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HomeMy WebLinkAbout6.1 Multi Fam Res ProjectG � OE Dp�� 19 �-�-� ,82 STAFF REPORT CITY CLERK DUBLIN CITY COUNCIL File # El TA a.FQ DATE: December 21, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJEC . Inclusion of Multi -Family Residential Projects in the City of Dublin's Participation in Statewide Community Infrastructure Program (SCIP) Prepared By: Linda Maurer, Economic Development Director EXECUTIVE SUMMARY: The City Council will consider rescinding, replacing and restating the City's participation in the Statewide Community Infrastructure Program (SCIP) to include financing of certain City impact fees for multi -family residential development. FINANCIAL IMPACT: None at this time. RECOMMENDATION: Staff recommends that the City Council adopt the proposed Resolution of the City Council of the City of Dublin Rescinding, Replacing and Restating Resolution No. 185-05 thus Continuing the Authority for the City to Participate in the Statewide Community Infrastructure Program; Authorizing the California Statewide Communities Development Authority to Accept Applications from Property Owners, to Conduct Special Assessment Proceedings and to Levy Assessments within the Territory of the City of Dublin; and Authorizing Related Actions. Submitted By Repbiew d By Economic Development Director Assistan y Manager Page 1 of 3 ITEM NO: CP ° DESCRIPTION: Background ~ On September 20, 2005, the City of Dublin adopted Resolution No. 185-05 (Attachment 1) authorizing the City of Dublin to join the Statewide Community Infrastructure Program ("SCIP"). SCIP was instituted in 2002 by the California Statewide Communities Development Authority ("CSCDA"), a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. The SCIP program allows owners of property in participating cities and counties to'finance the development impact fees that would be payable by property owners upon receiving development entitlements or building permits. The program currently allows the City of Dublin to provide a no-cost economic development incentive to attract. non-residential projects (commercial and industrial development) and provides developers with low-cost, long-term tax- exempt financing of those fees. Since the program's inception, two (2) Dublin projects have participated in the SCIP program. The projects include the Venture Professional Center (corner of Dublin Blvd. and Clark Ave.) and the General Motors dealerships on John Monego Court. The SCIP program allows for the payment of certain City development impact fees: Public Facilities (Community Parks, Community Parks Improvements, and Neighborhood Parks Improvements), Freeway Interchange, Traffic Impact, and Tri-Valley Transportation Development fees. The program does not allow for the payment of the following City fees: Public Facilities (Libraries, Civic Center, and Aquatic Center), Fire Impact Fees, or the Affordable Housing Inclusionary In-Lieu Fee. Following the City's lead, the Dublin San Ramon Services District (DSRSD) joined the SCIP program in 2006 and permits certain DSRSD fees to be financed over time. The SCIP program will not allow bond proceeds to pay Zone 7 development fees as that agency has not elected to participate in the SCIP program. Addition of Multi-Family Residential to the SCIP Program When the program was adopted by the City of Dublin in 2005, the Staff did not recommend the SCIP program for residential development projects. At that time, there was a concern about individual homeowners being required to pay the development impact fees through the assessments on their property. ~ . Since the time of the program's adoption, the housing market has softened and it has become increasingly difficult for residential developments to access the necessary construction funding. Staff has been approached by residential developers, particularly those involved in the development of multi-family residential projects, to consider the expansion of . the City's participation in the`SCIP Program to also include residential projects. Staff evaluated the pros and cons of adding residential development projects, including the initial concerns raised in 2005, and brought an item back to the City Council for consideration on August 17, 2010 (Attachment 2). Staff's recommendation was to include only multi-family residential projects, as opposed to single-family residential projects, because. of issues relating ~ to the timing and implementation of single family construction, as well as concerns about perceived inequities in property assessments. Over the past few months, Staff has been working with the legal counsel for the SCIP Program to modify the City;s participation and has been working collaboratively with DSRSD to expand Page 2 of 3 their definition to include multi-family residential projects as well. DSRSD took action, on their proposed change in November 2010 to expand their participation to include multi-family development projects. If a developer of a multi-family residential project chooses to participate in the SCIP financing program, the purchaser of the residential unit will be informed of the special assessment on the property at the time of purchase. To illustrate, the City fees eligible for SCIP financing on a condominium unit are approximately $18,000. Including assessment fees, such as legal and underwriting costs, the assessment on the property would be approximately $20,300. The debt is structured over 30 years and the one year of debt service is financed and held in reserve. The property owner would pay over a 29-year period an annual assessment of approximately $1,390, which would be collected with the property tax bill. The property owner may pre-pay assessments however there are sometimes additional premiums that must also be paid. All of the administration of the tax liens and repayment of the bonds is handled by the California Statewide Communities Development Authority and not the City. The proposed resolution (Attachment 3) rescinds, replaces and restates Resolution No. 185-05 to include SCIP financing for multi-family residential projects or a combination of non-owner occupied multi-family residential and non-residential structures. Staff believes that the extension of SCIP financing to multi-family residential development will ease the financing burden for residential development and could help stimulate future residential development. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A Public Hearing Notice was placed in the Tri-Valley Herald on December 16, 2010 ATTACHMENTS: 1. Resolution 185-05 2. August 17, 2010 City Council Staff Report 3: Resolution of the City Council of the City of Dublin Rescinding, Replacing and Restating Resolution No. 185-05 thus Continuing the Authority for the City to Participate in the Statewide Community Infrastructure Program; Authorizing the California Statewide Communities Development Authority to Accept Applications from Property Owners, to Conduct Special Assessment Proceedings and to Levy Assessments within the Territory of the City of Dubl,in; and Authorizing Related Actions. Page 3 of 3 i~ ~ ~ [iESOLTJ'a'[UN NO.185 - (IS A It~S~LUTION ~F THE Cl'I'~ COUNCIL o~ m~ crrY a~ uusLUv ~.*~*~~,~~~~*~~~~*~*~~~i*~~ AUTHC1RTZlNG THE CITY ~F DUBLIN TO JOIN THE STATEW~riE CON~MUN7'I'Y iNFRASTRUCTURE FR~GRAM AND AUT~iORiZING TAE CALIFDRNIA- STATEWIDE ~OMMUNTTIES DEVELOPMENT AU'I'FICIRITY TU ACCEPT APPI.ICATIQNS FR4M , FRQPERTY DWNERS FOR ~YON-RESIDEN'I`IAL DEVELQPMENTS, CONDUCT SP~CIAL ASSESSM~~T"i' PRQ~EEDIlY~S AND LEVY A55~SSMENTS WITHYN '~'l3E TERR~'I'QRY UF TH~ CITY OF DUBLIN AND AUTHURIZING R~LATED ACTIUNS WHEREt#~S; the CalifQrnia Statewide Gotnmunities Y?evelopment Authority (the "Authority"} is a joint exercise nf powers authority the members_of whiclt incl~ude numeraus cities and counties in #he State af C~lifornia, including the City of Ilublin (th~ "Cityn); and WHEREAS, the AuthQrity has established the StaLewide Comimunity Infrastructure Program ("SC~P"} to allow the ~inancing vfcertain developmetyt impa+Gt fees {the "Fees") levied i~- accordance with` the Mitigation Fee Act (Ca~i~ornia Gpvernment Code Sections 6~i004 and foliowing) and other sirthority providir~g for the levy of fees un new development to gay for public capital im~rovem~nts (collectively, the "Fee Act") through the levy of special assessments pursuant to the Municipal Impravement Act of 1913 (5treets ~d Highways Code Sections 100U0 and following) (the "1913 Act") and the yssuance of improvem~nt bonds (the "Loca1 Obii~ati~ns") ualt~er the lmprovement Bond Act of 1~15 (Streets and Highways ~ode Sections $SQ~ and f~llawing) (the "19l 5 Act") upon the security of the unp~id special agsessments; and WHEREAS, the City desires to allc~w the owners of pro~eriy being developed within its jurisc~iction for non-residential purposes (e.g. com~nerci~l and i~ndustrial uses) to participate in SCIP ar~d t~ allow the Authority to canduct assessment proceedings under the 1913 Act and issua Local Obligations under the 1915 Act to finance ,Feea ]evied on such properties, provided that such prc~perty owners voluttt~rily a~'ee to participat~ and consenC to the levy of such assessments; and WHEREA-S, in each year in which etigible property owners within the j~risdiction of the City elect to participate in SCIP, the Authority will conduct assessment proceedings un3er the 1913 Act and issue La~a! Obligations under the 1915 Act to finance Fees payahle by suc~ property owners and, at the conclusion of such prac,eedings, will levy sp~ci~I assessments on such property within the territory of the City; W HEIi~EAS, there has beer presented to this meeting a proposed forn~ af Resolution of Intention to be adopted by the Autharity in connection with suoh assessment proceedings, ~~opy of which is attached heretQ as F.ahi~it A{tk~e °`RQl") and the territdry within which assessments may be levied for . SCIP (pravided that the owner o~' any property subject to assessment consents to such assessmcnt) sh~ll be coterminous with the City's offic~al boundaries of'record at ths tune of adoption of each s~,icti RQI. (the "1'ropased B~undaries"), and reference is hereby made to such bous~daries for the plat or ~ma~ r~quired to. be included in ~his Resalutios~ pursuant ta Section 10104 of the Stre~s and Hig,hways Code; and W1~EREAS, the City will not lie responsible for the eonduct of any Assessment proceedings; th~~ l~vy or ~llection of assessments or ~ny reyuired remedia.l ~ction in the c~se of delinquencies in such assessment payments; or the issuance, sa~e or administration ot the Local Obligations or any other bond~ ___ issued in connection with SCIP; and - . 1~~~~0~~ ~~ ~ ' ATTACHMENT 1 ~~ ~ \ VirHEREAS, pursuarrt to Gavemment Code Section 65.86.5, nc~tice was published at least five days prior to the adoption af this resolution ~t a public hearing, which was dul}~ ccmducted by this City ~Cauncii c~ncerning the signi~cant ~ub~ic ben~efits of SCLP and the financing af the publi~ capital improvernents to be paid for wi#h the groceeds of the Fees, N+(~W, 7'HEREFO~, BE TT RE$U~,VED by the City Council of the City of Du61in as follaws: ction l: T7~e City hereby consents to th~ conduct of special assess~nent praceedings by the Authority in connection with SC]P pursua.nt to the 1913 Act and t~e issuance af Local Obligations under the 1915 Act on any property within the Proposed Baundaries design~ted for non-residential development; provided, that (1) Such proceedin,gs are conducted pursu~t to one or more Resolutions of Inte~tion in substantially the form ofthe RQI; and (2) The legsl owner(s) of such property execute a writte~ consent to the levy of assessment in. connection with SCTP by the Authority and esecute an assessment ba~lot in far~or of such ass~ssment in ~ompli~nce with the requirements af Section 4 of Articie X11rp ofthe State Ganstitution. ectian 2. The City hereby finds and declares that th~ issuance of bonds by the Authority in ~onnection with SCiP will prov~de significam pubiie benefits, including without limitation, savir~gs in effective interesx rate, bnnd preparation, ~ond t~n~erwritittg and bond issuance costs and the more efficicnt delivery oi'local agency se~'vices to commercial and industrial de~elopment within the City_ S~ction 3. The Authorit~ has prepared and will update from ti~ne to time. the "SGiP Manual of Procedures" {the "Manua~"), and tEte City will h~ndle Fee revenues fflr properties participating in SCIP in accordance with #he procedures set f~rth ia the Manual provided, hawever, th~t not?ung in the IVlanu~l or oiher pracedures impletnented by the Authority shall (a) prevent or prahibit the City £ron3 impasyng azidlor collecting frorn the propert~ owner/develuper all development irnpact fees estatylisk-ed by the City at the tizt~e a buiiding perr~lit is issued by the City or (b) shall rec~uire the City t~ aceept less than the total amount of develaptnen~t impact fe~s imposed by the City at the ta~rne a building pe~mit is issued by the City. Section 4. 