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<br />jD-1- <br /> <br />independent appraisal of the property involved. <br /> <br />This matter is expected to appear before the Council three more times in compliance with <br />the statutory provisions that authorize the City to create the community facilities district and <br />issue bonds. <br /> <br />Background <br />The Pacific Shores Center Project - The Project will be situated on approximately 106.1 <br />acres of vacant land at the end of Seaport Boulevard. The Project will consist of <br />approximately 1.55 million square feet of office/R&D office space with various accessory <br />amenities, some of which are intended to benefit the occupants of the Project. Some of <br />the amenities are intended to benefit the general public, including playing fields, a childcare <br />center and a waterfront park with facilities such as a marine resource center, an aquatic <br />center, a boat dock, ~ conference facility, a restaurantlcafé, a retreat center and various <br />paths and trails. <br /> <br />Public Infrastructure - Pursuant to a development agreement, the developer has agreed <br />to pay for various improvements to Seaport Boulevard, storm drainage facilities and water <br />and sewer facilities (the "Public Facilities"). The improvements include extension and <br />widening of Seaport Boulevard, realignment of the Blomquist Avenue-East Bayshore Road <br />intersection and the construction of storm water and sewer pump stations. The City has <br />agreed to facilitate the developer's financing of those Public Facilities through the creatiort <br />of a Mello-Roos Community Facilities District and the sale of approximately $11 million in <br />bonds to be secured by a special tax on the Project property. The bonds will have a 15- <br />year term. <br /> <br />Mello-Roos Bonds - Mello-Roos Bonds are authorized pursuant to the Mello-Roos <br />Community Facilities Act of 1982, as amended. The Bonds are secured by a special tax; <br />the tax and the bonds must be approved by a two-thirds majority vote. The vote will be a <br />landowner vote, with the vote weighted by acreage. In this particular situation, there is only <br />one landowner. <br /> <br />The developer represents that it has leasing commitments for approximately 80% of the <br />Project and that it will have secured financing for the Project shortly. To allow it to fulfill its <br />leasing commitments, the developer has requested that the City proceed expeditiously to <br />establish the community facilities district and sell bonds. The bond proceeds will be used <br />to acquire the Public Infrastructure from the developer as it is completed. The developer <br />expects to construct the entire Project over an 18-month period. <br /> <br />Fiscal Impact <br /> <br />If bonds are not sold, the deposit paid by the developer will pay for all costs associated <br />with creating the community facilities district. <br /> <br />If bonds are sold, the City will reimburse the developer's deposit from the proceeds of the <br />bonds. In addition, the City will incur annual bond trustee fees, audit expenses and <br />administrative costs associated with classifying properties within the district, calculating the <br />annual special tax levies for taxable parcels within the district, and preparing and <br />transmitting to the County a list of special tax levies to be placed on the secured tax roll. <br />These costs will be recovered from the property owner or owners from the proceeds of <br />special taxes collected by the County. The finance department might incur indirect costs <br /> <br />,~_..,'-- T <br />