ITEM #: 3.
DATE: 11/17/2025
AI #:2911
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COMMUNITY FACILITIES DISTRICT REPORT
| SUBJECT: |
ADOPT ISSUANCE OF BONDS FOR MONTECITO #4
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| STAFF PRESENTER(S): |
Kevin Custer, Deputy Finance Director |
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| SUMMARY |
| Adoption of Resolution EMRCFD RES 2025-171 will authorize the sale, issuance, and delivery of special assessment revenue bonds of the Estrella Mountain Ranch Community Facilities District (City of Goodyear, Arizona) Montecito Assessment District No. 4, for an amount not to exceed $10,668,000. |
| Recommendation |
| ADOPT RESOLUTION EMRCFD RES 2025-171, AUTHORIZING THE ISSUANCE OF ITS MONTECITO ASSESSMENT DISTRICT NO. 4 SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2025, IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $10,668,000; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND REGISTRAR, TRANSFER AGENT, PAYING AGENT AND DEPOSITORY CONTRACT, A PURCHASE CONTRACT RELATING TO THE BONDS, A CONTINUING DISCLOSURE UNDERTAKING, AND CERTAIN OTHER DOCUMENTS SECURING THE PAYMENT OF OR RELATING TO THE BONDS; RATIFYING AND APPROVING A PRELIMINARY OFFICIAL STATEMENT RELATING TO THE BONDS; APPROVING A FINAL OFFICIAL STATEMENT RELATING TO THE BONDS; AWARDING THE BONDS TO THE PURCHASER THEREOF; APPOINTING A REGISTRAR, TRANSFER AGENT AND PAYING AGENT AND DEPOSITORY FOR THE BONDS; TAKING OTHER ACTIONS SECURING THE PAYMENT OF AND RELATING TO THE BONDS; AND RATIFYING ALL ACTIONS TAKEN OR TO BE TAKEN TO FURTHER THIS RESOLUTION. (Kevin Custer, Deputy Finance Director) |
| 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 are required to purchase assessed property subject to a foreclosure action. Pursuant to prior Board action, assessments on individual lots will not exceed $21,000. |
| BACKGROUND AND PREVIOUS ACTIONS |
The Estrella Mountain Ranch Community Facilities District (CFD) and Estrella North, LLC, as the Owner, with TPG AG EHC III (LEN) Multi State 5, LLC; Lennar Arizona, LLC; and Richmond American Homes of Arizona, Inc., as Interested Parties, of the property within the District’s Montecito Assessment District No. 4, have executed and delivered to the District, a Waiver and Development Agreement 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 (as defined herein) 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 October 6, 2025 on the feasibility report relating to the District; (ii) adopted EMRCFD RES 2025-168, 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 2025-169, ordering the work related to the Project; and (iv) adopted EMRCFD RES 2025-170, 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 Registrar/Depository Contract, Bond Purchase Agreement, Preliminary Official Statement, and Continuing Disclosure Undertaking, included here as Attachments B, C, D, and E, and has determined it is proper for the Board to adopt EMRCFD RES 2025-171, included here as Attachment A, authorizing the sale, issuance, and delivery of special assessment revenue bonds of the Estrella Mountain Ranch Community Facilities District (City of Goodyear, Arizona) Montecito Assessment District No. 4, in an amount not to exceed $10,668,000. |
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