'I'he appropriate officials a-nd staff' of the City are herehy authorized and directed t~ make SCIF applicati~ns available to ~11 non-residen#i~l progerty owners who gre~subject to Fees f~r new development within tne City and to infarm such avvners r~f theu aption to participate in SCI~; provided, that the Authnrity ahall be responsible #or providiug such applit~tions and relateci rn~teri$ls at its own expense. The sta~ persons listed an the attacbed E~hibit B,_ and any other staff persons cho5en by the City 1V7.anag~r from time ta time, are hereby designated as the canta~t per~ons for the Authority in connection with the SC1F program, Se ron 5. Th~ appropriate o~cials and staf~ of th~ City are ~ereby authorized and directed ta execute ar-d deliver such clasing certificates, requisitipns, agreements and related documents, including but not limited to such dacurnents as may required 6y Bond Counsel in eonneci~on with the participatio~ in SCIP of any di~t~'icts, autharities or other third-party entitaes entitled to levy and collect fees on new development to p~y for public capital improvemettts within the jurisdiction of the City, as are reasona~ly required l~y the Authority in acc~rdance with the. Iv~anual to implement SCIF for non-residentis.l property owners who elect to participate in SCIP and to evidenc~ compliance with the requirements af federal and state law in connection wi#~ the issuance by the Authority af tlie Loc~-1 Ubli~ation and any other bonds #'ar 2 ~ ~~~~' SCTP_ To that end, and pursuant to Treasury Regulatio~s Section l_ 150-2, the staff persans listed on Exhibit ~, or other staf~ person actin~ in the same capacity for the City with respe~t t~ SCll', are hereby authorized and designated t~ deciaze the off'icial i~tent of the City with respect to the public capital improvements to be paid or reimbursed through participation in SCIl'. Section b. This Resolution shall take effect immediately upon its adoption_ The Clerk of th~ City Council is hereby authorized and directed to traz~smit a certi~ed copy of this resolution to the Secretary af the Authority. ~ PASS~D, AFPRQVED AND ADOPTEU on this 20`" day of September, 2005, hy the following vote: - AY~S: Councilmembers Hildenbrand, McCormick, Oravetz and Zika, and Mayor Lackhart NOES: None A.BSENT: Nane AB$TAIYY: None ~ Mayor Janet Lockhart ATTEST: Fawn Holm~n, City Clerk c;:~c.c.-hrres~zoos~u:~LS~-wg-ZO-0s~e~o ~ks-os scir.DOG (ltcm G.4) ~~~ ~ EXH~6I'T` A Fo~en~r o~' ~sar, v~~o~v o~ r~vrEx~IVx TQ BE ADDPIED BY CSCDA R~SOLUTfUN O-F IIVTE.IVTION OF THE CALik'QRI~TYA STATE'WID~ COMMLTN~TIES DEVELO~'I~IENT AUTHORI'I'Y 'Y'O FiNANCE THE PAYMEN'~' QF DEVELQPMENT IlVI~'ACT ~'EES FUR PUBL~C IM.PROVEMENTS IN'TI3E PRQPOSED ASS~SSMENT DISTRJC`I' NO. (CITY OF UUBL~, CALIFORIYIA,), APPRQV~NG A PROPQSED BOUNDARY MAP, MAKING CERTAIN DEC1~A~.7'TUNS, F[KDIN'GS AND ~3ETERIVIIN.ATIONS CpNCERNYNG ~ELATED MAT'~ERS, AND A,iJTliORIZING RELATE:~ A,CT7(aN51N CONNECTION THEI2EWITii WHEREAS, txnder the autharity of the Municipal Improvement Act of 1913 (tlie "1913 Act"), beitig Division 12 (commencing with Sections 10000 and foll~win~) o~ the California Streets and Highways Code, the Commissian (the "Commission"} of the California Statewide Communities Development Autharity (the "Authorit}~') intends to finance, through its Statewide Community ln&astructure Frograrn, the payment of certain development inrapact fees fo~ public improvements as described in Exhibit A attached hea'eto and by this referen~e incorparated herein (the "Improvement Fees"}, ~11 of w~ich are o~ benefit to the propos~d AssesSment District ~To. {City o'F Dublin, California) ~the "Assessment District"}, amd WI-~REAS, the Commission finds that the land specially benefited by the lmprovement ~'ees is shown withir~ the boundaxies of the ma~ entitled "Praposed Boundaries of Assessment District ~To. ~(City af IDubliri, California)," a Gopy of which map is on file wit}~ the Secretary and presented ta this Commission meeting, a~d deterrnines that the land within the exteriar boundaries shown ~n the rnap shal9 be designated "A.ssessment Uistrict No. _(City af Dublin, California)"; NOW, THEREFpRE, ~~ FT R~SOLVED that the Commission of the California Statewide Communities bevel~pment Autharity hereby finds, determines a~nd resoives as ~'ollows: The abo~e recitals are true and correct, and the Commission so finds and detern~ines. Z_ Pursuant to Section 2961 of the Specia.l Assessment Investigatio~ Limitation and Maj~rity Protest Act of 1931 tthe "193 ~ Aet"), being Division 4(cortaznencing with Section 2800) af the California Streets anci Highways Code, the Commissior~ hereby declares its intent to cornply with the rec~uirements of the I931 Act by complying with Fart 7.5 thereof. 3. The Commission has ar will designate a registered, ~ro~'essional engineer as Engineer of Wark far this proj~cf, and hereby directs s$id ~irm to prep~re the repvrt containing the matters required by Sections 2961(b) and 10204 of the Streets and Highways Code, as snpplemented by Section 4 of .4rticle ~IID ofthe Califomia Cor~stitution. 4. The praposed bau~dary map of t~e Assessment District is hereby approved and adopted. Puxsuant to Section 3111 of the Califoraia Streets and Highways Code, the Secretary of the Aut~tority is directed to fiie a copy of the ma.p in t~e offtce of the City Recorder of the City of ~ublin within ~ifteen (15) days o~'the adoption ofthis rESalution. ~~~~ 5, The Commission determines that the cdst of the Imiprovement Fees shall be specially assessed ag~inst the lots, pieces or parc.els of land within the Assessment District bene~iting from the payme~t ofthe Tmprovement k'ees_ The Comtnisaian intenda to levy a special assessment upon such lots, pieces oX parcels in acco~rdance with the special bene~t to $e received ~y each such lot, pier.e or parael af lz~nd, respectively, from the payment of t~e, ~nnprovement Fees. , 6. The Cornmission intends, pursuattt ta subparagr~ph (~ of Sectian 10204 o~'the Califarnia Streets and Highways Code, to provide for an annual~ assessment upon each of the parcels of land in the propoaed assessment distr-ict to. pay various casts and expenses incurred £rom time to time by the Autharity and not otherwise reimbursed to the Authtarity which result fram t~e administratian ~and collection af ~ssessment iz~stallments or from the adm~~nistration or registration of the irnprovernent bonds ~nd the various funds an~d accounts ~ertaining thereto. 7. Bonds representing unpaid assessments, ~tnd bearii~g interest at a rate not to exceed twelve percent {1~%) per annum, will be issued in the manner provided by the Impravement Bond Act of 1915 (bivisia~ l4, Streets and Highwa.ys Code), and t,he last installment of the botads shall mature not to exceed thirty (3Q) years'from the secand day af September next succeediz~g twelve (12) mant~s frc~m their. date. $. The procedure for the collection of assessme~tts and adva~tce re~irem~nt of bonds u~der the Irnprovement Bond Act of 1915 shall be as provided in Fart 11.1, Division 14, of the Streets and Highways Code of the State of Gatifornia. ~ 9. Neither the Aut~ority nor any member a~ency thereof will obligate itself to ~dvance available fit~tds from its or their awn fui~ds or otherwise to cure any de~icienc~ which may o~ur in the bond redernption fund. A determination not to obligat~ itseYf shall not prevent the Authority or any such member agency fro~ in its sale discret~an, sd advancing funds. ~ ].Q. 1he amo~nt of any surplus remaining in the improvement fund after completion of the improvefnents and paymer~t of all clairnis shall be distributed in accordance with the prvvisions of Section 10427.1 of the Streets and Hi~hways Cade, 1 i, To the exterrt any Improvement ~'ees ~re paid to the Authority in cash with res}~ect to property within the proposed Assessr~r~ent District prior to the date af issuance of the 6oncis, the amounts so paid shal~ be reimbursed from the praceeds af t~e bonds to the property owner dr developer that mad~ the gayment. ~ ~~~-~~ ~~~ B CiTY OF b17BLIN CONTACTS F~R SC~P PROGRAM Primary Contact Nan~e: Ricltard G Ambrose, City Manager Tifle~ City MAnager Mailing AddrCSS: ~ 140 Gvic Plaza, Duhlir4 CA ~45b8 DeI1Yet'y AddrCSS (if dlfferent); E-mail: ~~~Ynalla ~er~iisci. dublin, ra.zis T~lephonc: 925-83 3-Gfi50 ~'~ryx: 925~833-6Ci51 Secondary Contact Name: Christophet I.,. F~sS Tifle; ECOnamic Devel~pme~t Dirtctar M~iling Address: 1t1E1 Civic Pl~a, Dubl.iq CA 94568 Delivery Address {~ different): E-xn~il: Chris.Foss(i~,ci.dubiin.eh.as Telephone: 925-g~3-6650 . F~x: 9?5-$33~a6~ ] G~~.~ OF Dp~~~ ~ ~ ~ I ~ i9~ ~1-~-~. ~~ . ```~~~~/ STAFF REPORT C ~ T Y C L E R K c~~~,~ s DUBLIN CITY COUNCIL File #^ 30~~-0~ DATE: August 17, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager . SUBJEC : Consideration of amending City of Dublin's participation in the Statewide Community Infrastructure Program (SCIP) to include Multi-Family Residential Development Prepared By: Linda Maurer, Economic Development Director EXECUTIVE SUMMARY: The City Council is being asked to provide Staff direction relative to the potential amendment of the City's participation in the Statewide Community Infrastructure Program (SCIP) to include multi-family residential development. FINANCIAL IMPACT: None at this time RECOMMENDATION: Staff recommends that the City Council provide Staff with direction on the potential amendment of the City's participation in the Statewide Community Infrastructure Program (SCfP) to include multi-family residential development. - ~~ `aci C~ _ Submitted Byl Economic Development Director Revie re By Assistant City Manager Page 1 of 3 ITEM ~ ATTACHMENT 2 ~~~~ ~ DESCRIPTION: The California Statewide Communities Development Authority ("CSCDA") is a joint powers authority sponsored by the League of Cafifornia Cities and the California State Association of Counties. At this time, over 500 cities, counties and special districts are members of the CSCDA, including this City. There are 30 SCIP Cities and Counties, including the City of Livermore. The Statewide Community Infrastructure Program ("SCIP") was instituted by CSCDA in 2002 to allow owners of property in participating cities and counties to finance the development impact fees that would be payable by property owners upon receiving development entitlements or building permits. If a property owner chooses to participate, the development impact fees owed to the City will be financed by the issuance of tax-exempt bonds by CSCDA. CSCDA will- -. impose a special assessment on the owner's property (bonds typically have a 30-year term) to repay the portion of the bonds issued to finance the fees paid with respect to the property. The debt service payment is transferred from the developer to the subsequent property owner {once the property is developed). The property owner will either pay the impact fees at the time of permit issuance, and will be reimbursed from the SCIP bond proceeds when the SClP bond is issued, or the fees will be prepaid to the City from the proceeds of the SCIP bonds. In this way, the City is never at risk for the receipt of the impact fees. On September 20, 2005, the City of Dublin adopted Resolution No. 185-05 authorizing the City of Dublin to join SCIP (see Attachment 1). The program allows the City of Dublin to provide a no-cost economic development incentive to attract commercial and industrial businesses and provides developers with low-cost, long-term tax-exempt financing of those fees. The SCIP program allows for the payment of certain City development impact fees: Pubfic Facilities .