SUBDIVISION PUBLIC REPORT FOR RANCHO PALO VERDE ESTATES PHASE 3 and 4 aka RANCHO PALO VERDE ESTATES Registration No.DM00-022909 SUBDIVIDER CASA GRANDE DEVELOPMENT L.L.C. d/b/a REPUBLIC HOMES L.L.C. 1845 SOUTH DOBSON ROAD #101 MESA, ARIZONA 85202 June 8, 2001 Effective Date DISCLAIMER This report is NOT A RECOMMENDATION NOR AN ENDORSEMENT by the State of Arizona of this land. The application and public report have not been subjected to a detailed examination by the Department. The report was prepared by the subdivider and none of the information in this report has been verified by the Department; all the information has been accepted by the Department as true and accurate based on attestation of the subdivider/or the subdivider s agents. The purchaser should verify all facts before signing any documents. The Department assumes no responsibility for the quality or quantity of any improvement in this development. ARIZONA DEPARTMENT OF REAL ESTATE PHOENIX OFFICE: TUCSON OFFICE: 2910 N. 44 th Street 400 West Congress First Floor Suite 523 Phoenix, Arizona 85018 Tucson, Arizona 85701 (602) 468-1414 ext. 400 (520) 628-6940 1
THE ARIZONA DEPARTMENT OF REAL ESTATE 1. You BE GIVEN this public report; REQUIRES THAT: 2. YOU SIGN A RECEIPT indicating that you received this report; RECOMMENDS: 1. You DO NOT SIGN ANY AGREEMENT before you have read this report; 2. You see the EXACT PROPERTY you are interested in BEFORE SIGNING any document for lease or purchase. ARIZONA LAW STATES: 1. THE SALE OR LEASE OF SUBDIVIDED LANDS PRIOR TO ISSUANCE OF THIS REPORT OR FAILURE TO DELIVER THIS REPORT TO YOU SHALL RENDER THE SALE OR LEASE RESCINDABLE BY YOU. ACTION TO RESCIND MUST BE BROUGHT WITHIN 3 YEARS FROM DATE OF EXECUTION OF PURCHASE AGREEMENT. 2. CONTRACTS OR AGREEMENTS FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* MAY BE RESCINDED BY YOU WITHOUT CAUSE BY SENDING OR DELIVERING WRITTEN NOTICE OF RESCISSION BY MIDNIGHT OF THE SEVENTH CALENDAR DAY FOLLOWING THE SIGNING. 3. IF YOU HAVE SIGNED A PURCHASE AGREEMENT FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* PRIOR TO INSPECTING THE LOT, YOU HAVE SIX MONTHS TO INSPECT AND UPON INSPECTION MAY RESCIND THE PURCHASE AGREEMENT. *A contract or agreement for purchase of a lot that includes a building or obligates the seller to complete construction of a building within two years from the contract date does not constitute the purchase of an unimproved lot. Therefore, if your purchase includes a lot and a building or a building to be built, you are not entitled to the rescission rights described in paragraphs 2 and 3. 2
GENERAL This report includes: Phase 3, Lots 37 through 86, Tracts C and D; Phase 4, Lots 87 through 108, Tracts E and G. The map of this subdivision: for Phase 3 is recorded in Cabinet C, slide 188, and Phase 4 is recorded in Cabinet C, slide 189 records of Pinal County, State of Arizona. The subdivision in Phase 3 is approximately 10.719 acres in size, and phase 4 is 3.967 acres in size. It has been divided into 72 Lots and 4 Tracts. Lot boundaries will be staked at lot corners and radii. YOU ARE ADVISED TO OBTAIN A COPY OF THE RECORDED MAP AND CORRECTION DOCUMENTS, IF ANY, AND NOTE ALL EASEMENTS, RESTRICTIONS AND STATEMENTS CONTAINED THEREIN. SUBDIVISION LOCATION Location: Casa Grande Avenue, to subdivision, Casa Grande, Pinal County, Arizona. Topography: Loose soil SUBDIVISION CHARACTERISTICS Flooding and Drainage: In her letter dated July 20, 1999, Cindy Lester, Chief, Arizona Section Regulatory Branch, states: "Reference is made to you of June 29, 1999 in which you inquired as to whether or not a section 404 permit is required form the U.S. Army Corps of Engineers to develop the Rancho Palo Verde Estates Subdivision at the Southwest corner Kadota Road and Korsten Road at (Section17, T6E), Casa Grande, Pinal County, Arizona. Based on the information furnished in your letter (referenced above), we have determined that you proposed project is not subject to our jurisdiction under Section 404 of the Clean Water Act. Since there are no water of the United States within the aforementioned proposed project area, no Section 404 permits required from our office. Per Flood Letter from engineer, A. Gary Hoodzow with Sage Engineering Corporation: This firm is the engineer-of-record for the referenced subdivision (Rancho Palo Verde Estates), and produced the construction plans of their improvements and their Final Plats. They have been designed to comply with the standards and criteria of the controlling governmental agencies. The improvement plans for the subject subdivisions have been 3
