ORDINANCE NO. 510 THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BEL AIRE, KANSAS:

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1 (Published in The Ark Valley News on July, 2012.) ORDINANCE NO. 510 S-I-1 GILMORE & BELL, P.C. 07/11/2012 AN ORDINANCE CREATING A COMMUNITY IMPROVEMENT DISTRICT IN THE CITY OF BEL AIRE, KANSAS; AUTHORIZING CERTAIN PROJECTS THEREIN; APPROVING THE ESTIMATED COSTS OF SUCH PROJECTS; CONTAINING THE LEGAL DESCRIPTION AND MAP OF THE BOUNDARIES OF THE DISTRICT; LEVYING A COMMUNITY IMPROVEMENT DISTRICT SALES TAX; AND APPROVING THE METHOD OF FINANCING THE PROJECTS. WHEREAS, the governing body of the City of Bel Aire, Kansas (the "City"), has heretofore received a Petition pursuant to K.S.A. 12-6a26 et seq. (the "Act") and adopted Resolution No of the City, containing the time and place of a public hearing on the advisability of creating a community improvement district (the "District"), the general nature of proposed project within the District (the Project ), the estimated costs of the Project, the proposed method of financing the Project, the proposed amount a sales tax within the District, the proposed method of assessment, if any, and a map and legal description of the proposed District; and WHEREAS, Resolution No was published twice in The Ark Valley News, the official City newspaper, on April 26, 2012 and May 3, 2012; and WHEREAS, the governing body has heretofore on May 17, 2012 and June 5, 2012 conducted a public hearing on advisability of creating the District; and WHEREAS, the governing body hereby finds and determines it to be advisable to adopt this Ordinance to create the District, authorize the Project therein, approve the estimated costs of such improvement Project, contain the legal description and map of the boundaries of the District, levy a community improvement district sales tax and approve the method of financing the improvement Project, all in accordance with the provisions of the Act. THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BEL AIRE, KANSAS: SECTION 1. Creation of Community Improvement District; Legal Description and Map. The governing body hereby finds and determines that it is advisable to create, in accordance with the provisions of the Act, the District. The legal description of the District is as follows: Beginning at the northwest corner of Section 17, Township 26 South, Range 2 East of the 6 th P.M., Sedgwick County, Kansas; Thence east, along the north line of said Section 17 to the northeast corner of the west ½ of the northeast quarter of said Section 17; Thence south, along the east line of the west ½ of the northeast quarter of said Section 17 to the southeast corner of the west ½ of the northeast quarter of said Section 17; Thence west, along the south line of the west ½ of the northeast quarter of said Section 17 to a point feet east of the southwest corner of the northwest quarter of said Section 17;

