BILL ANALYSIS �
AB 2292
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 2292 (Bonta) - As Amended: April 23, 2014
SUBJECT : Infrastructure financing districts: City of Oakland:
freight rail.
SUMMARY : Allows an infrastructure financing district (IFD)
within the Oakland Army Base, the Howard Terminal, or the
Coliseum City in the City of Oakland to finance public capital
facilities or projects that include freight rail. Specifically,
this bill :
1)Allows any IFD within the Oakland Army Base, the Howard
Terminal, or the Coliseum City in the City of Oakland to
finance public capital facilities or projects that include
freight rail, in addition to the projects authorized in
existing IFD law.
2)Requires the governing board of the City of Oakland to
establish a commission to advise the city on the safety
concerns regarding any development authorized by 1), above, on
the Howard Terminal, and requires the commission to consist of
one member from each of the stakeholders involved in the
development of the Howard Terminal.
3)Finds and declares that a special law is necessary and that a
general law cannot be made applicable because of the unique
circumstances applicable to the City of Oakland and the need
for revitalization on the Oakland Army Base, the Howard
Terminal, and in the Coliseum City.
4)Provides that reimbursement to local agencies and school
districts for costs shall be made, if the Commission on State
Mandates determines that this act contains costs mandated by
the state.
EXISTING LAW :
1)Authorizes cities and counties to create IFDs and issue bonds
to pay for community scale public works: highways, transit,
water systems, sewer projects, flood control, child care
facilities, libraries, parks, and solid waste facilities.
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2)Allows an IFD to divert property tax increment revenues from
other local governments, excluding school districts, for up to
30 years, in order to pay back bonds issued by the IFD.
3)Requires that in order to form an IFD a city or county must
develop an infrastructure plan, send copies to every
landowner, consult with other local governments, and hold a
public hearing.
4)Requires that when forming an IFD, local officials must find
that its public facilities are of communitywide significance
and provide significant benefits to an area larger than the
IFD.
5)Requires that every local agency who will contribute its
property tax increment revenue to the IFD to approve the plan.
6)Requires a two-thirds voter approval of the formation of the
IFD and the issuance of bonds.
7)Requires majority voter approval for setting the IFD's
appropriations limits.
8)Specifies that public agencies that own land in a proposed IFD
may not vote on issues regarding the district.
9)Authorizes IFDs to issue a variety of debt instruments,
including bonds, certificates of participation, leases, and
loans.
10)Requires any IFD that constructs dwelling units to set aside
not less than 20% of those units to increase and improve the
community's supply of low- and moderate-income housing
available at an affordable housing cost to persons and
families of low- and moderate-income.
FISCAL EFFECT : This bill is keyed fiscal.
COMMENTS :
1)Purpose of this bill . This bill allows any IFD within the
Oakland Army Base, the Howard Terminal, or the Coliseum City
in the City of Oakland to finance capital facilities or
projects that include freight rail, in addition to those
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projects already authorized under existing IFD law. The bill
also requires the City of Oakland to establish a commission to
advise the City on safety concerns for freight rail projects
on the Howard Terminal. The bill does not create an IFD
within the City - the creation would still need to be done at
the local level following existing IFD law.
The bill is sponsored by the City of Oakland.
2)IFDs . Cities and counties can create IFDs and issue bonds to
pay for community scale public works, including highways,
transit, water systems, sewer projects, flood control, child
care facilities, libraries, parks and solid waste facilities.
To repay the bonds, IFDs divert property tax increment
revenues from other local governments for a period of 30
years. IFDs, however, are prohibited from diverting property
tax increment revenues from schools.
3)Author's statement . According to the author, "As cities move
beyond the dissolution of redevelopment agencies, the City of
Oakland seeks to find new and innovative ways of supporting
job growth and economic prosperity for our community. In
Oakland, infrastructure financing districts have become more
attractive especially to help finance public capital
facilities such as highways, ramps and bridges, arterial
streets and transit facilities.
"Our economic development agency has taken the steps to move
forward on creating IFDs to support the long term, sustainable
growth at our three major economic hubs in the city: the
Oakland Army Base, the Howard Terminal site, and the area
known as Coliseum City. However, to support our role as a
port city, a member of the global economy, and enhance West
Coast export capacity, we need to include freight rail as an
eligible expense for IFDs.
"By building these three economic hubs, we have the
opportunity to create thousands of construction and permanent
job opportunities for a community experiencing an unemployment
rate that is well above the state average. Allowing for
freight rail to be an eligible beneficiary of IFDs, we will
help enhance intermodal capacity for the City and the Port,
substantial emissions reduction due to expanded use of rail,
and substantially increasing the economic competitiveness of
the City."
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4)Policy considerations . This bill requires the City of Oakland
to establish a commission to advise the city on safety
concerns regarding any freight rail development on the Howard
Terminal, and specifies that the commission shall consist of
one member from each of the stakeholder groups of the Howard
Terminal.
The Committee may wish to ask the author to specify, in the
bill, each of these stakeholder groups, and determine whether
the City is appointing a member from each of these groups, or
whether the groups will be appointing a representative
themselves.
5)Arguments in support . The City of Oakland argues that this
bill will greatly support efforts to create more jobs, build
up infrastructure and help the City move forward toward
greater prosperity.
6)Arguments in opposition . None on file.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Oakland [SPONSOR]
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958