HomeMy WebLinkAboutEIA 00-02; CARLSBAD RANCH/LEGOLAND INFRASTRUCTURE FINANCING; Environmental Impact Assessment (EIA)TABLE OF CONTENTS
PAGE
SECTION 1 INTRODUCTION ................................................................................................... 1.
SECTION 2 THE IFD; MAP AND LEGAL DESCRIPTION ........................................................ 3
SECTION 3 DESCRIPTION OF PUBLIC FACILITIES
-REQUIRED TO SERVE THE DEVELOPMENT
PROPOSED FOR PARCELS 17 AND 18 ............................................................ A
Section 3.1
Section 3.2
Section 3.3
Introduction .............................................................................................. 4.
Identification of Public Facilities and lmprovements .................................. 4
Allocation of Costs to IFD Area ................................................................. 5
SECTION 4 FINDING THAT THE PUBLIC FACILITIES
(TO BE FUNDED FROM THE IFD) ARE OF
COMMUNITY-WIDE SIGNIFICANCE AND
PROVIDE SIGNIFICANT BENEFITS TO AN
AREA LARGER THAN THE AREA OF THE IFD .................................................. 7
SECTION 5 FINANCING SECTION ................................................ : ....................................... B.
Section 5.1 General .................................................................................................... 8.
Section 5.2 Maximum Portion of Incremental
Tax Revenue Committed .......................................................................... 8
Section 5.3 Projection of Tax Revenues Received
By the IFD ................................................................................................ 9.
Section 5.4 Plan for Financing Public Facilities ........................................................... .9
Section 5.5 Tax Increment Limit .................................................................................. 9
Section 5.6 Term of the IFD ....................................................................................... 10
Section 5.7 Cost/Benefit Analysis .............................................................................. 10
Section 5.7.1 Costs to the City .......................................................................... 10
Section 5.7.2 Revenues to the City .................................................................... 10
Section 5.8 Projected Fiscal lmpact ........................................................................... 12
SECTION 6 DISPLACEMENT FROM IFD ............................................................................. 14
EXHIBIT A
EXHIBITS
EXHIBITC
EXHIBITC-1
EXHIBITC-2
EXHIBITC-3
EXHIBITD
EXHIBIT D-1
EXHIBIT D-2
EXHIBIT D-3
EXHIBIT D-4
EXHIBIT D-5
EXHIBIT D-6
EXHIBITE
EXHIBITE-1
EXHIBITE-2
EXHIBITE-3
EXHIBIT E-4
APPENDIX
EXHIBITS
IFDMAP
IFD LEGAL DESCRIPTION
ELIGIBLE CAPITAL PROJECTS AND FUNDING SOURCES
Cost Summary For Capital Projects Serving IFD Area
Identification of Funding Sources for Capital Projects Serving IFD
Area
Description and Cost Allocation of Capital Projects Serving IFD Area
TAX INCREMENT REVENUE PROJECTION
Estimated Valuation of New Construction -400 Room Hotel Scenario
Incremental Property Tax Revenue -400 Room Hotel Scenario
City and County Tax Revenues -400 Room Hotel Scenario
Estimated Valuation of New Construction -700 Room Hotel Scenario
Incremental Property Tax Revenue -700 Room Hotel Scenario
City and County Tax Revenues -700 Room Hotel Scenario
COST/BENEFIT ANALYSIS
City of Carlsbad General Fund Expenditures -400 Room Hotel
Scenario
City of Carlsbad General Fund Expenditures -700 Room Hotel
Scenario
City of Carlsbad General Fund Revenues -400 Room Hotel Scenario
City of Carlsbad General Fund Revenues -700 Room Hotel Scenario
DESCRIPTIONS OF ELIGIBLE CAPITAL PROJECTS
SECTION 1
INFRASTRUCTURE FINANCING PLAN
FOR PARCELS 17 AND 18 OF THE
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
INTRODUCTION
This is the Infrastructure Financing Plan (the "Plan") establishing an Infrastructure Financing District
(the "IFD") for Parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan area in the City of
Carlsbad, County of San Diego, State of California (referred to in this Plan as "Parcels 17 and 18").
This Plan consists of text, the Infrastructure Financing District Map (Exhibit A), the Infrastructure
Financing District Legal Description (Exhibit B), the Eligible Capital Projects and Funding Sources
(Exhibit C), the Tax Increment Projection (Exhibit DJ, the Cost/Benefit Analysis(Exhibit E), and an
Appendix containing descriptions of eligible capital projects. This Plan will be implemented by the
City of Carlsbad (the "City") under the authority of and pursuant to the Infrastructure Financing
District Act of the State of California.
The definitions of general terms which are contained in the Infrastructure Financing District Act
govern the structure of this Plan unless more specific terms and definitions are otherwise provided
in this Plan.
In 1990, the State Legislature enacted Chapter 1575, which adds Chapter 2.8 (commencing with
Section 53395) to Part 1 of Title 5 of the Government Code (referred to in this Plan as the "Act"),
relating to infrastructure financing districts. In Opinion No. 97-906, issued on January 16, 1998, the
State Attorney General determined that the Act was constitutional, and that a city or county may
form an infrastructure financing district under which incremental increases in property taxes are
allocated to finance public capital facilities associated with the district.
On _____ , 1999, the City Council of the City of Carlsbad adopted a resolution of intention
to establish an infrastructure financing district for Parcels 17 and 18. The IFD includes all properties
within Parcels 17 and 18 shown on the Infrastructure Financing District Map and described in the
Infrastructure Financing District Legal Description. The IFD consists of approximately 189 acres,
all within the Carlsbad Ranch Amended Specific Plan area. The permitted land uses are set forth
in the Carlsbad Ranch Amended Specific Plan, which was approved on January 16, 1996 by
Ordinance Number (s) NS 344 SPA #207 (a) and NS 345 SPA# 207 (g) (the "Amended Specific
Plan"). In addition, the City and Lego Park Planning, Inc. have entered into a Development
Agreement with respect to the development of LEGOLAND CARLSBAD on Parcel 18, recorded
March 22, 1996 as Document No. 1996-0141299. This Plan is consistent with the General Plan of
the City, the Amended Specific Plan and the Development Agreement.
The purpose of this Plan is to provide for the financing of a portion of the cost of public works
needed for the development of Parcels 17 and 18 that benefit the broader community, described
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10114/99
Keyser Marston Associates, Inc.
Page 1
in the Schedule of Public Facilities and Improvements, with incremental increases in property taxes
from Parcels 17 and 18, subject to the limitations set forth in this Plan. The only taxing entities to
be affected by this Plan will be the City of Carlsbad and the County of San Diego.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page2
SECTION 2 THE IFD; MAP AND LEGAL DESCRIPTION
The boundaries of the IFD are illustrated on the IFD Map attached to this Plan as Exhibit A. The
legal description of the IFD is set forth in the Legal Description attached to this Plan as Exhibit B.
No part of the IFD is within a redevelopment project area which is or has been previously created
pursuant to Part 1 ( commencing with Section 33000) of Division 24 of the Health and Safety Code.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan-Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page3
SECTION 3 DESCRIPTION OF PUBLIC FACILITIES REQUIRED TO SERVE THE
DEVELOPMENT PROPOSED FOR PARCELS 17 AND 18
Section 3.1 Introduction
This section identifies the public facilities and improvements required to serve the development
proposed for Parcels 17 and 18, including their respective location, timing, and estimated cost.
As background, the IFD consists of two parcels of land, Parcels 17 and 18 of the Carlsbad
Ranch Amended Specific Plan Area. Parcel 17 is currently vacant and undeveloped, and Parcel
18 is the site of the Legoland Theme Park (Park). The Park was completed and opened in
March 1999. The Park owner, Legoland Development, has identified plans for future expansion
of, and additions to, the theme park within Parcel 18. According to Legoland Development,
proposed annual expansions will range in value from $2 million to $9 million.
