HomeMy WebLinkAbout2007-08-14; City Council; 19136; Western Pacific Housing agreementCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
19,136
08/14/07
FIN
AUTHORIZE A PREPAYMENT
AGREEMENT BETWEEN CITY OF
CARLSBAD AND WESTERN PACIFIC
HOUSING, INC.
DEPT. HEAD i&,*
CITY ATTY. K&Z
CITY MGFfT^-^^
RECOMMENDED ACTION:
Adopt Resolution No. 2007-225 authorizing the Mayor to execute a prepayment agreement
between the City of Carlsbad and Western Pacific Housing, Inc. for the La Costa Ridge 2.6 (CT
05-13).
ITEM EXPLANATION:
One of Council's strategic goals is to provide and maintain a multi-modal transportation system
that moves goods, services, and people throughout Carlsbad in a safe and efficient manner.
This is reflected in the Growth Management Plan which requires each zone within the City to
complete a Local Facilities Management Plan identifying how the zone will furnish the
necessary public facilities to serve its needs.
For a number of years, staff has worked with property owners in Local Facilities Management
Zones 11,12 and a small portion of 6, to form a Community Facilities District (CFD) to finance
the construction of Rancho Santa Fe Road and Olivenhain Road improvements, as required by
the Local Facilities Management Plan for these zones. This CFD (known as CFD No. 2) was
intended to provide the property owners and the City with a feasible financing tool that could
guarantee that funds would be available for the construction of the roads, when needed. The
delays in the formation of the CFD proved to be a major problem for some of the property
owners in the area who had met all of the non-circulation conditions placed on their maps.
Beginning in late 1993, Council began allowing property owners to prepay their obligation under
CFD No. 2 in exchange for an agreement. This agreement provides the City with: (1) the
support of the property owner in the formation of CFD No. 2; and (2) funds to begin work on the
most critical portions of the circulation plans.
Since that time, a number of agreements have been approved by Council and paid their fair
share amount. This has allowed the design and construction of the road improvements to
commence. Five major road projects are financed through funds generated by the proposed
CFD No. 2. These include: Olivenhain Road from Amargosa Drive to El Camino Real, which is
complete; Rancho Santa Fe Road from Olivenhain Road south into Encinitas, which was
completed by Continental Homes developer of the Shelley property; the intersection of Rancho
Santa Fe Road and Olivenhain Road including the completion of the Olivenhain Road
improvements between Rancho Santa Fe Road and Los Pinos Circle, which is nearing initiation
DEPARTMENT CONTACT: Lisa Irvine 760-602-2430 lirvin@.ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION:APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
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D
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
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of construction; Rancho Santa Fe Road Phase I from La Costa Avenue to San Elijo Road which
has been completed: and, Rancho Santa Fe Road Phase II from San Elijo Road to Melrose Drive,
which has been completed.
This agenda bill is requesting approval for the project being developed by Western Pacific
Housing, Inc. to prepay their CFD No. 2 obligation. The project is located in Zone 11 as shown
on the attached location map. The prepayment agreement is for construction of La Costa
Ridge 2.6, 53 residential housing units. This agreement would allow the project to proceed
through the approval process by providing a means for meeting circulation system financing
requirements found in the Local Facilities Management Plan for Zone 11.
The agreement allows the developer to pay a fixed fee per housing unit, thereby meeting their
obligation to participate in the funding of the Zone 11 circulation system. Previous agreements
authorized by Council made two significant findings. First, that the prepayment of the property
owner's fair share represents an adequate financing guarantee under the Growth Management
Program. This finding is based on the special case assumption that a CFD could be formed,
and it is the CFD, which actually provides the financing guarantee. The second finding is that
the project does not create a major impact on the existing circulation facilities. The City
Engineer agrees with these findings as they relate to this project.
FISCAL IMPACT:
The funding of the Rancho Santa Fe and Olivenhain Road projects has been a major concern
for the City and the property owners for many years. The total project costs are projected to
total over $50 million and affects the development of about 2,400 acres of land in southeast
Carlsbad.
