OVRSUHVHQWZHUH0D\RU3HWH/HZLV 3ODQQLQJDQG
'HYHORSPHQW'LUHFWRU.HYLQ6Q\GHU3ODQQLQJ0DQDJHU(OL]DEHWK
&KDPEHUODLQ(QJLQHHULQJ$LGH$PEHU0XQG3ULQFLSDO3ODQQHU-HII
'L[RQDQG3ODQQLQJ6HFUHWDU\7LQD.ULVV
0HPEHUVRIWKHDXGLHQFHSUHVHQWZHUH 6FRWW3RQGHOHFN-RKQ
3LQVNHUDQG%RE.HQZRUWK\&DSLWDO3URMHFWV&RRUGLQDWRU$XEXUQ
6FKRRO'LVWULFW
%$QQRXQFHPHQWV
3UHVHQWDWLRQ 6Q\GHU
3ODQQLQJ'LUHFWRU.HYLQ6Q\GHULQWURGXFHGWKH&LW\
VFRQWUDFWHG
+HDULQJ([DPLQHU3KLO2OEUHFKWV2OEUHFKWVDQG$VVRFLDWHV
3/&&WRXSGDWHWKH&RPPLWWHHRQDFWLYLWLHVDQGREVHUYDWLRQV
GXULQJ
+HDULQJ([DPLQHU3KLO2OEUHFKWVVWDWHGWKH+HDULQJ([DPLQHU
RQO\LVVXHGHLJKWGHFLVLRQVLQWKHSDVWWZHOYHPRQWKV7KHHLJKW
GHFLVLRQVZHUHFRPSRVHGRIUH]RQHVWKUHHVSHFLDOH[FHSWLRQV
RQHFRQGLWLRQDOXVHSHUPLWDQGRQHSUHOLPLQDU\SODW$OO
DSSOLFDWLRQVZHUHDSSURYHGRUUHFRPPHQGHGIRUDSSURYDO7KHUH
ZDVQRVLJQLILFDQWRSSRVLWLRQWRDQ\GHYHORSPHQWSURSRVDODQG
WKHSXEOLFUDUHO\FDPHWRWHVWLI\IRURUDJDLQVWDSURMHFW
&RPPLWWHHVWDIIDQG0U2OEUHFKWVGLVFXVVHGWKH$XEXUQ&LW\
&RGHUH]RQHVWDQGDUGVDQGVSHFLDOH[FHSWLRQVUHODWHG
WRQRQFRQIRUPLQJXVHV
7KH&RPPLWWHHWKDQNHG0U2OEUHFKWVIRUKLVZRUNDVWKH&LW\¶V
FRQWUDFWHG+HDULQJ([DPLQHUPage 1 of 4
PCD.1 Page 11 of 281
&$JHQGD0RGLILFDWLRQV
7KH1RYHPEHU3ODQQLQJ &RPPXQLW\'HYHORSPHQW
&RPPLWWHHDJHQGDSXEOLVKHGRQ)ULGD\1RYHPEHU LV
PRGLILHGDVIROORZV
7KHDJHQGDPRGLILFDWLRQUHPRYHVIURP,,,',6&866,21
$)LQDQFLDO2SWLRQV$YDLODEOHWRWKH&LW\RI$XEXUQ
,,&216(17$*(1'$
$0LQXWHV2FWREHU 6Q\GHU
0HPEHU+ROPDQPRYHGDQG9LFH&KDLU3DUWULGJHVHFRQGHGWR
DSSURYHWKH2FWREHUPLQXWHVDVZULWWHQ
0RWLRQFDUULHGXQDQLPRXVO\
,,,',6&866,21,7(06
$)LQDQFLDO2SWLRQV$YDLODEOHWRWKH&LW\RI$XEXUQ &ROHPDQ
7KLVLWHPZDVUHPRYHGIURPWKH$JHQGD
%5HVROXWLRQ1R 0XQG
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
6HWWLQJDSXEOLFKHDULQJWRFRQVLGHUWKHYDFDWLRQRIQG6WUHHW1(
EHWZHHQVW6WUHHW1(DQGUG6WUHHW1(DQGWKHDOOH\EHWZHHQQG
6WUHHW1(DQGUG6WUHHW1((DVWRI(6WUHHW1(ZLWKLQWKH&LW\RI
$XEXUQ:DVKLQJWRQ
(QJLQHHULQJ7HFKQLFLDQ$PEHU0XQGSUHVHQWHGWKHVWDIIUHSRUW
$XEXUQ6FKRRO'LVWULFW1RKDVDSSOLHGWRWKH&LW\IRUYDFDWLRQRI
WKHULJKWRIZD\RIQG6WUHHW1(EHWZHHQVW6WUHHW1(DQGUG
6WUHHW1(HDVWRI(6WUHHW1(DQGWKHULJKWRIZD\RIWKHDOOH\
EHWZHHQQG6WUHHW1(DQGUG6WUHHW1(HDVWRI(6WUHHW1(VKRZQ
RQ([KLELW%7KHDSSOLFDQWFXUUHQWO\RZQVDOORIWKHVXUURXQGLQJ
SDUFHOVDQGLVSURSRVLQJWRXVHWKHULJKWRIZD\WRSURYLGHDFFHVVWR
RQVLWHIDFLOLWLHVDVZHOODVDFFRPPRGDWHIXWXUHH[SDQVLRQRIH[LVWLQJ
IDFLOLWLHV
7KHDSSOLFDWLRQKDVEHHQUHYLHZHGE\&LW\VWDIIDQGXWLOLW\SXUYH\RUV
ZKRKDYHDQLQWHUHVWLQWKLVULJKWRIZD\7KURXJKWKLVUHYLHZ&LW\6WDII
KDVGHWHUPLQHGWKDWWKHULJKWRIZD\LVQRORQJHUQHHGHGWRPHHWWKH
QHHGVRIWKH&LW\DQGWKDWDSXEOLFKHDULQJVKRXOGEHVHWWRGHWHUPLQH
LIVDLGULJKWRIZD\PD\EHYDFDWHG5HVROXWLRQ1RLIDGRSWHG
E\&LW\&RXQFLOVHWVWKHGDWHRIWKHSXEOLFKHDULQJIRU'HFHPEHU
Page 2 of 4
PCD.1 Page 12 of 281
&RPPLWWHHZDVVXSSRUWLYHRI5HVROXWLRQ1R
&$QQXDO&RPSUHKHQVLYH3ODQ$PHQGPHQWV 6Q\GHU
3ULQFLSDO3ODQQHU-HII'L[RQSUHVHQWHGWKHVWDIIUHSRUW7KH3ODQQLQJ
&RPPLVVLRQKHOGDSXEOLFKHDULQJRQWKHILUVWJURXSRIFRPSUHKHQVLYH
SODQDPHQGPHQWVRQ2FWREHU7KHVHDPHQGPHQWVFRQVLVW
RIWKRVHSURSRVHGWRWKHFRPSUHKHQVLYHSODQPDS &30 DQGWKRVH
DIIHFWLQJSODQSROLFLHVDQGWH[W 37 &RPPLWWHHDQGVWDIIUHYLHZHG
WKHIROORZLQJDPHQGPHQWV
3ROLF\7H[W$PHQGPHQWV &3$3737
0DS$PHQGPHQWV&30
7KH3ODQQLQJ&RPPLVVLRQKHOGDSXEOLFKHDULQJRQWKHVHFRQGJURXS
RIFRPSUHKHQVLYHSODQDPHQGPHQWVRQ1RYHPEHU7KHVH
DPHQGPHQWVFRQVLVWRIWKRVHSURSRVHGWRWKH&RPSUHKHQVLYH3ODQ
0DS &30 DQGWKRVHDIIHFWLQJWKHSROLFLHVDQGWH[W 37 DVIROORZV
3ROLF\7H[W$PHQGPHQWV37
0DS$PHQGPHQWV&30 )LOH1R&3$ &30
)LOH1R&3$ DQG&30$GGQHZPDS1R
(FRQRPLF'HYHORSPHQW6WUDWHJ\$UHDV
2Q1RYHPEHUWKH3ODQQLQJ&RPPLVVLRQZLOOKROGD
SXEOLFKHDULQJRQ0DS$PHQGPHQW&30 )LOH1R&3$
0DS$PHQGPHQWWR0DS1R/RFNH3URSHUW\WRFKDQJHWKH
&RPSUHKHQVLYH3ODQGHVLJQDWLRQIURP6LQJOH)DPLO\5HVLGHQWLDO
WR+LJK'HQVLW\5HVLGHQWLDO
&RPPLWWHHDQGVWDIIUHYLHZHGWKHVXPPDU\WDEOHRXWOLQLQJVWDII
V
UHFRPPHQGDWLRQDQG3ODQQLQJ&RPPLVVLRQ
VUHFRPPHQGDWLRQIRU
HDFKDPHQGPHQW7KH3ODQQLQJ&RPPLVVLRQUHFRPPHQGHGDSSURYDO
RIDOOLWHPVFRQVLGHUHGVRIDU
&RPPLWWHHZDVVXSSRUWLYHRIWKHUHFRPPHQGDWLRQVSURSRVHGE\WKH
3ODQQLQJ&RPPLVVLRQDQGVWDII
''LUHFWRU
V5HSRUW 6Q\GHU
7KHUHZDVQRGLUHFWRU
VUHSRUW
0D\RU/HZLVSURYLGHGWKH&RPPLWWHHZLWKDQXSGDWHRQWKHSURSRVHG
.LQJ&RXQW\QHZVRXWKFRXQW\UHF\FOLQJDQGWUDQVIHUVWDWLRQ
(3&'&0DWUL[ 6Q\GHU
Page 3 of 4
PCD.1 Page 13 of 281
&RPPLWWHHDQGVWDIIUHYLHZHGWKHPDWUL[&RPPLWWHHUHFRPPHQGHG
QRFKDQJHVRUDGGLWLRQV
,9$'-28510(17
7KHUHEHLQJQRIXUWKHUEXVLQHVVWRFRPHEHIRUHWKH3ODQQLQJDQG
&RPPXQLW\'HYHORSPHQW&RPPLWWHHWKHPHHWLQJZDVDGMRXUQHGDW
SP
'$7('7+,6BBBBBBBBGD\RIBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBB
1DQF\%DFNXV&KDLU
BBBBBBBBBBBBBBBBBBBBBBBBBBB
7LQD.ULVV3ODQQLQJ6HFUHWDU\
Page 4 of 4
PCD.1 Page 14 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU0LQXWHV
'DWH
1RYHPEHU
'HSDUWPHQW
3XEOLF:RUNV
$WWDFKPHQWV
1RYHPEHU'UDIW0LQXWHV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
3XEOLF:RUNV
&RXQFLOPHPEHU :DJQHU 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 3:
AUBURN * MORE THAN YOU IMAGINEDPW.1 Page 15 of 281
3XEOLF:RUNV&RPPLWWHH
1RYHPEHU 30
$QQH[5RRP
0,187(6
,&$//7225'(5
&KDLUPDQ5LFK:DJQHUFDOOHGWKHPHHWLQJWRRUGHUDW SPLQ
&RQIHUHQFH5RRPORFDWHGRQWKHVHFRQGIORRURI$XEXUQ&LW\+DOO2QH
(DVW0DLQ6WUHHW$XEXUQ:DVKLQJWRQ
$5ROO&DOO
&KDLUPDQ:DJQHU9LFH&KDLU%LOO3HOR]DDQG0HPEHU2VERUQHZHUH
SUHVHQW$OVRSUHVHQWGXULQJWKHPHHWLQJZHUH 0D\RU3HWH/HZLV
3XEOLF:RUNV'LUHFWRU'HQQLV'RZG\&LW\(QJLQHHU$VVLVWDQW'LUHFWRU
'HQQLV6HOOH$VVLVWDQW&LW\(QJLQHHU,QJULG*DXE8WLOLWLHV(QJLQHHU
'DQ5HSS7UDQVSRUWDWLRQ0DQDJHU3DEOR3DUD7UDIILF(QJLQHHU
-DPHV:HEE3URMHFW(QJLQHHU/HDK'XQVGRQ:DWHU8WLOLW\(QJLQHHU
&\QWKLD/DPRWKH)LQDQFH'LUHFWRU6KHOOH\&ROHPDQ,7$FWLQJ
'LUHFWRU5HED6WRZH&LW\$WWRUQH\'DQ+HLG3ODQQLQJ'LUHFWRU.HYLQ
6Q\GHU(QYLURQPHQWDO3URWHFWLRQ0DQDJHU&KULV$QGHUVHQ
(QYLURQPHQWDO3ODQQHU-DPLH.HOO\6HQLRU3ODQQHU6WXDUW:DJQHU
FLWL]HQ6FRW3RQGHOLFNDQG3XEOLF:RUNV'HSDUWPHQW6HFUHWDU\
-HQQLIHU&XVPLU
%$QQRXQFHPHQWV
7KHUHZHUHQRDQQRXQFHPHQWV
&$JHQGD0RGLILFDWLRQV
7KHUHZDVRQHDJHQGDPRGLILFDWLRQ'LVFXVVLRQ,WHP,0XQLFLSDO
8WLOLW\6HUYLFHVRQ0XFNOHVKRRW,QGLDQ7UXVW/DQG
,,&216(17$*(1'$
$$SSURYDORI0LQXWHV
&RXQFLOPHPEHU3HOR]DPRYHGDQG&RXQFLOPHPEHU
2VERUQHVHFRQGHGWRDSSURYHWKHPLQXWHVRIWKH2FWREHU
3XEOLF:RUNV&RPPLWWHH0HHWLQJ
0RWLRQ&DUULHG8QDQLPRXVO\
%5LJKWRI:D\8VH3HUPLW1R 0XQG
&RXQFLOPHPEHU3HOR]DPRYHGDQG&RXQFLOPHPEHUPage 1 of 9
PW.1 Page 16 of 281
2VERUQHVHFRQGHGWRDSSURYH5LJKWRI:D\8VH3HUPLW1RIRU
%16)5DLOZD\&RPSDQ\*HR(QJLQHHUV0RQLWRULQJ:HOOV
7UDQVSRUWDWLRQ0DQDJHU3DUDH[SODLQHGWKDWWKHUHDUHDWRWDORIQLQH
ZHOOVFRYHUHGXQGHUWKHSHUPLWQHZZHOOVDQGH[LVWLQJZHOOVDQG
WKHYLFLQLW\PDSGHPRQVWUDWHVWKHORFDWLRQRIWKHZHOOV
&KDLUPDQ:DJQHUDVNHGLIWKHUHDUHFRQGLWLRQVIRUWKHWLPHWKDWWKH
ERULQJZRUNFDQEHFDUULHGRXW7UDQVSRUWDWLRQ0DQDJHU3DUD
DQVZHUHGWKDWZRUNKRXUVDUHLQFOXGHGLQWKHFRQGLWLRQVDQGWKH
DSSOLFDQWLVUHTXLUHGWRVXEPLWDWUDIILFFRQWUROSODQ$VVLVWDQW
'LUHFWRU&LW\(QJLQHHU6HOOHFODULILHGWKDWWKHDSSOLFDQWPXVWDOVRDSSO\
IRUDVHSDUDWH&RQVWUXFWLRQ3HUPLWLQRUGHUWRFRPSOHWHWKHLQVWDOODWLRQ
RIWKHZHOOVDQGWKHWLPHRIGD\DQGWUDIILFUHTXLUHPHQWVDUH
UHTXLUHPHQWVRIWKDWSHUPLW
7KH&RPPLWWHHDQGVWDIIGLVFXVVHGKRZWKHDSSOLFDQWPD\GHWHUPLQH
ZKHUHWKHZHOOVDUHSODFHG$VVLVWDQW'LUHFWRU&LW\(QJLQHHU6HOOH
VWDWHGWKDWSODFHPHQWLVEDVHGRQJHRWHFKQLFDOUHFRPPHQGDWLRQV
0HPEHU2VERUQHDVNHGLIWKHDSSOLFDQWKDGDQ\ZHOOVWRWKHQRUWKDQG
QRUWKHDVW$VVLVWDQW'LUHFWRU&LW\(QJLQHHU6HOOHDQVZHUHGWKDWKHLV
RQO\DZDUHRIZHOOVWKDWWKHDSSOLFDQWLVSURSRVLQJLQWKH&LW\5LJKWRI
:D\DQGLVQRWVXUHZKDWPD\EHRQWKHDSSOLFDQW¶VSURSHUW\
7UDQVSRUWDWLRQ0DQDJHU3DUDVDLGWKDWWKH&LW\GRHVUHTXLUHWKDW
DSSOLFDQWVUHSRUWWKHLUERULQJDQGWHVWLQJILQGLQJV
9LFH&KDLU3HOR]DDVNHGLIWKHERULQJZLOOLQWHUUXSWDQGEXVLQHVV
DFWLYLWLHV$VVLVWDQW'LUHFWRU&LW\(QJLQHHU6HOOHDQVZHUWKDWLWZLOOQRW
0RWLRQ&DUULHG8QDQLPRXVO\
&3XEOLF:RUNV3URMHFW1R&$ 'XQVGRQ
&RXQFLOPHPEHU3HOR]DPRYHGDQG&RXQFLOPHPEHU
2VERUQHVHFRQGHGWRUHFRPPHQG&LW\&RXQFLOJUDQWSHUPLVVLRQWR
HQWHU,QWR&RQVXOWDQW$JUHHPHQW1R$*&ZLWK5+(QJLQHHULQJ
IRU3URMHFW1R&$:HOO(PHUJHQF\3RZHU,PSURYHPHQWV
3URMHFW
3URMHFW(QJLQHHU'XQVGRQVWDWHGWKDW&HGDU/DQH3DUNLVHDVWRIWKH
SURMHFWVLWHWKHUHLVDKRPHWRWKHQRUWKDQGDUDYLQHWRWKHVRXWKLQ
UHVSRQVHWRDTXHVWLRQDVNHGE\&KDLUPDQ:DJQHU
8WLOLWLHV(QJLQHHU5HSSVWDWHGWKDWWKHSRVVLEOHLQFUHDVHVKRZQ
LQWKHSURMHFWEXGJHWVWDWXVKDVQRWEHHQLQFOXGHGLQWKHSDVWUDWH
VWXG\6WDIIZRXOGDGGUHVVDQ\VKRUWIDOOE\DGMXVWLQJRWKHULWHPVWKH
Page 2 of 9
PW.1 Page 17 of 281
ZDWHUXWLOLW\EXGJHWLIQHFHVVDU\
0RWLRQ&DUULHG8QDQLPRXVO\
'3XEOLF:RUNV3URMHFW1R&$ 'XQVGRQ
&RXQFLOPHPEHU3HOR]DPRYHGDQG&RXQFLOPHPEHU
2VERUQHVHFRQGHGWRUHFRPPHQG&LW\&RXQFLODSSURYH&KDQJH
2UGHU1RIRU3URMHFW1R&$WK:HWODQG0LWLJDWLRQ
0RQLWRULQJ $QQXDO
7KHUHZHUHQRTXHVWLRQVIURPWKH&RPPLWWHH
0RWLRQ&DUULHG8QDQLPRXVO\
,,,',6&866,21,7(06
$)LQDQFLDO2SWLRQV$YDLODEOHWRWKH&LW\RI$XEXUQ &ROHPDQ
0D\RU/HZLVH[SODLQHGWKDWKHDVNHG)LQDQFH'LUHFWRU&ROHPDQWR
WDNHWKLVGLVFXVVLRQLWHPWRDOORIWKH&RPPLWWHHVEHFDXVHDOWKRXJK
WKH&LW\KDVDEDODQFHGEXGJHWWKHEXGJHWGRHVQRWKLQJWRIXQGWKH
SUHVHUYDWLRQRIWKH&LW\¶VDUWHULDOVWUHHWV0D\RU/HZLVVSRNHDERXWWKH
GHWHULRUDWLRQRIWKHDUWHULDOFRUULGRUVDQGVWDWHGWKDW)LQDQFH'LUHFWRU
&ROHPDQZLOOUHYLHZWKHRSWLRQVDYDLODEOHWRWKH&RXQFLO0D\RU/HZLV
SRLQWHGRXWWKDWSUHVHUYDWLRQRIWKHDUWHULDOVZRXOGFRVWOHVVWKDQ
UHEXLOGLQJWKHURDGZD\V
)LQDQFH'LUHFWRU&ROHPDQSUHVHQWHGWKHVXPPDU\RIWKHUHPDLQLQJ
VRXUFHVRI&LW\UHYHQXHVWRWKH&RPPLWWHH
)LQDQFH'LUHFWRU&ROHPDQVWDWHGWKDWWKHEXONRIWKH&RXQFLOPDQLF
GHEWLVWKH&LW\¶VVKDUHRIWKH6&25(GHEWWKHGHEWLVVXHGIRUWKH
&LW\+DOO$QQH[EXLOGLQJDQGGHEWRQWKHJROIFRXUVHLQUHVSRQVHWRD
TXHVWLRQDVNHGE\&KDLUPDQ:DJQHU9LFH&KDLU3HOR]DDVNHGIRUD
ZULWHXSVKRZLQJWKHLVVXHGGHEWH[SLUDWLRQGDWHRIHDFKUHPDLQLQJ
EDODQFHDQG\HDUO\GHEWVHUYLFH
)LQDQFH'LUHFWRU&ROHPDQGLVFXVVHGWKH3XEOLF8WLOLW\7D[DQG&DEOH
798WLOLW\7D[&KDLUPDQ:DJQHUDVNHGIRUDVWXG\RQWKH3XEOLF8WLOLW\
7D[HVDQG&DEOH798WLOLW\7D[HVRIQHLJKERULQJMXULVGLFWLRQV
)LQDQFH'LUHFWRU&ROHPDQH[SODLQHGWKDWWKH&LW\LVDXWKRUL]HGWROHY\
D% 27D[RIXSWRRQJURVVUHFHLSWV&KDLUPDQ:DJQHUDVNHG
IRUDGGLWLRQDOLQIRUPDWLRQRQZKDWGLIIHUHQWW\SHVRIEXVLQHVVHVDUH
WD[HGLQQHLJKERULQJMXULVGLFWLRQV)LQDQFH'LUHFWRU&ROHPDQDQVZHUHG
TXHVWLRQVUHJDUGLQJWD[DWLRQRIJURVVLQFRPHZLWKLQEXVLQHVV
FDWHJRULHVLQUHVSRQVHWRDTXHVWLRQDVNHGE\&KDLUPDQ
:DJQHU0D\RU/HZLVH[SODLQHGWKDWWKHUHFDQQRWEHGLIIHUHQWWD[Page 3 of 9
PW.1 Page 18 of 281
UDWHVZLWKLQDZKROHVDOHFODVVEXWWKHUHFDQEHGLIIHUHQWUDWHVEHWZHHQ
WKHGLIIHUHQWFODVVHV
7KH&RPPLWWHHDQGVWDIIGLVFXVVHGWKHPDQQHUZKLFKGLIIHUHQWUDWHV
FDQDQGFDQQRWEHFKDUJHGEHWZHHQZKROHVDOHFODVVHV
)LQDQFH'LUHFWRU&ROHPDQVSRNHDERXW5HJXODWRU\/LFHQVH
)HHV0HPEHU2VERUQHQRWHGWKDWWKHZKROHVDOHFDWHJRULHVDUH
OLPLWHGWRVSHFLILFW\SHVRIEXVLQHVV
7KH&RPPLWWHHDQGVWDIIGLVFXVVHGWKHGLIIHUHQFHVEHWZHHQWKH% 2
7D[DQGWKH5HJXODWRU\/LFHQVH)HH0D\RU/HZLVDQVZHUHGWKDWWKH
UHYHQXHJHQHUDWHGFDQEHXVHGVROHO\IRUWUDQVSRUWDWLRQDQGURDG
LVVXHVLQUHVSRQVHWRDTXHVWLRQDVNHGE\0HPEHU2VERUQH0D\RU
/HZLVVWDWHGWKDWWKHUHFDQDOVREHDVXQVHWGDWHDSSOLHG
7KH&RPPLWWHHDQGVWDIIGLVFXVVHGWKHDGPLQLVWUDWLYHFRVWV
DVVRFLDWHGZLWKDGPLQLVWHULQJHLWKHUWKH% 27D[RUWKH5HJXODWRU\
/LFHQVH)HH
)LQDQFH'LUHFWRU&ROHPDQSURYLGHGWKH&RPPLWWHHZLWKH[DPSOHVRI
KRZWKHWD[HVDQGRUIHHVDUHDGPLQLVWHUHGDQGFROOHFWHGLQUHVSRQVH
WRDUHTXHVWPDGHE\9LFH&KDLU3HOR]D9LFH&KDLU3HOR]DDVNHGIRU
)LQDQFH'LUHFWRU&ROHPDQWRSURYLGHWKH&RXQFLOZLWKDOLVWRISURVDQG
FRQVIRUWKH% 27D[DQGWKH5HJXODWRU\/LFHQVH)HH