A major resort hotel is planned for development on Parcel 17. The resort hotel is intended to
complement the Park as well as the municipal golf course planned to be constructed by the City
of Carlsbad adjacent to Parcel 17. Specific plans regarding the size, operator, or construction
schedule for the proposed resort hotel have not yet been identified. The quality and size of the
project is anticipated to be comparable to the existing Four Seasons Resort Aviara and La Costa
Hotel and Spa resorts located in the City of Carlsbad. •
City of Carlsbad planning staff have identified the achievable scope of the resort project on
Parcel 17 as ranging from 400 to 700 hotel rooms. The financing plan for the IFD considers
both scenarios with respect to the projection of tax increment revenues, the potential
cost/benefit to the City of Carlsbad, and fiscal impacts to affected taxing entities.
Section 3.2 Identification of Public Facilities and Improvements
The construction of the resort hotel is likely to cause impacts upon the efficiency of existing
public facilities in the IFD area and surrounding community. Additional public works projects
necessary to mitigate the impacts of the planned resort hotel, as well as the impacts of future
development in the community, have been identified by the City of Carlsbad. A number of
these projects are eligible to receive financial support from the IFD.
The Infrastructure Financing District Act identifies the nature of public works projects and
facilities that are eligible for financing by the IFD (Government Code Section 53395.3). These
include major roadway improvements, sewage treatment and water reclamation plants, water
treatment and collection facilities, flood control projects, parks, solid waste disposal stations, and
civic uses such as libraries. The Eligible Public Works required to serve the development
proposed for Parcels 17 and 18, including their respective location, timing, and estimated cost,
are set forth in Exhibit C. The City has determined that these projects are of community-wide
benefit. The projects identified in Exhibit C serve not only the IFD area, but also the larger
community, by increasing water and sewer capacity, improving traffic circulation and easing
traffic congestion, and providing needed public services such as libraries, parks, and public
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan-Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page4
administration offices to better serve the greater community. A complete-listing of the capital
projects serving the IFD area is found in Exhibit C-3 and supporting project descriptions from the
City of Carlsbad Capital Improvement Budget are found in the Appendix. The total project costs
shown in Exhibit C-3 reflect the amount of the project costs remaining to be spent while the
project descriptions in the Appendix reflect the total cost of the project through completion.
Section 3.3 Allocation of Costs to IFD Area
According to the City of Carlsbad Capital Improvement Budget for Fiscal Year 1999-2000, the
total remaining cost to complete the public improvements and facilities serving the IFD area and
surrounding community is approximately $122 million. Many California cities utilize a variety of
funding sources and mechanisms to finance these types of public works projects, including
Special Assessments, Community Facilities Districts, and Development Impact Fees. The
burden of funding public works through these funding mechanisms is ultimately borne by
developers of new construction. Fees and assessments are apportioned to new projects and
paid by developers on a fair-share basis related to the impacts that their development projects
will have on existing infrastructure and public facilities.
The funding mechanisms currently in place in the IFD area and surrounding community include
a Public Facilities Fee, a Community Facilities District Fee, a Traffic Impact Fee, and a Bridge &
Thoroughfare District Fee, among others (see Exhibit C-2). These districts and fees were
initiated by the City Council of the City of Carlsbad in recognition of the fact that present and
future development would create adverse impacts upon streets, water and sewer capacities,
and other public facilities and services.
The City of Carlsbad has apportioned a fair-share of the cost of funding these projects to the resort
hotel development proposed for Parcel 17. The cost figures are estimates based upon preliminary
assumptions regarding the development concept for the hotel project (ranging from 400 hotel rooms
to 700 hotel rooms). The total burden of fees and assessments allocated to the resort hotel project
is estimated at approximately $2.5 million for the 400-room hotel scenario and $4.5 million for the
700-room hotel scenario (see Exhibit C-1). The developer of the resort hotel will be responsible for
paying these fees and assessments at the time of issuance of building permits. On a preliminary
basis, City staff has determined that the developer of the resort hotel would be eligible for
reimbursement of fees and assessments in the range of $2.22 to $3.22 million, depending on the
size of the hotel. Pursuant to a reimbursement agreement between the developer and the IFD, the
IFD will reimburse eligible fees and assessments to the developer over time from available IFD tax
increment revenues. This reimbursement will be subject to the tax increment revenue limit set forth
in Section 5.5 below.
The following table summarizes the allocation of costs of public improvements and facilities among
the IFD (tax increment revenues), the private developer of the resort hotel, and other sources.
Other sources include the range of funding mechanisms detailed in Exhibit C. Although these
funding sources are controlled by the City of Carlsbad, they originate from fees and assessments
collected from other private developers throughout the community. As indicated in the table, the
proportion of public improvements and facilities to be funded by the IFD ranges from 1.8% to 2.6%
of the total costs.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan-Revised Draft 10114/99
Keyser Marston Associates, Inc.
Pages
Costs of Public Improvements 400-Room Hotel 700-Room Hotel
and Facilities (1) Scenario Scenario
Reimbursed by IFD (2) $2.22 million $3.20 million
% of Total 1.8% 2.6%
Funded by Developer of Resort $0.24 million $1.28 million
Hotel
% of Total 0.2% 1.1%
Funded by Other Sources (3) $119.50 million '$117.48 million
% of Total 98.0% 96.3%
Total Costs $121.95 million $121.95 million
% of Total 100.0% 100.0%
(1) Allow for rounding error.
(2) This amount is limited by: (a) the amount of fees and assessments detennined to be eligible for
reimbursement by the IFD; and {b) the tax increment limit.
(3) Fees and assessments collected from other developers.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page6 .
SECTION 4 FINDING THAT THE PUBLIC FACILITIES (TO BE FUNDED FROM THE
IFD) ARE OF COMMUNITY-WIDE SIGNIFICANCE AND PROVIDE
SIGNIFICANT BENEFITS TO AN AREA LARGER THAN THE AREA OF
THE IFD
The City Council of the City of Carlsbad hereby finds that the public facilities and improvements set
forth in Exhibit C (collectively, the "Eligible Public Works"), are of community-wide significance and
provide significant benefits to an area larger than the area of the IFD. In all cases, the Eligible
Public Works: (a) are necessary for the development to be constructed in the IFD, and (b) provide
significant benefits to the broader community in the City of Carlsbad.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan-Revised Draft 10114199
Keyser Marston Associates, Inc.
Page7
SECTION 5 FINANCING SECTION
Section 5.1 General
Incremental property tax revenues from the City of Carlsbad and from the County of San Diego (the
"County") may be used to finance the Eligible Public Works.
All taxes, if any, levied upon taxable property included within the District each year by or for the
benefit of the State of California, the City, or the County (but no other taxing entity) after the effective
date of the ordinance adopted pursuant to Government Code Section 53395.23 to create the IFD,
shall be divided as follows:
(a) That portion of the taxes which would be produced by the rate upon which the
tax is levied each year by or for each of the affected taxing eRtities upon the total
sum of the assessed value of the taxable property in the IFD as shown upon the
• assessment roll used in connection with the entity, last equalized prior to the
effective date of the ordinance adopted pursuant to Section 53395.23 to create the
IFD, shall be allocated to, and when collected shall be paid to, the respective
affected taxing entities as taxes by or for the affected taxing entities on all other
property are paid.
(b) That portion of the levied taxes each year specified in this Plan for the City and
the County in excess of the amount specified in subdivision (a) shall be allocated to,
and when collected shall be paid into a special fund of, the IFD for all lawful
purposes of the IFD. Unless and until the total assessed valuation of the taxable
property in the IFD exceeds the total assessed value of the taxable property in the
IFD as shown by the last equalized assessment roll referred to in subdivision (a), all
of the taxes levied and collected upon the taxable property in the IFD shall be paid
to the respective affecting taxing entities. When the IFD ceases to exist pursuant to
this Plan, all moneys thereafter received from taxes upon the taxable property in the
IFD shall be paid to the respective affected taxing entities as taxes on all other
property are paid.