Payment for the project will come from prepayments of, and taxes collected under, CFD No. 2 if
it is created, as well as a contribution of $6 million from CFD No. 1. The La Costa Ridge 2.6
residential development will contribute approximately $543,250 to the CFD No. 2 fund to pay
their fair share of the project costs, which are estimated at $10,250 per Equivalent Dwelling
Unit. The calculation of the fee amount is on the last page of the Agreement.
ENVIRONMENTAL IMPACT:
The City Council certified EIR 98-07 on October 23, 2001. Staff determined that the La Costa
Ridge 2.6 CT 05-13 is within scope of that EIR so no further CEQA compliance is required. EIR
98-07 is available at the Planning Department.
EXHIBITS:
1. Resolution No. 2007-225 authorizing the Mayor to execute a prepayment agreement
between the City of Carlsbad and Western Pacific Housing, Inc. for La Costa Ridge 2.6 CT
05-13.
2. Petition, Waiver, and Consent to Creation of a Community Facilities District and Agreement
to Pay Fair Share.
3. Location map.
Exhibit 1
1 RESOLUTION NO. 2007-225
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO
EXECUTE A PREPAYMENT AGREEMENT BETWEEN THE CITY
4 OF CARLSBAD AND WESTERN PACIFIC HOUSING, INC. FOR
THE LA COSTA RIDGE 2.6, CT 05-13
o
6 WHEREAS, the City of Carlsbad City Council has required that the funding of
7 Rancho Santa Fe Road and Olivenhain Road (Project) must be guaranteed before any
8 development takes place in the area bounded by Local Facilities Management Zones
9 11 and 12, and portions of Zone 6; and
I ° WHEREAS, the Council has directed City staff to proceed with the formation of a
I1 Community Facilities District (CFD No. 2) to finance the Project when needed; and
12 WHEREAS, the Council is willing to consider alternative financing proposals
13 during the period from the present to the formation date of CFD No. 2; and
WHEREAS, the Council finds that the guarantee provisions related to the Project
15 may be met through an interim financing program using an agreement between certain
property owners and the City whereby the property owner agrees to prepay his/her fair
share of costs associated with the Project; and
18 WHEREAS, Western Pacific Housing, Inc. intends to build 53 detached
19 airspace condominium units in Local Facilities Management Zone 11 identified as CT
20 05-13; and
21 WHEREAS, the City Engineer has determined that, due to the size of the
22 residential development, there will be no major impact on the circulation system at the
23 present time if the development is allowed to proceed; and,
WHEREAS, the Council finds that Western Pacific Housing, Inc. may enter into
the attached Agreement to Pay Fair Share in satisfaction of their obligation under the
26 Project financing conditions.
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Exhibit 1
1 NOW THEREFORE BE IT RESOLVED by the City Council of the City of
2 Carlsbad, California, as follows:
3 1. That the above recitations are true and correct.