0D\RU/HZLVDVNHGVWDIIWRUHYLHZWKHIRUPXODXVHGWRGHWHUPLQHWKH
6WUHHW0DLQWHQDQFH8WLOLW\FDQEHXVHGWRGHWHUPLQHWKH5HJXODWRU\
/LFHQVH)HH
0HPEHU2VERUQHLQTXLUHGDERXWWKHFRVWWRWKH&LW\LQJHQHUDWLQJQHZ
WD[HV0D\RU/HZLVUHVSRQGHGWKDWFRVWQHHGVWREHFRQVLGHUHG
7KH&RPPLWWHHDQGVWDIIGLVFXVVHGWKH0HWURSROLWDQ3DUNV'LVWULFW
IRUPDWLRQ0D\RU/HZLVSRLQWHGRXWWKDWWKH03'FDQEHOHYLHGZLWK
YRWHUDSSURYDODQGPDGHQRWHRIDW\SRLQWKHGLVFXVVLRQPDWHULDO
&LW\$WWRUQH\+HLGDQVZHUHGTXHVWLRQVDVNHGE\0D\RU/HZLV
UHJDUGLQJWKHDOORFDWLRQRIUHYHQXHJHQHUDWHG
0D\RU/HZLVVWDWHGWKDWWKHLQIRUPDWLRQUHTXHVWHGZLOOEHSURYLGHGWR
WKH&RPPLWWHHDQGWKH3XEOLF:RUNVVWDIIZLOOSUHVHQWWKHQHHGVRIWKH
DUWHULDOVWUHHWVWRDOORIWKH&RPPLWWHHVDVGLVFXVVLRQRIWKHILQDQFLDO
RSWLRQVFRQWLQXHV
%2UGLQDQFH1R &ROHPDQ
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
Page 4 of 9
PW.1 Page 19 of 281
$XWKRUL]LQJWKH/HY\RI5HJXODU3URSHUW\7D[HVE\WKH&LW\RI$XEXUQ
IRU&ROOHFWLRQLQ
7KH&RPPLWWHHDQG)LQDQFH'LUHFWRU&ROHPDQGLVFXVVHGWKH
PD[LPXPGROODUUDWHSHU
&KDLUPDQ:DJQHUVWDWHGWKDWKHVXSSRUWHGWKHVWDII
UHFRPPHQGDWLRQ7KH&RPPLWWHHFRQFXUUHG
&5HVROXWLRQ1R &ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
$XWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWR([HFXWHD6HWWOHPHQW
$JUHHPHQW%HWZHHQWKH&LW\RI$XEXUQDQG:DVWH0DQDJHPHQWRI
:DVKLQJWRQ,QF5HODWHGWR0LVVHG3LFNXSV
0HPEHU2VERUQHDVNHGLILWZDVRQHRUWZRZHHNVWKDWWKH&LW\ZDV
ZLWKRXWVHUYLFH)LQDQFH'LUHFWRU&ROHPDQDQVZHUHGWKDWVHUYLFHZDV
GLVFRQWLQXHGIRURQHZHHN
)LQDQFH'LUHFWRU&ROHPDQSRLQWHGRXWWKDWWKHFUHGLWZLOOEHLQFOXGHGLQ
WKH'HFHPEHUELOOLQJ
7KH&RPPLWWHHVXSSRUWHGWKHDGRSWLRQRI5HVROXWLRQ1R
'5HVROXWLRQ1R $QGHUVHQ
$5HVROXWLRQRIWKH&LW\RI$XEXUQ:DVKLQJWRQ$XWKRUL]LQJWKH0D\RU
DQG&LW\&OHUNWR([HFXWHDQ$JUHHPHQW%HWZHHQWKH&LW\RI$XEXUQ
DQG.LQJ&RXQW\IRU'HVLJQ3URMHFW0DQDJHPHQWDQG&RQVWUXFWLRQ
0DQDJHPHQW6HUYLFHVIRU3URMHFW1R&3)HQVWHU/HYHH
6HWEDFN3KDVH% 3OHDVH1RWHWKDWD6HSDUDWHDQG)XWXUH
5HVROXWLRQ$FWLRQZLOOEH3UHVHQWHGWR&LW\&RXQFLOIRU$XWKRUL]DWLRQRI
3URMHFW&RQVWUXFWLRQ
(QYLURQPHQWDO3URWHFWLRQ0DQDJHU$QGHUVHQSURYLGHGEDFNJURXQG
LQIRUPDWLRQUHJDUGLQJWKH)HQVWHU/HYHH6HWEDFN3KDVH%
SURMHFW$QGHUVHQVWDWHGWKDWLQWKH&RPPLWWHHDSSURYHG
IRUWKHSURMHFWZKLFKZLOOVHWEDFNDSSUR[LPDWHO\IHHWRI
OHYHHDW)HQVWHU1DWXUH3DUNIRUWKHWZLQSXUSRVHVRIUHVWRULQJULYHU
IXQFWLRQDQGLPSURYLQJWKHQDWXUDOIORRGSODLQDQGKDELWDW
(QYLURQPHQWDO3URWHFWLRQ0DQDJHU$QGHUVHQH[SODLQHGWKDWLQODWH
WKHHVWLPDWHGFRVWRIWKHSURMHFWLQFUHDVHGDQGVWDIIVXVSHQGHG
IXUWKHUZRUNRQGHVLJQDQGFRQVWUXFWLRQRIWKHSURMHFWXQWLODGGLWLRQDO
IXQGLQJFRXOGEHORFDWHGWRFRYHUWKHKLJKHUFRVWV
$QGHUVHQUHSRUWHGWKDWRYHUWKHSDVWVHYHUDOPRQWKVZLWKWKHHIIRUWV
DQGVXSSRUWRIWKH:5,$ (FRV\VWHP)RUXPWZRDGGLWLRQDOVRXUFHV
RIIXQGLQJKDYHEHHQORFDWHG2QHVRXUFHLVDJUDQWIURPWKH.LQJ
&RXQW\)ORRG&RQWURO'LVWULFWDQGWKHVHFRQGLVDJUDQWIURPWKH
Page 5 of 9
PW.1 Page 20 of 281
6DOPRQ5HFRYHU\)XQGLQJ%RDUG$QGHUVHQVWDWHGWKHGHFLVLRQRQWKH
JUDQWIURPWKH6DOPRQ5HFRYHU\)XQGLQJ%RDUG 65)% LVVWLOO
SHQGLQJEXWLVVFKHGXOHGIRUWKHILUVWZHHNLQ'HFHPEHU
&KDLUPDQ:DJQHUDVNHGZK\WKH&LW\LVQRWZDLWLQJWRHQWHULQWRDQ
LQWHUORFDODJUHHPHQWXQWLOWKHGHFLVLRQRQWKHJUDQWIXQGVLV
ILQDO(QYLURQPHQWDO3URWHFWLRQ0DQJHU$QGHUVHQDQVZHUHGWKH&LW\
KDVEHHQHQFRXUDJHGWRSURFHHGZLWKWKHSURMHFWGHVLJQE\
UHSUHVHQWDWLYHVRIWKH65)%&KDLUPDQ:DJQHUFRQILUPHGZLWK
$QGHUVHQWKDWLIWKHIXQGLQJIURPWKH65)%LVQRWVHFXUHGWKH&LW\ZLOO
QRWEHREOLJDWHGWRFRQWLQXHZLWKWKHFRQVWUXFWLRQRIWKHSURMHFW
(QYLURQPHQWDO3URWHFWLRQ0DQDJHU$QGHUVHQQRWHGWKDWWKH
DJUHHPHQWLVIRUGHVLJQRQO\DQGWKHFRQVWUXFWLRQFRQWUDFWZLOOEH
VHSDUDWH
7KH&RPPLWWHH&LW\$WWRUQH\+HLGDQGVWDIIUHYLHZHGWKHODQJXDJHRI
WKHDJUHHPHQW
(QYLURQPHQWDO3URWHFWLRQ0DQDJHU$QGHUVHQVWDWHGWKDWWKHSURMHFW
GRHVQRWLQFOXGHWKHFRQVWUXFWLRQRILPSURYHGWUDLOVLQWKHDUHD
EHWZHHQWKHOHYHHDQGWKHULYHUEXWWKDWDFFHVVWRWKLVDUHDZLOOQRWEH
UHVWULFWHGSRVWFRQVWUXFWLRQLQUHVSRQVHWRDTXHVWLRQDVNHGE\
&KDLUPDQ:DJQHU
$QGHUVHQVWDWHGWKDWWKHDUHDRIOHYHHVHWEDFNLPSURYHPHQWVZLOOEH
DFFHVVHGWKURXJKWKH)HQVWHU1DWXUH3DUNLQUHVSRQVHWRDTXHVWLRQ
DVNHGE\9LFH&KDLU3HOR]D
0HPEHU2VERUQHDVNHGZKRLVUHVSRQVLEOHIRUPDLQWDLQLQJWKH
OHYHH$QGHUVHQDQVZHUHGWKHOHYHHLVDIDFLOLW\RIWKH.LQJ&RXQW\
)ORRG&RQWURO'LVWULFW0D\RU/HZLVFRQILUPHGWKDWWKHOHYHHLVD
UHVSRQVLELOLW\RI.LQJ&RXQW\
7KH&RPPLWWHHVXSSRUWHGLQWURGXFWLRQDQGDGRSWLRQRI2UGLQDQFH1R
(&RGH8SGDWH3URMHFW3KDVH*URXS 6:DJQHU
'LVFXVV3URSRVHG$PHQGPHQWVWR7LWOH=RQLQJRIWKH$XEXUQ&LW\
&RGH5HODWHGWR1RQUHVLGHQWLDO=RQHVDQG3ODQQLQJ&RPPLVVLRQ
V
5HFRPPHQGDWLRQ =2$
6HQLRU3ODQQHU:DJQHUVWDWHGWKHSODQRIWKHILUVWSKDVHRIWKHFRGH
XSGDWHSURMHFWZDVWRUHGXFHWKHQXPEHURIODQGXVHVUHTXLULQJ
&RQGLWLRQDO8VH3HUPLWVLQUHVSRQVHWRDTXHVWLRQDVNHGE\
&KDLUPDQ:DJQHU3ODQQLQJ'LUHFWRU6Q\GHUH[SODLQHGWKDWVWDIIKDV
PRYHGDORWRIXVHVIURPQHHGLQJD&RQGLWLRQDO8VH3HUPLWWRDQ
$GPLQLVWUDWLYH8VH3HUPLWEXWWKHUHDUHVWLOOVRPH&RQGLWLRQDO8VH
Page 6 of 9
PW.1 Page 21 of 281
3HUPLWVEHFDXVHRIWKHSRWHQWLDOQDWXUHRIWKHLULPSDFWVDQGWKHUHIRUH
DUHZDUUDQWHG
6HQLRU3ODQQHU:DJQHUFRQILUPHGWKDWWKH0DQG0]RQHVVWLOOH[LVW
LQUHVSRQVHWRDTXHVWLRQDVNHGE\&KDLUPDQ:DJQHU
3ODQQLQJ'LUHFWRU6Q\GHUDQVZHUHGTXHVWLRQVDVNHGE\0HPEHU
2VERUQHUHJDUGLQJ]RQLQJIRUSDLQWVWRUHV6Q\GHUVWDWHGVWDIIZRXOG
FODVVLI\VXFKDVWRUHDVDUHWDLORXWOHW
6HQLRU3ODQQHU:DJQHUQRWHGFRGHUHJDUGLQJDXWRPRELOHVHUYLFH
VWDWLRQVLVQRZFRYHUHGXQGHUIXHOLQJVWDWLRQVLQUHVSRQVHWRDQ
LQTXLU\PDGHE\&KDLUPDQ:DJQHU3ODQQLQJ'LUHFWRU6Q\GHU
H[SODLQHGWKDWWKHGHILQLWLRQZDVEURDGHQHGWRUHFRJQL]HWKHSRVVLELOLW\
RIDOWHUQDWLYHIXHOLQJVRXUFHV
7KHUHZHUHQRDGGLWLRQDOTXHVWLRQVIURPWKH&RPPLWWHH
)5HVROXWLRQ1R %DLOH\'RZG\
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
'HFODULQJ&HUWDLQ,WHPVRI3URSHUW\DV6XUSOXVDQG$XWKRUL]LQJ7KHLU
'LVSRVDO
'LUHFWRU'RZG\DQVZHUHGTXHVWLRQVUHJDUGLQJWKHVXUSOXVRIWKH
FXELFDOFDELQHWU\DVNHGE\9LFH&KDLU3HOR]D
7KHUHZHUHQRDGGLWLRQDOTXHVWLRQVIURPWKH&RPPLWWHH
*&DSLWDO3URMHFW6WDWXV5HSRUW *DXE
,WHP±&3±/RFDO6WUHHW3DYHPHQW5HFRQVWUXFWLRQ
9LFH&KDLU3HOR]DVWDWHGWKDWDFLWL]HQVSRNHWRKLPDQGZDVYHU\
DSSUHFLDWLYHWKDW-6WUHHW6(ZDVLQFOXGHGLQWKHSURMHFW
,WHP$±&3±$XEXUQ9DOOH\+XPDQH6RFLHW\6LWH &KDLUPDQ
:DJQHUDVNHGLIWKHQHZURRIIRUWKHEXLOGLQJLVLQFOXGHGLQWKH
SURMHFW$VVLVWDQW&LW\(QJLQHHU*DXEVWDWHGWKDWWKLVFRQWUDFWRQO\
LQFOXGHVVLWHLPSURYHPHQWVDQGQRWWKHWHQDQWLPSURYHPHQWVRUWKH
URRIUHSODFHPHQW$VVLVWDQW&LW\(QJLQHHU*DXEVWDWHGWKDWWKHURRI
UHSODFHPHQWZLOOEHJRLQJWKURXJKWKH0XQLFLSDO6HUYLFHV&RPPLWWHH
&KDLUPDQ:DJQHUDVNHGKRZFXWWKURXJKWUDIILFZLOOEHKDQGOHGDWWKH
VLWH$VVLVWDQW&LW\(QJLQHHU*DXEVWDWHGVWDIIKDVEHHQUHYLHZLQJWKH
VLWHEXWDUHZDLWLQJXQWLOWKHIDFLOLW\LVRSHQWRGHWHUPLQHLIWKHUHZLOOEH
DSUREOHP
+$FWLRQ7UDFNLQJ0DWUL[ 'RZG\
,WHP$±6WUHHW/LJKWLQJ (YDOXDWHQG3ODFH6(
Page 7 of 9
PW.1 Page 22 of 281
/LJKWLQJ 7UDQVSRUWDWLRQ0DQDJHU3DUDVWDWHGWKDWKHUHFHLYHG
FRQILUPDWLRQIURP36(RQLQVWDOODWLRQRIWZRRIWKHVWUHHWOLJKWV7KH
WKLUGLQVWDOODWLRQLVEHLQJGHOD\HGGXHWRDFRPPXQLFDWLRQVOLQH
DGMXVWPHQW7UDQVSRUWDWLRQ0DQDJHU3DUDVDLGKHDQWLFLSDWHG
UHSRUWLQJEDFNWRWKH&RPPLWWHHRQ'HFHPEHUUGUHJDUGLQJWKH
LQVWDOODWLRQRIWKHILUVWWZROLJKWV
7UDQVSRUWDWLRQ0DQDJHU3DUDFRQILUPHGWKHOLJKWRQWKHHQGRQWKH
VWUHHWZLOOEHRQHRIWKHILUVWOLJKWVWREHLQVWDOOHGLQUHVSRQVHWRD
TXHVWLRQDVNHGE\0HPEHU2VERUQH
,0XQLFLSDO8WLOLW\6HUYLFHVRQ0XFNOHVKRRW,QGLDQ7UXVW/DQG
&LW\$WWRUQH\+HLGGLVWULEXWHGDKDQGRXWUHJDUGLQJWKH0XFNOHVKRRW
,QGLDQ7ULEH 0,7 8WLOLW\'HSRVLW
)LQDQFH'LUHFWRU&ROHPDQDQG0D\RU/HZLVDGGUHVVHGFRPPHQWV
PDGHE\&KDLUPDQ:DJQHUUHJDUGLQJWKHLQFOXVLRQRIVROLGZDVWHDQG
VWRUPXWLOLWLHVLQWKHXWLOLW\GHSRVLW
9LFH&KDLU3HOR]DYRLFHGFRQFHUQWKDWKHKDGQRWKDGDQRSSRUWXQLW\
WRUHYLHZWKHLQIRUPDWLRQLQFOXGHGZLWKWKHDJHQGDPRGLILFDWLRQ
&LW\$WWRUQH\+HLGH[SODLQHGWKDWFRPELQLQJWKHXWLOLW\VHUYLFHVLQ
ELOOLQJDQGGHSRVLWVDOORZVVWDIIDPRUHXQLIRUPFROOHFWLRQDQGLIWKH
XWLOLWLHVZHUHVHSDUDWHGFXVWRPHUVFRXOGIRUJRSD\LQJWKHVROLGZDVWH
DQGVWRUPELOOVDQGRQO\SD\WKHLUZDWHUELOOV
)LQDQFH'LUHFWRU&ROHPDQGLVFXVVHGKRZSDUWLDOSD\PHQWVDUHDSSOLHG
WRDFFRXQWV&KDLUPDQ:DJQHUVWDWHGWKDWKLVFRQFHUQVDUHRQO\
UHODWHGWRGHWHUPLQLQJGHSRVLWV
7KH&RPPLWWHHDQGVWDIIGLVFXVVHGWKHSURVDQGFRQVRIFRPELQLQJ
XWLOLWLHVZKHQGHWHUPLQLQJXWLOLW\GHSRVLWIHHV
0D\RU/HZLVUHFRPPHQGHGFRQGXFWLQJDFODVVVWXG\DQGWKHQ
PRGLI\LQJWKHPHWKRGE\ZKLFKWKHGHSRVLWVDUHGHWHUPLQHG
&KDLUPDQ:DJQHUVSRNHDERXWWKHDOORZDQFHRIDSD\PHQWSODQIRU
WKHGHSRVLWVLQFDVHVRIKDUGVKLS7KH&RPPLWWHHVWDWHGWKH\ZRXOG
VXSSRUWVKXWRIIIRUIDLOXUHWRSD\WKHGHSRVLWIROORZLQJDTXHVWLRQ
DVNHGE\0D\RU/HZLV
9LFH&KDLU3HOR]DUHTXHVWHG³8WLOLW\'HSRVLW3ROLF\DQG$GPLQLVWUDWLYH
,PSOLFDWLRQV´EHLQFOXGHGRQWKH&RPPLWWHH¶VPDWUL[
)LQDQFH'LUHFWRU&ROHPDQYHULILHGWKDWRQOLHQDEOHSURSHUWLHVWKHUHLV
QRGHSRVLWIHHLQUHVSRQVHWRDTXHVWLRQDVNHGE\0HPEHU2VERUQH
Page 8 of 9
PW.1 Page 23 of 281
0D\RU/HZLVVSRNHDERXWZKDWWKH&LW\ZDQWVWRDFFRPSOLVKZKLOH
ZRUNLQJZLWKWKH0,70D\RU/HZLVVWDWHGWKHLQWHQWLVWRXOWLPDWHO\HQG
XWLOLW\GHSRVLWVIROORZLQJWKHDSSURSULDWHUDWHVWXGLHV
&KDLUPDQ:DJQHUDVNHG,WHP,EHGLVFXVVHGIXUWKHUDWWKHQH[W
&RPPLWWHHPHHWLQJ
&LW\$WWRUQH\+HLGDQVZHUHGTXHVWLRQVDVNHGE\0HPEHU2VERUQH
UHJDUGLQJWKHFODVVLILFDWLRQRIUDWHSD\HUV
,9$'-28510(17
7KHUHEHLQJQRIXUWKHUEXVLQHVVWRFRPHEHIRUHWKH3XEOLF:RUNV
&RPPLWWHHWKHPHHWLQJZDVDGMRXUQHGDW SP
$SSURYHGWKLV WKGD\RI1RYHPEHU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
5LFK:DJQHU&KDLU-HQQLIHU&XVPLU'HSDUWPHQW6HFUHWDU\
Page 9 of 9
PW.1 Page 24 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU0LQXWHV
'DWH
1RYHPEHU
'HSDUWPHQW
)LQDQFH
$WWDFKPHQWV
0LQXWHV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH
&RXQFLOPHPEHU 3DUWULGJH 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU )1
AUBURN * MORE THAN YOU IMAGINEDFN.1 Page 25 of 281
)LQDQFH&RPPLWWHH
1RYHPEHU 30
$QQH[&RQIHUHQFH5RRP
0,187(6
,&$//7225'(5
&KDLU-RKQ3DUWULGJHFDOOHGWKHPHHWLQJWRRUGHUDW SPLQ$QQH[&RQIHUHQFH
5RRPORFDWHGRQWKHVHFRQGIORRURIWKH&LW\+DOO$QQH[ORFDWHGDW2QH(DVW
0DLQ6WUHHWLQ$XEXUQ
$5ROO&DOO
&KDLU-RKQ3DUWULGJH9LFH&KDLU-RKQ+ROPDQDQG0HPEHU/DUJR:DOHV
ZHUHSUHVHQW
&LW\RIILFLDOVDQGVWDIIPHPEHUVSUHVHQWLQFOXGHG 0D\RU3HWHU%/HZLV&LW\
$WWRUQH\'DQLHO%+HLG3ODQQLQJDQG'HYHORSPHQW'LUHFWRU.HYLQ6Q\GHU,7
$FWLQJ'LUHFWRU5HED6WRZH3XEOLF:RUNV'LUHFWRU'HQQLV'RZG\)LQDQFH
'LUHFWRU6KHOOH\&ROHPDQ$GYLVRUWRWKH0D\RU0LFKDHO+XUVK6ROLG:DVWH
5HF\FOLQJ&RRUGLQDWRU-RDQ1HOVRQ(QYLURQPHQWDO3URWHFWLRQ0DQDJHU&KULV
$QGHUVHQDQG&LW\&OHUN'DQLHOOH'DVNDP*XHVWVSUHVHQWLQFOXGHG6FRW
3RQGHOLFNDQG&KULV.HDO\
%$QQRXQFHPHQWV
7KHUHZDVQRDQQRXQFHPHQW
&$JHQGD0RGLILFDWLRQV
$QDGGLWLRQDOGLVFXVVLRQLWHPUHODWLQJWRPXQLFLSDOXWLOLW\VHUYLFHVRQ
0XFNOHVKRRW,QGLDQWUXVWODQGZDVDGGHGWRWKHDJHQGD&KDLU3DUWULGJHDOVR
DQQRXQFHGWKDW0U&KULV.HDO\RIWKH,URQ+RUVH&DVLQRZLOODGGUHVVWKH
&RPPLWWHHSULRUWRGLVFXVVLRQLWHPV
,,&216(17$*(1'$
$2FWREHU5HJXODU0HHWLQJ0LQXWHV
9LFH&KDLU+ROPDQPRYHGDQG0HPEHU:DOHVVHFRQGHGWRDSSURYHWKH
2FWREHUPLQXWHV
027,21&$55,('81$1,0286/<
%&ODLPV9RXFKHUV
&ODLPVFKHFNQXPEHUVWKURXJK LQWKHDPRXQW
DQGGDWHG1RYHPEHU
&RPPLWWHHPHPEHUVUHYLHZHGWKHFODLPVDQGSD\UROOYRXFKHUVDQGEULHIO\
GLVFXVVHGFODLPVYRXFKHUVDQG
,QUHVSRQVHWRDTXHVWLRQIURP&KDLU3DUWULGJHUHJDUGLQJFODLPVYRXFKHUV
Page 1 of 6
FN.1 Page 26 of 281
WR7HFKQLFDO6\VWHPVIRUZRUNUHODWHGWRWKH6&$'$6\VWHP 3URMHFW
1R&$ 3XEOLF:RUNV'LUHFWRU'RZG\H[SODLQHGWKDWWKHSURMHFWLVLQLWV
ILUVWSKDVH7KLVLVWKHILUVW\HDURIWKHSURMHFWDQGWKHSURMHFWLVRQ
VFKHGXOH
0HPEHU:DOHVPRYHGDQG9LFH&KDLU+ROPDQVHFRQGHGWRDSSURYHFODLPV
DQGSD\UROOYRXFKHUV
027,21&$55,('81$1,0286/<
&3D\UROO9RXFKHUV &ROHPDQ
