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HomeMy WebLinkAbout2000-02-08; City Council; 15619; Infrastructure Financing DistrictCIT’” OF CARLSBAD - AGENDP BILL TITLE: RESOLUTION OF INTENTION TO FORM AN FINANCING DISTRICT, DIRECTION TO CITY MANAGER TO PREPARE AN INFRASTRUCTURE FINANCING PLAN, AND AMENDMENT TO AGREEMENT WITH KEYSER MARSTON ASSOCIATES RECOMMENDED ACTION: Adopt Resolution No.d000% Resolution of Intention to establish an infrastructure financing district for parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area. Adopt Resolution No.d@-sydesignating and directing the City Manager to prepare an infrastructure financing plan pursuant to California Government Code Section 53395.14 for a proposed infrastructure financing district for parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area. Adopt Resolution No&?B-S/approving an amendment to the agreement with Keyser Marston Associates (KMA) to cover any additional charges from KMA as the City moves through the IFD formation process. ITEM EXPLANATION: In 1993, LEG0 and the City of Carlsbad began discussions about the possibility of locating a LEG0 park on the Carlsbad Ranch site. Part of those discussions addressed how public infrastructure is financed in California, and how these various alternative financing plans could be used to pay for infrastructure serving the Carlsbad Ranch project and LEGO. The financing techniques discussed included the formation of Assessment Districts, Community Facilities Districts (Mello-Roos Districts), parking authorities, and Infrastructure Financing Districts (IFD). Several years later the City approved a development agreement between the City and LEG0 which included language dealing with two possible infrastructure financing techniques: (1) formation of an Assessment District to fund the major public improvements within the Carlsbad Ranch project, and (2) to attempt to form an IFD on the LEG0 park parcel to provide funding for a portion of those improvements. In 1997, the City completed the formation of a 1913 act assessment district that funded a portion of the public improvements on Carlsbad Ranch including Cannon Road and Armada Drive, as well as the related sidewalks, utilities, landscaping, and other improvements. Formation of an IFD has been delayed due to conflicting legal opinions at the state level over the ability of local agencies to successfully form a district under the law as currently written, and the need for preliminary financial studies to determine the economic feasibility of an IFD. An opinion from the Sate Attorney General has provided clarification on the legality of an IFD, and the financial study required by the IFD law has been completed; as a result, the City may now move forward with the district formation. Infrastructure Financinq District (IFD)- Pursuant to the IFD law, cities and counties may finance certain capital facilities and improvements, providing benefits to an area larger than the area of the District, with property tax increment from an Infrastructure Financing District. The tax allocation provisions of the IFD law are essentially the same as those in the Community Redevelopment Law (CRL). The differences between the IFD law and the CRL are: the CRL requires blight and urbanization while the IFD law does not; the CRL does not require the approval of affected taxing agencies while the IFD law requires it but does not allow the inclusion of any school districts or community college districts; the CRL does not require the approval of property owners while the IFD law requires 2/3 approval; the allocation of the tax increment is an automatic pass-through formula under the CRL while it is subject to negotiation /’ ) I’.,, (i, : with the taxing agencies under the IFD law; and finally, the use of the tax increment under the CRL is for redevelopment purposes while under the IFD law it is for infrastructure. The IFD that is proposed to be established will serve to reimburse the development fees for specific improvements that are associated with the proposed LEGOLAND park expansion and hotel (Attachments A & B of Exhibit 1). As part of the IFD, these improvements must be specified in an Infrastructure Financing Plan (IFP). Infrastructure Financina Plan (IFP) - On November 10, 1998, Council approved the hiring of financial consultant Keyser Marston to prepare an infrastructure financing plan as required by the IFD statutes. The purpose of the IFP is to give the City Council the ability to determine if an IFD is a viable infrastructure financing technique, and whether the staff should proceed with IFD formation. Council also authorized the retention of Glenn Wasserman, of Kane, Ballmer & Berkman, as legal counsel to the City to assist with the IFD formation process. The proposed IFP is now complete and addresses the fiscal impact of the IFD on the City and County. The report deals with the fiscal effects of changes in the timing or receipt of property taxes and development