Title
Summary Title: Take Actions to Form Community Facilities District No. 25-1 (West Midway Facilities), Annex Community Facilities District No. 17-1 (Alameda Point Public Services District), and Levy Special Taxes
Public Hearing Regarding City of Alameda Community Facilities District No. 25-1 (West Midway Facilities): Adoption of Resolution Forming City of Alameda Community Facilities District No. 25-1 (West Midway Facilities) and Future Annexation Area, Authorizing the Levy of a Special Tax Therein to Finance Public Facilities in and for Such Community Facilities District;
Adoption of Resolution Determining Necessity to Incur Bonded Indebtedness for the City of Alameda Community Facilities District No. 25-1 (West Midway Facilities);
Adoption of Resolution Calling Special Election Regarding the City of Alameda Community Facilities District No. 25-1 (West Midway Facilities);
Adoption of Resolution Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien Regarding City of Alameda Community Facilities District No. 25-1 (West Midway Facilities);
Introduction of Ordinance Levying Special Taxes Within the City of Alameda Community Facilities District No. 25-1 (West Midway Facilities); and
Public Hearing Regarding Annexation of Territory to City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District): Adoption of Resolution Annexing Territory to Community Facilities District No. 17-1 (Alameda Point Public Services District), Authorizing the Levy of a Special Tax and Submitting Levy of Tax to Qualified Electors; and
Adoption of Resolution Declaring Results of Special Annexation Election for Community Facilities District No. 17-1 (Alameda Point Public Services District), Determining Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien. (Public Works 281)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City Council will conduct a public hearing to consider (i) forming City of Alameda Community Facilities District No. 25-1 (West Midway Facilities) ("CFD 25-1"), (ii) authorizing a limit on bonded indebtedness for CFD 25-1, (iii) calling for a special mailed ballot election for CFD 25-1, (iv) declaring election results for CFD 25-1, (v) introducing an ordinance levying special taxes for CFD 25-1, (vi) annexation of territory to Community Facilities District No. 17-1 (Alameda Point Public Services District) ("CFD 17-1"), (vii) calling for a special mailed ballot of annexation election for CFD 17-1, (viii) declaring election results for annexation to CFD 17-1, and conducting related proceedings for the CFDs.
BACKGROUND
On May 22, 2023, the Planning Board approved the Development Plan for a residential mixed use development consisting of 478 new housing units, up to 10,000 square feet of non-residential uses and associated streets, infrastructure, utilities, and open space on approximately 26-acre of land immediately adjacent to the 8-acre RESHAP project site in the Main Street Neighborhood Specific Plan area of Alameda Point (West Midway Project).
On July 18, 2023, City Council approved the Disposition and Development Agreement (DDA) for the West Midway Project. The DDA establishes a contractual relationship between the City of Alameda (City) and BC West Midway, LLC (Developer), for the development of the 26-acre site and associated infrastructure. The DDA also establishes the schedule and financing of certain public infrastructure and conveyance of the site to the Developer for eventual sale to future homeowners and property owners in the West Midway neighborhood.
On November 1, 2024, the Developer requested the formation of a community facilities district (CFD 25-1) to finance certain public infrastructure including various public streets within the development as contemplated by the DDA. The Developer is also required by project conditions and, as defined in the DDA, to annex into the existing Alameda Point Services CFD 17-1 to provide dedicated funding for public services and Transportation Demand Management services and programs associated with the development.
On September 2, 2025, City Council adopted resolutions declaring its intention to form CFD 25-1, declaring its intention to incur bonded indebtedness to finance the acquisition and construction of public improvements for CFD 25-1, and declaring its intention to annex to CFD 17-1. Resolution No. 16310 and No. 16311 approved a boundary map for CFD 25-1 (Exhibit 1), described the facilities to be financed by CFD 25-1, set forth a rate and method of apportionment of special taxes for CFD 25-1, and set forth a maximum amount of bonds to be issued for CFD 25-1 to finance costs of the facilities at $35,000,000. Resolution No. 16312 approved an annexation map for CFD 17-1 (Exhibit 2), and set forth a rate and method of apportionment of special taxes for this annexation area. The resolutions also called for a public hearing regarding the CFDs and the proposed bond issue to be held at the October 7, 2025 City Council meeting.
