Report to Mayor and City Council
Tuesday, January 18, 2022
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER RESOLUTION NO. 22-007, 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. 10 (9-UNIT CONDOMINIUM DEVELOPMENT) FOR PROPERTY LOCATED AT 123 E. 223RD STREET (APN: 7335-024-024) 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 9-unit condominium project at 123 E. 223rd Street (“Property”) developed by MMVON Capital Holdings LLC, into CFD No. 2018-01 by unanimous consent of the property owner.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. OPEN the public hearing.
2. TAKE public testimony and accept any written and/or oral communications.
3. CLOSE the public hearing.
4. WAIVE further reading and ADOPT Resolution No. 22-007, “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. 10 (9-UNIT CONDOMINIUM DEVELOPMENT) FOR PROPERTY LOCATED AT THE 123 E. 223RD STREET (APN: 7335-024-024) WITHIN THE FUTURE ANNEXATION AREA”
5. RECEIVE and FILE the Unanimous Approval Consent Letter from MMVON Capital Holdings LLC.
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III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council.
IV. BACKGROUND
The 123 E. 223rd Street project (“Project”) consists of a 9-unit condominium development on a 0.45-acre project site. The Project includes 5,575 square feet of usable open space, including 2,338 square feet of private open space (patios and balconies). The Project was approved by the Planning Commission on June 24, 2020.
When the City formed CFD No. 2018-01, certain properties including the 123 E. 223rd Street 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 Properties without holding a second public hearing and election of property owners.
On December 29, 2021, the owner of the Property, MMVON Capital Holdings LLC, submitted an Executed Unanimous Approval Consent Letter (Exhibit No. 1) with the City for annexation into the CFD No. 2018-01. This City Council action would allow the Property to annex into the CFD No. 2018-01 to pay for ongoing municipal 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. 22-007 (Exhibit No. 2), the City Clerk, or designee, would be directed to record the Amendment No. 10 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.
The Property will be taxed in accordance with Tax Zone No. 10 of the Rate and Method of Apportionment for CFD No. 2018-01, which amounts to $9,058.32 ($1,006.48 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.
V. FISCAL IMPACT
Annexation of the 123 E. 223rd Street property into CFD No. 2018-01 will increase the City’s revenues by approximately $1,006.48 per unit, which amounts to $9,058.32 annually. 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 MMVON Capital Holdings LLC (pgs. 4-19)
2. Resolution No. 22-007 (pgs. 20-42)
3. Amendment No. 10 to Notice of Special Tax Lien (pgs. 43-54)
Prepared by: Saied Naaseh, Director of Community Development and
James Nguyen, Project Manager