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HomeMy WebLinkAbout1990-07-10; City Council; 10719; GROWTH MANAGEMENT FINANCING PROGRAM CITYWIDE MELLO-ROOS DISTRICT1 . ' 0 a d co N u a n P m% ik 3% 4-1 0 z Q) Q -d u 4 a a Ek c U 3 1 5 0 G a iq g g -2 h ar Q4 u u 2 ?4 P) C .rl u -2 "$ V rJ1 .. z Y i 0 2 3 0 0 P) A Fl E 0 Dl 1 0 4 \ h ( *- \ 7 CIBOF CARLSBAD - AGENq(llBIi-L AB#u/;)jq TITLE: DEI GROWTH MANAGEMENT FINANCING PROGRAM CIT CIT 7/ 1 O/ 9 0 MTG. DEPT. RECOMMENDED ACTION: FIN CITYWIDE MELLO-ROOS DISTRICT Adopt Resolution No. $0 -23 b making appointments in Commun Facilities District No 1. Adopt Resolution No. YC-r;235? adopting the boundary maps Community Facilities District No. 1. Adopt Resolution No. Cr (9-338 declaring the City I s intent to establish a Community Facilities District and to lev special tax to pay for certain public facilities. Adopt Resolution No. q@$3q ordering and directing preparation of a report for a Community Facilities Distri Adopt Resolution No. 90-dq@ declaring intention to is Adopt Resolution No. qO-d;!Li/ modifying various consult agreements. ITEM EXPLANATION: On November 14, 1989 the Council directed staff to pursue formation of a Community Facilities District to financ required by the City's Growth Management Program. Since t date staff has worked with the affected property owners, City's consultants, and interested community groups to cre a district which will finance the necessary facilities wh complying with Council Policy 38. The proposed Community Facilities District (CFD) is based a few fundamental principles which were then expanded into boundary maps, taxing formulas, administrative policies formation process the Council is now reviewing. The attached staff report describes the CFD in det including information on the following topics: bonds secured by special taxes. variety of projects that were necessary to provide facilit o Projects to be funded o Taxing formulas and a description of how the tas imposed on: Residential Property Commercial and Industrial Property Agricultural Property o CFD boundary maps I m a ( ir. * Page Two of Agenda Bill No. )0!*2/% o Summary of the results of the property owner meetii o Description of the Process for District formation The actions before the Council include the adoption of Resolution of Intention to form the CFD. If adopted, Council will hold a public hearing on the formation of t' district within 60 days at which time protests, if any, w be received. If a protest of less than a 50% of the prope owners (based on acreage) is received, the Council may t action to place the question of district formation before property owners for a vote. This vote must occur within to 180 days of the public hearing. Formation requires a voter approval of the affected property owners, based on a acre - one vote concept. Following the vote the Council w certify the results and may choose to validate the distri The first tax assessments would be included on the Decem 1991 tax billing. The Council has adopted Council Policy 38 which controls use of Mello-Roos Community Facility Districts in Carlsb Under this policy projects that meet three conditions may funded through the use of a CFD, These conditions are: 1. Projects that are currently funded by the exist development fee programs. Projects that are too large for a single developer fund independently. 3. Capital projects that impact, or are required by, m than one local facilities management (zone) plan, 2. The projects included in the CFD include: Civic Buildinqs and Facilities: Library - South Carlsbad $ 11.2 million Library - Remodel North Carlsbad 4.0 Utilities Main/Warehouse facility 3.7 Macario Canyon Park 14.0 City Hall Facility 23.1 Streets and Road Sesments: Faraday Ave 3.5 Cannon Road 3.95 La Costa Ave 6.0 Olivenhain/Rancho Santa Road 6.0 Leucadia Blvd 3.5 e 0 < f Page Three of Agenda Bill No. joiQ/? Bridqes/Interchanqes: La Costa Interchange 9.5 Poinsettia Interchange 9.85 Palomar Airport Rd Interchange 11.035 Total All Projects $109.335 million (Note - Funding for streets projects represents construction costs will exceed the funding provided the CFD.) City's contribution to these projects. Act The first phase of the CFD will include the undevelo property within the 12 zones shown below. The distr boundary encompasses 5,601 net developable acres. These zo were selected because each has a completed (or soon to completed) local facilities management plan. Following may not add parcels to the CFD. Staff has proposed the wid boundary for the CFD to be sure to include all possi parcels. Adjustments to the parcel list may be done at public hearing. A minor reduction in the size of the init CFD boundary will not significantly limit its ultim effectiveness. Any properties not participating in original CFD should be conditioned by the Council to annex the district with the first discretionary action or u Council approval of a zone plan. Eventually the CFD w include all developable property. adoption of the boundary map the Council may drop parcels Net Zone Total Acres Percent 5 760 13.6 7 309 5.5 8 156 2.8 9 114 2.0 11 1,159 20.7 12 325 5.7 14 398 7.1 15 927 16.6 19 525 9.4 20 594 10.6 22 135 2.4 24 199 3.6 TOTAL 5,601 100 .O% (Acreage includes residential, non-residential agricultural property. growth management land use standards.) Net acre calculations are based on < e 0 f Page Four of Agenda Bill No. /9 (31q Other zones may be annexed to the district as they begin develop, or as local facility management plans are completc The ultimate district boundary will include 8,020 : developable acres. The attached staff report provides additional informat about the district, and the formation process. The staff recommendation is to adopt the attached resoluti and call a public hearing on August 14 or August 21, 19 Staff will proceed with a notice to property owners which w include a description of the Councills actions and structure of the CFD tax schedules and the date of the pub hearing, FISCAL IMPACT: The proposed CFD has wide ranging fiscal impacts on the C and the land owners included within the district boundarie The City's Capital Improvement Program proposes to fund of the projects included within the CFD from developer fe Under the pay-as-you-go concept used in the CIP proje cannot be funded until sufficient developer fees available. Generally, fees do not become available until developer builds a building or home. The City must wait development to occur before infrastructure improvements be funded. Under the growth management program, certain facilities m be provided within a specific number of years of a thresh being reached, or concurrent with development. A pay-as-y go system does not allow concurrent construction infrastructure, and in many cases will not provide funds a timely basis to meet the necessary schedule for facilit that must follow development. The CFD developed under the City's policies allows Council fund a range of facilities concurrent with development and leverage the fee revenue stream to create a debt financ program that guarantees the availability of facilities. The CFD together with the CIP and Council Policy 33, wlr controls the use of assessment districts, form the basis the CityIs long range facility financing plan. The City successfully provided funding for more than $400 millior infrastructure improvements to be constructed thorc buildout. c i e m Page Five of Agenda Bill No. /*/’?/? City of Carlsbad Long Range Facilities Financing Program An Overview of Carlsbad’s Long Range Capital The CIP provides funding for $400 million of capital projects from 1990 through buildout. The program is not guarantee funding of projects due to its reliance on an unstable revenue stream. The proposed City Wide Mello-Roos Community Facilities District provides a guaranteed source of funding for about $109 million of capital projects funded through developer fees in the CIP. With the CFD in place the City is less dependent on development for the construction of various projects. Council has entered into reimbursements agreements where developer fee funding will not be available when needed. These agreements have been instrumental in providing fundi1 for park land acquisition and in park development. The City has used a variety of non-city funding sources including TransNet funds, CalTrans and federal grants funding has been used to leverage the existing tax increment revenue into an $1 1 million building program in downtown (2 Improvement Program largely dependent upon developer fees. The CIP does City Wide Mello-Roos District Reimbursement Agreements Alternate Public Funding Sources to finance street construction programs In addition, Redevel Council Policy 33 Policy 33 allows the use of tax exempt debt to finance the construction of prime and major arterials as well as various related improvements. 1913/15 Act Assessment Districts will fund more than $100 million in street related projects through buildout. Policy 38 allows the use of Mello-Roos districts (in addition tc the City Wide CFD described above) for the construction of public improvements with general public benefit. No estimate is available for the total amount of projects that will be funded under this policy. The policy protects the City and the taxpayer while allowing the use of public tax exempt debt to finance a vairety of Council Policy 38 projects. < r 0 0 Page Six of Agenda Bill No. /?/7/9 The Council's actions forming the CFD will provide guaranteed source of funding for over $109 million of proje which would otherwise depend on development fees for suppo Existing fee schedules for Public Facilities Fees, Traf Impact Fees and Bridge and Thoroughfare District will reduced if the CFD is confirmed. No General Fund support is required for this program. The operates as a separate entity, providing its own operat revenue and capital funding. EXHIBITS : 1. Adopt Resolution No. 90 -4.3 b making appointments 2. Adopt Resolution No.90-237 adopting the boundary m 3. Adopt Resolution No. 90-a3b declaring the Cit intention to establish a Community Facilities Dish and to levy a special tax to pay for certain pub facilities. Community Facilities District No 1. for Community Facilities District No. 1. 4. Adopt Resolution No.90-&39 ordering and directing preparation of a report for a Community Facilit District. 5. Adopt Resolution No.$O -dm declaring intention to is 6. Resolution NO. 9O'~wi modifying various consult 7. Staff report. 