The IFD will be effective prior to the August 20, 2000 date of equalization of the assessment roll.
On this basis, then, Fiscal Year 1999-2000 will be the base year and the assessed valuation of
the properties on the January 1, 1999 lien date will be the base year assessed value.
Section 5.2 Maximum Portion of Incremental Tax Revenue Committed
The City of Carlsbad and the County of San Diego are affected taxing entities as defined by the
Infrastructure Financing District Act (Government Code Section 53395.1 ). Under the terms of the
financing plan for the IFD, both entities will commit 100% of incremental tax revenues to the IFD in
each year during which the IFD exists. This commitment will be subject to the tax increment
revenue limit set forth in Section 5.5 below.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10114199
Keyser Marston Associates, Inc.
Page 8
Section 5.3 Projection of Tax Revenues Received by the IFD
Exhibit D presents a projection of the amount of tax revenue projected to flow to the I FD .under two
development scenarios for Parcel 17: (1) development of a 400-room resort hotel, and (2)
development of a 700-room resort hotel. Projections of the tax increment revenues for the IFD for
each year of its duration are shown in Exhibits D-3 (400-room hotel scenario) and 0-6 (700-room
hotel scenario).
Projected tax increment revenues are based upon increases in the annual incremental assessed
valuation of the IFD which result from: (1) tra·nsfers of property ownership; (2) new construction
activities; and (3) 2% annual inflationary increases allowable under Article XIIIA of the California
Constitution.
New development in the IFD will include the construction of the resort hotel and phased expansions
of the Legoland Theme Park. Legoland Development has indicated that the target date for
completion and opening of the resort hotel is the year 2002. The tax increment projection inExhibit
D assumes that tax increment revenues from the hotel development would begin to flow in Fiscal
Year 2003-2004. In addition, according to Legoland Development, expansions to the Legoland
Theme Park of varying magnitude ($2 million to $9 million per year) are planned for at least the next
10 years. These expansions will add new assessed value, which will, in turn, generate additional
tax increment. •
Under either the 400-room or the 700-room hotel scenario, the distribution of tax increment revenue
committed to the IFD by the City and County will total $1.76 million and $1.44 million, respectively
(future dollars). Under the 400-room hotel scenario, the IFD is projected to reach the tax increment
limit (set forth below in Section 5.5) by Year 10 of its existence. Under the 700-room hotel scenario,
the District is projected to reach the tax increment limit by Year 8.
Section 5.4 Plan for Financing Public Facilities
The use of the IFD tax increment revenue is restricted to the reimbursement of one-time
development impact fees and assessments related to eligible capital projects serving the area of
the IFD, as defined in Exhibit C. The developer of the resort hotel shall pay to the City of Carlsbad
all required fees and assessments at the time of building permit issuance. The IFD will reimburse
the eligible portion of these fees and assessments to the developer, as tax increment funding
becomes available over time, up to a limit of $3.2 million. The sole purpose of the IFD is to facilitate
the reimbursement of these fees. The financing plan for the IFD does not provide for the issuance
of any form of indebtedness on the part of the IFD, except to document the obligation to reimburse
the developer as provided in this section 5.4.
Section 5.5 Tax Increment Limit
The maximum amount of taxes that may be allocated to the IFD is $3.2 million.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page 9
Section 5.6 Term of the IFD
According to State law (Government Code Section 53395.14), the maximum life of al infrastructure
financing district is ''to be not more that 30 years from the date on which the ordinance forming the
district is adopted." This IFD will cease to exist on the date that is 20 years from the date of
adoption, or upon the allocation to the IFD of $3.2 million, whichever comes first.
A projection of tax increment revenues for the IFD was presented in Section 5.3 above. The tax
increment revenue projection indicates-that the IFD is estimated to achieve the limit of allocated
taxes as stated in Section 5.5 ($3.2 million), and therefore cease to exist, by the eighth year of its
operation for the 700-room hotel scenario and by the tenth year for the 400-room hotel scenario.
These projections are subject to the market performance assumptions in Exhibits D-1 through0-6.
Section 5. 7 Cost/Benefit Analysis
Section 5. 7 .1 Costs to the City
This section addresses both the one-time capital costs to the City of providing facilities to the IFD
area and the recurring annual costs to the City of providing services to the IFD area.
As shown in the table below, the costs to the City to provide facilities to the IFD area are estimated
to range from $2.5 million to $4.5 million.
Costs of providing services to the IFD were estimated based on the City's General Fund
expenditures for Fiscal Year 1998-1999. As shown in Exhibits E-1 and E-2, a correlation between
municipal service costs and population/employment factors can be used to project incremental
General Fund expenditure impacts on a per-resident and per-resident equivalent basis. The
standard approach involves estimating the relative impacts on municipal service expenditures of
new residents and new jobs within the City. A typical assumption in fiscal import methodology is
that three new jobs have the municipal service impacts of one new resident.
Build-out of the IFD area is not expected to generate new population. However, the anticipated
employment can be expressed as a total of 418 resident equivalents under the 400-room hotel
scenario and 493 resident equivalents under the 700-room hotel scenario. Based on these
assumptions, build-out of the IFD area is projected to generate recurring annual General Fund
expenditure impacts of $213,000 per year under the 400-room hotel scenario, and $252,000 under
the 700-room hotel scenario. These estimates are expressed in current (1999) dollars.
Section 5.7.2 Revenues to the City
This section addresses both one-time capital and recurring annual revenues to the City resulting
from expected development in the IFD area.
As shown in the table below, the City will receive fees and assessments from the developer of the
hotel property ranging from $2.5 million to $4.5 million. These revenues fully offset the anticipated
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page·10
costs to City to provide facilities to the IFD area.
The City will also receive a range of building permit and plan check fees related to expansions of
the Legoland Theme Park and the development of the resort hotel. The amount of building
permit and plan check fees that could be received has been estimated by the City to range from
between $470,000 to $1,060,000. These revenues can be expected to offset the City's costs of
providing services related to the planning and building approval process.
Recurring annual taxes and other revenues resulting from development activity within the IFD area
were estima~ed for both the 400-room hotel scenario and the 700-room hotel scenario,· as presented
in Exhibits E-3 and E-4.
Annual property taxes generated within the IFD area are estimated to total $1.5 million. This
estimate was determined by applying the City's 19.3% share of the 1 % property tax to the estimated
base year value of Parcel 18 (Legoland Theme Park) and Parcel 17 (Hotel). On this basis, then,
base-year property tax revenues from the IFD area to the City of Carlsbad are estimated to total
$296,000 annually (all figures represent 1999 dollars).
Sales tax generated within the IFD area at the Legoland Theme Park and the proposed resort hotel
were estimated for both the 400-room hotel scenario and 700-room hotel scenario. Based on retail
sales estimates provided by Legoland Development, and projections of retail, food, and beverage
sales at the resort hotel proposed for Parcel 17, annual sales tax to the City is estimated to total
$463,000 under the 400-room hotel scenario and $563,000 under the 700-room hotel scenario.
Transient Occupancy Tax (TOT) revenues generated from the proposed resort hotel were
determined based on application of the City's 10.0% TOT rate to projected hotel room revenues.
Under _the 400-room hotel scenario, annual TOT revenues are estimated to total $1. 7 million.
Under the 700-room hotel scenario, $2.9 million annually from TOT is anticipated.
Other recurring annual revenues to the City resulting from development within the IFD area were
based on estimated General Fund revenues for Fiscal Year 1998-1999 and application of the per
capita approach described above in Section 5.7.1. As indicated in Exhibits E-3 and E-5, total
recurring General Fund revenues inclusive of all taxes and other revenue sources, are estimated
to total $2.5 million under the 400-room hotel scenario, and $3.9 million under the 700-room hotel
scenario.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
Page 11 .
