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City of San Leandro <br />Notes to Basic Financial Statements <br />For the year ended June 30, 2012 <br /> <br /> <br />101 <br /> <br />NOTE 18 – REDEVELOPMET AGENCY DISSOLUTION AND SUCCESSOR AGENCY <br />ACTIVITIES, continued <br /> <br />H. Long-Term Debt Obligations, continued <br /> <br />Bay Fair Mall Debt with Agency Commitment <br /> <br />On June 15, 1998, the City committed $4,000,000 to renovate the Bayfair Mall. This debt with City commitment is at <br />0% interest and has installments ranging between $200,000 and $400,000 per year over a 15 year period beginning in <br />July 1998. The debt is secured and payable from Community Redevelopment Agency revenues. An adjustment was <br />made in prior years for an accelerated payment of $50,000 which is reflected in the table, leaving a debt service balance <br />of $700,000. <br /> <br />At June 30, 2012, future debt service requirements for the Bay Fair Mall Debt with City Commitment were as follows: <br /> <br />For the Year <br />Ending <br />June 30,Principal Total <br />2013 200,000$ 200,000$ <br />Total debt service 200,000$ 200,000$ <br /> <br /> <br /> <br />Owner Participation Agreements with Agency Commitment <br /> <br />The Agency entered into the following agreements which represent contingency liabilities for the Agency: <br /> <br />Ford Motor Company 2,008,747$ <br />2,008,747$ <br /> 1. Ford Motor Company Owner Participation Agreement - The agreement required the Agency to make annual <br />payment equivalent to 50% of the sales tax generated above a base of $277,000 by the sale of vehicles as part of the <br />Ford Store San Leandro development. The amount due is $2,008,747 to be paid over several years depending on the <br />volume of auto sales at no interest. <br /> <br />2. Batarse Family Trust Disposition and Development Agreement – The agreement required the Agency to make <br />annual payments equivalent to 50% of the sales tax generated by the sale of vehicles as part of the development of a <br />proposed Saturn dealership. The amount due is $332,615 to be paid over several years depending on the volume of <br />auto sales at no interest. In May 2012, the Oversight Board terminated Owner Participation Agreement between the <br />Batarse Family and the Successor Agency to the Redevelopment Agency of the City of San Leandro.