CITY OF MENIFEE
SUBJECT: Proposed Change to Community Facilities District No. 2022- 3, Legado, by Lennar Homes
MEETING DATE: February 25, 2025
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Review the proposed changes for Community Facilities District (“CFD”) No. 2022-3, Improvement Area 1, by Lennar Homes to amend the financing plan for certain public improvements within the development and recommend submittal to the City Council for consideration.
DISCUSSION
In early 2022, BLC Fleming initiated plans to form a CFD that would include 1,022 homes within a residential development known as Legado located northwest of Antelope Road and Chambers Avenue and south of Rouse Road. In August 2022, the City Council approved Resolution 22-1187 declaring its intention to establish CFD 2022-3, Legado; and in October 2022 the City Council approved Ordinance 2022-353 authorizing the levy of special taxes within CFD 2022-3.
The Legado development ultimately was divided into three separate improvement areas (“IAs”), known as IA1 (491 homes), IA2 (201 homes) and IA3 (330 homes). Last year, BLC Fleming entered into a contract to sell the project to Lennar Homes in three separate transactions that correspond with the three separate improvement areas.
Lennar Homes has closed on the land in IA1 and is under contract to purchase IA2 and IA3. When Lennar purchased IA1 it revised the product line to offer larger homes. The original product line had homes ranging from 1,300 square feet to 3,500 square feet, whereas the revised product line has homes ranging from 1,547 square feet to 4,184 square feet. Increasing the home sizes has led to a change in the anticipated sale price of the homes. With these changes, the developer is seeking to amend the Rate and Method of Apportionment (the “RMA”), which denotes the tax zone each home falls in and delineates the special taxes that each home would be charged. The revised RMA ensures the tax rate remains consistent at 2% among all the homes.
City of Menifee Staff Report
Proposed Change to Community Facilities District No. 2022-3, Legado February 25, 2025
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FISCAL IMPACT
There is no fiscal impact to the General Fund. The developer has submitted a $70,000 deposit to cover the cost of processing this change request.
ATTACHMENTS
1. CFD 2022-3 IA1 Change Proceeding Proforma Summary
2. CFD 2022-3 Project Map
3. CFD 2022-3 IA1 Change Proceeding Proforma
4. CFD 2022-3 Amended Boundary Map
5. CFD 2022-3 IA1 Proforma (Original)
6. CFD 2022-3 IA1 Change Proceeding Request