HomeMy WebLinkAbout1995-08-08; City Council; 13262; APPROVAL OF PREPAYMENT AGREEMENT WITH CENTEX REAL ESTATE CORPORATION, RICE PROPERTY CT 85-10, AND RANCHO VERDE, CT 89-186
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4 APPROVAL OF PREPAYMENT AGREEMENT WITH
CENTEX REAL ESTATE CORPORATION, RlCE P MTG. 8/8/95
DEPT. CM PROPERTY CT 85-10, AND RANCHO VERDE, CT 89-18
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CW OF CARLSBAD - AGEWA BILL 11,
RECOMMENDED ACTION: Adopt Resolution No. 95-2~ authorizing the Mayor to execute Prepayment Agreemc
with Centex Homes for CT 85-10. Adopt Resolution No. yJ-J?pI/ authorizing the Mayor to execute Prc
ITEM EXPLANATION: Agreement with Centex Homes for CT 89-18.
For the past several years, staff has been working with the property owners in Local Facili
Management Zone 11 and 12 to form a Community Facilities District (CFD) to finance
construction of Rancho Santa Fe Road and Olivenhain Road improvements as required by
Local Facilities Management Plans for these zones. The creation of this district has 1
difficult and subject to delays because of the many issues affecting this area. Hal
concerns, the local economy, and land ownership have proven to be some of the n
significant stumbling blocks to completing the district formation.
This CFD (known as CFD No. 2) was intended to provide the property owners and the (
with a feasible financing tool which could guarantee that funds would be available for
construction of Rancho Santa Fe Road and related improvements when needed. The dela
formation of the district proved to be a major problem for some of the smaller prop
owners in the area who had met all of the non-circulation conditions placed on their tenta
maps.
In late 1993, staff proposed the concept of allowing property owners to prepay their obliga
under CFD No. 2 in exchange for an agreement. This agreement provides the City with
the support of the property owner in the formation of CFD No. 2; and 2) funds to begin P
on the most critical portions of the Zone 11 and 12 circulation plan.
Agreements were approved with California Pacific Homes (CT 85-9 in September 1993)
Centex Real Estate Corporation (Tierra Santa Fe, CT 90-4 in March 1994). The size
amount of funds received from each agreement is shown on the following page.
Attached to this agenda bill are two additional prepayment agreements for projects in 2
11. Both projects were purchased by Centex after the success of their Tierra Santa Fe prc
in the southern end of Zone 11. These agreements would allow the Rancho Verde and
Property projects to proceed through the approval process by providing a means for met
circulation system financing requirements found in the tentative maps and Local Facil
Zone Plan for these projects.
The agreement allows Centex to pay, prior to the approval of a final map, a fixed fee for
unit included on that final map, thereby meeting the obligation for those units to particj
in the funding of the Zone 11 circulation system. If CFD No. 2 has not been formed I
to pulling a building permit for any of these units, an additional fee is paid to the Cil
ensure that adequate funds are available for road construction. When CFD No. 2 is fil
formed, Centex will receive a refund of any amount paid in excess of the per-unit cost o
improvements, or will provide the City with an additional payment if the per-unit cost exc
the amount already paid.
By approving the agreement the Council will be making two significant findings, First
prepayment of the property owner’s fair share represents an adequate financing guan
under the Growth Management Program. This finding is based on the special case assum1
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P Page Two of Agenda Bill No. /z Ada
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that a CFD is in the formation process, and it is the CFD which actually provides the
financing guarantee. And second, the Council will find that the projects do not create a ma
impact on the existing circulation facilities. The City Engineer agrees with these findings
they relate to these projects.
FISCAL IMPACT:
The funding of the Rancho Santa Fe and Olivenhain Road projects has been a major conc
for the City for many years. The successful development of a financing plan that will sup1
the improvements to these roads through a phased development program and a CFD un
Council Policy 38 is a significant accomplishment. The circulation projects will cost ak
$37 million to construct (based on a 1993-94 estimate), and will affect the development of
2,400 acres of land in southeast Carlsbad.
The City’s obligation for improvements is limited to the contribution of $6 million from C
No. 1 to these projects. The contribution will be timed to avoid conflict with other projl
funded by CFD No. 1. The City has participated in funding some of the CFD Nc
formation costs including limited engineering and financial consultant fees. Council
previously appropriated funds to cover these costs. The City will be reimbursed for t€
costs from CFD No. 2 when funds become available.
In prior prepayment agreements the Council has allowed California Pacific Homes and Cei
to prepay $2.2 million for 213 units to be constructed in Zone 11. The two Centex proj
addressed by this agenda bill represent an additional 363 units, and a prepayment of S
million. The table below summarizes the existing and proposed prepayment agreements
Agreements Approved
Verde, CT-89-18
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Page No. Three of Agenda Bill No. /< ad&
EXHIBITS:
1. Resolution No. 'sa%horizing the Mayor to execute Prepayment Agreemen
CT 85-10.
2. Prepayment agreement between the City of Carlsbad and Centex Real E:
Corporation - CT 85-10 - Rice Property
Resolution No .Yipa'authorizing the Mayor to execute Prepayment Agreemen 3. CT 89-18.
4. Prepayment Agreement between the City of Carlsbad and Centex Real E
Corporation - CT 89-18 - Rancho Verde.
