Great Park Community Facilities Districts (CFDS)
Community Facilities Districts (CFDs)
In 2013, Heritage Fields El Toro, LLC and the City of Irvine worked in partnership to form CFD 2013-3, which encompasses the Great Park and the Great Park Neighborhoods. The CFD is an important source of funding for the substantial costs involved in converting the former El Toro Marine Corps Air Station to a new community. CFDs are a common way for developers to raise funds for development and often involve selling bonds and using a special tax to repay those bonds over time.
The majority of the CFD funding is devoted to building specified backbone infrastructure – streets, traffic signals, bike lanes, sidewalks, utilities, sewer lines, storm drains, parks, and recreational trails – that residents use on a daily basis. Portions of the CFD funding have also been designated to assist with the development of the Great Park, and to provide for ongoing maintenance costs for the Great Park.
Will the CFD charge increase?
The CFD charge can increase by up to 2% per year, based on increases in property values, similar to property taxes. Future bond sales that may be needed to raise funds for certain future public improvements in the Great Park Neighborhoods or the Great Park will not increase the charge.
How long will the charge continue?
The CFD has two responsibilities: repaying the original bonds and providing funding to maintain the public improvements, including the Great Park. Once the original bonds are repaid, which typically takes 40 years, the charge that property owners pay will be reduced by between approximately 65% and 82%, with the remaining tax continuing in perpetuity to provide maintenance funding.
What has the CFD funded?
Each year the City issues a report showing the activity of the CFD, including how much money was collected, where it was spent and how much debt remains. The reports and additional information may be found here:
