9.65 ACRES AVAILABLE Flyer.pdfH a r d w a r e P i e r 1 R o s s S u b j e c t P r o p e r t y R I t e A i d D o l l a r T r e e W a l - M a r t ... Lennox Plaza, Coming Soon New retail

9.65 ACRES AVAILABLEHESPERIA, CA

TEL 415.438.2144FAX 415.956.2003

33 New Montgomery Street, Suite 1230San Francisco, CA 94105

TEL 415.765.6900

www.starboardnet .com

Louis [email protected]

Subject Property

CONTENTS

I. Property Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Executive Summary

II. Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Hesperia MapArea MapHesperia, CASan Bernardino County

III. Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Area RetailersSales ComparableRetail Vacancy RatesDemographics

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9.65 ACRES FOR SALEHESPERIA, CA

The information has been secured by Starboard TCN from sources believed to be reliable. It is not guaranteed, however, and should be verified prior to consummating any transaction

Property Summary

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Property Summary

LOT SIZE: 9.54 acres

APN: 0405-062-56

LEGAL DESCRIPTION: Lot 56, Hesperia, CA, San Bernardino County

LOCATION: Located conveniently on Main Street just 2,000 feetfrom the on-ramp to Route 15, Mojave Freeway(Historic Route 66)

LAND TYPE: 03 — Commercial

DISTRICT: Victorville

Location

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Hesperia Map

Subject Property

Location

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Area Map

HESPERIA, CALIFORNIAThe City of Hesperia is part of San Bernardino County, California located inthe Mojave Desert 75 miles (121 km) northeast of Los Angeles. The localsrefer to the surrounding area as the High Desert. As of the 2000 census, thecity had a total population of 62,582. In 2006, the Hesperia municipalgovernment estimated the population at 80,000.

Hesperia has its own man-made lake on the south-eastern edge of the town.This lake is where various town activities are held, including fourth of Julyactivities and Hesperia day activities. Also camping and fishing arepermitted here, as well as various junior leagues for sports.

Hesperia has a golf course that runs the rift between the 'mesa' and theadjoining land on the other side. Here there is also the Hesperia countryclub. The golf course is open to the public however, the county club amenitiesare reserved for members only.

On the southern tip of Hesperia, there are several miles of barren desert. Tothe east of Hesperia, the Mojave river runs from south to north (however, thisriver is usually a dry riverbed until Hesperia experiences heavy rain, whichis once in a blue moon). To the North Hesperia is bordered by the city ofVictorville, and to the east it is bordered by the city of Apple Valley.

Location

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SAN BERNARDINO COUNTY, CALIFORNIASan Bernardino County is the largest county in the contiguous United States byarea, containing more land than each of nine states. The county is larger in areathan the states of Massachusetts, Connecticut, Rhode Island, and Delawarecombined. Any of those states could be replaced in the list by New Jersey,Vermont, or New Hampshire.

Coconino County, Arizona, is second, Nye County, Nevada, is third, and ElkoCounty, Nevada is fourth. On the other hand, the Yukon-Koyukuk Census Area,Alaska, the largest county-equivalent in the country, is over seven times the size.

Located in the southeast of the state of California, the deserts and mountains ofthis vast county stretch from the outskirts of the densely populated Riverside-SanBernardino Area to the Nevada border and the Colorado River. The fastgrowing county had a 2007 population estimate by the California Departmentof Finance was 2,028,013 (12th in the country but only 4th in the state), largelylocated in its more populated southwestern portions. The county seat is SanBernardino. The county records are located in downtown San Bernardino.Itssouthwestern portions (the more urbanized part of San Bernardino County) areconsidered to be part of the Inland Empire region of Southern California, abicounty area.

Location

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AREA RETAILERS

Location

6



MarketHome DepotWal-Mart

Target

Sizzlers

El Pollo Loco

Pizza Hut

Carl’s JrJack in the Box

Carl’s Jr

Del Taco

Panda Express

Hardware

Pier 1 Ross

Subject Property RIte Aid

Dollar Tree

Wal-Mart

Albertsons

Sherwin-Williams

Trader Joes

Circle K

RECENT BUSINESS DEVELOPMENT HEADLINES IN HESPERIA84 Lumber Returns to the Victor Valley with Hesperia SiteAnother prestigious name was added to the City's business directory with 84 Lumber breaking ground.

7/1/07 New Businesses Open All Over CityDevelopment on a variety of new commercial centers continues around the City. Residents can lookforward to a variety of new retail businesses and restaurants opening.

Home Depot and Wal-Mart Announce Plans for HesperiaBoth will anchor new center.

Gateway Center on TargetNew center to be anchored by Target.

Lennox Plaza, Coming SoonNew retail and business center.

Location

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SALES COMPARABLE

Sales Comparable – Recent Sales

Location

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Land Area AC

Price Per AC Land Property Address

PropertyCity Property Count y State

PropertyType Sale Date Sale Price

Sale Status

16.71 $348,292.28 Amargosa Rd Hesperia San Bernardino CA Land 8/17/07 $5,819,964 Sold14.17 $225,829.22 Mariposa Rd Hesperia San Bernardino CA Land 12/28/06 $3,200,000 Sold19.59 $153,139.36 Frontage Rd Hesperia San Bernardino CA Land 6/26/07 $3,000,000 Sold14.31 $196,019.99 Muscatel St Hesperia San Bernardino CA Land 11/27/06 $2,805,046 Sold

20 $110,000.00 Mariposa Rd @ Muscatel Hesperia San Bernardino CA Land 3/8/07 $2,200,000 Sold11.49 $152,306.35 Acacia Rd @ Cataba Rd Hesperia San Bernardino CA Land 2/20/07 $1,750,000 Sold6.12 $269,607.84 Mariposa Rd Hesperia San Bernardino CA Land 2/28/07 $1,650,000 Sold

