00 - citrus ranch (indio) marketing...

C i t ru s R a nc h

City of Indio

Riverside County, CA

Marketing Brochure

2

Table of Contents

EXECUTIVE SUMMARY

Project Advantages 4

Property Description 6

Regional Map 15

Local Map 16

Vicinity Map 17

Aerial Map 18

Site Photos 19

School Information 20

PHASING & COST PROJECTIONS

Phasing Plan Map 22

Backbone Cost Assumptions 23

In-Tract Cost Assumptions 24

Community Facility District (CFD) 25

Improvement Cost Summary 26

Terra Lago Golf Course

COMMUNITY PLANS

Grading & Drainage Plan 28

Golf Course 29

Community Center Plan 30

Open Space Plan 31

Community & Neighborhood Parks 32

MARKET OVERVIEW

Coachella Valley Overview 34

City of Indio Overview 37

Citrus Ranch Overview 40

OFFERING OVERVIEW

Offering Guidelines 42

Project Advantages

Property Description

Regional Map

Local Map

Vicinity Map

Aerial Map

Site Photos

School Information

Executive Summary

4

Executive Summary

Citrus Ranch

• Citrus Ranch is a new master-planned golf course community containing

approximately 3,053 Residential units ranging in density from 2.5 to 15 du/ac

within an 1,183 acres site located in the desirable northern portion of the City of

Indio. The community is planned to integrate comfortable residential living,

diverse recreational opportunities and a boutique hotel with the surrounding

natural open space of the desert.

• The site is located at the foothills in north Indio and features mountain and

open space orientations along with the proximity to newer retail/commercial

centers.

• The project offers an attractive new gated master-planned community

positioned at a premium to slightly older neighborhood resales due to the

foothill location, new home premium, and integrated amenities and as an

affordable alternative to the higher priced Palm Desert area.

• There is an opportunity to bring in a compelling new master-planned

community with mountain and open space orientations that offers more than

the area legacy communities which typically feature only neighborhood parks

and walking trails. A new large master-planned community featuring an

attractive community setting and amenities (community pool/spa, clubhouse,

parks, and golf, etc.) with segmented products will achieve a premium in

comparison to the area competition.

• This is the only entitled master planned community in Indio available for

purchase.

• Citrus Ranch residents can explore wilderness trails and open space, play golf

among the foothills of the mountains surrounded by the desert landscape, and

stroll along the paseos and trails that connect and weave into many

neighborhoods.

Project Advantages

• The theme of the development reflects the historic uses of the site: an

established citrus grove as well as the natural desert. Citrus tree-lined

roadways, paseos, and greenbelts roam throughout the community.

• The highlight of Citrus Ranch is an exceptional golf experience with several of

the holes intermingling through the foothills, a driving-range nestled against the

desert slope, and a clubhouse to complement the golf operations.

• Citrus Ranch’s 18-hole, 7,100 yard, par 72 golf course provides spectacular

views of the surrounding communities and takes advantage of the natural

topography of the southern portion of the site.

• Citrus Ranch features a neighborhood community center that provides a key

gathering place for residents and their guests.

• Citrus Ranch is an exceptional community for all lifestyles and provides the

ultimate integration of nature, recreation, and comfortable living.

5

Executive Summary

City of Indio

• Quite literally, all signs lead to Indio. Whether actual freeway signs, billboard

advertising, new homebuyers or the sheer pull of economic growth, Indio is the

ultimate destination in the Coachella Valley. Close to 200 new businesses, both

national and international in scope, have established themselves within Indio this

past year. Many of those are well-known retail outlets attracting countless

shoppers to the area and reinforcing Indio as the retail hub of the Valley. And

some of the boost can be attributed to the many events Indio is most happy to

accommodate, including internationally known Coachella and Stagecoach music

festivals which cause hundreds of thousands of fans from both near and far to

descend upon the area with an economic impact of over $254M in the Valley.

• Over $350 million will be invested into Indio through public projects, thereby

enhancing Indio’s economic base, spurring future development and increasing

job opportunities in the region. Indio essentially employs the region by the sheer

number of businesses in existence and the number of people working in the

community. And Indio’s city leaders recognize the importance of enacting pro-

active, business-friendly policies and are always pushing toward that end.

• Indio is where new homebuyers want to be. And this is why Lennar, K

Hovnanian, Shea Homes, DR Horton and Woodside Homes all bought lots in

2012 in Indio. In fact, 2,800 improved lots were available in Indio in June 2012

and by year end only 702 lots remained! Citrus Ranch is the only entitled master

plan community that could be in a position to deliver improved lots in 24 months

to homebuilders. And there will be stiff competition to buy these lots.

• The City of Indio has the highest population throughout the Coachella Valley with

78,065 residents.

• According to Dataquick, the City of Indio had the highest existing home sales in

the Coachella Valley from 2011 to 2012 with 1,632 sold, followed by La Quinta

with 1,276 sold and Palm Desert with 1,191 homes sold. Indio also had the

highest volume of New Home Sales throughout the Coachella Valley. Indio had

169 new homes sold, La Quinta with 61 new homes sold and Palm Springs with

58 new homes sold.