2 Thence south, to a point on the south line of the southwest quarter of said Section 17, said point being feet east of the southwest corner of the southwest quarter of said Section 17; Thence continuing south to a point on the south right-of-way line of the 53 rd Street North, said point being feet east of the west line and 60 feet south of the north line of northwest quarter of Section 20, Township 26 South, Range 2 East of the 6 th P.M., Sedgwick County, Kansas; Thence west, along said south right-of-way line of 53 rd Street North to the northeast corner of Lot 25, Block 6, Rock Spring, an Addition to Bel Aire, Sedgwick County, Kansas; Thence southeasterly, southerly and southwesterly, along the east line of said Lot 25 to the southeast corner of said Lot 25; Thence west, along the south line of said Lot 25 and as extend to the westerly most east right of way line of Rock Road; Thence south, along the east right-of-way line of said Rock Road to the north line of the south half of the northwest quarter of said Section 20; Thence east, along the north line of the south half of the northwest quarter of said Section 20 to the northeast corner of the south half of the northwest quarter of said Section 20; Thence south, along the east line of the south half of the northwest quarter of said Section 20 to the southeast corner of the south half of the northwest quarter of said Section 20; Thence west, along the south line of the south half of the northwest quarter of said Section 20 to the east right of way line of Rock Road; Thence south, along the east right-of-way line of Rock Road to a point feet south of the north line of the southwest quarter of said Section 20; Thence west to a point on the west right-of-way line of Rock Road, said point being the southeast corner of Reserve H, in Elk Creek Addition, an Addition to Bel Aire, Sedgwick County, Kansas; Thence west, along the south line of said Reserve H to the southwest corner of said Reserve H; Thence north along the west line of said Reserve H to a point of intersection with the northerly most east corner of Lot 10, Block 9, in said Elk Creek Addition; Thence northwesterly along the northerly line of said Block 9 to the northern most corner of Lot 1, Block 9 in said Elk Creek Addition, said northern most corner of Lot 1, Block 9 lying on the southeasterly right-of-way line of Prestwick Avenue as platted in Central Park Addition, Bel Aire, Sedgwick County, Kansas; Thence northwesterly to the southerly most corner of Lot 6, Block E, Central Park 4 th Addition, said southerly most corner being on the northwesterly right-of-way line of said Prestwick Avenue; Thence northeasterly along the northwesterly right-of-way line of said Prestwick Avenue to the southerly corner of Lot 1, Block 18 in said Central Park Addition; Thence continuing northeasterly, along the northwesterly line of said Prestwick Avenue to a point of curvature of a curve to the left in said Prestwick right-of-way; Thence continuing northeasterly and northwesterly, along said curve to the left to the point of tangent of said curve, said point being on the southwesterly right-of-way line of Central Park Avenue as platted in said Central Park Addition; Thence northwesterly, along said Central Park Avenue right-of-way to the point of curvature of a curve to the left in said right of way; Thence continuing northwesterly and southwesterly, along, said curve to the left to a point of tangency; Thence continuing southwesterly, along said Central Park Avenue right-of-way line to the northwesterly most corner of Lot 1, Block 12 in said Central Park Addition; Thence northwesterly to the southeasterly most corner of Reserve C as platted in Central Park 3 rd Addition, Bel Aire, Sedgwick County, Kansas, said southeasterly corner being on the northwesterly right-of-way line for said Central Park Avenue; Thence northwesterly, westerly and southwesterly along the northerly line of said Reserve C to the westerly most northwest corner of said Reserve C, said point also being the southwest corner of Lot 8, Block A, in said Central Park 3 rd Addition; Thence north, along the west line of said Lot 8, Block A to the northwest corner of said Lot 8, said point being on the southerly right-of-way line of Hampton Street as platted in said Central Park 3 rd Addition; S-I-2

3 Thence north to the southwest corner of Lot 18, Block C, in said Central Park 3 rd Addition, said southwest corner also being the southeast corner of Reserve B in said Central Park 3 rd Addition and on the northerly rightof-way line of said Hampton Street; Thence north, along the east line of said Reserve B to the northeast corner of said Reserve B said point being on the south right-of-way line of Pleasant Ridge St as platted in said Central Park 3 rd Addition; Thence north to the southeast corner of Reserve A as platted in said Central Park 3 rd Addition and being on the north right-of-way line of said Pleasant Ridge Street; Thence north, along the east line of said Reserve A to the northeast corner of said Reserve A, said northeast corner being on the south right-of-way line of 53 rd Street North; Thence north to the north right of way line of said 53 rd Street North; Thence east, along the north line of said 53 rd Street North to the west right-of-way line of Rock Road; Thence north, along the west right-of-way line of Rock Road to the south right-of-way line of K-254 Highway; Thence continuing north to the north line of the northeast quarter of Section 18, Township 26 South, Range 2 East of the 6 th P.M., Sedgwick County, Kansas; Thence east, along the north line of the northeast quarter of said Section 18 to the northeast corner of the northeast quarter ofsaid Section 18 and the point of beginning. A map of the property contained in the District is set forth on Schedule I attached hereto and incorporated by reference herein. SECTION 2. Authorization of Community Improvement District Project; Estimated Costs. below: The governing body hereby authorizes the Project within the District, as more fully described (A) Within the District, construction of the following: Mixed use development that includes commercial, retail, entertainment, hospitality, residential and other uses (the CID Facilities ) (B) Within the District, construction of the following to serve the CID Facilities: (1) sidewalks, streets, roads, interchanges, highway access roads, intersections, parking lots, traffic signs and signals, utilities, pedestrian amenities, drainage systems, water systems, storm systems, sewer systems, lift stations, underground gas, heating and electrical services and connections located within or without the public right-of-way, water mains and extensions and other site improvements; (2) streetscape, lighting, street light fixtures, street light connections, street light facilities, benches or other seating furniture, trash receptacles, marquees, awnings, canopies, walls and barriers; (3) parks, lawns, trees and other landscape; (4) paintings, murals, display cases, sculptures, fountains and other cultural amenities; (C) Within the District, and in connection with the operation of the CID Facilities, to operate or to contract for the provision of music, news, child-care, or parking lots or garages, and buses, minibuses or other modes of transportation; S-I-3

4 (D) Within the District, and in connection with the operation of the CID Facilities, to provide or contract for the provision of security personnel, equipment or facilities for the protection of property and persons; (E) Within the District, and in connection with the operation of the CID Facilities, to provide or contract for cleaning, maintenance and other services to public or private property; (F) Within the District, and in connection with the operation of the CID Facilities, to produce and promote any tourism, recreational or cultural activity or special event, including, but not limited to, advertising, decoration of any public place in the district, promotion of such activity and special events and furnishing music in any public place; (G) Within the District, and in connection with the operation of the CID Facilities, to support business activity and economic development, including, but not limited to, the promotion of business activity, development and retention and the recruitment of developers and business; (H) Within the District, and in connection with the operation of the CID Facilities, to provide or support training programs for employees of businesses; and (I) Within the District, and in connection with the operation of the CID Facilities, to contract for or conduct economic impact, planning, marketing or other studies. The estimated costs of the Project are $300,000,000. SECTION 3. Method of Financing. (a) The costs of the proposed Project proposed to be financed by Pay-as-you-go financing, as defined in the Act, and paid from the fund of the City identified in K.S.A. 12-6a34. It is estimated that the City will receive $4,000,000 in annual CID Sales Tax. The amount to be paid to the developers of the Project, or their successor(s), will be determined through a separate agreement. (b) District. There will be no special assessments levied on property within the boundaries of the SECTION 4. Levy of Sales Tax. In order to provide funds to finance the costs of the Project, the levy, in accordance the provisions of the Act, of a community improvement district sales tax within the District, in an amount of 2% on the selling of tangible personal property at retail or rendering or furnishing services within the District (the "CID Sales Tax"), is authorized and directed. It is proposed that the CID Sales Tax will expire 22 years from the date its collection begins, which is anticipated to be January 1, The CID Sales Tax shall be administered, collected and subject to the provisions of K.S.A et seq. The City Clerk, upon passage of this Ordinance, shall provide a certified copy of the same to the State Director of Taxation pursuant to K.S.A SECTION 5. Effective Date. This Ordinance shall take effect and be in full force from and after its adoption by the governing body of the City and publication in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] S-I-4

5 PASSED by the governing body of the City of Bel Aire, Kansas, on July 17, 2012, and APPROVED AND SIGNED by the Mayor. (Seal) ATTEST: Mayor City Clerk CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of Ordinance No. of the City of Bel Aire, Kansas adopted by the governing body on July 17, 2012, as the same appears of record in my office, and that it was published in TheArk Valley News on July, DATED: July, City Clerk SCHEDULE I - MAP OF COMMUNITY IMPROVEMENT DISTRICT S-I-5

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