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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
.
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.
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
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