Project Advantages

Coachella Valley

• According to the U.S. Census, the Coachella Valley’s 39.8% increase in

population from 2000-2012 was much faster than the Inland Empire (31.8%), the

U.S. (11.7%), and California (11.2%).

• In the past decade, the Coachella Valley’s median existing home price soared

from 2000-2007, rising a compound annual rate of 15.8% from $170,756 to

$477,672. In 2008, with demand evaporating, the median price fell to $317,114.

This process continued through 2009 with prices reaching a low for the cycle at

$218,069. In 2010, prices moved up to $248,444 with increased demand due to

rising affordability and investor purchases. They fell a little in 2011 to $232,463,

but moved up to $270,201 by second quarter 2012, up 23.9% from the 2009 low

(Dataquick).

6

Property History

Citrus Ranch was most recently utilized as active agricultural land and open space.

Ventura Coastal Corporation owned and operated a citrus grove of approximately

380 acres that existed on the southern parcel for approximately 65 years, along with

harvesting and processing equipment. Several building foundations that supported

the citrus operation are located in the center of the grove. Around 1980,

approximately 140 acres of the northern parcel were used for the installation of the

citrus operation’s leach field for citrus pulp, citrus acid, and other waste products. In

addition, the military used the northern parcel for training purposes starting in early

1960s and continuing through the 1980s. Most of the site is highly disturbed due to

agricultural operations as well as the use of off-road vehicles in and west of the site.

Location

Citrus Ranch is located the Indio Hills area of Indio, in the County of Riverside. The

Indio Hills area is an expansive, sparsely developed, rural residential community

located along the southern portion of Dillon Road, north of the current boundaries of

the City of Indio. Specifically, the site is located just west of Dillon Road, between

Avenue 37 and Avenue 41.

Municipality

City of Indio

Owner of Record

Assessor Parcel Numbers

601-031-001, 601-031-003, 601-031-008 thru 009, 601-031-011, 601-041-002, 601-

041-009 thru 011, 745-380-001 thru 003.

Acreage

Approximately 1,183 gross acres

Property Condition

Citrus Ranch is currently open space and agricultural land.

Zoning

Citrus Ranch is currently zoned Agriculture with an approved Specific Plan (“Indio

Citrus Ranch” SP).

Entitlement Status

Indio Citrus Ranch has an approved Specific Plan and Final EIR. The property was

annexed into the City of Indio in 2013.

Topography

Citrus Ranch’s southwestern portion of the site consists of hilly terrain while the

balance of the site is a generally flat plain.

Homeowners Association

A Homeowners Association (HOA) is likely to be established to maintain common

areas. Monthly dues and obligations have not been determined.


Executive Summary

Dillon Avenue 44, LLC

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Land Use

The Citrus Ranch Specific Plan Land Uses and Residential Summary are describedin the following tables and illustrated in the Land Use Plan:


Executive Summary

Land Use Acres

Residential 576.0

Boutique Hotel 5.4

Clubhouse 6.0

Community Center 5.0

Open Space 520.6

Undisturned Open Space [186.7]

Wilderness Trails [3.0]

Community Park [6.1]

Neighborhood Park [9.3]

Citrus Grove Paseos [11.3]

Recreation OS Playfields [56.2]

Dillon Road Landscape [7.2]

Golf Course [233.1]

SE Drainage Channel [7.7]

Community Collector Streets 60.0

Dillon Road R.O.W. 3.9

Golf Course Maintenance Yard 1.6

Fire Station Site 2.0

Well Site 3.0

Total 1,183.5

Planning Area Acres DensityCategory

TargetNumber of Residences

1 5.00 LDR 112 4.90 LDR 103 5.90 LDR 154 15.20 MDR 895 16.80 MDR 1076 9.50 LDR 417 24.00 MDR 1278 7.10 MDR 34

9A 10.50 MDR 599B 10.00 HDR 13510 15.50 HDR 23211 9.60 HDR 14412 17.70 HDR 23613 29.40 MDR 14314 15.10 LDR 5615 27.40 MDR 13416 14.30 LDR 6017 34.50 LDR 9218 18.70 LDR 8019 24.80 LDR 7920 25.10 LDR 9421 20.00 LDR 7422 27.70 LDR 10323 38.10 LDR 16224 43.60 MDR 21125 19.30 LDR 8226 34.70 MDR 16727 31.20 MDR 16728 20.40 MDR 109

(31*) (5.4) (LDR) (22)

Total 576 (581.4*) 3,053 (3,075*)

Residential Planning Area Summary Table

*PA 31: Should market condition not support the Boutique Hotel, PA 31 will bedeveloped with a maximum of 22 residential units at PA 14 standards.

