Title
Adoption of Resolution Determining That Special Taxes Shall Cease to be Levied on Property in the City of Alameda Community Facilities District No. 4 (Demolition and Back Bone Infrastructure - Fleet Industrial Supply Center (FISC) and East Housing Sites) and Directing Recordation of Notice of Cessation of Special Tax. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The recommended action is to adopt a Resolution Determining That Special Taxes Shall Cease to be Levied on Property in the City of Alameda Community Facilities District No. 4 (Demolition and Back Bone Infrastructure - FISC and East Housing Sites) and Directing Recordation of Notice of Cessation of Special Tax.
BACKGROUND
In June of 2000, the former Community Improvement Commission of the City of Alameda (CIC) and Catellus Development Corporation (Catellus) entered into a Disposition and Development Agreement (DDA), which provided for, among other matters, the financing and installation of backbone infrastructure and the demolition of existing improvements on 87 acres of land for residential purposes and 77 acres of land for a business park constituting portions of the areas in the City then known as the FISC and East Housing, and the purchase of the property by Catellus, all as more particularly set forth in the DDA. At that time, the City and the CIC entered into the Joint Implementation Agreement in order to assure the timely and orderly development of the property, as contemplated by the DDA.
The City agreed to assist the CIC in the financing of the costs of the demolition and backbone infrastructure, and to that end on August 21, 2001, the City Council adopted Resolution No. 13378 forming the City of Alameda Community Facilities District No. 4 (Demolition and Backbone Infrastructure - FISC and East Housing Sites) (District) pursuant to the City of Alameda Special Tax Financing Improvement Code, constituting Section 3-70 (Special Tax Financing Improvement Code) of Article IV of Chapter III of the Alameda Municipal Code (Law). On March 14, 2002, the City issued its Community Facilities District No. 4 (Demolition and Backbone Infrastructure - FISC and East Housing Sites), Special Tax Bonds, Series 2002-A for the District (Bonds), the net proceeds of which were used to finance all or a portion of the costs of the demolition and backbone infrastructure. On August 31, 2001, the City recorded a Notice of Special Tax Lien (Notice of Lien) on the property in the District, which imposed a lien on the property to secure the payment of special taxes authorized to be levied by the City for the District (Special Taxes). Pursuant to Ordinance No. 2861, adopted by the City Council on September 4, 2001, the City Council authorized the levy of the Special Taxes on property in the District to pay the debt service on the Bonds and to pay administrative expenses of the District.
On November 3, 2003, the CIC issued two series of its tax allocation bonds proceeds of which were used, among other purposes, to refund in whole the Bonds, and the Bonds were paid in full and retired on November 3, 2003. Following the payment in full of the Bonds, there was no longer any need to levy the Special Taxes on property in the District.
An owner of property in the District has now requested that the City Council take the formal actions necessary under the Law to provide notice that the obligation to pay the Special Taxes has ceased and the lien imposed by the Notice of Lien is extinguished.
DISCUSSION
The District was formed on August 21, 2001 pursuant to the Law for the purpose of financing costs of demolition and public improvements related to by the development of the FISC and East Housing areas. In August of 2001, the City recorded the Notice of Lien on property in the District to secure the payment of the Special Taxes. Bonds were issued by the City for the District to pay the costs of the work. The Bonds were payable from Special Taxes levied by the City for the District on property in the District.
The work was completed and paid for years ago, and in 2003 the Bonds were paid in full and retired with proceeds of bonds issued by the former CIC. Upon the payment in full of the Bonds, the District had no further purpose.
An owner of property in the District has now requested that the City Council acknowledge that it will no longer levy Special Taxes on property in the District, and that the City Council direct the recording of a Notice of Cessation of Special Tax against the property in the District in order to extinguish the lien imposed by the Notice of Lien.
Section 3-70.42 of the Law allows for the recordation of a Notice of Cessation of Special Taxes upon a determination of the City Council, as the legislative body for the District, that the Special Taxes will cease to be levied on property in the District.
ALTERNATIVES
No alternative is being recommended because the work was completed and paid for years ago; the Bonds were paid in full and retired with proceeds of bonds issued by the former CIC; and upon the payment in full of the Bonds, the District had no further purpose.
FINANCIAL IMPACT
There is no impact to the General Fund as the District has been dormant for many years and has no further purpose.
MUNICIPAL CODE
This action is in conformance with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378 (b)(4) of the CEQA Guidelines. It does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CLIMATE IMPACT
There are no climate impacts from the adoption of this Resolution.
RECOMMENDATION
Adopt a Resolution Determining That Special Taxes Shall Cease to be Levied on Property in the City of Alameda Community Facilities District No. 4 (Demolition and Back Bone Infrastructure - FISC and East Housing Sites) and Directing Recordation of Notice of Cessation of Special Tax
CITY MANAGER RECOMMENDATION
The City Manager recommends adoption of a Resolution Determining That Special Taxes Shall Cease to be Levied on Property in the City of Alameda Community Facilities District No. 4 (Demolition and Back Bone Infrastructure - FISC and East Housing Sites) and Directing Recordation of Notice of Cessation of Special Tax
Respectfully submitted,
Elena Adair, Finance Director
cc: Eric Levitt