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Home My WebLink About1999-11-09 - AGENDA REPORTS - GVR BOND ELECTION CFD99-1 (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presended by: Steve Stark PUBLIC HEARING DATE: November 9, 1999 SUBJECT: GOLDEN VALLEY ROAD BOND ELECTION DEPARTMENT: Administrative Services RECOMMENDED ACTION 1. City Council conduct a public hearing. 2. Adopt Resolution, establishing the City of Santa Clarita Community Facilities levy of a special tax, determining the necessity to issue. special tax bonds, and establishing an appropriations limit for the CFD. 3. District No. 99-1 (Santa Clarita Business Park) (the "CFD"), authorizing to adopt Resolution calling a special tax, bond and appropriations limit election, and conduct a special election. 4. Adopt Resolution, canvassing the results of the special election. 5. Introduce. Ordinance, authorizing the levy of a special tax. 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 Clarita 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, Adopted: IJ m 0ab P geg rda Item an GOLDEN VALLEY ROAD BOND ELECTION November 9, 1999 — Page 2 As a result, on September 28, 1999, the City declared its intention to form the Community Facilities District (CFD) and issue a maximum of $33 million in bonds. Tonight a public hearing is scheduled, as a next phase in the process of forming the district and issuing bonds. Provided there is no majority protest, the CFD will be formed. Waivers regarding election time lines from all affected taxpayers have been received. Therefore, an election can be held at this meeting to authorize (a) the levy of an annual special tax, (b) the issuance of special tax bonds not to exceed $33 million, and (c) an appropriations limit for the CFD. Should the proposition pass with a two-thirds vote from the qualified voters (the landowners), the City may adopt an ordinance levying the special tax and adopt a resolution authorizing the issuance of the first series of special tax bonds (action scheduled for November 23). The first series of bonds would likely be sold in December. 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. Spirit has deposited $35,000 to pay for half of the costs of forming the CFD. Pursuant to the Funding Agreement, the City will pay the remaining half of formation costs. ALTERNATIVE ACTION The Council not adopt Resolution. 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. ATTACHMENTS Resolution establishing the City of Santa Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) (the "CFD"), authorizing the levy of a special tax, determining the necessity to issue special tax bonds, and establishing an appropriations limit for the CFD. Resolution calling a special tax, bond and appropriations limit election, conduct a special election. Resolution canvassing the results of the special election. Ordinance authorizing the levy of a special tax. Order of Proceedings. Exhibit A - Community Facilities District Report (On File with City Clerk) Exhibit B - Community Facilities District Proposed Boundary Map SS:FO:hds rreow��a.a« NOTICE OF THE PUBLIC HEARING ON THE ESTABLISHMENT OF THE CITY OF SANTA CLARITA'S COMMUNITY FACILITIES DISTRICT 99.1 (SANTACLARITA BUSINESS PARD, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX, AND THE PROPOSED DEBT ISSUE (REVISED) The City Council of the City of Santa Clarita will hold a public hearing on the establishment of the City of Santa Clarita°s Community Facilities District No. 99-1 (Santa Clarita Business Park) (the "CFD"), the designation of certain area as future annexation area to the CFD (the "Future Annexation Area"), the proposed rate and method of apportionment of the special taxes (the "Special Taxes") to be levied on certain property within the CFD, and the Future Annexation Area, if and when annexed into the CFD, and the proposed debt issue. On September 28, 1999, the City Council of the City of Santa Clarita, California adopted a resolution stating its intention to form the CFD pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, and a resolution stating its intention to incur bonded indebtedness in the aggregate amount not to exceed $33,000,000, the repayment of which is to be secured by the Special Taxes. At the hearing, the testimony of all interested persons or taxpayers for or against the establishment of the CFD, the extent of the CFD, the designation of the Future Annexation Area, the furnishing of specified types of public facilities, or the issuance of bonded indebtedness will be heard. If the owners of one-half or more of the area of the land in the territory proposed to be included in the CFD and not exempt from the Special Tax file written protests against the establishment of the CFD, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the specified CFD or to levy the specified Special Tax shall be taken for a period of one year from the date of the decision of the Council. The voting procedure with respect to the levy of special taxes, incurrence of bonded indebtedness and establishment of appropriation limits shall be the same as a mailed ballot election, provided, however, the special election shall be conducted by personal service of the ballot. The hearing will be held by the Santa Clarita City Council in the City Hall Council Chambers, 23920 Valencia Boulevard, 1" floor, on the 9" day of November 1999, at or after 6:30 p.m. Page 2 Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the City Clerk's Office, Santa Clarita City Hall, 23920 Valencia Boulevard, Suite 301, Santa Clarita, CA. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: 10/26/99 Sharon L. Dawson, CMC City Clerk Publish Date: 10/28/99 frank\gvrpub COMMUNITY FACILITIES DISTRICT REPORT MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 Prepared for CITY OF SANTA CLARITA 23920 Valencia Boulevard, Suite 300 Santa Clarita, California 91355-2196 Prepared by DAVID TAUSSIG AND ASSOCIATES, INC. 1301 Dove Street, Suite 600 Newport Beach, California 92660 October 29, 1999 AMENDED COMMUNITY FACILITIES DISTRICT REPORT MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 Prepared for CITY OF SANTA CLARITA 23920 Valencia Boulevard, Suite 300 Santa Clarita, California 91355-2196 Prepared by DAVID TAUSSIG AND ASSOCIATES, INC. 1301 Dove Street, Suite 600 Newport Beach, California 92660 November 9 1999.,-, 1-7 F; D AT MEETING ITEM N0.