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Executive Summary

Specific Plan

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Low Density Residential Planning Areas

Planning Area Units Acres du/ac1 11 5 2.22 10 4.9 23 15 5.9 2.56 41 9.5 4.3

14 56 15.1 3.716 60 14.3 4.217 92 34.5 2.718 80 18.7 4.319 79 24.8 3.220 94 25.1 3.721 74 20 3.722 103 27.7 3.723 162 38.1 4.325 82 19.3 4.2

Totals: 959 262.9

Single Family Detached Housing

Executive Summary

10

Medium Density Residential Planning Areas

Planning Area Units Acres du/ac

4 89 15.2 5.95 107 16.8 6.47 127 24 5.38 34 7.1 4.8

9A 59 10.5 5.613 143 29.4 4.915 134 27.4 4.924 211 43.6 4.826 167 34.7 4.827 167 31.2 5.428 109 20.4 5.3

Totals: 1347 260.3

Attached & Detached Housing

Executive Summary

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High Density Residential Planning Areas

Planning Area Units Acres du/ac9B 135 10 13.5

10 232 15.5 15

11 144 9.6 15

12 236 17.7 13.3

Totals: 747 52.8

Attached & Detached Housing

Executive Summary

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Circulation

The Citrus Ranch Specific Plan provides for the development of adequate roadway

improvements and is planned as a gated community. It includes provision for public

transportation, unique pedestrian systems, hiking, biking, and parking.

Water and Sewer Plan

The Indio Water Authority provides water service to the City and will provide water

to Citrus Ranch from water wells throughout the valley and conveyed through

transmission mainlines. It is anticipated three (3) water storage reservoirs will be

sited within or adjacent to the site. Each reservoir is anticipated to provide

approximately 3 million gallons of storage. The reservoirs are designed to be

located at elevation 300 feet, 465 feet and 540 feet. Final location of the reservoirs

is anticipated to be determined by the final site development plan.

Sewer service is provided by Valley Sanitation District. Construction of “offsite”

transmission lines from the southerly end of the development to the existing Valley

Sanitation District transmission facility located near Van Buren and Golf Center

Parkway is required. Valley Sanitation District has plans to expand the capacity of

the wastewater treatment plant. This expansion allows them to treat effluent from

Citrus Ranch as well as several other projects planned for the area. The internal

sewer collection facilities consist of gravity mains within the development

connecting to the “offsite” facilities near the southerly boundary of the project.

Grading and Drainage

The Citrus Ranch Specific Plan provides for adequate on-site conveyance of

nuisance and stormwater, consistent with local flood-control requirements and is

planned to provide a “balanced” condition for onsite earthwork.


Executive Summary

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Irrigation Water

Irrigation water is required for irrigation of the project common areas, golf course

and neighborhood parks. The Coachella Valley Water District (CVWD) and Desert

Water Agency provide the management of the aquifers in the Coachella Valley.

Based on CVWE polices, the golf course’s primary water source must not be the

domestic water system. Irrigation wells are required for back-up or primary

irrigation sources.

Electric Service

Imperial Irrigation District supplies electrical power to the area in which Citrus

Ranch is located.

Gas

Natural gas for Citrus Ranch project is provided by the Southern California Gas

Company.

Solid Waste

Residents of the City of Indio are required to contract for their own waste pickup

through Waste Management of the Desert.

Schools

Citrus Ranch is not required to provide a school site, although payment of

mitigation fees is required.

Parks and Recreations

Citrus Ranch features on-site recreation facilities including open space, trails,

athletic fields, a private community recreation center, a golf course, and associated

clubhouse.


Executive Summary

Open Space

Consistent with the General Plan, Citrus Ranch contains noteworthy open space in

the foothills and along utility easements. These areas are complemented by planned

recreational trails. The Dillon Road corridor has a planned landscape design that

enhances the views associated in its designation as a “scenic corridor.” Roadways

and golf course holes in the foothills are sensitively designed to minimize impacts of

grading and proposed residential development.

Soils/Agricultural Resources/Water Resources

Citrus Ranch implements findings of geotechnical studies and determinations

contained in the associated Environmental Impact Report. Phase I studies were

prepared and address pervious agricultural and military uses of the property.

Biological Resources/Cultural Resources

Citrus Ranch design responds to identified biological and cultural resources in a

manner consistent with the General Plan.

Energy Conservation/Mineral Resources

Citrus Ranch meets California State energy conservation criteria. The master plan

provides an open space buffer along the northern boundary adjacent to the

neighboring planned sand and gravel operations.

Noise/Air Quality

Citrus Ranch incorporates recommendations from the General Plan in addition to

meeting the requirements identified in the technical reports and Environmental

Impact Report prepared for the project.

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Emergency Preparedness/Hazardous Materials

Citrus Ranch implements recommendations in the General Plan as well as findings

of the associated Environmental Impact Report.

Housing

Citrus Ranch provides a diversity of densities, providing housing for the needs of a

variety of households. The development is designed to appeal to all sectors of the

population, a goal of the General Plan.

Police/Fire

Citrus Ranch responds to concerns of the Indio Police and Fire Department. A fire

station site was designed in consultation with the City of Indio Fire Department for

possible future use.


Executive Summary

Geology and Seismicity Implementation Measures

Citrus Ranch adheres to the requirements identified in the technical reports and

Environmental Impact Report prepared for the project in order to remain consistent

with the General Plan goal of protecting public safety. The site design responds to

identified seismic risk areas.

School District

Desert Sand Unified School District

• Dwight Eisenhower Elementary School (K-5)

State Rank: 3 API: 768

• Desert Ridge Academy (6-8)


• Shadow Hills High School (9-12)


For more information, please refer to page 20 herein.

