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STT FLT 515 S. Figueroa Street, 18 "' Floor, Los Angeles, CA 90071 November 14, 2014 . Michael Busch, Chief Executive Officer Urban Futures Inc. 3111 N. Tustin, Suite 230 Orange, CA 92865 Re: Request for Proposal – City of Santa Ana Series 2014 Tax Allocation Refunding Bonds Dear Mike, On behalf of Stifel, Nicotaus & Company, Inc,, thank you for the opportunity to present our credentials to serve the Successor Agency to the City of Santa Ana Community Development Agency as underwriter for the proposed refunding of the 2003 Series A &B Tax Allocation Bonds. Although not a household name, Stifel is the leader in California municipal finance, drawing on the legacies of two well - established predecessor firms —Stone & Youngberg, acquired in 2011, and De La Rosa & Co., acquired earlier this year. With regards to the Agency's financing program, Stifel's position in the California market is distinctive for a number of reasons: We I{now the Credit Story. Through our earlier work on the Community Development Agency's 2011 Bonds, we are familiar with the Merged Project Area. We toured through the entire Project Area as part of our due diligence process, reviewed the interrelationship between the Component Project Areas and examined much of the underlying documentation and agreements involving the Agency. Like many redevelopment credits, Santa Ana's Merged Project is not a cookie- cutter credit. We understand the nuance of the story and can explain it to credit analysts and 'investors. We Also Know Santa Ana Community and the Area. Stifel has a strong presence in California and experience in selling bonds for issuers with the "Santa Ana" name. In addition to the Community Development Agency's 2011 Bonds and this summer's Water Revenue Bonds, we have underwritten bonds for the Santa Ana Unified School District, Our lead banker believes in the strength of the community and owns SAUSD bonds, being precluded from buying the City's issues. Further, we are active in marketing bonds for neighboring issuers throughout Orange County. With a Los Angeles based underwriting desk, we understand the contours of the local economy and the City's leading role in Orange County and the entire region. We helped craft the City's story last summer as a part of the Water Bands financing and are well positioned to expand on that story with this financing. Stifel is the Dominant California Local Public Firm. In combining two of the most active municipal underwriting fimns in California, Stifel brings together bankers, salespeople and underwriters with more collective experience underwriting California issues than any other firm. According to the Securities Data Corporation, Stifel and its predecessor components rank as the top underwriter of California municipal bonds by number of issues over the past five years, having sole or lead managed over 1,232 financings totaling nearly $37 billion. We know the market for California bonds. Top Underwriter of Post - Dissolution Tax Allocation Bonds Both Stone & Youngberg and De La Rosa & Co. were long- standing stalwarts in the redevelopment sector prior to dissolution. Post dissolution, we have structured, priced, and sold 52 California Tax Allocation Bonds ( "TABs ") financings totaling over $L6 billion in par, including 47 senior or sole- managed issues totaling over $l.5 billion. By virtue of this track record, Stifel has cultivated an expansive network of institutional investors, asset managers and individual retail investors who understand redevelopment credits and participate actively in this sector. The tatter two investor categories should be of particular interest to the Agency, as both will be critical for your proposed Financing. 3 -135