City News

Press Enter to show all options, press Tab go to next option
Print
The following is a list of Citywide government news stories. Please use the drop-down menus to filter by category or department.

NOTICE OF PUBLIC HEARING REGARDING ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICT CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH)

Post Date:03/26/2019 4:26 PM

Notice is hereby given that on February 19, 2019, the City Council (the “City Council”) of the City of San Luis Obispo (the “City”) adopted a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes” (the “Resolution”). Pursuant to Section 53322 of the Mello-Roos Community Facilities Act of 1982, the City Council hereby gives notice as follows:

  1. The text of the Resolution is as follows:

    WHEREAS, the City Council (the “City Council”) of the City of San Luis Obispo (the “City”) has received a written petition (the “Petition”) from MI San Luis Ranch, LLC, a Delaware limited liability company (the “Landowner”), requesting the institution of proceedings for the establishment of a community facilities district (the “Community Facilities District”), describing the boundaries of the territory that is proposed for inclusion in the Community Facilities District and specifying the types of facilities to be financed by the Community Facilities District;

    WHEREAS, the Landowner has represented and warranted to the City Council that the Landowner is the owner of 100% of the territory proposed to be included within the Community Facilities District and not proposed to be exempt from the special tax and that there are no registered voters residing in the territory proposed to be included within the Community Facilities District;

    WHEREAS, under the Mello-Roos Community Facilities Act of 1982 (the “Act”), the City Council is authorized to establish the Community Facilities District;

    WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district;

    WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest, under all the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 53321 of the Act and in the resolution of formation to establish a community facilities district pursuant to Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds;

    WHEREAS, the City and the Landowner intend to enter into a Deposit and Reimbursement Agreement, dated as of February 1, 2019 (the “Deposit Agreement”), that provides for the advancement of funds by the Landowner to be used to pay costs incurred in connection with the establishment of the Community Facilities District and the issuance of special tax bonds thereby, and provides for the reimbursement to the Landowner of such funds advanced, without interest, from the proceeds of any such bonds issued by the Community Facilities District; and

    WHEREAS, the City desires to include in this Resolution, in accordance with Section 53314.9 of the Act, the proposal to repay funds pursuant to the Deposit Agreement;

    NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows:

    • Section 1.The foregoing recitals are true and correct.
    • Section 2.The City Council hereby finds that the Petition is signed by the owner of the requisite amount of land proposed to be included in the Community Facilities District.
    • Section 3.The City Council proposes to establish a community facilities district under the terms of the Act. The boundaries of the territory proposed for inclusion in the Community Facilities District are described in the map showing the proposed Community Facilities District (the “Boundary Map”) on file with the City Clerk of the City (the “City Clerk”), which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to sign the original Boundary Map and record, or cause to be recorded, the Boundary Map with all proper endorsements thereon in the office of the San Luis Obispo County Recorder within 15 days of the date of adoption of this Resolution, all as required by Section 3111 of the California Streets and Highways Code.
    • Section 4.The name proposed for the Community Facilities District is “City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)”.
    • Section 5.The public facilities (the “Facilities”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Facilities” on Exhibit A hereto, which is by this reference incorporated herein. All of the Facilities to be financed will have an estimated useful life of five years or longer. They are public improvements that the City or another governmental entity is authorized by law to construct, own or operate or to which they contribute revenue. The Facilities to be financed are necessary to meet increased demands placed upon the City as the result of the development planned to occur in the proposed Community Facilities District. The incidental expenses proposed to be incurred are identified under the caption “Formation, Administrative and Incidental Expenses” on Exhibit A hereto. All or any portion of the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease-purchase or installment-purchase arrangement. To the extent the Facilities will not be constructed by the City, in the opinion of the City the public interest will not be served by allowing the property owners in the Community Facilities District to intervene in a public bidding process pursuant to Section 53329.5(a) of the Act.
    • Section 6.Except where funds are otherwise available, a special tax sufficient to pay for all Facilities, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District, will be annually levied within the Community Facilities District. The rate and method of apportionment of the special tax (the “Rate and Method”), in sufficient detail to allow each landowner within the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is described in Exhibit B attached hereto, which is by this reference incorporated herein. The conditions under which the obligation to pay the special tax to pay for Facilities may be prepaid and permanently satisfied are specified in the Rate and Method. The special tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine, including direct billing of the affected property owners.
    • Section 7.The tax year after which no further special tax to pay for Facilities will be levied against any parcel used for private residential purposes is specified in the Rate and Method. Under no circumstances shall the special tax to pay for Facilities in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Community Facilities District by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. For purposes of this paragraph, a parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit for private residential use is issued.
    • Section 8.Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself the right and authority to allow any interested owner of property within the Community Facilities District, subject to the provisions of said Section 53344.1 and to those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the Community Facilities District treasurer in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender.
    • Section 9.The City Council hereby fixes Tuesday, April 2, 2019, at 6:00 p.m., or as soon thereafter as the City Council may reach the matter, at 990 Palm Street, San Luis Obispo, California, as the time and place when and where the City Council will conduct a public hearing on the establishment of the Community Facilities District.
    • Section 10.The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the proposed Community Facilities District. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said public hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.
    • Section 11.The levy of said proposed special tax shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. Because there are no registered voters in the proposed Community Facilities District and there are expected to be no registered voters on the date of the election, the landowners will be the qualified electors pursuant to the Act. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the Community Facilities District, with each owner having one vote for each acre or portion of an acre such owner owns in the Community Facilities District.
    • Section 12.Each officer of the City who is or will be responsible for providing one or more of the proposed types of Facilities is hereby directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the Facilities by type which will in his or her opinion be required to adequately meet the needs of the Community Facilities District, and his or her estimate of the cost of providing the Facilities. Such officers are hereby also directed to estimate the fair and reasonable cost of the Facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid. Such report shall be made a part of the record of said public hearing.
    • Section 13.The Deposit Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. Each of the City Manager or Finance Director of the City, or the designee of such officer (each, an “Authorized Officer”), is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Deposit Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Deposit Agreement by such Authorized Officer.
    • Section 14.The Landowner has heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay costs incurred in connection with the establishment of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the Deposit Agreement.
    • Section 15.The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
    • Section 16.This Resolution shall take effect immediately upon its adoption.
  2. The map of the Community Facilities District and the exhibits to the Resolution which describe the Facilities proposed to be financed by the Community Facilities District and the Rate and Method are on file in the office of the City Clerk and are hereby referred to for detail.
  3. The time and place of the hearing on the establishment of the Community Facilities District are Tuesday, April 2, 2019, at 6:00 p.m., or as soon thereafter as the City Council may reach the matter, at 990 Palm Street, San Luis Obispo, California.
  4. At the hearing, the testimony of all interested persons or taxpayers for or against the establishment of the Community Facilities District, the extent of the Community Facilities District or the furnishing of specified types of public facilities will be heard. At the hearing, protests against the establishment of the Community Facilities District, the extent of the Community Facilities District or the furnishing of specified types of public facilities within the Community Facilities District may be made orally or in writing by any interested person, as provided in Section 53323 of the Act. If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one-half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax, file written protests against the establishment of the Community Facilities District, and the protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the Community Facilities District or to authorize the special tax may be taken for a period of one year from the date of the decision of the City Council. If the majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of facilities within the Community Facilities District, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated from the resolution of formation.
  5. The proposed voting procedure for the Community Facilities District is by mailed or hand-delivered ballot among the landowners in the Community Facilities District, with each owner having one vote for each acre or portion of an acre such owner owns in the Community Facilities District.

Teresa Purrington

City Clerk
City of San Luis Obispo

Return to full list >>