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33433 Report 1040 Davis Street DDA INTRODUCTION Page 2 of 5 May 2004 The Redevelopment Agency of the City of San Leandro owns four adjacent parcels, totaling .46 acres, on Davis Street in the Plaza Project Area. One is home to a two-story building, formerly a fire station but unoccupied for over a year, one serves as the driveway access to the building, and two are vacant and unimproved. The Agency's disposal of these properties for context-sensitive development will greatly improve the appearance of Davis Street and help generate revenue for the City and Agency. Section 33433 of the State of California Health and Safety Code governs the disposal of redevelopment agency-owned property such as these parcels on Davis Street. Agencies are required to prepare a report on the disposal that contains a copy of the proposed sale (or lease) and a summary which describes and specifies all of the following: (i) The cost of the agreement to the agency (including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the agency, plus the expected interest on any loans or bonds to finance the agreements); (ii) The estimated value of the interest to be conveyed or leased, determined at the highest and best uses permitted under the plan; (iii) The estimated value of the interest to be conveyed or leased, determined at the use and with the conditions, covenants, and development costs required by the sale (using the purchase price). If the sale price is less than the fair market value of the interest to be conveyed, determined at the highest and best use consistent with the redevelopment plan, then the agency shall provide as part of the summary an explanation of the reasons for the difference. (iv) An explanation of why the sale or lease of the property will assist in the elimination of blight, with reference to all supporting facts and materials relied upon in making this explanation. All this information is covered in the following pages of this report, which has been prepared by Redevelopment Agency staff: The report was made available to the public at the time of publication of the first notice of the public hearing to review it and the Disposition and Development Agreement (DDA) on which it is based. SUMMARY OF COST OF AGREEMENT TO THE AGENCY The Agreement has no cost to the Agency, other than minimal staff and counsel time. The land acquisition costs for two parcels previously owned by the City were incurred under a previously approved agreement (Agreement to Convey Property and To Deliver Proceeds From Future Disposition between the City and the Agency approved on September 16, 2003), and there will be no remediation or clearance costs attributable to the Agency under any agreement. The Agency has no responsibilities or performance obligations other than the preparation of transaction documents including this report and the Agreement, and completion of transfer