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Regional Map

Executive Summary

Citrus Ranch

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Local Map

Executive Summary

Citrus Ranch

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Vicinity Map

Executive Summary

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Aerial Map

Executive Summary

Citrus Ranch

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Site Photos

Executive Summary

SouthLooking east across site Looking northeast from Terra Lago towards site

Looking west Looking northeast from western ridge

Looking south toward water tank

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School Information

Executive Summary

Desert Sands Unified School District Website: http://www.dsusd.k12.ca.us

The Desert Sands Unified School District is located in southern portion of the Coachella Valley. DSUSD

consists of nineteen elementary schools, one charter elementary school, six middle schools, one charter

middle school, four comprehensive high schools, two continuation high schools, one alternative education

school, and preschool. The district serves students in portions of Indio, La Quinta, Palm Desert, Indian

Wells, Bermuda Dunes, and Rancho Mirage.

Shadow Hills High School (9-12)


• Shadow Hills High School has a fresh outlook on education

and a curriculum that includes a Robotics Team, Academy

of Technology, and the opportunity to take outside classes to

gain college credits. The Successful Practices Network is a

new program that Shadow Hills is implementing and its main

purpose is to incorporate rigor and relevance to classroom

instruction by introducing a curriculum tied to real-world

examples.

• Shadow Hills High School offers a great philanthropic

opportunity with their “Knights of the Round Table” program ;

a membership program that provides private scholarship

assistance to members of the student body.

Desert Ridge Academy (6-8)


•Desert Ridge Academy seeks to ensure that every student

gains the knowledge and skill set to become a motivated ,

ethical, and productive citizen.

• Students are also offered free membership to After School

Education and Safety (ASES) which is an enrichment

program sponsored by Boys & Girls Clubs of Coachella

Valley. The purpose of this club is to keep students busy

with various afterschool activities during the school year.

The State Rank is determined by a school's API Score in comparison to all other schools in California. (1 is the worst, 10 is the best). An equal number of schools occupy each rank. This rank comes from the 2012 California Academic Performance Index (API) Base report.

The API Score is a number between 200 and 1000 that reflects a school’s or school district’s performance on statewide student assessments .

Source: Desert Sands Unified School District and Land Advisors Organization research

Eisenhower Elementary (K-5)


• Dwight Eisenhower Elementary School fosters high ideals of

education through “positive self-concepts, and promoting

cooperative attitudes among all.” Students are encouraged to

get involved in various school activities to include several

philanthropic institution.

• Dwight Eisenhower Elementary has received perfect

attendance and growth in learning English on the California

Standards Test. There is a huge school involvement in events

such as Read Across America Week, where students are

encouraged to work together to promote the importance of

literacy in young students

Phasing Plan Map

Backbone Cost Assumptions

In-Tract Cost Assumptions

Community Facility District (CFD)

Improvement Cost Summary

Phasing & Cost Projections

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Phasing Plan Map


Phase One:

• Planning Areas: 1, 2, 3, 4, 5, 6, 7, 8, 9A, 9B,

10, 11, 29 (holes 10-18), 31, and 32

• Full improvements to the Primary Community

Entry, Central Roundabout, and the Spine

Road south of the Primary Entrance

• 300-foot-elevation Reservoir and Connections

• Offsite sewer connections

Phase Two:

• Planning Areas: 12, 13, 14, 15, 16, 17A, 17B,

18, 19, 20, 29 (holes 1-9), 33, 35, and 36

(option fire station site)

• Full improvements to the Avenue 38 entry,

and the Spine Road south of the Avenue 38

entry


• Offsite sewer connections

Phase Three:

• Planning Areas: 21, 22, 23, 24, 25, 26, 27, 28,

30 and 34

• Full improvements to the Spine Road north of

the Avenue 38 entry and the Emergency

Access Road


• Offsite Sewer Connections

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Backbone Cost Assumptions

In an appraisal conducted at the peak of the real estate market, Suncal provided the appraisers with a comprehensive cost to complete analysis for the Citrus Ranch project. This estimate

contemplated the full entitlement and horizontal development of the Citrus Ranch project. The cost to complete numbers contained within this report have been copied directly from

Suncal's information and have not been adjusted down to reflect today's lower of entitlement and construction costs. Further, Land Advisors Organization believes the CFD proceeds

today will be lower than originally contemplated by Suncal given today's public improvement financing market

Total Lot Count: 3053

Land Improvement Hard Costs Totals Per Lot

Site prep and grading $ 18,749,500 $ 6,141

Street improvement $ 11,669,028 $ 3,822

Sanitary Sewer $ 3,622,100 $ 1,186

Water Improvements $ 25,704,750 $ 8,420

Storm Drain $ 1,830,600 $ 600

Amenities & Special Construction $ 47,410,152 $ 15,529

Utilities $ 8,232,200 $ 2,696

Total Direct Hard Costs $ 117,218,330 $ 38,394

Contingency at 15% 15% $ 17,454,697 $ 5,717

Total Direct and Contingency $ 134,673,027 $ 44,112

Indirect Costs

Fees, Assessments & Bonds-Map $ 2,979,111 $ 976

Consultants & Engineering $ 16,099,209 $ 5,273

Contingency on Consulting & Admin $ 2,285,576 $ 749

Total Indirect Costs $ 21,363,896 $ 6,998

Total Land Improvement Hard Costs $ 156,036,923 $ 51,109

Indio Southwest Arts Festival


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In-Tract Cost Assumptions

Phase I Phase II Phase III Total Project

# of Lots 951 # of Lots 1005 # of Lots 1097 # of Lots 3053

Totals Per Lot Totals Per Lot Totals Per Lot Totals Per Lot

Site Prep & Grading $ 10,608,892 $ 11,156 $ 5,135,515 $ 5,110 $ - $ - $ 15,744,407 $ 5,157

