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HomeMy WebLinkAbout90-030 CC ResolutionRESOLUTION 90-30 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA REGARDING ITS INTENTION TO ASSIST WITH THE FINANCING OF ROAD AND TRAFFIC AND PARK FACILITIES OF REGIONAL BENEFIT WITHIN THE CITY BY MAKING CERTAIN SALES TAX REVENUES AVAILABLE FOR THE PAYMENT OF DEBT SERVICE ON BONDS OF COMMUNITY FACILITIES DISTRICT NO. 88- 12 (YNEZ CORRIDOR) OF THE COUNTY OF RIVERSIDE WHICH MAY BE ISSUED TO FINANCE THE CONSTRUCTION OF SUCH FACILITIES WHEREAS, The County of Riverside (the "County") prior to incorporation, has conducted proceedings pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with § 53311) of Division 2 of Title 5 of the Government Code (the "Mello-Roos Act"), for the establishment of Community Facilities District No. 88-12 (Ynez Corridor) of the County of Riverside, State of California (the 1 "District"), the authorization of a bonded indebtedness for the District in an aggregate principal amount not to exceed $60,000,000, and the levy of special taxes on parcels of taxable property therein to pay the principal of and interest on bonds which may be issued to represent such bonded indebtedness and to finance the design and construction of certain public facilities; and WHEREAS, all proceedings pursuant to the Mello-Roos Act with respect to the establishment of the District, the authorization of the bonded indebtedness therefore and the levy of special taxes on taxable property therein to pay the principal of and interest on the bonds thereof have been completed except the elections pursuant to Sections 53326 and 53351 of the Government Code; and WHEREAS, among the public facilities which are proposed to be financed with the proceeds of the bonds of the District are the construction and widening of Ynez Road to a six (6) lane width from the north property line of the property where the Advanced Cardiovascular Systems building is located southerly to its intersection with Rancho California Road, the construction of the Apricot Street over-crossing of Interstate Highway 15, the addition of loop- ramps at the entrances of Rancho California Road and Winchester Road to Interstate Highway 15, and the acquisition of land for the future development of regional and local parks, and the acquisition of all or a portion of Solano Way, a portion of Ynez Road at its intersection with Solano Way and all or a portion of certain water, sewer, and storm drain improvements located therein, all of which will be of general benefit to residents throughout the City of Temecula (the "City") and the surrounding area and which facilities are not private projects but those required by the City and the County (the "Public Facilities"); and WHEREAS, the territory within the District is located entirely within the City and will be developed for commercial, industrial and residential uses which will provide significant sales and use tax revenues to the City; and Resos 90-30 WHEREAS, prior to the incorporation, the Board of Supervisors of the County, as an inducement to the owners of the property within the boundaries of the District to proceed with the financing of the construction of the Public Facilities and the development of their property to provide such sales and use tax revenues agreed with the owners of property within the District to annually appropriate and make available for the payment of principal of and interest on the bonds of the District a portion of the sales and use tax revenues received by the County from businesses and industries located within the District; and WHEREAS, now that the City has become incorporated, the County will not receive any sales and use tax revenues from businesses and industries located within the District, and all such revenues will be received by the City; and WHEREAS, the owners of the property within the District have requested of the City that the City enter into an agreement with them whereby the City will make sales and use tax revenues received by the City from businesses and industries located within the District available for the payment of the principal of and interest on the bonds of the District which may be issued and sold to finance the construction and acquisition of the Public Facilities; and WHEREAS, in order to induce such owners and their successors and assigns (hereafter the "owners of property") to proceed with the elections to be conducted by the County authorizing bonded indebtedness for the District and the levy of special taxes on taxable property therein to pay the principal of and interest on bonds which may be issued and sold to represent such bonded indebtedness and to finance the Public Facilities, it is desirable that the City enter into such an agreement with the County and with owners of the property within the District; and WHEREAS, the City also requires certain agreements from the County and the owners of property within the District in order to make such sales and use tax revenues available for the Public Facilities while assuring that funds will be available for other road projects of benefit to City residents and the City may determine not to finalize an agreement which does not contain corresponding agreements of the County and the owners of property as set out in this Resolution; and WHEREAS, since it is not possible for the City, the County and such owners to negotiate the final terms and conditions of such an agreement and to have such an agreement approved, authorized and executed on behalf of the City and the County an all such owners prior to the last date upon which such elections