10A Action 2014 0902 - Laserfiche WebLink

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42 Low and Moderate Income Housing Set-Aside As described in “SECURITY FOR THE 2014 BONDS - Housing Set-Aside,” the Dissolution Act eliminated the distinction between Housing Set-Aside and non-Housing Set- Aside property tax revenues. The housing fund into which these set-aside amounts were formerly deposited has been eliminated and any unencumbered amounts remaining in that fund have been paid to the County and these funds have been allocated to the taxing entities within the Project Areas. As a result, and because the Successor Agency has no obligations that are payable from Housing Set-Aside, the former Housing Set-Aside is available to pay debt service on the 2014 Bonds; the projection of Tax Revenues prepared by the Fiscal Consultant and set forth in the section of this Official Statement entitled “THE PROJECT AREAS – Projected Available Net Tax Increment and Estimated Debt Service Coverage,” assumes the availability of the former Housing Set-Aside for this purpose. Major Taxable Property Owners Plaza Project Area. The following table lists the 10 largest taxable property owners within the Plaza Project Area for fiscal year 2014-15. Based on fiscal year 2014-15 locally assessed taxable valuations, the top 10 taxable property owners in the Plaza Project Area represent approximately 46.5% of the total Plaza Project Area taxable value of $363,391,952 and 50% of the fiscal year 2014-15 incremental value of $340,123,058. The Fiscal Consultant reports that Creekside Plaza Partners LLC and certain of its affiliates had appeals of assessed values pending as of June 30, 2014 relating to fiscal years 2011-12, 2012-13 and 2013-14 with respect to property with an assessed value totaling approximately $38.5 million. According to the Fiscal Consultant, Creekside Plaza Partners LLC’s opinion of value regarding such property totaled approximately $29.2 million; representing a maximum potential reduction of approximately $9.3 million. The Fiscal Consultant further reports that Long Drug Stores Inc. had an appeal of assessed value pending as of June 30, 2014 relating to fiscal year 2012-13 with respect to property with an assessed value of approximately $6.8 million. According to the Fiscal Consultant, Long Drug Stores Inc.’s opinion of value regarding such property totaled approximately $3.4 million; representing a maximum potential reduction of approximately $3.4 million. However, as discussed below in “-Appeals of Assessed Values; Proposition 8,” the Fiscal Consultant further reports that over the past seven years, appeals of assessed values have resulted in a reduction on average of 7%. Based on the Fiscal Consultants report, the Successor Agency anticipates that such appeals will result in an aggregate loss of approximately $3.2 million in assessed value within the Plaza Project Area in fiscal year 2014-15 or a loss of tax increment revenue of approximately $32,000. The Fiscal Consultant's projections of tax increment available to pay debt service on the 2014 Bonds do not take such potential reductions into account.