Loading...
HomeMy WebLinkAboutReso 1998-19226 II RESOLUTION NO. 19226 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 97-3 (MCMILLIN OTAY RANCH SPA ONE) AND TO AUTHORIZE THE LEVY A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION OF CERTAIN FACILITIES WHEREAS, the City Council, at this time desires to initiate proceedings to create a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 97-3 (MCMILLIN OTAY RANCH SPA ONE) (the "District"); and WHEREAS, this City Council is now required to proceed to adopt its Resolution of Intention to initiate the proceedings for the establishment of such District, to set forth the boundaries for such District, to indicate the type of public facilities the acquisition of which is proposed to be financed by such District, to indicate the rate and apportionment of a special tax sufficient to finance the acquisition of such facilities and the administration of the District and any indebtedness incurred by the District, to set a time and place for a public hearing relating to the establishment of such District; and WHEREAS, a map of such District has been submitted showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. NOW, THEREFORE, IT IS HEREBY RESOLVED: RECITALS SECTION 1. The above recitals are all true and correct. INITIATION OF PROCEEDINGS SECTION 2. These proceedings are initiated by this City Council pursuant to the authorization of Section 53318 of the Government Code of the State of California. BOUNDARIES OF DISTRICT SECTION 3. It is the intention of this City Council to establish a Community Facilities District pursuant to the provisions of the Community Facilities District Law, and to determine the boundaries and parcels on which special taxes may be levied to finance the acquisition of certain facilities. A description of the boundaries of the territory proposed for inclusion in the Resolution 19226 Page 2 District including properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: All that property as shown on a map as previously approved by this City Council, such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. NAME OF DISTRICT SECTION 4. The name of the proposed Community Facilities District to be established shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 97-3 (MCMILLIN OTAY RANCH SPA ONE). DESCRIPTION OF FACILITIES SECTION 5. It is the further intention of this City Council to finance the acquisition of certain facilities. A general description of the type of facilities to be acquired is set forth in Exhibit "A," attached hereto and incorporated herein by this reference. The facilities are facilities which this legislative body is authorized by law to contribute revenue to or to construct, own or operate. It is hereby further determined that the proposed facilities are necessary to meet increased demands and needs placed upon the City and other public agencies as a result of development within the District. The cost of acquiring the facilities includes incidental expenses including but not limited to the costs of planning and designing the facilities; all costs associated with the establishment of the District, the issuance and administration of bonds, including the payment of any rebate obligation due and owing to the federal government, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District, together with any other expenses incidental to the acquisition, construction, completion and inspection of the facilities. SPECIAL TAX SECTION 6. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to pay for such facilities and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the boundaries of such District. Under no circumstances will the special tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than ten percent. For further particulars as to the rate and method of apportionment of the proposed special tax, a copy of which is on file in the office of the City Clerk, known as Document Number C098-195, if which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay. ....-.-- .,..--,.~,-. '--~-~."'---_...__.,_.._..>~,~-_._._-,-----_._----------_._.__.._----_._--~------ -----~ II Resolution 19226 Page 3 The special taxes herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer. PUBLIC HEARING SECTION 7. NOTICE IS GIVEN THAT ON THE 24TH DAY OF NOVEMBER, 1998, AT THE HOUR OF 6:00 P.M., IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH STREET, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED COMMUNITY FACILITIES DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. THAT AT THE ABOVE- MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD, AND THAT THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE DISTRICT, THE EXTENT OF THE DISTRICT, OR THE FINANCING OF THE FACILITIES, WILL BE HEARD AND CONSIDERED. ANY PROTESTS MAY BE MADE ORALLY OR IN WRITING. HOWEVER, ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND CLEARLY SET FORTH THE IRREGULARITIES AND DEFECTS TO WHICH THE OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THE CITY COUNCIL ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF THE DISTRICT IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY PROTEST IS LIMITED TO CERTAIN FACILITIES OR PORTIONS OF THE SPECIAL TAX, THOSE FACILITIES OR THAT TAX SHALL BE ELIMINATED BY THE CITY COUNCIL. ELECTION SECTION 8. If, following the public hearing described in the Section above, the City Council determines to establish the District and proposes to levy a special tax within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of the District. If at least twelve persons, who need not necessarily be the same twelve persons, have been registered to vote within the District for each of the ninety days preceding the close of the pUblic hearing, the vote shall be by registered voters of the District, with each voter having one vote. Otherwise, the vote shall be by the landowners of the District who were the owners of record at the close of the subject hearing, with each landowners or the authorized representative thereof, having one vote for each acre or portion of an acre of land owned within the District. NOTICE SECTION 9. Notice of the time and p.lace of the public hearing shall be given by the City Clerk in the following manner: '" Resolution 19226 Page 4 A. A Notice of Public Hearing shall be published in the "Star-News," a legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven days prior to the date set for the public hearing. B. A Notice of Public Hearing shall be mailed, postage prepaid, to each property owner within the boundaries of the proposed District; such mailing to the property owners shall be to the address as shown on the last equalized assessment roll. Such mailing shall be completed at least fifteen days prior to the date set for the public hearing. RESERVATION OF RIGHTS TO AUTHORIZE TENDER OF BONDS SECTION 10. The City Council reserves to itself, in its capacity as the legislative body of the District if formed, the right and authority to allow any interested owner of property within the District, subject to the provisions of Government Code Section 53344.1 and to such conditions as this City Council may impose, and any applicable prepayment penalties as may be described in the bond indenture or comparable instrument or document, to tender to the Treasurer of the City of Chula Vista, acting for and on behalf of the District, in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. ADVANCES OF FUNDS OR WORK-IN-KIND SECTION 11. At any time either before or after the formation of the District, the City Council may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the District. The City may enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds so advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. The City has entered into a Community Facilities District Reimbursement Agreement, a copy of which is on file in the office of the City Clerk, known as Document Number C098-192, with McMillin - D.A. America Otay Ranch LLC to provide for such advances for the payment of all initial consulting and administration costs and expenses related to the proceedings to consider the formation of the District and to subsequently authorize, issue and sell bonds for the District. Such advances are subject to reimbursement pursuant to the terms of such agreement. No such agreement shall constitute a debt or liability of the City. Presented by Approved as to form by ( - , ~*¿o Jo P. Lippitt P lic Works Director ~Oh tto;n:~ ' J Resolution 19226 Page 5 EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES Street improvements including but not limited to site concrete and street surfacing and appurtenant facilities including but not limited to storm drain, sewer and landscaping improvements; a pedestrian bridge; sewer improvements; and appurtenances and appurtenant work. --..,..-'.. '--~"- . . ! III Resolution 19226 Page 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 20'h day of October, 1998, by the following vote: AYES: Councilmembers: Rindone, Padilla and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Salas ABSTAIN: Councilmembers: Moot ~~ Shirley Hort ,Mayor ATTEST: STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19226 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 20'h day of October, 1998. Executed this 20th day of October, 1998. ~O~~ Beverly A. Authelet, City Clerk ,-'--- EXHIBIT A RATE AND METHOD OF APPORTIOi\'MENT FOR CITY OF CHULA VISTA COìVThIUNITY FACILITIES DISTRICT NO. 97-03 (OTAY RANCH MC MILLIN SPA Oi\'E) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Chula Vista Community Facilities District No. 97-03 ("CFD No. 97-03") and collected each Fiscal Year commencing in Fiscal Year 1999-2000, in an amount determined by the City . Council through the application of the appropriate Special Tax for "Developed Property," "Taxable Property Owner Association Property," and "Undeveloped Property" as described below. All of the real property in CFD No. 97-03, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parce1. If the preceding maps are not available, the Acreage shall þe determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 97-03: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture: the costs to the City, CFD No. 97-03 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 97-03 or any designee thereof of complying \vith City, CFD No. 97-03 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act: the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 97-03 or any designee thereof related to an appeal of the Special Tax: and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 97-03 for any other administrative purposes of CFD No. 97-03, including attorney's fees and other costs \ ,j City of Chu[a Visra October 8, 1998 1I_2Jf~,!8 Ç~'~I_'!