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q. A - 3q _ Table 4 REDEVELOPMENT AGENCY OF THE CITY OF REDWOOD CITY Redevelopment Project Area No. 2 Redevelopment Plan Lbnits Limit Original First Seco7dArneodment Area Amendment Area Area Debt Establishment 01/01/2004 06/20 /2005 01/18/2010 Plan Effectiveness 08 /19/2022 06/20/2025 01/18/2028 Tax Increment Receipt 08 /19/2032 06/20/2035 01/18/2038 Outstanding Bond Debt Limit $119 million combined Cumulative Tax Increment $398 million combined The Agency reports that it has received $49.4 million in cumulative gross tax increment for the Project Area through fiscal year 2002 -03. The Fiscal Consultant has estimated in the Fiscal Consultant Report that, based on 2% annual growth in assessed value, the Agency will not reach the tax increment limit prior to the last date to receive tax increment in the Project Area. In the Indenture, the Agency covenants that it will not enter into any obligation or make any expenditure payable from taxes allocated to the Agency which, together with payments theretofore made or to be made with respect to other obligations (including, but not limited to, the Bonds) previously entered into by the Agency, would exceed the then - effective Plan Limit on the amount of taxes which can be allocated to the Agency pursuant to Section 33333.4 of the Law and the Redevelopment Plan. The Agency shall annually certify, within ninety (90) days following the end of each fiscal year, that the sum of (1) all Tax Revenues allocated to the Agency on behalf of the Project Area to the end of such fiscal year, and (2) debt service on all Outstanding obligations of the Agency, is less than 90% of the Plan Limit. If the sum is greater than or equal to 90% of the Plan Limit, all subsequent Tax Revenues not otherwise pledged for payment of Debt Service on Outstanding obligations of the Agency shall be deposited in an escrow with the Trustee to be applied annually, at the earliest possible dates, to the optional redemption of the Bonds and Parity Bonds until no Bonds or Parity Bonds remain Outstanding. The funds in such escrow can only be used to pay such Debt Service. Tax Revenues may be released from the escrow if an Independent Certified Public Accountant verifies that the remaining escrowed funds will be sufficient to pay Debt Service on the Bonds after the release. Amounts on deposit in such the escrow shall be invested in Federal Securities. Senate Bill 211. The California Legislature recently enacted SB 211, Chapter 741, Statutes 2001, effective January 1, 2002 ( "SB 211 "). SB 211 provides, among other things, that the limitation on incurring indebtedness contained in a redevelopment plan adopted prior to January 1, 1994, may be deleted by ordinance of the legislative body. SB 211 also authorizes the amendment of a redevelopment plan adopted prior to January 1, 1994, in order to extend for not more than 10 years the effectiveness of the redevelopment plan and the time to receive tax increment revenues and to pay indebtedness. Any such extension must meet certain specified requirements, including the requirement that the redevelopment agency establish the existence of both physical and economic blight within a specified geographical area of the redevelopment project and that any additional tax increment revenues received by the redevelopment agency because of the extension be used solely within the designated blighted area. SB 211 authorizes any affected taxing entity, the Department of Finance, or the Department of Housing and Community Development to request the Attorney General to participate in the proceedings to effect such extensions. It also would authorize the Attorney General to bring a civil action to challenge the validity of the proposed extensions. -21-