BEFORE THE EAGLE CITY COUNCIL

BEFORE THE EAGLE CITY COUNCIL IN THE MATTER OF AN APPLICATION ) FOR A PLANNING UNIT MASTER PLAN FOR ) SPRING VALLEY PUMP NO. 1 FOR M3 ) EAGLE, LLC ) 1 2 3 4 FINDINGS OF FACT AND CONCLUSIONS OF LAW CASE NUMBER PU-01-12 The above-entitled Planning Unit Master Plan application came before the Eagle City Council for their action on August 26, 14, at which time public testimony was taken and the public hearing was closed. The Eagle City Council, having heard and taken oral and written testimony, and having duly considered the matter, makes the following Findings of Fact and Conclusions of Law; FINDINGS OF FACT: A. PROJECT SUMMARY: M3 Eagle LLC, represented by Mark Tate, is requesting approval of the Spring Valley Phase No. 1 Planning Unit Master Plan, a 722.4-acre (232 to be developed, 0-acres of future development area, and 90.4 acre Wastewater Re-use Site) development which includes 249 units and master plans for Land Use, Street and Circulation, Potable Water, Wastewater, Drainage, Pressure Irrigation, Public Facilities (Schools, Library, Police & Fire/Emergency Service), Parks, Trails and Open Space, and Super Pads, pursuant to the Spring Valley Development Agreement. The 722.4-acre site is generally located on the east side of State Highway 16 at Equest Lane (approximately 1 mile north of Beacon Light Road). B. APPLICATION SUBMITTAL: The application was originally submitted on December, 12. Subsequent updates were made on January, 13, and on October 14, 13. Final edits to the application were provided to the City on January 16, 14, March 18, 14, and April, 14, to make the application consistent with the requirements of ECC 11A-7 as approved by the Eagle City Council on January 14, 14. C. NOTICE OF PUBLIC HEARING: Notice of Public Hearing on the application for the Eagle Planning and Zoning Commission was published in accordance with the requirements of Title 67, Chapter 6, Idaho Code and the Eagle City Code on April 28, 14. Notice of this public hearing was mailed to property owners within three-hundred feet (0-feet) of the subject property in accordance with the requirements of Title 67, Chapter 6, Idaho Code and Eagle City Code on April 28, 14. Requests for agencies reviews were transmitted on January 17, 14, in accordance with the requirements of the Eagle City Code. The site was posted on April, 14, in accordance with Eagle City Code. Notice of Public Hearing on the application for the Eagle City Council was published in accordance with the requirements of Title 67, Chapter 6, Idaho Code and the Eagle City Code on July 21, 14. Notice of this public hearing was mailed to property owners within three-hundred feet (0-feet) of the subject property in accordance with the requirements of Title 67, Chapter 6, Idaho Code and Eagle City Code on July 1, 14. The site was posted in accordance with Eagle City code on July 29, 14. Page 1 of 41

1 D. HISTORY OF PREVIOUS ACTIONS: The M3 Pre-Annexation Development Agreement (RZ-19-06), adopted by the City in November 07, (herein referred as PADA ) The Eagle City Council approved RZ-19-06 MOD1: M3 Hillside and Grading Standards on November 24, 09. M3 received a Conditional Letter of Map Revision (CLOMR) from FEMA on February 17, 09. An amendment was submitted in March of 13, and was approved by FEMA on November 8, 13. The overall project-wide Habitat Mitigation Plan was approved by the City Council on January 11, 11. The Eagle City Council approved an amended and restated development agreement for M3/Spring Valley (RZ-19-06 MOD2) on January 14, 14, (herein referred as DA ) The City council approved the M3/Spring Valley Development Standards on January 14, 14, and by the adoption of Ordinance 7, established Eagle City Code Title 11 Planned Developments, Chapter A Spring Valley. E. COMPANION APPLICATIONS: PP-06-12: Spring Valley Subdivision No. 1: A346.77 acre, 217-lot subdivision (190 residential lots, 22 common/open space lots, 3 future development parcels, 1 well site and 1 wastewater treatment plant site) pursuant to the Spring Valley Development Agreement. Page 2 of 41

F. COMPREHENSIVE PLAN LAND USE MAP AND ZONING MAP DESIGNATIONS: Existing COMP PLAN ZONING CURRENT DESIGNATION DESIGNATION LAND USE Foothills Residential R1-DA Rural Residential/Large Lot Single Family (Gulch Ranch Estates Subdivision & Kling Estates Subdivision)/ Vacant Land/ Limited Agriculture 8 acres SF1 (Single Family Residential) Spring Valley Proposed Land Use (ECC 11A-2) No Change No Change 47.4 acres ER (Estate Residential) 24.4 acres COS (Community Open Space) 24.9 acres ROS (Regional Open Space) 8.6 acres WWTP (Wastewater Treatment Plant) Spring Valley Proposed Land Use (ECC 11A-2) North of site No Change Foothills Residential No Change RR (Rural Residential - Ada County) RP (Rural Preservation - Ada County) Rural Residential/Large Lot Single Family / Vacant Land/ Limited Agriculture South of site BLM/City Regional Park PS (Public/Semi- Public) Vacant Land East of site West of site Foothills Residential Rural Residential (Ada County) RR (Rural Residential - Ada County) RP (Rural Preservation - Ada County) RR (Rural Residential - Ada County) RP (Rural Preservation - Ada County) Rural Residential/Single Family (Highlander Estates Subdivision)/ Vacant Land/ Limited Agriculture Rural Residential/Single Family (Estates Subdivision & Kling Ranch Estates Subdivision)/ Vacant Land/ Limited Agriculture G. DESIGN REVIEW: Subject to ECC 11-3 - Spring Valley Design Review Page 3 of 41

