+ All Categories
Home > Documents > Council Meeting Minutes 5 December 2012

Council Meeting Minutes 5 December 2012

Date post: 29-Mar-2016
Category:
Upload: city-of-greater-bendigo
View: 218 times
Download: 0 times
Share this document with a friend
Description:
Council Meeting Minutes 5 December 2012
Popular Tags:
126
0,187(6 2UGLQDU\ 0HHWLQJ RI &RXQFLO SP :HGQHVGD\ 'HFHPEHU 9(18( 5HFHSWLRQ 5RRP %HQGLJR 7RZQ +DOO +DUJUHDYHV 6WUHHW %HQGLJR 1(;7 0((7,1* :HGQHVGD\ 'HFHPEHU %HQGLJR 7RZQ +DOO &RSLHV RI WKH &LW\ RI *UHDWHU %HQGLJR &RXQFLO·V $JHQGDV 0LQXWHV FDQ EH REWDLQHG RQOLQH DW ZZZEHQGLJRYLFJRYDX
Transcript
Page 1: Council Meeting Minutes 5 December 2012

0,187(6

2UGLQDU\ 0HHWLQJ RI

&RXQFLO

SP:HGQHVGD\'HFHPEHU

9(18(5HFHSWLRQ5RRP%HQGLJR7RZQ+DOO+DUJUHDYHV6WUHHW%HQGLJR

1(;70((7,1*:HGQHVGD\'HFHPEHU%HQGLJR7RZQ+DOO

&RSLHVRIWKH&LW\RI*UHDWHU%HQGLJR&RXQFLO·V$JHQGDV 0LQXWHVFDQEHREWDLQHGRQOLQHDWZZZEHQGLJRYLFJRYDX

Page 2: Council Meeting Minutes 5 December 2012

&RXQFLOZLOOUHDOLVHLWVYLVLRQE\VHWWLQJVWUDWHJLFREMHFWLYHVVWUDWHJLHVDQGFRPPLWWLQJWRDQQXDODFWLRQVZLWKLQIRXU*RDO$UHDV

%XLOWDQG1DWXUDO(QYLURQPHQW

(FRQRPLF'HYHORSPHQW

&RPPXQLW\DQG&XOWXUH

2XU3HRSOH2XU3URFHVVHV

9LVLRQ*5($7(5%(1',*2ZLOOEHWKHEHVWSODFHWROLYHZRUNDQGYLVLWZKHUH

JURZWKDQGOLYLQJVWDQGDUGVDUHPDQDJHGWRVXVWDLQDQGHQKDQFHTXDOLW\RIOLIHDUHJLRQDOFXOWXUHRI OHDUQLQJFUHDWLYLW\DQGLQQRYDWLRQDOORZVSHRSOHWRIORXULVKLWV ULFK QDWXUDO DQG FXOWXUDO KHULWDJH LVFRQVHUYHGIRUWRGD\DQGWRPRUURZUHVLOLHQFH ORFDO VSLULW DQG LGHQWLW\ DUHSURXGO\FHOHEUDWHG

9DOXHV&RXQFLOZLOODFKLHYHLWVYLVLRQE\ZRUNLQJZLWKWKH FRPPXQLW\ DQG EXVLQHVV GLVSOD\LQJOHDGHUVKLS LQ LWV GHFLVLRQPDNLQJ RSHUDWLQJ LQDQRSHQPDQQHUDQGEDVLQJGHFLVLRQVRQVRXQGLQIRUPDWLRQ

*RDO$UHDV

Page 3: Council Meeting Minutes 5 December 2012

25',1$5<0((7,1*

:('1(6'$<'(&(0%(5

25'(52)%86,1(66

,7(0 35(&,6 3$*(

$&.12:/('*(0(172)&28175<

35$<(5

35(6(17

$32/2*,(6

6863(16,212)67$1',1*25'(56

38%/,&48(67,217,0(

5(68037,212)67$1',1*25'(56

'(&/$5$7,2162)&21)/,&72),17(5(67

&21),50$7,212)0,187(6

3(7,7,216$1'-2,17/(77(56

3HWLWLRQ5HTXHVWIRU:LGHQLQJRI5D\ZRRG(OPRUH5RDG.DPDURRND

%8,/7$1'1$785$/(19,5210(17

3ODQQLQJ6FKHPH$PHQGPHQW& 5H]RQLQJRI/DQGIURP%XVLQHVV=RQH7R6SHFLDO8VH=RQH 6FKHGXOHDW:DWWOH6WUHHW%HQGLJR &RQVLGHUDWLRQRI$XWKRULVDWLRQ5HTXHVW

6XEGLYLVLRQRI/DQGLQWR/RWV 1DSLHU6WUHHW%HQGLJR

6XEGLYLVLRQRI/DQGLQWR/RWV :RRGZDUG5RDG*ROGHQ6TXDUH

6XEGLYLVLRQRI/DQGLQWR/RWV $OOLQJKDP6WUHHW*ROGHQ6TXDUH

/RW6XEGLYLVLRQ %DNHZHOO6WUHHW1RUWK%HQGLJR

/RW6XEGLYLVLRQRI/DQG 7D\ORUV/DQH6WUDWKILHOGVD\H

$ZDUGLQJRI&RQWUDFW1R&7IRUWKH5HVHDOLQJRI9DULRXV5RDGV

Page 4: Council Meeting Minutes 5 December 2012

5HVSRQVHWR3HWLWLRQ5HTXHVWIRU,QVWDOODWLRQRI1R6WDQGLQJ6LJQDJHLQ*UHHQZRRG'ULYH.HQQLQJWRQ

(&2120,&'(9(/230(17

3URYLVLRQRI&DWHULQJ6HUYLFHVDQG)XQFWLRQ0DQDJHPHQWDW7KH&DSLWDO %HQGLJRV3HUIRUPLQJ$UWV&HQWUHDQG7KH%HQGLJR7RZQ+DOO

&20081,7<$1'&8/785(

3URSRVHG.DQJDURR)ODW$TXDWLF/HLVXUH&HQWUH&RPPXQLW\5HIHUHQFH*URXS

%HQGLJR%DQN7KHDWUH3HUIRUPDQFH6XEVLG\3URJUDP

'XGOH\+RXVH&RPPXQLW\+LUH6XEVLG\

&RPPXQLW\(QJDJHPHQW)UDPHZRUN

2853(23/(285352&(66(6

$FFRXQWV3D\DEOHDQG&RQWUDFWV$ZDUGHG8QGHU'HOHJDWLRQ

5HFRUGRI$VVHPEOLHV

&RXQFLOORU6XSSRUWDQG5HLPEXUVHPHQWRI([SHQVHV3ROLF\

&RXQFLODQG&RPPXQLW\&RPPLWWHHVIRU

3URSRVHG&RXQFLO0HHWLQJ'DWHV)RU

85*(17%86,1(66

127,&(62)027,21

&281&,//2565(32576

0$<2565(3257

&+,()(;(&87,9(2)),&(565(3257

&21),'(17,$/6(&7,215(3257

&RQWUDFWXDO0DWWHU

BBBBBBBBBBBBBBBBBBBBBBBBBBBB

&5$,*1,(0$11&+,()(;(&87,9( 2)),&(5

Page 5: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$&.12:/('*(0(172)&28175<

35$<(5

35(6(17

&U/LVD5XIIHOO&U5RG&DPSEHOO&U(OLVH&KDSPDQ&U3HWHU&R[&U5RG)\IIH&U+HOHQ/HDFK&U%DUU\/\RQV&U0DUN:HUDJRGD&U-DPHV:LOOLDPV0U&UDLJ1LHPDQQ&KLHI([HFXWLYH2IILFHU0V0DUJ$OODQ'LUHFWRU2UJDQLVDWLRQ6XSSRUW0U'DUUHQ)X]]DUG'LUHFWRU3UHVHQWDWLRQDQG$VVHWV0V3DXOLQH*RUGRQ'LUHFWRU&RPPXQLW\:HOOEHLQJ0U6WDQ/LDFRV'LUHFWRU&LW\)XWXUHV0V3UXH0DQVILHOG'LUHFWRU3ODQQLQJDQG'HYHORSPHQW0U3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV0UV$OLVRQ&DPSEHOO

$32/2*,(6

1LO

6863(16,212)67$1',1*25'(56

7KDW6WDQGLQJ2UGHUVEHVXVSHQGHG WRDOORZWKHFRQGXFWRI3XEOLF4XHVWLRQ7LPH

5(62/87,21

0RYHG&U)\IIHVHFRQGHG&U&R[

7KDW6WDQGLQJ2UGHUVEHVXVSHQGHGWRDOORZWKHFRQGXFWRI3XEOLF4XHVWLRQ7LPH

&$55,('

Page 6: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

38%/,&48(67,217,0(

5(68037,212)67$1',1*25'(56

7KDW6WDQGLQJ2UGHUVEHUHVXPHG

5(62/87,21

0RYHG&U)\IIHVHFRQGHG&U&R[

7KDW6WDQGLQJ2UGHUVEHUHVXPHG

&$55,('

Page 7: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

'(&/$5$7,2162)&21)/,&72),17(5(67

3XUVXDQW WR 6HFWLRQV DQG RI WKH /RFDO *RYHUQPHQW $FW DVDPHQGHGGLUHFWDQGLQGLUHFWFRQIOLFWRILQWHUHVWPXVWEHGHFODUHGSULRUWRGHEDWHRQVSHFLILF LWHPVZLWKLQ WKHPLQXWHVRU LQZULWLQJ WR WKH&KLHI([HFXWLYH2IILFHUEHIRUH WKH PHHWLQJ 'HFODUDWLRQ RI LQGLUHFW LQWHUHVWV PXVW DOVR LQFOXGH WKHFODVVLILFDWLRQ RI WKH LQWHUHVW LQ FLUFXPVWDQFHV ZKHUH D &RXQFLOORU KDV PDGH D'HFODUDWLRQLQZULWLQJWKHFODVVLILFDWLRQRIWKHLQWHUHVWPXVWVWLOOEHGHFODUHGDWWKHPHHWLQJLH

D GLUHFWILQDQFLDOLQWHUHVWE LQGLUHFWLQWHUHVWE\FORVHDVVRFLDWLRQF LQGLUHFWLQWHUHVWWKDWLVDQLQGLUHFWILQDQFLDOLQWHUHVWG LQGLUHFWLQWHUHVWEHFDXVHRIFRQIOLFWLQJGXWLHVH LQGLUHFWLQWHUHVWEHFDXVHRIUHFHLSWRIDQ DSSOLFDEOHJLIWI LQGLUHFWLQWHUHVWDVDFRQVHTXHQFHRIEHFRPLQJDQLQWHUHVWHGSDUW\J LQGLUHFWLQWHUHVWDVDUHVXOWRILPSDFWRQUHVLGHQWLDODPHQLW\K FRQIOLFWLQJSHUVRQDOLQWHUHVW

$&RXQFLOORUZKRKDVGHFODUHGDFRQIOLFWRI LQWHUHVWPXVW OHDYH WKHPHHWLQJDQGUHPDLQRXWVLGHWKHURRPZKLOHWKHPDWWHULVEHLQJFRQVLGHUHGRUDQ\YRWHLVWDNHQ

&RXQFLOORUVDUHDOVRHQFRXUDJHG WRGHFODUHFLUFXPVWDQFHVZKHUH WKHUHPD\EHDSHUFHLYHGFRQIOLFWRILQWHUHVW

&U &R[ GHFODUHG D FRQIOLFW RI LQWHUHVW LQGLUHFW ILQDQFLDO LQWHUHVW LQ WKH 6HFWLRQ &RQILGHQWLDO 5HSRUW 1R &RQWUDFWXDO 0DWWHU DV KH LV D SDUWWLPH HPSOR\HH RI:RUNVSDFH$XVWUDOLD

&U /\RQV GHFODUHG D FRQIOLFW RI LQWHUHVW E\ FORVH DVVRFLDWLRQ LQ WKH %XLOW DQG1DWXUDO(QYLURQPHQW 5HSRUW 1R 6XEGLYLVLRQ RI /DQG LQWR /RWV :RRGZDUG5RDG*ROGHQ6TXDUHDVDUHODWLYHLVLQYROYHGZLWK WKHGHYHORSPHQW

0U 6WDQ /LDFRV 'LUHFWRU &LW\ )XWXUHV GHFODUHG D FRQIOLFW RI LQWHUHVW E\ FORVHDVVRFLDWLRQ LQ WKH %XLOW DQG 1DWXUDO (QYLURQPHQW 5HSRUW 1R 3ODQQLQJ 6FKHPH$PHQGPHQW & 5H]RQLQJ RI /DQG IURP %XVLQHVV =RQH WR 6SHFLDO 8VH =RQH 6FKHGXOHDW:DWWOH6WUHHW%HQGLJR &RQVLGHUDWLRQRI$XWKRULVDWLRQ5HTXHVWDVKHLVRQWKH%RDUGRI*LUWRQ*UDPPDU

Page 8: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&21),50$7,212)0,187(6

0LQXWHVRI WKH 6SHFLDO0HHWLQJRI&RXQFLOKHOGRQ0RQGD\1RYHPEHUDQG WKH2UGLQDU\0HHWLQJRI&RXQFLOKHOGRQ:HGQHVGD\1RYHPEHU

7KHIROORZLQJLWHPVZHUHFRQVLGHUHGDWWKH6SHFLDO0HHWLQJRI&RXQFLOKHOGRQ0RQGD\1RYHPEHUDWSP

,QVWDOODWLRQRI&RXQFLOORUVIRU(OHFWLRQRI0D\RUIRU&RQJUDWXODWLRQVWR1HZO\(OHFWHG0D\RU5HVSRQVHE\0D\RUIRU&RQVLGHUDWLRQRI0D\RUDODQG&RXQFLOORU$OORZDQFHV

7KH IROORZLQJ LWHPV ZHUH FRQVLGHUHG DW WKH 2UGLQDU\ &RXQFLO PHHWLQJ KHOG RQ:HGQHVGD\1RYHPEHUDWSP

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

7KHXQFRQILUPHGPLQXWHVKDYHDOVREHHQSRVWHGRQWKH&LW\RI*UHDWHU%HQGLJRZHEVLWHSHQGLQJFRQILUPDWLRQDWWKLVPHHWLQJ

Page 9: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(&200(1'$7,21

7KDWWKH0LQXWHVRIWKH6SHFLDO0HHWLQJRI&RXQFLOKHOGRQ0RQGD\1RYHPEHUDQG WKH 2UGLQDU\ 0HHWLQJ RI &RXQFLO KHOG RQ :HGQHVGD\ 1RYHPEHU DVFLUFXODWHGEHWDNHQDVUHDGDQGFRQILUPHG

5(62/87,21

0RYHG&U&DPSEHOOVHFRQGHG&U:LOOLDPV

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 10: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3(7,7,216$1'-2,17/(77(56

3(7,7,21 5(48(67 )25 :,'(1,1* 2) 5$<:22'(/025( 52$'.$0$522.$

3HWLWLRQVDQGMRLQWOHWWHUVZLWKWHQRUPRUHVLJQDWXUHVDUHLQFOXGHGLQWKHDJHQGDRUWDEOHG DW WKH PHHWLQJ XQOHVV WKHUH LV D VHSDUDWH OHJDO SURFHVV IRU FRQVLGHULQJ WKHSHWLWLRQ RU MRLQW OHWWHU DV WKHUH LV IRU SODQQLQJ VXEPLVVLRQV RU VXEPLVVLRQV IROORZLQJSXEOLFQRWLFHV6HFWLRQ/*$@

$ SHWLWLRQ KDV EHHQ UHFHLYHG IURP FRQFHUQHG UHVLGHQWV LQ WKH 5D\ZRRG(OPRUH 5RDGDUHD.DPDURRNDDVRXWOLQHGEHORZ

$IWHU GHFDGHV RI UHTXHVW WR 9LF5RDGV WR ZLGHQ WKH NPV PLGGOH VHFWLRQWKURXJK .DPDURRND RI WKH 5D\ZRRG(OPRUH 5RDG WKH UHFHQW WUDJLF ORVV RI D \HDU ROG PXP RQ LQ D KHDG RQ DFFLGHQW KDV KLJKOLJKWHG WKH QHHG IRUDFWLRQ

6LJQDWXUHV

5(&200(1'$7,21

7KDWWKHSHWLWLRQEHUHFHLYHGDQGWKDW&RXQFLOZULWHWR9LF5RDGVVWURQJO\DGYRFDWLQJIRUWKHXSJUDGHRIWKH5D\ZRRG(OPRUH5RDGDW.DPDURRNDDVDPDWWHURIXUJHQF\

5(62/87,21

0RYHG&U:LOOLDPV6HFRQGHG&U)\IIH

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 11: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

%8,/7$1'1$785$/(19,5210(17

3/$11,1* 6&+(0( $0(1'0(17 & 5(=21,1* 2) /$1' )520%86,1(66 =21(7263(&,$/86(=21( 6&+('8/($7 :$77/( 675((7 %(1',*2 &216,'(5$7,21 2)$87+25,6$7,215(48(67

'RFXPHQW,QIRUPDWLRQ

$XWKRU (PLOLH-RKQVWRQ7RZQ3ODQQHU

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJDQG 'HYHORSPHQW'LUHFWRU

6XPPDU\3XUSRVH

7KLVUHSRUWUHFRPPHQGV&RXQFLOUHTXHVWWKH0LQLVWHUIRU3ODQQLQJWR$XWKRULVH&RXQFLOWR SUHSDUH DQG H[KLELW DQ DPHQGPHQW WR WKH *UHDWHU %HQGLJR 3ODQQLQJ 6FKHPH WRUH]RQHWKH ODQGDW:DWWOH6WUHHW%HQGLJRIURP%XVLQHVV=RQHWR6SHFLDO8VH=RQHWRDOORZIRUHGXFDWLRQDOIXQFWLRQV*LUWRQ*UDPPDU6FKRRORQWKHODQG

3ROLF\&RQWH[W

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ ± XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW6WUDWHJLF2EMHFWLYHV

9DOXHFRQVHUYHDQGHQKDQFHWKHULFKEXLOWDQGQDWXUDOKHULWDJH$FKLHYHKLJKTXDOLW\RXWFRPHVLQSODQQLQJDQGSROLF\DFWLYLWLHV(QFRXUDJHDQGIRVWHUKLJKTXDOLW\GHVLJQWRFUHDWHHQYLURQPHQWVWKDWVXSSRUWSXEOLFZHOOEHLQJDQGHFRQRPLFVXFFHVV

%DFNJURXQG,QIRUPDWLRQ

7KHNH\VWHSVLQWKHDPHQGPHQWSURFHVVDUHVXPPDULVHGEHORZ

Page 12: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 13: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5HSRUW

7KH3ODQQLQJDQG(QYLURQPHQW$FW DOORZVIRUD3ODQQLQJ6FKHPH$PHQGPHQW WREH LQLWLDWHG E\ D PXQLFLSDO &RXQFLO RU D &RXQFLO FDQ UHVSRQG WR D UHTXHVW IRU DQDPHQGPHQWE\DQ\SHUVRQRUERG\

:KHQ UHTXHVWLQJDXWKRULVDWLRQ IURP WKH0LQLVWHU IRU 3ODQQLQJ&RXQFLOPXVW VXEPLW DQ([SODQDWRU\5HSRUW ZKLFK GLVFXVVHV WKH SXUSRVH HIIHFWV DQG VWUDWHJLF MXVWLILFDWLRQ IRUWKHDPHQGPHQW.H\LVVXHVLGHQWLILHGLQWKH([SODQDWRU\5HSRUWDUHVXPPDULVHGEHORZ

/DQG$IIHFWHGE\WKH$PHQGPHQW

7KHVLWHLVPDGHXSRIWZRDGMDFHQWEORFNVRIODQGDWDQG:DWWOH6WUHHW%HQGLJR7KHRYHUDOOVLWH LV LUUHJXODU LQVKDSHDQGKDVD IURQWDJHRIDSSUR[LPDWHO\PRQ WKHZHVWHUQVLGHRI:DWWOH6WUHHW7KHEORFNRIODQGLPPHGLDWHO\VRXWKRIWKHVXEMHFWVLWH LVFXUUHQWO\ ]RQHG 6SHFLDO 8VH =RQH DQG LV XVHG E\ *LUWRQ *UDPPDU 6FKRRO 0RVWRWKHUODQGLQWKHYLFLQLW\LV%XVLQHVV=RQH7KHODQGFXUUHQWO\FRQWDLQVDEXLOGLQJWKDWLVXVHG IRU RIILFH DGPLQLVWUDWLRQ LQDVVRFLDWLRQZLWK WKH VFKRRO 7KHEXLOGLQJ DW :DWWOH6WUHHWZDVGHPROLVKHGHDUOLHULQ

2YHUDOOWKHVLWHLVDSSUR[LPDWHO\VTPLQDUHD

:KDWWKH$PHQGPHQWGRHV

7KLVDPHQGPHQWZLOOUH]RQHODQGDWDQG:DWWOH6WUHHW%HQGLJRIURP%XVLQHVV=RQHWR6SHFLDO8VH=RQHLQRUGHUIRU*LUWRQ*UDPPDU6FKRROWRRSHUDWHHGXFDWLRQDOIDFLOLWLHVRQVLWHLQFRQMXQFWLRQZLWKWKHLUPDVWHUSODQ

Page 14: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

:K\WKH$PHQGPHQWLV5HTXLUHG

7KLV DPHQGPHQW KDV LWV RULJLQV LQ D PDVWHU SODQ DQG RSSRUWXQLWLHV SDSHU WKDW ZDVGHYHORSHG E\ %*$ $UFKLWHFWV QRZ( $UFKLWHFWXUH LQ $SULO WR JXLGH WKH IXWXUHGHYHORSPHQWDQGJURZWKRI WKHVFKRRO7KLVPDVWHUSODQKDVEHHQUHFHQWO\XSGDWHG,WDFNQRZOHGJHG WKDW WKH3UHS VFKRROZLOO FRQWLQXH WR JURZ WR D WRWDO VWXGHQW OHYHO RIEHWZHHQ DQG VWXGHQWV DQG KDYH WZRPDLQ FDPSXVHV ± 0DFNHQ]LH6WUHHWMXQLRU DQG :DWWOH9LQH 6WUHHW VHQLRU 7KH SODQ LGHQWLILHV WKH ODQG VXEMHFW WR WKHDPHQGPHQWIRUORQJWHUPH[SDQVLRQRSSRUWXQLWLHV

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

Page 15: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KLVDPHQGPHQWZLOOIDFLOLWDWHDQGVXSSRUWWKHFRQWLQXHGH[SDQVLRQDQGGHYHORSPHQWRI*LUWRQ*UDPPDU6FKRRO DQGLVFRQVLVWHQWZLWKWKHVFKRRO¶VPDVWHUSODQ

*LUWRQ*UDPPDU¶VRULJLQDO VFKRRO FDPSXV NQRZQDV WKH0DFNHQ]LH6WUHHW FDPSXV LVORFDWHGRQ WKHQRUWKVLGHRI+LJK6WUHHW1RDQG:DWWOH6WUHHWDUH FXUUHQWO\]RQHG%XVLQHVV=RQHZKLFKSURKLELWVHGXFDWLRQFHQWUHIXQFWLRQVIRUSULPDU\DQGVHFRQGDU\VFKRROV7KH6SHFLDO8VH=RQHLVWKHDSSURSULDWH]RQHIRUWKHODQGRZQHGDQGRFFXSLHGE\ D SULYDWH VFKRRO VXFK DV *LUWRQ *UDPPDU DQG LV FRQVLVWHQW ZLWK WKH SURSRVHG6FKHGXOHWRWKH2YHUOD\ ZKLFKDSSOLHVVSHFLILFDOO\WRRWKHUODQGRZQHGDQGRSHUDWHGDVDVFKRROE\*LUWRQ*UDPPDU7KLVLQFOXGHVODQGDGMDFHQWWRWKHVXEMHFWVLWH

6RFLDO (FRQRPLFDQG(QYLURQPHQWDO(IIHFWV

(QYLURQPHQW)ROORZLQJDFRQWDPLQDWLRQDVVHVVPHQWLWLVFRQVLGHUHGWKDW WKHHQYLURQPHQWDOFRQGLWLRQRI WKH ODQGLVDFFHSWDEOHIRU WKHSURSRVHGVHQVLWLYHXVH VXEMHFWWRWKHSUHSDUDWLRQDQGLPSOHPHQWDWLRQ RI D 6RLO 0DQDJHPHQW 3ODQ DV SDUW RI WKH SODQQLQJ SHUPLW SURFHVV6FKHGXOHRIWKH6SHFLDO8VH=RQHZKLFKLVWKHSURSRVHGFRQWURO IRUWKLVVLWH UHTXLUHVWKHVXEPLVVLRQRID6RLO0DQDJHPHQW3ODQSULRUWRWKHXVHRIWKHODQGIRUDQHGXFDWLRQFHQWUH

6RFLDODQG(FRQRPLF7KHVXUURXQGLQJDUHDLV]RQHGIRUFRPPHUFLDOGHYHORSPHQW%XVLQHVV=RQHDQGWKHLQWURGXFWLRQ RI HGXFDWLRQDO XVHV ZLOO QRW DIIHFW WKH DPHQLW\ RI WKH DUHD DQG ZLOO EHFRQVLVWHQW ZLWK WKH VFKRRO XVHV RQ RWKHU DGMDFHQW VLWHV 2QH RI WKH REMHFWLYHV RI WKH68=LVWRHQVXUHWKDWGHYHORSPHQWUHVSHFWVDGMRLQLQJUHVLGHQWLDOXVHV

Page 16: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KLV DPHQGPHQWZLOO DFFRPPRGDWH WKH H[SDQVLRQ RI*LUWRQ*UDPPDU6FKRRO DQGZLOODOVR IDFLOLWDWH WKH SURYLVLRQ DQG H[SDQVLRQ RI KLJK TXDOLW\ HGXFDWLRQDO IDFLOLWLHV IRU WKHVFKRROFRPPXQLW\

6WUDWHJLF-XVWLILFDWLRQ

67$7(3/$11,1*32/,&<)5$0(:25.

&ODXVH 5HJLRQDO VHWWOHPHQW QHWZRUNV LGHQWLILHV %HQGLJR DV RQH RI IRXU PDMRUUHJLRQDOFLWLHVLQ9LFWRULDZKHUHLWLVH[SHFWHGSULYDWHHGXFDWLRQDOIDFLOLWLHVZLOOHVWDEOLVK7KH ODQG LV VLWXDWHG DGMDFHQW WR DQ DFWLYLW\ FHQWUH DQG SURYLGHV IRU WKH LQWHJUDWLRQ RIHGXFDWLRQDOIDFLOLWLHVDWLWVSHULSKHU\

&ODXVH8VHRIFRQWDPLQDWHGDQGSRWHQWLDOO\FRQWDPLQDWHGODQG VHHNVWRHQVXUHWKDWSRWHQWLDOO\FRQWDPLQDWHGODQGLVVXLWDEOHIRULWVLQWHQGHGIXWXUHXVHDQGGHYHORSPHQWDQG WKDW FRQWDPLQDWHG ODQG LV XVHG VDIHO\ 7KH SURSRQHQW ZLOO KDYH WR VXEPLW D 6RLO0DQDJHPHQW 3ODQ DV SDUW RI WKH EXLOGLQJV DQG ZRUNV DSSOLFDWLRQ WR &RXQFLO¶VVDWLVIDFWLRQ

7KH DPHQGPHQW DOVR UHVSRQGV ZHOO WR FODXVH (GXFDWLRQ )DFLOLWLHV DV WKHSULPDU\DQGVHFRQGDU\VFKRROXVHVDUH ORFDWHGDGMDFHQW WRDQDFWLYLW\FHQWUH%HQGLJR&%'WKDWSURYLGHVJRRGSXEOLF WUDQVSRUWDQGZDONLQJDFFHVV WR LQQHUUHVLGHQWLDODUHDVDQGRWKHUFRPPXQLW\DQGUHFUHDWLRQDOIDFLOLWLHV

081,&,3$/675$7(*,&67$7(0(17

2QHRIWKHREMHFWLYHVRI&ODXVH,QIUDVWUXFWXUH LVWRHQFRXUDJHHGXFDWLRQDOXVHVLQDQGDURXQG WKH%HQGLJR&%'7KH VWUDWHJ\HQFRXUDJHV WKHGHYHORSPHQWRIDGGLWLRQDOHGXFDWLRQDOIDFLOLWLHVLQDQGDURXQGWKH%HQGLJR&%'$QGWKHLPSOHPHQWDWLRQE\ZKLFKWRDFKLHYHWKLVLVOLVWHGDVDSSO\LQJWKH6SHFLDO8VH=RQHWRSULYDWHHGXFDWLRQ,WLVYHU\FOHDUWKDWWKH066LVVXSSRUWLYHRIWKLVNLQGRIDPHQGPHQWJLYHQWKHODQGLVORFDWHGZHOOZLWKLQWKHSUR[LPLW\RIWKH&LW\¶V&%'

&RQVXOWDWLRQ

&RPPHQWV ZHUH VRXJKW IURP YDULRXV LQWHUQDO GHSDUWPHQWV ZLWKLQ WKH &LW\ RI *UHDWHU%HQGLJR1RLVVXHVZHUHUDLVHG

7KH $PHQGPHQW GRFXPHQWV ZLOO EH SXEOLFO\ H[KLELWHG IRU D PLQLPXP RI D PRQWK DVUHTXLUHG XQGHU WKH3ODQQLQJ DQG (QYLURQPHQW $FW 7KH&LW\PXVW JLYH QRWLFH RI$PHQGPHQWV WR DOO RZQHUV DQG RFFXSLHUV ZKR PD\ EH PDWHULDOO\ DIIHFWHG E\ DQ$PHQGPHQW WRJHWKHUZLWKSUHVFULEHG0LQLVWHUVDQGSXEOLFDXWKRULWLHV7KH&)$ZLOOEHQRWLILHG RI WKH $PHQGPHQW 7KH$PHQGPHQWZLOO DOVR EH H[KLELWHG LQ WKH*RYHUQPHQW*D]HWWHDQGWKH%HQGLJR$GYHUWLVHUQHZVSDSHU

&RQFOXVLRQ

7KHDPHQGPHQWLVWRUH]RQHODQGDWDQG:DWWOH6WUHHW LQ%HQGLJRIURP%XVLQHVV=RQHWR6SHFLDO8VH=RQHWRDOORZIRU*LUWRQ*UDPPDU6FKRROWRH[SDQGLWVHGXFDWLRQDOIDFLOLWLHV7KHDPHQGPHQW LVFRQVLGHUHG WREHFRQVLVWHQWZLWK WKH3ODQQLQJ6FKHPH LQSDUWLFXODUWKH066 JXLGHOLQHVDURXQGHGXFDWLRQ

Page 17: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

,W LV UHFRPPHQGHG WKDW &RXQFLO VHHN DXWKRULVDWLRQ IURP WKH 0LQLVWHU IRU 3ODQQLQJ WRSUHSDUHDQGH[KLELWWKH$PHQGPHQW

2SWLRQV

&RXQFLOKDVWKHRSWLRQRIVXSSRUWLQJ WKH DPHQGPHQW SURSRVDO DQG PDNLQJ D UHTXHVW WR WKH 0LQLVWHU IRU3ODQQLQJWRDXWKRULVHSUHSDUDWLRQDQGH[KLELWLRQRIWKHDPHQGPHQWUHIXVLQJWKHUHTXHVWWRSUHSDUHDQDPHQGPHQW8QGHUWKH3ODQQLQJDQG(QYLURQPHQW$FWWKHUHLVQRULJKWRIUHYLHZRIDFRXQFLOVGHFLVLRQQRWWRVXSSRUWSUHSDUDWLRQRIDQDPHQGPHQWUHTXHVWLQJ3DQHOV9LFWRULDWRSUHVHWKHDULQJGDWHV7KLVH[SHGLWHVWKHDPHQGPHQWWLPHIUDPHSURFHVVLIVXEPLVVLRQVDUHUHFHLYHG

5HVRXUFH,PSOLFDWLRQV

2IILFHUWLPHZLOOEHUHTXLUHGWRSUHSDUHWKH$PHQGPHQWGRFXPHQWDWLRQIRUDXWKRULVDWLRQH[KLELWLRQPDQDJHWKHH[KLELWLRQSURFHVVDQGOLDLVHZLWKWKH0LQLVWHUIRU3ODQQLQJ 7KLVDPHQGPHQWZLOOQRWFDXVHDVLJQLILFDQWLQFUHDVHLQSHUPLWDFWLYLW\

7KHSURSRQHQWKDVDJUHHGWRSD\ IRU WKHVWDWXWRU\IHHVDQGH[WUDFRVWV LQFXUUHGE\WKH&LW\DVSHUWKH3ROLF\IRUSULYDWH3ODQQLQJ6FKHPH$PHQGPHQWVDGRSWHGE\&RXQFLO

$WWDFKPHQWV

([SODQDWRU\5HSRUW

5(&200(1'$7,21

7KDWWKH*UHDWHU%HQGLJR&LW\&RXQFLOUHVROYHWR

5HTXHVWWKH0LQLVWHUIRU3ODQQLQJWRDXWKRULVH&RXQFLOWRSUHSDUH$PHQGPHQW&WRWKH*UHDWHU%HQGLJR3ODQQLQJ6FKHPH

:KHQDXWKRULVHGE\WKH0LQLVWHUVHQGUHTXHVWWR3DQHOV9LFWRULDWRSUHVHWKHDULQJGDWHVIRUWKH$PHQGPHQW

:KHQ$XWKRULVHGE\WKH0LQLVWHUH[KLELW$PHQGPHQW& WRWKH*UHDWHU%HQGLJR3ODQQLQJ6FKHPHJLYLQJQRWLILFDWLRQDVUHTXLUHGIRUWKHPLQLPXPVWDWXWRU\H[KLELWLRQSHULRGRIRQHPRQWK

5HTXHVW WKDW WKH0LQLVWHU IRU 3ODQQLQJ DXWKRULVH*UHDWHU %HQGLJR&LW\&RXQFLO WRDSSURYH $PHQGPHQW & RQFH LW KDV EHHQ &HUWLILHG E\ WKH 6HFUHWDU\ RI WKH'HSDUWPHQWRI3ODQQLQJDQG&RPPXQLW\'HYHORSPHQW

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U&DPSEHOO

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 18: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

68%',9,6,212)/$1',172/276 1$3,(5675((7%(1',*2

'RFXPHQW,QIRUPDWLRQ

$XWKRU 6WHSKHQ:DLQZULJKW&RRUGLQDWRU 6XEGLYLVLRQV

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJ'HYHORSPHQW'LUHFWRU

6XPPDU\3XUSRVH

7KLV UHSRUWFRQFHUQVDSODQQLQJSHUPLW DSSOLFDWLRQ WRVXEGLYLGH WZRH[LVWLQJDOORWPHQWVLQWRVL[QHZYDFDQW ORWVVXLWDEOH IRUKRXVLQJ(DFKH[LVWLQJDOORWPHQWFRQWDLQVDSHULRGKRXVH ERWK RI ZKLFK DUH SURSRVHG WR EH GHPROLVKHG DV SDUW RI WKH VXEGLYLVLRQ 7KHKRXVHVDUHQWFXUUHQWO\FRYHUHGE\D+HULWDJH2YHUOD\

2QH RI WKH H[LVWLQJ KRXVHV NQRZQ DV 1R 1DSLHU 6WUHHW KDV SDUWLFXODU KHULWDJHVLJQLILFDQFHDQGDVDUHVXOW LVZRUWK\RIFRQVHUYDWLRQ7KLVKRXVHFRXOGEHUHWDLQHGE\FRQVROLGDWLQJ/RWVDQGRQWKHSURSRVHGSODQRIVXEGLYLVLRQ

7KLVUHSRUWDVVHVVHVWKHPHULWVRIWKHSURSRVHGVXEGLYLVLRQZLWKSDUWLFXODUUHJDUGWRWKHVLWHVKHULWDJHYDOXHV7KHUHSRUWFRQFOXGHVWKDWWKHGHPROLWLRQRI1R1DSLHU6WUHHWZKLFKZLOOEHDQHFHVVDU\FRQVHTXHQFHRIWKHSURSRVHGVXEGLYLVLRQLVXQDFFHSWDEOHIRUKHULWDJHUHDVRQV2QWKLVEDVLVLWLVUHFRPPHQGHGWKDWDSHUPLWVKRXOGQRWEHJUDQWHG

3ROLF\&RQWH[W

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ± XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW6WUDWHJLF2EMHFWLYHV

9DOXHFRQVHUYHDQGHQKDQFHWKHULFKEXLOWDQGQDWXUDOKHULWDJH$FKLHYHKLJKTXDOLW\RXWFRPHVLQSODQQLQJDQGSROLF\DFWLYLWLHV(QFRXUDJHDQGIRVWHUKLJKTXDOLW\GHVLJQWRFUHDWHHQYLURQPHQWVWKDWVXSSRUWSXEOLFZHOOEHLQJDQGHFRQRPLFVXFFHVV

5HSRUW

$SSOLFDWLRQ1R '6

$SSOLFDWLRQ'DWH -XO\

$SSOLFDQW *HRII6KDZ$VVRFLDWHV3W\/WG

/DQG 1DSLHU6WUHHW%(1',*2

=RQLQJ 5HVLGHQWLDO=RQH$EXWWDOWRD5RDG=RQH&DWHJRU\ 1DSLHU6WUHHW

2YHUOD\V 1LO

6XEMHFW6LWHDQG6XUURXQGV

Page 19: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KHVLWHLVORFDWHGLQ%HQGLJRRQWKHHDVWVLGHRI1DSLHU6WUHHWRSSRVLWHWKH:HHURRQD2YDO7KHVLWHFRQVLVWVRIWZRODQGSDUFHOVNQRZDV&URZQ$OORWPHQWV6HFWLRQ(DW%HQGLJR3DULVKRI6DQGKXUVW7KH UHVSHFWLYHSURSHUW\DGGUHVVHVDUH1RDQG1R1DSLHU6WUHHW7KHSDUFHOVKDYHDFRPELQHGDUHDRIP DQGDIURQWDJHWR1DSLHU6WUHHWRIP

%XLOW XSRQ HDFK SDUFHO LV D VLQJOH VWRUH\ZHDWKHUERDUG FRWWDJH 7KH KRXVH DW 1RGDWHV IURPFDQGKDVDKLSSHGURRIRIFRUUXJDWHG LURQ7KHKRXVHDW1R LVRIODWHU FRQVWUXFWLRQ GDWLQJ IURP F DQG LW IHDWXUHV D S\UDPLGDO KLSSHG URRI DQG DUHFHVVHGSRUFK7KHKRXVHVDUHVHWEDFNIURP1DSLHU6WUHHWE\DGLVWDQFHRIPDQGP UHVSHFWLYHO\ 7KH EDFN\DUGV DVVRFLDWHG ZLWK HDFK KRXVH DUH TXLWH VSDFLRXV DQGFRQWDLQVPDOORXWEXLOGLQJVDQGPRGHVWJDUGHQSODQWLQJV

7KHVLWHIRUPVSDUWRIDUHVLGHQWLDOQHLJKERXUKRRG7KHUHDUHWKUHHWRZQKRXVHVDGMRLQLQJWKHVLWHWRWKHQRUWKZKLOHWRWKHVRXWKLVDVLQJOHGHWDFKHGGZHOOLQJ7R WKHHDVWUHDURIWKHVLWHDUHWZRUHVLGHQFHVWKDWIURQW%REV6WUHHWZKLFKUXQVSDUDOOHOZLWK1DSLHU6WUHHW

)LJXUH$ ORFDWLRQPDSVKRZLQJWKHVXEMHFWVLWH

3URSRVDO

,W LV SURSRVHG WR VXEGLYLGH WKH VLWH LQWR UHVLGHQWLDO ORWV 7KH VXEGLYLVLRQ OD\RXW ZLOOIHDWXUH ORWVRIDURXQGP DUUDQJHGDURXQGDFHQWUDOFRPPRQSURSHUW\GULYHZD\RII1DSLHU6WUHHW7KHVXEGLYLVLRQZLOOQHFHVVLWDWH WKHGHPROLWLRQRI WKH WZRSHULRGKRXVHVRQWKHVLWH

3ODQQLQJ&RQWUROV *UHDWHU%HQGLJR3ODQQLQJ6FKHPH

7KHVLWH LVLQWKH5HVLGHQWLDO=RQHDQGDEXWVD5RDG=RQH&DWHJRU\1DSLHU6WUHHW7KHSURSRVHGVXEGLYLVLRQRIWKHVLWHWULJJHUVWKHQHHGIRUDSHUPLWSXUVXDQWWRWKH]RQHSURYLVLRQVDQG FODXVH LQ WKH3ODQQLQJ6FKHPH ,W LVRI QRWH WKDW DSHUPLW LVQRWUHTXLUHGIRUDQ\SURSRVHGGHPROLWLRQZRUNV

7KHIROORZLQJFODXVHVLQWKH3ODQQLQJ6FKHPHDUHUHOHYDQWWRWKHDSSOLFDWLRQ

Page 20: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

6WDWH3ODQQLQJ3ROLF\)UDPHZRUN

y 5HJLRQDOGHYHORSPHQWFODXVHy 8UEDQHQYLURQPHQWFODXVHy 6XVWDLQDEOHGHYHORSPHQW FODXVHy +HULWDJHFODXVHy 5HVLGHQWLDOGHYHORSPHQWFODXVHy 0RYHPHQWQHWZRUNVFODXVHy 'HYHORSPHQWLQIUDVWUXFWXUHFODXVH

0XQLFLSDO6WUDWHJLF6WDWHPHQW

y 0XQLFLSDOSURILOHFODXVHy .H\LVVXHVDQGLQIOXHQFHVFODXVHy 9LVLRQ VWUDWHJLFIUDPHZRUNFODXVHy 6WUDWHJLFGLUHFWLRQVFODXVHy 6HWWOHPHQWFODXVHy +RXVLQJFODXVHy 5HIHUHQFHGRFXPHQWVFODXVH

/RFDO3ODQQLQJ3ROLFLHV

y 6DOLQLW\DQGHURVLRQULVNSROLF\ FODXVHy +HULWDJHSROLF\FODXVH

2WKHU3URYLVLRQV

y 5HVLGHQWLDO=RQHFODXVHy /DQG DGMDFHQW WR D URDG ]RQH FDWHJRU\ RU D SXEOLF DFTXLVLWLRQ RYHUOD\ IRU D

FDWHJRU\URDG FODXVHy 5HVLGHQWLDOVXEGLYLVLRQ FODXVHy 'HFLVLRQJXLGHOLQHV FODXVHy 5HIHUUDODQGQRWLFHSURYLVLRQV FODXVH

&RQVXOWDWLRQ&RPPXQLFDWLRQ

5HIHUUDOV

7KHIROORZLQJDXWKRULWLHVDQGLQWHUQDOGHSDUWPHQWVKDYHEHHQFRQVXOWHGRQWKHSURSRVDO

5HIHUUDO &RPPHQW

&ROLEDQ:DWHU 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

3RZHUFRU 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

7HOVWUD 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

7HQL[ 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

9LF5RDGV 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

$VVHW3ODQQLQJ'HVLJQLQWHUQDO 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

