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41 City of San Leandro | Economic Development Initiatives and Work Plan | December 2013 <br /> <br />Initiative #9: Successful Completion of Redevelopment Agency Unwinding <br />The elimination of the San Leandro Redevelopment Agency on February 1, 2012 began a <br />process that will ultimately cost San Leandro more than $10 million in annual funds . <br />Additionally, the process of unwinding the affairs of the Agency has been an extremely complex <br />process, fraught with legal disputes, changing laws and regulations, and general uncertainty. <br />Unfortunately, the process of winding down redevelopment and managing the affairs of the <br />Successor Agency to the Redevelopment Agency has required a substantial share of San <br />Leandro’s business development staff resources. This process will continue for several years , <br />although the time commitment is expected to subside considerably beginning in 2014. <br />Ongoing Activities <br />Bi-Annual ROPS – Consistent with State law, enforceable obligations of the former <br />Redevelopment Agency can be paid using funds from the Redevelopment Property Tax Trust <br />Fund, the pool of property tax revenue that former went to the Agency. Enforceable obligations <br />include bond debt, contractual obligations, and legal settlements. Every six months, the <br />Successor Agency prepares a ROPS detailing all projected enforceable obligation payments due <br />for the upcoming period. The ROPS is subject to review by the Successor Agency Oversight <br />Board and the California Department of Finance (DOF). <br />Accomplishments To-Date: Thus far, the City has prepared a ROPS for each six-month period <br />beginning in February 1, 2012. <br /> <br />Resolve Disputes Over BRIDGE Housing and General Fund Loans – Several disputes <br />have arisen between successor agencies in California and the DOF. Two very significant issues <br />for San Leandro relate to The Alameda, a planned affordable housing project being developed <br />by BRIDGE Housing. Although the DOF recognizes the Agency’s $9.1 million loan agreement <br />with BRIDGE as an enforceable obligation, they have demanded that the Successor Agency <br />remit a $3.9 million fund balance reserved for this project. In an additional dispute, the State <br />has consistently refused to recognize two loans made by the City of San Leandro to the San <br />Leandro Redevelopment Agency in 2004. <br />Accomplishments To-Date: <br /> The Successor Agency filed a legal action against the State in March 2013, seeking to <br />overturn a State demand for $3.9 million that had been allocated to the BRIDGE project.