25F - FORMATION OF COMMUNITY FACILITIES DISTRICTS

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Agreements/Appropriation Adjustment For Services Relating to Formation of Community Facilities District September 19, 2005 6. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute a Legal Services agreement with Quint & Thimmig, LLP for bond consulting services necessary in the formation of a Community Facilities District at the MacArthur Place South Project site. 7. Approve an appropriation adjustment recognizing all deposits to be provided by developers into the Capital Outlay Fund (account no. 51- 01-5790) and appropriating the same into the Capital Outlay expenditure account (account no. 51-106-6291) for appropriating developer contributions relating to services necessary for the establishment of a Community Facilities District at the MacArthur Place South Project site. DISCUSSION On June 20, 2005 the City Council approved the resolutions, ordinances, and variances regarding the MacArthur Place South Project. The project entails the construction of 791 condominium units which is comprised of three 25-story high rise condominium buildings with 500 units, a four- to six-story, 276 unit condominium building and a five-story mixed use building with 10,000 square feet of office uses and 15 residential units. In addition, approximately 14,000 square feet of retail and restaurant uses are proposed for the project. Coastal Rim Properties, Nexus Development Corporation, and Integral Partners have requested that the City consider formation of a Mello-Roos Community Facilities District (CFD) for the MacArthur Place South Project. The Mello-Roos Community Facilities Act, which was enacted in 1982, allows for financing public facilities and services through the selling of tax- exempt bonds and the levying of a special tax under a CFD. If successful, the formation of a CFD would allow the City to partner with the developers as a means to finance public infrastructure improvements as well as ongoing City services impacted by the MacArthur Place South Project. The developers have agreed to deposit funds to pay for the ongoing consultant services related to the formation of the CFD. It is anticipated that total cost of consultant services will be approximately $130,000. The consultant services include identifying eligible facilities and services to be financed, appraisal and bond sizing analysis, market absorption as well as price point feasibility, rate and method of apportionment of the special tax, and assistance with overall coordination and formation of the CFD. 25F-2