RES-2006-159RESOLUTION N4. 2006-159
A RESOLUTION OF THE CITY COIINCII. OF THE CITY
OF ANAHEIIVI OF IN'fENTI01~ TO ESTABLISH A
COMMUNITY FACILITIES DISTRICT AND TO
AX]'THORIZE T13IEE LEVY OF SPECIAL TAXFS
WI~REAS, the City Counca! (the "City Council") of the City of Anaheim (the "City'
has received a written petition {the "Petitia~n") from CREAINexus Anaheim Corners, LLC (the
"Landowner") requesting the institutiaa of proceedings for the establishment of a community
facilities district {the "Community Facilities District';
WHEREAS, the Landowner has represented and warranted to the City Council that the
Landownez is the owner of 100% of the area of latbcl proposed to be included within the
Commutity Facilities District;
WHEREAS, under the Mello-Roos Community Facilities Act of 1982 (the "Act"}, the
City Council is authonzzed to establish the Community Facilities District;
WHEREAS, Sectloa 53314.9 of the Act provides that, at any time either before or after
the formation of a community facilities district, the legislative body may accept advances of
funds from any source, including, but not linuted to, private persons or private entities and may
provide, by resolution, for the use of those funds for any authorized purpose, including, but rat
limited to, paying any cost incurred by the local agency in creating a community facilities district;
WH>~REAS, Section 53314.9 of the Act furFher provides that the legislative body may
entu into an agreement, by resolution, with the person or entity advancing tlu funds, to repay all
or a portion of the funds advanced, as determined by the legislative body, with or without
interest, under all the following conditiams: {a) the proposal bo repay the funds is included in
both the resolution of intention to establish a community facilities district adopted. pursuant to
Section 53321 of the Act and in the resolution of formation to establish a community facilities
district pursuant to Section 53325.1 of the Act, {b) any proposed special tax is approved by the
qualified electors of the community facilities district pursuant to the Act, and (c) any agreement
shall specify that if the qualified electors of the community facilities district do not approve the
proposed special tax, the local agency shall return array funds which have not been committed far
any authorised purpose by the tune of the election to the person or entity advancing the funds;
WHEREAS, the City and the Landowner ate entering into a Deposit and Reimbursement
Agreement, dated as of Tuly 11, 2006 (the "Deposit Agreemesnt'~, that provides for the
advancement of funds by the Landowner to be used to pay oasts incurred in coanectaon with the
establishmenY# of the Community Facilities District and the issuance of special tax bonds thereby,
and provides for the reimbursement to the Landowner of such fiends advanced, without interest,
from the proceeds of any such bonds issued by the Community Facilities District; and
WHEREAS, the City desires to include in this Resolution, in accordance with Section
53314.9 of the Act, the proposal to repay funds pursuant to the Deposit Agreement;
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41993-23 QHL
NOW, THEREFORE, the City Council of the City of Anaheim does hereby resolve,
determine and order as follows:
Section 1. The City Council hereby finds that the Petition is signed by the requisite
number of owners of land proposed to be included in the Community Facilities District.
Section 2. The City Council proposes to establish a community facilities district under
the terms of the Act. The boundaries of the territory proposed for inclusion in the Community
Facilities District are deescribed in the rnag showing the proposed Community Facilities District
(the "Boundary Map"} on file with the City Clerk of the City (the "City Clerk', which
boundaries are hereby preliminarily approved and to which map reference is hereby made for
further particulars. The City Clerk is hereby directed to sign the original Boundary Map and
record, or cause to be recorded, the Boundary Meg with all proper endorsements thereon in the
office of the Orange County Recorder within 15 days of the data of adoption of this Resolution,
all as required by Section 3111 of the California Streets and Highways Code.
Section 3. The name proposed far the Community Facilities District is "City of Anaheim
Community Facilities District No. 05-2 (Stadium Lofts},"
Section 4, The public facilities (the "Facilities'"} proposed t+a be financed by the
Community Facilities District pursuant to the Act are described wader the caption "Facilities" on
Exhibit A hereto, which is by this reference incorporated herein. Those Facilities proposed to be
purchased as completed public facilities arc described under the caption "Facilities to be
Purchased" on Exhibit A hereto. The services (the "Services' proposed to be financed by the
Community Facilities District pursuant to the Act are described under the caption "Services" on
Exhibit A hereto. The incidental expenses proposed to be incurred are identified under the
caption "Incidental Expenses" on Exhibit A hereto. All or any portion of the Facilities may be
financed through a financing plan, including, but not limited to, a leap, lease-purchase or
installment-purchase arraxigement.
