Adoption of Resolution Declaring Intention to Establish a Community Facilities District (CFD) and to Authorize the Levy of Special Taxes Therein - Alameda Point Public Services District. (Base Reuse 819099)
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of Resolution Declaring Intention to Establish a Community Facilities District (CFD) and to Authorize the Levy of Special Taxes Therein - Alameda Point Public Services District
On June 16, 2015, the City Council approved the Development Plan, and Disposition and Development Agreement (DDA) between the City of Alameda and the developer, Alameda Point Partners, LLC (APP), for the 68-acre Site A development, which is the first major public/private development at Alameda Point since the base closed in 1997. The DDA for the Site A development requires APP to invest over $103 million in public infrastructure and amenities and provide annual financing of public services and transportation services and programs consistent with the approved Development Plan, Fiscal Neutrality Policy for Alameda Point, and Site A Transportation Demand Management (TDM) Compliance Strategy in compliance with the Alameda Point TDM Plan. In addition to Site A, all other properties at Alameda Point are required to comply with the Alameda Point TDM Plan and Fiscal Neutrality Policy for Alameda Point and provide annual financing of public services and transportation services and programs.
City staff and APP are proposing the formation of a Community Facilities District (CFD) under the City of Alameda’s Special Tax Financing Improvement Code [Alameda Municipal Code (AMC) Section 3-70] to finance annual public services and TDM services and programs associated with: (1) Phase 1 of the Site A project in order to implement Section 3.1(c) of the DDA, and (2) all property within the adaptive reuse area currently owned by the City of Alameda and outside of State Lands jurisdiction. As a result, the transferring of parcels within the adaptive reuse areas will be conveyed to private property owners subject to the special tax obligations for public services (Exhibit 1). Other areas at Alameda Point are included in the “Future Annexation Area” and will be annexed into the CFD prior to transfer to private property owners.
The City has established several CFDs in the past to finance various public improvements and public services, most recently for the Alameda Landing Area. A CFD allows for the annual levy of a special tax on property in a designated area to pay costs of administering the CFD, and the payment of costs of services or public facilities the CFD is authorized to finance (as well as the payment of debt service on bonds issued for the CFD to finance public facilities). There is no impact on the General Fund or on owners of property outside of the CFD boundaries as a consequence of the establishment of a CFD.
A Resolution of Intention to Establish the CFD is attached. Adoption of the Resolution will commence the proceedings necessary to establish a CFD to provide funding for the required public services.
The Alameda Point planning documents, including the Master Infrastructure Plan and detailed fiscal impact analysis, contemplated that the City would provide certain public services at Alameda Point, including the maintenance of public infrastructure improvements (i.e., streets, parks, and a levee), the provision of police and fire protection services, and, via the West Alameda Transportation Management Association, transportation services and programs. The Site A DDA is consistent with the Alameda Point planning documents and all of the parcels within the adaptive reuse areas will be conveyed to private property owners subject to these special tax obligations for public services.
The Alameda Point planning documents also assumed that the City would establish a public services district in order to provide a means to assess property at Alameda Point to pay for the services. City staff now recommends that the City establish a CFD under the City's Municipal Code to allow for the levy of special taxes to pay for those services. A CFD is a defined geographic area in which the City is authorized to levy annual special taxes to be used to pay the annual costs of providing specific public services, as well as to pay costs of administration of the CFD. In this case, all of the planned residential and commercial areas on private property within Alameda Point will be included in the proposed CFD to pay for the required services.
The Resolution of Intention to establish the CFD describes the proposed boundaries of the CFD; describes the proposed special taxes to be levied on the property within those boundaries; describes future annexation areas; provides for the acting Director of Public Works to prepare a report describing certain aspects of the CFD; provides for a public hearing on the proposed CFD at the next City Council meeting on March 21, 2017; and also designates the law firm of Quint & Thimmig as formation counsel to assist the City with the formation of the CFD. The exhibits to the Resolution describe the services that will be eligible to be funded by the CFD, sets forth the rate and method of apportionment of special taxes (the "RMA") that would be authorized to be levied on property in the CFD, and contain a notice of the public hearing to be published by the City Clerk.
The boundary map for the proposed CFD included with this Report shows the area to be included in the CFD, which is all of Phase 1 of Site A owned by the City and all City owned parcels within the adaptive reuse area (outside of State Lands jurisdiction). The Future Annexation Area includes the rest of the developable areas of Alameda Point.
If the City Council adopts the Resolution of Intention to Establish the CFD, it is expected that on March 21, 2017, the City Council will hold the public hearing called pursuant to the Resolution of Intention, and then take the actions needed to complete the CFD formation process, including conducting an election of the owners of property in the CFD with respect to the establishment of the CFD and the levy of special taxes on property in the CFD.
There is no expected impact on the General Fund from declaring the City's intention to form the CFD. All costs related to the formation of the community facilities district are being paid by APP in connection with its obligations under the DDA. The annual costs to administer the CFD will be paid for from annual special taxes accounted for in a separate fund and levied on property included within the boundaries of the community facilities district, which will include only land within the Alameda Point area. In fact, the formation of the CFD will assist in the implementation of the Fiscal Neutrality Policy for Alameda Point and help ensure that there are dedicated annual sources of funds for public services and transportation and TDM services and programs for new development at Alameda Point.
The Rate and Method of Apportionment sets the maximum special tax that can be levied on property within CFD and varies by property type. The maximum special tax is subject to annual increase by the greater of the change in the San Francisco Urban Consumer Price Index or two percent.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Municipal Code currently contains, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the proposed community facilities district will be formed.
On February 4, 2014, the City of Alameda certified the Alameda Point Final EIR in compliance with the California Environmental Quality Act (CEQA). The Final EIR evaluated the environmental impacts of redevelopment and reuse of the lands at Alameda Point consistent with Alameda Point Zoning District, including the adaptive reuse area and with the Alameda Point Waterfront Town Center Plan, which included Site A. The intention to establish a CFD and to authorize the levy of special taxes facilitates redevelopment of the property consistent with the prior approvals and will not result in any new or substantially more severe environmental impacts than were previously identified in the Final EIR.
Adopt a resolution declaring intention to establish a Community Facilities District and to authorize the levy of special taxes therein - Alameda Point Public Services District.
Jennifer Ott, Base Reuse Director
Financial Impact section reviewed,
Elena Adair, Finance Director
1. Boundary Map for CFD 17-1