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property is reviewed on an annual basis to determine its full cash value and the valuation is
<br />adjusted accordingly. This may result in further reductions or in value increases. Such Increases
<br />must be in accordance with the full cash value of the property and it may exceed the maximum
<br />annual inflationary growth rate allowed on other properties tu.der Article )MIA of the State
<br />Constitution. Once the property has regained its prior value, adjusted for inflation, it once
<br />again is subject to the annual inflationary factor growth rate allowed under Article XIIIA. See
<br />"LUVRTATIONS ON TAX REVENUES."
<br />Due to the impact that assessment appeals can have on the taxable values and tax
<br />increment revenues of a project area, the Fiscal Consultant conducted a review of recently
<br />resolved and open appeals. Open appeals are shown on the table below.
<br />TABLE 6
<br />REDEVELOPMENT AGENCY OF THE CITY OF REDWOOD C1TY
<br />Redevelopment Project Area No. 2
<br />Onetr Anneals
<br />Applicant's Estimated Estimated
<br />Original Roll Opinion Resolved Valuation Estimated
<br />Assessee Value of Value Value Reduction Refunds
<br />Mezes Plaza
<br />$13,457,613
<br />$9,000,000
<br />210,227,786
<br />$4,229,827
<br />$32,298
<br />Safeway Inc
<br />2,525,366
<br />841,789
<br />1,919,278
<br />606,088
<br />6,061
<br />Maxygen Inc
<br />16,851,264
<br />7,987,164
<br />12,806,961
<br />4,044,303
<br />40,443
<br />Seaport Centre LLC
<br />56,040,004
<br />39,900,000
<br />42,590,403
<br />13,449,601
<br />134,496
<br />ERA LL
<br />4,828,838
<br />2,645,081
<br />3,669,917
<br />1,158,921
<br />11,589
<br />Minor Appeals (1)
<br />9,605,157
<br />4,755,794
<br />7,587,318
<br />2,017,839
<br />49,798
<br />Total Open $103,308,242 $65,129,828 $78,801,663 $25,506,579 $ 274,685
<br />(1) Includes appeals for two assessees no longer in the Project Area that could have refunc
<br />impacts.
<br />Source Fraser & Associates
<br />For the open appeals, the Fiscal Consultant has estimated the potential impact based on
<br />the average value reduction for the resolved appeals shown above, which equals a 25 percent
<br />reduction. This would result in an estimated value reduction of $24.5 million. For purposes of
<br />the tax increment projections shown on Table 8 below, the Fiscal Consultant has reduced
<br />taxable value for the impact of open appeals for the 2004 -05 fiscal year, and has assumed a
<br />refund impact in fiscal years 2003 -04 and 2004 -05.
<br />Teeter Plan
<br />In 1993, the Board of Supervisors of San Mateo County adopted the Alternative Method
<br />of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the "Teeter Plan"), as
<br />provided for in Section 4701 et seq. of the California Revenue and Taxation Code. Under the
<br />Teeter Plan, each entity levying property taxes In the County may draw on the amount of
<br />uncollected secured taxes credited to its fund, in the same manner as if the amount credited had
<br />been collected. Tax increment generated from the tax roll is allocated to the Agency by the
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