Placement: Resolutions
Action Requested: Motion / Vote
title
Resolution 19-R104, Payoff of Southern Grove Community Development District Assessment Infrastructure Debt for the VGTI Property and Torrey Pines Property.
body
Submitted By: Wes McCurry, CRA Director
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Executive Summary (General Business): To avoid all future annual SGCDD infrastructure debt assessments for the VGTI and Torrey Pines properties and make one-time payoff payments of $39,418.44 for VGTI and $95,846.36 for Torrey Pines, for a total of $135,264.80.
Presentation Information: Questions will be answered upon request.
Staff Recommendation: Move that the Council approve the one-time payoff payments as presented.
Alternate Recommendations:
1. Move that the Council amend the recommendation approve the one-time payoff payments as presented .
2. Move that the Council provide staff direction.
Background: Two City-owned properties are subject to Southern Grove Community Development Districts (SGCDDs) assessments to repay infrastructure debt: the VGTI parcel, with an $84,184.18 annual assessment under the current structure, and the Torrey Pines parcel with a $43,171.38 current annual assessment (total of $127,355.56 annually). The SGCDDs have proposed restructuring their infrastructure debt in a manner that will allow the City to avoid all future annual assessments and make one-time payoff payments of $39,418.44 and $95,846.36 (VGTI and Torrey Pines parcels, respectively, for a one-time total of $135,264.80).
Issues/Analysis: If the City agrees to make these payments on or before November 15, 2019, the SGCDDs may proceed with the restructuring and save the City future SGCDD debt service on the two properties. If the City does not agree, the SGCDDs will be unable to restructure the infrastructure debt on such favorable terms.
Financial Information: N/A
Special Consideration: N/A
Location of Project: Southern Grove DRI.
Attachments:
1. Resolution
a. Exhibit “A” - Payoff Letters
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
LEGAL SUFFICIENCY REVIEW:
Reviewed by Elizabeth L. Hertz, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.