approved by those agencies, and their Final Plats have been formally recorded. With respect to storm drainage considerations, we wish to provide you with the following data: 1. The subject property is not located within any governmentally mapped floodway or floodplain that would require the provision of Federal Flood Insurance; 2. Finished floor elevations are designed to be at least fourteen inches (14") above the grade of the "outfall point" of their respective lots and are above the elevation of the sheet-flow water surface generated by a 100 year storm; 3. Building pad elevations are designed to be at least six inches (6") above the grade of the "outfall point" of their respective lots and are above the elevation of the sheet flow water surface generated by 50 year frequency storm; 4. Public streets have been designed to contain, within their right-of-way, flow generated by a 10 year frequency storm; We hereby certify that the subject project has been designed to be free from flood hazard, as that term is commonly and currently defined by the regulators of Residential subdivisions procedures. Soils: Subdivider/Applicant advises that the subdivision is not subject to subsidence or expansive soils. Adjacent Lands and Vicinity: Existing church to the Northwest of subdivision; South and East are Single Family Residential (R-1); North is vacant land zoned (Urban Rural); and West is vacant zoned R-1 (Single Family Residential). North of the Subdivision is farm land zoned Urban Rural. There is a potential risk of possible dust related cultivation pesticide sprays. AIRPORTS Military Airport: Subdivider/Applicant advises that no portion of the development is located in the territory in the vicinity of military airport. Airport: Casa Grande Municipal Airport, approximately 4 miles from subdivision. NOTE: Subdivider/Applicant advises that portion of the development is located in the territory in the vicinity of a public airport as defined in A.R.S. 28-8486. 4
UTILITIES Electricity: Arizona Public Service (APS), (602) 371-7171, 400 North 5th Street, Phoenix, Arizona 85004. Subdivider/Applicant advises completion to facilities for Phase 3, and Phase 4, June 30, 2002. Costs to Lot Purchasers, $25.00 Service Establishment fee, plus tax; $200.00 deposit. Street Lights: Subdivider/Applicant advises that completion of street lights for Phase 3 Phase 4, will be completed June 30, 2002. Costs for maintenance are included in property taxes. Telephone: Qwest, 1 (800) 244-1111, 20 East Thomas Road, Phoenix Arizona 85012. Subdivider/Applicant advises completion to facilities for Phase 3 and Phase 4 by, June 30, 2002. Costs to Lot Purchasers, $46.50 per line hook-up fee; $53.30 per line zone connection fee plus additional charges for extra features; $100.00 deposit. NOTE: IT IS POSSIBLE THAT YOU MAY NOT HAVE TELEPHONE SERVICE AT THE TIME OF CLOSING. PURCHASER IS ADVISED TO CONTACT THEIR SERVICE PROVIDER TO DETERMINE THE STATUS OF TELEPHONE SERVICE. YOU MAY ALSO WANT TO CONSIDER TEMPORARY ALTERNATIVES, IE. A CELLULAR PHONE. Natural Gas: Southwest Gas, (480) 421-0734, 10851 North Black Canyon Highway, Phoenix, Arizona. Subdivider/Applicant advises completion to facilities for Phase 3 and 4, by June 30, 2002. Costs to Lot Purchasers, $30.00 Service Establishment fee; $50.00 deposit. Water: Arizona Water Company, (480) 982-2201, 2380 West Southern Avenue, Apache Junction, Arizona 85220. Subdivider/Applicant advises completion to facilities for Phase 3 and 4, by June 30, 2002. Costs to Lot Purchasers, $16.00 Service Establishment fee; $12.43 monthly fee. Note: Landscaping water is governed and administered by the Arrowhead Ranch Effluent Water System which is governed and administered by the City of Glendale and Arrowhead Ranch Amenities. Sewage Disposal: City of Casa Grande, (520) 421-8600. Costs to Lot Purchasers, $25.00 Service Establishment fee; $8.85 monthly fee; $66.00 deposit. NOTE: (A) If construction of sanitary facilities and submittal of "as-built" plans and construction documentation to ADEQ by the subdivider is not completed by August 31, 2002 this Certificate of Approval of Sanitary Facilities for subdivision is void pursuant to Arizona Administrative Code R18-4-505.E. and/or R18-9-804.F. (B) No "discharge" to the "waters of the United States" pursuant to Sections 301,309,402,404, and 502 of the Federal Clean Water Act (CWA) are 5
