Discussion and possible action to adopt RES. 2024-28 approving and authorizing the execution of the Third Amendment to the District Development, Financing Participation, and Intergovernmental Agreement.

The Vistancia North CFD Agreement is the primary agreement between the CFD, the City of Peoria and the developer providing for the manner in which the CFD will finance and acquire infrastructure from the developer and the rights and obligations of the developer.

In June 2021, Council approved a Resolution authorizing requirements for the developer, Vistancia Development LLC, to provide a Letter of Credit Indemnity Deposit of $1.5 million.

After negotiations with the parties to the Vistancia North CFD Agreement, Council is asked to consider the attached Resolution, approving and authorizing the execution of the attached Third Amendment to the District Development, Financing Participation and Intergovernmental Agreement to reduce the amount of the Letter of Credit (Indemnity) from $1,500,000 to $350,000.

The Third Amendment to the Vistancia North CFD Agreement will also be presented to the Vistancia North CFD Board for approval on May 7, 2024.

In September 2020, Council approved a Resolution authorizing the District Development, Financing Participation, and Intergovernmental Agreement.

In June 2021, the Council approved a Resolution authorizing the First Amendment to the District Development, Financing Participation, and Intergovernmental Agreement effecting the assignment of rights and obligations to a single purpose entity, Vistancia Development LLC.

In May 2023, Council approved a Resolution authorizing the Second Amendment to the District Development, Financing Participation, and Intergovernmental Agreement amending the infrastructure projects eligible for Community Facility District reimbursement.

Staff recommends adoption of the attached Resolution as presented.

The developer, guarantor and indemnitor of the CFD, Vistancia Development LLC is a single purpose limited liability company created by the investors and managing members for the sole purpose of managing and developing the Vistancia project.  The ability of this entity to fully indemnify the CFD and City against claims and losses is limited, creating risks for the CFD and City. To mitigate  such risks, the developer is required to provide a letter of credit deposit of $350 thousand. The CFD has the authority to assess an operation and maintenance tax of up to $0.30 per $100 of assessed valuation for expenses but has not assessed this tax since inception and does not plan to do so.