10A Action Items 2018 0402 - Laserfiche WebLink

Home

27 Project Area Agreement with County The Project Area tax increment is subject to a revenue-sharing agreement (herein and in the Indenture, as amended to date, the “Project Area Agreement”) dated as of July 1, 1993 between the Agency and the County. The Project Area Agreement sets out a formula used to determine the proportional expenditure of funds between the unincorporated County portion of the Project Area and the Successor Agency portion of the Project Area. Under the formula, expenditures in the County portion of the Project Area equaled 38% of net increment (after deducting the former 20% housing set-aside, the 33676 2% payments, the County’s property tax administration fee, Educational Revenue Augmentation Fund (“ERAF”) payments and payments made under the Pass-Through Agreements, which are described below) through fiscal year 1998-99; 45% of net increment from fiscal year 1999-00 through fiscal year 2003-04; 60% of net increment from fiscal year 2004-05 through fiscal year 2008-09; and 50% of net increment from fiscal year 2009-10 through the remaining life of the Project Area. The Project Area Agreement is distinct from the fiscal agreement between the Successor Agency and the County, described below under “–Pass Through Agreements-County Fiscal Agreement”, which governs pass-through payments to the County and its related entities from all Project Area tax increment. The Project Area Agreement was amended on July 1, 2001, designating the Alameda County Redevelopment Agency as the redevelopment authority with jurisdiction over the County portion of the Project Area and the Former Agency as the redevelopment authority with jurisdiction over the incorporated portion of the Project Area. The amended Project Area Agreement retained the formula used in the original agreement but directed the Successor Agency to pay to the County the portion of tax increment revenue designated for expenditure in the County portion of the Project Area; the Successor Agency retains the portion designated for expenditure in the incorporated portion of the Project Area. As noted above, beginning in fiscal year 2009-10, the Successor Agency receives 50% of net increment and will continue to receive 50% of net increment through the term of the 2018 Bonds. The Project Area Agreement was further amended, effective as of July 1, 2001, to specify that, because the Hayward Area Recreation and Parks District (“HARD”) is entirely within the unincorporated portion of the Project Area, payments owed to HARD pursuant to the fiscal agreement between the Successor Agency and HARD would be made out of the County’s share of Project Area tax increment. See “–Pass-Through Agreements – Hayward Area Recreation and Parks District (“HARD”) Fiscal Agreement” for additional details on this fiscal agreement and Table 6 for the impact of the allocation of tax increment in this manner. No Statutory Pass-Through (AB 1290) Payments As a project area formed prior to January 1, 1994, the Project Area is not subject to the statutory pass-through payments required for project areas formed after that date, which are commonly referred to as “AB 1290” payments. Section 33676 (2%) Payments Taxing entities are able to separately receive their share of the growth in valuation due to inflation, known as Section 33676 payments or the 2% payments, pursuant to Section 33676 of the Redevelopment Law. Section 33676 payments are distributed by the County Auditor- Controller to 8 taxing entities: the County, the Chabot-Las Positas Community College District, 132