(A) In addition to the amounts set forth in § 6-9-4(B), upon formation of a PID the developer/ landowner shall deposit with the PID a nonrefundable administrative expense fee in the amount of $15,000. The administrative expense fee shall be applied by the PID to the costs and expenses incurred in connection with the formation, review of any feasibility study, election costs, administration, operation and maintenance of the PID or its public improvements. From time to time, upon depletion of the administrative expense fee, the PID may request, and the developer/landowner shall promptly deposit with the PID, additional amounts deemed by the City to be necessary for the purposes contemplated in this § 6-9-5(A).
(B) In order to provide for the PID to be self-supporting for its administrative, operation and maintenance expenses, and to finance services in addition to those provided by the City, the City and the PID, unless otherwise agreed, may require the imposition of up to $3.00 per $1,000 of assessed value ad valorem tax, not as a tax or charge of the City, but in accordance with the provisions of Section 5-11-23 NMSA 1978, as amended, upon the PID taxable property, for the administration of the PID, and the operation and maintenance of property which is not City-owned infrastructure otherwise maintained by the City. Failure to impose such tax shall not impose upon the City any obligations for operations.
(C) The amount and structure of debt of a PID shall not have any direct or indirect negative impacts on the debt or financing capabilities of the City. The debt imposed on the PID shall not impose an unreasonably high financial burden on any future property owners in the PID. Any debt issued shall be in accordance with the provisions of § 6-9-1(G) ROA 1994. In connection with any request for debt financing the applicant shall provide a current appraisal (subject to update to remain current at the time of any debt financing) of the fair cash market value of the property within the proposed PID which shall be taxed, assessed or levied upon, prepared by an MAI Appraiser, such appraisal to be in form and substance acceptable to the City, in its sole and absolute discretion. All requested debt financings shall be reviewed by the City Debt Committee.
(D) General obligation bonds of the PID shall be payable from an ad valorem tax on all taxable property located within the PID. An applicant for general obligation bonds shall describe in each financial feasibility study required in § 6-9-3(E) ROA 1994, the following:
(1) The current direct and overlapping tax and assessment burden on the taxable property that is proposed to be taxed and the full cash value and assessed valuation of the taxable property as shown on the most recent assessment roll.
(2) The amount and timing of PID general obligation bonds to be issued.
(3) The expected market absorption of development within the PID.
(4) The effect of the PID bond issuance on PID tax rates, calculated at the beginning, middle and end of the market absorption period or based on the phasing of the project to be financed, as applicable.
(5) Whether the bonds shall be publicly offered or privately placed. Publicly offered bonds shall either (i) be rated (either on their own merits or by use of appropriate credit enhancement) in one of the four highest investment grade ratings from Standard & Poor's Ratings Group, Moody's Investors Service, Inc., Fitch Ratings, or other nationally recognized bond-rating services, or (ii) be issued in connection with a transaction which meets all of the following criteria unless otherwise determined by the City, in its discretion, based upon recommendations made by underwriters or financial consultants acceptable to the City:
(a) the minimum equity contribution, excluding real property, of the developer is at least 20% of the initial cost of the project;
(b) the projected value to lien ratio, after the completion of the improvements constructed with bond proceeds, shall be at least 4 to 1, but in no event and notwithstanding any other provision of this section, less than 3 to 1; and
(c) the developer and the PID shall enter into an appropriate contribution agreement, which may require a letter of credit or other third-party guarantee of the bonds by the developer.
Privately placed bonds need not be rated; however, the purchasers of such bonds must be "qualified institutional buyers" (as such term is defined in Rule 144A of the Securities Exchange Commission) and must agree not to resell the bonds except to "qualified institutional buyers" in a private placement.
If appropriate, the applicant shall enter into a "Continuing Disclosure Undertaking" (as required by Rule 15c2-12 of the Securities Exchange Commission) or relating to the issuance of the bonds.
(E) Special levy bonds shall be secured by a tax lien on the property benefitted. Applicants for special levy bonds shall describe in each financial feasibility study as required by § 6-9-3(E) ROA 1994, the following:
(1) The current direct and overlapping tax assessment burdens and special levy on real property to comprise the PID and the full cash value and assessed valuation of that property as shown on the most recent assessment roll.
(2) The amount and timing of PID special levy bonds to be issued.
(3) The expected market absorption of development within the PID.