14.99 $88,392.26 Hesperia Hesperia San Bernardino CA Land 1/4/07 $1,325,000 Sold11 $90,909.09 Lemon St @ G Avenue Hesperia San Bernardino CA Land 8/16/07 $1,000,000 Sold

5.26 $171,102.66 Willow St @ 3rd Ave Hesperia San Bernardino CA Land 5/14/07 $900,000 Sold5.22 $153,380.11 16646 Chestnut St Hesperia San Bernardino CA Land 5/2/07 $800,000 Sold

5 $125,000.00 SE Mesa St Hesperia San Bernardino CA Land 4/4/07 $625,000 Sold5 $110,000.00 Hwy 395 @ Pine Street Hesperia San Bernardino CA Land 6/11/07 $550,000 Sold

4.6 $84,782.61 Hesperia Hesperia San Bernardino CA Land 7/12/07 $390,000 Sold

Subject Property

Market Analysis

9



Sales Comparable – For SaleLand Area AC

Price Per AC Land Property Address

PropertyCity Property Count y State

PropertyType Zonin g

Sale Status

17.4 $28,678.16 5890 Arrow Hesperia San Bernardino CA Land RL-5 Active15.5 $419,354.84 13500 Main St Hesperia San Bernardino CA Land C-2 Active13.8 $65,217.39 Caliente @ I-15 & Oak Hill RHesperia San Bernardino CA Land Active

12.43 $348,480.13 Maple Ave Hesperia San Bernardino CA Land Industrial Active11.72 $247,440.27 Bear Valley Rd @ Mojave FHesperia San Bernardino CA Land Active

11 $636,363.64 E Ave @ Muscatel St Hesperia San Bernardino CA Land R3, Hesperia Active11 $9,972.73 Lemon St @ G Avenue Hesperia San Bernardino CA Land P-I, Public Institutional Active

10.87 $349,126.03 Mariposa Rd Hesperia San Bernardino CA Land Active10.87 $349,126.03 Mariposa Rd Hesperia San Bernardino CA Land Active10.19 $48,969.58 Portfolio with 2 properties Hesperia San Bernardino CA Land Active

10 $650,000.00 Fwy 15 & Main St Hesperia San Bernardino CA Land C-4/C-2 Active10 $650,000.00 Fwy 15 & Main St Hesperia San Bernardino CA Land C-4/C-2 Active10 $650,000.00 Fwy 15 & Main St Hesperia San Bernardino CA Land C-4/C-2 Active10 $425,000.00 Escondido Ave @ SEC of EHesperia San Bernardino CA Land Active10 $95,000.00 E Ave Hesperia San Bernardino CA Land M2 Active

9.63 $114,226.38 Live Oak St @ Pyrite Ave Hesperia San Bernardino CA Land Active9.3 $301,075.27 I Ave @ Hackberry Hesperia San Bernardino CA Land Light Industrial Active

9.06 $685,982.34 Poplar @ Lassen Rd. Hesperia San Bernardino CA Land C4 Active9 $696,666.67 Mesa Linda & Sultana St Hesperia San Bernardino CA Land Active

8.92 $151,345.29 Farmdale Ave Hesperia San Bernardino CA Land Single Family Residential Active8.81 $708,286.04 Mesa Linda & Poplar Hesperia San Bernardino CA Land C4 Active7.82 $287,723.79 G St @ Muscatel Hesperia San Bernardino CA Land R7, Hesperia Active7.35 $112,244.90 G Ave Hesperia San Bernardino CA Land Active7.22 $498,614.96 14236 Main St Hesperia San Bernardino CA Land Active

Subject Property

Market Analysis

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Vacancy Rates

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Demographics

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CITY OF HESPERIA

COMMUNITY PROFILE ECONOMIC DEVELOPMENT DEPARTMENT

APRIL 2007

Community Profile

April 2007

LOCATION Hesperia is conveniently located 35 miles north of San Bernardino, 90 miles northeast of Los Angeles and 195 miles south of Las Vegas, Nevada at the intersection of Highway 395 and Interstate 15. With an elevation of 3,250 feet, Hesperia’s incorporated area encompasses roughly 74.77 square miles. An adopted sphere of influence extends its geographic reach by 32 square miles.

ECONOMIC GROWTH AND TRENDS 1980 1990 2000 2007

Population in the County 919,700 1,418,380 1,709,434 2 2,031,990 3

Total Taxable Retail Sales, County1 (1st Quarter, 2006)

$4,124,903 $11,269,631 $18,885,438 $7,405,6093

Population in the City 13,540 50,418 62,582 2 91,627 4

Total Taxable Retail Sales, Hesperia1(1st,2006)

NA $257,288 344,077 $160,5923

Occupied Dwellings, Hesperia NA 11,239 19,966 2 28,5594

1 (in thousands), 2 Source: U.S. Census Bureau, Census 2000, 3 Source: California Department of Finance, 4 Source: Claritas Estimates 2007

TRANSPORTATION Highways: Hesperia is bisected by California State Highway 395 and Interstate 15. State Highways

14 and 138 complete Hesperia’s transportation grid. Truck: Over 30 intrastate and interstate carriers, including Roadway Express Inc., Yellow Freight,

and Double Eagle Transportation are available. United Parcel Service and Federal Express offer overnight delivery.

Rail: Burlington Northern Santa Fe main lines provide Hesperia’s rail freight service. Full intermodal services are provided a short 30 minutes away in our county seat of San Bernardino. Abbreviated passenger service by Amtrak is available in the neighboring city of Victorville.

Air: There are three local airports: Hesperia, Apple Valley and Adelanto. General aviation services are provided in Hesperia and Apple Valley, and only 15 minutes away at the Southern California Logistics Airport. Ontario International Airport is located 43 miles south of the City and provides passenger service and freight hubs for most major carriers.

Bus: Victor Valley Transit operates Monday-Friday beginning at 6:00 a.m. with its last full run at 9:00 p.m., and Saturday from 7am-8pm on a fixed route schedule in Hesperia, Victorville, Apple Valley, and Adelanto.

INDUSTRIAL SITES

Three expansive redevelopment project areas encompass over 26,000 acres within the city and include two primary industrial corridors. The Joshua/Main Street Industrial Area, bordered by Hwy 395 and I-15, consists of approximately 1,150 acres that is approximately 80% vacant and ready for immediate development. Water, sewer, telephone, electrical and natural gas services are available. A modern road system segments the area. Parcels range in size from .11 acres to 160 acres. Approximately 1,329 acres are incorporated in the “I” Avenue Industrial Area, located in the eastern core of the city. The majority of the 550 parcels in this industrial area are vacant and ready for development.

Community Profile

Some parcels are rail accessible. Water, sewer, telephone, electrical and natural gas services are available to most sites.

WATER SUPPLY Provided by Hesperia Public Works Department, the Hesperia Water District is an independent County Water District incorporated pursuant to California Water Code Sections. The water supply is obtained entirely from groundwater located in the Alto Sub-Basin of the Mojave River Watershed and groundwater aquifer. The District serves in excess of 84,000 persons, averaging 10M gallons per day. For more information contact Hesperia Public Works at (760) 947-1400.

SEWER SERVICE Sewer collection, which is discharged to a regional treatment facility, is serviced by Hesperia Public Works Department. Sewer is provided at a cost of $32.78 bi-monthly per Equivalent Dwelling Unit (EDU), which is equal to twenty Plumbing Fixture Units. For further assistance, contact the Engineering Department at (760) 947-1477.

STORM DRAINS AND FLOOD CONTROL Administered by Hesperia’s Public Works Department, there are nineteen separate regional drainage and flood control systems within the city.

STREET IMPROVEMENTS

Dedication and improvement requirements are overseen by Hesperia’s Engineering/Public Works Department. The 2006/07 Fiscal Budget dedicates an extra $2 million to the Pavement Rehabilitation Program, rehabilitating approximately an extra 24 miles of roadway. In the past five years, over 150 miles of roadway has been repaired and/or reconstructed throughout the city.

NATURAL GAS

Southwest Gas Corporation is located at 13471 Mariposa Road, Victorville. Southwest Gas has a special rate analysis service to help determine all rate options, giving each establishment its most beneficial rate. For rates applicable to the City of Hesperia contact the Southwest Gas office at (760) 241-9321.

ELECTRICAL POWER

Southern California Edison is located at 12353 Hesperia Road, Victorville. Economic Development rates are available to qualified industrial users. For rates applicable to the City of Hesperia contact the Southern California Edison office at (800) 655-4555.

TELEPHONE SERVICE

Verizon is located at 16071 Mojave Drive, Victorville. For rates applicable to the City of Hesperia, contact their business services office at (800) 483-5000. Some of the products that Verizon provides are Wireless Coverage, Internet Services, CentraNet, Frame Relay, ISDN BRI/PRI, Hi-Cap, voice messaging services, and Flexgrow trunks.

SANITATION

Advance Disposal’s office is located at 17105 Mesa Street, Hesperia. The Class C landfill is permitted for 600 tons per day. A Materials Recovery Facility (MRF) is available at Advance Disposal (760) 947-0285. Hazardous waste can be taken to the Hesperia Fire Station located at 17443 Lemon Avenue in Hesperia. Hours are: Tuesdays and Thursdays 9:00am to 1:00pm and Saturdays 9:00am to 3:00 p.m. For more information, contact the station directly at (760) 947-0285.

Community Profile

PUBLIC SAFETY

a. Police protection is provided by the San Bernardino County Sheriff’s Department, administered by a captain and staffed by a lieutenant, seven sergeants, five detectives, seven sheriff service specialists, one secretary, seven office specialists, one administrative aid, 20 patrol cars, eight unmarked vehicles, two patrol motorcycles, four off-highway motorcycles, two 4x4 sheriff service specialist units and 35 deputies.

b. Fire Protection for the City of Hesperia is provided by the San Bernardino County Fire Department through a contractual agreement. The County Fire Department is a full service department, providing to the community; fire suppression, fire prevention and planning, disaster preparedness, hazardous materials management and emergency medical services. The department is 55 members strong and includes 45 paid staff, four chief officers, one prevention officer, and five clerical staff. Equipment includes one 75’ paramedic aerial truck, five paramedic engines (two wild land), one water tender, and three paramedic ambulances operating from three stations of five personnel, and one unmanned (reserve) station that also serves as the Cities hazardous disposal facility. The fire department headquarters for the City of Hesperia is located at 17288 Olive Street.

LABOR AVAILABILITY- Unemployment 5.8%

Manufacturing Employment Name of Company Employees ProductsRobar Enterprises 288 Cement/Steel Daytec Center 90 Motorcycle frames Standard Abrasives 85 Abrasives Hesperia Truss 80 Roof Trusses Dial Precision 56 Turbo Charger Parts Mer-Mar 46 Circuit Boards Alltech Associates (Discovery Sciences) 25 Pharmaceutical C & M Woods 21 Wood Products

Non-Manufacturing Employment

Name of Company Employees Products/ServicesStater Bros. Markets 334 Grocery Arizona Pipeline Company 220 Pipe Fabricator Double Eagle Transportation 185 Transportation/Repairs In-N-Out 122 Fast Food K-Mart 115 General Merchandise Graco Children’s Products 101 Children’s Products Ram-Mar Painting Inc 90 Painting Pilot Travel Center 82 Truck Stop/Fueling station Little Sisters Truck Wash 77 Truck Wash

GOVERNMENTAL EMPLOYMENT

Government Employees Services Hesperia Unified School District 2,329 Education County of San Bernardino 356 Business and Social Services City of Hesperia 203 City Development

Community Profile

QUALITY OF LIFE Health: Hesperia has access to three medical centers with a total of 384 beds and 300 physicians in its surrounding areas. Both air and ground ambulance service is available twenty-four hours a day.

