The Town of Marana (“Town”) adopted a new CFD policy (“Policy”) at its regular Council Meeting on June 4, 2019.
The highlights of the Policy include:
A. Two Tiered CFD Structure
- Standard Infrastructure CFD – To be used for development projects that do not have large regional infrastructure items. In this instance the preferred financing source will be General Obligation Bonds.
- Extraordinary Public Infrastructure CFD – To be used for projects that have large regional infrastructure items.
- a. Extraordinary CFD’s will have the ability to use both General Obligation Bonds and Special Assessment Bonds.
- b. Extraordinary Public Infrastructure includes: Traffic Interchanges, water reclamation facilities, water treatment campuses and similar regional infrastructure.
B. Increase in the General Obligation Bond Authorization period from 7 years to 15 years or 75% development of lots.
C. CFD Application Fee of $15,000 and $50,000 deposit.
D. Requirement for the maintenance of $100,000 in cash or letter of credit to fund operations and maintenance costs until such time as the $0.30 operations and maintenance tax exceeds $100,000 per year.
E. Requirement that Applicant fund $2 million of coverage for CFD Directors and Officers Insurance.