1 00:00:00,000 --> 00:00:06,000 I suspend our Town Council meeting and commence with our Rancho Cerrita Community Facilities District meeting. 2 00:00:06,000 --> 00:00:10,000 Hereby call this meeting to order, and Madam Clerk may have a roll. 3 00:00:10,000 --> 00:00:13,000 Board Member Braco. 4 00:00:13,000 --> 00:00:14,000 Here. 5 00:00:14,000 --> 00:00:15,000 Board Member Davis. 6 00:00:15,000 --> 00:00:16,000 Here. 7 00:00:16,000 --> 00:00:17,000 Board Member Hicks. 8 00:00:17,000 --> 00:00:18,000 Here. 9 00:00:18,000 --> 00:00:19,000 Board Member Luss. 10 00:00:19,000 --> 00:00:20,000 Here. 11 00:00:20,000 --> 00:00:21,000 Board Member Morales. 12 00:00:21,000 --> 00:00:22,000 Here. 13 00:00:22,000 --> 00:00:23,000 Vice Chairperson Egber. 14 00:00:23,000 --> 00:00:24,000 Here. 15 00:00:24,000 --> 00:00:25,000 Chairperson Murphy. 16 00:00:25,000 --> 00:00:26,000 Here. 17 00:00:26,000 --> 00:00:27,000 Quorum present. 18 00:00:27,000 --> 00:00:28,000 Thank you. 19 00:00:28,000 --> 00:00:33,000 The public is invited to address the District Board on any issue which tonight's consent agenda 20 00:00:33,000 --> 00:00:39,000 or any issue which the District Board can lawfully act upon at a future meeting pursuant to Arizona Open Meeting Laws. 21 00:00:39,000 --> 00:00:44,000 The District Board may not discuss items, but individual members of the District Board may respond to criticism 22 00:00:44,000 --> 00:00:48,000 made by those who have addressed the District Board, may ask staff to review the matter, 23 00:00:48,000 --> 00:00:51,000 and may ask the matter to be placed on a future agenda. 24 00:00:51,000 --> 00:00:56,000 I don't have any call to the public cards for the Rancho Cerrita Community Facilities District. 25 00:00:56,000 --> 00:00:59,000 If I'd like to address the Board, this would be the time. 26 00:00:59,000 --> 00:01:04,000 Seeing no movement, I will close the call to the public and move to item number four, 27 00:01:04,000 --> 00:01:07,000 which is the Consent Agenda and their chain of motion at this time. 28 00:01:07,000 --> 00:01:08,000 So moved. 29 00:01:08,000 --> 00:01:09,000 Second. 30 00:01:09,000 --> 00:01:11,000 All those in favor signify by aye. 31 00:01:11,000 --> 00:01:12,000 Aye. 32 00:01:12,000 --> 00:01:13,000 Aye. 33 00:01:13,000 --> 00:01:14,000 Any opposed? 34 00:01:14,000 --> 00:01:16,000 Motion carries. 35 00:01:16,000 --> 00:01:18,000 Now we move to item number five. 36 00:01:18,000 --> 00:01:19,000 Madam Clerk. 37 00:01:19,000 --> 00:01:23,000 Discussion and possible action to direct staff to prepare a study of the feasibility 38 00:01:23,000 --> 00:01:28,000 and benefits of issuing general obligation bonds to acquire public infrastructure. 39 00:01:28,000 --> 00:01:29,000 Thank you. 40 00:01:29,000 --> 00:01:32,000 Mr. Marriotti, our District Treasurer will present this, 41 00:01:32,000 --> 00:01:37,000 and Mr. Rossi, on behalf of Rancho Cerrita, is here if you want to say a few words 42 00:01:37,000 --> 00:01:42,000 or clarify any questions, but this time I'll turn it over to our District Treasurer. 43 00:01:42,000 --> 00:01:44,000 Thank you, Mr. Chairman, members of the Board. 44 00:01:44,000 --> 00:01:49,000 We recently received an application from the CFD developer that requested 45 00:01:49,000 --> 00:01:52,000 that the district would issue general obligation bonds 46 00:01:52,000 --> 00:01:59,000 in the amount of $18.158 million for the acquisition of public infrastructure. 