AgdaPkt 2009-01-12 clsd and reg - 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, 2008 9. REDEVELOPMENT AGREEMENTS, Continued F. Irvine Apartment Community In August 1999 the Agency entered into a Disposition and Development Agreement with Irvine Apartment Communities (lAC) for a residential development of 206 units located on Maple Street in Redwood City. The developer was initially to fund all costs associated with the project, and the Agency agreed to use its power of eminent domain to acquire the two small parcels located on Maple Street (the "Hudson Property"). In early 2000, lAC requested and the Agency Board approved an amendment to the original deal. TIle Agency agreed to 'reimburse lAC for up to $196,000 of costs associated with offsite improvements related to the project. Based on this agreement, the developer funded the acquisition budget and the Agency went ahead with the acquisition. As of September 19, 2000, the Agency received an Order of Immediate Possession from the Court, the commercial and residential tenants were relocated. 10. SUBSEQUENT EVENT ,. A. Investments The Agency has pooled its cash and investments with the City in order to achieve a higher return on investment. The City participates in the San Mateo County Investment Fund and as of June 30, 2008 the City had $42,954,333 (fair value of $42,682,432) invested in the pool. On September 15, 2008 Lehman Brothers, a firm in' which the pool has some holdings, filed for bankruptcy. The pool retained the Lehman Securities but marked their value down to zero and is carrying them as a non-performing asset until the bankruptcy proceedings are completed. At that point, any proceeds would be credited back to the participant's account including the City and the Agency. Marking the value of the Lehman securities down to zero has a significant negative impact on the Agency. The Agency's share of the loss is estimated to be around $55,168. '2~