Title
Adoption of Resolution Designating Consultants and Authorizing and Directing Actions Related to the Issuance of Special Tax Bonds for Community Facilities District No. 13-1 (Alameda Landing Public Improvements). (Finance 362)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City Council formed the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements) (“CFD”) to finance certain public improvements in connection with the Alameda Landing development. In March of 2016, the City of Alameda (City) issued $15,415,000 of special tax bonds (“2016 Bonds”) for the CFD, and proceeds of the 2016 Bonds were used to acquire some of the authorized public improvements from Catellus Alameda Development, LLC (“Catellus”) pursuant to an Acquisition Agreement between the City and Catellus. The City is authorized to issue an additional $24,585,000 of special tax bonds for the CFD. Catellus has requested that the City issue the additional bonds for the CFD in order to pay costs of public improvements being constructed by Catellus in connection with the continuing development of Alameda Landing. The subject Resolution provides for the engagement of certain consultants necessary to process the proceedings for the issuance of the additional bonds.
BACKGROUND
Pursuant to a Disposition Development Agreement entered into in December of 2006, among the City, the Successor Agency to the Community Improvement Commission of the City (“Successor Agency”) and Catellus, in 2014 the City formed the CFD and determined that the City could issue, up to $20,000,000 in special tax bonds for the CFD to finance public improvements constructed by Catellus in connection with the development of Alameda Landing. At the time of formation of the CFD, the City and Catellus entered into an Acquisition Agreement whereby the City agreed to use the proceeds of special taxes levied on property in the CFD and proceeds of bonds issued by the City for the CFD to acquire public improvements constructed by Catellus and otherwise eligible to be financed by the CFD. In April of 2015, the City Council approved the annexation of the 40 acres in Phase 2 of Alameda Landing into the CFD; added to the facilities authorized to be financed by the CFD; and increased the bonded indebtedness limit of the CFD to $40,000,000.
TRI Pointe Homes, Inc. acquired property in the CFD from the Successor Agency in 2013-2015 and has constructed 91 single family homes and 162 multifamily residential units in the area of the CFD. In March of 2016, the City issued, $15,415,000 of special tax bonds, and used the proceeds of those bonds to acquire public improvements from Catellus pursuant to the Acquisition Agreement.
In November of 2017, the City Council conducted proceedings to alter the manner in which special taxes are levied on property in the CFD to exempt the property acquired by Bay Ship and Yacht unless and until it is developed for a use other than its existing use as warehouse space.
Catellus is now proceeding with the development of Phase 3 of Alameda Landing. In that regard, in August of 2020, Pulte Home Company, LLC (“Pulte”) acquired 7.5 acres of property in the CFD from the Successor Agency, and is expected to acquire an additional 6.0 acres in June of this year and 3.7 acres in 2022. It is expected that Pulte will construct 357 residential units on the property so acquired and to be acquired by it.
Catellus is now proceeding with the construction of public improvements in connection with the development of Phase 3 that are authorized to be funded by the CFD. In order to assure that funds are available for the CFD to acquire the public improvements from Catellus when they are completed, Catellus has requested that the City issue the remaining special tax bonds authorized to be issued by the City for the CFD. It is now desired that the City engage certain consultants necessary to conduct the proceedings for the additional bonds. Finally, the bonds issued for the CFD are payable from special taxes levied on property in the CFD.
DISCUSSION
Catellus has requested that the City issue the remaining authorized principal amount of the special tax bonds in order to provide funds to pay costs of the public improvements it is constructing. In order to present the City Council the documents necessary for the issuance of the additional bonds, the City needs to engage various consultants to prepare the proceedings.
The consultants include the special tax consultant currently assisting the City in administering the CFD and that assisted with the issuance of the bonds for the CFD in 2016, NBS Government Finance Group (“NBS”), the appraiser that the City used in connection with the 2016 Bonds, Integra Realty Services, using employees of the former Seevers Jordan Ziegenmeyer (“Integra”) and the municipal bond underwriter for the 2016 Bonds Stifel Nicolaus & Company, Incorporated (“Stifel”). Quint & Thimmig LLP entered into a contract with the City in 2016 to act as bond counsel and disclosure counsel for the 2016 bonds and all future series of bonds issued for the CFD. The Resolution authorizes the City Manager to enter into contracts with NBS and Integra for their services. When and if the bonds are sold, the City anticipates executing a bond purchase contract with Stifel, as underwriter for the Bonds. All costs of the consultants will be paid with proceeds of the bonds to be issued or by Catellus.
ALTERNATIVES
• Adopt a resolution designating consultants and authorizing and directing certain actions related to the issuance of special tax bonds for Community Facilities District No. 13-1
• Don’t adopt a resolution designating consultants and authorizing and directing certain actions related to the issuance of special tax bonds for Community Facilities District No. 13-1
FINANCIAL IMPACT
There is no impact to the General Fund to engage the consultants necessary to process the proceedings for the issuance of the special tax bonds. All costs related to the proceedings are to be paid either from the proceeds of the special tax bonds issued for the CFD or by Catellus.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Alameda 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 procedures for the issuance of special tax bonds for the CFD.
ENVIRONMENTAL REVIEW
On December 5, 2006, the City Council certified the Final Environmental Impact Report for the Alameda Landing Mixed Use Development Project (a Supplement to the 2000 Catellus Mixed-Use Development Project EIR) in accordance with the California Environmental Quality Act (CEQA) (State Clearinghouse #2006012091) and subsequent addenda. The CFD, and the consideration of the alteration of the RMA, are consistent with, and implement the prior approvals and will not result in any new or substantially more severe environmental impacts than were previously identified in the Supplemental EIR and addenda.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt the Resolution designating consultants and authorizing and directing certain actions related to the issuance of special tax bonds for Community Facilities District No. 13-1 (Alameda Landing Public Improvements).
CITY MANAGER RECOMMENDATION
The City has been requested by Catellus to approve the issuance of the remaining available bond capacity for the CFD. In order to issue the bonds, it requires City Council approval. Catellus is obligated to pay the issuance costs for the special tax bonds for CFD No. 13-1. These funds are being used for public infrastructure costs at Alameda Landing.
Respectfully submitted,
Annie To, Finance Director
cc: Eric Levitt, City Manager