Quint & Thimmig LLP 1/2/22 3/20/22
01019.32:J17593
RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF ALAMEDA 2263 Santa Clara Avenue, Room 380 Alameda, CA 94501 EXEMPT FROM RECORDER’S FEES Pursuant to Government Code Sections 6103 and 27383 NOTICE OF SPECIAL TAX LIEN CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-1 (ALAMEDA MARINA) -1-
NOTICE OF SPECIAL TAX LIEN City of Alameda Community Facilities District No. 22-1 (Alameda Marina) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and 3-70.1 et seq. of the Alameda Municipal Code (the “Law”), the undersigned City Clerk of the City of Alameda (the “City”), County of Alameda, State of California, hereby gives notice that a lien to secure payment of a special tax which the City Council of the City authorized, is hereby imposed. The special tax secured by this lien is authorized to be levied for the purpose of paying principal and interest on bonds, the proceeds of which are being used to finance a portion of the costs of certain public improvements, and to pay costs of the administration of such bonds and of the District (as defined below), as such public improvements are described on Exhibit A attached hereto and by this reference made a part hereof. The special tax is authorized to be levied within the City of Alameda Community Facilities District No. 22-1 (Alameda Marina) (the “District”) which has now been officially formed and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is permanently satisfied and cancelled in accordance with law or until the special tax ceases to be levied and a notice of cancellation of special tax is recorded in accordance with Section 3-70.76 of the Law. The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. Conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied in whole or in part are as provided in Exhibit B hereto. Notice is further given that upon the recording of this notice in the office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the District in accordance with Section 3115.5 of the California Streets and Highways Code. The name(s) of the owner(s) of the real property included within the District and the assessor’s tax parcel(s) numbers of all parcels or any portion thereof which are included within the District, in each case which are not exempt from the special tax and as they appear on the latest secured assessment roll as of the date of recording of this Notice or as otherwise known to the City, are as set forth in Exhibit C attached hereto and hereby made a part hereof. Reference is made to the boundary map of the District recorded on March 18, 2022 in Book 19 of Maps of Assessment and Community Facilities Districts at Page 33 (instrument no. 2022057086), in the office of the County Recorder for the County of Alameda, State of California, which map is now the final boundary map of the District. -2-
For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Finance Director of the City of Alameda, 2263 Santa Clara Avenue, Alameda, CA 94501, telephone number (510) 747-4888. Dated: _________________, 2022 By: City Clerk, City of Alameda A-1
EXHIBIT A CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-1 (ALAMEDA MARINA) DESCRIPTION OF FACILITIES ELIGIBLE TO BE FUNDED BY THE DISTRICT FACILITIES The District shall be eligible to finance all or a portion of the costs of the following facilities constructed or to be constructed in the vicinity of the District and the potential annexation area to the District: • Seawall Improvements, including but not limited to the reconstruction of approximately 4,009 linear feet of shoreline embankments, seawall, bulkheads and revetment slopes. The improvements include, but are not limited to overwater demolition of existing structural features, re-grading and installation of riprap (including earth removal and grading), removal of existing seawall and pile driving steel members along with backfill (including lava rock) and lagging installation, construction of cast-in-place concrete walls, placement of new cast-in-place deadman anchor, installation of tie rods, installation of interlocking steel sheets and including related appurtenances. • Outfall Construction, including but not limited to acquisition and installation of stormwater out-fall improvements consisting of reinforced concrete piping and related headwall and related appurtenances, as well as construction of temporary cofferdam to control seawater during construction (including a concrete headwall and storm drain piping). • Promenade Wharf Retrofit, including but not limited to structural retrofit of existing promenade, consisting of installation of precast concrete piles, steel girders, overwater demolition of deteriorated wood piles and seismic jacketing of wood piles, and related appurtenances. • Boat Hoist construction, including but not limited to pile driving precast concrete and steel piles, installation of an elevated cast-in-place concrete platform, and related appurtenances. • Graving Dock Construction, including but not limited to excavation, removal of deteriorated lagging, installation of steel sheets and precast concrete piles, backfill and compaction, and related appurtenances. • Clement Avenue Improvements, including but not limited to the reconstruction of approximately 4,450 linear feet of Clement Avenue for the frontage from Alameda Marina Drive to Willow Avenue and including but not limited to demolition of existing improvements, grinding and overlay of new asphalt paving, upgrading of underground conduits, upgrading of storm and sewer drain catch basins and manholes, removal of existing water service, installation of street lights, sidewalks, curb and gutter and landscaping and irrigation system, and fencing, construction of dedicated bike lane and striping and signage, and related appurtenances. The Facilities eligible to be financed are to include the costs of design, engineering and planning, the costs of any environmental or other studies, surveys or reports, the cost of any A-2
