AgdaPkt 2011-03-21 - Laserfiche WebLink

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8.A Page 1 '� REPORT �� To the Honorable Mayor and City Council From the Cit Mana er March 21, 2011 SUBJECT Changes to One Marina Community Facilitates District (CFD) RECOMMENDATIONS 1. Approve by resolution, the City's consideration of amending certain provisions relating to the One Marina CFD, 2. Approve by resolution, the call for a special election within the CFD regarding the proposed amendments, and 3. Approve by resolution, the results of the special election and the order of changes to the proceedings regarding the CFD, and ce�tain matters with respect thereto. BACKGROUND On September 13, 2010 the Council held a public hearing and subsequently adopted a resolution to create the One Marina CFD, deemed it necessary to sell bonds, opened and tabulated the ballot submitted by the single property owner, and adopted a resolution declaring an affirmative election result and adopting an ordinance levying special taxes within the District. On December 6, 2010 the Council approved the basic legal documents associated with the sale of bonds and authorized the City Manager or the Finance Director to sign a bond purchase contract to effect the sale of bonds subject to certain limitations, including a limit on the amount of bonds sold and the interest cost associated with the bonds. In the intervening period municipal bond interest rates rose substantially making it unlikely, in the opinion of Piper Jaffray, the underwriter far the proposed bonds, that they could be marketed at the previously approved maximum true interest cost of 7.25%. Moreover, R.C. Peninsula Park, the project developer and property owner, is requesting the following changes to the CFD: • Amend rate and method of apportionment (special tax formula). • Decrease the number of bonds sales from three to one, decrease the authorized amount of bonds from $17 million to $7.5 million. • Remove school fees and impact fees from the list of authorized facilities. • Remove the hotel and related commercial property from the CFD. • Approve corresponding changes to the Acquisition Agreement between the City and the developer. Additionally, the underwriter recommends that the Council increase the limit on the true I interest cost from 7.25% to 9.00%. The foregoing changes have the effect of reducing the maximum special taxes on developed residential property from a range of $2,711 —$5,422 to a range of $1,540 — $3,080. To maintain consistency with the reduction in the special tax, the Fiscal Agent Agreement will also be modified to reflect a lower threshold of a$10,000 trigger instead of a$15,000 trigger for foreclosure.