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HomeMy WebLinkAbout2004-04-20; City Council; 17596; CFD 1 annexation 03/04-01 Manzanita Partners4B# 17,596 WTG. 04/20/04 DEPT. FIN RECOMMENDED ACTION: TITLE: COMMUNITY FACILITIES DISTRICT NO. 1 MANZANITA PARTNERS , L. L.C. ANNEXATION NO. 03/04-01 CITY MGR. AdGpt Resolution No. 2004-128 certifying and adding property to an existing Community Facilities District ITEM EXPLANATION: Background Property owners of vacant land in Carlsbad and the City worked together to form Community Facilities District (CFD) No. 1. The CFD provides funding for a variety of infrastructure projects which are necessary to meet the requirements of the Growth Management Program. Council formed CFD No. 1 in 1991, following an election by property owners for a special tax to be levied upon their property to fund construction or acquisition of capital projects. The Carlsbad philosophy is that CFD financing is not intended to relieve any property owner of the responsibility to provide funding for infrastructure improvements related to a single development. Because our guidelines ensure that the obligation on a residential unit is paid in full when the building permit is issued, a City CFD affects no homeowner in Carlsbad. No homeowner will pay City-imposed Mello-Roos taxes. Annexation of Manzanita Apartments (No. 03/04-01 Many Local Facilities Management Zones were not included in CFD No. 1 when it was initially formed. Annexation proceedings were anticipated to occur as each zone progressed through the development process. With the exception of the more developed areas, each zone plan requires either annexation to the CFD or developer funding of all required facilities. In April 1993, Council authorized future annexation of the remaining undeveloped land into CFD No. 1. This action permits developers to use the simplified annexation procedure and allows development to proceed without additional public hearings or special elections. The simplified annexation procedure lets property owners administratively petition to annex into CFD No. 1. Upon Council approval, property will be annexed into CFD No. 1, thus fulfilling their obligation for certain public facilities. I Page 2 of Agenda Bill # 17,596 The Manzanita Apartments property is required to annex into CFD No. 1 as a condition of approval of its tentative map. The applicants, Manzanita Partners, LLC, have completed the required Consent and Waiver to Shortening of Time for Conducting a Special Election in Property Proposed to be Annexed (Exhibit 2) and cast positive ballots for the annexation of property and the levy of the special tax. The election was held on February 24, 2004. The City Clerk completed a Statement of Votes Cast showing 44 votes cast in favor of the proposition and zero votes cast against the proposition (Exhibit 1). Council may formally authorize the annexation by certifying and adding the property into the original Community Facilities District. After Council authorization, a Notice of Annexation (on file with the City Clerk) will be filed with the County Recorder as a lien against the property. FISCAL IMPACT: When CFD No. 1 was established, it was anticipated that all vacant, undeveloped or underdeveloped land would annex as it developed, thus providing the necessary cash flow to finance the construction of certain public facilities. Since its inception, CFD No. 1 has financed the construction of the 1-5 Interchanges, the Carlsbad library on Dove Street, La Costa Boulevard, Faraday Avenue, portions of Rancho Santa Fe Road and other road projects. Future projects to be financed by the CFD include a Public Works Center and eventually a City Hall complex. The property being annexed has been approved for the development of 157 apartment units comprised of approximately 9 net acres. The property will be subject to the Special Tax on Undeveloped Property; however, that rate is currently set at 0 so no undeveloped property tax will apply at this time. The property is also subject to the Special Development Tax - One-Time at the time of building permit issuance. Using the 2003-04 tax rates, this tax is estimated at $301,391. Through the use of the simplified annexation procedure, both the City and the owner are able to avoid election costs and additional time delays. A fee of $900 to cover annexation processing, map preparation, and filing costs has been paid by the property owner. EXHIBITS: 1. Resolution No. 2004-128 certifying and adding property to an existing Community Facilities District No. I. 2. Consent and Waiver to Shortening of Time for Conducting a Special Election in Property Proposed to be Annexed to City of Carlsbad Community Facilities District No.1 and Appointment of Authorized Representative Annexation No. 03/04-01 - Manzanita Apartments. 3. Community Facilities District No. 1, 2003-04 maximum tax rates. 4. Notice of Annexation No. 03/04-01 (on file with the City Clerk). DEPARTMENT CONTACT: Lisa Hildabrand (760) 602-2430, Ihild@ci.carlsbad.ca.us 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 RESOLUTION NO. 2004-128 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CERTIFYING THE RESULTS OF AN ELECTION AND ADDING PROPERTY TO COMMUNITY FACILITIES DISTRICT NO. 1 WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA (the “City Council”), has previously formed a Community Facilities District pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code of the State of California, said Article 3.5 thereof. The existing Community Facilities District being designated as COMMUNITY FACILITIES DISTRICT NO. 1 (the “District”); and, WHEREAS, the legislative body has also established a procedure to allow and provide for future annexations to the District and the territory proposed to be so annexed in the future was designated as COMMUNITY FACILITIES DISTRICT NO. 1, FUTURE ANNEXATION AREA; and WHEREAS, at this time the unanimous consent to the annexation of certain territory to the District has been received from the property owner or owners of such territory, and such territory has been designated as ANNEXATION NO. 03/04-01 (the “Annexed Area”); and WHEREAS, less than twelve (12) registered voters have resided within the territory of Annexed Area for each of the ninety (90) days preceding February 24, 2004, therefore, pursuant to the Act the qualified electors of the Annexed Area shall be the “landowners” of such Annexed Area as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner of record as of February 24, 2004, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within such Annexed Area; and WHEREAS, the time limit specified by the Act for conducting an election to submit the levy of the special taxes on the property within the Annexed Area to the qualified electors of the Annexed Area and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexed Area; and WHEREAS, the City Clerk of the City of Carlsbad has caused ballots to be distributed to the qualified electors of the Annexed Area, has received and canvassed such ballots and made a report to this City Council regarding the results of such canvas, a copy of which is attached as Exhibit A hereto and incorporated herein by this reference; and WHEREAS, at this time the measure voted upon and such measure did receive the favorable 2/3’s vote of the qualified electors, and this City Council desires to declare the results of the election; and 3 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 WHEREAS, a map showing the Annexed Area and designated as Annexation No. 03/04-01 (the “Annexation Map”), a copy of which is attached as Exhibit B hereto and incorporated herein by this reference, has been submitted to this legislative body. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: R EC ITALS SECTION 1. The above recitals are all true and correct. FINDINGS SECTION 2. That this legislative body does hereby further determine as follows: A. The unanimous consent to the annexation of the Annexed Area to the District has been given by all of the owners of the Annexed Area and such consent shall be kept on file in the Office of the City Clerk. B. Less than twelve (12) registered voters have resided within the territory of Annexed Area for each of the ninety (90) days preceding February 24, 2004, therefore, pursuant to the Act the qualified electors of the Annexed Area shall be the “landowners” of such Annexed Area as such term is defined in Government Code Section 53317(f). C. The qualified electors of the Annexed Area have unanimously voted in favor of the levy of special taxes within the Annexed Area upon its annexation to the District. ANNEXED AREA SECTION 3. The boundaries and parcels of territory within the Annexed Area and on which special taxes will be levied in order to pay for the costs and expenses of authorized public facilities are shown on the Annexation Map as submitted to and hereby approved by this legislative body. DECLARATION OF ANNEXATION SECTION 4. This legislative body does hereby determine and declare that the Annexed Area is now added to and becomes a part of the District. The City Council of the City, acting as the legislative body of the District, is hereby empowered to levy the authorized special tax within the Annexed Area. NOTICE SECTION 5. Immediately upon adoption of this Resolution, notice shall be given as follows: A. A copy of the annexation map as approved shall be filed in the Office of the County Recorder no later than fifteen (1 5) days after the date of adoption of this Resolution. 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 B. An Amendment to the Notice of Special Tax Lien (Notice of Annexation) shall be recorded in the Office of the County Recorder no later than fifteen (1 5) days after the date of adoption of this Resolution. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 20th day of April , 2004 by the following vote, to wit: AYES: Council :.Tembers Lewis, Finnil hin, Hall a NOES: None ABSENT: None ATTEST: 547lAdQB-a ORRAINE M. WOOD, City Clerk (SEAL) 5 Exhibit A Certificate of Election Official and Statement of Votes Cast 6 EXHIBIT “A” CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO CITY OF CARLSBAD 1 ) ss. The undersigned, ELECTION OFFICIAL OF THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 SPECIAL ELECTION ANNEXATION NO. 03/04-01 in such City, held February 24,2004. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the area proposed to be annexed to Community Facilities District No. 1 of such City for or against the Measure are full, true and correct. VOTES CAST ON PROPOSITION 1 : YES q% NO 0 WITNESS my hand this %dayof ,20&. H STATE OF CALIFORNIA 7 Exhibit B Annexation Map E P 8 8 i m Exhibit 2 CONSENT AND WAIVER TO SHORTENING OF TIME FOR CONDUCTING A SPECIAL ELECTION IN PROPERTY PROPOSED TO BE ANNEXED TO CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 AND APPOINTMENT OF AUTHORIZED REPRESENTATIVES ANNEXATION NO. 03/04-01 TO: CITY COUNCIL COMMUNITY FACILITIES DISTRICT NO. 1 OF THE CITY OF CARLSBAD THE UNDERSIGNED DOES HEREBY CERTIFY UNDER PENALTY OF PERJURY AS FOLLOWS: 1. The undersigned is the owner, or the duly authorized representative of such owner, of the real property described in Exhibit "A" attached hereto and incorporated herein by reference (the "Property"), and, in such capacity, possesses all legal authority necessary to execute this Consent and Waiver as and on behalf of the owner of the Property (the "Owner") in connection with the annexation of the Property to the District (as defined below). 2. The Owner is aware of and understands the following: A. The City of Carlsbad has conducted proceedings pursuant to the "Mello-Roos Community Facilities Act of 1982", (Government Code 9533 11 and following) (the "Act") to form a community facilities district known and designated as Community Facilities District No. 1 (the "District") to finance the following described public facilities (the "Public Facilities"): (1) Public facilities generally described as new library facility, major addition to an existing library building, a City Hall complex, and the addition of ofice and warehouse facilities at the public safety center; (2) Park improvements generally described as the Macario Canyon Park; (3) Major street improvements in portions of the following designated public streets: (a.) Faraday Avenue; (b.) Cannon Road; (c.) La Costa Avenue; (d.) (e.) Leucadia Boulevard. OlivenhaidRancho Santa Fe Road; and 1 (4) Major bridge and overpass facilities generally described as: (a.) La Costa Interchange; (b.) Poinsettia Interchange; and (c.) Palomar Airport Road Interchange. B. The City and the qualified electors of the District did authorize the issuance of bonds of the District in an aggregate principal amount of $130,000,000 subject to inflation to finance the acquisition or construction of the Public Facilities and the levy of the special tax set forth in Exhibit “B” hereto (the “Special Tax”) within the District to pay for the Public Facilities, to pay debt service on bonds of the District, or both. C. The City Council of the City (the “City Council”) has also undertaken proceedings pursuant to Article 3.5 of the Act to provide for the future annexation of certain territory, including the Property, to the District. On May 18, 1993, the City Council held a public hearing as required by the Act to consider the future annexation of such territory, including the Property, to the District. Notice of such public hearing was given in the form and manner as required by law. A protest to such future annexation was not received from 50% or more of the registered voters, or six registered voters, whichever is more, residing in the territory proposed to be annexed in the future or the owners of one-half or more of the area of land in the territory proposed to be annexed in the future. At the conclusion of such public hearing, the City Council did approve and provide for the annexation of the territory, including the Property, proposed for annexation in the future upon the unanimous approval of the owner or owners of each parcel or parcels at the time that such parcel or parcels are annexed, without additional hearings. D. The Act further requires, as a prerequisite to the levy of any special taxes within the Property or the issuance of bonds secured by such special taxes, that the City Council must submit the question of whether or not to levy any special tax within the Property to the qualified electors of the Property at a special election. The Act further provides that 2/3’s of the qualified electors must vote in favor of the levy of the special tax. E. The Act provides that the qualified electors of the Property shall be the voters registered to vote within Property if at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the Property for each of the ninety (90) days preceding the close of the public hearing to consider the annexation of the Property to the District. Otherwise, the Act provides that the vote shall be by the landowners of the Property with each such landowner who is the owner of record at the close of such public hearing, or the authorized representative of such owner, having one vote for each acre or portion of an acre of land that such landowner owns within the Property. 