AGENDA REPORT
Meeting Date: September 16, 2025
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Subject: ORDINANCE OF THE CITY OF BEVERLY HILLS, CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIESDISTRICT NO. 2025-1 (ONE BEVERLY HILLS) OF THE CITY OF BEVERLYHILLS AUTHORIZING THE LEVY OF SPECIAL TAXES WITHINIMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 Attachments: 1. Ordinance
RECOMMENDATION
It is recommended that the City Council move to waive the full reading and adopt the ordinance entitled: “ORDINANCE OF THE CITY OF BEVERLY HILLS, CALIFORNIA ACTING IN ITSCAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025- 1 (ONE BEVERLY HILLS) OF THE CITY OF BEVERLY HILLS AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2”INTRODUCTION At its meeting of August 19, 2025, the City Council conducted a first reading of this ordinance and introduced it.
DISCUSSION
At the meeting on August 19, 2025, the City Council made changes to the recitals in the ordinance,which included increasing from $10 million to $15 million the amount of funds that the City will receive which can be dedicated to any eligible facility. These changes have now been incorporatedinto the ordinance being presented to the City Council for adoption.
FISCAL IMPACTPursuant to the Reimbursement Agreement approved by the City Council in November 2024, theDeveloper is responsible for depositing funds with the City to cover all costs associated with the formation of the CFD, including City staff time and consultant fees. Therefore, there is no fiscal impact on the City’s General Fund from the CFD formation process itself. If the CFD is formed and
B0785-0001\3 I 52803v I .doc
Meeting Date: September 16, 2025
bonds are issued, the bonds will be the sole responsibility of the CFD, secured by special taxeslevied on property within the CFD. The City will not be obligated to pay the bonds. Furthermore, all administrative costs associated with forming and managing the CFD, including the costs of any potential future foreclosure actions, are legally required by the CFD documents to be paid from the special tax revenues generated within the CFD district, not from the City’s General Fund. TheDeveloper has agreed to a $15 million contribution towards future public facilities improvements in conjunction with actual bond issuance and has agreed to amend the development agreement for the One Beverly Hills project to increase the Environmental Mitigation and Sustainability Fee by 1% for the second and future sales of property, except for 20 residential units which are currently contracted for sale.
Laurence S. Wiener
City Attorney
Approved By
B0785-0001\3 I 52803v 1 .doc
Attachment
1 ORDINANCE NO. 25-0-
ORDINANCE OF THE CITY OF BEVERLY HILLS, CALIFORNIA ACTING INITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (ONE BEVERLY HILLS) OF THE CITY OF BEVERLYHILLS AUTHORIZING THE LEVY OF SPECIAL TAXES WITHINIMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 WHEREAS, on July 15, 2025, the City Council (the “City Council”) of the City of Beverly Hills (the “City”) adopted Resolution No. 25-R-13554 (the “Resolution of Intention”) declaring its intention to form Community Facilities District No. 2025-1 (One Beverly Hills) ofthe City of Beverly Hills (the “District”) and Improvement Area No. I (“Improvement Area No. 1”) and Improvement Area No. 2 (“Improvement Area No. 2” and together with Improvement Area No. 1, the “ImprovementAreas” and each an “Improvement Area”) therein pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part I of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 25-R-13555 declaring its intention to incur bonded indebtedness for each of Improvement Area No. 1 and Improvement Area No. 2; and WHEREAS, on August 19, 2025, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the designation of the Improvement Areas, the proposed levy of a special tax therein to finance certain public facilities and services described in the Resolution of Intention and to secure the payment of any bonded indebtedness of the District for the Improvement Areas, and the proposed issuance of up to $100,000,000 of bonded indebtedness for Improvement Area No. 1 and up to $450,000,000 of bonded indebtedness for Improvement Area No. 2, as described in the Resolution ofIntention; and WHEREAS, at the August 19, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District, the designation of the Improvement Areas and theproposed levy of the special taxes to finance the facilities and services described in the Resolution of Intention and to secure the payment of up to $100,000,000 of bonded indebtedness for Improvement B0785-0001\3 147564v3.doc
Area No. I and of up to $450,000,000 of bonded indebtedness for Improvement Area No. 2 as described in the Resolution of Intention (together, the “Bonds”) were heard and a full and fair hearing was held; and
WHEREAS, on August 19, 2025, the City Council adopted Resolution Nos. 25-R-13561 (the “Resolution of Formation”) and 25-R-13562 which formed the District, designated the Improvement Areas and called a special election within each of Improvement Area No. I and Improvement Area No. 2 on August 19, 2025 in each case on three propositions relating to the levy of a special tax within each Improvement Area, the issuance of the Bonds by the District for each Improvement Area and the establishment of an appropriations limit within the District; and WHEREAS, on August 19, 2025, a special election was held within Improvement Area No. I at which the qualified electors therein approved by more than a two-thirds vote Propositions A, B and C set forth in Exhibit B to the Resolution of Formation authorizing the levy of a special tax withinImprovement Area No. 1 for the purposes described in the Resolution of Formation, the issuance of the Bonds for Improvement Area No. I as described in the Resolution of Formation and establishing an appropriations limit for the District; and
WHEREAS, on August 19, 2025, a special election was held within Improvement Area No. 2 at which the qualified electors therein approved by more than a two-thirds vote Propositions D, E andF set forth in Exhibit C to the Resolution of Formation authorizing the levy of a special tax withinImprovement Area No. 2 for the purposes described in the Resolution of Formation, the issuance of the Bonds for Improvement Area No. 2 as described in the Resolution of Formation and establishing an appropriations limit for the District; and
WHEREAS, the facilities to be funded by the District that are part of the previously approved One Beverly Hills Overlay Specific Plan Project were fully analyzed in a Supplemental Environmental Impact Report (known by State Clearinghouse Number 2020090048, and hereafter referred to as the “SEIR”) that was prepared pursuant to the requirements of the California Environmental Quality Act 2 B0785-0001\3 147564v3.doc
(“CEQA”), and certified by the City Council by Resolution No. 21-R-13348 adopted on June 8, 2021.
