HomeMy WebLinkAbout7/28/2005 - STAFF REPORTS (2) ;OF PALM S,.R
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CITY COUNCIL JULY 20, 2005
LEGISLATIVE ITEM
SUBJECT: CONSIDERATION OF THE INTENTION OF THE FORMATION OF
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) CITY
OF PALM SPRINGS; AND THE INTENTION TO INCUR BONDED
INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED
$21,000,000; AND APPROVAL OF A DEPOSIT AND
REIMBURSEMENT AGREEMENT WITH PALM SPRINGS
CLASSIC, LLC
FROM: David H. Ready, City Manager
BY: Finance Department and Public Works & Engineering Department
SUMMARY
On April 6, 2005, City Council approved further processing of an application submitted
by Palm Springs Classic, LLC, Lennar Homes of California, Inc., its Manager, for
formation of a Community Facilities District pursuant to the Mello-Roos Community
Facilities Act of 1982 for the Palm Springs Classic project (now known as "Escena").
Subsequently, on June 1, 2005, City Council approved contract service agreements
with Albert A, Webb Associates for the assessment engineering services, and with
Harris Realty Appraisal for the appraisal consultant services, necessary to provide
professional services related to the proposed formation of the Community Facilities
District. The actions proposed with this item formally establish the City's intention to
form the proposed Community Facilities District, as well as to incur bonded
indebtedness in an amount not to exceed $21,000,000 associated with the financing of
public improvements, fees, and incidental expenses within the proposed Community
Facilities District. Approval of the proposed actions schedules a formal Public Hearing
for September 7., 2005, and election of current landowners within the area subject to the
proposed Community Facilities District.
Item No. 3 . U .
City Council Staff Report
July 20, 2005— Page 2
Consideration of Formation of CFD 2005-2
RECOMMENDATION:
1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION
TO ESTABLISH AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS."
2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION
TO INCUR BONDED INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED
$21,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA) OF THE CITY OF PALM SPRINGS."
3. Adopt Resolution No , "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AND ORDERING THE
EXECUTION OF THAT CERTAIN DEPOSIT AND REIMBURSEMENT
AGREEMENT WITH PALM SPRINGS CLASSIC, LLC; AND MAKING CERTAIN
FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH."
4. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On April 6, 2005, City Council approved further processing of an application submitted
by Palm Springs Classic, LLC, Lennar Homes of California, Inc., its Manager, for
formation of a Community Facilities District ("CFD") pursuant to the Mello-Roos
Community Facilities Act of 1982 (the "Act") for the Palm Springs Classic project (now
known as "Escena"). (see April 6, 2005, staff report). City staff had originally designated
this proposed CFD as CFD 1; however, the City is currently processing formation of
another CFD for financing of additional police and fire services for new development,
which had already been designated as CFD 1 (formally identified as CFD 2005-1). As
such, this proposed CFD has been formally identified as Community Facilities District
2005-2 of the City of Palm Springs ("CFD 2005-2").
On June 1, 2005, City Council approved a contract services agreement to perform
special tax consulting with Albert A. Webb Associates, as well as a contract services
agreement to perform appraisal services with Harris Realty Appraisal for professional
services related to CFD 2005-2. These services were necessary to provide the City
with information related to CFD 2005-2, namely, an special tax analysis, identified as
the "Rate and Method of Apportionment for Community Facilities District No. 2005-2
(Escena Palm Springs) City of Palm Springs", and an appraisal to confirm that the
appraised value of the development exceeds the City's minimum criteria of a 4 to 1
value to lien ratio.
City Council Staff Report
July 20, 2005— Page 3
Consideration of Formation of CFD 2005-2
Lennar Homes, Inc., the manager of Palm Springs Classic, LLC, developing the
"Escena" project has requested that the City consider allowing formation of CFD 2005-2
to finance $14,887,048 of various public improvements, fees, and payoff of the existing
assessment against this property related to Assessment District No. 155 ("AD 155"), in
addition to all incidental costs related to the formation of CFD 2005-2 (see Attachment
2). The total amount to finance CFD 2005-2, including debt service and administrative
costs is proposed as not to exceed $21,000,000; however, it is expected that the total
amount of bonds to be issued would not exceed $19,000,000. The bonds actually
issued for CFD 2005-2 will only be for an amount sufficient to pay for the proposed
facilities, fees, and existing assessment for AD 155.
Lennar Homes, Inc., has planned on developing the "Escena" project in two phases,
with the golf course having already been completed. The first phase encompasses
approximately 542 single family detached homes, with a second phase encompassing
approximately 616 attached multi-family units. By forming CFD 2005-2, a special tax in
accordance with the "Rate and Method of Apportionment" (or "RMA") for CFD 2005-2, is
levied against the properties within the development. The proposed tax rate varies
depending upon the type of unit constructed (detached versus attached), as well as the
size of the unit. The RMA proposed to exempt the golf course and hotel properties from
C;FD 2005-2, and as such, no special taxes will be levied on those portions of the
development.
In light of the fact that Lennar Homes, Inc., is developing the project in two phases, it
has been proposed that the City consider issuance of the bonds for CFD 2005-2 in two
phases, or series, so that the bonded indebtedness incurred keeps pace as the units
are constructed. Until property is developed, the RMA establishes a tax rate for vacant
land; however, once a building permit is issued the tax rate in accordance with the type
and size of the unit being constructed is levied against that property for the subsequent
fiscal year. As seen in Attachment 3, the special taxes vary from $1,650 to $1,950 per
year for detached units, and from $850 to $1,050 per year for attached multi-family
units. It is anticipated that the overall effective tax rate will be no higher than 1.8%
(including all other ad valorem taxes, special assessments and the City's CFD 2005-1
for police and fire services).
The proposed actions to be taken by the City Council with regard to CFD 2005-2 follow
the formal process outlined by the Act which allows the creation of CFD's. It is required
that the City Council consider two separate actions related to the formation of CFD
2005-2: a Resolution of Intention to establish CFD 2005-2 which identifies the area of
land encompassing CFD 2005-2 and incorporates and approves the RMA's special tax
formula, and a Resolution of Intention to incur bonded indebtedness of CFD 2005-2
upon its formation. Each of these Resolutions call for the scheduling of a formal Public
Hearing, and an election by the property owners within the proposed CFD 2005-2
(which in this case is Lennar Homes, Inc.), between 30 and 60 days after adoption of
the resolutions; the Public Hearing for CFD 2005-2, if approved, has been scheduled for
September 7, 2005.
City Council Staff Report
July 20, 2005—Page 4
Consideration of Formation of CFD 2005-2
A third action is recommended for the City Council's consideration which will approve a
reimbursement agreement with the developer for receipt of funds deposited with the
City related to the formation of CFD 2005-2 (namely, payment of the various contract
service agreements) which would be reimbursed to the developer upon City receipt of
bond proceeds following the issuance of bonds.
Assuming City Council's approval of these actions, and the passage of the election to
form CFD 2005-2 and the special taxes as proposed, it is expected that a first series of
bonds will be issued for Phase 1 (542 detached homes) that will finance $3,060,000 of
City development impact fees (sewer connection fees, TUMF and Quimby Act fees);
$5,530,000 for public infrastructure costs (sewer and water system construction, and
construction of 3 project traffic signals); $1,230,000 for Desert Water Agency (DWA)
water connection and meter fees; and finally $331,000 to payoff the existing AD 155
assessment against the development. The second series of bonds issued for Phase 2
will be smaller, comprising the 616 attached multi-family units, and will include financing
of another $3,300,000 of City development impact fees and $1,400,000 of DWA fees.
The second series will be issued dependent upon the progress of the development, and
only at such time tract maps for the multi-family units have been approved.
FISCAL IMPACT:
Approval of the recommended actions does not commit the City in any way to financial
contribution or liability related to the proposed CFD 2005-2. Although ultimately the City
is the issuer of the tax-exempt bonds for CFD 2005-2, the City does not incur any
obligation to satisfy payment of the special taxes levied to secure payment of the bonds.
Failure of payment of the special taxes levied against the properties within CFD 2005-2
constitute a foreclosable lien on such properties if unpaid, which is used to secure and
satisfy the annual bond payments. No fiscal impact will result from the City's approval
of this action.
Craig,, raves David H. Ready
Dj &tor of Finance & Treasurer City Manager
David J. Barakian
Director of Public Works/City Engineer
Attachments:
1. April 6, 2005 staff report
2. CFD 2005-2 Bond Financed Facilities Summary
3. CFD 2005-2 Financial Summary
4. Resolutions (3)
ATTACHMENT
APRIL 6, 2005, STAFF REPORT
CITY COUNCIL. April 6, 2005
LEGISLATIVE ITEM
Subject: PALM SPRINGS CLASSIC COMMUNITY FACILITIES DISTRICT NO. 1
Initiated by: Public Works and Engineering Department
SUMMARY:
An application was filed with the City on February 13, 2004, for formation of a
Communities Facilities District pursuant to the Mello-Roos Community Facilities Act of
1982 for the Palm Springs Classic project, previously approved as Case 5.0666B, PD-
231, and Tentative Parcel Map 30928 on July 16, 2003, and subsequently approved as
Tentative Tract Map 32233 on November 17, 2004. This development is being
constructed by Palm Springs Classic, LLC, Lennar Homes of California, Inc., its
Manager. The project consists of an 18-hole golf course, hotel, vacation ownership
units, single family homes, and multi-family homes(with a maximum total of 1,450 units),
office and retail uses, and a fire station site. The City has established Policies and
Procedures for Special Assessment and Mello-Roos Community Facility District (CFD)
Municipal Bond Financing for Public Improvement for Development Projects that outlines
the minimum criteria for Special Assessment or Community Facility Districts formed in
the City, as well as the guidelines and process for their formation. The Policy established
a Special Districts Committee comprised of various staff members, and it is the
Committee's responsibility to review the Community Facilities District application and
render an opinion regarding the City Council's approval or denial of its formation.
RECOMMENDATION:
(1) That the City Council approve the application for further processing of the formation
of Community Facilities District No. 1 ("CFD 1"), submitted by Palm Springs Classic,
LLC, in accordance with the City's Policies and Procedures for Special Assessment and
Mello-Roos Community Facility District (CFD) Municipal Bond Financing for Public
Improvement for Development Projects (the "Policy"); (2) authorize staff to select and
negotiate contracts with consultants for an assessment engineer's report, appraisal and
market absorption study; and collect necessary deposits from the applicant to fund
consultant contracts; and (3) approve, in a form acceptable to the City Attorney, a
Memorandum of Understanding with Lennar Homes of California regarding certain
developer contributions to be made to the City in conjunction with the formation of the
Community Facilities District.
STAFF ANALYSIS:
Palm Springs Classic, LLC, by Lennar Homes of California, Inc., its Manager, is the
developer of the Palm Springs Classic, now known as "Escena Palm Springs", Tentative
Tract Map 32233, located on the east side of Gene Autry Trail south of Vista Chino.
This development consists of an 1B-hole golf course, hotel, vacation ownership units,
single family homes, and multi-family homes(with a maximum total of 1,450 units), office
and retail uses, and a fire station site.
Shayne Morgan of David Taussig &Associates, Inc., acting on behalf of Lennar Homes,
submitted an application for formation of a Community Facilities District pursuant to the
Mello-Roos Community Facilities Act of 1982 (the "Act"). In accordance with the Policy,
a pre-application conference with staff was held and the applicant submitted a $10,000
initial application fee. The original application and fee were submitted to the City for
Palm Springs Classic Community Facilities Nlstrict No. t
April 6,2006
Page 2
initial review on February 13, 2004, with a completed formal submittal received on
November 9, 2004. On December 2, 2004, the applicant met with the City's Special
Districts Committee to review the proposed application. Subsequent meetings with the
applicant and the Committee to further refine the application and requested public
financing were held on January 20, 2005, and finally on March 4, 2005,
The proposed application represents the first Mello-Roos Community Facilities District
for the City of Palm Springs. The significant difference with a Mello-Roos CFD and a
standard Special Assessment District is that a Mello-Roos CFD has a broader range of
items that can be included in the District, and the improvements, fees, and other costs
are considered of general benefit to the District, rather than "special benefit" that a
standard Special Assessment District indicates. Further, a Mello-Roos CFD places a
special tax on the properties within the District, while a standard Special Assessment
District places a lien against the properties until the levy (special assessment) is paid.
The applicant is proposing that CFD 1 fund public sewer improvements, water
improvements, reclaimed waterline improvements, traffic signal improvements, sewer
tees, water fees, pay-off of the existing Assessment District 155 assessments (AD 155
was established by the City for construction of the Gene Autry Trail and associated
improvements), Quimby Act park fees, Traffic Uniform Mitigation Fees (TUMF), and all
district formation and financing costs. The total estimated bond amount for CFD 1 is
$15,552,808(see Attachment 1).
The controlling criteria established in the Policy is outlined under Section 4, "Minimum
Requirements," Section 1, "Benefif'. This section indicates that the City should consider
formation of Special Assessment or Community Facility Districts if the following minimum
"benefit' criteria are met:
1. The proposed project shall provide major infrastructure improvements that
significantly benefit the general public, and/or
2. The project shall provide significant financial benefit to the City.
Determining whether the proposed Community Facilities District application meets these
two general criteria is somewhat subjective, The Palm Springs Classic will, with or
without public financing provided by CFD 1, be constructing significant public
improvements along Gene Autry Trail and Vista Chino, including enhanced landscaped
parkways, bikepaths, new traffic signals, and other public improvements required of the
development. Further, the project, with or without public financing provided by CFD 1, is
likely to generate a significant financial benefit to the City through the generation of the
sale of up to 1,450 single or multi-family homes, increased property tax revenues, and
the associated revenues generated by additional residents of Palm Springs.
It is important to note that the Palm Springs Classic development is obligated to provide
the City with a dedication for a one acre fire station site, approved by the Fire Chief, that
the residential units within the development be equipped with fire sprinklers due to the
fact the area is beyond the 5-minute response time, and further, that the project agree to
annex into the future Community Services District to be formed by the City to assess a
special fee to new development for increased police and fire services caused by the
development.
Following the Special Districts Committee's meeting of March 4, 2005, an opinion was
rendered that the proposed application generally meets the controlling criteria as
outlined in the Policy. This opinion was possible following the applicant's proposal to
provide certain developer contributions in conjunction with the formation of the CFD. +
)r ice:
Palm Springs Classic Community Facilities District No. 1
April 6,2005
Page 3
The developer's contribution includes a one-time payment to the City of $1,100,000 and
an agreement to provide and pay for services necessary to prepare construction
drawings for the future fire station site located within the Palm Springs Classic
development, at the north end of Bird Center Drive and off of its main entrance on Chia
Road. These two contributions, which are outlined in the draft Memorandum of
Understanding included as Attachment 2 (subject to further review and approval by the
City Attorney), will allow the City to move forward with construction of the much needed
fire station within the northeast section of the City. On this basis, the Special Districts
Committee determined that the developer's contribution outside of CFD 1 meets the
general criteria of the Policy, and recommends that City Council authorize further
processing of CFD 1 for Palm Springs Classic, LLC.
SUBMITTED: (4, L
DAVID J. BARAKIAN
Director of Public Works, City Engineer
APPROVED:
DAVID H. READY —
City Manager
ATTACHMENTS:
1. Proposed Community Facilities District Bond Financed Facilities Surnmary
2. Draft Memorandum of Understanding
ATTACHMENT
CFD 2005-2 BOND FINANCED FACILITIES SUMMARY
David Taussig &Associates, Inc. 06/27/2005
PROPOSED COMMUNITY FACILITIES DISTRICT No. 2005-2
CITY OF PALM SPRINGS (ESCENA PALM SPRINGS)
BOND FINANCED FACILITIES SUMMARY
Number of Fee per Improvements
Description Units Unit / Fees
City of Palm Springs/ Public Improvements NA NA $2,037,935
West Spine Sewer Improvements[1] NA NA $1,069,744
East Spine Sewer Improvements NA NA $186,700
Traffic Signalization Improvements NA NA $450,000
Assessment District No. 155 Payoff NA NA $331,491
City of Palm Springs/ Fees NA NA $6,383,479
Sewer Connection Fee 1,158 $2,408 $2,788,464
Quimby Park Fees 1,158 $2,440 $2,825,520
TUMF-Detached Units 542 $794 $430,516
TUMF-Attached Units 616 $550 $338,979
Desert Water Agency [21 NA NA $6,465,635
West Spine Water Improvements[11 NA NA $635,571
East Spine Water Improvements NA NA $1,394,634
Reclaimed Water Line Improvements NA NA $1,500,000
Water Connection Fee 1,158 $2,285 $2,646,030
Water Frontage Fee NA NA $289,400
Total CFD Eligible Public Improvements and Fees NA NA $14,887,048
'[1] Project is 100%complete and has not been dedicated to the City of Palm Springs or Desert Water Agency.
[2] Requires the execution of a Joint Community Facilities Agreement prior to CFD formation.
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ATTACHMENT
CFD 2005-2 FINANCIAL SUMMARY
Community
Facilities District
No. 2005-2
(Escena)
HJ
Phase I Financing
Acquisition Fund $10,150,000
I
Reserve Fund 850,000
Capitalized Interest 82000
..Tnnn
Underwriting/OID 300,000
Costs 250,000
Total Financing $12,370,000 Bond Term — 30 Years
Effective Interest Rate — 5.5%
Total Phase I & 11 Bonded Debt
Not to Exceed $21 Million
Phase 11 Financing
Acquisition Fund $4,700,000
Reserve Fund 400,000
Capitalized Interest 400,000
Underwriting/OlD 150,000
Costs 150,000 Estimated Annual Special Taxes:
Total Financing $5,800,000
Detached — 2,200 SqFt $1,650
Detached — 2,800 SqFt $1,950
Attached — 1,300 SqFt $ 850
Attached — 1,600 SqFt $1,050
Bonds Will Not Be Issued Until Overall Effective Tax Rate 1.8%
Issued
to
Value to Lien Equals 4 to 1
Phase 1 $49,480,000
Phase1 00000
hase 11 23,200,000
Value Needed $72,680,000
July(
uly 8, 2005
ATTACHMENT 4
RESOLUTIONS
1..�`'
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
DECLARING ITS INTENTION TO ESTABLISH AND
TO AUTHORIZE THE LEVY OF A SPECIAL TAX
WITHIN COMMUNITY FACILITIES DISTRICT NO.
2005-2 (ESCENA) OF THE CITY OF PALM
SPRINGS
WHEREAS, the City Council has received a petition (including consent and
waiver), (the "Petition"), from Palm Springs Classic, LLC, by Lennar Homes of
California, Inc., its Manager, requesting the institution of proceedings for
formation of a Community Facilities District, pursuant to the Mello-Roos
Community Facilities Act of 1982, commencing with Section 53311 of the
Government Code of the State of California (the "Act"); and
WHEREAS, the City Council has determined that the Petition complies with the
requirements of Government Code Section 53318 and now intends to form
Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs;
and
WHEREAS, the Council desires to adopt this Resolution of Intention as provided
in Section 53321 of the Act to establish a Community Facilities District consisting
of the territory described in Exhibit "A" hereto and incorporated herein by this
reference, which the City Council hereby determines shall be known as
"Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs",
(the "Community Facilities District No. 2005-2" or the "District"), pursuant to the
Act to finance (1) the purchase, construction, modification, expansion,
improvement or rehabilitation of certain real or other tangible property described
in Exhibit "B" attached hereto and incorporated herein by this reference, including
all furnishings, equipment and supplies related thereto; (2) the payment of
development and other fees (collectively, the "Facilities"), which Facilities have a
useful life of five years or longer; (3) the incidental expenses to be incurred in
connection with financing the Facilities and forming and administering the District
(the 'Incidental Expenses"); and (4) payment and retirement of assessments in
Assessment District No. 155 of the City of Palm Springs, (the "AD 155
Payment"); and
WHEREAS, it is the intention of the City Council to consider financing the
Facilities, the Incidental Expenses, and the AD 155 Payment through the
formation of the proposed District and the sale of bonded indebtedness in an
amount not to exceed $21,000,000 within the District and the levy of a special tax
within the District to pay for the Facilities and the Incidental Expenses and to pay
debt service on the bonded indebtedness incurred by the District, provided that
the bond sales and special tax levies are approved at an election to be held
within the District;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Resolution No.
Page 2
Section 1. The above recitals are all true and correct.
Section 2. The City Council hereby determines to institute proceedings for the
formation of a Community Facilities District under the terms of the Act pursuant
to Section 53350 of the Act. The exterior boundaries of the proposed District are
hereby specified and described to be as shown on that certain map, described in
Exhibit "A", now on file in the office of the City Clerk entitled "Proposed
Boundaries of Community Facilities District No. 2005-2 (Escena) of the City of
Palm Springs," which map indicates by a boundary line the extent of the territory
included in the proposed District and shall govern for all details as to the extent of
the proposed District. On the original and one copy of the map of the proposed
District on file in the City Clerk's office, the City Clerk shall endorse the certificate
evidencing the date and adoption of this Resolution of Intention. The City Clerk
shall file the original map in his office and, within fifteen (15) days after the
adoption of this Resolution of Intention, the City Clerk shall cause to have
recorded with the Riverside County Recorder a copy of the endorsed map.
Section 3. The name of the proposed District shall be designated as
"Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs."
Section 4. The Facilities to be financed by the proposed District and to be
financed in part by the proposed District are public infrastructure facilities and
other governmental facilities with an estimated useful life of five years or longer,
which the City of Palm Springs or Desert Water Agency ("DWA") is authorized by
law to construct, acquire, own, operate or contribute revenue to. The City
Council hereby finds and determines that the description of the Facilities herein is
sufficiently informative to allow taxpayers within the proposed District to
understand what the funds of the proposed District may be used to finance. The
Incidental Expenses expected to be incurred include the cost of planning and
designing the Facilities, the costs of forming the District, issuing bonds and
levying and collecting a special tax within the District. The City Council hereby
finds that the proposed Facilities are necessary to meet increased demands
placed upon the City of Palm Springs and DWA as a result of development
occurring within the proposed District. Such Facilities need not be physically
located within the District.
Section 5. Except where funds are otherwise available, it is the intention of the
City Council to levy annually, in accordance with procedures contained in the Act,
a special tax within the proposed District (the "Special Tax") sufficient to pay for
the costs of financing the acquisition and/or construction of the Facilities,
Incidental Expenses and the AD 155 Payment, including the principal and
interest and other periodic costs on bonds or other indebtedness proposed to be
issued to finance the Facilities, Incidental Expenses and the AD 155 Payment,
the establishment and replenishment of reserve funds, the credit enhancement
fees, the costs of administering the levy and collection of the Special Tax and all
other costs of the levy of the Special Tax and issuance of the bonds, including
any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal,
Resolution No.
Page 3
and financial consultant fees, discount fees, interest on bonds due and payable
prior to the expiration of one year from the date of completion of Facilities (but
not to exceed two years), election costs and all costs of issuance of the bonds,
including, but not limited to, fees for bond counsel, disclosure counsel, financing
consultants and printing costs, and all other administrative costs of the tax levy
and bond issue. The Special Tax will be secured by recordation of a continuing
lien against all non-exempt real property in the District. In the first year in which
such a Special Tax is levied, the levy shall include a sum sufficient to repay to
the City all amounts, if any, transferred to the District pursuant to Section 53314
of the Act and interest thereon. The schedule of the rate and method of
apportionment and manner of collection of the Special Tax within the District is
described in detail in Exhibit "C attached hereto and incorporated herein by this
reference. The Special Tax is based upon the cost of financing the Facilities,
Incidental Expenses and the AD 155 Payment in the District, the demand that
each parcel will place on the Facilities and the benefit (direct and/or indirect)
received by each parcel from the Facilities.
The Special Tax within the District is apportioned to each parcel on the foregoing
basis pursuant to Section 53325.3 of the Act. In the event that a portion of the
property within the District shall become for any reason exempt, wholly or
partially, from the levy of the Special Tax, the City Council shall, on behalf of the
District, increase the levy to the extent necessary upon the remaining property
within the District which is not delinquent or exempt in order to yield the required
payments, subject to the maximum tax. If special taxes of the District are levied
against any parcel used for private residential purposes, (i) the maximum special
tax rate shall not be increased over time except that it may be increased by an
amount not to exceed two percent (2%) per year to the extent permitted in the
rate and method of apportionment; (ii) such tax shall be levied for a period not to
exceed forty-five (45) years commencing with Fiscal Year 2005-2006, as further
described in Exhibit "C" attached hereto; and (iii) under no circumstances will
such special tax be increased as a consequence of delinquency or default by the
owner of any other parcels within the District by more than ten percent (10%).
Section 6. The special tax within the proposed District is based on the
expected demand that each parcel of real property within the proposed District
will place on the Facilities and on the benefit that each parcel derives from the
right to access the Facilities. The City Council hereby determines that the
proposed Facilities are necessary to meet the increased demand placed upon
the City of Palm Springs and DWA and the existing infrastructure in the City as a
result of the development of land proposed for inclusion in the District. The
Council hereby determines the rate and method of apportionment of the special
tax for the District set forth in Exhibit "C" attached hereto to be reasonable.
Section 7. A public hearing (the "Hearing") on the establishment of Community
Facilities District No. 2005-2, the proposed rate and method of apportionment of
the Special Tax and the proposed issuance of bonds to finance the Facilities, the
Incidental Expenses and the AD 155 Payment shall be held on September 7,
Resolution No.
Page 4
2005 at 6:00 p.m., or as soon thereafter as practicable, at the chambers of the
City Council of the City of Palm Springs, 3200 East Tahquitz Canyon Way, Palm
Springs, California 92262. Should the City Council determine to form the District,
a special election will be held within the District to authorize the issuance of
bonds and the levy of the Special Tax in accordance with the procedures
contained in Government Code Section 53326. If held, the proposed voting
procedure at the election will be a landowner vote with each landowner who is
the owner of record of land within the District at the close of the Hearing, or the
authorized representative thereof, having one vote for each acre or portion
thereof owned within the District. Ballots for the special election may be
distributed by mail or by personal service.
Section 8. At the time and place set forth above for the Hearing, any
interested person, including all persons owning lands or registered to vote within
the proposed District, may appear and be heard.
Section 9. Each City officer who is or will be responsible for the Facilities to be
financed by the District, if it is established, is hereby directed to study the
proposed District and, at or before the time of the above-mentioned Hearing, file
a report with the City Council, and which is to be made a part of the record of the
Hearing, containing a brief description of the Facilities and services by type which
will in his or her opinion be required to adequately meet the needs of the District
and his or her estimate of the cost of providing the Facilities and services,
including an estimate of the fair and reasonable cost of all Incidental Expenses,
including the cost of planning and designing the Facilities to be financed pursuant
to the Act, the cost of environmental evaluations of such Facilities, all costs
associated with the creation of the District, issuance of bonds, determination of
the amount of any special taxes, collection of any special taxes, or costs
otherwise incurred in order to carry out the authorized purposes of the City with
respect to the District, and any other expenses incidental to the construction,
completion and inspection of the authorized work to be paid through the
proposed financing.
Section 10. The City may accept advances of funds or work-in-kind from any
sources, including private persons or private entities, and is authorized and
directed to use such funds for any authorized purpose, including any cost
incurred in creating the District. The District may enter into an agreement to
repay all of such funds as are not expended or committed for any authorized
purpose at the time of the election on the levy of the Special Tax, if the proposal
to levy such tax should fail, and to repay all of such funds advanced if the levy of
the Special Tax shall be approved by the qualified electors of the District.
Section 11. The City Clerk is hereby directed to publish a notice ("Notice") of
the Hearing pursuant to Section 6061 of the Government Code in a newspaper of
general circulation published in the area of the proposed District. Such Notice
shall contain the text or a summary of this Resolution, state the time and place of
the Hearing, a statement that the testimony of all interested persons or taxpayers
Resolution No.
Page 5
will be heard, a description of the protest rights of the registered voters and
landowners in the proposed District as provided in Section 53324 of the Act and
a description of the proposed voting procedure for the election required by the
Act. Such publication shall be completed at least seven (7) days prior to the date
of the Hearing.
Section 12. The City Clerk may send a copy of the Notice of the Hearing by
first-class mail, postage prepaid, to each registered voter and to each landowner
within the proposed District as shown on the last equalized assessment roll.
Said mailing shall be completed not less than fifteen (15) days prior to the date of
the Hearing.
Section 13. Pursuant to Section 53344.1 of the Act, the City Council hereby
reserves to itself, in its sole discretion, the right and authority by subsequent
Resolution to allow any owner of property within the District, subject to the
provisions of Section 53344.1 of the Act and those conditions as it may impose,
and any applicable prepayment penalties as prescribed in the bond indenture or
comparable instrument or document, to tender to the District treasurer in full
payment or part payment of any installment of the special taxes or the interest or
penalties 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 for the accrued interest shown
thereby computed to the date of tender.
Section 14. The voting procedure with respect to the establishment of the
District and the imposition of the special tax shall be by hand delivered ballot
election.
ADOPTED this 20th day of July 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at
a regular meeting of the City Council of the City of Palm Springs on July 20,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT "A"
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
BOUNDARY MAP
[ATTACHED]
o PROPOSED BOUNDARIES
COMMUNITY FACLITES DISTRICT NO. 2005-2
ESCENA OF PALM SPRINGS
"gyp CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING BOUNDARIES MCD TA LE'N
OF COMMUNITY FACILITIES DISTRICT N0. 2005-2 ( ESCENA OF ua a0 'E6'ase FILED IN THE OFFICE OF THE SECRETARY OF THE BOARD
PALM SPRINGS ) OF THE CITY OF PALM SPRINGS, COUNTY OF WELL 33E2 OF DIRECTORS OF THE CITY OF PALM SPRINGS. COUNTY
RIVERSIDE, STATE OF CALIFORNIA. WAS APPROVED BY THE 6'T AME'22'12' OF RIVERSIDE. STATE OF CALIFORNIA
®p SITE H"Taw' THIS DAY OF 2005.
BOARD OF DIRECTORS OF THE CITY OF PALM SPRINGS AT A nl NAP L-631]'
REGULAR MEETING THEREOF, HELD IXJ
THE DAY OF 2005 °'K1'°"'�
BY RESOLUTION NO. 0"1-'3 E SECRETARY LF THE BOPAO OF DIRECTORS,
my' LM19P' CRY OF PALM SPRINGS
SECRETARY OF OF THE EDAM OF DIRECTORS, a im.w
eeo'
CITY OF PALM SPRINGS
RECORDED THIS DAY OF 2005,
AT THE HOUR O'CLOCK _.M, IN
BOOK OFF PAGE_MAPS OF ASSESSMENT
SEE OEfAIL ABOVE OF HE COUNTY FACILITIES DISTRICTS IN THE OFFICE
V I S T A CHIN O OF THE COUNTY ERECORDERCALIFORNIA IN THE COUNTY OF
LOT "D^ RIVERSIDE, STATE OF ENTN .
N3E•5922'W J092' NO RIVERSIDE,
ID9.OJ' FEE DOCUMENT N0.
NOD'04 21"W 50 00' NB9'Sf'11"W 59]0'N69'50'4fi"W 1141.4]' LARRV W. WARD, RIVERSIDE COUNTY ASSESSOR-
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A=25'27'48" R=277.00' L=123.10'
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PAGE 61-67
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EXHIBIT "B"
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The General Description of the Improvements is as follows:
1 . Street facilities, including, but not limited to, major arterials, highways,
intersections, access ramps, roadways, sidewalk, curb, gutters, striping,
lighting, traffic signalization, signage, landscaping of public streets and rights-
of-way and appurtenant facilities;
2. Storm control facilities, including, but not limited to, storm drains, channels,
detention, headwalls, riprap pads, retention and/or catch basins and
appurtenant facilities;
3. Sewer improvements, sanitary sewers, including, but not limited to, lift
stations, force mains, pump stations, transmission and main lines, valves, and
appurtenant facilities;
4. Domestic water facilities, including, but not limited to, reservoirs, pump
stations, transmission lines, distribution facilities, lift stations, main lines,
valves, fire hydrants and appurtenant facilities;
5. Park and recreational facilities and appurtenant facilities;
6. Impact and other fees, including but not limited to, TUMF, Quimby Act fees,
water fees, drainage fees, sewer treatment and connection fees, water supply
fees, water meter fees, water connection fees and frontage fees, storm drain
fees, and other city fees;
7. Mitigation costs and incidental expenses.
EXHIBIT "B"
(CONTINUED)
OTHER ITEMS TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The District may also finance any of the following:
1. Bond related expenses, including underwriters' discount, reserve fund,
capitalized interest, financial advisor fees and expenses, bond and disclosure
counsel, special tax consultant fees and expenses, dissemination agent fees
and all other incidental expenses.
2. Administrative fees of the City and the Bond trustee or fiscal agent related to
the District and the Bonds.
3. Reimbursement of costs related to the formation of the District advanced by
the City or any related entity, or any landowner or developer within the
District, as well as reimbursement of any costs advanced by the City or any
related entity, or any landowner or developer within the District, for facilities,
fees or other purposes or costs of the District.
4. Payment and retirement of all outstanding unpaid assessments in
Assessment District No. 155 of the City of Palm Springs.
This description of the public capital facilities is general in nature. The final
nature and location of improvements and facilities will be determined upon the
preparation of final plans and specifications. The final plans and specifications
may show substitutions in lieu of, or modifications to, proposed work. Any such
substitution shall not be a change or modification in the proceedings as long as
the facilities provide a service substantially similar to that as set forth in the
Report.
EXHIBIT "C°
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
PRELIMINARY
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA PALM SPRINGS)
CITY OF PALM SPRINGS
A Special Tax shall be levied on all Assessor's Parcels in City of Palm Springs Community Facilities
District No. 2005-2 (Escena Palm Springs) ("CFD No. 2005-2") and collected each Fiscal Year
commencing in Fiscal Year 2005-2006,in an amount determined through the application of the Rate
and Method of Apportiorument as described below. All of the real property in CFD No. 2005-2,
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 land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not 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. The square footage of an Assessor's Parcel is equal to the Acreage of such
parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982,being Chapter 2.5,Part 1,
Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2005-2: 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 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. 2005-2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2005-2 or any designee thereof of
complying with City, CFD No. 2005-2 or obligated persons disclosure requirements of
applicable federal and state securities laws and 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.2005-2 or any designee thereof related to an appeal of
the Special Tax;the costs associated with the release of funds from any escrow account; and
the City's annual administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 2005-2 for any
other administrative purposes of CFD No. 2005-2,including attorney's fees and other costs
related to commencing and pursuing to completion any foreclosure as a result of delinquent
Special Taxes.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
City ofPahn Springs(Escena Patin Springs) July 8,2005
CFD No. 2005-2 Page I
PRELIMINARY
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property, as determined in accordance with Section C.L(b) below.
"Authorized Facilities" means those authorized improvements eligible under the Act and
provided by CFD No. 2005-2 under the authorized bonding program for CFD No. 2005-2.
"Backup Special Tax " means the Special Tax applicable to each Assessor's Parcel of
Developed Property in each Zone, as deternined in accordance with Section C.L(c)below.
"Bonds" means any bonds or other debt(as defined in Section 53317(d)of the Act),whether
in one or more series, issued by CFD No. 2005-2 under the Act.
"Certificate of Occupancy" means a certificate issued by the City that authorizes the actual
occupancy of a dwelling unit for habitation by one or more residents.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2005-2" means City of Palm Springs Community Facilities District No. 2005-2
(Escena Pahm Springs).
"City" means the City of Palm Springs, California.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
2005-2.
"County" means the County of Riverside, California.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which the
Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a building
permit for new construction was issued after January 1,2005 and on or before May 1 of the
Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied.
"Final Mapped Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Developed Property, Taxable Property Owner Association Property or Taxable Public
Property, which as of January 1 of the previous Fiscal Year was located within a Final
Subdivision.
"Final Subdivision" means a subdivision of property by recordation of a final map,parcel
map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government
Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California
Civil Code Section 1352 that creates individual lots for which building permitsh y�l��aev
issued without further subdivision.
City of Patin Springs(Eseena Pahn Springs) July 8,2005
CFD No. 2005-2 Page 2
PRELIMINARY
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified,amended and/or supplemented from time to
time.
"Initial Maximum Special Tax" means the initial maximum Special Tax, determined in
accordance with Section C.2.(a) below, that can be levied in any Fiscal Year on any
Assessor's Parcel of Final Mapped Property and Undeveloped Property.
"Land Use Class" means any of the classes listed in Table 1 below.
"Maximum Special Tax" means the maximum Special Tax,determined in accordance with
Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which
abuilding permit permitting the constriction of one or more non-residential units or facilities
has been issued by the City.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property" means,for each Fiscal Year,anypropertywithin
the boundaries of CFD No. 2005-2 that was owned by a property owner association,
including any master or sub-association, as of January 1 of the prior Fiscal Year.
"Proportionately" means, for Developed Property, that the ratio of the actual Special Tax
levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property.
For Final Mapped Property, "Proportionately"means that the ratio of the actual Special Tax
levy per Acre to the Initial Maximum Special Tax per Acre is equal for all Assessor's Parcels
of Final Mapped Property. For Undeveloped Property, "Proportionately"means that the ratio
of the actual Special Tax levy per Acre to the Initial Maximum Special Tax per Acre is equal
for all Assessor's Parcels of Undeveloped Property. The tern "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section D below.
"Public Property" means, for each Fiscal Year, (i) any property within the boundaries of
CFD No. 2005-2 owned by,irrevocably offered or dedicated to,or over,or through or under
which an easement for purposes of public right-of-way has been granted, to the federal
government,the State,the County,the City,or any local government or other public agency
as of January 1 of the previous Fiscal Year, provided that any property leased by a public
agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be
taxed and classified according to its use; or(ii) any property within the boundaries of CFD
No. 2005-2 that was encumbered, as of January 1 of the previous Fiscal Year, by an
unmanned utility easement making impractical its utilization for other than the purpose set
forth in the easement.
( 1?." r7
City ofPahn Springs(Lscena Palm Springs) July 8,2005
CFD No. 2005-2 Page 3
PRELIMINARY
"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 determination of Residential Floor Area for an
Assessor's Parcel shall be made by reference to the building pennit(s) issued for such
Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit pennitting the construction thereon of one or more residential dwelling units
has been issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for attached residential units.
"Single Family Detached Property" means all Assessor's Parcels of Residential Property
For which building permits have been issued for detached residential units.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2005-2 to fiord the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2005-2 to: (i) pay debt service on all Outstanding Bonds due in the calendar year
commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not
limited to, credit enhancement and rebate payments on the Bonds due in the calendar year
commencing in such Fiscal Year; (iii)pay Administrative Expenses; (iv)pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay
directly for acquisition or construction of Authorized Facilities to the extent that the
inclusion of such amount does not increase the Special Tax levy on Undeveloped Property;
(vi)pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate
for the Special Tax levy in the previous Fiscal Year; less (vii) a credit for funds available to
reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the
Indenture.
"State" means the State of California.
"Taxable Property" means all ofthe Assessor's Parcels within the boundaries of CFD No.
2005-2 that are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt from the
Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public
Property that are not exempt from the Special Tax pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
City ofPalrn Springs(Eseena Palm Springs) July 8,2005
CFD No. 2005-2 Page 4
PRELIMINARY
"Undeveloped Property" means,for each Fiscal Year,all Taxable Property not classified as
Developed Property,Final Mapped Property,Taxable Property Owner Association Property
or Taxable Public Property.
"Zone" means Zone 1 or Zone 2, as applicable.
"Zone V means all property currently within CFD No. 2005-2 which is not located in Zone
2.
"Zone 2" means the land area geographically identified as Lots 44 through 50 in Tract Map
No. 32233-1 recorded with the County on May 23, 2005 as Document No. 2005-0409493.
Zone 2 may be subject to amendment from time-to-time or modification pursuant to a final
map or precise site plan for such property at the sole discretion of the CFD Administrator
provided that such amendment or modification will not reduce the amount of Maximum
Special Tax below the amount required to equal at least 1.1 tines the maximum annual debt
service on all Outstanding Bonds, plus the Administrative Expenses.
B. ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, all Taxable Property within CFD No. 2005-2 shall be assigned to a Zone
and further classified as Developed Property,Final Mapped Property,Undeveloped Property,
Taxable Property Owner Association Property, or Taxable Public Property, and shall be
subject to Special Taxes in accordance with this Rate and Method of Apportiomnent
determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
Residential Property shall be assigned to Land Use Classes 1 through 9 as listed in Table 1
below based on the type of use and the Residential Floor Area for each unit. Non-Residential
Property shall be assigned to Land Use Class 10. With respect to Residential Property, the
Residential Floor Area shall be determined from the most recent building permit issued prior
to the issuance of a Certificate of Occupancy for such Assessor's Parcel.
1. Developed Property
(a) Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the arnount derived by
application of the Assigned Special Tax or (ii) the amount derived by
application of the Backup Special Tax.
(b) Assigned Special Tax
The Fiscal Year 2005-2006 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
City of Palm Springs(Escena Palm Springs) July 8,2005
CFD No. 2005-2 . Page 5
PRELIMINARY
TABLE 1
Fiscal Year 2005-2006
Assigned Special Taxes for Developed Property
Land Use Residential Assigned
_j
Description
Class Floor Area Special Tax
1 Single Family Detached Property More than 3,200 sq. ft. $2,450 per unit
2 Single Family Detached Property 2,801 — 3,200 sq. ft. $2,150 per unit
3 Single Family Detached Property 2,501 —2,800 sq. ft. $1,950 per unit
4 Single Family Detached Property 2,201 —2,500 sq. ft. $1,800 per unit
5 Single Family Detached Property Less than 2,201 sq. ft. $1,650 per unit
6 Single Family Attached Property More than 1,600 sq. ft. $1,450 per unit
7 Single Family Attached Property 1,401 — 1,600 sq. ft. $1,050 per unit
8 Single Family Attached Property 1,201 — 1,400 sq. ft. $850 per unit
9 Single Family Attached Property Less than 1,201 sq. ft. $550 per unit
10 Non-Residential Property NA $11,662 per Acre
(c) Backup Special Tax
The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final
Subdivision in Zone 1 or Zone 2 will equal the applicable Backup Special
Tax for such Zone, identified in Table 2 below,multiplied by the Acreage of
all Taxable Property, exclusive of any Taxable Property Owner Association
Property and Taxable Public Property, therein. The Backup Special Tax for
each Assessor's Parcel of Residential Property shall be computed by dividing
the Backup Special Tax attributable to the applicable Final Subdivision by
the number of Assessor's Parcels for which building permits for residential
constriction have or may be issued(i.e., the number of residential lots). The
Backup Special Tax for each Assessor's Parcel of Non-Residential Property
in Zone 1 or Zone 2 shall equal the applicable Backup Special Tax for such
Zone, identified in Table 2 below, multiplied by the Acreage of such
Assessor's Parcel.
TABLE 2
Fiscal Year 2005-2006
Backup Special Tax for Developed Property
Special Tax Classification Backup Special Tax
Zone 1 $12,277 per Acre
Zone 2 $16,907 per Acre
City ofPalm Springs(Escena Palm Springs) July 8,2005
CFD No. 2005-2 Page 6
PRELIMINARY
If a Final Subdivision includes Assessor's Parcels of Taxable Property for
which building permits for both residential and non-residential construction
may be issued, exclusive of Taxable Property Owner Association Property
and Taxable Public Property, then the Backup Special Tax for each
Assessor's Parcel of Residential Property shall be computed exclusive of the
Acreage and Assessor's Parcels of property for which building permits for
non-residential construction may be issued.
Notwithstanding the foregoing, if all or any portion of the Final
Subdivision(s)described in the preceding paragraphs is subsequently changed
or modified by recordation of a lot line adjustment or similar instrument, and
only if the CFD Administrator determines that such change or modification
results in a decrease in the number of Assessor's Parcels of Taxable Property
for which building permits for residential construction have or may be issued
within such Final Subdivision, then the Backup Special Tax for each
Assessor's Parcel of Developed Property that is part of the lot line adjustment
or similar instrument for such Final Subdivision shall be a rate per Acre as
calculated below. The Backup Special Tax previously determined for an
Assessor's Parcel of Developed Property that is not part of the lot line
adjustment or similar instrument for such Final Subdivision shall not be
recalculated.
1. Detennine the total Backup Special Tax anticipated to apply to
the changed or modified portion of the Final Subdivision area
prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the Acreage
of Taxable Property which is ultimately expected to exist in such
changed or modified portion of the Final Subdivision area, as
reasonably determined by the CFD Administrator.
3. The result of paragraph 2 above shall be the Backup Special Tax
per Acre which shall be applicable to Assessor's Parcels of
Developed Property in such changed or modified portion of the
Final Subdivision area for all remaining Fiscal Years in which the
Special Tax may be levied.
City of Palm Springs(Escena Palm Springs) July 8,2005
CFD No. 2005-2 Page 7
PRELIMINARY
Furthermore, all Assessors' Parcels within CFD No. 2005-2 will be relieved
simultaneously and permanently from the obligation to pay and disclose the
Backup Special Tax if the CFD Administrator determines that(i) the annual
debt service required for the Outstanding Bonds, when compared to the
Assigned Special Taxes that may be levied against all Assessors' Parcels of
Developed Property in CFD No. 2005-2 result in 110%debt service coverage
(i.e., the Assigned Special Taxes that may be levied against all Developed
Property in CFD No. 2005-2 in each remaining Fiscal Year based on then
existing development in CFD No. 2005-2 is at least equal to the sum of(a)
the Administrative Expenses and (b) 1.10 times maximum annual debt
service in each remaining Fiscal Year on the Outstanding Bonds), and(ii)all
authorized Bonds have already been issued or the Council has covenanted
that it will not issue any additional Bonds (except refunding bonds) to be
supported by the Special Tax in CFD No. 2005-2.
(d) Increase in the Assigned Special Tax and Backup Special Tax
The Fiscal Year 2005-2006 Assigned Special Tax, identified in Table 1
above, and Baclatp Special Tax, identified in Table 2 above, shall not be
subject to change and shall therefore remain the same in every Fiscal Year.
(e) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may contain
more than one Land Use Class. The Maximum Special Tax levied on an
Assessor's Parcel shall be the sum of the Maximum Special Tax for all Land
Use Classes located on that Assessor's Parcel. The CFD Administrator's
allocation to each type of property shall be final.
2. Final Mapped Property, Undeveloped Property, Taxable Property Owner
Association Property, and Taxable Public Property
(a) Initial Maximum Special Tax
The Fiscal Year 2005-2006 Initial Maximum Special Tax for Final Mapped
Property and Undeveloped Property in Zone 1 or Zone 2 shall be$11,662 per
Acre, and shall not be subject to change and shall therefore remain the same
in every Fiscal Year.
(b) Maximum Special Tax
The Fiscal Year 2005-2006 Maximum Special Tax for Final Mapped
Property, Undeveloped Property, Taxable Property Owner Association
Property, and Taxable Public Property in Zone 1 or Zone 2 shall be$16,907
per Acre, and shall not be subject to change and shall therefore remain the
same in every Fiscal Year.
City ofPabn Springs(Escena Palms Springs) July 8,2005
CFD No. 2005-2 Page 8
PRELIMINARY
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement and shall levy the Special Tax until the total
Special Tax levy equals the Special Tax Requirement subject to the Maximum Special Tax.
The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in
Zone 1 -,aid Zone 2 in an amount equal to 100% of the applicable Assigned Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Final Mapped Property in Zone 1 at up to 100%of the hritial Maximum
Special Tax for Final Mapped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
second step has been completed, the Special Tax shall he levied Proportionately on each
Assessor's Parcel of Undeveloped Property in Zone I at up to 100%of the Initial Maximum
Special Tax for Undeveloped Properly;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
third step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Final Mapped Property in Zone 2 at up to 100%of the Initial Maximum
Special Tax for Final Mapped Property;
Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the fourth
step has been completed,the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Undeveloped Properly in Zone 2 at up to 100%of the Initial Maximum Special Tax
for Undeveloped Property;
Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the fifth
step has been completed,then the levy of the Special Tax on each Assessor's Parcel of Final
Mapped Property and Undeveloped Property in Zone 1 and Zone 2 shall be increased in
equal percentages from the Initial Maximum Special Tax up to 100% of the Maximum
Special Tax for Final Mapped Property and Undeveloped Property;
Seventh: If additional monies are needed to satisfy the Special Tax Requirement after the
sixth step has been completed,then the levy of the Special Tax on each Assessor's Parcel of
Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is determined
through the application of the Backup Special Tax shall be increased in equal percentages
from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's
Parcel;
Eighth: If additional monies are needed to satisfy the Special Tax Requirement after the
seventh step has been completed, then the Special Tax shall be levied Proportionately on
each Assessor's Parcel of Taxable Public Property and Taxable Property Owner Association
Property at up to the 100% of Maximum Special Tax for Taxable Public Pro gty^and
Taxable Property Owner Association Property.
City of Palm Springs(Eseena Pali:Springs) July 8, 2005
iCFD No. 2005-2 Page 9
PRELIMINARY
Notwithstanding the above the Council may, in any Fiscal year, levy Proportionately less
than 100%of the Assigned Special Tax in step one(above),when(i)the Council is no longer
required to levy the Special Tax pursuant to steps two through eight above in order to meet
the Special Tax Requirement, ii) all authorized Bonds have already been issued or the
Council has covenanted that it will not issue any additional Bonds(except refunding bonds)
to be supported by the Special Tax, and(iii) all Authorized Facilities have been constructed
and/or acquired.
Further notwithstanding the above, under no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential Property for which a Certificate of Occupancy
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. 2005-2.
E. EXEMPTIONS
No Special Tax shall be levied on up to 59.9 Acres of Public Property and Property Owner
Association Property in Zone 1 and up to 15.3 Acres of Public Property and Property Owner
Association Property in Zone 2. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Public Property and/or
Property Owner Association Property. Ilowever, should an Assessor's Parcel no longer be
classified as Public Property or Property Owner Association Property, its tax-exempt status
will be revoked.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the eighth step in Section D.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may submit a written appeal to CFD No. 2005-2. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs,the amount of
the Special Tax levied shall be appropriately modified.
