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REPORT <br /> To the Honorable Mayor /Chair and City Council/ <br /> Redevelopment Agency (Acting Jointly) <br /> From the City Manager /Executive Director <br /> March 7, 2011 <br /> Subject <br /> Proposed Option Agreement between the City and the Agency providing the City an <br /> option to acquire certain agency -owned real property assets. <br /> Recommendation <br /> By resolution: <br /> 1. Staff recommends that the Agency Board approve and authorize execution of the <br /> attached Option Agreement between the Agency and the City, granting to the <br /> City the option to acquire certain Agency -owned real property assets. <br /> 2. Staff recommends that the City Council approve and authorize execution of the <br /> attached Option Agreement between the Agency and the City, granting to the <br /> City the option to acquire certain Agency -owned real property assets. <br /> Background <br /> In January of 2011, Governor Brown proposed, as part of his State Budget, that <br /> legislation be enacted to abolish redevelopment agencies in California. On February <br /> 23, 2011, the Department of Finance proposed legislation fleshing out the details of the <br /> Governor's proposal. If enacted, the Governor's proposal would eliminate <br /> redevelopment agencies and essentially take their future tax increment and redirect it to <br /> other taxing entities after satisfying agencies' existing obligations. If the Governor's <br /> proposal to terminate redevelopment agencies is approved, agencies will no longer <br /> have the ability to fund capital improvement projects, developments and programs that <br /> create jobs, eliminate blight and create affordable housing. The Governor's proposal <br /> and the Department of Finance legislation are still simply proposals, almost certain to be <br /> changed in minor or major ways over the next weeks and months. <br /> However, due to the uncertain future of redevelopment, Agency and City staff have <br /> researched and vetted strategies which will be best served to protect real property <br /> assets of the Agency from being acquired by any outside agency or interest. <br /> Currently, the Agency owns 6 properties in and around the Redwood City Project Area, <br /> as identified on Exhibit A of the attached Option Agreement. <br /> Page 1 <br /> S: \STAFF REPORTS \Redwood City Staff Report for RDA Option Agreement(2).doc <br />