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City of San Leandro <br />Meeting Date: March 5, 2012 <br />Staff Report <br />File Number: 12 -087 Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.G. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: Luke Sims <br />Community Development Director <br />FINANCE REVIEW: Not Applicable <br />TITLE: Staff Report for Cleanup Resolution of the City Council of the City of San <br />Leandro Electing to Receive Statutory Passthrough Payments with Respect to <br />the West San Leandro /MacArthur Boulevard Redevelopment Project Area <br />RECOMMENDATIONS <br />Staff recommends adoption of the proposed resolution electing to receive passthrough <br />payments for the West San Leandro /MacArthur Boulevard Redevelopment Project Area. <br />BACKGROUND <br />Assembly Bill 1x26, which eliminated redevelopment agencies as of February 1, 2012 and <br />defines the process of managing agency assets in the future, mandates that all taxing entities <br />that receive passthrough payments from a redevelopment agency are entitled to receive those <br />payments in the future as part of the distribution of funds previously defined as redevelopment <br />tax increment. Although it did not previously elect to receive them, the City of San Leandro is <br />entitled to a share of passthrough payments from the San Leandro Redevelopment Agency's <br />project areas. Those payments currently total slightly more than $300,000 annually. Although <br />no action is necessary to receive the passthroughs from the Joint Project Area, the <br />recommended action is needed to formally elect to receive the passthroughs from the West <br />San Leandro /MacArthur Boulevard (WSL) Redevelopment Project Area. <br />Analysis <br />Health and Safety Code Section 33607.5(a) provides that with respect to redevelopment plans <br />adopted on or after January 1, 1994, a redevelopment agency shall pay specified statutory <br />passthrough payments to affected taxing entities, including the community that formed the <br />redevelopment agency, if the community elects to receive such payments. In the case of the <br />WSL Project Area, the payment obligation is estimated to be $120,000 annually. <br />Specifically, Health and Safety Code Section 33607.5(b) provides that commencing with the <br />City of San Leandro Page 1 Printed on 212812012 <br />