24-1507RESOLUTION NO. 24-1507
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (LEGADO)
OF THE CITY OF MENIFEE, AMENDING THE BOUNDARY MAP OF THE DISTRICT,
AMENDING THE RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT
AREA NO. 2, DECREASING THE MAXIMUM AUTHORIZED BONDED
INDEBTEDNESS FOR IMPROVEMENT AREA NO. 2, DESIGNATING IMPROVEMENT
AREA NO. 3 OF THE DISTRICT AND DECLARING THE NECESSITY TO INCUR
BONDED INDEBTEDNESS WITHIN IMPROVEMENT AREA NO. 3
WHEREAS, after a public hearing, on September 21, 2022, the City Council (the "City Council")
of the City of Menifee (the "City") adopted Resolution Nos. 22-1222 (the "Resolution of Formation") and
22-1223 (the "Resolution to Incur Bonded Indebtedness") which formed Community Facilities District No.
2022-3 (Legado) of the City of Menifee (the "District' or "Community Facilities District No. 2022-3"),
designated two improvement areas therein ("Improvement Area No. 1" and "Improvement Area No 2")
and called a special election on September 21, 2022, within each improvement area on three propositions
relating to the levying of a special tax, the incurring of bonded indebtedness and the establishment of an
appropriations limit for the District, which were approved by a more than two-thirds vote of the qualified
electors within each improvement area on September 21, 2022; and
WHEREAS, subsequent to formation, the District received a petition signed by BLC Fleming LLC,
a Delaware limited liability company (the "Owner"), which currently owns more than 25% of the taxable
land within Improvement Area No. 2, to initiate certain changes to (i) amend the boundary map of the
District to exclude certain property from Improvement Area No. 2; (ii) amend and restate the original rate
and method of apportionment of special tax for Improvement Area No. 2 (the "Original Improvement Area
No. 2 Rate and Method") in the form attached as Exhibit A (the "Amended Improvement Area No. 2 Rate
and Method") to Resolution No. 24-1500 (the "Resolution of Consideration"); (iii) designate Improvement
Area No. 3 of the District within the property that is being excluded from Improvement Area No. 2 in
connection with these proceedings, (iv) authorize the levy of a special tax within Improvement Area No.
3 in accordance with the rate and method of apportionment for Improvement Area No. 3 attached to the
Resolution of Consideration as Exhibit C (the "Improvement Area No. 3 Rate and Method"); and (v)
authorize the issuance of bonds of the District for Improvement Area No. 3 in a maximum principal amount
not to exceed $28,000,000 (collectively, the "Change Proceedings"); and
WHEREAS, on October 2, 2024, the City Council, acting as the legislative body of Community
Facilities District No. 2022-3, approved the Resolution of Consideration, stating its intention to consider
the approval of the Change Proceedings; and
WHEREAS, on November 6, 2024, this City Council conducted a noticed public hearing to
determine whether it should proceed with the approval of the Change Proceedings; and
WHEREAS, at the November 6, 2024, public hearing all persons desiring to be heard on all
matters pertaining to the approval of the Change Proceedings were heard and a full and fair hearing was
held; and
WHEREAS, the City Council determines herein that there have been fewer than twelve registered
voters residing in Improvement Area No. 2 and Improvement Area No. 3 for the period of 90 days prior
to November 6, 2024, and that the qualified electors within Improvement Area No. 2 and Improvement
Area No. 3 are the landowners therein; and
Resolution Approving Change Proceedings for CFD No. 2022-3 (Legado)
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to
proceed with the approval of the Change Proceedings.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-3 (LEGADO) OF THE CITY
OF MENIFEE, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. The amended boundary map of the District as shown on the map designated "Proposed
Amended Boundary Map Community Facilities District No. 2022-3 (Legado) City of
Menifee, County of Riverside, State of California," which map is on file in the office of the
City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and
Highways Code in the County Book of Maps of Assessment and Community Facilities
Districts in the Assessor -County Clerk -Recorder's office of the County of Riverside in Book
No. 94 Page Nos. 36-38 on October 15, 2024, as Instrument No. 2024-0309563.
Section 3. The City Council hereby adopts the Amended Improvement Area No. 2 Rate and Method
attached as Exhibit A to the Resolution of Consideration as the rate and method for
Improvement Area No. 2. Except where funds are otherwise available, it is the intention of
the City Council, subject to the approval of the eligible voters within Improvement Area
No. 2, to levy the proposed special taxes at the rates set forth in Exhibit A to the Resolution
of Consideration on all non-exempt property within Improvement Area No. 2 sufficient to
pay for (i) the Facilities (as defined in the Resolution of Formation), (ii) the principal and
interest and other periodic costs on the bonds proposed to be issued by the District for
Improvement Area No. 2 to finance the Facilities and other expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement
and liquidity facility fees (including such fees for instruments that serve as the basis of a
reserve fund in lieu of cash), administrative expenses and other expenses of the type
permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses (as defined in
the Resolution of Formation). The Amended Improvement Area No. 2 Rate and Method is
described in detail in Exhibit A to the Resolution of Consideration, which is incorporated
herein by this reference, and the City Council hereby finds Exhibit A to the Resolution of
Consideration contains sufficient detail to allow each landowner within Improvement Area
No. 2 to estimate the maximum amount of Special Taxes that may be levied against each
parcel. The special tax in Improvement Area No. 2 shall be not be levied later than Fiscal
Year 2064-2065.
