CC MIN 1977 - Laserfiche WebLink

Browse Search

i 436 City Attorney Schricker stated that Council must consider two questions the policy question relating to the financ�al vehicle to be used to raise funds and the question of the specific pro�ects to be financed. James Kuebelbeck Williams-Kuebelbeck, urged Council to consider the District from the,perspective of the time when it was created, ob- serv�ng that a boom in growth was occurring tn California, and the ' concepts of new towns and composite planning were developing. He said that cities wanted control over the new kinds of development which vrould not have been possible with conventional financing. Mr Kuebelbeck noted that because of the reclamation work involved in developing Redwood Shores, the cost for needed improvements before construction could commence would have resulted in homes costing more than $60,000, or some $30,000 more than a relatively expensive home at the time, thus eliminating the opportunity to develop badly needed middle income housing Mr Kuebelbeck stated that difficulties with subsequent development of the pro,7ect were mostly related to 1969 decisions of the Government Efficiency Committee of Congress which resulted in a building mora- torium which hit at the worst possible time, since it became impos- sible to create the pro�ects which were to be the source of taxes to cover bond payments In response to question, Mr Kuebelbeck'advised that the bonds were not sold based on estimated value of the land but on a one-year forecast of Fair Market Value (FMV) : Mr. 5chricker adv�sed for the record that the District did follow the guideltnes of 1.5 per cent FMV a's the repayment capacity for issuance of long term General Obligation Bonds, based on estimated value of improvements following one year after issuance of the bonds ' He stated that the FHA moratorium made it impossible to create value. Discussion followed concerm ng the �nability of anyone to antic�pate the kind of increase in FMV of the past five years, the recommenda- tions in the report regarding the basis for bond sales, the assurances to the City that Redwood Shores would never become a burden to the ,-� City> whether the District can and should be restructured; and when it would be appropriate to consider the needed pro,7ects. City Attorney Schricker advised for the record that determination of �� policy, as a pract�cal matter, may flow from the magnitude of expenses necessary to accomplish the purpose. He suggested Council should not corrom t itself to a course of action by a policy decision�until they are acquainted with the available legal tools to accomplish their purpose Mr Fales replied to questions and commented concerning experience with Belmont County Water District, whether BCWD would be willing to annex the District, and `whether or not such annexation would be de- sirable, even if BCWD was willing to do so Mr fales distributed a report to him from the Director of Public Works of October 27, 1977 entitled "Meeting_with San Francisco Water District, 10/26/77". Mr Pusich advised that BCWD has advised since 1972 that they are in- capable of serving the District with their present equipment beyond ' the present agreement, so that a water l�ne is essential whether or not development proceeds - I± was potnted out that the annexation couid not 6e expected to repre- sent any benefit, since an assessed valuat�on (AV) tax, the annexation ' Study Session � -2 ' ' GID No. 1-64 11/7/77 � ,