HomeMy WebLinkAboutReso 2003-007 RESOLUTION NO. 2003-007
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING ITS INTENTION TO
ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 07-I
(BROOKFIELD SHEA OTAY - VILLAGE ELEVEN) AND TO
AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO
FINANCE THE ACQUISITION OR CONSTRUCTION OF
CERTAIN PUBLIC FACILITIES
WHEREAS, the City Council of the City of Chula Vista, Cali£omia (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. 07-I (Broolcfield Otay Shea,
LLC - Otay Ranch - Village 11) (the "District"); and
WHEREAS, this City Council desires to proceed to adopt its Resolution of Intention to
initiate the proceedings to consider the establishment of such District, to set forth the proposed
boundaries for such District, to indicate the type of public facilities proposed to be financed by
such District, to indicate the proposed 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, the Community Facilities District Law provides that the City Council may
initiate proceedings to establish a community facilities district only if it has first considered and
adopted local goals and policies concerning the use of the Community Facilities District Law;
and
WHEREAS, this City Council has adopted local goals and policies as required pursuant
to the Community Facilities District Law.
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 the Community Facilities District Law.
BOUNDARIES OF DISTRICT
Resolution 2003-007
Page 2
SECTION 3. It is the intention of this City Council to establish the boundaries of the proposed -
District. A description of the proposed boundaries of the territory to be included in the District
including the 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 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 District shall be Community Facilities District No. 07-I
(Bmokfield Otay Shea, LLC - Otay Ranch - Village Eleven).
DESCRIPTION OF FACILITIES
SECTION 5. It is the intention of this City Council to finance the acquisition of certain
facilities authorized to be acquired pursuant to the provisions of the Community Facilities
District Law. A general description of the type of facilities proposed to be authorized to be
acquired is set forth in Exhibit A attached hereto and incorporated herein by this reference (the
"Facilities").
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 as a result of
development within the District.
The cost of acquiring the Facilities includes Incidental Expenses as such term is defined
in Govemmem Code Section 53317(e) and may include, but not be 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 to be issued for the District, 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 the
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 mom than 10 percent. For further particulars as to
the rate and method of apportionment of the proposed special tax (the "Rate and Method of
Apportionment") reference is made to the attached and incorporated Exhibit B, 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.
The Rate and Method of Apportionment also set forth the tax year after which no further special
tax shall be levied or collected against any parcel used for private residential purposes. A parcel
Resolution 2003-007
Page 3
shall be considered "used for private residential purposes" not later than the date on which an
occupancy permit or the equivalent for private residential use is issued for such parcel.
The special taxes herein proposed, to the extent possible, shall be collected in the same
manner as ad valorem property taxes or in such other manner at this City Council shall
determine, including without limitation, direct billing of the affected property owners, 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 of the City of Chula
Vista (the "City"), acting for and on behalf of the District.
The special tax obligation for any parcel may be prepaid and permanently satisfied in
whole or in part pursuant to the provisions therefor contained in the Rate and Method of
Apportionment.
PUBLIC I-IF~RING
SECTION 7. NOTICE IS GIVEN THAT ON FEBRUARY 18, 2003, AT THE HOUR OF 6:00
O'CLOCK 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 DISTRICT,
THE RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX PROPOSED
TO BE LEVIED WITHIN THE DISTRICT, AND ALL OTHER MATTERS AS SET FORTH
IN THIS RESOLUTION OF INTENTION. AT THE ABOVE-MENTIONED TIME AND
PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING
TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD. 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 ON OR BEFORE THE TIME FIXED
FOR THE PUBLIC HEARING. WRi'I'I't~N PROTESTS MAY BE WITHDRAWN IN
WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING.
IF A WRITFEN 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 PORTION OF THE SPECIAL 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 (12) persons, who need not necessarily be the same twelve (12) persons, have
been registered to vote within an the District for each of the ninety (90) days preceding the dose
of the public hearing, the vote shall be by registered voters of the District, with each voter having
Resolution 2003-007
Page 4
one (1) vote. Otherwise, the vote shall be by the landowners of District who were the owners of
record at the close of the subject hearing, with each such landowner or the authorized
representative thereof, having one (1) vote for each acre or portion of an acre of land owned
within the District.
