[This transcript was generated automatically from audio using AI and hasn't been reviewed by a person -- it can contain mistakes, including plausible-sounding sentences that were never actually said. Treat it as a starting point, not a verbatim record.]

[0:00] I suspend our town council meeting, commence with our ranchers to read a community facilities district meeting, hereby call this meeting to order and madam clerk may have a roll.
[0:12] Board member Barack. Board member Davis.
[0:15] Board member Hicks. Board member Luske.
[0:18] Board member Morales. Vice chair person, here, chair person Murphy.
[0:23] Quorum president.
[0:23] Thank you. Next is called the public.
[0:26] At this time, any member of the public is invited to address the district board on any issue which is on tonight's consent agenda or any issue which the district board can
[0:34] Laughly act upon at a future meeting pursuing to Arizona open meeting laws the district board may not discuss items but individual members of the district board may respond to criticism made by those who have addressed the district board may ask
[0:46] after review the matter may ask, matter to be placed on a future agenda, I don't have any
[0:51] call to the public cards for the Rancho Serrita Community Facilities District.
[0:55] If anybody liked to address the board, this would be the time.
[0:59] Seeing no movement, I will close the call to the public and move to item number four, which
[1:04] is the consent agenda and their chain of motion at this time.
[1:07] So, moved?
[1:08] Sir.
[1:09] All those in favor, sing if I buy.
[1:11] Aye.
[1:12] Aye.
[1:13] Any opposed?
[1:14] Motion carries.
[1:15] Now, we move to item number five, Madam Clerk.
[1:19] Discussion and possible action to direct staff to prepare a study of the feasibility and
[1:23] benefits of issuing general obligation bonds to acquire public infrastructure.
[1:28] Thank you.
[1:29] Mr. Marriottie, our district treasurer, will present this and Mr. Rossi on behalf of
[1:34] Rancho Sireta is here if you want to say a few words or clarify any questions, but this time
[1:39] I'll turn it over to.
[1:40] Just a treasurer.
[1:42] All right.
[1:42] Thank you, Mr. Chairman.
[1:43] members of the board. We recently received an application from the CFD developer that requested
[1:49] that the district would issue general obligation bonds in the amount of $18 million, $18.158 million
[1:57] for the acquisition of public infrastructure. The map is a little hard to see up on the screen
[2:01] there. Your hand has to be a little bit easier for you. You'll notice that most of the infrastructure
[2:06] that we're talking about in the $18 million issuance with pay for roadways as well as sewer lines.
[2:12] all of this is located within the CFD boundaries. Most of this infrastructure that we're
[2:17] talking about has already been contemplated within the development agreement. We have nearly
[2:23] $51 million of bonding capacity that's available out of the original $60 million dollars that was
[2:29] authorized back in the 2014 bond election, which would took place in August of 2014.
[2:36] But before bonds are issued, the state statutes require that the CFD board
[2:40] cause the study of the feasibility and benefits of the project to be studied and analyzed and
[2:45] a report to be produced and presented in a public meeting. And that's why we're here today to
[2:49] seek your authorization to move forward with a feasibility report. And if you approve, staff will
[2:54] retain the services of our financial team and bond consultants to go ahead and put that study
[2:59] together for you and then we would plan to bring that back to you hopefully at our next meeting in
[3:04] January. So with that, if you have any questions, Mr. Orasi representing the developers here to answer
[3:10] Any questions you may have and may have a short presentation?
[3:12] I'll turn it over.
[3:18] Rising to the occasion.
[3:24] Mr. Mayor, members of the Council, Michael Rossi, appearing on behalf of the
[3:28] Renter Society to Development Company.
[3:31] And very brief presentation tonight.
[3:34] This is really just kicking off the feasibility study.
[3:38] This is the third one of these.
[3:40] You will have done for the Regisoretic Community Facilities District.
[3:45] The first bond issuance was approximately 5.5 million.
[3:54] Last time we did March of 18 months ago was only 3.75 million.
[4:01] Much smaller right at the beginning of the COVID pandemic.
[4:05] I remember being on the phone with your town council and financial advisors and being asked,
[4:14] are you guys sure you still want to go forward?
[4:16] We said, yeah, we're going to go forward.
[4:19] We'll take the risk.
[4:20] Well, had we known that issuance should have been double the size it was,
[4:27] because the market has just really taken off,
[4:31] especially in the last six or eight months.
[4:34] I had had a number of discussions with your staff talking about the size of the last
[4:39] issuance, 3.7 million, it's not very efficient.
[4:43] There are a lot of fixed costs in doing these that are the same if you do 3 million or
[4:49] 30 million almost and at that time, and this was a year ago, I said, yeah, yeah, we'll
[4:55] be in with at least six or eight million.
[4:58] Well, the six turned to 12, turned to now 18,
[5:03] and we almost came in at closer to 26,
[5:06] but we couldn't get the engineering done for region eight.
