Brooklyn Basin Community Facilities District
(CFD)
Presenters:
Kimani Rogers
Urban Economic Analyst IV
Economic & Workforce Development
Chris Lynch
Jones Hall, A Professional Law Corporation
Dave Freudenberger
Goodwin Consulting Group, Inc.
Developer’s Brooklyn Basin
Project Rendering
Presentation Outline
1. Brooklyn Basin Project Overview
2. CFD requirement in Conditions of Approval and
Development Agreement
3. Overview of Mello-Roos Community Facilities Act
4. CFD No. 2017-1 – 2 Resolutions
• Resolution Correcting Inconsistencies
• Resolution Determining that Special Tax Shall Cease to be Levied
5. CFD No. 2023-1 Formation – 2 Resolutions
• Resolution of Intent to Establish CFD
• Resolution of Intent to Incur Bonded and Indebtedness • 64.2 acres of land area along Oakland Estuary
• Four development phases
• Up to 3,700 residential units, which includes the recent approval for 600 additional market-rate units
• Up to 200,000 sq. ft. of commercial space
• Minimum of 3,534 parking spaces
• 31 Acres of open space, renovated marinas, shoreline
improvements, new roads, etc.
1. Brooklyn Basin Project
Brooklyn Basin Phases I -IV
Background Information: Development Agreement
• Original Development Agreement between the City and the Developer approved in 2006
• In May 2023, the Council approved a Third Amendment to the Agreement increasing residential density by 600 units and adding community benefits
• That increased density creates special tax capacity for public services and
a portion of the public improvements
2. CFD Requirements: Conditions of Approval
Planning Commission Condition of Approval No. 38:
• “Prior to and at the time of approval of the first final map for the project, a Community Facilities District (CFD) … shall be fully operational, and all assessments, reserve funding and/or other long-term financing and other requirements necessary to fully fund, in perpetuity, the maintenance of the parks, open space and public right of way.
CFD Requirements: Development Agreement
CFD shall finance the costs and reserves for annual operations, maintenance, repair or replacement of the following public improvements:
• Improvements within the Brooklyn Basin Project’s Public Open Space • Landscaping located within any public right of way within the Brooklyn Basin Project, including, but not limited to, street trees and median landscaping • Streetlights located within any public right of way within the Brooklyn Basin Project • Street furniture located within any public right of way within the Brooklyn Basin Project
• Storm drainage treatment improvements within the Brooklyn Basin Project (including the Storm Water Improvements)
• Sidewalks located within the Brooklyn Basin Project public right of way and along the south side of Embarcadero
3. Mello-Roos Act Overview
• Response to Proposition 13 (1978)
• Mello-Roos Community Facilities Act of 1982
• Special taxes for public facilities and public services • Special taxes may pay debt service on bonds
• Qualified Electors: landowners, unless there are 12 or more registered voters
4. CFD No. 2017-1: Resolution Correcting Inconsistencies Purpose of CFD No. 2017-1: pay for operation/maintenance of public infrastructure serving the Brooklyn Basin project (Condition of Approval #38 and Development Agreement)
Proposed Corrective Action
• Proposed by taxable properties in CFD No. 2017-1
• Correct errors in description of geographic scope of services financed by CFD No. 2017- 1 (internally inconsistent and inconsistent with COA #38/Development Agreement) • No change in boundaries of CFD No. 2017-1
• No change in special taxes levied in CFD No. 2017-1
• No change in description of financed services (except deletion of erroneous “within the CFD”) • Approve Amended and Restated Boundary Map/Notice of Special Tax Lien CFD No. 2017-1: Resolution for Levy Special Tax Cessation Goal: Utilize CFD funding for public facilities without reducing CFD funding for operation/maintenance of Brooklyn Basin infrastructure • Leverages special tax capacity of 600 additional market-rate residential units Proposed Cessation of Special Taxes in CFD No. 2017-1
• Proposed by affected taxable properties in CFD No. 2017-1 • Not including Parcels B and C (which are complete and occupied, and will remain within CFD No. 2017-1) and Parcels A and F (which are 100% affordable and will remain within, but not be assessed by, CFD 2017-1) • Cease levying special taxes on other taxable properties so they can be added to CFD No. 2023-1
• Direct recordation of Notice of Cessation
5. CFD No. 2023-1: Formation
Proposed taxable properties:
All of the taxable properties in CFD No. 2017-1 except Parcels B and C (these are the parcels that will no longer pay special taxes in CFD No. 2017-1).
