Laserfiche WebLink
7.A. - Page 8 of 25 <br />The Seaport Centre Levee as shown on the current Federal Emergency Management Agency ("FEMA") <br />Flood Insurance Rate Maps ("FIRM") does not meet National Flood Insurance Program minimum <br />standards for reducing the risks associated with a major flood event (a flood with a one percent chance <br />of occurring in any given year). As a result, the area in the Maintenance District has been designated as a <br />high-risk area, also known as a Special Flood Hazard Area (SFHA). Flood insurance is required for structures <br />with mortgages from federally regulated or insured lenders for properties that are shown on the FIRM to <br />be in the SFHA. Structures without flood insurance in Special Flood Hazard Areas are ineligible for any type <br />of federal assistance in the event of flooding. Flood insurance for structures in Special Flood Hazard Areas <br />is several times more expensive than for structures not in such areas. <br />The Property Owners propose to make the improvements to the Seaport Centre Levee that are necessary <br />for FEMA to accredit the Seaport Centre Levee ("Seaport Centre Levee Improvements") and concurrently <br />construct a levee and related flood protection facilities along the perimeter of Seaport Plaza facing <br />Redwood Creek ("Seaport Plaza Levee Improvements"; together with the Seaport Centre Levee <br />Improvements, "Levee Improvements"), and upon completion of those Levee Improvements transfer <br />ownership of the Levee Improvements to the City. The Property Owners would front the costs of the Levee <br />Improvements construction. No bonds would be issued. The City would pay the Property Owners for the <br />Levee Improvements over time using the proceeds of CFD special taxes paid by the Property Owners. The <br />Property Owners would pass the special taxes on to their tenants per the terms of their leases. <br />Proposed Community Facilities District; Proposed dissolution of Maintenance District <br />The Property Owners have petitioned the City to establish a community facilities district ("CFD") that <br />would do two things: <br />1. Levy a "facilities special tax" over 15 years to finance the City's purchase of the Levee <br />Improvements. The City would have no obligation to pay the purchase price for the Levee <br />Improvements from any City funds other than the facilities special taxes. <br />2. Levy a perpetual "services special tax" to finance the ongoing operation and maintenance of the <br />Levee Improvements and the levee and storm drain, sewer and water facilities currently <br />maintained and operated by the City with funds from the Maintenance District. <br />The Maintenance District will no longer be needed after the CFD is created, so the Property Owners also <br />have petitioned the City to dissolve the Maintenance District, effective June 30, 2021 (or such later date <br />after delinquent assessments, if any, are fully paid), and transfer the Maintenance District's maintenance <br />reserve to the CFD. <br />The City owns three parcels in the Maintenance District. The Property Owners have asked the City to <br />include those parcels in the CFD, but the parcels will not be obligated to pay special taxes unless the City <br />sells or leases them to a non-governmental entity. In order to ensure that these parcels will be subject to <br />the special tax upon sale or lease to a non-governmental entity, the City will be one of the landowner <br />electors in the CFD election and will sign a Public Agency Statement and Consent. <br />Page 3 of 7 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />184 <br />