4 2. That the Mayor is hereby authorized to enter into the attached agreement
5 entitled "Petition, Waiver and Consent to Creation of a Community Facilities District and
6 Agreement to Pay Fair Share" between the City of Carlsbad and Western Pacific
7 Housing, Inc.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 14th day of August, 2007, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard, Nygaard
NOES: None
ABSENT: None
OJDE A L^WISTM'ayor
ATTEST:
LORRAINE M. WOOD, City Clerk(SEAL>
Exhibit 2
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City Clerk
CITY OF CARLSBAD
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Space Above This Line for Recorder's Use
Assessor Parcel No. 223-720-03
PETITION, WAIVER AND CONSENT TO CREATION
OF A COMMUNITY FACILITIES DISTRICT
AND AGREEMENT TO PAY FAIR SHARE COST
OF CT 05-13 ("AGREEMENT")
WHEREAS, the undersigned Property Owner at this time is processing for
development with the City of Carlsbad (hereinafter referred to as "City") a development
project known and identified as La Costa Ridge 2.6 CT 05-13 (hereinafter referred to as
the "Project"); and,
WHEREAS, the legal description for the Project is shown on Exhibit "A" attached
hereto and incorporated herein by reference; and,
Exhibit 2
WHEREAS, City has determined this Project is located within the boundaries of a
proposed Community Facilities District known as Community Facilities District No. 2 -
Rancho Santa Fe and Olivenhain Road (hereinafter referred to as "District"); and,
WHEREAS, the District is intended to be formed to finance those improvements
generally described in Section 1 herein; and,
WHEREAS, Property Owner desires to proceed with processing prior to the
formation of District; and,
WHEREAS, Condition No. 36 of Planning Commission Resolution No. 6143
requires the Developer to comply with all conditions and mitigation measures required as
part of Zone 11 Local Facilities Management Plan; and,
WHEREAS, pursuant to section 21.90.130 of the Municipal Code and pursuant to
Local Facilities Management Plan, Zone 11, development permits can not be issued until
the developer provides a financial guarantee towards its fair-share cost of improvements,
which for Zone 11, includes segments of Rancho Santa Fe Road; and,
WHEREAS, the City and Property Owner desire to agree to an alternative method
of financing the improvements described in Section 1 herein that will allow Property Owner
to discharge its fair share obligation for said improvements in lieu of, or in anticipation of,
participation in District; and,
WHEREAS, the City Council agrees that Property Owner, upon entering into this
Agreement and upon payment of the fair share described herein, has met the requirement
set forth in Condition No. 36 of Planning Commission Resolution No. 6143 and further
delineated in the Local Facilities Management Plan, Zone 11, to provide a financial
guarantee for the construction of those improvements described in Section 1 below; and,
Exhibit 2
WHEREAS, Property Owner voluntarily enters into this Agreement with respect to
the Project; and,
WHEREAS, the City Council has determined that due to the size of the proposed
development, there will be no major impact on the circulation system at the present time if
development of the Project is allowed to proceed with sufficient financial guarantees for
the construction of Property Owner's fair share of the circulation improvements;
NOW, THEREFORE, in consideration of proceeding with the processing of the
Project, the undersigned Property Owner and City hereby agree and certify to the
following:
1. Property Owner hereby petitions the City for the initiation of the proceedings
for the formation of District which will cause the construction and installation and/or
financing of the following improvements (hereinafter "Improvements") which are generally
described as follows:
a) Rancho Santa Fe Road North Phase 1 (RSF No.1) La Costa Avenue
to east of Mahr Reservoir
b) Olivenhain Road Widening, and intersection improvements at
Olivenhain and El Camino Real
c) Rancho Santa Fe Road North Phase 2 fRSF No. 2) Phase 1 End to
Melrose Drive.
d) Rancho Santa Fe Road South (RSF So.) (Assumes Secondary
Arterial Standard - Encinitas City Boundary to Olivenhain Road Full Improvements.
2. The cost of construction, engineering, environmental mitigations, legal and
other incidental expenses as set forth in the Improvements Budget will be funded by the
District, if formed, or by monies collected by the City for this purpose.
3. Property Owner acknowledges its right to notice of and participation in all
phases of formation under the "Mello-Roos Community Facilities Act of 1982," expressly
waives the proceedings required and all limitations contained in Title 5, Division 2, Chapter
3
Exhibit 2
2.5 of the California Government Code and nonetheless with full knowledge of such rights,
completely and forever waives such rights. Specifically, Property Owner hereby consents
to the proceedings and waives any right to protest the formation of the District and the
ordering of the improvements under applicable California statutes and consent to and
support formation of said District with respect to the Project. The City shall exclude the
Project from the District boundary map if, prior to the adoption of a Resolution of Intention
by the City Council to form said District, Property Owner has entered into this Agreement
and has paid to the City all amounts due as described herein.