+HULWDJH$GYLVRULQWHUQDO 2EMHFWVWRGHPROLWLRQRI1R1DSLHU6WUHHW

Page 21: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3XEOLF1RWLILFDWLRQ

7KHDSSOLFDWLRQZDVDGYHUWLVHGWRWKHSXEOLFE\PDLODQGDQRQVLWHQRWLFH7KHUHZHUHQRREMHFWLRQV

3ODQQLQJ$VVHVVPHQW

7KHKHULWDJHVLJQLILFDQFHRIWKHVLWH

7KH VLWH IRUPV SDUW RI D EORFN RI UHVLGHQWLDO DOORWPHQWV ERXQGHG E\ 1DSLHU 6WUHHW*OHHVRQ 6WUHHW %REV 6WUHHW DQG %XOOHU 6WUHHW 7KH RULJLQDO 3DULVK 3ODQ VHH EHORZVKRZV WKH GLYLVLRQ RI WKH EORFN JHQHUDOO\ LQWR DOORWPHQWV ZLWK IURQWDJHV RI OLQNVP

)LJXUH3DULVKSODQH[WUDFW

7KH DOORWPHQWV IURQWLQJ 1DSLHU 6WUHHW ZKLFK LQFOXGHV WKH VXEMHFW VLWH KDYH EHHQGHYHORSHGRYHUDYDULHW\RISHULRGVPDLQO\IRUWKHSXUSRVHRIVLQJOHGHWDFKHGKRXVLQJ:LWK WKH H[FHSWLRQ RI 1RV DQG 1DSLHU 6WUHHW WKH DOORWPHQWV KDYH QRW EHHQVXEGLYLGHG 7KH JHQHUDOO\ UHJXODU SDWWHUQ RI VXEGLYLVLRQ DQG WKH SUHVHQFH RI KHULWDJHKRXVLQJVWRFNJLYHVWKHVWUHHWVFDSHRI1DSLHU6WUHHWDQ LQWHUHVWLQJFKDUDFWHUZRUWK\RIFRQVHUYDWLRQ

Page 22: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

)LJXUH 7KHGZHOOLQJUHFRPPHQGHGIRUUHWHQWLRQDW1R1DSLHU6WUHHW

)LJXUH7KHGZHOOLQJUHFRPPHQGHGIRUGHPROLWLRQDW1R1DSLHU6WUHHW

,QUHODWLRQWRFRQVHUYDWLRQFRQWUROVDSSOLFDEOHWR1DSLHU6WUHHWLWLVQRWHGWKDWWKHDUHDLVQRW FRYHUHG E\ D +HULWDJH 2YHUOD\ +RZHYHU WKH &LW\ RI *UHDWHU %HQGLJR 7KHPDWLF(QYLURQPHQWDO +LVWRU\ LGHQWLILHG :KLWH +LOOV DV WKH KLJKHVW SULRULW\ IRU KHULWDJHDVVHVVPHQW7KLVKHULWDJHZRUNZLOOFRPPHQFHLQHDUO\

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

Page 23: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KHWZRKRXVHVRQWKHVXEMHFWVLWHKDYHEHHQDVVHVVHGIRUWKHLUFRQVHUYDWLRQYDOXHE\WKH&LW\V+HULWDJH$GYLVRU ,QHVVHQFH WKH+HULWDJH$GYLVRUEHOLHYHVWKDW WKHKRXVHDW1RVKRXOGEH UHWDLQHGGXHWRLWVFRQWULEXWRU\VLJQLILFDQFHWRWKHDUHD6SHFLILFDOO\WKH+HULWDJH$GYLVRUVWDWHV

7KH DUHD KDV D PL[ RI VLQJOH VWRUH\ KRXVHV RI GLIIHUHQW SHULRGV DQG VW\OHV IURP9LFWRULDQ(GZDUGLDQDQG,QWHUZDUSHULRGVZLWKPRUHUHFHQWEXLOGLQJVDV ZHOO7KH\DUHJHQHUDOO\VHWRQODUJHDOORWPHQWVZLWKJHQHURXVVHWEDFNV

7KHKRXVHDWLVVXEVWDQWLDOO\LQWDFWDOWKRXJKWKHYHUDQGDKKDVEHHQPRGLILHGLQWKHVZLWKDGZDUIEULFNZDOODQGVKRUWFHPHQWFROXPQV7KHYHUDQGDKIORRU LVFRQFUHWH7KHIURQWGRRULVDOVRODWHU

$Q LQWHUQDO LQVSHFWLRQZDVFDUULHG RXW RQ 2FWREHU 7KH LQWHULRU UHWDLQV LWVRULJLQDO IORRUV DQG KDV KDG RQO\ PLQRU PRGLILFDWLRQV WR WKH OD\RXW ,W LV LQ JRRGFRQGLWLRQIRULWVDJHZLWKWKHVOLJKWIDOOWRWKHVLGHZDOOVLQGLFDWLQJWKHKRXVHSUREDEO\QHHGVUHVWXPSLQJ7KLVLVH[SHFWHGRIDKRXVHRIWKLVDJH

7KHKRXVHDWLVRIFRQWULEXWRU\VLJQLILFDQFHWRWKHDUHD

7KHKRXVHDWKDVOHDGHGJODVVZLQGRZVRQWKHVWUHHWIDoDGHZKLFKDUHWKHPDLQIHDWXUHVRILQWHUHVW7KHFRQGLWLRQRIWKLVKRXVHLVIDLUSRRU,WLVVHWORZWRWKHJURXQGDQG GRHVQ¶W DSSHDU WR KDYH KDG DQ\ VLJQLILFDQWPDLQWHQDQFH ZRUN GRQH IRUPDQ\\HDUV

7KHGHVLJQRIWKHKRXVHDWLVXQXVXDOEXWWKHKRXVHLWVHOILVERUGHUOLQHLQWHUPVRIFRQWULEXWRU\VLJQLILFDQFH,WGRHVQRWKDYHDQ\DSSDUHQWLQGLYLGXDOVLJQLILFDQFH

7KH:KLWH+LOOV(DVW%HQGLJRVWXG\LVDERXWWRFRPPHQFHDQGZLOOFRYHUWKLVDUHD7KH KRXVH DW FRQWULEXWHV WR WKH LQWHUHVWLQJ PL[ RI 9LFWRULDQ (GZDUGLDQ DQG,QWHUZDU KRXVHV RI WKH DUHD ZKLFK FRQWULEXWH WR WKH FKDUDFWHU DQG KHULWDJH RI WKH:KLWH+LOOVDUHD7KHKRXVHDSSHDUVWREHLQJRRGFRQGLWLRQFRXOGEHDGDSWHGDQGH[WHQGHGLIQHFHVVDU\DQGVKRXOGEHUHWDLQHG

7KHKRXVHDWZRXOGUHTXLUHVLJQLILFDQWH[SHQGLWXUHWR EULQJLWWRJRRGFRQGLWLRQ

7KHSHUPLWDSSOLFDQWUHMHFWVWKLVKHULWDJHDVVHVVPHQWEXWKDVQRWVXSSOLHGDQDOWHUQDWHH[SHUWKHULWDJHRSLQLRQWRVXSSRUWWKHFDVHIRUGHPROLWLRQ,QWKHDEVHQFHRIDQ\FRQWUDU\HYLGHQFHLWLVUHDVRQDEOHWRDGRSWWKH+HULWDJH$GYLVRUVUHFRPPHQGDWLRQDQGFRQFOXGHWKDW 1R 1DSLHU 6WUHHW KDV FRQWULEXWRU\ KHULWDJH YDOXH DQG PXVW EH UHWDLQHG DQGLQFRUSRUDWHG LQWR WKHSURSRVHGVXEGLYLVLRQ ,WVQRWHG WKDW WKHSODQRIVXEGLYLVLRQFRXOGHDVLO\EHPRGLILHGWRFRQVHUYH1RZLWKWKHUHVXOWLQJORVVRIRQO\RQHSURSRVHGORWLH/RWVDQGZRXOGEHFRQVROLGDWHGLQWRDVLQJOHORW

&RPSOLDQFHZLWKFODXVH

3XWWLQJDVLGHWKHKHULWDJHPDWWHUVGLVFXVVHGDERYH WKHSURSRVHGVXEGLYLVLRQFRPSOLHVZLWK WKH UHVLGHQWLDO VXEGLYLVLRQ SURYLVLRQV LQ FODXVH RI WKH 3ODQQLQJ 6FKHPH ,QSDUWLFXODU

Page 24: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

y 7KH VLWH LV FORVH WR VKRSV VHUYLFHV DQG UHFUHDWLRQDO IDFLOLWLHV 7KHUH LV FRQYHQLHQWDFFHVV WR WKH%HQGLJR&%'IURP WKHVLWHYLDDEXV URXWHDORQJ1DSLHU6WUHHW7KHVLWH LV]RQHG IRU UHVLGHQWLDOSXUSRVHVDQG LVVLWXDWHGZLWKLQ%HQGLJRVXUEDQJURZWKERXQGDU\

y 7KH ORWV LQ WKHVXEGLYLVLRQZLOOEH IXOO\VHUYLFHGE\UHWLFXODWHGVHZHUDJHDQGZDWHU(OHFWULFLW\WHOHFRPPXQLFDWLRQVDQGJDVZLOODOVREHVXSSOLHGWRHDFKORW

y 7KHGHVLJQRIWKHSURSRVHGFRPPRQSURSHUW\GULYHZD\LVVXLWDEOHWRDFFRPPRGDWHVDIH DQGHIILFLHQW YHKLFOHPRYHPHQWV9LF5RDGV FRQVHQWV WR WKH QHZDFFHVV SRLQWRQWR1DSLHU6WUHHW

y 7KH VL]H DQG OD\RXW RI WKH SURSRVHG ORWV DUH LQ NHHSLQJ ZLWK RWKHU KRXVLQJGHYHORSPHQWVLQDUHDPRVWQRWDEO\WKHWRZQKRXVHVWKDWGLUHFWO\DEXWWKHVLWHWRWKHQRUWK

&RQFOXVLRQ

)RU WKH UHDVRQV GLVFXVVHG DERYH LW LV FRQFOXGHG WKDW WKH SHUPLW DSSOLFDWLRQ GRHV QRWPHHWWKHUHTXLUHPHQWVRIWKH3ODQQLQJ6FKHPHDQGRQWKLVEDVLVDSHUPLWVKRXOGQRWEHJUDQWHG

2SWLRQV

&RXQFLODFWLQJDVWKHUHVSRQVLEOHDXWKRULW\IRUDGPLQLVWHULQJWKHSODQQLQJVFKHPHPD\UHVROYH WR JUDQW D SHUPLW JUDQW D SHUPLW VXEMHFW WR FRQGLWLRQV RU UHIXVH WR JUDQW DSHUPLW

$WWDFKPHQWV

$GYLFHIURPWKH&LW\V+HULWDJH$GYLVRU

5(&200(1'$7,21

3XUVXDQW WR VHFWLRQ RI WKH 3ODQQLQJ DQG (QYLURQPHQW $FW *UHDWHU %HQGLJR&LW\&RXQFLO UHVROYH WR UHIXVH WR JUDQW D SHUPLW WR VXEGLYLGH WKH ODQG DW DQG 1DSLHU6WUHHW%HQGLJRLQWR ORWV EDVHGRQWKHIROORZLQJJURXQGV

7KHSURSRVHGVXEGLYLVLRQZLOO UHVXOW LQ WKHGHPROLWLRQRID9LFWRULDQHUDGZHOOLQJDW1R1DSLHU6WUHHWZKLFKKDVVLJQLILFDQWKHULWDJHYDOXH

Page 25: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

027,21

0RYHG&U&KDSPDQVHFRQGHG&U/HDFK

3XUVXDQW WR VHFWLRQ RI WKH 3ODQQLQJ DQG (QYLURQPHQW $FW *UHDWHU %HQGLJR&LW\&RXQFLO UHVROYH WR LVVXHD1RWLFHRI'HFLVLRQ WR*UDQW D3HUPLW IRU VXEGLYLVLRQRIODQGLQWRORWVDW1DSLHU6WUHHW%HQGLJRVXEMHFWWRWKHIROORZLQJFRQGLWLRQV

3/$1672%((1'256('7KHSODQVWREHHQGRUVHGDQGZKLFKZLOOWKHQIRUPSDUWRIWKHSHUPLWDUHWKHSODQVVXEPLWWHGZLWKWKHDSSOLFDWLRQ

/$<287 3/$167KHVXEGLYLVLRQDVVKRZQRQWKHHQGRUVHGSODQVPXVWQRWEHDOWHUHGZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKHUHVSRQVLEOHDXWKRULW\

38%/,&23(163$&(&2175,%87,21%HIRUH WKHVWDWHPHQWRI FRPSOLDQFH LV LVVXHG WKHDSSOLFDQWRURZQHUPXVWSD\ WRWKHUHVSRQVLEOHDXWKRULW\DVXPHTXLYDOHQWWRRIWKHVLWHYDOXHRIDOOWKHODQGLQWKHVXEGLYLVLRQ

5(029$/2)%8,/',1*6%HIRUHDVWDWHPHQWRIFRPSOLDQFH LVLVVXHGIRUWKHVXEGLYLVLRQDOOEXLOGLQJVRQWKHVLWHPXVWEHUHPRYHG

'(7$,/(''5$,1$*(3ULRUWRWKHFHUWLILFDWLRQRIWKHSODQRIVXEGLYLVLRQXQGHUWKH6XEGLYLVLRQ$FWSODQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOH DXWKRULW\ PXVW EH VXEPLWWHG WR DQGDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\:KHQDSSURYHGWKHSODQVZLOOEHHQGRUVHGDQG WKHQ ZLOO IRUP SDUW RI WKH SHUPLW 7KH SODQV PXVW EH GUDZQ WR VFDOH ZLWKGLPHQVLRQV7KHSODQVPXVWLQFOXGHD 'LUHFWLRQRIVWRUPZDWHUUXQRIIE $SRLQWRIGLVFKDUJHIRUHDFKORWF ,QGHSHQGHQWGUDLQDJHIRUHDFKORW

67250:$7(5'(7(17,213ULRU WRWKHLVVXHRIDVWDWHPHQWRIFRPSOLDQFHWKHRZQHURUDSSOLFDQWPXVWSURYLGHRQVLWHVXUIDFHDQGVWRUPZDWHUGHWHQWLRQ WRSUHGHYHORSPHQW OHYHOV LQDFFRUGDQFHZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOH DXWKRULW\$OORZDEOHGLVFKDUJH4 OV

67250:$7(548$/,7<%HIRUHWKHXVHRUGHYHORSPHQWLVFRPPHQFHGWKHRZQHURUDSSOLFDQWPXVWSURYLGHD VWRUPZDWHU WUHDWPHQW V\VWHP WR DFKLHYH WKH %HVW 3UDFWLFH (QYLURQPHQWDO*XLGHOLQHV VWRUP ZDWHU TXDOLW\ 9LFWRULD 6WRUPZDWHU &RPPLWWHH LQDFFRUGDQFH ZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOHDXWKRULW\

Page 26: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KH UHVSRQVLEOH DXWKRULW\ PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQ WRZDUGV WKH WUHDWPHQW RI VXUIDFHDQG VWRUPZDWHU GLVFKDUJH IURP WKHDSSURYHGVXEGLYLVLRQEXLOGLQJDQGRUZRUNVZKHWKHURUQRWVXFKQHZVWRUPZDWHUWUHDWPHQW LQIUDVWUXFWXUH KDV EHHQ RUZLOO EH VLWXDWHGZLWKLQ WKH ERXQGDULHV RI WKHVXEMHFW ODQG RU LWV LPPHGLDWH FDWFKPHQW 6XFK DPRXQW LV DVVHVVHG DV RUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

'5$,1$*(:25.63ULRU WR WKH LVVXH RI WKH VWDWHPHQW RI FRPSOLDQFH IRU WKH VXEGLYLVLRQ GUDLQDJHZRUNVPXVWEHFRQVWUXFWHG LQDFFRUGDQFHZLWKSODQVDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\

6(&7,21$*5((0(17,I DVWRUPZDWHUGHWHQWLRQV\VWHPRUDZDWHUTXDOLW\WUHDWPHQWV\VWHPLVLQVWDOOHGRQWKH VLWH WKH RZQHU PXVW HQWHU LQWR DQ DJUHHPHQW ZLWK WKH UHVSRQVLEOH DXWKRULW\XQGHU6HFWLRQRIWKH3ODQQLQJDQG(QYLURQPHQW$FWEHIRUHDVWDWHPHQWRIFRPSOLDQFHLVLVVXHG7KHDJUHHPHQWPXVWSURYLGHIRUWKHIROORZLQJD $OOV\VWHPVPXVWEHGHVLJQHGE\DTXDOLILHGHQJLQHHUDQGPXVWEHDSSURYHGE\

WKHUHVSRQVLEOHDXWKRULW\EHIRUHFRQVWUXFWLRQE $OOV\VWHPVPXVWEHLQVWDOOHGEHIRUHRUFRQFXUUHQWO\ZLWKWKHGHYHORSPHQWRID

EXLOGLQJRQWKHVLWHF $OOV\VWHPVPXVWEHFRPSOHWHGEHIRUHWKH\DUHFRQQHFWHGWR&RXQFLOVGUDLQDJH

V\VWHPG $OOV\VWHPVPXVWEHPDLQWDLQHGE\WKHRZQHUDQGPXVWQRWEHPRGLILHGZLWKRXW

WKHZULWWHQDSSURYDORIWKHUHVSRQVLEOHDXWKRULW\H 7KHRZQHUPXVWDOORZDXWKRULVHG&RXQFLORIILFHUVWRLQVSHFWDQ\V\VWHPRQWKH

VLWHIURPWLPHWRWLPHI 7KHRZQHUPXVWSD\DOOFRVWVDVVRFLDWHGZLWKWKHFRQVWUXFWLRQDQGPDLQWHQDQFH

RIDQ\V\VWHPRQWKHVLWH

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

Page 27: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&2/,%$1:$7(5D 7KH RZQHU LV UHTXLUHG WR SURYLGH UHWLFXODWHGZDWHU DQG VHZHUDJH VHUYLFHV WR

HDFK RI WKH ORWV ZLWKLQ WKH VXEGLYLVLRQ 6HUYLFHV DUH WR EH SURYLGHG LQDFFRUGDQFHZLWK&ROLEDQ:DWHU¶VVSHFLILFDWLRQV

E $OO&ROLEDQ:DWHUDVVHWVZLWKLQWKHVXEGLYLVLRQERWKH[LVWLQJDQGSURSRVHGDUHWREHSURWHFWHGE\DQHDVHPHQWLQIDYRXURI&ROLEDQ5HJLRQ:DWHU&RUSRUDWLRQ

32:(5&25D 7KH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ XQGHU WKH 6XEGLYLVLRQ $FW

VKDOOEHUHIHUUHGWR3RZHUFRU$XVWUDOLD/WGLQDFFRUGDQFHZLWK6HFWLRQRIWKDW$FW

E 7KHDSSOLFDQWVKDOO3URYLGHDQHOHFWULFLW\VXSSO\WRDOOORWVLQWKHVXEGLYLVLRQLQDFFRUGDQFH ZLWK 3RZHUFRU¶V UHTXLUHPHQWV DQG VWDQGDUGV LQFOXGLQJ WKHH[WHQVLRQ DXJPHQWDWLRQ RU UHDUUDQJHPHQW RI DQ\ H[LVWLQJ HOHFWULFLW\ VXSSO\V\VWHPDVUHTXLUHGE\3RZHUFRU$SD\PHQWWRFRYHUWKHFRVWRIVXFKZRUNZLOOEH UHTXLUHG ,Q WKH HYHQW WKDW D VXSSO\ LV QRW SURYLGHG WKH DSSOLFDQW VKDOOSURYLGH D ZULWWHQ XQGHUWDNLQJ WR 3RZHUFRU $XVWUDOLD /WG WKDW SURVSHFWLYHSXUFKDVHUVZLOOEHVRLQIRUPHG

F 7KHDSSOLFDQWVKDOO:KHUHEXLOGLQJVRU RWKHULQVWDOODWLRQVH[LVWRQWKHODQGWREHVXEGLYLGHG DQG DUH FRQQHFWHG WR WKH HOHFWULFLW\ VXSSO\ WKH\ VKDOO EH EURXJKWLQWRFRPSOLDQFHZLWKWKH6HUYLFHDQG,QVWDOODWLRQ5XOHVLVVXHGE\WKH9LFWRULDQ(OHFWULFLW\ 6XSSO\ ,QGXVWU\ 7KH DSSOLFDQW VKDOO DUUDQJH FRPSOLDQFH WKURXJK D5HJLVWHUHG(OHFWULFDO&RQWUDFWRU

G 7KHDSSOLFDQWVKDOO3URYLGHWR3RZHUFRU$XVWUDOLD/WGDFRS\RIWKHYHUVLRQRIWKH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ ZKLFK VKRZV DQ\DPHQGPHQWVZKLFKKDYHEHHQUHTXLUHG

H $Q\EXLOGLQJVPXVWFRPSO\ZLWKWKHFOHDUDQFHVUHTXLUHGE\WKH(OHFWULFLW\6DIHW\1HWZRUN$VVHWV5HJXODWLRQV

I $Q\ FRQVWUXFWLRQ ZRUN PXVW FRPSO\ ZLWK WKH 2IILFHU RI WKH &KLHI (OHFWULFDO,QVSHFWRU1R*R=RQHUXOHV

7(/675$7KH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ PXVW EH UHIHUUHG WR 7HOVWUD LQDFFRUGDQFHZLWK6HFWLRQRIWKH6XEGLYLVLRQ$FW

7(1,;7KHSODQRI VXEGLYLVLRQVXEPLWWHG IRUFHUWLILFDWLRQPXVW EH UHIHUUHG WR63$XV1HW*DVLQDFFRUGDQFHZLWK6HFWLRQRIWKH6XEGLYLVLRQ$FW

9,&52$'6D 7KHH[LVWLQJFURVVRYHUDWWKHVRXWKHUQERXQGDU\RI1DSLHU6WUHHW%HQGLJR

PXVW EH UHPRYHG DQG WKH YHUJH GUDLQDJH DQG IRRWSDWK UHLQVWDWHG WR WKHVDWLVIDFWLRQRIERWK9LF5RDGVDQGWKH5HVSRQVLEOH$XWKRULW\

E 7KHSURSRVHGZLGHQLQJRI WKHH[LVWLQJFURVVRYHUDW WKHVRXWKHUQERXQGDU\RI1DSLHU6WUHHW%HQGLJRPXVWEHVHDOHGDQGFRQVWUXFWHGWRWKHVDWLVIDFWLRQRIERWK9LF5RDGVDQGWKHUHVSRQVLEOHDXWKRULW\

&$55,('

Page 28: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 29: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 30: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

68%',9,6,21 2) /$1' ,172 /276 :22':$5' 52$' *2/'(1648$5(

'RFXPHQW,QIRUPDWLRQ

$XWKRU 6WHSKHQ:DLQZULJKW&RRUGLQDWRU6XEGLYLVLRQV

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJ'HYHORSPHQW'LUHFWRU

6XPPDU\3XUSRVH

7KLVUHSRUWFRQFHUQVDSODQQLQJSHUPLWDSSOLFDWLRQ WKDWVHHNVDSSURYDOWRVXEGLYLGHWKHODQGDW:RRGZDUG5RDG *ROGHQ6TXDUHLQWRUHVLGHQWLDOORWV7KHVLWHLVORFDWHGLQD5HVLGHQWLDO=RQH

$EXWWLQJ WKH VLWH WR WKH VRXWK LV D UHVLGHQFH ZKHUH UDFLQJ JUH\KRXQGV DUH NHSW 7KHRZQHUV RI WKLV SURSHUW\ REMHFW WR WKH SURSRVHG VXEGLYLVLRQ RQ WKH JURXQGV WKDW LW ZLOOSUHMXGLFHWKHLUJUH\KRXQGNHHSLQJDFWLYLWLHV

7KLV UHSRUW DFFHVVHV WKHPHULWV RI WKH SURSRVHG VXEGLYLVLRQDQGGLVFXVVHV WKH LVVXHVUDLVHGE\ WKHQHLJKERXULQJREMHFWRUV7KH UHSRUW FRQFOXGHV WKDW WKHSURSRVDO FRPSOLHVZLWKWKH3ODQQLQJ6FKHPH

3ROLF\&RQWH[W

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ± XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW6WUDWHJLF2EMHFWLYHV

9DOXHFRQVHUYHDQGHQKDQFHWKHULFKEXLOWDQGQDWXUDOKHULWDJH$FKLHYHKLJKTXDOLW\RXWFRPHVLQSODQQLQJDQGSROLF\DFWLYLWLHV(QFRXUDJHDQGIRVWHUKLJKTXDOLW\GHVLJQWRFUHDWHHQYLURQPHQWVWKDWVXSSRUWSXEOLFZHOOEHLQJDQGHFRQRPLFVXFFHVV

5HSRUW

$SSOLFDWLRQ1R '6

$SSOLFDWLRQ'DWH -XQH

$SSOLFDQW -'2&3W\/WG

/DQG :RRGZDUG5RDG*2/'(1648$5(

=RQLQJ 5HVLGHQWLDO=RQH

2YHUOD\V (QYLURQPHQWDO6LJQLILFDQFH2YHUOD\ :DWHUFRXUVH3URWHFWLRQ

Page 31: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

6XEMHFW6LWHDQG6XUURXQGV

7KHVLWH LVORFDWHGRQWKHHDVWVLGHRI:RRGZDUG5RDGLQ*ROGHQ6TXDUHPQRUWKRI+DWWDP6WUHHW 7KH VLWH FRQVLVWV RI D VLQJOH&URZQ$OORWPHQW WKDW LV P LQ DUHD7KHUH LV D VLQJOH VWRUH\ WLPEHU GZHOOLQJ RQ WKH VLWH WKDW GDWHV IURP FLUFD 7KLVGZHOOLQJLVVLWXDWHGWRZDUGVWKHQRUWKZHVWFRUQHURIWKHVLWH7KHEDODQFHRIWKHVLWHLVYDFDQW7KHUHDUHDIHZVFDWWHUHGWUHHVRQWKHVLWH

5HVLGHQWLDO SURSHUWLHV RI VLPLODU VL]H WR WKH VXEMHFW VLWH DEXW WKH QRUWK DQG WKH VRXWKERXQGDULHVRIWKHVLWH5DFLQJJUH\KRXQGVDUHNHSWRQWKHQHLJKERXULQJSURSHUW\WRWKHVRXWK7KHODQGWRWKHUHDURIWKHVLWHLV&URZQ/DQG

)LJXUH/RFDWLRQPDSVKRZLQJVXEMHFWVLWH2EMHFWRUVSURSHUW\ PDUNHGZLWKDVWDU

3URSRVDO

,W LV SURSRVHG WR VXEGLYLGH WKH VLWH LQWR UHVLGHQWLDO ORWV 7KH VXEGLYLVLRQ OD\RXW ZLOOIHDWXUHy 7KHUHWHQWLRQRIWKHH[LVWLQJSHULRGKRXVHRQ/RWy 7KHFUHDWLRQRIVHYHQQHZYDFDQW ORWV UDQJLQJIURPP WRP \LHOGLQJDQHW

UHVLGHQWLDOGHQVLW\RIP LQFOXGLQJ/RWy $ P ZLGH FRPPRQ SURSHUW\ GULYHZD\ ZLWK D 7KHDG GHVLJQ WR SURYLGH YHKLFOH

DFFHVVWR/RWVWR/RWVDQGZLOOJDLQGLUHFWDFFHVVRII:RRGZDUG5RDG

7KHORWVFUHDWHGE\WKHVXEGLYLVLRQZLOOEHIXOO\VHUYLFHGE\ZDWHUVHZHUDJHHOHFWULFLW\WHOHFRPPXQLFDWLRQVDQGJDVVXSSO\V\VWHPV$OOYHJHWDWLRQRQWKHVLWHZLOOEHFOHDUHGDVDUHVXOWRIWKHVXEGLYLVLRQ

3ODQQLQJ&RQWUROV *UHDWHU%HQGLJR3ODQQLQJ6FKHPH

7KHVLWHLVORFDWHGLQWKH5HVLGHQWLDO=RQHDQGLVSDUWO\ FRYHUHGE\6FKHGXOHWRWKH(QYLURQPHQWDO 6LJQLILFDQFH2YHUOD\$SHUPLWLVUHTXLUHGWRVXEGLYLGHWKHVLWHSXUVXDQWWRWKH ]RQH DQG RYHUOD\ SURYLVLRQV 7KH IROORZLQJ FODXVHV LQ WKH SODQQLQJ VFKHPH DUHUHOHYDQWLQWKHFRQVLGHUDWLRQRIWKHDSSOLFDWLRQ

Page 32: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

6WDWH3ODQQLQJ3ROLF\)UDPHZRUN

y 5HJLRQDOGHYHORSPHQWFODXVHy 8UEDQHQYLURQPHQWFODXVHy 6XVWDLQDEOHGHYHORSPHQWFODXVHy 5HVLGHQWLDOGHYHORSPHQWFODXVHy 0RYHPHQWQHWZRUNVFODXVHy 'HYHORSPHQWLQIUDVWUXFWXUHFODXVH

0XQLFLSDO6WUDWHJLF6WDWHPHQW

y 0XQLFLSDOSURILOHFODXVHy .H\LVVXHVDQGLQIOXHQFHVFODXVHy 9LVLRQ VWUDWHJLFIUDPHZRUNFODXVHy 6WUDWHJLFGLUHFWLRQVFODXVHy 6HWWOHPHQWFODXVHy +RXVLQJFODXVHy 5HIHUHQFHGRFXPHQWVFODXVH

/RFDO3ODQQLQJ3ROLFLHV

y 6DOLQLW\DQGHURVLRQULVNSROLF\FODXVHy ,QGXVWULDOSROLF\FODXVHy +HULWDJHSROLF\FODXVHy *ROGHQ6TXDUHUHVLGHQWLDOFKDUDFWHUSROLF\FODXVH

2WKHU3URYLVLRQV

y 5HVLGHQWLDO=RQHFODXVHy 5HVLGHQWLDOVXEGLYLVLRQFODXVHy 'HFLVLRQJXLGHOLQHVFODXVHy 5HIHUUDODQGQRWLFHSURYLVLRQVFODXVH

&RQVXOWDWLRQ&RPPXQLFDWLRQ

5HIHUUDOV

7KHIROORZLQJDXWKRULWLHVDQGLQWHUQDOGHSDUWPHQWVKDYHEHHQFRQVXOWHGRQWKHSURSRVDO

5HIHUUDO &RPPHQW

&ROLEDQ:DWHU 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

3RZHUFRU 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

7HOVWUD 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

7HQL[ 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

&)$QRWLFHRQO\ 1RUHSO\

1RUWK&HQWUDO&0$ 1RREMHFWLRQ

'6( 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

Page 33: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5HIHUUDO &RPPHQW

$VVHW3ODQQLQJ'HVLJQLQWHUQDO 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

3XEOLF1RWLILFDWLRQ

7KHDSSOLFDWLRQZDVDGYHUWLVHGWRWKHSXEOLFE\PDLODQGDQRQVLWHQRWLFH7KHRZQHUVRIDQDGMRLQLQJSURSHUW\KDYHREMHFWHGWRDSHUPLWEHLQJJUDQWHGGXHWRFRQFHUQVDERXWWKHHIIHFWWKHVXEGLYLVLRQPD\KDYHRQWKHUDFLQJJUH\KRXQGVWKDWDUHNHSWRQWKHLUSURSHUW\7KHREMHFWLRQLVGLVFXVVHGODWHULQWKLVUHSRUW

$ FRQVXOWDWLRQPHHWLQJZDV KHOG ZKLFKZDV DWWHQGHG E\ WKH SHUPLW DSSOLFDQW DQG WKHREMHFWRUV7KHPHHWLQJGLGQWUHVROYHWKHREMHFWRUVFRQFHUQV

3ODQQLQJ$VVHVVPHQW

7KHQHLJKERXULQJJUH\KRXQGNHQQHOV

7KHQHLJKERXUVRQWKHVRXWKVLGHRIWKHVXEMHFWVLWHNHHSJUH\KRXQGVRQWKHLUSURSHUW\DQGWKH\KDYHGRQHVR IRUWKHSDVW\HDUV7KHJUH\KRXQGNHQQHOVDUHORFDWHGDORQJWKHFRPPRQERXQGDU\ZLWKWKHVXEMHFWVLWH

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

7KHVH QHLJKERXUV REMHFW WR WKH SURSRVHG VXEGLYLVLRQ EHFDXVH WKH\ EHOLHYH LW ZLOOSUHMXGLFH WKHLU DELOLW\ WR NHHS JUH\KRXQGV 7KH\ DUJXH WKDW SHRSOH OLYLQJ LQ WKHVXEGLYLVLRQZLOOFRPSODLQDERXWWKHOHYHORIQRLVHJHQHUDWHGE\WKHNHQQHOV)XUWKHUPRUHWKH\ DUH FRQFHUQHG WKDW DQ LQFUHDVH LQ UHVLGHQWLDO DFWLYLW\ ZLOO XSVHW WKHLU GRJVSDUWLFXODUO\GXULQJWKHFRQVWUXFWLRQRIGZHOOLQJVRQWKHORWV

7KHPDLQRSWLRQDYDLODEOH WR&RXQFLO WRDGGUHVV WKHREMHFWLRQ LV WR UHTXLUHDQDFRXVWLFWUHDWPHQWDORQJWKHFRPPRQERXQGDU\EHWZHHQWKHVLWHDQGWKHQHLJKERXULQJSURSHUW\EURDGO\LQWKHIRUPRIDQDFRXVWLFIHQFH3UHFLVHGHWDLOVRIWKHWUHDWPHQWZRXOGQHHGWREH GHYHORSHG ZLWK LQSXW IURP DQ DFRXVWLF H[SHUW DQG UHVSRQVLELOLW\ IRU WKH ORQJWHUPPDLQWHQDQFHRIWKHWUHDWPHQWZRXOGQHHGWREHDJUHHGXSRQ

,VDQDFRXVWLFWUHDWPHQWMXVWLILHGLQWKLVFDVH"7KHUHDUHVHYHUDOPDWWHUVWKDWDUHUHOHYDQWWRWKLVTXHVWLRQ)LUVWWKHQHLJKERXULQJSURSHUW\IRUPVSDUWRIDQHVWDEOLVKHGUHVLGHQWLDOQHLJKERXUKRRG:KLOHWKHDUHDGRHVKDYHDVHPLUXUDOIHHOLWLVQRQHWKHOHVVSDUWRIXUEDQ%HQGLJRDQG LVZLWKLQ%HQGLJRVXUEDQJURZWKERXQGDU\7KHDUHDKDVEHHQ]RQHGIRUUHVLGHQWLDOSXUSRVHVVLQFHDWOHDVW-XQH,QWKLVFRQWH[WUHVLGHQWVVKRXOGEHHQWLWOHGWRHQMR\DPHQLW\VWDQGDUGVFRPSDUDEOHWRRWKHUUHVLGHQWLDOQHLJKERXUKRRGVLQ%HQGLJR

Page 34: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5HVLGHQWVVKRXOGQWEHH[SHFWHGWRWROHUDWHH[FHVVLYHQRLVHIURPWKHH[LVWLQJJUH\KRXQGNHQQHOV$QREOLJDWLRQ IDOOVXSRQ WKHJUH\KRXQGRZQHUV WRSURSHUO\PDQDJH WKHLUGRJVDQG WKHFRQGLWLRQV LQZKLFK WKH\DUHNHSW7KLVPD\ LQGHHGQHFHVVLWDWH WKHJUH\KRXQGRZQHUV WDNLQJ PHDVXUHV RQ WKHLU RZQ SURSHUW\ WR SURWHFW WKH DFRXVWLF SULYDF\ RI DQ\DGMRLQLQJQHLJKERXUV

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

7KLUG HYHQ LI DQ DFRXVWLF WUHDWPHQW LVQW SURYLGHG DV SDUW RI WKH VXEGLYLVLRQ WKHUH LVQRWKLQJWRSUHYHQWLQGLYLGXDOORWSXUFKDVHUVIURPFRQVWUXFWLQJWKHLURZQDFRXVWLFIHQFLQJLIWKH\IHHOLWLVQHFHVVDU\

7KHVH PDWWHUV OHDG WR WKH FRQFOXVLRQ WKDW DFRXVWLF PHDVXUHV DUH QRW D UHDVRQDEOHUHTXLUHPHQWWRLPSRVHXSRQWKHSURSRVHGVXEGLYLVLRQ

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

&RPSOLDQFHZLWKFODXVH

7KHUHVLGHQWLDOVXEGLYLVLRQSURYLVLRQVLQFODXVHRIWKH3ODQQLQJ6FKHPHDSSO\WRWKHDSSOLFDWLRQ7KHSURSRVHGVXEGLYLVLRQFRPSOLHVZLWKDOOWKH6WDQGDUGVLQWKHFODXVHDQGLQSDUWLFXODU

y 7KHVLWHLVFORVHWRWKH*ROGHQ6TXDUHVKRSSLQJFHQWUH7KHUH DUHVKRSVSDUNVDQGFRPPXQLW\ IDFLOLWLHV QHDU WKH VLWH 7KH VLWH LV DSSURSULDWHO\ ]RQHG IRU UHVLGHQWLDOSXUSRVHV DQG LW IRUPV SDUW RI DQ HVWDEOLVKHG UHVLGHQWLDO QHLJKERXUKRRG ZLWKLQ%HQGLJRVXUEDQJURZWKERXQGDU\

y 7KH ORWV LQ WKHVXEGLYLVLRQZLOOEH IXOO\VHUYLFHGE\UHWLFXODWHGZDWHUDQGVHZHUDJH(OHFWULFLW\WHOHFRPPXQLFDWLRQVDQGJDVZLOODOVREHVXSSOLHGWRHDFKORW

y 7KHSURSRVHGLQWHUQDOGULYHZD\ ZLOOEHGHVLJQHGWRDOORZHPHUJHQF\YHKLFOHVWRWXUQDURXQGDWWKHHQGRIWKHGULYHZD\

y 7KH SURSRVHG ORWV ZLOO YDU\ LQ VL]H EHWZHHQ P DQG P H[FOXGLQJ /RW 7KHVHORWVL]HVDUH FDSDEOHRIFRQWDLQLQJDUHFWDQJOHPHDVXULQJPE\P$OOWKHORWVZLOOHQMR\JRRG RSSRUWXQLWLHVIRUQRUWKHUQVXQOLJKW7KHORWOD\RXWDQGGHQVLW\ZLOOEH LQ NHHSLQJ ZLWK WKH H[LVWLQJ QHLJKERXUKRRG FKDUDFWHU SDUWLFXODUO\ JLYHQ WKHSURSRVHGUHWHQWLRQRIWKHH[LVWLQJGZHOOLQJRQ/RW

&RQFOXVLRQ

)RU WKH UHDVRQVGLVFXVVHGDERYH LW LV FRQFOXGHG WKDW WKHSHUPLWDSSOLFDWLRQPHHWV WKHUHTXLUHPHQWVRIWKH3ODQQLQJ6FKHPHDQGRQWKLVEDVLVDSHUPLWVKRXOGEHJUDQWHG

Page 35: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

2SWLRQV

&RXQFLODFWLQJDVWKHUHVSRQVLEOHDXWKRULW\IRUDGPLQLVWHULQJWKHSODQQLQJVFKHPHPD\UHVROYH WR JUDQW D SHUPLW JUDQW D SHUPLW VXEMHFW WR FRQGLWLRQV RU UHIXVH WR JUDQW DSHUPLW

$WWDFKPHQWV

2EMHFWLRQ

5(&200(1'$7,21

3XUVXDQW WR VHFWLRQ RI WKH 3ODQQLQJ DQG (QYLURQPHQW $FW *UHDWHU %HQGLJR&LW\&RXQFLOUHVROYHWRLVVXHD1RWLFHRI'HFLVLRQWR*UDQWD3HUPLWWRVXEGLYLGHWKHODQGDW:RRGZDUG5RDG*ROGHQ6TXDUHLQWRORWVVXEMHFWWRWKHIROORZLQJFRQGLWLRQV

3/$1672%((1'256('7KHSODQV WREHHQGRUVHGDQGZKLFKZLOOWKHQIRUPSDUWRIWKHSHUPLWDUHWKHSODQVVXEPLWWHGZLWKWKHDSSOLFDWLRQ

/$<2873/$167KHVXEGLYLVLRQDVVKRZQRQWKHHQGRUVHGSODQVPXVWQRWEHDOWHUHGZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKHUHVSRQVLEOHDXWKRULW\

38%/,&23(163$&(&2175,%87,21%HIRUH WKHVWDWHPHQWRI FRPSOLDQFH LV LVVXHG WKHDSSOLFDQWRURZQHUPXVWSD\ WRWKHUHVSRQVLEOHDXWKRULW\DVXPHTXLYDOHQWWRRIWKHVLWHYDOXHRIDOOWKHODQGLQWKHVXEGLYLVLRQ

5(029$/2)287%8,/',1*6%HIRUHDVWDWHPHQWRIFRPSOLDQFH LV LVVXHGIRU WKHVXEGLYLVLRQDOORXWEXLOGLQJVRQWKH VLWHPXVW EH UHPRYHG H[FHSW IRU DQ\ RXWEXLOGLQJ ZKROO\ FRQWDLQHGZLWKLQ WKHERXQGDULHVRI/RW

6(&7,21$*5((0(17%HIRUHWKHSODQRIVXEGLYLVLRQLVFHUWLILHG WKHRZQHUPXVWHQWHU LQWRDQDJUHHPHQWZLWKWKHUHVSRQVLEOHDXWKRULW\XQGHUVHFWLRQRI WKH3ODQQLQJDQG(QYLURQPHQW$FW DQG PXVW PDNH DSSOLFDWLRQ WR WKH 5HJLVWUDU RI 7LWOHV WR KDYH WKHDJUHHPHQW UHJLVWHUHGRQ WKH WLWOH WR WKH ODQGXQGHU VHFWLRQRI WKH$FWZKLFKSURYLGHVWKDWXSRQWKHVDOHRIDQ\ORW LQWKHVXEGLYLVLRQWKHYHQGRUPXVWGLVFORVHWR DQ\ SXUFKDVHU WKDW UDFLQJ JUH\KRXQGV DUH NHSW RQ WKH DGMRLQLQJ SURSHUW\ DW1R:RRGZDUG5RDG

'(7$,/(''5$,1$*(3ULRUWRWKHFHUWLILFDWLRQRIWKHSODQRIVXEGLYLVLRQXQGHUWKH6XEGLYLVLRQ$FWSODQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOH DXWKRULW\ PXVW EH VXEPLWWHG WR DQGDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\:KHQDSSURYHGWKHSODQVZLOOEHHQGRUVHGDQG WKHQ ZLOO IRUP SDUW RI WKH SHUPLW 7KH SODQV PXVW EH GUDZQ WR VFDOH ZLWKGLPHQVLRQV7KHSODQVPXVWLQFOXGHD 'LUHFWLRQRIVWRUPZDWHUUXQRII

Page 36: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

E $SRLQWRIGLVFKDUJHIRUHDFKORWF ,QGHSHQGHQWGUDLQDJHIRUHDFKORW

67250:$7(5'(7(17,213ULRUWRWKHLVVXHRIDVWDWHPHQWRIFRPSOLDQFHWKHRZQHURUDSSOLFDQWPXVWSURYLGHRQVLWHVXUIDFHDQGVWRUPZDWHUGHWHQWLRQ WRSUHGHYHORSPHQW OHYHOV LQDFFRUGDQFHZLWKSODQVDQGVSHFLILFDWLRQVWRWKHVDWLVIDFWLRQRIWKHUHVSRQVLEOHDXWKRULW\

