Controller’s office to accept settlement payment for Pier 1 special taxes; committee forwards resolution

The Budget and Finance Committee on March 19 voted 3–0 to forward to the full Board of Supervisors a resolution authorizing acceptance of a settlement payment from AMB Pier 1 LLC to resolve a delinquent special tax payment for Improvement Area No. 1 of the City and County’s special tax district.

Vishal Dreddy of the Controller’s Office of Public Finance explained the resolution would allow the city to accept payment of a previously unpaid special tax installment for a parcel leased by AMB Pier 1. He said the original missed payment was $47,001.84 and the proposed settlement amount of $68,008.95 includes the missed amount, a 10% penalty, monthly interest the city would have earned in the treasurer’s pool and other settlement costs. “The intent of the agreement is to make the city whole for this missed tax payment and to allow the controller's office to balance its books for this particular account,” Dreddy said.

Dreddy said the special tax district was established in fiscal year 2009–10 and that the city uses payments from the lessee to pay debt service on bonds issued for energy-efficiency projects at Pier 1. No members of the public spoke on the item. Chair Connie Chan moved to forward the resolution to the full board with a positive recommendation; the roll-call vote recorded Supervisors Matt Dorsey, Joe Ingardio and Chair Chan as voting aye.

The resolution, if approved by the Board of Supervisors, will allow execution of a settlement agreement to accept $68,008.95 and close the accounting discrepancy for the district account.