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Committee backs authorization for $41.34M in Treasure Island special tax bonds
Summary
The Budget & Finance Committee recommended that the Board authorize up to $41,340,000 in non‑rated special tax bonds for Improvement Area 1 (Yerba Buena Island) to reimburse developer infrastructure and fund issuance costs; staff noted a required minimum 3:1 value-to-lien ratio and development risks.
The Budget & Finance Committee on May 19 recommended authorization of up to $41,340,000 in special tax bonds for Improvement Area No. 1 of the Treasure Island Community Facilities District, which covers development on Yerba Buena Island.
Luke Brewer of the Comptroller's Office of Public Finance told the committee these are non‑rated, land‑secured special tax bonds designed to finance developer‑completed infrastructure, a debt service reserve, capitalized interest and issuance costs. Brewer said city policy requires a value‑to‑lien ratio of at least 3:1 and cited an appraisal value of about $175,000,000 for the CFD, which supports a combined outstanding and proposed issuance within policy limits.
Brewer cautioned the committee about development and credit risks for new real‑estate projects, including taxpayer concentration while vertical development is incomplete, and said bonds are limited obligations secured by special taxes levied within the improvement area (the General Fund is not liable for repayment, though the city's name and reputation are linked to the issuance). The committee received no public comment and moved the item to the full Board with a positive recommendation by roll call vote.
Next steps: staff will proceed with the preliminary official statement and bond planning; the Board will consider the resolution on the full agenda.