8. Boundary Maps. 9. Project costs and descriptions. bonds secured by special taxes. agreements. z - '* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 f 0 e RESOLUTION NO. 90 - 336 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, MAKING APPOINTMENTS IN A COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CA , (hereinafter referred to as the "legislative sires to initiate proceedings to c Community ilities District pursuant to the terms and Roos Community Facilities Act of being Chapter 2 Part 1, Division 2, Title 5 of the Gov Code of the St of California. This Community Fac District shall reinafter be referred to as COI: \\ FACILITIES DISTRICT $NO. 1 (hereinafter referred to "District") : and, \ WHEREAS, at this t the legislative body is desi making the required rder to allow the p ings to go forward accordance with the sions of law. NOW, THEREFORE, LVED AS FOLLOWS: SECTION 1. ecitals are all t. correct. It SECTION 2. That throughout thebourse of these F ings, the City Council of the City will ye acting as the 1 tive body of the Community Facilities Di trict No. 1, a constituted governmental entity as def ined?Jsy Section 5 the Government Code of the State of Californi / 7 / /\ f SECTION 3. All regulatory rules of the City, in date, time and place of meetings, as well as not%ce requi 'a \ \ i/ c .I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 f 0 e shall be applicable €or all proceedings conducted by this lative body as the governing body of the Community Fac. District. SECTION 4. That the CARLSBAD JOURNAL is hereby des newspaper for all publications as required by law necessar €or completion of this District. . That there is hereby authorized and esta a special rev lving fund designated by the name of the Di Available monies, including property owner advances, transferred to sa$ fund to pay for current expenses, as the acquisition ariyl construction of facilities, in< engineering services, \k and said fund shall be reimburs tax revenues and/or other\. monies available from said Dist from other contribution fun'qs. as\ \ 1 h sEcT1oY \ '\ \\ x\ i >k $\ PASSED, APPROVED AND ABOPTED by the City Council i"., City of Carlsbad at its regula$ meeting held on the Of , 1990, b'bb the following vote, to hi a AYES: NOES: ABSENT: "., \ 5, 11 \\ \,\ 't \ CLAUDE A. LEkqS, Mayor \ 'a ATTEST: ii, ALETHA L. RAUTENKRANZ, City Clerk \/\ i (SEAL) \ \ \ I 1 2 L 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 l 0 e RESOLUTION NO. 90-237 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING BOUNDARY MAP SHOWING PROPERTIES AND LAND TO BE SERVED BY NITY FACILITIES DISTRICT CERTAIN PUBLIC CAPITAL FACILITIES IN A COMMU- "\ WHE EAS, the CITY COUNCIL of the CITY OF CAR 'l*hereinafter referred to as the "legislative I \ y CALIFORNIA, 't the local Ager$cy"), desires to initiate proceedings to c1 Community Facilities District pursuant to the terms and sions of the "Mello-Roos Community Facilities Act of being Chapter 2.5, 'Part 1, Division 2, Title 5 of the Govc Code of the State "of California. This Community Fac District shall hereinaf,ter be referred to as COMMUNITY TIES DISTRICT NO. 1 (hereinafter referred to as the "Dist and, i a, i \\ ', >> 1 \ l, 1 '9 WHEREAS, there has been, submitted a map showing the 1 ties and parcels of land propo'sed to be subject to a spec levied within the above-reference\d District. \ 3 NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. That the aboveg recitals are all tr \ x. correct. SECTION 2. That the map designated as "BOUNDAR COMMUNITY FACILITIES DISTRICT NO. 1" showdng the propertj parcels of land to be subject to a special 'tax levied wit1 above-referenced District is hereby approved and adopted. \ b SECTION 3. A certificate shall be endor'sed on the nal and on at least one (1) copy of the map of the Di< evidencing the date and adoption of this Resolution, and I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 l8 l9 20 21 22 23 24 25 26 27 28 f 0 e fifteen (15) days after the adoption of the Resolution the time and place of the hearing on the formation or ext said ~istrict, a copy of said map shall be filed w: correct and proper endorsements thereon with the Recorder, all in the manner and form provided for in SI 3110 and 3111 of the Streets and Highways Code of the Si California. PASSED, APPROVED AND ADOPTED by the City Council City of Carlsbad at its regular meeting held on the of , 1990, by the following vote, to AYES: NOES: ABSENT: CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) , I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I 0 @ RESOLUTION NO. 90-238 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIAf DECLARING ITS INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO LEVY A SPECIAL TAX TO PAY FOR CERTAIN PUBLIC FACILITIES WITHIN SAID COMMUNITY FACI- \ LITIES DISTRICT WHqREAS, the CITY COUNCIL of the CITY OF CAI CALIFORNIA, (hereinafter referred to as the "legislative i \. the local Age\ncy"), at this time is desirous to initiate p ings to create 9 \a Community Facilities District pursuant '\ terms and provisi'qns of the "Mello-Roos Community Facilit of 1982", being ChabGer 2.5, Part 1, Division 2, Title 5 Government Code of th'e State of California (the "Act") Community Facilities Di&trict shall hereinafter be refe as COMMUNITY FACILITIES DI$\TRICT NO. 1 (hereinafter refe i l\ \ \ \\, t'\ i a as the "District"); and, 9 \ \\ WHEREAS, this legislative \body is now required to \ to adopt its Resolution of Intent+on x to initiate proceedi ti, the establishment of said District), to set forth the bou for said District, indicate the typh~oi public facilitie \ \ provided, indicate the rate and apportYonment of a spec sufficient to pay for all such facilities-! set a time an for a public hearing relating to the eFtablishment 1 District, and describe the proposed voting &,procedure election pertaining to the levy of a special'?$ax or i bonds within the District; and, 1 \\ \ i b, \ \ WHEREAS, at any time before or after the formation District, this legislative body may accept advances o ( f n 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 and/or work in kind from any source; however, no reimbu and/or repayment shall be made for said advances until ex set forth by agreement and/or Resolution of this legi forth the amount, terms and conditions f body reimburse ent and/or repayment; and, LYing 1 "'., WHEREAS a map of said District has been submitted, \ #alii map i;i heggky app:?~?! and a copy of said map shall a on file with thea,transcript of these proceedings. i NOW, THEREFOdE, BE IT RESOLVED AS FOLLOWS: i RECITALS SECTION 1. That the above recitals are all ti \ t i correct. INITIA'TION OF PROCEEDINGS \ \x SECTION 2. That these, proceedings are initiated lr legislative body pursuant to '$he authorization of Sectio i of the Government Code of the Stbate of California. \ \ BOUNDARIES OF\,DISTRICT )\ SECTION 3. It is the intention of this legislative \ \ establish a Community Facilities Distrjct pursuant to the sions of the Act, the boundaries and pa'rcels being that land in which public facilities are to be, provided and c special taxes may be levied in order to pay the c expenses for said public facilities. A description of tk daries of territory proposed to be included in the Dist as follows: \ \ z i > \ All that property to be served by the ir tion of the capital facilities, as said property is sho \ r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I 0 e map as previously approved by this legislative body, si designated by the name of this Community Facilities Dist copy of which is on file in the Office of the City Clc ain open for public inspection. NAME OF DISTRICT sha11 r\ SECTION 4 The name of the proposed Community Fac District to be\,established shall be known and design( "< COMMUNITY FACILITIE'~ DISTRICT NO. 1. h: D~SCRIPTION OF FACILITIES 1L SECTION 5. That 'kt is the intention of this legi body to finance the cons:ruction, expansion, rehabilita purchase of authorized pqblic capital facilities ge described as follows: 1, '\, 1 b I. Public facilities generally descr ! a new library facility, a major 'addition to an existing building, a City Hall complex, and\ the addition of off warehouse facilities at the public sa r Bty center. \ '? 11. Park improvements generally desigr \ the MACARIO CANYON PARK. 1% '> 111. Major street improvements in port the following designated public streets: FARADAY AVENUE, ROAD, LA COSTA AVENUE, OLIVENHAIN ROAD/RANCHO 'SANTA FE F \' \< \ \ LEUCADIA BOULEVARD. IV. Major bridge and overpass fac generally described as the LA COSTA INTERCHANGE, POINSET'I INTERCHANGE and PALOMAR AIRPORT ROAD INTERCHANGE. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 I) a For a full and more complete descript said facilities, reference is made to the file er "DESCRIPTION OF FACILITIES" , which is hereby referenc incorporated herein, a copy of which is on file in the Of the City Cleyk and open for public inspection. \ \\ The above facilities all have an es useful life of \5 years or longer, and are specifically rized to be finan ed under these proceedings. ": s, b \ \ I&., is hereby further determined tk. \ proposed facilities. are necessary to meet increased placed upon this AgenGy as a result of development oc within the District. a \ \ i qPECIAL TAX "a SECTION 6. That is is Gereby further proposed that, where funds are otherwise available, a special tax suffic pay for said facilities and relqted incidental expenses rized by the Act will be levied annually within the boL of said District. For particulars as,\ to the rate and me apportionment of the proposed special Lax, reference is the attached and incorporated Exhibit "&ll' , which sets f sufficient detail the method of apportionmen$ to allow ea( owner or resident within the proposed District to clear1 mate the probable annual amount and the maximpm annual that said person will have to pay for said facilit'ies. "", z \ \ \ \ ? % i !\ \ The special taxes herein authori'zed s collected in the same manner as ad valorem property ta shall be subject to the same penalties, procedure, sale i priority in any case of delinquency as applicable for ad taxes. t 1 2 3 4 , 0 e This legislative body hereby further aut1 and allows the early discharge and prepayment of any I tax, and specific terms and conditions relating to any 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 hall be set forth by Resolution prior to the i and delivkgy of any bonds. PUBLIC HEARING a \ 1 \ SECTION ?\. NOTICE IS GIVEN THAT ON THE 14TH DAY OF IN THE REGULAR $ '< 1990, PLACE OF THE LEG5SLATIVE BODY, BEING THE COUNCIL CHAMBER AT THE >qUR OF 6:OO O'CLOCK P.M., / \ HALL, A PUBLIC HEAR,ING WILL BE HELD WHERE THIS LEGISLATI WILL CONSIDER THE ESTBBLISHMENT OF THE PROPOSED COMMUNITY i \'\ TIES DISTRICT , THE PYOPOSED METHOD AND APPORTIONMENT SPECIAL TAX, AND ALL 0THE.R MATTERS AS SET FORTH IN THIS TION OF INTENTION. THAT &*T THE ABOVE-MENTIONED TIME AN "\,, "i FOR PUBLIC HEARING, ANY PERS~NS INTERESTED, INCLUDING TAJ PROPERTY OWNERS AND REGISTERED {VOTERS, MAY APPEAR AND BE AND THAT THE TESTIMONY OF ALL IN'TERESTED PERSONS FOR OR jk, ! i i jt THE ESTABLISHMENT OF THE DISTRICT,\THE EXTENT OF THE DI \* OR THE FURNISHING OF THE FACILITIES), WILL BE HEARD AND 1- DERED. ANY PROTESTS MAY BE MADE ORALLY OR IN WRITING. 1 \, 'z ANY PROTESTS PERTAINING TO THE REGULARIT \ ~ OR SUFFICIENCY PROCEEDINGS SHALL BE IN WRITING AND CLEARLY'i,SET FORTH THE \ , LARITIES AND DEFECTS TO WHICH THE OBJEC'TION IS MAD1 WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THI LATIVE BODY ON OR BEFORE THE TIME FIXED FOR THE PUBLIC 1 WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIMI THE CONCLUSION OF THE PUBLIC HEARING. I 1 2 3 4 5 6 I e e IF A WRITTEN MAJORITY PROTEST AGAIN ESTABLISHMENT OF THE DISTRICT IS FILED THE PROCEEDINGS SI IF SAID MAJORITY PROTEST IS LIMITED TO ( ABANDoNE\ FACILITIES O&? PORTIONS OF THE SPECIAL TAX, THOSE FACILIZ THAT TAX SHALL BE ELIMINATED BY THE LEGISLATIVE BODY. \ '/ 7 8 9 10 11 12 13 14 15 16 17 18 19 2o 21 22 23 24 25 26 27 28 , BEE?YICUM ai. a SECTION 8. \$f, following the public hearing descrj \ l the Section immediately below, the legislative body det I to establish the District \ and proposes to levy a spec x\ a within the District, t\e legislative body shall then sub levy of the special tapes to the qualified electors District. If at least twe'4,ve (12) persons, who need not sarily be the same twelve (1%) persons, have been regist vote within the District for eac,h of the ninety (90) days ing the close of the subject hearing, the vote shall be b] tered voters of the District, wit+ each voter having vote. District who were the owners of rec'@\rd at the close subject hearing, with each landowner hhing one (1) v each acre or portion of an acre of la%nd owned wit District. 0 i si \i \ \ i \ \, a Otherwise, the vote shall be, \ by the landowners \ i \\ \,, A successful election relatihg to the \ tax authorization shall, as applicable, establish and/oi the appropriations limit as authorized by Article XIIIQ California Constitution as it is applicable to this Distr , 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NO PRIVATE CONTRACT SECTION 9. This legislative body hereby finds and deter- mines that the public interest will not be served by a .1 lowing of 3/4’s of the area to make an election to and perform any works of improvement pursuant to a contract aw'rded by \ this legislative body. This finding does not prohibit ‘the property owners from directly entering into a contract to p'yrform and construct certain of the works of improvement to th\en be acquired by the City. \? / NOTICE SECTION 10. \“I.hat notice of \ the time and place of the a public hearing shall b'e given by the City C lerk in the follow 1, manner: I,, \ ‘\ A. A "/iNotice of Publi .C Hearing shall \ i published in the legally designated newspaper of general circu :\ tion, being the CARLSBAD JO$NAL, said publication pursuant '1, Section 6061 of the Government'Code, 1. with said publication to ng be a- to be completed at least seven (7) days prior to the date set for the j\. public hearing. \ 1 \ B. A Notice of/Public Hearing shal '\ mailed, postage prepaid, to "1 each pitoperty owner within boundaries of the proposed District\ji( said mailing to \; property owners shall be to the address 1~s shown on the last equalized assessment roll. Said mailing s&l1 be completed at least fifteen (15) days prior to the date se;? for the public hearing. ! 