(Community Parks, Community Parks Improvements, Community Buildings, and Neighborhood Parks Improvements), Freeway Interchange, Traffic Impact, Tri-Valley Transportation, and Noise Mitigation. The program does not allow for the payment of the following City fees: Public Facilities (Libraries, Civic Center, and Aquatic Center), Fire Impact Fees, or the (nclusionary In Lieu Fee. The Dublin San Ramon Services District (DSRSD) joined the SCIP program in 2006 and permits certain DSRSD fees to be financed over time. The SCIP program will not allow bond proceeds to pay for School District or Zone 7 development fees. ~ At this time, two (2) Dublin projects (Venture Professional Center and the Hummer/Saturn/Saab dealerships) have participated in SCIP financing. When the program was adopted in 2005, Staff recommended that the program be made available to commerciaJ/industrial developments but did not recommend the program for any residential developments as Staff was concerned about the potential for individual homeowners being required to pay the.development impact fees through the assessments on their property. Since the time of the program's adoption, the housing market has softened and it has become more difficult for residential developments (including multi-family) to access the necessary funding. Staff believes that the availability of SCIIP financing for multi-family residential developments would be beneficial to interested developers. Staff_feels that there are benefits to both the City and the property owner to~extend the program to multi-family residential developments. The benefits include (but are not limited to): Page 2 of 3 CfTY Benefits ~ The City is not liable for the repayment of the bonds issued by CSCDA or the assessments imposed on the participating properties. • Little City staff time is required to administer the program, as CSCDA handles all functions related to the bond issuance, etc. • This type of tax-exempt financing helps cushion the impact of rising development impact fees on property owners. • The availability of financing could encourage developers to pull permits which would provide the City with immedia#e access to development impact fee revenues. PROPERTY OWNER Benefits ~ • Only property owners who choose to participate in the program will have assessments imposed on their property. • Instead of paying cash for development impact fees, the property owner receives low- cost, long-term tax-exempt financing for these fees, thus freeing up much-needed capital for other purposes. ~ • The property owner can choose to pay off the special assessments at any time. • For home buyers, paying the costs of the public infrastructure through a special assessment is superior to having those costs "rolled into" the cost of the home. While it might increase the property tax bill, the amount of the home buyer's mortgage would be smaller, making it easier to qualify. . • Owners of smaller residential projects can have access to tax-exempt financing of infrastructure. ~ ~ The potential SCIP financing could however, ptace a future tax assessment on future multi- family residential home buyers. While future home buyers will be apprised of the SCIP assessments at the time of the purchase, they could have subsequent questions about the assessment lien on their property. Those questions would be answered by the Alameda County Assessor, rather than the City, as it is an assessment on the property. In addition, the homeowners of the first residential project developed under SCIP financing would be paying an assessment unlike any other development in Dublin. Staff believes that the extension of SCIP financing to multi-family residential development will ease the financing burden for residential development and could help stimulate. future mult- family residentia! development. The Economic Development Ad-Hoc Committee discussed this issue at its June 28, 2010 meeting and recommended the amendment for consideration by the entire City Council. NOTlCING REQUIREMENTS/PUBLtC OUTREACH: Not applicable. ATTACHMENTS: 1. September 2005 Staff Report (w/out attachments} _ Page 3 of 3 l~ n~2 I CITY CLERK Fife. # ^~~~'~~ AGENDA ~7'A~'~NlENY ~ ~ CITY GOllIdCIL MEETING ~ATE: September 20, 2Q05 v~ i__ S[IBJECT: Pi1BLIC HEA.RiIYG: Authorizataon for City of Dublin to join the Statcwide Community I~zfrastructure Program (SC1p} RePort Prepared by: Christopher t. Fnss Economic Develv~ment Direc.tor ATTACHIVIENTS: 1. SCTP Program Inforrnation 2. Proposed 12esotutio.n REC~NTMEN~DA'rION: 1. Qpen Public Hearing ~J~~(~/ Z. Receive StaffPreseniation and Public Testunany ~.Y " 3• Question Staff and Public 4. Close Public Hearing and Deliberate 5. Adopt the proposed resolutian authorizing the City of Dublin to join the Statewide Community infrastructure Program. FINANCIAL STATEMENT: Narie. ~ bESCRIPTION: The California Statewide Communities ]]~velppment Authority ("CS,CDA") is a joint powers authorit~ spo.nsored by the League of C~lifomia Cities and the Califarnia Slaie Asso~iation of Cou~ties. The mernbcr agencies of CSCDA ~nclude approximately 230 cities aztd 54 counties throughout Galifornia, including the City of J~ublin. The Statewide Comrnunity Infrastructura pro~ram ("SCIP") was instituted by CSCAA in 2002 tfl allow owners af property in particip~ting citres and counties to finance the development impact fees that would be payable b~ property owners upon receiving develc~prnent entitlernents or building permits (see Attachment 1). lf a properiy owner chopses to participate, the development irnpact fees owed to the City of Dublin will be financed by the issuance of tax-exempt bonds (current interest rate: 5.25°/a) by CSCDA. GSCDA will impose a speczal assessment on the owner's property ta repay the portion of the bonds issued to finance the fees paid Wrth respcct to the property. The property owner will either pay the iznp~ct fees at thc time of pennit issuance, and will be reirnbursed from the SC7P bond prpceeds when. the S~iP bonds are issued, or the qua.lifyin~ impact fees will be paicl, at the time af the building pernaat is~uance, directly to the City of Dubiin from the proceeds af the SCIP bonds, If the imp~~t fees increasc from the ti~ne of the bond issu~ce to buildirig pcrmit issuance, the developer will be responsible for paying the difference between the bond procecds and the final impact fees at the time of building perrnit issu~nce. L~PIE~ T~: 1U~tn !'