Street Improvements $ 5,851,928 $ 6,153 $ 7,017,644 $ 6,983 $ 9,784,883 $ 8,920 $ 22,654,455 $ 7,420

Sanitary Sewer $ 1,566,702 $ 1,647 $ 1,960,008 $ 1,950 $ 2,733,556 $ 2,492 $ 6,260,266 $ 2,051

Water Improvements $ 2,433,741 $ 2,559 $ 3,142,039 $ 3,126 $ 4,352,129 $ 3,967 $ 9,927,909 $ 3,252

Storm Drain & Retention $ 387,440 $ 407 $ 641,802 $ 639 $ 906,122 $ 826 $ 1,935,364 $ 634

Amenities & Special Construction $ 163,350 $ 172 $ 321,255 $ 320 $ 304,920 $ 278 $ 789,525 $ 259

Utilities $ 1,133,803 $ 1,192 $ 2,536,300 $ 2,524 $ 3,566,700 $ 3,251 $ 7,236,803 $ 2,370

Contingency $ 1,664,000 $ 1,750 $ 1,037,728 $ 1,033 $ 1,082,415 $ 987 $ 3,784,143 $ 1,239

Fees, Assessments & Bonds - Permit $ 16,847,426 $ 17,715 $ 18,577,482 $ 18,485 $ 20,178,053 $ 18,394 $ 55,602,961 $ 18,213

Consultants and Engineering $ 435,800 $ 458 $ 699,300 $ 696 $ 987,300 $ 900 $ 2,122,400 $ 695

Contingency on Consultants and Admin $ 864,161 $ 909 $ 963,839 $ 959 $ 1,058,268 $ 965 $ 2,886,268 $ 945

Subtotal $ 41,957,243 $ 44,119 $ 42,032,912 $ 41,824 $ 44,954,346 $ 40,979 $ 128,944,501 $ 42,235

Less: Fee Credits $ (3,070,979) $ (3,229) $ (3,281,616) $ (3,265) $ (3,563,945) $ (3,249) $ (9,916,540) $ (3,248)

Less: Prepaid Fees by CFD $ (13,028,993) $ (13,700) $ (14,444,373) $ (14,373)

$ (15,526,858)

$ (14,154) $ (43,000,224) $ (14,085)

Less: Reimbursements $ - $ - $ - $ - $ - $ - $ - $ -

Subtotal $ (16,099,972) $ (16,930) $ (17,725,989) $ (17,638) $ (19,090,803) $ (17,403) $ (52,916,764) $ (17,333)

Totals $ 25,857,271 $ 27,190 $ 24,306,923 $ 24,186 $ 25,863,543 $ 23,577 $ 76,027,737 $ 24,903

Total Project In-Tract Costs $ 76,027,737

Per Lot $ 24,903


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# of Lots 3,053

Total CFD Capacity $ 126,978,000 $ 41,591

Fees

Less: Fee Credits $ - $ -

Less: Prepaid Fees by CFD $ 43,000,224 $ 14,085

Less: Reimbursements $ - $ -

Subtotal $ 43,000,224 $ 14,085

Construction $ - $ -

Reimbursements $ 83,977,776 $ 27,507

Remaining CFD $ - $ -

Net CFD Proceeds By Phase

Phase I Phase II Phase III Total

Proposed CFD Funding $ 42,182,201 $ 34,677,678 $ 50,118,121 $ 126,978,000

Less: Prepaid Fees by CFD $ (13,028,993) $ (14,444,373) $ (15,526,858) $ (43,000,224)

Less: Reimbursements to Others $ - $ - $ - $ -

Net CFD Proceeds $ 29,153,208 $ 20,233,305 $ 34,591,263 $ 83,977,776

Community Facility District (CFD)

Indio Polo Grounds

Indio Polo Grounds


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Improvement Cost Summary

Total Project In-Tract Costs $ 76,027,737 $ 24,903

Total Project Backbone Costs $ 156,036,923 $ 51,109

CFD Proceeds $ (83,977,776) $ (27,507)

Total Project Development Costs and Fees Less CFD Assumptions $ 148,086,884 $ 48,505

Terra Lago – Adjacent Community WorldMark Indio


Community Plans

Conceptual Grading & Drainage Plan

Conceptual Golf Course

Conceptual Community Center Plan

Conceptual Open Space Plan

Conceptual Community & Neighborhood Parks

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Conceptual Grading & Drainage Plan

Community Plans

The conceptual grading and drainage plan illustrates the

conceptual grading and drainage proposed for the project.

The plan is to provide a “balanced” condition for onsite

earthwork. It is assumed that the golf and residential grading

will be performed in one operation.

With minor grading modification, and including subsidence

and shrinkage, the preliminary site grading concept plan

balances the earthwork onsite. The plan identifies flow

directions and major contours and the tentative map and

identifies proposed contours. The grading and drainage plan

is subject to modifications based on the final site plan for

development, including golf course configuration and final

offsite and onsite hydrology conditions.

Final engineering for regional and offsite flood improvements

is planned along the northern border of the site and within

the golf course through the heart of Citrus Ranch may result

in minor adjustments to the outer edges and alignment of

the resulting conveyances. Negotiations with permitting

agencies may also result in modifications to the grading

along these corridors. These adjustments may impact the

configuration of adjacent planning areas.

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Conceptual Golf Course

The Citrus Ranch Golf Course blends natural desert beauty with the challenge of a desert-landscaped course design. Citrus Ranch provides 18 holes of desert

golf totaling 233.1 acres. The golf course meanders through the development and up into the Indio Hills where the fairways and greens make use of the existing

topography and integrate into the desert landscape. A series of lakes and detention basins provide unique views to the golf course while serving to convey

stormwater flows through the development.

Community Plans

30

Conceptual Community Center Plan

A community center provides additional opportunities

for recreation to residents of the development as well

as key-holding guests of the boutique hotel.

Amenities proposed, such as exercise and meeting

rooms, provide facilities for residents of the

community to exercise, play, and hold meetings or

classes in a central location. In addition to the

extensive indoor facilities, outdoor recreational

amenities are provided and include some of the

following:

• Picnic table and barbeque grills

• Shaded benches

• Pool

• Spa/Jacuzzi

• Sports courts

The community center is centrally located and

adjacent to the main entrance to the development,

the community center is the easily accessible social

hub of Citrus Ranch.

Community Plans

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Conceptual Open Space Plan

Citrus Ranch’s open space/recreation plan identifies natural and

active open space areas. Typical open space and recreational

features make up 516.7 acres, or 43%, of Citrus Ranch at the

completion of the project.

Natural undisturbed open space occupies 186.7 acres or 36 percent

of the total open space in the community. The natural open space is

located in the Indio Hills acres of the site. Development of wilderness

trails and scenic backdrop for the community and a challenging trail

experience for residents to enjoy.

Community and neighborhood parks are a major unifying element of

Citrus Ranch as an extensive system of recreation facilities

connected by a network of trails along paseos and major streets. This

system of active and passive parks provides a comprehensive variety

of activities to serve the needs of the community.

Community Plans

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Conceptual Community & Neighborhood Parks

Community and neighborhood pocket parks are primarily passive play

spaces, but each park includes a minimum of three of the following types

of recreational equipment and facilities:

• Tot lots or other children’s play equipment

• Picnic tables and barbeque grill

• Open lay lawn

• Shaded benches

• Formal gardens

• Special interest gardens with interpretive signage

• Public art

• Game tables

• Sports courts

• Other similar amenities

Community Plans

Coachella Valley Overview

City of Indio Overview

Citrus ranch Overview

Market Overview

34

Housing in the Coachella Valley is driven by three segments: Primary Housing, Second Home/Vacation Housing and Retirement Housing.

Primary Housing is affordability driven, comprised of service workers supporting the hospitality, medical, retail and agricultural industries in the Valley. Major employment nodes are

located along the south side of I-10 from Palm Springs to Coachella and are concentrated in the retail, hospitality, and health care sectors. Within a 25-mile radius, there are 125,822

primary jobs, according to the 2010 Census, with about half of these jobs less than 15 miles from the subject site.

Second Home/Vacation Housing is comprised of primarily wealthy households, consisting of families and older couples. The Coachella Valley is a vacation and resort destination within a

two to three hour drive of the greater Southern California area. Southern California is the second largest concentration of population in the United States, with 21.5 million people in six

counties and a large employment base (8.1 million jobs). Direct domestic and international airline flights, a key to pulling second home buyers from outside the Southern California drive-

in area connect Palm Springs Airport to key feeder markets in Northern California, the Northwest and Canada.

Retirement Housing and Active Adult Communities comprise the third segment of the Coachella Valley housing market. This demographic is primarily a mix of "snowbirds" from cold

weather environments (Midwest and Northeast) residing in the Valley during the winter months and local Southern California retirees. This market segment is growing rapidly and

continued to be a strong source of housing demand during the past recession.

Housing in the Coachella Valley is also on the mend as measured by housing price and sales trends, a decline in distressed sales, declining housing inventory, increasing new home

sales and months supply of housing.

Coachella Valley – Overview

Market Overview

Year-to-Date Change in Home Prices Per Sq. Ft.