~l!!'I~l1_F~çilities District ¡'Va. 97-03 Pa~' 1 ",Jared ro co:-:unencing and pursuing to completion any foreclosure of deJmquem Spe=;~: Tax~s. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map wirh ar; assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the Counry designating parcels by Assessor's Parcel number. "A vailable Funds" means the balance in the reserve fund established pursuanr to the terms of the Indenture in excess of the reserve requirement as defined in such IndenturE, delinquent special tax payments, foreclosure proceeds, the portion of proceeds of Backup Special Tax payments and Special Tax prepayments collected to pay interest on Bonds, and other sources' of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the special tax that is required to be paid as a condition precedent to the issuance of building permits or recordation of final maps, as determined in accordance with Section E below. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 97-03 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsibie for determining the Special Tax .Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 97-03" means City of Chula Vista Community Facilities District No. 9Î-03 (Otay Ranch McMillin SPA One). "City" means the City of Chula Vista. "Council" means the City Council of the City, acting as the legislative body of CFD No. 97-03. "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Community Purpose Facility Property" means all Assessor's Parcels of Developed Property which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "County" means the County of San Diego. City of Chula Vista October 8, 1998 Community Facilities Disln"ct ¡Vo. 97-03 Pa~e 2 .-~--'----"'-'~-" ...-......,-- "Developed Property" means. for each' Fiscal Year, all Taxable Property, exclusive of Taxable Property Owner Association Property for which a building permit for new construction was issued prior to April I of the prior Fiscal Year. "Development Projection" means an annual calculation for each Planning Area of CFD No. 97-03 of (i) the number and IOtal Residential Floor Area of existin" dwell in" <> <> units of Residential Property, the number of existing Acres of Commercial Property, and the number of existing Acres of Community Purpose Facility Property and (ii) a projection of all future development, including the acreage, projected number of residential dwelling units, projected Residential Floor Area, projected Commercial Property Acres, projected Community Purpose Facility Property Acres, and an absorption schedule for all furure development in CFD No. 97-03. The Development Projection shall be dated as of April 1 and prepared each Fiscal Year by the Master Developer. Upon submittal, the CFD Administrator shall review, modify if necessary, and approve the Development Projection. If the Development Projection is not received by the CFD Administrator on or before May 1, the CFD Administrator shall then prepare or cause to be prepared a Development Projection. "Final Residential Subdivision" means a subdivision of property created by recordation of a final map, parcel map, or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which residential building permits may be issued without further subdivision of such property. "Fiscal Year" means the pei-iod starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table I. "Master Developer" means the owner or owners of the predominant amount of Undeveloped Property in CFD No, 97-03. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Occupied Residential Property" means all Assessor's Parcels of Residential Property which have closed escrow to an end user. "Outstanding Bonds" means all Bonds which remain outstanding. City of Chulo Vista October 8, 1998 Community Faciliries District :Vo_ 97-03 Pnøp 3 m_.__._,___~____·________ "Planning Areas" means [hose areas shown on Exhibit A. Minor adjustments In [he boundaries of the Planning Areas may be made by the CFD Administrator [0 conform ro the tentative and final maps approved for these areas. "Property Owner Association Property" means any property within the boundaries of CFD No. 97-03 owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of [he actual Special Tax íevy to the Maximum Annual Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 97-03. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property in CFD No. 97-03. "Public Property" means any property within the boundaries of CFD No. 97-03 that is used for rights-of-way or any other purpose and is owned by or dedicated to the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or sim!iar area. The determination of Residential Floor Area shall be made by reference to appropriate records kept by the City's Building Department. Residential Floor Area will be based on the building permit(s) issued for each dwelling unit prior to it being classified as Occupied Residential Property, and shall not change as a result of additions or modifications made after such classification as Occupied Residential Property. "Special Tax" means the (i) annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement and (ii) the backup special tax that may be required as a result of changes in development. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 97-03 to: (i) pay annual debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including bur not limited to, credit enhancement and rebate payments on the Bonds: (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) and pay directly for acquisition and/or construction of which are authorized to be financed by CFD No. 97-03: (vi) less a credit for Available Funds. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 97-03 which are not exempt from the Special Tax pursuant to law or Section F below. City of Chula Vista October 8, 1998 Community Facilities District No. 97-03 PnpP 4 "~"'--+-'.~_.__."--""---~._._--'--". "Taxable Property Owner Associatio'n Property" means all Assessor's Parceìs of Property Owner Association Property that are not exempt pursuant to Section F below. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAl"ffi USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 97-03 shall be classified as Developed Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to the levy of annual Special Taxes detennined pursuant to Sections C and D below. Developed Property shall be assigned to Land Use Classes I through 3 as listed in Table 1 based on the primary land use of each such Assessor's Parcel. The Maximum Annual Special Tax for Residential Property shall be based on the Residential Floor Area of the dwelling units located on the Assessor's Parcel. The Maximum Annual Special Tax for Commercial Property and Community Purpose Facility Property shall be based on the Acreage of the Assessor's Parcel. C. MAXIMUM A.~AL SPECIAL TAX RATE 1. Developed Property. The Ma-ximum Annual Special Tax for each Land Use Class of Developed Property shall be the amount shown in Table 1 below. TABLE 1 Maximum Annual Special Taxes for Developed Property Community Facilities District No. 97-03 Land Use Class Description Maximum Annual Special Tax , I Res idential Property $0.392 per square foot of Residential Floor Area 2 Commercial Property $4,000 per Acre 3 Community Purpose Facility Property $1,000 per Acre City oj CllUla Vista October 8, 1998 rnmmnnitv 'Pnrj/i,;pf; Di<::frŸrf,Vn Q7_n~ Pnup ~ . ._."._..._,_._~.._--_.,..._~..._--_._.-,._--"-- -- --.-. ~ Undeveloped Property and Tàxable Property Owner Association Property The Maximum Annual Special Tax for Undeveloped Property and Taxable Property Owner Association Property in CFD No. 97-03 shall be $7,954 per Acre. D. METHOD OF APPORTIONME!'<i OF THE SPECIAL TAX Commencing with Fiscal Year 1999-2000 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Annual Special Tax. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Annual Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Annual Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, ûnder no circumstances will the Special Tax levied against any Assessor's Parcel of Occupied Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel within the CFD. E. BACKUP SPECIAL TAX The following definitions apply to this Section E: "Actual Average Special Tax Per Unit" means, for each Planning Area, the Actual Special Tax Revenue divided by the sum of the number of units included in any current building permit application(s) plus the number of units within such Planning Area for which building permits have previously been issued. Any building permits issued after an Assessor's Parcel has been classified as Occupied Residential Property shall not be included in determining the Actual Average Special Tax Per Unit. "Actual Special Tax Revenue" means, for each Planning Area, the sum of the total Residential Floor Area shown on any current building permit application(s) plus the total Residential Floor Area from any previously issued building permits within the Planning Area multiplied by the applicable Maximum Annual Special Tax. Any building permits issued after an Assessor's Parcel has been classified as Occupied Residential Property shall not be included in determining the Actual Special Tax Revenue. City of C/lUla Vista October 8, 1998 C011l11lunif1.' Facilitip<; DÌSlrirtrVn 97-Di PnøÞ h "Backup Special Tax Fund" means, for