Amended and Restated Assessment Ordinance - Black Desert PID
Notice Tags
Resolutions
Notice Type(s)
Notice
Event Start Date & Time
March 8, 2024 11:17 AM
Description/Agenda
BLACK DESERT PUBLIC INFRASTRUCTURE DISTRICT
BLACK DESERT ASSESSMENT AREA #1
AMENDED AND RESTATED ASSESSMENT ORDINANCE
DATED AS OF MARCH 6, 2024
AMENDED AND RESTATED ASSESSMENT ORDINANCE
WHEREAS, the Board of Trustees (the 'Board') of the Black Desert Public Infrastructure District (the 'District'), adopted Resolution No. 2024-02 on January 11, 2024 (the 'Authorizing Resolution'), pursuant to which the Board authorized and approved an Assessment Ordinance (as subsequently amended, the 'Original Assessment Ordinance') and the form of the related designation resolution (the 'Designation Resolution'); and
WHEREAS, the Board adopted Resolution No. 2024-04 on March 6, 2024 (the 'Authorizing Resolution'), pursuant to which the Board authorized and approved an Amended and Restated Assessment Ordinance (the 'Amended and Restated Assessment Ordinance'), amending and restating the Original Assessment Ordinance, and the form of the related designation resolution (the 'Designation Resolution'); and
WHEREAS, the District, pursuant to the Assessment Area Act, Title 11 Chapter 42, Utah Code Annotated 1953, as amended (the 'Act'), and pursuant to the Authorizing Resolution and the Designation Resolution, designated the Black Desert Assessment Area #1 (the 'Assessment Area') after having obtained from the fee simple owner(s) of all the property to be assessed within the Assessment Area (the 'Title Owners') an executed Acknowledgement, Waiver and Consent Agreement (the 'Waiver and Consent') attached to the Designation Resolution; and
WHEREAS, the District plans to finance the costs of publicly owned infrastructure, facilities or systems as part of an approximately 600-acre residential and commercial development (the 'Black Desert Development'). The District has previously issued its Limited Tax General Obligation Bonds, Series 2021 (the 'Limited Tax Bonds') to finance a portion of the improvements within the Black Desert Development and plans to levy the assessments to finance the remainder of the Improvements within the Black Desert Development. The District may elect in the future to issue more Limited Tax Bonds and accordingly reduce the assessments to finance the Improvements. The Board desires to assess and finance the Improvements (plus related overhead, administration, capitalized interest, reserves, permits, fees, and closing costs) benefitting the Assessment Area as follows:
-Parking improvements, including, but not limited to underground and structured parking facilities.
-Sewer mains, manholes and manhole linings, sewer cleanouts, and laterals (various sizes).
-Water mains, valves, tees/crosses, bends, thrust bonds, fire hydrants, blow offs and appurtenances (various sizes).
-Roads and roadway improvements including, but not limited to, street signage, centerline monuments, conduit crossings, street striping, streetlights and mailboxes.
-Storm drain pipes, junction boxes, inlets, culverts, trash racks, rip-rap and geotextile fabric.
-Amenities, including parks, nature centers, trails, convention centers (if any), and related improvements.
WHEREAS, the Board has (i) determined the total estimated cost of the Improvements, (ii) received an appraisal (the 'Appraisal') of the property to be assessed (from an appraiser who is a member of the Appraisal Institute) and addressed to the District verifying that the market value of the property, after completion of the proposed improvements, is at least three times the amount of the assessments proposed to be levied against the property to be assessed, and (iii) desires to assess the properties within the Assessment Area, and has prepared an assessment list of the assessments to be levied to finance the cost of the Improvements (the 'Assessments'); and
WHEREAS, the Board hereby finds that pursuant to the Act, the Improvements constitute a publicly owned infrastructure, facility, or system that (i) the District is authorized to provide or (ii) is necessary or convenient to enable the District to provide a service that the District is authorized to provide; and
WHEREAS, certain portions of the Parking Zone and the Residential Zone (each as defined herein) are within the same parcels, and it is anticipated that such parcels will be subdivided into condominium plats which will delineate such Assessment Zones (as defined herein); and
WHEREAS, certain Title Owners have previously encumbered certain commercial areas (the 'Commercial Property') within the Assessment Area pursuant to an Amended and Restated Loan Agreement between BD Resort Center, Enlaw, LLC, and Petros PACE Finance Titling Trust, dated March 1, 2023 (the 'Petros Loan Agreement'); and
WHEREAS, the Petros Loan Agreement does not encumber any portion of the Golf Zone (as defined herein) and pursuant to its terms will not encumber any residential development or parking structures; and
WHEREAS, the District and the Title Owners do not intend to assess the Commercial Property and intend to release such property from the lien of the Assessments as it is subdivided prior to any billing (provided that any release or reallocation shall only occur in accordance with the provisions of this Ordinance); and
WHEREAS, the District now desires to confirm the assessment list and to levy said Assessments in accordance with this Ordinance:
WHEREAS, the Title Owners have presented evidence to the District, and the Board hereby finds that the residential improvements and density assumed in the Appraisal are accurate, permitted and available within the Assessment Area without any diminishment from the anticipated Commercial Property; and
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE BLACK DESERT PUBLIC INFRASTRUCTURE DISTRICT:
Section 1. Definitions; Appraisal Requirement. Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Designation Resolution. For purposes of this Ordinance:
(a) 'ATV Ratio' means the Assessment to Value Ratio and shall be the ratio of (A) the remaining unpaid Assessment on a Subdivision Parcel or Remaining Subdivision parcel, as applicable, plus any other unpaid assessment liens or property tax liens on such Subdivision Parcel divided by (B) the Fair Market Value of such Subdivision Parcel.