The Council may interpret this Rate and Method of Apportionment for purposes of clarifying
any ambiguity and make determinations relative to the annual administration of the Special
Tax and any landowner or resident appeals. Any decision of the Council shall be final and
binding as to all persons.
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. 2005-2 may directly bill the
Special Tax, may collect Special Taxes at a different time or in a different manner if
necessary to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on delinquent Assessor's Parcels as permitted by the Act. .,
City ofPabn Springs(Escena Patin Springs) July 8, 2005
CFD No. 2005-2 Page 10
PRELIMINARY
H. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section H:
"Buildout" means, for CFD No. 2005-2, that all expected building permits have been
issued.
"CFD Public Facilities" means either$14,887,048 in 2005 dollars,which shall increase by
the Construction hnflation Index on July 1, 2006, and on each July 1 thereafter,or such lower
number as (i) determined by the CFD Administrator as sufficient to provide the Authorized
Facilities,or(ii)determined by the Council concurrently with a covenant that it will not issue
any more Bonds(except refunding bonds)to be supported by the Special Taxes levied under
this Rate and Method of Apportionment as described in Section D.
"Construction Inflation Index" means the annual percentage change in the Engineering
News Record Building Cost Index for the City of Los 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 detennined 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" means the CFD Public Facilities minus (i) public facility costs
previously paid fi-om the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and(iii)moneys currently on deposit in an escrow fund that are expected
to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Indenture after the first interest and/or principal payment
date following the current Fiscal Year.
1. Prepayment in Full
The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and
permanently satisfied as described herein;provided that a prepayment may be made
only for Assessor's Parcels of Developed Property, or an Assessor's Parcel of Final
Mapped Property or Undeveloped Property for which a building permit has been
issued, and 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 obligation shall provide the CFD Administrator
with written notice of intent to prepay. Within 30 days of receipt of such written
notice,the CFD Administrator shall notify such owner of the prepayment amount for
such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for
providing this service. Prepayment must be made not less than 45 days prior to the
City of'Palni Springs(EseeltaPalni Springs) July 8,2005
CFD No. 2005-2 Page 11
PRELIMINARY
next occurring date that notice of redemption of Bonds from the proceeds of such
prepayment may be given by the Trustee pursuant to the indenture.
The Special Tax Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
Bond Redemption Amount
phis Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment,the Special Tax Prepayment Amount shall be
calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax. For Assessor's Parcels of Final Mapped Property and
Undeveloped Property for which a building permit has been issued, compute the
Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it
was already designated as Developed Property,based upon the building permit which
has already been issued for that Assessor's Parcel.
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total
estimated Assigned Special Taxes for the entire CFD No. 2005-2 based on the
Developed Property Special Taxes which could be levied in the current Fiscal Year
on all expected development through Buildout of CFD No. 2005-2, excluding any
Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total
estimated Backup Special Taxes at Buildout for the entire CFD No. 2005-2,
excluding any Assessor's Parcels which have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Previously Issued Bonds to compute the amount of Previously Issued Bonds to be
retired and prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redemption price-100%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
City oj'Pabn Springs(Escena Palma Springs) July 8,2005
CFD No. 2005-2 Page 12
PRELIMINARY
7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
amount determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Amount").
8. Compote the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal Year
until the earliest redemption date for the Previously Issued Bonds.
9. Determine the Special Tax 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 Special Tax Prepayment Amount less the Future
Facilities Amount and the Administrative Fees and Expenses (defined below) from
the date of prepayment until the redemption date for the Previously Issued Bonds to
be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount
computed pursuant to paragraph 10 (the "Defeasance Amount").
12. The administrative fees and expenses of CFD No. 2005-2 are as calculated by the
CFD Administrator and include 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 Expenses").
13. The reserve fiend 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 Previously Issued Bonds as a result of the
prepayment,or(b)the amount derived by subtracting the new reserve requirement(as
defined in the Indenture)in effect after the redemption of Previously Issued 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. No Reserve Fund Credit
shall be granted if the amount then on deposit in the reserve fund for the Previously
Issued Bonds is below 100%of the reserve requirement(as defined in the Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the larger quotient computed pursuant to paragraph 3(a)or
3(b) by the expected balance in the capitalized interest fund or account under the
hndenture after such first interest and/or principal payment(the "Capitalized Interest
Credit").
15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant
to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs
13 and 14 (the "Prepayment Amount").
City of'Paln:Springs(Escena Paine Springs) July 8,2005
CFD No. 2005-2 Page 13
PRELIMINARY
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13
and 14 shall be deposited into the appropriate fund as established under the Indenture and be
used to retire Bonds or make debt service payments. The amount computed pursuant to
paragraph 7 shall be deposited into the Improvement Fund. The amount computed pursuant
to paragraph 12 shall be retained by CFD No. 2005-2.
The Special Tax Prepayment Amount maybe insufficient to redeem a fall$5,000 increment
of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be
retained in the appropriate fund established under the Indenture to be used with the next
Prepayment of Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined under
paragraph 9 (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, the Council shall cause a suitable notice to be recorded in
compliance with the Act,to indicate the prepayment of the Special Tax and the release of the
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2005-2 (after excluding 59.9 Acres of Public
Property and Property Owner Association Property in Zone 1 and 15.3 Acres of Public
Property and Property Owner Association Property in Zone 2 as set forth in Section E)both
prior to and after the proposed prepayment is at least equal to the sum of (i) the
Administrative Expenses and (ii) 1.10 times maximum annual debt service, in each
remaining Fiscal Year on the Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property, or an Assessor's Parcel of
Final Mapped Property or Undeveloped Property for which a building permit has been
issued, may be partially prepaid. The amount of the prepayment shall be calculated as in
Section H.1; except that a partial prepayment shall be calculated according to the following
formula:
PP = [(PE—A) x F] +A
These terms have the following meaning:
PP = the partial prepayment.
PE = the Special Tax Prepayment Amount calculated according to Section H.,1.
F = the percentage, expressed as a decimal,by which the owner of the Assessor's Parcel
is partially prepaying the Special Tax.
A= the Administrative Fees and Expenses calculated according to Section H.1.
City of Palm Springs(Eseena Palnz Springs) July 8,2005
CFD No. 2005-2 Page 14
PRELIMINARY
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax and the percentage
by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner
with a statement of the amount required for the partial prepayment of the Special Tax for an
Assessor's Parcel within 30 days of the request and may charge a reasonable fee for
providing this service. With respect to any Assessor's Parcel that is partially prepaid, the
Council shall (i)distribute the funds remitted to it according to Section H.1,and(ii)indicate
in the records of CFD No. 2005-2 that there has been a partial prepayment of the Special Tax
and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the
outstanding percentage(1.00-F)of the remaining Maximum Special Tax, shall continue to
be levied on such Assessor's Parcel pursuant to Section D.
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty-five years commencing with
Fiscal Year 2005-2006,provided however that the Special Tax will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined(i)that all required interest and
principal payments on the CFD No. 2005-2 Bonds have been paid; and (ii) all Authorized
Facilities have been acquired and all reimbursements to the developer have been paid.
City of Palm Springs (Eseena Palm Springs) July 8,2005
CFD No. 2005-2 Page 15
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
DECLARING ITS INTENTION TO INCUR BONDED
INDEBTEDNESS IN THE AMOUNT NOT TO
EXCEED $21,000,000 WITHIN COMMUNITY
FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF
THE CITY OF PALM SPRINGS
WHEREAS, the City Council upon receipt of a petition (including consent and
waiver) (the "Petition") as provided in Section 53318 of the Government Code of
the State of California instituted proceedings to form Community Facilities District
No. 2005-2 (Escena) of the City of Palm Springs (the "Community Facilities
District No. 2005-2" or the "District'), pursuant to the Mello-Roos Community
Facilities Act of 1982, commencing with Section 53311 of the Government Code
of the State of California (the "Act'), as amended, pursuant to a resolution
adopted by the Council on the date hereof to finance (1) the purchase,
construction, modification, expansion, improvement or rehabilitation of public
facilities and the payment of development, impact and other fees required
therefore, identified in Exhibit "A" attached hereto and incorporated herein by this
reference, including all furnishings, equipment and supplies related thereto
(collectively, the "Facilities"); (2) the incidental expenses to be incurred in
financing the Facilities and forming and administering the District (the "Incidental
Expenses"); and (3) payment and retirement of assessments in Assessment
District No. 155 of the City of Palm Springs, (the "AD 155 Payment'); and
WHEREAS, in order to finance the Facilities, Incidental Expenses and the AD
155 Payment, the Council intends to authorize the issuance of bonds for the
proposed District in the maximum aggregate amount of not to exceed
$21,000,000 within the District; and
WHEREAS, the repayment of the bonds of the District is to be secured by special
taxes levied in the proposed District in accordance with Section 53328 of the Act,
other than those properties exempted from taxation in the rate and method of
apportionment for the proposed District set forth in Exhibit "C", adopted by the
City Council by previous Resolution.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. It is necessary to incur bonded indebtedness within the boundaries
of the proposed District in an amount not to exceed $21,000,000, to finance the
costs of the Facilities, Incidental Expenses and the AD 155 Payment, as
permitted by the Act.
Resolution No.
Page 2
Section 3. The bonds for the proposed District will be issued for the purpose of
financing the costs of the Facilities and the Incidental Expenses, including, but
not limited to, the funding of reserve funds for the bonds, the financing of costs
associated with the issuance of the bonds and all other costs and expenses
necessary to finance the Facilities which are permitted to be financed pursuant to
the Act, and the payment of all outstanding and unpaid assessments in
Assessment District No. 155 of the City of Palm Springs.
Section 4. It is the intent of the Council to authorize the sale of bonds for the
proposed District in one or more series, in the maximum aggregate principal
amount not to exceed $21,000,000 within the proposed District and at a
maximum interest rate not in excess of 12 percent per annum or such rate not in
excess of the maximum rate permitted by law at the time the bonds are issued.
The term of the bonds of each series shall be determined pursuant to a
Resolution of the City Council acting in its capacity as the legislative body of the
District authorizing the issuance of the bonds of such series, but such term shall
in no event exceed 40 years or such longer term as is then permitted by law.
Section 5. The City Council hereby declares its intention to conduct a Public
Hearing concerning the proposed debt issue in accordance with the Act. Any
interested persons, including all persons owning land or registered to vote within
the proposed District, may appear and be heard at the Hearing.
Section 6. Notice is hereby given that a Public Hearing on these matters will
be held by the City Council on Wednesday September 7, 2005 at 6:00 p.m., or as
soon thereafter as feasible in the City Council Chambers at City Hall, located at
3200 E. Tahquitz Canyon Way, Palm Springs, California.
Section 7. The proposition to incur bonded indebtedness in the maximum
aggregate principal amount not to exceed $21,000,000 shall be submitted to the
qualified electors of the District. A special community facilities district election
shall be conducted on September 7, 2005, which shall be conducted by a hand
delivered or mailed ballot election. The ballots shall be returned to the office of
the election officer no later than 11:00 a.m. on September 7, 2005.
Section 8. The City Clerk shall cause notice to be given of the time and place
of the Public Hearing by causing the publishing of this Resolution once in the
local paper not less than seven (7) days before the date of the hearing and by
posting a copy of this Resolution on the official bulletin board customarily used by
the City Council for the posting of such notices, pursuant to the Act.
Resolution No.
Page 3
ADOPTED this 20th day of July 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at
a regular meeting of the City Council of the City of Palm Springs on July 20,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT "A"
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The General Description of the Improvements is as follows:
1. Street facilities, including, but not limited to, major arterials, highways,
intersections, access ramps, roadways, sidewalk, curb, gutters, striping,
lighting, traffic signalization, signage, landscaping of public streets and rights-
of-way and appurtenant facilities;
2. Storm control facilities, including, but not limited to, storm drains, channels,
detention, headwalls, riprap pads, retention and/or catch basins and
appurtenant facilities;
3. Sewer improvernents, sanitary sewers, including, but not limited to, lift
stations, force mains, pump stations, transmission and main lines, valves, and
appurtenant facilities;
4. Domestic water facilities, including, but not limited to, reservoirs, pump
stations, transmission lines, distribution facilities, lift stations, main lines,
valves, fire hydrants and appurtenant facilities;
5. Park and recreational facilities and appurtenant facilities;
6. Impact and other fees, including but not limited to, TUMF, Quimby Act fees,
water fees, drainage fees, sewer treatment and connection fees, water supply
fees, water meter fees, water connection fees and frontage fees, storm drain
fees, and other city fees;
7. Mitigation costs and incidental expenses.
EXHIBIT "A"
(CONTINUED)
OTHER ITEMS TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The District may also finance any of the following:
5. Bond related expenses, including underwriters' discount, reserve fund,
capitalized interest, financial advisor fees and expenses, bond and disclosure
counsel, special tax consultant fees and expenses, dissemination agent fees
and all other incidental expenses.
6. Administrative fees of the City and the Bond trustee or fiscal agent related to
the District and the Bonds.
7. Reimbursement of costs related to the formation of the District advanced by
the City or any related entity, or any landowner or developer within the
District, as well as reimbursement of any costs advanced by the City or any
related entity, or any landowner or developer within the District, for facilities,
fees or other purposes or costs of the District.
8. Payment and retirement of all outstanding unpaid assessments in
Assessment District No. 155 of the City of Palm Springs.
This description of the public capital facilities is general in nature. The final
nature and location of improvements and facilities will be determined upon the
preparation of final plans and specifications. The final plans and specifications
may show substitutions in lieu of, or modifications to, proposed work. Any such
substitution shall not be a change or modification in the proceedings as long as
the facilities provide a service substantially similar to that as set forth in the
Report.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AND ORDERING THE EXECUTION
OF THAT CERTAIN DEPOSIT AND
REIMBURSEMENT AGREEMENT WITH PALM
SPRINGS CLASSIC, LLC; AND MAKING CERTAIN
FINDINGS AND DETERMINATIONS IN
CONNECTION THEREWITH
WHEREAS, there has been filed with the City Clerk that certain Deposit and
Reimbursement Agreement (the "Deposit and Reimbursement Agreement"), by
and between the City of Palm Springs (the "City') and Palm Springs Classic,
LLC, a Delaware Limited Liability Company (the "Developer"), the developer of
the real property (the "Property') described on Exhibit "A" attached hereto and
incorporated herein by this reference; and
WHEREAS, the Deposit and Reimbursement Agreement, the form of which is on
file with the City Clerk and by this reference incorporated herein, provides for the
deposit with City of certain funds to cover City expenses in connection with the
formation of a Community Facilities District comprising said Property, and
providing the means by which such deposit may be reimbursed to the Developer,
such reimbursement to come from the proceeds from the sale of special tax
bonds to be issued pursuant to the Mello-Roos Community Facilities Act of 1982
(the "Mello-Roos Act'); and
WHEREAS, the City Council finds that the approval and execution of the Deposit
and Reimbursement Agreement is in the best interest of the City and provides
the means by which such property development may occur without putting
general funds of the City at risk; and
WHEREAS, City will hold and disburse such funds pursuant to the Deposit and
Reimbursement Agreement;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. That the Deposit and Reimbursement Agreement in the form on file
with the City Clerk is hereby approved.
Section 3. That the City Manager or Director of Finance is hereby authorized
and directed to execute the Deposit and Reimbursement Agreement for and on
behalf of the City.
Resolution No.
Page 2
Section 4. The City Manager or Director of Finance is hereby instructed to
receive the cash deposit heretofore made by the Developer and deposit the
same in a designated account to be used to pay the formation costs of the
Community Facilities District and the proper costs related thereto. Upon receipt
of bond proceeds, such funds advanced by the Developer shall be reimbursed to
the Developer from bond proceeds pursuant to the Deposit and Reimbursement
Agreement.
ADOPTED this 20th day of July 2005,
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at
a regular meeting of the City Council of the City of Palm Springs on July 20,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT "A"
PROPERTY DESCRIPTION
Tract Map No. 32233-1 - Planning Area 8
Tract Map No. 32233-2 - Planning Areas 7B & 7C
Tract Map No. 32233-3 - Planning Areas 9A & 9B
Tract Map No. 32233-4 - Planning Area 6
51 AL IRE
& 18881 Von Korman Ave.
WYIVDER, LLP Suite 400
AT TO RN ESS AT LAw Irvine,CA 92612
Phone 949.223.1170
www.awittorneys.com Fax 949.223.1180
July 12, 2005
SENDER'S E-iVIAIL:
USC11REINER@AWATTORNEYS.CO W
VIA OVERNIGHT EXPRESS
.Tames Thompson
City Clerk r�
3200 E. Tahquitz Canyon Way —�
Palm Springs, CA 92262
Re: Escena
Dear Mr. Thompson: =y u
CD 7J
Enclosed please the following with respect with the above project:
rr
1. Petition, Consent and Waiver to be placed on file in your office;
2. Deposit and Reimbursement Agreement to be approved by the City Council at the
July 20th Meeting a form of resolution approving this document has been
provided;
3. Check for $76,500.00 to be placed in on account for the project
I'm faxing you this material today with the original being sent overnight so they will
arrive in your office tomorrow. Please call if you have any questions.
