Resolution No.
STOCKTON CITY COUNCIL
______________________________________________________________________
RESOLUTION ORDERING CHANGES AFFECTING CERTAIN PARCELS WITHIN IMPROVEMENT AREA 2 OF COMMUNITY FACILITIES DISTRICT NO. 2018 -2 (WESTLAKE VILLAGES II), ESTABLISHING IMPROVEMENT AREA 3 AND IMPROVEMENT AREA 4 IN THE DISTRICT , AND DIRECTING RECORDING OF
AMENDED NOTICE OF SPECIAL TAX LIEN
On June 19, 2018, the Council adopted its “Resolution to Form a Community Facilities District and Two Improvement Areas and to Levy a Special Tax Therein to Finance Public Services and the Acquisition and Construction of Certain Public Facilities in and for Such District,” Resolution No. 2018- 06-19-1502-01 (the “Resolution of Formation”), which established Community Facilities District No. 2018 -2 (Westlake Villages II) (the “CFD”) and Improvement Area 1 and Improvement Area 2 (“IA2”) therein, pursuant to the Mello- Roos Community Facilities Act of 1982, as amended (the "Act"), Chapter 2.5 of Part 1 of Divisi on 2 of Title 5, commencing at section 53311, of the California Government Code; and
In the Resolution of Formation, the Council approved the boundary map for the CFD, which included depiction of the boundary of Improvement Area 1 and Improvement Area 2, and approved the levy of a special tax (the “Special Tax”) on land within Improvement Area 1 and Improvement Area 2 according to a Rate and Method of Apportionment of Special Tax for each respective Improvement Area, both of which were attached to the Resolution of Formation as Exhibit 2 and 3; and
By separate actions taken that same date, the Council conducted a special, landowner-voter election and obtained the unanimous approval of the qualified electors of CFD to the boundaries of the CFD, the RMA, and the amount of indebtedness authorized to be incurred for Improvement Area 1 and Improvement Area 2, among other things; and
Subsequent to the Resolution of Formation, the Council adopted its Resolution Ordering Change to Rate and Method for Improvement A rea No. 1 and 2 and Adjusting Improvement Area Boundaries for a Community Facilities District and Directing Recording of Notice of Special Tax Lien, Resolution No. 2020- 02-04-1501 (the “Resolution of Change”), on February 4, 2020, officially reforming the boundaries of Improvement Area No. 1 and Improvement Area No. 2 and amending the Rate and Method of Apportionment of Special Tax for Improvement Area 1 and Improvement Area 2; and
In connection with the foregoing Resolution of Change, the City caused to be recorded an Amended Notice of Special Tax Lien on February 20, 2020, in the Official Records of San Joaquin County, as Document No. 2020-021960; and Pursuant to written communication from the sole landowners within Improvement Area 2, authorized representatives of Richmond American Homes of Maryland, Inc., Meritage Homes of California, Inc., Lennar Homes of California, Inc., Stockton Westlake Investment LLC, and Stockton Westlake Marina, LLC, as the authorized representatives of the owners of all parcels of land within IA2 (the “Owner Group”), have requested that:
(i) the boundary of Improvement Area 2 be reduced, and certain parcels within Improvement Area 2 be established as parcels within respective newly created Improvement Area 3 (“IA3”) and Improv ement Area 4 (“IA4”), as depicted in the revised boundary map of the CFD as set forth in Exhibit 1 attached hereto (the “Amended Map”);
(ii) IA3 and IA4 be subject to the levy of the Special Taxes according to a newly established respective Rate and Method of Apportionment of Special Tax for IA3 and Rate and Method of Apportionment of Special Tax for IA4, attached hereto as Exhibit 2 and 3 (the “IA3 RMA” and “IA4 RMA”) , and
(iii) a bonded indebtedness and appropriations limit for IA3 and IA4 be established at $18,500,000 for IA3 and $90,000,000 for IA4.
