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HomeMy WebLinkAboutOrd. No. 2016-1363 To Repeal the Authority of the District to Levy FacilitiesORDINANCE NO. 2016 -1363 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CEASING THE FACILITIES SPECIAL TAX OBLIGATION WITHIN IMPROVEMENT AREA C OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -2 (ALBERHILL RANCH) AND ORDERING THE RECORDATION OF A NOTICE OF CESSATION OF SPECIAL TAX LIEN WITHIN IMPROVEMENT AREA C AND AMENDING ORDINANCE NO. 1163 TO REPEAL THE AUTHORITY OF THE DISTRICT TO LEVY FACILITIES SPECIAL TAXES WHEREAS, in 2005, the City Council (Council) of the City of Lake Elsinore (City) initiated proceedings pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Mello - Roos Act), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53111 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 (CFD) and designated three improvement areas therein designated as Improvement Area A (Area A), Improvement Area B (Area B), and Improvement Area C (Area C); and, WHEREAS, on September 13, 2005, the Council adopted Resolution No. 2005 -138 (Resolution of Formation) determining the validity of prior proceedings and establishing the CFD and designating Area A, Area B, and Area C therein; and, WHEREAS, on September 27, 2005, the 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, Area C 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 Improvement Area C 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 Improvement Area C on September 26, 2005, as Document No. 2005 - 0793367. A Notice of Special Tax Lien for a services special tax was recorded against the property in Improvement Area C 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 Area B and Area C; and, WHEREAS, no bonds have been issued by the CFD with respect to Area C; and, WHEREAS, on May 20, 2015, the current owner of all of the property within Area C of the CFD, Castle & Cooke Alberhill Ranch, LLC, a California limited liability company, now merged into Castle & Cooke Alberhill Home Building, Inc, a California corporation (Owner), submitted a letter to the City in which it: Ord. No. 2016 -1363 Page 2 of 4 a. notified the City that the Owner will not be requesting the issuance of bonds to finance the construction of public facilities for Area C because the construction of any public facilities in the Area C will be funded through other sources; and, requested the CFD prepare and record the Notice of Cancellation for Area C as contemplated by Section 2.3 of the Funding, Construction and Acquisition Agreement entered into as of October 1, 2005, between the City and Castle & Cooke for the facilities Special Tax; and, b. acknowledged that the request is not intended to impact any services special taxes related to ongoing maintenance that may otherwise be applicable to Area C; and, WHEREAS, on July 19, 2016, the Owner submitted a Waiver and Acknowledgement in which the 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; and, 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 Area C 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- Recorder of the County of Riverside, State of California; and, 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 modify the obligation of the Owner or any successor or assign of the Owner, as the owner of all property in Area C 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 Owner's property within CFD No. 2005 -2. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMIN AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals are true and correct, and are incorporated herein as if set forth in full. Section 2. Findings. The 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 Improvement Area C and the District is not obligated to pay any outstanding debt on behalf of Area C. 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. Ord. No. 2016 -1363 Page 3 of 4 C. Accordingly, the facilities Special Tax shall cease to be levied within Area C and the District has no authorization to levy any special tax with regards to construction of facilities on behalf of Improvement Area C. 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- 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 Council hereby extinguishes the Special Tax for facilities special taxes in Area C 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. C. Ordinance No. 1163 is hereby amended to repeal the authority of the District to levy facilities special taxes within Area C of the District. Ordinance No. 1163 shall otherwise remain unchanged. Nothing herein shall affect the authorization to levy special taxes within Area A or Area B. Section 4. Severability. If 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. Section 6. INTRODUCED at a Regular meeting of the City Council of the City of Lake Elsinore, California, held on August 23, 2016, and ADOPTED at a Regular meeting of the City Council of the City of Lake Elsinore, California, held on September 13, 2016. Brian Tisdale, Mayor ATTEST: Susan M. Domen, MMC, City Clerk Ord. No. 2016 -1363 Page 4 of 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, hereby certify that Ordinance No. 2016 -1363 was introduced at the Regular meeting of August 23, 2016, and adopted at the Regular meeting of September 13, 2016, by the following roll call vote: AYES: Council Members Hickman, Johnson, and Manos; Mayor Pro Tern Magee and Mayor Tisdale NOES: None ABSENT: None ABSTAIN: None CL:9�6-4 Domen, MMC City Clerk