Council Discusses Point Tax District
The City of Alameda will adopt a resolution that will declare its intention to create a Community Facilities District (CFD) at Alameda Point. Private property owners who acquire public land from the city within the district will be levied a special tax.
The resolution was established at the March 7 City Council meeting. The formation of the district is authorized through the City of Alameda’s Special Tax Financing Improvement Code Alameda Municipal Code, Section 3-70, according to a memorandum from City Manager Jill Keimach.
The city created a boundary line that outlines the CFD, according to the city’s Resolution of Intention report. The CFD consists of two zones. Zone 1 is the 68-acre Site A property that is being developed by Alameda Point Partners (APP). Zone 2 is all property within the adaptive reuse area currently owned by the city and outside of California State Lands’ jurisdiction.
Additional properties are anticipated to be annexed to the CFD, according to the report. An analysis will be prepared to determine the annual cost for providing authorized services to the new parcels as each annexation is proposed.
In Zone 1, townhomes are taxed $3,600 per dwelling unit. Condominiums are taxed $1,010 per dwelling unit. Apartments are taxed $82,400 per acre, while all non-residential property is taxed 60 cents per square foot.
The tax for Zone 2 property owners differ from Zone 1. In Zone 2, townhomes are taxed $2,858 per dwelling unit. Condominiums are taxed $1,816 per dwelling unit. Apartments are taxed $1,652 per dwelling unit. Non-residential property will be taxed 70 cents per square foot. All taxes are the maximum amount that can be levied on owners.
Taxes will be levied annually within the district and collected in same manner as ordinary ad valorem property taxes. No special taxes will be levied on undeveloped property.
The tax is in conjunction with the city’s agreement with APP. The two sides agreed to a Disposition and Development Agreement (DDA) in June 2015 that requires APP to invest more than $103 million in public infrastructure and amenities and provide annual financing of public services and transportation services and programs consistent with the approved development plan, Fiscal Neutrality Policy for Alameda Point and Site A Transportation Demand Management (TDM) Compliance Strategy. All other properties are required to comply with the DDA.
The taxes will pay for public services such as police and fire protection, maintenance of bus shelters and bus stops, maintenance of public parks, maintenance of sanitary sewer systems within the CFD, maintenance of sidewalks in or near the CFD and other services. The tax will also finance TDM services such as: bus vehicles, transportation passes (“EasyPass” “BikeLink” “Clipper cards”) rideshare subsidies, bike facilities and more.
With the resolution passing, a public hearing will take place at the City Council meeting on March 21. At the meeting the city will designate the law firm of Quint & Thimmig as formation counsel to assist the City with the formation of the CFD.