All of the land proposed to be included within the initial boundary of CFD 25-1 and to be annexed into CFD 17-1 is currently owned by the City and intended to be transferred to the Developer (or other private parties) in the future for development. CFD 25-1 is being formed around initial Improvement Area No. 1 with a related Future Annexation Area from which property may annex into CFD 25-1 in the future with the unanimous approval(s) of the landowner(s) therein, without any requirement for further public hearings or additional proceedings. The issuance of bonds from CFD 25-1 will not be presented to the City Council until sometime in 2027, after the land has been transferred to the Developer.
The notice of public hearing has been published, and City staff prepared the resolutions and ordinance needed to complete the formation of CFD 25-1 and annexation to CFD 17-1. The Developer also executed an Acquisition Agreement (Exhibit 3) which sets the terms under which the City will acquire public infrastructure improvements that the Developer constructs, using CFD bond proceeds. The Developer may also finance facilities and/or impact fees used for facilities of other local agencies with CFD bond proceeds, pursuant to separate agreements with those local agencies.
DISCUSSION
Community Facilities District No. 25-1
The City Clerk published notice of the public hearing regarding the formation of CFD 25-1 and related future annexation area, and the proposed bonds to be issued for CFD 25-1, and NBS, for and on behalf of the Public Works Director, prepared a CFD Report (Exhibit 4). The CFD Report describes the proposed boundaries of CFD 25-1, as well as the facilities to be financed by CFD 25-1 and the estimated costs thereof.
The City Council is now requested to hold the public hearing regarding CFD 25-1. At the hearing, all interested persons or taxpayers may testify for or against the establishment of CFD 25-1, the extent of CFD 25-1, the facilities to be finance by CFD 25-1 and the issuance of bonds for CFD 25-1. Any person interested is authorized to file a protest in writing. If the owners of over fifty percent (50%) or more of the land in CFD 25-1 protest the formation of CFD 25-1, City Council may not proceed with the formation of CFD 25-1 at this time. The City is the only interested party and the Mayor may vote verbally at the public hearing.
Following close of the public hearing and assuming no majority landowner protest, City Council is then requested to take the actions necessary to officially form CFD 25-1, to authorize the levy of special taxes on taxable property in CFD 25-1 and to authorize the incurrence of bonded indebtedness for CFD 25-1 in an amount of up to $35,000,000. Staff recommends that City Council adopt a resolution of formation of CFD 25-1, a resolution of necessity to incur bonded indebtedness of CFD 25-1, and a resolution calling a special election of the landowners in CFD 25-1.
The ballot for the election has already been delivered to the sole owner of the land to be initially included in CFD 25-1 (being the City).
The City Clerk will be requested to canvass the election immediately after adoption of the resolution calling the election.
The City Council is then requested to adopt a resolution declaring the results of the election and providing for the recording of a Notice of Special Tax Lien with the Alameda County Recorder. The notice provides all future owners of property in CFD 25-1 with knowledge of the existence of CFD 25-1 and its rate and method of apportionment of the special tax therein.
The City Council is then requested to have the first reading of an ordinance levying special taxes within CFD 25-1.
Once the second reading and adoption of the ordinance occurs at the next scheduled City Council meeting, the City will have authority to levy special taxes within CFD 25-1 to pay debt service on bonds and other authorized purposes of CFD 25-1. Staff expects that a resolution authoring the issuance of bonds for CFD 25-1 and approving the related legal documents will be presented to the City Council sometimes in 2027, after development of the property in CFD 25-1 has commenced and land has been transferred to the Developer.
Community Facilities District No. 17-1
The City Clerk has published the notice of the public hearing regarding annexation of land to CFD 17-1.
The City Council is now requested to hold the public hearing regarding annexation of land to CFD 17-1. At the hearing, all interested persons or taxpayers may testify for or against the annexation to CFD 17-1. Any person interested is authorized to file a protest in writing. If the owners 50% or more of the land or 50% of more of the registered voters in CFD 17-1, or 50% or more of the registered voters or owners of one-half or more of the area of land in the territory proposed to be annexed to CFD 17-1 protest the annexation, the City Council may not proceed with the annexation to CFD 17-1 at this time. The City is the only interested party and the Mayor may vote verbally at the public hearing.
