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File Number: 15-573 <br />the $9.1 million in capital projects in January. <br />However, the Successor Agency was not successful in fighting the "claw back" demand. This <br />is consistent with the outcome for several other cities that were in similar situations. Given that <br />the Successor Agency exhausted its options for disputing this determination, and that it <br />succeeded in most of its other litigation with the State, staff recommends appropriating <br />funding to make the $2,437,273 payment at this time. <br />Upon remittance of this payment, the Successor Agency will be eligible to receive a Finding of <br />Completion from the DOF. A Finding of Completion is a required prerequisite for seeking <br />approval of a Long Range Property Management Plan. The Property Management Plan will in <br />turn enable the Successor Agency to make its real estate assets available for sale and <br />development. The status of these properties has been in limbo for the past four years in spite <br />of strong interest from the development community. Additionally, the Finding of Completion <br />will enable the Successor Agency to seek approval to spend so-called "stranded bond <br />proceeds." The Successor Agency presently has over $2 million in proceeds from a 2008 <br />bond issuance that could be spent for qualified capital projects in the Joint Project Area. <br />Once payment is made on the $2,437,273 demand, the funds will be redistributed by the <br />County Auditor -Controller to the local taxing entities. As a taxing entity itself, the City will <br />receive a portion of this amount, proportionate to its share of local property tax revenues. Staff <br />estimates that the City will receive approximately 12 percent of the payment, or $290,000. <br />Previous Actions <br />On June 21, 2004 the Redevelopment Agency passed Resolution No. 2004-011 <br />confirming the loan from the City General Fund to the Plaza Project Area <br />On March 7, 2011 the Redevelopment Agency passed Resolution No. 2011-006 <br />appropriating funding to pay the full remaining balance on the Plaza Project Loan of <br />$2,137,273.49 <br />Fiscal Impacts <br />Remittance of the full DDR payment demand will cost $2,437,273, which requires increasing <br />the FY 2015-16 Budget by the same amount and will be funded by a new appropriation of <br />funds from the General Fund Economic Uncertainty Reserve Fund. The City will subsequently <br />receive $290,000 in revenue from the redistribution of these funds. <br />Budget Authority <br />$2,437,273 from the General Fund Economic Uncertainty Reserve Fund is available. <br />ATTACHMENTS <br />Attachments to Staff Report <br />• May 14, 2015 Letter from Department of Finance Regarding Reentered Agreements <br />• June 23, 2015 Revised Due Diligence Review Letter from the Department of Finance <br />City of San Leandro Page 3 Printed on 10113/2015 <br />