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RESOLUTION NO. 95-220
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFOKVIA, AUTHORZZLVG THE MAYOR TO
EXECUTE A PREPAYMENT AGREMENT BETWEEN THE CITY OF
CARLSBAD AND CENTLX REAL ESTATE CORPORATION FOR CT-
85- 10
WHEREAS, the City of Carlsbad City Council has required that the funding
Rancho Santa Fe Road and Olivenhain Road (Project) must be guaranteed before x
development takes place in the area bounded by Local Facilities Management Zones 11 ar
12, and portions of Zone 6; and
WHEREAS, the Council had directed City staff to proceed with the formation of
Community Facilities District (CFD No. 2) to finance the Project; and
WHEREAS, although the Council anticipates that CFD No. 2 will be formed in t
future, the Council is dlling to consider alternative financing proposals d-ng the p&od h
the present to the formation date of CFD No. 2; and
WHEREAS, such interim financing program will only be considered as long as I
Council finds that the formation of CFD No. 2 is proceeding in a reasonable manner, hn
WHEREAS, the Council finds that the formation of CFD No. 2 is proceeding ir
reasonable manner, and
WHEREAS, the Council finds that the guarantee provisions related to the Project rr
be met through an interim financing program using an agreement between certain prop
owners and the City whereby the,property owner agrees to prepay hidher fair share of cc
associated with the Project; and
WHEREAS, Centex Real Estate Corporation (Centex) intends to build a 189-1
development in Local Facilities Management Zone 1 1, known as Rice Property CT 85- 10;
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 tin-
the Centex development is allowed to proceed; and
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WHEREAS, the Council finds that Centex may enter into the attached Agreemei
Pay Fair Share (Exhibit A) in satisfaction of their obligation under the Project Gnan
conditions.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Cads
California, as follows:
1.
2. That the form of the PETITION, WAIVER AND CONSENT
CREATION OF A COMMUNITY FACILITIES DISTRICT 1
AGREEMENT TO PAY FAIR SHARE, Exhibit A attached here to, is he
That the above recitations are true and correct.
approved.
3. That the Mayor is hereby authorized to enter into the agreement shov
Exhibit "A" with Centex.
The amount that is due and payable to the City by Centex prior tc
recordation of a final map and shall be equal to $1,937,250 (189 units @ $10,250 per 1
with additional payments to be made to the City as described in the attached agree]
Centex may, at its discretion, present the City with final maps, as approved by the
Engineer and may pay the City for the proportional share of the amount due, as describ
the attached agreement.
4.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City @oun
the 8th day of AUGUST , 1995, by the following vote, to wit:
AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, E
NOES: None
ABSENT: None
ATTEST:
NZ, City Clerk
KAREN R. KUNDTZ, Assistant City Clerk
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RECORDING REQUESTED BY AND )
a WHEN RECORDED MAIL TO: )
City Clerk )
CITY OF CARLSBAD )
1200 Carlsbad Village Drive )
Carlsbad, CA 92008 1
SPACE ABOVE THIS LINE FOR RECORDER'?
Parcel Nos. 264-010-07
PETITION, WAIVER AND CONSENT TO CREATION
OF A COMMUNITY FACILITIES DISTRICT
AND AGREEMENT TO PAY FAIR SHARE
CT 85-10 RICE PROPERTY
WHEREAS, the undersigned Property Owner at this time is processing for develc
within the City of Carlsbad (hereinafter referred to as Tity") a development project
and identified as Tentative Tract Map CT 85-10 (hereinafter referred to as the "Project
WHEREAS, the legal description for Project is shown on Exhibit "B" attached
and
WHEREAS, City has determined this Project to be located within the boundarj
proposed Community Facilities District known as Community Facilities District N
Rancho Santa Fe and Olivenhain Road (hereinafter referred to as "District"); and
WHEREAS, District is intended to be formed to finance those improvements ge
described in Section 1 herein; and
WHEREAS, Property Owner desires to proceed with processing prior to the for
of District; and
WHEREAS, the Local Facilities Management Plans for Zone 11 requires the gu
of construction of the segments of Rancho Sank Fe Road and Olivenhain Road descr
Section 1 herein prior to the recordation of any final maps or the issuance of building
within the zones; and
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WHEREAS, Condition Nos. 67, 68 and 70 of Tentative Tract Map CT
("Conditions") require, among other things, that the Property Owner provide f
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cunstructiun of certain public improvements including sections of Rancho Sanh Fe Ro
Olivenhain Road; and
WEREAS, compliance with the applicable Local Facilities Management P1;
Zone 11 and tentative map conditions is a condition of approval for the final map
Project; and
WHEREAS, the City and Property Owner desire to agree to an alternate me1
financing the improvements described in Section 1 herein that will allow Property 01
discharge its fair share obligation for said improvements in lieu of participation in Distrj
WHEREAS, the City Council agrees that Property Owner, upon entering ir
agreement and upon payment of the fair share described herein, has met the requirerr
forth in the Local Facilities Management Plan for Local Facilities Zone 11, and
Conditions to provide a financial guarantee for the construction of those improv
described in Section 1 below; and
WHEREAS, Property Owner voluntarily enters into this agreement; and
WHEREAS, the City Council has determined that due to the size of the PI
development, there will be no major impact on the circulation system at the present
development of the Project is allowed to proceed with sufficient financial guarantees foi
construction of Property Owner's fair share of the circulation improvements;
NOW, THEREFORE, in consideration of proceeding with the processing of I
the undersigned Property Owner hereby agrees and certifies to the following:
1. Property Owner hereby petitions the City for the initiation of proceedi
the formation of District which will cause the construction and installation and/or finar
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the following improvements which are generally described as follows: -
a) Rancho Santa Fe Road North Phase 1 (RSF No. 1) La Costa Avenue
of Mahr Reservoir
b) Olivenhain Road Widening, and intersection improvements at Olivenhi
El Camino Real
c) Rancho Santa Fe Road North Phase 2 (RSF No. 2) Phase 1 End to h
Drive
d) Rancho Santa Fe Road South (RSF So.) (Assumes Secondary Ar
Encinitas City Boundarv to Olivenhain Road Full Improvements)
2. The cost of construction, engineering, legal and other incidental expens
be funded by the District.
