HomeMy WebLinkAboutReso 2020-029RESOLUTION NO. 2020-029
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 16-I (MILLENIA),
MAKING CERTAIN DETERMINATIONS AND
AUTHORIZING THE SUBMITTAL OF THE PROPOSED
CHANGES TO THE RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAXES AUTHORIZED TO
BE LEVIED WITHIN IMPROVEMENT AREA NO. 2 OF
COMMUNITY FACILITIES DISTRICT NO. 16-I (MILLENIA)
TO THE QUALIFIED ELECTORS THEREOF
WHEREAS, the City Council of the City of Chula Vista, California (the “City Council”),
has previously undertaken proceedings to form Community Facilities District No 16-I (Millenia)
(the “District”), to designate two improvement areas therein (“Improvement Area No.1” and
“Improvement Area No. 2” each an “Improvement Area” and collectively, the “Improvement
Areas”) and to authorize the levy of special taxes within each Improvement Area and the issuance
by the District of bonds for each Improvement Area pursuant to the 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”) to finance the acquisition or construction of certain authorized facilities;
and
WHEREAS, the qualified electors of each Improvement Area of the District, voting in a
special election held on September 13, 2016, approved the authorization to levy special taxes
within each Improvement Area pursuant to a separate rate and method of apportionment of such
special taxes for each Improvement Area (the rate and method of apportionment of special taxes
approved for Improvement Area No. 2 shall be referred to as the “Existing Improvement Area No.
2 RMA”); and
WHEREAS, subsequent to the formation of the District and such election, SLF IV-
Millenia, LLC (the “Developer”), the master developer of the property within the District
requested that the City Council, acting as the legislative body of the District, delete certain
commercial property from Improvement Area No. 2 and initiate proceedings to consider modifying
the Existing Improvement Area No. 2 RMA (the “Change Proceedings”); and
WHEREAS, the modified boundaries of Improvement Area No. 2 were approved by the
City Council on January 7, 2020, by the adoption of its Resolution No. 2020-001 and are shown
on the map entitled “Amended Boundary Map of Community Facilities District No. 16 -I
(Millenia), City of Chula Vista, County of San Diego, State of California,” which was filed on
January 15, 2020, in Page 67 of Book 48 of Maps of Assessment and Community Facilities
Districts as Instrument No. 2020-7000009 (the “Improvement Area No. 2 Amended Boundary
Map”). A copy of the Improvement Area No. 2 Amended Boundary Map is also on file in the
Office of the City Clerk (the “City Clerk”); and
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Resolution No.2020-029
Page No. 2
WHEREAS, the City Council has adopted its Resolution No. 2020-001 declaring its
intention to consider modifications to the Existing Improvement Area No. 2 RMA so that the rate
and method of apportionment of special taxes authorized to be levied within Improvement Area
No. 2 reads as set forth in Exhibit A attached to Resolution No. 2020-001 (the “Amended
Improvement Area No. 2 RMA”) and attached as Exhibit A hereto and incorporated herein by this
reference; and
WHEREAS, notice of a public hearing to consider the modifications to the Existing
Improvement Area No. 2 RMA has been given in the form and manner required by the Act; and
WHEREAS, it has now been determined that written protests have not been received by
(a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing
within Improvement Area No. 2 or (b) owners of one-half or more of the area of land in the territory
included in Improvement Area No. 2 to the Amended Improvement Area No. 2 RMA; and
WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote
within Improvement Area No. 2 for each of the ninety (90) preceding days, this legislative body
desires to submit the question of authorizing special taxes to be levied in Improvement Area No.
2 in accordance with the Amended Improvement Area No. 2 RMA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
acting as the legislative body of community facilities district no. 16-I (Millenia), as follows:
SECTION 1. Recitals. The above recitals are all true and correct.
SECTION 2. Determinations. It is hereby determined by this City Council that:
A. All prior proceedings pertaining to the Change Proceedings were valid and taken
in conformity with the requirements of the law, and specifically the provisions of
the Community Facilities District Law.
B. The written protests received, if any, do not represent a majority protest as defined
by the applicable provisions of the Community Facilities District Law as applied to
Improvement Area No. 2 and, therefore, the special tax proposed to be levied within
Improvement Area No. 2 in accordance with the Amended Improvement Area No.
