PROPOSED FINANCING AND PROCEDURE
FOR SERVICING OF
STARBUCK DEVELOPMENT

Developer pays all development cost charges at the
applicable rate - current charges would come to about
$87,090 total.

Developer puts up letter of credit to cover full cost

of installing all required services including those which
are covered by development cost charges and to be recovered
from the City.

Preliminary estimate of letter of credit amount is
$216,000 for recoverable work plus the estimated costs
of work on the new internal road.

Developer pays cash for work to be done by City including
inspection fees. Preliminary estimate is $8,640 for
only the refundable portion.

Developer's Engineer prepares engineered drawings for all
required services for approval by City.

Developer enters into agreement with City for construction
of services and for refunds from City for work on develop-
ment cost charges program.

City rezones property.
Developer contracts construction of services, including at

least three bids on those projects which are to be
recovered from City.

Upon completion of construction, the City releases the
letter of credit except for 10% maintenance holdback.

City also commences repayment of costs of development cost
charges work as follows, all after the completion of
construction:

a) Sewer -~ City refunds full amount of the lowest
acceptable bid for the sanitary sewer
costs .
estimated amount to be refunded -
$50,000 out of Development Cost Charge
reserve funds.