47 00:01:59,000 --> 00:02:02,000 The map's a little hard to see up on the screen there. 48 00:02:02,000 --> 00:02:04,000 Your handouts are going to be a little bit easier for you, 49 00:02:04,000 --> 00:02:07,000 but you'll notice that most of the infrastructure that we're talking about 50 00:02:07,000 --> 00:02:12,000 and the $18 million issuance would pay for roadways as well as sewer lines, 51 00:02:12,000 --> 00:02:16,000 and all of this is located within the CFD boundaries. 52 00:02:16,000 --> 00:02:18,000 Most of this infrastructure that we're talking about 53 00:02:18,000 --> 00:02:22,000 has already been contemplated within the development agreement. 54 00:02:22,000 --> 00:02:28,000 We have nearly $51 million of bonding capacity that's available out of the original $60 million 55 00:02:28,000 --> 00:02:33,000 that was authorized back in the 2014 bond election, 56 00:02:33,000 --> 00:02:36,000 which took place in August of 2014. 57 00:02:36,000 --> 00:02:40,000 But before bonds are issued, the state statutes require that the CFD board 58 00:02:40,000 --> 00:02:43,000 cause a study of the feasibility and benefits of the project 59 00:02:43,000 --> 00:02:46,000 to be studied and analyzed in a report to be produced 60 00:02:46,000 --> 00:02:48,000 and presented in a public meeting. 61 00:02:48,000 --> 00:02:50,000 And that's why we're here today to seek your authorization 62 00:02:50,000 --> 00:02:53,000 to move forward with a feasibility report. 63 00:02:53,000 --> 00:02:56,000 And if you approve, staff will retain the services of our financial team 64 00:02:56,000 --> 00:03:00,000 and bond consultants to go ahead and put that study together for you, 65 00:03:00,000 --> 00:03:02,000 and then we would plan to bring that back to you, 66 00:03:02,000 --> 00:03:05,000 hopefully at our next meeting in January. 67 00:03:05,000 --> 00:03:07,000 So with that, if you have any questions, 68 00:03:07,000 --> 00:03:09,000 Mr. Orassi representing the developers here 69 00:03:09,000 --> 00:03:12,000 to answer any questions you may have and may have a short presentation. 70 00:03:12,000 --> 00:03:16,000 Yeah, I'll turn it over. 71 00:03:16,000 --> 00:03:18,000 What's the color of the gift? 72 00:03:18,000 --> 00:03:20,000 Rising to the occasion. 73 00:03:20,000 --> 00:03:26,000 Mr. Mayor, members of the Council, Michael Orassi 74 00:03:26,000 --> 00:03:30,000 appearing on behalf of the Rancher Solity to Development Company. 75 00:03:30,000 --> 00:03:34,000 And very brief presentation tonight. 76 00:03:34,000 --> 00:03:38,000 This is really just kicking off the feasibility study. 77 00:03:38,000 --> 00:03:41,000 This is the third one of these you will have done 78 00:03:41,000 --> 00:03:45,000 for the Rancher Solity to Community Facilities District. 79 00:03:45,000 --> 00:03:54,000 The first bond issuance was approximately 5.5 million. 80 00:03:54,000 --> 00:03:56,000 Last one we did. 81 00:03:56,000 --> 00:04:01,000 March of 18 months ago was only 3.75 million, 82 00:04:01,000 --> 00:04:06,000 much smaller right at the beginning of the COVID pandemic. 83 00:04:06,000 --> 00:04:11,000 I remember being on the phone with your town council 84 00:04:11,000 --> 00:04:14,000 and financial advisors and being asked, 85 00:04:14,000 --> 00:04:17,000 are you guys sure you still want to go forward? 86 00:04:17,000 --> 00:04:19,000 We said, yeah, we're going to go forward. 