3D\UROOFKHFNQXPEHUVWKURXJKLQWKHDPRXQWRI
DQGHOHFWURQLFGHSRVLWWUDQVPLVVLRQVLQWKHDPRXQWRIIRUD
JUDQGWRWDORIIRUWKHSHULRGFRYHULQJ2FWREHU
6HHFODLPVYRXFKHUVDERYHIRUDSSURYDORISD\UROOYRXFKHUV
,,,5(62/87,216
$5HVROXWLRQ1R 6Q\GHU
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHD&RQVHUYDWLRQ*UDQW
DJUHHPHQWEHWZHHQWKH&LW\RI$XEXUQDQG3XJHW6RXQG(QHUJ\
3ODQQLQJDQG'HYHORSPHQW'LUHFWRU6Q\GHUH[SODLQHGWKDW5HVROXWLRQ1R
DXWKRUL]HVWKHDFFHSWDQFHRID&RQVHUYDWLRQ*UDQWIURP3XJHW6RXQG
(QHUJ\LQWKHDPRXQWRI7KH&LW\TXDOLILHGIRUWKHJUDQWDVDUHVXOW
RIWKH&LW\
VKHDWLQJYHQWLODWLRQDQGDLUFRROLQJXSJUDGHSURMHFWDWWKH$XEXUQ
-XVWLFH&HQWHU
9LFH&KDLU+ROPDQPRYHGDQG0HPEHU:DOHVVHFRQGHGWRDSSURYHDQG
IRUZDUG5HVROXWLRQ1RWRWKHIXOO&RXQFLO
027,21&$55,('81$1,0286/<
%5HVROXWLRQ1R 'RZG\
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQGHFODULQJ
FHUWDLQLWHPVRISURSHUW\DVVXUSOXVDQGDXWKRUL]LQJWKHLUGLVSRVDO
3XEOLF:RUNV'LUHFWRU'RZG\SUHVHQWHG5HVROXWLRQ1RZKLFKUHTXHVWV
WKHVXUSOXVRIVHYHUDOLWHPVIURPHTXLSPHQWUHQWDOZDWHULQQRYDWLRQDQG
WHFKQRORJ\DQGIDFLOLWLHV
0HPEHU:DOHVPRYHGDQG9LFH&KDLU+ROPDQVHFRQGHGWRDSSURYHDQG
IRUZDUG5HVROXWLRQ1RWRWKHIXOO&RXQFLO
027,21&$55,('81$1,0286/<
&5HVROXWLRQ1R &ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\2I$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHDVHWWOHPHQWDJUHHPHQW
EHWZHHQWKH&LW\RI$XEXUQDQG:DVWH0DQDJHPHQWRI:DVKLQJWRQ,QF
UHODWHGWRPLVVHGSLFNXSV
)LQDQFH'LUHFWRU&ROHPDQVWDWHGWKDW5HVROXWLRQ1RSURYLGHVIRUD
Page 2 of 6
FN.1 Page 27 of 281
6HWWOHPHQW$JUHHPHQWZLWK:DVWH0DQDJHPHQWIRUPLVVHGVROLGZDVWH
FROOHFWLRQVIURP-XO\WR$XJXVWGXHWRDODERUGLVUXSWLRQ
7KHWRWDOVHWWOHPHQWDPRXQWLV&UHGLWVZLOOEHJLYHQWR
UHVLGHQWLDOFXVWRPHUVLQWKHDPRXQWRIDQGFRPPHUFLDOFXVWRPHUVLQ
WKHDPRXQWRI
9LFH&KDLU+ROPDQPRYHGDQG0HPEHU:DOHVVHFRQGHGWRDSSURYHDQG
IRUZDUG5HVROXWLRQ1RWRWKHIXOO&RXQFLO
027,21&$55,('81$1,0286/<
,9',6&866,21,7(06
$,URQ+RUVH&DVLQR*DPEOLQJ7D[HV
0U&KULV.HDO\RI,URQ+RUVH&DVLQRDGGUHVVHGWKH&RPPLWWHHUHJDUGLQJ
JDPEOLQJWD[HVRQFDUGURRPV7KH&RPPLWWHHSUHYLRXVO\GLVFXVVHGD
UHTXHVWIURP0U.HDO\WRUHLQVWDWHWKHUHGXFWLRQLQJDPEOLQJWD[HVRQVRFLDO
FDUGJDPHV7KHUHGXFWLRQLQWKHJDPEOLQJWD[UDWHZDVUHGXFHGSXUVXDQWWR
2UGLQDQFH1RIURPWRIRUDWZR\HDUSHULRGZKLFKH[SLUHGLQ
-XQH7KHWD[UDWHKDVVLQFHUHYHUWHGWRWKHUDWH
0U.HDO\VWDWHGWKDWXQOHVVWKHJDPEOLQJWD[UDWHLVUHGXFHGVRRQKHLQWHQGV
WRFORVHKLVEXVLQHVV:LWKRXWDUHGXFWLRQLQWKHJDPEOLQJWD[UDWHRQFDUG
JDPHVKLVEXVLQHVVLVQRWYLDEOH
0U.HDO\RIIHUHGDQRWKHUSURPLVVRU\QRWHIRUWKHDPRXQWRIWKHGLIIHUHQFHLQ
WKHWD[UDWHLQSODFHVLQFH-XQHDQGWKHWD[UDWHSURSRVHGE\
0U.HDO\0U.HDO\H[SODLQHGWKDWKHGLGQRWEULQJKLVUHTXHVWWR&RXQFLO
HDUOLHUGXHWRDGHOD\HGDXGLWRIKLVEXVLQHVV
8SRQIXUWKHUGLVFXVVLRQLWZDVFRQVHQVXVRIWKH&RPPLWWHHPHPEHUVWR
GLUHFWVWDIIWRSUHSDUHDQRUGLQDQFHVHWWLQJWKHJDPEOLQJWD[UDWHRQVRFLDO
FDUGJDPHVDWHIIHFWLYHXSRQVLJQLQJDQGUHFHLSWRIWKHSURPLVVRU\QRWH
7KHUHZRXOGEHQRVXQVHWFODXVHIRUWKHUHGXFHGWD[UDWH7KHRUGLQDQFHZLOO
EHVFKHGXOHGIRUDFWLRQE\WKH)LQDQFH&RPPLWWHHDWWKHQH[WPHHWLQJ
7KH&RPPLWWHHZLOOXQGHUWDNHDORQJHUWHUPVWXG\ZLWKLQWKHQH[W\HDUWR
UHYLHZWKHJDPEOLQJWD[UDWHDQGWKHLPSDFWRIWKHJDPEOLQJWD[UDWH
%2UGLQDQFH1R &ROHPDQ
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKHOHY\RIUHJXODUSURSHUW\WD[HVE\WKH&LW\RI$XEXUQIRU
FROOHFWLRQLQ
)LQDQFH'LUHFWRU&ROHPDQSUHVHQWHG2UGLQDQFH1RZKLFKHVWDEOLVKHV
WKHSURSHUW\WD[OHY\IRUFDOHQGDU\HDU7KHOHY\LQFOXGHVD
LQFUHDVHDQGSURSHUW\WD[HVRQQHZFRQVWUXFWLRQ'LUHFWRU&ROHPDQQRWHG
WKDWWKHLQIRUPDWLRQDYDLODEOHIURP.LQJ&RXQW\LVVWLOOSUHOLPLQDU\DVWKH
YDOXDWLRQRIQHZFRQVWUXFWLRQKDVQRW\HWEHHQILQDOL]HG2QFH.LQJ&RXQW\
ILQDOL]HVWKH&LW\
VDVVHVVHGYDOXDWLRQDQGQHZFRQVWUXFWLRQWKH&RXQW\ZLOO
HVWDEOLVKWKH&LW\
VDFWXDOSURSHUW\WD[OHY\UDWHDQGSURSHUW\WD[HV7KH
&LW\
VWD[UDWHLVDWWKHUDWHOLPLWRISHUDVVHVVHGYDOXH
Page 3 of 6
FN.1 Page 28 of 281
7KHRUGLQDQFHZLOOEHSUHVHQWHGWRWKH&RXQFLOIRUDGRSWLRQDWWKHLU1RYHPEHU
PHHWLQJ
&5HVROXWLRQ1R +XUVK
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\2I$XEXUQ:DVKLQJWRQDGRSWLQJ
WKH&RPPXQLW\'HYHORSPHQW%ORFN*UDQWDFWLRQSODQIRUWKH
FRQVROLGDWHGSODQIRU\HDUVWR
$GYLVRUWRWKH0D\RU+XUVKSUHVHQWHG5HVROXWLRQ1RZKLFKSURYLGHV
IRUWKHDGRSWLRQRIWKH&RPPXQLW\'HYHORSPHQW%ORFN*UDQW$FWLRQ
3ODQIRUWKH&RQVROLGDWHG3ODQIRU\HDUVWR7KH$FWLRQ3ODQLV
UHTXLUHGE\WKH86'HSDUWPHQWRI+RXVLQJDQG8UEDQ'HYHORSPHQWLQRUGHU
IRUWKH&LW\WRUHFHLYHIHGHUDOHQWLWOHPHQWIXQGVXQGHUWKH&RPPXQLW\
'HYHORSPHQW%ORFN*UDQW &'%* SURJUDP$XEXUQDQWLFLSDWHVUHFHLYLQJ
LQ&'%*IXQGVLQ
7KH3ODQQLQJDQG&RPPXQLW\'HYHORSPHQW&RPPLWWHHUHYLHZHGWKH
UHVROXWLRQDQGIRUZDUGHGLWWRWKHIXOO&RXQFLOIRUDSSURYDO
'5HVROXWLRQ1R $QGHUVHQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHDQDJUHHPHQWEHWZHHQWKH
&LW\RI$XEXUQDQG.LQJ&RXQW\IRUGHVLJQSURMHFWPDQDJHPHQWDQG
FRQVWUXFWLRQPDQDJHPHQWVHUYLFHV
(QYLURQPHQWDO3URWHFWLRQ0DQDJHU$QGHUVHQSUHVHQWHG5HVROXWLRQ1R
ZKLFKDXWKRUL]HVWKHH[HFXWLRQRIDQ,QWHUDJHQF\$JUHHPHQWZLWK.LQJ
&RXQW\'HSDUWPHQWRI1DWXUDO5HVRXUFHVWRSURYLGHHQJLQHHULQJUHODWHG
VHUYLFHVIRUWKH)HQVWHU/HYHH6HWEDFN3KDVH3URMHFWDWWKHQRUWKHQGRI
)HQVWHU1DWXUH3DUN
7KHSXUSRVHRIWKHSURMHFWLVWRSURYLGHIRUQDWXUDOULYHUIXQFWLRQDQG
LQFUHDVHGQDWXUDOIORRGVWRUDJHDVVRFLDWHGZLWKUHFRQQHFWLQJWKHULYHUWRLWV
IORRGSODLQDQGZRXOGDGGLWLRQDOO\SURYLGHIRUVDOPRQKDELWDWDQGUHIXJHIRU
MXYHQLOHVDOPRQGXULQJIORRGHYHQWV
7KHSURMHFWKDVEHHQLQGHYHORSPHQWVLQFH 7KH&LW\KDVUHFHLYHG
IXQGLQJIURPVL[GLIIHUHQWVRXUFHVWKXVIDU7KH&LW\
VFRQWULEXWLRQLV
7KHEDODQFHRIWKHPLOOLRQSURMHFWLVIURPRWKHUIXQGLQJVRXUFHVSULPDULO\
LQWKHIRUPRIJUDQWV
7KHUHVROXWLRQZDVUHYLHZHGE\WKH3ODQQLQJDQG&RPPXQLW\'HYHORSPHQW
&RPPLWWHHDQGZLOOEHEHIRUHWKHIXOO&RXQFLOODWHUWKLVHYHQLQJIRUDGRSWLRQ
0HPEHU:DOHVLQTXLUHGZKHWKHUWKHSURMHFWZLOOLPSDFWDGMDFHQWSURSHUW\
RZQHUV0U$QGHUVHQH[SODLQHGWKDWWKHOHYHHZLOOEHPRYHGDSSUR[LPDWHO\
IHHWWRWKHZHVW7KHSURMHFWZLOOQRWFKDQJHWKHIORRGPDSSLQJWKDW
)(0$SHUIRUPV
(5HVROXWLRQ1R 6WRZH
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQDSSURYLQJ
DQGDXWKRUL]LQJDQ,QWHUORFDO$JUHHPHQWZLWKWKH&LW\RI)HGHUDO:D\WRVKDUH
WKHFRVWRIGHYHORSLQJDVRIWZDUHLQWHUIDFHWRVXSSRUWWKHQHZ9DOOH\Page 4 of 6
FN.1 Page 29 of 281
&RPPXQLFDWLRQ&RPSXWHU$LGHG'LVSDWFKV\VWHP
$FWLQJ,QQRYDWLRQDQG7HFKQRORJ\'LUHFWRU6WRZHSUHVHQWHG5HVROXWLRQ1R
IRU&RPPLWWHHUHYLHZ7KHUHVROXWLRQDXWKRUL]HVDQLQWHUORFDO
DJUHHPHQWZLWKWKHFLWLHVRI)HGHUDO:D\'HV0RLQHV%ODFN'LDPRQGDQG
$XEXUQWRFUHDWHDQLQWHUIDFHZLWKWKHQHZ9DOOH\&RPPXQLFDWLRQV&RPSXWHU
$LGHG'LVSDWFK &$' 6\VWHPWKDWZLOOHQDEOHWKHVKDULQJRIGDWDZLWKWKH
UHFRUGVV\VWHPXVHGE\WKH$XEXUQ3ROLFH7KH&LW\RI)HGHUDO:D\ZLOOWDNH
WKHOHDGLQWKHSURMHFWIRUWKHIRXUFLWLHV
7KHUHVROXWLRQZDVUHYLHZHGE\WKH0XQLFLSDO6HUYLFHV&RPPLWWHH
)5HVROXWLRQ1R &ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\2I$XEXUQ:DVKLQJWRQ
VXSSRUWLQJFUHDWLRQRIDVHFXUHFRQYHQLHQWPHGLFLQHUHWXUQSURJUDPLQ.LQJ
&RXQW\WRUHGXFHWKHSXEOLFVDIHW\DQGHQYLURQPHQWDOLPSDFWVRIXQZDQWHG
PHGLFLQH
)LQDQFH'LUHFWRU&ROHPDQSUHVHQWHG5HVROXWLRQ1RIRU&RPPLWWHH
UHYLHZ7KHUHVROXWLRQHQFRXUDJHVWKH.LQJ&RXQW\%RDUGRI+HDOWKWR
HVWDEOLVKDPHGLFLQHUHWXUQSURJUDPIRUXQZDQWHGPHGLFLQHVIURPKRXVHKROGV
WKURXJKDSKDUPDFHXWLFDOPDQXIDFWXUHUILQDQFLQJPHFKDQLVP
*3URSRVHG6ROLG:DVWH5DWHV &ROHPDQ
)LQDQFH'LUHFWRU&ROHPDQSUHVHQWHGWKHSURSRVHGVROLGZDVWH
UDWHV7KHFXUUHQWRUGLQDQFHFLW\FRGHSURYLGHVIRUDIRXUSHUFHQWUDWH
LQFUHDVHLQ KRZHYHUZKHQWKHUDWHZDVSXWLQHIIHFWWKHLQFUHDVH
LQWKHWLSSLQJIHHVZDVXQNQRZQ
7KH0XQLFLSDO6HUYLFHV&RPPLWWHHUHTXHVWHG)LQDQFHSUHVHQWDQHZUDWH
VWUXFWXUHWKDWLQFOXGHVWKHLQFUHDVHLQ.LQJ&RXQW\WLSSLQJIHHVDQGUHGXFHV
WKHUHVLGHQWLDOVXEVLG\7KHSURSRVHGUDWHVWUXFWXUHSURYLGHVIRUDGHFUHDVH
LQWKHUHVLGHQWLDOVXEVLG\WR7KHSURSRVHGUDWHVWUXFWXUHIRU
UHGXFHVWKHVXEVLG\WR7KHJRDORIWKH&RXQFLOLVWRUHGXFHWKH
VXEVLG\E\IRUHDFK\HDUWKHUHDIWHU
+)LQDQFLDO2SWLRQV$YDLODEOHWRWKH&LW\RI$XEXUQ &ROHPDQ
)LQDQFH'LUHFWRU&ROHPDQSUHVHQWHGWKH&RPPLWWHHZLWKDFKDUWVXPPDUL]LQJ
WKHUHPDLQLQJVRXUFHVRIUHYHQXHVDYDLODEOHWRWKH&LW\
0D\RU/HZLVVWDWHGWKDWWKHLQIRUPDWLRQZLOOEHSUHVHQWHGWRDOO&RXQFLO
FRPPLWWHHVDVWKH&RXQFLOSURFHHGVWRDGRSWWKH%LHQQLDO
%XGJHW0D\RU/HZLVVWDWHGWKHLQIRUPDWLRQLVSURYLGHGDVRSWLRQVDYDLODEOH
WRIXQGDUWHULDOUHFRQVWUXFWLRQZKLFKFDQQRWWDNHSODFHZLWKLQWKHH[LVWLQJ
EXGJHW
)LQDQFH'LUHFWRU&ROHPDQUHYLHZHGHDFKRIWKHFDWHJRULHV UHPDLQLQJGHEW
FDSDFLW\FRXQFLOPDQLFDQGYRWHUDSSURYHGSXEOLFXWLOLW\WD[FDEOHWYXWLOLW\
WD[JHQHUDOEXVLQHVVDQGRFFXSDWLRQWD[HVUHJXODWRU\OLFHQVHIHHVSDUN
GLVWULFWIRUPDWLRQDQGWUDQVSRUWDWLRQEHQHILWGLVWULFWILQDQFLQJRSWLRQV
,0XQLFLSDO8WLOLW\6HUYLFHVRQ0XFNOHVKRRW,QGLDQ7UXVW/DQG
Page 5 of 6
FN.1 Page 30 of 281
&LW\$WWRUQH\+HLGSUHVHQWHGSURSRVHGFLW\FRGHODQJXDJHUHODWLQJWRDQHZ
FODVVLILFDWLRQRIXWLOLW\FXVWRPHUIRUQRQOLHQDEOHSURSHUW\
$OVRSUHVHQWHGIRU&RPPLWWHHUHYLHZZDVD0DVWHU$JUHHPHQW3URYLVLRQVIRU
0XQLFLSDO8WLOLW\6HUYLFHRQ7UXVW/DQGVEHWZHHQWKH&LW\DQGWKH
0XFNOHVKRRW,QGLDQ7ULEH
6WDIIPHPEHUVKDYHEHHQZRUNLQJZLWKWKH0XFNOHVKRRW,QGLDQ7ULEHWR
GHYHORSDQDJUHHPHQWWRSURYLGH&LW\XWLOLW\VHUYLFHVWRWUXVWODQGVWKDWDUH
ZLWKLQWKHFLW\OLPLWVDQGZLWKLQ&LW\XWLOLW\VHUYLFHDUHDV7KHGUDIWDJUHHPHQW
DQGWKHGUDIWFLW\FRGHGHILQHWKHWHUPVE\ZKLFKWKH7ULEHDQGWKH&LW\ZLOO
LQVWDOORSHUDWHDQGPDLQWDLQXWLOLW\VHUYLFHRQWUXVWSURSHUW\$OVRWKH7ULEH
PXVWDJUHHWRSURYLGHDPHFKDQLVPWRDGGUHVVGHOLQTXHQWXWLOLW\DFFRXQWV
VLQFHWKH&LW\FDQQRWOLHQWUXVWODQGVIRUXWLOLW\SD\PHQWFROOHFWLRQ
9$'-28510(17
7KHUHEHLQJQRIXUWKHUEXVLQHVVWRFRPHEHIRUHWKH&RPPLWWHHWKHPHHWLQJ
DGMRXUQHGDW SP
$33529('WKLVBBBBGD\RIBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
-RKQ3DUWULGJH&KDLU'DQLHOOH'DVNDP&LW\&OHUN
Page 6 of 6
FN.1 Page 31 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU6SHFLDO0HHWLQJ
'DWH
1RYHPEHU
'HSDUWPHQW
$GPLQLVWUDWLRQ
$WWDFKPHQWV
1RYHPEHU6SHFLDO0HHWLQJ
$JHQGD
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
&RXQFLOPHPEHU :DJQHU 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &&
AUBURN * MORE THAN YOU IMAGINEDCC.2 Page 32 of 281
CC.2 Page 33 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU0LQXWHV
'DWH
1RYHPEHU
'HSDUWPHQW
$GPLQLVWUDWLRQ
$WWDFKPHQWV
1RYHPEHU0LQXWHV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
&RXQFLOPHPEHU %DFNXV 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &2&
AUBURN * MORE THAN YOU IMAGINEDCOC.1 Page 34 of 281
&RXQFLO2SHUDWLRQV&RPPLWWHH
1RYHPEHU 30
&LW\+DOO&RQIHUHQFH5RRP
0,187(6
,&$//7225'(5
$5ROO&DOO
&KDLU1DQF\%DFNXVFDOOHGWKHPHHWLQJWRRUGHUDW SPLQWKH
&RXQFLO&RQIHUHQFH5RRPDW$XEXUQ&LW\+DOOORFDWHGDW:HVW
0DLQ6WUHHWLQ$XEXUQ
0HPEHUVLQDWWHQGDQFHLQFOXGHG&KDLU1DQF\%DFNXV9LFH&KDLU5LFK
:DJQHUDQG0HPEHU%LOO3HOR]D$OVRLQDWWHQGDQFHZHUH
&RXQFLOPHPEHU-RKQ3DUWULGJH&LW\$WWRUQH\'DQ+HLGDQG'HSXW\
&LW\&OHUN6KDZQ&DPSEHOO
%$QQRXQFHPHQWV
7KHUHZDVQRDQQRXQFHPHQW
&$JHQGD0RGLILFDWLRQV
0LQXWHVIRUWKH2FWREHU&RXQFLO2SHUDWLRQV
&RPPLWWHH0HHWLQJZHUHDGGHGWRWKHDJHQGD
,,&216(17$*(1'$
$2FWREHU0LQXWHV
9LFH&KDLU:DJQHUPRYHGDQG0HPEHU3HOR]DVHFRQGHGWRDSSURYH
WKH2FWREHUPLQXWHV
0RWLRQFDUULHGXQDQLPRXVO\
,,,',6&866,21,7(06
$&RXQFLO5HSUHVHQWDWLRQZLWKWKH$XEXUQ9DOOH\+XPDQH6RFLHW\
&RPPLWWHHPHPEHUVUHYLHZHGWKHFRQWUDFWEHWZHHQWKH&LW\DQG
$XEXUQ9DOOH\+XPDQH6RFLHW\ $9+6 ,WZDVQRWHGWKH&LW\
UHSUHVHQWDWLYHRQWKH$9+6%RDUGLV3ODQQLQJDQG'HYHORSPHQW
'LUHFWRU.HYLQ6Q\GHUDQGWKH&RXQFLO/LDLVRQLV&RXQFLOPHPEHU
3DUWULGJH
&RXQFLOPHPEHU3HOR]DZKRLVWKH&KDLURIWKH0XQLFLSDO6HUYLFHV
Page 1 of 3
COC.1 Page 35 of 281
&RPPLWWHHH[SODLQHGWKDWWKH0XQLFLSDO6HUYLFHV&RPPLWWHHRQ
6HSWHPEHUUHTXHVWHGRQHRILWVPHPEHUV&RXQFLOPHPEHU
