HomeMy WebLinkAbout2001-07-10; City Council; 16275; Poinsettia Lane AD & Deposit/Reimbursement Agmt.CITY OF CARLSBAD -AGENDA BILL
AB# /6.6275
MTG. 07/l O/O1
DEPT. FIN
TITLE- --
REQUEST TO BEGIN WORK ON POINSETTIA LANE
EAST ASSESSMENT DISTRICT AND APPROVE A
DEPOSIT/REIMBURSEMENT AGREEMENT CITYMGR w
RECOMMENDED ACTION:
Adopt Resolution No. 2001-207 directing staff to begin work on the establishment an
assessment district for Poinsettia Lane East and authorizing the Mayor to sign the
Deposit/Reimbursement Agreement.
ITEM EXPLANATION:
The City has received petitions from the property owners of the areas known as Bressi Ranch in
Local Facilities Management Plan (LFMP) Zone 17 and La Costa Greens in LFMP Zone 10 to
consider the formation of a 1913/1915 Act Assessment District to finance the construction of
various public improvements. The owner of the Bressi property is Lennar Bressi Ranch Venture,
LLC and the owner of the La Costa Greens property is Real Estate Collateral Management
Company (RECMC).
The general boundary to the Poinsettia Lane East Assessment District, as proposed by the
property owners, is shown in Exhibit 1. Bressi Ranch contains two component projects, identified
as Zones 1 and 2. Zone 1 is a planned industrial development and Zone 2 is a planned mixed-use
development consisting of residential, commercial and community uses.
The facilities to be included as proposed by the property owners are:
. Construction of four lanes of Poinsettia Lane from El Camino Real to the existing terminus
west of Melrose Drive . Construction of four lanes of El Fuerte from Palomar Airport Road to the existing terminus
north of Ranch0 Pancho . Widening of Palomar Airport Road from El Camino Real to the eastern boundary of Bressi
Ranch . Widening of El Camino Real from Palomar Airport Road to the southern boundary of Bressi
Ranch and along the La Costa Greens frontage . Median improvements of Alga Road from the western to the eastern boundaries of La
Costa Greens
Preliminary estimates show the cost for these facilities to be approximately $38 million.
The Policy 33 team has met and reviewed the property owners’ proposal. Generally, all of the
requested facilities fall within the guidelines set by Council Policy 33. The committee has requested some additional information and clarification on the termination points for the frontage
improvements to insure that the proposed improvements will form complete linkages.
At this time, staff is requesting authorization to expend time in preparing an implementation plan
for the formation of this Assessment District. One of the first steps to be taken in beginning the
work is to hire a team of consultants to assist the City with the formation of the district. It is a
common practice to hire an Assessment Engineer, Bond Counsel and a Financial Advisor.
The property owners have deposited $50,000 to pay for the costs of these consultants and any
other costs incurred by the City. The terms of the deposit are outlined in the
Deposit/Reimbursement Agreement (Attachment A to Resolution). Staff is also asking council to
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authorize the Mayor to sign the Deposit/Reimbursement Agreement. Once authorization to begin
work has been given, staff will develop the necessary contracts with the consultants and bring
them back for Council for approval.
FISCAL IMPACT:
The property owners have deposited $50,000 to cover the initial tasks required to establish an
assessment district. Additional costs may be incurred to complete a property appraisal and/or
feasibility study. Any additional costs will be borne by the property owners within the district.
Once formed, the district will provide a small amount of revenue to the General Fund to cover
annual administrative costs. If the district is not formed, the City will reimburse any unspent and
unencumbered funds to the property owners.
EXHIBITS:
1. City of Carlsbad Assessment District Proposed Boundary and Facilities.
2. Resolution No. 206 I-Jo 7.
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LEGEND
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t 1 ASSESSMENT DISTRICT AND
ZONE BOUNDARIES
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FIGURE A
CITY OF CARLSBAD ASSESSMENT DISTRICT
PROPOSED BOUNDARY AND FACILITIES 01-w _
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EXHIBIT 2
RESOLUTION NO 2001-207 .
