Marana Adopts a New CFD Policy

The Town of Marana (“Town”) adopted a new CFD policy (“Policy”) at its regular Council Meeting on June 4, 2019.

2019 Amended CFD Policy FINAL

The highlights of the Policy include:

A. Two Tiered CFD Structure

  1. 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.
  2. 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.