REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:October 22, 2024
Subject:Annexation No. 22 Into Community Facilities District No. 2015-2 (Maintenance Services) for TPM 37710 (Blazed Utopia)
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 22) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN.
Background
On September 22, 2015, the City Council approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore (the “CFD No. 2015-2” or “District”) for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.
RA & B Development, LLC (the “Owner”), owns 1.35 gross acres of a vacant commercial lot within the City. The Owner has requested that the City assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with the maintenance of public improvements. The improvements proposed to be maintained include items such as landscaping and street maintenance.
The landowner has advised the City that they would like the area described in Exhibit “B” of the Resolution of Intention to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit “C.” Annexation No. 22 Into Community Facilities District No. 2015-2
The original area proposed within Annexation No. 22 will encompass a 17,037-square-foot cannabis facility. The territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 25. The property is located northeast of the intersection of Minthorn St and Spring St, east of Collier Ave, and southwest of the Interstate 15 freeway. The proposed total maximum tax rate is $5,569 per acre per year for Special Tax A and $755 per acre per year for Special Tax B.
The maximum annual tax rates are proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. See Exhibit 3 for a maintenance exhibit illustrating which services are being maintained by the CFD.
The Owner has agreed to the annexation into the CFD and submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello- Roos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
The next step in annexing the property to CFD No. 2015-2 is to publish a notification of the proposed district along with the “Resolution of Intention” and Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on December 10, 2024, and at that time, the Council will formally consider approval of Annexation No. 22.
Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to the buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be on undeveloped property within the Tax Zones. Once developed, the Special Tax A for Tax Zone 25 will generate $7,519 for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibits A - G
Attachment 3 - CFD Maintenance Exhibit
City Manager’s Office