RDA Reso 2010-004 - Laserfiche WebLink

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REDEVELOPMENT AGENCY FUNDS DESCRIPTION 19.3 The San Leandro Redevelopment Agency was formed in 1960 to finance development projects and programs to eliminate economic stagnation and physical blight. The Agency's funding source is tax increment, which is a dedicated share of the growth in property tax within redevelopment project areas. San Leandro has three active redevelopment project areas: Plaza, West San Leandro/MacArthur Boulevard and Alameda County-City of San Leandro (known as the Joint Project Area). Partnering with businesses, residents and property owners, the Redevelopment Agency provides the private sector with financial and technical assistance to eliminate barriers to investment, thus stimulating economic growth. The Mayor and City Council serve as its Board of Directors and the City Manager as its Executive Director. The Office of Business Development, a division of the Community Development Department, staffs the Redevelopment Agency with the assistance of Agency Counsel and contract technical services, manages the Agency's development projects and administers the three redevelopment plans. Other divisions of the Community Development Department assist with planning and housing programs for the Agency. The Engineering and Transportation Department helps implement the Agency's capital projects. Staff works with the Finance Department and other City departments to ensure all required state and federal reporting information is completed. Business retention, attraction and expansion activities are of benefit to the three redevelopment project areas because a healthy local economy is critical to building strong commercial and industrial areas. Since the adoption of the Economic Development Strategy in 1997, the Redevelopment Agency has identified economic development as an essential ingredient in the elimination of physical and economic blight. The Redevelopment Project Area Implementation Plan for 2004-2009 recognizes the growing role of the Agency and specifically emphasizes business development as a major objective of the Plan. For this reason, the marketing, business outreach and assistance activities of the Economic Development Agency will continue to be funded by the Redevelopment Agency and are included in the individual project area budgets for Fiscal Year 2010-2011. All three redevelopment project areas have been impacted by the mortgage banking crisis and the recession. Tax increment declined by approximately 3% between FY 2009-10 and the prior year and is anticipated be flat in 2010-11. The revenue reductions are a result of declining property sale values as well as re-assessments conducted by the County Auditor's Office, particularly in the Joint Project Area. Construction financing remains difficult for commercial and industrial projects, which has slowed reuse and new construction efforts. However, Business Development staff continues to work aggressively to maintain San Leandro's attractiveness to manufacturers and value- added industries. ,,. . +~~ ~' ", k~