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I.6 l7 18 19 20 21 22 23 24 25 26 27 28 , e 0 ENVIRONMENTAL REVIEW SECTION 11. All environmental evaluation proce relating to the establishment of this District sh completed prior to the date and time set for the public he \ 1 APPROVED AND ADOPTED by the City Council d at its regular meeting held on the of \ , 1990, by the following vote, to \, \ \, AYES: NOES: ABSENT I ATTEST: ALETHA L. RAUTENKRANZ, City Clerk ?. \\ (SEAL) \* *\ 9 "\, b- I, I "i '\ 4 w e CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 EXHIBIT "A" PROPERTY CATEGORIES AND MAXIMUM TAX All taxable property within the boundaries of the Community Facilities D shall be subject ta ANNUAL SPECIAL TAXES as applicable, based upon the p. categories, maximum tax rates, increases and status of the issuance of bi permits, all as hereinafter set forth. Improvement Area I refers to all pro] within the boundaries of the City of Carlsbad Bridge and Thoroughfare Di' Improvement Area I1 is for all remaining properties within the Community Fac District, not within the Bridge & Thoroughfare District. RESIDENTIAL PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable property prior to the issuance of a building permit shall be sub: the following maximum annual special taxes, also subject to adjustments as set herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/91 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA I1 Residential Low $ 230.00 $ 227.00 Residential Low to Medium 632,OO 622,OO Residential Medium 1,059 00 996.00 Residential Medium to High 1,623.00 1,528.00 Residential High 2,285.00 2,241.00 SPECIAL DEVELOPMENT TAX - ONE TIME Upon the issuance of a building permit, all Residential properties shall be s to the following described SPECIAL DEVELOPMENT TAX - ONE TIME, also subjl adjustments as set forth herein, generally as follows: MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME PER RESIDENTIAL DWELLING UNIT FOR FISCAL YEAR 1990/91 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA I1 Residential Low $ 4,240.00 $ 3,652.00 Residential Low to Medium 4,240.00 3,652.00 Residential Medium 2 , 677.00 2 , 202.00 Residential Medium to High 2,677.00 2 , 202.00 Residential High 2,677.00 2,202 .oo , 0 0 COMMERCIAL AND INDUSTRIAL PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable Commercial and Industrial Property prior to the issuance of a b permit shall be subject to the following maximum annual special taxes, also to adjustments as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/91 IMPROVEMENT IMPROVEMENT AREA I AREA I1 Commercial Property $ 3,000.00 $ 2,000.00 Industrial Property 1,500.00 1,200.00 Agricultural Property -0- -0- All Commercial and Industrial Property, upon the issuance of a building E shall have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME assume the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY for a period of not to twenty-five (25) years, generally in the amounts per property category as follc MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME FOR FISCAL YEAR 1990/91 PER SQUARE FOOT OF BUILDING AREA PROPERTY CATEGORY IMPROVEMENT IMPROVEMENT COMMERCIAL USE DESIGNATIONS AREA I AREA I1 Restaurant - Fast Food $ 21.87 $ 5.82 Outdoor Tennis Courts 21.62 5.58 Convenience Market 20.98 5.18 Bank with Drive-thru 13.88 4.40 Campground 13.46 3.83 Restaurant - Sit Down 11.66 3.64 Marina 11.41 3.39 Bank - Walk In 9.86 3.54 Auto - Gasoline 6.23 2.22 Grocery Store 5.98 1.97 S 61 L with Drive-thru 5.83 2.67 Bowling Center 5.09 2.18 Restaurant - Quality 5.05 2.38 Neighborhood Shopping Center 4.96 1.75 Auto Car Wash 4.85 1.93 S & L - Walk In 4.23 2.33 Race Track 3.92 1.79 Library 3.27 2.20 1 e * IMPROVEMENT IMPROVEMENT - COMMERCIAL USE DESIGNATIONS AREA I AREA I1 Community Shopping Center $ 3.26 $ 1.38 Hospital - General 2.98 2.44 Hotel - Conv. Fac/Comm. 2.66 1.93 Auto - Repair & Sale8 2.62 1.22 Regional shopping Center 2.57 1.24 D i s cou n t Store 2.48 1.22 Golf Course 2.35 1.65 Church 2.30 1.49 Office - Government 2.25 1.45 Health Club 2.22 1.43 Motel 2.07 1.58 Office - High Rise 2.06 1.41 Office - Commercial, Less 1.97 1.35 Commercial Shops 2.23 1.22 than 100,000 SF Lumber/Hardware Store 1.90 1.22 Office - Medical 1.86 1.59 Hospital - Convalescent 1.79 1.71 Indoor Sports Arena 1.79 1.71 Resort Hotel 1.77 1.52 U n i ve r s it y 1.73 1.47 Junior College 1. dB 1.46 All other Commercial Properties 1.65 1.11 not indentified above IMPROVEMENT IMPROVEMENT INDUSTRIAL USE DESIGNATIONS AREA I AREA I1 Heliports $ 8.17 $ 2.82 Industrial-Commercial Business Park 1.65 1.16 All other Industrial Properties not identified above 1.34 1.09 OR, IN THE ALTERNATE, MAXIMUM ANNUAL SPECIAL TAX - DEVELOPED PROPERTY FOR FISCAL YEAR 1990/91 PER SQUARE FOOT OF BUILDING AREA PROPERTY CATEGORY IMPROVEMENT IMPROVEMENT COMMERCIAL USE DESIGNATIONS AREA I AREA I1 Restaurant - Fast Food $ 3.93 $ 1.05 Convenience Market 3.77 0.93 Bank with Drive-thru 2.49 0.79 Campground 2.42 0.69 Outdoor Tennis Courts 3.88 1-00 e 0 IMPROVEMENT IMPROVEMENT - COMMERCIAL USE DESIGNATIONS AREA I AREA I1 Restaurant - Sit Down $ 2.09 $ 0.65 Marina 2.05 0.61 Bank - Walk In 1.77 0.63 Grocery Store 1.07 0.35 S & L with Drive-thru 1.05 0.48 Bowling Center 0.91 0.39 Restaurant - Quality 0.91 0.43 Neighborhood Shopping Center 0.89 0.31 Auto Car Wash 0.87 0.35 S & L - Walk In 0.76 0.42 Race Track 0.70 0.32 Library 0.59 0.39 Community Shopping Center 0.59 0.25 Hospital - General 0.54 0.44 Hotel - Conv. Fac/Comm. 0.48 0.35 Auto - Gasoline 1.12 0.40 Auto - Repair & Sales 0.47 0.22 Regional Shopping Center 0.46 0.22 Discount Store 0.44 0.22 Golf Course 0.42 0.30 C hu rc h 0.41 0.27 Office - Government 0.40 0.26 Health Club 0.40 0.26 Motel 0.37 0.28 Office - High Rise 0.37 0.25 Office - Commercial, Less than 0.35 0.24 Commercial Shops 0.40 0.22 100,000 SF Lumber/Hardware Store 0.34 0.22 Office - Medical 0.33 0.29 Hospital - Convalescent 0.32 0.31 Indoor Sports Arena 0.32 0.31 Resort Hotel 0.32 0.27 University 0.31 0.26 Junior College 0.30 0.26 All other Commercial Properties not indentified above 0.30 0.20 IMPROVEMENT IMPROVEMENT INDUSTRIAL USE DESIGNATIONS AREA I AREA I1 He1 iport s $ 1.47 0.51 Industrial-Commercial Business Park 0.30 0.21 All other Industrial Properties not identified above 0.24 0.20 e ., ANNUAL TAX INCREASE The above SPECIAL TAXES for the taxable properties are applicable for the year 1990/91, and are all subject to annual increases to reflect incret construction costs. The Construction Cost Index of the Engineering News- titled “ENR Cost Indexes in 22 Cities” will be used. The Index published month of April for the City of Los Angeles under the column heading of “Per Change from Last Year” will annually inflate each of the Maximum Annual Ta: properties as follows: A. PROPERTIES WITHIN THE DISTRICT: Not to exceed 50% of the above-referenced increase. B. PROPERTIES TO BE SUBSEQUENTLY ANNEXED: Not to exceed 100% of the above-referenced Increase until annexed. TERM OF TAX The above taxes shall be levied until all bonds have been discharged and fac funded and/or guaranteed, and the SPECIAL DEVELOPMENT TAX - ONE TIME has bee however, the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY shall not be levied period in excess of twenty-five (25) years. Residential: Once a building permit has been issued for Residential property and the DEVELOPMENT TAX - ONE TIME has been paid, the property no longer will be sub any annual special tax. Commercial & Industrial: The Commercial and Industrial properties, upon the issuance of a building have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) ass ANNUAL SPECIAL TAX - DEVELOPED PROPERTY, as set forth above. Upon the issu any building permit, no further escalation is authorized. COLLECTION OF ANNUAL TAX Residential: Determine monies necessary to make payment on bond debt service, replenish r pay bond and City administrative costs, and pay for public capital faci Reduce this amount by the funds collected from Special Development Tax - 01 levied against residential properties. The remianing funds needed are collected by the levy of the annual Special Tax - Undeveloped Propc undeveloped taxable residential acreage, in the percentage required, not to the maximum tax. Commercial and Industrial: Determine monies necessary to make payment on bond debt service, replenish r pay bond and City administrative costs, and pay for public capital faci I .. 0 0 Reduce this amount by the funds collected from Special Development Tax - On levied against commercial and industrial properties. The remaining funds nee( to be levied in the following priority: FIRST: Levy the Annual Special Tax - Developed Property, not to exceed the I tax. SECOND: Levy the annual Special Tax - Undeveloped Property on undeveloped commercial and industrial acreage, not to exceed the maximum tax. *** I 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 RESOLUTION NO. 90-239 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ORDERING AND DIRECTING THE PREPARATION OF A "REPORT" FOR A COMMUNITY FACILITIES DISTRICT WHEREAS, e CITY COUNCIL of the CITY OF CA CALIFORNIA, (h nafter referred to as the "legislative the local has declared its intention to i proceedings a Community Facilities District E to the terms and provikions of the "Mello-Roos Community ties Act of 1982", beih Chapter 2.5, Part 1, Division 2 the State of California. 5 of the Government a B \ Community Facilities Districb shall hereinafter be refe \ Cod\ Of as COMMUNITY FACILITIES DISTRI T NO. 1 (hereinafter refe as the "District"); and, directs, pursuant t o provisions of Section 53321.5 of 'the Government Code State of California, the preparation of more detailed information relating to th proposed Distri proposed public facilities and estimate of cost. byY \, '' Re po r t '' / WHEREAS, this legislative NOW, THEREFORE, BE IT RESOLVED AS FOLLO : -i-I\ t \ \ ".., / SECTION 1. That the above recitals'?are all t correct. SECTION 2. That the appointed SPECIAL TAX ' CONSUL \ hereby directed and ordered to prepare a "Report" to sented to this legislative body, said "Report" to further information and data regarding a description public facilities required to meet the needs of the Di i 1 2 3 4 5 6 ,, 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 W 0 further data and information regarding the estimate of th for said facilities, and further data relating to the r method of apportionment of the special tax required to f said public facilities. Said “Report” shall further conte that is related to the proposed public 1 ties, Distr‘ formation and tax authorization. i SECTION 3\. Said ”Report”, upon its preparation, sh submitted to thilg legislative body for review, and said “1 shall be made a pB,rt of the record of the public hearing Resolution of IntentQon to establish said District. \ \\ t/ \\ \ PASSED, APPROVE& AND ADOPTED by the City Council \ \ City of Carlsbad at its regular meeting held on the of \$ \& “.990, by the following vote, to T I \\ \* 1 B AYES: NOES: ti\ “t\ :.., i ABSENT: s \% \ \B CLA+ E A, LEWIS, Mayor a ”* “.. ATTEST: ‘9? \\ ALETHA L. RAUTENKRANZ, City Clerk a B (SEAL) i 1 \ 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 RESOLUTION NO. 90-240 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING INTENTION TO ISSUE BONDS SECURED BY SPECIAL TAXES TO PAY FOR CERTAIN FACILITIES IN A COMMUNITY FACLLI- TIES DISTRICT the CITY COUNCIL of the CITY OF CA 4, CALIFORNIAl (her'yinafter referred to as the "legislative % the local Agency,"), has declared its intention to or i establishment of d\ Community Facilities District €or public facilities purquant to the terms and provisions "Mello-Roos Community yacilities Act of 1982", being 2.5, Part 1, Division 2, Tjitle 5 of the Government Code 1 State of California, commencing with Section 53311. Community Facilities District\shall hereinafter be refe as COMMUNITY FACILITIES DISTRIC+/ NO. 1 (hereinafter refe as the "District"); and, \ k 'b \\ 1 ": 1 a 4 \ \ B 1 WHEREAS, it is the intention 'yf this legislative a finance all or a portion of said €acil,ities through the j of bonds, said bonds to be secured by special taxes, authorized pursuant to said "Mello-Roos Cpmmunity Facilit \\ a\ i\/ \ \ of 1982". '\i 1% NOW, THEREFORE, IT IS HEREBY RESOLVED AS ''9FOLLOWS: SECTION 1. That the above recitals aLre all t correct. SECTION 2. That this legislative body declares t public convenience and necessity requires that a bonded ir ness be incurred to finance all or a portion of certain facilities as proposed €or the designated District. I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I 0 e SECTION 3. That it is the intention of this legi body to finance the construction, expansion, rehabilitat purchase of authorized public capital facilities cye described as fol ows: Public facilities generally descr i I\' / '\* a new library facil$ty, a major addition to an existing building, a City Hall complex, and the addition of off warehouse facilities at?'i,the public safety center. Y" t" %ti x 11. Park improvements generally design i: the MACARIO CANYON PARK. 