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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 Public Improvements Reimbursement Agreement between the City of <br /> Redwood City and the Redwood City Redevelopment Agency. <br /> Recommendation <br /> Staff recommends that the City Council and Agency Board each adopt a resolution <br /> approving and authorizing execution of a Public Improvements Reimbursement <br /> Agreement between the City of Redwood City and the Redwood City Redevelopment <br /> Agency. <br /> Discussion <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 /> Due to the uncertain future of redevelopment and the threat of losing this important <br /> source of local funding, Agency and City staff have researched and vetted strategies <br /> which will be best served to protect real property assets of the Agency from being <br /> acquired by any outside agency or interest. Faced with the Governor's proposal, staff <br /> believes it prudent to enter into a Public Improvement Reimbursement Agreement. <br /> The Redwood City Redevelopment Project Area No. 2 (Project Area) is comprised of <br /> three non - contiguous sub -areas totaling approximately 1,016 acres generally located in <br /> Page 1 <br /> S: \STAFF REPORTS \Redwood City - Staff Report for RDA Reimbursement Agreement.doc <br />