HomeMy WebLinkAbout1999-11-23 - AGENDA REPORTS - CFD99-1 SC BUSINESS PARK TAX (2)AGENDA REPORT
City Manager Approva
Item to be presented b . Steve Stark
UNFINISHED BUSINESS
DATE: November 23, 1999
SUBJECT: ADOPT ORDINANCE, AUTHORIZING A LEVY OF A
SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT
99-1 (SANTA CLARITA BUSINESS PARK)
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt Ordinance, authorizing a levy of a special tax for Community
Facilities District 99-1 (Santa Clarita Business Park).
BACKGROUND
On November 9, 1999, the City Council conducted a public hearing and held an
election to form Community Facilities District 99-1 (Santa Clarita Business Park).
As part of the proceedings, the Council introduced for first reading and passed to
second reading an Ordinance authorizing the levy of a special tax. In order to
finalize the process, the Council should now adopt the Ordinance. In December,
staff will bring a request to Council to approve the first issue in a series of bond
sales.
In terms of background, in 1998, the City entered into a Development Agreement
with Spirit Properties Ltd. ("Spirit") to develop a 200 -acre business park. On
August 4, 1999, the City entered into a Funding, Construction, and Acquisition
Agreement (the "Funding Agreement") with Spirit, which provided that the City
may construct Phase I of the Golden Valley Road extension (in conjunction with the
Hart School District and the Santa Clarks. Valley Facilities Foundation) and that
Spirit and PacTen Partners (its proposed buyers) will construct Phases II and III of
the Golden Valley Road extension.
The Funding Agreement provided that the City would use its best efforts to form a
Mello -Roos Community Facilities District for the purpose of funding Phases II and
III of the Golden Valley Road extension (up to its B&T obligation) and certain
in -tract improvements. Since then, Spirit, as landowner, submitted a petition
requesting the City to commence the proceedings to form a Community Facilities
District.
COMMUNITY FACILITIES DISTRICT 99-1
November 23, 1999 — Page 2
Tonight's item is to finalize the forming of the Community Facilities District and
authorize a special tax on the property. The City Council will have another
opportunity to take action on this item in a future Council meeting. Future series of
bonds may be sold when the project has attained sufficient value to meet a 3:1
value -to -lien ratio in order to market and sell the bonds.
ALTERNATIVE ACTION
The Council may choose not to approve the Ordinance.
Other action as determined by Council.
FISCAL IMPACT
Spirit and the City shall each be responsible for half the cost associated with
forming the Community Facilities District, estimated to be $90,000.
ATTACHMENT
Ordinance
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