authorized by this approval. If this project results in discharge to these water, CWA permits are necessary before commencing discharge, pursuant to the Code of Federal Regulations Titles 33 and/or 40. Any construction in a watercourse shall comply with all terms and conditions of the Section 404 permit program which is administered by the U.S Army Corps of Engineers. THE ABOVE COSTS ARE SUBJECT TO CHANGE BY SERVICE PROVIDERS. YOU SHOULD CONTACT THE ABOVE PROVIDERS REGARDING EXTENSION RULES AND REGULATIONS, SERVICE CONNECTIONS AND COSTS INVOLVED. STREETS, ROADS AND DRAINAGE Access to the Subdivision: Via Asphalt paved public streets to completed by the Subdivider/Applicant for Phase 3 and Phase 4 by June 30, 2002. Streets are to be maintained by the City of Casa Grande with costs to Lot Purchasers included in property taxes. Access within the Subdivision: Via asphalt, paved public streets to be completed by the Subdivider/Applicant for Phase 3 and Phase 4 by June 30, 2002. To be maintained by the City of Casa Grande with costs to Lot Purchasers included in property taxes. Flood and Drainage: Drainage tracts and retention basins to be completed by the Subdivider/Applicant for Phase 3 and Phase 4 by June 30, 2002. To be maintained by the Rancho Palo Verde Estates Home Owners Association, Inc. with costs to Lot Purchasers included in the Home Owners Association assessments. COMMON, COMMUNITY AND RECREATIONAL FACILITIES Within the Subdivision: Common areas, landscaping areas and retention basins. Within the Master Planned Community: Subdivider/Applicant advises that this is not a Master Planned Community. ASSURANCES FOR COMPLETION Assurances for Completion of Subdivision Facilities: No escrow to close until the City of Casa Grande issues its occupancy clearance. Phase 3 and 4 are financially assured by a Performance Bonds. Assurances for Maintenance of Subdivision Facilities: Recorded Covenants, Conditions and Restrictions, Easements and zoning regulations. 6
LOCAL SERVICES AND FACILITIES Schools: Cottonwood Elementary is located approximately 1 mile from the subdivision. A new Junior High (currently unnamed) is being built approximately 1 mile from subdivision. Current Junior High is Casa Grande, approximately 4 miles from subdivision and Casa Grand Union High School, approximately 2.5 miles from subdivision. SCHOOL ASSIGNMENTS AREA SUBJECT TO CHANGE. PROSPECTIVE PURCHASERS SHOULD CONTACT SCHOOL DISTRICT FOR VERIFICATION OF SCHOOLS. SCHOOL FACILITIES AND BUS SERVICE MAY CHANGE. YOU SHOULD CONTACT THE LOCAL SCHOOL BOARD REGARDING THE CURRENT LOCATION OF SCHOOLS AND BUS SERVICE. Shopping Facilities: Bashas Shopping Center is located approximately 4.5 miles from subdivision. A new Safeway Shopping Center is being built approximately 1.5 miles from subdivision. Public Transportation: Subdivider/Applicant advises that there is no public transportation is available to this subdivision at this time. Medical Facilities: Casa Grande Regional Hospital is located approximately 6 miles from subdivision. Fire Protection: Provided by the City of Casa Grande Fire Department with costs to Lot Purchasers included in the property taxes. Ambulance Service: Available by dialing 911. Police Services: Provided by the City of Casa Grande Police Department with costs to Lot Purchasers included in the property taxes. Garbage Services: City of Casa Grande, (480) 421-8600, with costs to Lot Purchasers, of $7.76 per month. LOCATIONS AND COSTS OF THE ABOVE SERVICES AND FACILITIES MAY CHANGE. YOU SHOULD VERIFY THEIR CURRENT LOCATIONS AND COSTS PRIOR TO PURCHASE. 7
