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HomeMy WebLinkAbout04-16-2019 Item 07, Ordinance Adoption - San Luis Ranch Community Facilities District no 2019-1 tax Department Name: Community Development Cost Center: 4003 For Agenda of: April 16, 2019 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director SUBJECT: ADOPTION OF AN ORDINANCE APPROVING A SPECIAL TAX TO FUND INFRASTRUCTURE FOR THE ESTABLISHMENT OF THE SAN LUIS RANCH COMMUNITY FACILITIES DISTRICT NO. 2019-1. RECOMMENDATION Adopt an Ordinance (Attachment A) establishing the San Luis Ranch Community Facilities District (CFD) Special Tax DISCUSSION The approved San Luis Ranch Specific Plan allows for a variety of residential and non- residential development on 131 acres located generally between Madonna Road and U.S. Highway 101, south of Dalidio Drive, and is identified by assessor’s parcel number (APN) 067 - 121-022. The Specific Plan was approved on July 18, 2017. The Development Agreement and an amended Specific Plan that provides the basis for the formation of the Community Facilities District (CFD), was approved by the City Council on July 17, 2018. The owners and developers of the San Luis Ranch property have requested, and the City has agreed, to consider formation of a CFD, as reflected in the San Luis Ranch entitlement documents. On February 19, 2019, the City Council adopted a Resolution of Intention, which is the first step in the process to form a CFD. On April 2, 2019, the City Council voted unanimously to introduce an ordinance advancing the formation of the CFD. The ordinance authorizes the levy of a special tax on real property located within the designated boundary of the CFD for a range of purposes including funding reimbursement of investments made by the developer for regional transportation infrastructure and utility improvements. It is common for the special taxes to be used to service munic ipal bonds issued to fund new development -related infrastructure. The Ordinance will become effective 30 days after its adoption. Policy Context The San Luis Ranch Specific Plan and related entitlements are consistent with the 2014 Land Use Element update. Public Engagement On February19, 2019, the City Council held a public hearing regarding the potential formation of a CFD, after which it adopted a Resolution of Intention to form a CFD. Packet Pg. 49 Item 7 Next Steps in the CFD Formation Process Upon adoption of the CFD Special Tax Ordinance all steps in the formation of the CFD will be completed. Within 15 days of adoption of the Special Tax Ordinance the City Clerk is obligated by the Statute to post the Ordinance with the names of Council members voting for and agains t the Ordinance. Within 15 days of the special election, the Clerk will prepare and record a Notice of Special Tax Lien with the County Recorder. ENVIRONMENTAL REVIEW The formation and implementation of the CFD itself may be considered Categorically Exem pt under CEQA, based on Section 15306 of the CEQA Guidelines. This provision of CEQA addresses actions such as “information gathering”, specifically as they relate to “basic data collection” or “research activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded.” In this case, the CFD represents a mechanism that implements research and data collected with respect to project financing and implements development that has already been evaluated under CEQA and previously approved. No further environmental impacts are anticipated as a result of the CFD. The CFD is also Statutorily Exempt from CEQA as part of “an ongoing project”, as defined in Section 15261 of the CEQA Guidelines. FISCAL IMPACT Budgeted: Yes Budget Year: 2019 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund State Federal Fees $60,690 $0 $0 Ongoing administrative costs funded through special tax proceeds. Other: Total: $60,690 $0 $0 $60,690 Packet Pg. 50 Item 7 There will be no net fiscal impact related to forming the CFD. While there will be City costs involved in establishing and administering the San Luis Ranch CFD, these costs can be funded by CFD special tax proceeds. All consultant costs associated with the formation of the CFD are paid for by the developer through reimbursement agreements. The City also charges a 30% fee on developer reimbursement agreements to cover the City’s administration costs. The financial analysis conducted for the formation process has considered and budgeted these costs. ALTERNATIVES 1. Do not adopt the Ordinance. The City Council could choose not to adopt the Special Tax Ordinance, in which case the CFD process is not completed. In this case, the project will not move forward without identifying and implementing an alternative financing mechanism to provide for needed public infrastructure that is a prerequisite for development under the approved Specific Plan. This action would also impair the ability to build the Prado Road Interchange in the near future, since that project depends in part on fees generated by the approved project. 2. Direct modifications and continue the Hearing to a Date Certain. The City Council may continue the hearing to a date certain if it feels additional technical informa tion is needed to complete the CFD process. If additional information is needed, direction should be provided to staff so that it can be presented on that date. Attachments: a - Ordinance Approving a Special Tax to Fund Infrastructure Packet Pg. 51 Item 7 R 1661 ORDINANCE NO. 1661 (2019 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019- 1 (SAN LUIS RANCH) WHEREAS, on February 19, 2019, the City Council (the “City Council”) of the City of San Luis Obispo (the “City”), pursuant to the Mello -Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes” stating its intention to establish City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch) (the “Community Facilities District”) and to finance certain public facilities (the “Facilities”); WHEREAS, on April 2, 2019, the City Co uncil held a noticed public hearing on the establishment of the Community Facilities District, as required by the Act; WHEREAS, subsequent to the close of said hearing, the City Council adopted resolutions entitled “A Resolution of the City Council of the City of San Luis Obispo, California of Formation of the City of San Luis Obispo Community Facilities District No. 2019 -1 (San Luis Ranch), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”), “A Resolution of the City Council of the City of San Luis Obispo, California Deeming it Necessary to Incur Bonded Indebtedness within City of San Luis Obispo Community Facilities D istrict No. 2019-1 (San Luis Ranch)” and “A Resolution of the City Council of the City of San Luis Obispo, California Calling Special Election for City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch),” which resolutions established the Community Facilities District, authorized the levy of a special tax within the Community Facilities District and called an election within the Community Facilities District on the proposition of incurring indebtedness, levying a special tax within the Community Facilities District and establishing an appropriations limit for the Community Facilities District, respectively; and WHEREAS, on April 2, 2019, an election was held in which the qualified electors of the Community Facilities District appro ved said proposition by more than the two -thirds vote required by the Act; NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. The City Council hereby authorizes and levies special taxes within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit B to the Resolution of Formation (the “Rate and Method of Apportionment”). The special taxes are hereby levied commencing in fiscal year 2019-20, and in each fiscal year thereafter until the last fiscal year in which such special taxes are authorized to be levied pursuant to the Rate and Method of Apportionment. Packet Pg. 52 Item 7 Ordinance No. 1661 (2019 Series) Page 2 O 1661 SECTION 2. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the special tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the special tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified therefor in the Rate and Method of Apportionment. SECTION 3. The special tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Rate and Method of Apportionment. SECTION 4. The proceeds of the special tax shall only be used to pay, in whole or in part, the cost of providing the Facilities and incidental expenses pursuant to the Act. SECTION 5. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council. SECTION 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the Community Facilities District shall not be affect ed. This Ordinance shall take effect and shall be in force 30 days after the date of its adoption and prior to the expiration of 15 days from the passage thereof shall be published at least once in the New Times, a newspaper of general circulation, printed and published in the City of San Luis Obispo, State of California, together with the names of the City Council members voting for and against the same. INTRODUCED on the 2nd day of April 2019, AND FINALLY ADOPTED by the Council of the City of San Luis O bispo on ____ day of _____________, 2019, on the following vote: AYES: NOES: ABSENT: ______________________________ Mayor Heidi Harmon ATTEST: Teresa Purrington Packet Pg. 53 Item 7 Ordinance No. 1661 (2019 Series) Page 3 O 1661 City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ____ day of _________________, 2019. Teresa Purrington City Clerk Packet Pg. 54 Item 7 RECEIVED APR 15 2019 I SLO CITY CLERK 1010 Marsh St., San Luis Ob (805) 546-8208 . FAX (8( PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: A'0 I I in the year 2W 9. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis ON , Cafif rnia, this day_ i l vI 1 1 _2019. v 1 & �: - Patricia Horton, New Times Legals Admin M `,e ,I/ -WN IC Adnn/NTNIC Offlu/131 IS INESSII' Mie Noliecsil'i ail oP I'�ib Proof ORDINANCE NO. 1661(2019 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO. CALIFORNIA, ADVANCING THE FORMATION OF THE SAN LUIS RANCH COMMUNITY FACILITIES DISTRICT BY LEVYING SPECIAL TAXES WITHIN THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SANI LUIS RANCH) AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED APRIL $ 2019 NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo, California, at its Regular Meeting of April 2, 2019, introduced the above titled ordinance upon a motion by Council Member Gomez, second by Council Member Christianson, and on the following roll call vote: AYES: Council Members Aaron Gomez, Carlyn Christianson, Erica -Stewart, Vice Mayor Andy Pease, and Mayor Heidi Harmon NOES: None bdinance No. 1661 (2019 Series) - The approved San Luis Ranch Specific Plan allows for a variety of residential and non-residential development on 191 acres located generally between Madonna Road and U.S. Highway 101, south of Deli did Drive, and is identified by assessor's parcel number (APN) 067-121.022. The Specific Plan was approved on July 18,2017. The Development Agreement and an amended Specific Plan that provides the basis for the formation of the Community Faellities District (CFD), was approved by the City Council on July 17, 2018. The owners and developers of the San Luis Ranch property have requested, and the City has agreed, to consider formation of a CFD, as reflected in the San Luis Ranch entitlement documents. On February 19, 2019, the City Council adopted a Resolution of Intention, which is the first step in the process to form a CFD. On April 2, the City Council voted unanimously to introduce an ordinance advancing the formation of the CFD. The ordinance authorizes the levy of a special tax on real property located ,-within the designated boundary of the CFD for a range of purposes including funding reimbursement of .investments made by the developer for regional transportation infrastructure and utility improvements. It is common for the special taxes to be used to service municipal bonds issued to fund new development -related infrastructure. ! NOTICE IS HEREBY FURTHER GIVEN that the City t;ouncil of the City of San Luis Obispo will consider adopting the aforementioned Ordinance at its Regular Meeting of April 16, 2019 at6:00 p.m., which will be held in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California. Copies of the complete ordinance are available in the City Clerk's Office in City Hall and online atwww. 1 slocity.artl- For more information, contact Michael I Codron, 781-7187. Teresa Purrington City Clerk April 11, 2019