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ITEM #: 3.
DATE: 12/05/2022
AI #:1219
 
COMMUNITY FACILITIES DISTRICT REPORT
 
SUBJECT: LUCERO #2 ASSESSMENT DISTRICT FEASIBILITY REPORT APPROVAL
 
STAFF PRESENTER(S): Jared Askelson, Deputy Finance Director

SUMMARY

Lucero #2 Assessment District Feasibility report approval.

Recommendation

ADOPT RESOLUTION EMRCFD RES 2022-151, APPROVING THE FEASIBILITY REPORT RELATING TO THE ACQUISITION AND FINANCING OF CERTAIN IMPROVEMENTS BENEFITING THE DISTRICT; DECLARING ITS INTENTION TO ACQUIRE CERTAIN IMPROVEMENTS DESCRIBED IN THE FEASIBILITY REPORT; FORMING LUCERO ASSESSMENT DISTRICT NO. 2; DETERMINING THAT SPECIAL ASSESSMENT REVENUE BONDS WILL BE ISSUED TO FINANCE THE COSTS AND EXPENSES THEREOF AND DECLARING THE IMPROVEMENTS TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT AND THAT THE COSTS OF SAID IMPROVEMENTS WILL BE ASSESSED UPON THE ASSESSMENT DISTRICT; PROVIDING THAT THE PROPOSED IMPROVEMENTS WILL BE PERFORMED AND DISTRICT SPECIAL ASSESSMENT REVENUE BONDS ISSUED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 6, ARIZONA REVISED STATUTES, AND ALL AMENDMENTS THERETO; AND RATIFYING ALL PRIOR ACTS INCLUDING THE EXECUTION AND DELIVERY OF A WAIVER AND DEVELOPMENT AGREEMENT. (Jared Askelson, Deputy Finance Director)

FISCAL IMPACT

The feasibility report outlines the issuance of revenue bonds in the principal amount of $4,429,000 associated with this special assessment. These bonds will acquire the infrastructure, pay appropriate capitalized interest, establish a reserve fund, and pay for costs of issuance of the bonds.  Property owners within the Assessment District will pay the annual debt service payments for the special assessment revenue bonds. The intention is to have the annual debt service payment collected by Maricopa County Treasurer by adding the amount due from each property owner on their annual property tax bill. The 278 single family detached lots are requested to be assessed approximately $16,000.

BACKGROUND AND PREVIOUS ACTIONS

Estrella North, LLC (“Developer”), the majority landowner of the property, submitted a request to form Lucero Assessment District No. 2. The proposed district will create 278 individual assessments of approximately $16,000 to acquire Hillside Drive, 16 inch and 12 inch Water Mains, Lost Lift Station and Parallel Force Main, and Zone 2 Water System Upgrades. Following this request, the District initiated the preparation of the feasibility report related to the Assessment District. The report includes a description of the infrastructure, an estimate of the costs to acquire the infrastructure, an estimated schedule to complete the infrastructure, a map of the area, and a plan for financing. In accordance with state statutes, the District Clerk has published a notice of public hearing on the feasibility report.

STAFF ANALYSIS

This resolution of intention is required by statute as the first District Board action in formation of the Assessment District. This resolution also approves the feasibility report and declares the District’s intention to issue the special assessment revenue bonds. District staff has reviewed the feasibility report and related materials and found this resolution is in compliance with state law, the existing development agreement between the City, the District and the Developer and the City’s CFD Guidelines.

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