Costs Revenues
One-Time Capital Impacts
400-Room $2.5 million for facilities Developer of hotel property
Hotel Scenario serving IFD area. will be responsible for
{$119.5 million in additional payment of $2.5 to $4.5
community-wide million in fees and
improvements). assessments upon
issuance of building
permits. The Developer will
700-Room $4.5 million for facilities be reimbursed for eligible
Hotel Scenario serving IFD area. fees and assessments up to
($117.5 million in additional a maximum of $3.2 million
community-wide from IFD tax increment
improvements). revenues from the
Infrastructure Financing
District.
Recurring Annual Impacts
400-Room $213,000 $2,490,000
Hotel Scenario
700-Room $252,000 $3,860,000
Hotel Scenario
Section 5.8 Projected Fiscal Impact
The total projected fiscal impact of the IFD and associated development on the affected taxing
entities (City and County) is shown in the table below. The fiscal impact can be expressed as the
amount of tax revenue that is foregone by the City and County to the IFD. During the life of the IFD,
the total foregone tax increment to the City of Carlsbad is estimated to have a future value of $1. 76
million and a net present value ranging from $925,000 under the 400-room hotel scenario to
$1,016,000 under the 700-room hotel scenario.
The fiscal impact of the IFD on the County of San Diego is projected to have a Mure value of $1.44
million and a net present value of $757,000 under the 400-room hotel scenario and $831,000
under the 700-room hotel scenario. •
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan-Revised Draft 10/14/99
Keyser Marston Associates, Inc.
Page 12
Foregone Tax Increment City of Carlsbad
400-Room Hotel Scenario
Future Value $1,760,000
Present Value @ 10% $925,000
Discount Rate
700-Room Hotel Scenario
Future Value· $1,760,000
Present Value @ 10% $1,016,000
Discount Rate
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
County of San Diego
$1,440,000
$757,000
$1,440,000
$831,000
Page 13
SECTION 6 DISPLACEMENT FROM IFD
No dwelling units occupied by persons or families of low or moderate income are proposed to be
removed or destroyed in the course of private development or public works construction within the
area of the IFD.
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10114199
Keyser Marston Associates, Inc.
Page 14
EXHIBITS
IFD LEGAL DESCRIPTION
LEGOLAND PARCEL -Lot 18, Map No. 13408 (CT 94-09)
RESORT HOTEL PARCEL-Lot 17, Map No. 13408, (CT 94-09) and a Portion of Lot
F, M823
Infrastructure Financing Plan for Parcels 17 and 1 B of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
EXHIBIT C
ELIGIBLE CAPITAL PROJECTS AND FUNDING SOURCES
EXHIBIT C-1
EXHIBIT C-2
EXHIBIT C-3
COST SUMMARY FOR CAPITAL PROJECTS SERVING
IFDAREA
IDENTIFICATION OF FUNDING SOURCES FOR
CAPITAL PROJECTS SERVING THE IFD AREA
DESCRIPTION AND COST ALLOCATION OF
CAPITAL PROJECTS SERVING IFD AREA
lnfrastrudure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
EXHIBITC-1
COST SUMMARY FOR CAPITAL PROJECTS SERVING IFD AREA
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Public Community Facilities District #1 Traffic Bridge& Cost of Capltal Projects
Funding Facllltles Impact Non-Residential Thoroughfare Total Total
Mechanisms 111 Fus Eligible Ineligible (41 Fee Sewer Fee Water Fee Park Fee Distrlct#3 Ellalble lnellglble
Total Cost of
Capital Projects (2) $29,270,560 $20,954,353 $28,439,000 $4,624,020 $26,068,731 $9,591,838 $1,874,184 $1,131,775 $93,515,461 $28,439,000
400-Room Hotel Scenario
Funded by Hotel $728,000 $521,628 $0 $94,286 $279,689 $100,000 $80,000 $652,823 $2,218,477 $239,949
Developer/lFD (3)
Funded by Other Sources $28,542,560 $20,432,725 $28,439,000 $4,529,734 $25,789,042 $9,491,838 $1,794,184 $478,952 $91,298,984 $28,199,051
700-Room Hotel Scenario
Funded by Hotel $1,274,000 $1,344,982 $0 $165,000 $489,456 $350,000 $200,000 $652,823 $3,857,589 $618,892
Developer/lFD (3)
Funded by Other Sources $27,996,560 $19,609,371 $28,439,000 $4,459,020 $25,579,275 $9,241,838 $1,674,184 $478,952 $89,857,892 $27,820,308
(1) See Exhibit C-2 for descriptions of each funding mechanism.
(2) Figures provided by City of Carlsbad. See Exhibit C-3 for detail the individual capital projects.
(3) IFD tax increment revenue limit is $3.2 million. Portion of fees and assessments in excess of $3.2 million and ineligible fees and assessments will be funded by developer of resort hotel.
(4) Two projects funded by the Community Facilities District #1 do not meet the statutory definition of projects that are eligible for IFD financing. The City has pro-rated the
amount of CFD #1 taxes paid by the developer of the hotel project between eligible and ineligible uses.
Source: City of Ca~sbad
Prepared by: Keyser Marston Associates, Inc.
Filename: C:lmydocslclients\legolFD\rev3_Capltal Project Serving IFD; 10/14/99; erg
Grand Total
$121,954,461
$2,458,428
$119,498,035
$4,478,281
$117,478,200
EXHIBITC-2
IDENTIFICATION OF FUNDING SOURCES FOR CAPITAL PROJECTS SERVING IFD AREA
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN
Funding Mechanism Description Sources of Funding
Public Facilities Fee Development-related service fee Fee is based upon the value of building
established to mitigate public service and permits (3.5%). Properties also in CFO
facilities impacts created by new #1 shall pay only 1.82% of value.
development (libraries and civic buildings).
Fee structure adopted by Carlsbad City
Council in June of 1992.
Community Facilities District #1 Established in 1991 to provide a Fee is paid by all new development
guaranteed source of funds for City-within the CFD #1 district.
provided facilities such as parks, major
streets, traffic signals, storm drains,
bridges, etc.
Traffic Impact Fee Established in 1996 to impose a fee on new Fee is paid by new development based
developments to mitigate the fiscal impacts upon the average daily trips generated
of new development on the City's roadway by the type of development.
system.
Sewer/Water Fees Per City of Carlsbad Development Fee is paid by new development as a
Processing Fees Schedule. Development Impact Fee.
Non-Residential Park Fee Per City of Carlsbad Development Fee is paid by new development as a
Processing Fees Schedule. Development Impact Fee.
Bridge & Thoroughfare District #3 District formed to meet the requirement of Funded by new development. Fees
Zones 8,. 5, 13, and 24 to establish are based upon the traffic generation
financing plan to construct Cannon Road stimulated by the type of development
West from Car Country Drive to El Camino (ADT).
Real.
Source: City of Carlsbad
Prepared by: Keyser Marston Associates, Inc.
FIiename: C:\mydocs\cllents\legolfd\rev3_Capltal Project Serving IFD:10/14/99; erg
EXHIBITC-3
DESCRIPTION AND COST ALLOCATION OF CAPITAL PROJECTS SERVING IFD AREA (1)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Publlc
Projects DescriPllon Schedule FacllH!!! Fees
Clv/e Pro/eels
Administrative Facilities• Design and construction of a 2003-2008
City Hall City Hall and City Council
Chambers.
Administrative Facilities -Construction of Phase II of 1998-1999
Public Wor1<s Center the Public Safety and Service
Center project.
Administrative Facilities -Construction of new City 1998-2020 9,400,000
Faraday Building administrative offices at
Camino Hills Olive and
Faraday Road.
Police and Fire Facilities • Construction of a 3,500-SF 2003-2008 895,000
Fire Station #3 Relocation suburban facility.
