HomeMy WebLinkAbout04-25-1994 Item #4City Council Meeting April 25, 1994
Agenda Item No. 4
CITY Cr' NEWPORT BEACH
TO: Mayor and Members of the City Council
FROM: CIOSA Implementation Ad Hoc Committee
SUBJECT: Status Report on CIOSA Implementation Program
Suggested Action
If desired, approve the concept of the formation of a CIOSA Implementation District, allow the
Ad Hoc Committee to continue meeting regarding the formation of the district, and authorize
staff to retain bond counsel to advise City staff on the formation of the district.
Background
In June of 1993, the California Coastal Commission gave final approval to the Circulation
Improvement and Open Space Agreement (CIOSA). The agreement was then executed and
recorded. In November of 1993, the voters of the City of Newport Beach rejected proposed
Measure A, which would have provided funds to purchase two sites subject to the CIOSA
Agreement, Upper Castaways and Newporter North. In December of 1993, the City Council
formed an Ad Hoc Committee to develop an implementation strategy for the CIOSA Agreement.
The Committee, with the support of City staff, has met with representatives of The Irvine
Company for the past four months, during which a concept for implementation has been
developed.
Discussion
The public benefits of the CIOSA Agreement come from the open space to be dedicated as
development proceeds and the circulation system funding program set forth in the agreement.
The Agreement sets forth in detail the sequence of open space dedication. This implementation
program primarily addresses the financing of the circulation system funding program.
The Irvine Company anticipates that four of the approved residential development projects will
proceed within the next two years. These are Upper Castaways, Newporter North, San Diego
Creek South and Bayview Landing. These developments will allow for the dedication of
significant park and open space areas on these sites. The Irvine Company has also indicated that
they will consider early access to or dedication of certain park sites, as well as early access to
funds needed by the City for the MacArthur Boulevard project.
TO: Mayor and Members of the City Council - 2.
The discussion of the Committee took place with the knowledge that the ability of developers to
finance infrastructure obligations has changed in recent years. It is now very difficult to finance
through conventional methods any pre -development costs. It is therefore the position of The
Irvine Company that the early fair share and cash advance obligations can only be financed
through other methods.
After exploring the available options, it was determined that the formation of a CIOSA
Implementation District would be the best available financing mechanism for the circulation
system funding obligations required by the agreement. This district would have characteristics
which are similar to a Community Facilities District. The formation of such a district was
contemplated in the CIOSA Agreement. Under this proposal, The Irvine Company will commit
to form the District which will cover the remaining eight undeveloped sites which are subject to
the CIOSA Agreement. The district would issue bonds as each development proceeds, providing
the circulation funding levels anticipated in the agreement.
The advantages to this approach are:
1. The bond obligation will be paid by persons who "buy into" the district. No costs will accrue
to existing taxpayers.
2. The sale of bonds can be phased to allow the City to achieve the greatest amount of leverage
for outside road funding.
3. The district is not an assessment district which requires an annual hearing by the City Council.
4. The bonds may be prepaid on homeowners request.
Attached to this report is a letter from The Irvine Company regarding the implementation of the
CIOSA Agreement, an outline of the CIOSA District parameters prepared by TIC, and a draft
circulation improvement construction priority matrix prepared by the Public Works Department.
Respectfully submitted,
PLANNING DEPARTMENT
JAMES D. HEWICKER, Director
ByA2sem_
Patricia L. Temple
Advance Planning Manager
Attachments
PLT:.AVA WORD\C1AHC1.DOC
NEWPORT BEACH CIOSA
IMPLEMENTATION DISTRICT SUMMARY
APRIL 13, 1994
1. GOAL:
The goal of CIOSA Implementation District is to establish the funding program for the
financial commitments outlined in the CIOSA agreement. The program is in compliance
with the Development Agreement and will be structured to allow the City to derive the
road funding benefits of the Agreement in a timely manner with the development of The
Irvine Company's properties.
2. OVERVIEW:
As contemplated in CIOSA, The Irvine Company will commit to formation of a CIOSA
Implementation District covering its properties outlined in the Agreement, providing for
the funding of $20.3 million in improvements. Concurrent with the District formation
process, The Irvine Company will proceed with the planning and approval of specific
plans for several properties, preparing them for construction after the formal adoption
of the District.
• Properties to be included in the District formation:
• Upper Castaways
• Newporter North
• San Diego Creek South
• Freeway Reservation North
• Block 800
• Corporate Plaza West
• Newport Village will also be included in the CIOSA District to fund
certain project specific improvements.
