TITLE
Recommendation to adopt Resolution of Consideration to alter the facilities authorized to be financed by Community Facilities District No. 5 (Long Beach Towne Center), and set date of public hearing for Tuesday, March 4, 2008 at 5:00 p.m. (District 5)
DISCUSSION
The Long Beach Municipal Code, Division V, Chapter 3.52, contains the Long Beach Special Tax Financing Improvement Law, which governs the formation by the City Council of community facilities districts. The Special Tax Financing Improvement Law, which is broader than the State's Mello Roos Law, provides a mechanism to form community facilities districts and to finance public capital facilities and services. Once formed, a community facilities district can finance facilities and provide services through payment of a special tax levied against the owners of land in the community facilities district. These special taxes are then used to make bond payments.
In 1999, under the provisions of the Special Tax Financing Improvement Law, the City Council formed Community Facilities District NO.5 (Long Beach Towne Center) of the City of Long Beach (CFD 5) to provide a means to finance public improvements in connection with the development of the Towne Center Shopping facility. CFD 5 is authorized to levy a special tax on the leasehold interest of the shopping center owner in the land on which the shopping center is located, and the revenues from that special tax have been used to pay the debt service on $15,385,000 of bonds issued in May of 2000 by the City for CFD 5 to finance public improvements required for the development of the shopping center.
Due to interest rates in the current public debt market, City Staff have determined that the City can issue bonds for CFD 5 (the "Refunding Bonds") to refund the outstanding bonds issued in 2000, as well as to provide funds to finance additional public improvements, without an increase in the annual debt service on the bonded indebtedness of the City for CFD 5...
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