DISTRICT ASSESSMENT ENGINEER'S REPORT

THE SOUTH LOS A,...ELES INDUSTRIAL TRACT BUSINESS lmphjvement DlSTRICT THE SOUTH Los ANGELES INDUSTRIAL TRACT BUSINESS IMPROVEMENT Formed pursuant to the City of Los Angeles' Landscaping, Security, Programming and Maintenance Property Business Improvement District (LSPM PBID) Ordinance (Division 6, Chapter 9, Los Angeles Administrative Code) ASSESSMENT ENGINEER'S REPORT APPENDIXB Prepared by Edward V Henning, California Registered Professional Engineer # 26549 Edward Henning & Associates June 2010

THE SOUTH LOS A -ieles INDUSTRIAL TRACT BUSINESS IMP._..JVEMENT ASSESSMENT ENGINEER'S REPORT To Whom ItMay Concern: T hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed South Los Angeles Industrial Tract Business Improvement District ("South LA Industrial Tract BID") being renewed for 5 years will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property. Prepared by Edward V. Henning, California Professional Engineer #26549 RPE #26549 June 17,2010 (NOT VALID VVITHOUT SIGNATURE AN TIFICATION SEAL HERE) Introduction This report serves as the "detailed engineer's report" required by Section 4(b) of Article XmD of the California Constitution (Proposition 218) to support the benefit property assessments proposed to be levied within the South LA Industrial Tract BID in the City of Los Angeles, California being renewed for a 5 year period. The discussion and analysis contained within constitutes the required "nexus" of rationale between assessment amounts levied and special benefits derived by properties within the South LA Industrial Tract BID. NOTE: The terminology "identified benefiting parcel" or "property" is used throughout this report pursuant to SB 919 - "Proposition 218 Omnibus Implementation Act" wbich clarified portions of Prop 218. It provides the Engineer and District Consultant with the ability to actually identify individual parcels which will specially benefit directly either in whole OJ" in part from the proposed District funded programs and improvements and does not imply that all parcels receive assessable benefits. RECEIVED SEP -2 2010 AUMIN.SVCS

THE SOUTH LOS Ar.GELES.lNDUSTIUALTRACT BUSINESS mit hjvement Background TIle South LA Industrial Tract BID is a property-based benefit assessment type district being established pursuant to the City of Los Angeles' Landscaping, Security, Programming and Maintenance Property Business Improvement District (LSPM PBID) Ordinance (Division 6, Chapter 9, Los Angeles Administrative Code) ("the Code") which was fashioned in part from Section 36600 et seq. of the California Streets and Highways Code, also known as the Property and Business Improvement District Law of 1994 (the" Act"). Due to the benefit assessment nature of assessments levied within a BID, district program costs are to be distributed amongst all identified benefiting properties based on the proportional amount of program benefit each property is expected to derive from the assessments collected. Within the Code and the Act, frequent references are made to the concept of relative "benefit" received from BID programs and activities versus amount of assessment paid. Only those properties expected to derive special benefits from BID funded programs and activities may be assessed and only in an amount proportional to the relative benefits expected to be received. The method used to determine special benefits derived by each identified property within a BID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the South LA Industrial Tract BID, the benefit unit may be measured in linear feet of primary street frontage or parcel size in square feet or building size in square feet or number of building floors or proximity to major corridors in average linear feet, or any combination of these factors. Quantity takeoffs for each parcel are then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by the BID in order to determine any levels of diminished benefit which may apply on a parcel-by-parcel or categorical basis. Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the assessment formula, different factors may be assigned different "weights" or percentage of values based on their relationship to programs/services to be funded. Next, all program and activity costs, including incidental costs, District administration and ancillary program costs, are estimated. It is noted, as stipulated in Proposition 218, and now required of all property based assessment Districts, indirect or general benefits may not be incorporated into the assessment formula and levied on the District properties; only direct or "special" benefits and costs may be considered. Indirect or general benefit costs, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a "net" cost figure. In addition, Proposition 218 no longer automatically exempts government owned property from being assessed and if special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. 2