required environmental mitigation, soils testing, permits, plan check and inspection fees, insurance, legal and related overhead costs, coordination and supervision, City of Alameda staff and consultant costs, and any other costs or appurtenances related to any of the public improvements to be financed. OTHER The District may also finance any of the following: • Bond related expenses, including underwriters discount, appraisal and absorption study costs, reserve fund, capitalized interest, financial advisor, special tax consultant, bond counsel and underwriters’ counsel fees and expenses, landowner counsel fees and expenses, official statement printing, and all other incidental expenses. • Administrative fees and expenses of the City and the Bond trustee or fiscal agent related to the District and the Bonds, and costs of the City or designee in complying with disclosure requirements of the California Government Code and federal securities laws. • Reimbursement of costs related to the formation of the District and the formation by the City of a community facilities district to fund maintenance of seawall and shoreline improvements, and adaptive measures related to the Seawall Improvements described under the heading “Facilities” above, in each case advanced by the City, any landowner or developer of property in the District, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the City, any landowner or developer of property in the District or any party related to any of the foregoing, for facilities or other purposes or costs of the District.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-1 B-1 EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-1 (ALAMEDA MARINA) A Special Tax, as hereinafter defined, shall be levied on all Assessor’s Parcels in the City of Alameda (the “City”) Community Facilities District No. 22-1 (Alameda Marina) (“CFD No. 22-1”) and collected each Fiscal Year commencing in Fiscal Year 2022/23, in an amount determined by the CFD Administrator, through the application of the Rate and Method of Apportionment of Special Taxes as set forth below. All of the real property in CFD No. 22-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: “Accessory Dwelling Unit” or “ADU” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2, as may be amended from time to time, that is accessory to a single-unit dwelling. The ADU may be on the same Assessor’s Parcel as the single-unit dwelling or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Dwelling Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is not considered a separate Dwelling Unit from the primary Dwelling Unit on such Assessor’s Parcel for purposes of the Special Tax. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will not be subject to the levy of the Special Tax. “Acre” or “Acreage” means that acreage shown on the Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or Assessor’s Data shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon the applicable Final Subdivision Map or parcel map, or by using available spatial data and GIS. “Act” means the City of Alameda Special Tax Financing Improvement Code, Section 3-70.1 et seq. of the City’s Municipal Code, as in effect at the time of formation of CFD No. 22-1. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 22-1: the costs of any paying agents/fiscal agents/trustees related to CFD No. 22-1 Bond payments (including the fees and expenses of related counsel); the costs of computing the Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code and federal securities laws, or otherwise related to CFD No. 22-1 or CFD No. 22-1 Bonds; costs of responding to City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-2 B-2 public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Taxes or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay rebate to the federal government related to CFD No. 22-1 Bonds; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD No. 22-1. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22-1 for any other administrative purposes of CFD No. 22-1. “Apartment Property” means an Assessor’s Parcel of Developed Property on which all or any portion of a structure or structures with multiple for-rent Dwelling Units are located. If Apartment Property is subsequently reclassified as Residential Property, Special Taxes levied on such reclassified Assessor’s Parcels shall be modified to match those of Residential Property. “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, and Dwelling Units. “Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Assigned Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 22-1. “Backup Special Tax” means the Backup Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with the applicable subsection of Section C below. “Below Market Rate Units” or “BMR Units” means Dwelling Units located on one or more Assessor’s Parcels of Residential Property or Townhome Property that are subject to affordable housing restrictions pursuant to City Municipal Code Section 30-16. Units constructed within CFD No. 22-1 shall be designated as BMR Units by the CFD Administrator in the chronological order in which the Building Permits for such BMR Units are issued. “Building Permit” means a permit issued by the City for new construction of a residential or non-residential building on an Assessor’s Parcel. “Buildout” means the state of maximum development of CFD No. 22-1 and any property annexed thereto, based on plans and anticipated development.