Title
Adoption of Resolution of Consideration to Alter the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1 (Alameda Point Public Services District) and Set a Public Hearing for October 16, 2018. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The recommended action will alter the Rate and Method of Apportionment of Special Taxes (RMA) for Community Facilities District (CFD) No. 17-1 to modify the definitions of “Developed Property” and of “Non-Residential Property” in the Rate and Method, so that an unintended error is corrected and the RMA reflects what was intended by the City and property owners at the time of formation of the CFD.
BACKGROUND
On March 21, 2017, the City Council adopted Resolution No. 15249 pursuant to which it formed the City of Alameda CFD No. 17-1, in connection with the development of Alameda Point. The CFD was established in order to finance annual public services and transportation demand services and programs associated with the development of the 68-acre Site A development. Other areas of Alameda Point are included in a “Future Annexation Area” for the CFD and are to be annexed into the CFD prior to their transfer to private property owners. The first such annexation occurred on March 15, 2018, in connection with a transfer of a portion of the Site A land.
The Resolution that formed the CFD approved a RMA for the District, which set forth the manner in which the City Council will levy special taxes on property in the CFD to pay the costs of the services eligible to be financed by the CFD, and to pay the costs of the City to administer the CFD. Following the formation of the CFD, it was discovered that there was an unintended error in the RMA that would prevent the levy of special taxes on property to be included in Zone 2 of the CFD. While the City expected to be able to levy special taxes on all property in, or annexed to, Zone 2 of the CFD that was developed, the definition of “Developed Property” in the RMA would not allow for the special tax levy on certain parcels. The owners of all property in Zone 2 of the CFD were advised of the expected special tax levy, and City staff now recommends that the City Council take the necessary actions to correct the error in the RMA. The proposed change in the RMA alters the definitions of “Developed Property” and of “Non-Residential Property” in the Rate and Method, so that they reflect what was intended by the City and property owners at the time of formation of the CFD.
Therefore, it is recommended that the City Council adopt a resolution setting a public hearing for October 16, 2018, to consider the proposed alteration of the RMA described above.
DISCUSSION
The CFD was formed pursuant to the City’s Special Tax Financing Improvement Code (Municipal Code Section 3-70.1 and following), which provides for a process to alter the RMA for the CFD. That process includes a Resolution which describes the proposed alteration, and that calls for a public hearing regarding the alteration. Following the public hearing, the City Council, if it decides to proceed with the alteration, will consider adoption of a resolution calling for a special mail ballot election of the owners of property in the CFD, to approve the alteration. The election will be conducted by the City Clerk with the assistance of the City’s Bond Counsel and the Special Tax Consultant for the CFD. If more than 2/3rds of the votes cast at the election are in favor of the alteration, the City Council will canvass the election and declare that the alteration is effective.
The Rate and Method of Apportionment for the District is proposed to be altered for fiscal years commencing with Fiscal Year 2018-2019 by amending and restating the definitions of “Developed Property” and “Non-Residential Property”. The revised definition of “Developed Property” means for each Fiscal Year: (i) all Taxable Property in Tax Zone 1 for which a building permit was issued after January 1, 2016 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied; and (ii) all Taxable Property in Tax Zone 2 which has transferred from public ownership to private ownership and has been improved with any improvements that have or have had an improvement value on the County Assessor’s roll.
The amended definition of “Non-Residential Property” means all Assessor’s Parcels of Developed Property that have been improved with vertical improvements other than one or more residential facilities, and includes Taxable Property Owner Association Property and Taxable Public Property.
As noted above, the Resolution of Consideration for the CFD sets October 16, 2018, as the date for a public hearing on the proposed changes to the RMA for the CFD.
FINANCIAL IMPACT
There is no impact to the General Fund to modify the RMA for the CFD. All costs related to the alteration proceedings are to be paid from funds derived from the special tax levy in the CFD. The annual costs to administer the CFD are to be paid from annual special taxes levied on property 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 alteration of the RMA for the CFD is being processed.
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 formation of the CFD, and the action to alter the RMA, 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 Final EIR.
RECOMMENDATION
Adopt the Resolution of Consideration to Alter the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1 and Set a Public Hearing for October 16, 2018.
Respectfully submitted,
Debbie Potter, Base Reuse & Economic Development Director
By: Michelle Giles, Redevelopment Project Manager
Financial Impact section reviewed,
Elena Adair, Finance Director