H. GENERAL PUMP DATA/DESIGN: Total Acres: 722.4 acres Developable: Future Development: Reuse/Wastewater Land Application: 232 acres in Southwest Planning Area (SWPA) 0 acres 90.4 acres 1 2 3 4 All calculations below are based on buildable portion of the PUMP: 232 Acres Residential Units in PUMP No.1: 249 units PUMP Density: 1.07 units per acre Remaining units in SWPA: 1 units Max. Density SWPA: 1.07 units per acre Open Space: 98.2 acres Regional Open Space: 19.6 acres Community Open Space: 69 acres Collectors, Arterial and Buffers: 9.6 acres % of Developable Acres: 42.3% Minimum Open Space: % (46.4 acres) Lots Adjacent to Open Space: 173 lots (91.1% of units in PUMP No. 1) All Units in SWPA: 173 units or 38.4% (0% Minimum) Lots less than 8,000 sq. ft.: No lots less than 8,000 sq. ft. Lots less than,000 sq. ft. No lots less than,000 sq. ft. Constrained Acres (pre-mitigation): Floodway: Slopes >2%: Habitat Areas of Special Concerns: Constrained Acres (post-mitigation): Floodway: Slopes >2%: Habitat Areas of Special Concerns): 7.11 acres (89.3% of site) 47.61 acres 1. acres 18 acres 61.36 acres (26.% of the site) 13.46 acres.9 acres 47 acres I. ECONOMIC ANALYSIS: The applicant provided an update to the 06 economic analysis completed by Idaho Economics, John Church, as part of the December, 12, submittal. The economic analysis is incorporated herein by reference. J. LAND USE MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Land Use Master Plan is addressed in the applicant s narrative received and date stamped by the City on January 16, 14, updated on March 19, 14, and the applicant s Planning Unit Master Plan No.1, Land Use Plan - Exhibit 6.B date stamped April, 14. K. STREETS AND CIRCULATION MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Streets and Circulation Master Plan is addressed in the applicant s narrative received and date stamped by the City on January 16, 14, and the applicant s Planning Unit Master Plan No.1, Streets and Page 4 of 41

1 2 3 Circulation Plan - Exhibit 6.D date stamped April, 14. L. WATER MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Water Facilities Master Plan is addressed in the applicant s narrative received and date stamped by the City on January 16, 14, updated on March 19, 14, by JUB Engineers. The applicant s Spring Valley Water Facilities Plan-Pump No.1 Amendment received and date stamped by the City on March 19, 14. M. WASTEWATER MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Wastewater Master Plan is addressed in the applicant s narrative received and date stamped by the City on January 16, 14, and the applicant s Wastewater Facilities Plan received and date stamped by the City on October 3, 13. The location of the 90.4 acre land application site for the effluent is identified on applicant s Planning Unit Master Plan No.1, Land Use Plan - Exhibit 6.B date stamped April, 14. N. DRAINAGE MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Drainage Master Plan is addressed in the applicant s narrative and the applicant s Planning Unit Master Plan No.1 Drainage Study received and date stamped by the City on January 16, 14. The City received a letter of approval from FEMA of the M3 CLOMR on November 18, 13. O. PRESSURIZED IRRIGATION MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Pressurized Irrigation Master Plan is addressed in the applicant s narrative and the applicant s Pressurized Irrigation Plan received and date stamped by the City on December, 12. A portion of the pressurized irrigation system is addressed in the Water Facilities Master Plan for PUMP No. 1 received on and date stamped by the City on March 19, 14. The applicant is requesting an Irrigation Master plan be provided at the time of submittal of the construction drawings for the first final plat within PUMP No.1. P. PUBLIC FACILITIES MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Public Facilities Master Plan is addressed in the applicant s narrative received and date stamped by the City on January 16, 14. There are no Public Facilities identified in PUMP No. 1. Q. PARKS, TRAILS, AND OPEN SPACE MASTER PLAN: The applicant s justification of the PUMP s compliance with the requirements of the Parks, Trail, and Open Space Master Plan is addressed in the applicant s narrative and the applicants Planning Unit Master Plan No.1, Parks, Trails, and Open Space Plan - Exhibit 6.J date stamped January 16, 14, and updated in April, 14. Page of 41

