By Post Staff

The City of Oakland announced this week that it is successfully moving forward on the sale of $334 million of General Obligation bonds, a milestone that will provide the city with capital funding for city departments to deliver paved roads, restored public facilities, and investments in affordable housing.

“Oakland is on the move and building momentum with this bond sale,” said Oakland Mayor Barbara Lee. “We are reviving access to funding for paving our streets, restoring public facilities we all use and depend upon, and investing in affordable housing for our community, all while maintaining transparency and fiscal discipline.”

“These bonds represent our city’s continued commitment to sound financial management and responsible investment in Oakland’s future,” said Lee.

“Together, we are strengthening our foundation for generations to come,” she said. “I’m grateful to our partners in the City Council for their leadership and support, and to City Administrator Jestin Johnson for driving this process and ensuring we brought it home.”

According to the city, $285 million of the bonds will support new projects and $49 million of the bonds will refund existing bonds for debt service savings.

Oakland issued the Measure U bonds on Dec. 4 after two years of delays over concerns about the city’s financial outlook. They all sold in less than a week.

The new money bonds will pay for affordable housing, roadway safety and infrastructure improvements, and renovations to parks, libraries, senior centers, and other public facilities under the city’s Measure U Authorization.

Citywide paving and streetscape projects will create safer streets for Oaklanders. Additionally, critical facilities like the East Oakland Senior Center and San Antonio Park will receive much-needed renovations, according to the city.

Some of the projects:

• $50.5 million – Citywide Street Resurfacing
• $13 million – Complete Streets Capital Program
• $9.5 million – Curb Ramps Program
• $30 million – Acquisition & Preservation of Existing Affordable Housing
• $33 million – District 3: Mandela Transit-Oriented Development
• $28 million – District 6: Liberation Park Development
• $3 million – District 5: Brookdale Recreation Center Capital Project
• $1.5 million – District 1: Oakland Tool Lending Library (Temescal Branch Library)
• $10 million – District 3: Oakland Ice Center

“I recognize that many naysayers said we couldn’t do it,” said Johnson. “Well, you know what? We’re here now. And we’re going to be here next year and the year after. The fact is we’re getting our fiscal house in order. We said we were going to do it — and we’re doing it.”

Investors placed $638 million in orders for the $334 million of bonds offered by the City. There was broad investor demand with 26 separate investment firms placing orders.  The oversubscription ultimately allowed the city to lower the final interest rates offered to investors and reduce the city’s borrowing cost.

“The oversubscription ultimately allowed the City to lower the final interest rates offered to investors and reduce the City’s borrowing cost,” said Sean Maher, the city’s communications director.

“The Oakland City Council worked closely with the administration to both advance the bond issuance process and ensure that the community had a clear understanding of the City’s timeline and approach,” said Councilmember at-Large Rowena Brown.

“In September, the City Council took unanimous action to authorize the Administration to move forward with the bond sale because these funds are essential to delivering the very improvements our communities have long asked for – safer streets, restored public facilities, and expanded affordable housing,” she said.

Continuing, Brown said, “I want to extend my sincere thanks to City Administrator Jestin Johnson, Finance Director Bradley Johnson, and Mayor Barbara Lee for their leadership, diligence, and steady guidance throughout the City’s bond sale efforts.

“Navigating complex market conditions while keeping Oakland’s long-term infrastructure needs front and center is no small task, and this moment reflects tremendous professionalism and persistence,” she said.

Moody’s gave the city an AA2 rating on the bonds, its third-highest rating, which it gives to high-quality investment-grade securities.

There was both a tax-exempt portion and a taxable portion for the bond offering, reflecting the various uses of the bond proceeds, according to a statement released by the city.

The $143.5 million of tax-exempt bonds have a 30-year final maturity and received an all-in borrowing cost of 3.99%.  The $191 million of taxable bonds have a 24-year final maturity and received an all-in borrowing cost of 5.55%.

The $49 million in tax-exempt bonds that refinance existing obligations of the City resulted in $5.6 million of debt service savings for taxpayers through 2039, or $4.7 million on a present value basis.

Mayor Lee said that, based on her experience serving on the House Financial Services Committee of the U.S. Congress for more than 10 years, city staff has done an exemplary job.

“I have witnessed many cities go to the bond market throughout the years,” she said. “I can tell you with certainty that Oakland’s team is remarkable, and our residents should be proud of their reputation, their competence, and their deep knowledge of this very sophisticated market.”

Looking ahead to the final sale of the bonds, according to the city press statement, pricing marks the point at which the City and investors locked in the final dollar amounts, interest rates, and other key terms of the bond sale. This stage is commonly referred to as the sale date. At pricing, no funds are exchanged. The actual delivery of bonds and receipt of monies occurs at closing, which is scheduled within the next two weeks.

Capital projects receiving this funding will proceed on individual timelines based on their individual conditions and needs. At the time of closing, funding will be immediately available to those projects.

Oakland Post

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By Post Staff

The Oakland Post Salon will host a community meeting with District 3 City Councilmember Carroll Fife and city staff to discuss a proposal for building a Costco in Oakland.

The public meeting will be held Thursday, Dec. 18, from 6 p.m.-7:30 p.m. in City Council Chambers, Oakland City Hall, 3^rd Floor at 1 Frank H. Ogawa Plaza in Oakland.

At the meeting, residents will have the opportunity to:

• Hear about a proposed resolution from Fife for Costco in Oakland
• Find out details from the City Administrator and Oakland’s Real Estate Division
• Ask questions, share ideas about benefits residents are looking for
• Make sure decision-makers know what residents need.

The proposed resolution would give authority to the City Administrator to negotiate terms for an exclusive negotiating agreement (ENA) with Deca Companies and Costco Wholesale Corporation to pursue a potential Costco development at 2008 Wake Ave. in the North Gateway Development Area of the former Oakland Army Base, adjacent to the Port of Oakland.

“As the D3 Council representative, my primary objective is to improve the lives of my constituents, who have endured generations of disinvestment and neglect,” said Fife. “For too long, our West Oakland community has lacked access to essential services, often forcing residents to leave Oakland to find quality options – including groceries. Our families deserve access to affordable groceries, and we want to keep those dollars and tax revenues within our city. This proposed ENA is an important step toward bringing a world-class retailer to Oakland and creating hundreds of good-paying jobs right here in District 3.”

Deca Companies, a San Francisco-based real estate investment and development firm, is leading the development project. Deca has extensive experience with major projects across California, including the redevelopment of the Phillips 66 Refinery in Southern California, large mixed-use California projects in Perris, Bakersfield, and Mead Valley; along with electric vehicle charging lots and industrial projects across the Bay Area and Southern California.

“We’re thrilled to be working with Councilmember Fife to bring a major grocery retailer to West Oakland,” said Travis Duncan, vice president of Deca Companies. “This project sends a clear message: Oakland is open for business. We’re proud to be part of the team working to help alleviate the food desert and bring affordable, high-quality groceries that can serve folks in Oakland and people from across the East Bay.”

Tony Beatty, longtime broker for Costco in the Bay Area noted, “While I cannot comment on the specifics of potential opportunities that are currently being evaluated, existing Costco locations in the Bay Area perform very well, and we have been looking at potential expansion opportunities where they can best serve their members.”

If approved by the full City Council, the City Administrator would be authorized to negotiate terms for an exclusive negotiating agreement with Deca Companies and Costco Wholesale Corporation, a critical first step. If negotiations are fruitful, the resulting ENA would come before the City Council for approval.

In the interim, community outreach and engagement will continue to ensure residents are included in the decision-making process in a meaningful way, according to a statement from Fife’s office.

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