HomeMy WebLinkAboutOrd 2016-3375 ORDI?�'ANCE \O. 337�
ORD[NAI�TCE OF THE CITY COLT�CIL OF THE CITY OF
CHULA VISTA ACTII�'G AS THE LEGISLATTVE BOD1' OF
COn4D4UT'ITY FACILITIES DISTRICT N0. 16-I (MILLENIA).
AUTHORIZII`'G THE LE\J1' OF .A SPECIAL TAX IN
IMPROVEMENT AREA NO. 1 AivD IMPRO\rEME?�'T AREA
NO. 2 OF SUCH COA4A4LNITY FACILITIES DISTRICT
V�Z-IEREAS, the City Council of the Cih of Chula \'ista (the �`Cin Council"), has
initiated proceedines, held a public hearing, conducted an election and recei��ed a favorable ��ote
from the qualified electors authorizine the lev�� of special taxes in the improvement areas of a
communitv facilities district, all as authorized pursuant to the terms and provisions of the
`Mello-Roos Communiri Facilities Act of 1982", being Chapter 2.�, Part l. Division 2, 7itle �
of the Govemment Code of the State of Califomia (the ��Acr`) and the Citv of Chula Vista
Communih� Facilities District Ordinance enacted pursuant to the po���ers resen�ed b�� the Cih- of
Chula Vista under Sections 3. 5 and 7 of Article XI of the Constimtion of the State of California
(the "Ordinance�') (the Act and the Ordinance may be referred to collectivel}� as the "Community
Facilities District LaH"). This communit�� facilities district shall hereinafrer be referred to as
Communit�� Facilities District No. 16-I (A9illenia) (the "Districr') and the improvement azeas
shall be hereinafter referred to as Impro��ement Area No. 1 and Impro�=ement Area \'o. 2 (each,
an "Improvement Area' or, collectivelv, the "Impro�ement Areas `).
THE CITY COUI�TC[L OF THE C[TY OF CHULA VISTA ACTR�iG AS THE
LEGISLATNE BODl' OF COMNfU�'I7Y FACILITIES DISTWCT NO. 16-I (A4ILLENIA).
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION l. This Cit}� Council does; by the passaee of this ordinance, authorize the
le��� of special ta�es on ta�able properties located in Impro��ement rlrea No. 1 and Impro��ement
Area No. 2 of the District pursuant to the applicable Rate and Method of Apponionment of
Special Ta�es as set forth in Eshibit "A" attached hereto and incorporated herein b�� this
reference (each, a "Rate and Method").
SECTION 2. This City Council, acting as the leeislative bod�� of the District, is hereb��
further authorized, b�� Resolution; to annuall�� determine the special ta� to be levied ���ithin each
of the Improvement Areas for the then current tax ��ear or future tax ��ears; pro��ided; ho«ever.
the special taz to be le��ied shall not e�ceed the maximum special ta� authorized to be le��ied
pursuant to the applicable Rate and Method.
SEC7�I0\ 3. The special [a�es herein authorized to be le��ied, to the e�tent possible:
shall be collected in the same manner as ad valorem propert�� taxes and shall be subject to the
same penalties, procedure. sale and lien priority in an}� case of delinquency as applicable for ad
valorem ta�es; pro��ided, ho�ve��er, the District ma�� utilize a direct billine procedure for an}�
special ta�es that cannot be collected on the County tas roll or mav, b�� resolution_ elect to collect
the special ta�es at a different time or in a different manner if necessarv to meet its financial
obli��ations.
Ordinance No. 337�
Page No. 2
SECTION 4. The special tazes authorized to be levied sha11 be secured by the lien
imposed pursuant to Sections 3114.5 and 311�S of the Streets and Highways Code of the State
of California, which lien shall be a continuing lien and shall secure each levy of the special taxes.
The lien of the special taxes shall continue in force and effect until the special tax obligation is
prepaid, permanently satisfied and canceled in accordance with Section 53344 of the
Govemment Code of the State of Califomia or until the special tax ceases to be levied by the
City Council in the manner provided in Section �3330.5 of said Government Code.
SECTION �. This Ordinance sl�all be effective thirty (30) days afrer its adoption.
Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be
published in a newspaper of general circulation in the City pursuant to the provisions of Chula
Vista's City Charter, Section 3l2(b).
Presented by Approved as to form by
,
, �
�ir��� ��
Kelly G. Broughton, FASLA Glen R. Go gins �
Director of Development Sen�ices Ci� Attorn
Ordinance No. 337�
Paee No. 3
PASSED. APPROVED. and ADOPTED b�� the Cit�� Council of the Cit�� of Chula Vista.
California. this 20th da�� of September 2016, b�� the following vote:
AYES: Councilmembers: A¢uilar. Bensoussan. ?�4cCann. Miesen. and Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
n4ary as, Mayor
ATTEST:
r
Donna R. Norris. CA . Citv Clerk
STATE OF CALIFORl�'IA ) �
COUI�'TY OF SAN D[EGO )
CITY OF CHULA VISTA )
I. Donna R. Noms. Cih� Clerk of Chula Vista. Califomia. do herebvi certifi� that the foreeoine
Ordinance No. 337� had its first reading at a reeular meeting held on the lith dav of September
2016 and its second readine and adoption at a regulaz meeting of said Ciry Council held on the
20th dav of September 2016; and was duly published in summan form in accordance ���ith the
requirements of state law and the Cih� Charter.
� 5, ZolCo j� �C � o�S d
Dated Donna R. Noms. CMC. Ciri� Clerk
�
Ordinance No. 337�
Page I�ro. 4
EXHIBIT A
RATES Al�'D METHODS OF APPORTIONMENT FOR
CITY OF CHULA VI5TA
COMMUNITY FACILITIES DISTRICT NO. 16-I
(MILLENIA)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. l6-I (MILLENIA)
IMPROVEMENT AREA NO. 1
A Special Ta� shall be levied on all Taxable Property within the boundaries of Improvement
Area No. 1 of Communit}� Facilities District No. 16-I (Millenia) of the City of Chula Vista
("IA1") and collected each Fiscal Year commencing in Fiscal Year 2016-17, in an amount
determined by the CFD Administrator through the application oF the procedures described
below. All of the real property within IA1, unless exempted by law or by the provisions hereof;
shall be taxed for the purposes, to the eatent, and in the manner herein provided.
l. 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 showm on an Assessor's Parcel Map, the land area shown on
the applicable Final Map. An Acre means 43,�60 square feet of land. If the preceding maps for a
land area are not available, the Acreage of sucl� land area shall be determined by the City
Engineer.
"AcY' means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5
of Part 1 of Dieision 2 of Title 5 of the Govemment Code of the State of Califomia.
"Administrative Expense Requirement" means an annual amount equal to $75,000, or such
lesser amount as may be designated by wriYten instruction from an authorized representative of
the City to the Fiscal Agent, to be allocated as the first priority of Special Taxes received each
Fiscal Year for the payment of Administrative Expenses.
"Administrative Ezpenses" means the following actual or reasonably estimated costs related to
the administration of IA1 including, but not limited to: the costs of preparing and computing the
Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the
Special Taxes (whether by the City, the County or otherwise); the costs of remittinb the Specia]
Taxes to the Fiscal Agent the costs of lhe Fiscal Agent (including its legal counsel) in the
dischar�e of the duties required of it under the Fiscal Agent A�reement; the costs to the City;
CFD No. 16-1; or an�� desianee thereof complying «�ith arbitrage rebate requirements, including
without limitation rebate liabilit�� costs and periodic rebate calculations; the costs to the City,
CFD No. 16-1, or any designee thereof compl}�ing with disclosure or reporting requirements of
the Cit}� or CFD No. 16-L associated w�iili applicable federal and State laws; the costs associated
Ordinance No. 3.i7>
Pase No. �
H�ith preparing Special Ta� disclosure statements and responding to public inquiries reearding
the Special Ta�es; the costs to the Cin, CFD No. 16-I, or anv designee thereof related to an
appeal of the Special Tax: and the Citv's annual administration fees and third party expenses.
Administrati��e Expenses shall also include amounts estimated or advanced bv the Cin- or CFD
No. 16-I for any other administrative purposes of CFD No. 16-I. includin2 attome��'s fees and
other costs related to commencine and pursuing an}� foredosure of delinquent Special Taxes.
"Annual Special Tas" means the Special Ta� actuallv le�ied in an�� Fiscal Yeaz on an��
Assessor's Parcel.
"Assessor" means the Assessor of the County of San Diego.
"Assessor's Parcel" means a lot or parcel sho���n on an Assessor's Parcel A4ap �;�ith an assiened
Assessor's Parcel \umber.
"Assessor's Parcel 17ap" means an official map of the Assessor designating parcels bv
Assessors Parcel Number.
"Assessor's Parcel \`umber" means the number assiened to an Assessor's Pazcel b�� the Countv
for purposes of identification. �
"Assigued Special Tax" means the Special Tax of that name described in Section 3.A beloti�.
`Backup Special Tax" means the Special Ta� of that name described in Section 3.B below.
`Bonds" means anv bonds or other debt of CFD \'o. 16-I issued or incurred for IAI. H�hether in
one or more series, secured by the le���• of Special Taxes.
`Building Permit" means a buiiding permit for construction of a Residential Unit or non-
residential structure �vithin IA] issued bv the Citv.
`Building Square Footage" means all of the square footaee of li��ine area within the perimeter
of a residential structure. not including an�� carport, ���alkwa��; garage, overhan�, or similar area.
The determination of Building Squaze Footaee shall be made b}� the CFD Administrator by
reference to the Buildine Permit(s) issued for such Assessors Parcel and/or by reference to
appropriate records kept b�� the City. Building Square Footase for a Residential Unit will be
based on the Buildina Permit(s) issued for such Residential Unit prior to it beine classified as
Occupied Residential Propert��, and shall ❑ot chanee as a result of additions or modifications
made to such Residential Unit after such classification as Occupied Residential Property.
"Calendar 1'ear" means the period commencin� January 1 of am• ��ear and ending the follo�ving
December 31.
