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Home My WebLink About8 Gray's Crossing Update Power Point WORKSHOP ITEM #8Gray’s Crossing CFD UpdateGray’s Crossing CFD Update March 15, 2017 Gray’s Crossing Update responsibilities of each partyOutlines the plan to stabilize the CFD and identifies roles and •Among the District, the CFD, and two developers•Board approved the Gray’s Crossing Memorandum of Understanding•January 2017•determinations (53340(f) California Government Code) Permitting waiver of redemption penalties under certain findings and •25-Board adopted Resolution 2016•all delinquent parcels (required by covenant) Authorized staff and special counsel to proceed with foreclosure on •23-Board adopted Resolution 2016•October 2016•BACKGROUND / HISTORY Gray’s Crossing Update NEW INFORMATION Overview of the current development concept and major considerations•CFD formation –Next steps •Two themes•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION To include the three parcels of interest•BoundariesC.Levy of taxes on taxable property within the boundaries of the CFD •Formation of new CFD•Proceedings requestedB.Gray’s Station LLC and LDK GC81 LLC•PetitionersA.Petition is anticipated to include many sections: •Process is to be streamlined as only a few property owners are involved•Petition process requires a public hearing •Requires owners (parcels of interest) to petition for such formation •Efforts beginning to form CFD •CFD formation –Next steps •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Pay costs of administering the CFD and the bonds4.Finance costs of issuing the bonds and provide a reserve fund3.infrastructure (no new infrastructure currently anticipated)Finance any additional amounts that may be necessary for 2.may be levied on the properties joining the new CFDPrepay in full special taxes that have been levied and in the future 1.Purpose D.Petition is anticipated to include many sections (Continued): •CFD formation –Next steps •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Or as soon thereafter as is possible•conducts the public hearingssame meeting of the Board as the meeting at which the Board Ballots be opened and canvassed and the results certified at the 3.delivered ballots-Be conducted by TDPUD using mailed or hand2.appropriations limit Authorize levy of special taxes, issuance of bonds, and establish •Special elections to be consolidated into a single election1.ElectionsE.Petition is anticipated to include many sections (Continued): •CFD formation –Next steps •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Provides the address of each of the petitioners•Mailing Address G.requirements as to the form of the ballotperiods, ballot analysis and arguments for the election, and all Petitioners are expected to waive all notices of elections; waiting •those required by the Act)Petitioners are expected to waive all notices of hearings (other than •WaiverF.Petition is anticipated to include many sections (Continued): •CFD formation –Next steps •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION“Assessment District” like approach •••Becoming increasingly likely•Single developer results in more flexibility of the RMA •Could take one of several forms, depends on future ownership •Other legal / financial information relevant to administration•Accounting of the debt to be issued •Instructions for levy•The “what and how” of the special tax levy •must accompany the petition(RMA) A Rate and Method of Apportionment •CFD formation –Next steps •Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Parcel DParcel FCottages Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION To provide the local’s restricted housing on other parcels•Necessary to balance the economics •Necessary due to higher lien of Special Taxes•No market restrictions •end single family homes-49 smaller lot size higher–Parcel F •59 restricted to locals only (over 66%!), likely mid $400’s•89 Smaller Footprint, affordable by design homes–The Cottages •30 restricted to locals only, likely mid $300’s•10 income restricted •40 Townhomes 100% for locals / workforce–Parcel D •current expectation: –Concept is constantly evolving •Balance of price vs. quality•Create a nice, livable community –Quality new construction •Development Concept•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION for illustrative purposes only –Conceptual designs Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION 21% of unmet demand in the 80% to 120% AFMI range •37% of unmet housing demand is for families with >120% AFMI •% of unmet demand falls into the range of this project58•tudies support this development conceptsousing hRecent •new condition-likeMany are ~30 years old and require significant investment to return to •Current market comps for similar size homes are similar, or higher •Diversified housing opportunity •Development Concept•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Anticipated to align very well to current development concept•Could provide up to 10% down for qualifying individuals •Interest building in a possible down payment assistance program •profits -representatives of local nonTo maximize the community benefit, staff has also been meeting with •Development Concept•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION need an efficient exchange process –Time is limited •Then start the formal application process•to establish the conceptual framework TDPUD, Town of Truckee, and Developers must proactively work together •Establishment of a new development agreement (if necessary)•Dissolution of the former (defaulted) development agreement•Alternate Equivalent Proposal process •find that this concept meets development code requirements opportunity to reality, the most critical need is for the Town of Truckee to In order to successfully stabilize the CFD and bring this housing •Development Concept•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION All single family parcels have since sold to individual owners •No opportunity today to ‘subsidize’ the three parcels •Each property is massively burdened with debt•The original developer is no longer anticipated to develop•The original developer filed bankruptcy •Development didn’t commence as planned •provided such opportunity to restrict these parcels… however: Reasonable to assume the economics of the entire development •income restricted Allocated a significant portion (over 60%) of units on each parcel as •Truckee Initial developer executed a development agreement(s) with the Town of •It’s important to understand the history •Development Concept•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Over 50% for locals in an ideal location•1600sf size –Provides new housing stock in the 1200sf •Concept meets housing study majority needs•Must balance economic reality with the best possible housing outcome •Exceedingly unlikely, nor necessarily the best use of subsidy•require $15M of subsidy To actually meet the old agreement (based on current estimates) would •goal is to meet the intent–original agreement a decade ago As a result, the development concept is not going to be “one for one” to the •Must support the lien of the CFD’s bonds•Must be economically feasible•Today, the three opportunity parcels must “stand on their own feet”•Development Concept•Gray’s Crossing UpdateGray’s Crossing Update NEW INFORMATION Development could possibly commence–2018 •Call 2004 and 2005 Special Tax Bonds–September 2017 •Final RMA; price and sell bonds, close transaction –August 2017 •StatementConsider Resolution, documents, and Preliminary Official –July 2017 •Election and formation of the new CFD–June 2017 •CFD; schedule public hearing Consider approval of the resolution of intention to form the –May 2017 •Actions will be brought forward for Board consideration at future meetings•Truckee, the District will continue parallel effortsDuring the ongoing process between developers and the Town of •Gray’s Crossing UpdateGray’s Crossing Update FISCAL IMPACT the DistrictThere is no direct fiscal impact associated with this workshop item to •The CFD is a separate legal and fiscal entity from the District •Gray’s Crossing UpdateGray’s Crossing Update RECOMMENDATION File this report and provide input to staff•Gray’s Crossing UpdateGray’s Crossing Update