Section 5. Except where fiords are otherwise available, a special tax sufficient to pay far
all Facilities and Services, secured by recordation of a continuing lien against all nonexempt real
property in the Community Facilities District, will be annually levied within the Community
Facilities District. The raze and method of appottioxtmeat of the special tax (the "Batt and
Method"}, in sufficient detail to allow each landowner within the proposed Community Facilities
District to estimate the maximum amount that he or ahc will have bo pay, is described in Exhibit
B attached hereto, which is by this reference incorporated herein, The conditions under which
the obligation to pay the special tax naay be prepaid and permanently satisfied are specified in the
Rate and Method. The special tax will be collected in the setae matuter as ordinary ad valorem
property taxes or in such other manner as the City Council shall determine, including direct
billing of tfie affected property owners.
the tax year after which no further special tax to pay for public facilities will be levied
against any parcel used for private residential purposes is specified in the Rate and Method.
Under no circumstances shall the specie! tax #o pay far public facilities levied against any parcel
used for private residential purposes be increased as a consequence of delinquency or default by
the owner of any other parcel or parcels within the t;ommztnity Facilities District by mare than
US_WSST250029529.3
41943-23 C3H1 2
! 0%. For purposes of this paragraph, a parcel shall be considered "used for private residential
purposes" net later than the date on which an occupancy permit for private residential use is
issued.
Section 6. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to
itself the right and authority to allow any interested owner of property within the Community
Facilities District, subject to the provisions of. said Section 53344.1 and to those conditions as it
may impose, and any applicable prepayment penalties as prescribed in five bond indenture or
comparable instrument or document, to tender to the Community Facilities District treasurer in
full payment or part payment of arty installment of the special taxes or the interest or pcnahies
thereon which may be due or delinquent, but for which a bill has been received, any bond or
other obligation secured thereby, the bond or other obligation to be taken at par and credit to be
given fnr the accnied interest shown thereby computed to the date of tender.
Section 7. The City Council hereby fixes 'ftixesday, August 22, 2006, at 5:30 p.m., or as
soon thereafter as the City Council may reach the matter, at 200 South Anaheim Boulevard,
Anaheim, California, as floc time and plscx when and where the City Council will conduct a
public hearing on the establishment of the Commu~ty Facilities District.
Section 8. The City Clerk is hereby directed to publish, or cause to be published, a notice
of said public hearing one time in a newspaper of general circulation published in the area of the
Community Facilities District. The publicatiot- of said notice shall be completed at least seven
days prior m the date herein fixed far said hearing. Said notice shall contain the information
prescribed by Seetian 53322 of the Act.
Section 9. The kvy of said proposed special tax shall be subject to the approval of the
qualified electors of the Community Facilities District at a special elociion, The proposed voting
procedure shall be by mailed or hand-delivered ballot among the landowners in the Community
Facilities District, with each owner having one vote for each acre or portion of an acre such
owner owns in the Community Facilities District.
Section 10. Each officer of the City who is or will be responsible for providing one or
more of the proposed types of Facilities or Services is hereby directed to study, or cause to be
studied, the proposed Community Facilities District and, at ar before said public hearing, file a
report with the City Council containing a brief description of the public facilities and services by
type which will in his or hex opinion be required to adequaxely meet the needs of the Community
Facilities District, and his or her estimate of the cost of providing the Facilities and Services.
Such officers are hereby also directed to estimate the fair cad reasonable cost of the Facilities
proposed to be purchased as completed public farcilities and of the incidental expenses proposed
to be paid. Such report shall be made a part of the record of said public hearing,
Section 11. The Landowner has heretofore advanced certain funds, and may advance
additional funds, which have been or may be used to pay casts incurred in connection with the
establishment of the Community Facilities District and the issuance of special tax bonds thereby.
The City Council proposes to repay all or a portion of such funds expended for such purpose,
solely from the proceeds of such bonds, pursuant to the Deposit Agreement. The Deposit
Agreement is hereby incorporated herein as though set forth in full herein.
t,'S WBST:26Q024529.3
x1993-23 CiKI
SeM~lon 1~. The ofTic~s, employees and agents of rho City ere hereby authrni~ed and
directed to take all actions and do all thugs which they, or any of them, msy deem necessary or
desirable to accomplish the proposes of this Resolution and not inconsistent with the provisions
hereof.