7KH 5HVSRQVLEOH $XWKRULW\ PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQWRZDUGVWKHDFFHSWDQFHRIVXUIDFHDQGVWRUPZDWHUGLVFKDUJHIURPWKHDSSURYHG VXEGLYLVLRQ EXLOGLQJ DQGRU ZRUNV ZKHWKHU RU QRW VXFK QHZ GUDLQDJHLQIUDVWUXFWXUHKDVEHHQRUZLOOEHVLWXDWHGZLWKLQWKHERXQGDULHVRIWKHVXEMHFWODQG6XFK DPRXQW LV DVVHVVHG DV RU VXFK DPRXQW DSSO\LQJ DW WKH WLPH RISD\PHQW

67250:$7(548$/,7<%HIRUHWKHXVHRUGHYHORSPHQWLVFRPPHQFHGWKHRZQHURUDSSOLFDQWPXVWSURYLGHD VWRUPZDWHU WUHDWPHQW V\VWHP WR DFKLHYH WKH %HVW 3UDFWLFH (QYLURQPHQWDO*XLGHOLQHV VWRUP ZDWHU TXDOLW\ 9LFWRULD 6WRUPZDWHU &RPPLWWHH LQDFFRUGDQFH ZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOHDXWKRULW\

7KH 5HVSRQVLEOH $XWKRULW\ PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQ WRZDUGV WKH WUHDWPHQW RI VXUIDFHDQG VWRUPZDWHU GLVFKDUJH IURP WKHDSSURYHGVXEGLYLVLRQEXLOGLQJDQGRUZRUNVZKHWKHURUQRWVXFKQHZVWRUPZDWHUWUHDWPHQW LQIUDVWUXFWXUH KDV EHHQ RUZLOO EH VLWXDWHGZLWKLQ WKH ERXQGDULHV RI WKHVXEMHFW ODQG RU LWV LPPHGLDWH FDWFKPHQW 6XFK DPRXQW LV DVVHVVHG DV RUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

'5$,1$*(:25.63ULRU WR WKH LVVXH RI WKH VWDWHPHQW RI FRPSOLDQFH IRU WKH VXEGLYLVLRQ GUDLQDJHZRUNVPXVWEHFRQVWUXFWHG LQDFFRUGDQFHZLWKSODQVDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\

6(&7,21$*5((0(17,IDVWRUPZDWHUGHWHQWLRQV\VWHPRUDZDWHUTXDOLW\WUHDWPHQWV\VWHPLVLQVWDOOHGRQWKH VLWH WKH RZQHU PXVW HQWHU LQWR DQ DJUHHPHQW ZLWK WKH UHVSRQVLEOH DXWKRULW\XQGHU6HFWLRQRIWKH3ODQQLQJDQG(QYLURQPHQW$FWEHIRUHDVWDWHPHQWRIFRPSOLDQFHLVLVVXHG7KHDJUHHPHQWPXVWSURYLGHIRUWKHIROORZLQJD $OOV\VWHPVPXVWEHGHVLJQHGE\DTXDOLILHGHQJLQHHUDQGPXVWEHDSSURYHGE\

WKHUHVSRQVLEOHDXWKRULW\EHIRUHFRQVWUXFWLRQE $OOV\VWHPVPXVWEHLQVWDOOHGEHIRUHRUFRQFXUUHQWO\ZLWKWKHGHYHORSPHQWRID

EXLOGLQJRQWKHVLWHF $OOV\VWHPVPXVWEHFRPSOHWHGEHIRUHWKH\DUHFRQQHFWHGWR&RXQFLOVGUDLQDJH

V\VWHPG $OOV\VWHPVPXVWEHPDLQWDLQHGE\WKHRZQHUDQGPXVWQRWEHPRGLILHGZLWKRXW

WKHZULWWHQDSSURYDORIWKHUHVSRQVLEOHDXWKRULW\H 7KHRZQHUPXVWDOORZDXWKRULVHG&RXQFLORIILFHUVWRLQVSHFWDQ\V\VWHPRQWKH

VLWHIURPWLPHWRWLPHI 7KHRZQHUPXVWSD\DOOFRVWVDVVRFLDWHGZLWKWKHFRQVWUXFWLRQDQGPDLQWHQDQFH

RIDQ\V\VWHPRQWKHVLWH

Page 37: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

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

&2/,%$1:$7(5D 7KH RZQHU LV UHTXLUHG WR SURYLGH UHWLFXODWHGZDWHU DQG VHZHUDJH VHUYLFHV WR

HDFK RI WKH ORWV ZLWKLQ WKH VXEGLYLVLRQ 6HUYLFHV DUH WR EH SURYLGHG LQDFFRUGDQFHZLWK&ROLEDQ:DWHU¶VVSHFLILFDWLRQV

E $OO&ROLEDQ:DWHUDVVHWVZLWKLQWKHVXEGLYLVLRQERWKH[LVWLQJDQGSURSRVHGDUHWREHSURWHFWHGE\DQHDVHPHQWLQIDYRXURI&ROLEDQ5HJLRQ:DWHU&RUSRUDWLRQ

32:(5&25D 7KH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ XQGHU WKH 6XEGLYLVLRQ $FW

VKDOOEHUHIHUUHGWR3RZHUFRU$XVWUDOLD/WGLQDFFRUGDQFHZLWK6HFWLRQRIWKDW$FW

E 7KHDSSOLFDQWVKDOO3URYLGHDQHOHFWULFLW\VXSSO\WRDOOORWVLQWKHVXEGLYLVLRQLQDFFRUGDQFH ZLWK 3RZHUFRU¶V UHTXLUHPHQWV DQG VWDQGDUGV LQFOXGLQJ WKHH[WHQVLRQ DXJPHQWDWLRQ RU UHDUUDQJHPHQW RI DQ\ H[LVWLQJ HOHFWULFLW\ VXSSO\V\VWHPDVUHTXLUHGE\3RZHUFRU$SD\PHQWWRFRYHUWKHFRVWRIVXFKZRUNZLOOEH UHTXLUHG ,Q WKH HYHQW WKDW D VXSSO\ LV QRW SURYLGHG WKH DSSOLFDQW VKDOOSURYLGH D ZULWWHQ XQGHUWDNLQJ WR 3RZHUFRU $XVWUDOLD /WG WKDW SURVSHFWLYHSXUFKDVHUVZLOOEHVRLQIRUPHG

F 7KHDSSOLFDQWVKDOO:KHUHEXLOGLQJVRURWKHULQVWDOODWLRQVH[LVWRQWKHODQGWREHVXEGLYLGHG DQG DUH FRQQHFWHG WR WKH HOHFWULFLW\ VXSSO\ WKH\ VKDOO EH EURXJKWLQWRFRPSOLDQFHZLWKWKH6HUYLFHDQG,QVWDOODWLRQ5XOHVLVVXHGE\WKH9LFWRULDQ(OHFWULFLW\ 6XSSO\ ,QGXVWU\ 7KH DSSOLFDQW VKDOO DUUDQJH FRPSOLDQFH WKURXJK D5HJLVWHUHG(OHFWULFDO&RQWUDFWRU

G 7KHDSSOLFDQWVKDOO3URYLGHWR3RZHUFRU$XVWUDOLD/WGDFRS\RIWKHYHUVLRQRIWKH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ ZKLFK VKRZV DQ\DPHQGPHQWVZKLFKKDYHEHHQUHTXLUHG

H $Q\EXLOGLQJVPXVWFRPSO\ZLWKWKHFOHDUDQFHVUHTXLUHGE\WKH(OHFWULFLW\6DIHW\1HWZRUN$VVHWV5HJXODWLRQV

I $Q\ FRQVWUXFWLRQ ZRUN PXVW FRPSO\ ZLWK WKH 2IILFHU RI WKH &KLHI (OHFWULFDO,QVSHFWRU1R*R=RQHUXOHV

7(/675$7KH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ PXVW EH UHIHUUHG WR 7HOVWUD LQDFFRUGDQFHZLWK6HFWLRQRIWKH6XEGLYLVLRQ$FW

7(1,;7KHSODQRI VXEGLYLVLRQVXEPLWWHG IRUFHUWLILFDWLRQPXVWEH UHIHUUHG WR63$XV1HW*DVLQDFFRUGDQFHZLWK6HFWLRQRIWKH6XEGLYLVLRQ$FW

'(3$570(172)6867$,1$%,/,7<$1'(19,5210(17$GMRLQLQJ&URZQODQG

Page 38: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7RSUHYHQW LPSDFWVRQDGMRLQLQJ&URZQ ODQGGHVFULEHGDV&URZQ$OORWPHQW=6HFWLRQ&3DULVKRI6DQGKXUVWWKHDSSOLFDQWPXVWHQVXUHD $OOZRUNVDUHWREHFRQWDLQHGZLWKLQWKHIUHHKROGODQGE 7KDWWKHUHLVQRUHPRYDORIQDWLYHYHJHWDWLRQIURPWKHDGMRLQLQJ&URZQODQGF 1R DFFHVV WR RU HJUHVV IURP WKH VXEMHFW ODQG LV SHUPLWWHG YLD WKH DGMRLQLQJ

&URZQODQGG $GMRLQLQJ&URZQODQGPXVWQRWEHXVHGIRUWUXFNWXUQLQJDUHDVSDUNLQJDUHDVRU

WHPSRUDU\VWDFNVLWHVGXULQJWKHFRQVWUXFWLRQRIEXLOGLQJVRUZRUNV

5XQRII1RSROOXWHGDQGRUVHGLPHQWODGHQUXQRIIRURWKHUFRQFHQWUDWHGIORZRIZDWHULVWREHGLVFKDUJHGGLUHFWO\RULQGLUHFWO\LQWRWKHDGMRLQLQJ&URZQODQG

&U /\RQV GHFODUHG D FRQIOLFW RI LQWHUHVW LQ WKH %XLOW DQG 1DWXUDO (QYLURQPHQW5HSRUW 1R 6XEGLYLVLRQ RI /DQG LQWR /RWV :RRGZDUG 5RDG *ROGHQ6TXDUHDVD UHODWLYHLVLQYROYHGZLWK WKHGHYHORSPHQW

&U/\RQVOHIWWKHPHHWLQJ

027,21

0RYHG&U&DPSEHOOVHFRQGHG&U)\IIH

7KDW WKH UHFRPPHQGDWLRQEHDGRSWHG VXEMHFW WR WKH LQVHUWLRQRIDQHZ&RQGLWLRQ DVIROORZVDQGUHQXPEHUWKHUHPDLQLQJFRQGLWLRQVDFFRUGLQJO\

$&2867,&75($70(17%HIRUHDVWDWHPHQWRIFRPSOLDQFHLVLVVXHGIRUWKHVXEGLYLVLRQD $Q $FRXVWLF 5HSRUW SUHSDUHG E\ D VXLWDEO\ TXDOLILHG DFRXVWLF VSHFLDOLVW PXVW EH

VXEPLWWHGWRDQGDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\7KHUHSRUWPXVWSURYLGHGHVLJQ GHWDLOV IRU DQ DFRXVWLF ERXQGDU\ IHQFH WKDW ZLOO SURWHFW WKH ORWV LQ WKHVXEGLYLVLRQIURPQRLVHJHQHUDWHGE\WKHDGMRLQLQJJUH\KRXQGNHHSLQJDFWLYLWLHV

E $Q DFRXVWLF ERXQGDU\ IHQFHPXVW EH FRQVWUXFWHG LQ DFFRUGDQFH ZLWK WKH GHVLJQGHWDLOV VSHFLILHG LQ WKH DSSURYHG $FRXVWLF 5HSRUW WR WKH VDWLVIDFWLRQ RI WKHUHVSRQVLEOHDXWKRULW\

&$55,('

&U/\RQVUHWXUQHGWRWKHPHHWLQJ

Page 39: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 40: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 41: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

68%',9,6,21 2) /$1' ,172 /276 $//,1*+$0 675((7 *2/'(1648$5(

'RFXPHQW,QIRUPDWLRQ

$XWKRU 6WHSKHQ:DLQZULJKW&RRUGLQDWRU6XEGLYLVLRQV

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJ'HYHORSPHQW'LUHFWRU

6XPPDU\3XUSRVH

7KLV SHUPLW DSSOLFDWLRQ VHHNV DSSURYDO WR FUHDWH D QHZ YDFDQW UHVLGHQWLDO ORW DW $OOLQJKDP 6WUHHW *ROGHQ 6TXDUH E\ ZD\ RI D WZR ORW VXEGLYLVLRQ 7KHUH LV RQHREMHFWLRQ WR WKHDSSOLFDWLRQ IURPDQHLJKERXULQJSURSHUW\RZQHUZKR LVFRQFHUQHG WKDWWKHVXEGLYLVLRQPD\UHVXOWLQRYHUORRNLQJSUREOHPV

7KLV UHSRUW DVVHVVHV WKHPHULWV RI WKH SURSRVHGVXEGLYLVLRQDQGGLVFXVVHG WKH LVVXHVUDLVHGE\WKHREMHFWRU7KHUHSRUWFRQFOXGHVWKDWWKHSURSRVDOFRPSOLHVZLWKWKH3ODQQLQJ6FKHPH

3ROLF\&RQWH[W

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ± XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW6WUDWHJLF2EMHFWLYHV

9DOXHFRQVHUYHDQGHQKDQFHWKHULFKEXLOWDQGQDWXUDOKHULWDJH$FKLHYHKLJKTXDOLW\RXWFRPHVLQSODQQLQJDQGSROLF\DFWLYLWLHV(QFRXUDJHDQGIRVWHUKLJKTXDOLW\GHVLJQWRFUHDWHHQYLURQPHQWVWKDWVXSSRUWSXEOLFZHOOEHLQJDQGHFRQRPLFVXFFHVV

5HSRUW

$SSOLFDWLRQ1R '6

$SSOLFDWLRQ'DWH 0D\

$SSOLFDQW &DUVRQ6LPSVRQ3W\/WG

/DQG $OOLQJKDP6WUHHW*2/'(1648$5(

=RQLQJ 5HVLGHQWLDO=RQH$EXWWDOWRD5RDG=RQH&DWHJRU\+DWWDP6WUHHW

2YHUOD\V 1LO

6XEMHFW6LWHDQG6XUURXQGV

7KHVLWHLVORFDWHGLQ*ROGHQ6TXDUHDSSUR[LPDWHO\PHDVWRI+LJK6WUHHW7KHVLWHFRQVLVWVRIDOO WKH ODQGVKRZQDV/RWRQ3ODQRI6XEGLYLVLRQ/3 7KHVLWH LVDFRUQHUORWZLWKDEXWWDOVWR$OOLQJKDP6WUHHWDQG+DWWDP6WUHHW7KHVLWHFRYHUVDQDUHDRIP

Page 42: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$ VLQJOH VWRUH\ EULFN DQG UHQGHU GZHOOLQJRFFXSLHV WKH VLWH 7KHUH LV D FDUSRUW RQ WKHQRUWKVLGHRI WKHGZHOOLQJZKLFK LVDFFHVVHGYLD$OOLQJKDP6WUHHW$WWDFKHG WR WKHHDVWVLGHRIWKHPDLQGZHOOLQJLVDJDEOHURRIH[WHQVLRQ7KHUHDUHVHYHUDORXWEXLOGLQJVZLWKLQWKHUHDU\DUGRIWKHVLWH6FDWWHUHGJDUGHQSODQWLQJVDUHSUHVHQWRQWKHVLWH

$GMRLQLQJ WKH QRUWK ERXQGDU\ RI WKH VLWH LV 1R $OOLQJKDP 6WUHHW D VLQJOH VWRUH\UHVLGHQFH$VLQJOHVWRUH\GZHOOLQJLVDOVRORFDWHGWRWKHHDVWRIWKHVLWHDW1R+DWWDP6WUHHW

)LJXUH$ORFDWLRQPDSVKRZLQJWKHVXEMHFWVLWH$VWDUVKRZVWKHREMHFWRUVSURSHUW\

3URSRVDO

,WLVSURSRVHGWRVXEGLYLGHWKHUHDUSDUWRIWKHVLWHIURPWKHH[LVWLQJGZHOOLQJWRFUHDWHDQHZYDFDQWORWVKRZQRQWKHSODQDV/RW7KHQHZYDFDQWORWZLOOEHLQWKHIRUPRIDEDWWOHD[HZLWKDPIURQWDJHWR$OOLQJKDP6WUHHWDQGDPIURQWDJHWR+DWWDP6WUHHW7KH QHZ ORWZLOO EH P 9HKLFOH DFFHVV WR WKH QHZ ORWZLOO EH YLD$OOLQJKDP6WUHHW9LF5RDGVKDVSURKLELWHGDQ\YHKLFOHDFFHVVIURP+DWWDP6WUHHW

3ODQQLQJ&RQWUROV *UHDWHU%HQGLJR3ODQQLQJ6FKHPH

7KHVLWHLVLQWKH5HVLGHQWLDO=RQHDQGDEXWVD5RDG=RQH&DWHJRU\+DWWDP6WUHHW1RRYHUOD\VFRYHUWKHVLWH7KHSURSRVHGVXEGLYLVLRQRIWKHVLWHWULJJHUVWKHQHHGIRUDSHUPLW SXUVXDQW WR WKH]RQHSURYLVLRQVDQGFODXVH LQ WKHSODQQLQJVFKHPH7KHIROORZLQJFODXVHVLQWKHSODQQLQJVFKHPHDUHUHOHYDQWWRWKHDSSOLFDWLRQ

6WDWH3ODQQLQJ3ROLF\)UDPHZRUN

y 5HJLRQDOGHYHORSPHQWFODXVHy 8UEDQHQYLURQPHQWFODXVHy 6XVWDLQDEOHGHYHORSPHQWFODXVHy 5HVLGHQWLDOGHYHORSPHQWFODXVHy 0RYHPHQWQHWZRUNVFODXVH

Page 43: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

y 'HYHORSPHQWLQIUDVWUXFWXUHFODXVH

0XQLFLSDO6WUDWHJLF6WDWHPHQW

y 0XQLFLSDOSURILOHFODXVHy .H\LVVXHVDQGLQIOXHQFHVFODXVHy 9LVLRQ VWUDWHJLFIUDPHZRUNFODXVHy 6WUDWHJLFGLUHFWLRQVFODXVHy 6HWWOHPHQWFODXVHy +RXVLQJFODXVHy 5HIHUHQFHGRFXPHQWVFODXVH

/RFDO3ODQQLQJ3ROLFLHV

y 6DOLQLW\DQGHURVLRQULVNSROLF\FODXVHy *ROGHQ6TXDUHUHVLGHQWLDOFKDUDFWHUSROLF\*6FODXVH

2WKHU3URYLVLRQV

y 5HVLGHQWLDO=RQHFODXVHy /DQG DGMDFHQW WR D URDG ]RQH FDWHJRU\ RU D SXEOLF DFTXLVLWLRQ RYHUOD\ IRU D

FDWHJRU\URDGFODXVHy 5HVLGHQWLDOVXEGLYLVLRQFODXVHy 'HFLVLRQJXLGHOLQHVFODXVHy 5HIHUUDODQGQRWLFHSURYLVLRQVFODXVH

&RQVXOWDWLRQ&RPPXQLFDWLRQ

5HIHUUDOV

7KHIROORZLQJDXWKRULWLHV DQGLQWHUQDOGHSDUWPHQWVKDYHEHHQFRQVXOWHGRQWKHSURSRVDO

5HIHUUDO &RPPHQW

&ROLEDQ:DWHU 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

3RZHUFRU 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

7HOVWUD 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

7HQL[ 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

9LF5RDGV 1RREMHFWLRQ

$VVHW3ODQQLQJ'HVLJQLQWHUQDO 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

3XEOLF1RWLILFDWLRQ

7KHDSSOLFDWLRQZDVDGYHUWLVHGWRWKHSXEOLFE\PDLODQGRQVLWHQRWLFHV2QHSHUVRQKDVREMHFWHG WR D SHUPLW EHLQJJUDQWHG EHFDXVH RI FRQFHUQV DERXW SULYDF\ WKH ORVV RI DQH[LVWLQJ WUHH RQ WKH VLWH DQG WKH VXEGLYLVLRQ OD\RXW 7KH JURXQGV RI REMHFWLRQ DUHGLVFXVVHGODWHULQWKLVUHSRUW

Page 44: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3ODQQLQJ$VVHVVPHQW

$PHQGHGSODQ

,WLVRIQRWHWKDWWKHDSSOLFDWLRQRULJLQDOO\HQYLVDJHGDWKUHH ORWVXEGLYLVLRQZLWKRQHRIWKHORWV JDLQLQJ YHKLFXODU DFFHVV VROHO\ IURP +DWWDP 6WUHHW 7KLV SODQ ZDV UHMHFWHG E\9LF5RDGVDQGDVDUHVXOWWKHSURSRVDOZDVDPHQGHGWRDWZRORWVXEGLYLVLRQ9LF5RDGVFRQVHQWVWRWKHDPHQGHG DSSOLFDWLRQ

3RWHQWLDOIRURYHUORRNLQJ

7KHJURXQGVRIREMHFWLRQHVVHQWLDOO\FHQWUHRQWKHLVVXHRIYLVXDOSULYDF\7KHREMHFWRUVSURSHUW\ DGMRLQV WKH VXEMHFW VLWH DQG WKH REMHFWRU LV FRQFHUQHG WKDW DQ\ QHZ GZHOOLQJFRQVWUXFWHG RQ SURSRVHG /RW ZLOO UHVXOW LQ RYHUORRNLQJ SUREOHPV 7KH FRQFHUQV DUHH[DFHUEDWHG E\ WKH SRWHQWLDO ORVV RI D WUHH RQ WKH VXEMHFW VLWH WKDW FXUUHQWO\ SURYLGHVVRPHVFUHHQLQJEHWZHHQWKHSURSHUWLHV

,Q WKH DEVHQFH RI D GZHOOLQJGHVLJQ IRU /RW LW LV QRW SRVVLEOH WR GHWHUPLQH SUHFLVHO\ZKHWKHURYHUORRNLQJZLOORFFXU WRZDUGV WKHREMHFWRUVSURSHUW\6XIILFH WRVD\DQ\QHZGZHOOLQJ FRQVWUXFWHG RQ /RW ZLOO QHHG WR FRPSO\ ZLWK 5HVFRGH VWDQGDUGV UHODWLQJ WRYLVXDO SULYDF\ 7KH UHOHYDQW EXLOGLQJ VXUYH\RU ZLOO EH UHVSRQVLEOH IRU DVVHVVLQJ DQ\KRXVHGHVLJQIRUFRPSOLDQFHZLWK5HVFRGHDVSDUWRIWKHEXLOGLQJSHUPLWSURFHVV

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

&RPSOLDQFHZLWKFODXVH

7KHUHVLGHQWLDOVXEGLYLVLRQSURYLVLRQVLQFODXVHRIWKHSODQQLQJVFKHPHDSSO\WR WKHDSSOLFDWLRQ7KHSURSRVHGVXEGLYLVLRQFRPSOLHVZLWKDOOWKHREMHFWLYHV LQWKHFODXVHDQGLQSDUWLFXODU

y 7KHVLWHLVFORVHWRWKH*ROGHQ6TXDUHVKRSSLQJFHQWUH7KHVLWHZLOOEHVHUYLFHGE\DEXV URXWH 7KHUH DUH DOVR SDUNV DQG FRPPXQLW\ IDFLOLWLHV QHDU WKH VLWH 7KH VLWH LVDSSURSULDWHO\]RQHGIRUUHVLGHQWLDOSXUSRVHVDQGLWLVVLWXDWHGZLWKLQ%HQGLJRVXUEDQJURZWKERXQGDU\

y 7KH QHZ YDFDQW ORW ZLOO EH IXOO\ VHUYLFHG E\ UHWLFXODWHG VHZHUDJH DQG ZDWHU(OHFWULFLW\WHOHFRPPXQLFDWLRQVDQGJDVZLOODOVREHVXSSOLHGWRWKHORW

y 7KHQHZYDFDQWORWZLOOEHODUJHHQRXJKWRHDVLO\FRQWDLQDUHFWDQJOHPHDVXULQJPE\P7KH ORWZLOOHQMR\ JRRG RSSRUWXQLWLHV IRU QRUWKHUQ OLJKW 7KH ORW OD\RXW DQGGHQVLW\ ZLOO EH LQ NHHSLQJ ZLWK WKH SUHIHUUHG QHLJKERXUKRRG FKDUDFWHU DQG LVFRPSDUDEOHWRRWKHUORWGHQVLWLHVLQWKHLPPHGLDWHDUHD

Page 45: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&RQFOXVLRQ

)RU WKH UHDVRQVGLVFXVVHGDERYH LW LV FRQFOXGHG WKDW WKHSHUPLWDSSOLFDWLRQPHHWV WKHUHTXLUHPHQWVRIWKHSODQQLQJVFKHPHDQGRQWKLVEDVLVDSHUPLWVKRXOGEHJUDQWHG

2SWLRQV

&RXQFLODFWLQJDVWKHUHVSRQVLEOHDXWKRULW\IRUDGPLQLVWHULQJWKHSODQQLQJVFKHPHPD\UHVROYH WR JUDQW D SHUPLW JUDQW D SHUPLW VXEMHFW WR FRQGLWLRQV RU UHIXVH WR JUDQW DSHUPLW

$WWDFKPHQWV

2EMHFWLRQ

5(&200(1'$7,21

3XUVXDQW WR VHFWLRQ RI WKH 3ODQQLQJ DQG (QYLURQPHQW $FW *UHDWHU %HQGLJR&LW\&RXQFLOUHVROYHWRLVVXHD1RWLFHRI'HFLVLRQWR*UDQWD3HUPLWWRVXEGLYLGHWKHODQGDW$OOLQJKDP6WUHHW*ROGHQ6TXDUHLQWRWZRORWVVXEMHFWWRWKHIROORZLQJFRQGLWLRQV

3/$1672%((1'256('7KH SODQV WR EH HQGRUVHG DQG ZKLFKZLOO WKHQ IRUP SDUW RI WKH SHUPLW DUH WKHSODQVVXEPLWWHGZLWKWKHDSSOLFDWLRQ

/$<2873/$167KHVXEGLYLVLRQDVVKRZQRQ WKHHQGRUVHGSODQVPXVWQRWEHDOWHUHGZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKHUHVSRQVLEOHDXWKRULW\

5(029$/2)287%8,/',1*6%HIRUHDVWDWHPHQWRIFRPSOLDQFHLVLVVXHGIRUWKHVXEGLYLVLRQDOORXWEXLOGLQJVRQWKHVLWHPXVWEHUHPRYHGH[FHSWIRUDQ\RXWEXLOGLQJZKROO\FRQWDLQHGZLWKLQWKHERXQGDULHVRI/RW

'(7$,/(''5$,1$*(3ULRUWRWKHFHUWLILFDWLRQRIWKHSODQRIVXEGLYLVLRQXQGHUWKH6XEGLYLVLRQ$FWSODQV WR WKH VDWLVIDFWLRQRI WKH UHVSRQVLEOH DXWKRULW\PXVW EH VXEPLWWHG WR DQGDSSURYHG E\ WKH UHVSRQVLEOH DXWKRULW\ :KHQ DSSURYHG WKH SODQV ZLOO EHHQGRUVHGDQGWKHQZLOOIRUPSDUWRIWKHSHUPLW7KHSODQVPXVWEHGUDZQWRVFDOHZLWKGLPHQVLRQV7KHSODQVPXVWLQFOXGHD 'LUHFWLRQRIVWRUPZDWHUUXQRIIE $SRLQWRIGLVFKDUJHIRUHDFKORWF ,QGHSHQGHQWGUDLQDJHIRUHDFKORW

67250:$7(5'(7(17,213ULRU WR WKH LVVXH RI D VWDWHPHQW RI FRPSOLDQFH WKH RZQHU RU DSSOLFDQW PXVWSURYLGH RQVLWH VXUIDFH DQG VWRUPZDWHU GHWHQWLRQ WR SUHGHYHORSPHQW OHYHOV LQDFFRUGDQFH ZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOHDXWKRULW\

Page 46: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KH5HVSRQVLEOH$XWKRULW\PD\GHHPWKLVFRQGLWLRQVDWLVILHGE\DGHYHORSPHQWFRQWULEXWLRQ WRZDUGV WKHDFFHSWDQFH RI VXUIDFH DQG VWRUPZDWHU GLVFKDUJH IURPWKH DSSURYHG VXEGLYLVLRQ EXLOGLQJ DQGRU ZRUNV ZKHWKHU RU QRW VXFK QHZGUDLQDJH LQIUDVWUXFWXUHKDVEHHQRUZLOOEHVLWXDWHGZLWKLQWKHERXQGDULHVRIWKHVXEMHFWODQG6XFKDPRXQWLVDVVHVVHGDVRUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

67250:$7(548$/,7<%HIRUH WKH XVH RU GHYHORSPHQW LV FRPPHQFHG WKH RZQHU RU DSSOLFDQW PXVWSURYLGH D VWRUPZDWHU WUHDWPHQW V\VWHP WR DFKLHYH WKH %HVW 3UDFWLFH(QYLURQPHQWDO *XLGHOLQHV VWRUP ZDWHU TXDOLW\ 9LFWRULD 6WRUPZDWHU &RPPLWWHH LQ DFFRUGDQFH ZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKHUHVSRQVLEOHDXWKRULW\

7KH5HVSRQVLEOH$XWKRULW\PD\GHHPWKLVFRQGLWLRQVDWLVILHGE\DGHYHORSPHQWFRQWULEXWLRQWRZDUGVWKHWUHDWPHQWRIVXUIDFHDQGVWRUPZDWHUGLVFKDUJH IURPWKHDSSURYHG VXEGLYLVLRQ EXLOGLQJ DQGRU ZRUNV ZKHWKHU RU QRW VXFK QHZVWRUPZDWHU WUHDWPHQW LQIUDVWUXFWXUH KDV EHHQ RU ZLOO EH VLWXDWHG ZLWKLQ WKHERXQGDULHV RI WKH VXEMHFW ODQG RU LWV LPPHGLDWH FDWFKPHQW 6XFK DPRXQW LVDVVHVVHGDVRUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

'5$,1$*(:25.63ULRU WR WKH LVVXH RI WKH VWDWHPHQW RI FRPSOLDQFH IRU WKH VXEGLYLVLRQ GUDLQDJHZRUNVPXVWEHFRQVWUXFWHGLQDFFRUGDQFHZLWKSODQVDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\

6(&7,21$*5((0(17,IDVWRUPZDWHUGHWHQWLRQV\VWHPRUDZDWHUTXDOLW\WUHDWPHQWV\VWHPLVLQVWDOOHGRQ WKH VLWH WKH RZQHU PXVW HQWHU LQWR DQ DJUHHPHQW ZLWK WKH UHVSRQVLEOHDXWKRULW\XQGHU6HFWLRQRIWKH3ODQQLQJDQG(QYLURQPHQW$FWEHIRUHDVWDWHPHQWRIFRPSOLDQFHLVLVVXHG7KHDJUHHPHQWPXVWSURYLGHIRUWKHIROORZLQJD $OOV\VWHPVPXVWEHGHVLJQHGE\DTXDOLILHGHQJLQHHUDQGPXVWEHDSSURYHG

E\WKHUHVSRQVLEOHDXWKRULW\EHIRUHFRQVWUXFWLRQE $OOV\VWHPVPXVWEHLQVWDOOHGEHIRUHRUFRQFXUUHQWO\ZLWKWKHGHYHORSPHQWRI

DEXLOGLQJRQWKHVLWHF $OO V\VWHPV PXVW EH FRPSOHWHG EHIRUH WKH\ DUH FRQQHFWHG WR &RXQFLOV

GUDLQDJHV\VWHPG $OO V\VWHPV PXVW EH PDLQWDLQHG E\ WKH RZQHU DQG PXVW QRW EH PRGLILHG

ZLWKRXWWKHZULWWHQDSSURYDORIWKHUHVSRQVLEOHDXWKRULW\H 7KHRZQHUPXVWDOORZDXWKRULVHG&RXQFLORIILFHUV WR LQVSHFWDQ\V\VWHPRQ

WKHVLWHIURPWLPHWRWLPHI 7KH RZQHU PXVW SD\ DOO FRVWV DVVRFLDWHG ZLWK WKH FRQVWUXFWLRQ DQG

PDLQWHQDQFHRIDQ\V\VWHPRQWKHVLWH

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

Page 47: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

VXEMHFWODQGPXVWSD\IRUDQ\GDPDJHFDXVHGWRDQ\SXEOLFLQIUDVWUXFWXUHFDXVHGDVDUHVXOWRIWKHGHYHORSPHQWRUXVHSHUPLWWHGE\WKLVSHUPLW

&2/,%$1:$7(5D 7KHRZQHULVUHTXLUHGWRSURYLGHUHWLFXODWHGZDWHUDQGVHZHUDJH VHUYLFHVWR

HDFK RI WKH ORWV ZLWKLQ WKH VXEGLYLVLRQ 6HUYLFHV DUH WR EH SURYLGHG LQDFFRUGDQFHZLWK&ROLEDQ:DWHU¶VVSHFLILFDWLRQV

E $OO&ROLEDQ:DWHUDVVHWVZLWKLQWKHVXEGLYLVLRQERWKH[LVWLQJDQGSURSRVHGDUH WR EH SURWHFWHG E\ DQ HDVHPHQW LQ IDYRXU RI &ROLEDQ 5HJLRQ :DWHU&RUSRUDWLRQ

32:(5&25D 7KHSODQRIVXEGLYLVLRQVXEPLWWHG IRUFHUWLILFDWLRQXQGHU WKH6XEGLYLVLRQ$FW

VKDOOEHUHIHUUHGWR3RZHUFRU$XVWUDOLD/WGLQDFFRUGDQFHZLWK6HFWLRQRIWKDW$FW

E 7KHDSSOLFDQWVKDOO3URYLGHDQHOHFWULFLW\VXSSO\WRDOOORWVLQWKHVXEGLYLVLRQLQ DFFRUGDQFH ZLWK 3RZHUFRU¶V UHTXLUHPHQWV DQG VWDQGDUGV LQFOXGLQJ WKHH[WHQVLRQDXJPHQWDWLRQRU UHDUUDQJHPHQWRIDQ\H[LVWLQJHOHFWULFLW\VXSSO\V\VWHPDVUHTXLUHGE\3RZHUFRU$SD\PHQWWRFRYHUWKHFRVWRIVXFKZRUNZLOOEHUHTXLUHG,QWKHHYHQWWKDWDVXSSO\LVQRWSURYLGHGWKHDSSOLFDQWVKDOOSURYLGH D ZULWWHQ XQGHUWDNLQJ WR 3RZHUFRU $XVWUDOLD /WG WKDW SURVSHFWLYHSXUFKDVHUVZLOOEHVRLQIRUPHG

F 7KHDSSOLFDQWVKDOO:KHUHEXLOGLQJVRU RWKHULQVWDOODWLRQVH[LVWRQWKHODQGWREH VXEGLYLGHG DQG DUH FRQQHFWHG WR WKH HOHFWULFLW\ VXSSO\ WKH\ VKDOO EHEURXJKWLQWRFRPSOLDQFHZLWKWKH6HUYLFHDQG,QVWDOODWLRQ5XOHVLVVXHGE\WKH9LFWRULDQ(OHFWULFLW\6XSSO\,QGXVWU\7KHDSSOLFDQWVKDOODUUDQJHFRPSOLDQFHWKURXJKD5HJLVWHUHG(OHFWULFDO&RQWUDFWRU

G 7KHDSSOLFDQWVKDOO3URYLGHWR3RZHUFRU$XVWUDOLD/WGDFRS\RIWKHYHUVLRQRI WKH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQ ZKLFK VKRZV DQ\DPHQGPHQWVZKLFKKDYHEHHQUHTXLUHG

H $Q\ EXLOGLQJV PXVW FRPSO\ ZLWK WKH FOHDUDQFHV UHTXLUHG E\ WKH (OHFWULFLW\6DIHW\1HWZRUN$VVHWV5HJXODWLRQV

I $Q\ FRQVWUXFWLRQ ZRUNPXVW FRPSO\ ZLWK WKH 2IILFHU RI WKH &KLHI (OHFWULFDO,QVSHFWRU1R*R=RQHUXOHV

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U&DPSEHOO

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 48: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 49: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 50: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

/2768%',9,6,21 %$.(:(//675((71257+%(1',*2

'RFXPHQW,QIRUPDWLRQ

$XWKRU /L]&RPPDGHXU6XEGLYLVLRQ3ODQQHU

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJ'HYHORSPHQW'LUHFWRU

6XPPDU\3XUSRVH

7KLV DSSOLFDWLRQ VHHNV DSSURYDO IRU D WZR ORW VXEGLYLVLRQ DW %DNHZHOO6WUHHW 1RUWK%HQGLJR,WLVSURSRVHGWRVXEGLYLGHWKHVLGH\DUGRIIIURPWKHH[LVWLQJGZHOOLQJWRFUHDWHDQHZYDFDQW ORWVXLWDEOHIRUDGZHOOLQJ2QHQHLJKERXUKDVREMHFWHGWRWKHVXEGLYLVLRQSULQFLSDOO\EHFDXVHRIFRQFHUQVDERXWDPHQLW\DQG GUDLQDJHLVVXHV

7KH VLWH LV ZLWKLQ %HQGLJR¶V 8UEDQ *URZWK %RXQGDU\ DQG LV ]RQHG IRU UHVLGHQWLDOSXUSRVHV ,W LVFRQVLGHUHGWKDW WKHVXEGLYLVLRQPHHWVWKHUHTXLUHPHQWVRI WKH3ODQQLQJ6FKHPHDQGDSHUPLWVKRXOGEHJUDQWHG

3ROLF\&RQWH[W

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ± XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW6WUDWHJLF2EMHFWLYHV

9DOXHFRQVHUYHDQGHQKDQFHWKHULFKEXLOWDQGQDWXUDOKHULWDJH$FKLHYHKLJKTXDOLW\RXWFRPHVLQSODQQLQJDQGSROLF\DFWLYLWLHV(QFRXUDJHDQGIRVWHUKLJKTXDOLW\GHVLJQWRFUHDWHHQYLURQPHQWVWKDWVXSSRUWSXEOLFZHOOEHLQJDQGHFRQRPLFVXFFHVV

5HSRUW

$SSOLFDWLRQ1R '6

$SSOLFDWLRQ'DWH 6HSWHPEHU

$SSOLFDQW -3*DYLQ

/DQG %DNHZHOO6WUHHW1257+%(1',*2

=RQLQJ 5HVLGHQWLDO=RQH

2YHUOD\V 7KHUHDUHQRRYHUOD\V

6XEMHFW6LWH DQG6XUURXQGV

7KHVXEMHFWVLWHLVORFDWHG LQDQHVWDEOLVKHGUHVLGHQWLDODUHDRI%DNHZHOO6WUHHW7KHVLWHLV JHQHUDOO\ UHFWDQJXODU LQ VKDSH ZLWK DQ DUHD RI VTXDUH PHWUHV $Q H[LVWLQJGZHOOLQJLVORFDWHGRQWKHQRUWKHUQSRUWLRQRIWKHVLWH

Page 51: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

6HUYLFHV LQFOXGLQJUHWLFXODWHGZDWHUDQGVHZHUDJHSRZHUDQG WHOHFRPPXQLFDWLRQVDUHFRQQHFWHGWRWKHVLWH%DNHZHOO6WUHHW LVDGLYLGHGURDGZKLFKLVVHDOHGZLWKNHUEDQGFKDQQHO7KHUHLVQRIRUPDOIRRWSDWKDORQJWKHVLWHIURQWDJH

/RW VL]HV LQ WKH DUHD UDQJH IURP VTXDUH PHWUHV WR VTXDUH PHWUHV 7KHGZHOOLQJV LQ WKHDUHD WHQG WREHPRGHVW VL]HG IDPLO\KRPHVZLWK UHDVRQDEOH IURQWDQGVLGHVHWEDFNV7KHVLWHLVORFDWHGZLWKLQFORVHSUR[LPLW\WRWKH&HQWUDO%XVLQHVV'LVWULFW1RUWK%HQGLJR3ULPDU\6FKRRO%HQGLJR+RVSLWDODQGUHFUHDWLRQIDFLOLWLHV

)LJXUH/RFDWLRQPDSVKRZLQJVXEMHFWVLWH2EMHFWRU¶VSURSHUW\ PDUNHGZLWKDVWDU

3URSRVDO

7KH DSSOLFDQW VHHNV DSSURYDO IRU D WZR ORW VXEGLYLVLRQ DW %DNHZHOO 6WUHHW 1RUWK%HQGLJRWLVSURSRVHGWRVXEGLYLGHWKHVLGH\DUGRIIIURPWKHH[LVWLQJGZHOOLQJWRFUHDWHDQHZYDFDQW ORWVXLWDEOH IRUDGZHOOLQJ 7KHDUHDRI/RWZLOOEHVTXDUHPHWUHVZLWKDPHWUHZLGHIURQWDJHWR%DNHZHOO6WUHHW7KHDUHDRI/RWZLOOEHVTXDUHPHWUHVZLWKDPHWUHZLGHIURQWDJHWR%DNHZHOO6WUHHW /RWDQG/RWZLOOXWLOLVHWKH H[LVWLQJ GULYHZD\V IRU DFFHVV 7KH ORWVZRXOG EH IXOO\ VHUYLFHG )RXU QRQQDWLYHWUHHVZLOOEHUHPRYHGIURPWKHVRXWKZHVWHUQVLGHRIWKHVLWH

3ODQQLQJ&RQWUROV *UHDWHU%HQGLJR3ODQQLQJ6FKHPH

7KHVLWHLVLQWKH5HVLGHQWLDO =RQH$SHUPLW LVUHTXLUHGWRVXEGLYLGH ODQGSXUVXDQWWRWKH=RQHFRQWUROV

7KHIROORZLQJSURYLVLRQVRIWKH&LW\RI*UHDWHU%HQGLJR3ODQQLQJ6FKHPHDUHUHOHYDQWWRWKHDSSOLFDWLRQ

Page 52: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

6WDWH3ODQQLQJ3ROLF\)UDPHZRUN

5HJLRQDOGHYHORSPHQWFODXVH6RLOGHJUDGDWLRQFODXVH8UEDQHQYLURQPHQWFODXVH6XVWDLQDEOHGHYHORSPHQWFODXVH,QWHJUDWHGWUDQVSRUWFODXVH0RYHPHQWQHWZRUNVFODXVH

0XQLFLSDO6WUDWHJLF6WDWHPHQW

0XQLFLSDOSURILOHFODXVH.H\LVVXHVDQGLQIOXHQFHVFODXVH9LVLRQ VWUDWHJLFIUDPHZRUNFODXVH6WUDWHJLFGLUHFWLRQVFODXVH6HWWOHPHQWFODXVH+RXVLQJFODXVH(QYLURQPHQWFODXVH,QIUDVWUXFWXUHFODXVH5HIHUHQFHGRFXPHQWVFODXVH

