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File Number: 12 -014 undertake this obligation. In carrying out this obligation, ABX1 26 limits the liability of the Successor Agency to: "the extent of the total sum of property tax revenues it receives pursuant to this part (Part 1.85) and the value of the assets transferred to it as the successor agency for a dissolved redevelopment agency." If the City elects not to serve as the "Successor Agency," the first taxing agency that submits a resolution electing to be the Successor Agency for the Redevelopment Agency would be permitted to serve in that role. Given the level of discretion that the Successor Agency will have over how to handle the Redevelopment Agency's dissolution, the City of San Leandro is the most qualified and most appropriate entity to serve as the Successor Agency. Doing so will provide the best chance of protecting Redevelopment Agency investments in ongoing projects. Technically, Health and Safety Code Section 34173(d)(1) states that the City would become the successor agency unless it elects not to serve in that function. However, for clarity, the City Attorney recommends that the City Council take an affirmative action to elect to serve in that role. In footnote 25 of the Supreme Court's decision, the Court indicated that it was extending the deadline for making the election to January 13, 2012. The related action of electing to have the City of San Leandro retain the housing assets and functions previously performed by the City of San Leandro Redevelopment Agency will allow the City to maintain control of real estate assets, such as the Casa Verde property, and oversight of loans related to the First -Time Homebuyer Program and Single Family Housing Rehabilitation Program. Although the City may not choose to maintain that ownership in perpetuity, doing so at this time provides the best opportunity to maintain control through a period of transition, thus protecting past Redevelopment Agency investments. Fiscal Impacts As the "Successor Agency" to the Redevelopment Agency of the City of San Leandro, the City would incur certain administrative costs, primarily in the form of staff time. ABx1 26 provides that a successor agency is entitled to get up to 5% of the 2011/2012 Tax Increment and 3% of the Tax Increment for each year after that, but not less than $250,000 per year, for the administrative costs. ATTACHMENTS None PREPARED BY: Jeff Kay, Business Development Analyst, Community Development City of San Leandro Page 2 Printed on 11612012