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HomeMy WebLinkAbout2022-03-08 - RC EIFD PFA Agenda PacketPage 1 RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY AGENDA Special Meeting March 8, 2022 – 6:00 PM Council Chambers 10500 Civic Center Drive Rancho Cucamonga, CA 91730 A.CALL TO ORDER Pledge of Allegiance Roll Call B.ANNOUNCEMENT / PRESENTATIONS B1. Administration of Oath of Office to the Rancho Cucamonga EIFD Public Financing Authority Board Members. C.ITEMS FOR DISCUSSION C1. Consideration of Adoption of Bylaws, and Establishing the Time and Place of Regular Meetings. C2. Overview of the Enhanced Infrastructure Financing District. (Verbal Report) C3. Consideration to Direct the Preparation of the Infrastructure Financing Plan and Overview of the Infrastructure Financing Plan Adoption Schedule. D.PUBLIC COMMMUNICATIONS This is the time set aside for anyone wishing to address the Authority on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion at a later date. Any person desiring to speak should fill out a "Speaker Request Form" and give it to the Clerk before that portion of the agenda is called. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Chair, depending upon the number of individuals desiring to speak. E.ADJOURNMENT CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least seventy-two (72) hours prior to the meeting per Government Code 54954.2 at City Hall: 10500 Civic Center Drive, Ran cho Cucamonga, California and on the City's website. LINDA A. TROYAN, MMC CITY CLERK SERVICES DIRECTOR If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at (909) 774-2023. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired DATE: March 8, 2022 TO: Chairman and Board Members of the Rancho Cucamonga EIFD Public Financing Authority FROM: Lori Sassoon, Deputy City Manager/Administrative Services Noah Daniels, Finance Director SUBJECT: Consideration to Approve PFA Bylaws. RECOMMENDATION: Staff recommends that the Rancho Cucamonga EIFD Public Financing Authority (PFA) adopt the proposed bylaws. BACKGROUND: On February 16, 2022, the City Council adopted a Resolution of Intention to initiate the proceedings to form the Rancho Cucamonga Enhanced Infrastructure Financing District (EIFD) and established the PFA (Resolution No. 2022-029). ANALYSIS: The Rancho Cucamonga EIFD is expected to be fully formed by late summer 2022. Once formed, the Rancho Cucamonga EIFD would legally constitute a local government entity separate and distinct from the City and the Fire District, subject to various laws of the state of California. To effectuate the orderly conduct of Board business, a set of bylaws has been drafted and is recommended for approval (Attachment 1). The proposed bylaws establish rules pertaining to PFA membership roles, regular meetings, officer duties, and related matters. You will note that the PFA board will have four regular meetings scheduled per year; however, it is likely that in some years, only one annual meeting will be held. Because debt can only be issued at a regular meeting of the PFA, it is necessary to formerly establish quarterly regular meetings to facilitate future debt issuance at a later time. FISCAL IMPACT: None. ATTACHMENTS: Attachment 1 – Bylaws of the Rancho Cucamonga EIFD Public Financing Authority City of Rancho Cucamonga Rancho Cucamonga EIFD Public Financing Authority 11231-0001\2624229v1.doc Attachment 1 BYLAWS OF THE RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY ARTICLE I - THE PUBLIC FINANCING AUTHORITY Section 1. Name of Public Financing Authority. The name of the Public Financing Authority of the Rancho Cucamonga Enhanced Infrastructure Financing District (EIFD) shall be the “Rancho Cucamonga EIFD Public Financing Authority.” Section 2. Participating Entities. The initial taxing entities participating in the Public Financing Authority are the City of Rancho Cucamonga and the Rancho Cucamonga Fire Protection District. Section 3. Purpose. The Public Financing Authority is a body formed and operating under Government Code Section 53398.50 et seq. The primary purpose of the Authority is to accelerate the financing of authorized public improvements. Section 4. Office. The office of the Public Financing Authority shall be at Rancho Cucamonga City Hall, 10500 Civic Center Drive, Rancho Cucamonga, California. ARTICLE II - GOVERNING BODY Section 1. Membership. The members and alternate members of the governing body of the Public Financing Authority shall be duly appointed by the taxing entities participating in the Public Financing Authority, which governing body shall be known as the Board of Directors. As of the initial adoption of these bylaws, the Board of Directors is comprised of two members of the City of Rancho Cucamonga City Council, one member of the Rancho Cucamonga Fire Protection District Board of Directors, and