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<br />Honorable Mayor and Members of the City Council: <br />BACKGROUND <br />BART intends to construct a new BART station near the Stoneridge Mall (the West <br />Dublin/Pleasanton Station,) This project is described in more detail in the attached staff report <br />that went to the City Council in October in conjunction with its joint meeting with the City <br />Council of Dublin, <br />In order to finance construction of this station, BART intends to issue bonds. As part of that <br />process, BART will need to establish debt service reserves, In addition to the debt service for <br />this station, BART will also pay expenses related to the operation and maintenance of the <br />station, using revenues derived from the station and from ancillary uses such as parking, <br />BART also intends to ground lease or sell adjacent property that it owns for development of a <br />hotel (Dublin), apartment project (Dublin) or office (Pleasanton), which development will <br />provide additional property tax and other benefits to Dublin and Pleasanton, <br />Because of the need for BART to establish a debt service reserve and a reserve for expenses for <br />the operation and maintenance of this new station, representatives of BART, Pleasanton, Dublin <br />and the County have discussed the cities and the county providing funding to BART for such <br />purposes: Pleasanton's commitment would be one million dollars; Dublin's $2,5 million; and the <br />County's, $4,5 million, Potentially, those funds would be repaid, <br />The attached draft Funding Agreement sets forth the basic terms of this proposal. It is intended <br />to replace a 2000 Memorandum of Understanding between BART, Pleasanton and Dublin in <br />which Pleasanton and Dublin agreed to pledge for a number of years (between 12 and 17) the <br />real property tax revenues it would receive from the private development on the BART property <br />in order for BART to have a guaranteed income stream to meet debt service and other operating <br />expenses for the station, <br />DISCUSSION <br />Each party would fund its commitment in two equal installments; the first would be due when <br />the bonds are sold (currently scheduled for early 2006) and the other two years thereafter, The <br />commitment is absolute and not conditioned on the other parties' making their payment. BART <br />would have absolute discretion to use the funds either for debt service on the bonds (for the new <br />station) or for expenses related to the operation or maintenance of the new station, if the <br />revenues from the station are insufficient to cover either the debt service, the operating <br />expenses, or both, <br />SR:05:309 <br />Page 2 <br />