:DOHVDWWHQGWKH2FWREHU$9+6ERDUGPHHWLQJ0HPEHU
3HOR]DFODULILHG&RXQFLOPHPEHU:DOHVZDVQRWUHSODFLQJ
&RXQFLOPHPEHU3DUWULGJHDVWKH&RXQFLO/LDLVRQ
,WZDVSRLQWHGRXWWKH$9+6LVQRWUHTXLUHGWRKDYHSXEOLFPHHWLQJV
'XULQJWKHPHHWLQJRQ2FWREHU$9+6KHOGDSXEOLFPHHWLQJ
IROORZHGE\DFORVHGVHVVLRQ$WWHQGHHVSUHVHQWIRUWKHSXEOLFPHHWLQJ
ZKRZHUHQRW%RDUG0HPEHUVZHUHDVNHGWROHDYHIRUWKHFORVHG
VHVVLRQSRUWLRQDOWKRXJKQRWD$9+6ERDUGPHPEHU&RXQFLOPHPEHU
3DUWULGJHZDVDOORZHGWRVWD\EHFDXVHKHZDVSUHVHQWLQJDUHSRUWWR
WKH$9+6%RDUGRQEHKDOIRIWKH$9+63XEOLF5HODWLRQV&RPPLWWHH
&RXQFLOPHPEHUVGLVFXVVHGWKHQHFHVVLW\IRUDJRRGZRUNLQJ
UHODWLRQVKLSEHWZHHQWKH&LW\DQG$9+6
&KDLU%DFNXVUHTXHVWHGFODULILFDWLRQDQGOHJDORSLQLRQIURP&LW\
$WWRUQH\+HLGRQWKHEHVWODQJXDJHWRFODULI\D&RXQFLOPHPEHU¶VUROH
DVDOLDLVRQWRDERDUG&LW\$WWRUQH\+HLGVWDWHGD&RXQFLOPHPEHUV
FRXOGEHDERDUGPHPEHURIDQRWKHUHQWLW\LQWKHLULQGLYLGXDOFDSDFLW\
%XWLIWKDWHQWLW\KDGFRQWUDFWXDOGHDOLQJVZLWKWKH&LW\WKDWFRXOG
FUHDWHFRQIOLFWVWKDWZRXOGKDYHWREHDGGUHVVHG
7KH&RPPLWWHHGLVFXVVHGH[SHFWDWLRQVRI&RXQFLO/LDLVRQVLQFOXGLQJ
ZKRKDVWKHDXWKRULW\WRDSSRLQWDOLDLVRQDQGWKHUHVSRQVLELOLW\RID
&RXQFLO/LDLVRQ&LW\$WWRUQH\+HLGVXJJHVWHGODQJXDJHWKDWFRXOGEH
DGGHGWR&RXQFLO5XOHVDQG3URFHGXUHVGHILQLQJDOLDLVRQDVDSRVLWLRQ
IRUWKHSXUSRVHRIFRPPXQLFDWLQJLQIRUPDWLRQEDFNWRWKH&LW\&RXQFLO
UHJDUGLQJWKHPHHWLQJVDWWHQGHG$OLDLVRQZRXOGRQO\FRPPXQLFDWH
LQIRUPDWLRQWRWKHRXWVLGHHQWLW\DVGLUHFWHGE\WKH&LW\&RXQFLO+H
DGYLVHGPHPEHUVWRHQVXUHSDUWLHVNQRZDVWDWHPHQWLVD
FRXQFLOPHPEHU
VRZQSHUVRQDORSLQLRQE\VWDWLQJ³LQP\RSLQLRQ´
EHIRUHDVWDWHPHQW&KDLU%DFNXVVDLGWKHUHLVDILQHOLQHEHWZHHQ
JLYLQJDQRSLQLRQDQGFRPPLWWLQJWKH&LW\&RXQFLOPHPEHU3HOR]DVDLG
WKHODQJXDJHSURYLGHGLVYHU\JHQHUDO9LFH&KDLU:DJQHUUHTXHVWHG
DGGLQJODQJXDJHWKDWVWDWHVD0HPEHUZLOOXVHSUXGHQFHZKHQ
DWWHQGLQJPHHWLQJVZLWKHQWLWLHVWKDWFRQWUDFWZLWKWKH&LW\9LFH&KDLU
:DJQHUVXJJHVWHG&RXQFLOPHPEHUVFRRUGLQDWHWKHLUDWWHQGDQFHZLWK
WKH&LW\/LDLVRQSULRUWRDWWHQGLQJDPHHWLQJ
'HSXW\0D\RU%DFNXVVWDWHGWKH&RPPLWWHHZLOOUHYLHZWKHUHYLVHG
ODQJXDJHDWWKH'HFHPEHU&RXQFLO2SHUDWLRQV&RPPLWWHH
PHHWLQJ
%-XQLRU&LW\&RXQFLO
9LFH&KDLU:DJQHUDVNHGIRUWKHVWDWXVRIWKH-XQLRU&LW\&RXQFLO&LW\
$WWRUQH\+HLGVWDWHGWKH&LW\LVLQGLVFXVVLRQVZLWKWKH6FKRRO'LVWULFW
Page 2 of 3
COC.1 Page 36 of 281
UHJDUGLQJVHYHUDOIDFWRUV&KDLU%DFNXVUHTXHVWHGWKH&LW\LQYLWHD
UHSUHVHQWDWLYHIURPWKH6FKRRO'LVWULFWDWWHQGWKH'HFHPEHU
&RXQFLO2SHUDWLRQVPHHWLQJWRGLVFXVVWKH-XQLRU&LW\&RXQFLOZLWKWKH
&RPPLWWHH
,9$'-28510(17
7KHUHEHLQJQRIXUWKHUEXVLQHVVWKHPHHWLQJDGMRXUQHGDW SP
$SSURYHGWKLVUGGD\RI'HFHPEHU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1DQF\%DFNXV&KDLU6KDZQ&DPSEHOO'HSXW\&LW\&OHUN
Page 3 of 3
COC.1 Page 37 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
1RYHPEHU5HJXODU0HHWLQJ0LQXWHV
'DWH
1RYHPEHU
'HSDUWPHQW
$GPLQLVWUDWLRQ
$WWDFKPHQWV
0LQXWHV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODSSURYHWKH1RYHPEHU&RXQFLOPLQXWHV
%DFNJURXQG6XPPDU\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
&RXQFLOPHPEHU 6WDII
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &$$
AUBURN * MORE THAN YOU IMAGINEDCA.A Page 38 of 281
&LW\&RXQFLO0HHWLQJ
1RYHPEHU 30
$XEXUQ&LW\+DOO
0,187(6
:DWFKWKHPHHWLQJYLGHR
0HHWLQJYLGHRVDUHQRWDYDLODEOHXQWLOKRXUVDIWHUWKHPHHWLQJKDVFRQFOXGHG
,&$//7225'(5
$)ODJ6DOXWH
0D\RU3HWHU%/HZLVFDOOHGWKHPHHWLQJWRRUGHUDW SPLQWKH
$XEXUQ&LW\+DOO&RXQFLO&KDPEHUVORFDWHGDW:HVW0DLQ6WUHHW
DQGOHGWKRVHLQDWWHQGDQFHLQWKH3OHGJHRI$OOHJLDQFH
%5ROO&DOO
&RXQFLOPHPEHUVSUHVHQW 5LFK:DJQHU1DQF\%DFNXV%LOO3HOR]D
-RKQ3DUWULGJH/DUJR:DOHV:D\QH2VERUQHDQG-RKQ+ROPDQ
'HSDUWPHQWGLUHFWRUVDQGVWDIIPHPEHUVSUHVHQW &LW\$WWRUQH\'DQLHO
%+HLG3XEOLF:RUNV'LUHFWRU'HQQLV'RZG\3ODQQLQJDQG
'HYHORSPHQW'LUHFWRU.HYLQ6Q\GHU,7$FWLQJ'LUHFWRU5HED6WRZH
(FRQRPLF'HYHORSPHQW0DQDJHU'RXJ/HLQ(FRQRPLF'HYHORSPHQW
3ODQQHU%LOO7KRPDV$GYLVRUWRWKH0D\RU0LFKDHO+XUVK3ROLFH
&RPPDQGHU'DYLG&ROJOD]LHUDQG&LW\&OHUN'DQLHOOH'DVNDP
&$QQRXQFHPHQWV$SSRLQWPHQWVDQG3UHVHQWDWLRQV
1DWLRQDO$PHULFDQ,QGLDQ+HULWDJH0RQWK3URFODPDWLRQ
0D\RU/HZLVWRSURFODLP1RYHPEHUDV1DWLRQDO$PHULFDQ
,QGLDQ+HULWDJH0RQWKLQWKHFLW\RI$XEXUQ
0D\RU/HZLVSURFODLPHG1RYHPEHUDV1DWLRQDO$PHULFDQ
,QGLDQ+HULWDJH0RQWKLQWKHFLW\RI$XEXUQ0D\RU/HZLVUHDG
DQGSUHVHQWHGWKHSURFODPDWLRQWR3HJJ\*ROGHQPDQ5HJHQWIRU
WKH/DNRWD&KDSWHURIWKH'DXJKWHUVRIWKH$PHULFDQ5HYROXWLRQ
DQGXUJHGFLWL]HQVWRUHFRJQL]HDQGFRPPHPRUDWHWKHLPSRUWDQW
FRQWULEXWLRQVWKDWWKH$PHULFDQ,QGLDQDQG$ODVNDQ1DWLYH
SHRSOHVKDYHPDGHWRRXUFRXQWU\DQGFRPPXQLWLHV
0V*ROGHQPDQQRWHGWKHPDQ\FRQWULEXWLRQVRIWKHQDWLYH
SHRSOHVWRWKHFRXQWU\DQGWKDQNHG0D\RU/HZLVDQGPHPEHUVRI
WKH&LW\&RXQFLOIRUWKHLUVXSSRUWDQGUHFRJQLWLRQRIWKHFRXQWU\
V
1DWLYH$PHULFDQKHULWDJH
(DUO\/HDUQLQJ3URJUDP
0D\RU/HZLVDQQRXQFHGWKDWWKH&LW\RI$XEXUQLVWKHUHFLSLHQWRI
Page 1 of 11
CA.A Page 39 of 281
WKH$OO$PHULFD&LW\$ZDUGIRUJUDGHOHYHOUHDGLQJ
PRELOL]DWLRQ7KHDZDUGZDVLVVXHGE\WKH1DWLRQDO&LYLF/HDJXH
WRWKH&LW\RI$XEXUQDQGWKH6RXWK.LQJ&RXQW\5HJLRQLQ
UHFRJQLWLRQRIFRRSHUDWLYHHIIRUWVWRLPSURYHJUDGHOHYHOUHDGLQJLQ
WKHDUHDVFKRROV
'$JHQGD0RGLILFDWLRQV
7KHUHZDVQRFKDQJHWRWKHDJHQGD
,,&,7,=(1,138738%/,&+($5,1*6 &255(6321'(1&(
$3XEOLF+HDULQJV
1RSXEOLFKHDULQJZDVVFKHGXOHGIRUWKLVHYHQLQJ
%$XGLHQFH3DUWLFLSDWLRQ
7KLVLVWKHSODFHRQWKHDJHQGDZKHUHWKHSXEOLFLVLQYLWHGWRVSHDNWR
WKH&LW\&RXQFLORQDQ\LVVXH7KRVHZLVKLQJWRVSHDNDUHUHPLQGHGWR
VLJQLQRQWKHIRUPSURYLGHG
-RKQ7KHLVHQWK$YHQXH6($XEXUQ:$
0U7KHLVHQ&KLHI([HFXWLYH2IILFHUIRU2ULRQ,QGXVWULHVVSRNH
UHJDUGLQJ5HVROXWLRQ1RVDQGUHODWLQJWRUHDOHVWDWH
SXUFKDVHDQGVDOHDJUHHPHQWVEHWZHHQWKH&LW\DQG.LQJ&RXQW\DQG
WKH&LW\DQG2ULRQ,QGXVWULHV+HWKDQNHGWKH&LW\&RXQFLOIRU
FRQVLGHUDWLRQRIWKHUHVROXWLRQV2ULRQ,QGXVWULHVLVD\HDU
ROGEXVLQHVVHQWHUSULVHZLWKDVRFLDOPLVVLRQWRSURYLGHMREWUDLQLQJ
DQGMRESODFHPHQWVHUYLFHVIRUSHRSOHZLWKGLVDELOLWLHV,Q2ULRQ
,QGXVWULHVZLOOVHUYHRYHUSHRSOHZLWKVHYHUHGLVDELOLWLHV2ULRQ
,QGXVWULHVLQFOXGHVDVHDWFRQWDFWFHQWHUDQGDQDHURVSDFH
PDQXIDFWXULQJGLYLVLRQVSHFLDOL]LQJLQPDFKLQHSDUWVVKHHWPHWDO
IDEULFDWLRQPHFKDQLFDODVVHPEO\DQGK\GUDXOLFDVVHPEO\2ULRQ
,QGXVWULHVZLOOUHORFDWHWRDODUJHUIDFLOLW\WREHGHYHORSHGRQSURSHUW\
DGMDFHQWWRWKH$XEXUQ0XQLFLSDO$LUSRUW0U7KHLVHQWKDQNHG
(FRQRPLF'HYHORSPHQW0DQDJHU'RXJ/HLQIRUKLVHIIRUWV
*HRUJH/\GHQ'6W1($XEXUQ:$
0U/\GHQUHSUHVHQWLQJWKH3HWHUVRQ&RPSDQ\VSRNHLQIDYRURI
2UGLQDQFH1RDQGWKDQNHG&RXQFLOIRUWKHLUFRQVLGHUDWLRQRIWKH
RUGLQDQFH
&&RUUHVSRQGHQFH
7KHUHZDVQRFRUUHVSRQGHQFHIRU&RXQFLOUHYLHZ
,,,&281&,/&200,77((5(32576
$0XQLFLSDO6HUYLFHV
Page 2 of 11
CA.A Page 40 of 281
&KDLU3HOR]DUHSRUWHGWKH0XQLFLSDO6HUYLFHV&RPPLWWHHPHW2FWREHU
7KH&RPPLWWHHUHYLHZHG5HVROXWLRQ1RDXWKRUL]LQJ
DQLQWHUORFDODJUHHPHQWZLWK)HGHUDO:D\'HV0RLQHVDQG%ODFN
'LDPRQGIRUWKHGHYHORSPHQWRIVRIWZDUHLQWHUIDFHWRVXSSRUWWKHQHZ
9DOOH\&RP&RPSXWHU$LGHG'LVSDWFKV\VWHP7KH&RPPLWWHH
PHPEHUVGLVFXVVHGILQDQFLDORSWLRQVJROIFRXUVHILQDQFLDOV
VROLGZDVWHUDWHV5HVROXWLRQ1RUHODWLQJWRDPHGLFLQH
UHWXUQSURJUDPDQXSGDWHRQWKHDQLPDOFRQWUROOLFHQVLQJSURJUDPDQG
OLFHQVLQJFRQWUDFWRU3HW'DWD5HVROXWLRQ1RDFFHSWLQJD
FRQVHUYDWLRQJUDQWIURP3XJHW6RXQG(QHUJ\WKH5HG/LJKW3KRWR
(QIRUFHPHQW3URJUDPDQGWKH&RPPLWWHH
VSURMHFWPDWUL[7KHQH[W
UHJXODUPHHWLQJRIWKH0XQLFLSDO6HUYLFHV&RPPLWWHHLVVFKHGXOHGIRU
1RYHPEHUDW SP
%3ODQQLQJ &RPPXQLW\'HYHORSPHQW
&KDLU%DFNXVUHSRUWHGWKH3ODQQLQJDQG&RPPXQLW\'HYHORSPHQW
&RPPLWWHHPHW2FWREHU7KH&RPPLWWHHUHFHLYHGD
SUHVHQWDWLRQIURPWKH8UEDQ7UHH%RDUGRQWKHLU%RDUGDFWLYLWLHV7KH
&RPPLWWHHDOVRUHYLHZHG5HVROXWLRQ1RDSSURYLQJWKH$QQXDO
$FWLRQ3ODQIRUWKH&RQVROLGDWHG$QQXDO3HUIRUPDQFHDQG
(YDOXDWLRQ5HSRUWUHTXLUHGE\WKH'HSDUWPHQWRI+RXVLQJDQG8UEDQ
'HYHORSPHQW2UGLQDQFH1RUHODWLQJWRFRPPHUFLDODQG
LQGXVWULDO]RQHV2UGLQDQFH1RUHODWLQJWRVSHFLDOSXUSRVH
]RQHV2UGLQDQFH1RUHODWLQJWRVWDQGDUGVIRUVSHFLILFODQG
XVHVDQG5HVROXWLRQ1RDXWKRUL]LQJDQLQWHUDJHQF\DJUHHPHQW
ZLWK.LQJ&RXQW\'HSDUWPHQWRI1DWXUDO5HVRXUFHVUHODWLQJWRWKH
)HQVWHU/HYHH6HWEDFN3URMHFW7KH&RPPLWWHHDOVR
GLVFXVVHGILQDQFLDORSWLRQVDYDLODEOHWRWKH&LW\DQGWKH&RPPLWWHH
V
SURMHFWPDWUL[7KHQH[WUHJXODUPHHWLQJRIWKH3ODQQLQJDQG
&RPPXQLW\'HYHORSPHQW&RPPLWWHHLVVFKHGXOHGIRU1RYHPEHU
DW SP
&3XEOLF:RUNV
&KDLU:DJQHUUHSRUWHGWKH3XEOLF:RUNV&RPPLWWHHPHWWKLV
DIWHUQRRQDW 7KH&RPPLWWHHDSSURYHGDULJKWRIZD\XVHSHUPLW
IRU%XUOLQJWRQ1RUWKHUQ6DQWD)H5DLOURDGWRDOORZJURXQGZDWHUTXDOLW\
PRQLWRULQJRQ$6WUHHW6(DFRQVXOWDQWDJUHHPHQWZLWK5+
(QJLQHHULQJIRUZRUNUHODWHGWRWKH:HOO(PHUJHQF\3RZHU
,PSURYHPHQWV3URMHFW &$ DQGDFKDQJHRUGHUIRUWKHWK
:HWODQG0LWLJDWLRQ0RQLWRULQJ3URMHFW &$ 7KH&RPPLWWHH
UHFHLYHGDSUHVHQWDWLRQIURP)LQDQFH'LUHFWRU&ROHPDQRQILQDQFLQJ
RSWLRQVDQGERQGLQJDXWKRULW\DYDLODEOHWRWKH&LW\SDUWLFXODUO\IRU
WUDQVSRUWDWLRQLPSURYHPHQWV7KH&RPPLWWHHGLVFXVVHG2UGLQDQFH
1RUHODWLQJWRWKHSURSHUW\WD[OHY\IRU5HVROXWLRQ1R
DXWKRUL]LQJDVHWWOHPHQWDJUHHPHQWZLWK:DVWH0DQDJHPHQWIRU
GDPDJHVVXIIHUHGE\VROLGZDVWHFXVWRPHUV5HVROXWLRQ1R
Page 3 of 11
CA.A Page 41 of 281
DXWKRUL]LQJDQDJUHHPHQWEHWZHHQWKH&LW\DQG.LQJ&RXQW\IRUWKH
)HQVWHU/HYHH6HWEDFN3URMHFWWKHFRGHXSGDWHSURMHFW5HVROXWLRQ
1RUHODWLQJWRVXUSOXVHTXLSPHQWWKHFDSLWDOSURMHFWVWDWXV
UHSRUWDQGDFWLRQWUDFNLQJPDWUL[DQGDXWLOLW\SROLF\IRUQRQOLHQDEOH
SURSHUWLHV7KHQH[WUHJXODUPHHWLQJRIWKH3XEOLF:RUNV&RPPLWWHH
LVVFKHGXOHGIRU1RYHPEHU DW SP
')LQDQFH
&KDLU3DUWULGJHUHSRUWHGWKH)LQDQFH&RPPLWWHHPHWWKLVHYHQLQJDW
7KH&RPPLWWHHKDGDGLVFXVVLRQUHJDUGLQJJDPEOLQJWD[HV
ZLWK&KULV.HDO\RI,URQ+RUVH&DVLQR7KH&RPPLWWHHUHYLHZHG
FODLPVYRXFKHUVLQWKHDPRXQWRI DQGSD\UROOYRXFKHUV
LQWKHDPRXQWRI7KH&RPPLWWHHDOVR
UHYLHZHG5HVROXWLRQ1RVDQG7KH&RPPLWWHH
GLVFXVVHGWKHJDPEOLQJWD[UDWHRQVRFLDOFDUGJDPHVDQGD
SURPLVVRU\QRWHIRUXQSDLGJDPEOLQJWD[HVIURP,URQ+RUVH&DVLQR
7KH&RPPLWWHHDOVRGLVFXVVHG2UGLQDQFH1R 5HVROXWLRQ1RV
DQG WKHVROLGZDVWHUDWHV
ILQDQFLDORSWLRQVIRUWKH&LW\DQGXWLOLW\VHUYLFHVRQXQOLHQDEOH
SURSHUWLHV7KHQH[WUHJXODUPHHWLQJRIWKH)LQDQFH&RPPLWWHHLV
VFKHGXOHGIRU1RYHPEHU DW SP
(/HV*RYH&RPPXQLW\&DPSXV
&KDLU:DJQHUUHSRUWHGWKH/HV*RYH&RPPXQLW\&DPSXV&RPPLWWHH
PHW1RYHPEHU7KH&RPPLWWHHUHFHLYHGDSUHVHQWDWLRQIURP
WKH1DWLRQDO'HYHORSPHQW&RXQFLORQSURMHFWVFRSHDQGFRVWV
VFKHGXOHDQGILQDQFLQJVWUXFWXUHVIRUWKH&RPPXQLW\&HQWHUDQGRWKHU
LPSURYHPHQWVLQWKH/HV*RYH&RPPXQLW\&DPSXV7KH&RPPLWWHH
ZLOOPHHWDJDLQRQ1RYHPEHUWRGLVFXVVRSHUDWLRQDODQG
PDLQWHQDQFHFRVWVDVVRFLDWHGZLWKWKHQHZFRPPXQLW\FHQWHU
)&RXQFLO2SHUDWLRQV&RPPLWWHH
&KDLU%DFNXVUHSRUWHGWKH&RXQFLO2SHUDWLRQV&RPPLWWHHPHWWKLV
HYHQLQJDW 7KH&RPPLWWHHGLVFXVVHGWKHUROHDQG
UHVSRQVLELOLWLHVRIWKH&RXQFLOOLDLVRQVDQGWKHVWDWXVRIWKHSURSRVHG
$XEXUQ-XQLRU&RXQFLO7KHQH[WUHJXODUPHHWLQJRIWKH&RXQFLO
2SHUDWLRQV&RPPLWWHHLVVFKHGXOHGIRU'HFHPEHUDW
SP
,9&216(17$*(1'$
$OOPDWWHUVOLVWHGRQWKH&RQVHQW$JHQGDDUHFRQVLGHUHGE\WKH&LW\
&RXQFLOWREHURXWLQHDQGZLOOEHHQDFWHGE\RQHPRWLRQLQWKHIRUPOLVWHG
$2FWREHU5HJXODU0HHWLQJ0LQXWHV
%&ODLPV9RXFKHUV
Page 4 of 11
CA.A Page 42 of 281
&ODLPVFKHFNQXPEHUVWKURXJK LQWKHDPRXQW
DQGGDWHG1RYHPEHU
&3D\UROO9RXFKHUV 3DUWULGJH&ROHPDQ
3D\UROOFKHFNQXPEHUVWKURXJKLQWKHDPRXQWRI
DQGHOHFWURQLFGHSRVLWWUDQVPLVVLRQVLQWKHDPRXQWRI
IRUDJUDQGWRWDORIIRUWKHSHULRG
FRYHULQJ2FWREHU
'3XEOLF:RUNV3URMHFW1R&$ :DJQHU'RZG\
&LW\&RXQFLODSSURYH&KDQJH2UGHU1RLQWKH$PRXQWRI
WR&RQWUDFW1RIRU:RUNRQ3URMHFW1R&$WK:HWODQG
0LWLJDWLRQ0RQLWRULQJ $QQXDO
(3XEOLF:RUNV3URMHFW1R&$ :DJQHU'RZG\
&LW\&RXQFLOJUDQWSHUPLVVLRQWRHQWHULQWR&RQVXOWDQW$JUHHPHQW1R
$*&ZLWK5+(QJLQHHULQJIRU(QJLQHHULQJDQG&RQVWUXFWLRQ
6HUYLFHVIRU3URMHFW1R&$:HOO(PHUJHQF\3RZHU
,PSURYHPHQWV