two public members jointly selected by the City Council and Board. Section 2. Alternate Member. In the absence of a member’s attendance at a meeting of the Board of Directors, an alternate member appointed by a participating taxing entity shall have all of the rights and privileges as a member during such meeting. Section 3. Additional Participating Entities. The composition of the Board of Directors shall be amended if an additional taxing entity agrees to participate in the EIFD. Section 4. Board Authority. The Board of Directors shall be imbued with all powers and authority as specified in California Government Code Section 53398.50 et seq and any other applicable statutes or regulations which may be adopted. Section 5. Avoiding Conflicts of Interest. Each member of the Board of Directors shall comply with the reporting requirements of the Political Reform Act, Government Code Section 81000 et seq and its implementing regulations as adopted by the Fair Political Practices Commission. -2- 11231-0001\2624229v1.doc Attachment 1 ARTICLE III - OFFICERS Section 1. Officers. The officers of the Public Financing Authority shall be a Chair, Vice-Chair, and Secretary. Section 2. Chair. The Chair shall be the member of the Board of Directors who is the then current Mayor of the City of Rancho Cucamonga. The Chair shall preside at all meetings of the Public Financing Authority. The Chair shall sign all resolutions, contracts, other instruments made by the Public Financing Authority. Section 3. Vice-Chair. The Vice-Chair shall be the member of the Board of Directors who is the representative of the Rancho Cucamonga Fire Protection District. The Vice-Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. Section 4. Secretary. The Secretary shall be the then current City Clerk of the City of Rancho Cucamonga or, in his/her absence, the City’s Director of City Clerk Services. The Secretary shall keep the records of the Public Financing Authority, shall act as Secretary of the meetings of the Board of Directors and record all votes, and shall keep a record of the proceedings of the Public Financing Authority in the form of minutes to be kept for such purpose, and shall perform all duties incident to the office of Secretary. The Secretary may attest to signatures of other officers of the Public Financing Authority. Section 5. Executive Director. The Executive Director shall be the then current City Manager of the City of Rancho Cucamonga. The Executive Director and/or his/her designee(s) shall conduct day-to-day administration of the Public Financing Authority's business and affairs, subject to the direction of the Board of Directors. Section 6. Additional Duties. The officers of the Public Financing Authority shall perform such other duties and functions as may from time to time be required by the Public Financing Authority or these By-Laws or by resolution, rules and regulations or by motion of the Board of Directors. ARTICLE IV - MEETINGS Section 1. Regular Meetings. A regular meeting of the Board of Directors shall be held at the first Tuesday of the months of February, May, August, and November at 6:00 pm. Section 2. Location of Meetings. All meetings of the Board of Directors shall be held in the Council Chambers of Rancho Cucamonga City Hall. Section 3. Applicability of Ralph M. Brown Act. Meetings of the Public Financing Authority shall be held, notice given and the business of the Public Financing Authority conducted, all as provided in the Ralph M. Brown Act, being California Government Code Section 54950, et seq. -3- 11231-0001\2624229v1.doc Attachment 1 Section 4. Quorum. Three members of the Board of Directors shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. Action may be taken by the Board of Directors upon a vote of a majority of a quorum, unless a higher vote is required by law. Section 5. Manner of Voting. The manner of voting on resolutions and on other matters shall be as prescribed by the Chair. Section 6. Parliamentary Procedure. Except as provided herein, other rules adopted by the Board and applicable provisions of state law, the procedures of the Board will be governed by the latest revised edition of Robert’s Rules of Order. ARTICLE V - AMENDMENTS Section 1. Amendments to Bylaws. The Bylaws of the Public Financing Authority may be amended by a majority vote of the Public Financing Authority Board of Directors. RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY March 8, 2022 C1. Consideration of Adoption of Bylaws, and Establishing the Time and Place of Regular Meetings. C1. Adoption of Bylaws •Officers: Chair –Current Mayor of the City of Rancho Cucamonga Vice -Chair –Member of the Rancho Cucamonga Fire Protection District Board Secretary –City Clerk or, in absence, City’s Director of City Clerk Services. Executive Director –Current City Manager •Brown Act applies •A regular meeting are the first Tuesday of the months of February, May, August, and November at 6:00 pm in the Council Chambers of Rancho Cucamonga City Hall. C1. Adoption of Bylaws Staff recom m ends that the Rancho Cucamonga EIFD Public Financing Authority adopt the proposed bylaws.