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-3 B-3 “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes. “CFD No. 22-1” means City of Alameda Community Facilities District No. 22-1 (Alameda Marina), established by the City Council pursuant to the Act. “CFD No. 22-1 Bonds” means bonds or other Debt (as defined in section 3.70.14 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for CFD No. 22-1 under the Act, and secured by pledge of the Special Taxes. “City” means the City of Alameda, California. “City Council” means the City Council of the City, acting as the legislative body of CFD No. 22-1. “County” means the County of Alameda. “Debt Service” means for each Debt Year, the total amount of principal and interest due on any outstanding CFD No. 22-1 Bonds. “Debt Year” means the twelve (12) month period ending on the second debt service payment date of each calendar year. “Developed Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit was issued after January 1, 2021 and on or before May 1st of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single family attached or detached dwelling, townhome, condominium, or otherwise. The number of Dwelling Units assigned to each Assessor’s Parcel may be determined by the CFD Administrator (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Dwelling Unit for the purposes of the Special Tax. “Exempt Property” means all property located within the boundaries of CFD No. 22-1 which is exempt from the Special Tax pursuant to Section E below. “Expected Dwelling Units” means the number of Dwelling Units anticipated to be developed in each Land Use class as shown in Table 2. “Expected Revenue” means the Special Tax revenue expected to be generated by each Land Use Class as shown in Table 2. “Final Map Property” means, in any Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner Association Property, and Taxable Public Property, for which a Final Subdivision Map has recorded prior to May 1st of the preceding Fiscal Year, but no earlier than January 1, 2021. “Final Subdivision Map” means a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-4 B-4 Code 4285, that creates individual lots for which Building Permits may be issued without further subdivision of such property. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “GIS”, or geographic information system, means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 22-1 Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 and Table 2. “Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Floor Area” means the total building square footage of the non-residential building(s) or the non-residential portion of a building with both residential and non-residential areas located on an Assessor’s Parcel of Developed Property, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or the records of the City’s building division. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit permitting the construction of one or more non-residential buildings or facilities has been issued. “Outstanding CFD No. 22-1 Bonds” means all CFD No. 22-1 Bonds which are outstanding under and in accordance with the provisions of the Indenture. “Property Owner Association Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 22-1 that is owned by a property owner association, including any master or sub-association, but not including any such property that is located directly under a residential structure. “Proportionately” means, for Developed Property and Final Map Property, that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal within each respective Tax Zone. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal within each respective Tax Zone. “Public Property” means property within the boundaries of CFD No. 22-1 owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the federal government, the State, the County, the City, or any local government or other public agency, provided that any property leased by a public agency to a private entity shall be taxed and classified according to its use.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-5 B-5 “Residential Property” means all Assessor’s Parcels of Developed Property that is not Townhome Property or Apartment Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Special Tax(es)” means the special tax or special taxes to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 22-1 to fund the Special Tax Requirement. “Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 22-1 to (1) pay Debt Service on all Outstanding CFD No. 22-1 Bonds which is due in the Debt Year that commences in such Fiscal Year; (2) pay Administrative Expenses; (3) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 22-1 Bonds; (4) provide any amount required to establish or replenish any operating reserve held by the City for Administrative Expenses; (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4). The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City’s sole discretion) by (i) interest earnings on or surplus balances in funds and accounts for CFD No. 22-1 Bonds to the extent that such earnings or balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding CFD No. 22-1 Bonds or other indebtedness as determined by the CFD Administrator. “State” means the State of California. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD No. 22-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD No. 22-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD No. 22-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 22-1 which are not exempt from the Special Tax pursuant to law or Section E below. “Taxable Property Owner Association Property” means all Assessors Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. “Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section E herein. “Taxable Welfare Exempt Property” means all Assessors Parcels of Welfare Exempt Property that are not exempt pursuant to Section E herein.