|
<br />Redevelopment Agency of the City of Redwood City
<br />Notes to Basic Financial Statements, Continued
<br />For the year ended June 30, 2008
<br />
<br />9. REDEVELOPMENT AGREEMENTS, Continued
<br />
<br />C. City Center Plaza
<br />
<br />Under the tern1S of Disposition and Development Agreements dated February 5, 1996 between the
<br />Agency and the developers, Mezes Court Associate (residential development), and J,H.R. Trust
<br />(commercial development), the Agency sold to the Developers several parcels of land and cleaned the
<br />site of toxic n1aterials, in exchange for promissory notes totaling $1,700,000, the appraised value of the
<br />land. The Developers constructed City Center Plaza which contains 81 affordable housing units, a child
<br />care facility, residential and commercial parking and 17,900 square feet of retail space. The prOlnissory
<br />note [rom Mezes Court Associate in the amount of $lA45,OOO is to be repaid from surplus revenues
<br />generated by the housing project through 2028. The note accrues interest at 3 %. The promissory note
<br />from J.H.R. Trust in the amount of $255,000 is also due in 2028, with interest accruing at 3% as well, and
<br />with payments scheduled to begin January 1, 2008. The outstanding balance at June 30, 2008 was
<br />$l,695,011.
<br />
<br />D. County of San Mateo
<br />
<br />;..\-.. :..."
<br />
<br />:.t:,o'. ;.
<br />
<br />Under the terms of the Original and First Amendment Area Agreements, after the Agency receives a
<br />cUlnulative $2 million of the County's share of tax increment in Original and First Amendment Areas,
<br />the Agency agreed to allow the County to receive 100% of the County's share of the tax increment in the
<br />:tf":.'
<br />Original and First Amendment Areas. Commencing December 14, 1990 through June 30, 2008 the
<br />County has received $14,499,666 including $1,030,521 for the year ended June 30,2008 froIn the Original
<br />and First Amendment Areas.
<br />
<br />:.-:.~~:.
<br />
<br />,...~~. J."
<br />
<br />Under the Second Plan Amendment, the Agency is to receive a cumulative $25 million of the County's
<br />share of tax increment on the Second Amendment Area. Under an agreement with the Legal Aid
<br />Society the Agency agreed to deposit the first $11. 9 million in the Low and Moderate Income Housing
<br />Fund. In fiscal year 2003-04 the amount deposited in the Low and Moderate Income Housing Fund
<br />pursuant to the Legal Aid Society .agreement was suspended pending legal review of this agreement.
<br />Once the Agency has received $25 million of the County's share of the tax increment, the Agency has
<br />agreed to pass through to the County 100% of the County's share of the remaining tax increment. As of
<br />June 30,2008, the Agency has received approximately $11,598,242 of the County's share of tax increment
<br />from the Second Amendment Area.
<br />
<br />In addition to the pass through agreement, the Agency also agreed to contribute to the cost of a County
<br />parking facility in an amount of $1,250,000. This amount has been paid in full.
<br />
<br />E. Various Governmental Agencies
<br />
<br />The Agency amended their project area in 1989 in order to expand the project area and to increase the
<br />nlaximum amount of tax increment that can be distributed to the Agency. As a result, the Agency
<br />entered into pass through agreements with various governmental agencies whereby the Agency agreed
<br />to pass through to these govenunental agencies 50% of the increase in tax increment less the amount
<br />required to be set aside for Low and Moderate Income Housing from the amendment area that would
<br />be otherwise allocated and paid to these governmental agencies. For the year ended June 30, 2008 the
<br />Agency passed through $1,509,958 to these various governmental agencies.
<br />
<br />35
<br />
|