1 2 3 R. ENVIRONMENTAL DESIGN MASTER PLAN: The applicant submitted an updated Landscape Master Plan including a narrative date stamped by the City on December, 12, a Landscape Plan- Streets (Exhibit 4.B.b) received and date stamped by the City on April, 14, a Habitat Mitigation Plan (Exhibit 4.B.d) date stamped by the City on April, 14, and a Habitat Monitoring Plan date stamped by the City on November 13, 13. S. SUPER PAD/LARGE PARCEL MASTER PLAN: The applicant s justification of the PUMP s future development parcels is contained in the Land Use section of the applicant s narrative date stamped by the City on January 16, 14, and updated on April, 14 (incorporated herein by reference). T. AGENCY RESPONSES: The following agencies have responded and their correspondence is on file with the City of Eagle. Comments which appear to be of special concern are noted below: ACHD- Staff report dated April 1, 14. Central District Health Department Letter date stamped by the City on January 28, 14. Concerns about approval by DEQ and the Eagle Sewer District prior to approval of a future plat. Eagle Fire Department Letter date stamped by the City on November, 12, and February 2, 14. Eagle Sewer District- Letter date stamped by the City on February 3, 14, and March 21, 14 Farmers Union Ditch Company Letter date stamped by the City on January 22, 14. Concerns about expiration of the agreement between Farmers Union Ditch Company and M3 for crossing of the canal. Updated contract received on March 19, 14. FEMA Conditional Letter of Map Revision date stamped by the City on November 18, 13. Idaho Department of Environmental Quality- Recycled Water Permit Received on October 3, 13. Idaho Transportation Department Letter date stamped by the City on June 27, 13, and March 19, 14. Addresses access point onto State Highway 16 at Equest Lane/Pollard Lane. U. LETTERS FROM THE PUBLIC: Ken Hamilton - Date stamped by the City on March, 14. Concerns about location of wastewater treatment plant. Doris Schirmer Date stamped by the City on April 23, 14 and August 22, 14. Concerns about the sewer treatment site, the loss of equestrian theme, and existing CC&R s for Gulch Ranch Estates. Steve Purvis Date stamped by the City on August 19, 14. Concerns about conditions of approval, staff tracking, implementation and enforcement, CC&R s, timing of improvements, provision of public services, schools, and financial assurances. Mary Taylor E-mail received by the City on August 26, 14. Concerns about water availability, sewage treatment location, Site distance on SH 16 at the proposed Big Gulch Parkway. V. PROPOSED TIME SCHEDULE FOR THE DEVELOPMENT OF THE SITE: Page 6 of 41

1 2 The applicant s narrative did not specifically address the schedule for development but per Table 2 of the Spring Valley Development Agreement and the submittal of PP-06-12(Spring Valley Subdivision No. 1) the development of PUMP No. 1 is proposed to begin in 14. W. REQUIRED FINDINGS FOR A PLANNING UNIT MASTER PLAN: 11A-7-A-2 - ACTION BY PLANNING & ZONING COMMISSION: Upon making a recommendation the Commission shall specify in writing: a) The ordinances and standards used in evaluating the application; b) The facts submitted with the application and presented establishes that: i. The PUMP substantially conforms with: the PADA and subsequent amendments; Title 11A; applicable master plans approved by the City; and/or other applicable information reasonably relied on by the City necessary to uphold the intent of the PADA and this Title. ii. Streets and thoroughfares proposed are suitable and adequate to carry anticipated traffic, and increased densities, if any, will not generate traffic is such amounts as to overload the street network. iii. The proposed commercial/non-residential development is justified at the locations proposed and is consistent with the PADA. iv. The information provided from the agencies having jurisdiction over public facilities needed for the site indicate that adequate public facilities exist, or are expected to be provided, to serve any and all uses allowed within the PUMP area. The Planning Unit will be served, or is conditioned to be served, by adequate public services. c) A summary of the current status of overall Planning Area density, Open Space, Community Centers, Neighborhood Centers, re-assignment of densities, and other adjustable factors as set forth in the PADA. STAFF ANALYSIS PROVIDED WITHIN THE STAFF REPORT: A. COMPREHENSIVE PLAN PROVISIONS WHICH ARE OF SPECIAL CONCERN REGARDING THIS PROPOSAL: See the Eagle Foothills Subarea Plan and the Findings of Fact and Concisions of Law for RZ-19-06, including MOD 1 and MOD 2. These documents are incorporated herein by reference. B. DEVELOPMENT AGREEMENT CONDITIONS WHICH ARE OF SPECIAL CONCERN REGARDING THIS PROPOSAL: 3 1.2 Planned Development; 2 nd Paragraph: City hereby authorizes Developer to include in Planning Unit Master Plans the types of uses that are the same as or similar to (as reasonably determined by City s Zoning Administrator), and densities and intensities of uses equal to or less than, those set forth in this Agreement and/or Title 11A. Development of the Property may include, without limitation, the planning, design, engineering, construction, acquisition, installation, and/or provision of improvements of any sort or nature, including private infrastructure and Public Infrastructure related to development of the Property, whether located within or outside the Property. City, having exercised City's discretion in approving this Agreement, shall cooperate reasonably in administratively-processing the approval or issuance of such permits, plans, specifications, plats Page 7 of 41

