ITEM #: 4.
DATE: 11/17/2025
AI #:2912
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COMMUNITY FACILITIES DISTRICT REPORT
| SUBJECT: |
ADOPTING AND ORDERING COLLECTION OF THE SPECIAL ASSESSMENT FOR MONTECITO #4
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| STAFF PRESENTER(S): |
Kevin Custer, Deputy Finance Director |
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| 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's Feasibility Report, as defined in EMRCFD RES 2025-168, have been submitted to the District. The Board will hold a public hearing regarding the assessment. Following the public hearing, the Board will consider resolution EMRCFD RES 2025-172, which is the final step in the procedures necessary to form the Montecito No. 4 Assessment District and to provide for assessments to pay the debt service on special assessment revenue bonds. |
| Recommendation |
| ADOPT RESOLUTION EMRCFD RES 2025-172, APPROVING THE ASSESSMENT AND THE PROCEEDINGS HERETOFORE HAD AND TAKEN FOR THE ESTRELLA MOUNTAIN RANCH COMMUNITY FACILITIES DISTRICT (CITY OF GOODYEAR, ARIZONA) MONTECITO ASSESSMENT DISTRICT NO. 4; DETERMINING THE WORK HAS BEEN COMPLETED IN ACCORDANCE WITH THE PLANS AND SPECIFICATIONS; AND ORDERING THE COLLECTION OF THE AMOUNT ASSESSED. (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 District Engineer’s Certificate, included here as Attachment B, regarding the work and has determined that, following the hearing on the assessment, it is proper for the Board to adopt EMRCFD RES 2025-172, included here as Attachment A, 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. |
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