10A Action 2008 0602 Attach - Preliminary Official Statement

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permissible under Proposition 13; they are also known as 33676 payments for the section of redevelopment law that required them. The County Auditor-Controller calculates the annual inflation adjustment on land and improvements from the base year forward. This annual inflation adjustment is allocated to eight taxing entities based on their proportionate share of revenue within the Project Area's tax rate areas. The 2007-08 Section 33676 payment was $1,088,904, distributed to the County, the Chabot-Las Positas Community College District, the Hayward Unified School District, the County Library District, County Fire District, County Flood Control District, Mosquito Abatement District, and the City. The Section 33676 payment is not considered tax increment for the purposes of the housing set-aside requirement under the Attorney General opinion 93-209 and so is not subject to the housing set-aside, as it is not tax increment it is also not counted against the tax increment cap. The allocation of pass-through payments to each taxing entity is based on an apportionment factor that is assigned to each entity in the Project Area by the County Auditor- Controller. These allocation percentages are shown in "APPENDIX B - FISCAL CONSULTANT'S REPORT -Table 4. Other Agreements The Agency has several Owner Participation Agreements (each, a "OPA") and a Disposition and a Development Agreement (each, a "DDA") with property owners in the Project Area, as well as an Improvement and Reimbursement Agreement with the owners of the Bay Fair Mall. The three OPAs are with (i) Argonaut Holdings for an expansion of an auto mall, (ii) F.H Dailey for development of a Chevrolet dealership and (iii) with Ford Leasing for development of a Ford dealership. The DDA is with the Batarse Family Trust for development of the Auto Mall. The Ford, Argonaut and Batarse agreements require the Agency to pay an amount tied to sales tax generation while the Agency's obligation under the F.H. Dailey agreement is related to the purchase of land. The Agency has determined that its obligation under these agreements are not pledges of tax increment. The Agency also has an Improvement and Reimbursement Agreement executed in December, 1994 (the "Development Agreement") between Westland Bay Fair Mall, L.P., and the San Leandro Redevelopment Agency, as amended. The Agency's agreement with the Bay Fair Mall requires the Agency to pay to the Mall owners a total amount of $4,000,000 in specified annual installments not to exceed $400,000 per year. This obligation is senior to the pledge of Tax Revenues for the payment of debt service on the Bonds. [VERIFY THE FOLLOWING] The Agency has committed $1,550,000, an amount equal to its remaining obligation under the agreement, to an escrow account, effectively discharging its obligation under this agreement. ERAF Obligations The State of California faces significant budget issues for fiscal year 2007-08 and beyond. In connection with its approval of former budgets, the State Legislature enacted legislation, that among other things, reallocated a portion of funds from redevelopment agencies to school districts by shifting a portion of each agency's tax increment to school districts ("ERAF" shifts). -20-