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the Agency's compliance with laws, regulations and administrative requirements governing <br />activities of the Agency. Caporicci & Larson, LLP, Oakland, California, audited the financial <br />statements of the Agency for the fiscal year ended June 30, 2003. The firm's examination was <br />made in accordance with generally accepted auditing standards. The City and the Agency <br />follow fund accounting principles reflecting the modified accrual basis of accounting in which <br />revenue is recognized when earned or otherwise becomes available, and expenditures are <br />recognized when incurred. The firm reported after their examination that they noted no <br />instances of noncompliance for the fiscal year ended June 30, 2003. See "APPENDIX A - <br />Audited Financial Statements of the Agency for Fiscal Year Ended June 30, 2003." <br />The Agency has not requested nor did the Agency obtain permission from Caporicci, <br />Cropper & Larson, LLP to include the audited financial statements as an appendix to this <br />Official Statement. Accordingly, Caporicci, Cropper & Larson, LLP has not performed any <br />post-audit review of the financial condition or operations of the Agency. <br />In connection with the issuance of the Bonds, the Agency has engaged Urban Analytics, <br />LLC, San Francisco, California (the "Fiscal Consultant") to prepare a Fiscal Consultant Report <br />dated , 2004. See "APPENDIX B -Fiscal Consultant Report". <br />The Project Area <br />On July 19, 1999, the City Council of the City (the "City Council") adopted the <br />Redevelopment Plan for the merged West San Leandro/MacArthur Boulevard Redevelopment <br />Project (as amended, the "Redevelopment Plan") and established the boundaries thereof. The <br />project area is comprised of two geographical areas. The western portion, internally known as <br />the "West San Leandro Area", is located in the City's industrial core which is entirely west of <br />Interstate 880 and comprises approximately 1,014 acres. The other, smaller, portion is largely <br />commercial and is known internally as the "MacAruthur Boulevard Area". This portion abuts a <br />portion of Interstate 580 in the northern section of the City and comprises approximately 16 <br />acres. Both areas generate tax increment. <br />Shortly after formation of the Project Area in 1999, the Agency agreed to remove <br />seventeen parcels from the initial Project Area in response to concerns raised by the County. <br />The Agency and County signed a Memorandum of Understanding dated November 30, 1999, <br />which identified the seventeen, parcels to be removed. The Agency amended the <br />Redevelopment Plan and removed the parcels in Ordinance 2000-014 dated June 26, 2000. The <br />Controller subsequently removed the parcels from both the base year assessed valuation and <br />the annual tax increment. The removed parcels (which currently comprise 16 parcels due to a <br />merger of two parcels) are: <br /> 2003-04 <br />Parcel Number Owner Name Property Location Total A.V. <br />077A-0647-009-27 Dean Foods Co. of California 2550 Merced St. $ 5,653,015 <br />077A-0647-009-32 Seventeen One Inc. 2550 Merced St. 1,675,785 <br />077A-0647-009-35 Walnut Creek Canning Co. Merced St. 259,085 <br />077A-0647-009-37 Lucky Stores Inc. Marina Blvd. -- ' <br />077A-0647-009-42 Walnut Creek Canning Co. 2550 Merced St. 2,976,723 <br />077A-0647-009-45 Lucky Stores Inc. 1701 Marina Blvd. 61,364,806 <br />077A-0647-010-00 Delta Properties 1803 Marina Blvd. 695,082 <br />077A-0647-011-00 Delta Properties 1899 Marina Blvd. 862,487 <br />077A-0647-012-03 Delta Properties 2300 Merced St. 1,857,351 <br />077A-0745-040-01 Bigge Development Company 10750 Bigge St. 970,490 <br />077A-0745-041-01 Bigge Development Company 10700 Bigge St. 642,389 <br />077A-0745-043-01 Coyne Investments LP 10850 Bigge St. 7,534,348 <br />077A-0745-045-06 Penske Truck Leasing Co. 10755 Bigge St. 5,854,726 <br />077A-0745-049-01 Bigge Street Investors 10901 Bigge St. 6,066,645 <br />079A-0395-006-10 Wal-Mart Bus. R.E. Trust 1919 Davis St. 11,607,979 <br />079A-0395-006-11 Monarch Ventures 1933 Davis St. 23,839,878 <br /> $131,860,789 <br />13 <br />