HomeMy WebLinkAboutOrd 2020-3481ORDINANCE NO. 3481
ORDINANCE OF THE CITY OF CHULA VISTA ACTING AS
THE LEGISLATIVE BODY OF THE BAYFRONT PROJECT
SPECIAL TAX FINANCING DISTRICT, AUTHORIZING THE
LEVY OF A SPECIAL TAX IN SUCH DISTRICT
WHEREAS, the City Council (the “City Council”) of the City of Chula Vista (the “City”),
has initiated proceedings, held a public hearing, conducted an election and received a favorable
vote from the qualified electors authorizing the levy of special taxes in the Bayfront Project Special
Tax Financing District (the “District”), all as authorized pursuant to Chapter 3.61 of the Chula
Vista Municipal Code (Chapter 3.61).
The City Council of the City of Chula Vista, acting as the legislative body of the Bayfront
Project Special Tax Financing District, does hereby ordain as follows:
SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy
of special taxes on taxable properties located in the District pursuant to the Rate and Method of
Apportionment of Special Taxes as set forth in Exhibit A attached hereto and incorporated herein
by this reference (the “Rate and Method”).
SECTION 2. This City Council, acting as the legislative body of the District, is hereby
further authorized, by resolution, to annually determine the special tax to be levied within the
District for the then current tax year or future tax years; provided, however, the special tax to be
levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and
Method.
SECTION 3. The Special Taxes will be due and remitted with the Operator’s payment of
transient occupancy taxes as set forth in Chapter 3.40 of the Chula Vista Municipal Code (Chapter
3.40). If a Landowner is not an Operator, the Landowner shall cause the Operator to remit the
Special Taxes imposed with the Operator’s payment of transient occupancy tax. Such Landowner
obligation may be met by including a requirement to remit the Special Taxes in a lease or other
real property instrument for a Campsite Property or Hotel Property (each as defined in the Rate
and Method of Apportionment) and enforcing such requirement, as provided for in the real
property instrument. However, the Special Tax is not imposed on the Transient (as defined in
Chapter 3.40), but on the parcel or possessory interest in a parcel containing a Hotel or Campsite
(as such terms are defined in Chapter 3.61). The Operator may, but is not required to, pass the
Special Tax through to the Transients and collect it with Rent (as defined in Chapter 3.40). Despite
the method of collection and administration, the Special Tax is distinct from the City’s transient
occupancy tax and, subject to the Rate and Method of Apportionment, may be enforced, in the
event of nonpayment, as provided in the Mello-Roos Community Facilities Act of 1982, including
through a judicial foreclosure; however, the City Council reserves the right to utilize any other
lawful means of billing, collecting, and enforcing the Special Taxes, including billing on the
secured property tax roll, direct and supplemental billing, any other legal authority to collect
delinquent Special Taxes, penalties and interest and when lawfully available, judicial foreclosure
of the lien of the Special Taxes.
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Ordinance No. 3481
Page No. 2
Subject to the Rate and Method of Apportionment, any Special Taxes delinquent as of July
1 of any fiscal year, together with any penalties and interest accrued as of that date, may, at the
option of the City Council, acting as the legislative body of the District, be placed on the secured
property tax roll in that fiscal year and be levied on the parcel for which such Special Taxes are
delinquent, where it shall be collected in the same manner as ordinary ad valorem property taxes
are collected and shall be subject to the same penalties and the same procedure, sale and lien
priority in case of delinquency as is provided for ad valorem taxes.
The Special Taxes are imposed by the District and not the City. The Special Tax shall be
levied by the District, in any year, only on a parcel or a possessory interest in a parcel within the
District for the use of such property during such year as Hotel Property or Campsite Property.
SECTION 4. This Ordinance shall be effective upon 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
312(b).
[SIGNATURES ON THE FOLLOWING PAGE]
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Ordinance No. 3481
Page No. 3
Presented by Approved as to form by
Kelly G. Broughton FASLA Glen R. Googins
Director of Developmental Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula
Vista, California, this 25th day of February 2020, by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 3481 had its first reading at a regular meeting held on the 18th day of February
2020, and its second reading and adoption at a regular meeting of said City Council held on the
25th day of February 2020; and was duly published in summary form in accordance with the
requirements of state law and the City Charter.
Dated Kerry K. Bigelow, MMC, City Clerk
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RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX
BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT
The Special Tax authorized by the Bayfront Project Special Tax Financing District (the “District”) shall be
levied on all Taxable Property and collected within the District as provided herein commencing in Fiscal
Year 2020-2021, in an amount determined by the City Council of the City of Chula Vista, acting as the
legislative body of the District, through the application of the rate and method of apportionment of the
Special Tax set forth below. All of the real property within the District, unless exempted by law or by the
provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Act” means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2
of Title 5 of the Government Code of the State of California.
