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Report to Redevelopment Agency Board and City Council regarding Cooperation Loan Agreement <br />May 15, 2007 <br />Page 3 of 3 <br />To support staff's expectations for new tax increment in the West Valley Redevelopment <br />Project, Urban Futures Incorporated completed a preliminary fiscal impact analysis to the <br />Redevelopment Agency based upon four potential development scenarios. These four <br />scenarios examined the increase in Assessed Valuation in the Super Block area and <br />included a tax increment pro -forma over the life of the project area. The analysis also <br />examined current conditions within the West Valley Redevelopment Project. The findings <br />(included as an attachment to the related Item) demonstrate that the West Valley <br />Redevelopment Project is currently generating surplus tax increment that could be used to <br />repay a loan from the general fund. The analysis also shows potential increases in <br />assessed valuation from $400 million to $600 million, if the Super Block development activity <br />is successful. This generates between $4 million and $6 million of surplus tax increment <br />annually in the West Valley Redevelopment Project. <br />Finally, staff also notes that several parcels of City -owned property within the Colton Super <br />Block will become development -ready as a result of the proposed conservation plan. These <br />properties will then be marketable as a result of this conservation & economic development <br />strategy, bringing resources to the General Fund in excess of the proposed loan to purchase <br />the RDG property. <br />RELATED ITEMS <br />The Agency Board is considering the Purchase and Sale Agreement for the <br />acquisition of the RDG at this meeting. <br />2. The City will also consider adoption of SB -211 ordinances to eliminate the last date <br />for the Agency to incur debt repayable from tax increment revenues under both the <br />Redevelopment Plan for the West Valley Redevelopment Project and the First <br />Amendment to the West Valley Redevelopment Project. <br />RECOMMENDATION <br />Adopt Agency Resolution No. 863 and City Resolution Approving a Redevelopment <br />Cooperation Loan Agreement by and between the Redevelopment Agency for the City of <br />Colton and the City of Colton for the Purchase of Property Adjacent to and Within the West <br />Valley Redevelopment Project Area. <br />Attachments: <br />Exhibit A City Resolution <br />Exhibit B Agency Resolution No. 863 <br />REVIEW TEAM ONLY <br />ity Attorney: NJ <br />ity Manager: I S1 <br />Finance Director: 14) <br />Agency General Counsel: S <br />