10A Action 2008 0602 Attach - Preliminary Official Statement

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or otherwise becomes available, and expenditures are recognized when incurred. The firm reported after their examination that they noted no instances of noncompliance for the fiscal year ended June 30, 2007. See "APPENDIX A -Audited Financial Statements of the Agency for Fiscal Year Ended June 30, 2007." The Agency has not requested nor did the Agency obtain permission from Caporicci, Cropper & Larson, LLP to include the audited financial statements as an appendix to this Official Statement. Accordingly, Caporicci, Cropper & Larson, LLP has not performed any post-audit review of the financial condition or operations of the Agency. In connection with the issuance of the 2008 Bonds, the Agency has engaged Urban Analytics, LLC, San Francisco, California (the "Fiscal Consultant") to prepare a Fiscal Consultant Report dated 2008. See "APPENDIX B -Fiscal Consultant Report". The Project Area The Alameda County -City of San Leandro Redevelopment Project Area consists of approximately 1,700 acres. The Redevelopment Plan for the Project Area was originally adopted by the San Leandro City Council on July 8, 1993 by Ordinance No. 93-012. It had been amended five times and a sixth amendment (the "Sixth Amendment") was submitted to the City Council on November 19, 2001, as described in the following paragraph. The Project Area is a "joint" area due to the inclusion of land in both unincorporated Alameda County and the City. Accordingly, the Redevelopment Plan provides that tax increment revenues generated from the Project Area are split between the City and the County of Alameda by a formula. The percentage payable to each varies over time. See "THE AGENCY AND THE PROJECT AREA -Agency Tax Sharing Obligations -County Project Area Agreement." The Tax Revenues pledged for payment of the 2008 Bonds are only related to the portion of the tax increment revenues allocated to the Agency. The Agency's Sixth Amendment to the Redevelopment Plan for the Project Area removed a 47-acre parcel which is the largest parcel of the six-parcel site of Bayfair Mall, an enclosed mall that has been the subject of substantially reduced County assessed valuation. The current assessed valuation was at that time below the base year value utilized in the calculation of tax increment for the area. The Sixth Amendment was approved on November 19, 2001, and took effect immediately, which had the effect of increasing the net tax increment allocated to the Agency. Land Uses The Redevelopment Plan for the Project Area sets forth the principal land uses permitted, in accordance with the City's General Plan, and the building restrictions in project development. It also assigns the Agency and the City their respective responsibilities in carrying out the Redevelopment Plan. Provision is made for rehabilitation as well as new construction and sets forth conditions and procedures required under both approaches. Construction is required to comply with all applicable State and local laws in effect, including without limitation, building, electrical, heating and ventilating, housing and plumbing codes of the City. Property within the Project Area is currently zoned and utilized for a variety of uses. The approximately 1,700-acre Project Area's land area is roughly half within the City and half within the County. The Project Area includes a mix of commercial, residential and industrial uses, including shopping centers, a regional auto mall, a new housing subdivision, and manufacturing plants. -14-