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HomeMy WebLinkAboutCC RES 04-67 RESOLUTION NO. 04-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, OF FORMATION OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1 (TUSTIN LEGACY/JOHN LAING HOMES), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT WHEREAS, on June 7, 2004, the City Council (the "City Council") of the City of Tustin (the "City"), pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"), adopted a resolution entitled "A Resolution of the City Council of the City of Tustin, California of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes" (the "Resolution of Intention"), stating its intention to establish a community facilities district (the "Community Facilities District") proposed to be named City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes), to authorize the levy of special taxes within the Community Facilities District to finance certain public facilities and services and setting the date for a public hearing to be held on the establishment of the Community Facilities District; WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing was published in the Tustin News, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; WHEREAS, on this date, the City Council opened, conducted and closed said public hearing; WHEREAS, pursuant to the Resolution of Intention, each officer of the City who is or will be responsible for providing one or more of the proposed types of public facilities or services was 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 public facilities and services 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 such public facilities and services; such officers were also directed to estimate the fair and reasonable cost of the public facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid; WHEREAS, said report was so filed with the City Council and made a part of the record of said public hearing; WHEREAS, at the hearing, the testimony of all interested persons and taxpayers for or against the establishment of the Community Facilities District, the extent of the Resolution No. 04-67 Page 1 of 25 Community Facilities District and the furnishing of the specified types of public facilities or services was heard; WHEREAS, written protests against the establishment of the Community Facilities District, the furnishing of any specified type or types of facilities or services within the Community Facilities District or the levying of any specified special tax were not made or filed at or before said hearing by 50% 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; WHEREAS, there has been filed with the City Clerk of the City a letter from the Registration and Elections Department of the County of Orange indicating that 12 or more persons have not been registered to vote within the territory of the proposed Community Facilities District for each of the 90 days preceding the close of said public hearing; 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 53521 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; and WHEREAS, the City and WL Homes LLC (the "Landowner") have entered into a Deposit and Reimbursement Agreement, dated as of June 1, 2004 (the "Deposit Agreement"), pursuant to which the Landowner has heretofore advanced certain funds, and the Landowner has agreed to advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby and, in accordance with Section 53314.9 of the Act, the City desires to accept such advances and to reimburse Resolution No. 04-67 Page 2 of 25 the Landowner therefor, without interest, from the proceeds of special tax bonds issued by the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. The foregoing recitals are true and correct. Section 2. The Community Facilities District is hereby established pursuant to the Act. Section 3. The Community Facilities District is hereby named "City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes)". Section 4. 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 are proposed to be purchased as completed public facilities. The services (the "Services") proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit A hereto. The incidental expenses proposed to be incurred are identified under the caption "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. Section 5. The proposed special tax to be levied within the Community Facilities District has not been precluded by majority protest pursuant to Section 53324 of the Act. Section 6. Except where funds are otherwise available, a special tax sufficient to pay for all Facilities and Services, 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 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 public 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 public facilities levied against any parcel used for private residential purposes be Resolution No. 04-67 Page 3 of 25 increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than 10%. 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 name, address and telephone number of the office which will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating further special tax levies pursuant to Section 53340.1 of the Act are as follows: Finance Director, City of Tustin, 300 Centennial Way, Tustin, California 92680, (714) 573-3061. Section 10. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City Council ceases. Section 11. The boundary map of the Community Facilities District has been recorded in the County of Orange in Book 88 at Page 49 of Maps of Assessments and Community Facilities Districts in the office of the County Recorder of the County of Orange. Section 12. The annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the Community Facilities District is hereby established at $15,000,000. Section 13. Pursuant to the provisions of the Act, the levy of the special tax and a proposition to establish the appropriations limit specified above shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing held by the City Council on the establishment of the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Resolution No. 04-67 Page 4 of 25 Facilities District and each landowner who is the owner of record as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District. The voting procedure shall be by mailed or hand-delivered ballot. 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 creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council has previously approved the acceptance of such funds for the purpose of paying costs incurred in connection with the creation 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. The Deposit Agreement is hereby incorporated herein as though set forth in full herein. Section 15. The City Council hereby finds and determines that all proceedings up to and including the adoption of this Resolution were valid and in conformity with the requirements of the Act. In accordance with Section 53325.1 of the Act, such finding shall be final and conclusive. Section 16. 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 17. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED at a regular meeting of the City Council of the City of Tustin held on July 19, 2004. ~ASHIMA Mayor ~~i~1 PAMELA STOKE City Clerk Resolution No. 04-67 Page 5 of 25 STATE OF CALIFORNIA) COUNTY OF ORANGE) CITY OF TUSTIN ) SS I, Pamela Stoker, 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 of the City of Tustin is five; that the above and foregoing Resolution No. 04-67 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of July, 2004, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: KAWASHIMA, BONE, DAVERT, HAGEN NONE NONE THOMAS (4) (0) (0) (1) Resolution No. 04-67 Page 6 of 25 EXHIBIT A FACILITIES, SERVICES AND INCIDENTAL EXPENSES Facilities The types of facilities proposed to be financed by the Community Facilities District are street improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, storm drains, public utilities, public parks and recreation facilities, public library facilities, fire protection facilities and equipment and land, rights-of-way and easements necessary for any of such facilities. Services The types of services proposed to be financed by the Community Facilities District are police protection services, fire protection services, ambulance and paramedic services, recreation program services, maintenance of parks, parkways and open space and flood and storm protection services. Incidental Expenses The incidental expenses proposed to be incurred include the following: (a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and (c) any other expenses incidental to the construction, completion, and inspection of the authorized work. Resolution No. 04-67 Page 7 of 25 EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Resolution No. 04-67 Page 8 of 25 RA TE AND METHOD OF APPORTIONMENT FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1 (TUSTIN LEGACY/JOHN LAING HOMES) A Special Tax shall be levied on all Assessor's Parcels in City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes) (lfCFD No. 04-1 If) and col1ected each Fiscal Year commencing in Fiscal Year 2004-2005, in an amount determined through the application of the Rate and Method of Apportionment as described below. All of the real property in CFO No. 04-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable fmal map, parcel map, condominium plan, or other recorded County parcel map. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act" means the Mello-Roes Community Facilities Act of 1982, being Chapter 2.5, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 04-1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs oftbe Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 04-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 04-1 or any designee thereof of complying with City, CFD No. 04-1 or obligated persons disclosure requirements of applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs oftbe City, CFO No. 04.1 or any designee tbereofrelated to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 04-1 for any other administrative purposes ofCFD No. 04-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. "Affordable Units" means residential dwelling units located on one or more Assessor's Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. City ofTllstin - TustinLegllC)l/John Laing Homes CFD No. 04-1 Affordable Units shall be further classified as Moderate Income, Lower Income, or Very Low Income (as defined in Sections 50079.5, 50093, and 50105 of the California Health And Safety Code), with the total number of Affordable Units not to exceed 63 Moderate Income units, 22 Lower Income units and 33 Very Low Income units. Affordable Units constructed within the CFD shaH be designated by the CFD Administrator in the chronological order in which the building permits for such units are issued. However, if the total number of Affordable Units constructed in anyone of the three affordable income categories exceeds the amount stated above for such income category, then the units exceeding such total shall be not be considered Affordable Units and shall be assigned to a Land Use Class based on the type of use and Residential Floor Area for each such unit. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. " Authorized Services" means those authorized services proposed to be financed by CFD No. 04-1 pursuant to the Act and listed in Exhibit A to this Rate and Method of Apportionment. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 04-1 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Facilities and the Special Tax Requirement for Services and providing for the levy and collection of the Special Taxes. "CFD No. 04-1" means City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes). "City" means the City of Tustin. "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "AU Urban Consumers" in the Los Angeles - Anaheim - Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles. "Council" means the City Council of the City, acting as the legislative body ofCFD No. 04- 1. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the -- £'t-tfffegacy/John Laing Homes July 8, 2004 Page 2 Final Subdivison was recorded on or prior to January 1 of the prior Fiscal Year and a building pennit for new construction was issued after January I, 2004 and prior to May 1 of the prior Fiscal Year. "Final Subdivision" means a subdivision of property by recordation of a fmal map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the maximum Special Tax A and/or maximum Special Tax B, as applicable. "Maximum Special Tax A" means the maximum Special Tax A detennined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax B" means the maximum Special Tax B determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means aU Assessor's Parcels of Developed Property for which a building pennit pennitting the construction of one or more non-residential units or facilities has been issued by the City. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries ofCFD No. 04-1 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, thatthe ratio of the actual Special Tax A levy to the Maximum Special Tax A is equal for all Assessor's Parcels of Developed Property and that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section E below. . City of Tustin - Tu~gflcy/John Laing Homes CFD No. 04-1 July 8, 2004 ReSolutlo~4-67 t'a of 25 "Public Property" means property within the boundaries of CFD No. 04-1 owned by, irrevocably offered or dedicated to, or over, through or under which an easement for purposes of public right-of-way has been granted, to the federal government, the State, the County, the City, or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. "Residential Floor Area" means all of the square footage of living area within the perimeter ofa residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Single Family Attached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for attached residential units. "Single Family Detached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for detached residential units. "Special Tax" means the Special Tax A and/or Special Tax B, as applicable. "Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for Facilities. "Special Tax A Buydown" means a mandatory bond principal buydown payment made by the property owner to reduce the amount of Outstanding Bonds to compensate for a loss of Special Tax A revenues resulting from the construction of fewer residential dwelling units, smaller residential dwelling units, or a modified amount of non-residential Acreage, as determined in accordance with Section D below. "Special Tax B" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for Services. "Special Tax Requirement for Facilities" means that amount required in any Fiscal Year for CFD No. 04-1 to: (i) pay debt service on al1 Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the Special Tax A levy in the previous Fiscal Year; less (vi) a credit for funds available to City ofTllstin - TllstinLegacy/John Laing Homes ~NcŸ.~.ijo. 04-67 Page 12 of 25 Jilly 8, 2004 Page 4 reduce the annual Special Tax A levy ,as detennined by the CFD Administrator pursuant to the Indenture. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 04-1 to (i) pay directly for Authorized Services due in the calendar year commencing in such Fiscal Year; (ii) pay a proportionate share of Administrative Expenses; less (iii) a credit for funds available to reduce the annual Special Tax B levy, as detennined by the CFD Administrator. "State" means the State ofCalifomia. "Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD No. 04-1 which are not exempt from the Special Tax pursuant to law or Section F below. "Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor's Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section F below. "Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public Property that are not exempt from the Special Tax pursuant to Section F below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 04-1 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment detennined pursuant to Sections C, D, and E below. Residential Property shall be assigned to Land Use Classes 1 through 13 as listed in Table I below based on the type of use and the Residential Floor Area for each unit. Non- Residential Property shall be assigned to Land Use Class 14. City of Tustin - TllstinLegacy/John Laing Homes CFD No. 04-1 JIÚY 8, 2004 ReSolutlo~ j>4-67 Pa t3"1)f 25 C. MAXIMUM SPECIAL TAX 1. Developed Property (a). Maximum Special Tax The Maximum Special Tax A and the Maximum Special Tax B for each Land Use Class is shown below in Table 1. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the Maximum Special Tax A plus Maximum Special Tax B. TABLE 1 Maximum Special Tax for Developed Property in City of Tustin Community Faciüties District No. 04-1 (Tustin Legacy/John Laing Homes) Fiscal Year 2004-2005 Single Family Detached Property => 3,350 s.f. $3,410 per unit $822 per unit 2 Single Family Detached Property 3,150 - 3,349 s.f. $3,182 per unit $822 per unit 3 Single Family Detached Property 2,950 - 3,149 s.f. $3,039 per unit $822 per unit 4 Single Family Detached Property 2,650 - 2,949 s.f. $2,988 per unit $822 per unit 5 Single Family Detached Property 2,350 - 2,649 s.f. $2,704 per unit $822 per unit 6 Single Family Detached Property 1,900 - 2,349 s.f. $2,453 per unit $822 per unit 7 Single Family Detached Property 1,500 - 1,899 s.f. $2,254 per unit $822 per unit 8 Single Family Detached Property < 1,500 S.£. $1,969 per unit $822 per unit 9 Single Family Attached Property => 1,700 s.f. $2,112 per unit $822 per unit 10 Single Family Attached Property < 1,700 s.f. $1,719 per unit $822 per unit 11 Affordable Units (Moderate Income) NA $378 per unit $822 per unit 12 Affordable Units (Lower Income) NA $209 per unit $209 per unit 13 Affordable Units (Very Low Income) NA $53 per unit $53 per unit 14 Non-Residential Property NA $26,322 per Acre $10,639 per Acre ~~~~ÍjÕ.Td'.f?6'fegacy/John Laing Homes fJäyt: 14 or 25 July 8, 2004 Page 6 (b). Increase in the Maximum SJ>ecial Tax The Fiscal Year 2004-2005 Maximum Special Tax A, identified in Table 1 above, shall not be subject to change and shall therefore remain the same in every Fiscal Year. On each July 1, commencing on July 1, 2005, the Maximum Special Tax B listed in Table 1 above shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year. (c). Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcel. 2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property (a). Maximum Special Tax A The Fiscal Year 2004-2005 Maximum Special Tax A for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $~9,4l4 per Acre. (b). Maximum Special Tax B Undeveloped Property, Taxable Public Property and Taxable Property Owner Association Property shall not be subject to a Maximum Special Tax B. (c). Increase in the Maximum Special Tax A The Fiscal Year 2004-2005 Maximum Special Tax A shall not be subject to change and shall therefore remain the same in every Fiscal Year. D. SPECIAL TAX A BUYDOWN All of the requirements of this Section D, which describes the need for a Special Tax A Buydown that may result from a change in development as determined pursuant to this Section D, shall only apply after the sale of Bonds by CFD No. 04-1. The following definitions apply to this Section D: "Certificate of Satisfaction of Special Tax A Buydown" means a certificate from the CFD Administrator stating that the property described in such certificate has sufficiently met the Special Tax A Buydown Requirement for such property as calculated under this Section D. City of Tumn - TustinLegacylJohn Laing HOIMII CFD No. 04-1 July 8, 2004 ReSolutio~4-67 t-'8 e of25 "Letter of Compliance" means a letter from the CFD Administrator allowing the issuance of building permits based on the prior submittal of a request for Letter of Compliance by a property owner. "Special Tax A Buydown Requirement" means the total amount of Special Tax A Buydown necessary to be prepaid to pennit the issuance of building permits listed in a request for Letter of Compliance, as calculated under this Section D. "Update Property" means an Assessor's Parcel of Undeveloped Property for which a building permit has been issued. For purposes of all calculations in this Section D, Update Property shall be taxed as if it were already Developed Property during the current Fiscal Year. 1. Request for Letter of Compliance The CFD Administrator must submit a Letter of Compliance to the City for a specific Assessor's Parcel or lot prior to the issuance by the City of a building permit for the construction of any residential and/or non-residential development on that Assessor's Parcel or lot. If a Letter of Compliance has not yet been issued, and a property owner wishes to request a building permit for an Assessor's Parcel or lot, the property owner must first request a Letter of Compliance from the CFD Administrator. The request from the property owner shall contain a list of all building pennits currently being requested, the Assessor's Parcels or tract and lot numbers on which the construction is to take place, and the Residential Floor Area (for each residential dwelling unit) or the Acreage (for each non- residential parcel) associated with each building pennit. 