Section 13. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Anaheim on July
11, 200b.
Mayor
ATTEST:
C ty Clerk
AYES: Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Chavez
NOES: None
ABSTAIN: None
ABSENT: None
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41993-23 GHl
TXHIBIT A
FACILITIES, FACILITIES TO BE PURCIiA3ED, SERVICES AND
INCIDENTAL EXPENSES
Facilities
The types of facilities to be financed by the Community Facilities Distract are street
improvements, including grading, paving, pubs and gutters, sidewalks, street signalization and
signage, street lights and parkway and landscaping related thereto, sewers, storm drains, water
facilities, sanitation faci]ities, electric u#IIity facilities, public parks and recreation facilities,
police facilities and equipment, fire facilities and equipment, library facilities and equipment and
land, rights-of--way and easements necessary for any of such facilities.
Faccilitfes to be Parchaeed
The types of facilities to be purchased as completed facilities ate street improvements,
including grading, paving, curbs and gutters, sid~ewallcs, street signalizatian and signage, street
lights and parkway and landscaping relatied ~ereta, sewers and storm drains.
Services
The types of services to be funaaced by the Community Facilities District are police
protection services, fire protection and suppression services and paramedic services,
Incidental Expenses
The incidental expenses proposed to be incurred include the following
(a} the cost of planning and designing public facilities to be financad,
including the cost of environmental evaluations of those facilities;
(b} the costs associated with the creation of the Communty Facilities District,
issuance of bonds, determination of the amount of taxes, collection of taxes, payment of
taxes, or costs otherwise incurred in order to carry out the authorized purposes of the
Community Facilities Tistrict; and
(c} any other expenses incidental to the constnu~tion, completion, and
inspection of the authorized work.
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41993,23 GHI l~-1
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF ANAHEIM COMMUNITY FACII;TTIES DLSTRiCT NO.86-2
(STADIUM LOFTS)
A Special Tax shall be levied on all Assessor's Parcels in the City of Anaheim Community Facilities
District No. 06-2 {Stadium Lofts} ("CFD No. 06-2")and collected each Fiscal Year commencing in
Fiscal Year 2007-08, in an amount determined by the Council through the application of the
procedures described below. All of the real property in CPD No. 06-2, unless exempted by law or by
the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein
provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the number of acres of land area of an Assessor's Parcel as
shown on an Assessor's Parcel Map, or if the land area is nat shown on an Assessor's Parcel
Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or
other recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter
2.5 of Part 1 of Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
related to the administration ofCFD No. 05-2: the costs of computing the Special Taxes and
preparing the annual Special Tax collection schedules {whether by the City or designee
thereof or both); the costs of collecting the Special Taxes (whether by the County, the City,
through foreclosure proceedings, or otherwise); the costs of remitting the Special Taxes to
the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties
required of it under the Indenture; the costs to the City, CFD No. 06-2 or any designee
thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 06-2
or any designee thereof of complying with City, CFD No. 06-2 or obligated persons
disclosure requirements associated with applicable federal and state securities laws and of the
Act; the costs associated with preparing Special Tax disclosure statements and responding to
public inquiries regarding the Special Taxes; the costs of the City, CFD No. 06-2 or any
designee thereof related to an appeal of the Special Tax; the costs associated with the release
of funds from an escrow account; attorney's fees and other costs related to commencing and
pursuing to completion any foreclosure of delinquent Special Taxes; the costs of City staff
time and reasonable overhead relating to the administration ofCFD No. 06-2; and any other
costs or third parry expenses estimated or advanced by the City or CFD No. 06-2 for any
other administrative purposes of CFD No. 06-2.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
City of Anaheim June a9, ?006
CFD Na 06-Z (Stadium Lo,Jts} Page 1
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel number.
"Assigned Special Taa A" means the Special Tax A for each Land Use Class of Developed
Property, as determined in accordance with Section C.1 below.
"Backup Special Taz A" means the Backup Special Tax A applicable to each Assessor's
Parcel of Residential Property, as determined in accordance with Section C.1 below.
rrBonds" means any bonds or other debt {as defined in Section 53317{d} ofthe Act), whether
in one or more series, issued by CFD Na. 06-2 under the Act.
"CFD Administrator" means an official of the City who is responsible far determining the
Special Tax Requirement for Facilities and the Special Tax Requirement for Services and
providing for the levy aad collection of the Special Taxes.
"CFD No. 06-2" means the City of Anaheim Community Facilities District No. 06-2
{Stadium Lofts).
"City" means the City of Anaheim.
"Consumer Price Indea" means, for a Fiscal Year, the annual percentage change in the
Consumer Price Index published by the U.S. Bureau of Labor Statistics for "A!1 Urban
Consumers" in the Los Angeles -Anaheim -Riverside Area, measured as of the month of
December in the calendar year which ends in the previous Fiscal Year. In the event this
index ceases to be published, the Consumer Price Index shall be another index as determined
by the CFD Administrator that is reasonably comparable to the Consumer Price Index.
"Council" means the City Council of the City, acting as the legislative body ofCFD No. 06-
2.
"County" means the County of Orange.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property or Public Property, for which a building
permit for new construction was issued after January 1, 2005 and prior to March 1 of the
prior Fiscal Year.
"Final Map" means (i) a final map, or portion thereof, approved by the City pursuant to the
Subdivision Map Act {California Government Code Section 66410 et seq.) that creates
individual lots or parcels for which building permits may be issued, or (ii} for condominiums,
a final map approved by the City and a condominium plan recorded pursuant to California
Civil Code Section 1352 creating such individual lots or parcels.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
City of Anaheim June 29,1006
CFD No. 06-2 (SYadium Lo, fkt) Page 2
. ~ ..
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended andlor supplemented from time to
time, and any instrument replacing or supplementing the same.
"Land Use Class" means any of the classes listed in Table 1.
"Maximum Special Tai" means the Maximum Special Tax Aand/or Maximum Special
Tax B, as applicable.
"Maximum Special Tax ~A" means, with respect to an Assessor's Parcel of Taxable
Property, the Maximum Special Tax A, determined in accordance with Section C.1 below,
that can be levied in any Fiscal Year on such Assessor's Parcel.
"Maximum Special Tax B" means, with respect to an Assessor's Parcel of Developed
Property, the Maximum Special Tax B, determined in accordance with Section C.2 below,
that can be levied in any Fiscal Year on such Assessor's Parcel.
"Non-Residential Floor Area" means for Non-Residential Property the total of the gross
area of the floor surfaces within the exterior wall of the building, not including space devoted
to residential dwelling units, stairwells, separate storage areas, required corridors, public
restrooms, elevator shafts, light courts, vehicle parking and areas incident thereto,
mechanical equipment incidental to the operation of such building, and covered public
pedestrian circulation areas, including atriums, lobbies, plazas, patios, decks, arcades and
similar areas, except such public circulation areas or portions thereof that are used solely for
commercial purposes. The amount of floor area shall be determined by reference to the
building permit(s) issued by the City, or if square footage is not available from this source, as
otherwise determined by the CFD Administrator.
"AToa-Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit(s) was issued for anon-residential use.
"Outstanding Bonds" means all Bonds which are outstanding under and in accordance with
the provisions of the Indenture.
"Property Owner Association Prnperty" means, for each Fiscal Year, any property within
the boundaries of CFD No. 06-2 that is owned by or irrevocably dedicated to a property
owner association, including any master or sub-association.
"Proportionately" means, for Developed Property, that the ratio of the actual Special Tax A
levy to the Assigned Special Tax A is equal for all Assessor's Parcels of Developed Property
and that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for
all Assessor's Parcels of Developed Property. For Public Property and Taxable Property
Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax
A levy per Acre to the Maximum Special Tax A per Acre is equal far all Acres of Public
Property and Taxable Property Owner Association Property, as applicable.
Clay of Anahebn June 29, 2006
CFD No. 06-2 (SYadiurrl Logs) Page 3
"Public Properly" means, for each Fiscal Year, any property within the boundaries of CFD
No. 06-2 that (i) is owned by or irrevocably offered for dedication to the fbderal government,
the State, the County, the City or any other public agency, provided however that any
property leased by a public agency to a private e~ity and subject to taxation under Section
53340.1 of the Act shall be taxed and classified in accordance with its use; or (ii) is
encumbered by a public utility easement making impractical its use for any purpose other
than that set forth in the easement.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage, overhang,
patio, enclosed patio, or similar area. The amount of floor area shall be determined by
reference to the building permits) issued by the City, or if square footage is not available
from this source, as otherwise determined by the CFD Administrator based on the recorded
condominium plea or other available documents.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential dwelling
units.
"Special Tax" means the Special Tax Aand/or Special Tax B, as applicable.
"Special Taz A" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Developed Property, Taxable Property Owner Association Property, and Public
Property to fund the Special Tax Requirement for Facilities.
"Special Taz B" means the annual special tax to be levied in each Fiscal Year on each
Assessor's Parcel of Developed Property to fund the Special Tax Requirement for Services.
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year
to pay: (1} debt service and other periodic costs on the Bonds due in the calendar year
commencing in such Fiscal Year; (2) directly for the acquisition or construction of authorised
facilities of CFD No. 06-2; (3) an~ allocable share of the Administrative Expenses as
determined by the CFD Administrator; {4) any amount required to replenish any reserve fund
established for the Bonds; {5) for reasonably anticipated delinquent Special Taxes based on
the delinquency rate for Special Taxes levied in the previous Fiscal Year; and {t7 the costs of
remarketing, credit enhancement and liquidity facility fees (including such fees for
instruments that serve as the basis of a reserve fund related to any Bonds in lieu of cash};less
(7) a credit for fiznds available to reduce the annual Special Tax A levy, as determined by the
CFD Administrator pursuant to the indenture.
"Special Tax Requirement for Services" means that amount reasonably required in any
Fiscal Year to pay: (1) directly for police protection services, fire protection and suppression
services, and paramedic services authorized to be financed by CFD No. 06-2; and (2} en
allocable share of the Administrative Expenses as determined by the CFD Administrator; less
(3) a credit for funds available to reduce the annual Special Tax B levy, as determined by the
CFD Administrator.
Ct{y of Anaheim dsne 19, aflUb
CFD No 06-2 (Sradtum Loj1s) Page 4
"State" means the State of California.
"Taxable Property" means, for each Fiscal Year, all of the property within the boundaries
of CFD No. 06-2 which is not exempt from the Special Tax pursuant to law or Section E
below.
"Tazable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to
Section E below.
"Trastee" means the trustee or fiscal agent under the Indenture.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2007-08, all Taxable Property within CFD
No. 06-2 shall be classified as Developed Property, Taxable Properly Owner Association
Property, and Public Property and shall be subject to Special Taxes in accordance with the
rate and method of apportionment determined pursuant to Sections C and D below.
Developed Property shall be further classified as Residential Property and Non Residential
Property.
C. MAXIMUM SPECIAL TAX
1. Special Tax A
a. Developed Property
(1) Maximum Special Tax A
The Maximum Special Tax A for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the amount derived by
application of the Assigned Special Tax A or (ii) the amount derived
by application of the Backup Special Tax A.
(2) Assigned Special Tax A
The Assigned Special Tax A for each residential unit shall be based
on the Residential Floor Area of such unit. The Assigned Special Tax
A for Non-Residential Properly shall bebased onthe amourrt ofNon-
Residential Floor Area located on the Assessor's Parcel.
The Assigned Special Tax A far each Land Use Class is shown below
in Table 1.
~ ofAn~g~ J,~t a9, 2006
CFD Na 06-2 (S'tadtum Lo, f!s) p~ s
.~
TABLE I
Ass' ed S ecial Tax A far Develo ed Pro e
..~.. ..
.isasd
Use
Cl~tas ...~ .....r.:.~..:~.::..:;
~'; ~.
~~ .~~: Descrl~`tion ~; ~: ~~;~:::: ~;;.:.:.
..
~`,i>~idi:~loorA~i~ai~.°;
.
:~'~ ~Ass~nal:St:T~Y~~~;':`•
1 Residential Property > 1,250 sq. $. $3,429 per unit
2 Residential Property 1,100 -1,249 sq, ft. $3,048 per unit
3 Residential Property 904 -1,09'9 sq. ft. $2,636 per unit
4 Residential Property 700 - 899 sq. ft. $1,606 per unit
5 Residential Property < 700 sq. ft. $1,307 per unit
6 Non-Residential Properly Not Applicable $1.8594 per square foot of
Non-Residential Floor Area
(3) Backup Special Tax A
The Backup Special Tax A for each Assessor's Parcel of Residential
Property shall equal $2,178 per unit.
There shall be no Backup Special Tax A levied on Non-Residential
Property.
Notwithstandingthe foregoing, if all or any portion of a Final Map is
subsequently changed or modified in a manner that results in fewer
than 390 residential units, then the Backup Special Tax A far each
Assessor's Parcel of Residential Property within the area that is
changed or modified shall be a rate per unit calculated as follows:
{a) Determine the total Backup Special Tax A anticipated to apply to
the changed or modified portion of the Fine! Map prior to the change
or modification.
{b) The result of paragraph (a) above shall be divided by the total
number of residential units which exist in such changed or modified
Final Map area, as reasonably determined by the CFD Administrator.
(c) The result is the Backup Special Tax A per unit which shall be
applicable to all Assessor's Parcels of Residential Property in such
changed or modified portion of the Final Map.
b. Taxable Proveriv Owner Association Property and Public Property
The Maximum Special Tax A for Taxable Property Owner Association
Property and Public Properly shall be $159,044 per Acre.
City of Maheim June Z9, Z006
CPD No. 0~2 (Stadium La,(i's) Page 6
2. Specfal Tax B
a. Developed Pro e~rt~+
The Fiscal Year 2006-07 Maximum Special Tax B for Residential Property
shall equal $350 per unit. There shall be no Special Tax B levied on Non-
Residential Property.
b. Taxable Property,Owaer Association Propertv and Public Prope~rt
There shall be no Special Tax B levied on Taxable Property Owner
Association Property and Public Properly.
c. Increase in the Maximum Special Tax B
On each July I, commencing on July 1, 2007, the Maximum Special Tex B
shall be increased by the greater of the Consumer Price Index or two percent
(2%}.
D. METHOD OF APPORTIO1~iMENT OF THE SPECIAL TAB
1. Special Taz A
Commencing with Fiscal Year 2007-08 and for each following Fiscal Year, the CFD
Administrator shall determine the Special Tax Requirement for Facilities and the
Council shall levy the Special Tax A as follows:
First: The Special Tax A shall be levied Proportionately oneach Assessor's Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax A as
needed to satisfy the Special Tax Requirement for Facilities;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, then the levy of the Special Tax A
on each Assessor's Parcel of Developed Property whose Maximum Special Tax is
determined through the application of the Backup Special Tax A shall be increased in
equal percentages from the Assigned Special Tax A up to the Maximum Special Tax
A for each such Assessor's Parcel;
Third: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first two steps have been completed, then the Special Tax A shall
be levied Proportionately on each Acre of Taxable Property Owner Association
Property at up to the Maximum Special Tax A for Taxable Property Owner
Association Properly;
Fo : If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first three steps have been completed, thenthe Special Tax A shall
City ojAnaheim Jeuee 29, ZODb
CFD No. Ob-Z (Stadium Luj~s) page ~
be levied Proportionately on each Acre of Public Property at up to the Maximum
Special Tax A for Public Property.
2. Special Taa B
Commencing with Fiscal Year 200?-08 and for each following Fiscal Year, the CFD
Administrator shall determine the Special Tax Requirement for Services and the
Council shall levy the Special Tax B Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Maximum Special Tax B as
needed to satisfy the Special Tax Requirement for Services.
Notwithstaadingthecbove, under no circumstances shall the Special Tax levied against any
Assessor's Parcel of Residential Property for which an occupancy permit for private
residential use has been issued be increased by more than ten percent as a consequence of
delinquency or default by the owner of any other Assessor's Parcel within CFD No. 06-2.
E. EXEMPTIONS
No Special Tax A shall be levied on up to 420,857 building square feet of Property Owner
Association Property. Tax-exempt status will be assigned by the CFD Administrator in the
chronological order in which property becomes Property Owner Association Property.
Property Owner Association Property that is not exempt from Special Tax A under this
section shall be subject to the levy ofthe Special Tax A and shall be taxed Proportionately as
part of step three in Section D.1 above at up to 100°!0 of the applicable Maximum Special
Tax A for Taxable Property Owner Association Property.
F. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct
and requesting a refund may file a written notice of appeal and refund to that effect with the
CFD Administrator not later than one calendar year after having paid the Special Tax that is
disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet
with the property owner, consider written and oral evidence regarding the amount of the
Special Tax, and decide the appeal. If the CFD Administrator's decision requires the Special
Tax be modified or changed in favor of the property owner, a cash refund shall not be made
(except for the last year of levy), but an adjustment shall be made to the next Special Tax
levy. Any dispute over the decision of the CFD Administrator shall be refereed to the City
Council and the decision of the City Council shall be final This procedure shall be exclusive
and its exhaustion by any property owner shall be a condition precedent to any legal action by
such owner.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that CFD No. 06-2 may directly bill the Special
City ofAxahe~x Jane 39, 3006
CFD No. 06-3 {Stadlam Lofts) Page $
Tax, may collect Special Taxes at a different time or in a different manner if necessary to
meet its financial obligations.
H. PREPAYMENT OF SPECIAL TAX A
The following definition applies to this Section H:
"CFD Pablic Facilities" means either $8.2 million in 2006 dollars, which shall increase by
the Construction Inflation Index on July 1, 2007, and on each July 1 thereafter, or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
public facilities to be provided by CFD Na. 06-2 under the authorized bonding program far
CFD No. 06-2, or (ii) shall be determined by the Council concuntently with a covenant by
CFD No. 06-2, made for the benefit of the owners of Bonds, that no additional Bonds (other
than refunding Bonds issued under the Act} payable from Special Tax A will be issued by
CFD No. 06-2.
"Construction Ind" means a fund or account, however denominated, specifically
identified in the Indenture to hold funds which are available for expenditure to acquire or
construct public facilities eligible for financing by CFD No. 06-2 under the Act.
"Construction Inflation Indez" means, for a Fiscal Year, the annual percentage change in
the En ing eerin}tNvws-Record Building Cost Index for the City ofLos Angeles, measured as
of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to
be published, the Construction Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the Engineering News-Record Building
Cost Index for the City of Los Angeles.
"Future Facilities Costs" mesas the CFD Public Facilities minus (i) public facility costs
previously paid from the Construction Fund, (ii) moneys currently on deposit in the
Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected
to be available to finance CFD Public Facilities.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
indenture after the first interest and/or principal payment date following the current Fiscal
Year.
1. Prepayment is Fail
The Maximum Special Tax A on any Assessor's Parcel of Developed Property may
be prepaid. The Special Tax A obligation applicable to such Assessor's Parcel in
CFD No. 06-2 maybe fully prepaid and the obli gation of the Assessor's Parcel to pay
the Special Tax A permanently satisfied as described herein; provided that a
prepayment may be made only if there are no delinquent Special Taxes with respect
to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's
Parcel intending to prepay the Special Tax A obligation shall provide the CFD
Administrator with written notice of intent to prepay. Within 30 days of receipt of
Ctsy ajAnalse6n June 29, 2006
CFD No 06-2 (Stadluni Lo, f ~a) Page 9
such written notice, the CFD Administrator shall notify such owner of the
prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a
reasonable fee for providing this amount.
The Special Tax B may not be prepaid.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized tennis as defined below}:
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less _ __ _ Reserve Fund _Crredit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below}
shall be calculated as follows:
Paraaranly No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel,
2. Compute the Maximum Special Tax A for the Assessor's Parcel to be
Frepaid.
3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the
total Maximum Special Tax A for the entire CFD No. 06-2 at buildout
(ad}usted to reflect the reduction in Maximum Special Tax A revenues from
any Assessor's Parcels which have prepaid their Special Tax A obligation in
full or in part).
4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding
Bonds to compute the amount of Outstanding Bonds to be paid or redeemed
(the "Band Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by
the applicable redemption premium, if any, on the Outstanding Bonds to be
redeemed (the "Redemption Premiurrr").
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount
determined pursuant to paragraph 5 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Amount").
C1ty ofMaltebn Jwee 29, 2006
CFD No. 06-2 (Stadlrrm Laf~c) Page 10
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest payment date following the current Fiscal Year
until the earliest redemption date for the Outstanding Bonds.
9. Determine the Special Tax A levied on the Assessor's Parcel in the current
Fiscal Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Prepayment Amount less the Future
Facilities Amount and the Administrative Fees and Expenses from the date of
prepayment until the redemption date for the Outstanding Bonds to be
redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 4 and subtract the
amount computed pursuant to paragraph 10 (the "Defeasance Amount").
12. Verify the administrative fees and expenses ofNo. 06-2, including the costs
of computation of the prepayment, the costs to invest the prepayment
proceeds, the costs of redeeming Bonds, and the costs of recording any
notices to evidence the prepayment and the redemption (the "Administrative
Fees and ~rpenses").
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of;
(a) the expected reduction in the reserve requirement (as defined in the
Indenture), if any, associated with the redemption of Outstanding Bonds as a
result of the prepayment, ar (b) the amount derived by subtracting the new
reserve requirement (as defined in the Indenture) in effect after the
redemption of Outstanding Bonds as a result of the prepayment from the
balance in the reserve fund on the prepayment date, but in no event shall such
amount be less than zero.
14. The Special Tax A prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7,11 aad 12, less the amount computed pursuant
to paragraph 13 (the "Prepayment Amount").
15. From the Prepayment Amount, the amounts computed pursuant to paragraphs
4, 5, 11, and 13 shall be deposited into the appropriate fund or account
established under the Indenture and be used to redeem Outstanding Bonds or
make debt service payments thereon. The amount computed pursuant to
paragraph 7 shall be deposited into the Construction Fund. The amount
computed pursuant to paragraph 12 shall be retained by CFD No. 06-2.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment
of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will
C1ty of Anahebn - - Jane 19, 2006
CFD No. 06-2 {Sladirem Lo,~s} Page I1
be retained in the appropriate fund or account established under the Indenture to be
used with the next redemption of Bonds or to make debt service payments thereon.
As a result of the payment of the current Fiscal Year's Special Tax A levy as
determined under paragraph 11 (above), the CFD Administrator shall remove the
current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County
tax rolls. With respect to any Assessor's Parcel that is prepaid, CFD No. 06-2 shall
cause a suitable notice to be recorded in compliance with the Act, to indicate the
prepayment of Special Taxes and the release of the Special Tax A lien on such
Assessor's Parcel, and the obligation of such Assessor's Parce! to pay the Special
Tax A shall cease.
2. Prepayment in Part
The Maximum Special Tax A on any Assessor's Parcel of Developed Properly may
be partially prepaid. The amount of the prepayment shat! be calculated as in Section
H.1, except that a partial prepayment shall be calculated according to the following
formula:
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1
F = the percent by which the owner of the Assessor's Parcel is partially
prepaying the Maximum Annual Special Tax A.
A = the Administrative Fees and Expenses according to Section H.1
An owner of as Assessor's Parcel intending to partially prepay the Special Tax A
obligaxion shall provide the CFD Administrator with (i) written notice of intent to
partially prcpay and {ii) the percentage by which the Special Tax A shall be prepaid.
Within 30 days of receipt of such written notice, the CFD Administrator shall notify
such owner of the partial prepayment amount of such Assessor's Parcel. The CFD
Administrator may charge a reasonable fee for providing this amount.
With respect to any Assessor's Parcel that is partially prepaid, CFD No. 06-2 shall
(i) distribute the funds remitted to it according to Section H.1. and (ii) indicate in the
records of CFD No. 06-2 that there has been a partial prepayment of the Special Tax
A and that a portion of the Special Tax A equal to the outstanding percentage
{1.00 - F) of the remaining Maximiun Special Tax A shall continue to be levied on
such Assessor's Parcel pursuant to Section D.
Notwithstanding the foregoing, no full or partial prepayment shall be allowed unless the
amount of Maximum Special Tax A that may be levied on Taxable Property (excluding
Taxable Property Owner Association Property and Public Property) within CFD No. 06-2
Cfly ofAnahelm Jae 29.2006
CFD No. 06-2 (Stadirrnt Lofts) Pegs 12
both prior to and after the proposed prepayment is at least 1.1 times the maximum annual
debt service on all Outstanding Bonds.
I. TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty years commencing in
Fiscal Year 2007-08. The Special Tax B shall be levied as long as necessary to meet the
Special Tax Requirement for Services.
K1CL[EN'r5Z1ANAHEIN[1Plshnnm 15riatglalstadium Lof~IRMA~Smdium Logs RbIA OS.doc
~~ - -
C!ry of Anahehe rune 24, ?006
CFD Na. 06-2 (Sladtum Lof!'~) Page !3
CLERK'S CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF ANAHEIM
I, Sheryll Schroeder, City Clerk of the City of Anaheim, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the
City Council of said City duly and regularly held at the regular meeting place thereof on July 1 I,
2006, of which meeting all of the members of said Cii~~ Council had due noticx and at which a
majority thereof were present; and that at said meeting said Resolution was adaptod by the
following vote:
AYES: COLfi1CIL 1viEMBERS: Mayor Pringle, Council Members Sidhu, Hernandez
Galloway, Chavez .
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
Aq agenda of said meeting was pasted at least ~72 hours before said meeting at 200 South
Anaheim Boulevard, Anaheim, California, a location freely accessible to members of the public,
and a brief general description of said Resolution appearod en said agenda.
I further certify that I have carefully compared the same with the original minutes of said
rneeting on file and of record in my office; that the foregoing Resolution is a full, true and correct
copy of the original Resolution adopted at said meeting and entered in said minutes; and that said
Resolution has not been amended, modified or rescinded since the date of its adoption, and the
same is now in full force and ef'Eect.
Dated: ~ /.~ , 2006
ity Clerk
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