PONDEROSA HOMES STORM DRAIN REIMB

Section 4. Amount of Reimbursable Costs. The amount of pro rata Reimbursable Costs (plus interest per Section 7) due from each owner of the Benefited Properties ("Property Owners") is set forth on Exhibit B. The City shall pay its share within 30 days of the date of this Agreement and will use its best efforts to obtain the pro rata Reimbursable Costs from the other Property Owners such that Developer will be made whole vis a vis the Reimbursable Costs. In addition, if during the term of this Agreement, the City property is sold to a private party and is redeveloped, the City shall impose on such redevelopment an obligation for that party to reimburse Developer $172,432. Section 5. Developer's Share. Developer's share of the costs of the Improvements ($1,466,840) has been deemed contributed by reason of the completion of construction of the Improvements and the City's acceptance thereof. Section 6. Establishment of Fee. The City shall collect from the Property Owners reimbursement fees in the amounts specified in Exhibit B plus adjustments made each January Is' of each calendar year to reflect the addition of interest per Section 7 ("Reimbursement Fee or Reimbursement Fees"). Section 7. Interest. Simple interest at the rate of six percent (6%) shall be added to the Reimbursement Fee described in Section 6 herein each calendar year on January Is', beginning with 2009, as provided in Exhibit C. Section 8. Time of Collection. The City shall require payment of the Reimbursement Fees as a condition of approval of a tentative map, final parcel map, final subdivision map, or the issuance of a building permit for any development (or in the case of the City's property, redevelopment) of property within the Benefit Area. The City shall collect the Reimbursement Fees at the time of approval of any final subdivision map or parcel neap for buildable lots or upon the issuance of a building permit for any development of property within the Benefit Area. Section 9. Distribution of Fees. The Reimbursable Fees collected by City pursuant to this Agreement shall be distributed in the ratio of ninety-five percent (95%) to Developer and live percent(5%) to City. The percentage allocated to City is based upon the cost of administration of this Agreement and is sufficient to compensate City for all of its costs and expenses in connection therewith. This section shall not apply to the City's reimbursement to Developer.