Reso 2001-021 RDA 2001-003 - Laserfiche WebLink

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allows for property tax increases to be allocated directly to the project area, as opposed to being disbursed throughout the City and County and other taxing agencies. Under State of California Redevelopment Law, no funds can be trans- ferred from one Redevelopment Project Area to another. Therefore, no matter how many tax dollars are collected within one project area, they cannot be allocated to another. Historically, though the funds are extremely limited, Plaza 2 Redevelopment has had a slightly better capacity to fund improvements than Plaza 1 Redevelopment. Based on the income projec- tions for the Plaza 1 Redevelopment project area, future funds will only cover staff and administrative expenses, i.e. there is little expectation that any significant public expenditures will be available for Downtown improve- ments. While the tax increment financing aspect of a redevelopment project fox the Downtown may not be promising, there are other benefits of Redevel- opment Agency involvement, particularly the powers of condemnation, that can be of great benefit in effecting Downtown revitalization. In December of 1998, the eminent domain powers of Plaza 1 Redevelopment were ex- tended to 2008. The City's ability to aid in building rehabilitation, renego- tiation of land leases, and parking and circulation improvements is greatly enhanced under Redevelopment Law authority. California Redevelopment Law also allows for combining of project ar- eas, where appropriate and legally feasible. Clearly, the Plaza 1 and 2 Rede- velopment Project areas are integrally entwined, and neither has the tax in- crement financing capabilities to affect improvements in another area inde- pendently. More importantly, the market areas are substantially overlap- ping, thereby providing a potential commonality of benefit to both project areas if combined. ~ Economic Development Issues There axe number of factors instrumental in jump-starting Downtown San Leandro's economy and upgrading its retail activities. Understanding ,~ ' those factors, and the relative roles various groups play is key to affecting a more vital Downtown environment. The City's Role The City's role is crucial out not exclusive; Ciry Council and staff sup- port are essential to "telling the story" to prospective tenants of where the City is heading demographically, and in assisting retailers with City approval San Leandro Downtown Plan & Urban Design Guidelines October 2000 page 13