HomeMy WebLinkAbout17 Power Point Gray's Crossing MOU APN 043-010-007-000 (2)• In 2004 and 2005, the Truckee Donner Public Utility District
(TDPUD) Community Facilities District (CFD) No. 04-1 (Grays
Crossing) issued special tax bonds (Bonds) totaling $34.5
million
• Bonds issued to fund public infrastructure improvements
specific to the Gray's Crossing development
• The CFD's bond debt is repaid by a Mello -Roos special tax
assessment. The tax is applied only to the 407 parcel owners of
the CFD.
• The vast majority of 407 parcels in the CFD have been
paying their respective annual special tax amounts and
are current
• Three undeveloped parcels have significant installment
delinquency amounts and have incurred significant
penalties and interest charges
Current
Owner
SIDDIQUI
SIDDIQUI
DK ALVISO
Special Tax Installment
Delinquent Amount
$1,931,901
$ 933,379
$1,585,166
Above dollar amounts exclude 2021/2022 special tax assessment and penalties
and interest charges, each over approximately the last 13 years.
DK ALVISO 043-010-007-000 Current Delinquency Amounts
$1,585,166 -Special tax assessments (2010-2021)
$ 121,448 -Special tax assessment (2022)(tax year 2021/2022)
$1,706,214 -Special tax assessments due (sub -total)
$ 158,517 —Penalties (2010-2021) (no penalty to date on 21/22)
• The current delinquency amounts owed for APN create a
significant economic hurdle to enable development of
the parcel
• Paradigm8, a developer, has interest in purchase of the
parcel, if the current delinquency amount owed can be
reduced
• Paradigm8 has presented the CFD (to District as
administrator of CFD) a Memorandum of Understanding
• The MOU in essence request in exchange for payment of
Installment Amounts past due in full, the CFD waive all
accrued Penalties and Interest to -date.
• The waiver of current penalty and interest amounts due
is in the best interest of the owners of the bonds and the
CFD
• Cures the special tax delinquency
• Facilitates development of the parcel thereby reducing
the likelihood of future special tax delinquencies
• The CFD's
legal council,
Stradling Yocca
Carlson &
Rauth, has
reviewed the
MOU presented
by Paradigm8
• Council's markup edits are included in the MOU,
Attachment A
• Council's John Murphy is participating in today's
agenda topic and available for questions
• There is no financial impact for Truckee Donner Public
Utility District.
• For the CFD, receiving the Installment Amount of
$1,706,214.38 would increase cash for the CFD,
replenishing the Reserve balance, and decreases tax
accounts receivable.
• For the CFD, billed but not collected Penalties of
$158,517 and Interest of approximately $1.7 million
would not be collected
• Probability of collecting said amounts with current or
a future owner are considered very low.
• Penalties and Interest amounts are cash basis
• accordingly no financial impact to the CFD's current
financials statements
Authorize the General Manager to execute the
Memorandum of Understanding (MOU) regarding APN#
043-010-007-000 as revised (attachment 1); accepting
full payment for all installment special tax amounts past
due, in exchange for waiving current Penalty and Interest
amounts due.