can be held pursuant to Section 53326 of the Government Code, it is necessary and desirable that the City Council adopt a resolution with regard to its intention to enter into such an agreement and to make a portion of the sales and use tax revenues received by the City from businesses and industries located within the District available to the County for the payment of the principal of and interest on the bonds of the District which may be issued and sold to finance the Public Facilities and specifying the general terms and conditions of such an agreement; and Resos 90-30 WHEREAS, the City may request that the County limit the amount of bonds to be authorized in such elections and issued to that necessary to fund the Public Facilities and expenses incidental thereto; and WHEREAS, since additional road and traffic facilities including, but not limited to; the Public Facilities also are of benefit to property owners and residents of the City, it is also equitable and desirable that the City Council proceed with the establishment of an impact fee program, including but not limited to, the formation of a Bridge and Major Thoroughfare Construction Fee District(s) pursuant to Section 66484 of the Government Code, including the property within the District, and levy a fee as a condition to the issuance of building permits to provide another source of revenue to finance the construction and acquisition of, or to reimburse the District for such roads, bridges and traffic facilities, throughout the City; and WHEREAS, the owners of property within the District will be required to pay such fees upon issuance of building permits and notwithstanding any prior agreement with the County, to waive their rights to protest to the formation of such an impact fee district and the levy and collection of a fee therein (reserving their rights to object to the method of allocation of costs or fee apportionment); and WHEREAS, as a portion of the Public Facilities to be financed are of local rather than regional benefit, the owners of property within the District will be required to reimburse the City, for the cost of such Public Facilities they otherwise would be required to build with their own funds; and WHEREAS, it is anticipated that the costs of utility relocation for construction of the Public Facilities will be borne by the affected utilities, but, in the event all or a portion of such costs are not borne by the utilities, the City and owners of property shall divide such costs; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF TEMECULA AS FOLLOWS: Section 1. Recitals. The recitals set forth above are true and correct. Section 2. Agreement by City. It is the intention of the City Council to negotiate the terms and conditions of and to approve and authorize the execution and delivery on behalf of the City of an agreement to be entered into between the City, the County and all owners of property within the District (the "Agreement") which, with regard to sales and use tax revenues, will in general provide as follows: (a) When and if bonds of the District are authorized and issued by the County in an amount sufficient to finance the Public Facilities (plus incidental expenses), the City Council will develop a system to annually appropriate and made a available for the payment of the principal of and interest on such bonds an amount equal to 25 percent of the sales and use tax revenues received for Resos 90-30 Co) (c) (d) (e) each fiscal year by the City from business and industries located within the District. The City Council shall appropriate such sales and use tax revenues each year of the term of the bonds, commencing with the first year in which special taxes are levied on parcels of taxable property in the District for the payment of interest or principal on the bonds. Notwithstanding the foregoing, the City Council has the absolute authority in any fiscal year to determine not to make such an appropriation and the failure or refusal of the City to make such an appropriation shall not be determined to be a breach of any agreement. No part of the sales and use tax revenues received by the City in any fiscal year shall be appropriated, made available or used for the payment of principal of and interest on the bonds of the District which are issued and sold to finance any public facilities other than the Public Facilities. For each fiscal year when sales and use tax revenues have been appropriated by the City Council, such revenues shall be allocated for the payment of special taxes as follows: (1) Up to 25 percent of the sales and use tax revenues received during each fiscal year with respect to each parcel of developed property (a parcel with a commercial or industrial business located thereon and with curb and gutter adjacent thereto) shall be allocated proportionately to the payment of the special taxes levied on all parcels of developed property for that fiscal year. To the extend that the amount of the special taxes levied on such parcels exceeds the amount of sales and use tax revenues available to pay the special taxes, the property owners shall pay the additional amount of any special taxes owing (the "shortfall"). (2) In the event the amount of the sales and use tax revenues available to be appropriated in any fiscal year with respect to parcels of developed property is in excess of the special taxes levied on such parcels for that fiscal year, that excess shall be allocated proportionately to pay or reduce all or a portion of the special taxes levied on parcels of undeveloped property in the District. To the extent that the amount of the special