impact fees, and in the economic benefits received from LEGOLAND and the LEG0 hotel. The proposed IFP will be distributed per the requirements of the IFD statutes. First, pursuant to IFD law, the Council must adopt (1) a resolution of intent (ROI) to establish an IFD, directing the City Clerk to send the ROI to each affected property owner (LEGO) and taxing entity (County), and setting a date for a public hearing on the proposal (March 14, 2000, Exhibit I), and (2) a resolution directing the appropriate official to prepare an IFP (Exhibit 2). The IFP is then distributed to (a) each owner of land in the district (LEGO); (b) the County; (c) the Planning Commission; and (d) the City Council, together with any report required by CEQA that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed. Since the proposed IFP is complete, it can be distributed following adoption of the resolutions in Exhibits 1 and 2. Following published notices, the proposed IFP will be brought back before Council for a public hearing only, set for March 14, 2000 in Exhibit 1. If Council chooses to proceed with the IFD formation process, a schedule of remaining actions will be presented at that hearing. To continue the IFD formation process, it is anticipated that additional consulting services from KMA will be required. The original contract was for an amount not to exceed $60,000. A total of $85,000 was appropriated for the project. To date, about $60,000 has been expended: $55,000 to KMA, and $5,000 to Kane, Ballmer & Berkman for legal services. The contract amendment (Exhibit 4) with KMA is for an additional $10,000. This amendment is within the original amount appropriated for the project, and still leaves funds available for additional legal services. Finally, the proposed IFP has already been sent to the County in an effort to give County staff as much review time as possible, staff has offered to meet with County staff to answer any questions, and staff has submitted a request to present the IFP to the County Board of Supervisors. FISCAL IMPACT: In March of 1996, the City entered into a development agreement with LEGO. In this agreement, the City committed to using its best efforts to form an infrastructure financing district, which results in forgoing property tax increment revenue to help fund certain infrastructure improvements. On an annual basis, the fiscal impact is the annual property tax increment available within the boundaries of the IFD. The total exposure to the City is the $3.2 million cap on the amount that can be collected by the IFD during the 20 year limit on its existence. Any funds that remain in the IFD at the end of that period would be dispersed back to the contributing taxing agencies. A more detailed explanation of the fiscal impact of the IFD will be presented at the proposed public hearing on the IFP on March 14, 2000. On November 10, 1998, Council approved an agreement with KMA for fees not to exceed $60,000, and a total appropriation of $85,000 for both financial and legal services related to this project. To date, about $60,000 has been expended: $55,000 to KMA and $5,000 for the legal services of Kane, Ballmer & Berkman. It is anticipated that the steps in the IFD formation process will require additional services from both KMA and Kane, Ballmer & Berkman. The contract amendment with KMA for $10,000 will allow a total expenditure of $70,000 for financial consulting services and $15,000 for legal services, which is within the total of $85,000 appropriated for the project. If actual costs are less than estimated, or the Council chooses to stop the IFD formation process after the presentation of the infrastructure financing plan, any unexpended funds will be returned to the General Fund. EXHIBITS: 1. 2. 3. 4. Resolution NoJO@-s.proposing to establish an infrastructure financing district for Parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area, setting a public hearing on the proposed infrastructure financing plan, and directing the City Council to mail the infrastructure financing plan to each affected property owner and taxing entity. Resolution No$~~Y approving the designation of, and direction to, the City Manager to prepare an infrastructure financing plan pursuant to California Government Code Section 53395.14 for a proposed infrastructure financing district for parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area. Resolution No.