75B - PH TO ADOPT SCIP - Laserfiche WebLink

Home Browse Search

Resolution to Join SCIP October 20, 2020 Page 3 • CSCDA handles all district formation, district administration, bond issuance and bond administration functions. A participating jurisdiction can provide tax-exempt financing to property owners through SCIP while committing very little staff time to administer the program. At its discretion, the local agency can charge an administrative fee to cover staff time taken to review the SCIP application and request for funding. • Providing tax-exempt financing helps participating cities cushion the impact of rising public capital improvements costs and development impact fees on property owners. • The availability of financing can encourage developers to pull permits and pay fees in larger blocks, giving the participating jurisdiction immediate access to revenues for public infrastructure, rather than receiving a flow of revenues stretched out over time. As part of the entitlement negotiation process, the possibility of tax-exempt financing of fees can be used to encourage a developer to pay fees up front. • In some cases, the special assessments on successful projects can be refinanced through refunding bonds. Savings achieved through refinancing will be directed back to the participating jurisdiction for use on public infrastructure, or credits to property owners, subject to applicable federal tax limitations. • SCIP is an important tool for developers in determining the overall feasibility of a project and in certain instances the decision to purchase land. As the lead for this program, the City's Economic Development Division will provide administrative assistance by: (a) reviewing the application to perform the verification, (b) coordinate review, finalization, and execution on behalf of the City of the acquisition agreement (Exhibit 1) when eligible improvements are being financed, (c) monitor progress and completion of construction of eligible improvements for purposes of submitting reimbursement requisitions pursuant to the acquisition agreement, if any, (d) sign a closing certificate and (e) administer the requisition process for disbursement of those eligible impact fees which have been financed by the SCIP Program. The City's administrative costs mentioned above will be recovered at bond issuance on an individual project basis. The proposed resolution authorizes CSCDA to accept applications from owners of property within our planning jurisdiction to apply for tax-exempt financing of public capital improvements and development impact fees through SCIP. It also authorizes CSCDA to form assessment districts within our City's boundaries, conduct assessment proceedings and levy assessments against the property of participating owners. It approves the form of an acquisition agreement, attached to the resolution as Exhibit B, to be entered into between the City and the participating property owner/developer, if applicable, to provide the terms and conditions under which financing for public capital improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed facilities. It also authorizes miscellaneous related actions and makes certain findings and determinations required by law. California Environmental Quality Act (CEQA) Pursuant to § 15060(c) of the California Environmental Quality Act (the "CEQA") Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or 75B-3