"CFD Administrator" means an authorized representati��e of the Cit��. or desivnee thereof,
responsible for determinin� the Special Ta� Requirement. for preparing the Annual Special Ta�
roll and/or calculating the Backup Special Tax.
Ordinance No. 337�
Paae No. 6
"CFD No. 16-I" means the Community Facilities District No. 16-I (Millenia) of the City of
Chula Vista.
"Cih'" means the Cit�� of Chula Vista; California.
"City CounciP' means the City Counci] of the City acting as the legislative body of CFD No.
16-1 under the Act.
"Condomiuium" means a unit, whether attached or detached, meeting the statutory definition of
a condominium contained in the California Civil Code Section 4285.
"County" means the County of San Diego, California.
"Dcbt Service" means for each Fiscal Year, the total an�ount of principal and interest payable on
any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year.
"Developed Properh�" means for each Fiscal Year, all TaYable Propem�, exclusive of
Provisional Property, for ti�hich a Building Permit was issued prior to March 1 of the previous
Fiscal Year. An Assessor`s Pazcel classified as Developed Property but Por which the Building
Permit that caused such Assessors Parcel to be dassified as Developed Property has been
cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be
redassified as Undeveloped Property, provided that the levy of the Annual Special Tax afrer
such reclassification shall not be less than 11 times the annual Debt Service less Administrative
E�:penses on all Outstanding Bonds. If Bonds have not been issued, an Assessor's Parcel
classified as Developed Property for which such a Building Permit has been cancelled and/or
voided shall be reclassified as Undeveloped Property.
"De��elopment Agreement" means that certain Development Agreement by and between the
City of Chula Vista and McMillin Otay Ranch LLC adopted October 6, 2009 and recorded with
the County of San Diego's Recorders office on October 27, 2009 as Document Number 2009-
0�951 16, as may be amended and/or supplemented from time to time.
"Exempt Property" means for each Fiscal Year, all Assessor's Parcels designated as being
eaempt from Special Taxes pursuant to Section 5 below.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code
Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil
Code 4285 that creates individual lots for wliich Building Perniits may be issued without further
subdivision.
"Fiscal Year" means the period starting on Jul}� 1 and ending the following Juue 30.
"Fiscal AgenN' means the fiscal agenL trustee, or paying agent under the Fiscal Agent
Agreemeut.
Ordinance ?�'o. 337�
Pase No. 7
"Fiscal Agent AgreemenY' means the fiscal agent agreement. indenture, resolution or other
instrument pursuant to �ahich Bonds are issued, as modified, amended and/or supplemented from
time to time. and an�� instrument replacine or supplementing the same.
"IA1" means Improvement Area No. 1 of CFD No. 16-I.
"Land Use Class" means anv of the classes listed in Table l. 2. or 3 under Section 3A below.
Note: Land Uses Class is not in reference to a properry's zoning designation.
"Lot(s)" means an indi��idual legal lot created b}� a Final Map for which a building permit for
residential construction has been or could be issued. Not���ithstandine the foreaoine, in the case
of an indi��idual leeal lot created bv such a Final 1�9ap upon �vhich Condominiums aze entitled to
be de��eloped. theVnumber of Lots allocable to such lesal lot for purposes of calculatine the
Backup Special Tax applicable to such Final 1�4ap shall equal the number of Condominiums
���hich are permitted to be constructed on such legal lot as shoNm on such Final D9ap.
"�7aster De��eloper" means SLF IV-Millenia, LLC or its successors or assienees ���ith as
defined in the De��elopment Aereement.
"Maximum Special Taa" means for each Assessors Parcel, the ma�imum Special Tax,
determined in accordance with Sections 3.0 and 3.D belo���. which mav be le��ied in a eiven
Fiscal Year on such Assessor`s Parcel of Taaable Property.
"Non-Residential Properh" means all Assessors Parcels of De��eloped Property for ���hich a
Building Permit has been issued for [he purpose of constructing one or more non-residential units
or structures.
"Occupied Residential Properh�" means all Assessor Parcels of Residential Propem� for ��-hich
title is held by an end user (homeo��mer).
"Outstanding Bonds" means all Bonds ��hich are deemed to be outstanding under the Fiscal
Agent Agreement.
"Prepayment AmounY' means the amount required to prepa�� the Special Tac Obligation in full
for an Assessors Parcel as described in Section 8.A belom.
"Properh� Owner Association Property" means any Assessors Parcel ���ithin the boundaries
of IA 1 o���ned in fee b�� a propert�� o�rner association. includine an}� master or sub-association.
"Proportionatek" or "Proportionate" means for De��eloped Propem. tha[ the ratio of the
actual Special Tas le���� to the applicable Assiened Special 7ax or Backup Special Ta� is equal
for all Assessors Parcels of De��eloped Propeny. For Unde��eloped Property, "Proportionatelv"
means that the ratio of the actual Special Taz le���� per Acre to the A4azimum Special Ta� per
Ordinance No. 3375
Page No. 8
Acre is equal for all Assessor's Parcels of Undeveloped Property. "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section 3 below.
"Provisional Properh'" means all Assessor's Parcels of Public Property, Property ONmer
Association Property or property that would otherwise be classified as Exempt Property pursuant
to the provisions of Section 5, but cannot be classified as Exempt Property because to do so
would reduce the Acreage of all Taxable Property below the required minimum Acreage as set
forth in Section 5.
"Public Propert��" means any propert}' ��'ithin the boundaries of IAI; which is owned by, or
irrevocably offered for dedication to the federal govemment, the State of California, the County,
the City or any other public agency; provided however that any property owmed by a public
agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act
shall be taaed and classified in accordance with its use.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
Building Permit has been issued far the purpose of constructing one or more Residential Units.
"Residential Unit" means each separate residential dwelling unit that comprises an independent
facility capable of conveyance or rental, separate from adjacent residential dwelling units.
"Special Taz" means any special tax levied within IA1 pursuant to the Act and this Rate and
Method of Apportionment of Special Tax.
"Special Taz Obligation" means the total obligation of an Assessor's Parcel of Taxable
Property to pay the Special Tax for the remaining life of]A 1.
"Special Taz Requirement" means that amount required in any Fiscal Year to: (i) pay regularly
scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding
Bo�ds, including but not limited to, credit enhancement and rebate payments on the Outstanding
Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish
any reserve funds for all Outstanding Bonds; (v) accumulate funds to pay directly for acquisition
or construction of facilities provided that the inclusion of such amount does not cause an increase
in the Special Tax to be levied on Undeveloped Property; and (vi) pay for reasonably anticipated
delinquent Special Taxes based on (a) the average delinquency rate for special t�es levied in the
previous Fiscal Year in all community facilities districts wiihin the portion of the City commonly
known as Otay Ranch for the first Fiscal Year in which Special Taxes are levied and (b) the
delinquency rate for Special Taxes levied in the previous Fiscal Year within ]Al for all
subsequent Fiscal Years in which Special Taxes are levied; less (vii) a credit for funds available
to reduce the Annual Special Tax lev��, as determined by the CFD Administrator pursuant to the
Fiscal Agent Agreement.
"State" means the State of California.
"Taxable Properh�" means all of the Assessor's Parcels withiu the boundaries of CFD; N�hich
are not eae�upt from the levy of the Special Ta� pursuant to law or Section 5 belo���.
Ordinance I�'o. 337�
Paee No. 9
"Undeveloped Properh�" means. for each Fiscal Year. all Taxable Propert�- not classified as
De��eloped Propem� or Pro��isional Property.
"Zone A" means the specific eeo�raphic area designated as such within lAl and as depicted in
Eahibit A attached hereto.
"Zone B" means the specific eeoeraphic area desienated as such ���ithin IA1 and as depicted in
Exhibit A attached hereto.
"Zone C" means the specific eeographic area designated as such w�ithin IA1 and as depicted in
Exhibit A attached hereto.
2. LAi1'D USE CLASSIFICATION
Each Fiscal Year, beginnine N�ith Fiscal Yeaz 2016-17. each Assessor's Parce] ���ithin IA1 shall
be classified as Ta�able Propert.� or E�empt Propeny. In addition, all Tasable Property shall
further be dassified as Developed Propert�-, Unde��eloped Property or Provisional Propem�, and
all such Taxable Propem� shall be subject to the le��� of Special Taxes in accordance ti�ith this
Rate and Method of Apportionment of Special Ta� determined pursuant to Sections 3 and 4
below�. Furthermore, each Assessor's Parcel of De�eloped Propert�� shall be classified according
to its applicable Land Use Ctass based on its Buildine Square Footaee.
For Assessors Parcels of I�'on-Residential Propem� developed w�ith Condominiums (e.g.; office
or industrial condos). the Acreage applicable to each such Condominium for purposes of lev��ins
Special Taces shall be computed from the Acreaee of the leeal lot created by the Final Map upon
which such Condominiums are entitled to be developed; ���ith the Acreaee of such lot allocated to
each Condominium on a pro-rata basis using the building square footaee of such Condominium
relative to the total building square footage of all Condominiums entitled to be developed on
such lot. The determination of building square footaee for each non-residential Condominium
shall be made b�� reference to the applicable Building Permit and to the estent a Buildine Permit
has not been issued for all Condominiums to be located on the applicable leeal lot, the building
square footage attributable to am- such Condominiums shall be determined from the recorded
condominium plan, or applicable site plan, plot plan. or other appropriate records kept b�� the
Cit�� as reasonabh� determined bv the CFD Administrator. In the event the City tal;es o�mership
of a Condominium �rithin IA1 and such propert�� in all other respects meets the definition of
Public Propert�� as set forth in Section 1, such property shall be e�empt from Special Ta�es
pursuant to Section �.
3. SPECIAL TAX RATES
A. Assigned Special Taz for De��eloped Properh�
The Assi�ned Special Ta� applicable to an Assessors Parcel classified as Developed
Propem� commencine Fiscal Year 2016-17 shall be determined pursuant to Table ]. 2: or
3 belo���_ as applicable.
