8D Consent Calendar 2019 0603 - Laserfiche WebLink

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CITY OF SAN LEANDRO NOTES TO BASIC FINANCIAL STATEMENTS For The Year Ended June 30, 2018 I NOTE 16 -SUCCESSOR AGENCY ACTMTIES (Continued) Owner Participation Agreements with Agency Commitment The Agency entered into the following agreements which represent contingency liabilities for the Agency: Ford Motor Company Owner Participation Agreement The agreement required the Agency to make annual payment equivalent to 50% of the sales tax generated above a base of $277,000 by the sale of vehicles as part of the Ford Store San Leandro development. The amount due is paid over several years depending on the volume of auto sales at no interest. King Property Settlement Agreement The Successor Agency of the former Redevelopment Agency of the City of San Leandro had agreements with the King parties who are owners of a 3.7 acre parcel on East 14th Street which is a portion of the Bayfair Shopping Center. The King had demanded payment from the Successor Agency of the City of San Leandro as a guarantor of the lease payments. During the fiscal year 2013, the Successor Agency entered into a settlement agreement in the amount of $7,750,000. During fiscal year 2018 the City made the final installment payment. HUD 108 Guarantee Notes In 2000, the City received a $1,000,000 20-year federal loan from Housing and Urban Development (HUD 108 Guarantor loan), at an interest rate of 5.6% to finance the acquisition and construction of affordable housing for seniors within the City of San Leandro. The loan is secured and payable from the Agency's 20% Housing Set-Aside Fund. The debt was assumed by the Successor Agency. Future debt service payments for the HUD 108 Guarantee loan were as follows: For The Year Ending June 30 Principal Interest Total 2019 $ 63,000 $ 2,798 $ 65,798 2020 55,000 908 55,908 $ 118,000 $ 3,706 $ 121,706 I NOTE 17 -SUBSEQUENT EVENT On December 3, 2018, the City Council of the City and the Board of Directors of the San Leandro Public Financing Authority approved the issuance, by the Authority, of lease revenue bonds in the amount of $18,905,000 for the purposes of financing certain capital improvement projects of the City, anticipated to consist of improvements to the Police Headquarters and South Office Building, the Mulford-Marina Branch Library, Manor Park Competition Pool, Farrelly Pool, and Casa Peralta. The 2018 Lease Revenue Bonds bear interest rates ranging from 3.5% to 5.0% and are payable semiannually on each May 1 and November 1. Principal payments are payable annually on November 1. 91 556