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destinations in other communities. Bayfair's high performing tenants generate sales and foot traffic,
<br />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 improvements
<br />related to the implementation of the Marina Boulevard Auto Mall project. The 2008 bonds funded
<br />construction of the Senior Community Center, and will fund construction of the Estudillo /Callan parking
<br />garage and other capital improvements. These items and administrative costs leave very little
<br />discretionary revenue through 2014. Financial projections reveal that, unless revenues come in higher
<br />than projected, the Joint Area projects and programs will be underfunded, and cuts will need to be made.
<br />Program Funding
<br />Funding for the Redevelopment Agency's Economic Development and Public Improvement Projects in
<br />the Joint Project Area, like the other two project areas and the Affordable Housing Program, mainly
<br />comes from tax increment, a portion of the property tax revenue collected in all the redevelopment
<br />project 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 of
<br />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 />Fiscal
<br />Year
<br />AV
<br />Growth
<br />Rate
<br />Gross Tax
<br />Increment
<br />20% Housing
<br />Set -Aside
<br />Pass Through
<br />Payments
<br />General
<br />Fund Loan
<br />Bond Debt
<br />Service
<br />Available
<br />Tax
<br />Increment
<br />2009 -10
<br />3.75%
<br />7,151,361
<br />(1,264,265)
<br />(2,804,796)
<br />(797,833)
<br />(2,223,421)
<br />61,047
<br />2010 -11
<br />0.00%
<br />7,144,573
<br />(1,263,323)
<br />(2,796,675)
<br />(173,477)
<br />(2,218,896)
<br />692,203
<br />2011 -12
<br />2.00%
<br />7,349,433
<br />(1,286,070)
<br />(2,932,504)
<br />(173,477)
<br />(2,212,946)
<br />744,437
<br />2012 -13
<br />2.50%
<br />7,612,044
<br />(1,329,419)
<br />(3,093,825)
<br />(173,477)
<br />(2,205,681)
<br />809,643
<br />2013 -14
<br />2.50%
<br />7,880,854
<br />(1373,815)
<br />(3,214,986)
<br />(173,477)
<br />(2,202,041)
<br />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
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