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-6 B-6 “Townhome Property” means Residential Property generally characterized as having a direct ground floor private entry where living space occurs on multiple levels of roughly the same proportion and having at least one vertical wall extending from ground to roof dividing it from the adjoining Dwelling Unit. “Trustee” means the trustee or fiscal agent acting as such under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, Taxable Property Owner Association Property, Welfare Exempt Property, or Taxable Public Property. “Welfare Exempt Property” means all Assessor’s Parcels within the boundaries of CFD No. 22-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD No. 22-1. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent an Assessor’s Parcel(s) of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor’s Parcel(s) pursuant to Section C. Each Fiscal Year, all Assessor’s Parcels within CFD No. 22-1 shall be classified as follows: 1. Each Assessor’s Parcel shall be determined to be Taxable Property or Exempt Property. 2. Each Assessor’s Parcel of Taxable Property shall further be classified as Developed Property, Final Map Property, Taxable Public Property, Taxable Property Owner Association Property, Taxable Welfare Exempt Property, or Undeveloped Property. Taxable Property shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment of Special Taxes determined pursuant to Sections C and D below. 3. Each Assessor’s Parcel of Developed Property, Taxable Public Property and Taxable Welfare Exempt Property shall further be classified as Townhome Property, or Non-Residential Property. C. MAXIMUM SPECIAL TAX RATES – TAX ZONE NO. 1 1. Developed Property and Final Map Property The Maximum Special Tax for each Assessor’s Parcel of Developed Property and Final Map Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-7 B-7 a. Assigned Special Tax The Assigned Special Tax for each Assessor’s Parcel of Developed Property and Final Map Property is shown in Table 1. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY AND FINAL MAP PROPERTY FISCAL YEAR 2022/23 Land Use Class Description Assigned Special Tax 1 Townhome Property – Greater Than or Equal to 2,680 Square Feet $7,942 per Dwelling Unit 2 Townhome Property – 2,430 – 2,679 Square Feet 7,757 per Dwelling Unit 3 Townhome Property – 2,180 – 2,429 Square Feet 7,017 per Dwelling Unit 4 Townhome Property – 1,930 – 2,179 Square Feet 6,992 per Dwelling Unit 5 Townhome Property – 1,680 – 1,929 Square Feet 6,091 per Dwelling Unit 6 Townhome Property – Less Than 1,680 Square Feet 5,498 per Dwelling Unit 7 Non-Residential Property 0.75 per Square Foot of Non-Residential Floor Area Taxable Public Property and Taxable Welfare Exempt Property shall continue to be assigned to the same land use class as the property was assigned to before becoming Taxable Public Property or Taxable Welfare Exempt Property. Taxable Property Owner Association Property shall be assigned to land use class 7. b. Backup Special Tax The Backup Special Tax per Land Use Class for each Assessor’s Parcel of Developed Property and Final Map Property, is calculated as follows: Backup Special Tax = Expected Revenue / Dwelling Units or Non-Residential Floor Area on Developed Property and/or Dwelling Units or Non-Residential Floor Area expected on Final Map Property For each Land Use Class, by reference to Table 2, should the number of Dwelling Units or Non-Residential Floor Are be less than the Expected Dwelling Units or Non-Residential Floor Area when all Assessor’s Parcels are classified as Developed Property and Final Map Property, the Backup Special Tax per Dwelling Unit or Square Foot of Non-Residential Floor Area shall be adjusted so that the Backup Special Tax per Dwelling Unit or Non-Residential Floor Area is sufficient to generate the Expected Revenue from the levy of Special Taxes on Assessor’s Parcels in each Land Use Class in any Fiscal Year. The CFD Administrator shall update Table 2 with the revised Dwelling Units or Non-Residential Floor Area and Expected Revenue to be derived from each Land Use Class.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-8 B-8 TABLE 2 EXPECTED DWELLING UNITS AND EXPECTED REVENUE FISCAL YEAR 2022/23 Land Use Class Expected Dwelling Units/Square Feet of Non-Residential Floor Area Expected Revenue 1 13 $103,246 2 13 100,841 3 21 147,357 4 58 405,536 5 14 85,274 6 38 208,924 7 3,000 2,250 Prior to a sale of CFD No. 22-1 Bonds, if a Land Use Class change for an Assessor’s Parcel or Assessor’s Parcels is proposed or identified that will result in a change in the Expected Revenues, no action will be needed pursuant to this Section. Each Fiscal Year, the CFD Administrator shall update Table 2 to show the revised Units and Expected Revenues if a Land Use Class change has been approved. After a sale of CFD No. 22-1 Bonds, if a Land Use Class change for an Assessor’s Parcel or Assessor’s Parcels is proposed or identified, the following must be applied: If the Special Tax revenue from the levy of Special Taxes on Assessor’s Parcels in each respective Land Use Class calculated based on the Land Use Class change is greater than the respective revenue reflected in Table 2 or less than the respective revenue calculated in Table 2, but the reduction in Expected Revenues does not reduce debt service coverage below any minimum debt service coverage assumed in connection with the sale of CFD No. 22-1 Bonds, no further action is needed, and the CFD Administrator shall update Table 2 to show the revised Expected Revenues. If the Special Tax revenue from the levy of Special Taxes on Assessor’s Parcels in each respective Land Use Class calculated based on the Land Use Class change are less than the respective revenue reflected in Table 2, and the CFD Administrator determines that the reduction in Expected Revenues would reduce debt service coverage below any minimum debt service coverage assumed in connection with the sale of CFD No. 22-1 Bonds, the Special Tax that can be levied on the Assessor’s Parcel subject to a Land Use Class change will be subject to one of the following: (i) the landowner requesting the Land Use Class change may make a partial prepayment of Special Taxes for the Assessor’s Parcel or Assessor’s Parcels subject to the Land Use Class change in an amount that will ensure that the reduced Expected Revenues are sufficient to meet any minimum debt service coverage assumed in connection with the sale of CFD No. 22-1 Bonds or (ii) if a prepayment is not selected, the Assigned Special Tax on the Assessor’s City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-9 B-9 Parcel or Assessor’s Parcels subject to the Land Use Class change shall be increased proportionately until the Expected Revenues are sufficient to maintain any minimum debt service coverage assumed in connection with the sale of CFD No. 22-1 Bonds. c. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2023, the Assigned Special Tax and the Backup Special Tax for Developed Property and Final Map Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. d. Multiple Land Use Classes In some instances, an Assessor’s Parcel of Developed Property and Final Map Property may contain more than one Land Use Class. The Special Tax levied on an Assessor’s Parcel shall be the sum of the Special Tax for all Land Use Classes located on that Assessor’s Parcel. 2. Undeveloped Property a. Maximum Special Tax The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property shall be $166,589.23 per Acre in Fiscal Year 2022/23. b. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2023, the Maximum Special Tax for Undeveloped Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES Commencing with Fiscal Year 2022/23 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement, and shall levy the Special Tax until the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property and Taxable Welfare Exempt Property at a rate up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at a rate up to 100% of the Maximum Special Tax for Final Map Property to satisfy the Special Tax Requirement. Third: If additional monies are needed to satisfy the Special Tax Requirement after the second step has been completed, the Special Tax shall be levied Proportionately on each City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-10 B-10 Assessor’s Parcel of Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property to satisfy the Special Tax Requirement. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied on each Assessor’s Parcel of Taxable Property Owner Association Property at a rate up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property to satisfy the Special Tax Requirement. Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Special Tax for Taxable Public Property to satisfy the Special Tax Requirement. E. EXEMPTIONS 1. No Special Tax shall be levied on up to 4.4 Acres of Property Owner Association Property, and up to 0.25 Acres of Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property, or Public Property. 2. No Special Tax shall be levied on up to 25 BMR Units. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes BMR Units. 3. Any property that is granted a welfare exemption pursuant to Section 53340(c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code prior to the issuance of the first series of CFD No. 22-1 Bonds shall thereafter be exempt from the levy of the Special Tax. Any property that is granted a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code after the first series of CFD No. 22-1 Bonds have been issued shall not be considered Welfare Exempt Property and shall not be exempt from the levy of the Special Tax. 4. Property Owner Association Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Property Owner Association Property. Taxable Property Owner Association Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property. 5. Public Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the sixth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property. 6. Dwelling Units that are ADUs shall not be subject to the levy of the Special Tax.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-11 B-11 F. APPEALS Any property owner may file a written appeal of the Special Taxes with the CFD Administrator claiming that the amount or application of the Special Taxes is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes, including the disputed Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Taxes to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner. G. INTERPRETATIONS The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment of Special Taxes to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once CFD No. 22-1 Bonds have been issued such correction does not materially adversely affect the levy and collection of Special Taxes needed to repay the CFD No. 22-1 Bonds. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. H. MANNER OF COLLECTION The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may, directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner as necessary to meet the financial obligations of CFD No. 22-1, and may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor’s Parcels of Taxable Property that are delinquent in the payment of the Special Tax. I. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section I: “Future Facilities Costs” means, as of the date of prepayment, the costs, as estimated by the CFD Administrator of all Authorized Facilities financed or anticipated by the City to be financed by CFD No. 22-1, minus (i) the proceeds of any Previously Issued CFD City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-12 B-12 No. 22-1 Bonds which were, at the time of issuance, available to the City for Authorized Facilities. “Maximum Special Tax Percentage to be Prepaid” means the percentage of the Maximum Special Tax prepaid as determined by the CFD Administrator after application of the prepayment calculation set forth below. “Previously Issued CFD No. 22-1 Bonds” means all Outstanding CFD No. 22-1 Bonds that have been issued by CFD No. 22-1 prior to the date of prepayment. 