'ii 1 111. Majoh, street improvements in port the following designated publhc '\ streets: FARADAY AVENUE, x\ ROAD, LA COSTA AVENUE, ~LIvENHA~N ROAD/RANCHO SANTA FE R( LEUCADIA BOULEVARD. / '\ Major briqge a and overpass fac generally described as the LA COSTA \ INTERCHANGE, POINSETT IV. l INTERCHANGE and PALOMAR AIRPORT ROAD IN i ERCHANGE. \ \ SECTION 4. That the amount of the pi-oposed bonded in ness, including the cost of the iacilitids, together wi \ /\ incidental expenses, is generally as fol1ows:i 1; \ SAID PUBLIC FACILITIES, INC,LUDING \ INC 1 ALL EXPENSES, IS ESTIMATED NOT TO EXCEED $150,000,000. ARE REPRESENTED IN CURRENT DOLLARS AND ARE SUBJ,ECT TO INCREASES AND ESCALATION AS REFLECTED IN THE CONSTRUCTIC \ \ INDEX OF THE ENGINEERING-NEWS RECORD, LOS ANGELES, CA. SECTION 5. NOTICE IS GIVEN THAT ON THE 14TH DAY OF I 1990, AT THE HOUR OF 6:OO O'CLOCK P.M., IN THE REGULAR 1 0 0 1 2 3 PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBER BALL, A PUBLIC HEARING W’ILL BE HELD ON THE INTENTION ( LEQISLATIVE BODY TO INCUR A BONDED INDEBTEDNESS TO PUBLIC FACILITIES IN THE COMMUNITY FACILITIES DISTRICT 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 LEVY OF A SPECIAL TAX. AT THE TIME AND PLACE FIXED F PUBLIC HEARING, ANY PERSONS INTERESTED, INCLUDING PERSONS PROPERTY WITHIN THE AREA, MAY APPEAR AND PRESENT ANY RELATING TO THE PROPOSED INTENTION AND NECESSITY FOR IK THE BONDED INDEBTEDNESS WHICH WILL PAY FOR ALL OR A POR THE PROPOSED PUBLIC FACILITIES AND WHICH WILL BE SECURI SPECIAL TAX TO BE LEVIED WITHIN SAID COMMUNITY FAC DISTRICT. SECTION 6. That notice of the time and place of the hearing shall be given by the City Clerk in the fc manner: A. A Notice of Public Hearing sl- published in the legally designated newspaper of general c tion, being the CARLSBAD JOURNAL, said publication purs Section 6061 of the Government Code, with said publicatio completed at least seven (7) days prior to the date set public hearing. B. A Notice of Public Hearing shall be postage prepaid, to each property owner within the bounda the proposed District; said mailing to the property owner be to the address as shown on the last equalized assessmen Said mailing shall be completed at least fifteen (15) day to the date set for the public hearing. 1 2 3 4 5 6 7 8 9 lo I' 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 t e 0 PASSED, APPROVED AND ADOPTED by the City Council City of Carlsbad at its regular meeting held on the of , 1990, by the following votel to AYES! i ABSENT: ?? NOES: i* it \ .., CLAUDE A. LEWIS, Mayor "h '?, ATTEST: B \ ALETHA L. RAUTENKRANZh, City Clerk (SEAL) \ L, '4 *\ .a '\\, "., 2; \ \\/ \\ a \ 1 a 1 2 \\ ?, \/\ \ \ & 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e RESOLUTION NO. 90-241 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE APPROPRIATION OF FUNDS TO SUPPORT SERVICES PROVIDED BY KADIE- JENSEN, JOHNSON AND BODNAR, AND NBS/LOWRY UNDER I llTH SUPPLEMENT TO AN AGREEMENT BETWEEN THE CITY 1 CARfSBAD AND NBS/LOWRY THE CITY OF CARLSBAD AND NBS/L~WRY \ "; ", WHEREAS, the City-Council has directed staff to study feasibility of forming a Mello-Roos Community Facilit District to augment the -implementation of the City's gro management plan: and \ \ WHEREAS, the Council has previously directed the staff work with the NBS/Lowry to prep&re the preliminary tax form and district description for the City's CFD and to work w Kadie-Jensen, Johnson and Bodnar fori-the review of the fis aspects of the District; and '\ B +i \ WHEREAS, Council has previously approvedthe 11th supplem to the basic agreement with NBS/Lowry to include the w related to the City's CFD; and 1 WHEREAS, additional funding in the amount of $50,000 will necessary to support the conclusion of work and Distr formation documents by NBS/ Lowry and Kadie-Jensen, John and Bodnar. NOW, THEREFORE BE IT RESOLVED by the City Council of City of Carlsbad, California as follows: 1. That funds in the amount of $50,000 are appropriated f the general fund unappropriated fund balance to account 001-840-1310-2479. /// 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 2. That the staff is hereby authorized to continue to h with Kadie-Jensen, Johnson and Bodnar and NBS/Lowry under terms of the 11th supplement to the basic agreement on iss related to the creation of the City’s Mello-Roos Commur Facilit’es District. \x 3. That”!,the Finance Director shall apportion the additic funding herein approved, as necessary, to support servi related to theicreation of the City wide Community Facilit District. i \ i 1 4. That the funds hereby appropriated shall be recove from any subsequent‘bond issue or tax assessment levied f: community facility district formed as a result of this effo \ \ \ h \ PASSED, APPROVED AND ADOPTED at a regular meeting of City Council of the City of Carlsbad, California, held on day of \ , 1990, by the follow vote, to wit: \ \ AYES: NOES: ABSENT: \ \ CLAUDE A- LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 0 e B June 29, 1990 TO: CITY MANAGER FROM: Finance Director SUMMARY OF MELLO-ROOS DISTRICT PROPOSAL On July 10, 1990 the City Council will consider adopting a Resol of Intention to form a City Wide Community Facilities District which will finance the construction of more than $109 million of pi improvements. This report is intended to provide background 01 Projects to be funded through the CFD, the proposed taxing fon and how they effect various types of property, the CFD boundary the CFD formation process. BACKGROUND In 1986, the voters of Carlsbad approved the implementation 01 Growth Management Program. The principals of the program were 1 on the concept that development may only occur when the develope: show that eleven basic infrastructure standards will be mainta In other words, the developer would have to show that the citizen systems, or school systems to name a few, would be able to contin1 enjoy the same level of services they had received before development occurred. If the proposed development would cause service to fall below a stated standards, the developer would ha1 provide a means for constructing improvements that would maintair standards as stated within the Growth Management ordinance and to the service demands of the new development. At this time the City of Carlsbad has in place a series of develor related fees that are paid at the time of construction. These will ultimately pay for improvements such as the library, intersec and street improvements, fire stations, parks and other pi facilities. The City has generally used a pay-as-you-go system financing capital improvements. This means that when the City coll adequate funds from developer fees, projects included in the Ci capital improvement program are built. A pay-as-you-go system al you to build improvements after all fees have been paid and develor has already occurred. This condition is unacceptable under the Ci Growth Management Program which requires that certain facilities be built concurrent with development and therefore in advance of time that fees would be received. had previously enjoyed library services, circulation and st e 0 Summary of Mello-Roos District Proposal June 29, 1990 Page No. 2 It became evident that the City needed to develop a plan to alloa construction of certain capital projects in advance of when fees k otherwise be available. collecting funds from those within the City who will ultimately del and direct those funds towards certain high priority projects. was not the City's desire to fund projects that would be develop of benefit. Three standards for the use of tax exempt Mello-Roos E came from this work: 1. The City would fund projects that are currently within the Cj fee program. 2. The City would concentrate on projects that are too large 1 single developer to guarantee or fund in advance. 3. The City would concentrate on projects that impact more thar growth management zone. This plan had to provide a means for responsibilities in the years to come or would have a very narrow With these three basic concepts in mind, the City began to work comprehensive financing program for major capital improvements. this effort, the City has developed the following: 1, The Council Policy 38 which sets the standards for the us Mello-Roos districts in Carlsbad and the proposed Mello- Financing Program. 2. Council Policy 33 and the proposed use of 1913/1915 Asses: District bonds for streets. 3. A comprehensive review of the City's capital improvement prc and capital improvements required under growth management dol the zone level. This comprehensive financing program includes funding for more $400 million in City funded projects as well as more than $100 mi: of projects that will be conditions of development approvals. program is summarized on the following page. 0 0 Summary of Mello-Roos District Proposal June 29, 1990 Page No. 3 City of Carlsbad Long Range Facilities Financing Program An Overview of Carlsbad’s Improvement Program projects from 1990 through buildout. The program is largely dependent upon developer fees. The CIP does not guarantee funding of projects due to its reliance on an unstable revenue stream. The proposed City Wide Mello-Roos Community Facilities District provides a guaranteed source of funding for about $109 million of capital projects funded through developer fees In the CIP. With the CFD In place the City is less dependent on development for the construction of various projects. City Wide Mello-Roos District Reimbursement Agreements Council has entered into reimbursements agreements where developer fee funding will not be available when needed. These agreements have been instrumental in providing funding for park land acquisition and in park development. The City has used a variety of non-city funding sources including TransNet funds, CalTrans and federal grants to finance street construction programs. In addition, Redevelor funding has been used to leverage the existing tax Increment revenue into an $1 1 million building program in downtown Carts Alternate Public Funding Sources Council Policy 33 Policy 33 allows the use of tax exempt debt to finance the construction of prime and major arterials as well as various related improvements. 