10A Action 2008 0602 Attach - Preliminary Official Statement

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allocation bonds. Such bonds are payable from property taxes collected within a redevelopment project area attributable to the increase in assessed valuation of property therein, as explained in greater detail herein. The 2008 Bonds are payable from and secured by certain tax increment revenues of the Agency constituting Tax Revenues generated from property in the Project Area. Tax Revenues is defined in the Indenture and generally includes certain ad valorem property taxes attributable to increases in the assessed valuation of certain property (except public property and property exempt from taxation) in the Project Area over that shown on the assessment roll for the adjusted base year. Such taxes are eligible for allocation to the Agency pursuant to the Redevelopment Law in connection with development or rehabilitation of property within the Project Area. Tax Revenues are more fully described under the caption "SECURITY FOR THE BONDS -- Tax Revenues". Risk Factors. Any future decrease in the taxable valuation in the Project Area or in the applicable tax rates could reduce the Tax Revenues allocated to the Agency and correspondingly could have an adverse impact on the ability of the Agency to pay debt service on the 2008 Bonds. See "RISK FACTORS" herein. The Project Area. On July 11, 1993, the City Council of the City (the "City Council") adopted the Redevelopment Plan for the Alameda County - City of San Leandro Redevelopment Project Area (as amended, the "Redevelopment Plan") by Ordinance No. 93- 012. The plan has been amended six times, as described herein. The Project Area encompasses approximately 1,700 acres and is largely comprised of single-family residential parcels, along with commercial and industrial parcels. The assessed value of the Project Area for fiscal year 2007-08 is approximately $2.217 billion and the base year valuation is $903,597, 367. 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. The City. The City of San Leandro is a charter city operating under the mayor/council/manager form of government. The City was incorporated in 1872 under the laws of the State of California. It is located in central Alameda County, approximately 20 miles southeast of San Francisco. The City has a population of approximately 81,466 as of January 1, 2007. For certain information regarding the City, see "APPENDIX D -City of San Leandro General Information." The 2008 Bonds are not an obligation of the City. The Agency. The Agency was created by the City Council on October 17, 1960 under the provisions of the Redevelopment Law, at which time the City Council declared itself to be the governing board of the Agency. The Project Area is one of three redevelopment project areas of the Agency. Miscellaneous. There follows in this Official Statement, which includes the cover page and Appendices hereto, a brief description of the 2008 Bonds, the Agency, Tax Revenues, the Project Area, security for the 2008 Bonds, risk factors and limitations on Tax Revenues and certain other information relevant to the issuance of the 2008 Bonds. All references herein to the Indenture are qualified in their entirety by reference to the definitive form thereof, all references to the 2008 Bonds are further qualified by references to the information with respect thereto contained in the Indenture. A summary of certain provisions of the Indenture is included in APPENDIX C. A recent financial statement of the Agency is included in APPENDIX A. The information set forth herein and in the Appendices hereto has been furnished by the Agency and includes information which has been obtained from other sources which are believed to be -2-