Ordinance No. .i37�
Paee No. 10
Table 1
Assigned Special Tax Rates for
De��eloped Property within Zone A
Land Building
Use Land Use T}�pe Square Assigned Special
Class Footage Tax
1 Residential Property < 1,500 $�,352 per
Residential Unit
2 Residential Property 1,500-2,200 $�,661 per
Residential Unit
3 Residential Property > 2,200 $>>�99 per
Residential Unit
4 Non-Residential Property N/A $6,000 per Acre
Table 2
Assigned Special Tax Rates for
De��eloped Property within Zone B
Land Building
Use Land Use Type Square Assigned Special
Class Footage Tax
1 Residential Property� < 1,500 ��,350 per
Residential Unit
2 Residential Property 1,500-2,200 $1,4�1 per
Residential Unit
3 Residential Property > 2,200 �1,649 per
Residential Unit
4 Non-Residential Propeny N/A $6,000 per Acre
Ordinance No. 337�
Paee I�'o. I 1
Table 3
Assigned Special Taz Rates for
Developed Properh ��ithin Zone C
Land B���d�ob
Use Land Use T��pe Square �ssigned Special
Class Footage Tax
1 Residential Propert�� < 1,500 ���'�0 per
Residential Uni[
2 Residential Propem� L�00— 2,200 ����>> per
Reside�tial Unit
3 Residential Propem > 2,200 ���649 per
Residential Unit
4 Non-Residential Property N/A �6:000 per Acre
On each Juh� 1, commencing July 1. 2017, the Assigned Special Ta� for Developed
Property shall be increased by t���o percent (2.00%) of the amount in effect in the prior
Fiscal Year.
B. Backup Special Tax for Developed Property
V�'hen a Final Map or a condominium plan is recorded �ti�ithin Zone A, Zone B, or Zone C
the Backup Special Ta� for Assessor's Pazcels of De��eloped Propeny classified as
Residential Property shall be determined as follows:
For each Assessor's Parcel of Residential Property or for each Assessors Parcel of
Unde��eloped Propert�- to be classified as Residential Property upon its development
���ithin the Final Map area, [he Backup Special Ta� for Fiscal Yeaz 2016-17 shall be the
rate per Lot calculated according to the follo���ine formula:
Zone A
�27.502 � A
B = ------------------------
L
Zone B
�29A�7 z A
B = ------------------------
L
Zone C
�6.316 s A
B = -----------------------
L
Ordinance No. 3375
Page No. 12
The terms have the following meanings:
B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property in such Final
Map. The ]and area applicable to a Condominium shall be computed from
the Acreage of the Lot on which the Condominium is located, with the
Acrea�e for such Lot allocated equally among all of the Condominiums
located or to be located on such Lot.
L = For a Final Map, the number of Lots which are classified or to be
classified as Residential Property.
For each Assessor's Parcel of Developed Property classiiied as Non-Residential Property
or for each Assessor's Parcel of Undeveloped Property to be classified as Non-
Residential Property within the Final Map area, the Backup Special Tax for Fiscal Year
2016-17 shall be determined by multiplying $27,502 for Zone A, $29,057 for Zone B and
$6,316 for Zone C by the total Acreage of any such Assessor's Parcel.
Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non-
Residential Property or Undeveloped Property for which the Backup Special Tax has
been determined are subsequently changed or modified by recordation of a new or
amended Final Map, then the Backup Special Tax applicable to such Assessors Parcels
shall be recalculated to equal the total amount of Backup Special Tax that would have
been generated if such chan�e did not take place.
On each July 1, commencing July 1, 2017, the Backup Special Tax applicable to each
Assessor's Parce] of Taxable Property shall be increased by two percent (2.00%) of the
amou�t in effect in the prior Fiscal Year.
C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessors Parcel of Developed
Property shall be the greater of the applicable Assigned Special Tax or Backup Special
Tax.
D. Maximum Special Tax for Provisional Property and Undeveloped Property
The Masimum Special Tax for Provisional Property and Undeveloped Propert}�
commencina in Fiscal Year 2016-17 shall be $27,502 per Acre for Zone A, $29,057 per
Acre for Zone B, and $6,316 per Acre for Zone C.
Ordinance No. 337�
Paee No. 13
On each Julv 1. commencine Juh� 1, 2017. the Maximum Special Ta�: for Pro��isional
Propert�� and lindeveloped Property shall be increased b�� t«-o percent (2.00%) of the
amount in effect in the prior Fiscal Year.
E. nlultiple Land Use Classes
In some instances an Assessor's Parcel of Developed Propem� ma�� contain more than
one Land Use Class. The ?�4a�imum Special Tax that ma} be levied on such an
Assessors Pazcel shall onh be levied on the Residential Property Land Use Class located
on such Assessor's Parcel.
F. Administrative Special Taa Reduction
Prior to the issuance of Bonds; the Assigned Special Tas, Backup Special Ta�; and
Ma�imum Special Tax (collectively the "Special Ta� Rates") on Tasable Propem� ma}�
be reduced in accordance nith, and subject to the conditions set forth in this paragraph.
Upon the Citv's receipt of a ��ritten request from A9aster De��eloper and the CFD
Administrator, the Special Tas Rates on 7�a�able Propert}� mav be reduced to a level
���hich �aill provide not less than the sum of estimated Adminisvati��e E�pense
Requirement and one hundred ten percent (110%) of the estimated debt sen�ice ���ith
respect to the amount of Bonds requested to be issued in such ���ritten request If it is
reasonabl�� determined bv the CFD Administrator that the total effecti��e ta� rate on
Residential Property, as determined in accordance with [he De��elopment Aereement,
exceeds the maximum level allo�ved in the Development Aereement, the Special Ta�
Rates ma�� be reduced to the amount necessan� to satisf�� the maximum allo�aable
effective ta� rate requirement on Residential Properh� ���ith the ��•ritten consent of Master
De��eloper; ��hich consent shall not be unreasonabl�� ���ithheld; and the CFD
Administrator. It shall not be required that reductions amona each "Building Squaze
Footage° range of Residential Property be proportional. Additionalh�, the "CFD Public
Facilities Costs" amount in Section 8 shall be reduced commensurate ��•ith am� reductions
to the Special Ta� Rates pursuant to this paragraph. as reasonabh� determined by the CFD
Administrator. A certificate in substantialh� the form attached hereto as Eshibit "B" shall
be used for purposes of evidencing the required ti�ritten consent and effectuating the
reduction to the Special Ta� Rates. The reductions permitted pursuant to this paragraph
shall be reflected in an amended I�otice of Special Ta� Lien ���hich the Cih� shall cause to
be recorded.
�. n1ETHOD OF APPORTIONA7ENT
For each Fiscal Year. commencin� Fiscal Year 2016-17. the CFD Administrator shall le��� the
Special Tax on all Taxable Propert�� in accordance with [he follo���in� steps:
Sten 1: The Special Tax shall be le�ied Proportionatel�� on each .Assessor's Parcel of
Developed Propert�� at up to 100% of the applicable Assiened Special Ta� to satisf�� the
Special Ta� Requiremenr.
Ordinance No. 337�
Page No. 14
Step Z: If additional monies aze needed to satisfy the Special Tax Requirement afrer Step
1 has been completed, the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Undeveloped Property up to ]00% of the Maximum Special Tax for
Undeveloped Property;
Step 3: If additional monies are needed to satisfy the Special Tax Requirement afrer the
first two steps have been completed, then the Special Tax amount determined in Step 1
shall be increased Proportionately on each Assessor's Parcel of Developed Property up to
100% of the Maaimum Special Tax for Developed Property.
Step �: If additional monies are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax shall be levied Proportionately
on each Assessor's Parcel of Provisional Property up to 100% of the Maximum Special
Tax for Pro��isional Propert};
Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal
Year against any Assessor's Parcel of Residential Properly for which an occupancy permit for
private residential use has been issued be increased as a result of a delinquency or default in the
payment of the Special Tax applicable to any other Assessor's Parcel within IA1 by more than
ten percent (]0%) above what would have been levied in the absence of such delinquencies or
defaults.
5. EXEMPTiONS
The CFD Administrator shall classify as Exempt Property (i) Assessor's Parcels of Public
Property, (ii) Assessor's Parcels of Property Owner Association Property, (iii) Assessors Parcels
which are used as places of worship and are eaempt from ad valorem property taxes because they
are owned by a religious organization, and (iv) Assessor's Parcels with public or utility
easements making impractical their utilization for other than the purposes set forth in the
easement, provided that no such classification would reduce the sum of all Taxable Property in
IA1 to less than 9.53 Acres for Zone A, 12.67 Acres for Zone B; or 17.09 Acres for Zone C.
Assessor's Parcels N�hich cannot be classified as Exempt Property because such dassification
would reduce the sum of all Taxable Property in IAl to less than 9.53 Acres for Zone A, 12.67
Acres for Zone B, or 17.09 Acres for Zone C, shall be classified as Provisional Property and will
continue to be subject to the IAl Special Taxes accordingly. Tax exempt status for the purpose
of this paragraph will be assigned by the CFD Administrator in the chronological order in which
property becomes eligible for classification as Exempt Property.
If the use of an Assessor's Parcel of Exempt Property changes so that such Assessors Parcel is
no longer classified as one of the uses set forth in the first paragraph of Section 5 above that
���ould make such Assessors Parcel eligible to be classified as Exempt Property, such Assessor's
Parcel shall cease to be classified as Gxe�npt Property and sl�all be deemed to be Taxable
Property.
Ordinance No. 337i
Pa�e No. 15
6. APPEALS
Anv landoHmer who pa�s the Special Ta� and claims the amount of the Special Ta� le��ied on his
or her Assessors Parcel is in error shall first consult �aith the CFD Administrator reeardine such
error not later than thim�-si� (36) months afrer first ha��ing paid the first installment of the
Special Ta� that is disputed. If follo�;�ins such consultation the CFD Administrator determines
that an error has occurred. then the CFD Administrator shall tal:e anv of the follo���ine actions, in
order of priorit��. in order to correct the error:
(i) Amend the Special Ta� le��� on the lando�iner's Assessors Parcel(s) for the
current Fiscal Year prior to the payment date.
(ii) Require the CFD to reimburse the landowmer for the amount of the o��erpa��ment
to the extent of a��ailable CFD funds. or
(iii) Grant a credit asainst, eliminate or reduce the furure Special Ta3es on the
lando��ners Assessor's Parcel(s) in the amoun[ of the overpa��ment.
