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6.1 B - Attachment No. 2 <br /> Redevelopment Agency of the City of Redwood City <br /> Notes to Basic Financial Statements,Continued <br /> For the year ended June 30,2009 <br /> 9. REDEVELOPMENT AGREEMENTS,Continued <br /> F. Irvine Apartment Community <br /> In August 1999 the Agency entered into a Disposition and Development Agreement with Irvine <br /> Apartment Communities (IAC) for a residential development of 206 units located on Maple Street in <br /> Redwood City. The developer was initially to fund all costs associated with the project,and the Agency <br /> agreed to use its power of eminent domain to acquire the two small parcels located on Maple Street(the <br /> "Hudson Property"). In early 2000, IAC requested and the Agency Board approved an amendment to <br /> the original deal. The Agency agreed to reimburse IAC for up to $196,000 of costs associated with <br /> offsite improvements related to the project. Based on this agreement, the developer funded the <br /> acquisition budget and the Agency went ahead with the acquisition. As of September 19, 2000, the <br /> Agency received an Order of Immediate Possession from the Court, the commercial and residential <br /> tenants were relocated. <br /> 10. SUBSEQUENT EVENT <br /> A. State Takeaway <br /> Subsequent to June 30, 2009, the State of California (State) has decided to take certain funds from local <br /> governments including the Agency. These amounts are very significant to the Agency and are <br /> approximately$4.3 million. <br /> The Redevelopment Agency funds are projected to be taken over a two year period-$3.6 million in FY <br /> 2009/2010 and $0.7 million in FY 2010/2011. This decision is being litigated by California <br /> Redevelopment Association and other parties with hope that this will be considered unconstitutional as <br /> was last year's State proposed takeaway. <br /> B. Redemption of Debt <br /> On October 26, 2009, the Agency Board adopted a resolution to pay off all remaining debt associated <br /> with the 1997 Tax Allocation Refunding Bonds, which were scheduled to mature on July 15, 2011. The <br /> planned payoff date for the bonds is December 1,2009. <br /> 36 <br />