Title
Summary Title: Complete Actions to Expand Public Improvements and Territory for Financing District at Alameda Landing and Levy of Corresponding Special Tax - Community Facilities District (CFD) No. 13-1 (Alameda Landing Public Improvements)
Public Hearing to Consider the Expansion of Facilities by Adoption of Resolution Calling Special Election Regarding Alteration of the Facilities to be Financed by and the Rate and Method of Apportionment of Special Taxes for, and an Increase in the Bonded Indebtedness Limit of, Community Facilities District No. 13-1 (Alameda Landing Public Improvements); Conducting Special Election; Adoption of Resolution Declaring Results of Special Election in Community Facilities District No. 13-1 (Alameda Landing Public Improvements), Determining that Alteration of the Facilities to be Financed By and the Rate and Method of Apportionment of Special Taxed for, and the Increase in the Bonded Indebtedness Limit of, the District are Lawfully Authorized, Approving and Authorizing the Execution of a Supplement No. 1 to Acquisition Agreement, and Directing Records of an Amendment to Notice of Special Tax Lien; and Introduction of Ordinance Amending and Restating Ordinance Levying Special Taxes within the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements); and
Public Hearing to the Expansion of Territory by Adoption of Resolution of Annexation of Territory to the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements), 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 Validity of Prior Proceedings, and Directing Recording of Amendment to Notice of Special Tax Lien - Alameda Landing Public Improvements. (Community Development 256)
Body
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 facilities and debt limit of Community Facilities District No. 13-1
Adopt a resolution calling a special election regarding the expansion of facilities and debt limit of CFD 13-1
Conduct the special election regarding the facilities and debt limit
Adopt a resolution declaring results of the special election and approving a Supplement to Acquisition Agreement for CFD 13-1
First reading (by title only) of ordinance amending ordinance levying special taxes for CFD 13-1
Conduct a public hearing regarding expansion of territory of CFD 13-1
Adopt a resolution of annexation of territory to CFD 13-1 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 January 7, 2014, the City Council adopted Resolution No. 14880 pursuant to which it formed the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements) (CFD), and adopted Resolution No. 14881 determining that the City could issue, for the CFD, up to $20,000,000 in bonds to finance certain public facilities being constructed by Catellus Alameda Development, LLC (Developer) in connection with the development of Phase 1 of Alameda Landing. These facilities included the backbone sanitary sewer, storm and water systems and construction of Mitchell and Stargell Avenues and Fifth Street.
The Alameda Landing Disposition and Development Agreement (DDA) requires the 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 the Phase 2 property to the CFD and to add to the public facilities that can be financed by the CFD. In addition, the Developer is requesting an increase in the debt limit of the CFD. A boundary map for the territory to be annexed is attached as Exhibit 1.
By annexing the Phase 2 land, adding public facilities to be financed, and increasing the debt limit of the existing CFD 13-1, the Developer will be able to finance the necessary work to stabilize the existing wharf to build the public waterfront park, complete Mitchell Street to the project's western boundary, and build other critical public infrastructure. At a future date, bonds will be issued to reimburse the Developer for its cost of constructing the Phase 1 and Phase 2 public improvements owned by the City. The bonds will be repaid from annual levies of special taxes on all of the land owners in the CFD. 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 facilities to be financed by, and the debt limit for, CFD 13-1, and setting a public hearing regarding annexing property to CFD 13-1. Notices of the public hearings have been published, and City staff have prepared the resolutions and an ordinance 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 either finance directly the costs of specified public improvements or to pay debt service on bonds issued to finance the public improvements, as well as to pay costs of administration of the community facilities district.
On January 7, 2014, the City Council formed CFD 13-1, which currently includes Alameda Landing Phase 1, and authorized the City to issue up to $20,000,000 of bonds for the CFD. The Developer is now requesting that the City annex the 40 acres in Phase 2 of Alameda Landing into the CFD. In addition, the Developer would like to add to the facilities authorized to be financed by the CFD, and to increase the bonded indebtedness limit of the CFD to $40,000,000. This will allow the CFD to finance Phase 1, as well as Phase 2, public infrastructure improvements described above.
Adding Facilities to be Financed and Increasing the Debt Limit
On April 7, 2015, the City Council adopted a resolution calling for a public hearing regarding the addition of facilities to be financed by the CFD and an increase in the debt limit of the CFD, all pursuant to Sections 3-70.49 and 3-70.81 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. Following the canvass of the election, the City Council then must adopt an ordinance amending the ordinance previously adopted levying special taxes on property in the CFD, in recognition of the property-owner approved changes to the special taxes for the CFD. The resolution canvassing the election also approves a supplement to an Acquisition Agreement with the Developer (Exhibit 2), which allows for the CFD to pay the Developer for costs of construction of the facilities added to the CFD. The original Acquisition Agreement was approved by the City Council on July 23, 2013.
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 finance the additional facilities, and the City will have an ability to issue up to $40,000,000 in special tax bonds for the CFD payable from special taxes levied on property in the CFD and the area annexed to the CFD. Construction of the CFD facilities by the Developer is ongoing. It is expected that bonds will be issued for the CFD as homes and other buildings are constructed in the area of the CFD, with the first bonds to be issued in late 2015 or early 2016.
FINANCIAL IMPACT
There is no impact to the General Fund to modify the CFD or to annex territory to the CFD. All costs related to the modifications being made to the CFD, and to the annexation of property to the CFD, are being paid by the Developer in connection with its obligations under the DDA and 2007 Development Agreements. The annual costs to administer the CFD, and any bonds issued for the CFD, will be paid from annual special taxes levied on property included within the boundaries of 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 changes to the CFD and the annexation of territory to 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 modifications now being made to CFD 13-1 and the annexation of territory to CFD 13-1 are 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 changes to Community Facilities District No. 13-1, adopt the resolution calling a special election regarding the changes to the CFD, conduct the special election, adopt the resolution declaring the results of the special election and approving the supplement to the Acquisition Agreement with the Developer, and have the first reading of the ordinance amending the prior ordinance levying special taxes within the CFD.
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 13-1
2. Supplement No. 1 to Acquisition Agreement