GRAPEVINE WASH LOCAL DISTRICT ASSESSMENT ORDINANCE
Notice Tags
Ordinances
Notice Type(s)
Notice
Event Start Date & Time
July 2, 2024 05:03 PM
Description/Agenda
ASSESSMENT ORDINANCE
WHEREAS, the Board of Trustees (the 'Board') of the Grapevine Wash Local District
(the 'District'), adopted Resolution No. 2024-01 on June 25, 2024 (the 'Authorizing Resolution'),
pursuant to which the Board authorized and approved the form of this 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 Grapevine Wash Assessment Area No. 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 '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 345-acre residential and commercial development
(the 'Development'). The District plans to issue Limited Tax General Obligation Bonds (the
'Limited Tax Bonds') to finance a portion of the improvements within the Development and levy
the assessments to finance the remainder of the Improvements within the 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:
the acquisition, construction, and operation of parks or recreation facilities or
services; the acquisition, construction, and operation of a system, or one or more
components of a system, or one or more components of a system, for the collection, storage,
retention, control, conservation, treatment, supplying, distribution, or reclamation of water,
including storm, flood, sewage, irrigation, and culinary water the construction and
maintenance of rights-of-way, for curb, gutter, sidewalk, street, road, water, sewage, storm
drain, electricity, communications, and /or natural gas improvements within the District,
together with necessary facilities, appurtenances, and equipment, therefore.
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
4882-4887-9289, v. 5 2
WHEREAS, the District now desires to confirm the assessment list and to levy said
Assessments in accordance with this Ordinance:
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
GRAPEVINE WASH LOCAL 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) 'Assessment Bonds' means the assessment bonds anticipated to be issued
by the District for the Assessment Area, which may be issued in one or more series (or any
bonds which refund the same).
(b) '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.
(c) '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.
(d) 'Homeowner' means the purchaser of a completed residential unit. For the
avoidance of doubt, the business entity that constructs homes is not a homeowner.
(e) 'Indenture' means the indenture(s) of trust and pledge under which the
Assessment Bonds are issued.
(f) '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).
(g) 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.
4882-4887-9289, v. 5 3
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 $69,714,027 of which
$55,333,000 shall be assessed within the Assessment Area. Such amount to be levied is an
estimate, as permitted under Section 11-42-401 of the Act. The Owners anticipate using additional
funding in order to complete the Improvements. If the Assessments and additional funding 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.
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 currently anticipated amount of
Assessments expected to be levied upon each Assessment Zone and the number of ERUs (defined
herein) or acreage, as applicable, anticipated to be allocated to each parcel of property in the
Assessment Area (upon compliance with the process and coverage described herein) 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
Notice of Special Accommodations (ADA)
In compliance with the Americans with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify Brian Hickman at 435-632-8200.