Stockton moves to form South Stockton financing district and approves pre‑zoning for Mariposa Industrial Park parcels

Stockton’s City Council voted unanimously Sept. 17 to begin the two‑step process to form Community Facilities District (CFD) 2024‑1, a special taxing district intended to fund new fire facilities and paramedic services in the South Stockton area and the Mariposa Industrial Park.

The council adopted a resolution of intent that would allow the city to levy a facilities special tax and a services special tax within the district and to later incur bonded indebtedness up to a maximum of $50,000,000 to finance public facilities. Ken Deaker of Del Rio Advisors, the city’s municipal advisor, told the council the CFD is the "first of a two‑step process" and that the district would initially cover the Mariposa Industrial Park with a larger annexation area to be added as development occurs.

Under the proposal presented, the maximum annual facilities special tax would be $650 per acre (escalating 2% annually while bonds are outstanding). The maximum annual services special tax would begin at $1,637 per acre and could escalate by up to 4% per year; staff said service taxes would remain in place in perpetuity to support operating costs for fire and paramedic services.

City staff and the municipal advisor said bond issuance is contingent on future development and land annexations; staff also noted the resolution being considered is a resolution of intent and that a public hearing on formation is scheduled for Nov. 12, when the council will consider formation, issuance of debt and related proceedings.

Fire Chief Rick Edwards answered council questions about deployment, saying the first new station would likely be located between Highway 99 and Airport Way along the Arch Road corridor to meet desired four‑minute response times, although a final site has not been selected. "We've looked at this in‑depth," Edwards said. "To meet our four‑minute response times, we know that the first firehouse would be somewhere between 99 and Airport Way along the Arch Road corridor."

The CFD is intended to fund construction and acquisition of infrastructure, including one or more fire stations, and to help reduce service times to that portion of the city. Staff noted the Mariposa Industrial Park already includes a large distribution tenant and proposed additional industrial development; the parcel additions considered will not expand the project’s previously approved 3.6 million square‑foot cap.

Council members from across the dais expressed support for reinvestment in South Stockton and the proposal passed 7‑0. The council received a commitment that all mitigation measures from the certified EIR for the industrial park would continue to apply to the new parcels being incorporated.

Next steps: the council will hold a public hearing on Nov. 12, 2024, to consider formation of the district, and any future bond issuance would depend on development and subsequent actions by the council.