4. a) Property Owner agrees to pay to City, or provide, its fair share for the
Improvements described in Section 1.
b) Said payment, or provision, shall be made in the manner described in
Exhibit "B", Rate and Method for Determining Fair Share Obligation Rancho Santa Fe and
Olivenhain Road, which is incorporated herein by reference.
c) The amount of Property Owner's fair share will be conclusively
determined by the City Council in the manner described in Exhibit "B" attached hereto and
incorporated herein by reference.
d) Payment by Property Owner of its fair share of improvement costs as
determined by City Council and set forth herein will satisfy their obligations for the
construction of the Improvements described in Section 1, as required by Condition No. 36
of Planning Commission Resolution No. 6143 and further delineated in the Local Facilities
Management Plan, Zone 11, subject to adjustment as described in Section 9 herein.
e) Alternatively, if the District is formed and the Project is included within
it, Property Owner's obligation to pay its fair share pursuant to the Agreement shall be
satisfied upon payment of all taxes imposed, established and payable to said District.
5. Property Owner acknowledges that this Agreement to pay its fair share and
Exhibit 2
participate in the financing of improvements is voluntary and that without this Agreement,
Property Owner would be precluded from obtaining final map approvals or building and
other development permits under the provisions of the General Plan, Chapter 21.90 of the
Carlsbad Municipal Code, applicable zone plan, financing plans and related documents
until a satisfactory financing program has been developed to fund the construction of the
Improvements described in Section 1.
6. Property Owner hereby waives its right to challenge the amount,
establishment or imposition of said fair share and further waive any rights to pay said fair
share under protest.
7. This Agreement does not affect, in any way whatsoever, the obligation of
Property Owner to pay any other fees or assessments associated with Property Owner's
development and/or to post improvement bonds as required by the City Engineer. Nor
does this Agreement relieve Property Owner from providing other public facilities required
under conditions placed upon tentative map CT 05-13 by the City.
8. Property Owner agrees that payment of its fair share is not a fee and waives
any and all rights to notice of or challenges to the establishment or imposition of said fair
share as a fee under provisions of Government Code section 66000 et seq.. or any
successor or related statutes.
9. a) If the District is formed subsequent to the payment by Property Owner
of the fair share pursuant to this Agreement, Property Owner's financial obligation shall be
recalculated using the taxing formula established for the District for the Improvements
described in Paragraph 1. If that obligation is lower than the amount previously paid or
provided by Property Owner to City, City shall refund any excess, in the manner described
below.
Exhibit 2
b) Any refund shall be made from funds available within District upon
District formation and shall not be an obligation of City's General fund or other revenue
sources.
c) In the event that sufficient funds are not available from District's
resources, Property Owner shall be reimbursed, as determined by the City Council,
through the payment of one-time taxes or annual undeveloped land taxes to the District.
The City is not required to establish an undeveloped land tax within the District to provide
such refund.
d) No reimbursement is required until the City Council determines that
sufficient funds are available. Any refund to Property Owner shall not include interest.
e) Any payment received by the City under this Agreement shall be
deposited in a special interest bearing fund and may only be used to fund the construction
of the facilities described herein. Upon the formation of a CFD to fund these same
Improvements, any amount remaining in the special fund may be transferred to the CFD
fund, at the discretion of the Finance Director.
10. Upon completion of the Improvements, and recording of the Notice of
Completion for the final phase of the Improvements, the City Engineer shall determine the
total cost of all phases of the Improvements and all related work (Costs), and the Finance
Director shall determine the total amount of revenue including fees, taxes, interest earned
on funds restricted to use only on the Improvements, and other sources of funds received
by the City dedicated to paying for the construction of the Improvements (Revenues). The
Finance Director shall then compare the amount of Costs and Revenues to determine if
there are any excess Revenues as described below. If excess Revenues of more than
$100,000 exist, the Finance Director shall provide refunds to all eligible parties of all
excess Revenues in an amount and in the manner described below. If excess Revenues
are equal to, or less than $100,000, the City shall retain these funds in a special fund to
be used to finance street repair, maintenance, and landscaping within the Improvements.