SUBDIVISION USE AND RESTRICTIONS Use: This offering is for Lot with Dwelling. Zoning: Single Family Residential. Conditions, Reservations and Restrictions: As stated in the recorded Declaration of Condominium and stated in the Articles of Incorporation and Bylaws of Community Association, and zoning regulations for the City of Casa Grande. Restrictions and Other Matters of Record: Conditions, Reservations and Restrictions that may run with the land including City or County zoning restrictions should be investigated by you. Copies of those items which are recorded may be inspected at the Office of the Pinal County Recorder. Information about zoning may be obtained at the Office of the City of Casa Grande Planning and Zoning Department. Restrictions are recorded as cited in the following title exceptions and per the subdivision plat. TITLE Title to this subdivision is vested in Casa Grande Development, L.L.C., an Arizona Limited Liability Company. Subdivider s interest in this subdivision is evidenced by Fee Simple Title. Title is subject, among other things, to all taxes, assessments, covenants, conditions, restrictions, limitations, reservations, rights, obligations, powers, easements, rights of way, liens, and charges of record. YOU SHOULD INVESTIGATE THE TITLE AND SATISFY YOURSELF AS TO WHAT EFFECT IF ANY THESE MATTERS MAY HAVE ON THE USE OF THE LAND. Title exceptions affecting the condition of title are listed in the Preliminary Title Report dated February 5, 2001 issued by Capital Title Agency Inc., You should obtain a title report and determine the effect of the listed exceptions. EXCEPTIONS: SEE EXHIBIT A ATTACHED METHOD OF SALE OR LEASE Sales: Your vested interest/ownership interest in the property will be evidenced by the Subdivider/Applicant delivering a recorded Deed to you and by signing a promissory Note or Deed of Trust for any unpaid balance, if any. YOU SHOULD READ THESE DOCUMENTS BEFORE SIGNING THEM. Cash sales are permitted. Purchaser's deposits and earnest monies will be deposited into a neutral escrow account. NOTE: Prospective purchasers are advised the earnest money deposits, down payments, and other advanced monies will not be held till close in a neutral escrow account. The money will be paid to the Seller upon the building permit application 8
commencing as per clause in purchase contract. This means the purchasers assumes a risk of losing the money if the seller is unable or unwilling to perform under the terms of the purchase contract. Release of Liens and Encumbrances: Lot release provisions provided by First Security Bank, N.A. Use of Occupancy: Upon close of escrow and recordation of deed. Leasehold Offering: Subdivider/Applicant advises no leasehold offerings. THE PURCHASE CONTRACT IS A BINDING AGREEMENT. CONTRARY TO THE TERMS AND PROVISIONS OF THE CONTRACT, YOU MAY HAVE ADDITIONAL RIGHTS, REMEDIES AND WARRANTIES PROVIDED BY LAW. READ THOROUGHLY BEFORE SIGNING. IF NOT UNDERSTOOD, SEEK COMPETENT ADVICE PRIOR TO COMMITMENT TO PURCHASE. TAXES AND ASSESSMENTS Real Property Taxes: The combined primary and secondary property tax rate for this subdivision for the year 2000 is $16.62 per $100.00 assessed valuation. The estimated property tax for an improved lot (lot with dwelling), based on the above tax rate and average sales price of $130,000.00-150,000.00 is $1,725.48-1,994.40. Special District Tax or Assessment: At present, there are no special district taxes or assessments formed or proposed for this subdivision. AMOUNT OF TAXES AND ASSESSMENTS SET FORTH ABOVE ARE APPROXIMATE ONLY AND SUBJECT TO CHANGE. PROPERTY OWNERS ASSOCIATIONS Name and Assessments: Rancho Palo Verde Estates Home Owners Association, Inc. with annual assessments of$120.00 charged to Lot Purchasers. Control of Association: Class B membership shall cease and be converted to Class A membership on the earlier of: (i) Ninety (90) days following the date on which the votes entitled to be cast by the Class A Members equals or exceeds the votes entitled to be cast by the Class B Member; (ii) the date which is five (5) years after the Recording of this Declaration; or (iii) when the Declarant notifies the Association in writing that it relinquishes its Class B membership. Title to Common Areas: Declarant shall convey common areas free and clear upon the first lot closing. Membership: All lot owners will be members of the Association. 9