2 F. The provisions of the Act require that such special election be held at least ninety (90) but not more than one hundred eighty days (180) following the date of the submission of the question of levying the special tax to the qualified electors of the Property; provided, however, any such special election time limit specified by the Act or requirement pertaining to the conduct of such a special election may be waived with the unanimous consent of the qualified electors of the Property and the concurrence of the official conducting the election. As is stated below, it is proposed that the special election shall be held on Tuesday, February 24th, 2004 at 9:OO a.m. or such other date upon which all of the qualified electors of the Property and the official conducting the election may concur. 3. The Owner consents to and expressly approves the annexation of the Property to the District and the authorization for the levy of the Special Tax within the Property without hrther public hearing conducted pursuant to the provisions of the Act. The Owner waives any right which the Owner may have to make any protest or complaint or undertake any legal action challenging the validity of the proceedings of the City to authorize the hture annexation of the Property to the District or any necessity, requirement, right or entitlement for hrther public hearing pertaining to the annexation of the Property to the District and the levy of the Special Tax within the Property. 4. the ninety (90) days preceding the date of this Consent and Waiver. Owner certifies that there have been no persons residing within the Property for each of 5. Owner desires that the special election be held on Tuesday, February 24th, 2004 at 9:OO a.m. or such other date as the qualified electors and the City Clerk of the City, acting as the official conducting the election (the "City Clerk"), may mutually agree. 6. Owner expressly consents to the following: A. B. C. D. E. To the conduct of the special election on Tuesday, February 24th, 2004 at 9:OO a.m. or such other date as the qualified electors and the City Clerk may mutually agree. Owner expressly waives any right which owner may have to have the special election conducted within the time periods specified in Government Code Section 53326. Owner waives any requirement for the mailing of the election ballot. Owner hrther waives any right or entitlement which Owner may have to have the ballot for such election accompanied by arguments for or against the ballot measure and the impartial analysis as otherwise required by Government Code Section 53327, and/or the statement required by Elections Code Section 5300 and following pertaining to the issuance of bonds. Owner waives any protest, complaint or legal action of any nature whatsoever pertaining to the procedures to be undertaken for the conduct of such election, 3 including but not limited to, the shortening of all time periods pertaining to the special election, including but not limited to, the time for holding the special election and the necessity and requirement for any newspaper publication of the notice of such special election and the lack of arguments and impartial analysis. [Remainder of this page intentionally left blank.] 4 13 . PROPERTY OWNER APPOINTMENT OF AUTHORIZED REPRESENTATIVES The owner hereby appoints or 2 alternatively, as its authorized representative to vote in the subject special election, and the owner certifies that the true and exact signature of each alternative representative is set forth below: Signature-of Representative Signature of Representative (Type or Print Name of Representative) (Type or Print Name of Representative) PROPERTY OWNER DESIGNATION OF ADDRESS FOR MAILING OF MATERIALS The owner requests that all materials related to this annexation be mailed to the following address: The owner waives any right or requirement to have such materials mailed to the address shown on the assessor’s roll of the County of San Diego. 5 THIS CONSENT AND WAIVER AND. APPOINTMENT, OF REPRESENTATIVES was executed this /t day of 64-w , 'CA-. Type or Print Name of Signor If the person executing this document is not the owner of the property for which this document is being submitted but is signing for and on behalf of such owner, please fill in the name of the owner of the property on the line provided below: Manmnita PoRtneac, L. L.C. (Type or print name of the Owner) MANZANITA PARTNERS, L.L.C. a California limited liability company By: ConAm Manzanita L.P., a California limited partnership its: Managing Member By: Continental American Properties, Ltd., a California limited partnership its: General Partner By: DJE Financial Corp., a California corporation 6 C E RTI F I E D RES 0 L UTI 0 N OF DJE FINANCIAL CORP. I, E. SCOTT DUPREE, being the duly elected and acting Secretary of DJE Financial Corp., a California corporation (the "Corporation"), hereby certify that the resolutions of the Corporation set forth on Exhibit A attached hereto and incorporated herein were duly adopted by written Consent of the Sole Director of the Corporation as of August 5, 2003. I further certify that these resolutions are still in full force and effect and have not been amended, rescinded or revoked. IN WITNESS WHEREOF, I hereunto set my hand as such Secretary this 7'h day of January 2004. '. CONSENT OF THE SOLE DIRECTOR OF DJE FINANCIAL CORP. The undersigned, being the sole Director of DJE FINANCIAL CORP., a California corporation (the "Corporation"), hereby consent to the following action: BE IT RESOLVED, that any one of Daniel J. Epstein (President), J. Bradley Forrester, Robert J. Svatos, Ralph W. Tilley or E. Scott Dupree, (Vice Presidents) acting alone, in his respective capacity as President or Vice President of the Corporation ("Authorized Officer"), is hereby authorized and directed on behalf of the Corporation in the Corporation's capacity as a general partner in Continental American Properties, Ltd., a California limited partnership ("CAPL"), the general partner of ConAm Manzanita L.P., A California limited partnership, ("ConAm"), the Managing Member of Manzanita Partners, L.L.C., A California limited liability company ("Manzanita"), to execute and deliver any and all documents and take any other necessary action for the development and construction of the planned 157 unit multifamily residential project to be built on land owned by Manzanita located at Cassia and El Camino Real in the City of Carlsbad (the "Project"), including, but not limited to the documents set forth on Exhibit A attached hereto, and all other necessary documents required by the City of Carlsbad and any utility companies servicing this Project such as the dedication of certain rights of way, easements, disclosures, letters of permission, site development plans or permits or open space designations (the "Development Documents"). BE IT FURTHER RESOLVED, that the Development Documents shall be in such form and shall contain such terms and conditions as may be approved by the Authorized Officer as completely as though the Development Documents were attached to this Consent and approved verbatim, it being the intention of the sole director to delegate to the Authorized officer full power and authority to negotiate the terms, conditions and provisions of each of the Development Documents in the Corporation's capacity as the general partner of the general partner of the managing member of Manzanita: and BE IT FURTHER RESOLVED, that the Authorized Officer, acting alone, is hereby authorized to subscribe the Corporation's name to any and all of the Development Documents, in the Corporation's capacity as the general partner of the general partner of the managing member of Manzanita, hereby vesting in the Authorized Officer the widest possible discretion with respect to the conduct of corporate business in connection with the Property. EXhiBlT A BE IT FURTHER RESOLVED, that the Authorized Officer may execute all of the Development Documents as set forth above, and any other documents required in connection with the Property, and that all such instruments executed shall be the binding acts and deeds of the Corporation, without the necessity of attestation by the secretary or any assistant secretary of the Corporation, and without the corporate seal being affixed thereto. BE IT FURTHER RESOLVED, that any prior acts of the Authorized Officers in connection with the Development Documents on behalf of Manzanita are hereby ratified and approved and that the City of Carlsbad and any other patty to the Development Documents shall be entitled to act in reliance upon the matters herein contained without further inquiry of any kind. IN WITNESS WHEREOF, the sole director of the Corporation has subscribed his name to this Consent as of the may of August 2003. Kaniel J. pstein, rector 2 EXHIBIT A Ownership : Manzanita Partners, LLC DESCRIPTION OF PROPERTY Assessor Parcel Number(s): Acreage: 2 1 5-020- 13 -00 3 1.65 The Property is identified and described as: 2 15-020-22-00 2 15-02 1-04-00 5.77 I 5.96 A EXHIBIT “B” RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 1 CITY OF CARLSBAD B EXHIBIT “B” RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 1 CITY OF CARLSBAD PROPERTY CATEGORIES AND MAXIMUM TAX All taxable property within the boundaries of the Future Annexation Area shall be subject to ANNUAL SPECIAL TAXES as applicable based upon the rates as established for the original Community Facilities District No. 1 and further based upon the property categories, maximum tax rates, increases and status of the issuance of building permits, all as hereinafter set forth. Improvement Area I refers to all properties within the boundaries of the City of Carlsbad Bridge and Thoroughfare District. Improvement Area II is for all remaining properties within the Community Facilities District, not within the Bridge and Thoroughfare District. RESIDENTIAL PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable property prior to the issuance of a building permit shall be subject to the following maximum annual special taxes, subject to increases as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA II Residential Low $ 281.00 Residential Low to Medium 772.00 Residential Medium 1,294.00 Residential Medium to High 1,984.00 Residential High 2,793.00 $ 277.00 760.00 1,217.00 1,868.00 2,739.00 SPECIAL DEVELOPMENT TAX - ONE TIME Upon the issuance of a building permit, all Residential properties shall be subject to the following described SPECIAL DEVELOPMENT TAX - ONE TIME, also subject to increases as set forth herein, as follows: MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME PER RESIDENTIAL DWELLING UNIT FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA II Residential Low $ 4,452.00 Residential Low to Medium 4,452.00 Residential Medium 2,810.00 Residential Medium to High 2,810.00 Residential High 2,810.00 $ 3,835.00 3,835.00 2,312.00 2,312.00 2,312.00 COMMERCIAL, INDUSTRIAL AND OTHER PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable Commercial and Industrial Property prior to the issuance of a building permit shall be subject to the following maximum annual special taxes, also subject to increases as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT AREA I AREA II Commercial Property $ 2,400.00 $ 1,600.00 Industrial Property 1,200.00 960.00 Agricultural Property -0- -0- All Commercial and Industrial Property, upon the issuance of a building permit, shall have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) assume the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY for a period of not to exceed twenty-five (25) years, generally in the amounts per property category as follows: B-2 MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME FOR FISCAL YEAR 1990/91 PER SQUARE FOOT OF BUILDING AREA PROPERTY CATEGORY COMMERCIAL USE DES I G N AT1 0 N S Restaurant - Fast Food Outdoor Tennis Courts Convenience Market Bank with Drive-thru Campground Restaurant - Sit Down Marina Bank - Walk In Auto - Gasoline Grocery Store S & L with Drive-thru Bowling Center Restaurant - Quality Neighborhood Shopping Center Auto Car Wash S & L - Walk In Race Track Library Community Shopping Center Hospital - General Hotel - Conv. Fac/Comm. Auto - Repair & Sales Regional Shopping Center Discount Store Golf Course Church Office - Government Commercial Shops Health Club Motel Office - High Rise IMPROVEMENT AREA I $ 28.46 28.14 27.31 18.06 17.51 15.17 14.85 12.83 8.1 1 7.78 7.59 6.63 6.57 6.46 6.31 5.51 5.10 4.26 4.24 3.88 3.47 3.41 3.35 3.22 3.06 2.99 2.93 2.90 2.89 2.69 2.67 Office - Commercial, 100,000 SF 2.56 LumbedHardware Store 2.47 Office - Medical 2.42 Hospital - Convalescent 2.33 Indoor Sports Arena 2.33 IMPROVEMENT AREA I1 $ 7.58 7.26 6.74 5.72 4.99 4.73 4.41 4.60 2.89 2.56 3.48 2.83 3.09 2.27 2.52 3.03 2.33 2.86 1.80 3.18 2.52 1.58 I .61 1.58 2.14 1.94 1.88 1.58 1.85 2.06 1.84 1.75 1.58 2.07 2.23 2.23 B-3 PROPERTY CATEGORY COMMERCIAL USE IMPROVEMENT DES I G N AT1 0 N S AREA I Resort Hotel University Junior College 2.30 2.26 2.19 All other Commercial Properties not identified above 2.14 INDUSTRIAL USE IMPROVEMENT DES I G NATl 0 N S AREA I Heliports $ 10.63 Industrial-Commercial Business Park 2.14 All other Industrial Properties not identified above 1.74 IMPROVEMENT AREA II 1.98 1.91 1.90 1.44 IMPROVEMENT AREA I1 $ 3.67 1.51 1.42 OR, IN THE ALTERNATE, ANNUAL SPECIAL TAX The “Maximum Annual Special Tax - Developed Property” for any Fiscal Year shall not exceed 13.81 % of the authorized “Maximum Special Development Tax - One Time” for the various Commercial and Industrial Property categories as set forth above in the amount applicable and annually adjusted for each Fiscal Year. ANNUAL TAX INCREASE The above SPECIAL TAXES for the taxable properties are applicable for the fiscal year 1990/91, and are all subject to annual increases to reflect increases in construction costs. The Construction Cost Index of the Enqineerinq News-Record, titled “ENR Cost Indexes in 22 Cities” will be used. The Index published for the month