Reso 1996-062 - Laserfiche WebLink

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VL CONSIDERATION RECEIVED AND REASONS '1 11 REFOR The Agency is receiving no up -front land payment for the Agency Assemblage, which is consistent with the provisions of the DDA. The present value of the balloon payment due in five (5) years to the Agency is estimated to be $340,000. The fair reuse value for the Agency assemblage is estimated at $160,000. While the consideration being paid to the Agency is less than the estimated range of value of the theoretical commercial uses that can support a higher value of ($860,000), the Agency's proposed agreement with the Auto Dealer is a fair consideration, given the reuse conditions and development costs set forth in the DDA, as determined by the reuse appraisal prepared by KMA and summarized in Section IV above. The Agency has determined that the addition of several new automobile dealerships and one used automobile facility as provided in the DDA offer the best complementary uses for other uses in the area. The Project capitalizes on regional draw created by Marina Square and the substantial public investment in the reconstruction of Marina Boulevard. The project will also provide market incentives for other auto dealers to locate on Marina Boulevard. The revitalization of the Marina Boulevard will optimize the ability to generate sales tax revenue for the City, and therefore, best serve the overall goals of the Redevelopment Plan to revitalize the area. In turn, the Agency has negotiated the subsidy terms so that the fair reuse value of the Agency Asseillulage will provide the Auto Dealer with the economic incentive to build several automobile dealership facilities in the City of San Leandro. K E Y S E R • M A R S T O N A S S O C I A T E S I N C. 19096 002.doc Page 12 •