For the first time in Glendale's history, the City Council on Tuesday agreed to issue tax-exempt bonds for financing streets and other public improvements in the largest residential subdivision ever undertaken.
Council members unanimously endorsed a proposal to issue about $29 million in tax-exempt bonds to pay for construction of streets, sewers and flood-control channels in the Rancho San Rafael subdivision, a 316-acre development to be built east of Mountain Street between the Glendale Freeway and Chevy Chase Drive.
The developers, Homes by Polygon of Costa Mesa and the S. T. MacDonald family of Montrose, said the lump sum provided by the bond sale will allow grading and construction of the 542-unit development to be done faster if the project were privately financed.
Assessments to Be Levied
Assessments will be levied against individual lots and will average $40,000, developers said.
The bond financing will be repaid over a period of years by homeowners in the subdivision as part of their property taxes. Individual lots will serve as collateral for the loan, with no liability against the city, officials said.