191 3/15 Act Assessment Districts will fund more than $100 million in street related projects through buildout. Policy 38 allows the use of Mello-Roos districts (in addition to the City Wide CFD described above) for the construction of public improvements with general public benefit. No estimate is available for the total amount of projects that will be funded under this policy. The policy protects the City and the taxpayer while allowing the use of public tax exempt debt to finance a vairety of projects. Council Policy 38 e 0 Summary of Mello-Roos District Proposal June 29, 1990 Page No. 4 MELLO-ROOS DISTRICT The first and perhaps most important output of this process is proposed City Wide Mello-Roos District. This District would fun( construction of $109 million in capital projects that would othei have been funded from City fee programs. The projects tl constructed include the following: Civic Buildinqs and Facilities: Library - South Carlsbad $ 11.2 million Library - Remodel North Carlsbad 4.0 Utilities Main/Warehouse facility 3.7 Macario Canyon Park 14.0 City Hall Facility 23.1 Streets and Road Sements: Faraday Ave 3.5 Cannon Road 3.95 La Costa Ave 6.0 Olivenhain/Rancho Santa Feb 6.0 Leucadia Blvd 3.5 Bridqes/Interchanses: La Costa Interchange 9.5 Poinsettia Interchange 9.85 Palomar Airport Rd Interchange 11.035 Total All Projects $109.335 million (Detail project descriptions are attached to this report - ) The District will ultimately include all undeveloped land within City. These would be the properties that have not paid develop fees which would be used to construct capital projects required by growth management program that are included in the capital improve program. Any property which currently has a house or other m improvement existing would be excluded from the District anc assessment, lien or tax would be placed on those properties. builders of existing homes and buildings paid all fees or obligat at the time of construction and therefore should not be assesse taxed further. The Mello-Roos District or Community Facilities District (CFD) w very much like an assessment district. The landowners or affe individuals are required to vote on or approve of the creation of District before the City can implement such a plan. The voters a the City of Carlsbad to create a special district with the righ aSSeSS a tax which will not exceed a fixed amount. This tax can 0 0 . Summary of Mello-Roos District Proposal June 29, 1990 Page No. 5 be used to pay for projects or debt service (annual debt payments bonds that have been issued to pay for a specific list of caF projects. The creation of a Mello-Roos District requires a two-th vote of the landowners in undeveloped areas, or of the regist voters if there are more than 12 registered voters in the area t included within the District. The City's proposal will only inc undeveloped land since all existing residences and other struct have already paid fees needed to finance the construction of caF improvements required by the Growth Management Program. The creation of a Mello-Roos District will affect different type landowners, and eventually the residents of Carlsbad, in many diffe ways. The plan proposed by the City should be reviewed in t distinct pieces: residential property, commercial and indust property, and agricultural property. Below is a review of eac these categories and how the Mello-Roos District will effect it. Under the Mello-Roos District structure, only the tax payers withir District boundaries are obligated to pay taxes levied by the Distr Neither the City of Carlsbad nor the residents of Carlsbad obligated in the event of default by the District. The Council ma] assess a tax outside the District boundary to pay for obligation the District. RESIDENTIAL PROPERTY 1. A vacant or undeveloped land tax will be placed residentially zoned property within the District boundar This tax would be based on the underlying General Plan use designation. The tax would be based on the number oi developable acres included in the parcel as determined 1: the growth management standards. The attached tax tables the maximum undeveloped land taxes for each type residential land use. The CFD cash flow projections as that the City will set a vacant land tax of 85% of the ma2 tax rate each year. 2. Upon development, a single one-time tax would be paid bj developer. This one-time tax would be a fixed amount per developed. Upon the payment of the one-time tax, no fur tax obligation exists on the parcel. This means that a buyer will not be required to continue paying Mello-Roos t to the City of Carlsbad. The most important concept applies to the residential development is that the home k taxes and therefore carry an additional tax burden for p~ improvements included within the District. in the City of Carlsbad will not be obligated to pay fur Residential Vacant Land Tax Improvement Area 1 Improvement Area 2 Expected (1) Expected (1) Vacant Land Tax Vacant Land Tax Land Use TaxIAcre Assessment TaxIAcre Assessment RL (1 .O DUIAC) 230 196 227 1 93 RLM (3.2 DUIAC) 632 537 622 529 RM (6.0 DUIAC) 1,059 900 996 847 RMH (1 1.5 DUIAC) 1,623 1,380 1,528 1,299 RH (19.0 DUIAC) 2,285 1,942 2,241 1,905 (1) Note - Expected undeveloped land fax will be set at 85% of maxlmum tax per acre One Time Tax Improvement Area 1 Improvement Area 2 One Time Tax One Time Tax Land Use Per Unit Per Unit RL (1 .O DUIAC) 4,240 3,652 RLM (3.2 DUIAC) 4,240 3,652 RM (6.0 DUIAC) 2,677 2,202 RMH (1 1.5 DUIAC) 2,677 2,202 RH (1 9.0 DUIAC) 2 , 677 2,202 Commercialllndustrial Vacant Land Tax Improvement Area 1 Improvement Area 2 kpected (1) Epected (1) Commercial 3,000 1,500 2,000 1,000 Vacant Land Tax Vacant Land Tax Land Use TaxfAcre Assessment TaxfAcre Assessment lndust rial 1,500 750 1,200 600 (1) Note - Expected undeveloped land tax will be set at about 50% of maximum lax per acre Developed Tax Rates Improvement Area 1 Improvement Area 2 Developed Expected (2) Developed bpected (2) Selected Tax Per Tax Tax Per Tax Land Uses ss Ft Assessment Q Ft Assessment Restaurant - Fast Food 3.93 3.54 1.05 0.95 Convenience Market 3.77 3.39 0.93 0.84 Auto - Gasoline 1.12 1.01 0.40 0.36 Community Shopping Center 0.59 0.53 0.25 0.23 Discount Store 0.44 0.40 0.22 0.20 Motel 0.37 0.33 0.28 0.25 Business Park 0.30 0.27 0.21 0.19 (2) Note - Expected developed tax will be 90% of maximum tax rate per sq ft e 0 Summary of Mello-Roos District Proposal June 29, 1990 Page No. 8 2. The zero tax rate would continue to apply to these parce long as a zone change or other development application i proposed by the owner. Upon receipt of an applicatioi development rights, the tax clock would begin to run. final approval of the zone change or other develo application, the full amount of the tax is due back tl date of application. If the application is denied by the Council, no taxes are due and the slate is wiped clean short, if land is currently zoned for agriculture or i LC zone and no action is taken by the owner to make a c Roos District program. in that underlying zoning, no tax will be due under the M APPEAL PROCESS The district will include an appeal process that will allow payer to appeal the amount of the tax assessed, classification issues or other questions to a board made 1 staff representatives. This board would have the authorii modify the tax burden levied upon certain parcels withir constraints of the general taxing formula. This appeal prl provides a forum for resolving issues out-side of the fl Council appeal process. PROCESS AND SCHEDULE The City has been working on the creation of this CFD for 18 months. Although a total recount of progress over that is not necessary, a review of events occurring over the past months may be useful. In addition, the proposed schedulc proceeding with the CFD formation should be reviewed with Cou On March 5, 1990 the City mailed notices to about 500 pro, owners notifying them of our intent to pursue the formation o City Wide CFD. Copies of a proposed Resolution of Intention rates, property ownership information, and net acre calculai were included in each packet. On March 16, 1990 the staff held two meetings, one at 9:00 a. one at 3:OO pm in the City Council Chambers, to discuss thc proposal. Staff provided an overview of the district anc rates as well as information on the formation process. Follc the March 16th meeting, the City staff held a series of mee. with any and all property owners who requested meetings (whc included in the district or not). The purpose of these mee property owners. Meetings were held between March 16 and M was to further explain the proposal and to get input fro1 Residential Non-Residential Total Revenue Undeveloped One-Time Developed Total Tax Revenue Tax Tax Revenue Revenue 31,576 56,440 88,016 30,384 87,141 11 7,525 61,960 56,440 87,141 205,541 Undeveloped One-Time Developed Total Tax Revenue Tax Tax Revenue Revenue 100.00% Non-Residential 25.85% 74.15% 100.00% Total Revenue 30.14% 27.46% 42.40% 100.00% Residential 35.88% 64.120/~ r a a Summary of Mello-Roos District Proposal June 29, 1990 Page No. 9 These meetings produced a list of comments and suggestions have been investigated, and in many cases included in the disl structure. Issues raised by property owners include: o Expected density of future development o Accuracy of project cost estimates o o Agricultural land conversion to taxable property o Non-residential tax formula considerations o Appeal process o Treatment of school property Ability to acquire projects constructed by developer o Overlay Mello-Roos districts for roads (i.e. Rancho Fe, Cannon, etc) o Developer agreements o Approval process for zone financing plans o Limitation on total tax burden on property owners These issues can be addressed in the staff report at the July 10, Council meeting if they are of interest. After completing the property owner meetings staff worked wit' City's consultants to produce the recommendation that will be b the Council on July 10, 1990. The proposal before the Council re the characteristics of the early CFD policy with modifications i development assumptions and a sensitivity to the agricultural issues. Not all issues have been resolved to the satisfaction of the prc owner raising the question. Two primary examples of this ar Commercial/Industrial (non-residential) property tax formula an funding of Rancho Santa Fe Road. The non-residential property tax formula has been specifi questioned by a group of Zone 5 property owners. They believe thz City is relying too heavily on the undeveloped land tax to supporl service payments. The developed property is more able to suppoi tax burden because it can be offset against income producing pro1 This group advocates a developed land tax far in excess of the prc tax rate. By creating a higher income stream from developed taxes, the undeveloped tax can be allowed to drop to a lower le1 be totally eliminated within a few years. < e e Summary of Mello-Roos District Proposal June 29, 1990 Page No. 11 . The question of the ultimate financing plan for Rancho Santa Fe remains an issue with both the property owners and staff. Sei unresolved matters remain including: - When could a 1913/15 Act Assessment District be forme construct Rancho Santa Fe Road? Would the City allow the use of a Mello-roos District for project? And if so, would policy 38 remain unchanged relation to the pass through of taxes to home owners? What other forms of guarantees would the City accept in 1 of a completed district? - - - Would the City consider forming a Mello-Roos Distric guarantee funding and later replace this district wi 1913/15 Act Assessment District? A 1913/15 Act district is the preferable method for fundin< construction of this project. Rancho Santa Fe Road meets conditions of Council Policy #33 which defines the use of asses districts in Carlsbad. be formed following the completion of design. This is expected to place between 12 and 24 months from now. Although a district cou formed using estimated construction costs, the wide range of vari associated with this project make early estimates extremely dif f ic The Mello-Roos Community Facilities District could be used to fi the road using Council Policy #38. This policy allows the creati a separate CFD to fund facilities having a significant public ben This district would be an overlay on top of the City Wide CFD now considered by Council. Under policy #38 CFD taxes are not allow pass through to the home owner. The developer is required to pa any assessment or tax at the time of construction. The va developers in the southeast corner of Carlsbad have indicated that condition makes the Mello-Roos district unattractive. Other forms of guarantees have been discussed. The City has acc letters of credit for a variety of projects where a strong guar of funding was required. Also bonds were used in zone 5 recent guarantee a smaller road improvement project. The City is open t discussion of alternative guarantees. A