Title
Recommendation to Approve Allocation of $3,564,564 in East Bay Municipal Utility District System Capacity Charge and Wastewater Capacity Fee Credits for the Rebuilding Existing Supportive Housing at Alameda Point Project and Delegate Authority to the City Manager to Issue Pledge Letters and Agreements, as Needed. (Base Reuse and Economic Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
City of Alameda (City) staff recommends approval of the allocation of East Bay Municipal Utility District (EBMUD) System Capacity Charge (SCC) and Wastewater Capacity Fee (WCF) credits to support all four phases of the Rebuilding Existing Supportive Housing at Alameda Point (RESHAP) project.
In 2017, the City secured $19.5 million in SCC credits and $7 million in WCF credits from EBMUD as part of the Water Infrastructure Agreement at Alameda Point (Exhibit 1). The City Council adopted allocation criteria prioritizing credits for projects delivering public benefits, such as affordable housing.
This action allocates a total of $2,852,180 in SCC credits and $712,384 in WCF credits to RESHAP, or $3,564,564 overall, across its four phases. Staff also recommends City Council delegate authority to the City Manager to issue letters or agreements pledging these credits as each phase seeks funding.
BACKGROUND
The RESHAP project is a catalytic redevelopment on 7.93 acres at Alameda Point that will deliver 332 deeply affordable homes with supportive services for families, veterans, survivors of domestic violence, and people who have experienced or are at risk of homelessness.
The project is being developed in partnership by MidPen Housing, and Alameda Point Collaborative, Operation Dignity, Building Futures (Collaborating Partners). In addition to new housing, the RESHAP campus will include:
• After-school and youth program spaces and programming
• A family shelter
• A domestic violence Center for Hope and Healing
• A workforce development “Barn” next to an urban farm
The City Council approved the RESHAP Disposition and Development Agreement and land use entitlements in October 2023. Construction will occur in four phases, with the initial phase of backbone infrastructure, funded through prior City Council approvals, now underway and vertical development to follow as each housing phase secures funding to proceed.
On July 18, 2017, City Council approved allocation of EBMUD SCC and WCF fees at Alameda Point for City facilities, existing tenants and upcoming transactions at that time and provided direction on criteria for allocation of fee credits for future projects. The allocation criteria are as follows:
• Number of high-paying jobs created
• Amount of sales proceeds generated for infrastructure development
• Amount of in-kind infrastructure development provided
• Number of affordable and workforce housing units created
• Extent of historic preservation achieved
• Amount of sales tax generation anticipated
• Likelihood of attracting the project without incentives
DISCUSSION
In alignment with the City Council’s 2017 allocation criteria, RESHAP qualifies for the use of EBMUD credits because it delivers affordable and supportive housing, transforms the Main Street Neighborhood into a vibrant area, and directly advances adopted City housing priorities.
EBMUD Credit Allocations by Phase
|
Phase |
Units |
SCC Credits |
WCF Credits |
Total Credits |
|
Harbor Village |
86 |
$753,962 |
$188,512 |
$942,474 |
|
Stardust Gardens |
80 |
$701,360 |
$175,360 |
$876,720 |
|
Building Futures |
74 |
$590,294 |
$146,848 |
$737,142 |
|
APC Phase II |
92 |
$806,564 |
$201,664 |
$1,008,228 |
|
Total |
332 |
$2,852,180 |
$712,384 |
$3,564,564 |
Allocating credits across all four phases ensures that MidPen Housing and the Collaborating Partners can leverage these commitments in upcoming funding applications to the State and federal government, thereby increasing the likelihood of securing the full financing needed for the project.
Credit values shown are based on EBMUD rates effective July 1, 2025. If any project phase advances at a time when rates have increased, the developer will be responsible for covering the difference, or staff will return to City Council to request additional allocation authority. Staff will continue to monitor the City’s EBMUD credit balance to ensure support for future municipal projects and facilities.
Staff also recommends City Council delegate authority to the City Manager to issue letters or agreements pledging these credits as each phase seeks funding ensuring that the documentation of the City’s commitment aligns with specific funding application requirements and submission deadlines.
ALTERNATIVES
• Allocate $3,564,564 in EBMUD credits, based on EBMUD rates in effect July 1, 2025, for all four phases of the RESHAP project and delegate authority to the City Manager to issue pledge letters and agreements.
• Do not allocate EBMUD credits to RESHAP, which would require the project team to identify other funding sources to cover these utility connection costs.
FINANCIAL IMPACT
The allocation of $3,564,564 in EBMUD credits ($2,852,180 SCC and $712,384 WCF) does not impact the General Fund. The credits were secured in 2017 as part of the Water Infrastructure Agreement with EBMUD. Staff will continue to monitor credit balances to support future City facilities and projects.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Alameda Point Environmental Impact Report (2014)
Main Street Neighborhood Specific Plan
City Strategic Plan: HH7 - Implement the City’s Housing Element
This action is subject to the Levine Act
CLIMATE IMPACT
This action will facilitate and expedite the City’s continued efforts to redevelop Alameda Point as a mixed-use, transit-oriented community, which is consistent with and supports the City’s Climate Action Plan and regional and statewide Climate Protection and Greenhouse Gas Emission reduction strategies, including the Bay Area’s Sustainability Strategy, Plan Bay Area.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.The related RESHAP project has already undergone all required environmental review, including but not limited to CEQA review, pursuant to Council’s prior approvals regarding the RESHAP project.
RECOMMENDATION
Approve allocation of $3,564,564 in East Bay Municipal Utility District System Capacity Charge and Wastewater Capacity Fee Credits for the rebuilding existing supportive housing at Alameda Point Project and delegate authority to the City Manager to issue pledge letters and agreements, as needed.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Nicole Franklin, Base Reuse Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Water Infrastructure Agreement