HomeMy WebLinkAboutOrd. No. 2015-1347oRDtNANCE NO. 201 5-1 347
AN ORDINANCE OF THE CITY COUNCIL OF THE CIry OF LAKE
ELSINORE, CALIFORNIA, CEASING THE FACILITIES SPECIAL TAX
OBLIGATION wlTHIN IMPROVEMENT AREA B OF THE CITY OF
LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2OO5-2
(ALBERHTLL RANCH) AND ORDERTNG THE RECORDATTON OF A
NOTICE OF CESSATION OF SPECIAL TAX LIEN WITHIN
IMPROVEMENT AREA B AND AMENDING ORDINANCE NO. 1163 TO
REPEAL THE AUTHORITY OF THE DISTRICT TO LEVY FACILITIES
SPECIAL TAXES.
WHEREAS, in 2005, the City Council (the "City Council") of the City of Lake
Elsinore (the "City") initiated proceedings pursuant to the Mello-Roos Community
Facilities Act of 1982, as amended (the "Mello-Roos Act"), Chapter 2.5 of Paft 1 of
Division 2 of Title 5, commencing with Section 53'111 of the California Government
Code, to form a community facilities district designated as Community Facilities District
No. 2005-2 (Alberhill Ranch) of the City of Lake Elsinore (the "CFD") and designated
three improvement areas therein designated as lmprovement Area A ("lmprovement
Area A"), lmprovement Area B ("lmprovement Area B"), and lmprovement Area C
("lmprovement Area C"); and
WHEREAS, on September 13, 2005, the City Council adopted Resolution No.
2005-138 (the "Resolution of Formation") determining the validity of prior proceedings
and establishing the CFD and designating lmprovement Area A, lmprovement Area B,
and lmprovement Area C therein; and
WHEREAS, on September 27,2005, The City Council adopted Ordinance No.
1163 authorizing the levy of a services special tax and a facilities special tax within the
boundaries of the CFD in amounts necessary to pay all of the costs of providing
services, fees, and facilities, periodic costs, and costs of the tax levy and collection, and
all other costs including amounts payable with respect to the bonded indebtedness; and
WHEREAS, lmprovement Area B was formed for the purpose of financing (a)
certain maintenance costs, (b) certain facilities to be owned by the City, and (c) certain
fees required to be paid to the City to finance public works, drainage, transportation and
local facilities; and
WHEREAS, the Resolution of Formation authorized the levy of special taxes
commencing in Fiscal Year 2006-07, to finance the Services, Facilities, and/or to pay
debt service on bonds authorized to be issued for lmprovement Area B of the CFD for
such purposes; and
WHEREAS, a Notice of Special Tax Lien for a facilities special tax was recorded
in the office of the Assessor, County Clerk, and Recorder of the County of Riverside
against property in lmprovement Area B on September 26, 2005, as Document No.
2005-0793367. A Notice of Special Tax Lien for a services special tax was recorded
City Council Ordinance No. 20'15-1347
Page 2 of 4
against the property in lmprovement Area B on September 26,2005, as Document No.
2005-0793368. On May 24,2006 as Document No. 2006-0376993 and on June 23,
2005 as Document No. 2006-0456005, the Notice of Special Tax Lien for a facilities
special tax was subsequently amended only as to the facilities special taxes within
lmprovement Area B and lmprovement Area C; and
WHEREAS, no bonds have been issued by the CFD with respect to
lmprovement Area B; and
WHEREAS, on May 20, 2015, the current owner of all of the property within
lmprovement Area B of the CFD, Castle & Cooke Alberhill Ranch, LLC, a California
limited liability company, now merged into Castle & Cooke Alberhill Home Building, lnc,
a California corporation (the "Owner"), submitted a letter to the City in which it:
a. notified the City that Owner will not be requesting the issuance of bonds to
finance the construction of public facilities for lmprovement Area B
because the construction of any public facilities in the lmprovement Area
B will be funded through other sources;
b. requested the CFD prepare and record the Notice of Cancellation for
lmprovement Area B as contemplated by Section 2.3 of the Funding,
Construction and Acquisition Agreement entered into as of October 't,
2005 between the City and Castle & Cooke for the facilities Special Tax;
c. Acknowledged that the request is not intended to impact any services
special taxes related to ongoing maintenance that may otherwise be
applicable to lmprovement Area B; and
WHEREAS, on December 1, 2015, Owner submifted an Acknowledgement
and Waiver in which Owner:
a. voluntarily and knowingly waives its rights, if any, to have the cost of the
Facilities, or any portion thereof, paid on behalf of the Owner or
reimbursed to the Owner by the City, the CFD, or both of them, from the
proceeds of bonds or special taxes;
b. voluntarily and knowingly waives the obligation, if any, of the City, the
CFD, or both of them, to issue bonds or levy facilities special taxes within
lmprovement Area B of CFD No. 2005-2, such as contemplated by the
Special Tax Lien for facilities special taxes recorded as Document No.