combined Mello-Roos district and 1913/15 act assessment distric been discussed as a possible solution to the guarantee. The M Roos is used as a preliminary funding mechanism with the abili issue debt for the road construction if a 1913/15 act district i formed. The Mello-Roos district is later replaced by a sta 1913/15 act district. Although this appears to offer some It is the City's position that a district e 0 Summary of Mello-Roos District Proposal June 29, 1990 Page No. 12 possibilities for a simple solution, recent discussions with counsel and the consulting engineer indicate that this is an extrc complex process. Staff will continue to work with the property owners on these and ( issues. Council may wish to have staff develop issue statement these questions to help focus discussion at the public hearing. The schedule of events to come is as follows: Resolution of Intention. July 10, 1990 - adoption of the Res011 of Intention. This date was not set until staff had an opportuni fully discuss the CFD with all interested parties. Public Hearinq. Between 30 and 60 days after the Resolutic Intention, the City Council will call a public hearing to discus Mello-Roos District. At this public hearing, the general pu: interested property owners or other individuals having a desii address the City Council on this issue may have an opportunil present their views and concerns to the City Council. If the Council sees fit to continue the process, the Council will then for an election. As with assessment districts, formal protests be received at this time. If more than 50% of the land owners ( on acreage) file protests the district will not proceed. recommends that Council consider holding the public hearings on A 14 or 21. Election by the Property Owners. Following the public hea property owners within the District will be given the opportuni vote on the formation of the District. The vote will be on the of total acreage, one acre equalling one vote. A two-thirds vo required for formation of the District. The vote must be held be 90 and 180 days following the public hearing. If the vote is taken by the County Registrar of Voters, the election cannot before 125 days after the public hearing unless the Registrar app the earlier date. Certification of Results and Validation. Following the voting prc the City will certify the results of the election. The Counci also choose to validate the creation of the District through a challenge. This legal process establishes that the District was f using the appropriate procedures and that the ultimate district withstand any challenge that may be brought. The validation pr may take between 60 and 120 days depending on the extent of argun 0 e Summary of Mello-Roos District Proposal June 29, 1990 Page No. 13 ALTERNATIVES The CFD is one of several alternatives for financing the C infrastructure needs. If the Council chooses not to proceed with program, capital project funding will remain as shown in the CIP. CIP does not guarantee funding of projects; it indicates the C ability to construct facilities if fee revenues are adequate. example, proceeding with bond or COP issues for the funding oj library will require the pledging of Public Facilities Fee re backed by the general fund. Interchange construction on the sch shown in the CIP is dependent on loans from TransNet funds whic' repaid from Bridge and Thoroughfare district revenues. Other pro will remain dependent on revenues from fees or reimbursement agree with property owners who construct facilities in advance of the C schedule. Council could also consider doing a series of smaller, localized CFD's to finance a single specific project or grot pro j ects . The staff recommendation is to proceed with the single financing City with the best guarantee of funding a dependence on development for all fundinc a ---- ,A t:< 1) i! ;]:.t]l 1;r THt :!FF:CE '5; Til; CiT, pity ;:. ''-tL; iKC'L ' lt1FS A 17NS 8, 1-1iiim vtI-FKm-. TIF SA!) [,,cf>G COilbl'Y 4SSiSSOR UAPS FOR A FTLI'F2 F5C m, BOUNDARIES rn :- . 31:r ------ i 1 !j lp ! !i '-1 34U' ,,, . I* 4, ,%, A .E \IO1 n I\ . .. -7.- - ,??$ ' %y,. . .~ StI' -7r-m- RrFERFNCE THE SAN DltGO COUNTY AGSCSSOA'S MAPS FOR A DETAILED DESCRIPTION OF PARCEL I.INI:S AND DIMCNSIONS ----.TmFwT&- 8,". I8 ?I., , ', , *,,.'. , I' --m- - I . - - BOU 4 1TY FACIILITI rre mi CITY CF CkFL.S8A\3, CO:.)N->' OF ;A% JiEGO, S'h T'L e!- C,\!.lFDR'IIA C ZO 7 -~.~ >. / .: - ." .. '\ I,. \\ , 503' /' I .:;p 1: \ ,4 / /. I I ---- REFERENCE THE SAN DIEGO COUNTY ASSESSOR'S MAPS FOR A DETAILED DESCRIPTION OF PARCEL LINES AND DIMENSIONS S E 6 m I I 1. p. -3 I \ I I , I I I I -\ $1 \ / I \ \ 1 A1 PAL ( t I J i Or IUEN rli IC v ‘wii ,inL ~oi iylr)iiti r /y c‘ J , 7- i\- -- / \ \ l / \ 1, 7 ---- I 1 i I I I I I I / / L / -2 RfFERENCE THE SAN DlEGO COUNTY ASSESSOR’S MAPS FOR A DETAILED DESCRIPTION OF PARCEL LINES AND DIMENSIONS snE .:.. , . - *VI, , ... . . . -- ~ d I -~.-.-~~--,-.-.--.--"-. . - __._. .. W BOUNDARIES U 4 m CIT< Ct !XRI.SBAC. COUNTY Of SAY! 31t:GO. STATE OF CALIFORNIA - -- ., ....- .._ - . 6c ;i .. -- .-. ,L ..-..-. --.e - ,... ",; - ,- . d',o' - - - .- ~---L.. -~ ...- _-_* -. ---*-. ------- *- ES AND DIMENSIONS SHFFT 1 O! Cir. IF 'X~J'A i- d,!,' r-- 7 - . . . .. .~. ~ YWVIWY~I IILV OF COMMUNITY FACILITIES DISTRICT NO. 1 ( l’l II LAlil f.,t I - ) 4 /I I , \ A L’ , .X I. I I I c v1 I i I ----- 4E 1. %i ) / / f ‘.lliFI 1101 1,) ~~~~~~~~~ I I h m -. .. - I* - 150' !i ALL I,' U WIW AN ASSLSSGR'S PARCEL IIL'ULII,< *RE UD I co~.tu~~ti~rr FACI..IT,ES ~~sinicr - p-- - .- --i.p.--- - .-. SHEF REFERENCE THE SAN DIEGO COUNTY ASSESSOR'S MAPS FOR A DETAILED DESCRIPTION OF PARCEL LINES AND DIMENSIONS PILLSBURY MADISON 6 SUTRO SAN FRANCISCO 101 W BROADWAY LOS ANGELES SAN JOSE SUITE 1800 WASHINGTON, DC WALNUTCREEK SAN DIEGO. CA 92ioia2oi ORANGE COUNTY SACRAMENTO TEL (619) 2345000 FAX (619) 236-8083 January 28, 1991 VIA TELECOPIER Mr. Don Rideout City of eiirisbd Si-. ihnageiiient AmPyst Growth Management Division 2075 Las Palmas Carlsbad, CA 92009 Re: Community Facilities District No. 1 Dear Mr. Rideout: I have been directed by the Kel-Cal partnership, the Kelly Family Carlsbad Partnership, the Kelly Family Trust, Mr. & Mrs. Allan 0. Kelly and the Kelly family relatives, as the owners of the following parcels, that the parcels would vote "NOrt on the formation of the proposed Community Facilities District No. 1 for capital facilities. The owners are compelled to vote ItNOtt because of their uncertainty over development status of the parcles, the cost of the facilities and their concern over having a source of payment for the taxes associated with these parcles. The parcels include: 433 Acres comprising the Kelly Ranch owned by Kel-Cal partnership and the Kelly Family Carlsbad Partnership: Parcel Numbers: 207 101-12 207 101-15 208 020-28 208 020-30 208 020-33 0 0 0 0 0 -0 0000000000000 2 9 00 u) 91 u) b 52 0 -rggggggggggggg d3ddddddddddlridd o~oooou)oooou)mom ~="--9~m-o-o-""W-o-b-" awm~mmwwmcnmrmm rNr TO t $23 0 E 5 5 U. d sal &$ c z u =.e;- Q g5 g 4 .- 5 5% 2 8 ma 5 oac&io u =e;, E 52z3 h B :2zz Q, moEnu3y P K z yz: SUSS 0 - $~n~~~~~ni=p am a= ~~~$~~~~a=g - oZjb$s 522 3 -.SZ.= ndoZuo~oddnnSg ;szl8ruododdaa~g g =oaE*3smz2:'i5's =uzzmzs ;E -z;;;gzgjg;gg ?.g$'m~c"sagggp, p $p$$Eg C m 0 v) E x- '~~,~~gg2$3~.g~Ed I r aJ c 4J 00 k ala dEtn rnhd -4 0 4 00 k EUIa uc Q UP) mi4p: 0 CGO -4 c a wm f4 . ad! 6 L 3 2-z 3+Iu 2 aJw -tu m Qd 04JW H-r( 0 mvl 6E OlJO ku 8 2 353 CQ) o> x -4 -4 -4 c, c, amlac, a 5 a3 m k 0 c au c a Q) c -1 c a c, maorlm VI i4-44J4 XI> -4yI i, c 9) a bra 4J mcm 04a-4 b Od ala UI m w-r( a14 m E: 3 E:-4 a 01 3d *c k hvluld m k- vlam Zd aJ k ui fi 0 01'1 Io caJ a-4 E d zy3; 8 z t 0 .r(wc,m k 0 vlca Q +J Qk Q ix3 cnn-4 m VI H 0 QlQlUY H qG #k p: \oBc,aJfu ac u tn 0 -4 8 Od E: t3 E -4 4J -4 aJ aJ # 13 Id *EO0 8 tfsoo+r F: 2 2 sa ,y Wdk I/% alal Si, 8 Jd w n$ ~$5 p: PC c2 pxi @OS0 p j*l 3, 2g C8 10 al ut4 u-4 ~&m kw 0 0 aw4w wmu~ouo t; e 2 a., LD 4% CL SB de ut mu, <'g 2- f, 311 2 -1- tj 2P r'"" ELChMmO REht / sf! 3 B g 3 li a PC A 1 b 2 2 z!3 04 g2 I ah c 04J a m 4J -1 a E 0 tn a k r( 4 a,c w 04 a,WJJ w Ind a a E: m +J cam AX v1 4J -?i alula, n a0 c mu k OGO a do 0 dUaJ - nm -4 E: 4 -1 -4 -,co 4J 3a4JO ma 4 c* (00 c -d -4 x 4Ja w c-4 a m k a4Jc g- -4 a, nptnalu XC .r(o)arn Z% a, 8 $2 k i2 2: s s ?s E a-4vc-1 ac 24J 4J :: WE: €I OQI : UkQ1 0 3 am CI aWW 2 1 4J -n 2E? s -4a ma E &a uaa w e: Eu1 zg A&BQ) Od $2 Q)4J 2 ah a0 go4J dJJ Iv)alE Apt, a 0 4J Hd 4J a0 E &Ram R -4 m o url n 4J w OQ w 4Jrl m 4Ja u1 a u oaoa B E4 &a 2 *;a g #4JL QIO 8 $211 ;!I ; tp.5 crl CXNtn n 44 ft Barn6 6 Ugk 0. e 2 2 0 E+ k7 4g 2 8 x; dE 'rl ozL / t - !ii 2 0 E 6 11 7r J =- t- IJ P, E Q) sa z 0 V v3 d gc 3 -E OQ) d4J Q) 3s E2 - h 40) a aI4Ju1 Q) u1 um~) a E E-dU k m m -4 rl -r( a a xorl a E r( 0 ul4a nJ Id rlkCUE: 4J aaoacac m zauw m m 4t-I 4J % rcamol c 4JwrlE:c -4 0-d tu o LI u 3 *Ab) am54 Z k : E! a, vI4J4J CrUONd w aal*d*dz Id 0 En4J c *E OOIdId EUkkbr. 0 chalk% -dm aou 4J Q) 0.4 br crrLJnmm 2 OE: 0 k cl it 3iL kal R 2s 0) SW 0 E 4JIdQ)-d VIcw4J,cw 4 % 8 no :: zx GOE H cu mow p: 0 a k-49, u Urlk4J4J 00 -4 Id u1 Id4 -d u Id Id1V)*drlO ' E -4 \o !!a 2 g ac k w n 6 * 2 v a 0 3: E G 3 Lil z y "4 i 111 hgj; 111 i 1 SI Q)-cr\orl c ac PC nwa (0.4 0.4 PIP; ~2 UBPCB 5% ck OQ) '6 n w z 1 W z n w fa g PC 2 0 H B 2 s! 8 R B ! li _J r 1 c a' 4J k- a a a am a4 c aa 0 a9) tF4J4all(d 09) rn -4 -4 c a-4 co -4 wca v)4J -4s3rJza E 0-4 c c -d x -4 arn urn Odul kkul rn E k4 -4 r: oc ill +2 yEZ2 Ba W3Y * 4rp E-4 -rn rp 0 cw ;w-$ ccalaCII1 sic k (d k al aa c $8 .$ a0 a9 e".:," a(d4 al(d4J*€LUaI urn -4&0* 4J c&aa"u" k u.44 a aal*rt id 1 fd IJC 8*2P.c,c, UO mi, u Ok rl a .c-4 (dakaCr 9) (d3rn 9)-49)0&4(d a-4 0 mc . 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I , , fig a'o" ga $k 9 Y 'C_BL ; DEL HOB9 2- iq yy 7 /LA : Lu u, I!# .\ uv YV A CWS PC 1 >** CARLBAD B 0 w 4 Y BLYD R " mc x a -4 -k u u culd'u1 0 u1-4 a+, H al mu u-4 H-ng-4 Crl o url a-r( al k k-rf E: u ~1aiuo,a U tr 6 68 Ex 4 L w VI u1 a k a a r= fd IJ m % T % al E i 'E c 0 k 0 +J 0) P n 0 +J i a t:E 4z z z t; * E 0 z b z W V 3 5" :gi I .. 8 $0, a4J <E Pi91 -4 E-c aw wu Val en Zh q 0 y--+ (y;..- '- b July 6, 1990 TO: CITY MANAGER FROM: Finance Di rector RESPONSE TO LETTER FROM RON ROUSE - JULY 6, 1990 I have just received a letter from Ron Rouse of Luce, Forward, Hamilton & Scr raising a series of issues associated with the City wide Mello-Roos Distr The points in this memo may be helpful in understanding the status of the is raised by Mr. Rouse. 1. The Zone 5 property owners suggest that the City consider including flexibility to allow the creation of future special improvement distr to fund specific zone or area requirements, such as the Zone 5 Special P Fee. Council policy 38 allows the Council to create a special Mello-Roos Distr as necessary to fund pub1 ic improvements that meet the pol icy criteria. Zone 5 Special Parks Fee should not be confused with the City wide Me' Roos District issue. The City Council agreed to consider forming a 1( Mello-Roos District to fund the widening of Palomar Airport Road east o Camino Real and to consider the inclusion of the Zone 5 Special Parks in that district. The Zone 5 landowners are asking the Council to consider placing conti on the City wide Mello-Roos District to insulate the commercial/indust developers from a cash short-fall created by slowdowns in the resideni development, which could ultimately effect their tax rates. One of the concepts used in developing the City wide Mello-Roos District the allocation of the total cost of projects between residential and I residential development based on the fees that would have been generate( each type of use. In doing so the District anticipates funding approximal 65% of total project construction costs from the residential developr fees. Approximately 35% of total funding for projects would come from ti on commercial and industrial development. There is currently nothing wii the District structure that would mandate that taxes on one type of land be insulated from a slowdown in the total cash flow caused by reduction: a single segment of development. Such a condition, if included in the Me1 Roos tax formula, could seriously restrict the Councils ability to f projects in the future. At this time staff would not recommend the inclu: of the condition as described by Mr. Rouse. 