taxes exceed the amount of sales and use tax revenues available to pay the special taxes, the property owner shall pay such amount. (3) It is contemplated that in the later years of the agreement the 25 percent of sales tax revenues appropriated annually for the payment of principal and interest on the bonds of the District may exceed the amount of the special Re~o~ 90-30 taxes levied on parcels of both developed and undeveloped property. In the event of such an excess in any future years the City shall appropriate and make available such excess first to reimburse each owner developed property pro rata for the shortfall pursuant to sub section 1 hereof, and then to the extent any excess remains to reimburse each owner of undeveloped property or developed property pro rata for special taxes paid pursuant to Subsection 2. Such reimbursement shall be made without interest and shall be credited first to the earliest fiscal year in which special taxes were levied. In the event that there is no such excess in any fiscal year, the City shall be under no obligation to make such reimbursement. Notwithstanding the foregoing, the City Council shall have the absolute authority in any fiscal year to determine whether of not to make this appropriation and has no obligation to make any contribution or reimbursement from any other funds of the City. Section 3. Traffic Impact Fees. The City Council intends to initiate, conduct and complete proceedings to form a district and levy and collect traffic impact fees, as allowed by law, including, but not limited to those authorized pursuant to Section 66484 of the Government Code, to be paid by the owners of property within the area of benefit as a condition to the issuance of building permits to finance the design and construction (or reimbursement to the District therefore) of road, bridges and other traffic facilities which are of benefit throughout the City (the "Traffic Impact Fee") specifically including, but not limited to, the cost of construction of the fifth and sixth lanes of Ynez Road. (a) The Agreement shall provide that the owners of property within the District, notwithstanding any prior agreement with the County, shall pay such a Traffic Impact Fee as determined by the City upon the issuance of building permits. Co) The owners of property within the District also shall agree to consent to the formation of a district for, and the levy and collection of, a Traffic Impact Fee therein, and shall waive their rights to protest such formation, levy or collection, but not to object to the method of allocation of costs or fee apportionment. (c) The City Council may but in no manner is required to elect in any fiscal year, and the agreement provided for in Section 2 hereof shall so provide, to pay all or any portion of the special taxes levied on parcels of taxable property in the District for the payment of the principal of and interest on the bonds thereof, which would otherwise be paid with sales and use tax revenues appropriated by the City Council, with revenues of the Traffic Impact Fees or other available funds, but the general revenues or full faith and credit of the City shall not be pledged for such payment. Section 4. Facilities to be Financed. The Agreement shall provide that the facilities which shall be financed with the proceeds of any bonds of the District authorized, issued and Resos 90-30 sold shall include the following facilities which are the Public Facilities, and any and all costs incidental thereto, but in no event shall the City be obligated or required in any way to contribute sales and use tax revenues for the payment of principal and interest on bonds of the District issued and sold to finance other facilities. (a) Construction of the Apricot Street over-crossing of Interstate Highway 15 from Ynez Road to Jefferson Avenue, including the acquisition of the right-of- way required on both sides of Interstate Highway 15, at an estimated cost of $5,000,000; The widening of Ynez Road to a six (6) lane width with turning pockets at various intersections commencing from the north property line of the property upon which the Advanced Cardiovascular System plant is located southerly to its intersection with Rancho California Road, including the acquisition of right- of-way, utility relocations, and utility crossings (i.e., storm sewers, sanitary sewers, water mains, gas mains, electrical facilities, traffic signal facilities relocation, telephone and cable television facilities, etc), at an estimated cost of $3,000,000; (c) The construction of the freeway loop-ramp at the southeast quadrant of the entrance of Rancho California Road to Interstate Highway 15, including the acquisition of the required right-of-way, at an estimated cost of $1,000,000; (d) The construction of the freeway loop-ramp at the southeast quadrant of the entrance of Winchester Road to Interstate Highway 15, including the acquisition of the required right-of-way, at an estimated cost of $1,000,000; (e) The acquisition of park land and/or the construction of facilities, buildings, and equipment for local and regional park and recreational purposes, at an estimated cost of $2,000,000; and (f) The acquisition of all or a portion of Solano Way and a portion of Ynez Road at their intersection and certain water and sewer system and storm drainage facilities in Solano Way and Ynez Road near said intersection, including the acquisition of right-of-way therefor, which have been constructed to support the auto park located at such intersection. Section 5. Sale of Bonds. With respect to the bonds of the District to be issued and sold