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Adoption of Resolution Declaring Results of Special Election in Community Facilities District No. 17-1 (Alameda Point Public Services District), Determining that Alteration of the Rate and Method of Apportionment of Special Taxes for the District is Lawfully Authorized, and Directing Recording of an Amendment to Notice of Special Tax Lien. (Community Development 819099)
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District) (CFD) was formed in 2017 in connection with the development of Alameda Point, specifically the 68-acre Site A. The Resolution that formed the CFD approved a Rate and Method of Apportionment of Special Taxes for the CFD (RMA), which set forth the manner in which the City Council levies special taxes.
On February 2, 2021, the City Council adopted a resolution of consideration to alter the RMA, as reflected in the Amended and Restated Rate and Method of Apportionment of Special Taxes (Amended RMA). On February 16, 2021, a public hearing was held, and following the hearing the City Council adopted a resolution calling for a special election of the registered voters residing within the CFD regarding the proposed alteration.
The election was conducted by mail ballot with ballots due to the City Clerk on April 8, 2021. The City Clerk has canvassed the election and has determined that more than two-thirds of the ballots cast in the election were in favor of the measure. The City Council is, therefore, requested to adopt a resolution declaring the results of the election and directing the City Clerk to record an amendment to the previously-recorded Notice of Special Tax Lien for the CFD.
BACKGROUND
On March 21, 2017, the City Council adopted Resolution No. 15249 pursuant to which it formed the City of Alameda Community Facilities District No. 17-1 (Alameda Point Public Services District) (CFD), 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 Rate and Method of Apportionment of Special Taxes for the CFD (RMA), which set forth the manner in which the City Council will levy special taxes on property in the CFD to pay the costs of services eligible to be funded by the CFD and to pay the costs of the City to administer the CFD.
In 2018, it was determined that there was an error in the definition of “Developed Property” in the RMA (and a related error in the definition of “Non-Residential Property” in the RMA) that would have prevented the City of Alameda (City) from realizing the special tax revenues to be derived from property located in Tax Zone 2 of the CFD that were anticipated to be available to pay for the services at the time of formation of the CFD. To correct the error in the RMA, on October 2, 2018, the City Council adopted Resolution No. 15435 (2018 Alteration Proceedings Resolution) pursuant to which it undertook proceedings to alter the RMA in order to correct the error and to assure the correct levy of the special taxes needed to pay for the services authorized to be funded by the CFD, as was anticipated when the CFD was formed. Following the holding of an election held on December 6, 2018, at which more than two-thirds of the votes cast by the then owners of property in the CFD in the election were in favor of the alteration, the City Clerk recorded an Amendment No. 3 to Notice of Special Tax Lien on February 27, 2019 against the property then included in the CFD, Exhibit B to which described the then voter-approved alteration of the RMA.
Due to unforeseen changes in circumstances with respect to the development of the property in the CFD, the City Council has conducted proceedings to again alter the RMA so it better aligns with the property in the CFD that has been developed, is being developed, and is expected in the future to be developed. On February 2, 2021, the City Council adopted a resolution of consideration to alter the RMA as described in Exhibit A to the resolution of consideration, and as reflected in the Amended and Restated Rate and Method of Apportionment of Special Taxes set forth in Exhibit B to the resolution of consideration (Amended RMA). The resolution of consideration set a public hearing for February 16, 2021 regarding the Amended RMA. On February 16, 2021, the public hearing was held, and following the hearing the City Council adopted a resolution calling a special election of the registered voters residing within the CFD regarding the proposed alteration.
A developer of property in the CFD, Eden Housing, Inc., requested that the City Council take action to clarify the intent of the Amended RMA regarding the definition of Below Market Rate Units in the Amended RMA. On April 6, 2021, the City Council adopted a resolution clarifying the intent of that definition in the Amended RMA.
The election was conducted by mail ballot with ballots due to the City Clerk by the close of business on April 8, 2021. The City Clerk has canvassed the election and has determined that more than two-thirds of the ballots cast in the election were in favor of the measure.
The City Council is now requested to adopt a resolution declaring the results of the election and directing the City Clerk to record an amendment to the previously-recorded Notice of Special Tax Lien for the CFD. The Notice of Special Tax Lien provides all future owners of property in the CFD with knowledge of the CFD and the CFD’s current special taxing power.
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 began with the adoption by the City Council on February 2, 2021 of a resolution of consideration to alter the RMA, which set forth the Amended RMA in an exhibit, and that called for a public hearing on February 16, 2021 regarding the alteration. On February 16, 2021, the public hearing was held, and following the hearing the City Council adopted a resolution calling a special election of the registered voters residing in the CFD regarding the proposed alteration. On April 6, the City Council adopted a resolution clarifying the intent of a definition in the Amended RMA.
The election was conducted by mail ballot with ballots due to the City Clerk by the close of business on April 8, 2021. The City Clerk has canvassed the election and has determined that more than two-thirds of the ballots cast in the election were in favor of the measure.
The Resolution now before the Council formally declares the result of the special election and directs the City Clerk to record an amendment to the Notice of Special Tax Lien which was previously recorded against the property in 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 proceeds of the special tax levy on parcels in the CFD. The annual costs to administer the CFD are paid from annual special taxes levied on property included 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 which includes a procedure pursuant to which the alteration of the RMA for the CFD is being conducted.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City certified the Alameda Point Final Environmental Impact Report (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.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a Resolution declaring the results of the Special Election Regarding Alteration of the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1.
CITY MANAGER RECOMMENDATION
The City Manager recommends adoption of the proposed Resolution declaring results of the Special Election regarding the Alteration of the rate and method of Apportionment of Special Taxes for CFD No. 17.
Respectfully submitted,
Lisa Nelson Maxwell, Community Development Director
By:
Luke Connolly, Base Reuse Manager
Financial Impact section reviewed,
Annie To, Finance Director
cc: Eric Levitt, City Manager