2A Business 2011 0117 - Laserfiche WebLink

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2 January 17, 201 1 BACKGROUND The California Governor proposed a budget to disband redevelopment agencies as of July 1, 2011, and use tax increment to fund state obligations. Legislative efforts are underway to immediately prohibit redevelopment agencies from entering into new contracts and obligations. This staff report outlines Agency projects that have been previously identified for tax increment funding. The purpose of the proposed Cooperative Agreement is to contractually bind the Agency to fund and support specified projects outlined in the staff report in order to protect these funds from being taken by the state. The specified projects and staffing to support the projects would be funded with Redevelopment tax increment funds from the West San Leandro - MacArthur Boulevard (West San Leandro) and Plaza Project Areas. If the California Legislature and the Governor disband redevelopment agencies, tax increment would not be available to fund these projects. Given that the City and /or Agency has already made a substantial investment, described more fully below, in each of these projects, failure to complete them would negatively impact the value of the previous investment and impede ongoing efforts to eliminate blight. Section 33445 of the California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) (the "Redevelopment Law ") requires that a redevelopment agency may, with the consent of the legislative body, pay for all or a portion of the value of land for and the cost of the installation and construction of public improvements located within a project area if the Agency and the legislative body determine that: 1) The acquisition of land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned are of benefit to the project area by helping to eliminate blight within the project area or providing housing for low - or moderate - income persons; and 2) No other reasonable means of financing the acquisition of the land or installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; 3) The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the implementation plan adopted pursuant to Section 33490; Section 33220(a) of the Redevelopment Law provides that, for the purpose of aiding and cooperating in the Redevelopment Plans, the City, upon the terms and with or without consideration as it determines, may aid and assist the Agency with redevelopment projects by entering into an agreement with the Agency. ANALYSIS Redevelopment Law, Section 33445, Findings When Redevelopment Agency funds are used to fund public improvements either within or adjacent to a redevelopment project area, California Redevelopment Law requires that: