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<br />While tax increment funds were handled separately for Plaza 1 and Plaza 2 since inception,
<br />administering project funds became cumbersome as these two Project Areas functioned as one
<br />downtown business area. To more efficiently and effectively manage projects and programs, the two
<br />Project Areas were merged in the last Implementation Plan period. It remains an administratively
<br />complex project area because of the many sub-areas it contains, each with their different time limits and
<br />in some cases, varying pass-through requirements.
<br />Program Funding
<br />Funding for the Redevelopment Agency's Economic Development and Public Improvement Projects
<br />in the Plaza, like the other two project areas and the Affordable Housing Program, mainly comes
<br />from tax increment, a portion of the property tax revenue collected in all the redevelopment project
<br />areas. "Tax increment" consists of the taxes collected on the increase in assessed value (over and
<br />above the base year assessed value) of properties in the redevelopment areas, starting from the date
<br />of Redevelopment Project Area designation.
<br />Table 2 shows the projected tax increment for the Plaza Project Area for 2009-10 through 2013-
<br />2014. It shows what portion of these funds will go to the Affordable Housing Program (20%
<br />Housing Set-Aside) and what portion has already been committed to outstanding debt obligations. A
<br />mandatory payment to the Supplemental Educational Revenue Augmentation Fund (SERAF) is not
<br />shown below, but is included in Table S later in this section.
<br />As shown in Table 2, debt service consumes almost two-thirds of the gross tax increment received in
<br />the Plaza. The largest component of the debt service is for repayment of Tax Allocation Bonds
<br />(TABS) issued in 2002 to support capital improvements in the Plaza. Payments to a debt service
<br />escrow fund were initiated in 2009-10. Because the Plaza is projected to reach its legal cap for
<br />receiving tax increment revenue prior to the full retirement of the 2002 TABs, the Agency is setting
<br />funds aside in advance to ensure that all debt obligations can be met.
<br />Table 2. Plaza Tax Increment - 2009 Estimates
<br />
<br />Fiscal
<br />Year
<br />Gross Tax
<br />Increment 20%
<br />Housing
<br />Set-Aside Pass
<br />Through
<br />Payments
<br />General
<br />Fund Loan
<br />TAB Debt
<br />Service
<br />Debt Service
<br />Escrow Available
<br />Tax
<br />Increment
<br />2009-10 2,935,590 576,641) 239,541) (300,000) (1,345,850) (200,000) 273,558
<br />2010-11 2,947,111 (578,150) (255;806) (300,000) (1,348,538) (187,293) 277,324
<br />2011-12 2,972,585 (582,428) (272,657) (300,000) (1,348,288) (187,493) 281,719
<br />2012-13 3,026,929 (592,454) (290,254) (300,000) (1,350,903) (205,994) 287,324
<br />2013-14 3,082,303 (602,661) (308,345) (300,000) (1,351,063) (227,192) 293,042
<br />Source: City of San Leandro, Urban Analytics
<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 Plaza. The Agency can assist or guide the private sector to maintain a
<br />balanced business base with an appropriate mix of retail and office, and support new infill housing.
<br />The Agency, to the extent feasible based on limited funding sources, can upgrade or maintain the
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