City April 2013 Median $/SQFT December 2012 Median Price YTD Change 2006 All Time High

La Quinta $195 $142 37.4% $293

Indio $125 $98 29.1% $215

Cathedral City $121 $104 16.5% $237

Desert Hot Springs $79 $68 15.8% $187

Palm Desert $168 $150 12.2% $187

Palm Springs $236 $214 10.4% $319

Coachella $81 $74 9.6% $216

Rancho Mirage $202 $185 9.3% $331

Indian Wells $259 $252 2.5% $359

Source: Market Watch

35

Market Overview



Coachella Valley Price Per Sq. Ft. Monthly Coachella Valley Sales

$90$100$110$120$130$140$150$160$170

Mar

-10

May

-10

Jul-1

0S

ep-1

0N

ov-1

0Ja

n-11

Mar

-11

May

-11

Jul-1

1S

ep-1

1N

ov-1

1Ja

n-12

Mar

-12

May

-12

Jul-1

2S

ep-1

2N

ov-1

2Ja

n-13

Mar

-13

May

-13 0

200

400

600

800

1000

1200

Mar

-10

May

-10

Jul-1

0

Sep-

10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep-

11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-1

2

Sep-

12

Nov

-12

Jan-

13

Mar

-13

May

-13

3 month avg 12 month avg

10%

20%

30%

40%

50%

60%

70%

Mar

-10

May

-10

Jul-1

0Se

p-10

Nov

-10

Jan-

11M

ar-1

1M

ay-1

1Ju

l-11

Sep-

11N

ov-1

1Ja

n-12

Mar

-12

May

-12

Jul-1

2Se

p-12

Nov

-12

Jan-

13M

ar-1

3M

ay-1

3

Year Ago

Coachella Valley Distressed SalesREO and Short Sales

36

Market Overview



Coachella Valley Months of Supply

2,0002,5003,0003,5004,0004,5005,0005,5006,0006,500

Jan-

10M

ar-1

0M

ay-1

0Ju

l-10

Sep-

10No

v-10

Jan-

11M

ar-1

1M

ay-1

1Ju

l-11

Sep-

11No

v-11

Jan-

12M

ar-1

2M

ay-1

2Ju

l-12

Sep-

12No

v-12

Jan-

13M

ar-1

3M

ay-1

30.01.02.03.04.05.06.07.08.09.0

Months

Coachella Valley Existing Home Sales2012 Based on First Six Months

Coachella Valley New Home Sales2012 Based on First Six Months

Inventory of Homes for SaleJune 1st – Coachella valley

5,14

1

4,45

1 5,38

7 6,12

9

7,57

4

6,69

5

5,24

0

4,38

9

5,70

5

7,47

0

7,23

1 7,76

3

8,03

2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Year

2,19

0

2,03

0 2,67

9

4,06

5

5,53

3

5,49

0

4,91

3

2,77

1

1,49

8

840

548

470

470

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Year

37

The Indio housing market mirrors the positive housing outlook of the Coachella Valley.

Homebuilders recognize the favorable housing indicators and have started buying lots in their preferred North Indio submarket. In June 2012 there were approximately 2,700 improved

lots in Indio. In the last six months of 2012 homebuilders including DR Horton, Lennar, K Hovnanian, Shea Active Adult, and Woodside Homes purchased about 2,100 of these lots.

City of Indio – Overview

Market Overview


Months of Supply by City

0

2

4

6

8

10

12

14

16

Months

June 1st 2013 Year Ago

370

500

1,000

1,500

2,000

2,500

3,000

June 2012 Today

2,700 Improved Lots

702 Improved lots NOT held by a Builder

Decreased 75%

38


Market Overview


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Indio La Quinta Palm Desert Palm Springs Cathedral City Desert HotSprings

Rancho Mirage Coachella Indian Wells

2011 2012

Coachella Valley Existing Home Sales2012 Based on First Six Months

0

20

40

60

80

100

120

140

160

180

200

Indio La Quinta Palm Springs Palm Desert Cathedral City Coachella Rancho Mirage Indian Wells Desert HotSprings

2011 2012

Coachella Valley New Home Sales2012 Based on First Six Months

39

Indio finished lot values peaked in 2005 when lot values reached $175,000 for a standard lot and up to $235,000 for lots fronting on the nearby Terra Lago Golf Course fairway. Current

finished lot market value is likely just north of $100,000 with significant appreciation expected given the lack of supply and improving demand.


Market Overview

39

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

$225,000

$250,000

$275,000

$300,000

$325,000

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

$225,000

$250,000

$275,000

$300,000

$325,000

Cathedral City Coachella Desert Hot Springs Indian Wells Indio N. Indio S. Indio West

S. Indio East La Quinta Palm Desert Palm Springs N. Palm Springs S. Palm Springs Rancho Mirage

Market Peak 2005

40

There is a good opportunity for market success of Citrus Ranch with an estimated entry of land sales in 2015 given the lack of current supply in the market, builder interest in the area

and forecasted increases in both price and sale volume as the market improves. The current plan offers a wide variety of lot/homes segments including single family detached lots from

4,500 to 9,000 square feet, cluster homes and townhomes. These homes will attract a variety of buyer profiles ranging from move-down, retiree, families and second home buyers

attracted to the north Indio area. This is based on a number of positive factors, including:

• The Subject is located at the foothills in north Indio and features mountain and open space orientations along with the proximity to newer retail/commercial centers in north Indio.