3. Property Owner acknowledges its right to notice of and participation
phases of formation under the "Mello-Roos Community Facilities Act of 1982," ex
waives the proceedings required and all limitations contained in Title 5, Division 2, (
2.5 of the California Government Code and nonetheless with full knowledge of such
completely and forever waives such rights. Specifically, Property Owner hereby con!
the proceedings and waives any right to protest the formation of the District and the o
of the improvements under applicable California statutes and consents to and SI
formation of said District. The City shall exclude Property Owner from the District bo
map if, prior to the adoption of a Resolution of Intention by the City Council to for
District, Property Owner has entered into this agreement and has paid to the City all a
due as described herein.
4. a) Property Owner agrees to pay to City its fair share for the improw
described in Paragraph 1.
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b) Said payment shall be made in the manner described in Exhibit "A" Rc
Method for Determhl'ng Fair Share Obljgatton Rancho Santa Fe and 02ivenhain Road:
is incorporated herein by reference.
c) The amount of Property Owner's fair share will be conclusively dete
by the City Council in the manner described in Exhibit "A" attached hereto.
d) Payment by Property Owner of its fair share of improvement c
determined by City Council and set forth herein will satisfy its obligations for the const
of the improvements described in Paragraph 1, as required by the Local Facilities Mana;
Plan for Zone 11 and related Conditions, subject to adjustment as described in Paragr
e) Alternatively, if the District is formed and Project is included wi
Property Owner's obligations to pay its fair share pursuant to the agreement shall be si
upon payment of all taxes imposed, established and payable to said District.
5. Property Owner acknowledges that this agreement to pay its fair sha
participate in the financing of improvements is voluntary and that without this agn
Property Owner would be precluded from obtaining final map approvals or building ani
development permits under the provisions of the General Plan, Chapter 21.90 of the Ci
Municipal Code, applicable zone plan, financing plans and related documents 1
satisfactory financing program had been developed to fund the construction 1
improvements described in Section 1.
6. Property Owner hereby waives his right to challenge the amount, establi:
or imposition of said fair share and further waives any rights to pay said fair share
protest.
7. This agreement does not affect, in any way whatsoever, the obligat
Property Owner to pay any other fees or assessments associated with Property 0
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development. Nor does this agreement relieve Property Owner from providing other
facilities required under conditions of the Local Facilities Management Plan for Zone
placed upon tentative map CT 85-10 by the City.
8. Property Owner agrees that payment of its fair share is not a fee and waik
and all rights to notice of or challenges to the establishment or imposition of said fair SI
a fee under provisions of Government Code sections 66000 et sea., or any successor or
statutes.
9. a) If the District is formed subsequent to the payment by Property Owner
fair share pursuant to this agreement, Property Owner’s financial obligation slr
recalculated using the taxing formula established for the District. If that obligation is di
from the amount previously paid by Property Owner to City, City shall refund any exc
Property Owner will pay to City any additional amount due (Shortfall).
b) Any refund shall be made from funds available within District upon 1
formation and shall not be an obligation of City’s General Fund or other revenue SOUI
c) In the event that insufficient funds are available from District’s rest
Property Owners shall be reimbursed in the order in which funds were deposited with
soon as sufficient funds become available, as determined by the City Council, throL
payment of one-time taxes or annual undeveloped land taxes to the District. The Citi
required to establish an undeveloped land tax within the District to provide such refun
d) No reimbursement is required until the City Council determines that su
funds are available. Any refund to Property Owner shall not include interest.
e) If a shortfall exists, Property Owner shall be notified of the amount (
Shortfall by the Finance Director via certified mail. The amount of said Shortfall shall
and payable to City thirty (30) days after the mailing of such notice.
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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 thirl
days of notice of said Shortfall by the Finance Director, City may deny the issuance of bi
permits and/or take any other action allowed by law to deny further development of pi
subject to this agreement and to collect such Shortfall including, but not limited to, a
the property. City’s recordation of a lien shall not affect its ability to recover the Shon
other legal means concurrently, but no double recovery will be allowed. The cost (
collection shall be an obligation of Property Owner and shall be added to the amount
Shortfall payment due City.
h) Any payment received by the City under this agreement shall be depoi
a special fund and may only be used to fund the construction of the facilities described
Upon the formation of a CFD to fund these same facilities any amount remaining in the
fund may be transferred to the CFD Fund, at the discretion of the Finance Director.
10. If the District has not been formed for any reason by January 1, 1999, the a
payable by Property Owner under this agreement shall represent Property Owner’s fai
cost for provision of those facilities described in Paragraph 1 and no additional fee, assei
or charge will be due from or reimbursement due to Property Owner.
11. Compliance with this agreement will be accepted by City as an alternate
method described in the current Local Facilities Management Plan for Zone 11 for fi~
the improvements described in Paragraph 1. This agreement does not require City 1
building permits or other development permits or grant approvals or relieve Property
of the obligation to comply with all applicable provisions of law, including but not lim
Carlsbad Municipal Code Titles 18, 19, 20 and 21.
