Montclair council establishes CFD for Village at Montclair, sets special tax to fund maintenance and public safety

The Montclair City Council voted to form Community Facilities District No. 2025-1, known as The Village at Montclair, to finance maintenance and public‑safety costs for a 330‑unit mixed‑use development on roughly 6.6 acres at Arrow Highway and Fremont Avenue.

Economic development director Mr. Fuentes told the council that the district would levy special taxes to fund maintenance of streets, park and landscaping, storm drains, street lighting, sidewalk and fountain maintenance, and a portion of police and fire costs attributable to the development. "The total amount that will be levied on the CFD is $143,500," Mr. Fuentes said, adding a $15,000 administrative fee for annual reporting and tax‑roll processing that brings the estimated annual program cost to about $158,500.

Why it matters: Council members said the levy will cover recurring costs the city would otherwise need to absorb as the project brings new public infrastructure and service demands. Staff said the special taxes will begin in fiscal year 2025–26 and that annual increases are capped at a maximum of 6% with a minimum 2% escalation built into the rate documentation.

The project: Staff described The Village at Montclair as a mixed‑use development with about 330 apartment units, roughly 25,000 square feet of ground‑floor commercial space and a two‑acre public park located within the North Montclair Downtown Specific Plan. The owner was identified as CRP/VP Montclair Village; Don Henry, an ownership representative, was in the council chamber and answered council questions.

Apportionment and owner request: The property owner requested that special taxes be apportioned by parcel/acre rather than by building square footage; staff made that change in the revised exhibits and said it did not alter the maximum special tax calculations.

Affordability and payment flow: Council members raised concerns that CFDs add to housing costs and could affect affordability. Don Henry described how the levy is an operating expense of the property: "It is built into our expenses," he said, and staff explained that those costs are ultimately recovered from property income and market rent rather than billed directly as an HOA fee.

Votes at a glance: The council moved to adopt the staff recommendations and conducted electronic votes on the CFD resolutions. Resolution No. 25‑3471 establishing CFD No. 2025‑1 was adopted by a recorded vote of 4–1. Resolution No. 25‑3472 (calling a special election and submitting the proposition for the annual levy) and Resolution No. 25‑3473 (declaring the results of the special election) were adopted unanimously. The council conducted a first reading of Ordinance No. 25‑10111 levying the special taxes by title and set a second reading and public hearing for March 17, 2025, at 7 p.m. in council chambers.

Financial details and limits: Staff said the proposed levy would be split among five taxable parcels (totaling about 3.36 taxable acres), with two city‑owned parcels (the future park and a parcel intended for a public parking structure) exempt from the special tax. Staff estimated the maximum annual levy on the project at roughly $160,000 and calculated that, averaged across the 330 units, the impact would be about $36 per unit per month.

What happens next: The council scheduled the ordinance second reading for March 17, 2025, at which time it will consider adoption of the levy ordinance. Staff also provided revised exhibits and the amended rate and method of apportionment to the council and public.