Education: The Hesperia Unified School District encompasses fourteen elementary schools, two sixth grade only schools, two middle schools, four high schools and one academy. California Baptist University, Chapman University (5 miles), Azusa Pacific University (5 miles), Victor Valley Community College (7 miles), University of La Verne (7 miles), Barstow Community College (30 miles), California State University San Bernardino (30 miles), University of Redlands (40 miles), University of Phoenix (40 miles), and Loma Linda University (40 miles). Most offer adult evening classes.

Recreation:

Hesperia has sixty-three churches, a library, two area newspapers, two area FM radio stations, community television channel, television cable network, and six parks. Some examples of recreational activities available include Hesperia Lake Park, Hesperia Golf & Country Club, Roller Hockey Rink, and Slot Car Racing. Surrounding facilities include Lake Silverwood, Lake Arrowhead, Val Shearer Arena for equestrians, Calico Ghost Town, and Wrightwood Mountain Resorts.

CLIMATE TEMPERATURE RAIN PERIOD MIN MEAN MAX INCHESJanuary 31° 45° 60° 1.11 April 42° 59° 75° .31 July 61 ° 80° 99° .16 October 45° 63° 81° .26

HOUSING Rentals for one and two bedroom apartments and duplexes range from $595 to $895 per month. Rentals for two and three bedroom homes range from $945 to $1,750 per month.

Sales prices for two to three bedroom existing homes range from $265,000 to $389,900.

Hesperia’s nine motels and hotels provide 532 rooms, with an additional 135 rooms at Courtyard by Marriott, due to open in December 2007.

SUMMARY

Adorned by the San Bernardino Mountain Range, Hesperia was named the “Star of the West” more than 100 years ago. Hesperia offers the best of Southern California lifestyle at a price that families can afford. Clean air, over 350 days of sunshine and deep blue skies entices businesses and residents to Hesperia. With its strategic location, Hesperia is posturing itself to be a major distribution and logistics hub in the Southern California Region. Hesperia…The City of Progress.

City of Hesperia Economic Development Department

Phone: (760) 947-1906 • Fax: (760) 947-1917 • Website: www.cityofhesperia.us

CITY OF HESPERIA

POP FACTS ECONOMIC DEVELOPMENT DEPARTMENT

APRIL 2007

POPFACTS2 Pop Facts

POPULATION

2012 Projection *107,399 2007 Estimate *91,627 2000 Census 68,423 1990 Census 54,370 Growth 2007 – 2012 17.21% Growth 2000 – 2007 33.91% Growth 1990 – 2000 25.85%

ESTIMATED NUMBER OF HOUSEHOLDS 2012 Projection 33,139 2007 Estimate 28,559 2000 Census 21,825 1990 Census 17,774 Growth 2007 – 2012 16.04% Growth 2000 – 2007 30.85% Growth 1990 – 2000 22.79%

2007 ESTIMATED POPULATION BY RACE 91,627 White 69.88% Black or African American Alone 4.56% American Indian & Alaskan Native 1.51% Asian 1.10% Native Hawaiian & Other Pacific Islander .23% Other Races (includes Hispanic/Latino) 22.72%

2007 ESTIMATED HOUSEHOLDS BY INCOME 28,559 $ 0-$24,999 22.41% $ 25,000 - $ 49-999 27.77% $ 50,000 - $ 99,999 36.69% $ 100,000 - $ 149,999 9.62% $150,000 – and over 3.53%

2007 ESTIMATED AVERAGE HH INCOME $60,124 2007 ESTIMATED MEDIAN HH INCOME $49,843 2007 ESTIMATED PER CAPITA INCOME $18,840 2007 ESTIMATED POPULATION BY SEX 91,627

Male 49.58% Female 50.42%

POPFACTS

2007 ESTIMATED POPULATION BY MARITAL STATUS 69,322

Male, Never Married 12.92% Female, Never Married 10.66% Married, Spouse Present 56.22% Married, Spouse Absent 4.10% Widowed 6.02% Divorced 10.08%

2007 ESTIMATED AVERAGE AGE 34.16 2007 ESTIMATED MEDIAN AGE 31.69

2007 ESTIMATED POPULATION BY AGE 91,627 Age 0 - 20 35.44% Age 21 - 34 18.95% Age 35 - 54 26.37% Age 55 - 64 9.11% Age 65 - 84 8.95% Age 85 and over 1.18% Total Population Age 65 and over 10.13%

2007 ESTIMATED TENURE OF OCCUPIED HOUSING UNITS 28,559

Owner Occupied 73.87% Renter Occupied 26.13%

City of Hesperia Economic Development Department Phone: (760) 947-1906 • Fax: (760) 947-1917 • Website: www.cityofhesperia.us

CITY OF HESPERIA POTENTIAL COLLEGE STUDENT POPULATION

ECONOMIC DEVELOPMENT DEPARTMENT August 2007

CITY OF HESPERIA

Population between the ages 15-44 1990 2000 2004 2007

Age Number % Number % Number % Number %15-24 6,556 13.00 9,319 14.9 10,282 18.04 15,387 33.59 25-34 8,475 16.8 7,280 11.6 8,397 12.5 12,144 26.51 35-44 7,437 14.75 9,837 15.7 10,357 12.96 11,697 25.53

