Key provisions of the School Impact Mitigation Agreement

Complete copies of key documents establishing Modesto’s Mello-Roos school taxing district in Village I are posted on www.modbee.com.

Here are highlights of some of the key provisions:

School Impact Mitigation Agreement

Signed Nov. 15, 1994 by the city of Modesto, the Building Industry Association of Central California, the Sylvan Union School District and the Modesto High School District.

“The plan provides for the development of up to 8,000 residential units in Village cq One. To serve the students generated by those residences, the plan calls for the development of three elementary schools, one middle school and one high school.”

“The purpose of this agreement is to completely and finally resolve all school impact fee issues for Village One …”

“The provisions of this agreement shall govern in the event of a conflict between any provision of the Village One financing plan and this agreement.”

“The districts shall take whatever steps they deem necessary to form a Mello-Roos community facilities financing district (CFD) consistent with the terms and provisions of this school facilities element of the financing plan, to finance construction of the Village One school facilities.”

“The precise amounts and distribution of the annual special tax have not yet been determined, but the total amount of Village cq One school facilities funded will not exceed $52,735,600 (1994 dollars). The annual special tax may escalate at the rate of 2 percent per year.”

“… the CFD shall not materially differ from the provisions outlined herein.”

“The (Sylvan and Modesto school) districts further agree to use their best efforts to secure funding from the state of California school building program, and any other programs which may hereafter make funds available to local school districts for facilities construction to reduce the annual special tax for properties in Village One. Should funds be received from the state for school facilities construction in Village One, the annual special tax obligation of properties in Village One shall be reduced in proportion to the ratio of the state contributions to the total school facilities construction budget on which the annual special tax was based.”

“Should the districts receive state funds (the ‘replacement funds’) for construction of either or both of those particular schools, the annual special tax obligation for properties in Village One shall be proportionately reduced based on the ratio of the amount of replacement funds received times the Village One share of that school to the total school facilities construction budget on which the annual special tax was based.”

“The provisions of this agreement shall remain in effect and be binding upon the parties regardless of the provisions of existing and future state law regarding the mitigation of school impacts.”

“This agreement may be amended only by a writing executed by the parties hereto.”

Joint Powers Agreement between the Modesto High School District and the Sylvan Union School District

Signed Oct. 11, 1994 to create the School Infrastructure Financing Agency

“… the agency shall be a public entity separate from the (school) districts. The debts, liabilities and obligations of the agency shall not constitute debts, liabilities or obligations of the districts.”

“Exhibit A of this agreement … with its cost estimates (including assumptions for cost inflation), shall provide the basis for establishing the budget for each component of the project. To the extent that the number of housing units included within the CFD is increased beyond the numbers shown in Exhibit A, the funding allocated to the appropriate elementary school and to the middle and high schools shall be proportionately increased. To the extent any projects are completed for less that the amount budgeted, or alternate funding is available, the board may budget subsequent projects at higher levels, provided adequate justification of the added costs can be documented.”