Perris Community Economic Development Corporation

“The corporation submitted its application to the internal revenue service (the "irs") in recognizing the corporation as a not-for-profit corporation as described in 501(c)(3) of the internal revenue code ("irc") and received the exempt status from the irs on december 7, 2015; effective april 29, 2014. The corporation is exempt from federal and state income taxes on related income pursuant to 501(a) and 170 (b)(1)(a)(i) of the irc and california revenue taxation code 23701d as a public charity. The corporation utilizes a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. The corporation has determined that its major tax jurisdictions are federal and california. At june 30, 2022, management believed that there were no uncertain tax positions.”

“Veterans memorial contribution”

“VETERANS MEMORIAL”

“On march 27, 2018, the corporation entered into a master lease agreement with the city where the city will build the perris downtown skills training and job placement center and lease the building to the corporation upon the building becoming available for occupancy. The term of the lease is for 55 years at $1.00 per annum, upon completion of the construction, the date barriers to entitlement are overcome. The free use of facilities upon completion of the construction is considered a multiyear conditional promise to give in the amount of $16,196,491, net of estimated effective interest at rate of 5% annum. The corporation will sublease the building to subtenants for commercial and education uses related to skill training and job placement at market rate. As part of the lease agreement, the corporation is obligated to pay the real property taxes allocated to the leased space.”