2. A 1 a 0 .- RESPONSE TO LETTER FROM RON ROUSE July 6, 1990 Page Two 3. The Zone 5 landowners are advocating that the Council consider a hi developed land tax that would then be passed through to developed landown The stance is consistent with the Zone 5 position advocated earlier in CFD formation process. The higher developed land tax allows the Counci set a lower undeveloped tax rate and eventually eliminate the undevel The City of Carlsbad's Mello-Roos District proposal includes a two ti taxing structure for land. An undeveloped land tax is assessed by the prior to development of the parcel. This undeveloped land tax is all to float depending on the cash flow needs of the District. A maximum rate is established by the CFD, however the maximum tax is rarely, if e assessed. The tax placed on the undeveloped land is only that am necessary to make up the difference between taxes received from devel property and any one time tax payments and the necessary cash flow de for any given year. We are currently working on a forecast of the tax r which would be assessed under the current tax formula. The current CF' based on the assumption that undeveloped land taxes for commercial industrial property would be set at or below one half of the maximum tax each land use type. The City has been hesitant to advocate a higher developed because of City's long term involvement with this project. The City Council wil establ ?I shins taxes not only on current property owners but a1 so on 1 andow fifteen and twenty years from now. A fair and equitable tax structure be established that considers both existing and future landowners. artificially high developed tax shifts the burden of all project develop onto the devel oped 1 andowner. 4. The Zone 5 property owners are concerned about the City's commit1 regarding the satisfaction of its Growth Management Program requireml through participation in the City wide Mello-Roos District. They are as that the Council offer assurances and protection that by participatin! the City wide Mello-Roos District developers have met the growth manage1 conditions for the projects funded by the District. In addition, they asking for an assurance that participation in the District protects t right to develop at certain intensities, densities and absorptions sched insulated from future changes. It is not now nor has it ever been the City's position that participa in the City wide Mello-Roos District is a "developer agreement." The has consistently stated that there are no guarantees associated with formation of the Mello-Roos District. The City will make its best effc to fund the projects included within the District on the time schedule shc In the event of a cash short fall within the District and a change in project construction schedule, there will be cases where growth manager standards are no longer being met. In these cases, developers will havi work with the City to find ways to meet the growth management standard: tax a1 together. 0 0 .. RESPONSE TO LETTER FROM RON ROUSE July 6, 1990 Page Three 5. The Zone 5 property owners are also concerned about the zoning for 1 properties. They want specific confirmations that their property wil taxed at the Industrial Rate. The City will impose taxes based on underlying land use zoning. Accor to the most recent listings, the Zone 5 property is zoned PI, or Pla Industrial, which would be an industrial use. Future land use changes c affect this designation. Generally these changes would result fro appl i cat i on by the property owner. In addition, Mr. Rouse indicated that they have been attempting to information from the City on the Mello-Roos District. It has been our PC to share any information we have in our office as soon as it is available tc However, we are not under any obligation. to share drafts or information thi incomplete or not accurate- The Zone 5 property owners have receivt considerable amount of special attention throughout this process. We the Zone 5 1 andowners through their representatives available at the earliest possible time. Attachment cc: Aity Clerk I 0 a LUCE, FCIRWARD, 'HAMILTON & SCRIPPS 4s A LAW PARTNERSHIP INCLUDlNG PROFESSIONAL CORPORATIONS FOUNDED 1873 SAN DIEG iio WEST A sn THE BANK OF CAUFO REGENTS SQUARE 11 LA JOLLA, CALIFORNIA 92037 4250 EXECUTIVE SQUARE, SUITE 700 SAN DLEGO, CAUFOI (619) 236-14 TELECOPIER (619) 455-1354 (619) 455-6611 RONALD W. ROUS 1 PARR(ER - July 6, 1990 DIRECT DIAL NUMBER (619) 535-2605 VIA HAND DELIVERY Mayor Lewis and Members of the Carlsbad City Council 1200 Carlsbad Village Drive Carlsbad, CA 92008-1989 Re: City-wide Mello-Roos Proposal July 10, 1990 Hearing Re Resolution of Intent Dear Mayor Lewis & Councilmembers: consisting of Carlsbad Research Center, Carlsbad Airport Cen Carlsbad Oaks East, Morgan/Palomar Industrial I and the Huntington Beach Company. The purpose of this letter is to to your attention certain concerns and outstanding issues relative to your council's consideration of a Resolution of Intent for the proposed City-wide Mello-Roos District. As you know from prior communications and council appearances, the Zone 5 landowner group has been actively involved in structuring permanent solutions for the Zone 5 L Facilities Management Plan obligations, including its share city-wide facilities. In Augmt, 1989, the group submitted comprehensive financing plan. We are writing on behalf of the Zone 5 landowner group I. The City set that specific proposal aside while it studied a city-wide Mello-Roos Distr Since that time, the Zone 5 landowners through its consultant, Doug Ford of Douglas Ford & Associates, have attempted to closely monitor and provide constructive input the city-wide Mello-Roos program. We now understand the COL intends to consider a Resolution of Intent on July 10, 1990. Despite repeated efforts, the Zone 5 landowners have been ur to obtain copies of the consultant's information and back-uy which is critical to evaluation of the proposed city-wide pi from the landowners perspective. Consequently, we are not ? to make specific detailed comments at this time nor are the owners able to evaluate their position on the city-wide pro< without such information. l e a LUCE, FORWARD, HAMILTON & SCRIPPS r- Mayor Lewis and Councilmembers July 6, 1990 Page 2 However, we want to bring to your attention and encourag City to assure that it has a viable city-wide Mello-Roos pro by including in any Resolution of Intent, adequate language address the following areas of concern: flexibility to allow creation of future special improvement districts to fund specific zone or area requirements, such a special Zone 5 parks fee. It is our understanding that under the city-wide pr generation are separated from that of the residential, with component essentially standing on its own insofar as tax rat and absorptions. "expected" and "maximum" tax rates on undeveloped acreage fc residential and non-residential properties is significantly different. The Zone 5 landowners would expect to see contrc place insulating commerical/industrial undeveloped land tax from increases in the event that the residential side has re shortfalls as a result of slower than expected absorption 01 other factors. Likewise, the residential side should be insulated from its undeveloped land tax rates being increase a result of any slower than expected absorption from the commercial/industrial sector. tax and developed tax rates for commercial/industrial proper the Zone 5 landowners have consistently advocated higher developed land tax rates and lower undeveloped rates. In tk commercial/industrial sector, the project financing, project viability, cash flow and other market issues indicate that 1 preferable tax structure would be to increase the developed thereby reducing undeveloped land taxes. We believe this ci achieved without adversely affecting the overall program. Another major area of concern relates to the City': commitment regarding satisfaction of its Growth Management Program requirements through participation in the city-wide Mello-Roos District. wide Mello-Roos District appears to be based on the project€ density of development and absorption schedules. If taxes z be imposed on the basis of intended development densities a1 absorption schedules, then there should be comparable assuri and protections that by participating in the city-wide Mellc District, those development intensities and absorption schec are protected from future changes. J "7 1. The proposed city-wide program should include the 2. the commercial/industrial properties ' absorption and revenue 2 In turn, the marginal difference between 3 3. With respect to the allocation between undeveloped ..j 2. 4. The entire financial structure of the +--_. " . _- a I) 1 LUGE, FORWARD, WILTON & SCNPPS Mayor Lewis and Councilmembers July 6, 1990 Page 3 5. Finally, each of the Zone 5 landowners wish to conf: that their projects fall under the "industrial" tax rate categories for undeveloped land. The Zone 5 landowners will continue to try to obtain and analyze all of the backup information and may well have more specific comments at the July 10, 1990 hearing. However, in interim, we request you include sufficient flexibility in an Resolution of Intent in order to accommodate at a minimum, t foregoing issues in fairness to all the property owners who evaluate the proposed city-wide program in the coming weeks. do not believe that any of these issues will adversely affec City's goals and objectives in connection with the city-wide Mello-Roos program. jagd, i i nald W. Rouse G of Luce, Forward, Hamilton & Sci RWR:ar cc: City Clerk .. City Manager City Finance Director Mr. William P. McCubbin, Carlsbad Research Center Mr. Dean Greenberg, Carlsbad Airport Centre Mr. Paul Tchang, Carlsbad Oaks East Mr. Howard Cornell, Morgan/Palomar Industrial I Mr. Don Means, Huntington Beach Co. Mr. Doug Ford, Doug Ford & Associates (NOTE : Letter prepared at 5:OO p.m. July 5, 1990.) L I Q e CORNELL ASSOCIATES, Invest men t 12625 High Bluff Dr., Suite 201 / San Diego, CA 92130 / (619) 792-6677 / Fax (61< July 10, 1990 Mayor Lewis ana the CarlsOad City Counci 1 1200 Carlsbad Village Drive Car?sbaa, CA 92008 Re: Hearing on July 10, 1990 re: Resolution of intent Citywide Mello-Roos Proposal Dear Mayor Lewis and Councilmembers: Our partnership ESpectfu!ly requests a thirty day delay in t Resolution of Intent for ?.he Citywide Mello-Roos proposal currently scheduled for this evening, July IO, 1990. Our partnership is a ?andowner along Palomar Airport Road wizhin Zcne 5 area. Through cur participation it.! the Zone 5 Landownc Group we have been unable to ob-tain the necessary informatior from “ihe City for us to evaluate the effect the citywide rneli roos will have on our property, Our site is an undeveloped, industrial zoned site and the projected tax rates for the citywide rnei’io-roos are very important to us. Sincerely, MsrganJPalomar Industrial I < __-... ... .--- :>//Ad-&!/ /---- Howard @. Cornell Co-general partner cc. Zone 5 Landowners’ Group o PU~ERCLIFF ~,c,,,,, "I:U PN, 7l4~ ;* c LERK 5 OFWE 2729 Ma.n srraet, 4 2s3z tiwLot: Sea+, Ca'l;;rrn 3 z-&!J.2agg ;714,3*435: ;%x 714 965 " 3f59 July 16, 1999 my3r CLLguaB A, mwi€l r",kry Ckxmci.9. Members CF'-.- -2 of Zarlzbad s200 Elm street '"m.ir.lsbad, CA 92QQ8-1989 $Kmx.w4 I' Gr2?.2-::? :4s$-+&Jz i; Finc",ncfI-s?. ?: "3 g.Y=*?.&&&2 , ?%?I, 1G-R~~P - ,*l@ Eayar r&--- *,:s and City Cmd-?citP; As :: owx~eli GZ approxlxsately 100 acxss fA*- %he ~it-y-~e z plaLzirtg district, we ere wr5ti.n~~ in r~qasd te3: mnZg;iht's wndersta_rding the City plans to mave foz-~axl-d wi.t,h Zomml " - procxxx3Lngs and e8tablish a city-wide M~ilo-Kcms D3$ ..; would appreciate this letter being indu6ed 4% part 02 ?*-r It- 14 - Cr~k-th MEEEL~EGR~~% F-FIXUICX~CJ PX-~..~~XZT, 1: record for tonight's city Coi$ncSl b"rreetkng. Is genEaral, WE! supp3rt the use 0% Hcllo-R~ms fiaGJ-fln.;: zegksnal infrastructure needs as conte~sis"r,ed UZBEL Growth mar nag em ex-^ PTan, However, we h3va a-v~ral E=C~ZC~IT - ~e to the City's QropSed EI~XLO-ROO~ F~CXJ~~TR, A few sf the.-. 