TOWN OF APPLE VALLEY Population between the ages 15-44

1990 2000 2004 2007 Age Number % Number % Number % Number %

15-24 6,077 13.46 7,236 13.4 8,548 14.6 11,089 16.08 25-34 7.819 16.97 5,451 10 7,280 12.43 8,290 12.02 35-44 6,962 15.11 8,196 15.1 7,948 13.57 8,013 11.62

BARSTOW (15-MILE RADIUS) Population between the ages 15-44


15-24 5,546 14.98 3,230 15.3 5,232 14.06 3,434 15.26 25-34 6,780 18.31 2,640 12.5 4,878 13.11 3,449 15.33 35-44 5,040 13.62 3,149 14.9 5,603 15.06 2,983 13.06

CITY OF VICTORVILLE Population between the ages 15-44


15-24 5,520 13.57 8.782 13.7 9.051 13.98 15,669 15.65 25-34 7,985 19.63 8,427 13.2 7,801 5.17 13,498 13.49 35-44 5.377 13.22 9,902 15.5 9.504 14.68 13.862 13.85

CITY OF ADELANTO Population between the ages 15-44


15-24 1,387 16.3 2,560 14.2 3,732 14.21 4,126 15.48 25-34 1,983 13.28 3,258 18 3,310 12.6 4,227 15.86 35-44 990 11.64 3,115 17.2 4,484 1707 4,600 17.26

Sources: Division of Claritas (2007), U.S. Census Bureau (Census 2000)

City of Hesperia Economic Development Department Phone: (760) 947-1900 • Fax: (760) 947-1917 • Website: www.cityofhesperia.us

CITY OF HESPERIA

SHORT LIST DATA ECONOMIC DEVELOPMENT DEPARTMENT

APRIL 2007 COMMUNITY OVERVIEW

POPULATION TRENDS Location 1980 1990 2000 2007 Hesperia 13,540 54,388 68,442 91,627 Adelanto 2,160 8,517 18,130 26,650 Apple Valley 19,291 46,079 54,239 68,940 Victorville 14,270 40,674 64,029 100,093 San Bernardino County 919,700 1,418,380 1,709,434 2,031,990

Hesperia Annual Growth Rate: 3.5% *Source: Claritas, Inc. 2007

EDUCATIONAL ATTAINMENT

Among Population Over Age 25 Number Percent of Total Less than 9th Grade 4,496 8.34% Some High School, No Diploma 9,718 18.02% High School Graduate (or GED) 16,588 30.76% Some College, No Degree 14,909 27.64% Associate Degree 3,695 6.85% Bachelor’s Degree 3,135 5.81% Graduate or Professional Degree 1,394 2.59%

*Source: Claritas, Inc. 2007 INCOME

Income 1990 2000 2007 2010 Average Household Income $34,946 $49,760 $60,124 $66,471 Median Household Income $34,498 $41,825 $49,843 $54,957 Per Capita $11,472 $16,072 $18,840 $20,848

BUYING POWER

Household Income 2000 2007 2010 Census Estimate Projected Income less than $15,000 14.80% 11.4% 10.09% $15,000 to $24,999 14.11% 10.94% 9.78% $25,000 to $34,999 12.94% 11.75% 11.03% $35,000 to49,999 17.90% 16.02% 14.72% $50,000 to 74,999 23.96% 22.87% 22.10% $75,000 to 99,999 8.85% 13.82% 14.36% $100,000 to 249,999 7.93% 12.1% 16.68% $250,000 and over .49% 1.05% 1.25%

*Source: Claritas, Inc. 2007

MARKET ACCESS

DISTANCE TO MAJOR MARKETS CITY MILEAGE DRIVE TIME Los Angeles Basin (Ontario) 40 0.8 hours Long Beach 97 1.94 hours San Diego 150 3 hours San Francisco 425 8.5 hours Las Vegas 185 3.7 Hours Phoenix 300 6 hours Salt Lake City 520 10.4 hours

*All drive times are based on 50 mph MAJOR NEARBY HIGHWAYS DESIGNATION DESTINATIONS Interstate 15 Las Vegas, Los Angeles, Salt Lake City, Colorado Highway 395 Reno, Nevada State Route 138 Palmdale, Lancaster Interstate 40 Los Angeles, Arizona, New Mexico, Texas Highway 58 Bakersfield, Central California I-15 PROJECT This $9.5M project, completed in early 2006, replaced a two-lane over crossing with a new, wider structure accommodating six traffic lanes for west and eastbound Main Street. The northbound and southbound ramps were modified. Traffic signals installed and the interchange was reconfigured. Mariposa Street, fronting I-15, was realigned. Annual Average Daily Traffic Counts on I-15 at Main Street is 212,000.

SHORT LIST DATA

NEAREST INTERNATIONAL, COMMERCIAL, COMMUTER AIRPORTS Southern California Logistics Airport – Victorville (15 minutes) General, Military and Commercial uses to serve any aircraft type. Non-stop instrument runway 15,850 feet in length, with a crosswind runway 10,000 feet in length. Ontario International Airport – Ontario (50 minutes) ONT is a medium-hub, full service airport with commercial jet service to major U.S. cities and through service to many international destinations. Served by 12 airlines, Southwest, United/Ted, United Express, Delta, Alaska, America West, American, Northwest, Continental, AeroMexico, Lineas Aereas Azteca, and Jet Blue. ONT has about 265 daily flights.

