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the northern section of the City. The Project Area includes the City's downtown, marina, and seaport areas. The Agency's Five Year Implementation Plan (2010 -2014) includes specifically or by reference the public improvements described in Exhibit 1 of the Public Improvements Reimbursement Agreement (Attachment No. 3). The Implementation Plan states that the Redevelopment Plan's goals and objectives serve as a guide to the five year redevelopment program goals which includes: to provide public improvements in order to support redevelopment in the Project Area. Pursuant to Section 33220 of the California Redevelopment Law (Health and Safety Code Section 33000 et seq., "CRL "), certain public bodies, including the City, may aid and cooperate in the planning, undertaking, construction or operation of redevelopment projects. The City has previously utilized Agency funding to complete public improvements, and the Agency has utilized City processes and City staff in conjunction with the completion of Agency projects, programs and administration. Staff has explored potential alternative funding sources and has determined that, due to economic and political factors, there is no source of funds reasonably available to the City to contribute toward projects. City general fund revenues are not available because they are committed for the provision of essential City services, including police and fire. As such, staff has prepared a Public Improvements Reimbursement Agreement (Attachment No. 3) whereby the City will agree to carry out public improvements to fulfill the goals and objectives of the Redevelopment Plan and Five Year Implementation Plan. Adoption of the recommended resolutions will allow the Agency to obligate both existing Agency funds and future property tax increment funds for payment to the City to reimburse the City for the costs of carrying out the contemplated public improvements. The Public Improvements Reimbursement Agreement commits both existing Agency funds and future tax increment funds for reimbursement payments to the City. Alternatives 1. The Council and Agency could elect not to approve the resolutions and thereby face the potential loss of current and future property tax increment revenues that are not subject to contractual obligations. 2. The Council and Agency could delay consideration of the resolutions and provide additional or different direction to staff, which could result in unknown consequences depending on when and how the legislature approves the State Budget including elimination of redevelopment agencies Fiscal Impact The Public Improvements Reimbursement Agreement would encumber existing and future tax increment from the Project Area to cover the costs of the public improvement projects contemplated by the Agreement. Page 2 S: \STAFF REPORTS \Redwood City - Staff Report for RDA Reimbursement Agreement.doc