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File Number: 15-730 <br />well as the California Department of Finance’s (DOF) denial of approximately $11.1 million in <br />enforceable obligations for the Joint Project Loan ($2.0 million) and capital projects ($9.1 <br />million). <br />On September 23, 2014, the Superior Court of California issued an order for the Successor <br />Agency on the issue of the $11.1 million in enforceable obligations, predominantly siding with <br />the DOF on the issue of the “claw back”. The court determined that the Successor Agency <br />was obligated to remit $2,437,273 reversing the two payments made on the Plaza Project <br />Loan in 2011. <br />On October 19, 2015, the City Council approved Resolution 2015-177 appropriating <br />$2,437,273 from the General Fund Economic Uncertainty Reserve Fund to reverse the Plaza <br />Project Loan payments made in 2011. The funds were then remitted to the Alameda County <br />Auditor-Controller and subsequently redistributed to the local taxing entities. The City, as a <br />taxing entity itself, received $321,305.46 from the redistribution. <br />On October 28, 2015, the Successor Agency received a Finding of Completion from the DOF <br />certifying that all payments that were required pursuant to the dissolution of the <br />Redevelopment Agency were made. With the approval of the Oversight Board, the Successor <br />Agency may now reinstate the Plaza Project Loan and repay the remaining amount owed to <br />the City. Approval from the Oversight Board will be requested at its January 27, 2016 <br />meeting. <br />In order for the loan to become an enforceable obligation, the Oversight Board must make a <br />finding that the loan was made for legitimate redevelopment purposes. In keeping with the <br />goals of the Plaza Project Area, improvements resulted in significant revitalization of the area, <br />and have been of benefit to all taxing entities that share in the property tax revenue, removing <br />impediments to development, eliminating adverse conditions in the project area, and <br />catalyzing private development, thus resulting in an increase in assessed valuation and <br />property tax revenue that accrues to the taxing entities. This includes projects such as the <br />West Estudillo pedestrian connection, downtown pedestrian and light improvements, the <br />downtown history walk, and the acquisition and assembly of properties within development <br />opportunity sites. <br />If approved, the Successor Agency’s debts under the loan to the City may be restored as an <br />enforceable obligation and listed on the Recognized Obligation Payment Schedule (ROPS). <br />Funds to pay the obligation to the City will be provided to the Successor Agency by the <br />Alameda County Auditor-Controller via the Redevelopment Property Tax Trust Fund and then <br />the Successor Agency can pay the City consistent with the terms of the re-entered <br />Agreement. <br />Repayment of the loan will be subject to several amended terms, per Health and Safety Code, <br />Section 34191.4: <br />·Interest rate will be recalculated from 6% to 3% from the point of inception. <br />·Payments will be made to principal first, then interest. <br />·For each ROPS period, the loan will be repaid after other enforceable obligations are <br />paid (such as capital projects on the ROPS). <br />Page 2 City of San Leandro Printed on 1/12/2016