NOTICE
SECTION 9. Notice of the time and place of the public hearing shall be given by the City Clerk
by causing the publication of a Notice of Public Heating in the 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 (7) days prior to the date set for the public
hearing.
The City Clerk shall also cause notice to be given by first-class mail to each registered
voter, if any, and to each landowner as defined in the Community Facilities District Law within
the proposed boundaries of the District. Such notice shall be mailed at least 15 days before the
public hearing and shall contain the same information as is required to be contained in the notice
published pursuant to the preceding paragraph.
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, 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 with Brookfield Shea Otay,
LLC (the "Company") 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.
In addition, it is proposed that the City enter into an agreement with the Company
pursuant to which the Company shall construct and install the Facilities and the District shall
Resolution 2003-007
Page 5
repay the funds expended by the Company for such purpose or value or cost of the work in-kind,
whichever is less.
Prepared by Approved as to form by
J?u~lc '/wLioPr ~i?Dir ect o r ~A~omey
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 7th day of January, 2003, by the following vote:
AYES: Councilmembers: Davis, Rindone, Salas, and Padilla
NAYS: Councilmembers: None
ABSENT: Councilmembers: McCann
ATTEST:
Susan Bigelow, City Clerk°
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2003-007 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 7th day of January, 2003.
Executed this 7th day of January, 2003.
Susan Bigelow, City Clerk
EXHIBIT B
I~4TE AND METHOD OF APPORTIONMENT FOR
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRiCT NO. 07-I
(Brookfield Shea Otay Village Eleven)
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable
Property within the City of Chula Vista Conm'mnity Facilities District No. 07-I(Brookfield Slnea
Otay Village Eleven), and collected each Fiscal Year commencing in Fiscal Year 2003-2004 in
an amount detemm~ed by the City Council through the application of the appropriate Special Tax
for "Developed ProperLy, .... Approved Property", "Undeveloped Properly" and "Provisional
Undeveloped Property" as described below. All of the Taxable Property within CFD-07-i,
unless exempted by lax,., or by the provisions hereof, shall be taxed for the purposes, to the extent
and in the manner herein provided.
A. DEFINITIONS
The reruns hereinafter set forth have the following meaning:
"'A' Map" shall mean a master final subdivision or parcel map, filed in accordance with
the Subdivision Map Act and the Cbula Vista Municipal Code, which subdivides thc land
or a portion thereof shown on a tentative map into "super block" lots corresponding to
unhs or phasing of combination of' units as shown on such tentative map and xvhicb max
further show open space lot dedications, backbone street dedications and utility easements
required to serve such "super block" lots.
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map. or if tile land area is not shoxvn on an Assessor's Parcel Map, the land area
shown on the applicable Final Subdivision Map, parcel map, condominium plan. record of'
survey, or other recorded document creating or describing the land area. If the preceding
maps for a land area are not available, the Acreage of such land area shall be determined by'
tine City En?~eer.
"Act" means the Mello-Roos Community Facilities Act of I982, as amended, being
Chapter 2.5. Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Fees and Expenses" means the actual or reasonably estimated costs
directly related to the administration of CFD-07q including, but not limited to, the
following: 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 othe~vise); 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-07-I, or any designee thereof of complying with arbitrage rebate requirements;
the costs to the City, CFD-07-I, or any designee thereof of providing continuing disclosure;
the costs associated xvith preparing Special Tax disclosure statements and responding to
public inquiries regarding the Special Taxes; the costs of the City, CFD-07-I, or any
designee thereof related to any appeal of the levy or application of the Special Tax; and the
Ci0, of CJntla Vista 12-02- 2002
Community Facilities Di3trict No 07-1,
Broo~fiebi Shc, a Ot~(1 I i/la,ge £1eve~l Page I
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-07-I, for
any other administrative purposes, including, but not limited to attorney's fees and other
costs related to commencing and pursuing to completion any foreclosure of delinquent
Special Taxes.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are
included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map,
excluding lettered lots thereon, that were recorded prior to the March 1st preceding the
Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a
building permit prior to the March 1st preceding the Fiscal Year in which the Special Tax is
being levied.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel mlmber.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property as determined in accordance with Section C. 1 .a.
