HomeMy WebLinkAbout04 APPOINTMENT OF PARTIES FOR THE FORMATION OF CFD 2014-1MEETING DATE: MARCH 18, 2014
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR /CITY TREASURER
SUBJECT: ADOPT RESOLUTION NO.14 -23 APPOINTING CERTAIN PARTIES TO
ASSIST THE CITY OF TUSTIN WITH THE PROPOSED FORMATION OF
COMMUNITY FACILITIES DISTRICT No. 2014 -1 ( TUSTIN
LEGACY /STANDARD PACIFIC) AND PROPOSED FUTURE BOND
SALE
SUMMARY:
The City is considering the formation of Community Facilities District No. 2014 -1.
Resolution No.14 -23 authorizes City Staff to proceed with appointing the consultants to
assist with the formation of Community Facilities District No. 2014 -1 (Tustin
Legacy /Standard Pacific) and proposed future bond sale.
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 14 -23 authorizing the
appointment of consultants in connection with the Community Facilities District No.
2014 -1 (Tustin Legacy /Standard Pacific).
FISCAL IMPACT:
Any obligation of the City to pay the designated consultants' fees will be reimbursed out
of the sales price of the land sold to Standard Pacific Corporation ( "Standard Pacific ").
The fee of the financial advisor, Fieldman, Rolapp & Associates, for financial services
performed in connection with the formation of Community Facilities District No. 2014 -1
(Tustin Legacy /Standard Pacific) is not to exceed $30,000. The fee of bond counsel,
Stradling Yocca Carlson & Rauth, a Professional Corporation, is approximately $20,000.
The fee of special tax consultant, Albert A. Webb Associates, is approximately $25,000.
The fee of market absorption consultant, Empire Economics, is approximately $22,000.
The fee of appraiser, Harris Realty Appraisal, is approximately $25,000. The fee of
disclosure counsel, Quint & Thimmig LLP, is approximately $35,000.
The fee of Underwriter, Stifel Nicolaus, will be incurred when Community Facilities
District No. 2014 -1 (Tustin Legacy /Standard Pacific) Bonds are sold after the formation
of the CFD. A Bond Purchase Agreement will be brought back to the City Council as
part of the approval of the legal and financing documents required for the bond sale. It is
anticipated the Underwriter's management and average takedown fee is expected to be
ADOPT RESOLUTION NO. 14 -23 APPOINTING CONSULTANTS IN CONNECTION WITH THE PROPOSED FORMATION OF
COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY /STANDARD PACIFIC)
MARCH 18, 2014 PAGE 2
approximately $11.00 per $1,000 bond and their expenses are expected to be
approximately $20,000. Therefore if the City issues up to $20.0 million of bonds, their
fee is expected to be approximately $240,000 fully contingent on the successful sale of
bonds.
CORRELATION TO THE STRATEGIC PLAN:
The recommendation correlates to the City's strategic plan for the establishment of a
financing structure for an assessment district to aid in developing critical phases of Tustin
Legacy, Goal A.
BACKGROUND:
The City of Tustin is the fee title owner of 100% of the real property (the "Property")
located in the Legacy Project described in a Development Disposition Agreement, by
and between the City and Standard Pacific Corp., a Delaware corporation dated as of
March 4, 2014 (the "DDA "). In the DDA, it sets forth the terms and conditions whereby
the City intends to convey the Property to Standard Pacific which will develop the
Property into single family homes and provides for the establishment of a community
facilities district to provide for financing of certain facilities and services.
Pursuant to Section 533318(a) of the Mello -Roos Community Facilities Act of 1982, as
amended, commencing with Section 53311 of the Government Code (the "Act "), the
City Council of the City (the "City Council ") will receive a written request from two of its
City Councilpersons to commence proceedings to form a community facilities district
with boundaries coterminous with the Property to be known as the "City of Tustin
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific) ".
Staff recommends that the City Council adopt a resolution: (a) appointing the
professionals necessary to assist Staff with the formation of Community Facilities
District No. 2014 -1 (Tustin Legacy /Standard Pacific) and future bond sale including
Fieldman, Rolapp & Associates as Financial Advisor, Stradling Yocca Carlson & Rauth
as Bond Counsel, Albert A. Webb Associates as Special Tax Consultant, Empire
Economics as Market Absorption Consultant, Harris Realty Appraisal as Appraiser,
Quint & Thimmig LLP as Disclosure Counsel and Stifel Nicolaus as Underwriter; and (b)
authorizing the City Manager or the Finance Director to execute agreements with
Fieldman, Rolapp & Associates, Stradling Yocca Carlson & Rauth, Albert A. Webb
Associates, Empire Economics, Harris Realty Appraisal, Quint & Thimmig LLP and
Stifel Nicolaus for their services related to the formation of Community Facilities District
No. 2014 -1 (Tustin Legacy /Standard Pacific) and future bond sale in form acceptable to
the City Manager, the Finance Director and the City Attorney. All compensation
payable to the financial advisor, bond counsel, special tax consultant, market absorption
consultant, appraiser, disclosure counsel and underwriter will be reimbursed out of the
sales price of the land sold to Standard Pacific Corporation or from future CFD Bond
proceeds.
