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Minutes - San Leandro City Council Meeting - March 15, 1993 Page - 21 - NEW BUSINESS (continued) Lyman Menger, President-Elect of the Southern Alameda County Association of Realtors and a broker, said his organization champions private-property rights and, as such, would oppose a Transfer Tax. He said he realizes adjacent cities are charging Transfer Taxes but asked that the City not take a "me-too" attitude as a way to get revenue. He said nearly 50% of homeowners in San Leandro are first-time homeowners, and this works a hardship on them because of down payments and very large closing costs already required. He said the Transfer Tax can discourage buyers. He said property values have declined over the last three years, and enhancements toward home ownership are needed. He said many people in Hayward and San Leandro are leaving and going to non-Charter cities. He said this is an additional reason why they might consider leaving. He said this is not a reliable revenue source and not a very large source. It is a hardship on property owners. He urged the City Council to reconsider the Transfer Tax as a revenue source. Council Member Perry asked if he was saying people would move out of San Leandro. She said her understanding is that the San Leandro selling price is significantly lower than Dublin and Pleasanton. Mr. Menger said property values in the Washington Manor area, for example, have decreased and are lower than in Hayward. Council Member Perry said she would be interested in getting his figures on this matter. Council Member Kerr asked which other cities have a Transfer Tax. Mr. Menger said Hayward is the only one in southern Alameda County. He said Berkeley, Oakland, and Piedmont all have Transfer Taxes. He said Hayward's is $4.50. Mayor Karp pointed out that 55-or-older, second-time home buyers can transfer their property taxes to their new property. Hank Deadrich, 266 Begier, said 50% of the sales in 1992 were to first- time home buyers. He said, in some offices, more than 70% were first- time home buyers in San Leandro as a result of lower prices and favorable interest rates. He said he is concerned that, when the additional tax is added, it will be difficult to negotiate the 50-50 cost split. He said the closing costs on a $200,000 house with 20% down are now in the $5,700 range, without the Transfer Tax, inspection fees, etc. He said there are many older homes in San Leandro, and we are trying to bring young people into the City. He said young people have put thousands of dollars into improvements, which have been taxed and put back on the assessment rolls. He said the Transfer Tax acts as a disincentive when compared to other cities. He said San Leandro can't be competitive.