Sincerely yours,
ALESHIRE & WYNDER, LLP
Urban J. Schreiner
UJS:ct
cc: Doug Holland Esq.- City Attorney
Craig Graves - Director of Finance
Suzanne Q. Harrell—Financial Advisor
Robert M. Haight, Esq. —Developer Counsel
01003/0080/00
DEPOSIT AND REIMBURSEMENT AGREEMENT
THIS DEPOSIT AND REIMBURSEMENT AGREEMENT (this "Deposit
Agreement"), dated as of July 11, 2005 for identification purposes only, is by and
between the City of Palm Springs, California (the "City") and Palm Springs Classic,
LLC, a Delaware limited liability company (the "Owner").
RECITALS
WHEREAS, the City has determined to initiate proceedings to create a
community facilities district designated "Community Facilities District No. 2005-1
(Escena) of the City of Palm Springs" (the "Community Facilities District") under the
Mello-Roos Community Facilities Act of 1982 (the "Act"); and
WHEREAS, Owner is the owner of the real property within the proposed
Community Facilities District; and
WHEREAS, in accordance with City's policy regarding use of the Act,
the Owner is required to compensate the City for all costs incurred in the formation of the
Community Facilities District and issuance of bonds for the Community Facilities
District; and
WHEREAS, Section 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 limited to, private persons
or private entities and may provide, by resolution, for the use of those funds for any
authorized purpose, including, but not limited to, paying any cost incurred by the local
agency in creating a community facilities district (including the issuance of bonds
thereby); and
WHEREAS, Section 53314.9 of the Act further provides that the
legislative body may enter into an agreement, by resolution, with the person or entity
advancing the funds, to repay all or a portion of the funds advanced, as determined by the
legislative body, with or without interest under all of the following conditions: (a) the
proposal to 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 the community facilities district pursuant to
Section 53325.1 of the Act (including the issuance of bonds thereby), (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 any funds which have not been committed for any authorized purpose by the
time of the election to the person or entity advancing the funds; and
01003/0080/40169 01 1
WHEREAS, the City and the Owner desire to enter into this Deposit
Agreement in accordance with Section 53314.9 of the Act in order to provide for the
advancement of funds by the Owner to be used to pay costs incurred in connection with
the formation of the Comrmmity Facilities District and issuance of special tax bonds for
the Community Facilities District (the "Bonds"), and to provide for the reimbursement to
the Owner of such fiords advanced, without interest, from the proceeds of any Bonds:
NOW, THEREFORE, for and in consideration of the mutual promises
and covenants herein contained, the parties hereto agree as follows:
Section 1. The Deposits and Application Thereof.
(a) The Owner has deposited herewith the amount of $76,500 (the
"Initial Deposit"). The City, by its execution hereof, acknowledges receipt of, and
accepts, the Initial Deposit.
(b) City hereby agrees and Owner hereby acknowledges that the City
shall hold the Initial Deposit, and any subsequent deposits pursuant to (c) hereof.
(c) The Initial Deposit and any subsequent deposit required to be made
by the Owner pursuant to the terms hereof(collectively, the "Deposits"), are to be used to
pay for any costs incurred for any authorized purpose in connection with the formation of
the Community Facilities District and the issuance of the Bonds (other than costs, fees
and expenses to be paid out of the proceeds of the Bonds), including, without limitation,
(i) the fees and expenses of any consultants to the City employed in connection with the
formation of the Community Facilities District and the issuance of the Bonds, including
an engineer, special tax consultant, financial advisor, bond counsel and any other
consultant deemed necessary or advisable by the City, (ii) the costs of appraisals, market
absorption and feasibility studies and other reports deemed necessary or advisable by the
City in connection with the formation of the Community Facilities District and issuance
of the Bonds, (iii) the costs of publication of notices, preparation and mailing of ballots
avid other costs related to any hearing, election or other action or proceeding undertaken
in connection with the formation of the Community Facilities District and issuance of the
Bonds, (iv)reasonable charges for City staff time incurred in connection with the
formation of the Community Facilities District and the issuance of the Bonds by the
Community Facilities District, including a reasonable allocation of City overhead
expense related thereto, and (v) any and all other actual costs and expenses incurred by
the City in connection with the formation of the Comrnmiity Facilities District and the
issuance of the Bonds (collectively, the "Initial Costs"). The City may as provided in
subsection (f) hereof draw upon the Deposits from time to time to pay the Initial Costs.
(d) If, at any time, the unexpended and unencumbered balance of the
Deposits is less than $5,000, the City may request, in writing, that the Owner make an
additional deposit in an amount estimated by the City to be sufficient, together with any
such unexpended and unencumbered balance, to pay for all Initial Costs. The Owner
shall make such additional deposit with the City within two weeks of the receipt by the
Owner of the City's written request therefor. If the Owner fails to make any such
01003/0080/4016901 - .,
additional deposit within such two week period, the City may cease all work related to
the issuance of the Bonds.
(e) The Deposits shall be kept separately and may be invested in
lawful investments and the City shall at all times maintain records as to the expenditure
of the Deposits.
(f) The City shall draw upon the Deposits to pay the Initial Costs in
accordance with a statement in the fonn attached hereto as Exhibit A and by this
reference incorporated herein. The City shall pay such Initial Costs pursuant to such
statement as approved by the Director of Finance and Treasurer of the City.
(g) The City shall provide the Owner with a written monthly summary
of expenditures made from the Deposits, and the unexpended balance thereof, within ten
business days of receipt of the City of a written request therefor submitted by the Owner.
The cost of providing any such summary shall be charged to the Deposits.
Section 2. Return of Deposits; Reimbursement.
(a) As provided in Section 53314.9 of the Act, the approval by the
qualified electors of the Community Facilities District of the proposed special tax to be
levied therein is a condition to the repayment to the Owner of the funds advanced by the
Owner pursuant hereto. Therefore, if the qualified electors of the Community Facilities
District do not approve the proposed special tax to be levied thereon, the City shall have
no obligation to repay the Owner any portion of the Deposits expended or encumbered to
pay Initial Costs. In accordance with Section 53314.9 of the Act, if the qualified electors
of the Community Facilities District do not approve the proposed special tax to be levied
therein, the City shall return to the Owner any portion of the Deposits which have not
been expended or encumbered to pay Initial Costs by the time of the election oil said
proposed special tax.
(b) If proceedings for the issuance of the Bonds are terminated, the
City shall, within ten business days after official action by the City or the Community
Facilities District to terminate said proceedings, the City shall return the then unexpended
and unencumbered portion of the Deposits to the Owner, including interest.
(c) If the Bonds are issued by the Community Facilities District, the
City shall reimburse the Owner, without interest, for the portion of the Deposits that has
been expended or encumbered, said reimbursement to be made within ten business days
after the issuance of such Bonds, solely from the proceeds of such Bonds and only to the
extent otherwise permitted under the Act. The City shall, within twenty (20) business
days after the issuance of such Bonds, return the then unexpended and unencumbered
portion of the Deposits to the Owner, including interest.
Section 3. Abandonment of Proceedings. The Owner acknowledges and agrees
that the issuance of the Bonds shall be in the sole discretion of the Community Facilities
3
01003/0080/40169.01
District. No provision of this Deposit Agreement shall be construed as an agreement,
promise or warranty of the City to issue the Bonds.
Section 4. Deposit Agreement Not Debt or Liability of City. As provided in
Section 53314.9(b) of the Act, this Deposit Agreement does not constitute a debt or
liability of the City, but shall constitute a debt and liability of the Community Facilities
District upon its formation. The City shall not be obligated to advance any of its own
funds to pay Initial Costs or any other costs incurred in connection with the issuance of
the Bonds. No member of the City Council of the City and no officer, employee or agent
of the City shall to any extent be personally liable hereunder.
Section 5. Notices. Any notices, requests, demands, documents, approvals or
disapprovals given or sent under this Deposit Agreement from one Party to another
(collectively, "Notices") may be personally delivered, transmitted by facsimile (FAX)
transmission, or deposit with the United States Postal Service for mailing, postage
prepaid, to the address of the other Party as stated in this Section. Notices shall be sent as
follows:
If to City: City of Palm Springs
Attn: City Manager
3200 Tahquitz Caynon Way
Palm Springs, California 92262
Telephone: (760) 323-8229
Fax No. (760) 323-8267
With copies to: Aleshire &Wynder, LLP
Attn: Urban J. Schreiner, Bond Counsel
18881 Von Kaiman Avenue, Ste. 400
Irvine, California 92612
Telephone: (949) 223-1170
Fax No. (949) 223-1ISO
If to Owner: Palm Springs Classic, LLC
c/o Lennar Homes of California, Inc.
Attn: Suzanne Johns
391 N. Main Street, Suite 301
Corona, CA 92880
Telephone: (951) 817-3649
Fax: (951) 817-3679
Each such notice, statement, demand, consent, approval, authorization, offer,
designation, request or other communication hereunder shall be deemed delivered to the
party to whom it is addressed (a) if personally served or delivered, upon delivery, (b) if
given by electronic communication, whether by telex, telegram or telecopier upon the
sender's receipt of an appropriate answerback or other written acknowledgement, (c)if
given by registered or certified mail, return receipt requested, deposited with the United
4
01003/0080/40169.01 - -
States mail postage prepaid, 72 hours after such notice is deposited with the United States
mail, (d) if given by overnight courier, with courier charges prepaid, 24 hours after
delivery to said overnight courier, or (e)if given by any other means, upon delivery at the
address specified in this Section.
Section 6. California Law. This Deposit Agreement shall be governed and
construed in accordance with the laws of the State of California. The Parties shall be
entitled to seek any remedy available at law and in equity. All legal actions must be
instituted in the Superior Corot of the County of Riverside, State of California, in an
appropriate mimicipal court in Riverside County, or in the United States District Court
for the Central District of California.
Section 7 Successors and Assigns. This Deposit Agreement shall be binding
upon and insure to the benefit of the successors and assigns of the parties hereto.
Section 8 Counterparts. This Deposit Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which shall constitute
but one and the same instrument.
Section 9. Other Aereements. The obligations of the Owner hereunder shall be
that of a party hereto. Nothing herein shall be construed as affecting the City's or
Owner's rights, or duties to perform their respective obligations, under other agreements,
use regulations or subdivision requirements relating to the development. This Deposit
Agreement shall not confer any additional rights, or waive any rights given, by either
party hereto under any development or other agreement to which they are a party.
Section 10. Titles and Captions. Titles and captions are for convenience of
reference only and do not define, describe or limit the scope or the intent of this Deposit
Agreement or of any of its terms. References to section numbers are to sections in this
Deposit Agreement, unless expressly stated otherwise.
Section 11. Interpretation. As used in this Deposit Agreement, masculine,
feminine or neuter gender and the singular or plural number shall each be deemed to
include the others where and when the context so dictates. The word"including" shall be
construed as if followed by the words "without limitation." This Deposit Agreement
shall be interpreted as though prepared jointly by both Parties.
Section 12. No Waiver. A waiver by either Party of a breach of any of the
covenants, conditions or agreements under this Deposit Agreement to be performed by
the other Party shall not be construed as a waiver of any succeeding breach of the same or
other covenants, agreements, restrictions or conditions of this Deposit Agreement.
Section 13. Modifications. Any alteration, change or modification of or to this
Deposit Agreement, in order to become effective, shall be made in writing and in each
instance signed on behalf of each Party.
Section 14. Severability. If any term, provision, condition or covenant of this
Deposit Agreement or its application to any party or circumstances shall be held, to any
5
010031009014016901 e kG�r-ry
extent, invalid or unenforceable, the remainder of this Deposit Agreement, or the
application of the term, provision, condition or covenant to persons or circumstances
other than those as to whom or which it is held invalid or unenforceable, shall not be
affected, and shall be valid and enforceable to the fullest extent permitted by law.
Section 15. Computation of Time. The time in which any act is to be done
under this Deposit Agreement is computed by excluding the first day (such as the day
escrow opens), and including the last day, unless the last day is a holiday or Saturday or
Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays
as specified in Section 6700 and 6701 of the California Government Code. If any act is
to be done by a particular time during a day,that time shall be Pacific Time Zone time.
Section 16. Legal Advice. Each Party represents and warrants to the other the
following: they have carefully read this Deposit Agreement, and in signing this Deposit
Agreement, they do so with full knowledge of any right which they may have; they have
received independent legal advice from their respective legal counsel as to the matters set
forth in this Deposit Agreement, or have knowingly chosen not to consult legal counsel
as to the matters set forth in this Deposit Agreement; and, they have freely signed this
Deposit Agreement without any reliance upon any agreement, promise, statement or
representation by or on behalf of the other Party, or their respective agents, employees, or
attorneys, except as specifically set forth in this Deposit Agreement, and without duress
or coercion, whether economic or otherwise.
Section 17 Cooperation. Each Party agrees to cooperate with the other in this
transaction and, in that regard, to sign any and all documents which may be reasonably
necessary, helpful, or appropriate to carry out the purposes and intent of this Deposit
Agreement including, but not limited to, releases or additional agreements.
Section 18. Conflicts of Interest. No member, official or employee of City shall
have any personal interest, direct or indirect, in this Deposit Agreement, nor shall any
such member, official or employee participate in any decision relating to the Deposit
Agreement which affects his personal interests or the interests of any corporation,
partnership or association in which he is directly or indirectly interested.
[Signatures on following page]
6
01003/0080/40169.01
CALIFIDRNIA ALL-PURPOSE ACKNOWLEDGMENT
` State of California
County of ss.
Or>t1T� � . `r�l�/ �before me,
(
personally appeared
Name and eta of Oflmer( g, Jana Doe, ear,Publm")
� � �K�
Names)of Slgnegs) '
rsonally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the person(e} whose name(-} isil
subscribed to the within instrument and
acknowledged to me that helstaeftHey executed
WENDYD.PiEMAB the same in hisA+&FA1aeir authorized
CommMslon#1&U698 capacity fiea}, and that by hi.te r
Nctaty Pubic-Cauml signature{e)-on the instrument the persou4i�,or
ftViC=* the entity uponted behalf o ich the ersortiEsi
*C4WWb ftDteTS, acted, execu the in rument.
ITNES y hand d fficiaj,e I.
Smna re of Not Publm
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document
Description of Attached Document
1
Title or Type of Document:
Document Date: Number of Pages:
Signer(s)Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑General
❑ Attorney-in-Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
O 1999 National Notary Assocmhon•9350 Do solo Ave.,P.O Box 2402-Chalmonh,CA 91316-2402-www.nabonalnolaryorg Pmtl No.590] Reorder Call Toll-Free 1-900-876-6827
IN WITNESS WHEREOF, the Parties have executed this Deposit Agreement as
of the respective dates set forth below.
"CITY"
CITY OF PALM SPRINGS, a
municipal corporation
Dated: By:
ATTEST: David Ready, City Manager
By:
James Thompson, City Clerk
APPROVED AS TO FORM:
ALESHIRE &c WYNDER, LLP
Bond Counsel
By:
URBAN J. SCHREINER
"OWNER"
PALM SPRINGS CLASSIC, LLC,
A Delaware limited liability company
By: Lennar Homes of California, Inc.,
A California corporation,
Its Mangy__
By:
Name: %r-rrm BPAJK5
Title: Vj o IDRES/D cA3T
Dated: July 11, 2005
7
01003/0080/40169.01
EXHIBIT A
Community Facilities District No. 2005-1
(Escena) of The City of Palm Springs
WRITTEN STATEMENT NO. _FOR
DISBURSEMENTS PURSUANT TO THE
DEPOSIT AND REIMBURSEMENT AGREEMENT
The undersigned hereby states and certifies:
(i) that he is the duly authorized Director of Finance and Treasurer of the City
of Palm Springs ("City"), and as such, is familiar with the facts herein certified and is
authorized and qualified to execute and deliver this certificate;
(ii) that he is authorized pursuant to the Deposit and Reimbursement
Agreement, dated as of July 11, 2005 (the "Agreement), by and between the City of
Palm Springs and Palm Springs Classic, LLC, relating to the formation of Community
Facilities District No. 2005-1 (Escena) of the City of Palm Springs (the "CFD") to
execute this statement;
(iii) that pursuant to Section 1 (e) of the Agreement, the City is hereby directed
to disburse this date to the person or entity, designated on Exhibit 1 attached hereto and
by this reference incorporated herein, the respective sums set forth opposite each such
person or entity, in payment of certain expenses related to the CFD;
(iv) that each obligation shown on Exhibit 1 has been properly incurred and is
a proper charge against the Deposits;
(v) That no item to be paid pursuant to this Written Statement has been
previously paid or reimbursed fiom the Deposits; and
(vi) that capitalized terms used herein and not otherwise defined shall have the
meanings ascribed thereto in the Agreement.
