AgdaPkt 2010-09-13 - Laserfiche WebLink

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7.A detailed list of Facilities was attached as Exhibit B to the resolution of intention tb18rm2 the District adopted by the City Council on August 9, 20101. Tonight's Actions The Council will hold the public hearing tonight. Property owners within the proposed District have the right to submit written protests to creation of the District. No protests are expected as there is only one property owner and the property owner has petitioned the City to establish the District. After closure of the public hearing the Council will have the opportunity to adopt the first three resolutions listed above. These resolutions will create the City of Redwood City Community Facilities District No. 2010-1 (One Marina), authorize the levy of a special tax within the District, and deem it necessary to sell bonds. The City Clerk will then immediately open and tabulate submitted ballots and report the election results to the Council. The Council may then adopt a resolution declaring the election results and adopt an ordinance levying special taxes within the District. Future Actions If, as is expected, the property owner votes in the affirmative, staff will return to Council in several weeks with resolutions approving various actions that must be taken by the Council in connection with the sale of bonds. A first series of bonds will subsequently be sold with no further action required by the Council. The issuance of Mello-Roos Special Tax bonds is authorized pursuant to section IV (H) of the City's Debt Policy (Administrative Policy No. 38). Because the project is not yet constructed, the underlying real estate value is insufficient to secure the full $17 million authorization of bonds. It is expected that authorized public infrastructure will be financed in installments with bond sales in 2010, 2011, and 2014. Bonds sold in subsequent years will require additional approvals. ALTERNATIVES The Council is under no obligation to adopt the resolutions before it tonight. If the Council declines to adopt the resolutions the developer of the One Marina Project will still be required to construct all of the public infrastructure stipulated in the Development Agreement and dedicate it to the City pursuant to the terms of the Development Agreement. FISCAL IMPACT If bonds are not sold, a deposit previously paid by the developer will pay for all costs associated with creating the District. If bonds are sold, the City will reimburse the developer's deposit from the proceeds of the bonds and use bond proceeds to acquire completed portions of infrastructure authorized to be financed within the District. Regardless of when bonds are sold (and 1 The Resolution of Intention that the Council approved on August 9, 2010 provided for the bond proceeds to be used by the developer to pay the required affordable housing fees. Upon further examination staff is recommending that bond proceeds not be permitted for this purpose due to the fact that these improvements associated with affordable housing and the attendant requirements to monitor and track the disposition of such funds to be in compliance with applicable U.S. Treasury Department requirements.