Title
Adoption of Resolution Authorizing the Commencement of Proceedings for the Formation of a Community Facilities District (CFD), Designating Consultants, Approving a Deposit/Reimbursement Agreement, and Authorizing and Directing Certain Related Actions For the Alameda Marina Project. (Public Works 279)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In 2018, the City Council approved the Master Plan for the Alameda Marina project, which established the requirements for a mixed-use development at the Alameda Marina site. The Developer, Alameda Marina, LLC, is requesting the formation of a Community Facilities District (CFD) to finance certain public infrastructure and certain municipal services necessitated by the project. Staff is seeking the City Council’s approval to move forward with the formation.
BACKGROUND
In July 2018, the City Council approved the Alameda Marina Master Plan, which established requirements for mixed-use development of up to 760 multi-family housing units, up to 250,000 square feet of commercial and maritime commercial space, approximately 3.59 acres of shoreline open space, and a 530 slip marina at the Alameda Marina site. The Master Plan is available on the City of Alameda’s (City) website at: <https://www.alamedaca.gov/files/assets/public/minor-planning-projects/alameda-marina-master-plan-approved-by-council-july-2018.pdf>.
The Alameda Marina, LLC (Developer) has now requested that a CFD be formed. The City previously agreed to cooperate with the Developer in the formation of a CFD to finance various public infrastructure improvements and support certain ongoing services necessitated by the redevelopment project.
A CFD establishes a tax that may be levied on a defined area to fund construction of certain public facilities/infrastructure, such as streets and sewers, as well as provide funding for ongoing services such as maintenance and public safety services. Bonds may be issued to pay for the construction of the public facilities to be repaid by the proceeds of the special tax. If the City Council approves proceeding with the formation of the CFD, the details of the improvements and the services to be funded, as well as the proposed rate and method of apportionment of the special tax, will be determined and presented to the City Council as part of the resolution of intention to form the CFD.
DISCUSSION
The Developer has now requested that the City commence the proceedings to form a CFD for the Alameda Marina project (See Exhibit 1 - Developer Request). In order to begin the process, staff recommends that the City Council now adopt a resolution directing staff to take the actions needed to prepare and present information necessary for the City Council to review and consider approval of the CFD. Staff has been working with various consultants to determine the facilities and services that will be eligible to be financed by the proposed CFD, and the process by which the City would use CFD funds to pay for the facilities when constructed by the Developer.
The proposed resolution authorizes proceeding with the formation of the CFD and also identifies the consultants necessary to assist the City in forming the CFD and issue bonds. Those consultants include NBS as Special Tax Consultant and Quint & Thimmig LLP as Bond Counsel and Disclosure Counsel, under the supervision of the City Attorney’s Office, to assist in the forming of the CFD and the issuance of bonds. The City will also contract for a Municipal Advisor to assist in these efforts. The resolution authorizes the City Manager and City Attorney to execute agreements with the firms for their services.
The proposed action also recommends execution of a Deposit/Reimbursement Agreement (see Exhibit 2) to ensure that the Developer is responsible for all costs associated with the formation of the CFD and issuance of bonds. Pursuant to the Deposit/Reimbursement Agreement, the Developer agrees to provide an initial $75,000 deposit as well as advance of additional amounts that may be necessary to pay for CFD formation costs incurred by the City in excess of the initial deposit.
ALTERNATIVES
The City Council could consider the following alternative actions:
1. Approve the resolution authorizing commencement of CFD formation.
2. Amend the requirements for commencement of CFD formation.
3. Delay commencement of CFD formation.
FINANCIAL IMPACT
There is no impact to the General Fund by forming an Alameda Marina CFD. All costs related to the formation of the CFD are to be paid by the Developer in connection with its obligations under the Deposit/Reimbursement Agreement, or will be paid from the proceeds of bonds that the City may issue for the CFD. The annual costs to administer the CFD and any bonds issued for the CFD will be paid for from annual special taxes levied on property included within the boundaries of the CFD, which will include only land within the Alameda Marina project.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Alameda Municipal Code currently contains, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the proposed CFD will be formed.
ENVIRONMENTAL REVIEW
On July 10, 2018, the City Council certified the Final Environmental Impact Report (EIR) for the Alameda Marina Master Plan in accordance with the California Environmental Quality Act (CEQA) (State Clearinghouse No. 2016102064). The formation of a CFD only involves financing for improvements that are already the subject of relevant environmental approval and thus does not present any environmental impacts or necessitate further environmental review.
CLIMATE IMPACTS
The Alameda Marina project site is identified in the Regional Sustainable Communities Strategy (Plan Bay Area) as a development site in a designated “priority development area”, which is necessary to enable the Bay Area to develop in a sustainable manner and meet the regional greenhouse gas reduction objectives. The project includes requirements for renovation/replacement of approximately 4,000 feet of existing seawall to comply with the City’s sea level rise requirements as well as the end of century requirements set forth by the San Francisco Bay Conservation and Development Commission.
RECOMMENDATION
Adopt a resolution authorizing the commencement of proceedings for the formation of a community facilities district, designating consultants, approving a Deposit/Reimbursement Agreement and authorizing and directing certain related actions for the Alameda marina project.
CITY MANAGER RECOMMENDATION
The City Manager recommends adoption of a resolution authorizing the commencement of proceedings for the formation of a CFD.
Respectfully submitted,
Gerry Beaudin, Assistant City Manager
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Nancy Bronstein, Interim Finance Director/Human Resource Director
Exhibits:
1. Request to Form a CFD
2. Agreement
cc: Eric Levitt, City Manager