Serrano J Park Scandal Continues: $4.6M+ and Counting

𝐇𝐨𝐰 𝐒𝐞𝐫𝐫𝐚𝐧𝐨 𝐓𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬 𝐖𝐞𝐫𝐞 𝐋𝐞𝐟𝐭 𝐖𝐢𝐭𝐡 𝐚 𝐌𝐮𝐥𝐭𝐢𝐦𝐢𝐥𝐥𝐢𝐨𝐧-𝐃𝐨𝐥𝐥𝐚𝐫 𝐏𝐚𝐫𝐤 𝐁𝐢𝐥𝐥 𝐓𝐡𝐞𝐲 𝐒𝐡𝐨𝐮𝐥𝐝 𝐍𝐞𝐯𝐞𝐫 𝐇𝐚𝐯𝐞 𝐎𝐰𝐞𝐝

A. DEVELOPER CONTRIBUTION: $0 OUT OF POCKET

B. MELLO-ROOS TAXPAYER FUNDS COMMITTED: $3,500,000

C. ESTIMATED REMAINING CONSTRUCTION SHORTFALL: $4,600,000+

Source: Letter from El Dorado County Counsel (Dec 3, 2018).
Key Provision: The El Dorado Hills Specific Plan Public Improvements Financing Plan (PIFP) legally required the 12.5-acre park site to be dedicated to EDHCSD “upon completion of the respective park improvements at those sites by the developer.”
County Action: The County explicitly pushed the developer (Serrano) to provide a detailed construction schedule to fulfill its build obligation.
CSD Intervention: County Counsel noted that EDHCSD indicated a desire to “forego developer construction” and instead construct the park themselves using CFD funds.

Source: EDHCSD Agenda Report to Parks and Planning Committee (Sept 10, 2018).
Build Estimate: CSD staff prepared a preliminary construction cost estimate of $5,876,792 for Phase 1 amenities (parking, 4-stall restroom, playgrounds, dog park, bocce courts, shade structures, and utilities).

Source: Tri-Party Agreement between El Dorado County, EDHCSD, and Serrano Associates (Aug 4, 2020).
Terms: EDHCSD formally took over responsibility for constructing the 12.5-acre park.
Financial Cap: Serrano’s funding contribution was capped at $3,500,000 in remaining CFD 1992-1 funds.
Alternative Waiver: Recital 51 released Serrano from its obligation to directly construct the park in exchange for dedicating the land and assigning the capped $3.5M CFD funds.

Day-1 Unfunded Deficit (2018): Accepting a fixed $3,500,000 CFD cash assignment against EDHCSD’s own $5,876,792 build estimate created an immediate $2,376,792 shortfall.
Escalated Deficit (2026): Because the $3.5M developer cap contained no inflation or interest adjustments, subsequent heavy civil construction cost increases push the estimated build cost to over $8.1M, expanding the unfunded burden on public funds to over $4.6M (and counting).