February 21, 2023 1
City Council Meeting
Item 7.1
Casa Estilo
Community Facilities District
Annexation No. 17-I
What is a Community Facilities
District (CFD)?
Community Facilities Districts
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Background
• Community Facilities Districts (CFD) are a type of
special tax district formed in order to finance the
construction of improvements or public services
• Legislation – Mello-Roos Community Facilities act of
1982 in response to Proposition 13
• Thousands of CFDs have been formed throughout
the State of California – resulting in funding billions of dollars of infrastructure
• Chula Vista has over 30 active CFD’s
The City of Chula Vista adopted
“CFD Goals and Policies”
Step 1 – Initiation by property owner, or City,
draft Rate and Method of Apportionment,
Boundary Map
Step 2 – Council adopts a Resolution of Intention
to Form a CFD
CFD Formation
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CFD Formation Process
Step 3 – City conducts a Public Hearing and calls
an Election of Property Owners
Step 4 – Council adopts a Resolution of
Formation and, if applicable, a Resolution to
incur bonded indebtedness
CFD Formation
CCComulick to add textCFD Formation Process (cont.)
Tax-exempt bonds are sold to fund
infrastructure, special tax levied against the
parcels to repay the bonds
Benefit: Provides public facilities concurrently
with the need instead of waiting for
collection of development impact fees
CFDs in Chula Vista
CCComulick to add textBonded CFDs
Funds items like landscape, street lighting and
open space maintenance. These are in
perpetuity. Each district has a budget that
Council votes annually on the amount to levy
Benefit: Homeowners pay for and receive
enhanced maintenance that cannot be
funded via the General Fund.
CFDs in Chula Vista
CCComulick to add textMaintenance CFDs (non-bonded)
CFD 17-I
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CFD 17-I Western Chula Vista
Deferral Program
Created in 2016 to incentivize investment in
the western portion of the City
Infill redevelopment projects are financially
challenging: high construction costs and high
equity requirements by lenders
CFD 17-I
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CFD 17-I Western Chula Vista
Deferral Program (cont.)
Annexation into CFD 17-I allows developers to
defer certain Development Impact Fees
Fees are deferred for 10 years and payments
are made for the subsequent 20 years, for a
total of 30 years
The obligation runs with the land and is
secured by a lien on the land.
CFD 17-I Activity To-Date
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Six separate
properties have
annexed to-date
516 multi-family
units
Investment of over
$100 million
Council extended
the program until
March 2026
Item 7.1 - Casa Estilo
Property Location
Sesame Place /
Amphitheatre
Village 3
Quarry
MSCP Preserve Area
Industrial
Industrial / Residential
Single Family
Residential
Gas
Station
Office
Building
West Coast
Home Loan
Bank of America
Jack-in-the-Box
Boundary Map
RECOMMENDATIONS
1. Hold the Public Hearing and Special Election
2. If affirmative vote, Adopt the Resolution
certifying the results of a Special Election in that
territory designated as Community Facilities District
No. 17-I, Annexation No. 2023-02 and adding such
territory to Community Facilities District No. 17-I.