2 RMA has not been precluded by majority protest.
C. The Change Proceedings conform to the City of Chula Vista Statement of Goals
and Policies Regarding the Establishment of Community Facilities Districts (the
“Goals and Policies”), as amended, with the exception of certain exemptions to the
Goals and Policies provided for in the terms and conditions of the “Financing Plan”
contained within that certain Development Agreement pertaining to the Millenia
project by and between the City and McMillin Otay Ranch LLC, predecessor in
interest to SLF IV-Millenia, LLC, the current owner of a portion of the property
within Improvement Area No. 2.
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Resolution No. 2020-029
Page No. 3
D. Less than twelve (12) registered voters have resided within the territory of
Improvement Area No. 2 for each of the ninety (90) days preceding the close of the
public hearing, therefore, pursuant to the Act the qualified electors of Improvement
Area No. 2 shall be the landowners of Improvement Area No. 2 as such term is
defined in Section 53317(f) of the Act and each such landowner who is the owner
of record as of the close of the public hearing, or the authorized representative
thereof, shall have one vote for each acre or portion of an acre of land that she or
he owns within Improvement Area No. 2.
E. The time limit specified by the Community Facilities District Law for conducting
an election to submit the question to authorize the levy of the special taxes within
Improvement Area No. 2 in accordance with the Amended Improvement Area No.
2 RMA to the qualified electors of Improvement Area No. 2 and the requirements
for impartial analysis and ballot arguments have been waived with the unanimous
consent of the qualified electors of Improvement Area No. 2.
SECTION 3. Election. The proposition to authorize the levy of special taxes within
Improvement Area No. 2 pursuant to the Amended Improvement Area No. 2 RMA shall be
submitted to the qualified electors of Improvement Area No. 2, such electors being the landowners
in Improvement Area No. 2, with each landowner having one (1) vote for each acre or portion
thereof of land which he or she owns within Improvement Area No. 2, at a special election to be
held on February 18, 2020, and such election shall be a special election to be conducted by the
City Clerk (the “Election Official”). If the proposition receives the approval of two-thirds (2/3) or
more of the votes cast, the proposition shall be approved.
SECTION 4. Ballots. The ballot proposal to be submitted to the qualified electors of
Improvement Area No. 2 at the election shall generally be as follows:
PROPOSITION A
Shall Community Facilities District No. 16-I (Millenia) (the “CFD No. 16-I”), subject to
accountability measures set forth in California Government Code Section 50075.1, be authorized
to levy a special tax throughout Improvement Area No. 2 of CFD No. 16-I pursuant to the rate and
method of apportionment of such special taxes set forth in Attachment A to this ballot (the
“Amended Improvement Area No. 2 RMA”)?
SECTION 5. Vote. The appropriate mark placed on the line in front of the word “YES”
shall be counted in favor of the adoption of the proposition, and the appropriate mark placed on
the line in front of the word “NO” in the manner as authorized, shall be counted against the
adoption of such proposition.
SECTION 6. Election Procedure. The Election Official is hereby authorized to take any
and all steps necessary for the holding of such election. The Election Official shall perform and
render, or cause to be performed and rendered, all services and proceedings incidental to and
connected with the conduct of the election, which services shall include, but not be limited to, the
following activities as are appropriate to the election:
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A. Prepare and furnish to the election officers necessary election supplies for the
conduct of the election.
B. Printed the requisite number of official ballots, tally sheets and other necessary
forms.
C. Furnish and address official ballots for the qualified electors.
D. Deliver the official ballots to the qualified electors or their authorized
representatives, as required by law.
E. Receive the returns of the election and supplies.
F. Sort and assemble the election material and supplies in preparation for the
canvassing of the returns.
G. Canvass the returns of the election.
H. Furnish a tabulation of the number of votes given in the election.
I. Conduct and handle all other matters relating to the proceedings and conduct of the
election in the manner and form as required by law.
[SIGNATURES ON THE FOLLOWING PAGE]
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Resolution No. 2020-029
Page No. 5
Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 18th 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
Resolution No. 2020-029 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 18th day of February 2020.
Executed this 18th day of February 2020.
Kerry K. Bigelow, MMC, City Clerk
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AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 16-I (MILLENIA)
IMPROVEMENT AREA NO. 2
A Special Tax shall be levied on all Taxable Property within the boundaries of Improvement Area No. 2 of
Community Facilities District No. 16-I (Millenia) (“IA2”) and collected each Fiscal Year commencing in
Fiscal Year 2019-20, 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 Assessor’s Parcel as shown on an Assessor’s Parcel Map,
or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final
Map. 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.