"Available Funds" means (a)the balance in the reserve fund established pursuant to the
temps of the Indenture in excess of the reserve requirement as defined in such hqdenture,
(b)delinquent Special Tax payments not required to fund the Special Tax Requirement for
any preceding Fiscal Year, (c) that portion of Special Tax prepayments allocated to the
payment of interest on Bonds, and (d) 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 amount set forth in Section C. 1 .b.
"Bonds" means any bonds or other debt (as defined in the Act), whether in one or more
series, issued or incurred by CFD-07-I under the Act.
"Bond Year" means a one-year period beginning on September 2nd in each year and
ending on September 1st in the following year, unless defined other,vise in the applicable
Indenture.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD-07-1" means City of Chula Vista Community Facilities District No. 07-I.
"City" means the City ot'Chula Vista.
City of CImla ~/ista 12-02- 2002
CommuniO~ Facilities Diatrict No 07-1,
Brookfiehl Shea Otay k7llage Elevett Page 2
"Community Purpose Facility Property" means all Assessor's Parcels which are (a)
classified as community purpose facilities and meet the requirements of City of Chula Vista
Ordinance No. 2002-2883 as amended on November 5, 2002 or (b) designated on an "A'
Map or a Final Subdivision Map as a community purpose facility.
"Council" means the City Council of the City, acting as the legislative body of CFD-07-I.
"County" means the County of San Diego.
"Density" means for each Assessor's Parcel of Residential Property the number of
Dwelling Units per gross acre determined pursuant to those provisions of Ordinance No.
2866, in effect as of December 17, 2002, that provide for the calculation of density for
purposes of calculating Transportation Development Impact Fees.
"Developed Property" means all Assessor's Parcels of Taxable Property for which a
building permit has been issued prior to March lst preceding the Fiscal Year in which thc
Special Tax is being levied.
"Dwelling Unit" means each separate residential dwelling unit that comprises an
independent facility capable of conveyance or rental separate from adjacent residential
dwelling units.
"Exempt Property" means all Assessor's Parcels that are exempt from the Special Tax
pursuant to Section E. 1.
"Final Subdivision Map" means a subdivision of property, created by recordation or' a
final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to
the Subdivision Map Act (Califomia Government Code Section 66410 et seq.) or
recordation of a condominium plan pursuant to California Civil Code 1352, that creates
individuaI lots for which residential building permits may be issued without further
subdivision of such property.
"Fiscal Year" means the period 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 1 of Section C.
"Maximum Annual Special Tax" means the maximum annual Special Tax, determined
in accordance with the provisions of Section C, which may be levied in any Fiscal Year on
any Assessor's Parcel of' Taxable Property.
"Mixed Use Property" means all Assessor's Parcels that have been classified by the City
to allow both Residential Property and Non-Residential Property uses on each such
Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, each Land Use Class
City of Chtt[a ["i~ta 12-02- 2002
Community Facilitie~ Diso'ict No. 07-L
B~vokfieht Shea Ora)' I,'illage Elevelt Page 3
thereon is subject to taxation pursuant to the provisions of Section C regardless of the
geographic orientation of such Land Use Classes on such Assessor's Parcel. -
"Non-Residential Property" means all Assessor's Parcels of Developed Property, for
which a building permit(s) has been issued for a non-residential use, excluding
Comlnunity Purpose Facility Property.
"Open Space" means property within the boundaries of CFD 07-I in which prior to June
lst of the preceding Fiscal Year (a) has been designated with specific boundaries and
acreage on an 'A' Map or Final Subdivision Map as open space (b) is classified by the
County Assessor as open space (c) has been irrevocably offered for dedication as open
space to the federal government, the State of California, the County, the City, any other
public agency or (d) is encumbered by an easement or other restriction required by the
City limiting the use of such property to open space..
"Outstanding Bonds" means all Bonds, which remain outstanding as defined in the
Indenture.
"Property Owner Association Property" means any property within the boundaries of
CFD-07-1 which is (a) owned by a property owner association or (b) is designated with
specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property
owner association property. As used in this definition, a property owner association
includes any master or sub-association.