If fo1loH�ine such consultation and action bv the CFD Administrator the lando«ner believes such
error still eaists, such person may file a �vritten notice of appeal ��ith the Citv Council. Upon the
receipt of such notice; the City Council or desienee ma�� establish such procedures as deemed
necessarv to undertal:e the revie��� of an�� such appeal. If the Citv Council or designee
determines an error still esists. the CFD Administrator shall tal:e an�� of the actions described as
(i), (ii) and (iii) above. in order of priorit��, in order to correct the error.
The Citv Council or desienee thereof shall interpret this Rate and n4ethod of Apportionment of
Special Tax for purposes of clarif}�ins any ambiguities and make determinations relati��e to the
administration of the Special Ta� and any lando��mer appeals. The decision of the City Council
or designee shall be final and binding as to all persons.
7. COLLECTION OF SPECIAL T�ES
Collection of the Annual Special Tax shall be made by the Count}� in the same manner as
ordinar�� ad valorem propert�� ta�es are collected and the Annual Special Ta� shall be subject to
the same penalties and the same lien priority in the case of delinquenc�� as ad ��alorem taxes;
provided; hoti�ever. that the Cih� Council ma}� pro��ide for (i) other means of collecting the
Special Ta�, induding direct billinas thereof to the property o«mers; and (ii)judicial foreclosure
of delinquent Annual Specia] Ta�es.
8. PREPAI'MENT OF SPECIAL TAX OBLIGATION
A. Prepa��ment in Full
Property o���ners ma�� prepa�� and permanentl�� satisfy the Special Ta� Oblieation bv a
cash senlement �ti�ith the Cih� as permitted under Govemment Code Section �33�4. The
follo�rin� definitions appl� ro this Section 8:
Ordinance No. 337�
Page No. 16
"CFD Public Facilities Costs" means $12,550,000 or such lower number as (i) shall be
determined by the CFD Administrator as sufficient to acquire or construct the facilities to
be financed under the Act and financing program for IAI, or (ii) shall be determined by
the City Council concurrently with a covenant that it will not issue any more Bonds
(except refunding bonds).
"Construction Fund" means the fund (regardless of its name) established pursuant to
the Fiscal Agent Aereement to hold funds, which are currently available for expenditure
to acquire or construct the facilities or pay fees authorized to be funded by CFD No. 16-I
for IAI.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs
previousl}� paid from the Construction Fund to acquire or construct the facilities, (ii)
monies currently on deposit in the Construction Fund, and (iii) monies currently on
deposit in an escrow or other designated fund tl�at are expected to be available to finance
CFD Public Facilities Costs.
"Outstanding Bonds" means all Previously Issued Bonds, which remain outstanding as
of the first interest and/or principal payment date following the current Fiscal Year
excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax
prepayments.
"Previously Issued Bonds" means all Bonds that have been issued prior to the date of
prepayment.
The Special Tax Obligation applicable to an Assessors Parcel of Developed Property, or
Undeveloped Property for which a Building Permit has been issued may be prepaid and
the obligation to pay the Special Tax for such Assessor's Parcel permanently satisfied as
described herein, provided that a prepaytnent may be made with respect to a particular
Assessor's Parcel 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 eligible to
prepay the Special Tax Obligation shall provide the CFD Administrator with written
notice of intent to prepay, and designate or identify the company or agency that will be
acting as the escrow agent; if any. The CFD Administrator shall provide the owner with a
statement of the Prepayment Amount for such Assessor's Parcel within thirty (30) days
of the request, and may charge a reasonable fee for providing this service. Prepayment
must be made at least 60 days prior to any redemption date for the Bonds to be redeemed
with the proceeds of such prepaid Special Taxes, unless a shorier period is acceptable to
the Fiscal Agent and the City.
The Prepayment Amount (defined below) shall be calculated for each applicable
Assessor's Parcel or group of Assessors Parcels as summarized below (capitalized terms
as defined below):
Ordinance No. 337�
Page?�'o. U
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepa��ment Amount
plus Defeasance Amount
plus Prepa��ment Administrative Fees and E�:penses
less Resen�e Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepa�•ment, the Prepa��ment Amount (defined in Step 14
below) shall be calculated as follows:
Step No.:
1. Confirm that no Special Tax delinquencies appl}�to such Assessors Parcel.
2. For Assessor's Pazcels of De��eloped Propert}�, determine the Ma�imum
Special Tax. For Assessor`s Parcels of Undeveloped Propem� for �ihich a
Building Permit has been issued. compute the Maeimum Special Tax for that
Assessors Parcel as thoueh it was already desienated as Developed Propert}�,
based upon the Buildins Permit ��hich has already been issued for that
Assessors Pazcel. �
3. Divide the Maximum Special Ta� computed pursuant ro paragraph 2 b�� the
total espected A9a�imum Special Ta� revenue for IAl assumine all Buildine
Permits ha��e been issued (build-out) ���ithin IA1, escludine any Assessor's
Parcels for ���hich the Special Ta�; Obligation has been previouslv prepaid.
4. D4ultipl�� the quotient computed pursuant to paragraph 3 by the Outstandins
Bonds and round that number up to the nearest 5�,000 increment to compute
the amount of Outstanding Bonds to be retired and prepaid for all applicable
Assessors Parcels (the "Bond Redemption Amount").
5. n4ultiply the Bond Redemption rlmount computed pursuant to paraeraph 4 by
the applicable redemption premium (eapressed as a percentage), if anv, on the
Outstanding Bonds to be redeemed at the first available call date (the
"Redemption Premium").
6. Compute the Future Facilities Costs.
7. A4ultipl�� the quotient computed pursuant to paragraph 3 b�� the amount
determined pursuant to pazaeraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Prepa�ment Amount ').
Ordinance No. 3375
Paee No. ]8
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or principal payment date fo1loN�ine the
current Fiscal Year until the expected redemption date for the Outstanding
Bonds which, depending on the Fisca] Agent Agreement, may be as early as
the next interest payment date.
9. Compute the amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Prepayment Amount less the Future Facilities
Prepayment Amount and the Prepayment Administrative Fees from the date of
prepayment until the redemption date for the Outstanding Bonds to be
redeemed with the prepayment.
10. Subtract the amount computed in paragraph 9 from the amount computed in
paragraph 8 (the "Defeasance Amount").
11. Calculate the administrative fees and expenses of CFD No. 16-I for IAl,
including the costs of computation of the prepayment, the costs to invest the
prepayment proceeds, the costs of redeeming the Outstanding Bonds to be
redeemed ���ith the prepayment, and the costs of recording any notices to
evidence the prepayment and the redemption (the "Prepayment Administrative
Fees").
12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Piscal Agent Agreement) on the
prepayment calculation date; a reserve fund credit shall be calculated as a
reduction in the applicable reserve fund for the Outstanding Bonds to be
redeemed pursuant to the prepayment (the "Reserve Fund CrediY'). No
Reserve Fund Credit shall be granted if, after the Prepayment Amount is
calculated, reserve funds are below 100% of the reserve requirement afrer
taking into account such prepayment.
13. 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
multipl}�ing the quotient computed pursuant to paragraph 3 by the eapected
balance in the capitalized interest fund after such first interest and/or principal
payment (the `Capitalized Interest Credit").
14. The amount to prepay the Special Tax Obligation is equal to the sum of the
amounts computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts
computed pursuant to para�raphs 12 and 13 (the "Prepayment Amounr').
1�. From the Prepayment Amount, the sum of tl�e amowits computed pursuant to
para�raphs 4, �; and 10, less the amoimts computed pursuant to paragraphs 12
and 13 shall be deposited into the appropriate fund as established under the
Fisca] Aeent Aereement and be used to retire Outstandint Bonds or make
Ordinance No. 337�
Pa�e I�o. 19
Debt Sen�ice payments. The amount computed pursuant to paraeraph 7 shall
be deposited into the Construction Fund. The amount computed pursuant to
paragraph I 1 shall be retained b�� CFD No. 16-1.
The Prepa��ment Amount mav be sufficient to redeem an amount other than a ��.000
increment of Bonds. In such cases, the increment abo��e $�;000 or inteeral multiple
thereof �+�ill be retained in the appropriate fund established under the Fiscal Aeent
Agreement to redeem Bonds to be used ��ith the next prepayment of Bonds.
Tbe CFD Administrator ���ill confirm that all pre�-iousl�� ]evied Special Ta�es ha��e been
paid in full. N'ith respect to anti� Assessor's Parce] for which the Special Tas Obligation is
prepaid in full. once the CFD Administrator has confirmed that all previously levied
Special Ta�es have been paid, the Cin� Council shall cause a suitable notice to be
recorded in compliance N�ith the Act. to indicate the prepa��ment of the Special Tax
Oblieation and the release of the Special Ta� lien on such Assessor's Parcel: and the
obligation of the o��-ner of such Assessor's Parcel to pa�� the Special Tas shall cease.
Not��-ithstanding the foregoing, no Special Ta� prepa��mem shall be allo�i�ed unless the
aggregate amount of Masimum Special Taxes less the Administrative Espense
Requirement that mav be le��ied on Ta.�able Propem, respectively. after the proposed
prepa��ment is at least l.l times the Debt Service on all Outstanding Bonds in each Fiscal
Yeaz.
B. Partial Prepa�ment
The Special Tal on an Assessors Parcel of De��eloped Property or Unde��eloped Property
for w�hich a Buildine Permit has been issued ma�� be partially prepaid. The amount of the
prepayment shall be calculated as in Section 8.A.: except that a partial prepayment shall
be calculated accordine to the follow�ine formula:
PP = (PE-A) s F+A
These terms have the follo�vine meanine:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A
F = the percentage b�� �ihich the oHmer of the Assessors Pazcel(s) is
panially prepa��ine the Special Ta� ObliQation
A = the Prepa}�ment Administrative Fees and Expenses from Section 8.A
The o«�ner of anv Assessors Parcel �aho desires such panial prepayment shall notify the
CFD Administrator of (i) such o���ners intent to partialh prepay the Special Tax
Obligation; (ii) the percentage b�� which the Special Ta� Obli�ation shall be prepaid. and
(iii) the compan} or a�encv that ���ill be acting as the escro��� a�ent. if an��. The CFD
Administrator shall provide the o���ner ��°ith a statement of the amount required for the
partial prepa��ment of the Special Ta� Obli_ation for an Assessor`s Parcel �aithin sixt�
(60) da��s of the request and ma� char��e a reasonable fee for pro�idine this sen�ice.