1 CC' rielate to the timing and fair share pro-ram apg&icee~.~ c taxing structure on the V~X~OJS pr~p~rtie~ i:b~~s',<~~~~i Inckuaions in the "uistrict. ~e feel we have nat bee~rr given adequate time ta dully evalua - :apact af th@S#i! btms, AS yO?i know, ap~~rovef. of the Iiiasolut ialtcsntiim tonight k'OGld limit the abil8";y of the City to a these COrrCetns ~ Therefore, we respszcfully zeq2Gs% &he Council mnsfder continuing tkis ftw. fa a 34 day pzrio5 so Sincerely, CCii%glE?-& Our eVslUbtiGA Of e%% pI?C>pGSEd DiE%;;E2CZE F?J$L hw- t Don Means 1 1 i i I Q a &- PROJECT FUTURE P. 0, Box 4650 Carlsbad, CA 92008 July 10, 1990 Dear Mayor Lewis and Councilmembers: RE: AB 10689 - GROWTH MANAGEMENT FINANCING PROGRAM: CITYWIDE MELLO-ROOS DISTRICT PROJECT FUTURE continues to have serious concerns about the establishment of a Mello-Roos Community Facilities District in Carlsbad. We are, accordingly, resubmitting herewith the January 30, 1990, letter to the council from our attorney, Roy Gorman, whose comments on the relevance of the General Plan Update to the proposed facilities district are even more consequential in light of the city's recent decision to conduct a comprehen- sive revision of the existing General Plan. We are also concerned at the lack of workshops for the general public during the formation of this important new public policy, Such workshops were held at City Hall for developers and landholders, and private meetings were available with the Finance Director to anyone on request. While FUTURE gratefully acknowledges Mr. Elliott's helpful- ness and accessibility, such private communications are no substitute for consultation with the general public. hearing on the matter in August. of the last steps in the formation of the district, however, and does not provide a workshop opportunity for the exchange of information and opinion that channels public input during the policy making stages. The developers and some individuals had the benefit of such a channel: the general public did not, has taken since it won its ten-year battle with the Coastal Commission to open protected coastal agricultural lands for development. By the City's own calculations, they expect residential construction to more than double in 1992 and to stay at an accelerated annual rate till the end of the decade. We understand the council plans to hold a formal public The public hearing is one Yet this is arguably the biggest pro-growth step the City The proposed facilities financing district encourages development of vacant land--contrary to General Plan goals--in two ways. First, it acts as a disincentive to leave undevelope i 8 . * k'U'l'UKl3, Me110-KOOS DiS riCt, 7/10/90, p. 2 t, .r land in open space, since owners will be assessed an annual vacant land tax until they develop. Second, it effectively abolishes the growth management plan's strongest safeguard against galloping development: the requirement that developers, themselves, guarantee financing for public facilit needed to serve their projects. The proposed facilities financing district shifts this financial burden from the private sector to the public sector by using municipal bonding authority to borrow the money and imposing special taxes on owners and developers of vacant land to service the debt. On a technical level, FUTURE feels the criteria for compul sory annexation need clarification. As written, owners of vacant land anywhere in the city could be required to join the district upon application to build even one house on one lot. Also, as it now stands, the zero tax base for land in agri cultural zones contains no restrictions on future development and no provisions for a retroactive payback if and/or when the land is developed. In defiance of specific objectives in the Land Use Element of General Plan, this oversight increases the likelihood that agricultural land use will disappear in Carlsb by build-out, since the Mello Roos plan rewards future conver- sion of agricultural land by increasing the profitability of deferred development. FUTURE strongly supports a zero tax base on agricultural land in the district, provided the council closes the present loophole through which farmers who turn into ddvelopers escape their fair financial share of the district's public facilities obligations. Very truly yours, PROJECT FUTURE a-4 Aa*c-- Anne Mauch, Secretary ' fl/.jr, ('b=&flcf I (llP44d 0.3 fi Ptd h 7 3cc: "i 3.- +@ m GORMAN & WALTNER e ATTORNEYS AT LAW 1736 FRANKLIN STREET. EIGHTH FLOOR OAKLAND, CALIFORNIA 946 12 ~ (4 1 5) 465-4494 January 30, 1990 By Federal Express Mayor Lewis and Members of the Carlsbad City Council City of Carlsbad Office of the City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 Re: Comments on Proposed Implementation of Mello-Roos Financing for Public Facilities and Services Dear Mayor Lewis and Members of the City Council: This letter is submitted on behalf of FUTURE;, an organization formed for the purpose of protecting the specia qualities of Carlsbad which are rapidly disappearing. purpose of this letter is to apprise the City Council of the reasons why we believe the City is precluded from implementi the policy for use of the Mello-Roos Community Services Act. First, an Environmental Impact Report (EIR) should have prepared to address the likely significant effects of the proposed Mello-Roos policy prior to its adoption by the Citj Council. Since an EIR was not previously prepared, such a document must be completed prior to the implementation of tk Policy by the creation of Mello-Roos service districts. Sec the general plan update process should be completed. Absent adequate general plan, which contains an accounting of exist and proposed future development, it is not possible to demonstrate the nexus between fees exacted from land and are intended to finance. The development projects and the public services and facilities We understand the City's position, that the proposed PC is needed to implement the City's Growth Management Program, However, we believe that the adoption of the policy may havc significant adverse environmental effects which must be the subject of an EIR. In addition, it is incumbent upon the Cj explore alternatives to the Mello-Roos Act for carrying out Growth Management Program. Such an exploration of alternatj should be subject to public review in the form of an EIR. : forth below are our specific concerns. > 0 0 City of Carlsbad January 30, 1990 Page 2 A. THE PROPOSED POLICY, AS WELL AS IMPLEMENTATION OF POLICY THROUGH THE SELECTION OF DISTRICTS, IS A PR AS DEFINED BY CEQA We believe that the development or determination of a I! Roos policy is a project as defined by the California Environmental Quality Act (CEQA). The policy permits the us the Mello-Roos Community Facilities Act to assist in financi major public facilities. Further, the policy is primarily intended to apply to property which is predominantly undevel to provide funding for the completion of public improvements necessary to accommodate new development. The term "project" is understood to have "sweeping definition," Citv of Santa Ana v, Citv of Garden Grave (197 100 Cal.App.3d 521, 526. For a proposed activity to constit project under CEQA, it must only bear some minimal link wit1 activity, either by direct proprietary interest or by permit regulating, or funding a private activity. An agency's discretionary action qualifies as a project whenever it is "necessary to the carrying out of some private project invol a physical change in the environment." Simi Vallev Recreatj Park District v. Local Aaencv Formation Commission (1975) 53 Cal.App.3d 648, 664. There is no doubt that the Mello-Roos policy and implementation of that policy through the establishment of Community Service Districts constitute projects pursuant to The policy and its implementation will result directly in providing funds for the completion of public infrastructure must be in place for development to occur. In this way the policy both contributes to the funding and development of pi projects. In addition, implementation of the policy is like lead to more rapid growth than would otherwise occur. The possible effects of policy implementation must be disclosed environmental impact report. B. AN EIR SHOULD BE PREPARED CEQA requires that all projects which may result in onc more significant adverse environmental impacts be the subjec an environmental impact report. We believe that the follow significant adverse environmental impacts are likely to res1 a result of the adoption and implementation of the policy: 1. Induce substantial growth and concentration of 2. Extend public infrastructure with capacity to ser population; development : 0 e a City of Carlsbad January 30, 1990 Page 3 3. Facilitate the conversion of undeveloped open spac agricultural lands prematurely to urban developmer and 4. Lead to the degradation of lagoon water quality ax quality, increases in traffic and other deleterioL affects associated with new development. A memorandum from the Assistant City Manager to the Cit Manager attached to the proposed Mello-Roos policy describeE kind of major infrastructure project which is intended to bc financed by the Mello-Roos district as follows: During the review of the proposed financing plan, was determined that the major circulation improver required as a result of the Local Facilities Mana! Plans should also be included in the overall plan Page 3- 1 In addition, the facilities which may be financed by tl plan include the following: administration facilities, libraries, fire stations, schools, arterial highways, major bridges, freeway interchanges, maintenance and warehouse facilities, and water and sewer facilities, among other facilities. Each of these major public facilities to be fi~ as a direct result of the Mello-Roos policy is likely to ha7 significant environmental impacts. Impacts associated with completion of public facilities financed by the Mello-Roos district are in addition to the impacts associated with the development served by the facilities. To date we have not seen any environmental review docm which addresses the likely impacts associated with completic the proposed facilities or related new development, subject the Mello-Roos district. Further, we do not believe the cu. general plan adequately describes the proposed infrastructu improvements or the extent of proposed new development. C. ABSENT AN ADEQUATE GENERAL PLAN, THE MELLO-ROOS PI MAY NOT BE IMPLEMENTED The Carlsbad general plan is in the process of being updated. public review copies of the proposed update are n available for review. As such, we do not know whether an accounting of existing and proposed future land uses has be completed. Absent a general plan which contains a complete accounting of existing and proposed land uses, it is not PO to demonstrate the nexus between fees exacted from land and development projects and the public services and facilities 3 0 0 City of Carlsbad January 30, 1990 Page 4 fees are intended to finance. It is incumbent upon the City to complete the general s update prior to taking the following actions: (1) establisl the districts for purposes of collecting the fees, (2) determining the needed public services and facilities, and ( setting the fees for respective types of land and land uses upon their contribution to the need for new public services facilities. The correlation between needed new services an< facilities and new development should be readily discernablc the data regarding each contained in the updated general plz CONCLUSION For all of the foregoing reasons, we respectfully requc that the following actions be taken: 1) that implementatioi the Mello-Roos financing policy be deferred until the appro1 a legally adequate general plan so that the nexus between tl that an EIR be prepared which discloses the probable effect! associated with adoption and implementation of the policy ai explores possible alternative financing measures to implemei growth management program. Please provide this office notice of all upcoming meet: and hearings concerning implementation of the Mello-Roos PO: Thank you for your attention to this matter. plan and the proposed facilities can be clearly demonstrate( Very truly yours, hG- Roy Gorman cc FUTURE