REQUEST FOR CITY COUNCIL ACTION
DATE: 07/21/2021
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Title
Resolution declaring the City’s intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) and adopting a map of the area proposed to be annexed thereto (Annexation No. 27).
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EXECUTIVE SUMMARY:
The property owner requests annexation into the City’s Community Facilities District No. 2016-3 (Maintenance Services) (“CFD No. 2016-3”) to provide maintenance services for public facilities within and for the benefit of the proposed development.
RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution No. 2021-091, declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, and adopting a map of the area proposed to be annexed thereto (Annexation No. 27).
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BACKGROUND & HISTORY:
On December 7, 2016, the City Council approved Resolution No. 2016-112 establishing Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona (the "CFD No. 2016-3" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.
Development projects are subject to conditions of approval that require projects to form or annex into a maintenance district. These districts apply an annual fee or special tax upon properties within the District, which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development.
HI Corona, LLC, a California Limited Liability Company (the “Owner”) has submitted a Petition to the City requesting that Assessment Parcel Numbers 113-360-051, 113-360-052, and 113-360-054 be annexed to CFD No. 2016-3. The Petition includes the waiver and consent by the Owner, which is on file in the City Clerk's office that authorizes the City to: (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; and (4) waive all noticing requirements relating to the conduct of the election immediately following the public hearing.
ANALYSIS:
The development is comprised of an empty lot located south of Ontario Ave at Vesper Circle. The gross acreage for the entire property in the boundary area is approximately 1.29 acres, as shown in Exhibit “A” of Resolution No. 2021-091 (“Subject Parcel”). The Owner proposes to construct a learning center with a playground.
As a condition of approval, the Subject Parcel is required to be annexed into Community Facilities District No. 2016-3 (“CFD No. 2016-3”) in order to pay for the maintenance of street lighting and street maintenance.
Should Resolution No. 2021-091 be approved, and the annexation process proceed, a public hearing of the proposed annexation shall be held on September 1, 2021.
FINANCIAL IMPACT:
The proposed annexation will establish Tax Zone 27 within the CFD No. 2016-3. The Subject Parcel will be assessed as a commercial unit and will benefit from the existing and future street lighting and street maintenance. This annexation will yield an estimate of $1,497 annually in special assessment revenue for the District at build-out as planned.
The total annexation cost will be paid by the Owner.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely declares the City’s intent to annex the Subject Parcel to CFD No. 2016-3 and there is no possibility that adopting this resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: LIEN-CHI CANTUBA, FINANCIAL ANALYST III
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:
1. Exhibit 1 - Annexation No. 27 Project Map
2. Exhibit 2 - Resolution No. 2021-091