​ C2. Overview of the Enhanced Infrastructure Financing District (Joe Dieguez, Kosmont Companies) Prepared by: Kosmont Companies Enhanced Infrastructure Financing District (EIFD) Introductory Presentation to the Public Financing Authority (PFA) March 8, 2022 Executive Summary Communicating in a Digital World 7 •Rancho Cucamonga has significant potential for new private sector investment and development of regional significance (~$5+ billion) over the next 5-20 years across multiple opportunity site areas in the City (downtown/TOD area, eastern industrial area, other) •Investments in critical infrastructure are needed to support new development, such as parking and transportation connectivity infrastructure and related public improvements •An EIFD was evaluated by staff and consultants as a critical tool to address infrastructure funding needs by capturing value from future development in the form of future property tax increment •In February 2022, City Council adopted a Resolution of Intention to form the EIFD and has established this PFA Board to govern and manage EIFD formation and future operations •The purpose of today’s meeting is to provide the PFA with a general overview of EIFD, answer questions, and direct the preparation of the governing Infrastructure Financing Plan (IFP) •After today’s hearing, the draft IFP will be presented at a PFA public meeting, and then reviewed over a series of three PFA public hearings, and will also be considered for approval separately by the City Council prior to EIFD formation (potential County participation and approval in current or later year) 8 $0M $100M $200M $300M $400M $500M $600M $700M 0 5 10 15 20 25 30 35 40 45 Baseline A/V Incremental Growth of Existing A/V Incremental A/V from New Development Years from District Formation Assessed Value (A/V) within TIF District Boundaries Increment Available to TIF District Period of New Development Note: Illustrative. Conservative 2% growth of existing assessed value (A/V) shown; does not include mark-to-market increases associated with property sales. Tax Increment Mechanics Illustrative EIFD Fundamentals Communicating in a Digital World 9 45 years from first bond issuance; long-term committed revenues; districts can be formed in 12-18 monthsLong Term Districts Public Financing Authority (PFA) led by city or county implements Infrastructure Financing Plan (IFP) –IFP is the investment plan of the EIFD, managed by the PFAGovernance Mandatory public hearings for formation (includes protest opportunity); no public vote to issue debtApprovals EIFD project areas do not have to be contiguous,allowing them to target specific sites / areas and making them compatible with other zoning / entitlement strategiesNon-contiguous Areas Any property with useful life of 15+ years & of communitywide significance; purchase, construction, expansion, improvement, seismic retrofit, rehabilitation, and maintenanceEligible Projects Does NOT increase property taxes Types of Projects EIFD Can Fund Partial List 10 Roadway / Parking / Transit Brownfield Remediation Water / Sewer / Storm / Flood Parks / Open Space / Recreation Childcare Facilities & Libraries Affordable Housing Broadband Small Business / Nonprofit Facilities Wildfire Prevention / Other Climate Change Response Why are Public Agencies Authorizing EIFDs? Communicating in a Digital World 11 1.Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements 2.Ability to attract additional funds (“OPM”)–tax increment from other entities (county, special districts), federal / state grants / loans (e.g. for TOD, water, housing, parks, remediation) 3.Commitment of future revenues (versus existing revenues) to catalyze economic development that would not occur as quickly or intensely but for the TIF commitment​ EIFDs in Progress Statewide (Partial List) 12 Fully Formed In Formation Process Under Evaluation Jurisdiction Purpose Azusa Housing and transit-supportive infrastructure Brentwood Housing and transit-supportive infrastructure Buena Park Mall reimagination, housing-supportive infrastructure Carson + L.A. County Remediation, housing infrastructure, recreation Coachella Valley Association of Govts (CVAG) Cities Housing and transit-supportive infrastructure Covina Housing and transit-supportive infrastructure El Cajon Housing and transit-supportive infrastructure El Segundo + L.A. County Various infrastructure, regional connectivity Fairfield Housing and transit-supportive infrastructure Fresno Housing and transit-supportive infrastructure Fresno County Industrial and