On December 7, 2021, the City adopted a “Resolution of Consideration to Make Changes Affecting Certain Parcels Within Improvement Area 2 of Community Facilities District No. 2018 -2 (Westlake Villages II),” Resolution No. 2021- 12-7-1501 (the “Resolution of Consideration”) expressing the intent of this Council to authorize the foregoing changes, and set January 11,2022 as the date for a public hearing on the matters and said public hearing has been held as scheduled; and
At the hearing evidence was presented to this City Council on said matters before it, including a hearing report, attached hereto as Exhibit 4 (the “R eport”) as to the requested changes to be provided through the CFD matters related thereto, a copy of which is on file with the City Clerk, and this City Council at the conclusion of said hearing is fully advised in the premises; and
In the Certificate re Registered Voters and Landowners (the “Certificate”), which certificate is on file with the City Clerk (the “Clerk”), each member of the Owner Group has certified that, based upon his/her own personal knowledge and familiarity with the CFD, (a) there are no registered voters residing on any portion of Improvement Area 2 as currently configured, and (b) the five entities which are the record owners of all the land within such Improvement Area 2 are ( i) Stockton Westlake Investment LLC owning 340.258 acres; (ii) Stockton Westlake Marina, LLC owning 13.19 acres; (iii) Richmond American Homes of Maryland, Inc. owning 39.43 acres, Meritage Homes of California, owning 17.94 acres and Lennar Homes of California, Inc., owning 30.96 acres; and
There is on file with the City Council a unanimous consent of the Owner Group, which constitute landowner special election ballots based on acreage owned (the “Ballots”) for purposes of making the requested changes, consenting to adjustment of improvement area boundaries within the CFD, authorization of a Special Tax amount to be applicable to all parcels of land within a newly established IA3 and IA4 which Special Tax differs from that of Improvement Area 1 and Improvement Area 2, and providing for an indebtedness and appropriations limit applicable to IA3 and IA3; and
All Ballots have been submitted to and are on file with the Clerk, and collectively represent 100% consent, approval and votes in favor of making the proposed changes within the CFD; and
This Council wishes to approve and adopt the proposed Amended Map, IA3 RMA and IA4 RMA and the IA3 and IA4 indebtedness limits in furtherance of the accomplishment of the authorized purposes of the CFD as requested and approved by the Owner Group; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. This Council finds and determines that the foregoing recitals are all true and correct.
2. This City Council hereby further finds that the actions and determinations made herein are necessary and convenient to carry out the purpose of the Act and the financing contemplated by the CFD and are not otherwise prohibited by law and that the actions taken hereby are final and in accordance with the Act.
3. This Council hereby finds and determines that public convenience and necessity require that City undertake proceedings under the Act to accomplish the following changes to the CFD (i) revise the CFD map to reduce the boundary of Improvement Area 2 and establish IA3 and IA4 from land currently within Improvement Area 2, (ii) establish a rate and method of apportionment for IA3 and IA4 as set forth in the IA3 RMA and IA4 RMA, and (iii) establish an indebtedness limit for IA3 and IA4, all as requested by the Owner Group in order to more effectively accomplish the authorized purposes of CFD.
4. This Council hereby finds and declares that the unanimous consent submitted by the five entities owning all of the land within Improvement Area 2, being the qualified electors entitled to vote in the election, has been passed and approved by the equivalent of a unanimous “Yes” vote of said landowners, as the qualified voters , all in accordance with section 53329.6 of the Act, and the Council hereby declares as follows:
(i) The Amended Map, depicting the movement of certain parcels from Improvement Area 2 to Improvement Area 3 or Improvement Area 4, is hereby approved and adopted and for all future purposes of the CFD shall constitute the boundary map of the CFD and Improvement Area 2, Impr ovement Area 3 and Improvement Area 4, unless changed by future action of this Council, in accordance with the Act.
(ii) The IA3 RMA and IA4 RMA are hereby approved and adopted and for all future purposes of Improvement Area 3 and Improvement Area 4 shall constitute the Rate and Method of Apportionment of Special Tax of Improvement Area 3 and Improvement Area 4 unless changed by future action of this Council; in accordance with the Act, and such Rate and Method of Apportionment of Special Tax of Improvement Area 3 and Improvement Area 4 is now applicable to the calculation of the special taxes for Improvement Area 3 and Improvement Area 4, and this Council may levy special taxes therein as therein provided as a result of these proceedings.
(iii) The indebtedness limit for Improvement Area 3 and Improvement Area 4 is hereby established in the amount of $18,500,000 for IA3 and in the amount of $90,000,000 for IA4.
(iv) The appropriations limit for Improvement Area 3 and Improvement Area 4 is hereby established in the amount of $18,500,000 for IA3 and in the amount of $90,000,000 for IA4.
5. It is hereby found that all prior proceedings and actions taken by this Council pursuant to the CFD were valid and in conformity with the Act.
6. Within 15 days of the date hereof, the City Clerk shall execute and cause to be recorded in the office of the County Recorder of the County of Stanislaus, an amendment to t he Notice of Special Tax Lien as required by section 3117.5 of the California Streets and Highways Code.
7. The City Clerk, in coordination with Special Counsel, is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of San Joaquin an Amended Notice of Special Tax Lien for each Improvement Area within 15 days after the adoption of this resolution.
8. This Resolution shall take effect upon its adoption.
//
//
//
//
//
//
//
//
//
//
//
//
9. The City Manager is authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED January 11, 2022 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton