AgdaPkt 2007-01-08 - Laserfiche WebLink

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Redevelopment Agency of the City of Redwood City Notes to Basic Financial Statements, Continued For the year ended June 30, 2006 9. REDEVELOPMENT AGREEMENTS, Continued The Agency has agreements termed pass-through with government entities. These agreements require the Agency to pass through to these entities a portion of the property tax increases it collects, representing the increases these entities would have expected to collect if the Agency had not been formed. All these agreements are described below: A. Sequoia Station Under the terms of a 1990 Disposition and Development Agreement, the Agency assisted the developer of the Sequoia Station Retail Center in acquiring the land on which this 160,000 square foot retail center was constructed at a cost to the developer of approximately $31,000,000. The City and the Agency are assisting in the financing of the project by remitting to the developer a portion of the sales and the net incremental property taxes it receives from the Sequoia Station Retail Center up to a maximum of $300,000 per year for fifteen years, commencing January 1995. The balance as of June 30, 2006 is $900,000. This obligation will be fully repaid by June 30, 2009. B. Wyndham Place Under the terms of a Disposition and Development Agreement dated January 10, 1995 between the Agency and the Developer, Butler Stellar Corporation, the Agency assisted the Developer in the remediation of environmental hazards and the acquisition of land. The Developer agreed to construct Wyndham Place, a -"15 unit housing complex for low and moderate income citizens. The Agency contributed $1,968,111 to the project and land valued at $301,356, which previously was held as land held for redevelopment. During FY 05/06, there was no resale or change in property owners at Wyndham Place. In September 2000, deferred payments became fully amortized and buyers started to make principal payments on their loans. $103,906 was received as of June 30, 2006 in loan repayments to the Agency. C. City Center Plaza Under the terms of Disposition and Development Agreements dated February 5, 1996 between the Agency and the developers, Mezes Court Associate (residential development), and J.H.R. Trust (commercial development), the Agency sold to the Developers several parcels of land and cleaned the site of toxic materials, in exchange for promissory notes totaling $1,700,000, the appraised value of the land. The Developers constructed City Center Plaza which contains 81 affordable housing units, a child care facility, residential and commercial parking and 17,900 square feet of retail space. The promissory note from Mezes Court Associate in the amount of $1,445,000 is to be repaid through 2028, from surplus revenues generated by the housing project, the note accrues interest at 3%. The promissory note from J.H.R. Trust in the amount of $255,000 is also due in 2028, with interest accruing at 3% as well, and with payments scheduled to begin January 1, 2011. 33