Title
a. Receive an update regarding the Fort Ord Reuse Authority’s proposal to issue a bond against its statutory share of property tax revenue for building removal in the former Fort Ord area;
b. Receive cost estimates for removing remaining structures on County properties in the former Fort Ord;
c. Consider making a recommendation to the Board of Supervisors; and
d. Provide direction to staff.
Report
RECOMMENDATION:
It is recommended that the Fort Ord Committee:
a. Receive an update regarding the Fort Ord Reuse Authority’s proposal to issue a bond against its statutory share of property tax revenue for building removal in the former Fort Ord area;
b. Receive cost estimates for removing remaining structures on County properties in the former Fort Ord;
c. Consider making a recommendation to the Board of Supervisors; and
d. Provide direction to staff.
SUMMARY/DISCUSSION
In December 2019, the Fort Ord Reuse Authority (FORA) authorized issuance of up to $50 million in bonds to fund building removal on the former Fort Ord. FORA has filed a validation action for the proposed bond issuance; the public response period ends March 9, 2020. The FORA Administrative Committee scheduled a Special Meeting on February 24, 2020, at 8:30 a.m., to discuss the FORA bond issuance and begin negotiating terms for interjurisdictional agreement(s) needed, should FORA issue bonds.
FORA staff previously provided cost estimates of approximately $2.24 million to conduct building removal on County lands. The Fort Ord Committee held a special meeting on October 1, 2019, to locations where County (and Successor Agency) have remaining buildings/structures that may benefit from funding derived if FORA issues a bond. Based on discussions by the Committee and further consideration by staff, the Resource Management Agency (RMA) developed its own cost estimates to demolish the remaining buildings on County lands in the former Fort Ord. Attachment A provides maps of the sites that were evaluated for possible building removal. Attachment B provides RMA cost estimates, by building/structure, for demolition and disposal.
Staff is seeking the Fort Ord Committee’s recommendation to the Board of Supervisors and guidance for staff in reviewing FORA bond documents and negotiating agreement terms with the jurisdictions related to building removal should FORA issue bonds.
OTHER AGENCY INVOLVEMENT:
RMA sits on the FORA Administrative Committee where the bond issuance proposal is discussed.
FINANCING:
RMA’s total estimated cost for demolishing and disposing of County buildings on former Fort Ord lands is $12.97 million, which far exceeds the proposed $2.24 million FORA bond proceeds for the County. Based on discussions at the Fort Ord Committee, retention of some of the remaining buildings (e.g., bunkers) for continued or future use is apparently desired.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Issuance of bonds for the building removal by FORA would support the Board of Supervisors’ Strategic Initiative for Economic Development by removing a significant barrier to redevelopment of the former Fort Ord area.
X Economic Development
__ Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Melanie Beretti, Property Administration/Special Programs Manager (831) 755-5285
Reviewed by: Shawne Ellerbee, RMA Deputy Director of Administrative Services
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A - Site Maps of Building Removal Locations
Attachment B - RMA Fort Ord Building Removal Cost Estimates