each Planning Area, the fund or account identified in the Indenture to hold Backup Special Tax payments received from properLY owners within such Planning Area. "Expected Special Ta:I( Revenue" means, with respect to each Planning Area, the amount shown in the column so labeled in Table 2 "Required Average Special Tax Per Unit/Acre" means, for each Planning Area, the Expected Special Tax Revenue divided by the total expected number of dwelling units or non-residential Acres (as applicable) expected to be developed within the Planning Area, as determined by the CFD Administrator based on tentative maps, Final Residential Subdivision maps, the Development Projection, and all other relevant information available to the CFD Administrator. In cases where residential and non-residential property are both included within a Planning Area, the CFD Administrator may adjust the Required Average Special Tax Per Unit/Acre as necessary. "Share of Annual Debt Service" means, for each Planning Area, the maximum annual debt service on the Bonds multiplied by that Planning Area's percentage of the total Special Tax revenue, as shown in Table 2 below. A Planning Area's Share of Annual Debt Service shall be adjusted to reflect any prepayments within that Planning Area. 1. Expected Development and Special Tax Revenues Table 2 below identifies the amount of development and Special Tax revenue that is currently expected'from each Planning Area. Table 2 may be revised by the CFD Administrator if the Planning Area boundaries are modified. City of Chu/a Vista October 8, 1998 r~_._.....;.... r__:';,,:__ n:_........:_. ,,_ "... ",. - - . -",--,,"~-."-_._,_.,-,~--,,---,---,-~-_._,-,,--,.. -...-.--. TABLE 2 Expected Development and Special Tax Revenue by Planning Area Community Facilities District No. 97-03 NUMBER EXPECTED OF TOTAL SPECIAL PERCENT PLANNING EXPECTED UNITS/ RESIDENTIAL TAX OF TOTAL AREA PRODUCT TYPE ACRES FLOOR AREA REVENUE REVENUE R-I-ll Residential Prouerty 120 units 344,760 $135,146 14.22% R-I-22 Residential Property 86 units 156,864 $61,491 6.47% R-I-23 Residential Property 87 units 173,391 $67,969 7.15% R-I-24 Residential Property 138 units 352,038 $137,999 14.52% R-I-46 Residéntial Property 117 units 158,535 $62,146 6.54% CPF-I-4 Community Purpose 4.8 acres NA $4,800 0.51 % Facilitv PrODertv R-I-12 Residential Property 103 units 205,279 $80,469 8.48% R-I-41 Residential Property 90 units 166,500 $65,268 6.87% R-I-42 Residential Property 74 units 134,976 $52,911 5.57% R-I-40 Residential Property 201 units 251, 250 $98,490 10.37% R-I-43 Residential Property 240 units 234,000 $91, 728 9.65% R-I-44 Residential Property 200 units 195,000 $76,440 8,05% R-I-45 Residential Property 18 units 17,550 $6,880 0.72% C-I-2 Commercial Property 2.1 acres NA $8,400 0.88% TOTAL I NA 1,474 units NA $950,137 100.00% 2. Calculation of Required Average Special Tax Per Unit/Acre At the time the first building permit application for a Planning Area is submitted to the City, the CFD Administrator shall calculate the Required Average Special Tax Per Unit/Acre. 3. Backup Special Tax due to Loss of Units/Acres If at any time after the Required Average Special Tax Per Unit/Acre has been calculated initially for a Planning Area, the CFD Administrator determines that based on tentative maps, Final Residential Subdivision maps, the Development Projection, and any other available information there has been a reduction in the total expected number of dwelling units or non-residential Acres within that Planning Area, then a Backup Special Tax payment shall be required for each lost unit or Acre prior to the issuance of any additional building permits or the recordation of any additional final maps for such Planning Area. 4. Backup Special Tax due to Loss of Residential Floor Area For Planning Areas that include Residential Property, before each building permit City of Chula VÏsta October 8, 1998 r"...._..._:..... r:-._:/:.:__ " _._~_~ '"_ ,.,........., - n _...,,------_._-_."-~~...-".- --. (Dr group of permits) is issued, the CFD Administrator shall ca1culate the Acrual A v~rage Special Tax Per Unit for the Planning Area. If the AcruaJ Average Special Tax Per Unit is less than the Required Average Special Tax Per Unit then a Backup Special Tax payment will be required prior to issuance of the building permit(s) included within the calculation. 