City Council
MEETING DATE: 3/11/2015
TITLE:
Title
Statewide Community Infrastructure Program ("SCIP")
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council receive the presentation, discuss and provide direction.
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BACKGROUND:
Consistent with City Council established goal of identifying ways to establish assessment district(s) to provide necessary infrastructure in the North City and Extended North City planning areas, the Council is being asked to consider the potential adoption of a resolution to participate the Statewide Community Infrastructure Program ("SCIP"), which is a program of the California Statewide Communities Development Authority (the "Authority"). The Authority is a joint powers authority sponsored by the League of California Cities (the "League of Cities") and the California State Association of Counties ("CSAC"). Membership in the Authority is open to every California City, County and local agency, and most are already members. Currently, the member agencies of CSCDA include approximately 372 cities and 56 counties, including the City of Cathedral City (the "City").
SCIP financing is available for development projects ("Projects") situated within cities or counties which have elected to become SCIP participants (each, a "Local Agency"). Eligibility to become a Local Agency requires only (a) membership in the Authority, and (b) adoption of a resolution making the election (the "SCIP Resolution").
DISCUSSION:
Participation in SCIP entails the submission of an application (an "Application") by the property owner (the "Applicant") of a Project for which development entitlements either have been obtained or are being obtained from a Local Agency. For Projects determined to be qualified, SCIP provides non-recourse financing of either (a) eligible development impact fees payable to the Local Agency (the "Fees") or (b) eligible public capital improvements (the "Improvements") or both. Under certain circumstances, to be determined on a case by case basis, development impact fees payable to local agencies other than the Local Agency can be financed.
Applicants benefit from SCIP because it allows them to obtain low-cost, long-term financing of Fees and Improvements, which can otherwise entail substantial cash outlays. The Local Agencies benefit from SCIP because it encourages developers to pay Fees sooner and in larger blocks than they otherwise would. The availability of low-cost, long-term financing also softens the burden of rising Fee amounts and Improvement costs, benefiting both the Applicants and the Local Agencies.
Adopting a resolution for the City to participate in the SCIP program allows CSCDA to accept applications from owners of property within our planning jurisdiction to apply for tax-exempt financing of public capital improvements and development impact fees through SCIP. It also authorizes CSCDA to form assessment districts within our City's boundaries, conduct assessment proceedings and levy assessments against the property of participating owners.
If Council is interested in participating, a resolution will be placed on a future agenda for adoption.
FISCAL IMPACT:
Other than staff time, no cost to the City.
ATTACHMENTS:
Presentation
Developer Application