and/or other development approvals of or for the Property as may be requested by Developer in order to implement the Project, and which are reasonably consistent with this Agreement. 1 2 3 4 0 1.4 Planning Concept; 2 nd Paragraph: The Project is planned for a Base Project Density of 0. units per gross acre, or 3,008 dwelling units, and 24 acres for Non-Residential Use. Through the application of the Bonus Density provisions, the Maximum Density may be increased up to 1.19 units per gross acre, not to exceed 7,160 dwelling units, and 24 acres for Non-Residential Use. In the event that any of the Non-Residential Use lands within a Planning Area are developed as residential, Developer may allocate any unused acres for Non-Residential Use to another Planning Area as provided in this section 1. In the event Additional Property is annexed the process is set forth in this section 1. Bonus Density is achieved at the time of City s approval of any PUMP as follows: 2. units for each acre of a Community Center shown on such City-approved PUMP. units for each acre of a Neighborhood Center shown on such City-approved PUMP. 1 unit for each acre of Regional Open Space shown on each City-approved PUMP and cumulatively for all prior City-approved PUMPs over and above the % Open Space minimum requirement not to exceed 1, units. 0. units for each acre of Community Open Space shown on each City-approved PUMP and cumulatively for all prior City-approved PUMPs over and above the % Open Space minimum requirement. % of the total units for a Regional Open Space funding mechanism as described further in Section 2.6(f) herein. To achieve Bonus Density in a PUMP, there must be a minimum Open Space of % in such PUMP, which Open Space shall be first calculated using Community Open Space. Bonus Density shall be re-calculated upon the submittal of each PUMP and/or plat. Spring Valley is being planned as five different Planning Areas, as set forth in Exhibit B and Exhibit(s) D, D1, D2, D3, D4 and D; the density allocation planned for each Planning Area is summarized in Table 1 below. Each Planning Area represents a unique design based upon: (i) topography; (ii) location within the Development Plan; (iii) existing and planned transportation corridors; (iv) a balance of commercial, employment and residential uses to promote trip capture within the Project; (v) a wide array of housing and employment options to create a live/work environment; (vi) regional and community Open Space; and (vii) dedication or donation of public facility sites for schools, police and fire, library, parks, public and civic uses. Within all Planning Areas a minimum of 0% of all dwelling units, and 6% of all single-family detached lots less than,000 square feet, and 0% of all single-family detached lots less than 8,000 square feet shall abut some form of Open Space. 1.6 Planning Unit Master Plan (PUMP): Each Planning Unit Master Plan shall be based on the Planning Area plans set forth in Exhibit(s) D, D1, D2, D3, D4 and D and the Conceptual Development Plan set forth in Exhibit E. The Conceptual Development Plan will be updated when necessary to reflect modifications or to refine phasing within the respective Planning Unit Master Plans. It is not necessary for Planning Unit Master Plans to encompass the same geographical area as a Planning Area. A Planning Unit Master Plan should reflect the area within the Project that the Planning Unit Developer is proposing to subdivide. The Planning Unit Master Plan may address a portion of one or more Planning Area(s) or Planning Unit(s), a complete Planning Area or Planning Unit, and/or more than one Planning Area or Planning Unit. The Planning Unit Master Plan shall be Page 8 of 41

1 2 3 4 0 filed with the Zoning Administrator for review as to completeness and compliance with the application requirements of Title 11A of Eagle City Code and this Agreement. Thereafter, the Planning Unit Master Plan shall be reviewed by the Planning & Zoning Commission for recommendation to City Council in accordance with the notice and hearing procedures of Title 11A of Eagle City Code. If the Planning Unit Master Plan is substantially in conformance with this Agreement and Title 11A of Eagle City Code, the Planning & Zoning Commission and City Council shall not unreasonably withhold approval. 1.7 Allocation; Density: This Agreement provides for a Maximum Density of 1.19 units/acre, or 7,160 dwelling units, as provided in section 1.4 of this Agreement, and a maximum of 24 acres of Non-Residential Uses within the Property. The number of dwelling units shall not exceed 7,160 dwelling units for the entire Project unless Additional Property is annexed into City and made subject to this Agreement. Developer shall also have the right to allocate residential density and/or Non- Residential Use acreage, and the Development Rights associated with such residential density and/or Non-Residential Use acreage, from Planning Area(s) or Planning Unit(s) to other Planning Area(s) or Planning Unit(s) at any time, and Developer may allocate any unused residential density or Non-Residential Use acreage originally allocated to a Planning Area or Planning Unit to another Planning Area or Planning Unit in the event that the preliminary or final platting of a Planning Area or Planning Unit results in unused residential density and/or unused Non- Residential Use acreage, provided such allocation: (i) does not exceed the Maximum Planning Area Density; (ii) does not exceed the Maximum Density for the Property; (iii) does not exceed the maximum Non-Residential Use acreage allowed for the Property; (iv) does not allow a use otherwise prohibited; or (v) cause a material change to this Agreement without prior amendment to this Agreement and compliance with the notice and hearing requirements of Title 11A of Eagle City Code. The allocation of residential density and/or Non-Residential Use acreage between Planning Areas and Planning Units is consistent with City s planning efforts to encourage planning flexibility based on physical and market conditions while protecting private property rights. Developer shall deliver notice to City that an allocation of residential density or Non- Residential Use acreage shall be made from one Planning Area or Planning Unit to another Planning Area or Planning Unit and shall provide City with a statement of the number of residential units per gross acre and/or Non-Residential Use acreage being allocated. Any such allocation shall not necessitate a formal amendment to this Agreement, but shall be retained in City s official file for the Property. 2.1 Traffic and Circulation: (a) Ada County Highway District; Idaho Transportation Department. Improvements to the ACHD and/or ITD Traffic System, as applicable, within the Project shall be provided at the direction of ACHD, ITD or some other legally-constituted entity with jurisdiction over the ACHD Traffic System and/or the ITD Traffic System. Unless City has such jurisdiction, City shall not be responsible for any approvals or access permits required or construction or maintenance costs associated with the ACHD Traffic System and/or the ITD Traffic System, within the Project. (c) ACHD Traffic System: Developer, with consultation with ACHD, will design, engineer, construct, acquire, install, permit and dedicate the ACHD Traffic System within and/or proportional to the Project s impacts in accordance with the Master Streets & Circulation Plan, Planning Unit Master Streets & Circulation Plans and the Phasing Plan and all planning and study documents of ACHD. Page 9 of 41