A RESOLUTION OF THE dlTY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, DIRECTING STAFF TO BEGIN WORK
ON THE ESTABLISHMENT OF THE POINSETTIA LANE EAST
ASSESSMENT DISTRICT AND AUTHORIZING THE MAYOR TO
SIGN A DEPOSIT/REIMBURSEMENT AGREEMENT
WHEREAS, the property owners within the areas known as Bressi Ranch and La
Costa Greens have petitioned the City to form a 1913/1915 Act Assessment District to finance
various public improvements; and
WHEREAS, the property owners have requested that the following improvements be
funded through a 1913/l 915 Act Assessment District:
. Construction of four lanes of Poinsettia Lane from El Camino Real to the existing
terminus west of Melrose Drive;
. Construction of four lanes of El Fuerte from Palomar Airport Road to the existing
terminus north of Ranch0 Pancho;
. Widening of Palomar Airport Road from El Camino Real to the eastern boundary
of Bressi Ranch;
. Widening of El Camino Real from Palomar Airport Road to the southern
boundary of Bressi Ranch and along the La Costa Greens frontage;
. Median improvements of Alga Road from the western to the eastern boundaries
of La Costa Greens; and
WHEREAS, the public facilities to be included within this assessment district, have
been reviewed and have been found to comply with Council Policy 33 by the City’s Policy 33
Committee; and
WHEREAS, the property owners have deposited $50,000 with the City to finance
preliminary costs related to the formation of this assessment district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California as follows:
1. That the above recitations are true and correct.
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2. That the City Council authorizes staff to begin work on the formation of the
Poinsettia Lane East assessment district.
3. That the City Council authorizes the Mayor to execute the
Deposit/Reimbursement Agreement (Attachment A).
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on
the 10th day of JLJLY , 2001, by the following vote, to wit:
AYES: Council 2lembers Lewis, Kulchin, Finnila, Nygaard, Hall
NOES: None
ABSENT: None
ATTEST:
Y
CLAUdE i.‘LEWIS, Mayor
LORRAINE WOOD, City Clerk
Ill
ill
ATTACEMJSNT A
DEPOSIT/REIMBURSEMENT AGREEMENT
(Bressi Ranch and La Costa Greens)
THIS DEPOSIT/REIMBURSEMENT AGREEMENT (the “Agreement”) is by and
among the City of Carlsbad (the “City”), for itself and on behalf of the proposed City of
Carlsbad, California, Assessment District for Bressi Ranch and La Costa Greens (the “AD”),
Lennar Bressi Ranch Venture, LLC, a California limited liability company (“Lermar”) and Real
Estate Collateral Management Company, a Delaware corporation (“RECMC”). Lennar and
RECMC are sometimes collectively referred to as the “Developers.”
RECITALS:
WHEREAS, the Developers have requested that the City consider the formation of the
AD and the issuance of bonds for the AD (the “Bonds”) under the Municipal Improvement Act
of 19 13 and the Improvement Bond Act of 19 15 (collectively, the “Act”); and
WHEREAS, the Developers are willing to deposit funds with the City to ensure payment
of the costs of the City in forming the AD and otherwise in connection with the issuance of
bonds for the AD and the proposed expenditure of the proceeds thereof, provided that such funds
so advanced are reimbursed to the Developers from the proceeds of any bonds issued by the City
for the AD to the extent provided herein; and
WHEREAS, the City and the Developers now desire to specify the terms of said deposit
and reimbursement.
