AgdaPkt 2003-07-28 - Laserfiche WebLink

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�5.A -so It can be expected that one or more of such conditions may occur and may result in damage to improvements of varying seriousness, that the damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost or because repair or replacement will not facili±3tA habitability or other use, or because other considerations preclude such repair or replacement. UnLre: any of these circumstances, the value of the Taxable Parcels may well depreciate or disappear. Seismic Conditions. The District, like all California communities, may be subject to unpredictable seismic activity. The occurrence of seismic activity in the District could result in substantial damage to properties in the District which, in turn, could substantially reduce the value of such properties and could affect the ability or willingness of the property owners to pay their Special Taxes. Any major damage to structures as a result of seismic activity could result in greater reliance on undeveloped property in the payment of Special Taxes. In addition, the District is situated on parcels that were once used as a landfill. This could contribute to increased settling and movement in the event of an earthquake. Flooding. The Redwood Shores development is surrounded by a perimeter levee system. According to the City, the crest of some levee reaches adjacent to areas not yet developed ranges from approximately two feet to a few tenths of a foot lower than the FEMA 100 -year flood protection standard of 9.5 feet above mean sea level. Although the City is currently improving sub - standard reaches of the levee perimeter system to comply with the FEMA 100 -year flood protection standard, certain portions of the levee that have settled may remain a few tenths of a foot lower than the FEMA 100 -year flood protection standard. Should a 100 -year tide event occur, the tide would overflow those reaches lower than the FEMA 100 -year flood protection standard. However, due to the short duration of that crest, flooding would be limited and shallow, provided that the levees themselves do not fail from the overtopping. Legal Requirements. Other events which may affect the value of a Taxable Parcel in the District include changes in the law or application of the law. Such changes may include, without limitation, local growth control initiatives, local utility connection moratoriums and local application of statewide tax and governmental spending limitation measures. Risks Associated with Commercial Real Estate Properties Dependence on Tenants. The ability of certain property owners within the District to pay the Special Taxes which will be levied on their property to pay debt service on the Bonds may depend primarily on the ability of their tenants to meet their financial obligations under their leases. In the event of defaults by tenants, delays may be experienced in enforcing rights and substantial costs may be incurred in protecting the property owner's investment. Furthermore, at an y time, a tenant could seek protection under bankruptcy laws, which could result in the termination of the tenant's lease and an interruption or loss of rental income. The bankruptcy of a major tenant, followed by the closing of its business or the leasing of its space to a different tenant or for a different use, could adversely affect the desirability of the District as a location and result in a decrease in consumer traffic and sales income which would adversely affect the ability of the other tenants to meet their obligations under their leases. Tenant Lease Expiration and Reletting of Space. No assurance can be given that tenants whose leases expire will renew their leases or that replacement tenants will be found. Consequently, there is a risk that expired leases may not be renewed, that the space may not be relet and that the terms of renewal or reletting (including the cost of required renovations or concessions to tenants) may be less favorable than under expired leases. The occurrence of any, or a combination, of these factors would have an adverse effect on the revenues which will be available to the property owner for the payment of Special Taxes. -33-