"Proportionately" means lbr Developed Property that the ratio of the actoal Special Tax
levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors'
Parcels of the Developed Property. For Approved Property, Undeveloped Property and
Provisional 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 like classification.
"Provisional Undeveloped Property" means all Assessor's Parcels of Public Prope~xy,
Property Owner Association Property, Community Purpose Facility Property, Open Space
or other property that would otherwise be classified as Exempt Property pursuant to the
provisions of Section E, but cannot be classified ag Exempt Property because to do so
would reduce the Acreage of all Taxable Property below the required minimum acreage as
set forth in Section E. 1 for Zone A or Zone B as applicable.
"Public Property" means any property within the boundaries of CFD-07-1 that which (a)
is owned by a public agency, (b) has been irrevocably offered for dedication to a public
agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final
Subdivision Map as property which will be owned by a public agency. For pm-poses of
this definition, a public agency includes the federal government, the State of California,
the County, the City or any other public agency.
City of CImht I/i~ta 12-02- 2002
CommuniO, Facilities Diatrict Nc). 07-[,
BrooXfield Shea Or,ti' l/il~age Elevelt Page 4
"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.
"Special Tax" means the annual special tax to be levied in each Fiscal Year on each
Assessor's Parcel of Taxable Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount of Special Tax revenue required in any
Fiscal Year for to: ti) pay annual debt service on all Outstanding Bonds due in the Bond
Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds,
including but not limited to, credit enhancement and rebate payment; (iii) pay
Administrative Fees and Expenses; (iv) pay any amounts required to establish or repleoish
any reserve funds for all Outstanding Bonds in accordance with the Indenture; and tv) pay
directly for acquisition and/or construction of public improvements which are authorized
to be financed by CFD-07-I provided that the inclusion of such amount does not cause an
increase in the levy of Special Tax on the Undeveloped Property; less (vi) a credit for
Available Funds.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries ol' CFD
07-I that are not exempt from the Special Tax pursuant to law or Section E below.
"Trustee" means tine trustee, fiscal agent, or paying agent tinder the Indenture.
"Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified
as Developed Property, Approved Property or Provisional Undeveloped Property.
"Zone A" means a specific geographic area as depicted in Exhibits A and B
attached hereto.
"Zone B" means a specific geographic area as depicted in Exhibits A and B
attached hereto.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessors' Parcels of Taxable Property within CFD-07-I shall be (a)
categorized as being located in either Zone A or Zone B, (b) classified as Developed
Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property
and (c) subject to the levy of annual Special Taxes determined pursuant to Sections C and
D below. Developed Property shall be assigned and shall be further classified as either
Residential Property, Non-Residential Property or Mixed Use Property. The Land Use
Class of each Assessor's Parcel of Residential Property or Mixed Use Property shall be
determined based on its Density. Once the Land Use Class of an Assessors Parcel of
Residential Property or Mixed Use Property is determined it cannot be changed.
City of Chula l/ista 12-02- 2002
Community Facilities Dixtrict No. 07-1,
Brookfieht Shea Otctv l/illage E/even Page $
C. MAXIMUM ANNUAL SPECIAL TAX RATE
1. Developed Property
The Maximum Annual Special Tax for each Assessor's Parcel of Residential
Property, Non-Residential Property or Mixed Use Property shall be the greater of'(l)
the Assigned Special Tax described in Table 1 below or (2) the Backup Special Tax
computed pursuant to Section b. below.
a. Assigned SpecialTax
The Assigned Special Tax for each Land Use Class of Developed Property is
shown in Table 1.
TABLE 1
Assigned Special Tax for Developed Property
Within Zone A and Zone B:
Land
Use Description Density Assigned Special Tax
Class (DU/Acre)
1 Residential 0 to 8 $1,560 per Dwelling Unit
Property
2 Residential >8 to 20 $1,248 per Dwelling Unit
Property
3 Residential >20 $936 per Dwelling Unit
Property
4 Non N/A $6,000 per/Acre
Residential
Property
The Assigned Special Tax for each Assessor's Parcel of Mixed Use Property
shalI equal the total of(i) the Assigned Special Tax that would be applicable to
such Assessor's Parcel if it was classified only as Residential Property and (ii)
the Assigned Special Tax that would be applicable to such Assessor's Parcel if
it was classified as Non-Residential Property.
b. Backup SpecialTax
'When a Final Subdivision Map is recorded within Zone A or Zone B, the Backnp
Special Tax for Residential Property and Non-Residential Property, shall be
detennined as £ollows:
For each Assessor's Parcel of Residential Property or Undeveloped Property and
Approved Property to be classified as Residential Property upon its development
within the Final Subdivision Map area, the Backup Special Tax shall be the l-ate per
Dwelling Unit calculated according to the following formula:
Zone A
$12,290 x A
U
Zone B
$21,299 x A
U
The temps above have the following meanings:
B = Backup Special Tax per Dwelling Unit in each Fiscal Year.
A- Acreage classified or to be classified as Residential Property in
such Final Subdivision Map.
U = Number of Dwelling Units in the Final Subdivision Map which are
classified or expected to be classified as Residential Property.
For each Assessor's Parcel of Developed Property classified as Non-Residential Property
or for each Assessor's Parcel of Approved or Undeveloped Property to be classified as
Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax
shall be deten,nined by multiplying $12,290 for Zone A and $21,299 for Zone B by the
total Acreage of any such Assessor's Parcel.
For each Assessor's Parcel of Mixed Use Property, the Backup Special Tax shall be
determined by multiplying $12,290 for Zone A and $21,299 for Zone B by the total
Acreage of any such Assessor's Pamel.
Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non-
Residential Property, Mixed Use Property, Approved 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 Subdivision Map, then the Backup
Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the
amount of Backup Special Tax that would have been generated if such change did not take
place.
City of Chula Yista 12-02- 2002
Community Facilities District No. 07-1,
Brookfield Shea Otay I/illage Eleven Page 7
2. Approved Property
The Maximum Annual Special Tax for each Assessor's Parcel of Approved Property shall
be. $12,290 per Acre £or Zone A and $21,299 per Acre for Zone B.
3. Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor's Parcel o£ Undeveloped Property and
Provisional Undeveloped Property shall be $12,290 per Acre for Zone A and $21,299 per
Acre for Zone B.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council
shall detemqine 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 all Developed Property at a rate
up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
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 all
Approved Property at up to 100% of the Maximum Annual Special Tax for Approved
Property.
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, the Special Tax shall be levied Proportionately on all
Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum
Annual Special Tax for Undeveloped Property. In determining the Acreage of an
Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special
Tax to be levied on such Assessor's Parcels of Undeveloped Property, the CFD
Administrator shall not include any Acreage shown on any applicable tentative subdivision
map or other land use entitlement approved by the City that designates such Acreage fbr a
use that would be classified as Open Space, Property Owner Association Property,
Community Purpose FaciLity or Public Property.
Fourthl If additional monies are needed to satisfy the Special Tax Requirement after the
first tlzree steps have been completed, the Special Tax to be levied on each Assessor's
ParceI of Developed Property whose Maximum Annual Special Tax is derived by the
application of the Backup Special Tax shall be increased Proportionately fi'om the
Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's
Parcel.
Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first
four steps have been completed, then the Special Tax shall be levied Proportionately on all -
City of Chula Vista 12-02- 2002
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Provisional Undeveloped Property at a rate up to 100% of the Maximum Annual Special
Tax for Undeveloped Property.
Notwithstanding the above, tinder no circumstances will the Special Tax levied against aoy
Assessor's Parcel of 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 Taxable Property.
E. EXEMPTIONS
1. The CFD Administrator shall classify the following as Exempt Property: (i)
Public Property, (ii) Property Owner Association Property, (iii) Community
Purpose Facility Property, (iv) Open Space and (v) Assessor's Parcels with public
or utility easements making impractical their utilization for other than the
purposes set forth in the easement; provided, however, that no such classification
sbalI reduce the sum of all Taxable Property to less than 124.65 Acres fol' Zooe A
and 81.54 Acres for Zone B. Assessor's Parcels xvbicb cannot be classified as
Exempt Property because such classification would reduce the Acreage ol' all
Taxable Property to less than 124.65 Acres for Zone A and 81.54 Acres lbr Zone
B will be classified as Provisional Undeveloped Property and shall be taxed
pursuant to the fifth step of Section D. Exempt statos for purposes of this
paragraph will be assigned by the CFD Administrator in the chronological order
in which property becomes Exempt Property.
