The City of Salinas (the “City”) established the Harden Ranch Maintenance District to provide a source of funding for the on-going maintenance of the amenities that were installed for the benefit of the parcels within the District. The district was created under Article II, Chapter 21C of the City of Salinas Municipal Code and the Landscaping and Lighting Act of 1972 of the State of California.

The assessments provide for the maintenance and operation of and the furnishing of services and materials for street lighting facilities, masonry walls, detention basins, open space areas, landscaping, irrigation systems, bike paths, pedestrian pathways, slope maintenance, graffiti abatement, entry monuments, landscaping which includes trees, shrubs, grass, and other ornamental vegetation, and appurtenant facilities, including irrigation systems and drainage devices within the District.

The District was created in 2004, after the passage of Proposition 218 in 1996, which established Article XIIID of the State Constitution and the District is subject to the legal requirements of Proposition 218. The District assessments include built‐in inflationary factor based on the annual change in the Consumer Price Index (“CPI”).

The District assessments provide a dedicated source of funding for the maintenance and operation of the District improvements, including landscaping along the street corridors within the Development and along portions of Sconberg Parkway, Freedom Parkway and Williams Road that are directly adjacent to the Development. Other District improvements include local street lighting (including energy costs), routine street maintenance and associated appurtenances located within the public right‐of‐ways. All of the District improvements are allowed under the Salinas Municipal Code and the Lighting and Landscape Act of 1982 (the"Act").