Library Facilities -Cole Expansion and remodeling of 2009-2020 8,320,000
Library Expansion existing library from 24,600
SF to 44,600 SF.
Library Facilities -Cole Renovation of the existing 1998-2000 1,913,842
Library Remodel library.
Community Facillttes District Costs to administer 1998-2020
#1 Administration Community Facilities District
#1.
Parle Pm/eels
Business Par1< Recreation Purchase and development 1999-2001
Facility of a par1< site.
Cannon Lake Par1< Design and construction of 2009-2020 947,000
par1< amenities and public
art.
Veteran's Memorial Par1< Design and construction of 2003-2020 .
par1< amenities and public art
per Master Plan.
Sewer Pro/ects
Enclna Water Pollution Construction and 1999-2000
Control Facility • improvement of existing
Building Improvements building facilities at Encina
WPCF.
Enclna Water Pollution Various capital 1999-2020
Control Facility Improvements at Encina
Capital AcqulsiUons • Unit 1 WPCF.
Source: City of Ca~sbad
Prepared by: Keyser Man;ton Associates, Inc.
FIiename: C:lmydocslctlants~egoifd\rev3_Capital Project Serving IFD; 10/14199; erg
Communltv Facllltles District #1 Bridge& Total Cost of c■ettal Prolects
Traffic Non-Resldentlal Thoroughfare
Ellalble Projects lnellglble Projects (21 Impact Fees Sewer Fee wmr£!! Park Fee Dlstrict#3 Ellglble !J!.!!jal_bl!_Q)
26,019,00C 26,019,000
4,087,281 500,000 . 4,587,28(
. . 9,400,00C
-. 895,00C
4,460,00C . . 12,780,00C
-. . . -1,913.84
2,420,00C . . . . -2,420,000
. 1,874,184 1,874, 18'
. . -. . 947,00C
7,884,50( -7,884,50(
367,232 . -367,23:l
1,156,665 . . . 1,156,66!
EXHIBITC-l
DESCRIPTION AND COST ALLOCATION OF CAPITAL PROJECTS SERVING IFD AREA (1)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 11
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Community Facllltles District #1 Bridge& Total Cost of C•!!lt•I Projects
Publlc Trame Non-Resldentlal Thoroughfare
Protects Description ~chedUI! Facllltles Fees Eligible Projects ~Jlglble Projects (21 lm11act Fees Sewer Fee Water Fee ~arkF~ Dlstrlct#3 Eligible
Street Projects (Cont'd.)
Circulation System Street Widening of Cartsbad Blvd. 1999-2020 2,000,000 . 2,000,000
Projects -Cartsbad from 2 lanes to 4 lanes with a
Boulevard and Cannon center raised median.
Road Widening
Circulation System Street Creation of Intersection 1998-2000 682,885 682,885
Projects -Intersection of El improvements which indude
Camino Real and Faraday three exdusive rtght turns,
Avenue curb, gutter. paving, &
sidewalks.
Circulation System Street Construction of 1999-2000 4,423,83€ . 4,423,836
Projects. Faraday improvements to controlled
Extension South of Cannon collector standards.
Road
Circulation System Traffic Construction of a 4-phase, 1999-2000 110,000 . . 110.00C
Signals -Cannon Road and fully actuated traffic signal.
Faraday Avenue
Circulation System Street Construction of dual left-tum 2009-2020 160,000 . . . 160,00C
Projects • Palomar Airport lane on College Blvd.
Road and College southbound to eastbound.
Boulevard
Circulation System Straet Widen the easterty approach 1999-2020 480.000 . 480,00C
Projects • Palomar Airport of PAR at Paseo Del Norte to
Road Vllidening at Paseo accommodate an additional
Del Norte through lane.
Circulation Syslem Street Reconstruct old interchange 2003-2020 7,200,000 . 7,200,000
Projects -Palomar Airport and connect Palomar Airport
Road Vllidening and Bridge Road to Cartsbad Blvd.
Reconstruction.
Totals 29,270,560 20,954,353 21,439,000 4,624,020 26,068,731 9,591,131 1,174,114 1,131,775 93,515,461
(1) See Exhibit C-2 for detailed desaiptions of each funding mechanism.
(2) Two projects funded by the Community Facilities District #1 do not meet the statutory definition of projects that ara eligible for IFD financing. The City has pro-rated the amount of CFO #1 taxes paid by the developer of the hotel project between eligible
and Ineligible uses.
Source: City of Cartsbad
Prepared by: Keyser Marston Associates, Inc.
Filename: C:lmydocsldientsVegoifd\rev3_Capital Project Serving IFD: 10/14199; erg
lnellglble (2)
21,439,001
EXHIBITC-3
DESCRIPTION AND COST ALLOCATION OF CAPITAL PROJECTS SERVING IFD AREA (1)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Publlc
l!!:!!1..~ Descrll!!Jlm Schedule Facllltles Fees
Rec/aimed Water ProJects
Recycled water -Industrial Develop recycled water 1999-2001
Parl<System system to College Business
Park, Cartsbed Research
Center, Carlsbad Airport
Center, and Olympic Resort.
Recycled water Projects -Construclion of a 1998-1999
1-5 Reclaimed Water transmission pipeline from
Transmission Line Poinsettia Lane to Jellerson
Street.
Recycled Water -Pump Upgrade existing pumps to 1999-2000 .
Station Upgrade maintain level control. Also
construct a pennanent
endosure.
Trame S.!Jl.n•I Pro~ts
Clrculaflon System Traffic Installation of a 5-phase, fully 2003-2008 110,000
Signals -Cannon actuated traffic signal.
Road/Avenida Encinas
Circulation System Traffic Installation of an 8-phase, 2003-2009 125,000
Signals -CaMon fully actuated traffic signal.
Road/College Boulevard
Street Pro/ects
Circulation System Street Addition of 1 westbound 1999-2000 69,718
Projects -Cannon Road -1-5 traffic lane.
to Paseo Del Norte
Circulation System Street Construction of a major 4-1998-2020
Projects -Cannon Road lane arterial road from Lego
West Drive to El Camino Real.
Circulation System Traffic Construction of a traffic 1998-2021 180,000
Signals • El Camino Real signal as part of the Cannon
and Cannon Road Rd. West 4~ane major road
project.
CaMon Road West IMdening of El Camino Real 1998-1999
Intersection (El Camino north and south of the future
Real) Cannon Road Intersection to
accommodate dual left tum
lanes.
Source: City of Carlsbad
Prepared by: Keyser Marston Associates, Inc.
Filename: C:\mydocs\ctlentsVegolfdlrev3_Capital Project S81Ving IFD; 10114/99; ag
Communltv Faclllttes District #1 Bridge& Total Cost of Caf!ltal Projects
Traffic Non-Residential llloroughfant
Ellalble ProJects lnellglble ProJects J2) Impact Fees Sewer Fee Water Fee Park Fee Dlstrlct#3 ~ lnellglble (2)
. 1,000,000 . 1,000,00(
140,000 . 140,00(
. . 400,000 400,00(
. 110,00C
-. 125,00(
152,176 . . . 221,89'
98,737 . . . 1,131,775 1,230,51,
. 180,00C
1,148,959 . 1,148,95!
EXHIBIT D
TAX REVENUE PROJECTION
Exhibit D-1
. Exhibit D-2
Exhibit D-3
Exhibit D-4
Exhibit D-5
Exhibit D-6
Estimated Valuation of New Construction -
400-Room Hotel Scenario
Incremental Property Tax Revenue -400-
Room Hotel Scenario
City and County Tax Revenues -400-
Room Hotel Scenario
Estimated Valuation of New Construction -
700-Room Hotel Scenario
Incremental Property Tax Revenue-700-
Room Hotel Scenario
City and County Tax Revenues -700-
Room Hotel Scenario
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan Area -Revised Draft 10/14199
Keyser Marston Associates, Inc.