AGREEMWT:
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants sgi
forth herein, and for other consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
Section 1. The Deuosit: Additional Advances. Each of Lennar and RECMC have
provided $25,000 to the City for a total of $50,000 (the “Deposit”), to be used by the City to pay
the costs in conducting proceedings for the formation of the AD and the issuance of bonds for
the AD (as more fully described in Section 2(a) below, the “Initial Costs”), said amount having
been heretofore delivered by the Developers to the Finance Director of the City by means of
checks made payable to the “City of Carlsbad.” The City, by its execution hereof, acknowledges
receipt by the City of the Deposit. The checks representing the Deposit will be cashed by the
City, and the Deposit may be commingled with other funds of the City for purposes of
investment and safekeeping, but the City shall at all times maintain records as to the expenditure
of the Deposit.
The Developers hereby agree to advance (in equal amounts for each of Lennar and
RECMC) any additional amounts necessary to pay any Initial Costs incurred by the City, in
excess of the amount of the Deposit, promptly upon written demand therefore by the Finance
Director of the City; provided that the amount of the Deposit, plus any such additional amounts
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(the “Additional Deposits” and, collectively with the Deposit, the “Deposits”), shall not exceed
$80,000 without the prior written consent of both Lennar and RECMC. Notwithstanding the
foregoing, the City Manager may direct City staff and consultants to cease all work related to the
formation of the AD and the issuance of the Bonds until any additional amounts so demanded
has been received by the City.
Section 2. Use of Funds. The Deposits shall be administered as follows:
(a) The Finance Director of the City may draw upon the Deposits from time to time
to pay the Initial Costs, including but not limited to: (i) the fees and expenses of any consultants
to the City employed in connection with the issuance of the Bonds and the proposed expenditure
of the proceeds thereof (such as assessment engineering, legal counsel, including the City
Attorney, Bond Counsel and financial advisory fees); (ii) the costs of market absorption,
appraisal and feasibility studies and other reports necessary or deemed advisable by City staff or
consultants in connection with the Bonds; (iii) costs of publication of notices, preparation and
mailing of ballots and other costs related to any election with respect to the AD, the assessments
to be levied therein and any bonded indebtedness thereof; (iv) a reasonable charge for City staff
time, as determined by the City Manager in his sole discretion, in analyzing the AD, the Bonds
and the expenditure of the proceeds thereof, including a reasonable allocation of City overhead
expense related thereto; and (v) any and all other actual costs and expenses incurred by the City
with respect to the AD or the Bonds after the date of execution of this Agreement.
(b> If the Bonds are issued under the Act by the City secured by assessments levied
upon the land within the AD, the City shall provide for reimbursement to the Developers,
without interest, of all amounts charged against the Deposits, said reimbursement to be made
solely from the proceeds of the Bonds and only to the extent otherwise permitted under the Act.
On or within ten (10) business days after the date of issuance and delivery of the Bonds, the
Finance Director of the City shall return the then unexpended Deposits to the Developers,
without interest, less an amount equal to any costs incurred by the City or that the City is
otherwise committed to pay, which costs would be subject to payment under Section 2(a) above,
but have not yet been so paid.
w If the Bonds are not issued, the Finance Director of the City shall, within ten (10)
business days after written request of either Lennar or RECMC, immediately cease all work on
the formation of the AD and return the then unexpended Deposits to the Developers, without
interest, less an amount equal to any costs incurred by the City or that the City is otherwise
committed to pay, which costs would be subject to payment under Section 2(a) above but have
not yet been so paid.
Section 3. Reimbursement of Other Develouer Costs. To the extent permitted under
the Act and otherwise provided for, at the reasonable discretion of the City, in the proceedings
for the issuance of the Bonds, nothing contained herein shall prohibit reimbursement of other
costs and expenses of the Developers, or any other entity with an interest in all or any portion of
the land in the AD, incurred in connection with the AD from the proceeds of the Bonds,
including, but not limited to fees and expenses of legal counsel to the Developers and financial
and assessment spread consultant expenses. Any such reimbursement shall be made solely from
the proceeds of the Bonds, if any.