/RFDO3ODQQLQJ3ROLFLHV

6DOLQLW\DQGHURVLRQULVNSROLF\FODXVH1RUWK%HQGLJR7RZQVKLSUHVLGHQWLDOFKDUDFWHUSROLF\FODXVH

2WKHUUHOHYDQWSURYLVLRQV

5HVLGHQWLDOVXEGLYLVLRQFODXVH'HFLVLRQJXLGHOLQHVFODXVH5HIHUUDODQGQRWLFHSURYLVLRQVFODXVH

&RQVXOWDWLRQ&RPPXQLFDWLRQ

5HIHUUDOV

7KHIROORZLQJLQWHUQDOGHSDUWPHQWKDVEHHQFRQVXOWHGRQWKHSURSRVDO

5HIHUUDO &RPPHQW

'UDLQDJH 1RREMHFWLRQ VXEMHFWWRFRQGLWLRQV

3XEOLF1RWLILFDWLRQ

7KHDSSOLFDWLRQZDVDGYHUWLVHG E\ZD\RIQRWLFHRQWKHVLWHDQGOHWWHUV WRDGMRLQLQJDQGQHDUE\RZQHUVDQGRFFXSLHUV

$V D UHVXOW RI DGYHUWLVLQJ RQH REMHFWLRQ ZDV UHFHLYHG ZLWK WKH JURXQGV RI REMHFWLRQEHLQJ

'UDLQDJHLVVXHV

5HPRYDORIDVEHVWRV

Page 53: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$PHQLW\LVVXHV

7KHREMHFWLRQVDUHGLVFXVVHGEHORZ

3ODQQLQJ$VVHVVPHQW

1HLJKERXUKRRG&KDUDFWHU

7KH VLWH LV ORFDWHGZLWKLQ3UHFLQFW RI WKH1RUWK %HQGLJR UHVLGHQWLDO FKDUDFWHU SROLF\7KHSUHFLQFWLVGHVFULEHGDV

³«$QDUHDRIKRXVLQJPRVWO\EXLOWIURPWKHVLQZKLFKURRIVKDSHVDUHRIWHQLPSRUWDQW DV WKH\ SURYLGH D FRQVLVWHQW WKHPH 7KH KRUL]RQWDO HPSKDVLV RI WKHGZHOOLQJ IRUP UHVXOWV IURP WKH ORQJ ORZHOHYDWLRQVRI WKHEXLOGLQJV LQ UHODWLRQ WRWKHLUKHLJKW 7KHPRGHVW IURQWVHWEDFNVOHQGDQLQWLPDF\DQGFRQVLVWHQF\WR WKHDUHD /RZ RU WUDQVSDUHQW IURQW IHQFHV FUHDWH DQ RSHQ IHHO WR WKH VWUHHWVFDSH0DWXUH EXW ORZ OHYHO JDUGHQV PRVWO\ H[RWLF DQG ZLGH QDWXUH VWULSV LQ VRPHVWUHHWVSURYLGHDSOHDVDQW JDUGHQVXEXUEFKDUDFWHU´

7KHGHVLUHGIXWXUHFKDUDFWHUIRUWKHSUHFLQFWLVWRPDLQWDLQWKHJDUGHQVXEXUEFKDUDFWHUKRUL]RQWDOLW\DQGDUWLFXODWLRQRIWKHGZHOOLQJVDQGWKHRSHQQHVVRIWKHVWUHHWVFDSH

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

,W LV SURSRVHG WR VXEGLYLGH WKH VRXWK ZHVWHUQ SDUW RI WKH \DUG RII IURP WKH H[LVWLQJGZHOOLQJ WR FUHDWH D QHZYDFDQW ORW VXLWDEOH IRU D GZHOOLQJ 7KHUH DUH IRXU ODUJHQRQQDWLYH WUHHVDQG WZRVKHGV ORFDWHG LQ WKHVRXWKZHVWHUQFRUQHU $W OHDVW WZRRI WKHVHWUHHVDQGWKHVKHGVZLOOQHHG WREH UHPRYHGWRDOORZ WKHFRQVWUXFWLRQRIDGZHOOLQJRQ/RW

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

+DYLQJUHJDUG WR WKHVLWHGHVFULSWLRQDQG WKHGHVLJQUHVSRQVH LW LVFRQVLGHUHGWKDW WKHSURSRVHG VXEGLYLVLRQ LV LQ NHHSLQJ ZLWK WKH QHLJKERXUKRRG FKDUDFWHU IRU WKH IROORZLQJUHDVRQV

Page 54: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7ZR VKHGV H[LVW RQ WKH SURSRVHG ORW VR WKH VWUHHWVFDSH DOUHDG\ ³DFFHSWV´ DEXLOGLQJRIVRPHIRUPRQWKLVSDUWRIWKHODQG

7KHVWUHHWVFDSHFXUUHQWO\UHIOHFWVDVHQVHRIVSDFLRXVQHVVZLWKJHQHURXVIURQWDQGVLGH VHWEDFNV DQG ORZ IHQFHV 7KLV VHQVH RI VSDFLRXVQHVV ZLOO QRW EHFRPSURPLVHG DV DQ\ IXWXUH GHYHORSPHQW RQ /RW FDQ EH ORFDWHG WR DOORZ IRUDSSURSULDWHVLGHDQGIURQWVHWEDFNV$SURSRVHGEXLOGLQJHQYHORSHZLOOHQVXUHWKDWDQ\QHZGZHOOLQJLVORFDWHGVRDVWRPHHWWKHVHWEDFNUHTXLUHPHQWVRI5HVFRGH

7KHVKDSHDQGVL]HRI/RWOHQGVLWVHOIWRIXUWKHUGHYHORSPHQW7KLVLVEHFDXVHWKHZLGWKRI/RWSURYLGHVUHDVRQDEOHIURQWDJHWR%DNHZHOO6WUHHWZKLOHWKHGHSWKRIWKHORWLVJHQHURXVDOORZLQJDGZHOOLQJWREHVHWEDFNPHWUHVIURPWKHVWUHHW

:KLOVWWKHORVVRIVRPHRUDOORIWKHQRQQDWLYHWUHHVIURPWKHVLWHZLOOXQGRXEWHGO\DOWHUWKHVWUHHWVFDSHWRDFHUWDLQGHJUHHWKHUHLVSRWHQWLDOIRUWKHRZQHUVRI/RWWRFRQVWUXFW D GZHOOLQJ DQG HVWDEOLVK D JDUGHQ ZKLFK ZLOO UHVSHFW WKH H[LVWLQJVWUHHWVFDSHLQWKHIXWXUH

7KH SURSRVHG VXEGLYLVLRQ ZLOO JHQHUDOO\ LQWHJUDWH ZLWK WKH VXUURXQGLQJQHLJKERXUKRRG

$PHQLW\

7KH REMHFWRU LV FRQFHUQHG DERXW SRWHQWLDO RYHUORRNLQJ DQG RYHUVKDGRZLQJ RI WKHLUSURSHUW\DW%DNHZHOO6WUHHW,IDVLQJOHVWRUH\GZHOOLQJZDVFRQVWUXFWHGRYHUORRNLQJLVVXHVDUHXQOLNHO\,WLVWUXHWKDWLIDGRXEOHVWRUH\GZHOOLQJZDVFRQVWUXFWHGLVVXHVRIRYHUORRNLQJFRXOGDULVH+RZHYHURYHUORRNLQJWRZDUGVWKLVSURSHUW\IURP/RWZRXOGEHPLQLPDO GXH WR WKH PHWUH KLJK IHQFH DORQJ WKH FRPPRQ ERXQGDU\ RI /RW DQG WKHREMHFWRU¶V SURSHUW\ 6HFRQGO\ WKH ORFDWLRQRI D ODUJH WUHHZLWKD YHU\ ODUJH FDQRS\ LVORFDWHG YHU\FORVH WR WKH FRPPRQERXQGDU\RQ WKH REMHFWRU¶V SURSHUW\ ,Q DQ\HYHQWRYHUORRNLQJFDQEHPDQDJHG LQDFFRUGDQFHZLWKWKHUHOHYDQW5HVFRGHVWDQGDUG DWWKH%XLOGLQJ3HUPLWVWDJH VXFKDVFRQWUROOLQJWKHGHVLJQDQGORFDWLRQRIZLQGRZVEDOFRQLHVDQG SDWLRV)XWXUHWUHHVFUHHQLQJDQGXVHRIIHQFHH[WHQVLRQVRURWKHUWHFKQLTXHVFRXOGEHXVHGLIQHFHVVDU\WRPLQLPLVHSRWHQWLDORYHUORRNLQJ LVVXHV

7KHUH LV SRWHQWLDO IRU VRPH RYHUVKDGRZLQJ RI WKH REMHFWRU¶V SURSHUW\ DW %DNHZHOO6WUHHW LQ WKHPLGDIWHUQRRQKRZHYHU WKHRYHUVKDGRZLQJHIIHFWRQ WKLVSURSHUW\ IRU WKHEDODQFH RI WKH GD\ZLOO EHPLQLPDO $Q\RYHUVKDGRZLQJRI %DNHZHOO6WUHHWZLOO EHGXULQJWKHODWHPRUQLQJWRHDUO\DIWHUQRRQRQO\DQGDQ\QHZGZHOOLQJZLOOEHUHTXLUHGWRFRPSO\ZLWKWKHRYHUVKDGRZLQJUHTXLUHPHQWVRI5HVFRGH 7KHREMHFWRU¶VSURSHUW\LVZHOORYHUVKDGRZHGE\WKHH[LVWLQJWUHHORFDWHGLQWKHUHDU\DUG

'UDLQDJH,VVXHV

7KHREMHFWRUKDVFRQFHUQVZLWKPLQRUIORRGLQJRIWKHSURSHUW\IURPWKHVXEMHFWVLWH7KH&LW\¶V'HYHORSPHQW(QJLQHHUKDVVWDWHGWKDWWKHVLWHZLOOEHUHTXLUHGWRGUDLQWRLWVOHJDOSRLQWRIGLVFKDUJH6KRXOGWKHDSSOLFDWLRQEHDSSURYHGDFRQGLWLRQZLOOEHSODFHGRQWKHSHUPLWUHTXLULQJWKHDSSOLFDQWWRSURYLGHVWRUPZDWHUGHWHQWLRQWRSUHGHYHORSPHQWOHYHOVLQ DFFRUGDQFH ZLWK SODQV DSSURYHG E\ WKH UHVSRQVLEOH DXWKRULW\ 7KH SURYLVLRQ RIVWRUPZDWHU GHWHQWLRQ ZLOO HQVXUH WKDW VWRUPZDWHU JHQHUDWHG E\ WKH SURSRVHGGHYHORSPHQWZLOOEHUHWDLQHGRQVLWHDQGQRWLQWHUIHUHZLWKWKHREMHFWRU¶VSURSHUW\

Page 55: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KHREMHFWRULVDOVRFRQFHUQHGWKDWWKHUHLVDGUDLQDJHLVVXHWRWKHUHDURIWKHSURSHUW\ZKLFK LV FDXVLQJ ZHW FRQGLWLRQV XQGHU WKH REMHFWRU¶V KRXVH 7KH &LW\¶V 'UDLQDJH(QJLQHHU KDV LQVSHFWHG WKH REMHFWRU¶V SURSHUW\ DQG QRWHV WKDW WKH SURSHUW\ ZLOO KDYHVRPH UXQRII IURP WKHSURSHUW\DW $IWRQ6WUHHWGXH WR WKHQDWXUDO IDOO RI WKH ODQGDQGUXQRIIDIWHUDUDLQHYHQWIURPDODUJHIODWSDYHGDUHDORFDWHGDWWKHUHDURIWKHREMHFWRU¶VSURSHUW\7KHVXEMHFWDUHDKDVEHHQLGHQWLILHGIRUSRVVLEOHIXWXUHGUDLQDJHZRUNVEXWLVQRW FRQVLGHUHG D KLJK SULRULW\ GXH WR WKH UHODWLYHO\ PLQRU QDWXUH DQG H[WHQW RI WKHSUREOHP

7KH&LW\RI*UHDWHU%HQGLJRFRQVLGHUVWKHH[WHQWRIWKHGUDLQDJHLVVXHWREHRIDPLQRUQDWXUH DQG WKH VXEMHFW DUHD LV OLVWHG DV ORZ SULRULW\ LQ WKH VFKHGXOH RI &LW\ GUDLQDJHZRUNV SURJUDP 7KLV FXUUHQW VLWXDWLRQ ZLOO QRW EH H[DFHUEDWHG E\ WKH VXEGLYLVLRQEHFDXVHDOOVWRUPZDWHURQWKHSURSRVHGORWVLVUHTXLUHGWREHUHWDLQHGRQVLWH

2WKHU,VVXHV

7KHREMHFWRU UDLVHGDFRQFHUQDERXWSRVVLEOHVRLO FRQWDPLQDWLRQ IURPDVKHG WKDWZDVUHPRYHG \HDUV DJR WKDWPD\ KDYH EHHQ SDUWLDOO\ FRQVWUXFWHG XVLQJDVEHVWRV 7KH&LW\¶V0XQLFLSDO%XLOGLQJ6XUYH\RUSURYLGHGDGYLFHWKDWVRLOFRQWDPLQDWLRQIURPDVEHVWRVFDQRQO\RFFXU LI WKHDVEHVWRVEDVHGPDWHULDOVKDYHEHHQEXULHG LQ WKHVRLO 6LQFHDOOEXLOGLQJPDWHULDOVDSSHDU WRKDYHEHHQUHPRYHGIURP WKHVLWHDW WKH WLPHRIGHPROLWLRQWKHUHLVQRSRWHQWLDOIRUFRQWDPLQDWLRQ

7KHDSSOLFDQWRZQHUZLOOEHUHTXLUHGWRUHPRYHWKHVKHGRQ/RWSULRUWRWKHLVVXHRIDVWDWHPHQW RI FRPSOLDQFH 6KRXOG WKHUH EH HYLGHQFH RI EXLOGLQJ PDWHULDO FRQWDLQLQJDVEHVWRV WKH DSSOLFDQWRZQHU LV UHVSRQVLEOH IRU HQJDJLQJ D UHJLVWHUHG DVEHVWRVUHPRYDOLVW WR UHPRYH WKH VKHG LQ DFFRUGDQFH ZLWK:RUN6DIH 9LFWRULDV JXLGHOLQHV IRUDVEHVWRVUHPRYDO

5HVFRGH

7KH DSSOLFDWLRQ KDV EHHQ DVVHVVHG DV VDWLVIDFWRULO\ DGGUHVVLQJ WKH REMHFWLYHV DQGVWDQGDUGV RI 5HV&RGH DV FRQWDLQHG LQ &ODXVH RI WKH *UHDWHU %HQGLJR 3ODQQLQJ6FKHPH

&RQFOXVLRQ

)RUWKHUHDVRQVDERYHLWLVFRQVLGHUHGWKDWWKHSURSRVHGVXEGLYLVLRQGRHVFRPSO\ZLWKWKH3ODQQLQJ6FKHPHDQGDSHUPLWVKRXOGEHJUDQWHG

2SWLRQV

&RXQFLODFWLQJDVWKHUHVSRQVLEOHDXWKRULW\PD\UHVROYHWRDSSURYHRUUHIXVHWRJUDQWDSHUPLW

$WWDFKPHQWV

2EMHFWLRQ

Page 56: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(&200(1'$7,21

3XUVXDQW WR VHFWLRQ RI WKH 3ODQQLQJ DQG (QYLURQPHQW $FW *UHDWHU %HQGLJR&LW\ &RXQFLO UHVROYH WR LVVXH D 1RWLFH RI 'HFLVLRQ WR *UDQW D 3HUPLW IRU D WZR ORWVXEGLYLVLRQDW%DNHZHOO6WUHHW1RUWK%HQGLJRVXEMHFWWRWKHIROORZLQJFRQGLWLRQV

$0(1'('3/$16%HIRUH WKHSODQRIVXEGLYLVLRQ LVFHUWLILHGDPHQGHGSODQV WR WKHVDWLVIDFWLRQRI WKHUHVSRQVLEOH DXWKRULW\ PXVW EH VXEPLWWHG WR DQG DSSURYHG E\ WKH UHVSRQVLEOHDXWKRULW\:KHQ DSSURYHG WKH SODQV ZLOO EH HQGRUVHG DQG WKHQ IRUP SDUW RI WKHSHUPLW7KHSODQVPXVWEHJHQHUDOO\LQDFFRUGDQFHZLWKWKHSODQVVXEPLWWHGZLWKWKHDSSOLFDWLRQEXWPRGLILHGWRVKRZDEXLOGLQJHQYHORSHVHWEDFNPHWUHVIURPWKHPLGSRLQW RIWKHIURQWERXQGDU\RI/RW

/$<2873/$167KHVXEGLYLVLRQDVVKRZQRQWKHHQGRUVHGSODQVPXVWQRWEHDOWHUHGZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKHUHVSRQVLEOHDXWKRULW\

3529,6,212)6(59,&(67KHRZQHURI WKHODQGPXVWHQWHU LQWRDJUHHPHQWVZLWKWKHUHOHYDQWDXWKRULWLHVIRUWKH SURYLVLRQ RI ZDWHU VXSSO\ GUDLQDJH VHZHUDJH IDFLOLWLHV HOHFWULFLW\ JDV DQGWHOHFRPPXQLFDWLRQVHUYLFHVWRHDFKORWVKRZQRQWKHHQGRUVHGSODQLQDFFRUGDQFHZLWKWKHDXWKRULWLHV¶UHTXLUHPHQWVDQGUHOHYDQWOHJLVODWLRQDWWKHWLPH

($6(0(176$OO H[LVWLQJ DQG SURSRVHG HDVHPHQWV DQG VLWHV IRU H[LVWLQJ DQG UHTXLUHG XWLOLW\VHUYLFHVDQG URDGVPXVWEHVHWDVLGH LQ IDYRXURI WKH UHOHYDQWDXWKRULW\ IRUZKLFKWKH HDVHPHQW RU VLWH LV WR EH FUHDWHG RQ WKH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRUFHUWLILFDWLRQXQGHUWKH6XEGLYLVLRQ$FW

5()(55$/2)3/$17KH SODQRI VXEGLYLVLRQ VXEPLWWHG IRU FHUWLILFDWLRQXQGHU WKH6XEGLYLVLRQ$FW PXVWEHUHIHUUHGWRWKHUHOHYDQWDXWKRULW\LQDFFRUGDQFHZLWKVHFWLRQRIWKDW$FW

5(029$/2)287%8,/',1*3ULRU WR WKH LVVXHRIDVWDWHPHQWRI FRPSOLDQFH WKHDSSOLFDQWRZQHUPXVW UHPRYHWKHH[LVWLQJRXWEXLOGLQJRQ/RWWRWKHVDWLVIDFWLRQRIWKHUHVSRQVLEOHDXWKRULW\

'(7$,/(''5$,1$*(3/$163ULRU WR WKHFHUWLILFDWLRQRI WKHSODQRIVXEGLYLVLRQXQGHU WKH6XEGLYLVLRQ$FWSODQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOH DXWKRULW\ PXVW EH VXEPLWWHG WR DQGDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\:KHQDSSURYHGWKHSODQVZLOOEHHQGRUVHGDQG WKHQ ZLOO IRUP SDUW RI WKH SHUPLW 7KH SODQV PXVW EH GUDZQ WR VFDOH ZLWKGLPHQVLRQV7KHSODQVPXVWLQFOXGHD 'LUHFWLRQRIVWRUPZDWHUUXQRIIE $SRLQWRIGLVFKDUJHIRUHDFKORWF ,QGHSHQGHQWGUDLQDJHIRUHDFKORWG 'UDLQDJHHDVHPHQWVRYHUDQ\SULYDWHSURSHUW\IRURXWIDOOGUDLQDJH

67250:$7(5'(7(17,213ULRUWRWKHLVVXHRIDVWDWHPHQWRIFRPSOLDQFHWKHRZQHURUDSSOLFDQWPXVWSURYLGHRQVLWH VXUIDFHDQG VWRUPZDWHU GHWHQWLRQ WRSUHGHYHORSPHQW OHYHOV LQ DFFRUGDQFHZLWKSODQVDQGVSHFLILFDWLRQVWRWKHVDWLVIDFWLRQRIWKHUHVSRQVLEOHDXWKRULW\

Page 57: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

2U

7KH UHVSRQVLEOH DXWKRULW\ PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQWRZDUGVWKHDFFHSWDQFHRIVXUIDFHDQGVWRUPZDWHUGLVFKDUJHIURPWKHDSSURYHG VXEGLYLVLRQ EXLOGLQJ DQGRU ZRUNV ZKHWKHU RU QRW VXFK QHZ GUDLQDJHLQIUDVWUXFWXUHKDVEHHQRUZLOOEHVLWXDWHGZLWKLQWKHERXQGDULHVRIWKHVXEMHFWODQG6XFK DPRXQW LV DVVHVVHG DV RU VXFK DPRXQW DSSO\LQJ DW WKH WLPH RISD\PHQW

67250:$7(548$/,7<%HIRUHWKHXVHRUGHYHORSPHQWLVFRPPHQFHGWKHRZQHURUDSSOLFDQWPXVWSURYLGHD VWRUPZDWHU WUHDWPHQW V\VWHP WR DFKLHYH WKH %HVW 3UDFWLFH (QYLURQPHQWDO*XLGHOLQHVVWRUPZDWHUTXDOLW\9LFWRULD6WRUPZDWHU&RPPLWWHHLQDFFRUGDQFHZLWKSODQVDQGVSHFLILFDWLRQVWRWKHVDWLVIDFWLRQRIWKHUHVSRQVLEOHDXWKRULW\

7KH UHVSRQVLEOH DXWKRULW\ PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQ WRZDUGV WKH WUHDWPHQW RI VXUIDFH DQG VWRUPZDWHU GLVFKDUJH IURP WKHDSSURYHGVXEGLYLVLRQEXLOGLQJDQGRUZRUNVZKHWKHURUQRWVXFKQHZVWRUPZDWHUWUHDWPHQW LQIUDVWUXFWXUH KDV EHHQ RU ZLOO EH VLWXDWHG ZLWKLQ WKH ERXQGDULHV RI WKHVXEMHFWODQGRULWVLPPHGLDWHFDWFKPHQW6XFKDPRXQWLVDVVHVVHGDVRUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

'5$,1$*(:25.63ULRUWRWKHLVVXHRIWKHVWDWHPHQWRIFRPSOLDQFHIRUWKHVXEGLYLVLRQGUDLQDJHZRUNVPXVW EH FRQVWUXFWHG LQ DFFRUGDQFH ZLWK SODQV DSSURYHG E\ WKH UHVSRQVLEOHDXWKRULW\

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

127(

&216(17)25:25.2152$'5(6(59(67KHDSSOLFDQWPXVWFRPSO\ZLWKD 7KH5RDG0DQDJHPHQW$FWE 5RDG0DQDJHPHQW:RUNVDQG,QIUDVWUXFWXUH5HJXODWLRQVF 5RDG 0DQDJHPHQW*HQHUDO5HJXODWLRQVZLWKUHVSHFWWRDQ\UHTXLUHPHQWVWRQRWLI\WKHFRRUGLQDWLQJDXWKRULW\DQGRUVHHNFRQVHQWIURP WKHFRRUGLQDWLQJDXWKRULW\ WR XQGHUWDNH ³ZRUNV´ DVGHILQHG LQ WKH$FW LQRYHURUXQGHUWKHURDGUHVHUYH7KHUHVSRQVLEOHDXWKRULW\LQWKHLQFOXVLRQRIWKLVFRQGLWLRQRQWKLVSODQQLQJ SHUPLW LV QRW GHHPHG WR KDYH EHHQ QRWLILHG RI RU WR KDYH JLYHQ FRQVHQW WRXQGHUWDNHDQ\ZRUNVZLWKLQWKHURDGUHVHUYHDVSURSRVHGLQWKLVSHUPLW

Page 58: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(62/87,21

0RYHG&U&R[6HFRQGHG&U/\RQV

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 59: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 60: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

/2768%',9,6,212)/$1' 7$</256/$1(675$7+),(/'6$<(

'RFXPHQW,QIRUPDWLRQ

$XWKRU /L]&RPPDGHXU6XEGLYLVLRQ3ODQQHU

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJ'HYHORSPHQW'LUHFWRU

6XPPDU\3XUSRVH

7KLVDSSOLFDWLRQVHHNVDSSURYDOIRUDWZRORWVXEGLYLVLRQRIWKHODQGDW7D\ORUV/DQH6WUDWKILHOGVD\H 2QHQHLJKERXU KDVREMHFWHG WR WKH VXEGLYLVLRQSULQFLSDOO\EHFDXVH RIFRQFHUQVDERXWDPHQLW\LVVXHVGHYDOXDWLRQRISURSHUW\DQGSRWHQWLDOORVVRIYLHZV

7KH VLWH LV ZLWKLQ %HQGLJR¶V XUEDQ JURZWK ERXQGDU\ DQG LV ]RQHG IRU UHVLGHQWLDOSXUSRVHV ,W LVFRQVLGHUHGWKDW WKHVXEGLYLVLRQPHHWVWKHUHTXLUHPHQWVRI WKH3ODQQLQJ6FKHPHDQGDSHUPLWVKRXOGEHJUDQWHG

3ROLF\&RQWH[W

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ± XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW6WUDWHJLF2EMHFWLYHV

9DOXHFRQVHUYHDQGHQKDQFHWKHULFKEXLOWDQGQDWXUDOKHULWDJH$FKLHYHKLJKTXDOLW\RXWFRPHVLQSODQQLQJDQGSROLF\DFWLYLWLHV(QFRXUDJHDQGIRVWHUKLJKTXDOLW\GHVLJQWRFUHDWHHQYLURQPHQWVWKDWVXSSRUWSXEOLFZHOOEHLQJDQGHFRQRPLFVXFFHVV

5HSRUW

$SSOLFDWLRQ1R '6

$SSOLFDWLRQ'DWH 6HSWHPEHU

$SSOLFDQW &3*$XVWUDOLD3W\/WG

/DQG 7D\ORUV/DQH675$7+),(/'6$<(

=RQLQJ 5HVLGHQWLDO=RQH

2YHUOD\V 7KHUHDUHQRRYHUOD\V

6XEMHFW6LWH DQG6XUURXQGV

7KH VLWH LV ORFDWHG ZLWKLQ D UHVLGHQWLDO DUHD RQ WKH HDVW VLGH RI 7D\ORUV /DQH LQ6WUDWKILHOGVD\H$GZHOOLQJDQGDVVRFLDWHGRXWEXLOGLQJVDUHORFDWHGRQWKHVRXWKHUQSDUWRI WKH VLWH 7KH VLWH LV JHQHUDOO\ LUUHJXODU LQ VKDSH DQG KDV DQ DUHD RI VTXDUHPHWUHV7KHVLWHKDVDPHWUHZLGHIURQWDJHWR7D\ORUV/DQH7KHUHDUHDQXPEHURIWUHHVORFDWHGDORQJWKHURDGUHVHUYHDQGRQWKHVLWH

Page 61: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KH VLWH LV ORFDWHG DSSUR[LPDWHO\ RQH NLORPHWUH IURP WKH 6WUDWKILHOGVD\H 6KRSSLQJ3UHFLQFW DQG NLORPHWUHV IURP WKH %HQGLJR &%' /RFDO IDFLOLWLHV LQFOXGH D SULPDU\VFKRROV DQG UHFUHDWLRQ UHVHUYHV $ EXV VHUYLFH WR DQG IURP WKH&%' LV DYDLODEOH RQ6WUDWKILHOGVD\H5RDG

)LJXUH/RFDWLRQPDSVKRZLQJVXEMHFWVLWH2EMHFWRU¶VSURSHUW\ PDUNHGZLWKDVWDU

3URSRVDO

7KH DSSOLFDQW VHHNVDSSURYDO WR VXEGLYLGH WKH ODQG LQWR ORWVZLWK /RW EHLQJVTXDUH PHWUHV DQG /RW EHLQJ VTXDUH PHWUHV ,W LV SURSRVHG WR H[FLVH WKHQRUWKHUQVLGHRIWKHVLWHIURPWKHH[LVWLQJGZHOOLQJWRFUHDWHDORWVXLWDEOHIRUDGZHOOLQJ%RWKORWVZRXOGKDYHGLUHFWDFFHVVIURP7D\ORUV/DQH7KHORWVZRXOGEHIXOO\VHUYLFHG

3ODQQLQJ&RQWUROV *UHDWHU%HQGLJR3ODQQLQJ6FKHPH

7KHVLWHLVLQWKH5HVLGHQWLDO=RQH$SHUPLW LVUHTXLUHGWRVXEGLYLGHODQGSXUVXDQWWRWKH5HVLGHQWLDO=RQHFRQWUROV

7KH IROORZLQJ SURYLVLRQV RI WKH*UHDWHU %HQGLJR3ODQQLQJ 6FKHPH DUH UHOHYDQW WR WKHDSSOLFDWLRQ

6WDWH3ODQQLQJ3ROLF\)UDPHZRUN

5HJLRQDOGHYHORSPHQWFODXVH8UEDQHQYLURQPHQWFODXVH6XVWDLQDEOHGHYHORSPHQWFODXVH,QWHJUDWHGWUDQVSRUWFODXVH0RYHPHQWQHWZRUNVFODXVH

0XQLFLSDO6WUDWHJLF6WDWHPHQW

0XQLFLSDOSURILOHFODXVH

Page 62: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

.H\LVVXHVDQGLQIOXHQFHVFODXVH9LVLRQ VWUDWHJLFIUDPHZRUNFODXVH6WUDWHJLFGLUHFWLRQVFODXVH6HWWOHPHQWFODXVH+RXVLQJFODXVH(QYLURQPHQWFODXVH,QIUDVWUXFWXUHFODXVH5HIHUHQFHGRFXPHQWVFODXVH

/RFDO3ODQQLQJ3ROLFLHV

6DOLQLW\DQGHURVLRQULVNSROLF\FODXVH

2WKHUUHOHYDQWSURYLVLRQV

'HFLVLRQJXLGHOLQHVFODXVH5HIHUUDODQGQRWLFHSURYLVLRQVFODXVH

&RQVXOWDWLRQ&RPPXQLFDWLRQ

5HIHUUDOV

7KHIROORZLQJLQWHUQDOGHSDUWPHQWVKDYHEHHQFRQVXOWHGRQWKHSURSRVDO

5HIHUUDO &RPPHQW

7UDIILF'HVLJQ 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

'UDLQDJH 1RREMHFWLRQVXEMHFWWRFRQGLWLRQV

3XEOLF1RWLILFDWLRQ

7KHDSSOLFDWLRQZDVDGYHUWLVHG E\ZD\RIQRWLFHRQWKHVLWHDQGOHWWHUV WRDGMRLQLQJDQGQHDUE\RZQHUVDQGRFFXSLHUV

$V D UHVXOW RI DGYHUWLVLQJ RQH REMHFWLRQ ZDV UHFHLYHG ZLWK WKH JURXQGV RI REMHFWLRQEHLQJ

/DFNRISULYDF\

/RVVRIYLHZV

'HYDOXDWLRQRISURSHUW\

1R FRQVXOWDWLRQ PHHWLQJ ZDV KHOG DV WKH DSSOLFDQW GLG QRW ZDQW WR SDUWLFLSDWH 7KHREMHFWLRQVDUHGLVFXVVHGEHORZ

Page 63: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3ODQQLQJ$VVHVVPHQW

([LVWLQJ1HLJKERXUKRRG&KDUDFWHU

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¶VSURSHUW\WR WKHHDVW 7KHDUHDRI WKHSURSRVHGORWVZLOOUDQJHEHWZHHQVTXDUHPHWUHVDQGVTXDUHPHWUHV7D\ORUV/DQHWRWKHQRUWKRIWKHVLWHLVFRPSULVHGRIORWVWKDWDUHJUHDWHUWKDQVTXDUHPHWUHVLQDUHD0RVWRIWKHVH ORWV JHQHUDOO\ KDYH ODUJH GZHOOLQJV ZLWK PHGLXP WR ODUJH ODQGVFDSHG JDUGHQVFUHDWLQJDVHQVHRIVSDFLRXVQHVV

,WLVSURSRVHGWRVXEGLYLGHWKHQRUWKHUQSDUWRIWKHORWRIIIURPWKHH[LVWLQJGZHOOLQJDQGFUHDWHDQHZORWVXLWDEOHIRUDGZHOOLQJ %RWK ORWVZLOOKDYHDFFHVV IURP7D\ORUV/DQH/RW ZLOOKDYHDQDUHDRIVTXDUHPHWUHVZKLOH/RWZLOOEHVTXDUHPHWUHV7KHIURQWDJHVRIERWKORWVDUHVLPLODUWR PRVW ORWVLQWKHVXUURXQGLQJDUHDLQSDUWLFXODUWRWKHVRXWKRIWKHVLWH

,W LV FRQVLGHUHG WKDW WKH SURSRVHG VXEGLYLVLRQ ZLOO UHVSHFW WKH FKDUDFWHU RI WKHQHLJKERXUKRRGIRUWKHIROORZLQJUHDVRQV

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

5HVFRGH

5HVFRGHUHTXLUHPHQWVLQFOXGLQJVRODURULHQWDWLRQFDQEHDFKLHYHG $FFHVVLVDYDLODEOHWRERWKORWV $OOVHUYLFHVH[FHSWIRUJDVFDQEHFRQQHFWHGWRWKHVLWH

7KH QHZ YDFDQW ORW LV DEOH WR HDVLO\ DFFRPPRGDWH D PHWUH E\ PHWUH EXLOGLQJUHFWDQJOHZKLFKLVVXIILFLHQWVSDFHIRUDPHGLXPWRODUJHVL]HGGZHOOLQJ

Page 64: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KH REMHFWRU LV FRQFHUQHG WKDW WKHLU SULYDF\ ZLOO EH FRPSURPLVHG E\ WKH SURSRVHGVXEGLYLVLRQ 7KH SURSRVHG VXEGLYLVLRQ ZLOO KDYH PLQLPDO DPHQLW\ LPSDFWV RQ WKHREMHFWRU¶VSURSHUW\7KHFRPPRQERXQGDU\EHWZHHQWKHVLWHDQGWKHREMHFWRU¶VSURSHUW\ERXQGDU\WRWKHHDVWLVDSSUR[LPDWHO\PHWUHVIURPWKHZHVWHUQZDOORIWKHGZHOOLQJ7D\ORUV /DQH 7KLV GHJUHH RI VHSDUDWLRQ EHWZHHQ WKLV GZHOOLQJ DQG DQ\ SURSRVHGGZHOOLQJ RQ /RW PD\ EH UHLQIRUFHG ZLWK WKH SODQWLQJ RI WUHHV EXW VKRXOG QRW EH DPDQGDWRU\ UHTXLUHPHQW 7KHUH LV DPSOH VSDFH RQ WKH VLWH DQG LW LV XQOLNHO\ WKDW DQ\IXWXUHGZHOOLQJFRQVWUXFWHGRQ/RWZLOOEHORFDWHGVRFORVHWRWKHHDVWHUQERXQGDU\DVWRFDXVHSULYDF\LVVXHVIRUWKHREMHFWRU

7KH DSSOLFDWLRQ KDV EHHQ DVVHVVHG DV VDWLVIDFWRULO\ DGGUHVVLQJ WKH REMHFWLYHV DQGVWDQGDUGVRI5HV&RGHDVFRQWDLQHGLQ&ODXVHRIWKH 3ODQQLQJ6FKHPH

'HYDOXDWLRQRI3URSHUW\DQG/RVVRI9LHZV

'HYDOXDWLRQRISURSHUW\DQG ORVVRIYLHZVDUHQRW WRZQSODQQLQJFRQVLGHUDWLRQV DV KDVEHHQUHSHDWHGO\WHVWHGDW9&$7

&RQFOXVLRQ

)RUWKHUHDVRQVDERYHLWLVFRQVLGHUHGWKDWWKHSURSRVHGVXEGLYLVLRQFRPSOLHVZLWKWKH3ODQQLQJ6FKHPHDQGDSHUPLWVKRXOGEHJUDQWHG

2SWLRQV

&RXQFLODFWLQJDVWKHUHVSRQVLEOHDXWKRULW\PD\UHVROYHWRDSSURYHRUUHIXVHWRJUDQWDSHUPLW

$WWDFKPHQWV

2EMHFWLRQ

5(&200(1'$7,21

3XUVXDQW WR VHFWLRQ RI WKH 3ODQQLQJ DQG (QYLURQPHQW $FW *UHDWHU %HQGLJR&LW\ &RXQFLO UHVROYH WR LVVXH D 1RWLFH RI 'HFLVLRQ WR *UDQW D 3HUPLW IRU D WZR ORWVXEGLYLVLRQDW7D\ORUV/DQH6WUDWKILHOGVD\HVXEMHFWWRWKHIROORZLQJFRQGLWLRQV

3/$1672%((1'256('7KH SODQV WR EH HQGRUVHG DQG ZKLFKZLOO WKHQ IRUP SDUW RI WKH SHUPLW DUH WKHSODQVVXEPLWWHGZLWKWKHDSSOLFDWLRQ

/$<2873/$167KHVXEGLYLVLRQDVVKRZQRQ WKHHQGRUVHGSODQVPXVWQRWEHDOWHUHGZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKHUHVSRQVLEOHDXWKRULW\

3529,6,212)6(59,&(67KHRZQHURI WKH ODQGPXVWHQWHU LQWRDJUHHPHQWVZLWK WKH UHOHYDQWDXWKRULWLHVIRU WKH SURYLVLRQ RI ZDWHU VXSSO\ GUDLQDJH VHZHUDJH IDFLOLWLHV HOHFWULFLW\ JDVDQG WHOHFRPPXQLFDWLRQ VHUYLFHV WR HDFK ORW VKRZQ RQ WKH HQGRUVHG SODQ LQDFFRUGDQFHZLWKWKHDXWKRULWLHV¶UHTXLUHPHQWVDQGUHOHYDQWOHJLVODWLRQDWWKHWLPH

Page 65: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

($6(0(176$OO H[LVWLQJ DQG SURSRVHG HDVHPHQWV DQG VLWHV IRU H[LVWLQJ DQG UHTXLUHG XWLOLW\VHUYLFHVDQGURDGVPXVWEHVHWDVLGHLQIDYRXURIWKHUHOHYDQWDXWKRULW\IRUZKLFKWKH HDVHPHQW RU VLWH LV WR EH FUHDWHG RQ WKH SODQ RI VXEGLYLVLRQ VXEPLWWHG IRUFHUWLILFDWLRQXQGHUWKH6XEGLYLVLRQ$FW

5()(55$/2)3/$17KHSODQRIVXEGLYLVLRQVXEPLWWHGIRUFHUWLILFDWLRQXQGHUWKH6XEGLYLVLRQ$FWPXVWEHUHIHUUHGWRWKHUHOHYDQWDXWKRULW\LQDFFRUGDQFHZLWKVHFWLRQRIWKDW$FW

'(7$,/(''5$,1$*(3/$163ULRUWRWKHFHUWLILFDWLRQRIWKHSODQRIVXEGLYLVLRQXQGHUWKH6XEGLYLVLRQ$FWSODQV WR WKH VDWLVIDFWLRQRI WKH UHVSRQVLEOH DXWKRULW\PXVW EH VXEPLWWHG WR DQGDSSURYHG E\ WKH UHVSRQVLEOH DXWKRULW\ :KHQ DSSURYHG WKH SODQV ZLOO EHHQGRUVHGDQGWKHQZLOOIRUPSDUWRIWKHSHUPLW7KHSODQVPXVWEHGUDZQWRVFDOHZLWKGLPHQVLRQV7KHSODQVPXVWLQFOXGHD 'LUHFWLRQRIVWRUPZDWHUUXQRIIE $SRLQWRIGLVFKDUJHIRUHDFKORWF ,QGHSHQGHQWGUDLQDJHIRUHDFKORW

67250:$7(5'(7(17,213ULRU WR WKH LVVXH RI D VWDWHPHQW RI FRPSOLDQFH WKH RZQHU RU DSSOLFDQW PXVWSURYLGH RQVLWH VXUIDFH DQG VWRUPZDWHU GHWHQWLRQ WR SUHGHYHORSPHQW OHYHOV LQDFFRUGDQFH ZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKH UHVSRQVLEOHDXWKRULW\

2U

7KH UHVSRQVLEOH DXWKRULW\PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQ WRZDUGV WKHDFFHSWDQFHRI VXUIDFHDQG VWRUPZDWHU GLVFKDUJH IURPWKH DSSURYHG VXEGLYLVLRQ EXLOGLQJ DQGRU ZRUNV ZKHWKHU RU QRW VXFK QHZGUDLQDJH LQIUDVWUXFWXUHKDVEHHQRUZLOOEHVLWXDWHGZLWKLQWKHERXQGDULHVRIWKHVXEMHFWODQG6XFKDPRXQWLVDVVHVVHGDVRUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

67250:$7(548$/,7<%HIRUH WKH XVH RU GHYHORSPHQW LV FRPPHQFHG WKH RZQHU RU DSSOLFDQW PXVWSURYLGH D VWRUPZDWHU WUHDWPHQW V\VWHP WR DFKLHYH WKH %HVW 3UDFWLFH(QYLURQPHQWDO *XLGHOLQHV VWRUP ZDWHU TXDOLW\ 9LFWRULD 6WRUPZDWHU &RPPLWWHH LQ DFFRUGDQFH ZLWK SODQV DQG VSHFLILFDWLRQV WR WKH VDWLVIDFWLRQ RI WKHUHVSRQVLEOHDXWKRULW\

2U

7KH UHVSRQVLEOH DXWKRULW\PD\ GHHP WKLV FRQGLWLRQ VDWLVILHG E\ D GHYHORSPHQWFRQWULEXWLRQWRZDUGVWKHWUHDWPHQWRIVXUIDFHDQGVWRUPZDWHUGLVFKDUJHIURPWKHDSSURYHG VXEGLYLVLRQ EXLOGLQJ DQGRU ZRUNV ZKHWKHU RU QRW VXFK QHZVWRUPZDWHU WUHDWPHQW LQIUDVWUXFWXUH KDV EHHQ RU ZLOO EH VLWXDWHG ZLWKLQ WKHERXQGDULHV RI WKH VXEMHFW ODQG RU LWV LPPHGLDWH FDWFKPHQW 6XFK DPRXQW LVDVVHVVHGDVRUVXFKDPRXQWDSSO\LQJDWWKHWLPHRISD\PHQW

Page 66: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

'5$,1$*(:25.63ULRU WR WKH LVVXH RI WKH VWDWHPHQW RI FRPSOLDQFH IRU WKH VXEGLYLVLRQ GUDLQDJHZRUNVPXVWEHFRQVWUXFWHGLQDFFRUGDQFHZLWKSODQVDSSURYHGE\WKHUHVSRQVLEOHDXWKRULW\

6(&7,21$*5((0(176KRXOG WKH DSSOLFDQW RSW WR LQVWDOO DQ RQVLWH VWRUPZDWHU GHWHQWLRQ V\VWHP RUZDWHU TXDOLW\ WUHDWPHQW V\VWHP WKHQ SULRU WR WKH LVVXH RI VWDWHPHQW RIFRPSOLDQFHWKHDSSOLFDQWRZQHUPXVWHQWHULQWRDQDJUHHPHQWXQGHUVHFWLRQRIWKH3ODQQLQJDQG(QYLURQPHQW$FW6XFKDJUHHPHQWPXVWFRYHQDQWWKDWD 7KHV\VWHPVKDOOEHGHVLJQHGE\DTXDOLILHGHQJLQHHUDQGPXVWEHDSSURYHG