The City Council hereby adopts the Improvement Area No. 3 Rate and Method attached
as Exhibit C to the Resolution of Consideration as the rate and method for Improvement
Area No. 3. Except where funds are otherwise available, it is the intention of the City
Council, subject to the approval of the eligible voters within Improvement Area No. 3, to
levy the proposed special taxes at the rates set forth in Exhibit C to the Resolution of
Consideration on all non-exempt property within Improvement Area No. 3 sufficient to pay
for (i) the Facilities (as defined in the Resolution of Formation), (ii) the principal and interest
and other periodic costs on the bonds proposed to be issued by the District for
Improvement Area No. 3 to finance the Facilities and other expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement
and liquidity facility fees (including such fees for instruments that serve as the basis of a
reserve fund in lieu of cash), administrative expenses and other expenses of the type
permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses (as defined in
Resolution Approving Change Proceedings for CFD No. 2022-3 (Legado)
the Resolution of Formation). The Improvement Area No. 3 Rate and Method is described
in detail in Exhibit C to the Resolution of Consideration, which is incorporated herein by
this reference, and the City Council hereby finds Exhibit C to the Resolution of
Consideration contains sufficient detail to allow each landowner within Improvement Area
No. 3 to estimate the maximum amount of Special Taxes that may be levied against each
parcel. The special tax in Improvement Area No. 3 shall be not be levied later than Fiscal
Year 2064-2065.
Section 4. It is necessary to incur bonded indebtedness of the District in a maximum aggregate
principal amount not to exceed $28,000,000 for Improvement Area No. 3. The
indebtedness is to be incurred for the purpose of financing the costs of the Facilities and
Incidental Expenses, and carrying out the powers and purposes of the District, including,
but not limited to, financing the costs of selling the bonds, establishing and replenishing
reserve funds, any remarketing, credit enhancement and liquidity facility fees (including
such fees for instruments that serve as the basis of a reserve fund in lieu of cash),
administrative expenses and other expenses of the type permitted by Section 53345.3 of
the Act.
The whole of the property within Improvement Area No. 3, other than property exempted
from the special tax pursuant to the provisions of the Improvement Area No. 3 Rate and
Method, shall pay for the bonded indebtedness of the District for Improvement Area No. 3
pursuant to the levy of the related special tax. The maximum term of any series of the
bonds to be issued for Improvement Area No. 3 shall in no event exceed thirty-five (35)
years from the date of issuance of the bonds, or such longer term as is then permitted by
law.
The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate
permitted by law, payable annually or semiannually, or in part annually and in part
semiannually, except the first interest payment may be for a period of less than six months,
with the actual rate or rates and times of payment to be determined at the time or times of
sale thereof.
The bonds may bear a variable or fixed interest rate, provided that such variable rate or
the fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act,
or any other applicable provision of law limiting the maximum interest rate on the bonds.
Section 5 At the time the District was formed, the maximum principal amount of bonded
indebtedness that may be incurred by the District within Improvement Area No. 2 that was
authorized was $45,000,000. The City Council, acting as the legislative body of the
District, hereby determines that upon the authorization of the special taxes and bonded
indebtedness for Improvement Area No. 3, it shall not incur bonded indebtedness within
Improvement Area No. 2 in a principal amount in excess of $17,000,000.
Section 6. Written protests against the approval of the Amended Improvement Area No. 2 Rate and
Method and the Improvement Area No. 3 Rate and Method and the Facilities and
Incidental Expenses authorized to be financed by the District have not been filed by one-
half or more of the registered voters within the boundaries of Improvement Area No. 2 or
Improvement Area No. 3. The City Council hereby finds that the approval of the Amended
Improvement Area No. 2 Rate and Method and the Improvement Area No. 3 Rate and
Method and the Facilities and Incidental Expenses authorized to be financed by the District
have not been precluded by a majority protest pursuant to Section 53337 of the Act.
Section 7. An election is hereby called within the amended boundaries of Improvement Area No. 2
on the proposition of approving the Amended Improvement Area No. 2 Rate and Method
Resolution Approving Change Proceedings for CFD No. 2022-3 (Legado)
and the Facilities and Incidental Expenses authorized to be financed by the District. The
proposition to be placed on the ballot for Improvement Area No. 2 is attached hereto as
Exhibit A. Following certification of landowner votes in favor of the adoption of the
Amended Improvement Area No. 2 Rate and Method and the Facilities and Incidental
Expenses authorized to be financed by the District, the District shall record an amended
notice of special tax lien for Improvement Area No. 2 and a notice of cessation of the
special tax of Improvement Area No. 2 with respect to the property that is removed
therefrom.
