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File Number: 22-271 Staff recommends that the Council adopt: 1.Resolution of Intention to Establish the City of San Leandro Community Facilities District No. 2022-1 (Monarch Bay Shoreline Facilities & Services), and to Levy a Special Tax in the Community Facilities District to Finance the Acquisition and Construction of Public Facilities and the Provision of Public Services 2.Resolution of Intention to Incur Bonded Indebtedness to Finance the Acquisition and Construction of Public Facilities in and for the City of San Leandro Community Facilities District No. 2022-1 (Monarch Bay Shoreline Facilities & Services) BACKGROUND: After more than a decade of community outreach and planning, on June 21, 2022, the City Council approved planning entitlements for the Monarch Bay Shoreline development, a public-private partnership between the City of San Leandro (City) and Cal Coast Companies LLC, Inc. (Developer) designed to fulfill the community ’s vision for a self -sustaining, high-quality, mixed-use development complemented by recreational amenities along the bay. The San Leandro Monarch Bay Shoreline Area is bounded by Marina Blvd to the north, the San Francisco Bay to the west, and Fairway Drive to the south. Additionally, on June 21, 2022, the City Council approved a Development Agreement for the project and a Second Amendment to the Disposition and Development Agreement and Purchase and Sale Agreement related to the sale and development of the land currently owned by the City in the project area. To meet the City’s policy goal of fiscal neutrality for the Shoreline project, the agreements between the City and the Developer for the project contemplated the formation of a community facilities district (CFD) under the Mello-Roos Communities Facilities Act of 1982 (Mello-Roos Act). Special taxes levied within the CFD will provide a funding source for public infrastructure and public services needed for the project, payable solely by property owners or lessees of City-owned property located within the boundary of the CFD / new development, and not other residents of the City. To ensure the CFD special taxes do not materially adversely impact the project, City staff has been diligently coordinating with the Developer on the terms of the proposed CFD. Analysis The proposed CFD special taxes will be used to fund ongoing services and can also provide bond funds for infrastructure, including future sea level rise adaptation efforts. All property located in the CFD boundaries will be subject to the special tax that will be levied and collected with the County of Alameda secured property -tax bills. Based on the proposed Shoreline development timeline, it is estimated that the special tax will be levied beginning in FY 2023-2024 for Developed Property located in the boundaries of the proposed CFD. A property is classified as Developed Property once a building permit is pulled. The exact timing of a future CFD bond sale secured by special taxes revenues will be determined based upon the build -out of the project and the need for bond -financed facilities and will be subject to City Council approval. The administration of the CFD will initially be contracted out to Page 2 City of San Leandro Printed on 7/13/2022