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Old Kings Road

Old Kings Road. Special Assessment District. Overview. History Phased Project Initiating Special Assessment Next Steps. History. Map of Area. History. Special Assessment District Established in 2005

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Old Kings Road

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  1. Old Kings Road Special Assessment District

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

  3. History

  4. Map of Area

  5. History Special 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

  6. History Subsequent 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

  7. History Change 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

  8. Phased Project

  9. 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 interfundloan 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

  10. Palm Coast Pkwy. Phased Project Map Phase 2 Royal Palms Pkwy. Phase 1 State Road 100

  11. Phased Project Costs and Funding Source

  12. Initiating special assessment

  13. 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

  14. Negotiations with Property Owners From City Perspective • Interfund loan must be repaid first and as quickly as possible • No desire for City to become 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

  15. Funding Agreement 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)

  16. Funding Agreement Section 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

  17. Funding Agreement If 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 Citywide Impact Fee Eligible Projects Phase 2B Phase 2A Phase 1

  18. NEXT STEPS

  19. Next Steps City Council July 16 Meeting • Amend Special Assessment Ordinance (1st Reading) • 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

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