10B Action 2011 0118 - Laserfiche WebLink

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MANAGEMENT'S DISCUSSION AND ANALYSIS West San Leandro /MacArthur Boulevard Project Area • The Agency continues to work on development of a 375k sq. ft. retail center is planned for the northern half of the Kaiser Medical Center site, however, development of the retail portion of the project is currently on hold due to the economy. Agency staff will begin planning for the development of a Marina Boulevard Specific Plan to coordinate planning along a crucial connection between the Kaiser Medical Center and the shoreline. • Agency will continue work on establishment of a Business Assessment District to construct Eden Road, currently a dirt road, to improve traffic circulation in the Davis /Doolittle intersection and provide necessary access to currently blighted properties. ECONOMIC FACTORS Tax increment revenue for all project areas grew 0.1% in Fiscal Year 2009 -10. Tax increment revenue in the Plaza Project Area grew 0.7% in Fiscal Year 2009 -10. Tax increment growth in the Joint Project Area grew 1.9% in Fiscal Year 2009 -10 while growth in the West San Leandro /MacArthur Boulevard Project Area was 6.6 %. Little to no growth in tax increment revenue is projected for the next fiscal year, with a return to modest growth of approximately 2% thereafter. In Fiscal Year 2009 -10 the State required a payment of over $4.2 million in tax increment from the City of San Leandro Redevelopment Agency. That same State legislation requires an additional payment of just under $900,000 in 2010 -11. The California Redevelopment Association has appealed a court decision upholding the legality of the payment and the Agency remains hopeful that the take is again found unconstitutional. The State take decimated the Redevelopment Agency's fund balance and has negatively impacted funding of programs and projects in the short-term. Fortunately, in November 2010, California voters approved Proposition 22, entitled the "Local Taxpayer, Public Safety, and Transportation Protection Act of 2010" that amended the California Constitution to prevent the State Legislature and Governor from raiding local revenues to address the State's financial problems in the future. This important legislation will ensure the Redevelopment Agency's ability to continue to fight blight. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Agency's finances for all of its citizens, taxpayers, customers, investors and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of San Leandro, Finance Department, 835 East 14th street, San Leandro, CA 94577. 11