City of StocktonCommunity Facilities District 2019-1 (Cannery Park II)Special Tax Bonds Series 2022City Council MeetingJuly 12, 2022Item 15.1
History of the District
District: North Stockton, South of Eight Mile Road and West of Highway 99 District Master Plan: Originally formed in 2005 with 450 acre Cannery Park District Split / Formation: 2019 (278+/- Remaining Acres) Current Status: Split off from CFD 2005-1 in 2019, CFD 2019-1 planned for 515 residential units, 206 multi-family units and approximately 128 acres of non-residential uses Development Progress:
Completed Homes: 32
Remaining Lots (LGI Homes): 355
Remaining Lots (KB Homes): 128
Total Homes: 515
2 Boundaries of CFD 2019-1
3 Tax Assessment & Debt Issuance: CFD 2019-1
Special Tax A (Capital Infrastructure): The new development will be assessed the Special Tax A to finance the public infrastructure. A portion of Special Tax A converts to a maintenance tax upon final maturity of any bonds. The maintenance tax will then escalate at up to 4.00% per year and remain in perpetuity. $1,600 per unit, Single-family residential
$7,500 per acre multi-family
$4,500 per acre commercial
$4,145 per acre light industrial
Special Tax B (Services): $585 per year for single-family homes and $386 per unit for multi-family units beginning in FY 2022-23. Special Tax B escalates up to 4.00% per year and will remain in perpetuity.
Debt Issuance: The current debt capacity is set at “not-to-exceed” $25 million with the term of the indebtedness through July 1, 2059 4 Financing Estimates
5 “Not-To-Exceed” Parameters:
Maximum Issue Size: $10,000,000
Maximum True Interest Cost: 6.50%
Item
Estimate
Estimated Par Amount of Bonds (1)
$9,410,000
Estimated Proceeds Available for Construction
$8,000,000
Estimated Total Debt Service (1)
$19,445,147
Reserve Fund (Maximum Annual Debt Service) (1)
$654,700
Estimated Average Annual Debt Service(1)
$647,332
Total Estimated Costs to Issue the Bonds
$341,196
“All-In” True Interest Cost(2)
5.76%
(1) Assumes market interest rates as of May 26, 2022
(2) Includes all the estimated costs to issue the bonds
6 Proposed Timeline
Timeline
Item
Week of July 11th
Due Diligence Call
Tuesday July 12th
City Council Consideration
Week of July 18th
Print and Post Preliminary Official Statement
August 2nd and 3rd
Pre-Pricing and Pricing
Week of August 8th
Print and Post Final Official Statement
Finalize all Documents
August 17, 2022
Close the Transaction
6 Documents for Consideration
Fiscal Agent Agreement: This agreement governs the terms and conditions of the bonds and the role and responsibilities of the Fiscal Agent.
Official Statement (Including Continuing Disclosure Agreement): Will be distributed as the primary marketing document to prospective bond purchasers. The agenda packet includes the Preliminary Official Statement deemed to be essentially final. A final version of this document, called the Final Official Statement, is estimated to be made available shortly after the bonds are sold and will reflect all the bond sale information.
Bond Purchase Agreement: Is a contract between the City and the Underwriter that provides the terms and conditions under which the underwriter will purchase the Series 2022 Bonds.
Construction and Acquisition Agreement: The developer is required to place certain infrastructure as a condition of development approval. This document lays out a list of improvements which may be financed from bond proceeds once accepted and acquired by the City after completion. 7 Staff Recommendation
Approve Resolution authorizing the issuance of Special Tax Bonds for and on behalf of City of Stockton Community Facilities District No. 2019-1 (Cannery Park II), approving and directing the execution of a fiscal agent agreement, approving the form of preliminary official statement, approving sale of such bonds, and approving other related documents and actions. 8 8