of April for the City of Los Angeles under the column heading of “Percentage Change from Last Year” will annually inflate each of the Maximum Annual Taxes for each year for properties as follows: B -4 2/ , A. PROPERTIES WITHIN THE DISTRICT: Not to exceed 50% of the above-referenced increase. B. PROPERTIES TO BE SUBSEQUENTLY ANNEXED: Not to exceed 100% of the above-referenced increase until annexed. TERM OF TAX The above taxes shall be levied until all bonds have been discharged and facilities funded and/or guaranteed, and the SPECIAL DEVELOPMENT TAX - ONE TIME has been paid; however, the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY shall not be levied for a period in excess of twenty-five (25) years per parcel. Residential : Once a building permit has been issued for Residential property and the SPECIAL DEVELOPMENT TAX - ONE TIME has been paid, the property no longer will be subject to any annual special tax. Commercial and Industrial: The Commercial and Industrial properties, upon the issuance of a building permit, have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) assume the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY, as set forth above. Upon the issuance of any building permit, no further increase or escalation is authorized. ALLOCATION OF COST AND TAX Total capital costs for all authorized facilities shall be allocated as follows: 65% to Residential property, 35% to Commercial and Industrial property. The above costs exclude costs of issuance as needed. Residential propertv shall be taxed in an amount sufficient to meet the 65% share of facilities, which tax will include costs of issuance, interest and other costs, including sinking fund payments for future construction as applicable. Commercial and Industrial property shall be taxed in an amount sufficient to meet the 35% share of facilities, which tax will include costs of issuance, interest and other costs, including sinking fund payments for future construction as applicable. B-5 as COLLECTION OF ANNUAL TAX Residential: Determine monies necessary to make payment on bond debt service, replenish reserve, call bonds, pay bonds and Community Facilities District No. 1 administrative costs, and pay for public capital facilities. FIRST: Reduce this amount by the funds collected from Special Development Tax - One Time levied against residential properties. SECOND: The remaining funds needed are to be collected by the levy of the annual Special Tax - Undeveloped Property on undeveloped taxable residential acreage, in the proportional amounts of each property category as required, not to exceed the maximum authorized tax. Commercial and Industrial: Determine monies necessary to make payment on bond debt service, replenish reserve, call bonds, pay bonds, and Community Facilities District No. 1 administrative costs, and pay for current or future public capital facilities. FIRST: Reduce this amount by the funds collected from Special Development Tax - One Time and annual Special Tax - Developed Property levied against Commercial and Industrial properties. SECOND: Levy the annual Special Tax - Undeveloped Property on undeveloped taxable Commercial and Industrial acreage in the proportional amounts for each property category as required, not to exceed the maximum tax. *** B-6 Exhibit 3 NOT IDENTIFIED ABOVE CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 SPEClAL DEVELOPMENT TAX- ONE-TIME IMPROVEMENT AREA I $1.6343 ANNEXED I1 11 FY2003-04 1 FORMATION OR ANNEXATION DATE: NOTE 1: mis CATEGORY OF LAND USE CONTAINS PM AND CM ZONED PROPERTY. NOTE 2: THIS CATEGORY OF LAND USE CONTAINS M AND PU ZONED PROPERTY. Page 1 of 2 27 CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 ANNUAL SPECIAL TAX UNDEVELOPED PROPERTY NON-RESIDENTIAL UNDEVELOPED LAND USE: COMMERCIAL PROPERTY INDUSTRIAL PROPERTY AGRICULTURAL PROPERTY I VALID JULY 1,2003 TO JUNE 30,2004 I PER NET ACRE $3,054.691 3 $1,527.3456 5O.ooOO I ANNEXATION I I FORMATION OR ANNEXATION DATE: I FY2003-04 RESIDEN 1 Page 2 of 2 Exhibit 4 WHEN RECORDED, RETURN TO: CITY CLERK CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CA 92008 AMENDMENT TO THE NOTICE OF SPECIAL TAX LEN (NOTICE OF ANNEXATION NO. 03/04-01) Pursuant to the requirements of Section 3 1 17.5 of the Streets and Highways Code and Section 53339.8 of the Government Code, the undersigned City Clerk of the City of Carlsbad, acting for and on behalf of Community Facilities District No. 1 (the “District”), State of California, HEREBY GIVES NOTICE that a lien is hereby imposed on certain real property annexed to the District to secure payment of a special tax which the City Council of the City of Carlsbad, County of San Diego, State of California, acting in its authority as the legislative body of the District, is authorized to annually levy for the following purpose: To pay for certain public capital facilities including the payment of principal and interest on bonds, said facilities generally described as follows: (1) Public facilities generally described as new library facility, major addition to an existing library building, a City Hall complex, and the addition of office and warehouse facilities at the public safety center; (2) Park improvements generally described as the Macario Canyon Park; (3) Major street improvements in portions of the following designated public streets: (a.) Faraday Avenue; (b.) Cannon Road; (c.) La Costa Avenue; (d.) (e.) Leucadia Boulevard. OlivenhainiRancho Santa Fe Road; and (4) Major bridge and overpass facilities generally described as: (a.) La Costa Interchange; (b.) Poinsettia Interchange; and (c.) Palomar Airport Road Interchange. The special tax is authorized to be levied on the property described in Exhibit “A” attached hereto (the “Annexed Property”) which has been annexed to Community Facilities District No. 1, and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and cancelled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. The rate and method of apportionment of the authorized special tax is as shown on the attached, referenced and incorporated Exhibit “B”, and the special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes. Conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax cancelled are as follows: Any special tax may be prepaid and satisfied by the payment of the maximum present value of the special tax obligation. Notice is hrther given that upon the recording of this notice in the Office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon the Annexed Property in accordance with Section 3 1 15.5 of the Streets and Highways Code. The names of the owner(s) of the Annexed Property as they appear on the last secured assessment roll as of the date of recording of this Notice and the Assessor’s tax parcel(s) numbers of all parcels or any portion thereof which are included within the Annexed Property are as set forth on the attached, referenced and incorporated Exhibit “A”. Reference is made to the following: 1. Notice of Special Tax Lien for the original Community Facilities District recorded May 20, 1991 as Document No. 91-236959, in the Office of the County Recorder for the County of San Diego, State of California, which Notice is amended by the recordation of this document.. 2. 6741 18, Maps of Assessment and Community Facilities Districts in the Office of the County Recorder for the County of San Diego, State of California. Boundary map of the original District recorded at Book 24, Page 56, Document No. 90- 3. the Office of the County Recorder for the County of San Diego, State of California. Boundary map of Annexation Area No. 03/04-01 recorded at Book Y Page , Document No. , Maps of Assessment and Community Facilities Districts in For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the following designated person: Lisa Hildabrand, Finance Director City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Telephone: (760) 602-2490 30 DATED: April 20 ,2004 state of California CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 PROPERTY OWNER NAMES AND ASSESSORS PARCEL NUMBERS "EXHIBIT A" Property Owner: Assessor's Parcel No.: Manzanita Partners, LLC, a California Limited Liability Company 215-020-13-00 2 15-020-22-00 2 15-02 1-04-00 CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 RATE AND METHOD OF APPORTIONMENT EXHIBIT “B” PROPERTY CATEGORIES AND MAXIMUM TAX All taxable property within the boundaries of the Future Annexation Area shall be subject to ANNUAL SPECIAL TAXES as applicable based upon the rates as established for the original Community Facilities District No. 1 and further based upon the property categories, maximum tax rates, increases and status of the issuance of building permits, all as hereinafter set forth. Improvement Area I refers to all properties within the boundaries of the City of Carlsbad Bridge and Thoroughfare District. Improvement Area II is for all remaining properties within the Community Facilities District, not within the Bridge and Thoroughfare District. RESIDENTIAL PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable property p rior to the i ssuance of a building permit shall be subject to the following maximum annual special taxes, subject to increases as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT PROP E RTY CATEGORY AREA I AREA II Residential Low $ 281.00 Residential Low to Medium 772.00 Residential Medium 1,294.00 Residential Medium to High 1,984.00 Residential High 2,793.00 $ 277.00 760.00 1,217.00 1,868.00 2,739.00 SPECIAL DEVELOPMENT TAX - ONE TIME Upon the issuance of a building permit, all Residential properties shall be subject to the following described SPECIAL DEVELOPMENT TAX - ONE TIME, also subject to increases as set forth herein, as follows: MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME PER RESIDENTIAL DWELLING UNIT FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA II Residential Low $ 4,452.00 Residential Low to Medium 4,452.00 Residential Medium 2,810.00 Residential Medium to High 2,810.00 Residential High 2,810.00 $ 3,835.00 3 , 835 .OO 2,3 12 .OO 2,312.00 2,3 1 2 .OO COMMERCIAL, INDUSTRIAL AND OTHER PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable Commercial and Industrial Property prior to the issuance of a building permit shall be subject to the following maximum annual special taxes, also subject to increases as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT AREA I AREA II Commercial Property $ 2,400.00 $ 1,600.00 Industrial Property 1,200.00 960.00 Ag ricu I tu ral Property -0- -0- All Commercial and Industrial Property, upon the issuance of a building permit, shall have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) assume the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY for a period of not to exceed twenty-five (25) years, generally in the amounts per property category as follows: MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME FOR FISCAL YEAR 1990/91 PER SQUARE FOOT OF BUILDING AREA PROPERTY CATEGORY COMMERCIAL USE DES I G N AT IO NS Restaurant - Fast Food Outdoor Tennis Courts Convenience Market Bank with Drive-thru Campground Restaurant - Sit Down Marina Bank - Walk In Auto - Gasoline Grocery Store S & L with Drive-thru Bowling Center Restaurant - Quality Neighborhood Shopping Center Auto Car Wash S & L - Walk In Race Track Library Community Shopping Center Hospital - General Hotel - Conv. FaclComm. Auto - Repair & Sales Regional Shopping Center Discount Store Golf Course Church Office - Government Commercial Shops Health Club Motel Office - High Rise IMPROVEMENT AREA I $ 28.46 28.14 27.31 18.06 17.51 15.17 14.85 12.83 8.1 1 7.78 7.59 6.63 6.57 6.46 6.31 5.51 5.10 4.26 4.24 3.88 3.47 3.41 3.35 3.22 3.06 2.99 2.93 2.90 2.89 2.69 2.67 Office - Commercial, I OO,OOO SF 2.56 Lu m berlH a rdwa re Store 2.47 Office - Medical 2.42 Hospital - Convalescent 2.33 Indoor Sports Arena 2.33 IMPROVEMENT AREA II $ 7.58 7.26 6.74 5.72 4.99 4.73 4.41 4.60 2.89 2.56 3.48 2.83 3.09 2.27 2.52 3.03 2.33 2.86 1.80 3.18 2.52 1.58 I .61 I .58 2.14 1.94 1.88 1.58 1.85 2.06 1.84 1.75 1.58 2.07 2.23 2.23 PROPERTY CATEGORY COMMERCIAL USE IMPROVEMENT IMPROVEMENT DES I GNAT I ONS AREA I AREA II Resort Hotel U n ive rsity Junior College 2.30 2.26 2.19 All other Commercial Properties not identified above 2.14 1.98 1.91 1.90 1.44 INDUSTRIAL USE IMPROVEMENT IMPROVEMENT DES I G N AT IO N S AREA I AREA II Heliports $ 10.63 $ 3.67 Industrial-Commercial Business Park 2.14 1.51 All other Industrial Properties not identified above 1.74 1.42 OR, IN THE ALTERNATEl ANNUAL SPECIAL TAX The “Maximum Annual Special Tax - Developed Property” for any Fiscal Year shall not exceed 13.81 O!O of the authorized “Maximum Special Development Tax - One Time” for the various Commercial and Industrial Property categories as set forth above in the amount applicable and annually adjusted for each Fiscal Year. ANNUAL TAX INCREASE The above SPECIAL TAXES for the taxable properties are applicable for the fiscal year 1990/91, and are all subject to annual increases to reflect increases in construction costs. The Construction Cost Index of the Enqineering News-Record, titled “ENR Cost Indexes in 22 Cities” will be used. The Index published for the month of April for the City of Los Angeles under the column heading of “Percentage Change from Last Year” will annually inflate each of the Maximum Annual Taxes for each year for properties as follows: A. PROPERTIES WITHIN THE DISTRICT: Not to exceed 50% of the above- refe renced increase. B. PROPERTIES TO BE SUBSEQUENTLY ANNEXED: Not to exceed 100% of the above-referenced increase until annexed. TERM OF TAX The above taxes shall be levied until all bonds have been discharged and facilities funded and/or guaranteed, and the SPECIAL DEVELOPMENT TAX - ONE TIME has been paid; however, the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY shall not be levied for a period in excess of twenty-five (25) years per parcel. Residential : Once a building permit has been issued for Residential property and the SPECIAL DEVELOPMENT TAX - ONE TIME has been paid, the property no longer will be subject to any annual special tax. Commercial and Industrial: The Commercial and Industrial properties, upon the issuance of a building permit, have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) assume the ANNUAL S PECIAL TAX - D EVELOPED PROPERTY, as set forth above. U pon the issuance of any building permit, no further increase or escalation is authorized. ALLOCATION OF COST AND TAX Total capital costs for all authorized facilities shall be allocated as follows: 65% to Residential property, 35% to Commercial and Industrial property. The above costs exclude costs of