MO 2007-005 - Laserfiche WebLink

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· The Agency is participating in the planning for a new medical and retail shopping center on a 63-acrc abandoned Albertson's distribution site. The Kaiser Pennanente site, on Marina Boulevard and Merced Street, just off Interstate 880, will be transfonned from underutilized industrial property to a vital commercial and medical center with a 300-bed hospital scheduled for completion between 2009 and 2015. · The Office of Business Development continues to work on the final phase of the Marina Boulevard Auto Mall, including a proposed new Suzuki dealership and attraction of a new dealer for a remaining parcel. · The Agency continues to work with the private developer of Creekside Plaza, the City's first Class A office complex, on predevelopment marketing of the expanded third and final building in the Creekside Plaza office complex. · The Agency will be involved in new development projects on East 14th Street as opportunities arise with property owners and with the on-going renovations of Bay fair Center. · The Agency acquired the site of an abandoned car dealership at 13889 East 14th Street for the development of a designated Senior Center. Planning and site work is undelWay. The old and vacant showroom is scheduled [or demolition in 2006. · With demand anticipated to be comparable to 2005-06 for staff support for Agency activities, similar proportions of salaries and benefits for the Office of Business Development will be charged to the Redevelopment Agency in Fiscal Year 2006-07. · Due to a significant reduction in Community Development Block Grant (CDBG) funds to the City from HOD, the City's Housing Services Division had to increase the proportions of salaries and benefits charged to the Redevelopment Agency in FY 2005-06. ECONOMIC FACTORS Overall, tax increment revenue grew by 5.2% in the current year, but increased most notably in the West San Leandro Project Area by 13.9% resulting from the turnover of industrial property and decreased in the Joint Project Area by 6.6%. Thc Joint Project Area continues to be affected by the prior year change to the Agency's tax-increment sharing agreement with the Alameda County Community Development Agency (County) from 60% Agency - 40% County to 40% Agency - 60% County. The Plaza Project Area revenues increased modestly during the year by 4.5%. In both the national and local economy, the housing and commercial property markets have entered a true slowdown and the Federal Reserve has placed a hold on raising interest rates since June 2006, after 17 consecutive increases, suggesting that overall inflation has so far been contained as of the date this reporting. According to several forecasts as of third quarter 2006, the local real estate market will continue to soften. As a result of the projected slowdown in property turnover, the Agency projects ongoing moderate growth at a percentage less than that experienced in during the last three fiscal years. 9