“Act” 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 computing the Annual Special
Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (w hether
by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs
of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal
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 disclosure or reporting
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 Taxes; the costs to the City, CFD No. 16-I, or any designee thereof related to an appeal of the
Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 16-I for any other administrative
purposes of CFD No. 16-I, including attorney’s fees and other costs related to commencing and pursuing
any foreclosure of delinquent Special Taxes.
“Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel.
“Assessor” means the Assessor of the County of San Diego.
“Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s
Parcel Number.
Exhibit A
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“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel
Number.
“Assessor’s Parcel Number” means the number assigned to an Assessor’s Parcel by the County for
purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section 3.A below.
“Backup Special Tax” means the Special Tax of that name described in Section 3.B below.
“Bonds” means any bonds or other debt of CFD No. 16-I issued or incurred for IA2, whether in one or
more series, secured by the levy of Special Taxes.
“Building Permit” means a building permit for construction of a Residential Unit or non-residential
structure within IA2 issued by the City.
“Building Square Footage” means all of the square footage of living area within the perimeter of a
residential structure, not including any carport, walkway, garage, overhang, or similar area. The
determination of Building Square Footage shall be made by the CFD Administrator by reference to the
Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the
City. Building Square Footage for a Residential Unit will be based on the Building Permit(s) issued for
such Residential Unit prior to it being classified as Occupied Residential Property, and shall not change as
a result of additions or modifications made to such Residential Unit after such classification as Occupied
Residential Property.
“Calendar Year” means the period commencing January 1 of any year and ending the following
December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for
determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the
Backup Special Tax.
“CFD No. 16-I” means the Community Facilities District No. 16-I (Millenia).
“City” means the City of Chula Vista, California.
“City Council” means the City Council of the City 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 Civil 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 Property” means for each Fiscal Year, all Taxable Property, exclusive 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
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Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property,
provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 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 Buil ding Permit has been
cancelled and/or voided shall be reclassified as Undeveloped Property.
“Development 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 Recorder’s 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 California Civil Code 4285 that creates individual lots for
which Building Permits may be issued without further subdivision.
“Fiscal Year” means the period starting on July 1 and ending the following June 30.
“Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement.
“Fiscal Agent Agreement” means the fiscal agent agreement, indenture, 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.
“IA2” means Improvement Area No. 2 of CFD No. 16-I.
“Land Use Class” means any of the classes listed in Table 1 or 2 under Section 3A below.
Note: Land Uses Class is not in reference to a property’s zoning designation.
“Lot(s)” means an individual legal lot created by a Final Map for which a building permit for residential
construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal
lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of
Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final
Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as
shown on such Final Map.
“Master Developer” means SLF IV-Millenia, LLC or its successors or assignees as defined in the
Development Agreement.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in
accordance with Sections 3.C and 3.D below, which may be levied in a given Fiscal Year on such Assessor’s
Parcel of Taxable Property.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building
Permit has been issued for the purpose of constructing one or more non-residential units or structures.
“Occupied Residential Property” means all Assessor Parcels of Residential Property for which title is
held by an end user (homeowner).
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“Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent
Agreement.
“Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an
Assessor’s Parcel as described in Section 8.A below.
“Property Owner Association Property” means any Assessor’s Parcel within the boundaries of IA2
owned in fee by a property owner association, including any master or sub-association.
“Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special
Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels
of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual
Special Tax levy per Acre to the Maximum Special Tax per 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 Property” means all Assessor’s Parcels of Public Property, Property Owner 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 Property” means any property within the boundaries of IA2, which is owned by, or irrevocably
offered for dedication to the federal government, the State of California, the County, the City or any other
public agency; provided however that any property owned by a public agency and leased to a private entity
and subject to taxation under Section 53340.1 of the Act shall be taxed 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 for 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 Tax” means any special tax levied within IA2 pursuant to the Act and this Amended and Restated
Rate and Method of Apportionment of Special Tax.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay
the Special Tax for the remaining life of IA2.
“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 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 taxes levied in the previous Fiscal Year in all community facilit ies districts
within 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
IA2 for all subsequent Fiscal Years in which Special Taxes are levied; less (vii) a credit for funds available
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to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal
Agent Agreement.
“State” means the State of California.
“Taxable Property” 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 Property” means, for each Fiscal Year, all Taxable Property not classified as Developed
Property or Provisional Property.
“Zone A” means the specific geographic area designated as such within IA2 and as depicted in Exhibit A
attached hereto.
“Zone B” means the specific geographic area designated as such within IA2 and as depicted in Exhibit A
attached hereto.
2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2019-20, each Assessor’s Parcel within IA2 shall be classified
as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as
Developed Property, Undeveloped Property or Provisional Property, and all such Taxable Property shall be
subject to the levy of Special Taxes in accordance with this Amended and Restated Rate and Method of
Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each
Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class
based on its Building Square Footage.
