Reso 2006-058 - Laserfiche WebLink

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SUMMARY REPORT PURSUANT TO SECTION 33433 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN LEANDRO AND MERCY HOUSING CALIFORNIA I. INTRODUCTION The California Health and Safety Code, Section 33433, requires that a redevelopment agency that wishes to sell or lease property to which it holds title and that was acquired in whole or in part with property tax increment funds must first secure approval of the proposed sale or lease agreement from its local legislative body after a public hearing. In addition, a copy of the proposed sale or lease agreement and a summary report that describes and contains specific financing elements of the proposed transaction must be available for public inspection prior to the pUblic hearing. Section 33433 provides that the following information shall be included in the summary report: 1. The cost of the agreement to the redevelopment agency, including land acquisition costs, the costs of any improvements to be provided by the agency, plus the expected interest on any loans or bonds to finance the agreement; 2. The estimated value of the interest to be conveyed or leased, determined at the highest and best use permitted under the redevelopment plan; 3. The estimated value of the interest to be conveyed in accordance with the uses, covenants, and development costs required by the sale or lease, Le., the reuse value of the site; 4. An explanation of why the sale or lease of the property will assist in the elimination of blight, as required by Section 33433; and 5. The purchase price or sum of the lease payments which the lessor will be required to make during the term of the lease. If the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased, determined at the highest and best use consistent with the redevelopment plan, then the agency shall provide as part of the summary an explanation of the reasons for the difference. This report outlines the salient parts of the Disposition and Development Agreement (DDA) to be entered into by and between the Redevelopment Agency of the City of San Leandro.(Agency) and Mercy Housing California (Developer). Under this Agreement, the Developer or its affiliate will renovate and convert the subject property into a 58-unit apartment complex. The purpose of this analysis is to determine the net cost of the Agreement to the Agency.