APPROVED AS TO FORM AND LEGALITY
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
ORDINANCE NO. ________________C.M.S.
ORDINANCE PROVIDING FOR THE BORROWING OF FUNDS AND
THE ISSUANCE AND SALE OF SPECIAL TAX BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000 FOR AND ON BEHALF OF CITY OF OAKLAND COMMUNITY FACILITIES DISTRICT NO. 2023 -1
(BROOKLYN BASIN FACILITIES AND SERVICES) ; APPROVING
CERTAIN RELATED MATTERS ; AND ADOPTING APPROPRIATE
FINDINGS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
WHEREAS, the City of Oakland (the “City”) approved a development now known as Brooklyn Basin (and formerly known as the Oak -to-Ninth Avenue Mixed Use Development) on approximately 64.2 acres of land area (and 7.95 acres of water surface area) along the Oakland Estuary, which included up to 3,100 residential units, up to 200,000 square feet of commercial space, a minimum of 3,534 parking spaces, approximately 31 acres of open space, two renovated marinas, as well as shoreline improvements, new roads, and other infrastructure and improvement (the “Original Brooklyn Basin Project”); and
WHEREAS, the City, as an original party and as successor to the Redevelopment Agency of the City of Oakland, and Zarsion -OHP I, LLC, a California limited liability company (“Developer”), as successor by assignment from Oakland Harbor Partners, LLC, are parties to that certain Development Agreement, dated August 24, 2006, approved by Ordinance No. 12760 C.M.S. adopted on July 18, 2006, related to development of the Original Brooklyn Basin Project (as amended and assigned, the “Development Agreement”); and
WHEREAS, on May 16, 2023, the City Council adopted Ordinance No. 13789 C.M.S., which approved a Third Amendment to the Development Agreement, which together with the related additional entitlements approved by the City Council, permits the development of an additional six hundred (600) residential units within the Original Brooklyn Basin Project (the “Updated Brooklyn Basin Project”); and
WHEREAS, the Original Brooklyn Basin Project was analyzed under the certified 2009 Brooklyn Basin Environmental Impact Report (“2009 EIR”), which is comprised of the following documents: Oak to Ninth Avenue Project Draft EIR, August 2005; Oak to Ninth Avenue Proj ect, 2006 Addendum #1 to the Certified Environmental Impact Report, June 7, 2006; Oak to Ninth Avenue Project Final EIR, August 2006; Revisions to the Analysis in the Oak to Ninth Project EIR 2 (SCH. No. 2004062013) Prepared to Comply with the Alameda County Superior Court Order Case No. RG06-280345 and Case No. RG06 -280471, November 2008; Oak to Ninth Avenue Project Reponses to Comments on the Revisions, December 2008; and City of Oakland Resolu tion No. 81769 C.M.S., approved January 20, 2009; and
WHEREAS, in accordance with Public Resources Code Section 21166 and California Environmental Quality Act (“CEQA”) Guidelines Sections 15162 and 15163, the City examined whether the additional 600 units proposed in the Updated Brooklyn Basin Project would result i n “substantial changes” that would trigger the need for a major modification to the previously certified 2009 EIR due to a new significant impact or a substantial increase in the severity of previously identified significant impacts. An Initial Stu dy was not prepared for the Updated Brooklyn Basin Project, as authorized under Section 15060(d) of the CEQA Guidelines. The City, as the Lead Agency, determined that a Supplemental Environmental Impact Report ( “SEIR”) for the Updated Brooklyn Basin Project would be required; and
WHEREAS, as further set forth in the City’s Resolution No. 89707 C.M.S., adopted on May 2, 2023 certifying the SEIR, the Updated Brooklyn Basin Project did not identify any new or more severe potentially significant or significant and unavoidable impacts than ana lyzed in the previous 2009 EIR for the Original Brooklyn Basin Project; and
WHEREAS, in accordance with CEQA Guidelines sections 15162 and 15163, the City hereby finds that, based on substantial evidence in the record, this action does not represent a substantive change to the Updated Brooklyn Basin Project and thus none of the circumsta nces necessitating preparation of a subsequent or supplemental Environmental Impact Report are present. In addition, each as a separate and independent basis, this action is otherwise exempt from CEQA review under CEQA Guidelines section 15183 (projects consistent with a community plan, general plan or zoning), 15301 (existing facilities), and 15308 (actions by regulatory agencies for the protection of the environment); and
WHEREAS, the City Council previously conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the “Act”), to form “City of Oakland Community Facilities District No. 2023 -1 (Brooklyn Basin Facilities and Services)” (the “CFD”) for the purpose of authorizing the levy of special taxes upon the land within the CFD and issuing bonds secured by certain o f those special taxes for financing certain public improvements related to the Updated Brooklyn Basin Project (the “Facilities”) in the aggregate principal amount of $50,000,000, all as described in those proceedings; and
WHEREAS, in connection with the formation of the CFD, the City and the Developer have entered into that certain Acquisition Agreement Relating to: City of Oakland Community Facilities District No. 2023 -1 (Brooklyn Basin Facilities and Services), dated as of Febru ary 1, 2024, pursuant to which the City may use proceeds of bonds issued by the City for the CFD and special taxes to pay the purchase price for the Facilities constructed by the Developer; and
3 WHEREAS, the City Council wishes to borrow money for and on behalf of the CFD by issuing special tax bonds to pay the purchase price for the Facilities constructed by the Developer; and
WHEREAS, pursuant to Section 219 of the Charter of the City, an ordinance is required to authorize the borrowing of money; now, therefore
THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS
FOLLOWS:
Section 1. Recitals. All of the above recitals are true and correct, and the City Council so finds and determines.