1 2 3 4 0 (d) ITD Traffic System: Developer, with consultation with ITD, will design, engineer, construct, acquire, install, permit and dedicate the ITD System within and/or adjacent and/or proportional to the Project s impacts in accordance with the Master Streets & Circulation Plan, Planning Unit Master Streets & Circulation Plans and Phasing Plan and all planning and study documents of ITD. City and Developer shall cooperate in pursuit of funding from or authorized by the State of Idaho for the construction of Developer s proportionate share of necessary improvements to the ITD System (which improvements may include, without limitation, interchanges, roundabouts, traffic signals, turning lanes and frontage roads) required to implement this Plan. (e) Planning Unit Master Streets & Circulation Plan: A detailed analysis of the ACHD Traffic System within the Project and the ITD Traffic System within and/or adjacent to the Project and the ultimate design and locations of streets and circulation improvements shall be consistent with the Master Streets & Circulation Plan and further defined in each Planning Unit Master Streets & Circulation Plan, which analysis shall be submitted and approved by ACHD and/or ITD, as appropriate. Each Planning Unit Master Streets & Circulation Plan shall be prepared by Developer and approved by City taking into account the Master Streets & Circulation Plan, and any amendments thereto and the recommendations of ACHD and/or ITD, as applicable. Each Planning Unit Master Streets & Circulation Plan shall address any increase or decrease in traffic volumes from other Planning Unit Master Plans and the particular Planning Unit being planned that may occur as development progresses and densities and intensities are rearranged. 2.2 Water: (a) Municipal Water Right; Monitoring Plan: Pursuant to that certain Assignment of Application and Permit dated and filed with IDWR on June 13, 11, which remains in effect and is applicable to this Agreement, Developer has conveyed to City ground water right no. 63-3273 (the Municipal Water Right ), which is to be used to provide municipal water service to the Project for all of its municipal uses, including without limitation irrigation, storage, residential, commercial, industrial, and other municipal uses. The Municipal Water Right requires ground water monitoring in accordance with its Attachment B, which is a March 17, 11 Technical Memorandum setting forth a water level/water production monitoring and reporting plan (the Monitoring Plan ). Developer has been implementing the Monitoring Plan and is responsible for all costs of implementing the Monitoring Plan until a Completed Portion is conveyed to City. As Completed Portions are conveyed to City, City shall be responsible to pay its proportionate share of the total Monitoring Plan costs, its share being calculated as follows: total Monitoring Plan costs (A); multiplied by the results of the number of connections to the Water System by a customer(s) or user(s) as defined by Eagle City Code Title 6 Chapter (B); divided by the total Project residential density of 7,160 dwelling units (C). (A x (B C)). Nothing in this Agreement, or action taken pursuant to this Agreement, shall be deemed to convey or grant any interest in the Municipal Water Right to Developer. (b) Irrigation and Related Uses: The Irrigation System shall be effluent (including reuse) or other systems used for storage, delivery and the use of treated effluent on site, any water right or entitlement associated with ditch company shares, any surface water or ground water (excluding Permit # 63-3273 or any existing or future water rights held by the City) or any additional water right or permits that may be associated with irrigation, aesthetics, amenities, or open space purposes. Connection to the water system shall be consistent with paragraph 2.2(a) of this Agreement. Developer may provide additional water rights or entitlements for use on the Project, through Developer s own system or otherwise, for irrigation, aesthetic, Page of 41

1 2 3 4 amenity and/or open space use not served by the Water System within the Project, and shall make best efforts to provide for these uses with surface water, such as Farmers Union Canal Company or Re-Use Water or existing irrigation wells on the Property that are not part of the Water System. The method of providing water for irrigation uses shall be at the discretion, and under the control, of Developer so long as an adequate system and source of supply is provided, including a source of supply consistent with Sections 2.2(a) and 2.3 below. Any irrigation system shall meet the requirements of Eagle City Code Title 11A. If Developer so requests, City will give good faith consideration to establishing a city irrigation system pursuant to Title 0, Chapter 18, Idaho Code, or otherwise, to deliver irrigation water to the Project. If City decides not to establish a city irrigation system, Developer may establish or contract with an irrigation or other special district, a canal company, or similar entity to serve the Project s irrigation needs consistent with the provisions of this Section. Nothing in this section shall limit water delivery from City to Developer at a wholesale rate during those times when such water is available under the Municipal Water Right if it is not needed to serve other municipal water needs in the Project, and Developer has not yet constructed the facilities or generated the re-use or other irrigation water necessary to serve such needs. 2.3 Wastewater Treatment and Disposal: (a) Eagle Sewer District: Sanitary sewer collection, treatment and disposal shall be provided by Sewer District or some other legally constituted public or private provider allowed to operate in City. Developer agrees to annex to Eagle Sewer District and further agrees not to seek other sewer treatment services unless or until Eagle Sewer District refuses to serve the Project. City shall not be responsible for any treatment, maintenance or costs associated with sanitary sewer collection, treatment and disposal in connection with the Project. (b) Master Wastewater Study; Master Wastewater Plan: Developer has completed the Master Wastewater Study and Master Wastewater Plan which has been submitted to Eagle Sewer District for approval. The Master Wastewater Plan, to be developed based on the Master Wastewater Study provides general locations of the major wastewater infrastructure needed to provide service for the Property. 2.4 Storm Water Drainage: (a) Ada County Highway District: Post-development storm water management includes drainage collection, diversion, detention, retention, dispersal, use and discharge, which shall be provided by ACHD or some other legally-constituted public or private provider allowed to operate in City and having jurisdiction over the Drainage System. Unless City has such jurisdiction, City shall not be responsible for any approval, construction, collection, conveyance or maintenance costs associated with the Drainage System within the Project. (b) Master Drainage Study; Master Drainage Plan: Developer shall complete the Master Drainage Plan, based on the Master Drainage Study to describe pre-development drainage characteristics of the Property and a conceptual hydrologic and hydraulic analysis of the Property s existing and proposed Drainage System. In connection with such Master Drainage Plan, Developer determined the applicable 0-year floodway elevations for the Property and shall obtain from FEMA a Conditional Letter of Map Revision ( CLOMR ) that adjusts the floodway boundaries. City shall use all good faith efforts to cooperate with Developer in connection with any of Developer s applications to FEMA to modify relevant flood maps to reflect actual conditions. 2. Public Facilities: Page 11 of 41

1 2 3 Police: City shall provide police protection services to the Property as developed on the same basis as is provided to other residents and businesses within City. Developer shall contribute 1 site (not to exceed 1 acre) for the construction of a police station in accordance with the Master Parks, Trails and Public Facilities Plan, attached as Exhibit I, which defines a general location. Police. City shall provide police protection services to the Property as developed on the same basis as is provided to other residents and businesses within City. Developer shall contribute 1 site (not to exceed 1 acre) for the construction of a police station in accordance with the Master Parks, Trails and Public Facilities Plan, attached as Exhibit I, which defines a general location. (b) Fire: Fire services are now provided to City by Eagle Fire District and Star Fire District (individually, the Fire District and collectively, the Fire Districts ). Unless City becomes the entity responsible, City shall not be obligated to provide fire services to the Property. Fire water flows shall be provided by the Water System and all fire protection infrastructure will be designed and constructed in conjunction with each Fire District and in accord with all applicable governmental regulations and adopted uniform fire codes. Hydrant locations will be determined following consideration of, without limitation, accessibility, obstructions, building proximity, driveway entrances, signs and light poles. Developer, in consultation with the Fire Districts, has developed a wildfire management plan for implementation within such Fire Districts. Unless otherwise agreed between Developer and Fire District, Developer shall contribute 1 site (not to exceed 1 acre of land per site and in addition to the fire station site combined with the police station site referenced in section 2.(a) above) for construction of the fire station in accordance with the Master Parks, Trails and Public Facilities Plan, attached as Exhibit I, which defines a general location. The final location is subject to Developer, applicable Fire District and City approval. Such fire station shall be identified in connection with the applicable Planning Unit Master Plan or portion thereof. (c) Schools: Public education is provided by the Joint School District No. 2. City shall not be obligated to provide public education service to the Property. Developer has, and shall continue to work diligently with School District to ensure that the educational needs of Property residents are met. In furtherance of meeting educational needs, Developer may participate with School District in enhancing the technology in one or more schools constructed by School District on the Property. Developer generally has identified potential school sites within the Project, as depicted on the Master Parks, Trails and Public Facilities Plan, attached as Exhibit I, to accommodate the needs of students generated as a result of the development of the Property using School District s student generation rates to determine the probable number of sites. The specific location, specific number of school sites and types of schools (i.e., elementary, middle and high schools) will be subject to approval by Developer and School District. The school sites will be shown as being dedicated to School District on an applicable Planning Unit Master Plan by Planning Unit Master Plan basis. The final number of school sites, the type of schools and their locations shall be identified in the appropriate Planning Unit Master Plan. 4 0 (d) Library and Other Municipal Services: City shall provide library and such other municipal services to the Property on the same basis as is provided to other residents and businesses within City. Developer shall offer to City up to a four-acre site (subject to actual needs and based upon an approved site plan) for donation to City, with utilities stubbed, or to be stubbed, to such site to accommodate the development of the type of library and other municipal services necessary to serve the community at a location to be mutually agreed upon between City and Developer. If mutually agreed upon between City and Developer, Page 12 of 41

1 2 3 4 0 Developer shall have the right to incorporate the space necessary to accommodate these uses into buildings built by Developer within the Property. It is planned that such site would be located within the Big Gulch Planning Area. Design of any library shall be consistent with the EASD and/or Title 11A of Eagle City Code and shall be reviewed for approval by Developer. 2.6 Parks, Trail and Open Space: (a) Master Parks, Trails and Open Space Plan: The Project will contain Open Space, totaling a gross minimum acreage of % of the Project area with an overall goal of providing % or more of the Project area as Open Space in exchange for Bonus Density described in section 1.4, above. Each Planning Area shall contain a minimum of 1% of its total gross acres as Open Space. A Master Parks, Trails and Open Space Plan for the Project is shown on Exhibit I, which depicts the intent to link neighborhoods and Planning Areas to various common areas and recreational uses. The pathways and trails will be within and through Planning Areas and may be located along Open Space corridors and near or adjacent to community streets and roads. Pathways and trails may also utilize drainage ways and dry gulches between common areas and neighborhoods or may be combined with the drainage system for the Project. The parks, trails and Open Space Plan shown on Exhibit I will be either owned by the Owners Association City, or another entity, or a combination of all three. Developer will submit to City a more detailed Master Parks, Trails and Open Space Plan concurrently with the submittal of the first Planning Unit Master Plan or portion thereof. (b) A Planning Unit Master Parks, Trails and Open Space Plan: A Planning Unit Master Parks, Trails and Open Space Plan shall be submitted as part of the Planning Unit Master Plan that generally conforms to the Master Parks, Trails and Open Space Plan and will address roadway crossings, habitat, trails within the Eagle Regional Park, ownership or intent to dedicate park facilities if known at the time of submittal. (f) Maintenance of Regional Open Space: Developer acknowledges the significance of the public Regional Open Space being created in the foothills and agrees to cooperate with City to establish an ongoing funding mechanism which is applicable to all residential and Non- Residential Use lands, homes or buildings within the North Eagle Foothills Planning Area and/or City limits. This funding mechanism shall be solely for the Regional Open Space associated with this Project and identified in Exhibit I of this Agreement. The funding mechanism requirement shall be met when Developer provides for funding of maintenance of Regional Open Space through an Owners Association s CC&Rs and such funding mechanism is an obligation of all owners governed by such CC&Rs to fund the maintenance of Regional Open Space within that area of Spring Valley governed by such CC&Rs. In no event does the Density Bonus provision, in section 1.4 of this Agreement, apply until the funding mechanism is established by Developer in accordance with this Agreement. 2.7 Planning Unit Master Environmental Design Plan:. (a) Landscape; Signage; Lighting: All development of the Property shall comply with the landscape, signage and lighting standards of Eagle City Code Title 11A. (b) Habitat Mitigation Plan: A Habitat Mitigation Plan that addresses development within Constrained Lands, as generally identified on Exhibit J as Habitat Areas of Special Concern, has been prepared by Developer in cooperation with City. The City-approved Habitat Mitigation Plan, attached hereto as Exhibit N, identifies areas where Mitigation is required, the type of Mitigation actions, if any, required, and the rationale for such actions. City and Developer may coordinate, cooperate, and consult with other agencies in the application of Page 13 of 41