An election is hereby called within the boundaries of Improvement Area No. 3 on the
proposition of approving the Improvement Area No. 3 Rate and Method and the Facilities
and Incidental Expenses authorized to be financed by the District and the incurring of
bonded indebtedness of the District for Improvement Area No. 3. The propositions to be
placed on the ballot for Improvement Area No. 3 is attached hereto as Exhibit B. Following
certification of landowner votes in favor of the adoption of the Improvement Area No. 3
Rate and Method and the Facilities and Incidental Expenses authorized to be financed by
the District and the incurring of bonded indebtedness for Improvement Area No. 3, the
District shall record a notice of special tax lien for Improvement Area No. 3.
Section 8. The date of the foregoing elections for Improvement Area No. 2 and Improvement Area
No. 3 shall be November 6, 2024, or such later date as is consented to by the City Clerk
and the landowners within Improvement Area No. 2 and Improvement Area No. 3. The
City Clerk shall conduct the election. Except as otherwise provided by the Act, the
elections shall be conducted by personally delivered or mailed ballots and, except as
otherwise provided by the Act, the elections shall be conducted in accordance with the
provisions of law regulating elections of the City insofar as such provisions are determined
by the City Clerk to be applicable.
Section 9. It is hereby found that there are no registered voters within the territory of Improvement
Area No. 2, and, pursuant to Section 53326 of the Act, each landowner who is the owner
of record on the date hereof, or the authorized representative thereof, shall have one vote
for each acre or portion thereof that he or she owns within Improvement Area No. 2.
It is hereby found that there are no registered voters within the territory of Improvement
Area No. 3, and, pursuant to Section 53326 of the Act, each landowner who is the owner
of record on the date hereof, or the authorized representative thereof, shall have one vote
for each acre or portion thereof that he or she owns within Improvement Area No. 3.
Section 10. This Resolution shall be effective upon its adoption.
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Resolution Approving Change Proceedings for CFD No. 2022-3 (Legado)
PASSED, APPROVED AND ADOPTED this the 61' day of November, 2024.
V,
Bill Zimme an, ayor
Attest:
/4 **,-
C�' U-� I
Stephanie Roseen, Acting City Clerk
Approved as to form:
EXHIBIT A
SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2022-3 OF THE
CITY OF MENIFEE (LEGADO)
(IMPROVEMENT AREA NO. 2)
SPECIAL ELECTION
November 6, 2024
This ballot represents _ votes.
To vote, write or stamp a cross ("+" or "X") in the voting square after the word "YES" or after the
word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the
ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Menifee and
obtain another.
PROPOSITION A: Shall a special tax with an Amended Improvement YES ❑
Area No. 2 Rate and Method of Apportionment as provided in Exhibit
A to Resolution No. 24-_ of the City Council of the City of Menifee for NO ❑
Improvement Area No. 2 of Community Facilities District No. 2022-3
(Legado) of the City of Menifee (the "District") be levied to pay for the
Facilities, Incidental Expenses and other purposes described in
Resolution No. 22-1222, including the payment of the principal of and
interest on bonds issued to finance the Facilities and Incidental
Expenses for the District?
EXH I BIT A
EXHIBIT B
SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2022-3 OF THE
CITY OF MENIFEE (LEGADO)
(IMPROVEMENT AREA NO. 3)
SPECIAL ELECTION
November 6, 2024
This ballot represents _ votes.
To vote, write or stamp a cross ("+" or "X") in the voting square after the word "YES" or after the
word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the
ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Menifee and
obtain another.
PROPOSITION B: Shall a special tax with a Improvement Area No. 3 YES ❑
Rate and Method of Apportionment as provided in Exhibit C to
Resolution No. 24-—
of the City Council of the City of Menifee for NO ElImprovement Area No. 3 of Community Facilities District No. 2022-3
(Legado) of the City of Menifee (the "District") be levied to pay for the
Facilities, Incidental Expenses and other purposes described in
Resolution No. 22-1222, including the payment of the principal of and
interest on bonds issued to finance the Facilities and Incidental
Expenses for the District?
PROPOSITION C: Shall the District incur an indebtedness and issue YES ❑
bonds in the maximum principal amount of $28,000,000 for
Improvement Area No. 3 therein with interest at a rate or rates not to NO ❑
exceed the maximum interest rate permitted by law, to finance the
Facilities and the Incidental Expenses described in Resolution No. 22-
1222 of the City Council of the City of Menifee?
EXHIBIT B
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF MENIFEE )
I, Stephanie Roseen, Acting City Clerk of the City of Menifee, do hereby certify that the
foregoing City Council Resolution No. 24-1507 was duly adopted by the City Council of the City
of Menifee at a meeting thereof held on the 6th Day of November 2024 by the following vote:
Ayes:
Estrada, Deines, Karwin, Sobek, Zimmerman
Noes:
None
Absent:
None
Abstain:
None
pC-, KMI.
' • - • City Clerk