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The Redevelopment Agency entered into a Disposition and Development Agreement in 1996 to purchase three key properties and convey them to the Developer for construction of the Nissan, Kia, and Hyundai dealerships. The Agency also formed the Economic Development Agency and loaned the Developer $900,000 to assist in the acquisition of additional property for the Honda dealership. The dealership is a success and the Developer repaid the loan to the EDA in full. In 1997, the City of San Leandro adopted the S-Overlay zone establishing land use review criteria for the area along Marina Boulevard between the freeway and San Leandro Boulevard. The City recognized that the success of the auto mall might attract new businesses to the area, and created sufficient land use control to ensure compatible development along Marina. New car sales and service were the desired uses under the S-Overlay. In 1999, GM announced plans to close most of its nationwide network of training centers, including the one on Marina Boulevard. GM was interested in locating a dealership on Marina Boulevard. At the same time, the Developer had approached GM and the Agency with an interest in acquiring part of the vacant property on the Training Center site to provide additional automobile storage and parking area for the new dealerships. The Agency brokered a three -party OPA whereby GM sold the Developer part of the required vacant property. GM then sold the remaining portion of the Training Center site to another division of GM, which recently completed construction of a large dealership on the site for a Pontiac/GMC franchise. The activity on Marina Boulevard also attracted Ford Motor Company. The existing Ford franchise in San Leandro, Chovanes Ford, was sold to a larger Ford dealer and was just relocated to the former Safeway food plant site after an investment of millions of dollars in new improvements. The Agency assisted in the transaction by structuring a "land write -down." A write -down is a way of providing financial assistance to a potential property owner. The Agency closes the gap between the fair market value of the land and the land price necessary to make the transaction successful. In this case, the land cost $3 million more than was financially feasible for the transaction, so the Agency agreed to repay the Ford dealership that $3 million over the course of several years. The annual payments are calculated based on the amount of sales tax that the new Ford dealership generates above and beyond the sales tax numbers that Chovanes Ford has generated. The benefit of this transaction is that the City receives the sales tax and the Agency uses the property tax increment to pay Ford: the Agency undertakes the costs, and the City's General Fund reaps the benefit. The S-Overlay zoning district remains the primary land use tool governing this portion of the Joint Project Area; and the Agency's participation will be limited to financial assistance as necessary to make new dealerships financially feasible. The auto mall dealerships are generating new revenue, and Marina Boulevard is a bustling, attractively maintained gateway to the City. US Postal Service Facility/14500 East 14`h Street The US Postal Service desired to relocate and expand its facility on East 14t' Street across from the Bal Theater. Staff entered into an OPA with the owners of 14500 East 14t' Street for clean-up of hazardous waste on the property. The OPA provided an opportunity for the US Postal Service to secure "Polanco Immunity" from future liability resulting from any known contamination which