commercial supportive infrastructure Humboldt County Mixed-use & energy supportive infrastructure Indian Wells Housing and tourism-supportive infrastructure Imperial County Housing and greenfield infrastructure La Verne + L.A. County Housing and transit-supportive infrastructure Long Beach (Multiple Districts)Housing and transit-supportive infrastructure Los Angeles (Downtown, San Pedro)Housing and transit-supportive infrastructure Los Angeles County Uninc. West Carson Housing / bio-science / tech infrastructure Madera County (Two Districts)Greenfield infrastructure (water / sewer) Modesto + Stanislaus County Housing, transit, recreation-supportive infrastructure Mount Shasta + Siskoyou County Rural Brownfield site mixed-use infrastructure Napa Housing and transit-supportive infrastructure Ontario Housing and transit-supportive infrastructure Palmdale + L.A. County Housing and transit-supportive infrastructure Pittsburg Housing and transit-supportive infrastructure Placentia + Orange County Housing and transit-supportive infrastructure Redondo Beach + L.A. County Parks / open space, recreation infrastructure Riverside Housing and transit-supportive infrastructure Sacramento County (Unincorporated)Industrial / commercial supportive infrastructure San Bernardino County (Unincorporated)Transit-supportive infrastructure San Jose Housing and transit-supportive infrastructure Sanger Housing and commercial supportive infrastructure Santa Ana Housing and transit-supportive infrastructure South Gate Housing and transit-supportive infrastructure West Santa Ana Branch Transit Corridor Cities Housing and transit-supportive infrastructure Yucaipa Housing and transit-supportive infrastructure Preliminary EIFD Boundaries 13 Source:City of Rancho Cucamonga, San Bernardino County Auditor- Controller (2022) •Approx.1,500 acres (11.8% of Citywide acreage) •Approx.$729M in existing assessed value (2.7% of Citywide A/V) •Strategically defined to capture value from potential future development and support general fund solvency Proposed EIFD Parcels City Limits 14 Future Development Assumptions Absorption Assumed over 5-20 Years Note: AV at buildout values in current 2022 dollars.. Source:City of Rancho Cucamonga, CoStar (2022) Area # SF or Units Estimated AV Factor Estimated Total AV at Buildout For -sale Residential 1,514 units $618,000 per unit $936 million Rental Residential 10,253 units $317,000 per unit $3.255 billion Hotel 171 rooms $162,000 per room $28 million Commercial / Retail 922,000 SF $274 PSF $253 million Office 222,000 SF $211 PSF $47 million Industrial 6,272,400 SF $172 PSF $1.079 billion Total New Development Assumed within EIFD Study Area $5.597 billion 15 Source:City of Rancho Cucamonga (2022) Targeted Infrastructure Improvements •Potential projects were identified based on alignment of timing of funding needs and timing of EIFD funding capacity •Projects that would catalyze and support future development while delivering significant communitywide benefits Potential Priority Projects Estimated Cost Estimated Timing 1) Parking infrastructure and related improvements between Haven Avenue and Day Creek Boulevard along Foothill Corridor $20-40M 2028-2032 2) Transportation Connectivity Improvements linking Cucamonga Station and Haven / Arrow focus area $40-60M 2028-2032 Estimated Total Priority Projects $60-100M Financing Section 16 •City staff and consultants are still evaluating several scenarios of potential revenue contribution •Strategy is to generate sufficient EIFD funding capacity while still delivering significant positive net fiscal impact (“return on investment”) to the General Fund Regional and Communitywide Significance 17 •Implementation of essential infrastructure improvements of communitywide and regional benefit •Social impacts: Quality of life improvement, environmental sustainability •Housing: 11,700+ units •Economic benefits: 7,440+permanent, direct jobs from operation; additional 2,500+ indirect and induced permanent jobs, supporting $445M+in ongoing annual wages in the County 53,000+temporary construction-related jobs*, supporting $4.4B in temporary wages in the County •Acceleration of development and related fiscal revenues: Final contribution scenario still being evaluated Strategy will be to accelerate and generate significant positive City General Fund net fiscal impact versus “no-EIFD” scenario (net of City contribution to EIFD and net of City service costs ) * 53,000+ construction job-years, where a construction job-year is defined as one-year of employment for one construction-related worker 18 Utilizing the EIFD to Attract other Public Funding Federal & State Sources State grant and loan programs (AHSC, IIG, TCC, ATP, HSIP) Prop 1 water/sewer funds Prop 68 open space funds Federal EDA / DOT / EPA funding Other Potential Funding Sources Development Agreement