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU:DJQHUVHFRQGHG
WRDSSURYHWKH&RQVHQW$JHQGD
7KH&RQVHQW$JHQGDLQFOXGHVFODLPVDQGSD\UROOYRXFKHUV3XEOLF
:RUNV3URMHFW1R&$DQG3XEOLF:RUNV3URMHFW1R&$
027,21&$55,('81$1,0286/<
981),1,6+('%86,1(66
7KHUHZDVQRXQILQLVKHGEXVLQHVV
9,1(:%86,1(66
7KHUHZDVQRQHZEXVLQHVV
9,,25',1$1&(6
$2UGLQDQFH1R +HLG
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DPHQGLQJ6HFWLRQV
DQGDQG&KDSWHURIWKH$XEXUQ&LW\&RGH
UHODWLQJWRDQGDFFRPPRGDWLQJFKDQJHVIURPWKH0XQLFLSDO&RXUWWR
WKH'LVWULFW&RXUWV\VWHPV
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU:DJQHUVHFRQGHG
WRDGRSW2UGLQDQFH1R
7KHRUGLQDQFHFKDQJHVUHIHUHQFHVWRWKH$XEXUQ0XQLFLSDO&RXUWWR
WKHGLVWULFWFRXUWV\VWHPV7KHRUGLQDQFHLVDKRXVHNHHSLQJ
Page 5 of 11
CA.A Page 43 of 281
PHDVXUHDQGSURYLGHVFRQVLVWHQF\ZLWKLQWKHFRGH
027,21&$55,('81$1,0286/<
%2UGLQDQFH1R %DFNXV6Q\GHU
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DSSURYLQJWKHUHTXHVWRI*HRUJH/\GHQIRUUH]RQLQJRIDQ
DSSUR[LPDWHO\DFUHSDUFHOIURP&/LJKW&RPPHUFLDOWR0
/LJKW,QGXVWULDOWRLPSOHPHQWWKH&RPSUHKHQVLYH3ODQDQGDPHQGLQJ
WKH&LW\
V]RQLQJPDSV
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJH
VHFRQGHGWRDGRSW2UGLQDQFH1R
7KHRUGLQDQFHSURYLGHVIRUWKHUH]RQHRIDSSUR[LPDWHO\DFUHVRI
SURSHUW\ORFDWHGLQWKH EORFNRI$6WUHHW1:IURP&/LJKW
&RPPHUFLDOWR0/LJKW,QGXVWULDO
027,21&$55,('81$1,0286/<
&2UGLQDQFH1R %DFNXV6Q\GHU
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DPHQGLQJ6HFWLRQV$ DQG $
RIWKH$XEXUQ&LW\&RGHFUHDWLQJQHZ6HFWLRQV
DQG DQGFUHDWLQJDQHZ
&KDSWHUWRWKH$XEXUQ&LW\&RGH UHSHDOLQJ6HFWLRQ
RIWKH&LW\&RGHDQGUHSHDOLQJ&KDSWHUV
DQGRIWKH$XEXUQ&LW\&RGHUHODWLQJWR]RQLQJDQG
FRPPHUFLDODQGLQGXVWULDO]RQHV
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
WRDGRSW2UGLQDQFH1R
7KHRUGLQDQFHLVSDUWRIWKH3KDVHFRGHXSGDWHSURMHFW7KH
RUGLQDQFHSURYLGHVIRUFRGHDPHQGPHQWVWKDWZLOOUHRUJDQL]HDQG
XSGDWHUHJXODWLRQVDQGVWDQGDUGVUHODWHGWRFRPPHUFLDODQGLQGXVWULDO
XVHV7KHFRGHXSGDWHSURMHFWLVLQWHQGHGWRLPSURYHGHYHORSPHQW
FRGHUHDGDELOLW\DQGHDVHRIXVHXSGDWHWHFKQLFDOFRQWHQWWRDGGUHVV
NQRZQLVVXHDUHDVDQGEHWWHUVXSSRUWWKH&LW\
VGHYHORSPHQWUHYLHZ
DQGTXDVLMXGLFLDOGHFLVLRQSURFHVVHQVXUHGHYHORSPHQWFRGHDQG
GHVLJQVWDQGDUGVDUHFRRUGLQDWHGDQGFRQVLVWHQWZLWKWKH
&RPSUHKHQVLYH3ODQDQGSURPRWHVXVWDLQDELOLW\FRQFHSWVZKHUH
IHDVLEOH
027,21&$55,('81$10286/<
Page 6 of 11
CA.A Page 44 of 281
'2UGLQDQFH1R %DFNXV6Q\GHU
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
FUHDWLQJDQHZ&KDSWHUWRWKH$XEXUQ&LW\&RGH6SHFLDO
3XUSRVH=RQHVDQGUHSHDOLQJ&KDSWHUVDQGRI
WKH$XEXUQ&LW\&RGH DOOUHODWLQJWR]RQLQJ
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
WRDGRSW2UGLQDQFH1R
7KHSXUSRVHRIWKHRUGLQDQFHLVWRUHRUJDQL]HDQGXSGDWHUHJXODWLRQV
DQGVWDQGDUGVUHODWHGWRVSHFLDOSXUSRVH]RQHV
027,21&$55,('81$1,0286/<
(2UGLQDQFH1R %DFNXV6Q\GHU
$Q2UGLQDQFHRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
FUHDWLQJDQHZ&KDSWHUWRWKH$XEXUQ&LW\&RGH6WDQGDUGVIRU
6SHFLILF/DQG8VHV UHODWLQJWR]RQLQJ
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
WRDGRSW2UGLQDQFH1R
2UGLQDQFH1RDGGVVSHFLILFVWDQGDUGVIRUFHUWDLQODQGXVHV
ZLWKLQLQGLYLGXDORUPXOWLSOHQRQUHVLGHQWLDO]RQHVWRPLWLJDWHWKHLU
SRWHQWLDODGYHUVHLPSDFWV
027,21&$55,('81$1,0286/<
9,,,5(62/87,216
$5HVROXWLRQ1R 3DUWULGJH6Q\GHU
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHD&RQVHUYDWLRQ*UDQW
$JUHHPHQWEHWZHHQWKH&LW\RI$XEXUQDQG3XJHW6RXQG(QHUJ\
&RXQFLOPHPEHU3DUWULGJHPRYHGDQG&RXQFLOPHPEHU+ROPDQ
VHFRQGHGWRDGRSW5HVROXWLRQ1R
7KH&LW\KDVXQGHUWDNHQDKHDWLQJYHQWLODWLRQDQGDLUFRROLQJ
XSJUDGHSURMHFWDWWKH$XEXUQ-XVWLFH&HQWHU7KHSURMHFWLVHOLJLEOH
IRUD3XJHW6RXQG(QHUJ\&RQVHUYDWLRQ*UDQWLQWKHDPRXQWRI
027,21&$55,('81$1,0286/<
%5HVROXWLRQ1R %DFNXV+XUVK
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DGRSWLQJWKH&RPPXQLW\'HYHORSPHQW%ORFN*UDQW$FWLRQ3ODQ
IRUWKH&RQVROLGDWHG3ODQIRU\HDUV
Page 7 of 11
CA.A Page 45 of 281
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
WRDGRSW5HVROXWLRQ1R
7KH$QQXDO$FWLRQ3ODQLVDUHTXLUHPHQWRIWKH'HSDUWPHQWRI+RXVLQJ
DQG8UEDQ'HYHORSPHQW +8' LQRUGHUWRUHFHLYHIHGHUDOJUDQWV
XQGHUWKH&RPPXQLW\'HYHORSPHQW%ORFN*UDQW3URJUDP$KHDULQJ
RQWKH3ODQZDVKHOGRQ2FWREHU
027,21&$55,('81$1,0286/<
&5HVROXWLRQ1R %DFNXV6Q\GHU
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHDQDJUHHPHQW
EHWZHHQWKH&LW\RI$XEXUQDQG.LQJ&RXQW\IRUGHVLJQSURMHFW
PDQDJHPHQWDQGFRQVWUXFWLRQPDQDJHPHQWVHUYLFHV
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
WRDGRSW5HVROXWLRQ1R
7KHUHVROXWLRQDXWKRUL]HVDQ,QWHUDJHQF\$JUHHPHQWZLWK.LQJ&RXQW\
'HSDUWPHQWRI1DWXUDO5HVRXUFHVWRSURYLGHHQJLQHHULQJ
UHODWHGVHUYLFHVIRUWKH)HQVWHU/HYHH6HWEDFN3URMHFW
027,21&$55,('81$1,0286/<
'5HVROXWLRQ1R 3HOR]D6WRZH
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DSSURYLQJDQGDXWKRUL]LQJDQ,QWHUORFDO$JUHHPHQWZLWK)HGHUDO:D\
WRVKDUHWKHFRVWRIGHYHORSLQJDVRIWZDUHLQWHUIDFHWRVXSSRUWWKHQHZ
9DOOH\&RPPXQLFDWLRQV&RPSXWHU$LGHG'LVSDWFK6\VWHP
&RXQFLOPHPEHU3HOR]DPRYHGDQG&RXQFLOPHPEHU2VERUQH
VHFRQGHGWRDGRSW5HVROXWLRQ1R
7KHUHVROXWLRQDXWKRUL]HVDQ,QWHUORFDO$JUHHPHQWZLWKWKHFLWLHVRI
)HGHUDO:D\%ODFN'LDPRQGDQG'HV0RLQHVIRUGHYHORSPHQWRI
VRIWZDUHLQWHUIDFHZLWKWKHQHZ9DOOH\&RP&RPSXWHU$LGHG'LVSDWFK
6\VWHP7KH&LW\RI)HGHUDO:D\ZLOOEHWDNLQJWKHOHDGRQWKLVHIIRUW
027,21&$55,('81$1,0286/<
(5HVROXWLRQ1R 3DUWULGJH'RZG\
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
GHFODULQJFHUWDLQLWHPVRISURSHUW\DVVXUSOXVDQGDXWKRUL]LQJWKHLU
GLVSRVDO
&RXQFLOPHPEHU3DUWULGJHPRYHGDQG&RXQFLOPHPEHU+ROPDQ
VHFRQGHGWRDGRSW5HVROXWLRQ1R
Page 8 of 11
CA.A Page 46 of 281
7KHUHVROXWLRQGHFODUHVFHUWDLQLWHPVDVVXUSOXVDQGDXWKRUL]HVLWV
GLVSRVDO7KHVXUSOXVSURSHUW\LQFOXGHVD&URZQ9LFWRULDD
QXPEHURIWRROVDQXPEHURIREVROHWHRUEURNHQLWHPVIURPWKH,7
'HSDUWPHQWDQGREVROHWHZRUNVWDWLRQFRPSRQHQWV
027,21&$55,('81$1,0286/<
)5HVROXWLRQ1R 3DUWULGJH&ROHPDQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\2I$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHD6HWWOHPHQW
$JUHHPHQWEHWZHHQWKH&LW\RI$XEXUQDQG:DVWH0DQDJHPHQWRI
:DVKLQJWRQ,QFUHODWHGWRPLVVHGSLFNXSV
&RXQFLOPHPEHU3DUWULGJHPRYHGDQG&RXQFLOPHPEHU+ROPDQ
VHFRQGHGWRDGRSW5HVROXWLRQ1R
5HVROXWLRQ1RDXWKRUL]HVD6HWWOHPHQW$JUHHPHQWZLWK
:DVWH0DQDJHPHQWUHODWHGWRPLVVHGSLFNXSV7KHVHWWOHPHQW
SURYLGHVIRUDFUHGLWWRUHVLGHQWLDOFXVWRPHUVDQGDFUHGLWIRU
FRPPHUFLDOFXVWRPHUV
027,21&$55,('81$1,0286/<
*5HVROXWLRQ1R %DFNXV/HLQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\RI$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUWRH[HFXWHDQDJUHHPHQWEHWZHHQWKH&LW\RI
$XEXUQDQG.LQJ&RXQW\IRUWKHSXUFKDVHRIUHDOSURSHUW\IURP.LQJ
&RXQW\
)RUFODULILFDWLRQRIWKHVHPLQXWHV&RXQFLODFWHGRQ5HVROXWLRQ1RV
DQGLPPHGLDWHO\IROORZLQJDSSURYDORIWKH&RQVHQW
$JHQGD
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
WRDGRSW5HVROXWLRQ1R
7KHUHVROXWLRQDXWKRUL]HVD3XUFKDVHDQG6DOH$JUHHPHQWEHWZHHQ
WKH&LW\DQG0HWUR.LQJ&RXQW\IRUUHDOSURSHUW\ORFDWHGDWWKH$XEXUQ
3DUNDQG5LGHDWWK6WUHHW1:
027,21&$55,('81$1,0286/<
+5HVROXWLRQ1R %DFNXV/HLQ
$5HVROXWLRQRIWKH&LW\&RXQFLORIWKH&LW\2I$XEXUQ:DVKLQJWRQ
DXWKRUL]LQJWKH0D\RUWRH[HFXWHDQDJUHHPHQWEHWZHHQWKH&LW\RI
$XEXUQDQG2ULRQ,QGXVWULHVIRUWKHVDOHRIUHDOSURSHUW\WR2ULRQ
,QGXVWULHV
'HSXW\0D\RU%DFNXVPRYHGDQG&RXQFLOPHPEHU3DUWULGJHVHFRQGHG
Page 9 of 11
CA.A Page 47 of 281
WRDGRSW5HVROXWLRQ1R
7KHUHVROXWLRQDXWKRUL]HVD3XUFKDVHDQG6DOH$JUHHPHQWEHWZHHQ
WKH&LW\DQG2ULRQ,QGXVWULHVIRUWKHVDPHSURSHUW\GHVFULEHGLQ
5HVROXWLRQ1R
'HSXW\0D\RU%DFNXVFRPPHQGHG(FRQRPLF'HYHORSPHQW0DQDJHU
'RXJ/HLQDQG(FRQRPLF'HYHORSPHQW3ODQQHU%LOO7KRPDVIRUWKHLU
ZRUNRQWKHSURMHFW
027,21&$55,('81$1,0286/<
,;5(32576
$WWKLVWLPHWKH0D\RUDQG&LW\&RXQFLOPD\UHSRUWRQVLJQLILFDQWLWHPV
DVVRFLDWHGZLWKWKHLUDSSRLQWHGSRVLWLRQVRQIHGHUDOVWDWHUHJLRQDODQG
ORFDORUJDQL]DWLRQV
$)URPWKH&RXQFLO
'HSXW\0D\RU%DFNXVUHSRUWHGRQKHUDWWHQGDQFHDWD0XFNOHVKRRW
7ULEDOPHHWLQJWKH6HQLRU$FWLYLW\&HQWHU9ROXQWHHU$ZDUGVEDQTXHW
ZKHUHYROXQWHHUVHPHULWXV'LFN5LFKDUGVDQG*HQH&HULQRZHUH
UHFRJQL]HGWKH&LWLHVDQG6FKRROV)RUXPWKH:KLWH5LYHU9DOOH\
0XVHXP+DOORZHHQ%DOOWKH9DOOH\5HJLRQDO)LUH$XWKRULW\QHZ
HQJLQHFHUHPRQ\DW6WDWLRQWKH&RPPLWWHHRIWKH:KROHPHHWLQJ
DQGWKH$QQXDO$XEXUQ)RRG%DQN+DUYHVW%UHDNIDVW'HSXW\0D\RU
%DFNXVVSRNHRIDWUDJLFDFFLGHQWLQZKLFKDUHDUHVLGHQW-RH
%DUWNRZVNLZDVNLOOHG0U%DUWNRZVNLZDVDORQJWLPHPHPEHURIWKH
$XEXUQ1RRQ/LRQV&OXEDQGDFRPPLWWHGYROXQWHHUIRUWKH0LVV
$XEXUQ6FKRODUVKLS3URJUDP+HZLOOEHVRUHO\PLVVHGE\WKH$XEXUQ
FRPPXQLW\
&RXQFLOPHPEHU:DJQHUUHSRUWHGRQKLVDWWHQGDQFHDWWKH:DVKLQJWRQ
6WDWH8QLYHUVLW\(QJLQHHULQJDQG$UFKLWHFWXUH$GYLVRU\%RDUGPHHWLQJ
ZKHUHPHPEHUVGLVFXVVHGLQWHOOHFWXDOSURSHUW\DQGSDWHQWV
&RXQFLOPHPEHU:DJQHUDOVRFRQIHUUHGZLWKUHSUHVHQWDWLYHVRI
:DVKLQJWRQ6WDWH8QLYHUVLW\RQSURMHFWVIRUWKH,QQRYDWLRQ3DUWQHUVKLS
=RQHLQFOXGLQJDVPDUWJULGSURMHFWIRUHOHFWULFDOHQHUJ\UHOLDELOLW\DQGD
SRWHQWLDOVPDOOELRIXHOIDFLOLW\
&RXQFLOPHPEHU+ROPDQUHSRUWHGRQKLVSDUWLFLSDWLRQZLWK(FRQRPLF
'HYHORSPHQW3ODQQHU%LOO7KRPDVDQGUHSUHVHQWDWLYHVRIWKHPXVHXP
RQDUHFRUGLQJRIWKHKLVWRU\RIDYLDWLRQLQ$XEXUQ0U)UHG3RHDQG
0U'RQ5RWWOHDOVRSDUWLFLSDWHGLQWKHKLVWRU\SURMHFW
&RXQFLOPHPEHU3HOR]DUHSRUWHGRQKLVDWWHQGDQFHDWWKH6RXWK
&RXQW\$UHD7UDQVSRUWDWLRQ%RDUGPHHWLQJWKH$XEXUQ$LUSRUW
Page 10 of 11
CA.A Page 48 of 281
$GYLVRU\%RDUGPHHWLQJWKH:DWHU5HVRXUFH,QYHQWRU\$UHD :5,$
PDQDJHPHQWPHHWLQJWKH.LQJ&RXQW\:DWHU3ROOXWLRQ$EDWHPHQW
$GYLVRU\&RPPLWWHHPHHWLQJWKH&LWLHVDQG6FKRRO)RUXPWKH6LVWHU
&LW\$VVRFLDWLRQPHHWLQJWKH$XEXUQ,QWHUQDWLRQDO)DUPHUV0DUNHW
%RDUGPHHWLQJWKH9ROXQWHHU5HFRJQLWLRQOXQFKHRQWKH$XEXUQ
6\PSKRQ\2UFKHVWUDSHUIRUPDQFHWKH:KLWH5LYHU0XVHXP+DUYHVW
%DOOIXQGUDLVHUWKH$XEXUQ)RRG%DQNIXQGUDLVHUWKH&KDPEHURI
&RPPHUFHIXQGUDLVHUDQGWKH0XFNOHVKRRW7ULEDOPHHWLQJ
&RXQFLOPHPEHU2VERUQHUHSRUWHGWKDWKHDWWHQGHGVHYHUDORIWKH
HYHQWVDOUHDG\PHQWLRQHGDVZHOODVWKH3XJHW6RXQG5HJLRQDO
&RXQFLOOXQFKHRQZKHUH&RQJUHVVPDQ1RUP'LFNVZDVKRQRUHG
&RXQFLOPHPEHU3DUWULGJHUHSRUWHGRQKLVDWWHQGDQFHDWWKH5HJLRQDO
/DZ6DIHW\DQG-XVWLFH&RPPLWWHHPHHWLQJ&RXQFLOPHPEHU
3DUWULGJHDQQRXQFHGWKDWKHZLOOEHVHUYLQJDVWKH&KDLURIWKH
5HJLRQDO/DZ6DIHW\DQG-XVWLFH&RPPLWWHHEHJLQQLQJLQ'HFHPEHU
&RXQFLOPHPEHU3DUWULGJHDOVRUHSRUWHGRQKLVDWWHQGDQFHDW
WKH<0&$HYHQLQJHYHQWWKH&RDVWDO)DUPDQG5DQFK3HW2:HHQ
FRVWXPHHYHQWWKH$XEXUQ9DOOH\+XPDQH6RFLHW\%RDUGPHHWLQJ
DQGWKH$XEXUQ)RRG%DQNEUHDNIDVWIXQGUDLVHU
%)URPWKH0D\RU
0D\RU/HZLVFRPPHQWHGRQWKH&RXQFLO
VZRUNZLWKWKH$XEXUQ9DOOH\
+XPDQH6RFLHW\DPHHWLQJZLWKWKH0XFNOHVKRRW,QGLDQ7ULEHWKH
6HQLRU&HQWHU9ROXQWHHUOXQFKHRQWKH$XEXUQ6\PSKRQ\IXQGUDLVHU
WKH3XJHW6RXQG5HJLRQDO&RXQFLOPHHWLQJWKH6&25(%RDUG
PHHWLQJWKH9DOOH\&RP%RDUGPHHWLQJWKH6LVWHU&LW\$VVRFLDWLRQ
PHHWLQJWKH:KLWH5LYHU9DOOH\0XVHXP+DUYHVW%DOOWKH
$XEXUQ)RRG%DQNIXQGUDLVHUWKH3LHUFH&RXQW\&LWLHVDQG7RZQV
PHHWLQJWKH$XEXUQ$UHD&KDPEHURI&RPPHUFHIXQGUDLVHUDQGWKH
/DNHODQGYHWHUDQVSDQFDNHEUHDNIDVW
;$'-28510(17
7KHUHEHLQJQRIXUWKHUEXVLQHVVWRFRPHEHIRUHWKH&RXQFLOWKHPHHWLQJ
DGMRXUQHGDW SP
$33529('WKLVBBBBBGD\RI1RYHPEHU
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3HWHU%/HZLV0D\RU'DQLHOOH'DVNDP&LW\&OHUN
Page 11 of 11
CA.A Page 49 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
&ODLPV9RXFKHUV
'DWH
1RYHPEHU
'HSDUWPHQW
$GPLQLVWUDWLRQ
$WWDFKPHQWV
1R$WWDFKPHQWV$YDLODEOH
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODSSURYHFODLPVYRXFKHUV
%DFNJURXQG6XPPDU\
&ODLPVFKHFNQXPEHUVWKURXJKLQWKHDPRXQWDQGGDWHG
1RYHPEHU
5HYLHZHGE\&RXQFLO&RPPLWWHHV
&RXQFLOPHPEHU 3DUWULGJH 6WDII &ROHPDQ
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &$%
AUBURN * MORE THAN YOU IMAGINEDCA.B Page 50 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
3D\UROO9RXFKHUV
'DWH
1RYHPEHU
'HSDUWPHQW
$GPLQLVWUDWLRQ
$WWDFKPHQWV
1R$WWDFKPHQWV$YDLODEOH
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODSSURYHSD\UROOYRXFKHUV
%DFNJURXQG6XPPDU\
3D\UROOFKHFNQXPEHUVWKURXJKLQWKHDPRXQWRIDQG
HOHFWURQLFGHSRVLWWUDQVPLVVLRQVLQWKHDPRXQWRIIRUDJUDQGWRWDORI
IRUWKHSHULRGFRYHULQJ1RYHPEHU
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH
&RXQFLOPHPEHU 3DUWULGJH 6WDII &ROHPDQ
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &$&
AUBURN * MORE THAN YOU IMAGINEDCA.C Page 51 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
$QQXDO2Q&DOO$JUHHPHQWV
'DWH
1RYHPEHU
'HSDUWPHQW
3XEOLF:RUNV
$WWDFKPHQWV
2Q&DOO6HUYLFHVDQG&RQVXOWLQJ&RQWUDFWV
D
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODSSURYHWKH$QQXDO2Q&DOO3URIHVVLRQDO6HUYLFH$JUHHPHQWVDQG$PHQGPHQWV
IRU
%DFNJURXQG6XPPDU\
7KHDQQXDORQDOODJUHHPHQWVDUHXVHGWRVXSSOHPHQWWKH&LW\
VVWDIIUHVRXUFHVRUWRSHUIRUP
VSHFLDOL]HGVHUYLFHVQRWDYDLODEOHZLWKLQWKH&LW\+DYLQJWKHVHUHVRXUFHVDYDLODEOHSURYLGHV
WKH&LW\ZLWKWKHIOH[LELOLW\WRFRPSOHWHVPDOOWDVNVRUSURMHFWVLQDQHIILFLHQWDQGWLPHO\PDQQHU
DVWKH\DUHQHHGHGWKURXJKRXWWKH\HDU
(DFKDJUHHPHQWLVZULWWHQWRSURYLGHWKHWRWDO1RWWR([FHHGDPRXQWIRUWKH\HDUKRZHYHU
DFWXDOH[SHQGLWXUHVXQGHUHDFKDJUHHPHQWDUHDXWKRUL]HGE\WKH&LW\WKURXJKVSHFLILF7DVN
2UGHUV(DFK7DVN2UGHUSURYLGHVDVSHFLILF6FRSHRI:RUN6FKHGXOHDQG%XGJHWIRUWKH
ZRUNWREHFRPSOHWHGE\WKHFRQVXOWDQWRUVHUYLFHSURYLGHU$OOH[SHQGLWXUHVDVVRFLDWHGZLWK
WKHVHDJUHHPHQWVZLOOEHLQFRQIRUPDQFHZLWKDXWKRUL]HGEXGJHWVIRUWKHUHODWHGSURMHFWVRU
WDVNV
$WWDFKHGLVDOLVWRIWKHDJUHHPHQWVDQGWKHLUSURSRVHGDPHQGPHQWVLQFOXGLQJHDFK
DJUHHPHQWV1RWWR([FHHGDPRXQWIRU6RPHDJUHHPHQWVUHTXLUHDWLPHH[WHQVLRQRQO\
DVWKHUHLVVXIILFLHQWEDODQFHUHPDLQLQJLQWKHFXUUHQWDJUHHPHQWVWRFDUU\RXWWKHDQWLFLSDWHG
ZRUN
5HYLHZHGE\&RXQFLO&RPPLWWHHV
3XEOLF:RUNV
&RXQFLOPHPEHU :DJQHU 6WDII 'RZG\
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &$'
AUBURN * MORE THAN YOU IMAGINEDCA.D Page 52 of 281
3U
R
I
H
V
V
L
R
Q
D
O
6
H
U
Y
L
F
H
V
&
R
Q
W
U
D
F
W
1
X
P
E
H
U
)
L
U
P
1
D
P
H
$
Q
W
L
F
L
S
D
W
H
G
([
S
H
Q
G
L
W
X
U
H
V
5H
P
D
L
Q
L
Q
J
%D
O
D
Q
F
H
3URSRVHG$PHQGPHQW $PRXQW3URSRVHG7RWDO&RQWUDFW$PRXQW
*H
R
W
H
F
K
Q
L
F
D
O
(
Q
J
L
Q
H
H
U
L
Q
J
7K
H
F
R
Q
V
X
O
W
D
Q
W
S
H
U
I
R
U
P
V
J
H
R
W
H
F
K
Q
L
F
D
O
L
Q
Y
H
V
W
L
J
D
W
L
R
Q
V
D
V
Q
H
H
G
H
G
$*
&
7
H
U
U
D
F
R
Q
&
R
Q
V
X
O
W
D
Q
W
V
6L
J
Q
D
O
5
R
D
G
Z
D
\
'
H
V
L
J
Q
7K
L
V
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
H
U
I
R
U
P
G
H
Q
J
L
Q
H
H
U
L
Q
J
G
H
V
L
J
Q
U
H
O
D
W
H
G
W
R
U
R
D
G
ZD
\
L
P
S
U
R
Y
P
H
Q
W
V
DQ
G
W
U
D
I
I
L
F
V
L
J
Q
D
O
D
Q
G
O
L
J
K
W
L
Q
J
V
\
V
W
H
P
G
H
V
L
J
Q
V
$*
&
3
D
U
D
P
H
W
U
L
[
8W
L
O
L
W
\
'
H
V
L
J
Q
7K
L
V
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
H
U
I
R
U
P
H
Q
J
L
Q
H
H
U
L
Q
J
G
H
V
L
J
Q
U
H
O
D
W
H
G
W
R
X
W
L
O
L
W\
I
D
F
L
O
L
W
L
H
V
DQ
G
V\
V
W
H
P
V
$*
&
-
D
F
R
E
V
(
Q
J
L
Q
H
H
U
L
Q
J
&R
Q
V
W
U
X
F
W
L
R
Q
0
D
Q
D
J
H
P
H
Q
W
7K
L
V
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
U
R
Y
L
G
H
D
G
G
L
W
L
R
Q
D
O
V
W
D
I
I
L
Q
J
U
H
V
R
X
U
F
H
V
I
R
U
F
RQ
V
W
U
X
F
W
L
R
Q
PD
Q
D
J
H
P
H
Q
W
D
G
P
L
Q
L
V
W
U
D
W
L
R
Q
D
Q
G
L
Q
V
S
H
F
W
L
R
Q
V
H
U
Y
L
F
H
V
D
V
U
H
T
X
H
V
W
H
G
E
\
W
K
H
&
L
W
\
$*
&
+
D
U
U
L
V
D
Q
G
$
V
V
R
F
L
D
W
H
V
/D
Q
G
6
X
U
Y
H
\
7K
H
/
D
Q
G
6
X
U
Y
H
\
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
H
U
I
R
U
P
W
R
S
R
J
U
D
S
K
L
F
G
H
V
L
J
Q
F
R
Q
VW
U
X
F
W
L
R
Q
D
Q
G
ER
X
Q
G
D
U
\
V
X
U
Y
H
\
V
D
V
Q
H
F
H
V
V
D
U
\
W
R
V
X
S
S
O
H
P
H
Q
W
W
K
H
&
L
W
\
V
X
U
Y
H
\
&
U
H
Z
$*
&
3
D
U
D
P
H
W
U
L
[
:H
W
O
D
Q
G
D
Q
G
(
Q
Y
L
U
R
Q
P
H
Q
W
D
O
7K
H
Z
H
W
O
D
Q
G
D
Q
G
H
Q
Y
L
U
R
Q
P
H
Q
W
D
O
V
H
U
Y
L
F
H
V
S
U
R
Y
L
G
H
G
E
\
W
K
H
F
R
Q
V
X
O
W
D
QW
P
D
\
L
Q
F
O
X
G
H
HQ
Y
L
U
R
Q
P
H
Q
W
D
O
S
H
U
P
L
W
W
L
Q
J
Z
H
W
O
D
Q
G
G
H
O
L
Q
H
D
W
L
R
Q
Z
H
W
O
D
Q
G
P
L
W
L
J
D
W
L
RQ
G
H
Y
H
O
R
S
P
H
Q
W
D
Q
G
ZH
W
O
D
Q
G
V
\
V
W
H
P
P
R
Q
L
W
R
U
L
Q
J
$*
&
7
K
H
:
D
W
H
U
V
K
H
G
&
R
P
S
D
Q
\
/D
Q
G
V
F
D
S
H
$
U
F
K
L
W
H
F
W
X
U
H
7K
H
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
U
R
Y
L
G
H
V
H
U
Y
L
F
H
V
U
H
O
D
W
H
G
W
R
W
K
H
S
O
D
Q
Q
L
Q
J
D
Q
G
F
R
Q
V
W
U
X
F
W
L
R
Q
I
R
U
SD
U
N
I
D
F
L
O
L
W
\
S
U
R
M
H
F
W
V
D
Q
G
R
U
3
X
E
O
L
F
:
R
U
N
V
S
U
R
M
H
F
W
V
D
V
Q
H
F
H
V
V
D
U
\
$*
&
5
R
E
H
U
W
:
'
U
R
O
O
/
D
Q
G
V
F
D
S
H
$
U
F
K
L
W
H
F
W
V
7U
D
Q
V
S
R
U
W
D
W
L
R
Q
0
R
G
H
O
L
Q
J
&L
W
\
R
I
$
X
E
X
U
Q
2Q
&
D
O
O
6
H
U
Y
L
F
H
D
Q
G
&
R
Q
V
X
O
W
L
Q
J
&
R
Q
W
U
D
F
W
V
7K
H
&
L
W
\
F
X
U
U
H
Q
W
O
\
H
Q
J
D
J
H
V
L
Q
V
H
Y
H
U
D
O
2
Q
&
D
O
O
$
Q
Q
X
D
O
3
U
R
I
H
V
V
L
R
Q
DO
6
H
U
Y
L
F
H
D
Q
G
6
H
U
Y
L
F
H
&
R
Q
W
U
D
F
W
V
I
R
U
D
Y
D
U
L
H
W
\
R
I
S
X
U
S
R
V
H
V
7
K
HV
H
V
H
U
Y
L
F
H
V
D
U
H
X
V
H
G
W
R
V
X
S
S
O
H
P
H
Q
W
W
K
H
H
[
L
V
W
L
Q
J
&
L
W
\
U
H
V
R
X
U
F
H
V
ZKHQQHFHVVDU\DQGWR
LP
S
U
R
Y
H
W
K
H
&
L
W
\
V
W
L
P
H
O
L
Q
H
V
V
D
Q
G
I
O
H
[
L
E
L
O
L
W
\
I
R
U
P
H
H
W
L
Q
J
E
R
W
K
SU
R
M
H
F
W
D
Q
G
G
H
Y
H
O
R
S
P
H
Q
W
G
H
P
D
Q
G
V
7
K
H
I
R
O
O
R
Z
L
Q
J
L
V
D
G
H
V
F
U
L
S
W
L
R
Q
R
I
W
K
H
F
X
U
U
H
Q
W
V
H
U
Y
L
F
H
V
S
U
R
S
R
V
H
G
W
R
E
H
H
[
W
H
Q
G
H
G
W
K
U
R
X
J
K
DQGRQHQHZDJUHHPHQWSURSRVHG
IR
U
7UD
Q
V
S
R
U
WDWL
RQ
0RGHOL
QJ
7K
H
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
U
R
Y
L
G
H
P
R
G
H
O
L
Q
J
V
H
U
Y
L
F
H
V
U
H
O
D
W
H
G
W
R
S
O
D
Q
Q
L
Q
J
D
Q
G
G
H
V
L
J
Q
I
R
U
WK
H
&
L
W
\
V
W
U
D
Q
V
S
R
U
D
W
L
R
Q
V
\
V
W
H
P
V
W
K
D
W
P
D
\
E
H
U
H
O
D
W
H
G
W
R
E
R
W
K
F
D
SL
W
D
O
D
Q
G
GH
Y
H
O
R
S
P
H
Q
W
S
U
R
M
H
F
W
V
D
V
Z
H
O
O
D
V
J
H
Q
H
U
D
O
V
\
V
W
H
P
Q
H
H
G
V
$*
&
)
H
K
U
D
Q
G
3
H
H
U
V
13
'
(
6
6
X
S
S
R
U
W
7K
L
V
F
R
Q
V
X
O
W
D
Q
W
S
U
R
Y
L
G
H
V
V
X
S
S
R
U
W
D
V
U
H
T
X
H
V
W
H
G
E
\
W
K
H
&
L
W
\
I
R
U
L
PS
O
P
H
Q
W
D
W
L
R
Q
D
Q
G
UH
S
R
U
W
L
Q
J
U
H
T
X
L
U
H
G
E
\
W
K
H
&
L
W
\
V
1
3
'
(
6
3
K
D
V
H
3
H
U
P
L
W
$*
&
%
U
R
Z
Q
D
Q
G
&
D
O
G
Z
H
O
O
:D
W
H
U
0
R
G
H
O
L
Q
J
7K
H
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
U
R
Y
L
G
H
P
R
G
H
O
L
Q
J
V
H
U
Y
L
F
H
V
U
H
O
D
W
H
G
W
R
S
O
D
Q
Q
L
Q
J
D
Q
G
G
H
V
L
J
Q
I
R
U
WK
H
&
L
W
\
V
Z
D
W
H
U
V
\
V
W
H
P
W
K
D
W
P
D
\
E
H
U
H
O
D
W
H
G
W
R
E
R
W
K
F
D
S
L
W
D
O
D
Q
G
G
H
Y
H
O
R
S
P
H
Q
W
SU
R
M
H
F
W
V
D
V
Z
H
O
O
D
V
J
H
Q
H
U
D
O
V
\
V
W
H
P
Q
H
H
G
V
$*
&
&
D
U
R
O
O
R
(
Q
J
L
Q
H
H
U
V
6D
Q
L
W
D
U
\
6
H
Z
H
U
D
Q
G
6
W
R
U
P
:
D
W
H
U
0
R
G
H
O
L
Q
J
7K
H
F
R
Q
V
X
O
W
D
Q
W
P
D
\
S
U
R
Y
L
G
H
P
R
G
H
O
L
Q
J
V
H
U
Y
L
F
H
V
U
H
O
D
W
H
G
W
R
S
O
D
Q
Q
L
Q
J
D
Q
G
G
H
V
L
J
Q
I
R
U
WK
H
&
L
W
\
V
V
D
Q
L
W
D
U
\
V
H
Z
H
U
D
Q
G
V
W
R
U
P
G
U
D
L
Q
D
J
H
V
\
V
W
H
P
V
W
K
D
W
P
D
\
E
H
U
H
O
D
W
H
G
W
R
E
R
W
K
FD
S
L
W
D
O
D
Q
G
G
H
Y
H
O
R
S
P
H
Q
W
S
U
R
M
H
F
W
V
D
V
Z
H
O
O
D
V
J
H
Q
H
U
D
O
V
\
V
W
H
P
Q
H
H
G
V
$*
&
%
U
R
Z
Q
D
Q
G
&
D
O
G
Z
H
O
O
6H
U
Y
L
F
H
V
&
R
Q
W
U
D
F
W
1
X
P
E
H
U
)
L
U
P
1
D
P
H
([
S
H
Q
G
L
W
X
U
H
V
5H
P
D
L
Q
L
Q
J
%D
O
D
Q
F
H
3URSRVHG$PHQGPHQW $PRXQW3URSRVHG7RWDO&RQWUDFW$PRXQW
$S
S
U
D
L
V
D
O
D
Q
G
$
S
S
U
D
L
V
D
O
5
H
Y
L
H
Z
7K
H
V
H
F
R
Q
V
X
O
W
D
Q
W
V
S
U
R
Y
L
G
H
D
S
S
U
D
L
V
D
O
V
H
U
Y
L
F
H
V
I
R
U
S
U
R
S
H
U
W
\
D
Q
G
U
LJ
K
W
R
I
Z
D
\
YD
O
X
D
W
L
R
Q
I
R
U
D
O
O
G
H
S
D
U
W
P
H
Q
W
V
Z
L
W
K
L
Q
W
K
H
&
L
W
\
:
K
H
U
H
Q
H
F
H
V
V
D
U
\
W
K
H
F
R
Q
V
X
O
W
D
Q
W
V
PD
\
D
O
V
R
S
U
R
Y
L
G
H
D
S
S
U
D
L
V
D
O
U
H
Y
L
H
Z
V
H
U
Y
L
F
H
V
$*
6
$*
6
7K
H
*
U
D
Q
J
H
U
&
R
P
S
D
Q
\
$S
S
U
D
L
V
D
O
*
U
R
X
S
R
I
W
K
H
1
R
U
W
K
Z
H
V
W
:H
W
O
D
Q
G
,
Q
Y
D
V
L
Y
H
3
O
D
Q
W
6
S
H
F
L
H
V
0
D
L
Q
W
H
Q
D
Q
F
H
3H
U
I
R
U
P
V
S
U
D
\
L
Q
J
R
I
L
Q
Y
D
V
L
Y
H
S
O
D
Q
W
V
S
H
F
L
H
V
L
Q
D
Q
G
D
G
M
D
F
H
Q
W
W
R
Z
HW
O
D
Q
G
D
U
H
D
V
3R
W
H
Q
W
L
D
O
D
U
H
D
V
I
R
U
V
S
U
D
\
W
U
H
D
W
P
H
Q
W
V
L
Q
F
O
X
G
H
W
K
H
0
R
K
D
Z
N
3
O
D
V
W
L
F
V
:
H
W
O
D
Q
G
0L
W
L
J
D
W
L
R
Q
V
L
W
H
W
K
H
6
WK
6
W
5
H
F
R
Q
V
W
U
X
F
W
L
R
Q
:
H
W
O
D
Q
G
0
L
W
L
J
D
W
L
R
Q
V
L
W
H
V
W
K
H
$
6
W
U
H
H
W
1:
0
L
W
L
J
D
W
L
R
Q
V
L
W
H
W
K
H
$
X
E
X
U
Q
(
Q
Y
L
U
R
Q
P
H
Q
W
D
O
3
D
U
N
D
Q
G
W
K
H
,
Q
W
H
U
8
U
E
D
Q
7
U
D
L
O
1H
Z
1
R
U
W
K
Z
H
V
W
$
T
X
D
W
L
F
(
F
R
6
\
V
W
H
P
V
$
Q
Q
X
D
O
&
R
Q
V
X
O
D
Q
W
6
X
P
P
D
U
\
[
O
V
CA.D Page 53 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
3XEOLF:RUNV3URMHFW1R&3
'DWH
1RYHPEHU
'HSDUWPHQW
3XEOLF:RUNV
$WWDFKPHQWV
%XGJHW6WDWXV6KHHW
&3 %LG7DE
9LFLQLW\0DS
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODZDUG&RQWUDFW1RWR6FDUVHOOD%URWKHUV,QFRQWKHLUORZELGRI
SOXV:DVKLQJWRQ6WDWHVDOHVWD[RIIRUDWRWDOFRQWUDFWSULFHRI
IRU3URMHFW1R&3 :HOO7UDQVPLVVLRQ/LQH
%DFNJURXQG6XPPDU\
7KLVSURMHFWZLOOFRQVWUXFWDZDWHUWUDQVPLVVLRQOLQHIURPWKH:HOOVLWHWRWKH+RZDUG5G
&RUURVLRQ&RQWURO7UHDWPHQW)DFLOLW\ &&7) DQGFRQVWUXFWDUHSODFHPHQWVWRUP
GUDLQDJHPDLQRQ06WUHHW6(FRQVLVWLQJRIWKHIROORZLQJ
:DWHUPDLQLPSURYHPHQWVFRQVLVWVRIOLQHUIHHWRIQHZLQFKPDLQRQ06WUHHW
6RXWKHDVWIURPWKH:HOO6LWHWRWKH+RZDUG5RDG&&7)DORQJWKHURXWHGHSLFWHGRQ
WKHDWWDFKHGYLFLQLW\PDS
6WRUPGUDLQDJHLPSURYHPHQWVFRQVLVWVRIXSJUDGLQJOLQHDUIHHWRIH[LVWLQJLQFK
PDLQWRQHZLQFKPDLQDORQJ06W6(IURPWK6W6(WR$XEXUQ:D\6RXWKDQG
DGGUHVVLQJVWUHHWGUDLQDJHQHHGVDORQJWKHURXWH
&RQVWUXFWLRQRIWKLVSURMHFWLVH[SHFWHGWREHJLQLQ'HFHPEHURIDQGEHFRPSOHWH
0D\ZLWKWKH06WUHHW6(ZRUNSURFHHGLQJGXULQJWKHH[LVWLQJURDGFORVXUHRI0
6WUHHW6(IRUWKHXQGHUSDVVSURMHFW
$SURMHFWEXGJHWFRQWLQJHQF\RIUHPDLQVLQWKH:DWHU8WLOLW\)XQG
$SURMHFWEXGJHWFRQWLQJHQF\RIUHPDLQVLQWKH:DWHU8WLOLW\)XQG
5HYLHZHGE\&RXQFLO&RPPLWWHHV
3XEOLF:RUNV
&RXQFLOPHPEHU :DJQHU 6WDII 'RZG\
AUBURN * MORE THAN YOU IMAGINEDCA.E Page 54 of 281
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &$(
AUBURN * MORE THAN YOU IMAGINEDCA.E Page 55 of 281
3URMHFW1R &3 3URMHFW7LWOH
3URMHFW0DQDJHU 5REHUW/HH
,QLWLDWLRQ&RQVXOWDQW$JUHHPHQW
,QLWLDWLRQ'DWH B BBB 3HUPLVLRQWR$GYHUWLVH
$GYHUWLVHPHQW'DWH BB &RQWUDFW$ZDUG
$ZDUG'DWH BBBBBBBBBBB &KDQJH2UGHU$SSURYDO
&RQWUDFW)LQDO$FFHSWDQFH
)XQGLQJ 3ULRU<HDUV )XWXUH<HDUV 7RWDO
)XQG:DWHU
)XQG:DWHU 3:7)/
)XQG6WRUP8WLOLW\
7RWDO
$FWLYLW\3ULRU<HDUV)XWXUH<HDUV 7RWDO
'HVLJQ(QJLQHHULQJ&LW\&RVWV
(VWLPDWHG&RVW )XQGV1HHGHG
%8'*(767$7866+((7
:HOO7UDQVPLVVLRQ/LQH
'DWH 1RYHPEHU
7KH)XWXUH<HDUVFROXPQLQGLFDWHVWKHSURMHFWHGDPRXQWWREHUHTXHVWHGLQIXWXUHEXGJHWV
)XQGV%XGJHWHG )XQGV$YDLODEOH
'HVLJQ(QJLQHHULQJ&RQVXOWDQW&RVWV
&RQVWUXFWLRQ&RQWUDFW%LG
$XWKRUL]LHG&RQWLQJHQF\
&RQVWUXFWLRQ(QJLQHHULQJ&LW\&RVWV
7RWDO
3ULRU<HDUV)XWXUH<HDUV 7RWDO
)XQGV%XGJHWHG
)XQGV1HHGHG
)XQG3URMHFW&RQWLQJHQF\
)XQGV5HTXLUHG
3ULRU<HDUV)XWXUH<HDUV 7RWDO
)XQGV%XGJHWHG
)XQGV1HHGHG
)XQG3URMHFW&RQWLQJHQF\
)XQGV5HTXLUHG
LQWKH%XGJHW6WDWXV6HFWLRQVLQGLFDWHV0RQH\WKH&LW\KDVDYDLODEOH
:DWHU%XGJHW6WDWXV
6WRUP%XGJHW6WDWXV
+ ?352-?&3 :HOO7UDQVPLVVLRQ/LQH?%XGJHW?&3 7UDQV%XGJHW6WDWXV6KHHW[OVRICA.E Page 56 of 281
CA
.
