5. Selection of Lessee

SCE states that Montalvo was awarded an option to lease the site because of the proposed site use and the strong background of the company's managing partner, KMI Real Estate Groups, Inc. (KMI). Since its formation in 1991, KMI has developed, redeveloped or managed a portfolio of retail properties approaching two million square feet. The site here would be a small part of KMI's proposed 32-acre Montalvo Hill Village project. When completed, the Montalvo Hill Village project would be a community and neighborhood shopping center anchored by tenants such as Ralph's Market, Long's Drugs, and L.A. Fitness Center.

SCE states that KMI employs a broad range of real estate professionals with experience in leasing, design, government relations, architect/engineer coordination and construction management. In addition to maintaining its own real estate portfolio, KMI serves a wide range of institutional clients, such as Chase Manhattan Bank, Long Beach Bank, Sun America Insurance and Provident Savings Bank. The KMI principals are Jay Kerner, president, and Scott Yorkison, vice president.

Kerner has 12 years of experience in the development and management of commercial and multi-family properties. He oversees KMI's large commercial property portfolio and its six multi-family properties, and he runs KMI's offices in Los Angeles and Ventura counties. Yorkison oversees KMI's current 300,000-square-foot leasing portfolio and has an additional 500,000 square feet in immediate development. His responsibilities also include property acquisition, project planning and management and construction management.