1
O 1 0 0 3/0 0 80/4 01 6 9.01
GD :
Dated: 2005 CITY OF PALM SPRINGS
Craig A. Graves, Director of Finance and
Treasurer
[Written Statement No._For Disbursements
Pursuant To The Deposit And Reimbursement Agreement]
2
N
01003/0080/40169.01
EXHIBIT 1
Payee Purpose Amount
1
01003/0080/40169.01
TO: CITY COUNCIL OF THE CITY OF PALM SPRINGS
FROM: PALM SPRINGS CLASSIC, LLC
PETITION(INCLUDING CONSENT AND WAIVER)
REQUESTING THE ESTABLISHMENT OF A
COMMUNITY FACILITIES DISTRICT
The undersigned landowner (the "Landowner") does hereby certify that the following
statements are all true and correct:
1. The Landowner has the authority to petition the City Council (the "Council") of
the City of Palm Springs (the "City") and to give the consent and waiver contained herein with
respect to a Community Facilities District to be established over the properties included within
this petition (the "CFD") to be formed under the provisions of the Mello-Roos Community
Facilities Act of 1982 (the "Act"), being Chapter 2.5 of Part 1 of Division 2 of title 5
(commencing with Section 53311) of the California Government Code.
2. The Landowner hereby certifies that as of the date indicated opposite the
Landowner's signature, the Landowner listed herein is the owner of the property within the
proposed bolndary of the CFD described in Exhibit "A"hereto (the "Property").
3. The Landowner, pursuant to Section 53318 of the Act, hereby requests that
proceedings be commenced (i) to establish the CFD for the purpose of financing subdivision
public improvements in connection with a master planned community project known as
"Escena," (ii) to authorize the issuance of bonds for the CFD and (iii) to establish an
appropriations limit for the CFD.
4. In accordance with the provisions of the Act, and specifically Sections 53326(a)
and 53327(b)- thereof allowing certain time and conduct requirements relative to a special
landowner election to be waived with the unanimous consent of all the landowners to be
included in a community facilities district and concurrence of the election official conducting the
election, the Landowner (i) expressly consents to the conduct of the special election at the
earliest possible time following the adoption by the Council of a Resolution of Formation
Establishing the CFD and (ii) expressly waives any requirement to have the special election
conducted within the time periods specified in Section 53326 of the Act or in the California
Elections Code.
5. The Landowner waives any requirement for the mailing of the ballot for the
special election and expressly agrees that said election may be conducted by mailed or hand-
delivered ballot to be returned as quickly as possible to the designated election official, being the
office of the City Clerk and the Landowner requests that the results of said election be canvassed
01003/0080/40421.02
and reported to the Council at the same meeting of the Council as the public hearing on the
formation of the CFD or the next available meeting.
6. The Landowner expressly waives all applicable waiting periods for the election
and waives the requirement for analysis and arguments relating to the special election, as set
forth in Section 53327 of the Act, and consents to not having such materials provided to the
Landowner in the ballot packet, and expressly waives any requirements as to the form of the
ballot.
7. The Landowner expressly waives all notice requirements relating to hearings and
special elections, whether by posting, publishing or mailing, and whether such requirements are
found in the California Elections Code, the Californa Government Code or other laws or
procedures, including but limited to any notice provided for by compliance with the provisions
of Section 4101 of the California Elections Code.
IN WITNESS WHEREOF, the Landowner has executed this Petition (including Consent
and Waiver) this 1 lth day of July, 2005.
PALM SPRINGS CLASSIC, LLC,
a Delaware limited liability company
By: LENNAR HOMES OF CALIFORNIA, INC.,
a California corporation,
its Ddangger
By:
Name: /Cm 13gn1K5
Title: VtOE P1ee61Oct1T
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF PALM SPRINGS
THIS 15Td DAY OF s0j ,-( 2005.
ty Clerk
2
01003/0080/40421.02
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
f
State of California
County of tj�Q ss.
On IiA,_ before me
— l Data , �1 Nam add The of OXaer pt g,"Jane Doe&ry Publ¢")
personally appeared
personally known to me
' ❑ proved to me on the basis of satisfactory
evidence
to be the personl whose nairl islal
subscribed to the within instrument and
acknowledged to me that he/s4l executed
WENDYD.PETRM the same in hig',..;.o�".r.;;eir authorized
Cct111MIl on#IW8696 capacity4ee}- and that by his'He
Will Fit -c _ signatur&(l+on the instrument the persoa(s}, or
t.�`�z the entity upon behalf of which the persoa4.
acted, executed the instrument.
WITNESS my hand and offi 'al s I
Slgm reofN am, ble
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date: Number of Pages:
Signer(s)Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
❑ Individual Tap of thumb here
❑ Corporate Officer—Tftle(s):
❑ Partner — ❑ Limited ❑General
❑ Attorney-in-Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
01999 National Notary Association-9350 Do Solo Ave,P.D.Box 2402-Chatsworth,CA 01313-2402•www.na9onalnotaryorg Prod.No 5907 Reorder Call Toll-Free 1-are ate 6827
E Via
EXHIBIT A
THE LAND REFERRED TO IN THIS PETITION (INCLUDING CONSENT AND
WAIVER) IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF
RIVERSIDE AND IS DESCRIBED AS THE LAND INCLUDED IN TENTATIVE
TRACT MAP NO. 32233 (EXCLUDING THE GOLF COURSE AND HOTEL SITES).
3
01003/0080/40421 02
. ALESHIRE & 18881 Von Karman Ave.
WYNDER, LLP Suite 400
ATTORNEYS AT LAW Irvine,CA 92612Phone949.223.1170
www.awatiorneys.com Fax 949.223.1180
July 12, 2005
SUNDER'S E-MAIL:
USCHREINER@AwATTORNEYS.COM
VIA OVERNIGI3T EXPRESS
James Thompson
City Clerk
3200 E. Tahquitz Canyon Way D,
Palm Springs, CA 92262 j
Re: Escena { -;
E—o
i,,.,. ;
Dear Mr. Thompson:
C
Enclosed please the following with respect with the above project:
1. Petition, Consent and Waiver to be placed on file in your office;
2. Deposit and Reimbursement Agreement to be approved by the City Council at the
July 20th Meeting a form of resolution approving this document has been
provided;
3. Check for $76,500.00 to be placed in on account for the project
I'm faxing you this material today with the original being sent overnight so they will
arrive in your office tomorrow. Please call if you have any questions.
Sincerely yours,
ALESHIRE & WYNDER, LLP
-&a ti-
Urban J. Schreiner
UJS:ct
cc: Doug Holland Esq.- City Attorney " 1l.`1 '":
Craig Graves - Director of Finance
Suzanne Q. Harrell—Financial Advisor
Robert M. Haight, Esq. —Developer Counsel V
01003/0080/0 0
DEPOSIT AND REIMBURSEMENT AGREEMENT
THIS DEPOSIT AND REIMBURSEMENT AGREEMENT (this "Deposit
Agreement"), dated as of July 11, 2005 for identification purposes only, is by and
between the City of Palm Springs, California (the "City") and Palm Springs Classic,
LLC, a Delaware limited liability company(the "Owner").
RECITALS
WHEREAS, the City has determined to initiate proceedings to create a
community facilities district designated "Community Facilities District No. 2005-1
(Eseena) of the City of Pahn Springs" (the "Community Facilities District") under the
Mello-Roos Community Facilities Act of 1982 (the "Act"); and
WHEREAS, Owner is the owner of the real property within the proposed
Community Facilities District; and
WHEREAS, in accordance with City's policy regarding use of the Act,
the Owner is required to compensate the City for all costs incurred in the formation of the
Community Facilities District and issuance of bonds for the Community Facilities
District; and
WHEREAS, Section 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 fiords from any source, including, but not limited to, private persons
or private entities and may provide, by resolution, for the use of those funds for any
authorized purpose, including, but not limited to, paying any cost incurred by the local
agency in creating a conummity facilities district (including the issuance of bonds
thereby); and
WHEREAS, Section 53314.9 of the Act further provides that the
legislative body may enter into an agreement, by resolution, with the person or entity
advancing the funds, to repay all or a portion of the fluids advanced, as determined by the
legislative body, with or without interest under all of the following conditions: (a) the
proposal to 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 the community facilities district pursuant to
Section 53325.1 of the Act (including the issuance of bonds thereby), (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 any funds which have not been cornrnitted for any authorized purpose by the
time of the election to the person or entity advancing the fiords; and
01003/0080/40169 01 1
WHEREAS, the City and the Owner desire to enter into this Deposit
Agreement in accordance with Section 53314.9 of the Act in order to provide for the
advancement of fiords by the Owner to be used to pay costs incurred in connection with
the formation of the Community Facilities District and issuance of special tax bonds for
the Community Facilities District (the `Bonds"), and to provide for the reimbursement to
the Owner of such fiends advanced, without interest, from the proceeds of any Bonds:
NOW, THEREFORE, for and in consideration of the mutual promises
and covenants herein contained, the parties hereto agree as follows:
Section 1. The Deposits and Application Thereof.
(a) The Owner has deposited herewith the amount of $76,500 (the
"Initial Deposit"). The City, by its execution hereof, acknowledges receipt of, and
accepts, the Initial Deposit.
(b) City hereby agrees and Owner hereby acknowledges that the City
shall hold the Initial Deposit, and any subsequent deposits pursuant to (c) hereof.
(c) The Initial Deposit and any subsequent deposit required to be made
by the Owner pursuant to the terms hereof(collectively, the "Deposits"), are to be used to
pay for any costs incurred for any authorized purpose in connection with the formation of
the Community Facilities District and the issuance of the Bonds (other than costs, fees
and expenses to be paid out of the proceeds of the Bonds), including, without limitation,
(i)the fees and expenses of any consultants to the City employed in connection with the
formation of the Community Facilities District and the issuance of the Bonds, including
an engineer, special tax consultant, financial advisor, bond counsel and any other
consultant deemed necessary or advisable by the City, (ii) the costs of appraisals, market
absorption and feasibility studies and other reports deemed necessary or advisable by the
City in connection with the formation of the Community Facilities District and issuance
of the Bonds, (iii) the costs of publication of notices, preparation and mailing of ballots
and other costs related to any hearing, election or other action or proceeding undertaken
in connection with the formation of the Community Facilities District and issuance of the
Bonds, (iv) reasonable charges for City staff time incurred in connection with the
formation of the Community Facilities District and the issuance of the Bonds by the
Community Facilities District, including a reasonable allocation of City overhead
expense related thereto, and (v) any and all other actual costs and expenses incurred by
the City in connection with the formation of the Community Facilities District and the
issuance of the Bonds (collectively, the "Initial Costs"). The City may as provided in
subsection (f) hereof draw upon the Deposits from time to time to pay the Initial Costs.
(d) If, at any time, the unexpended and unencumbered balance of the
Deposits is less than $5,000, the City may request, in writing, that the Owner make an
additional deposit in an amount estimated by the City to be sufficient, together with any
such unexpended and unencumbered balance, to pay for all Initial Costs. The Owner
shall make such additional deposit with the City within two weeks of the receipt by the
Owner of the City's written request therefor. If the Owner fails to make any such
2
01003/0080/40t69.01
additional deposit within such two week period, the City may cease all work related to
the issuance of the Bonds.
(e) The Deposits shall be kept separately and may be invested in
lawful investments and the City shall at all times maintain records as to the expenditure
of the Deposits.
(f) The City shall draw upon the Deposits to pay the Initial Costs in
accordance with a statement in the form attached hereto as Exhibit A and by this
reference incorporated herein. The City shall pay such Initial Costs pursuant to such
statement as approved by the Director of Finance and Treasurer of the City.
(g) The City shall provide the Owner with a written monthly summary
of expenditures made from the Deposits, and the unexpended balance thereof, within ten
business days of receipt of the City of a written request therefor submitted by the Owner.
The cost of providing any such summary shall be charged to the Deposits.
Section 2. Return of Deposits; Reimbursement.
(a) As provided in Section 53314.9 of the Act, the approval by the
qualified electors of the Community Facilities District of the proposed special tax to be
levied therein is a condition to the repayment to the Owner of the funds advanced by the
Owner pursuant hereto. Therefore, if the qualified electors of the Community Facilities
District do not approve the proposed special tax to be levied thereon, the City shall have
no obligation to repay the Owner any portion of the Deposits expended or encumbered to
pay Initial Costs. In accordance with Section 53314.9 of the Act, if the qualified electors
of the Community Facilities District do not approve the proposed special tax to be levied
therein, the City shall return to the Owner any portion of the Deposits which have not
been expended or encumbered to pay Initial Costs by the time of the election on said
proposed special tax.
(b) If proceedings for the issuance of the Bonds are terminated, the
City shall, within ten business days after official action by the City or the Community
Facilities District to terminate said proceedings, the City shall return the then unexpended
and unencumbered portion of the Deposits to the Owner, including interest.
(c) If the Bonds are issued by the Community Facilities District, the
City shall reimburse the Owner, without interest, for the portion of the Deposits that has
been expended or encumbered, said reimbursement to be made within ten business days
after the issuance of such Bonds, solely from the proceeds of such Bonds and only to the
extent otherwise permitted under the Act. The City shall, within twenty (20) business
days after the issuance of such Bonds, return the then unexpended and unencumbered
portion of the Deposits to the Owner, including interest.
Section 3. Abandonment of Proceedings. The Owner acknowledges and agrees
that the issuance of the Bonds shall be in the sole discretion of the Community Facilities
3
01003/0080/40169.01
District. No provision of this Deposit Agreement shall be construed as an agreement,
promise or warranty of the City to issue the Bonds.
Section 4. Deposit Agreement Not Debt or Liability of City. As provided in
Section 53314.9(b) of the Act, this Deposit Agreement does not constitute a debt or
liability of the City, but shall constitute a debt and liability of the Community Facilities
District upon its forniation. The City shall not be obligated to advance any of its own
funds to pay Initial Costs or any other costs incurred in connection with the issuance of
the Bonds. No member of the City Council of the City and no officer, employee or agent
of the City shall to any extent be personally liable hereunder.
Section 5. Notices. Any notices, requests, demands, documents, approvals or
disapprovals given or sent under this Deposit Agreement from one Party to another
(collectively, "Notices") may be personally delivered, transmitted by facsimile (FAX)
transmission, or deposit with the United States Postal Service for mailing, postage
prepaid, to the address of the other Party as stated in this Section. Notices shall be sent as
follows:
If to City: City of Palm Springs
Attn: City Manager
3200 Taliquitz Caynon Way
Palm Springs, California 92262
Telephone: (760) 323-8229
Fax No. (760) 323-8267
With copies to: Aleshire & Wynder, LLP
Attn: Urban J. Schreiner, Bond Counsel
18881 Von Kai-man Avenue, Ste. 400
Irvine, California 92612
Telephone: (949) 223-1170
Fax No. (949) 223-1180
If to Owner: Palm Springs Classic, LLC
c/o Lennar Homes of California, Inc.
Attn: Suzamie Johns
391 N. Main Street, Suite 301
Corona, CA 92880
Telephone: (951) 817-3649
Fax: (951) 817-3679
Each such notice, statement, demand, consent, approval, authorization, offer,
designation, request or other communication hereunder shall be deemed delivered to the
party to whom it is addressed (a) if personally served or delivered, upon delivery, (b) if
given by electronic communication, whether by telex, telegram or telecopier upon the
sender's receipt of an appropriate answerback or other written acknowledgement, (c) if
given by registered or certified mail, return receipt requested, deposited with the United
4
01003/0080/40169.01
States mail postage prepaid, 72 hours after such notice is deposited with the United States
mail, (d) if given by overnight courier, with courier charges prepaid, 24 hours after
delivery to said overnight courier, or (e) if given by any other means, upon delivery at the
address specified in this Section.
Section 6. California Law. This Deposit Agreement shall be governed and
construed in accordance with the laws of the State of California. The Parties shall be
entitled to seek any remedy available at law and in equity. All legal actions must be
instituted in the Superior Court of the County of Riverside, State of California, in an
appropriate municipal court in Riverside County, or in the United States District Court
for the Central District of California.
Section 7 Successors and Assigns. This Deposit Agreement shall be binding
upon and insure to the benefit of the successors and assigns of the parties hereto.
Section 8 Counterparts. This Deposit Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which shall constitute
but one and the same instrument.
Section 9. Other Agreements. The obligations of the Owner hereunder shall be
that of a party hereto. Nothing herein shall be construed as affecting the City's or
Owner's rights, or duties to perform their respective obligations, under other agreements,
use regulations or subdivision requirements relating to the development. This Deposit
Agreement shall not confer any additional rights, or waive any rights given, by either
party hereto under any development or other agreement to which they are a party.