[5:11] In fact, we were hoping to have this application
[5:13] into you four to six months ago,
[5:16] but the engineers are so backed up,
[5:18] the cost estimates and the other base information,
[5:22] and your consultants have to have to do this study.
[5:26] We couldn't get done, but we are here now.
[5:29] This is all the remaining region seven
[5:32] and region nine infrastructure.
[5:34] It's exactly like the prior two issuances.
[5:37] It includes essentially the roads and sewers,
[5:41] and we've already accelerated the construction
[5:45] of part of rancher facility to Boulevard.
[5:48] So we bid and are moving to construction on a phase
[5:51] that wasn't even in the last CFD, that'll get reimbursed from this, and we're just excited
[5:59] about it.
[6:00] We haven't seen this level of builder interest, home sales, and pricing since before the
[6:06] great recession, we have builders signed up, not closed, but either a letter of intent,
[6:13] an every portion of Region 7 and 9 all the way down to the southern end of the project.
[6:19] So, trying to move as quickly as we can, the town staff has been outstanding to work with all of them because we've had a lot of activity on the project and I really want to thank all of them.
[6:31] I won't try to name everyone, but we've had a lot and it's been going great.
[6:36] And with that, I'd be happy to answer any questions if you have any.
[6:40] Council, have any big questions?
[6:41] Yes, Mr. Mayor.
[6:42] Yes, does the cost estimates in planning not to bring the forward to bring the future forward too much, but
[6:50] do they account for these to no one corridor, which will be going through about so eight nine up there?
[6:56] The cost estimates don't account for that. We don't even know what's understood.
[7:02] On that, but it's certainly something we're paying a lot of attention to and I've been involved in the
[7:08] one study funding is being sought for the Tier II study now. Hopefully, I'm not sure the infrastructure
[7:16] bill will be able to fund that project but progress is being made and we'll just with respect
[7:23] to the rental project have to see what develops. It's still many, many, many years down the road.
[7:31] I sometimes wonder about that given the amount of money that's being printed. The infrastructure
[7:37] could certainly come much more quickly, especially since this is getting support as a regional
[7:42] level to a fair degree. I'm not worried about A11 that's for the grandchildren of our
[7:47] grandchildren to worry about. But again, just so that you're in tune with it because obviously
[7:53] it's going to have a big impact cutting through that property at some point with your swimmers and
[7:59] other things. In Guil, I just had a meeting, Pag RTA meeting and we had a presentation on that
[8:05] particular project, they think it would probably be in three phases coming from the east to
[8:11] the west, you know, from I-10 to the airport, airport down to Salverbeera Road. I'm using
[8:17] airpoint that's saying that's important. And then the third phase would be, you're discussing,
[8:24] and the cost estimate today is a billion dollars to do it. Never mind, like you said,
[8:30] I-11, what that's going to cost, but just the Sinoa and Corridor portion in total is about
[8:35] billion dollars. So I think it goes to your point on what's in there and how much can one project,
[8:41] you know, get, I think the airport's getting 300 million and that's a huge win, you know,
[8:46] to get 300 million, never mind a billion. But that's as far as we've been rafed.
[8:51] And now I just like to make sure that we're contemplating because that type of future obstruction
[8:58] going through a major development can be rather upsetting. That's all. And thank you.
[9:04] Mr. Mayor. Yes. Council Member Lusk. I'm my firm is the lead lobbyists on getting money for that project.
[9:10] So I am intimately familiar with it. Did I state anything incorrectly?
[9:13] You did not. Well, good. Now I'm confident that it will be in phase three in the time on.
[9:20] Mr. Mayor, one question. I just have it for staff.
[9:23] Whenever I'm voting to I know we're not increasing anybody's taxes on this bond or whatever, but we are extending the time that they will be paying for it.
[9:32] What is the process? Can you remind me again? It's allowing the residents to know that this is coming.
[9:37] This vote is going to occur.
[9:39] Because I know this affects only a small portion of our residents currently.
[9:44] Mr. Chairman, members of the board, that action isn't what we're taking today.
[9:48] Yes, right now.
[9:49] Just looking for the authorization to move forward with the feasibility report.
[9:53] So the way the process would work is get the authorization today, come back in January,
[9:57] actually take a look at the results of the feasibility to report, you know, which includes all the financing and what I have you.
[10:03] And then after that, we had had scheduled another meeting for a month later in February, and that would be the one that would be the public hearing and an opportunity for the public come to come and give you feedback.
[10:13] Okay. Thank you.
[10:15] Any other questions?
[10:18] I'll entertain the council members. Thank you very much.
[10:20] Mr. Mayor. Yes.
[10:21] I'm going to direct district staff to prepare a feasibility study for the insurance, the issuance of general obligation bonds to acquire public infrastructure.
[10:29] Second.
[10:30] Any further discussion?
[10:31] All those in favor?
[10:32] Signify by aye.
[10:34] Aye.
[10:36] Moving forward.
[10:37] Thank you.
[10:39] Having no more further business for the CFD will adjourn.