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out the mathematics of that. If you multiply 5,000 sq. ft. by $1.35 it does not add up to that figure. He asked how the assessment payment will be made. He commented there was an agreement signed by the properties in this district prior to his purchasing this property and he is feels at this point that he should have been made aware of that; and he would like to know when that was signed and where that document is and how he can get ahold of it. Mayor Mercer asked what is the responsibility of the person he brought the proerty from to tell him everything that had occurred. Mr. Zullo stated that piece of property is industrial condo parcel and there is a certain portion of the site that is occupied by buildings and then there is a total acreage of the parcel; he took the total acreage of the par- cel and allocated to the different condo units. Rule No. 8 in the Engineer's Report covers that. With regard to the improvements Mr. McDonald mentioned, when the City did the Fire Improvement District there were certain items of work that had been completed that were required, and certain items of work yet to be completed and were being let out for construction, and then there were some items like Stoneridge Drive Extension which were being funded and as soon as the design was completed they would be going out to bid and the property owners assessed for that work. That is the situation on Stoneridge Drive ex- tension; it was included in a prior assessment district. With regard to how the assessments will be paid, the mathematics that Mr. McDonald was reading from were assessments that had already been levied against the property. The prior district, if that came to $1.35, it was just coincidence that it was the same mathematics. There is no connection between the roadway and the freeway districts. The freeway district assessment that has been noticed on the prop- erty, as the initial bonds are sold, which will be about a third of the total amount that the property has been noticed, those bonds will be sold and amori- tized over a period of approximately 20 years, depending on the market trade. Approximately a third of the amount of money will be funded and those assess- ments then will be coming due with the tax bills in December and April each fiscal year. As the City proceeds with the balance of the freeway work and sell additional bonds, then there will be another layering of costs that will go on the property and will be added to the tax bill. When the last bond is sold the maximum lien hopefully will be something less than a $1.35; all that the City can assure Mr. McDonald of today is that it will not exceed $1.35. Mayor Mercer asked if there would be a possibility later of refinancing, thus lowering the assessment district cost. Mr. Brunsell stated that is a possibility although he did not think anyone today is holding their breath about seeing interest rates falling far enough in the near future to refinance these bonds. Actually they will probably be spread over more like a twenty-five year basis or more because he is going to sell these bonds in stages. It is hard to predict how the burden will fall but obviously he will sell the bonds at the lowest interest rate available in the current market whenever those bonds go up for bid. Mayor Mercer asked an answer to Mr. McDonalds question as to the respon- sibility of the property owner who sold him the property to advise him of any assessment districts. Mr. Brunsell stated that in general terms it depends on the agreement of sale. Ordinarily title reports will disclose the existence of assessment liens. Title companies are not required to disclose the exis- tence of a possible future assessment lien; this assessment lien has not been - 11 4-21-87