Section 10. Titles and Captions. Titles and captions are for convenience of
reference only and do not define, describe or limit the scope or the intent of this Deposit
Agreement or of any of its terms. References to section numbers are to sections in this
Deposit Agreement, unless expressly stated otherwise.
Section 11. Interpretation. As used in this Deposit Agreement, masculine,
feminine or neuter gender and the singular or plural number shall each be deemed to
include the others where and when the context so dictates. The word "including" shall be
construed as if followed by the words "without limitation." This Deposit Agreement
shall be interpreted as though prepared jointly by both Parties.
Section 12. No Waiver. A waiver by either Party of a breach of any of the
covenants, conditions or agreements under this Deposit Agreement to be perfonned by
the other Party shall not be construed as a waiver of any succeeding breach of the same or
other covenants, agreements, restrictions or conditions of this Deposit Agreement.
Section 13. Modifications. Any alteration, change or modification of or to this
Deposit Agreement, in order to become effective, shall be made in writing and in each
instance signed on behalf of each Party.
Section 14. Severability. If any tern, provision, condition or covenant of this
Deposit Agreement or its application to any party or circumstances shall be held, to any
5
01003/0080/40169.01
extent, invalid or unenforceable, the remainder of this Deposit Agreement, or the
application of the teen, provision, condition or covenant to persons or circumstances
other than those as to whom or which it is held invalid or unenforceable, shall not be
affected, and shall be valid and enforceable to the fiAlest extent permitted by law.
Section 15. Computation of Time. The time in which any act is to be done
under this Deposit Agreement is computed by excluding the first day (such as the day
escrow opens), and including the last day, unless the last day is a holiday or Saturday or
Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays
as specified in Section 6700 and 6701 of the California Government Code. If any act is
to be done by a particular time during a day, that time shall be Pacific Time Zone time.
Section 16. Legal Advice. Each Party represents and warrants to the other the
following: they have carefully read this Deposit Agreement, and in signing this Deposit
Agreement, they do so with full knowledge of any right which they may have; they have
received independent legal advice from their respective legal counsel as to the matters set
forth in this Deposit Agreement, or have knowingly chosen not to consult legal counsel
as to the matters set forth in this Deposit Agreement; and, they have freely signed this
Deposit Agreement without any reliance upon any agreement, promise, statement or
representation by or on behalf of the other Party, or their respective agents, employees, or
attorneys, except as specifically set forth in this Deposit Agreement, and without duress
or coercion,whether economic or otherwise.
Section 17 Cooperation. Each Party agrees to cooperate with the other in this
transaction and, in that regard, to sign any and all documents which may be reasonably
necessary, helpful, or appropriate to carry out the purposes and intent of this Deposit
Agreement including,but not limited to, releases or additional agreements.
Section 18. Conflicts of Interest. No member, official or employee of City shall
have any personal interest, direct or indirect, in this Deposit Agreement, nor shall any
such member, official or employee participate in any decision relating to the Deposit
Agreement which affects his personal interests or the interests of any corporation,
partnership or association in which he is directly or indirectly interested.
[Signatures on following page]
6
01003/0080/40169.01
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
if
State of California
ss.
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before
I Data Name anal of Officer(c g, Jane Doe,Notai Puldirs'
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subscribed to the within instrument and
acknowledged to me that hstirshe"executed al
(ii D.PETRAS
the same in hist1heirAhe4ir authorized
COMMISSIon#1538698 capacftyries�, and that by hislinednthi A
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Slgnelire of Nof. Publio
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lu Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
e,ii it
Title or Type of Document:
Document Date, l�it
Number of Pages:
Signer(s)Other Than Named Above:
it
Capacity(ies) Claimed by Signer
it Signer's Name:
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17
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IN WITNESS WHEREOF, the Parties have executed this Deposit Agreement as
of the respective dates set forth below.
"CITY"
CITY OF PALM SPRINGS, a
municipal corporation
Dated: By:
David Ready, City Manager
ATTEST:
By:
James Thompson, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Bond Counsel
By:
URBAN J. SCHREINER
"OWNER"
PALM SPRINGS CLASSIC, LLC,
A Delaware limited liability company
By: Lennar Homes of California,Inc.,
A California corporation,
Its M agrjr
By. ±A,2�,>
Name: %n-m Zi9A1K5
Title: VCE AeE6i6c107—
Dated: July 11, 2005
7
01003/0090/40169 01
EXHIBIT A
Community Facilities District No. 2005-1
(Escena) of The City of Palm Springs
WRITTEN STATEMENT NO. FOR
DISBURSEMENTS PURSUANT TO THE
DEPOSIT AND REIMBURSEMENT AGREEMENT
The undersigned hereby states and certifies:
(i) that he is the duly authorized Director of Finance and Treasurer of the City
of Palm Springs ("City"), and as such, is familiar with the facts herein certified and is
authorized and qualified to execute and deliver this certificate;
(ii) that he is authorized pursuant to the Deposit and Reimbursement
Agreement, dated as of July 11, 2005 (the "Agreement"), by and between the City of
Palm Springs and Palm Springs Classic, LLC, relating to the formation of Community
Facilities District No. 2005-1 (Escena) of the City of Palm Springs (the "CFD") to
execute this statement;
(iii) that pursuant to Section 1 (e) of the Agreement, the City is hereby directed
to disburse this date to the person or entity, designated on Exhibit 1 attached hereto and
by this reference incorporated herein, the respective sums set forth opposite each such
person or entity, in payment of certain expenses related to the CFD;
(iv) that each obligation shown on Exhibit 1 has been properly incurred and is
a proper charge against the Deposits;
(v) That no item to be paid pursuant to this Written Statement has been
previously paid or reimbursed from the Deposits; and
(vi) that capitalized terms used herein and not otherwise defined shall have the
meanings ascribed thereto in the Agreement.
1
0100310090/40169 01
Dated: 12005 CITY OF PALM SPRINGS
Craig A. Graves, Director of Finance and
Treasurer
[Written Statement No._For Disbursements
Pursuant To The Deposit And Reimbursement Agreement]
2
01003/0090/40169 01
EXHIBIT 1
Payee Purpose Amount
1
0 1 003/00801401 69 01
TO: CITY COUNCIL OF THE CITY OF PALM SPRINGS
FROM: PALM SPRINGS CLASSIC, LLC
PETITION (INCLUDING CONSENT AND WAIVER)
REQUESTING THE ESTABLISHMENT OF A
COMMUNITY FACILITIES DISTRICT
The undersigned landowner (the "Landowner") does hereby certify that the following
statements are all true and correct:
1. The Landowner has the authority to petition the City Council (the "Council") of
the City of Palm Springs (the "City") and to give the consent and waiver contained herein with
respect to a Community Facilities District to be established over the properties included within
this petition (the "CFD") to be formed under the provisions of the Mello-Roos Community
Facilities Act of 1982 (the "Act"), being Chapter 2.5 of Part 1 of Division 2 of title 5
(commencing with Section 53311) of the California Government Code.
2. The Landowner hereby certifies that as of the date indicated opposite the
Landowner's signature, the Landowner listed herein is the owner of the property within the
proposed boundary of the CFD described in Exhibit "A"hereto (the "Property").
3. The Landowner, pursuant to Section 53318 of the Act, hereby requests that
proceedings be commenced (i) to establish the CFD for the purpose of financing subdivision
public improvements in cormection with a master planned community project known as
"Escena," (ii) to authorize the issuance of bonds for the CFD and (iii) to establish an
appropriations limit for the CFD.
4. In accordance with the provisions of the Act, and specifically Sections 53326(a)
and 53327(b) thereof allowing certain time and conduct requirements relative to a special
landowner election to be waived with the unanimous consent of all the landowners to be
included in a community facilities district and concurrence of the election official conducting the
election, the Landowner (i) expressly consents to the conduct of the special election at the
earliest possible time following the adoption by the Council of a Resolution of Formation
Establishing the CFD and (ii) expressly waives any requirement to have the special election
conducted within the time periods specified in Section 53326 of the Act or in the California
Elections Code.
5. The Landowner waives any requirement for the mailing of the ballot for the
special election and expressly agrees that said election may be conducted by mailed or hand-
delivered ballot to be returned as quickly as possible to the designated election official, being the
office of the City Clerk and the Landowner requests that the results of said election be canvassed
01003/0080/40421.02
and reported to the Council at the same meeting of the Council as the public hearing on the
formation of the CFD or the next available meeting.
6. The Landowner expressly waives all applicable waiting periods for the election
and waives the requirement for analysis and arguments relating to the special election, as set
forth in Section 53327 of the Act, and consents to not having such materials provided to the
Landowner in the ballot packet, and expressly waives any requirements as to the form of the
ballot.
7. The Landowner expressly waives all notice requirements relating to hearings and
special elections, whether by posting, publishing or mailing, and whether such requirements are
found in the California Elections Code, the California Government Code or other laws or
procedures, including but limited to any notice provided for by compliance with the provisions
of Section 4101 of the California Elections Code.
IN WITNESS WHEREOF, the Landowner has executed this Petition (including Consent
and Waiver) this I Ith day of July, 2005.
PALM SPRINGS CLASSIC, LLC,
a Delaware limited liability company
By: LENNAR HOMES OF CALIFORNIA, INC.,
a California corporation,
its Mnjiag r
By: A
Naive: l Cn,? 840<5
Title: U�ict P/CE510Ex7'7-
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF PALM SPRINGS
THIS I ST" DAY OF -:T0J--`1( 2005.
L �Ity
Clerk
2
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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Description of Attached Document
Title or Type of Document:
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Document Date: Number of Pages:
Signer(s) Other Than Named Above: bl
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81999 National Norco,,Meocionce-9350 Do Solo Ave PO BOX 2402 Chatsworth CA 91313 2402•Www nalionarnotar,or, Proof A.5907 Roordeo Call To Frac 1-800.876 6827
EXHIBIT A
THE LAND REFERRED TO IN THIS PETITION (INCLUDING CONSENT AND
WAIVER) IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF
RIVERSIDE AND IS DESCRIBED AS THE LAND INCLUDED IN TENTATIVE
TRACT MAP NO. 32233 (EXCLUDING THE GOLF COURSE AND HOTEL SITES).
3
01003/0080/40421.02
DEPOSIT AND REIMBURSEMENT AGREEMENT
THIS DEPOSIT AND REIMBURSEMENT AGREEMENT (this "Deposit
Agreement"), dated as of July 11, 2005 for identification purposes only, is by and
between the City of Palm Springs, California (the "City") and Palm Springs Classic,
LLC, a Delaware limited liability company(the "Owner").
RECITALS
WHEREAS, the City has determined to initiate proceedings to create a
community facilities district designated "Community Facilities District No. 2005-1
(Escena) of the City of Palm Springs" (the "Community Facilities District") under the
Mello-Roos Community Facilities Act of 1982 (the "Act"); and
WHEREAS, Owner is the owner of the real property within the proposed
Community Facilities District; and
WHEREAS, in accordance with City's policy regarding use of the Act,
the Owner is required to compensate the City for all costs incurred in the formation of the
Community Facilities District and issuance of bonds for the Community Facilities
District; and
WHEREAS, Section 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 fiords from any source, including, but not limited to, private persons
or private entities and may provide, by resolution, for the use of those funds for any
authorized purpose, including, but not limited to, paying any cost incurred by the local
agency in creating a community facilities district (including the issuance of bonds
thereby); and
WHEREAS, Section 53314.9 of the Act further provides that the
legislative body may enter into an agreement, by resolution, with the person or entity
advancing the funds, to repay all or a portion of the funds advanced, as determined by the
legislative body, with or without interest under all of the following conditions: (a) the
proposal to 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 the community facilities district pursuant to
Section 53325.1 of the Act (including the issuance of bonds thereby), (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 any finds which have not been committed for any authorized purpose by the
time of the election to the person or entity advancing the funds; and
01003/0080/40169.01 1
WHEREAS, the City and the Owner desire to enter into this Deposit
Agreement in accordance with Section 53314.9 of the Act in order to provide for the
advancement of funds by the Owner to be used to pay costs incurred in connection with
the formation of the Community Facilities District and issuance of special tax bonds for
the Community Facilities District (the "Bonds"), and to provide for the reimbursement to
the Owner of such funds advanced, without interest, from the proceeds of any Bonds:
NOW, THEREFORE, for and in consideration of the mutual promises
and covenants herein contained, the parties hereto agree as follows:
Section 1. The Deposits and Application Thereof.
(a) The Owner has deposited herewith the amount of $76,500 (the
"Initial Deposit"). The City, by its execution hereof, acknowledges receipt of, and
accepts,the Initial Deposit.
(b) City hereby agrees and Owner hereby acknowledges that the City
shall hold the Initial Deposit, and any subsequent deposits pursuant to (c) hereof.
(c) The Initial Deposit and any subsequent deposit required to be made
by the Owner pursuant to the terms hereof(collectively, the "Deposits"), are to be used to
pay for any costs incurred for any authorized purpose in connection with the formation of
the Community Facilities District and the issuance of the Bonds (other than costs, fees
and expenses to be paid out of the proceeds of the Bonds), including, without limitation,
(i)the fees and expenses of any consultants to the City employed in connection with the
formation of the Community Facilities District and the issuance of the Bonds, including
an engineer, special tax consultant, financial advisor, bond counsel and any other
consultant deemed necessary or advisable by the City, (ii)the costs of appraisals, market
absorption and feasibility studies and other reports deemed necessary or advisable by the
City in connection with the formation of the Community Facilities District and issuance
of the Bonds, (iii) the costs of publication of notices, preparation and mailing of ballots
and other costs related to any hearing, election or other action or proceeding undertaken
in connection with the formation of the Community Facilities District and issuance of the
Bonds, (iv)reasonable charges for City staff time incurred in connection with the
formation of the Community Facilities District and the issuance of the Bonds by the
Community Facilities District, including a reasonable allocation of City overhead
expense related thereto, and (v) any and all other actual costs and expenses incurred by
the City in connection with the formation of the Community Facilities District and the
issuance of the Bonds (collectively, the "Initial Costs"). The City may as provided in
subsection(f) hereof draw upon the Deposits from time to time to pay the Initial Costs.
(d) If, at any time, the unexpended and unencumbered balance of the
Deposits is less than $5,000, the City may request, in writing, that the Owner make an
additional deposit in an amount estimated by the City to be sufficient, together with any
such unexpended and unencumbered balance, to pay for all Initial Costs. The Owner
shall make such additional deposit with the City within two weeks of the receipt by the
Owner of the City's written request therefor. If the Owner fails to make any such
2
01003/0080/40169 01
additional deposit within such two week period, the City may cease all work related to
the issuance of the Bonds.
(e) The Deposits shall be kept separately and may be invested in
lawful investments and the City shall at all times maintain records as to the expenditure
of the Deposits.
(f) The City shall draw upon the Deposits to pay the Initial Costs in
accordance with a statement in the form attached hereto as Exhibit A and by this
reference incorporated herein. The City shall pay such Initial Costs pursuant to such
statement as approved by the Director of Finance and Treasurer of the City.
(g) The City shall provide the Owner with a written monthly summary
of expenditures made from the Deposits, and the unexpended balance thereof, within ten
business days of receipt of the City of a written request therefor submitted by the Owner.
The cost of providing any such summary shall be charged to the Deposits.
Section 2. Return of Deposits; Reimbursement.
(a) As provided in Section 53314.9 of the Act, the approval by the
qualified electors of the Community Facilities District of the proposed special tax to be
levied therein is a condition to the repayment to the Owner of the funds advanced by the
Owner pursuant hereto. Therefore, if the qualified electors of the Community Facilities
District do not approve the proposed special tax to be levied thereon, the City shall have
no obligation to repay the Owner any portion of the Deposits expended or encumbered to
pay Initial Costs. In accordance with Section 53314.9 of the Act, if the qualified electors
of the Community Facilities District do not approve the proposed special tax to be levied
therein, the City shall return to the Owner any portion of the Deposits which have not
been expended or encumbered to pay Initial Costs by the time of the election on said
proposed special tax.
(b) If proceedings for the issuance of the Bonds are terminated, the
City shall, within ten business days after official action by the City or the Community
Facilities District to terminate said proceedings, the City shall return the then unexpended
and unencumbered portion of the Deposits to the Owner, including interest.
(c) If the Bonds are issued by the Community Facilities District, the
City shall reimburse the Owner, without interest, for the portion of the Deposits that has
been expended or encumbered, said reimbursement to be made within ten business days
after the issuance of such Bonds, solely from the proceeds of such Bonds and only to the
extent otherwise permitted under the Act. The City shall, within twenty (20) business
days after the issuance of such Bonds, return the then unexpended and unencumbered
portion of the Deposits to the Owner, including interest.
Section 3. Abandonment of Proceedings. The Owner acknowledges and agrees
that the issuance of the Bonds shall be in the sole discretion of the Community Facilities
3
0 1003/0 0 8 0/40 1 6U1
District. No provision of this Deposit Agreement shall be construed as an agreement,
promise or warranty of the City to issue the Bonds.