Exhibit 2
a) The total amount of excess Revenues shall be determined by deducting
the amount of the project Costs from the available Revenues. Total project Costs shall
include all costs to plan, design, construct, mitigate environmental impacts, inspect, and
otherwise complete the project to the satisfaction of the City Engineer, including applicable
charges for City staff services. Total Revenues shall include all monies held by the City
dedicated exclusively to the construction of the Improvements including any fee revenues
earmarked for the Project, CFD #2 taxes, applicable CFD #1 taxes, grants, and interest
earned on restricted funds as determined by the Finance Director.
b) The amount of the refund due to any party shall be based on the
proportion of that party's payments under this Agreement based on its proportional share
of Equivalent Dwelling Units constructed or to be constructed by that party, weighted as
described in Exhibit B, divided by the total number of EDUs constructed or to be
constructed within, and participating in, CFD #2 and/or CFD #2 agreements to prepay
taxes. The amount of the refund shall be determined by multiplying the proportional share
computed above by the total amount of excess revenues.
c) In order to share in the refund of any portion of the excess Revenues, the
eligible party must request to be included in the distribution of funds. Such request must
be made within 90 days after the City Council's acceptance of the Notice of Completion
for the final phase of the Improvements. Each request must be accompanied by
documents indicating clear title to the refund unless the request is being made by the
party who originally paid the taxes to the City under a prepayment Agreement or to CFD
#2.
d) The Finance Director shall compute the amount of the refund due each
party as described above. Funds may be disbursed to the eligible parties following
Council approval of such refunds.
Exhibit 2
e) if the City does not receive requests for refund from all eligible parties
within the specified period, and all funds cannot be disbursed as provided by this section,
any remaining funds shall be held in a special fund to be used to support road and
roadway maintenance in and around the Improvements area, as determined to be
necessary by the City Engineer, and approved by the City Council.
f) As a courtesy to all interested parties, the City will maintain a file of those
individuals or companies entitled to a refund, and will mail notices of refund availability to
the names and addresses in this file following the City Council's acceptance of the final
Notice of Completion. It is the eligible party's responsibility to notify the City if the right to
any refunds under this section is assigned to another party, or if there is a change in name
or address for the eligible party. The City takes no responsibility for the accuracy of the
information included in this file, and is under no obligation to locate persons or entities that
are entitled to refunds. Failure to notify any party of the availability of excess Revenues
shall not obligate the City in any way to extend or modify the above refund procedures.
11. Compliance with this Agreement will be accepted by City as an alternate to the
method described in the current Local Facilities Management Plan for local facilities
Management Zone 11 for financing the Improvements described in Paragraph 1. This
Agreement does not require City to issue building permits or other development permits or
grant approvals or relieve Property Owner of the obligation to comply with all applicable
provisions of law, including but not limited to Carlsbad Municipal Code Titles 18, 19, 20
and 21.
12. Compliance with the provisions of this Agreement is a condition of all future
discretionary approval for the Improvements. If Property Owner does not comply with the
provisions of this Agreement, approval of the Project will not be consistent with the
General Plan, the Growth Management Program, and the Local Facilities Management
Plan, and all subsequent discretionary approvals and permits for the Project may be
withheld by City.
8
Exhibit 2
13. In addition, the City will not approve any pending final maps, issue grading,
building or other development permits or take any discretionary action until the Property
Owner has complied with the terms of this Agreement due to be satisfied at the time such
approval is required.
14. The City may, at its discretion, elect to pursue any remedy, legal or equitable
against Property Owner and Property Owner's successors, heirs, assigns, and transferees
of the Project to secure compliance with this Agreement.
15. City shall not, nor shall any officer or employee of City, be liable or responsible
for any loss or damage incurred by Property Owner or any successor or assign of Property
Owner, or by any occupant in Property Owner's buildings, as a result of the exercise of
any remedies provided to City in this Agreement. Property Owner agrees to indemnify
City for any liabilities incurred by City as a result of City's exercise of these remedies.
16. This Agreement and the covenants contained herein shall be binding upon and
inure to the benefit of the successors, heirs, assigns, and transferees of Property Owner
with respect to the Project only and City, and shall run with the Project and create an
equitable servitude upon the Project.