contributions Complementary districts (e.g., CFD) Private investment EIFD will be leveraged to seek grant funding and additional complementary funding (including potential partial funding match from County of S.B.) 19 THANK YOU Questions? Kosmont Companies 1601 N. Sepulveda Blvd. #382 Manhattan Beach, CA 90266 Ph: (424) 297-1070 | Fax: (424) 286-4632 www.kosmont.com Prepared by: Kosmont Companies Enhanced Infrastructure Financing District (EIFD) Introductory Presentation to the Public Financing Authority (PFA) March 8, 2022 Executive Summary Communicating in a Digital World 2 •Rancho Cucamonga has significant potential for new private sector investment and development of regional significance (~$5+ billion) over the next 5-20 years across multiple opportunity site areas in the City (downtown/TOD area, eastern industrial area, other) •Investments in critical infrastructure are needed to support new development, such as parking and transportation connectivity infrastructure and related public improvements •An EIFD was evaluated by staff and consultants as a critical tool to address infrastructure funding needs by capturing value from future development in the form of future property tax increment •In February 2022, City Council adopted a Resolution of Intention to form the EIFD and has established this PFA Board to govern and manage EIFD formation and future operations •The purpose of today’s meeting is to provide the PFA with a general overview of EIFD, answer questions, and direct the preparation of the governing Infrastructure Financing Plan (IFP) •After today’s hearing, the draft IFP will be presented at a PFA public meeting, and then reviewed over a series of three PFA public hearings, and will also be considered for approval separately by the City Council prior to EIFD formation (potential County participation and approval in current or later year) 3 $0M $100M $200M $300M $400M $500M $600M $700M 0 5 10 15 20 25 30 35 40 45 Baseline A/V Incremental Growth of Existing A/V Incremental A/V from New Development Years from District Formation Assessed Value (A/V) within TIF District Boundaries Increment Available to TIF District Period of New Development Note: Illustrative. Conservative 2% growth of existing assessed value (A/V) shown; does not include mark-to-market increases associated with property sales. Tax Increment Mechanics Illustrative EIFD Fundamentals Communicating in a Digital World 4 45 years from first bond issuance; long-term committed revenues; districts can be formed in 12-18 months Long Term Districts Public Financing Authority (PFA) led by city or county implements Infrastructure Financing Plan (IFP) –IFP is the investment plan of the EIFD, managed by the PFAGovernance Mandatory public hearings for formation (includes protest opportunity); no public vote to issue debtApprovals EIFD project areas do not have to be contiguous,allowing them to target specific sites / areas and making them compatible with other zoning / entitlement strategies Non-contiguous Areas Any property with useful life of 15+ years & of communitywide significance; purchase, construction, expansion, improvement, seismic retrofit, rehabilitation, and maintenance Eligible Projects Does NOT increase property taxes Types of Projects EIFD Can Fund Partial List 5 Roadway / Parking / Transit Brownfield Remediation Water / Sewer / Storm / Flood Parks / Open Space / Recreation Childcare Facilities & Libraries Affordable Housing Broadband Small Business / Nonprofit Facilities Wildfire Prevention / Other Climate Change Response Why are Public Agencies Authorizing EIFDs? Communicating in a Digital World 6 1.Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements 2.Ability to attract additional funds (“OPM”)–tax increment from other entities (county, special districts), federal / state grants / loans (e.g. for TOD, water, housing, parks, remediation) 3.Commitment of future revenues (versus existing revenues) to catalyze economic development that would not occur as quickly or intensely but for the TIF commitment​ EIFDs in Progress Statewide (Partial List) 7 Fully Formed In Formation Process Under Evaluation Jurisdiction Purpose Azusa Housing and transit-supportive infrastructure Brentwood Housing and transit-supportive infrastructure Buena Park Mall reimagination, housing-supportive infrastructure Carson + L.A. County Remediation, housing infrastructure, recreation Coachella Valley Association of Govts (CVAG) Cities Housing and transit-supportive infrastructure Covina Housing and transit-supportive infrastructure El Cajon Housing and transit-supportive infrastructure El Segundo + L.A. County Various infrastructure, regional connectivity Fairfield Housing and transit-supportive infrastructure Fresno Housing and transit-supportive infrastructure Fresno County Industrial and commercial supportive infrastructure