A Mitigation Monitoring and Reporting Plan was adopted and mitigation measures were adopted by the City Council and made binding on the Project. Because the One Beverly Hills Overlay Specific Plan facilities to be funded by the District are part of the approved Project, and are fully within thescope of the environmental analysis in the certified SEIR, no further environmental analysis of thoseimprovements is required at this time. Pursuant to the City Facilities Funding Agreement between the City and BH LUXURY RESIDENCES LLC AND OWR HOTEL OWNER LLC, each a Delaware limited liability company, the City will receive the first $15 million of bond proceeds with which to fund other eligible facilities that are unknown at this time. Thus environmental analysis of any suchfuture facilities at this time would be purely speculative. At such time in the future that facilitiesfunded with the $15 million are proposed, the City will undertake the necessary environmental review as may be required by CEQA. Further, the formation of the District as to the incidental expenses andservices described in Exhibit A to the Resolution of Formation does not constitute a project for CEQA purposes, because those components, although also covered within the scope of the SEIR, reflect thecreation of government funding mechanisms or other government fiscal activities that do not involveany commitment to any specific project which may result in a potentially significant physical impacton the environment.
NOW, THEREFORE, the City Council ofthe City of Beverly Hills, California does ordain as follows:
Section 1. The above recitals are all true and correct.Section 2. By the passage ofthis Ordinance, the City Council authorizes and levies special taxes within Improvement Area No. 1 and Improvement Area No. 2 pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Exhibit C to the Resolution of Intention as to Improvement Area No. 1 and the rate and method ofapportionment set forth in Exhibit D to the Resolution of Intention as to Improvement Area No. 2, 3 B0785-0001\3 147564v3.doc
which are incorporated by reference herein (each a “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method for such Improvement Area andin each fiscal year thereafter until payment in full of the Bonds issued by the District for such Improvement Area (including any bonds issued to refund the Bonds), payment of all costs ofthe publicfacilities and services authorized to be financed by the District for such Improvement Area, and payment of all costs of administering the District allocable to such Improvement Area.
Section 3. Each ofthe Mayor, the City Manager, the Assistant City Manager, the Director of Finance, or their written designecs (each, an “Authorized Officer”), acting alone, is herebyauthorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within Improvement Area No. I and Improvement Area No. 2, in the manner and as provided in the Rate and Method applicable to suchImprovement Area. The special tax rate levied on a parcel pursuant to each Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer and Tax Collector of the County of Los Angeles and tootherwise take all actions necessary in order to effect proper billing and collection of the special taxwithin each Improvement Area, so that the special tax shall be levied and collected in sufficientamounts and at times necessary to satisfy the financial obligations ofthe District for such Improvement Area in each fiscal year, and with respect to the special tax levied for facilities, until the Bonds issued by the District for such Improvement Area are paid in full, the facilities financed for such ImprovementArea have been paid for, and provision has been made for payment of all ofthe administrative costs of the District.
Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax for each Improvement Area, except as otherwise provided in Sections 53317.3 and 53317.5 ofthe Act and Section G of each Rate and Method. No other properties 4 B0785-0001\3 147564v3.doc
or entities within each of the Improvement Areas are exempt from the special tax unless the properties or entities are expressly exempted in the Resolution of Formation or in a resolution of consideration to levy a new special tax or special taxes or to alter the applicable Rate and Method or an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections ofthe special tax within each Improvement Area shall be used as provided for in the Act, the Rate and Method for such Improvement Area and the Resolution of Formation.
Section 6. The special tax within each Improvement Area shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penaltiesand the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as suchprocedure may be modified by law or by this City Council from time to time.
Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds issued by the District for an Improvement Area (including any bonds issued to refund such Bonds), together with any penalties and other charges accruing under thisOrdinance, arc not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on such Bonds (including any bonds issued to refund such Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax within the applicable Improvement Area, as authorized by the Act.
Section 8. The Mayor ofthe City shall sign this Ordinance and the City Clerk shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in the Beverly Hills Courier, a newspaper of general circulation published andcirculated in the City of Beverly Hills. 5 B0785-0001\3 147564v3doc
Section 9. The specific authorization for adoption of’ this Ordinance is pursuant to the provisions of Section 53340 of the Act.
Section 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer and Tax Collector of the County of Los Angeles. and to perform all otheracts which arc required by the Act, this Ordinance or by law in order to accomplish the purpose of thisO rd i na nce.
Section II. The City Clerk shall cause this Ordinance to be published at least once in a newspaper olgeneral circulation published and circulated in the City within fifteen (15) days after itspassage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and her certification, together with proof oI’publication,to be entered in the Book of Ordinances of the Council of this City.
Section 12. This Ordinance shall go into effect and be in full three and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.
Adopted:
SHARONA R. NAZARIAN, PSYDMayor olthe City of Beverly Hills, California
ATTEST:
_______________________
(SEAL)
1-lU MA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
-
LAURENCE S. WIENER NANCY 1-TUNT-COFFEY
City Attorney City Manager
6 B0785-000I\3 147564v3.doc