Title
Summary Title: Complete Actions to Expand Municipal Services and Territory for Financing District at Alameda Landing and Levy of Corresponding Special Tax - Community Facilities District (CFD) No. 13-2 (Alameda Landing Municipal Services District)
Public Hearing to Consider the Expansion of Municipal Services by Adoption of Resolution Calling Special Election Regarding Alteration of the Municipal Services to be Financed by Community Facilities District No. 13-2 (Alameda Landing Municipal Services District); Conducting Special Election; and Adoption of Resolution Declaring Results of Special Election in Community Facilities District No. 13-2 (Alameda Landing Municipal Services District), Determining that the Alteration of Municipal Services to be Financed by the District are Lawfully Authorized, and Directing Recording of an Amendment to Notice of Special Tax Lien; and
Public Hearing to Consider the Expansion of Territory by Adoption of Resolution of Annexation of Territory to the City of Alameda Community Facilities District No. 13-2 (Alameda Landing Municipal Services District), Authorizing the Levy of a Special Tax Therein and Submitting Levy of Special Tax to Qualified Electors; Conducting Special Election; and Adoption of Resolution Declaring Results of Special Annexation Election, Determining the Validity of Prior Proceedings, and Directing Records of Amendment to Notice of Special Tax Lien - Alameda Landing Municipal Services District. (Community Development 256)
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To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Recommendation to: Conduct a public hearing regarding expansion of municipal services for Community Facilities District No. 13-2
Adopt a resolution calling a special election regarding the expansion of municipal services for CFD 13-2
Conduct the special election regarding the municipal services
Adopt a resolution declaring results of the special election regarding the municipal services
Conduct a public hearing regarding expansion of territory of CFD 13-2
Adopt a resolution of annexation of territory to CFD 13-2 and calling special election regarding the annexation
Conduct the special election regarding the annexation
Adopt a resolution declaring results of the special annexation election
BACKGROUND
On February 4, 2014, the City Council adopted Resolution No. 14888 pursuant to which it formed the City of Alameda Community Facilities District No. 13-2 (Alameda Landing Municipal Services District) (the CFD). The CFD was formed to allow for the financing of various municipal services that the City is obligated to provide to Phase 1 of the Alameda Landing project, including the maintenance of public infrastructure improvements in the area and the provision of police and fire protection services to the area.
The Alameda Landing Disposition and Development Agreement (DDA) requires Catellus Alameda Development, LLC (Developer) to commence construction on Phase 2 of the project by December 31, 2017. In anticipation of that obligation, the Developer has requested that the City take action to annex that property to the existing CFD 13-2. In anticipation of the annexation, the Developer would also like to add to the services that can be financed by the CFD. The boundary map for territory to be annexed is attached as Exhibit 1.
A long-standing City policy regarding redevelopment of former military property requires that the conversion to civilian reuse be fiscally neutral to the City's General Fund. Therefore, CFD 13-2 was established to provide a funding mechanism to pay for the on-going maintenance and operation of the public infrastructure built as part of the Alameda Landing project. CFD 13-2 allows for levies of special taxes on all of the Phase 1 property owners to cover the cost of on-going maintenance of City-owned public improvements. It is now proposed to annex Phase 2 land to CFD 13-2 and allow for the financing of the maintenance of additional City-owned infrastructure to be built as part of the Phase 2 project. The DDA provides that the City will establish a CFD if the Developer requests. The Developer is obligated to pay the cost of establishing the CFD.
On April 7, 2015, the City Council adopted a resolution setting a public hearing for April 21, 2015, regarding the addition of municipal services to be financed by CFD 13-2, and setting a public hearing regarding annexing property to CFD 13-2. Notices of the public hearings have been published, and City staff have prepared the resolutions needed to complete the proceedings commenced on April 7, 2015, as described below.
DISCUSSION
A community facilities district is a defined geographic area in which the City is authorized to levy annual special taxes to be used to pay costs of municipal services provided to the area, as well as to pay costs of administration of the community facilities district.
