Utility board approves agreement with East West | SierraSun.com
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Utility board approves agreement with East West

The Truckee Donner Public Utility District board of directors took the first step to find out whether or not it will approve the formation of a Mello Roos, or community facilities district in the proposed Old Greenwood and Gray’s Crossing developments.

The board passed an agreement, in four-to-one vote, to sign a $20,000 agreement with East West Partners, in which the developer will reimburse the cost of a feasibility study and district staff’s time. Director Pat Sutton voted no.

“It boggles my mind that a public agency would provide would provide the means for a developer to build,” Sutton said.



Attorney John Murphy, who aided the district with the Donner Lake Assessment District, drafted a reimbursement agreement between the district and East West Partners.

“The [public utility district] has not previously formed a community facilities district and wishes to study further the consequences of forming the district and issuing bonds before determining whether to commence proceedings for the formation thereof,” according to the adopted agreement.



At their Jan. 15 board meeting, the district held a workshop with East West Partners to discuss the formation of a Mello Roos District.

The Community Facilities District Act authorizes local governments and developers to create Mello Roos Districts for the purpose of selling tax-exempt bonds to pay for public improvements. Property owners in the special district pay a separate tax to repay the bonds.

Ordinarily, the Mello Roos must be passed by two-thirds of registered voters, who are landowners in the proposed district. However, in this case, East West Partners owns the land. So if the board of directors accepts the proposal, the developer would cast the solitary vote – in favor of the Mello Roos.


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