Ordinance No. 3375
Paee No. 20
With respect to any Assessors Parce] that is partially prepaid, the City shall (i) distribute
� the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD
No. 16-I for IA1 that there has been a partial prepayment of the Special Tax Obligation
and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the
outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be
levied on such Assessor's Parcel.
Notwithstanding the foregoing, no partial prepayment shall be allowed unless the
aggregate amount of Maaimum Special Taxes less the Administrative Eapense
Requirement that may be levied on Taxable Property, respectively, afrer the proposed
partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each
Fiscal Year.
9. TERM OF SPECIAL TAX
The Special Tax shall be le��ied as long as necessary to meet the Special Tax Requirement for a
period not to eaceed forty (40) Piseal Years commencing with Fiscal Year 2016-17.
Exhibit A
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Pa�e No. 22
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Ordinance I�'o. 337>
Paee No. 23
EXHIBIT B
CIT1' OF CHULA VISTA AND CFD NO. 16-1 CERTIFICATE
I. Pursuant to Section 3F of the Rate and Method of Apportionment of Special Ta� (the
"RMA"). the Ciry of Chula Vista (the "City") and Communih� Facilities District No. 16-I
of the Cit�� of Chula Vista ("CFD I�'o. 16-I") hereby asree to a reduction in the Special
Ta� for Developed Propem�. Unde��eloped Propem-, and/or Provisional Propem�:
(a) The information in the RMA relatine to the Special Tax for De��eloped Propem�,
Unde��eloped Propert��, and Provisional Property shall be modified as follo���s:
[inser� Table l. ?, ancUor 3 shoiring rerised.9ssigned Special Tax rates.for
Dei�eloped Property, insert revised Backup Speciu! Tar rates for Developed Properry
by Zone. and inser! change !o Alaximunr Special Tux rates for Undeveloped Property
a�rd Provisionul Property by ZoneJ
(b) The CFD Public Facilities Costs in Section 8 shall be chaneed to $
2. Special Ta� rates for Taxable Propem� ma�� onh� be modified prior to the issuance of
Bonds.
3. Upon e�ecution of the Certificate by the Citv and CFD No. 16-I the Ciri� shali cause an
amended Notice of Special Ta� Lien for IA1 to be recorded reflectine the modifications
set forth herein.
Bv e�ecution hereof, the undersigned ackno���ledees, on behalf of the City of Chula Vista and
CFD No. 16-I; receipt of this Certificate and modification of the RMA as set forth in this
Cenificate.
CIT1' OF CHULA VISTA
B}�: Date:
CFD Administrator
C01�4MiTiVITY FACILITIES DISTRICT I�'O. 16-I
OF THE CITY OF CHULA VISTA
B��: Date:
Ordinance No. 337�
Page No. 24
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT N0. 16-I (MILLENIA)
IMPROVEMENT AREA NO. 2
A Special Tax shall be levied on all Taxable Property within the boundaries of Improvement
Area No. 1 of Community Facilities District No. 16-] (Millenia) of the City of Chula Vista
("IA2") and collected each Fiscal Year commencing in Fiscal Year 2016-17, in an amount
determined by the CFD Administrator through the application of the procedures described
below. All of the real property within IA2, unless exempted by law or by the provisions hereof,
shall be taxed for the purposes, to the extent, and in the manner herein provided.
1. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area of an Assessors 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. An Acre means 43,560 square feet of land. If the preceding maps for a
land area are not available, the Acreage of such land area shall be determined by the City
Engineer.
"AcY' means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5
of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expense Requirement" means an annual amount equal to $75,000, or such
lesser amount as may be designated by written instruction from an authorized representative of
the City to the Fiscal Agent to be allocated as the first priority of Special Taxes received each
Fiscal Year for the payment of Administrative Expenses.
"Administrative Expenses" means the following actual or reasonably estimated costs related to
the administration of IA2 including, but not limited to: the costs of preparing and compu[ing the
Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the
Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special
Taxes to the Fiscal Agent; the costs of the Fisca] Agent (including its legal counsel) in the
discharge of the duties required of it under the Fisca] Agent Agreement; the costs to the City;
CFD No. 16-I, or any designee thereof complying with arbitrage rebate requirements, including
without limitation rebate liability costs and periodic rebate calculations; the costs to the City,
CFD No. 16-I, or any designee thereof complying with disdosure or reporiing requirements of
the City or CFD No. 16-I, associated with applicable federal and State laws, the costs associated
with preparing Special Tax disclosure statements and responding to public inquiries regarding
the Special Taaes; the costs to the City, CFD No. 16-1, or any designee thereof related to an
appeal of tl�e Special Taa; and the City's aunual adivi��istration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD
1�'0. 16-I for anv other administrative pwposes of CFD No. 16-I, induding attomey's fees and
other costs related to eommencing and pursuing any foreclosw�e of delinquent Special Tases.
Ordinance I�'o. 337�
Pase No. 2�
"Annual Special Taa" means the Special Tax acmall}� le��ied i❑ any Fiscal Year on an��
Assessor's Parcel.
"Assessor" means the Assessor of the Count�� of San Dieeo.
"Assessor's ParceP' means a lot or parcel shoNr on an Assessor's Pazcel A4ap «�ith an assiened
Assessor's Parcel I�'umber. �
"Assessor's Parcel A4ap" means an official map of the Assessor designating pazcels b}�
Assessors Parcel Number.
"Assessor's Parcel Number" means the number assianed to an Assessor's Parcel b�� [he Counn�
for purposes of identification. V
"Assigned Special Ta�" means the Special Tax of that name described in Section 3.A belo��=.
`Backup Special Taa" means the Special Tax of that name described in Section 3.B below.
`Bonds" means anv bonds or other debt of CFD ?�'o. 16-I issued or incurred for IA2. �i�hether in
one or more series, secured by the levy of Special Ta�es.
"Building Permit" means a building permit for construction of a Residential Unit or non-
residential structure ���ithin IA2 issued bv the Citv.
"Building Square Footage" means all of the square footage of li��ing area N�ithin the perimeter
of a residential structure, not induding am� carport, walkwati�, garage_ overhang, or similar area.
The determination of Building Square Footage shall be made by the CFD Administrator bv
reference to the Building Permit(s) issued For such Assessors Parcel and/or by reference to
appropriate records kept bv the Cit��. Building Square Footage for a Residential Unit ��ill be
based on the Buildins Permit(s) issued for such Residential Unit prior to it beins classified as
Occupied Residential Propert��, and shall not chanee as a result of additions or modifications
made to such Residential Unit afrer such classification as Occupied Residential Property.
"Calendar 1'ear" means the period commencing Januar}� 1 of am� ��ear and endine the follo��ina
December 31. �
"CFD Administrator" means an authorized representati��e of the Ciri�, or designee thereof
responsible for determinins the Special Taa Requirement, for preparins the Annual Special Ta�
roll and/or calculating the Backup Special Ta�.
"CFD No. 16-I" means the Communitv Facilities District No. 16-I (Millenia) of the Cit�� of
Chula \'ista.
"Cit��" means the Cit� of Chula �'ista. Califomia.
Ordinance No. 337�
Page No. 26
"Cit�� Council" means the City Council of the Ciry acting as the legislative body of CFD No.
16-I under the Act.
"Condominium" means a unit; whether attached or detached, meeting the statutory definition of
a condominium contained in the California Ci��il Code Section 4285.
"County" means the County of San Diego, California.
"Debt Service" means for each Fiscal Year, the total amount of principal and interest payable on
any Outstanding Bonds during the Calendar Year commencing on January 1 oF such Fiscal Year.
"Developed Propert��" means for each Fiscal Year, all Taxable Property, exclusi��e of
Provisional Property; for which a Building Permit was issued prior to March 1 of the previous
Fiscal Year. An Assessor s Parcel classified as Developed Property but for which the Building
Permit that caused such Assessor's Parcel to be classified as Developed Property has been
cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be
redassified as Unde��eloped Propert}�, provided that the levy of the Annual Special Ta�c after
such reclassification shall not be less than l.l times the annual Debt Service less Administrative
Expenses on all Outstanding Bonds. If Bonds have not been issued, an Assessor's Parcel
classified as Developed Property for which such a Building Permit has been cancelled and/or
voided shall be reclassified as Undeveloped Property.
"Development AgreemenY' means that certain Development Agreement by and between the
City of Chula Vista and McMillin Otay Ranch LLC adopted October 6, 2009 and recorded with
the County of San Dieoo's Recorders office on October 27, 2009 as Document Number 2009-
0595116; as may be amended and/or supplemented from time to time.
"Exempt Property" means for each Fiscal Year, all Assessor's Parcels designated as being
exempt from Special Taxes pursuant to Section 5 below.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code
Section 66410 et seq.) or recordation of a condominium plan pursuant to Califomia Civil
Code 4285 that creates individual lots for «�hich Building Permits may be issued without further
subdivision.
"Fiscal Year" means the period starting on July 1 and ending the following .Iune 30.
"Fiscal AgenY' means the Gscal agent, trustee, or paying agent under the Fiscal Agent
Agreement.
"Fiscal Agent AgreemenY' means the fiscal agent agreement, indenture, resolution or o[her
instrument pursuant to N�hich Bonds are issued, as modified, amended and/or supplemented from
time to time, and an}� instrument replacing or supplementing the same.
"IA2" means Impro��ement Area No. 2 of CPD No. 16-I.
Ordinance No. 337�
Pase No. 27
"Land Use Class" means anv of the classes listed in Table 1 or 2 under Section 3A beloH�.
?�'o�e: Land Uses Class is nol�in reference to a propern>'s=m7i�ig designaiion.