Following the closing of the public hearing and assuming no majority protest, the City Council is then requested to take the actions necessary to officially annex territory into CFD 17-1, and to authorize the levy of special taxes on property annexing into CFD 17-1. Staff recommends that the City Council adopt a resolution of annexation of territory to CFD 17-1.
The ballot for the election has already been delivered to the sole owner of the land to be annexed into CFD 17-1 (being the City).
The City Clerk will be requested to canvass the election immediately after adoption of the resolution calling the election.
The City Council is then requested to adopt a resolution declaring the results of the election and providing for the recording of an Amended Notice of Special Tax Lien with the Alameda County Recorder. The notice provides all future owners of property annexing in CFD 17-1 with knowledge of the existence of CFD 17-1 and its rate and method of apportionment of the special tax therein.
The City will levy special taxes in CFD 17-1 upon issuance of a certificate of occupancy within the annexed territory which will only occur after development of the property in CFD 17-1 has commenced and land has been transferred to the Developer.
ALTERNATIVES
* Conduct the public hearing and election for CFD formation and annexation and approve the associated resolutions and ordinance (as recommended by City Staff).
* Amend the parameters of the CFD formation and/or annexation as reflected in the resolutions. This alternative will impact the bond proceeds and/or revenues for public services or programs.
* Delay commencement of CFD formation and/or annexation. This alternative may delay construction of off-site improvements, as the Developer plans to use bond proceeds from completed public infrastructure to pay for subsequent phases.
* Not approve the formation of CFD 25-1 but still proceed with the annexation into CFD 17-1. This alternative will impact the planned funding of the West Midway Development and may delay construction of the project.
FINANCIAL IMPACT
There is no impact on the General Fund from the formation of CFD 25-1 and annexation to CFD 17-1. All costs related to the formation of CFD 25-1 and annexation to CFD 17-1 are paid by the Developer in connection with its obligations under the Deposit and Reimbursement Agreement or will be paid from the proceeds of bonds that the City may issue for CFD 25-1. The annual costs to administer both CFDs and any bonds issued for CFD 25-1 are paid from annual special taxes to be accounted for in a special fund and to be levied annually on property owners within the boundaries of the CFDs. The annexation to CFD 17-1 will also assist in the implementation of the Fiscal Neutrality Policy for Alameda Point and help ensure that there are dedicated annual resources of funds for public services and programs for new development at Alameda Point.
.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Alameda Municipal Code sets forth, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the proposed CFD 25-1 is being formed.
General Plan Policy, LU-19, is to implement an Alameda Point Main Street Neighborhood Mixed-Use District.
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.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
1. Hold a public hearing regarding City of Alameda Community Facilities District No. 25-1 (West Midway Facilities).
2. Adopt a resolution forming City of Alameda Community Facilities District No. 25-1 (West Midway Facilities), designating an improvement area therein, establishing a future annexation area, providing for additional future improvement areas therein, and authorizing the levy of a special tax therein to finance public facilities in and for such community facilities district.
3. Adopt a resolution determining necessity to incur bonded indebtedness for the City of Alameda Community Facilities District No. 25-1 (West Midway Facilities).
4. Adopt a resolution calling special election regarding the City of Alameda Community Facilities District No. 25-1 (West Midway Facilities).
5. Adopt a resolution declaring results of special election and directing recording of Notice of Special Tax Lien regarding City of Alameda Community Facilities District No. 25-1 (West Midway Facilities).
6. Introduce ordinance levying special taxes within the City of Alameda Community Facilities District No. 25-1 (West Midway Facilities).
7. Hold a public hearing regarding annexation of territory to City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District).
8. Adopt a resolution annexing territory to Community Facilities District No. 17-1 (Alameda Point Public Services District), authorizing the levy of a special tax and submitting levy of tax to qualified electors.
9. Adopt a resolution declaring results of special annexation election for Community Facilities District No. 17-1 (Alameda Point Public Services District), determining validity of prior proceedings, and directing recording of amended notice of special tax lien.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Kan Xu, Senior Engineer
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Boundary Map for CFD 25-1, Improvement Area No. 1
2. Annexation Map for CFD 17-1, Annexation No. 2
3. Acquisition Agreement
4. Community Facilities District Report for CFD 25-1|1010|