HomeMy WebLinkAbout0018_1_Fairway - SRReport 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:February 28, 2017
Subject:Annexation No. 3 Into Community Facilities District No. 2015-2 (Maintenance
Services) For Fairway Business Center (PM 36551)
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY
FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE
ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 3) AND
AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN
Background and Discussion
On September 22, 2015 the City Council approved Resolution No. 2015-078 establishing
Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore (the
"CFD No. 2015-2" or "District") for the purpose of levying special taxes on parcels of taxable
property to provide certain services which are necessary to meet increased demands placed upon
the City.
Rod Oshita, a partner with ARI Chaney Street, LLC, property owner of 18.21 gross acres of
commercial/industrial property proposed to build 20 units (industrial buildings) within the City (PM
36551) has requested that the City assist them in annexing territory into CFD No. 2015-2
(Maintenance Services) to cover the costs associated with the maintenance of public
improvements. The improvements proposed to be maintained include items such as landscaping
and lighting, water quality improvements, and street maintenance.
The landowner has advised the City that the area described in Exhibit “A” of the Resolution of
Intention to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of
the special taxes to be levied as described in Exhibit “C”.
The original area proposed within Annexation No. 3 will encompass 20 industrial buildings
comprising of 6.37 net acres, with a maximum annual tax of $2,872 per acre, per year. The
territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 4 consisting
of Parcel Map 36551. The proposed total maximum tax rate for Tax Zone 4 is $2,872 per acre per
year. This tax rate includes a Maximum Special Tax A of $ 2,671 per acre per year for
Fairway Business Center
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maintenance services of public facilities and a Maximum Annual Special Tax B of $201 per acre
per year (POA Contingent). Special Tax B is for the maintenance and operation of the
improvements described in Exhibit “B” attached hereto. If the POA were to default of its obligation
to maintain such improvements, the City would be able to collect funds to pay for those services.
Exhibit “H” attached to the staff report is a maintenance exhibit to illustrate which services are
being maintained by the CFD and by the POA.
Annual Special Tax B rate is proposed to escalate each year at the greater of Consumer Price
Index (CPI) or 2%. ARI Chaney Street, LLC has agreed to the annexation into the CFD and
submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct
proceedings pursuant to the Mello-Roos Act of 1982, requesting the annexation of property to
CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time
requirements, waiving analysis and arguments, and waiving all notice requirements relating to the
conduct of the election.
The next step to annex the property to CFD No. 2015-2 is to publish a notification of the proposed
district along with the "Resolution of Intention" and Boundary Map of the proposed Annexation
area. A public hearing on the matter will take place on April 11, 2017, and at that time the Council
will formally consider approval of Annexation No. 3.
Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will
be subject to the special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining
the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax
revenues available from parcels for which building permits have been issued, then the special tax
may also be on property with recorded final subdivision maps, as well as other undeveloped
property within the Tax Zone. The special tax levied to pay for maintenance services will only be
applied to those properties for which a building permit has been issued as of March 1 preceding
the Fiscal Year being levied.
Once developed, the Special Tax A for Tax Zone 4 will generate $18,291 for maintenance
services.
Exhibits
A. Resolution No. 2017-
a. Description of Territory
b. Description of Authorized Services
c. RMA CFD2015-2 (Maintenance Services) - ROI
d. CFD 2015-2 Recorded Potential Annexation Area
e. CFD 2015-2 Annexation No. 3 Boundary Map
f.Petition
g. Notice of Public Hearing – April 2017
h. Ballot
i.Maintenance Exhibit