|
projects including auto dealerships, a hotel, and Bayfair Mall. These projects achieved
<br />significant levels of blight reduction and economic development, but now limit the Agency's
<br />flexibility in coming years.
<br />The balance of the 2001 COPS funds a portion of the total of the developer payments in 2004-05.
<br />Table 5's "available" tax increment left after the existing obligations is not currently
<br />programmed because of the economic uncertainty at the State level, as well as the uncertainties
<br />built into the structure of the auto mall-related payments. Three of them area "sales tax rebate",
<br />paid with tax increment, of an amount based on some or all of the sales tax generated by the
<br />dealership at the site. As these are multi-year agreements, it is impossible to pinpoint the amount
<br />of a payment in a particular year. The figures are estimates based on past performance.
<br />As Table 5 makes clear, the Agency, using the conservative (high) estimate of the dealership
<br />payments, regrettably will not be in a position to initiate major projects in the JPA in this
<br />Implementation Plan period. The tax increment sharing shift in favor of the County, the existing
<br />obligations in the project area, and the State-imposed ERAF payment make new major
<br />redevelopment projects appear infeasible at least through 2009.
<br />TahlP 5_ .Tnint Prniect Area Funds Allocation
<br />Fiscal
<br />Year Net Tax
<br />Increment COPS Balance Pre-Existing
<br />OPAIDDA
<br />Obli ations Adnun City Loan
<br />Payment Available/
<br />{Deficit}
<br />2004105 $530,000 $450,000 $660,000 $160,000 $260,000 $ (100,000)
<br />2005106 $570,000 $b70,000 $160,000 $260,000 $ {520,000)
<br />200b/07 $1,030,000 $770,000 $170,000 $260,000 $ {170,000}
<br />2007108 $1,070,000 $800,000 $170,000 $260,000 $ (160,000)
<br />2008109 $1,11D,OD0 $820,000 $180,000 $260,000 $ (150,000)
<br />Source: City of San Lenndro Redevelopment Agency.
<br />Although the net tax increment is down, this unfortunately does not translate into automatically
<br />lower administrative costs because of the challenges in jointly administering a project area with
<br />another agency. The SLRDA is also burdened with the responsibility of acting as the fiscal
<br />agent for both parts of the project area, even after the "divorce" in 2001. The payment to the
<br />City for prior advances may be waived annually at the discretion of the City Manager/Executive
<br />Director, who also has the authority to make the ERAF payment from another project area if
<br />necessary.
<br />Notwithstanding these limitations, the Agency's aim with regard to economic development and
<br />public improvements is to improve the economic health of the Joint Project Area. Specific
<br />proposed programs and initiatives to undertake over the next five years as funding becomes
<br />available, in pursuit of this objeckive, follow.
<br />Econanciie Development Objective: Improve the economic health of the Joint Project Area by
<br />assisting the private sector to maintain a balanced business base with an appropriate mix of retail,
<br />manufacturing, warehouse/wholesale, and services, with a range of employment opportunities;
<br />support new housing, particularly workforce housing, in appropriate locations to increase
<br />demand for products and services available in the project area.
<br />2004-2009 Implementation Plan
<br />Page 9
<br />
|