EXHIBIT D-1 400 ROOM HOTEL SCENARIO
ESTIMATED VALUATION OF NEW CONSTRUCTION ($000s)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Base FY00 FY01 FY02 FV03 FY04 FY0S FY0& FY07 FY08 FY09 FY10
Value Q ! ~ ~ ~ 5 i z ! ' 10
Inflation Assumption @ 0% 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
rt''"
·~ Parcel 18/Thome Park $135,709 (1)
Phase I
Expansion Improvements $3,400 $7,400 $2,200 $4,500 $2,300 $3,200 $4,100 $3,200 $3,200 $9,000
Subtotal $3,400 $7,400 $2,200 $4,500 $2,300 $3,200 $4,100 $3,200 $3,200 $9,000
Parcel 17/Hotel $3,151 (1)
Inflation Assumption @ 2% 1.00 1.02 1.04 1.06 1.08 1.10 1.13 1.15 1.17 1.20 1.22
Hotel@ 400 rooms $Q $Q $Q $70,000 $Q $Q $Q $Q $Q $Q
$175,000 per room $0 $0 $0 $75,770 $0 $0 $0 $0 $0 $0
!GRAND TOTAL $3,400 s1,400 $2,200 sao.210 s2.3oo $3,200 $4,100 $3,200 $3,200 $9,ooo I
(1) Assessed value as of January 1, 1999 lien date.
Prepared by: Keyser Marston Associates, Inc.
Filename:c:\My Docs Lego_ 400; 10/14/99:sas
EXHIBITD-2
INCREMENTAL PROPERTY TAX REVENUE ($000s)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Parcel 18frheme Park.
Phase I
Existing Parcel Value
Real Property @
Add: New Expansion Improvements
Total Real Property
Parcel 17/Hotel
Hotel @ 400 Rooms
Existing Parcel Value
Real Property @
Add: Hotel Value
Total Real Property
Total Project Value
Total Project Value
(Less) Base Value Parcel 18
(Less) Base Value Parcel 17
Incremental Value
Property Tax Rate
102%
102%
!Incremental Property Tax Revenue ($00O's)
Prepared by: Keyser Marston Associates, Inc.
Filename:c:\My Docs Lego_ 400; 10/14/99;sas
FY00
Q
$135,709
$0
$135,709
$135,709
$0
$3,151
$3,151
$0
$3,151
$138,859
FY01
1
$138,423
$3,400
$141,823
$3,214
$0
$3,214
$145,037
($135,709)
($3,151)
$6,177
1.0%
$62
FY02
£
$144,660
$7,400
$152,060
$3,278
$0
$3,278
$155,337
($135,709)
($3,151)
$16,478
1.0%
$165
FY03
l
$155,101
$2,200
$157,301
$3,343
$0
$3,343
$160;644
($135,709)
($3,151)
$21,785
1.0%
$218
400 ROOM HOTEL SCENARIO
FY04
1
$160,44_7
$4,500
$164,947
$0
$75,770
$75,770
$240,717
($135,709)
($3,151)
$101,858
1.0%
$1,019
FY0S
§.
$168,246
$2,300
$170,546
$0
$77,286
$77,286
$247,831
($135,709)
($3,151)
$108,972
1.0%
$1,090
FY06.
~
$173,957
$3,200
$177,157
$0
$78,831
$78,831
$255,988
($135,709)
($3,151)
$117,128
1.0%
$1,171
FY07
r
$180,700
$4,100
$184,800
$0
$80,408
$80,408
$265,208
($135,709)
($3,151)
$126,348
1.0%
$1,263
FY0S
§
$188,496
$3,200
$191,696
$0
$82,016
$82,016
$273,712
($135,709)
($3,151)
$134,852
1.0%
$1,349
FY09
'
$195,530
$3,200
$198,730
$0
$83,656
$83,656
$282,386
($135,709)
($3,151)
$143,527
1.0%
$1,435
FY10
10
$202,704
$9,000
$211,704
$0
$85,330
$85,330
$297,034
($135,709)
($3,151)
$158,174
1.0%
$1,582 I
EXHIBITD-3
CITY AND COUNTY TAX REVENUES ($000s)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
FY00 FY01
Tax Revenues
!Incremental Property Tax Revenue ($000's)
City Share of 1 % @ 19.3%
County Share of 1 % @ 15.8%
Total City/County Share
Total City/County Share Allocated @ 100%
!Cumulative Tax Increment Revenue
(Less) City Administration Fee
(Less) County Auditor Fee
Net Available Tax Increment Revenue
Prepared by: Keyser Marston Associates, Inc.
Filename:c:\My Docs Lego_ 400; 10/14/99:sas
~ 1
$62
$12
1.1.Q
$22
$22
$22
$0
($11
$18
FY02 FY03
i ~
$165 $218
$32 $42
m ~
$58 $76
$58 $76
$79 $156
$0 $0
($11 ($11
$54 $72
400 ROOM HOTEL SCENARIO
FY04 FY0S FY06 FY07 FY0B FY09 FY10
~ ~ ~ I § I 10
$1,019 $1,090 $1,171 $1,263 $1,349 $1,435 $1,582
$196 $210 $226 $244 $260 $277 $263
$161 $172 $185 $199 $213 $226 $lli
$357 $382 $410 $443 $472 $503 $477
$357 $382 $410 $443 $472 $503 $477
$513 $894 $1,305 $1,747 $2,220 $2,723 $3,200
$0 $0 $0 $0 $0 $0 $0
~ ~ ~ .($fil {$Z} {$fil .($!Q}
$352 $377 $405 $437 $465 $495 $468
EXHIBITD-4 700 ROOM HOTEL SCENARIO
ESTIMATED VALUATION OF NEW CONSTRUCTION ($000s)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Base FY00 FY01 FY02 FY03 FY04 FY0S FY06 · FY07 FY0S
Value 0 1 ~-~ ~ § 6 7 8
Inflation Assumption @ 0% 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Parcel 18/Theme Park $135,709 (1)
Phase I
Expansion Improvements $3,400 $7,400 $2,200 $4,500 $2,300 $3,200 $4,100 $3,200
Subtotal $3,400 $7,400 $2,200 $4,500 $2,300 $3,200 $4,100 . $3,200
Parcel 17/Hotel $3,151 (1)
Inflation Assumption @ 2% 1.00 1.02 1.04 1.06 1.08 1.10 1.13 1.15 1.17
Hotel@ 700 rooms IQ IQ IQ $122,500 IQ IQ IQ IQ
$175,000 per room $0 $0 $0 $132,598 $0 $0 $0 $0
!GRAND TOTAL $3,400 $1,400 $2,200 $137,o9a $2,300 $3,200 $4,100 $3,200 1
( 1) Assessed value as of January 1, 1999 lien date.
Prepared by: Keyser Marston Associates, Inc.
Filename:c:\My Docs Lego_700; 10/14/99;sas
EXHIBITD-5
INCREMENTAL PROPERTY TAX REVENUE ($000s)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Parcel 18/Theme Park
Phase I
Existing Parcel Value
Real Property @
Add: New Expansion Improvements
Total Real Property
Parcel 17/Hotel
Hotel @ 700 Rooms
Existing Parcel Value
Real Property @
Add: Hotel Value
Total Real Property
Total Project Value
Total Project Value
(Less) Base Value Parcel 18
(Less) Base Value Parcel 17
Incremental Value
Property Tax Rate
102%
102%
!Incremental Property Tax Revenue ($000's)
Prepared by: Keyser Marston Associates, Inc.
