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HomeMy WebLinkAbout4.6 Update on Community Facilities District 2015-1 (Dublin Crossings) (2)STAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 4.6 DATE:April 6,2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Update on Community Facilities District 2015-1 (Dublin Crossings) Prepared by: Colleen Tribby, Assistant City Manager EXECUTIVE SUMMARY: The City Council will receive an update on Community Facilities District 2015-1 (Dublin Crossings) in preparation for the next bond issuance. STAFF RECOMMENDATION: Receive the report. FINANCIAL IMPACT: None. DESCRIPTION: Background On June 2, 2015 the City Council adopted a series of resolutions forming the City’s first Community Facilities District (CFD), in the area now known as Boulevard. The CFD No. 2015-1 (Dublin Crossing) property is bounded by Dublin Boulevard to the south, Scarlett Drive to the west, Arnold Road to the east, and Camp Parks property to the north. At the same meeting, the City Council deemed it necessary for the CFD to incur debt to finance the construction of certain public capital improvements, secured by the levy of a special tax within the CFD. The June 2, 2015 Staff Report is included here as Attachment 1. The financing program is structured to take place in phases related to designated subareas of the CFD, known as Improvement Areas. Since the CFD formation, as the property has developed and the infrastructure built, the City has issued two series of bonds on behalf of the CFD; the first on August 15, 2017 in the amount of $32,740,000 for Improvement Area No. 1, and the second on June 24, 2019 in the amount of $37,745,000 for Improvement Area No. 2. The total amount of bonds authorized in the entire CFD is not to exceed $150,000,000. All bonds are secured by and 98 Page 2 of 3 repaid from the proceeds of special taxes levied upon only the taxable parcels in the specific Improvement Areas and are not obligations of the City. Staff is currently working with the CFD financing team (identified below) to prepare for a third bond issuance, which will occur in the coming months, and will be brought to the City Council for authorization. CFD Team From 2013 to 2017, Staff assembled, via various Requests for Proposals/Qualifications, a team of expert consultants to assist in the CFD formation process and subsequent bond sales. This team, with minor changes noted below, will continue to assist with future bond sales related to the CFD, via newly executed agreements. The following is a list of the consultants and advisors selected by the City and a description of their services. 1. Financial Advisor (FA) – Fieldman, Rolapp and Associates (James Fabian) Assists with all aspects of the proposed CFD formation and serves as ongoing FA on bond issuances. 2. Bond Counsel / Disclosure Counsel – Jones Hall (David Fama and James Wawrzyniak) Prepares associated legal documents, and prepares continuing disclosures to the bond market regarding any bond issues. Stephanie Downs, from the City Attorney’s office, will provide issuer’s counsel services. 3. Special Tax Consultant – Goodwin Consulting Group (Susan Goodwin) Collects various data on the tax base in the CFD and assists in the development of appropriate special tax calculation and allocation methods. 4. Market Absorption Consultant – RCLCO/Real Estate Advisors (Robert Gardner) Performs studies of the proposed development within the CFD, and prepares estimates, based on specified economic and demographic data, of the rates at which the finished products (lots or completed buildings or units) can be sold, relative to current and future market conditions. 5. Appraiser – Seevers Jordan Ziegenmeyer (Kevin Ziegenmeyer) Performs appraisal of the proposed CFD property in order to estimate its market value subject to the hypothetical condition improvements to be financed by the CFD. The estimate of value also considers the impact of the lien of the special tax securing the bonds. 6. Underwriter – Hilltop Securities (Craig Bettencourt) Assists in the structuring of the bond issue; markets and underwrites the bonds. The City initially selected Craig Bettencourt of Prager & Company for the first two bond sales. Craig will continue to provide these services through Hilltop Securities. 99 Page 3 of 3 STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) June 2, 2015 Staff Report (without attachments) 100 $WWDFKPHQW 101 102 103 104