Report Prepared by: Michael Hren, Principal Planner, Development Services Department
Title
SUBJECT: Public Hearing to Consider (1) the Annexation of Certain Property into Community Facilities District (CFD) No. 2003-2 (Services) for the Yosemite Crossing Development, Calling and Holding a Special Election for Annexation No. 17 into CFD No. 2003-2 (Services) for the Yosemite Crossing Development; Canvassing the Results of the Election Held within Annexation No. 17 of Said District, and Annexing Annexation No. 17 to Said District and Authorizing the Levy of a Special Tax Within Said Annexation No. 17; and (2) Detachment of Same Property from Mansionette Maintenance District
REPORT IN BRIEF
Requests the City Council Conduct a Consolidated Public Hearing Regarding (a) Annexation into Community Facilities District (CFD) No. 2003-2 (Services) for the Yosemite Crossing Development, and (b) Detachment of same Property from Mansionette Maintenance District; Hold Election for Annexation; Detach Property from Mansionette Maintenance District.
RECOMMENDATION
City Council - Adopt a motion (1) on behalf of itself and the CFD:
A. Holding a Consolidated Public Hearing on the annexation of certain property into the CFD and the levy of special taxes; and,
B. Adopting Resolution 2021-50, a Resolution of the City Council of the City of Merced, acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced determining the validity of prior proceedings, calling a special election related to Annexation No. 17; and,
C. Holding an election; and,
D. Adopting Resolution 2021-51, a Resolution of the City Council of the City of Merced acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced canvassing the results of the election held within Annexation No. 17 of said District; and,
E. Adopting Resolution 2021-52, a Resolution of the City Council of the City of Merced acting as the Legislative Body of the Community Facilities District No. 2003-2 (Services) of the City of Merced, annexing Annexation No. 17 to said district and authorizing the levy of a special tax within said Annexation No. 17.
City Council - Adopt a motion (2):
A. Adopting Resolution 2021-53, a Resolution of the City Council of the City of Merced, detaching area designated as Annexation No. 17 of the City of Merced Community Facilities District No. 2003-2 (Services) from the Mansionette Maintenance District
Body
ALTERNATIVES
1. Approve the actions as recommended by staff; or,
2. Request modification or amendment to the documents and provide direction to City staff regarding the same; or,
3. Decline to authorize action as recommended; or,
4. Continue to a future City Council meeting (time and date to be specified in motion).
AUTHORITY
Annexation of property into the City’s existing CFD No. 2003-3 (Services) and detachment of same property from Mansionette Maintenance District pursuant to Merced City Charter, Section 200; Chapter 2.5 (commencing with Section 53311_ of Part 1 of Division 2 of Title 5 of California Government Code (the “Act”), commonly known as the “Mello-Roos Community Facilities Act of 1982;” Chapter 13 of Division XIII of Title 13 of the City of Merced Municipal Code; and the City’s Policy on new development.
DISCUSSION
The City approved a policy requiring all new development with the City to annex to a Community Facilities District (CFD) pursuant to the Mello-Roos Community Facilities Act of 1982, for the provision of certain services to new development. The services to be provided may include all or a portion of the following: police and fire protection services, maintenance of parks, landscaping, parkways, open space and storm drain maintenance, and other services authorized or to be authorized by the City’s Municipal Code. The formation or annexation to the community facilities district is a condition of approval for new developments
Pursuant to the Act and the City’s policies, on June 7, 2021, the City Council, acting as the Legislative Body of the CFD, declared its intention to annex certain property to CFD No. 2003-2 (Services) for the Yosemite Crossing Development (Attachment 1) (the “Development”). Also, on June 7, 2021, the City Council accepted a “Petition to Annex” from Yosemite & G, LLC.
The area to be annexed includes the Yosemite Crossing Development, bounded by Lot 3 86 P.M. 48 M.C.R. to the north, Yosemite Avenue to the south, G Street to the west and the extension of Sandpiper Avenue to the east (Attachment 1).
In accordance with the Act, a map of the proposed boundaries of Annexation No. 17 will be recorded with the County Recorder’s Office (Attachment 2).
A public hearing was properly noticed for this evening and will involve a number of specific steps that must be completed in order. City staff will outline those steps in order for the City Council at the start of the public hearing. In general, those steps will include the following: 1) Provided there is no majority protest at the close of the public hearing, the City Council may call a special election for this evening for the annexation to the CFD of Annexation No. 17; 2) The special election will ask the Developer to authorize: (a) the annexation to the CFD of Annexation No. 17; and, (b) the levy of an annual special tax within Annexation No. 17; 3) The City on behalf of the developers has submitted a sealed ballot to the City Clerk (the election official). Should the proposition pass with a two-thirds vote from the qualified voters (the landowner) as shown in the resolution canvassing the vote, the City may adopt the resolution of annexation.
This property, now known as the Yosemite Crossing development, is slated for 44 multifamily units and approximately 200,000 square feet of office and retail space. As noted above, the developer, Yosemite and G, LLC, has petitioned the City to annex the property into the City’s CFD for Services (CFD No. 2003-2), and to detach the property from the Maintenance District. No assessments were collected from the Maintenance District as the property has been vacant.
The Rate and Method of Apportionment (RMA) has been calculated based on 44 multifamily units, 122,718 sq. ft. of retail and 78,465 sq. ft. of commercial.
The City Council is being asked to conduct proceedings to annex the property into the CFD and detach the property from the Mansionette Maintenance District.
The detachment of the property from the Mansionette Maintenance District is contingent on the annexation to the CFD and will only become effective upon the annexation of the property to the CFD.
The participating developer is responsible for the costs of the CFD annexation. A Deposit and Reimbursement Agreement was previously approved by the City Council and the appropriate deposit has been paid to the City.
City Council Action
Staff is recommending the City Council conduct a consolidated public hearing as the legislative body of the CFD for Annexation No. 17, as well as on its own behalf for the detachment of the Property from the Mansionette Maintenance District. If there is no majority protest relating to the annexation, the City, as the legislative body of the CFD, may call an election, hold the election, canvass the ballots. Should the proposition pass with a two-thirds vote from the qualified voters, this property would be annexed into the CFD and the City may levy the special tax pursuant to the amended rate and method of apportionment. If there is no majority protest for the detachment and if the property is annexed to the CFD, the City may detach the property from Mansionette Maintenance District and record an amended map with the County Recorder.
IMPACT ON CITY RESOURCES
The annexation of this property into CFD No. 2003-2 (Services) would allow a special tax to be levied on these properties to cover the costs of landscape and storm drain maintenance and a portion of the costs for Police and Fire services to the project area.
ATTACHMENTS
1. Location Map
2. Draft Recorded Boundary Map for the Yosemite Crossing Development
3. Draft Resolution Determining the Validity of Prior Proceedings
4. Draft Resolution Canvassing the Results of the Election
5. Draft Resolution Annexing Annexation No. 17 into CFD No. 2003-2 (Services)
6. Draft Resolution Detaching Yosemite Crossing from the Mansionette Maintenance District
7. Presentation