• The Subject offers an attractive new gated master-planned community positioned at a premium to slightly older neighborhood resales due to the foothill location, new home premium,

and integrated amenities and as an affordable alternative to the higher priced Palm Desert area.

• Improving economic and housing market conditions, such as annual regional job growth of 1.9% in 2013; further employment growth is projected over the next five years.

• New home sales volume is expected to increase 8% in 2013 and 18% in 2014. The median new home price is expected to rise 12% in 2014.

• Resale volume has been increasing and is forecasted to peak in 2015-2016; resale home values are projected to increase over the next five year period.

• Very low resale inventory (three months).

• There is an opportunity to bring in a compelling new master-planned community with mountain and open space orientations that offers more than the area legacy communities which

typically feature only neighborhood parks and walking trails. A new large master-planned community featuring an attractive community setting and amenities (community pool/spa,

clubhouse, parks, and golf, etc.) with segmented products will achieve a premium in comparison to the area competition.

Citrus Ranch – Overview

Market Overview

Offering Overview

Offering Guidelines

42

Letter of Intent

The Letter of Intent should include the following:

• Purchase Price: No asking price has been established for the subject Property.

• Potential Offering Structure: The Owner is primarily interested in seeing two types of offers; (i) All cash at the close of escrow, and/or (ii) Joint venture proposals.

The joint venture (“JV”) proposals should include a proforma that includes an initial payment of 20% to 30% of the asset’s current value to the Owner upon the close

of escrow. Additionally, the proposal should include anticipated profit potential to the Owner; time required to realize said profits; and how the prospective buyer

intends to fund and process the remaining entitlements and development.

• Escrow Deposit: Upon the execution of the Purchase Agreement, Buyer shall deposit into escrow with First American Title Insurance Company a refundable deposit

in an amount of $100,000 (the “Refundable Deposit”).

• Due Diligence Period: Buyer will be given sixty (60) days following execution of the Purchase Agreement to complete all due diligence investigations with respect to

the Property. Upon the expiration of the due diligence period, and if Buyer shall determine to proceed with the transaction, Buyer will be required to deposit additional

funds into escrow which, when combined with the Refundable Deposit, shall cause the total amount of Buyer’s funds held in escrow to equal $250,000, which amount

shall constitute the entire deposit and shall be non-refundable but applicable to the Purchase Price.

• Close of Escrow: Escrow shall close within thirty (30) days of the expiration of the Due Diligence Period.

Offering Guidelines

Selection Process

The ultimate purchaser will be selected by Owner on the basis of a number of factors, including but not limited to, the price and terms of the initial purchase offer, Owner’s

satisfaction with said prospective purchaser’s development plans, experience and track record with developing similar property, experience with relevant or similar regulatory

agencies, access to capital and other financing sources, and the proven ability to close on a timely basis. Owner will endeavor, but is not obligated, to respond to all prospective

purchasers who submit offers. Offers should be submitted in accordance with the Offering Guidelines hereinafter contained. All prospective offers should include the following

information:

• Qualifications and development experience.

• Ownership structure and capitalization.

• Financial capacity and/or funding sources.

Offering Overview

43

Offering Guidelines

Offering Overview

Owner Disclosures

This Marketing Package and any additional materials provided by Owner are for convenience only and may not be relied upon by prospective purchasers without their

independently verifying the information presented. Prospective purchasers are strongly encouraged to independently verify all of the information contained herein and in any

supplements or exhibits and to conduct their own due diligence.

Nothing contained herein should be construed as an offer or other binding commitment to sell the Property, and Owner reserves the right to withdraw the Property from the market,

not to negotiate with any prospective purchaser, or to accept or reject any bid, at any time and for any or no reason, in Owner’s sole and absolute discretion. In addition, the

information contained herein related to the Property is merely a partial summary of the information available, and prospective purchasers are encouraged to conduct a full and

thorough due diligence investigation. The Property is being offered on an unqualified “as is/where is” basis, and the Purchase Agreement will include a comprehensive disclaimer

of representations and warranties.

Brokerage Commission/Disclosures

A commission to Land Advisors will be paid by Owner pursuant to the terms of Owner’s listing agreement therewith. Any other commissions must be paid by the prospective

Buyer. All communications and inquiries regarding the Property should be directed to the individuals listed on the back page of this Marketing Brochure.

Please be advised, Buyer acknowledges that Park Place Partners, Inc. d/b/a Land Advisors Organization, may (1) act as an agent for more than one prospective Buyer on the

subject property and/or (2) act as the agent for both the Buyer and Seller on the subject property. Any prospective Buyer requesting Land Advisors to submit an offer on its behalf

acknowledges the foregoing disclosures and agrees to the described agency relationships with other prospective Buyers.

Bid Due Date: Submit offer as soon as possible

Offers should be directed to Stone James at [email protected] at (760) 219-7227

and/or David Landes at [email protected] at (858) 692-8626

44

Stone James MREDMarketing Consultant CA DRE #00654419

74-130 Country Club Drive, suite 201Palm Desert, CA 92260

T. [email protected]

David LandesMarketing Consultant CA DRE #011067749707 Waples Street

San Diego, CA 92121

T. [email protected]

Terra Lago Golf Course

00 - citrus ranch (indio) marketing...

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