District Formation

The Next 100 Years plan (make that a link) calls for the SDC lands and buildings to be transferred into local Sonoma Valley control through the establishment of the Sonoma Mountain Community Services District, an “Independent Special District” formed under California State law. The creation of an Independent Special District will insure that the SDC property remains in local ownership for the long term. Perhaps most importantly, it will provide the foundation to allow the people of the Sonoma Valley, who care deeply about SDC, to have a direct say in its future now, twenty years from now, or even one hundred years from now. A local, independent special district keeps it local - and independent. (The last 3 sentences say exactly the same thing, which was also stated on the home page. And the first sentence could be part of the first page)

With a new District, the community will have special access to Community Finance District bond funds, grants and financing needed to work with other partners and developers. It will also help us take advantage of the special tax benefits that will accrue in the later years as the buildings are built, retrofitted and occupied. And, perhaps most importantly, if we are successful, it will provide the local community with autonomy and local control over the land and buildings long term.

AS a next major step, we will be circulating a petition beginning in January 2024, designed to demonstrate to the state that there is strong support in our community for the district.

With a strong show of support from registered voters in the District, the initial formation of the District will be accomplished through the same state legislation as will be needed to confirm the terms for the transfer of the SDC land and buildings to the District. Once the legislation is confirmed, the Organizing Committee will work through the Sonoma County Local Agency Formation Commission (LAFCO) to provide the registered voters in the District with the opportunity to decide on their own future at SDC by voting at a scheduled election to confirm the District and elect its initial five-member Board of Directors.

It is not anticipated that any new taxes will be needed once the District is in place. Financial analyses also show that the District will bring in sufficient revenues over time to support new public services outside of the SDC, including some that the county has been slow to provide over the years - bicycle and walking paths, open space acquisition, and even larger projects like a recreation center, town center, or other projects important to the community.

Financing once the District takes ownership of the SDC

Development financing at SDC is planned as follows:

The phases of an initial plan for financing the District are listed below. (to replace the above line?)

Negotiation

Funds will be used to negotiate the State legislation to form the District, agree on terms for Community Finance District (CFD) bonds, and manage negotiations with LAFCO for an election to authorize the District and elect its initial Board Members. Needed start up capital will come from a combination of donations, grants, and a bridge loan.

Start up and Initial Development

Funding will include $10M in CFD bonds to retire the bridge loan and to cover “warm start-up” management at SDC, install utilities, and pay for initial improvement costs in Years 2 - 4. Premiums to be paid out of revenues from land leases, rentals and proceeds from sales.

Master Planning

Work includes processing of a long term Master Plan for the SDC and negotiation of long-term management leases with the Land Trust and parks management agencies for the open space lands on Sonoma Mountain and near Lake Suttonfield, and to expand the wildlife corridor in the campus area.

Working with Developers

Design-Build-Finance-Manage (DBFM) contracts with experienced developers will produce $35M in capital improvements at no cost to District residents, including a mix of new infill construction and adaptive reuse of existing buildings for affordable housing and other village-related uses.

Build-out and Operations

$20M in Enhanced Infrastructure Financing District (EIFD) bonds will retire the CFD bonds from Phase 1. The EIFD bonds will be repaid over 45 years out of incremental property taxes from new development at SDC, and at no cost to residents of the District. On-site development is expected to exceed $385M, built sector-by-sector under the same DBFM process as in Phase 1. After build-out is complete, annual revenue flow can be used to sponsor public benefit investments in the District including open space consolidation on Sonoma Mountain, bicycle and hiking trails, area improvement plans, natural resource management, community facilities, historic preservation and interpretation, sponsorship of events, and more.

Note: The Next 100 Years proposal does not anticipate funding any residential or commercial development or renovation. Each will be funded separately by the partner-developer. As housing or commercial projects are needed, an RFP will be issued and the project financed and operated by the selected developer for each project.