by the County, the Agreement shall provide as follows: (a) The bonds shall be sold in two or more; the first of which shall be sold as soon as possible in an aggregate principal amount to finance the design, construction and/or acquisition of the Public Facilities described in Section 3(b) and (f) hereof and any and all costs incidental thereto, and the second or later series of which shall be sold as soon as possible after Cal Trans permits have Resos 90-30 Co) (c) (d) (e) Section 6. (a) been obtained for the Public Facilities described in Section 3(a), (c), (d) and (e), which series shall be in an aggregate principal amount sufficient to finance the design acquisition and/or construction of such Public Facilities and any costs incidental thereto; The aggregate principal amount of the any series of the bonds issued and sold to finance the Public Facilities shall include a reserve fund in such amount as is reasonably required, issuance costs, underwriter's discount, and capitalized interest for not more than eighteen months as well as the costs of administration of the District and of the Agreement contemplated by this Resolution; The aggregate principal amount of the any series of the bonds issued and sold to finance the Public Facilities shall also include an amount sufficient to reimburse the owners of property within the District for any amounts which they have advanced to the County for the payment of costs and expenses incurred by the County in connection with the establishment of the District and the issuance and sale of that series of bonds; The aggregate principal amount of the any series of the bonds to be issued and sold to finance the Public Facilities shall be determined by the County in consultation with its bond counsel and financial consultant, the underwriter, the owners of property within the District and the City; and Any series of the bonds to be issued and sold to finance the Public Facilities shall contain a provision which will permit their call and redemption at the earliest practical date, as determined by the County in consultation with its bond counsel and financial consultant and the underwriter. Conditions Precedent. The City shall not be obligated to enter into an Agreement with the County and the owners of property within the District as contemplated in this Resolution, unless two-thirds of the votes cast in the elections within and for the District on the proposition of the District incurring a bonded indebtedness and the proposition of the levy of special taxes on parcels of taxable property therein to pay the principal of and interest on the bonds of the District which may be issued and sold to represent such bonded indebtedness and to finance the design and construction of the Public Facilities are in favor of such propositions, and the County is hereby authorized to provide for the issuance and sale of the bonds of the District in an amount sufficient to finance the design and construction of the Traffic Facilities and to levy special taxes on all parcels of taxable property within the District in an aggregate amount sufficient to pay the principal of an interest on such bonds of the District. Rems 90-30 Co) Notwithstanding the foregoing or any other provisions of this Resolution in the event the County or owners of property fail or refuse to consent to the agreements required in this Resolution or other consideration acceptable to the City, the City shall not be obligated or required to enter into any agreement for the contribution of sales and use tax revenues. Section 7. Agreement and Cooperation of Owners. In addition to the agreements set out in Section 2 and 3 hereof, the Agreement contemplated by this Resolution shall further provide that: (a) The owners of property in the District agree that they will execute and deposit with City, as an attachment to the Agreement contemplated by this Resolution, an irrevocable offer to dedicate the land necessary to widen Ynez Road as set out in Section 3 hereof; and Co) The owners of undeveloped property further agree that the issuance of building permits for their projects with frontage on Ynez Road or Solano Way, or the intersection of Solano Way and Ynez Road shall be conditioned on repayment to City of the costs of construction of two lanes of Ynez Road and two lanes of Solano Way plus curb, gutter, sidewalk and parkway and two- thirds of the cost of any utility relocation not borne by the utility. The precise allocation of such repayment shall be determined pursuant to a formula to be developed by the City Engineer. In addition, the City may place a contingent assessment for such costs on the undeveloped property. Section 8. Property Acquisition. The Agreement contemplated by this Resolution shall provide that to the extent property for the Public Facilities has not been required to be dedicated by and therefore must be acquired from the owners of property within the District, the date of valuation for such property shall be the date of adoption of this Resolution. Section 9. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 20th day of March, 1990. Ron Parks, Mayor ATTEST: Ju~. Greek, Deputy City~~erk j [SEAL] Resos 90-30 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF TEMECULA ) SS I, June S. Greek, Deputy City Clerk of the City of Temecula, HEREBY CERTIFY that the foregoing Resolution 90-30 was duly adopted by the City Council of the City of Temecula at a regular meeting thereof, held on the 20th day of March, 1990 by the following vote of the Council: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Jetm. g~. Greek, Deputy Ci~ Clerk Resos 90-30