Humboldt County Mixed-use & energy supportive infrastructure Indian Wells Housing and tourism-supportive infrastructure Imperial County Housing and greenfield infrastructure La Verne + L.A. County Housing and transit-supportive infrastructure Long Beach (Multiple Districts)Housing and transit-supportive infrastructure Los Angeles (Downtown, San Pedro)Housing and transit-supportive infrastructure Los Angeles County Uninc. West Carson Housing / bio-science / tech infrastructure Madera County (Two Districts)Greenfield infrastructure (water / sewer) Modesto + Stanislaus County Housing, transit, recreation-supportive infrastructure Mount Shasta + Siskoyou County Rural Brownfield site mixed-use infrastructure Napa Housing and transit-supportive infrastructure Ontario Housing and transit-supportive infrastructure Palmdale + L.A. County Housing and transit-supportive infrastructure Pittsburg Housing and transit-supportive infrastructure Placentia + Orange County Housing and transit-supportive infrastructure Redondo Beach + L.A. County Parks / open space, recreation infrastructure Riverside Housing and transit-supportive infrastructure Sacramento County (Unincorporated)Industrial / commercial supportive infrastructure San Bernardino County (Unincorporated)Transit-supportive infrastructure San Jose Housing and transit-supportive infrastructure Sanger Housing and commercial supportive infrastructure Santa Ana Housing and transit-supportive infrastructure South Gate Housing and transit-supportive infrastructure West Santa Ana Branch Transit Corridor Cities Housing and transit-supportive infrastructure Yucaipa Housing and transit-supportive infrastructure Preliminary EIFD Boundaries 8 Source:City of Rancho Cucamonga, San Bernardino County Auditor- Controller (2022) •Approx.1,500 acres (11.8% of Citywide acreage) •Approx.$729M in existing assessed value (2.7% of Citywide A/V) •Strategically defined to capture value from potential future development and support general fund solvency Proposed EIFD Parcels City Limits 9 Future Development Assumptions Absorption Assumed over 5-20 Years Note: AV at buildout values in current 2022 dollars.. Source:City of Rancho Cucamonga, CoStar (2022) Area # SF or Units Estimated AV Factor Estimated Total AV at Buildout For -sale Residential 1,514 units $618,000 per unit $936 million Rental Residential 10,253 units $317,000 per unit $3.255 billion Hotel 171 rooms $162,000 per room $28 million Commercial / Retail 922,000 SF $274 PSF $253 million Office 222,000 SF $211 PSF $47 million Industrial 6,272,400 SF $172 PSF $1.079 billion Total New Development Assumed within EIFD Study Area $5.597 billion 10 Source:City of Rancho Cucamonga (2022) Targeted Infrastructure Improvements •Potential projects were identified based on alignment of timing of funding needs and timing of EIFD funding capacity •Projects that would catalyze and support future development while delivering significant communitywide benefits Potential Priority Projects Estimated Cost Estimated Timing 1) Parking infrastructure and related improvements between Haven Avenue and Day Creek Boulevard along Foothill Corridor $20-40M 2028-2032 2) Transportation Connectivity Improvements linking Cucamonga Station and Haven / Arrow focus area $40-60M 2028-2032 Estimated Total Priority Projects $60-100M Financing Section 11 •City staff and consultants are still evaluating several scenarios of potential revenue contribution •Strategy is to generate sufficient EIFD funding capacity while still delivering significant positive net fiscal impact (“return on investment”) to the General Fund Regional and Communitywide Significance 12 •Implementation of essential infrastructure improvements of communitywide and regional benefit •Social impacts: Quality of life improvement, environmental sustainability •Housing: 11,700+ units •Economic benefits: 7,440+permanent, direct jobs from operation; additional 2,500+ indirect and induced permanent jobs, supporting $445M+in ongoing annual wages in the County 53,000+temporary construction-related jobs*, supporting $4.4B in temporary wages in the County •Acceleration of development and related fiscal revenues: Final contribution scenario still being evaluated Strategy will be to accelerate and generate significant positive City General Fund net fiscal impact versus “no- EIFD” scenario (net of City contribution to EIFD and net of City service costs ) * 53,000+ construction job-years, where a construction job-year is defined as one-year of employment for one construction-related worker 13 Utilizing the EIFD to Attract other Public Funding Federal & State Sources State grant and loan programs (AHSC, IIG, TCC, ATP, HSIP) Prop 1 water/sewer funds Prop 68 open space funds Federal EDA / DOT / EPA funding Other Potential Funding Sources Development Agreement contributions Complementary