17. All notices provided for under this Agreement shall be in writing and shall be
delivered in person or served by certified mail postage prepaid. Delivery of notice to
Property Owner shall be presumed to have been made on the date of mailing regardless
of receipt by Property Owner. Notices required to be given to Property Owner shall be
addressed as follows:
La Costa Ridge 2.6
C/0 D.R. Morton - Kim Molina, Senior Forward Planner
5790 Fleet Street, Suite 210
Carlsbad, CA 92008
Exhibit 2
Notices to the City shall be delivered to:
Finance Director
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Each party shall notify the other immediately of any change that would require any
notice delivered hereunder to be directed to another party.
18. This Agreement shall be recorded but shall not create a lien or security
interest in the property.
19. The undersigned Property Owner further states, under penalty of perjury, that
they are Owner of the property as described herein on Exhibit "A", or an authorized agent
of the Owner, and have the authority to execute this document, including the binding
authorizations herein.
10
Executed this
*OWNER:
is QW day of
Exhibit 2
., 2007.
CITY OF CARLSBAD, a Municij
State of i
(sign here)
ATTEST,
David Stearn
Vice President, Western Pacific Housing, Inc. Lorraine
City Clerk £j
Approved as to f6ift): *
V^Ball
City Attorney
imio
(Proper notarial acknowledgment of execution by 'OWNERS must be attached.)
(President or vice-president and secretary or assistant secretary must sign for
corporations. If only one officer signs, the corporation must attach a resolution certified by
the secretary or assistant secretary under corporate seal empowering that officer to bind
the corporation.)
11
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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State of California
County of
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Name(s) of Signer(s)
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subscribed to the within instrument and
acknowledged to me that/r^bho/thoy. executed
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the entity upon behalf of which the person(e)
acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reartachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date:. Number of Pages:.
Signer(s) Other Than Named Above:.
Capacity(ies) Claimed by Signer
Signer's Name:
D Individual
D Corporate Officer — Title(s):
D Partner — D Limited D General
D Attorney-in-Fact
D Trustee
D Guardian or Conservator
D Other:
RIGHT THUMBPRINT
OF SIGNER
Top of thumb here
Signer Is Representing:,
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e 1999 National Notary Association • 9350 De Solo Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnotary.org Prod. No. 5907 Reorder: Call Toil-Free 1 -800-876-6827
Exhibit A
Page 1 DESCRIPTION
Order No. 53041307
LOT 223 OF CITY OF CARLSBAD TRACT 99-04-02 VILLAGES OF LA COSTA - LA COSTA
RIDGE, IN THE CITY OF CARLSBAD. COUNTY OF SAN DIEGO. STATE OF CALIFORNIA,
ACCORDING TO MAP THEREOF NO 14838, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, JULY 14, 2004, TOGETHER WITH THOSE PORTIONS OF MELROSE
AVENUE, COR I NT IA STREET AND RANCHO SANTA FE ROAD, AS SHOWN AND DEDICATED ON SAID
MAP, WHICH UPON VACATION WOULD REVERT TO SAID LAND
EXCEPTING THEREFROM ANY AND ALL (I) OIL RIGHTS, (II) MINERAL RIGHTS, (III)
NATURAL GAS RIGHTS, (IV) RIGHTS TO ALL OTHER HYDROCARBONS BY WHATSOEVER NAME
KNOWN, (V) GEOTHERMAL HEAT RIGHTS OR GEOTHERMAL SUBSTANCES THAT MAY BE PRODUCED
FROM THE PROPERTY, (VI) WATER RIGHTS AND CLAIMS OR RIGHTS TO WATER AND (VII) ALL
PRODUCTS DERIVED FROM ANY OF THE FOREGOING (COLLECTIVELY, "SUBSURFACE
RESOURCES"), AND THE PERPETUAL RIGHT TO DRILL, MINE, EXPLORE AND OPERATE FOR AND
PRODUCE, STORE AND REMOVE ANY OF THE SUBSURFACE RESOURCES ON OR FROM THE
PROPERTY, INCLUDING WITHOUT LIMITATION THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY
DRILL AND MINE, FROM LANDS OTHER THAN THE PROPERTY, WELLS, TUNNELS AND SHAFTS
INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE PROPERTY, AND TO BOTTOM SUCH
WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS WITHIN OR BEYOND