!. KnnX / Urrl4lc, H~rriq~loh cff Sttf~~:'x r r n 400 Sansome Street - Sau Francisco, C.4 5~411 Hlcc-forms/xgdastmt.doc Thc benefits to the City of DubIin include: IIn~'~i •~'he pro~rari~ provides an cconornic development incentive to altract commcrcial aud inclustrial businesses to the City that inay not atherwise be able to locatc to Dublin. • As in eanventional assessment fina,ncing, the City of Dublyn is not liablc to repay the bonds issueci by CSCDA or the assessinents impased an the participating properties. • CSCDA handles al] diskrict farmation, district administration, bond issuance and bond adrninistration functions. A participating City can provide financing to propetty oramers through SCIP while comrnitting viriually no staff time to administer 1he prograrn. The benefits ta the develo~er in.cl~de: + Only devclapcrs who chaose to particip~te in the program wi11 have assessments iinposed on their property. • Instead of payin~ cash for develapment_impact fees, the properiy owner receivcs low-cost, long~terni . tax-exempt financing af those fees, freeing up capital for othcr purposes. ~ The property owner can choosc to pay off the special assessments at any time. ~ Owners of smaller projects ea~i have access to tax-exempt ~inancing of infrastrueture. Before lhe inception of SCIP, only projecis large enough to justify the fonnation of an assessrnent or comnnut~ities faeitities distriet had aeeess to tax-exempt financin~;. Staff recently met with SCIP program oFficials and it has 6cen determined that the following City development fees can be paid by the SCIP pro~ram: . Public Facil~ties Fees Community Parks Community Parks, Tmprovcments Community Buildings Land, Neighborhaod Parks Imgrovements, Neighbarhood Parks Freeway Interch~nge Fee Traf~ic Impact Fees -(E~stern Dublin Traftc Impact Fee-and Downtown Tr~fflc Impact Fee) Tri-Valley Transportation Fee Nnise Miti~s~tfon Fee The SCLP program will not allow boz~d proceeds to pay for the following City fees: Public Faeilities Fees Libraries Civic Canter Aquati~ Centcr Fire Impact ~ees ~nclusibnary In Lieu ~'ees The SCIP progam wi 11_ also not a.~low bond proceeds to pay far SChool District development fees. Thc SCIP program wili also a11aw bond proceeds to pay for certa,in DSRSD aztd Zane 7. fees. SCIp St,aff has mef with DSRSD and is currently working an making this pragram available for #heir fees, 2 o~~-~I Th~ proposec~ res~lution (see Attact~ment 2) authorizes.the CSCDA ta accept applieations from avF~s of praperty withyn the City's pl~nning jurisdiction to apply far tax-exempt rnancing of der•elvpment impact fees tl~.rough SCLP. tt also autl,ori~es CSCDA to form an assessinent district cavering thc City of Dublin, eonduct assessment proceedings and le~y assessmenis againsi thc property of participatin~ owners. It also authorizes zniscellaneous related actions and makes ecrtain findings r~nd determinations required by law. Attached #o the Rcsolution, as Exlubit A, is a"Fonn of CSGDA Resolution of Intenti~n." This is for infarmatianal purposes and d+aes nat requi.re acNo~ by the City Council. Qver the past t~vo years, the SCIP program issued bands for development in a number of citics, includin~ Brentwaod, Elk Grove, Lincoaz~, Mil)brae, Napa; Richrnond and Rosevilie. ,At the prescnt time, SCIP Staff will be€;ir+ aceepting applieations in October 2045 for a Nvvember/Decernber 2405 bond issues. Staff has had conversatio~s ~ith local developers as to their interest in this type of pragram, and the response has becn positivc with the developer of the Gateway Mcdical Center (Tri.ad Development} prepared to submit an app~i.calion to SCIP tor consideration, should the Ci.iy Council approve this acrion. At t~is poin#, Staff would,recomniend that this pragrarn be made available t4 commerciallindustrial developments within the City of ~7ublin_ Staff feels that this program is a valuable economic dcvelopment tvol that would help ease the up-front cost burden of comunerci.al and industrial develapment in DubHn. Staff is not recommending tliis pra~-am for residential developments. 7f it we~e av~ilable for re~idcntial develogments, the individual homeowners would end up paying tl~e fees tl~rough the assessments,_ which wauld include thc costs of issuance and interest. There is no way to assure that the sales prices of th~ homes would be reduced by these costs. • RECOMMENATiQN: 5taff recommends that the City Council canduct the public hearing, deliberale, and aclogt the proposed resolution entitlcd "A Resolution of the ~ity Gouncil of the City of Dublin authorizing the City to join thc Statcwide Community Tnfrastructure Arogram and authorizing the California Statewidc Communities Develvpment A~~thority to accept applieations from properiy owncrs for non-residentia,l developmcnts, conduct special assessment proceedings and levy assessments within the t~rritory of thc City of Dublin and authorizing telated actions." G:\ChrisVSCIF' Pro~m - Fee FinancinglFQRM-agrnda sratemcnt SC1P PrubTam Augusl 2005,doc R/3 ! /2005 3:17 PM8!-3 iJ3(~At -W;13-AM 3 ~ 1~~~ ~I RESOLUTION NO. RESOLUTION OF THE C1TY COUNCIL OF THE CITY OF DUBLIN RESCINDING, REPLACING AND RESTATING RESOLUTION NO. 185-05 THUS CONTINUING THE AUTHORITY FOR THE CITY TO PARTICIPATE IN THE STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, TO CONDUCT SPECIAL ASSESSMENT PROCEEDINGS AND TO LEVY ASSESSMENTS WITHIN THE TERRITORY OF THE CITY OF DUBLIN; AND AUTHORIZING RELATED ACTIONS WHEREAS, the California Statewide Communities Development Authority (the "Authority") is a joint exercise of powers authority the members of which include numerous cities and counties in the State of California, including the City of Dublin (the "City"); and WHEREAS, the Authority has established the Statewide Community Infrastructure Program ("SCIP") to allow the financing of certain development impact fees (the "Fees") levied in accordance with the Mitigation Fee Act (California Government Gode Sections 66000 and following) and, other authority providing for the levy of fees on new development to pay for public capital improvements. (collectively, the "Fee Act") through the levy of special assessments pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the "1913 Act") and the issuance of improvement bonds (the "Local Obligations") under the Improvement Bond Act of 1915 (Streefs and Highways Code Sections 8500 and following) (the "1915 Act") upon the security of the unpaid special assessments; and WHEREAS, the City Council (the "Council") of the City duly adopted its Resolution No. 185-05 on September 20, 2005 wherein the Council authorized the City to join the SCIP and authorized the Authority to accept applications from property owners for non-residential developments, conduct special assessment proceedings and levy assessments within the territory of the City and authorized related actions; and WHEREAS, the City Council wishes by this resolution to restate the authority conferred by Resolution No. 185-05 to include SCIP financing for Multi-Famify Projects (as defined below) in addition to non-residential projects; and