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<br />59 <br />will reach their respective cumulative tax increment limits sooner if actual annual growth in <br />assessed property values exceeds 2%. In such instance, debt service coverage on the 2014 <br />Bonds in any year in which actual annual growth exceeds 2% would be greater than that <br />projected in Table 12 and lower in any year thereafter. Nevertheless, based on the projections <br />provided herein, the Successor Agency expects Tax Revenues from the West San <br />Leandro/MacArthur Boulevard Project Area alone to be sufficient to pay debt service on the <br />2014 Bonds. <br /> <br />Concentration of Property Ownership <br /> <br />General. Based on fiscal year 2014-15 locally assessed taxable valuations, the <br />following property owners represent significant ownership concentrations: <br /> <br /> <br />Project Area <br /> <br />Property Owner <br />% of <br />Total Value <br />% of <br />Incr. Value <br />West San Leandro/MacArthur Boulevard Project Area AMB Property Corp. 4.08% 7.12% <br />West San Leandro/MacArthur Boulevard Project Area AMB US Logistics Fund LP 4.06% 7.09% <br />West San Leandro/MacArthur Boulevard Project Area/ <br />Plaza Project Area Safeway 3.52% 6.15% <br />Plaza Project Area Creekside Plaza Partners LLC 2.81% 4.91% <br />Plaza Project Area World Savings & Loan Association 1.95% 3.41% <br />Plaza Project Area BRCP San Leandro Industrial LLC 1.90% 3.31% <br /> <br />Some of these property owners have pending assessed value appeals with respect to <br />their property in the Project Areas as previously discussed. The bankruptcy, termination of <br />operations or departure from one of the Project Areas by one of the largest property owners <br />from the Project Areas could adversely impact the availability of Tax Revenues to pay debt <br />service on the 2014 Bonds. <br /> <br />Change in Concentration. As described in “- Change in Source of Tax Revenues” <br />above, there is likely to be a period prior to the final maturity date of the 2014 Bonds during <br />which the Successor Agency will be able to pay debt service on the 2014 Bonds only from <br />property tax revenues allocated to the Successor Agency from the West San <br />Leandro/MacArthur Boulevard Project Area. <br /> <br />Four of the ten largest property taxpayers in the Project Areas for fiscal year 2014-15 are <br />located in the Plaza Project Area. Therefore, the concentration of taxable property ownership in <br />the Project Areas will significantly change prior to the final maturity date of the 2014 Bonds. <br /> <br />Reduction in Inflationary Rate <br /> <br />As described in greater detail below, Article XIIIA of the State Constitution provides that <br />the full cash value of real property used in determining taxable value may be adjusted from year <br />to year to reflect the inflationary rate, not to exceed a 2% increase for any given year, or may be <br />reduced to reflect a reduction in the consumer price index or comparable local data. Such <br />measure is computed on a calendar year basis. Because Article XIIIA limits inflationary <br />assessed value adjustments to the lesser of the actual inflationary rate or 2%, there have been <br />years in which the assessed values were adjusted by actual inflationary rates, which were less <br />than 2%. <br /> <br />Since Article XIIIA was approved, the annual adjustment for inflation has fallen below the <br />2% limitation several times; in fiscal year 2010-11, the inflationary value adjustment was