(b) 'Fair Market Value' shall be determined using either taxable value as maintained on the tax records of Washington County, Utah (the 'County') (plus the costs of the Improvements if not accounted for yet in the taxable value) or by appraised value presented by the owner of the Subdivision Parcel or Remaining Subdivision Parcel, as applicable, and determined by a certified appraiser acceptable to the District, including the costs of the Improvements and any other additions or improvements to the extent currently funded at the time of such appraisal, and meeting any other appraisal requirements of the District related to the Assessment Bonds.
(c) 'Original ATV Ratio' means the ATV Ratio on a parcel, Subdivision Parcel, or Remaining Subdivision Parcel, as applicable, at the time of closing of the Assessment Bonds (as reasonably determined by the District).
(d) Whenever an appraisal is required under this Ordinance, the District and Title Owners may continue to utilize an appraisal previously delivered in connection with the Assessment Area so long as (i) such appraisal describes the intended use of the Subdivision Parcel and such parcel entitled for such intended use and/or density (as applicable), (ii) the Title Owner certifies in writing that it is not aware of any facts or circumstances that would cause the relevant values contained in such appraisal to be materially less than the market value of the Subdivision Parcel, and (iii) the District in its reasonable judgement has no reason to question such certification.
Section 2. Determination of Estimated Costs of the Improvements and Right of District to Levy Additional Assessments for Completion. The Board has determined that the estimated acquisition, construction and installation costs of the Improvements within the Assessment Area, including estimated overhead costs, administrative costs, costs of funding reserves, capitalized interest, and debt issuance costs, is estimated at $234,870,000. Such amount to be levied is an estimate, as permitted under Section 11-42-401 of the Act. If the District issues less than the full amount of Assessment Bonds (defined herein) or the Assessments are not sufficient in amount to complete the Improvements and pay related costs as described above, the Owners shall be responsible to pay the remaining amount in order to complete the Improvements, including through funds or debt of such Owners. However, the District does not guaranty such payments from the Owners. Therefore, if for any reason the Owners do not pay such remaining amount to complete the Improvements, any and all property owners within the Assessment Area shall be responsible for paying any pro-rata share of additional costs required to complete the Improvements, including, but not limited to, an additional assessment on their property without any ability to contest such assessment.
Section 3. Approval of Assessment List; Findings. The Board confirms and adopts the assessment list for the Assessment Area, a copy of which is attached hereto as Exhibit A and incorporated herein by reference (the 'Assessment List'). The Board has determined that the Assessments are levied according to the benefits to be derived by each property within the Assessment Area and, in any case, the Owners have consented to such methodology as provided in Section 11-42-409(5) of the Act.
Section 4. Levy of Assessments. The Board does hereby levy an Assessment against each parcel of property identified in the Assessment List. Said Assessments levied upon each parcel of property therein described shall be in the amount set forth in the Assessment List, provided that initially the Assessments shall initially be allocated against the entirety of the legal descriptions for each Assessment Zone (defined herein). The amount of Assessments levied upon each parcel of property in the Assessment Area reflects an equitable portion of the benefit each parcel of property will receive from the Improvements and, in any case, the Owners have consented to such methodology as provided in Section 11-42-409(5) of the Act.
Section 5. Amount of Total Assessments. The Assessments do not exceed in the aggregate the sum of: (a) the estimated contract price of the Improvements (plus related capitalized soft costs); (b) the estimated acquisition price of the Improvements; (c) the reasonable cost of (i) utility services, maintenance, and operation to the extent permitted by the Act and (ii) labor, materials, or equipment supplied by the District, if any; (d) the price or estimated price of purchasing property; (e) overhead costs not to exceed fifteen percent (15%) of the sum of (a), (b), and (c); (f) an amount for contingencies of not more than ten percent (10%) of the sum of (a) and (c); (g) estimated interest on interim warrants and bond anticipation notes issued to finance the Improvements, if any; (h) an amount sufficient to fund a reserve fund; and (i) the capitalized interest on each assessment bond.
Section 6. Method and Rate. All benefited properties within the Assessment Area will be assessed for all of the above-described improvements and will initially be assessed as follows: (a) for the structured parking properties (the 'Parking Zone'), pursuant to a per square foot of structured parking method of assessment (the 'Parking Methodology'); (b) for the golf course properties (the 'Golf Zone'), on a per acre methodology (the 'Acreage Methodology'); and (c) for the residential and related properties (the 'Residential Zone' and together with the Parking Zone and the Golf Zone, each an 'Assessment Zone' and collectively, the 'Assessment Zones'), pursuant to an equivalent residential unit ('ERU') methodology (the 'ERU Methodology'), each as further described below:
Parking Zone
Assessment Assessment Methodology Anticipated Total S.F. Assessment Per S.F. of Structured Parking
$34,650,000.00 Parking Methodology 513,291 $67.51
Golf Zone
Assessment Assessment Methodology Total Acres Assessment Per Acre
$17,600,000.00 Acreage Methodology 40.88 $430,528.38
Notice of Special Accommodations (ADA)
The District complies with the Americans with Disabilities Act by providing accommodations and auxiliary communicative aids and services for all those in need of assistance. Persons requesting these accommodations for public meetings should call Jennifer Gowans at 435-628-3688 at least 24 hours before the meeting.
Notice of Electronic or Telephone Participation
Unless otherwise noted in the posted Agenda, meetings of the Board of Trustees will be held in person. For meetings held via videoconferencing or telephonic communication Trustees and other meeting participants and attendees will be able to participate remotely. Persons requesting video conference or telephonic accommodations for public meetings should call Jennifer Gowans at 435-628-3688 to make arrangements.