"Lot(s)" means an indi�idual le�al lot created bv a Final 1�4ap for H�hich a buiiding permit for
residential construction has been or could be issued. Notw�ithstandine the foresoine. in the case
of an indi��idual legal lot created b�� such a Final Map upon «�hich Condominiums are entided to
be developed, the number of Lots allocable to such legal lot for purposes of calculating the
Backup Special Ta� applicable to such Final Map shall equal the number of Condominiums
��hich are permitted to be constructed on such legal lot as sho��n on such Final Map.
"Dlaster Developer" means SLF IV-n4illenia, LLC or its successors or assignees as defined in
the De��elopment Aereement.
"Maximum Special Tax" means for each Assessor's Pazcel, the maximum Special Tax,
determined in accordance �vith Sections 3.0 and 3.D beloH�. �vhich mav be le��ied in a si��en
Fiscal Yeaz on such Assessor's Pazcel of Taxable Propert��.
"Non-Residential Properh�° means all Assessor's Parcels of Developed Propert�� for ���hich a
Building Permit has been issued for the purpose of constructine one or more non-residential units
or structures.
"Occupied Residential Properh•" means all Assessor Pazcels of Residential Propem for �ti�hich
tide is held b�� an end user(homeo�mer).
"Outstanding Bonds" means all Bonds ��hich are deemed to be outstanding under the Fiscal
Agent Agreement.
"Prepayment AmounN' means the amount required to prepay the Special Tae ObliQation in full
for an Assessors Parcel as described in Section 8.A belo«�.
"Properh• O���ner Association Propert�" means any Assessor's Pazcel ���ithin the boundaries
of IA2 oNmed in fee by a propert�- o�+mer association, includine any master or sub-association.
"Proportionately" or "Proportionate" means for Developed Property, that the ratio of the
actual Special Tax le��� to the applicable Assigned Specia] Tat or Backup Special Ta� is equal
for all Assessor's Pazcels of Developed Propert�-. For Undeveloped Property, "Proportionateld'
means that the ratio of the actual Special Tax le��� per Acre to the Ma�:imum Special Tax per
Acre is equal for all Assessor's Pazcels of Undeveloped PropeRy. "Proportionateh�" ma��
similarlv be applied to other categories of Taaable Property as listed in Section 3 beloH�.
"Provisional Properh•" means all Assessor's Parcels of Public Propert��, Property O���ner
Association Propert�� or propert�� that ���ould othen+ise be classified as Esempt Propert�� pursuant
to the provisions of Section �. but cannot be classified as E�empt Propert�� because to do so
���ould reduce the Acreaee of all Taxable Property belo��� the required minimum Acrea�e as set
forth in Section �.
�
Ordinance No. 337�
Page No. 28
"Public Property" means any property within the boundaries of IA2, which is owmed by, or
irrevocably offered for dedication to the federal govemment, the State of California, the County,
the City or any other public agency; provided however that any property owned by a public
a�ency and leased to a private entity and subject to taxation under Section 533401 of the Act
shall be taxed and classified in accordance with its use.
"Residential Property" means all Assessor's Parcels oP Developed Property for which a
Building Permit has been issued for the purpose of constructing one or more Residential Units.
"Residential Unit" means eacl� separate residential dwelling unit that comprises an independent
facility capable of conveyance or rental, separate from adjacent residential dwellin� units.
"Special Tax" means any special taa levied witl�in IA2 pursuant to the Act and this Rate and
Method of Apportionment of Special Tax.
"Special Tas Obligatiod' means the total obligation of an Assessor's Parcel of Taxable
Property to pay the Special Tax for the remaining life of 1A2.
"Special Tax Requirement" means that amount required in any Fiscal Year to: (i) pay regularly
scheduled Debt Service on all Outstanding Bonds, (ii) pay periodic costs on the Outstanding
Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding
Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish
any reserve funds for all Outstanding Bonds; (v) accumulate funds to pay directly for acquisition
or construction of racilities provided that the inclusion of sucl� amount does not cause an increase
in the Special Tax to be levied on Undeveloped Property; and (vi) pay for reasonably anticipated
delinquent Special Taxes based on (a) the average delinquency rate for special taxes levied in the
previous Fiscal Year in all community facilities districts within the portion of the City commonly
known as Otay Ranch for the first Fiscal Year in which Special Taaes are levied and (b) the
delinquency rate for Special Taxes levied in the previous Fiscal Year within IA2 for all
subsequent Fiscal Years in ���hich Special Taxes are levied; less (vii) a credit for funds available
to reduce the Annual Special Tax levy, as determined by the CrD Administrator pursuant to the
Fiscal Agent Agreement.
"State" means the State of California.
"Taxable Pro�erty" means all of the Assessor's Parcels within the boundaries of CFD, which
are not exempt from the levy of the Special Tax pursuant to law or Section 5 below.
"Undeveloped Properh�" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property or Provisional Property.
"Zone A° means the specific geographic area desig»ated as such within IA2 and as depicted in
Exhibit A attached hereto.
Ordinance No. 337�
Pa¢e No. 29
"Zone B" means the specific eeoQraphic azea desianated as such within IA2 and as depicted in
Exhibit A attached hereto.
2. L�"D USE CLASSIFICATION
Each Fiscal Yeaz. beeinnine ��ith Fiscal Yeaz 2016-17. each Assessors Pazcel �tiithin IA2 shall
be classified as Taxable Propertti� or Exempt Propert��. In addition. all Taxable Property shall
further be classified as De��eloped Property, Unde��eloped Propert�� or Provisional Propem�. and
all such Taxable Propem� shall be subject to the levv of Special Ta�es in accordance �vith this
Rate and Method of Apportionment of Special Ta� determined pursuant to Sections 3 and 4
belo��. Furthermore. each Assessor's Pazcel of Developed Propem shall be classified according
to its applicable Land Use Class based on its Building Squaze Footage.
For Assessors Parcels of Non-Residential Propert�� developed Hith Condominiums (e.e.. office
or industrial condos). the Acreage applicable to each such Condominium for purposes of levvine
Special Taxes shall be computed from the Acreage of the leoal lot created b�� the Final Map upon
��-hich such Condominiums aze entitled to be de��eloped, with the AcreaQe of such lot allocated to
each Condominium on a pro-rata basis usine the buildins square footaee of such Condominium
relati��e to the total building square footage of all Condominiums entitled to be developed on
such lot The determination of buildine square footage for each non-residential Condominium
shall be made bv reference to the applicable Building Permit, and to the extent a Building Permit
has not been issued for all Condominiums to be located on the applicable leeal lot, the buildins
square footage attributable to any such Condominiums shall be determined from the recorded
condominium plan. or applicable site plan, plot plan. or other appropriate records kept b�� the
City as reasonably determined b�� the CFD Administrator. In the event the Cih� takes otimership
of a Condominium «�ithin IA2 and such propeny in all other respects meets the definition of
Public Property as set forth in Section 1. such property shall be exempt from Special Ta�es
pursuant to Section �.
3. SPECIAL TAX RATES "
A. Assigned Special Taz for Developed Propertp
The Assigned Special Ta� applicable to an Assessor`s Parcel dassified as De��eloped
Property commencine Fiscal Year 2016-17 shall be determined pursuant to Table 1 or 2
beloti�, as applicable.
Ordinance No. 337�
Page No. 30
Table 1
Assigned Special Tax Rates for
Developed Property within Zone A
Land Building
Use Land Use Type Square Assigned Special
Class Footage Tax
1 Residential Propert}' < 1,450 $��360 per
— Residential Unit
2 Residential Property >1,450 $�,628 per
Residential Unit
3 Non-Residential Property N/A $6,000 per Acre
Table 2
Assigned Special Tax Rates for
Developed Property within Zone B
Land Building
Use Land Use Type Square Assigned Special
Class Footage Tax
1 Residential Property < 1,450 $1,360 per
— Residential Unit
2 Residential Property >1,450 $1,628 per
Residential Unit
3 Non-Residential Property N/A $6,000 per Acre
On each July 1, commencing July ], 2017, the Assigned Special Tax for Developed
Property shall be increased by two percent (2.00%) of the amount in effect in the prior
Fiscal Year.
B. Backup Special Tax for Developed Property
When a Final Map or a condominium plan is recorded within Zone A or Zone B the
Backup Special Tax for Assessor's Parcels of Developed Property classified as
Residential Property sl�all be determined as follows:
Ordinance No. 337�
Paee No. 31
For each Assessors Parcel of Residential Propem� or for each Assessors Parcel of
Unde�eloped Propert}� to be dassified as Residential Propem� upon its development
��ithin the Final Map azea. the Backup Special Tax for Fiscal Year 2016-17 shall be the
rate per Lot calculated accordino to the follo«�ine formula:
Zone A
5463�8 z A
B = ------------------------
L
Zone B
�6.316 � A
B = ------------------------
L
The terms ha��e the follo���ine meaninas:
B = Backup Special Ta� per Lot
A = Acreage classified or to be classified as Residential Property in such Final
n4ap. The land area applicable to a Condominium shall be computed from
the Acreaee of the Lot on �vhich the Condominium is located, �vith the
Acreaee for such Lot ailocated equall�� amone all of the Condominiums
located or to be located on such Lot.
L = For a Final A4ap, the number of Lots �ti�hich are classified or to be
classified as Residential Propem�.
For each Assessors Parcel of Developed Propem� classified as Non-Residential Property
or for each Assessor's Pazcel of Unde��eloped Propertv to be classified as Non-
Residential Propem� ���ithin the Final 1�4ap area. the Backup Special Ta� for Fiscal Year
2016-17 shall be determined by multiplying $46,3�8 for Zone A and $6,316 for Zone B
bv the total Acreaee oFam� such Assessors Parcel.
Not�i�ithstanding the fore�oing, if Assessors Parcels of Residential Property, Non-
Residential Propem� or Unde��eloped Property for ���hich the Backup Special Ta� has
been determined are subsequently changed or modified b�� recordation of a new or
amended Final Map; then the Backup Special Taz applicable to such Assessors Parcels
shall be recalculated to equal the total amount of Backup Special Ta� that �vould ha��e
been eenerated if such change did not take place.
