TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
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Declaration of Intention to Establish Community Facilities District 2026-1 (The Meadows).
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RECOMMENDATION
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1) Adopt Resolution No. 2026-006, declaring the City of Chino’s intention to establish Community Facilities District No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein; 2) adopt Resolution No. 2026-007 declaring the City of Chino’s Intention to Incur Bonded Indebtedness for the proposed Community Facilities District No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
The City will receive City Services Tax revenue of approximately $332,962.00 per year upon build out of Community Facilities District No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein. This revenue is intended to offset the cost of providing City services to the homes within Community Facilities District No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
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BACKGROUND
Tri Pointe Homes Inc. (Tri Pointe) is developing the property within the proposed boundaries of Community Facilities District No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein. CFD No. 2026-1 is currently planned to be developed by Tri Pointe into a single family residential development of 516 homes to be known as “The Meadows.” Tri Pointe is using a land bank, KL LB BUY 3 LLC, a Delaware limited liability company (Landbank), as a financing vehicle for The Meadows development. The location of the proposed development within the City is located as the southwest corner of Bickmore Avenue and West Preserve Loop. See attached map.
Tri Pointe has requested the City initiate the formation of CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein to finance the City’s development impact fees and required infrastructure improvements related to storm drain, water, sewer, street, lighting and landscaping improvements as a result of the development (collectively, the Facilities). The proposed CFD will also provide the City financing for certain municipal services of the City to be provided within the boundaries of CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein, including maintenance of parks, parkways, and open space; flood and storm protection; operation of storm drainage systems; and public safety services.
The terms upon which the Facilities will be financed by CFD No. 2026-1 will be governed by an acquisition agreement for each of the Improvement Areas, by and between the City, acting for itself and on behalf of the CFD No. 2026-1 and each of the Improvement Areas, and Tri Pointe.
ISSUES/ANALYSIS
Current Government Code provisions require the City to adopt a Resolution of Intention to establish CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein, and to declare its intention to incur bonded indebtedness for the proposed CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein. The form of Acquisition Agreement will also be approved by the Resolution of Intention; The City must also set a public hearing date for no less than 30 days, and no more than 60 days after the date the Resolution of Intention is approved. Prior to the public hearing, a public notice must be published in a local newspaper. After the public hearing has been held, an election is held for the affected property owners to cast their ballots. The ballots are then counted, and if the CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein is approved by the property owner(s), the City adopts a resolution determining the formation of the CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein.
On March 3, 2026, a public hearing will be scheduled on the following:
1. Establishment of CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein and the levy of a special tax therein
2. Approval of the proposed bonds for CFD No. 2026-1 and Improvement Area Nos. 1, 2 and 3 therein
The levy of the proposed special tax shall be subject to approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mail or hand delivered ballots to the landowners in each of the proposed Improvement Areas.
Pursuant to Section 53314.9 of the Mello-Roos Community Facilities Act of 1982, the City proposes to authorize bonded indebtedness for financing the acquisition and/or construction of certain public improvements and City development impact fees not to exceed the aggregate principal amount of $17,000,000 for Improvement Area No. 1, $6,500,000 for Improvement Area No. 2 and $8,500,000 for Improvement Area No. 3.
The CFD bonds are payable from and secured by special taxes, which are levied upon each individual property within the applicable Improvement Area. The General Fund of the City of Chino is not obligated to pay debt service on the bonds.
Attachments: Resolution No. 2026-006 Exhibits A, B, C, D and E, Maps
Resolution No. 2026-007