(4) The special levy burden to be placed on the prospective assessed parcels.
(5) Whether the bonds shall be publicly offered or privately placed. Publicly offered bonds shall either (i) be rated (either on their own merits or by use of appropriate credit enhancement) in one of the four highest investment grade ratings from Standard & Poor's Ratings Group, Moody's Investors Service, Inc., Fitch Ratings, or other nationally recognized bond-rating services, or (ii) be issued in connection with a transaction which meets all of the following criteria unless otherwise determined by the City, in its discretion, based upon recommendations made by underwriters or financial consultants acceptable to the City:
(a) the minimum equity contribution, excluding real property, of the developer is at least 20% of the initial cost of the project;
(b) the projected value to lien ratio, after the completion of the improvements constructed with bond proceeds, shall be at least 4 to 1, but in no event and notwithstanding any other provision of this section, less than 3 to 1; and
(c) the developer and the PID shall enter into an appropriate contribution agreement, which may require a letter of credit or other third-party guarantee of the bonds by the developer.
Privately placed bonds need not be rated; however, the purchasers of such bonds must be "qualified institutional buyers" (as such term is defined in Rule 144A of the Securities Exchange Commission) and must agree not to resell the bonds except to "qualified institutional buyers" in a private placement.
If appropriate, the applicant shall enter into a "Continuing Disclosure Undertaking" (as required by Rule 15c2-12 of the Securities Exchange Commission) relating to the issuance of the bonds.
(F) Revenue bonds shall be payable from a PID revenue source. An applicant for revenue bonds shall describe in each financial feasibility study as required in § 6-9-3(E) ROA 1994, the following;
(1) The current direct and overlapping tax and assessment burdens on the property within the PID and the full cash value and assessed valuation of that taxable property as shown on the most recent assessment roll.
(2) The revenue source from which bonds shall be payable. The City reserves the right to require the applicant to produce such independently prepared feasibility studies or reports as it deems necessary to confirm the amount and availability of revenues.
(3) The expected market absorption of development within the PID.
(4) The amount and timing of PID revenue bonds to be issued.
(5) The financial impact of the proposed issue(s) on prospective property owners.
(6) Whether the bonds shall be publicly offered or privately placed. Publicly offered bonds shall either (a) be rated (either on their own merits or by use of appropriate credit enhancement) in one of the four highest investment grade ratings from Standard & Poor's Ratings Group, Moody's Investors Service, Inc., Fitch Ratings, or other nationally recognized bond-rating services, or (b) be issued in connection with a transaction which meets all of the following criteria unless otherwise determined by the City, in its discretion, based upon recommendations made by underwriters or financial consultants acceptable to the City:
(a) the minimum equity contribution, excluding real property, of the developer is at least 20% of the initial cost of the project;
(b) the projected value to lien ratio, after the completion of the improvements constructed with bond proceeds, shall be at least 4 to 1, but in no event and notwithstanding any other provision of this section, less than 3 to 1; and
(c) the developer and the PID shall enter into an appropriate contribution agreement, which may require a letter of credit or other third-party guarantee of the bonds by the developer.
Privately placed bonds need not be rated; however, the purchasers of such bonds must be "qualified institutional buyers" (as such term is defined in Rule 144A of the Securities Exchange Commission) and must agree not to resell the bonds except to "qualified institutional buyers" in a private placement.
If appropriate, the applicant shall enter into a "Continuing Disclosure Undertaking" (as required by Rule 15c2-12 of the Securities Exchange Commission) relating to the issuance of the bonds.
(G) The special levies imposed on real property in the PID shall be apportioned based on parcel size or front footage basis. The maximum allowable rate of special levy for property, however, shall not cause the total tax and assessment obligation for such property, including projected ad valorem taxes and special assessments, to exceed one and ninety-five one hundredths percent (1.95%) of the anticipated market value of property as determined by an MAI Appraiser. The 1.95% shall include unissued debt and any other anticipated fees or assessments which may be imposed by the City or special district on a property within the PID - i.e., special assessment districts, including the proposed maximum special levy, except service charges for utilities and refuse.
(H) Unless otherwise determined by the City, the City shall retain its own bond counsel to act as bond counsel in connection with the issuance of any PID bonds. From time to time the City may request from bond counsel such opinions as it deems necessary in connection with the formation and activities of the PID.
(Ord. 12-2003)