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Section 4. Agreement Not Debt or Liabilitv of Citv. It is hereby acknowledged and
agreed that this Agreement is not a debt or liability of the City. The City shall not in any event
be liable hereunder other than to return the unexpended and uncommitted portions of the
Deposits as provided in Section 2 above and provide an accounting under Section 7 below. The
City shall not be obligated to advance any of its own funds with respect to the AD or for any of
the other purposes listed in Section 2(a) hereof. No member of the City Council, or officer,
employee or agent of the City shall to any extent be personally liable hereunder.
Section 5. No Oblipation to Issue Bonds. The provisions of this Agreement shall in
no way obligate the City to form the AD, to issue any bonds, or to expend any of its own funds
in connection with the AD.
Section 6. Severability. If any part of this Agreement is held to be illegal or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be
given effect to the fullest extent reasonably possible.
Section 7. Accounting. The City Finance Director shall provide the Developer with a
written accounting of moneys expended under this Agreement, within ten (10) business days of
receipt by the Finance Director of the City of a written request therefore submitted by an
authorized officer of the Developer. No more than one accounting will be provided in any
calendar month and the cost of providing the accounting shall be charged to the Deposits.
Section 8. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the successors and assigns of the parties hereto.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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Section 9. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original.
IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the
day and year written alongside their signature line below.
Executed on:
June&, 2001
DEVELOPERS:
LENNAR BRESSI RANCH VENTURE LLC,
a California limited liability company
By: Lennar Bressi Carlsbad, LLC
a California limited liability company
Its: Managing Member
Executed on:
June -, 2001
Executed on:
June -, 2001
By: Lennar Homes of California, Inc.
a California corporation
By:
Robert L. Y Santos, Vice President
By:
Its:
REAL ESTATE COLLATERAL
MANAGEMENT COMPANY, a Delaware
corporation
By:
Its:
By:
Its:
CITY:
CITY OF CARLSBAD, for itself and on behalf
of its Assessment District to be formed
By:
Its:
24531-9-1647032.2
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STATE OF CALIFORNIA )
COUNTY O~%&&I 1 ss-
On Ah personally
appeared personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person whose name(s)
a&is subscribed to the within instrument and acknowledged to me that hefsbeBhq
executed the same in his/he&he+ authorized capacity, and that by his+her%Mr
signature@ on the instrument the person@& or the entity upon behalf of which the
person@+acted, executed the instrument.
WITNESS my hand and official seal.
STATE OF CALIFORNIA )
; . f.Cl=AI \
) ss.
COUNTY OF )
On before me, personally
appeared personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person whose name(s)
are/is subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity, and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature (SEAL)
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la
Section 9. Counternarts. This Agreement may be executed in counterparts, each of
which shall be deemed an original.
IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the
day and year written alongside their signature line below.
Executed on:
June -, 2001
DEVELOPERS:
LENNAR HOMES OF CALIFORNIA, INC., a
California corporation
By:
Robert L. Santos, Vice President
By:
Its:
Executed on:
June u, 2001
Executed on:
June -, 2001
APPROVED AS TO FORM:
CITY ATTORNEY OF THE
CITY&W$AR.LSBAD
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REAL ESTATE COLLATERAL
MANAGEMENT COMPANY, a Delaware
corporation
6/26/O 1
,I-/Lo r’s
STATE OF @MDBMA )
/ i ss. COUNTY OFCoo c
appeaz; JAY/$ before me, pt** h 0. c. k*de 0 personally
ikrrl e. K/u. personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person whose name(s)
are/is subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity, and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature j+@&cfAw , (SEAL)
~f/I--wr~s
STATE OF-A )
COUNTY OF && j --
before m ,
2A
~~z~~ -c. M BF/mD
ti *I-
personally
appeared personaily known to me (or proved to me on the ba$ of satisfactory evidence) to be the person whose name(s)
are/is subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity, and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS rnH hand and official seal.
NOTARY PUBLIC, ‘STATE OF ILLINOIS MY COMMISSION EXPIRES g/29/2001 t
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