Parcels A and F will also remain in CFD No. 2017-1, but due to being 100% affordable they are not assessed by the CFD.
Services Funding:
Funding for same services as CFD No. 2017-1 plus small watercraft launch/water taxi dock
Facilities Funding:
Funding for new City public infrastructure serving Brooklyn Basin (projected $31 million of net bond proceeds)
CFD No. 2023-1: Formation Process
1. Petition
2. Resolution of Intention, Boundary Map, RMA
3. Public Hearing
4. Resolution of Formation and Resolution of Necessity
(Bonds/Debt)
5. Election
6. Special Tax Ordinance
7. Notice of Special Tax Lien
CFD No. 2023-1: Resolution of Intention to Establish
• Intent to establish CFD
• Preliminarily approve Boundary Map
• Proposed RMA
• Proposed Facilities and Services
• Call Public Hearing
CFD No. 2023-1: Resolution of Intention to Issue
Bonds/Debt
• Intent to issue bonds ($50 million aggregate) and
other debt
• Call Public Hearing
CFD No. 2023-1: RMA Tax Zones
CFD No. 2023-1: RMA Special Tax Rates and Revenue
Units Services Facilities Total Services Facilities
Original CFD 2017-1
Parcels B,C,D,E,G,H,J,K,L,M 2,635 $1,140 $0 $1,140 $3,005,560 $0 56,000 sf of Non-Residential $63,717
Total $3,069,277
Revised CFD 2017-1 + New CFD 2023-1
Revised CFD 2017-1 (Parcels B,C) 482 $1,140 $0 $1,140 $549,480 $0 New CFD 2023-1
Zone 1 (Parcels D,E,G,H,J) 1,565 $704 $436 $1,140 $1,101,760 $683,000 56,000 sf of Non-Residential $63,717
Zone 2 (Parcels K,L,M) 1,188 $1,140 $1,500 $2,640 $1,354,320 $1,782,000 Subtotal 2,753 $2,519,797 $2,465,000
Total 3,235 $3,069,277 $2,465,000
Annual Special Tax Rate Revenue
CFD No. 2023-1: RMA Other Key Provisions
• Special Tax is only levied on Developed Property
• Developed Property is based on issuance of Certificate of Occupancy • Services Tax increases annually at the greater of 4.8% or CPI • Tax Zone 1: Facilities Tax ceases and Services Tax increases upon Trigger Event
• Actual Services Tax rates levied in CFD No. 2023-1 will be set equal to actual rates levied in CFD No. 2017-1
• Services Tax may be increased if a land use change would reduce revenue
• Facilities Tax may be lowered prior to first bond sale if effective tax rate is too high
CFD Process Schedules
• CFD No. 2017-1
• CFD No. 2023-1
Date Event
July 18, 2023 (City Council) Corrective Resolution/Resolution of Cessation After CFD No. 2023-1 Formation Record Notice of Cessation; Amended and Restated Boundary Map/Notice of Special Tax Lien
Date Event
July 18, 2023 (City Council) Resolution of Intention/Public Hearing September 19, 2023 (City Council) Resolution of Formation/Public Hearing/Election October 3, 2023 (City Council) Adopt Special Tax Ordinance FY 2024-25 Initial Tax Levy
Recommendation
Image of the 9th Ave Terminal Shell, Township Commons Park, the Development Project, the Estuary and San Francisco in the background.
Staff recommends that the Committee approve all
four resolutions and forward them to the July 18
City Council meeting for a public hearing (non-
consent)
Questions and Public Comments
Image of the 9th Ave Terminal Shell, Township Commons Park, the Development Project, the Estuary and San Francisco in the background.
CFD No. 2017 – 1 Boundary Map
CFD No. 2023 – 1 Boundary Map