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12. Compliance with the provisions of this agreement is a condition of all
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discretionary approvals for the Project. If Property Owner does not comply with the pro!
of this agreement, approval of the Project will not be consistent with the General Pk
Growth Management Program, the Local Facilities Management Plan or the app
financing plan for Zone 11 and all subsequent discretionary approvals and permits ’
Project shall be withheld by City.
13. In addition, the City will not approve any pending final maps, issue gi
building or other development permits or take any discretionary action until the PI
Owner has complied with the terms of this agreement due to be satisfied at the tirn
approval is requested.
14. The City may, at its discretion, elect to pursue any remedy, legal or eq
against Property Owner and Property Owner’s successors, heirs, assigns, and transferee
the exception of owners of individual lots for which building permits have been issi
secure compliance with this agreement.
15. City shall not, nor shall any officer or employee of City, be liable or resp
for any loss or damage incurred by Property Owner or any successor or assign of P
Owner, or by any occupant in Property Owner’s buildings, as a result of the exercise
remedies provided to City in this agreement. Property Owner agrees to indemnify City
liabilities incurred by City as a result of City’s exercise of these remedies.
16. This agreement and the covenants contained herein shall be binding upon an
to the benefit of the successors, heirs, assigns and transferees of Property Owner and C
shall run with the real property and create an equitable servitude upon the real proper
17. All notices provided for under this agreement shall be in writing and s
delivered in person or served by certified mail postage prepaid. Delivery of notice to P
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Owner shall be presumed to have been made on the date of mailing regardless of re(
Property Owner. Notices required to be given to Property Owner shall be addre
follows:
1
Mark Rohrlick, Vice President
Centex Real Estate Corporation
5962 La Place Court
Carlsbad, CA 92008
Suite 250
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 would req
notice delivered hereunder to be directed to another party.
18. This agreement shall be recorded but shall not create a lien or security in
the property.
19. The undersigned further states, under penalty of perjury, that he is the c
the property as described herein, or an authorized agent of the owner, and has the 2
to execute this document, including the binding authorizations herein.
Ill
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Executed this /pday of
PROPERTY OWNER
CENTEX REAL ESTATE, a Nevada Corporation
(Name of Property Owner)
CITY OF CARLSBAD, a municipal
Cali
By:
CLAUDE A LEWIS, Mayor
brh J&bl3L
(print name here)
)
(print name here)
731Y/,S/Cd .~cE /&/A&
(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 sign for corporal
If only one officer signs, the corporation must attach a resolution certified by the secreta
assistant secretary under corporate seal empowering that officer to bind the corporation.
APPROVED AS TO FORM:
RONALD K. BALL
City
BY LQ*&Ze-
aqr;tetrflity Attorney 8. I S- '?re
c
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r 0 I) EXHIBI1:
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RATE AND METHOD FOR DETERMINING
FAIR SHARE OBLIGATION
RANCHO SANTA FE ROAD AND OLIVENHAIN ROAD
The City Council shall use the following rate and method for determining the fair
obligation for funding the construction of Rancho Santa Fe Road and Olivenhain Ro
is done as part of an agreement titled PETITION, WAIVER AND CONSENT TO CREA
OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR S’
(Agreement) which has been voluntarily entered into by the City of Carlsbad and (
property owners wishing to proceed with the development of their property in advance
creation of Community Facilities District No. 2 (CFD No. 2). It is the City and px
owners intent to form CFD No. 2 to provide funding for those improvements described
the above referenced agreement.
The following rate and method shall be used to determine the fair share and amount dut
any property owner wishing to take advantage of this alternate funding mechanism.
Basis for Cost Allocation
The basis for allocation of costs to property conditioned with the financing of the improve
described in the Agreement shall be the Equivalent Dwelling Unit (EDU) which is defi
follows for residential developments:
from prupaty conditioned to participate in the financing of these facilities. This cdci
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 determined by thc
Engineer based on the most recent final map submitted to the City for approval.
The EDU determination for non-residential development shall be made by the City Eni
when such a determination is requested by the property owner. The City Engineer may rt
additional information from any property owner as may be necessary to mak
determination. The City Engineer is not required to make a determination on the numl
EDUs for any project until adequate information is available.
The City Engineer’s determination shall be submitted to the City Council in the staff j
accompanying the Agreement. The City Council shall make the final determination t
number of EDUs to be used in computing the fair share obligation for any project.
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7 0 0 Fair Share Amount and Method of Payment
The City shall collect $13,290 for each EDU as determined by the City Council. This a
shall be collected in two separate payments, $10,250 per EDU to be paid as described 1
and $3,040 per EDU at the time a building permit is issued. The manner of payment i
fully described below.
The Property Owner shall pay their fair share to the City of Carlsbad in the following m
1) a) Because the Property Owner intends to divide the Project into phases, requir approval of multiple final maps, the Property Owner shall, upon execution
agreement, provide the City with a Letter of Credit from a financial ins
acceptable to the Finance Director, for the amount shown on the table belo any amount paid under the agreement.
Following execution of the Agreement to Pay Fair Share, and prior to the a1
of a final map by the City Council, the Property Owner shall pay to the (
amount equal to the number of EDUs included in said final map, as determj
the City Engineer, times $10,250 for all units included on the subject fin2
If the City Council determines that the City Engineer’s calculation of the r
of EDUs included on the final map is in error, the Council shall direct tl
Engineer to amend his calculations and direct staff to bring the final map b
approval when such correction has been made. The Property Owner shal
the right to phase the approval of final maps as allowed by the City Engine
shall only be required to pay the obligation for those units receiving final ap
The Property Owner shall pay the amounts due for each successive phase 1
the approval of each final map. The Finance Director may authorize a rec
in the amount of the Letter of Credit following such subsequent payments
b)
c)
Computation of Fair Share Obligation
Rice Property CT 85-10
2) Prior to the issuance of a building permit by the City the property owners shall pay to
an amount equaI to the number of EDUs included on such building permit, as deterrr
the City Engineer, times $3,040.