2. The Maxiomm gamual Special Tax obligation for any property which would be
classified as Public Property upon its transfer or dedication to a public agency but
which is classified as Provisional Undeveloped Property pursuant to E.1 above
shall be prepaid in full by the seller pursuant to Section H.1, prior to the
transfer/dedication of such property to such public agency. Until the Maximum
Annual Special Tax obligation for any such Public Property is prepaid, the
property shall continue to be subject to the levy of the Special Tax as Provisional
Undeveloped Property.
3. [f the use of an Assessor's Parcel of Exempt Property changes so that such
Assessor's Parcel is no longer classified as one of the uses set forth in paragraph 1
that would make such Assessor's Parcel eligible to be classified as Exempt
Property, such Assessor's Parcel shall cease to be classified as Exempt Property
and shall be deemed to be Taxable Property.
F. 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 sball first consult with the CFD Administrator regarding such
error. If following such consultation, the CFD Administrator determines that an error bas
occurred the CFD Administrator may amend the amount of the Special Tax levied on such
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Broolfieht Shea Otay Village Eleve~ Page 9
Assessor's Parcel. If following such consultation and action (if any by the CFD
Administrator), the landowner or resident believes such error still exists, such person may
file a written notice ~vith the City Clerk of the City appealing the amount of the Special Tax
levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall
forward a copy of such notice to the City Manager who shall establish as part of the
proceedings and administration of CFD-07-I a special three-member Reviexv/Appeal
Committee. 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 decisinn of the Review/Appeal Committee shall be final and binding
as to all persons.
G. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes; provided, however, that CFD-07-I, 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 of Taxable Property that are delinquent in tile payment of
Special Taxes.
Tenders 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. Hoxvever, -
the use of Bond tenders shall only be allowed on a case-by-case basis as specifically
approved by the Council.
H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
"CFD Public Facilities" means those public facilities authorized to be financed by CFD-
07-I.
"CFD Public Facilities Costs" means either $ 39.6 million, or such lower number as shall
be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public
Facilities, or (b) the Council concurrently with a covenant that it will not issue any more
Bonds to be secured by Special Taxes levied under this Rate and Method of
Apportionment.
"Construction Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct the CFD Public
Facilities.
"Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of
the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously
issued Bonds, (ii) fi'om interest earnings on the Construction Fund actually earned prior to
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the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of
the proceeds of all previously issued Bonds then on deposit in the Construction Fund.
"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 Bonds to be redeemed at a later date with the proceeds ofpt-ior prepayments of
Maximum Annual Special Taxes.
1. Prepayment in Full
The Maximum Ammal Special Tax obligation may only be prepaid and permanently
satisfied for an Assessor's Parcel of Developed Property, Undeveloped Property or
Approved Property for which a building permit has been issued, or Provisional
Undeveloped 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
Special Tax permanently satisfied as described herein; provided, however 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
Maxinmm AnnnaI 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.
The CFD Administrator may charge a reasonable fee for providing this figure, which can be
collected prior to preparing sucb calculation.
The prepayment amount shall be calculated as summarized below (capitalized terms as
defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Prepayment Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
equals Prepayment Amount
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As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as folloxvs:
Step No.:
1. For Developed Property, compute the Maximum Annual Special Tax for the
Assessor's Parcel to be prepaid. For Assessor's Pamels of Approved Property or
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 issued for that Assessor's Pamel. For Assessor's
Parcels of Provisional Undeveloped Property to be prepaid, compute the Maximum
Annual Special Tax for that Assessor's PameI using the Maximum Annual Special
Tax for Provisional Undeveloped Property.