THE SOUTH LOS Al\...,.ELES Th'DUSTRIAL TRACT BUSINESS IMPhvVEMENT From this, the value of a basic benefit unit or "basic net unit cost" can be computed by dividing the total amount of estimated net program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as "spreading the assessment" or the "assessment spread" in that all costs are allocated proportionally or "spread" amongst all properties within the BID. The method and basis of spreading program costs varies from ODe BID to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the District. Assessment districts may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or "stepped-down" benefits derived. Supplemental Proposition 218 Procedures and Requirements Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the South LA Industrial Tract BID. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were "chaptered" into Jaw as Article XIIID of the California Constitution. Since Prop 218 provisions will affect all subsequent calculations to be made in the final assessment formula for the South LA Industrial Tract BID, Prop 218 requirements will be taken into account. The key provisions of Prop 218 along with a description of how the South LA Industrial Tract BID complies with each of these provisions are delineated below. (Note: All.section references below pertain to Article XlII of the California Constitution):. -..'. Finding 1. From Section 4(a): "Identify all parcels which will have a special benefit conferred UpODthem and upon which an assessment will be imposed" There are 281 "identified" parcels within the proposed South LA Industrial Tract BID which will individually derive special benefit from the proposed District programs and activities. The benefits are special and unique only to the identified properties within the proposed District because programs and services (i.e, security and safety, maintenance, operations and special projects/contingency) will only be provided directly for the identified properties. These identified benefiting parcels are located within the BID perimeter boundary which is shown on the Boundary Map included in the Management District Plan and are listed as an attachment to the Plan and this Report - identified by assessor parcel number. 3

THE SOUTH LOS A,.,GELES INDUSTRIAL TRACT BUSINESS 1M} ~~0VEMENT The boundaries of the South LA Industrial Tract BID, which have remained the same since the BID was originally established, generally are bounded by Slauson Avenue on the north, Central Avenue and McKinley Avenue on the east, Florence Avenue on the south and Avalon Boulevard on the west. The northern, southern, eastern and western boundaries have been the traditional boundaries of the South Los Angeles Industrial Tract (formerly known as the Goodyear Tract). These boundaries were adopted during the original formation of the BID and are defmed by industrial land uses and buildings with gated entrances to through streets. The South LA Industrial Tract BID is bounded by residential properties on the east, west, and south and separated by railroad tracks on the northern boundary. Property zoned exclusively residential will not be assessed. Northern Boundary The south side of Slauson Avenue between Avalon Boulevard on the west and Central Avenue on the east was chosen because parcels inside the boundary are of industrial use and within the South Los Angeles Industrial Tract. No Services will be provided on the north side of Slauson Avenue which is divided by railroad tracks. Western Boundary The east side of Avalon Boulevard between the south side of Slauson Avenue and the north side Florence Avenue was chosen because parcels inside the boundary are of industrial use and within the South Los Angeles Industrial Tract. No Services will be provided on the west side of Slauson Avenue due to the residential nature of the area. Southern Boundary The north side of Florence Avenue between the east side of Avalon Boulevard and the east side of McKinley Avenue and north side of Gage Avenue between the east side of McKinley Avenue and the west side of Central Avenue was chosen because the parcels inside the boundary are of industrial use and within the South Los Angeles Industrial Tract. No services will be provided on the south side offjorence Avenue because of the residential nature of the area. Services will not be provided to the Post Office parcel on the south side of Gage Avenue because of restricted access and Federal security measures, Eastern Boundary The west side of Central Avenue between the south side of Slauson Avenue and the north side of Gage A venue was chosen because the parcels inside the boundary are of industrial use and within the South Los Angeles Industrial Tract. No services will be provided on the east side of Central Avenue because of the residential nature of the area. The east side of McKinley Avenue between the north side of Gage and the north side of Florence was chosen because of the parcels within the boundary are of industrial use and within the South Los Angeles Industrial Tract. No services will be provided to the Post Office parcel between McKinley Avenue and Central Avenue because of restricted access and Federal security measures. All identified parcels within the above-described boundaries shall be assessed to fund special benefit services, 4

THE SOUTH LOS AJ\\.Y LES INDUSTRIAL TRACT BUSINESS IMPkvVEMENT programs and improvements as outlined in this report. BID funded activities will only be provided to properties inside the District boundaries ~ none outside. Finding 2. From Section 4(a): "Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. " As stipulated by Proposition 218, assessment District programs and activities may confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the District properties. For the purposes of this analysis, a "general benefit" is hereby defined as: "A benefit to properties in the area and in the surrounding community or benefit to' the public in general resulting from the improvement, activity, or service to be provided by the assessment levied". A General Benefit includes benefits conferred generally on real property located in the assessment district, and is not restricted to benefits conferred on persons and property outside the assessment district. "Special benefit" as defined by the California State Constitution means a distinct benefit over and above general benefits conferred on real property located in the District or to the public at large. Furthermore a "special benefit" must affect the assessed property in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. The property uses within the boundaries of the BID are a mix of industrial, manufacturing and office. Services, programs and improvements provided by the District are primarily designed to provide special benefits to identified commercial parcels within the boundaries of the district. Existing City of Los Angeles services will be enhanced, not replaced or duplicated, by BID services. In the case of the South LA Industrial Tract BID, the very nature of the purpose of this District is to fund supplemental programs, improvements and services within the BID boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. These services, programs and improvements, are designed to enhance the security and upkeep of the public areas within this industrial center. AU benefits derived from the assessmentsto be levied on parcels within the BID are for services, programs and improvements directly benefiting the properties within this area and support increased security, cleanliness, commerce, business attraction and retention, increased property rental income and improved District industrial identity. No services will be provided beyond the BID boundaries. The following services, programs and improvements will provide special benefit to the identified properties within the BID boundaries: 1. Security and Safety The South Los Angeles Industrial Tract BID security program mission is to support the property owners and tenants in overall crime prevention and reduction efforts, while offering a customer service orientation to tenants. Uniformed safety patrol officers provide a variety of security and safety services by assisting properly owners, patrons and employees, support police crime prevention efforts to reduce the incidence of crime and reduce nuisance activities, and productively address the challenges associated with street populations. The Safety Patrol team has 5

THE SOUTH LOS Al'IGELES INDUSTRIAL TRACT BUSINESS lm}c..ovement been extremely effective in reducing crime in the area. More than 50% less arrests were made in 2009 compared to 2007, a significant reduction The security team will provide services on a 24-hour basis through a combination of bicycle and vehicular patrol, -. to deter property theft, illegal dumping, street vending, and street code violations. The patrol also deters aggressive panhandling and handles quality of life problems including: drinking in public, indecent exposure, trespassing, prostitution and scavenging. Security personnel monitor the District's system of sixty video cameras 24 hours per day, 7 days a week. Recordings are made and stored of images from all cameras to use in prosecuting criminal behavior. The video monitor will act as a dispatcher by observing incidents and dispatching either the bike patrol or vehicle patrol to investigate. The monitor will also act as the link to the Los Angeles Police Department and call LAPD to assist when necessary. A budget for ongoing repairs and maintenance is established, including repair of broken gates and arms, technical malfunctions, replacement of damaged cameras, repair or replacement of signs, the parking gate cabinets and the dispatch booth. The Security and Safety patrol will assist in creating a safe and secure environment in the BID area and enhance the South Los Angeles Industrial Tract. This activity is designed to increase vehicular and pedestrian traffic within the Industrial Tract that will increase commerce and attract and retain new business and patrons within the BID boundaries. These Security and Safety services will only be provided within the BID boundaries; therefore these services constitute "special benefits" to the assessed parcels. 2. ~UNTENANCE Maintenance includes sidewalk sweeping and pressure washing, graffiti abatement, trash and/or bulky item removal, and other maintenance issues that may arise. Each maintenance service will assist in enhancing the image of the BID area. This activity is designed to increase vehicular and pedestrian traffic within the South Los Angeles Industrial Tract that will increase commerce and attract and retain new business and patrons within the BID boundaries. These maintenance services will only be provided within the BID boundaries; therefore these services constitute "special benefits" to (he assessed parcels. 3. OPERATING COSTS Included in the Administration component are the costs for an Executive Director, office expenses, newsletters, legal fees, accounting/bookkeeping fees, and Directors & Officers and General Liability insurance. 6

THE SOUTH LOS Al\:b'ELES INDUSTRIAL TRACT BUSINESS IMPk0VEMENT This component is key to the proper expenditure of BID assessment funds and the administration of BID programs and activities that are intended to promote business within the BID boundaries through increased commerce and the attraction and retention of new business. Because this operating cost/administration program exists only for the purposes of the BID and will only be provided for matters occurring within the BID boundaries, this program constitutes a "special benefit" to the assessed parcels. 4. SPECIAL PROJECTS/CONTINGENCY The Special Projects/Contingency budget includes City/County of Los Angeles collection fees, annual meeting costs, reserve funds and additional projects the Owners' Association (BID) deems appropriate. The contingency is ancillary and necessary to the unimpeded delivery ofthe BID's programs and services. All special projects are designed to enhance the assets and image of the commercial corridor, and thereby increase commerce and promote business within the boundaries of the BID. This special projects/contingency services program will only be provided within the BID boundaries, therefore this program provides a "special benefit" to the assessed parcels: Each of these programs and activities work together to create a more pleasing environment within the District that is conducive to strengthening the current and future economic vitality of the commercial corridor through the attraction and retention of new business and increased commerce. The programs, improvements and services are designed to specifically benefit parcels within the BID boundaries. The proposed BID assessments will only be levied on parcels within the BID boundaries and assessment revenues will be spent to deliver services that provide a direct and special benefit to assessed parcels and to improve the economic vitality of these properties. Inasmuch as no services will be provided beyond the BID boundaries to the surrounding communities or to the public in general, any general benefit is unintentional. It is hereby determined that general benefits, if any, are not quantifiable, measurable, or tangible. Each of the above programs and activities work together to create an environment within the district that is conducive to strengthening the current and future economic vitality of this industrial area through the attraction and retention of new business, increased commerce and increased occupancy rates. The programs, improvements and services are designed to specifically benefit properties within the BID boundaries. The proposed BID assessments will only be levied on identified properties within the BID boundaries and assessment revenues will be spent to deliver services that provide a direct and special benefit to assessed parcels and to improve the economic vitality of these properties. Inasmuch as no services will be provided beyond the BID boundaries to the surrounding communities or to the public in general, any general benefit is unintentional. It is hereby deter milled that general benefits, if any, are not quantifiable, measurable, or tangible. 7

THE SOUTH LOS Al-JGELES INDUSTRIAL TRACT BUSINESS IJ\fr KOVEMENT Finding 3. From Section 4(a): "(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the cost of public improvement(s) 01' the maintenance and operation expenses or the cost of the property related service being provided. Each identified parcel within the district will be assessed based on property characteristics unique only to that parcel. The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified parcel within the district as a whole. Larger parcels are expected to impact the demand for services and programs to a greater extent than smaller ones and thus are assigned a higher proportionate degree of assessment program and service costs. The proportionate special benefit cost for each parcel has been calculated based on the optimum proportionate formula component and is listed as an attachment to the Management District Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) are computed by dividing the individual parcel assessment by the total special benefit program costs. Finding 4. From Section 4(a): "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on tbat parcel." Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the South LA Industrial Tract BID, they are also considerably less than other options considered by the South LA Industrial Tract BID proponent group. The actnal assessment rate for each parcel within the BID directly relate to the level of service to be provided based on the respective lot size of each parcel. Finding 5. From Section 4(a): "Parcels... that are owned or used by any (public) agency shall not be exempt from assessment " There are six publicly owned parcels located within the South LA Industrial Tract BID. There is no compelling evidence that these publicly owned parcels would not benefit equally to privately owned parcels and, thus, they are to be assessed in the same manner and rate as private parcels in the BID. These parcels are listed below indicating their APN, owner, Year 1 assessment and assessment percentage of the total District assessment: APN 6007-001-900 6007-003-902 6007-003-900 6007-003-903 6007-003-901 6007-005-900 Legal Owner D Delat Ptshp Community Redevelopment Agency Community Redevelopment Agency Community Redevelopment Agency Community Redevelopment Agency Community Redevelopment Agency Assessment $1,411.29 $5,645.34 $10,820.25 $5,723.73 $3,057.84 $4,665.24 %oftotal 0.18% 0.72% 1.37% 0.73% 0.39% 0.59% 8

