Adoption of Resolution Declaring Intention to Establish the City of Alameda Community Facilities District (CFD) No. 22-1 (Alameda Marina), and to Authorize the Levy of Special Taxes Therein; and Adoption of Resolution Declaring Intention to Incur Bonded Indebtedness of the Proposed City of Alameda Community Facilities District No. 22-1 (Alameda Marina). (Public Works 80700001)
Yeah. Five Each has adopted a resolution declaring intention to establish the city of Alameda Community Facility, District number 22, dash one Alameda Marina and authorize levy of special taxes there in an adoption of resolution declaring it. You know what that is? You guys just. Read the whole thing on mute. I am so sorry, I. You didn't read the whole thing on mute. You got to declaring. Oh, yeah. Declaring intention to incur bonded indebtedness of the proposed development community facility. District number 22, dash one. And at least Laura has a secret code, has a side job as an auctioneer, as you can tell from the speed with which she's able to get those out. I can't talk that far that fast. Thank you. And with us, we have our public works director, Aaron Smith. Welcome. And do you want to. Well, we could do this one or two ways, counselor. Harry Spencer, you pulled this item. Was it to hear an explanation? Did you have comments or questions? I have questions. All right. So why don't we start with your questions and we'll see if we can keep moving through our consent calendar and get to our rather lengthy, regular agenda. Blogs are also joined by Liz Acord. Hello, welcome. And oh my goodness, the Gainesville here bus. Well, so just like that they appear and director Smith you want to just introduce the team who's accompanying your. Certainly. Ken, Jerry, that okay with you? Go ahead. Oh, I'm sorry. Totally fine. It's Women's History Month, so I'm kind of. Okay. Good evening, Madam Mayor. Vice Mayor, members of council. I am Aaron Smith, public works director here with me this evening for this item is called to make our Urban Council. Sarah Mares Our special tax consultant, Michael Bush, our municipal advisor, Liz Acord, our public works coordinator. We also have from Al Main Arena Sean Murphy. Sean, I'm going to let you introduce Little Charles as your attorney. Charles Olson. Also here with us is Elizabeth Mackenzie from our attorney's office. And I believe that's all the squares since I think I did it. Yeah, okay. We ran out of squares with all this stuff in there. So, you know, though, for the benefit of the public, who's watching? Could one of you, any one of you on the screen and that includes your assistant city manager, Jerry Bowden. Just give us an overview of what's with this item, both this item and the the next one. But well, let's stick to one. What's this item about? Sure. Thank you. Thank you. Mayor. Vice Mayor, members of the City Council. Jerry Bowden, assistant city manager. This is a community facility, community facilities district discussion. This is part of the Alameda Marina project. This is a special financing mechanism that's been used several times in the city of Alameda. This particular master plan for the area anticipated significant infrastructure costs. The the community facilities district that is before you this evening and tonight is really just moving forward with resolutions of intention for this item and the following item, which is really an opportunity for the public to see what we're up to for the first time in a public setting. And essentially the districts themselves are designed to finance a seawall as well as as well as some some road improvements out on Clement Avenue. And that is obvious that so far from the total infrastructure investment that's going into this area, but that's the those are the items that we put into this district, which will essentially help to to finance those those infrastructure improvements that will have community wide benefits in a lot of ways, but that are associated with the project. So there's a seawall that goes along the outer edge of the project. And then if you've been along Clement Avenue in recent months, you've seen all of the improvements that have gone in out there as well. So, you know, we can certainly there's a there's a large team. This this is a process that's somewhat unique. It's not something that we do every day. But several of the people on the screen have done this work with the city in prior examples. And so we're happy to answer any questions that you may have about this action and the process going forward from here. Thank you, Mr. Burton. Okay, let's go to Councilmember Harry Spencer pulled this item. Councilmember, the floor is yours. Thank you. Mayor and I had shared my questions with the city manager in advance, and I'm not sure he was able to get clarification. But there is a sample tax bill that is attached to the item. And if it's possible to and I'm sorry to ask that the clerk not that'd be nice if you could show that because I'll be referencing that. But that tax bill as, as you're working on that, it references town home sample tax bill and it shows the CFP on an annual basis of being an additional 5500 up to almost $8,000 per year, so that the annual property taxes and special taxes for these properties that it says it starts at 1600 square feet and at a price base price of just over $1,000,000 would end up being from 20 to $26000 per year for these taxes. And my question is that I know that this project included some condominiums, and I didn't see a tax bill for those units. And I don't know if when that shows a town home of 1680 square feet. Is that the condominium or what is the price points we're anticipating of what the additional taxes would be for condominiums, for the CFD. He'd like to take that. I will. That was. A hello. There. Amazon. The screen change just as I said that. Well, and just introduce yourself when you do, because it's I don't recognize voices readily. So. Yes, Miss Maris, please. Hi. Good evening, Mayor. Vice Mayor, members of the council. My name is Sarah Myers with NBS. I'm acting in the capacity as the special tax consultant for this project and I prepared this sample tax bill. So within this particular project, only the first phase of the development is included, and that includes only the townhomes that are being developed. So it is the townhome product that is in this district by itself. The size ranges you see and the lowest base prices for those units are representative of the product that is being developed. And then you can see the additional information that shows the general property taxes, the other items that are on the tax bill, other special assessments or taxes or charges, and then specifically this particular CFD special tax to come up to the total amount of the property taxes, special charges and CFD charges that would go on these parcels to result in the overall