2. Divide the Maximum Annual Special Tax computed pursuant to stepl by the sum of
the total expected Maximum Annual Special Tax revenues which may be levied
within CFD-07-I excluding any Assessors Parcels for which the Maximum Annual
Special Tax obligation has been previously prepaid.
3. Multiply the quotient computed pursuant to step 2 by the principal amount ol' thc
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 step 3 by the
applicable redemption premium on the next possible Bond call date, if any, on the
Outstanding Bonds to be redeemed (the "Redemption Premium").
5. If all the Bonds attthorized to be issued by CFD-07-I have not been issued, then
compute the Future Facilities Costs.
6. Multiply the quotient computed pursuant to step 2 by the amount if any, determined
pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to
such Assessor's Parcel (the "Future Facilities Amount").
7. Compute the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date follo~ving the current Fiscal Year
until the earliest redemption date for the Outstanding Bonds.
8. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal
Year, which have not yet been paid.
10. Determine the fees and expenses of CFD-07-I, including but not limited to, the costs
of computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds from the proceeds of such prepayment, and the cost of'
recording any notices to evidence the prepayment and the redemption
City of Cbuk~ Vis'to 12 02- 20t;2
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(the"Prepaymen, Fee and Expenses").
11. Compute the amount the CFD Administrator reasonably expects to derive from the
reinvestment of the prepayment amount, less the Prepayment Fees and Expenses,
pursuant to step 10, from the date of prepayment until the redemption date for the
Outstanding Bonds to be redeemed with the prepayment.
12. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount
computed pursuant to step 11 (the "Defeasance Amount").
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated with the redemption of Outstanding Bonds as a result of the prepayment,
or (b) the amount derived by subtracting the new reserve requirement (as defined io
the Indenture) in effect after the redemption of Outstanding Bonds as a result o£ the
prepayment fi'om the balance in the reserve fund on the prepayment date, but iu no
event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at
the time of the first interest payment following the current Fiscal Year, a capitalized
interest credit shall be calculated by multiplying the quotient computed pm'suant to
step 2 by the expected balance in the capitalized interest fund after such first intercst
payment (the "Capitalized Interest Credit").
15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts
computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to
steps 13 and 14 (the "Pret~ayment Amount").
16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13
and 14 shall be deposited into the appropriate fund as established under the Indenture
and be used to retire Outstanding Bonds or make debt service payments. The amount
computed pursuant to step 10 shall be retained by CFD-07-I. The amount computed
pursuant to step 6 shall be deposited in the Construction Fund.
The prepayment amount may be sufficient to redeem other than a $5,000 increment of
Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be
retained in the appropriate fund established under the Indenture to be used with the next
prepayment o f bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined
under step 9 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 Special Taxes and the release of the
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
City of Chula ?ista 12-02- 2002
Community Facilitiea District No. 07-1,
Brookfield Shea Otay I~illage Eleven Page I3
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Maximum Annual Special Taxes that may be levied on Taxable Property within
both prior to and after the proposed prepayment is at least 1.1 times the maximtm~ annual
debt service on all OutstandingBonds.
2. Prepayment in Part
The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an
Assessor's Parcel of Approved Property or Undeveloped Property for which a building
permit has been issued may be partially prepaid. The amount of the prepayment sl~all be
calculated as presented in Section H.1; except that a partial prepayment shall be calculated
according to the following formula:
PP =(Pi x F) + A
These terms have the following meaning:
PP = the partial prepayment
Pi = the Prepayment Amount calculated according to Section H.1, minus Prepayment Fees
and Expenses detem~ined pursuant to step 10.
F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the
Maximum Armual Special Tax.
A= the Prepayment Fees and Expenses detemfined pursuant to step 10. -
The owner of an Assessor's Parcel who desires to partially prepay the Maximum Anm~al
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 shal[ provide the owne~' with a
statement of the amount required for the partial prepayment of the Maximnm Anmtal
Special Tax l'or an Assessor's Parcel within 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 step 16 of Section H.1, and (ii) indicate in the records
of CFD-07-I 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 ParceI pursuant to Section D.
I. TERM OF MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2003-2004
to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for
a period no longer than the 2042-2043 Fiscal Year.
City of Chtda I/ista 12-02- 2002
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