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ALTERNATIVES <br />The Board could choose to not remit the $10.3 million DDR obligation as directed by the <br />State DOF and forego the opportunity for a finding of completion and the benefits noted <br />above. <br /> <br />The Board could direct that staff seek to enter into an installment agreement with the <br />DOF rather than paying the amount in full. While this is allowed under SB107, based on <br />the experience of other jurisdiction, it is virtually certain that the DOF would insist that <br />the payment be made in full at this time because the Housing Successor does have the <br />funds. If staff were to pursue such an agreement, it would need to be drafted and <br />executed by the December 31, 2015 deadline. <br /> <br />FISCAL IMPACT <br /> <br />Making the DDR obligation payment <br />The City has reserved the $10,272,916 encumbered pursuant to the agreement with the <br />Legal Aid Society in the Housing Legal Aid Society Fund and therefore has sufficient <br />funds to remit the DDR obligation as payment to the County Auditor-Controller. <br /> <br />As a taxing entity, the City of Redwood City will receive its redevelopment area property <br />tax share (about 24.5% which amounts to about $2.5 million) when the DDR obligation <br />is distributed. <br /> <br />Receiving a finding of completion <br />With a finding of completion, the City will be able to seek repayment of its January 2005 <br />loan to the RDA in the amount of $2,269,543 plus interest. This will be repaid to the <br />Capital Outlay Fund, which was the source of the loan, after a 20% set aside into the <br />Low and Moderate Income Housing Asset Fund, as required by SB107. The finding of <br />completion will also enable repayment of $1,687,703 in SERAF funds to the Low and <br />Moderate Income Housing Asset Fund. <br /> <br />Potential return of the DDR obligation payment <br />If the City prevails in its litigation with the State, the repayment of the funds paid by the <br />SA as a DDR obligation will be placed on the ROPS as an obligation to be funded out of <br />RPTTF. This would reduce the RPTTF distribution to the City of Redwood City and <br />other taxing entities, commensurate with the amount each entity received when the <br />DDR obligation was initially distributed. <br /> <br />The repaid funds would be returned to the Low and Moderate Income Asset Fund, <br />which would enable the City to use these funds for housing purposes in accordance <br />with the Legal Aid Society agreement. It is expected that Assessed Value in the project <br />area is sufficient to cover annual ROPS obligations and the full repayment of the DDR <br />obligation within one to two annual ROPS cycle. <br /> <br /> <br /> <br />6.3.B. - Page 4