1. Prepayment in Full The Special Tax obligation of an Assessor’s Parcel of Developed Property, Taxable Public Property, Taxable Welfare Exempt Property, Final Map Property, or Undeveloped Property, may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Special Tax with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor’s Parcel. Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Outstanding CFD No. 22-1 Bonds, if any, from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. If a prepayment is made prior to the issuance of CFD No. 22-1 Bonds, the Redemption Premium, Defeasance Amount, and Reserve Fund Credit as calculated below, shall be zero. The CFD Administrator may charge the property owner requesting a prepayment calculation a fee for providing this service. The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Special Tax Prepayment Amount As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows: Step Number: 1. Confirm that no Special Tax delinquency apply to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-13 B-13
2. For Assessor’s Parcels of Developed Property, Taxable Public Property and Taxable Welfare Exempt Property compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Map Property, and Undeveloped Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permits expected to be issued for that Assessor’s Parcel. 3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for CFD No. 22-1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of CFD No. 22-1. b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for CFD No. 22-1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of CFD No. 22-1. c. Determine which quotient computed pursuant to Step 3.a or 3.b is larger (the “Maximum Special Tax Percentage”). 4. Multiply the Maximum Special Tax Percentage by the Outstanding CFD No. 22-1 Bonds to compute the principal amount of Outstanding CFD No. 22-1 Bonds to be redeemed (the “Bond Redemption Amount”). 5. Compute the Future Facilities Costs. 6. Multiply the Maximum Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”). 7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium (e.g., the redemption price-100%, not including accrued interest), if any, on the Outstanding CFD No. 22-1 Bonds to be redeemed (the “Redemption Premium”) determined by reference to the Indenture. 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding CFD No. 22-1 Bonds (the “Defeasance Amount”). 9. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding CFD No. 22-1 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”). 10. If reserve funds for the Outstanding CFD No. 22-1 Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding CFD No. 22-1 Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-14 B-14 Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date. 11. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Step 10 (the “ Prepayment Amount”). 12. From the Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Future Facilities Costs. The amounts computed pursuant to Step 9, shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding CFD No. 22-1 Bonds or make Debt Service payments. The amount computed pursuant to Step 8 shall be retained by the City for the payment of Administrative Fees and Expenses. The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding CFD No. 22-1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Outstanding CFD No. 22-1 Bonds or to make Debt Service payments. Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor’s Parcel that is prepaid, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor’s Parcel satisfied. Notwithstanding the foregoing, no prepayment will be allowed unless the Maximum Special Tax that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the maximum annual Debt Service on all Outstanding CFD No. 22-1 Bonds plus annual Administrative Expenses, as reasonably estimated by the CFD Administrator. 2. Prepayment in Part The Special Tax may be partially prepaid, provided that a partial prepayment may be made after all authorized CFD No. 22-1 Bonds have been issued and only for Assessor’s Parcels of Developed Property, Taxable Public Property and Taxable Welfare Exempt Property and only if there are no delinquent Annual Special Taxes with respect to such Assessor’s Parcel at the time of partial prepayment. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula: PP = PE x F. These terms have the following meaning: PP = the partial prepayment PE = the Special Tax Prepayment Amount calculated according to Section I.1 F = the Maximum Special Tax Percentage To Be Prepaid City of Alameda March 20, 2022 CFD No. 22-1 (Alameda Marina) Page B-15 B-15 The Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds. The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax - Facilities for an Assessor’s Parcel within 45 days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the prepayment funds remitted according to Section I.1, and (ii) indicate in the records of CFD No. 22-1 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D. J. TERM The Special Tax shall be levied and collected as needed to fund the Special Tax Requirement for up to 40 years from the initial levy of the Special Tax. In any event no Special Tax shall be levied for CFD. No. 22-1 after the 2061/62 Fiscal Year.
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EXHIBIT C CITY OF ALAMEDA COMMUNITY FACILITIES DISTRICT NO. 22-1 (ALAMEDA MARINA) ASSESSOR’S PARCEL NUMBER AND OWNER OF LAND WITHIN THE DISTRICT Alameda County Assessor’s Parcel Numbers Owner of Record of Parcels 071-0291-010-00 Arroyo CAP II-5, LLC 18575 Jamboree Road, Suite 350 Irvine, California 94612