HomeMy WebLinkAbout1999-08-04 - AGENDA REPORTS - GV RD ACQUISITION AGMT (2)CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval
Item to be presented by: Steve Stark
NEW BUSINESS
DATE: August 4, 1999
SUBJECT: GOLDEN VALLEY ROAD FUNDING, CONSTRUCTION, AND
ACQUISITION AGREEMENT (PHASES II AND III)
RESOLUTION NO. 99-82
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt Resolution No. 99-82, approving the Funding, Construction, and
Acquisition Agreement in connection with a proposed Community Facilities District for
Golden Valley Road (Phases II and III), subject to City Attorney approval.
BACKGROUND
In 1998, the City entered into a Development Agreement with Spirit Properties Ltd.
("Spirit") to develop a 200 -acre business park at Golden Valley Road and Golden Triangle
Road. As described in the agreement, the developer may request that the City consider
alternative funding mechanisms. In May 1999, Spirit, PacTen (future developers of the
site), and Santa Clarita Business Park tentatively agreed to a draft Funding, Construction
and Acquisition Agreement that included the construction of an extension of Golden Valley
Road ("Golden Valley Extension") from Soledad Canyon Road south to Station 122+50.
This location represents a point north of the future intersection of Golden Valley Road and
Via Princessa as shown on the street plans. This section of the roadway has been
designated Phases II and III to distinguish it from the section immediately to the south
(Station 122+50 to Sierra Highway) being constructed as a joint effort between the Hart
School District, the Santa Clarita Valley Facilities Foundation, and the City of Santa
Clarita. Phase I, as this project has been designated, is expected to be bid by the City
within the next two to three months.
The agreement provided for construction of the facilities by the developer is in exchange for
B&T fee credits in the range of $4.3 million to $5 million, depending on actual costs. It is
expected that the actual costs to construct Phases II and III will exceed the B&T fees
associated with the project by approximately $1.6 million. This amount will be reimbursed
to SCBP (PacTen) from future B&T fees collected within the district. The agreement
provides that the City will be reimbursed first for any loans, etc., required for Phase I
work. After City repayment, 70 percent of the B&T fees then collected from the Eastside
District will be paid to the developer, and the remaining 30 percent will be available for
other district expenses.
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RESOLUTION NO. 99-82
August 4, 1999 — Page 2
In addition to B&T fee credits for this major facility through the Santa Clarita Business
Park, Mello -Roos financing will be applied to the "in -tract" facilities.
In order to accomplish this, the Funding, Construction, and Acquisition Agreement (the
"Funding Agreement") calls for the City to build or cause to be built Phase I of the Golden
Valley Road Extension using all of the existing monies in the City's Eastside B&T fund.
Currently, there is approximately $4 million in the City's fund, and approximately $2.9
million in County B&T funds, for this effort. If necessary, advances of other City funds can
be made, which will then be reimbursed by future collection of Eastside B&T fees. To the
extent the B&T funds are insufficient for Phase I, loans against future Eastside B&T funds
will be used to complete construction.
Pursuant to the funding agreement, the property owned by SCBP (to be acquired by
PacTen Partners) will be formed into a Mello -Roos District, and bonds will be issued to pay
for (a) costs of Golden Valley Road Phases II and III equal to SCBP's B&T fees, and
(b) costs of in -tract infrastructure for SCBP. An annual special tax will be levied by the
district against future property owners in the Business Park. SCBP's construction costs
will be reimbursed by bond proceeds. Costs for construction of Phases II and III exceeding
SCBP's B&T obligation (currently estimated at $1.6 million) will be reimbursed to SCBP
with 70 percent of the B&T fees collected from the Eastside District after full payment is
made for Phase I improvements.
The SCBP and the City will each pay for one-half of the costs of forming the district. These
costs will be reimbursed to them from bond proceeds.
ALTERNATIVE ACTIONS
1. City Council could choose not to approve the Funding, Construction, and Acquisition
Agreement, and therefore not adopt this Resolution.
2. Other actions as identified by the City Council.
FISCAL IMPACT
The SCBP is responsible for 50 percent of the CFD formation costs, estimated to be
$90,000, and ultimately for its portion of the project to be financed with the Mello -Roos
District (costs of in -tract improvements and Phases II and III, less $1.6 million). The City
would pay for its portion of the Phase I project from the existing $4 million B&T funds,
$2.9 million County B&T funds, and advances from other City funds to be reimbursed from
future Eastside B&T fees.
ATTACHMENTS
Resolution No. 99-82
Draft of Funding, Construction, and Acquisition Agreement
council\re99-82.doc