Fllename:c:\My Docs Lego_700; 10/14/99:sas
FY00
Q
$135,709
$0
$135,709
$135,709
$0
$3,151
$3,151
$0
$3,151
$138,859
FY01
1
$138,423
$3,400
$141,823
$3,214
$0
$3,214
$145,037
($135,709)
($3,151)
$6,177
1.0%
$62
FY02
~
$144,660
$7,400
$152,060
$3,278
$0
$3,278
$155,337
($135,709)
($3,151)
$16,478
1.0%
$165
0700 ROOM HOTEL·SCENARIO
FY03
~
$155,101
$2,200
$157,301
$3,343
$0
$3,343
$160,644
($135,709)
($3,151)
$21,785
1.0%
$218
FY04
~
$160,447
$4,500
$164,947
$0
$132,598
$132,598
$297,545
($135,709)
($3,151)
$158,685
1.0%
$1,587
FY0S
§
$168,246
$2,300
$170,546
$0
$135,250
$135,250
$305,796
($135,709)
($3,151)
$166,936
1.0%
$1,669
FY0&
§
$173,957
$3,200
$177,157
$0
$137,955
$137,955
$315,111
($135,709)
($3,151)
$176,252
1.0%
$1,763
FY07
'!..
$180,700
$4,100
$184,800
$0
$140,714
$140,714.
$325,514
($135,709)
($3,151)
$186,654
-1.0%
$1,867
FY08
§
$188,496
$3,200
$191,696
$0
$143,528
$143,528
$335,224
($135,709)
($3,151)
$196,365
1.0%
$1,964 l
EXHIBIT D-6
CITY AND COUNTY TAX REVENUES ($000s)
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
FY00 FY 01
Tax Revenues
I Incremental Property Tax Revenue ($000's)
City Share of 1 % @ 19.3%
County Share of 1 % @ 15.8%
:
Total City/County Share
Total City/County Share Allocated@ 100%
!cumulative Tax Increment Revenue
(Less) City Administration Fee
(Less) County Auditor Fee
Net Available Tax Increment Revenue
Prepared by: Keyser Marston Associates, Inc.
Filename:c:\My Docs Lego_700; 10/14/99;sas
Q 1
$62
$12
.$1Q
$22
$22
$22
$0
{$11
$18
FY02
1
$165
$32
~
$58
$58
$79
$0
{$11
$54
700 ROOM HOTEL SCENARIO
FY03 FY04 FY0S FY06 FY07 FY0S
~ ~ ~ i z I
$218 $1,587 $1,669 $1,763 $1,867 $1,964
$42 $306 $322 $340 $360 $348
™ $250 $263 $278 $294 $284
$76 $556 $585 $6°18 $654 $632
$76 $556 $585 $618 $654 $632
$156 $712 $1,297 $1,914 $2,568 $3,200
$0 $0 $0 $0 $0 $0
{$11 .(ifil .(ifil .(ifil {$fil {$Z1
$72 $551 $580 $612 $648 $625
EXHIBIT E
COST BENEFIT ANALYSIS
Exhibit E-1
Exhibit E-2
Exhibit E-3
Exhibit E-4
City of Carlsbad General Fund
Expenditures -400-Room Hotel Scenario
City of Carlsbad General Fund
Expenditures -700-Room Hotel Scenario
City of Carlsbad General Fund Revenues -
400-Room Hotel Scenario
City of Carlsbad General Fund Revenues -
700-Room Hotel Scenario
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan Area -Revised Draft 10/14199
Keyser Marston Associates, Inc.
EXHIBIT E-1 400 ROOM HOTEL SCENARIO
CITY OF CARLSBAD GENERAL FUND EXPENDITURES
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Baseline Assumptions Carlsbad (1998)
Population 73,688
Total Number of Jobs 46,109
Number of Hotel Rooms
0.75 Employees Per Room
Equivalent Residents 15,370
3 jobs = 1 resident
Total Resident Equivalents 89,058
General Fund Revenue Expenditures FY 1998-1999 Expenditures
Per Resident or
Total or Resident Equivalent
Policy Leadership Group $2,312,000 $26 Per Resident Equivalent
Adminstrative Services $2,998,000 $41 Per Resident
Public Safety $20,029,000 $225 Per Resident Equivalent
Community Development $4,777,000 $54 Per Resident Equivalent
Community Services $6,912,000 $94 Per Resident
Public Works $11,117,000 $125 Per Resident Equivalent
Non-Departmental $3,282,000 $37 Per Resident Equivalent
Contingencies $3,944,000 $44 Per Resident Equivalent
Total General Fund Ex enditures $55,371,000
(1) Represents mid-point of peak and off-peak employment. Assumes 658 full-time and
592 seasonal/part-time positions.
Prepared by: Keyser Marston Associates, Inc.
Filename c:\carlsbad\legoland\rev _fiscalimpact; 10/14/99; lag
IFD Area
Projected Residents
or Resident Equivalents
418
0
418
418
0
418
418
418
IFD Area
n/a
954
400
300
418
418
Total Impact
$11,000
$0
$94,000
$22,000
$0
$52,000
$15,000
$19,000
$213,000
(1)
EXHIBITE•2 700 ROOM HOTEL SCENARIO
CITY OF CARLSBAD GENERAL FUND EXPENDITURES
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Baseline Assumptions Carlsbad {1998)
Population 73,688
Total Number of Jobs 46,109
Number of Hotel Rooms
0.75 Employees Per Room
Equivalent Residents 15,370
3 jobs = 1 resident
Total Resident Equivalents 89,058
General Fund Revenue Expenditures FY 1998-1999 Expenditunts IFDAnta
Per Resident or Projected Residents
Total or Resident Equivalent or Resident Equivalents
Policy Leadership Group $2,312,000 $26 Per Resident Equivalent
Adminstrative Services $2,998,000 $41 Per Resident
Public Safety $20,029,000 $225 Per Resident Equivalent
Community Development $4,777,000 $54 Per Resident Equivalent
Community Services $6,912,000 $94 Per Resident
Public Works $11,117,000 $125 Per Resident Equivalent
Non-Departmental $3,282,000 $37 Per Resident Equivalent
Contingencies $3,944,000 $44 Per Resident Equivalent
Total General Fund Expenditures $55,371,000
(1) Represents mid-point of peak and off-peak employment. Assumes 658 full-time and
592 seasonal/part-time positions.
Prepared by: Keyser Marston Associates, Inc.
Filename c:\carlsbacl\legoland\rev_fiscalimpact; 10/14/99;1ag
493
0
493
493
0
493
493
493
IFDArea
n/a
954
700
525
493
493
Total Impact
$13,000
$0
$111,000
$26,000
$0
$62,000
$18,000
$22,000
$252,000
(1)
EXHIBITE-3 400 ROOM HOTEL SCENARIO
Cl1Y OF CARLSBAD GENERAL FUND REVENUES
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Baseline Assumptions
Population
Total Number of Jobs
Equivalent Residents
Total Resident Equivalents
General Fund Revenue Source
Carlsbad (1998)
73,688
46,109
15,370
3 jobs = 1 resident
89,058
FY 1998-1999 Revenues
Number of Hotel Rooms
0.75 Employees Per Room
IFDArea
Projected Residents
IFD Area
n/a
954
400
300
418
418
Per Resident or
Total or Resident Equivalent or Resident Equivalents Total Impact
Property Tax (2)
Sales Tax (2)
Transient Occupancy Tax (2)
Other Taxes (3)
Licenses and Permits
Vehicle License Fees
Charges for Services
Fines and Forfeitures
Interest
lntertlepartmental Charges
Other Revenue Sources
Total General Fund Revenues
$13,300,000
$15,240,000
$5,775,000
$2,225,000 $25 Per Resident Equivalent
$4,610,000 $52 Per Resident Equivalent
$3,110,000 $42 Per Resident
$6,990,000 $95 Per Resident
$440,000 $6 Per Resident
$1,500,000 $17 Per Resident Equivalent
$1,650,000 $19 Per Resident Equivalent •
$530,000 $6 Per Resident Equivalent
$55,370,000
(1) Represents mid-point of peak and off-peak employment. Assumes 658 full-time and
592 seasonal/part-time positions.