5. Calculation of Backup Special Tax The Backup Special Tax payment amount will be ca1culated using the prepayment formula described in Section 1.1, with the following exceptions: (i) if the Backup Special Tax is required as a result of Section E.3, then the amount used in Paragraph 1 of the prepayment formula described in Section 1.1 shall equal the numqer of lost units or Acres, as applicable, times the Required Average Special Tax Per Unit! Acre; (ii) if the Backup Special Tax is required as a result of Section EA, then the amount used in Paragraph 1 of the prepayment formula described in Section 1.1 shall equal the difference between the Acmal Average Special Tax Per Unit and the Required Average Special Tax Per Unit times the sum of the number of units for which permits are being issued plus the number of units within the Planning Area for which building permits have previously been issued. The amount determined pursuant to the preceding sentence shall be reduced by the balance in the Backup Special Tax Fund that has been established for such Planning Area; (iii) in Paragraph 5 of the prepayment formula described in Section 1.1, compute the amount needed to pay interest on the Bond Redemption Amount until the first redemption date that occurs after five years from the date of the first Backup Special Tax payment in the Planning Area; (iv) any Backup Special Tax payments received for a Planning Area (less Administrative Fees and Expenses) shall be deposited into the Backup Special Tax Fund for that Planning Area and disbursed pursuant to the Indenmre; and (v) the Maximum Annual Special Taxes applicable to property within a Planning Area shaU not be reduced or relieved as a result of payment of the Backup Special Tax. 6, Use/Release of Backup Special Tax Payments When a Plartning Area reaches full buildout (i.e. all expected building permits have been issued), the CFD Administrator shall calculate the actual Developed Property Maximum Annual Special Tax revenues that will be generated from such Planning Area. If the actual Developed Properly Maximum Annual Special Tax revenues are grearer than or equal to I. I times that Planning Area's Share of Annual Debt Service, the balance in the Backup Special Tax Fund shan be remrned to the payer. If Backup Special Taxes have been paid by more than one entity, the amount of Backup Special Taxes returned to each payer shall be in proportion to the amount paid by each entity. If the actual Developed Property Maximum Annual Special Tax revenues are less than 1.1 times that Planning Area's Share of Annual Debt Service, then to the extent necessary to generate 110% coverage, the balance in the Backup Special Tax Fund shall be used to redeem bonds on the next available redemption date. Any moneys remaining in Backup Special Tax Fund shaU be returned to the payer. If a Planning Area has not reached full buildout within five City of Chu[a Vista Ocrober 8, [998 r"P7>n..'..;.... r;",,;I:~;~~ n;_._'A' .\."" n.., t1J n _ _ n -~~- . -"-_.._._._~..._-_.._._-"~-_._- . ......- years after the first payment of Backup Special Taxes for such Planning Area. then all moneys in the Backup Special Tax Fund shall be used to redeem bonds on the next a vailable redemption date. F. EXEMPTIONS No Special Tax shall be levied on up to 155.385 Acres of Property Owner Association Property and Public Property. Tax-exempt status will be irrevocably assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property. After the limit of 155.385 exempt Acres has been reached, the Maximum Annual Special Tax obligation for any additional Public Property shall be prepaid in full by the seller pursuant to Section 1.1, prior to the transfer/dedication of such property. Property Owner Association Property that is not exempt from Special Taxes under this section shaH be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the third step in Section D above, at up to 100% of the Maximum Annual Special Tax for Taxable Property Owner Association Property. G. REVIEW/APPEAL COMMITTEE The Council shaH establish as part of the proceedings and administration of CFD No. 97- 03 a special three-member Review/Appeal Committee. Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may file a written notice with the Review/Appeal Committee appealing the amount of the Special Tax levied on such Assessor's ParceL The Review/Appeal Committee may establish such procedures as it deems necessary to undertake the review of any such appeaL The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shaH be final and binding as to all persons. H. MANNER OF COLLECTION The annual Special Tax shaH be coHected in the same manner and at the same time as ordinary ad valorem property taxes: provided, however, that CFD No. 97-03 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels which are delinquent in the payment of Special Taxes. Landowners shall pay the Backup Special Tax directly to the City upon notification of the Backup Special Tax amount due, prior to the issuance the building permits or recordation of the final map, as applicable, upon which the calculation of such Backup Special Tax is based. Backup Special Tax payments may be made in cash or as a le[[er of credit with terms acceptable to the CFD Administrator. City of Chu/a Vista October 8, 1998 Community Facilities District /\/0. 97-03 P"aø In -. .---,.----.-.--.-.--------.-- Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and condirions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 1. PREPAYME",'T OF MAXIMUM ANNUAL SPECIAL TAX The following definition applies to this Section 1: "Outstanding Bonds" means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding BQnds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. 