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HomeMy WebLinkAbout35-Public Works CITY OF SAN _R~DINO File No; 14;40-50 - REQUEST FOR COUNCIL ACTION From: ROGER G. HARDGRAVE, Direc~EC'1l.-ADMltt.lutf8ct: ISll9 MAR 20 Pl\ 12: 34 Authorization to Proceed: Cajon & .June Acquisition Assessment District Dept: Public Works/Engineering Date: March IS, 1989 ~ Synopsis of Previous Council action: 6-16-86 Authorization to proceed under Chapter 12.90 granted. Recommended motion: That the request for the establishment of an Acquisition Assessment District for the area of Cajon and June Streets be denied. -OR- That the City Engineer and City Clerk are authorized to proceed with initiating proceedings for the establishment of an assessment district under the provisions of the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915 to cover a acquisition of a portion of all offsite improvements in Tracts 14184 14185 in the City of San Bernardino and to do all things neces bring t to timely completion. cc: Jim Robbins, Acting City Administrator Jim Richardson, Asst. Ci~ Adm. Dev. Contact person: Via,.",. NJlltlAAII Phone: ~A4-5026 Supporting data attached: Staff R~pnrt, MAp Ward: ,; FUNDING REQUIREMENTS: Amount: NgNE: Source: (Acct. No.! (Acct. DescriDtionl Finance: Council Notes: 2<" . CITY OF SAN BERtC)RDINO - REQUEST lOR COUNCIL ACTION STAFF REPORT Page 1 of 2 The original owner requested that an assessment district be formed to finance the installation of some required infrastructure items. This request was reviewed by the Council Assessment District Committee and recommended for approval. At the Council Meeting of 6-16-86, authorization was granted to proceed. The subdivision was prevented from going ahead due to the moratorium. All of the property, except for the commercial frontage along Cajon Boulevard, has been sold to Century Homes. A request has been submitted by Century Homes for an acquisition district to be formed to finance approximately 30% of the required infrastructure. Under an acquisition assess- ment district, the subdivider would construct the improvements and the district would "acquire" them. Formation of the district would allow the initial price of the homes to be reduced, with the cost paid by the property owners over the term of the bonds, probably 20 years. The estimated cost of improvements to be acquired by the district is $1,680,000. This amount will be used to finance the costs for streets, sewer, water and drainage (portion). Addition of normal bonding and incidental costs will increase this amount to about $2,088,800. The assessment on each lot would be about $420, plus interest, on their tax bill for the next 20 years. A common criteria for assessment districts is that the value of the finished lots is at least 3 times greater than the assessment. The proposed district meets this criteria. Buyers will be required to sign an acknowledgement that they are aware of the assessment district and the assess- ments that will be on their tax bills. However, they often don I t understand or fail to remember signing when the first tax bill comes. The 1913 Act was recently revised to allow an official statement to be written so as to not put the issuing agency's credit behind the bonds. Security for the bonds would be the land within the district, which is valued at least 3 times the amount of the bonds. Assessment districts are not normally used to finance the improvement of residential streets. Approval of this district could well precipitate similar requests from other residential subdividers. The subdivider has cited intangible benefits, such as upgraded gateway into the City, addition to economic base, and necessary infrastructure improvements for the entire area. 3-15-89 75-0264 CITY OF SAN BERORDINO - REQUEST C))R COUNCIL ACTION STAFF REPORT Page 2 of 2 The subdivider would be required to deposit funds to cover the costs associated with formation of the district. These funds would be refunded upon sale of the bonds. Also, there will be a 1% administrative fee paid from the district, which will be deposited in our assessment district reserve fund. 3-15-89 7S-0264 . .. o o , , i ~ :: ! :i i r i i ~ i ....4"... ~ , -,. i " 1 N Cc ~ ~ ! ." i ' , , I -~ ! ~ n.4."1I. au.."",,, t , ", , '. __.1....-_ ,. .... -::~:- ~ " ~"\ ~ : , S '!. ! . ! l ~ t"Jll ~\ " 0 1.p~ ~() \fI . .~ n ! i ~ . ~ ~6' I (' ~ < L~-2 , )'V~ I, I" . . OCENTURYHOME~ FOR THE'. HOME'. OF YOUR LlFE'.! I I 'larch 13, 1989 - w Mr. Roger Hardgrave, City Engineer City Of San Bernardino 300 N. "D" Street San Bernardino, CA ;a of: N cr>> RE: Formation of an Improvement District Pursuant to the 1913 Act, State of California. Dear Mr. Hardgrave: Since Placencia, construction 14U15. the last discussions wi th Richard Century Homes has completed all plans for the project described as Davalos and engineering Tracts 14184 Rod and and Request is hereby made that the City Staff start the process to form the Acquisition District and prepare a recommendation for Council approval. The costs associated with the develo!,ment of the project exceed those which, under normal circumstanc~~. should be expected. The excess costs are primarily associate'; with lhe agreement (between the City of San Bernardino and Century H6mes), to participate in the extension of sewer mains in the area, extensive flood control basins which benefit the entire area and providing street network design "hich improves accessibility to ad.joining City neighborhoods. Intan.~ible benefits accruiniil lo the City should the Improvement District be approved, allowing Century to proceed with the proJect, are numerous. Among them are: A) Provides an upgraded residential gateway at the northern boundary of t~e city west of 1-215. Bl The Project's residences will add to the economic base of the city, particularly the newly develQped and planned retail/commercial facilities in the general area. C) In the future, should the city wish to annex the adjoining "sphere of influence area", the Century project wilh its associated improvements, provided in part by the approved bonds, will have provided much of the infrastructure for future development. Given t.he above, we feel that t.he formation of t.he 1913 Acquisit.ion District with the associated 1915 Act bond guarantees for part of the projects improvements is in the best interest of the City and all concerned. 6867 Airport Drive. Bldg. 100. Riverside. CA 92504 P.O. Box 8110. San Bernardino. CA 92412 7141354-7511 . 714/370-3001 . FAX 714/354-0347 . '".. . Roger Hardgrave HE: TR 14184 & 14185 - Improvement Dist. March 11, 1989 Of course, Century Homes is willing to (and has), provided funds for all engineering and design related work associated with the anticipated acquisition act improvements. It should be noted that this request represents approximately 30% of the costs which might qualify under the wording and intent of the act. Enclosed, please find an itemized engineers estimate of the improvement costs to be covered by the bond. Thank you in advance for your, and the City's, assistance. If you have any questions or comments, don't hesitate to contact me directly. Yours truly, ~~ oh C. Head, III ro,ject Director JCH:dl,j attachment t~~;~~irS'f:=~~~~~===========zz==~_-===O~~~~~=~z~~Tl~~=======--":============Qr.:-=._z__=- TRACT N'JllCEr..: 14484 -14.85' l<<JlI: IF.DER NO. TF;A:- tW'.E : s.1N BEP.tloiiDlNo/GMeaao...a FF.EPAf:(C, SY JEF.Fi I1C CL( . GO' .'111;; : 277 RANa.M Cf:ECt:E~ 9'1 ~TE : ~/15/8B rE; lil6/~o FILE: MU~EN:.CA. ::===================aza:==.======--- ____z:a====================S&z=============================:s======== ACT. mClilrTI[J1 COET PER 11m AESESS/1E'1T CISTRICT =========asz::============zz===;====a:...=================================a:====----==.~==..z:=========.z: ; U!'.HliINu A.'lD ClHf:HlG : -ra,2OO: 1,5(':<.53; ---- ~. .--........--.........---- ------ ----: -- --------: ..._--------: .. .;IF:EETS 005,972: 2.909.65: 8C5,972 -----.-------------------------:-------------1------------: III : Itl.TF.ACT SElEI' 474,7-5: 1,713.~. : It( 0/5 SEWER 474,745 ------ ----...-..----------..---: -...--..-------: -----~---_...: iV ,UHr;ACT WAm : 324,444: 1,171.:8: 324.444 ... -~- -..---.,. ------------- -----.' ;-------~.;.-_... :----.;.--_.._--: . ;UHrJltT Dr(AItlAG( ; f14.180 : 31)3.90 : 74,839 - .--.. ~---------------------_.' : --~ ----------: .._----------: VI :rO(;Jtll/LAtID!J(AF'l ; ~87 .415: 1.390.bl: .-----. ~ ..~......_.~. -----------..-. --: ~------------ :----.;...~._----: VII 'reiER, GAS, ETC. : 7S1.ZG? 2.71i.Z3: --. -.. --~ ------- .-. ---------_.: ------.;.----: --'.::_-----: '.'I1I 'CI\'IL/SOILC nlCI'UFltlG: 388,105: 1,401,10: =====:===~===============~=====:==::=========1=======z====: WE: TOTkL (IT-SiTE: 3.t32.35'): 1:.113.18; CC~lTWSENC-( W,. 36:..:35: 1.311. 32 ~ fiH!B~SEA[IL( com :23;9181: ( 1,891.'0;: TOTilL IrF-SITE CCS:[ 3,4'1,667: 12,533.09: ..-.- ..- . .----------------..-.- ...---.------.-l-----.---~--l II 'FEf.:MlTE AND FEES l,eu,BI5: 1.,540.85: . -. -- ------- ---..-. ---- ~-------- : -.-. --------- : -------- -- : CCtlTW5ENCV 4l : 72!473 261.63 I F;EII1l.uf.SEAEU COSTS : i\)lAl. FERMITS ~ om. t.3t4.200 1.,8('2.48 : =================================~==============================================================--======== 5';'l~C TOTAl. 5.355,955 10.335.59 TOiA.. 1,/>8':;,000 \rU~1 I c.r. or.,. '1,"'''1