effective tax rate of 1.9% across the board. Thank you, Mr. Mary. That was helpful. Councilmember Spencer, you still on the floor? Okay. Thank you. And I appreciate that clarification. So I just want to confirm then when the can whatever phase the condos are in that this will not have any relevance to that. Or if they do a CFD, then we will not be these numbers will not apply at all. The Community facilities district number 20 2-1 for Alameda marina that has the facility's funding is not applicable at this time to any property other than those townhomes. There are if you look at the boundary map associated with this item, the other phases of this project are in the what's called future annexation area. And so there is potential that they could be annexed in the future to this CFD, but they're not in the boundary at this time and those proceedings would come before you at a later date if there is a desire to annex that property to the CFD. To, too. Yes. All right. So then is that staff's position that that is unlikely of occurring or that's actually probable? I'll I'll take that one, if that's all right with you. Mr. BURTON. So, Councilmember Herr Spencer, it is entirely possible. There's there's a there's a significant amount of infrastructure going into this area. And the idea of increasing bond capacity over time is something I think that that is is probable, but not it's not readily available at this time or not a decision that the developer can make at this time , because those projects just aren't before us to be constructed at this point in time. So when they when they are ready to come online, there's that possibility. If we're still looking for ways to finance infrastructure at that point in time. You know, with the anticipated square footage of those units would be. I don't I'd have to look to the development team to see if they have any estimates on the condominium projects. Development team, any, any. And we don't want you to guess, obviously, but if. Yes. Sorry. Hi. Hi, Mr. Murphy from Alameda Marina. Did you want to. You want to. Offer. Me to answer so. Good evening, Madam Mayor. Council members. Thank you for hearing this consent item. It's important item for our project and for, frankly, the seawall, which is critical infrastructure. So the answer, councilman, or of question, the future condominiums will likely have a average size of between 700 to 1100 square feet. Spencer, you have a first if you want. Thank you. Thank you. And that's good to know, because that's significantly less than the 1680. So that if, in fact, a staff comes back at some point to recommend that this S.F. that those condos be annexed into the CFD, then could I anticipate that it would be a percentage of based on the square footage? Because I'm trying to find out. I'm hoping that those condos will be somewhat priced favorably so that people in the middle will be able to try to buy them. And my concern will be that all these additional charges will price them out of the market and actually defeat the purpose. If those parcels are annexed in the future, we would do a similar analysis to that sample tax bill that you see to determine what the effective tax rate is. And these special tax rates would be set accordingly. Thank you. That completes my questions. Okay. Questions, comments or a motion from other council members. And thank you all for being here, all of you experts. Councilor Daisuke, I think I saw your hand go up. Yeah, yeah. Just a quick comment. I'll be voting no on this, because I do believe for the same reason that a recent and nearby project, I just think there ought to be more affordable housing. So I appreciate that that I think 60% of the overall project is affordable. But the reality is our local rules require 15% off the off the bat. And I think, you know, the density bonus that was obtained by this, you know, they're getting a bonus on the number of additional units that they can build for doing something that they were required to do anyways. Usually when you get a bonus, it's because you did something above and beyond. And so I think the 16% is just it's not above and beyond. So that's why I'll not be voting for this. Thank you. Thank you. Conservation Council member Spencer. I'd just like to clarify. How many townhomes are there in this complex or this development total? You have that information? Mr. MURPHY. Yes. There is 182 townhomes within the development. 25 of those 182 are affordable and therefore exempt from the CFD. In the rest of the units, because isn't this whole complex like 760 units? That's correct. So what's the rest of the units then? That is a combination of apartments and condominiums of higher density, basically medium density project. Okay. And then the apartment happens to the apartments in regards to paying their share of CFD. So there is a significant infrastructure cost across the the various parcels, the apartments. There are a cost of about $12 million for total infrastructure costs that are outside of the CFD. And so it just it's significant there's significant infrastructure cost for this project in comparison to its land area. But do they pay me to continue their. Yes. Yes. Yes. But do they pay a CFD then for those units over time, or do they just pay the 12 million and then they're done because it's in the CFD over time, like it's 30 years or something. There's a CFD. 20 2-2. But I turn that over to Sara or Jerry to to speak about. Well, we're not going to speak about it now because we're on this particular item, but we will get to it next because it was also full of guilt. So every your question is what again, are you going to what do you think we're going to be hearing about that? So I'll go ahead and I'll move the item. Okay. So you move adoption of this resolution. I think you do have a Second Vatican Council councilmember, John. That's why it's seconds. All right. Any further discussion seeing then maybe have a roll call vote, please. And that was a doctrine of both resolutions, correct? No, it's not just one. There's two resolutions. Oh, yes. Yes. We're within the right item. 1783. It has two resolutions within its, I don't think exactly. Councilmember de SAG. No. Sir. Spencer Knox. Right. I know the mayor as the Ashcraft I. That carries 4 to 1. All right. Thank you, everybody who was on the screen. But don't go anywhere because we're going to close this item and we are going to move on to item five I. And Madam Clerk, if you would, introduce that item for us, please. That Senate resolution declaring intention to establish the city of Alameda facilities, district number 22 attached to Alameda Marina, shoreline improvements, maintenance and adaptive measures, and to authorize levy of special taxes there in adoption of resolution declaring intention to incur bonded indebtedness of the proposed city of the account for this District 20 2-2.