E
Pa
g
e
5
7
o
f
2
8
1
CA.E Page 58 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
3XEOLF:RUNV3URMHFW1R&3
'DWH
1RYHPEHU
'HSDUWPHQW
3XEOLF:RUNV
$WWDFKPHQWV
%XGJHW6WDWXV6KHHW
)LQDO3D\([WLPDWH
9LFLQLW\0DSV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODSSURYH)LQDO3D\(VWLPDWH1RWR6PDOO:RUNV&RQWUDFW1RLQWKH
DPRXQWRIDQGDFFHSWFRQVWUXFWLRQRI3URMHFW1R&3$UWHULDO
&ROOHFWRU&UDFN6HDO3URMHFW
%DFNJURXQG6XPPDU\
7KLVSURMHFWVHDOHGFUDFNVLQWKHSDYHPHQWRQDSSUR[LPDWHO\PLOHVRIDUWHULDODQG
FROOHFWRUVWUHHWVZLWKUXEEHUL]HGDVSKDOWWRKHOSSUHVHUYHWKHH[LVWLQJSDYHPHQW7KH
DWWDFKHGPDSVVKRZWKHVSHFLILFVWUHHWVWKDWZHUHFUDFNVHDOHGDVSDUWRIWKLVSURMHFW
$SURMHFWEXGJHWFRQWLQJHQF\RIUHPDLQVLQWKH $UWHULDODQG&ROOHFWRU6WUHHW
SDYHPHQW3UHVHUYDWLRQ IXQG
5HYLHZHGE\&RXQFLO&RPPLWWHHV
3XEOLF:RUNV
&RXQFLOPHPEHU :DJQHU 6WDII 'RZG\
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU &$)
AUBURN * MORE THAN YOU IMAGINEDCA.F Page 59 of 281
3URMHFW1R &33URMHFW7LWOH
3URMHFW0DQDJHU 6HWK:LFNVWURP
,QLWLDWLRQ&RQVXOWDQW$JUHHPHQW
,QLWLDWLRQ'DWH B-XO\BBBBBBBBBB 3HUPLVVLRQWR$GYHUWLVH
6ROLFLWDWLRQ'DWH B-XO\BBBBBBBB &RQWUDFW$ZDUG
$ZDUG'DWH B$XJXVWBBBBBBBB &KDQJH2UGHU$SSURYDO
&RQWUDFW)LQDO$FFHSWDQFH
)XQGLQJ 3ULRU<HDUV )XWXUH<HDUV 7RWDO
)XQG$UWHULDO&ROOHFWRU3DYHPHQW3UHVHUYDWLRQ)XQG
7RWDO
$FWLYLW\3ULRU<HDUV)XWXUH<HDUV 7RWDO
'HVLJQ(QJLQHHULQJ
%8'*(767$7866+((7
$UWHULDO &ROOHFWRU6WUHHW&UDFN6HDO3URMHFW
'DWH 1RYHPEHU
7KH)XWXUH<HDUVFROXPQLQGLFDWHVWKHSURMHFWHGDPRXQWWREHUHTXHVWHGLQIXWXUHEXGJHWV
)XQGV%XGJHWHG )XQGV$YDLODEOH
(VWLPDWHG&RVW )XQGV1HHGHG
'HVLJQ(QJLQHHULQJ
&RQVWUXFWLRQ&RQWUDFW%LG
/LQH,WHP&KDQJHV
&RQVWUXFWLRQ(QJLQHHULQJ
7RWDO
3ULRU<HDUV )XWXUH<HDUV 7RWDO
)XQGV%XGJHWHG
)XQGV1HHGHG
)XQG3URMHFW&RQWLQJHQF\
)XQGV5HTXLUHG
LQWKH%XGJHW6WDWXV6HFWLRQVLQGLFDWHVPRQH\WKH&LW\KDVDYDLODEOH
$UWHULDO&ROOHFWRU6WUHHW%XGJHW6WDWXV
3DJHRICA.F Page 60 of 281
CA.F Page 61 of 281
CA.F Page 62 of 281
CA.F Page 63 of 281
CA.F Page 64 of 281
CA.F Page 65 of 281
CA.F Page 66 of 281
CA.F Page 67 of 281
CA.F Page 68 of 281
CA.F Page 69 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
2UGLQDQFH1R
'DWH
1RYHPEHU
'HSDUWPHQW
3ODQQLQJDQG'HYHORSPHQW
$WWDFKPHQWV
2UG
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW2UGLQDQFH1R
%DFNJURXQG6XPPDU\
7KH&LW\RI$XEXUQZLOOEHWDNLQJRYHUDQLPDOFRQWURODQGOLFHQVLQJVHUYLFHVIURP.LQJ
&RXQW\HIIHFWLYH-DQXDU\3XUVXDQWWRDQ,QWHUORFDO$JUHHPHQWSUHYLRXVO\
DXWKRUL]HGE\&RXQFLO
VDGRSWLRQRI5HVROXWLRQ1RWKH&LW\FXUUHQWO\FRQWUDFWVZLWK
.LQJ&RXQW\IRUDQLPDOFRQWUROVHUYLFHV$VUHTXLUHGE\WKDWFRQWUDFWWKH&LW\DGRSWHG
SRUWLRQVRI7LWOHRIWKH.LQJ&RXQW\&RGHUHODWHGWR$QLPDO&RQWURO%HJLQQLQJLQ
WKH&LW\LVQRORQJHUUHTXLUHGWRDGRSW.LQJ&RXQW\
VDQLPDOFRQWUROFRGH:KLOH
WKH&RXQFLOFRXOGFKRRVHWRFRQWLQXHWRDGRSWWKH&RXQW\
V&RGHVWDIIEHOLHYHVLWLV
PRUHHIILFLHQWDQGEHQHILFLDOWRUHYLVHH[LVWLQJSRUWLRQVRIWKH&LW\
V&RGHDQGDGGLQJ
ZKHUHQHFHVVDU\QHZODQJXDJH
6WDIIIURPWKH3ROLFH'HSDUWPHQW&LW\$WWRUQH\
V2IILFHDQG3ODQQLQJDQG'HYHORSPHQW
KDYHFROODERUDWHGLQWKHGHYHORSPHQWRIWKHDPHQGPHQWVWR7LWOHDGGUHVVLQJERWK
DQLPDOFRQWURODQGDQLPDOOLFHQVLQJ6WDIIUHYLHZHGWKHGUDIWUHJXODWLRQVZLWKWKH
0XQLFLSDO6HUYLFHV&RPPLWWHHDWLWV2FWREHUUHJXODUPHHWLQJ6XEVHTXHQWWRWKH
2FWREHUPHHWLQJVWDIIPDGHUHYLVLRQVWRWKHGUDIW2UGLQDQFH7KHGUDIW
2UGLQDQFHZDVUHYLHZHGE\WKH0XQLFLSDO6HUYLFHV&RPPLWWHHDWLWV1RYHPEHU
UHJXODUPHHWLQJ$WWKHFRQFOXVLRQRILWVGLVFXVVLRQWKH&RPPLWWHHYRWHGRQXQDQLPRXV
PRWLRQWRUHFRPPHQGWRWKHIXOO&LW\&RXQFLOWKHDSSURYDORI2UGLQDQFH1R
&RQVLVWHQWZLWKLWVH[HFXWHG$JUHHPHQWZLWKWKH$XEXUQ9DOOH\+XPDQH6RFLHW\ $9+6
VWDIIKDVSURYLGHG$9+6ZLWKFRSLHVRIWKHGLIIHUHQWLWHUDWLRQVRIWKHGUDIW2UGLQDQFHIRU
LWVUHYLHZDQGFRPPHQW3ULRUWRWKH1RYHPEHUWK0XQLFLSDO6HUYLFHV&RPPLWWHH
PHHWLQJ'U'RQDOG(ZGDUGV3UHVLGHQWRIWKH%RDUGIRUWKH$XEXUQ9DOOH\+XPDQH
6RFLHW\QRWLILHGVWDIIWKDW$9+6KDGQRVXEVWDQWLYHLVVXHVRUFRQFHUQVZLWK2UGLQDQFH
1R
AUBURN * MORE THAN YOU IMAGINEDORD.A Page 70 of 281
2UGLQDQFH1RLVVFKHGXOHGIRUGLVFXVVLRQDWWKH1RYHPEHU )LQDQFH
&RPPLWWHHPHHWLQJDQGIRUSRVVLEOHDFWLRQDWWKH1RYHPEHU &LW\&RXQFLO
PHHWLQJ
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH0XQLFLSDO6HUYLFHV2WKHU 3ODQQLQJDQG'HYHORSPHQW3ROLFH/HJDO
&RXQFLOPHPEHU 3HOR]D 6WDII 6Q\GHU+HLG/HH
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 25'$
AUBURN * MORE THAN YOU IMAGINEDORD.A Page 71 of 281
ORD.A Page 72 of 281
ORD.A Page 73 of 281
ORD.A Page 74 of 281
ORD.A Page 75 of 281
ORD.A Page 76 of 281
ORD.A Page 77 of 281
ORD.A Page 78 of 281
ORD.A Page 79 of 281
ORD.A Page 80 of 281
ORD.A Page 81 of 281
ORD.A Page 82 of 281
ORD.A Page 83 of 281
ORD.A Page 84 of 281
ORD.A Page 85 of 281
ORD.A Page 86 of 281
ORD.A Page 87 of 281
ORD.A Page 88 of 281
ORD.A Page 89 of 281
ORD.A Page 90 of 281
ORD.A Page 91 of 281
ORD.A Page 92 of 281
ORD.A Page 93 of 281
ORD.A Page 94 of 281
ORD.A Page 95 of 281
ORD.A Page 96 of 281
ORD.A Page 97 of 281
ORD.A Page 98 of 281
ORD.A Page 99 of 281
ORD.A Page 100 of 281
ORD.A Page 101 of 281
ORD.A Page 102 of 281
ORD.A Page 103 of 281
ORD.A Page 104 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
2UGLQDQFH1R
'DWH
1RYHPEHU
'HSDUWPHQW
)LQDQFH
$WWDFKPHQWV
PHPR
2UG
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW2UGLQDQFH1R
%DFNJURXQG6XPPDU\
3URSHUW\WD[HVPXVWEHHVWDEOLVKHGHDFK\HDUEDVHGXSRQLQIRUPDWLRQSURYLGHGE\WKH
.LQJ&RXQW\DQG3LHUFH&RXQW\'HSDUWPHQWRI$VVHVVPHQWV3URSHUW\WD[HVFDQEH
LQFUHDVHGE\XSWRXQGHU6WDWHODZQRWLQFOXGLQJSURSHUW\WD[HVRQQHZ
FRQVWUXFWLRQ$WWKLVZULWLQJWKHLQIRUPDWLRQDYDLODEOHIURP.LQJ&RXQW\LVVWLOOSUHOLPLQDU\
DVWKHYDOXDWLRQRIQHZFRQVWUXFWLRQKDVQRW\HWEHHQILQDOL]HG7RHQVXUHWKH&LW\
FDSWXUHVWKHIXOODPRXQWRISURSHUW\WD[HVWKDWLWLVHQWLWOHGWRLQFOXGLQJQHZFRQVWUXFWLRQ
2UGLQDQFH1RHVWDEOLVKHVWKHSURSHUW\WD[HVDW7KLVDPRXQWLV
EDVHGXSRQWKHSURSHUW\WD[OHY\RIDQGLQFOXGHVDLQFUHDVHDQG
SURSHUW\WD[HVRQQHZFRQVWUXFWLRQ
2QFH.LQJ&RXQW\ILQDOL]HVWKH&LW\
VDVVHVVHGYDOXDWLRQDQGQHZFRQVWUXFWLRQWKH
&RXQW\ZLOOHVWDEOLVKWKH&LW\
VDFWXDOSURSHUW\WD[OHY\UDWHDQGSURSHUW\WD[HV
6HHWKHDWWDFKHGVWDIIPHPRUDQGXPIRUDGGLWLRQDOGHWDLO
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH3XEOLF:RUNV
&RXQFLOPHPEHU 3DUWULGJH 6WDII &ROHPDQ
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 25'%
AUBURN * MORE THAN YOU IMAGINEDORD.B Page 105 of 281
Interoffice Memorandum
To: City Council
From:Shelley Coleman, Finance Director
CC: Pete Lewis, Mayor
Date: October 31, 2012
Re: 2013Property Tax Ordinance No. 6425
Attached is proposed Ordinance No. 6425, establishing the 2013Property Tax Levy. The 2013Property Tax
Levy is based upon preliminary information from King County and represents a 1% increase over the 2012
levy, as allowed under State law,and also includes estimated property taxes on new construction of
$153,000.Once King County finalizes the City’s assessed valuation (AV) withnew construction, it will
establish the City’s official 2013 levy rate and property tax. The following table summarizes the 2013
Property Tax levy:
2012 Property Tax Levy14,874,840$
Add 1% Limit Increase148,748
Add Property Tax on New Construction153,000
Total15,176,588$
2013 Property Tax Levy Calculations
Ordinance No. 6425 will be reviewed by the Council Finance Committee on November 5 (first reading) and
on November 19 (final reading) before being referred to the full Council foradoption on the same night
(November 19). Filing of the adopted ordinance will be made by December 1, as required by the County.
As of this date the County has established AVfor the City of Auburn at $6,920,526,761, which is a 3.10%
decrease from the prior year. The decrease has put the City at the top of the rate limit of $2.10 and reduces
the maximum levy allowableby$643,482 and is $341,731 less than the prior year levy.It is recommended
that the property tax levy ordinancereflect the maximum amount allowable with the 1% increase plus new
construction. As in past years, AV will not be finalized by the County until December, after the City submits
the levy ordinance. Submitting the maximum levy by the calculation, the City will be ensured to collect any
additional funds should the AV be increased.
The following table shows the levy calculations by each constraint: 1% Increase Plus New Construction and
Maximum Dollar Rate per $1,000.
ORD.B Page 106 of 281
Maximum AllowableCalculated
Levy Calculated Rate/$1,000Maximum
AssessedWith 1% IncreaseAssessedDollar RateMaximum
YearValuePlus New ConstructionValuePer $1,000Levy Allowable
20127,214,024,327$14,874,840$2.0619$2.10$15,149,451$
20136,920,526,761$15,176,588$2.1930$2.10$14,533,106$
=Highest Allowable Levy
The total 2013Property Tax Levy will be distributed to the General Fund to support general governmental
operations.
Attachments:
1.Ordinance No. 6425
ORD.B Page 107 of 281
Attachment 1
Ordinance #6425
ORD.B Page 108 of 281
ORD.B Page 109 of 281
ORD.B Page 110 of 281
ORD.B Page 111 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
2UGLQDQFH1R
'DWH
1RYHPEHU
'HSDUWPHQW
)LQDQFH
$WWDFKPHQWV
2UG
,URQ+RXVH/HWWHU
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW2UGLQDQFH1R
%DFNJURXQG6XPPDU\
2UGLQDQFH1RDXWKRUL]HVDUHGXFWLRQLQWKHDPRXQWRIJDPEOLQJWD[HVDSSOLFDEOH
IURPSHUFHQWGRZQWRSHUFHQWRIWKHJURVVDPRXQWRIUHYHQXHUHFHLYHGIURPVRFLDO
FDUGJDPHV:LWKWKHFXUUHQWHFRQRPLFOLPLWDWLRQVH[LVWLQJZLWKWKH$XEXUQ&RPPXQLW\
WKHVRFLDOFDUGJDPHDFWLYLW\KDVVXIIHUHGDUHGXFWLRQLQEXVLQHVVWKDWKDVUHGXFHGWD[
UHYHQXHVDQGKDVUHGXFHGWKHDFWLYLW\RIWKRVHEXVLQHVVHVLQYROYHGLQWKDWDFWLYLW\
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH0XQLFLSDO6HUYLFHV
&RXQFLOPHPEHU 3DUWULGJH 6WDII &ROHPDQ
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 25'&
AUBURN * MORE THAN YOU IMAGINEDORD.C Page 112 of 281
ORD.C Page 113 of 281
ORD.C Page 114 of 281
ORD.C Page 115 of 281
ORD.C Page 116 of 281
ORD.C Page 117 of 281
ORD.C Page 118 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
2UGLQDQFH1R
'DWH
2FWREHU
'HSDUWPHQW
3ODQQLQJDQG'HYHORSPHQW
$WWDFKPHQWV
([KLELW$JHQGD%LOO
2UG
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
([KLELW
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW2UGLQDQFH1R
%DFNJURXQG6XPPDU\
6HHDWWDFKHG
5HYLHZHGE\&RXQFLO&RPPLWWHHV
2WKHU +HDULQJ([DPLQHU 3ODQQLQJ %XLOGLQJ 3: )LUH
&RXQFLOPHPEHU %DFNXV 6WDII 6Q\GHU
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 25''
AUBURN * MORE THAN YOU IMAGINEDORD.D Page 119 of 281
Exhibit 1
Number of Pages7
AGENDA BILL APPROVAL FORM
Agenda Subject:Ordinance No 6436, Terrace ViewProperties, LLC
Rezone, File No. REZ012-0006
Date:November 13, 2012
Department:Planning and
Development
Attachments:See Exhibit Listat end
of staff report
Budget Impact:N/A
Administrative Recommendation:City Council to introduce and adopt Ordinance No. 6436 approving
the Terrace View PropertiesLLC rezone.
Background Summary:
OWNER:Jon Cheetham, Terrace View Properties, LLC,P.O. Box 8500, Covington, WA 98042
APPLICANT:Same as the owner
REQUEST:Change in zoning of two properties, from C1, Light Commercial to C3, Heavy
Commercial. One property is approximately 1.17 acres, and the other is approximately
1.1 acres in size.
LOCATION:The property is addressed as 5680 A Street SE, Auburn, WA.
PARCEL
NUMBERS:3121059056and 3121059010
EXISTING
LAND USE:The propertiescontain anunused modular office.
COMPPLAN
DESIGNATION:Heavy Commercial
SEPA
STATUS:ADetermination of Non-Significance(DNS)was issued onSeptember 9, 2011for the
Comprehensive Plan amendment for the subject property(SEP11-0009).No appeals
were received.An SEPA addendum was issued (SEP12-0028) on September 27, 2012
for the rezone of the property from C1, Light Commercial, to C3, Heavy Commercial. No
comments were received.
Reviewed by Council & Committees:Reviewed by Departments & Divisions:
Arts CommissionCOUNCIL COMMITTEES:Building M&O
Airport Finance Cemetery Mayor
Hearing Examiner Municipal Serv.Finance Parks
Human Services Planning & CD Fire Planning
Park Board Public Works Legal Police
Planning Comm.Other Public Works Human Resources
Information Services
Action:
Committee Approval:Yes No
Council Approval:Yes NoCall for Public Hearing ___/___/____
Referred to _________________________________Until ____/___/____
Tabled ______________________________________Until ___/___/____
Councilmember:Backus Staff:Snyder
Meeting Date:November 19, 2012 Item Number:
ORD.D Page 120 of 281
Date:October 3, 2012
Page 2of 7
The Comprehensive Plan designation, zoning designation and land uses of the surrounding properties
are:
Comprehensive Plan Zoning Land Use
Project Site Heavy Commercial C1, Light Commercial The properties contain an
unused modular office
NorthLight Commercial C1, Light CommercialThis property is developed
with a non-residential
building and gravel parking
areas.
SouthLight CommercialC1, Light CommercialRodarte Construction, a
contractor yard specializing
in water and sewer lineand
related structures
construction, highway, street
and bridge construction
EastModerate Density
Residential
R7, Seven residential units
per acre
This property is steeply
sloped and is undeveloped.
WestSingle-Family ResidentialR5, Five residential units per
acre
Immediately west of the
property is A Street SE,
which becomes East Valley
Highway immediately after
this property. The property
west of the street that is
zoned R5, is the BNSF rail
corridor.
north
ORD.D Page 121 of 281
Date:October 3, 2012
Page 3of 7
FINDINGS OF FACT:
1.Jon Cheetham, Terrace View Properties, LLCapplied for a rezone for two properties addressed
as 5680 A Street SE, Auburn, WA(Parcel numbers:3121059056and 3121059010).
2.One of the parcelsis approximately 1.17acres (50,965 square feet) in size and is vacant land.
The other parcel is approximately 1.1 acres (47,916 square feet) in size and is vacant land.
3.A Comprehensive Plan Land Use Map amendment was applied for on June 10, 2011(CPA11-
0001).The applicant requested a land use change from the “Light Commercial”to “Heavy
Commercial” designation.
4.The applicant filed an environmental checklist application that addressed the comprehensive plan
amendment. On September 9, 2011, the SEPA Responsible Official issued a Determination of
Non-Significance (DNS) for the comprehensive plan land use amendment(SEP11-0009). There
were no comments received and no appeals filed (Exhibit 8). Theapplicant submitted an
environmental checklist with the application materials. On September 27, 2012 the SEPA
north
ORD.D Page 122 of 281
Date:October 3, 2012
Page 4of 7
Responsible Official issued an addendum to the DNS to include the zone change (SEP12-0028).
No comments were received on the addendum (Exhibit 9).
5.Planning Commission held a public hearing on the comprehensive plan amendmenton
November 9, 2011. Staff recommended thePlanning Commission recommend approval to the
City Council.A motion was made to approve the proposed Comprehensive Plan Map
amendment. The motion carried 7-0(Exhibit 10).
6.City Council considered the comprehensive plan amendmentapplication during the December 5,
2011meeting.A motion was made to change the land use designation from LightCommercial to
Heavy Commercial. The motion carried 6-1(Exhibit 11).The request to change the land use
from Light Commercial to Heavy Commercial was approved by Ordinance No. 6394 (Exhibit 12).
7.Pursuant to ACC 18.68.030 and 18.68.040, all applications for a rezone shallbe reviewed by the
Planning Directorprior to the scheduling of a public hearing. After review of the application, the
Director shalldetermine which of the following two processes should occur to properly hear the
rezone:
a.If the rezone is consistent with the Comprehensive Plan, then the Hearing Examiner shall
conduct a public hearing on the rezone and make a recommendation to the City Council
pursuant to ACC 18.66.170.
This application is consistent with the comprehensive plan, as outlined below in the Conclusions.
8.Pursuant to ACC 18.68.040, notice of a public hearing shallbe given at least 10 days prior to the
public hearing and in accordance with ACC 14.07.040.Pursuantto ACC 14.07.020 notice of
application shall be given within 14 days of the determination of complete, and a 15 day comment
period shall be observed. The application was declared complete on September 20, 2012. A
combination notice of application and public hearing was issued and published in the Seattle
Times on September 27, 2012; this combined notice was mailed to the property owners within
300 feet of the subject site, and posted on the subject property meeting the notification
requirements (Exhibit 13).
9.On October 17, 2012 the City of Auburn Hearing Examiner conducted a duly notice public hearing
on the proposed Terrace View Properties, LLC Rezone.
10.The Hearing Examiner issued a written recommendation on October 29, 2012. The Hearing
Examiner recommends approval of the rezone, REZ12-0006 without conditions. No requests for
reconsideration or appeal of the Hearing Examiner’s decision were filed with the City.
11.Per ACC 18.30.010 the intent and objective of the C-3 district classification and its application is
to provide for the location of and grouping of enterprises which mayinvolve some on-premises
retail service but with outside activities and display or fabrication, assembling, and service
features. This zoneis intended to accommodate useswhich are oriented to automobiles either as
the mode or target or producing the commercial service. The usesenumerated in this
classification are considered as having common or similar performance standards in that they are
heavier in type than those usespermitted in the more restrictive commercial classifications.
12.As identifiedin ACC 18.30,020, -025 and -030,the C3Heavy Commercialzone allows a variety
of uses primarily oriented to more intensive commercial retail and service uses.
13.TheC3, Heavy Commercialzone development standards including setbacks and lot
requirements are contained in ACC 18.30.040.
ORD.D Page 123 of 281
Date:October 3, 2012
Page 5of 7
CONCLUSIONS:
ACC Chapter 18.68 provides certain criteria for approval of a rezone. The criteria aregiven below in bold
followed by staff’s evaluation of the proposal’s relation to the criteria.
1.The rezone must be consistent with the Comprehensive Plan.
