Title
Summary: 1) Public Hearing to Consider Forming City of Alameda Community Facilities District (CFD) (Alameda Point Public Services District), 2) Form the District, 3) Call for a Special Election, 4) Declare the Results of the Election, and 5) Introduce an Ordinance Levying Special Taxes within the District.
Conduct Public Hearing to Consider Formation of City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District) Called Pursuant to Resolution of Intention to Form the CFD Adopted March 7, 2017;
Adoption of Resolution of Formation of the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District), Authorizing the Levy of a Special Tax within the District, Preliminarily Establishing an Appropriations Limit for the District, and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District;
Adoption of Resolution Calling Special Election of the Owner of Property within the District to Approve the Levy of Special Taxes and an Appropriations Limit Within City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District);
Conduct Special Election;
Adoption of Resolution Declaring Results of Special Election and, if Two-Thirds (2/3) or More of the Votes Cast Are in Favor of the District, Direct Recording of Notice of Special Tax Lien - Alameda Point Public Services District; and
Introduction of Ordinance Levying Special Taxes within the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District). (Base Reuse 858)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Conduct Public Hearing to Consider Formation of City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District) Called pursuant to Resolution of Intention to Form the CFD Adopted March 7, 2017;
Adoption of Resolution of Formation of the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District), Authorizing the Levy of a Special Tax within the District, Preliminarily Establishing an Appropriations Limit for the District, and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District;
Adoption of Resolution Calling Special Election of the Owner of Property within the District to Approve the Levy of Special Taxes and an Appropriations Limit Within City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District);
Conduct Special Election;
Adoption of Resolution Declaring Results of Special Election and, if Two-Thirds (2/3) or More of the Votes Cast Are in Favor of the District, Direct Recording of Notice of Special Tax Lien - Alameda Point Public Services District; and
Introduction of Ordinance Levying Special Taxes within the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District). (Base Reuse 858)
BACKGROUND
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 public services and or facilities and administrative expenses. 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.
On March 7, 2017, the City Council adopted a resolution declaring its intention to establish a CFD in order to pay the costs of the public services the City is obligated to provide at Alameda Point. That resolution: (i) approved a boundary map for the CFD, which includes only parcels at Alameda Point, including commercial and residential development within Site A and the adaptive reuse area (Exhibit 1); (ii) described the services to be funded by the CFD; and (iii) set forth a rate and method of apportionment of special taxes (RMA) for the CFD, which describes the special taxes proposed to be levied annually on property in the CFD to be used to pay the costs of the services to be funded by, and to pay the costs to administer the CFD. The resolution also called for a public hearing regarding the CFD to be held at the March 21, 2017 City Council meeting.
Notice of the public hearing was published, and City staff have prepared the resolutions and an ordinance needed to complete the CFD formation process as described below.
Timeline of Actions to Form CFD 17-1 Alameda Point Public Services District
|
Action |
Date |
Status |
|
Adopt resolution declaring intent to levy a tax to form the Alameda Point Public Services District and levy a special tax to fund services |
3/7/2017 |
Complete |
|
Set boundaries for CFD (Alameda Point Site A and adaptive reuse areas) |
3/7/2017 |
Complete |
|
Set the special tax to pay for Alameda Point Public Services District (Alameda Point Site A and adaptive reuse areas) |
3/7/2017 |
Complete |
|
Set March 21, 2017 as Public Hearing to officially form the CFD & conduct the election of landowners |
3/7/2017 |
Complete |
|
Conduct public hearing, special election, and canvass the election |
3/21/2017 |
Proposed Action |
|
First reading of ordinance levying the special tax |
3/21/2017 |
Proposed Action |
DISCUSSION
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 assume that the City will 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 the 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.
As stated above, on March 7, 2017, the City Council adopted a resolution of intention to establish the CFD. The Resolution of Intention to establish the CFD described the proposed boundaries of the CFD; described the proposed special taxes to be levied on the property within those boundaries; described future annexation areas; provided for the acting Director of Public Works to prepare a report describing certain aspects of the CFD; provided for a public hearing on the proposed CFD at the next City Council meeting on March 21, 2017; and also designated formation counsel to assist the City with the formation of the CFD. The exhibits to the Resolution described the services that will be eligible to be funded by the CFD, set forth the rate and method of the apportionment of special taxes (the "RMA") that would be authorized to be levied on property in the CFD, and contained 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, which will be required to annex to the CFD before conveyance to private parties.
The City Clerk has published notice of the March 21, 2017 public hearing regarding the CFD, and the Director of Public Works has prepared the CFD report (Exhibit 2). The CFD report describes the proposed boundaries of the CFD, as well as the services to be funded by the CFD and the estimated costs thereof. It should be noted that the City is the sole owner of the property in the CFD.
The City Council is now requested to hold the public hearing regarding the CFD. At the hearing, all interested persons or taxpayers may testify for or against the establishment of the CFD, the extent of the CFD, and the services to be funded by the CFD. Any person interested is authorized to file a protest in writing. If the owners of over fifty percent (50%) of the land in the CFD protest the formation of the CFD, the City Council may not proceed with the formation of the CFD at this time.
Following the close of the public hearing and assuming no majority protest, the City Council is then requested to take the actions necessary to officially form the CFD, and to authorize the levy of special taxes in the CFD. Staff recommends that the City Council adopt a resolution of formation of the CFD, and a resolution calling a special election of the landowners in the CFD.
A ballot for the election has been delivered to City Manager to execute, as the City is the sole owner of the land in the CFD, and it is expected that the ballots will have been returned to the City Clerk prior to March 21. The only eligible voters are the owners of the land within the boundaries of the CFD, as such boundaries are indicated on the boundary map for the CFD on file with the City Clerk. Under the City's Municipal Code, the landowners are given one vote for each acre of land or portion thereof that they own within the boundaries of the CFD.
The City Clerk will be requested to canvass the election immediately after adoption of the resolution calling the election.
If two-thirds or more of the votes cast at the election are in favor of the CFD, 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 (Exhibit 6) with the County Recorder. The notice provides all future owners of property in the CFD with knowledge of the CFD's special taxing power.
The City Council is then requested to have the first reading of an ordinance levying special taxes. The ordinance permits special taxes to be levied only on property located in the CFD. It is expected that, once the ordinance is effective, special taxes will be levied commencing upon transfer of property from public ownership to private ownership, and will continue to be levied each fiscal year thereafter in perpetuity.
FINANCIAL IMPACT
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 CFD 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 CFD, 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.
There will be a financial impact to future private property owners, as they will be required to pay the special taxes. The annual special tax for private property owners will range from $1,700 to $3,600 per unit depending on land use category and $0.60 to $0.70 per square foot of non-residential use depending on the zone.
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.
ENVIRONMENTAL REVIEW
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.
RECOMMENDATION
Hold a continued public hearing regarding formation of the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District), close the public hearing, adopt a resolution of formation of the CFD, adopt a resolution calling a special election within the CFD, conduct the special election, adopt a resolution declaring the results of the special election, and introduce on first reading the ordinance levying special taxes within the CFD.
Respectfully submitted,
Jennifer Ott, Base Reuse Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Boundary Map of CFD 17-1
2. Community Facilities District Report for CFD 17-1
3. Notice of Special Tax Lien - CFD 17-1