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SENT BY:SF OFFICE 1-30-96 9:47 : KEYSER MARSTONJ 5105776007:# 3/10 <br />This report outlines the salient parts of the Proposed Option Agreement (Agreement) by and between <br />the City of San Leandro Redevelopment Agency (Agency) and Shell Oil Company, a Delaware <br />corporation and Whitehurst Management Company (collectively "Shell"), (Developer) under which the <br />Developer will use the subject site for the development, construction and operation of a new fast food <br />restaurant and automobile service station. The purpose of this analysis is to determine the cost of the <br />Agreement to the Agency. <br />This report is based upon information in the proposed Agreement and is organized into the following <br />five sections: <br />1. Summary of the Proposed Agreement - This section includes a description of the <br />site, the proposed development and the major responsibilities of the Agency and the <br />Developer. <br />2. Cost of the Agreement to the Agency - This section outlines the cost of the <br />Agreement to the Agency, It presents the terms of the land conveyance to the <br />Developer by the Agency, provides a projection of property tax increment revenues <br />relating to the new development, and sets forth the net cost of the Agreement of the <br />Agency. <br />3. Estimated Value of the Interest to be Conveyed - This section summarizes the value <br />of the site to be conveyed to the Developer. <br />4. Elimination of Blight - This section includes an explanation of why the sale or lease of <br />the property will assist in the elimination of blight and the supporting facts and <br />materials. <br />5. Consideration Received and Reasons Therefore - This section describes the <br />purchase price to be paid by the Developer to the Agency. It also contains a <br />comparison of the purchase price and the fair market value at the highest and best use <br />consistent with the redevelopment plan for the interests conveyed. <br />1909610015-001.doe Pape 2 <br />