E\WKHUHVSRQVLEOHDXWKRULW\SULRUWRFRQVWUXFWLRQE (DFK V\VWHP PXVW EH FRQVWUXFWHG HLWKHU SULRU WR RU FXUUHQWO\ ZLWK WKH

FRQVWUXFWLRQRIDQ\EXLOGLQJRQWKHVSHFLILHGORWVF 7KH V\VWHP PXVW EH FRPSOHWHG SULRU WR FRQQHFWLRQ WR WKH UHVSRQVLEOH

DXWKRULW\¶VGUDLQDJHV\VWHPG 7KH RZQHU ZLOOPDLQWDLQ HDFK V\VWHP DQG QRWPRGLI\ ZLWKRXW SULRU ZULWWHQ

DSSURYDOIURPWKHUHVSRQVLEOHDXWKRULW\H 7KHRZQHUVKDOODOORZGXO\DXWKRULVHGRIILFHUVRIWKHUHVSRQVLEOHDXWKRULW\WR

LQVSHFWWKHV\VWHPDWPXWXDOO\DJUHHGWLPHVI 7KH RZQHU ZLOO SD\ IRU DOO FRVWV DVVRFLDWHG ZLWK WKH FRQVWUXFWLRQ DQG

PDLQWHQDQFHRIWKHV\VWHP

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

127(

&216(17)25:25.2152$'5(6(59(67KHDSSOLFDQWPXVWFRPSO\ZLWKD 7KH5RDG0DQDJHPHQW$FWE 5RDG0DQDJHPHQW:RUNVDQG,QIUDVWUXFWXUH5HJXODWLRQVF 5RDG0DQDJHPHQW*HQHUDO5HJXODWLRQVZLWKUHVSHFWWRDQ\UHTXLUHPHQWVWRQRWLI\WKHFRRUGLQDWLQJDXWKRULW\DQGRUVHHNFRQVHQWIURP WKHFRRUGLQDWLQJDXWKRULW\ WR XQGHUWDNH ³ZRUNV´ DVGHILQHG LQ WKH$FW LQRYHURUXQGHUWKHURDGUHVHUYH7KHUHVSRQVLEOHDXWKRULW\LQWKHLQFOXVLRQRIWKLVFRQGLWLRQRQWKLVSODQQLQJ SHUPLW LV QRW GHHPHG WR KDYH EHHQ QRWLILHG RI RU WR KDYH JLYHQ FRQVHQW WRXQGHUWDNHDQ\ZRUNVZLWKLQWKHURDGUHVHUYHDVSURSRVHGLQ WKLVSHUPLW

Page 67: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(62/87,21

0RYHG&U&DPSEHOO6HFRQGHG&U&KDSPDQ

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 68: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 69: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 70: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$:$5',1* 2) &2175$&7 12 &7 )25 7+( 5(6($/,1* 2)9$5,28652$'6

'RFXPHQW,QIRUPDWLRQ

$XWKRU 1RHO6KDQDKDQ&RRUGLQDWRU,QIUDVWUXFWXUH'HYHORSPHQW

5HVSRQVLEOH 'DUUHQ)X]]DUG'LUHFWRU3UHVHQWDWLRQDQG$VVHWV'LUHFWRU

6XPPDU\3XUSRVH

7KLVUHSRUWFRQVLGHUVWHQGHUVVXEPLWWHGIRUWKHUHVHDOLQJRIURDGVDQGUHFRPPHQGVWKHFRQWUDFWEHDZDUGHGWR3ULPDO6XUIDFLQJ3W\/WG

3ROLF\&RQWH[W

&RXQFLO3ODQ5HIHUHQFH

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ±XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW

6WUDWHJ\ 0DLQWDLQ DQG HQKDQFH WKH HIIHFWLYHQHVV RI H[LVWLQJ URDGVLQFOXGLQJ GHYHORSLQJPHFKDQLVPV WR LPSURYH WUXFN URXWHVRXWVLGHWKHFLW\FHQWUH

5HSRUW

7KUHH WHQGHUVZHUHUHFHLYHGIRUELWXPLQRXVVHDOLQJRIURDGVDWYDULRXVORFDWLRQV

7KHWHQGHUHUVDUH

3ULPDO6XUIDFLQJ3W\/WG5RDGV&RUSRUDWLRQWUDGLQJDV6SUD\OLQH%RUDO5HVRXUFHV9LF3W\/WGWUDGLQJDV%RUDO$VSKDOW

7KLV\HDU¶VUHVXUIDFLQJSURJUDPUHSUHVHQWVDF\FOHUDWHRQELWXPLQRXVVHDOVRILQ\HDUVRUDSSUR[LPDWHO\RIWKHVHDOHG URDGQHWZRUN2QDYHUDJHWKHGHVLUDEOHUDWHLVLQ\HDUVRURIWKHVHDOHGURDGQHWZRUN

7KHIDLOXUHWRPHHWWKHLQWHUYHQWLRQ OHYHOZLOOUHVXOW LQIXUWKHUGHWHULRUDWLRQRIWKHVHDOHGURDG QHWZRUN LQFOXGLQJ DGGLWLRQDO SDYHPHQW IDLOXUHV DQG D UHTXLUHPHQW IRU DGGLWLRQDOPDMRU SDWFKLQJVXUIDFHSUHSDUDWLRQZRUNSULRU WR UHVXUIDFLQJ $VD UHVXOW D VLJQLILFDQWLQFUHDVH LQ IXQGLQJ IRU UHVXUIDFLQJ DQGPDMRU SDWFKLQJZLOO EH UHIHUUHG WR WKH EXGJHWIRUFRQVLGHUDWLRQ

Page 71: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

,WKDVEHHQQHFHVVDU\WRIXQGPRVWRIWKHDVSKDOWGLJRXWZRUNLQSUHSDUDWLRQIRUUHVHDOVIURP WKLVEXGJHW 7KLVZDVGXH WR WKHSRRUVWDWHRI URDGSDYHPHQWV OLVWHG IRU UHVHDOVDQGDEXGJHWVKRUWIDOO LQ WKLVDUHD IROORZLQJ WKHHQGLQJRI WKHGURXJKWDQGVXEVHTXHQWZHWVHDVRQV

7KH FRQWUDFW LV IRU RQH \HDU DQG WKH SURJUDP UHTXLUHV WKH UHVHDOLQJ RI DSSUR[LPDWHO\VTXDUHPHWUHVRIURDGVDQGVTXDUHPHWUHVRIILQDOVHDOV

6SUD\OLQHDQG%RUDO$VSKDOW KDYHXQGHUWDNHQVSUD\VHDOLQJFRQWUDFWVIRUWKHPXQLFLSDOLW\LQ UHFHQW \HDUV :KLOH 3ULPDO 6XUIDFLQJ KDV XQGHUWDNHQ 9LF5RDGV 1RUWKHUQ 5HJLRQUHVHDOZRUNV IRU WKH SDVW \HDUV 6SUD\OLQH DQG%RUDO$VSKDOW KDYHGHSRWV EDVHG LQ%HQGLJR

7KHHYDOXDWLRQSDQHOFRQVLVWLQJRI%UHWW0DUWLQL 0DQDJHU(QJLQHHULQJ3XEOLF6SDFH1RHO 6KDQDKDQ &R±RUGLQDWRU ,QIUDVWUXFWXUH 'HYHORSPHQW DQG *UHJ 3RZHU 3URMHFW0DQDJHU HYDOXDWHG WKH WHQGHUV LQ DFFRUGDQFH ZLWK WKH FULWHULD VSHFLILHG LQ WKH WHQGHUGRFXPHQWV

7KHWHQGHUHYDOXDWLRQSDQHOKDYHXQGHUWDNHQDWKRURXJKDVVHVVPHQWDQGHYDOXDWLRQRIWKH WHQGHUVDVSHU WKHWHQGHUFRQGLWLRQV 7KH WHQGHUZLWKWKHKLJKHVWHYDOXDWLRQVFRUHDQGUHSUHVHQWLQJWKHEHVWYDOXHWR&RXQFLOZDVIURP3ULPDO6XUIDFLQJ

&RQFOXVLRQ

7KHHYDOXDWLRQSDQHOUHFRPPHQGWKDWWKHFRQWUDFWEHDZDUGHGWR3ULPDO6XUIDFLQJ

5HVRXUFH,PSOLFDWLRQV

7KHEXGJHWIRUWKHVHZRUNVLVLQFOXGHGLQWKHUHVXUIDFLQJDQGILQDOVHDOEXGJHW

7KH UHVXUIDFLQJ EXGJHW DOORFDWLRQ RI PLOOLRQ LV PDGH XS RI UHVHDO DQG DVSKDOWFRPSRQHQWV7KLVFRQWUDFWFRQWDLQVWKHUHVHDOFRPSRQHQW

'HWDLOVRILQGLYLGXDODOORFDWLRQVDUH

%XGJHW &RQWUDFW3ULFHH[FOXGHV*67

5HVHDOV LQFOXGHVFRQWLQJHQF\

$VSKDOW LQFOXGHVFRQWLQJHQF\

:RUNVWRGDWH &DUU\ RYHU DVSKDOW VXUIDFLQJ XQGHU FRQWUDFW E\%RUDO

3UHSDUDWLRQZRUNV 8QGHUWDNHQE\%HQ&RQ

$VSKDOWZRUNVVWLOOWREHDUUDQJHG

7REHWHQGHUHGQH[W\HDU

7RWDO5HVXUIDFLQJ

Page 72: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KHILQDOVHDODOORFDWLRQLV

%XGJHW &RQWUDFW3ULFHH[FOXGHV*67

)LQDO6HDOV LQFOXGHVFRQWLQJHQF\

,WVKRXOGEHQRWHGWKDWWKH&RQWUDFW3ULFHLVVXEMHFWWRULVHDQGIDOODQGKDVDGMXVWPHQWVIRUDUHDDQGELWXPHQUDWHV

5(&200(1'$7,21

7KDW &RQWUDFW 1R &7 IRU WKH 6HDOLQJ RI 9DULRXV 5RDGV EH DZDUGHG WR 3ULPDO6XUIDFLQJIRUH[FOXGLQJ*67

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U/HDFK

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 73: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(63216( 72 3(7,7,21 5(48(67 )25 ,167$//$7,21 2) 1267$1',1*6,*1$*(,1*5((1:22''5,9(.(11,1*721

'RFXPHQW,QIRUPDWLRQ

$XWKRU $QGUHZ6PLWK7UDQVSRUWDWLRQ(QJLQHHU

5HVSRQVLEOH 'DUUHQ)X]]DUG'LUHFWRU3UHVHQWDWLRQDQG$VVHWV'LUHFWRU

6XPPDU\3XUSRVH

7KHSXUSRVHRIWKHUHSRUWLVWRUHVSRQGWR WKHSHWLWLRQSUHVHQWHGWR &RXQFLORQ0DUFK IURPUHVLGHQWVDQGXVHUVRI*UHHQZRRG'ULYH.HQQLQJWRQ

3ROLF\ &RQWH[W

&RXQFLO3ODQ5HIHUHQFH

&LW\RI*UHDWHU%HQGLJR&RXQFLO3ODQ±XSGDWHG

%XLOWDQG1DWXUDO(QYLURQPHQW

6WUDWHJ\ 'HYHORSDVXVWDLQDEOHLQWHJUDWHGWUDQVSRUWQHWZRUN

3ROLF\

5HVLGHQWLDO3DUNLQJ3ROLF\

%DFNJURXQG,QIRUPDWLRQ

$ SHWLWLRQ KDV EHHQ SUHVHQWHG WR &RXQFLO UHTXHVWLQJ WKH LQVWDOODWLRQ RI 1R 6WDQGLQJVLJQDJHLQ*UHHQZRRG'ULYH.HQQLQJWRQDVRXWOLQHGEHORZ

:H WKH XQGHUVLJQHG FRQFHUQHG UHVLGHQWV DQG UDWHSD\HUV IRUPDOO\ SHWLWLRQ DQGUHTXHVW WKH&LW\ RI*UHDWHU%HQGLJR DGGUHVV WKH VHULRXV SDUNLQJ SUREOHPV DORQJERWKVLGHVRI*UHHQZRRG'ULYHIURP(GZDUGV5GWR,QRURP3ODFHEHFDXVHRIWKHSDUNLQJGHPDQGVRI/D7UREH8QLYHUVLW\VWXGHQWVYLVLWRUVDQGVWDII

2XUUHVLGHQWLDODUHDZDVQRWGHVLJQHGIRUQRUZDVLW LQWHQGHGDVDQRYHUIORZFDUSDUNLQJ DUHD IRU WKH8QLYHUVLW\ 5HVLGHQWV FDQQRW SDUN XQKLQGHUHG RQ8QLYHUVLW\ODQG

Page 74: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

:HEHOLHYHXQFRQWUROOHGSDUNLQJFRPSURPLVHVVDIHW\LQRXUUHVLGHQWLDODUHDSODFLQJUHVLGHQWVDQGWKHLUSURSHUWLHVDWULVN7KDWULVNFRPSRXQGVEHFDXVHRI WKHEHQGVLQ DQG WKH QDUURZQHVVRI*UHHQZRRG'ULYH )RU H[DPSOHZLWK FDUV SDUNHG RQHLWKHUVLGHRIWKH'ULYHWKHUHLVQRURRPIRUD&)$WUXFNWRJHWWKURXJK,WFUHDWHVSRWHQWLDOKHDGRQFROOLVLRQV WZRRIZKLFKKDYHRFFXUUHGLQWKHSDVW\HDUV

$W WKH YHU\ OHDVW ZH UHTXHVW 1R 6WDQGLQJ VLJQV EH SODFHG VWUDWHJLFDOO\ DORQJ*UHHQZRRG'ULYHRQERWKVLGHVWR,QRURP3ODFH

6LJQDWXUHV

3UHYLRXV&RXQFLO'HFLVLRQV'DWHV

$W WKH&RXQFLOPHHWLQJ RQ WKH 0DUFK DPRWLRQZDV SDVVHG WKDW D UHSRUW EHSUHSDUHGZLWKLQWZRPHHWLQJV

&RXQFLOFRQVLGHUHGWKHPDWWHURIUHVWULFWLQJSDUNLQJRSSRUWXQLWLHVLQUHVLGHQWLDOVWUHHWVLQ$SULODQGUHVROYHGWKDWWKLVZDVQRWDSSURSULDWHDWWKDWWLPH

5HSRUW

$QRQVLWHPHHWLQJZDVKHOGZLWKUHVLGHQWVRIILFHUVDQG WKHQ&RXQFLOORU.HLWK5H\QDUGRQWKHHYHQLQJRI$SULOWRGLVFXVVWKHUHVLGHQWV¶FRQFHUQVDERXW8QLYHUVLW\WUDIILFXVLQJ*UHHQZRRG'ULYHIRUSDUNLQJ

7KHUHDSSHDUHGWREHDFRQVHQVXVRI WKHUHVLGHQWV LQDWWHQGDQFHWKDWEDQQLQJSDUNLQJRQ ERWK VLGHV RI *UHHQZRRG 'ULYH EHWZHHQ (GZDUGV 5RDG DQG ,QRURP 3ODFH UHIHUDWWDFKHGPDSZRXOGVROYHWKHLUFRQFHUQVDQGDOORZIUHHIORZLQJWZRZD\WUDIILF ,WZDVDFNQRZOHGJHGWKDWUHVLGHQWVDQGWKHLUYLVLWRUVZRXOGKDYHWRSDUNRIIVWUHHW

:KLOH LW ZDV DSSUHFLDWHG WKDW WKH UHVLGHQWV IHOW D EODQNHW EDQ RQ SDUNLQJ LQ WKH VWUHHWZRXOGVROYHWKHLUFRQFHUQVWKH'LUHFWRU 3UHVHQWDWLRQDQG$VVHWVLQGLFDWHGWKDWLWZRXOGEHSUHIHUDEOHWRWUHDWWKHVRXUFHRIWKHSUREOHPUDWKHUWKDQWRLPSRVHD UHVWULFWLRQLQWKHVWUHHW

,WZDVWKHUHIRUHDJUHHGDWWKHPHHWLQJWKDW&U5H\QDUGDQGRIILFHUVZRXOGDSSURDFKWKH8QLYHUVLW\WRGLVFXVVRSWLRQVWRLPSURYHRQFDPSXVSDUNLQJDUUDQJHPHQWV

$Q LQLWLDOPHHWLQJZDVKHOGZLWK8QLYHUVLW\VWDIIRQ0D\ $W WKHPHHWLQJ LWZDVLGHQWLILHG WKDW WKHPDWWHUUHTXLUHG LQSXW IURPWKH([HFXWLYH'LUHFWRU %HQGLJR&DPSXV0U$QGUHZ6NHZHV&U5H\QDUGDQGRIILFHUVZHUHDEOHWRPHHWZLWK0U6NHZHVRQ-XO\

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¶V RZQHUE\SXWWLQJDQRWLFHRQWKHLUZLQGVFUHHQDQGWKHQVHHNWRHVWDEOLVKPRUHVXLWDEOHDUUDQJHPHQWV

Page 75: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$VHULHVRI OHWWHUVDQGHPDLOVEHWZHHQ WKH'LUHFWRU 3UHVHQWDWLRQDQG$VVHWVDQG WKHDXWKRURIWKHSHWLWLRQ0U*HRUJH)ODFNWKHQRFFXUUHGFRSLHVDWWDFKHG

7UDIILF,QIRUPDWLRQ

$ZHHNORQJWUDIILFFRXQWZDVFRQGXFWHG LQ0D\DQGUHFRUGHGDQDYHUDJHRIYHKLFOHVSHUGD\LQ*UHHQZRRG'ULYH7KHWK SHUFHQWLOHVSHHGLHWKHVSHHGDWZKLFKRIDOOYHKLFOHVDUHWUDYHOOLQJOHVVWKDQZDVNPK

)RXU FDUVZHUHUHFRUGHGH[FHHGLQJWKHVSHHGOLPLWRIUHFRUGHGYHKLFOHVIRUWKHZHHN DQGWKHVHHYHQWVRFFXUUHGEHWZHHQSPSPDIWHU8QLYHUVLW\ILQLVKHG 7KHWK SHUFHQWLOHVSHHGRIYHKLFOHVEHWZHHQDPSPZDVNPK NPK $IWHUSPWKLV LQFUHDVHG WRNPK NPK )XUWKHUEHWZHHQDPSP0RQGD\WR)ULGD\RQO\ YHKLFOHV ZHUH WUDYHOOLQJ IDVWHU WKDQ NPK FRPSDUHG WR D WRWDO RI YHKLFOHVWUDYHOOLQJIDVWHUWKDQNPKRXWVLGHWKRVHKRXUVRYHUWKHZHHN

$QDO\VLVRI7UDIILF,QIRUPDWLRQ

3UHYLRXVWUDIILFVWXGLHVKDYHIRXQGWKDWWKHUHLVOLNHO\WREHDQLQFUHDVHLQWUDIILFVSHHGVZKHQRQVWUHHWSDUNLQJLVQRWSUHVHQWDQGWKLV ILQGLQJLVVXSSRUWHGE\WKHUHVXOWVRIWKHWUDIILFVXUYH\2QWKLVEDVLVLWFDQEHFRQFOXGHGWKDWEDQQLQJSDUNLQJRUDYRLGLQJLWPD\UHGXFHVDIHW\LQWKHVWUHHW

7KHWK SHUFHQWLOHVSHHGRINPKLVYHU\ORZFRPSDUHGZLWKRWKHUVWUHHWVLQ%HQGLJRDQG VR WRR WKH ³XQLPSHGHG´ WK SHUFHQWLOH VSHHG RI NPK DQG LQ WKLV FRQWH[W WKHVWUHHWLVFRQVLGHUHGWREHUHODWLYHO\VDIH

,Q UHJDUGV WR WKHFRQFHUQDERXW&)$ WUXFNVDVVXPLQJFDUVDUHSDUNHG OHJDOO\RQERWKVLGHV RI WKH VWUHHW WKHUH LV DW OHDVW PHWUHV ZLGWK RI URDG UHPDLQLQJ 7KLV LVFRQVLGHUHG WR EHPRUH WKDQ VXIILFLHQW IRU D YHKLFOH WR QHJRWLDWH OHJDOPLQLPXP LV PHWUHVDQG&)$YHKLFOHVDUHDPD[LPXPZLGWKRIPHWUHV

$FFRUGLQJWR&RXQFLO¶V,QIUDVWUXFWXUH'HVLJQ0DQXDOVXFKDVWUHHWFDQDFFRPPRGDWHXSWRYHKLFOHVSHUGD\DQGVRFDSDFLW\LVDOVRQRWFRQVLGHUHGDSUREOHPDQGYLVLELOLW\LVYHU\JRRG

2WKHU2SWLRQV

7KH SURSRVDO WR XWLOLVH WKH YDFDQW ODQG DW ,QQRYDWLRQ 3DUN ZDV LQYHVWLJDWHG DQGGLVFXVVHGZLWKWKH 8QLYHUVLW\ KRZHYHUDVLWLVDJUDVVHGVXUIDFHLWGRHVQRWSURYLGHDOOZHDWKHUDFFHVVDQGLVWKHUHIRUHQRWFRQVLGHUHGDSSURSULDWH

7KH %UHQQDQ 3DUN 3RRO FDU SDUN RIIHUV FRQVLGHUDEOH RSSRUWXQLW\ IRU KLJKHU XWLOLVDWLRQUHIHUDWWDFKHGPDS7RHQFRXUDJHWKLVDSDUNLQJGLUHFWLRQDOVLJQKDVEHHQHUHFWHGLQ+RXODKDQ6WUHHWLQUHFHQWPRQWKV

7KH8QLYHUVLW\LVDOVRFRQVLGHULQJRWKHURSWLRQVVXFKDVUHPRYLQJWKHUHTXLUHPHQWIRUDSHUPLWRQDOORUVHOHFWHGFDU SDUNVDQGVHWWLQJXSDV\VWHPIRUGD\SHUPLWV

Page 76: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3ROLF\&RQWH[W

&RXQFLO¶V H[LVWLQJ SROLF\ SRVLWLRQ LV WKDW RQ VWUHHW SDUNLQJ LV SDUW RI WKH UROH RI DUHVLGHQWLDOVWUHHWUHIHUDWWDFKHGUHSRUW

7KHUHDUH EURDGHU UDPLILFDWLRQVIRU WKHFRPPXQLW\RIFKDQJLQJWKHSROLF\WRSURKLELWRQVWUHHWSDUNLQJLQDUHVLGHQWLDOVWUHHW7KHVHLQFOXGH

&UHDWLQJDSUHFHGHQWIRUWKHLQVWDOODWLRQRI1R6WDQGLQJVLJQVLQDQ\UHVLGHQWLDODUHDZKHUHWKHUHLVDQLQWHUIDFHZLWKDPDMRUWUDIILFJHQHUDWRU)RUH[DPSOHLQWKHYLFLQLW\RIWKH4(2

0RYLQJ WKH SUREOHP WR DQRWKHU VWUHHW UDWKHU WKDQ VROYLQJ LW LQFOXGLQJ WKHFRPSRXQGLQJHIIHFWRIWKLV

7KH ILQDQFLDO LPSOLFDWLRQV IRU UDWHSD\HUV LI VXFK DQ DSSURDFK LV DGRSWHG DQG LWVDSSOLFDWLRQ JURZV SDUWLFXODUO\ JLYHQ WKH GLVSHUVHG QDWXUH RI WKH PDMRU WUDIILFJHQHUDWRUV WKURXJKRXW WKH FLW\ 7KH FRVW LV QRW UHVWULFWHG WR WKH LQVWDOODWLRQ DQGPDLQWHQDQFHRIWKHVLJQVEXWDOVRWKHHQIRUFHPHQWRIWKHUHVWULFWLRQVLPSRVHG,WLVOLNHO\WKDWDGGLWLRQDOWUDIILFLQVSHFWRUVZRXOGQHHGWREHHPSOR\HGWRDFWLYHO\HQIRUFHWKHVHDUHDV

7KH HYHQWXDO ORVV RI WKH QRUPDO XVH RI UHVLGHQWLDO VWUHHWV IRU SDUNLQJ E\ UHVLGHQWVDQGWKHLUYLVLWRUV

7KH HYHQWXDO ORVV RI µRYHUIORZ¶ SDUNLQJ LQ UHVLGHQWLDO VWUHHWV QHDU PDMRU WUDIILFJHQHUDWRUVZLWKQRSUDFWLFDODOWHUQDWLYHVLQSODFH

,W KDV EHHQ VXJJHVWHG WKDW *UHHQZRRG 'ULYH LV XQLTXH ,Q WKH FRQWH[W RI LWV WUDIILFIXQFWLRQ WKHUH LV QRWKLQJ WKDW PDNHV *UHHQZRRG 'ULYH XQLTXH LQ FRPSDULVRQ WR RWKHUUHVLGHQWLDOVWUHHWVDQGURDGVDFURVVWKHFLW\,WLVLQIDFWTXLWHW\SLFDO $FFRUGLQJO\WKHULVNRIFUHDWLQJDSUHFHGHQWE\EDQQLQJSDUNLQJLQ*UHHQZRRG'ULYHLVVLJQLILFDQW DQGWKLVPXVWEHFRQVLGHUHGLQDQ\GHFLVLRQ

&RQFOXVLRQ

:KLOHWKHIUXVWUDWLRQRIWKHSHWLWLRQHUVDERXWKDYLQJ³8QLYHUVLW\3DUNLQJ´LQWKHLU VWUHHWLVDFNQRZOHGJHGWKHUHTXLUHGVROXWLRQRI EDQQLQJSDUNLQJLVQRWFRQVLGHUHGWREHWKHEHVWDSSURDFK

7KH8QLYHUVLW\KDVRIIHUHGWRKHOSDGGUHVVWKLVSUREOHPWKURXJKHGXFDWLQJVWXGHQWVDQGRIIHULQJPRUHDWWUDFWLYHRQFDPSXVRSWLRQV7KLV WRJHWKHUZLWKIXUWKHUZRUNE\&RXQFLOWRJHWEHWWHUXWLOLVDWLRQRI WKH%UHQQDQ3DUN3RROFDUSDUN LVFRQVLGHUHGDPXFKEHWWHURSWLRQ

,UUHVSHFWLYHRIWKHRSWLRQFKRVHQWRUHGXFHRUUHPRYHFRPSOHWHO\WKHRQVWUHHWSDUNLQJLQ *UHHQZRRG 'ULYH HYLGHQFH LQGLFDWHV WKDW WUDIILF LV VORZHU ZKHQ WKH YHKLFOHV DUHSUHVHQW7KHUHIRUHLIWKHUHVLGHQWV¶SULPDU\REMHFWLYHLVWRLPSURYHVDIHW\WKHQDFWLRQWRKDYHOHVVSDUNLQJPD\EHFRXQWHUSURGXFWLYH

7KH FUHDWLRQ RI D SUHFHGHQW WR EDQSDUNLQJ LQ UHVLGHQWLDO VWUHHWV LV VLJQLILFDQW DQG WKHUHDVRQVIRUQRWGRLQJWKLVFRQWLQXHWREHUHOHYDQW

Page 77: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$WWDFKPHQWV

0DSRI*UHHQZRRG'ULYH

&RUUHVSRQGHQFH

5HVLGHQWLDO3DUNLQJ3ROLF\

5(&200(1'$7,21

,WLVUHFRPPHQGHGWKDW&RXQFLO

&RQWLQXHWRZRUNZLWK/D7UREH8QLYHUVLW\WRLPSURYHSDUNLQJRSWLRQVRQFDPSXVDQGWRDFKLHYHKLJKHUXWLOLVDWLRQRIWKH%UHQQDQ3DUN3RROFDU SDUN

&RQVLGHU D IXUWKHU UHSRUW RQ WKH HIIHFWLYHQHVV RI PHDVXUHV LPSOHPHQWHG ZLWK WKH8QLYHUVLW\LQVL[PRQWKVWLPH

5HWDLQWKHH[LVWLQJWUDIILFDUUDQJHPHQWVLQ*UHHQZRRG'ULYH

1RWLI\WKHVXEPLWWHUVRIWKHSHWLWLRQ RI&RXQFLOVGHFLVLRQ

027,21

0RYHG&U/HDFK6HFRQGHG&U:LOOLDPV

7KDW&RXQFLOLQVWDOO1R6WDQGLQJ$Q\WLPHVLJQDJH RQERWKVLGHVRI*UHHQZRRG'ULYHWR,QRURP 3ODFH.HQQLQJWRQWRDSSO\EHWZHHQWKHKRXUVRIDPWRSP0RQGD\WR)ULGD\IURP0DUFKWR1RYHPEHUZLWKDUHYLHZDWWKDWWLPH

/267

027,21

0RYHG&U&R[VHFRQGHG&U&KDSPDQ

7KDW&RXQFLOWULDORQHKRXUSDUNLQJUHVWULFWLRQVRQERWKVLGHVRI*UHHQZRRG'ULYHWR,QRURP 3ODFH .HQQLQJWRQ WR DSSO\ IURP DP WR SP0RQGD\ WR )ULGD\ IURP 0DUFKWR1RYHPEHUZLWKDUHYLHZWREHFRQGXFWHGLQ2FWREHU

/267

Page 78: Council Meeting Minutes 5 December 2012

%XLOWDQG1DWXUDO(QYLURQPHQW 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

)857+(5027,21

0RYHG&U&DPSEHOOVHFRQGHG&U/\RQV

7KDW D UHSUHVHQWDWLYH RI WKH UDWHSD\HUV WKH :DUG &RXQFLOORUV WKH &KLHI ([HFXWLYH2IILFHUDQGWKH5HVSRQVLEOH'LUHFWRUPHHWZLWK0U$QGUHZ6NHZHV([HFXWLYH'LUHFWRU%HQGLJR&DPSXV/D7UREH8QLYHUVLW\ LQ WKHQH[W WZRPRQWKV WRFRQVLGHUVKRUWIDOOVRISDUNLQJZLWKLQWKHDUHDDQGGHYHORSDSODQWKDWFDQEHLPSOHPHQWHGZLWKWKHUHWXUQRIWKHVWXGHQWV

&$55,('

Page 79: Council Meeting Minutes 5 December 2012

(FRQRPLF'HYHORSPHQW 5HSRUWV 2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

(&2120,&'(9(/230(17

3529,6,21 2) &$7(5,1* 6(59,&(6 $1' )81&7,21 0$1$*(0(17 $77+(&$3,7$/ %(1',*263(5)250,1*$576&(175($1'7+(%(1',*272:1+$//

'RFXPHQW,QIRUPDWLRQ

$XWKRU 'DYLG/OR\G± 0DQDJHU7KH&DSLWDO

5HVSRQVLEOH 6WDQ/LDFRV'LUHFWRU&LW\)XWXUHV'LUHFWRU

6XPPDU\3XUSRVH

7KHSXUSRVHRIWKLVUHSRUWLVWRVHHN&RXQFLO¶VHQGRUVHPHQWIRUDFDWHULQJFRQWUDFWRUWREH DSSRLQWHG IRU WKH SURYLVLRQ RI FDWHULQJ VHUYLFHV DQG IXQFWLRQ PDQDJHPHQW RQ DFRPPHUFLDOEDVLV DW7KH&DSLWDO%HQGLJR¶V3HUIRUPLQJ$UWV&HQWUH DQG%HQGLJR7RZQ+DOO

3ROLF\&RQWH[W

³:H ZLOO GHYHORS WKH FXOWXUDO DQG FUHDWLYH DVSLUDWLRQV RI WKH FRPPXQLW\ WR PDNH DVLJQLILFDQWFRQWULEXWLRQWRWKH&LW\¶VVRFLDODQGHFRQRPLFSURVSHULW\DQGTXDOLW\RIOLIHIRUDOO´

³:HZLOOSODQIRUDQG PDQDJHDVVHWVIRUWKHEHQHILWRIWKHFRPPXQLW\´

%DFNJURXQG,QIRUPDWLRQ

7KH WHDP DW 7KH &DSLWDO DVVXPHG RQJRLQJ PDQDJHPHQW RI %HQGLJR 7RZQ +DOO LQ)HEUXDU\7KHPDLQUHDVRQVIRUWKHWKHQFKDQJHLQPDQDJHPHQWZHUH WR

6LJQLILFDQWO\ LQFUHDVH DFFHVV WRDQGXVHRI WKH7RZQ+DOO E\ WKH*UHDWHU%HQGLJRFRPPXQLW\ RQDVRXQGFRPPHUFLDOEDVLV

5HOLHYH WKH &XVWRPHU 6HUYLFHV 7HDP RI WKLV UROH D IXQFWLRQ WKH\ KDG SHUIRUPHGUHOXFWDQWO\DVLWZDVQRWDQDUHDRIH[SHUWLVHIRUWKHPDQGKDGGLVWUDFWHGWKHP IURPSHUIRUPLQJWKHLUSULPHUHVSRQVLELOLWLHV

,PSURYHFRPPHUFLDOUHYHQXHVWUHDPVIRUWKHYHQXHDQGRUJDQLVDWLRQDQG

,PSURYHRYHUDOOVXSHUYLVLRQDQG³FXVWRGLDQVKLS´IRUWKHYHQXH

.H\DFKLHYHPHQWV RUPLOHVWRQHVDFKLHYHGLQ LQFOXGH

Page 80: Council Meeting Minutes 5 December 2012

(FRQRPLF'HYHORSPHQW 5HSRUWV 2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KHVXFFHVVIXODFWLYDWLRQRIWKH7RZQ+DOODVDSUHPLHUIXQFWLRQDQGHYHQWVVSDFH$SSUR[LPDWHO\ SHRSOHDWWHQGHG HYHQWVDW WKH7RZQ+DOO LQ7KHUHYHQXHJHQHUDWHGWR&RXQFLO IURP WKHVHDFWLYLWLHVZDVDSSUR[LPDWHO\ZKLFKLVOHVV WKDQWKHSUHYLRXV\HDURIDSSUR[LPDWHO\ 7KLVLVFRPSDUHGWRWKH ILQDQFLDO \HDU ZKLFK LV WKH \HDU SULRU WR 7KH &DSLWDO WDNLQJ RQPDQDJHPHQWUHVSRQVLELOLWLHV,QWKDW\HDUDSSUR[LPDWHO\ SHRSOHDWWHQGHGHYHQWVUHVXOWLQJLQRQO\ UHYHQXH

7KHVXFFHVVIXOGHYHORSPHQWDQG LPSOHPHQWDWLRQRI ³7KH9DKODQG([SHULHQFH´ WKHFREUDQGLQJRI7KH&DSLWDODQG WKH7RZQ+DOO IRU WKHGHOLYHU\RI SUHPLHU IXQFWLRQVDQGHYHQWVSDUWLFXODUO\ZHGGLQJVDQG

7KH VXFFHVVIXO UHDOORFDWLRQ RI H[LVWLQJ VWDIILQJ UHVRXUFHV WR DEVRUE RYHUVLJKW DQGPDQDJHPHQWRIWKHYHQXHDWQRDGGLWLRQDOFRVWWR&RXQFLO

'XHWRFLUFXPVWDQFHVEH\RQGRXUGLUHFWFRQWURO6DQGKXUVW9HQXH0DQDJHPHQW690WKHFRPPHUFLDOFDWHUHUZLWKWKHFRQWUDFWIRUWKH%HQGLJR7RZQ+DOODQG7KH&DSLWDOWKHQZHQW LQWR OLTXLGDWLRQ LQ-XQH 7KLVKDVKDGDVLJQLILFDQW LPSDFWRQRXURSHUDWLRQDQGKDVOHGWRDVORZGRZQLQEXVLQHVVDFWLYLW\WKURXJKWKHVHYHQXHV

5HSRUW

)ROORZLQJ WKHGHSDUWXUHRI690RIILFHUVFRPPHQFHGDSURFHVVRI VHOHFWLRQ IRUDQHZFRPPHUFLDOFRQWUDFWRULQ6HSWHPEHUZLWKDQ([SUHVVLRQRI,QWHUHVWGRFXPHQWEHLQJGHYHORSHGDQGDGYHUWLVHG/RGJHPHQWVFORVHGRQ1RYHPEHU)RXUFRPSDQLHVORGJHGH[SUHVVLRQVRILQWHUHVW

$Q HYDOXDWLRQ SDQHO ZDV FRQYHQHG WR FRQVLGHU WKH H[SUHVVLRQV RI LQWHUHVW 7KHPHPEHUVRIWKLVSDQHOZHUH

'DYLG/OR\G 0DQDJHU7KH&DSLWDO6WHSKHQ+HQGHUVRQ 9HQXH&RRUGLQDWRU7KH&DSLWDO5DFKHO/HH6SHFLDO3URMHFWV0DMRU3URMHFWV0DQDJHUDQG3DXO6KHUZRRG&RQWUDFWV3URFXUHPHQW&RRUGLQDWRU

7KH SDQHO PHW RQ 1RYHPEHU WR FRQVLGHU WKH VXEPLVVLRQV LQ GHWDLO ,W ZDV WKHXQDQLPRXVGHFLVLRQRI WKHSDQHO WRHQWHU LQWRFRQWUDFWQHJRWLDWLRQVZLWK7LVFKD3W\/WGWUDGLQJ DV 7ZHQW\ VLWXDWHG LQ :LOOLDPVRQ 6WUHHW EDVHG RQ WKH ZHLJKWHG 7HQGHU$VVHVVPHQW &ULWHULD RI FDSDELOLW\ FDSDFLW\ DQG YDOXH $ VXPPDU\ RI WKH WHQGHUDVVHVVPHQWSDQHOVZHLJKWHGVFRULQJLVDYDLODEOHRQUHTXHVW

6XEVHTXHQWWRWKLVGHFLVLRQ&RXQFLORIILFHUVDQGWKHUHVSRQVLEOH'LUHFWRUKDYHPHWZLWKWKH'LUHFWRUVRI7LVFKD3W\/WGDQGKDYHGHYHORSHGDEURDGVHWRIFRQGLWLRQVZLWKZKLFKZHZLOOHQWHULQWRGHWDLOHGFRQWUDFWQHJRWLDWLRQV7KHVHFRQGLWLRQVLQFOXGH

5HQWDODQGFRQGLWLRQWHUPVDQG/HYHORIVXEVLGLVHGFRPPXQLW\DFFHVV

Page 81: Council Meeting Minutes 5 December 2012

(FRQRPLF'HYHORSPHQW 5HSRUWV 2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

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

6SHFLDOFRQGLWLRQV

&RPPXQLW\$FFHVV

7KH SDUWLHV KDYH DJUHH WR SURYLGH DFFHVV WR WKH %HQGLJR 7RZQ +DOO IDFLOLW\ LQFOXGLQJFRPPHUFLDO NLWFKHQ RQ WHQ RFFDVLRQV DW WLPHV DJUHHG WR E\ WKH SDUWLHV WDNLQJ LQWRFRQVLGHUDWLRQSHDNFRPPHUFLDODFWLYLW\WLPHV7KHVHWLPHVLQFOXGH

&KULVWPDV'D\(DVWHUIRXUGD\VDQG)LYH RWKHU GDWHV WR EH IL[HG DPLQLPXPRI WZHOYH PRQWKV RXW DQG DJUHHG WR LQDGYDQFH

([FOXVLYLW\

:LWKWKHH[FHSWLRQRIWKHGDWHVRXWOLQHGDERYH WKHFRQWUDFWRUZLOOKDYHH[FOXVLYLW\IRUWKHSURYLVLRQRIFDWHULQJVHUYLFHV WR7KH&DSLWDODQG%HQGLJR7RZQ+DOO

&RQWUDFW QHJRWLDWLRQ

7KH SDUWLHV KDYH DJUHHG LQ SULQFLSOH WR HQWHU LQWR GHWDLOHG FRQWUDFW GHOLEHUDWLRQVLQFOXGLQJEXWQRWOLPLWHGWRPHQXSULFLQJKLULQJUDWHVVHUYLFHGHOLYHU\VWDQGDUGVDQGWKHXVHSD\PHQWDQGRZQHUVKLSRISODQWDQGHTXLSPHQW

3ULRULW\,PSRUWDQFH

7KLVGHFLVLRQLVRIKLJKLPSRUWDQFHDVWKHRQJRLQJYLDELOLW\RIWKHVHWZRYHQXHVLVUHOLDQWRQDTXDOLW\FRQWUDFWRUEHLQJLQSODFHLPPHGLDWHO\

7LPHOLQHV

:HHQYLVDJHWREHLQDSRVLWLRQWRFRPPHQFHWKHFRQWUDFWZLWKWKHQHZFRQWUDFWRUE\WKHHQGRI-DQXDU\7KHFRQWUDFWZLOOEHIRUDQLQLWLDOSHULRGRIWZR\HDUVZLWKWKHRSWLRQRIDIXUWKHUWZR\HDUVDQGUHYLHZHGWKHUHDIWHU

&RQVXOWDWLRQ&RPPXQLFDWLRQ

7KHUH ZDV DQ RSHQ DQG WUDQVSDUHQW ([SUHVVLRQ RI ,QWHUHVW SURFHVV ZKLFK DWWUDFWHGUHDVRQDEOHLQWHUHVW

Page 82: Council Meeting Minutes 5 December 2012

(FRQRPLF'HYHORSPHQW 5HSRUWV 2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5HVRXUFH,PSOLFDWLRQV

,WLVEXGJHWHGWKDWWKHDFWLYLW\LQWKHVHWZRYHQXHVZLOOJHQHUDWHDSSUR[LPDWHO\LQ UHYHQXH DQG LQ H[SHQGLWXUH UHVXOWLQJ LQ D QHW VXUSOXV RQ DFWLYLWLHV RIDSSUR[LPDWHO\ IRU WKH ILQDQFLDO \HDU ,Q DGGLWLRQ WR UHQWDO OHDVH IHHV UDQJLQJIURPEHWZHHQ SHUDQQXPGHSHQGLQJRQZKDW\HDURIWKHDJUHHPHQWZHDUHLQ

&RQFOXVLRQ

:HKDYHKDGWKHRSSRUWXQLW\WRZRUNZLWKDQGREVHUYH7LVFKD3W\/WGDQGEHOLHYHWKH\DUHDKLJKO\UHSXWDEOHFRPSDQ\ZLWKD ORFDO UHSXWDWLRQ IRUTXDOLW\SURGXFHDQGVHUYLFH:HIHHO WKDW WKH\FDQPHHW WKHFDWHULQJDQG IXQFWLRQQHHGVRI WKHVH LPSRUWDQW&RXQFLOIDFLOLWLHV

7KH PRGHO RI ZRUNLQJ ZLWK D VWURQJ ORFDO EXVLQHVV RQ WKH GHOLYHU\ RI FDWHULQJ DQGIXQFWLRQVLQWKHVHLFRQLFEXLOGLQJVLVDVXVWDLQDEOHDQGYLDEOHRSWLRQ

:H EHOLHYH WKH DUUDQJHPHQW RXWOLQHG DERYH ZLOO OHDG WR VWURQJHU XWLOLVDWLRQ RI WKHVHEXLOGLQJV SURYLGLQJ PRUH PHPEHUV RI WKH FRPPXQLW\ DFFHVV WR WKHP XWLOLVLQJ WKHEXLOGLQJVIRUWKHEHQHILWRIWKHFRPPXQLW\DVDZKROH

5(&200(1'$7,21

7KDW&RXQFLO HQGRUVH7LVFKD3W\/WG DV WKH FRPPHUFLDO FRQWUDFWRU IRU WKHSURYLVLRQRIFDWHULQJVHUYLFHVDQGIXQFWLRQPDQDJHPHQWDW7KH&DSLWDO± %HQGLJR¶V 3HUIRUPLQJ$UWV&HQWUHDQGWKH%HQGLJR7RZQ+DOOIRUDWHUPRIWZR\HDUVZLWKDQRSWLRQIRUDQRWKHUWZR\HDUVEDVHGRQSHUIRUPDQFH

5(62/87,21

0RYHG&U:HUDJRGD6HFRQGHG&U)\IIH

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 83: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&20081,7<$1'&8/785(