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3) a) If the Property Owner has already obtained a final map for units conditioned M
financing of Rancho Santa Fe and Olivenhain Road, the Property Owner shall pa!
City the amount equal to $10,250 times the number of EDUs included on such fir
as determined by the City Council prior to entering into this agreement
Prior to the issuance of a building permit by the City the Property Owner shall pa:
determined by the City Engineer, times $3,040.
b) City an amount equal to the number of EDUs included on such building per
4) The City Engineer shall prepare a report detailing the calculation of the number 01
associated with this agreement. Said report shall be made available to the City Cour
Property Owner for review.
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EXHIBI1 0 a -' 1
LEGAL DESCRIPTION
CT 85-10
RICE PROPERTY
THE EASTERLY HALF OF LOT 14 AND A PORTION OF THE
WESTERLY HALF OF LOT 14. AND THE SOUTH 60 FEET OF
THE WEST HALF OF LOT 14 OF RANCHO LAS ENCINITAS
IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO,
STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF
NO 848, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, JUNE 27, 1898.
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RESOLUTION NO. 95-221
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EXECUTE A PWAYMENT AGREEMENT BETWEEN THE CITY OF
CARLSBAD AND CENTEX REAL ESTATE CORPORATION FOR CT
CARLSBAD, CALIFOW-IA, AUTHORIZING THE MAYOR TO
89- 1 a
WHEREAS, the City of Carlsbad City Council has required that the funding
Rancho Santa Fe Road and Olivenhain Road (Project) must be guaranteed before .
development takes place in the area bounded by Local Facilities Management Zones I1 i
12, and portions of Zone 6; and
WHEREAS, the Council had directed City staff to proceed with the formation c
Community Facilities District (CFD No. 2) to finance the Project; and
WHEREAS, although the Council anticipates that CFD No. 2 will be formgd in
future, the Council is willing to consider alternative financing proposals during the period fr
the present to the formation date of CFD No. 2; and
WHEREAS, such interim financing program will only be considered as long as
Council finds that the formation of CFD No. 2 is proceeding in a reasonable manner; ar
WHEREAS, the Council finds that the formation of CFD No. 2 is proceeding i
reasonable manner, and
WHEREAS, the Council finds that the guarantee provisions related to &e Project T
be met through an interim financing program using an agreement between certain prop'
owners and the City whereby the property owner agrees to prepay hidher fair share of ci
associated with the Project; and
WHEREAS, Centex Real Estate Corporation (Centex) intends to build a 174~
development in Local Fdlities Management Zone 11, known as Rancho Verde CT 89-
and
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 tin-
the Centex development is allowed to proceed; and
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WHEREAS, the Council finds that Centex may enter into the attached Agreemen
Pay Fair Share (Exhibit A) in satisfaction of their obligation under the Project financ
conditions.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Carlsk
California, as follows:
1.
2. That the form of the PETITION, WAIVER AND CONSENT
That the above recitations are true and correct.
CREATION OF A COMMUNITY FACILITIES DISTRICT P
AGREEMENT TO PAY FAIR SHARE, Exhibit A attached here to, is he
approved.
That the Mayor is hereby authorized to enter into the agreement show
Exhibit "A" with Centex.
The amount that is due and payable to the City by Centex prior to
3.
4.
recordation of a final map and shall be equal to $1,783,500 (174 units Q $10,250 per u
with additional payments to be made to the City as described in the attached agreer
Centex may, at its discretion, present the City with final maps, as approved by the
Engineer and may pay the City for the proportional share of the amount due, as describ
the attached agreement.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Counc
the 8th day of AUGUST , 1995, by the following vote, to wit:
AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Ha
NOES: None
ABSENT: None
#I ATTEST:
28 NZ, City Clerk
KAREN R. KUNDTZ, Assistant City Clerk
0 0 -.
