Agenda Item No: K.10
AGENDA REPORT
DATE: November 18, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025 -226 PW Annex Territory Courage Investments Warehouse and Authorize the Levy of Special Taxes
Declaring the City of Fairfield’s Intention to Annex Territory (Courage Investments Warehouse Project) to Community Facilities District No. 20122 and Authorizing the Levy of Special Taxes Therein for Annexation No. 71
Funding Source: N/A
Contact: Valerie Standfill, (707) 428-7055
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The adoption of the attached resolution will begin the proceedings for the annexation of certain property, known as Courage Investments Warehouse Project, to Community Facilities District 20122 (CFD 20122). CFD 20122 was established as an annexable district to provide funding to offset the increased cost for public safety services, open space operation, and park maintenance created by new development.
DISCUSSION
On November 20, 2012, the City Council adopted Resolution No. 2012 -233, establishing CFD 2012-2 under the Mello-Roos Act with the intention that future development within the City of Fairfield would annex to this district. The special taxes collected from the property owners within the District are used to fund public safety services, open space operation, and park maintenance.
The property proposed for annexation is owned by Courage Investments #2, LLC, a California limited liability company and is located north of Courage Drive and west of North Watney Way within the boundary of Assessor’s Parcel Number (APN) 0028 -761-320 and 0028 -761-350, as
shown on Exhibit A. The development of the property will be a light industrial warehouse.
Development of this property will change the property’s characteristics and manner in which the property will be used, thereby creating a need for more services funded by CFD 20122.
The City contracts w ith Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation process. This process is a specialty service that the City has contracted out since 1995, on an individual consultant services basis for each development requiring annexation into a MelloRoos community facilities district.
Adoption of the Resolution of Intention is the first step to annexing this property to CFD 20122.
This will be the 71st annexation to the district. The resolution also establishes January 20, 2026, as the public hearing date for the final consideration of the annexation of the property to CFD 20122. Once the annexation is complete, the property owners will be required to pay annual special taxes for the property be ginning in fiscal year (FY) 20262027, as itemized on their property tax bill in accordance with the rate set forth in the CFD 20122 Rate and Method of Apportionment of Special Tax.
The CFD 20122 Rate and Method of Apportionment was established as part of the formation of the District and fixed FY 20122013 as the base year for the annual special tax rate as shown in Exhibit B. Since the formation, special taxes have increased based on the cost inflator allowed in the original formation documents. The special tax rate for the District for FY 2025 -2026 is shown on Exhibit C.
FINANCIAL IMPACT
The anticipated annual revenue to be received by the City from CFD 20122 (Fund 332) for this annexation is estimated to be $4,006.05, which is based on the FY 20252026 maximum special tax rate of $0.029 per net square foot of lot area for 134,164 square feet for Industrial property.
The CFD 20122 maximum special tax rates incl ude an automatic annual consumer price index (CPI) adjustment. The process for the annexation is funded by the developer, and no general fund money is used for this effort.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
If the council has any questions concerning the required annexation of this development, this item may be rescheduled until the next council meeting to allow staff to provide the necessary background information. However, if the annexation is not approved, the conditions of approval for this development would not be fulfilled and the development process would cease.
COORDINATED WITH
N/A
STAFF CONTACT
Valerie Standfill, Management Analyst
(707) 428-7055
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A – Boundary Map
Attachment 4: Exhibit B – Rate and Method of Apportionment of Special Tax Attachment 5: Exhibit C – Maximum Special Tax Rate