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RESOLUTION NO. 1318
A Resolution Establishing a Policy on Developer Local Improvement Districts
WHEREAS, the City Council recognizes the need to provide for the orderly
growth of the City, and
WHEREAS, Local Improvement Districts (L.I.D.'s) represent one way to
foster growth and development, and
WHEREAS, land developers have expressed an interest in using the L.I.D.
means of financing to develop the public facility infrastructure (sidewalks, streets,
curbs and gutter, street lighting, sanitary sewers, and storm drains) of new sub-
divisions; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO.
Section 1. That a condition precedent to the formation of a developer L.I.D.
will require the consideration of a deposit in escrow in an amount up to two times
the then current interest rate on L.I.D. bonds.
Section 2. That, prior to the formation of a developer L.I.D., the City
Manager will cause the city staff, in cooperation with Foster and Marshall, the
City's fiscal advisor, to review and report to the City Council on the following
criteria relating to the amount of escrow required
(a) Strength of current financial statement.
(b) Degree of liquidity potential.
(c) Size and type of proposed L.I.D.
(d) General market conditions for the class of real estate development being
proposed.
(e) Status of City's L.I.D. Guaranty Fund at the time of the proposed
formation of the L .I.D.
(f) Proposed location of L.I.D. relating to its consistency with sound growth
management principles.
(g) Number of property owners involved.
(h) Potential marketability of the L.I.D. bonds.
(i) Degree of equity investment in the proposed L.I.D.
Section 3. Depending on the report received on the foregoing criteria, the
City Council may waive all or some part of the escrow requirement, or, if the
situation dictates, the Council may require the maximum escrow deposit.
Section 4. The escrow, when required, may be cash, equivalent security, or
a performance bond may be presented in lieu of escrow.
Section 5. The escrow account for a particular L.I.D. will remain throughout
the life of the Local Improvement District, but will be reduced on a pro-rata basis
as the developer property is sold. Such escrow account may be eliminated entirely
when, in the opinion of the City's fiscal advisor, enough property has been sold to
sufficiently protect the City against default on the bonds.
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Section 6. As part of the escrow deposit, an amount equal to the estimated
preliminary engineering cost, as determined by the City Engineer, will be required
in every case and will be forfeited to the City should the developer decide not to
complete the improvement.
Section 7. The cost of the preparation of the escrow agreement, together
with the cost of administen.ng the escrow account will become part of the total
assessment of the Local Improvement District.
Section 8. Interest earned on the escrowed funds shall accrue for the
benefit of the developer(s) making the deposit.
4 PASSED by the City Council of the City of Pasco this day of
February , 1980.
Chet Bailie, Mayor
Evelyn Wells, City Clerk
APPROVED AS TO FORM.
4.A-C3 SJI/f4r4-n
Dennis J. De Fe ice, City Attorney