2003-10-07 Joint CC CIC HABOC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL,
COMMUNITY IMPROVEMENT COMMISSION, AND
HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING
TUESDAY- - OCTOBER 7, 2003- -6:40 P.M.
Mayor /Chair Johnson convened the Special Joint Meeting at 7:05 p.m.
Councilmember /Commissioner Gilmore led the Pledge of Allegiance.
Roll Call - Present: Councilmembers /Commissioners Daysog,
Gilmore, Kerr, Matarrese, Commissioner
Torrey, and Mayor /Chair Johnson - 6.
Absent: None.
(03- 438CC/03- 048CIC) Study Session to discuss Bayport Municipal
Services District.
Kevin Jordan, Sierra Club Member, commented on the lack of low -
income housing east of Bay Street.
Councilmember /Commissioner Kerr noted a previous City Council voted
not to put anymore subsidized housing west of Sherman Street to
address said problem; stated the policy should be remembered.
Commissioner Torrey stated one recommendation of the Housing Forum
Board was to have affordable housing spread throughout the City,
rather than on the west side.
Vice Mayor /Commissioner Daysog stated low- income neighborhoods are
not comprised of all criminals; children from said neighborhoods
can go on to good colleges even if they graduate from Encinal High
School; socio- economical diversity should be supported.
Debbie Kern, Keyser Marston Associates, gave a PowerPoint
presentation on the fiscal impact analysis of the Municipal
Services District.
Councilmember /Commissioner Kerr inquired whether Catellus plans to
continue warehouse leasing.
The City Manager /Executive Director responded that as long as there
is a market for warehouse facilities while the commercial /retail
development is postponed, leases would continue if income is
generated.
Councilmember Kerr stated the financing plan assumes income from
the warehouses would be used to fund municipal services for the
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housing project.
The City Manager /Executive Director stated revenues from the
warehouses would be used to fund project costs associated with the
Catellus development; eventually, the warehouses will be demolished
and there will be new construction, which will generate tax
increment revenue and other taxes.
Ms. Kern stated the project would still be in balance even if
warehouse revenues were removed from the analysis.
Councilmember /Commissioner Kerr stated the project is marginally in
balance [without lease revenues]; that she is concerned about
relying on warehouse leases revenue for the district.
The City Manager /Executive Director provided background on
segmenting the Catellus project into two separate projects:
residential and commercial.
Councilmember /Commissioner Kerr noted there are costs associated
with operating the warehouse, such as paying for fire damage.
Vice Mayor /Commissioner Daysog stated $800,000 to $1 million in
lease revenues are generated; inquired whether the revenue is used
to cover costs at Alameda Point currently; further inquired whether
funds would be re- programmed to pay for the housing project.
Ms. Kern responded that there is not double counting; Alameda Point
Community Partners (APCP) project expenses for police and fire are
currently funded from the revenue source; all costs are funded
between the Catellus and APCP projects.
Vice Mayor /Commissioner Daysog requested language be added to
ensure that: a) the Fleet Industrial Supply Center (FISC) lease
revenues are dedicated to cover any [funding] gap, and b) in the
event that Catellus terminates the [warehouse] use, the [funding]
gap will be filled; stated FISC [lease] revenues make the project
whole; noted the analysis did not account for cost and revenue
increases over time.
Ms. Kern stated the revenue picture would change once the
[redevelopment] project area is terminated.
Vice Mayor /Commissioner Daysog noted that the project area would
not terminate for forty years.
Ms. Kern stated a balance of commercial and residential development
is needed in order for a project to meet the principles of smart
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growth communities; excess revenues generated in the commercial
component help provide services in the residential component; noted
Catellus envisions building a commercial component.
Vice Mayor /Commissioner Daysog stated housing accrues more expenses
than revenues due to Proposition 13.
The City Manager /Executive Director stated staff would memorialize
said issues in any documents related to the project.
In response to Vice Mayor /Commissioner Daysog's inquiry regarding
when the matter would return, the City Manager /Executive Director
responded a public hearing would be held on October 21, 2003.
Councilmember /Commissioner Matarrese requested information on the
future of the municipal services district be provided when the
matter returns; for example, if there is an opportunity to reduce
or remove the district, after there is successful commercial
development; stated timing should be addressed.
The City Manager /Executive Director stated staff would create a
couple of alternative scenarios based on different assumptions.
(03- 439CC/03- 049CIC) Study Session to discuss the Refinancing of
Parrot Village, Eagle Village and China Clipper Plaza with Funds
from the Community Improvement Commission Merged Improvement Area
Bond Issuance.
The Housing Authority Executive Director gave a brief presentation
on refinancing options.
Councilmember /Commissioner Kerr requested a list of all existing
and proposed future commitments of tax increment funds; stated said
information should be provided prior to the matter returning to
Council for a vote.
The City Manager /Executive Director stated staff would provide a
list of the tentative commitments for the tax allocation bond;
stated Council should have a compressive overview of the projects
currently identified for expenditure by the refunding.
Councilmember /Commissioner Kerr noted tax increment is not a
bottomless source.
Councilmember /Commissioner Matarrese inquired whether the
information that would be provided would include existing
commitments, not just the projects to be funded by the bonds.
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The City Manager /Executive Director responded in the affirmative.
Mayor /Chair Johnson requested the report include options on how the
Housing Authority issue can be handled other than using tax
increment bond money.
The City Manager /Executive Director responded the options are: 1)
use a portion of the tax allocation bond, 2) issue new bonds, or 3)
do nothing; noted the cost savings would be $178,000.
The Housing Authority Executive Director noted that two banks
provided proposals; going through a bank for a ten -year loan
involves higher costs.
Vice Mayor /Commissioner Daysog stated loaning $6 million of the
Community Improvement Commission (CIC) bond money allows for repair
and extraordinary maintenance of Housing Authority properties;
inquired whether the costs would be $200,000 more if the Housing
Authority uses its own funding source.
The Housing Authority Executive Director responded in the
affirmative; stated there would be additional costs for appraisals
and seismic studies.
Councilmember /Commissioner Matarrese inquired whether refinancing
saves $178,000 per year and allows $800,000 worth of maintenance;
and whether doing nothing does not provide any funds for
maintenance and does not realize a cost savings.
The Housing Authority Executive Director responded in the
affirmative; further stated if the Housing Authority issues its own
bonds or refinances through a bank, there are long -term reporting
requirements, escrow fees, fees to trustees, and other regulatory
requirements, which would not be required if the money is loaned
from the CIC.
Mayor /Chair Johnson stated the report should address whether there
would there be an impact on future planned projects or projects
that the City expects to plan, since the loan would come from tax
increment.
The City Manager /Executive Director responded said information
would be included in the report.
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ADJOURNMENT
There being no further business, Mayor /Chair Johnson adjourned the
Special Joint Meeting at 7:50 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, Community Improvement
Commission
The agenda for this meeting was posted in accordance with the Brown
Act.
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