THE EXTERIOR LIMITS OF THE PROPERTY, AND TO REDRILL, RETUNNEL. EQUIP, MAINTAIN,
REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES. BUT WITHOUT THE RIGHT TO
DRILL, MINE, EXPLORE, OPERATE, PRODUCE, STORE OR REMOVE ANY OF THE SUBSURFACE
RESOURCES THROUGH OR IN THE SURFACE OF THE PROPERTY OR THE UPPER FIVE HUNDRED
(500) FEET OF THE SUBSURFACE OF THE PROPERTY, AS GRANTED TO DRH ENERGY, INC., A
COLORADO CORPORATION IN DEED RECORDED APRIL 24, 2007 AS FILE NO 2007-0278780 OF
OFFICIAL RECORDS
EXHIBIT B
RATE AND METHOD FOR DETERMINING
FAIR SHARE OBLIGATION
RANCHO SANTA FE AND OLIVENHAIN ROADS
The City Council shall use the following rate and method for determining the fair share obligation
for funding the construction of Rancho Santa Fe and Olivenhain Roads due from property
conditioned to participate in the financing of these facilities. This calculation is done as part of an
Agreement titled PETITION, WAIVER AND CONSENT TO CREATION OF A COMMUNITY
FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR SHARE (Agreement) which has been
voluntarily entered into by the City of Carlsbad and certain property Owner wishing to proceed with
development of their property in advance of the creation of Community Facilities District No. 2
(CFD No. 2). It is the City and property owner intent to form CFD No. 2 to provide funding for
those improvements described within the Agreement.
The following rate and method shall be used to determine the fair share and amount due from any
property owner wishing to take advantage of this alternate funding mechanism.
Basis for Cost Allocation
The basis for allocation of costs to property conditioned with the financing of the improvements
described in the Agreement shall be the Equivalent Dwelling Unit (EDU), which is defined per
product classification as follows:
Product Classification Equivalent Dwelling Units
Single Family - Detached Units 1.0 EDU
Single Family - Attached Units 0.8 EDU
Multi-Family Units 0.6 EDU
Churches 4.0 EDU per Acre
Commercial/Industrial and other 10.0 EDU per Acre
The number of each type of unit included in a development shall be determined by the City
Engineer based on the most recent final map submitted to the City for approval.
The EDU determination for non-residential development shall be made by the City Engineer when
such a determination is requested by the property owner. The City Engineer may request
13
additional information from any property owner as may be necessary to make his determination.
The City Engineer is not required to make a determination on the number of EDUs for any project
until adequate information is available.
The City Engineer's determination shall be submitted to the City Council in the table below. The
City Council shall make the final determination of the number of EDUs to be used in computing the
fair share obligation for any project.
Fair Share Amount and Method of Payment
The City shall collect $10,250 for each EDU as determined by the City Council. This amount shall
be collected in one payment of $10,250 per EDU to be paid prior to Council consideration of final
map approval as described below.
1) Prior to the approval of a final map by the City Council, the property Owner shall pay to the
City an amount equal to the number of EDUs included in said final map, as determined by the
City Engineer, times $10,250. If the City Council determined that the City Engineer's
calculation of the number of EDUs included on the final map is in error, the Council shall direct
the City Engineer to amend his calculations and direct staff to bring the final map back for
approval when such correction has taken place. Funds must be paid to the City before the
final map will be scheduled for Council consideration.
Computation of Fair Share Obligation
La Costa Ridage 2.6 CT 05-13
Type of Unit EDU Cost per
EDU Amount Due
Single Family
Detached Units
53.0 $10,250 $543,250
2) If the property owner has already obtained a final map for units conditioned with the financing
of Rancho Santa Fe and Olivenhain Road, the property owner shall pay to the City the net
amount due shown above prior to entering into this Agreement.
14
Exhibit 3
WOT TO SCALE
SITEMAP
La Costa Ridge Neighborhood 2.6
CT05-13/CP05-12