THE SOUTH LOS AN(;ELES INDUSTRIAL TRACT BUSINESS IMPRUVEMENT Finding 6. From Section 4(b): "All assessments must be supported by a detailed engineer's report prepared by a registered professional engineer certified by the State of California". This report serves as the "detailed engineer's report" to support the benefit property assessments proposed to be levied within the South LA Industrial Tract BID. Finding 7. From Section 4(c): "The amount of the proposed assessment for each parcel shall be calculated (along with) the total. amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated." The individual and total parcel assessments attributable to special property benefits are shown on Appendix A to the Management District Plan and Appendix 1 of this Report. The District and resultant assessment payments will continue for 5 years and may be renewed again at that time. The reasons (purposes) for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed solely to land area of each parcel. There is one Benefit Zone. Assessment Formula Methodology Step 1. Select "Basic Benefit Unit(s)" BID assessment formulas typically are based on either property street frontage or parcel and building size or location, all which relate to the amount of special benefit conferred on a particular parcel and the proportionate assessment to be paid. The formula may base assessments on a single factor or a combination of factors. Based on the specific needs and corresponding nature of the program activities to be funded by the South LA Industrial Tract BID (i.e. security and safety, maintenance, operations and special projectsjcontingency), it is the opinion of this Assessment Engineer that the assessment factor on which to base assessment rates relate directly to the proportionate amount of land are of each parcel, For a built-up industrial use area, the application of land area quantity is a proven method of fairly and equitably spreading special benefit costs to these primary beneficiaries of BID funded services, programs and improvements. This factor directly relates to the degree of benefit each parcel will receive from BID funded activities. Land area is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on BID funded activities such as security and maintenance. In the opinion of this Assessment Engineer, the targeted weight of this factor, land area, should generate 100% of the total BID revenue. 9

THE SOlJtH LOS ANGELES INDUSTRIAL TRACT BUSINESS IM:Pn.0VEMENT The "Basic Benefit Unit" will be expressed as a function of land square footage (Benefit Unit "A"). Based on the shape of the South LA Industrial Tract BID, as well as the nature ofthe District program elements, it is determined that all properties will gain a direct and proportionate degree of benefit based on the respective amount of parcel size within one benefit zone. Step 2. Quantify Total Basic Benefit Units Taking into account all identified benefiting properties and their respective assessable benefit units, there are within 8,766,349 Benefit Units A. Step 3. Calculate Benefit Units for Each Property. The number of Benefit Units for each identified benefiting parcel within the South LA Industrial Tract BID was computed from data extracted from City of Los Angles land records as well as County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property based assessments. All respective property data being used for assessment computations will be provided to each property owner in the BID for their review. All known or reported discrepancies, errors or misinformation will be corrected. Step 4. Determine Assessment Formula Based on the nature of the programs to be funded as well as other rationale outlined in Step 1 above, it has been determined that the South LA Industrial Tract BID assessments will be based on each parcel's land area within one benefit zone. The projected amount of assessment revenue needed to carry out the stated programs in Year 1 is $788,971.41. It is noted that $95,000 is available for carryover from the final year ofthe current BID term and will be distributed, as needed, amongst the various BID work plan line items (See Table 1 on page 11). The targeted BID assessment formula component weight is 100% for land area, Benefit Unit A. Computing Assessment Formula Unit Costs: (Benefit Unit "A") = $788,971.41 x 100.00% 18,766,349 sq [t= $0.09/sq ft The assessment formula is: LAND AREA x $O.09/SF 10