• Bayview Landing will be included for Fair Share Fees (only) if developed
for Seniors Affordable Housing.
• District will satisfy financial obligations of CIOSA.
• District bond issues and the timing of improvements to be phased with
actual development of each site and City needs.
1
3.
4.
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CIOSA COMMITMENTS:
TOTAL CIOSA COMMITMENTS
Less MacArthur Blvd. Improvements
Anticipated to be Constructed by TCA
Less MacArthur Frontage Improvements
and Fair Share Fees Funded
by Freeway Reservation South
CIOSA COMMITMENT TO BE FINANCED
Payment of Fair Share Fees
Project Frontage Improvements
Items Constituting "Loan"
COMMITMENTS TO BE FINANCED
$21.1 Million
( .5 million)
( .3 million)
$20.3 Million
$ 1.5 million (estimated)
$ 4.5 million
$14.3 million (estimated)
20.3 million
• "Loan" amount will be converted to list of improvements to be eligible for
District funding.
• "Loan" will fund improvements on City priority list.
• Prioritization determined by nexus to CIOSA properties and City
needs.
FINANCING OBJECTIVES:
• Fund infrastructure improvements in a phased manner with actual
development of each site and with City needs.
• Multiple bond issues to be timed with the Company's phased development
program.
• Conservative special tax payment structure for property owners, which
provides for equitable and predictable payments from year to year.
FORMATION PARAMETERS:
• Use of charter city powers to create a "CIOSA" Financing District with
essentially the characteristics of a Community Facilities District (CFD):
• Bonds will be authorized in amount to finance all required
CIOSA improvements for development.
• Phase bond issues to generally coincide with development
requirements, and need for construction of related CIOSA
improvements. Fair Share Fees to be included in the first
bond issue.
42
THE IRVINE COMPANY
April 20, 1994
Mayor Clarence Turner
Members of the City Council
City of Newport Beach
City Hall
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, California 92658-8915
Subject: Implementation of the Circulation Improvement and Open Space Agreement
between the City of Newport Beach and The Irvine Company
Dear Mayor and Council Members:
As you are aware, The Irvine Company has had discussions with your Ad Hoc Committee and
city staff during the past several months regarding the implementation of the Circulation
Improvement and Open Space Agreement (CIOSA). We believe these discussions have been
productive and that the formation of a financing district is the best way to assure the
implementation in a timely and orderly fashion.
The Circulation Improvement and Open Space Agreement, which has been approved by the City
Council and California Coastal Commission, is a mutually beneficial Agreement which was the
product of more than three years of planning and consensus building with the community.
Ultimately, it will produce more than $20 million to significantly improve traffic circulation in
Newport Beach, and will result in the donation of 152 acres of open space land for parks,
natural areas and public facilities. This will be financed by new development, not the existing
taxpayers of Newport Beach.
Consistent with the provisions of the CIOSA Agreement, the parties agreed to hold the Measure
"A" election. As a result, we believe the community has had the opportunity to thoroughly
debate and decide the merits of this Agreement. And, it is evident that the majority of the
community believes we have a good plan that provides important open space and road
improvements, and it should be implemented.
We are now prepared to proceed forward with the development of some of our properties and
the implementation of our Agreement. A financing district, as contemplated in the CIOSA
Agreement and recommended by your Committee will serve as a viable funding mechanism to
meet the City's road improvement goals as we develop our properties. We agree that the district
will involvenc�l ► our development properties. The district will issue bonds with the actual
development of each site.
550 Newport Center Drive, Suite 700, P.O. Box I, Newport Beach, California 92658-8904 3
Mayor Clarence Turner
Members of the City Council
April 20, 1994
Page 2
The Irvine Company anticipates the first four development projects will include Upper
Castaways, Newporter North, San Diego Creek South and an affordable senior housing program
at Lower Bayview Landing. We currently estimate these projects will be under construction in
approximately two years, and will finance several of the City's highest priority road
improvements, among them MacArthur Boulevard. Also, approximately 100 acres of public
open space land, including sites for two view parks and an active park at Upper Castaways will
be transferred to City ownership.
We look forward to continuing to work with the City toward the implementation of our
Agreement.
Sincerely,
Tom Redwitz
Senior Director
Development Entitlement
TR: sp
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FORMATION PARAMETERS (Contd.):
• Eligible improvements identified at the beginning. A
finding will be made that a reasonable relationship exists
between eligible improvements and properties within
District boundaries.
