Residents in the Larkspur Marina neighborhood are eyeing the formation a special district to fund a $22 million bond to repair a protective bulkhead.
The Larkspur City Council voted unanimously at a meeting Aug. 7 to pass three resolutions to help develop a community facilities district, a government entity that exists to secure financing through the sale of bonds for public improvements and services.
The community facilities district allows the levy of a special property tax paid by property owners to make principal and interest payments on the bonds that would extend between 30 to 35 years.
The resolutions included language to adopt local policy related to the district, establish intent to create a district and pave the way to incur bond indebtedness.
The vote initiates a public process which will be followed by a public hearing on the levy of the special tax and the issuance of the community facilities district. The hearing is set for the Sept. 18 council meeting.
If the district is established, two-thirds of voters in the district would have to approve a special tax to fund the project. The vote would be conducted by mail-in ballot, likely in 2025, said City Manager Dan Schwarz.
Mark Pressman, a consultant who serves as the city’s municipal adviser, said the project was essential to protect the homes.
“This improvement is really needed,” Pressman said. “The property owners are against a wall. They need to do this to save their property. And so this is the best, most efficient, most effective means of financing it.”
The property owners association is committed to the project, Pressman said. He said different financing approaches were evaluated, including private funding, but forming a community facilities district was determined to be the best way to disperse payments over time and ensure a collective fix.
The bulkhead is located on Riviera Circle, within a community that surrounds Larkspur Lagoon.
The neighborhood consists of 98 residential parcels with lagoon frontage in the back of each parcel. The land portion of the parcels are separated by a bulkhead, or dividing wall, which was built over 50 years ago and is deteriorating.
The property owners association has decided to pursue the development of a replacement bulkhead for the entire community rather than pursue a piecemeal approach by individual property owners, a staff report said.
Lewis Tanenbaum, president of the property owners association, said he was confident in the public support within the community.
“Ultimately we did have a vote that allowed the property owners association to take control of the management of the bulkhead,” he said. “That allowed us to move forward to develop a situation where one design would be implemented for 100% of people.”
Schwarz called the project “substantial.”
“That creates a bit of a collective action challenge,” he said. “Even though this is a private interest, there is a public interest.”
The council’s decision is considered procedural and is required to initiate the community facilities district formation process, Schwarz said.
“I obviously want to help and it would be great if we could help,” said Mayor Scot Candell.
The council would ultimately sit as the community facilities district board. Operationally, while it will appear they are in charge, their role would only be to facilitate the financial transaction of the bond, Schwarz said.
City staff time for the formation process and ongoing annual administration expenses of the community facilities district are anticipated to be offset by reimbursement from the annual special tax levy or from a special fund paid for by the association.
The association has agreed to reimburse the city for staff time for the formation process if the election to form the community facilities district is unsuccessful.