1. Payment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied by an Assessor's Parcel of Developed Property, Undeveloped Property for which a building perrnit has been issued, or Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Maximum Annual Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel and may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The Prepayment Amount (defIDed below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: City of Chula Vista October 8, 1998 rnmm"n;n... ¡:;'nrif;";oC" ni"rnr' \in 07 (}2 n .. Paragraph No.: I. For Assessor's Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for such Assessor's Parcel using the Maximum Special Tax for Undeveloped Property. 2. Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the total expected Special Tax revenues as shown in Table 2 in Section E, excluding any Assessor's Parcels which have been prepaid. 3, Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount "). 4. Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. Compute the amount needed to pay interest on the Bond Redemption Amount frorrì the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 6. Confirm that no Special Tax delinquencies apply to such Assessor's Parce1. 7. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid, 8. Compute the amount the CFD Administrator expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed wirh the prepayment. 9. Add the amounts computed pursuant to paragraphs 5 and 7 and subtract the amount computed pursuant to paragraph 8 (the "Defeasance Amount"). 10. Verify the administrative fees and expenses of CFD No. 97-03, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, [he cosrs of redeeming Bonds, and the costs of City of Chula Vista October 8, 1998 CommunÌt\' Fnrilit;pç niclrr"rf ,Vn O7_n1 n___ ,,, "-~-'-'--"--'------"--'---'-'-'---"~-'---- "..... -'- recording any notices to evidence the prepayment and the redemption (the 'Admillisirailve Fees and Expenses "). 11. If reserve funds for the Outstanding Bonds, if any, are at or above 95 % of the reserve requirement (as defined in the Indenture) on the prepayment date. a reserve fund credit (the "Reserve Fund Credit") shall be calculated as follows: (i) if the reserve funds are at or above 100 % of the reserve requirement, the Reserve Fund Credit shall equal the actual reduction in the reserve requirement, if any, as a result of the prepayment, or (ii) if the reserve funds are at 95 % or between 95 % and 100 % of the reserve requirement, the amount calculated pursuant to paragraph 11 (i) shall be reduced by the percentage by which the reserve fund is below the reserve requirement. No Reserve Fund Credit shall be granted if reserve funds are below 95 % of the reserve requirement. 12. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the fIrst interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 13. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 3, 4, 9 and 10, less the amounts computed pursuant to paragraphs 11 and 12 (the "Prepaymem Amollni"). . From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, 11 and 12 shall be deposited into the appropriate funds as established under the Indenture. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 97-03. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 (above). the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Maximum Annual Special Taxes and the release of the Maximum Annual Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Maximum Annual Special Tax shall cease. Notwithstanding the foregoing. no Maximum Annual Special Tax prepayment shall be allowed unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within CFD No. 97-03 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. City oj Chula Vista October 8, 1998 Community Facilities Distn"ct So. 97-03 Pnno T~ _._-~-_.."~~~--_._._---_._-~-_._-_.... Tend~rs of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 1.1; except that a partial prepayment shall be calculated according to the following formula: PP '= h x F. These terms have the following meaning: pp = the partial prepayment PE = the Prepayment Amount calculated according to Section 1.1 F= the percent by which the owner of the Assessor's Parcells) is partially prepaying the Maximum Annual Special Tax. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum Annual'Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this servIce . With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to the Indenture, and (ii) indicate in the records of CFD No. 97-03 that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. J. TERM OF MAXIMUiVI A~'NUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 1999-2000 to the extent necessary to meet the Special Tax Requirement for a period not to exceed thirty-five years. F.I WORK7.~CUE.\TS: CHlL41.,/S.1.4 .HE.UO'cfd97-J'R.\!.4R.\!.4 /0_ CHCL4.doc R~viscd: Oc!Ober 8. 1998 City of Chula Vista October 8, 1998 Community Facilities District No. 97-03 Pa~e ].I