Report to Mayor and City Council
Tuesday, May 21, 2019
Consent
SUBJECT:
Title
CONSIDER RESOLUTION NO. 19-008, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF CARSON COMMUNITY FACILITIES DISTRICT NO. 2018-01 (MAINTENANCE AND SERVICES) APPROVING ANNEXATION NO. 1 OF PROPERTY LOCATED WITHIN THE FUTURE ANNEXATION AREA (21900 AND 21930 S. WILMINGTON STREET AND 2061 E. 220TH STREET (APN: 7316-025-061, 7316-025-062, 7316-025-097, 7316-025-812, AND 7316-025-814) (CITY COUNCIL)
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I. SUMMARY
On November 7, 2018, the City adopted Resolution No. 18-119 establishing the City of Carson Community Facilities District No. 2018-01 (“CFD No. 2018-01”) (Maintenance and Services) and Future Voluntary Annexation Areas. With the formation of CFD No. 2018-01 complete, projects in the city-wide Future Voluntary Annexation Areas are now able to be annexed into CFD No. 2018-01. This action would include annexation of the property owned by Alpert and Alpert Iron and Metal Co. (“AL2”), located at 21900 and 21930 S. Wilmington Street and 2061 E. 220th Street (APN: 7316-025-061, 7316-025-062, 7316-025-097, 7316-025-812, and 7316-025-814) (collectively, “Property”) into CFD No. 2018-01.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE further reading and ADOPT Resolution No. 19-008, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF CARSON COMMUNITY FACILITIES DISTRICT NO. 2018-01 (MAINTENANCE AND SERVICES) APPROVING ANNEXATION NO. 1 OF PROPERTY LOCATED WITHIN THE FUTURE ANNEXATION AREA (21900 AND 21930 S. WILMINGTON STREET AND 2061 E. 220TH STREET (APN: 7316-025-061, 7316-025-062, 7316-025-097, 7316-025-812, AND 7316-025-814)”
2. RECEIVE and FILE the Unanimous Approval Consent Letter from AL2 LLC (formerly Alpert and Alpert Iron and Metal Co.)
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III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council.
IV. BACKGROUND
AL2 initially proposed the construction of a 420,000 sq. ft. logistic facility; however, their development was subject to a City moratorium concerning the establishment, expansion, or modification of logistics facilities (Interim Urgency Ordinance No. 17-1615U, extended by Interim Urgency Ordinance Nos. 17-1618U and 18-1805U, collectively, the “Moratorium”). On May 9, 2017, AL2 filed a request for an exception to the Moratorium. The City Council granted AL2 an exception from the Moratorium on May 16, 2017 provided that AL2 participate in one or more future CFD’s to pay for ongoing costs associated with the project.
When the City formed CFD No. 2018-01, certain properties including the subject Property were identified on the boundary map as being within the Future Voluntary Annexation Area. Pursuant to the Mello-Roos Community Facilities Act of 1982, Section 53311, et seq. of the California Government Code (the “Act”), this prior hearing allowed the Property to be annexed by unanimous consent of affected landowners of the Property without holding a second public hearing. The City received the Unanimous Consent Letter to annex the Property into CFD No. 2018-01, under Tax Zone No. 2, pursuant to the simplified process for annexations under the Act. Should Council adopt Resolution No. 19-008 (Exhibit No. 2), the City Clerk, or designee, would be directed to record the Amendment No. 1 to Notice of Special Tax Lien (Exhibit No. 3) with the Los Angeles County Recorder’s Office to effectuate the levying of special taxes on the Property for Tax Zone No. 2.
The owner of the AL2 filed a unanimous approval form with the City Clerk’s Office, which is attached separately here and made a part of the record as Exhibit No. 1 (“AL2 Signed Unanimous Consent Letter”), also attached as Exhibit B to Resolution No. 19-008. The Unanimous Approval Consent Letter requests to have the Property included within the boundaries of the newly formed CFD No. 2018-01, authorizes the levy of special taxes on the Property for the purposes of financing the supplemental services associated with AL2’s new development. AL2 will be taxed in accordance to Tax Zone No. 2 of the Rate and Method of Apportionment for CFD No. 2018-01, which amounts to $36,507.80 ($1,839.18 per acre) annually. The amount was previously established through a Development Impact Fees and Community Facilities District Participation Agreement with AL2 which was one of the requirements imposed by the City Council to grant the exception to the Moratorium.
V. FISCAL IMPACT
Annexation of the Property into CFD No. 2018-01 will increase City’s revenues and expenses by approximately to $36,507.80 annually. The cost for the annexation will be paid by the developer pursuant to the Reimbursement Agreement, and there is no immediate impact to the City’s General Fund as a result these actions.
VI. EXHIBITS
1. Signed AL2 Unanimous Approval Consent Letter (pgs. 4-17)
2. Resolution No. 19-008 (pgs. 18-38)
3. Amendment No. 1 to Notice of Special Tax Lien (pgs. 39-49)
Prepared by: James Nguyen, Project Manager