| | | | | | | | CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION | Agenda Item: 32C. |
| Date Prepared: 4/25/2024 | Council Meeting Date: 5/7/2024 |
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| | | | | | | | | TO: | Mike Faust, City Manager
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| | | | | | | | THROUGH:
| Kevin Burke, Deputy City Manager |
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| | | | | | | | | FROM:
| Sean Kindell, Chief Financial Officer
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| | | | | | | | SUBJECT:
| Development Agreement Amendment, Mystic at Lake Pleasant Heights Community Facilities District |
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| | | | | | | | Purpose:
Discussion and possible action to adopt RES. 2024-29 approving and authorizing the execution of the Second Amendment to the District Development, Financing Participation, and Intergovernmental Agreement. |
| | | | | | | | Summary:
The Mystic at Lake Pleasant Heights 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 August 2020, Council approved a Resolution authorizing requirements for the developer, Lake Pleasant (Phoenix) ASLI VIII, LLC, to provide a Letter of Credit Indemnity Deposit of $1.5 million.
After negotiations with the parties to the Mystic at Lake Pleasant Heights CFD Agreement, Council is asked to consider the attached Resolution, approving and authorizing the execution of the attached Second 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 Second Amendment to the Mystic at Lake Pleasant Heights CFD Agreement will also be presented to the Mystic at Lake Pleasant Heights CFD Board for approval on May 7, 2024. |
| | | | | | | | Previous Actions/Background:
In August 2020, Council approved a Resolution authorizing the District Development, Financing Participation, and Intergovernmental Agreement.
In May 2023, Council approved a Resolution authorizing the First Amendment to the District Development, Financing Participation, and Intergovernmental Agreement amending the infrastructure projects eligible for Community Facility District reimbursement. |
| | | | | | | | Staff Recommendation:
Staff recommends adoption of the attached Resolution as presented. |
| | | | | | | | Fiscal Analysis:
The developer, guarantor and indemnitor of the CFD, Lake Pleasant (Phoenix) ASLI VIII, LLC, is a single purpose limited liability company created by the investors and managing members for the sole purpose of managing and developing the Mystic at Lake Pleasant Heights 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. |
| | | | | | | | Contact Name and Number:
Sean Kindell, (623) 773-7819 |
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