On each Jul�� 1, commencino Jul}� l. 2017. the Backup Special Taz applicable to each
Assessor's Parcel of Takable Propert�- shall be increased by tH�o percent (2.00%) of the
amount in effect in the prior Fiscal Year.
C. Maximum Special Tac for De��eloped Properh�
Each Fiscal 1'ear. the A4asimum Special Tas for an Assessors Parcel of De��eloped
Propert�� shall be the greater of the applicable Assi�ned Special Tas or Backup Special
Tax.
Ordinance No. 3375
Paee No. 32
D. Maximum Special Tax for Provisional Property and Unde��eloped Property
The Maaimum Special Tax for Provisiona] Property and Undeveloped Property
commencing in Fiscal Year 2016-17 shall be $46,358 per Acre for Zone A and $6,316
per Acre for Zone B.
On each July 1, commencing July 1, 2017, tl�e M�in�um Special Tax for Provisional
Property and Undeveloped Property shall be increased by two percent (2.00%) of the
amount in effect in the prior Fiscal Year.
E. Multiple Land Use Classes
In some instances an Assessors Parcel of Developed Property may contain more than
one Land Use Class. The Maximum Special Tax that may be levied on such an
Assessor's Parcel shall only be levied on the Residential Property Land Use Class located
on such Assessor's Parcel.
F. Administrative Special Tas Reduction
Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and
Masimum Special Taa (collectively the "Special Tax Rates") on Taxable Property may
be reduced in accordance with, and subject to the conditions set forth in this paragraph.
Upon the City's receipt of a written request from Master Developer and the CFD
Administrator, the Special Tax Rates on Taxable Property may be reduced to a level
which will provide not less than the sum of estimated Administrative Expense
Requirement and one hundred ten percent (110%) of the estimated debt service with
respect to the amount of Bonds requested to be issued in such written request. If it is
reasonably determined by the CFD Administrator that ihe total effective tax rate on
Residential Property, as determined in accordance with the Development Agreement,
exceeds the masimum level allowed in the Development Agreement, the Special Tax
Rates may be reduced to the amount necessary to satisfy the maximum allowable
effective tax rate requirement on Residential Property with the written consent of Master
Developer, which consent shall not be unreasonably withheld, and the CFD
Administrator. It shall not be required that reductions among each "Building Square
Footage' range of Residential Property be proportional. Additionally, tt�e "CFD Public
Facilities Costs' amount in Section 8 shall be reduced commensurate with any reductions
ro the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD
Administrator. A certificate in substantially the form attached hereto as Exhibit "B" shall
be used for purposes of evidencing the required written consent and effectuating the
reduction to the Special Tax Rates. The reductions perniitted pursuant to this paragraph
shall be reflected in an amended Notice of Specia] T� Lien which the City shall cause to
be recorded.
Ordinance No. 337�
Paee No. 33
4. AIETHOD OF APPORTIONA4ENT
For each Fiscal 1'ear, commencine Fiscal Year 2016-17, the CFD Administrator shall le��� the
Special Tax on all Ta�able Propem� in accordance ���ith the folloNing steps:
Step 1: The Special Taa; shall be levied Proponionateh on each Assessors Pazcel of
De��eloped Property at up to 100% oF the applicable Assigned Special Tax to satisf�� the
Special Ta� Requirement;
Step 2: If additional monies aze needed to satisfy the Special Tax Requirement afrer Step
1 has been completed, the Special Ta� shall be le��ied Proponionatelv on each Assessor's
Pazcel of Unde��eloped Property up to 100% of the A9aximum Special Ta� for
Unde��eloped Propert�;
Ste� 3: If additional monies are needed to satisfi� the Special Ta� Requirement afrer the
first t�vo steps ha��e been completed. then the Special Ta� amount determined in Step 1
shall be increased Proponionatelv on each Assessor's Pazcel of De��eloped Propert�- up to
100% of the Ma�imum Special Tax for De��eloped Property.
Sten 4: If additional monies aze needed to satisfi� the Special Ta� Requirement afrer the
first three steps have been completed, then the Special Tat shall be levied Proportionatel}�
on each Assessor's Parcel of Pro��isional Property up to ]00% of the Maximum Special
Ta� for Pro��isional Property;
Notu�ithstanding the abo��e, under no circumstances will the Special Tat le��ied in an�� Fiscal
Year aeainst any Assessors Parcel of Residential Property for ���hich an occupancy permit for
pri��ate residential use has been issued be increased as a result of a delinquency or default in the
payment of the Special Tax applicable to any other Assessors Parcel within IA2 b�� more than
ten percent (10%) abo��e �ti�hat ��-ould have been le��ied in the absence of such delinquencies or
defaults.
5. EXE�7PTIONS
The CFD Administrator shall classifi� as E�empt Propem� (i) Assessors Pazcels of Public
Propem�, (ii) Assessors Parcels of Property O��mer Association Propem�, (iii) Assessors Parcels
which are used as places of worship and are exempt from ad ��alorem propert�� ta�es because the��
are o�vned by a reli2ious or2anization, and (iv) Assessor's Pazcels «�ith public or utilit��
easements making impractical their utilization for other than the purposes set forth in the
easement, provided that no such classification �i�ould reduce the sum of all Ta�able Propem� in
IA2 to less than 14.89 Acres for Zone A or 7.92 Acres for Zone B. Assessors Parcels ���hich
cannot be classified as E�empt Propem� because such dassification ���ould reduce the sum of all
Taxable Propert�� in [A2 to less than 1�3.89 Acres for Zone A or 7.92 Acres for Zone B shall be
classified as Provisional Property and ���ill continue to be subject to the IA2 Special Taxes
accordinel}�. Ta� exempt status for the purpose of this paragraph ���ill be assianed by the CFD
Administrator in the chronolo�ical order in ���hich propert�� becomes eligible for classification as
Exempt Propert��.
�
Ordinance No. 3375
Page No. 34
If the use of an Assessor's Parcel of Exempt Property changes so that such Assessors Parcel is
no longer classified as one of the uses set forth in the first paragrap6 of Section 5 above that
would make such Assessors Parcel eligible to be classified as Exempt Property, such Assessors
Pazcel shall cease to be classified as Eaempt Property and shall be deemed to be Taxable
Property.
6. APPEALS
Any lando�mer who pays the Special Tax and daims the amount of the Special Taa levied on his
or her Assessors Parcel is in error shall first consult with the CFD Administrator regarding such
error not later than thirty-six (36) months afrer first having paid the first installment of the
Special Tax that is disputed. If follo��ing such consultation the CFD Administrator determines
that an error has occurred, then the CFD Administrator shall take any of the following actions, in
order of priority, in order to correct the error:
(iv) Amend the Special Tax levy on the landowner's Assessor`s Parcel(s) for the
current Fiscal Year prior to the payment date,
(v) Require the CFD to reimburse the ]andowner for the amount of the overpayment
to the extent of available CFD funds, or
(vi) Grant a credit against, eliminate or reduce the future Special Taxes on the
landowner s Assessor's Parcel(s) in the amoui�t of the overpayment.
If following such consultation and action by the CFD Administrator the landowmer believes such
error still exists, such person may file a written notice of appeal with the City Council. Upon the
receipt of such notice, the City Council or designee may establish such procedures as deemed
necessary to undertake the review of any such appeal. If the City Council or designee
determines an error still exists, the CFD Administrator shall take any of the actions described as
(i), (ii) and (iii) above, in order of priority, in order to conect the error.
'Che City Council or designee thereof shall interpret this Rate and Method of Apportionment of
Special Tax for purposes of darifying any ambiguities and make determinations relative to the
administration of the Special Tas and any landowner appeals. The decision of the City Council
or designee shall be final and binding as to all persons.
7. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Taa sliall be made by the County in the same manner as
ordinary ad valorem property taxes are collected and the Annual Special 7'ax shall be subject to
the same penalties and the same lien priority in the case of delinquency as ad valorem taxes;
provided, however, that the Cit�� Council may provide for (i) other means of collecting the
Special Tax. including direct billings thereof to ihe property owners; and (ii)judicial foreclosure
of delinquent Annual Special Taaes.
Ordinance No. 337�
Paee No. 3�
8. PREPAI'A4E?�'T OF SPEC[AL T� OBLIGATION
C. Prepa��ment in Full
Propem o��mers ma�� prepay and permanentiv satisfi� the Special Taa Oblieation bv a
cash settlement «�ith the Citv as permitted under Go��emment Code Section �3344. The
follo��ing definitions apph� to this Section 8:
"CFD Public Facilities Costs" means $12.900,000 or such loti�er number as (i) shall be
determined b�� the CFD Administrator as sufficient to acquire or construct the facilities to
be financed under the Act and financine proeram for IA2, or (ii) shall be determined b��
the Citv Council concurrentiv �cith a covenant that it �vill not issue anv more Bonds
(except refunding bonds).
"Construction Fund" means the fund (regardless of its name) established pursuant to
the Fiscal Agent Agreement to hold funds, �ihich are currentl�� available for expenditure
to acquire or construct the facilities or pa�� fees authorized to be funded by CFD No. 16-I
for IA2.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs
previouslv paid from the Construction Fund to acquire or construct the facilities, (ii)
monies currenth on deposit in the Construction Fund, and (iii) monies currentiv on
deposit in an escro��� or other designated fund that are espected to be available to finance
CFD Public Facilities Costs.
"Outstanding Bonds" means all Pre��ioush Issued Bonds. �vhich remain outstandine as
of the first interest and/or principal pa��ment date follo���ine the current Fiscal Year
excludina Bonds to be redeemed at a later date ���ith proceeds of prior Special Ta�
prepa��ments.
"Pre�°iousl�� Issued Bonds" means all Bonds that ha��e been issued prior to the date of
prepa��ment.
