Report to Mayor and City Council
Tuesday, September 01, 2020
Consent
SUBJECT:
Title
CONSIDER RESOLUTION NO. 20-137, 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. 4 OF PROPERTIES LOCATED AT THE NORTHEAST CORNER OF CENTRAL AVENUE AND VICTORIA STREET (APN 7319-003-104, 7319-003-105, 7319-003-106) AND 1007 E. VICTORIA STREET (APN: 7319-038-900) WITHIN THE FUTURE ANNEXATION AREA (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 authorize the annexation of the two Brandywine development projects, Carson Landing (175 units) and Carson Upton (36 units), into CFD No. 2018-01 by unanimous consent of the property owners. If approved, both Brandywine properties will comprise of the fourth annexation to be included in the CFD No. 2018-01, after 21915 Dolores (Annexation No. 3), Real Quest Holding (Birch) (Annexation No. 2), AL2 (Alpert & Alpert) (Annexation No. 1), and JJ.ER (CalPak) (Original CFD No. 2018-01).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE further reading and ADOPT Resolution No. 20-137, “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. 4 OF PROPERTIES LOCATED AT THE NORTHEAST CORNER OF S. CENTRAL AVENUE AND E. VICTORIA STREET (APN: 7319-003-104, 7319-003-105, 7319-003-106) AND 1007 E. VICTORIA STREET (APN: 7319-038-900) WITHIN THE FUTURE ANNEXATION AREA.”
2. RECEIVE and FILE the Unanimous Approval Consent Letter from Carson 175, LLC and Carson 36, LLC.
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III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council.
IV. BACKGROUND
The Brandywine developments, Carson Upton and Carson Landing, consist of construction of three-story residential condominium developments on two separate properties. The 175-unit Carson Landing Property (formerly known as the Integral/Victoria Greens project) is located on the Northeast corner of Victoria Street and Central Avenue (APN: 7319-003-104, 7319-003-105, 7319003-106) and was approved by the City Council on August 6, 2019. The 36-unit Carson Upton project is located on 1007 E. Victoria Street (APN: 7319-038-900) and was approved by the City Council on December 3, 2019.
When the City formed CFD No. 2018-01, certain properties including both of the Brandywine developments 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 Brandywine development properties to be annexed by unanimous consent of affected landowners of the Properties without holding a second public hearing and election of property owners.
On August 11, 2020, the property owners of the two Brandywine developments, Carson 175, LLC and Carson 36, LLC, submitted an Executed Unanimous Approval Consent Letter (Exhibit No. 1) with the City for annexation into the CFD No. 2018-01. This Council action would allow the Brandywine development properties to annex into the CFD No. 2018-01 to pay for ongoing services associated with the development. These ongoing services include all City services permitted by the CFD, including the maintenance of parks, roadways, and sidewalks. Should Council adopt Resolution No. 20-137 (Exhibit No. 2), the City Clerk, or designee, would be directed to record the Amendment No. 4 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 Brandywine developments.
The Brandywine developments will be taxed in accordance to Tax Zone No. 6 of the Rate and Method of Apportionment for CFD No. 2018-01, which amounts to $198,475.04 ($940.64 per unit) annually. The amount is consistent with the calculation methodology used to determine the “Residential - All Other” rate from the city-wide Fiscal Impact Analysis report prepared by the City’s CFD Consultant, NBS Government Finance Group, and approved by the City Council on April 2, 2019.
V. FISCAL IMPACT
Annexation of the Brandywine development properties into CFD No. 2018-01 will increase the City’s revenues by approximately $940.64 per unit per year, which amounts to $164,612.00 annually for the Carson Landing project and $33,863.04 annually for the Carson Upton project. The cost for the annexation is paid by the developer/owner pursuant to the City’s Deposit System (Development Application Process). As a result, there is no immediate impact to the City’s General Fund.
VI. EXHIBITS
1. Executed Unanimous Approval Consent Letter from Carson Landing and Carson Upton (pgs. 4-19)
2. Resolution No. 20-137 (pgs. 20-42)
3. Amendment No. 4 to Notice of Special Tax Lien (pgs. 43-54)
Prepared by: Saied Naaseh, Director of Community Development;
James Nguyen, Project Manager