2. Issuance of Letter of Compliance Upon the receipt of a request for Letter of Compliance, the CFD Administrator shall assign each building pennit identified in such request to Land Use Classes 1 through 14 as listed in Table 2 below, based on the type of use and the Residential Floor Area identified for each such building permit. If the CFD Administrator detennines (i) that the number of building permits requested for each Land Use Class, plus those building permits previously issued for each Land Use Class, will not cause the total number of residential units or non-residential Acreage within any such Land Use Class to exceed the number of units or Acreage for such Land Use Class identified in Table 2 below, and (ii) that the total number of residential dwelling units anticipated to be constructed pursuant to the current development plan for CFD No. 04-1 will not be less than 565, then a Letter of Compliance shall be submitted to the City by the CFD Administrator approving the issuance of the requested building pennits. This Letter of Compliance shall be submitted by the CFD Administrator within ten days of the submittal of the request for Letter of Compliance by the property owner. However, should (i) the building pennits requested, plus those previously issued, cause the total number of residential units or non-residential Acreage within any such Land Use Class to exceed the number of units or non-residential Acreage for such Land Use Class identified in Table 2 below, or (ii) the CFD Administrator determine that changes in the development plan may cause a decrease in the number of residential dwelling units within CFD No. 04-1 City of Tustin - TustinLegacy/John Laing Homes ~~cw.tio. 04-67 page 1 ö or 2::> July 8, 2004 Page 8 to below 565 dwelling units, then a letter of Compliance will not be issued and the CFD Administrator will be directed to determine if a Special Tax A Buydown shall be required. TABLE 2 Expected Dwelling Units per Land Use Class and Non-Residential Acreage City of Tustin Community FaclUties District No. 04-1 (Tustin Legacy/John Laing Homes) 1 Single Family Detached Property => 3,350 s.f. 27 units 2 Single Family Detached Property 3,150 - 3,349 s.f. 50 units 3 Single Family Detached Property 2,950 - 3,149 s.f. 23 units 4 Single Family Detached Property 2,650 - 2,949 s.f. 19 units 5 Single Family Detached Property 2,350 - 2,649 s.f. 11 units 6 Single Family Detached Property 1,900 - 2,349 s.f. 19 units 7 Single Family Detached Property 1,500 - 1,899 s.f. 0 units 8 Single Family Detached Property < 1,500 s.f. 126 units 9 Single Family Attached Property => 1,700 s.f. 63 units 10 Single Family Attached Property < 1,700 s.f. 109 units 11 Affordable Units (Moderate Income) NA 63 units 12 Affordable Units (Lower Income) NA 22 units 13 Affordable Units (Very Low Income) NA 33 units 14 Non-Residential Property NA 0 Acres 3. Calculation of Special Tax A Buydown If a Special Tax A Buydown calculation is required as a result of item 2, above, the CFD Administrator shall review the current development plan for CFD No. 04-1 in consultation with the current property owners for all remaining Undeveloped Property in CFD No. 04-1, and shall prepare an updated version of Table 2 identifying the revised number of units or non-residential Acreage anticipated within each Land Use Class. The CFD Administrator shan not be responsible for any delays in preparing the updated Table 2 that results fÌ'om a refusal on the part of one or more current property owners of Undeveloped Property to provide information on their future development. City of Tustin - TustinLegacylJoh" Laing Homes CFD No. 04-1 JuI,8, 1004 ReSolutIOrp~4-67 I-'age of25 The CFD Administrator shall then review the updated Table 2 and detennine the Special Tax A Buydown Requirement, if any, to be applied to the property identified in the request for Letter of Compliance to assure the CFD's ability to collect special taxes equal to 110% debt service coverage on the Outstanding Bonds, plus the cost of annual CFD administration. The calculations shall be undertaken by the CFD Administrator as follows: Step 1. Compute the sum of the Maximum Special Tax A to be levied on all Developed Property and Update Property within CFD No. 04-1, plus the sum of the Maximum Special Tax A to be levied on all future development as identified in the current development plan as determined by the CFD Administrator in consultation with the property owner. Step 2. Determine the amount of Special Tax A required to provide 110% debt service coverage on the Outstanding Bonds, plus any other costs associated with the Special Tax Requirement for Facilities. Step 3. If the total sum computed pursuant to step 1 is greater than or equal to the amount computed pursuant to step 2, then no Special Tax A Buydown will be required and a Letter of Compliance shall immediately be issued by the CFD Administrator for all of the building pennits currently being requested. If the total sum computed pursuant to step 1 is less than the amount computed pursuant to step 2, then continue to step 4. Step 4. Determine the Maximum Special Tax A shortfall by subtracting the total