Land and Bella La Paz

Some will have the opportunity to purchase 40 acre parcels at Bella La Paz. Here are a few ideas to consider regarding the rights accruing to the 40 acre buyers. The idea here is to get us thinking about how to approach these items which are at the core of our value proposition to the 40 acre buyers. I am trying to refer to rights and benefits which will exist at close of escrow or soon thereafter – and not value enhancing services which we will provide to them in the future.

RIGHTS AND BENEFITS WHICH WILL BE RECEIVED BY THE BUYERS OF LAND WITHIN THE COMMUNITY

The benefit of the fact that the property is designated RURAL COMMUNITY under the La Paz County Comprehensive Plan, as amended during November and December, 2006. The RURAL COMMUNITY designation allows the La Paz County Board of Supervisors to zone a property with a density of up to 5 dwelling units per acre.

All landowners within Bella La Paz will have the right to apply for residential zoning with five 5 dwelling units per acre density.

(We need to figure out a way to speak to the fact that the Pepper and the 180 are not designated Rural Community and can be zoned to a maximum density of one unit per 2.5 acres. I would recommend that we consider applying for Rural Community on those parcels. In the meantime, we might refer to them as the “suburban ranch” areas of the community. Suburban Ranch is, in fact, the zoning category which would apply.)

Property owners will have the right to withdraw groundwater in amounts which are based upon two factors – the amount of water which has been allocated to the Bella La Paz community by the Arizona Department of Water Resources and the acreage of the owner’s property as a percentage of the total Bella La Paz acreage which is 973.

(This is just an idea of the content of this statement. The wording needs to be improved. The statement can be changed when we have the approval from ADWR and can then state that the groundwater withdrawal by each owner can be sufficient to serve 5 dwelling units per acre.)

(For the sake of simplicity, I would suggest that we inform prospective buyers that all of the property within Sections 6, 7 and 12 is planned for residential use - and that we place all of the commercial acreage in the 120. In this way, we will avoid having to deal with the differing amounts of groundwater use between residential and commercial. If commercial becomes viable in those areas in the future, the problem can be dealt with at that time.)

The right, but not the obligation, to cooperate with the Bella La Paz developer as the community develops over time.