*s approving an amendment to the agreement with KMA. Amendment to Agreement with KMA. 1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY COUNCIL RESOLUTION NO. 2000-53 RESOLUTION OF INTENTION TO ESTABLISH AN INFRASTRUCTURE FINANCING DISTRICT FOR PARCELS 17 AND 18 OF THE CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA WHEREAS, the Legislature of the State of California has enacted a comprehensive statutory scheme, the Infrastructure Financing District Act (Government Code Sections 53395-53397.11; the “Act”), authorizing a city, county, or city or county to create an infrastructure financing district as a means of financing the construction of public works and facilities for new development projects through the funding mechanism known as “tax increment financing” under which incremental increases in property taxes are allocated to finance public capital facilities associated with the district; and WHEREAS, in the City of Carlsbad and Team California Incentive Schedule dated may 12, 1993, the City of Carlsbad has offered to investigate the use of infrastructure financing districts to fund basic public improvements in connection with the LEG0 and resort hotel developments on Parcel 17 and Parcel 18 of the Carlsbad Ranch Amended Specific Plan Area (the “Property”); and WHEREAS, the City Council of the City of Carlsbad and the owner of the Property wish to institute the proceedings for the establishment of a district for the Property. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, as follows: 1. 2. 3. 4. 5. 6. 7. The above recitations are true and correct. An infrastructure financing district is proposed to be established under the terms of the Act. The boundaries of the proposed district, consisting of Parcel 17 and Parcel 18 of the Carlsbad Ranch Amended Specific Plan Area, are depicted on the map attached to this Resolution as Exhibit “A”, which is a true copy of the map on file in the office of the City Clerk. The type of public facilities proposed to be financed by the district are those described in the Schedule of Proposed Public Facilities attached to this Resolution as Exhibit “B”. Incremental property tax revenue from the City and from the County of San Diego may be used to finance these public facilities. This City Council shall hold a public hearing on a proposed Infrastructure Financing Plan on March 14,2000, at 6:00 p.m. or as soon thereafter as the matter may be heard, in the City Council chambers of City Hall, 1200 Carlsbad Village Drive, Carlsbad, California. The City Clerk is hereby directed to mail a copy of this resolution of intention to create the district to each owner of land within the district. 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 20 - 8. The City Clerk is hereby directed to mail a copy of this resolution to each affected taxing entity. 9. This resolution shall be effective immediately upon its approval. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day ofFebruary2000, by the following vote, to wit: AYES: Councilmembers Lewis, Hall, Finnila, Nygaard. NOES: None. ABSENT: Kulchin. ATTEST: t City Clerk - CITY COUNCIL RESOLUTION NO. 2000-54 RESOLUTION DESIGNATING AND DIRECTING THE CITY MANAGER TO PREPARE AN INFRASTRUCTURE FINANCING PLAN PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 53395.14 FOR A PROPOSED INFRASTRUCTURE FINANCING DISTRICT FOR PARCELS 17 AND 18 OF THE CARLSBAD RANCH AMENDED SPECIFIC PLAN AREA WHEREAS, this City Council has adopted a Resolution of Intention to establish an infrastructure financing district for Parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area; and WHEREAS, the City Council of the City of Carlsbad and the owner of the Property wish to institute the proceedings for the establishment of a district for the Property. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, as follows: 1. The above recitations are true and correct. 2. The City Council hereby designates and directs the City Manager to prepare an infrastructure plan pursuant to Government Code Section 53395.14. 3. This resolution shall be effective immediately upon its approval. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of FebruarZOOO, by the following vote, to wit: AYES: NOES: ABSENT: ATTEST: RAIWD, Qt$&lerk Karen R. Kundtz, Awistant City Clerk 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 - CITY COUNCIL RESOLUTION NO. 2000-55 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD CALIFORNIA APPROVING AN AMENDMENT TO THE AGREEMENT WITH KEYSER MARSTON ASSOCIATES FOR CONTINUING FINANCIAL SERVICES ASSOCIATED WITH THE REQUIRED FINANCIAL DOCUMENTS FOR THE FORMATION OF AN INFRASTRUCTURE FINANCING DISTRICT WHEREAS, The City of Carlsbad has entered into a development agreement with the LEG0 Park Planning, dated January 6, 1996, and WHEREAS, Section 3.2.7 of said development agreement states that the parties agree to consider the formation of an Infrastructure Financing District (IFD) to assist with the funding of public improvements within and around the Catlsbad Ranch project serving the LEG0 park parcel, and WHEREAS, prior to entering into the process of forming an IFD it is necessary for the City to test the financial feasibility of the project, and WHEREAS, if the project is found to be feasible, and the City Council elects to proceed with the formation of the IFD, state law requires that a formal financing plan be submitted with the formation documents, and WHEREAS, Keyser Marston has completed a financing plan and their services regarding the plan will continue to be needed in the IFD formation process, and WHEREAS, the City will require the continued assistance of legal counsel in the review of information prepared by Keyser Marston, and in the formation of any subsequent infrastructure financing district. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, as follows: 1. That the above recitations are true and correct. 2. That the Mayor is hereby authorized to execute an amendment to the agreement with Keyser Marston for continued services related to the preparation of a financing plan related to the formation of an IFD. I I I I I 1 ~ 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the day of Februar$ooo, by the following vote, 8th to wit: I AYES: Councilmembers Lewis, Hall, Finnila, Nygaard. NOES: None. ABSENT: Kulchin. AlTEST: istant City Clerk FILE: Library - Latest AB LEG0 ROI IFD EXHIBIT 4 AMENDMENT NO. 1 TO AGREEMENT This Amendment is entered into and effective as of the 8th day of February , 2005 amending the agreement dated October 10, 1998, and extended on October 9, 1999, by and between the City of Carlsbad, a municipal corporation, hereinafter referred to as “City”, and Keyser Marston Associates, Inc., hereinafter referred to as, “Contractor” for feasibility study and financing plan. RECITALS WHEREAS, the initial agreement, dated October 10, 1998, identified a scope of work to provide services for preparation of a financial feasibility study, and financing plan for the City of Carlsbad Infrastructure Financing District (IFD) ; and WHEREAS, a supplemental scope of work and fee schedule have been negotiated and agreed to between the parties hereto, and as shown on Exhibit “A” Scope of Services and Fee; NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor hereby agree as follows: 1. Contractor shall provide services as outlined on the attached Exhibit “A”. 2. City shall pay Contractor for all work associated with Paragraph 1 above, on a time and materials basis not-to-exceed $lO,OOO.OO. Contractor shall provide City on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by City. 3. Contractor shall complete all work outlined on the attached Exhibit “A” by October 9, 1999, or by expiration of the agreement amended hereby. 20006ndh 212198 - 4. All other provisions of the aforementioned agreement entered into on October 9, 1998, by and between City and Contractor shall remain in full force and effect. 5. All requisite insurance policies to be maintained by the Contractor shall include coverage for the amended assignment and scope of work. Acknowledged and Accepted: CONTRACTOR: Kevser Mm Associates. Inc. Gerald M. TrimbleNice President (print name/title) By: (sign here) City Clerk DATE e (print name/title) (Proper notarial acknowledgment of execution by Contractor must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROVED AS TO FORM: RON-. BALL, City Attorney BY: Beputy City Attorney d-L>OC!D. library Keyser Amendment 212198 20006ndh - - CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT STATE OF CALIFORNIA COUNTY OF &otLL& ; - / DATE before me, ’ NAME, TITLE OF OFFICER - E.G., ‘JANE DOE, NOTARY PUBLIC” WSOnaliy appeared, (_+dd MC -i-iwbcb)e personally known to me c) to be the persow whose nam@)Is/are subscribed to the within instrument and acknowledged to me that he/s&V &executed the same in his/JefYt,be+authorized capacitym and that by his/@H@ei+ signaturepon the instrument the personm or the entity upon behalf of which the person&-acted, executed the instrument. WITNESS my hand and official seal. ; / g&-! &JL I”- I (IL / 1, , (SEAL) NOTARY PUBLIC SIGNA Michelle Munoz t OPTIONAL INFORMATION (?)pl@ J TITLE OR TYPE OF DOCUMENT iL/z\c?v u % DATE OF DOCUMENT NUMBER OF PAGES -7 SIGNER(S)OTHERTHANNAMEDABOVE ^ TLL). i.rk33ti 3:51PM KMR SF NO.325 P.2 CERTIFICATE OF SECRETARY I, the undersigned, do hereby certify that: (1) I am the duly elected and acting Secretary of Keyser Marston Associates, Inc. a I California Corporation; and / (2) That Gerald M, Trimble,‘acting in hjs capacity as Vice President of Keyser Marston Associates, Inc., is authorized on behalf of the Corporation to sign the First Amendment to Agreement for Consulting Setvices between the Cii of Carisbad and Keyser Marston Associates, Inc, (3) Further, all corporate officers of Keyser Marston Associates, Inc. are authorized to enter into contracts and execute instruments in the name of the Corporation or on behalf of the Corporation, pursuant to the Corporation’s Bylaws, adopted September 14, 1990. IN WITNESS WHEREOF, I have hereunto subsuibed my name and affuced the seal of such corporation this 1st day of February, 2000. Diane Me Chambers, Secretary Corporate Officers of Keyser Marston Associates, Inc. : A. Jerry Keyser Timothy C. Kelly Denise E. Conley Kate E. Funk Calvin E. Hollis, II Kathleen H. Head Gerald M. Trimble Robert J, Wetmore Diane M. Chambers President Vice President vice President Vice President Vice President vice President Vice P&dent Vice President Secretary - KEYSER MARSTO~ ASSOCIATES