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CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2016 <br /> <br /> <br />NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued) <br /> <br />Owner Participation Agreements with Agency Commitment <br /> <br />The Agency entered into the following agreements which represent contingency liabilities for the Agency: <br />Ford Motor Company Owner Participation Agreement - The agreement required the Agency to make <br />annual payment equivalent to 50% of the sales tax generated above a base of $277,000 by the sale of <br />vehicles as part of the Ford Store San Leandro development. The amount due is paid over several years <br />depending on the volume of auto sales at no interest. <br /> <br />2009 San Leandro Unified School District <br /> <br />In February 2009, the City entered into a joint use agreement with the San Leandro Unified School <br />District which provides for the City use of the 9th grade gymnasium during non-school hours and the San <br />Leandro former Redevelopment Agency (Agency) agreed to provide a financial contribution to the <br />project from the Agency in the amount of $2,170,800. <br /> <br />During the fiscal year ended June 30, 2010, annual payments for the 2009-10 and 2010-11 fiscal years <br />were reduced from $327,072 to $167,072 as a consequence of the State Educational Revenue <br />Augmentation Fund requirement, consistent with the terms of the financing agreement between the <br />Agency and the school district. As of June 30, 2016 the balance of the agreement has been paid in full. <br /> <br />King Property Settlement Agreement <br /> <br />The Successor Agency of the former Redevelopment Agency of the City of San Leandro had agreements <br />with the King parties who are owners of a 3.7 acre parcel on East 14th Street which is a portion of the <br />Bayfair Shopping Center. The King had demanded payment from the Successor Agency of the City of <br />San Leandro as a guarantor of the lease payments. During the fiscal year 2013, the Successor Agency <br />entered into a settlement agreement in the amount of $7,750,000. <br /> <br />At June 30, 2016, future debt service requirements for the 2014 King Property Settlement were as follows: <br /> <br />For The Year <br /> Ending June 30 Principal <br />2017 1,500,000$ <br />2018 1,250,000 <br />2,750,000$ <br /> <br />88