ADOPT RESOLUTION NO. 14 -23 APPOINTING CONSULTANTS IN CONNECTION WITH THE PROPOSED FORMATION OF
COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY /STANDARD PACIFIC)
MARCH 18, 2014
PAGE
It is anticipated that Community Facilities District No. 2014 -1 (Tustin Legacy /Standard
Pacific) will be formed in July of 2014 and the transfer of property will occur in August of
2014. It is anticipated that the CFD bond sale would occur in late 2014.
Pamela Arends -King
Finance Director /City Treasurer
Attachment: Resolution No. 14 -23
RESOLUTION NO. 14 -23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
APPOINTING CERTAIN PARTIES TO ASSIST THE CITY OF TUSTIN WITH THE
PROPOSED FORMATION OF THE CITY OF TUSTIN COMMUNITY FACILITIES
DISTRICT NO. 2014 -1 (TUSTIN LEGACY /STANDARD PACIFIC) AND PROPOSED
FUTURE BOND SALE THEREBY
The City Council of the City of Tustin does hereby resolve as follows:
WHEREAS, the City of Tustin, California (the "City ") is the fee title owner of 100% of the real
property (the "Property ") described in Attachment 2 to that certain Development Disposition
Agreement (the "DDA "), by and between the City and Standard Pacific Corp., a Delaware
corporation ( "Standard Pacific "); and
WHEREAS, pursuant to the terms and conditions set forth in the DDA, the City intends to
convey the Property to Standard Pacific which will develop the Property as set forth therein; and
WHEREAS, the DDA provides for the establishment of a community facilities district and
bond sale thereby to provide for financing of certain facilities and services described therein; and
WHEREAS, pursuant to Section 53318(a) of the Mello -Roos Community Facilities Act of
1982, as amended, commencing with Section 53311 of the Government Code (the "Act'), the City
Council of the City (the "City Council') has received a written request from two of its City
Councilpersons to commence proceedings to form a community facilities district with boundaries
coterminous with the Property to be known as the "City of Tustin Community Facilities District No.
2014 -1 (Tustin Legacy /Standard Pacific)" (the "Community Facilities District'); and
WHEREAS, the City desires to retain the firm of Fieldman, Rolapp & Associates, Inc. (the
"Financial Advisor ") to assist in the formation of the Community Facilities District and future bond
sale thereby as Financial Advisor; and
WHEREAS, the City desires to retain the firm of Stradling Yocca Carlson & Rauth, a
Professional Corporation ('Bond Counsel'), to assist in the formation of the Community Facilities
District and future bond sale thereby as Bond Counsel; and
WHEREAS, the City desires to retain the firm of Albert A. Webb Associates to act as Special
Tax Consultant for the formation of the Community Facilities District and future bond sale thereby;
and
WHEREAS, the City desires to retain the firm of Empire Economics, Inc. ( "Empire
Economics ") to provide a market absorption study and price point information for the formation of
the Community Facilities District and future bond sale thereby; and
WHEREAS, the City desires to retain the firm of Harris Realty Appraisal ( "Harris Realty ") to
provide an appraisal report for the Community Facilities District in preparation for a bond sale by the
Community Facilities District; and
Resolution No. 14 -23
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WHEREAS, the City desires to retain the firm of Quint & Thimmig LLP ( "Disclosure
Counsel'), to act as Disclosure Counsel with respect to the future bond sale by the Community
Facilities District; and
WHEREAS, the City desires to retain the firm of Stifel, Nicolaus & Company, Incorporated
( "Underwriter"), to act as Underwriter with respect to the future bond sale by the Community
Facilities District.
NOW, THEREFORE, it is hereby ORDERED and DETERMINED by the City Council of the
City of Tustin that:
SECTION 1: Each of the above recitals is true and correct.
SECTION 2: To assist with the potential formation and bond sale of the Community
Facilities District, Stradling Yocca Carlson & Rauth, a Professional Corporation, is hereby appointed
as Bond Counsel to the City, Fieldman, Rolapp & Associates, Inc., is hereby appointed as Financial
Advisor to the City, Albert A. Webb Associates is hereby appointed as Special Tax Consultant to the
City, Empire Economics is hereby appointed as Market Absorption Consultant to the City, Harris
Realty is hereby appointed as Appraiser to the City, Quint & Thimmig LLP is hereby appointed as
Disclosure Counsel to the City, and Stifel, Nicolaus & Company, Incorporated is hereby appointed
as Underwriter for the future bond sale by the Community Facilities District. The Mayor, City
Manager and City Treasurer, or their designees, are authorized to provide for all services necessary
to effect the formation of the Community Facilities District, including Financial Advisor services,
Bond Counsel services, Special Tax Consultant services, Market Absorption Consultant services,
Real Estate Appraiser services, Disclosure Counsel services, Underwriter services and any other
services deemed appropriate by the City Manager or his designee.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held
on the 18th day of March 2014.
Elwyn A. Murray,
Mayor
ATTEST:
Jeffrey C. Parker,
City Clerk
Resolution No. 14 -23
Page 2 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Jeffrey C. Parker, City Clerk and ex- officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council is five; that
the above and foregoing Resolution No. 14 -23 was duly passed and adopted at a regular meeting of
the City Council, held on the 18th day of March 2014 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Jeffrey C. Parker,
City Clerk
Resolution No. 14 -23
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