OLD KINGS ROADSpecial Assessment District

Overview• History• Phased Project• Initiating Special Assessment• Next Steps

HISTORY

Map of Area

HistorySpecial Assessment District Established in 2005• Provide funding mechanism through property tax

assessments to fund 4-laning improvements from Palm Coast Parkway to SR100

• Property owners benefiting pay for improvements• Enhance value of properties and provide special benefits

• Address development order conditions• Alleviate transportation concurrency concerns

Note: Economic and real estate outlook was positive

HistorySubsequent Amendments to District in 2008• Upgraded hybrid urban section funded through

transportation impact fees• Allow for interlocal agreement with Town Center CDD to

manage construction of improvements• Provided for assessment methodology based on

developable acres

HistoryChange in Market Conditions• Real estate market began to weaken in 2008• Bond market weakened subsequently• District no longer had to ability to issue bonds based on

real estate as collateral

PHASED PROJECT

Phased Project• Property owners approached City in 2008

• Several projects (including Wal-Mart) were dependent on Phase 1 improvements to Old Kings Road

• Issuance of bonds not an available option at time• In 2009, City made available utility funds through an

interfund loan to Special Assessment District to complete Phase 1 improvements• Interfund loan at 5% interest only• Paid by certain landowners• Interim financing (3-year term) until bonds could be issued

Phased Project Map

Phase 2

Phase 1

Palm Coast Pkwy.

Royal Palms Pkwy.

State Road 100

Phased Project Costs and Funding SourceProject Costs CostConstruction $5,284,036

Utility Construction $1,531,728

Engineering & Permitting $2,306,995

Attorney Fees $156,288

Wetland Mitigation $360,000

Real Estate Services $96,359

Miscellaneous $157,822

Total $9,893,228

Funding Sources Amount

Utility Interfund Loan $5,284,036

Transportation Impact Fees $1,405,164

Total District Responsibility $6,689,200

Utility Fund (Utility Line Upgrades/Relocates) $1,531,728

Transportation Impact Fees (20% for Hybrid Urban Upgrade) $1,672,300

Total City Responsibility $3,204,028

INITIATING SPECIAL ASSESSMENT

Initiating Special Assessment• District is established with special assessments pending• City Utility has received interest payments of $640,000 in

accordance with agreement• City must start to assess District for repayment of interfund loan

for both legal and practical reasons• Interfund loan intended to be interim until such time that issuance of

bonds possible• Issuance of bonds based on real estate values for the foreseeable future

will be a challenge• City Council adopted Resolution 2012-102 to allow for special

assessment starting in November 2013 • City Council adopted Resolution 2013-41 entering into an

Interlocal Agreement with property tax collector for collection of special assessments

Negotiations with Property OwnersFrom City Perspective• Interfund loan must be repaid first and as quickly as possible• No desire for City to be property owners/developers• Avoid litigation

From Property Owners Perspective• Should not pay twice for road improvements (special

assessments + impact fees/prop-share)• Desire to see entire project completed• Avoid litigation

Solution = Use Impact Fees within District to Accelerate Interfund Loan Repayment and Complete Phase 2 in Future

Funding Agreement

Special Assessment Impact FeeFirst 3 Years 5% Interest Only Previously Paid Impact

Fees ($326,000) + Future Impact Fees Applied to Principal

Next 27 Years Principal + 5% Interest Future Impact Fees Applied to Special Assessment to Accelerate Repayment of Principal

Section 3 – Bond Anticipation Loan (Interfund Loan) Repayment• Provides for Repayment of Interfund Loan in Whole - $5,284,036

• Special Assessment allocated by developable acres / Hidden Lakes/Toscana lots per prior agreements

• Allows for Reimbursement Bonds (or financing) to repay Bond Anticipation Loan (Interfund Loan)

Funding AgreementSection 4 - Transportation Impact Fees; Phase 2 • Future Impact Fees Applied as Follows:

• Pay Remaining Special Assessments • Accelerate Interfund Loan Repayment

• Credit Previously Paid Special Assessments• Property Owners Don’t Pay Twice for Road Improvements

Funding AgreementIf Impact Fees are Still Remaining . . .

• Earmarked for Construction of Phase 2A

• Earmarked for Construction of Phase 2B (80%) and Restoration of Impact Fee Advance (20%)• Once Impact Fee Advance

Repaid, 100% Earmarked for Construction of Phase 2B

• Tri-Party Landowners who Carried Interest Entitled to Impact Fee Credits

• Other Impact Fee Eligible Projects Citywide

NEXT STEPS

Next StepsCity Council July 16 Meeting• Amend Special Assessment Ordinance (1st Reading)

• Reflect Changes in Developable Acres• Approve Funding Agreement with Landowners

City Council August 6 Meeting• Amend Special Assessment Ordinance (2nd Reading)

City Council August 20 Meeting• Approve Supplemental Assessment Resolution