HomeMy WebLinkAbout1994-03-01; City Council; 12608; APPROVAL OF PREPAYMENT AGREEMENT WITH CENTEX REAL ESTATE CORPORATION, TIERRA SANTA FE CT 90-4-r
APPROVAL OF PREPAYMENT AGREEMENT WITH
CENTEX REAL ESTATE CORPORATION, TIERRA
ITEM EXPLANATION:
On January 11, 1994, staff updated the City Council on the status of the efforts to crc
a financing plan for Rancho Santa Fe and Olivenhain Roads. Since that meeting
property owners and staff have continued to work on the financing proposal in an ei
to reach an agreement on a fkanckg plan which All be presented to the COUIIC~
future meeting. The few issues that remain outstanding are being addressed by staff
the property owners. The final financing program will be presented to the Counc
soon as these issues can be resolved.
The purpose of this agenda item is to ask Council to approve an agreement betv
Centex Real Estate Corporation and the City which will allow Centex to pre-pay t
obligation for the funding of Rancho Santa Fe Road as required by a condition on t
tentative map (CT 90-4, Tierra Santa Fe), a Ill-unit project.
Status of formation process
In January, staff provided Council with an update on the status of the Commu
Facilities District formation process (CFD No. 2). When formed, this CFD will pro
the City with the necesary funding to construct Rancho Santa Fe and Olivenhain F
no significant change in the status of the CFD since the January update, this report
focus on the proposed Prepayment Agreement between the City and Centex Real E:
improvements serving Local Facility Management Zones 11 and 12, Since there has 1
PreDavment Azreement - The attached Prepayment Agreement was drafted to allow t
property owners with pending final maps to proceed through the approval proces
prepaying their obligation for Rancho Santa Fe and Olivenhain Roads. This prepay
is designed to cover their fair share of the costs even if the proposed CFD fails t
formed. The Agreement would allow the City to collect a lump-sum fee prior to appi
of a final map for all units included in that final map and an additional amount
each equivalent dwelling unit at building permit. The Prepayment Agreement req
the property owner to pay an amount that is in excess of the amount that w
otherwise be required under the CFD. This excess amount is necessary to financc
projects on a pay-as-you-go basis in the event that the CFD is not formed. If the
is formed, the property owner will receive a refund of any excess payments.
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In approving the form of this Agreement the Council will be making two sigrufi
findings. First, the prepayment of the property owner's fair share represents an adeq
financing guarantee under the Growth Management Program. This finding is base
the special case assumption that a CFD is in the formation process, and it is the
which actually provides the financing guarantee. And second (in the case of the T
Santa Fe project), the Council will find that the size of the proposed development
units) does not create a major impact on the existing facilities. The City Engineer aj
with these findings as they relate to this project.
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Page Two of Agenda Bill No. Ia: 6 @
FISCAL IMPACT:
The funding of Rancho Santa Fe and Olivenhain Roads has been a major project foI
City for many years. The successful development of a financing plan that will sup
the improvements to these roads through a phased development program and a rati
CFD is a significant accomplishment. The projects will cost about $37 millio,
construct (in 1993-94 dollars), and will affect the development of about 2,400 acn
land in southeast Carlsbad.
The City's obligation for improvements is limited to the contribution of $6 million 1
Community Facilities District No. 1 to these projects. The contribution will be time
avoid conflict with other projects funded by CFD No. 1. The City is funding some of
CFD creation costs including limited engineering and financial consultant fees. Cot
has previously appropriated $30,000 for financial consultant services. These funds
be reimbursed to the City from CFD No. 2 as funds become available.
In a prior prepayment agreement the Council allowed California Pacific Homes to pn
$1,045,500 for 102 units to be constructed in Zone 11. The Tierra Santa Fe prc
represents an additional 111 units and a prepayment of $1,137,750 into the Rar
Santa Fe Road Project Account. The total received to date for construction of Rar
Santa Fe Road through prepayment agreements is shown in the table below:
- Dare Project Units Prepayment Amc
9/14/93 California Pacific Homes 102 $1,045,500
111 1,137,750
CT 85-9
1/11/94 Centex - Tierra Santa Fe - CT 90-4
TOTAL 213 - $2,183,250
EXHIBITS:
1. Resolution No. 9d-bs
Agreement .
Prepayment Agreement between the City of Carlsbad and Centex Real Es
Corporation.
authorizing the Mayor to execute a Prepayn
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RESOLUTION NO. 9 4 - 65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE FORM OF A
PREPAYMENT AGREEMENT BETWEEN THE CITY OF
CARLSBAD AND CENTEX REAL ESTATE CORPORATION
WHEREAS, the City of Carlsbad City Council has required that the fundinj
Rancho Santa Fe Road and Olivenhain Road (Project) must be guaranteed before
development takes place in the area bounded by Local Facilities Management Zones
and 12, and portions of Zone 6, and
WHEREAS, the Council had directed City staff to proceed with the formatio
a Community Facilities District (CFD No. 2) to finance the Project, and
WHEREAS, although the Council anticipates that CFD No. 2 will be formed ir
near future, the Council is willing to consider alternative financing proposals during
period from the present to the formation date of CFD No. 2, and
WHEREAS, such interim financing program will only be considered as long a:
Council finds that the formation of CFD No. 2 is proceeding in a reasonable manner,
WHEREAS, the Council finds that the formation of CFD No. 2 is proceedir
a reasonable manner, and
WHEREAS, the Council finds that the guarantee provisions related to the Prc
may be met through an interim financing program using an agreement between ce
property owners and the City whereby the property owner agrees to prepay his/he
share of costs associated with the Project, and
WHEREAS, Centex Real Estate Corporation (Centex) intends to build a 111
development in Local Facilities Management Zone 11, known as Tierra Santa Fe CT
and
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WHEREAS, the City Engineer has determined that, due to the size of the Cer
development, there will be no major impact on the circulation system at the present t
if the Centex development is allowed to proceed, and
WHEREAS, the Council finds that Centex may enter into the attached Agreen
to Pay Fair Share (Exhibit A) in satisfaction of their obligation under the Prc
financing conditions.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Carls'
California, as follows:
1.
2.
That the above recitations are true and correct.
That the form of the PETITION7 WAIVER AND CONSENT TO CREAT
OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO
FAIR SHARE, Exhibit A attached here to, is hereby approved.
That the Mayor is hereby authorized to enter into the agreement sh
in Exhibit A with Centex.
The amount that is immediately due and payable to the City by Ce
shall be equal to $1,137,750 (111 units @ $10,250 per Unit), with additional payn
to be made to the City as described in the attached agreement.
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4.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Counc
the 1st day of MARCH , 1994, by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Fi
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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z RECORDING REQUESTED BY AND 1
WHEN RECORDED MAIL TO: 1
City Clerk 1
CITY OF CAEUSBAD 1
1200 Carlsbad Village Drive 1
Carlsbad, CA 92008 1
SPACE ABOVE THIS LINE FOR RECORDER'S 1
Parcel No.
PETITION, WAIVER AND CONSENT TO CREATION
OF A COMMUNITY FACILITIES DISTRICT
AND AGREEMENT TO PAY FAIR SHARE
WHEREAS, the undersigned Property Owner at this time is process1
development within the City of Carlsbad (hereinafter referred to as "City'') a develc
project known and identified as Tentative Tract Map CT 90-4 (hereinafter referrf
the "Project"); and
WHEREAS, City has determined this Project to be located within the botl
of a proposed Community Facilities District known as Community Facilities Dist
2 - Rancho Santa Fe and Olivenhain Road (hereinafter referred to as "District")
WHEREAS, District is intended to be formed to finance those impro7
generally described in Section 1 herein; and
WHEREAS, Property Owner desires to proceed with processing pnoi
formation of District; and
WHEREAS, the Local Facilities Management Plans for Zones 11 and 12 re(
guarantee of construction of the segments of Rancho Santa Fe and Olivenhaj
described in Section I herein prior to the recordation of any final maps or the
of building permits within the zones; and
WHEREAS, condition numbers 56, 57 and 63 of Tentative Tract Map
require that the Property Owner provide for the construction of certai
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improvements including sections of Rancho Santa Fe Road; and
WHEREAS, compliance with the applicable Local Facilities Management P1;
Zones I1 and 12 and tentative map conditions is a condition of approval for the
map for the Project; and
WHEREAS, the City and Property Owner desire to agree to an alternate r
of financing the improvements described in Section 1 herein that will allow PI
Owner to discharge its fair share obligation for said improvements in lieu of partic
in District; and
WHEREAS, the City Council agrees that Property Owner, upon entering ir
agreement and upon payment of the fair share described herein, has met the requ
set forth in the Local Facilities Management Plan for Local Facilities Zones 11 and
related tentative map condition numbers 56, 57 and 63 for Carlsbad Tract Map C
to provide a financial guarantee for the construction of those improvements desc
Section 1 below; and
WHEREAS, upon entering into this agreement and upon payment of the fi
described herein, the City finds that property owner has provided adequate seci
the construction of Rancho Santa Fe Road, south of Olivenhain Road, and th:
posted to secure such improvements shall be released by the City Engineer; an(
WHEREAS, Property Owner voluntarily enters into this agreement; and
WHEREAS, the City Council has determined that due to the size of the 1
development, there will be no major impact on the circulation system at the prei
if development of the Project is allowed to proceed with sufficient financial g~
for future construction of Property Owner's fair share of the circulation improi
NOW, THEREFORE, in consideration of proceeding with the processing c
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the undersigned Property Owner hereby agrees and certifies to the following:
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1. Property Owner hereby petitions the City for the initiation of procec
for the formation of District which will cause the construction and installation a
financing of the following improvements which are more specifically described in E
"B" attached hereto. These improvements are generally described as follows:
a) Rancho Santa Fe Road North Phase 1 (RSF No. 1) La Costa P
to east of Mahr Reservoir
b) Olivenhain Road Widenina. and intersection immovemc
Olivenhain and E1 Camino Real
c) Rancho Santa Fe Road North Phase 2 (RSF No. 2) Phase 1
Melrose Drive
d) Rancho Santa Fe Road South (RSF So.) (Assumes Secondarv,
- Enchitas Citv Boundary to Olivenhain Road Full Improvementsl.
2. The cost of construction, engineering, legal and other incidental e
will be funded by the District.
3. Property Owner acknowledges its right to notice of and participatil
phases of formation under the "Mello-Roos Community Facilities Act of 1982," e
waives the proceedings required and all limitations contained in Title 5, Dil
Chapter 2.5 of the California Government Code and nonetheless with full know
such rights, completely and forever waives such rights. Specifically, Propeq
hereby consents to the proceedings and waives any right to protest the formati1
District and the ordering of the improvements under applicable California stal
consents to and supports formation of said District. The City shall exclude
Owner from the District boundary map if, prior to the adoption of a Reso
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Intention by the City Council to form said District, Property Owner has entered in
agreement and has paid to the City all amounts due as described herein.
4. a) Property Owner agrees to pay to City its fair share for the improvc
described in paragraph one (1).
b) Said payment shall be made in the manner described in Exhibit I'<
arid Method for Detemziriitig Fnir Share Obligatiori Rnriclio Sntita Fe arid Oliveithair
which is incorporated herein by reference.
c) The amount of Property Owneis fair share will be conc
determined by the City Council in the manner described in Exhibit "A" attached
d) Payment by Property Owner of its fair share of improvement 1
determined by City Council and set forth herein will satisfy its obligations
construction of the improvements described in paragraph one (I), as required
Local Facilities Management Plan for Zones 11 and 12 and Tentative Map C
condition numbers 56, 57 and 63, as these conditions apply to CT 90-4, su
adjustment as described in Paragraph 9.
e) Alternatively, if the District is formed and Project is included v
Property Owner's obligations to pay its fair share pursuant to the agreement
satisfied upon payment of all taxes imposed, established and payable to said DI
Property Owner acknowledges that this agreement to pay its fair s'
participate in the financing of improvements is voluntary and that without this as
Property Owner would be precluded from obtaining final map approvals or buil
other development permits under the provisions of the General Plan, Chapter 21.
Carlsbad Municipal Code, applicable zone plan, financing plans and related dc
until a satisfactory financing program had been developed to fund the construct;
5.
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a improvements described in Section 1.
6, Property Owner hereby waives his right TO challenge the ar
establishment or imposition of said fair share and further waives any rights to p:
fair share under protest.
7. This agreement does not affect, in any way whatsoever, the obliga
Property Owner to pay any other fees or assessments associated with Property C
development. Nor does this agreement relieve Property Owner from providini
public facilities required under conditions of the Local Facilities Management P
Zones 11 and 12 or placed upon tentative map CT 90-4 by the City.
8. Property Owner agrees that payment of its fair share is not a fee and
any and all rights to notice of or challenges to the establishment or imposition of:
share as a fee under provisions of Government Code sections 66000 g se~,,
successor or related statutes.
9. a) If the District is formed subsequent to the payment by Property 0
the fair share pursuant to this agreement, Property Owner's financial obligation
recalculated using the taxing formula established for the District. If that oblig
different from the amount previously paid by Property Owner to City, City shal
any excess, or Property Owner will pay to City any additional amount due (Shc
b) Any refund shall be made from funds available within District up01
formation and shall not be an obligation of City's General Fund or other revenue
c) In the event that insufficient funds are available from District's rl
Property Owners shall be reimbursed in the order in which funds were depos
City as soon as sufficient funds become available, as determined by the City
through the payment of one-time taxes or annual undeveloped land taxes to tht
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The City is not required to establish an undeveloped land tax within the Distr
provide such refund.
dl No reimbursement is required until the City Council determine
sufficient funds are available. Any refund to Property Owner shall not include int
e) If a shortfall exists, Property Owner shall be notified of the amount c
Shortfall by the Finance Director via certified mail. The amount of said Shortfal
be due and payable to City 30 days after the mailing of such notice.
f> The computation of the amount of any Shortfall shall not include i
charges.
g) If no payment of the Shortfall is made by Property Owner within
(90) days of notice of said Shortfall by the Finance Director, City may deny the i!
of building permits and/or take any other action allowed by law to deny
development of property subject to this agreement and to collect such Shortfall inc
but not limited to, a lien on the property. City's recordation of a lien shall not 2
ability to recover the Shortfall by other legal means concurrently, but no double I
will be allowed. The cost of such collection shall be an obligation of Property On
shall be added to the amount of the Shortfall payment due City.
h) Any payment received by the City under this agreement shall be d
in a special fund and may only be used to fund the construction of the facilities d
herein. Upon the formation of a CFD to fund these same facilities any amount re
in the special fund may be transferred to the CFD Fund, at the discretion of thc
Director.
10. If the District has not been formed for any reason by January 1, 1
amount paid by Property Owner under this agreement shall represent Propertj
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fair share cost for provision of those facilities described in paragraph one (1) a
further payment will be due from or reimbursement due to Property Owner.
11. a) Compliance with this agreement will be accepted by City as an alt
to the method described in the current Local Facilities Management Plan for Zones.
12 for financing the improvements described in paragraph one (1). This agreemer
nor require City ro issue building permirs or other development pennits or grant apy
or relieve Property Owner of the obligation 10 comply with all applicable provis
law, including but not limited to, Carlsbad Municipal Code Titles 18, 19, 20 and
b) Upon compliance with this agreement, the City shall release bor
agreements posted in conjunction with CT 90-4 to secure construction of Ranchc
Fe Road, south of Olivenhain Road. Said bonds being further descibed as f
Agreement 75-02, Labor and Materials Bond 11141308780, and Faithful Perfo
Bond 11141308780.
12. Compliance with the provisions of this agreement is a condition of a'
discretionary approvals for the Project. If Property Owner does not comply 1
provisions of this agreement, approval of the Project will not be consistent i
General Plan, the Growth Management Program, the Local Facilities Managemi
or the applicable financing plan for Zones 11 and 12 and all subsequent discr
approvals and permits for the Project shall be withheld by City.
13. In addition, the City will not approve any pending final maps, issue
building or other development permits or take any discretionary action until the
Owner has complied with the terms of this agreement due to be satisfied at the t
approval is requested.
14. The City may, at its discretion, elect to pursue any remedy,
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equitable against Property Owner and Property Owner's successors, heirs, assip
transferees, with the exception of owners of individual lots for which building pf
have been issued, to secure compliance with this agreement.
15. City shall not, nor shall any officer or employee of City, be lial
responsible for any loss or damage incurred by Property Owner or any successor or
of Property Owner, or by any occupant in Property OwneJs buildings, as a result
exercise of any remedies provided to City in this agreement. Property Owner ag
indemnify City for any liabilities incurred by City as a result of City's exercise ol
remedies.
16. This agreement and the covenants contained herein shall be binding up
inure to the benefit of the successors, heirs, assigns and transferees of Property
and City and shall run with the real property and create an equitable servitude UI
real property.
17. All notices provided for under this agreement shall be in writing and :
delivered in person or served by certified mail postage prepaid. Delivery of ni
Property Owner shall be presumed to have been made on the date of mailing re:
of receipt by Property Owner. Notices required to be given to Property Owner
addressed as follows:
Centex Real Estate Corporation
5962 La Place Court
Suite 250
Carlsbad, CA 92008
Notices to the City shall be delivered to the Finance Director, City of C
1200 Carlsbad Village Drive, Carlsbad, CA 92008.
Each party shall notify the other immediately of any change that woul
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any notice delivered hereunder to be directed to another party.
18. This agreement shall be recorded but shall not create a lien or security ir
in the property.
19. The undersigned further states, under penalty of perjury, that he is the
of the property as described herein, or an authorized agent of the owner, and h
authority to execute this document, including the binding authorizations herein. - Executed this 2% day of (cz IV;, ,+-'L/ ,193.
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PROPERTY OWNER
CENTEX REAL ESTATE, a Nevada Corporation co
(Name of Property Owner)
CITY OF CARLSBAD, a municipal
-)', .x' / By! t - /. ,c,L ' I& -, ,L-
(sign herd T
I ! 2 - !, ._ J44 6- 6,r-.,-
I /#'//f/Ghf ),-$>,fJ;,& I
(print name here)
c (print name here)
a\l\si& diu Ppsiotrl
(title and organization of signatory)
(Notarial acknowledgment of execution by PROPERTY OWNER must be attached
(President or vice-president and secretary or assistant secretary must sig
corporations. If only one officer signs, the corporation must attach a resolution cf
by the secretary or assistant secretary under corporate seal empowering that off
bind the corporation.)
APPROVED As TO FORM:
RONALD R. BALL
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civk BY L
DepW city Attorney +/w.
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%ersonally known to me - OR - proved to me on the basis of satisfactory evidence
subscribed to the within Instrument and ac-
to be the person(s) whose name(s) is/are
IZI PARTNER(S) I
c]AnORNE?'-'N-
1
EXHIE 0 W .. ..
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RATE AND METHOD FOR DETERMINING
FAIR SHARE OBLIGATION
RANCHO SANTA FE AND OLNENHAIN ROAD
The City Council shall use the following rate and method for determining the fair
obligation for funding the construction of Rancho Santa Fe and Ohenhain Road du
property conditioned to participate in the financing of these facilities. This cala
is done as part of an agreement titled PETITION, WAIVER AND CONSENT TO CRE,
OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR $
(Agreement) which has been voluntarily entered into by the City of Carlsbad and 1
property owners wishing to proceed with the development of their property in at
of the creation of Community Facilities District No. 2 (CFD No. 2). It is the CI
property owners intent to form CFD No. 2 to provide funding for those improvi
described within the above referenced agreement.
The following rate and method shall be used to determine the fair share and am01
from any property owner wishing to take advantage of this alternate funding mecl
Basis for Cos1 A llocntiorz
The basis for allocation of costs to property conditioned with the financing
improvements described in the Agreement shall be the Equivalent Dwelling Uni
which is defined as follows for residential developments:
Residential EDU Allocation
Single Family - Detached Units 1.0 EDU
Single Family - Attached Units 0.8 EDU
Multi Family Units 0.6 EDU
The number of each type of unit included in a development shall be determint
City Engineer based on the most recent final map submitted to the City for a1
The EDU determination for non-residential development shall be made by
Engineer when such a determination is requested by the property owner.
Engineer may request additional information from any property owner a?
necessary to make his determination. The City Engineer is not required tc
determination on the number of EDUs for any project until adequate infor
available.
The City Engineer's determination shall be submitted to the City Council in
report accompanying the Agreement. The City Council shall make the final dete
of the number of EDUs to be used in computing the fair share obligation for ar
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Type of Unit EDU per Cost per
unit Unit
Single Family - detached units 1 .o $10,250
8,200 Single Family - attached units 0.8
6,150 Multifamily Units 0.6
TOTAL
units Amount Due
Covered by
Agreement
111 $1,137,750
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111 $1,137,750
-e/ m e - A’
March 8, 1994
Annette J. Evans San Diego County Recorder
Post Office Box 1750
San Diego, CA 92101-2422
Enclosed for recordation is the following described document:
Prepayment Agreement with Centex Real Estate Corporation
Tierra Santa Fe CT 90-4
Also enclosed are instructions on how the City is to be billed fl
the recordation fees incurred.
Thank you for your assistance in this matter.
Yd&cNc Assistan Cit Clerk
KRK: ijp
Enclosures
1200 Carlsbad Village Drive - Carlsbad, California 92008-1 989 - (61 9) 434-28