87 00:04:19,000 --> 00:04:21,000 We'll take the risk. 88 00:04:21,000 --> 00:04:27,000 Well, had we known, that issuance should have been double the size it was 89 00:04:27,000 --> 00:04:31,000 because the market has just really taken off, 90 00:04:31,000 --> 00:04:34,000 especially in the last six or eight months. 91 00:04:34,000 --> 00:04:38,000 I had had a number of discussions with your staff 92 00:04:38,000 --> 00:04:42,000 talking about the size of the last issuance, 3.7 million. 93 00:04:42,000 --> 00:04:44,000 It's not very efficient. 94 00:04:44,000 --> 00:04:47,000 There are a lot of fixed costs in doing these 95 00:04:47,000 --> 00:04:52,000 that are the same if you do 3 million or 30 million almost. 96 00:04:52,000 --> 00:04:55,000 And at that time, and this was a year ago, 97 00:04:55,000 --> 00:04:58,000 I said, yeah, yeah, we'll be in with at least 6 or 8 million. 98 00:04:58,000 --> 00:05:03,000 Well, the 6 turned to 12, turned to now 18. 99 00:05:03,000 --> 00:05:07,000 And we almost came in at closer to 26, 100 00:05:07,000 --> 00:05:11,000 but we couldn't get the engineering done for Region 8. 101 00:05:11,000 --> 00:05:16,000 In fact, we were hoping to have this application into you four to six months ago, 102 00:05:16,000 --> 00:05:19,000 but the engineers are so backed up, 103 00:05:19,000 --> 00:05:23,000 the cost estimates and the other base information 104 00:05:23,000 --> 00:05:26,000 your consultants have to have to do the study. 105 00:05:26,000 --> 00:05:29,000 We couldn't get done, but we are here now. 106 00:05:29,000 --> 00:05:34,000 This is all the remaining Region 7 and Region 9 infrastructure. 107 00:05:34,000 --> 00:05:37,000 It's exactly like the prior two issuances. 108 00:05:37,000 --> 00:05:41,000 It includes essentially the roads and sewers, 109 00:05:41,000 --> 00:05:46,000 and we've already accelerated the construction 110 00:05:46,000 --> 00:05:48,000 of part of Rancho Soliti to Boulevard. 111 00:05:48,000 --> 00:05:51,000 So we bid and are moving to construction on a phase 112 00:05:51,000 --> 00:05:54,000 that wasn't even in the last CFD. 113 00:05:54,000 --> 00:05:58,000 That'll get reimbursed from this. 114 00:05:58,000 --> 00:06:00,000 And we're just excited about it. 115 00:06:00,000 --> 00:06:05,000 We haven't seen this level of builder interest, home sales and pricing 116 00:06:05,000 --> 00:06:07,000 since before the Great Recession. 117 00:06:07,000 --> 00:06:10,000 We have builders signed up, not closed, 118 00:06:10,000 --> 00:06:16,000 but either a letter of intent on every portion of Region 7 and 9 119 00:06:16,000 --> 00:06:19,000 all the way down to the southern end of the project. 120 00:06:19,000 --> 00:06:22,000 So trying to move as quickly as we can. 121 00:06:22,000 --> 00:06:26,000 The town staff has been outstanding to work with all of them 122 00:06:26,000 --> 00:06:29,000 because we've had a lot of activity on the project, 123 00:06:29,000 --> 00:06:32,000 and I really want to thank all of them. 124 00:06:32,000 --> 00:06:35,000 I won't try to name everyone, but we've had a lot, 125 00:06:35,000 --> 00:06:36,000 and it's been going great. 126 00:06:36,000 --> 00:06:40,000 And with that, I'd be happy to answer any questions if you have any. 127 00:06:40,000 --> 00:06:41,000 Council, have any questions? 128 00:06:41,000 --> 00:06:42,000 Yes, Mr. Mayor. 129 00:06:42,000 --> 00:06:43,000 Yes. 130 00:06:43,000 --> 00:06:49,000 Do your cost estimates and planning not to bring the future forward too much, 131 00:06:49,000 --> 00:06:52,000 but do they account for the Sonoran Corridor, 132 00:06:52,000 --> 00:06:55,000 which will be going through about 89 up there? 133 00:06:55,000 --> 00:06:59,000 The cost estimates don't account for that. 134 00:06:59,000 --> 00:07:03,000 We don't even know what's happened on that, 135 00:07:03,000 --> 00:07:07,000 but it's certainly something we're paying a lot of attention to, 136 00:07:07,000 --> 00:07:09,000 and I've been involved in the Tier 1 study. 137 00:07:09,000 --> 00:07:14,000 Funding is being sought for the Tier 2 study now. 138 00:07:14,000 --> 00:07:19,000 Hopefully, I'm not sure the infrastructure bill will be able to fund that project, 139 00:07:19,000 --> 00:07:21,000 but progress is being made, 140 00:07:21,000 --> 00:07:24,000 and we'll just, with respect to the Rancho project, 141 00:07:24,000 --> 00:07:26,000 have to see what develops. 142 00:07:26,000 --> 00:07:31,000 It's still many, many, many years down the road. 143 00:07:31,000 --> 00:07:33,000 I sometimes wonder about that, 144 00:07:33,000 --> 00:07:36,000 given the amount of money that's being printed. 145 00:07:36,000 --> 00:07:40,000 The infrastructure could certainly come much more quickly, 146 00:07:40,000 --> 00:07:44,000 especially since this is getting support at a regional level to a fair degree. 147 00:07:44,000 --> 00:07:45,000 I'm not worried about A11. 148 00:07:45,000 --> 00:07:49,000 That's for the grandchildren of our grandchildren to worry about. 149 00:07:49,000 --> 00:07:52,000 But again, just so that you're in tune with it, 150 00:07:52,000 --> 00:07:55,000 because obviously it's going to have a big impact 151 00:07:55,000 --> 00:08:00,000 cutting through that property at some point with your sewers and other things. 152 00:08:00,000 --> 00:08:03,000 In Gil, I just had a meeting, a PAG RTA meeting, 153 00:08:03,000 --> 00:08:07,000 and we had a presentation on that particular project. 154 00:08:07,000 --> 00:08:10,000 They think it'll probably be in three phases, 155 00:08:10,000 --> 00:08:12,000 coming from the east to the west, 156 00:08:12,000 --> 00:08:14,000 from I-10 to the airport, 157 00:08:14,000 --> 00:08:17,000 airport down to Salvarita Road. 158 00:08:17,000 --> 00:08:19,000 I'm using the airport, I'm saying that's exactly it. 159 00:08:19,000 --> 00:08:24,000 And then the third phase would be what you're discussing, 160 00:08:24,000 --> 00:08:29,000 and the cost estimate today is a billion dollars to do it. 161 00:08:29,000 --> 00:08:32,000 Never mind, like you said, I-11, what that's going to cost, 162 00:08:32,000 --> 00:08:37,000 but just the Sonoran Corridor portion in total is about a billion dollars. 163 00:08:37,000 --> 00:08:40,000 I think it goes to your point on what's in there 164 00:08:40,000 --> 00:08:42,000 and how much can one project get. 165 00:08:42,000 --> 00:08:44,000 I think the airport's getting 300 million, 166 00:08:44,000 --> 00:08:48,000 and that's a huge win to get 300 million, 167 00:08:48,000 --> 00:08:51,000 but that's as far as we've been briefed. 168 00:08:51,000 --> 00:08:54,000 No, I just like to make sure that we're contemplating 169 00:08:54,000 --> 00:09:00,000 because that type of future obstruction going through a major development 170 00:09:00,000 --> 00:09:03,000 can be rather upsetting. That's all. 171 00:09:03,000 --> 00:09:04,000 And thank you. 172 00:09:04,000 --> 00:09:05,000 Mr. Mayor. 