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.