AgdaPkt 2008-12-15 Clsd and Spec

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III. COST OF THE AGREEMENT TO THE AGENCY (RDA) This section presents the total potential cost of the Agreement to the Agency that will be funded with redevelopment agency tax increment funds. The "net cost" of the Project after consideration of the revenues that will accrue to redevelopment funds, if any, is also evaluated. The net cost can be either an actual cost, when expenditures exceed receipts, or a net gain, when revenues created by implementation of the Agreement exceed expenditures. A. Estimated Cost to the Agency (RDA) The costs to the Agency to be funded from Redevelopment Agency's Low and Moderate Income Housing Fund is up to $250,000, comprised of up to a $159,202 "Development Grant" and up to a $90,798 "Fee Subsidy". The Housing Fund monies to be used for this transaction were generated by annual tax increment deposits, not bond proceeds. Therefore, there are no interest carry costs to the Agency associated with this transaction. B. Revenues to the Agency (RDA) The Agreement does not specify any repayment of the Agency's Development Grant or Fee Subsidy. In addition, the Agency will not receive any property tax increment revenues from the project due to the fact that it is anticipated that the project will be exempt from paying property taxes. C. Net Cost to the Agency (RDA) The net cost to the Redevelopment Agency resulting from this transaction is the difference between the Agency's costs to be funded with tax increment funds and Agency revenues. Since it is not anticipated that the Agency will receive any revenues, the Agency's net cost is the sum of the Development Grant and Fee Subsidy, or a total of up to $250.000. 6.2A Page 15 Keyser Marston Associates, Inc. C:\Documents and Settings\djones-thomas\Local Settings\Temporary Internet FlIes\OLK133\005-001.doc 12/3/2008 Page 5