352326(' .$1*$522 )/$7 $48$7,& /(,685( &(175( &20081,7<5()(5(1&(*5283

'RFXPHQW,QIRUPDWLRQ

$XWKRUV 6WDQ/LDFRV± 'LUHFWRU&LW\)XWXUHV5DFKHO/HH 0DQDJHU0DMRU3URMHFWV

5HVSRQVLEOH 'LUHFWRU 6WDQ/LDFRV'LUHFWRU&LW\)XWXUHV

6XPPDU\3XUSRVH

7KH SXUSRVH RI WKLV UHSRUW LV WR EULHI WKH QHZ &RXQFLO RQ WKH FXUUHQW VWDWXV RI WKHSURSRVHG.DQJDURR)ODW$TXDWLF/HLVXUH&HQWUHDQGWRUHFRPPHQGWKHHVWDEOLVKPHQWRID EURDGUDQJLQJ &RPPXQLW\ 5HIHUHQFH *URXS WR DVVLVW WKH 3URMHFW 7HDP SODQ DQGGHVLJQWKHIDFLOLW\DQGDVVLVW&RXQFLODGYRFDWHIRUDQGIXQGUDLVHWRHQDEOHWKHGHOLYHU\RIWKLVPXFKDQWLFLSDWHGPDMRUIDFLOLW\RYHUWKHQH[WIHZ\HDUV

3ROLF\&RQWH[W

&RXQFLO3ODQ 3ODQDQGLPSOHPHQWLGHQWLILHG&LW\SURMHFWV

&RQWLQXHSODQQLQJGHVLJQDQGVHHNLQJIXQGLQJIRUWKHSURSRVHG$TXDWLF/HLVXUH&HQWUHLQ.DQJDURR)ODW

5HSRUW

%DFNJURXQG

7KHGHYHORSPHQWRIDVHFRQG LQGRRU$TXDWLF/HLVXUH&HQWUH IRU*UHDWHU%HQGLJRDQGVSHFLILFDOO\LQWKH.DQJDURR)ODWDUHDKDVEHHQXQGHUFRQVLGHUDWLRQIRUPDQ\\HDUVQRZ

([WHQVLYHEDFNJURXQGSDSHUVVWUDWHJ\DGRSWLRQDQGSULRUDQDO\VLVRQWKHSURMHFWFDQEHFLUFXODWHGVHSDUDWHO\WRDOOQHZ&RXQFLOORUVXSRQUHTXHVW

$W LWV PHHWLQJ RI )HEUXDU\ &RXQFLO UHVROYHG WR FRQWLQXH SODQQLQJ DQG GHVLJQZRUNRQWKHSURMHFWDQGWRFRPPHQFHDWWUDFWLQJVXSSRUWDQGIXQGLQJIRUWKHGHYHORSPHQWRIWKH&HQWUH

$IWHUDFRPSHWLWLYH WHQGHUSURFHVVDW LWVPHHWLQJRI-XQH&RXQFLO UHVROYHG WRDSSRLQW 3HGGOH 7KRUSH $UFKLWHFWV DV SURMHFW DUFKLWHFWV DQG GHVLJQ FRQVRUWLD OHDGHU LQDVVRFLDWLRQZLWK

%RQQDFL*URXS6WUXFWXUDODQG&LYLO(QJLQHHUV:DWHUPDQ$+:%XLOGLQJ6HUYLFHV+\GUDXWHFK3RRO(QJLQHHULQJ

Page 84: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

6ODWWHU\&RVW3ODQQLQJ)ORUHQFLDJ6PLWK%XLOGLQJ6XUYH\RU)250LXP/DQGVFDSLQJ/DQGVFDSLQJ0DUVKDOO'D\$FRXVWLFV*7$7UDIILFDQG3DUNLQJ6XVWDLQDEOH%XLOW(QYLURQPHQWV(6'2QH*URXS$FFHVVLELOLW\DQG6.&RUS&DWHULQJ&DIpGHVLJQ

IRU WKH VWDJHG SURYLVLRQ RI GHVLJQ HQJLQHHULQJ DQG DOOLHG VHUYLFHV IRU WKH SURSRVHG&HQWUH

7KHGHVLJQ WHDPDUHZRUNLQJ WRD VSHFLILF EULHI DJUHHGZLWK&RXQFLO WKDW DPRQJRWKHUWKLQJVLQFRUSRUDWHVWKHIROORZLQJHVVHQWLDOHOHPHQWV

'HYHORSPHQWRIWKH&HQWUHRQWKHH[LVWLQJ.DQJDURR)ODW&RPPXQLW\&HQWUHVLWHRQ%URZQLQJ6WUHHW7KH DGDSWLYH UHXVH RI WKH H[LVWLQJ EXLOGLQJ LI GHVLUDEOH DQG SUDFWLFDO IURP ERWK DGHVLJQDQGILQDQFLDOSHUVSHFWLYHPHWUHVZLPPLQJSRRO/HDUQWR6ZLP3RRO/HLVXUH3RRO7RGGOHUV3RRO$GYHQWXUH6SODVK3DUN LISRVVLEOH&KLOGUHQ¶VEHDFKHQWU\VSODVKSOD\SRRO:DWHU6OLGHV LI SRVVLEOH3URJUDP3RRO:DUP:DWHU([HUFLVH3RRO 6SD:HOOQHVVFHQWUHDQGDOOLHGSURIHVVLRQDOVXLWHV*\PQDVLXP3URJUDP5RRPV&UqFKH LIGHHPHGQHFHVVDU\&DIp:HWDQG'U\&KDQJHURRPV DQGJURXSPXOWLXVHFKDQJHURRPV5HFHSWLRQDQGHQWU\DUHDV6LWH GHYHORSPHQW LQFOXGLQJ ODQGVFDSH DUFKLWHFWXUH DQG ODQGVFDSH LQWHUIDFHZLWK%URZQLQJ6WUHHW5HVHUYHDQG*DWHZD\3DUNDQG&DUSDUNLQJDQGEXVDFFHVVDQG$QLQGLFDWLYHSURMHFWEXGJHWRIPLOOLRQGROODUV

&RXQFLOZLOOEHSUHVHQWHGYDULRXVGHVLJQRSWLRQVDVWKH\FXUUHQWO\H[LVWDQG LQGLFDWLYHFRVWSODQQLQJLQWKHQHDUIXWXUH

&RPPXQLW\5HIHUHQFH*URXS

,W LVFRQVLGHUHGGHVLUDEOH WRHVWDEOLVKDEURDGUDQJLQJ&RPPXQLW\5HIHUHQFH*URXS WRZRUN ZLWK WKH 3URMHFW 7HDP LQ PRYLQJ IRUZDUG ZLWK SURMHFW SODQQLQJ DQG GHVLJQFRPPXQLW\ LQSXW DQG HQJDJHPHQW DQG KHOSLQJ &RXQFLO ZLWK WKH DOOLPSRUWDQW WDVN RIDWWUDFWLQJVXSSRUWDQGIXQGLQJIURPJRYHUQPHQWFRUSRUDWHDQGFRPPXQLW\VRXUFHVRYHUWKHQH[WIHZ\HDUV

5HFHQWO\WKHSXEOLFFDOOZDVSXWRXWLQYLWLQJLQWHUHVWLQMRLQLQJWKH5HIHUHQFH*URXS

Page 85: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$IWHUDVHULHVRI LQWHUYLHZVRI WKRVHSHRSOH WKDWH[SUHVVHG LQWHUHVWWRJHWKHUZLWKVRPHSURDFWLYH ³WDSSLQJ RQ VKRXOGHUV¶ RI SHUWLQHQW VWDNHKROGHU UHSUHVHQWDWLYHV DQG NQRZQFRQWULEXWRUVDVHOHFWLRQFRPPLWWHHFRPSULVLQJ

&U%DUU\/\RQV6WDQ/LDFRV3URMHFW'LUHFWRU5DFKHO/HH0DQDJHU0DMRU3URMHFWV/LQG\3KHJDQ&DSLWDO3URMHFWV&RRUGLQDWRU5HFUHDWLRQ

UHFRPPHQGV WR &RXQFLO WKH DSSRLQWPHQW RI WKH IROORZLQJ GLYHUVH DQG FRPPLWPHQWLQGLYLGXDOVWRIRUPWKH&RPPXQLW\5HIHUHQFH*URXS

3HUVRQ 3ULPDU\LQWHUHVWDQGRUNH\VWUHQJWK

&DUO%DUNPH\HU 6ZLPPLQJ&OXEVHFWRU5HJLRQDO3UHVLGHQW$ODQ%HVOH\ .DQJDURR)ODW&RPPXQLW\(QWHUSULVH$QGUHZ&DPHURQ +HDOWK6HFWRU.DQJDURR)ODWKHDOWKSUDFWLWLRQHU&KULVWLQH%UXQQHU &RPPXQLW\*HQHUDO-LOO%DUNHU .DQJDURR)ODW5RWDU\*HQHUDO&RPPXQLW\7LP*HQWOH 0DUNHWLQJDQG*UDSKLF'HVLJQ+HDWKHU2GJHUV 3ULQFLSDO.DQJDURR)ODW3ULPDU\6FKRRO+HDWKHU*DUWVLGH .DQJDURR)ODW/LRQV&OXE6KHOOH\0XOTXHHQ 6SRUWV)RFXV'DYH5LFKDUGVRQ %XVLQHVV DQG%HQGLJR3URIHVVLRQDO6HUYLFHV*URXS&KDLU%HQ0DZ $JHG&DUH6HFWRU««7%$«« <RXWK± SHQGLQJ± FXUUHQWO\DVNLQJ*LUWRQ&&%%66&HWF*HRII%RZ\HU .DQJDURR)ODW&RPPXQLW\(QWHUSULVHDQG.)6SRUWV&OXE&KHU\O$[HOO &RPPXQLW\ *HQHUDO&U%DUU\/\RQV &RXQFLOORU&U5RG)\IIH &RXQFLOORU&U(OLVH&KDSPDQ &RXQFLOORU

$VDFROOHFWLYHWKHJURXSKDVWKHIROORZLQJDWWULEXWHV

7KH\DOO µEHOLHYH´ LQ WKHSURMHFWDQGKDYHDZLOOLQJQHVV WRKHOS VHH LWGHOLYHUHG LQDVRXQGPDQQHURYHUWKHQH[WIHZ\HDUV&RPPHUFLDODQGRUFRPPXQLW\DFXPHQ+DYH VWURQJ FRQQHFWLRQV LQWR WKH .DQJDURR )ODW DQG EURDGHU *UHDWHU %HQGLJRFRPPXQLW\DQG&RPHIURPGLYHUVHSURIHVVLRQVDQGLQWHUHVWJURXSV

,W LV HQYLVDJHG WKDW WKH&RPPXQLW\5HIHUHQFH*URXSZRXOGPHHW DERXW WKUHH WLPHVD\HDURUPRUHIUHTXHQWO\LIQHFHVVDU\

Page 86: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3URMHFW*RYHUQDQFH

6RXQG SODQQLQJ GHVLJQ DQGSURMHFW GHOLYHU\ QHFHVVLWDWHV WKH HQJDJHPHQW DQG FDUHIXOPDQDJHPHQW RI VSHFLDOLVW SHUVRQQHO DQG HQVXULQJ FOHDU UROH FODULW\ DQG DZHOOGHILQHGFKDLQRIFRPPDQGDQGDFFRXQWDELOLW\WKURXJKRXWSURMHFWGHYHORSPHQW7KHPDQDJHPHQWVWUXFWXUHSURSRVHGIRUWKLVPDMRUSURMHFWLVEHVWVXPPDULVHGDV IROORZV

5HVRXUFH,PSOLFDWLRQV

7KLV \HDU¶V EXGJHW LQFRUSRUDWHV VXIILFLHQW IXQGLQJ WR DGYDQFH WKH SODQQLQJDQGGHVLJQRIWKHSURMHFWWRWKHQH[WLPSRUWDQWPLOHVWRQHRIWKHSURMHFW EHLQJVFKHPDWLFGHVLJQVWRZQSODQQLQJSHUPLWVXEPLVVLRQDQGDFFXUDWHFRVWSODQQLQJ

5HVRXUFLQJWKH&RPPXQLW\5HIHUHQFH*URXSFDQEHDEVRUEHGZLWKLQH[LVWLQJRSHUDWLQJEXGJHWV

5(&200(1'$7,21

7KDW WKH *UHDWHU %HQGLJR &LW\ &RXQFLO HQGRUVHV WKH HVWDEOLVKPHQW RI D &RPPXQLW\5HIHUHQFH *URXS IRU WKH SURSRVHG .DQJDURR )ODW $TXDWLF /HLVXUH &HQWUH SURMHFW DVRXWOLQHGLQWKHERG\RIWKHUHSRUW

5(62/87,21

0RYHG&U/\RQV6HFRQGHG&U)\IIH

7KDW WKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

&(2

&RUH3URMHFW*URXS

3URMHFW 'LUHFWRU DQG WKH0DQDJHUV RI 0DMRU 3URMHFWVDQG 5HFUHDWLRQ DQG 3URMHFW0DQDJHURQFHDSSRLQWHG

&RXQFLO

&RPPXQLW\5HIHUHQFH*URXS

'HVLJQ&RQVRUWLD$UFKLWHFWV(QJLQHHUV3ODQQHUV6SHFLDOLVWV

&URVV2UJDQLVDWLRQ

5HIHUHQFH*URXS

Page 87: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

%(1',*2%$1.7+($75(3(5)250$1&(68%6,'<352*5$0

'RFXPHQW,QIRUPDWLRQ

$XWKRU 5RKDQ3KLOOLSV$UWV2IILFHU'HE 6LPSVRQ $FWLQJ 0DQDJHU &RPPXQLW\ DQG &XOWXUDO'HYHORSPHQW

5HVSRQVLEOH 3DXOLQH*RUGRQ'LUHFWRU&RPPXQLW\:HOOEHLQJ'LUHFWRU

6XPPDU\3XUSRVH

)RU&RXQFLOWRFRQVLGHUDSSOLFDWLRQVUHFHLYHGIRUWKH7KHDWUH3HUIRUPDQFH6XEVLG\3URJUDPDQGHQGRUVHWKH$VVHVVPHQW3DQHO¶VUHFRPPHQGDWLRQVLQUHODWLRQWRWKRVHDSSOLFDWLRQV

3ROLF\&RQWH[W

&RXQFLO3ODQ5HIHUHQFH

5HFRJQLVHVXSSRUWDQGFHOHEUDWHFXOWXUDODQGHWKQLFGLYHUVLW\

6XSSRUW D GLYHUVH DQG YLEUDQW DUWV PXVLF DQG FXOWXUDO SURJUDP WKDW FKDOOHQJHVFRPPXQLW\WKLQNLQJ DQGHQFRXUDJHVDSSUHFLDWLRQDQG SDUWLFLSDWLRQ

%DFNJURXQG,QIRUPDWLRQ

7KH7KHDWUH3HUIRUPDQFH6XEVLG\3URJUDP3URJUDPZDVDGRSWHGE\&RXQFLOLQZLWK LWV DLP EHLQJ WR VXSSRUW HPHUJLQJ PXVLFLDQV DQG PXVLFDO JURXSV ZLWKLQ *UHDWHU%HQGLJR7KH3URJUDPZDVPRGHOOHGRQWKHZHOOHVWDEOLVKHG'XGOH\+RXVH&RPPXQLW\+LUH6XEVLG\3URJUDP6XSSRUWIRUD ILYHKRXUSHUIRUPDQFHSDFNDJHLQWKH%HQGLJR%DQN7KHDWUHSDUWRI7KH&DSLWDO± %HQGLJR¶V3HUIRUPLQJ$UWV&HQWUH LVRIIHUHGWKURXJKWKH3URJUDP7KHSHUIRUPDQFHSDFNDJH LQFOXGHVYHQXHKLUHSOXV WHFKQLFDO IURQW RI KRXVHDQGWLFNHWLQJVXSSRUW

7KHIROORZLQJJXLGHOLQHVDUHDSSOLFDEOHWRWKH3URJUDP

3URSRVDOVZLOOVHHNWRSURPRWHLQQRYDWLYHSHUIRUPDQFHVIURP QHZDQGHPHUJLQJPXVLFLDQVEDVHGZLWKLQ*UHDWHU%HQGLJR6WDII IURP 7KH &DSLWDO DQG &RPPXQLW\ DQG &XOWXUDO 'HYHORSPHQW 8QLW DUHUHVSRQVLEOHIRUDVVHVVLQJDOODSSOLFDWLRQVUHFHLYHG,Q DVVHVVLQJ DSSOLFDWLRQV FRQVLGHUDWLRQ LV WR EH JLYHQ WR WKH TXDOLW\ RI WKHSURSRVDOVDVZHOODVSURPRWLQJQHZDQGHPHUJLQJZRUNDFURVVDYDULHW\RIPXVLFVW\OHV$PD[LPXPRIIRXU FRPPXQLW\DQGRULQGLYLGXDOSURSRVDOVFDQEHVXSSRUWHGSHUDQQXP

Page 88: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$V WKH 3URJUDP LV WDUJHWHG DW QHZ DQG HPHUJLQJ PXVLFLDQV 7KH &DSLWDO DQG&RPPXQLW\ DQG &XOWXUDO 'HYHORSPHQW 8QLWV ZLOO DOVR VXSSRUW WKH PDUNHWLQJ RI WKHSHUIRUPDQFHV

3UHYLRXV&RXQFLO'HFLVLRQV'DWHV

7KH3URJUDPZDVDGRSWHGE\&RXQFLOLQDVSDUWRI7KH&DSLWDO¶V&RPPXQLW\$FFHVV,QLWLDWLYH

5HSRUW

7KH3URJUDPURXQGZDVSURPRWHGWKURXJKDYDULHW\RIPHGLXPVLQFOXGLQJDPHGLDUHOHDVHWKH$UWV(%XOOHWLQZKLFKLVGLVWULEXWHGYLDHPDLOWRVXEVFULEHGKRXVHKROGVDQG&LW\RI*UHDWHU%HQGLJR¶VZHEVLWH

)LYH DSSOLFDWLRQVZHUH UHFHLYHG IRU WKLV 3URJUDP URXQG XS IURP WKUHH LQ WKH SUHYLRXVURXQG

&RQVLVWHQWZLWKWKH3URJUDPJXLGHOLQHVLQPDNLQJLWVUHFRPPHQGDWLRQVWKH$VVHVVPHQW3DQHOFRQVLGHUHGWKHTXDOLW\DVZHOODVWKHGLYHUVLW\RI WKHSURSRVDOV 7KH$VVHVVPHQW3DQHOKDVUHFRPPHQGHGWKDWWKHIROORZLQJIRXUDSSOLFDWLRQVEHVXSSRUWHG

1RUP *UD\ -D]]WHW ³7KH $PHULFDQ 6RQJERRN´ $ SLHFH -D]] HQVHPEOHSOD\LQJWKHSRSXODUVWDQGDUGVWKDWZHUHZULWWHQE\WKHJUHDWVRQJFUDIWVPHQDQGZRUGVPLWKVRIWKH$PHULFDQ6RQJERRNHUD

%UHQGD.LQVHOOD³9LYDOD'LYD´7KLVSHUIRUPDQFHDLPVWREULQJWKHZRQGHUIXODUWIRUPRIRSHUDWRDQDXGLHQFHLQDQLQWLPDWHLQIRUPDWLYHLQWHUDFWLYHDQGHQJDJLQJPDQQHU

'HJUHHV6RXWK ³'HJUHHV6RXWK´&RQWHPSRUDU\FODVVLFDOYRFDOPXVLFIURPWKHWKVWFHQWXULHV ERWKDFDSHOODDQGZLWKSLDQRDFFRPSDQLPHQW

%HQGLJR6\PSKRQ\2UFKHVWUD³%UDQGHQEXUJLQ%HQGLJR´:RUNVKRSVIRUPXVLFLDQVZLWKLQWKHFRPPXQLW\RQ%DURTXHPXVLFFXOPLQDWLQJLQDSHUIRUPDQFHRID%DFK%UDQGHQEXUJ&RQFHUWRDORQJZLWKRWKHUVPDOOHUZRUNVIURPWKHSHULRG

$VWKH3URJUDPJXLGHOLQHVVWLSXODWHWKDWDPD[LPXPRIIRXUSURSRVDOVFDQEHVXSSRUWHGSHUDQQXPRQHRIWKHILYHDSSOLFDWLRQVUHFHLYHGKDVQRWEHHQUHFRPPHQGHGIRUVXSSRUW7KH $VVHVVPHQW 3DQHO QRWHG WKDW ERWK WKH DSSOLFDQW LQ TXHVWLRQ DQG WKH %HQGLJR6\PSKRQ\2UFKHVWUD KDYH SUHYLRXVO\ UHFHLYHG VXSSRUW WKURXJK WKH3URJUDP KRZHYHUWKH %HQGLJR 6\PSKRQ\ 2UFKHVWUD¶V SURSRVDO ZDV FRQVLGHUHG WR RIIHU VWURQJHUFRPPXQLW\ EHQHILWV GXH WR LWV ZRUNVKRS QDWXUH DQG WKH SRWHQWLDO WR HQJDJH PDQ\GLIIHUHQW PXVLFLDQV 7KH DSSOLFDQW LQ TXHVWLRQ ZLOO EH HQFRXUDJH WR FRQVLGHU IXWXUH3URJUDPURXQGV

3ULRULW\,PSRUWDQFH

7KH3URJUDPZDVGHYHORSHG WR ILOO DJDS LQ%HQGLJR¶VSHUIRUPLQJDUWVHQYLURQPHQW WRSURYLGHDQRSSRUWXQLW\ IRU ORFDOPXVLFLDQV WRGHYHORSDQGSUHVHQWSHUIRUPDQFHVZLWKLQ7KH&DSLWDOFRPSOH[

Page 89: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7LPHOLQHV

6KRXOG &RXQFLO HQGRUVH WKH UHFRPPHQGDWLRQV FRQWDLQHG ZLWKLQ WKLV UHSRUW WKH ILUVWSHUIRUPDQFHRI WKH3URJUDPVHULHVZLOORFFXURQ)ULGD\0DUFKZLWKWKH ODVWRQ)ULGD\6HSWHPEHU

5LVN$QDO\VLV

7KH3URJUDPIRUPVDQLQWHJUDOFRPSRQHQWRI&LW\RI*UHDWHU%HQGLJR¶VVXSSRUWIRUQHZDQG HPHUJLQJ PXVLFLDQV ZLWK *UHDWHU %HQGLJR 7KHUH DUH RWKHUZLVH YHU\ OLPLWHGRSSRUWXQLWLHVIRUVXFKPXVLFLDQVWRDFFHVVDQGVKRZFDVHWKHLUWDOHQWVDWYHQXHVVLWXDWHGZLWKLQWKHFRYHWHG 9LHZ6WUHHW$UWV3UHFLQFW

&RQVXOWDWLRQ&RPPXQLFDWLRQ

,QWHUQDO&RQVXOWDWLRQ

&RQVLVWHQWZLWKWKH3URJUDPJXLGHOLQHVDSSOLFDWLRQVZHUHDVVHVVHGE\'DYLG/OR\GDQG6WHSKHQ +HQGHUVRQ IURP 7KH &DSLWDO %HFDXVH RI KLV SHUVRQDO DVVRFLDWLRQ ZLWK WKH%HQGLJR6\PSKRQ\2UFKHVWUDDSSOLFDWLRQ5RKDQ3KLOOLSV $UWV2IILFHU± &RPPXQLW\DQG&XOWXUDO'HYHORSPHQW8QLW LQWURGXFHG WKHDSSOLFDWLRQVEXW WKHQDEVHQWHGKLPVHOI IURPWKH$VVHVVPHQW3DQHOSURFHVV

([WHUQDO&RQVXOWDWLRQ

7KH3URJUDPURXQGZDVSURPRWHGWKURXJKDYDULHW\RIPHGLXPVLQFOXGLQJDPHGLDUHOHDVHWKH$UWV(%XOOHWLQZKLFKLVGLVWULEXWHGYLDHPDLOWRVXEVFULEHGKRXVHKROGVDQG&LW\RI*UHDWHU%HQGLJR¶VZHEVLWH

5HVRXUFH,PSOLFDWLRQV

7KH 7KHDWUH LV PDQDJHG E\ 7KH &DSLWDO DQG WKH 3URJUDP LV DGPLQLVWHUHG E\ WKH&RPPXQLW\DQG&XOWXUDO'HYHORSPHQW8QLW7KUHHSHUIRUPDQFHVZHUHVXSSRUWHGWKURXJKWKH3URJUDPVHULHVZLWKWKHFRVWWR7KH&DSLWDOEHLQJRIZKLFKZDVIRUWHFKQLFDOVXSSRUW

7KHYDOXHRIWKH3URJUDPVHULHVJUDQWLQWHUPVRIUHYHQXHIRUJRQHWRVXSSRUWIRXUSHUIRUPDQFHVZRXOGEHDSSUR[LPDWHO\

%XGJHW$OORFDWLRQLQWKH&XUUHQW)LQDQFLDO<HDU<HV3UHYLRXV&RXQFLO6XSSRUW <HV([WHUQDO)XQGLQJ6RXUFHV1LO$Q\NQRZQRUDQWLFLSDWHGYDULDQFHWREXGJHW1LO3URMHFWHGFRVWVIRUIXWXUHILQDQFLDO\HDUV

Page 90: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&RQFOXVLRQ

7KH7KHDWUH3HUIRUPDQFH6XEVLG\3URJUDPZDVDGRSWHGE\&RXQFLO LQDVSDUWRI7KH &DSLWDO¶V &RPPXQLW\ $FFHVV ,QLWLDWLYH ZLWK LWV DLP EHLQJ WR VXSSRUW HPHUJLQJPXVLFLDQVDQGPXVLFDOJURXSVZLWKLQ*UHDWHU%HQGLJR3UHYLRXVURXQGVRIWKH3URJUDPKDYH UHVXOWHG LQ RXWVWDQGLQJ SHUIRUPDQFHV EHLQJ SUHVHQWHG WKDW KDYH DWWUDFWHG JRRGDXGLHQFHV

7KH DSSOLFDWLRQV UHFRPPHQGHG IRU VXSSRUW WKURXJK WKH 3URJUDP HQFRPSDVV DYDULHW\RIPXVLFVW\OHVLQFOXGLQJVRORFKDPEHUDQGHQVHPEOHSHUIRUPDQFHV

$WWDFKPHQWV

7KHDWUH3HUIRUPDQFH6XEVLG\,QIRUPDWLRQDQG$SSOLFDWLRQIRUP

5(&200(1'$7,21

7KDW&RXQFLOHQGRUVHWKDWWKHIROORZLQJIRXUDSSOLFDWLRQVEHVXSSRUWHGWKURXJKWKH7KHDWUH3HUIRUPDQFH 6XEVLG\3URJUDP

1RUP*UD\-D]]WHW³7KH$PHULFDQ6RQJERRN´%UHQGD.LQVHOOD³9LYDOD'LYD´'HJUHHV6RXWK³'HJUHHV6RXWK´%HQGLJR6\PSKRQ\2UFKHVWUD³%UDQGHQEXUJLQ%HQGLJR´

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U&DPSEHOO

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 91: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

'8'/(<+286(&20081,7<+,5(68%6,'<

'RFXPHQW,QIRUPDWLRQ

$XWKRU 5RKDQ3KLOOLSV$UWV2IILFHU'HE 6LPSVRQ $FWLQJ 0DQDJHU &RPPXQLW\ DQG &XOWXUDO'HYHORSPHQW

5HVSRQVLEOH 3DXOLQH*RUGRQ'LUHFWRU&RPPXQLW\:HOOEHLQJ'LUHFWRU

6XPPDU\3XUSRVH

)RU &RXQFLO WR FRQVLGHU DSSOLFDWLRQV UHFHLYHG IRU WKH 'XGOH\ +RXVH &RPPXQLW\+LUH6XEVLG\3URJUDPDQGHQGRUVHWKH$VVHVVPHQW3DQHO¶VUHFRPPHQGDWLRQVLQUHODWLRQWRWKRVHDSSOLFDWLRQV

3ROLF\&RQWH[W

&RXQFLO3ODQ5HIHUHQFH

5HFRJQLVHVXSSRUWDQGFHOHEUDWHFXOWXUDODQGHWKQLFGLYHUVLW\

6XSSRUW D GLYHUVH DQG YLEUDQW DUWV PXVLF DQG FXOWXUDO SURJUDP WKDW FKDOOHQJHVFRPPXQLW\WKLQNLQJ DQGHQFRXUDJHVDSSUHFLDWLRQDQG SDUWLFLSDWLRQ

%DFNJURXQG,QIRUPDWLRQ

7KH'XGOH\+RXVH&RPPXQLW\+LUH6XEVLG\3URJUDP 3URJUDPZDVDGRSWHGE\&RXQFLOLQ7KH3URJUDPFRQWULEXWHV WR &RXQFLOVDLPRISURYLGLQJRSSRUWXQLWLHV IRUDUWLVWVOLYLQJZLWKLQWKHPXQLFLSDOLW\WRKRVW ORFDODUWVH[KLELWLRQVDQG HYHQWVLQ WKH9LHZ6WUHHW$UWV 3UHFLQFW 7KH SULPDU\ IRFXV RI 'XGOH\ +RXVH LV WR SURYLGH DQ DFFHVVLEOH DQGDIIRUGDEOHVSDFHIRUORFDODUWLVWLFH[SUHVVLRQ

'XGOH\+RXVHLVRZQHGDQGRSHUDWHGE\WKH&LW\RI*UHDWHU%HQGLJR,WLVDGPLQLVWHUHGWKURXJK7KH&DSLWDO %HQGLJRV3HUIRUPLQJ$UWV&HQWUH ZLWKWKHVXSSRUWRIWKH%HQGLJR$UW*DOOHU\DQG&RPPXQLW\DQG&XOWXUDO'HYHORSPHQW8QLW7KH*UDQWV3URJUDPLVDGPLQLVWHUHGE\WKH&RPPXQLW\DQG&XOWXUDO'HYHORSPHQW 8QLW

7KHIROORZLQJJXLGHOLQHVDUHDSSOLFDEOHWRWKH3URJUDP$UWLVWV ZKR UHVLGH RU ZKR SULPDULO\ ZRUN ZLWKLQ *UHDWHU %HQGLJR DUH HOLJLEOH WRDSSO\

$UWLVWV ZKR KDYH UHFHLYHG VXSSRUW WKURXJK WKH 3URJUDP IRU D SURMHFW WR EHSUHVHQWHGLQRUDUHLQHOLJLEOHIRUWKLVURXQG

6WDII IURP 7KH &DSLWDO %HQGLJR $UW *DOOHU\ DQG &RPPXQLW\ DQG &XOWXUDO'HYHORSPHQW8QLWDUHUHVSRQVLEOHIRUDVVHVVLQJDOODSSOLFDWLRQVUHFHLYHG

,Q DVVHVVLQJ DSSOLFDWLRQV FRQVLGHUDWLRQ LV WR EH JLYHQ WR WKH TXDOLW\ RI WKHSURSRVDOV DVZHOO DV SURPRWLQJ QHZDQG HPHUJLQJZRUN DFURVV D YDULHW\ RI DUWIRUPV

Page 92: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$ PD[LPXP RI VL[ FRPPXQLW\ DQGRU LQGLYLGXDO SURMHFWV FDQ EH VXSSRUWHG SHUDQQXP

6XSSRUWWKURXJKWKH3URJUDPHQWLWOHVWKHDSSOLFDQWWRIUHHXVHRIWKHYHQXHIRUXSWRWKLUWHHQGD\VZLWKDPD[LPXPRIWKUHHKRXUVRIWHFKQLFDOVXSSRUW

7\SLFDOO\ SURMHFWV WKDW DUH VXSSRUWHG WKURXJK WKLV 3URJUDP DUH WR EH SXEOLFO\DFFHVVLEOH IURP DP WR SP RQ D 6DWXUGD\ 6XQGD\ DQG DW OHDVW WKUHHZHHNGD\VZLWKQRDGPLVVLRQIHHWREHFKDUJHG

3UHYLRXV&RXQFLO'HFLVLRQV'DWHV

7KH3URJUDPZDVDGRSWHGE\&RXQFLOLQ

5HSRUW

7KH3URJUDPZDVSURPRWHGWKURXJKDYDULHW\RIPHGLXPVLQFOXGLQJDPHGLDUHOHDVHWKH$UWV(%XOOHWLQZKLFKLVGLVWULEXWHGYLDHPDLOWRVXEVFULEHGKRXVHKROGVDQG&LW\RI*UHDWHU%HQGLJRVZHEVLWH

6HYHQ DSSOLFDWLRQVZHUHUHFHLYHGIRU WKH3URJUDPZLWKSURSRVDOV LQFOXGLQJDQDUUD\RIDUWLVWV DQG DUWV SUDFWLFH &RQVLVWHQW ZLWK WKH 3URJUDP JXLGHOLQHV LQ PDNLQJ LWVUHFRPPHQGDWLRQVWKH$VVHVVPHQW3DQHOFRQVLGHUHGWKHTXDOLW\RIWKHSURSRVDOVDVZHOODVWKHGLYHUVLW\RIDUWIRUPV

7KH $VVHVVPHQW 3DQHO KDV UHFRPPHQGHG WKDW WKH IROORZLQJ VL[ DSSOLFDWLRQV EHVXSSRUWHG

³+HUH WKHUH DQGZLWKLQ´E\%HQGDUWV $ JURXS H[KLELWLRQ LQFOXGLQJ 'DQG 'ZRUNLQDGLYHUVHUDQJHRIPHGLDDQGVW\OHV

³7ZR 3RLQWV RI 9LHZ /RRNLQJ IURP 6DQGKXUVW´ E\ *HRII 6D\HU DQG 5D\3HDUFH $UWZRUNV LQ DVVRUWHG PHGLD ZKLFK H[DPLQH WKH LPSDFW RI OLIHORQJDVVRFLDWLRQVZLWKWKH%HQGLJR UHJLRQIRUERWKDUWLVWV

³*UHHN )DQWDVLD´ E\ &ODLUH 0F.HOODU +HOHQ /LGGHOO DQG 3DPHOD 9LQH $FHOHEUDWLRQRIWKUHH ZHHNVRISDLQWLQJLQWKH*UHHN,VOHV

³0\ &DQFHU -RXUQH\´ FRRUGLQDWHG E\ &KULVWLQH $UQRWW $Q RSSRUWXQLW\ IRUFDQFHUVXUYLYRUVWRH[SUHVV WKHLUH[SHULHQFHVRI OLYLQJZLWKFDQFHU LQDSHUVRQDOYLVXDOPDQQHU

³:RPHQZLWK:LQJV´E\*OHQ\V*DVWRQDQG-RDQ+DOSLQ$MRLQWH[KLELWLRQWRFRLQFLGHZLWK6HQLRUV:HHN

³FUHDWHWKLUWHHQ´E\&UHDWH$ELOLW\(YHQWV1HWZRUN'DQG'ZRUNVSURGXFHGLQZRUNVKRSVUXQE\WKH6DWXUGD\0RUQLQJ9LVXDO$UWV*URXS

$VWKH3URJUDPJXLGHOLQHVVWLSXODWHWKDWDPD[LPXPRIVL[SURMHFWVFDQEHVXSSRUWHGSHUDQQXP RQH RI WKH VHYHQ DSSOLFDWLRQV UHFHLYHG FRXOG QRW EH UHFRPPHQGHG IRU WKLVUHDVRQ 7KH $VVHVVPHQW 3DQHO FRQVLGHUHG WKDW WKH DSSOLFDWLRQ WLWOHG ³8S &ORVH DQG3HUVRQDO´ GLG QRW GHPRQVWUDWH WKH VDPH OHYHO RI DUWLVWLF UDWLRQDOH DV WKH RWKHU VL[DSSOLFDWLRQVKRZHYHUWKHDUWLVWLQTXHVWLRQZLOOEHLQYLWHGWRHQFRXUDJHGWRGHYHORSWKHLUSURMHFWIXUWKHUDQG OLDLVHZLWKVWDIIDW7KH&DSLWDOUHJDUGLQJWKHSRVVLELOLW\RIH[KLELWLQJKLVSURSRVHGZRUN LQ7KH&DSLWDO¶V IR\HU8QVXFFHVVIXODUWLVWVDUHHQFRXUDJHG WRFRQVLGHUUHDSSO\LQJLQIXWXUH\HDUV

Page 93: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3ULRULW\,PSRUWDQFH

7KH 3URJUDP LV DQ LPSRUWDQW RQH LQ WKDW LW SURYLGHV RSSRUWXQLWLHV IRU ORFDO QHZ DQGHPHUJLQJ DUWLVWV WR VKRZFDVH WKHLU ZRUNZLWKLQ WKH FRYHWHG9LHZ6WUHHW $UWV 3UHFLQFW7KHUHDUHRWKHUZLVHYHU\OLPLWHGRSSRUWXQLWLHVIRUVXFKDUWLVWVWRH[KLELWWKHLUZRUNZLWKLQWKH %HQGLJR &HQWUDO $FWLYLW\ 'LVWULFW 7KH 3URJUDP KDV GHYHORSHG D VWURQJ IROORZLQJZLWKLQWKHORFDODUWVFRPPXQLW\VLQFHLWZDVILUVWHVWDEOLVKHGLQ

7LPHOLQHV

6KRXOG&RXQFLOHQGRUVHWKHUHFRPPHQGDWLRQVFRQWDLQHGZLWKLQWKLVUHSRUWWKHILUVWH[KLELWLRQRIWKH3URJUDPVHULHVZLOOFRPPHQFHRQ)HEUXDU\DQGWKHODVWZLOOFORVHRQ2FWREHU

5LVN$QDO\VLV

7KH3URJUDPIRUPV DQLQWHJUDOFRPSRQHQWRI&RXQFLO¶VVXSSRUWIRUQHZDQGHPHUJLQJDUWLVWVZLWKLQ*UHDWHU%HQGLJR7KHUHDUHRWKHUZLVHYHU\OLPLWHGRSSRUWXQLWLHVIRUVXFKDUWLVWVWRH[KLELWWKHLUZRUNZLWKLQWKH%HQGLJR&HQWUDO$FWLYLW\'LVWULFW

&RQVXOWDWLRQ&RPPXQLFDWLRQ

,QWHUQDO&RQVXOWDWLRQ

&RQVLVWHQWZLWKWKH3URJUDPJXLGHOLQHVDSSOLFDWLRQVZHUHDVVHVVHGE\DJURXSRIVWDIIZKR KDYH FRQVLGHUDEOH NQRZOHGJH DQG H[SHULHQFH LQ WKH DUWV VHFWRU 7KH VWDII JURXSFRQVLVWHG RI 'DYLG /OR\G DQG 6WHSKHQ +HQGHUVRQ 7KH &DSLWDO /HDQQH )LW]JLEERQ%HQGLJR$UW*DOOHU\DQG5RKDQ3KLOOLSV&RPPXQLW\DQG&XOWXUDO'HYHORSPHQW8QLW

([WHUQDO&RQVXOWDWLRQ

7KH3URJUDPZDVSURPRWHGWKURXJKDYDULHW\RIPHGLXPVLQFOXGLQJDPHGLDUHOHDVHWKH$UWV(%XOOHWLQZKLFKLVGLVWULEXWHGYLDHPDLOWRVXEVFULEHGKRXVHKROGVDQG&LW\RI*UHDWHU%HQGLJRVZHEVLWH

5HVRXUFH,PSOLFDWLRQV

7KH YDOXH RI WKLV JUDQW LQ WHUPV RI UHYHQXH IRUJRQH LV HVWLPDWHG WR EH $GGLWLRQDOO\7KH&DSLWDOSURYLGHWHFKQLFDOVXSSRUWIRUVHWXSV

%XGJHW$OORFDWLRQLQWKH&XUUHQW)LQDQFLDO<HDU<HV3UHYLRXV&RXQFLO6XSSRUW<HV([WHUQDO)XQGLQJ6RXUFHV1LO&XUUHQW (VWLPDWHRU7HQGHU3ULFH1RWDSSOLFDEOH$Q\NQRZQRUDQWLFLSDWHGYDULDQFHWREXGJHW1LO3URMHFWHGFRVWVIRUIXWXUHILQDQFLDO\HDUV$SSUR[LPDWHO\

Page 94: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&RQFOXVLRQ

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

$WWDFKPHQWV

'XGOH\+RXVH&RPPXQLW\+LUH6XEVLG\3URJUDP$SSOLFDWLRQ)RUP

5(&200(1'$7,21

7KDW &RXQFLO HQGRUVH WKDW WKH IROORZLQJ VL[ SURMHFWV EH VXSSRUWHG WKURXJK WKH 'XGOH\+RXVH&RPPXQLW\+LUH6XEVLG\3URJUDP

³+HUHWKHUHDQGZLWKLQ´E\%HQGDUWV³7ZR3RLQWVRI9LHZ/RRNLQJIURP6DQGKXUVW´E\*HRII6D\HUDQG5D\3HDUFH³*UHHN)DQWDVLD´E\&ODLUH0F.HOODU+HOHQ/LGGHOODQG3DPHOD9LQH³0\&DQFHU-RXUQH\´FRRUGLQDWHGE\&KULVWLQH$UQRWW³:RPHQZLWK:LQJV´E\*OHQ\V*DVWRQDQG-RDQ+DOSLQFUHDWWKLUWHHQE\&UHDWH$ELOLW\(YHQWV1HWZRUN

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U/\RQV

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 95: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&20081,7<(1*$*(0(17)5$0(:25.

