Reso 2013-159 - Laserfiche WebLink

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