Staff Evaluation
The applicant submittedfor a comprehensive plan amendment on June 10, 2011. The
comprehensive plan amendment was processed as part of the 2011annual amendments. The
comprehensive plan map amendmentwas from ‘Light Commercial’to ‘Heavy Commercial’.The
applicant submitted asubsequent application for the rezone on September 17, 2012. The intent of
the Heavy Commercialzone is identified in the findings above. The proposed rezone will change the
current zoning from C1, Light Commercial, which has an emphasis on light commercial development
to C3, Heavy Commercial which has an emphasis on heavy commercial development. On December
5, 2011the City Council approved the comprehensive plan amendment through Ordinance No. 6394
(Exhibit 12).The proposed zoning will implement several goals of the Comprehensive Plan including:
Chapter 3 ‘Land Use’ -Goal 12. Urban Redevelopment To encourage redevelopment of
underutilized areas to reduce sprawl and take full advantage of the City’s investment in existing
infrastructure.
Objective 9.3 To encourage the appropriate use of areas adjacent to heavily traveled arterials while
minimizing land use and traffic conflicts by:
1)Managing the continued commercial development of existing commercial arterials in a manner
which minimizes traffic and land use conflicts.
2)Conserving residential qualities along heavily traveled arterials which are not yet commercialized,
by restricting commercial development to types which provide an appropriate buffer.
3)Protecting existing, viable residential areas along lesser-traveled arterials, from commercial
development.
4)Concentrate population and employment growth within the eight key economic development
strategy areas within the City identified as follows:
a.Auburn Way North Corridor
b.Auburn Way South Corridor
c.Urban Center
d.Auburn Environmental Park and Green Zone
e.15th Street SW/C Street SW/West Valley Highway/Supermall
f.A Street SE Corridor
g.SE 312th Street/124th Avenue SE Corridor
h.M Street SE between Auburn Way North and Auburn Way South
Policy ED-6 Revitalize depreciated and/or obsolete commercial and industrial sites through
innovative regulations that redesign the site in accordance with modern design standards and
industrial/commercial uses.
Policy LU-62 Arterials experiencing strong pressure for commercial development, but not yet
committed to commercial uses, shall be designated for mixed use commercial and high density multi-
family uses. Development regulations should encourage the development of professional office and
similar uses and multiple family housing, with development and design standards carefully drawn to
ensure preservation of a quality living environment in adjacent neighborhoods.
ORD.D Page 124 of 281
Date:October 3, 2012
Page 6of 7
Policy LU-120 Identify areas for commercial infill development and focus street and utility systems
improvements to facilitate their development.
The proposed rezone capitalizes on existing City infrastructure: East Valley Highway as it becomes A
Street SE. A Street SEis a principal arterial road that has an average traffic volume of 26,311
vehicles per dayand good visibilityfor commercial development. The proposed rezone of the two
subject properties from C1, Light Commercial to C3, Heavy Commercial will allow the property owner
greater flexibilityin the development of these parcels, with a greater number of allowed uses. The
proposed rezone meets Goal 12, to promote urban infill development, and Policy LU-120 by
facilitating infill development on a principal arterial street. The proposed rezone concentrates
population and employment growth in one of the eight key economic development strategy areas: the
A Street SE Corridor. The proposed rezone will enable the property owner to better market the
property, supporting the objective of policy ED-6 by allowing the application of modern design
standards for commercial use. Rezoning the property from C1, Light Commercial,to C3, Heavy
Commercial,will allow the property to develop with a higher mix of uses including professional offices.
The intent of the C3 zoning district is to accommodate useswhich are oriented to automobiles either
as the mode or target or producing the commercial service.The intent of the C1 zoning district is to
accommodatecommercial designation for small to moderate scale commercial activities and should
be developed in a manner which is consistent with and attracts pedestrian-oriented activities.Due to
the long blocks and development being limited to one side of the street,A Street SE in this part of the
City of Auburn is less likely to successfully support a commercial business oriented to a leisurely
shopping experience that would attract pedestrian-oriented activities.
2.The rezone must be initiated by someone other than the City in order for the Hearing Examiner
to consider the request.
Staff Evaluation
The rezone wasinitiated by the property owner,Jon Cheetham of Terrace View Properties, LLC.
3.Any changes or modifications to a rezone request made by either the Hearing Examiner or
City Council will not result in a more intense zone than the one requested.
StaffEvaluation
Neither the Hearing Examiner nor the City Council initiated any change to this rezone as requested
by the applicant.
In addition, Washington case law has identified other criteria for rezone applications (see Parkridge v.
Seattle,89 Wn.2d.454; 573 P.2d 359 (1978) (conditions must have changed since the original zoning
was established and the proposed rezone must bear a substantial relationship to the general welfare
of the community); Ahmann-Yamane, LLC v. Tabler, 105 Wn. App. 103, 111 (2001) (proponents of a
rezone must establish that conditions have substantially changed since the original showing and that
the rezone must bear a substantial relationship to the public health, safety, morals or welfare;
provided, that a showing of a change of circumstances has occurred is not required if a rezone
implements the Comprehensive Plan.)).
a.Conditions in the area must have changed since the original zoning was established.
Staff Evaluation
The rezone proposal implementsthe comprehensive plan land use designation for the subject
property.As mentioned under the Findings of Fact, a comprehensive plan mapamendment was
processed in 2011and approved by the City Council. The proposed rezone would adjustthe
zoning of the property to correspond and beconsistent with the comprehensive plan.Showing of
ORD.D Page 125 of 281
Date:October 3, 2012
Page 7of 7
a change of circumstances has occurred is not required if a rezone implements the
Comprehensive Plan
b.The proposed rezone must bear a substantial relationship to the general welfare of the
community.
The property is currently undeveloped vacant land.The modular office shown on the aerial photo
has recently been removed.Rezoning the subject property to C3,HeavyCommercialwill match
the zoning district to thecomprehensive plan designation. In this area,A Street SE has long
unbroken blocks, and there is only opportunity for retail to occur on one side of the street because
the BNSF railroad is located on the western side of the street. The subject site is located on this
principalarterialwhere C3 is more appropriatedue to the high traffic volumes and the orientation
of the street to vehicular traffic.The intent of the C3 zoning district is to accommodate uses
which are oriented to automobiles either as the mode or target or producing the commercial
service.The intent of the C1 zoning district is to accommodatecommercial designation for small
to moderate scale commercial activities and should be developed in a manner which is consistent
with and attracts pedestrian-oriented activities.Due to the long blocks and development being
limited to one side of the street,A Street SE in this part of the City of Auburn is less likely to
successfully support a commercial business oriented to a leisurely shopping experience that
would attract pedestrian-oriented activities. The proposed rezoneis in compliance with the
adopted Comprehensive Plan which bears a substantial relationship to the general welfare of the
community.Pedestrian shopping oriented businesses are better suited along roads with
development on both sides, with shorter blocks which promote slower speeds.
HEARING EXAMINER RECOMMENDATION
After conducting a properly noticed public hearing, the Hearing Examiner issued a written
recommendation of approval on October 29, 2012 with noconditions.
Staff reserves the right to supplement the record of the case to respond to matters and information raised
subsequent to the writing of this report
EXHIBIT LIST
Exhibit 1Staff Report
Exhibit 2 Ordinance No. 6436
Exhibit3Hearing Examiner decision recommending approval of REZ12-0006, October 29, 2012
Exhibit4Completed application form (REZ12-0006)
Exhibit 5Vicinity Mapshowing the current land use
Exhibit 6Zoning map showing the current and proposed zoning
Exhibit 7Aerial Photograph
Exhibit 8Determination of Non-Significance(SEP11-0009)
Exhibit 9SEPA Addendum (SEP12-0028)
Exhibit 10Planning Commission minutesfrom November 9, 2011
Exhibit 11City Council meeting minutesfrom December 5, 2011
Exhibit 12Ordinance No. 6394Approving Comp Plan Map Amendment,December 5, 2011
Exhibit 13Combined Notice of Application and Public Hearingand affidavits of posting, mailing, and
publication
ORD.D Page 126 of 281
ORD.D Page 127 of 281
ORD.D Page 128 of 281
ORD.D Page 129 of 281
ORD.D Page 130 of 281
ORD.D Page 131 of 281
ORD.D Page 132 of 281
ORD.D Page 133 of 281
ORD.D Page 134 of 281
ORD.D Page 135 of 281
ORD.D Page 136 of 281
ORD.D Page 137 of 281
REZ12-0006 current comprehensive plan designation: Heavy Commercial
Printed Date:
Information shown is for general reference
purposes only and does not necessarily
represent exact geographic or cartographic
data as mapped. The City of Auburn makes no
warranty as to its accuracy.
Map Created by City of Auburn eGIS
9/20/2012
ORD.D Page 138 of 281
Exhibit5,No.ofPages1
REZ12-0006 current zoning: C1, Light Commercial
Printed Date:
Information shown is for general reference
purposes only and does not necessarily
represent exact geographic or cartographic
data as mapped. The City of Auburn makes no
warranty as to its accuracy.
Map Created by City of Auburn eGIS
9/20/2012
ORD.D Page 139 of 281
Exhibit6,No.ofPages2
REZ12-0006 pr oposed zoning: C3, Heavy Commercial
Printed Date:
Information shown is for general reference
purposes only and does not necessarily
represent exact geographic or cartographic
data as mapped. The City of Auburn makes no
warranty as to its accuracy.
Map Created by City of Auburn eGIS
9/20/2012
ORD.D Page 140 of 281
REZ12-0006 Aerial Photograph (Exhibit 5)
Printed Date:
Information shown is for general reference
purposes only and does not necessarily
represent exact geographic or cartographic
data as mapped. The City of Auburn makes no
warranty as to its accuracy.
Map Created by City of Auburn eGIS
10/4/2012
ORD.D Page 141 of 281
Exhibit7,No.ofPages1
ORD.D Page 142 of 281
ORD.D Page 143 of 281
ORD.D Page 144 of 281
Exhibit10,NumberofPages4
ORD.D Page 145 of 281
ORD.D Page 146 of 281
ORD.D Page 147 of 281
ORD.D Page 148 of 281
Exhibit11,NumberofPages11
ORD.D Page 149 of 281
ORD.D Page 150 of 281
ORD.D Page 151 of 281
ORD.D Page 152 of 281
ORD.D Page 153 of 281
ORD.D Page 154 of 281
ORD.D Page 155 of 281
ORD.D Page 156 of 281
ORD.D Page 157 of 281
ORD.D Page 158 of 281
ORD.D Page 159 of 281
Exhibit12
NumberofPages45
ORD.D Page 160 of 281
ORD.D Page 161 of 281
ORD.D Page 162 of 281
ORD.D Page 163 of 281
ORD.D Page 164 of 281
ORD.D Page 165 of 281
ORD.D Page 166 of 281
ORD.D Page 167 of 281
ORD.D Page 168 of 281
ORD.D Page 169 of 281
ORD.D Page 170 of 281
ORD.D Page 171 of 281
ORD.D Page 172 of 281
ORD.D Page 173 of 281
ORD.D Page 174 of 281
ORD.D Page 175 of 281
ORD.D Page 176 of 281
ORD.D Page 177 of 281
ORD.D Page 178 of 281
ORD.D Page 179 of 281
ORD.D Page 180 of 281
ORD.D Page 181 of 281
ORD.D Page 182 of 281
ORD.D Page 183 of 281
ORD.D Page 184 of 281
ORD.D Page 185 of 281
ORD.D Page 186 of 281
ORD.D Page 187 of 281
ORD.D Page 188 of 281
ORD.D Page 189 of 281
ORD.D Page 190 of 281
ORD.D Page 191 of 281
ORD.D Page 192 of 281
ORD.D Page 193 of 281
ORD.D Page 194 of 281
ORD.D Page 195 of 281
ORD.D Page 196 of 281
ORD.D Page 197 of 281
ORD.D Page 198 of 281
ORD.D Page 199 of 281
ORD.D Page 200 of 281
ORD.D Page 201 of 281
ORD.D Page 202 of 281
ORD.D Page 203 of 281
ORD.D Page 204 of 281
ORD.D Page 205 of 281
ORD.D Page 206 of 281
ORD.D Page 207 of 281
ORD.D Page 208 of 281
ORD.D Page 209 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
2UGLQDQFH1R
'DWH
1RYHPEHU
'HSDUWPHQW
)LQDQFH
$WWDFKPHQWV
2UG
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW2UGLQDQFH
%DFNJURXQG6XPPDU\
2UGLQDQFH1RDPHQGVWKH$XEXUQ&LW\&RGHSHUWDLQLQJWRVROLGZDVWHUDWHV7KH
QHZUDWHVZLOOLQFRUSRUDWHD.LQJ&RXQW\GLVSRVDOIHHLQFUHDVHLQFUHDVHG:DVWH
0DQDJHPHQWFROOHFWLRQFRVWVDQGSURYLGHGD\VRIZRUNLQJFDSLWDOLQWKH6ROLG:DVWH
)XQGE\WKHHQGRI
$VUHTXHVWHGE\WKH0XQLFLSDO6HUYLFHV&RPPLWWHHWKHQHZUDWHVDOVRUHGXFHWKH
UHVLGHQWLDOVXEVLG\WRLQDQGLQ
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH0XQLFLSDO6HUYLFHV
&RXQFLOPHPEHU 3HOR]D 6WDII &ROHPDQ
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 25'(
AUBURN * MORE THAN YOU IMAGINEDORD.E Page 210 of 281
ORD.E Page 211 of 281
ORD.E Page 212 of 281
ORD.E Page 213 of 281
ORD.E Page 214 of 281
ORD.E Page 215 of 281
ORD.E Page 216 of 281
ORD.E Page 217 of 281
ORD.E Page 218 of 281
ORD.E Page 219 of 281
ORD.E Page 220 of 281
ORD.E Page 221 of 281
ORD.E Page 222 of 281
ORD.E Page 223 of 281
ORD.E Page 224 of 281
ORD.E Page 225 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
5HVROXWLRQ1R
'DWH
1RYHPEHU
'HSDUWPHQW
3ODQQLQJDQG'HYHORSPHQW
$WWDFKPHQWV
5HV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW5HVROXWLRQ1R
%DFNJURXQG6XPPDU\
7KH&LW\RI$XEXUQZLOOEHWDNLQJRYHUDQLPDOFRQWURODQGOLFHQVLQJVHUYLFHVIURP.LQJ
&RXQW\HIIHFWLYH-DQXDU\6WDIILVUHFRPPHQGLQJWKHHVWDEOLVKPHQWDQG
LPSOHPHQWDWLRQRIDQLPDOOLFHQVHIHHVDQGODWHSD\PHQWSHQDOWLHVWRSURYLGHDUHYHQXH
VRXUFHIRUDQLPDOVKHOWHULQJVHUYLFHVUHODWLYHWRWKH&LW\
V$JUHHPHQWZLWKWKH$XEXUQ
9DOOH\+XPDQH6RFLHW\ $9+6 5HVROXWLRQ1RSURSRVHVQHZDQLPDOOLFHQVHIHHV
IRULQFOXVLRQLQWKH&LW\
V0DVWHU)HH6FKHGXOH,IDSSURYHGE\WKH&LW\&RXQFLOWKH
DFWXDOHIIHFWLYHGDWHRIWKHIHHVZRXOGQRWEHXQWLO-DQXDU\
6WDIIUHYLHZHGWKHGUDIW5HVROXWLRQZLWKWKH0XQLFLSDO6HUYLFHV&RPPLWWHHDWLWV2FWREHU
UHJXODUPHHWLQJ7KHLQLWLDOGUDIWRIWKH5HVROXWLRQSURSRVHGDQLPDOOLFHQVHIHHV
DQGODWHSHQDOW\IHHVFRQVLVWHQWZLWKWKHFXUUHQWIHHVFKDUJHGE\.LQJ&RXQW\5HJLRQDO
$QLPDO6HUYLFHVH[FHSWIRUMXYHQLOHDOWHUHGDQGXQDOWHUHGOLFHQVHV)RUWKHVHOLFHQVHV
VWDIILQLWLDOO\UHFRPPHQGHGWKDWWKH\EHLQFUHDVHGE\WRDGGUHVVFHUWDLQFRVWV
DVVRFLDWHGZLWKDQLPDOOLFHQVLQJ,QSDUWLFXODUWKH&LW\RI$XEXUQ
VFRQWUDFWZLWK3HW'DWD
,QFLQFOXGHVD SURFHVVLQJIHHIRUHDFKOLFHQVH6XEVHTXHQWWRWKH2FWREHU
PHHWLQJVWDIIPDGHUHYLVLRQVWRWKHGUDIW5HVROXWLRQWRUHGXFHWKHSURSRVHG
LQFUHDVHWRDLQFUHDVHWRPRUHFORVHO\UHIOHFWWKHDIRUHPHQWLRQHGSURFHVVLQJIHH
7KHGUDIW5HVROXWLRQZDVUHYLHZHGE\WKH0XQLFLSDO6HUYLFHV&RPPLWWHHDWLWV
1RYHPEHUUHJXODUPHHWLQJ&RQVLVWHQWZLWKLWVH[HFXWHG$JUHHPHQWZLWK
$9+6VWDIIKDVSURYLGHG$9+6ZLWKFRSLHVRIWKHGLIIHUHQWLWHUDWLRQVRIWKHGUDIW
5HVROXWLRQIRULWVUHYLHZDQGFRPPHQW
3ULRUWRWKH1RYHPEHUWK0XQLFLSDO6HUYLFHV&RPPLWWHHPHHWLQJ0D\RU/HZLVDQG
3ODQQLQJDQG'HYHORSPHQW'LUHFWRU6Q\GHUPHWZLWK$9+6%RDUGUHSUHVHQWDWLYHVWR
GLVFXVVWKHSURSRVHGIHHVLQ5HVROXWLRQ1RDQGKRZWRDGGUHVVWKHSUHYLRXVO\
PHQWLRQHGSURFHVVLQJIHH$WWKH1RYHPEHUWK0XQLFLSDO6HUYLFHV&RPPLWWHH
AUBURN * MORE THAN YOU IMAGINEDRES.A Page 226 of 281
PHHWLQJVWDIIPRGLILHGLWVUHFRPPHQGDWLRQWRPDNHDOODQLPDOOLFHQVHIHHVWKHVDPHDV
.LQJ&RXQW\
VIHHV7KLVPRGLILFDWLRQZDVPDGHWRKHOSDVVXUHDVPRRWKWUDQVLWLRQWRWKH
&LW\
VDQLPDOOLFHQVLQJSURJUDPDFRQFHUQMRLQWO\VKDUHGE\WKH&LW\DQG$9+67KH
SURSRVHGEXGJHWFXUUHQWO\SURSRVHVIRUDQLPDOVHUYLFHVDFWLYLWLHV
7KHFRVWVDVVRFLDWHGZLWKWKHSURFHVVLQJIHHZLOOEHFRYHUHGE\WKH&LW\DQGFDQEH
DGGUHVVHGWKURXJKWKHEXGJHWOLQHLWHPRQFHWKHEXGJHWLVDSSURYHG
E\WKH&LW\&RXQFLO$WWKHFRQFOXVLRQRILWVGLVFXVVLRQWKH0XQLFLSDO6HUYLFHV
&RPPLWWHHYRWHGRQXQDQLPRXVPRWLRQWRUHFRPPHQGWRWKHIXOO&LW\&RXQFLOWKH
DSSURYDORI5HVROXWLRQ1R
5HVROXWLRQ1RLVVFKHGXOHGIRUGLVFXVVLRQDWWKH1RYHPEHU )LQDQFH
&RPPLWWHHPHHWLQJDQGIRUSRVVLEOHDFWLRQDWWKH1RYHPEHU &LW\&RXQFLO
PHHWLQJ
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH0XQLFLSDO6HUYLFHV2WKHU &LW\$WWRUQH\
V2IILFH3ODQQLQJDQG'HYHORSPHQW
&RXQFLOPHPEHU 3HOR]D 6WDII 6Q\GHU
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 5(6$
AUBURN * MORE THAN YOU IMAGINEDRES.A Page 227 of 281
RES.A Page 228 of 281
RES.A Page 229 of 281
RES.A Page 230 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
5HVROXWLRQ1R
'DWH
1RYHPEHU
'HSDUWPHQW
)LQDQFH
$WWDFKPHQWV
5HV
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW5HVROXWLRQ1R
%DFNJURXQG6XPPDU\
6WDWHZLGHOHJLVODWLRQIRUDPHGLFLQHWDNHEDFNSURJUDPKDVEHHQXQVXFFHVVIXOVRWKH
.LQJ&RXQW\%RDUGRI+HDOWKLVQRZFRQVLGHULQJD.LQJ&RXQW\0HGLFLQH5HWXUQ
3URJUDP7KH.LQJ&RXQW\SURJUDPZRXOGEHIXQGHGE\SKDUPDFHXWLFDOPDQXIDFWXUHUV
5HYLHZHGE\&RXQFLO&RPPLWWHHV
)LQDQFH0XQLFLSDO6HUYLFHV
&RXQFLOPHPEHU 3HOR]D 6WDII &ROHPDQ
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 5(6%
AUBURN * MORE THAN YOU IMAGINEDRES.B Page 231 of 281
RES.B Page 232 of 281
RES.B Page 233 of 281
RES.B Page 234 of 281
$*(1'$%,//$33529$/)250
$JHQGD6XEMHFW
5HVROXWLRQ1R
'DWH
1RYHPEHU
'HSDUWPHQW
3XEOLF:RUNV
$WWDFKPHQWV
5(6ZLWKH[KLELWV
6WDII5HSRUW
9LFLQLW\0DS
%XGJHW,PSDFW
$GPLQLVWUDWLYH5HFRPPHQGDWLRQ
&LW\&RXQFLODGRSW5HVROXWLRQ1R
%DFNJURXQG6XPPDU\
$XEXUQ6FKRRO'LVWULFW1RKDVDSSOLHGWRWKH&LW\IRUYDFDWLRQRIWKHULJKWRIZD\RIQG
6WUHHW1(EHWZHHQVW6WUHHW1(DQGUG6WUHHW1(HDVWRI(6WUHHW1(DQGWKHULJKWRIZD\
RIWKH$OOH\EHWZHHQQG6WUHHW1(DQGUG6WUHHW1(HDVWRI(6WUHHW1(VKRZQRQ([KLELW
%7KHDSSOLFDQWFXUUHQWO\RZQVDOORIWKHVXUURXQGLQJSDUFHOVDQGLVSURSRVLQJWRXVHWKH
ULJKWRIZD\WRSURYLGHDFFHVVWRRQVLWHIDFLOLWLHVDVZHOODVDFFRPPRGDWHIXWXUHH[SDQVLRQRI
H[LVWLQJIDFLOLWLHV
7KHDSSOLFDWLRQKDVEHHQUHYLHZHGE\&LW\VWDIIDQGXWLOLW\SXUYH\RUVZKRKDYHDQLQWHUHVWLQ
WKLVULJKWRIZD\7KURXJKWKLVUHYLHZ&LW\6WDIIKDVGHWHUPLQHGWKDWWKHULJKWRIZD\LVQR
ORQJHUQHHGHGWRPHHWWKHQHHGVRIWKH&LW\DQGWKDWDSXEOLFKHDULQJVKRXOGEHVHWWR
GHWHUPLQHLIVDLGULJKWRIZD\PD\EHYDFDWHG
5HVROXWLRQ1RLIDGRSWHGE\&LW\&RXQFLOVHWVWKHGDWHRIWKHSXEOLFKHDULQJIRU
'HFHPEHU
2
5HYLHZHGE\&RXQFLO&RPPLWWHHV
3ODQQLQJ$QG&RPPXQLW\'HYHORSPHQW3XEOLF:RUNV
&RXQFLOPHPEHU :DJQHU 6WDII 'RZG\
0HHWLQJ'DWH 1RYHPEHU ,WHP1XPEHU 5(6&
AUBURN * MORE THAN YOU IMAGINEDRES.C Page 235 of 281
RES.C Page 236 of 281
RES.C Page 237 of 281
RES.C Page 238 of 281
RES.C Page 239 of 281
RES.C Page 240 of 281