1 2 the Habitat Mitigation Plan, but approval authority for the application of the Habitat Mitigation Plan shall rest solely with City based on standards commensurate with such Habitat Mitigation Plan(s) and based on findings that demonstrate a rational nexus Nothing in the Habitat Mitigation Plan may be construed as either incorporating state and/or federal standards and/or regulations that are not applicable to the Property or otherwise conferring any approval authority for the Habitat Mitigation Plan to any state or federal agency. Implementation and compliance with the Habitat Mitigation Plan shall be on a Planning Unit by Planning Unit basis. A PUMP shall not be approved if development is proposed and compliance with the Habitat Mitigation Plan has not been approved or conditionally approved in accordance with Eagle City Code Title 11A. 3.1 Regulation of Development: (a) Applicable Rules: The ordinances, rules, regulations, permit requirements, development fees, other infrastructure fees, exactions, other requirements, and/or official policies however denominated, applicable to and governing the development of the Property shall be those that are existing and in force as of the Date of Application, as may be mutually amended by amendment to this Agreement; provided, however, notwithstanding anything to the contrary herein, Titles 8 and 9 of Eagle City Code are not applicable to Spring Valley and have been replaced by Title 11A of Eagle City Code. 3.2 Amendments: 2 nd Paragraph: No moratorium, future ordinance, resolution or other land use rule or regulation imposing a limitation on the development or the rate, timing or sequencing of the development, of the Property or any portion thereof shall apply to or govern the development of the Property whether affecting land use permits, subdivision plats, building permits, occupancy permits or other entitlements to use issued or granted by City, except as otherwise provided in this Agreement. Nothing in this section shall prohibit City from withholding the issuance of Certificates of Occupancy for a structure to be occupied if the Public Infrastructure improvements set forth in this Agreement and Planning Unit Master Plans required to serve the applicable portion of the Property on which a structure to be occupied is to be located are not in place prior to occupation of such structure. C. PLANNED DEVELOPMENTS ORDINANCE PROVISIONS WHICH ARE OF SPECIAL CONCERN REGARDING THIS PROPOSAL: 3 11A-7-1: PURPOSE, GOALS, AND OBJECTIVES: A. The purpose of the Planning Unit Master Plan is to ensure that the land uses and densities prescribe for development are consistent with the PADA and this Title 11A prior to subdivision; B. A Planning Unit Master Plan should reflect an area within Spring Valley that the Planning Unit developer is proposing to subdivide in the future; C. The Planning Unit Master Plan may address a portion of a Planning Area, a complete Planning Area, or more than one Planning Area. 11A-7-2: PUMP COMPLIANCE WITH PADA: 4 The PUMP process is intended to demonstrate substantial conformance with the land use and infrastructure requirements found within the PADA. The PUMP does not provide or constitute approval(s) to construct or develop the site. Page 14 of 41

An application for approval of a PUMP may be filed by a property owner or a person having an existing interest in the property to be included in the PUMP. 1 2 3 11A-7-3: OWNERSHIP REQUIREMENTS: The PUMP application shall be filed in the name or names of the recorded owner or owners of property included in the development. However, the application may be filed by the holder(s) of an equitable interest in such property. Documentation showing the approval by the Master Developer shall be presented at the time of application submittal. 11A-7-4: PLANNING UNIT MASTER PLAN (PUMP) APPLICATION REQUIREMENTS A. A PUMP shall be prepared for each Planning Area as defined in the PADA, or a portion of a Planning Area, detailing substantial conformance with Exhibits D, D1, D2, D3, D4, D and E of the PADA which includes but is not limited to the general location and size of development parcels; uses and density ranges for each parcel compared to the maximum allowed density and units with the planning area; circulation system by road classification and the use of private roads; backbone water, wastewater, drainage and irrigation facilities; locations for public facilities; amenities, trails and acres of open space and habitat area; and landscape character. A PUMP application shall be submitted to the Administrator for review and approval by the City. The applicant shall meet with the Administrator prior to the submission of the PUMP. The purpose of this meeting is to discuss informally the proposed PUMP and to inform the applicant of the applicable regulations. B. The Zoning Administrator shall refer the PUMP application to as many governmental agencies as deemed necessary. The Zoning Administrator shall provide that any transmittal will be returned within fifteen (1) days. Such agencies may include the following: 1. Other governing bodies having joint jurisdiction; 2. The appropriate utility companies, irrigation companies or districts and drainage districts; 3. The superintendent of the school district; and 4. Other agencies having an interest in the proposed subdivision. C. A PUMP application shall include the following information, on forms or in a format deemed appropriate by the Zoning Administrator: 2. Project Narrative 4 a) Name, address, phone number and email address of the applicant, engineer and/or planner. b) Proof of ownership and, if appropriate, identification of the contract-purchaser along with vesting deed, current Title insurance policy or commitment and legal description. If the PUMP application is submitted by an applicant other than the Page 1 of 41

