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0� <br />File Number: 15-573 <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />City of San Leandro <br />Meeting Date: October 19, 2015 <br />Staff Report <br />Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.H. <br />BY: David Baum <br />Finance Director <br />FINANCE REVIEW: David Baum <br />Finance Director <br />TITLE: Staff Report for Resolution Appropriating $2,437,273 from the General Fund <br />Economic Uncertainty Reserve Fund for the Purpose of Making a Required <br />Payment to the Alameda County Auditor -Controller Related to the Dissolution <br />of the San Leandro Redevelopment Agency <br />411LTA IIT, /_1:T/_1ki14N0]LTA ILTA 14kiIoi-A0[0P►1� <br />Staff recommends that the City Council approve a resolution appropriating $2,437,273 from <br />the General Fund Economic Uncertainty Reserve Fund for the Purpose of Making a Required <br />Payment to the Alameda County Auditor -Controller. This payment is required pursuant to a <br />determination made by the California Department of Finance as part of the Due Diligence <br />Review process. The payment demand was subsequently upheld by the Superior Court of the <br />State of California. <br />L:�Ld:Lr1Z�1�LL: <br />In 2002, the City of San Leandro loaned $2,887,617.44 to the Redevelopment Agency of the <br />City of San Leandro for the purposes of carrying out redevelopment activities in the Plaza <br />Project Area ("Plaza Project Loan"). The loan was memorialized in a December 5, 2002 <br />Promissory Note with an interest rate of six percent and no penalty for pre -payment. The <br />Plaza Project Loan was subsequently confirmed by Redevelopment Agency Resolution No. <br />2004-011 RDA. <br />On March 7, 2011, in response to a proposal by the State Legislature to eliminate all <br />redevelopment agencies state-wide, the Redevelopment Agency passed Resolution No. <br />2011-006 RDA, which authorized full repayment of the Plaza Project Loan. The balance due <br />at the time was $2,137,273.49. Earlier, on January 21, 2011 the Redevelopment Agency also <br />made a regularly scheduled debt service payment on this loan of $300,000, which included <br />both principal and interest. <br />In June of 2011, the State Legislature adopted Assembly Bill AB x1 26 ("AB 26"), which <br />City of San Leandro Page 1 Printed on 1011312015 <br />