• Rate and method of apportionment of special tax will tax
"developed" property at specified percentage of maximum
tax.
• Bonds may be prepaid on homeowner request.
6. TENTATIVE SCHEDULE:
• DISTRICT FORMATION
MILESTONES
MONTH
YEAR
• Conceptual Approval/CIOSA Financing
District
April
1994
• Prepare CIOSA Financing District
Ordinance
Summer
1994
• Ordinance Approval
August
1994
• District formation Approval
January
1995
• First Bond Closing/Funding of CIOSA
Phase I Improvements (Earliest
Possible)
Fall
1995
• DEVELOPMENT PROJECTS
These schedules assume the District formation schedule outlined above is
achieved.
Unser Castaways and Newporter North
• Tentative Map/Site Plan Review commencing Spring 1994.
• City approval obtained Winter 1994.
• Commence Coastal Commission processing Winter 1994.
• Coastal Commission approval obtained Spring 1995.
• Grading Permit obtained Spring 1995.
• First Building Permit obtained Fall 1995.
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3
• DEVELOPMENT PROJECTS (Contd. )
San Diego Creek South and Bayview Landing
• Tentative Map/Site Plan Review commencing Summer 1994.
• City approval obtained Winter 1994/95.
• Commence Coastal Commission processing Winter 1994/95.
• Coastal Commission approval obtained Spring 1995.
• Grading Permit obtained Summer 1995.
• First Building Permit obtained Fall 1995.
NOTE: The remaining CIOSA projects are currently under review.
I
4
DRAFT CIRCULATION SYSTEM BUILDOUT CIOSA PROJECTS CONSTRUCTION PRIORITY DRAFT
PROJ
NO
LOCATION
TOTAL
CITY COSTS
1
2
CIOSA PROJECTS
3 4 5 6
7 ••
13&14
MacArthur-CH-SJHR
5,300,000
Block 800
A
A
A
A
A
17
Irvine-University/Bristol
1,200,000
A
A
62
55/73 Ramp D
150,000
C
B
B
B
B
64
Irvine/17th/Westcliff
155,000
A
B
15
MacArthur-SJHR/Ford
7,900,000
A
A
A
A
A
49&50
Birch/Bristol Bridge
1,000,000
A
A
B
A
20a
Dover-Cliff/16th
1,100,000
A
C
20b
Dover/Westcliff
300,000
A
C
66
Coast Hwy-E'ly Seaward
500,000
B
B
B
8
Rt 1/55 Grade Sep
6,500,000
B
C
B
B
9
Newport BI-Cst Hwy/Hosp
1,050,000
C
C
C
C
63
Bristol-Irvine/Birch
500,000
B
B
C
B
54
Bristol/Jamboree/Flyover
1,100,000
B
A
C
B
68
Westcliff/Irvine
500,000
B
C
11a
Jamboree/Ford
2,200,000
B
B
C
B
11b
Jamboree/Bison
1,400,000
B
B
C
B
11c
Jamboree/University
400000
B
A
C
B
46
MacArthur/Campus
500,000
C
C
C
62
Rt 55/73 Ramp B
550,000
C
B
B
B
B
70
Jamboree/Campus
900,000
C
C
C
C
C
71
MacArthur/Jamboree
250,000
B
B
C
C
C
2a
Coast Hwy-Riv/Tustin
1,100,000
B
C
C
C
12
Bayview-Jamboree/MacAr
3,200,000
C
C
2c
Coast Hwy-Newport/Rivsd
2,000,000
C
C
C
C
26
16th Street-Dover/Seagull
800,000
C
3
Coast Hwy-Dover/Jamboree
3,500,000
C
C
C
C
2b
Coast Hwy-Dover/1100' Wly
1,500,000
C
C
C
C
2d
Coast Hwy-Tustin/1100'W ly Dov
7,200,000
C
C
C
C
13a
MacArthur-Cst Hwy/San Miguel
400,000
D
D
D
D
D
5
Coast Hwy/Jamboree Grd Sep
6,000,000
D
D
D
D
0
TOTAL
$59,155,000
CIOSA PROJECTS
1.
Upper Castaways
2.
Newporter North
3.
San Diego Creek South
4.
Bayview Landing
5.
Block 800
6.
Freeway Reservation North
7.
Corporate Plaza West
CONSTRUCTION PRIORITY
A
B
C
D
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March 24, 1994
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