| ITEM #: 3. DATE: 12/12/2022 AI #:1244 |
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COMMUNITY FACILITIES DISTRICT REPORT
| SUBJECT: | ADOPTING AND ORDERING COLLECTION OF THE SPECIAL ASSESSMENT FOR LUCERO #2 |
| STAFF PRESENTER(S): | Jared Askelson, Deputy Finance Director |
SUMMARY
The District Engineer has determined the public infrastructure benefiting the assessed residential lots is complete. No objections to the assessment or to the Project (as defined in EMRCFD RES 2022-154) have been submitted to the Estrella Mountain Ranch Community Facilities District. The Board of Directors of the District will hold a public hearing regarding the assessment. Following the public hearing, the Board will consider resolution EMRCFD RES 2022-154, which is the final step in the procedures necessary to form the Lucero Assessment District No. 2 and to provide for assessments to pay the debt service on special assessment revenue bonds.
Recommendation
FISCAL IMPACT
The special assessment revenue bonds, if sold, are secured solely by the installment payments to be paid by owners of assessed property within the Assessment District. In the event of non-payment, the District may foreclose on assessed property and apply the foreclosure proceeds to repayment of the special assessment revenue bonds. Neither the City of Goodyear nor the District is required to purchase assessed property subject to a foreclosure action. Pursuant to prior Board action, assessments on individual lots will not exceed $16,000.
BACKGROUND AND PREVIOUS ACTIONS
The Estrella Mountain Ranch Community Facilities District (the “District”), Estrella North LLC, a Delaware limited liability company (the “Developer”) and Taylor Morrison/Arizona, Inc., an Arizona corporation, as the sole landowners of the property within the Lucero Assessment District No. 2 (the “Assessment District”), have heretofore executed and delivered to the District, a Waiver and Development Agreement pertaining to the Assessment District wherein the parties thereto, including any party executing an Interested Party Consent (as defined therein), have: (i) waived any and all requirements for notice and time for protests and objections relating to, among other things, the Project and the extent of the Assessment District; (ii) acknowledged that the District shall levy an assessment pursuant to Title 48, Arizona Revised Statutes, as amended; and (iii) waived certain procedural requirements.
The Developer has requested the District issue special assessment revenue bonds to finance the acquisition of the Project comprising various public infrastructure improvements including engineering, design, survey, review fees, construction permits, testing, grading, installation of wet utilities, dry utilities, storm drain, curb and gutter, asphalt pavement, landscaping and street lights within the Assessment District.
The Board of Directors of the District (the “Board”) previously (i) conducted a public hearing on the feasibility report relating to the District; (ii) adopted EMRCFD RES 2022-151, accepting the feasibility report, ordering the acquisition of public infrastructure and public infrastructure purposes, and indicating its intent to form the Assessment District; (iii) adopted EMRCFD RES 2022-152, ordering the work related to the Project; and (iv) adopted EMRCFD RES 2022-153, approving the assessment and form of assessment diagram based upon the estimated costs, and levying the assessment.
The District Engineer completed a review of the work related to the public infrastructure and public infrastructure purposes to be financed by the special assessment revenue bonds and determined (i) the work is complete for the purposes of confirming and approving the assessment amounts; (ii) the work benefits the residential lots subject to the assessment; and (iii) the amount of the assessment for each lot is in proportion to the benefit received. All owners of land in the Assessment District received notice of the public hearing regarding the confirmation and approval of the assessment. No land owners objected to the formation of the Assessment District, the work or the assessment.
The Developer has requested the District issue special assessment revenue bonds to finance the acquisition of the Project comprising various public infrastructure improvements including engineering, design, survey, review fees, construction permits, testing, grading, installation of wet utilities, dry utilities, storm drain, curb and gutter, asphalt pavement, landscaping and street lights within the Assessment District.
The Board of Directors of the District (the “Board”) previously (i) conducted a public hearing on the feasibility report relating to the District; (ii) adopted EMRCFD RES 2022-151, accepting the feasibility report, ordering the acquisition of public infrastructure and public infrastructure purposes, and indicating its intent to form the Assessment District; (iii) adopted EMRCFD RES 2022-152, ordering the work related to the Project; and (iv) adopted EMRCFD RES 2022-153, approving the assessment and form of assessment diagram based upon the estimated costs, and levying the assessment.
The District Engineer completed a review of the work related to the public infrastructure and public infrastructure purposes to be financed by the special assessment revenue bonds and determined (i) the work is complete for the purposes of confirming and approving the assessment amounts; (ii) the work benefits the residential lots subject to the assessment; and (iii) the amount of the assessment for each lot is in proportion to the benefit received. All owners of land in the Assessment District received notice of the public hearing regarding the confirmation and approval of the assessment. No land owners objected to the formation of the Assessment District, the work or the assessment.
STAFF ANALYSIS
District staff has reviewed the District Engineer’s certificate regarding the work and has determined that, following the hearing on the assessment, it is proper for the Board to adopt EMRCFD RES 2022-154, completing the final step in the procedures necessary to form the Assessment District and to provide for assessments to pay the debt service on special assessment revenue bonds.