'RFXPHQW,QIRUPDWLRQ

$XWKRU 1LFN %\UQH 0DQDJHU 6WUDWHJ\ &KULV :DLWHV &RPPXQLFDWLRQV2IILFHU

5HVSRQVLEOH 3UXH0DQVILHOG'LUHFWRU3ODQQLQJDQG'HYHORSPHQW'LUHFWRU DQG3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV

6XPPDU\3XUSRVH

7RRXWOLQH WKHREMHFWLYHVDQGDSSURDFKRI WKHDGRSWHG&RPPXQLW\(QJDJHPHQW3ROLF\DQGXSGDWH&RXQFLORQFXUUHQWDFWLYLWLHVWRLQIRUPRXU&RPPXQLW\

6SHFLILFDOO\WKHUHSRUWGHWDLOV

WKHEDFNJURXQGDQGLQWHQWRIWKHDGRSWHG*UHDWHU%HQGLJR&RPPXQLW\(QJDJHPHQW3ROLF\

UHFHQWO\XSGDWHGFKDQJHVWRWKH&LW\RI*UHDWHU%HQGLJR¶VZHEVLWH± µ+DYH<RXU6D\¶DQG

DQDO\VLVDQGFRVWVDVVRFLDWHGZLWKFRPPXQLW\HQJDJHPHQWDGYHUWLVLQJ

3ROLF\&RQWH[W

7KH*UHDWHU%HQGLJR&RPPXQLW\3ODQ

7KHVWDWHGDVSLUDWLRQ WRJRYHUQDQFH LV WKDW ³*UHDWHU%HQGLJRZLOOEHDW WKH IRUHIURQWRILQFOXVLYH DQG FUHDWLYH OHDGHUVKLS LQ $XVWUDOLD´ ZLWK WKH NH\ DFKLHYHPHQW WKDW *UHDWHU%HQGLJRZLOO ³KDYHZHOO LQIRUPHG DQGHPSRZHUHG FLWL]HQVZKRFRQWULEXWH WR WKH IXWXUHGHYHORSPHQWRIWKHUHJLRQ´

&RXQFLO3ODQ5HIHUHQFH

8QGHUWKHVWUDWHJLFREMHFWLYHRI³&RPPXQLW\DQG&XOWXUH´WKH&RXQFLO3ODQLQFOXGHVWKHVWUDWHJ\WR³HIIHFWLYHO\HQJDJHDQGFRPPXQLFDWHZLWKGLYHUVHFRPPXQLW\PHPEHUVDQGYDOXHWKHLUZLVGRP´

%DFNJURXQG,QIRUPDWLRQ

$GRSWHG3ROLF\

,Q1RYHPEHUWKH&RXQFLODGRSWHGWKH&RPPXQLW\(QJDJHPHQW3ROLF\ZKLFKGHWDLOV*UHDWHU%HQGLJR¶VFRPPLWPHQWWRHIIHFWLYHDQGUHOHYDQWFRPPXQLW\HQJDJHPHQW

7KH DGRSWLRQ RI WKH SROLF\ ZDV LPSOHPHQWHG WKURXJK D VHULHV RI LQWHUQDO WUDLQLQJZRUNVKRSVKHOG LQ-XQHRIRQJRLQJGHYHORSPHQWRI VWDIIDQGDSSO\LQJ WKHSROLF\ZKHQHQJDJHPHQWLVUHTXLUHG

Page 96: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

7KH SROLF\ RXWOLQHV KRZ *UHDWHU %HQGLJR GHILQHV FRPPXQLW\ HQJDJHPHQW)XQGDPHQWDOO\ LW ZDV DJUHHG WKDW HQJDJHPHQW LQYROYHV D UDQJH RI LQWHUDFWLRQV ZLWKFRPPXQLW\PHPEHUVDOORZLQJFLWL]HQVWR

EHLQIRUPHGRI&RXQFLODFWLYLWLHVEHLQYROYHGZLWK&RXQFLOLQLPSURYLQJWKHFRPPXQLW\DQGKDYHFLWL]HQVSURYLGLQJLQSXWRQORFDOLVVXHV

7KHVHLQWHUDFWLRQVUDQJHIURPHYHU\GD\LQIRUPDOGLVFXVVLRQVFRQWDFWZLWKVWDNHKROGHUVGXULQJ VHUYLFH GHOLYHU\ JURXS GLVFXVVLRQV RU PHHWLQJV IRUPDO FRQVXOWDWLRQ SURFHVVHVWKURXJK WR &RXQFLO VXSSRUWLQJ FRPPXQLW\ PHPEHUV LQ WDNLQJ DFWLRQ RQ LVVXHVWKHPVHOYHV

(QJDJHPHQW LV QRW MXVW DERXW GLVFXVVLRQ DQG UHODWLRQVKLSV LW OHDGV WR UHDO RXWFRPHVVXFKDVEHWWHUVHUYLFHVIDFLOLWLHVSROLF\DQGLQIUDVWUXFWXUH(QJDJHPHQWFDQKHOSWKHVHRXWFRPHVWREHDFKLHYHGZLWKFRPPXQLW\PHPEHUV

EHLQJPRUHLQIRUPHGRI&RXQFLOGLUHFWLRQDQGDFWLYLWLHVDEOHWRKDYHLQSXWLQWRVRPHGHFLVLRQVEHWWHUXQGHUVWDQGLQJ&RXQFLOGHFLVLRQVDQGSULRULWLHVDQGZRUNLQJPRUHFROODERUDWLYHO\ZLWK&RXQFLO

&RPPXQLWLHV DUH FRPSOH[ KDYH PDQ\ GLIIHULQJ LVVXHV DQG LQYROYH D ZLGH UDQJH RIYDU\LQJ YLHZV YDOXHV NQRZOHGJH DQG LQWHUHVW &RPPXQLW\ (QJDJHPHQW QHHGV WRLQFRUSRUDWH DQG UHVSRQG WR WKH GLYHUVLW\ DQG G\QDPLFV RI WKH FRPPXQLW\ IDFLOLWDWHFRQVWUXFWLYHGHOLEHUDWLRQRILVVXHVDQGPDQDJHSRWHQWLDOO\FRQIOLFWLQJLQWHUHVWV

(QJDJHPHQWGRHVQRWPHDQWKDWHYHU\GHWDLORI&RXQFLORSHUDWLRQLV RSHQWRFRPPXQLW\FRPPHQWRUFRQWURO1RUGRHV LWPHDQWKDWVWDIIZLOOEHGLVWUDFWHGIURPWKHLUGHOLYHU\RIVHUYLFHV7KHUHDUHPDQ\VLWXDWLRQVZKHUHHQJDJHPHQWLVQRWQHFHVVDU\7KHVWUDWHJLFDSSURDFKWRFRPPXQLW\HQJDJHPHQW FOHDUO\LGHQWLILHV WKHVHVLWXDWLRQV

&RPPXQLW\ HQJDJHPHQW LV LPSRUWDQW DV FLWL]HQV H[SHFW JUHDWHU WUDQVSDUHQF\DFFRXQWDELOLW\ DQG HQJDJHPHQW 7KLV LV JRRG EXVLQHVV SUDFWLFH LPSURYLQJ VWUDWHJLFSODQQLQJ DQG VHUYLFH GHOLYHU\ 7KHUH LV LQFUHDVLQJ H[SHFWDWLRQ RI FLWL]HQV WR EHPRUHGLUHFWO\LQYROYHGLQSURYLGLQJLQSXWWR&RXQFLOSULRULWLHV

PRUHLQIRUPHGRI&RXQFLODFWLYLWLHVDQGSDUWQHULQJZLWK&RXQFLOWRDGGUHVVLVVXHVDQGDWWLPHVMXGJLQJ&RXQFLOVSHUIRUPDQFH

&LWL]HQVZKRDUH LQIRUPHGRI&RXQFLO RSHUDWLRQVDQGDEOH WRKDYH LQSXW LQDEDODQFHGDQG DSSURSULDWH ZD\ FDQ JHQHUDWH FRPPXQLW\ VXSSRUW DQG FROODERUDWLRQ 7KLV DOVRHQVXUHV WKDW VHUYLFHV PHHW WKH FRPPXQLW\ QHHGV DQG H[SHFWDWLRQV ,QIRUPHG DQGLQYROYHGFLWL]HQVPD\OHDGWRUHGXFHGFRPSODLQWVDQGREMHFWLRQV

,W LV LPSRUWDQW WRXQGHUVWDQGZKDW VXFFHVVIXO&RPPXQLW\(QJDJHPHQW LVDQGZK\ LW LVLPSRUWDQW,WLVDOVRLPSRUWDQWWRZRUNRXWZKDW&RPPXQLW\(QJDJHPHQWLVQRW,WLVQRW

DERXW JDLQLQJ FRPPXQLW\ LQSXW ZKHQD GHFLVLRQ KDV DOUHDG\EHPDGH DQG FLWL]HQVFDQKDYHOLWWOHRUQRLQIOXHQFHQRW D FRHUFLYH SURFHVV WKDW REOLJHV SHRSOH WR DJUHH EXW FUHDWHV RSSRUWXQLWLHV IRUGLIIHUHQWSDUWLHVWRH[SORUHFRPPRQJURXQGDQGKRSHIXOO\UHDFKDJUHHPHQWQRW D VLQJOH HYHQW RU DFWLYLW\ EXW D G\QDPLF UHODWLRQVKLS WKDW HYHQWV DQG DFWLYLWLHVFRQWULEXWHWR

Page 97: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

FRPSOHWHXQWLO FLWL]HQV UHFHLYH IHHGEDFNVLPSO\JDWKHULQJ LQSXW IURPSHRSOH LVRQO\SDUWRIHQJDJHPHQW

7KHIXOO3ROLF\LVDWWDFKHG

5HSRUW

7KH&LW\RI*UHDWHU%HQGLJRLVFRPPLWWHGWRHIIHFWLYHHQJDJHPHQWZLWKWKH&RPPXQLW\,Q UHVSRQVH WR WKH UHTXHVW E\ &RXQFLO D UHYLVHG µ+DYH \RXU VD\¶ ZHESDJH KDV EHHQHVWDEOLVKHG WKDW SURYLGHV D OLYH DQG RQJRLQJ FDOHQGDU RI HYHQWV IRU HQJDJHPHQWDFWLYLWLHV

)LJXUH/LQNWR³+DYH\RXUVD\´:HESDJH

$VRXWOLQHGDERYHWKHPHWKRGRIHQJDJHPHQWE\WKH&LW\RI*UHDWHU%HQGLJRLVGLYHUVHDQGUHVSRQGVWRWKHUHOHYDQWSURMHFWSROLF\RUFRPPXQLW\VHWWLQJ7KH µ+DYH\RXUVD\¶SDJH FDSWXUHV WKLVGLYHUVLW\DQGZLOOFRQWLQXH WRXSGDWH FRPPXQLW\DERXW HQJDJHPHQWDFWLYLWLHV6HH)LJXUHLQFOXGLQJEXWQRWOLPLWHGWR

&DOOVIRUVXUYH\UHVSRQVHV 3URMHFWOLVWHQLQJSRVWV 3URMHFWDQG6WUDWHJ\GHYHORSPHQW:RUNVKRSV 6PDOO7RZQV0HHWLQJV &RXQFLOORUV:DUG0HHWLQJV 2WKHU6WDWXWRU\QRWLILFDWLRQV

Page 98: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

)LJXUH³+DYH\RXUVD\´ZHESDJH

7KH &RPPXQLW\ (QJDJHPHQW 3ROLF\ %DFNJURXQG ,QIRUPDWLRQ RXWOLQHV WKH UDQJH RIHQJDJHPHQW WRROV WKDW WKH &LW\ RI *UHDWHU %HQGLJR PD\ XQGHUWDNH WR HLWKHU LQIRUPFRQVXOW LQYROYH FROODERUDWH RU HPSRZHU RXU &RPPXQLW\ LQ DFFRUGDQFH ZLWK ,$3SULQFLSOHVDQGWKH*UHDWHU%HQGLJR&RPPXQLW\(QJDJHPHQW3ROLF\

$GYHUWLVLQJ

3XEOLFQRWLFHVDQGDGYHUWLVLQJ(DFK ZHHN WKH &LW\ RI *UHDWHU %HQGLJR SODFHV D UDQJH RI DGYHUWLVLQJ WKURXJK SXEOLFQRWLFHVDQGGLVSOD\DGYHUWLVHPHQWV7KHVHDGYHUWLVHPHQWVFRYHUVWDWXWRU\DQGSODQQLQJDGYHUWVDQG WHQGHUVDVZHOODVGLVSOD\DGYHUWLVHPHQWV WKDWSURPRWHHYHQWVSODQVDQGVWUDWHJLHVDQGSURJUDPVHDFKUDQJLQJLQVL]HDQGFRVW

)DFHERRNDQG7ZLWWHU7KHZHEDQG VRFLDOPHGLDHQJDJHPHQWDYHQXHV DOO FRPPXQLW\HQJDJHPHQW DFWLYLWLHVDUHSODFHG RQOLQH

&RPPXQLW\1HZVOHWWHUV&RPPXQLW\ QHZVOHWWHUV DUH D YDOXDEOH DQGGLUHFW WRRO WR HQJDJH WKH FRPPXQLW\ 7KHQHZVOHWWHUVGRKDYHUHVWULFWLRQVDVWKH\DUHXVXDOO\SURGXFHGPRQWKO\

$[HGDOH$QWLFV%HQGLJR,379%ULGJH&RQQHFWLRQ&DPSEHOOV)RUHVW(3$1HZV(OPRUH)ODW0DWWHUV1HZVOHWWHU*RRUQRQJ*XLGH

Page 99: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

+HDWKFRWH2QOLQH5D\ZRRG5RXQGDERXW:RRGYDOH&RPPXQLW\0DURQJ &RPPXQLW\1HZVOHWWHU0DURQJFRPPXQLW\1HZVOHWWHU+XQWO\1HZV

&LW\RI*UHDWHU%HQGLJR$GYHUWLVHU3DJH7KH &LW\ FXUUHQWO\ UXQV D IXOO SDJH DGYHUWLVHPHQW LQ WKH %HQGLJR $GYHUWLVHU HDFKIRUWQLJKW

7KHDLPRI WKLVSDJH LV WRSURPRWH&LW\VHUYLFHVSURJUDPVDQGDFWLYLWLHV WKDWPD\QRWKDYHUHFHLYHGDUXQLQWKHQHZVSDSHUSURYLGHDGGLWLRQDOVXSSRUWWRDSURMHFWDFWLYLW\RUHYHQWDQGDGYLVHRIFRPPXQLW\HQJDJHPHQWRSSRUWXQLWLHV

7KLVSDJHFRXOGDOVRKRXVHDUHJXODUVHFWLRQIRUFRPPXQLW\HQJDJHPHQWDFWLYLWLHVZLWKWKHVHWXSRIDVHFWLRQLQWKHSDJHXSIRUWKLVSXUSRVH

)XUWKHUGHYHORSPHQW

7KH &RPPXQLFDWLRQV DQG 0HGLD WHDP KDYH DOVR H[DPLQHG VRPH RSWLRQV IRU DOOFRPPXQLW\ HQJDJHPHQW DGYHUWLVHPHQWV WR EH DGYHUWLVHG FROOHFWLYHO\ $ FRQFHSW LVRXWOLQHGEHORZ

Page 100: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

Page 101: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

0HDVXUHRI6XFFHVV7KHUHLVQRFRQVLVWHQWSURFHVVIRUHYDOXDWLQJWKHPHDVXUHRIVXFFHVV$SURFHVVZLOOEHGHYHORSHG VR WKDWZHFDQXQGHUVWDQGKRZSHRSOHKHDUDERXW FRPPXQLW\HQJDJHPHQWRSSRUWXQLWLHV

&RPPXQLW\6DWLVIDFWLRQ6XUYH\7KHUHFHQWODWHVW&RPPXQLW\6DWLVIDFWLRQ6XUYH\DVNHG

,I &RXQFLO ZDV JRLQJ WR JHW LQ WRXFK ZLWK \RX WR LQIRUP \RX DERXW FRXQFLO QHZV DQGLQIRUPDWLRQDQGXSFRPLQJHYHQWVZKLFKRQHLVWKH%(67ZD\WRFRPPXQLFDWHZLWK\RX"

5HVSRQGHQWV LQGLFDWHG WKDW WKHLU SUHIHUUHGPHWKRG RI FRPPXQLFDWLRQZHUH LQ RUGHURISUHIHUHQFH

$&RXQFLOQHZVOHWWHUVHQWYLDPDLO$GYHUWLVLQJLQDORFDOQHZVSDSHU$FRXQFLOQHZVOHWWHUDVDQLQVHUWLQDORFDOQHZVSDSHU$&RXQFLOQHZVOHWWHUVHQWYLDHPDLO7KH&LW\ ZHEVLWH

Page 102: Council Meeting Minutes 5 December 2012

&RPPXQLW\DQG&XOWXUH 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5HVRXUFH,PSOLFDWLRQV

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

$WWDFKPHQWV

&RPPXQLW\(QJDJHPHQW3ROLF\%DFNJURXQGLQIRUPDWLRQIRUWKH&RPPXQLW\(QJDJHPHQW)UDPHZRUN

5(&200(1'$7,21

7KDWWKH*UHDWHU%HQGLJR&LW\&RXQFLOUHVROYHWR

&RQWLQXH WR LPSOHPHQW WKH DGRSWHG *UHDWHU %HQGLJR &RPPXQLW\ (QJDJHPHQW3ROLF\

8QGHUWDNH IXUWKHU SURPRWLRQ RI HQJDJHPHQW RSSRUWXQLWLHV WKURXJK WKH QHZFRPPXQLW\HQJDJHPHQWSDJHVHWXSRQWKHZHEVLWH

%DVH WKH VL]H IUHTXHQF\ DQG ORFDWLRQ RI FRQVROLGDWHG DGYHUWLVLQJ RQ FRPPXQLW\HQJDJHPHQWSODQVDQGUHOHYDQWDFWLYLW\EXGJHWV

'HYHORS DQ HYLGHQFH EDVHG PHWKRG WR HYDOXDWH WKH HIIHFWLYHQHVV RI FRPPXQLW\HQJDJHPHQW

5(62/87,21

0RYHG&U&R[6HFRQGHG&U:LOOLDPV

7KDWWKH*UHDWHU%HQGLJR&LW\&RXQFLOUHVROYHWR

&RQWLQXH WR LPSOHPHQW WKH DGRSWHG *UHDWHU %HQGLJR &RPPXQLW\ (QJDJHPHQW3ROLF\

8QGHUWDNH IXUWKHU SURPRWLRQ RI HQJDJHPHQW RSSRUWXQLWLHV WKURXJK WKH QHZFRPPXQLW\ HQJDJHPHQW SDJH VHW XS RQ WKH ZHEVLWH DQG DGGLQJ FRPPXQLW\HQJDJHPHQWSODQVIRUVWUDWHJLHVWKDW&RXQFLOLVFXUUHQWO\GHYHORSLQJ

%DVH WKH VL]H IUHTXHQF\ DQG ORFDWLRQ RI FRQVROLGDWHG DGYHUWLVLQJ RQ FRPPXQLW\HQJDJHPHQWSODQVDQGUHOHYDQWDFWLYLW\EXGJHWV

'HYHORS DQ HYLGHQFH EDVHG PHWKRG WR HYDOXDWH WKH HIIHFWLYHQHVV RI FRPPXQLW\HQJDJHPHQWE\0DUFK

&$55,('

Page 103: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

2853(23/(285352&(66(6

$&&281763$<$%/($1'&2175$&76$:$5'('81'(5'(/(*$7,21

'RFXPHQW,QIRUPDWLRQ

$XWKRU %UDGOH\7KRPDV6HQLRU$FFRXQWDQW

5HVSRQVLEOH 0DUJ$OODQ 'LUHFWRU2UJDQLVDWLRQ6XSSRUW'LUHFWRU

6XPPDU\3XUSRVH

7KHSXUSRVHRI WKLV UHSRUW LV WRSURYLGH LQIRUPDWLRQRQDFFRXQWVSD\DEOH LVVXHGXQGHUGHOHJDWLRQDQGFRQWUDFWVDZDUGHGXQGHUGHOHJDWLRQ

3ROLF\&RQWH[W

3URYLGHKLJKTXDOLW\SURIHVVLRQDOVHUYLFHVE\XQGHUWDNLQJUHVSRQVLEOHEXVLQHVVSODQQLQJWRHQVXUHORQJWHUPVXVWDLQDELOLW\

5HSRUW

&KHTXH 1RV WR

(OHFWURQLF)XQGV7UDQVIHU WR

7KHSUHSD\PHQWVDV OLVWHGDERYH WRWDOOLQJDQG(OHFWURQLF)XQGV7UDQVIHUDUHVXEPLWWHGIRUWKHLQIRUPDWLRQRI&RXQFLO

&RQWUDFWV$ZDUGHGXQGHU'HOHJDWLRQ

1RFRQWUDFWVDZDUGHGXQGHUGHOHJDWLRQ

$WWDFKPHQWV

$ OLVWLQJ RI WKH FKHTXHV DQG HOHFWURQLF IXQGV WUDQVIHU DUH LQFOXGHG LQ WKHDWWDFKPHQWVWRWKH%XVLQHVV3DSHU

Page 104: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(&200(1'$7,21

7KDW WKH 'HOHJDWHG $XWKRULW\ IRU $FFRXQWV 3D\DEOH DV RXWOLQHG LQ WKLV UHSRUW EHHQGRUVHGE\&RXQFLO

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U&DPSEHOO

7KDWWKHUHFRPPHQGDWLRQVEHDGRSWHGIRU WKH2XU3HRSOH2XU3URFHVVHV5HSRUWV1R $FFRXQWV 3D\DEOH DQG&RQWUDFWV $ZDUGHG8QGHU'HOHJDWLRQ DQG 5HFRUG RI$VVHPEOLHV

&$55,('

Page 105: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(&25'2)$66(0%/,(6

'RFXPHQW,QIRUPDWLRQ

$XWKRU 3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV

5HVSRQVLEOH &UDLJ1LHPDQQ &KLHI([HFXWLYH2IILFHU2IILFHU

6XPPDU\3XUSRVH

7KHSXUSRVHRIWKLVUHSRUWLVWRSURYLGHWKHUHFRUGRIDQ\DVVHPEO\RI&RXQFLOORUVZKLFKKDVEHHQKHOGVLQFHWKHODVW&RXQFLO0HHWLQJVRWKDWLWFDQEHUHFRUGHGLQWKH0LQXWHVRIWKHIRUPDO&RXQFLO0HHWLQJ

3ROLF\&RQWH[W

$QDPHQGPHQWWRWKH/RFDO*RYHUQPHQW$FWZKLFKFDPHLQWRHIIHFWRQ6HSWHPEHUUHTXLUHVWKHUHFRUGRIDQ\DVVHPEO\RI&RXQFLOORUVWREHUHSRUWHGWRWKHQH[WSUDFWLFDEOH&RXQFLO0HHWLQJDQGUHFRUGHGLQWKH0LQXWHV

%DFNJURXQG,QIRUPDWLRQ

7KH /RFDO *RYHUQPHQW $FW SURYLGHV D GHILQLWLRQ RI DQ DVVHPEO\ RI &RXQFLOORUV ZKHUHFRQIOLFWVRILQWHUHVWPXVWEHGLVFORVHG

$PHHWLQJZLOOEHDQDVVHPEO\RI&RXQFLOORUVLI LWFRQVLGHUVPDWWHUVWKDWDUHOLNHO\WREHWKH VXEMHFW RI D &RXQFLO GHFLVLRQ RU WKH H[HUFLVH RI D &RXQFLO GHOHJDWLRQ DQG WKHPHHWLQJLV

$SODQQHGRUVFKHGXOHGPHHWLQJWKDWLQFOXGHVDWOHDVWKDOIWKH&RXQFLOORUVDQGDPHPEHURI&RXQFLOVWDIIRU

DQDGYLVRU\FRPPLWWHHRIWKH&RXQFLOZKHUHRQHRUPRUH&RXQFLOORUVDUHSUHVHQW

7KH UHTXLUHPHQW IRU UHSRUWLQJSURYLGHV LQFUHDVHG WUDQVSDUHQF\DQG WKH RSSRUWXQLW\ IRU&RXQFLOORUVWRFKHFNWKHUHFRUGSDUWLFXODUO\WKHGHFODUDWLRQVRIFRQIOLFWRILQWHUHVW

5HSRUW

2XWOLQHGEHORZDUHWKHGHWDLOVRIDVVHPEOLHVRI&RXQFLOORUVKHOGVLQFHWKHODVWPHHWLQJ

Page 106: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

0HHWLQJ,QIRUPDWLRQ0HHWLQJ1DPH7\SH

%HQGLJR(DVWHU)HVWLYDO$GYLVRU\%RDUG0HHWLQJ

0HHWLQJ'DWH 2FWREHU0DWWHUVGLVFXVVHG %HQGLJR(DVWHU)HVWLYDO$GYLVRU\%RDUG,QVWUXPHQW

RI$SSRLQWPHQWDQG7HUPVRI5HIHUHQFH7KUHH\HDU)HVWLYDO6WUDWHJLF3ODQ0HUFKDQGLVH9HQGRUIHHV<RXWK%XVLQHVV3ODQ)HVWLYDO6WUDWHJLF3ODQQLQJ

$WWHQGHHV$SRORJLHV&RXQFLOORUV &U5RG)\IIH6WDII&RPPXQLW\5HSUHVHQWDWLYHV

7HUU\.DUDPDORXGLV/\Q%URZQ5DSK%HK)LRQD&KLEEHU5RU\6RPHUYLOOH3DXO5RKDQ*DU\)UDQN*DLO+DUG\3KLO5HGPRQG$SRORJLHV'DYLG:ULJKW.HQ'HYHUDX[

&RQIOLFWRI,QWHUHVWGLVFORVXUHV0DWWHU1R

&RXQFLOORUUHSUHVHQWDWLYH PDNLQJGLVFORVXUH

&RXQFLOORUUHSUHVHQWDWLYHOHIWPHHWLQJ

1LO

Page 107: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

0HHWLQJ,QIRUPDWLRQ0HHWLQJ1DPH7\SH

&RXQFLOORUV)RUXP

0HHWLQJ'DWH 1RYHPEHU0DWWHUVGLVFXVVHG 3UHVHQWDWLRQRQNH\GDWDRQ*UHDWHU%HQGLJR&HQVXV

&RQVLGHULQJ7RZQ3ODQQLQJ$SSOLFDWLRQV$JHQGD5HYLHZ&DOFLQHVDQGV(OPRUH5D\ZRRG5RDG'HZDWHULQJRIWKH&HQWUDO'HERUDK0LQH'HILQLWLRQRI*HQHUDO%XVLQHVV$JUHHPHQWZLWK%HQGLJR6HQLRU6HFRQGDU\&ROOHJHIRUWKH

XVHRIWKHSURSRVHG&RPPXQLW\7KHDWUH6XSHUDQQXDWLRQOLDELOLW\(DJOHKDZN/LEUDU\6HDJXOOVDW/DNH1HDQJDU%HQGLJR0DQXIDFWXUHUV*URXS(DVWHU)HVWLYDO&RPPLWWHH7RZQ+DOOFDWHUHU%HQGLJR6:$30HHW9LOODZRRGGHYHORSHUV:RPHQ6KRZLQJWKH:D\,QGHSHQGHQW5HYLHZ%DQNVLD*URXS&RXQFLODQGFRPPXQLW\FRPPLWWHHV

$WWHQGHHV$SRORJLHV&RXQFLOORUV &U/LVD5XIIHOO

&U5RG&DPSEHOO&U(OLVH&KDSPDQ&U3HWHU&R[&U5RG)\IIH&U+HOHQ/HDFK&U%DUU\/\RQV&U0DUN:HUDJRGD&U-DPHV:LOOLDPV

6WDII&RPPXQLW\5HSUHVHQWDWLYHV

&UDLJ1LHPDQQ'DUUHQ)X]]DUG3DXOLQH*RUGRQ6WDQ/LDFRV0DUJ$OODQ3UXH0DQVILHOG3HWHU'DYLHV$OLVRQ&DPSEHOO

&RQIOLFWRI,QWHUHVWGLVFORVXUHV0DWWHU1R

&RXQFLOORUPDNLQJGLVFORVXUH &RXQFLOORUOHIWPHHWLQJ

&U5XIIHOOSODQQLQJPDWWHU /LWWOH%UHHQ6WUHHWDQG GLVFXVVLRQ RQ +DUJUHDYHV 0DOO3OD\VSDFH

<HV

Page 108: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

0HHWLQJ,QIRUPDWLRQ0HHWLQJ1DPH7\SH

3ODQQLQJ$KHDG7UDQVLWLRQ)RUXP

0HHWLQJ'DWH 1RYHPEHU0DWWHUVGLVFXVVHG 6HWWLQJXSWKH&LW\IRUWKHIXWXUH

7KH%HQGLJR6WRU\WRGDWH WKHORQJWHUP&RXQFLOORUVSULRULWLHVIRUWKHQH[WIRXU\HDUV&RXQFLO3ODQQLQJ+LHUDUFK\<RXU&RXQFLO3ODQ\HDUILQDQFLDOSODQDQGORQJWHUPEXGJHW5HIOHFWLRQVIURPWKHODVW&RXQFLO

$WWHQGHHV$SRORJLHV&RXQFLOORUV &U/LVD5XIIHOO

&U5RG&DPSEHOO&U(OLVH&KDSPDQ&U3HWHU&R[&U5RG)\IIH&U+HOHQ/HDFK&U%DUU\/\RQV&U0DUN:HUDJRGD&U-DPHV:LOOLDPV

6WDII&RPPXQLW\5HSUHVHQWDWLYHV

&UDLJ1LHPDQQ3UXH0DQVILHOG3DXOLQH*RUGRQ'DUUHQ)X]]DUG6WDQ/LDFRV1LFN%\UQH/\Q7DOERW3HWHU'DYLHV$OLVRQ&DPSEHOO

&RQIOLFW RI,QWHUHVWGLVFORVXUHV0DWWHU1R

&RXQFLOORUPDNLQJGLVFORVXUH &RXQFLOORUOHIWPHHWLQJ

1LO

Page 109: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

0HHWLQJ,QIRUPDWLRQ0HHWLQJ1DPH7\SH

:RUNLQJ7RJHWKHU:RUNVKRS

0HHWLQJ'DWH 1RYHPEHU0DWWHUVGLVFXVVHG :RUNLQJUHODWLRQVKLSV

$WWHQGHHV$SRORJLHV&RXQFLOORUV &U/LVD5XIIHOO

&U5RG&DPSEHOO&U(OLVH&KDSPDQ&U3HWHU&R[&U5RG)\IIH&U+HOHQ/HDFK&U%DUU\/\RQV&U0DUN:HUDJRGD&U-DPHV:LOOLDPV

6WDII&RPPXQLW\5HSUHVHQWDWLYHV

&UDLJ1LHPDQQ3UXH0DQVILHOG3DXOLQH*RUGRQ'DUUHQ)X]]DUG6WDQ/LDFRV3HWHU'DYLHV$OLVRQ&DPSEHOO)DFLOLWDWRUV0DOFROP/D]HQE\DQG*D\OH+DUGLH

&RQIOLFWRI,QWHUHVWGLVFORVXUHV0DWWHU1R

&RXQFLOORUPDNLQJGLVFORVXUH &RXQFLOORUOHIWPHHWLQJ

1LO

5(&200(1'$7,21

7KDW&RXQFLOHQGRUVHWKHUHFRUGRIDVVHPEOLHVRI&RXQFLOORUVDVRXWOLQHGLQWKLVUHSRUW

UHIHUWRSDJH UHFRPPHQGDWLRQDGRSWHG

Page 110: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&281&,//256833257$1'5(,0%856(0(172)(;3(16(632/,&<

'RFXPHQW,QIRUPDWLRQ

$XWKRU 3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV

5HVSRQVLEOH &UDLJ1LHPDQQ &KLHI([HFXWLYH2IILFHU2IILFHU

6XPPDU\3XUSRVH

7KH SXUSRVH RI WKLV UHSRUW LV IRU &RXQFLO WR DGRSW WKH &RXQFLOORU 6XSSRUW DQG5HLPEXUVHPHQWRI([SHQVHV3ROLF\

3ROLF\&RQWH[W

'HPRQVWUDWHJRRGJRYHUQDQFH

%DFNJURXQG,QIRUPDWLRQ

)ROORZLQJWKHLQGXFWLRQRIWKH&RXQFLOIRUWKHLWLVWLPHO\WRUHYLHZWKHFXUUHQW&RXQFLOORU 6XSSRUW DQG 5HLPEXUVHPHQW RI ([SHQVHV 3ROLF\ WKDW ZDV DGRSWHG E\ WKHSUHYLRXV&RXQFLOLQ

3UHYLRXV&RXQFLO'HFLVLRQV'DWHV -DQXDU\

5HSRUW

7KH 5HFRJQLWLRQ DQG 6XSSRUW 3DFNDJH IRU &RXQFLOORUV LV RXWOLQHG LQ WKH 9LFWRULDQ*RYHUQPHQWV 3ROLF\ 6WDWHPHQW RQ /RFDO *RYHUQPHQW 0D\RUDO DQG &RXQFLOORU$OORZDQFHV DQG 5HVRXUFHV $SULO DQG SURYLGHV WKH IUDPHZRUN IRU VXSSRUW RI&RXQFLOORUV

7KH&LW\RI*UHDWHU%HQGLJRKDVKDGD&RXQFLOORU6XSSRUW3ROLF\VLQFHWKHHOHFWLRQRIWKHODVW&RXQFLOLQ7KHSROLF\KDVEHHQDYDLODEOHIRUSXEOLFLQVSHFWLRQ

7KHSROLF\KDVEHHQXSGDWHGWR LQFRUSRUDWHFKDQJHV LQOHJLVODWLRQQHZFRPPXQLFDWLRQRSSRUWXQLWLHVDQGDVHFWLRQRQ$FFHVVDQG,QFOXVLRQDQGVRPHH[FOXVLRQVWRWKHSROLF\

2XWOLQHGEHORZLVWKHSROLF\UHFRPPHQGHGIRUDGRSWLRQ7KH/RFDO*RYHUQPHQW$FWQRZUHTXLUHVDUHLPEXUVHPHQWRIH[SHQVHVSROLF\WREHDGRSWHGDQGEHDYDLODEOHIRUSXEOLFLQVSHFWLRQ WKLV DVSHFW LV LQFRUSRUDWHG LQWR WKH RYHUDOO SROLF\ 7KLV SROLF\ LV PRUHFRPSUHKHQVLYH WKDQ LV UHTXLUHG E\ WKH /RFDO *RYHUQPHQW $FW DQG LW SURYLGHV WKHFRPPXQLW\ZLWKDFOHDUXQGHUVWDQGLQJRIWKHVXSSRUWQHFHVVDU\IRU&RXQFLOORUVRIDPDMRUUHJLRQDOFLW\

Page 111: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

'5$)7 &281&,//2566833257 $1'5(,0%856(0(17 2)(;3(16(632/,&<

$SSURYDO'DWH

5HYLHZ'DWH*HQHUDOO\\HDUV

$XWKRU 3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV

5HVSRQVLEOH2IILFHU &UDLJ1LHPDQQ&KLHI([HFXWLYH2IILFHU

,1752'8&7,21

&RXQFLO HOHFWLRQV DUH KHOG HYHU\ IRXU \HDUV 6LJQLILFDQW GHPDQGV DQG H[SHFWDWLRQV DUHSODFHGRQ&RXQFLOORUV LQ IXOILOOLQJ WKHLU FLYLFDQG VWDWXWRU\GXWLHV 7KHVHGHPDQGV LQFOXGHDWWHQGDQFH DW QXPHURXV &RXQFLO DQG &RPPLWWHH PHHWLQJV UHSUHVHQWLQJ WKH &RXQFLO RQPDQ\RWKHURUJDQLVDWLRQVDQGFRPPXQLFDWLQJZLWKUHVLGHQWVEXVLQHVVFRPPXQLW\JURXSVDQGRWKHUVRQDZKROHUDQJHRILVVXHV

7KH /RFDO *RYHUQPHQW $FW UHTXLUHV WKH GHYHORSPHQW RI D SROLF\ WR GHDO ZLWKUHLPEXUVHPHQWRI&RXQFLOORUVH[SHQVHVDQGWKHSROLF\PXVWEHDYDLODEOHIRU SXEOLF

LQVSHFWLRQ

*LYHQWKHFRVWVDVVRFLDWHGZLWKWKHGHPDQGVDQGH[SHFWDWLRQVSODFHGRQ&RXQFLOORUVWKH&LW\RI*UHDWHU%HQGLJRKDVGHYHORSHGWKLV3ROLF\

7KLV SROLF\ SURYLGHV D EURDG RYHUYLHZ RI KRZ WKH &LW\ RI *UHDWHU %HQGLJR SURYLGHVDVVLVWDQFHDQGVXSSRUWWRWKH0D\RUDQG&RXQFLOORUV LQFDUU\LQJRXWWKHLUUROHDQGRIILFLDOGXWLHV DV &RXQFLOORUV 7KLV DVVLVWDQFH DQG VXSSRUW LV DGGLWLRQDO WR WKH 0D\RUDO DQG&RXQFLOORUDQQXDO DOORZDQFHVVHWE\6WDWH*RYHUQPHQW

6XSSRUW LVSURYLGHG LQ WKH IRUPRI0D\RUDO YHKLFOH UHJLVWUDWLRQ IHHV IRU FRQIHUHQFHVDQGIXQFWLRQVFRPPXQLFDWLRQVHTXLSPHQWPHHWLQJURRPRIILFH WUDYHODQGFKLOGFDUHH[SHQVHUHLPEXUVHPHQWPHHWLQJIDFLOLWLHVDQGWUDLQLQJ

,QWKHHYHQWRID&RXQFLOORUQRWVHUYLQJWKHLUIXOOWHUPDOO&RXQFLOSURSHUW\PXVWEHUHWXUQHGWRWKH&LW\RI*UHDWHU%HQGLJRRIILFHVDQG&RXQFLOORUVDUHQRWDEOHWRDFTXLUHWKHVHLWHPVXSRQWKHLUGHSDUWXUH

5HLPEXUVHPHQWRIERQDILGH&RXQFLOORURXWRISRFNHWH[SHQVHVDFFRUGLQJWR6HFWLRQRIWKH/RFDO*RYHUQPHQW$FWLVFRYHUHGE\WKLVSROLF\

,1)250$7,217(&+12/2*<

*HQHUDO 7KH &LW\ RI *UHDWHU %HQGLJR ZLOO SURYLGH LQIRUPDWLRQ WHFKQRORJ\ LQFOXGLQJVRIWZDUHHTXLSPHQWVXSSRUWDQGWUDLQLQJWKDWLVHIILFLHQWDQGHIIHFWLYHIRUWKHRUJDQLVDWLRQDQG &RXQFLOORUV $V IDU DV SUDFWLFDEOH D FRQVLVWHQW DSSURDFK ZLOO EH WDNHQ IRU DOO&RXQFLOORUV WR IDFLOLWDWH VXSSRUW DQG OHDUQLQJ EXW WKHUHZLOO IOH[LELOLW\ WR GDWH IRU LQGLYLGXDOQHHGV

+RPH,QWHUQHW&RQQHFWLRQ ± :LWKWKHDJUHHPHQWIRUWKH&RXQFLOORUDQGZKHUHLW LVPRVWHIIHFWLYH IRU WKH&LW\RI*UHDWHU%HQGLJRDVKDUHGKRPH LQWHUQHW FRQQHFWLRQZLOOEHXVHGZLWK&LW\RI*UHDWHU%HQGLJRSD\LQJRIWKHLQWHUQHWFKDUJH

Page 112: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

3HUVRQDO8VH ± $FFHSWDEOH DPRXQW RI SHUVRQDO XVH LV SHUPLWWHGDV ORQJ DV LW GRHVQRWDIIHFWWKHSULPDU\XVHRIWKHHTXLSPHQW

$QQXDO 8SGDWH 7KH ,QIRUPDWLRQ 0DQDJHPHQW 8QLW ,08 ZLOO DXGLW DQG XSGDWH WKHVRIWZDUHDWOHDVWDQQXDOO\&RXQFLOORUVZLOOEHUHTXLUHGWREULQJWKHHTXLSPHQWLQWRWKH,08IRUWKLVPDLQWHQDQFH

5HWXUQRI(TXLSPHQW $OO(TXLSPHQWLVWREHUHWXUQHGWRWKH,QIRUPDWLRQ6\VWHPV8QLWRQWKHFRQFOXVLRQRIWKH&RXQFLOORUV\HDUWHUPRULQWKHHYHQWWKH&RXQFLOORUUHVLJQVWKHSRVLWLRQHDUOLHU

)DXOW\(TXLSPHQW )DXOW\(TXLSPHQWRULVVXHVLVWREHUHSRUWHGWRWKH,QIRUPDWLRQ7HFKQRORJ\8QLWDWWKHHDUOLHVWSRVVLEOHFRQYHQLHQFH

/RVVRI(TXLSPHQW ,Q WKHHYHQW WKDWHTXLSPHQW LV ORVWVWROHQRUPLVSODFHG WKH,QIRUPDWLRQ7HFKQRORJ\8QLWLVWREHLQIRUPHGDVVRRQDVSRVVLEOHWRSXWLQSODFHDOOPHDVXUHV

2)),&(0((7,1*5220)$&,/,7,(6

&RXQFLOORUV DUH SURYLGHG ZLWK RIILFHPHHWLQJ URRP NQRZQ DV WKH &RXQFLOORUV¶ 5RRPIDFLOLWLHV WKDWPD\EHXVHGDWDQ\ WLPH &RXQFLOORUVPHHWLQJZLWKH[WHUQDOSDUWLHVVKRXOGDGYLVH WKH &RXQFLOORU 6XSSRUW 2IILFHU WR HQVXUH WKHPHHWLQJ URRP LV QRW EHLQJ XVHG E\RWKHU &RXQFLOORUV 7KH &RXQFLOORUV¶ 5RRP LQFOXGHV D FRPSXWHU FRQQHFWHG WR &LW\ RI*UHDWHU%HQGLJRVFRPSXWHUV\VWHP

,Q DGGLWLRQ WR WKH&RXQFLOORUV¶5RRP WKH0D\RU LV SURYLGHGZLWK D VHSDUDWH RIILFH 7KH0D\RU¶V RIILFH LQFOXGHV D WHOHSKRQH DQG D FRPSXWHU FRQQHFWHG WR &RXQFLO¶V FRPSXWHUV\VWHP

7KH&RXQFLOORUVDQGWKH0D\RUDUHWRXVH&LW\RI*UHDWHU%HQGLJRFRSLHUSULQWHU ORFDWHGRQWKHWRSIORRURIWKH/\WWOHWRQ7HUUDFH2IILFH

75$,1,1*$1''(9(/230(17

&LW\ RI *UHDWHU %HQGLJR ZLOO PHHW WKH FRVW RI SDUWLFLSDWLRQ LQ WUDLQLQJ DQG GHYHORSPHQWFRXUVHV VHPLQDUV DQG DFWLYLWLHV LQ D YDULHW\ RI DUHD RI SURIHVVLRQDO DQG SHUVRQDOGHYHORSPHQWZLWKLQWKHOLPLWVRIWKHEXGJHWDSSURYHGE\&RXQFLO7KHVH SURJUDPV DUHJHQHUDOO\RIIHUHGE\SURIHVVLRQDOERGLHVSULYDWHRUJDQLVDWLRQVDQGHGXFDWLRQDOLQVWLWXWLRQVLQ9LFWRULD

7KH&LW\RI*UHDWHU%HQGLJRZLOOSD\SURIHVVLRQDOPHPEHUVKLSIHHVIRU&RXQFLOORUVZKHUHWKHUH LV D GLUHFW EHQHILW WR WKH &RXQFLOORU SHUIRUPLQJ WKHLU UHVSRQVLELOLWLHV DQG WR WKHRUJDQLVDWLRQ IRU H[DPSOH PHPEHUVKLS RI WKH $XVWUDOLDQ /RFDO *RYHUQPHQW :RPHQV$VVRFLDWLRQ

&,7<2)*5($7(5%(1',*29(+,&/(6

0D\RUDO9HKLFOH WKH&LW\RI*UHDWHU%HQGLJRZLOOSURYLGHWKH0D\RUDYHKLFOHIRUKLVKHUH[FOXVLYH XVH GXULQJ WKHLU WHUP 7KH SURYLVLRQ RI WKH YHKLFOH LV VXEMHFW WR WKH IROORZLQJWHUPV DQGFRQGLWLRQV

Page 113: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

D 7KDWWKH0D\RUZLOOEHUHVSRQVLEOHIRUPDLQWDLQLQJWKHYHKLFOHLQDUHDVRQDEOHVWDWH RI FOHDQOLQHVV DQG NHHSLQJ WKH YHKLFOH RIIVWUHHW DW KLVKHU SODFH RIUHVLGHQFH 7KH &LW\ RI *UHDWHU %HQGLJR ZLOO RUJDQLVH UHJXODU IRUWQLJKWO\FOHDQLQJRIWKH0D\RUDOYHKLFOH

