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Board approves Shea Homes mitigation agreement and annexation resolutions to repay district fronted funds for Costa Elementary
Summary
Board approved a school facilities mitigation agreement with Shea Homes and two resolutions annexing new-home projects into district Community Facilities Districts to enable reimbursement of an $18 million fronted construction cost.
District staff described a multi-year negotiation with developers to recover $18 million the district fronted to complete Costa Elementary School construction. Staff said the district negotiated three mitigation agreements: Pulte (previously approved), Shea Homes (recommended today), and a pending successor of interest (KB Homes) to complete reimbursement across projects.
"The district essentially subsidized the final $18,000,000 of the construction at Costa," staff said, and recommended approval of a mitigation agreement with Shea Homes and annexation into Community Facilities District (CFD) 2024-1 so the district can collect pro rata reimbursements and interest indexed to Marshall & Swift. The staff report described Pulte as a 286-unit project and Shea as 266 units; when combined with the other project(s), staff said the district expects to recover the fronted funds plus interest.
Trustee Pambo moved approval of the Shea Homes mitigation agreement; Trustee Daniel seconded and the motion carried with four ayes and one absence. The board subsequently approved two resolutions (25-26-004 and 25-26-005) to annex property into the district’s CFDs and to direct recordation of annexation notices and maps. A roll-call vote recorded Lisa Boulay, Vanita Daniel, Stephanie Olson and David Pombo voting Aye; the motion carried with one absent trustee.
The staff presentation noted that the County Public Works will cover costs for a related raised crosswalk project (separate agenda item) and recommended the board approve the contractual and recordation steps to secure reimbursement and bonding mechanisms.
