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Page 3 of 7 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org price over 15 years. The interest rate on the unpaid balance of the installment purchase price will be set annually at the Wall Street Journal Bank Prime Rate, plus 200 basis points. Establishment of Community Facilities District On October 26, 2020, concurrently with Council’s approval of the Levee Financing and Improvement Agreement, HCP and MetLife as the owners of Seaport Centre and Seaport Plaza petitioned the City to establish a special taxing district to finance public infrastructure and services within a defined area, known as a community facilities district. At that meeting, the City Council adopted a resolution of intention to establish the City of Redwood City Community Facilities District No. 2020-1 (“Seaport Centre/Seaport Plaza”) and a resolution of intention to incur indebtedness. Pursuant to a special election by mailed ballot, HCP and MetLife as the qualified electors approved special taxes to pay for the acquisition of the New Levee, maintenance of the New Levee, and maintenance of the Wet Utilities benefitting Seaport Centre. On November 23, 2020, the City Council adopted a resolution establishing the City of Redwood City Community Facilities District No. 2020-1 (Seaport Centre/Seaport Plaza) (the “CFD”). The CFD levied special taxes levied for maintenance of the Wet Utilities to replace special assessments previously imposed by the Maintenance District. The November 23, 2020 CFD formation resolution specifies the method for calculating these special taxes and allowed uses of the special tax proceeds. HCP, MetLife and SCOA were required to front the full costs of the New Levee; no bonds were issued. Following completion and FEMA accreditation of the New Levee, the LFIA provides for transfer ownership of the New Levee to the City under the Form Purchase Contract. A modified version of the Form Purchase Contract was executed prior to this meeting. Upon acceptance of the New Levee, the City begins making payments to HCP and MetLife each September 1 for 15 years using the proceeds of the CFD special tax revenue. The LFIA also required that City dissolve the then existing Maintenance District with the CFD assuming responsibility for financing the operations and maintenance of the Seaport Centre Wet Utilities, and initially for the Seaport Centre Levee and, upon acceptance by the City, the New Levee. The LFIA and CFD formation resolution provided that the Maintenance District’s reserve balance would be transferred to a new CFD reserve account to serve as an initial reserve for the Seaport Centre Levee and Wet Utilities. On December 21, 2020, the City adopted a resolution declaring, among other things, its intention to dissolve the Maintenance District and deposit the Maintenance District’s reserve funds into the CFD’s maintenance reserve fund. On January 11, 2021, the City Council adopted a resolution dissolving the Seaport Centre Maintenance District. The adoption of the resolution led to the dissolution of the Maintenance District on June 30, 2021, and transfer of the Maintenance District’s remaining fund balance to the new CFD. In November 2022, MetLife and HCP substantially completed the New Levees. In October 2024, FEMA accredited the New Levee and asserted that the New Levee met the minimum standards for reducing the risks associated with a major flood. ANALYSIS When the New Levee is complete, the LFIA requires that the City accept it in a manner consistent with acceptance of public improvements and acquire it in accordance with the LFIA. The parties wish to modify 8.C. - Page 3 of 117 193