Res00 13889 - Laserfiche WebLink

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Section 7. Prepayment of Special Taxes Prepayment Prior to the Initial Sale of Bonds. Prior to the first sale of CFD bonds secured by the Special Taxes, the owner of each Building Parcel shall have the option to prepay future Special Taxes to be levied against such Building Parcel with a single cash payment. The amount of such optional cash payment shall be determined as follows: Step 1 Prior to the first sale of CFD bonds, the total number of Commercial Square Feet allocable to all Building Parcels in the CFD shall be determined as of the applicable Classification Date. Step 2 The maximum approved bonded indebtedness of the CFD as specified in the City's resolution expressing its intention to form the CFD adopted on March 13, 2000 shall be determined. From such amount shall be deducted the following bond financing costs: the projected amount to be deposited to bond debt service reserve funds, interest projected to be capitalized from the proceeds of bonds, and any projected underwriter's discount and bond insurance premiums, all as identified in the report caused to be prepared by the City Manager in connection with the formation of the CFD as required under Sections 53321.5 and 53325 of the Act. All other budgeted costs of creating the CFD and issuing bonds approved by the City Council shall be included as project costs. Step 3 The amount determined in Step 2 above shall be divided by the Commercial Square Feet determined in Step 1 above. Step 4 The quotient resulting from Step 3 above shall, for each Building Parcel, be multiplied by the number Commercial Square Feet allocable to each such Building Parcel. The product of such multiplication shall be the optional cash payment amount assigned to each such Building Parcel. Notice shall be given by mail to each owner of Building Parcels within the CFD of a 10 -day period prior to the initial sale of bonds within which cash payments may be made. Only cash payments in whole may be accepted in lieu of the payment of annual Special Taxes. Parcels for which the prepayment of Special Taxes in whole has been made shall be reclassified as Prepaid Parcels and shall no longer be subject to the levy of Special Taxes. Prepayment Subsequent to the Initial Sale of Bonds. The owner of any Building Parcel may prepay the Special Taxes to be levied against such Parcel through the term to maturity of outstanding CFD bonds and authorized but unissued CFD bonds. Special Taxes may not be prepaid in part. Optional prepayment amounts for each Building Parcel subsequent to the first sale of CFD bonds shall be determined annually for each Fiscal Year at the same time annual Special Taxes are determined as follows. Step 1 The total amount of unpaid CFD bond principal outstanding at the beginning of each Fiscal Year plus authorized and unissued CFD bond principal shall be determined, from which amount shall be subtracted any principal coming due in Adoptlon Draft 4/24/00 C-8