SHORT LIST DATA

Two terminals at 265,000 square feet each for a total of 530,000 square feet. With two runways, a 12,200 foot and 10,200 foot, ONT can accommodate up to 10 million passengers a year. Currently it serves 6.9 million annual passengers. ONT also offers a freight service with eleven major U.S. airfreight carriers including United Parcel Service, Federal Express, Pacific Valley Air Freight, Airborne Express/DHL, Empire Airways, Ameriflight, Evergreen, Kalitta Air, Express Net, West Air, and Union Flights. For more information on Ontario International Airport, call Public Affairs at (909) 975-5360. GENERAL AVIATION Hesperia Airport – Hesperia Apple Valley – Apple Valley (15 minutes) Runway Length-3,960 feet Primary Runway Length-6,500 feet

Cross Runway Length-4,100 fee RAIL SERVICES

Name Main or Branch

Switching Frequency

Intermodal Location

Union Pacific Yermo reciprocal Victorville Burlington Northern Santa Fe Barstow reciprocal Victorville

NEAREST DEEPWATER PORTS

Port Distance Annual Tonnage Services Los Angeles 90 mi 82.1 million 29 Facilities for all types of cargo Long Beach 97 mi 64.5 million Dockside rail facilities, Union Pacific/BNSF San Diego 150 mi 1.8 million Dockside rail facilities San Francisco 425 mi 1.0 million Handles all types of cargo efficiently

PUBLIC TRANSPORTATION Type Name Service Area Telephone Number Bus Victor Valley Transit Victor Valley (760) 948-3990 Shuttle/Taxi Red Hawk Taxi & Shuttle Victor Valley (760) 949-9554 Shuttle Superior Shuttle Co. Victor Valley (760) 244-1510

SEVEN LARGEST MOTOR FREIGHT AND CONTRACT CARRIERS Company Telephone Number PARCEL CARRIERS Yellow Freight (909) 891-1700 Airborne Express/DHL (800) 225-5345 Viking Freight (800) 627-5517 United Parcel Service (800) 782-7892 Roadway Express (760) 246-0031 Federal Express (800) 463-3339 Ryder/PIE (800) 297-9337 U.S. Mail (800) 275-8777 Roadway (800) 345-3520 GSO Xpress Global (336) 931-5050 Eagle F.B. (888) 640-9925 Systems International Transport (909) 356-9992

UTILITIES

ELECTRIC POWER Southern California Edison – (800) 655-4555

Average Cost ($ per kWh)

Large Commercial/Industrial (GS-2): $0.12 Small Commercial/Industrial (GS-1): Winter: $0.15 Summer: $0.13

SHORT LIST DATA

Assumptions Used in Estimating Costs: If a company uses over 2,000 kWh per month, they are considered to be in the GS-2 Program. Once a company is considered a large commercial/industrial they must also add in the Demand Price, which varies depending on amount of electricity utilized.

Discounts and Incentive Rates Special Rates for Larger Companies Yes (Entry threshold = 2,000 kWh/month) Real-time Pricing Available No Primary Metering Discounts No Incentive Rates or Negotiating Ranges Yes For companies open 24-hours a day, SCE offers a Time of Use (TOU) rate, that gives lower rates at night. NATURAL GAS Southwest Gas Corporation – (760) 241-9321 Estimated Annual Cost Per Therm

Commercial Facility – Winter: $0.87 Summer: $0.85 Medium Industrial Facility – Winter: $0.55 Summer: $0.52 Large Industrial Facility – Normally transport gas. Assumptions: Published rates available upon request. Discounts and Incentive Rates: Special Rates for Gas Transporting Companies threshold is currently 250,000 therms, annually.

WATER Name: Hesperia Water District Source of Supply: Groundwater, 14 wells

Storage: 60 million gallons of above ground storage. Alto Sub-Basin of the Mojave River Watershed and groundwater aquifer.

Capacity: 63 million gallons of water Peak Demand: 26.2 million gallons Average: 12.7 million gallons per day

WASTEWATER SYSTEM Name: Hesperia Public Works Capacity: 14.7 mgd Peak Demand: 12.2 mgd Available Capacity: 2.3 mgd Cost: $7.93 per Equivalent Dwelling Unit (EDU), equal to 20 Plumbing Fixture Units

WASTE DISPOSAL

Name: Advance Disposal Capacity: Permitted for 600 tons per day. Class: “C” Hazardous Waste Disposal

Provider: Hesperia Fire Station located at 17443 Lemon Street. Approved local hauler available to transport hazardous waste

RECYCLING & RECOVERY PROGRAMS Provider: Advance Disposal

Material Recovery Facility (MRF): Advance Disposal Recycling Incentive Program: Provides free bin and free pick-up Pick-up Services: Once a week

SHORT LIST DATA

TELECOMMUNICATIONS Verizon Verizon’s portfolio of networking technology encompasses state-of-the-art products such

as Nortel, Adtran, Kentrox, INTEL, Newbridge, and CISCO, to mention a few. Verizon also offers competitively priced Internet access and long distance service.

Available Services Digital Central Office: Digital Switching PRI/ISDN ATM Fiber Central Office: Fiber Ring Dual Feed Other Services: TI Connection & Fiber (in office only)

Interexchange Carriers (IXC’s): Verizon Wireless Providers (Voice & Data) AT&T Wireless Airtouch Cellular Cell Com Cingular Wireless Desert Cellular & Paging Hi-Desert Communications LA Cellular Superstore Mobile Leader Communications Mobile Telesys, Inc.