issuance as needed. Residential propertv shall be taxed in an amount sufficient to meet the 65% share of facilities, which tax will include costs of issuance, interest and other costs, including sinking fund payments for future construction as applicable. Commercial and Industrial property shall be taxed in an amount sufficient to meet the 35% share of facilities, which tax will include costs of issuance, interest and other costs, including sinking fund payments for future construction as applicable. ‘3 3 7 COLLECTION OF ANNUAL TAX Res id entia I: Determine monies necessary to make payment on bond debt service, replenish reserve, call bonds, pay bonds and Community Facilities District No. I administrative costs, and pay for public capital facilities. FIRST: Reduce this amount by the funds collected from Special Development Tax - One Time levied against residential properties. SECOND: The remaining funds needed are to be collected by the levy of the annual Special Tax - Undeveloped Property on undeveloped taxable residential acreage, in the proportional amounts of each property category as required, not to exceed the maximum authorized tax. Commercial and Industrial: Determine monies necessary to make payment on bond debt service, replenish reserve, call bonds, pay bonds, and Community Facilities District No. 1 administrative costs, and pay for current or future public capital facilities. FIRST: Reduce this amount by the funds collected from Special Development Tax - One Time and annual Special Tax - Developed Property levied against Commercial and Industrial properties. SECOND: Levy the annual Special Tax - Undeveloped Property on undeveloped taxable Commercial and Industrial acreage in the proportional amounts for each property category as required, not to exceed the maximum tax. *** .. P \ APR 229 2004 12:oo PM SAN DIEGO COUNTY RECORDER’S OFFICE OFFICIAL fieWKDs WHEN RECORDED, RETURN TO: CITY CLERK 1200 CARLSBAD VILLAGE DRIVE ID I’ CARLSBAD, CA 92008 GREGORY J. SMITH? COUNTY REGORDER 16994 ‘ I 1 CITY OF CARLSBAD FEES: 35.00 rv) AMENDMENT TO THE NOTICE OF SPECIAL TAX LIEN (NOTICE OF ANNEXATION NO. 03/04-01) Pursuant to the requirements of Section 31 17.5 of the Streets and Highways Code and Section 53339.8 of the Government Code, the undersigned City Clerk of the City of Carlsbad, acting for and on behalf of Community Facilities District No. 1 (the “District”), State of California, HEREBY GIVES NOTICE that a lien is hereby imposed on certain real property annexed to the District to secure payment of a special tax which the City Council of the City of Carlsbad, County of San Diego, State of California, acting in its authority as the legislative body of the District, is authorized to annually levy for the following purpose: To pay for certain public capital facilities including the payment of principal and interest on bonds, said facilities generally described as follows: (1) Public facilities generally described as new library facility, major addition to an existing library building, a City Hall complex, and the addition of office and warehouse facilities at the public safety center; (2) Park improvements generally described as the Macario Canyon Park; (3) Major street improvements in portions of the following designated public streets: (a.) Faraday Avenue; (b.) Cannon Road; (c.) La Costa Avenue; (d.) (e.) Leucadia Boulevard. OlivenhainRancho Santa Fe Road; and (4) Major bridge and overpass facilities generally described as: (a.) La Costa Interchange; (b.) Poinsettia Interchange; and (c.) Palomar Airport Road Interchange. The special tax is authorized to be levied on the property described in Exhibit “A” attached hereto (the “Annexed Property”) which has been annexed to Community Facilities District No. 1 , and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, a? 16995 permanently satisfied and cancelled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. . The rate and method of apportionment of the authorized special tax is as shown on the attached, referenced and incorporated Exhibit “B”, and the special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes. Conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax cancelled are as follows: Any special tax may be prepaid and satisfied by the payment of the maximum present value of the special tax obligation. Notice is further given that upon the recording of this notice in the Office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon the Annexed Property in accordance with Section 3 115.5 of the Streets and Highways Code. The names of the owner(s) of the Annexed Property as they appear on the last secured assessment roll as of the date of recording of this Notice and the Assessor’s tax parcel(s) numbers of all parcels or any portion thereof which are included within the Annexed Property are as set forth on the attached, referenced and incorporated Exhibit “A”. Reference is made to the following: 1. Notice of Special Tax Lien for the original Community Facilities District recorded May 20, 1991 as Document No. 91-236959, in the Office of the County Recorder for the County of San Diego, State of California, which Notice is amended by the recordation of this document.. 2. 6741 18, Maps of Assessment and Community Facilities Districts in the Office of the County Recorder for the County of San Diego, State of California. Boundary map of the original District recorded at Book 24, Page 56, Document No. 90- 3. Boundary map of Annexation Area No. 03/04-01 recorded at Book 58 , Page the Office of the County Recorder for the County of San Diego, State of California. 2- - , Document No.o35,~~4., Maps of Assessment and Community Facilities Districts in For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the following designated person: Lisa Hildabrand, Finance Director City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Telephone: (760) 602-2490 30 t 16996 DATED: April 20 ,2004 City of Carlsb State of California 16997 CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 PROPERTY OWNER NAMES AND ASSESSORS PARCEL NUMBERS "EXHIBIT A" Property Owner: Assessor's Parcel No.: Manzanita Partners, LLC, a California Limited Liability Company 215-020-13-00 2 1 5-020-22-00 2 15-02 1-04-00 16998 CITY OF CARLSBAD COMMUNITY FACILITIES DISTRICT NO. 1 RATE AND METHOD OF APPORTIONMENT EXHIBIT “B” PROPERTY CATEGORIES AND MAXIMUM TAX All taxable property within the boundaries of the Future Annexation Area shall be subject to ANNUAL SPECIAL TAXES as applicable based upon the rates as established for the original Community Facilities District No. 1 and further based upon the property categories, maximum tax rates, increases and status of the issuance of building permits, all as hereinafter set forth. Improvement Area I refers to all properties within the boundaries of the City of Carlsbad Bridge and Thoroughfare District. Improvement Area II is for all remaining properties within the Community Facilities District, not within the Bridge and Thoroughfare District. RESIDENTIAL PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable p roperty p rior to t he i ssuance of a b uilding permit shall be subject to the following maximum annual special taxes, subject to increases as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR I99011991 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA II Residential Low $ 281.00 Residential Low to Medium 772.00 Residential Medium 1,294.00 Residential Medium to High 1,984.00 Residential High 2,793.00 $ 277.00 760.00 1,217.00 1,868.00 2,739.00 SPECIAL DEVELOPMENT TAX - ONE TIME Upon the issuance of a building permit, all Residential properties shall be subject to the following described SPECIAL DEVELOPMENT TAX - ONE TIME, also subject to increases as set forth herein, as follows: MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME PER RESIDENTIAL DWELLING UNIT FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT PROPERTY CATEGORY AREA I AREA II Residential Low $ 4,452.00 Residential Low to Medium 4,452.00 Residential Medium 2,810.00 Residential Medium to High 2,810.00 Residential High 2,810.00 $ 3,835.00 3,835.00 2,312.00 2,312.00 2,312.00 COMMERCIAL, INDUSTRIAL AND OTHER PROPERTY ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY All taxable Commercial and Industrial Property prior to the issuance of a building permit shall be subject to the following maximum annual special taxes, also subject to increases as set forth herein: MAXIMUM ANNUAL SPECIAL TAX - UNDEVELOPED PROPERTY PER DEVELOPABLE ACRE FOR FISCAL YEAR 1990/1991 IMPROVEMENT IMPROVEMENT AREA I AREA II Co m me rci al Pro pe rty $ 2,400.00 Industrial Property 1,200.00 $ 1,600.00 960.00 Agricultural Property -0- -0- All Commercial and Industrial Property, upon the issuance of a building permit, shall have the option to (I) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) assume the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY for a period of not to exceed twenty-five (25) years, generally in the amounts per property category as follows: MAXIMUM SPECIAL DEVELOPMENT TAX - ONE TIME FOR FISCAL YEAR 1990/91 PER SQUARE FOOT OF BUILDING AREA PROPERTY CATEGORY COMMERCIAL USE DES I G N AT1 0 N S Restaurant - Fast Food Outdoor Tennis Courts Convenience Market Bank with Drive-thru Campground Restaurant - Sit Down Marina Bank - Walk In Auto - Gasoline Grocery Store S & L with Drive-thru Bowling Center Restaurant - Quality Neighborhood Shopping Center Auto Car Wash S & L -Walk In Race Track Library Community Shopping Center Hospital - General Hotel - Conv. Fac/Comm. Auto - Repair & Sales Regional Shopping Center Discount Store Golf Course Church Office - Government Commercial Shops Health Club Motel Office - High Rise Office - Commercial, 100,000 SF Lumber/Hardware Store Office - Medical Hospital - Convalescent Indoor Sports Arena IMPROVEMENT AREA I $ 28.46 28.14 27.31 18.06 17.51 15.17 14.85 12.83 8.1 1 7.78 7.59 6.63 6.57 6.46 6.31 5.51 5.10 4.26 4.24 3.88 3.47 3.41 3.35 3.22 3.06 2.99 2.93 2.90 2.89 2.69 2.67 2.56 2.47 2.42 2.33 2.33 IMPROVEMENT AREA II $ 7.58 7.26 6.74 5.72 4.99 4.73 4.41 4.60 2.89 2.56 3.48 2.83 3.09 2.27 2.52 3.03 2.33 2.86 1.80 3.18 2.52 1.58 1.61 1.58 2.14 1.94 1.88 1.58 I .85 2.06 1.84 1.75 1.58 .2.07 2.23 2.23 35 PROPERTY CATEGORY COMMERCIAL USE IMPROVEMENT IMPROVEMENT DES I G N AT1 0 N S AREA I AREA II Resort Hotel University Junior College 2.30 2.26 2.19 All other Commercial Properties not identified above 2.14 1.98 1.91 1.90 1.44 INDUSTRIAL USE IMPROVEMENT IMPROVEMENT D E S I G N AT I 0 N S AREA I AREA II Heliports $ 10.63 $ 3.67 I ndustrial-Commercial Business Park 2.14 1.51 All other Industrial Properties not identified above 1.74 1.42 OR, IN THE ALTERNATE, ANNUAL SPECIAL TAX The “Maximum Annual Special Tax - Developed Property” for any Fiscal Year shall not exceed 13.81 YO of the authorized “Maximum Special Development Tax - One Time” for the various Commercial and Industrial Property categories as set forth above in the amount applicable and annually adjusted for each Fiscal Year. ANNUAL TAX INCREASE The above SPECIAL TAXES for the taxable properties are applicable for the fiscal year 1990/91, and are all subject to annual increases to reflect increases in construction costs. The Construction Cost Index of the Enqineerinq News-Record, titled “ENR Cost Indexes in 22 Cities” will be used. The Index published for the month of April for the City of Los Angeles under the column heading of “Percentage Change from Last Year’’ will annually inflate each of the Maximum Annual Taxes for each year for properties as follows: 17002 A. PROPERTIES WITHIN THE DISTRICT: Not to exceed 50% of the above-referenced increase. B. PROPERTIES TO BE SUBSEQUENTLY ANNEXED: Not to exceed 100% of the above-referenced increase until annexed. TERM OF TAX The above taxes shall be levied until all bonds have been discharged and facilities funded andlor guaranteed, and the SPECIAL DEVELOPMENT TAX - ONE TIME has been paid; however, the ANNUAL SPECIAL TAX - DEVELOPED PROPERTY shall not be levied for a period in excess of twenty-five (25) years per parcel. Residential: Once a building permit has been issued for Residential property and the SPECIAL DEVELOPMENT TAX - ONE TIME has been paid, the property no longer will be subject to any annual special tax. Commercial and Industrial: The Commercial and Industrial properties, upon the issuance of a building permit, have the option to (1) pay the SPECIAL DEVELOPMENT TAX - ONE TIME or (2) assume the ANNUAL S PECIAL TAX - D EVELOPED P ROPERTY, as set forth a bove. U pon the issuance of any building permit, no further increase or escalation is authorized. ALLOCATION OF COST AND TAX Total capital costs for all authorized facilities shall be allocated as follows: 65% to Residential property, 35% to Commercial and Industrial property. The above costs exclude costs of issuance as needed. Residential propertv shall be taxed in an amount sufficient to meet the 65% share of facilities, which tax will include costs of issuance, interest and other costs, including sinking fund payments for future construction as applicable. Commercial and Industrial property shall be taxed in an amount sufficient to meet the 35% share of facilities, which tax will include costs of issuance, interest and other costs, including sinking fund payments for future construction as applicable. 37 17003 COLLECTION OF ANNUAL TAX Residential: Determine monies necessary to make payment on bond debt service, replenish reserve, call bonds, pay bonds and Community Facilities District No. I administrative costs, and pay for public capital facilities. FIRST: Reduce this amount by the funds collected from Special Development Tax - One Time levied against residential properties. SECOND: The remaining funds needed are to be collected by the levy of the annual Special Tax - Undeveloped Property on undeveloped taxable residential acreage, in the proportional amounts of each property category as required, not to exceed the maximum authorized tax. Commercial and Industrial: Determine monies necessary to make payment on bond debt service, replenish reserve, call bonds, pay bonds, and Community Facilities District No. 1 administrative costs, and pay for current or future public capital facilities. FIRST: Reduce this amount by the funds collected from Special Development Tax - One Time and annual Special Tax - Developed Property levied against Commercial and Industrial properties. SECOND: Levy the annual Special Tax - Undeveloped Property on undeveloped taxable Commercial and Industrial acreage in the proportional amounts for each property category as required, not to exceed the maximum tax. ***