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APPROVAL OF A JOINT COMMUNITY FACILITIES AGREEMENT WITH THE COUNTY OF SAN JOAQUIN AND CATELLUS STOCKTON, LLC FOR COMMUNITY FACILITIES DISTRICT NO. 2009-01 (AIRPARK 599)
recommended action
RECOMMENDATION
Adopt a resolution approving and authorizing the City Manager to execute a Joint Community Facilities Agreement (JCFA) with the County of San Joaquin (County) and Catellus Stockton, LLC (Developer) to facilitate financing, construction, and acquisition of public infrastructure improvements within Community Facilities District (CFD) No. 2009-1 (Airpark 599)
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Summary
Airpark 599 is an approximately 275-acre industrial warehouse and distribution center project with a small commercial component adjacent to the Stockton Metropolitan Airport (Attachment A - Site Plan). This public/private partnership involves the County of San Joaquin (the "County"), the City of Stockton (the “City”) and Catellus Stockton, LLC (“Developer”).
The proposed Joint Community Facilities Agreement Exhibit 1 to the Resolution) establishes a framework for financing, construction, acquisition, and ownership of public infrastructure improvements within the County of San Joaquin Community Facilities District No. 2009-1 (Airpark 599). The agreement enables the Community Facilities District to finance certain City of Stockton (City) and County infrastructure using special tax revenues or bond proceeds pursuant to the Mello-Roos Community Facilities Act of 1982.
The agreement outlines roles and responsibilities of the City, County, and Developer related to infrastructure construction, financing, ownership, and maintenance. Approval of the agreement supports infrastructure development necessary for planned growth within the Airpark area while limiting the City’s financial liability.
DISCUSSION
Background
The County of San Joaquin established Community Facilities District No. 2009-1 (Airpark 599) (CFD) to finance public infrastructure improvements through special taxes and potential bond issuance under the Mello-Roos Community Facilities Act (“Act”).
The Act further provides that at any time prior to the adoption of a resolution authorizing issuance of bonds, the legislative bodies of two or more local agencies may enter into a joint community facilities agreement (JCFA) to exercise any power authorized by the Act, in this case allowing CFD No. 2009-1 to finance facilities owned or operated by the City. The JCFA must be executed via the adoption of a resolution by both parties (County and City) declaring that such a joint agreement would be beneficial to the residents of that entity. The San Joaquin County Board of Supervisors adopted Resolution R-25-169: Authorizing the Execution and Delivery of a Joint Community Facilities Agreement (Attachment B) on December 9, 2025.
The Developer, Catellus Stockton, LLC, is developing property within the CFD boundaries and will construct certain public infrastructure improvements, including water and wastewater facilities, that will ultimately be owned and operated by the City upon acceptance.
Present Situation
Agreement Purpose
The Joint Community Facilities Agreement establishes the terms under which:
• The CFD may issue bonds or use special tax proceeds to finance public facilities.
• The Developer constructs certain public infrastructure improvements.
• The City and County accept ownership and maintenance responsibilities for their respective facilities.
• District funds may reimburse eligible infrastructure costs.
City Facilities
The agreement provides for construction and acquisition of City infrastructure, including:
• Water system improvements (estimated $6.6 million).
• Wastewater/Sanitary Sewer improvements (estimated $2.0 million).
The Developer constructs the facilities in compliance with City standards, and the City accepts the facilities following inspection and verification of costs.
Financing Structure
• Infrastructure may be financed through CFD special tax revenues or bond proceeds.
• The County, acting as the CFD legislative body, retains sole discretion regarding bond issuance and allocation of proceeds.
• The City cannot compel bond issuance or funding.
• Payments to the Developer occur only from available district proceeds.
• The City bears no responsibility for bond debt service or special tax obligations
Ownership and Maintenance Responsibilities
• City facilities become City property upon acceptance and are operated and maintained by the City.
• County facilities remain owned and maintained by the County.
• Each agency is responsible only for its respective facilities.
Risk Allocation and Liability
• The City has no liability for CFD debt or bond obligations.
• The agreement includes mutual indemnification provisions between the City and County.
• Developer costs are reimbursed only from available district funds.
ENVIRONMENTAL REVIEW
Approval of the agreement is an administrative action related to financing and infrastructure delivery and does not constitute a project under CEQA or is otherwise covered by prior environmental review associated with the development.
FINANCIAL SUMMARY
Approval of the agreement does not obligate the City’s General Fund for infrastructure costs. Payments for City facilities are limited to available CFD proceeds. The City may incur future operational and maintenance costs associated with accepted infrastructure improvements. The City may charge administrative fees related to agreement implementation.
Attachment A - Airpark 599 Site Plan
Attachment B - Resolution R-25-169 County Board of Supervisors