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HomeMy WebLinkAbout2000-03-28 - AGENDA REPORTS - GVR CFD 99-1 AMEND (2)PUBLIC HEARING DATE: SUBJECT: DEPARTMENT: CITY OF SANTA CLARITA AGENDA REPORT City Manager Item to be March 28, 2000 by: Steve Stark GOLDEN VALLEY ROAD BOND ISSUE - AMENDMENT TO CFD NO. 99-1 Administrative Services RECOMMENDED ACTION City Council continue the Public Hearing to the next regularly scheduled Council meeting. 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. The landowner, Spirit, submitted a petition requesting the City to commence the proceedings to form a Community Facilities District. On September 28, 1999, the City declared its intention to form the CFD and issue bonds. On November 9, 1999, a public hearing was held, and the CFD was formed. Also, on November 9, 1999, an election was held which authorized (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. The proposition passed with an unanimous vote from the qualified voters (the landowners). On November 30, 1999, the CFD adopted Ordinance No. CFD 99-1-1, which authorized the levy of the special tax. Spirit submitted a petition to annex four more parcels into the CFD (the "Ruether Avenue Parcels") and also to modify the tax Rate and Method of Apportionment (the "RMA"), prioritize the authorized facilities to give priority for use of bond proceeds to Golden Valley r GOLDEN VALLEY BOND ISSUE March 28, 2000 — Page 2 Road Phases II and III and storm drain improvements, and to reduce the authorized maximum indebtedness amount from $33,000,000 to $18,000,000. On January 25, 2000, the CFD annexed the Ruether Avenue Parcels to the CFD and adopted a Resolution of Consideration for the changes to the CFD as referenced above. Tonight, a public hearing is scheduled on the proposed changes to the CFD. Provided there is no majority protest from property owners, a special election may be called and held tonight on the proposed changes. Waivers regarding time requirements for holding the election have been obtained from the property owners. Should the proposition pass with a two-thirds vote from the qualified electors (the landowners), the CFD may adopt a Resolution of Change and introduce for first reading the ordinance amending Ordinance No. CFD 99-1-1. The final step for the sale of the bonds will be to adopt a Resolution of Issuance and approve all the accompanying financial documents. On April 4, special Council meeting staff will be asking Council to adopt a resolution, authorizing the issuance of special tax bonds in an amount not to exceed $18,000,000 (the "Bonds") and approve various documents. The documents include: (a) a fiscal agent agreement, which includes the terms and provisions of the Bonds, (b) a continuing disclosure agreement, which sets forth the CFD's undertaking to provide information to the marketplace on an annual basis and upon the happening of certain events, (c) a bond purchase agreement which sets forth the terms and conditions for the underwriter, Stone & Youngberg LLC, to purchase the Bonds, and (d) the Preliminary Official Statement, the document which describes the Bonds to the marketplace. It is anticipated that a portion of the Bonds will be escrowed until sufficient value -to -lien ratio can be met by the property owners. The closing for the Bonds should be sometime in late April. ALTERNATIVE ACTION The Council could take no action and not adopt the Resolutions and introduce the Ordinance. FISCAL IMPACT The issuance of $18 million in Community Facilities District bonds will not have an impact on the City s general fund. The bonds will be paid by an assessment placed on the individual property owners in the Business Park. As part of the formation process, Spirit and the City shall be responsible for half each of the CFD formation costs, total estimated to be $90,000. SS:FO:hds .=m Mgv ptl NOTICE OF CONTINUED PUBLIC HEARING CITY OF SANTA CLARITA CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Santa Clarita, at its regular meeting held March 28, 2000, continued a public hearing on 18. GOLDEN VALLEY ROAD BOND ISSUE — AMENDMENT TO CFD NO. 99-1— Consideration of proposed changes to the CFD. Provided there is no majority protest from property owners, a special election may be called and held on the proposed changes. to April 25, 2000. The continued public hearing will be held at or after 6:30 p.m. in the Council Chamber at 23920 Valencia Blvd., Santa Clarita, California. Dated this 29' day of March, 2000. JQ-tea.- � SHARON L. DAWSON, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING CITY OF SANTA CLARITA ) SHARON L. DAWSON, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that on March 29, 2000, she caused the above notice to be posted at the door of the Council Chamber located at 23920 Valencia Blvd., Santa Clarita, California. SHARON L. DAWSON, CITY CLERK Santa Clarita, California .contph PUBLIC NOTICE NOTICE IS HEREBY GIVEN that on March 28, 2000, the City Council of the City of Santa Clarita introduced Ordinance 00-5 entitled: AN ORDINANCE OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING ANNEXATION AND DEVELOPMENT AGREEMENT 98-001 (MASTER CASE NO. 98- 183) TO ALLOW FOR THE 15 -YEAR DEVELOPMENT OF A 596.2 -ACRE PROPERTY KNOWN AS THE "NORTH VALENCIA NO. 2 SPECIFIC PLAN AREA" ENCOMPASSING THE 576.2 -ACRE NORTH VALENCIA 2 ANNEXATION AREA IN THE UNINCORPORATED AREA OF LOS ANGELES COUNTY ADJACENT TO THE CITY OF SANTA CLARITA. A certified copy of the complete text of the ordinance is posted and may be read in the City Clerk's Office, 23920 Valencia Boulevard, Suite 301, Santa Clarita, and/or a copy may be obtained from that office. Dated this 30`" day of March, 2000. V "L� Sharon L. Dawson, CMC, City Clerk City of Santa Clarita STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF SANTA CLARITA ) Sharon L. Dawson, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that by Thursday, March 30, 2000, she caused a certified copy of the subject ordinance to be posted and made available for public review in the City Clerk's office and a copy of the ordinance summary to be published as required by law. 5/J 5� Sharon L. Dawson, CMC, City Clerk City of Santa Cianta