8G Consent 2008 0107 - Laserfiche WebLink

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REDEVELOPMENT AGENCY OF SAN LEANDRO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2007 8. LONGTERM OBLIGATIONS (Continued) Bay Fair Mall Tax Increment Repayment - (Joint Project Area) San Leandro Joint Project Area included a Bay Fair Mall commercial complex in its Assessed Value Base (AVB) calculations. The owner of the Mall appealed the assessment, and got relief in AVB because of the economic downturn, closure of businesses and a drastic drop in its revenues. This resulted in a reduction of the Agency's tax increment. As a result, the Agency amended the Redevelopment Plan to exclude the Mall from its ABV calculations, and agreed to pay back excess tax increments that were paid while the Bayfair assessment appeal was being considered. Such indebtedness is $1,035,070 and will be paid back to the county in three years. Against this, the Agency is entitled to recover $106,358 paid to various pass-through Agencies in the prior years. Owner Participation Agreements The Agency has entered into the following agreement which have a contingency liability to the Agency: Ford Motor Company Argonaut Holding (General Motors) Batarse Family Trust Disposition & Development Amin Concord LLC Total Balance Balance June 30, 2006 Retirements June 30, 2007 2,403,430 $ (107,170) $ 2,296,260 431,181 (177,421) 253,760 390,000 - 390,000 182,000 (182,000) $ 3,406,611 $ (466,591) $ 2,940,020 ^ Ford Motor Company Owner Participation Agreement -The agreement requires the Agency to make annual payments equivalent to 50% of the sales tax generated above a base of $277,000 by the sale of vehicles as part of the Ford Store San Leandro development. The original amount due was $3,000,000 to be paid over several years depending on the volume of auto sales at no interest_ As of June 30, 2007, the amount due is $2,296,260. ^ Argonaut Holding (General Motors) Owner Participation Agreement -The agreement requires the Agency to make annual payments equivalent to 50% of the sales tax generated by the sale of vehicles as part of the GM/Pontiac GMC development. The original amount due was $885,000 to be paid over several years depending on the volume of auto sales as no interest. As of June 30, 2007, the amount due is $253,761. ^ Bartarse Family Trust Disposition and Development Agreement -The agreement requires the Agency to make annual payments equivalent to 50% of the sales tax generated by the sale of vehicles as part of the a proposed new car dealership. The original amount due was $390,000 to be paid over several years depending on the volume of auto sales at no interest. As of June 30, 2007, the amount due is $390,000. 31