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Port seeks up to $58.3M in Mission Rock special-tax bonds to reimburse infrastructure costs
Summary
Port and development partners briefed the committee on a proposed fourth series of Mission Rock special-tax (CFD) bonds of up to $58.3 million to reimburse developer horizontal infrastructure costs; presenters highlighted project progress, funding structure, and market/rate risks that affect proceeds.
Port staff and the Office of Public Finance on Oct. 25 presented two resolutions authorizing up to $58.3 million in special-tax bonds and related pledge actions for Mission Rock’s horizontal infrastructure.
Port representative Wyatt Donnelly Landau (and Port colleagues) described Phase 1 progress: Parcel A (The Canyon) is complete and occupied, Parcel B (office/life sciences) is leasing, Parcel F is under construction and Parcel G is under tenant fit-out for Visa. The horizontal infrastructure — streets, parks, water, sewer and sidewalk improvements — was initially funded largely by developer equity and Port land value; the CFD and Infrastructure Financing District (IFD) tax increments are now sufficient to issue another bond series to reimburse those upfront costs.
Technical materials showed estimated par bond proceeds near $47 million and about $39.5 million net to the project after issuance costs, with the $58.3 million not-to-exceed authorization allowing flexibility should market interest rates change. Port staff emphasized the bonds are land-secured, payable solely from Mission Rock tax increment and not general-fund obligations. Bridget Katz of the Office of Public Finance explained a good-faith true interest cost estimate (about 5.86% in early September) that may have risen since; staff are targeting a late-November to early-December closing.
The committee approved forwarding the resolutions to the full Board with a positive recommendation.
