HomeMy WebLinkAbout0011_1_CFD No. 2022-2 (Lakeshore) - SRPage 1 of 2
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Date: July 12, 2022
Subject: Intention to Establish Community Facilities District No. 2022-2 of the City of
Lake Elsinore (Lakeshore)
Recommendation
1) adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2022-
2 OF THE CITY OF LAKE ELSINORE (LAKESHORE), TO AUTHORIZE THE LEVY OF A
SPECIAL TAX TO PAY THE COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN
FACILITIES AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS.
2) adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO
EXCEED $10,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO.
2022-2 OF THE CITY OF LAKE ELSINORE (LAKESHORE.)
Background and Discussion
The property to be included within proposed Community Facilities District No. 2022-2 of
the City of Lake Elsinore (Lakeshore) (“CFD No. 2022-2” or the “District”) currently
consists of two assessor parcels located on Lakeshore Drive, southwest of the corner of
Machado Street and Lakeshore Drive (the “Property”) (see the attached project m ap).
Collectively, the two parcels are approximately 10 gross acres with plans to be entitled
for 140 single-family residential lots. One parcel is owned by Lake Elsinore Lakeshore,
LLC, a California limited liability company, and the other parcel is owned by Erin Crowder,
an individual. Lake Elsinore Lakeshore, LLC and Erin Crowder are referred to in this
report together as the “Property Owner.” The Property Owner’s plans with respect to the
property to be included in CFD No. 2022-2 is to obtain certain development entitlements
and to ultimately sell the property to a merchant homebuilder.
The Property Owner has requested that the City form CFD No. 2022-2 to encompass the
Property in accordance with the Mello-Roos Community Facilities Act of 1982, as
ROI CFD No. 2022-2 (Lakeshore)
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amended (the “Act”), to finance the costs of certain public improvements through the levy
of a special tax and the issuance of bonds. The maximum amount of bonded
indebtedness proposed is $10 million.
The Property Owner has requested that the boundaries of CFD No. 2022-2 include the
area described in Attachment A of the Resolution of Intention to Establish CFD No. 2022-
2 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied
within the boundaries of the District in accordance with the Rate and Method of
Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention. The
Resolution of Intention is the first step in the process of forming CFD No. 2022-2. The
attached Resolutions declare the City’s in tention to establish CFD No. 2022-2, its
intention to incur bonded indebtedness by CFD No. 2022-2, and call for a public hearing.
A public hearing on the matter will take place on August 26, 2022, and at that time the
Council will formally consider the establishment of CFD No. 2022-2, and hold elections
on the approval of the special taxes and the need to incur bonded indebtedness within
CFD No. 2022-2.
Fiscal Impact
Lake Elsinore Lakeshore, LLC has made a deposit to pay for the costs of the formation
proceedings which may be reimbursed to Lake Elsinore Lakeshore, LLC in accordance
with a reimbursement agreement with Lake Elsinore Lakeshore, LLC. If established and
subject to necessary Council and voter approvals, CFD No. 2022-2 will annually levy
special taxes on all of the taxable property within the District in accordance with the RMA
(as attached to the Resolution of Intention). Such special taxes will be used to pay for
the costs of facilities, debt service on bonds and administration of CFD No. 2022-2. Any
bonds issued by CFD No. 2022-2 are not obligations of the City and will be secured solely
by the Special Taxes levied within CFD No. 2022-2.
The RMA provides that the annual special tax rates will range from $3,145 for home sizes
less than 1,800 square feet to $3,434 for home sizes greater than 1,950 square feet,
which rates escalate at 2% per year.
Exhibits
A – Resolution of Intention to Establish CFD 2022-2
B – Resolution of Intention to Incur Debt
C – Landowner Petition
D – Project Map
E – Reimbursement Agreement