“Assessor’s Parcel” means a lot or parcel designated on an Assessor’s Parcel Map with an assigned
Assessor’s Parcel number within the boundaries of the District.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by
Assessor’s Parcel number.
“Bond Documents” means any indenture of trust, bond indenture, fiscal agent agreement, trust
agreement, resolution or other instrument setting forth the terms of any Bonds, as modified,
amended and/or supplemented from time to time, and any instrument replacing or supplementing
the same.
“Bonds” means any binding obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or individuals, or long-term
contracts, or any refunding thereof, to which the Special Tax has been pledged.
“Boundary Map” means the “Map of Proposed Boundaries of the Bayfront Project Special Tax
Financing District, City of Chula Vista, County of San Diego, State of California,” filed September 12,
2019 in Book 48 of Maps of Assessments and Community Facilities Districts in the office of the County
Recorder.
“Calendar Year” means the period commencing January 1 of any year and ending the following
December 31.
“Campsite” shall have the meaning given such term in Chapter 3.61.
“Campsite Property” means an Assessor’s Parcel of Taxable Property which consists of any Campsite
or Campsites.
“Chapter 3.61” means Chapter 3.61 of the Chula Vista Municipal Code.
“City” means the City of Chula Vista.
Exhibit A
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“City Council” means the City Council of the City, acting as the legislative body of the District, or its
designee.
“City Manager” means the City Manager of the City.
“County” means the County of San Diego.
“Director of Finance” means the Director of Finance of the City.
“District” means the Bayfront Project Special Tax Financing District established by the City pursuant
to Chapter 3.61.
“Exempt Property” means all Assessor’s Parcels within the District which are exempt from the
Special Tax pursuant to law or Section F herein.
“Fiscal Year” means the period commencing on July 1 of any year and ending the following June 30.
“Hotel” shall have the meaning given such term in Chapter 3.61.
“Hotel Property” means an Assessor’s Parcel of Taxable Property which consists of any Hotel or
Hotels.
“Landowner” shall have the meaning given such term in Chapter 3.61.
“Maximum Annual Special Tax Rate” shall, for any Fiscal Year, not exceed five percent (5%) of all
Rent charged during such Fiscal Year for the privilege of Occupancy by Transients of the Campsite(s)
or Hotel(s), as applicable, located on each Assessor’s Parcel of Campsite Property or Hotel Property.
“Occupancy” shall have the meaning given such term in Chapter 3.61.
“Operator” shall have the meaning given such term in Chapter 3.61.
“Port District” means the San Diego Unified Port District.
“Public Property” means any property within the boundaries of the District that is owned or held in
trust by or irrevocably dedicated to the City, the federal government, the State of California, the
County, the Port District, or any other public agency.
“Rent” shall have the meaning given such term in Chapter 3.61.
“Resolution of Formation” means the resolution adopted by the City Council pursuant to Chapter
3.61 establishing the District.
“Special Tax” means the special tax authorized by the District to be levied by the City Council
pursuant to Chapter 3.61.
“Taxable Property” means all Assessor’s Parcels that are not exempt from the Special Tax pursuant
to law or this Rate and Method of Apportionment of Special Tax.
“Transient” shall have the meaning given such term in Chapter 3.61.
B. CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2020-2021, each Assessor’s Parcel shall be classified as Taxable
Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further
classified as Campsite Property or Hotel Property. Commencing with Fiscal Year 2020-2021, all Campsite
Property and Hotel Property shall be subject to the levy of the Special Tax pursuant to Section C below.
Exhibit A
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C. SPECIAL TAX
For each Fiscal Year commencing Fiscal Year 2020-2021, the City Council shall, by resolution adopted on
or before May 31st preceding such Fiscal Year, levy the Special Tax on each Assessor’s Parcel classified as
Campsite Property or Hotel Property at a rate not to exceed the Maximum Annual Special Tax Rate. For
each succeeding Fiscal Year, the Special Tax shall be levied at the same rate as the rate levied in the
preceding Fiscal Year unless the City Council shall, by resolution adopted by May 31st of the preceding
Fiscal Year, levy the Special Tax at a different rate than the rate levied in the preceding Fiscal Year not to
exceed the Maximum Annual Special Tax Rate.
The Special Tax associated with Rent that is charged for Occupancy by Transients shall be considered
levied at the same time the Transient ceases such Occupancy. If a Public Property is classified as Campsite
Property or Hotel Property due to the grant of a lease or other possessory interest in such Assessor’s
Parcel of Public Property to the Operator of a Campsite or Hotel thereon, the Special Tax shall only be
levied during such time that such grant of lease or possessory interest is effective and shall cease upon
the termination or expiration of such grant of lease or possessory interest.
D. MANNER OF COLLECTION
The Special Tax shall be due and remitted pursuant to the provisions of Section 3.61.120 of Chapter 3.61.
E. PREPAYMENT OF THE SPECIAL TAXES
The Special Tax may not be prepaid.