On February 4, 2014, the City Council adopted a resolution forming CFD 13-2, which includes the property within Phase 1 of Alameda Landing, and authorizing the City to levy special taxes on property located in the CFD to pay the costs of municipal services. The Developer has now requested that the City annex the 40 acres in Phase 2 of Alameda Landing into the CFD. The Developer would also like to add to the services authorized to be financed by the CFD, so that the CFD can finance municipal services for the area in Phase 1, as well as for the 40 acres in Phase 2. New services to be financed include the on-going cost of maintaining the public waterfront space, extendeding Mitchell Avenue, and Phase 2 backbone infrastructure.
Adding Municipal Services to be Funded
On April 7, 2015, the City Council adopted a resolution calling for a public hearing regarding the addition of municipal services to be funded by the CFD pursuant to Section 3-70.49 of the City's Municipal Code. To complete the proposed changes to the CFD, the Municipal Code requires that, following the public hearing, the City Council hold an election of the property owners in the CFD regarding the changes to the CFD. The Municipal Code allows for the election to be immediately held and canvassed.
Property Annexation
On April 7, 2015, the City Council adopted a resolution calling for a public hearing regarding the annexation of property to the CFD, pursuant to Section 3-70.59 of the City's Municipal Code. To complete the annexation process, the Municipal Code requires that, following the public hearing, the City Council hold an election of the property owners in the area to be annexed. The Municipal Code allows for the election to be immediately held and canvassed.
Conclusion
If the City Council holds the public hearings and conducts the two elections for the CFD, the CFD will be able to fund the additional municipal services from proceeds of special taxes levied on property in the CFD and the area annexed to the CFD.
FINANCIAL IMPACT
Annexing Alameda Landing Phase 2 to CFD 13-2 has a positive impact on the General Fund. This annexation ensures that redevelopment of the former Fleet Industrial Supply Center is fiscally neutral. The CFD special tax will fund the authorized municipal services at Alameda Landing Phase 2, including the maintenance of the waterfront park, which are otherwise an obligation to the City.
All costs related to the annexation of territory to the CFD, and the modifications being made to the CFD, are being paid by the Developer in connection with its obligations under the DDA and Development Agreements. The annual costs to administer the CFD will be paid for from annual special taxes levied on property included within the boundaries of the CFD, including the area annexed to the CFD.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Municipal Code contains, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the CFD was formed, and pursuant to which the annexation and change in services to be provided by the CFD are being processed.
ENVIRONMENTAL REVIEW
On December 5, 2006, the City Council certified the Final Environmental Impact Report for the Alameda Landing Mixed Use Development Project (a Supplement to the 2000 Catellus Mixed-Use Development Project EIR) in accordance with the California Environmental Quality Act (CEQA) (State Clearinghouse #2006012091). The City approved a First Addendum to the EIR in 2007, a Second Addendum to the EIR in 2008, and a Third Addendum to the EIR in 2012. The Third Addendum approved in January 2012, evaluated the potential impact of the proposed changes to the approved Retail Center Development Plan and the Street Plan. The annexation of territory to CFD 13-2 and the levy of special taxes on the property to be annexed and allowing for the CFD to provide additional municipal services is consistent with the prior approvals and will not result in any new or substantially more severe environmental impacts than were previously identified in the Supplemental EIR and addenda.
RECOMMENDATION
Hold the public hearing regarding the additional municipal services to be funded by the City of Alameda Community Facilities District No. 13-2, adopt the resolution calling a special election regarding the changes to the CFD, conduct the special election, and adopt the resolution declaring the results of the special election. It is also recommended that the City Council hold the public hearing regarding the annexation of territory to the CFD, adopt the resolution calling a special election regarding the annexation, conduct the special election, and adopt the resolution declaring the results of the annexation election.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Boundary Map for Territory to be Annexed to CFD 13-2