WHEREAS, the City desires to allow the owners of property being developed as Non-Residential Projects (as defined below) and . Multi-Family Projects, within its jurisdiction, ("Participating Developers") to participate in SCIP and to allow the Author.ity to conduct assessment proceedings under the 1913 Act and to issue Local Obligations under the 1915 Act to finance Fees levied on such properties, provided that such Participating Developers voluntarily agree to participate and consent to the levy of such assessments; and ATTACHMENT 3 OHS West261014181.5 i~~~2~ ~ WHEREAS, in each year in which eligible property owners within the jurisdiction of the City elect to be Participating Developers, in cases where the projects meet appropriate underwriting criteria, the Authority will conduct assessment proceedings under the 1913 Act and issue Local Obligations under the 1915 Act to finance Fees payable by such property owners and, at the conclusion of such proceedings, will levy special assessments on such property within the territory of the City; and WHEREAS, there has been presented to this meeting a proposed form of Resolution of Intention to be adopted by the Authority in connection with such assessment proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within which assessments may be levied for SCIP (provided that each Participating Developer consents to such assessment) shall be coterminous with the City's official boundaries of record at the time of adoption of each such ROI (the "Proposed Boundaries"), and reference is hereby made to such boundaries for the plat or map required to be included in this Resolution pursuant to Section 10104 of the Streets and Highways Code; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Local Obligations or any other bonds issued in connection with SCIP; and WHEREAS, pursuant to Government Code Section 6586.5, notice of a public hearing on this matter was published at least five days prior to the hearing, and adoption of this resolution followed the public hearing, which was duly conducted by this Council concerning the significant public benefits of SCIP and the financing of the public capital improvements to be paid for with the proceeds of the Fees; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin as follows: Section 1. By this resolution the City hereby rescinds, replaces and restates Resolution No. 185-05. Section 2. The City hereby consents to the conduct of special assessment proceedings by the Authority in connection with SCIP pursuant to the 1913 Act and the issuance of Local Obiigations under the 1915 Act on any property within the Proposed Boundaries designated for Multi Family Projects and Non-Residential Projects (the "Program"); provided, that (1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in substantially the form of the ROI; and (2) The legal owner(s) of such property execute a written consent to the levy of assessment by the Authority in connection with SCIP and that the legal owner(s) OHS West261014181.5 2 ~~~~2I execute an assessment ballot in favor of such assessment in compliance with the requirements of Section 4 of Article XIIID of the State Constitution. (3) For the purposes of the Program,""Multi-Family Projects" shall mean buildings or parts thereof designed and used exclusively as a dwelling unit among other dwelling units either on the same parcel (e.g. apartments and mobile home parks) or under separate ownership (e.g. condominiums, townhomes, duplexes or duets). (4) For the purposes of the Program, "Non-Residential Projects" shall mean projects constructed on land zoned by the City of Dublin for commercial, industrial, or office use. (5) Mixed Use Developments that include °a mix of Multi-Family and Non- Residential uses shall be deemed to be a Non-Residential Project for the purpose of participation in the Program. Section 3. The City hereby finds and declares that the issuance of bonds by the Authority in connection with SCIP will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs and the more efficient delivery of local agency services to development within the City. Section 4. The Authority has prepared and will update from time to time the "SCIP Manual of Procedures" (the "Manual"), and the City will handle F~e revenues for properties participating in SCIP in accordance with the procedures set forth in the Manual. . Section 5. The appropriate officials and staff of the City are hereby authorized and directed to make SCIP applications available to all Multi-Family Project and Non- Residential Project property owners whose projects are subject to Fees for new development within the City and to inform such owners of their option to participate in SCIP; provided, that the Authority shall be responsible for providing such applications and related materials at its own expense. The staff persons listed on the attached , Exhibit B, and any other staff persons chosen by the City Manager from time to time, are hereby designated as the contact persons for the Authority in connection with the SCIP program. Section 6. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents, including but not limited to such documents as may be required by Bond Counsel in connection with the participation in SCIP of any districts, authorities or other third-party entities entitled to levy and collect fees on new development to pay for public capital improvements within the jurisdiction of the City, as are reasonably required by the Authority in accordance with the Manual to implement SCIP for Multi- Family Projects and Non-Resitlential Projects whose owners elect to participate in SCIP and to evidence compliance with the requirements of federal and state law in OHS West:261014181.5 3 1l~~~-~~ connection with the issuance by the Authority of the Local Obligation and any other bonds for SCIP. To that end, and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed on Exhibit B, or other staff person acting in the same capacity for the City with respect to SCIP, are hereby authorized and designated to declare the official intent of the City with respect to any public capital improvements to be paid or reimbursed through Fees financed through participation in SCIP. Section 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Authority. * * * PASSED, APPROVED AND ADOPTED this 7th day of December, 2010 