districts (e.g., CFD) Private investment EIFD will be leveraged to seek grant funding and additional complementary funding (including potential partial funding match from County of S.B.) 14 THANK YOU Questions? Kosmont Companies 1601 N. Sepulveda Blvd. #382 Manhattan Beach, CA 90266 Ph: (424) 297-1070 | Fax: (424) 286-4632 www.kosmont.com Disclaimer 15 The analyses,projections,assumptions,rates of return,and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results .Project pro forma and tax analyses are projections only.Actual results may differ from those expressed in this analysis. Discussions or descriptions of potential financial tools that may be available to the City are included for informational purposes only and are not intended to be to be “advice”within the context of this Analysis. Municipal Advisory activities are conducted through Kosmont Companies’affiliate,Kosmont Transaction Services,which is Registered as a Municipal Advisor with the SEC and MSRB. DATE: March 8, 2022 TO: Chairman and Board Members of the Rancho Cucamonga EIFD Public Financing Authority FROM: Lori Sassoon, Deputy City Manager/Administrative Services Noah Daniels, Finance Director SUBJECT: Consideration to Direct the Preparation of the Infrastructure Financing Plan and Overview of the Infrastructure Financing Plan Adoption Schedule. RECOMMENDATION: Staff recommends that the Rancho Cucamonga EIFD Public Financing Authority (PFA) direct the preparation of the Infrastructure Financing Plan (IFP), designating the Executive Director as the official responsible for preparing the IFP, and receive the overview of the IFP adoption schedule. BACKGROUND: On February 16, 2022, the City Council adopted a Resolution of Intention to initiate the proceedings to form the Rancho Cucamonga Enhanced Infrastructure Financing District (EIFD) and established the PFA (Resolution No. 2022-029). Additionally, on the same date, the Rancho Cucamonga Fire Protection Board of Directors adopted a Resolution to Participate in the EIFD and have membership in the PFA (Resolution No. FD 2022-003). The PFA will serve as the governing board of the EIFD and is comprised initially of two members of the City Council, one member of the Rancho Cucamonga Fire Protection District Board of Directors, and two public members. Alternate PFA members were also be appointed to represent the City Council and/or the Fire Board in the absence of a regular member. If another taxing entity wishes to participate in the EIFD, the PFA membership will be revised to include members from the new taxing entity. In summary, EIFDs aid governments in funding public facilities and other public investments to foster future development and increase property values. By capturing tax increment revenue generated within the district as new development occurs and property values increase over time, like a redevelopment project area, a portion of tax increment revenue is redirected from the taxing entity to the EIFD. Importantly, the establishment of EIFDs does not increase property taxes or any other taxes for landowners within or outside the EIFD boundaries. The EIFD preliminary boundary consists of approximately 1,500 acres of largely undeveloped or undeveloped parcels, with $729 million in existing assessed value (Attachment 1). The proposed public facilities to be financed by the EIFD include public infrastructure investments that support the new General Plan and capitalize on future investment at Cucamonga Station. City of Rancho Cucamonga Rancho Cucamonga EIFD Public Financing Authority Page 2 ANALYSIS: As part of the EIFD formation process, the PFA is required to direct the preparation of an IFP. The IFP is a legal document which describes the EIFD and specific requirements related to financing and implementing goals of the EIFD over the life of the EIFD (45 years from the first debt issuance). The IFP will include the following key components: • A map and legal description of the proposed EIFD; • A description of public facilities proposed for the EIFD, and a finding that such public facilities are of communitywide significance and provide significant benefits to an area larger than the area of the EIFD; • A financing section that addresses the maximum amount of tax increment to be committed to the EIFD, a projection of tax increment revenue expected to be received by the EIFD each year, a limit on the tax increment revenue that may be allocated to the EIFD, and an analysis of the projected fiscal impact to the taxing entities committing tax increment revenue to the EIFD. • The goals the EIFD proposes to achieve for each project to be financed. Upon completion of the draft IFP, it will be distributed to the City Council, Fire Protection Board of Directors, and other interested parties identified in the EIFD Law. In addition, the PFA will hold a public meeting at