RECORDING REQUESTED BY AND )
WHEN RECORDED MAIL TO: 1
City Clerk 1
CITY OF CARLSBAD 1
1200 Carlsbad Village Drive 1
Carlsbad, CA 92008 )
SPACE ABOVE THIS LINE FOR RECORDER'S
Parcel Nos. 264-010-21. 22, 23 & 25
PETITION7 WAIVER AND CONSENT TO CREATION
OF A COMMUNITY FACILITIES DISTRICT
AND AGREEMENT TO PAY FAIR SHARE
CT 89-18 RANCHO VERDE
WHEREAS, the undersigned Property Owner at this time is processing for develc
within the City of Carlsbad (hereinafter referred to as "City") a development project
and identified as Tentative Tract Map CT 89-18 (hereinafter referred to as the "Project
WHEREAS, the legal description for Project is shown on Exhibit "B" attached
and
WHEREAS, City has determined this Project to be located within the boundari
proposed Community Facilities District known as Community Facilities District r\;
Rancho Santa Fe and Olivenhain Road (hereinafter referred to as "District"); and
WHEREAS, District is intended to be formed to finance those improvements ge
described in Section 1 herein; and
WHEREAS, Property Owner desires to proceed with processing prior to the fo
of District; and
WHEREAS, the Local Facilities Management Plans for Zone 11 requires the gi
of construction of the segments of Rancho Santa Fe Road and Olivenhain Road desc
Section 1 herein prior to the recordation of any final maps or the issuance of building
within the zones; and
rancho verde 1/25/95
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WHEREAS, Condition No. 9 of Tentative Tract Map CT 89-18, and Conditio
1 of Council Resolution No. 90-274 approving CT 89-18 ("Conditions") require th
Property Owner provide for the construction of certain public improvements including se
of Rancho Santa Fe Road and Olivenhain Road; and
WHEREAS, compliance with the applicable Local Facilities Management Pla
Zone 11 and tentative map conditions is a condition of approval for the final map f
Project; and
WHEREAS, the City and Property Owner desire to agree to an alternate met1
financing the improvements described in Section 1 herein that will allow Property Ow
discharge its fair share obligation for said improvements in lieu of participation in Distri
WHEREAS, the City Council agrees that Property Owner, upon entering in
agreement and upon payment of the fair share described herein, has met the requirem
forth in the Local Facilities Management Plan for Local Facilities Zone 11, and
Conditions to provide a financial guarantee for the construction of those improvl
described in Section 1 below; and
WHEREAS, Property Owner voluntarily enters into this agreement; and
WHEREAS, the City Council has determined that due to the size of the pr
development, there will be no major impact on the circulation system at the present
development of the Project is allowed to proceed with sufficient financial guarantees fo
construction of Property Owner's fair share of the circulation improvements;
NOW, THEREFORE, in consideration of proceeding with the processing of 1
the undersigned Property Owner hereby agrees and certifies to the following:
1. Property Owner hereby petitions the City for the initiation of proceedj
the formation of District which will cause the construction and installation and/or finar
rancho verde 7/25/95
2
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the following improvements which are generally described as follows:
a) Rancho Santa Fe Road North Phase 1 (RSF No. 1) La Costa Avenue
of Mahr Reservoir
b) Olivenhain Road Widening. and intersection improvements at Olivenhs
El Camino Real
c) Rancho Santa Fe Road North Phase 2 (RSF No. 2) Phase 1 End to N
Drive
d) Rancho Santa Fe Road South (RSF So.) (Assumes Secondary Arl
Encinitas City Boundary to Olivenhain Road Full Improvements)
2. The cost of construction, engineering, legal and other incidental expenc
be funded by the District.
3. Property Owner acknowledges its right to notice of and participation
phases of formation under the "Mello-Roos Community Facilities Act of 1982," ex
waives the proceedings required and dl limitations contained in Title 5, Division 2, (
2.5 of the California Government Code and nonetheless with full knowledge of such
completely and forever waives such rights. Specifically, Property Owner hereby con:
the proceedings and waives any right to protest the formation of the District and the o
of the improvements under applicable California statutes and consents to and s
formation of said District. The City shall exclude Property Owner from the District bc
map if, prior to the adoption of a Resolution of Intention by the City Council to fo
District, Property Owner has entered into this agreement and has paid to the City all 5
due as described herein.
4. a) Property Owner agrees to pay to City its fair share for the improi
described in Paragraph 1.
rancho verde 7/25/95
3
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b) Said payment shall be made in the manner described in Exhibit "A" Ra,
Method for Determining Fair Share Obligation Rancho Santa Fe and Olivenhain Road,
is incorporated herein by reference.
c) The amount of Property Owner's fair share will be conclusively deter
by the City Council in the manner described in Exhibit "A" attached hereto.
d) Payment by Property Owner of its fair share of improvement cc
determined by City Council and set forth herein will satisfy its obligations for the constr
of the improvements described in Paragraph 1, as required by the Local Facilities Manag
Plan for Zone 11 and related Conditions, subject to adjustment as described in Paragri-
e) Alternatively, if the District is formed and Project is included wil
Property Owner's obligations to pay its fair share pursuant to the agreement shall be si
upon payment of all taxes imposed, established and payable to said District.
5. Property Owner acknowledges that this agreement to pay its fair sha
participate in the financing of improvements is voluntary and that without this agrl
Property Owner would be precluded from obtaining final map approvals or building an
development permits under the provisions of the General Plan, Chapter 21.90 of the C
Municipal Code, applicable zone plan, financing plans and related documents
satisfactory financing program had been developed to fund the construction
improvements described in Section 1.
6. Property Owner hereby waives his right to challenge the amount, establ:
or imposition of said fair share and further waives any rights to pay said fair shar
protest,
7. This agreement does not affect, in any way whatsoever, the obligz
Property Owner to pay any other fees or assessments associated with Property (
rancho verde 7/25/95
4
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development. Nor does this agreement relieve Property Owner from providing other
facilities required under conditions of the Local Facilities Management Plan for Zone
placed upon tentative map CT 89-18 by the City.
8. Property Owner agrees that payment of its fair share is not a fee and waih
and all rights to notice of or challenges to the establishment or imposition of said fair SI
a fee under provisions of Government Code sections 66000 et seu., or any successor or
statutes.
