10A Action 2008 0602 Attach - Preliminary Official Statement

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TABLE OF CONTENTS INTRODUCTION ....................................... ...........1 THE 2008 BONDS .................................... ...........~ Description ............................................. ........... Redemption ............................................ ........... 4 General Redemption Provisions ........... ...........4 THE FINANCING PLAN ........................... ...........5 Estimated Sources and Uses of Funds ...........6 DEBT SERVICE SCHEDULE .................. ...........7 SECURITY FOR THE BONDS ................ ...........8 Tax Allocation Financing ....................... ........... 8 Allocation of Taxes ................................ ...........8 Tax Revenues ........................................ ...........9 Issuance of Additional Debt .................. .........10 Reserve Account .................................... .........11 THE AGENCY AND THE PROJECT AREA .......................................................... .........13 Authority and Personnel ........................ .........13 Agency Administration ........................... .........13 The Project Area .................................... .........14 Land Uses .............................................. .........14 Allocation of Taxes ................................. ........17 Limitations on Tax Revenues ................. ........17 Agency Tax Sharing Obligations ........... ........18 ERAF Obligations ................................... ........20 Assessed Valuation ................................ ........21 Major Property Owners .......................... ........23 Tax Rates ................................................ ........24 Appeals of Assessed Values ................. ........25 Low and Moderate Income Housing ...... ........27 Projected Tax Revenues ........................ ........27 Project Area Bonded Indebtedness ....... ........30 RISK FACTORS ............................................ .... 30 Reduction in Taxable Value ....................... .... 30 Reduction in Inflationary Rate ................... .... 31 Levy and Collection .................................... ....31 Tax Increment From Unsecured Roll........ .... 31 Parity Debt .................................................. ....31 State Budget Deficit ................................... .... 31 Earthquake Risk ......................................... .... 32 Hazardous Substances .............................. .... 32 Bankruptcy Risks ........................................ .... 32 Secondary Market ...................................... .... 33 Loss of Tax Exemption .............................. .... 33 LIMITATIONS ON TAX REVENUES ............ .... 33 Property Tax Limitations: Article XI IIA of the California Constitution .............................. 33 Implementing Legislation ............................ ... 34 Challenges to Article XIIIA .......................... ... 34 Possible Reductions to Tax Revenues Arising from Santa Ana Litigation ............... ... 35 Property Tax Collection Procedures .......... ... 35 Unitary Property ........................................... ... 36 Statement of Indebtedness ......................... ... 37 Exclusion of Tax Revenues for General Obligation Bonds Debt Service .................. ... 37 Appropriations Limitations: Article XIIIB of the California Constitution ........................... ... 38 CONTINUING DISCLOSURE ........................ ... 38 NO LITIGATION .............................................. ... 39 NO RATING .................................................... ... 39 TAX MATTERS ............................................... ... 39 CERTAIN LEGAL MATTERS ........................ ... 40 UNDERWRITING ........................................... ... 41 MISCELLANEOUS ......................................... ... 41 APPENDIX A -Audited Financial Statements of the Agency for Fiscal Year Ended June 30, 2007 APPENDIX B - Fiscal Consultant's Report APPENDIX C - Summary of Certain Provisions of the Indenture APPENDIX D - City of San Leandro General Information APPENDIX E - Form of Bond Counsel Opinion APPENDIX F -Form of Continuing Disclosure Certificate APPENDIX G - Book Entry Only System