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City of San Leandro <br />Meeting Date: May 7, 2012 <br />Staff Report <br />File Number: 12 -211 Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.E. <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 Resolutions of the City of San Leandro Acting in Its Capacity <br />as the Successor Agency to the Redevelopment Agency and the City of San <br />Leandro Authorizing Execution of an Amended and Restated Promissory Note <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council of the City of San Leandro and the City Council, <br />serving in its capacity as the Successor Agency to the Redevelopment Agency, approve <br />Resolutions Re- Entering into an Amended and Restated Promissory Note, thereby <br />re- affirming a 2004 loan between the City and the Redevelopment Agency. <br />BACKGROUND <br />On April 8, 2004, the Redevelopment Agency of the City of San Leandro (Agency) executed a <br />Promissory Note to acknowledge a loan of $4,372,774 from the City to the City of San <br />Leandro - Alameda County (Joint) Redevelopment Project Area. That loan was subsequently <br />memorialized via Agency Resolution 2004 -011 RDA, approved on June 21, 2004. At the time <br />of the Agency's dissolution on February 1, 2012, the balance on this loan was $2,040,767.68 <br />and that amount was added to the Agency's Enforceable Obligation Payment Schedule <br />(EOPS) and Recognized Obligation Payment Schedule (ROPS). <br />This loan was made to advance redevelopment projects, most particularly the development of <br />the San Leandro Automall. The interest rate was set at 6 percent per annum. Based on the <br />most current debt service schedule, annual payments of $173,477.05 were owed to the City <br />through 2032. <br />After the approval of the ROPS by the City Council (serving as Successor Agency) on April 2, <br />2012 and the Successor Agency Oversight Board on April 6, 2012, the California Department <br />of Finance (DOF) exercised its right to conduct a review of the list of Enforceable Obligations. <br />Upon completion of that review, the DOF informed the City that it did not consider some items <br />to be enforceable because, with very limited exceptions, Assembly Bill x1 26 does not <br />City of San Leandro Page 1 Printed on 51112012 <br />