Section 4. Deposit Agreement Not Debt or Liability of City. As provided in
Section 53314.9(b) of the Act, this Deposit Agreement does not constitute a debt or
liability of the City, but shall constitute a debt and liability of the Community Facilities
District upon its formation. The City shall not be obligated to advance any of its own
funds to pay Initial Costs or any other costs incurred in connection with the issuance of
the Bonds. No member of the City Council of the City and no officer, employee or agent
of the City shall to any extent be personally liable hereunder.
Section 5. Notices. Any notices, requests, demands, documents, approvals or
disapprovals given or sent under this Deposit Agreement from one Party to another
(collectively, "Notices") may be personally delivered, transmitted by facsimile (FAX)
transmission, or deposit with the United States Postal Service for mailing, postage
prepaid, to the address of the other Party as stated in this Section. Notices shall be sent as
follows:
If to City: City of Palm Springs
Attn: City Manager
3200 Tahquitz Caynon Way
Patin Springs, California 92262
Telephone: (760) 323-8229
Fax No. (760) 323-8267
With copies to: Aleshire & Wynder, LLP
Attn: Urban J. Schreiner, Bond Counsel
18881 Von Karman Avenue, Ste. 400
Irvine, California 92612
Telephone: (949) 223-1170
Fax No. (949) 223-1180
If to Owner: Patin Springs Classic, LLC
c/o Lennar Homes of California, Inc.
Attn: Suzanne Johns
391 N. Main Street, Suite 301
Corona, CA 92880
Telephone: (951) 817-3649
Fax: (951) 817-3679
Each such notice, statement, demand, consent, approval, authorization, offer,
designation, request or other communication hereunder shall be deemed delivered to the
party to whom it is addressed (a) if personally served or delivered, upon delivery, (b) if
given by electronic communication, whether by telex, telegram or telecopier upon the
sender's receipt of an appropriate answerback or other written acknowledgement, (c) if
given by registered or certified mail, return receipt requested, deposited with the United
4
01003/0080/40169.01
States mail postage prepaid, 72 hours after such notice is deposited with the United States
mail, (d) if given by overnight courier, with courier charges prepaid, 24 hours after
delivery to said overnight courier, or (e) if given by any other means, upon delivery at the
address specified in this Section.
Section 6. California Law. This Deposit Agreement shall be governed and
construed in accordance with the laws of the State of California. The Parties shall be
entitled to seek any remedy available at law and in equity. All legal actions must be
instituted in the Superior Court of the County of Riverside, State of California, in an
appropriate municipal court in Riverside County, or in the United States District Court
for the Central District of California.
Section 7 Successors and Assigns. This Deposit Agreement shall be binding
upon and insure to the benefit of the successors and assigns of the parties hereto.
Section 8 Counterparts. This Deposit Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which shall constitute
but one and the same instrument.
Section 9. Other Agreements. The obligations of the Owner hereunder shall be
that of a party hereto. Nothing herein shall be construed as affecting the City's or
Owner's rights, or duties to perform their respective obligations, under other agreements,
use regulations or subdivision requirements relating to the development. This Deposit
Agreement shall not confer any additional rights, or waive any rights given, by either
party hereto under any development or other agreement to which they are a party.
Section 10. Titles and Captions. Titles and captions are for convenience of
reference only and do not define, describe or limit the scope or the intent of this Deposit
Agreement or of any of its terms. References to section numbers are to sections in this
Deposit Agreement, unless expressly stated otherwise.
Section 11. Interpretation. As used in this Deposit Agreement, masculine,
feminine or neuter gender and the singular or plural number shall each be deemed to
include the others where and when the context so dictates. The word "including" shall be
construed as if followed by the words "without limitation." This Deposit Agreement
shall be interpreted as though prepared jointly by both Parties.
Section 12. No Waiver. A waiver by either Party of a breach of any of the
covenants, conditions or agreements under this Deposit Agreement to be performed by
the other Party shall not be construed as a waiver of any succeeding breach of the same or
other covenants, agreements, restrictions or conditions of this Deposit Agreement.
Section 13. Modifications. Any alteration, change or modification of or to this
Deposit Agreement, in order to become effective, shall be made in writing and in each
instance signed on behalf of each Party.
Section 14. Severability. If any term, provision, condition or covenant of this
Deposit Agreement or its application to any party or circumstances shall be held, to any
5
01003/0080/40169.01
extent, invalid or unenforceable, the remainder of this Deposit Agreement, or the
application of the term, provision, condition or covenant to persons or circumstances
other than those as to whom or which it is held invalid or unenforceable, shall not be
affected, and shall be valid and enforceable to the fullest extent permitted by law.
Section 15. Computation of Time. The time in which any act is to be done
under this Deposit Agreement is computed by excluding the first day (such as the day
escrow opens), and including the last day, unless the last day is a holiday or Saturday or
Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays
as specified in Section 6700 and 6701 of the California Government Code. If any act is
to be done by a particular time during a day, that time shall be Pacific Time Zone time.
Section 16. Legal Advice. Each Party represents and warrants to the other the
following: they have carefully read this Deposit Agreement, and in signing this Deposit
Agreement, they do so with full knowledge of any right which they may have; they have
received independent legal advice from their respective legal counsel as to the matters set
forth in this Deposit Agreement, or have knowingly chosen not to consult legal counsel
as to the matters set forth in this Deposit Agreement; and, they have freely signed this
Deposit Agreement without any reliance upon any agreement, promise, statement or
representation by or on behalf of the other Party, or their respective agents, employees, or
attorneys, except as specifically set forth in this Deposit Agreement, and without duress
or coercion, whether economic or otherwise.
Section 17 Cooperation. Each Party agrees to cooperate with the other in this
transaction and, in that regard, to sign any and all documents which may be reasonably
necessary, helpful, or appropriate to carry out the purposes and intent of this Deposit
Agreement including, but not limited to, releases or additional agreements.
Section 18. Conflicts of Interest. No member, official or employee of City shall
have any personal interest, direct or indirect, in this Deposit Agreement, nor shall any
such member, official or employee participate in any decision relating to the Deposit
Agreement which affects his personal interests or the interests of any corporation,
partnership or association in which he is directly or indirectly interested.
[Signatures on following page]
6
01003/0080/40169 01
IN WITNESS WHEREOF, the Parties have executed this Deposit Agreement as
of the respective dates set forth below.
"CITY"
CITY OF PALM SPRINGS, a
municipal corporation
Dated: By:
David Ready, City Manager
ATTEST:
By:
James Thompson, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Bond Counsel
By:
URBAN J. SCHREINER
"OWNER"
PALM SPRINGS CLASSIC, LLC,
A Delaware limited liability company
By: Lennar Homes of California, Inc.,
A California corporation,
Its Manaaa ,-
By: CL�
Name: lor" 13/4iUKS
Title: VILE-- A2E5/tJ�/il d
Dated: July 11, 2005
7
01003/0080/40169.01
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
fl
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State of
ss.
1(111 CaliforniaCounlyof �Q-PFZ::i;xy"
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On before me
,
'Jane Doe,beer,Public)
mean i of Officer(a g
personally appeared
fir` Namefe)c191gnerfe)
E7-par§6�nally known to me
El proved to me on the basis of satisfactory
U,
evidence
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to be the perso*)—whose name(s)-silafe-
subscribed to the within instrument and J.
...... liifl=#Pl nm acknowledged to me that he/she/they-executed 4,ul
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the same in his/her/their authorized
IV cafpoaci)k$&), and that by histilher/their il
signature(e)-on the instrument the persoRH,or )l
If, the entity upon behalfpf-wl the p6:
acted, executed the instrument
;ai
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'i WITNESS a hI
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Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
iai
Description of Attached Document
Title or Type of Document:
Dlirrlocument Date: Number of Pages:
Signers)Other Than Named Above:
lib
K,
Capacity(ies) Claimed by Signer
Signer's Name: ji]
11 Individual Top DI thumb here ail
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Signer Is Representing:
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7
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EXHIBIT A
Community Facilities District No. 2005-1
(Escena) of The City of Palm Springs
WRITTEN STATEMENT NO. FOR
DISBURSEMENTS PURSUANT TO THE
DEPOSIT AND REIMBURSEMENT AGREEMENT
The undersigned hereby states and certifies:
(i) that he is the duly authorized Director of Finance and Treasurer of the City
of Palm Springs ("City"), and as such, is familiar with the facts herein certified and is
authorized and qualified to execute and deliver this certificate;
(ii) that he is authorized pursuant to the Deposit and Reimbursement
Agreement, dated as of July 11, 2005 (the "Agreement'), by and between the City of
Patin Springs and Palm Springs Classic, LLC, relating to the formation of Community
Facilities District No. 2005-1 (Escena) of the City of Palm Springs (the "CFD") to
execute this statement;
(iii) that pursuant to Section 1 (e) of the Agreement, the City is hereby directed
to disburse this date to the person or entity, designated on Exhibit 1 attached hereto and
by this reference incorporated herein, the respective sums set forth opposite each such
person or entity, in payment of certain expenses related to the CFD;
(iv) that each obligation shown on Exhibit 1 has been properly incurred and is
a proper charge against the Deposits;
(v) That no item to be paid pursuant to this Written Statement has been
previously paid or reimbursed from the Deposits; and
(vi) that capitalized terns used herein and not otherwise defined shall have the
meanings ascribed thereto in the Agreement.
1
01003/0080/4016M1
Dated: 2005 CITY OF PALM SPRINGS
Craig A. Graves, Director of Finance and
Treasurer
[Written Statement No._For Disbursements
Pursuant To The Deposit And Reimbursement Agreement]
2
01003/0080/40169 01
EXHIBIT 1
Payee Purpose Amount
1
01003/0080/40169.01
TO: CITY COUNCIL OF THE CITY OF PALM SPRINGS
FROM: PALM SPRINGS CLASSIC, LLC
PETITION (INCLUDING CONSENT AND WAIVER)
REQUESTING THE ESTABLISHMENT OF A
COMMUNITY FACILITIES DISTRICT
The undersigned landowner (the "Landowner") does hereby certify that the following
statements are all true and correct:
1. The Landowner has the authority to petition the City Council (the "Council") of
the City of Palm Springs (the "City") and to give the consent and waiver contained herein with
respect to a Community Facilities District to be established over the properties included within
this petition (the "CFD") to be formed under the provisions of the Mello-Roos Community
Facilities Act of 1982 (the "Act"), being Chapter 2.5 of Part I of Division 2 of title 5
(commencing with Section 53311) of the California Government Code.
2. The Landowner hereby certifies that as of the date indicated opposite the
Landowner's signature, the Landowner listed herein is the owner of the property within the
proposed boundary of the CFD described in Exhibit "A"hereto (the "Property").
3. The Landowner, pursuant to Section 53318 of the Act, hereby requests that
proceedings be commenced (i) to establish the CFD for the purpose of financing subdivision
public improvements in connection with a master planned cornnunity project known as
"Escena," (ii) to authorize the issuance of bonds for the CFD and (iii) to establish an
appropriations limit for the CFD.
4. In accordance with the provisions of the Act, and specifically Sections 53326(a)
and 53327(b) thereof allowing certain time and conduct requirements relative to a special
landowner election to be waived with the unanimous consent of all the landowners to be
included in a community facilities district and concurrence of the election official conducting the
election, the Landowner (i) expressly consents to the conduct of the special election at the
earliest possible time following the adoption by the Council of a Resolution of Formation
Establishing the CFD and (ii) expressly waives any requirement to have the special election
conducted within the time periods specified in Section 53326 of the Act or in the California
Elections Code.
5. The Landowner waives any requirement for the mailing of the ballot for the
special election and expressly agrees that said election may be conducted by mailed or hand-
delivered ballot to be returned as quickly as possible to the designated election official, being the
office of the City Clerk and the Landowner requests that the results of said election be canvassed
01003/0080/40421 02 illl
and reported to the Council at the same meeting of the Council as the public hearing on the
formation of the CFD or the next available meeting.
6. The Landowner expressly waives all applicable waiting periods for the election
and waives the requirement for analysis and arguments relating to the special election, as set
forth in Section 53327 of the Act, and consents to not having such materials provided to the
Landowner in the ballot packet, and expressly waives any requirements as to the form of the
ballot.
7. The Landowner expressly waives all notice requirements relating to hearings and
special elections, whether by posting, publishing or mailing, and whether such requirements are
found in the California Elections Code, the California Goverment Code or other laws or
procedures, including but limited to any notice provided for by compliance with the provisions
of Section 4101 of the California Elections Code.
IN WITNESS WHEREOF, the Landowner has executed this Petition (including Consent
and Waiver) this 1 Ith day of July, 2005.
PALM SPRINGS CLASSIC, LLC,
a Delaware limited liability company
By: LENNAR HOMES OF CALIFORNIA, INC.,
a California corporation,
its Manager
By:
Name: (Onn 13ANK5
Title: VICE- fo2C6i0L-ti'i
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF PALM SPRINGS
THIS 1 fir++ DAY OF -�J-ux.4 12005.
y Clerk
2
01003/0080/40421.02
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
ss.
County of
V"
Date Nanf�rud T, of Ofko,d �Sara Ddo,Note,Pro,fir')
On, before me, :I 4$c?)�-_ ts�tyiy,
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personally appeared
If M- ersonally known to me
El proved to me on the basis of satisfactory
evidence
to be the persons}whose name(&)- islate
subscribed to the within instrument and
WENDY
D'PETRAS acknowledged to me that holeHeH#aey executed
CM11=11131011#1538698
the same in hrsfNerkherr authorized jai
Notary Pubk-Colifornio capacitt�, and that by hi&*Ierf� f,
RIVeMe County signature*�on the instrument the person(*, or
WCOGM.E)q*es Dec 2L2J0O8 the entity upon behalf of which the persons}
acted, executed the instrument.
WITNF;SS my hand and o ial se I
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OPTIONAL
Though the information below is not required by law,It may prove valuable to persons relying on the document and could prevent rl
fraudulent removal and reattachment of this form to another document
Description of Attached Document
Ito N)
Title or Type of Document:
Ir
Document Date: Number of Pages:
Signer(s)Other Than Named Above:
Ir
Capacity(ies) Claimed by Signer
Signer's Name:
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Signer Is Representing:
Food No 5907 Reorder Call Toll Free 1-800 876-6827
EXHIBIT A
THE LAND REFERRED TO IN THIS PETITION (INCLUDING CONSENT AND
WAIVER) IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF
RIVERSIDE AND IS DESCRIBED AS THE LAND INCLUDED IN TENTATIVE
TRACT MAP NO. 32233 (EXCLUDING THE GOLF COURSE AND HOTEL SITES).
3
01003/0080/40421 02
TRANSMITTAL
DATE: July 11, 2005
TO: Urban Schreiner
FROM: Sharon Duensing
Lennar Communities Inland
RE: Palm Springs Classic
Please find attached the following:
1. Check No. 1043 in the amount of$76,500.00 for the deposit for the formation of the CFD at
Palm Springs Classic.
Enclosure
M cwue.s ✓ � U
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NAFoms\TRANSMITTAL-checks.doc FT?
Lennar Communities Inland • 391 N. Main Street, Ste. 301 • Corona, CA 92880 /LJ\
Main: (951) 817-3600 • Fax: (951) 817-3699 • lennar.com
PALM SPRINGS CLASSIC, LLC T 1043
MANAGERS
391 N MAIN ST. SUITE 301 E
CORONA, CA 92880 P -DATE—�! // D S 16-339/1220
PAY TO TH
ORDER OF �y 'I Q`rn C l n9 S �
e l.� ` 1 1 I . ](,�_�(JU•OO
DOLLARS
L �B C:ALIFORNIA BANK, TRUST�RVINE CENTER
FOR-L—ILEY)a c�¢M;N"T.,W1120010430' 1: 122003396�: 3090iSOi0iu' Authorized SttIStW7
"4-
^i�o,l4hv_V ,14rc_�iJak_a_ki_.
TRANSMITTAL
To: Urban Schreiner From: Sharon Duensing
Firm: Project Coordinator
Address:_ Date: July 11, 2005
CC. file
Re: Palm Springs Classic
Forwarding Via: __XX -G�vernightDelivery
_ Hand Delivery/Pick up Trans/Bag
Messenger/Courier USPS
No, of Originals: Description
2 Deposit and Reimbursement Agreement
2 JPetition requesting the establishment of a CFO
1 Check and cover transmittal for the requested deposit
Thl is material isbeingsent-Yo youattherquest of
This material is being sent for: -- -- _ — -
Signature& Approval _XX_As Requested
Review &.Comment Fill out A Return
Informatian'A Use
I
If you have any questions,please feel free to contact me.
Thank you.
vue 4zd B �
Lennar Communities Inland • 391 N. Main Street, Ste. 301 • Corona, CA 92880
Main: (951) 817-3600 • Fax: (951) 817-3699 • lennar.com