9. a) If the District is formed subsequent to the payment by Property Owner
fair share pursuant to this agreement, Property Owner’s financial obligation SI
recalculated using the taxing formula established for the District. If that obligation is dj
from the amount previously paid by Property Owner to City, City shall refund any exc
Property Owner will pay to City any additional amount due (Shortfall).
b) Any refund shall be made from funds available within District upon 1
formation and shall not be an obligation of City’s General Fund or other revenue soul
c) In the event that insufficient funds are available from District’s res1
Property Owners shall be reimbursed in the order in which funds were deposited with
soon as sufficient funds become available, as determined by the City Council, throi
payment of one-time taxes or annual undeveloped land taxes to the District. The Cip
required to establish an undeveloped land tax within the District to provide such refur
d) No reimbursement is required until the City Council determines that su
funds are available. Any refund to Property Owner shall not include interest.
e) If a shortfall exists, Property Owner shall be notified of the amount
Shortfall by the Finance Director via certified mail. The amount of said Shortfall shall
and payable to City thirty (30) days after the mailing of such notice.
rancho verde 7/25/95
5
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f) The computation of the amount of any Shortfall shall not include ii
charges.
g) If no payment of the Shortfall is made by Property Owner within thifl
days of notice of said Shortfall by the Finance Director, City may deny the issuance of bi
permits and/or take any other action allowed by law to deny further development of PI
subject to this agreement and to collect such Shortfall including, but not limited to, a 1
the property. City’s recordation of a lien shall not affect its ability to recover the Short
other legal means concurrently, but no double recovery will be allowed. The cost c
collection shall be an obligation of Property Owner and shall be added to the amount
Shortfall payment due City.
h) Any payment received by the City under this agreement shall be depoc
a special fund and may only be used to fund the construction of the facilities described I
Upon the formation of a CFD to fund these same facilities any amount remaining in the
fund may be transferred to the CFD Fund, at the discretion of the Finance Director.
10. If the District has not been formed for any reason by January 1, 1999, the a
payable by Property Owner under this agreement shall represent Property Owner’s fai
cost for provision of those facilities described in Paragraph 1 and no additional fee, assei
or charge will be due from or reimbursement due to Property Owner.
11. Compliance with this agreement will be accepted by City as an alternate
method described in the current Local Facilities Management Plan for Zone I1 for fii
the improvements described in Paragraph 1. This agreement does not require City 1
building permits or other development permits or grant approvals or relieve Property
of the obligation to comply with all applicable provisions of law, including but not lim
Carlsbad Municipal Code Titles 18, 19, 20 and 21.
rancho verde 7/25/95
6
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12. Compliance with the provisions of this agreement is a condition of all
discretionary approvals for the Project. If Property Owner does not comply with the pro7
of this agreement, approval of the Project will not be consistent with the General Pk
Growth Management Program, the Local Facilities Management Plan or the app
financing plan for Zone 11 and all subsequent discretionary approvals and permits j
Project shall be withheld by City.
13. In addition, the City will not approve any pending final maps, issue gi
building or other development permits or take any discretionary action until the PI
Owner has complied with the terms of this agreement due to be satisfied at the tim
approval is requested.
14. The City may, at its discretion, elect to pursue any remedy, legal or eq
against Property Owner and Property Owner’s successors, heirs, assigns, and transferee
the exception of owners of individual lots for which building permits have been issi
secure compliance with this agreement.
15. City shall not, nor shall any officer or employee of City, be liable or resF
for any loss or damage incurred by Property Owner or any successor or assign of P
Owner, or by any occupant in Property Owner’s buildings, as a result of the exercise
remedies provided to City in this agreement. Property Owner agrees to indemnify City
liabilities incurred by City as a result of City’s exercise of these remedies.
16. This agreement and the covenants contained herein shall be binding upon ar
to the benefit of the successors, heirs, assigns and transferees of Property Owner and <
shall run with the real property and create an equitable servitude upon the real propel
17. All notices provided for under this agreement shall be in writing and I
delivered in person or served by certified mail postage prepaid. Delivery of notice to E
rancho verde 7/25/95
7
0 Owner shall be presumed to have been made on the date of mailirig regardless of re(
Property Owner. Notices required to be given to Property Owner shall be addrf
follows:
Mark Rohrlick, Vice President
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 would req
notice delivered hereunder to be directed to another party.
18. This agreement shall be recorded but shall not create a lien or security in
the property.
19. The undersigned further states, under penalty of perjury, that he is the c
the property as described herein, or an authorized agent of the owner, and has the a
to execute this document, including the binding authorizations herein.
Ill
I//
JJI
Ill
I /I
I /I
I I/
Ill c
rice property 7/25/95
8
0
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6 Executed this // day of k
PROPERTY OWNER
CENTEX REAL ESTATE, a Nevada Corporation
(Name of Property Owner)
CITY OF CARLSBAD, a municipal
Cal
By:
CLAUDE A LEWIS, Mayor
'-j3pl/aL45 Jar,&$&
(print name here)
(print name here)
'nlVIsd 68 /c1m,Mh-
(title and organization of signatory)
(Notarial acknowledgment of executiori by PWPERTY OWNER must be attached.)
(President or vice-president and secretary or assistant secretary must sign for corpoi
If only one officer signs, the corporation must attach a resolution certified by the secrt
assistant secretary under corporate seal empowering that officer to bind the corporatic
APPROVED AS TO FORM:
RONALD R. BALL
City t ney
BY LQ*L
DepiyCity Attorney 8./s;%,
4
rancho verde 7/25/95
9
0 0 EXHIBIT
-1
--
RATE AND METHOD FOR DETERMINING
FAIR SHARE OBLIGATION
RANCHO SANTA FE ROAD AND OLIVENHAIN ROAD
The City Council shall use the following rate and method for determining the fair
obligation for funding the construction of Rancho Santa Fe Road and Olivenhain Roz
from 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 CREA
OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR SI
(Agreement) which has been voluntarily entered into by the City of Carlsbad and (
creation of Community Facilities District No. 2 (CFD No, 2). It is the City and pi
owners intent to form CFD No. 2 to provide funding for those improvements described
the above referenced agreement.