PAYMENTS TO PROPERTY OWNERS ASSOCIATIONS ARE SUBJECT TO CHANGE IN ACCORDANCE WITH RECORDED RESTRICTIONS. SAID ASSOCIATION MAY ALSO IMPOSE SPECIAL ASSESSMENTS. YOU ARE ADVISED TO READ THE RECORDED (COVENANTS, CONDITION AND RESTRICTIONS, ARTICLES OF INCORPORATION, DECLARATION OF CONDOMINIUM, BYLAWS) FOR THIS SUBDIVISION TO DETERMINE THE RIGHTS OF LOT/OWNERS TO PARTICIPATE IN THE CONTROL OF THE PROPERTY OWNERS' ASSOCIATION AND TO DETERMINE THE RIGHTS, DUTIES AND LIMITATIONS OF OWNERS IN AND TO USE OF THEIR LOTS. FURTHER, YOU SHOULD DETERMINE FOR YOURSELF IS SUBDIVIDER'S ARRANGEMENTS AND PLANS FOR THE PAYMENT OF ASSESSMENTS ON UNSOLD LOTS WILL BE SUFFICIENT TO FULFILL THE NEEDS, DEMANDS AND FINANCIAL OBLIGATIONS OF THE ASSOCIATION, AS SET FORTH IN THE DECLARATION AND BYLAWS. 10
EXHIBIT A 1. Taxes for the year 2000 2. Reservations contained in Patent reading as follows: "Subject to any vested and accrued water rights for mining, agricultural, manufacturing or other purposes and rights to ditches and reservoirs used in connection with such water rights as may be recognized and acknowledged by the local customs, laws, and decisions of Courts, and there is reserved from the lands hereby granted, a right-of-way thereon for ditches or canals constructed by the authority of the United States." 3. Liabilities and obligations existing or which may arise against the said land by reason of its inclusion with CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT, as disclosed by instruments recorded in Fee No. 1999-041680 and Fee No. 1999-041681. 4. Liabilities and obligations existing or which may arise against the said land by reason of its inclusion within RANCHO PALO VERDE ESTATES HOMEOWNERS ASSOCIATION. 5. Water right, claims or title to water, whether or not the matters excepted are shown by the public records. 6. Easements as shown on the recorded Plats of said Subdivisions. 7. Agreement according to the terms and conditions contained therein: Purpose: Assured Water Supply/Groundwater Replenishment District. Dated: September 13, 1999 First Party: CENTRAL ARIZONA WATER CONSERVATION DISTRICT, a political subdivision of the State of Arizona Second Party: CASA GRANDE DEVELOPMENT, L.L.C., an Arizona Limited Liability Company Third Party: ARIZONA WATER COMPANY, an Arizona Corporation, recorded in Fee No. 1999-041680 8. All matters contained in Covenants, Conditions, Restrictions, for RANCHO PALO VERDE ESTATES, regarding membership in the Central Arizona Groundwater Replenishment District, as set forth in instrument recorded in Fee No. 1999-041681 but deleting any covenants, conditions or restrictions indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c). 11
9. A Deed of Trust executed by CASA GRANDE DEVELOPMENT L.L.C., an Arizona Limited Liability Company, as Trustors to FIRST SECURITY BANK, N.A., as Beneficiary, and OLD REPUBLIC TITLE INSURANCE AGENCY, INC., as Trustee, dated May 18, 1999, recorded June 2, 1999, in Fee No. 1999-225240; TO SECURE: $ 1,270,000.00, and other amounts payable thereunder. (Covers more property). 10. A Deed of Trust executed by CASA GRANDE DEVELOPMENT, L.L.C., an Arizona Limited Liability Company, as Trustor, to FIRST SECURITY BANK, N.A. as Beneficiary, and OLD REPUBLIC TITLE INSURANCE AGENCY, INC., as Trustee, dated September 27, 1999, recorded, October 7, 1999, in Fee No. 1999-045228, and thereafter re-recorded October 22, 1999 in Fee No. 1999-047633; TO SECURE: $1,000,000.00 and other amounts payable thereunder. (Covers More Property) 11. All Mater contained in Covenants, Conditions, Restrictions, Liens and Charges as set forth in instrument recorded in Fee No. 2000-003929, but deleting any covenants, conditions, or restrictions indicating a preference, limitation or discrimination based on race, covenants, conditions or restrictions violate 42 USC 3604 (c). 12. Permanent Access to this subdivision is defined and required by ARS 32-2101 (19) and 32-2185.02 is Via Korsten Road to Casa Grande Avenue. NOTE: There are no further matters of record concerning this Subdivision through the date of this report. 12