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43 ______________________ * Retention Rate is the proportion of value retained after resolution of an appeal. The rate is calculated by dividing the 'Valuation After Appeal' into the 'County Valuation'. For withdrawn and denied appeals, the 'Valuation After Appeal' is the original County valuation. Data is current as of February 16, 2018. Sources: San Mateo County Assessor; Urban Analytics. As shown in Table 4, the amount of assessed valuation in dispute (the original County valuation less the applicant's opinion of value) for the pending appeals is $213.6 million. The disputed amounts will be resolved in the appeals process and some portion of this amount may be adjusted. To provide some indication of the proportion of valuation upheld on appeal, Table 4 below provides information on resolved appeals filed in previous years in the Project Area. The overall retention rate for appeals resolved during the fiscal years 2010-11 to 2017-18 is 93.8%, with approximately $1.7 billion in valuation retained out of $1.8 billion in roll valuation. An indicator of the potential exposure of Successor Agency tax increment revenue to appeals – were the County Auditor-Controller either to change its policy of deducting appeal- related tax refunds solely from supplemental revenue and not from regular tax increment or were the Assessor to continue Proposition 8 reductions on future rolls for properties granted prior-year reductions – may be seen by applying the retention rate to the amount of valuation in dispute in the pending appeal. Applying the 93.8% retention rate for resolved appeals to the approximately $475 million in total valuation for the 96 parcels with an appeal pending indicates a potential valuation reduction of $29.4 million. If the full amount of disputed valuation were granted, the reduction in valuation would be approximately $2.1 million in revenue to the RPTTF, including parcels appealed in multiple years. As noted below under "–Projected Tax Revenues and Debt Service Coverage" and in “APPENDIX B – FISCAL CONSULTANT’S REPORT" under the captions "Tax Increment Revenue Estimates" and "Tax Increment Projection," no assumptions are made regarding any potential future appeal-related adjustments to valuation of the Project Area in the projections prepared for this Official Statement and the Fiscal Consultant’s Report. No assumptions are made regarding any potential future appeal-related adjustments to Project Area valuation in the projections prepared and included in the Fiscal Consultant’s Report attached as APPENDIX B. Of the total 96 pending appeals in the Project Area, there are 2 pending appeals filed by a large property owner in the Project Area, Peterson Tractor Co. Peterson Tractor Co has two pending appeals; appeals filed by this owner in prior years did not result in a change in valuation. An appeal filed in fiscal year 2017-18 by Chill Build San Leandro is also pending. The table on the following page shows appeals filed by large property owners in the Project Area since 2013-14. 148