pages: AlamedaReuseandRedevelopmentAuthority/2009-01-07.pdf, 2
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AlamedaReuseandRedevelopmentAuthority | 2009-01-07 | 2 | 2) the amount of the Community Improvement Commission (CIC) investment in the Alameda Point project and whether or not that investment of redevelopment dollars adversely impacts the City's general fund which is responsible for financing critical city services. Ms. Potter discussed the Presidio conveyance model - a transfer from military ownership via special legislation to the National Park Service and was not subject to BRAC requirements - it was determined that the same conveyance model is not feasible for Alameda Point. Alameda Point is subject to BRAC, was previously screened for other federal agency uses, was screened pursuant to the McKinney-Vento act for homeless uses, and is required to be conveyed at fair market value for private ownership and reuse. The ARRA is working with the Navy to negotiate a conveyance term sheet to transfer the property and provide for its ultimate reuse as a mixed- use community that generates jobs, provides housing for all incomes, and opens up the waterfront and creates new recreational opportunities for Alameda and the region. To achieve that goal, the City entered into an Exclusive Negotiation Agreement with SunCal. Ms. Potter addressed the issue of tax increment funds, clarifying that there cannot be a pledge of tax increment funds without a DDA, approved by the City Council and CIC in public following a public hearing, therefore, any approval of tax increment funding will only happen after input and participation from the community. If tax increment funds are raised through the sale of tax increment bonds, those bonds are secured and repaid solely by tax increment funds generated in the Alameda Point Redevelopment Project Area (APIP), and in no way obligate the City's general fund. Based on current projections of the property value to be created by the build-out of the master plan, staff anticipates that a maximum of $184 million of tax increment will be created over the life of the project. This number is well short of the $700 million being referenced in the community. It should also be noted that large portion of the $184 million is restricted to the production of affordable housing. Furthermore, several years ago, the City Council adopted a resolution stating that all base reuse activities must pay for themselves and be fiscally neutral to the City's general Fund. The Council recognized the task of integrating former military property into the larger Alameda community would have a cost in terms of a need for the increase police and fire services, more demand on Parks and public libraries, and increased maintenance of new roads and infrastructure, and that cost should be borne by the new development. SunCal's draft Master Plan is supported by a Business Plan that provides for fiscal neutrality. Ms. Potter introduced Pat Keliher, SunCal's Alameda Point Project Manager, who presented the draft Master Plan via Powerpoint presentation. Following the presentation, there were several speakers who discussed various issues about the draft Master Plan. Member deHaan is concerned about some issues in the draft Master Plan, specifically regarding the plans for residential development, the sea level rising, and transportation issues. He also discussed the plans for the Sports Complex and that the plan has not changed, except for the price. He continues to have strong reservations. In response to public comment, Member Gilmore asked SunCal to explain its financial viability, the effect of the bankruptcies of other projects, predevelopment funding and where that money comes from, what happens during the predevelopment period if SunCal doesn't come up with the money, and how SunCal sees the financing unfolding once we get to a DDA. Mr. Keliher explained that throughout ENA period, SunCal is required to reimburse the City for any expenditures, and deposit money to spend on predevelopment dollars. This is done every quarter and is audited. Once we get through the ENA period, and the DDA period, and | AlamedaReuseandRedevelopmentAuthority/2009-01-07.pdf |