RESOLUTION NO. 2026-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS
IN AND FOR THE CITY OF UNION CITY COMMUNITY FACILITIES
DISTRICT NO. 2026-1 (STATION EAST FACILITIES AND SERVICES) IN AN AMOUNT NOT TO EXCEED $38,000,000 TO FINANCE THE
ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES WHEREAS, on the date hereof, the City Council (the “City Council”) of the City of Union City (the “City”) has duly adopted “RESOLUTION OF INTENTION OF THE CITY
COUNCIL OF THE CITY OF UNION CITY TO FORM CITY OF UNION CITY COMMUNITY FACILITIES DISTRICT NO. 2026-1 (STATION EAST FACILITIES AND
SERVICES), DESIGNATE AN INITIAL IMPROVEMENT AREA THEREIN AND
ESTABLISH A FUTURE ANNEXATION AREA, AND TO LEVY SPECIAL TAXES
THEREIN TO FINANCE CERTAIN PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES” (the “Resolution of Intention”), wherein it declared its intention to establish a community facilities district under and pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), to be known and designated as the “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (the “CFD”), designate therein “Improvement Area No. 1 of the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (“Improvement Area No. 1”), form a future annexation area for the CFD (the “Future Annexation Area”), to levy a services special tax within the CFD, and to levy a facilities special tax within the CFD to finance the acquisition and construction of certain public facilities (collectively, the “Facilities”) listed in Exhibit B to the Resolution of Intention and incorporated therein and made a part hereof; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities, the expenditures related to the Facilities with the proceeds of bonded indebtedness and other debt issued by the City for the CFD; and WHEREAS, in order to finance the costs of the Facilities, it is necessary to incur bonded indebtedness in and for the CFD in an amount not to exceed $38,000,000; and WHEREAS, the City Council is fully advised in this matter.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:
Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness
1. The above recitals are true and correct, and the City Council so finds and determines.
2. The City Council hereby declares that the public convenience and necessity require that a bonded indebtedness in the principal amount of not to exceed $38,000,000 be incurred in one or more series to finance the acquisition and construction of the Facilities, which amount includes all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which such bonded indebtedness is proposed to be incurred in and for the CFD (the “Authorization”), initially allocated as follows: (i) for land within Improvement Area No. 1, $20,000,000 and (ii) for the portion of the CFD that is not in Improvement Area No. 1, $18,000,000 (the “Future Improvement Area Indebtedness Limit”). Indebtedness subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act.
Upon designation of a parcel or parcels annexed into the CFD from the Future Annexation Area as a future improvement area of the CFD (each, a “Future Improvement Area”), the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels to be annexed shall include an authorization to incur bonded indebtedness for such Future Improvement Area in a maximum amount which does not exceed the Future Improvement Area Indebtedness Limit, net of the amount of the Future Improvement Area Indebtedness Limit previously used to establish an indebtedness limit for any other Future Improvement Area in connection with a prior annexation from the Future Annexation Area. Such allocation may be made without any requirement for further public hearings, City Council action, or other proceedings, and the City shall include each Unanimous Consent in the CFD records.
3. This City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds and other debt in and for Improvement Area No. 1 in one or more series in the maximum aggregate principal amount not to exceed the Improvement Area No. 1 bonded indebtedness limit described above, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds and other debt, and maturing not to exceed 40 years from the date of the issuance of each series of the bonds and other debt.
This City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds and other debt in and for each Future Improvement Area in one or more series in the maximum aggregate principal amount not to exceed the Future Improvement Area Indebtedness Limit in the aggregate, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of each series of bonds and other debt, and maturing not to exceed 40 years from the date of the issuance of the respective series of bonds and other debt.
Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness
4. Notice is given that Tuesday, July 14, 2026, at the hour of 7:00 P.M., at the regular meeting place of the City Council, City Council Chambers, Union City City Hall, 34009 Alvarado-Niles Road, Union City, California 94587, has been fixed by the City Council as the time and place for a public hearing to be held by the City Council to consider the incurring of such bonded indebtedness to finance the acquisition and construction of the Facilities in and for the CFD. At the hearing, testimony concerning the incurring of such bonded indebtedness, secured by the facilities special tax to be levied within the CFD to finance the acquisition and construction of the Facilities, will be heard, and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the land which would be subject to special taxation within the proposed CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing.
5. The City Clerk is hereby directed to cause notice of the public hearing to be given in the form required by the Act, which requires publication in a newspaper of general circulation circulated within the CFD, and such publication shall be made pursuant to Section 6061 of the Government Code of the State of California. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53346 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved.
6. The City hereby declares its intention to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities certain expenditures for the Facilities from the proceeds of the bonded indebtedness and other debt described in this Resolution, including costs of the Facilities paid by the City and/or other local agencies prior to the date of issuance of such bonded indebtedness and other debt not in excess of the amount described herein.
7. This Resolution shall in no way obligate the City Council to form the CFD or to issue bonds or other debt for the CFD. Issuance of the bonds and other debt shall be subject to the approval of this City Council by resolution following the holding of the public hearing referred to above.
8. This Resolution shall take effect immediately upon its adoption.
Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness
Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:
THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney