HomeMy WebLinkAbout2021-026 Intent to Incur Debt within CFD No. 2021-1 - Tuscany Valley-Crest
RESOLUTION NO. 2021-26
ARESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF
LAKEELSINORE, CALIFORNIA,STATING ITS INTENTION TO INCUR
BONDED INDEBTEDNESS WITHIN EACH OF PROPOSED IMPROVEMENT
AREA NOS. 1 AND 2 OF PROPOSED COMMUNITY FACILITIES DISTRICT NO.
2021-1OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
Whereas, the City Council of the City of Lake Elsinore (the “City Council”) upon receipt of
a petitionfrom SPT-AREP III Tuscany Associates, LLC, a Delaware limited liability company,as
provided in Sections53318and 53319of the Government Code of the State of California instituted
proceedings to form Community Facilities District No. 2021-1of the City of Lake Elsinore (Tuscany
Valley/Crest) (“Community Facilities District No. 2021-1” or the “District”) and two improvement
areas therein to be designated as “Improvement Area No. 1 of Community Facilities District No.
2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest)” (“Improvement Area No. 1”) and
“Improvement Area No. 1 of Community Facilities District No. 2021-1 of the City of Lake Elsinore
(Tuscany Valley/Crest)” (“Improvement Area No. 2”and together with Improvement Area No. 1,
the “Improvement Areas” and each an “Improvement Area”)pursuant to the Mello-Roos
Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. 2021-25
adopted by the City Council onMarch 23,2021; and,
Whereas,the purpose of the proposed District isto finance (1) the purchase, construction,
modification, expansion, improvement and/or rehabilitation of public facilities identified in
Attachment “A” hereto and incorporated herein by this reference, including all furnishings,
equipment and supplies related thereto (collectively, the “Facilities”)and (2) the incidental
expenses to be incurred in financing the Facilities and forming and administering the District (the
“Incidental Expenses”); and,
Whereas, the City Council estimates that the amount required to finance the Facilities and
Incidental Expenses is approximately $24,000,000; and,
Whereas, in order to finance the Facilities and Incidental Expenses, the City Council
intends to (i) authorize the issuance of bonds in the maximumaggregate principal amount of
$14,000,000,for Improvement Area No. 1, the repayment of which is to be secured by special
taxes levied in accordance with Section 53328 of the Act on all property in the proposed
Improvement Area No. 1, other than those properties exempted from taxation in the rate and
method of apportionment set forth in Attachment “C” to Resolution No. 2021-25; and (ii)authorize
the issuance of bonds in the maximum aggregate principal amount of $10,000,000,for
Improvement Area No. 2, the repayment of which is to be secured by special taxes levied in
accordance with Section 53328 of the Act on all property in the proposed Improvement Area No.
2,other than those properties exempted from taxation in the rate and method of apportionment
set forth in Attachment “D” to Resolution No. 2021-25.
NOW, THEREFORE, THE CITY COUNCILOF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1.The above recitals are true and correct.
Section 2.It is necessary to incur bonded indebtedness within the boundaries of
proposed Improvement Area No. 1 of Community Facilities District No. 2021-1in an amount not
to exceed $14,000,000and within the boundaries of proposed Improvement Area No. 2 of
CC Res. No. 2021-26
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Community Facilities District No. 2021-1 in an amount not to exceed $10,000,000to finance the
costs of the Facilities and Incidental Expenses, as permitted by the Act.
Section 3.The indebtednessof each proposed Improvement Areawill be incurred for
the purposeof financing the costs of the Facilities and the Incidental Expenses, including, but not
limited to, the funding of reserve funds for the bonds, the financing of costs associated with the
issuance of the bonds and all other costs and expenses necessary tofinance the Facilities which
are permitted to be financed pursuant to the Act.
Section 4.It is the intent of the City Council to authorize the sale of bonds within each
proposed Improvement Area in one or more series, in the maximum aggregate principal amount
of $14,000,000for proposed Improvement Area No. 1 and $10,000,000for proposed
Improvement Area No. 2and at a maximum interest rate not in excess of 12 percent per annum,
or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are
issued. The term of the bonds of each series shall be determined pursuant to a resolution of this
City Council acting in its capacity as the legislative body of the District authorizing the issuance
of the bonds of such series, but such term shall in no event exceed 35 years from the date of
issuance of the bonds of such series, or such longer term as is then permitted by law.
Section 5.A public hearing (the “Hearing”) on theproposed issuance of bonded
indebtedness shall be held at 7:00 p.m. or as soon thereafter as practicable, on April 27,2021, at
the City Cultural Center, 183 North Main Street, Lake Elsinore, California.Notwithstanding the
foregoing, consistent with theGovernor of the State of California’s Executive Order N-29-20 or
other applicable directives, the Hearing may be held remotely with public participation via methods
to be set forth in the City Council’s agenda.
Section 6.At the time and place set forth in this Resolution for the Hearing, any
interested persons, including all persons owning land or registered to vote within proposed
Community Facilities District No. 2021-1, may appear and be heard.
Section 7.The City Clerk is hereby directed to publish a notice (the “Notice”) of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of the proposed Community Facilities District No. 2021-1. Such publication
shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further
directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed
Community Facilities District No. 2021-1at least 15 days prior to the Hearing.
Passed and Adoptedat a regular meeting of the City Council of the City of Lake Elsinore,
rd
California, this 23day of March 2021.
Robert E. Magee
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
CC Res. No. 2021-26
Page 3of 4
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LAKE ELSINORE)
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2021-25was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of March 23, 2021 and that the same was adopted by the following vote:
AYES:Council Members Tisdale, Johnson, and Manos; Mayor Pro Tem Sheridan; and
Mayor Magee
NOES:None
ABSENT:None
ABSTAIN:None
Candice Alvarez, MMC
City Clerk
ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2021-1
The proposed types of public facilities and expenses to be financed by the District
include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of
(i) drainage, library, park,fire,roadway, traffic, administration and community center facilities,
marina and animal shelter facilities,and other public facilities of the City, including the foregoing
public facilities which are included in the City’s fee programs with respect to such facilities and
authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended
(the “City Facilities”) and (ii) water and sewer facilities including the acquisition of capacity in the
sewer system and/or water system of the Elsinore Valley Municipal Water District which are
included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection
fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”),
and all appurtenances and appurtenant work in connection with the foregoing Facilities, including
the cost of engineering, planning, designing, materials testing, coordination, construction staking,
construction management and supervision for such Facilities, and to finance the incidental
expenses to be incurred, including:
a.The cost of engineering, planning and designing the Facilities;
b.All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c.Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
A-1
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