Montana Communications Nextel Communications Pacific Bell Wireless Pagerworks RECOMM Sprint PCS Superior Satellite Systems & Paging Service Verizon Wireless

Internet Service Providers (ISP’s)

Accex Net Broadwing Communications Charter Communications Coastal Web Online Community Information Services Online CompuAd Information Network CompuNet Solutions Earthlink Inland Internet

In-reach Internet Integrity On Line International Access Oak Tree Systems Sunrise Internet Services Swift Com., Inc. Ultimate Internet Access Inc. Verizon Wrightwood Wireless Web

INCENTIVES

FEDERAL INCENTIVES Section 108 Loans EDA Grant STATE TAX CREDITS Machinery/Equipment: Manufacturer’s Investment Credit

STATE/FEDERAL FINANCING PROGRAMS Bonds – Tax Exempt Industrial Development Bond Financing (County) Bonds – Tax Development Bond Program (County) Community Development Block Grant Construction/Expansion/Machinery/Equipment: Equipment only purchase program (County) EDA Infrastructure SSED Revolving Loan Funds SBA: 504 Loan Program (County)/& A Loans Grow America Funds (County) Tax Increment Financing: Redevelopment Programs

SHORT LIST DATA

LOCAL FINANCING PROGRAMS Local Revolving Loan Funds: Section 108 LOCAL REAL ESTATE INCENTIVES Land Write-Down: Redevelopment Programs Acquisition: Redevelopment Programs T.I. Improvements: Redevelopment Programs Off-Site Improvements: Redevelopment Tax Increment Other Real Estate: Business Expansion Program/Commercial Attraction Program/Façade Improvement EMPLOYMENT AND TRAINING – LOCAL AND STATE Pre-Screening: Job Training & Employment Recruitment Assessment: Job Training & Employment Recruitment Customized Training: Job Training & Employment Recruitment On-the-job Training: Job Training & Employment Recruitment REAL ESTATE INCENTIVES Infrastructure Improvement Assistance Redevelopment Agency (Eminent Domain Authority) FINANCING INCENTIVES Job Creation Bonuses Investment Tax Credits Manufacturing Property Tax Credit Business License/Permit Fee Waivers Industrial Development Bond Financing Local Business Lending Programs

REGULATORY PROCESS PERMITS AND FEES OVERVIEW Business License: $83.00 Annual Operating Permit: Varies Transient Occupancy Tax (TOT): 10% Sales Tax (Local Rate): 7.75% Development Impact Fee: $10,220.00 (Effective July 1, 2007 Fee Increases to $13,198.00) (Residential) (Commercial development will also be increasing)

School Fees: $5.03/sqft Parks/Recreation Fee: $5,486.50 (Effective July 1, 2005 Fee Increases to $3,300.00)

No Waivers, Reductions, or Rebates/Credits are available. Development Impact Fee, however, can be deferred.

AIR QUALITY REGULATIONS Regional Classification for Non-Attainment Areas: Moderate-State PM10/Federal PM10 Severe-State & Federal Ozone

Emissions Limits: Particulate Matter (PM) Oxides of Nitrogen (NOx) Toxic & Hazardous Air Pollutants

Oxides of Sulfur (SOx) Volatile Organic Compounds Carbon Monoxide Average Permitting Time

SHORT LIST DATA

Facility Sources Emitting < 25 tons per year Facility Sources Emitting > 25 tons per year < One Month About Three Months

PERMITS REQUIRED

Most stationary equipment, such as but not limited to boilers, I C engines, spray booths, gas stations, screens, crushers, etc.

Authority to Construct

Filing Fee: $212.00 Application Process: Signed Original Application Evaluation Process: Series of Internal Reviews Evaluation Fee: NA (25 ton sources have additional fees) Evaluation Time: Variable Permit to Operate Annual Permit to Operate Fee: Variable NO SEPARATE PROCESS FOR PTO (ATC is temporary PTO) *Source: MDAQMD (4/09/07) WATER QUALITY REGULATIONS

Both Primary and Secondary standards once again met or exceeded the states requirements. A copy of Hesperia’s Annual Water Quality Report is available for further information.

ZONING

R-1 – Single Family Residence District

Permitted uses include one single family dwelling unit per lot, two dogs and two cats, and small livestock on one acre or more. Horses on lots over 20,000 square feet in area. Special uses include various public or institutional uses such as churches, schools, fire stations, etc.

R-3 – Multiple Family Residence District Permitted uses include multiple family dwellings, boarding and lodging houses. Special uses include mobile home parks, motels, hotels and recreational vehicle parks.

RR – Rural Residential District Permitted uses include one single family dwelling unit per lot, four dogs and four cats, and some livestock on lots over 10,000 square feet in area. Special uses include various public or institutional uses such as churches, schools, fire stations, etc.

A-1 – Limited Agriculture District Minimum parcel size one acre. Permitted uses include one single family dwelling unit per lot, six dogs and six cats, livestock, orchards, nurseries, and other agricultural uses. Second dwelling unit subject to approval of special use permit. Special uses include dog kennels, animal hospital with outside runs, and commercial riding stables (minimum 5 acres).

A-2 – General Agriculture District Minimum parcel size five acres. Permitted uses include those listed in A-1. Special uses include dairies, hay yards, and dude or guest ranches.

AP – Administrative and Professional Office District Permitted uses include administrative and professional offices, such as medical, dental, accountants, insurance agents, banks and other similar offices uses where no retail trade occurs and no inventory of goods is maintained for sale.

C-1 – Neighborhood Commercial District

SHORT LIST DATA

Permitted uses include those listed in AP. Other permitted uses include retail uses such as bakeries, book or stationery stores, florists or gift shops, jewelry stores, barber shops or beauty parlors, laundry and dry cleaning establishments and shoe stores. All uses must be conducted within an enclosed building.

C-2 – General Commercial District Permitted uses include those listed in the AP and C-1 districts. Other permitted uses include amusement enterprises, pet shops, commercial nurseries, automobile sales, veterinary clinic for small animals, and automobile repair shops. All uses must be conducted within an enclosed building. Special uses include swap meets, motor vehicle impound yards and recreational vehicle storage.

C-3 – Service Commercial District Uses in this zone are intended to be primarily supportive to the commercially oriented consumer, businesses to business retail and wholesale sales and services, and to provide convenient services for those people employed in the immediate area. Permitted uses include some wholesale and retail trade uses, business services, professional services, and mini-storage. Special uses include vocational and trade schools, correspondence schools and business associations.

C-4 – Regional Commercial Uses in this zone are intended for regional commercial activities and services of a more intensive nature, to take advantage of locations along major transportation routes such as Interstate-15 and State Highway 395. Permitted uses include, but are not limited to a regional retail mall and supportive businesses and services, regional distribution facilities, corporate offices, and entertainment facilities.

I-1 and M-1 – Limited Manufacturing Districts Permitted uses include manufacturing of various meat and dairy products, bottling, bakery products, various textiles such as yarn and broad woven fabrics, apparel, lumber and wood products, furniture, leather and leather products, machine shops, and fabricated plastic products. Special uses include wholesale business; motion picture studios; truck terminals; contractor’s equipment storage yards; hay, grain, wood and fuel oil storage and sales yards; auctions and construction equipment sale lots.

I-2 and M-2 – General Manufacturing Districts Permitted uses include retail and wholesale sales of products manufactured on site. Manufacturing uses include textile mill products; food and kindred products; lumber and wood products; products of petroleum and coal; leather and leather products; stone, clay and glass products; machinery and electrical machinery; transportation equipment and rubber products. Special uses include meat packing; sea food canning and curing; fireworks and pyrotechnics; motor vehicle dismantling and junk and salvage facilities; blast furnace or coke ovens; livestock feed and sales yards; sandblasting plants; tank farms for petroleum products; iron, steel, brass or copper foundry, rolling mill and boiler works and railroad yards.

MR – Restricted Manufacturing District Permitted uses include van and storage businesses, rug cleaning and repair plants, and manufacturing uses listed in the M-1 district. Special uses include motor vehicle impound and storage yards and boat and recreational vehicle storage facilities.

GOVERNMENTAL SERVICES AND TAXES

LOCAL GOVERNMENT Name: San Bernardino County Form of Government: County Charter Year Incorporated: 1854 Type of Management: Board of Supervisors Meeting Frequency: Weekly CITY GOVERNMENT

SHORT LIST DATA

Name: City of Hesperia Form of Government: Municipal Corporation Year Incorporated: 1988 Type of Management: General Law/Mayor, City Council Meeting Frequency: Bi-Monthly

PROTECTIVE SERVICES – POLICE AND FIRE

Police Protection Provider: San Bernardino County Sheriff’s Department

Contact: Hesperia Police Department - (760) 947-1500 Number Officers/1000 population: Administered by a captain and staffed by a lieutenant, seven sergeants, five detectives, seven sheriff service specialists,, thirty five deputies one secretary, seven office specialists and one administrative aide. Number of Vehicles: 20 patrol units/ 8 unmarked vehicles/ 4 citizen patrol, 24-Hour Patrol, 2 patrol motorcycles,4 off-highway motorcycles, 2 4x4 sheriff specialists units

Fire Protection

Provider: San Bernardino County Fire Department Firefighters: 55 Firefighters/paramedics and full-time personnel, 8 part-time personnel, 4 Reserve firefighters, and 3 Fire prevention/inspectors.

Contact: Fire District Headquarters, 17288 Olive Street, Hesperia, CA 92345 - (760) 947-8023 Number of Stations: 4

Number of Vehicles: I 75’ paramedic aerial truck, five paramedic engines (two wild land), one water tender, and three paramedic ambulances.

STATE TAXES

Type Base/Measure Rate Administering Agency Corporate Income Tax Net income apportioned to CA 8.84%-10.84% Franchise Tax Board

Personal Income Tax Taxable personal income 1%-9.3% Franchise Tax Board Sales & Use Tax Receipt from sales or lease of

taxable items 7.25-8.25%

Board of Equalization

Unemployment 1st $7,000 of wages per employee 1% EDD Insurance Tax per year 6.2% Disability Insurance 1st $79,418 of wages 1.08% EDD

Workers’ Comp. Insurance

Payroll & Occupation Variable Dept. of Ind. Relation

Real Property Tax General Tax Levy 1-1.25% Franchise Tax Board Personal Property Tax General Tax Levy 1-1.25% Franchise Tax Board

City of Hesperia Economic Development Department

Phone: (760) 947-1906 • Fax: (760) 947-1917 • Website: www.cityofhesperia.us

COMMUNITY PROFILE April 2007

CITY OF HESPERIA Leading Employers

G EMPLOYMENT

ny

MANUFACTURIN Name of Compa Employees ProductsRobar Enterprises 2

frames ves

ion Parts

88 Cement/Steel Daytec Center 90 MotorcycleStandard Abrasi 85 Abrasives Hesperia Truss 80 Roof Trusses Dial Precis 56 Turbo ChargerMer-Mar 46 Circuit Board Alltech Associates (Discovery Sciences) 25 Pharmaceutical

C & M Woods 21 Wood Products

URING EMPLOYy

NON-MANUFACT MENT Name of Compan Employees Products/ServicesStater Bros. Markets 334 Grocery Arizona Pipeline Company 220 Pipe Fabricator Double Eagle Transportation tion/Repairs

t 185 Transporta

In-N-Ou 122 Fast Food K-Mart 115 General Merchandise

ts Products

Graco Children’s Produc 101 Children’sRam-Mar Painting Inc. 90 Painting Pilot Travel Center/Wendy’s 82

Truck Stop/Fuel/Fast Food

ittle Sisters Truck Wash

77L

Truck Wash

NTAL EMPLOYMENT GOVERNME

Government Employees Services Hesperia Unified School District 2,329 Education County of San Bernardino 356 Business and Social Services

City of Hesperia 203 City Development

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