which PFA staff will present a draft IFP. The PFA will also conduct three public hearings on the formation of the EIFD and, upon the conclusion of the third public hearing, may approve the IFP and officially establish the EIFD. The schedule to adopt the IFP is as follows: Task Target Date Notes PFA meets to review draft IFP April 5, 2022 Presentation to Planning Commission on EIFD and draft IFP April 13, 2022 Statute requires that the Planning Commission be informed about the IFP and review the CEQA documentation PFA holds Public Hearing #1 May 10, 2022 Written and oral comments taken on IFP; no action taken City Council and Fire Board adopt resolutions approving the IFP and contributions of property tax increment May 2022 Must be adopted before Public Hearing #3. Date subject to change if another taxing entity participates in the PFA. PFA holds Public Hearing #2 June 3, 2022 Additional comments taken; PFA takes action to approve, modify, or reject IFP PFA holds Public Hearing #3 and protest proceeding July 8, 2022 If majority protest exists – takes action to terminate EIFD. If no majority protest, PFA can propose adoption of the IFP and form the EIFD Staff files EIFD with BOE per guidelines for Change of Jurisdictional Boundaries August 2022 Pending confirmation of due date by County Page 3 Public information and outreach are also an important part of the EIFD formation process. Work has already begun on various public information materials and a web page that will serve as a resource to interested stakeholders. Landholders and residents within the EIFD boundaries will also receive mailed notification of the process, and public hearings will be advertised extensively. In the event of a majority protest by property owners or residents within the boundaries, the formation proceedings would be discontinued. FISCAL IMPACT: There is no immediate fiscal impact. The fiscal impact will be analyzed as part of the development of the IFP. ATTACHMENTS: Attachment 1 – Preliminary EIFD Boundary Map Preliminary EIFD Boundary Map Attachment 1 Disclaimer 20 The analyses,projections,assumptions,rates of return,and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results.Project pro forma and tax analyses are projections only.Actual results may differ from those expressed in this analysis. Discussions or descriptions of potential financial tools that may be available to the City are included for informational purposes only and are not intended to be to be “advice”within the context of this Analysis. Municipal Advisory activities are conducted through Kosmont Companies’affiliate,Kosmont Transaction Services,which is Registered as a Municipal Advisor with the SEC and MSRB. C3. Consideration to Direct the Preparation of the Infrastructure Financing Plan and Overview of the Infrastructure Financing Plan Adoption Schedule. C3.Direct IFP and Overview of Schedule •EIFD Formation requires the PFA to direct the preparation of the Infrastructure Financing Plan (IFP) •The IFP includes the following: 1.Map and legal description of the EIFD; 2.Description of public facilities for the EIFD; 3.Financing information; and 4.Goals for the EIFD C3.Direct IFP and Overview of Schedule •The Draft IFP will be: 1.Published on the EIFD’s Website (www.cityofrc.us/EIFD); and 2.Transmitted to the appropriate governing bodies. •The Draft IFP will be presented to the PFA on April 5, 2022. Task Target Date Notes ​PFA meets to review draft IFP April 5, 2022 ​Presentation to Planning Commission on EIFD and draft IFP April 13, 2022 Statute requires that the Planning Commission be informed about the IFP and review the CEQA documentation ​PFA holds Public Hearing #1 May 10, 2022 Written and oral comments taken on IFP; no action taken ​City Council and Fire Board adopt resolutions approving the IFP and contributions of property tax increment May 2022 Must be adopted before Public Hearing #3. Date subject to change if another taxing entity participates in the PFA. ​PFA holds Public Hearing #2 June 14, 2022 Additional comments taken; PFA takes action to approve, modify, or reject IFP ​PFA holds Public Hearing #3 and protest proceeding July 19, 2022 If majority protest exists (50% of combined number of landowners and residents) –takes action to terminate EIFD. If no majority protest, PFA can propose adoption of the IFP and form the EIFD Staff files EIFD with BOE per guidelines for Change of Jurisdictional Boundaries August 2022 Pending confirmation of due date by County C3.Direct IFP and Overview of Schedule C3.Direct IFP and Overview of Schedule Staff recom m ends that the Rancho Cucamonga EIFD Public Financing Authority (PFA) direct the preparation of the Infrastructure Financing Plan (IFP), designating the Executive Director as the official responsible for preparing the IFP, and receive the overview of the IFP adoption schedule.