sum computed purs.!lant to step 1 from the amount computed pursuant to step 2. Divide this Maximum Special Tax A shortfall by the amount computed pursuant to step 2. Step 5.The Special Tax A Buydown Requirement shall be calculated using the prepayment formula described in Section 1.1, with the following exceptions: (i) skip Paragraphs 1, 2 and 3, and begin with Paragraph 4; (ii) the Bond Redemption Amount in Paragraph 4 of the prepayment formula described in Section 1.1 shall equal the product ofthe quotient computed pursuant to step 4 above times the Previously Issued Bonds, as defined in Section I.l; (Hi) the Capitalized Interest Credit described in Paragraph 12 of Section 1.1 shall be $0; and (iv) any payments of the Special Tax A Buydown (less Administrative Fees and Expenses) shall be disbursed pursuant to the Indenture. The Special Tax A Buydown computed under step 5 shall be billed directly to the property owner of each Assessor's Parcel identified in the request for Letter of Compliance and shall be due within 30 days ofthe billing date. If the Special Tax A Buydown is not paid within 45 days of the billing date, a delinquent penalty of 10 percent shall be added to the Special Tax A Buydown. Upon receipt of the Special Tax A Buydown payment, the CFD Administrator shall issue a Letter of Compliance and a Certificate of Satisfaction of Special Tax A Buydown for the subject property. city of Tustin - TustinLegøcy/John Løing Homes ~iW-tJo. 04-67 I-'age 11:S or :¿b July 8, 2004 Page 10 4. Costs and Expenses Related to Implementation of Special Tax A Buydown The property owner of each Assessor's Parcel identified in the request for Letter of Compliance shall pay all costs of the CFD Administrator or other consultants required to review the application for building permits, calculate the Special Tax A Buydown, issue Letters of Compliance or any other actions required under Section D. Such payments shall be due 30 days after receipt of invoice by such property owner. A deposit may be required by the CFD Administrator prior to undertaking work related to the Special Tax A Buydown. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The Special Tax A shan be levied each Fiscal Year as follows: First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax A; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximwl1 Special Tax A for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Special Tax A for Taxable Property Owner Association Property; Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax A for Taxable Public Property. 2. Special Tax B Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax Requirement for Services. The Special Tax B shall be levied Proportionately each Fiscal Year on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax B as needed to satisfy the Special Tax Requirement for Services. City of Tustin - TustinLegacy/John Laing Homes CFDNo.04-1 July B,2004 ReSolutlqib~4-67 Flag of 25 F. EXEMPTIONS 1. Special Tax A No Special Tax A shall be levied on up to 1.4 Acres of Public Property and up to 27.1 Acres of Property Owner Association Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or Property Owner Association Property, its tax-exempt status will be revoked. Public Property or Property Owner Association Property that is not exempt from the Special Tax A under this section shall be subject to the levy of the Special Tax A and shall be taxed Proportionately as part of the third and fourth steps in Section E.l. 2. Special Tax B No Special Tax B shall be levied on Undeveloped Property, Public Property and Property Owner Association Property. G. APPEALS AND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tax levied on such landowner's or resident's Assessor's Parcel is in error may submit a written appeal to CFD No. 04-1. The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount of the Special Tax levied shaH be appropriately modified. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make detenninations relative to the amount of Administrative Expenses and any landowner or resident appeals. Any decision of the Council shaH be final and binding as to all persons. H. MANNER OF COLLECTION Special Tax A and Special Tax B will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the Council shall detennine, including direct billing of the affected property owners. The Special Tax A Buydown shall be directly billed to the property owner at the time such Special Tax is being levied. I. PREPAYMENT OF SPECIAL TAX A The following definitions apply to this Section I: "Buildout" means, for CFD No. 04-1, that all expected building permits have been issued. City of Tustin - TustinLegacy/John Laing Homes BnPJWj~1)Io. 04-67 t-'age 20 of LO July 8, 2004 Page 12 "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Prepayment in Full The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid and permanently satisfied as described herein only after the sale of Bonds by CFD No. 04-1; provided that a prepayment may be made only for Assessor's Parcels of Developed Property or Undeveloped Property for which a building permit has been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax A obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tax B may not be prepaid. The Special Tax A Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as deemed below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit ~ Capitalized Interest Credit equals Prepayment Amount Total: As of the proposed date of prepayment, the Special Tax A Prepayment Amount (defmed below) shall be calculated as follows: Parae:raDh No.: 1. Confmn that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Maximum Special Tax A for the current Fiscal Year applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property (for which a building permit has been issued) to be prepaid, compute the Maximwn Special Tax A for the current Fiscal Year applicable for that Assessor's Parcel as though it was already designated as Developed Property, based upon such building pennit. CiJy of Tustin - TustinLegacy/John Laing Homes CFD No. 04-1 July 8, 2004 ReSolutr=-67 P f25 3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total estimated Maximum Special Tax A for CFD No. 04-1 based on the Developed Property Special Tax A which could be levied in the current Fiscal Year on all expected development through Buildout, excluding any Assessor's Parcels the Special Tax A for which have been prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-I 00%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Previously Issued Bonds. 7. Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 8. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tax A Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 9. - Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8 (the "Defeasance Amount"). 10. Verify the administrative fees and expenses ofCFD No. 04-1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 11 If reserve funds for the Previously Issued Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Previously Issued Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 12. If any capitalized interest for the Previously Issued Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment (the "Capitalized Interest Credit'). City of Tustin - TustinLegacy/John Laing Homes 8Ji~icæ~o. 04-67 t"age LL of .2ð July 8, 2004 Page 14 13. The Special Tax A Prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to paragraphs 11 and 12 (the "Prepayment Amount"). 14. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4,5,9, 11 and 12 sha1l be deposited into the appropriate fund as established under the Indenture and be used to retire Previously Issued Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 04-1. The Special Tax A Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to make debt service payments. As a result of the payment of the coo-ent Fiscal Year's Special Tax A levy as detennined under paragraph 7 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax A levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax A and the release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax A shall cease. Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Tax A that may be levied on Taxable Property within CFD No. 04-1 (after excluding 1.4 Acres of Public Property and 27.1 Acres of Property Owner Association Property as set forth in Section F) both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Previously Issued Bonds, plus the cost of annual CFD administration. 2. Prepayment in Part The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building pennit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 1. 1; except that a partial prepayment shall be calculated according to the following fonnula: PP = PE X F. These tenDS have the following meaning: PP = the partial prepayment PE = the Special Tax A Prepayment Amount calculated according to Section 1.1 F = the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel is partially prepaying the Special Tax A. City of Tustin - TustinLegacy/John Laing Homes CFD No. 04-1 July 8, 2004 ReSolutl%~4-67 Pag of 25 The owner of any Assessor's Parcel who desires such prepayment shaH notify the CFD Administrator of such owner's intent to partiaHy prepay the Special Tax A and the percentage by which the Special Tax A shall be prepaid. The CFO Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax A for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partiaHy prepaid, the Council shall (i) distribute the funds remitted to it according to Section 1.1, and (ii) indicate in the records of CFO No. 04-1 that there has been a partial prepayment of the Special Tax A and that a portion of the Special Tax A with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax A, shall continue to be levied on such Assessor's Parcel pursuant to Section E.!. J. TERM OF SPECIAL TAX The Special Tax A shall be levied for a period not to exceed forty years commencing with Fiscal Year 2004-2005. The Special Tax B shaH be levied as long as necessary to meet the Special Tax Requirement for Services. K: \Clien ts2\ Tustin. C i t\T ustinM CAS\J ohnLaing\RMA \LaingßF inal.doc City of Tustin - Tustinùgacy/John Laing Homes 8nP)(1ØJ~1)Io. 04-67 t-'age :.::4 of .25 July 8, 2004 Page 16 EXIllBIT A AUTHORIZED SERVICES The types of services proposed to be financed by CFD No. 04-1 are police protection services, fire protection services, ambulance and paramedic services, recreation program services, maintenance of parks, parkways and open space and flood and storm protection services. Resolution No. 04-67 Page 25 of 25