TO:Andrew P. Powers, City Manager
FROM:Tracy M. Noonan, City Attorney
DATE:May 20, 2025
SUBJECT: Initiation of Judicial Foreclosure
RECOMMENDATION:
1. Adopt resolution authorizing judicial foreclosure of delinquent special taxes, including penalties and interest, in Community Facilities District No. 1994-1 (Marketplace Public Pedestrian, Traffic Circulation and Parking Facilities) (CFD 1994-1).
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Sufficient funds are in the reserve account held by the CFD 1994-1 Trustee and costs and fees are recoverable through the judicial process.
BACKGROUND:
In 1994, the property owners of the Janss Marketplace (Marketplace) petitioned the City to form a Community Facilities District to help finance certain pedestrian and parking facilities. On or about July 12, 1994, City Council adopted Resolution No. 94-155 creating CFD 1994-1. Those proceedings resulted in the issuance of bonds and levy of special taxes to pay principal and interest on the bonds for CFD 1994-1. The property owners accepted a continuing property lien to secure the annual special tax levy. The original Special Tax Bonds were refinanced in 2012 and are now known as the 2012 Special Tax Refunding Bonds. Property owners are required to make Special Tax payments to the Ventura County Tax Collector (Tax Collector) twice a year, and such payments are then used by the City to make principal and interest payments on the bonds.
As part of the issuance of the bonds, the City entered into a Fiscal Agent Agreement with The Bank of New York as the Fiscal Agent, which provides for, among other things, the administration and payment of the bonds, including the
Initiation of Judicial Foreclosure
May 20, 2025
3 2
9 City’s covenants with and for the benefit of the owners of the bonds (Fiscal Agent Agreement).
DISCUSSION/ANALYSIS:
Special taxes on the parcels in CFD 1994-1 were due to the Tax Collector on or before February 3, 2025, and became delinquent on April 10, 2025. To date, those Special Tax installments remain outstanding. Section 5.14 of the Fiscal Agent Agreement requires the City to “diligently prosecute to judgment” an action to foreclose the lien of any Special Tax installment that becomes delinquent. The City Attorney is charged with commencing, or causing to be commenced, such proceedings, upon receiving notice of the delinquency.
Pursuant to the Mello-Roos Act, judicial foreclosure proceedings cannot be initiated until the City authorizes the commencement of such actions. The attached resolution (Attachment #1) authorizes the initiation of foreclosure proceedings against the parcels located in CFD 1994-1, and identified on Exhibit A of the resolution. Those parcels have been reported as delinquent as to the payment of special taxes. Those delinquent taxes must also be removed from the County tax roll. Staff, therefore, recommend adoption of the attached resolution.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Tracy Friedl, Assistant City Attorney
Attachments:
Attachment #1 – Resolution
CAO:650-90\tf\Legal Files\Judicial Foreclosure CFD 1994-1\Staff Report