It is recommended that the City Council hold the special elections and take the following actions relating to Community Facilities District No. 5A (North Coyote Valley Facilities) (the “CFD No. 5A”) and Community Facilities District No. 5B (North Coyote Valley Services) (the “CFD No. 5B”).
1) Receive results of election from City Clerk for the Special Election for CFD No. 5A.
2) Adoption of a Resolution declaring the results of the special election and directing the recording of the notice of the special tax lien for CFD No. 5A.
3) Adoption of an ordinance levying special taxes within CFD No. 5A.
4) Receive results of election from City Clerk for the Special Election CFD No. 5B.
5) Adoption of a Resolution declaring the results of the special election and directing the recording of the notice of the special tax lien for CFD No. 5B.
6) Adoption of an ordinance levying special taxes within CFD No. 5B.
CEQA: Resolution No. 69957.
BACKGROUND
On October 24, 2000, the City Council approved the rezoning for the properties of Coyote Valley Research Park (CVRP) for the development of 6,600,000 square feet of campus industrial uses for 688 acres of land that CVRP owns within the 1,444-acre North Coyote Valley Campus Industrial Area. As a condition of its development, CVRP is required to fund and construct the phase 1 flood detention facilities (north of Bailey Avenue) and a fire station which also benefit other properties within North Coyote Valley.
On April 3, 2001, the City Council adopted a Resolution of Intention to establish CFD No. 5A and to levy facilities special taxes on the properties within the district. The City Council also adopted a Resolution of Intention to establish CFD No. 5B and to annually levy services special taxes on the properties within the district.
On May 1, 2001 the City Council took the following actions:
· Conducted the Public Hearings on the proposed formation of CFD No. 5A and CFD No. 5B.
· Adopted a Resolution of Formation for CFD No. 5A authorizing the levy of a Special Tax therein, preliminarily establishing an appropriations limit therefor and submitting the levy of the Special Tax and the appropriations limit to the qualified electors thereof.
· Adopted a Resolution calling a special election of property owners in the proposed CFD No. 5A to be held on June 19, 2001.
· Adopted a Resolution of Formation for CFD No. 5B authorizing the levy of a Special Tax therein, preliminarily establishing an appropriations limit therefor and submitting the levy of the Special Tax and the appropriations limit to the qualified electors thereof.
· Adopted a Resolution calling a special election of property owners in the proposed CFD No. 5B to be held on June 19, 2001.
On behalf of the City Clerk, Jones Hall, the City’s special counsel for the CFD, mailed ballots and the election material on June 5, 2001 for this special election. The ballots were mailed to qualified electors and returned to the City Clerk prior to this Council meeting. It is recommended the City Council receive the results of the tabulation of ballots for CFD No. 5A and CFD No. 5B.
Immediately following the City Clerk’s announcement of the
tabulation of ballots, it is recommended the City Council declare the results
of the special election and, if the voters approve the special taxes, direct
the recording of the notice of special tax lien. The latter action can only occur when two-thirds of the returned
ballots by the qualified electors in the district approve of the special tax,
with the number of votes for each property owner (qualified elector) based on
the acreage of their parcels within the CFD.
Following is a listing of the remaining actions required to levy the special taxes for CFD No. 5A and CFD No. 5B:
Action: Date:
· City Council holds CFD elections for CFD No. 5A and CFD No. 5B This action
concurrently, announces results, and adopts Special Tax Ordinance
· City records “Notice of Special Tax Lien” on properties 6/20/01
CFD No. 5A (North Coyote Valley Facilities)
Assuming two-thirds approval of the special tax, it is recommended that the City Council adopt an ordinance levying the special taxes within CFD No. 5A. The facilities special tax is levied at the rate and in accordance with the Rate and Method adopted by the City Council in the Resolution of Formation of the District. The facilities special tax is levied to pay for the costs of the Phase 1 flood detention facilities and fire station which is to be initially funded and constructed by CVRP concurrent with their development. At the time a building permit is obtained for commercial/industrial development, the property owner would make a one-time payment of the facilities special tax based on the building square footage. For housing development, if it happens, payment would be due at the time of approval of the final tract map.
The facilities special tax is estimated to be approximately $3.97 per square foot of building area for Development Group 1 and $3.71 per square foot in all other Development Groups. The special tax escalates at 7.1% per year until paid or until such time as the amount doubles. The tax is capped at approximately $7.94 per square foot of developed building area in Development Group 1 and at approximately $7.42 per square foot in all other Development Groups. It is estimated that the amount of tax will reach this cap in 2013.
CFD No. 5B (North Coyote Valley Services)
Assuming two-thirds approval of the special tax, it is recommended that the City Council adopt an ordinance levying the special taxes within CFD No. 5B. The services special tax is levied at the rate and in accordance with the formula set forth in the Resolution of Formation of the District. The services special tax is levied to pay for the cost of median landscaping maintenance, litter maintenance of the flood detention facilities, landscaping maintenance at grade separations, landscape and park trail maintenance abutting the flood detention facilities, maintenance of bridge lighting, and maintenance of special roadway pavement. At the time a building permit is obtained, the property owner would become obligated on an annual basis to pay the services special tax. For housing development, if it happens, payment would start on an annual basis at the time of approval of the final tract map.
The services special tax will not exceed $0.75 per improved square foot. The actual amount levied per year will be based on the City’s estimate of the costs of services, for the upcoming year and the amount of either improved square footage for which a Building Permit has been issued or projected improved square footage for which a Final Tract Map for Housing has been issued over which to spread those costs.
The Notices of Public Hearing were published once in the San José Mercury News and mailed to all property owners within CFD No. 5A and CFD No. 5B. Ballots were mailed on June 5, 2001.
The proposed CFD No. 5A and CFD No. 5B and the facilities and services that both CFDs are financing, have been coordinated with the Departments of Public Works, Planning, Building and Code Enforcement, Fire and Finance; the Offices of the City Attorney, Economic Development, and the City Manager; Santa Clara Valley Water District, California Regional Water Quality Control Board, California Division of Safety of Dams, U.S. Army Corps of Engineers, California Department of Fish and Game, Jones Hall (special counsel), Berryman & Henigar (tax consultant), and E. Wagner & Associates (financial consultant).
There will be no cost to the City. Funds for the improvements will be advanced by the developer Coyote Valley Research Park (CVRP), and reimbursed from CFD 5A. Maintenance services for median landscaping, litter maintenance of the flood detention facilities, landscaping maintenance at grade separations, landscape and park trail maintenance abutting the flood detention facilities, maintenance of bridge lighting, and maintenance of special roadway pavement will be paid through taxes collected by CFD 5B.
Resolution No. 69957.
DARRELL DEARBORN
Senior Deputy City Manager