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to travel to retail destinations in other communities. Bayfair's high performing tenants generate sales
<br />and foot traffic, sustaining the economics of the project area surrounding the center.
<br />The Joint Project Area's revenues are largely encumbered by debt service for 2001 Certificates of
<br />Participation and 2008 Tax Allocation Bond. The 2001 certificates predominantly funded
<br />improvements related to the implementation of the Marina Boulevard Auto Mall project. The 2008
<br />bonds funded construction of the Senior Community Center, and will fund construction of the
<br />Estudillo/Callan parking garage and other capital improvements. These items and administrative costs
<br />leave very little discretionary revenue through 2014. Financial projections reveal that, unless revenues
<br />come in higher than projected, the Joint Area projects and programs will be underfunded, and
<br />potentially eliminated.
<br />Program Funding
<br />Funding for the Redevelopment Agency's Economic Development and Public Improvement Projects
<br />in the Joint Project Area, like the other two project areas and the Affordable Housing Program,
<br />mainly comes from tax increment, a portion of the property tax revenue collected in all the
<br />redevelopment project areas. "Tax increment" consists of the taxes collected on the increase in
<br />assessed value (over and above the base year assessed value) of properties in the redevelopment
<br />areas, starting from the date of Redevelopment Project Area designation.
<br />Table 4 provides the projected tax increment for the Joint Area for 2010-2014. It also shows what
<br />portion of these funds will go to the Affordable Housing Program and what portion has already been
<br />committed to outstanding debt obligations.
<br />Table 4. Joint Area Tax Increment
<br />
<br />Fiscal
<br />Year
<br />AV Growth
<br />Rate
<br />Gross Tax
<br />Increment 20%
<br />Housing Set-
<br />Aside Pass
<br />Through
<br />Payments
<br />General Fund
<br />Loan
<br />Bond Debt
<br />Service
<br />Available Tax
<br />Increment
<br />2009-10 -3.75% 7,151,361 (1,264,265) (2,804,796) (797,833) (2,223,421) 61,047
<br />2010-11 0.00% 7,144,573 (1,263,323) (2,796,675) (173,477) (2,218,896) 692,203
<br />2011-12 2.00% 7,349,433 (1,286,070) (2,932,504) (173,477) (2,212,946) 744,437
<br />2012-13 2.50% 7,612,044 (1,329,419) (3,093,825) (173,477) (2,205,681) 809,643
<br />2013-14 2.50% 7,880,854 (1,373,815) (3,214,986) (173,477) (2,202,041) 916,536
<br />Source: City of San Leandro, Urban Analytics. All amounts omit the County share.
<br />Further financial limitations exist in the Joint Area. Existing obligations incurred in the prior
<br />Implementation Plan periods require the Agency to make regular payments to developers for projects
<br />including auto dealerships and Bayfair Center. These projects achieved significant levels of blight
<br />reduction and economic development, but limit the Agency's flexibility in coming years.
<br />Economic Development and Public Improvements Objectives
<br />The Agency's aim with regard to economic development and public improvements is to improve the
<br />economic health of the Joint Area. The Agency can assist or guide the private sector to maintain a
<br />balanced business base with an appropriate mix of retail, office, manufacturing,
<br />warehouse/wholesale, and services, thereby providing a range of employment opportunities. Support
<br />of new housing, particularly workforce housing, in appropriate locations increases economic vitality
<br />in the area by increasing demand for products and services. The Agency can upgrade or maintain the
<br />appearance of the Joint Area so that it will be more inviting to consumers and residents, stimulating
<br />increased sales and private investment in the area.
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