Forget the Coliseum feral cat story! The Oakland Coliseum Joint Powers Authority (JPA) can establish its very own Enhanced Infrastructure Financing District to help pay for Coliseum-related development projects.
The language from Enhanced Infrastructure Financing Districts Resource Guide is clear. It reads as follows:
What is an “Enhanced Infrastructure Financing District” (EIFD)
On January 1, 2015, Governor Jerry Brown signed into law, SB628, “Enhanced Infrastructure Financing Districts” (EIFDs) which allows for a separate government entity1 to be created by a city or county within a defined area to finance infrastructure projects with community-wide benefits. EIFDs are an upgraded version of the Infrastructure Financing District (IFD). When formed through a Joint Powers Authority (JPA), an EIFD can be established without voter approval. EIFDs can finance public infrastructure projects, as well as private child care centers, affordable housing and parking facilities. While no voter approval is required to form an EIFD, a 55% affirmative vote is required for the EIFDs issuance of bonds.2 Through the establishment of a Joint Powers Authority, the EIFD accommodates more flexible institutional collaborations.
The Oakland Coliseum Joint Powers Authority Can Form Its Own EIFD
The idea here is to form an EIFD of all of the property within a boarder formed by 66th Avenue, San Leandro Boulevard, 98th Avenue, and The San Leandro Channel Inlet. A tax increment financing zone would be established using that EIFD boundary. Within it, not only would we capture property tax revenue for use in a planned Coliseum City Complex bond issue, but any special fees like those from stadium seat licenses, and any special surcharge that may be established.
The objective of creating this EIFD and forming the Coliseum JPA Public Financing Authority and Coliseum JPA Infrastructure Financing Plan, is to cause the creation of a flow of funds that could be applied to what development plans the African American Sports and Entertainment Group (AASEG) create. The establishment of the EIFD will help accelerate overall project financing, and establish a basis for the payment of development project administrative costs using a small percentage of TIF revenue money.
The Coliseum JPA would have to engage the County of Alameda and the City of Oakland’s participation, as well as BART and AC Transit and EBMUD taxing agencies. Given the nature of the Coliseum property and lands that would be in the EIFD, and the BART and AC Transit operations within the EIFD, planning for the use of expected revenues to be able to catalyze BART and AC Transit program plans in the EIFD is possible.
The EIFD would be large enough to capture revenue for, and install infrastructure improvements to combat, expected future sea-level rise. Meanwhile, there would be enough revenue generated to cause the construction of extremely affordable housing in the EIDF.
Next Steps Toward A Coliseum EIDF
The next step is a resolution to establish the Coliseum Public Financing Authority (PFA) and for it to hire a consulting firm and secure City of Oakland staff to design and present the EIDF boundary, as well as work with the County of Alameda in the boundary formation process. The Infrastructure Financing Plan would have two primary parts: one for a “wish list” of projects, and the the other for the AASEG project. The “wish list” must and will complement the AASEG by calling for needed sea-level rise fixes, small business and affordable housing subsidy programs, and street and road improvement, as well as the BART and AC Transit projects.
Note: AB 336, which was also signed on June 29th, will allow any member of the legislative body of a participating affected taxing entity who serves as a member of the PFA of an EIFD, to serve as a member of the governing body of a Joint Powers Authority (JPA) where the taxing entity is a member. This bill eliminates potential conflicts in current law against public officials holding incompatible offices. Incompatible office law generally prohibits a public officer, including an appointed or elected member of a governmental board, commission, committee, or other body, from simultaneously holding two public offices that are incompatible. AB 336 has the potential to lower transactional costs of an EIFD and may increase efficiency by clarifying the roles of board members.
In closing, establishing the Coliseum EIFD will unlock and speed up the overall Oakland Coliseum development process.