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1984-0807_BANK OF AMERICA_I1a_Agenda ReportAGENDA ITEM August 7, 1984 TO: Stephen B. Julian, City Manager FROM: W. D. Murphy, Director of Public Works SUBJECT: Agreement With Bank of America For Private Funding of Assessments For Tract 11765 - (Fredricks) SITUATION Staff is requesting approval of an agreement with the Bank of America to partially fund the assessment payments within Tract 11765 for the Ortega Properties Assessment District (AD 78-3.) The purpose of the agreement is to establish an escrow whereby the properties in Tract 11765 have their annual assessments reduced to $200. The escrow provides that the Bank of America shall provide the City with a sufficient payment to cause the assessment reduction by July 1 of every year. Upon receipt of the payment the City will notify the tax assessor of the assessment of $200. The situation which requires the agreement arose from information provided to the homebuyers of Tract 11765. It appears that the buyers were informed that their annual assessments would be approximately $200. In reality, the assessments are in excess of $1,000 per year. Fredricks Development Corp., the developer of Tract 11765 has entered into an agreement with the property owners and deposited funds with the Bank of America in the subject escrow. Copies of these documents are available in the Public Works Department offices. COMMISSIONS/BOARDS, REVIEW, RECOMMENDATION No applicable FINANCIAL CONSIDERATIONS No City funds are involved in the agreements or escrow. The Bank of America must provide funds by July 1 of every year or the City shall provide the assessor with the full amount of the assessment. Fredricks Development have provided a check in the amount of $35,199 to fund this year as the escrow has not been opened in July. FOR C0'Y ,(',0 lNCIL AGENDA ..�J Iia 0 Tract 11765 (Fredricks) ALTERNATE ACTIONS 1. Approve the agreement. -2- 2. Do not approve the agreement. 3. Require further information from Staff. RECOMMENDATION Fi August 7, 1984 By motion, approve the letter agreement with Bank of America dated July 26, 1984, "Holding Escrow #1020-5485; Fredricks Development Corporation, Assessment District No. 78-3 (Ortega Properties)" and authorize the Mayor and City Clerk to execute the agreement. Respectfully submitted, �J.i�o�� W. D. Murpkiy \ WDM:GML/rem Encl.