The Special Tax Obligation applicable to an Assessors Parcel of De��eloped Propert��, or
Undeveloped Propert�- for which a Buildins Permit has been issued mav be prepaid and
the oblieation to pa�� the Special Ta� for such Assessor's Parcel permanendy satisfied as
described herein. provided that a prepa��ment ma�� be made �vith respect to a particulaz
Assessors Parcel onl}� if there are no delinquent Special Taxes ���ith respect to such
Assessors Parcel at the time of prepa}�ment. An o���ner of an Assessors Parcel elieible to
prepa�� the Special Ta� Oblisation shall pro��ide the CFD Administrator «�ith «ritten
notice of intent to prepa��. and desi�nate or identify the company or asenc�� that ��•ill be
actine as the escrow a�ent. if am�. The CFD Administrator shall pro��ide [he owner �vith a
statement of the Prepayment Amount for such Assessor`s Parcel ���ithin thirtv (30) da��s
of the request, and ma�� chazse a reasonable fee for pro��idin� this sen�ice. Prepa}�ment
must be made at least 60 da��s prior to an�� redemption date for the Bonds to be redeemed
�vith the proceeds of such prepaid Special Ta�es: unless a shorter period is acceptable to
the Fiscal Aeent and the Cit�'.
Ordinance No. 3375
Page No. 36
The Prepayment Amount (defined below) shall be calculated for each applicable
Assessor's Parcel or group of Assessor's Parcels as summarized below (capitalized terms
as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
plus Defeasance Amount
plus Prepayment Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepa}�ment Amount
As of the proposed date of prepa}�ment, the Prepayment Amount (defined in Step 14
below) shall be calculated as follows:
Step No.:
16. Confirm that no Specia] Tax delinquencies apply to such Assessor's Parcel.
17. For Assessor's Parcels of Developed Property, determine the Ma�imum
Special Tax. For Assessor's Parcels of' Undeveloped Property for which a
Building Permit has been issued, compute the Maximum 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.
18. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the
total expected Maximum Special Tax revenue for IA2 assuming al] Building
Permits have been issued (build-out) within IA2, excluding any Assessors
Parcels for �i-hich the Special Tax Obligation has been previously prepaid.
19. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding
Bonds and round that number up to the nearest $5,000 increment to compute
the amount of Outstanding Bonds to be retired and prepaid for all applicable
Assessor's Parcels (the "Bond Redemption AmounY`).
20. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by
the applicable redemption preinium (expressed as a percentage), if any, on the
Outstanding Bonds to be redeemed at the first available call date (the
"Redemption Premium").
21. Compute the Future Facilities Costs.
Ordinance No. 337�
Page No. 37
22. A9ultiph the quotient computed pursuant to pazagraph 3 b�� the amount
determined pursuant to pazagraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Prepa��ment Amounr').
23. Compute the amount needed to pa� interest on the Bond Redemption Amount
from the first bond interest and/or principal pa�ment date folloN�ine the
current Fiscal 1'eaz until the eapected redemption date for the Outstandine
Bonds ���hich, depending on the Fiscal Agent Agreement, ma�� be as earl}� as
the ne�t interest pa��ment date.
24. Compute the amount the CFD Administrator reasonabh e�pects to derive
from the reinvestment of the Prepa��ment Amount less the Future Facilities
Prepa�ment Amount and the Prepa}�ment Administrative Fees from the date of
prepa�ment until the redemption date for the Outstanding Bonds to be
redeemed ���ith the prepayment.
2�. Subtract the amount computed in paragraph 9 from the amount computed in
paraeraph 8 (the "Defeasance Amount").
26. Calculate the administrative fees and e�penses of CFD No. 16-I for IA2,
including the costs of computation of the prepa}�ment; the costs to im�est the
prepa��ment proceeds the costs of redeeming the Outstandine Bonds to be
redeemed ���ith the prepayment. and the costs of recordine an�� notices to
evidence the prepayment and the redemption (the "Prepa��ment Adminisvati��e
Fees ').
27. If resen�e funds for the Outstandine Bonds. if anv, are at or above 100% of the
reserve requirement (as defined in the Fiscal Agent Agreement) on the
prepa��ment calculation date: a resen�e fund credit shall be calculated as a
reduction in the applicable reserve fund for the Outstanding Bonds to be
redeemed pursuant to the prepayment (the "Resen�e Fund Credir`). No
Resen�e Fund Gedit shall be granted if. afrer the Prepayment Amount is
caiculated; reserve funds aze below� 100% of the reserve requirement afrer
tal:ing into account such prepa��ment.
28. If an} capitalized interest for the Outstandine Bonds �+°ill not ha��e been
expended at the time of the first interest and/or principal payment follo��-ine
the current Fiscal Year, a capitalized interest credit shall be calculated bv
multipl�ing the quotient computed pursuant to paragraph 3 by the espected
balance in the capitalized interes[ fund after such first interest and/or principal
pa��ment (the "Capitalized Interest Credir').
29. The amount to prepay the Special Tax Obligation is equal to the sum of the
amounts computed pursuant to paraeraphs 4. �. 7. 10; and 1 l. less the amounts
computed pursuant to para��raphs 12 and ]3 (the "Prepa��ment Amounr').
Ordinance No. 3375
Page No. 38
30. From the Prepayment Amount, the sum of the amounts computed pursuant to
paragraphs 4; �, and 10, less the amounts computed pursuant to paragraphs 12
and 13 shall be deposited into the appropriate fund as established under the
Fiscal Agent Agreement and be used to retire Outstanding Bonds or make
Debt Service payments. The amount computed pursuant to paragraph 7 shall
be deposited into the Construction Fund. The amount computed pursuant to
paragraph 11 shall be retained by CFD No. 16-I.
The Prepayment Amount may be sufficient to redeem an amount other than a $5;000
increment of Bonds. In such cases, the increment above $5,000 or integral multiple
thereof H�ill be retained in the appropriate fund established under the Fiscal Agent
Agreement to redeem Bonds to be used with the next prepayment of Bonds.
The CFD Administrator will confirm that all previously levied Special Taxes have been
paid in full. With respect to any Assessor's Pazcel for which the Special Taa Obligation is
prepaid in full, once the CFD Administrator has confirmed that all previously levied
Special Taaes have been paid, the Ciry Council shal] cause a suitable notice to be
recorded in compliance with the Act to indicate the prepayment of the Special Tax
Obligation and the release of the Special Tax licn on such Assessor's Parcel, and the
obligation of the owner of such Assessor's Parcel to pay the Special Tax shall cease.
Not��ithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
aggregate amount of Maximum Special Taxes less the Administrative Expense
Requirement that may be levied on Taxable Property, respectively, after the proposed
prepayment is at least l.l times the Debt Service on all Outstanding Bonds in each Fiscal
Year.
D. Partial Prepayment
The Special Tax on an Assessor s Parcel of Developed Property or 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 8.A.; except ihat a partial prepayment shall
be calculated according to the following formula:
PP = (PE-A) x F+A
These terms have the following meaning:
PP =the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A
F= the percentage by ti�hich the owner of the Assessor s Parcel(s) is
partially prepaying the Special Tax Obligation
A =the Prepayment Administrative Fees and Expenses from Section 8.A
The owner of any Assessor's Parcel ti�ho desires such partia] prepa��ment shall notif�� the
CFD Administrator of (i) such o�vners intent to partially prepa�� the Special Tas
Obligation; (ii) the percentage by «�l�ich the Special Tax Obligation shall be prepaid, and
Ordinance No. 337�
Pase No. 39
(iii) the company or aeencv that N°ill be acting as the escro��� agent. if any. The CFD
Administrator shall provide the oNmer �vith a statement of the amount required for the
partial prepayment of the Special Tax Obligation for an Assessors Pazcel ���ithin sizn�
(60) da�-s of the request and ma�� chazge a reasonable fee for pro��iding this service.
\47ith respect to an�� Assessor's Pazcel that is partialh prepaid, the Cit�� shall (i) distribute
the funds remitted to it according to Section 8.A.; and (ii) indicate in the records of CFD
No. 16-I for IA2 that there has been a partial prepa�-ment of the Special Tar Oblioation
and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the
outstanding percentage (1.00 - F) of the Ma�imum Specia] Taa, shall continue to be
]evied on such Assessor`s Parcel.
I�'ot«�ithstandine the foreeoine, no partial prepa�ment shall be allo���ed unless the
aeeregate amount of A4aximum Special Tales less the Administrative Expense
Requirement that may be le��ied on Ta�able Propert��, respecti��e1��. afier the proposed
partial prepayment is at least l.l times the Debt Service on all Outstanding Bonds in each
Fiscal Year.
9. TERi�7 OF SPECIAL TAX
The Special Tak shall be le�ied as lone as necessarv to meet the Special Tax Requirement for a
period not to exceed fort�� (40) Fiscal Years commencing N�ith Fiscal 1'ear 2016-17.
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Paae No. 42
EXHIBIT B
CITY OF CHULA VISTA AND CFD NO. 16-I CERTIFICATE
1. Pursuant to Section 3F of the Rate and Method of Apportionment of Special Tax (the
"RMA"), the City of Chula Vista (the "City") and CommuniTy Facilities District No. 16-I of the
City of Chula Vista ("CFD No. 16-I") hereby agree ro a reduction in the Special Tax for
Developed Property, Undeveloped Property, and/or Provisional Property:
(c) The information in the RMA relating to the Special Tax for Developed Property,
Unde��eloped Property; and Provisional PropeRy shall be modified as follo��s:
[inser•! Tub1e 1 and/or Z shoia�ing revised Assigned Syeciul Tcrx rules,for Developed
P�•operh�, iraserl rei�ised Backup Special Tax rales fo�� Dei�eloped Properry by 7_one,
and irrser! change ro Muzimunl Speciul Tux rutes for Undereloped Properq�und
P�-ovisio�2al Prope�•ry by ZoneJ
(d) The CFD Public Facilities Costs in Section 8 shall be changed to $
4. Special Tax rates for Ta�able Property may only be modified prior to the issuance of
Bonds.
�. Upon execution of the Certificate by the City and CFD No. 16-I the City shall cause an
amended Notice of Special Tax Lien for IA2 to be recorded reflecting the modifications
set forth herein.
By execution hereof; the undersibned acknowledges, on behalf of the City of Chula Vista and
CFD No. 16-I, receipt of this Certificate and modification of the RMA as set forth in this
Certificate.
CITY OF CHULA VISTA
By: Date:
CFD Administrator
COMMLJNITY FACILITIES DISTRICT NO. ]6-I
OF THE C[TY OF CHULA VISTA
By: Date: