HomeMy WebLinkAbout0012_1_Makenna - Staff ReportREPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by: Jason Simpson, Assistant City Manager
Date:October 25, 2016
Subject: Community Facilities District No. 2007-4 (MaKenna Court) - Declare Intent to
Consider an Amendment to the Rate and Method of Apportionment of Special
Tax, to Increase the Amount of Bonded Indebtedness to be Incurred by the
District and to Include Additional Services Authorized to be Provided by the
District
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING
AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES
DISTRICT NO. 2007-4 (MAKENNA COURT) DECLARING ITS INTENTION TO CONSIDER AN
AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX, TO
INCREASE THE AMOUNT OF BONDED INDEBTEDNESS TO BE INCURRED BY THE
DISTRICT AND TO INCLUDE ADDITIONAL SERVICES AUTHORIZED TO BE PROVIDED BY
THE DISTRICT
Background
The City of Lake Elsinore (the “City”) formed the City of Lake ElsinoreCommunity Facilities District
No. 2007-4 (MaKenna Court) (the “District”) in 2007 pursuant to the Mello-Roos Community
Facilities District Act of 1982. The District consists of Tract No. 33846 and is located south of
Lakeshore Drive, west of Machado, east of Terra Cotta Road and North of Zieglinder Drive. SAM-
MaKenna, LLC, is the landowner within the District (the “Developer”). The development within the
District is expected to include approximately 81 single family homes at build-out.
While the District was formed in 2007, homebuilding has not yet commenced. Due to revisions
in the proposed product mix within the District, the Developer has requested that the District
undertake proceedings to amend the Rate and Method of Apportionment of Special Taxes,
increase the amount of bonded indebtedness authorized to be incurred by the District and revise
the term of the special tax levy to be 40 years from fiscal year 2017-18. The Developer has also
agreed to annex his project into the CFD 2015-1 Safety Tax and de-annex from CFD 2007-1 Law,
Fire and Paramedic District. In addition, the revised rate and method of apportionment of special
taxes for the District (the “First Amended RMA”) provides for the special tax for services (which
was also authorized at the time the District was formed) to be applied toward maintenance of
parkways, streets, roads and street sweeping within the District.
Documents to be Approved
Approval of the attached resolution is the first step in the process to effectuate the changes
discussed above. The attached resolution declares the District’s intention to consider the
proposed changes, calls a public hearing on the proposed changes and approves the form of a
reimbursement agreement with the Developer (the “Reimbursement Agreement”) relating to the
costs of the proceedings necessary to accomplish such changes.
Fiscal Impact
The Developer has made a deposit to pay for the costs of the change proceedings. The
Reimbursement Agreement provides that the Developer will be reimbursed for such costs if and
when bonds are issued for the District.
The District will annually levy special taxes on all of the taxable property within the District in
accordance with the First Amended RMA in order to pay for the costs of facilities, debt service on
bonds, the services and administration of the District. Any bonds issued by the District are not
obligations of the City and will be secured solely by the Special Taxes levied in the District.
Exhibits
A. Resolution
B. Reimbursement Agreement
C. Landowner Petition for CFD 2007-4 (Makenna Court)
D. Landowner Petition for CFD 2015-1 (Safety Services)