In October of 2020, Council approved the petition of Lennar Carolinas, LLC, ("Lennar") to create the Roselyn Residential Improvement District (RID) via Resolution 1117-R2020. Then in December of 2020, Council authorized the creation of the Roselyn RID, implementation of the Improvement Plan, the finance of improvements within the district, the issuance of bonds, and approved the assessment roll via Ordinance 2020-1691. Lennar Carolinas, LLC, is now petitioning the County to issue the bonds.

Lennar, the primary land owner within the District, has requested the County to issue the New Bonds, the proceeds of which would be used (1) to finance the cost of the New Project, potentially including capitalized interest on the New Bonds, (2) to fund a Debt Service Reserve Account for the New Bonds, and (3) to pay costs of issuance related to the New Bonds.

The New Bonds that Lancaster County is being asked to issue would be not to exceed $15,000,000 principal amount Roselyn Residential Improvement District Assessment Revenue Bonds.  The New Bonds are anticipated to be issued in the first quarter of 2023.

The Engineer's Report attached to the agenda provides information concerning Lennar's  probable cost of development for Phases I and II of the Roselyn Development.  The Engineer's report also projects the progress to completion and the projected completion dates of infrastructure included in the Series 2022 Project Budget as of September 30, 2022.  As of the date of first reading, Lennar has spent approximately $30,720,275 towards land development activity associated with Phases I and II of the Development (including common area costs that benefit the entire Development). Of that amount, Lennar has incurred approximately $20,084,662 in costs associated with the planning, engineering, permitting, and construction of the public infrastructure in Phases I and II of the Development and such common are costs (defined throughout as the  "Series 2022 Project").  According to the Engineer’s Report, the estimated total cost of the infrastructure included within the Series 2022 Project is approximately $50,507,845.

The County and Lennar will enter into an Acquisition and Project Funding Agreement (the “Project Agreement”), at the time of issuance of the New Bonds, which provides the procedures for the payment of the costs of the Series 2022 Project. Under the Project Agreement, Lennar has agreed to complete any portions of the Series 2022 Project not funded with proceeds of the New Bonds. The County will acquire the components of the Series 2022 Project in accordance with its standard procedures for the dedication of the applicable types of infrastructure. The County will only disburse the proceeds of the New Bonds to pay costs of identifiable components of the Series 2022 Project that have been fully accepted by the County, and Lennar has provided documentation showing the costs of such components.

 The principal and interest payments on the New Bonds (after the initial capitalized interest period) and budgeted Administrative Expenses will be paid by assessments upon the homes in the Development and on undeveloped property owned by Lennar.  Lennar anticipates that the yearly assessment billed to any homeowner will not exceed $1,550 per home; as the owner of undeveloped property, Lennar will be billed a yearly assessment equal to the difference between (1) the annual principal and interest payments on the New Bonds and budgeted Administrative Expenses and (2) the annual assessments billed to homeowners.  Lancaster County is not responsible for payment of the New Bonds. 

Not Applicable

Administration recommends approval of the Ordinance.