E $OO IXHO IRU ERWK SULYDWH DQG RIILFLDO &RXQFLO XVH ZLOO EH SDLG IRU E\ &LW\ RI*UHDWHU%HQGLJR

&RPSRXQG 9HKLFOH LI D &RXQFLOORU LV DWWHQGLQJ D FRQIHUHQFH RU PHHWLQJ RXWVLGH WKHPXQLFLSDOLW\WKH&R*%ZRXOGSUHIHUDQGHQFRXUDJHD&RXQFLOORUWRXVHD&R*%FRPSRXQGYHKLFOHWKHERRNLQJRIWKHYHKLFOHFDQEHDUUDQJHGWKURXJKWKH&RXQFLOORU6XSSRUW2IILFHU$OWHUQDWLYHO\ ERRNLQJVWLFNHWV FDQ EH DUUDQJHG IRU WKH XVH RI SXEOLF WUDQVSRUW ZKHUHDSSURSULDWHDQGFDQEHDUUDQJHGWKURXJKWKH&RXQFLOORU6XSSRUW2IILFHU

&21)(5(1&(6$1')81&7,216

&RQIHUHQFHV 7KH &LW\ RI *UHDWHU %HQGLJR ZLOO FRYHU UHJLVWUDWLRQ IHHV DVVRFLDWHG ZLWKDWWHQGDQFHE\&RXQFLOORUV DW FRQIHUHQFHV VHPLQDUVDQG IXQFWLRQVKHOG ORFDOO\ LQWHUVWDWHDQGRYHUVHDVZLWKLQWKHOLPLWVRIWKHEXGJHWDSSURYHGE\&RXQFLO7KHVHDUHQRUPDOO\KHOGE\ORFDOJRYHUQPHQWUHODWHGRUJDQLVDWLRQVSURIHVVLRQDOERGLHVDQGLQVWLWXWLRQVDQGSULYDWHVHFWRUSURYLGHUVRQLVVXHVDQGHYHQWVZKLFKLPSDFWRQWKHUROHRI&RXQFLOORUVDQGWKH&LW\LQ JHQHUDO 7KH FRVW RI SDUWQHUV DWWHQGLQJ FRQIHUHQFHV ZLOO QRW EH PHW E\ WKH &LW\ RI*UHDWHU%HQGLJR

(YHQWV 7KH&LW\RI*UHDWHU%HQGLJRZLOOPHHWWKHFRVWRI&RXQFLOORUVDWWHQGLQJH[WHUQDOHYHQWVWRZKLFKWKH\KDYHEHHQLQYLWHG,IDSDUWQHUKDVEHHQLQYLWHGWKH&LW\RI *UHDWHU%HQGLJR ZLOO PHHW WKH FRVW RI WKH SDUWQHU ZKHUH LW LV QHFHVVDU\ IRU &RXQFLO WR EHUHSUHVHQWHGDWWKHIXQFWLRQ

&KDULW\(YHQWV 7KH&LW\RI*UHDWHU%HQGLJRZLOOPHHW WKHFRVWRI WKH0D\RURUKLVKHUUHSUHVHQWDWLYH WRDWWHQGDFKDULW\ IXQGUDLVLQJHYHQW LIRWKHU&RXQFLOORUVZLVK WRDWWHQG WRVXSSRUWWKHFKDULW\WKH\ZLOOEHUHTXLUHGWRPDNHWKHLURZQFRQWULEXWLRQWRDWWHQG

3ROLWLFDO )XQFWLRQV :KHUH &RXQFLOORUV DWWHQG D SROLWLFDO SDUW\ IXQGUDLVLQJ HYHQW IRUZKLFKSD\PHQWLVUHTXLUHGWKHFRVWLVWREHERUQHE\WKHLQGLYLGXDO&RXQFLOORUV &RXQFLO

GRHVQRWZLVKWRILQDQFLDOO\VXSSRUWDQ\SROLWLFDOSDUW\

&RXQFLOUHSUHVHQWDWLRQDWHYHQWVDQGIXQFWLRQV ,QFLUFXPVWDQFHVZKHUHWKH0D\RUKDVEHHQLQYLWHGWRDQHYHQWRUIXQFWLRQLQ DSDUWLFXODU:DUGDQGLVXQDEOHWRDWWHQGD :DUG&RXQFLOORUZLOOEHJLYHQWKHILUVWRSWLRQWRUHSUHVHQWWKH0D\RU

75$9(/(;3(16(6

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

&RXQFLOORUVDUHUHTXHVWHGWRVXEPLWYHKLFOH ORJERRNVRQDPRQWKO\EDVLVDQGSD\PHQWZLOOEHPDGHZLWKLQWZRZHHNV

Page 114: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

,QWHUVWDWH7KH &LW\ RI *UHDWHU %HQGLJR ZLOO FRYHU FRVWV DVVRFLDWHG ZLWK &RXQFLOORUV WUDYHOOLQJLQWHUVWDWH RQ &RXQFLO EXVLQHVV DV DSSURYHG E\ WKH &RXQFLO ZLWK WKH H[FHSWLRQ RI WKH0D\RU ZKR GRHV QRW UHTXLUH DSSURYDO RI WKH &RXQFLO ZLWKLQ WKH OLPLWV RI WKH EXGJHWDSSURYHGE\&RXQFLO7KLVFRPSULVHVDLUIDUHVDFFRPPRGDWLRQFRVWVFDUKLUHWD[LVDQGPHDOV

2YHUVHDV7KH &LW\ RI *UHDWHU %HQGLJR ZLOO FRYHU FRVWV DVVRFLDWHG ZLWK &RXQFLOORUV WUDYHOOLQJRYHUVHDVRQ&RXQFLOEXVLQHVVDVDSSURYHGE\WKH&RXQFLOZLWKLQWKHOLPLWVRIWKHEXGJHWDSSURYHGE\&RXQFLO7KLVFRPSULVHVDLUIDUHVDFFRPPRGDWLRQYLVDVSDVVSRUWFRVWVFDUKLUHWD[LVDQGPHDOV

&+,/'&$5(

7KH &LW\ RI *UHDWHU %HQGLJR ZLOO PHHW FRVWV DVVRFLDWHG ZLWK FKLOG FDUH LQFXUUHG E\&RXQFLOORUVZKLOHXQGHUWDNLQJGXWLHVDV&RXQFLOORUV5HLPEXUVHPHQWZLOOEHRQWKHEDVLVRIWD[LQYRLFHVDQGUHFHLSWVVXEPLWWHGRULQWKHFDVHRILQIRUPDODUUDQJHPHQWVDVWDWHPHQWRIKRXUVFRVWGDWHVWLPHVDQGSXUSRVHIRUZKLFKWKHFKLOGFDUHZDVSURYLGHG

&281&,//256:(/)$5(

&RXQFLOORUVPD\DSSURDFKWKH&KLHI([HFXWLYH2IILFHUZLWKUHJDUGWRDQ\VSHFLILFJXLGDQFHFRXQVHOOLQJRUFRDFKLQJWKDWPD\EHUHTXLUHGWRHQKDQFHWKHLUSHUIRUPDQFHDVD&RXQFLOORU

&RXQFLOORUVHQFRXQWHULQJGLIILFXOWLHVZLWKWKHUROHRUSHUVRQDOGLIILFXOWLHVWKDWPD\LPSDFWRQWKHLU UROH DV D &RXQFLOORU DUH DEOH WR VHHN FRXQVHOOLQJ RQ D FRQILGHQWLDO EDVLV WKURXJK$FFHVV&HQWDFDUH&RXQVHOOLQJ6HUYLFHV7KHVHUYLFHFDQEHFRQWDFWHGRQDKRXUGD\ SHU ZHHN EDVLV RQ 1RUPDOO\ XS WR WKUHH VHVVLRQV DUH SURYLGHGKRZHYHUIXUWKHUVHVVLRQVFDQEHDUUDQJHGRQDQHHGVEDVLV

5(,0%856(0(172)(;3(16(6

,W LVDQWLFLSDWHG WKDW WKHUHZLOOEHRFFDVLRQDOO\VPDOOH[SHQVHVVXFKDV WD[L IDUHVSDUNLQJIHHVPHDOVSXEOLFWUDQVSRUWIDUHVSDLGGLUHFWO\E\&RXQFLOORUVZKHQWUDYHOOLQJIRU WUDLQLQJFRQIHUHQFHVRURWKHUHYHQWV

,I D &RXQFLOORU H[SHFWV WR LQFXU DQ RXWRISRFNHW H[SHQVH RI PRUH WKDQ WKH&RXQFLOORUVKRXOGHQGHDYRXUWRFRQWDFWWKH0DQDJHU([HFXWLYH6HUYLFHVRU&(2WRFKHFN

ZKHWKHUDQRXWRISRFNHW H[SHQVH LVDSSURSULDWHRUZKHWKHUDQRWKHUPHWKRGRI SD\PHQWZRXOGEHPRUHVXLWDEOH

7KH &LW\ RI *UHDWHU %HQGLJR ZLOO UHLPEXUVH D &RXQFLOORUV IRU H[SHQVHV LI WKH&RXQFLOORU

DDSSOLHVLQZULWLQJIRUUHLPEXUVHPHQWRIH[SHQVHVDQG

EHVWDEOLVKHVLQWKHDSSOLFDWLRQWKDWWKHH[SHQVHVZHUHUHDVRQDEOHERQDILGH&RXQFLOORUVRXWRISRFNHWH[SHQVHVLQFXUUHGZKLOHSHUIRUPLQJGXWLHVDVD&RXQFLOORU

7D[,QYRLFHVDQG5HFHLSWV5HLPEXUVHPHQWRIRXWRISRFNHWH[SHQVHVLVRQ WKHEDVLVRIWD[LQYRLFHVDQGUHFHLSWVDQGGHWDLOVRIWKHGDWHDQGSXUSRVHRIWKHHYHQWIXQFWLRQDVVRFLDWHGZLWKWKHH[SHQGLWXUH

&RXQFLOORUV VXEPLWWLQJ FODLPV IRU UHLPEXUVHPHQW RI H[SHQVHV PXVW GR VR XWLOLVLQJ&RXQFLOORU5HLPEXUVHPHQW5HTXHVWIRUP$SSHQGL[$

Page 115: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

5(3257,1*&281&,//256(;3(16(6

&ODLPV IRU FRPPXQLFDWLRQV WUDYHO RXW RI SRFNHW H[SHQVHV DQG FKLOG FDUH DUH WR EHVXEPLWWHGWRWKH0DQDJHU([HFXWLYH6HUYLFHVIRUDSSURYDO

&RVWV DVVRFLDWHGZLWK LQWHUVWDWH DQG RYHUVHDV WUDYHO DUH UHFRUGHG DQG DUH DYDLODEOH IRUSXEOLFLQVSHFWLRQLQDFFRUGDQFHZLWK/RFDO*RYHUQPHQW$FW

7KH &LW\ RI *UHDWHU %HQGLJR SURYLGHV GHWDLOV RI &RXQFLOORU H[SHQVHV LQ WKH IROORZLQJFDWHJRULHVRQDWKUHHPRQWKO\EDVLVWRWKH&RXQFLOORUV)RUXP

6FKHGXOHRI&RXQFLOORUV([SHQVHVIRUWKH3HULRG-XO\WR6HSWHPEHU

&DWHJRU\ &U &U &U &U &U &U &U &U &U 7RWDO&RPPXQLFDWLRQV&RQIHUHQFHVDQG)XQFWLRQV7UDLQLQJDQG'HYHORSPHQW7UDYHO /RFDO7UDYHO ,QWHUVWDWH7UDYHO 2YHUVHDV&KLOG&DUH

7RWDO([SHQVHV

$&&(66$1',1&/86,21

7KH&LW\RI*UHDWHU%HQGLJRZLOOFRPPLW WRSURYLGHVXSSRUW WRDQLQGLYLGXDOZLWKDGLVDELOLW\ LQ WKHLU WHUP DV &RXQFLOORU 6XSSRUW SURYLGHG ZLOO EH RQ WKH EDVLV RIGRFXPHQWDWLRQ SURYLGHG E\ D PHGLFDO SUDFWLWLRQHU ZLWK ZRUNSODFH PRGLILFDWLRQVEHLQJ DVVHVVHG DV IDLU DQG UHDVRQDEOH E\ D TXDOLILHG $OOLHG +HDOWK 3URIHVVLRQDOVXFKDVDQ2FFXSDWLRQDO7KHUDSLVW

6XSSRUW ZLOO EH DUUDQJHG E\ VWDII RQ WKH EDVLV RI WKH UHFRPPHQGDWLRQV RI KHDOWKSURIHVVLRQDOV

(;&/86,216

7KLV SROLF\ GRHV QRW LQFOXGH FDWHULQJ UHSODFHPHQW DQG DGGLWLRQDO PLQRU HTXLSPHQW RU QRQDWWHQGDQFH DW DQ HYHQW ZKHUH IXQGV DUH QRQUHIXQGDEOH 3URYLVLRQ RI OLJKWLQJ KHDWLQJ DQGSURYLVLRQRIIXUQLWXUH DWWKH&RXQFLORIILFHLVDOVRH[FOXGHGIURPWKLVSROLF\

&RQVXOWDWLRQ&RPPXQLFDWLRQ

7KHGUDIWSROLF\ZDVGLVFXVVHGZLWK&RXQFLOORUVDVSDUWRIWKHWUDQVLWLRQSURFHVV

5HVRXUFH,PSOLFDWLRQV

7KH EXGJHW IRU &RXQFLOORU UHLPEXUVHPHQWV LV 3UHSDULQJ D EXGJHW IRU&RXQFLOORUVH[SHQVHVLQDQHOHFWLRQ\HDULVGLIILFXOWDVWKHUHDUHDUDQJHRI LVVXHVWKDWFDQ DIIHFW &RXQFLOORUV H[SHQVHV LQFOXGLQJ WLPH DYDLODEOH WR &RXQFLOORUV IRU &RXQFLOGXWLHVZKHUH&RXQFLOORUVOLYHQXPEHURIDGGLWLRQDOFRPPLWWHHVHWF

Page 116: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

$IXUWKHUIDFWRUWKDWLVOLNHO\WRLPSDFWRQH[SHQVHVLVWKHZD\LQZKLFKWKHPXOWLPHPEHU:DUGDUUDQJHPHQWVDUHPDQDJHGE\&RXQFLOORUV

7KHUHZLOO DOVR EH FRVWV DVVRFLDWHGZLWK WKH QHZ $FFHVV DQG ,QFOXVLRQ SURYLVLRQ EXWVRPHIXQGLQJRSSRUWXQLWLHVDUHEHLQJH[SORUHG

$IRUHFDVWWRWKHHQGRIWKHILQDQFLDO\HDUZLOOEHDYDLODEOHE\0DUFK

$WWDFKPHQWV

1LO

5(&200(1'$7,21

7KDW&RXQFLODGRSWWKH&RXQFLOORUV6XSSRUWDQG5HLPEXUVHPHQW RI([SHQVHV3ROLF\

5(62/87,21

0RYHG&U&KDSPDQ6HFRQGHG&U&DPSEHOO

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 117: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&281&,/$1'&20081,7<&200,77((6)25

'RFXPHQW,QIRUPDWLRQ

$XWKRU 3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV

5HVSRQVLEOH &UDLJ1LHPDQQ &KLHI([HFXWLYH2IILFHU2IILFHU

6XPPDU\3XUSRVH

7KHSXUSRVHRIWKLVUHSRUWLVWRDSSRLQW&RXQFLOORUVDQGVWDIIPHPEHUVWRYDULRXV&RXQFLODQGFRPPXQLW\FRPPLWWHHVIRUWKH 0D\RUDO7HUP

3ROLF\&RQWH[W

8VH PHDQLQJIXO DQG HIIHFWLYH FRPPXQLFDWLRQ DQG HQJDJHPHQW ZLWK DOO VHFWRUV RI WKHFRPPXQLW\DVDQLQSXWWRGHFLVLRQPDNLQJ

5HSRUW

7KH FRPPLWWHHV RXWOLQHG EHORZ DUH ODUJHO\ DGYLVRU\ RU PDQDJHPHQW FRPPLWWHHVHVWDEOLVKHG E\ &RXQFLO DQG LQGHSHQGHQW ERDUGV FRPSDQLHV DQG LQFRUSRUDWHGDVVRFLDWLRQV WRZKLFKD&RXQFLOORU LVDSSRLQWHG 6WDIIDUH LQYROYHGZLWKVRPHRI WKHVHFRPPLWWHHV

ƵĚŝƚŽŵŵŝƚƚĞĞƌƐZŽĚĂŵƉďĞůůĂŶĚĂƌƌLJ>LJŽŶƐ

ůďĞƌƚZŽLJZĞƐĞƌǀĞWƌĞĐŝŶĐƚƌWĞƚĞƌŽdž

ƵƐƚƌĂůŝĂŶ/ŶĚƵƐƚƌLJ'ƌŽƵƉƌZŽĚ&LJĨĨĞ

ĞŶĚŝŐŽŝƌƉŽƌƚĚǀŝƐŽƌLJŽŵŵŝƚƚĞĞƌƐ:ĂŵĞƐtŝůůŝĂŵƐĂŶĚDĂƌŬtĞƌĂŐŽĚĂ

ĞŶĚŝŐŽƌƚ'ĂůůĞƌLJŽĂƌĚƌƐZŽĚ&LJĨĨĞ ĂŶĚDĂƌŬtĞƌĂŐŽĚĂ

ĞŶĚŝŐŽ/ŶǀĞŶƚŽƌǁĂƌĚƐŽŵŵŝƚƚĞĞƌƐWĞƚĞƌŽdž ĂŶĚĂƌƌLJ>LJŽŶƐ

ĞŶĚŝŐŽdžŚŝďŝƚŝŽŶĞŶƚƌĞĚǀŝƐŽƌLJŽŵŵŝƚƚĞĞƌZŽĚĂŵƉďĞůů

Page 118: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

ĞŶĚŝŐŽ'ŽůĚĞŶƌĂŐŽŶDƵƐĞƵŵ/ŶĐƌZŽĚ&LJĨĨĞ

ĞŶĚŝŐŽ>ŝƋƵŽƌĐĐŽƌĚƌ:ĂŵĞƐtŝůůŝĂŵƐ

ĞŶĚŝŐŽDĂŶƵĨĂĐƚƵƌŝŶŐ'ƌŽƵƉƌĂƌƌLJ>LJŽŶƐ

ĞŶĚŝŐŽDĂƵďŝƐƐĞ&ƌŝĞŶĚƐŚŝƉŽŵŵŝƚƚĞĞƌWĞƚĞƌŽdž

ĞŶĚŝŐŽZĞŐŝŽŶĂůƌĐŚŝǀĞĞŶƚƌĞƌZŽĚ&LJĨĨĞ

ĞŶĚŝŐŽdŽƵƌŝƐŵŽĂƌĚƌůŝƐĞŚĂƉŵĂŶ

ĞŶĚŝŐŽdƌƵƐƚƌ ůŝƐĞŚĂƉŵĂŶ

ĞŶĚŝŐŽ^ƚĂĚŝƵŵ>ŝŵŝƚĞĚƌĂƌƌLJ>LJŽŶƐ

ĞŶĚŝŐŽsŽůƵŶƚĞĞƌZĞƐŽƵƌĐĞĞŶƚƌĞŽĂƌĚƌZŽĚĂŵƉďĞůů

ƵƐŝŶĞƐƐĂŶĚŽŵŵƵŶŝƚLJEĞƚǁŽƌŬϯϱϱϲƌWĞƚĞƌŽdž

ĂůĚĞƌ,ŝŐŚǁĂLJ/ŵƉƌŽǀĞŵĞŶƚŽŵŵŝƚƚĞĞƌ:ĂŵĞƐtŝůůŝĂŵƐ

ĂůĚĞƌZĞŐŝŽŶĂůtĂƐƚĞDĂŶĂŐĞŵĞŶƚ'ƌŽƵƉƌĂƌƌLJ>LJŽŶƐ

ĂŵƉĂƐƉĞZƵŶŽĂƌĚƌ:ĂŵĞƐtŝůůŝĂŵƐ

ĞŶƚƌĂůsŝĐƚŽƌŝĂŶ'ƌĞĞŶŚŽƵƐĞůůŝĂŶĐĞƌZŽĚ&LJĨĨĞ

ŽƐƚĞƌĨŝĞůĚŶǀŝƌŽŶŵĞŶƚĂůZĞǀŝĞǁŽŵŵŝƚƚĞĞƌ,ĞůĞŶ>ĞĂĐŚ

ƌŽĐŽĚŝůĞ'ŽůĚ&ŽƐƚĞƌǀŝůůĞ'ŽůĚDŝŶĞŶǀŝƌŽŶŵĞŶƚĂůZĞǀŝĞǁŽŵŵŝƚƚĞĞƌƐZŽĚĂŵƉďĞůů;ŚĂŝƌͿĂŶĚ:ĂŵĞƐtŝůůŝĂŵƐ

Page 119: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

ŝƐĐŽǀĞƌLJ^ĐŝĞŶĐĞĂŶĚdĞĐŚŶŽůŽŐLJĞŶƚƌĞƌDĂƌŬtĞƌĂŐŽĚĂ

ĂŐůĞŚĂǁŬDĞĐŚĂŶŝĐƐ/ŶƐƚŝƚƵƚĞŽŵŵŝƚƚĞĞƌWĞƚĞƌŽdž

ŵƉŽǁĞƌŝŶŐĂŐůĞŚĂǁŬƌWĞƚĞƌŽdž

ŶǀŝƌŽŶŵĞŶƚĂůdĂƐŬĨŽƌĐĞƌƐWĞƚĞƌŽdžZŽĚ&LJĨĨĞ ĂŶĚ,ĞůĞŶ >ĞĂĐŚ

&ĂƌŵŝŶŐŽŶƐƵůƚĂƚŝǀĞŽŵŵŝƚƚĞĞƌƐ:ĂŵĞƐtŝůůŝĂŵƐĂŶĚůŝƐĞŚĂƉŵĂŶ

&ŝŶĂŶĐĞŽŵŵŝƚƚĞĞƌƐDĂƌŬtĞƌĂŐŽĚĂZŽĚ&LJĨĨĞWĞƚĞƌŽdžĂƌƌLJ>LJŽŶƐ :ĂŵĞƐtŝůůŝĂŵƐ ĂŶĚZƵĨĨĞůů ;ĂŶĚŽƚŚĞƌŽƵŶĐŝůůŽƌƐǁŚŽǁŝƐŚƚŽĂƚƚĞŶĚͿ

'ƌĞĂƚĞƌĞŶĚŝŐŽZƵƌĂů^ƵƉƉŽƌƚEĞƚǁŽƌŬƌƐ:ĂŵĞƐtŝůůŝĂŵƐĂŶĚ,ĞůĞŶ>ĞĂĐŚ

<ĂŶŐĂƌŽŽ&ůĂƚƋƵĂƚŝĐ>ĞŝƐƵƌĞĞŶƚƌĞŽŵŵƵŶŝƚLJZĞĨĞƌĞŶĐĞ'ƌŽƵƉƌƐůŝƐĞŚĂƉŵĂŶZŽĚ&LJĨĨĞĂŶĚĂƌƌLJ>LJŽŶƐ

<ĂŶŐĂƌŽŽ&ůĂƚƌƚ/ŶĐŽŵŵŝƚƚĞĞƌůŝƐĞŚĂƉŵĂŶ

>ĂdƌŽďĞZĞŐŝŽŶĂůĚǀŝƐŽƌLJŽĂƌĚƌ:ĂŵĞƐtŝůůŝĂŵƐ

>Ă dƌŽďĞhŶŝǀĞƌƐŝƚLJĞŶĚŝŐŽƚŚůĞƚŝĐƐŽŵƉůĞdžŽŵŵŝƚƚĞĞƌůŝƐĞŚĂƉŵĂŶ

>ŽĚĚŽŶĞŶĚŝŐŽZƵƌĂůtŽŵĞŶΖƐEĞƚǁŽƌŬƌ,ĞůĞŶ>ĞĂĐŚ

>ŽĚĚŽŶĂŵƉĂƐƉĞŽƵŶĐŝůƐDĂLJŽƌͲŽĨͲƚŚĞͲĂLJ

DĂŝĚĞŶ'ƵůůLJ^ƚƌƵĐƚƵƌĞWůĂŶƌƐůŝƐĞŚĂƉŵĂŶĂƌƌLJ>LJŽŶƐĂŶĚZŽĚ&LJĨĨĞ

DƵŶŝĐŝƉĂů ƐƐŽĐŝĂƚŝŽŶŽĨsŝĐƚŽƌŝĂ;ĐŽŶĨŝƌŵĞĚŽŶůLJŽŶĞƌĞƉƌĞƐĞŶƚĂƚŝǀĞͿƌZŽĚ&LJĨĨĞƌ:ĂŵĞƐtŝůůŝĂŵƐ;ĂůƚĞƌŶĂƚŝǀĞͿ

DƵŶŝĐŝƉĂůŵĞƌŐĞŶĐLJDĂŶĂŐĞŵĞŶƚWůĂŶŶŝŶŐŽŵŵŝƚƚĞĞƌZŽĚĂŵƉďĞůů

Page 120: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

DƵŶŝĐŝƉĂů&ŝƌĞDĂŶĂŐĞŵĞŶƚWůĂŶŶŝŶŐŽŵŵŝƚƚĞĞƌZŽĚĂŵƉďĞůů

EĂƚƵƌĂůŶǀŝƌŽŶŵĞŶƚĚǀŝƐŽƌLJŽŵŵŝƚƚĞĞƌZŽĚ&LJĨĨĞ

EŽƌƚŚĞŶƚƌĂů'ŽůĚĨŝĞůĚƐ>ŝďƌĂƌLJŽƌƉŽƌĂƚŝŽŶƌZŽĚ&LJĨĨĞ

ZĞŐŝŽŶĂůŝƚŝĞƐsŝĐƚŽƌŝĂDĂLJŽƌͲŽĨͲƚŚĞͲĂLJ

hŶŝƚLJDŝŶŝŶŐŽŵŵƵŶŝƚLJĚǀŝƐŽƌLJŽĂƌĚƌ>ŝƐĂZƵĨĨĞůů

hŶŝƚLJDŝŶŝŶŐŶǀŝƌŽŶŵĞŶƚĂůZĞǀŝĞǁŽŵŵŝƚƚĞĞƌ WĞƚĞƌŽdž

tĂƐƚĞZĞƐŽƵƌĐĞĚǀŝƐŽƌLJŽŵŵŝƚƚĞĞƌƐůŝƐĞŚĂƉŵĂŶĂŶĚWĞƚĞƌŽdž

tŽƌŬƐƉĂĐĞƵƐƚƌĂůŝĂ>ŝŵŝƚĞĚƌĂƌƌLJ>LJŽŶƐ

dŚĞĨŽůůŽǁŝŶŐƚŚƌĞĞĐŽŵŵŝƚƚĞĞƐŚĂǀĞƉƌĞǀŝŽƵƐůLJŽŶůLJŚĂĚŽŶĞŽƵŶĐŝůůŽƌƌĞƉƌĞƐĞŶƚĂƚŝǀĞ

ĞŶĚŝŐŽĂƐƚĞƌ&ĞƐƚŝǀĂůĚǀŝƐŽƌLJŽĂƌĚƌƐZŽĚ&LJĨĨĞ;ŚĂŝƌͿĂŶĚ,ĞůĞŶ>ĞĂĐŚ

,ĞƌŝƚĂŐĞĚǀŝƐŽƌLJŽŵŵŝƚƚĞĞƌƐWĞƚĞƌŽdž;ŚĂŝƌͿĂŶĚDĂƌŬtĞƌĂŐŽĚĂ

^ŝƐƚĞƌŝƚŝĞƐŽŵŵŝƚƚĞĞƌƐ:ĂŵĞƐtŝůůŝĂŵƐ ĂŶĚ,ĞůĞŶ>ĞĂĐŚ

5(&200(1'$7,21

7KDW&RXQFLOPDNHDSSRLQWPHQWVWRFRPPLWWHHVDVRXWOLQHGLQWKLVUHSRUW DQGDPHQGWKH&KDUWHU IRU WKH +HULWDJH $GYLVRU\ &RPPLWWHH 6LVWHU &LWLHV &RPPLWWHH DQG %HQGLJR(DVWHU)HVWLYDO$GYLVRU\%RDUGWRDOORZIRUWZR&RXQFLOORUUHSUHVHQWDWLYHV

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U/HDFK

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 121: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

352326('&281&,/0((7,1*'$7(6)25

'RFXPHQW,QIRUPDWLRQ

$XWKRU 3HWHU'DYLHV0DQDJHU([HFXWLYH6HUYLFHV

5HVSRQVLEOH &UDLJ1LHPDQQ &KLHI([HFXWLYH2IILFHU2IILFHU

6XPPDU\3XUSRVH

7KHSXUSRVHRIWKLVUHSRUWLVWRVHW&RXQFLO0HHWLQJGDWHVIRU

3ROLF\&RQWH[W

'HPRQVWUDWHVWURQJFRUSRUDWHJRYHUQDQFH

5HSRUW

7KHUH KDYHEHHQD QXPEHU RI LQWHUQDO DQGH[WHUQDO HQTXLULHVDERXWPHHWLQJ GDWHV IRU /DVW \HDU D VPDOO FDOHQGDU ZDV SXEOLVKHG ZLWK PHHWLQJ GDWHV WKDW FRXOG EHSURYLGHGWRUHVLGHQWV,WZRXOGEHXVHIXOLI&RXQFLOFRXOGVHWWKHIRUPDOPHHWLQJ GDWHVWRDOORZPRUHFHUWDLQW\IRUSODQQLQJDKHDG7KHVHPHHWLQJVFDQEHFKDQJHGLIQHFHVVDU\

,WLVSURSRVHGWKDWWKHIROORZLQJ2UGLQDU\&RXQFLO0HHWLQJDQG6SHFLDO0HHWLQJGDWHVIRU EH DGRSWHG 7KH GDWHV DUH JHQHUDOO\ EDVHG RQ D WKUHHZHHN F\FOH ZLWKRSSRUWXQLWLHV IRU FRPPXQLW\ SUHVHQWDWLRQV DQG VWUDWHJLF SODQQLQJ LQ WKH WZR SUHFHGLQJZHHNV7KH2UGLQDU\0HHWLQJVZLOOEHKHOGRQD:HGQHVGD\LQWKH)LUVW)ORRU5HFHSWLRQ5RRP%HQGLJR7RZQ+DOOFRPPHQFLQJDWSP

-DQXDU\)HEUXDU\0DUFK0DUFK$SULO0D\0D\-XQH-XO\-XO\$XJXVW6HSWHPEHU2FWREHU2FWREHU1RYHPEHU0RQGD\6SHFLDO0HHWLQJRI&RXQFLOWR(OHFWWKH0D\RUIRUDQGFRQVLGHUDWLRQRI&RXQFLODQG&RPPXQLW\&RPPLWWHHV

Page 122: Council Meeting Minutes 5 December 2012

2XU3HRSOH2XU3URFHVVHV 5HSRUWV2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

1RYHPEHU'HFHPEHU'HFHPEHU

5HVRXUFH,PSOLFDWLRQV

6WDWXWRU\DGYHUWLVLQJRIWKHPHHWLQJGDWHVLVDFFRPPRGDWHGZLWKLQWKHEXGJHW

5(&200(1'$7,21

7KDW WKH2UGLQDU\0HHWLQJ RI&RXQFLO GDWHV IRU DQG WKH6SHFLDO0HHWLQJ IRU WKH(OHFWLRQ RI WKH 0D\RU IRU DQG &RQVLGHUDWLRQ RI &RXQFLO DQG &RPPXQLW\&RPPLWWHHVDVRXWOLQHGLQWKLVUHSRUWEHFRQILUPHGDQGDGYHUWLVHG

5(62/87,21

0RYHG&U)\IIH6HFRQGHG&U/\RQV

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

Page 123: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

85*(17%86,1(66

1LO

127,&(62)027,21

1LO

&281&,//2565(32576

&U )\IIH UHSRUWHG RQ KLV DWWHQGDQFH DW WKH $QQXDO *HQHUDO 0HHWLQJ RI WKH 0XQLFLSDO$VVRFLDWLRQ RI 9LFWRULD DWWHQGDQFH DW D &KULVWPDV IXQFWLRQ IRU %HQGLJR 9ROXQWHHU5HVRXUFH &HQWUH DWWHQGDQFH DW WKH ODXQFK RI WKH /LEUDU\ 5HSRUW DW WKH 0LQLVWHULDO$GYLVRU\ &RXQFLO DWWHQGDQFH DW 0DLGHQ *XOO\ &DUROV E\ &DQGOHOLJKW DWWHQGDQFH DW6XQ6PDUWSUHVHQWDWLRQWRDORFDOSULPDU\VFKRRO

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

&U /\RQV UHSRUWHG RQ KLV DWWHQGDQFH DW WKH $QQXDO *HQHUDO 0HHWLQJ RI WKH %HQGLJR7UXVW DWWHQGDQFH DW %HQGLJR 6WDGLXP PHHWLQJ DWWHQGDQFH DW WKH &DOGHU 5HJLRQDO:DVWH 0DQDJHPHQW *URXS PHHWLQJ DWWHQGDQFH DW D PHHWLQJ ZLWK WKH (QYLURQPHQW3URWHFWLRQ $XWKRULW\ UH FDOFLQH VDQGV LVVXH DWWHQGDQFH DW WKH &RPPXQLW\ 3ULRULWLHV)RUXPDWWHQGDQFHDWWKH0DLGHQ*XOO\6WUXFWXUH3ODQPHHWLQJ

&U/HDFK UHSRUWHGRQKHUDWWHQGDQFHDWD:DUG0HHWLQJDWWHQGDQFHDWDSUHVHQWDWLRQIURP6XQ6PDUW WR WKH5HGHVGDOH3ULPDU\6FKRRODWWHQGDQFHDW WKH ODXQFKRI WKHQHZILUH WDQNHU DW 5HGHVGDOH DWWHQGDQFH DW WKH SUHVHQWDWLRQ RI &DGHWV DW 3DVVFKHQGHDOH%DUUDFNVDWWHQGDQFHDWWKHKDQGRYHURIQHZHTXLSPHQWWRWKH&)$

&U &R[ UHSRUWHG RQ KLV DWWHQGDQFH DW WKH <RXWK /HDGLQJ WKH :D\ &RQIHUHQFHDWWHQGDQFH DW D:DUG0HHWLQJ DW+XQWO\ DWWHQGDQFHDW DPHHWLQJZLWK:DWVRQ6WUHHWUHVLGHQWV KLJKOLJKWHG WKH IRUWKFRPLQJ VHVVLRQRQ )RFXVRQ/RQJ*XOO\ DWWHQGDQFHDWWKH ODXQFK RI QHZ OLEUDU\ VHUYLFHV DW (DJOHKDZN UHSRUWHG RQ D YLVLW WR 'UXPPDUWLQDWWHQGDQFHDW WKH VLJQRII RI JURXQGZDWHUSODQVE\0LQLVWHU:DOVK DWWHQGDQFHDW WKH5HYLHZRIWKH5LYHUV+HDOWK6WUDWHJ\

&U:HUDJRGDUHSRUWHGRQKLVDWWHQGDQFHDWWKH6XQ6PDUWSUHVHQWDWLRQDWDORFDOSULPDU\VFKRRODWWHQGDQFHDWDQHYHQWDW/D7UREH8QLYHUVLW\DWWHQGDQFHDWWKHVHDVRQODXQFKRIWKH&DSLWDO7KHDWUHDWWHQGDQFHDWWKH$QQXDO*HQHUDO0HHWLQJRI6W/XNHV$QJOLFDUHDWWHQGDQFH DW WKH 27,6 )RXQGDWLRQ &KULVWPDV IXQFWLRQ DWWHQGDQFH DW WKH GLVFRXQWHGPLFURFKLSSLQJGD\DW+HDWKFRWHDWWHQGDQFHDWWKHUHFHQWO\ODXQFKHG6DSSKLUHVILOP

Page 124: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

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

0$<2565(3257

+HU:RUVKLSWKH0D\RU&U/LVD5XIIHOOWDEOHGDUHSRUWRQKHUDWWHQGDQFHDWWKHIROORZLQJPHHWLQJVDQGHYHQWV

$WWHQGHGLQWHUYLHZVZLWK%HQGLJR$GYHUWLVHU$%&5DGLR:,11HZVDQG3KRHQL[)0 0HWZLWKYDULRXVUHVLGHQWVDQGJURXSVUHJDUGLQJDUDQJHRILVVXHV $WWHQGHG WKH &RXQFLOORU 7UDQVLWLRQ :RUNVKRS ZRUNLQJ WRJHWKHU ZLWK ([HFXWLYH

0DQDJHPHQW7HDP $WWHQGHGDQDUWH[KLELWLRQDWWKH%HQGLJR3RWWHU\ $WWHQGHGWKHRSHQLQJRI6DQGKXUVW0HGLFDO3UDFWLFH $WWHQGHGWKH5HJLRQDO&LWLHV9LFWRULDPHHWLQJ &KDLUHGWKH&RXQFLOORUV¶)RUXP 3DUWLFLSDWHGLQPHGLDRSSRUWXQLW\DWWKH%HHKLYH%XLOGLQJ 3DUWLFLSDWHGLQPHGLDRSSRUWXQLW\IRUWKHLQWHUQDWLRQDOWDEOHWHQQLVHYHQW $WWHQGHGWKH%HQGLJR%RWDQLF*DUGHQVPHHWLQJ $WWHQGHGWKHFRPPXQLW\FRQYHUVDWLRQVGLQQHU 3UHVLGHGDWDSULYDWH&LWL]HQVKLS&HUHPRQ\ $WWHQGHGWKH:KLWH5LEERQ'D\&RPPXQLW\(YHQW $WWHQGHGDPHHWLQJDWWKH%HQGLJR$LUSRUW $WWHQGHGWKH&RPPXQLW\3ULRULWLHV)RUP $WWHQGHGWKHDQQXDOPHHWLQJIRUWKH%HQGLJR&HPHWHULHV7UXVW $WWHQGHGWKH:KLSVWLFN:DUG0HHWLQJ +HOGDQµ2SHQ2IILFH¶LQWKH0D\RU¶VRIILFH $WWHQGHGDQGODXQFKHGWKH7KHDWUHDQG6RXO)RRG6HDVRQ &KDLUHGWKH&RXQFLOORUV¶)RUXP 3UHVHQWHGWKH'UXPPDUWLQ 3ULPDU\6FKRROZLWKWKH6XQVPDUWWK %LUWKGD\3UHVHQWDWLRQV $WWHQGHGWKH%HQGLJR&RPPXQLW\$GYHQW3DJHDQW $WWHQGHGWKH+HDWKFRWH9LVLWRU9ROXQWHHUV&KULVWPDV3DUW\ &KDLUHGWKH/RGGRQ&DPSDVSH&RXQFLOV0HHWLQJ $WWHQGHG DQG VSRNH DW WKH 2IILFLDO /DXQFK RI WKH ,QWHUQDWLRQDO 'D\ RI 3HRSOH ZLWK

'LVDELOLW\ $WWHQGHGDQGVSRNHDWWKH.DOHLGRVFRSH/RGGRQ0DOOHH([KLELWLRQ $WWHQGHGWKH&RPPXQLW\3ULRULWLHV)RUXP 3DUWLFLSDWHGLQPHGLDRSSRUWXQLW\IRUWKH%HQGLJR0DJD]LQH $WWHQGHGWKH$QQXDO3DUDGHDQG$ZDUGV&HUHPRQ\IRUWKH&DGHWV 3DUWLFLSDWHGLQPHGLDRSSRUWXQLW\IRUWKHOLJKWLQJXSRIWKH&KULVWPDV7UHH

Page 125: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&+,()(;(&87,9(2)),&(565(3257

7KH&KLHI([HFXWLYH2IILFHU0U&UDLJ1LHPDQQWDEOHGDUHSRUWRQKLVDWWHQGDQFHDWWKHIROORZLQJPHHWLQJVDQGHYHQWV

$WWHQGHGPHHWLQJRI5HJLRQDO&LWLHV9LFWRULD

$WWHQGHGPHHWLQJRI(PHUJHQF\0DQDJHPHQW&OXVWHU3LORW3URMHFW0HHWLQJ7KLVSURMHFWLVWR

SLORW WKH RSHUDWLRQ RI D 6KDUHG 6HUYLFHV HPHUJHQF\PDQDJHPHQWPRGHO ZLWK D FOXVWHU RI

PXQLFLSDOLWLHV

$WWHQGHG%HQGLJR7UXVW$QQXDO*HQHUDO0HHWLQJ

$WWHQGHG%HQGLJR6RXWK(DVW&ROOHJHRQVLWHPHHWLQJWRGLVFXVVQHWEDOOFRXUWDUUDQJHPHQWV

$WWHQGHG&KLHI2IILFHUV*URXS&RQIHUHQFHKRVWHGE\%ULPEDQNDQG:\QGKDP&RXQFLOV

3DUWLFLSDWHGLQUHJXODUPHGLDLQWHUYLHZV

$WWHQGHG&RPPXQLW\3ULRULWLHVIRUXPV

3DUWLFLSDWHGLQ&RXQFLOORUVWUDQVLWLRQGD\

$WWHQGHG%HQGLJR7UXVW%RDUGHOHFWLRQV

$WWHQGHGPHHWLQJZLWK%HQGLJR6WDGLXPUHSUHVHQWDWLYHV

$WWHQGHGPHHWLQJRI/RGGRQ0DOOHH6RXWK5HJLRQDO*URZWK3ODQ6WHHULQJ&RPPLWWHH

$WWHQGHGPHHWLQJZLWKUHSUHVHQWDWLYHRIWKH(QYLURQPHQW3URWHFWLRQ$XWKRULW\

0HW ZLWK -DQ %R\QWRQ UHFHQWO\ DSSRLQWHG WR WKH SRVLWLRQ RI 5HJLRQDO 'LUHFWRU /RGGRQ

0DOOHH 'HSDUWPHQWRI3ODQQLQJDQG&RPPXQLW\'HYHORSPHQW

3UHVHQWHGFHUWLILFDWHVWRVWDIIDWWKH$QQXDO<HDUVRI6HUYLFHFHUHPRQ\

$WWHQGHG/RGGRQ&DPSDVSH&RXQFLOVPHHWLQJ

$WWHQGHGPHHWLQJZLWK+RQ'DPLDQ'UXP

Page 126: Council Meeting Minutes 5 December 2012

2UGLQDU\0HHWLQJ 'HFHPEHU

3$*(

&21),'(17,$/6(&7,215(32576

&RQWUDFWXDO0DWWHU

5(&200(1'$7,21

7KDWWKHPHHWLQJEHFORVHGWR WKHSXEOLFWRFRQVLGHUUHSRUWV LQDFFRUGDQFHZLWK6HFWLRQGRIWKH/RFDO*RYHUQPHQW$FWDVDPHQGHGUHODWLQJWRDFRQWUDFWXDOPDWWHU

5(62/87,21

0RYHG&U)\IIHVHFRQGHG&U:LOOLDPV

7KDWWKHUHFRPPHQGDWLRQEHDGRSWHG

&$55,('

&U&R[GHFODUHGD FRQIOLFWRILQWHUHVWLQGLUHFWILQDQFLDOLQWHUHVWLQWKH6HFWLRQ&RQILGHQWLDO 5HSRUW &RQWUDFWXDO 0DWWHU DV KH LV D SDUWWLPH HPSOR\HH ZLWK:RUN6SDFH$XVWUDOLD

&U&R[OHIWWKHPHHWLQJ

7KHUHEHLQJQRIXUWKHUEXVLQHVVWKHPHHWLQJFORVHGDW SP

&RQILUPHG

'HFHPEHU &KDLUPDQ


Recommended