173 00:09:05,000 --> 00:09:06,000 Yes. 174 00:09:06,000 --> 00:09:07,000 Council Member Lusk. 175 00:09:07,000 --> 00:09:10,000 My firm is the lead lobbyists on getting money for that project, 176 00:09:10,000 --> 00:09:12,000 so I am intimately familiar with it. 177 00:09:12,000 --> 00:09:13,000 Did I state anything incorrectly? 178 00:09:13,000 --> 00:09:14,000 You did not. 179 00:09:14,000 --> 00:09:15,000 Okay, good. 180 00:09:15,000 --> 00:09:20,000 Now I'm confident that it will be in Phase 3 in no time at all. 181 00:09:20,000 --> 00:09:21,000 Mr. Mayor, everyone's question. 182 00:09:21,000 --> 00:09:22,000 Yes. 183 00:09:22,000 --> 00:09:23,000 I actually have it for staff. 184 00:09:23,000 --> 00:09:26,000 Whenever I'm voting to- 185 00:09:26,000 --> 00:09:29,000 I know we're not increasing anybody's taxes on this bond or whatever, 186 00:09:29,000 --> 00:09:32,000 but we are extending the time that they will be paying for it. 187 00:09:32,000 --> 00:09:34,000 What is the process- 188 00:09:34,000 --> 00:09:35,000 can you remind me again, 189 00:09:35,000 --> 00:09:37,000 it's allowing the residents to know that this is coming, 190 00:09:37,000 --> 00:09:39,000 that this vote is going to occur? 191 00:09:39,000 --> 00:09:44,000 Because I know this affects only a small portion of our residents currently. 192 00:09:44,000 --> 00:09:46,000 Mr. Chairman, members of the board, 193 00:09:46,000 --> 00:09:49,000 that action isn't what we're taking today. 194 00:09:49,000 --> 00:09:51,000 Right now we're just looking for the authorization to move forward 195 00:09:51,000 --> 00:09:53,000 with the feasibility report. 196 00:09:53,000 --> 00:09:56,000 So the way the process would work is get the authorization today, 197 00:09:56,000 --> 00:09:58,000 come back in January, 198 00:09:58,000 --> 00:10:01,000 actually take a look at the results of the feasibility report, 199 00:10:01,000 --> 00:10:03,000 which includes all the financing and what have you. 200 00:10:03,000 --> 00:10:05,000 And then after that, 201 00:10:05,000 --> 00:10:08,000 we had scheduled another meeting for a month later in February, 202 00:10:08,000 --> 00:10:10,000 and that would be the one that would be the public hearing 203 00:10:10,000 --> 00:10:13,000 and an opportunity for the public to come and give you feedback. 204 00:10:13,000 --> 00:10:15,000 Okay. Thank you. 205 00:10:15,000 --> 00:10:17,000 Any other questions? 206 00:10:17,000 --> 00:10:19,000 I'll entertain the motion. 207 00:10:19,000 --> 00:10:20,000 Council members, thank you very much. 208 00:10:20,000 --> 00:10:21,000 Mr. Mayor. Yes. 209 00:10:21,000 --> 00:10:24,000 I move to direct district staff to prepare a feasibility study 210 00:10:24,000 --> 00:10:27,000 for the insurance issuance of general obligation bonds 211 00:10:27,000 --> 00:10:29,000 to acquire public infrastructure. 212 00:10:29,000 --> 00:10:30,000 Second. 213 00:10:30,000 --> 00:10:31,000 Any further discussion? 214 00:10:31,000 --> 00:10:33,000 All those in favor, signify by aye. 215 00:10:33,000 --> 00:10:34,000 Aye. 216 00:10:34,000 --> 00:10:35,000 Any opposed? 217 00:10:35,000 --> 00:10:36,000 Aye. 218 00:10:36,000 --> 00:10:37,000 Moving forward. 219 00:10:37,000 --> 00:10:38,000 Thank you. 220 00:10:39,000 --> 00:10:42,000 Having no more further business for the CFD, 221 00:10:42,000 --> 00:10:43,000 we'll adjourn.