EMRCFD Montecito #3 Assessment District Feasibility Report Approval

ADOPT RESOLUTION EMRCFD RES 2021-141, APPROVING THE FEASIBILITY REPORT RELATING TO THE ACQUISITION AND FINANCING OF CERTAIN IMPROVEMENTS BENEFITTING THE DISTRICT; DECLARING ITS INTENTION TO ACQUIRE CERTAIN IMPROVEMENTS DESCRIBED IN THE FEASIBILITY REPORT; FORMING MONTECITO ASSESSMENT DISTRICT NO. 3; 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)

The feasibility report outlines the issuance of revenue bonds in the principal amount of $598,000 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 73 single family detached lots are requested to be assessed approximately $8,191.78.

NNP III – Estrella Mountain Ranch, LLC (“Developer”), the sole landowner of the property, submitted a request to form Montecito Assessment District No. 3.  The proposed district will create 73 individual assessments of $8,191.78 to acquire Calistoga Drive and associated engineering, design, survey, review fees, construction permits, testing, grading, installation of wet utilities, dry utilities, storm drain, curb and gutter, asphalt pavement, landscaping, and streetlights from approximately 184th Lane west to 186th Avenue. 

Prior to this action, the District Board conducted a public hearing on the feasibility report relating to the Assessment District.  The Developer has executed and delivered to the District, a Waiver and Development Agreement waiving certain notice and procedural requirements.  The agreement also acknowledges that the District will levy an assessment in accordance with Title 48 of Arizona Revised Statutes.

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.