THE SOUTH LOS A~GELES INDUSTRIAL TRACT BUSINESS IMPkuVEMENT Step 5. Estimate Total District Costs Based on Year 1 assessment revenue plus carryover from the final year of the current BID term, the total District costs for 2011 are projected to be as shown below in Table 1. TABLE 1 2011 District Costs (includes a carryover of $95,000) Program funded by the South LA Industrial Tract BID % of Budget Budget (2011) Security and Safety 84.28% $745,019 Maintenance. 5.48% $48,400 Operations 7.65% $67,620 Special Proj ects/contingency 2.59% $22,932 Total 100.00% $883,971 Step 6. Separate General Benefits from Special Benefits and Related Costs (prop 218) All benefits derived from the assessments outlined in the Management. District Plan and this Report are for supplemental services, programs and improvements directly benefiting the identified properties within the BID. All BID funded activities are provided solely to properties within the South LA Industrial Tract BID. All services will be delivered only within the boundaries and designed only for the direct special benefit of the identified assessed properties in the BID. No services will be provided to non-assessed parcels outside the BID boundaries. Any potential spill over effect is unquantifiable as previously discussed in this report. Thus, all general benefits (if any) within or outside of the BID, are inadvertent,intangible and immeasurable. Total District assessment revenues (minus the carryover) are shown below in Table 2. TABLE 2 Total Year 1 District Revenues.,. '"~, _~., ",, 'w",_.,_.,,_, _"._.,_,.,.~,.U"U"."U.'._ ~~.. '''' ~.' '. '_'"_.,,..,._""',.. t:=-=:=.~~:=~~:-=-~~==~~~~~;;~::;'q.;~~~---~-=~~-:~~:-~~~~=-=~=~==-! s~~~~i.:;,~-;,~~~-;-'~~~~r--~ isidassessments ~., ~.~,._~,, u ~.~... ~.~._ ~.'_w...,...! $788,971.41.. '... ~.~ i...~.,_,_ 100.00%... 'u._,~.u~ '.' ~OTAL.... REVENUE._.._._._._...... _._....! _ $788971.41.._.._L..!. 100.00% _...! Step 7. Calculate "Baste Unit Cost" With the 2011 assessment revenue projection of $788,971.41 (special benefit only), the Basic Unit Cost is shown above in Step 4. Since the BID is being renewed for a 5 year term, maximum assessments for future years must be set 11

THE SOUTH LOS.. GELES INDUSTRIAL TRACT BUSTh'ESS mil..ovement up front An annual flat inflationary assessment rate increase of up to 3 % may be imposed each year, on approval by the BID Property Owner's Association. Maximum assessment rates for the 5 year life of the BID are shown below in Table 3.. TABLE 3 Maximum Assessment Rates For 2011-15 (3% max annual increase) Year Land Area Rate ($/SF) 2010 $0.0900 2011 $0.0927 2012 $0.0945 2013 $0.0983 2014 $0.1013 Step 8. Spread the Assessments The resultant assessment spread calculation results for each parcel within the BID are shown in the Management District Plan and were determined by applying the District assessment formula to each identified benefiting property. 12

THE SOUTH LOS A.. -:.'ELES INDUSTRIAL TRACT BUSTh'ESS IMh~JVEMENT APPENDIX 1 2011 ASSESSMENT ROLL 13

THE SOUTH LOS,_~.CELES INDUSTRIAL TRACT BUSINESS IM", JVEMENT 1 st Year APN Assessment 6007-016-003 $1,764.18 6007-016-001 $1,215.27 6007-016-002 $901.62 6007-005-014 $8,742.42 6007~010-004 $3,057.84 6007-010-006 $901.62 6007-010-005 $1,372.14 6007-011-011 $7,213.50 6007-019-001 $6,076.62 6007-019~002 $2,548.26 6007-008-014 $2,744.28 6007-008-016 $2,038.59 6007-008~015 $1,764.18 6007-011-009 $6,429.42 6007-007 -004 $2,391.39 6007-007 -003 $2,587.41 6007-004-007 $2,469.78 6007-004-004 $4,900.50 6007-004-005 $1,215.27 6007-004-006 $1,215.27 6007-004-008 $9,212.94 6007-011-010 $6,939.09 6007-019-007 $10,428.21 6007-019-011 $1,920.96 6007-002-028 $11,957.22 6007-003-018 $1,803.33 6007-002-019 $4,351.59 6007-0D.2~018 $7,252.74 6007~010-008 $1,764.18 6007-010-007 $3,567.51 6007-018-026 $1,646.55 6007-018-003 $2,313.00 6007-018-004 $1,372.14 6007-018-002 $666.45 6007-018-027 $6,037.38 6007-019-008 $1,215.27 6007-005-005 $4,900.50 6007-010-010 $1,332.90 6007-010-009 $1,646.55 1 st Year APN Assessment 6007-011-002 $6,037.38 6007-015-027 $2,783.52 6007-003-011 $10,193.04 6007-004-016 $2,038.59 6007-017 -002 $1,058.49 6007-017-013 $862.47 6007-009-011 $784.08 ~007-016-012 $2,409.75 6007-016-013 $2,085.75 ~007-015~025 $901.62 6007-015-026 $705.60 6007-007-016. $1,528.92 6007-007-015 $4,665.24 6007-015-023 $3,323.34 ~007-004-013 $1,999.35 6007-009-025 $8,938.44 6007-009-023 $3,567.51 ~007-009-024 $1,764.18 6007~018-015 $2,195.37 6007-009-006 $1,254.51 6007-003-902 $5,645.34 ~007 ~003-900 $10,820.25 6007-003-903 $5,723.73 6007-005-900 $4,665.24 6007-003-901 $3,057.84 ~007-005-016 $8,036.82 6007-015-017 $1,561.05 ~007-005-015 $1,724.94 6007-001-900 $1,411.29 6007-009-012 $1,568.16 6007-009-013 $784.08 ~007-002-017 $1,489.68 6007-002-022 $2,038.59 6007-005-001 $4,429.98 6007-002~023 $4,508.46 6007-005-019 $4,963.14 6007-018-021 $13,721.40 ~007-017-021 $6,076.62 6007-001-009 $3,293.10 1 5t Year APN Assessmen 6007-018-014 $6,625.44 p007-007 -018 $862.47 ~007-007-017 $3,018.69 6007-011-003 $3,567.51 6007-008-017 $1,764.18 6007-011-001 $3,567.51 6007-003-005 $3,293.10 6007-019-005 $2,744.28 6007-019-006 $2,744.28 6007-018-009 $1,568.16 6007-007-010 $1,293.66 6007-007-012 $1,321.92 6007-007-011 $2,744.28 6007-015-004 $548.82 6007-018-029 $862.47 6007-017 -001 $1,646.55 6007-008-010 $2,430.63 6007-008-011 $2,626.65 6007-006-016 $1,254.51 6007-006-014 $3,881.16 6007-006-015 $1,097.64 6007-006-006 $1,215.27 ~007-007 -021 $823.23 ~007-015~0 10 $627.21 K3007~O15-009 $548.82 K3007-008-009 $2,705.04 K3007-005-009 $1,332.90 K3007-005-008 $1,215.27 K3007-010-001 $8,899.29 K3007-015-018 $1,582.47 K3007-016-014 $8,781.66 6007-016-025 $960.30 6007-016-009 $1,764.18 6007-016-028 $1,764.18 6007-016-030 $5,214.06 6007-010-014 $1,646.55 6007-006-009 $3,018.69 6007-019-003 $1,097.64 6007-019-004 $1,097.64

THE SOUTH LOS A. JELES INDUSTRIAL TRACT BUSINESS IMPhJVEMENT DISTRlCT APN is! Year Assessment 6007-015-005 $1,254.51 6007-017-014 $862.47 6007-006-00B $1,999.35 6007-004-001 $4,900.50 6007-015-007. $1,058.49 6007-015-011 $1,295.73 6007-018-013 $3,097.08 6007-015-024 $3,323.34 6007-016-015 $2,038.59 6007-016-017 $2,038.59 6007-0:16-01B $4,037.94 6007-016-016 $1,019.25 6007-010-013 $1,293.66 6007-009-014 $784.08 6007-006-011 $1,999.35 6007-007 -001 $1,999.35 6007-009-015 $1,960.20 6007-006-013 $1,881.72 6007-006-012 $1,568.16 6007-009-007 $784.0B 6007-004-012 $1,999.35 6007-009-00B $3,097.08 6007-006-005 $1,215.27 6007-006-007 $1,685.70 6007-004-009 $6,899.B5 6007-017-020 $980.10 6007-015-003 $392.04 6007-015-002 $1,332.90 6007-015-020 $509.58 6007-015-022 $3,323.34 6007-015-021 $1,593.09 6007-008-00B $2,391.39 6007-003-014 $2,901.06 6007-002-001 $3,293.10 6007-002-003 $3,293.10 6007-002-024 $3,175.47 6007-002-026 $1,058.49 6007-005-006 $2,469.7B 6007-005-007 $1,215.27 6007-007-005 $2,509.02 6007-007-006 $1,607.31 6007-007 -007 $2,391.39 6007-007-008 $1,411.29 APN is! Year Assessment ~007-002-004 $4,469.22 6007-002-005 $3,293.10 6007-002-006 $3,293.10 6007-002-027 $1,607.31 6007-002-008 $1,646.55 6007-003-017 $1,803.33 6007-003-016 $2,901.06 6007-003-015 $2,901.06 6007-002-009 $1,646.55 ~007-002-029 $980.10 16007-003-001 $1,647.45 16007-002-002 $666.45 16007-019-014 $1,881.72 ~007-019-012 $3,097.08 ~007-019-013 $2,783.43 ~007-018-008 $1,568.16 6007-010-017 $1,607.31 6007-010-016 $980.10 6007-010-01 B $4,7B2.87 6007-003-007 $2,861.82 6007-003-008 $1,372.14 6007-008-007 $4,900.50 6007-006-020 $1,960.20 6007-006-018 $784.0B 6007-006-019 $1,568.16 6007-001-007 $4,939.65 6007-001-008 $4,939.65 6007-005-012 $1,999.35 6007-006-017 $784.0B 16007-01B-007 $6,233.40 6007-017 -004 $3,097.08 16007-017-003 $1,842.57 ~007-006-024 $4,665.24 16007-018-02 B $431.19 16007-018-012 $9,291.33 16007-008-013 $1,607.31 16007-008-012 $1,411.29 6007-010-020 $1,332.90 16007-010-012 $1,332.90 6007-004-010 $9,291.33 6007-016-029 $4,277.70 6007-016-023 $4,469.76 6007-015-006 $3,018.69 APN 1 st Year Assessmen S007-006-025 $6,978.24 6007-006-002 $3,685.14 6007-009-022 $1,215.27 6007-009-020 $2,509.02 6007-009-019 $2,705.04 6007-009-021 $705.60 6007-006-010 $3,018.69 6007-004-014 $1,999.35 6007-016-004 $3,567.51 ~007-017-o19 $901.62 ~007-017 -018 $1,568.16 ~007-003-013 $5,253.30 6007-003-012 $1,56B.16 6007-003-006 $3,293.10 ~007-002-02o $2,038.59 ~007-002-021 $313.56 S007-001-005 $666.45 So07-001-006 $1,329.75 ~007-006-021 $1,136.B8 ~007-01B-011 $2,273.76 ~007-018-010 $3,057.84 6007-018-006 $4,97B.89 6007-007-019 $784.08 6007-007-020 $3,097.08 ~007-019-020 $2,979.45 6007-015-012 $627.21 6007-001-001 $1,521.00 6007-010-002 $1,607.31 6007-010-003 $1,960.20 6007-017-016 $862.47 ~007-017-015 $3,685.14 ~007-017-017 $3,057.84 ~007-009-001 $548.82 ~O07-009-002 $1,764.18 ~007-005-004 $1,489.68 ~007-005-018 $4,840.29 ~007-004-015 $2,038.59 ~007-008-001 $2,705.04 ~007-008-003 $2,116.98 6007-005-013 $2,391.39 6007-006-027 $784.0B 6007-006-026 $1,176.12 6007-016-019 $1,528.92

THE SOUTH LOS,~.,GELES INDUSTRLU TRACT BUSINESS 1M!:.~...OVEl\1ENT 1 st Year APN Assessment 6007-008-004 $2,744.28 6007-008-005 $627.21 6007-008-006 $3,175.47 6007-008-002 $1,568.16 6007-011-004 $2,744.28 6007-019-016 $3,567.51 6007-01'9-015 $2,626.65 6007-019-019 $8,624.88 6007-009-009 $1,568.16 6007-009-010 $784.08 6007-005-011 $3,998.79 6007-004-002 $2,469.78 6007-004-003 $2,469.78 6007-003-004 $3,214.71 6007-009-005 $1,568.16 6007-009-003 $1,411.29 6007-009-004 $2,469.78 6007-009-018 $1,411.29 6007-009-026 $1,411.29 6007-015-008 $548.82 6007-011-005 $4,116.42 6007-017 -005 $4,586.85 6007-017-007 $4,194.81 6007-017-008 $2,744.28 6007-017-009 $2,038.59 6007-017-006 $2,195.37 6007-010-015 $2,587.41 6007-019-017 $3,097.08 6007-019-018 $6,194.16 6007-010-019 $1,293.66 6007-010-011 $1,646.55 6007-003-022 $6,507.81 6007-007 -002 $1,489.68 6007-007 -009 $6,272.64 6007-016-026 $2,509.08

Members of the South Los Angeles Industrial Tract Business Improvement District 2011 Advisory Board are: Duke Dulgarian (Property owner) Steve Stone (Property owner) Mehrdad Haghiri (Business owner)