(2) Confidential worksheet submitted to City under separate cover .
. (3) Includes Franchise and Transfer Tax.
Prepared by: Keyser Marston Associates, Inc.
Filename c:\carlsbad\legoland\rev _fiscalimpact; 10/14/99;1ag
418
418
0
0
0
418
418
418
$296,000
$463,000
$1,682,000
$10,000
$22,000
$0
$0
$0
$7,000
$8,000
$2,000
$2,490,000
(1)
EXHIBITE-4 700 ROOM HOTEL SCENARIO
CITY OF CARLSBAD GENERAL FUND REVENUES
INFRASTRUCTURE FINANCING PLAN FOR PARCELS 17 AND 18
CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA
Baseline Assumptions
Population
Total Number of Jobs
Carlsbad (1998)
73,688
46,109
Number of Hotel Rooms
0. 75 Employees Per Room
Equivalent Residents
Total Resident Equivalents
General Fund Revenue Source
Property Tax (2)
Sales Tax (2)
Transient Occupancy Tax (2)
Other Taxes (3)
Licenses and Permits
Vehicle License Fees
Charges for Services
Fines and Forfeitures
Interest
Interdepartmental Charges
Other Revenue Sources
Total General Fund Revenues
15,370
3 jobs = 1 resident
89,058
FY 1998-1999 Revenues
Per Resident or
Total or Resident Equivalent
$13,300,000
$15,240,000
$5,775,000
$2,225,000 $25 Per Resident Equivalent
$4,610,000 $52 Per Resident Equivalent
$3,110,000 $42 Per Resident
$6,990,000 $95 Per Resident
$440,000 $6 Per Resident
$1,500,000 $17 Per Resident Equivalent
$1,650,000 $19 Per Resident Equivalent
$530,000 $6 Per Resident Equivalent
$55,370,000
(1) Represents mid-point of peak and off-peak employment. Assumes 658 full-time and
592 seasonal/part-time positions.
(2) Confidential worksheet submitted to City under separate cover.
(3) lndudes Franchise and Transfer Tax.
Prepared by: Keyser Marston Associates, Inc.
Filename c:\carlsbad\legoland\rev_fiscalimpact;10/14/99;1ag
IFDArea
Projected Residents
or Resident Equivalents
493
493
0
0
0
493
493
493
·IFDArea
nla
954
700
525
493
493
Total Impact
$296,000
$563,000
$2,943,000
$12,000
$26,000
$0
$0
$0
$8,000
$9,000
$3,000
$3,860,000
APPENDIX
DESCRIPTIONS OF ELIGIBLE CAPITAL PROJECTS
Infrastructure Financing Plan for Parcels 17 and 18 of the
Carlsbad Ranch Specific Plan -Revised Draft 10/14199
Keyser Marston Associates, Inc.
CAPITAL PROJECT DESCRIPTION
ADMINISTRATIVE FACILITIES -FARADAY BUILDING
PROJECT NAME
3647
PROJECT NO.
.... --------------------, .. --------------------..... PROJECT LOCATION MAP:
NIA
Cdevadmn ---------
PROJECT LOCATION:
To be determined. Expected to be in the general vicinity or the Industrial
Corridor.
PROJECT DESCRIPTION:
Lease purchase payments on an approximate 50,000 square lool building to
be used for administrative offices for the Community Development,
Administrative Services, and a portion or the Public Works Departments.
Funding in the first year is for consultant services to prepare a space plan,
design layout, and fumilure lnvenlory and management plan. With the lease of
the new office space, the Las Palmas facilily will be leased out lo offset the
new lease payments. These are reflected in the total costs shown below.
"' •· c::1er ;:..::;·;ing~ ·.viii also te realizt.1.:i as City 1:"lmp;vycbs in current leased space
are consolidated into the centralized locations. Project costs include new
furniture and tenant Improvement costs.
PROJECT NEED:
Over the past few years, the need for more ottlce space by the Cily Hall and
Community Development departments has been increasing. It has now
reached the critical stage In that the lack of space and the decentralization of
the City work force is negatively. impacting operations. Many departments
have bee dividing and sub-dividing space in order to accommodate their
needs. City staff no longer have sufficient individual space in which to work nor
is there sufficient conference rooms for the needs. There are no areas left al
either City Hall or at the Las Palmas facility which can be remodeled or sub•
divided to meel the needs. In addillon, the decentralization of the City
workforce has had a negative Impact on productivity and communicalion. In
order to provide better service and increase efficiency, the administrative
service groups should be located in close proximity to the employees which
they serve.
FINANCING:
Purpose
Planning/Study
Lease Payments
Ft.irniture
Estimated Cost
Tenant Improvement Costs
$100,000
$9,300,000
$1,525,000
$3,159,900
Total Cost= $14,084,900
Funding Source
PFF
PFF
GCC
PFF
---------Page 14 --
~
CJ
I
N
I
(0
<.Cl
(X)
t-o,
)> ;;::
n
rl
'<
0 -h
n "' .... -
(I, a "' a.
....,
OJ 0
t-(,>
t-
CAPITAL PROJECT DESCRIPTION
I MISCELLANEOUS PROJECTS -COMMUNITY FACILITIES DISTRICT #1 ADMINISTRATION
PROJECT NAME
NONE
PROJECT NO.
PROJECT LOCATION MAP: PROJECT LOCATION:
N/A l
Cfd#1adm
N/A
PROJECT DESCRIPTION:
City costs to administer Communities Facilities District No. 1 (CFO #1 ).
PROJECT NEED:
Administration of Communities Facilities District No. 1 is needed to assure that
the CFO #1 taxes are properly levied and collected in conformance with Staie
law and to be certain that funding for the CFO #1 projects is available at the
time of need for the various projects.
FINANCING:
Purpose
Administration
Total Cost=
Estimated Cost Funding Source
$2,420,000
$2,420,000
• CFO #1
. Page 30 - ------- - ----·-...., -...., .... --
............ .-...... .-..... ~--------------CAPITAL PROJECT DESCRIPTION
CIRCULATION SYSTEM STREET PROJECTS -CARLSBAD BOULEVARD AND CANNON ROAD WIDENING
PROJECT NAME
NONE
PROJECT NO.
PROJECT LOCATION MAP: PROJECT LOCATION:
l_
ll
I• ; .
.. -~ANNON. ROAD ________________ ! I . ·-
i I ., I ,· . --·---r---··-·--.., ,,,..---·· •• -----·· I I r
I
l .... J ILi ?. : ? er. n-· ,._::, L"I
I ., f'::"'li1 ~. '------'-.,, i a:., ~ i CIRl/0 ORIV[
-.. -·----... ~ Vl ( ~ -· 5
Vl __, ...... C> __, CD CD a::: 0 < a::: __,
V1 ......
C> -'
'-·--' J
MANZANO ORM
:
·i
Cbadwide
I *;.f
. ..... ;
··@·' ':.· ••
Carlsbad Boulevard from Manzano Drive to Cannon Road. Cannon Road from
Carlsbad Boulevard to AT&SF railroad tracks.
PROJECT DESCRIPTION:
Widen Carlsbad Boulevard from two lanes to four lanes with a center raised
median (major artei:ial). Construct pavement, curb and gutter, stamped
concrete and landscaping. Widen Cannon Road from two lanes lo four lanes
with a center raised median. Construct pavement, curb and gutter, stamped
concrete and landscaping.
A planning study was initiated in 1992 to determine alignment alternatives and
investigate property access problems.
PROJECT NEED:
Required. to meet Growth Management Standards ·and the Circulation Element
of the General Plan.
FINANCING:
Purpose Estimated Cost Funding Source
Design/Construction $2,000,000 TIF
Total Cost= $2,000,000
'
Page298