Section 2. Authorization of Bonds; Execution of the Bonds . This City Council hereby authorizes the issuance and sale of one or more series of special tax bonds for and on behalf of the CFD (the “Bonds”), which may be taxable or tax exempt and have one or more maturities.
The Bonds shall be issued in an aggregate principal amount not to exceed $6,000,000, which amount shall be finally determined by the City Administrator, the Director of Finance or such other officer as the City Administrator shall designate in writing.
The Bonds shall be executed by the City Administrator or such other officer as the City Administrator shall designate in writing.
Section 3. Security for the Bonds . The Bonds shall be payable from special taxes levied in the CFD.
Section 4. Sale of Bonds; Ancillary Agreements; Disclosure Document. The terms and provisions of the Bonds, the sale of the Bonds, and the forms of agreements relating to the Bonds, including but not limited to forms of a fiscal agent agreement, a bond purchase agreement and a continuing disclosure certificate, and the form of an official statement for the Bonds , shall be approved by resolution of the City Council.
Section 5. CEQA. The City Council independently finds and determines that the CFD is subject to the 2009 EIR for the Original Brooklyn Basin Project and the SEIR for the Updated Brooklyn Basin Project and, because the issuance of the Bonds by the City for and on behalf of the CFD is not a substantive change to the Updated Brooklyn Basin Project, that no further environmental review is required; none of the circumstances that require a supplemental or subsequent EIR pursuant to CEQA Guidelines Sections 15162 or 15163 have occurred; in addition, with each serving as a separate and independent basis, this action approving the issuance of the Bonds is otherwise exempt from CEQA review under CEQA Guidelines section 15183 (projects consistent with a community plan, general plan or zoning), 15301 ( existing facilities), and 15308 (actions by regulatory agencies for the protection of the environment). The Environmental Review Officer is directed to file, or cause to be filed, a Notice of Determination/Exemption with the appropriate agencies.
4 Section 6. Effective Date. This Ordinance shall be effective immediately upon final adoption if it receives six or more affirmative votes; otherwise, it shall become effective on the seventh day after final adoption.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES – FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of
the City of Oakland, California
Date of Attestation:
3356803v1/ARM
5 NOTICE AND DIGEST
ORDINANCE PROVIDING FOR THE BORROWING OF FUNDS AND
THE ISSUANCE AND SALE OF SPECIAL TAX BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000 FOR AND ON BEHALF OF CITY OF OAKLAND COMMUNITY FACILITIES DISTRICT NO. 2023 -1
(BROOKLYN BASIN FACILITIES AND SERVICES) ; APPROVING
CERTAIN RELATED MATTERS ; AND ADOPTING APPROPRIATE
FINDINGS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
The Ordinance would authorize the City to borrow for and on behalf of City of Oakland Community Facilities District No. 2023-1 (Brooklyn Basin Facilities and Services) (“CFD”) up to Six Million Dollars ($6,000,000) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. The authorized bonds would be payable from special taxes levied in the CFD. The Ordinance further provides that no further environmental review is required under the California Environmental Quality Act as a result of the issuance of the bonds.