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Approval of Ground Lease Agreement with Rancho Santiago Community College District October 15, 2019 Page 2 term continuation of the College and to facilitate substantial investment by the College, the City began the process required by NPS to secure a long-term lease. That process required the replacement of equivalent park land. During the license agreement extensions, the College and City entered into two separate reimbursement agreements in which the College would reimburse the City up to $634,000 for the needed land conversion to meet the NPS's requirements. The replacement of the equivalent parkland was the final step to complete the documentation for submittal to NPS, if approved, the deed conditions for the land upon which the Center is located would be transferred to the new replacement parks sites. The conversion involves the construction and operation of replacement parklands in lieu of 2.6- acre, the size of the site leased to Rancho Santiago Community College District in Centennial Park. The replacement parklands include three park sites, the 6th Street Site, Raitt Street Site, and McFadden Site/Pacific Electric Park. The City constructed Pacific Electric Park on the McFadden Site, and the Pacific Electric Park opened in January 2018. Therefore, the remaining work involves construction and operation of two replacement parks on the 6th Street Site and the Raitt Street Site in the City of Santa Ana. Concurrent with this process the College is taking steps to undertake a bond issue of which a portion of the proceeds, approximately $50 million would be invested in the education center at Centennial Park. Due to the short timeframe to place the bond issue out for consideration to the voters, the College is seeking the finalization of a long term lease. The terms of the lease would be similar to the terms of the current and previous license agreements, with the following distinct differences: The 85-year lease term would be conditioned upon the NPS approval of the lease or of a land conversion related to the deed restrictions. The lease term would also be contingent on substantial capital investment commenced within a specified time period. The new campus will provide for a community benefit in the form of a community meeting room, a branch library and classrooms. A one-time capital contribution of no less than one million ($1,000,000). The share of operation and maintenance costs of common area will increase from 7.4% to 25%. 75B-2