For Assessor’s Parcels of Non-Residential Property developed with Condominiums (e.g., office or
industrial condos), the Acreage applicable to each such Condominium for purposes of levying Special
Taxes shall be computed from the Acreage of the legal lot created by the Final Map upon which such
Condominiums are entitled to be developed, with the Acreage of such lot allocated to each Condominium
on a pro-rata basis using the building square footage 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 Footage for each non-residential Condominium shall be made by 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 legal lot, the Building 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 by the City as reasonably determined by the CFD Administrator. In the event the City takes
ownership of a Condominium within IA2 and such property in all other respects meets the definition of
Public Property as set forth in Section 1, such property shall be exempt from Special Taxes pursuant to
Section 5.
In the event a Building Permit is issued for one or more residential Condominiums prior to March 1 of the
previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such
Condominium for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both
Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such
Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned
Special Tax applicable to each Condominium for which a Building Permit was issued prior to March 1 of
the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Condominiums for
which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped
Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of
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remaining Condominiums to the total number of Condominiums entitled to be developed on such
Assessor’s Parcel. The total number of Condominiums entitled to be developed on the applicable
Assessor’s Parcel shall be determined from the recorded condominium map, condominium plan, applicable
site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD
Administrator.
3. SPECIAL TAX RATES
A. Assigned Special Tax for Developed Property
The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property
commencing Fiscal Year 2019-20 shall be determined pursuant to Table 1 or 2 below, as applicable.
Table 1
Assigned Special Tax Rates for
Developed Property within Zone A
Land Use
Class
Land Use
Type
Building Square
Footage
Assigned
Special Tax
1 Residential Property ≤ 1,450 $1,443.24 per
Residential Unit
2 Residential Property > 1,450 $1,727.65 per
Residential Unit
3 Non-Residential Property N/A $6,367.25 per Acre
Table 2
Assigned Special Tax Rates for
Developed Property within Zone B
Land Use
Class
Land Use
Type
Building Square
Footage
Assigned
Special Tax
1 Residential Property N/A $6,367.25 per Acre
2 Non-Residential Property N/A $6,367.25 per Acre
On each July 1, commencing July 1, 2020, 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 shall be
determined as follows:
Zone A
For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped
Property to be classified as Residential Property upon its development within the Final Map area
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in Zone A, the Backup Special Tax for Fiscal Year 2019-20 shall be the rate per Lot calculated
according to the following formula:
Zone A
$42,148 x A
B = ------------------------
L
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 land area applicable to a Condominium shall be computed from the Acreage
of the Lot on which the Condominium is located, with the Acreage 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.
Zone B
For each Assessor’s Parcel of Developed Property classified 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 2019-20 shall be determined by
multiplying $42,148 for Zone A and $7,075 for Zone B by the total Acreage of any such Assessor’s
Parcel. For each Assessor’s Parcel of Developed Property classified as Residential Property or for
each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property in Zone B
within the Final Map area, the Backup Special Tax for Fiscal Year 2019-20 shall be determined by
multiplying $7,075 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 Assessor’s Parcels shall be recalculated to equal the total amount of
Backup Special Tax that would have been generated if such change did not take place.
On each July 1, commencing July 1, 2020, the Backup Special Tax applicable to each Assessor’s
Parcel of Taxable Property shall be increased by two percent (2.00%) of the amount in effect in the
prior Fiscal Year.
C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessor’s 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 Maximum Special Tax for Provisional Property and Undeveloped Property commencing in
Fiscal Year 2019-20 shall be $42,148 per Acre for Zone A and $7,075 per Acre for Zone B.
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On each July 1, commencing July 1, 2020, the Maximum 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 Assessor’s 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 Tax Reduction
Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum
Special Tax (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 the total effective tax rate on Residential
Property, as determined in accordance with the Development Agreement, exceeds the maximum
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, the “CFD Public Facilities
Costs” amount in Section 8 shall be reduced commensurate with any reductions to 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
permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien
which the City shall cause to be recorded.
4. METHOD OF APPORTIONMENT
For each Fiscal Year, commencing Fiscal Year 2019-20, the CFD Administrator shall levy the Special Tax
on all Taxable Property in accordance with the following steps:
Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed
Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax
Requirement;
Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has
been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of
Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property;
Step 3: If additional monies are needed to satisfy the Special Tax Requirement after 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 Maximum
Special Tax for Developed Property;
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Step 4: 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 Provisional Property.
Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against
any Assessor’s Parcel of Residential Property 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 IA2 by more than ten percent (10%) 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) Assessor’s Parcels which are used as
places of worship and are exempt 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 IA2 to less than 13.29 Acres for Zone A or 7.51 Acres for Zone
B. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would
reduce the sum of all Taxable Property in IA2 to less than 13.29 Acres for Zone A or 7.51 Acres for Zone
B, shall be classified as Provisional Property and will continue to be subject to the IA2 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 Assessor’s Parcel is no longer
classified as one of the uses set forth in the first paragraph of Section 5 above 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.
6. APPEALS
Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her
Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later
than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If
following 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:
(i) Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current Fiscal
Year prior to the payment date,
(ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the
extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the landowner’s
Assessor’s Parcel(s) in the amount of the overpayment.
If following such consultation and action by the CFD Administrator the landowner 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
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Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order
to correct the error.
The City Council or designee thereof shall interpret this Amended and Restated Rate and Method of
Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative
to the administration of the Special Tax 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 Tax shall be made by the County in the same manner as ordinary ad
valorem property taxes are collected and the Annual Special Tax 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 City
Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to
the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes.
8. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash
settlement with the City as permitted under Government Code Section 53344. The following
definitions apply to this Section 8:
“CFD Public Facilities Costs” means $11,500,000 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 IA2, 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 Agreement 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 IA2.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously 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 that 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 Assessor’s 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 prepayment 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
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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 t o be
redeemed with the proceeds of such prepaid Special Taxes, unless a shorter 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 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 Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall
be calculated as follows:
Step No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property, determine the Maximum 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.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected
Maximum Special Tax revenue for IA2 assuming all Building Permits have been issued
(build-out) within IA2, excluding any Assessor’s Parcels for which the Special Tax
Obligation has been previously prepaid.
4. 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 Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (expressed as a percentage), if any, on the Outstanding
Bonds to be redeemed at the first available call date (the “Redemption Premium”).
6. Compute the Future Facilities Costs.
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7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined
pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the
“Future Facilities Prepayment Amount”).
8. Compute the amount needed to pay interest on the Bond Redemption Amount from the
first bond interest and/or principal payment date following the current Fiscal Year until the
expected redemption date for the Outstanding Bonds which, depending on the Fiscal 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 IA2, 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 with 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 Fiscal 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
Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is
calculated, reserve funds are below 100% of the reserve requirement after 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 multiplying the quotient computed
pursuant to paragraph 3 by the expected balance in the capitalized int erest 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 paragraphs 12 and 13 (the “Prepayment Amount”).
15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs
4, 5, 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 will be retained in
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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 Parcel for which the Special Tax Obligation is prepaid in full,
once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid,
the City Council shall 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 lien on such
Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax
shall cease.
Notwithstanding 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 1.1 times the
Debt Service on all Outstanding Bonds in each Fiscal Year.
B. 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 that 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 which 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 who desires such partial prepayment shall notify the CFD
Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the
percentage by which the Special Tax Obligation shall be prepaid, and (iii) 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 amount required for the partial prepayment of the Special Tax Obligation
for an Assessor’s Parcel within sixty (60) 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 Section 8.A., and (ii) indicate in the records of CFD No. 16-I for IA2
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 Maximum Special Taxes less the Administrative Expense Requirement that may be levied on
Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt
Service on all Outstanding Bonds in each Fiscal Year.
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9. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any
event not after Fiscal Year 2059-60.
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EXHIBIT A
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EXHIBIT B
CITY OF CHULA VISTA AND CFD NO. 16-I CERTIFICATE
1. Pursuant to Section 3F of the Amended and Restated 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 to a reduction in the Special Tax for
Developed Property, Undeveloped Property, and/or Provisional Property:
(a) The information in the RMA relating to the Special Tax for Developed Property,
Undeveloped Property, and Provisional Property shall be modified as follows:
[insert Table 1 and/or 2 showing revised Assigned Special Tax rates for Developed
Property, insert revised Backup Special Tax rates for Developed Property by Zone, and insert
change to Maximum Special Tax rates for Undeveloped Property and Provisional Property by Zone]
(b) The CFD Public Facilities Costs in Section 8 shall be changed to $____________.
2. Special Tax rates for Taxable Property may only be modified prior to the issuance of Bonds.
3. 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 undersigned 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:
CFD Administrator
Date:
COMMUNITY FACILITIES DISTRICT NO. 16-I
OF THE CITY OF CHULA VISTA
By:
Date:
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