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk OHS West:261014181.5 4 ~~~~~~i EXHIBIT A FORM OF RESOLUTION OF INTENTION TO BE ADOPTED BY CSCDA RESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED ASSESSMENT DISTRICT NO. (COUNTY OF , CALIFORNIA), APPROVING A PROPOSED BOUNDARY MAP, MAKING CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED ACTIONS IN CONNECTION THEREWITH WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the "1913 Act"), being Division 12 (commencing with Sections 10000 and following) of the California Streets and Highways Code, the Commission (the "Commission") of the California Statewide Communities Development Authority (the "Authority") intends to finance, through its Statewide Community Infrastructure Program, the payment of certain development impact fees for public capital improvements as described in Exhibit A attached hereto and by this reference incorporated herein (the "Fees"), all of which are of benefit to the property within the proposed Assessment District No. (County of . , .California) (the "Assessment District"); and WHEREAS, the Commission finds that the land .specially benefited by the Fees is shown within the boundaries of the map entitled "Proposed Boundaries of Assessment District No. (County of , California)," a copy of which map is on file with the Secretary and presented to this Commission meeting, and determines that the land within the exterior boundaries shown on the map shall be designated "Assessment District No. (County of , California)"; NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide Communities Development Authority hereby finds, determines and resolves as follows: 1. The above recitals are true and correct, and the Commission so finds and determines. 2. Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the "1931 Act"), being Division 4 (commencing with Section 2800) of the California Streets and Highways Code, the Commission hereby declares its intent to comply with the requirements of the 1931 Act by complying with Part 7.5 thereof. 3. The Commission has or will designate a registered, professional engineer as Engineer of Work for this project, and hereby directs said firm to prepare the report containing the matters required by Sections 2961(b) and 10204 of the Streets and OHS West:261014181.5 A-1 I$~~~~ Highways Code, as supplemented by Section 4 of Article XIIID of the California Constitution. ~ 4. The proposed boundary map of the Assessment District is hereby approved and adopted. Pursuant to Section 3111 of the California Streets and Highways Code, the Secretary of the Authority is directed to fiie a copy of the map in the office of the County Recorder of the County of within fifteen (15) days of the adoption of this resolution. ~ 5. The,Commission determines that the cost of the Fees shall be specially assessed against the lots, pieces or parcels of land within the Assessment District benefiting from the payment of the Fees. The Commission intends to _levy a special assessment upon such lots, pieces or parcels in accordance with the special benefit to be received by each such lot, piece or parcei of land, respectively, from the payment of the Fees. 6. The Commission intends, pursuant to subparagraph (fl of Section 10204 of the California Streets and Highways Code, to provide for an annual assessment upon each of the parcels of land in the proposed assessment district to pay various costs and expenses incurred from time to time by the Authority and not otherwise reimbursed to the Authority which result from the administration and collection of assessment installments or from the administration or registration of the improvement bonds and. the various funds and accounts pertaining thereto. 7. Bonds representing unpaid assessments, and bearing interest at a rate not to exceed twelve percent (12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last installment of the bonds shall mature not to exceed thirty (30) years from the second day of September next succeeding twelve (12) months from their date. ~ 8. The procedure for the collection of assessments and advance retirement of bonds under th`e Improvement Bond Act of 1915 shall be as provided in Part 11.1, Division 10, of the Streets and Highways Code of the State of California. 9. Neither the Authority nor any member agency thereof will obligate itself to advance available funds from its or their own funds or otherwise to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the Authority or any such member agency from, in its sole discretion, so advancing funds. _ 10. The amount of any surplus remaining in the improvement fund after payment of the Fees and payment of all claims shall be distributed in accordance with the provisions of Section 10427.1 of the Streets and Highways Code. ~ 11. To the extent any Fees are paid to the Authority in cash with respect to property within the proposed Assessment District prior to the date of issuance of the bonds, the amounts so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer that made the payment. OHS West261014181.5 A-2 1~a~°~ I [End of Form of Resolution of Intention] OHS West:261014181.5 A-3 ~~~~~ ~ ~ EXHIBIT B CITY OF DUBLIN CONTACTS FOR SCIP PROGRAM Primary Contact Name: Paul Rankin ~ Title: Administrative Services Director Mailing Address: 100 Civic Plaza, Dublin, CA 94568 Delivery Address (if different): E-mall: paul.rankin(~dublin.ca.qov Telephone: (925) 833-6650 Fax: (925) 833-6651 Secondary Contact Name: Chris Foss Title: Assistant City Manager Mailing Address: 100 Civic Plaza, Dublin, CA 94568 Delivery Address (if different): E-mail: chris.foss(c~dublin.ca.gov Telephone: (925) 833-6650 Fax: (925) 833-6651 OHS West261014181.5 `~~~~~I CERTIFICATION OF RESOLUTION I, the undersigned, the duly appointed and qualified City Clerk of the City of Dublin, do hereby certify that the foregoing Resolution No. was duly adopted at a regular meeting of the City Council of the City of Dublin duly and regularly held at the regular meeting place thereof on the day of , 2010, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present. ~ ~ An agenda of said meeting was posted at least 72 hours before said meeting at , a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda. .' I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect. Dated: , 2010 [ 1 City Clerk City of Dublin By: [Seal] OHS West:261014181.5