AgdaPkt 2021.01.11 Amended Joint SA PFA

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7.A. - Page 2 of 25 Flood Insurance Rate Maps ("FIRM") does not meet National Flood Insurance Program minimum standards for reducing the risks associated with a major flood event (a flood with a one percent chance of occurring in any given year). As a result, the area in the District has been designated as a high-risk area, also known as a Special Flood Hazard Area (SFHA). Flood insurance is required for structures with mortgages from federally regulated or insured lenders for properties that are shown on the FIRM to be in the SFHA. Structures without flood insurance in Special Flood Hazard Areas are ineligible for any type of federal assistance in the event of flooding. Flood insurance for structures in Special Flood Hazard Areas is several times more expensive than for structures not in such areas. The Property Owners propose to make the improvements to the Seaport Centre Levee that are necessary for FEMA to accredit the Seaport Centre Levee ("Seaport Centre Levee Improvements") and concurrently construct a levee and related flood protection facilities along the perimeter of Seaport Plaza facing Redwood Creek ("Seaport Plaza Levee Improvements"; together with the Seaport Centre Levee Improvements, "Levee Improvements"), and upon completion of those Levee Improvements transfer ownership of the Levee Improvements to the City. The Property Owners would front the costs of the Levee Improvements construction. No bonds would be issued. The City would pay the Property Owners for the Levee Improvements over time using the proceeds of CFD special taxes paid by the Property Owners. The Property Owners would pass the special taxes on to their tenants per the terms of their leases. Steps Undertaken This matter was initially introduced at the October 26, 2020 Council meeting. At its November 23, 2020 Council meeting the Council adopted a resolution establishing the City of Redwood City Community Facilities District No. 2020-1 (Seaport Centre/Seaport Plaza) (the "CFD"). At its December 21, 2020 Council meeting the Council adopted a special tax ordinance authorizing the City to levy and collect special taxes on properties in the CFD. A portion of these taxes will be collected to pay for the same services that are presently financed with Seaport Centre Maintenance District (the "District") special assessments. Accordingly, also at its December 21 meeting, the Council adopted a resolution of intention to dissolve the District and calling for a public hearing on this matter, scheduled for January 11, 2021. The CFD was established to facilitate financing of the City's acquisition of improvements to the Seaport Centre levee and construction of a levee to protect Seaport Plaza from salt water intrusion. Pursuant to a mailed -ballot property owner election, the owners of Seaport Plaza and Seaport Centre approved special taxes to pay for the acquisition of the levee improvements, maintenance of the levees, and maintenance of wet utilities benefitting Seaport Centre. The CFD special taxes levied for maintenance of the Seaport Centre wet utilities will replace the District special assessments, and the District is no longer needed. The staff reports for the October 26, November 23 and December 21, 2020 City Council meetings, which provide more detailed background information, are included as Attachment A, B, and C, respectively. Page 2 of 5 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 178