AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 19-000693
MEETING DATE:	06/25/19
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	4
SUBMITTING Agency/Department:	Supervisor Chaffee (Approved)
Department contact person(s):	Suzanne Luster (714) 834-3362
	Christine Gardea (714) 834-3014

Subject: Adopt Resolution to authorize participation in Placentia EIFD and approve IFP

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: 4/23/2019 #49

RECOMMENDED ACTION(S):

Adopt resolution to authorize the County's participation in the Placentia Enhanced Infrastructure Financing District and approve the Infrastructure Financing Plan for the Placentia Enhanced Infrastructure Financing District.

SUMMARY:

Approval of the recommended action by the Board of Supervisors will authorize the County's participation in the Placentia Enhanced Infrastructure Financing District and will approve the District's Infrastructure Financing Plan.

BACKGROUND INFORMATION:

On September 24, 2014, the governor approved SB 628, which authorized the formation of an Enhanced Infrastructure Financing District (EIFD). An EIFD is a limited tax increment financing district created after the dissolution of redevelopment agencies in 2012.

An EIFD allows one or more governmental entities to agree to secure a portion of property tax revenue, generated within the district boundaries, for the construction of infrastructure and other capital needs. A key difference between EIFDs and former redevelopment agencies is, that tax increment contributed to a district excludes property taxes associated with school districts. No new taxes are created.

On April 23, 2019, your Board approved the resolution of the County's intent to participate in the Placentia EIFD.

On May 21, 2019, the City of Placentia (City) adopted a resolution to establish the Placentia EIFD Public Financing Authority (PFA) and its membership. On June 18, 2019, the City is scheduled to approve a resolution to approve the IFP.

Placentia EIFD

The Placentia EIFD will encompass approximately 300 acres of land and includes the City’s Old Town Placentia Revitalization Plan area, a forthcoming Metrolink station and the City’s Transit-oriented Development Packing House District. The Placentia EIFD will be a partnership between the City and the County and will be funded by property tax increment from both taxing entities.

The PFA intends to utilize the Placentia EIFD to assist the funding of transit-supportive public infrastructure, including improvements to bicycle and pedestrian connectivity, sidewalks, landscaping, signage, lighting, beautification, public safety access, parking, roadway, circulation, open space, water, sewer and other utility capacity improvements, with emphasis on implementation of the Old Town Placentia Revitalization Streetscape Master Plan, with an estimated cost of approximately $8 million in current 2019 dollars.

The development in the public infrastructure in the Placentia EIFD will help promote private development. The anticipated future private development includes approximately 1,600 residential units, 125,000 square feet of commercial and approximately 116 hotel rooms. This private development is anticipated primarily in the Old Town Revitalization Area and adjacent Transit-oriented Development Packing House District and is forecasted in the first 10 years of the District lifetime.

Infrastructure Financing Plan

The County’s participation terms contained in the Infrastructure Financing Plan (IFP) are consistent with County Resolution No. 19-032, Intent to Participate in the Placentia EIFD and the EIFD Participation Policy your Board approved on June 4, 2019.

Pursuant to Government Code Sections 53398.59 – 53398.74, the IFP includes the following elements:

	A.	Map and legal description (IFP, Appendix A and B).
	B.	Description of public facilities, including proposed location, timing, and cost of development (IFP, Section 3).
	C.	Finding of communitywide significance (IFP, Section 4).
	D.	Financing Section (IFP, Section 5)

Investment

The IFP, Section 5 provides participation terms that include:

- The maximum portion of the incremental tax revenue of the County and City property tax increment to be committed to the Placentia EIFD will be 50% throughout the duration of the EIFD.

- The maximum total tax contribution that may be allocated to the Placentia EIFD is $3,547,000 from the County and $9,100,000 from the City over the duration of the EIFD.

- The EIFD will cease to exist the earlier of: (i) 20 years from the date on which the first issuance of bonds or acquisition of a loan is approved by the PFA, or (ii) June 30, 2044.

- It is estimated that approximately $8 million of bond or loan proceeds (in 2019 dollars) will be secured by the PFA over the EIFD lifetime to fund the infrastructure improvements. There will be no County debt.

Return on Investment

- An analysis of the projected fiscal impact of the EIFD and the associated development is estimated at Year 20 of the EIFD lifetime to generate an annual net fiscal surplus of approximately $1,270,210 to the County and $2,328,500 to the City. The present value net positive fiscal impact over 50 years is estimated at $25 million to the County and $33 million to the City.

- Regional and community benefits expected to be created by the Placentia EIFD include over 3,900 construction jobs, and over 1,150 permanent jobs in the County and City.

Next Steps

The PFA will hold a public hearing for the formation of the Placentia EIFD and approval of the IFP on July 30, 2019.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Resolution
Attachment B - Placentia EIFD Infrastructure Financing Plan
Attachment C - Government Code 53398.50-53398.58