HomeMy WebLinkAboutAGENDA REPORT 1996 1204 CC REG ITEM 07ECity of Moorpark
Agenda Report
w �
TO: Honorable City Council '
f
FROM: Richard Hare, Deputy City Manage
r
1
r
SUBJECT: Consider Authorizing the City Manager to Engage
a Financial Advisor and Appraiser for the Formation
of a Community Facilities District (CFD) for the Development
of the Simi- Moorpark Freeway Properties /C T. Financial Property (SP 92 -1)
DATE: November 21, 1996
The developers of the Carlsberg site, Specific Plan 92 -1, wish to form a Mello -Roos Community
Facilities District (CFD) to fund basic infrastructure for the business park/sub - regional retail
commercial portion of the site. The preliminary work required to evaluate the feasibility of the
formation of a CFD should be performed by a Financial Advisor and an Appraiser. If the City
Council subsequently authorizes the issuance of bonds, then the additional services of an
Underwriter, Disclosure Counsel, and Bond Counsel would be secured on a contingency basis. If
the bonds are not sold, then no fees would be paid.
The developer would be required to deposit with the City sufficient funds to cover any anticipated
costs. Upon receipt of the deposit, the City Manager would engage the professional services
required. Staff recommends the hiring of a financial advisor, selected and hired by the City at the
developer's cost, and the initiation of an appraisal, also at the developer's expense. It is the City
Manager's intent to engage Urban Futures as Financial Advisor due to their previous successful
service to the City on the formation of the Moorpark Redevelopment Agency (MRA) and sale of
bonds for the MRA. On the December 18, 1996 City Council meeting, staff is expected to return
with a recommendation for an Underwriter, Disclosure Counsel, and Bond Counsel.
It is estimated an eight to ten million dollar bond issue would be sold to finance the infrastructure
for this portion of the development. The exact sizing of the bond issue would be determined after
detailed review of the project, the bond market, the financial strength of the developer and an
appraisal of the property.
O(1( ()Gb
Recommendation:
Authorize the City Manager to engage a Financial Advisor and Appraiser for the Formation of a
Community Facilities District and to sign a reimbursement agreement with the developer, Simi-
Moorpark Freeway Properties /C.T. Financial, for all costs including staff time.
961121.117
00oQ67