INC. 1660 HOTEL CIRCLE NORTH, SUITE 716 SAN DIIGO, CALIFORNIA 92 108 PHONE: 619/718-9500 FAX: 619/718-9508 WEB SITE: WWW.KMAINC.COM EXHIBIT A February 2,200O Ms. Erin Letsch Risk Manager City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 ADVISORSIN: REAL ESTATE RI?DB%LOPMBNT APPORDABLE HOUSING ECONOMIC DEVELOPMENT FISCAL IMPACT INFRASTRUCTURE FINANCE VALUATION AND LITIGATION SUPPORT San Diego Gerald M. Trimble Robert J. Wetmore Paul C. Marra Los Angeles Calvin E. Hollis, II Kathleen H. Head James A. Rabe SANFRANCISCO A. Jerry Keyser Timothy C. Kelly Kate Earle Funk Denise E. Co&y Debbie M. Kern , Martha N. Packard Re: Scope of Services and Fee: Amendment to Agreement for Financial Consulting Services Dated October 10, 1998, and Extended October 9, 1999 Dear Erin: This letter is provided in response to your request that Keyser Marston Associates, Inc. (KMA) outline the additional consulting services to be provided under the above contract related to the Legoland Infrastructure Financing Plan. The agreed upon scope of work for continuing financial consulting services on the Infrastructure Financing Plan (IFP), required by the Infrastructure Financing District statutes, at the rates in the attached fee schedule, is as follows: l Participation with the City in meetings with County staff regarding the IFP; l Participation in public hearings on the IFD, as requested by the City; and l Additional work on the IFP as needed as the City moves through the IFD formation process. Document20007;ndh 11060.001.001 Ms. Erin Letsch City of Carlsbad February 2,200O Page 2 We look forward to concluding this process with you in the coming months. If you have any questions, please call. Thank you. Sincerely, KEYSER MARSTON ASSOCIATES, INC. Paul C. Marra attachment Document20007;ndh 11060.001.001 -.. !I ’ \- .,? ; - -. HOURLY FEE SCHEDULE KEYSER MARSTON ASSOCIATES, INC. 1999/2000 A. JERRY KEYSER * MANAGING PRINCIPAL* PRINCIPAL’ MANAGER* SENIOR ASSOCIATE ASSOCIATE SENIOR ANALYST ANALYST TECHNICAL STAFF ADMINISTRATIVE STAFF $185.00 $180.00 $165.00 $140.00 $125.00 $110.00 $ 95.00 $ 80.00 $ 67.50 $ 52.50 Directly related job expenses not included in the above rates are: auto mileage, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data pro- cessing, graphics and printing. Directly related job expenses will be billed at 110% of cost. Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date. A charge of 1% per month will be added to all past due accounts. *Rates for individuals in these categories will be increased by 50% for time spent in court testimony. 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I I I I ;: I I I I ; I I I I I I I I I I I I ; ; I i i ‘, .____ _ - ____ __..._ - __.. -. ---------- _. .-. - -. -.-... . ’ i I I - I I I .I 1 I I 01 2 2 2 1 ,o I / ._ I I I I 1 I I I I 1 I I I* z 0 i= e z 0 Y P I- z: is e 3 5 tz ‘1 c .- u -,5 - City of Carlsbad February 15,200O William Kelly Chief Financial Officer County of San Diego 1600 Pacific Coast Highway Room 166 San Diego, CA 92101 Re: Infrastructure Financing District - Resolution of Intention On February 8, 2000, the City Council of the City of Carlsbad adopted Resolution No. 2000-53, a Resolution of Intention to establish an infrastructure financing district for parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area. Pursuant to California Government Code Section 53395.11, please find enclosed a copy of this resolution. ISAPELLE PAULSEN Administrative Secretary c: Risk Manager Enclosure 1200 Carlsbad Village Drive - Carlsbad, CA 92008-l 989 - (760) 434-2808 @ _- - City of Carlsbad February 15,200O Cindy Gompper-Graves County Program Manager/Ombudsperson County of San Diego 5201 Ruffin Road, Suite N San Diego, CA 92123 Re: Infrastructure Financing District - Resolution of Intention On February 8, 2000, the City Council of the City of Carlsbad adopted Resolution No. 2000-53, a Resolution of Intention to establish an infrastructure financing district for parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area. Pursuant to California Government Code Section 53395.11, please find enclosed a copy of this resolution. J&&&J?& ISABELLE PAULSEN Administrative Secretary c: Risk Manager Enclosure 1200 Carlsbad Village Drive - Carlsbad, CA 92008-1989 - (760) 434-2808 @ , - City of Carlsbad February 15,200O Bob Montgomery Vice President of Operations and Development LEGOLAND 1914 Palomar Oaks Way, Suite 100 Carlsbad, CA 92008 Re: Infrastructure Financing District - Resolution of Intention On February 8, 2000, the City Council of the City of Carlsbad adopted Resolution No. 2000-53, a Resolution of Intention to establish an infrastructure financing district for parcels 17 and 18 of the Carlsbad Ranch Amended Specific Plan Area. Pursuant to California Government Code Section 53395.11, please find enclosed a copy of this resolution. ISABELLE PAULSEN Administrative Secretary c: Risk Manager Enclosure 1200 Carlsbad Village Drive - Carlsbad, CA 92008-1989 - (760) 434-2808 49