2005-0793367 as amended by Document No. 2006-0376993 and
Document No. 2006-0456005, recorded in the records of the office of the
Assessor, County Clerk, and the Recorder of the County of Riverside,
State of California;
c. voluntarily and knowingly waives any protest, complaint, or legal action of
any nature whatsoever against the City, the CFD, or both of them,
pertaining to the cessation of facilities special taxes and cancellation of
Special Tax Lien, the failure to issue bonds or levy special taxes; and
d. acknowledges and understands that the making of this request does not in
any way whatsoever absolve, terminate, extinguish, reduce, or otherwise
City Council Ordinance No. 2015-1347
Page 3 of 4
modify the obligation of the Owner or any successor or assign of the
Owner, as the owner of all property in lmprovement Area B of CFD No.
2005-02, with respect to the construction of public facilities and the
payment for services required by the City or any other public agency as a
condition of approval of the development of the Ownels property within
CFD No. 2005-2.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION l. Eecitals. The above recitals are true and coffect, and are
incorporated herein as if set forth in full.
SECTION 2. Eindings. The City Council acting as the legislative body of the
CFD hereby finds and determines that:
A. No bonds have been issued by the District on behalf of lmprovement Area
B and the District is not obligated to pay any outstanding debt on behalf of
lmprovement Area B;
B. The Facilities Special Tax is no longer needed to pay principal and interest
on debt incurred in order to construct facilities under the authority of the Mello-Roos
Act, and, based on the Request, is no longer needed to pay for the construction of
facilities authorized by the Mello-Roos Act; and
C. Accordingly, the facilities Special Tax shall cease to be levied within
lmprovement Area B and the District has no authorization to levy any special tax with
regards to construction of facilities on behalf of lmprovement Area B.
D. The Services Special Tax and the lien imposed by the Notice of Special
Tax Lien, Document No. 2005-0793368, recorded in the records of the office of the
Assessor, County Clerk, and the Recorder of the County of Riverside, State of
California, remains in full force and effect and is unchanged by this Ordinance.
SECTION 3.Cessation of Facilities Special Tax.
A. The City Council hereby extinguishes the Special Tax for facilities special
taxes in lmprovement Area B of CFD No. 2005-2 pursuant to Government Code
Section 53330.5.
B. The City Clerk is ordered to record or cause the recording of a Notice of
Cessation of Special Tax pursuant to Government Code Section 53330.5, which shall
state that the obligation to pay the special tax has ceased and that the lien imposed by
the Notice of Special Tax Lien recorded as Document No. 2005-0793367, as amended
by Document No. 2006-0376993 and Document No. 2006-0456005, in the records of
the office of the Assessor, County Clerk, and the Recorder of the County of Riverside,
State of California, is extinguished. The Notice of Cessation of Special Tax shall
additionally identify the book and page of the Book of Maps of Assessment and
Community Facilities Districts wherein the map of the boundaries of the district is
recorded.
City Council Ordinance No. 201 5-1347
Page 4 of 4
C. Ordinance No. 1163 is hereby amended to repeal the authority of the
District to levy facilities special taxes within lmprovement Area B of the District.
Ordinance No. 1163 shall otherwise remain unchanged. Nothing herein shall affect the
authorization to levy special taxes within lmprovement Area A or lmprovement Area C.
SECTION 4. Severabilitv. lf any provision, clause, sentence or paragraph of this
Ordinance to any person or circumstance shall be held invalid, such invalidity shall not
affect the other provisions of this Ordinance and are hereby declared to be severable.
SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after
the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance
and cause this Ordinance to be published and posted in the manner required by law.
APPROVED AND INTRODUCED at a regular meeting of the City Council of the
City of Lake Elsinore, California, on the 8th day of December,2015, and adopted at
ale, Mayoi
d5afi-M. Domen, MMC
STATE OF CALTFORNTA )
COUNry OF RIVERSIDE ) ss.
ctTY oF LAKE ELSTNORE )
l, Susan M. Domen, City Clerk of the City of Lake Elsinore, California, hereby certify that
Ordinance No. 20'15-1347 was introduced at the regular City Council meeting of
December 8, 2015, and adopted at the regular meeting of January 12, 2016, by the
following roll call vote:
AYES: Council Member Johnson, Council Member Manos, Council Member Hickman,
Mayor Pro Tem Magee, and Mayor Tisdale
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk