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Todays Agenda ......_ ,,, .. ... 1 ., ____ .... .., . • • Financing : 00 i _, , ,. , _ 111 1 • - Introduction a i r , ..- ,_ .0 _. ... 1," •• 4 . . i . # -., R• 7; . • - Introduction • 1 4i 0 1 _. • Land lease +-P 4 v . - ,Hp . ' i_ r_ F r • � min ' � � " _ ,y e _ Iv. • : r � , _ -_ _ ,.. • r Q &A ._• . • At ` . ; 11 . ... , 4. I P. II 1 , . _. ,. e I or f i _ 1 . _ . , . , i r.. . ; • ... \ ... _ ih I I . .UD+P ,....v _ - -'--mil Alternative Financing Capital Stack Traditional Equity Land Lease EB5 Up to 75 ili UDIP 3 C - PACE Basics ► A loan program targeting clean energy and resiliency- related improvements in commercial buildings . ► 40+ C - PACE programs throughout more than 30 states . ► Private lenders are the source of capital . No public dollars . The financing is similar to a second mortgage with a few key differences : 1 . The repayment is collected as an addition to the property tax payment on the property ; 2 . The loan is senior to any other mortgage on the property ; 3 . In the event of a change in ownership or some event of default : the C- Pace loan does not retire , but rather stays attached to the property and continues to be paid by the next owner ; 4 . These factors reduce the risk of the loan and allow the private lender to : lend for a longer term , lend at a lower interest rate , and lend a larger proportion of the total project cost . UDIP C- PACE 4 iillJ aiinrvce National Market Data - through_2024 CUMULATIVE C—PACE INVESTMENT, MIA {200e9—pEC. 2024) Commercial 10,000 9,U00 MOO 7,000 $ 9 I 7 I 7 3 i 5 8 1 fi,fl00 investment (MM) commercial projects 5,fl00 4,U00 3,flQ0 2,fl00 I 2 2 if 0 0 0 job-years created taoo 0 je ryoip rt,o r6i ela e el...6 ev<pLi 'tzp e 'e, 'LaaPi s 1 .r ib 'ya dijk UDIP rTPACE 5 'ilk.' ALLIANCE Typical _____. 1-IVAC 1 1lighting Envelope Roofirigllnsulation I �� Fl LI - J. 1 1 -� I •"1 : ---1, • .k -, ,, _.. . • -. .R..4.74-t i iiiiiew-- ... ... . . • ..j. I I _VI= ' - : 1 . I -....,Aiii L . F N 1.. Ir Jr -I- , si aMINM6 - i i -41 Lkt- r _ =_..._.,___ , , IIII - _. - .1 _my Elevators Waterima. Water Fixtures Irrigation 1 : - -qt.- .- 1 -6J A • al i • il 1 IITI 11 Id 111( 1 11 . . :. ! 7'4 . - -.4 '. .... -. T ti : - r _ \ i r r111)4AL ' Cogenerati I ' Seismic Windstorm - 44, ... ••F gir • IP ir 11k- • •.=--.. .. ' 1101M.11.11111r • _ •te S ' ' ' _ - . lifi S . ' trS.. IL. P.... -4; / . .t._ wilinniiiiiMP' williiie'r '9 . ., Nipkiii. •Illiusigik. '.I E...j . , . ir.. .,..t.....L . . _ , rEPACE 6 'ilk.' ALLIANCE How is 0 - PACE financing implemented and operated ? 1 . A state enacts a statute authorizing the C - PACE program . C - PACE Alliance can provide examples from other states . 2 . Local governments in the state adopt an ordinance or resolution to participate in a statewide program ( if available ) or to administer the program itself (or contract with a private third party to administer the program ) . 3 . Uniform program documents across local governments in the state will save time and expenses . C - PACE Alliance can provide model documents used in other states . 4 . Property owners and developers work with C - PACE capital providers and the program administrator on individual projects . AF in UD_I P - PACE7 LIICJ ai � inrvce Active iv WA e9.4 ill '.`T N D di1111111L. OR MN I D al SD WI nnA MI filioolk RI IA PA low J NE OH PrPFV4 mordillift , DE CO Y ivl D K AZ A AL A New -PACE TX LA - statute, no closed transactions AK FL Active C-PACE % program with completed 7, a \ . transactions 4 INI. HI ,D, UD+P r - PACE 8 iii1IALLIANCE What is the EEC - 5 Program ? .._ U . S . immigration program administered by U . S . Citizenship and Immigration Services ( USCIS ) . Offers lawful permanent residency to foreign investors who : ❖ Invest a minimum of $800 , 000 in Targeted Employment Areas (TEAs ) ❖ Create or preserve at least 10 U . S . jobs ► Promotes foreign direct investment and job creation . UDIP EB - 5 9 American United EB - 5 Regional Center ( AU RC ) Designated by USCIS in 2011 , the 1st regional center approved in Oregon . ► Authorized geographic coverage has expanded to Washington , California . AURC investment management team has 30 + years experience in commercial real estate investment on Western coast . Sponsored 5 projects ( EB - 5 investments range $ 5 . 5m - $66m ) in the sectors of hospitality, senior housing , mix - use development , with 4 being built and job creation completed , 1 in progress . UDIP EB - 5 io Prior Projects with Naito Development Hampton Inn & Suites Hotel Hood River, OR EB - 5 Investment : $ 6 . 8m Job creation completed , EB - 5 investment fully repaid ► The Nichols Building Hood River, OR EB - 5 Investment : $ 5 . 2m Job creation completed , EB - 5 investment fully repaid The Hoxton Portland Portland , OR EB - 5 Investment : $ 5 . 5m Job creation completed , EB - 5 investment fully repaid UDIP EB - 5 ii Land Lease ► Acquisition of property in October 2025 . City reserves right to repurchase at termination of DDA . Development entity leases back property. ► Land - ownership converts to equity ownership in project at TCO . UDIP 12 Timeline ..._. Action Timeline Status Explore New Capital Alternatives Sep 2024 Done Interview EB-5 Sponsors / Select Jan 2025 Done Investigate C- PACE Feasibility Mar 2025 Done Select C- PACE Lender Oct 2025 Ongoing Draft Hotel Partnership Agreement July 2025 Done Draft EB-5 Offering Docs July 2025 Done Close on Land Oct 2025 , Legal Agreements in Feb 2026 Process C- PACE Adoption (target) Dec 2025 Requested EB-5 Capital Raise July 2025 - Eminent Prospective Ground Breaking ( Hotel) Feb 2025 - Dependent on EB-5 and June 2025 C- PACE Prospective Ground Breaking (Apartments) Apr 2025 - Dependent on EB-5 and June 2025 C- PACE ii 41. 11 UDIP 13 . 7:IL..r - il_ • It.1 ----,..._ • 11 • i , 1 A� ::::. 1 _ : : . 4..11;11114. 1•I • V ••. r r ti ,1 r I I. I I.II1` • •' • ti 1 Ail: 1 •� .rl 1- LI�''•'��4{• ..• _ �' _ • .�I 'tip• • 106. I , ,y. ti 7 :1,.�.? ; ti ' tit _ ii • • ' I�. '4 I ;r I - 1 • 1 + • r ti JI • • . 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