1 2 Master Developer, a letter from the Master Developer approving the submission of the application. c) A submittal letter including a brief description of the project that also briefly describes a history of previous project applications. d) Description of how the PUMP is consistent with the existing and planned uses outlined in the PADA and the Spring Valley Master Plan. If the PUMP is not in substantial conformance with any component of the Spring Valley Master Plan, an amendment of the nonconforming component of the Master Plan shall be submitted contemporaneously with the PUMP application. e) A tabulation of proposed residential units and non-residential acres in the Planning Unit compared to the number of units and non-residential acres allowed in the Spring Valley Master Plan and the applicable Planning Area in which the PUMP is located, including cumulative totals approved in connection with previous PUMPs. Such tabulation shall show the trend toward achieving the Planning Area requirement that fifty percent (0%) of all dwelling units in the Planning Area, sixty-five percent (6%) of all single-family detached lots less than five thousand (,000) square feet in the Planning Area, and fifty percent (0%) of all single-family detached lots less than eight thousand (8,000) square feet in the Planning Area, will abut some form of Open Space. f) A tabulation of the constrained (pre-mitigation) and unconstrained (postmitigation) acreage for the PUMP and the Planning Area. g) A vicinity map at a scale approved by the Administrator showing the relationship of the PUMP to the Spring Valley Master Plan and Eagle Comprehensive Plan. 3. Economic Impact Analysis An Economic Impact Analysis & Demographic Forecast, dated October 2, 06, and revised July 07, by Idaho Economics was provided to the City in connection with the 07 approval of Spring Valley. An update to the Economic Impact Analysis shall be provided to City in connection with the first Planning Unit Master Plan application. Thereafter, an update to the Economic Impact Analysis shall only be required with a PUMP application if a substantial change is proposed for the Spring Valley Master Plan such as an increase in the maximum density in Spring Valley. 3 4. Planning Unit Master Land Use Plan A land use plan on a minimum sheet size of 11 x 17 but not greater than 24 x 36 at a scale appropriate to the sheet and legible enough to read all details and containing the following: 4 a) The Title block should be located in the lower right hand corner along with the date of preparation, owner s name, address and phone number, and the name, address and phone number of the person(s) or firm(s) preparing the land use plan. b) The name of the proposed Planning Unit. c) North arrow and the scale of the drawing. d) Location and acreage for each development parcel within the Planning Unit. Land use districts will be identified with different colors. Superpads/large parcels may be identified on the land use plan. Page 16 of 41

1 2 3 e) A summary table describing the land use, number of acres and/or units for each development parcel. f) Existing and proposed arterial and collector streets. g) Topography at 2-foot or other appropriate intervals referenced to a U.S.G.S. standard. This information could be shown on a separate exhibit. h) Existing topographic characteristics showing slopes over 2% and the location and acres for development to be graded pursuant to the Grading Guidelines and Hillside Development Standards. This information may be shown on a separate exhibit and may be combined with the submittal listed immediately above.. Planning Unit Master Streets & Circulation Plan a) A plan showing the arterial and collector roadway network. b) A streets and circulation phasing plan. c) A traffic impact study (TIS) of the ACHD traffic system within the PUMP and ITD traffic system adjacent to the PUMP for compliance with the Master Traffic Study and the ACHD Northwest Foothills Transportation Study will be provided to ACHD and/or ITD. Such TIS may be submitted prior to the rest of the PUMP application. d) A narrative or evidence showing how this component of the PUMP complies with the Spring Valley Master Streets & Circulation Plan with reference to traffic volumes associated with previously approved PUMP(s). The narrative shall include a description of the location of private roads and the number of residential units served by such private roads. 6. Planning Unit Master Potable Water Plan a) An updated Spring Valley Water Facility Plan will be provided if the PUMP application requires modifications to the existing Spring Valley Water Facility Plan. If the municipal transmission potable water system complies with the existing Spring Valley Water Facility Plan, an update is not necessary. b) A plan showing the location and size of municipal transmission potable water system components, including both on- and off-site (that is, outside of the Planning Unit) municipal water mains (that is, not service lines), municipal wells, pump stations, pressure reducing stations and storage facilities needed to serve the Planning Unit. c) A phasing plan for the construction of the necessary municipal transmission potable water system. d) A narrative or evidence showing how this component of the PUMP complies with the Spring Valley Master Water Facility Plan and the Spring Valley RAFN water right. 7. Planning Unit Master Wastewater Plan a) A plan showing the location, size, type and capacity of the backbone wastewater collection, transmission and treatment system components, including effluent and/or re-use storage, transmission and/or disposal facilities needed to serve the Planning Unit. Page 17 of 41