Tri-Party School Mitigation Agreement between the Enumclaw School District, City of Black Diamond and Yarrow Bay. December 6, 2010

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1 Tri-Party School Mitigation Agreement between the Enumclaw School District, City of Black Diamond and Yarrow Bay December 6, 2010

2 Review of Timeline Agreement October 26, 2009: Joint announcement of the Agreement with City of Black Diamond and Yarrow Bay November 5, 2009: Community Meeting Regarding Agreement at Black Diamond Elementary November 12, 2009: Community Meeting regarding agreement at Enumclaw High School Spring/Summer 2010: Hearing Examiner Process December 6, 2010: Review of Agreement December 20, 2010: Expected Action on Agreement by the Enumclaw School District

3 Major Themes of the Agreement Long-term Infrastructure, Sustainability and Security for School District Neighborhood Elementary School Locations Flexibility embedded for Future Decisions

4 Projected Students Elementary: 2025 Middle School: 680 High School: 837 *based upon 2008 student generation rates and assuming full build-out of the Master Plan Developments

5 Development Lawson Hills: 930 single family units and 320 multi-family units The Villages: 3,600 single family units and 1,200 multi-family units Total: 4,530 single family units and 1,520 multi-family units (6,050 total units)

6 Term of Agreement 15 years from the date of execution, with an automatic extension to the later of: The end of the vesting period for the longer of the MPD vesting periods; or Four years after the final plat approval of the last plat in either MPD Enumclaw School District can request an additional year

7 School Sites 4 Elementary School Sites 10 acres, 10 acres, 10 acres, 13 acres 2 Middle School Sites 24 acres, 20 acres 1 High School Site 40 acres

8 Conveyance of School Sites Cost: With the exception of providing mitigation fee credits and reimbursing mitigation fees paid by Yarrow Bay the ESD will never pay for the cost of any school site Mitigation Fees: Locked in for the life of the development

9 Mitigation Fees Single Family Fee Multi-Family Fee Years 1-5 $4,670 $1,501 Year 6- through build-out $7,782 (min)/$12,453 (max) $2,502 (min)/$4,003 (max)

10 First Elementary School Conveyed 180 days after the later of: Approval of the first MPD and resolution of appeals; or The first elementary site is a separate legal lot (which must occur 180 days after the City s approval of the first MPD)

11 First Middle School Site Conveyed when ESD receives bond approval If bond approval not received at the end of the agreement, Yarrow Bay will convey site at end of agreement if city of Black Diamond has granted plat approval for at least 1,600 units.

12 Second Elementary Site Conveyed when ESD receives bond approval and city of Black Diamond has granted plat approval for at least 1,750 units. If bond approval not received at the end of the agreement, Yarrow Bay will convey site at end of agreement if city of Black Diamond has granted plat approval for at least 1,750 units.

13 Third /Fourth Elementary Sites Conveyed when the ESD receives bond approval for each site and the city of Black Diamond has granted final plat approval for at least 3,000 and 4,500 dwelling units respectively. If bond approval is not received during the Agreement term, Yarrow Bay has no obligation to convey the sites.

14 Second Middle School Site Conveyed when district boundaries have been adjusted and bond approval for construction of the second middle school If bond approval is not received during the Agreement Term, Yarrow Bay has no obligation to convey the site.

15 High School Site High School Site identified in MPD No Conveyance for 10 years After 10 years, the developer must identify the MPD site or an alternative site of 40 usable acres During the agreement term the site will be conveyed at the passage of a bond If no bond is passed during agreement term, ESD will have an option to purchase the site and will pay mitigation fees up to value of the land. The ESD will not be required to use other money to pay for the site.

16 Due Diligence 180 days to evaluate each site after boundaries are delineated (upon the conclusion of all appeals) The district will hire qualified consultants to conduct a thorough review and assessment of each site If a site does not meet standards for a school, the three parties meet again to determine an alternative site If alternate site is not identified Yarrow Bay will be required to pay mitigation fees up to the value of the site at the time the site would have been conveyed to the district

17 Major Themes of the Agreement Long-term Infrastructure, Sustainability and Security Neighborhood School Locations Flexibility for Future

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