F. EXEMPTIONS
Assessor’s Parcels not classified as Campsite Property or Hotel Property shall be exempt from the levy of
the Special Tax.
G. FAILURE TO SUBMIT SPECIAL TAX
If the Operator of any Campsite or Hotel located on an Assessor’s Parcel of Campsite Property or Hotel
Property, or the Landowner of an Assessor’s Parcel of Campsite Property or Hotel Property that is not
Public Property, fails or refuses to pay the Special Tax levied on such Assessor’s Parcel when due, the
Director of Finance shall proceed in such manner as deemed best to obtain facts and information on which
to base his/her estimate of such Special Tax. As soon as the Director of Finance has acquired such facts
and information upon which to base such Special Tax for such Campsite Property or Hotel Property, the
Director of Finance shall proceed to determine the amount of such Special Tax due plus any penalties
thereon, as described below ("Determination of Special Tax Due"). In the case that such determination is
made, the Director of Finance shall give a Determination of Special Tax Due by serving it personally or by
depositing it in the United States mail, postage prepaid, addressed to such Operator or such Landowner,
as applicable, at its last known address. Such Operator or such Landowner, as applicable, may file an
appeal as provided in Section J herein.
The Special Tax on any Campsite Property or Hotel Property which is not paid within the time required
shall be subject to the same penalties applicable to the transient occupancy tax in subsections A and B of
Section 3.40.080 of the Chula Vista Municipal Code. For any Special Taxes and penalties that remain
outstanding as of July 1 of each Fiscal Year, the City Council may direct the Director of Finance to cause
the submission of any of the delinquent Special Taxes and penalties to the County for inclusion o n the
property tax bill for such Assessor's Parcel(s) in accordance with Section 3.61.130 of Chapter 3.61;
Exhibit A
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provided, however, that any delinquent Special Taxes and penalties with respect to any Assessor’s Parcel
of Public Property that is classified as Campsite Property or Hotel Property due to the grant of a lease or
other possessory interest in such Assessor’s Parcel of Public Property to the Operator of a Campsite or
Hotel thereon shall only be levied on and constitute a lien against the Operator’s leasehold or possessory
interest in such Assessor’s Parcel of Public Property, all as contemplated by Section 53340.1 of the Act, as
modified by Chapter 3.61, and shall not be an obligation for which the Landowner of such Assessor’s Parcel
of Public Property is billed or responsible.
H. MAINTENANCE OF RE CORDS; SPECIAL TAX AUDIT
It shall be the duty of the Operator of any Campsite or Hotel located on any Assessor's Parcel classified as
Campsite Property or Hotel Property that is subject to the Special Tax to keep and preserve, for a period
of three years, all records as may be deemed necessary by the Director of Finance (and that will, at a
minimum, include a record of all Rents collected) to determine the Special Taxes levied upon such
Campsite Property or Hotel Property by the City Council. The Director of Finance shall have the right to
inspect such records at all reasonable times.
I. APPEAL
Any Operator of a Campsite or Hotel located on any Campsite Property or Hotel Property or any
Landowner of any Campsite Property or Hotel Property claiming that the amount or application of the
Special Tax reflected in any Determination of Special Tax Due on such Campsite Property or Hotel Property
is not correct, may appeal such Determination of Special Tax Due by filing a notice of appeal with the City
Clerk within fifteen (15) calendar days of the serving or mailing of such Determination of Special Tax Due.
If such appeal is made by an Operator that is not also the Landowner of such property, then the Operator
shall also provide a copy of such notice of appeal to the Landowner at the same time the Operator files
the notice of appeal with the City Clerk. Upon 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 the District a special three-member Appeal Committee. The Appeal Committee may establish such
procedures as it deems necessary to undertake the review of any such appeal. The Appeal Committee
shall interpret this Rate and Method of Apportionment and make determinations relative to the annual
administration of the Special Tax and any appeals by Landowners, or Operators, as herein specified. The
decision of the Appeal Committee shall be final, conclusive, binding as to all persons and shall be served
upon the Operator or Landowner in writing at the last known address of such Operator or Landowner.
Any amount found due shall be immediately due and payable upon service of the Appeal Committee
findings. If the Appeal Committee decision requires that the Special Tax for an Assessor’s Parcel be
modified or changed in favor of the Operator or Landowner, a cash refund shall not be made, but a credit
shall be given against the future Special Taxes on that Assessor’s Parcel.
J. TERM OF THE SPECIAL TAXES
The Special Tax shall be levied as long as necessary to pay for authorized expenditures as specified in
Section 3.61.080 of Chapter 3.61 for a period not to exceed the longer of: (a) forty years from the first day
of the month immediately following the effective date of the ordinance enacted by the City Council
providing for the levy of the Special Tax; or (b) the date on which all indebtedness of the Chula Vista
Bayfront Facilities Financing Authority, with respect to which District Special Tax revenues have been
pledged, has been paid in full.
Exhibit A
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