The following rate and method shall be used to determine the fair share and amount du
any property owner wishing to take advantage of this alternate funding mechanism.
Basis for Cost Allocation
The basis for allocation of costs to property conditioned with the financing of the improv
described in the Agreement shall be the Equivalent Dwelling Unit (EDU) which is def
follows for residential developments:
property owners wishing to proceed with the development of their property in advance
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 determined by t
Engineer based on the most recent final map submitted to the City for approval.
The EDU determination for non-residential development shall be made by the City E
when such a determination is requested by the property owner. The City Engineer may
additional information from any property owner as may be necessary to m;
determination. The City Engineer is not required to make a determination on the nu
EDUs for any project until adequate information is available.
The City Engineer’s determination shall be submitted to the City Council in the staf
accompanying the Agreement. The City Council shall make the Gnal determinatioi
number of EDUs to be used in computing the fair share obligation for any project.
rancho verde 7/25/95
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-. Fair Share Amount and Method of Payment
The City shall collect $13,290 for each EDU as determined by the City Council. This i
shall be collected in two separate payments, $10,250 per EDU to be paid as described
and $3,040 per EDU at the time a building permit is issued. The manner of payment j
fully described below.
The Property Owner shall pay their fair share to the City of Carlsbad in the following n
1) Because the Property Owner intends to divide the Project into phases, requii
approval of multiple final maps, the Property Owner shall, upon execution
agreement, provide the City with a Letter of Credit from a financial ins
acceptable to the Finance Director, for the amount shown on the table belc
any amount paid under the agreement.
a)
b) Following execution of the Agreement to Pay Fair Share, and prior to the a
of a final map by the City Council, the Property Owner shall pay to the
amount equal to the number of EDUs included in said final map, as determ
the City Engineer, times $10,250 for all units included on the subject fin,
If the City Council determines that the City Engineer’s calculation of the
of EDUs included on the final map is in error, the Council shall direct t
Engineer to amend his calculations and direct staff to bring the final map t
approval when such correction has been made. The Property Owner shd
the right to phase the approval of final maps as allowed by the City Enginr
shall only be required to pay the obligation for those units receiving final al:
c) The Property Owner shall pay the amounts due for each successive phase
the approval of each final map. The Finance Director may authorize a re
in the amount of the Letter of Credit following such subsequent payment:
Computation of Fair Share Obligation
Rancho Verde CT 89-18
2) Prior to the issuance of a building permit by the City the property owners shall pay to
an amount equal to the number of EDUs included on such building permit, as deter1
the City Engineer, times $3,040.
rancho verde 1/25/95
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3) a) If the Property Owner has already obtained a final map for units conditioned v
financing of Rancho Santa Fe and Olivenhain Road, the Property Owner shall pa:
City the amount equal to $10,250 times the number of EDUs included on such fii
as determined by the City Council prior to entering into this agreement
Prior to the issuance of a building permit by the City the Property Owner shall pa
City an amount equal to the number of EDUs included on such building per
determined by the City Engineer, times $3,040.
b)
4) The City Engineer shall prepare a report detailing the calculation of the number 01
associated with this agreement. Said report shall be made available to the City Coui
Property Owner for review.
rancho verde 7/25/95
EXHIBIl 0 0 .’ I
4-
LEGAL DESCRIPTION
CT 89-18
RANCHOVERDE
PORTIONS OF LOTS 8, 9, AND 15 OF THE SUBDIVISION OF
RANCHO LAS ENCINITAS IN THE CITY OF CARLSBAD,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO MAP THEREOF NO. 848, FILED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY, JUNE 27, 1898.
rancho verde 7/25/95
T
CENTEX HOMES
August 11,1995
Aletha L. Rautenkrauz
City Clerk
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
RE: Prepavment Agreements: Rice ProDertv/Rancho Verde
Dear Ms. Rautenla9nz:
Returned herewith are two original sets of the Repayment Agreements for the above-
referenced projects. All four originals have been signed and notarized as requested.
Sincerely,
CENTEX HOMES San Diego Division
Maricela Camdell 0
for Mark Rohrlick, Vice Resident
L
/mgc
enclosures
August 9, 1995
Mark Rohrlick, Vice President
CENTEX HOMES
Suite 250
5962 La Place Court
Carlsbad, CA 92008
RE: PREPAYMENT AGREEMENTS
RICE PROPERTIES / RANCHO VERDE
Dear Mark:
Enclosed with this letter are two original sets of prepayment agreements for the above projects,
which were approved at last night's Council meeting.
Please execute all four sets and return to the City Clerk at the following address:
Aletha L. Rautenkranz
City Clerk
CITY OF CARLSBAD
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Please note that notarial acknowledgement of execution by Property Owner must be attached.
After all sets have been signed and notarized, an original set for each project will be forwarded
to your office for your records.
Jim will be on vacation from Friday, August 11, - Friday, August 25, 1995, gnd this Friday is my
last day. If you have questions or need assistance, please contact Lisa Hildabrand, Finance
Director, at 434-2867. Otherwise, please just forward the signed and notarized sets to the City
Clerk.
Thanks for your assistance!
Sincerely,
TERI GE~ENT
Administrative Secretary
tlg
c: City Clerk
1200 Carlsbad Village Drive - Carlsbad. CA 92008-1989 * (619) 434-2821 - FAX (619) 720-9461 @